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26 October 2015
Cockeysville Youth Group Volunteer Sentenced to Five Years in Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Gregory Wayne Gibson, age 63, of Cockeysville, Maryland, today to five years in prison, followed by 20 years of supervised release, for distribution of child pornography. Judge Bennett also ordered that Gibson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
For the past three to four years, Gibson was a volunteer youth group leader at a church in Baltimore County, working with children ages nine through eighteen. Gibson also assisted with childcare at his wife’s unlicensed home daycare, which included infants.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Gibson’s plea agreement, he collected and distributed child pornography. In July 2014, a detective from the Baltimore County Police Department (BCPD) downloaded a file containing child pornography that Gibson had made available using a file sharing program. The video file depicted a prepubescent female engaged in sexually explicit conduct with an adult male. On February 24, 2015, a BCPD detective again downloaded a video file made available by Gibson using a file sharing program, which depicted a minor female engaging in sexually explicit conduct. On April 16, 2015, a search warrant was executed at Gibson’s residence and at his employer’s location in Baltimore City. During the searches, investigator’s seized Gibson’s laptops and external hard drives, as well as two flash drives, all of which contained images and/or videos of child pornography.
Gibson voluntarily spoke to investigators and admitted using file sharing software to download child pornography. Child pornography was found during a forensic examination of Gibson’s laptops, external hard drives and flash drives, including the videos downloaded by the BCPD detectives during the investigation. The electronic media contained in excess of 260,000 images and videos. A preliminary review revealed that the majority of those files depicted minors engaging in sexually explicit conduct. There were also a significant number of images of child erotica and of images and videos depicting infants and toddlers engaging in sex acts with adults, including images and videos depicting bondage and other acts.
The forensic analysis of the digital evidence seized from Gibson’s residence and place of employment revealed that Gibson was acquiring images of child pornography as recently as five days before the state search warrant was executed.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, the Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Cleveland Thermal to replace three coal‑fired boilers with new natural gas-fired boilers under terms of proposed consent decreeRead the Press Release
Cleveland Thermal LLC will replace three coal‑fired boilers with new natural gas-fired boilers which will significantly reduce sulfur dioxide emissions under the terms of a settlement reached between the company and federal authorities, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“This agreement will improve the air quality for those who live, work and play in Cleveland,” Dettelbach said. “It will help our collective health while bringing a local company in compliance with the law.”
The U.S. Attorney’s Office, acting on the request of the U.S. Environmental Protection Agency, filed a complaint and proposed consent decree.
U.S. EPA Region 5 Administrator Susan Hedman said: “This settlement will protect Cleveland residents from air pollutants that are especially harmful to children, older people and those with asthma.”
Cleveland Thermal owns and operates a facility on Canal Road that houses three coal-fired boilers that generate steam for distribution to customers in downtown Cleveland. In the complaint, the United States alleges that Cleveland Thermal undertook major modifications to two boilers, in 2005 and 2006, but failed to obtain the necessary permits and use the best available control technology for sulfur dioxide and achieve the lowest emission rate for nitrogen oxides.
According to the complaint, significant amounts of excess sulfur dioxide and nitrogen oxides have been and continue to be released into the air. These pollutants harm public health and the environment, contributing to premature mortality, asthma attacks, acid rain, smog and other adverse effects.
Under the proposed consent decree, Cleveland Thermal will shut down the two coal-fired boilers that are the subject of the complaint. Cleveland Thermal also will shut down the remaining coal-fired boiler in its system as well as three fuel oil-fired boilers located at its facility on Hamilton Avenue.
Cleveland Thermal will replace the lost capacity with new natural gas-fired boilers, one of which will begin operation by the end of November. Cleveland Thermal also will have the option to install and operate a new natural gas-fired cogeneration facility, according to the proposed consent decree.
The injunctive relief is estimated to cost $16 million and sulfur dioxide emissions are estimated to be reduced by approximately 900 tons per year.
Cleveland Thermal will pay a penalty of $75,000 and perform an Environmental Mitigation Project worth $350,000.
The consent decree, lodged in the U.S. District Court for the Northern District of Ohio, is subject to a 30-day public comment period and court approval. The consent decree will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html.
Cartel Connected Kidnappers Found Guilty on All CountsRead the Press Release
Contact Person: JD Rowell (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a federal jury in Columbia South Carolina needed only 45 minutes on Friday, October 23, 2015, to convict Juan Fuentes-Morales and Ruben Ceja-Rangel on 8 charges related to the armed abduction of a St. Mathews man that occurred in July of 2014. Evidence presented during the trial established that Ruben Ceja-Rangel (age 58) traveled from his home in Groveland, Florida in early June or July of 2014, for the purpose of conspiring with Juan Fuentes-Morales (age 27) to kidnap the victim from St. Mathews, South Carolina. During the trial evidence was presented that the victim was forcibly taken from his truck in the early morning hours of July 14, 2014 at gunpoint by Ceja-Rangel. Ceja-Rangel and another co-defendant then blindfolded and transported the victim to a residence near Garland, NC, where the victim was held for several hours at gunpoint. The victim testified that at one point, he attempted to escape and Juan Fuentes-Morales struck him and pointed a .25 caliber gun at the victim's head. Evidence presented proved that around 8:00 pm, the victim was moved from Garland to a residence located near Rosoboro, NC on Highway 210.
While held at the second location, the victim was blindfolded and chained to a workout bench, where he was made to lay on the floor from July 9, 2015, until his rescue by the FBI on July 15, 2014. In the early morning hours of July 15, 2014, a compliment of the Charlotte, NC FBI SWAT Team executed a search warrant at the Highway 210 residence near Roseboro. When the SWAT team made entry, they located the victim chained up and blindfolded on the floor. Ruben Ceja-Rangel attempted to run out of the back of the residence but he was quickly detained by FBI Charlotte SWAT operators.
Prior to locating the victim, Operators with the FBI's Hostage Rescue Team (HRT) executed a search warrant at 5363 Old Fayetteville Road, Garland NC. During the execution of this search warrant, agents located a cellular phone that Juan Fuentes-Morales used during the kidnapping to communicate with individuals in Mexico who were demanding a ransom for the victim's return. Agents also located a .25 caliber pistol that Fuentes-Morales had used to hold the victim during his initial abduction on July 9, 2014.
Evidence presented at trial proved that the victim's father owed a drug debt to members of a Mexican Drug Trafficking organization, or cartel, related to the father's inability to sell over 200 pounds of marijuana. Jurors heard multiple phone calls that were recorded by FBI hostage negotiators, wherein the Mexican drug traffickers threatened to gouge out the victim's eyes and ultimately kill him if the father did not pay the ransom.
Ceja-Rangel and Fuentes-Morales were convicted of conspiracy to commit kidnapping, kidnapping, hostage taking, brandishing firearms in furtherance of crimes of violence and lying to the FBI. Ceja-Rangel was also convicted of possession of a firearm by a convicted felon. The defendants face a statutory mandatory minimum 32 years on the firearms charges alone, and could face potential life sentences on the kidnapping and hostage taking charges. A sentencing hearing will be held after a presentencing report is prepared by the United States Probation Office. Judge Michelle Childs of Columbia presided over the trial and will sentence the defendants.
Mr. Nettles stated that drug trafficking begets violent crime, and the conduct of the two convicted defendants exemplifies the violence associated with international drug trafficking organizations that are operating here in the United States. Mr. Nettles added that the FBI did extraordinary work in executing a difficult operational plan to ensure that lives were not lost as a result of the kidnapping that grew out of drug trafficking here in South Carolina.
FBI Special Agent in Charge Dave Thomas added, “The jury's verdict in this matter validates the work of the dedicated professionals who worked quickly and tirelessly to recover the victim, bring justice to the accused and ultimately make South Carolina a safer place.”
The case was initiated by the Calhoun County Sheriff’s Department and was investigated by agents of the Federal Bureau of Investigation from Columbia Field Division and the Charlotte Field Division. Assistant United States Attorneys JD Rowell and Kelly Wilson Hall of the Columbia are prosecuting the case.
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Bridgeport Man Sentenced to More Than 7 Years in Prison for Planning Drug RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS COLON, also known as “Camby,” 37, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 90 months of imprisonment, followed by five years of supervised release, for planning to conduct an armed robbery of narcotics stash house.
This matter stems from “Operation Samson,” an initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, in March 2014, the ATF began an investigation into Camby Colon and his brother, Carlos “Joel” Colon, who were known narcotics and firearm traffickers in Bridgeport. Law enforcement also had received information that Joel Colon was interested committing an armed robbery of a drug dealer. During the investigation, which employed the use of an ATF agent working in an undercover capacity, the Colons recruited others to commit an armed robbery of what they believed to be a narcotics stash house of 15 kilograms of cocaine.
On April 11, 2014, the Colons, Humberto Soto, Markus Mendez, Nelson Diaz, Trevor Pierce and Hiram “Gringo” Mojica gathered at a location in Stamford where they believed they would be informed of the address of the narcotics stash house, and would then travel to the stash house to conduct the robbery. All seven were arrested at that time. A search of the car that Diaz, Pierce and Mojica drove to the location revealed a loaded .40 caliber pistol, an EO Tech sight, black gloves, as well as two rolls of duct tape. A search of the vehicle that Soto and Mendez drove to the meet location revealed a loaded and 9mm pistol, black clothing and a baseball bat.
A subsequent search of an auto-detailing business in Bridgeport where Camby and Joel worked revealed several dozen rounds of ammunition, a small amount of crack cocaine, two digital scales and narcotics packaging materials.
Camby Colon has been detained since April 11, 2014. On March 5, 2015, he pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of use of a firearm in furtherance of a crime of violence.
Joel Colon, Soto, Diaz, Mendez, Pierce and Mojica also pleaded guilty. Joel Colon was sentenced to 90 months of imprisonment, Soto was sentenced to 84 months of imprisonment, Diaz was sentenced to 108 months of imprisonment, Mendez was sentenced to 36 months of imprisonment and Pierce was sentenced to 72 months of imprisonment. Mojica awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Vanessa Richards.
Barton Solvents Enters into Settlement to Ensure Safe Processes at Six Chemical Blending and Distribution Plants in Iowa, Kansas and WisconsinRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced a proposed settlement with Barton Solvents Inc. that resolves multiple environmental violations at five of the company’s chemical blending and distribution facilities in Iowa, Kansas and Wisconsin.
The proposed settlement, in the form of a consent decree lodged today in U.S. District Court in Des Moines, Iowa, requires Barton to pay a civil penalty of $1.1 million and undertake measures to ensure that it’s blending and packaging processes adhere to safety and environmental requirements.
In 2007, violations of the Clean Air Act General Duty Clause resulted in explosions and major fires at two Barton facilities. These explosions and fires led to damage of the facilities, nearby businesses and the evacuation of the facilities and the surrounding communities. EPA inspections at these and other Barton facilities, along with information collected by EPA, found widespread violations of federal and state Resource Conservation and Recovery Act (RCRA) hazardous waste storage requirements and the Clean Water Act (CWA) Spill Prevention, Control and Countermeasure (SPCC) requirements. These types of violations not only put facilities at risk, but the surrounding communities as well.
“This settlement requires Barton to take immediate measures to minimize the potential for dangerous environmental releases and provide maximum safety for workers and the communities where its facilities reside.” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “Barton must also take action in its handling of hazardous waste so that it can achieve full compliance with all state and federal environmental requirements under the RCRA.”
“When companies handling dangerous chemicals fail to comply with environmental laws, catastrophic events can happen,” said Region 7 Acting Regional Administrator Mark J. Hague for EPA. “Under this settlement, Barton will take steps to ensure safe chemical handling at all its facilities by complying with environmental laws that create safer facilities and communities.”
Under the settlement, Barton will also hire independent auditors to perform comprehensive environmental compliance audits and correct any additional violations uncovered at all of its facilities, including a facility in West Bend, Wisconsin.
The proposed consent decree is subject to a 30-day public comment period and approval by the federal court before it becomes final.
For a copy of the consent decree, visit www.justice.gov/enrd/consent-decrees.
Barboursville man pleads guilty to Federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Barboursville man who conspired with others to distribute heroin in the Huntington area in 2014 and 2015 pleaded guilty today to a federal drug charge, announced United States Attorney Booth Goodwin. Roger Lee Black, 34, pleaded guilty to distributing heroin and admitted that on February 26, 2015, a confidential informant working at the direction of the Drug Enforcement Administration contacted him to buy heroin. Black met the informant and drove the informant to Black’s home at 21 Vincent Street in Barboursville, West Virginia. Inside the home, Black sold the informant approximately 10 grams of heroin for $1,200. Black also admitted that he was part of a heroin distribution conspiracy from November of 2014 to April of 2015, and that during the conspiracy, he possessed multiple firearms and was responsible for the distribution of up to 700 grams of heroin.
Black faces up to 20 years in federal prison, and is schedule to be sentenced on January 25, 2016.
The United States Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Baraga Man, Jacob Charles Maki, Sentenced for Assault by StrangulationRead the Press Release
MARQUETTE, MICHIGAN — Jacob Charles Maki, 35, of Baraga, Michigan, was sentenced in U.S. District Court to 27 months’ imprisonment for assault by strangulation, U.S. Attorney Patrick A. Miles, Jr., announced today. In addition, Judge R. Allan Edgar sentenced Maki to serve 3 years of supervised release following the completion of his term of incarceration.
On February 28, 2015, Maki assaulted a victim. The assault began in the bedroom and continued into the bathroom where Maki pinned the victim in the tub and used his hands to strangle her. On March 1, 2015, he resumed the assault and repeatedly strangled the victim. Maki was indicted by a federal grand jury and pled guilty on June 22, 2015, to one count of assault by strangulation.
The Keweenaw Bay Indian Community Tribal Police and the FBI investigated the case. Assistant U.S. Attorney Hannah N. Bobee prosecuted the case.
Augusta Man Pleads Guilty to Bank FraudRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jacob Choate, 27, of Augusta, Maine, pleaded guilty today in U.S. District Court to bank fraud.
Court records reveal that in July and August, 2014, Choate defrauded more than ten banks in central and southern Maine by negotiating nine counterfeit checks and eight altered checks. U.S. Postal Inspectors uncovered Choate’s involvement in the scheme after receiving complaints of stolen mail and reports of cashed stolen checks. Video surveillance cameras at the banks recorded Choate cashing or attempting to cash each check.
Choate faces up to thirty years in prison and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the U.S. Postal Inspection Service as well as the Augusta, Portland, Saco, and Scarborough, Maine Police Departments.
Arizona Woman Pleads Guilty to Federal Heroin Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Annais Moreno, 34, of Phoenix, Ariz., pleaded guilty today to heroin trafficking charges in federal court in Albuquerque, N.M., under a plea agreement with the U.S. Attorney’s Office.
Moreno and co-defendant Fabiola Soriano-Tlapanco, 26, also of Phoenix, were arrested in May 2015, on a criminal complaint charging them with conspiracy and possession of heroin with intent to distribute after DEA agents allegedly found almost four kilograms of heroin concealed in their baggage during an interdiction investigation at the Greyhound Bus Station in Albuquerque, on May 16, 2015. The duo were indicted on the same charges on June 9, 2015.
During today’s proceedings, Moreno pled guilty to a felony information charging her with possession of heroin with intent to distribute. Moreno admitted that on May 16, 2015, she and Soriano-Tlapanco transported 3.95 kilograms of heroin while traveling through Albuquerque on the Greyhound Bus. Moreno further admitted that she was transporting the heroin from Glendale, Ariz. to Denver, Colo.
At sentencing, Moreno faces a statutory maximum of 20 years in federal prison. Moreno remains in custody pending a sentencing hearing which has yet to be scheduled.
Soriano-Tlapanco entered a not guilty plea to the indictment and is currently scheduled for trial in Dec. 2015. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Amherst Man Sentenced to 30 Years for Sex TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today Kenneth Graham, 27, of Amherst, N.Y., who was convicted following a jury trial of sex trafficking by force, sex trafficking of a minor by force, and sex trafficking of a minor, was sentenced to 30 years in prison by U.S. District Judge Richard J. Arcara. In another significant development, the defendant was also ordered to pay $366,000 in restitution to the victims and must forfeit $80,000 in proceeds from his criminal behavior.Assistant U.S. Attorneys Trini E. Ross and Kathleen A. Lynch, who handled the case, stated that between winter 2010 and August 2012, the defendant recruited, promoted and profited from the prostitution activities of two minor girls knowing that the girls were under the age of 18. Graham also recruited, promoted and profited from a third victim, a woman in her 20's.
Graham placed advertisements on the web site backpage.com. One ad read “Amazingly Sexy Sweet Petite Companion 20 working out of the airport area.” The acts took place in various hotels in the towns of Amherst and Cheektowaga and customers were charged between $100 and $200.
According to evidence presented by the Government, two of the victims were assaulted and threatened by the defendant. One victim testified that Graham told her "I'll kill you" and a second victim testified that Graham brandished a weapon at her. Under cross examination, the defendant admitted to pushing one of the victims into a wall and over a piece of furniture.
"This case- with the first of its kind jury verdict- demonstrates why this crime is known as modern day slavery," said U.S. Attorney Hochul. "To think that anyone would work to systematically rape our community's children is outrageous, and today's sentence properly expresses that outrage.
“While this significant sentence cannot fully restore the emotional and physical damage suffered by the victims in this case, it should nevertheless serve as a warning to individuals engaged in this type of depraved behavior: HSI and our partners will be relentless in our continued pursuit of traffickers,” said James C. Spero, Special Agent in Charge for HSI Buffalo. "
The sentencing is the result of an investigation on the part of members of the Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Amherst Police Department, under the direction of Chief John Askey, the Cheektowaga Police Department, under the direction of Chief David Zack, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Additional support was provided by the Western District of New York Human Trafficking Task Force and Alliance. Anyone who has knowledge of any form of trafficking is encouraged to contact the Task Force or the National Human Trafficking Resource Center Hotline at 888-373-7888.
23 October 2015
Winslow Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Darrin Cates, 46, of Winslow, Maine, pleaded guilty today in U.S District Court to possession of child pornography.
According to court records and proceedings, between September 15, 2014, and October 30, 2014, the defendant used a computer and peer-to-peer software to make available for sharing videos of child pornography. In January of 2015, a search warrant was executed at Cates’s residence. Cates’s computer equipment was seized and examined and investigators found over 800 images and 290 videos of child pornography.
Cates faces up to twenty years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine State Police Computer Crimes Unit and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Windermere Woman Pleads Guilty in "Project Synergy” Drug ConspiracyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Camila Correa (25, Windermere) has pleaded guilty to conspiracy to import a controlled substance, conspiracy to possess with the intent to distribute and distribution of a controlled substance, and witness tampering. She faces a maximum penalty of 60 years in federal prison. A sentencing date has not yet been set.
Camila Correa is the fifth Orlando defendant to plead guilty to drug trafficking and related charges concerning the importation and distribution of methylone and ethylone from China, into the Middle District of Florida. These Florida prosecutions are part of an international investigation headed by the Department of Justice’s Special Operations Division entitled Project Synergy.
According to court documents and evidence presented in this case, from no later than January 2014, through their arrests on March 18, 2015, Thiago Correa (“T. Correa”), Camila Correa (“C. Correa”), Travis Simmons, and others conspired to import and distribute no less than 25 kilograms of ethylone and methylone, also called “Molly” or “Mol,” from China, into Orlando, Melbourne, Titusville, Windermere, Orange and Brevard Counties. Additional controlled substances involved in this case are referred to as a-PVP and PVP. T. Correa was a leader and organizer in the conspiracy, in that he ordered the drugs from China, paid for and directed others to pay for the drugs, coordinated shipments, recruited and directed others to the drugs, and distributed and directed others to distribute the drugs. He also possessed and carried firearms during meetings wherein at least one other person was recruited to participate in the conspiracy. C. Correa recruited at least one other person to participate in the conspiracy, provided detailed directions regarding the receipt and transportation of several packages of ethylone, communicated messages to and from co-conspirators, and threatened and intimidated a witness believed to be providing information to federal authorities regarding the groups’ criminal activities. As part of his role in the conspiracy, Simmons transported ethylone, communicated messages, and recruited others to participate in the conspiracy. During the meeting to recruit others into the conspiracy, he also possessed firearms.
In late 2014, Eduardo Da Silva and Mirielson Macedo Pereira worked together to import over a kilogram of ethylone from China to Orlando. Da Silva had previously attempted to import additional ethylone from China and was found with money, drugs, and other evidence upon his arrest.
Below is a chart indicating the status of the defendants’ court cases:
Defendant:
Potential Maximum Sentence:
Sentencing Court:
Sentence / Sentencing Date:
Thiago Correa
Life
U.S. District Judge Gregory A. Presnell
December 14, 2015
Camila Correa
60 Years
U.S. District Judge Gregory A. Presnell
January 11, 2016
Travis Simmons
40 Years
U.S. District Judge Gregory A. Presnell
84 months in federal prison
Eduardo Da Silva
40 Years
U.S. District Judge Carlos E. Mendoza
December 3, 2015
Mirielson Macedo Pereira
40 Years
U.S. District Judge Carlos E. Mendoza
December 3, 2015
“This conspiracy shows how massive quantities of synthetic drugs can enter our communities,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI special agents and our law enforcement partners, like the Brevard County Sheriff’s Office, will continue to work together toward keeping dangerous and deadly substances from harming our citizens.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney J. Bishop Ravenel.
West Virginia officer honored by United States Attorney GeneralRead the Press Release
WHEELING, WEST VIRGINIA – DEA Special Agent Mark Simala was honored this week by United States Attorney General Loretta Lynch at the 63rd Annual Attorney General’s Awards Ceremony for his bravery in saving the life of a Morgantown man last year.
Attorney General Lynch presented Simala, who is the Commander of the Hancock, Brooke, Weirton Drug and Violent Crime Task Force, with the Attorney General’s Award for Exceptional Heroism in recognition of his acts to aid citizens in danger. On November 19, 2014, Simala was traveling to Clarksburg, West Virginia, to complete his quarterly firearms qualification when he came upon a four vehicle accident along Interstate 79. Without regard for his personal safety, Simala took action and rescued an unconscious victim, John Robert Phillips, from his burning vehicle shortly before it became engulfed in flames. Had Simala not acted, Phillips undoubtedly would have perished inside the burning vehicle. Phillips is said to be doing well and recovering from his injuries.
During the incident, Simala suffered burns to his outer clothing, smoke inhalation as well as several small but treatable cuts to his right hand.
“Special Agent Simala’s heroic efforts grabbed the attention of the Attorney General and she recognized him this week for his bravery, composure, and strength of character,” said United States Attorney William J. Ihlenfeld, II. “Mark carries these qualities with him at all times, whether he is investigating drug dealers or saving the life of a stranger on the side of the highway.”
Simala joined the United States Drug Enforcement Administration as a Special Agent in 1996. Simala was assigned to the Hancock, Brooke, Weirton Drug and Violent Crime Task Force in 1999 and was selected as the Task Force Commander in 2010.
Virginia Man Sentenced for Firearm Offense in North CarolinaRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James C. Dever III sentenced WILLIAM JACKSON HARVEY, JR, 53, of Virginia, to 96 months imprisonment to run concurrent with his term of imprisonment previously imposed by the State of Virginia. He was convicted by the State of Virginia for grand larceny and nonviolent felon in possession of a firearm within 10 years.
On March 23, 2015 HARVEY pleaded guilty to the federal charge of possession of a stolen firearm on July 4, 2013.
According to the investigation, on July 18, 2013, a report of stolen firearms was made by the store clerk of People’s Pawn Shop in Kinston when two guns were sold to them. The store clerk advised officers that WILLIAM JACKSON HARVEY, JR. sold a New England .223 rifle and a .22 revolver, to the shop claiming that the guns were his father’s firearms. The firearms were reported stolen along with a third gun, a Taurus .38 revolver, and a 2012 Ford F-250 on July 4, 2013 out of Hanover County, Virginia. On July 23, 2013, HARVEY was arrested in Richmond, Virginia by the U.S. Marshals Service. The truck and one of the three firearms were not recovered.
Investigation of this case was conducted by the Lenoir County Sheriff’s Office, Kinston Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
United States Attorney’s Office Employees Receive Prestigous Anti-Defamation League AwardRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that the Anti-Defamation League (ADL), one of the Nation’s premier civil rights agencies, awarded the Raleigh-Durham Joint Terrorism Task Force and a federal prosecutor at the U.S. Attorney’s Office in Raleigh, the 2015 ADL Service, Honor, Integrity, Excellence, Leadership, and Dedication (SHIELD) Award for the investigation and prosecution of Erwin Antonio Rios. The award ceremony took place on October 13, 2015 in Washington, D.C. Rios intended to commit violent acts against innocent people in furtherance of this extremist doctrine of hate. He planned to wage violent jihad overseas and in the United States.
“This award encapsulates the idea that shared missions, attitudes, and dedication by prosecutors and investigative teams are harbingers of success, and most certainly worthy of recognition,” says USA Walker. “We are honored by this prestigious recognition.”
The National Security Section of the U.S. Attorney’s Office handled this case and in this instance specifically included the efforts of Assistant U.S. Attorney Jason Kellhofer and Intelligence Research Specialist Sarah Foster.
At the ceremony the ADL honored law enforcement heroes who have protected our nation and communities from hate crimes and terrorist threats. The SHIELD award was created in 2010 to annually honor law enforcement for major successes in the fight against hate crimes and domestic and international terrorism. The Award’s name reflects law enforcement’s role as protectors, and is also an acronym for the core values of the profession: Service, Honor, Integrity, Excellence, Leadership, and Dedication.
Kellhofer and Foster, along with many other federal and local law enforcement agents, analysts, and attorneys assisted in the investigation of the case. The award was given for their dedication and extraordinary competence in the investigation and successful prosecution of Erwin Antonio Rios of Fayetteville, North Carolina.
Rios is a self-proclaimed adherent to the extremist views propogated by extremist terrorist groups. Rios desired to travel overseas in order to further what he termed “jihad” and expressly defined as various forms of violence against those he determined to be non-believers – to include U.S. forces. In order to obtain the funds necessary for such travel, Rios devised a scheme to commit violent robberies within North Carolina. He intended to leave no witnesses alive in order to better secure success. As an initial step, Rios sought out a firearm and expressed willingness to purchase a stolen hand gun. The FBI subsequently provided Rios with the opportunity to purchase a purportedly stolen hand gun through a confidential informant. On February 7, 2013, Rios eagerly provided the funds for purchase of a weapon he believed to be stolen and was immediately taken into custody. Rios subsequently plead guilty to knowing possession of a stolen firearm in violation of 18 U.S.C. § 922(j) and to having sought to accomplish the crime in order to further terrorist activity. On October 8, 2013, in the Eastern District of North Carolina, Senior District Judge Howard sentenced Erwin Antonio Rios to ten years’ imprisonment followed by three years of supervised release.
Union County, New Jersey, Youth Organization Leader Admits Sexually Abusing Children, Possessing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Linden, New Jersey, man who was a leader in a boys’ youth organization and a religious education teacher today admitted sexually abusing children and possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Gregory J. Aker, 46, pleaded guilty before U.S. District Judge Susan G. Wigenton in Newark federal court to an information charging him with possession of child pornography. He is currently in state custody.
According to the documents filed and statements made in court:
Aker was a leader with a boys’ youth organization and a religious education teacher with his church. On Feb. 22, 2014, Aker was arrested by the Linden Police Department for sexual assault and endangering the welfare of two minor children.
After his arrest, law enforcement obtained multiple computers and electronic storage media from Aker’s residence. Today, Aker admitted that the devices belonged to him and contained more than 600 images and dozens of videos of child sexual abuse that he knowingly collected. Aker also admitted sexually abusing more than one child who was known to him on more than one occasion.
The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Aker will be required to register as a sex offender. Sentencing is scheduled for Feb. 23, 2016.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, the New Jersey Regional Computer Forensics Laboratory, the Union County Prosecutor’s Office and the Linden Police Department with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: Jeffrey Hark Esq., Cherry Hill, New Jersey
U.S. Attorney Nicholas A. Klinefeldt to Step DownRead the Press Release
DES MOINES, IA—Nicholas A. Klinefeldt announced today that he will step
down as the United States Attorney for the Southern District of Iowa, effective November
15, 2015. After leaving office, Mr. Klinefeldt will become a partner in the Des Moines
office of an international law firm.
“Serving as United States Attorney for the Southern District of Iowa has been the
greatest honor and privilege of my career,” United States Attorney Klinefeldt said today.
“I am grateful for the trust placed in me by President Obama and appreciate the
opportunity I have had to work with Attorneys General Holder and Lynch and the other
dedicated professionals across the Department of Justice. I have been inspired by the
ongoing commitment to justice displayed by the lawyers and staff in the Southern District
of Iowa. They work hard every day to protect the communities across Iowa, and
vigorously represent the United States.”
On September 25, 2009, President Barack Obama nominated Mr. Klinefeldt to be
the United States Attorney for the Southern District of Iowa. The United States Senate
unanimously confirmed his nomination on November 21, 2009, and he was sworn into
office on November 25, 2009. Prior to his appointment as United States Attorney, Mr.
Klinefeldt practiced white collar criminal defense in Boston, Massachusetts, and then
both civil and criminal law in Des Moines, Iowa. Mr. Klinefeldt received his B.A. with
honors and his J.D. with distinction from the University of Iowa. He clerked for U.S.
District Court Judge Robert W. Pratt of the Southern District of Iowa and Chief Justice
Christopher J. Armstrong and Justice Benjamin Kaplan of the Massachusetts Appeals
Court.
As United States Attorney, Mr. Klinefeldt has been a member of the Attorney
General’s Advisory Subcommittee on White Collar Crime and co-chair of the Attorney
General’s Advisory Subcommittee on Criminal Practice. As co-chair of the
Subcommittee on Criminal Practice, United States Attorney Klinefeldt worked with other
leaders in the Department of Justice, on a national basis, to update and expand discovery
policies to ensure defendants receive all of the information they need to adequately
defend themselves, and revamp sentencing practices to ensure the end result of a
prosecution is fair.
Locally, United States Attorney Klinefeldt developed a comprehensive discovery
policy for the Southern District of Iowa that ensures criminal defendants receive even
more information about the case against them than is required by the rules and that they
receive it quickly. This policy included the development of a Stipulated Discovery and
Protective Order that is now universally used in all criminal cases across the district.
United States Attorney Klinefeldt also changed the way the office utilized mandatory
minimum sentences, to ensure that they were only used when absolutely necessary.
As United States Attorney, Mr. Klinefeldt has served as the chief federal law
enforcement officer for the Southern District of Iowa. He has taken great pride in the
relationships he and the office have developed with their federal, state, and local law
enforcement partners. United States Attorney Klinefeldt emphasized and expanded white
collar crime enforcement in the Southern District of Iowa. Under United States Attorney
Klinefeldt’s leadership, the office also brought two major civil rights cases against Des
Moines Police Officers for excessive force.
Mr. Klinefeldt’s leadership of the United States Attorney’s Office included not
only being extensively involved in each of the cases brought by his office, but also
personally handling and trying to juries several prosecutions himself.
The Southern District of Iowa covers 47 of Iowa’s 99 counties, and includes
Council Bluffs, Des Moines, Ames, Iowa City, Davenport, and Burlington. The United
States Attorney’s Office, with staffed offices in Council Bluffs, Des Moines, and
Davenport, has 26 Assistant United States Attorneys and is responsible for conducting all
criminal and civil litigation in the district involving the United States government.
Two Denver Area Gang Members Receive Prison Sentences for Firearm and Drug CrimesRead the Press Release
DENVER – Two individuals who are self-proclaimed gang members have been sentenced by federal judges to lengthy prison sentences for gun and drug crimes, U.S. Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Ken Croke announced. The defendants, whose cases are unrelated, Jonathan Fricks, age 35, and Jesse Garis, age 32, both of Metro Denver, were prior felons caught with guns and drugs, as well as drug distribution paraphernalia.
Defendant Jesse Dale Garis was sentenced to 120 months (10 years) in federal prison, followed by 3 years on supervised release by U.S. District Court Judge John L. Kane. Garis was indicted by a federal grand jury on February 25, 2014. He pled guilty before Judge Kane to possession of a firearm by a previously convicted felon and possession of a firearm in furtherance of a drug trafficking crime on June 15, 2015. He was sentenced on September 10, 2015.
According to court documents, including the stipulated facts contained in the plea agreement, on January 30, 2014, Garis was arrested by the Aurora Police Department for possession of a weapon by a previous offender. Garis was a suspect in the theft of a police computer taken from inside a marked police car while parked at an automobile dealership for service. Police located the defendant inside his vehicle outside his residence as he was observed doing a narcotic transaction involving the sale of methamphetamine. When police officers contacted Garis, he had a SKS rifle in his immediate possession, located along his leg of the driver’s seat. Garis was placed under arrest. In addition to the SKS, officers located a rifle magazine that contained 25 rounds of 7.62 ammunition. They also found 7.36 grams of methamphetamine. The defendant was a self-admitted member of the 211 Crew/Aryan Empire prison gang, and was on federal probation for a conviction for previously possessing a firearm by a convicted felon. He had three additional felony convictions in the state of Colorado. The SKS Garis possessed was to further his drug trafficking.
Defendant Jonathan Thomas Fricks was sentenced to 170 months (just over 14 years) in federal prison followed by 4 years on supervised release by U.S. District Court Judge Christine M. Arguello. Fricks was indicted by a federal grand jury in Denver on December 16, 2014. He pled guilty to possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime on June 8, 2015. Fricks was sentenced by Judge Arguello on September 22, 2015.
According to court documents, including the stipulated facts contained in the plea agreement, between August 15, 2014, the defendant and a woman were observed driving from a Denver motel to a fast food restaurant and then to a grocery store in Edgewater. The defendant, who was in the passenger seat when the car was being driven, was arrested in the grocery store by a Community Parole Officer. Upon his arrest, officers found $3,755 in cash in the defendant’s pants pocket. Officers then searched the car the defendant rode in. They noticed an unzipped black and white bag with a loaded magazine to a firearm showing in the butt of a gun. Upon discovering the firearm, the Community Parole Officer called the ATF for assistance. A full search of the car by ATF agents revealed a 9mm pistol loaded and chambered with seventeen rounds; a second magazine containing five rounds of ammunition; three baggies containing 47 grams of methamphetamine, a small digital scale with meth reside, a large digital scale with met reside, and an obscene photograph showing the defendant’s private part with the firearm in view. The defendant knowingly possessed 47 grams of 95 percent pure methamphetamine. He carried the 9mm pistol in furtherance of his drug trafficking crime. It was determined that Fricks was a documented member of the Oldies 13 Gang and has “Oldies 13” tattooed on his back.
“Local law enforcement, ATF and federal prosecutors have again teamed up to send gang members with guns and drugs to federal prison,” said U.S. Attorney John Walsh. “By focusing on those who traffic drugs while carrying a firearm with lengthy criminal histories, we are focusing on removing those who cause the most harm from our streets.”
“These sentencings, along with others, demonstrate the commitment of law enforcement in Colorado to investigate and prosecute violent criminals and keep them in prison for as long as possible,” said ATF Denver Division Special Agent in Charge Ken Croke.
The Garis case was investigated by the Aurora Police Department. The Fricks case was investigated by the Denver Police Department. The ATF was involved in both investigations.
Garis was prosecuted by Assistant U.S. Attorney Jeremy Sibert. Fricks was prosecuted by Assistant U.S. Attorney Peter McNeilly.
Two California Men Charged with Conspiracy to Distribute Five Pounds of MethamphetamineRead the Press Release
NEWARK, N.J. – Two California men were charged today with conspiracy to distribute methamphetamine, U.S. Attorney Paul J. Fishman announced.
Rigoberto Sandoval-Varela, 30, of Stockton, California, and Mario I. Zavala-Rodriguez, 34, of Palo Alto, California, were charged by complaint with one count of conspiracy to possess methamphetamine with intent to distribute. Sandoval-Varela and Zavala-Rodriguez were arrested in Ontario, California, on Oct. 22, 2015, following an undercover law enforcement investigation. They are scheduled to make their initial court appearances later today in Los Angeles federal court.
According to the complaint:
Earlier this month, an undercover Drug Enforcement Administration (DEA) special agent in New Jersey negotiated with Sandoval-Varela via text message and telephone the purchase of a large quantity of narcotics to be brought from California to New Jersey. Another undercover law enforcement agent later met with Sandoval-Varela and Zavala-Rodriguez on Oct. 21, 2015, in California to conclude the deal. The defendants agreed to provide the undercover agent with large quantities of methamphetamine, heroin, and cocaine in exchange for approximately $765,000. The defendants met with the undercover agent the next day and displayed approximately five pounds of methamphetamine. The defendants fled the scene on foot as other agents approached and were quickly apprehended.
The conspiracy with which both defendants are charged is punishable by a maximum potential penalty of life in prison.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, the DEA’s Los Angeles Field Office and the State of California Department of Justice, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the U.S. Attorney’s Criminal Division in Newark.
Two Buffalo Men Arrested, Charged with Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jay Neal, 37, and Quashawn Lawrence, 25, both of Buffalo, NY, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute 100 grams or more heroin and possession of a firearm in furtherance of drug trafficking activity. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of 45 years, and a $5,000,000. In addition, defendant Neal is charged with being a felon in possession of a firearm. That charges carries a maximum penalty of 10 years in prison.Assistant U.S. Attorneys Thomas S. Duszkiewicz and Michael J. Adler, who are handling the case, stated that according to the complaint, on October 20, 2015, Neal sold a quantity of heroin. The following day, on October 21, 2015, Neal once again agreed to sell a quantity of heroin. The defendant left the meeting location and drove to the vicinity of Dodge St. and Michigan Ave. where a man later identified as defendant Lawrence exited a residence with a tan back pack and entered Neal’s vehicle.
Neal then drove to a residence at 87 Mariner St. in Buffalo. About an hour later, Neal and Lawrence were arrested by police. At the time of his arrest, Neal was armed with a 9mm handgun and had $10,000 in United States currency. Lawrence was in possession of a quantity of crack cocaine. A search warrant executed inside 87 Mariner recovered a gun inside Lawrence’s tan back pack, and another gun, ammunition and 10 grams of heroin inside a dresser drawer.
The defendants made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder. They are due back in court on October 29, 2015 at 11:00 a.m.The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Erie County Sheriff’s Department, under the direction of Timothy Howard.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Twin Cities Carpet Cleaner Sentenced to 21 Months in Prison After Pleading Guilty to Tax EvasionRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of JAMES SIGANOS, 50, to 21 months in prison. SIGANOS was charged on May 26, 2015, by felony information, of evading corporate income taxes. He pleaded guilty on June 11, 2015, before U.S. District Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn. In addition to the 21 month prison sentence, SIGANOS was also ordered to pay $300,619 in restitution.
“This defendant took affirmative steps to hide his business income from the government,” said Assistant United States Attorney Joseph H. Thompson. “But the Criminal Investigation Division of the IRS noticed and stopped Mr. Siganos from continuing to engage in his willful criminal conduct.”
According to his guilty plea and documents filed in court, SIGANOS was the owner of a carpet-cleaning business located in Mound, Minnesota. As owner of the company, the defendant was responsible for filing federal corporate tax returns on behalf of the company. SIGANOS filed a Form 1120S U.S. Income Tax Return for the calendar year 2009, in which he underreported his company’s gross receipts or sales as $246,166.
In 2009, SIGANOS’ company had approximately $591,013 in gross receipts or sales. To avoid paying taxes on the full amount of his company’s revenue, SIGANOS cashed more than 1,400 checks totaling approximately $410,905 at a check cashing facility in Minneapolis. The result was that the defendant underreported his 2009 income by approximately $344,858. SIGANOS filed no corporate income tax returns for the tax years 2010, 2011, and 2012, resulting in an underreporting of approximately $438,991. The total tax loss caused by SIGANOS is approximately $300,000.
This case was the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This was prosecuted by Assistant U.S. Attorney Joseph H. Thompson.
Defendant Information:JAMES SIGANOS, 50
Mound, Minn.Convicted: • Tax Evasion, 1 count
Sentenced: • 21 months in prison
• $300,619 in restitutionTroy Man Sentenced to 20 Years in Prison for Production of Child Pornography and Coercion and Enticement of a MinorRead the Press Release
DAYTON – Michael Epley, 30, of Troy was sentenced to concurrent prison terms of 240 months each on one count of production of child pornography and one count of coercing and enticing a minor to engage in sexually explicit conduct.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers Special Agent in Charge, Federal Bureau of Investigation (FBI), and Troy Police Chief Charles C. Phelps, announced the sentence imposed yesterday by United States District Judge Timothy S. Black.
Epley was indicted in February 2015 on two federal charges of committing sexual acts with children. He pleaded guilty in April 2015 to photographing himself sexually abusing a four-year-old female in 2014 and to inducing a 13-year-old female to engage in sexual activity with him after exchanging conversations and sexually explicit pictures with her over the internet between November 2013 and July 2014. Epley has two previous convictions in 2013 and 2014 involving minor children in Troy, Ohio and is currently serving a state prison sentence for the latter conviction.
Epley will be on supervised release for the rest of his life after serving his federal prison term.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Stewart commended the investigation of this case by FBI agents and Troy Police investigators, and Assistant United States Attorney Kyle Healey, who prosecuted the case.
The Office for Victims of Crime Awards $2.1 Million to Support Victims of the Marysville-Pilchuck School ShootingRead the Press Release
WASHINGTON—The U.S. Department of Justice’s Office for Victims of Crime (OVC) announced a $2,145,327 Antiterrorism and Emergency Assistance Program (AEAP) grant to organizations providing support for the victims, witnesses and first responders involved in the events surrounding the shootings at the Marysville-Pilchuck High School in October 2014.
“OVC is committed to promoting healing and justice for victims of crime,” said Acting OVC Director Marilyn McCoy Roberts. “We recognize the enormous physical and emotional toll the Marysville-Pilchuck High School shooting has had on the surrounding Marysville community including the local Middle School, the affected High School and the Tulalip Tribes. This award will ensure that Marysville, the Tulalip Tribes and the State of Washington can provide critical support to victims and their families as they continue to heal.”
On October 24, 2014, a ninth grade student at Marysville Pilchuck High School, and member of the nearby Tulalip Tribes, shot five students in the school cafeteria before taking his own life. Ultimately only one of the shooting victims survived.
"Though a year has passed, the pain and deep sorrow surrounding the shooting at Marysville-Pilchuck High School remains," said U.S. Attorney Annette L. Hayes for the Western District of Washington. "These funds will provide critical services to those whose lives are forever changed, and will further support the Marysville-Pilchuck school community as it works to rebuild its sense of safety."
This award to the Washington State Department of Commerce, Office of Crime Victims Advocacy, will support crisis response and consequence management service costs, both incurred and anticipated, for organizations providing crisis intervention services and trauma-informed care, continuum of care and other assistance essential to victim healing.
In 1995, following the Oklahoma City bombing, Congress authorized OVC to set aside and administer up to $50 million annually from the Crime Victims Fund for the Antiterrorism Emergency Reserve Fund to assist victims in extraordinary circumstances. Following an act of terrorism or mass violence, jurisdictions can apply for an AEAP grant award for crisis response, criminal justice support, crime victim compensation, and training and technical assistance expenses. OVC also provided AEAP funds and assistance following the mass violence incidents in Boston, Massachusetts (2013); Newtown, Connecticut (2012); Oak Creek, Wisconsin (2012); Aurora, Colorado (2012); Tucson, Arizona. (2011); Binghamton, New York (2009); at the Virginia Polytechnic Institute and State University (2007); and the Minnesota Department of Public Safety on behalf of the Red Lake Nation (2005).
For more information on the AEAP program, please visit
http://ojp.gov/ovc/AEAP/index.html.
About the Office of Justice Programs (OJP)
OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
Texan Pleads Guilty in Designer Drug Case in KansasRead the Press Release
TOPEKA, KAN. – A Texas man pleaded guilty Friday to selling designer drugs manufactured in Kansas, U.S. Attorney Barry Grissom said.
Michael Myers, 36, Montgomery Texas, pleaded guilty to one count of conspiracy to possess with intent to distribute controlled substances and one count of conspiracy to commit mail fraud.
Myers was indicted in April 2014 along with co-defendants Tracy Picanso and Roy Ehrett, the owners of an Olathe-based business that produced and sold dangerous controlled substances and controlled substance analogs of THC (the active ingredient in marijuana) and methcathinones (stimulants). Picanso and Ehrett are scheduled for sentencing April 18, 2016.
Picanso and Ehrett sold products to distributors under names including Pump It, Head Trip, Black Arts, Grave Digger, Voodoo Doll and Lights Out. Some of the counterfeit drugs were manufactured in buckets with drill-powered immersion mixers and tried out on “testers” who helped tweak the recipes.
Myers and co-defendant Michelle Reulet lived together in Houston, Texas, and owned and operated Bully Wholesale, an independent wholesaler and distributor of products purchased from Picanso and Ehrett.
Ehrett routinely traveled from Kansas City to Houston to pick up cash from Reulet and Myers. On at least two occasions Myers met Ehrett in Oklahoma to transfer in excess of $100,000 cash to him. Investigators collected emails and text messages exchanged among the defendants. In an October 2011 email, for instance, Myers claimed the fake weed he was selling would not show up on a drug test. In a January 2012 email to Ehrett, Myers says he and Reulet were buying $600,000 to $900,000 worth of products each month from Ehrett and Picanso.
Sentencing is set for Jan. 25, 2016. Both parties have agreed to recommend a sentence of seven years in federal prison and a civil forfeiture of more than $1.3 million.
Grissom commended the Drug Enforcement Administration, the Food and Drug Administration – Office of Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, Customs and Border Protection, the FBI, the Overland Park Police Department, the Johnson County Sheriff’s Office, the Olathe Police Department, the St. Joseph Police Department and the Buchanan County Drug Strike Force, Assistant U.S. Attorney Tanya Treadway and Assistant U.S. Attorney Tony Mattivi for their work on the case.
Tampa Man Pleads Guilty to Manufacturing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Darius Jondi Edwards (35, Tampa) has pleaded guilty to manufacturing counterfeit Federal Reserve notes. A sentencing date has not yet been set.
According to the plea agreement, in November and December 2014, Edwards used computer media to manufacture counterfeit Federal Reserve notes in denominations of $10, $20, and $100, then provided them to his co-defendant, Timothy Deante Burroughs. During the same period, Burroughs and Edwards entered various businesses in Jacksonville and passed counterfeit $100 bills. On December 1, 2014, Burroughs entered a Publix and passed counterfeit bills. Upon being confronted by store employees, he fled the store on foot. The Jacksonville Sheriff’s Office soon located Burroughs at a nearby motel and detained him. A search of the motel room resulted in the recovery of additional counterfeit $100 bills and led law enforcement to another motel in the immediate vicinity.
At the second location, law enforcement encountered Edwards in front of a motel room. During a search of Edwards’s room, officers located sheets of uncut counterfeit $100, $20, $10, $1 bills, along with several bleached genuine $10 bills printed as counterfeit $100 notes. They also recovered multiple computers and printers being used by Edwards to manufacture counterfeit currency.
On October 20, 2015, Burroughs (32, Jacksonville) was sentenced to 21 months in federal prison for passing counterfeit notes.
This case was investigated by the Jacksonville Sheriff’s Office and the United States Secret Service, Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Spokane Woman Sentenced to 120 Days of Home Confinement and One Year Court Supervision for Bankruptcy FraudRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Michele R. Saldua, age 60, was sentenced today for the crime of making a false declaration under penalty of perjury in relation to a bankruptcy case. Ms. Saldua was a resident of Spokane, Washington but now resides in Arizona. Senior United States District Judge Wm. Fremming Nielsen, sentenced Michele R. Saldua to 120 days of home confinement, followed by a 1-year term of court supervision.
According to information disclosed during court proceedings, in October 2010, while residing in Spokane, Washington, Ms. Saldua filed a petition for Chapter 7 bankruptcy relief in the United States Bankruptcy Court for the Eastern District of Washington. Ms. Saldua signed the Chapter 7 petition under the penalty of perjury, and sought to discharge a $22,782 debt from several creditors. Ms. Saldua also filed schedules of assets and liabilities and a Statement of Financial Affairs (“SOFA”), signed under the penalty of perjury. On line 2 of her SOFA, Ms. Saldua was required to truthfully declare the amount of income, other than from employment, trade, profession, or operation of the debtor’s business she received during the two years immediately preceding the commencement of her bankruptcy case. In August, 2010, Ms. Saldua received $108,400 in income as part of a divorce settlement from her ex-husband’s ING IRA/Deferred Variable Annuity pursuant to a divorce decree entered in their divorce proceeding in Hawaii. Ms. Saldua did not report this income on her SOFA and concealed it from the United States Bankruptcy Court for the Eastern District of Washington and the United States Trustee.
In March 2012, the bankruptcy court entered a default judgment denying Ms. Saldua a discharge of her debts.
Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington, said, "Bankruptcy fraud undermines the whole concept of allowing a debtor to obtain protection from creditors, pay debts in accord with a debtor’s ability, and thereby obtain a fresh start. Concealment of a debtor’s property is a fraud on the entirety of the proceeding.”
The investigation was conducted by the Internal Revenue Service, Criminal Investigation. The case was prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
Seven-Year Prison Sentence for Shasta-Trinity National Forest Marijuana CultivatorRead the Press Release
SACRAMENTO, Calif. — Arturo Alcazar-Tapia, 22, of Eureka, was sentenced today to seven years and three months in prison and ordered to pay $17,000 in restitution for conspiring to manufacture and possess with intent to distribute marijuana and for depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, Arturo Alcazar-Tapia and his brother, Isidro Alcazar‑Tapia, 26, of Eureka, conspired to grow more than 20,000 marijuana plants at two sites in the Shasta-Trinity National Forest in Trinity County. The marijuana was packaged for distribution at a house in Eureka. On August 4, 2014, law enforcement executed a search warrant at the defendants’ home in Eureka and found 33 pounds of processed marijuana divided into one-pound packages and more than $6,000 in cash. At a cultivation site at Big French Creek, agents located and destroyed approximately 7,980 marijuana plants and arrested co‑defendant Ricky Martin Huerta, 21, of Eureka. At a site at Hobo Gulch Road, agents located and destroyed approximately 13,642 marijuana plants. The marijuana cultivation caused significant damage to the land and natural resources of the forest that provides habitat for several threatened and endangered animal species.
At the Big French Creek site, agents observed hundreds of holes dug in the dirt containing soluble fertilizer, bags of trash, empty fertilizer bags, propane tanks, and water lines diverting water from a stream into the marijuana garden. Analysts estimate that cleaning the Big French Creek site will cost the U.S. Forest Service more than $4,000. Agents observed similar destruction at the Hobo Gulch Road site. Analysts estimate that cleaning the Hobo Gulch Road site will cost the U.S. Forest Service approximately $13,000.
All three defendants pleaded guilty in January 2015. On June 16, 2015, Judge Garland E. Burrell Jr. sentenced Ricky Martin Huerta to two years and eight months in prison, and on August 7, 2015, Judge Burrell sentenced Isidro Alcazar-Tapia to 87 months in prison and ordered restitution of $17,000. A fourth defendant, Victor Manuel Alvarez‑Contreras is currently a fugitive.
This case was the product of an investigation by the U.S. Forest Service, the Humboldt County Drug Task Force, the North State Marijuana Team, and the Trinity County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
Roseville Podiatrist Pleads Guilty to $1 Million Health Care Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Neil A. Van Dyck, 64, of Roseville, pleaded guilty today to health care fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Van Dyck was a California-licensed podiatrist who operated a podiatry practice in Roseville called Placer Podiatry. Van Dyck offered “spa”-like treatments and performed routine foot care at his practice. Between 2009 and 2014, however, Van Dyck submitted over $2.8 million in fraudulent claims for reimbursement to Medicare, Medi-Cal, Tricare and private insurers. He falsely claimed that he performed more expensive procedures than he actually performed, or that the routine foot care that was provided was justified because of illness or symptoms that were not present. Often times the treatments were performed by unlicensed staff sometimes when Van Dyck was not present at his practice. Additionally, Van Dyck altered a single-use skincare patch by cutting it into pieces and billed Medicare for multiple applications. In response to a request for documents from an investigator for Medicare, Van Dyck altered patients’ medical records to justify his fraudulent bills. Medicare, Medi-Cal, Tricare, and the private insurers paid Van Dyck over $1 million for his fraudulent claims.
“Providers overbilling and charging for phantom treatments are picking the pockets of taxpayers and assaulting government health program integrity,” said Gerald T. Roy, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services. “Working in close coordination with our law enforcement partners we will tirelessly investigate and bring these criminals to justice.”
“Dr. Van Dyck engaged in health care fraud schemes designed to financially benefit himself without regard for the impact his actions had on his patients,” said Supervisory Special Agent David Hanzal of the FBI’s Sacramento field office. “He fraudulently billed health insurance programs and compromised the integrity of Medicare billing and medical history records of patients, potentially impacting the affected patients’ future medical benefits. The FBI, in coordination with our law enforcement partners, continues to investigate providers who prey on unsuspecting patients and defraud public and private health insurance programs.”
This case is the product of an investigation by the Office of Inspector General for the U.S. Department of Health and Human Services and the Federal Bureau of Investigation. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
Van Dyck is scheduled to be sentenced by Judge Garland E. Burrell Jr. on January 15, 2016. Van Dyck faces a maximum statutory penalty of 10 years in prison and a fine of $250,000 or twice the loss or gain. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Plantation Resident Sentenced to 7 Years in Prison for Identity Theft Tax Fraud SchemeRead the Press Release
A Broward County resident was sentenced to 84 months in prison, followed by three years of supervised release for an identity theft fraud scheme involving 734 unauthorized tax returns.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Keyiona Marvette Wright, 27, of Plantation, Florida, previously pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, from March 25, 2014 to May 6, 2015, forty-six federal tax returns were filed with the IRS claiming refunds of $135,196 from an IP address in Plantation. From September 16, 2014 to May 5, 2015, at least 688 rejected federal tax returns, claiming refunds of $733,276, were electronically transmitted to the IRS from this same IP address. Agents confirmed that the IP address was assigned to an apartment rented by Wright.
Based on this information, agents executed a search warrant at Wright’s residence and found four notebooks containing PII, two computers (one of which had numerous Social Security numbers and other personal identification information (PII) displayed on the screen), a bag and suitcase each containing thousands of PII in paper form, multiple pre-paid/value cards and gift cards, hundreds of documents containing PII (including Department of Labor applications), and papers containing PII scattered throughout the apartment. A forensic analysis revealed that the documents, computers, and debit/credit cards seized from Wright’s residence contained identifying or account information for over 14,000 individuals.
Court documents also indicate that agents found a laptop computer outside Wright’s apartment that contained a video depicting the defendant counting money.
Mr. Ferrer commended the investigative efforts of the IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Cynthia Wood.
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
Physician Sentenced to Three Years’ Probation also Surrenders Medical License and DEA Controlled Substances License for Two YearsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Peter Wisniewski, age 52, of Huntingtown, Maryland, a physician in a Calvert County medical group, today to three years of probation for writing prescriptions for Oxycodone and Adderall in the names of three of his patients that he then kept for his own use. Judge Grimm also ordered Wisniewski to pay a fine of $40,000, which Wisniewski paid at today’s sentencing hearing.
As required in his plea agreement, Wisniewski voluntarily surrendered his DEA controlled substances license and agreed that he would not practice medicine for at least two years.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Calvert County Sheriff Mike Evans.
According to his plea agreement, between March 2012 and April 2015, Wisniewski wrote prescriptions for Oxycodone and Adderall in the names of three elderly patients but kept the drugs for himself. Wisniewski caused the pharmacy to fill the prescriptions, and he picked up the prescriptions without the knowledge or authorization of the patients in whose names he had written the prescriptions. Wisniewski falsely represented to the pharmacy that as the prescribing physician he was collecting the prescriptions in order to deliver them to his elderly patients.
To conceal the scheme, Wisniewski created false entries in the medical files of the three patients in whose names he was writing the prescriptions. During the scheme Wisniewski obtained more than 8,000 Oxycodone pills written in the names of those three patients.
The decision whether to allow Wisniewski to practice medicine at all in the future will ultimately be made by the state medical board.
United States Attorney Rod J. Rosenstein commended the Department of Health and Human Services Office of Inspector General and the Calvert County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack and Lindsay Eyler Kaplan, who prosecuted the case.
Painting Contractor Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RONALD S. BATTAGLIA, 66, of Stratford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 30 days of imprisonment and one year of supervised release for filing false tax returns.
According to court documents and statements made in court, BATTAGLIA is the sole owner of Custom Painting, which provides interior and exterior painting services primarily in Fairfield County. During the 2008 through 2012 tax years, BATTAGLIA failed to provide his tax return preparer with information concerning an additional $867,656 in gross receipts he received in those years. The total tax reported as due on the five returns was $46,687, but BATTAGLIA willfully failed to report and pay an additional $277,582 in federal income taxes for those five years.
The investigation revealed that BATTAGLIA’s clients typically paid him by check. BATTAGLIA then cashed the checks at his bank and received currency for the full value of the check, or he made a split deposit, receiving some cash and depositing the balance into his business account. The amounts of the transactions were typically less than $10,000.
On July 20, 2015, BATTAGLIA pleaded guilty to one count of filing a false tax return.
BATTAGLIA has repaid the IRS $277,582 in restitution. He is still required to pay more than $250,000 in penalties and interest that have accrued on his unpaid taxes.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Operation ‘Fright Night’ Targets Cosmetic Contact Lenses that are Illegally Sold without a Prescription and Pose Risk to EyesightRead the Press Release
LOS ANGELES – The owners and operators of 10 Southern California businesses were charged today in federal court with illegally selling cosmetic contact lenses without prescriptions. Some of the products that were purchased in connection with this investigation were contaminated with dangerous pathogens that can cause eye injury, blindness and loss of the eye.
The 10 criminal informations filed late this afternoon charge the store operators with selling “misbranded” contact lenses because they were sold without prescriptions. The products that were allegedly illegally sold were marketed as Halloween and beauty accessories under names such as Wonder Look, Red Rose, Black & White, Beauty World and Crazy Eagle.
“Contact lenses that fit the eye poorly could cause eye damage, including scratches on the cornea, corneal infection, conjunctivitis, decreased vision and blindness,” according to the charging documents. “Under California law, a California resident retailer could only sell and/or dispense contact lenses if the retailer was a licensed physician or surgeon, licensed optometrist, registered dispensing optician, or a pharmacist.”
“These products pose a serious danger to unsuspecting Halloween shoppers, and those who have already purchased these products should not use them,” said United States Attorney Eileen M. Decker. “As required by the law, contact lenses should be used only when they are prescribed by a knowledgeable medical professional.”
The cases filed this week are the result of Operation “Fright Night,” which targeted retail stores – some of which were selling Halloween costumes and accessories – that sold cosmetic and decorative contact lenses without a prescription to unsuspecting consumers in Southern California.
The investigation was conducted by the United States Food and Drug Administration’s (FDA’s) Import Operations Branch of the Los Angeles District Office; the FDA’s Office of Criminal Investigations; the California Department of Public Health; and the California Department of Consumer Affairs’ Division of Investigation, Health Quality Investigation Unit.
“Consumers rely on FDA oversight to ensure the safety of their contact lenses. Buying decorative or ‘fashion’ contact lenses without a valid prescription puts consumers’ health – and their vision – at risk,” said George M. Karavetsos, director, FDA Office of Criminal Investigations. “The FDA is committed to working with our law enforcement partners to keep such products out of the U.S. marketplace.”
Contact lenses – whether corrective, cosmetic or decorative – are considered to be prescription medical devices subject to FDA regulations. Due to the risk of injury, blindness and possible eye infection, all contact lenses require prescriptions from medical professionals who can provide guidance on the proper care and maintenance of the contact lenses.
“This joint operation is important because wearing these decorative lenses is dangerous and can cause serious injury, which potentially can result in blindness or the loss of an eye if they are not properly prescribed by a licensed eye care professional,” said Dr. Karen Smith, the director of the California Department of Public Health and the state public health officer. “Those who sell these lenses without obtaining a prescription put people at risk. Operation Fright Night is a great example of our joint commitment to protect public health from the risk of eye-related illness and injury from these prescription medical devices.”
Cassandra Hockenson, the spokesperson for the Medical Board of California, stated: “The Medical Board of California’s primary mission is consumer protection, and it is imperative to get the word out to the public on the dangers of selling contact lenses without a proper prescription from a licensed medical professional.”
The 10 cases filed this week in United States District Court in Los Angeles charge these defendants:
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Arianna Beauty, Inc., which is located on Santee Street in downtown Los Angeles, and its owner, Farshid Ben Cohen, 53, of Los Angeles;
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Alex Mario Collantes Marxelly, 40, of San Bernardino, the owner of Zebra Accessories in San Bernardino;
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Kathy Hwang, 51, of Chino Hills, doing business as Fashion 20 in La Puente;
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Hollywood Toys & Costumes, Inc. in Hollywood, and the store’s owner, Rezvan Moazzez, also known as Ron Moazzez, 69, of Encino;
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Sin Young Yi, 59, of Chino Hills, the owner of Yi’s Accessories in the Central Mercado Mini Mall in La Puente;
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Susie Shin, 52, of La Mirada, the owner of My Treasure in Buena Park;
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J2 Trading, Inc., doing business as Hairitage Beauty Supply in San Bernardino and J2’s owner, Dong Ki Min, 51, of Chino Hills;
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Fashion 4-U, Inc., doing business as Fashion Dream in Garden Grove, and the store’s owner, Jeong J. Park, also known as Sarah Park, 55, of La Mirada;
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La Moda XVII, Inc., doing business as Fashion Q in Baldwin Park; and
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NXT.G Corporation, doing business as Zzotta Shoes in the Pacific View Mall in Ventura, and the store’s owner, Kyung Sook Jung, also known as Grace Lee.
All of the defendants named in the criminal informations will be issued summonses directing them to appear for arraignments in federal court in the coming weeks.
A criminal information contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
All of the charges filed in Operation Fright Night are misdemeanor offenses that carry a statutory maximum penalty of one year in federal prison and fines of up to $100,000 for an individual and up to $200,000 for a corporation.
The California Department of Public Health today warned consumers against using decorative contact lenses without first consulting with an eye care professional (see: http://www.cdph.ca.gov/Pages/NR15-078.aspx).
The FDA has issued various warnings against the use of cosmetic contact lenses (for example: http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm402704.htm).
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North Carolina Man Sentenced to Prison for Interstate Travel in Aid of Drug TraffickingRead the Press Release
Gulfport, Miss – Jywaun Davis Williams, 29, of Charlotte, North Carolina, was sentenced on October 22, 2015, by Chief District Judge Louis Guirola to 28 months in federal prison followed by three years of supervised release for interstate travel in aid of an unlawful activity (drug trafficking), announced U.S. Attorney Gregory K. Davis.
Williams was also ordered to pay an $8,000 fine and forfeit a Sig Sauer pistol found in his possession at the time of his arrest during a traffic stop on I-10 in Gulfport in April, 2014.
The case was investigated by the Gulfport Police Department and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Annette Williams.
Norfolk Men Sentenced for Possession with Intent to Distribute Heroin and other NarcoticsRead the Press Release
NORFOLK, Va. – Cornelius J. Gaymon, 35, of Norfolk, a 10-time convicted felon, was sentenced today to 151 months in prison for possession with intent to distribute heroin. Co-conspirator Tedrick O. Speller, 33, of Norfolk, was sentenced to 84 months in prison on Oct. 5, 2015.
Gaymon pleaded guilty on June 24, 2015, and Tedrick Speller pleaded guilty on June 23, 2015. According to court documents, law enforcement officers conducted several undercover purchases of crack cocaine from Speller before executing a search warrant on his residence in the Berkley neighborhood of Norfolk. Nearly 40 officers from Norfolk’s Special Operations Team and Vice and Narcotics division participated in the execution of the warrant and recovered over $32,000 worth of heroin, crack cocaine, cocaine, and marijuana. Officers also seized digital scales, drug packaging materials, several thousand dollars, and five firearms. One firearm was stolen, another had a high capacity extended magazine, and another weapon’s serial number was obliterated. Speller also maintained a storage unit, which contained nearly $50,000. In Gaymon’s room, officers recovered a Black-Bull industrial size, six-ton hydraulic press machine used to “cut” and re-press heroin and other narcotics with cutting agents to expand volume and profitability.
Gaymon, a former Bloods gang member, attempted to escape from the arresting officers twice, once through a second floor window and again while in handcuffs. He had recently been released from a six-year prison term for distributing cocaine.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Chief U.S. District Judge Rebecca Beach Smith sentenced Speller.
This case was investigated by the DEA High Intensity Drug Trafficking Area (HIDTA) Task Force with the assistance of the Norfolk Police Department. Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney Andrew C. Bosse prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-66 (Gaymon) and 2:15-cr-67 (Speller).
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New Port Richey Man Sentenced for Child ExploitationRead the Press Release
Tampa, FL – United States District Judge Elizabeth A. Kovachevich today sentenced Mark Joseph Unrein (62, New Port Richey) to 12 years and 7 months in federal prison for using a computer and cell phone to attempt to entice a child for sex, and for possession of child pornography. He was found guilty by a jury on July 24, 2015.
According to court documents, Unrein communicated online with an undercover officer who was posing as the mother of a 12-year-old girl. Unrein discussed engaging in sexual acts with the child and traveled late at night on May 9, 2014, to a location in order to meet the “child” for sex. Upon arriving at the location, Unrein crept around the house, peered into windows, and finally approached the door, where he was arrested. Law enforcement subsequently located the computer that Unrein had used to communicate with the undercover officer. A forensic examination of that computer showed that Unrein possessed multiple images of child pornography, including pictures of children in 29 separate identified series. A number of the victims were from the United States, Germany, Norway, Canada, and other places. Unrein was also found to possess images of babies and toddlers being sexually abused, as well as children that were bound and being forced to engage in sexual acts.
“This sentencing emphasizes the gravity of this crime,” said Susan L. McCormick, special agent in charge of HSI Tampa. “This should serve as a shocking reminder to parents that the Internet can be dangerous and online activity of children should be appropriately monitored.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Methamphetamine Courier-Distributor Sentenced to 12 YearsRead the Press Release
Spokane – Jorge Mendoza-Sanchez of Sunnyside, Washington, was sentenced today to 12 years in federal prison for his role as a drug courier and distributor in a large-scale methamphetamine-trafficking conspiracy. Mendoza-Sanchez admitted to regularly transporting pounds of methamphetamine from California to Spokane and distributing it to other members of the conspiracy, who in turn sold it to street-level dealers. In addition to Mendoza-Sanchez, six others were charged in the drug-trafficking conspiracy and four of those conspirators were charged with the violent drug-related murder of one of the organization’s Spokane-area street-level dealers. The Organized Crime Drug Enforcement Task Force case was initiated by Spokane Police Department as a murder investigation and referred to the Drug Enforcement Administration as details of the related drug-trafficking conspiracy became known. Although Mendoza-Sanchez was not implicated in the murder, Senior United States District Judge Wm. Fremming Nielsen determined that despite Mendoza-Sanchez’s minor role compared to other members of the conspiracy, the amount of methamphetamine and Mendoza-Sanchez’s possession of a firearm justified a substantial sentence.
The case was prosecuted by Stephanie Van Marter and Russ Smoot, Assistant United States Attorneys for the Eastern District of Washington.
Manufacturer of Defective North Carolina Bridge Parts Arrested in Chicago Area Following IndictmentRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that SANTIAGO DE LA TORRE, 45, of Joliet, Illinois, has been charged by a federal grand jury in a 17-count indictment with Making False Statements Concerning Highway Projects and Aiding and Abetting; Aggravated Identity Theft and Aiding and Abetting; Conspiracy to Make False Statements Concerning Highway Projects; and Perjury. Agents with the Federal Bureau of Investigation arrested DE LA TORRE in the Chicago area on October 21, 2015.
The indictment alleges that SANTIAGO DE LA TORRE and his brother, Joel De La Torre, residents of Illinois, opened a business called Delgado Elastomeric Bearings Corporation (DEBC). Through DEBC, the defendant and his brother manufactured and sold elastomeric bridge bearings, which are effectively shock absorbers for bridges. The defendant and his brother sold the bearings for use by multiple North Carolina highway contractors on numerous bridges in the state.
The indictment alleges that between 2009 and October of 2011, SANTIAGO DE LA TORRE and Joel De La Torre carried out a scheme to manufacture and sell bridge bearings on federal and state highway contracts in North Carolina and forged an application with the State of North Carolina to be able to supply bridge bearings on highway projects within the state.
The indictment further alleges that with each shipment of bridge bearings, SANTIAGO DE LA TORRE and his brother falsified various documents concerning the quality and testing of the bridge bearings. The indictment alleges that the certifications were false and fraudulent for various reasons, including the fact that SANTIAGO DE LA TORRE and Joel De La Torre fabricated the test results listed in the certifications.
The indictment further alleges that federal and state construction contractors received and relied upon the false and fraudulent certifications. According to the North Carolina Department of Transportation and the Federal Highway Administration, there is no immediate safety concern arising from the defective bearings. Nevertheless, the bearings will require replacement at a later date. Costs associated with the replacement of the bearings are expected to exceed $5 Million due to the difficulty in removing the bearings from beneath existing structures, engineering costs, and traffic control.
If convicted, the maximum punishment for Making False Statements Concerning Highway Projects, Conspiracy to Make False Statements, and Perjury is up to five years in prison for each count, a $250,000.00 fine for each count, and 3 years of supervised release. Conviction for Aggravated Identity Theft carries a penalty of not less than, nor more than 2 years imprisonment consecutive to any other sentence imposed, $250,000.00 fine and one year of supervised release.
An indictment is an allegation of a crime. The defendant is presumed under the law to be innocent until proven guilty. The defendant’s brother, Joel De La Torre, previously pleaded guilty on a related charge on April 16, 2015.
The investigation of this case was conducted by the Federal Bureau of Investigation and the United States Department of Transportation, Office of the Inspector General. Assistant United States Attorney William M. Gilmore represents the United States.
Man Sentenced in Federal Court for Passing Forged Postal NotesRead the Press Release
Gregory J. Haanstad, Acting United States Attorney for the Eastern District of Wisconsin, announced that on October 22, 2015, Robert James Zoellner (age: 52) of Ripon was sentenced to 18 months in a federal prison by Chief United States District Judge William C. Griesbach. Zoellner previously pled guilty to a single count of passing forged postal notes, in violation of Title 18 United States Code, Section 500. According to the plea agreement and other documents filed with the court, Zoellner acted as a middle-man for a West African counterfeiter and utilized “mystery shopper” advertisements in newspapers and magazines to recruit unknowing individuals to cash hundreds of thousands of dollars in counterfeit postal notes and money orders and forward the proceeds to Zoellner who would in turn wire the proceeds to his contact in Mali, West Africa. In addition to the term of imprisonment, Zoellner was ordered to serve three years of supervised release.
In sentencing the defendant, Chief Judge Griesbach noted the serious nature of the offense, the defendant’s prior criminal record, as well as the need to deter others in the community from engaging in similar fraudulent behavior.
The case was investigated by the Department of Homeland Security – Immigration and Customs Enforcement and the U.S. Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Man Charged in Graffiti of Prehistoric PetroglyphRead the Press Release
FRESNO, Calif. — Christopher James Harp, 58, was arraigned today in Fresno after a federal grand jury returned an indictment on Thursday, charging him with depredation of public lands, United States Attorney Benjamin B. Wagner announced. Harp entered a plea of not guilty at today’s arraignment.
According to court documents, on September 6, 2015, an archaeologist with the United States Forest Service reported graffiti of numerous boulders at a location known as Rabbit Island, a large rock outcropping in the Sequoia National Forest in Kern County that was once the site of a large Tubatulabal Indian village. Agents found black asphalt sealer sprayed on rocks over about 100 yards, including damage to a prehistoric petroglyph of a bighorn sheep on the face of a large boulder.
This case is the product of an investigation by the United States Forest Service. Assistant United States Attorney Michael S. Frye is prosecuting the case.
If convicted, Harp faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Louisiana Man Sentenced for Involvement in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A resident of Tangipahoa Parish, Louisiana, was sentenced to serve 12 months and one day in prison to be followed by three years of supervised release for his involvement in a stolen identity refund fraud (SIRF) scheme, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana announced today.
Martin Jackson Sr., 49, pleaded guilty on July 7 to one count of a multi-object conspiracy to defraud the United States and to commit mail fraud and theft of public money. U.S. District Judge Jay C. Zainey of the Eastern District of Louisiana, who imposed today’s sentence, will determine restitution owed to the Internal Revenue Service (IRS) at a later date.
According to court documents, Jackson, who owned two automotive businesses, and his co-defendants conspired to prepare and file false income tax returns using stolen identities, including the victims’ names and social security numbers, to claim large tax refunds. The refund checks were mailed to addresses in Louisiana, including post office boxes that were opened by the co-conspirators. Once the checks were received, Jackson and his co-defendants falsely endorsed and deposited the refund checks into bank accounts under their control. The co-conspirators then divided the proceeds of the refund checks amongst themselves.
The indictment also charged Cedrick Mitchell, 40; Corey Lewis, 37; Craig Lewis, 40; Angela Chaney, 43; Thaddeus Richardson, 49; and others with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud, conspiracy to commit theft of public money and other charges. On Sept. 15, Cedrick Mitchell was sentenced to serve 33 months in prison. On Sept. 29, Corey Lewis was sentenced to serve 75 months in prison. On Oct. 6, Thaddeus Richardson was sentenced to serve 51 months in prison. On Oct. 13, Angela Chaney was sentenced to serve 36 months in prison and Craig Lewis was sentenced to serve three years of probation. All of the remaining defendants in this case have pleaded guilty to various charges and are awaiting sentencing.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Assistant U.S. Attorneys Hayden Brockett and Dall Kammer of the Eastern District of Louisiana and Trial Attorney Lauren M. Castaldi of the Tax Division, who are prosecuting the case.
Leader of Large-Scale Methamphetamine Trafficking Organization Sentenced to 20 Years in Federal PrisonRead the Press Release
BOISE- Oscar Adan Jaimez-Munoz, 23, a Mexican national residing illegally in California, was sentenced yesterday to 20 years in prison for his leadership role in a large-scale methamphetamine trafficking organization, U.S. Attorney Wendy J. Olson announced. Visiting United States District Judge Dee Benson also ordered Jaimez-Munoz to serve five years of supervised release following his release from prison, and to forfeit $100,000 in drug proceeds. Jaimez-Munoz pleaded guilty on July 20, 2015.
According to the plea agreement, Jaimez-Munoz was living in California in 2014, when he decided to travel to Idaho and begin distributing high purity methamphetamine in the Treasure Valley. He conspired with co-defendants to import over 4.5 kilograms of pure methamphetamine from California for distribution in the Treasure Valley. He was arrested on January 13, 2015, when he attempted to sell eight pounds of methamphetamine to an undercover officer. Jaimez-Munoz was also in possession of a 9 millimeter pistol. Jaimez-Munoz will be deported to Mexico after serving his prison sentence.
“Mr. Jaimez-Munoz’s sentence demonstrates that those who bring methamphetamine, a highly addictive and dangerous drug, into our communities will be vigorously prosecuted,” said Olson. “We hope this sentence will deter others who choose to profit from peddling this poison in our community. This office will work together with its federal, state and local law enforcement partners to bring drug traffickers to justice.”
This case was investigated by the Drug Enforcement Administration, the Ada County Sheriff’s Office, the Boise Police Department, the Meridian Police Department and the Nampa Police Department, as well as the Organized Crime and Drug Enforcement Task Force (OCDETF), which includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Last of Three Defendants is Sentenced in Wire Fraud Scheme to Market Pharmaceutical OintmentRead the Press Release
Oklahoma City, Oklahoma – LAWRENCE GENE BOTHWELL, 35, of Oklahoma City, TOMMY LYNN RICHARDSON, 53, of Ninnekah, Oklahoma, and KENNETH BOYCE,55, of Pleasant View, Utah, have each been sentenced for their involvement in a fraudulent scheme to market a pharmaceutical ointment, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Bothwell was the founder of Bothwell Consulting, LLC, an Oklahoma limited liability company and investment firm whose principal place of business was in Oklahoma City. Bothwell, Richardson, and Boyce were executives at Bothwell Consulting. Prior to founding Bothwell Consulting, Bothwell worked for the Massachusetts-based developer and owner of a topical ointment called Menastil to develop a website to market Menastil to a wider consumer base. However, Bothwell never acquired any ownership interest or distribution rights in Menastil.
On June 17, 2014, a federal grand jury returned a 13-count indictment charging Bothwell, Richardson, and Boyce for their sale of fraudulent debentures. Specifically, the defendants falsely represented to investors that Bothwell Consulting would use their investments to market Menastil when, in reality, Bothwell Consulting owned no distribution rights to the drug. Instead, the defendants used the fraudulent proceeds for their own financial benefit. Investors were also told that these debentures were secured by a multi-million dollar trust, which did not actually exist.
On October 3, 2014, all three defendants pleaded guilty to their involvement in the scheme. The three men have now been sentenced by United States District Judge Joe Heaton as follows:
- On May 14, 2015, Bothwell was sentenced to serve 78 months in prison, followed by two years of supervised release, and ordered to pay $1,703,781.68 in restitution.
- On July 31, 2015, Boyce was sentenced to serve 30 months in prison, followed by three years of supervised release, and ordered to pay $1,475, 272.97 in restitution.
- On October 21, 2015, Richardson was sentenced to serve 68 months in prison, followed by two years of supervised release, and ordered to pay $1,698,117.50 in restitution.
This case is the result of an investigation by the Federal Bureau of Investigation and was prosecuted by U.S. Attorney Sanford C. Coats and Assistant U.S. Attorney Julia E. Barry.
Lake Mary Man Sentenced to More Than Seventeen Years for Attempting to Entice A Minor into Illicit Sexual ConductRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton, Jr. has sentenced Dennis Michael Wilkerson (40, Lake Mary) to 17 years and 6 months in federal prison for attempting to persuade, induce, and entice a minor to engage in illicit sexual conduct. Wilkerson was convicted by a federal jury on April 16, 2015.
According to evidence presented during the trial, on October 22, 2014, an FBI Task Force Officer, working in an undercover capacity, posted an advertisement on Craigslist. Wilkerson responded by e-mail, inquiring about sexual activity with a 12-year-old “girl.” After a series of communications with the undercover officer, Wilkerson agreed to pay $50 to receive oral sex from the “girl.” A few days later, Wilkerson traveled to Seminole County to meet with the minor. He was subsequently arrested. Agents recovered $53 from Wilkerson’s pocket after his arrest. He acknowledged that the money was to be used as payment for sex.
This case was investigated by the FBI and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Announces Piguet Galland & Cie SA Reaches Resolution under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Piguet Galland & Cie SA (Piguet Galland) has reached a resolution under the department’s Swiss Bank Program. Piguet Galland will pay a penalty of more than $15 million and continue to cooperate with the department.
“With each agreement signed under the Swiss Bank Program, we gain a deeper understanding of the historical patterns and practices of entities and individuals around the world facilitating U.S. tax evasion,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “We are analyzing the information received, pursuing investigations, and remain committed to holding those involved accountable through both civil and criminal enforcement efforts.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, Piguet Galland agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
Piguet Galland evolved through the combination of three small, traditional Swiss private banks focused on wealth management. In November 2003, Banque Franck SA acquired the client relationships of Banque Galland & Cie SA to become Franck Galland & Cie SA. Until 2011, Piguet & Cie (Banque Piguet) was a separate entity, majority-owned by Banque Cantonale Vaudoise (BCV). Between February and April 2011, BCV acquired Franck Galland from its owner, a U.S. financial group (the U.S. financial group), and then merged it with Banque Piguet (the 2011 Acquisition) to form the current entity, Piguet Galland. BCV owns Piguet Galland.
Piguet Galland and its predecessor banks opened, serviced and profited from accounts for U.S. taxpayers with the knowledge that some of these accountholders likely were not complying with their U.S. income tax and reporting obligations. Piguet Galland and its predecessor banks offered a variety of traditional Swiss banking services that they knew or should have known would assist U.S. taxpayers in concealing assets and income from the Internal Revenue Service (IRS), including hold mail and code name or numbered account services.
One particular relationship manager (RM-1) was responsible for managing many of the U.S.-related accounts at Banque Franck and later Franck Galland. RM-1 was a member of senior management at both of those banks. Before Aug. 1, 2008, RM-1 opened several entity and trust accounts for U.S. persons, which remained open past Aug. 1, 2008. RM-1 was a relationship manager for at least 65 U.S.-related accounts at Piguet Galland after Aug. 1, 2008.
RM-1 traveled regularly to the United States, mostly to attend meetings with both existing and potential U.S. clients. Among other places, RM-1 traveled to Arizona, California, New Hampshire, New York and Wisconsin to meet both existing and potential clients. This travel sometimes occurred at the request of the U.S. financial group that owned Franck Galland and often was in connection with trips to visit the U.S. financial group’s management. RM-1 met with U.S. clients at hotels, clients’ clubs and other public places in the United States. Management at Franck Galland, including its former chief executive officer, was aware of RM-1’s travel to the United States. In fact, at least one member of Franck Galland’s Executive Committee knew that RM-1 was a U.S. person at the time he started employment.
Franck Galland permitted two other former relationship managers to travel to the United States to meet with U.S. taxpayer-clients. On one occasion, one of these relationship managers provided $5,000 in cash from an undeclared account held by a U.S. taxpayer-client directly to that client in the United States.
Franck Galland had a sister entity that was also owned by the U.S. financial group. This sister entity was a now-dissolved Cayman Island entity (the Cayman Entity). The Cayman Entity was acquired by Piguet Galland as part of the 2011 Acquisition. The Cayman Entity was ultimately liquidated in 2013, effective in 2014. Prior to the 2011 Acquisition, the Cayman Entity:
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Assisted in the opening of undeclared U.S.-related accounts at Franck Galland, sometimes through entities the Cayman Entity helped to create;
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Helped manage structures holding undeclared U.S.-related accounts at Franck Galland;
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Suggested facilitating meetings in the United States between RM-1 and undeclared U.S. taxpayer-clients with Cayman Entity accounts at Franck Galland;
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Facilitated cash withdrawals and transfers out of undeclared U.S.-related accounts at Franck Galland; and
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Served as trustee for two trusts that held U.S.-related accounts from 1995 to June 2011.
The Cayman Entity also held a subsidiary, the only purpose of which was to hold a condominium in George Town, Cayman Islands. While the condominium was principally for use by the U.S. financial group and its management, it was also used by executives of Franck Galland and at least three of its U.S. taxpayer-clients. The condominium was sold prior to the 2011 Acquisition.
Banque Piguet, another predecessor to Piguet Galland, allowed some of its relationship managers to communicate with its clients, including U.S. taxpayers, through private email accounts and the email domain “4uonly.ch,” without disclosure of the communication’s origin.
Franck Galland and Banque Piguet opened and maintained undeclared accounts beneficially owned by U.S. taxpayers and held in the name of structures, some of which had cash or credit cards linked to them, while knowing, or having reason to know, that some of these structures were used by U.S. taxpayer-clients to help conceal their identities from the IRS. Franck Galland and Banque Piguet also:
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Accepted instructions in connection with U.S.-related accounts not to invest in U.S. securities and not to disclose the names of U.S. taxpayer-clients to U.S. tax authorities, including the IRS;
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Opened and maintained accounts for U.S. taxpayer-clients transferring from other Swiss financial institutions that were closing such accounts, while both Franck Galland and Banque Piguet knew, or had reason to know, that a portion of the accounts at the other institutions were or likely were undeclared; and
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Maintained undeclared accounts for U.S. taxpayer-clients who renounced their beneficial ownership of such accounts, or who transferred account funds to non- U.S.- related accounts, while continuing to exercise control or retain entitlement to the funds.
Throughout its participation in the Swiss Bank Program, Piguet Galland committed to providing full cooperation to the U.S. government. Among other things, Piguet Galland provided a list of the names and functions of individuals who structured, operated or supervised the cross-border business at Franck Galland, Banque Piguet and Piguet Galland.
Since Aug. 1, 2008, Piguet Galland and its predecessor banks held 337 U.S.-related accounts, with aggregate assets under management of $441 million. Piguet Galland will pay a penalty of $15.365 million.
While U.S. accountholders at Piguet Galland who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at Piguet Galland must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“Today’s resolution with Piguet Galland & Cie SA reflects the continuing success of DOJ’s Swiss Bank Program,” said Acting Deputy Commissioner International David Horton of the IRS Large Business & International Division (LB&I). “Through these agreements, we are getting hidden account data and information on those who have aided this tax evasion. U.S. taxpayers with undeclared accounts need to come forward, report their foreign accounts and pay their income taxes.”
“The veil of secrecy has been lifted from what was once a common place for criminals to hide their money offshore,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “By requiring banks to follow the laws already in place and not turn a blind eye to criminal activity, the success of the Swiss Bank Program echoes around the world. The American public expects and deserves the enforcement of the U.S. tax laws to ensure the integrity and fairness of our nation’s tax system.”
Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-CI and IRS LB&I for their substantial assistance. Ciraolo also thanked W. Damon Dennis, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Jury Trial Results in Conviction of Pominent 1-9 Gang Member for Conspiracy to Possess FirearmsRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of VELTREZ BLACK, a/k/a “Chief,” for participating in two street gangs operating throughout Hennepin County. The defendant was a prominent member of the 1-9 gang, which worked together with the Stick up Boys gang to illegally obtain and jointly possess firearms. BLACK was convicted yesterday after a jury trial in federal court of conspiracy and felon in possession of a firearm. A sentencing date has not been set. The other ten co-conspirators indicted in this case have all pleaded guilty.
As proven at trial and according to the defendants’ guilty pleas, the defendants coordinated their illegal activities in order to obtain firearms by theft, trading drugs for guns, and by using straw purchasers without felony histories to buy guns for those members of the gang with felony records. On five separate occasions between August 2010 and November 2014, BLACK was in possession of a total of 12 separate guns while a convicted felon and while in the company of other 1-9 gang members who also were convicted felons. The 1-9 and Stick Up Boys were in a gang war with two other rival gangs. The gang war resulted in the shooting deaths and wounding of numerous gang members on both sides of the conflict. At least fifteen alleged gang members were killed or wounded by gunfire during the gang conflict.
Due to the conflict, members of 1-9 and Stick Up Boys conspired with straw purchasers to illegally acquire and jointly possess firearms. The straw purchasers, DEONTAY JONES and LAKESHA COLEMAN, purchased at least ten guns in their own names and provided at least some of those firearms to members of the 1-9 and Stick Up Boys. JONES filed false police reports explaining that these guns were stolen from his home, when in fact, at least two of the guns were provided to 1-9 gang members.
This case is the result of an investigation conducted by the Hennepin County Violent Offender Task Force (VOTF), the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Minneapolis Police Department. The investigation began as part of an ongoing effort to reduce gang activity connected with numerous incidents of violent crime in Hennepin County. VOTF investigators on this case include personnel from the Hennepin County Sheriff’s Office, Brooklyn Park Police Department, Brooklyn Center Police Department, Golden Valley Police Department, and Richfield Police Department.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Paulsen.
Defendant Information:VELTREZ BLACK, a/k/a “Chief”
Convicted: • Conspiracy – Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countTYWIN BENDER, a/k/a “Finn Winn”
Convicted: • Conspiracy – Felon in Possession of Firearms, 1 count
NITELEN JACKSON, a/k/a “King Nite”
Convicted: • Conspiracy – Felon in Possession of Firearms, 1 count
DONTEVIUS CATCHINGS, a/k/a “Lil Snake”
Convicted: • Conspiracy – Felon in Possession of Firearms, 1 count
CINQUE OWENS
Convicted: • Conspiracy – Felon in Possession of Firearms, 1 count
JABARI JOHNSON
Convicted: • Conspiracy – Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countDARRYL PARKER, a/k/a “Thirsty”
Convicted: • Conspiracy – Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countMARQUIS WOODS, a/k/a “Quis Moe”
Convicted: • Felon in Possession of a Firearm, 1 count
MARQUES ARMSTRONG, a/k/a “Lil Kease”
Convicted: • Conspiracy – Felon in Possession of Firearms, 1 count
DEONTAY JONES
Convicted: • Unlawful controlled substances user in possession of firearms, 1 count
LAKESHA COLEMAN
Convicted: • Conspiracy – Felon in Possession of Firearms, 1 count
Jacksonville Woman Pleads Guilty to Manufacturing and Possessing Counterfeit Business ChecksRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Mychi Michelle Jones (30, Jacksonville) has pleaded guilty to manufacturing and possessing counterfeit business checks. She faces a maximum penalty of up to 25 years in federal prison for the manufacturing charge and up to 10 years’ imprisonment on the possession charge. A sentencing date has not yet been set.
According to the plea agreement, between 2013 and October 2014, Jones manufactured more than 100 counterfeit business checks. Working with others, she obtained compromised bank account numbers and payee names and used that information to print counterfeit business checks. In an effort to make the checks look authentic, Jones used the names of various Jacksonville-area businesses as the purported issuers.
In October 2014, as part of a joint investigation with the Jacksonville Sheriff’s Office, agents from the United States Secret Service executed a federal search warrant at Jones’s room at the Emerson Inn hotel in Jacksonville. Agents located, among other items, a computer, a printer, blank check stock, and a large number of counterfeit checks in various stages of completion. A forensic examination of the seized computer subsequently established that it had been used by Jones to manufacture counterfeit business checks.
This case was investigated by the Jacksonville Sheriff’s Office and the United States Secret Service, Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Jacksonville Man Pleads Guilty in $2.1 Million Fraud SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Andrew A. Rooks (58, Jacksonville) has pleaded guilty to two separate conspiracies to commit mail and wire fraud. He faces a maximum penalty of 20 years in federal prison on each count, plus a fine of twice the amount of the fraud loss. The plea agreement provides for restitution in the approximate amount of $2,187,000 to two victims, Sea Star Line, LLC and TrailerBridge, Inc. The agreement also provides for the entry of a personal money judgment against Rooks in the amount of approximately $2,187,000, which represents the proceeds of the fraud. A sentencing date has not yet been set.
According to court documents, from 2001 until July 2011, Rooks worked for Sea Star Line, LLC, in its Jacksonville office. Sea Star transports goods by vessel in interstate and foreign commerce and has operations at the Port of Jacksonville. Rooks last served as the assistant vice president of operations. Beginning no later than November 2005, Rooks authorized the payment of phony invoices submitted on behalf of co-conspirator Keith Beavers. The invoices were for container and equipment decals that were never provided to Sea Star. The total payments Sea Star made to Beavers exceeded $1 million. During the same period, Rooks also carried on a second conspiracy. He authorized the payment of phony invoices to two companies controlled by co-conspirator Russell Cody. The invoices, totally more than $1 million, were for inspection and transportation services of Sea Star’s containers and equipment. They were false because those services were never provided by Tiburon Transportation Services or Lancer Logistics, which were front companies that Cody controlled. Instead, Beavers and Cody made kickback payments to Rooks, and to a company Rooks controlled.
After Rooks was terminated by Sea Star, he got a job with another Jacksonville company, TrailerBridge, Inc., and continued the scheme. TrailerBridge paid approximately $107,000 as a result of phony invoices.
Beavers and Cody previously pleaded guilty to their role in the conspiracies and are scheduled for sentencing on February 1, 2016.
This case was investigated by the Jacksonville office of the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Dale Campion.
Iowa Landowner Sentenced for Leasing Land Used in Illegal Guided Deer HuntsRead the Press Release
DES MOINES, IA - On October 21, 2015, Steven C. Miller, 63, of Russell, Iowa, was sentenced by Chief United States District Judge John A. Jarvey to 4 years of probation for his role in leasing land that was used in illegal guided deer hunts in Iowa, announced United States Attorney Nicholas A. Klinefeldt. As a condition of his probation, Miller must pay a $3,000 fine, and cannot engage in hunting activities or allow any form of hunting or trapping to occur on his property. Miller was also ordered to pay a $2,500 money judgment in lieu of forfeiture of his equipment used during the illegal guided hunts, and pay a $25 special assessment to the Crime Victims Fund.
Iowa is a renowned destination for hunting white-tail, buck deer. The state is routinely ranked as one of the top states in the nation for producing trophy white-tail, buck deer. These deer serve as an important natural resource, which is carefully managed by the Iowa Department of Natural Resources. Part of this process involves the restriction on the number of out-of-state hunters who are allowed to hunt white-tail deer in Iowa each year. On average, out-of-state hunters can obtain a license once every three-to-four years to hunt white-tail, buck deer in Iowa.
People who hunt illegally for Iowa trophy deer undermine the State's management efforts, and deprive those who hunt ethically and follow the laws and regulations of opportunities to take trophy deer.
From around 2009 to January 2014, Miller leased land in rural Lucas County to Robert Jerome Wilkins of Alabama, for Wilkins to hunt for white-tail deer. Wilkins guided out-of-state hunters during paid hunts for trophy white-tail, buck deer on Miller's land. None of these out-of-state hunters possessed hunting license or tags as required by the laws and regulations of the State of Iowa. Some of the hunters were successful in illegally killing white-tail, buck deer, and the capes and antlers of those deer were transported from Iowa to Alabama.
Miller pled guilty on July 14, 2015, to a misdemeanor violation of the Lacey Act for the unlawful sale of wildlife in violation of 16 U.S.C. §§ 3372(a)(2)(A), 3373(d)(2). Miller acknowledged that in the exercise of due care, he should have known that the hunters were hunting for and killing the deer in violation of Iowa's hunting laws and regulations.
In the related cases, Robert Jerome Wilkins previously pled guilty to felony conspiracy to commit the unlawful sale of wildlife, was sentenced on July 17, 2015, by Senior United States District Judge James E. Gritzner to 4 years of probation, which included 6 months of home confinement. Wilkins was also ordered to pay $12,000 in restitution to the Iowa Department of Natural Resources, pay a $100 special assessment to the Crime Victims Fund, and forfeit firearms and a scope used in the illegal hunts.
Wilkins was assisted during the guided hunts by Kinsman Bruce Wolfe of Montgomery, Alabama. On July 23, 2015, Wolfe was convicted by a jury of conspiracy to commit the unlawful sale of wildlife, as well as two counts of unlawful sale of wildlife, all felony offenses. Wolfe is scheduled to be sentenced by Chief United States District Judge Jarvey on November 20, 2015.
"These types of cases show a complete disregard for Iowa's hunting laws and regulations, and this criminal conduct will not be tolerated. Individuals engaging in such conduct, including landowners who allow their land to be used for unlawful hunting, will be held accountable," said United States Attorney Nicholas A. Klinefeldt.
This investigation was conducted by the United States Fish and Wildlife Service, the Iowa Department of Natural Resources, and the Alabama Game and Fish Division, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings, on October 23, 2015 and entering pleas of Not Guilty were:
- JORDALE THOMAS REDWOLF, a 27-year-old resident of Wyola, appeared on charges of felon in possession of a firearm, possession of a stolen firearm, possession of an unregistered firearm, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, REDWOLF faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-76
Appearing before U.S. Magistrate Ostby in Billings, on October 22, 2015 and entering pleas of Not Guilty were:
- ANTHONY DAVID HOPWOOD, a 30-year-old resident of Billings, appeared on charges of possession of a firearm by a person convicted of domestic violence and possession of a stolen firearm. If convicted of the most serious charge contained in the indictment, HOPWOOD faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 14-106
Appearing before U.S. Magistrate Lynch in Missoula, on October 20, 2015 and entering pleas of Not Guilty were:
- PAUL GEE CHIANG, a 41-year-old resident of Renton, Washington, appeared on charges of conspiracy to possess with intent to distribute oxycodone, possession with intent to distribute oxycodone, conspiracy to acquire or obtain possession of a controlled substance by deception, and acquiring or obtaining possession of a controlled substance by deception. If convicted of the most serious charges contained in the indictment, CHIANG faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 15-21
Appearing before U.S. Magistrate Johnston in Great Falls on October 20, 2015 and entering pleas of Not Guilty were:
- NEAL PAUL ROSETTE, a 53-year-old resident of Box Elder, appeared on charges of conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe/wire fraud; bribery/accepting, income tax evasion and willful failure to file tax returns. If convicted of the most serious charges contained in the indictment, ROSETTE faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General, Internal Revenue Service, U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. PACER Case Reference. 15-61
Appearing before U.S. Magistrate Ostby in Billings on October 19, 2015 and entering pleas of Not Guilty were:
- MORGAN MARIE ANDERSON, a 24-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, ANDERSON faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force. PACER Case Reference. 15-94
- CHRISTOPHER BRADLEY CHASE, a 25-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, CHASE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-95
- REGINA DENISE HARDEMAN, a 54-year-old resident of Barstow, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, HARDEMAN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 15-111
- CHRISTOPHER L. HARGITT, a 41-year-old resident of Glendive, appeared on charges of felon in possession of a firearm, possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, HARGITT faces life in prison, $5,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-92
- LARRY BURNELL SEPT, JR., a 43-year-old resident of Richmond, California, appeared on charges of transportation of a person with intent to engage in criminal sexual activity. If convicted of the charge contained in the indictment, SEPT faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-114
Appearing before U.S. Magistrate Ostby in Billings on October 16, 2015 and entering pleas of Not Guilty were:
- JERRY RAY DEGOLYER, a 51 year-old resident of Sidney, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, DEGOLYER faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by State of Montana Division of Criminal Investigations and the Drug Enforcement Administration. PACER Case Reference. 15-108
- ROBERT LELAND HICE, a 68-year-old resident of Billings, appeared on charges of distribution of child pornography, receipt of child pornography and possession of child pornography. If convicted of the most serious charges contained in the indictment, HICE faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-99
- WILLIAM WOODROW SPRINGFIELD, SR., a 53-year-old resident of Lodge Grass, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, SPRINGFIELD faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-121
Appearing before U.S. Magistrate Lynch in Missoula on October 14, 2015 and entering pleas of Not Guilty were:
- CHAD WILLIAM HEDGES, a 41-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, HEDGES faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missouri River Drug Task Force. PACER Case Reference. 15-28
Appearing before U.S. Magistrate Ostby in Billings on October 13, 2015 and entering pleas of Not Guilty were:
- TAVIS ALAN-CODY PAIR, a 31 year-old resident of Billings, appeared on charges of possession of an unregistered firearm and felon in possession of a firearm and ammunition. If convicted of the most serious charge contained in the indictment, PAIR faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-30
- TAVIS ALAN-CODY PAIR, a 31 year-old resident of Billings, appeared on charges of possession of conspiracy to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, PAIR faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-101
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indiana Man Indicted on Federal Charge of Failure to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Ricardo Lamont Irvine (42, Evansville, Indiana) has been indicted by a federal grand jury and charged with failing to register as a sex offender after traveling from Indiana to Florida. If convicted, he faces up to 10 years in federal prison. Irvine was arrested in Jacksonville on September 22, 2015.
According to the indictment, on or about November 4, 1996, Irvine was convicted of child molestation in Evansville, Indiana. Subsequent to his conviction, and between June 8, 2015, and September 14, 2015, Irvine traveled from Indiana to Florida but failed to register as a sex offender as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the United States Marshals Service, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.