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Friday 28 August 2015
Joint Statement by the Department of Justice and the Office of the Director of National Intelligence on the Declassification of the Renewal of Collection Under Section 215 of the USA Patriot Act as Amended by the USA Freedom ActRead the Press Release
On Aug. 27, 2015, the Foreign Intelligence Surveillance Court (FISC) issued a primary order approving the government’s application to renew the Section 215 bulk telephony program. The USA FREEDOM Act of 2015 banned bulk collection under Section 215 of the USA PATRIOT Act, but provided a new mechanism to allow the government to obtain data held by the providers. To ensure an orderly transition to this new mechanism, the USA FREEDOM Act provided for a 180-day transition period during which the existing National Security Agency (NSA) bulk telephony metadata program may continue. After considering an application filed shortly after the passage of the USA FREEDOM Act, on June 29, 2015, the court held that the continuation of the NSA’s bulk telephony metadata program during the transition period remains consistent with both the statute and the Fourth Amendment. The authority under the court’s June 29 order was set to expire today, Aug. 28, 2015.
The government recently filed an application to renew the authority to collect bulk telephony metadata. On Aug. 27, 2015, the court authorized the continued collection of telephony metadata through Nov. 28, 2015, the end of the 180-day transition period contemplated by the USA FREEDOM Act. As of Nov. 29, 2015, both the 180-day transition period and the court’s authorization will have expired and the bulk collection of telephony metadata pursuant to Section 215 will cease.
As previously stated in a July 27, 2015, Joint Statement, the NSA has determined that analytic access to the historical metadata collected under Section 215 (any data collected before Nov. 29, 2015) will also cease on Nov. 29, 2015. However, solely for data integrity purposes to verify the records produced under the new targeted production mechanism authorized by the USA FREEDOM Act, the NSA, subject to court approval, plans to allow technical personnel to continue to have access to the historical metadata for an additional three months. Separately, the NSA remains under a continuing legal obligation to preserve its bulk 215 telephony metadata collection until civil litigation regarding the program is resolved, or the relevant courts relieve NSA of such obligations. The telephony metadata preserved solely because of preservation obligations in pending civil litigation will not be used or accessed for any other purpose, and, as soon as possible, the NSA will destroy the Section 215 bulk telephony metadata upon expiration of its litigation preservation obligations.
As background, in January 2014, early last year in a speech at the Department of Justice, President Obama announced that the intelligence community would end the Section 215 bulk telephony metadata program as it previously existed. The President directed the intelligence community and the Attorney General to develop options for a new approach to match the capabilities and fill gaps that the Section 215 program was designed to address without the government holding this metadata. After carefully considering the available options, the President announced in March 2014 that the government should not hold this data in bulk, and that the data should remain at the telephone companies with a legal mechanism in place that would allow the government to obtain data pursuant to individual orders from the FISC approving the use of specific numbers for such queries.
The President also noted, however, that legislation would be required to implement this new approach and the administration worked closely with Congress to enact the President’s proposal. On June 2, 2015, Congress passed and President Obama signed the USA FREEDOM Act of 2015, which reauthorized several important national security authorities; banned bulk collection under Section 215 of the USA PATRIOT Act, under the pen register and trap and trace provisions found in Title IV of FISA, and pursuant to National Security Letters; and adopted the new legal mechanism proposed by the President.
As in past primary orders in effect since February 2014, and consistent with the President’s direction, the court’s new primary order requires that during the transition period, absent a true emergency, telephony metadata can only be queried after a judicial finding that there is a reasonable, articulable suspicion that the selection term is associated with an approved international terrorist organization. In addition, the query results must be limited to metadata within two hops of the selection term instead of three.
The Office of the Director of National Intelligence will post the new primary order to its website and icontherecord.tumblr.com after it has undergone a classification review.
The new primary order is available here and icontherecord.tumblr.com.
FISC Primary Order
Houston Man Sentenced on Gun ChargeRead the Press Release
HOUSTON – A Houston man arrested earlier this year following his social media posts regarding ISIS has been ordered to federal prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Kenneth Magidson. Frederick Remon Robinson, 46, pleaded guilty June 3, 2015.
Today, U.S. District Judge Sim Lake ordered he serve 30 months in federal prison to be immediately followed by three years of supervised release.
Robinson was arrested in April 2015 following an investigation launched after he publicly posted several messages on various social media sites such as Twitter. Those posts claimed such comments as “if white people hate ISIS so much, then I like ISIS. The enemy of my enemy is my friend. #chopthemheadsoff Amerikkka is the Black Man’s Foe.” He further tweeted such statements as “I say, don’t hesitate – start shooting in their cars. empty whole clips. find them at home and fire bomb it. anything., do something.”
Robinson also posted pictures of firearms he owned and demonstrated how to load firearms in videos he posted online. Robinson had previously been convicted in Harris County of possession of a controlled substance with the intent to deliver. At the time of his plea, Robinson admitted he possessed a Heckler & Koch, model VP9, 9mm caliber pistol and a Smith & Wesson, model MP-15, .223 caliber rifle. As a convicted felon, he is prohibited from possessing a firearm per federal law.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by a joint federal task force that includes the Bureau of Alcohol Tobacco, Firearms and Explosives and the FBI. Assistant U.S. Attorney Alamdar S. Hamdani is prosecuting the case.
He’s at It Again: Turtle-Egg Thief Convicted A Second Time for Stealing Nested Sea Turtle Eggs from Coastal Georgia IslandRead the Press Release
BRUNSWICK, GEORGIA- Lewis Jackson, 60, of Brunswick, Georgia pled guilty today before Chief United States District Court Judge Lisa Godbey Wood to stealing loggerhead sea turtle eggs in violation of the Lacey Act. Among other things, the Lacey Act makes it unlawful for any person to acquire, receive and transport loggerhead sea turtle eggs, as loggerheads are endangered species under federal law. Back in 2013, Jackson was convicted a first time for stealing turtle eggs, and was sentenced to serve 6 months in prison. Jackson was on federal supervised release when he was caught stealing turtle eggs for the second time.
According to evidence presented during today’s guilty plea hearing, on July 6, 2015, a Wildlife Technician with the Georgia Department of Natural Resources Sea Turtle Program discovered that 84 loggerhead sea turtle eggs from a nest on Sapelo Island, Georgia were missing. Law enforcement determined that one of the visitors to the island that day was Jackson, who had stolen over 150 loggerhead turtle eggs in 2012. The next day, on July 7, Jackson was arrested trying to leave the island with a cooler full of sea turtle eggs. Jackson appeared to have wrapped the eggs with the intent to sell them. Loggerhead eggs now fetch as much as $25 per egg on the black market. Because of Jackson’s handling of the turtle eggs, they were no longer viable and were therefore destroyed. Sea turtles are long-lived and slow to reach maturity. Pressures from the illegal harvesting of eggs and the poaching of adults worsen the extinction risk faced by these animals. In Georgia, the loggerhead sea turtle is listed as “threatened” under the Endangered Species Act and is the most common sea turtle which nests on Sapelo Island.
In 2013, Jackson was sentenced to 6 months in prison and 2 years of supervised release. For his second conviction, he faces a maximum of 5 years in prison and a $250,000 fine. A new sentencing date will be set after the United States Probation Office conducts a presentence investigation. Jackson remains in the custody of the United States Marshals pending his sentencing.
United States Attorney Edward Tarver said, “This defendant has attempted to profit yet again by unlawfully exploiting an endangered species and a national treasure. Since his 6 months was apparently not a sufficient deterrence, we will ask that this defendant be sentenced to serve a significant amount of the next few years in a federal prison.”
Luis Santiago, Special Agent in Charge, Southeast Region, U.S. Fish & Wildlife Service, stated, “We take our mission to support our state counterpart wildlife enforcement agencies very seriously and we will continue to work with our counterparts to concentrate on and aggressively pursue individuals who are involved in the illegal trade of protected species of wildlife.”
This case was investigated by the United States Fish and Wildlife Service, the Georgia Department of Natural Resources, and the United States Probation Office. Assistant United States Attorney E. Greg Gilluly, Jr. is prosecuting the case for the United States. Please direct any additional questions to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Grand Jury Returns 31 Count Superseding Indictment including Rico Charges against Violent YMM GangRead the Press Release
U.S. Attorney Kenneth A. Polite announced that a Superseding Indictment was returned today charging members of a violent New Orleans street gang known as “the Young Melph Mafia” or “YMM” with violating federal racketeering statutes and committing five homicides as well as multiple violations of federal drug and firearm laws. The defendants include: JEFFERY WILSON, age 30; LIONEL ALLEN, a/k/a “Lot,” age 21; JAWAN FORTIA, a/k/a “Tittie” and “Wine,” age 22; DEDRICK KEELEN, a/k/a “Roy,” age 22; DELWIN McLAREN, a/k/a “Poo” and “Poo Stupid,” age 22; and BRYAN SCOTT, a/k/a “Killer,” age 21.
Based upon the ongoing investigation, these defendants, most of whom grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years. During the course of this investigation, it was also determined that the defendants connected to the Young Melph Mafia routinely carried firearms to protect themselves while engaged in distributing illegal narcotics.
ALLEN, KEELEN and FORTIA are facing a mandatory life sentence if convicted of committing a murder in furtherance of racketeering activity, in violation of Title 18, United States Code Section 1959. Attached is a summary of charges and penalties for all defendants.
U.S. Attorney Polite reiterated that the superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department as partners in the metro area’s Multi Agency Gang Unit. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the Multi-Agency Gang (MAG) Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Valuable assistance to the investigation was provided by the United States Customs and Border Protection (CBP) Air and Marine Division. Assistant U.S. Attorneys Maurice Landrieu, Jr. and Edward Rivera are in charge of the prosecution.
Ghanan Man Sentenced for Illegally Reentering the United States After Previous DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced that Kwaku Nsiah, of Ghana, was sentenced to twelve months and a day in federal prison for illegally reentering the United States after having been previously deported. Nsiah will be deported after he serves his sentence.
Nsiah was stopped by the New Hampshire State Police for a driving infraction on March 12, 2015. Nsiah was unable to produce a driver’s license but produced an identification card, issued by the government of Ghana, in the name of Nana Fosu. Nsiah told the trooper that he had entered the United States through JFK International Airport on a visitor visa in November 2014.
Nsiah was arrested for operating without a license and taken to the New Hampshire State Police barracks in Bedford. While being held at the barracks, Nsiah was approached by Immigration and Customs Enforcement agents concerning his status in the United States. Nsiah repeated that his name was Nana Fosu and he entered the United States through New York in 2014. After being advised by the agents that the immigration databases contained no record of any such entry, Nsiah stated he entered the United States illegally through Mexico in 2010.
Subsequent investigation through the use of fingerprint comparisons established Nsiah’s true name, that he had been convicted for distribution of heroin, and that he was previously deported in 1996.
Nsiah pled guilty to the charge on May 21, 2015.
The charge was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. This case was prosecuted by Assistant U.S. Attorney Alfred Rubega.
Former manager of Castalia Farms charged for kickback schemeRead the Press Release
The former manager of Castalia Farms was charged this week for his role in a conspiracy in which he submitted false invoices to his employer in returns for kickbacks and other services from vendors, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Michael K. Conrad, 48, of Castalia, Ohio, was charged with conspiracy and wire fraud via a criminal information.
Conrad managed Castalia Farms, a hospitality facility owned by Owens-Illinois, Inc. and used by the company as a recreational facility. In this capacity, Conrad sometimes had need for industrial equipment or auto repairs. He was a regular customer of an auto dealership where Robert A. Bellamy worked, and was a regular customer of Construction Equipment & Supply, a Sandusky company owned by a person identified as SCW, according to the information.
Beginning in 2001, Conrad engaged in a conspiracy to defraud Owens-Illinois by submitting false and fraudulent invoices, purportedly for services provided related to Castalia Farms. For example, Conrad and SCW submitted invoices to Owens-Illinois for equipment rentals that never occurred, or were far in excess of the time the equipment was rented, or purchase of construction supplies that never occurred, according to the information.
SCW made large sums of money through these fraudulent billings, and would repay Conrad with kickbacks, according to the information.
In another scheme, Conrad and Bellamy submitted false invoices to Owens-Illinois for vehicle repairs that never occurred, repairs to Conrad’s personal vehicles and auto parts never installed on vehicles owned by Owens-Illinois. Conrad received service and parts for his personal vehicles and those of his friends and family paid for by Owens-Illinois, according to the information.
Bellamy has pleaded guilty to his role in the conspiracy. The investigation is ongoing.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Sandusky, Ohio, with the assistance of the Ohio Bureau of Criminal Investigation and the Erie County Sheriff’s Office. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Teacher Charged with Distribution of PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Howard E. Brooks, 37, of Elmira, NY, was arrested and charged by a criminal complaint with possession and distribution of child pornography. The charges carry a mandatory minimum sentence of five years in prison, a maximum of 20 years, and a $250,000 fine.Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that according to the complaint, on February 28, 2015, the Federal Bureau of Investigation determined that a user of an internet account at a residence on Lexington Avenue in Elmira was linked to an online community of individuals who send and receive child pornography online. Subsequent investigation determined that that the user of the account was Brooks, a former teacher at the Elmira Christian Academy School.
The FBI executed a search warrant at the defendant’s residence on July 13, 2015. Brooks was home at the time and told special agents that he flushed three thumb drives down the toilet in an attempt to destroy them. Agents were able to recover the thumb drives. A subsequent forensic analysis determined that the thumb drives contained images of child pornography.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson. Brooks was released on conditions and is due back in court on October 2, 2015 at 9:00 a.m. for a status conference.
The arrest was the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
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.
Former Police Officer and School Administrator Pleads Guilty to Violating Sex Abuse LawsRead the Press Release
LOUISVILLE, Ky. – A Grayson County, Kentucky, former police officer and school administrator pleaded guilty in U.S. District Court to violating federal and state sex abuse laws, announced United States Attorney John E. Kuhn, Jr.
Stephen E. Miller, age 45, pleaded guilty to four counts in a superseding information, on July 30, 2015, and this week Chief Judge Joseph H. McKinley, Jr. accepted the plea and scheduled sentencing for November 2, 2015 at 11:00am in Louisville.
Miller pleaded guilty to engaging in abusive sexual contact with three female students and third degree sodomy with a fourth female student. The incidents occurred at Bluegrass Challenge Academy between February and August 2013.
Miller previously worked as a police officer in Leitchfield, Kentucky. He resigned the position following complaints of inappropriate conduct toward two women. Miller then began working at Bluegrass Challenge Academy, a residential, educational program run by the Kentucky National Guard, located on Fort Knox Military Base. Miller had supervisory authority over the Academy students.
Miller faces a maximum sentence of 11 years in prison, a fine of up to $1,000,000 and at least five years of supervised release.John Smith, who was the director of Bluegrass Challenge Academy during the time, has been indicted for failure to report child abuse.If convicted, he faces a maximum sentence of one year in prison, a fine of up to $100,000, and up to one year of supervised release.
Assistant United States Attorneys Amanda E. Gregory and Stephanie M. Zimdahl are prosecuting the case. The Federal Bureau of Investigation (FBI) with assistance from the Army Criminal Investigation Division conducted the investigation.
Former Monroe Public Works Director Pleads Guilty to BriberyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Hugh Stephen Worley, age 53, of Bethlehem, Georgia entered a plea of guilty on August 28, 2015, to one count of bribery before the Honorable C. Ashley Royal, U.S. District Court Judge, in Athens, Georgia.
Mr. Worley served as Director of Public Works for the City of Monroe in Walton County, Georgia for approximately seventeen years. He was terminated in January of 2013 for “violations of personnel policies and procedures.” One such violation involved the rental of an Asphalt Paver from a local company.
In 2008 or 2009, Sims Paving, Inc., a Monroe business, acquired an Asphalt Paver that could be used for small patching and paving jobs. Mr. Worley went to see the owner, Mr. Sims, about a paver that could be used for smaller jobs, such as paving the driveways in the City of Monroe Cemetery. In 2012, Mr. Sims and Mr. Worley came to a verbal agreement that the City would rent the paver for a total of $20,000 over four months. After the agreement, Mr. Worley told Mr. Sims on four separate occasions that he could use $1,000. He did not tell Mr. Sims about his need for the cash until after the agreed upon Paver rental. Fearful that Mr. Worley would renege on the rental deal, Mr. Sims gathered $1,000 together on the four separate occasions. The Paver was never used to pave the cemetery driveways. It sat idle at a cost of $20,000 to the City of Monroe. Mr. Worley admits he engaged in illegal course of conduct with Mr. Sims.
Mr. Worley will be subjected to up to 10 years of incarceration and a $250,000 fine. He will also have to forfeit up to $28,771.61.
“We count on those who work in local government positions to do their jobs with integrity and recognize that they are the stewards of the citizens’ tax money and trust,” said U.S. Attorney Michael Moore. “Instead of using his skills and resources to help the people of Monroe, Mr. Worley used his position to enrich himself at a cost to the people he was supposed to be serving.”
The case was investigated by the Federal Bureau of Investigation, Athens division. Assistant United States Attorney Danial Bennett is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former JP and Bail Bondsman Sentenced on Federal Extortion ChargesRead the Press Release
LAREDO, Texas – A former Webb County justice of the peace (JP) and a former bail bondsman have been ordered to federal prison following their convictions of conspiracy and extortion under color of official right, announced U.S. Attorney Kenneth Magidson. Former Webb County Precinct 2, Place 2, JP Ricardo Rangel, 49, pleaded guilty Sept. 4, 2014, while former bail bondsman Juan Enrique Rodriguez, 36, entered his plea Dec. 17, 2014.
Today, U.S. District Judge Diana Saldaña ordered Rangel, of Laredo, to serve 37 months in federal prison, while Rodriguez, also of Laredo, was sentenced to a 13-month-term. They will both be required to serve three years of supervised release following completion of their sentences. The court found Rangel had received multiple bribes and was a public official in a high-level decision making or sensitive position at the time he committed the crime and that Rodriguez had paid multiple bribes to have Rangel reduce bonds of criminal defendants. Rangel and Rodriguez were also ordered to pay fines in the amount of $5,000 and $15,000, respectfully.
The investigation established that on or about March 25, 2012, Rangel, while performing his duties as a JP, did knowingly and unlawfully accept $250 not due him or his office from Rodriguez. In turn, Rangel granted a $1,000 surety bail bond on an individual who had been arrested and charged with the Texas State criminal offense of driving while intoxicated.
Both were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the FBI. Assistant U.S. Attorneys Daniel C. Rodriguez and Roberto Ramirez prosecuted the case.
Former Beaver County Woman Charged with Embezzling from her EmployerRead the Press Release
PITTSBURGH - A former resident of Beaver County, Pennsylvania, has been indicted in Pittsburgh by a federal grand jury on charges of mail fraud, United States Attorney David J. Hickton announced today.
The 28-count indictment named Maria P. Makozy, 47, now residing in Port St. Lucie, FL, as the sole defendant.
According to the indictment, Maria P. Makozy embezzled from her former employer, Keymax Settlement Services, to pay for personal credit card expenses using company checks.
The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both at each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Internal Revenue Service-Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Athens-Clarke County Coroner Pleads Guilty to Possession of Stolen FirearmRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Bobby Tribble, age 62, of Athens, Georgia entered a plea of guilty on August 28, 2015 to one count of possession of a stolen firearm before the Honorable C. Ashley Royal, U.S. District Court Judge, in Athens.
In December of 2014, Mr. Tribble was an employee of firearm merchant Franklin’s of Athens. A customer came to purchase a firearm and Mr. Tribble assisted him to complete the transaction according to the Firearm Transfer Record (ATF Form 4473). Shortly thereafter, another Franklin’s employee came across an empty box associated with a Springfield 9mm pistol at the store. When this employee reviewed the ATF Form 4473, he discovered it was supposedly purchased by the customer. The customer, confused as to why Franklin’s had shipped him an empty box for a firearm he did not purchase, contacted the store, bringing the matter to the attention of the management team, the Athens-Clarke Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. An ATF investigation revealed and Mr. Tribble admits that he stole a total of five firearms from Franklin’s of Athens.
Mr. Tribble may face up to 10 years imprisonment, a $250,000 fine, or both. He will be expected to voluntarily surrender his Georgia Peace Officer’s Standards and Trainings (POST) certification
“A man who will steal guns has no business working in a gun store or holding a POST certification,” said U.S. Attorney Michael Moore. “I appreciate the help of the management at Franklin’s and the good work of our local, state and federal partners. Guns in the possession of good, law-abiding people is a positive thing; a gun in the hands of someone who steals it is quite a different matter and will not be tolerated.”
The case was investigated by the Athens-Clarke County Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Atlanta Field Division. Assistant United States Attorney Danial Bennett is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Arkansas State Treasurer Martha Shoffner Sentenced to 30 Months in Prison for Extortion and BriberyRead the Press Release
Little Rock—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and David Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that former Arkansas State Treasurer Martha Ann Shoffner, 71, of Newport, was sentenced to 30 months incarceration in the Bureau of Prisons following her conviction on six counts of extortion under color of official right, one count of attempted extortion under color of official right, and seven counts of receipt of a bribe by an agent of a state government receiving federal funds.
In addition to the term of imprisonment, as part of that sentence handed down Friday by United States District Judge J. Leon Holmes, Shoffner was ordered to pay $31,980 in restitution to the State of Arkansas and a $100 special assessment on each count, for a total assessment of $1,400. The $4,020 in bribe money seized at the time of her arrest was forfeited. Shoffner’s prison term will be followed by two years of supervised release.
"When a public official abuses his or her office and is personally enriched, the trust given by the citizens of Arkansas is violated," Thyer said. "We are satisfied that the Court carefully weighed all appropriate factors in determining the sentence in this case."
"Public corruption betrays the trust that is necessary for our democracy," Resch stated. "The FBI will continue to work with the United States Attorney’s Office to ensure those that participate in public corruption will be held accountable for their actions."
Martha Shoffner was elected as Treasurer for the State of Arkansas in 2006 and 2010. The United States presented testimony that historically, the Treasurer’s Office had used between 8 and 12 bond brokers throughout the state to purchase federal agency bonds for investment. During Shoffner’s first term in office, the bond inventory levels between the brokers was relatively comparable. In mid-2010, Shoffner and Steele Stephens, a broker with St. Bernard Financial, began an arrangement where Stephens made $6,000 payments to Shoffner every six months.
In mid-2010, Stephens made the first $6,000 payment to Shoffner at the State Capitol, resulting in Stephens’ bond inventory increasing above that of other brokers for the State of Arkansas, ultimately reaching over $600 million in bond inventory in August 2012. In total, Stephens received approximately $2 billion in bond business, earning approximately $1,714,889.35 in commissions. Stephens made a total of six payments of $6,000 to Shoffner from mid-2010 through December 2012. Two payments were made at the Capitol, two payments were made at Shoffner’s Little Rock residence, and two payments were made at Shoffner’s home in Newport, Arkansas. Stephens concealed the $6,000 payments in a pie box when he delivered money to Shoffner in Newport.
In January 2013, Stephens began cooperating with the FBI. As part of his cooperation, he recorded a meeting with Shoffner at her home in Newport. In May 2013, Stephens delivered a pie to Shoffner with $6,000 in FBI funds in the pie box. After the broker left Shoffner’s house, Special Agents with the FBI executed a search warrant at the house. Shoffner had taken the cash out of the pie box and placed it in a cigarette box in a kitchen drawer. She also told the FBI that she still had $4,020 from the December 2012 payment hidden in a cigarette box.
Shoffner also received contributions for her November 2010 re-election campaign for Treasurer which she deposited in her campaign account. She had a personal credit card which she used to pay for personal expenses. Shoffner used contributors’ campaign funds to pay for her personal items on her credit card. Ten payments were made to pay her personal credit card between November 5, 2010, and October 9, 2011, ranging in amounts from $200 to $5,000. Shoffner concealed the expenditure of her campaign funds for her personal use.
The charges stemmed from an investigation by the FBI’s ArkTrust Public Corruption Task Force. The ArkTrust Public Corruption Task Force is comprised of FBI Agents, and Task Force Officers from the Arkansas State Police Department, Pulaski County Sheriff’s Office, and the Little Rock Police Department. If you think you see public corruption contact the public corruption hotline at (501) 221-8200.
Floridian Charged in Bankruptcy Fraud SchemeRead the Press Release
PITTSBURGH – A Florida resident has been indicted in Pittsburgh by a federal grand jury on charges of bankruptcy fraud, concealment of bankruptcy assets, false bankruptcy declaration, false statement under oath, and money laundering, United States Attorney David J. Hickton announced today.
The 10-count indictment, returned on August 25, and unsealed today, named Gregory M. Makozy, Sr., 54, as the sole defendant.
According to the indictment, Makozy schemed to defraud the bankruptcy court by concealing assets he owned through pre-Petition and post-Petition transfers of real estate and an automobile. He is also alleged to have laundered fraud proceeds in the purchase of a home in Florida.
The law provides for a total sentence of 40 years in prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Internal Revenue Service-Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five Indicted on Federal Fraud Charges Related to Multi-Million Dollar Pyramid Scheme that Targeted Chinese-American VictimsRead the Press Release
LOS ANGELES – A federal grand jury returned a 14-count indictment late yesterday that charges five defendants with participating in a fraud scheme that generated tens of millions of dollars by soliciting investments in a company that purportedly offered children’s educational courses, but in reality was a pyramid scheme designed to generate revenue by adding new investors.
Members of the conspiracy allegedly made false promises about the company, including claims that it generated substantial revenues from the sale of courses, that investments could be quickly liquidated for significant returns, and that they planned to take the company public through an IPO. In fact, according to the indictment, “the only way for investors to earn any meaningful returns was for them to actively recruit new investors.” The defendants promoted the company through YouTube videos and other postings on the Internet, as well as through meetings with prospective investors and live presentations about the purported investment opportunity.
The indictment alleges that the defendants solicited investments primarily from members of the Chinese-American communities in Los Angeles, San Francisco and New York City.
The five defendants charged in the indictment are:
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Cheong Wha “Heywood” Chang, 47, formerly of Hacienda Heights and most recently a resident of Taiwan;
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Chang’s wife, Toni Chen, 46;
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Wen Chen “Wendy” Lee, 53, of Roland Heights;
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Daliang “David” Guo, 53, of Hyde Park, New York; and
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Chih Hsuan “Kiki” Lin, 50, of Los Angeles and Las Vegas.
Kiki Lin will be arraigned on September 4, and the other four are scheduled to be arraigned on different dates the following week.
The five defendants were arrested earlier this month pursuant to a sealed criminal complaint. Lin was ordered detained (held without bond), and the other four were released after posting bonds ranging from $250,000 to $500,000.
During the course of the scheme, which ran from spring 2011 until about a year ago, the defendants were involved in a series of Hong Kong-based companies collectively known as CKB. With other names that included WIN168 Biz Solutions, Ltd.; CKB168 Ltd.; and Cyber Kids Best Education Limited, these companies purportedly generated substantial profits from the sale of web-based children’s educational courses.
The defendants solicited investments in increments of $1,380, which gave investors “Profit Reward Points” they claimed were worth $750 in cash, would increase in value, and were analogous to per-IPO shares of CKB, according to the indictment.
The indictment alleges that the claims made about these investments were fraudulent because:
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CKB earned little, if any, money from the sale of the children’s educational courses and the overwhelming majority of revenues came from new investors;
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there was no real way for investors to profit from holding the “Profit Reward Points,” and the only way for investors to obtain any significant returns was to recruit new investors;
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the CKB entities and their securities were not registered with the U.S. Securities and Exchange Commission; and
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the CKB entities could not have gone public because they did not have sufficient legitimate revenue to support an IPO.
The indictment alleges that, after the SEC filed a civil enforcement action against them, the defendants attempted to conceal their fraud by preventing the SEC from obtaining relevant documents and information. The indictment also alleges that Kiki Lin made threats to victims she had solicited in order to collect funds from those victims and to dissuade them from making reports to authorities.
The indictment alleges that the defendants collected approximately $30 million from CKB investors. The indictment alleges that the defendants collectively kept approximately $6.5 million of these funds and transferred the rest to others involved in the scheme.
The indictment charges each of the five defendants with one count of conspiracy and 13 counts of wire fraud.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of the charges in the indictment, each defendant would face a statutory maximum sentence of five years in federal prison for the conspiracy count and up to 20 years in prison for each of the wire fraud charges.
This case is the result of an investigation by the Federal Bureau of Investigation.
The Securities and Exchange Commission provided valuable assistance. The SEC previously filed a civil action against the CKB entities and several individual defendants in the United States District Court for the Eastern District of New York (see: https://www.sec.gov/litigation/litreleases/2013/lr22846.htm).
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Felon Indicted for Possessing Firearm, Ammunition at St. JudeRead the Press Release
Memphis, TN – An Ohio man has been indicted for possessing a firearm and ammunition at St. Jude Children’s Research Hospital. The indictment was announced today by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.
An affidavit indicates that in March 2015, Memphis police officers responded to an aggravated assault call at St. Jude. The defendant, 29-year-old Aaron Cauley, had allegedly threatened the life of his child’s mother while they were inside of a patient room.
Cauley and his child’s mother were engaged in a heated argument when he pointed a pistol and threatened to kill her, according to the affidavit. Afraid for her life, the victim alerted St. Jude security of the occurrence. Security subsequently notified Memphis police officers, who arrived on the scene and detained Cauley. Officers reportedly located a knife in the defendant’s pants pocket while searching him.
The affidavit also indicates that security discovered a green backpack hidden under some children’s clothing in the patient room where the alleged incident occurred. A
Sig Sauer 9mm pistol and 56 rounds of 9mm ammunition were found in the backpack. Two hunting knives were also found, according to the affidavit.
Cauley is charged with being a felon in possession of a firearm and ammunition. If convicted, he faces up to life in federal prison. He also faces up to $250,000 in fines.
The case is being investigated by the Memphis Police Department and Project Safe Neighborhoods.
Special Assistant U.S. Attorney Dean DeCandia is prosecuting this case on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Felon Indicted for Possessing Firearm, Ammunition at St. JudeRead the Press Release
Memphis, TN – An Ohio man has been indicted for possessing a firearm and ammunition at St. Jude Children’s Research Hospital. The indictment was announced today by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.
An affidavit indicates that in March 2015, Memphis police officers responded to an aggravated assault call at St. Jude. The defendant, 29-year-old Aaron Cauley, had allegedly threatened the life of his child’s mother while they were inside of a patient room.
Cauley and his child’s mother were engaged in a heated argument when he pointed a pistol and threatened to kill her, according to the affidavit. Afraid for her life, the victim alerted St. Jude security of the occurrence. Security subsequently notified Memphis police officers, who arrived on the scene and detained Cauley. Officers reportedly located a knife in the defendant’s pants pocket while searching him.
The affidavit also indicates that security discovered a green backpack hidden under some children’s clothing in the patient room where the alleged incident occurred. A
Sig Sauer 9mm pistol and 56 rounds of 9mm ammunition were found in the backpack. Two hunting knives were also found, according to the affidavit.
Cauley is charged with being a felon in possession of a firearm and ammunition. If convicted, he faces up to life in federal prison. He also faces up to $250,000 in fines.
The case is being investigated by the Memphis Police Department and Project Safe Neighborhoods.
Special Assistant U.S. Attorney Dean DeCandia is prosecuting this case on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Federal, State and Local Law Enforcement Agencies Announce the Largest Methamphetamine Distribution Takedown in Okeechobee County HistoryRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Paul C. May, Sheriff, Okeechobee County Sheriff’s Office, John J. Burke, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Fort Myers Regional Operation Center-Sebring Field Office, and Susan Benton, Sheriff, Highlands County Sheriff’s Office (HCSO) announce the filing of federal charges against 15 defendants for their alleged participation in a conspiracy to distribute controlled substances, specifically methamphetamines, in and around Okeechobee and Highlands Counties. The defendants have been charged in a single indictment in the matter of United States v. Steven Lee Oakes, et. al., 2015-CR-14046-Martinez. In addition to the federal indictment, 29 individuals have been charged by the Office of the State Attorney, 19th Judicial Circuit of Florida for their alleged participation in a related conspiracy to commit narcotics involved racketeering offenses. This coordinated takedown to combat the drug epidemic is one of the largest in the history of Okeechobee and Highlands Counties.
United States Attorney Wifredo A. Ferrer stated, “The continued collaboration between federal and local law enforcement agencies to attack drug trafficking activity is of paramount importance. Methamphetamines continue to poison our communities at alarming rates. Today’s indictment demonstrates that we are dedicated to protecting the public’s safety and improving the quality of life for law-abiding residents of South Florida by adopting proactive law enforcement initiatives. We will continue to work with our State partners to prosecute individuals whose criminal conduct infects our communities.”
“Cooperative law enforcement is the enemy of these drug rings,” said DEA Special Agent in Charge A.D. Wright. “These indictments and arrests demonstrate the commitment DEA has to combating organized networks that traffic drugs in our neighborhoods. We would like to commend the federal and local law enforcement officers who worked side by side with the DEA. We believe that citizens should be protected from rampant drug dealing and other criminal activity in their communities.”
“This operation illustrates the value of bringing the assets of Federal, State, County and Municipal agencies together in a coordinated investigative effort for maximum impact on an insidious and destructive threat to public safety. FDLE is pledged to support any effort to attack methamphetamine and the host of other illicit drugs that threaten the safety of our residents and visitors,” said FDLE Special Agent in Charge John J. Burke.
Sheriff Susan Benton, HCSO, stated, “As we see the direct link between property crimes and the use of methamphetamines; this significant, large scale investigation will certainly impact local crime and our citizens will be safer as a result. Thank you to our partners at the state and federal level for the help they provide to local residents.”
The federal indictment charges 15 defendants in the Southern District of Florida for their alleged participation in a methamphetamine distribution conspiracy. Charged in the ten count indictment are Steven Lee Oakes, a/k/a “Wildman,” 59, of Davenport, Jetta Lyn Frake, 45, of Lorida, Lacy Junior Locklear, 47, of Davenport, Stephen Patrick Hall, Jr., 35, of Dundee, Daniel John Alsdorf, 58, of Okeechobee, James Ledger Carter, a/k/a “Buddy,” 61, of Lake Port, Teresa Lee Green, 45, of Okeechobee, Tanner Lyn Carter, 22, of Lake Port, Felisha Michelle Leitner, 28, of Okeechobee, David Allen Sparks, 49, of Okeechobee, Jamie Lea Hewitt, 35, of Okeechobee, Jessica Marie Bell, 28, of Okeechobee, Vickie Lynn Johnson, 47, of Okeechobee, Travis Wayne Carr, 23, of Okeechobee, and Timothy Dale Reid, 49, of Okeechobee.
The indictment alleges that all fifteen defendants conspired to distribute 50 grams or more of methamphetamine from as early as July 2014 and continuing to and including August 6, 2015, in Okeechobee and Highlands Counties, in the Southern District of Florida, and other locations, in violation of Title 21, United States Code, Sections 841(a)(1) and 846.
In addition to the conspiracy charge, a number of defendants were also indicted for possession with intent to distribute methamphetamine, in various amounts up to 50 grams or more, in violation of Title 21, United States Code, Section 841(a)(1).
- Steven Lee Oakes was charged with possession with intent to distribute 5 grams or more of methamphetamine on October 8, 14, and 28 of 2014, December 5, 2014 and April 26, 2015. Oakes was also charged with possession with intent to distribute 50 grams or more of methamphetamine on December 17, 2014.
- Lacy Junior Locklear was charged with possession with intent to distribute 5 grams or more of methamphetamine on April 26, 2015.
- Daniel John Alsdorf was charged with possession with intent to distribute 5 grams or more of methamphetamine on April 28, 2015.
- Teresa Lee Green was charged with possession with intent to distribute a mixture or substance containing a detectible amount of methamphetamine on March 10, 2015.
- Vickie Lyn Johnson was charged with possession with intent to distribute 5 grams or more of methamphetamine on March 31, 2015.
During the course of the investigation, law enforcement seized a significant amount of methamphetamine.
This case was the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
The federal indictment is being prosecuted by Assistant U.S. Attorney Courtney L. Coker and Special Assistant United States Attorney Ryan L. Butler. The state matters are being prosecuted by Assistant State Attorney Ashley Albright.
If convicted in federal court, the defendants face the following possible statutory sentences: a mandatory minimum of ten years and up to life in prison for the conspiracy to distribute and/or possession with intent to distribute 50 grams or more of methamphetamine; a mandatory minimum of five years and up to forty years in prison for possession with intent to distribute five grams or more of methamphetamine; and up to twenty years in prison for possession with intent to distribute a mixture or substance containing a detectible amount of methamphetamine.
Mr. Ferrer commended the collaborative efforts of the U.S. Attorney’s Office for the Middle District of Florida and the Okeechobee County Office of the State Attorney. Mr. Ferrer thanked the OCDETF law enforcement agencies that assisted with this multi-faceted investigation, including the DEA, Okeechobee County Sheriff’s Office Narcotics Task Force, FDLE’s Fort Myers Regional Operations Center Sebring Field Office, HCSO, the Okeechobee Police Department, Glades County Sheriff’s Office, Saint Lucie County Sheriff’s Office, Fort Pierce Police Department, the Fort Pierce Offices of the United States Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HIS), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Port Saint Lucie Police Department, Martin County Sheriff’s Office, United States Border Patrol, and Indian River County Sheriff’s Office
An indictment and state charging instruments are only accusations and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Whistleblower Retaliation Lawsuit DismissedRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that United States District Court Judge Thomas O. Rice dismissed a disability discrimination and whistleblower retaliation lawsuit brought by a former federal employee of the Department of Agriculture.
According to information disclosed during the court proceedings, Wendy Alguard, of Yakima, Washington, sued the Department of Agriculture (USDA) claiming that the Agricultural Marketing Service, where Alguard worked as a commodity food grader, had reassigned her after she reported that Snokist cannery was hiding totes of moldy applesauce in 2011. Alguard claimed that the USDA had ignored her disability and then punished her for whistleblowing, by reassigning her and eventually removing her from federal service when she refused a directed reassignment. Alguard initially brought administrative claims before the Office of Special Counsel (OSC), the USDA’s EEO Office, and the Merit System Protection Board (MSPB). She withdrew her claim with the OSC and her claim was rejected by the USDA and MSPB. Alguard’s lawsuit sought review of those decisions. She sought damages of about $600,000.
Judge Rice had earlier dismissed Alguard’s discrimination claim of alleged disability in October of 2014, which claim had previously been denied by USDA’s EEO Office. On August 20, 2015, Judge Rice dismissed the remaining claim, which claim sought review of the MSPB’s decision that found that the USDA had legitimately reassigned Alguard when revenue at the USDA’s Yakima facility dropped. Judge Rice found that the MSPB had applied the proper standard for determining such cases, that the MSPB’s decision was not arbitrary or capricious, that the MSPB applied the law correctly, and that the MSPB’s decision was supported by substantial evidence.
Michael C. Ormsby stated, “I commend the outstanding efforts of the lawyers who defended this case. Claims of employment discrimination and whistleblowing in federal employment are taken seriously. But when lawsuits that lack merit are brought, this office will vigorously defend those suits in an effort to protect the public purse.”
This case was defended by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington, with assistance from Zoey Kohn, Marissa Suarez, and Sarah Tuck, attorneys with the USDA’s Office of General Counsel.
Federal Jury Convicts Three Members of the Ride or Die GangRead the Press Release
U.S. Attorney Kenneth Polite announced today that a federal jury has convicted DELOYD JONES, age 23, BYRON JONES, age 24, and SIDNEY PATTERSON, age 24, all of New Orleans, following an 8-day trial.
DELOYD JONES was convicted of 11 of 13 counts. Specifically, Conspiracy to Violate RICO; Conspiracy to Distribute Controlled Substances; Conspiracy to Possess Firearms; Murder in the Aid of Racketeering (2 counts – murders of Devin Hutton and Corey Blue); Causing Death through the Use of a Firearm (2 counts); Assault with a Dangerous Weapon in Aid of Racketeering (2 counts); Use, Carrying, and Discharge of a Firearm during and in Relation to a Crime of Violence and a Drug Trafficking Crime (2 counts). DELOYD JONES faces life plus 35 years in prison.
BYRON JONES was convicted of 9 of 9 counts. Specifically, Conspiracy to Violate RICO; Conspiracy to Distribute Controlled Substances; Conspiracy to Possess Firearms; Murder in the Aid of Racketeering (murder of Travis Arnold); Causing Death through the Use of a Firearm; Assault with a Dangerous Weapon in Aid of Racketeering (2 counts); Use, Carrying, and Discharge of a Firearm during and in Relation to a Crime of Violence and a Drug Trafficking Crime (2 counts). BYRON JONES faces life plus 35 years in prison.
SIDNEY PATTERSON was convicted of 7 of 11 counts, Specifically, Conspiracy to Violate RICO; Conspiracy to Distribute Controlled Substances; Conspiracy to Possess Firearms; Murder in the Aid of Racketeering (murder of Corey Blue); Causing Death through the Use of a Firearm; Assault with a Dangerous Weapon in Aid of Racketeering; Causing Death Through the Use of a Firearm. PATTERSON faces life plus ten years in prison.
U.S. District Judge Susie Morgan set sentencing for December 10, 2015 at 2:00 pm.
“These defendants were responsible for terrorizing the St. Roch community through drug trafficking, threats, and gun violence,” stated U.S. Attorney Polite. “As a result of the MAG Unit’s collaborative efforts, these violent defendants will now spend the rest of their lives in prison. Today’s guilty verdicts are a message to all other violent criminals in our area – like these defendants, you will soon be held accountable for your criminal actions.”
ATF Special Agent In Charge Constance Hester stated, "It is evident, based on the outcome of this trial, that ATF as well as all of our law enforcement partners will vigorously investigate and seek the prosecution of violent criminals in possession of firearms that continually plague the innocent citizens of the New Orleans Metropolitan area."
“We made a commitment to work together to go after the most violent criminals in our city and we continue to deliver on that promise,” said NOPD Superintendent Michael Harrison. “Today’s verdict is the result of a strategic and organized partnership among local, state and federal law enforcement to combat violent crime. I am proud of the hard work of the NOPD-led Multi-Agency Gang Unit that led to this conviction. We will not back down. We will continue to relentlessly pursue those who choose to commit acts of violence and bring them to justice.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Nolan Paige, Marquest Meeks and Special Assistant United States Attorney Brian Ebarb were in charge of the prosecution.
Federal Grand Jury Files Superseding Indictment Charging Andrew Steven Romero with New Offenses Arising Out of Armed Robberies in April and May 2015Read the Press Release
ALBUQUERQUE – A federal grand jury has returned a superseding indictment that adds new charges against Andrew Steven Romero, 28, of Albuquerque, N.M., which arise out of the armed robberies of two Albuquerque-area businesses involved in interstate commerce.
The filing of the superseding indictment was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Romero initially was charged with violating the federal firearms laws in a criminal complaint filed on May 29, 2015. The complaint alleged that Romero unlawfully possessed a firearm and ammunition on May 25 and May 26, 2015, in Bernalillo County, N.M. At the time, Romero was prohibited from possessing either firearms or ammunition because he previously has been convicted of multiple felony offenses, including voluntary manslaughter, tampering with evidence, aggravated assault with a deadly weapon, contributing to the delinquency of a minor, possession of a destructive device by a felon, heroin trafficking, and receiving or transferring a motor vehicle.
On June 9, 2015, a federal grand jury filed a one-count indictment charging Romero with being a felon in possession of a firearm on May 25, 2015, in Bernalillo County. The superseding indictment adds four new counts to the original indictment. Two of the new counts charge Romero with violating the Hobbs Act by robbing two businesses engaged in interstate commerce. The other two new counts charge Romero with brandishing firearms during crimes of violence.
According to the superseding indictment, Romero allegedly committed the armed robbery of the CVS Pharmacy located at 7900 Central Avenue in Albuquerque on April 6, 2015. It also alleges that Romero committed the armed robbery of the Giant convenience store and gas station located at 924 Rio Grande Blvd. NW in Albuquerque on May 26, 2015. Romero allegedly brandished firearms at employees of the two businesses during the two armed robberies.
Romero was arrested on May 26, 2015, on related State charges and is currently in State custody. He will be transferred to federal custody to answer to the federal superseding indictment.
Romero faces up to ten years in federal prison if convicted of being a felon in possession of a firearm. If the court determines that Romero is an armed career criminal, he faces an enhanced sentence of a mandatory minimum of 15 years in prison to a maximum of life imprisonment on that charge. Romero also faces a statutory maximum penalty of 20 years in prison on each of the two Hobbs Act charges. If convicted of brandishing firearms during the robberies, Romero faces a mandatory minimum of seven years for the April 2015 robbery and a mandatory minimum of 25 years for the May 2015 robbery; these sentences must be served consecutive to any sentence imposed on the felon in possession charge and the Hobbs Act charges.
Charges in criminal complaints and indictments are merely accusations. Defendants are presumed innocent unless found guilty in a court of law.
Assistant U.S. Attorneys Kimberly A. Brawley and Jon K. Stanford are prosecuting the federal case, which was investigated by a multi-jurisdictional team that includes the Albuquerque offices of the FBI and ATF, APD and the Multi-Agency Officer Involved Shooting Task Force, which is comprised of officers from APD the Bernalillo County Sheriff’s Office, the New Mexico State Police and the Rio Rancho Police Department. The 13th Judicial District Attorney’s Office assisted in the investigation of the federal case.
Romero is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Federal Court Sentences Muscatine Man for Conspiracy to Distribute CocaineRead the Press Release
DAVENPORT, IA- On August 26, 2015, Pedro Cabrera Lopez, Jr. aka Pedro Lopez Cabrera, Jr., age 39, of Muscatine, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to 120 months in prison on a charge of conspiracy to distribute a controlled substance, announced United States Attorney Nicholas A. Klinefeldt. Cabrera Lopez was also ordered to serve four years of supervised release following the period of imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning about June 2006 and continuing to about July 2007, Cabrera Lopez and his co-conspirators distributed large amounts of cocaine to individuals in Muscatine. The quantity of cocaine distributed in the conspiracy exceeded 2 kilograms.
After he was indicted, Cabrera Lopez went to Mexico for approximately seven years until he was arrested in Texas in November of 2014, and extradited back to Iowa. Cabrera Lopez pleaded guilty on April 22, 2015, to the charge of conspiracy to distribute at least 500 grams of a mixture or substance containing cocaine.
This matter was investigated by the Drug Enforcement Administration and the Muscatine County Drug Task Force, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Ely Man Pleads Guilty to Being an Eight-Time Felon and Unlawful Drug User in Possession of a FirearmRead the Press Release
A man who unlawfully possessed a shotgun pled guilty today in federal court in Cedar Rapids. Matthew Robbins, age 42, from Ely, Iowa, was convicted of one count of being a felon and unlawful drug user in possession of a firearm.
In a plea agreement, Robbins admitted that in 2014 he was an unlawful user of controlled substances, including methamphetamine, and had been convicted of eight felony offenses, namely:
- Conspiracy to Commit Robbery in the Second Degree (Sept. 6, 1991);
- Burglary in the Third Degree (Feb. 10, 1995);
- Dominion and Control of a Firearm as a Felon (Feb. 10, 1995);
- Operating While Intoxicated, Third Offense (Mar. 1, 1995);
- Possession with Intent to Deliver a Controlled Substance (Dec. 4, 1998);
- Operating While Intoxicated, Third Offense (Aug. 29, 2007);
- Attempt to Elude (Aug. 29, 2007); and
- Operating While Intoxicated, Third Offense (April 4, 2013).
Robbins admitted that, in about the Spring of 2014, he took possession of an Iver Johnson, 12 gauge shotgun. The shotgun had been left at Robbin’s residence near Ely, Iowa, located in the Northern District of Iowa, by another person. Robbins later had a friend store the shotgun at the friend’s residence for safekeeping.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Robbins remains in custody of the United States Marshal pending sentencing. Robbins will be sentenced to ten years’ imprisonment, unless he is determined to be an Armed Career Criminal based on his criminal history. If he is an Armed Career Criminal, Robbins will be sentenced to fifteen years’ imprisonment. Robbins also faces a possible maximum fine of $250,000, $100 in special assessments, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and Special Assistant United States Attorney Erin Eldridge. The case was investigated by the Marion Police Department, Linn County Sheriff’s Office, Iowa Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-129-MWB.
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Elmira Man Sentenced to 188 Months in Federal Prison for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Shannon T. Lewis, 41 of Elmira, NY, who was convicted of production of child pornography, was sentenced to 188 months in prison by U.S. District Court Judge Charles J. Siragusa. The defendant was also placed on supervised release for a period of 30 years and was required to register as a sexual offender. The Court also ordered that the defendant forfeit the digital materials used commit the crime.“This defendant is currently serving two and a half years in state prison on a rape conviction,” said U.S. Attorney Hochul. “Under federal law, Lewis was sentenced to more than 15 years for recording his sexual abuse of a minor. I applaud the diligent investigation conducted by the FBI and Elmira Police Department which led to a successful prosecution and today’s end result.”
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that Lewis was first identified during a sexual assault investigation being conducted by the Elmira Police Department. Officers learned that the defendant harbored at risk minors who ran away from a nearby juvenile facility. While in his custody, Lewis gave the minors drugs, including bath salts. Investigators also learned that the defendant and another adult raped one of the minors, a 16 year old girl, and that Lewis videotaped the rape. Police then contacted the Corning Resident Office of the Federal Bureau of Investigation for assistance.
During the investigation, several homemade, sexually explicit videos of the child were found on the defendant’s computer. The videos showed Lewis hiding the camera in his room before bringing the child in and raping her. The defendant was also seen giving the child victim bath salts before, during, and after the rape.
Lewis was convicted of Rape in Chemung County and is presently serving a sentence of two and a half years in State Prison for that offense.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Corning Resident Office, and members of the Elmira Police Department, under the direction of Chief Michael Robertson.
Eldon Woman Indicted for Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Eldon, Mo., woman has been indicted by a federal grand jury for illegally possessing firearms.
Talissa Dawn Dummermuth, 41, of Eldon, was charged with being a felon in possession of firearms in an indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Aug. 19, 2015. That indictment was unsealed and made public today upon Dummermuth’s arrest and initial court appearance. She remains in federal custody pending a detention hearing.
The federal indictment alleges that Dummermuth was in possession of a Hawes .22-caliber pistol, a Ruger .22-caliber revolver and a Smith & Wesson semi-automatic pistol on July 22, 2015.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Dummermuth has a prior felony conviction for selling methamphetamine.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Columbia, Mo., Police Department, the Miller County, Mo., Sheriff’s Department and the Eldon, Mo., Police Department.
El Paso Businessowner Admits Role in Money Laundering Scheme Associated with Black Market Peso ExchangeRead the Press Release
On the 4th day of his federal trial in El Paso, 52-year-old Jose Luis Rodriguez, owner of ERENE, Inc. (ERENE) pleaded guilty to orchestrating an estimated $100 million trade-based money laundering scheme announced United States Attorney Richard Durbin, Jr., Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez.
ERENE, formerly doing business as “J&E Sports” among other names, is an El Paso-based business which primarily sells shoes and other goods to U.S. and Mexican-based customers.
Yesterday afternoon, Rodriguez pleaded guilty to one count of conspiracy to commit money laundering. By pleading guilty, Rodriguez admitted that he and others conspired to launder the proceeds of a scheme to illegally smuggle millions of dollars worth of goods into Mexico without paying the tariffs, duties, and fees imposed by the Mexican government. From March 6, 2006 to November 2014, these goods were ultimately smuggled using “pasadores” or black market smugglers and were done so without following the U.S. laws and regulations applicable to the export of goods from the United States. Evidence presented during trial also revealed that between 2012 and 2014, more than an estimated $2.3 million in bribes were paid to Mexican customs officials to facilitate the scheme.
Rodriguez, who faces up to 20 years in federal prison, is expected to be sentenced in approximately 60 to 90 days. Two co-defendants--40–year-old ERENE Assistant Manager Jorge Penuelas, and 53-year-old ERENE employee Manuel Rodriguez—entered guilty pleas to the conspiracy charge prior to jury selection. They each face up to 20 years imprisonment when they are scheduled to be sentenced on September 15, 2015.
This investigation was conducted by the HSI’s Financial Operations & Currency Unified Strikeforce (FOCUS). FOCUS is comprised of investigators from HSI, IRS – Criminal Investigation (IRS-CI), U.S. Postal Inspection Service (USPIS), Customs and Border Protection – Office of Field Operations (CBP-OFO) and the El Paso Police Department. The Government of Mexico Servicio de Administracion Tributaria (SAT) also assisted in this investigation. The case is being prosecuted by Assistant United States Attorneys Joseph Blackwell and John Gibson.
EDF Resources Capital Inc. and CEO Pay $6 Million for Alleged Violations Related to Small Business Administration Loan ProgramRead the Press Release
EDF Resource Capital Inc. and its CEO, Frank Dinsmore, have agreed to resolve allegations that they violated the False Claims Act and otherwise failed to remit payments owed to the Small Business Administration (SBA) under the 504 loan program, the Department of Justice announced today. Under the settlement agreement, EDF and Dinsmore have agreed to make payments and turn over certain assets to the United States for a total settlement of approximately $6 million.
“Today’s settlement demonstrates our commitment to ensure that companies and individuals who elect to participate in federal programs live up to their statutory and contractual commitments, play by the rules, and deal honestly and openly with the federal government,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work side-by-side with the Small Business Administration to ensure that fraud committed by SBA program participants is thoroughly investigated and, where appropriate, vigorously prosecuted.”
The SBA 504 loan program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. Under the program, local lenders like EDF are responsible for arranging, servicing and collecting on these small business loans, which are guaranteed, in part, by the SBA. In return for the authority to make determinations on 504 loans without prior SBA approval, EDF was required to bear a share of any losses suffered by the SBA on such loans and to maintain a loan loss reserve fund (LLRF) to help ensure payment of its loss-sharing obligations.
Today’s settlement resolves claims that EDF and Dinsmore violated the False Claims Act in connection with EDF’s failure to maintain adequate reserves in its LLRF. EDF allegedly was required to fund its LLRF at a level determined by the riskiness of its 504 loan program portfolio yet knowingly concealed from the SBA hundreds of troubled loans to avoid its obligation to fully fund its LLRF.
The settlement also resolves a lawsuit filed by the United States against EDF and a related entity, Redemption Reliance LLC, alleging that EDF failed to remit required payments to the SBA to satisfy its loss-sharing obligations. The lawsuit also alleges that the SBA agreed to advance funds to EDF in connection with certain defaulted 504 loans but that, after EDF assigned the loan documents for these loans to Redemption Reliance, neither EDF nor Redemption Reliance remitted the monies owed on these loans to the SBA.
“The 504 Loan Program provides small businesses with access to the capital they need to start, grow and succeed,” said General Counsel Melvin F. Williams Jr. of the SBA. “SBA has no tolerance for fraud, waste, or abuse by participants in the 504 Loan Program. Working with the attorneys at the Department of Justice and SBA’s Office of Inspector General, this settlement marks the successful conclusion of a major enforcement action.”
“The defendants’ misrepresentations to SBA knowingly put the taxpayer’s money at risk,” said Inspector General Peggy E. Gustafson of the SBA. “As stewards of the taxpayers’ money, the SBA must guard against losses within its loan portfolios. In this instance, the actions of the defendants did not allow SBA to protect taxpayers from such losses. I want to thank the Department of Justice and our investigative partners for achieving this settlement.”
The settlements were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the SBA’s Office of General Counsel and the SBA’s Office of Inspector General Los Angeles Field Office’s Counsel Division and Investigations Division.
The lawsuit is captioned United States v. EDF Resource Capital, Inc., et al., Case No. 13‑cv-389 (E.D. Cal.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Defendant Sentenced for Conspiring to Provide Material Support to Foreign Terrorist OrganizationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), announce that Mohamed Hussain Said, 27, a citizen and resident of Nairobi, Kenya, was sentenced to fifteen years in prison by U.S. District Judge Ursula Ungaro, for conspiring to provide material support to three separately designated Foreign Terrorist Organizations, al-Qa’ida, al-Qa’ida in Iraq/al-Nusrah Front (“AQI/al-Nusrah Front”), and al-Shabaab.
On May 28, 2015, Said pled guilty to Count 1 of an Indictment charging him with conspiracy to provide money and recruits to al-Qa’ida, AQI/al-Nusrah Front in Syria, and al-Shabaab in Somalia. During the conspiracy, Said received a series of wire transfers from co-conspirator Gufran Ahmed Mohammed for the purpose of supporting al-Shabaab, and recruited experienced al-Shabaab fighters for AQI/al-Nusrah Front to fight in the conflict in Syria. Additionally, Said tried to recruit other individuals for attacks within the United States.
Mr. Ferrer commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Brian K. Frazier and Ricardo A. Del Toro and Trial Attorney Jolie F. Zimmerman from the Counterterrorism Section of the Justice Department’s National Security Division.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Dallas Attorney and Family Members in Federal Custody for Allegedly Committing Health Care Fraud, Theft of Government Funds and Mail FraudRead the Press Release
DALLAS — After his arrest today, Dallas attorney Tshombe Anderson remains in federal custody, along with his wife Brenda Anderson and his sister Lydia Bankhead, on charges outlined in a federal criminal complaint stemming from a scheme they ran to fraudulently obtain more than $22 million from the Department of Labor (DOL) Office of Worker’s Compensation Program (OWCP), announced U.S. Attorney John Parker of the Northern District of Texas.
Tshombe Anderson, 52, was arrested today, and his wife was arrested on Wednesday in Dallas. Bankhead was also arrested on Wednesday in Russellville, Arkansas. Brenda Anderson, 45, and Bankhead, 61, each made their initial appearance before a U.S. Magistrate Judge, and both are scheduled for detention hearings next week. Tshombe Anderson will make his initial appearance in federal court on Monday, August 31, 2015, before U.S. Magistrate Judge Paul D. Stickney.
According to the complaint, unsealed today, Tshombe Anderson worked as an attorney for Union Treatment Center (Union), a treatment and rehab center with offices in Austin, Corpus Christi, Killeen and San Antonio, Texas, from approximately February 2010 to May 2011. Union specialized in treating injured state and federal worker’s compensation patients. In February 2010, Brenda Anderson also began working for Union, and shortly thereafter, she formed Best First Administration (BFA) Durable Medical Equipment (DME) of Austin, which became Union’s “in-house” DME provider.
In general, according to the complaint, a Union doctor would provide Brenda Anderson with a prescription for a patient’s DME items, and she would then send the prescribed DME to the patient. BFA billed OWCP and deposited the payment for the DME into BFA’s designated bank account.
However, in May 2011, Union fired Tshombe and Brenda Anderson because an audit revealed they appeared to be engaging in fraudulent billing practices, according to the complaint. The following month, Union created their own “in-house” DME company to provide patients with necessary treatment supplies. Brenda Anderson and BFA, however, retained patient records and identifying information and used that information to continue to bill OWCP for unrequested and/or unnecessary DME sent to Union patients.
In January 2013, Tshombe Anderson formed Union Medical Supplies & Equipment, LLC (UMSE), which records indicate was managed by Lydia Bankhead and their mother. In April 2013, USME began fraudulently billing OWCP for DME delivered to the same Union patients as BFA. In January 2014, USME changed its address with OWCP from 327 Cedar Creek Drive in Duncanville, Texas, to 2606 Martin Luther King Jr. Blvd., in Dallas, an address located next door to The Law Office of Tshombe A. Anderson, LLC, located at 2604 Martin Luther King Jr. Blvd., in Dallas. Every DME transaction billed by UMSE since its formation appears to be fraudulent.
In May 2013, Tshombe Anderson formed Sky-Care Medical Supplies & Equipment, LLC (SMSE). Records list Tshombe Anderson’s sister-in-law as SMSE’s Manager. In August 2013, SMSE began billing OWCP for the same patients as BFA and UMSE; every DME transaction billed by SMSE since its formation appears to be fraudulent.
In January 2014, Tshombe Anderson formed American Federal Union Claims Advocates, LLC (AFUCA). Tshombe Anderson is listed as the only managing member of this company, and the company’s address is the same as that of his law office.
OWCP billing records from January 2011 through April 9, 2015, indicate that 292 patient claim numbers were filled by at least one of the Andersons’ three DME companies.
From April 11, 2013 through April 9, 2015, USME billed approximately $22,498,085 and was paid $19,573,704 by OWCP for DME that was not needed or requested by the patient or the doctor treating the patient.
From August 7, 2013 through April 9, 2015, SMSE billed approximately $1,833,895 and was paid $1,706,848 by OWCP for DME that was not needed or requested by the patient or the doctor treating the patient.
A federal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for both health care fraud and theft of government funds is 10 years in federal prison and a $250,000 fine. The maximum statutory penalty for mail fraud is 20 years in federal prison and a $250,000 fine.
The DOL Office of Inspector General and the U.S. Postal Service Office of Inspector General are investigating. Special Assistant U.S. Attorney Danial Gividen and Assistant U.S. Attorneys Aaron Wiley and Lea Carlisle are in charge of the prosecution.
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Criminals Arrested with Guns in Baltimore City to Face Federal Charges in Fourteen Separate CasesRead the Press Release
Baltimore, Maryland – Fourteen defendants arrested with illegal guns in Baltimore this summer will now face federal charges as a result of an alliance between local and federal officials. The names of the defendants will be disclosed when they are transferred from state custody to federal court next week.
Under an initiative by the Baltimore City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baltimore City State’s Attorney’s Office and the United States Attorney’s Office, prosecutors and police review cases of defendants arrested for firearms violations and evaluate whether the case should be considered for federal prosecution. Prosecutors evaluate each defendant’s criminal record, the circumstances of the arrest and other relevant information.
“If you have a criminal record and possess a gun, be prepared to spend many years in a federal prison far from home,” said U.S. Attorney Rod J. Rosenstein. “Police and prosecutors are working to identify armed criminals who deserve to be prosecuted in federal court.”
Any previously convicted criminal who possesses a gun faces a sentence of up to ten years in federal prison, even if the criminal did not use the gun. There is no probation or parole in the federal criminal justice system.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Convicted killer sentenced to 15 years in prison for having gun and body armorRead the Press Release
A Boardman man was sentenced to more than 15 years in prison for illegally possessing a firearm and body armor, law enforcement officials said.
Akira O. Jackson, 33, pleaded guilty earlier this year to two counts in federal court -- being a felon in possession of a firearm and being a felon in possession of a ballistic vest. He was sentenced to 188 months in federal prison.
On March 18, Jackson possessed body armor, a .40-caliber pistol and ammunition. Jackson was forbbiden by law from possessing these items because of prior convictions, including conspiracy to commit voluntary manslaughter, possession of a firearm by a felon, possession with intent to distribute marijuana and an additional conviction for possession of a firearm by a felon, according to court documents.
"This is a well-deserved sentence for a violent person who has no business carrying a firearm," said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
This case was prosecuted by Assistant U.S. Attorney Adam Hollingsworth following an investigation by ATF and the Boardman Police Department.
Con Man Who Defrauded Healthcare Companies Sentenced to 5 Years in Federal PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Court Judge John W. DeGravelles sentenced LARRY D. BUTLER, age 50, of Baton Rouge, Louisiana, to sixty (60) months in federal prison as a result of his scheme to defraud two of his former employers. BUTLER was also ordered to make restitution in the amount of $118,806.98 to his victims, and to serve a three-year term of supervised release following his release from imprisonment. At the sentencing hearing, Judge DeGravelles noted BUTLER’s significant criminal history and the nature of his criminal actions.
On January 9, 2015, BUTLER was convicted of wire fraud, in violation of Title 18, United States Code, Section 1343, and false representation of a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(b). His convictions stem from his scheme to defraud the Louisiana Health Cooperative, Inc., and the Mary Bird Perkins Cancer Center, from July 2013 through August 2014. Specifically, BUTLER used false credentials, a false social security number, and other false documentation, to conceal his significant criminal history and thereby obtain the pay and benefits associated with being employed by the victim non-profit organizations. BUTLER also misused company credit cards for personal expenses, including furniture, travel, and meals. Through his schemes, BUTLER fraudulently obtained nearly $119,000.
United States Attorney Walt Green stated: “This case demonstrates the damage that can be wrought by fraudsters who deceive good, hardworking people to obtain undeserved employment and then abuse their positions to steal more. This sort of conduct not only causes financial injury to the employers, it victimizes their honest employees. In this case, the fraudulent conduct is particularly egregious, given the noble missions of these victims to provide affordable health care and to treat and fight cancer. My office will continue to vigorously prosecute individuals who defraud and steal from our employers. I appreciate the great work performed in this case by the prosecutors, the U.S. Secret Service, the Baton Rouge Police Department, and the Mississippi Department of Corrections, along with the cooperation of the District Attorney’s Office for the Nineteenth Judicial District.”
This matter was prosecuted by Assistant United States Attorneys Ryan R. Crosswell and Alan A. Stevens, who serves as a Deputy Criminal Chief. This matter was investigated by the U.S. Secret Service and the Baton Rouge Police Department, with valuable assistance provided by the Mississippi Department of Corrections.
Columbus Man Pleads Guilty to Marijuana, Money Laundering, Gun ChargesRead the Press Release
COLUMBUS, Ohio – Richard Spriggs, Sr., 47, of Columbus, pleaded guilty in U.S. District Court to conspiracy to possess with intent to distribute marijuana, conspiracy to commit money laundering and unlawful possession of a firearm.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Agency (DEA), Kathy A. Enstrom. Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office and Columbus Police Chief Kim Jacobs, announced the plea entered into yesterday before U.S. Magistrate Judge Terence P. Kemp.
According to court documents, Spriggs and others in an organization were responsible for distributing multiple kilograms of marijuana by use of Ohio residences, business fronts, commercial freight, semi tractor-trailers and vehicles. Spriggs and others transported marijuana to various places in Columbus, Ohio from suppliers in Houston, Texas. The drug shipments were disguised as hair care products, beauty supplies and whole grain rice.
Spriggs used the drug proceeds to purchase at least two residences by paying cash. He used pre-paid debit cards which he funded in another person’s name as his personal credit card, buying air travel, rental vehicles and cellular telephone bills.
Spriggs pleaded guilty to one count of possession with intent to distribute marijuana, one count of money laundering and one count of unlawful possession of a firearm by a convicted felon.
The marijuana charge carries a potential maximum sentence of 40 years imprisonment, and conspiracy to commit money laundering and unlawful possession of a firearm each carry a potential maximum sentence of 10 years in prison.
Spriggs has agreed to forfeit approximately $86,000 in cash, firearms and ammunition.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Stewart commended the cooperative investigation by law enforcement, as well as Assistant United States Attorney Kenneth F. Affeldt, who is representing the United States in this case.
Chattanooga Pill Mill Operator Sentenced to 280 Years in PrisonRead the Press Release
CHATTANOOGA, Tenn. – On August 27, 2015, Barbara Lang, a.k.a. “Aunt Bea,” 61, of Rossville, Ga., was sentenced by the Honorable Curtis L. Collier, U.S. District Judge, to serve 280 years in federal prison.
After a 25-day trial that spanned almost three months, Lang was convicted of two counts of conspiring to distribute and dispense Schedule II and IV controlled substances, outside the scope of professional practice and not for a legitimate medical purpose; five counts of maintaining a premises for the purpose of distributing controlled substances; and fourteen counts of structuring financial transactions to evade reporting requirements.
Lang was charged along with three other individuals. Her daughter, Faith Blake, pleaded guilty to conspiring to illegally distribute drugs through Superior One medical clinic, a business she operated with her mother. Blake also pleaded guilty to conspiring to illegally distribute drugs through Elite Care, another Chattanooga pain clinic that she operated. Additionally, she pleaded guilty to obstructing the Internal Revenue Service (IRS) and failure to appear for a federal court proceeding. Sentencing for Blake is set for 9:00 a.m., October 1, 2015, in U.S. District Court in Chattanooga.
Dr. Jerome Sherard, Superior One’s medical director, pleaded guilty to conspiring to illegally distribute drugs at Superior One Medical Clinic and at the Sherard Clinic, his own practice. Sherard was sentenced to serve five years in federal prison. Sherard was also ordered to forfeit $192,956.31 to the United States.
Charles Larmore, a nurse practitioner employed by Lang at Superior One and Primary Care, pleaded guilty to conspiring to illegally distribute drugs at both those clinics. Larmore was sentenced to serve 13 years in federal prison. Larmore was also fined $20,000 and ordered to forfeit $375,829.20 to the United States.
“We are very pleased with this very lengthy sentence given to this defendant, who disbursed these very addictive drugs to many people over a long period of time. Illegal opioid pain medication distribution organizations, such as this, contribute to an epidemic of addiction in the United States. We thank the cooperative work of the federal, state and local agencies, who investigated this case and participated in this very lengthy trial. She will never be able to participate in the illegal distribution of prescription drugs again,” said U.S. Attorney Bill Killian.
Daniel R. Salter, Special Agent in Charge, Drug Enforcement Administration (DEA), Atlanta Division stated, “The dispensing of addictive prescription pain medication under the guise of a doctor’s care is not about the good of the community or an individual’s specific health needs; it is about greed and those involved in “pill mill” activity are in fact drug dealers. The sentencing of this defendant makes the Chattanooga area a safer place today.”
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Lang, Blake, Sherard and Larmore included: the Drug Enforcement Administration (DEA); IRS - Criminal Investigation; Tennessee Bureau of Investigation; Hamilton County Sheriff’s Office; Chattanooga Police Department; Roane County Sheriff’s Department; and Rockwood Police Department. Assistant U.S. Attorneys Gregg L. Sullivan and Michael D. Porter represented the United States at trial. Assistant U.S. Attorney Tracy Stone prosecuted other individuals involved in the drug conspiracies.
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Attempting to Export Ammunition to Mexico Sends Woman to Federal PrisonRead the Press Release
BROWNSVILLE, Texas - A 53-year-old resident alien from Mexico who resided in Brownsville, has been ordered to federal prison following her conviction of attempting to export 3,500 rounds of ammunition and one AK-47 rifle, announced U.S. Attorney Kenneth Magidson. Rosa Maria Melendez-Jimenez was convicted in May 2015, following a three-day trial and less than two hours of deliberation.
Today, U.S. District Judge Andrew S. Hanen, who presided over the trial, handed Melendez-Jimenez a total sentence of 78 months in federal prison. Melendez-Jimenez is expected to face deportation proceedings following her release from prison.
During trial, the jury heard that law enforcement suspected that a possible unlawful exportation of ammunition was going to occur at the Gateway International Bridge. Investigators conducted surveillance there and stopped Pedro Ramirez-Aguirre who was in possession of a dolly loaded with two black duffle bags. The bags were found to contain a total of 2,500 rounds of 7.62 x 39 mm caliber ammunition, 1,000 rounds of .223 caliber ammunition, one AK-47 rifle, one large capacity .223 rifle magazine, two 7.62 x 39 mm rifle magazines and tactical gear.
Law enforcement followed the vehicle that dropped Ramirez-Aguirre off at the bridge which led them to the home of Melendez-Jimenez. The investigation continued and agents soon recovered a third duffle bag in the alley behind her home. That bag was found to contain 2,500 rounds of 7.62 x 39 mm caliber ammunition.
Melendez-Jimenez admitted she had received all three bags with the intent of delivering them to Ramirez-Aguirre for unlawful exportation to Mexico.
Melendez-Jimenez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by Homeland Security Investigations and the Cameron County Sheriff’s Office. Assistant U.S. Attorneys Israel Cano III and David Coronado are prosecuting the case.
Amherst Woman Sentenced for Bank RobbreyRead 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 Sheila Cassata, 48, of Amherst, NY, who was convicted of bank robbery, was sentenced to 37 months in prison followed by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on December 26, 2013, co-defendant Michael Mitchell entered the First Niagara Bank on Lyell Avenue in Rochester, NY and passed the teller a demand note threatening the use of weapon. The bank teller froze, Mitchell left without money, and got into a car driven by Cassata who drove Mitchell from the area.
On December 27, 2013, Michael Mitchell entered the KeyBank on Amherst Street in Buffalo and passed the teller a demand note and once again threatened the use of weapon. Mitchell received some money, left the bank and again got into a car driven by Cassata.
Two more similar bank robberies occurred on January 3, 2014 at the M&T Bank on Grant Street in Buffalo and on January 9, 2014 at the First Niagara Bank on Abbott Road in Lackawanna, NY.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lackawanna Police Department, under the direction of Chief James Michel, and Rochester Police Department, under the direction of Chief Michael Ciminelli.
Alabama Resident and U.S. Postal Worker Indicted in Stolen Identity Tax Refund Fraud Scheme Claiming More than $1.5 Million in RefundsRead the Press Release
An Alabama resident and U.S. Postal Service (USPS) employee was arrested today after being indicted by a grand jury sitting in Montgomery, Alabama, on one count of conspiracy to defraud the United States, 14 counts of mail fraud, 14 counts of aggravated identity theft and 14 counts of embezzling mail, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
According to the allegations in the indictment, Elizabeth Grant of Seale, Alabama, was a USPS mail carrier. In 2013, Grant became involved in a stolen identity tax refund fraud conspiracy. Grant’s co-conspirators obtained stolen personal identification information from several sources, including from an Alabama state database, and then prepared and filed false federal income tax returns for tax year 2012. The co-conspirators directed the tax refund checks from the U.S. Treasury to be mailed to addresses located on Grant’s postal route. Grant would then be paid a fee to provide the checks to her co-conspirators. The conspirators allegedly filed more than 700 false returns that claimed more than $1.5 million in refunds.
If convicted, Grant faces a statutory maximum sentence of 10 years in prison for the conspiracy count, 20 years in prison for each count of mail fraud, five years in prison for each count of embezzling mail and a mandatory minimum sentence of two years in prison for aggravated identity theft. She also faces substantial monetary penalties and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation and the USPS Office of the Inspector General, who investigated the case, and Trial Attorneys Michael C. Boteler, Gregory Bailey and Robert J. Boudreau of the Tax Division and Assistant U. S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting this case.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
18 Sentenced to Federal Prison for Roles in Austin-Based Drug Distribution OperationRead the Press Release
In Austin, 18 individuals have been sentenced over the past two days to federal prison terms for their roles in a cocaine and methamphetamine distribution operation announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
United States District Judge Sam Sparks sentenced:
Rene Perez, 35, of Austin, to 324 months imprisonment followed by five years of supervised release;
Mario Gonzalez, 35, of Austin, to 235 months imprisonment followed by five years of supervised release;
David Depaz, 22, of Austin, to 168 months imprisonment followed by five years of supervised release;
Gerardo Diaz, 24, of Austin, to 57 months imprisonment followed by three years of supervised release;
Ricardo Cruz, 27, of Pharr, TX, to 97 months imprisonment followed by five years of supervised release;
Juan Gonzalez, 28, of Austin, to 120 months imprisonment followed by five years of supervised release;
Joel Avilez-Jaimes, 39, of Austin, to 18 months imprisonment followed by five years of supervised release;
Arthur Villalobos, 35, of Taylor, TX, to 70 months imprisonment followed by four years of supervised release;
Alvaro Salinas, 46, of Austin, to 41 months imprisonment followed by four years of supervised release;
Francisco Lopez, 38, of Austin, to 135 months imprisonment followed by five years of supervised release;
Javier Tejeda, 25, of Austin, to 84 months imprisonment followed by five years of supervised release;
Fernando Tejeda, 32, of Austin, to 135 months imprisonment followed by five years of supervised release;
Efren Dias, 29, of Austin, to 262 months imprisonment followed by five years of supervised release;
Jose Nieto-Figueroa, 24, of Pflugerville, TX, to 30 months imprisonment followed by five years of supervised release;
Alejandro Rodriguez, 41, of Austin, to 51 months imprisonment followed by five years of supervised release;
Timothy Cooper, 50, of Debray, FL, to 41 months imprisonment followed by four years of supervised release;
Rogelio Villanueva, 35, of Austin, to 60 months imprisonment followed by five years of supervised release;
and, James Yerkes, 47, of Austin, to 87 months imprisonment followed by five years of supervised release.In addition, Judge Sparks sentenced a 19th defendant in this case, 32-year-old Veronica Deleon of Taylor, TX, to three years probation after she pleaded guilty to one count of misprision of felony.
Sentencing for a 20th defendant, 24-year-old Hector Mayorga of Austin, was reset to September 3, 2015.
All of the defendants, with the exception of Deleon, pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. According to court records, these defendants were involved in a conspiracy, led by Rene Perez, to distribute cocaine and methamphetamine throughout the Austin area and elsewhere in the United States. During this investigation, authorities seized approximately 28 kilograms of cocaine and 45 kilograms of methamphetamine, three firearms and close to $100,000 in U.S. Currency.
This case resulted from an investigation conducted by the Austin High Intensity Drug Trafficking Area (HIDTA) Task Force. The Austin HIDTA Task Force is made up of investigators from the Drug Enforcement Administration, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Texas Department of Public Safety, Austin Police Department, Travis County Sheriff’s Office, Bastrop County Sheriff’s Office, Williamson County Sheriff’s Office, Hays County Sheriff’s Office, Cedar Park Police Department and the Georgetown Police Department. Assistant United States Attorneys Dan Guess and Matt Harding prosecuted this case on behalf of the Government.
Thursday 27 August 2015
Waterloo Man Convicted of Methamphetamine and Firearm ChargesRead the Press Release
A Waterloo man who conspired to distribute large quantities of methamphetamine and was a felon in possession of a firearm pled guilty yesterday in federal court in Cedar Rapids.
Derrick Plunkett, 37, from Waterloo, Iowa, was convicted of one count of conspiracy to distribute 500 grams or more of methamphetamine with a prior felony drug conviction and one count of possession of a firearm with three or more felony convictions for violent or serious drug crimes.
At the plea hearing, Plunkett admitted that he worked with others to distribute well more than 500 grams of methamphetamine in the Waterloo, Iowa, area between the spring of 2013 and May 2015. Plunkett admitted that on April 7, 2015, he was in possession of a Glock firearm and had previously been convicted of at least three felony offenses, specifically: Robbery-Second Degree and two separate cases of possession with intent to deliver methamphetamine.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Plunkett remains in custody of the United States Marshal pending sentencing. For the drug charge, Plunkett faces a mandatory minimum sentence of 20 years’ imprisonment and the following maximum penalties: (1) not more than life imprisonment without the possibility of parole; (2) a fine of not more than $20,000,000; (3) a mandatory special assessment of $100; and (4) a term of supervised release of at least 10 years to life.
For the firearms charge, Plunkett faces a mandatory minimum sentence of 15 years’ imprisonment without the possibility of parole and the following maximum penalties: (1) not more than life imprisonment without the possibility of parole; (2) a fine of not more than $250,000; (3) a mandatory special assessment of $100; and (4) a term of supervised release of not more than 5 years.
The case was prosecuted by Assistant United States Attorneys Patrick J. Reinert and Lisa Williams, and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-2035.
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Vinalhaven Man Sentenced to One Year for Making Hoax Distress CallsRead the Press Release
Contact: Jonathan R. Chapman
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Owen R. Adair, 23, of Vinalhaven, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to one year in prison, up to one year in community confinement and three years of supervised release for making false distress calls to the U.S. Coast Guard. Adair was also ordered to repay the Coast Guard $15,000 for the costs associated with the search that it conducted in response to the hoax calls. Adair pled guilty to the charge on April 15, 2015.
According to court records, on September 30, 2014, the defendant initiated a two-way radio call using a VHF radio with a radio operator at U.S. Coast Guard Sector Northern New England. In the initial radio transmission to the Coast Guard, the defendant stated: “Mayday, Mayday, Mayday.” In a lengthy conversation, the defendant then repeatedly told the Coast Guard operator that he urgently needed assistance because a crewman on his fishing vessel sustained a serious injury to his neck and was bleeding badly. The Coast Guard operator repeatedly attempted to determine the position from which the defendant was calling, but the defendant gave false location information. In fact, the defendant was not aboard a vessel, but was on Vinalhaven Island and was using a VHF radio in his truck. There was also no injured person needing assistance from the Coast Guard. The Coast Guard dispatched a search and rescue vessel from Rockland. After a seven-hour search, the Coast Guard suspended the search.
"What is important to understand about this hoax call is that lives were unnecessarily put at risk while a boat crew searched seven hours offshore for a situation that did not exist," said Rear Admiral Linda Fagan, commander, First U.S. Coast Guard District. "In addition to our Coast Guard responders, multiple agencies and individuals, including medical personnel, police dispatch, harbormasters, mariners, and the Maine Marine Patrol, devoted time and resources to this case and each made extensive preparations to assist with a case that was simply a hoax."
The case was investigated by the U.S. Coast Guard Investigative Service.
Union County Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – A Union County man was sentenced today in U.S. District Court to 25 years in federal prison for producing child pornography, announced Acting U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. Chad Landon Blume, 34, of Waxhaw, N.C., was also ordered to serve a lifetime of supervised release and to register as a sex offender. The sentence was imposed by U.S. District Judge Robert J. Conrad, Jr. of the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Union County Sheriff Eddie Cathey join Acting U.S. Attorney Rose in making today’s announcement.
According both to admissions made in connection with Blume’s guilty plea and to information introduced at sentencing, law enforcement recovered an SD Card that contained visual depictions of a minor engaging in sexually explicit conduct. Court records indicate that law enforcement determined the SD Card came from Blume’s cellular phone, which he had used to produce the child pornography on or about November 2012. During a subsequent search of Blume’s residence, agents seized Blume’s computer and other devices. A forensic analysis of those devices revealed that Blume had produced numerous sexually explicit pictures of a female minor under the age of 10. After Blume’s arrest, a second minor female came forward and disclosed that she had been molested by Blume. Blume pleaded guilty to one count of production of child pornography in December 2013.
Blume has been in federal custody since April 2013. Upon designation of a federal facility, he will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The FBI’s Crimes Against Children Squad investigated the case, assisted by the Union County Sheriff’s Office. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte handled the prosecution.
Two in Williamsport Indicted for Drug Trafficking and Firearms ViolationsRead the Press Release
WILLIAMSPORT. The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Williamsport men were indicted today by a federal grand jury for narcotics trafficking and possession of firearms in furtherance of their drug trade.
According to United States Attorney Peter Smith, the grand jury alleges that Anthony Gaskin, age 24, and Ibrahim Stevens, age 25, possessed crack cocaine and heroin in a Williamsport apartment. These narcotics were found in a 2014 surveillance and investigation of the apartment by Williamsport police that also uncovered 3 unlicensed handguns and equipment and materials to weigh and package the drugs.
Both Gaskin and Stevens face charges of Conspiracy to Distribute Controlled Substances, Possession with the Intent to Distribute Controlled Substances, Possession of a Firearm in Drug Trafficking and Possession of a Stolen Firearm. Gaskin also faces a count of Possession of a Firearm by a Felon.
The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives(ATF), the Williamsport Bureau of Police, and the Lycoming County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Geoffrey MacArthur.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years of imprisonment, a term of 4 years’ supervised release following imprisonment, and a $5 million dollar fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Trio charged for bank robberies in Parma and Parma HeightsRead the Press Release
A grand jury returned a three-count indictment related to three bank robberies in Parma and Parma Heights, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Russell C. Bowers, 29, of Lakewood, and Ashley Wentz, 23, of Parma, were each charged with three counts of bank robbery. Jason D. Spinelli, 40, of Cleveland, was charged with one count of bank robbery.
The indictment alleges that Bowers, Spinelli, and Wentz robbed the Citizens Bank, 5775 Chevy Road, in Parma, Ohio, a federally insured financial institution, on June 26, 2015.
The indictment further alleges that Bowers and Wentz robbed the Fifth Third Bank, 6809 West 130th Street, in Parma Heights, Ohio, a federally insured financial institution, on July 12, 2015; and the Citizens Bank, 6555 Pearl Road, in Parma Heights, Ohio, a federally insured financial institution, on July 17, 2015.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the Federal Bureau of Investigation, Cleveland Division, and the Parma and Parma Heights Police Departments.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Three Convicted Felons from Chicago Area Indicted on Federal Firearm OffensesRead the Press Release
CHICAGO — Three Chicago-area men with prior felony convictions have been indicted on federal gun charges for illegally possessing semiautomatic weapons.
THADDEUS JIMENEZ, 36, of Des Plaines, was arrested in Chicago last week while in possession of a loaded Kimber, Sapphire-model, .380-caliber semiautomatic pistol. He was charged with one count of being a felon-in-possession of a firearm, according to the indictment. Jimenez was previously convicted of a felony.
JOSE ROMAN, 22, of Chicago, was also arrested in Chicago last week while in possession of a firearm. The indictment charges Roman with being a felon-in-possession of a firearm for possessing a loaded Mossberg International, 715T-model, .22-caliber semiautomatic rifle. Roman was previously convicted of a felony.
The indictment against Jimenez and Roman was returned Wednesday afternoon in U.S. District Court in Chicago. Jimenez and Roman will be arraigned on a date to be set by the Court.
A third defendant, DANTRELL WILLIAMS, 19, was charged in a separate indictment with being a felon-in-possession of a firearm. Williams, of Chicago, was arrested while in possession of a loaded Romarm, GP WASR-series, semiautomatic rifle, according to the indictment, which was also returned Wednesday. He was previously convicted of a felony. Williams is currently scheduled to appear for a detention hearing on Friday at 11:00 a.m. before U.S. Magistrate Judge Jeffrey T. Gilbert.
The charge of being a felon-in-possession of a firearm carries a maximum sentence of ten years in federal prison and a $250,000 fine.
“The United States Attorney’s Office is committed to aggressively using federal gun laws to fight violent crime,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “We will prosecute violent offenders with vigor, using whatever federal tools are appropriate, as part of our ongoing partnership with the city and state to protect Chicago’s neighborhoods against violence.”
Mr. Fardon announced the indictments along with Jeffrey A. Magee, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Garry F. McCarthy, Superintendent of the Chicago Police Department.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorneys Kathryn Malizia and Michelle Petersen.
Jimenez & Roman Indictment
Williams Indictment
Tennessee man charged with child sex exploitationRead the Press Release
A grand jury returned a four-count indictment charging David K. Turner, of Knoxville, Tennessee, with engaging in illicit sexual conduct with a minor, distributing a visual depiction of a minor engaged in sexually explicit conduct, coercion and enticement of a minor, and travel with intent to engage in illicit sexual conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Canton Resident Agency and the Massillon Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Statement of U.S. Attorney Preet Bharara on April 21, 2015, Death of Samuel Harrell, an Inmate at Fishkill Correctional FacilityRead the Press Release
“My Office has been in communication with the office of Dutchess County District Attorney William Grady, and we will be coordinating and working with his office to investigate the April 21, 2015 death of Samuel Harrell, an inmate at Fishkill Correctional Facility.”
Southside York Gang Leader Enters Guilty Plea to Racketeering ConspiracyRead the Press Release
HARRISBURG - A leader of the “Southside Gang” located in York, Pa. pled guilty to racketeering and drug trafficking conspiracy today before U.S. Magistrate Judge Karoline Mehalchick in Scranton.
According to United States Attorney Peter Smith, James Abney, a/k/a “Doocs”, age 29, of York, pled guilty as the parties prepare for a jury trial scheduled for September 21, 2015.
On September 17, 2014, a federal indictment was brought by a grand jury in Harrisburg charging 21 one members of the Southside Gang with racketeering and drug trafficking conspiracy. In the indictment, the Southside Gang is identified as an alleged criminal enterprise whose purpose is to protect its territory and power through intimidation, violence and threats, generate profits primarily through open-air drug dealing within its territory and violent crime, defend and retaliate on behalf of gang members, and assist members through retaliation against witnesses and thwarting efforts of law enforcement.
According to the U.S. Attorney’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Essam E. Rabadi, the racketeering conspiracy indictment was the result of a two-year combined investigation by ATF, York City Police Department and the York County District Attorney’s Office with participation by the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, and the Federal Bureau of Investigation.
Assistant U.S. Attorney Michael A. Consiglio, William Houser, Joseph Terz, and Daryl Bloom are prosecuting the case.
The names of those charged in the indictment are listed at the end of this release. They all were held in custody pending trial.
According to the indictment, all 21 men allegedly are or have been members or participants in the Southside Gang, which operated in the southern area of the City of York. The center of the alleged gang area is near Maple and Duke Streets in York, a location locally known as “the Jungle.”
The gang allegedly functions through an organized structure, including senior leaders, drug traffickers engaged in narcotics distribution; and “shooters,” who commit violent acts on behalf of the gang and to protect each other. Order is allegedly maintained through intimidation, threats, violence and, in some cases, murder.
The indictment alleges that defendant James Abney has been a principal leader and organizer, along with six other indicted individuals. The indictment also alleges that the Southside Gang includes a group of violent drug traffickers, originally affiliated with the “Bloods,” primarily a New York-based national violent street gang.
The indictment alleges criminal acts involving violence against a rival York gang, called “Parkway,” allegedly resulting in deaths of members of both gangs and innocent bystanders.
Southside Gang members allegedly distribute illegal drugs, mainly crack cocaine, as a major part of the criminal enterprise’s business and used and possessed firearms to protect the drugs.
Many Southside gang members have been investigated and prosecuted by York and York County law enforcement agencies for years as individual cases. The federal prosecution aims at dismantling the organization by exposing and attacking its ongoing structure and leadership. The federal investigations of gang violence and drugs in York are continuing in full cooperation with local police and the York County District Attorney’s Office.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty James Abney faces is 25 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Name and Street Name Age
Rolando Cruz, a/k/a “Mico” 29
Marc Hernandez, a/k/a “Marky D” 29
Douglas Kelly, a/k/a “Killer” 36
Roscoe Villega, a/k/a “P Shawn” 40
James Abney, a/k/a “Doocs” 28
Tyree Eatmon, a/k/a “Ree” 26
Jahkeem Abney, a/k/a “Foo” 24
Maurice Atkinson, a/k/a “Mo” 27
Anthony Sistrunk, a/k/a “Kanye” 26
Cordaress Rogers, a/k/a “Tank” 28
Eugene Rice, a/k/a “B Mor” 26
Angel Schueg, a/k/a “Pocko” 24
Marquis Williams, a/k/a “Quis” 26
Jalik Frederick, a/k/a “Murder Cat” 21
Brandon Orr, a/k/a “B Or” 22
Malik Sturdivant, a/k/a “Base” 22
Jabree Williams, a/k/a “Minute” 23
Ronald Payton, a/k/a “Ron Ron” 22
Jerrod Brown, a/k/a “Boogie” 25
Quintez Hall, a/k/a “Q” 21
Richard Nolden, a/k/a “Rich” 24
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Seven convicted in Baltimore to West Virginia heroin trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Seven individuals were convicted in federal court this week for their role in a multi-state heroin trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
The defendants convicted this week participated in a drug trafficking scheme in which heroin was transported across state lines from Baltimore, Maryland into West Virginia. The operation was disrupted in June 2015 by a 163-count federal indictment encompassing 41 defendants.
Bonnie Hanna, 34, of Martinsburg, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” She faces up to 20 years in prison and a fine of up to $1,000,000.
James Ross, 32, of Martinsburg, pled guilty to one count of “Aiding and Abetting Attempted Possession with Intent to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000.
Harmony Hahn, 32, of Martinsburg, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin,” for which she faces up to 20 years in prison and a fine of up to $1,000,000. She also pled guilty to one count of “Aiding and Abetting Interstate Travel in aid of Racketeering,” for which she faces up to five years in prison and a fine of up to $250,000.
Javier Howard, 32, and Cassandra Riggs, 26, both of Martinsburg, each pled guilty to one count of “Use of a Telephone to Facilitate the Distribution of Heroin,” and one count of “Aiding and Abetting Interstate Travel in aid of Racketeering.” They each face up to four years in prison for the telephone charge and five years in prison for the racketeering charge. They each also face a fine of up to $250,000 on each count.
Jessica Kesecker, 33, of Berkeley Springs, West Virginia, and Teddy Edward Threadgill, 46, of Harpers Ferry, West Virginia each pled guilty to one count of “Interstate Travel in aid of Racketeering.” They each face up to five years in prison and fine of up to $250,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Selim Zherka, Westchester Businessman, Pleads Guilty in White Plains Federal Court to Conspiring to Make False Statements to A Bank and to File Materially False Federal Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that Westchester businessman SELIM ZHERKA pled guilty today to conspiring to make false statements to a bank in order to receive millions of dollars in loans and to file materially false tax returns with the IRS. As part of his plea agreement, ZHERKA agreed to forfeit $5.23 million. ZHERKA entered his guilty plea before U.S. District Judge Cathy Seibel.
U.S. Attorney Preet Bharara said: “With his guilty plea, Selim Zherka now has admitted to what we have been alleging all along, that he waged a years-long campaign of lies to a bank and the IRS to obtain millions of dollars in loans and fraudulently reduce his tax liabilities. In addition to admitting his guilt, Zherka has agreed to forfeit over $5 million in ill-gotten gains. I want to thank the FBI, IRS, and the TARP Special Inspector General for the excellent work in this investigation and prosecution.”
According to the Superseding Information filed today in White Plains federal court and other court documents filed in this case:
From December 2005 through the present, ZHERKA conspired with others to obtain $63.5 million in loans from Sovereign Bank (now Santander), for the purchase and/or refinancing of apartment house complexes in Tennessee by lying about the purchase price of the real estate he was acquiring and the amount of the down payment he was making toward the purchase in question.
Additionally, the Superseding Information to which ZHERKA pled guilty charges him with engaging in a five-year-long tax fraud scheme. The Information alleges that ZHERKA repeatedly submitted fraudulent tax returns to the IRS that overstated depreciation expenses and understated his capital gains for the real estate holding companies in which he was a partner and which, in turn, owned apartment house complexes, thereby reducing their tax liabilities.
Four other individuals have previously pled guilty in White Plains federal court to conspiring with ZHERKA to commit offenses related to the conduct to which ZHERKA pled guilty today, and are awaiting sentencing.
SELIM ZHERKA, 47, of Somers, New York, faces a maximum sentence of five years in prison, based on the conspiracy charge to which he pled guilty. ZHERKA is scheduled to be sentenced by U.S. District Judge Cathy Seibel on December 22, 2015, at 10:00 a.m. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
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Mr. Bharara praised the outstanding efforts of the IRS, the FBI, and the Special Inspector General for the Troubled Asset Relief Program. He also thanked the Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being handled out of the White Plains Division. Assistant United States Attorneys Elliott B. Jacobson and Perry A. Carbone and Special Assistant United States Attorney Andrew J. Kameros are in charge of the prosecution.
San Diego Tax Return Preparer Indicted for Preparing False Tax ReturnsRead the Press Release
A San Diego tax return preparer was arrested today after being indicted by a federal grand jury sitting in the Southern District of California on 36 counts of aiding and assisting in the preparation of false federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
The indictment alleges that Marla Lynn Cunningham owned and operated Cunningham’s Tax Service, a tax preparation business located in El Cajon, California. According to the charges in the indictment, in 2010, 2011 and 2012, Cunningham prepared false individual income tax returns for others, which included false Schedules C that reported fictitious business losses and false Schedules A that reported inflated or fictitious itemized deductions, such as charitable contributions and medical, dental and unreimbursed employee expenses. Cunningham also attached forms claiming fictitious education credits that her clients were not entitled to receive.
If convicted, Cunningham faces a statutory maximum sentence of three years in prison and a fine of up to $250,000 for each count.
Acting Assistant Attorney General Ciraolo commended the special agents of the Internal Revenue Service–Criminal Investigation, who investigated the case, and Trial Attorneys Matthew R. Hoffman and Benjamin J. Weir of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the Southern District of California for their substantial assistance.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.