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Wednesday 26 August 2015
Anniston Army Depot Employee Indicted for Bribery, Providing Contraband to Federal PrisonersRead the Press Release
BIRMINGHAM – A federal grand jury today indicted an Anniston Army Depot employee for bribery and introducing contraband to federal prisoners, announced U.S. Attorney Joyce White Vance and Special Agent in Charge Robert Bourbon of the U.S. Department of Justice Office of the Inspector General’s Miami Field Office.
MARK DAVID THORNTON, 55, of Gadsden, was charged in an 18-count indictment filed in U.S. District Court.
“An individual who supervises prisoners and takes bribes in order to deliver contraband to them corrupts the underpinnings of our prison system,” Vance said. “Those crimes will be punished.”
“The introduction of contraband creates safety hazards for both inmates and staff,” Bourbon said. “The Department of Justice Office of the Inspector General will continue its efforts to ensure that federal prisons are as safe and secure as possible, and that anyone who supervises inmates and accepts bribes is brought to justice.”
Counts one through 15 of the indictment charge Thornton with bribery for corruptly accepting money from inmates at the Federal Correctional Institution, Talladega, in exchange for providing them with contraband between March 2014 and May 2015.
Count 16 charges Thornton with providing a cell phone to one inmate. Counts 17 and 18 charge Thornton with providing, or attempting to provide, t-shirts, protein powder and cigarettes to prisoners housed at FCI, Talladega.
Bribery carries a maximum penalty of 15 years in prison and a $250,000 fine. Introducing contraband into a prison is a misdemeanor, with a maximum sentence of up to one year in prison and a $100,000 fine.
The case was investigated by special agents of the U.S. Department of Justice Office of the Inspector General, and will be prosecuted by Assistant U.S. Attorney Davis A. Barlow.
Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Acoma Pueblo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Dwight T. Brown, 18, a member and resident of Acoma Pueblo, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to an involuntary manslaughter charge. The guilty plea was entered without the benefit of a plea agreement.
Brown was arrested on April 15, 2015, on a criminal complaint charging him with killing an Indian child on April 9, 2015, while driving under the influence of alcohol on the Acoma Pueblo in Cibola County, N.M. During today’s hearing, Brown pled guilty to a felony information charging him with involuntary manslaughter in connection with the death of the victim.
At sentencing, Brown faces a statutory maximum penalty of eight years in federal prison. Maximum potential sentences are prescribed by Congress and the sentence imposed on Brown will be determined by the court. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
14 Arrest Warrants Issued in Alleged Food Stamp Fraud, Drug Trafficking ConspiracyRead the Press Release
DAYTON, Ohio – An investigation by federal, state and local law enforcement in Butler County has led to the issuance of 14 arrest warrants on people charged in a conspiracy to defraud the United States, wire fraud, illegal use of Food Stamp benefits, theft of public money, money laundering and possession with intent to distribute a controlled substance (including near schools and playgrounds).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Harold Torrens, Agent in Charge, Ohio State Highway Patrol, Ohio Investigative Unit, Anthony Mohatt, Special Agent in Charge, United States Department of Agriculture (USDA) Office of Inspector General, Mark Porter, Special Agent in Charge, United States Secret Service, Butler County Sheriff Richard Jones, Hamilton County Sheriff Jim Neil, Fairfield Police Chief Mike Dickey, Cincinnati Police Chief Jeffrey Blackwell and Warren County Sheriff Larry Sims and other members of the Southern District of Ohio Task Force announced the arrests that took place today.
This morning federal, state and local law enforcement officials executed 19 search warrants, 14 arrest warrants and four seizure warrants against the owners, operators and employees of Butcher Shop Food Distributors, LLC of 300 Commercial Drive, Fairfield, OH and US Beef of Cincinnati, LLC of 3210 Profit Drive, Fairfield, OH.
Locations searched included business premises, residences and vehicles. Today’s raid culminated an 18-month undercover investigation into the suspected criminal practices of both of these retail meat home delivery services that operate in an approximate 50-mile radius of Fairfield. Their door-to-door retail sales of beef, poultry, pork and sea food products have impacted residential customers in Butler, Hamilton, Warren, Montgomery and Greene Counties.
Court documents allege that since 2011, individuals associated with Butcher Food Shop Distributors LLC and U.S. Beef Cincinnati LLC in Fairfield, Ohio actively engaged in illegal/fraudulent SNAP EBT (Food Stamp) transactions in exchange for cash. It is alleged that the owners, managers and other employees of the door-to-door meat retailers repeatedly, continually and illegally acquired and redeemed SNAP benefits in exchange for ineligible items, including money, Oxycodone, heroin and marijuana.
USDA records show that between December 2011 and May 2015, approximately 8,145 suspected fraudulent SNAP EBT transactions were completed via voucher for U.S. Beef employees for a total amount of approximately $1.1 million. The total estimated fraud for the Butcher Shop is approximately $382,000 and the total estimated number of SNAP EBT transactions for that shop is 7,912.
Initial court appearances for the arrestees are scheduled for 1:30 PM on August 27, 2015 before U.S. Magistrate Judge Michael J. Newman. They include:
- Steven E. Mueller, 61, of Fairfield
- Joseph Raymond Gray, 34, of Fairfield
- Jeffrey C. Knab, 58, of Cincinnati
- Andrie Lamarr Scott, 22, of Cincinnati
- Francis E. Racicot, IV, 32, of Cincinnati
- Rici Lynn Hopkins, 25, of Cincinnati
- Christopher Doane, 29, of Cincinnati
- Scott Andrew Traum, 45, of Cincinnati
- Joey Lightcap-Traum, 43, of Cincinnati
- Dalton Andrew Traum, 19, of Cincinnati
- Keith Blankenship, 35, of Loveland
- Gregory M. Brown, 35, of Cincinnati
- Jordan A. Kaiser, 22, of Fairfield
- William N. King, 22, of Fairfield
The Southern District of Ohio Task Force is an electronic and financial crimes task force made up of approximately 60 federal, state, and local law enforcement agencies in Ohio. This task force, along with an additional 80 electronic and financial networks across the United States, has been established to prevent, detect and investigate various forms of criminal activity that have large community impact.
U.S. Attorney Stewart commended the cooperative investigation by the local, state and federal law enforcement, as well as Assistant U.S. Attorney Dwight Keller, who is prosecuting the case.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
13 Indicted on Conspiracy Charges in Counterfeit Check Cashing SchemeRead the Press Release
Memphis, TN – Thirteen people were indicted today on conspiracy charges for their alleged participation in a counterfeit check cashing scheme that defrauded Kroger of more than $300,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment.
The case is being investigated by the United States Secret Service and the United States Postal Inspection Service.
The defendants indicted include:
• Eureka Roshanda Mathis a/k/a Eureka Barnes, 36, Memphis
• Khiyenne Tarinee Daniel, 20, Memphis
• Iesha Lazaira Davis, 24, Memphis
• Crystal Lynette Dennis, 40, Memphis
• Paul Anthony Dowdy, 25, Memphis
• Zakiyyah Lateefah Fitzgerald a/k/a Zakiyyah Adams, 38, Memphis
• Christopher La Renza Gathright, 23, Memphis
• Larry Joseph Lennix Jr, 24, Memphis
• Marcus T. Simmons, 25, Memphis
• Candice Cammille Starks a/k/a Candice Gaither, 36, Memphis
• Dorsett Starks, 28, Memphis
• Tischinna Amon Walton, 19, Memphis
• Lonell D. Weeks Jr., 39, Memphis
As the indictment alleges, the scheme was orchestrated by 36-year-old Eureka Mathis, a resident of Memphis. From February 2013 to August 2014, Mathis stole checks from the mailboxes of local businesses, primarily the United Food and Commercial Workers Union’s (UFCW) local chapter #1529 in Cordova, TN. Other businesses in the Cordova area were also victims of Mathis’ mail thefts.
The UFCW is a labor union representing approximately 1.3 million grocery, retail, food processing, and meat packing industry workers in the United States. According to the indictment, approximately 75 percent of Kroger employees are represented by the UFCW through its 400 local union chapters.
Mathis fraudulently altered the stolen UFCW checks by changing the name of the payee to one of her co-conspirators. She also used the stolen checks as templates to create counterfeit checks made payable to her co-conspirators and to others she recruited to further her scheme.
Over the two-plus-year period Mathis executed her scheme, she recruited more than two dozen individuals to cash the counterfeit checks. The co-conspirators traveled to various Kroger locations nationwide, as well as other establishments that provided check cashing services, to cash the counterfeit checks. The checks ranged from several hundred dollars to more than $2,000.
• Each defendant is being charged with one count of conspiracy to commit mail theft and to pass and utter fictitious obligations. If convicted, they each face up to five years imprisonment and individual fines of up to $250,000.
• Each defendant is being charged with one count of conspiracy to commit bank fraud. If convicted, they each face up to 30 years imprisonment and individual fines of up to $1 million.
• In addition to the aforementioned charges, Mathis is being charged with four counts of receipt and possession of stolen mail. Walton is being charged with two counts of receipt and possession of stolen mail. Davis is being charged with one count of receipt and possession of stolen mail. They each face up to five years imprisonment and individual fines of up to $250,000 per offense of conviction.
• Mathis is also being charged with one count of manufacturing counterfeited and forged securities. If convicted, she faces up to 10 years imprisonment and up to $250,000 in fines.
Assistant U.S. Attorney Leetra Harris is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Tuesday 25 August 2015
Woman in Prison for BP Oil Spill Fraud Pleads Guilty to Food Stamp Fraud and Tax EvasionRead the Press Release
BIRMINGHAM -- A McCalla woman, already serving time for attempting to defraud the Gulf Coast oil spill claims fund, pleaded guilty today in federal court to charges of food stamp fraud and evading income taxes. U.S. Attorney Joyce White Vance, Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Agriculture Office of Inspector General, Investigations, Special Agent in Charge Karen Citizen-Wilcox announced the plea.
SHERICA LACEY LEE, 33, entered her guilty pleas to one count each of tax evasion and wire fraud before U.S. District Court Judge L. Scott Coogler. Her sentencing date has not been set.
The U.S. Attorney's Office filed the charges against Lee in June and Lee entered a plea agreement with the government at that time. As part of her plea, Lee agrees to forfeit $23,757 to the government as proceeds of illegal activity. She also agrees to pay restitution of $134,448 to the IRS for taxes not paid in 2008 through 2010, plus $23,757 to the Department of Agriculture for food stamp benefits she was not eligible to receive between July 2009 and June 2013.
According to the charges and Lee's plea, she evaded income taxes for 2008 by preparing and submitting a personal tax return that falsely reported she had no taxable income, when she had $229,147 in taxable income that year. Lee ran a tax preparation business, Lacey's Income Tax Service, with several locations in the Birmingham area. Between 2008 and 2010, Lee's company filed more than 2,000 tax returns and generated about $2.5million in receipts.
Lee committed wire fraud as part of a scheme to obtain federal benefits from the USDA Supplemental Nutrition Assistance Program. USDA administered SNAP, formerly known as the Federal Food Stamp Program, in conjunction with the Alabama Department of Human Resources.
Although Lee had income in excess of $200,000 in 2009, she applied for SNAP benefits by falsely stating on her application to DHR that she had no household income, cash on hand, or money in the bank, according to her plea. Lee submitted additional false application forms in 2010, 2011 and 2012. Her applications caused the $23,757 in SNAP benefits to be wired to an account established in her name and loaded monthly onto an Electronic Benefit Transfer card, which could be used as a debit card to purchase food.
Lee is serving a one-year and a day prison term for attempting to defraud the Gulf Coast Claims Facility.
IRS, Criminal Investigation, and USDA-OIG investigated the case, which Assistant U.S. Attorney Pat Meadows is prosecuting
Williamson County Resident Pleads Guilty to Methamphetamine OffenseRead the Press Release
On August 20, 2015, Michael A. Boyt, Jr., 19, of Marion, pled guilty to one-count of conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that between 2013 and January 2015, Boyt, Jr. was involved with his father, Michael Boyt, Sr., and others in the manufacture of methamphetamine. Boyt, Jr. cooked methamphetamine and collected pseudoephedrine pills from others. On January 5, 2015, Boyt, Jr., also sold methamphetamine to a confidential source working for law enforcement. The offense occurred in Perry, Randolph, Williamson, Jackson, and Franklin Counties. Boyt, Jr. is currently being held without bond pending a December 8, 2015, sentencing hearing. The methamphetamine offense carries a maximum penalty of up to 20 years’ imprisonment, to be followed by 3 years’ supervised release, and a $1,000,000 fine. Two co-defendants have pled not guilty and are awaiting jury trial.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Steeleville Police Department, Coulterville Police Department, Sparta Police Department, Perry County Drug Task Force, and Illinois State Police Methamphetamine Response Team. The Randolph County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Video Poker Owner Pleads GuiltyRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Larry W. Flynn, a/k/a “L.W. Flynn,” age 40, of Columbia, South Carolina has entered guilty pleas in federal court to Operating a Gambling Business, a violation of 18 U.S.C. § 1955, and Evading Federal Taxes, in violation of 26 U.S.C § 7201. Senior United States District Judge Joseph F. Anderson, Jr. accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented to the Court established that Flynn operated a video-poker gambling business in violation of South Carolina gambling laws and evaded paying taxes on the money he made from his gambling business. Between 2010 and 2013, Flynn owned and ran Magic Minutes, a South Carolina company that placed video-poker machines in various locations, such as convenience stores, liquor stores, party shops, and bowling alleys. On the machines owned by Flynn – as well as others who paid to utilize the name Magic Minutes – users could buy a “voucher” for phone minutes and then play black jack, keno, poker, and other games of chance. SLED seized over 200 Magic Minutes’ machines, which FBI experts determined to be illegal gambling devices. In operating this illegal gambling business in 2011 and 2012, Flynn had a substantial taxable income yet took various steps to evade his tax responsibility including not filing tax returns, operating a significant portion of his business and personal life in cash, and paying employees in cash.
Mr. Nettles stated the maximum penalty for operating a gambling business is imprisonment for 5 years and/or a fine of $250,000, and the maximum penalty for tax evasion is imprisonment for 5 years and/or a fine of $100,000.
The case was investigated by agents of the FBI, SLED, and IRS-CID. Assistant United States Attorneys Jim May and Jay Richardson are prosecuting the case, along with attorneys from the South Carolina Attorney General’s Office.
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U.S. Attorney’s Office, U.S. Marshals Service and City of Buffalo Team up in Historic Demolition of Drug HousesRead 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 six drug houses used by the Anderson family drug trafficking organization are being demolished following a historic agreement reached between the City of Buffalo and the U.S. Marshals Service. The houses were forfeited as a result of the Office’s prosecution of the Anderson organization. All members of the organization have been convicted, with Theresa Anderson receiving a sentence of 188 months in prison.U.S. Attorney Hochul was joined by Buffalo Mayor Byron Brown, United States Marshal Charles Salina, NYS Police Captain Steven Nigrelli, Drug Enforcement Administration Resident Agent in Charge John Flickinger and Deputy Buffalo Police Commissioner Kim Beatty as the wrecking ball began to tear down these neighborhood eyesores.
“Drug dealing in houses such as this has the potential to cause physical, psychological and emotional harm to an entire neighborhood,” said U.S. Attorney Hochul. “By removing this blight, law enforcement and the City send a strong message that Buffalo continues to make positive progress, while restoring confidence to those who call this community home. We look forward to continuing our efforts to make Buffalo and its neighborhoods safer and healthier places to live.”
"This is what it’s really about when we take something and then turn it back over to the community and revitalize a neighborhood,” said City of Buffalo Mayor Byron Brown. “Today’s demolition is the first of six demolitions of forfeited properties from the Theresa Anderson drug prosecution and marks the end of a long chapter. This was a team effort to make our city even better and it worked. The partnership between the City of Buffalo, the United States Attorney’s Office and the United States Marshals Service has proven to be a significant tool in strengthening the quality of life in our community and fighting crime, contributing to the over 25% drop in overall crime in Buffalo since 2005.”
From approximately 2005 to 2012, the Anderson drug trafficking organization controlled drug sales in a multi-block neighborhood on the East Side of Buffalo, including Swinburne and Deshler Streets. The organization employed family members to sell crack cocaine on a daily basis, and engaged in violence in order to monopolize narcotics sales in the area. Organization members also purchased several homes in the area which were used for selling and storing the illegal narcotics.As part of the prosecution, over $50,000 in U.S. Currency was seized and eight drug houses were forfeited. Two of the houses were destroyed by fire. The remaining six properties will be demolished by the City of Buffalo working in conjunction with the U.S. Marshals Service. The demolitions will be paid for by funding from the federal asset forfeiture program. These funds include the illegal proceeds of criminal activity.
Hochul further stated “The work that begins today is the largest and most wide ranging demolition of forfeited drug houses that has occurred to date in the United States. “By using forfeiture funds to pay for the demolition, we are not only taking the profit out of criminal activity, we are using the money of criminals to pay for improving the neighborhood by removing visible reminders of their past crimes.”
The six properties being demolished are:
• 41 Deschler
• 54 Deschler
• 19 Swinburne
• 26 Empire
• 39 Empire
• 214 Hutchinson
Two other drug houses, 31 and 74 Deshler Street, burned down earlier this year.Theresa Anderson was arrested in February 2012 along with eight others: Steven Butler; Dion Anderson; Melvin Calhoun; Anquensha Hodge, a/k/a Anne Anderson; Wymiko Anderson, a/k/a Red; Toshia Hodge, a/k/a Toshia Anderson; Tajia Anderson, a/k/a Porkchop; and Leo Mellerson; all of Buffalo. Five of these defendants are either children or grandchildren of Anderson. A sixth defendant is Anderson's husband and the two others are boyfriends of Andersons' daughters. All nine have been convicted and sentenced.
Two defendants plead guilty to forced labor scheme that exploited Guatemalan migrants at egg farmsRead the Press Release
A leader of a human trafficking ring pleaded guilty yesterday in federal court to charges that he lured Guatemalan minors and adults into the United States on false pretenses, then used threats of physical harm to compel their labor at egg farms in Ohio. The guilty plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio.
Aroldo Castillo-Serrano, 33, of Guatemala, pleaded guilty to a labor trafficking conspiracy, one count of labor trafficking, one count of witness tampering and a related immigration offense. His co-conspirator, Conrado Salgado Soto, 52, of Mexico, pleaded guilty on Aug. 5 to participating in the same labor-trafficking conspiracy, as well as an immigration offense, the Justice Department also announced today. The guilty pleas are pending approval from a federal court judge and are not final until that approval is granted.
According to the indictment, which was unsealed on July 2, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day for minimal amounts of money. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens.
The defendants threatened workers with physical harm and withheld their paychecks in order to compel them to work. Castillo-Serrano also pleaded guilty to convincing a witness to lie to the FBI about the scheme. Eight minors, as young as 14, and two adults were identified in the indictment as victims of the forced labor scheme.
“These defendants exploited children who were poor, vulnerable and entirely at their mercy,” said Principal Deputy Assistant Attorney General Gupta. “We will pursue and prosecute such behavior with all of the tools at our disposal.”
“Our laws and a sense of common decency require that people not be treated like commodities,” said U.S. Attorney Dettelbach. “This defendant treated workers as if they were less important than the eggs that they would help produce. Now he is going to learn the hard way that in this nation, there is a big difference."
“The defendants forced adults and children to work and live in deplorable conditions in exchange for false promises,” said Special Agent in Charge Stephen D. Anthony of the FBI Cleveland Division. “These reprehensible actions are unacceptable and the FBI will continue to work with our partners to bring to justice those that engage in human trafficking.”
Charges are still pending against a third co-conspirator, Ana Angelica Pedro Juan, 21, of Guatemala. Pedro Juan is charged with labor trafficking and conspiracy to commit labor trafficking, as well as witness tampering and making false statements to law enforcement. Two other defendants, Conrado Salgado-Borbon and Bartolo Dominguez, have pleaded guilty to immigration offenses in connection with this case.
Castillo-Serrano’s sentencing will be scheduled at a later date, and Salgado Soto’s sentencing is scheduled for Dec. 14. The forced labor counts and the witness tampering count each carry a statutory maximum sentence of 20 years in prison. The charges involving immigration violations and false statements carry statutory maximum sentences of five years in prison.
The investigation is ongoing. The case is being investigated by the FBI Cleveland Office’s Mansfield Resident Agency, the Department of Homeland Security, the Marion Police Department and the Marion County Sherriff’s Office. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
Two Sentenced for Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Two area residents have been ordered to federal prison for their participation in a scheme to obtain tax refunds in the names of others, announced U.S. Attorney Kenneth Magidson. Carey Jermaine Johnson aka Jermaine Johnson, 38, of Houston, and Tarmera Renee Wyckoff aka Toni Wyckoff, 39 of Richmond, had each pleaded guilty to conspiracy to commit mail and wire fraud, conspiracy to make false claims to the IRS and making a false claim to the IRS.
Today, U.S. District Judge Gray Miller ordered Johnson to serve 28 months in prison, while Wyckoff will serve a 41-month-term. Johnson and Wyckoff were further ordered to pay $705,323 and $472,591.37 in restitution, respectively. A third defendant - Cheryl Reed Johnson aka Shawnee Reed and Cheryl Reed, 38, of Humble, is set for sentencing on Sept. 10, 2015.
The scheme for which all were convicted involved the electronic submission of federal tax returns in the names of numerous individuals, each of which falsely claimed tax credits that resulted in a refund. The defendants directed most of those refunds into their bank accounts or those of their co-conspirators. The co-conspirators claimed more than $2,261,000 in false first time home buyer credits on the 2008 returns filed with the IRS. Those fraudulent claims resulted in the defendants and their co-conspirators claiming more than $2,329,000 in fraudulent refunds.
Carey Johnson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Wyckoff and Cheryl Johnson will remain in custody.
This investigation was conducted by IRS-Criminal Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Two Men Involved in Hartford Gang-Related Narcotics Trafficking Are SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two men involved in gang-related narcotics trafficking in Hartford were sentenced yesterday by U.S. District Judge Jeffrey Alker Meyer in New Haven federal court.
HORACE STARKS, JR., also known as “Head” and “Little Head,” 23, of East Hartford, was sentenced to 10 months of imprisonment, followed by four years of supervised release. On April 30, 2015, STARKS pleaded guilty to one count of conspiracy to distribute 28 grams or more of cocaine base (“crack”). STARKS had no prior criminal record, which made him eligible for a reduced sentence.
SHAQILLE BROWN, also known as “Shaq,” 23, of Hartford, was sentenced to five years of probation. In addition, BROWN had been detained for approximately 16 months since his arrest in April 2014. On December 23, 2014, BROWN pleaded guilty to one count of using a telephone to facilitate a narcotics trafficking offense.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of West Hell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” 24, as the leader of the West Hell street gang who, along with his associates, including STARKS and BROWN, distributed crack cocaine in the Westland Street area of Hartford.
On April 3, 2014, STARKS participated with Scott and others in the sale of approximately 130 grams of crack for $2,600 to an individual cooperating with law enforcement.
Twenty-five individuals were charged as a result of the investigation, and 24 have been convicted. One defendant was shot and killed while his case was pending.
Scott awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Two Men Federally Indicted for Attempted CarjackingRead the Press Release
Acting United States Attorney Gregory J. Haanstad announced today that two Milwaukee men were indicted for the August 12, 2015 attempted armed carjacking at 76th Street and W. Layton Avenue in Greenfield. Devonte Hayes, age 19, and Norman Howard, age 18, were charged with one count of attempted motor vehicle robbery and one count of brandishing a firearm in furtherance of a crime of violence.
The attached Criminal Complaint provides a detailed account of the allegations against the defendants. If convicted, each man faces up to 15 years in prison on the motor vehicle robbery count and a minimum mandatory sentence of 7 years and up to life in prison on the charge of use of a firearm during a crime of violence.
This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Greenfield Police Department, the Oak Creek Police Department, the West Allis Police Department, and the Milwaukee Police Department. It is being prosecuted by Assistant United States Attorney Margaret B. Honrath.
The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
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Two Defendants Plead Guilty to Forced Labor Scheme that Exploited Guatemalan Migrants at Ohio Egg FarmsRead the Press Release
A leader of a human trafficking ring pleaded guilty yesterday in federal court to charges that he lured Guatemalan minors and adults into the United States on false pretenses, then used threats of physical harm to compel their labor at egg farms in Ohio. The guilty plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio.
Aroldo Castillo-Serrano, 33, of Guatemala, pleaded guilty to a labor trafficking conspiracy, one count of labor trafficking, one count of witness tampering and a related immigration offense. His co-conspirator, Conrado Salgado Soto, 52, of Mexico, pleaded guilty on Aug. 5 to participating in the same labor-trafficking conspiracy, as well as an immigration offense, the Justice Department also announced today. The guilty pleas are pending approval from a federal court judge and are not final until that approval is granted.
According to the indictment, which was unsealed on July 2, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day for minimal amounts of money. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens.
The defendants threatened workers with physical harm and withheld their paychecks in order to compel them to work. Castillo-Serrano also pleaded guilty to convincing a witness to lie to the FBI about the scheme. Eight minors, as young as 14, and two adults were identified in the indictment as victims of the forced labor scheme.
“These defendants exploited children who were poor, vulnerable and entirely at their mercy,” said Principal Deputy Assistant Attorney General Gupta. “We will pursue and prosecute such behavior with all of the tools at our disposal.”
“Our laws and a sense of common decency require that people not be treated like commodities,” said U.S. Attorney Dettelbach. “This defendant treated workers as if they were less important than the eggs that they would help produce. Now he is going to learn the hard way that in this nation, there is a big difference."
“The defendants forced adults and children to work and live in deplorable conditions in exchange for false promises,” said Special Agent in Charge Stephen D. Anthony of the FBI Cleveland Division. “These reprehensible actions are unacceptable and the FBI will continue to work with our partners to bring to justice those that engage in human trafficking.”
Charges are still pending against a third co-conspirator, Ana Angelica Pedro Juan, 21, of Guatemala. Pedro Juan is charged with labor trafficking and conspiracy to commit labor trafficking, as well as witness tampering and making false statements to law enforcement. Two other defendants, Conrado Salgado-Borbon and Bartolo Dominguez, have pleaded guilty to immigration offenses in connection with this case.
The forced labor counts and the witness tampering count each carry a statutory maximum sentence of 20 years in prison. The charges involving immigration violations and false statements carry statutory maximum sentences of five years in prison.
The investigation is ongoing. The case is being investigated by the FBI Cleveland Office’s Mansfield Resident Agency, the Department of Homeland Security, the Marion Police Department and the Marion County Sherriff’s Office. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
Trio Convicted of Multiple Narcotics Charges in Federal Wiretap CaseRead the Press Release
On August 24, 2015, Eddie Lee Perry, aged 44, of Cairo, Georgia; Joseph Davenport, aged 52, of Thomasville, Georgia; and Chad Ragin, aged 42, of Opalocka, Florida were convicted in United States District Court of all counts of an indictment charging them with conspiracy to possess with intent to distribute cocaine and crack cocaine, possession of cocaine and crack cocaine with intent to distribute (Davenport), use of a telephone in furtherance of a drug crime (Perry and Davenport), conspiracy to falsify records in a Federal investigation (Ragin), and falsifying records in a Federal investigation (Ragin). A copy of the indictment is attached. The guilty verdict is the result of a nine-day jury trial held in Albany, Georgia before the Honorable W. Louis Sands, Senior United States District Court Judge.
Evidence presented at trial showed that during 2013, the three defendants were part of a criminal organization that distributed cocaine and crack cocaine in Cairo, Georgia. Mr. Ragin acted as a courier of drugs and money between Mr. Perry and Roger Ross, of the Miami, Florida area. Mr. Davenport “cooked” the powder cocaine converting it into crack cocaine. The organization was responsible for trafficking/distributing kilogram quantities of cocaine.
Mr. Perry faces a mandatory minimum sentence of twenty years imprisonment. Mr. Davenport will receive a mandatory life sentence. Mr. Ragin is facing ten years to life imprisonment on Count 19 and twenty years imprisonment each on Counts 20 and 21. Sentencing will take place in about 60 days following a presentence investigation.
U.S. Attorney Michael Moore said, “Through outstanding cooperation between local, state and federal agencies, we have dismantled another large-scale drug distribution organization. We will continue to use every tool available to take the drugs off the streets and put the dealers in the jails.”
“Residents of Cairo should not have to live with drug dealers operating in their community,” stated Daniel R. Salter, Special Agent in Charge, U.S. Drug Enforcement Administration, Atlanta Field Division, “and these convictions will help protect the citizens of Cairo and the surrounding area. DEA will continue to work closely with our partners to protect our communities from the scourge of dangerous drugs.”
The case was investigated by the Thomas County Vice/Narcotics Squad, the Thomasville Police Department, the Grady County Sheriff’s Office, the Cairo Police Department, the Pelham Police Department, the Georgia State Board of Pardons and Paroles District Office and the U.S. Drug Enforcement Administration. Assistant United States Attorney Leah E. McEwen prosecuted 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.
Three Men Face Federal Gun Charges in Rock IslandRead the Press Release
Rock Island, Ill. - A federal grand jury returned indictments last week charging three men in separate, unrelated cases with federal gun charges in the Rock Island Division of the Central District of Illinois, as announced by U.S. Attorney Jim Lewis. The indictments had remained sealed pending the defendants’ arrests and court appearances.
Jeremy Elias Munday, 26, of the 1300 block of 13th Street, East Moline, Illinois, is charged with unlawful possession of a handgun on July 25, 2015, after having been previously convicted of a felony offense. If convicted on all charges, the statutory maximum penalty is up to 10 years in prison and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the East Moline Police Department and the Federal Bureau of Investigation.
Guadalupe Paulie Granado, 34, of the 900 block of 2nd Street, Colona, Ill., is charged with unlawful possession of a handgun on June 10, 2015, after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is up to 10 years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Moline Police Department and the Federal Bureau of Investigation.
Samuel Cruz, 27, of the 700 block of 12th Street, Moline, Illinois, is charged with unlawful possession of a handgun on March 27, 2015, after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Moline Police Department and the Federal Bureau of Investigation.
On August 25, 2015, all three defendants appeared in federal court in Rock Island for their initial appearances before U.S. Magistrate Judge Stephen B. Jackson, Jr., and all three defendants were ordered to remain in the custody of the U.S. Marshals Service.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Tax Return Preparer Pleads GuiltyRead the Press Release
DALLAS — A woman who owned a tax preparation business that had locations in Addison, Farmers Branch and Irving, Texas, My Kyung Ryoo, appeared in federal court today and pleaded guilty to one count of aiding or assisting in the preparation or presentation of a false or fraudulent individual income tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
Ryoo, who stated in open court today that she is 51 years of age, faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. In addition, according to the plea agreement filed in the case, Ryoo is to pay the Internal Revenue Service (IRS) $65,319 in restitution. Sentencing is set for December 17, 2015, before U.S. District Judge Jane J. Boyle.
According to the factual resume filed in the case, since 2006, Ryoo, a/k/a “Micky Ryoo,” was the owner and a return preparer at Quick File Tax Service located in Addison, Farmers Branch and Irving, Texas. During tax years 2007 through 2010, Ryoo prepared and filed more than 2000 tax returns from her various offices, and her name, business and electronic filer identification number appeared on every tax return prepared. Ryoo voluntarily closed Quick File in April 2011 and terminated her tax preparation business.
IRS’s audit of 30 fraudulent returns, according to the factual resume, resulted in an estimated tax loss of $65,319. The IRS Austin Scheme Detection Center identified 1,001 suspect tax returns prepared by Ryoo that appeared to contain questionable Schedule “A” deductions. Ryoo stipulates that the government likely could prove that a reasonable estimate of the total tax harm resulting from a substantial number of returns she prepared and filed for tax years 2007 – 2010, inclusive, is no more than $200,000.
The factual resume further states that in March 2011, a taxpayer, “AO,” requested Ryoo prepare her 2010 tax return. In 2010, AO was employed as a housekeeper, and her recently deceased husband had worked in a furniture store. In preparing and electronically filing that tax return, at AO’s request, Ryoo attempted to minimize AO’s and her late husband’s tax liability. After advising AO of the possible consequences of filing a questionable return, Ryoo falsely overstated on the return that AO and her deceased husband were entitled to more than $25,000 in itemized deductions on Schedule “A.” Ryoo also claimed that AO and her deceased husband were entitled to more than $1,500 in educations credits for which they did not qualify.
IRS Criminal Investigation is investigating. Assistant U.S. Attorney Joseph M. Revesz is in charge of the prosecution.
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St. Thomas Man Charged with Federal Firearm OffensesRead the Press Release
St. Thomas, USVI – Lued Browne, 44, made his initial appearance in District Court today before U.S. Magistrate Judge Ruth Miller after being charged in a two-count Indictment with possession of a firearm by a convicted felon and possession of a firearm in a school zone, United States Attorney Ronald W. Sharpe announced. Browne was detained pending a detention hearing on August 27, 2015.
According to the Indictment which was filed August 6, 2015, in District Court on St. Thomas, Browne was found in possession of a firearm on the grounds of Antilles School. Browne was previously convicted in the District Court for the Northern District of Florida of armed bank robbery and use or possession of a firearm during a crime of violence.
If convicted of possession of a firearm by a convicted felon, Browne faces a maximum sentence of 10 years in prison and a $250,000 fine. Additionally, Browne faces a maximum sentence of 5 years in prison and a $250,000 fine for possession of a firearm in a school zone, to run consecutively to any other sentence.
This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Virgin Islands Police Department (VIPD). It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
United States Attorney Sharpe reminds the public that an Indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
St. Thomas Man Charged in District Court with Firearm OffensesRead the Press Release
St. Thomas, USVI – Michael Lewis, 27, made his initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged in an Indictment with possession of a firearm by a convicted felon, two counts of possession of ammunition by a convicted felon, and the local offenses of possession of a firearm by a convicted felon and possession of an unlicensed firearm, United States Attorney Ronald W. Sharpe announced. Lewis was detained pending a detention hearing on August 27, 2015.
According to the Indictment which was filed August 6, 2015, in District Court on St. Thomas, Lewis was found in possession of three firearms and numerous rounds of ammunition. Lewis was previously convicted in the Superior Court of two counts of unauthorized possession of a firearm and third degree assault with a deadly weapon.
Under federal law if convicted of possession of a firearm by a convicted felon and possession of ammunition by a convicted felon, Lewis faces a maximum sentence of 10 years in prison and a $250,000 fine. If convicted of possession of a firearm by a convicted felon under territorial law, he faces a maximum sentence of 20 years in prison and a $25,000 fine; and if convicted of possession of an unlicensed firearm, he faces a maximum sentence of 5 years in prison and a $15,000 fine.
This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Virgin Islands Police Department (VIPD). It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
United States Attorney Sharpe reminds the public that an Indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Springfield Man Pleads Guilty to Advertising ScamRead the Press Release
Springfield, Ill. – A Springfield, Ill., man, Andrew Miles Ross, waived indictment and pled guilty to defrauding more than 6,500 small businesses in more than 32 states in a telemarketing advertising scam. Ross, 32, of the 3100 block of S. Woodward St., owned and operated a telemarketing company that sold advertising space on placemats or take-home menus purportedly to be used by popular Mexican restaurants. As a result of the scheme, Ross sold more than $900,000 in false advertisements.
Ross appeared in federal court yesterday and entered a plea of guilty to five counts of wire fraud before U.S. Magistrate Judge Thomas P. Schanzle-Haskins. Ross is currently on bond awaiting sentencing, which is scheduled on Jan. 18, 2016, before U.S. District Judge Sue E. Myerscough.
The telemarketing company operated under various names including A. Ross and Associates and Coast-to-Coast Advertising, LLC, doing business as Nationwide Advertising and Nationwide Marketing. Between 2005 and April 2011, as part of the scheme, advertising space was sold primarily to small businesses, such as auto repair shops, insurance agents and beauty salons located in the area of Mexican restaurants. The telemarketers falsely represented to small businesses that they were employed by or associated with a local Mexican restaurant that was selling the ad space on its placemats or take-home menus. Further, the telemarketers falsely represented a one-time annual fee for purchasing advertisement, although Nationwide Marketing routinely debited the checking or credit card account of the small businesses without the businesses’ authorization or consent on multiple occasions during the year.
As part of the scheme, Ross, or someone else associated with Nationwide Marketing, contacted popular Mexican restaurants throughout the U.S. and attempted to persuade them to accept free placemats or take-home menus. Nationwide Marketing falsely represented that the items were a gift for being named in a survey as the top Mexican restaurant in the area. In some instances, although the restaurant advised that it did not want the items, Nationwide Marketing sent the placemats and take-home menus, which were of poor quality, regardless.
The case is being prosecuted by Assistant U.S. Attorney Gregory K. Harris. The investigation was conducted by agents of the FBI and the U.S. Postal Inspection Service. The case was referred to the U.S. Attorney’s Office by the Illinois Attorney General’s Office.
At sentencing, Ross faces a maximum possible penalty of up to 20 years in prison, a fine of up to $250,000 and a term of supervised release of up to three years to follow any term of imprisonment. The defendant may also be ordered to pay restitution.
Silicon Valley Employee Arrested for Theft of Trade SecretsRead the Press Release
SAN FRANCISCO – Jing Zeng appeared in United States District Court today after being arrested by the Federal Bureau of Investigation (FBI) on a criminal complaint alleging theft of trade secrets, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
According to the affidavit in support of the criminal complaint, Zeng, 42, of San Ramon, Calif., is alleged to have downloaded over one hundred files containing propriety, non-public information from a confidential Machine Zone, Inc. database after he learned that his employment was to be terminated. Machine Zone, Inc., makes the on-line video game Game of War: Fire Age. The affidavit also sets forth evidence that after Zeng downloaded this information onto his company laptop, he transferred it to an external device, wiped and reformatted the laptop, and then returned the laptop to the company. The complaint alleges there is probable cause to believe Zeng’s acts amount to a theft of trade secrets in violation of 18 U.S.C. § 1832(a)(2).
Zeng was arrested at San Francisco International Airport on August 20, 2015, as he prepared to board a flight for China. He made his initial appearance on August 21 in federal court in San Francisco and has been detained pending determination of bail. The complaint was unsealed today at Zeng’s bail hearing before Magistrate Judge Joseph C. Spero in San Francisco. Zeng was released on a $100,000 secured bond and placed on electronic monitoring.
A criminal complaint only alleges probable cause that a defendant committed a crime, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted violating 18 U.S.C. § 1832(a)(2), Zeng faces a maximum sentence of 10 years in prison, and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office, and is being investigated by the Federal Bureau of Investigation, Palo Alto.
San Antonio Area Businesswoman Sentenced to Federal Prison for Orchestrating Estimated $1.4 Million Fraud SchemeRead the Press Release
This afternoon, San Antonio businesswoman Lea Ann Blystone was sentenced to seven years in federal prison for orchestrating an estimated $1.4 million wire fraud scheme announced United States Attorney Richard L. Durbin, Jr. and FBI Special Agent in Charge Christopher H. Combs.
In addition to the prison term, Senior United States District Judge David Ezra ordered that Blystone pay a monetary judgment in the amount of $1,402,935.45 which represents the amount of proceeds traceable to the above mentioned scheme. Judge Ezra also ordered that Blystone be placed on supervised release for a period of three years after completing her prison term. Judge Ezra remanded Blystone into federal custody following today’s sentencing.
Blystone, age 48, is the owner and managing partner of HipDingo stores in Boerne and Fredericksburg, and formerly in San Antonio; and, the former marketing director for a land development company, Rinco of Texas, Inc. (Rinco), and its Rockin J Ranch (Rockin J) development.
On September 9, 2014, the Boerne, TX, resident pleaded guilty to one count of wire fraud and agreed to forfeit to the government any and all HipDingo inventory, assets and equipment; five real estate properties in Kendall County (TX); and, three vehicles. By pleading guilty, Blystone admitted that from January 2009 until August 2011, she devised and implemented a scheme to defraud Rinco and Rockin J to obtain money and other property by means of false and fraudulent pretenses.
As marketing director for Rinco and Rockin J, Blystone was responsible for coordinating the staffing and payments to vendors for promotional booths or display space at shows, malls, sporting, and other events. In defrauding the victims, Blystone caused them to pay several cohorts for purportedly working at the displays, when in fact they performed no such work. According to courtroom testimony, they shared these payments with Blystone. In some instances, Rinco and Rockin J paid for services when Blystone had provided no promotional work on their behalf. In others, Blystone caused Rinco and Rockin J to pay monies she used to pay persons working at her Hip Dingo stores, work wholly unrelated to promotions for the victims.
This case was investigated by agents with the Federal Bureau of Investigation. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.
Rollinsford Man Sentenced for Serial Bank FraudRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald A. Feith announced that United States Senior District Judge Joseph A. DiClerico today sentenced Christopher J. Bailey to a term of 33 months in federal prison based upon his previous pleas of guilty to one count each of Bank Fraud, False Statement on a Loan or Credit Application, and False Representation of Military Decorations and Medals (Stolen Valor). Bailey, age 28, lived in Rollinsford, New Hampshire, at the time of the offenses for which he was sentenced.
According to statements and documents relating to Bailey’s and sentencing, the Bank Fraud and loan-related offenses arose from Bailey’s execution of a scheme to serially defraud the federal government and at least ten private financial institutions of more than $1.6 million dollars. The gist of Bailey’s scheme was to apply for loans based on the false pretense that the defendant had a successful agricultural business and the false representation that the defendant intended to use the funds to purchase farming equipment or other agricultural assets for use in that business. Bailey executed the scheme over a nearly five year period beginning in late 2009. The Stolen Valor charge arises from claims of military heroism that Bailey made to facilitate his fraud. Bailey attempted to substantiate his false claims of service and heroism by counterfeiting military documents and presenting them to lenders. In fact, Bailey never served in the military.
“Schemes to defraud government programs and financial institutions cause significant harm to those programs and to the system lenders rely upon when making decisions on lending,” stated Acting United States Attorney Donald Feith. “Our financial system relies on borrowers providing truthful and accurate information when seeking loans. Fraudsters such as Mr. Bailey damage the entire system of lending by imposing greater costs on truthful borrowers. Our office will continue to work with law enforcement to identify financial fraudsters and bring them to justice.”
In addition to the prison term, Judge DiClerico sentenced Bailey to a period of five years of supervised release, which Bailey must serve after completing his prison term. While on supervised release, Bailey will be required to abide by rules established by the court. If he fails to abide by those rules, he can be forced to serve additional time in prison. Finally, Judge DiClerico ordered Bailey to pay more than $670,000 in restitution to the lenders he defrauded.
This case was investigated by criminal investigators in the Manchester (N.H.) office of the U.S. Secret Service and the Salem (N.H.) office of the U.S. Department of Agriculture, Office of Inspector General, and the Boston office of the Department of Defense’s Criminal Investigative Service (DCIS). The case was prosecuted by Assistant U.S. Attorney Bill Morse.
Rochester Man Pleads to Drug Conspiracy Involving 1998 MurderRead 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 Angelo Cruz, of Rochester, N.Y., 39, pleaded guilty to conspiracy to distribute 280 grams or more of crack cocaine before U.S. District judge Frank P. Geraci. The charge carries a mandatory minimum penalty of 20 years and a maximum of life, and a $10,000,000 fine.“This case – like so many before it – demonstrates the success of using federal tools to combat violent gang activity,” said U.S. Attorney Hochul. “We will continue to be engaged in such investigations when appropriate situations arise.”
Assistant U.S. Attorney Everardo A. Rodriguez, who is handling the case, stated that while pleading guilty in court to the drug charge the defendant also admitted to assisting in the murder of Francisco Santos at the Seneca Indian Reservation in Erie County, N.Y., in October 1998. The murder was part of a drug trafficking conspiracy in the Rochester area, which included cocaine, crack cocaine, heroin and marijuana, from 1993 to March 2011.
The victim, Francisco Santos, was a member of the drug distribution conspiracy and was believed to have stolen drugs and money from other members of the conspiracy. In retaliation for the theft, members of the conspiracy assaulted Santos and slashed Santos across the side of the head with a knife. Sometime after the beating, the co-conspirator who slashed Santos on the head was arrested for the assault.
To further retaliate for the original theft and to prevent Santos from testifying against the co-conspirator on the assault charge, Cruz admitted that he and a group of other co-conspirators found Santos and drove him to the Seneca Indian Reservation. Once at the reservation, they took Santos down a dirt path behind some trees where Santos was stabbed to death and buried in a shallow grave. Cruz admitted to having been present and observed Santos being stabbed while he was acting as a lookout.
Also charged in the Santos murder: James Kendrick, Pablo Plaza, born in 1972, Pablo Plaza, born in 1976, and Janine Plaza Pierce, the mother of Kendrick and the older Plaza. The trial of remaining defendants is expected to take place later this year and June 2016.
The plea is the culmination of a joint investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division, under the direction of Special Agent in Charge Delano Reid, and the Rochester Police Department, Violent Crime Team/Firearms Suppression Unit, under the direction of Chief Michael Ciminelli. Numerous federal, state and local law enforcement agencies assisted in the investigation, including the New York State Police, under the direction of Major Craig Hanesworth; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy B. Howard; the Federal Bureau of Investigation; the United States Drug Enforcement Agency, under the direction of Special Agent in Charge James J. Hunt, New York Field Division. Also assisting in the investigation was the Schenectady County District Attorney’s Office, under the Direction of District Attorney Robert M. Carney.Sentencing is scheduled for January 4, 2016 at 9:30 a.m. before Judge Geraci.
Registered Fort Worth Sex Offender Sentenced to 40 Years in Federal Prison for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — A registered sex offender, living in Fort Worth, Texas, who pleaded guilty to a two-count indictment charging child pornography offenses, was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Mark Anthony Pape, 24, was sentenced by U.S. District Judge Terry R. Means to 40 years in federal prison. He pleaded guilty in October 2014 to an indictment charging one count of production of child pornography and one count of committing this offense as a registered sex offender. Pape has been in federal custody since his arrest in April 2014 in San Marcos, Texas, on a related federal criminal complaint.
According to documents filed in the case, on approximately April 9, 2014, officers with the Fort Worth Police Department executed a search warrant at Pape’s residence in Fort Worth and seized computer media and a cell phone. A forensic examination of the phone revealed a video depicting Pape and a prepubescent female, approximately six-years-old, engaged in sexually explicit conduct. The video was taken in Pape’s home in February 2014.
The investigation was initiated when the National Center for Missing and Exploited Children (NCMEC) received a cyber-tip regarding an individual who had uploaded an image, containing suspected child pornography, to the Internet. The investigation led to the identification of Pape, a registered sex offender.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Fort Worth Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney A. Saleem prosecuted.
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Record Distributor Pleads Guilty to Copyright Infringement ChargesRead the Press Release
DALLAS – The owner of a record distribution company that knowingly sold counterfeit Latina music CDs to retailers from its stores/distribution centers in Dallas, Chicago and Phoenix, appeared in federal court today in Dallas and pleaded guilty to federal charges, announced U.S. Attorney John Parker of the Northern District of Texas.
Arizona resident, Melek Ackay Portillo, 52, who owns Angelica’s Record Distributors, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to two counts of copyright infringement, stipulating that she willfully reproduced or distributed numerous copyrighted sound recordings on CDs without authorization from the copyright holders. Angelica’s Record Distributors pleaded guilty to three counts of trafficking in counterfeit labels and counterfeit packaging. A sentencing date was not set.
According to plea agreements filed in the cases, if acceptable to the Court, the parties agree that Portillo and Angelica’s Record Distributors will each receive a five-year term of probation. In addition, Portillo must pay, jointly and severally with Angelica’s Record Distributors, $250,000 in restitution to the Recording Industry Association of America, forfeit $250,000 in cash to the Department of Homeland Security, and forfeit 155,441 counterfeit CDs and DVDs that were seized from Angelica’s Record Distributors in Dallas, Chicago and Phoenix.
From September 2010 through April 27, 2011, Angelica’s Record Distributors obtained music CDs that it knew contained counterfeit labels and counterfeit packaging. These music CDs that contained the counterfeit packaging and illicit labels, and which Angelica’s Record Distributors knew were copyrighted works, were purchased from a company in California and then distributed to retailers across the country through Angelica’s Record Distributors store locations.
Employees at all three store locations knowingly sold legitimate and counterfeit CDs to retailers. Employees mixed legitimate product with counterfeit product containing counterfeit labels and packaging, and they told their customers either that the counterfeit product was from a cheaper distributor or that it was “grey market,” meaning that the CDs were legitimate but produced for distribution in Mexico or abroad, and not intended to be sold in the U.S.
Because of its conduct, Angelica’s Record Distributors caused the record labels associated with the Recording Industry Association of America to suffer more than $250,000 in losses.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
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Quest Diagnostics Pays the United States $1.79 Million to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — Quest Diagnostics Inc. and Quest Diagnostics Clinical Laboratories Inc. (collectively “Quest Diagnostics”) have paid the United States $1,79 million to settle claims that it violated the False Claims Act, United States Attorney Benjamin B. Wagner announced today.
This settlement resolves allegations that Quest Diagnostics submitted duplicative claims to Medicare for certain venipuncture services and diagnostic tests and certain panel tests and select components of those panels. The United States alleged that these payments violated the False Claims Act.
“We are committed to fighting fraud and abuse to help preserve scarce Medicare funds for those who need it the most, the sick and the elderly.” said U.S. Attorney Wagner.
The settlement announced today resolves a lawsuit filed in the Eastern District of California under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblower in this case will receive $358,000 of the recovery proceeds.
This case was investigated by the United States Attorney’s Office for the Eastern District of California. Assistant United States Attorney Catherine Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Providence Man Detained on Sex Trafficking, Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – Dujuan Harris, 35, of Providence, R.I., has been ordered detained in federal custody on charges that he allegedly sex trafficked a 17-year-old female from Texas, announced United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Providence Police Chief Hugh T. Clements, Jr., and Bruce M. Foucart, Special Agent in Charge of Homeland Security (HSI) Investigations for New England.
Harris is also charged with production of child pornography, after investigators allegedly discovered numerous nude photographs of the 17-year-old victim on Harris’ cell phone taken from Skype conversations with the victim while she was in Texas.
Harris appeared before U.S. District Court Magistrate Judge Patricia A. Sullivan on Monday and was ordered detained in federal custody after having been detained in state custody on related state charges since June 30, 2015.
Harris is charged by way of a federal criminal complaint with one count each of sex trafficking a child, transportation of a minor with intent to engage in criminal sexual activity, production of child pornography and possession of child pornography.
According to federal court documents, after allegedly befriending the teenager on the Internet, it is alleged that Harris provided funds to the teenager to pay for her to travel by bus from her home in Texas to Boston. It is alleged that Harris met the young woman when she arrived in Boston on June 12, 2015, and then paid for her to travel with him by bus to Providence. It is alleged that within a few days of her arrival in Providence, the defendant took photographs of the victim in various stages of undress and posted them in ads on Backpage.com.
According to an investigation by the Providence Police Department and agents from Homeland Security, the response to the ad was immediate and several sexual encounters with the 17-year-old for a fee were arranged. All of the funds were allegedly turned over to Harris.
According to court documents, when Harris told the young woman that he wanted to earn more money by having her engage in an increased number of sexual encounters for payment, the young woman told Harris she no longer wanted to participate. It is alleged that Harris removed the battery from the victim’s cell phone so that she could not be located and on several occasions refused to allow her to leave the Providence apartment they were staying in.
On June 30, 2015, Homeland Security agents, Providence Police detectives and members of the Human Trafficking Task Force located the victim in an apartment in Providence.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
Prosecutors from the Rhode Island Department of the Attorney General are assisting the United States Attorney’s Office in the prosecution of this matter.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Parmelee Man Sentenced for Abusive Sexual Contact by Force and Child AbuseRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Parmelee, South Dakota, man convicted of Abusive Sexual Contact by Force and Child Abuse was sentenced on August 24, 2015, by U.S. District Judge Roberto A. Lange.
Ilijah White Lance, a/k/a Iliajh White Lance, age 18, was sentenced to a total of 180 months in custody, followed by 6 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
White Lance was indicted by a federal grand jury on March 10, 2015. He pled guilty on June 2, 2015.
The conviction stems from incidents on February 10, 2015, when White Lance was at the home of some friends in Parmelee, and after the occupants of the house had fallen asleep, he went into a child’s bedroom and had sexual contact with the young victim. While White Lance was abusing the first victim, a second young child witnessed the abuse. Later, White Lance exposed himself to the second victim and also punched the child.
This case was investigated by the Federal Bureau of Investigation, as well as the Rosebud Sioux Tribe Law Enforcement Agency. Assistant U.S. Attorney Timothy M. Maher prosecuted the case.
White Lance was immediately turned over to the custody of the U.S. Marshals Service.
Parkersburg man sentenced to federal prison for cocaine and heroin traffickingRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man who possessed heroin and cocaine in his home and a rented storage unit was sentenced today to eight years in federal prison, United States Attorney Booth Goodwin announced. Dustin Keith Jarvis, 34, of Parkersburg, West Virginia previously pleaded guilty in April to possession with intent to distribute cocaine.
On April 23, 2014 drug task force officers searched Jarvis’ apartment and a storage unit in Mineral Wells. They seized more than 120 grams of cocaine, approximately 400 grams of heroin, and more than $12,000 cash. This case is part of a larger cooperative investigation by drug task forces in Wood County, West Virginia and Washington County, Ohio.
Other individuals prosecuted in federal court as part of this investigation include Brent J. Sidwell who pleaded guilty on April 24, 2015 to conspiracy to distribute more than 100 kilograms of marijuana, Timothy Fields who was sentenced to six years in federal prison for conspiracy to distribute cocaine and marijuana, and David Naylor who pleaded guilty to conspiracy to distribute marijuana.
This prosecution is a result of the ongoing cooperation between the Parkersburg Drug & Violent Crime Task Force, Washington County, Ohio Major Crimes Task Force, and the Internal Revenue Service. Assistant United States Attorney, Joshua Hanks handled the prosecution. The sentence was imposed by District Judge John T. Copenhaver, Jr.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
Owner of Local Tax Preparation Business Indicted for FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Eyob Tilahun, the owner of a local tax return preparation business known as "Tax King," was indicted on charges of conspiring to submit false claims to the United States Government and Aiding and Abetting the Filing of False Tax Returns.
Tilahun owned and operated several Tax King locations in St. Louis, Missouri, and East St. Louis, Illinois. According to the indictment, Tilahun and co-defendant Mason B. Richmond trained Tax King’s return preparers on how to increase their customers’ refunds by falsifying certain information on their tax returns. The false information that was allegedly placed on the returns includes: (1) false Business Income and Schedules Cs which caused the clients to qualify for larger Earned Income Credits ("EICs"); (2) false wages, which again caused the clients to qualify for larger EICs; (3) false education expenses which enabled the clients to qualify for American opportunity education credits; and (4) false information regarding fuel taxes which qualified the clients for federal fuel tax credits.
The indictment alleges that Tilahun and Tax King profited by charging its clients fees which ranged from approximately $400 to $650. The indictment states that the return preparers also profited by requesting cash "tips" from the clients that ranged from approximately $100 to $1,000.
"Every American citizen is harmed when false tax returns are filed seeking fraudulent refunds," United States Attorney Wigginton noted. "My office will continue to aggressively prosecute the tax cheats who engage in these types of schemes."
Tilahun was arraigned on Monday at the Federal Courthouse in East St. Louis. A detention hearing for Tilahun will be held Tuesday (today) at 1:00 p.m. This detention hearing will determine whether Tilahun is held in custody pending his trial or whether he is released on bond. Richmond was also arraigned yesterday in East St. Louis. Richmond was released on bond.
On January 22, 2015, five of the return preparers who worked at the East St. Louis location were indicted on federal tax charges. The return preparers who were charged are: Edric A. Russell, Lakesha R. Wilson, Melissa L. Wiley, Tanesa L. Beverly, and Pierre J. Carter. Beverly and Wiley have both pled guilty. The charges against Russell, Wilson, and Carter are still pending.
The charge of conspiring to submit false claims carries a maximum sentence of 10 years of imprisonment, a $250,000 fine, and restitution. Each charge of preparing false income tax returns carries a maximum sentence of 3 years of in federal prison and a fine of $250,000.
The investigation is being conducted by agents from the Fairview Heights, Illinois, and St. Louis, Missouri Offices of the Internal Revenue Service – Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Newcomb, N.M., Man Sentenced to Prison for Federal Aggravated Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Michael Randolph, 31, an enrolled member of the Navajo Nation who resides in Newcomb, N.M., was sentenced this morning in Albuquerque, N.M., for an aggravated sexual abuse charge. Randolph was sentenced to 144 months in prison followed by ten years of supervised release. He will be required to register as a sex offender after he completes his prison sentence.
Randolph was arrested on Dec. 30, 2013, on a criminal complaint alleging that he sexually abused a child under the age of 12 years on Dec. 19, 2013, within the Navajo Indian Reservation in San Juan County, N.M. Randolph subsequently was indicted on that same charge.
On Feb. 18, 2015, Randolph entered a guilty plea to a felony information charging him with aggravated sexual abuse. Randolph admitted assaulting the victim by intentionally touching the victim’s genitalia with his hands and fingers.
This case was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock Office of the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
New Jersey Businessman Goes to Prison for Defrauding an Atlanta Financing CompanyRead the Press Release
ATLANTA – Samuel Perez, a New Jersey businessman, has been sentenced to three years, ten months in federal prison for falsifying over $6 million in accounts receivables and invoices that he sold to an Atlanta, Georgia, financing company.
“This defendant swindled a financing company to obtain money to run his own company and finance his personal lifestyle,” said U.S. Attorney John A. Horn. “His fraud put the victim into bankruptcy and cost people at that company their jobs.”
“As Mr. Perez serves his prison sentence, he will have plenty of time to reflect on his greed based criminal conduct that not only negatively affected the victim company but also many of its employees,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: Samuel Perez owned and operated Comp Care Partners, LLC, a New Jersey company that was located and operated in New Jersey. Comp Care was in the business of managing occupational medical testing programs for other companies.
Beginning in about December 2009, Perez began “factoring,” or selling Comp Care’s accounts receivables to a financing company headquartered in Atlanta, Georgia. Perez falsified and caused to be falsified many, if not most, of the accounts receivables that he sold to the Atlanta finance company. To support the false accounts receivables, Perez created false invoices purporting to reflect work that Comp Care had done for its customers. When purchasing accounts receivables, the financing company attempted to contact Comp Care’s customers to verify that the accounts receivables and invoices were valid obligations of the customers. Perez created fictitious identities and used those identities to pose as employees of Comp Care’s customers and verify the fraudulent invoices that he was selling to the financing company. Perez created and used internet domain names, telephone numbers, and email addresses to pose as these fictitious employees of Comp Care’s customers.
To further conceal that he was selling false accounts receivables, Perez paid off false receivables by selling the financing company even more false accounts receivables. Over time, the amount of false and fraudulent accounts receivables steadily increased, which ensured that Perez had enough funds to pay the financing company for previous fraudulent accounts receivables that he had sold it. Perez also used the money that he obtained from the financing company to operate and fund Comp Care and his personal lifestyle. In 2013, before the financing company uncovered his fraud, Perez sold over $6 million in fraudulent accounts receivables.
Samuel Perez, 38, of Manahawkin, New, Jersey, has been sentenced by U.S. District Court Judge Steve C. Jones to three years, ten months in prison to be followed by three years of supervised release.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Douglas W. Gilfillan prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Narcotic Treatment Program Faces Civil PenaltiesRead the Press Release
GAINESVILLE, Ga. - Lanier Treatment Center, Inc., a narcotic treatment program, located in Gainesville, Ga., has agreed to pay a civil settlement of $20,000 to resolve allegations that it violated the recordkeeping requirements of the Controlled Substances Act. Lanier Treatment Center, Inc., also has agreed to additional oversight from the Drug Enforcement Administration (DEA).
“The Controlled Substances Act requires treatment centers like Lanier Treatment Center to keep an accurate inventory of its controlled substances to prevent them from falling into the hands of dealers and addicts,” said Acting U.S. Attorney John Horn. “The diversion of prescription narcotics and painkillers feeds the market for abuse and addiction, and Georgia is experiencing an epidemic of prescription drug abuse. We are committed to preventing the diversion of controlled substances by enforcing the recordkeeping requirements.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “DEA Diversion Investigators will continue to conduct accountability audits to make sure that Narcotics Treatment Programs are abiding by specific rules and regulations. This civil fine shows that DEA and the entire law enforcement community are committed to making sure that such companies are abiding by its mandates.”
The government alleges that Lanier Treatment Center, Inc., failed to maintain a current, complete, and accurate record of all controlled substances received, sold, delivered, or otherwise disposed of. Accountability audits conducted by the DEA revealed overages and shortages of methadone in 2010 and 2013. The government also alleges that Lanier Treatment Center, Inc., failed to conduct a biennial inventory in compliance with all applicable laws and regulations and failed to comply with all applicable laws and regulations regarding written orders for controlled substances. The claims settled are allegations only, and there has been no determination of liability.
The Controlled Substances Act was enacted to ensure that controlled substances are properly regulated and to help prevent drug diversion. Thus, narcotic treatment programs that receive and dispense controlled substances are required to maintain complete and accurate inventories and records of all controlled substances that they purchase, receive, dispense, or destroy. In order to enforce the recordkeeping requirements of the Controlled Substances Act, the Act imposes civil penalties for refusing or negligently failing to maintain the records required by the Act.
This case was investigated by Diversion Investigators from the Drug Enforcement Agency.
The civil settlement was reached by Assistant United States Attorney Lena Amanti.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Murphysboro Resident Sentenced for Crack cocaine and Firearm OffensesRead the Press Release
On August 20, 2015, Martell L. Brown-Wright, a/k/a "Low Key," 29, of Murphysboro, was sentenced in federal court in Benton, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Brown-Wright, who had previously pled guilty to a four-count indictment charging distribution of crack cocaine within 1,000 feet of a public housing facility (2 counts); possession of crack cocaine with intent to distribute within 1,000 feet of a public housing facility; and possession of a firearm in furtherance of a drug trafficking, was sentenced to a total term of 123 months in federal prison, to be followed by 6 years of supervised release, and fined $500.00. The offenses occurred on September 4-5, 2014, at the New Horizons Housing Complex, in Murphysboro, Jackson County. Evidence at the plea and sentencing hearings established that Brown-Wright sold crack cocaine to a confidential source working for law enforcement. When agents executed a search warrant at the New Horizons apartment where the drug sales had occurred, they located firearms, crack cocaine, a large amount of U.S. Currency, ammunition, and drug packaging materials. Young children were residing at the apartment containing the drugs and firearms. At sentencing, the district court also ordered the forfeiture of a Taurus, model PT-22, .22 caliber semiautomatic pistol, a Jennings, model J22, .22 caliber semiautomatic pistol, along with assorted ammunition.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and the Murphysboro Police Department. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
More Than 1,000 Stakeholders from Throughout Minnesota Convene to Define the Problem with Prescription Painkillers and Develop SolutionsRead the Press Release
Today in Minneapolis, more than 1,000 law enforcement, public health officials, health care professionals, attorneys, drug court representatives, medical students, state, tribal and local government staff, community leaders, recovering addicts and their families from across Minnesota are meeting to address the pain pill problem. The Pain.Pill.Problem. conference brings together experts from the medical, public health and law enforcement fields to look at all sides of opioid abuse and ultimately develop solutions to the problem.
The conference consists of six panels on the following topics:
- The Impact of Opioid Addiction
- Prescribing & Pain Culture
- Pharmacy & Distribution
- Law Enforcement
- Opioid Treatment
- Recovery, Prevention & the Role of Community
Conferees will also hear from speakers on these important issues, including Minnesota Governor Mark Dayton, United States Senator Amy Klobuchar, United States Congressman Tom Emmer, The Honorable Mary Bono, University of Minnesota President Eric Kaler, Dick Beardsley, and others.
“Each case of opioid diversion and addiction represents lives ruined, careers tossed aside and tragic collateral consequences,” said U.S. Attorney Andrew M. Luger. “Doctors, pharmacists, political leaders, legislators, regulators, and civic leaders must address this problem without finger pointing or blame. We need to work together to come up with solutions and that is what the Pain.Pill.Problem. conference is all about. We owe it to our kids, we owe it to our neighbors and we owe it to each other.”
“Narcotic painkillers are being over-prescribed in Minnesota, leading to addiction, abuse and serious consequences. In the last decade, overdose deaths have more than doubled. Painkillers now cause more deaths than heroin and cocaine combined. We need to have a conversation as a society about how we can treat pain in ways that restores function and this conference is a step in the right direction,” said Minnesota Department of Human Services Commissioner Lucinda Jesson.
“Prescription drug abuse has reached crisis levels, and we should leave no stone unturned in our efforts to reverse this deadly trend,” said United States Senator Amy Klobuchar. “I was proud to participate in today’s critical summit on developing new tools and sharing best practices to help fight this devastating epidemic. I will continue to work with all those who share my commitment to combatting prescription drug abuse on behalf of Minnesota families.”
“The sobering truth is more Minnesotan’s are dying from prescription drugs than virtually all other drugs combined,” said Drug Enforcement Administration Assistant Special Agent in Charge Dan Moren. “The source of these pills is not a foreign based drug cartel. The responsibility of reversing this deadly trend rests with our domestic law enforcement, medical/health care, pharmaceutical, and addiction treatment communities changing the way they do business – it starts by learning the facts at the Pain.Pill.Problem. Summit. The public is reminded to properly dispose of all unused and/or expired prescription drugs at the nearest collection site – this service is free and anonymous. For more information, visit www.DEA.gov.”
“Minnesota is facing the same crisis that the rest of the country is,” said the Honorable Mary Bono. “Opioid misuse, and now heroin use, have overtaken our communities like a plague. I applaud the organizers and supporters of the Pain.Pill.Problem. event and thank them for stepping up to address the crisis. Countless lives hang in the balance.”
“Too many people are dying every day across Minnesota from opioid overdose. Those deaths are preventable. I urge every family and community leader to learn what they can do to educate our youth and to take proactive steps to prevent addiction and overdose,” said Hennepin County Sheriff Rich Stanek. “As Sheriff of Hennepin County, I am proud of the partnerships among local, state, federal, and tribal law enforcement agencies to dismantle criminal drug operations and promote prevention.”
“For Minnesota to make progress on the issue of opioids it will require collaboration and engagement by all the stakeholders,” said Dr. W. Michael Hooten, a pain specialist and anesthesiologist at Mayo Clinic. “This conference offered a convening opportunity and I’m optimistic that we can take our learnings and move forward together.”
“This gathering today proves we’re all in this together,” said Nick Motu, Vice President of the Hazelden Betty Ford Institute for Recovery Advocacy. “We’ve made addressing the opioid crisis a bedrock of the advocacy efforts at our organization, and by coming together with others around solutions like we did today, we can make real progress against this epidemic.”
“There are no simple solutions for opiate addiction. To make a meaningful difference, we will need to engage a broad-based coalition,” said Brooks Jackson, MD, dean of the Medical School and vice president of Health Sciences at the University of Minnesota. “This conference is a great first step. We look forward to continuing this work going forward, addressing broader issues like health policy as well as day-to-day issues around care delivery and treatment of addiction.”
For more information, please visit: www.painpillproblem.com
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mescalero Apache Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Christopher Bigmouth, 25, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pleaded guilty this afternoon in Las Cruces, N.M., to an assault resulting in serious bodily injury charge. Under the terms of his plea agreement, Bigmouth will be sentenced to 84 months in prison followed by a term of supervised release to be determined by the court.
Bigmouth was arrested on Feb. 20, 2015, on a criminal complaint charging him with assaulting a 14-month-old child on Aug. 22, 2014, by dropping the victim on her head three times. It alleged that the assault occurred on the Mescalero Apache Indian Reservation in Otero County, N.M., The victim was seriously injured and required emergency brain surgery to reduce swelling of the brain.
During today’s proceedings, Bigmouth pled guilty to a felony information charging him with assault resulting in serious bodily injury. In entering the plea, Bigmouth admitted that on Aug. 22, 2014, he intentionally dropped the victim on the floor three times, and that his actions resulted in several injuries to the victim including significant brain swelling requiring emergency surgery and long term cognitive, motor and visual impairment. A sentencing hearing has yet to be scheduled.
This case was investigated by Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Medical Director and Three Therapists Convicted in $63 Million Health Care Fraud SchemeRead the Press Release
A federal jury in Miami late yesterday convicted the former medical director of, and three therapists employed by, a now-defunct health care provider of conspiracy to commit health care fraud and related charges for their roles in a scheme to fraudulently bill Medicare and Florida Medicaid more than $63 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Roger Rousseau, 73, of Miami; Doris Crabtree, 62, of Miami; Angela Salafia, 68, of Miami Beach, Florida; and Liliana Marks, 48, of Homestead, Florida, were found guilty of conspiracy to commit health care fraud. In addition, Rousseau was convicted of two counts of health care fraud. Sentencing is scheduled for Nov. 6, 2015, before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida.
Rousseau was the former medical director of Health Care Solutions Network Inc. (HCSN), a now-defunct partial hospitalization program (PHP) that purported to provide intensive treatment for mental illness. Crabtree, Salafia and Marks were therapists who worked for HCSN.
According to the evidence presented at trial, from approximately 2004 through 2011, HCSN billed Medicare and Medicaid for mental health services that were not medically necessary or never provided, and that HCSN paid kickbacks to assisted living facility owners and operators in Miami who, in exchange, referred beneficiaries to HCSN.
The trial evidence showed that Rousseau routinely signed what he knew to be fabricated and altered medical records without reviewing the substance of the records and, in most instances, without ever meeting with the patients. The evidence at trial also demonstrated that Crabtree, Salafia and Marks fabricated medical records to support HCSN’s false and fraudulent claims for reimbursement for PHP services.
In total, HCSN submitted approximately $63.7 million in false and fraudulent claims to Medicare and Medicaid. Medicare and Medicaid paid approximately $28 million on those claims.
In November 2014, following a jury trial, co-defendants Blanca Ruiz and Alina Fonts were convicted of conspiracy to commit health care fraud, and Fonts also was convicted of health care fraud. In February 2015, both Ruiz and Fonts were sentenced to serve six years in prison.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. The case was prosecuted by Trial Attorneys Allan J. Medina, Lisa H. Miller and Bryan D. Fields of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Maryland man guilty of possessing stolen firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Nevyou Alemu, 21, of Gaithersburg, Maryland, was convicted today of possessing stolen firearms, United States Attorney William J. Ihlenfeld, II, announced.
Alemu conspired with Kristopher Seth Davis, 20, of Silver Spring, Maryland and Adesola Vanzant, 21, of Upper Marlboro, Maryland, to steal firearms. In April 2014, the defendants traveled across state lines from Maryland to New Milton, West Virginia and stole approximately 14 firearms and hundreds of rounds of ammunition from a residence. The defendants then transported the stolen firearms and ammunition back across state lines when they returned from West Virginia to Maryland. Specifically, the defendants were discovered in April 2014 in Doddridge County, West Virginia in possession of a stolen .22 caliber pistol and a 20 gauge shotgun.
Following a 2 day trial, U.S. District Judge Irene M. Keeley found Alemu guilty of one count of “Conspiracy to Possess Stolen Firearms,” and one count of “Aiding and Abetting the Possession of Stolen Firearms.” He faces up to five years in prison and a fine of up to $250,000 on the conspiracy charge and up to ten years in prison and a fine of up to $250,000 on the possession charge.
Davis and Vanzant each previously pled guilty to one count of “Aiding and Abetting Possession of Stolen Firearms.” They each face up to ten years in prison and a 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. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Marvin Sharp charged with Child Molesting, Sexual Misconduct with a Minor and Possession of Child PornographyRead the Press Release
(Indianapolis, Ind.) – Marion County Prosecutor Terry Curry and United States Attorney Josh J. Minkler announced today the filing of formal charges against Marvin Sharp for child molestation and possession of child pornography. Sharp has been charged with four counts of Child Molesting (two C Felonies and two Level 4 Felonies) and three counts of Sexual Misconduct with a Minor (Level 5 Felonies) by the Marion County Prosecutor’s Office for allegations of inappropriate behavior with a young woman while acting as her gymnastics coach. Sharp has also been charged with knowing receipt of child pornography and knowing possession of child pornography by the United States Attorney’s Office.
“It is a parent’s worst nightmare that someone whom we entrust with care and guidance of our children -whether a coach, teacher, or otherwise - would abuse that trust and harm our children. Anyone who would harm our children in those circumstances, as we have alleged here, will be held fully accountable for their crimes,” Prosecutor Curry stated.
“Protecting our children has been and will remain a top priority in this office,” said Minkler. “Those who prey on the vulnerable, who cannot protect themselves, can count on the full wrath of state and federal prosecution.”
According to the probable cause affidavit filed in Marion County Superior Court, Sharp is accused of taking inappropriate photographs and inappropriately touching a young woman on many occasions while he was her gymnastics coach. According to the young woman, Sharp frequently told her not to tell her parents about photo-shoots and physical therapy sessions where the inappropriate touching occurred. The alleged acts took place at the defendant’s place of business, Sharp’s Gymnastics Academy, in Indianapolis as well as during an out-of-state trip that the victim and Sharp took together as competitor and coach for a gymnastics event.
Child pornography files were allegedly discovered on computers belonging to Sharp as a result of digital and forensic evidence seized during the execution of search warrants on Sharp’s home and Sharp’s Gymnastics Academy. According to the criminal complaint filed in U. S. District Court, thousands of sexually explicit images of minors were found in a safe in his home as well as images in a file cabinet at his gymnasium. The images displayed minor boys and girls in sexually explicit poses.
Anyone with information concerning additional potential victims is encouraged to call and report to 1-877-ISP-1TIP (1-877-477-1847). Messages left at this hotline will be directed to investigating officers.
A charge of a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
NOTE: The state charging information and probable cause affidavit, federal complaint, and mug shot of Marvin Sharp are attached.
Manager in Counterfeit Credit Card Ring Sentenced to over Six Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Navee Diaz, a/k/a India, age 40, of Owings Mills, Maryland today to 76 months in prison, followed by five years of supervised release, for bank fraud conspiracy and aggravated identity theft, arising from a scheme to use of stolen credit and debit card information to manufacture counterfeit credit cards used to buy merchandise and services. Judge Quarles also entered an order requiring Diaz to pay restitution of $126,318.99.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; Interim Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Chief Ross C. Buzzuro of the Ocean City Police Department; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Newport News Police Chief Richard W. Myers; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to her plea agreement, starting before January 1, 2011 and continuing through June 2014, Diaz conspired with co-defendants William Downey, Michael Crew and others to manufacture counterfeit debit and credit cards bearing stolen and unauthorized credit and debit card account numbers then use the counterfeit cards to purchase goods and services. Diaz initially became involved in the scheme when her friend, Downey, introduced her to Crew, with whom she became romantically involved. Crew had an embossing machine, and made credit cards using altered gift cards and the credit card and debit card numbers stolen from others. The stolen credit card account numbers were obtained from a variety of sources. Once a valid number was obtained, Diaz and other co-conspirators would use those numbers to obtain other valid numbers, which they would confirm by calling customer service for the issuing financial institution. These numbers were used to manufacture counterfeit access devices bearing the stolen credit and debit card account numbers.
Crew sold the counterfeit credit cards and recruited others, including Diaz, to go out and make purchases on Crew’s instructions. Ultimately, Diaz began to provide cards to others and to take and fulfill orders for items to be purchased with the counterfeit cards. Diaz recruited others into the scheme, obtained cards as needed from Crew and co-defendant Jason Evans, and even manufactured cards herself. She exchanged dozens of text messages each day taking orders, arranging for cards and workers, and conducting other business of the conspiracy. Diaz went out shopping with the cards on a daily basis, with and without other workers in the scheme.
During her participation in the conspiracy, Diaz and her co-conspirators obtained or attempted to obtain extensions of credit from financial institutions of between $200,000 and $400,000, using the financial account numbers of real people. More than 250 individuals and institutions were defrauded by the scheme.
Michael Crew, age 55, of Owings Mills, and Jason Evans, age 32, of Millsboro, Delaware previously pleaded guilty to the same charges and were sentenced to nine years in prison and four years in prison, respectively, and were each ordered to pay restitution of $126,318.99. William Downey, age 43, of Gwynn Oak, Maryland, his brother, Stanley Downey, age 49, formerly of New York, also pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on October 7, 2015, and October 27, 2015, respectively, both at 1:00 p.m. The Downey brothers remain detained pending sentencing.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service; Howard County, Baltimore City, Baltimore County, Howard County, Ocean City and Newport News Police Departments, HSI Baltimore and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Man Who Pushed Woman Out of Car Pleads Guilty to Carjacking, Firearm ChargeRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., man pleaded guilty Tuesday to federal charges he pointed a gun at a woman and pushed her out a driver’s side door before stealing her car, U.S. Attorney Barry Grissom said today.
John Michael Devosha, 25, Kansas City, Kan., pleaded guilty to one count of carjacking and one count of using a firearm in furtherance of carjacking.
In his plea, he admitted that on Oct. 22, 2013, was already under federal indictment in another case when he wrecked a stolen pickup truck near 59th and Leavenworth Road in Kansas City, Kan. He abandoned the car and fled on foot in search of another car.
A woman who was driving a 2002 Cadillac Deville was stopped in traffic congestion created by the wreck. Devosha used the handle of his gun to break the woman’s front passenger window and enter her car. He pointed a gun at the woman and told her to drive away fast. Before she could do it, he pushed her out the driver’s side door and onto the road, where she stumbled and injured herself. Then he drove away in her car.
Three days later, Pottawatomie Tribal Police arrested him in Jackson County, Kan., after a 45-mile high speed chase on U.S. Highway 75.
Sentencing is set for Nov. 2, 2015. Both parties have agreed to recommend a sentence of 180 months to run consecutively to a 10-year sentence in the previous federal case. Grissom commended the Pottawatomie Tribal Police, he Kansas City, Kan., Police Department, the Bureau Alcohol, Tobacco, Firearms and Explosives and Special Assistant U.S. Attorney Erin Tomasic, as well as agencies that participated in the arrest including officers from Brown, Jefferson and Jackson counties, as well as police from Holton and Sabetha and the Kickapoo and Sac and Fox tribes.
Leonardtown Man Sentenced to Six Years in Prison for Distribution of Heroin that Resulted in the Death of a FriendRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Joshua Scott Schellhase, age 31, of Leonardtown, Maryland today to six years in prison followed by three years of supervised release for distribution of heroin. A close friend of Schellhase died as a result of using the heroin distributed by Schellhase.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and St. Mary’s County Sheriff Tim Cameron.
According to his plea agreement, during 2012 Schellhase was close friends with an individual with whom Schellhase used heroin or other opiates on a daily basis. Schellhase and the individual would provide heroin to each other as they were able to obtain it.
On October 11, 2012, the individual contacted Schellhase by text message and Schellhase agreed to give the individual some heroin that Schellhase had recently purchased. During the early evening, Schellhase drove to a residence in Calloway, Maryland. The individual came out of the house and Schellhase gave the individual a small amount of heroin and two cigarettes. The individual went back into the house, went into the bathroom and ingested the heroin he had received from Schellhase. About 15 minutes later, the individual’s girlfriend knocked on the bathroom door, but received no response. She opened the door and discovered the individual slumped over and non-responsive. Emergency medical personnel were called and attempted to revive the individual, but the individual died.
The cause of death was determined to be morphine intoxication. The victim died as a result of ingesting the heroin provided by Schellhase.
United States Attorney Rod J. Rosenstein praised the DEA and St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.
Last of Four Defendants Charged in the March 2014 Heroin Overdose Death of a Dallas Teenager Admits GuiltRead the Press Release
DALLAS — A 37-year-old heroin dealer is the latest, and last, defendant to appear in federal court and plead guilty to a felony drug offense stemming from his role in the March 2014 heroin overdose death of a Dallas teenage girl, Rian Hannah Lashley, announced John Parker, U.S. Attorney for the Northern District of Texas.
Jimison Erik Coleman, 37, of Los Angeles, California, appeared this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin. Coleman is the last of four defendants charged in the case to plead guilty. The other three defendants charged in the case, Kathryn Grace Dirks, a/k/a “Kat,” 25; Glen William Brunton, 28; and Cierra Allyn Rounds, 27; also pleaded guilty to that offense. Each defendant faces a maximum statutory sentence of 20 years in federal prison and a $1 million fine; sentencings are set for the upcoming months.
According to documents filed in his case, Coleman admits that from December 2013 until April 2015, he routinely distributed heroin and other drugs to multiple customers, some of whom worked as dancers in various strip bars in the Dallas area as well as clubs in Southern California. From time to time, Coleman fronted quantities of drugs to particular dancers who then, at his direction, sold the drugs to patrons and/or dancers with whom they came in contact. During this time, Coleman distributed multiple grams of heroin, multiple hits of ecstasy and molly, multiple ounces of cocaine and various prescription drugs to numerous customers in North Texas and elsewhere.
During the early morning hours of March 25, 2014, Coleman and Dirks traveled from a residence in Plano, Texas, to a nearby IHOP restaurant, where they joined Rounds, Brunton, and Rian Lashley, and the group ate breakfast. Coleman admits that he had provided Dirks, Rounds and Brunton with heroin on numerous occasions prior to that date.
Late that morning in a parking lot near the IHOP, Coleman gave Brunton five baggies totaling one gram of “China White” heroin and directed him to deliver the heroin to Lashley, who was with Dirks and Rounds in Lashley’s vehicle. Brunton, at Coleman’s direction, distributed the heroin to Rian Lashley for $120.00. After acquiring the heroin, Rounds, Dirks and Lashley left the parking lot in Lashley’s vehicle and traveled to a residence in Dallas where Rounds was living. Coleman and Brunton left the parking lot in a separate vehicle.
On March 25, 2014, Rian Lashley died at a residence after being injected with the heroin that she purchased from Coleman earlier in the day. Coleman was not present when Lashley was injected with the heroin that, according to the autopsy, resulted in her death.
The Dallas Police Department, the FBI, the U.S. Marshals Service, and the Buena Park, California, Police Department investigated. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney Phelesa Guy are prosecuting.
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Las Cruces Resident Sentenced to Five Years in Federal Prison for Trafficking Heroin in Doña Ana CountyRead the Press Release
ALBUQUERQUE – Angel Linares, 20, of Las Cruces N.M., was sentenced today in Las Cruces federal court to five years in federal prison followed by four years of supervised release for heroin trafficking charges in connection with five cases filed in 2013, as the result of a multi-agency investigation into drug trafficking in Doña Ana County, N.M.
Linares, together with a Mexican national and 19 other Las Cruces residents, were charged with heroin trafficking offenses in five indictments filed in Nov. 2013, as a result of a multi-agency investigation led by the FBI that targeted the heroin trafficking activities of Jovita Belmonte-Gonzalez in Doña Ana County. Belmonte-Gonzales, 45, a Mexican national from Ciudad Juarez, Chihuahua, Mexico, was named as the lead defendant in four of five indictments which charged her with supplying heroin to five drug trafficking organizations that distributed heroin in Doña Ana County.
The lead defendant, Belmonte-Gonzalez, pled guilty to heroin trafficking charges in four of the five cases in June 2014, and admitted conducting frequent heroin transactions with her co-defendants between June 2013 and Oct. 2013. Court records reflect that Belmonte-Gonzalez typically negotiated heroin sales by telephone from Juarez and her co-defendants traveled from Doña Ana County to Juarez where they purchased the heroin from her and later distributed the drugs in Doña Ana County. Belmonte-Gonzales faces a mandatory minimum of ten years in prison and a maximum of life in prison, and will be deported after she completes her prison sentence. She remains in federal custody pending her sentencing hearing, which has yet to be scheduled.
Linares entered a guilty plea on Oct. 7, 2014, to a conspiracy to possess heroin with intent to distribute charge. Linares admitted to facilitating the trafficking of approximately 250 grams of heroin between co-defendants and Belmonte-Gonzalez from Sept. 21, 2013 through Oct. 22, 2013.
All 21 of the defendants as a result of the investigation have entered guilty pleas. Ten defendants have been sentenced, and the rest are currently awaiting sentencing hearings.
These cases are being prosecuted by Assistant U.S. Attorney E. Garreth Winstead, III, of the U.S. Attorney’s Las Cruces Branch Office. The investigation leading to the charges in the four cases was led by the Las Cruces office of the FBI in collaboration with U.S. Customs and Border Protection, the U.S. Border Patrol, the Las Cruces office of the DEA, the U.S. Marshals Service, the Las Cruces Police Department and the Doña Ana County Sheriff’s Office.
The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Largest Online Male Escort Service RaidedRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging the CEO of Rentboy.com, Jeffrey Hurant, and six Rentboy.com employees with conspiring to violate the Travel Act by promoting prostitution. The defendants were arrested this morning and are scheduled to appear before United States Magistrate Judge Marilyn Go at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Glenn Sorge, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; and William J. Bratton, Commissioner, New York City Police Department.
As alleged in the complaint, Rentboy.com is a male escort advertising site founded in 1997 which hosts thousands of paid advertisements. While the site has disclaimers stating that the advertisements are for companionship and not sexual services, Rentboy.com is designed primarily for advertising illegal prostitution. The website charges subscribers a minimum monthly fee of $59.95 and up to several hundred dollars to advertise sexual services. Once the fee is paid, subscribers can select from a number of categories created by Rentboy.com the sexual services they are willing to perform and the price charged. Subscribers can also include their physical descriptions and provide links to another website where their sexual services are rated by prior customers. Between 2010 and 2015, Rentboy.com had over $10 million in gross proceeds.
“As alleged, Rentboy.com attempted to present a veneer of legality, when in fact this internet brothel made millions of dollars from the promotion of illegal prostitution,” stated Acting United States Attorney Currie. Mr. Currie thanked the Drug Enforcement Administration’s Field Office in New York for their assistance in the investigation.
HSI Acting Special Agent in Charge Sorge stated, “The facilitation and promotion of prostitution offenses across state lines and international borders is a federal crime made even more egregious when it’s blatantly advertised by a global criminal enterprise,” said Acting Special Agent in Charge Sorge of HSI New York. “HSI will use its unique authorities to disrupt and dismantle such organizations and seize the millions of dollars in illegal proceeds they generate.”
“As alleged, Rentboy.com profited from the promotion of prostitution despite their claim that their advertisements were not for sexual services. Thanks to the detectives, agents, and prosecutors of the U.S. Attorney’s Office in the Eastern District involved in this investigation, these individuals will be held accountable for running this racket,” said Police Commissioner Bratton.
In addition, earlier today the government served warrants authorizing the seizure of over $1.4 million of alleged criminal proceeds from six bank accounts. The government also took steps to restrain the domain name www.rentboy.com.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted each defendant faces up to five years imprisonment and a fine of up to $250,000.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Tyler Smith and Melanie Hendry are in charge of the prosecution.
The Defendants:
JEFFREY HURANT
Age: 50
New York, NYMICHAEL SEAN BELMAN
Age: 47
New York, NYCLINT CALERO
Age: 48
New York, NYEDWARD LORENZ ESTANOL
Age: 23
New York, NYSHANE LUKAS
Age: 41
New York, NYDIANA MILAGROS MATTOS
Age: 43
Queens, NYMARCO SOTO DECKER
Age: 28
New York, NYE.D.N.Y. Docket No. 15-MJ-780
Kansas Man Sentenced to Prison for Supplemental Medicare Insurance ScamRead the Press Release
DES MOINES, IA – On August 21, 2015, Brian Curtis Henton, 38, of Olathe, Kansas, was sentenced by United States District Court Judge James E. Gritzner to 12 months and one day in federal prison based on his earlier guilty pleas to two counts of mail fraud, announced United States Attorney Nicholas A. Klinefeldt. Judge Gritzner also ordered Henton to pay $23,300.15 in restitution to Equitable and Cigna insurance companies, and to serve three years of supervised release following his release from federal prison.
According to the plea agreement, from in or about April 2013 until October of 2013, Henton used his Iowa Insurance Producer License and fraudulent applications to sell approximately 120 Equitable and Cigna Supplemental Medicare insurance policies to Kansas residents. Henton admitted that he sold the insurance policies to Kansas residents, but entered false Iowa addresses, false Iowa telephone numbers, and forged applicants’ signatures on the applications when submitted to the insurance companies. As a result of the fraud, Henton received commission payments that he was not entitled to from Equitable and Cigna.
This matter was investigated by the Iowa Insurance Fraud Bureau and the Federal Bureau of Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Independence Man Indicted for Stealing $247,000 from EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the financial comptroller of a North Kansas City, Mo., business was indicted by a federal grand jury today for a wire fraud scheme in which he embezzled more than $247,000 from his employer over five years.
John S. Kruse, 48, of Independence, Mo., was charged in a five-count indictment returned by a federal grand jury in Kansas City, Mo.
Kruse was employed as the financial comptroller of BCC Merchant Solutions, a North Kansas City firm that provides electronic payment systems, e-commerce systems, business capital and marketing services to other companies.
Today’s indictment alleges that Kruse engaged in a scheme to steal at least $247,508 from BCC Merchant Solutions from April 2010 until his resignation in July 2014. Kruse allegedly made at least 213 unauthorized wire transfers from his employer’s bank account into his personal bank account. Through his scheme, the indictment says, Kruse embezzled $5,776 in 2010; $36,989 in 2011; $71,868 in 2012; $76,225 in 2013; and $56,648 in 2014.
According to the indictment, Kruse used the money to pay for extravagant trips for his family to Las Vegas, Nev., and to Disneyworld. He allegedly spent $50,934 at convenience stores and for gasoline; $41,197 on entertainment; $138,186 for groceries and general merchandise; $65,416 through PayPal; $49,105 for travel and leisure; $49,773 for miscellaneous; and $50,934 for cash.
As the financial comptroller, Kruse was in charge of paying out sales commissions and bank reconciliations, along with keeping records within QuickBooks. In the course of his job, Kruse was authorized to access BCC Merchant Solutions’ bank account. To hide his embezzlement, the indictment says, Kruse manipulated the QuickBooks records to falsely reflect that the money he transferred into his account was being used elsewhere. Kruse allegedly falsified who the deposits were made to, indicating they were payments made on sales commissions and bank reconciliations.
Kruse is charged with five counts of wire fraud. The indictment also contains a forfeiture allegation, which would require Kruse to forfeit to the government $247,508, representing the proceeds of the alleged wire fraud scheme.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the U.S. Secret Service and the North Kansas City, Mo., Police Department.
Houston Jury Convicts Illegal Alien for Possession of a FirearmRead the Press Release
HOUSTON – A federal jury has convicted a 34-year-old illegal alien who resided in Houston on one count of being an illegal alien in possession of a firearm, announced U.S. Attorney Kenneth Magidson. The verdict was returned less than an hour ago against Ciro Gomez Cardenas, 34, of Guerrero, Mexico, following a two-day trial and approximately two hours of deliberation.
During trial, the jury heard the testimony of several law enforcement officers who stated they had met with Cardenas at his residence in Houston on March 2, 2015. At that time, he admitted to having a firearm, a 20-gauge Mossberg pistol grip shotgun. In addition to the gun, Cardenas also possessed 64 rounds of 20-gauge and 12-guage shotgun shells. Cardenas was in the country illegally and per federal law, not permitted to possess a firearm.
Agents conducted a search of the residence and discovered the weapon and ammunition, which were manufactured in Connecticut and Arkansas, respectfully, and had traveled in interstate commerce.
Cardenas argued that he was holding the shotgun for a friend who had been previously deported to Mexico approximately two years ago. He further attempted to convince the jury that because he did not purchase the gun, he could not be in possession of it.
The jury was not persuaded and ultimately found him guilty as charged.
U.S. District Judge Keith P. Ellison presided over the trial and has set sentencing for Nov. 17, 2015, at which time Cardenas faces a maximum of up to 10 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The charges are the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations. Authorities with Citizenship and Immigration Services also provided testimony at trial.
Special Assistant U.S. Attorney Rick Bennett and Assistant U.S. Attorney Julie Searle prosecuted the case.
Hawarden Man Sentenced to Thirteen Years for Distributing Child PornographyRead the Press Release
A man who distributed child pornography was sentenced August 19, 2015 to thirteen years in federal prison.
James Ney, age 33, of Hawarden, Iowa, received the sentence after a February 19, 2015 guilty plea to one count of distribution of child pornography. At the guilty plea hearing, Ney admitted that, in 2013, he distributed child pornography to others.
Ney was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Ney was sentenced to 156 months’ imprisonment. A special assessment of $100 was imposed, and he must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-4072.
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Hancock County man sentenced for heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Raymond James Ripley, Sr., 29, of New Cumberland, West Virginia, was sentenced today to 15 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Ripley conspired with others to possess and sell heroin in Hancock County, West Virginia throughout 2013 and 2014. He pled guilty in June 2015 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.”
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Hancock, Brooke, Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp presided.