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Tuesday 15 September 2015
Announcement of the Second Chance OR Else (SCORE) Drug Market Intervention ProgramRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama, Mobile Police Department (MPD) Chief of Police James Barber, Health Officer for Mobile County, Bernard H. Eichold II, and community leaders from Mobile’s Campground neighborhood announce a ceremony to acknowledge the successful progress of the Second Chance OR Else (SCORE) Program participants. The ceremony will take place on September 17, 2015 at Mount Olive Missionary Baptist Church located at 409 Lexington Avenue in Mobile, Alabama at 6pm. Friends and family members of the SCORE Program participants, law enforcement, the community and the media are encouraged to attend.
The SCORE Program is a collaborative Drug Market Intervention Program (DMIP) of the US Attorney’s Office, MPD, Mobile County Health Department’s Fatherhood Initiative and community leaders from Mobile’s Campground community. The purpose of the SCORE Program is to make the community safer by providing a select few street or low-level non-violent drug dealers an opportunity to engage in an intensive community mentorship program where the participants are connected with social service providers, community leaders and area clergy, all of which can assist them in transitioning their behavior and lives away from a life of crime. Participation in the SCORE is one year. Next week’s event marks SCORE Program participants’ successful six month participation in the program.
US Attorney Brown and Chief Barber will be available for interviews at the conclusion of the ceremony on September 17th.
12 People Charged with Heroin Trafficking After Statewide Multi-Jurisdictional InvestigationsRead the Press Release
The Office of the United States Attorney for the District of Vermont and Vermont's federal, state, and local law enforcement officials today announced federal criminal charges against 12 individuals accused of trafficking heroin in Vermont. The charges resulted from three long-term investigations characterized by a high level of cooperation among federal, state, and local agencies. In total, the three investigations seized the equivalent of 20,000 bags of heroin with a street value of approximately $200,000.
United States Attorney Eric Miller praised the agencies that assisted in the investigations and arrests, which included the Drug Enforcement Administration (DEA), the Vermont State Police Drug Task Force, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol Tobacco and Firearms (ATF), Homeland Security Investigations (HSI), Customs and Border Protection (Plattsburgh Air Branch), the Burlington Police Department, the Rutland Police Department, and St. Johnsbury Police Department. Miller pointed to the recent criminal charges as examples of the cross-jurisdictional cooperation necessary to combat heroin trafficking in Vermont, saying, "We will continue to achieve these meaningful results only by sharing information, expertise, and personnel across federal, state and local agencies."
All of the charges announced today will be prosecuted by the United States Attorney’s Office’s Heroin Trafficking Team. First organized in January 2015, the Heroin Trafficking Team is an effort by the United States Attorney's Office to focus federal prosecutorial resources in a manner best designed to disrupt the flow of heroin into and within Vermont. The Team consists of four prosecutors, each of whom is assigned to one of the four quadrants of the State for purposes of initial charging decisions and information gathering. They conduct weekly conference calls with the officers and agents performing the on-the-ground police work in those quadrants. Together, the prosecutors, officers, and agents prioritize targets and discuss strategic and legal issues surrounding each investigation. The Team members also meet regularly to share information about their quadrants.
The United States Attorney’s Office has charged 87 defendants with heroin-related federal crimes in the first eight months 2015, compared to 56 defendants during that same period last year, an increase of nearly 60%. Those increases are directly attributable to the combined work of law enforcement officers and prosecutors.
State, federal, and local officials have made clear their commitment to continuing their high level of coordination in response to Vermont’s heroin crisis. “DEA is committed to investigating and dismantling Drug Trafficking Organizations (DTO), like those operating in Vermont,” said Special Agent in Charge Michael J. Ferguson. “DEA will aggressively pursue trafficking organizations or individuals who are coming from out of state to distribute illegal drugs -- in this case heroin and cocaine -- to areas of Vermont in order to profit and destroy people’s lives, and wreak havoc in our communities. This investigation would not have been a success without the continued commitment of our state and local law enforcement partners.”
Vermont Governor Peter Shumlin added, "I want to thank the United States Attorney’s Office and all of the state, federal, and local law enforcement officers who worked together to bring these individuals to justice. Their coordinated efforts to keep this poison out of Vermont are a key part in our battle against addiction. We're all in this one together - prosecutors, judges, law enforcement, health care providers, policy makers, and others. Everyone has a part to play as we work to find new and better ways to confront a problem affecting every state in America."
A brief summary of each investigation and the resulting allegations is provided below. Documents related to each investigation are attached to the electronic copy of this press release posted on the website of the United States Attorney’s Office.
The Allegations Regarding Miguel Zayas, Lamar Carter, and Others
On September 10, 2015, a federal grand jury returned a fourteen-count indictment charging eight people with a large-scale heroin and crack cocaine trafficking conspiracy based in Caledonia County. Miguel Zayas, Lamar Carter, Karen Schumann, Derek Dawson, Ryan Farnham, Thomas Newman, Taylor May, and one other not yet arrested, are charged with conspiring to distribute heroin and crack cocaine in Vermont from early 2014 through August of this year. In filings with the court, the government has alleged the following with respect to the defendants: The drug ring – which trafficked mainly in heroin – was supplied by Zayas, 30, of New Jersey City, New Jersey and, his partner, Lamar Carter, age 24, who is from Brattleboro and also has ties to New Jersey. The remaining six defendants named in the indictment are Vermonters who reside in Caledonia County and served as the local infrastructure for the Zayas-Carter heroin business. These local facilitators are Schumann, age 37, of St. Johnsbury; Dawson, age 25, of St. Johnsbury; Farnham, age 24, of St. Johnsbury; Newman, age 35, of Barnet; and May, age 19, of Lyndon, along with one other defendant who is still at large. Earlier this year, two other Vermont facilitators of the Zayas-Carter heroin business, Sue-Ann Christie, age 46, of St. Johnsbury, and Jacob Isham, age 28, of Lyndon were charged in separate indictments with distribution of heroin. Also yesterday, Lamar Carter’s mother, Jacobina Carter, 39, of Brattleboro was arrested for an unrelated heroin distribution she allegedly committed in Brattleboro earlier this year.
The Zayas-Carter investigation was a long-term multiagency effort spearheaded by the Vermont State Police Drug Task Force. Other agencies involved in the investigation include the FBI, HSI, and the St. Johnsbury Police Department. The Drug Task Force and FBI took the lead in conducting controlled buys and interviewing witnesses. The FBI and HSI played an instrumental role in obtaining federal search warrants for the targets’ cell phone coordinates and electronic devices, as well as for residences of local facilitator defendants in St. Johnsbury and Barnet, Vermont. The St. Johnsbury police department played a key role in assisting with execution of a search warrant at the St. Johnsbury residence of Karen Schumann, who is charged not only with the heroin conspiracy, but with making her residence available for drug use and distribution.
The United States Attorney’s Office emphasizes that the charges against the defendants are only accusations and the defendants are presumed innocent unless and until they are proven guilty.
The Allegations Regarding Michael Villanueava (aka “Unc”)
In January of this year Tyrone Dixon was found by the Department of Homeland Security in Vermont with approximately 80 grams of crack cocaine hidden inside a loaf of bread. In June, he pleaded guilty and admitted in Court to having that drug while working with a man known to Dixon as “Unc.”
In February of this year, the Vermont State police stopped a Vermont-registered jeep on the interstate and discovered approximately 600 bags of heroin in the center console. The vehicle was registered to Sarah Ellwood. Building on some of the intelligence developed from these two cases by the Vermont Drug Task Force and other agencies, in July of this year the DEA obtained warrants to search a hotel room registered in the name of Sarah Ellwood, in Williston, as well as the Ellwood residence in Saint Albans.
In connection with these operations, DEA found approximately 216 grams of heroin, and approximately 250 grams of crack cocaine, a handgun, and a significant amount of cash. The grand jury subsequently indicted John and Angela Hoffman and Dorsey Hunt with conspiracy to distribute crack cocaine and heroin. As alleged in court filings, the Hoffmans and Hunt admitted to working with and at the direction of “Unc” in connection with their drug distribution activities.
Earlier this month, following up on another tip, DEA obtained a warrant to search a hotel room in South Burlington. In connection with this operation in which Burlington and South Burlington Police participated, DEA found approximately 223 grams of heroin and 280 grams of crack cocaine, resulting in charges against three additional persons: Michael Villanueva (whose nickname is “Unc”), Sarah Ellwood, and Felicia Livingston.
The United States Attorney’s Office emphasizes that the charges against Villanueva, Ellwood, Livingston, Hunt, and Hoffman are only accusations and the defendants are presumed innocent unless and until they are proven guilty.
The Allegations Regarding Troy Barnes
Troy Barnes of Rutland was arrested on August 20, as law enforcement executed a warrant obtained by the Vermont Drug Task Force authorizing the search of Barnes’ Rutland residence. Police found approximately 200 grams of heroin – nearly half a pound -- at Barnes’ residence. They also found a loaded handgun in the same kitchen pantry where Barnes allegedly kept part of his stash. This operation was conducted by the Vermont Drug Task Force working closely with the DEA, the FBI, ATF, the Rutland Police Department and other agencies. On August 26, the grand jury in Rutland returned an indictment charging Barnes with possessing more than 100 grams of heroin with the intent to distribute it.
The United States Attorney’s Office emphasizes that the charges against Barnes are only accusations and he is presumed innocent unless and until he is proven guilty.
Monday 14 September 2015
Williamson County Woman Pleads Guilty to Escape OffenseRead the Press Release
On September 11, 2015, Latoya M. McDaniel, 29, of Marion, pled guilty to a one-count indictment charging Escape from Federal Custody, United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that McDaniel was serving a 78 month federal sentence for Conspiracy to Distribute Crack Cocaine. McDaniel was being housed through the Centerstone facility in Marion, Illinois. On April 6, 2015, McDaniel failed to return to Centerstone as required. McDaniel fled the area and was located and arrested by the United States Marshals Service in Missouri on June 23, 2015.
The escape offense carries a penalty of up to 5 years of federal prison, in addition to the sentence already being served, to be followed by 3 years’ supervised release, and a maximum fine of $250,000.
The investigation was conducted by the United States Marshals Service. The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Wilkes-Barre Man Pleads Guilty to Federal Heroin Trafficking OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wilkes-Barre man pleaded guilty today in United States District Court in Scranton, before United States District Judge Malachy E. Mannion, to a federal heroin trafficking charge.
According to United States Attorney Peter Smith, Larry Hayes, age 28, admitted to the charge of possession with intent to distribute heroin. Hayes and another defendant were indicted by a grand jury in June 2015.
The charges stem from an incident in which investigators served a search warrant at a residence located on Sullivan Street in Wilkes-Barre and seized heroin from a bedroom in which Hayes was sleeping. From another bedroom in which the co-defendant was sleeping, investigators seized an additional amount of heroin and two firearms.
The investigation was conducted by the Wilkes-Barre Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF).
The charges against the co-defendant, Disean Kendricks, are still pending.
The cases are being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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West Michigan Farmer, Leonard Arthur Kolberg, Jr., Sentenced to Prison for Defrauding Federal Farm Programs of More Than $500,000Read the Press Release
GRAND RAPIDS, MICHIGAN — Leonard Arthur "Lenny" Kolberg, Jr., 57, of Bangor, Michigan, was sentenced today to one year and one day in prison for defrauding federal farm programs of more than $500,000. U.S. District Judge Paul L. Maloney imposed the sentence.
In December 2009, Kolberg, who was a farmer and owner of Kolberg Farms, pledged a portion of his harvested corn in exchange for a $145,000 marketing assistance loan from the Farm Services Agency. Marketing assistance loans are designed to provide farmers with interim financing at harvest time to help them meet cash flow needs without having to sell their commodities when market prices are at their lowest. Kolberg defrauded the Farm Services Agency by lying about the amount of corn he pledged as security for the loan, and by selling the corn in the private market and keeping the proceeds, instead of paying off the loan. Kolberg hid some of his activity by selling the corn in other peoples’ names.
At the same time, Kolberg filed fraudulent crop insurance claims in connection with his 2009 harvest. He subsequently filed fraudulent crop insurance claims in connection with his 2013 and 2014 harvests. All told, Kolberg defrauded federal farm programs of $524,838.00.
U.S. Attorney Miles said that "protecting taxpayers and honest, hardworking farmers who rely on farm assistance programs is an important part of our mission. Individuals who defraud those programs should know that they will be prosecuted."
The case was investigated by the U.S. Department of Agriculture Office of Inspector General. It was prosecuted by Assistant U.S. Attorney Clay Stiffler.
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US v. City of Portland - Compliance Assessment ReportRead the Press Release
The United States has prepared the enclosed periodic compliance status assessment report (hereinafter, ‘Report’) in preparation for our September 14, 2015 meeting with the Albina Ministerial Alliance Coalition for Justice and Police Reform (AMAC) regarding the City of Portland’s (the City) progress in implementing the parties’ Settlement Agreement,
see Collaborative Agreement 15, Dec. 30, 2013, ECF No. 55-1. This Report also serves as a platform to respond to the Court’s order to "describe to the Court the progress being made toward achieving substantial compliance with all provisions of the Settlement Agreement and any obstacles or impediments toward that end." Order, July 30, 2015, ECF No. 99. We will provide a copy of this Report to the Court, the AMAC, and the Compliance Officer/Community Liaison (COCL), and we anticipate presenting a copy to the Community Oversight Advisory Board (COAB) at its October meeting. We also plan to post it on our public DOJ website. In addition to the comprehensive assessment required pursuant to paragraph 175 of the Settlement Agreement, see ECF No. 4-1 175, the United States may provide additional periodic compliance status assessment reports and technical assistance as we monitor the City’s compliance with the Settlement Agreement, pursuant to paragraph 167.
For the attached Report, we reviewed extensive documentation, particularly PPB’s quarterly self-assessment reports from the First Quarter of 2014 through the present. Each quarterly self-report referred to documentation that PPB believes supports its own assessment of compliance. References to "folders" herein are to the City’s individually-numbered electronic folders corresponding to the paragraph(s) of the Settlement Agreement that the documentation reportedly supports. This Report considers the information provided by the City as of August 28, 2015, up to and including the Quarterly Report for the Second Quarter of 2015 and supporting documentation. In addition to document review, we also consulted with our two expert consultants, conducted interviews of City employees, and made personal observations at City-sponsored meetings (such as the Community and Police Relations Council, Citizens Review Committee, Community Oversight and Advisory Board, Behavioral Health Unit Advisory Committee, and the Training Advisory Council).
As the City is aware, the Effective Date of the Settlement Agreement is August 29, 2014. During this past year, however, the DOJ and City have engaged in additional settlement negotiations regarding the City’s appeal of the Court’s order entering the Settlement Agreement, which was finally resolved on July 30, 2015, when the Court entered an amended Order. To the extent that we have not yet been able to engage in a full assessment of implementation of any particular area of the Settlement Agreement, we have so noted in our analysis.
This Report uses the following color-coded compliance status levels to indicate our current assessment of PPB’s progress in complying with each provision of the Settlement Agreement:
Blue: compliance rating pending or not measured. This level indicates that either the specific provision does not have a specific measurement to assess, or that the DOJ has not yet been able to fully assess compliance, either due to insufficient documentation provided for assessment, or because DOJ must complete additional analysis/observation of how the specific provision is being implemented.
Green: substantial compliance with an ongoing obligation. This level indicates that the City has implemented the specific provision as required by the Settlement Agreement, and that the City has an ongoing obligation to continue such action to remain in compliance.
Yellow: partial compliance with an ongoing obligation. This level indicates that while there has been progress made with implementation, specific areas need further attention in order to reach substantial compliance.
Red: non-compliance. This level indicates that we have recognized barriers to achieving implementation of the provision that must be addressed to achieve compliance.
The Parties have acknowledged that the systemic reforms required by the Settlement Agreement will take time to implement.
See, e.g., Settlement Agreement 178(a) (anticipating substantial compliance with all provisions by October 12, 2017). Our analysis and technical assistance provided with this Report is intended to both acknowledge the City’s accomplishments achieved thus far in the implementation of the Settlement Agreement and to advise the City on certain course corrections that will help achieve compliance.
As always, we appreciate the various City bureaus’ efforts and progress in implementing the terms of our Settlement Agreement and look forward to a continued cooperative relationship in achieving our mutual goal of sustained constitutional and effective policing in the City of Portland.
For a copy of the original cover letter as well as the full compliance report please see the attached .pdf document.
us_v._city_of_portland_-_compliance_assesment_report_and_cover_letter_-_september_10_2015.pdf (556.05 KB)
Two Plead Guilty in Conspiracy to Cash Stolen U.S. Treasury ChecksRead the Press Release
PROVIDENCE, R.I. – Brenda Canuelas, 39, and Jesus Rivera, 45, of Providence, pleaded guilty in U.S. District Court in Providence to conspiring with one another to cash between $81,463 and $107,006 worth of stolen United States Treasury checks, announced United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr. and Rafael Medina, Special Agent in Charge of the Northeast Area United States Postal Service Office of Inspector General (USPS-OIG).
Appearing before U.S. District Court Judge John J. McConnell, Jr., Canuelas and Rivera pleaded guilty to one count of conspiracy and one count of converting stolen U.S. Treasury checks. They are scheduled to be sentenced on December 15, 2015.
According to court documents and information presented to the court, in September 2014, USPS-OIG agents and detectives from the Providence Police Intelligence and Organized Crime Unit began investigating the circumstances surrounding a significant number of missing Treasury checks addressed to individuals in Rhode Island and nearby Massachusetts. The investigation determined that many individual bank accounts were being opened in the name on missing checks, usually in a slightly altered form, by individuals other than the true owner of the check. The stolen checks were deposited in the accounts in amounts ranging from a few thousand dollars to more than $10,000. The accounts were then drawn down by cash withdrawals from ATMs, the purchase of goods and services, or by the purchase of money orders. Most of the bank accounts were opened in Rhode Island.
According to court documents, USPS-OIG agents reviewed surveillance photographs and videos from area banks and retail stores and identified two individuals who repeatedly made deposits of stolen U.S. Treasury checks, made cash withdrawals and made purchases using funds from the stolen checks. USPS-OIG agents and Providence Police Intelligence and Organized Crime Unit detectives worked together to identify the individuals as Brenda Canuelas and Jesus Rivera.
The defendants were arrested on May 19, 2015.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
Federal agents from the Veterans Administration Office of Inspector General and the U.S. Treasury Office of Inspector General assisted agents from the United States Postal Service Office of Inspector General and detectives from the Providence Police Intelligence and Organized Crime Unit in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Mobile Phone Industry Executives Arrested in Multimillion-Dollar Consumer Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William P. Offord, the Special Agent-in-Charge of the Boston Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrests of DARCY WEDD and ERDOLO EROMO, the CEO and Senior Vice-President of Business Development, respectively, at a mobile aggregation company based in the United States (the “U.S. Mobile Aggregator”), for their participation in a scheme to charge mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages without the customers’ knowledge or consent – a practice known as “auto-subscribing.” EROMO was arrested this morning in California, and is expected to be presented today in federal court in Los Angeles before United States Magistrate Judge John E. McDermott. WEDD was arrested this afternoon in New York, and is expected to be presented today in federal court in New York before United States Magistrate Judge Ronald L. Ellis. Also named in the Indictment were CHRISTOPHER GOFF, MICHAEL PEARSE, YONGCHAO LIU, a/k/a “Kevin Liu,” and YONG JASON LEE, a/k/a “Jason Lee,” all of whom were previously charged in a criminal complaint for their respective roles in the scheme.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Darcy Wedd, Erdolo Eromo and their co-conspirators engaged in a practice known as ‘auto-subscribing,’ forcing mobile phone users to pay charges for unsolicited and unwanted text messaging services, including horoscopes and celebrity gossip. Although the text messages were often trivial, what the defendants allegedly did was far from a joking matter. Their criminal scheme allegedly fleeced hundreds of thousands of everyday customers from around the country out of millions of dollars.”
IRS Special Agent-in-Charge William Offord said: “Criminals rely more and more on technology to facilitate their fraud schemes. Those considering this type of cybercrime should take note: “auto-subscribing” scams could mean “auto-arrest,” conviction and jail time.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “As alleged, the defendants and their co-conspirators profited in the sum of tens of millions of dollars from the scheme to charge mobile phone customers monthly fees for unsolicited text messages. Consumer fraud like this can have devastating impacts on consumers, businesses and the integrity of the mobile phone industry.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:[1]
The Auto-Subscription Scheme
From in or about 2011, through in or about 2013, WEDD, EROMO, GOFF, PEARSE, LIU, LEE, and other co-conspirators engaged in a multimillion-dollar scheme to defraud consumers by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills, without the consumers’ knowledge or consent, through a practice known as “auto-subscribing.”
During the relevant time period, LEE and two other co-conspirators (“CC-1” and “CC-2”) worked for a company that offered premium text messaging services to mobile phone customers (the “Content Provider”). WEDD, EROMO, GOFF, and another co-conspirator (“CC-3”) worked for the U.S. Mobile Aggregator. PEARSE and LIU worked for a mobile aggregator based in Australia (the “Australian Mobile Aggregator”). Mobile aggregators compile, or “aggregate,” charges for premium text messaging services – such as monthly horoscopes, celebrity gossip, and trivia facts – on consumers’ mobile phone bills.
In or about 2010, CC-1 decided to begin auto-subscribing mobile phone users to the Content Provider’s premium text messaging services in order to boost the Content Provider’s sagging revenues. CC-1 approached PEARSE and LIU and asked them to build a computer program that could spoof the required consumer authorizations for premium text messaging services – i.e., a program that could generate the text message correspondence that one would ordinarily see if a consumer was genuinely signing up to receive the services. PEARSE and LIU agreed to build the program (the “Auto-Subscription Platform”), which was operational by in or about the middle of 2011. In or about July 2011, CC-1 approached GOFF, who was the account manager for the Content Provider at the U.S. Mobile Aggregator, in order to obtain a large volume of mobile phone numbers to run through the Auto-Subscription Platform. GOFF sent CC-1 hundreds of thousands of phone numbers, in exchange for payment, for the purpose of auto-subscribing consumers.
In or about October 2011, CC-1 met with WEDD and told him, in sum and substance, that CC-1 wanted to auto-subscribe consumers through the U.S. Mobile Aggregator’s billing platform and needed additional phone numbers to do so. WEDD agreed to assist CC-1 in exchange for an up-front payment of approximately $100,000 and a percentage of the auto-subscription proceeds. WEDD further told CC-1, in sum and substance, that CC-3, who was the Vice President of Compliance and Consumer Protection for the U.S. Mobile Aggregator, would provide phone numbers to CC-1 and that all payments needed to go through CC-3. WEDD later received his portion of the payments from CC-1 via CC-3.
After CC-1 received phone numbers from WEDD and CC-3, CC-1 passed them on to LEE, the Chief Technology Officer of the Content Provider, who was responsible for verifying that the numbers were still valid and active, and for sorting and filtering the numbers to make it easier to run them through the Auto-Subscription Platform. After LEE performed these functions, CC-1 sent the numbers to PEARSE and LIU to be run through the Auto-Subscription Platform.
CC-1 also met with EROMO, at the direction of WEDD. EROMO told CC-1, in sum and substance, that EROMO knew about the plan to auto-subscribe consumers and requested $10,000 in cash to migrate each of CC-1’s premium text messaging services to a different billing platform at the U.S. Mobile Aggregator to facilitate the auto-subscriptions. EROMO and CC-3 also sold CC-1 and CC-2 so-called “blacklists” or “ninja lists” for approximately $10,000 each. The blacklists or ninja lists, which were lists of phone numbers that should not be auto-subscribed, included phone numbers belonging to executives at the mobile phone carriers and people at mobile industry compliance groups, who would likely initiate an audit if they noticed that they had been auto-subscribed to a premium text messaging service that they had not authorized. To pay EROMO for his assistance, CC-1 sent, or caused to be sent, several cash payments to EROMO’s residence through the mail.
The auto-subscription scheme affected hundreds of thousands of consumers and generated tens of millions of dollars in proceeds, which the defendants apportioned among themselves and were used to fund a lavish lifestyle of expensive vacations and gambling.
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WEDD, EROMO, GOFF, PEARSE, LIU, and LEE are each charged with one count of conspiracy to commit wire fraud and mail fraud, and one count of wire fraud, each of which carries a maximum term of 20 years in prison. WEDD, EROMO, and GOFF are also each charged with one count of conspiracy to commit money laundering, which carries a maximum term of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
GOFF and LEE were arrested on May 27, 2015. PEARSE and LIU reside in Australia and have not yet been arrested.
Mr. Bharara praised the investigative work of the IRS-CI and the FBI, and expressed his sincere gratitude to the Federal Trade Commission for their support and assistance with the investigation. He also thanked the U.S. Attorney’s Office for the Central District of California for their help in coordinating the arrests of the defendants.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.Assistant U.S. Attorneys Christian R. Everdell and Sarah E. Paul are in charge of the prosecution.Assistant U.S. Attorney Edward B. Diskant of the Office’s Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Harrison County, WV men sentenced for unlawful possession of firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Wade Highland, 45, of Lost Creek, West Virginia, and Darius Henning, 24, of Clarksburg, were sentenced today in federal court for unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Highland was sentenced today to 57 months in prison. He was previously convicted in February 2009 of “Grand Larceny” in the Circuit Court of Harrison County, West Virginia. As a result of the conviction, he is prohibited from possessing firearms. In August 2014, Highland was discovered in unlawful possession of thirteen firearms. He pled guilty in May 2015 to one count of Felon in Possession of a Firearm.” The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Henning was previously convicted in January 2011 of “First Degree Robbery” in the Circuit Court of Harrison County, West Virginia. As a result of that conviction, he is prohibited from possessing firearms. He was discovered in January 2015 in possession of a stolen .45 caliber pistol in Harrison County, West Virginia. He pled guilty in May 2015 to one count of “Felon in Possession of Firearm” and one count of “Possession of Stolen Firearm.” He was sentenced today to 63 months in prison on each count. These sentences will run concurrently for a total of 63 months of incarceration. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
Assistant U.S. Attorney Zelda Wesley prosecuted Highland and Wesley and former Assistant U.S. Attorney Shawn Morgan prosecuted Henning on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Twenty-Eight South Florida Residents Sentenced in Marriage and Immigration Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, announce that on August 24, 2015, Inaldo Chavez, 57, of Hialeah, Caridad Baez, 50, of Hialeah, and Masiel Puron, 33, of Marathon, were sentenced following their pleas of guilty to various immigration fraud charges. The conspiracy’s organizers, Chavez and Baez, were sentenced to 21 months’ imprisonment. Recruiter Puron was sentenced to 10 months’ imprisonment. The other defendants, Elides Rodriguez Vallejo, 42, of Marathon, Claudio Catapano, 49, of Argentina, Naile Yubero Carrasco, 30, of Hialeah, Enrique Giglio, 32, of Venezuela, Duniesky Alvarez Perez, 26, of Homestead, Angela Cuellar Velandia, 29, of Colombia, Marcos Vila, 25, of Homestead, Olena Pokotiuk, 27, of Ukraine, Dayana Trigueiro, 21, of Homestead, Vladimir Popa, 28, of Moldova, Yinet Hernandez Martinez, 31, of Weston, Daylin Ramirez Pereira, 24, of Marathon, Igor Singereanu, 29, of Moldova, Jennifer Gutierrez, 22, of Marathon, Serghei Serdiuc, 27, of Moldova, Suset Nodarse Gonzalez, 23, of Coral Gables, Eldar Ben Atar, 28, of Israel, Kassandra Perdomo, 21, of Miami, Efrain Basaldella Landa, 24, of Venezuela, Elio Martinez Alan, 44, of Hialeah, Maria Pinto Camacho, 48, of Venezuela, Jenny Gonzalez, 24, of Miami, and Ido Sharir, 25, of Israel, were sentenced in June following their pleas of guilty to various immigration fraud charges. They received varying sentences. One other individual charged in the indictment remains as a fugitive, Camilo Benavides Prieto, 30, of Colombia.
According to court documents, between May 2011 and February 2014, organizers, Chavez and Baez, and recruiters, including Puron, arranged for United States citizens and lawful permanent residents to enter into fraudulent marriages with aliens for the purpose of evading the immigration laws of the United States. Chavez, Baez, and Puron charged the aliens a fee to arrange the fraudulent marriages, notarized the fraudulent marriage licenses, completed the necessary immigration paperwork, and prepared the co-conspirators for their interviews with United States Citizenship and Immigration Services. The United States citizen and lawful permanent resident co-conspirators also charged the aliens a fee to enter into the fraudulent marriages. Aliens Catapano, Giglio, Velandia, Pokotiuk, Popa, Prieto, Singereanu, Serdiuc, Atar, Landa, Camacho, and Sharir, all paid a fee to enter into fraudulent marriages with United States citizens Gutierrez and Jenny Gonzalez, and lawful permanent residents Vallejo, Carrasco, Perez, Vila, Trigueiro, Martinez, Pereira, Suset Gonzalez, Perdomo, and Alan. These fraudulent marriages took place in the Southern District of Florida. In addition, during the time that they were arranging the fraudulent marriages, Chavez and Baez personally attempted to fraudulently obtain naturalization.
Mr. Ferrer commended the investigative efforts of ICE-HSI and U.S. Citizenship and Immigration Services, who provided significant and valuable support to this investigation. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
An indictment is only an accusation, and the defendants are presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tumalo Falls Vandalism Case ResolvedRead the Press Release
EUGENE, Ore. - On May 2, 2015, the railing at Tumalo Falls in Tumalo, Oregon, was vandalized. The U.S. Forest Service investigated the incident, issued a federal ticket for the violation, and referred the matter to the U.S. Attorney’s Office. A fine was assessed and restitution was paid to the U.S. Forest Service to repair the railing. The citation is now resolved. The details of the federal ticket are not public record and no further information will be provided.
Three plead guilty in Charleston to federal heroin chargesRead the Press Release
Charleston, W.Va. – Co-defendants Michael Richard, 30, Cassandra Washington, 24, both of Charleston, and James Harris, 23, of Detroit, Michigan, pled guilty today in federal court in Charleston to their individual roles in the sale of heroin from a home in in Elkview, West Virginia in April of 2014. Richard admitted that on April 10, 2014, he sold heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT) in exchange for $120.00.Washington and Harris admitted that when agents of the MDENT executed a search warrant at the Elkview residence a short time after the controlled buy, they were both inside the residence. After seizing additional amounts of heroin, digital scales and the money that law enforcement had used to make undercover buys, Harris admitted he transported the heroin from Detroit with another individual for sale from the Elkview residence by Richard and Washington. Washington also admitted that she intended to sell the heroin provided by Harris. All three face up to twenty years imprisonment and a $1,000,000.00 fine when sentenced on December 10, 2015.
The case was investigated by MDENT. AUSA John Frail is responsible for the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Three More Individuals Charged in Effort to Combat Prescription Drug AbuseRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that combined federal, state, and local efforts to combat prescription drug abuse has resulted in a federal grand jury indictment charging three individuals in a prescription drug and cocaine distribution conspiracy. The Indictment alleges that between October and December of 2013, the defendants conspired to distribute oxycodone and cocaine. If convicted, each defendant could face significant incarceration, fines, restitution, forfeiture, and supervised release following imprisonment.
The following individuals have been indicted:
ARMAD RASHAD BROWN, a.k.a. “Stacks,” age 36, of Baton Rouge, Louisiana, is charged with one count of conspiracy to distribute and possess with the intent to distribute a controlled substance, and five counts of distribution of a controlled substance.
BRIA HUNTSBERRY, age 23, of Baton Rouge, Louisiana, is charged with one count of conspiracy to distribute and possess with the intent to distribute a controlled substance and one count of distribution of a controlled substance.
TAMARA ACHORD, age 45, of Baton Rouge, Louisiana, is charged with one count of conspiracy to distribute and possess with the intent to distribute a controlled substance, one count of possession with the intent to distribute a controlled substance, and two counts of distribution of a controlled substance.
According to law enforcement officials, during the arrest of BROWN pursuant to the arrest warrant issued in this case, agents recovered approximately 416 Oxycodone pills, 175 grams of Ecstasy, and three firearms, including an AK-47 from BROWN’s residence.
United States Attorney Green stated: “Prescription drug misuse and addiction is a prevalent issue affecting Baton Rouge and the nation at large. In particular, studies have shown that prescription drugs account for a vast majority of drug overdoses. Prescription drug abuse and the related societal costs are a high priority of this office, and we are committed to reversing this deadly trend.”
DEA Assistant Special Agent in Charge Joseph Shepherd stated: “Prescription drugs continue to be an extremely serious problem, not just in Louisiana, but nationwide. DEA and our law enforcement partners will continue to investigate organizations that peddle drugs in our communities. Those persons who are involved in this illicit activity will be forced to bear the consequences of their actions.”
This ongoing investigation is being handled by the United States Attorney’s Office for the Middle District of Louisiana in conjunction with the Drug Enforcement Administration, the Baton Rouge Police Department, the East Baton Rouge Parish Sheriff’s Office, the Iberville Parish Sheriff’s Office, and the Louisiana State Police. It is being prosecuted by Assistant United States Attorney Jamie A. Flowers, Jr.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Texas Fugitive Pleads Guilty to Aggravated Identity Theft and Manufacturing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Joe Eugene Loving (46, Texas) has pleaded guilty to manufacturing counterfeit Federal Reserve notes, false representation of a Social Security number, and aggravated identity theft. He faces a maximum penalty of 25 years in federal prison for the counterfeit notes and false representation charges, to be followed by a consecutive mandatory minimum of 2 years’ imprisonment for the aggravated identity theft charge. A sentencing date has not yet been set.
According to the plea agreement, on February 2, 2015, the Green Cove Springs Police Department received information that two individuals, later identified as Loving and John Thomas Humphreys, were manufacturing counterfeit Federal Reserve notes in their hotel room at the Astoria Hotel in Clay County. The two men had active arrest warrants for parole violations in Texas and were subsequently arrested at the hotel by deputies from the Clay County Sheriff’s Office. Deputies found a counterfeit $100.00 note on Loving after his arrest.
During an interview with law enforcement, Humphreys and Loving stated, among other things, that they had been involved in a drug deal in Texas in December 2014 and had been on the run ever since. They estimated printing and passing at least $10,000.00 in counterfeit currency. In addition, they printed counterfeit checks using the identities of others.
During a subsequent search of the hotel room, agents located a box of personal identification information and financial documents belonging to other individuals, a printer/scanner/copier with counterfeit checks lying on top of it, counterfeit currency, and various computer media which had been used to manufacture the counterfeit currency.
A third individual, Paul Corbin Pennington, Jr., was also charged in this case for passing counterfeit currency. Pennington, a maintenance worker at the Astoria Hotel, loaned Loving and Humphreys his computer to watch movies. Loving and Humphreys used the computer to print counterfeit checks. Pennington confessed to law enforcement officers that he had passed counterfeit currency in Clay County.
Pennington previously pleaded guilty to one count of passing counterfeit currency. His sentencing hearing is scheduled for October 13, 2015. Humphreys previously pleaded guilty to manufacturing counterfeit Federal Reserve notes, false representation of a Social Security number, and aggravated identity theft. His sentencing hearing is scheduled for October 27, 2015.
This case was investigated by the Green Cove Springs Police Department, the Clay County Sheriff’s Office, and the United States Secret Service Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
St. Thomas Man Pleads Guilty to Possession of Firearm by Convicted FelonRead the Press Release
St. Thomas, USVI – On Monday, September 14, 2015, Lued Browne, 44, pleaded guilty in District Court on St. Thomas to Possession of a Firearm by a Convicted Felon, United States Attorney Ronald W. Sharpe announced. Sentencing is scheduled for January 4, 2016.
According to the plea agreement filed with the court, on May 22, 2015, Virgin Islands Police Department officers responded to a report that a vehicle was blocking the exit at Antilles School. Upon arrival at the scene, officers observed Browne, the sole occupant of the vehicle, sitting in the driver’s seat of the vehicle. The officers also observed a firearm between the driver’s seat and center console of the vehicle, which they immediately confiscated. Further investigation revealed that Browne has a prior felony conviction and could not legally possess a firearm in the Virgin Islands. Browne faces a maximum sentence of 10 years in prison and a $250,000 fine.
This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
St. Thomas Man Pleads Guilty to Firearm Conspiracy ChargeRead the Press Release
St. Thomas, USVI – On Monday, September 14, 2015, Ja’moi Khadeem Corraspe, 22, pleaded guilty in District Court on St. Thomas to Conspiracy to Ship Firearms with Obliterated Serial Numbers, United States Attorney Ronald W. Sharpe announced. Sentencing is scheduled for January 4, 2016.
According to the plea agreement filed with the court, between August 6, 2013 and October 7, 2013, Corraspe conspired with other individuals to unlawfully mail firearms with obliterated serial numbers from Jacksonville, Florida to St. Thomas. He directed the shipping of two firearms from Jacksonville to St. Thomas: a Smith and Wesson, Model SD40VE, .40 caliber pistol and a Glock, Model 20, 10mm pistol, both with obliterated serial numbers. Corraspe is not
a federal licensed firearms dealer and is not authorized to possess the two firearms in the District of the Virgin Islands. He faces a maximum sentence of five years in prison and a $250,000 fine.This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco,
Firearms and Explosives and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.Springfield Man Pleads Guilty to $1.1 Million Investment Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to a more than $1.1 million investment fraud scheme.
Christopher Hanson, 53, of Springfield, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a two-count information that charges him with wire fraud and money laundering. Hanson is the owner of Hanson Holdings, LLC.
By pleading guilty today, Hanson admitted that he was responsible for losses that totaled $1,134,500 for three victims of his investment fraud scheme.
Hanson offered the three victims what he described as “an investment opportunity.” Hanson told two of the victims that he would take their investment monies and purchase a collateralized mortgage obligation (CMO). Hanson claimed that a line of credit would be obtained against the CMO and both victim investors would receive their original investment plus a substantial dividend within months. Hanson told the third victim that he would purchase bonds and securities with his $100,000 investment. Hanson claimed this investment would generate a 250 percent return and that the victim investor would receive double his original investment within 40 weeks.
According to today’s plea agreement, financial records revealed that none of the monies obtained by Hanson or Hanson Holdings from these three investors were used to purchase securities or a CMO as Hanson had promised. Agents determined that Hanson authorized the release of the investors’ monies from his Scottrade Account, ETrade Account, or StockCross Account, into his personal bank accounts. The monies were then used to either pay other investors or pay expenses that were completely unrelated.
Under federal statutes, Hanson is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.
Sarasota Man Sentenced to Prison for Investment FraudRead the Press Release
Tampa, FL –U.S. District Judge Elizabeth A. Kovachevich has sentenced Gaeton Della Penna (62, Sarasota) to five years and ten months in federal prison for mail and wire fraud related to an investment scheme. As part of his sentence, the court ordered restitution for his victims and entered a money judgment of more than $2.8 million, representing the proceeds of fraud. Della Penna pleaded guilty on May 5, 2015.
According to court documents, Della Penna enticed investors to invest in his “investment funds” by guaranteeing them at least 5% yearly interest on their investment, with the principal to be returned at the end of an 18-month period, minus a nominal management/organizational fee paid to Della Penna, plus any trading profits. These representations were false. Rather than making profitable trades and protecting investors’ principal, Della Penna used a portion of the investors’ money for trading, lost money in his trades, and misappropriated the rest of the investors’ money by using it to repay other investors’ principal. False statements and “quarterly” interest checks were sent to the investors to entice them to invest more money. Della Penna also paid personal expenditures with the investors’ money, including mortgage payments on his waterfront residence.
This case was investigated by the United States Secret Service and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Rhode Island Man Sentenced to Five Years in Prison for Masterminding Bank Fraud Conspiracy, Identity Theft, Passing Counterfeit MoneyRead the Press Release
PROVIDENCE, R.I. – David Alcantara, 33, of Warwick, has been sentenced to 60 months in federal prison for masterminding an elaborate conspiracy to defraud two Rhode Island banks of nearly $600,000, by using stolen personal identifying information of several unsuspecting individuals, announced United States Attorney Peter F. Neronha and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
A federal court jury convicted Alcantara on May 1, 2015, of leading the conspiracy to defraud the banks and for leading a conspiracy to convert counterfeit $100 bills into real American dollars by making small retail purchases with bogus $100 bills and receiving cash back in Rhode Island, Massachusetts and Connecticut.
The jury convicted Alcantara of conspiracy to commit bank fraud, eight counts of aggravated identity theft and conspiracy to pass counterfeit money.
According to the government’s evidence presented at trial, in December 2009 and January 2010, Alcantara’s schemes resulted in the transfer of over $600,000 from bank accounts of legitimate bank customers into accounts fraudulently created with the use of several individuals’ stolen identities. Money was then withdrawn from the fraudulent accounts in the form of cashier’s checks.
In one scheme, Alcantara was responsible for the use of stolen identifying information belonging to a small business owner in Harrisburg, Pennsylvania, to affect in Rhode Island the transfer of $250,000 from the company’s business account into a newly opened fraudulent bank account. The account was opened using stolen identifying information of an individual who is deceased.
In a second scheme, Alcantara provided others with stolen identifying information of unsuspecting individuals and instructed them on how to use the information to establish fraudulent bank accounts at several branch offices of the same bank. Alcantara also provided them with stolen identifying information of legitimate owners of existing accounts at the same bank and instructed them to transfer funds from the legitimate accounts into the fraudulent accounts.
According to the government’s evidence, at the same time that Alcantara was affecting the bank fraud schemes, he reached out to an individual he thought could assist him in obtaining fraudulent Massachusetts drivers’ licenses. The individual he reached out to was in fact an undercover DEA agent. The DEA agent, working in conjunction with U.S. Secret Service Agents who were investigating Alcantara and the bank fraud schemes and the passing of bogus $100 bills, recorded several conversations he had with Alcantara as he attempted to secure the fraudulent IDs.
Alcantara has been detained since the date of his conviction.
The case was prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Lee H. Vilker.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Retired Sheriff’s Deputy Guilty of Firearm ChargeRead the Press Release
RICHMOND, Va. – Melvin Hinson, 56, of Kinsale, pleaded guilty today to the charge of possession of firearms with obliterated, removed, or altered serial numbers.
In a statement of facts filed with the plea agreement, Hinson, a retired Westmoreland County Sheriff’s deputy, admitted that starting before March 2014, and continuing through and including March 19, 2014, he received firearms from law enforcement agencies for the purpose of destroying the firearms for the agencies. But instead of destroying the firearms, Hinson removed the serial numbers from the firearms and sold or traded them. According to the statement of facts, there were eight firearms involved, including a sawed-off shotgun and a sawed-off rifle. All eight of the firearms entrusted to Hinson for destruction have been recovered by law enforcement.
Hinson, who was indicted by a federal grand jury on May 5, 2015, faces a maximum penalty of five years in prison when sentenced on Dec. 18, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and J.D. Durastanti, Assistant Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made the announcement after the plea was accepted by U.S. District Judge John A. Gibney. Assistant U.S. Attorney Olivia L. Norman is prosecuting 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. 3:15-cr-081.
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Pawtucket, R.I., Man Detained on Federal Firearm, Drug Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – Jose Gomez, 26, of Pawtucket, has been ordered detained in federal custody following an investigation into Gomez’s alleged trafficking of crack cocaine, including the alleged trading of firearms for crack cocaine, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The investigation included three undercover purchases of crack cocaine allegedly from Gomez and a court authorized search of Gomez’s residence. Inside Gomez’s residence, law enforcement located a one-year-old child and a two-year-old child unattended in a bedroom where they also allegedly discovered approximately four grams of crack cocaine on a window sill.
Gomez is detained on a criminal complaint charging him with three counts of distribution of crack cocaine, one count of possession with the intent to distribute crack cocaine, one count of being a felon in possession of a firearm and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and information presented to the court, it is alleged that on two occasions between August 31 and September 3, 2015, Gomez sold nearly three grams of crack cocaine for $200 in cash to an undercover ATF agent. Both transactions alleged occurred outside of Gomez’s Pawtucket residence.
According to court documents and information presented to the court, on September 8, 2015, the ATF undercover agent allegedly arranged with Gomez to trade two firearms for $200 in cash and a quantity of crack cocaine. The two met outside of Gomez’s residence two days later, and moments after Gomez allegedly exchanged $200 in cash and a plastic bag containing crack cocaine for the two firearms, a .380 caliber handgun and a 9mm handgun, agents detained Gomez.
According to information presented to the court, a court authorized search of Gomez’s residence moments after Gomez was detained allegedly resulted in the discovery of approximately four grams of crack cocaine on a digital scale stored on a window sill inside a bedroom where two unattended children, aged one and two, were located. The bedroom doorway was blocked to prevent the unattended children from leaving the room.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
ATF was assisted in the investigation of this matter by Pawtucket Police, Central Falls Police and the Special Investigations Unit of the Adult Correctional Institutions.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Pastor Sentenced for Filing False Tax ReturnsRead the Press Release
BOSTON – A former Worcester tax preparer was sentenced today for filing false tax returns with the IRS.
Nydia Elicier, 56, owner of Cox Elicier Tax, was sentenced by U.S. District Court Judge Timothy Hillman to two years of probation, the first three months of which she is restricted by location monitoring, and 100 hours of community service. Elicier is also prohibited from working as a tax preparer. In April 2015, Elicier was convicted following a four-day jury trial of four counts of aiding or assisting in the preparation of false tax returns.
In 2008, Elicier, who also served as a pastor in a Worcester congregation, inflated client refunds by falsifying deductions in filings with the IRS. Specifically, Elicier generated illegal refunds for clients by claiming deductions typically reserved for educators, false gifts to charity, overinflated medical expenses, and fraudulent unreimbursed employee expenses.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Nixa Woman Sentenced to 20 Years for Sexual Exploitation of Two ChildrenRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., woman was sentenced in federal court today for sexually exploiting two children to produce child pornography, which she distributed over the Internet.
Meagan Nell Bowman, 26, of Nixa, was sentenced by U.S. Chief District Judge Greg Kays to 20 years in federal prison without parole. The court also sentenced Bowman to supervised release for the rest of her life following incarceration.
On Dec. 11, 2014, Bowman pleaded guilty to all four counts of a federal indictment that charge her with two counts of sexually exploiting a minor and two counts of receiving and distributing child pornography.
Bowman’s estranged husband discovered photographs in her e-mail account of her sexual abuse of a 3-year-old child and a 2-year-old child. Bowman admitted that she was communicating over the Internet with two unknown men whom she met after posting an advertisement on Craigslist. She then used her cell phone to take photos of herself sexually abusing the 3-year-old child and sent them to the two men. She also admitted that 32 images of child pornography found on her cell phone were created by herself or received from the men she was interacting with over the Internet.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Nixa, Mo., Police 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."
Nigerian Man Sentenced to 12.5 Years in Prison for Operating Sophisticated $13 Million Internet Fraud SchemeRead the Press Release
PHOENIX – Today, Alex Sualim, 44, of Toronto, Canada, was sentenced by U.S. District Judge Susan R. Bolton to 12.5 years (150 months) in prison and ordered to pay over $13 million in restitution. Sualim previously pleaded guilty to conspiracy to commit wire fraud.
“We want to thank our law enforcement partners for their diligence during this multi-year investigation, which resulted in the successful identification, arrest, and prosecution of a foreign national who was using advanced technological tools to prey on American victims,” stated U.S. Attorney John S. Leonardo. “We remain committed to aggressively prosecuting those who would engage in fraud and cyber-crime.”
“The defendant operated a sophisticated, international fraud scheme that spanned four continents and swindled millions of dollars from more than a dozen victims. The lengthy prison sentence reflects the severity of his egregious crimes. IRS-CI will continue to work with its international law enforcement partners to investigate transnational organized crime,” stated IRS-Criminal Investigation (IRS-CI) Special Agent in Charge Ismael Nevarez Jr.
“The defendant wrongly believed being outside the United States gave him the freedom to carry out his criminal activities. The FBI remains committed to pursue these criminals wherever they may hide. This case is a fine example of the partnership the FBI has with our international law enforcement partners through our legal attaches, as well as with domestic law enforcement agencies-all working together to bring justice on behalf of our citizens.” stated FBI Special Agent in Charge Douglas Price.
Between 2009 and 2013, Sualim helped operate a fraud scheme that spanned four continents and duped more than a dozen victims out of more than $13 million. The scheme’s details were unusually sophisticated. First, Sualim would create a website for a Canadian company that purported to manufacture semiconductor chips. Next, Sualim would create passports, email accounts, and toll-free phone numbers for the Canadian company’s supposed employees. And next, Sualim would send millions of solicitation emails—on behalf of the supposed Canadian employees—to Americans whose email addresses he’d purchased from a spam vendor. These emails would explain that the Canadian company needed a product called “silicon germanium” to manufacture its semiconductor chips, that the company wished to enlist an American distributor to obtain the product from China, and that the Canadian company would cover the entire upfront cost of the product. If a victim expressed interest in this seemingly risk-free arrangement, he would be sent a series of additional emails accompanied by professional-looking purchase orders, proposed contracts, and other documents designed to give the transaction a veneer of legitimacy. Finally, on the eve of the first shipment from China, the victim would be told that the Canadian company’s financing had unexpectedly fallen through and that the American distributor needed to supply some of the upfront cost, after all.
If a victim agreed to this new arrangement, he’d be told how to wire his portion to an overseas bank account (typically located in Cyprus, Greece, Hong Kong, or China). Next, Sualim would arrange for a supposed employee of the Chinese manufacturer (who, in reality, was one of Sualim’s co-conspirators) to call or email the victim and explain that his company had just been purchased by a new parent company that required a larger minimum order. These victims were told they needed to wire more money to the overseas bank account in order to complete the first order. Many victims fell for this ruse and sent more money (sometimes several times). Finally, in the last iteration of the scheme, Sualim would arrange for large packages to be shipped to victims, who were told the packages contained the silicon germanium but were cautioned not to open the packages because silicon germanium is a highly-unstable material that can only be handled in a sterile laboratory environment. In fact, the packages were filled with worthless filler material. Nevertheless, some victims fell for the ruse, believed they were receiving the contracted-for product, and kept wiring more money to the designated overseas bank account in the hope of obtaining more shipments. Once victims discovered they were being scammed and demanded answers, their supposed Chinese and Canadian counterparts would simply stop responding to emails and phone calls.
During the operation of the scheme, Sualim—a college-educated electrical engineer who hails from Nigeria—lived in a multi-million dollar waterfront home in Toronto and had a fleet of luxury vehicles, including a Porsche, a Mercedes, and a Tesla that cost more than $100,000. Under his plea agreement, Sualim agreed to liquidate, for the benefit of victims, more than $2 million of Canadian assets.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, with assistance from the Royal Canadian Mounted Police. The prosecution was handled by Dominic Lanza and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-13-1515-PHX-SRB
RELEASE NUMBER: 2015-070_Sualim
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
New York Man Sentenced for Possession of Fraudulent Credit Cards and Aggravated Identity TheftRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that U.S. District Court Judge Robert D. Mariani sentenced Robert Cagle, age 50, Bronx, New York on Friday, September 11, 2015 to 48 months imprisonment. Cagle pled guilty in April 2015 to possession of fraudulent credit cards and aggravated identity theft.
According to U.S. Attorney Peter Smith, a Criminal Information was filed in March 2015 charging Cagle with access device fraud and aggravated identity theft. Allegedly, in April 2014, Pennsylvania State Police conducted a search of a disabled vehicle on Interstate 81. Cagle, a passenger in the vehicle, was found to be in possession of 71 fraudulent credit/debit cards, as well as equipment intended to be used for the manufacture of the counterfeit devices.
In addition to the prison term, Judge Mariani also ordered that Cagle be supervised by a probation officer for three years following his release from prison.
The case was investigated by the U.S. Secret Service and the Pennsylvania State Police and prosecuted by Assistant United States Attorney Michelle L. Olshefski.
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Navajo Man from Yatahey, N.M., Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – David Castillo, 38, an enrolled member of the Navajo Nation who resides in Yatahey, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a felony information charging him with two counts of aggravated sexual abuse of a child. Under the terms of his plea agreement, Castillo will be sentenced to 20 years in federal prison followed by a term of supervised release to be determined by the court. Castillo also will be required to register as a sex offender.
Castillo was arrested May 17, 2015, on a two-count indictment charging him with aggravated sexual abuse of a child under the age of 12 on a date between May 1, 2006 and Sept. 4, 2006, and again on a date between Dec. 20, 2006 and Jan. 8, 2007, in Indian Country in McKinley County, N.M.
During today’s change of plea hearing, Castillo pled guilty to a two-count felony information charging him with aggravated sexual abuse. In entering his guilty plea, Castillo admitted sexually assaulting the victim in the summer of 2006, when the victim was eight years old. He also admitted sexually assaulting the victim over the Christmas holiday in 2006, when the victim was nine years old. According to the plea agreement, Castillo sexually assaulted the victim five times during the periods of time and that the he committed the crimes on the Navajo Indian Reservation.
Castillo has been in federal custody since his arrest and remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney Sarah Mease.
The case was brought 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/.
Milwaukee Man Sentenced on Federal Gun Charge as an Armed Career CriminalRead the Press Release
Gregory J. Haanstad, Acting U.S. Attorney for the Eastern District of Wisconsin, announced that Justin King Nalls (age: 27) of Milwaukee, Wisconsin, appeared in federal court in Green Bay and was sentenced to 180 months in federal prison for being a felon in possession of a firearm. Based on his criminal record of violent felonies, Nalls qualified as an Armed Career Criminal under federal law which required that he be sentenced to not less than 15 years and up to a lifetime in prison. He was convicted in state court of two armed robberies in 2005 and a burglary in 2009.
Nalls was arrested in October of 2014 for his role in the armed robbery of a Kewaunee County tavern. Further investigation linked Nalls to an additional armed robbery in Sheboygan County and a violent robbery in the City of Milwaukee. Nalls and a female associate placed ads offering prostitution services online, and then robbed at gunpoint those who responded to the advertisements. A search of Nalls’ residence and vehicle yielded a loaded .44 revolver and ammunition for a .357 caliber firearm, both of which are illegal for Nalls or any felon to possess.
In pronouncing sentence, Chief U.S. District Court Judge William C. Griesbach noted the need to protect the community from future criminal acts, the need to send a strong message of deterrence to others, as well as the substantial penalties that the U.S. Congress ascribes to individuals like Nalls with violent felony convictions in their past.
The case was investigated by the Kewaunee County Sheriff’s Department, the City of Kewaunee Police Department, the Kewaunee County District Attorney’s Office, the Wisconsin Department of Justice - Division of Criminal Investigation, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Michigan Man Sentenced for Production of Child Pornographyand CyberstalkingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that James S. Allen, 38, of New Baltimore, MI, who was convicted of production of child pornography and cyberstalking, was sentenced to 262 months in prison and 10 years supervised release by U.S. District Judge Richard J. Arcara.
"This shocking case demonstrates how technology can make our children more vulnerable than ever to predators", said U.S. Attorney Hochul. "Parents, children, and in fact any who use internet-based media, need to know how to protect themselves from those inhabiting this virtual world."
Assistant U.S. Attorneys Aaron J. Mango and Scott S. Allen, who handled the case, stated that between April and August of 2012, the defendant utilized the internet and text messages to stalk, communicate with, and threaten 18 female victims in the Western District of New York, many of them minors, in an effort to obtain pornographic pictures of the minors. Allen contacted the victims and told them that he found naked pictures of them on the internet. The defendant then directed the victims to a specific website to view the pictures. In reality, the website was a front or a phishing site by which the defendant sought to surreptitiously obtain the victim’s private e-mail address and password.
Once the targeted victim input the requested information, the victim’s personal e-mail addresses and passwords went straight to the defendant via the internet. Allen then seized control of the victim’s e-mail accounts, contacted the victims, and threatened that if they did not engage in a Skype video chat with him, he would distribute naked photos of the victims over the internet. Once a victim and the defendant logged onto Skype (the defendant utilized the screen name “shhh.shhh,” Allen further demanded that the victims take their clothes off and engage in sexual conduct, with the additional threat that naked pictures of them would be sent out to all of Western New York if the girl did not comply. As a result of the defendant's repeated and sustained harassment of the victims, many victims suffered substantial emotional distress.
The sentencing is the culmination of an investigation by on the part of Special Agents of the Federal Bureau of Investigation’s Child Exploitation Task force which includes the Buffalo Police Department, the Cheektowaga Police Department, and the Niagara County Sheriff’s Office, and the Kenmore Police Department, under the direction of Chief Peter Breitnauer. Additional assistance was also provided by the FBI Forensic Laboratory in Quantico, Virginia, and the Western New York Regional Computer Forensic Laboratory.
Miami Resident Sentenced in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Kiesha Adderly Mitchell, 36, of Miami, was sentenced by U.S. District Court Judge Darrin P. Gayles to 48 months in prison, to be followed by three years of supervised release, for her participation in a stolen identity tax refund fraud scheme. Mitchell was also ordered to pay restitution in the amount of $219,721.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
The same sentence was imposed upon Mitchell’s co-defendant, Melissa Pearl Davis, 32, on August 20, 2015.
Defendants Mitchell and Davis each previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. As part of their pleas, each defendant agreed to pay restitution in the amount of $219,721.
According to court documents, in 2009, the defendants applied to the Internal Revenue Service (“IRS”) for Electronic Filing Identification Numbers (“EFINs”) in the name of corporate or fictitious entities they controlled, including K. Mitch Services, Inc. and Pebbles Tax & Notary Services. The defendants used those EFINs to submit false and fraudulent federal income tax returns to the IRS, using the names and Social Security numbers of other individuals, without the taxpayers’ authority. After the tax returns were received by the IRS, various financial institutions would authorize the defendants to load onto debit cards refund anticipation loans in the names of tax payers whose names and Social Security numbers were used to file the false and fraudulent tax returns. The defendants then withdrew the unlawfully obtained tax proceeds from the debit cards for their personal use and enrichment. The total intended loss from the defendants’ false and fraudulent filings of unauthorized income tax returns was over $400,000.
Mr. Ferrer commended the investigative efforts of the South Florida Identity Theft Tax Fraud Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Maple Heights man sentenced to 15 years in prison for firearms convictionRead the Press Release
A Maple Heights man was sentenced to more than 15 years in prison for illegally possessing firearms and counterfeit currency, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Donald Soranno, Special Agent in Charge of ATF's Columbus Field Division.
Daunte Byrd, 29, was sentenced to 182 months in prison after previously being found guilty of being a felon in possession of a firearm and possession of counterfeit currency.
Byrd was arrested in October 2014 and found to have $5,850 in counterfeit currency and a loaded 9 mm handgun. Byrd was prohibited from having firearms or ammunition because of multiple felony convictions, including several convictions involving violence and a firearm.
Byrd was convicted as part of Operation Samson II, an enhanced enforcement initiative targeting the criminal possession, use and sale of firearms in Greater Cleveland. The summer-long initiative organized around three operational groups. The first used undercover operations to investigate people known to criminally possess, use and sell firearms, as well as people possessing firearms while conducting drug activities. The second group used firearms trace data and ballistics information from the National Ballistics Information Network to pursue leads related to firearms that have been diverted from legal commerce to criminal use. The third group involved ATF Industry Operations conducting inspections at Cleveland-area federal firearms licensees to ensure that dealers are selling firearms in accordance with federal law and regulations.
Byrd told a confidential information in August 2014 that he could obtain and sell firearms, as well as grenades. Byrd also expressed interest in the robbery of a drug stash house. He also discussed selling fraudulent heroin and counterfeit currency, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cleveland Division of Police.
Mansfield Man Charged in Armed Robbery of Grandview BankRead the Press Release
DALLAS — A Mansfield, Texas, man has been charged in a federal criminal complaint with committing the takeover-style, armed robbery last week of the Grandview Bank in Grandview, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Michael Dwayne Bailey, 41, made his initial appearance this afternoon before U.S. Magistrate Judge David L. Horan, who ordered that he remain in custody pending a detention hearing set for Friday, September 18, 2015, at 2:00 p.m.
According to the complaint, on Thursday, September 10, 2015, at approximately noon, a man wearing a Texas Longhorns baseball cap, sunglasses, black leather jacket, dark glasses, and subsequently identified as the alleged robber, entered the Grandview Bank located at 105 East Criner Street. He approached a teller, who noticed he was wearing a dark bandana over the lower half of his face, pointed a handgun at the teller, and demanded money.
In fear for her life, the teller froze. The robber climbed on the counter and through the teller window and pointed the handgun directly at the teller’s face, and repeated his demand. Again, fearing for her life, the teller began withdrawing cash from her cash drawer, and the robber reached into the drawer and began grabbing money. The teller handed the money to the robber who took all of it and ran out of the bank. By this time, other bank employees had called 911. An observer saw the robber run to a red, two-door coupe with disabled veteran plates and notified law enforcement.
Acting on the tip, an officer with the Alvarado Police Officer caught up with the robber and activated his red and blue lights and siren, signaling the robber to stop, but the robber did not pull over. Instead, a high-speed pursuit ensued, and officers from several police agencies joined the Alvarado Police Department. They pursued the robber to the city of Mansfield, Texas, and during the pursuit, the robber drove on the wrong side of the road on I-35 and onto the shoulder before ultimately blowing a tire. Speeds even reached 150 miles per hour during the pursuit. The robber and a female passenger were both arrested.
At the time of his arrest, Bailey was wearing a Texas Longhorns ball cap, sunglasses, a black leather jacket and dark pants. The police also recovered the dark-colored bandanna. Knowing the robber was armed, officers searched the car and located a Smith & Wesson 9 millimeter handgun loaded with hollow-point ammunition.
The female passenger was identified as Bailey’s 19-year-old daughter. Officers located the exact amount of cash stolen in the robbery in her purse.
A federal complaint is a written statement of the essential facts of the offenses charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. If convicted of this offense, however, Bailey faces up to 25 years in federal prison and a $250,000 fine. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment.
The FBI, Alvarado Police Department and Mansfield Police Department are investigating. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay is prosecuting.
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Manhattan U.S. Attorney Announces Charges Against Florida Man for Attempting to Gain Unauthorized Access to the Computer Network of A Global Charitable OrganizationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York and Robert J. Sica, the Special Agent in Charge of the New York Office of the United States Secret Service (“USSS”), announced today the filing of a criminal complaint against TIMOTHY SEDLAK for attempting to gain unauthorized access to the computer network of a global charitable organization based in New York, New York (the “Organization”). SEDLAK was arrested in Ocoee, Florida in the evening of September 11, 2015. He will be presented later today in federal court in Orlando, Florida before United States Magistrate Judge Gregory J. Kelly.
According to the Complaint filed today in Manhattan federal court[1]:
From in or about June 2015, up to and including in or about July 2015, computers associated with two particular internet protocol addresses (the “IP Addresses”) made nearly four hundred thousand attempts to gain unauthorized access to the Organization’s computer network. As a result, numerous Organization employees experienced difficulty accessing their Organization email accounts, and were disrupted in their ability to conduct regular business functions. Both of the IP Addresses were subscribed to SEDLAK at SEDLAK’s residence in Florida (the “Sedlak Residence”)
In particular, between June 22, 2015 and July 8, 2015, from one of the IP Addresses, there were approximately 195,000 attempts to log into approximately twenty email accounts of the Organization. Between July 8, 2015 and July 10, 2015, from the other IP Address, there were an additional approximately 195,000 attempts to log into approximately six email accounts of the Organization. SEDLAK has never been employed by the Organization, and was not authorized to access any email accounts of the Organization.
On or about September 11, 2015, USSS agents executed a search warrant at the Sedlak Residence, from which they seized, among other things, (i) approximately 30 computers connected to the same internal network, which enabled each computer to communicate with the others (the “Sedlak Computers”); (ii) notes pertaining to the Organization, an executive of the Organization (“Individual-1”) and an individual who has been publicly affiliated with the Organization (“Individual-2”), including e-mail addresses, registrant information for certain website domain names, and certain IP address information associated with the Organization, Individual-1 and/or Individual-2; and (iii) lists of e-mail addresses and e-mail servers, many of which included the word “jihad.” The Sedlak Computers contained, among other things, a list of certain Organization employees’ email account usernames, and a “brute force” password-cracking tool. Such a tool is designed to launch a relentless barrage of potential passwords at an email account in an attempt to guess the account’s password.
On or about September 11, 2015, USSS agents interviewed SEDLAK, who claimed to be using the Sedlak Computers to conduct “research” into charitable organizations in the course of his work as a private investigator. In particular, SEDLAK claimed to be trying to determine if such organizations are unintentionally financing jihadist groups by sending, to charitable organizations in the Middle East, funds which are then seized by jihadist groups. When asked about notes pertaining to Individual-1 and Individual-2 found at the Sedlak Residence, SEDLAK claimed that he came across such information in his “research” into the financing of jihadist groups. SEDLAK claimed that he hoped to sell the information he found.
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SEDLAK, 42, of Ocoee, Florida, is charged with one count of attempted unauthorized access to a computer, which carries a maximum sentence of five years. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the U.S. Secret Service. Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Kristy J. Greenberg is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manager of IBEW Credit Union in Paducah, Guilty of Embezzling More Than $600,000Read the Press Release
Stolen money used to benefit herself and her friends and family
PADUCAH, Ky. – Debra C. Pyfrom, the former manager of the International Brotherhood of Electrical Workers (IBEW) Local 816 Federal Credit Union, pleaded guilty today in U.S. District Court, before Senior Judge Thomas B. Russell to a single charge of bank fraud, and she agreed to pay restitution in the amount of $600,520.16, announced U.S. Attorney John E. Kuhn, Jr.
“Bank fraud is a serious crime with a cost to all of us,” stated U.S. Attorney John Kuhn. “This defendant was entrusted with the hard-earned money and savings of IBEW credit union members, but she stole that money to spend on herself, her family and friends. This institution was insured, but the cost of the loss will be passed along to the rest of us. For that reason, my Office vigorously investigates and prosecutes fraud against financial institutions.”
Debra C. Pyfrom pleaded guilty to executing a scheme for an unknown period of time, up until she was arrested and terminated by her employer in July 2014. During that time, Pyfrom admitted to embezzling and stealing money from IBEW and its members for an approximate total loss exceeding $600,000. Pyfrom admitted to using the money for her personal benefit and for the benefit of her daughter, her boyfriend, friends, and family.
Pyfrom admitted to embezzling and stealing money through manipulation of the credit union accounts, false loan payments, misappropriation of cash, and from loans taken out in members names without their knowledge.
Pyfrom admitted to stealing money from IBEW credit union members’ accounts to cover her personal bills and those of her daughter, boyfriend and others, who had personal deposit accounts at the credit union. Pyfrom would cover these withdrawals with false, computer entry only deposits.
Further Pyfrom admitted to issuing loans to herself and to her daughter and posting false payments to conceal the fraud and make payments appear current on IBEW’s books.
Lastly, Pyfrom further admitted to taking out loans in the names of other IBEW account holders without their knowledge and using that loan money for her own benefit. Again, the balances on these loans were never repaid; rather the defendant would manipulate the entries in the IBEW books in order to falsely show that the loan payments were current.
If convicted of the charge at trial, Pyform could have been sentenced to 30 years in prison, a five year term of supervised release and fined a maximum of $1,000,000.
This case is being prosecuted by Assistant United States Attorney Nute A. Bonner and is being investigated by the McCracken County Sheriff’s Office and the Federal Bureau of Investigation.
Lawsuit Settled Against Heathcare Commons Inc. to Enforce Employment Rights of National Guard SergeantRead the Press Release
CAMDEN, N.J. – A settlement was reached today with Healthcare Commons Inc., resolving claims that the South Jersey company failed to re-employ a Delaware woman when she returned from her deployment with the National Guard, New Jersey U.S. Attorney Paul J. Fishman and Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, announced.
The civil lawsuit, filed in Camden federal court, alleged that Healthcare Commons, of Carneys Point, New Jersey, willfully violated the Uniformed Services Employment and Re-employment Rights Act of 1994 (USERRA), which protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations, and provides that service members shall not be discriminated against because of their military obligations.
“Cases like this one not only provide financial relief to soldiers returning from overseas but also ensure that employers fully understand their employment obligations to servicemembers,” Acting Associate Attorney General Stuart F. Delery said. “Through the Servicemembers and Veterans Initiative, the Department of Justice will continue using every tool at our disposal to protect the men and women who serve in our Armed Forces from unjust actions and illegal burdens.”
“The men and women who wear our nation’s uniform need to know that they will be protected from the types of injustice experienced by Ms. Tolliver,” Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division said. “The Department of Justice, through its enforcement of USERRA, strongly supports the right of service members to retain their rightful positions in the workforce both while they serve and after they complete their military service to our country.”
According to the complaint:
Megan Toliver, 32, of New Castle, Delaware, is a former employee of Healthcare Commons. She joined the U.S. Army National Guard in September 2004 and, most recently, had served as a sergeant, with honorable service as a mental health specialist. When Toliver returned from her military deployment in May 2014, she notified Healthcare Commons that she was seeking re-employment. Healthcare Commons willfully violated USERRA by not re-employing her as a mental health screener or in another comparable position.
Under the terms of a consent decree, which was filed today in federal court, Healthcare Commons agreed to pay $18,500 as back pay and liquidated damages to Toliver. HCI also agreed to adopt a new personnel policy that informs employees of their rights and obligations under USERRA and to provide USERRA training to all supervisory staff.
The case was referred by U.S. Department of Labor following an investigation by the department’s Veterans’ Employment and Training Service.
The plaintiff is represented by Assistant U.S. Attorney Michael E. Campion, U.S. Attorney’s Office, District of New Jersey, and Special Litigation Counsel Andrew Braniff, U.S. Department of Justice, Civil Rights Division, Employment Law Section.
In March 2015, the Attorney General created of the Service Members and Veterans Initiative, which is led by three dedicated career Justice Department attorneys with strong ties to the military community. They will further the Department’s existing efforts by coordinating and expanding enforcement, outreach, and training efforts on behalf of service members, veterans, and their families. The initiative will address the unique challenges that service members face while on active duty, that veterans face upon returning home, and that families face when a loved one is deployed.
Additional information about USERRA can be found on the U.S. Attorney’s Office website at www.justice.gov/usao-nj and the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Lawsuit Settled Against Healthcare Commons to Enforce Employment Rights of National Guard SergeantRead the Press Release
The Department of Justice has reached a settlement today with Healthcare Commons Inc., resolving claims that the South Jersey company failed to re-employ a Delaware woman when she returned from her deployment with the National Guard, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, and U.S. Attorney Paul J. Fishman of the District of New Jersey.
The civil lawsuit, filed in Camden federal court, alleged that Healthcare Commons, of Carneys Point, New Jersey, willfully violated the Uniformed Services Employment and Re-employment Rights Act of 1994 (USERRA), which protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations, and provides that service members shall not be discriminated against because of their military obligations.
“Cases like this one not only provide financial relief to soldiers returning from overseas but also ensure that employers fully understand their employment obligations to servicemembers,” said Acting Associate Attorney General Stuart F. Delery. “Through the Servicemembers and Veterans Initiative, the Department of Justice will continue using every tool at our disposal to protect the men and women who serve in our Armed Forces from unjust actions and illegal burdens.”
“The men and women who wear our nation’s uniform need to know that they will be protected from the types of injustice experienced by Ms. Tolliver,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Department of Justice, through its enforcement of USERRA, strongly supports the right of service members to retain their rightful positions in the workforce both while they serve and after they complete their military service to our country.”
According to the complaint, Megan Toliver, 32, of New Castle, Delaware, is a former employee of Healthcare Commons. She joined the U.S. Army National Guard in September 2004 and, most recently, had served as a sergeant, with honorable service as a mental health specialist. When Toliver returned from her military deployment in May 2014, she notified Healthcare Commons that she was seeking re-employment. Healthcare Commons willfully violated USERRA by not re-employing her as a mental health screener or in another comparable position.
Under the terms of a consent decree, which was filed today in federal court, Healthcare Commons agreed to pay $18,500 as back pay and liquidated damages to Toliver. Healthcare Commons also agreed to adopt a new personnel policy that informs employees of their rights and obligations under USERRA and to provide USERRA training to all supervisory staff.
The case was referred by the U.S. Department of Labor following an investigation by the department’s Veterans’ Employment and Training Service.
The plaintiff is represented by Special Litigation Counsel Andrew Braniff of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael E. Campion of the District of New Jersey.
In March 2015, the Attorney General created the Servicemembers and Veterans Initiative, which is led by three dedicated career Justice Department attorneys with strong ties to the military community. They will further the department’s existing efforts by coordinating and expanding enforcement, outreach and training efforts on behalf of service members, veterans and their families. The initiative will address the unique challenges that service members face while on active duty, that veterans face upon returning home, and that families face when a loved one is deployed.
Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as the U.S. Attorney’s Office website at www.justice.gov/usao-nj and on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Lamesa, Texas, Insurance Agent Sentenced to 15 Months in Federal Prison for Making False Statements to USDA Federal Crop Insurance Corp.Read the Press Release
LUBBOCK, Texas — A Lamesa, Texas, man, Joel Thomas Napper, who did business as Agwest Insurance Agency, was sentenced on Friday by U.S. District Judge Sam R. Cummings to serve 15 months in federal prison, fined $4,000, and ordered to pay $124,246 in restitution to the U.S. Department of Agriculture (USDA) Federal Crop Insurance Corporation (FCIC). The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Napper pleaded guilty in June 2015 to one count of making false statements to the USDA’s FCIC and Aiding and Abetting. He must surrender to the Bureau of Prisons on October 16, 2015.
According to documents filed in the case, Napper admitted that from approximately July 23, 2013, to August 26, 2013, he submitted false Acreage Reports (AR) on behalf of his policy holder clients, falsely representing that policy holders had timely signed the ARs enabling them to qualify for the FCIC program and receive federal crop insurance coverage, when, as Napper well know, the ARs were not timely signed and Napper forged them on behalf of his policyholder clients.
The investigation began in May 2014 after the USDA received information that Napper had made false statements by backdating ARs in order to provide multi-peril crop insurance coverage for his policyholders who were making claims on their 2013 cotton insurance policies. Napper admitted that he had forged signatures and backdated ARs for at least 10 policyholders. By transmitting the false statements, Napper caused a $124,246.00 sales commission paid to Agwest Insurance Agency.
The investigation was conducted by the USDA, Office of Inspector General and prosecuted by Assistant U.S. Attorney Paulina Jacobo.
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Kennebec County Men Plead Guilty to Pharmacy Robbery ChargesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Steven C. Chaput, 39, of Mount Vernon, Maine pleaded guilty today in U.S. District Court to pharmacy robberies charges. Rudger S. Ellis, 22, of Gardiner, Maine pleaded guilty to the same charges on August 12, 2015.
On February 7, 2015, Ellis entered the Rite Aid Pharmacy located on North Belfast Avenue in Augusta, Maine, wearing a hooded gray sweatshirt, blue and white athletic pants, and gloves and covering his face with a plaid cloth. Ellis approached the counter and demanded that the pharmacist give him oxycodone, oxycontin, and Ritalin. He told the pharmacy employees to hurry up. Ellis absconded with six bottles containing oxycodone.
On February 18, 2015, Ellis robbed the Rite Aid Pharmacy located on Spring Street in Gardiner, again wearing a hooded sweatshirt and gloves and covering his face with a plaid cloth. He approached the pharmacy counter and demanded oxycodone 30 milligram pills. He repeatedly told pharmacy employees to “hurry” and several times commanded: “now, now, now!” Ellis absconded with 11 bottles of oxycodone.
Chaput and Ellis had planned the pharmacy robberies together. Chaput was the getaway driver for both robberies, parking near each pharmacy and waiting as Ellis robbed them.
The defendants face up to 20 years in prison, a $250,000 fine and restitution. They will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Augusta and Gardiner Police Departments and the Federal Bureau of Investigation.
KCMO Man Sentenced for Internet Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for distributing child pornography over the Internet.
Christopher Michael Donovan, 39, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to six years in federal prison without parole.
On Oct. 15, 2014, Donovan pleaded guilty to distributing child pornography over the Internet.
On April 19, 2012, Donovan contacted an undercover FBI task force officer in an Internet chat room and sent images and movies of child pornography to the officer. Two of the images involved toddlers and one of the videos involved a drugged boy of approximately six years of age being molested.
Kansas City, Mo., law enforcement officers searched Donovan’s apartment and recovered a USB storage device that contained 40 movies of child pornography and 13 images of child pornography. These included videos of toddlers and other prepubescent boys. When interviewed by law enforcement officers, Donovan admitted to viewing and sharing child pornography over the Internet for several years. Donovan explained to officers that he downloaded child pornography from his computer onto the thumb drive; he no longer had his computer because it had been confiscated by drug dealers.
Donovan will be subject to federal and state sex offender registration requirements, which may apply throughout his life. Donovan must keep his registration current and notify the state sex offender registration agency of any changes to his name, place of residence, employment or student status, or other relevant information.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Kansas City, Mo., Police Department and the FBI.
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."
Jackson County Resident Sentenced on Methamphetamine OffenseRead the Press Release
On September 11, 2015, Amye L. Sandidge, 29, of Murphysboro, IL, was sentenced for her involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Sandidge, who had previously pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 84 months in federal prison, 3 years’ supervised release and fined $200. The offense occurred between 2010 and May 2014, in Jackson, Williamson, Union, and Franklin Counties. Evidence at the plea and sentencing hearings established that Sandidge was involved with others in the manufacture of methamphetamine. Sandidge purchased pseudoephedrine for her use in the manufacture of methamphetamine and also obtained pseudoephedrine from others. During the execution of a June 6, 2014, search warrant at Sandidge’s Murphysboro residence, agents located a methamphetamine lab. Sandidge was present at the residence along with a 17 year-old juvenile. In addition to the 17 year-old, evidence also established that a 15 year-old juvenile was involved with Sandidge in the manufacture and distribution of methamphetamine. At the sentencing hearing, the district court found that Sandidge was responsible for the illegal possession of 211 grams of pseudoephedrine. Sandidge also received a sentencing enhancement based on her use of juveniles in the offense. Eleven co-defendants have previously been sentenced for their involvement in the methamphetamine conspiracy. Two co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Hunting Show Host, Two Production Companies, Nine Others Charged in Noatak National Preserve Poaching InvestigationRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a cable TV hunting show host and nine other individuals were charged in Fairbanks U.S. District Court and other states for their participation in a multi-year poaching operation on the Noatak National Preserve. According to the charging documents, dozens of big game animals, including grizzly bear, moose, caribou and Dall sheep were illegally hunted and killed with some of the illegal kills ending up on a cable television show. Two production companies and another individual charged with filming and airing footage without a permit have also been cited by the National Park Service in connection with this investigation.
Charged in separate cases are Clark W. Dixon, 41, of Hazelhurst, Mississippi; Charles W. Dixon, 70, of Brookhaven; Mississippi, Randolph Goza, 48, of Wasilla, Alaska; Terry Goza, 71, of Hazelhurst, Mississipi; Clarence Michael Osborne, 53, of Madison, Mississippi; Shannon Dale Hooks, 54, of Mendenhall, Mississippi; Lance David Walker, 37, of Baton Rouge, Louisiana; Fulton Josef Wold, 41, of Nashville, Tennessee, and Robert Scott Viner, 40, of Ridgeland, Mississippi.
According to the charging documents, Clark W. Dixon, a featured host on the cable TV hunting show “The Syndicate,” was charged with two felony violations of the federal Lacey Act for his role in the illegal take of big game. The first charge against Clark W. Dixon alleges that in 2010 Dixon and Clarence Michael (“Mike”) Osborne, who is charged separately, illegally took a grizzly bear, for a fee, same-day airborne, and without Clark Dixon being a licensed and registered Alaska big game guide. In the second charge, Clark W. Dixon is charged with conducting an illegal outfitting operation on the Noatak National Preserve from 2009 to the present. Assisting Clark Dixon in the operation, as alleged, were Randolph Goza and Charles W. Dixon, both of whom are pilots.
The investigation as charged alleges that, at the time the violations were committed, Clark W. Dixon falsely claimed Alaska residency status while being a resident of the state of Mississippi. The charges against Dixon reflect that he lied about his residency status in order to take advantage of Alaska resident hunting privileges.
Charles W. Dixon, who is Clark W. Dixon’s father, is charged with two counts of violating the Lacey Act and one count of criminal forfeiture which seeks forfeiture of a STOLQuest SQ-4 aircraft. As a basis for forfeiture of the aircraft it is alleged that Charles W. Dixon used the aircraft in the illegal outfitting, guiding and transporting operation, in addition to using the aircraft to transport unlawfully taken game taken by Clark W. Dixon and others.
Randall (“Randy”) Goza, Terry Goza, Michael Osborne, Shannon Hooks, Lance Walker, and Fulton Wold are separately charged with the illegal take of various Alaska big game species, with all, except Mr. Hooks, hunting out of Clark Dixon’s illegal hunting camp within the Noatak National Preserve. Unlawfully taken species of game as alleged include grizzly bear, moose, caribou and Dall sheep, with all of those species charged as being taken through illegal hunting methods such as same-day airborne (Randy Goza, Terry Goza, Osborne) unpermitted and untagged takes, (Hooks, Wold, Walker, Osborne) and taking grizzly bear without a guide or tag, while permitting Clark Dixon or Charles Dixon to unlawfully claim the bear kills as their own (Osborne, Hooks, Walker). Robert Viner has been cited in Mississippi, through this investigation, for the illegal transport of an unlawfully taken brown bear. Mr. Viner has admitted guilt in connection with the charges, and has paid a $3250 fine.
It is further alleged that Clark Dixon used and broadcasted video footage from these illegal hunts on the Noatak National Preserve for use on the hunting show, “The Syndicate,” without obtaining a permit from the Noatak Preserve for conducting a commercial operation. Citations from the National Park Service for conducting filming operations on the Noatak Preserve without a permit have been issued to The Outdoor Syndicate, LLC, Reno, Nevada, its owner, Michael P. Dianda, and an editing studio, Zap Lab, Ltd, Reno, Nevada. The citations were issued because Clark W. Dixon and another professional videographer acquired footage for, and used the footage on The Syndicate, without obtaining a permit to commercially film on the Preserve.
All individuals in the Syndicate investigation charged today have been charged in separate cases. The following is an identification key referencing the uncharged individuals referred to in each case.
Clark Dixon case – Individuals: A: Clarence Osborne, B: Charles Dixon, C: Randolph Goza
Charles Dixon case – Individuals A: Clarence Osborne, B: Clark Dixon C: Randolph Goza
Randy Goza case—Individuals A: Clark Dixon, B: Clarence Osborne, C: Charles Dixon,
D: Terry Goza
Terry Goza case – Individuals A: Randolph Goza, B: Clark Dixon
Michael Osborne case – Individuals A: Clark Dixon, B: Randolph Goza, C: Charles Dixon
Shannon Hooks case – Individuals A: Clark Dixon, Uncharged B: Charles Dixon
Lance Walker case – Individuals A: Clark Dixon, B: Charles Dixon
Fulton Wold case – Individual A: Clark Dixon
Arraignment dates have not been set. The multi-state investigation continues.
Ms. Loeffler commends the work of the U.S. Fish and Wildlife Service, Division of Law Enforcement, and the National Park Service who jointly investigated this case in Alaska and elsewhere.
Harrold Man Sentenced for Attempted Murder of a Federal EmployeeRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Harrold, South Dakota, man convicted of Attempted Murder of a Federal Employee was sentenced on September 14, 2015, by U.S. District Judge Roberto A. Lange.
Brian Iron Boulder, a/k/a Brian Ironboulder, age 51, was sentenced to 216 months in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Iron Boulder was indicted by a federal grand jury on April 8, 2015. He pled guilty on June 23, 2015.
“The attempted murder of this federal employee in his own workplace was a disturbing crime, and the 18-year sentence handed down today demonstrates that justice was served,” said Seiler. “Everyone has a right to feel safe in their work environment, and when that is jeopardized by an act of violence, the consequences of the crime must send a strong message. That was accomplished in this case.”
The conviction stems from an incident on March 25, 2015, when Iron Boulder went to the Bureau of Indian Affairs (BIA) building in Fort Thompson to speak with Patrick Duffy, Superintendent of the Crow Creek Agency. Iron Boulder normally does not carry weapons with him, however on this day, he intentionally brought with him a pocket knife, with a four-inch blade. Iron Boulder purposely had the blade extended on the knife when he entered the building to speak with Superintendent Duffy, who was in a meeting, but agreed to speak with Iron Boulder. The two began to walk down the hallway, with Duffy in front, and Iron Boulder a few steps behind him. At this time, Iron Boulder took the knife out of his pocket, intentionally stabbed Duffy in the center of the back with the knife, and then fled the building. Iron Boulder admitted that he knowingly and intentionally stabbed Duffy in the back because of his role as the Superintendent of the Crow Creek agency.
Co-workers summoned law enforcement and an ambulance. Duffy was taken by ambulance, with the knife protruding from his back, to Mid-Dakota Hospital in Chamberlain. The stab wound penetrated the chest wall, with blood in the plural cavity, which required a chest tube after the knife was removed. Due to the extent of his injuries, Duffy was airlifted to Sanford Hospital in Sioux Falls and hospitalized until March 31, 2015. He continued to receive follow-up care and on April 14, 2015, Duffy was again taken to Sanford Hospital in Sioux Falls. He had a collapsed lung and required a second surgery. As a result of the attempted murder, Duffy received life-threatening injuries. He has since returned to work.
This case was investigated by the BIA, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Iron Boulder was immediately turned over to the custody of the U.S. Marshals Service.
Grape Street Crips Member Admits Conspiring to Sell HeroinRead the Press Release
NEWARK, N.J. – A member of the Grape Street Crips street gang today admitted conspiring to distribute heroin in and around Newark, U.S. Attorney Paul J. Fishman announced.
Sharod Brown, 30, of Newark, pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court an information charging him with one count of conspiring to distribute heroin.
According to documents filed in this case and statements made in court:
In May 2015, 50 alleged members and associates of the Grape Street Crips were charged over a three-week period in criminal complaints that alleged drug-trafficking, physical assaults, and witness intimidation. In addition to controlling drug-trafficking across large swaths of Newark, the Grape Street Crips allegedly engaged in acts of violence — including murder, shootings, aggravated assaults, and witness intimidation. Over the course of the entire investigation, 71 defendants have been charged with federal and state charges.
Brown admitted that, between November 2014 and May 2015, he conspired with others to distribute 10 bricks of heroin in and around the Pennington Court public-housing complex, located on Pennington Street in Newark, New Jersey.
The count of conspiring to distribute heroin to which Brown pleaded guilty is punishable by a maximum potential penalty of 20 years in prison. Sentencing is scheduled for Dec. 21, 2015.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to today’s guilty plea. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris, and Barry Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the federal criminal complaints and indictment against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel: Jason F. Orlando Esq., Jersey City, New Jersey
Franklin County Resident Pleads Guilty to Methamphetamine OffenseRead the Press Release
On September 11, 2015, Russell A. Stokes, 24, of Benton, pled guilty to one-count of conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that between 2013 and January 2015, Stokes was involved with co-defendants Michael Boyt, Jr., Jonathan Haslett, and others in the manufacture of methamphetamine. Stokes provided pseudoephedrine to multiple other persons to use to manufacture methamphetamine. The offense occurred in Perry, Randolph, Williamson, Jackson, and Franklin Counties. Stokes is currently being held without bond pending a December 29, 2015, sentencing hearing. The methamphetamine offense carries a maximum penalty of up to 20 years’ imprisonment, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Steeleville Police Department, Coulterville Police Department, Sparta Police Department, Perry County Drug Task Force, and Illinois State Police Methamphetamine Response Team. The Randolph County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Former Somerville and Cambridge Teacher Sentenced for Child PornographyRead the Press Release
BOSTON – Josh Wairi, 28, of Somerville, was sentenced today by U.S. District Court Judge William G. Young to 12 years in prison and eight years of supervised release. In May 2015, Wairi was convicted following a jury trial of transportation of child pornography and possession of child pornography. When released from prison, Wairi will be required to register as a sex offender.
Wairi, a former fifth and sixth grade teacher in the Somerville and the Cambridge Public Schools, used his email account to trade and receive images and videos of child pornography, and also uploaded images and videos of children being sexually exploited. Wairi possessed more than 27,000 images and over 530 videos of children engaged in sexually explicit conduct. Wairi admitted to viewing the images for sexual self-gratification.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Somerville Police Chief David Fallon; and Cambridge Police Commissioner Robert Haas, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Seth B. Orkand of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’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, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Members of the public who have questions, concerns, or information regarding this case should call (617) 748-3274.
Former Marshall University football running back pleads guilty to cyberstalkingRead the Press Release
HUNTINGTON, W.Va. – A 23-year old former Marshall University running back from Hollywood, Florida pleaded guilty today in federal court in Huntington to cyberstalking, announced United States Attorney Booth Goodwin. Kevin LaShawn Grooms, Jr. entered a guilty plea before Chief United States District Court Judge Robert C. Chambers.
Grooms admitted to using a cell phone beginning on March 24, 2015, and continuing to the early hours of the next day to send threatening messages to his ex-girlfriend. Grooms sent the threatening messages via Instagram and text. Grooms’ conduct placed his ex-girlfriend in reasonable fear of death or serious bodily injury, and caused her to suffer substantial emotional distress. An investigation conducted by the Federal of Bureau of Investigation, revealed that Grooms sent 158 messages to his ex-girlfriend within 8 hours of being released from the Western Regional Jail on March 24, 2015. Grooms was under a Domestic Violence Protection Order at the time he sent the threatening messages. The messages sent by Grooms consisted of photographs and attached messages that mocked the strength of domestic restraining orders, threatened his ex-girlfriend, and claiming his no-fear readiness to die.
Grooms met his ex-girlfriend in September of 2012, when they were both enrolled at Marshall University. Grooms admitted to engaging in a pattern of activity including stalking, threatening the use of a deadly weapon, harassing and assaulting his ex-girlfriend throughout their relationship.
The court scheduled a sentencing hearing for Grooms on December 14, 2015. He faces a prison sentence of two years, followed by three years of supervised release, and a maximum fine of $250,000.
U.S. Attorney Booth Goodwin stated, “We are committed to working closely with our law enforcement partners to identify and prosecute those who use modern technology to stalk, threaten, and harass. Technology is wonderful but we will not allow it to be used as a dangerous weapon.”
The Federal Bureau of Investigation and the Huntington Police Department conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
Former Humana Inc. Employees Sentenced for Taking Kickbacks Totaling $2 Million Dollars in an Insurance Sales Bribery SchemeRead the Press Release
Judge orders forfeiture and restitution totaling $1 million each
Both defendants sentenced to serve one year in prison
LOUISVILLE, Ky. – Former Humana Inc. regional sales director, Glen Allan Fine and former Humana Inc. sales manager, James E. Wenger, were sentenced September 10, 2015, by Senior Judge Charles R. Simpson III, in United States District Court, to one year and one day in prison, and ordered to pay $100,000 each in restitution and forfeit $900,000 each, for their roles in a racketeering and bribery scheme, connected with their former position, announced United States Attorney John E. Kuhn, Jr.
“Fine and Wenger unlawfully diverted millions of dollars in a kickback scheme that took advantage of their positions of trust and authority at Humana,” stated U.S. Attorney John Kuhn. “We simply cannot allow the integrity and efficiency of the health insurance market to be compromised by underhanded, back-door deals. The prison sentence and restitution order is a just outcome.”
“As this sentencing shows, it is increasingly important for all of us to remain vigilant against corporate fraud. As corporate insiders, Wenger and Fine abused their positions to obtain approximately $2,000,000 each in unlawful kickbacks. The FBI, and its law enforcement partners, will continue to work together to hold those who abuse their positions of trust accountable,” stated Howard Marshall, Special Agent in Charge, FBI Louisville.
“These individuals used their positions at a Medicare contractor to demand kickbacks from insurance agents who wanted to market Medicare plans,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This type of crime harms the integrity of the program and will not be tolerated.”
“The U.S. Postal Inspection Service will continue to strongly pursue its mission of investigating Mail Fraud crimes and protecting the US Postal Service and its customers,” stated Inspector in Charge, Dugan Wong, Pittsburg Division, U.S. Postal Inspection Service.
Co-defendants Fine, age 56, and Wenger, age 50, both of Louisville, previously pleaded guilty, in 2013, to a single count federal information charging them with taking kickbacks totaling over four million dollars while employed as part of Humana’s sales and marketing division known as the MarketPoint Organization.
According to their plea agreements, Fine admitted that in 2005, he, along with Wenger and others, met at a hotel in Florida to discuss sending insurance agents to Shep Cutler, one of the larger Managing General Agencies (MGA) and Dan McNerney, one of his business partners, and also a MGA. Fine and co-defendant Wenger, agreed to send insurance agents, who wanted to sell Humana Medicare Advantage and Prescription Drug Plan products, to Cutler and McNerney in exchange for Cutler sending payments to Fine and Wenger. The four agreed to split the override fees, and each would receive payments of 25%. Fine and Wenger agreed to set up fictitious business accounts in their wives' names. Fine and Wenger admitted to sending agents to Cutler and McNerney's MGAs, and acknowledged their wives did not provide any service in exchange for the money received from Cutler. Fine and Wenger were not authorized by Humana to enter into a kickback relationship with Cutler and McNerney. Both Fine and Wenger received approximately $2,000,000 each for their participation in the scheme. As a result of this kickback arrangement, Humana suffered a loss to its business, and had to pay legal and other investigative costs.
This case was prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and was investigated by the Federal Bureau of Investigation (FBI), the Department of Health and Human Services, Office of Inspector General, and the United States Postal Inspection Service, with assistance from Humana Inc.
Former FBI Special Agent Sentenced to Five Years in Bribery SchemeRead the Press Release
A former FBI special agent was sentenced today to serve five years in prison, to be served consecutively with a 10 year federal sentence imposed on him previously in the District of Utah, for accepting and soliciting bribes in exchange for providing internal law enforcement documents and other confidential information about a prominent citizen of Bangladesh for use by a political rival.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York and Inspector General Michael E. Horowitz of the Department of Justice made the announcement.
Robert Lustyik, 53, of Westchester County, New York, pleaded guilty on Dec. 23, 2014, to all five counts in the indictment against him, including conspiracy to engage in a bribery scheme, soliciting bribes by a public official, conspiracy to defraud the citizens of the United States and the FBI, theft of government property and unauthorized disclosure of a Suspicious Activity Report. Lustyik separately was sentenced on March 30, 2015, in the District of Utah to 10 years imprisonment for soliciting and accepting bribes in exchange for taking official actions in his capacity as an FBI special agent.
Lustyik was an FBI special agent who worked on the counterintelligence squad in the White Plains Resident Agency. Johannes Thaler was Lustyik’s friend and Rizve Ahmed, aka Caesar, was an acquaintance of Thaler. According to court records, from September 2011 through March 2012, Lustyik, Thaler and Ahmed engaged in a scheme in which Lustyik and Thaler solicited bribe payments from Ahmed in exchange for Lustyik’s agreement to provide confidential documents and information pertaining to a prominent citizen of Bangladesh whom Ahmed perceived to be a political rival, and whom Ahmed sought to locate and harm. Lustyik had access to the confidential documents and information through his position as an FBI special agent.
As part of the scheme, Lustyik and Thaler exchanged text messages, including messages about how to pressure Ahmed to pay them additional money in exchange for confidential information. For example, in late December 2011 and early January 2012, Lustyik texted Thaler, “we need to push [Ahmed] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” Thaler responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”
Thaler and Ahmed previously pleaded guilty to bribery and conspiracy to commit fraud and were sentenced on March 5, 2015, to serve 30 months and 42 months in prison, respectively.
The case was investigated by the Department of Justice’s Office of the Inspector General, and prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Benjamin Allee of the Southern District of New York.
Former FBI Special Agent Robert Lustyik Sentenced in White Plains Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT LUSTYIK was sentenced today in White Plains federal court by U.S. District Judge Vincent Briccetti to 5 years in prison, to be served consecutively with a ten year federal sentence imposed on him previously in the District of Utah. LUSTYIK was sentenced for his convictions arising out of a bribery scheme during which he sold confidential law enforcement information in exchange for cash and the promise of additional cash.
U.S. Attorney Preet Bharara said: “Decades of honest, hard work by thousands of FBI Special Agents dedicated to the pursuit of justice have earned the FBI a well-deserved reputation for public service and integrity. Robert Lustyik’s criminal conduct, driven by greed and corruption, displayed a disdain for the integrity for which the FBI stands. Today, he was held accountable for putting his own greedy self-interest above the interests of the public he served.”
According to the Complaint, the Indictment, court hearings, and today’s proceedings:
LUSTYIK was a Special Agent with the Federal Bureau of Investigation (“FBI”) who worked on the counterintelligence squad in the White Plains Resident Agency. Johannes Thaler was LUSTYIK’s friend, and Rizve Ahmed was an acquaintance of Thaler. From in or about September 2011 through March 2012, LUSTYIK, Thaler, and Ahmed engaged in a bribery scheme. As part of the scheme, LUSTYIK and Thaler solicited payments of money from Ahmed, in exchange for LUSTYIK’s agreement to provide internal, confidential documents and other confidential information to which LUSTYIK had access by virtue of his position as an FBI Special Agent. The documents and information pertained to a prominent citizen of Bangladesh (“Individual 1”). Ahmed perceived himself on the opposite side of a political rivalry with Individual 1. Ahmed sought, among other things, to obtain information about Individual 1, to locate Individual 1, and to harm Individual 1 and others associated with Individual 1.
As part of the scheme, LUSTYIK and Thaler exchanged text messages, including messages about how to pressure Ahmed to pay them additional money in exchange for confidential information. For example, in text messages, LUSTYIK told Thaler, “we need to push [Ahmed] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” Thaler responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”
For another example, in or about late January 2012, LUSTYIK, upon learning that Ahmed was considering using a different source to obtain confidential information about Individual 1, texted Thaler, “I want to kill C . . . . I hung my ass out the window n we got nothing? . . . . Tell [Ahmed], I’ve got [Individual 1’s] number and I’m pissed. . . . I will put a wire on n get [Ahmed and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to Individual 1].” LUSTYIK further texted Thaler, “So bottom line. I need ten gs asap. We gotta squeeze C.”
* * *
LUSTYIK, 53, of Westchester County, pled guilty on December 23, 2014, to all five counts in the Indictment in which he is charged. LUSTYIK pled guilty to (1) conspiracy to engage in a bribery scheme; (2) soliciting bribes by a public official; (3) conspiracy to defraud the citizens of the United States and the FBI; (4) theft of government property; and (5) unauthorized disclosure of a Suspicious Activity Report. In addition to his prison term, LUSTYIK is also sentenced to two years supervised release.
Thaler, 51, of New Fairfield, Connecticut, and Ahmed, 35, of Danbury, Connecticut, were each sentenced for bribery and conspiracy to commit fraud, to which each previously pled guilty. Thaler was sentenced by Judge Briccetti to 30 months in prison, and Ahmed to 42 months in prison.
Mr. Bharara praised the efforts of the Department of Justice Office of the Inspector General, which conducted the investigation in this case.
The prosecution is being handled by the Office’s White Plains Division and by the Public Integrity Section of the U.S. Department of Justice. Assistant United States Attorney Benjamin Allee and Trial Attorney Emily Rae Woods are in charge of the prosecution.
Former Assemblyman William Scarborough Sentenced on Fraud and Theft ConvictionsRead the Press Release
ALBANY, NEW YORK – Former New York State Assemblyman William Scarborough, 69, of Queens, New York, was sentenced today to 13 months in prison and 2 years of supervised release after being convicted of wire fraud and theft from a program receiving federal funds, announced United States Attorney Richard S. Hartunian of the Northern District of New York, New York State Attorney General Eric T. Schneiderman, New York State Comptroller Thomas P. DiNapoli, and Special Agent in Charge Andrew W. Vale of the Federal Bureau of Investigation, Albany Division.
Senior United States District Judge Thomas J. McAvoy also ordered that Scarborough pay $54,355 in restitution to New York State and forfeit the same amount to the United States. Scarborough pleaded guilty on May 7, 2015 pursuant to a written plea agreement with the United States that required him to resign his position as a Member of the New York State Assembly.
Scarborough’s federal convictions relate to his wrongful receipt of per diem payments from New York State. Assembly members receive per diem payments when they spend time in, and travel to and from, Albany. Scarborough falsely claimed, and received, per diem payments for days that he was not in Albany or in transit to or from the city.
U.S. Attorney Richard S. Hartunian said: "It is a sad day when an elected official is sentenced to imprisonment, but it is a serious crime when such an official steals the state funds he is sworn to safeguard. Former Assemblyman Scarborough betrayed the people’s trust when he repeatedly lied about when he had been in Albany to line his pockets. We hope that this prosecution helps bring an end to abuses of the state legislature’s per diem system."
As a New York State Assemblyman, Scarborough was entitled to receive the following types of payments when he traveled to Albany for legislative business: an allowance for overnight stays in Albany (full per diem), which varied from $160 to $171 per day; an allowance for travel not requiring an overnight stay in Albany (partial per diem), which varied from $49 to $61 per day; and reimbursement for mileage incurred for travel between his home and Albany. To receive those payments, Scarborough was required to submit travel vouchers to the New York State Assembly Finance Department certifying his dates of travel to and from Albany; the number of miles he traveled to and from Albany; the purpose of his travel; the days he was in Albany; and his eligibility for payment for either full per diem or partial per diem on each of those days. He also had to certify that the claimed amount was "just, true and correct."
From January 2009 through December 2012, Scarborough submitted 174 fraudulent travel vouchers to the assembly’s Finance Department, causing the State of New York to pay him $54,355 that he was not entitled to receive. In the fraudulent vouchers, Scarborough falsely certified that he had been in Albany for legislative business on specific days when he had not been in Albany at all, had been in Albany for less time than he claimed on a voucher, or had not stayed in Albany overnight.
On May 7, 2015, in a related case investigated by the New York State Attorney General’s Office and the New York State Comptroller’s Office, Scarborough pleaded guilty in Albany County Court to grand larceny in the fourth degree concerning his misuse of over $40,000 from his Friends of Bill Scarborough campaign account and is expected to be sentenced today to one year of jail time.
"Today’s sentencing of Assemblymember Scarborough on public corruption charges sends a clear message that those who abuse the public trust will be held accountable," said State Attorney General Eric Schneiderman. "Assemblymember Scarborough’s jail sentence resolves one unfortunate chapter in New York State government, but crystalizes the need for comprehensive reform to clean up corruption in our state."
"Public service is a commitment, not a means for self-enrichment," said State Comptroller Thomas P. DiNapoli. "Mr. Scarborough betrayed his oath of office. This case serves as a reminder: we are on the job, we are working together, and we will hold you accountable. I thank U.S. Attorney Hartunian, the Federal Bureau of Investigation and Attorney General Schneiderman for their hard work on this case."
"Today’s sentencing is the culmination of a vigorous and multi-agency investigation," said Special Agent in Charge Andrew W. Vale. "No public official is exempt from law enforcement scrutiny; if they breach the public’s trust through stealing in the course of their official duties, they will be brought to justice."
The federal case was investigated by the Federal Bureau of Investigation, Albany Division, and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Prosecuting the state case is Assistant Attorney General Christopher Baynes of the Attorney General’s Public Integrity Bureau. The Public Integrity Bureau is led by Bureau Chief Daniel Cort and Deputy Bureau Chief Stacy Aronowitz. The state’s investigation was handled by Investigator Mark Spencer and Deputy Bureau Chief Antoine Karam of the Investigation Bureau. The Investigations Bureau is led by Dominick Zarrella. Forensic Auditor Jason Blair, Legal Analyst Sara Pogorzelski, and Supervising Investigator Edward Keegan provided additional assistance.
The New York State Comptroller’s Division of Investigations conducted the investigation for Comptroller DiNapoli's Office.
Florida man convicted of oxycodone traffickingRead the Press Release
CLARKSBIRG, WEST VIRGINIA – Nathaniel Walker, 33, of Miami, Florida, was convicted of oxycodone trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Walker was discovered in possession of oxycodone in Monongalia County, West Virginia. He pled guilty today to a criminal Information charging him with one count of “Possession with Intent to Distribute Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The West Virginia State Police Bureau of Criminal Investigation led the inquiry.
U.S. Magistrate Judge John S. Kaull presided.