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3 November 2015
Elgin, Illinois Man Indicted for Defrauding Four in Marinette, WisconsinRead the Press Release
Acting United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, announced that a federal grand jury returned an indictment against Gregory J. Kuczora (age: 55) of Elgin, Illinois, charging him with two counts of wire fraud in violation of Title 18, United States Code, Section1343. On each count the defendant faces maximum penalties of not more than twenty years imprisonment, a maximum fine of $250,000, a $100 special assessment, and a three year term of supervised release.
The indictment alleges that from February 2007 to February 2011, Kurzora defrauded approximately 70 individuals nationwide out of just over $1 million, including four individuals from Marinette County, Wisconsin. The defendant promised business loans in exchange for up-front fees, purporting to be an agent of a fictitious financial investment firm located in the United Kingdom. Records show, however, that the investment firm was little more than a website registered in the nation of Panama.
This case was investigated by the Federal Bureau of Investigation and the Marinette County Sheriff’s Office. The case will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Eleventh Guilty Plea in Norteno InvestigationRead the Press Release
BOISE – Jose Enrique Olvera Jr., 51, of Nampa, pleaded guilty today in United States District Court to possession of methamphetamine with intent to distribute and unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced. Olvera was indicted by a federal grand jury on November 14, 2014.
According to the plea agreement, law enforcement agents executed a search warrant at Olvera’s residence on June 18, 2014. During the search, agents found methamphetamine, scales, packaging material, drug ledgers, $2,767, seven firearms, and ammunition. The firearms included a 20 gauge sawed-off shotgun with an obliterated serial number, other shotguns, rifles, and a handgun. Olvera was prohibited from possessing the firearms because he was previously convicted of the felony crime of possession of a controlled substance with intent to deliver in 2003.
The charge of possession of methamphetamine with intent to distribute is punishable by a minimum term of imprisonment of five years and up to forty years, a maximum fine of $5 million, and a minimum term of four years supervised release. The charge of unlawful possession of firearms is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. Olvera is scheduled to be sentenced on January 20, 2015, by Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
Olvera was charged as a result of an investigation by the Treasure Valley Metro Violent Crimes Task Force, which focused on the “Norteno” Northside gang that is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation. So far, nine defendants have been sentenced. Guadalupe Serrano, 35, of Caldwell, was sentenced on April 21, 2015, to 75 months in prison for possession of methamphetamine with intent to distribute and for possessing firearms in furtherance of the drug trafficking crime. Nicole Danelle Nieto, 31, of Nampa, was sentenced on May 26, 2015, to 41 months in prison for distributing methamphetamine. Jose Manuel Menchaca, 35, of Nampa, was sentenced May 28, 2015, to 60 months in prison for distributing methamphetamine. On June 17, 2015, Brandi Larrea, 31, of Nampa, was sentenced to 48 months in prison for distributing methamphetamine and Tara Noelle Rivera, 30, of Nampa, was sentenced to 24 months in prison for distributing methamphetamine. Johnny Lee Martinez, 33, of Nampa, was sentenced on July 20, 2015, to 57 months in prison for distributing methamphetamine. Michael David Bradshaw, 31, of Nampa, was sentenced on August 6, 2015, to 66 months in prison for distributing methamphetamine. Kenny P. Breedlove, 35, of Porterville, California, was sentenced on October 22, 2015, to 110 months for possession of methamphetamine with the intent to distribute. Guillermo Farias Jr., 29, of Nampa, was sentenced on October 26, 2015, to time served and three years of supervised release for his role in assisting with methamphetamine distribution. Richard Lobato, 51, of Nampa, is scheduled to be sentenced on November 19, 2015. Isaac Bright, 21, of Caldwell, is scheduled for trial. Two other defendants have outstanding warrants, including Ruben Rodriguez, 36, and Veronica Cantu, 26, both from Nampa.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Eleven Defendants Plead Guilty to Roles in Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas — Eleven defendants who were indicted in September for their roles in a methamphetamine distribution conspiracy that operated in Wichita Falls, Texas, from approximately March 2014 to August 2015, pleaded guilty last week before U.S. District Judge Reed C. O’Connor in federal court in Wichita Falls. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Each below-listed defendant pleaded guilty to one count of conspiracy to distribute five grams or more of methamphetamine, a Schedule II controlled substance:
Mark Anthony Peysen, 54
Tamara Ann Beasley, 43
Clinton Ray Durham, 47
John Monroe Drullinger, Jr., a/k/a “Johnny D,” 53
Chad Edward Fluharty, 35
Juan Anthony Gabaldon, 31
Vincent Mark Hinson, 36
Curtis Lisle Shawver, 28
James Anthony Streadwick, 54
Michael David Thompson, 50
Cody Shane Walsh, 30Each defendant faces a statutory penalty of at least five years in federal prison and up to 40 years in federal prison and $5 million fine. Each defendant is scheduled to be sentenced on February 22, 2016.
According to documents filed in the case, from approximately March 2014 to August 12, 2015, these defendants conspired together, and with others, to possess with intent to distribute and distribute five grams or more of methamphetamine. They arranged to acquire the methamphetamine and used residences and other locations in the Northern District of Texas to package and distribute it to customers. They delivered and distributed, and coordinated the delivery and distribution of, quantities of methamphetamine. They also acted as intermediaries and brokers to negotiate the acquisition, price, sale and delivery of the methamphetamine, as well as the collection of payment for the methamphetamine.
The Wichita County District Attorney’s Office, the Wichita Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Defendant Sentenced to Serve 30 Years in Federal Prison on Methamphetamine ConvictionRead the Press Release
FORT WORTH, Texas — A defendant who pleaded guilty this summer to an indictment charging one count of distribution of methamphetamine, was sentenced on Friday by U.S. District Judge John McBryde to 360 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Jose Milton Puentes, 34, was arrested in May 2015 in the Los Angeles area on the indictment filed in the Northern District of Texas. He made his initial appearance in federal court in Los Angeles and was released on bond. After he entered his guilty plea in U.S. District Court in Fort Worth on July 17, 2015, Judge McBryde remanded him into federal custody.
According to documents filed in the case, on April 4, 2013, Puentes shipped, or caused to be shipped, approximately one pound of methamphetamine from California to Fort Worth via UPS. The methamphetamine arrived the following day, and the Drug Enforcement Administration (DEA) intercepted it.
The DEA investigated the case, and Assistant U.S. Attorney Shawn Smith prosecuted it.
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Dallas Man Admits Aiming a Laser Pointer at an AircraftRead the Press Release
DALLAS — Orlando Jose Chapa, 37, of Dallas appeared before U.S. District Judge Reed C. O’Connor this morning and pleaded guilty to an indictment charging one count of aiming a laser pointer at an aircraft, announced U.S. Attorney John Parker of the Northern District of Texas.
Chapa, who will remain on bond pending sentencing, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. A sentencing date has not been set.
According to documents filed in the case, on or about May 30, 2015, in the Dallas Division of the Northern District of Texas, Chapa knowingly aimed the beam of a laser pointer at a Texas Department of Public Safety (DPS) helicopter and at the flight path of that aircraft. Chapa aimed the laser at the helicopter from his driveway as it was flying overhead.
The FBI, Texas DPS and the Dallas Police Department are investigating. Special Assistant U.S. Attorney Lara Burns is prosecuting.
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Dakota Weaver Sentenced to 144 Months in Prison for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn.- On November 3, 2015, Dakota Destry Weaver, 20, of Clinton, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 144 months in prison as a result of his conviction for receipt and possession of child pornography. Following his release from prison, Weaver will be supervised by the U.S. Probation Office for a term of 20 years and will be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Weaver pleaded guilty in June 2015 to federal charges stemming from an undercover investigation into trading child pornography on the Internet. A forensic examination of Weaver’s computer revealed that he had collected 1106 still images and 78 videos of child pornography.
This investigation was conducted by U.S. Homeland Security Investigations and Knoxville Police Department’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Cuban National Convicted for his Role in $200k Credit Card Fraud SchemeRead the Press Release
McALLEN, Texas – Alexis Acosta-Guzman, 40, a Cuban citizen who was residing in McAllen, has been convicted of trafficking in access devices, announced U.S. Attorney Kenneth Magidson.
From March 2013 through August 2015, Acosta-Guzman wired thousands of dollars in funds to individuals in China, Russia and the Ukraine. In return, he received more than 1,000 credit card numbers and other personal information that had been stolen from individuals in the United States. Acosta-Guzman transferred that information to others using various email accounts.
He and co-conspirators would then use special devices and the stolen information to create physical credit cards. They used the fraudulent credit cards to make purchases throughout Texas at different retailers and convenience stores.
As a result of the scheme, hundreds of people lost more than $211,000 for the fraudulent charges. Ultimately, the customers’ bank absorbed the losses. As part of his plea, Acosta-Guzman has agreed to pay restitution in the amount of $211,311.15.
U.S. District Judge Micaela Alvarez accepted the plea and set sentencing for Jan. 14, 2016. At that time, Acosta-Guzman faces up to 10 years in federal prison.
The charges are the result of an investigation conducted by the Secret Service, FBI and the McAllen Police Department. Assistant U.S. Attorneys David A. Lindenmuth and Joseph T. Leonard prosecuted the case.
Connecticut Man Pleads Guilty to Tobacco Tax FraudRead the Press Release
BOSTON – A Farmington, Conn. businessman pleaded guilty in U.S. District Court in Springfield yesterday in connection with trafficking untaxed tobacco products.
Harbhajan Singh, 57, pleaded guilty to three counts of contraband smokeless tobacco trafficking. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 1, 2016.
In January 2012, Singh purchased a wholesale tobacco product business operating from a warehouse on East Columbus Avenue in Springfield. After the sale, Singh obtained smokeless tobacco and cigars from a Scranton, Pa. warehouse. Singh subsequently distributed smokeless tobacco without a license and by failing to pay any of the required tax. In June 2012, law enforcement officers executed numerous search warrants on the Springfield warehouse and various other locations in Massachusetts, Connecticut, and Pennsylvania. From January to June 2012, Singh evaded nearly $200,000 in tobacco taxes owed to the state of Massachusetts.
Each count provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Commissioner Kevin B. Sullivan of the Connecticut Department of Revenue Services, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Office.
Company Operator Pleads Guilty to Falsifying Records to United States Department of TransportationRead the Press Release
PHILADELPHIA - Frank Menichini, 73, of Newtown Square, Pennsylvania, pleaded guilty today to a criminal information charging him with one count of falsifying records with the intent to obstruct an investigation by the United States Department of Transportation (“DOT”). U.S. District Court Judge Gerald J. Pappert scheduled a sentencing hearing for February 3, 2016. The defendant faces a maximum sentence of 20 years in prison, up to three years of supervised release, a $250,000 fine and a $100 special assessment.
During his guilty plea, the defendant admitted that he controlled DVG Packaging, Inc. (“DVG”), which marketed and sold plastic bags that the defendant claimed had been tested and certified to meet a pressure test required by the DOT for transporting certain hazardous substances. The defendant falsified a laboratory test report to make it appear as though the bags were certified, even though he knew that they were not. When inspectors from the Pipeline and Hazardous Materials Safety Administration of the DOT requested papers related to the purported certification of the bags, the defendant provided them with the falsified test report.
The case was investigated by the United States Department of Transportation Office of Inspector General, and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
Columbia Man Indicted for Child Sexual ExploitationRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man has been indicted by a federal grand jury for the sexual exploitation of a minor.
Jayme Nathaniel Walker, 40, of Columbia, was charged in a two-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Oct. 28, 2015. That indictment was unsealed and made public upon Walker’s arrest and initial court appearance on Monday, Nov. 2, 2015. Walker remains in federal custody pending a detention hearing on Thursday, Nov. 5, 2015.
The federal indictment alleges that Walker used the Internet and a cell phone to attempt to entice a minor victim to engage in illicit sexual activity between June 17 and Nov. 8, 2013.
The indictment also charges Walker with transferring obscene materials to a minor under the age of 16 on June 18, 2013.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, the Illinois State Police and the Boone County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Clearfield County Man Admits Possessing Controlled SubstanceRead the Press Release
JOHNSTOWN, Pa. - A resident of Luthersburg, Pa., pleaded guilty in federal court in Johnstown to a charge of possession of a controlled substance, United States Attorney David J. Hickton announced today.
Thomas J. Desmond, 24, of Luthersburg, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on March 13, 2014, Desmond possessed a quantity of 3,4 methylenedioxymethcathinone (methylone) hydrochloride with the intent to distribute it.
Judge Gibson scheduled sentencing for April 6, 2016, at 1:30 p. m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, United States Postal Inspection Service, Pennsylvania State Police (Dubois Barracks), and Homeland Security Investigations (Pittsburgh Office) conducted the investigation that led to the prosecution of Desmond.
Casselberry Man Convicted of Possessing Bombs in Winter ParkRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Carl Joseph Thomas Pisa (24, Casselberry) guilty of possessing destructive devices. He faces a maximum penalty of 10 years in federal prison. His sentencing hearing has been set for January 20, 2016.
According to court documents, in December 2014, an undercover agent (UC) contacted Pisa in response to an online ad for a military simulator offered for sale. Pisa agreed to sell him the simulator. Between December 2014 and February 2015, Pisa met with the UC on several occasions to sell the UC explosives. On February 6, 2015, Pisa sold the UC 12 improvised explosive devices in a parking lot in Winter Park. During that meeting, the UC asked Pisa if the explosives could kill somebody, to which Pisa responded, “yes.” In describing the bombs, Pisa explained how ball bearings would blast out from the device in a perfect cone upon initiation. The devices were sent to the Bureau of Alcohol, Tobacco, Firearms, and Explosives laboratory for examination, where they were identified as explosive bombs and destructive devices. It was also determined that they were not properly registered to Pisa in the National Firearms Registration and Transfer Record.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys James D. Mandolfo and Kara M. Wick.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life where law enforcement efforts are focused.
California man pleads guilty to conspiracy to distribute hydromorphoneRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that Lawrence Ray Bennett, Jr., 31, of Los Angeles, California, pleaded guilty in federal court in Bluefield, West Virginia, to conspiracy to distribute hydromorphone. Bennett admitted that from July 2014 to September 2015, he and a co-defendant used the mail to ship and receive hydromorphone. Bennett mailed the drugs from California to his co-defendant, who then sold the pills in and around Bluefield and Princeton, and mailed the proceeds back to Bennett in California. During the investigation of the case, agents seized over 2,500 hydromorphone pills and approximately $19,000 in cash.
Bennett faces up to 20 years in prison and a $1,000,000 fine. The sentencing is scheduled for February 17, 2016, in federal court in Bluefield.
The Southern Regional Drug and Violent Crime Task Force and the United States Postal Service conducted the investigation.
This case was prosecuted as part of the Bluefield Pill Initiative, a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation; the Mercer, McDowell and Wyoming County Sheriff’s Departments; and the Bluefield and Princeton Police Departments.
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Boise Man Sentenced for Transferring Obscene Material to a Minor over the InternetRead the Press Release
BOISE - Kenton Lloyd Flook, 45, of Boise, Idaho, was sentenced today in United States District Court to 84 months in prison followed by seven years of supervised release, for two counts of transfer of obscene materials to a minor, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Flook to forfeit computers and related property used in the commission of the offenses. Flook pleaded guilty to the charges on July 30, 2015.
According to the plea agreement, in March of 2014, an agent with the Federal Bureau of Investigation in Erie, Pennsylvania, and a detective with the Erie, Pennsylvania, Police Department, received information from the mother of a 13-year-old child in Erie that her daughter had engaged in sexually explicit activity with an adult male via the internet. An investigation of the victim's iPod revealed multiple sexually explicit images of the victim and an adult male who represented himself as "Kevin Atton." The investigation also revealed chats between the victim and "Atton" using online chat websites "Omegle" and "KiK," and live video chats using "Skype."
Beginning on February 14, 2014, the chats became sexually explicit in nature, and progressed to the commission of live sex acts and exchanges of sexually explicit photos of one another via the internet. The exchange of sexually explicit photos included sexually explicit photos of the adult male on March 2nd and 3rd, 2014. The victim reported that she told "Atton" that she was 14 years old. "Atton" represented himself as a 21-year-old baseball player and college student at UNLV in Las Vegas, Nevada. The investigation later revealed "Atton" to be Kenton Lloyd Flook, age 44, living in Boise, Idaho.
On July 28, 2014, FBI agents in Idaho served a federal search warrant for Flook's residence in Boise, where they seized an iPad used in the chats. FBI agents in Las Vegas, Nevada located Flook on that same date while he was on a business trip. During an interview with FBI agents, Flook admitted repeatedly communicating with the victim online, that the conversations were sexual in nature, that he engaged in live sexual acts over the internet with the victim, and that he had exchanged sexually explicit images with the victim.
The case was investigated by the Federal Bureau of Investigation in Pennsylvania, Idaho, and Utah, as well as the Erie, Pennsylvania Police Department, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Berkeley County, WV man sentenced to seven years for heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Jose Roberts, 63, of Martinsburg, was sentenced to 84 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
A federal grand jury recently returned an indictment charging Roberts with multiple heroin trafficking offenses following the death of a female victim who used heroin allegedly purchased from Roberts in Berkeley County, West Virginia in May 2014. He pled guilty in August 2015 to a criminal Information charging him with one count of “Aiding and Abetting Distribution of Heroin.”
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Barbour County man sentenced for marijuana traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Shawn Shannon, 55, of Belington, West Virginia, was sentenced today to 30 months in prison for marijuana trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Shannon was one of four individuals charged in March 2015 in a 16-count federal indictment with participating in an extensive oxycodone and marijuana trafficking operation. Specifically, Shannon distributed marijuana in Barbour County, West Virginia. He pled guilty in August 2015 to one count of “Distribution of Marijuana.” As part of the sentenced imposed today, Shannon was also ordered to pay a fine in the amount of $5,000.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force led the investigation. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, the Internal Revenue Service – Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives also investigated.
U.S. District Judge John Preston Bailey presided.
Baltimore Heroin Dealer Sentenced to 20 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Savino Braxton, age 58, of Baltimore, Maryland today to 20 years in prison, followed by five years of supervised release for possession with intent to distribute heroin. The sentence imposed today is consecutive to the six months Judge Bredar imposed during the trial for contempt. A federal jury convicted Braxton on July 23, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to evidence presented at his four day trial, on August 18, 2009, Braxton sold 50 grams of heroin to a confidential source. The source had previously paid Braxton $2,250 for the drugs. Both transactions occurred at an apartment used by Braxton on Goodnow Road in Baltimore. Following the two drug related transactions, a federal search warrant was obtained for the apartment. On September 2, 2009, Braxton was arrested after leaving the apartment and driving to a parking lot on Sinclair Lane. Agents recovered 28 grams of heroin from the center console of Braxton’s vehicle. Keys recovered from Braxton were used to enter the Goodnow Road apartment used by Braxton. Agents recovered from the apartment: $4,270 in cash; a drug tally sheet bearing Braxton’s name; over 1 kilogram of heroin; and drug paraphernalia, including cutting agents, gel caps and scales. Braxton was charged and has his initial appearance on September 3, 2009 and was released under the supervision of U.S. Pretrial Services. Braxton absconded from supervision and was located and arrested on August 17, 2012.
According to court documents, Braxton was originally convicted of this charge on February 11, 2013, after pleading guilty, and was sentenced on June 17, 2013, to 138 months in prison. Braxton appealed to the U.S. Court of Appeals and the judgment was overturned on appeal, leading to his retrial in July 2015.
In 1991, Braxton was sentenced to over 17 years in prison for possession with intent to distribute heroin in U.S. District Court in Baltimore. He was released from prison in August 2006.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys John F. Purcell and Kenneth S. Clark, who prosecuted the case.
Albuquerque Man Arraigned on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Paul Keenahan, 44, of Albuquerque, N.M., was arraigned this morning on an indictment charging him with distribution and possession of visual depictions of minors engaged in sexually explicit conduct. During this morning’s proceedings, Keenahan was ordered detained pending trial based on judicial findings that he poses a risk of flight and a danger to the community.
The federal indictment charges Keenahan with three counts of distribution of child pornography and three counts of possession of child pornography. It alleges that Keenahan committed the six offenses in Bernalillo County, N.M., between Nov. 2012 and July 2015.
According to court filings, Keenahan was initially charged with related state child pornography crimes in July 2015, and was released on a bond that included the condition that he not leave Bernalillo County without prior permission from the state court. On Aug. 28, 2015, the U.S. Marshals Service arrested Keenahan in Syracuse, N.Y., on a state arrest warrant that was issued after Keenahan violated his bond conditions. A federal criminal complaint was filed on Sept. 4, 2015, and the U.S. Marshals Service arrested Keenahan, who was in custody in New York on Sept. 24, 2015, on the federal charges. The federal indictment was filed on Oct. 7, 2015, while Keenahan was in the process of being transferred from New York to New Mexico to face the federal charges against him. He made his initial appearance in federal court yesterday.
According to the criminal complaint, the investigation into Keenahan began in July 2015, when the New Mexico Internet Crimes Against Children (ICAC) Task Force received a tip that a particular IP address was being used to share child pornography. Investigation revealed that the IP address was subscribed to a motel on Candelaria Road NE in Albuquerque, where it allegedly was being used by Keenahan, who was then employed by the motel and living at the motel.
The criminal complaint alleges that officers executed a state search warrant at Keenahan’s room on July 23, 2015, and seized a laptop computer containing files allegedly consistent with child pornography. Keenahan was arrested on state charges that day. A forensic examination of Keenahan’s laptop computer revealed that it contained more than 10,000 files of alleged child pornography.
The penalty upon conviction on each of the three distribution of child pornography charges is a mandatory minimum of 5 years and a maximum of 20 years in federal prison. The penalty upon conviction on the possession charge is a maximum of ten years in federal prison. Charges in criminal complaints and indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the New Mexico ICAC Task Force, Bernalillo County Sheriff’s Office, Albuquerque office of the FBI, Office of the New Mexico Attorney General, and the U.S. Marshals Service with assistance from the 2nd Judicial District Attorney’s Office and the U.S. Attorney’s Office for the Northern District of New York.
Assistant U.S. Attorney Sarah Mease is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 80 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alabama man sentenced to 10 years in prison for transporting child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a man from Alabama was sentenced last week to 120 months in prison for transporting sexually explicit pictures of a minor.
Mario Duran, 50, of Jemison, Ala., was sentenced Wednesday by U.S. District Judge Richard T. Haik on one count of transporting child pornography. He was also sentenced to five years of supervised release and ordered to register as a sex offender. According to evidence presented at the guilty plea, Acadia Parish Sheriff’s deputies, while investigating another case, made contact with Duran in April of 2014 while he was parked in his truck in the Crowley, La., Wal-Mart parking lot. Present with Duran were two minor females. The minors said they did not know Duran, and that he had picked them up in Alabama and was transporting them to Texas to meet their father. The vehicle was searched, and three cell phones were found. Upon further investigation, law enforcement agents found sexually explicit pictures of a minor on one of the phones. The images on the phone were not of the minors Duran was transporting.
“I would like to thank the Acadia Parish Sheriff’s officers and ICE agents for apprehending and removing this child predator from our streets,” Finely stated. “Our office will continue to aggressively prosecute these types of crimes to protect our community.”
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone app (http://www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
Homeland Security Investigations and the Acadia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog and Myers P. Namie prosecuted the case.
Aggravated felon sentenced to 30 months in prison for illegally reentering the United StatesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Honduran national was sentenced Monday to 30 months in prison for reentering the country after having been previously deported for committing an aggravated felony.
Timoteo Gonzalez-Leiva, 42, of Las Ceiba Atlantia, Honduras, was sentenced by U.S. District Judge Donald E. Walter on one count of illegal reentry after being deported as an aggravated felon. He was also ordered deported once his prison term is served. According to evidence presented at the July 28, 2015 guilty plea, Shreveport Police arrested Gonzalez-Levia on October 26, 2014. On October 28, 2014, he was convicted of simple battery and sentenced to jail. On January 7, 2015, at the completion of his jail sentence, the Caddo Parish Sheriff notified U.S. Immigration and Customs Enforcement of his pending release. ICE agents found that the defendant had been deported and then unlawfully returned to the United States multiple times. He was arrested in March of 1998 for first degree robbery in Delaware and sentenced to two years in prison. After serving the prison sentence, he was deported as an aggravated felon to Honduras. He later unlawfully reentered the United States again, was arrested and removed in April of 2004, and again in February of 2006.
The U.S. Immigrations and Customs Enforcement-Immigration Enforcement, the Caddo Parish Sheriff’s Department and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
2 November 2015
Wichita Falls Man Sentenced to 110 Months in Federal Prison on Methamphetamine ConvictionRead the Press Release
WICHITA FALLS, Texas — Doty Lee Standridge, 31, of Wichita Falls, Texas, was sentenced this week by U.S. District Judge Reed C. O’Connor to 110 months in federal prison following his guilty plea in June 2015 to one count of possession with intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Standridge’s co-defendant in the case, Joshua Antonio Ramirez, 30, of Lawton, Oklahoma, pleaded guilty last month to the same offense and is scheduled to be sentenced on January 4, 2016. He faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
According to documents filed in the case, from approximately January 2013 until November 2014, Standridge obtained quantities of methamphetamine from suppliers, including Ramirez, and he distributed that methamphetamine in the Wichita Falls area and elsewhere.
The quantities of methamphetamine that Standridge obtained and distributed varied. He frequently obtained methamphetamine in one to two-ounce quantities and distributed one-eighth ounce (approximately 3.5 gram) and one-quarter ounce (approximately 7.0 gram) quantities.
Texas DPS investigated. Assistant U.S. Attorney Mary Walters prosecuted.
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Victoria Man Pleads Guilty to Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – James Peyton Busbee Jr., 30, of Victoria, has entered a guilty plea to sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson.
On Feb. 3, 2015, authorities responded to Busbee’s residence in reference to the possible sexual assault of a child. A minor male relative was identified and confirmed the abuse. Busbee also admitted to sexually assaulting the child.
A forensic examination of Busbee’s phone led to the discovery of an electronic video depicting Busbee involved in sexually explicit conduct with the child.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for Feb. 1, 2016. At that time, Busbee faces a minimum of 15 and up to 30 years in federal prison. Upon completion of any prison term imposed, Busbee also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Busbee was arrested on the federal charges in April 2015 and has been in custody since that time where he will remain pending his sentencing hearing.
The charges were the result of an investigations conducted by Homeland Security Investigations with the assistance of the Victoria County Sherriff’s Office.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
United States Sues Railroad Worker for Submitting False Compensation ClaimsRead the Press Release
PHILADELPHIA - The United States filed a civil fraud lawsuit today against Wilbert D. McKinzie, an Amtrak employee, of Chester, Pennsylvania, alleging that he submitted claims for sickness compensation to which he was not entitled, announced United States Attorney Zane David Memeger. According to the complaint, McKinzie was working another job as a home health aide while submitting claims for sickness compensation from the United States Railroad Retirement Board. McKinzie collected $9,517.60 that he was not eligible to receive.
The United States filed the lawsuit under the False Claims Act. Under the False Claims Act, a person who causes false or fraudulent claims to be submitted to the government for payment is liable for three times the government’s damages, plus civil penalties for each false claim. The allegations against McKinzie are allegations only and not findings of liability. To resolve the matter, McKinzie has agreed to enter into a consent judgment.
The allegations arose from an investigation led by the United States Railroad Retirement Board Office of Inspector General. The case was handled by Assistant United States Attorneys Richard M. Bernstein and Michael S. Macko.
U.S. Attorney’s Office Launches “U Can Stop Traffick” Campaign Against Sex and Drug TraffickingRead the Press Release
United States Attorney Eric S. Miller, along with representatives from Vermont’s 2-1-1 network, Give Way to Freedom, the United Way, the Vermont Department of Child and Family Services, the Center for Crime Victim Services, the Vermont Attorney General’s Office, the Vermont Network Against Domestic and Sexual Violence, the Vermont Human Trafficking Task Force, elected leaders, and other non-profit and law enforcement entities today announced the launch of a new campaign raising awareness about sex and drug trafficking activities in the state.
The campaign will kick off with the release of the “U Can Stop Traffick” public service announcement, which will begin airing on Vermont television stations today and can be viewed on the campaign’s website, www.UCanStopTraffick.org. The website also includes the powerful stories of women who have been trafficked, recorded in their own words and voices, along with resource lists for individuals in need of help.
As Miller explained at a press conference at Burlington’s Contois Auditorium, heroin traffickers in Vermont do not work alone. They rely on local networks of people to support their illegal and destructive business model. These networks assist drug dealers by providing housing, contacts, and vehicles, and by transporting drugs. In some cases, Vermonters are also used by drug dealers for sex trafficking that profits their illicit drug organizations.
“We in law enforcement are working closely with our non-profit partners and elected leaders to undermine the foundations of drug dealing and help victims escape traffickers,” U.S. Attorney Miller said. “This public service announcement will raise awareness of the dangerous intersection of drug and sex trafficking in Vermont and connect affected individuals with the help and resources they need.”
U.S. Senator Patrick Leahy, D-VT, who led successful efforts to reauthorize the Violence Against Women Act and the Trafficking Victims Protection Act and recently brought funding to Vermont to combat heroin trafficking, lauded the work of the U.S. Attorney’s Office and its partners. Leahy said: “Once again Vermont is leading the way to find thoughtful, effective solutions to problems that erode our communities. Drug trafficking and human trafficking are terrible crimes. They destroy lives, devastate families and weaken communities. To fight back effectively, we must coordinate our efforts, and I am proud to see the collaboration among such dedicated partners.”
Burlington Mayor Miro Weinberger said: “Today’s fight against the opiate crisis in our community requires an all hands on deck response and engaging all aspects of the problem. The Burlington Police Department is redoubling its efforts to stop the rising trafficking of heroin in our community and to stand up for the many victims of this terrible trade. I am grateful for the important partnership with the U.S. Attorney’s Office, the Governor’s Office, the State’s Attorney’s Office, medical providers, and community support services in this fight against drug and sex trafficking in Vermont.”
The U Can Stop Traffick public service announcement was conceived by the United States Attorney’s Office, which engaged its law enforcement, non-profit, and social service providers to help create the campaign. The video and website were produced by Moving Pictures Division and the design work was done by RetroMotion Creative of Williston, Vermont and can be viewed at www.UCanStopTraffick.org.
U.S. Attorney’s Office Awarded Funding for Reentry and Prevention Outreach Coordinator Positions to Further Department of Justice’s “Smart on Crime” InitiativeRead the Press Release
SACRAMENTO, Calif. — The Office of the United States Attorney for the Eastern District of California announced today that it is seeking applications for two Reentry and Prevention Outreach Coordinators to work in the Sacramento and Fresno offices to help in the development and implementation of the U.S. Department of Justice’s Smart on Crime initiative.
The selected applicants will focus on reentry and prevention efforts as part of the office’s implementation of the Smart on Crime Initiative. Supporting effective crime prevention strategies and working to reduce recidivism among persons who have paid their debt to society and are rehabilitating and reintegrating back into their communities are key components of the initiative. Recidivism rates for offenders leaving prison are high. A reduction in the recidivism rate of even one or two percentage points can create long-lasting benefits for formerly incarcerated individuals and their communities.
“This office’s main function is, and will remain, the prosecution of serious and violent offenders,” said U.S. Attorney Wagner. “But prosecutions alone will not ensure public safety over the long term. This office has been increasing its involvement in community-based crime prevention and reentry strategies. I am very pleased that we are now hiring dedicated professionals to help lead these efforts. When hired, these persons should bring new expertise to this office, increasing our capacity to assist in prevention and reentry, while minimizing the impact on our prosecutorial resources.”
In 2013, then Attorney General Eric Holder launched a comprehensive review of the criminal justice system in order to identify reforms that would ensure federal laws are enforced more fairly and more efficiently. This review was part of the Department of Justice’s Smart on Crime Initiative, which has five principal goals: 1) ensuring that finite federal resources are devoted to the most important law enforcement priorities; 2) promoting fairer enforcement of the laws and alleviating disparate impacts of the criminal justice system; 3) ensuring just punishments for low-level, nonviolent convictions; 4) bolstering reentry and prevention efforts to deter crime and reduce recidivism; and 5) strengthening protections for vulnerable populations.
Since the initiative’s announcement, the U.S. Attorney’s Office for the Eastern District has worked with our federal, state, and local law enforcement partners to focus our federal prosecutions on those crimes and criminals in our district that pose the greatest threats to our citizens and involve clear federal interests. To support the implementation of the reentry and prevention aspects of the initiative, the office sought and was awarded funding for two specialist positions. The Reentry and Prevention Outreach Coordinators will help the office to engage with youth and with at-risk populations to help prevent criminal activity, and they will also work with other agencies to support programs and strategies to facilitate the reentry of convicted persons into our communities in ways that maximize their chances of becoming productive citizens. It is anticipated that one coordinator will be based in the Sacramento office and one in the Fresno office.
The job postings for the Reentry and Prevention Outreach Coordinator positions can be found at: https://www.usajobs.gov/GetJob/ViewDetails/420327700 for Sacramento and https://www.usajobs.gov/GetJob/ViewDetails/420328700 for Fresno.
Additional information on the Department of Justice’s Smart on Crime initiative can be found at: http://www.justice.gov/sites/default/files/ag/legacy/2013/08/12/smart-on-crime.pdf.
The President, appearing in Newark, New Jersey today, announced a range of actions to promote rehabilitation and reintegration of formerly incarcerated persons. That announcement can be found at: https://www.whitehouse.gov/the-press-office/2015/11/02/fact-sheet-president-obama-announces-new-actions-promote-rehabilitation.
The United States Government does not discriminate in employment on the basis of race, color, religion, sex, national origin, political affiliation, sexual orientation, marital status, status as a parent, genetic information, disability, age, membership or nonmembership in an employee organization, or on the basis of personal favoritism.
U.S. Attorney's Office Reminds New Jersey Voters to Use Election Day Hotline for Complaints of Voting Irregularities or AbusesRead the Press Release
NEWARK, N.J. – Tuesday, Nov. 3, 2015, is New Jersey’s general election, and U.S. Attorney Paul J. Fishman is reminding voters to use the Election Day Hotline if they suspect voter fraud. The U.S. Attorney’s Office will receive and respond to reports of election irregularities, voter intimidation or any other activities that would interfere with a citizen’s right to vote. The Election Day Hotline – (888) 636-6596 – is active now through Nov. 4, 2015, and will be staffed live on Election Day in English and in Spanish.
The Department of Justice and federal law enforcement partners will work with county boards of election and the New Jersey Attorney General’s Office to respond to complaints and direct them to the appropriate authority.
The Justice Department seeks to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted, without discrimination, intimidation or fraud.
Established in 2010, this yearly initiative is intended to foster public confidence in the integrity of the election process by providing local points of contact within the Justice Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
The Justice Department and federal investigative agencies, led by the FBI, work cooperatively with the state Attorney General’s Office, under the direction of Acting Attorney General John J. Hoffman, to enforce voters’ rights at the polls.
The Department of Justice Civil Rights Division staff in Washington also will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-514-0716). In addition, individuals may also report complaints, problems, or concerns related to voting by fax to 202-307-3961, by email to [email protected], and, by complaint forms that may be submitted through a link on the Department’s website, at http://www.justice.gov/crt/complaint/votintake/index.php.
Two More Commercial Trash Haulers Admit to Bribing Baltimore City Landfill EmployeesRead the Press Release
Baltimore, Maryland – Quentin Turgot Glenn, age 49, of Hanover, Maryland, who owned and operated Glenn Services, LLC, a trash hauling business, pleaded guilty today to conspiracy and bribery in connection with a scheme in which commercial haulers paid Department of Public Works (DPW) employees cash in return for allowing the haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees.
Jessie Lee Wilson, Jr., age 40, of Baltimore, who was employed by Glenn Services as a truck driver, pleaded guilty on October 30, 2015 to the conspiracy and bribery.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
The DPW’s Bureau of Solid Waste is responsible for managing Baltimore City’s waste management services, including overseeing citizen drop-off centers, such as the Northwest Transfer Station (NWTS) and the Landfill. Baltimore City’s waste management system generates revenue for the City by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities. The City contracts with private salvage companies to purchase and remove scrap metal from its trash collection facilities. DPW employees at the Landfill and NWTS are required to place the recyclable scrap metal in separate bins provided by the salvage companies. The salvage companies regularly pick up the scrap metal and, based on predetermined prices per ton, the salvage companies pay the City for the value of the scrap metal.
Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with the City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located farther within the Landfill. Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.
DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, and record the weight on a computerized point-of-sale system. To activate the system and record a particular transaction, DPW employees must enter the tag number of the truck and a corresponding billing code. The scale house operators reweigh each truck as it leaves the Landfill. The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.
According to facts agreed upon by Wilson and Glenn, at times when Wilson drove a truckload of trash to the Landfill, neither he nor Glenn Services was charged a disposal fee. In return, Glenn Services paid scale house employees a bribe of $100 per truckload of trash. After a certain number of unpaid trips, Glenn would arrange for himself or one of his drivers, including Wilson, to meet a scale house operator to pay the balance of the cash bribes.
In a recorded phone conversation on January 23, 2015, Wilson explained to a scale house employee why Glenn Services had not yet paid bribes on dozens of trips to the Landfill. Wilson said he had tried to text the employee using coded language to arrange a meeting, and that he carried the bribery money around in his pocket for so long that he eventually tried to give it back to Glenn, but Glenn insisted that Wilson keep the money until the employee was ready to receive it.
In another recorded phone conversation with the employee on January 29, Wilson said he needed the “numbers for the dinner,” and the employee replied that Glenn Services still owed for 34 trips, or $3,400. In a subsequent call, Wilson confirmed that in addition to paying this amount, Glenn would also pay for the few times Glenn Services was actually charged for dumping (at the FBI’s direction).
On February 1, 2015, Wilson met the employee at a parking lot on Edmondson Avenue in Baltimore City and gave the employee $2,500 in cash. He said that Glenn would give her the rest later in the week, and complained about the times Glenn Services was actually charged a disposal fee, which was a “[c]ouple of them…was like 16, 1700 dollars.”
On April 21, 2015, in a series of phone calls and text messages, the employee told Wilson that Glenn owed for 39 trips since February 1, 2015, plus for five other trips, for a total of $4,400. Wilson arranged a meeting between the employee and Glenn.
On April 23 and 24, Glenn met with the employee, providing a total of $4,000 in cash for 40 trips to the Landfill. Also during the meetings, they agreed to deal directly with each other without going through Wilson or Tamara Washington, another DPW employee, and to try to meet more regularly every time Glenn’s drivers made 10 trips to the Landfill.
From July 1, 2014 to May 1, 2015, Wilson fraudulently gave and agreed to participate in giving DPW employees cash payments in lieu of paying waste disposal fees that totaled more than $5,000.
Glenn and Wilson face a maximum sentence of five years in prison for the conspiracy and 10 years in prison for bribery. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Glenn on January 15, 2016 at 9:30 a.m. and for Wilson on January 12, 2016, at 9:30 a.m.
Former DPW employees Tamara Oliver Washington, age 55, and William Charles Nemec, Sr., age 55, both of Baltimore; and commercial haulers Larry Lowry, age 61, of Orchard Beach, Maryland; Mustafa Sharif, age 63, of Baltimore; and Adam Williams, Jr., age 52, of Randallstown, have pleaded guilty to their participation in the bribery scheme. Nemec and another DPW employee, Michael Theodore Bennett, age 46, also of Baltimore, have pleaded guilty to a related “junking” scheme. Washington and Nemec have each agreed to the entry of an order to pay $6 million in restitution, and Bennett agreed to the entry of an order to pay restitution of $526,273. Sharif, Williams and Lowry have agreed to the entry of an order to forfeit and pay restitution of $500,000, $900,000, and $350,000, respectively.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General, and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.
Two Men Convicted for Roles in Multi-State $3.4 Million Burglary SpreeRead the Press Release
NEWARK, N.J. – A North Jersey man and a Brooklyn, New York, man were convicted today on multiple counts in connection with a multimillion-dollar, multi-state burglary spree, U.S. Attorney Paul J. Fishman announced.
Daniel “Tokyo” Gatson, 43, of North Bergen, New Jersey, and Anthony Hanks, 36, of Brooklyn, were each convicted of one count of conspiracy to transport stolen property in interstate commerce; Gatson was convicted of 11 counts, and Hanks three counts, of interstate transportation of stolen property. The two men were convicted following a three-week trial before U.S. District Judge William J. Martini in Newark federal court. The jury deliberated a day and a half before returning the verdicts.
According to documents filed in this case and the evidence at trial:
Gatson, Hanks and four conspirators – who previously pleaded guilty and testified against Gatson and Hanks – took part in 27 burglaries and attempted burglaries in six states, stealing $3.4 million in cash and valuables.
The conspiracy count on which the defendants were found guilty carries a maximum potential penalty of five years in prison. The substantive counts of interstate transportation of stolen property each carry a maximum potential penalty of 10 years in prison. Sentencing is scheduled for Feb. 11, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli, with the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorney Joshua Hafetz of the Criminal Division in Newark and Special Assistant U.S. Attorney Thomas S. Kearney, on loan from the Bergen County Prosecutor’s Office.
Defense counsel:
Gatson: Michael Pedicini Esq., Chatham, New Jersey
Hanks: Peter S. Gordon Esq., Forest Hills, New York
Two Men Arrested in Montgomery Following Multi-Agency InvestigationRead the Press Release
Montgomery, Alabama - Daniel Garcia, aka “Cholo” 41, and Jhony Hernandez, aka “Manuel Barrior Ramirez” 23, both from Mexico, were arrested in Montgomery on October 29, 2015, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
The arrests came after a lengthy investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, and Homeland Security Investigations into drug trafficking and prostitution in Alabama and elsewhere. Both Garcia and Hernandez have been charged in a federal indictment alleging that they possessed with intent to distribute controlled substances in the Middle District of Alabama. Garcia is alleged to have possessed and distributed both cocaine and methamphetamine. Hernandez is alleged to have possessed and distributed methamphetamine. Neither man has been charged in the prostitution aspect of the case.
For these crimes, Garcia could face up to twenty years imprisonment and a $1,000,000 fine for his alleged cocaine possession. For his alleged methamphetamine possession, Garcia could face imprisonment for not less than ten years and up to a $10,000,000 fine. Hernandez, for his methamphetamine possession, could face imprisonment for not less than five years and up to a $5,000,000 fine.
An arrest is merely a method of charging a defendant and each defendant is presumed innocent unless and until the defendant=s guilt has been proven beyond a reasonable doubt at trial.
This case was investigated by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI) Safe Streets Task Force, Homeland Security Investigations (HSI), High Intensity Drug Trafficking Area (HIDTA) Task Force, Alabama Law Enforcement Agency (ALEA), including the State Bureau of Investigations, Department of Public Safety, and the Fusion Center, the Alabama Attorney General’s Office, Montgomery Police Department, Autauga County Sheriff’s Office, Prattville Police Department, Elmore County Sheriff’s Office, Central Alabama Drug Task Force, Auburn Police Department, Millbrook Police Department, Dothan Police Department, Alabama National Guard Counterdrug Program, Albertville Police Department, Marshall County District Attorney’s Office, Marshall County Sheriff’s Office, Marshall County Against Domestic Violence Coalition, and the 19th Circuit District Attorney’s Office. The cases are being prosecuted by Assistant U.S. Attorneys Verne Speirs and Ben Baxley.
Two Former Jailers at the Kentucky River Regional Jail Indicted on Charges Related to the Death of A Pretrial DetaineeRead the Press Release
The Justice Department announced today that a federal grand jury in London, Kentucky, has indicted two former deputy jailers at the Kentucky River Regional Jail on charges related to the July 9, 2013, in-custody death of Larry Trent, a pretrial detainee at the jail. The indictment charges Damon Hickman, 38, and William Howell, 59, with causing Trent’s death, and charges Hickman with attempting to cover up his involvement in the death.
Hickman and Howell are charged with federal civil rights violations for depriving Trent of his civil rights. Count one of the indictment charges Hickman and Howell of failing to provide Trent with necessary medical care after he was injured, thereby acting with deliberate indifference to a substantial risk of harm to Trent, which resulted in Trent’s death. Count two of the indictment also charges both defendants with using excessive force against Trent, resulting in bodily injury to him.
Hickman is additionally charged with one count of obstruction of justice for falsifying an official log by indicating that observations of Trent were being made and that Trent was “10-4,” meaning that he was safe and not in obvious physical distress, when in fact Trent was not “10-4.”
Hickman and Howell face a maximum penalty of life in prison for the death-resulting civil rights offense, and face a maximum penalty of 10 years in prison for assaulting Trent. Hickman faces a maximum penalty of 20 years in prison for falsification of records in a federal investigation.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The case is being investigated by the FBI’s London Resident Agency, with assistance provided by the Kentucky State Police. The case is being prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Hydee Hawkins of the Eastern District of Kentucky.
Hickman and Howell Indictment
Two Former Jailers at the Kentucky River Regional Jail Indicted on Charges Related to the Death of A Pretrial DetaineeRead the Press Release
hickman_damon_-_indictment.pdf (80.65 KB)WASHINGTON – The Justice Department announced today that a federal grand jury in London, Kentucky, has indicted two former deputy jailers at the Kentucky River Regional Jail on charges related to the July 9, 2013, in-custody death of Larry Trent, a pretrial detainee at the jail. The indictment charges Damon Hickman, 38, and William Howell, 59, with causing Trent’s death, and charges Hickman with attempting to cover up his involvement in the death.
Hickman and Howell are charged with federal civil rights violations for depriving Trent of his civil rights. Count one of the indictment charges Hickman and Howell of failing to provide Trent with necessary medical care after he was injured, thereby acting with deliberate indifference to a substantial risk of harm to Trent, which resulted in Trent’s death. Count two of the indictment also charges both defendants with using excessive force against Trent, resulting in bodily injury to him.
Hickman is additionally charged with one count of obstruction of justice for falsifying an official log by indicating that observations of Trent were being made and that Trent was “10-4,” meaning that he was safe and not in obvious physical distress, when in fact Trent was not “10-4.”
Hickman and Howell face a maximum penalty of life in prison for the death-resulting civil rights offense, and face a maximum penalty of 10 years in prison for assaulting Trent. Hickman faces a maximum penalty of 20 years in prison for falsification of records in a federal investigation.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The case is being investigated by the FBI’s London Resident Agency, with assistance provided by the Kentucky State Police. The case is being prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Hydee Hawkins of the Eastern District of Kentucky.
The Justice Department and U.S. Department of Housing and Urban Development Announce New Juvenile Re-Entry Assistance ProgramRead the Press Release
New Re-Entry Program Aims to Reduce Barriers to Public Housing, Employment and Educational Opportunities
In an effort to reduce barriers for justice-involved youth, the U.S. Department of Justice and the U.S. Department of Housing and Urban Development (HUD) today announced a new Juvenile Re-Entry Assistance Program: a $1.7 million initiative to help Public Housing Authorities (PHAs) and legal assistance organizations address challenges to housing and employment among justice-involved individuals.
Through the Juvenile Re-entry Assistance Program (JRAP), DOJ and HUD are working collaboratively to help individuals that have paid their debt to society rehabilitate and reintegrate back into their communities. This program specifically excludes those who are convicted of making methamphetamine drugs, sex offenses or domestic violence.
"The Department of Justice is committed to giving justice-involved youth the tools they need to become productive members of society," said Attorney General Loretta Lynch. "Providing meaningful support through housing opportunities, prevention programs and other critical services is vital to our ongoing efforts to reduce recidivism, promote public safety and foster positive results in communities across the country."
Additionally, HUD announced updated public housing arrests guidance to PHAs regarding the use of arrests in determining who can live in HUD-assisted properties. The Guidance outlines that arrest records may not be the sole basis for denying admission, terminating assistance or evicting tenants; and reiterates that HUD does not require PHAs and owners to adopt “One Strike” policies and includes best practices and models of success from PHAs across the nation.
HUD Secretary Julián Castro made these announcements today in Chicago as part of the Obama Administration’s criminal justice and reentry incentive.
“Life is about second chances and offering young people an opportunity to turn away from their mistakes and get back on the right path,” said Secretary Castro. “These grants will allow Public Housing Authorities to help these young people to reach their potential and begin to contribute to their own communities.”
Having a juvenile or a criminal record can severely limit a person’s ability to seek higher education, find good employment, or secure affordable housing. Today, there are nearly 55,000 individuals under age 21 in juvenile justice facilities. These consequences create unnecessary barriers to economic opportunity and productivity, and President Obama and members of his Cabinet continue to take impactful steps to ensure those exiting the justice system become productive, law-abiding citizens.
Tatum, N.M., Man Charged with Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Robert Wraldo Duncan, Jr., 66, of Tatum, N.M., made his initial appearance this morning in federal court in Las Cruces, N.M., on a criminal complaint charging him with violating the federal narcotics trafficking laws. Duncan is being held pending a preliminary hearing and detention hearing scheduled for Nov. 4, 2015.
The criminal complaint, which was filed by the DEA, charges Duncan with possession of marijuana with intent to distribute. It alleges that Duncan committed the offense on Oct. 30, 2015, in Doña Ana County, N.M.
According to the complaint, Duncan was arrested on Oct. 30, 2015, by U.S. Border Patrol agents at the Border Patrol traffic checkpoint on Highway 70, west of Alamogordo, N.M. The arrest was made after the agents allegedly discovered 39 bundles of marijuana weighing an aggregate of 1,116.6 pounds concealed in a horse trailer that Duncan was towing with his vehicle. The agents also allegedly found an unloaded revolver in the center console of Duncan’s vehicle.
If convicted of the marijuana trafficking charge, Duncan faces a statutory minimum of five years and a maximum of 40 years in federal prison. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the DEA and the Alamogordo station of the U.S. Border Patrol. Assistant U.S. Attorney Randy M. Castellano is prosecuting the case.
Springfield Man to Serve 25 Years in Federal Prison after 18-Year State SentenceRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough has ordered Charles Raymond Schrode, (SHROH-dee) 33, of Springfield, Ill., to serve 25 years in federal prison for sexual exploitation of a minor and receiving and possessing child pornography. Schrode’s sentencing hearing concluded late Friday, Oct. 30, 2015.
Judge Myerscough ordered that Schrode’s federal sentence be served consecutive to an 18-year sentence with the Illinois Department of Corrections. Schrode pled guilty in February 2014, to a charge of predatory criminal sexual assault in Sangamon County. Judge Myerscough further ordered that Schrode remain on supervised release for life following his release from prison.
On Feb. 24, 2015, Schrode entered open guilty pleas to the federal charges: receipt of child pornography (one count) in May 2012; sexual exploitation of a minor (two counts) in February and March 2013; and possession of child pornography (one count) in June 2013.
The federal charges were investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Gregory K. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
SoCal Company Pays $4 Million and Enters into Agreement to Resolve Allegations it Overcharged U.S. Military for Fruit, VegetablesRead the Press Release
LOS ANGELES – A Los Angeles company has paid $4 million to resolve civil allegations that it fraudulently overcharged the U.S. military for fresh fruits and vegetables that it supplied to military dining facilities and Navy ships in Southern California. As part of a second agreement with criminal prosecutors, Coast Produce Company will implement various measures to ensure the company complies with its legal obligations.
Coast Produce Company’s settlement agreements with the government resolve a civil lawsuit and criminal investigation into allegations that the company violated the federal False Claims Act and obstructed an investigation related to two contracts the company had with the Department of Defense (DoD) to supply fresh produce to the military in the Los Angeles and San Diego regions.
The allegations against Coast Produce first surfaced in a “whistleblower” lawsuit filed in 2008 by an industry consultant. To resolve the allegations in the lawsuit, Coast paid a $4 million settlement on September 2, and United States District Judge David O. Carter unsealed and dismissed the civil lawsuit on September 17.
Under its contract with the DoD, Coast Produce allegedly was required to charge only the current prices charged to Coast by its own suppliers for the fruits and vegetables (the “delivered price”), plus an additional fixed $1.50-per-unit distribution fee that included Coast’s profit. The lawsuit alleged that Coast Produce knowingly overcharged the military on the delivered prices in three ways: 1) by instructing two suppliers to provide inflated quotes for produce, which the company then submitted to the DoD as pricing support, while simultaneously instructing the two suppliers to actually bill at their regular lower prices; 2) by charging the DoD more than it paid for bananas and pineapples under long-term fixed-price supply contracts; and 3) submitting artificially high quotes to the DoD – typically from vendors Coast Produce had no intention of buying from – in order to set a payment rate, but then actually purchasing the produce it supplied at lower prices, and keeping the difference.
The settlement arises from a qui tam, or whistleblower, lawsuit originally filed under seal in 2008 by Kevin Driscoll pursuant to the provisions of the federal False Claims Act. The United States Attorney’s Office investigated Mr. Driscoll’s allegations, elected to intervene in the lawsuit, and negotiated the settlement. Pursuant to the False Claims Act, Mr. Driscoll will receive $920,000.
In relation to the criminal investigation, the United States Attorney’s Office on September 2 filed a criminal information against Coast Produce, alleging that the company altered or falsified records. The information alleged that Coast Produce provided false invoices to the DoD when it requested evidence concerning the prices Coast was paying for produce it provided the military. The criminal information was filed pursuant to a Deferred Prosecution Agreement, in which the government agreed to defer any criminal case against Coast Produce for a two-year period in return for the company’s agreement to implement various compliance and remedial measures during that period, among other things. If Coast Produce does not violate the agreement during the 24-month period, the government will not proceed with a criminal case against Coast.
In an ordered signed on Friday, United States District Judge Percy Anderson dismissed the information filed by the government, which can be refiled in the event of a breach of the agreement by Coast.
“The agreements with Coast Produce demonstrate that this office will use all criminal and civil tools at its disposal to ensure that contractors who overcharge the United States military are held accountable,” said United States Attorney Eileen M. Decker. “Companies that supply Produces and services to our military members should know that our office will aggressively investigate those who seek to unlawfully profit from that relationship.”
Chris D. Hendrickson, Special Agent in Charge of the Department of Defense, Defense Criminal Investigative Service, stated: “The government’s settlement agreements with Coast show the continued dedication by the Defense Criminal Investigative Service and the Department of Justice to protect those funds entrusted to the U.S. military. Overcharging the Department of Defense is always reprehensible because it drains precious funds and resources necessary to protect America’s warfighters. The Defense Criminal Investigative Service will continue to investigate any individual or business who pursues personal enrichment at the expense of U.S. taxpayers.”
There is no allegation that the fruits and vegetables supplied by the company were unsatisfactory in quality. Coast Produce agreed to the civil settlement without admitting any wrongdoing. As to the criminal Deferred Prosecution Agreement, Coast admitted the facts attached to the DPA, but did not admit that it committed any crime.
The government’s investigation was conducted by the Defense Criminal Investigative Service, assisted by the U.S. Army Criminal Investigation Command and the U.S. Department of Agriculture’s Office of Inspector General.
Roswell Man Sentenced to Prison for Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Francisco Mejia, 44, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 46 months in prison followed by three years of supervised release for violating federal narcotics trafficking laws.
Mejia was arrested on March 17, 2015, on a criminal complaint charging him with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm on Feb. 24, 2015, in Chaves County, N.M. According to the complaint, the New Mexico State Police executed a search warrant on Mejia’s residence, workshop and vehicles where they seized approximately 29.53 grams of methamphetamine, $5,240.00 in cash, a pistol, ammunition, and drug paraphernalia. At the time, Mejia was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of a controlled substance and being a felon in possession of a firearm.
On June 11, 2015, Mejia pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. Mejia admitted that on Feb. 24, 2015, he possessed 29.53 grams of methamphetamine with intent to distribute. In his plea agreement, Mejia agreed to forfeit the weapon and ammunition seized during the investigation of the case.
This case was investigated by the Roswell office of the FBI, the Chaves County Sheriff’s Office and the New Mexico State Police. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Registered Securities Agent and Financial Advisor Sentenced to 88-Months in Prison for Defrauding at Least 24 Victims for More Than $1.1 MillionRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of SUSAN ELIZABETH WALKER, 51, to 88-months in prison. WALKER pleaded guilty last year to stealing more than $1.1 million from at least 24 victims who were clients of a financial planning company run by WALKER and her mother. She was sentenced today before Senior U.S. District Judge Michael Davis in U.S. District Court in Minneapolis.
“Susan Walker preyed upon people who trusted her, stealing repeatedly from vulnerable victims over many years,” said Assistant U.S. Attorney Timothy Rank. “She targeted those with modest retirement savings and used their money to satisfy her own greed. Despite her attempts to cover her crimes, they were uncovered by the excellent work of the IRS, FBI and the Fraud Bureau of the Minnesota Department of Commerce. Although Walker’s victims will likely never be made financially whole, the sentence handed down today by the Court is both appropriate and fair, and gives some solace to the people she betrayed.”
“Walker stole her clients’ life savings by abusing her position of trust,” said Minnesota Commerce Commissioner Mike Rothman. “Many of Walker’s victims were seniors who counted on her to manage their accounts responsibly, but instead she diverted their hard-earned savings to finance her own lavish lifestyle. The Commerce Department, and in this case the Commerce Fraud Bureau, is working closely with prosecutors and other law enforcement agencies to stop financial crimes.”
“People rely on the advice and trust the services of their financial advisor to make life decisions. They expect them to be honest and trustworthy,” said Shea Jones, Special Agent in Charge of the IRS Criminal Investigation, St. Paul Field Office. “Ms. Walker violated this expectation, and stole from her clients for her own personal gain. Let this sentence serve as a deterrent to those who may contemplate similar fraudulent actions.”
According to the defendant’s guilty plea and documents filed in court, from October 2008 until March 2013, WALKER provided financial planning services to several clients through her affiliation with Ameriprise Financial Inc. She was a securities agent registered with the Minnesota Department of Commerce, and a financial advisor registered with the Financial Industry Regulatory Authority (FINRA). WALKER stole from her clients by misusing her access to several victim retirement accounts and causing checks to be drawn from victim accounts and deposited into accounts that she controlled.
According to documents filed in court and statements made on the record in court, WALKER also opened investment brokerage accounts in her own name, and in the names of several victim-clients without their knowledge or authorization, which she used to conceal money stolen from other clients. She caused money to be withdrawn from retirement accounts belonging to clients and deposited in those brokerage accounts, which she took for her own personal use. WALKER used the money she stole to pay for, among other things, private school tuition, salon appointments, vehicles and for her own expensive vacation travel.
According to her guilty plea, in addition to stealing from her clients, WALKER also failed to report any of the funds obtained through fraud on her tax returns. The total tax loss on her unreported income is approximately $325,000.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, the Fraud Bureau of the Minnesota Department of Commerce and the FBI, with significant assistance from Ameriprise Financial, Inc, and the Office of the Minnesota Attorney General.
This case was prosecuted by Assistant U.S. Attorney Timothy Rank.
Defendant Information:
SUSAN ELIZABETH WALKER, 51
Plymouth, Minn.
Convicted:
- Mail Fraud, 1 count
- Tax Evasion, 1 count
Sentenced:
- 88 months in prison
- Three years supervised release
- $978,950.51 restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Quincy Man Sentenced for $3.1 Million Forex Investment FraudRead the Press Release
BOSTON – A Quincy man was sentenced to more than four years in prison today in U.S. District Court in Boston in connection with his scheme in to defraud $3.1 million from sixty-five individuals.
Marcellus Lopes Lee, 47, was sentenced by U.S. District Court Judge Indira Talwani to 57 months in prison and three years of supervised release. Judge Talwani also ordered Lee to pay restitution in the amount of $3,159,632, and ordered that his Quincy home, which he purchased with fraud proceeds, be forfeited. In August 2015, Lee pleaded guilty to 16 counts of wire fraud and six counts of money laundering.
Lee owned and operated Taurus Global Markets, Ltd. (TGM), an entity which Lee held out as a company that engaged in foreign currency trading (forex) on behalf of investors. Lee defrauded investors by convincing them to wire funds to TGM’s Belize bank account for the purpose of trading in the highly-risky forex market. Lee, however, did not trade the investor money and instead used it for his personal expenses. Although TGM’s website represented that it had staff, management, and a computer network “distributed all across the world,” TGM, in fact, had no employees and Lee operated it by himself, primarily from his residence in Quincy. Lee also sent investors what purported to be account documents reflecting that their money was invested in the forex market. Eventually, most investors were told that most or all of their money had been lost in forex trading when, in reality, Lee had simply spent it.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Queens Man Sentenced to 12.5 Years for Sexually Abusing 3 Minor Girls at Fort Hamilton Army BaseRead the Press Release
Earlier today, in federal court in Brooklyn, Fausto Bonifaz was sentenced to 151 months’ imprisonment, to be followed by 20 years of supervised release, for coercing and enticing three minors, ages 12 and 13, to engage in sexual activity. As part of the sentence, the defendant will be required to register as a sex offender. Bonifaz pled guilty in March 2015.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
Bonifaz began to sexually abuse the victims in 2009, when they were 12 and 13 years old. Over the course of the next year, he sexually assaulted one of the victims on a weekly basis at her home at the Fort Hamilton Army base, which he admitted at the time of his guilty plea and at sentencing. At sentencing, the government presented evidence that Bonifaz also abused two other minor victims, again at the Fort Hamilton Army base.
In announcing the sentence, Mr. Capers expressed his grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
The sentencing proceeding took place before Sr. United States District Judge Raymond J. Dearie.
The government’s case is being prosecuted by Assistant United States Attorney Tiana Demas.
This case was brought as part of Project Safe Childhood, a nationwide initiative to protect children by combatting the sexual exploitation and abuse of minors. Led by United States Attorneys’ Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The Defendant:
Name: FAUSTO BONIFAZ
Age: 40
Queens, New YorkE.D.N.Y. Docket No. 14-575 (RJD)
Providence Resident Pleads Guilty to Participating in Hobbs Act Robbery ConspiraciesRead the Press Release
PROVIDENCE, R.I. – Allen Prout, 43, of Providence, pleaded guilty in federal court in Providence to two counts of conspiracy to commit Hobbs Act robbery, and one count each of possession of a firearm in furtherance of a crime of violence and being a felon in possession of a firearm, admitting to the court that he participated in two separate Hobbs Act robbery conspiracies.
Appearing before U.S. District Court Judge John J. McConnell, Jr., on Thursday, Prout admitted to the court that on June 2, 2014, he and his co-conspirator took possession of firearms they intended to use to commit a home invasion at a drug stash house in Providence, where they believed two kilos of heroin and a substantial amount of cash were being stored. Prout and his co-defendant, Emmett Blyden, 45, of Providence, were arrested after taking possession of the firearms delivered by an individual who was assisting ATF agents. Blyden pleaded guilty on September 22, 2015, to conspiracy to commit Hobbs Act robbery and being a felon in possession of a firearm.
Prout also admitted to the court that he participated in a conspiracy in September 2012 to rob an individual at gun point of money the victim intended to use to purchase a significant quantity of oxycodone pills. According to court records, Prout and his co-defendant, Kiplagatt Stewart, 41, of Providence, posed as drug dealers in order to gain access to the home of the victim. Instead of selling the victim oxycodone pills, Prout and Stewart robbed the victim at gunpoint of approximately $14,000 in cash.
Kiplagatt Stewart, 41, of Providence, was sentenced on October 22, 2015, to 84 months in federal prison. At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Stewart to serve 3 years supervised release upon completion of his prison term. Stewart pleaded guilty on June 17, 2015, to conspiracy to commit Hobbs Act robbery.
Prout’s guilty pleas and Stewart’s sentence are announced by United States Attorney Peter F. Neronha, West Warwick Police Chief Colonel Richard G. Silva and Daniel J. Kumor, Special Agent in Charge of the Boston field division of ATF.
Allen Prout is scheduled to be sentenced on February 2, 2016. Emmett Blyden is scheduled to be sentenced on January 5, 2016.
The cases are being prosecuted by Assistant U.S. Attorneys Milind M. Shah, with the assistance of First Assistant U.S. Attorney Stephen G. Dambruch and Assistant U.S. Attorney Adi Goldstein.
Providence Police and Rhode Island State Police assisted West Warwick Police and ATF in the investigation of these matters.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Patrick Air Force Base Staff Sergeant Arrested for Enticement of Minor for SexRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Staff Sergeant Thomas Allen Vaughn (33, Patrick Air Force Base, Florida) has been arrested and charged by criminal complaint for enticement of a minor for sex.
According to the complaint, between October 23, 2015, and October 28, 2105, Vaughn communicated by email and text message with and individual he believed was a 14-year-old female “child,” but who was actually an undercover law enforcement officer. During the communications, Vaughn solicited “naughty” pictures from the “child,” informed the “child” that his hobbies included kissing, foreplay, oral, teasing, and sex, and told the child about his genitalia. Subsequently, Vaughn made plans to meet the “child” at an agreed upon location, where he was arrested.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Air Force Office of Special Investigations. It will be prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Owner of Maryland Tax Business Admits to Filing False Tax ReturnsRead the Press Release
A Fort Washington, Maryland man pleaded guilty today to aiding in the preparation of false tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service’s (IRS) Criminal Investigation’s Washington, D.C. Field Office.
Vivencio P. Concepcion, 53, pleaded guilty before U.S. District Judge Paul W. Grimm. According to his plea agreement, Concepcion operated Money Concept Services, a tax return preparation business located in Fort Washington, Maryland. From January 2009 to April 2012, Concepcion prepared more than 24 false federal individual tax returns for more than nine taxpayers using inflated charitable contribution amounts; fictitious unreimbursed employee business expenses and fictitious business income and expenses. As a result, the client-taxpayers received either larger refunds than they were entitled to or a decrease in the amount of taxes due.
Concepcion admitted that his conduct resulted in a tax loss of between $211,666 and $400,000. Concepcion has agreed to the entry of an order requiring him to pay $211,666 in restitution.
Concepcion faces a statutory maximum sentence of three years in prison at his sentencing on Jan. 29, 2016 at 9:00 a.m..
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rosenstein commended the IRS-Criminal Investigation and thanked Assistant U.S. Attorney Lindsay Eyler Kaplan and Trial Attorney Christopher P. O’Donnell of the Tax Division, who are prosecuting the case.
Owner of Bodybuilding Drug Companies Admits to Selling Misbranded DrugsRead the Press Release
Greenbelt, Maryland – Gavin Burns Smith, age 45, of New Port Richey, Florida, pleaded guilty today to selling misbranded drugs with the intent to defraud, in connection with the sale to bodybuilders of peptides which were not approved by the FDA for human use.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office.
“FDA’s system for the review and evaluation of prescription drugs is in place to ensure that only safe and effective drugs reach U.S. consumers,” said Glen A. McElravy, Acting Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Office. “When individuals go outside that system, they place the health of consumers at risk “We will continue to bring to justice those who attempt to market drugs that have not been evaluated by FDA and do not meet FDA standards of protection.”
According to his plea agreement, from 2010 to April 2012, Smith owned and operated Precision Peptides, located in Lutz, Florida. From April 2012 to May 2015, Smith owned and operated DNA Peptides, located in New Port Richey, Florida. Smith placed advertisements on the companies’ websites and sold body-enhancing injectable drugs to individuals seeking to enhance their physiques. These drugs were not approved by the FDA for use in humans.
On August 22, 2012, law enforcement executed federal search warrants at Precision Peptides and DNA Peptides. At some time thereafter, Smith began operating DNA Peptides out of his residence and continuing to sell drugs using a different website to avoid detection by law enforcement.
Smith caused DNA Peptides and Precision websites to display numerous disclaimers stating that all products sold were for “research/laboratory use only.” Additionally, prior to purchasing the products from the website, each customer was asked to certify that he or she read the disclaimer that the “chemicals/materials for sale here are . . . not intended for human ingestion.” Smith used these disclaimers as a ruse to avoid FDA scrutiny. He advertised his products and website extensively in bodybuilding magazines and conventions. Smith hired professional bodybuilders to promote his products and to claim that they personally experienced results from taking certain products he sold. He also provided information to customers, via the company websites and Facebook pages, on how to self-administer drugs, including recommended dosages and placement of the injections, in order to best produce the desired bodily enhancements.
The drugs Smith sold included Growth Hormone Releasing Peptide-2, Growth Hormone Releasing Peptide-6, Melanotan II, Growth Hormone Releasing Hormone, Ipamorelin, Human Growth Hormone Fragment, Mechano Growth Factor, and Dehydroepiandrosterone, none of which the FDA has approved for use in humans.
On seven occasions from November 21, 2011 to March 12, 2015, Smith sold misbranded drugs to an undercover officer and shipped those drugs from Florida to locations in Laurel, Columbia and Beltsville, Maryland. None of the drug shipments included any directions for use of the products. Additionally, although the labels stated that the products were for research only, Smith intended that the products be consumed by humans.
Smith has agreed to the entry of an order requiring him to forfeit $2,102,684.06, the value of the misbranded drugs subject to seizure.
Smith faces a maximum sentence of three years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for January 26, 2016, at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FDA Office of Criminal Investigations for its work in the investigation and thanked Assistant U.S. Attorneys James A. Crowell IV and Kelly O'Connell Hayes, who are prosecuting the case.
Owner of Shuttered Louisville Microwave Popcorn Company Guilty of Bank FraudRead the Press Release
Louisville, Ky. – The owner of the shuttered Preston Farms Popcorn, LLC (Preston) pleaded guilty to bank fraud today, before Chief Judge Joseph H. McKinley, Jr., in U.S. District Court, for diverting buyers’ payments toward the operation of his business rather than towards the payment of his loan, announced U.S. Attorney John E. Kuhn, Jr.
Kermit W. Highfield, 43, of Louisville, pleaded guilty to a single count of bank fraud, stemming from a business loan from UPS Business Capital Credit (UPS) that was insured by the United States Export-Import Bank (Ex-Im Bank). This loan was an advance on payments due from Preston’s international buyers. Preston defaulted on the UPS loan, and the Ex-Im Bank reimbursed UPS, resulting in a loss of $110,678.74 to the Ex-Im Bank.
According to the plea agreement, between March 18, 2013 and May 30, 2013, Highfield executed a scheme to defraud UPS. Under the terms of the loan, Preston was required to instruct buyers of the product to transmit payments into a specific BB&T Bank account, and those funds were to be used to pay off the UPS loan. However, Highfield admitted to instructing Preston’s buyers to deposit payments into other bank accounts controlled by Highfield and Preston. The funds were diverted from UPS and used by Highfield to pay for Preston operating expenses.
Highfield faces a maximum penalty of 30 years in prison, a fine of $1,000,000 and a five year term of supervised release. Sentencing is scheduled for February 1, 2016, at 11am in Louisville.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by United States Export-Import Bank OIG in Washington, D.C.
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The Ex-Im Bank is the official export credit agency of the United States, and assists in financing the export of U.S. goods and services to international markets. Complaints and reports of waste, fraud, and abuse related to Ex-Im Bank programs and operations can be reported to the OIG hotline at 888-OIG-EXIM (888-644-3946) or via email at [email protected].
Over 21,000 Students to Take Pledge Against Gun ViolenceRead the Press Release
U.S. Attorney Kenneth A. Polite announced that on Wednesday, November 4, 2015, over 21,000 students in over 64 schools across Southeast Louisiana will participate in his Office’s second district-wide Student Pledge Against Gun Violence Day.
Middle and high school students will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children will make a simpler commitment, pledging that if they see a gun they will not touch it, they will assume that any gun they see might be loaded, and they will tell a teacher or a trusted adult.
In coordination with the Department of Justice’s Project Safe Neighborhoods program, the Student Pledge Against Gun Violence is a national program that recognizes the role that young people, through their own decisions, can play in reducing gun violence. This campaign against youth gun violence culminates each October in a Day of National Concern about Young People and Gun Violence. Students from around the country will join together in pledging to do their part to end gun violence. Over 10 million students nationwide have signed the pledge since its inception in 1996.
U.S. Attorney Polite stated that his Office began using the pledge during the 2013-14 school year. Because of the outstanding response from school leaders and students, the Office decided to expand the initiative district-wide to include all schools in all 13 parishes, including Assumption, Jefferson, Lafourche, Plaquemines, Orleans, St. Bernard, St. Charles, St. James, St. John the Baptist, St. Tammany, Tangipahoa, Terrebonne, and Washington. "Our Office is pleased to take this opportunity to reach out to students, engage in a dialogue about gun violence and the importance of making right choices, and encourage them to become peacemakers of our time," stated U.S. Attorney Polite.
In addition to providing the pledges, members of the U.S. Attorney’s Office and other state, local, and federal law enforcement agencies will serve as speakers at several schools to talk to students about what they can do to reduce gun violence in their communities.
Participating Schools include:
Alice Birney Elementary School (Jefferson Parish)
Andrew Jackson Middle School (St. Bernard Parish)
Annunciation Catholic School (Washington Parish)
Assumption High School (Assumption Parish)
Bayou L'Ourse Primary School (Assumption Parish)
C.F. Rowley Alternative School (St. Bernard Parish)
Chalmette Elementary School (St. Bernard Parish)
Chalmette High School 9th Grade Academy (St. Bernard Parish)
Davies Elementary School (St. Bernard Parish)
Dwight D. Eisenhower Academy of Global Studies (Orleans Parish)
Edward Hynes Charter School (Orleans Parish)
Eleanor McMain Secondary School (Orleans Parish)
Ella Dolhonde Elementary School (Jefferson Parish)
Fisher Middle-High School (Jefferson Parish)
Frederick Douglass Elementary School (Jefferson Parish)
Garyville Mt. Airy Math & Science Magnet School (St. John Parish)
Gentilly Terrace Charter School (Orleans Parish)
Gretna No. 2 Academy for Advanced Studies (Jefferson Parish)
Hazel Park - Hilda Knoff Elementary School (Jefferson Parish)
International High School of New Orleans (Orleans Parish)
J.C. Ellis School (Jefferson Parish)
KIPP Believe College Preparatory School (Orleans Parish)
KIPP Central City Academy (Orleans Parish)
KIPP McDonogh #15 Middle School (Orleans Parish)
KIPP Renaissance High School (Orleans Parish)
Lacache Middle School (Tangipahoa Parish)
Lacoste Elementary School (St. Bernard Parish)
Lafayette Academy Charter School (Orleans Parish)
Lake Area New Tech Early College High School (Orleans Parish)
Lake Forest Charter School (Orleans Parish)
Lake Pontchartrain Elementary School (St. John Parish)
LaPlace Elementary School (St. John Parish)
Leo Kerner Jr. Elementary School (Jefferson Parish)
Martin Behrman Charter Academy (Orleans Parish)
Mary McLeod Bethune Elementary (Orleans Parish)
McDonogh 26 Elementary School (Jefferson Parish)
Medard H. Nelson Charter School (Orleans Parish)
Mildred S. Harris Elementary (Jefferson Parish)
Ory Magnet Elementary School (St. John Parish)
Patrick F. Taylor Science & Technology Academy (Jefferson Parish)
Pierre A. Capdau Charter School (Orleans Parish)
Phoenix High School (Plaquemines Parish)
Pope John Paul II Catholic High School (St. Tammany Parish)
St. Augustine High School (Orleans Parish)
St. Benedict the Moor (Orleans Parish)
St. Bernard Middle School (St. Bernard Parish)
St. Catherine of Sienna (Jefferson Parish)
St. James Parish Gifted Center (St. James Parish)
St. Peter Claver Catholic School (Orleans Parish)
St. Scholastica Academy (St. Tammany Parish)
Science & Math Academy (St. James Parish)
Sixth Ward Elementary (St. James Parish)
Smith Elementary School (St. Bernard Parish)
South Thibodaux Elementary School (Lafourche Parish)
T. H. Harris Middle School (Jefferson Parish)
The Good Shepherd School (Orleans Parish)
Trist Middle School (St. Bernard Parish)
Vacherie Elementary School (St. James Parish)
Vic A. Pitre Elementary School (Jefferson Parish)
West St. John Elementary School (St. John Parish)
West St. John High School (St. John Parish)
Westbank Community (Jefferson Parish)
Wesley Ray Elementary (Washington Parish)
William Hart Elementary School (Jefferson Parish)
Participating Federal, State and Local Law Enforcement Agencies include:
Bureau of Alcohol, Tobacco, Firearms and Explosives
Federal Bureau of Investigation
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U.S. Attorney’s Office, Eastern District of Louisiana
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U.S. Secret Service
Operator of Northeastern Pennsylvania Investment Firm Sentenced to 11 Years for Two Million Dollar Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason A. Muskey, age 39, of Moosic, Pennsylvania was sentenced on Friday, October 30, 2015, to 11 years in federal prison by United States District Court Judge Malachy E. Mannion, for diverting approximately two million dollars from clients’ accounts at a financial services firm he owned and operated over a seven year period from 2007 to 2014. Muskey was immediately taken into custody and remanded to the Lackawanna County Prison as he awaits designation to a federal facility to serve his sentence.
According to United States Attorney Peter Smith, Muskey was charged in February 2015 with mail fraud, money laundering, and aggravated identity theft. As presented in court at the time of Muskey’s guilty plea and the sentencing hearing, the evidence showed that Muskey, through his firm, Muskey Financial Services, offered financial advice and investment services to clients.
After being entrusted with client funds, Muskey forged clients’ signatures to obtain funds from his clients’ investment accounts, deposited funds into his personal accounts, and used the money for his own personal benefit. Muskey falsely represented to clients that the funds were being used to better their investments. When clients requested a return or withdrawal of their funds, Muskey took funds from accounts of other clients and purchased cashier’s checks to pay the clients who requested withdrawal. Some of the diverted funds came from individual retirement accounts (IRA’s) of clients. Muskey also used multiple means of identification of his clients to gain access to their funds to carry out his scheme.
According to the United States Attorney’s Office, there were approximately 26 victims of Muskey’s scheme. Several of the victims spoke in court about how Muskey asked them to trust him and then ruined them financially. Several elderly victims spoke about how they worked and saved their entire lives with the hope of not having to rely on others for financial assistance, or to have the opportunity to provide for their grandchildren. All of the victims asked Judge Mannion to impose a severe sentence.
The Government was able to forfeit some of the proceeds of Muskey’s fraud scheme in the amount of approximately $50,000. Muskey was ordered to pay restitution in the amount of $2,664,616.
The investigation was conducted by the United States Secret Service with the assistance of the United States Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney Michelle L. Olshefski.
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Oakland Resident Sentenced to 30 Months in Prison in False Tax Refund SchemeRead the Press Release
OAKLAND – Kenneth Brown was sentenced to 30 months in prison for conspiracy to file false claims in a fraudulent tax refund scheme, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
Kenneth Brown, 50, of Oakland, pleaded guilty on July 23, 2015, to conspiracy to file false claims. According to the plea agreement, from April 2009 through June 2011, Kenneth Brown conspired with his daughter, Kenya Brown, to file false federal income tax returns with the IRS. The false tax returns that Kenneth Brown and Kenya Brown filed contained fictitious W-2 forms requesting refunds based on the fictitious W-2s. To carry out the scheme, the defendants asked the IRS to wire the fraudulent tax refunds onto pre-paid debit cards or bank accounts they controlled. For example, Kenneth Brown used his sister’s bank account to receive a fraudulent tax refund. He also listed the bank account number for a beauty supply business he partly owned. The defendants also directed that pre-paid debit cards associated with the fraudulent refunds be sent to addresses where they could access the mail. From 2009 through 2011, Brown obtained $167,152 in illegal proceeds.
The sentence was handed down by the Honorable Jon Tigar, U.S. District Judge. In addition to the prison term, Judge Tigar ordered Brown to a term of 3 years of supervised release and ordered him to pay restitution in the amount of $167,152. Brown will begin serving his sentence on January 4, 2016.
Assistant U.S. Attorney Thomas Newman is prosecuting these cases. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Norfolk Man Sentenced for Drug and Gun CrimesRead the Press Release
NORFOLK, Va. – Clinton Martez Alston, 27, of Norfolk, was sentenced today to 200 months in prison for possession with intent to distribute heroin and for possessing a gun as a convicted felon.
Alston pleaded guilty on June 30, 2015. According to court documents, on Aug. 5, 2014, Norfolk Police arrested Alston as he arrived at a location in Norfolk to sell heroin to a confidential informant. Norfolk Police searched Alston and the vehicle he was in and found a .45 caliber handgun, 87 capsules of heroin, and small amount cocaine and crack cocaine. Alston has prior felony convictions for robbery and carjacking.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney William D. Muhr prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-179.
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New York Man Sentenced to More Than 17 Years in Federal Prison for Sex Trafficking of MinorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that EDWARD THOMAS, also known as “Fire,” 41, of New York, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 210 months of imprisonment, followed by 10 years of supervised release, for sex trafficking of minors. THOMAS also was ordered to pay $28,700 in restitution.
According to the evidence introduced during his trial, in September 2012, THOMAS, a New York-based pimp, answered an Internet prostitution advertisement for a 17-year-old girl (“MV1”) in Oregon. Over the next month, THOMAS recruited and enticed MV1 to travel to New York to work for him. MV1 eventually agreed and traveled to New York with a second girl (“MV2”), who was 16 at the time, using bus tickets purchased by THOMAS. THOMAS discussed with both MV1 and MV2 that they would be prostituting for him in New York and Connecticut.
After MV1 and MV2 arrived in New York, THOMAS and the two minor girls went immediately to a hotel in Milford, Connecticut, where they met Kayla Walters, THOMAS’ co-defendant, and posted prostitution advertisements. THOMAS knew that MV1 and MV2 were under the age of 18. In Milford, MV1 and MV2 saw customers for commercial sex acts at the direction of THOMAS. While MV2 escaped from a hotel room window after several hours, MV1 continued to work for THOMAS for about a month, turning over all of the money she earned in prostitution to THOMAS. When MV1 attempted to leave, THOMAS forcibly restrained her. Ultimately, MV1 was recovered for the first time by the FBI and local police in Milford on November 8, 2012. Law enforcement seized nearly $4,000 in cash from THOMAS during the first recovery, along with several computers and cellular phones.
THOMAS recruited MV1 a second time in July 2013 and again paid for her travel from Oregon to the East Coast. After THOMAS sent Walters and MV1 to Connecticut to make money for him, the FBI and local police again recovered MV1 from a hotel in Milford.
“For more than a decade, this defendant made his living from the commercial sexual exploitation of women, including young girls,” said U.S. Attorney Daly. “He preyed on the vulnerabilities of two girls whom he lured across the country thousands of miles away from their families. This cruel victimization of defenseless young women – a form of modern day slavery – will not be tolerated. Prosecuting these offenses is a top priority for the Department of Justice. This significant sentence will protect society and future victims from this defendant, and sends a clear message that those who sexually exploit minors will be held accountable. We thank the FBI and the Milford and Stratford Police Departments for their excellent work in this investigation. We will continue to work closely with our law enforcement partners to rescue girls and young women from brutal environments and prosecute those who profit from this reprehensible and illegal conduct.”
THOMAS and Walters have been detained since their arrests on February 28, 2014.
On January 26, 2015, a jury found THOMAS guilty of one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor.
THOMAS’s criminal history includes a 2007 conviction in New Jersey for promoting prostitution with a child under the age of 18.
On November 10, 2014, Walters pleaded guilty to one count of conspiracy to commit sex trafficking of a minor. Her sentencing is scheduled for November 30, 2015.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Stratford and Milford Police Departments assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Sarala V. Nagala.
New Orleans Man Pleads Guilty to Failing to Register as Sex OffenderRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DONALD GEORGE BUTLER, JR., age 51, of New Orleans, pled guilty today to failing to register as sex offender.
According to court documents, in 1997, BUTLER was convicted of sexual battery in New Orleans, and as a result, was required to register as a sex offender for the rest of his life. After being released from prison in 2009, BUTLER moved to Texas without notifying the appropriate authorities. Consequently, in 2010, BUTLER was charged with, and pled guilty to, failing to register as a sex offender in the Western District of Texas. Upon his release from federal custody in about November 2012, BUTLER moved back to Louisiana without notifying law enforcement authorities in either Texas or Louisiana. BUTLER lived in Louisiana, without notifying any law enforcement authorities, until he was located by Inspectors with the United States Marshal’s Service in July 2014.
BUTLER faces up to ten years in prison and a $250,000 fine. U.S. District Judge Sarah S. Vance set sentencing for February 24, 2016.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Polite praised the work of the United States Marshal’s Service in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.