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7 October 2015
Federal Authorities Dismantle Drug Trafficking Organization Responsible for Transporting Cocaine and Money Between Puerto Rico-Florida-ConnecticutRead the Press Release
SAN JUAN, PR – This morning, the Organized Crime Drug Enforcement Task Force (OCDETF) dismantled a drug trafficking organization responsible for the transportation of multi-kilogram quantities of cocaine and drug money between Puerto Rico and the Continental United States, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Drug Enforcement Administration (DEA) is in charge of the investigation with the collaboration of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On September 30, 2015, a federal grand jury returned a three-count indictment charging 37 individuals with participating in a conspiracy to possess with intent to distribute cocaine and conspiracy to tamper with a witness. The defendants are: Luis Rivera-Ramos, aka “Luigi;” Rubén Barceló-Severino, aka “Chucky;” Jesús M. Vázquez-Rivera; Glarivy Rivera-Huertas; Luis Pintor; Antonio Llano-Mulley, aka “Pupolo;” Valeria Ramos-Ruiz; Ashley Flores-Carter; Kenneth Rivera-Ramos, aka “Gazu;” Kelvin Collazo-Rodríguez, aka “Pirulo;” Eddie Fernández-Ruiz; Carmen Yaritza Povez-James; Xavier Camacho-Valdés; Carmen Odalis Flores-Dávila; Valeria Mojica-De Jesús; José Burgos-Estrada; Joselyn Alicea-Villegas; David Reyes-Santiago; Deyaneira Reyes-Santiago; Kevin Reyes-Santiago; Jonathan Reyes-Santiago; Pedro Ramos-Ruiz; Lynn Ramos; Alba Torres-Suárez; Aníbal Torres-Pérez; Ayleen Santana-Gómez; Blanca Calo-Vázquez; Dariana Santiago-Falcón; Esteban A. Rivera-Guzmán; Gilberto Villegas; Joson F. Abreu; Jessica Martínez-Alfaro; Juan Figueroa-Cabrera; Kacsy Maldonado-Giegel; Liliana Geigel-Rivera; Llinozca Delgado-Ríos; and Nayad Pujols-Noboa.
The investigation leading to today’s arrests uncovered that members of this organization utilized drug mules to smuggle kilograms of cocaine hidden in suitcases on airplanes flying out of the Luis Muñoz Marín International Airport (LMMIA). The kilograms of cocaine were vacuum sealed and pressed into the approximate width of a magazine and were then wrapped in carbon paper. The suitcases were altered to contain a hidden compartment in the bottom, where the kilograms of cocaine were concealed. The suitcases typically contained two kilograms each and the mules would travel with one or two suitcases at a time.
The organization instructed the mules on how to handle law enforcement in the event that they were arrested for smuggling. The organization’s leadership would provide the mules with a story to tell law enforcement to lead them in the wrong direction and away from the organization. The organization also utilized intimidation and threats of violence to prevent the mules from cooperating with law enforcement.
“These arrests are a clear indication of the success of the OCDETF in the fight against drug trafficking. Today’s arrests dismantle an organization that coordinated not only the traffic of cocaine between Puerto Rico and the Continental United States, but also the movement of drug money, essential to the success of these illegal activities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue maximizing all of our combined resources to investigate and prosecute those who disregard our laws and try to smuggle illegal contraband into our jurisdiction.”
The case is being prosecuted by Assistant United States Attorney Aaron Howell.
If found guilty, the defendants are facing terms of imprisonment from 10 years to life. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
The case was investigated by agents from the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney’s Office for the District of Puerto Rico and PRPD's Joint Forces for Rapid Action.
The Airport Investigations and Tactical Team (AirTAT) operates in the District of Puerto Rico as an OCDETF strategic initiative that is part of the National Airport Initiative. It is a multi-agency, co-located task force that includes DEA, HSI, FBI, USPIS, CBP - Office of Field Operations and ATF. AirTAT also works closely with the Police of Puerto Rico. AirTAT’s mission is to identify, locate, disrupt, dismantle and prosecute TCOs and their operatives using the Luis Muñoz Marín International Airport (LMMIA), the Fernando Luis Rivas Dominicci Airport (FLRDA) and airport peripherals as platforms to smuggle narcotics, weapons, human cargo, counterfeit documents, illicit proceeds and other contraband through these critical airport infrastructures.
El Paso Area Man Sentenced to 20 Years Imprisonment for Sex Trafficking of MinorsRead the Press Release
In El Paso this morning, 42-year-old Adam Deswan Guzman of Socorro, TX, was sentenced to 18 years imprisonment followed by ten years of supervised release for federal sex trafficking violations involving minors announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On June 26, 2015, Guzman pleaded guilty to two counts of sex trafficking of children. By pleading guilty, Guzman admitted that between November 2013 and December 2013, he coerced two minor females into engaging in sexually explicit activity in the El Paso area for financial gain.
Guzman has remained in federal custody since being arrested by FBI agents on April 2014.
This case was investigated by the Federal Bureau of Investigation (FBI) together with the Texas Department of Public Safety. Assistant United States Attorneys Robert Almonte and Anna Arreola prosecuted this case on behalf of the Government.
Eastern Oregon Ranchers Convicted of Arson Resentenced to Five Years in PrisonRead the Press Release
EUGENE, Ore. – Dwight Lincoln Hammond, Jr., 73, and his son, Steven Dwight Hammond, 46, both residents of Diamond, Oregon in Harney County, were sentenced to five years in prison by Chief U.S. District Judge Ann Aiken for arsons they committed on federal lands.
A jury sitting in Pendleton, Oregon found the Hammonds guilty of the arsons after a two-week trial in June 2012. The trial involved allegations that the Hammonds, owners of Hammond Ranches, Inc., ignited a series of fires on lands managed by the U.S. Bureau of Land Management (BLM), on which the Hammonds had grazing rights leased to them for their cattle operation.
The jury convicted both of the Hammonds of using fire to destroy federal property for a 2001 arson known as the Hardie-Hammond Fire, located in the Steens Mountain Cooperative Management and Protection Area. Witnesses at trial, including a relative of the Hammonds, testified the arson occurred shortly after Steven Hammond and his hunting party illegally slaughtered several deer on BLM property. Jurors were told that Steven Hammond handed out “Strike Anywhere” matches with instructions that they be lit and dropped on the ground because they were going to “light up the whole country on fire.” One witness testified that he barely escaped the eight to ten foot high flames caused by the arson. The fire consumed 139 acres of public land and destroyed all evidence of the game violations. After committing the arson, Steven Hammond called the BLM office in Burns, Oregon and claimed the fire was started on Hammond property to burn off invasive species and had inadvertently burned onto public lands. Dwight and Steven Hammond told one of their relatives to keep his mouth shut and that nobody needed to know about the fire.
The jury also convicted Steven Hammond of using fire to destroy federal property regarding a 2006 arson known as the Krumbo Butte Fire located in the Malheur National Wildlife Refuge and Steen Mountain Cooperative Management and Protection Area. An August lightning storm started numerous fires and a burn ban was in effect while BLM firefighters fought those fires. Despite the ban, without permission or notification to BLM, Steven Hammond started several “back fires” in an attempt save the ranch’s winter feed. The fires burned onto public land and were seen by BLM firefighters camped nearby. The firefighters took steps to ensure their safety and reported the arsons.
By law, arson on federal land carries a five-year mandatory minimum sentence. When the Hammonds were originally sentenced, they argued that the five-year mandatory minimum terms were unconstitutional and the trial court agreed and imposed sentences well below what the law required based upon the jury’s verdicts. The Ninth Circuit Court of Appeals, however, upheld the federal law, reasoning that “given the seriousness of arson, a five-year sentence is not grossly disproportionate to the offense.” The court vacated the original, unlawful sentences and ordered that the Hammonds be resentenced “in compliance with the law.” In March 2015, the Supreme Court rejected the Hammonds’ petitions for certiorari. Today, Chief Judge Aiken imposed five year prison terms on each of the Hammonds, with credit for time they already served.
“We all know the devastating effects that are caused by wildfires. Fires intentionally and illegally set on public lands, even those in a remote area, threaten property and residents and endanger firefighters called to battle the blaze” stated Acting U.S. Attorney Billy Williams.
“Congress sought to ensure that anyone who maliciously damages United States’ property by fire will serve at least 5 years in prison. These sentences are intended to be long enough to deter those like the Hammonds who disregard the law and place fire fighters and others in jeopardy.”
Assistant U.S. Attorneys Frank R Papagni, Jr., AnneMarie Sgarlata and Kelly Zusman handled the prosecution of this case.
District Man Sentenced to 55 Months in Prison for Stabbing Near Downtown LibraryRead the Press Release
WASHINGTON – Darryl Green, 49, of Washington, D.C., was sentenced today to a 55-month prison term for stabbing a man last spring in front of the Martin Luther King Jr. Memorial Library, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Green pled guilty in June 2015, in the Superior Court of the District of Columbia, to the felony charge of assault with a dangerous weapon. He was sentenced by the Honorable Milton C. Lee. Following his prison term, Green will be placed on three years of supervised release.
According to the government’s evidence, on May 13, 2015, at about 4:55 p.m., members of the Metropolitan Police Department (MPD) located the victim at 901 G Street NW, suffering from five stab wounds. The victim had been standing by a fire hydrant in front of the Martin Luther King Jr. Memorial Library, when he was attacked from the rear side. The victim felt multiple stab wounds, with the first wound to his back, and subsequent stab wounds to his face, stomach, right hip and leg area. When he turned around, he saw his attacker, and he provided police with a description. The assault was recorded on video-surveillance tape, and the subsequent investigation led to the identification of Green as the suspect.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the officers, detectives, and others who worked on the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Vivien Cockburn, who investigated and prosecuted the case.
Curry County Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – John Jesse Perez, Jr., 46, of Clovis N.M., was sentenced today in Albuquerque, N.M., to 36 months in prison for his methamphetamine trafficking conviction, and to 24 months for violating his supervised release on an earlier conviction. Because 10 months of the 24 month sentence must be served consecutive to his 36 month sentence with the remaining 14 months to be served concurrently, Perez was sentenced to a total of 46 months in prison. Perez will be on supervised release for five years after completing his prison sentence.
Perez and his three co-defendants, Christopher Jason Kidd, 38, and Tina Tafoya, 33, of Clovis, and Jeanette Driever, 38, of Grady, N.M., were indicted in Feb. 2014, on federal methamphetamine trafficking charges. Count 1 of the three-count indictment charged the four defendants with conspiring to distribute methamphetamine in Curry County, N.M., between Sept. 2013 and Nov. 2013. Count 2 charged Kidd and Tafoya with possession of methamphetamine with intent to distribute on Nov. 6, 2013. Count 3 charged Driever and Perez with possession of methamphetamine with intent to distribute also on Nov. 6, 2013.
Perez and Driever entered guilty pleas to federal drug trafficking charges on Nov. 20, 2014. Each pled guilty to participating in a conspiracy to distribute methamphetamine in Curry County. Perez acknowledged participating in a methamphetamine trafficking conspiracy that involved Driever, Kidd, Tafoya and others. Driever admitted that she and Perez obtained quantities of methamphetamine from Kidd and Tafoya and then distributed the methamphetamine to others.
Tafoya entered a guilty plea on Dec. 17, 2014, and admitted conspiring with Kidd, Driever and Perez to distribute methamphetamine in Curry County in fall of 2013. Kidd entered a guilty plea on Nov. 17, 2014, and admitted that he conspired with his co-defendants to distribute methamphetamine in Curry County. More specifically Kidd admitted that he and Tafoya supplied quantities of methamphetamine to others, including Driever and Perez, who resold the methamphetamine in smaller quantities to users. According to Kidd’s plea agreement, on Nov. 9, 2013, Kidd and Tafoya supplied a pound of methamphetamine to Driever and Perez. On that day, Kidd and Tafoya possessed another half-pound of methamphetamine at their residence. The methamphetamine was seized later that day pursuant to search warrants.
Kidd was sentenced on June 16, 2015, to 78 months in prison followed by five years of supervised release. Tafoya was sentenced on July 23, 2015, to 78 months in prison followed by five years of supervised release. Driever was sentenced on Aug. 26, 2015 to 60 months in prison followed by five years of supervised release.
This case was investigated by the Roswell Agency Office of the FBI’s Albuquerque Division, the Region V Drug Task Force and the New Mexico State Police, with assistance from the Ninth Judicial District Attorney’s Office. The Region V Drug Task Force is comprised of the Clovis Police Department, the Portales Police Department, Curry County Sheriff’s Office and the Roosevelt County Sheriff’s Office. Assistant U.S. Attorney Nicholas Jon Ganjei prosecuted the case.
Cleveland woman charged for heroin distributionRead the Press Release
A federal grand jury today returned an indictment in U.S. District Court charging Stacey R. Carlton, 36, of Cleveland, with possessing with intent to distribute approximately three kilograms of heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The Drug Enforcement Administration conducted the investigation. The case is being prosecuted by Assistant United States Attorney Marisa T. Darden.
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.
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.
Buffalo Man Pleads Guilty to Stealing MailRead 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 Michael Lamacchia, 48, of Buffalo, NY, who was convicted of theft of mail, was sentenced to one year probation by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that the defendant, who worked as a mail carrier for the U.S. Postal Service, took a letter containing New York State Safety Inspection Certificate stickers and used the stickers on vehicles owned by him or members of his family. Lamacchia did so in order to avoid having the vehicles inspected or repaired to pass inspection.
The sentencing is the culmination of an investigation by Special Agents of The United States Postal Service, Office of the Inspector General, under the direction of Monica Weyler, the New York State University Police at the University at Buffalo, under the direction of Chief Gerald Schoenle Jr., and the New York State Department of Motor Vehicles, Division of Field Investigation, under the direction of Executive Deputy Commissioner Theresa Egan.
Buffalo Man Pleads Guilty to Heroin DistributionRead 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 Raul Matos, 49, of Buffalo, NY pleaded guilty before U.S. District Judge Elizabeth A. Wolford to distributing heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on three occasions in June and July 2014, the defendant sold heroin to an individual in Buffalo.
The plea is the result of an investigation on the part of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, Buffalo Division.
Sentencing is scheduled for January 13, 2016, at 11:00 a.m. before Judge Wolford.
Brooke County, WV man charged with unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging Frank Boatrite, 42, of Follansbee, West Virginia, with unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Boatrite was previously convicted of the felony offenses of “Burglary” in the Court of Common Pleas of Clermont County, Ohio, and “Possession of Controlled Substance with Intent to Sell” in the District Court of Clark County, Nevada. As a result of these convictions, he is prohibited form possessing a firearm. He was discovered in April 2015 in possession of a .25 caliber pistol and a .22 caliber revolver.
Boatrite is charged with one count of “Prohibited Person in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government. The Hancock, Brooke, Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Brian Michael Burton Pleads Guilty to Attempted Enticement of A Minor for Illegal Sexual ActivityRead the Press Release
KNOXVILLE, Tenn.- On Oct. 7, 2015, Brian Michael Burton, 40, of Fayetteville, pleaded guilty before the Honorable Thomas A. Varlan, Chief U.S. District Judge, to attempting to entice a minor via the Internet to engage in unlawful sexual activity. Sentencing was set for Feb. 25, 2016, in U.S. District Court.
Burton faces a minimum of 10 years up to life in prison, a $250,000 fine, supervised release of five years up to life following his prison term, and asset forfeiture. He will also be required to register with the state sex offender registry in any state in which he resides, works, or attends school.
The plea agreement, signed by Burton and on file with the U.S. District Court, explains that he corresponded via the Internet with an undercover law enforcement officer about having sex with a 12-year-old male. Burton also corresponded with the undercover officer who posed as the 12-year-old male and discussed the sexual acts in which Burton wanted to engage with the minor. Burton was arrested when he arrived at a hotel where the meeting with the minor male had been arranged to take place.
This investigation was conducted by the Knoxville Police Department Internet Crimes Against Children Task Force and U.S. Homeland Security Investigations. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Ayad Al-Shaibani Sentenced in Food Stamp CaseRead the Press Release
FORT WAYNE – The United States Attorney for the Northern District of Indiana, David Capp, announces that on October 6, 2015, Ayad Al-Shaibani, 44, of Fort Wayne, Indiana was sentenced to 3 years’ probation with 6 months’ home detention and was ordered to pay $1,714,207.10 following his plea of guilty for food stamp benefits fraud.
U.S. Department of Agriculture, Office of Inspector General, Special Agent-in-Charge Anthony V. Mohatt said: The Supplemental Nutrition Assistance Program (SNAP) was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint effort in this investigation helps brings to justice individuals who sought to profit from the SNAP program through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our local law enforcement partners in order to protect the integrity of this and other USDA programs and to pursue prosecution of those who commit fraud.
According to documents filed in the case, on or about February 6, 2013, Al-Shaibani did knowingly acquire and possess United States Department of Agriculture food stamp benefits from an Electronic Benefit Transfer (EBT) Card for a transaction in excess of $100 in a manner not authorized by the Food Stamp Program. By swiping and accepting an EBT card for $128.00 from a customer for the purchase of some eligible food items (4 Energy Drink cans), Al-Shaibani violated 7 U.S.C. 2024(b)(1) .
In his plea agreement he agreed to repay restitution to the United States Department of Agriculture, Food and Nutrition Service and to forfeiture of a personal money judgment in the amount of $1,714.207.10. This sum represented the count of conviction and all relevant conduct between 2008 and 2013 for food stamp trafficking at his store, the Calhoun Market, S. Calhoun Street, Fort Wayne Indiana. Calhoun Market had been authorized in 2007 to accept Supplemental Nutrition Assistance Program (SNAP) benefits for eligible food items. The SNAP benefits were provided to eligible recipients by virtue of an electronic benefit transfer (EBT) device in Indiana called the Hoosier Works card.
This investigation was conducted by the United States Department of Agriculture, Office of Inspector General, Investigations and was assisted by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Tina Nommay.
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Assistant United States Attorney Donald R. Wolthuis Inducted into America College of Trial LawyersRead the Press Release
ROANOKE, VIRGINIA – United States Attorney Anthony P. Giorno announced today that Assistant United States Attorney Donald R. Wolthuis has been inducted as a Fellow of the American College of Trial Lawyers, one of the premier legal associations in North America.
The induction ceremony at which AUSA Wolthuis became a Fellow took place during the recent Annual Meeting of the College in Chicago, Illinois.
Founded in 1950, the College is composed of the best of the trial bar from the United States and Canada. Fellowship in the College is extended by invitation only and only after careful investigation, to those experienced trial lawyers who have mastered the art of advocacy and whose professional careers have been marked by the highest standards of ethical conduct, professionalism, civility and collegiality. Lawyers must have a minimum of fifteen years trial experience before they can be considered for Fellowship.
Donald R. Wolthuis has been an Assistant United States Attorney for the Western District of Virginia in Roanoke since 1990, where he currently serves as the Senior Litigation Counsel and the lead attorney for the Organized Crime and Drug Enforcement Task Force. Prior to joining the USAO, Mr. Wolthuis was an associate and later a partner at the law firm of Martin, Hopkins, Lemon & Carter, P.C. from 1984-1990. From 1980-1984, Mr. Wolthuis served as an Assistant Commonwealth Attorney for the City of Roanoke. He earned a B.A. in Political Science from Mary Washington College where he graduated Phi Beta Kappa. He later earned a J.D. from the College of William and Mary, Marshall-Wythe School of Law.
Membership in the College cannot exceed one percent of the total lawyer population of any state or province. There are currently approximately 5,800 members in the United States and Canada, including active Fellows, Emeritus Fellows, Judicial Fellows (whose who have ascended to the bench) and Honorary Fellows. The College strives to improve and elevate the standards of trial practice, the administration of justice and the ethics of the trial profession. Qualified lawyers are called to Fellowship in the College from all branches of practice. They are carefully selected from among those who customarily represent plaintiffs in civil cases and those who customarily represent defendants, those who prosecute individuals accused of crime and those who defend them. The College is thus able to speak with a balanced voice on important issues affecting the legal profession and the administration of justice.
Aspiring Rap Artist Charged with Producing Child Pornography in Music VideosRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Eric D. Chavis, 23, of Columbus, with conspiracy to produce and production of child pornography in an indictment returned in Columbus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, announced the indictment that was unsealed yesterday.
The indictment alleges that Chavis recruited minor victims to engage in sexually explicit conduct in his rap music videos. Chavis then posted those videos via the Internet on websites including Facebook.com, Pornhub.com, Youtube.com and Instagram.com.
Chavis is charged with one count of conspiracy to produce child pornography, and three counts of production of child pornography, each punishable by up to 30 years in prison.
Co-defendants Lamont D. Abbington, 29, of Kissimmee, Fla., Carlton S. Jackson, 30, of Toledo, and Mareekus E. Davis, 22, of Columbus, are each also charged with one count of conspiracy to produce child pornography, for their roles in recruiting, directing or engaging in sexually explicit conduct with the minor victims in the rap videos.
U.S. Attorney Stewart commended the cooperative investigation by the Central Ohio Human Trafficking Task Force, which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, and which also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), U.S. Homeland Security Investigations, Columbus Division of Police, Ohio State Highway Patrol, Powell Police Department, Federal Bureau of Investigation and the Delaware County Prosecutor's Office. Assistant U.S. Attorney Heather Hill and Special Assistant U.S. Attorney Brant Cook, director of the Ohio Attorney General’s Crimes Against Children Initiative, are representing the government in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Arizona Women’s Education and Employment Receives $1,000,000 in Federal Grant Money to Promote Community Based Reentry EffortsRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $1,000,000 in grant funds have been awarded to Arizona Women’s Education and Employment to promote effective and successful reentry into the community by those who are being released from custody. These efforts include support with housing, employment, substance abuse counseling, and mental health assistance to high risk female offenders to assist them in becoming contributing members of the community and avoiding reincarceration. The grant funds were awarded by the Bureau of Justice Assistance (“BJA”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
Additional information about BJA and its programs is available at: https://www.bja.gov/Default.aspx
Information about OJP and its programs can be found at: http://www.ojp.usdoj.gov.
RELEASE NUMBER: 2015-098_AZ_ED_EMPLY_ GRANT (2015-CY-BX-0018)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Anniversary of the Americans with Disabilities Act Highlights School Districts’ Obligation to Effectively Communicate with Those with Hearing, Vision, and Speech ImpairmentsRead the Press Release
HARRISBURG - In its ongoing effort to mark the 25th Anniversary of the Americans' with Disabilities Act (ADA), the United States Attorney’s Office for the Middle District of Pennsylvania is calling attention to the obligation of public schools to effectively communicate with individuals with hearing, vision, and speech impairments. We have sent a brochure to public schools in the Middle District reminding them of their responsibility to provide auxiliary aids and services to those that need them and to provide notification to the public on how to request those aids and services.
Under the ADA, public school districts must ensure that communication with students with hearing, vision, or speech disabilities is as effective as communication with individuals without disabilities. The obligations are not limited just to students - schools are obligated to provide effective communication to parents, relatives, guardians, and other members of the public who seek to participate in or benefit from a school district’s services, programs, or activities. This is especially true in regard to student registration, parent-teacher conferences, meetings, ceremonies, performances, open houses, and field trips.
Schools must not charge for these auxiliary aids and services and must evaluate which aids or services will provide the effective communication on an individual basis (providing primary consideration to the request of the individual with the impairment). Schools should also proactively notify parents, students, and the community about the right to effective communication, provide training to staff on the federal and state laws, and place information on the district’s public accessible website on how to request auxiliary aids and services.
The brochure describes the ADA requirements, as well as requirements of section 504 of the Rehabilitation Act, and the Individuals with Disabilities Education Act. The brochure also list helpful tips for schools and provides examples of auxiliary aids and services.
Additional information about the ADA is available at www.ada.gov, or through contacting the ADA information line at (800) 514-0301 (voice) or (800) 514-0383 (TTY).
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Amherst Man Pleads Guilty to Possession of Child PornographyRead 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 Timothy Murphy, 49, of Amherst, NY, pleaded guilty to possession of child pornography before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on October 15, 2014, law enforcement officers executed a search warrant at the Kings Highway residence of the defendant who worked as a technician for the Kenmore Tonawanda School District at the time. The officers recovered a computer being used by Murphy. A subsequent forensic examination determined that the computer contained approximately 123 images and one video of child pornography. Some of the images depicted children under the age of 12 years old. Some of the images also contain depictions of violence.
Murphy has been in custody since his arrest on April 28, 2015. Sentencing is scheduled for January 13, 2016 before Judge Wolford.
The plea is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Special Agent in Charge James C. Spero.
Albuquerque Man Sentenced to Federal Prison for Trafficking Methamphetamine in Lea CountyRead the Press Release
ALBUQUERQUE – Michael Asa Boyd, 40, of Albuquerque, N.M., was sentenced today in federal court in Las Cruces, N.M., to 60 months in prison followed by four years of supervised release for trafficking methamphetamine in Lea County, N.M.
Boyd was arrested in Hobbs, N.M., on Feb. 20, 2015, after law enforcement officers seized 174 grams of methamphetamine, 110 grams of marijuana, 70 grams of heroin, drug paraphernalia and a handgun from the vehicle Boyd was driving.
On April 27, 2015, Boyd pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering his guilty plea, Boyd admitted that on Feb. 20, 2015, officers found 174 grams of methamphetamine, 70 grams of heroin and a firearm in the rental car he was driving. Boyd also admitted that he intended to distribute the methamphetamine and heroin in Hobbs.
This case was investigated by the Las Cruces office of the DEA, the Lea County Drug Task Force and was prosecuted by Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. 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.
6 October 2015
ew Hampshire Man Sentenced to 10 Years for Three November 2014 RobberiesRead the Press Release
Concord, New Hampshire—JAMES WHINNEM, 35, formerly of Manchester and Somersworth, was sentenced today by United States District Judge Landya B. McCafferty for committing three robberies in November 2014, Acting United States Attorney Donald Feith announced. The Court imposed a term of 10 years’ imprisonment, to be followed by a 3 year term of supervised release, and ordered WHINNEM to pay restitution in the amount of $11,419.
In June 2015, WHINNEM pleaded guilty to a three count information charging him with one count of robbery affecting interstate commerce in violation of Title 18, United States Code, Section 1951, and two counts of bank robbery in violation of Title 18, United States Code, Section 2113(a).
According to court documents and statements made in court, WHINNEM robbed a gas station convenience store at knife point in Manchester, New Hampshire on November 16, 2014. Two days later, while apparently unarmed, WHINNEM then robbed a bank in Manchester by passing a demand note to the teller. Two days after that, he robbed another bank, this time in Dover, also while unarmed and by passing a demand note to the teller. Following the wide-spread publication of bank video surveillance footage on local New Hampshire news, authorities identified WHINNEM from multiple sources. New Hampshire State Police located and arrested WHINNEM on November 30, 2014 in the area of Claremont, NH. He has remained in custody on a New Hampshire state parole violation since that date.
This matter was investigated by the Federal Bureau of Investigation, the Manchester Police Department, and the Dover Police Department. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
Winchester Man Pleads Guilty to Child Pornography ChargesRead the Press Release
HARRISONBURG, VIRGINIA – A former regional chief public information officer for the U.S. Army Corps of Engineers pled guilty today in the United States District Court for the Western District of Virginia in Harrisonburg to charges related to the possession and transportation of child pornography images and videos.
Michael Steven Beeman, 62, of Winchester, Va., waived his right to be indicted and pled guilty today to a Superseding Information charging him with one count of transportation of child pornography and four counts of possession of child pornography.
In and around the late 1980s, Beeman, who at the time was employed by the United States Air Force in a public affairs position at Patrick Air Force Base in Florida, video-recorded his sexual abuse of a boy who also lived on base. This abuse, and the video images produced by Beeman remained unknown to law enforcement until shortly before his arrest.
In 2014 Beeman’s dog walker discovered images of naked minors on one of Beeman’s i-Pads. The dog walker reported these observations to the Frederick County Sheriff’s Office.
On January 14, 2014, a search warrant was executed at Beeman’s Winchester home and more than 250 electronic devices, including VHS tapes, DVDs, desktop computers, laptop computers, electronic tablets, external hard drives and thumb drives were seized. More than 50 of the items seized contained depictions of child pornography. There were thousands of images of child pornography found on Beeman’s devices. Many of the victims depicted on the defendant’s devices were found by National Center for Missing and Exploited Children to be previously identified minors.
Forensic analysis of Beeman’s devices showed that many of the child pornography images were obtained by the defendant both prior to and following the defendant’s move to Virginia in 2010.
At sentencing, Beeman faces up to 20 years in prison on each of counts one through four and up to 10 years on count five. He also faces a mandatory minimum of at least five years on count one. After his release from prison, the defendant faces a minimum of five years and as much as a lifetime of supervised release.
The investigation of the case was conducted by Mike Wagoner with the Page County Sheriff’s Office, the NOVA/DC Internet Crimes Against Children Task Force and Evidence Recovery Section, the Frederick County Sheriff’s Office, Department of Homeland Security- Homeland Security Investigations, The Virginia Attorney General’s Office- Computer Evidence Recovery Section, the Virginia State Police High Tech Crimes-Computer Recover Section, Air Force Office of Special Investigations, U.S. Army Corp of Engineers-Middle East District, U.S. Department of Justice’s Child Exploitation and Obscenity Section, High Tech Investigative Unit. Assistant United States Attorney Nancy S. Healey and Herbrina D. Sanders, a trial attorney with the U.S. Department of Justice’s Child Exploitation and Obscenity Section, will prosecute the case for the United States.
Winchester Man Admits Defrauding His Employer Out of Millions of DollarsRead the Press Release
LEXINGTON — A Winchester, Ky., man has admitted to stealing over $3 million from his former employer, Apollo Oil, LLC.
On Monday, Bradley E. Taylor, 38, pleaded guilty to wire fraud, before U.S. District Court Judge Danny C. Reeves.
Taylor, who worked as Apollo’s operations manager, admitted that he created a fictitious supplier, called BCW, LLC, and falsified purchase orders, invoices, and other shipping documents, causing Apollo to issue checks to BCW for nonexistent products. Taylor then stole the checks issued by Apollo, deposited them into a bank account he opened in the name of BCW, and converted the proceeds to his personal use.
According to the plea agreement, from 2004 to 2014, Taylor caused Apollo to issue 232 checks to BCW, totaling $3,055,422.33. Taylor personally received all of this money.
Taylor waived his right to be indicted by a grand jury, was formally charged in court, and admitted to the charges.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Howard Marshall, Special Agent in Charge, FBI, jointly announced the guilty plea.
The investigation was conducted by the FBI. Assistant U.S. Attorney Andrew Boone is prosecuting this case on behalf of the federal government.
Taylor is scheduled to be sentenced on January 27, 2016. He faces up to 20 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Wheeling man convicted of unlawfully possessing firearmRead the Press Release
WHEELING, WEST VIRGINIA – David L. Smith, 40, of Wheeling, was convicted today of being in unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Smith was previously convicted the felony offenses of “Unlawful Assault” and “Grand Larceny” in the Circuit Court of Marshall County, West Virginia. As a result of these convictions, he is prohibited from possessing a firearm. He was discovered in Ohio County, West Virginia in February 2015 in possession of a .45 caliber pistol.
Smith pled guilty today to a criminal Information charging him with one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000 on each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge James E. Seibert presided.
Wethersfield Man Sentenced to Prison Term for Involvement in Multiple Swatting IncidentsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW TOLLIS, 22, of Wethersfield, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for participating in a series of “swatting” incidents that occurred in Connecticut and other states in 2014. Judge Hall also ordered TOLLIS to perform 300 hours of community service.
Swatting is the making of a hoax call to any emergency service to elicit an emergency response based on the false report of an ongoing critical incident. Incidents typically produce the deployment of SWAT units, bomb squads, and other police units, as well as the evacuations of schools, businesses and residences.
“Swatting is not a schoolboy prank, it’s a federal crime,” said U.S. Attorney Daly. “These hoaxes have expended critical law enforcement resources and caused severe emotional distress for thousands of victims,” stated U.S. Attorney Daly. “It is our hope that this prosecution and the knowledge that this defendant will serve time in prison and live with a felony conviction for the remainder of his life will deter others from engaging in this immature, dangerous and criminal behavior.”
According to court documents and statements made in court, TOLLIS was a member of a group primarily consisting of Microsoft X-Box gamers who referred to themselves as “TCOD” (TeAM CrucifiX or Die). TOLLIS and his TCOD associates used the Internet communication service Skype to make hoax threats involving bombs, hostage taking, firearms, and mass murder. TOLLIS was identified as a participant in at least six of these swatting incidents, including a bomb threat to the UConn’s Admissions Department on April 3, 2014. This hoax call resulted in a three-hour, campus-wide lockdown and required the UConn Police and the Connecticut State Police’s Bomb Squad, Emergency Services Unit and SWAT teams to respond.
TOLLIS also participated in TCOD swatting calls to the Boston Convention and Exhibition Center, Boston University, two high schools in New Jersey and a high school in Texas. TOLLIS has admitted that he identified potential institutions, including UConn and Boston University, for TCOD members to make the threatening calls, and gathered telephone numbers and other information about the targeted institutions.
The investigation revealed that one of the founders of TCOD, a resident of Scotland who has identified himself as “Verified,” was responsible for at least five additional swatting incidents in Connecticut and Massachusetts in 2014. Other members of TCOD also reside in the U.K., and the FBI continues to coordinate its investigation with law enforcement authorities in the U.K.
TOLLIS was arrested on September 3, 2014, on state charges stemming from the UConn swatting incident, and he was arrested on a federal criminal complaint on September 10, 2014. On June 23, 2015, he waived his right to indictment and pleaded guilty to conspiring to engage in the malicious conveying of false information, namely a bomb threat hoax.
TOLLIS, who has been released on bond since shortly after his arrest, was ordered to report to prison on November 5, 2015.
This matter has been investigated by the FBI’s New Haven, Newark and Boston field offices, the UConn Police Department, the Connecticut Intelligence Center, the Willimantic Police Department, the Monroe Police Department, the Harvard University Police Department, the Boston University Police Department, the Newton (Mass.) Police Department, the Cambridge (Mass.) Police Department and other state and local law enforcement agencies.
U.S. Attorney Daly also acknowledged the critical assistance being provided by the U.S. Attorney’s Office for the District of New Jersey.
The case was prosecuted by Assistant U.S. Attorney Stephen B. Reynolds.
U.S. Task Force Report Recognizes INTERPOL's 'Crucial Global Tools' in Combating Foreign Terrorist Fighter TravelRead the Press Release
LYON, France – A US Homeland Security Committee task force report which recognizes INTERPOL’s systems as ‘crucial global tools for combating terrorist and foreign fighter travel’ has been welcomed by the world police body.
The ‘Combating terrorist and foreign fighter travel’ report, published following an extensive, six month review to assess the severity of the threat from individuals who leave home to join jihadist groups overseas and to identify potential security gaps, makes 32 key findings and accompanying recommendations.
The report states: “The closest the international community has come to centrally tracking foreign fighters is through a database created last year by INTERPOL…. Thousands of these fighters are returning home, and this database has the potential to become the global “tripwire” to detect their movements.”
With the report also highlighting how data from INTERPOL enabled US law enforcement to identify hundreds of previously unknown terrorist suspects and foreign fighters, the task force recommends ‘the US must work with international partners to designate INTERPOL as a central repository for foreign fighter identities.’
Other key recommendations include;
- The US government should make it a top diplomatic priority to ramp up foreign partner use of INTERPOL systems, including the regular provision of information to the organization’s databases, and as a screening mechanism at borders and ports of entry, especially for counterterrorism purposes.
- The Administration should consider granting State and local law enforcement the ability to quickly submit INTERPOL notices for wanted subjects in their jurisdictions. Aspiring foreign fighters often leave for the conflict zone with little or no notice, and giving state and local partners the ability to expedite notices to INTERPOL’s 190 member states could help stop extremists in their tracks on the way to terrorist safe havens, especially in cases where local authorities are tipped off to a suspect who was not previously on federal law enforcement’s radar.
Welcoming the report, INTERPOL Secretary General Jürgen Stock said its findings once again underlined the absolute necessity for countries to share information on foreign terrorist fighters.
The report was published on the same day as Secretary General Stock addressed the Leaders’ Summit on Countering ISIL and Violent Extremism on the sidelines of the United Nations (UN) General Assembly, hosted by US President Barack Obama.
The INTERPOL Chief updated the Summit on INTERPOL’s implementation of UN Security Council Resolution 2178 which recognizes the Organization’s role as a global, neutral information sharing platform against foreign terrorist fighters.
The Summit heard that with 52 countries now contributing to INTERPOL’s FTF database, information shared through its channels had increased six-fold in the last year, with some 5,000 foreign terrorist fighters identified so far in INTERPOL’s systems.The full report is available at: https://homeland.house.gov/news/reports/committee-unveils-foreign-fighter-task-forces-final-report.
Two former labor union officials charged with embezzlementRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned indictments today charging two former labor union officials with embezzlement, United States Attorney William J. Ihlenfeld, II, announced.
Former President of the United Steelworkers Local Union 05-887, James Coffey, Jr., 54, of Bergholz, Ohio, allegedly utilized a business debit card to pay for personal expenses and wrote unauthorized checks to himself from a business bank account. He is charged with two counts of “Embezzlement from a Labor Union.” He faces up to five years in prison and a fine of up to $10,000 on each of the two counts. The United States Department of Labor Office of Labor Management Standards is investigating.
Former Business Manager of the Plumbers and Steamfitters Local Union 83, Jeffrey Beresford, 55, of Cameron, West Virginia, allegedly used his position as a trustee of the Wheeling Joint Apprenticeship program to write unauthorized checks to himself from the program’s bank account. He is charged with two counts of “Embezzlement from an Employee Benefit Plan.” He faces up to five years in prison and a fine of up to $250,000 on each of the two counts. The United States Department of Labor Office of Inspector General is investigating.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney David Perri is prosecuting the cases on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Worcester Men Charged and Eight Firearms SeizedRead the Press Release
BOSTON – Two men were detained following initial appearances in U.S. District Court in Worcester today after being charged last week with illegal firearms possession.
Antwone Bennett, 21, and Darilton Matias, 21, both of Worcester, were charged in separate indictments with each being a felon in possession of a firearm or ammunition. Both defendants were detained following initial appearances before U.S. District Court Magistrate Judge David H. Hennessy.
According to the indictment, Bennett, a convicted felon, possessed four rounds of Winchester 357 MAG ammunition and two rounds of Hornady 357 MAG ammunition. On Oct. 1, 2015, Bennett was arrested on a Worcester street at which time officers recovered a loaded firearm that he was carrying. Matias, also a convicted felon, allegedly possessed a K.B.I. brand .380 caliber semi-automatic handgun. He was arrested on state charges in August 2015.
Although Bennett and Matias are not charged in relation to all of the firearms seized, in total, eight firearms were recovered during this joint operation which was initiated to combat gang violence in the Worcester area.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. If the defendants are determined to be armed career criminals, the statutes provides a mandatory minimum sentence of 15 years in prison and up to a lifetime, three years of supervised release, and a fine of $250,000. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State; Worcester Police Chief Gary J. Gemme; and Worcester County District Attorney Joseph D. Early, Jr., made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Cory Flashner of Ortiz’s Worcester Branch Office.
The details contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Sentenced for Roles in Prescription Drug Smuggling RingRead the Press Release
The Department of Justice announced today that two Athens, Texas, residents have been sentenced for their role in the smuggling of imitation, unapproved and misbranded prescription drugs from China.
Tom Giddens, 57, and Wanda Hollis, 63, were each sentenced to serve 15 months in prison by U.S. District Court Judge Michael H. Schneider in the Eastern District of Texas. In April 2015, they each pleaded guilty to one count of conspiracy to smuggle the drugs into the United States. A third defendant, Catherine Nix, 42, also of Athens, will be sentenced at a later date.
In 2009, the defendants smuggled at least 43 known shipments, totaling approximately 106,000 pills, from China to Texas. The shipments contained unapproved, bogus versions of several U.S. Food and Drug Administration (FDA)-approved drugs that, because of the health and safety risks associated with their use, require valid prescriptions to dispense. The prescription drugs seized included: Xanax®; Valium®; sibutramine; Cialis®; Viagra®; and, Stilnox®, marketed in the United States as Ambien®. None of the pills that were seized and tested were legitimate. Some were sub-potent, but most contained entirely different active ingredients from the legitimate, approved versions. The defendants also attempted to conceal their smuggling by using shipping labels that misrepresented the contents of their shipments, including customs declarations falsely describing the contents as “gifts” or “toys” with low declared monetary values, and by using multiple addresses in an effort to reduce the likelihood of seizures by U.S. Customs and Border Protection authorities.
“Consumers of prescription drugs need to know that what they are buying is legitimate, safe, and approved,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This illegal operation introduced over 100,000 bogus pills into the stream of commerce, potentially posing a huge public health and safety risk. Consumers should know that the drugs they are buying are exactly what they appear to be, and not false versions of name-brand products that could ultimately do them more harm than good.”
“This office remains committed to stemming the increasing flood of illegitimate prescription drugs that come into East Texas,” said U.S. Attorney John M. Bales of the Eastern District of Texas. “This case puts the very real, inherent dangers of counterfeit prescription drugs on full display. These pills looked almost exactly like their legitimate counterparts, but lacked any of the safety or efficacy of the legitimate versions.”
“FDA’s laws are in place to ensure that consumers have access to safe and effective prescription drugs,” said Director George M. Karavetsos of the FDA’s Office of Criminal Investigations. “Those who evade those laws risk harming the public’s health. We will continue to work with our law enforcement partners to keep the U.S. marketplace free of illegitimate medical products.”
This case was investigated by the FDA-OCI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Allen Hurst of the Eastern District of Texas and by Trial Attorney John W.M. Claud of the Civil Division’s Consumer Protection Branch.
Two Sentenced for Roles in Prescription Drug Smuggling RingRead the Press Release
TYLER, Texas - U.S. Attorney John M. Bales announced today that two Athens, Texas residents have been sentenced for their role in the smuggling of imitation, unapproved and misbranded prescription drugs from China.
Tom Giddens, 57, and Wanda Hollis, 63, were each sentenced to serve 15 months in prison by U.S. District Court Judge Michael H. Schneider. In April 2015, they each pleaded guilty to one count of conspiracy to smuggle the drugs into the United States. A third defendant, Catherine Nix, 42, also of Athens, will be sentenced at a later date.
In 2009, the defendants smuggled at least 43 known shipments, totaling approximately 106,000 pills, from China to Texas. The shipments contained unapproved, bogus versions of several U.S. Food and Drug Administration (FDA)-approved drugs that, because of the health and safety risks associated with their use, require valid prescriptions to dispense. The prescription drugs seized included: Xanax®; Valium®; sibutramine; Cialis®; Viagra®; and, Stilnox®, marketed in the United States as Ambien®. None of the pills that were seized and tested were legitimate. Some were sub-potent, but most contained entirely different active ingredients from the legitimate, approved versions. The defendants also attempted to conceal their smuggling by using shipping labels that misrepresented the contents of their shipments, including customs declarations falsely describing the contents as “gifts” or “toys” with low declared monetary values, and by using multiple addresses in an effort to reduce the likelihood of seizures by U.S. Customs and Border Protection authorities.
“Consumers of prescription drugs need to know that what they are buying is legitimate, safe, and approved,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This illegal operation introduced over 100,000 bogus pills into the stream of commerce, potentially posing a huge public health and safety risk. Consumers should know that the drugs they are buying are exactly what they appear to be, and not false versions of name-brand products that could ultimately do them more harm than good.”
“This office remains committed to stemming the increasing flood of illegitimate prescription drugs that come into East Texas,” said U.S. Attorney John M. Bales of the Eastern District of Texas. “This case puts the very real, inherent dangers of counterfeit prescription drugs on full display. These pills looked almost exactly like their legitimate counterparts, but lacked any of the safety or efficacy of the legitimate versions.”
“FDA’s laws are in place to ensure that consumers have access to safe and effective prescription drugs,” said Director George M. Karavetsos of the FDA’s Office of Criminal Investigations. “Those who evade those laws risk harming the public’s health. We will continue to work with our law enforcement partners to keep the U.S. marketplace free of illegitimate medical products.”
This case was investigated by the FDA-OCI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Allen Hurst of the Eastern District of Texas and by Trial Attorney John W.M. Claud of the Department of Justice, Civil Division’s Consumer Protection Branch.
Two Philadelphia Men Admit Roles in $5.8 Million Reloadable Debit Card Extortion ScamRead the Press Release
CAMDEN, N.J. - Two Philadelphia men today admitted their roles in a conspiracy to extort victims to load prepaid debit cards with funds that were stolen as part of the scheme, U.S. Attorney Paul J. Fishman announced.
Alpeshkumar Patel, 31, and Vijaykumar Patel, 40, each pleaded guilty before U.S. District Judge Renée Marie Bumb to separate informations charging them with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Alpeshkumar Patel and Vijaykumar Patel admitted that from September 2013 through March 2014, they were part of a conspiracy to steal money using reloadable debit cards. First, conspirators would purchase reloadable Green Dot Cards, and register them in names other than their own. The conspirators contacted victims by phone and used threats or deceit to induce them to put money on MoneyPak cards, which are used along with assigned PIN codes to add funds to Green Dot Cards.
Alpeshkumar Patel and Vijaykumar Patel admitted that they obtained the Green Dot Cards and used them to purchase money orders. Afterwards, they deposited the funds into bank accounts associated with the scheme.
Phone numbers and IP addresses connected with the conspiracy were tied to approximately 2,500 Green Dot Cards that were funded in excess of $5.8 million.
The conspiracy to commit wire fraud charge to which Alpeshkumar Patel and Vijaykumar Patel pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for Jan. 15, 2016.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the Joint Terrorism Task Force, under the direction of FBI Special Agent in Charge Richard M. Frankel in Newark, and FBI Special Agent in Charge William F. Sweeney Jr. in Philadelphia, as well as special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly in Newark, with the investigation leading to today’s pleas.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense Counsel:
Alpeshkumar Patel: Alyssa A. Cimino Esq., Fairfield, New Jersey
Vijaykumar Patel: James A. Plaisted Esq., Roseland, New Jersey
Two Grape Street Crips Members Admit Dealing Crack-Cocaine in Newark, New JerseyRead the Press Release
NEWARK, N.J. – Two members of the Grape Street Crips gang admitted their roles in a two-year conspiracy to distribute crack-cocaine in and around Newark, New Jersey, U.S. Attorney Paul J. Fishman announced today.
Monesha Johnson, a/k/a “Smoove,” 35, of Newark, New Jersey, pleaded guilty today before U.S. District Judge Jose Linares in Newark federal court to an information charging her with one count of conspiring to distribute crack-cocaine. Willie Brooks, a/k/a “Animal,” 24, also of Newark, pleaded guilty yesterday before Judge Linares to a separate information charging him with one count of conspiring to distribute crack-cocaine.
In May 2015, over the course of three weeks, 50 alleged members and associates of the Grape Street Crips were charged in criminal complaints that alleged drug-trafficking, physical assaults and witness intimidation. The charges are the result of a long-running investigation led by the DEA and FBI, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. Over the course of the entire investigation, 71 defendants have been charged with federal and state charges.
According to documents filed in this case and statements made in court:
Johnson and Brooks both admitted that between May 2013 and May 4, 2015, they conspired with others to distribute 28 grams of crack-cocaine in and around the area of 6th Avenue and North 5th Street, in Newark.
The drug distribution conspiracy charge to which Johnson and Brooks pleaded guilty carries a statutory minimum of five years in prison and maximum potential penalty of 40 years in prison. Sentencing for Johnson and Brooks is scheduled for Jan. 15, 2016 and Dec. 15, 2015, respectively.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the pleas. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their work.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris, and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel:
Johnson: Timothy Anderson Esq., Red Bank, New Jersey
Brooks: John P. McDonald Esq., Somerville, New Jersey
Two Former Anamosa Prison Correctional Officers Charged with Federal Extortion and Firearms OffensesRead the Press Release
CEDAR RAPIDS – Two former Anamosa State Penitentiary correctional officers have been charged with federal offenses, while two others will be charged in state court. The criminal activity surrounding these charges involved accepting money to smuggle cell phones into the prison for prisoner use, being unlawful drug users in possession of firearms, and possessing controlled substances. Anamosa penitentiary officials learned of this illegal activity and immediately began an investigation, enlisting the assistance of the Iowa Division of Criminal Investigation. The Federal Bureau of Investigation also joined in the investigation.
Two former correctional officers have been charged with federal crimes. Garrett Barton, age 29, from Anamosa, Iowa, has been charged by Criminal Information to one count of Hobbs Act extortion, that is taking money to smuggle cell phones into the prison for prisoner use, and to one count of being an unlawful drug user in possession of firearms. Ethan Darrow, age 29, also from Anamosa, Iowa, was also charged by Criminal Information with one count of being an unlawful drug user in possession of firearms.
In agreements with the United States, two other former correctional officers, Marques Maryland, age 38, from Cedar Rapids, Iowa, and Seth Vogel, age 28, from Marion, Iowa, have agreed to plead to state charges of possessing controlled substances. These pleas will be made in Jones County, Iowa.
United States Attorney for the Northern District of Iowa Kevin W. Techau stated, “Prison safety depends on prison personnel acting with honesty and integrity… smuggling drugs and other contraband to inmates undermine that safety and make an inherently dangerous environment more dangerous.”
In connection with this investigation, Samuel Foster, age 29, from North Liberty, Iowa, was charged by Criminal Complaint with being an unlawful drug user in possession of a firearm. He was not employed by the Anamosa State Penitentiary.
The public documents allege that in 2014, while employed as a correctional officer at the Anamosa State Penitentiary, Garrett Barton used his position to smuggle cell phones into the Penitentiary for inmates in exchange for cash payments. Cell phones are considered contraband which inmates are prohibited from possessing. In the course of investigating this activity, authorities also learned that Barton possessed firearms while being an unlawful user of marijuana and prescription controlled substances not prescribed to him. He also traded controlled substances for other controlled substances with other correctional officers. The investigation further revealed former correctional officer Ethan Darrow used controlled substances, including marijuana, cocaine, and prescription controlled substances, and used and traded drugs with Barton and other correctional officers, including Seth Vogel. Barton also conspired with his source of drugs, Samuel Foster, to sell marijuana to correctional officer Marques Maryland. Barton, Darrow, Vogel and Maryland were unlawful drug users in possession of firearms when they served guard tower duty at the prison while possessing AR-15 assault rifles.
Samuel Foster was charged by criminal Complaint filed in federal court on October 1, 2015. The Complaint alleges that in April 2015, North Liberty Police Officers executed search warrants at his residence and storage garage located in that city. Officers recovered, among other things, approximately 530 grams of marijuana, 156 hydromorphone pills (a Schedule II controlled substance), drug use paraphernalia, and a stolen .32 caliber revolver. Another search of Foster’s storage garage in Cedar Rapids, Iowa, uncovered approximately 123 grams of marijuana and a stolen .22 caliber rifle. The Complaint alleges that Foster admitted to being an unlawful user of marijuana and to selling it for between $3,200 and $3,300 per pound. The Complaint summarizes text messages between Foster and others, including Barton, regarding selling marijuana to Barton and Maryland.
As for Garrett Barton, a Criminal Information was filed on this date. He is scheduled to make his initial appearance and enter a guilty plea to both counts on October 13, 2015. Barton faces a possible maximum sentence of 30 years’ imprisonment, a $500,000 fine, $200 in special assessments, and eight years of supervised release following any imprisonment.
Ethan Darrow entered his guilty plea in federal court on October 5, 2015. Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Darrow remains free on conditions set by the court pending sentencing. Darrow faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
Marques Maryland and Seth Vogel are required by the terms of their federal agreements to enter guilty pleas to possession of controlled substances in the Iowa District Court for Jones County. Maryland and Vogel each face a possible maximum state sentence of six-months’ imprisonment and a fine of up to $1,000.
Samuel Foster appeared yesterday in federal court in Cedar Rapids and was ordered detained by Chief Magistrate Judge Jon S. Scoles pending presentation of the case to the federal grand jury. Foster faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and Special Assistant United States Attorney Erin Eldridge, and was investigated by Anamosa State Penitentiary, the Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, and North Liberty Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number for the federal court filings are: Garrett Barton (15-CR-00091); Ethan Darrow (15-CR-00090); and, Samuel Foster (15-mj-296).
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Three Ocean Shipping Executives Indicted for Fixing Prices and Rigging BidsRead the Press Release
Three former ocean freight executives have been indicted for participating in a long-running price-fixing conspiracy. These executives – Yoshiyuki Aoki, Masahiro Kato and Shunichi Kusunose – have been charged with allocating customers and routes, rigging bids and fixing prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore. The affected cargo included cars, trucks, construction equipment and agricultural equipment.
Aoki, formerly of Kawasaki Kisen Kaisha (K-Line), and Kato and Kusunose, formerly of Nippon Yusen Kabushiki Kaisha (NYK), are among seven executives who have been charged in the investigation so far. Four have pleaded guilty and been sentenced to prison. NYK, K-Line and one other company have also pleaded guilty and paid more than $136 million in criminal fines.
“The companies and executives who conspired to restrict competition and raise prices for shipping these products must be held accountable,” said Assistant Attorney General Bill Baer of the Antitrust Division. “We previously charged NYK and K-Line for their role in this long-running conspiracy. Today we are continuing our effort to ensure that the executives at those companies who orchestrated the ocean shipping conspiracy face the consequences as well.”
“These felony charges indicate to those intent on corrupting our economy they will be identified and brought to justice,” said Special Agent in Charge Kevin Perkins of the FBI’s Baltimore Division. “Our job is to protect victims who don’t see these crimes occurring, but who always end up paying the price.”
The indictment, which was returned by a grand jury in the District of Maryland, charges Aoki with participating in the conspiracy from at least as early as 2001 until at least September 2012; Kato with participating from at least as early as April 2002 until at least September 2012; and Kusunose with participating from at least as early as April 2004 until at least September 2012.
An indictment is a formal charging document and defendants are presumed innocent until proven guilty.
This investigation is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Field Office, with assistance from the U.S. Customs and Border Protection Office of Internal Affairs, Washington Field Office/Special Investigations Unit. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Baltimore Field Office at 410-265-8080.
Aoki et al Indictment (491.73 KB)
Three More Individuals Charged with Conspiring to Manufacture Marijuana in Rockford Warehouse on 11th StreetRead the Press Release
ROCKFORD — A federal grand jury in Rockford returned a superseding indictment today charging seven individuals, six men and a woman, with conspiring to manufacture, possess and distribute 1,000 or more marijuana plants. The superseding indictment charges four individuals, JEREMIAH N. CLEMENT, 37, of Des Plaines, Ill., GEORGE H. BACUS, 51, of Niles, Ill., YOUSIF Y. PIRA, 62, of Chicago, Ill., and JUSTIN T. PAGLUSCH, 33, of Ingleside, Ill., who had previously been indicted on April 21, 2015, and three additional individuals, SHLIMON SHIMON, 47, of Chicago, Ill., CASEY WILLIAMS, 28, of Great Falls, Mont., and DESTINY FREEMAN, of Palmer, Alaska. The indictment alleges that between Jan. 2, 2013, and Jan. 6, 2015, the defendants conspired to illegally grow and store marijuana in a warehouse located at 1916 11th Street in Rockford. The warehouse was destroyed by a fire on Jan. 6, 2015.
Arrest warrants were issued for Shimon, Williams and Freeman and they are still at large. Clement, Bacus and Pira were arrested in April 2015. Clement is in federal custody and Bacus and Pira were released pending trial. An arrest warrant for Paglusch was issued on April 21, 2015, and he is still at large. The ATF has offered a $5,000 reward for information leading to Paglusch’s arrest. Call ATF Tip Line – 1-888-ATF-TIPS or 1-888-283-8477.
The charge carries a mandatory minimum sentence of 10 years in prison and a maximum of life in prison and a maximum fine of $10 million. 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 is only a charge and is not evidence of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jeffery A. Magee, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Derek Bergsten, Chief of the Rockford Fire Department. The Winnebago County Sheriff’s Department Narcotics Unit and Rockford Police Department Narcotics Unit assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Superseding Indictment
Swiss Asset Management Firm Finacor SA Reaches Resolution with Justice DepartmentRead the Press Release
The Department of Justice announced today that Finacor SA, a Swiss asset management firm, has reached a resolution with the department through a non-prosecution agreement.
Finacor submitted a Letter of Intent to participate as a Category 2 bank in the department’s Swiss Bank Program. Although it was ultimately determined that Finacor was not eligible for the Swiss Bank Program due to its structure largely as an asset management firm, the firm is required under today’s agreement to fully comply with the obligations imposed under the terms of that program. Under the terms of the agreement, Finacor is required to:
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Make a complete disclosure of its 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 regarding 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 a penalty of $295,000.
Finacor 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 Finacor for tax-related criminal offenses.
“Today’s agreement reflects the department’s willingness to reach fair and appropriate resolutions with entities that come forward in a timely manner, disclose all relevant information regarding their illegal activities and cooperate fully and completely, including naming the individuals engaged in criminal conduct,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “Through the Swiss Bank Program, we have received information not just about culpable banks, but also asset management and investment advisory firms that played a role in the concealment of U.S.-related accounts and the evasion of U.S. taxes. Now is the time for these firms to come forward, accept responsibility for their actions and reach a resolution with the department.”
Finacor was established in Basel, Switzerland, in 1945, and is a corporation organized under the laws of Switzerland. It operates a small, privately-held asset management business in one office in Basel with five employees. Finacor is licensed as a broker-dealer by the Swiss Financial Market Supervisory Authority (FINMA). Although it is not a custodian bank, Finacor manages client assets held at other custodian banks.
For decades prior to and through in or about 2013, Finacor conducted a U.S. cross-border asset management business that aided and assisted U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets and income they held in these accounts. Finacor offered two types of accounts: asset management accounts and fiduciary accounts. For both types of accounts, Finacor managed client assets but held them at custodial banks in Switzerland. Initially, the majority of client funds were held by Finacor at UBS. However, after UBS notified Finacor in July 2008 that it would no longer service the accounts of U.S. citizens without an IRS Form W-9, Finacor transferred its undeclared U.S. client accounts to a Swiss Bank Program Category 2 bank.
For asset management accounts, client assets were held in the names of the clients at the custodian bank. For these accounts, the Know Your Customer rules applied to the custodian bank and not to Finacor. For fiduciary accounts, client assets were held in Finacor’s name at the custodian bank. This provided Finacor clients with an additional degree of anonymity. For these accounts, the custodian banks did not know the identity of the clients. Consequently, the Know Your Customer rules and Qualified Intermediary (QI) requirements applied to Finacor and not the custodian banks. Finacor knew that its fiduciary accounts services allowed U.S. clients to conceal their ownership of money held at its custodian banks in Switzerland from those custodian Swiss banks and, in turn, the Internal Revenue Service (IRS).
Finacor used a variety of means to assist U.S. clients in concealing their undeclared accounts, including by:
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Providing fiduciary account services that concealed the identity of its clients, including U.S. clients, from its custodian banks in Switzerland;
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Holding account-related mail at Finacor for clients, including U.S. clients, to keep mail regarding their undeclared accounts from being sent to the U.S.;
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Sending checks to the United States in amounts below $10,000 to assist clients in avoiding U.S. currency transaction reporting requirements;
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Using code words for money transfers to conceal the repatriation of undeclared assets and income back into the United States; and
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For the purpose of subverting its QI Agreement with the IRS, divesting U.S. securities from its undeclared U.S. accounts and avoiding having to disclose the identities of U.S. clients to the IRS under its QI Agreement.
Since Aug. 1, 2008, Finacor managed 11 U.S. accounts with peak aggregate assets under management of $14.6 million. The 11 U.S. accounts consisted of two asset management and nine fiduciary accounts. All of Finacor’s undeclared U.S. accounts have entered the IRS Offshore Voluntary Disclosure Program (OVDP). Moreover, Finacor obtained waivers of Swiss bank secrecy for all of its U.S. accounts and provided client names and other identifying information for those accounts to the U.S. government. Finacor has closed all of its U.S.-related fiduciary accounts or converted them to asset management accounts and intends to relinquish its broker-dealer license by the end of 2015. Without a broker-dealer license, Finacor cannot operate fiduciary accounts.
Finacor has committed to providing full cooperation to the U.S. government and has made timely and comprehensive disclosures regarding its U.S. cross-border business consistent with the Swiss Bank Program’s requirements and deadlines. Among other things, Finacor provided customer names and other identifying information for the majority of U.S. accounts as evidence that the account is participating in the OVDP or declared to the IRS, as well as for use in other potential department investigations. Finacor also provided the name and information of the relationship manager primarily responsible for servicing U.S. clients and the external asset manager who managed several of Finacor’s U.S. client accounts, in satisfaction of the Swiss Bank Program requirements.
“Agreements like that with Finacor SA redefine international tax compliance initiatives and have far-reaching, global implications,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “The American public can expect that we will use all of the information we are gathering to vigorously pursue individual U.S. taxpayers who illegally conceal assets offshore and to develop innovative strategies to combat international tax evasion worldwide.”
Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-CI and the IRS Large Business & International Division for their substantial assistance. Ciraolo also thanked Kevin F. Sweeney, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Supervised Release Revoked for Former Kankakee County Board Member, Pembroke Township SupervisorRead the Press Release
Peoria, Ill. - Supervised release for former Kankakee County Board member and Pembroke Township Supervisor Larry Dean Gibbs was revoked at a hearing on Friday, Oct. 2, 2015, before Chief U.S. District Judge James E. Shadid in Peoria. Gibbs, 54, was sentenced to serve nine months in federal prison after pleading guilty to violating terms of his supervised release. Judge Shadid ordered that Gibbs report to the federal Bureau of Prisons on Nov. 2, 2015, to begin serving the sentence.
Gibbs was serving a one-year term of supervised release following completion of his prison sentence for filing a false income tax return when a petition to revoke his supervised release was filed on June 4, 2015. Gibbs was sentenced on May 8, 2013, to 18 months in federal prison and ordered to pay restitution in the amount of $66,282 to the IRS, after pleading guilty to filing a false tax return for the 2005 tax year.
During the court hearing on Oct. 2, Gibbs admitted that he violated his supervised release when he traveled to Minnesota on May 22, 2015, without the prior permission of his probation officer, and that he failed to report that he had been arrested for various traffic violations in Woodbury, Minn.
On June 3, 2015, Gibbs filed a document in U.S. District Court in Urbana to advise the court that Larry Dean Gibbs was “deceased and cannot speak, or appear.” The notice further stated that “further information must be referred to Minister Mulumbua Humraukn El Taikaem Bey, Executor.” In a document filed in Kankakee County Circuit Court on Apr. 30, 2015, an order for Change of Name was entered by Judge Ronald Gerts to change Gibbs’ name from Larry Dean Gibbs to Mulumbua Humraukn El, Taikaem Bey.
The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Stamford Podiatrist Pleads Guilty to Submitting False Medicare Claims, Also Pays 288K in Civil SettlementRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that AMIRA MANTOURA, 53, of Greenwich, waived her right to indictment and pleaded guilty yesterday in Hartford federal court to one count of making a false statement to the Medicare program. In pleading guilty, MANTOURA, a Stamford-based podiatrist, admitted that she submitted false claims to Medicare, Medicaid and private insurance companies.
According to court documents and statements made in court, MANTOURA, a Doctor of Podiatric Medicine, operates a podiatry practice at 95 Morgan Street in Stamford. As a podiatrist, she was fully aware and understood the procedure to perform a “nail avulsion” and she understood that a nail avulsion was a surgical procedure to treat an ingrown toenail. Between January 2009 and August 2013, MANTOURA knowingly submitted materially false claims to the Medicare program and to private insurance companies to obtain payment for a nail avulsion when defendant knew that she had not performed a nail avulsion. Rather than perform a nail avulsion, in most of these instances MANTOURA had merely provided her patients with routine foot care including clipping the patients’ toenails.
As a result of submitting false claims to the Medicare and Medicaid programs and private insurance companies, MANTOURA was paid approximately $195,000.
MANTOURA is scheduled to be sentenced by U.S. District Judge Michael P. Shea on December 28, 2015, at which time she faces a maximum term of imprisonment of five years, a maximum fine of more than $380,000 and an order of restitution.
In a related civil settlement, MANTOURA has paid $288,538.24 to the government in connection with her submission of false claims to the Medicare and Medicaid program. On October 1, 2015, MANTOURA was excluded from the Medicare program and will no longer be permitted to submit federal health care claims.
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Senior Litigation Counsel Richard J. Schechter, and the civil settlement was handled by Assistant U.S. Attorney Anne F. Thidemann.
U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or. 1-800-HHS-TIPS.
Sister and brother pair indicted in bankruptcy fraud schemeRead the Press Release
Evansville – United States Attorney Josh Minkler announced today, Patricia Bippus-Allen, 56, and her brother David Bippus, 66, both of Evansville were indicted on multiple counts relating to a bankruptcy fraud scheme.
“Using the bankruptcy system and government resources to further one’s own selfish and fraudulent scheme will not be tolerated,” said Minkler. “If you intentionally waste the government’s limited judicial resources, you will be held strictly accountable.”
In September 2010, Bippus-Allen filed a joint chapter 13 petition in both her and her husband’s name in United States Bankruptcy Court for the Southern District of Indiana. This was done without her husband’s consent, knowledge or authorization. During the course of the bankruptcy, Bippus-Allen created several documents with a forged signature of her husband of over 25 years.
Bippus-Allen also provided her bankruptcy attorney with a letter from a doctor stating her husband was under his care and would be in the hospital for at least 30 days and could not see visitors or take phone calls. The doctor who purportedly signed the letter stated it was a forgery and that he had never provided services for her husband.
In March 2011, Bippus-Allen attended a 341 meeting of creditors at which her husband was required to attend as well. David Bippus, her brother, attended the meeting with Bippus-Allen and posed as Bippus-Allen’s husband. Bippus-Allen and David Bippus both stated under oath that he was the husband and that all schedules and documents filed in the bankruptcy were true and correct.
Based on the representations made by Bippus-Allen and David Bippus, a bankruptcy plan was confirmed requiring monthly payments for 60 months. Pursuant to this plan, approximately $74,000 was deducted from the paychecks of Bippus-Allen’s husband without his consent or knowledge.
Further, Bippus-Allen was charged with several counts of wire fraud for transferring money from her husband’s 401 (k) account without his consent, knowledge, or authorization. Bippus-Allen made multiple calls to the 401(k) service center purporting to be her husband while also faxing supporting documentation to the service center for the 401(k) hardship withdrawal. The supporting documentation included records purportedly from a dental office which were determined to not be genuine business records.
This investigation was conducted by the Federal Bureau of Investigation and the Bankruptcy Fraud Working Group.
“I am grateful to U.S. Attorney Minkler and our law enforcement partners for their strong commitment to combating fraud and abuse in the bankruptcy system as evidenced by the charges announced today, “ stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois and Southern Illinois (Region 10).
According to Assistant United States Attorneys Kyle M. Sawa and Todd Shellenbarger, who are prosecuting this case for the government, Bippus-Allen could face decades in prison if convicted on all counts. David Bippus faces up to five years on each count if convicted.
An indictment is only a charge and all defendants are innocent until proven guilty beyond a reasonable doubt in federal court.
Seagoville Inmate Who Possessed a Coloring Book Containing Obscene Visual Representations of the Sexual Abuse of Children is Sentenced to 10 Years in Federal PrisonRead the Press Release
DALLAS — An inmate who admitted possessing obscene visual representations of the sexual abuse of children while he was incarcerated at Seagoville Federal Correctional Institute (FCI) was sentenced yesterday, announced U.S. Attorney John Parker of the Northern District of Texas.
Danny Borgos, 27, formerly of Nyack, New York, was sentenced by U.S. District Judge David C. Godbey to 10 years in federal prison. He was in Seagoville FCI serving a federal prison sentence for a federal conviction in the Southern District of New York for receiving, distributing and possessing child pornography.
According to documents filed in the case, on October 9, 2014, a Bureau of Prisons (BOP) guard found Borgos with a paginated series of drawings, consisting of 37 pages in a comic or coloring book-style format, depicting obscene representations of minors engaged in sexually explicit conduct. Borgos admitted the depictions belonged to him
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI, with assistance from the BOP, investigated. Assistant U.S. Attorney Camille Sparks prosecuted the case.
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Rochester Man Sentenced for Enticing A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Roger Eric Powell, 48, of Rochester, NY, who was convicted of enticement of a minor using a means and facility of interstate commerce, was sentenced to 10 years in prison and 30 years of supervised release by U.S. District Judge Elizabeth Wolford.Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that between January 2014 and January 2015, Powell used the Internet and a cellular telephone to communicate with a female who was under the age of 14 to entice the minor to engage in sexual activity with him. Specifically, the defendant used Facebook messenger to engage in sexually explicit chats with the minor. The communications led to Powell meeting with the minor to engage in sexual activity.
The sentencing is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Richmond Man Convicted of Stealing Social Security Survivors’ BenefitsRead the Press Release
RICHMOND, Va. – Marcel Kiza, 58, of Richmond, was convicted today by a federal jury on charges of theft of government property.
Kiza was indicted on March 18, 2015. According to court records and evidence at trial, Kiza fraudulently obtained over $50,000 in Child’s Insurance Benefits as a representative payee under the name Marcel Kiza for two children whom he represented to be his deceased brother’s children. Evidence at trial showed that Kiza did not have a deceased brother, and that he created two identities in order to fraudulently receive Survivors’ Benefits for his own children. Evidence at trial showed that Kiza had originally entered the country under the name Amuri Ntambwe Kiza, until 2007 when he became a citizen and legally changed his name to Marcel Joshua Kiza. The government presented social security applications, customs and immigration documents, and a legal name-change petition. These documents showed the defendant using the same identifiers and, at times, both names. Additionally, a fingerprint examiner testified that a fingerprint impression taken in 2002 from Amuri matched a 2013 fingerprint taken from Marcel, and both of those fingerprints matched Kiza’s current fingerprint impressions.
Kiza faces a maximum penalty of 10 years in prison when sentenced on Jan. 7, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Rod Owens, Resident Agent-in-Charge, Social Security Administration, Office of Inspector General, made the announcement after the verdict was accepted by U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Heather L. Hart and Special Assistant United States Attorney Margaret Reed are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-CR-46.
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Rhode Island Man Charged with Trafficking in Counterfeit Erectile Dysfunction MedicationRead the Press Release
BOSTON – A Pawtucket, R.I. man was charged today in U.S. District Court in Boston with trafficking in counterfeit drugs.
Ricky Lugo, 48, was charged in an Information with four counts of trafficking in counterfeit versions of erectile dysfunction medications, including Pfizer Inc.’s Viagra, Eli Lilly’s Cialis, and Bayer’s Levitra.
“The trafficking of counterfeit goods generates billions of dollars in the wallets of copycats and thieves,” said United States Attorney Carmen M. Ortiz. “Not only does it violate the trademarks that are intended to protect our nation’s intellectual property, but it also endangers people’s health and has the potential to inflict lasting harm.”
“Importing, selling or purchasing counterfeit products is not a victimless crime,” said Matthew Etre, Special Agent in Charge of HSI Boston. “Counterfeit pharmaceuticals present an even greater concern to businesses and consumers alike. Americans need to be able to trust the medications they ingest and Homeland Security Investigations will continue to work with our law enforcement partners to ensure the safety and security of the products consumers buy.”
“Counterfeit drugs are illegal. As with any other illegal drug, Postal Inspectors are committed to keeping them out of the U.S. Mail,” stated Acting Postal Inspector in Charge James V. Buthorn. “Counterfeit medications pose a serious threat to the American public ranging from grave health consequences to lack of efficacy. The men and women of the Postal Inspection Service work relentlessly to remove illegal drugs from the mail while bringing criminals who use the Postal Service to facilitate their crimes to justice.”
According to court documents, from June 2013 to March 2014, Lugo sold counterfeit Viagra, Cialis, and Levitra on Craigslist and in person. Lugo purchased the counterfeit pharmaceuticals from sources outside the United States, including from China. Lugo knew that the goods he was selling were counterfeit, but nonetheless sold and attempted to sell thousands of the tablets.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $5 million 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.
U.S. Attorney Ortiz, HSI SAC Etre and Acting Postal Inspector Buthorn, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Readout of Assistant Attorney General for National Security John P. Carlin’s Address at Vanity Fair’s 2015 New Establishment SummitRead the Press Release
Today at Vanity Fair’s 2015 New Establishment Summit, Assistant Attorney General for National Security John P. Carlin and CEO of Sony Entertainment Michael Lynton had a moderated conversation with the President and CEO of the Aspen Institute, Walter Isaacson. They highlighted the growing threat posed by sophisticated computer intrusions to the entertainment industry and the economy at large, discussed the role the federal government can play in protecting companies before, during and after a serious hack and emphasized the importance of public-private partnerships to cybersecurity.
This was the first time that Carlin and Lynton were together on stage to discuss the unprecedented, state-sponsored network intrusion of Sony Pictures Entertainment in November 2014. Carlin and Lynton recounted the story of the hack and highlighted Sony’s valuable cooperation with law enforcement. They emphasized the role that public-private partnerships play in averting cyber hacks and mitigating their damage. Carlin said that Sony’s willingness to involve law enforcement immediately was “an important lesson that Sony did right.” “Literally within hours of the original breach – within the first 24 hours – Sony reached out and the FBI had a team go to Sony to assist,” Carlin added.
Carlin took this opportunity to stress the value of reaching out to law enforcement and making a connection early, before an intrusion takes place. “The reason [Sony] knew who to call is that they had a relationship where a high-level executive knew by name and by a face” their law enforcement contact.
To this end, Carlin announced an NSD outreach initiative to promote information sharing and resilience, as well as to help private companies protect themselves and respond to cyber intrusions. “In large part because of incidents like Sony, we’ve started a new outreach program,” Carlin said, “so that we are reaching out, preventively, to talk to people about best practices and what to think about before the attack happens.” Carlin highlighted that NSD recently named the first Director of the Outreach Program for the Protection of National Assets, Christine Kringer. This new position is the latest in a series of structural changes at NSD designed to reflect the division’s prioritization of combating cyber threats to the national security, as well as its counterintelligence and counterproliferation efforts. Last year, NSD charged a new Deputy Assistant Attorney General with oversight and coordination of the division’s protection of national assets program.
This focus on outreach complements the Justice Department’s national network of specially-trained National Security Cyber Specialists, and Computer Hacking and Intellectual Property coordinators who are available 24/7 to support companies as they face intrusions and online threats from a variety of sources in real-time.
Over the past 18 months, the Department of Justice has prioritized outreach efforts on cyber threats and cybersecurity, hosting discussions with the financial services sector in New York, addressing the Gaming Association in Las Vegas and conducting outreach to insurance companies, national labs, universities and the energy and transportation sectors. Through these efforts, Carlin and other senior Department of Justice officials have met with hundreds of c-suite executives, CIOs and CISOs, general counsels, outside lawyers and other corporate representatives to discuss the unique challenges companies face in today’s elevated threat environment.
Furthermore, the National Security Division continues to partner with the Criminal Division, the FBI and U.S. Attorney’s Offices to make joint visits and to participate in roundtables with companies to answer questions from both corporate security teams and in-house legal counsel. Carlin noted that the department is working to dispel the perception that law enforcement “comes in and seizes your servers,” and to show instead that they are “there to help and they very much respect the need of the business to get back to doing what it does.”
He closed his remarks by underscoring the Department of Justice’s commitment to overcoming perceived hurdles to cooperation and his own pledge to be responsive to the needs of private sector partners, whether they simply want to establish early lines of communication or call while under the strain of a continuing network breach.
Project Safe Childhood Initiative to Visit Frontier Regional SchoolRead the Press Release
BOSTON – On Wednesday, October 7th, students in the Frontier Regional School District will be participating in an assembly titled: Project Safe Childhood, presented by the Department of Justice.
The presentation will include a variety of Internet safety topics including: digital footprints; cyberbullying; sextortion; Internet predators; and being safe and secure online. Presenters include members of the United States Attorney’s Office as well as federal agents from the Department of Homeland Security and the Federal Bureau of Investigation.
A special presentation about keeping kids safe and secure online will be held for parents and educators at 6:00 p.m. on Wednesday evening in the Frontier Regional School auditorium.
In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/
Physician Found Guilty of 82 CountsRead the Press Release
SAN JUAN, P.R. – On Monday, October 5, 2015, Aníbal Pagán-Romero, a general practitioner with a clinic in Quebradillas, Puerto Rico, was found guilty on all counts of an 82 count indictment charging 21 conspiracies and 61 individual counts of mail fraud from a scheme to defraud the American Life Assurance Company of Columbus, Georgia, better known as AFLAC. This conviction is the result of a lengthy investigation undertaken by the Federal Bureau of Investigations into multiple insurance fraud schemes in the Western region of Puerto Rico which resulted in the arrest and prosecution of hundreds of individuals.
Pagán-Romero was charged with 35 patients for perpetrating a scheme where he fraudulently signed AFLAC accidental insurance claim forms without examining the patients. The evidence presented at trial showed that from 2004 through 2009 Pagán-Romero caused an approximate loss of $2,000,000 to AFLAC through the claim forms filed with the other 35 co-defendants and approximate loss of $6,000,000 for all the AFLAC claim forms filed under Pagán-Romero’s signature. The 35 patients who were charged alongside Pagán-Romero had pled guilty to the charges prior to the commencement of trial.
The three-week trial before the Hon. Gustavo Gelpí included the testimony of three of the doctor’s employees and four patients who indicated that Pagán-Romero personally instructed them to submit the documents for his signature without examination. The evidence also showed that the scheme had grown so large and lucrative that Pagán-Romero had to hire two employees to do data entry full time in order to generate the thousands of AFLAC claim forms submitted for reimbursement under his signature. The evidence presented at trial revealed that Pagán-Romero would have been capable of pocketing $975,000 in cash during the five year conspiracy for signing the AFLAC claim forms at $10 per form.
Pagán-Romero is exposed to a term of imprisonment of up to 20 years for his crimes. The sentencing hearing is scheduled for January 19, 2016 and the defendant was remanded to the custody of the U.S. Marshals.
“This conviction marks yet another victory in our fight against fraud in Puerto Rico. I thank our team of prosecutors and our federal law enforcement partners for the teamwork they showed in leading us to a successful outcome today,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The case was prosecuted by Assistant United States Attorneys Dennise N. Longo and Julia Díaz-Rex.
Palmetto man pleads guilty to cocaine distribution conspiracyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Palmetto man pleaded guilty Monday to his role in a conspiracy to distribute cocaine in St. Landry Parish.
Steven Paul Banks, 47, of Palmetto, La., entered a conditional guilty plea to one count of conspiracy to distribute more than 500 grams of cocaine and more than 28 grams of cocaine base before U.S. Magistrate Judge Patrick Hanna. The plea will become final when accepted by U.S. District Court Judge Richard T. Haik. According to evidence presented at the guilty plea, law enforcement agents recorded Banks and other co-conspirators from September to August of 2013 negotiating the purchase of cocaine for later sale in Melville, La.
Banks faces five to 40 years in prison, four to five years of supervised release and a $5 million fine. A sentencing date was not set.
The DEA conducted the investigation. Assistant U.S. Attorneys Howard C. Parker and Robert F. Moore are prosecuting the case.
Officer of Country Bancorporation Pleads Guilty to Stealing more than $800,000 from Banks Controlled by the CompanyRead the Press Release
An officer of Country Bancorporation who embezzled more than $800,000 from banks controlled by the company pled guilty today in federal court in Cedar Rapids.
Heidi Wagler, age 50, from Wayland, Iowa, was convicted of one count of embezzlement by a bank officer.
In a plea agreement, Wagler admitted that from June 2004 through October 2013, while she was an officer of Country Bancorporation, she embezzled at least $864,835 from the company. At the time Wagler was an officer of Country Bancorporation. The company controlled seven banks and Wagler was in charge of doing payroll for each of these banks. She was also a member of the Board of Directors of one of the banks and her husband, Russell Wagler, was the Director, President, and CEO of that same bank. Wagler further admitted that, although she was entitled to compensation from Country Bancorporation for doing the payroll for its banks, she paid herself excess compensation from each of the seven banks at various times over the course of her embezzlement. She also admitted that, from January 2008 through November 2013, she paid her husband additional compensation to which he was not entitled.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Wagler remains free on conditions of release set by the court pending sentencing. She faces a possible maximum sentence of 30 years’ imprisonment, a fine of up to twice the loss resulting from her offense, a $100 special assessment, and five years of supervised release following any imprisonment. Wagler could also be ordered to pay restitution to any victims.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the FBI and FDIC.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-00089.
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Oak Hill man sentenced to more than a year in Federal child pornography chargesRead the Press Release
CHARLESTON, W. Va. - United States Attorney Booth Goodwin announced that William A. Cracraft, 52, of Oak Hill, West Virginia was sentenced to twelve months and one day in federal prison for Possession of Child Pornography. Cracraft’s incarceration will be followed by 25 years of supervised release, and he will be required to register as a sex offender. As part of his plea agreement, Cracraft agreed to forfeit his computers and cell phones that contained child pornography for destruction. He was ordered to pay restitution in the amount of $18,500 to victims of his crime.
The investigation established that Cracraft was in possession of more than 600 photographs and videos of child pornography on his computers and cell phones, including sexually explicit depictions of prepubescent minors. Some of the images showed sadistic or masochistic conduct, while others depicted violence toward the minor children.
The Department of Homeland Security and the West Virginia State Police conducted the investigation. Assistant United States Attorney Erik S. Goes was responsible for the prosecution.
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 http://www.justice.gov/usao/wvs/PSCpage.html.
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Nine Individuals Indicted for Bank FraudRead the Press Release
SAN JUAN, Puerto Rico– Nine individuals have been indicted for their alleged participation in a conspiracy to commit bank fraud, bank fraud, access devices fraud, and/or aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The United States Secret Service is in charge of the investigation. The indictment was unsealed today upon the arrest of the defendants.
The indictment, returned on October 1st, 2015 by a federal grand jury in the District of Puerto Rico, includes sixteen charges against the following individuals: Carlos Bauzó-Vázquez, aka “Carlitos;” Lesville Matos-Bauzó, aka “Billy;” Gloria Bauzó-Vázquez, aka “Milagritos;” Henry Pérez-Díaz; Laydy Mar Feliciano-Miranda; Héctor Vega-Rivera, aka “El Gringo;” José Díaz-Caraballo, aka “Timana;” David González-Ferrer; and Rafael González-Ferrer.
These charges stem from a scheme utilized by the defendants from approximately July 2014 to April 2015 to provide false employment, income, and residency information to Banco Popular de Puerto Rico in order to receive multiple personal loans and lines of credit. A member of the group would call Banco Popular’s Telebanco Popular service and request a loan using the name, birth date, and social security number of another defendant. During the course of the call, false information would be provided to the bank regarding where the person lived and worked. Further, false information would be provided regarding the person’s income.
Once the requested loan was approved pending the submission of supporting documentation, defendants would take false documents to the bank as evidence of the information provided via telephone. In particular, the defendants utilized fictitious companies and falsified payroll documents in support of the loan requests. Defendants would then cash the loan checks and distribute the cash to members of the conspiracy. This scheme was repeated multiple times. On at least one occasion, credit cards were requested using the same information and documentation fraudulently submitted to the bank for the loan. Members of the conspiracy then made cash advance withdrawals from bank branches and Automated Teller Machines (ATM’s).
The indictment alleges one count of conspiracy to commit bank fraud, a violation of Title 18, United States Code, Sections 1349 and 1344; nine counts of bank fraud, a violation of Title 18, United States Code, Section 1344, related to loan checks or cash advances fraudulently obtained from the bank; five counts of aggravated identity theft, of a violation of Title 18, United States Code, Section 1028A(a)(1), related to the possession and use without lawful authority of a means of identification in relation to bank fraud charged in the indictment; and one count of access devices fraud, a violation of Title 18, United States Code, Section 1029(a)(2), related to the use of unauthorized access devices, credit cards, obtained with intent to defraud. The total value of the fraud was approximately $92,600.
If found guilty, defendants face a maximum penalty of thirty years in prison for conspiracy to commit bank fraud and bank fraud, ten years in prison for access devises fraud, and a mandatory two year consecutive term in prison for aggravated identity theft.
The case is being investigated by the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Seth Erbe.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
New York man charged with credit card fraudRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned an indictment today charging Charles Manu, 23, of Bronx, New York, with credit card fraud, United States Attorney William J. Ihlenfeld, II, announced.
Manu was discovered in June 2015 in possession of multiple credit cards and gift cards that had been unlawfully recoded or reprogrammed with new account information. He is charged with one count of “Possession of Unauthorized Access Device.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri is prosecuting the case on behalf of the government. The West Virginia State Police and the United States Secret Service are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Monroe County Man Sentenced to 41 Months in Prison for Federal Methamphetamine Trafficking ChargeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man was sentenced today to 41 months’ imprisonment by Senior United States District Judge Edwin M. Kosik for participating in a methamphetamine trafficking conspiracy.
According to United States Attorney Peter Smith, Emmanuel Tucker, age 39, of Stroudsburg, Monroe County, pleaded guilty in May 2015 to the charge of conspiracy to distribute methamphetamine.
Tucker was one of seven individuals indicted by a federal grand jury in April 2014 after a several month investigation conducted jointly by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the Stroud Regional Police Department regarding methamphetamine trafficking in Monroe County.
Previously, Scott Borushak, age 51, of Stroudsburg, and Fred Baumgartner, age 34, of Kresgeville, pleaded guilty and admitted to participating in the same methamphetamine trafficking conspiracy. The charges against the remaining defendants are currently pending.
In addition to the prison term, Senior Judge Kosik also ordered that Tucker be supervised by a probation officer for three years following his release from prison.
The cases are being prosecuted by Assistant United States Attorney Robert J. O’Hara.
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Mexican national pleads guilty to lying on passport applicationRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Mexican national pleaded guilty Monday to submitting false information when applying for a passport.
Federico Vargas Mares, 28, of Mexico, entered a conditional guilty plea for one count of false statement on a passport application before U.S. Magistrate Judge Patrick Hanna. The plea will become final when accepted by U.S. District Judge Richard T. Haik. According to the guilty plea, Mares filed an application at the Iberia Parish Clerk of Court in New Iberia, La., on May 17, 2013 under a different name. He also listed his home of origin as Puerto Rico instead of Mexico. After further investigation, it was discovered that the defendant had multiple immigration-related arrests and was charged with smuggling aliens in January of 2006. He was removed from the United States in October of 2007 and was barred from returning.
Mares faces 10 years in prison, three years of supervised release and a $250,000 fine. A sentencing date was not set.
Homeland Security Investigations and the Diplomatic Security Service conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.