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8 October 2015
Niagara Falls Man Indicted on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a six-count indictment charging Philip Vincent, 37, of Niagara Falls, NY, with manufacturing marijuana, possession with intent to distribute marijuana, possession with intent to distribute crack cocaine, maintaining a drug premises, possession of a weapon in furtherance of drug trafficking, and being a felon in possession of a firearm. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years and a $1,000,000 fine.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to the indictment and a previously filed complaint, on December 2, 2014, the U.S. Marshals Violent Felony Fugitive Task Force encountered the defendant while looking for a fugitive defendant. Officers searched Vincent’s 20th Street residence and discovered a .38 caliber revolver along with marijuana plants and crack cocaine.
Vincent was arraigned today before U.S. Magistrate Judge Hugh B. Scott and is being held.
The indictment is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, the U.S. Marshals Service, under the direction of Charles Salina, and the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
New York Men Charged with Federal Access Device FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment yesterday against Vernal Moffet, age 29, of Queens, New York, Rushane Kennedy, age 23, of Rosedale, New York and Shavouy Paisley, age 24 of Queens, New York. The indictment charges the three men with possession of unauthorized access devices and criminal conspiracy to possess unauthorized access devices.
According to United States Attorney Peter Smith, Moffet, Kennedy and Paisley were stopped in Cumberland County in September 2014 by Hampden Township Police Department after making suspicious purchases at CVS and Rite Aid establishments located on Carlisle Pike in Mechanicsburg, Pennsylvania. The police seized more than 100 counterfeit Visa cards from the vehicle the three men had been traveling in, along with gift cards.
During the investigation, the United States Secret Service determined the account numbers associated with the magnetic strips on the cards belonged to account holders from dozens of banks and institutions across the country. After reviewing bank records, the Secret Service identified more than a half a dozen retail establishments on the Carlisle Pike where the defendants attempted or made purchases using these unauthorized account numbers.
This investigation is being conducted by the United States Secret Service and the Hampden Township Police Department and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mine Operator Convicted of Clean Water Act CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that James Slade, 57, of Calgary, Canada, was convicted after a two week jury trial of two counts of violating the Federal Clean Water Act by polluting the Salmon River with turbid wastewater from the Platinum Creek Mine he was in charge of operating. A sentencing hearing is scheduled for November 12, 2015, and Mr. Slade was ordered to surrender his Canadian passport and remain in the United States pending his sentencing.
Evidence was presented at trial that the discharges from the mine were hundreds of times over the legal limits set in the National Pollution Discharge Elimination System (NPDES) water quality permit issued for the mine. The jury deliberated for two days before convicting the defendant of two misdemeanor Clean Water Act crimes for discharging polluted wastewater during the 2010 and 2011 mining seasons in violation of the NPDES permit. The jury was deadlocked and could not reach a decision on several felony violations, and found the defendant not guilty on other charges, including finding him not guilty of making a false annual report to the Alaska Department of Conservation that was submitted by another senior manager. That manager, Robert Pate, has previously pleaded guilty to making that false statement.
The Salmon River is located in Western Alaska, running past the Platinum Creek Mine and emptying into Kuskokwim Bay. It passes through the Togiak National Wildlife Refuge before entering the bay, and all five species of Alaska Salmon spawn in the river. Evidence at trial was that a flow of up to 1200 gallons per minute of wastewater was discharged from the mine’s processing plant into one or more settling ponds that were not lined, and that did not contain the wastewater. Instead, the wastewater flowed out of the ponds and into the Salmon River, turning it from crystal clear to dirty brown.
First Assistant U.S. Attorney Kevin Feldis prosecuted the case with a Chris Costantini, as Senior Trial Attorney from the Department of Justice’s Environmental Crimes Section. Mr. Feldis stated that “the state and federal agencies that have a role in permitting and approving mining in Alaska rely on those who operate mines, as they rely on any permitted business that operates in remote locations, to self-report when they violate the law. That did not happen in this case. The mine said it was going to do one thing when it submitted its Mine Plan of Operations, and it ended up doing something very different. Federal Agents from the Bureau of Land Management and the Environmental Protection Agency conducted an excellent investigation in this case. Mr. Slade and the company he worked for are no longer mining, and there is no longer any pollution entering the Salmon River.”
Mr. Slade was the Chief Operating Officer for XS Platinum, the company that owned the mining claims, and he is the third manager or senior executive of that company to be convicted in this case. Robert Pate, who was employed as the mine manager previously pled guilty to violating the Clean Water Act, along with James Staeheli, the prior processing plant manager, who also pled guilty to a Clean Water Act crime. All three individuals worked for the now defunct XS Platinum, Inc. That company was registered in name only in Delaware, and was 100% owned by an offshore company. Two other senior executives from XS Platinum, both Australian citizens, were also indicted but have refused to return to the United States to stand trial on the charges.
The investigation was conducted by the U.S. Department of Interior Bureau of Land Management Office of Law Enforcement and Security, and the U.S. Environmental Protection Agency Criminal Investigation Division. Mr. Slade faces maximum penalties of one year in jail and a $100,000 fine for each of the two counts of conviction.
Miami-Area Pharmacy Owner Sentenced to 46 Months in Prison for Role in $1.8 Million Medicare Fraud SchemeRead the Press Release
A Miami-area pharmacy owner was sentenced today to 46 months in prison for his role in the submission of more than $1.8 million in fraudulent claims to Medicare.
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 R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Evelio Fernandez Penaranda, 47, of Miami, pleaded guilty to one count of health care fraud on July 23, 2015. In addition to today’s prison sentence, Chief U.S. District Court Judge K. Michael Moore of the Southern District of Florida ordered Penaranda to pay $1,876,241 in restitution.
Penaranda owned Naranja Pharmacy Inc. According to admissions made in connection with Penaranda’s guilty plea, between May 2013 and March 2014, Naranja Pharmacy submitted fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries. In connection with his guilty plea, Penaranda admitted that Naranja Pharmacy submitted these false claims by obtaining and using the unique identifying information of Medicare beneficiaries and doctors without their consent.
Penaranda also admitted that he controlled Naranja Pharmacy’s bank accounts, and that he transferred the payments received from Medicare to himself and his accomplices. According to admissions made in connection with Penaranda’s plea, during the course of the scheme, Naranja Pharmacy submitted over $1.8 million in false claims for prescription drugs to the Medicare program.
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 Attorney Nicholas E. Surmacz 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, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the 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 Team, go to: www.stopmedicarefraud.gov.
Maumee man faces child pornography chargesRead the Press Release
Roberto Ledesma, 52, of Maumee, was charged with receipt and distribution of visual depictions involving the sexual exploitation of a minor, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentences will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service. The case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Martinsburg man convicted of cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jesus Demas Valencia, 48, of Martinsburg, was convicted of cocaine trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Valencia sold cocaine in Berkeley County, West Virginia. He pled guilty today to one count of “Distribution of Cocaine.” He faces up to 20 years in prison and fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Ana Krasinski, Jarod Douglas, and Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Manhattan U.S. Attorney Files and Settles Civil Fraud Lawsuit Against UFC Aerospace and Douglas B. Davis for Engaging in Fraudulent Conduct in Violation of the Small Business ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Melvin F. Williams, Jr., General Counsel of the U.S. Small Business Administration (“SBA”), Peggy E. Gustafson, SBA Inspector General, and Craig W. Rupert, Special Agent in Charge of the Northeast Field Office of the Defense Criminal Investigative Service (“DCIS”), announced today that the United States has filed, and simultaneously settled, a civil fraud lawsuit against UFC AEROSPACE LLC (“UFC”) and DOUGLAS B. DAVIS, the former president of UFC, for engaging in fraudulent conduct in violation of the Small Business Act, 15 U.S.C. § 632(n), in order to secure numerous lucrative defense subcontracts with government contractors. As alleged in the amended complaint-in-intervention, UFC falsely certified to government contractors that UFC was a woman-owned small business (“WOSB”) when UFC at no point met either requirement for WOSB status under the Small Business Act. Specifically, no women were majority owners of UFC or managed or controlled UFC’s management and daily business operations. UFC made these misrepresentations, as the amended complaint-in-intervention alleges, because it believed that WOSB status provided a competitive advantage in obtaining contracts that it knew were funded by the United States government, and the government contractors in turn made representations to the government regarding its WOSB hiring. In the settlement, approved in Manhattan federal court by U.S. District Judge William H. Pauley III, UFC and DAVIS admitted and accepted responsibility for the fact that UFC never qualified for WOSB credit under the Small Business Act and will pay the Government $20,015,956.92.
Manhattan U.S. Attorney Preet Bharara said: “The Small Business Act serves the important purpose of increasing legitimate participation by woman-owned businesses, and when business owners engage in fraud that undermines this purpose, they need to be held to account. I want to thank the SBA Office of General Counsel, the SBA Office of Inspector General, the Defense Criminal Investigative Service, and the Procurement Fraud Division of the Air Force Materiel Command Law Office for their invaluable work on this case.”
SBA General Counsel Melvin F. Williams, Jr., said: “This case represents the cooperative effort of SBA’s Offices of the General Counsel and the Inspector General and the Department of Justice to uncover and remedy fraud in our procurement programs. Uncovering and pursuing fraud cases is one of SBA’s highest priorities.”
SBA Inspector General Peggy E. Gustafson said: “This settlement sends an important message that falsely certifying a company’s status as a Woman Owned Small Business is unacceptable and bears a significant consequence. We will continue to aggressively pursue parties that wrongfully obtain both prime and subcontracting opportunities for small businesses that are legitimately owned and controlled by women. I want to thank the U.S. Department of Justice for its dedication to reaching a settlement in this case.”
DCIS Special Agent in Charge Craig W. Rupert said: “This settlement is evidence of the continuing efforts of the Defense Criminal Investigative Service and our law enforcement partners to assure integrity within the Defense procurement process. The Department of Defense relies on numerous certifications from our contractors and any fraud in this process has a serious impact throughout this industry. DCIS will continue to aggressively pursue allegations of fraud and corruption harmful to U.S. taxpayers and the Department.”
The following allegations are based on the amended complaint-in-intervention filed Monday in Manhattan Federal court:
The Small Business Act, which provides that it is the policy of the United States that small businesses owned and controlled by women should have the “maximum practicable opportunity to participate in the performance of [federal] contracts,” defines a “woman owned small business” (“WOSB”) to mean that women own 51% of the company and “the management and daily business operations of the business are controlled” by women. 15 U.S.C. §§ 637(d)(1), 632(n). Prime contractors that obtain federal funds are required to negotiate with the procuring authority a subcontracting plan setting forth, among other things, what percentage of the work will be given to WOSBs, and the Comprehensive Subcontracting Plan Group of the Defense Contract Management Agency is responsible for ensuring that Government defense contractors meet all of the requirements for hiring small businesses, including WOSBs.
UFC began claiming WOSB status at least beginning in late 2001, by representing to contractors UFC knew were doing work with the federal government that it was a WOSB. UFC falsely relied on the purported ownership interest of the wives of the actual owners, John Davis and DOUGLAS DAVIS, to make these representations. UFC continued to represent that it was a WOSB at various times until 2011, and earned millions of dollars on the contracts procured with those representations. UFC did so because it understood that this status mattered both to the contractors and to the Government, and it believed that it was obtaining a competitive advantage by claiming to be a WOSB. However, at no time during the entire time period from 2001 to 2011 did UFC ever qualify under the Small Business Act as a WOSB. The only ownership interest that the wives of John and DOUGLAS DAVIS had in UFC was through trusts that were entirely controlled by John and DOUGLAS DAVIS, and under which the women were entitled to a maximum of only 5% of the trusts’ assets. Moreover, neither woman controlled or managed the company at any time. In fact, neither woman had company email accounts, attended management meetings, or spent regular time in the office during the relevant time period.
In the stipulation of settlement with the Government, defendant DOUGLAS DAVIS admitted, acknowledged, and accepted responsibility for the following: From 2001 to 2011, he was the President of UFC and controlled the management and business operations of UFC, and UFC certified that it was a WOSB to contractors UFC knew were conducting millions of dollars of business with the United States in order to obtain a competitive advantage with those contractors. At no time during the relevant period did UFC actually meet either of the statutory requirements for claiming WOSB status.
Defendant UFC admitted, acknowledged, and accepted responsibility for the fact that at various times between the years 2001 and 2011 inclusive, UFC certified that it was a WOSB to contractors that were conducting millions of dollars of business with the United States in order to obtain a competitive advantage with these contractors, even though at no point did UFC meet the statutory requirements for claiming WOSB status.
Mr. Bharara praised the SBA Office of General Counsel, the SBA Office of Inspector General, the Defense Criminal Investigative Service, and the Procurement Fraud Division of the Air Force Materiel Command Law Office for their invaluable work on this case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Ellen London and Mara E. Trager are in charge of the case.
Manhattan Man Charged with Sexual Exploitation, Enticement, and Child Pornography CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that MATTHEW TIVY was arrested in Manhattan today and charged in a criminal complaint with two counts stemming from his sexual exploitation and enticement of a minor and his receipt and distribution of child pornography.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Matthew Tivy took advantage of a minor for his own sexual gratification, even when he knew the minor was only in high school. He then allegedly shared the video he recorded of his encounter with others. Tivy allegedly targeted and exploited vulnerable and innocent children, and for that, he will now face the criminal consequences. I want to thank the FBI and the Manhattan District Attorney’s Office for its collaboration in this investigation.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “As alleged, Tivy used a dating app to meet minors, even acknowledging their age on text messages after they met. He then allegedly shared the sexually explicit videos of the minors with others through internet sharing communities. This case would not be possible without the outstanding collaboration between the FBI and the Office of Manhattan’s District Attorney Cyrus R. Vance, Jr. The FBI will continue to investigate and bring to justice those who sexually exploit our children.”
According to the Complaint[1]:
From December 2014, TIVY initiated online communications with a fourteen- or fifteen-year-old boy (“Victim-1”), and enticed Victim-1 to engage in illegal sexual activity. The Complaint further alleges that TIVY engaged in sexual acts with Victim-1, enticed Victim-1 to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and then distributed these visual depictions to others online.
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TIVY, 53, of Manhattan, New York, is charged with one count of enticing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, which carries a maximum penalty of 30 years in prison. TIVY is also charged with one count of receipt and distribution of child pornography, which a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
There may be more victims of this alleged conduct; if you have information report, call the FBI at 212-384-1000 or https://tips.fbi.gov/.
Mr. Bharara praised the efforts of the FBI in this investigation. He added that the investigation is continuing. He also thanked the Manhattan District Attorney’s Office for its participation and support in this ongoing investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jilan Kamal is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to 10 Years in Prison for Transporting 15-Year-Old Girl from California to Las Vegas to Work as ProstituteRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who was arrested in 2014 as part of a joint law enforcement effort to capture child predators in southern Nevada, was sentenced today to 10 years in prison and 25 years of supervised release for recruiting and enticing a 15-year-old girl to travel across state lines to work as a prostitute in Las Vegas, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Deandre Maurice Parker, 27, who was captured as part of “Operation Protect the Powerless,” was sentenced by Chief U.S. District Judge Gloria M. Navarro. Parker pleaded guilty in June to one count of sex trafficking of a minor.
“Defendant sexually exploited and victimized a 15-year-old girl by transporting her to Las Vegas so that she could act as a prostitute,” said U.S. Attorney Bogden. “Under federal law, the crime committed by the defendant is a crime of violence involving a child. We will continue to aggressively investigate and prosecute cases involving the exploitation of minors as part of our implementation of the Project Safe Childhood initiative in Nevada.”
According to the court records, the 15-year-old female victim initially met Parker in 2013 in San Bernardino, Calif. For several months, Parker stayed in touch with the victim through social media websites. In June 2014, the victim ran away from the group home where she resided and re-connected with Parker. Parker recruited her to work as a prostitute, teaming her with another prostitute who worked for him to teach the girl the ropes. In August 2014, Parker moved the victim to Los Angeles to work as a prostitute, but when that did not prove to be profitable enough, Parker returned with the victim to San Bernardino and then to Las Vegas in September 2014 for prostitution. Parker used the website Backpage.com to advertise the victim’s services as a prostitute. The victim was arrested by Las Vegas Metropolitan Police Department detectives in October 2014, and agreed to cooperate with authorities.
Operation Protect the Powerless was organized and led by the Project Safe Childhood (PSC) Task Force in southern Nevada, and targeted child traffickers, persons who were coercing and enticing minors for sex, child pornographers, child molesters and child rapists. Members of the PSC Task Force include the FBI, Homeland Security Investigations, the Las Vegas Metropolitan Police Department, Henderson Police Department, Clark County D.A.’s Office and the U.S. Marshals Service. Operation Protect the Powerless occurred from June 1 to Dec. 31, 2014, and resulted in the prosecution and conviction of 219 persons, the execution of 100 search warrants, and the recovery of over 500,000 images and 2,700 videos of child rape and pornography. The surge also resulted in prosecutions are being handled jointly by the U.S. Attorney’s Office and Clark County District Attorney’s Office, and resulted in distinct charges in federal and state court.
The case was prosecuted by Special Assistant United States Attorney Allison L. Herr of the Nevada Attorney General’s Office.
PSC is a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about PSC, please visit www.usdoj.gov/psc.
Lynn Tax Preparer Pleads Guilty to Federal Tax FraudRead the Press Release
BOSTON – A Lynn tax preparer pleaded guilty in U.S. District Court in Boston yesterday to filing fraudulent personal federal tax returns and attempting to obstruct the Internal Revenue Service (IRS).
Arismendy Ramos, a/k/a Arismendi Ramos, a/k/a Aris Almonte, 42, pleaded guilty to an Information charging him with four counts of filing false tax returns and two counts of obstructing the IRS. U.S. District Court Judge Denise J. Casper scheduled sentencing for Feb. 3, 2016.
Ramos owned and operated Almonte Tax, a tax preparation service in Lynn, and personally prepared tax returns for numerous clients. From 2008 through 2013, Ramos allegedly filed false forms with the IRS claiming that he paid clients to work for him when in fact they had never been employed or paid by him. Ramos then claimed the bogus wages as business expenses on his own tax returns, thereby reducing his personal tax liabilities. Furthermore, Ramos instructed two clients that they should lie if they were asked about the false wages.
The charging statutes provide a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit.
Lewisburg man pleads guilty to Federal drug chargeRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that a Lewisburg man pled guilty to a federal drug charge in federal court in Beckley. Miles Gregory, 41, pled guilty to possession with intent to distribute oxycodone and hydrocodone, admitting that on July 2, 2015, he possessed about 25 oxycodone pills and 279 hydrocodone pills in a car he was driving in Lewisburg, and that he intended to distribute the pills. Law enforcement authorities seized the pills during a search of Gregory’s vehicle. He faces up to 20 years in prison and a one million dollar fine when he is sentenced on January 28, 2016.
The case was investigated by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier Valley Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the sale and use of heroin and illicit prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down drug trafficking, eliminating open air drug markets, and curtailing the spread of heroin and other opiate painkillers in communities across the Southern District. Assistant United States Attorney John File is handling the prosecution.
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Laguna Pueblo Woman Sentenced for Federal Misdemeanor Assault ConvictionRead the Press Release
ALBUQUERQUE – Allie P. Sarracino, 26, an enrolled member of the Laguna Pueblo who resides in Casa Blanca, N.M., was sentenced this afternoon in Santa Fe, N.M., to one year in prison followed by one year of supervised release for her misdemeanor assault conviction.
Sarracino was arrested on Dec. 8, 2014, on a criminal complaint charging her with assaulting an intimate partner by strangulation. According to the complaint, on Dec. 4, 2014, the Pueblo of Laguna Tribal Police Department responded to a report of assault on Laguna Pueblo in Cibola County, N.M. The complaint stated that Sarracino assaulted the victim, a Laguna woman, by striking her in the face and strangling her. Sarracino was subsequently indicted on Jan. 8, 2015, and charged with assaulting an intimate partner by strangulation.
On June 15, 2015, Sarracino entered a guilty plea to a misdemeanor information and admitted assaulting the victim by using her hands to strike the victim’s face. Sarracino also admitted holding the victim down by pressing on her shoulders and neck area. As a result of the assault, the victim suffered bruises, contusions and other wounds on her face and head.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Linda Mott prosecuted the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Justice Department Resolves ADA Employment Discrimination Case Against Riverside County, CaliforniaRead the Press Release
Today the Justice Department has reached a settlement agreement with Riverside County, California, resolving claims alleging that the county violated the Americans with Disabilities Act (ADA). The complaint, filed on Sept. 28, 2015, alleges that the county discriminated in its employment practices by failing to hire a probation officer applicant because he has epilepsy. The job applicant was qualified for and could perform the job duties associated with the position, but the county withdrew his offer of employment solely because of his controlled epilepsy.
“Refusal to employ qualified individuals with disabilities, including epilepsy, because of their disability cannot be tolerated by workers in our country and will not be tolerated by the Department of Justice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.
“All qualified individuals, including those with disabilities, are entitled to equal employment opportunities,” said U.S. Attorney Eileen M. Decker of the Central District of California. “This settlement demonstrates the Department of Justice’s ongoing commitment to eliminating all forms of discrimination.”
Under the consent decree, which must be approved by the court, the county will pay the applicant $50,000, offer him the position as a probation officer, provide training on the ADA and file reports on its compliance with the decree and ADA with the Justice Department. The county, which cooperated with the department in this matter, has also taken steps to ensure that its employment processes will be free of disability based discrimination.
Title I of the ADA prohibits employers, such as Riverside County, from discriminating against a qualified individual on the basis of disability in regard to job application procedures, the hiring, advancement or discharge of employees, employee compensation, job training and other terms, conditions and privileges of employment. An employer may also not deny employment opportunities to a job applicant or employee who is otherwise qualified if the denial is based on the need to make reasonable accommodations for the applicant or employee. This matter was based on a referral from the Los Angeles District office of the Equal Employment Opportunity Commission who completed the initial investigation of the facts.
Those interested in finding out more about federal disability rights statutes can call the Justice Department’s toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD), or access the ADA website at www.ada.gov.
Justice Department Announces Schaffhauser Kantonalbank Reaches Resolution Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Schaffhauser Kantonalbank (SHKB) has reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, SHKB agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
SHKB is a regional Swiss bank that was founded in 1883 and operates out of its headquarters in Schaffhausen, Switzerland. All seven of SHKB’s locations are within the Canton of Schaffhausen, and all branches are within a radius of 10 miles of its headquarters. As a cantonal bank, SHKB is obliged to service primarily the residents of the Canton of Schaffhausen and the surrounding areas.
Through its managers, employees and others, SHKB knew or had reason to know that some U.S. taxpayers who had opened and maintained accounts at SHKB were not complying with their U.S. income tax and reporting obligations. SHKB offered a variety of traditional Swiss banking services that it knew could assist, and that did in fact assist, U.S. clients in the concealment of assets and income from the Internal Revenue Service (IRS). One such service was hold mail, through which SHKB would hold all mail correspondence for a particular client at SHKB. It also offered code name or numbered account services, where SHKB would allow the accountholder to replace his or her identity with a code name or number on bank statements and other documentation sent to the client. These services helped U.S. clients to eliminate the paper trail associated with the undeclared assets and income they held at SHKB in Switzerland. By accepting and maintaining such accounts, SHKB assisted some U.S. taxpayers in evading their U.S. tax obligations.
SHKB opened and maintained accounts for U.S. taxpayers who had left other banks being investigated by the department without ensuring that each such account was compliant with U.S. tax law from the account’s inception at SHKB. SHKB also arranged for the issuance of credit, debit or travel cards to the beneficial owners of some U.S.-related accounts, and offered travel cash cards, on which a client could load up to 10,000 Swiss francs, U.S. dollars or euros from his or her SHKB bank account by instructing SHKB by telephone, mail or e-mail. The client could then use the card for purchases or remit unused balances back to the SHKB account. Use of these cards by U.S. persons facilitated their access to or use of undeclared funds on deposit at SHKB.
SHKB issued checks, including series of checks, in amounts of less than $10,000 that were drawn on accounts of U.S. taxpayers, even though SHKB knew, or had reason to know, that the withdrawals were made to avoid triggering scrutiny under the U.S. currency transaction reporting requirements. Furthermore, since Aug. 1, 2008, SHKB processed significant cash withdrawals for at least 15 U.S. taxpayers at or around the time the clients’ accounts were closed, even though SHKB knew, or had reason to know, the accounts contained undeclared assets. For example, in November 2009, SHKB processed a U.S. taxpayer’s cash withdrawal of more than 400,000 euros when SHKB closed the account.
In the period since Aug. 1, 2008, SHKB held one structured account that was a U.S.-related account with maximum assets under management of approximately $11.5 million. The nominal accountholder was a foundation in Liechtenstein, but the true owner was a U.S. person, which aided and abetted the client’s ability to conceal an undeclared account from the IRS.
In 2001, SHKB entered into a Qualified Intermediary Agreement (QI Agreement) with the IRS. The QI Agreement was designed to help ensure that, with respect to U.S. securities held in an account at SHKB, non-U.S. persons were subject to the proper U.S. withholding tax rates and that U.S. persons holding U.S. securities were properly paying U.S. tax. In general, if an accountholder wanted to trade in U.S. securities and avoid mandatory U.S. tax withholding, the QI Agreement required SHKB to obtain the consent of the accountholder to disclose the client’s identity to the IRS. The QI Agreement required SHKB to obtain IRS Forms W-9 and to undertake IRS Form 1099 reporting for new and existing U.S. clients engaged in U.S. securities transactions.
In 2002, SHKB forbade the purchasing or holding of U.S. securities for U.S. persons, and it also required all U.S.-domiciled persons to provide a hold-mail instruction to SHKB. As a practical matter, this policy allowed SHKB to avoid having to disclose the identities of U.S. clients to the IRS under its QI Agreement. SHKB chose to continue to service U.S. clients without disclosing their identities to the IRS and without considering the impact of U.S. criminal law on that decision. Until May 2012, SHKB did not require all of its U.S. clients to provide a signed IRS Form W-9 and to confirm whether their accounts were disclosed to the IRS.
Through the Swiss Bank Program, SHKB has cooperated with the department and provided information to the U.S. government about its cross-border business with U.S.-related accounts. Following SHKB’s efforts, approximately 24 of its U.S.-related accounts have thus far entered into an IRS Voluntary Disclosure Program or Initiative. Moreover, SHKB has obtained waivers of Swiss bank secrecy for approximately 87 percent of its U.S.-related accounts and has provided customer names for those accounts to the U.S. government.
Since Aug. 1, 2008, SHKB held a total of 182 U.S.-related accounts with approximately $84.5 million in assets under management. SHKB will pay a penalty of $1.613 million.
While U.S. accountholders at SHKB who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at SHKB must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS, and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Ciraolo also thanked Kimberle E. Dodd, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
SHKB Executed NPA and SOF (897.82 KB)
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Johnstown Man Sentenced to 5 Years in Prison for Conspiring to Distribute HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to sixty months in prison and four years’ supervised release on his conviction of conspiracy to distribute heroin, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Terrance Sitton, 42.
According to information presented to the court, from Jan. 22, 2015, to April 17, 2015, Sitton conspired to distribute and possess with the intent to distribute 100 grams or more of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania Attorney General's Office, the Cambria County Drug Task Force, the Altoona Police Department, and the Cambria County District Attorney's Office, for the investigation leading to the successful prosecution of Sitton.
Jacksonville Fugitive Pleads Guilty to Failing to Appear for SentencingRead the Press Release
Jacksonville, Florida – U.S. Attorney A. Lee Bentley, III announces that Charles Cornelius Smith (35, Jacksonville) has pleaded guilty to failing to appear in federal court for his sentencing hearing. He faces a maximum penalty of 10 years in federal prison that must run consecutively to the sentence that will be imposed in a second federal case involving the passing of counterfeit Federal Reserve notes. No sentencing date has been set for either case.
According to court documents, in December 2014, Smith was indicted on three counts of uttering counterfeit Federal Reserve notes. He was arrested on January 20, 2015, and was released on bail. Smith pleaded guilty on February 6, 2015, and a sentencing hearing was set for May 27, 2015. On the day of sentencing, however, Smith failed to appear. Approximately four months later, Smith was arrested by deputies from the U.S. Marshals Service in Jacksonville.
This case was investigated by the United States Secret Service, Jacksonville Field Office and the U.S. Marshals Service. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Indy’s high five line to continueRead the Press Release
Earlier this week, over 70 prominent men from the Indianapolis community attended a rally at the Tindley Preparatory Academy to show their support for the young men attending school there. A human tunnel was formed by men from the community as the Tindley scholars ran through getting “high fived” starting their school day.
The program was a huge success, (see Indy Star article indy.st/1Rrrc4e) and U S Attorney Josh Minkler would like to extend an invitation to all men in this community to come forward and show their support for the youth in our community.
“I was uplifted by the show of support by so many caring men at Tindley Prep earlier this week,” said Minkler. “The rally gave me renewed confidence, that together, we can make a difference in keeping our children safe and reducing violent crime in our neighborhoods. I challenge every person in Indianapolis to come out to future events and do your part to support our youth.”
Future events include:
Friday October 30, 2015, 7:30 am, John Marshall, 10101 E. 38th Street
Monday, November 2, 2015, 7:30 am, Avondale Meadows, 3980 Meadows Drive
Friday, November 13, 8:30 am, Arlington Woods Elementary, 5801 E 30th Street
Monday, November 16, 2015, 8:15 am, Geo H. Fisher Elementary, School #93,
7151 E 35th Street.
Friday, December 4, 7:00 am, Westlake Elementary, 271 Sigsbee Street
Friday December 11, 2015, 8:00 am, Vision Academy @ Riverside,
1751 Riverside Drive
Other dates will be announced in the near future.
Hudson Valley ‘Breaking Bad’ Dealer Sentenced in White Plains Federal Court to 35 Years in Prison for Distributing Heroin and Fentanyl That Caused the Deaths of Three PeopleRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that DENNIS SICA was sentenced today in White Plains federal court to 35 years in prison for participating in a conspiracy to distribute heroin and fentanyl, the use of which resulted in the deaths of three individuals: Anthony Delello, Laura Brown, and Thomas Miller. SICA was sentenced by United States District Judge Cathy Seibel.
U.S. Attorney Preet Bharara stated: “Sica chose again and again, to sell lethal heroin laced with fentanyl for profit, even after realizing that his ‘Breaking Bad’ branded drugs were killing people. No sentence is going to bring back the three young people whose lives were cut short, but this prosecution hopefully brings some closure to their loved ones and causes others who peddle the poison of fentanyl-laced heroin not to make the same terrible choices Sica made.”
According to the allegations contained in the Indictment, the underlying criminal Complaint unsealed on June 19, 2014, and statements made during court proceedings:
From at least late 2013 to February 2014, SICA and others worked together in Dutchess County to sell a particularly potent form of heroin, bags of which were stamped with the brand name ‘Breaking Bad.’ At least some of the heroin distributed by SICA was laced with fentanyl, a synthetic opioid that is significantly stronger than street heroin.
On the night of December 28, 2013, SICA sold ‘Breaking Bad’ heroin to Anthony Delello, a 20-year-old resident of Beekman, New York. Delello snorted some of SICA’s heroin and was found dead by his girlfriend the following day. The Dutchess County Medical Examiner’s report concluded that he died from “acute heroin intoxication.”
Delello’s death did not stop SICA from selling ‘Breaking Bad’ heroin. Four days after Delello was found dead, SICA exchanged a series of text messages with a co-conspirator in which SICA urged the co-conspirator to delete the text message history in the phone they used to sell heroin and, if asked, to deny knowing anything about Delello or the manner of his death.
Slightly more than a month after Delello’s death, two more individuals died after overdosing on ‘Breaking Bad’ heroin. On February 1, 2014, Thomas Miller, 31, was found dead by his mother at his home in Pawling, New York. A hypodermic needle, as well as several glassine bags stamped with the words ‘Breaking Bad,’ were found near his body. Some of the glassine bags were full, others were empty. A chemical analysis of the contents of the full glassine bags showed that they contained a mixture of quinine, fentanyl, and heroin. The medical examiner’s report indicates that Miller died of “acute intoxication by the combined effects of heroin and fentanyl.”
The same day that Miller was found dead, Laura Brown, 35, was found dead of an apparent heroin overdose in New Milford, Connecticut. Brown was found with needles and glassine bags near her body. Several of the glassine bags were stamped with the words ‘Breaking Bad.’ The autopsy performed on Brown’s body showed that she died of “acute heroin and fentanyl intoxication.” According to Brown’s brother, he and Brown together bought ‘Breaking Bad’ heroin from SICA two days before Brown was found dead.
On February 2, 2014, SICA was arrested by state authorities in East Fishkill, New York, after a car in which he was riding was stopped by law enforcement. During a subsequent search of the car, law enforcement officers recovered several glassine bags stamped with a ‘Breaking Bad’ stamp identical to the one that appears on the envelopes recovered from Thomas Miller’s bedroom.
* * *
SICA, 37, of Hopewell Junction, New York, pled guilty to one count of conspiracy to distribute heroin and fentanyl resulting in death. In addition to the sentence of 35 years in prison, SICA was also sentenced to four years supervised release.
Mr. Bharara praised the outstanding investigative work of the Drug Enforcement Administration’s (“DEA”) Tactical Diversion Squad and the Dutchess County Drug Task Force. The DEA’s Tactical Diversion Squad is comprised of agents and officers from the DEA, the New York City Police Department, the New York State Police, Town of Orangetown Police Department, and the Westchester County Police Department. The Dutchess County Drug Task Force is composed of the City of Poughkeepsie Police Department, the Town of Poughkeepsie Police Department, the East Fishkill Police Department, and the Dutchess County Sheriff’s Office. Mr. Bharara also thanked the New York State Police Forensics Unit, the Dutchess County District Attorney’s Office, the Dutchess County Sheriff’s Office, and the police department for the City of New Milford, Connecticut, for their assistance in the investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Scott Hartman and Benjamin Allee are in charge of the prosecution.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CARLOS ALBERTO RIVERA-MELENDEZ, age 39, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Indictment, on or about August 10, 2015, RIVERA-MELENDEZ was found in the United States after having been officially deported and removed on or about January 16, 2009.
RIVERA-MELENDEZ faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Lance M. Africk set sentencing for December 10, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Grand Jury Returns Indictment Charging Layton Man with Impersonating Federal Officer to Get Vip TicketsRead the Press Release
SALT LAKE CITY – A federal grand jury returned a two-count indictment Wednesday afternoon charging Jonathon M. Wall, age 29, of Layton with impersonation of a federal officer in connection with an attempt to get VIP tickets to the Salt Lake Comic Con.
The indictment alleges Wall pretended to be a Special Agent of the Air Force Office of Special Investigations (AFOSI) and, in that pretended character, demanded VIP tickets to the event under the ruse that he was entering the VIP area to apprehend a wanted fugitive. Wall’s alleged conduct attracted the attention of a retired Salt Lake City police officer working security at the event. The security officer questioned Wall about AFOSI and what fugitive he was looking for. The security officer notified AFOSI special agents, who came to question Wall.
The indictment also alleges one count of making a false statement to a federal agent.
The maximum potential penalty for impersonating a federal officer is three years in prison. The penalty for making a false statement to a federal agent is five years in prison. Each count also includes a potential fine of $250,000. A summons will be issued to Wall to appear for an initial appearance on the charge.
Indictments are not findings of guilt. Individuals charged in indictments are innocent unless or until proven guilty in court.
Galveston Fugitive Sought in Cocaine ConspiracyRead the Press Release
HOUSTON - A total of nine people are in custody following the return of a one-count federal indictment alleging a conspiracy to possess with the intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson.
Authorities are still seeking Patrick Fredrick, 44, of Galveston, who is considered a fugitive. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
Those taken into custody during an enforcement action in the Dickinson and surrounding areas last week include Arturo Cruz, 33, Seferino Nunez, 35, Matthew Olguin 25, Reid Wilder, 31, Sidney Hobbs, 44, and Carlos Cantu, 33, all of Dickinson. They all made their initial appearances before U.S. Magistrate Judge John Froeschner and were temporarily ordered into custody pending detention hearings held this week. With the exception of Olguin, who was permitted release upon posting bond, all were ordered into custody pending further criminal proceedings.
Three others - Guadalupe Martinez Ochoa, 27, of Channelview, Dionisio Gonzales, 53, of Bacliff, and Amado Cruz III, 25, of Dickinson, are also charged but already in custody. Ochoa was being held on related charges while Gonzales and Cruz were in custody on unrelated matters. All have also been transferred and appeared in federal court on the new charges. They will remain in custody.
The indictment alleges that from early 2013 all of the defendants unlawfully conspired to possess with the intent to distribute more than five kilograms of cocaine. At the detention hearings, the government argued that this group is suspected of distributing multiple kilograms of cocaine on a monthly basis. The court heard about their alleged means of operation and how they were identified. In one instance, the government contended that authorities had identified a load of cocaine suspected of being delivered to Galveston. The vehicle, driven by Ochoa, was stopped and searched, at which time authorities discovered five kilograms of cocaine hidden in the vehicle, according to the government’s allegations.
If convicted, each faces a minimum of 10 years and up to life in federal prison and a possible $10 million fine.
The charges are the result of a two-year investigation conducted by the FBI, Drug Enforcement Administration and Texas Department of Public Safety with the assistance of the police departments in Dickinson and Galveston and the Galveston County Sheriff’s Office. Assistant U.S. Attorney John Jocher is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Franklinton Man Pleads Guilty to Structuring over $100,000 in Financial Transactions in One Year to Avoid Federal Reporting RequirementsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JERRY COX, age 72, of Franklinton, pled guilty today to a one-count Bill of Information charging him with structuring financial transactions to avoid federal reporting requirements.
According to court documents, COX had control and access to several financial accounts, including one at Resource Bank and one at Citizen Savings Bank. Over the course of two occasions—one between September 20, 2011, and October 11, 20111, and another between July 24, 2012, and August 4, 2012—COX engaged in a series of deposits and withdrawals designed to evade Currency Transaction Reporting requirements under federal law. COX was aware of the reporting requirements. Specifically, during the first occasion, COX engaged in seven financial transactions, each under $10,000, in which he withdrew a total of $62,150. During the second time period, COX engaged in seven additional transactions, each under $10,000, in which he withdrew a total of $39,900. In total, COX engaged in structured withdrawals in the amount of $102,050 between September 20, 2011 and August 4, 2012, in amounts and in a pattern designed to avoid the Currency Transaction Reporting requirements.
COX faces a maximum term of imprisonment of not more than 10 years in prison, followed by up to 3 years of supervised release, and a $250,000 fine. U.S. District Judge Nannette Jolivette Brown set sentencing for January 28, 2016.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Former Union County, New Jersey, Vendor Sentenced to 31 Months in Prison for Paying Bribes and Defrauding County of More Than $120,000Read the Press Release
NEWARK, N.J. – The owner of a company that sold maintenance and cleaning supplies was sentenced today to 31 months in prison for paying bribes to a Union County official and to defrauding the county of more than $120,000 in connection with the purchases, U.S. Attorney Paul J. Fishman announced.
Richard Greer, 56, of Marlboro, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging one count of conspiracy to commit mail fraud. Judge Walls imposed the sentence today in Newark federal court.
According to documents in this case and statements made in court:
From 2006 to 2011, Greer owned and operated Positive Attitude LLC, a commercial vendor that sold, among other products, maintenance and cleaning supplies to Union County. Aniello Palmieri, 59, of Toms River, New Jersey, was the director of the Division of Facilities Management for Union County and oversaw the purchasing of building materials, tools, hardware, janitorial supplies and other supplies used by the various bureaus of the division.
Greer made cash bribe payments to Palmieri of $500 per month in exchange for ensuring continued Union County business for Positive Attitude. Greer generated fictitious invoices to Union County for many industrial cleaning products to cover the monies paid to Palmieri, often including a profit for himself above the kickback he paid to Palmieri. Positive Attitude received $120,000 to $200,000 in fraudulent proceeds from the fictitious invoices. Greer used the mails to facilitate this scheme by having Union County send the checks in payment for these purchases to his company in Marlboro.
In addition to the prison term, Judge Walls sentenced Greer to three years of supervised release and ordered restitution of $185,000.
On Oct. 2, 2013, Palmieri and Frank Donald Vicendes III, 50, of Berkeley Heights, a Union County vendor, admitted to engaging in a similar bribery scheme and to defrauding Union County of more than $120,000 in connection with sale of supplies to Union County. Palmieri and Vicendes entered their guilty pleas to mail fraud before Judge Walls in Newark federal court. Palmieri was sentenced Oct. 6, 2015, to 70 months in prison. Vicendes is scheduled to be sentenced Oct. 21, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and the N.J. State Police, under the direction of Col. Joseph R. Fuentes, superintendent of the state police, for the investigation leading to today’s sentencing. He also thanked the N.J. Attorney General’s Office under the direction of Acting Attorney General John J. Hoffman and Elie Honig, director of the N.J. Division of Criminal Justice, for their work in this investigation.
The government is represented by Assistant U.S. Attorney Mark McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Marc A. Agnifilo Esq., New York
Former Trenton Man Sentenced for Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Trenton, Mo., man was sentenced in federal court today for attempting to produce child pornography after secretly filming several victims in the shower.
Edward Allen Stieber, 49, of Brookfield, Mo., formerly of Trenton, was sentenced by U.S. District Judge Beth Phillips to 25 years in federal prison without parole.
On April 24, 2015, Stieber pleaded guilty to two counts of attempting to use a minor, identified as “Jane Doe,” to produce child pornography on separate occasions between January 2009 and January 2011.
According to court documents, agents with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in Cheyenne, Wyo., initiated an investigation in September 2012 into the activities of a subject utilizing a peer-to-peer file-sharing network to advertise images of suspected child pornography. Agents identified Stieber with the username “kool_uncle.” Steiber was employed as an over-the-road truck driver but at the time maintained a residence in Trenton.
Steiber was scheduled to make a delivery in Harmony, Penn., on Dec. 5, 2012. On that day, federal agents executed a search warrant on Steiber’s semi-truck and seized various electronic media containing images and videos of child pornography. Steiber was arrested and later indicted by a federal grand jury in the Western District of Pennsylvania for possessing child pornography.
Investigators examined Steiber’s computers and computer media and discovered a number of homemade videos of minor females that appeared to have been produced in his home. Agents were able to identify the minor victim, as well as an adult victim and three other minor female victims whom Steiber secretly filmed while they were using the shower in his residence.
According to court documents, Steiber also sexually abused a minor victim who was vulnerable based on issues she was facing as a teenager, and took advantage of his position of trust to exploit their relationship.
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
This case was prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Wyoming Internet Crimes Against Children Task Force and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources." For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former State Parole Officer Charged with BriberyRead the Press Release
Jackson, Miss - Andra Smith, 44, of Canton, has been charged by Criminal Information with bribery, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway. Smith is a former Probation and Parole Officer with the Mississippi Department of Corrections working out of Madison County.
Smith is charged with soliciting bribes from a parolee he was supervising from March, 2015 through June, 2015. Smith took the money in exchange for allowing the parolee to leave Mississippi to find employment.
"Whenever public officials break the law, particularly those persons sworn to serve and protect the public, we must do everything we can to hold them accountable," said U.S. Attorney Gregory K. Davis. "This office will aggressively pursue allegations of corruption and vigorously prosecute such cases."
"These cases are particularly troubling because each one we investigate erodes the very public trust we are all sworn to uphold", said Donald Alway, Special Agent in Charge of the FBI in Mississippi. "Using the authority of the badge for personal gain betrays the vast majority of us who protect and serve with honor."
Mississippi Department of Corrections Commissioner Marshall Fisher stated: "We referred this case to the FBI, based on allegations. We have zero tolerance for corruption in any form by anyone within the Mississippi Department of Corrections. Such conduct is a disservice to the hardworking employees of the agency and the taxpayers of the state of Mississippi. This should serve as a clear message to everyone that MDOC is committed to performing our mission, and we value the services and support of our honest employees."
Smith is scheduled to make his initial appearance before United States Magistrate Judge F. Keith Ball on October 16
th at 1:00 p.m. He will then appear for a hearing before Senior United States District Judge Tom S. Lee at 1:30 p.m. on the same day.
The maximum penalty for bribery is 10 years in federal prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Criminal Investigation Division of the Mississippi Department of Corrections. The case is being prosecuted by Assistant United States Attorneys Scott Gilbert and Mary Helen Wall.
Former Letter Carrier Admits to Receiving Bogus Travel Expenses for Medical CareRead the Press Release
Greenbelt, Maryland – LaRosa Bolton, age 54, of Laurel, Maryland pleaded guilty today to theft of government property in connection with a scheme to fraudulently receive reimbursement for travel expenses for medical care related to injuries sustained on the job.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General; and Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
According to her plea agreement, Bolton was a letter carrier for the U.S. Postal Service at the Laurel, Maryland post office. Between 1993 and 1998, Bolton sustained three separate injuries at work, all of which qualified her for worker’s compensation. She began receiving compensation benefits in 2001. Bolton was also eligible to receive reimbursement for travel expenses to and from medical appointments related to her injuries.
From January 2008 to July 2014, Bolton submitted vouchers to the Office of Worker’s Compensation Programs (OWCP) for the reimbursement of travel expenses for approximately 1,170 trips for medical care. Approximately 89 of those trips were actually for medical care received. However, Bolton admitted that she did not receive medical care for the remaining 1,081 trips.
To obtain reimbursement from OWCP, Bolton periodically prepared and mailed numerous forms falsely certifying that she had driven round trip from her home to medical facilities for treatment. As a result, Bolton was paid between $70,000 and $120,000 for the reimbursement of travel expenses to which she was not entitled.
Bolton faces a maximum sentence of 10 years in prison. U.S. District Judge Peter J. Messitte has scheduled sentencing for January 20, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Service -OIG and U.S. Department of Labor - OIG, Office of Labor Racketeering and Fraud Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis Raphael Weisman, who is prosecuting the case.
Former Employee of Hearing Aid Company Convicted of Retaliating Against WitnessRead the Press Release
Montgomery, Alabama – A federal jury in Montgomery convicted Jeffrey Alan Nursey (64) on Wednesday, October 7, 2015, for retaliating against a witness in an earlier health care fraud case brought against him, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
According to evidence presented at trial, Nursey sent letters to the witness in the underlying health care fraud case and posted flyers around the witness’s workplace. Those flyers labeled the witness as a “sexual child molester” and warned others to avoid him. A jury found that these letters and flyers were meant to retaliate against the witness for cooperating with the United States in the previous case against him. The government’s investigation in the case included forensic evidence that found Nursey’s fingerprint on one of the letters that was mailed to the witness’s church.
“Trials and witnesses are the cornerstone of our justice system,” stated U.S. Attorney George L. Beck, Jr. “This case emphasizes my office’s commitment to make certain that when a witness cooperates with law enforcement authorities, he/she will not be tampered with, retaliated against, or bullied for doing the right thing.”
Nursey faces a maximum sentence of 10 years in prison. In addition, there is a pending petition to revoke Nursey’s probation on the original health care fraud matter.
United States Attorney George L. Beck, Jr., thanked the Federal Bureau of Investigation and the Montgomery County Sheriff’s Office for their assistance in the investigation. Mr. Beck commended Assistant United States Attorneys Bob Anderson and DeeDee Calhoon, who prosecuted the case.
Former Chief Executive of Chicago Public Schools Indicted for Accepting Bribes and Kickbacks to Steer No-Bid ContractsRead the Press Release
CHICAGO — A federal indictment returned today charges BARBARA BYRD-BENNETT with using her position atop the Chicago Public Schools to award lucrative no-bid contracts to her former employer in exchange for bribes and kickbacks.
The 23-count indictment alleges that Byrd-Bennett steered no-bid contracts worth more than $23 million to THE SUPES ACADEMY LLC, and SYNESI ASSOCIATES LLC, in exchange for an expectation of hundreds of thousands of dollars in bribes and kickbacks. The companies agreed to conceal the kickback money by funneling it into accounts set up in the names of two of Byrd-Bennett’s relatives, according to the indictment. A later agreement called for the funds to be paid to Byrd-Bennett in the form of a “signing bonus” after her employment with CPS ended and the companies re-hired her as a consultant, according to the indictment.
The companies, which specialize in training principals and school administrators, provided Byrd-Bennett with numerous other benefits, including meals, an airplane ticket, and seats at basketball and baseball games, the indictment states. Byrd-Bennett also expected to receive reimbursement from the companies for costs associated with a holiday party she hosted for CPS personnel, according to the charges.
The Wilmette-based SUPES and the Evanston-based Synesi are also charged in the indictment, along with their respective former owners, GARY SOLOMON and THOMAS VRANAS. Byrd-Bennett had worked as a consultant for SUPES and Synesi before moving to CPS in May 2012. She was appointed chief executive officer at CPS on Oct. 12, 2012.
The indictment charges Byrd-Bennett, 66, of Solon, Ohio, with 15 counts of mail fraud and five counts of wire fraud. Solomon, 47, of Wilmette, is charged with 15 counts of mail fraud, five counts of wire fraud, two counts of bribery of a government official, and one count of conspiracy to defraud the United States. Vranas, 34, of Glenview, is charged with 15 counts of mail fraud, four counts of wire fraud, two counts of bribery of a government official, and one count of conspiracy to defraud the United States. SUPES and Synesi are charged as corporate defendants with 15 counts of mail fraud and five counts of wire fraud apiece.
The indictment seeks forfeiture from defendants Solomon, Vranas, SUPES and Synesi of all money and property traceable to the violations, estimated at approximately $2 million.
An arraignment date in U.S. District Court in Chicago has not yet been set.
“Graft and corruption in our city’s public school system tears at the fabric of a vital resource for the children of Chicago,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “School officials and city vendors who abuse the public trust will be held accountable.”
Mr. Fardon announced the indictment along with John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Nicholas J. Schuler, Inspector General for the Chicago Public Schools.
“The American people expect honest services from their government leaders, particularly those responsible for leading our teachers and caring for our children,” said Special Agent Brown. “The FBI, in conjunction with our local, state and federal law enforcement partners, remains steadfast in its pursuit of those willing to trade the education of our children for their own prosperity.”
“The public education system is harmed when a high-level insider chooses to line their pockets with public funds," CPS Inspector General Schuler said. "My office is committed to rooting out corruption at any level through joint investigations such as this one.”
The contracts referenced in the indictment were awarded by the Chicago Board of Education, which governs CPS, as part of a CBOE training program called the Chicago Executive Leadership Academy (CELA). One such contract – worth $2.09 million for leadership training of school administrators – was awarded to SUPES within two weeks of Byrd-Bennett’s appointment as CEO, and then extended with an additional $225,000 allocation in 2013. A larger no-bid contract – worth $20.5 million – was awarded to SUPES on June 26, 2013.
The indictment alleges that Byrd-Bennett used her position as CEO to lobby CBOE officials on behalf of SUPES and Synesi, and to actively seek funds from the CPS budget to expand the CELA program for the companies’ benefit. Byrd-Bennett directed CPS employees to obtain the necessary approvals to eliminate competitive bidding from the procurement process, and to ensure that the contracts were awarded to SUPES, according to the indictment.
All the while, Byrd-Bennett falsely represented to CBOE officials that she received no financial compensation from the companies, the indictment contends. In reality, Byrd-Bennett maintained an interest in SUPES and Synesi through a secret consulting agreement, which promised to pay her a percentage of the gross proceeds from the contracts she helped to procure, according to the indictment.
The indictment cites an email between Solomon and Vranas on or about Dec. 6, 2012, which contained a prior email discussion between Byrd-Bennett, Solomon and Vranas. In that email, Solomon informed Byrd-Bennett, in part: “It is our assumption that the distribution will serve as a signing bonus upon your return to SUPES/Synesi. If you only join for the day, you will be the highest paid person on the planet for that day.”
In the late summer or early fall of 2013, according to the indictment, Solomon informed Byrd-Bennett that the CBOE Inspector General wanted to review Solomon’s and Vranas’s emails. Solomon said Vranas planned to use a computer program to delete the emails, and he told Byrd-Bennett to delete her emails as well, the indictment states.
Each count of mail and wire fraud is punishable by a maximum sentence of 20 years in prison, mandatory restitution, and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. Each count of bribery of a government official carries a maximum sentence of ten years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. The charge of conspiracy to defraud the United States is punishable by a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.
If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant United States Attorneys Megan Cunniff Church and Lindsay Jenkins.
Indictment (175.45 KB)
Former CBP Officer Sentenced for Allowing Drugs Through Port of EntryRead the Press Release
BROWNSVILLE, Texas – A former Customs and Border Protection (CBP) officer from Brownsville has been sentenced for conspiracy to possess with intent to distribute more than 1000 kilograms of marijuana, announced U.S. Attorney Kenneth Magidson. Jose Luis Zavala, 38, pleaded guilty March 3, 2015.
Today, U.S. District Judge Andrew Hanen ordered he serve 78 months in federal prison to be immediately followed by three years of supervised release. He was further ordered to pay a $7,500 fine.
Zavala had been employed for eight years as a CBP officer assigned to the Brownsville field of operations.
At the time of his guilty plea, Zavala admitted he allowed vehicles loaded with marijuana to enter the United States from Mexico in exchange for money. On Nov. 19, 2014, Zavala was working the Gateway Port of Entry when a van attempted to enter the United States through the inspection lane manned by Zavala. The driver presented a U.S. Passport and the van was randomly selected for an intensive inspection, a decision not made or controlled by Zavala. The driver then abandoned the vehicle and fled on foot to Mexico. The van was carrying 1362 Kilograms of marijuana that was not hidden or disguised as legitimate cargo. Zavala had entered into an agreement with co-conspirators and intended to allow the vehicle and marijuana into the United States.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation by Homeland Security Investigations, Drug Enforcement Administration and Department of Homeland Security - Office of Inspector General. Assistant U.S. Attorney Bill Hagen is prosecuting the case.
Former Bank Vice President Pleads Guilty in Connection with Rothstein CaseRead the Press Release
A former Vice President of TD Bank pled guilty today for his involvement in a wire fraud conspiracy connected to the Rothstein matter.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Frank Spinosa, 54, of Ft. Lauderdale pled guilty before U. S. District Judge Beth Bloom, in Miami, to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371. At his sentencing, scheduled for December 18, 2015, at 9:00 a.m., the defendant faces a maximum statutory sentence of up to five years in prison.
In 2009, it was discovered that the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA) was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. In a written factual stipulation filed in connection with his guilty plea, Spinosa, who, at the time, was a Regional Vice President with TD Bank, admitted that he conspired with Rothstein to induce certain persons into investing money in the confidential settlements through material misstatements by defendant Spinosa. Specifically, Spinosa admitted that he and Rothstein agreed to utilize the prestige and legitimacy of TD Bank, and Spinosa’s position as Regional Vice President, to give investors in the scheme a false sense of security and induce them into investing in the confidential settlements by fraudulently creating a document that made it appear that certain investment funds were being held in a restricted account at TD Bank when, in fact, they were not.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Floyd Medical Center Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Floyd Medical Center (Floyd), a system of health care providers located in Rome, Georgia, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
“When a deaf patient or caregiver is unable to understand what is happening during a medical visit or procedure, it can be a terrifying experience and adversely affect the quality of care,” said U.S. Attorney John Horn. “Deaf or hard of hearing citizens deserve the same opportunities to participate in medical decisions as every other citizen.”
The U.S. Attorney’s Office initiated an investigation after receiving three complaints alleging that Floyd failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainants, who are deaf or hard of hearing and rely on American Sign Language as their primary means of communication, were either patients or the primary caregivers of patients at Floyd. One claimant alleged that she endured a complicated labor and delivery by C-section without any effective communication before or during this procedure. Another complainant, who was the primary caregiver for her elderly father, alleged that she was denied effective communication and therefore unable to fully participate in or understand the medical decision-making regarding his terminal illness or discharge to home hospice care.
Under the settlement agreement, Floyd agreed to ensure effective communication to patients who are deaf and hard of hearing. In the future, Floyd agreed to give primary consideration to the expressed preference for a particular auxiliary aid or service by an individual who is deaf or hard of hearing. Among other things, Floyd has agreed to provide mandatory in-service training to all its personnel and provide reports to the U.S. Attorney’s Office regarding its compliance with the settlement agreement. The training will address the needs of deaf and hard-of-hearing patients and companions. Floyd also agreed to pay $75,000 to the complainants.
The ADA prohibits discrimination against individuals with disabilities by health care professionals. Under the ADA, health care providers are required to provide effective communication to individuals who are deaf and hard of hearing. When complex, lengthy communication is involved, the ADA generally requires health care professionals to provide qualified sign language interpreters for the person who is deaf or hard of hearing.
This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, which is a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia. Information about the initiative can be found at www.ada.gov/usao-agreements.htm.
Assistant U.S. Attorneys Aileen Bell-Hughes and Emily Shingler are representing the United States in this matter.
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-ndga.
Floridian Man Sentenced to Jail for 18 Months for Possession of Crack CocaineRead the Press Release
Eric S. Miller, United States Attorney for the District of Vermont, stated that Tyrone Dixon, 35, of St. Augustine, Florida, was sentenced Tuesday in United States District Court in Rutland by U.S. District Court Judge Geoffrey W. Crawford, to 18 months in prison followed by three years of post-release supervision, for possession with intent to distribute approximately 50 grams of crack cocaine.
According to court records, in the early morning of January 5, a Customs and Border Protection Officer stationed at the Derby Line Port of Entry noticed a vehicle making an illegal U-turn in between the ports of entry for the United States and Canada. The car had traveled north towards Canada but turned back before attempting entry into Canada. Customs and Border Protection Officers worked with Special Agents from Homeland Security Investigations to inspect the vehicle and conduct interviews with driver Tyrone Dixon and passenger Emily Lasell of Vermont. From the vehicle, a Customs and Border Protection Officer recovered a hollowed-out loaf of bread concealing approximately 50 grams of crack cocaine, some of which was already packaged for distribution, re-wrapped inside a plastic bread bag, and concealed inside a bag of otherwise innocuous groceries. A Customs and Border Protections Officer also recovered five syringes that appeared to have been used and approximately twenty-five used or torn white packages consistent with the packaging commonly seen in the heroin trade. From inside the passenger’s bra, a Customs and Border Protection Officer recovered two small packages commonly known as “tickets” of heroin.
On January 15, 2015, Dixon was indicted by a federal grand jury on a one-count indictment charging him with Possession with Intent to Distribute a Controlled Substance. Dixon pleaded guilty to the sole count in the indictment on June 2, 2015, pursuant to a plea agreement.
The case was jointly investigated by Homeland Security Investigations and Customs and Border Protection. The United States Attorney commends those agencies for their work and cooperation. Dixon was represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor was Assistant U.S. Attorney Abigail Averbach.
Fitzgerald Resident Convicted of Embezzling More Than $79,000 in Social Security BenefitsRead the Press Release
Larry T. Hyman, age 59, of Fitzgerald, Georgia, was convicted, following a 3-day jury trial, of conspiracy to embezzle government monies, on October 7, 2015, in the United States District Court in Albany. Senior United States District Court Judge W. Louis Sands presided over the trial.
Codefendant Gussie Scott pleaded guilty to the same charge on June 9, 2014 and is awaiting sentencing.
Mr. Hyman and Ms. Scott were charged with conspiracy to embezzle $79,826 in Social Security benefits from a deceased person, “W.B.”. For a period of almost eight years after W.B.’s death in 2005, Mr. Hyman, who had his name added as a joint signatory to W.B.’s Bank of America account, continued to withdraw and spend W.B.’s Social Security benefits.
The evidence presented at trial showed that in mid-November 2013 a representative of the Social Security Administration sent letters and made phone calls to W.B. in an attempt to verify his status. Ms. Scott spoke by telephone to the representative from the Social Security Administration. She falsely stated that her name was “Cindy Jones” and that she was a niece of W.B. Ms. Scott further stated that W.B. was not at home, but that she would have him call the Social Security representative back later in the day. The government’s evidence at trial showed that Mr. Hyman knew of Ms. Scott’s call to the Social Security Administration and that he continued to make ATM withdrawals from W. B.’s account after the call.
U.S. Attorney Michael Moore said, “Mr. Hyman stole money intended as benefits for those who spent a lifetime investing in the Social Security program. He enriched himself at the expense of our senior citizens and children and families with severe medical needs and issues. Social security is intended to provide succor and support for the deserving and the needy, not the greedy and avaricious. My office shall continue to work hand in hand with the Social Security Administration in hand to bring to justice those like Mr. Hyman, who steal from the deserving to enrich themselves.”
“The Social Security Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public’s trust by failing to report Social Security beneficiary deaths and continuing to receive the deceased’s benefits. I’m grateful that the U.S. Attorney’s Office shares our determination to protect the integrity of the SSA’s programs for those who rely on them now and into the future,” stated Special Agent-in-Charge Margaret Moore-Jackson.
“The U.S. Secret Service takes seriously the theft of government monies and will take appropriate investigative steps when such acts are committed against the U.S. Treasury. This cooperative effort between the Social Security Office of the Inspector General, the U.S. Secret Service, and the United States Attorney’s Office tells those who may commit such acts that there is always a price to pay for defrauding the hardworking tax payers of this nation,” said Resident Agent In Charge Clint Bush.
The case was investigated by the Social Security Office of the Inspector General and the United States Secret Service. Assistant U.S. Attorney Jim Crane 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.
Federal Jury Finds Kevin Folse Guilty on Carjacking and Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict this morning finding Kevin Folse, 30, guilty on carjacking and firearms charges after a four-day trial. The verdict was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
In announcing the verdict, U.S. Attorney Martinez noted that the prosecution of Folse was part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Folse initially was charged in this case on July 6, 2015, by criminal complaint with being a felon in possession of a firearm and ammunition. At the time, Folse was prohibited from possessing firearms or ammunition because he previously had been convicted for receiving or transferring a stolen vehicle, marijuana trafficking, aggravated battery with a deadly weapon, and being a felon in possession of a firearm.
On July 14, 2015, Folse was indicted and charged with being a felon in possession of a firearm, carjacking and brandishing a firearm during a crime of violence. The indictment alleged that Folse committed the three crimes on July 2, 2015, in Bernalillo County, N.M. A superseding indictment was filed on Sept. 10, 2015, charging Folse with a second carjacking on July 2, 2015, and with using a firearm to commit that crime. This second firearms charge was subsequently dismissed on the United States’ motion.
The superseding indictment also added Albuquerque resident Angela Murray, 34, as a new defendant, charging her with aiding and abetting Folse in committing the first carjacking. On Sept. 29, 2015, the court granted Murray’s motion to be tried separately from Folse.
At the time federal charges were filed against Folse and Murray, both were being held in state custody on related state charges which were later dismissed in favor of federal prosecution.
Trial of Folse on the superseding indictment began on Oct. 5, 2015, and concluded this morning when the jury returned a guilty verdict against Folse on the four charges against him. The evidence at trial established that Folse committed the first carjacking around 11:00 a.m. on July 2, 2015, in an effort to evade APD officers who were trying to locate him as part of a stolen vehicle investigation. Earlier that morning, while APD officers were conducting surveillance on a house in which they believed Folse to be staying, they caught the attention of a man who was in the house and asked him to open the front door.
When the man went to the door, he encountered Folse, who was in the house without the man’s knowledge. Folse, who was armed with a gun and a knife, forced the man into a room where he was holding several others hostage with assistance from Murray. During the hostage situation, Folse threatened to stab one hostage and struck another on the head with a glass object that shattered. When the man did not open the door and without definitive information as to whether Folse was in the house, the officers retreated from the area immediately around the house.
Around 11:00 a.m., Folse and Murray left the house. Folse forced the man and another hostage to accompany him and Murray as they left the area in the man’s car. APD officers responded to the scene as Folse aggressively drove away at a high rate of speed with Murray and the two hostages in the car. While driving, Folse threw a gun out of the window. Thereafter Folse lost control of the car and crashed as he tried to negotiate a curve at a high rate of speed in a residential neighborhood. The car rolled and landed on its roof. Folse and Murray fled from the car leaving their two hostages behind. APD officers were able to arrest Murray shortly thereafter while another officer went on a foot chase after Folse.
Five minutes after the crash, Folse approached a car that was warming up in the driveway of a house. There was no driver in the car but a 13-year-old boy was in the passenger seat. Folse threatened the boy telling him that he had three seconds to get out of the car. The boy immediately complied by jumping out of the car, and was struck by the car door as Folse backed out of the driveway to make his escape. Once again Folse drove off aggressively and at a high rate of speed, and APD officers who were in pursuit had to end their pursuit of Folse so as not to endanger other motorists.
Folse was arrested in the late night hours of July 3, 2015, by officers of the Isleta Pueblo Tribal Police Department.
The jury deliberated approximately four hours before returning its guilty verdict.
“On July 2nd, Folse went on a day-long violent crime spree during which he terrorized a group of hostages at one residence and a teenager at another, and also endangered countless other individuals as he tried to evade arrest. Today’s jury verdict holds Folse accountable for those crimes and validates the efforts of the ATF agents, APD officers, Isleta police officers and federal and state prosecutors who collaborated with each other to ensure that this “worst of worst” offender will no longer menace our community” said U.S. Attorney Damon P. Martinez. “Throughout New Mexico, federal, state, local and tribal law enforcement officers and prosecutors are working together to make our communities safer places for all of us to live, work and raise our families. The U.S. Attorney’s Office is proud to be part of this tremendous effort.”
“We greatly appreciate the hard work, effort and dedication of the U.S. Attorney’s Office in prosecuting this case,” said 2nd Judicial District Attorney Kari E. Brandenburg. “This jury verdict is a substantial win for all partnering agencies and for the community we represent. It truly is another excellent example of the effectiveness of the Worst of the Worse Anti-Violence Initiative, and the positive impact these collaborative efforts have.”
“Taking violent criminals off the streets and putting them behind bars has always been a focus of ATF and our enforcement mission in New Mexico,” said ATF Special Agent in Charge Thomas G. Atteberry. “I commend the agents and officers who repeatedly risked their lives to remove these violent offenders from our communities. I also wish to recognize the leadership of U.S. Attorney Damon P. Martinez and his office in their relentless prosecution of these violent offenders.”
APD Chief Gorden Eden, Jr., added, “Kevin Folse has terrorized the people of Albuquerque for years as a violent repeat offender who has continuously made his way back onto the streets of Albuquerque. The Albuquerque Police Department is very grateful for the unwavering support of the U.S. Attorney’s Office and ATF for bringing federal charges against violent career criminals like Folse. This verdict ensures that Folse will no longer be able to victimize the innocent people in Albuquerque.”
Folse remains in federal custody pending a sentencing hearing which has yet to be scheduled. At sentencing, Folse faces a statutory maximum penalty of ten years in prison for unlawfully possessing a firearm and ammunition and ten years in prison on each of the carjacking charges. Folse faces a statutory mandatory minimum of seven years and a maximum of life in prison for brandishing a firearm during a crime of violence. The sentence on the brandishing charge must be served consecutive to the sentence imposed on the other three charges.
Co-defendant Murray has entered a not guilty plea and remains in custody pending a trial which has yet to be scheduled. If convicted for aiding and abetting Folse in committing the first carjacking offense, she faces a statutory maximum penalty of ten years in prison. Charges in indictments are mere accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the ATF office in Albuquerque and APD with assistance from the Isleta Pueblo Tribal Police Department and the Second Judicial District Attorney’s Office. Assistant U.S. Attorneys Samuel A. Hurtado and William J. Pflugrath are prosecuting the case.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—The results of the October 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Javier Becerra-Sanchez. Reentry of Removed Alien. Becerra-Sanchez, 33, is charged with having returned to the United States unlawfully after being deported in November 2008 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Anthony Dorundo Cox. Felon in Possession of a Firearm and Ammunition. Cox, 31, of Tulsa, is charged with possessing a .40 S&W caliber pistol and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Walter Franklin Deerinwater. Felon in Possession of a Firearm and Ammunition. Deerinwater, 24, of Tulsa, is charged with possessing a 12 gauge shotgun and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Thomas Mongrain Eaves. Second Degree Murder in Indian Country and Voluntary Manslaughter. Eaves, 56, of Pawhuska, an Indian, is charged with second degree murder in Indian Country by killing another person with blunt force trauma. If convicted, the statutory maximum penalty is life in prison and a $250,000 fine for second degree murder, and 15 years in prison and a $250,000 for voluntary manslaughter. The Federal Bureau of Investigation is the investigating agency.
Durian Ramos-Lopez. Reentry of Removed Alien. Ramos-Lopez, 33, is charged with having returned to the United States unlawfully after being deported in September 2011 near Houston, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Jose Alfredo Rivas. Felon in Possession of Firearm and Ammunition and Felon in Possession of a Firearm. Rivas, 28, of Tulsa, is charged with possessing a 9mm caliber pistol and ammunition on June 7, 2014, and a 9mm caliber pistol on September 3, 2015, after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigating agencies.
John Orin Wulffenstein. Felon in Possession of Firearms and Ammunition. Wulffenstein, 63, of Sapulpa, is charged with possessing a firearm and ammunition after having been previously convicted of a felony. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Drug Enforcement Administration is the investigating agency.
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Defiance man charged with stealing from U.S. Postal serviceRead the Press Release
A Defiance man was indicted for allegedly stealing $22,000 in 2015 in his capacity as a postal employee, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio
Douglas A. Bush, 20, was charged with one count of misappropriation of U.S. postal funds.
If convicted, the defendant’s sentences will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Postal Service, Office of the Inspector General. The case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Connecticut Man Indicted for Distributing and Receving Child PornographyRead the Press Release
ALBANY, NEW YORK – Parker Sikand, age 23, of Ellington, Connecticut, was indicted last month on three felony charges of distributing, receiving and possessing child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Upon conviction, Sikand would face a mandatory minimum penalty of 5 years imprisonment on the distribution and receipt charges, with a maximum penalty of 20 years on each of the three charges. He would also face a potential fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender.
Sikand has been released and is subject to pretrial supervision pending a trial scheduled for December 7, 2015 before United States District Court Judge Mae A. D’Agostino. He was indicted on September 24.
Sikand was living in Troy, New York, at the time of his alleged conduct.The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims.
Confronting Wave of Illicit Marijuana Cultivation, Federal, State and Local Authorities Discover and Destroy Major Marijuana Grows in Locations Across ColoradoRead the Press Release
DENVER. – Over the course of the last six weeks, federal, state, and local law enforcement agencies have identified and dismantled a large number of illicit marijuana cultivation sites across Colorado, and seized a large amount of marijuana. Some illicit grows were located in multiple residences and outbuildings, while many others were located on federal land, causing environmental damage to the land that may take years to mitigate. In every case, the marijuana grows were both illegal under federal law and unlicensed by state authorities under Colorado’s marijuana regulatory system. In several cases, the marijuana grown was destined for users outside of Colorado.
These raids, executed by federal law enforcement (DEA, the U.S. Forest Service, the Bureau of Land Management, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI)) and state law enforcement (multiple sheriff’s offices) have resulted in the arrest of 32 individuals in connection with the cultivation sites, and the discovery and seizure or destruction of nearly 20,000 marijuana plants – often mature and ready for harvest -- and over 300 kilograms of dried marijuana. In addition to the marijuana, firearms and cash have been recovered. Further, there are ongoing investigations in a number of the grows listed below.
The 32 individuals arrested face federal drug trafficking charges brought by the United States Attorney’s Office in federal court in Denver and Grand Junction.
As alleged in court documents, nearly all of those arrested are from outside Colorado, either other states or from other countries, and include Mexican and Cuban nationals. Some of those arrested are in the United States illegally. Court documents allege that some of those responsible for the marijuana growing and/or trafficking appear to be working for drug trafficking organizations. To date, the following illicit grows have been identified and dismantled:
- * Private Land, September 1st, Cotopaxi and Westcliffe in Freemont and Custer County, 20 people arrested.
A DEA-led task force executed 8 search warrants in Cotopaxi and Westcliffe as part of a major drug trafficking organization investigation. Agents and officers found well over 1,000 marijuana plants, 50 pounds of dried marijuana, 28 firearms, and $25,000 in cash. The investigation and seizures resulted ultimately in the arrest of 20 individuals, many from Cuba, acting in an organized manner. Those arrested were growing the marijuana in Cotopaxi and Westcliffe, and then either driving or using UPS to send the marijuana to Florida.
- * Pike National Forest, August 19th, in the Green Mountain Area in Jefferson County, investigation is ongoing.
Law Enforcement Officers from the U.S. Forest Service, Department of Homeland Security Investigations (HSI), Jefferson County Sheriff’s Office and the Colorado National Guard Joint Counter Drug Task Force joined together to complete an eradication of an illegal marijuana grow site in the Pike National Forest. The eradication team collected more than 3,900 plants and over 3,000 pounds of irrigation pipe, pesticides, flammable liquids, camping gear and trash.
- * Routt National Forest, August 28th, Buffalo Pass Area in Routt County, 2 arrested.
Law Enforcement Officers from the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Routt County Sheriff’s Office joined together to eradicate an illegal marijuana grow site located in the Buffalo Pass area, northeast of Steamboat Springs, Colorado. The eradication team collected approximately 1,000 plants and removed camping gear from the site. Further, a handgun was found. Additional site clean-up of trash and other items will be ongoing by the U.S. Forest Service. Two Mexican Nationals in the country illegally were arrested.
- * San Isabel National Forest, September 7th, Cordova Pass Area northwest of Trinidad in Huerfano County, 2 arrested.
Hunters discovered an illegal marijuana grow site located in the Cordova Pass area approximately 40 miles northwest of Trinidad. The eradication team collected more than 11,700 plants as well as irrigation pipe, pesticides, flammable liquids, camping gear and trash. The U.S. Forest Service and Huerfano County Sheriff’s Office are working together to identify the individuals. The cultivation site spread across 10 acres with some of the growing areas above 10,000 feet in elevation. The overall grow area included a kitchen structure, three sleeping areas, and a rifle. Two men were arrested at one of the camp sites within the cultivation area.
- * Bureau of Land Management Land, September 15th, along the Dolores River corridor between Gateway and Naturita in Montrose County, 4 arrested.
BLM Rangers discovered more than 1,200 fully mature marijuana plants, many exceeding six-feet-tall, along with 211 kilograms of dried marijuana and a rifle. Because of the size of the operation, officers spent two and a half days eradicating and removing the plants. The rangers arrested four Mexican nationals who were on-scene and believed to be working the grow site.
- * Bureau of Land Management Land, September 30th, also along the Dolores River corridor between Gateway and Naturita in Montrose County, 6 arrested.
Law enforcement officers identified a marijuana grow site, also along the Dolores River. Evidence of at least a thousand marijuana plants appeared recently harvested with approximately 69.6 kilograms of processed marijuana still on site. The rangers arrested one Honduran and five Mexican nationals at or near the site.
These matters represent a wave of illicit marijuana cultivation in violation of federal law and operating outside Colorado’s marijuana regulatory structure. Federal, state and local authorities are working in close cooperation to address this unusually large and widespread group of illicit marijuana grows. In addition, federal, state and local authorities are engaged in investigation of other potential illicit grows around the state.
Each of these enforcement actions is pursuant to, and consistent with, the Department’s Guidance Memorandum of August 29, 2013 to federal prosecutors, also known as the “Cole Memo.” The Cole Memo set forth eight areas of federal interest (the “Cole Factors”) and advised federal prosecutors to focus federal law enforcement resources on those priority areas. The enforcement actions summarized in this press release implicate many of those federal interests, including but not limited to:
- Preventing revenue from the sale of marijuana from going to criminal enterprises, gangs and cartels;
- Preventing the diversion of marijuana from states where it is legal under state law in some form to other states;
- Preventing violence and the use of firearms in the cultivation and distribution of marijuana;
- Preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and
- Preventing marijuana possession or use on federal property.
In addition, these marijuana grows represent systematic efforts to evade and sidestep Colorado’s ongoing regulatory efforts under state law, and as a result implicate the Cole Memo’s emphasis on ensuring that state regulatory regimes are effective in practice.
“These joint federal-state law enforcement actions against large illicit marijuana grows represent a new phase in the challenges facing law enforcement after Colorado’s legalization and regulation of marijuana under state law,” said United States Attorney John Walsh. “Illegal activity of this kind underscores the need for strong, joint law enforcement efforts by federal and state authorities to identify, cut off and destroy the efforts of drug trafficking organizations to use Colorado as a ‘source state’ for export of illegal marijuana around the country. State and local authorities deserve our appreciation and support for their efforts on the ground to team up with federal authorities on this critically important effort to keep Colorado safe.”
“The illegal cultivation of marijuana is a serious threat to our communities, especially when it’s done on public land,” stated Barbra Roach, Special Agent in Charge of the Drug Enforcement Administration’s Denver Field Division. “Our parks and public lands are for everyone to enjoy, and the health and safety of visitors must not be threatened by the illegal activities of criminal organizations and the cultivators they employ. Those responsible must be stopped and held accountable.”
“Since many of the suspects of the recently discovered marijuana grow operations in Colorado are undocumented aliens, Homeland Security Investigations can provide unique and extensive law enforcement authorities to investigate these cases,” said David A. Thompson, special agent in charge of HSI Denver. “Our partnership with other local, state and federal law enforcement agencies helps ensure that these criminal organizations are totally dismantled, making communities and public lands safer.”
“The Forest Service remains committed to provide public safety and protection of the natural resources on national forest lands by aggressively working to locate illegal marijuana sites, arrest and pursue prosecution of the growers and clean up the sites,” said U.S. Forest Service Special Agent in Charge Laura Mark. “The significant safety concerns and environmental damage caused by these marijuana sites is a priority for Forest Service Law Enforcement.”
"Illegal marijuana cultivation on public land brings hazards like illegal waste disposal, use of illegal pesticides, herbicides, and rodenticides; and the illegal use of the public's water," said BLM Colorado Special Agent in Charge Gary Mannino. "In order to protect the public as well as the public's natural resources, BLM will continue to enforce federal prohibitions on marijuana cultivation on public lands. This is particularly timely during hunting season, when so many Coloradans head out to enjoy their public lands."
“It is vitally important that we work together with our law enforcement partners in the endeavor to locate and eliminate illegal marijuana grow operations off of our public lands and out of our neighborhoods,” said Jefferson County Sheriff Jeff Shrader.
“As the elected sheriff of Routt County, I am proud of the working relationship with our Federal partners regarding all matter of public safety,” said Garrett Wiggins, Sheriff of Routt County. “Earlier this year, the Routt County Sheriff’s Office partnered with numerous federal and state law enforcement agencies in a large, illegal marijuana grow investigation located in the Routt National Forest. Even though the State of Colorado passed state laws legalizing limited marijuana use, the practice of growing illegal marijuana crops on our public lands continues. This illegal practice creates serious public safety concerns for our citizens enjoying the many outdoor activities in our areas. In addition, these clandestine activities cause serious concerns to our natural resources associated with erosion and contamination of water sources from chemical and sometimes illegal substances being introduced through the fertilization process. Our goal is to continue to work with all our local, state and federal partners in investigating all public safety issues and hold those individuals accountable who participate in illegal activity.”
“Huerfano County is experiencing the same problems with marijuana that many other counties are – that citizens think because it is legal they can do whatever they want,” said Huerfano County Sheriff Bruce Newman. “Those who don’t follow the law will be arrested and their marijuana confiscated and destroyed.”
“I would like to extend my appreciation to the U.S. Attorney’s Office, DEA, Fremont County Sheriff’s Office, Pueblo County Sheriff’s Office and the Pueblo Police Department for their direct assistance in this operation,” said Custer County Sheriff Shannon K. Byerly. “Their help was critical in conducting this without incident. I would also like to recognize the efforts of the men and women of the Custer County Sheriff’s Office who contributed to this mission. This was an important step to gain control over the illegal production and sales of Marijuana in our area and we will continue to investigate those attempting to take advantage of the Marijuana laws in Colorado. Our communities earned an important victory today.”
“Because of the negative impact illegal drug trafficking has on our communities, we are very appreciative of the superb relationships that have been fostered between the federal agencies and all the local agencies involved. With this cooperative effort, we have come together to address a mutual problem,” said Fremont County Undersheriff Ty Martin.
Many agencies have worked together to identify and eradicate these public grows. Those agencies include: the Drug Enforcement Administration, the U.S. Forest Service, the Bureau of Land Management, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and local and state law enforcement.
Those arrested are being prosecuted by Assistant U.S. Attorneys from the Major Crimes Section and the Drug Task Force Section of the Colorado U.S. Attorney’s Office.
Columbia Man Charged with Sexual Exploitation of ChildrenRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Roberto Luis Molinary, Jr, age 49, of Columbia, South Carolina has been indicted by the Grand Jury, in Columbia, with a three-count indictment for inducing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct, receiving and possessing child pornography in violation of 18 U.S.C. § 2251, 2252A and 2256. Mr. Nettles stated the penalty for sexual exploitation of children is imprisonment of not less than 15 to 30 years. The penalty for receiving child pornography is imprisonment of 5 to 20 years. The maximum penalty for possession of child pornography is 20 years. The case was investigated by the University of South Carolina Police Department, the South Carolina Law Enforcement Division and the Federal Bureau of Investigation. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Columbia Investment Fraudster Pleads GuiltyRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Robert S. Leben, of Columbia, South Carolina has entered a guilty plea in federal court in Columbia, to Conspiracy to Commit Mail Fraud, a violation of 18 U.S.C. § 371. United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the defendant concocted a scheme that defrauded 11 investors of over three million dollars. The defendant’s scheme promised high rates of returns (8-16 percent) based on a combination of AAA rated U.S. Treasury debt obligations and the commodities markets. Despite these assurances, the defendant stole the money, converted the funds to cash, purchased and furnished a $500,000 house, installed an elaborate backyard pool and landscape costing about $180,000, gave over $100,000 to his sons, went on numerous ski vacations around the country, paid for surgical procedures for his wife, all while also paying for his daily expenses.
Mr. Nettles stated the maximum penalty for Conspiracy to Commit Mail Fraud is imprisonment for 5 years and/or a fine of $250,000.
The case was investigated by agents of the FBI. Assistant United States Attorneys Winston Holliday and Jim May of the Columbia office are prosecuting the case.
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Cleveland woman charged with stealing nearly $190,000 from Social SecurityRead the Press Release
A criminal information was filed in U.S. District Court today charging Barbara J. Clark, 62, of Cleveland, with theft of public money, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The alleged theft, occurring between1983 and 2014, resulted in a loss of approximately $188,973 to the Social Security Administration.
The United States Social Security Administration Office of the Inspector General conducted the investigation. The case is being prosecuted by Special Assistant United States Attorney Lisa J. Sanniti.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A criminal information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cincinnati Men Charged Federally for Illegal Possession of FirearmsRead the Press Release
CINCINNATI – A federal grand jury has charged Keno Phillips, 41, of Cincinnati, Ohio, with possession with intent to distribute cocaine, possession of a firearm by a prohibited person and possession of a firearm in furtherance of a drug trafficking offense and Steve Ivery, 30, of Cincinnati, Ohio, with possession of a firearm and ammunition by a prohibited person, in indictments returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Interim Cincinnati Police Chief Eliot Isaac, and Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbus Field Division, announced the indictments returned yesterday.
The indictment charging Phillips alleges that he possessed a mixture of cocaine and a semi-automatic handgun, along with ammunition, and that he used the loaded handgun in furtherance of a drug trafficking crime. Phillips is a convicted felon, having been convicted in both state and federal courts.
The indictment charging Ivery alleges that he possessed a revolver and ammunition after being convicted of three violent felonies. Ivery is charged as being an Armed Career Criminal.
Phillips faces a mandatory sentence of 5 years and up to life for possession of a firearm in furtherance of a drug trafficking offense, up to 10 years imprisonment for possession of a handgun and ammunition by a prohibited person. Ivery faces a mandatory sentence of 15 years and up to life for the offense he currently faces.
“These indictments illustrate the commitment of state and federal law enforcement working together to pursue federal charges against those who illegally wield weapons and perpetuate gun violence,” U.S. Attorney Stewart said.
U.S. Attorney Stewart commended the investigation of this case by the Cincinnati Police Department and ATF, and Assistant U.S. Attorneys Christy Muncy and Timothy Oakley who are prosecuting the cases.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Canadian Man Pleads Guilty to Benefit Fraud and Aggravated Identity TheftRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Jerome Bond, 46, recently of Gardiner, Maine, pled guilty today in U.S. District Court to theft of public money and aggravated identity theft.
According to court records, on about January 19, 2011, Bond applied for and was granted Supplemental Nutrition Assistance Program (“SNAP”) benefits using the name of an actual U.S. citizen. SNAP offers nutrition assistance to eligible, low-income individuals. Bond, a Canadian citizen, was not eligible for SNAP benefits at the time of application and improperly received over $5,900 in SNAP benefits.
Bond faces up to 10 years in prison, three years of supervised release and a $250,000 fine for benefit fraud and a mandatory additional two years in prison for aggravated identity theft.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine Office of the Attorney General, and the Maine Department of Health and Human Services.
Canadian Man Gets 2 Years in Prison for Illegal Re-EntryRead the Press Release
ALBANY, NEW YORK – Jean Jacques Joseph Binette, age 53, of Canada, was sentenced today to serve 24 months in prison for illegally re-entering the United States, announced United States Attorney Richard S. Hartunian and Michael T. Phillips, Buffalo Field Office Director of Enforcement & Removal Operations for U.S. Immigration and Customs Enforcement.
In August, Binette pleaded guilty to a violation of the Immigration and Nationality Act, which prohibits previously removed aliens from entering, attempting to enter or being found in the United States without permission. Binette was sentenced by U.S. District Court Judge Lawrence E. Kahn. Following Binette’s prison term, he will be removed from the United States.
Binette was prosecuted after he was encountered in June 2015 by the New York State Police in Dresden, New York. Immigration and Customs Enforcement (ICE) Officers then determined that Binette was an alien unlawfully present in the United States.
A check of Binette’s fingerprints indicated that he had been deported from the United States to Canada in 2000 after being convicted of an aggravated felony in Cook County, Illinois, in 1994. Binette was also deported a second time in 2002.
This case was investigated by U.S. Immigration and Customs Enforcement, with assistance from the New York State Police, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Businessman Arrested for Introducing Misbranded Drugs into Interstate Commerce, Conspiracy, Wire and Mail FraudRead the Press Release
SAN JUAN, P.R. – Yesterday, a Federal grand jury returned an indictment against Jorge L. Pagán Kortright and his companies AWD Group Inc. doing business as El Torito USA, Inc., Allied Worldwide Distributors Inc., and All Wheel Drive Corp., for introduction of misbranded drugs into interstate commerce, conspiracy to commit wire fraud, wire fraud, and mail fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), with the collaboration of the Puerto Rico Police Department, Guayama Municipal Police, and the Puerto Rico Treasury Department (Departamento de Hacienda).
The indictment alleges that the defendants, aiding and abetting each other, with the intent to defraud or mislead, introduced and delivered for introduction into interstate commerce drugs, namely, “El Torito Plus 1000 mg,” ‘El Torito Xtreme 500 mg,” and “El Torito Black Bull Power 500 mg” that were misbranded; the labeling of each drug was false and misleading. The drugs were sold on El Torito’s website, Amazon.com, eBay.com, and at gas stations throughout Puerto Rico.
“El Torito Plus 1000 mg,” “El Torito Xtreme 500 mg,” and “El Torito Black Bull Power 500 mg,” were capsules and pills sold over the counter and on the Internet that were labeled and marketed as “100% natural” dietary supplements and performance enhancers. The capsules and pills were marketed as “natural supplements for men and women” to “help” “achieve a pleasant and lasting sexual experience with all natural ingredients.” In fact, El Torito’s products contained sildenafil and tadalafil (the active ingredients in Viagra™ and Cialis™ respectively), and their synthetic analogs, including desmethyl-carbodenafil and dithiodesmethyl-carbodenafil. Sildenafil and tadalafil are the active ingredients of branded drugs approved by the FDA and are also “prescription drugs” that, because of their toxicity and other potential harmful effects, were not safe for use except under the supervision of a practitioner licensed by law to administer such drugs. These undeclared ingredients may interact with nitrates found in some prescription drugs such as nitroglycerin and may lower blood pressure to dangerous levels for individuals with diabetes, high blood pressure, high cholesterol, or heart disease.
It was the object of the conspiracy for defendants and their coconspirators to unlawfully enrich themselves by obtaining money and property from individuals under the false and fraudulent pretenses and representation that individuals were purchasing “100% natural” dietary supplements and performance enhancers when, in fact, defendants were selling misbranded prescription drugs.
During the course of the conspiracy, e-mail communications were sent by defendants to their manufacturers, distributors, and others in furtherance of the scheme to defraud and payments were received using PayPal. For example, one of the emails sent by an El Torito distributor to [email protected] under the name “Jorge Pagan” stated that: “you need to change the pictures of Torito chinese box from the website because the sheriff will probably look at the site for info and i told them that Torito is made in usa and i showed them the box without the chinese letters.”
Another email communication sent from [email protected] under the name “Jorge Pagan” to a manufacturing contact stated that he was “only worried about my investment and the loss of money if authorities find controlled ingredients. The authority will only get involve when the big pharmasuricals [sic] companies pressure them because they lose sales with these products.” “If Mr. Wangs product get problems, all he has to do is send me a new brand name box and just change the style of the packaging the capsule in the blister pack and we can do this for ten years. So the authorities will be fooled all the time.”
As part of the scheme to commit the mail fraud, the defendants knowingly placed in an authorized depository for mail, to be sent and delivered by the United States Postal Service, numerous El Torito products.
“The authorities were not fooled by these criminals who are now in federal custody,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “The law requires that drugs be produced and branded under the most rigorous of quality standards. When individuals and companies fail to exercise the vigilance that the law demands, they will held be accountable. Today’s arrest shows that we will not tolerate criminals who engage in fraudulent schemes in order to enrich themselves without considering how their actions may affect the health and well-being of others.”
“Distributing prescription drugs disguised as all-natural dietary supplements puts the health and safety of the American public at risk,” said Acting Special Agent in Charge Robert J. West, FDA Office of Criminal Investigations’ Miami Field Office. “We will continue to focus our resources on removing illegal products from the marketplace, as well as prosecuting those who attempt to evade FDA regulations.”
FDA-OCI was the lead agency which conducted the investigation, with the collaboration of PRPD, Hacienda and the Guayama Municipal Police. The case is being prosecuted by Assistant U.S. Attorney Luke Cass. Attorney Shannon M. Singleton from the FDA’s Office of Chief Counsel provided valuable assistance to this criminal investigation.
If found guilty, the defendant could face a possible sentence of up to 30 years in prison for the mail and wire fraud counts. Indictments contain only charges and are not evidence of guilt. Defendants are presumed innocent unless and until proven guilty by a unanimous jury.
If you have used El Torito products in the past and have questions you may call 1-888-INFO-FDA or contact the FDA online at www.fda.gov.
Bloomfield Man and Albuquerque Woman Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionsRead the Press Release
ALBUQUERQUE – Curtis Murray, Sr., 52, of Albuquerque, N.M., and Yvonne Anaya, 40, of Bloomfield, N.M., were sentenced today in federal court in Albuquerque, N.M., for their involvement in a Feb. 2014, drug trafficking conspiracy. Murray was sentenced to 33 months in prison followed by six years of supervised release. Yvonne Anaya was sentenced 48 months in prison followed by one year of supervised release.
Murray and Yvonne Anaya are two of 29 individuals charged with drug trafficking offenses as the result of a multi-agency investigation targeting drug trafficking in northwestern New Mexico. The investigation culminated on Feb. 26, 2014, when 26 of the defendants were arrested during a law enforcement operation led by Homeland Security Investigation (HSI) and the HIDTA Region II Narcotics Task Force. Two other defendants were arrested during the course of the investigation and the final defendant was arrested on March 3, 2014.
The 29 defendants were charged as a result of Operation “Brown Ice,” a year-long investigation that initially targeted a methamphetamine trafficking organization led by Isaac Anaya, 31, of Farmington, N.M., that distributed quantities of methamphetamine throughout San Juan County, N.M., and expanded to include other drug trafficking activity in the area. 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.
Thirteen of the defendants, including ringleader Isaac Anaya were charged in a 15-count federal indictment alleging a conspiracy to distribute methamphetamine in San Juan County from May 2013 through Sept. 2013. The remaining 16 defendants were charged with state drug trafficking and firearms offenses based on criminal complaints. During the course of the investigation, officers seized approximately five pounds of methamphetamine and five firearms. The law enforcement operation on Feb. 24, 2014, included the execution of eleven federal search warrants at two Bloomfield residences, four Farmington residences, two residences in San Juan County, two Bloomfield businesses, two Farmington businesses and a storage unit in Bloomfield. It also included the execution of three state search warrants at two residences in San Juan County and one Farmington residence. Officers seized numerous firearms, including a fully automatic Glock 19, a short-barreled rifle and a carbine with an obliterated serial number, four blasting caps, four small binary explosives and approximately 31.7 grams of methamphetamine during the execution of the search warrants and the law enforcement operation.
On Feb. 26, 2015, Murray pled guilty to conspiracy to distribute methamphetamine and admitted that from May 28, 2013 through Sept. 25, 2013, he conspired with others to distribute methamphetamine in San Juan County. Murray further admitted that he worked as a distributor of methamphetamine on behalf of Isaac Anaya
On March 13, 2015, Yvonne Anaya pled guilty to the use of a telephone to facilitate a drug trafficking crime and admitted to contacting Isaac Anaya on multiple occasions regarding drug trafficking activities and the possibility that Isaac Anaya was being investigated by law enforcement.
The federal and state cases filed as a result of Operation “Brown Ice” were investigated by the HSI office in Albuquerque, San Juan County Sheriff’s Office, HIDTA Region II Narcotics Task Force, Bloomfield Police Department, Farmington Police Department and Aztec Police Department. Assistant U.S. Attorney Reeve L. Swainston is prosecuting the federal case, and Assistant District Attorney David Cowen of the 11th Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Birmingham Receives $300,000 DOJ Safe Neighborhoods GrantRead the Press Release
Multi-Faceted Approach to Target Violent Gang and Gun Crime
BIRMINGHAM -- The U.S. Department of Justice in September granted the City of Birmingham nearly $300,000 for a program that combines intensified enforcement in high-crime neighborhoods with literacy education and increased supervision and support during probation and parole in a comprehensive approach aimed at reducing gun crime and gang violence, announced U.S. Attorney Joyce White Vance.
DOJ's Bureau of Justice Assistance awarded a Project Safe Neighborhoods grant of $294,867 over two years to Birmingham for its Violent Gang and Gun Crime Reduction Program. The city will use the grant to reduce gang gun violence in Birmingham by implementing saturation patrols in areas with the highest gun crime, and by increasing supervision of at-risk probationers and parolees who live in the high gun-crime areas, according to the grant notification from DOJ's Office of Justice Programs. Birmingham also will implement a Better Basics literacy program for children living in those high crime areas.
The federal PSN program is designed to create safer neighborhoods through a sustained reduction in gun crime and gang violence. The program's effectiveness depends on the cooperation of local, state and federal agencies engaged in a unified approach led by the U.S. attorney. The U.S. Attorney's Office in the Northern District of Alabama has developed numerous partnerships in the Birmingham area, over several years, to help implement a comprehensive PSN strategy to reduce violent crime in the city.
"My office has an effective PSN Task Force that includes law enforcement at all levels," Vance said, "but it also includes researchers and community service providers and support organizations because law enforcement alone will not solve the problem of violent crime," she said. "This DOJ grant will support the multi-faceted approach necessary to fight the crime and to fight the deficits in education and support services that lead new generations into crime and lead those who have served their time in prison to return to crime."
"This grant will help us to achieve the goal of ultimately creating a safer city," said Birmingham Mayor William A. Bell Sr. "The joint effort and interagency support is key to allowing the city to really make great strides in making street-level changes that impact us all.”
"We believe this grant will definitely benefit our efforts to build and sustain a comprehensive approach to reducing violent crime and delinquency in our city," said Birmingham Police Chief A.C. Roper. "This funding will enhance the great teamwork and collaboration amongst our law enforcement agencies and community partners.”
“Pardons and Paroles values its partnership with the U.S. Attorney’s Office for the Northern District, the City of Birmingham, and local community providers as we strategically proceed with creating a safer community by reducing gun crime and gang violence together," said Alabama Pardons and Paroles Board Member Robert P. Longshore. "Funding for much needed agency staff through this grant opportunity will bolster the efforts the state is making to increase public safety by investing in Alabama’s probation and parole officer workforce," he said. "Our local office is committed to dedicating resources in this effort to target high-risk/violent supervised offenders to protect public safety, and assisting with a call-in program to curb the likelihood that supervised offenders will commit new, firearm-based offenses.”
The grant-funded multi-dimensional approach to reducing gang gun violence will bring together the mayor's office, the Birmingham Police Department, the University of Alabama at Birmingham, The Alabama Board of Pardons and Paroles, the non-profit Dannon Project and the Better Basics literacy program.
The city will employ a researcher from UAB to analyze crime and gunshot data to identify the city's violent crime hotspots. The Birmingham Police Department's Neighborhood Enforcement Team and Crime Reduction Team will saturate those hotspots with patrols and will add equipment and training to enhance the department's capacity to combat firearms crime. The Community Policing and Revitalization program in the mayor's office will increase programming within the designated hot spots.
The state pardons and paroles board will work with the U.S. Attorney's Office, the U.S. Marshall Service and the Birmingham Police Department to identify high-risk probationers and parolees and designate them for intensified monitoring, which will make those supervisees eligible for U.S. Department of Labor-funded job-training services from The Dannon Project.
To address the link between academic failure and delinquency, violence and crime, Better Basics will increase its literacy programs for elementary students in schools within identified areas of high violent crime.
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Alleged Dollar Store Robber ChargedRead the Press Release
PHILADELPHIA - Terrence Harper, 41, of Philadelphia, PA, was charged today by indictment with two robberies and an attempted robbery at businesses in Philadelphia, announced United States Attorney Zane David Memeger. According to the indictment, on December 13, 2013, Harper attempted to rob the Family Dollar Store, located at 6337 North Broad Street, and carried out a robbery at that same Family Dollar Store on December 15, 2013. Harper also allegedly robbed the Whisper Inn, at 7610 Ogontz Avenue, on December 18, 2013. The indictment also charges Harper with related firearms offenses.
If convicted of all charges, the defendant faces a mandatory minimum sentence of 32 years in prison with a statutory maximum sentence of life, up to five years of supervised release, a $500 special assessment, possible fines, and restitution.
This case was investigated by the Federal Bureau of Investigation, Philadelphia Police Department, and the Philadelphia District Attorney=s Office. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albany Man Pleads Guilty to Importing A Controlled SubstanceRead the Press Release
ALBANY, NEW YORK – Damon J. Murray, age 27, of Albany, pleaded guilty today to importing the controlled substance ethylone into the United States, announced U.S. Attorney Richard S. Hartunian and Homeland Security Investigations (HSI) Assistant Special Agent in Charge Nicholas DiNicola.
Murray will face a maximum term of imprisonment of 30 years, a maximum fine of $2 million, and a term of supervised release of at least 6 years and up to life when he is sentenced on February 11, 2016 by United States District Judge Mae A. D’Agostino.
Ethylone, which is often used as a party drug, has been categorized as a Schedule I controlled substance since March 2014.
On February 12, 2015, U.S. Customs and Border Protection Officers in Cincinnati, Ohio, intercepted a package that had been sent from China to the United States, and which was addressed to “Damon Murray LLC” at the defendant’s residential address in Albany. The package was found to contain about 400 grams of ethylone. On February 26, 2015, the defendant accepted and signed for the package. HSI Special Agents then arrested the defendant, who admitted ordering the ethylone from China and also previously selling ethylone to others, sometimes marketing it as “molly.”
This case was investigated by Homeland Security Investigations, with assistance from the Albany County Sheriff’s Office and U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Alamogordo Man Sentenced to Federal Prison for Possession of Unregistered Saw-Offed ShotgunRead the Press Release
ALBUQUERQUE – Kenneth Colby Miller, 31, of Alamogordo, N.M., was sentenced today in federal court in Las Cruces, N.M., to 30 months in prison followed by three years of supervised release for violating the federal firearms laws by possessing an unregistered firearm.
Miller was arrested on April 30, 2015, on a criminal complaint charging him with possession of an unregistered firearm. According to the complaint, on Dec. 3, 2014, an officer with the Roswell Police Department conducted a routine traffic stop on Miller’s vehicle in Chaves County, N.M. After conducting a consensual search of Miller’s vehicle, the officer recovered a single shot “sawed-off” shotgun with no visible serial number or manufacturers markings. After further investigation, Miller’s background also revealed that he had been convicted twice of unlawful taking of a motor vehicle and reckless driving.
On July 1, 2015, Miller pled guilty to a felony information charging him with possession of an unregistered firearm. In entering the guilty plea, Miller admitted that on Dec. 3, 2014, he possessed a sawed-off 20 gauge shotgun which did not have a serial number and was not registered to him in the National Firearms Registration and Transfer Record.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roswell Police Department. Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.