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Wednesday 19 August 2015
Local, State and Federal Law Enforcement Cooperation Leads to Indictments of Four Alleged Armed Drug-Dealers in Luzerne CountyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that, as the result of ongoing cooperation among local, state and federal law enforcement agencies, indictments were returned late yesterday by a grand jury in Scranton charging four men in separate cases with possession of firearms in connection with drug-dealing activity in Luzerne County communities.
The charges were part of an ongoing cooperative effort by federal, state and local law enforcement against violent crime in Luzerne County.
According to United States Attorney Peter Smith, on February 4, 2015, Jeffery Stevens, 32, of Wilkes-Barre, Pennsylvania, was arrested by agents of the Pennsylvania Attorney General’s Bureau of Narcotics Investigations following an alleged heroin transaction at a hotel room in Plains Township. At the time of his arrest, the defendant was allegedly in possession of heroin, a .380 semi-automatic pistol with an obliterated serial number, a 9mm semi-automatic pistol with an obliterated serial number, a .357 revolver, 135 rounds of ammunition and $1,410 in United States currency.
On June 12, 2015, Dennis Couvertier, 43, of Luzerne, was arrested by Kingston Police detectives allegedly following the third of three cocaine transactions that took place between June 3 and June 12. At the time of his arrest, Couvertier was allegedly in possession of a .45 caliber semi-automatic pistol, a 9 mm semi-automatic pistol, 43 rounds of ammunition and $2,916 in United States currency.
On July 11, 2015, Joshua Harris, 26, of Newark, New Jersey, was arrested for allegedly distributing marijuana and possessing marijuana with the intent to distribute it following a routine traffic stop by the Edwardsville Police. At the time of his arrest, Harris—an alleged felon who is not permitted to possess firearms—was allegedly in possession of a Chinese assault-style rifle with 30-round magazines, 50 rounds of ammunition and $669 in United States currency.
The investigation of these cases was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives working in conjunction with the Attorney General’s Bureau of Narcotics Investigations, the Kingston Police and the Edwardsville Police. Prosecution is assigned to Assistant United States Attorney Peter Hobart.
A fourth Indictment charges Aaron Bangaroo, age 35, of Kingston, with possession with intent to distribute heroin and cocaine, two counts of distribution of heroin, possession of firearms in furtherance of a drug trafficking crime, and being a convicted felon in possession of firearms.
The charges stem from an investigation in which police made two purchases of heroin from Bangaroo and then obtained a search warrant for Bangaroo’s residence, located on South Gates Avenue in Kingston, and seized heroin, cocaine, two firearms and ammunition from a bedroom in the residence.
The investigation was conducted by the Kingston Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF). Prosecution is assigned to Assistant United States Attorney Robert J. O’Hara.
Couvertier faces a minimum term of 5 years and up to life imprisonment as well as fines totaling $1,250,000. Harris faces a minimum term of 5 years and up to life imprisonment as well as fines totaling $500,000. Stevens faces a minimum term of 5 years and up to life imprisonment as well as fines totaling $1,500,000. Bangaroo faces a minimum term of 5 years and up to life imprisonment as well as a $250,000 fine.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lithia, Georgia, Man Sentenced to 40 Months, $148,000 Restitution for Possession of Counterfeit SecuritiesRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that TORY DERREL LARKINS, age 30, of Lithia, Georgia, was sentenced to 40 months imprisonment, followed by 36 months of supervised release for POSSESSION OF COUNTERFEIT SECURITIES, in violation of Title 18, United States Code, Section 513(a). The defendant was also ordered to pay $148,975.03 in restitution.
The charge arose from an investigation by the Oklahoma Highway Patrol and the United States Secret Service. The defendant pled guilty in April, 2015.
The Indictment alleges that on or about October 9, 2014, within the Eastern District of Oklahoma, TORY DERREL LARKINS, defendant herein, knowingly possessed counterfeit securities, to wit: counterfeit checks purported to be genuine checks of MTW Creations, LLC, drawn on an account at Bank of America, an organization which operates in interstate commerce, with intent to deceive another.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Rob Wallace represented the United States.
Lindsey Man Sentenced to 15 Months, $81,000 Restitution for Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CODY DILLON CORDELL, age 27, of Lindsey, Oklahoma, was sentenced to 15 months imprisonment, followed by 3 years of supervised release for WIRE FRAUD, in violation of Title 18, United States Code, Section 1343. The defendant was also ordered to pay $81,343.24 in restitution.
The charges arose from an investigation by the Federal Bureau of Investigation. The defendant pled guilty in April, 2015.
The Information alleged that on or about March 13, 2013 to on or about March 15, 2013, within the Eastern District of Oklahoma and elsewhere, the defendant, CODY DILLON CORDELL devised and intended to devise a scheme and artifice to defraud Action Petroleum Services Corp. to obtain money and property by means of materially false and fraudulent pretenses, representations and promises.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
First Assistant United States Attorney Doug Horn represented the United States.
Kenner Man Pleads Guilty to Possessing Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STEVEN GAETA, age 41, of Kenner, pled guilty today to a one-count Bill of Information for crimes involving the possession of child pornography.
According to court records, on November 25, 2014, Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) executed a federal search warrant at GAETA’s Kenner home. HSI agents determined Gaeta used Peer to Peer file sharing programs to possess approximately 120 videos and 500 images depicting the sexual victimization of children.
GAETA faces a maximum penalty of twenty years, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender pursuant to the Sex Offender Registration Notification Act. U.S. District Judge Kurt D. Engelhardt set sentencing for November 18, 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Jury Finds Chicago Man Guilty of Knowingly Transporting a Minor with Intent to Engage in Sexual ActivityRead the Press Release
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that David S. Duffin, age 44, of Chicago, Illinois, was found guilty on one count of Knowingly Transporting a Minor in Interstate Commerce with Intent to Engage in Sexual Activity following a three day jury trial in Fayetteville. The Honorable Timothy L. Brooks presided.
U.S. Attorney Eldridge stated, “This defendant used the internet to target a child, abducted her, and sexually abused her while traveling through several states. This conduct is frightening, and today he has been held accountable. We thank the jury for their attention to this case, as well as the team of law enforcement and prosecutors for their work. Those who seek out and prey on children threaten the core of our communities. I am proud of the work we have done prosecuting defendants such as this, and we should continue to remain focused on this horrific criminal activity.”
According to evidence presented at the trial, on April 4, 2015, a 13-year-old female was reported missing from her home in Chicago, Illinois. The Chicago Police Department later developed evidence that the minor was with the defendant, David Duffin, who had driven her from her home in Chicago, to a motel in Bentonville, Arkansas. On April 9, 2015, the Benton County Sheriffs’ Department located Duffin and the minor in Benton County. After being interviewed at the Benton County Sherriff’s department, Duffin admitted to meeting the minor by pretending to be a teenage boy online, and then engaging in sexual intercourse with the minor both in Chicago and later after bringing her to Arkansas.
Duffin was indicted by a Federal Grand Jury on June 3, 2015. Sentencing will be held at a later date. The maximum penalty is not less than 10 years imprisonment or for life, not more than $250,000.00 fine, or both. 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 violations.
This case was investigated by the Federal Bureau of Investigation (FBI), the Benton County Sheriff’s Office, and the Chicago Police Department. Assistant United States Attorney Kyra Jenner and Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Jury Convicts New Jersey Man of Illegally Trafficking in PaddlefishRead the Press Release
A New Jersey man was convicted in federal court today of illegally trafficking in paddlefish caviar after being caught in stemming from an undercover operation in the Warsaw, Missouri, area, announced the Department of Justice’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Western District of Missouri.
In support of Missouri’s paddlefish conservation efforts, the U.S. Fish and Wildlife Service and the Missouri Department of Conservation conducted an undercover investigation known as “Operation Roadhouse,” centered on an area known as the Roadhouse in Warsaw. As part of the operation, state and federal officers operated a paddlefish snagging business during the 2011 and 2012 paddlefish seasons.
Petr Babenko, 45, of Vineland, New Jersey, was found guilty of participating in a conspiracy to illegally buy and sell paddlefish and one count of illegally trafficking in paddlefish in violation of the Lacey Act. Babenko owned European International Foods, a specialty grocery business in Vineland.
Codefendant Bogdan Nahapetyan, 37, an Armenian citizen residing in Lake Ozark, Missouri, pleaded guilty on Nov. 12, 2013, to illegally trafficking in paddlefish.
Neither Babenko nor Nahapetyan had a valid roe fish dealer permit. Evidence introduced during the trial indicated that they possessed paddlefish and paddlefish eggs in excess of the Missouri possession limits and transported the paddlefish and paddlefish eggs across state lines.
For example, on April 24, 2012, Babenko and Nahapetyan negotiated with the undercover investigators to purchase 80 pounds of paddlefish eggs and five female paddlefish for $4,625. While loading the purchased caviar and female paddlefish into their van, they placed an additional order with the undercover investigators for more fish and caviar.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Missouri, deliberated for about 35 minutes before returning the guilty verdict to U.S. District Judge Stephen R. Bough, ending a trial that began Aug. 17, 2015.
In separate cases that arose from the undercover investigation, five additional defendants have pleaded guilty to trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act: Fedor Pakhnyuk, 41, of Hinsdale, Illinois, Felix Baravik, 50, and Arkadiy Lvovskiy, 54, both of Aurora, Colorado, Dmitri Elitchev, 49, of Centennial, Colorado, and Artour Magdessian, 48, of Lone Tree, Colorado.
Under federal statutes, Babenko is subject to a sentence of up to ten years in federal prison without parole, plus a fine up to $500,000. Babenko must forfeit to the government a 2011 Mercedes Benz cargo van that was used to commit the offense. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The Lacey Act is a federal statute which makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase fish that were taken, possessed, transported or sold in violation of any law or regulation of any state, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the purchase or sale, offer to purchase or sell, or intent to purchase or sell, fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of any state.
The American paddlefish (Polydon spathula), also called the Mississippi paddlefish or the “spoonbill,” is a freshwater fish that is primarily found in the Mississippi River drainage system. Paddlefish eggs are marketed as caviar. The retail value of the caviar is estimated to be between $30,000 and $50,000. Paddlefish were once common in waters throughout the Midwest. However, the global decline in other caviar sources, such as sturgeon, has led to an increased demand for paddlefish caviar. This increased demand has led to over-fishing of paddlefish and consequent decline of the paddlefish population.
Missouri law prohibits the transportation of paddlefish eggs which have been removed or extracted from a paddlefish carcass. Missouri law also prohibits the sale or purchase, or offer of sale or purchase, of paddlefish eggs. There are also several restrictions on the purchase and possession of whole paddlefish in Missouri.
This case is being prosecuted by Senior Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section and Assistant U.S. Attorney Lawrence E. Miller of the U.S. Attorney’s Office for the Western District of Missouri. It was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation, with assistance by the Oklahoma Department of Wildlife Conservation.
Jury Convicts New Jersey Man of Illegally Trafficking in PaddlefishRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a New Jersey man was convicted in federal court today of illegally trafficking in paddlefish caviar after being caught in an undercover operation in the Warsaw, Mo., area.
In support of Missouri’s paddlefish conservation efforts, the U.S. Fish and Wildlife Service and the Missouri Department of Conservation conducted a covert investigation, “Operation Roadhouse,” centered on an area known as the Roadhouse in Warsaw. As part of the covert operation, state and federal officers operated a paddlefish snagging business during the 2011 and 2012 paddlefish seasons. Covert officers also sold paddlefish to people who were interested in buying them.
Petr Babenko, 45, of Vineland, New Jersey, was found guilty of participating in a conspiracy to illegally buy and sell paddlefish and one count of illegally trafficking in paddlefish in violation of the Lacey Act. Babenko owned European International Foods, a specialty grocery business in Vineland.
Co-defendant Bogdan Nahapetyan, 37, an Armenian citizen residing in Lake Ozark, Mo., pleaded guilty on Nov. 12, 2013, to illegally trafficking in paddlefish.
Neither Babenko nor Nahapetyan had a valid roe fish dealer permit. Evidence introduced during the trial indicated that they possessed paddlefish and paddlefish eggs in excess of the Missouri possession limits, and transported the paddlefish and paddlefish eggs across state lines. The retail value of the caviar is estimated to be between $30,000 and $50,000.
For example, on April 24, 2012, Babenko and Nahapetyan negotiated with the undercover investigators to purchase 80 pounds of paddlefish eggs and five female paddlefish for $4,625. While loading the purchased caviar and female paddlefish into their van, they placed an additional order with the undercover investigators for more fish and caviar.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for less than an hour before returning the guilty verdict to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, Aug. 17, 2015.
In separate cases that arose from the undercover investigation, five additional defendants have pleaded guilty to trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act: Fedor Pakhnyuk, 41, of Hinsdale, Ill.; Felix Baravik, 50, and Arkadiy Lvovskiy, 54, both of Aurora, Colo.; Dmitri Elitchev, 49, of Centennial, Colo.; and Artour Magdessian, 48, of Lone Tree, Colo.
Under federal statutes, Babenko is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $500,000. Babenko must forfeit to the government a 2011 Mercedes Benz cargo van that was used to commit the offense. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
The Lacey Act
The Lacey Act is a federal statute which makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase fish that were taken, possessed, transported or sold in violation of any law or regulation of any state, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the purchase or sale, offer to purchase or sell, or intent to purchase or sell, fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of any state.
Paddlefish Trafficking
The American paddlefish (Polydon spathula), also called the Mississippi paddlefish or the “spoonbill,” is a freshwater fish that is primarily found in the Mississippi River drainage system. Paddlefish eggs are marketed as caviar. Paddlefish were once common in waters throughout the Midwest. However, the global decline in other caviar sources, such as sturgeon, has led to an increased demand for paddlefish caviar. This increased demand has led to over-fishing of paddlefish, and consequent decline of the paddlefish population.
Missouri law prohibits the transportation of paddlefish eggs which have been removed or extracted from a paddlefish carcass. Missouri law also prohibits the sale or purchase, or offer of sale or purchase, of paddlefish eggs. There are also several restrictions on the purchase and possession of whole paddlefish in Missouri.
This case is being prosecuted by Senior Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section and Assistant U.S. Attorney Lawrence E. Miller of the U.S. Attorney’s Office for the Western District of Missouri. It was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation, with assistance by the Oklahoma Department of Wildlife Conservation.
Jury Convicts KC Man of PCP ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of his role in a conspiracy to distribute PCP as well as a money-laundering conspiracy.
Antonio Laregus Robertson, 37, of Kansas City, was found guilty of the charges contained in a March 27, 2013, federal indictment.
Evidence presented during the trial indicated that Robertson participated in a conspiracy to distribute at least kilogram of PCP from Jan. 1, 2007, to March 13, 2013, as well as a conspiracy to conduct financial transactions that involved the proceeds of illegal drug trafficking. Cash and other items obtained from drug sales were used to purchase additional drugs for sale, which promoted the drug-trafficking conspiracy.
Robertson was among 20 defendants charged in the indictment, of whom 19 pleaded guilty and four have been sentenced.
According to the indictment, at least 10 law enforcement-controlled purchases of PCP, cocaine and crack cocaine were conducted with at least five of the defendants. At least 10 arrests or searches of co-conspirators occurred where PCP, cocaine or crack was recovered, the indictment says, and on multiple occasions during the conspiracy, defendants were found in possession of hundreds or thousands of dollars in cash, with no known legitimate income.
Robertson purchased PCP from co-defendant Walter Deandre Sorrells, also known as “Juice,” “Waterboy,” and “Walt,” 39, of Blue Springs, Mo. Sorrells pleaded guilty on Aug. 13, 2015, to his role in the drug-trafficking and money-laundering conspiracies. Sorrells admitted that he purchased large quantities of PCP from a source in California and re-sold it in smaller quantities in the Kansas City metropolitan area. Thirteen controlled drug purchases, totaling well in excess of one kilogram of PCP, were made directly with Sorrells. Additionally, at least two shipments of PCP (and other controlled substances) were taken by law enforcement before they were delivered to Sorrells and containers of another shipment were recovered from Sorrells. These shipments, in total, exceed one kilogram of PCP. Under the terms of his plea agreement, Sorrells will be sentenced to 20 years in federal prison without parole.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about seven hours before returning the guilty verdicts to U.S. Chief District Judge Greg Kays, ending a trial that began Monday, Aug. 17, 2015.
Under federal statutes, Robertson is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
All of the co-defendants are severally and jointly liable to forfeit to the government $814,000, which was received in exchange for the unlawful distribution of PCP, cocaine or crack cocaine. According to the indictment, that is based upon a conservative street price of $200 per ounce of PCP (3,099 ounces distributed), $1,000 per ounce of cocaine (129 ounces distributed) and $1,100 per ounce of crack cocaine (60 ounces distributed).
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Patrick C. Edwards. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the FBI and IRS-Criminal Investigation.
Juneau Resident Sentenced to 15 Years for Drug Trafficking and Possession of A Firearm in Furtherance of A Drug Trafficking CrimeRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a former Juneau resident was sentenced to 180 months of imprisonment for drug trafficking and possession of a firearm in furtherance of a drug trafficking crime.
William Byron Benedict, 46, a resident of Juneau, Alaska, was sentenced yesterday by U.S. District Court Judge Timothy M. Burgess in Anchorage to 180 months of imprisonment followed by a five year term of supervised release. On April 6, 2015, Benedict pled guilty to one count of drug trafficking conspiracy and one count of being in possession of a firearm in furtherance of a drug trafficking crime.
According to Assistant U.S. Attorney Jack Schmidt, who prosecuted the case, on June 2, 2013, Benedict was contacted by DEA agents at the Seattle-Tacoma Airport while attempting to board a flight to Juneau, Alaska. The agents seized 64.9 grams of actual methamphetamine and 336.8 grams of heroin from Benedict. On April 22, 2014, law enforcement executed an arrest warrant at Benedict’s residence in Juneau and subsequently discovered multiple loaded firearms and eight grams of actual methamphetamine and 155.4 grams of heroin. Law enforcement also seized $12,272 in U.S. currency that was obtained from the sale of narcotics, which Benedict was required to forfeit as part of his plea, along with the firearms seized at his residence.
In sentencing Benedict, Judge Burgess noted the seriousness of the crime, the defendant’s extensive criminal history, deterrence of the defendant and others, and a need to protect the public as the reasons for the sentence he imposed.
Ms. Loeffler commended the Drug Enforcement Administration, Federal Bureau of Investigation, Port of Seattle Police Department, and Juneau Police Department – Metro Drug Unit who conducted the investigation leading to the successful prosecution in this case.
Jonesboro Woman Pleads Guilty to Lying and Buying of Firearm Used to Kill Omaha, Nebraska Police OfficerRead the Press Release
ATLANTA - Jalita Jenera Johnson has pleaded guilty to lying during the purchase of a gun and magazine, saying it was for her, when in fact she purchased the gun for her convicted felon boyfriend, Marcus Wheeler. Wheeler later used the gun to kill an Omaha, Nebraska, police officer who was attempting to serve a warrant for his arrest.
“Laws which prevent convicted felons from buying guns are designed to protect the public,” said U.S. Attorney John Horn. “This defendant helped a convicted felon circumvent those laws. The tragic consequences and loss of life in this case reinforces the reason we have such strict laws in place.”
“The plea today is another reminder that ATF will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Special Agent in Charge Carl Walker.
According to U.S. Attorney Horn, the charges and other information presented in court: In April 2015, Jalita Jenera Johnson bought a Glock semiautomatic firearm, a 50‑round drum magazine, and ammunition from a pawnshop in Jonesboro, Georgia. When Johnson bought the firearm, she was required to fill out a Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473. That form requires the purchaser of the firearm to disclose who the true buyer or transferee of the firearm is. The defendant stated on the form that she was the true buyer. However, Johnson was, in fact, buying the firearm for her boyfriend, Marcus Wheeler, a convicted felon who could not buy the gun for himself.
Wheeler provided Johnson with the money to buy the gun and magazine and directed the defendant on which gun and magazine to buy. In May 2015, using the gun and magazine that Johnson bought for him, Wheeler got into an armed confrontation with the City of Omaha Police Department in Omaha, Nebraska, that resulted in the officer’s death. Wheeler was also killed during the shootout.
Sentencing for Jalita Jenera Johnson, 26, of Jonesboro, Georgia, is scheduled for November 2, 2015, at 2:00 p.m., before United States District Judge Eleanor L. Ross.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Mary L. Webb is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Jared Fogle charged with child pornography distribution and repeatedly engaging in commercial sex acts with minorsRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the filing of formal charges against Jared S. Fogle for distributing and receiving child pornography, and conspiring to do so, as well as repeatedly traveling to engage in commercial sex acts with underage minors. Fogle, 37, of Zionsville, Indiana, was charged by Information and has notified the U.S. District Court that he will plead guilty to all charges. He had his initial appearance before a magistrate judge earlier today and was released on home detention with GPS monitoring and other conditions. The case was the result of a joint state, local and federal investigation by the Indiana State Police, the Indianapolis Metropolitan Police Department, the Federal Bureau of Investigation, and the Indiana Internet Crimes Against Children Task Force, with assistance from the Marion County Prosecutor’s Office.
According to Minkler, “Mr. Fogle has admitted in court pleadings that he received child pornography involving multiple minors living in Indiana and other countries over the course of several years. His child pornography crime began when he learned that alleged co-conspirator Russell Taylor was sexually exploiting a 14 year old girl in March 2011. At that time, Mr. Fogle did nothing to stop the abuse or report it to authorities, but chose instead to receive and repeatedly view the child pornography involving the girl and those other minors produced by his alleged co-conspirator in the years that followed. It total, Mr. Fogle admitted in court pleadings filed today that his actions caused the sexual victimization of a total of 12 minors in Indiana before his co-conspirator’s arrest in April 2015. He preyed on minor victims who did not have the ability to protect themselves.”
Minkler further explained, “Mr. Fogle has also admitted in court papers that he repeatedly traveled to other states to engage in commercial sex acts with victims he knew were underage minors. This criminal conduct began years before his child pornography activities and did not involve Taylor. Such activities have devastating effects in the lives of minors subjected to such sex trafficking. Federal law provides strong punishment for engaging in commercial sex acts with minors under the age of 18 years or producing child pornography involving any minor under the age of 18 years. We will remain steadfast in our dedication to protecting children from offenders like him.”
According to the detailed charging Information and the admitted facts contained in Plea Agreement, between March of 2011, and January of 2015, Russell C. Taylor (who was federally charged in a separate case in May 2015) allegedly produced child pornography involving 12 minor victims in Indiana. Taylor secretly produced the images and videos of these minors, who were between 9 and 16 years old. The victims were filmed in Taylor’s house using multiple hidden cameras which were concealed in clock radios and positioned so they would capture the victims changing clothes, showering, bathing or engaging in other activities. Taylor allegedly then shared some of these images and videos with Fogle, who knew the victims were minors. During conversations and text messages with Taylor, Fogle made comments approving of the activity and discussed some of the minors by name. However, Fogle did not receive all of the material Taylor allegedly produced.
Fogle also allegedly received commercially produced child pornography videos from Taylor, who allegedly obtained the material through internet sources. The videos were made outside of the United States by other persons and showed the sexual abuse of victims as young as six years old. Fogle viewed some of these video files on a computer provided by Taylor as well as through text messages and a thumb drive. On one occasion, Fogle allegedly displayed some of these videos to another person using a thumb drive provided by Taylor.
From 2007 until June of 2015, Fogle repeatedly engaged in Internet social networking and traveled to other states for the purpose of engaging in commercial sexual acts with at least two underage minors. He did this using an email account, social networking websites containing advertisements for escorts or erotic services, online messaging, and text messages. On November 3, 2012, Fogle traveled to New York City and engaged in commercial sexual acts with a 17 year old female. This occurred at the Plaza Hotel, where Fogle was staying. The following day, Fogle sent text messages to the victim offering to pay her a fee, if she could find another underage girl to have sex with him. During the text discussions, Fogle stated he would accept a 16 year old girl, while indicating the younger the better.
On December 27, 2012, Fogle sent text messages to the same 17 year old victim, offering a fee if she could find a young minor to engage in sex. He provided the victim with an email address and asked her to send him pictures of herself. She complied and sent three, two of which were pornographic. Fogle acknowledged receiving the photos and expressed his approval.
In January 2013, Fogle engaged in commercial sex with the same victim at the Ritz Carlton Hotel in New York City, where he was staying. The victim provided Fogle with her true age when they first met and he knew that she was not yet 18 years old. The meetings with the victim were arranged through Internet communication and text messages to discuss sexually explicit details and financial terms.
Court filings also stated that Fogle engaged in commercial sex acts with a second underage minor in New York City. At other times, Fogle offered to pay adult prostitutes a finder’s fee if they could provide him underage minors for commercial sex acts with him, including minors as young as 14-15 years old.
Indiana State Police Superintendent Doug Carter said, “This entire investigation started with one lone tip to a state police officer. From that point the full resources of the Indiana Internet Crimes Against Children Task Force were brought to bear. This included investigators and forensic examiners from the state police, the Indianapolis Metro PD and the FBI.” Carter concluded, “This clearly demonstrates celebrity status does not serve as a shield from criminal prosecution, especially when such despicable crimes are perpetrated against children.”
“In our society, children are our most precious resource,” said IMPD Chief Rick Hite. “It is our collective responsibility to protect them from predators and bring to justice anyone who causes them hurt, harm, or danger.”
“As with all child pornography cases, the FBI investigates these cases with a sense of urgency due to the extreme vulnerability of the victims involved; our children,” said FBI Special Agent in Charge, W. Jay Abbott. “This case demonstrates that commitment to investigate those who would possess child pornography. The FBI looks forward to continuing its work on such matters with the United States Attorney’s Office, the Indiana State Police and the Indianapolis Metropolitan Police Department.”
According to Senior Litigation Counsel Steven D. DeBrota, who is prosecuting the case for the government, under the terms of the plea agreement, Fogle faces a mandatory minimum sentence of at least 5 years of imprisonment, a fine of up to $500,000, and supervised release after serving his prison sentence for at least 5 years and up to the remainder of his life. There is no agreed sentence in the case and the government may request of up to 151 months of imprisonment. However, Fogle may not request a sentence below 5 years of imprisonment.
The Plea Agreement also requires Fogle to pay a total of $1,400,000 in restitution to the 14 victims in the case, 8 of whom are still minors, and forfeit assets of $50,000. This is the largest amount of restitution ever ordered for a child pornography or sex trafficking case in the history of the Southern District of Indiana. The victims will be able to use these funds to pay for counseling and treatment to combat the debilitating life effects of these crimes.
The facts stated in the Information are allegations only, and Fogle and Taylor are presumed innocent until proven guilty beyond a reasonable doubt. While Fogle has signed a plea agreement and notified the Court he will plead guilty as charged, the hearing to accept his plea of guilty has not yet been scheduled. He will appear before U.S. District Court Judge Tanya Walton Pratt.
Individual Found Guilty of Drug TraffickingRead the Press Release
SAN JUAN, P.R. – After a four day jury trial, Delfín Robles-Álvarez was found guilty of conspiracy to distribute cocaine for the purpose of unlawful importation, conspiracy to import cocaine, and conspiracy to commit money laundering, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Judge Pérez-Giménez presided over the trial. Eight other co-conspirators had already pled guilty and are awaiting sentence and one other defendant is awaiting extradition.
According to the indictment, throughout the year of 2005 and continuing up to 2014, the defendant, along with others, intentionally combined, conspired, and agreed to possess with intent to import and distribute more than five kilograms of cocaine from Saint Martin, Netherlands Antilles into Puerto Rico.
During trial, the government presented video, audio, and telephone recordings of a Drug Enforcement Administration investigation into a drug trafficking organization responsible for transporting over 2,000 kilograms of cocaine from Saint Martin, Netherlands Antilles, to Puerto Rico for distribution and sale as well as the laundering of funds in excess of 12 million U.S. dollars. The complex conspiracy involved numerous players with various roles, the smuggling of money and drugs both by sea and by air, and various methods to launder the proceeds from these illegal activities, one of which was the Puerto Rico lottery system. A jury heard lay and expert testimony at trial that proved Delfin Robles-Alvarez’ willful participation and knowing involvement in the conspiracy.
“This conviction marks yet another victory in our fight against narcotics in Puerto Rico. Our team of prosecutors and case agents set an excellent example of teamwork during the investigation which led to the conviction of this defendant at trial,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The case was prosecuted by Assistant United States Attorney Mariana Bauza and Special Assistant United States Attorney Glenn Goetchius. Delfín Robles-Álvarez faces a maximum penalty of up to life imprisonment. The now convicted defendant also faces a possible fine and a money judgment to be determined later by the Judge.
Indianapolis Man Pleads Guilty in Pittsburgh-based Darkode CaseRead the Press Release
PITTSBURGH - A resident of Indianapolis, Indiana, pleaded guilty in federal court in Pittsburgh to a charge of violating the CAN-SPAM ACT, United States Attorney David J. Hickton announced today.
Phillip Fleitz, 31, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill, Jr. Fleitz is one of 12 individuals charged in connection with a significant computer hacking forum known as Darkode, which has been dismantled.
In connection with the guilty plea, the court was advised that Fleitz knowingly used a protected computer to relay or retransmit multiple commercial electronic mail messages with the intent to deceive or mislead recipients.
Judge Cohill scheduled sentencing for Nov. 24, 2015, at 2 p.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Phillip Fleitz.
Husband of Former DeKalb County Commissioner Sentenced to Prison for Stealing County FundsRead the Press Release
ATLANTA – John Boyer, the husband of former DeKalb County, Georgia, Commissioner Elaine Boyer, has been sentenced to one year and one day in federal prison for conspiring to steal county money. His plea and corruption charges stem from Elaine Boyer’s conviction on similar charges in September 2014.
“John Boyer used his wife’s position as a DeKalb County Commissioner to steal thousands of dollars in taxpayer funds. The Boyers’ scheme put county money in their pockets and ultimately left the citizens of DeKalb County holding the tab,” said U.S. Attorney John A. Horn. “In a county that has recently seen its share of corruption cases, this is a particularly sad chapter.”
“The sentencing of Mr. Boyer further illustrates that there are consequences for those who assist or entice public officials with regard to criminal corrupt activities. The FBI continues to make public corruption investigations its number one criminal program priority and asks that anyone with information regarding such activity to notify their nearest FBI field office,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: In DeKalb County, Georgia, the Board of Commissioners serves as the legislative branch of the DeKalb County Government. The Board of Commissioners is comprised of seven part-time commissioners, who are elected to serve four-year terms. Each of the seven Commissioners is responsible for the management of their respective offices, which includes controlling the offices’ budget and hiring staff members, contractors, and consultants. In recent years, the operating budget for a Commissioner’s office has been approximately $250,000 per year. The Commissioners may use their budget only for county-related business.
In 1992, Elaine Boyer began serving as the Commissioner of District 1, which serves citizens in north DeKalb County, including Brookhaven, Dunwoody, Tucker, and Smoke Rise, Georgia. In August 2014, Elaine Boyer resigned mid-term as the Commissioner of District 1.
In 2009, Elaine and John Boyer experienced financial difficulties. As a result, an unlawful kickback scheme was devised to obtain money from DeKalb County. In particular, in or about September 2009, Elaine Boyer, as the Commissioner of District 1, hired a family-friend Marion Rooks Boynton (who has been separately charged) as a political advisor allegedly to assist her with government consulting.
As part of the scheme, false invoices were submitted to Elaine Boyer’s office for services supposedly rendered by Boynton. In fact, Boynton performed no services for DeKalb County government, Elaine Boyer’s Office, or the citizens of DeKalb County.
Elaine Boyer used the false invoices as a basis to authorize payments to Boynton. From September 2009 to November 2011, based on requisition requests from Elaine Boyer’s Office, DeKalb County issued approximately 35 checks to Boynton for consulting services that were never performed. In total, DeKalb County paid Boynton more than $85,000.
John Boyer then instructed Boynton to deposit the money that Boynton received from DeKalb County into a bank account used by Elaine and John Boyer. Consequently, after being paid by DeKalb County, Boynton funneled approximately $60,000 received from DeKalb County into a personal bank account used by the Boyers. In turn, the Boyers used the money deposited into the account to pay personal living expenses.
In August 2014, Elaine Boyer, 59, of Stone Mountain, Georgia, resigned mid-term as the Commissioner of District 1. The day after resigning, Boyer was charged with conspiring to commit wire and mail fraud. On March 20, 2015, Boyer was sentenced to one year, two months in prison and ordered to pay approximately $87,000 in restitution.
On February 24, 2015, John Boyer, 63, of Stone Mountain, Georgia, pleaded guilty to conspiring to commit mail fraud. Boyer was sentenced to one year and one day in federal prison, three years of supervised release, and ordered to pay approximately $87,000 in restitution.
On August 11, 2015, the Grand Jury returned an indictment against Marion Rooks Boynton, 73, of Saint Simons Island, Georgia, on charges of conspiracy and substantive federal program theft.
This case is being investigated by Federal Bureau of Investigation.
Assistant U.S. Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.
Hobbs Woman Pleads Guilty to Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Ida Rodriguez, 46, of Hobbs, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating federal narcotics trafficking laws. Under the terms of her plea agreement, Rodriguez will be sentenced to 60 months in prison followed by a term of supervised release to be determined by the court.
Rodriguez was arrested on June 10, 2015, on a criminal complaint charging her with possession with intent to distribute methamphetamine in Lea and Doña Ana Counties, N.M. According to the complaint, Rodriguez sold methamphetamine to an undercover DEA agent in July 2014 and Aug. 2014. It also alleged that on Aug. 16, 2015, deputies of the Lea County Sherriff’s Office (LCSO) executed a traffic stop on Rodriguez and found her to be in possession of 168 grams of methamphetamine.
During today’s proceedings, Rodriguez pled guilty to a three-count felony information charging her with distribution of methamphetamine and possession of methamphetamine with intent to distribute. In entering the guilty plea, Rodriguez admitted that (1) on July 29, 2014, she sold 28 grams of methamphetamine to an undercover agent in Hobbs, (2) on Aug. 4, 2014, she sold 56 grams of methamphetamine to an undercover agent in Las Cruces, N.M., and (3) on Aug. 16, 2014, she was stopped by LCSO deputies for a traffic violation during which the deputies found 168 grams of methamphetamine in her vehicle. Rodriguez further admitted that she had obtained the methamphetamine in Phoenix, Ariz., and planned to sell it in Hobbs.
Rodriguez has been in federal custody since her arrest on June 10, 2015, and remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Lea County Drug Task Force with assistance from the 5th Judicial District Attorney’s Office for the State of New Mexico. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
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.
Heroin Dealer Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Eric Johnson, age 38, of Baltimore, today to 12 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Marilyn Mosby; and Interim Baltimore Police Commissioner Kevin Davis.
According to his plea agreement, between January and June 2014, Johnson conspired with co-defendants Ronald Ross, Keith Gilliam, Sara Jones, Nicholas Jones and others to distribute heroin in Baltimore City. The defendants obtained bulk quantities of heroin and packaged the heroin for retail distribution. The prepackaged heroin was provided daily to Johnson and his co- defendants who sold the drugs to customers at an open-air drug shop in the vicinity of Baltimore and Bentalou Streets.
Johnson and his co-conspirators distributed between 100 and 400 grams of heroin.
Ronald Ross, age 27, and Keith Gilliam, age 21, both of Baltimore, were previously sentenced to 10 years in prison and five years in prison, respectively. Nicholas Jones, age 23, of Baltimore, has pleaded guilty and is scheduled to be sentenced on August 31, 2015.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew Hoff, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Grand Prairie Resident Sentenced to 100 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A 34-year-old Grand Prairie, Texas, man, Luis Vasquez-Sanchez, was sentenced this morning by U.S. District Judge Ed Kinkeade to 100 months in federal prison, following his guilty plea in March 2015 to one count of transportation of child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Vasquez-Sanchez, a citizen of Honduras, has been in custody since his arrest in January 2015 on a related federal criminal complaint. He will be referred for deportation proceedings following his incarceration
According to documents filed in the case, the investigation began in July 2014 when a detective with the Plano Police Department, working in an undercover capacity to identify persons participating in the distribution of child pornography and the sexual exploitation of children through the use of peer-to-peer file sharing, identified Vasquez-Sanchez as an individual linked to a computer that was making images of child pornography available to share.
In January 2015, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) contacted and consensually interviewed Vasquez-Sanchez at his residence, and he allowed agents to search his computer. During that search, several images and videos of child pornography were discovered. A subsequent forensic examination of the computer revealed more than 100 images and 50 videos of child pornography. Some of the images and videos he collected depicted sadistic and/or violent content, and some of the files depicted infants and toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI and the Plano Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Former executive convicted of bribing former director of Cleveland VA Medical CenterRead the Press Release
A Virginia executive was convicted by a federal jury on 14 counts related to providing things of value to the former director of the Cleveland and Dayton Veterans Affairs Medical Center in exchange for confidential information about VA construction projects, law enforcement officials said.
Mark S. Farmer, 55, of Arlington, Virginia, was convicted on one count of conspiracy, one count of violating the Hobbs Act, two counts of wire fraud, six counts of mail fraud and four counts of theft of government property. He is scheduled to be sentenced Nov. 9.
Farmer was employed at CannonDesign, an integrated design firm headquartered in Buffalo, New York, that performed work for the VA. He worked in several different capacities, including associate principal.
Farmer and CannonDesign received VA records and things of value, including non-public information concerning the VA and streamlined access to public information concerning the VA, which William Montague had embezzled and stolen without authority from the VA. This was done to give Farmer and CannonDesign an advantage over other companies in the awarding and administration of VA business, according to court documents and trial testimony.
Montague, the former director of the Cleveland and Dayton Veterans Affairs Medical Center, previously pleaded guilty to 64 counts related to his role in the conspiracy. He is awaiting sentencing.
“Bribing a public official to obtain internal government documents and information for a competitive business advantage is illegal,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI will continue to root out corruption at all levels.”
“Today's verdict shows contractors and VA executives who cheat the taxpayers and veterans will be held accountable,” said Gavin McClaren, U.S. VA OIG, Resident Agent in Charge, Cleveland.
Farmer asked Montague to obtain information concerning VA contracts and business, including VA records. Montague used his power and influence at the VA to gain access to VA employees in ways that Farmer could not. Montague gave false and misleading information to VA employees about Montague’s reasons for requesting VA records and information, according to court records and trial testimony.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Paul Flannery following an investigation by the FBI and United States Department of Veterans Affairs—Office of Inspector General.
Former U.S. Government Employee Charged in Computer Hacking and Cyber Stalking SchemeRead the Press Release
A former locally-employed staff member of the U.S. Embassy in London was charged with engaging in a hacking and cyberstalking scheme in which, using stolen passwords, he obtained sexually explicit photographs and other personal information from victims’ email and social media accounts, and threatened to share the photographs and personal information unless the victims ceded to certain demands.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia, Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division made the announcement.
Michael C. Ford, 36, was charged by indictment on Aug. 18, 2015, with nine counts of cyberstalking, seven counts of computer hacking to extort and one count of wire fraud.
“According to the indictment, Ford hacked into email accounts and extorted sexually explicit images from scores of victims,” said Assistant Attorney General Caldwell. “As these allegations highlight, predators use the Internet to target innocent victims. With the help of victims and our law enforcement partners, we will find those predators and hold them accountable.”
“Ford is alleged to have hacked into hundreds of email accounts and tormented women across the country, by threatening to humiliate them unless they provided him with sexually explicit photos and videos,” said U.S. Attorney John Horn. “This sadistic conduct is all the more disturbing as Ford is alleged to have used the U.S. Embassy in London as a base for his cyberstalking campaign.”
“The Diplomatic Security Service is firmly committed to working with the Department of Justice and our other law enforcement partners to investigate allegations of crime and to bring those who commit these crimes to justice,” said Director Miller. “When a public servant in a position of trust is alleged to have committed a federal felony such as cybercrime, we vigorously investigate such claims.”
“While the allegations in this case are disturbing, it does illustrate the willingness and commitment of the FBI and its federal partners to aggressively follow those allegations wherever they take us,” said Special Agent in Charge Johnson. “The FBI will continue to provide significant resources and assets as we address complex cyber based investigations as seen here.”
According to allegations in the indictment, from January 2013 through May 2015, Ford, using various aliases that included “David Anderson” and “John Parsons,” engaged in a computer hacking and “sextortion” campaign to force numerous women to provide him with personal information and sexually explicit photographs and videos. To do so, Ford allegedly posed as a member of the fictitious “account deletion team” for a well-known email service provider and sent notices to thousands of potential victims, including members of college sororities, warning them that their accounts would be deleted if they did not provide their passwords.
Using the passwords collected from this phishing scheme, Ford allegedly hacked into hundreds of email and social media accounts, stole sexually explicit photographs and personal identifying information (PII), and saved both the photographs and PII to his personal repository.
Ford then allegedly emailed the victims and threatened to release the photographs, which were attached to the emails, unless they obtained videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores, and then sent the videos to him.
The indictment alleges that, when the victims either refused to comply or begged Ford to leave them alone, Ford responded with additional threats, including by reminding the victims that he knew where they lived. On several occasions, Ford allegedly followed through with his threats by sending sexually explicit photographs to victims’ family members and friends.
During the pendency of the alleged scheme, Ford was a civilian employee at the U.S. Embassy in London, England. He allegedly used his government-issued computer at the U.S. Embassy to conduct the phishing, hacking and cyberstalking activities.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Department of State’s Diplomatic Security Service and the FBI. The Criminal Division’s Office of International Affairs and the U.S. Embassy in London provided assistance. The case is being prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.
Anyone who believes that they are the victim of hacking, cyberstalking, or “sextortion” should contact law enforcement. Resources regarding hacking and other cybercrimes can be found at: https://www.fbi.gov/about-us/investigate/cyber.
Ford Indictment
Former Treasury Department Worker Pleads Guilty to Theft of Government FundsRead the Press Release
Greenbelt, Maryland – Marlene Biggs, age 53, of Bowie, Maryland today admitted to unlawfully converting funds obtained from her government credit cards to her personal use.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
Biggs was a management analyst with the Department of Treasury. She retired in 2013. According to her plea agreement, from October 2010 to January 2013, Biggs charged approximately $142,000 in 62 separate transactions to two Treasury-issued purchase cards for purported purchases of office supplies and equipment from a government vendor. In fact, no supplies and equipment were purchased in a majority of these transactions and instead, the vendor sent approximately $108,000 in 60 installments to Biggs’ personal bank account, and retained the balance.
In May 2014, an agent from the Treasury’s OIG office spoke to the vendor’s owner, who admitted to an agreement with Biggs in which he would charge government credit cards used by Biggs and then send approximately 75% of the charged amount back to Biggs’ personal bank account. When interviewed in July 2014, Biggs initially denied that she personally benefited from the funds she obtained from the vendor under this scheme. In fact, however, Biggs converted at least $100,000 in government funds to her personal use.
The total loss attributable to Biggs is between $120,000 and $200,000.
Biggs faces a maximum sentence of 10 years in prison for theft and conversion of government funds. Biggs has agreed to the entry of an order to pay restitution of at least $142,000 and forfeit at least $108,000. U.S. District Judge George J. Hazel has scheduled sentencing for November 24, 2015 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Department of the Treasury – OIG for its work in the investigation and thanked Special Assistant U.S. Attorney Nicholas J. Patterson, of the U.S. Department of Justice, and Assistant U.S. Attorney Joseph R. Baldwin, who are prosecuting the case.
Former State Department Employee Indicted in Computer Hacking and Cyberstalking SchemeRead the Press Release
ATLANTA – A federal grand jury has returned an indictment charging former U.S. State Department employee Michael C. Ford has been engaging in a hacking and cyberstalking scheme in which, using stolen passwords, he obtained sexually explicit photographs and other personal information from victims’ email and social media accounts, and threatened to share the photographs and personal information unless the victims provided him with additional explicit photos and videos.
“Ford is alleged to have hacked into hundreds of email accounts and tormented women across the country, by threatening to humiliate them unless they provided him with sexually explicit photos and videos,” said U.S. Attorney John Horn. “This sadistic conduct is all the more disturbing as Ford is alleged to have used the U.S. Embassy in London as a base for his cyberstalking campaign.”
“According to the indictment, Ford hacked into email accounts and extorted sexually explicit images from scores of victims,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “As these allegations highlight, predators use the Internet to target innocent victims. With the help of victims and our law enforcement partners, we will find those predators and hold them accountable.”
“The Diplomatic Security Service is firmly committed to working with the Department of Justice and our other law enforcement partners to investigate allegations of crime and to bring those who commit these crimes to justice,” said Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security. “When a public servant in a position of trust is alleged to have committed a federal felony such as cybercrime, we vigorously investigate such claims.”
“While the allegations in this case are disturbing, it does illustrate the willingness and commitment of the FBI and its federal partners to aggressively follow those allegations wherever they take us,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division. “The FBI will continue to provide significant resources and assets as we address complex cyber-based investigations as seen here.”
According to U.S. Attorney Horn, the charges and other information presented in court: From January 2013 through May 2015, Ford, using various aliases that included “David Anderson” and “John Parsons,” engaged in a computer hacking and “sextortion” campaign to force numerous women to provide him with personal information and sexually explicit photographs and videos. To do so, Ford allegedly posed as a member of the fictitious “account deletion team” for a well-known email service provider and sent notices to thousands of potential victims, including members of college sororities, warning them that their accounts would be deleted if they did not provide their passwords.
Using the passwords collected from this phishing scheme, Ford allegedly hacked into hundreds of email and social media accounts, stole sexually explicit photographs and personal identifying information (PII), and saved both the photographs and PII to his personal repository.
Ford then allegedly emailed the victims and threatened to release the photographs, which were attached to the emails, unless they obtained videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores, and then sent the videos to him.
The indictment alleges that, when the victims either refused to comply or begged Ford to leave them alone, Ford responded with additional threats, including by reminding the victims that he knew where they lived. On several occasions, Ford allegedly followed through with his threats by sending sexually explicit photographs to victims’ family members and friends.
During the pendency of the alleged scheme, Ford was a civilian employee at the U.S. Embassy in London, England. He allegedly used his government-issued computer at the U.S. Embassy to conduct the phishing, hacking and cyberstalking activities.
Michael C. Ford, 37, of Atlanta, Georgia, was indicted by a grand jury on August 18, 2015, charging him with nine counts of cyberstalking, seven counts of computer hacking to extort, and one count of wire fraud. The names of the victims are being withheld from the public in order to protect their privacy.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Department of State, Diplomatic Security Service and the Federal Bureau of Investigation.
The case is being prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia, Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section. Assistance was provided by the Criminal Division’s Office of International Affairs and the U.S. Embassy in London.
Anyone who believes that they are the victim of hacking, cyberstalking, or “sextortion” should contact law enforcement. Resources regarding hacking and other cybercrimes can be found at: https://www.fbi.gov/about-us/investigate/cyber.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Member of Tax Services Firm Pleads Guilty in $20 Million Fraud SchemeRead the Press Release
RICHMOND, Va. – Sean M. Weaver, 33, of Alexandria, Virginia, pleaded guilty today to mail fraud and money laundering for filing false claims resulting in over $20 million in sales and use tax refunds to two corporate clients.
According to a statement of facts filed with the plea agreement, Weaver was a member of the transaction tax practice group in the Arlington, Virginia office of Ryan LLC, a tax services firm headquartered in Dallas, Texas. The transaction tax practice group specialized in submitting claims to state and local taxing authorities to obtain refunds of sales and/or use tax overpayments made by Ryan LLC’s corporate clients. Ryan LLC generally entered into compensation agreements with its clients whereby it would receive as a fee a percentage of the overpayments that it recovered on behalf of its clients.
Weaver managed a team of 10 to 15 employees and was responsible for submitting claims to the state taxing authorities on behalf of Ryan LLC’s clients. For engagements to which he and his team were assigned, Weaver would receive as a bonus payment a percentage of the fee received by Ryan LLC.
Between October 2011 and December 2014, Weaver submitted and caused to be submitted several false claims for sales and/or use tax refunds to the Virginia Department of Taxation and the Texas Comptroller of Public Accounts on behalf of two of Ryan LLC’s corporate clients. In submitting the false claims, Weaver manipulated client transactional data and falsified invoices and other transactional records to inflate the amount of sales and/or use tax actually paid by the clients during certain transactions. As a result of the scheme, the state taxing authorities issued over $20 million in fraudulent refunds to Ryan LLC clients and Weaver received over $350,000 in personal bonus payments.
Ryan LLC voluntarily reported Weaver’s actions to law enforcement and fully cooperated in the investigation. As part of the plea agreement, Weaver admitted that he acted alone and that no one else from Ryan LLC or its clients took part in the scheme. Weaver further agreed to forfeit $250,480 seized by the United States as property involved in the offense and the value of his account with a peer-to-peer lending company.
Weaver faces a maximum penalty of 30 years in prison sentenced on December 1, 2015. 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; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and David G. Bowers, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS), made the announcement after the plea was accepted by U.S. District Judge John A. Gibney, Jr.
This case was investigated by the FBI’s Richmond Field Office, IRS-CI, and USPIS. Assistant U.S. Attorneys Dominick S. Gerace and Michael S. Dry 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-139.
Former Louisville Teacher Pleads Guilty to Charges of Enticement, Production, Distribution and Possession of Child PornographyRead the Press Release
Defendant met in person with 15 year old to engage in and record sexual activity
Defendant used 16 different minors to produce child pornography using social media
LOUISVILLE, Ky. – A Louisville man previously employed by a parochial high school located in Jefferson County, Kentucky, as a high school teacher and assistant coach with the school’s athletics department, pled guilty today in United States District Court to violating child exploitation laws announced United States Attorney John E. Kuhn, Jr. United States District Judge David J. Hale accepted the guilty pleas.
Patrick Newman, age 33, was previously charged in a Criminal Complaint and then felony Information. He pled guilty to 16 counts of producing child pornography, one count of online enticement of a minor, one count of transporting child pornography, and one count of possessing child pornography. The charges involved 16 different victims, all boys. The ages of the children ranged from 12 to 17. Three victims are from Kentucky, including at least one of whom Newman met in person. According to information exchanged during their online communications, the remaining victims are from Texas, Ohio, Indiana, Colorado, North Carolina, New York, Utah, Oregon, and the United Kingdom.
"These were unspeakable crimes, victimizing vulnerable and impressionable minors,” stated U.S. Attorney Kuhn. “Protecting our children will always be the highest priority of this office, and we will continue to prosecute those who exploit children to the fullest extent of the law."
According to the Affidavit attached to a previous criminal complaint, the investigation started earlier this year when the National Center for Missing and Exploited Children received a CyberTip from Twitter, Inc. regarding the upload of child pornography materials to VINE (a video sharing website owned by Twitter) from the same IP address in Texas, between 12-28-2014 and 12-30-2014. Law enforcement officials in Texas identified the child depicted in the images and later identified Newman as an adult who had been communicating with the child and obtaining sexually explicit images of the child.
Law enforcement officials executed a federal search warrant on Newman’s Louisville home in early June. Homeland Security Investigations (HSI) within the Department of Homeland Security (DHS) arrested Newman that same day. During a recorded, post-Miranda interview, Newman admitted a sexual interest in boys 13-17 years of age. He also admitted to communicating with minors through social media tools/applications such as KIK, VINE, Snapchat and Topix for the past two years.
Forensic examination of Newman’s cellular telephone revealed electronic communications between him and many other individuals involving the sexual exploitation of minors. Based on representations during those communications, Newman solicited and obtained sexually explicit images from 16 boys under the age of 18. He gave specific directions to some of the children as to what he wanted them to do, record, and send him. With one child, he specifically asked for sadistic images involving a plunger. Newman met at least one boy (age 15) in person on several occasions. The two engaged in sexual activity which Newman recorded – using his phone. He told other people, via social media, about his sexual activities with the boy and transported/distributed the videos to them. He also shared other images and videos of child pornography with people via social media. According to a review of his phone, he transported/distributed child pornography to 56 people, in addition to the 16 minors. Also, a review of Newman’s “Dropbox” account, he possessed 87 videos depicting child pornography involving boys.
Newman has been in federal custody since his arrest on June 1, 2015. He faces a mandatory minimum prison term of 15 years followed by a 5-year period of Supervised Release. The maximum potential penalties are life in prison, a $4,750,000.00 fine, and up to and including a life period of Supervised Release. A sentencing hearing will be held on December 16 2015, at 1:30pm, before United States District Judge Hale.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The investigation is being led by HSI Louisville Division of the Department of Homeland Security, with assistance from state, local, and federal law enforcement entities in Kentucky, Indiana and Texas.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Dmv Clerk Pleads Guilty to Unauthorized Use of A Protected ComputerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.- The United States Attorney’s Office announced today that Michael Anthony Young, 49, of Buffalo, N.Y., pleaded guilty to obtaining information from a protected computer, before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. The charge carries a maximum penalty of 1 year in prison and a $100,000 fine.Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that Mr. Young, a former employee at the Erie County Department of Motor Vehicles, used his position as a Motor Vehicle Representative to solicit and accept bribes for his assistance in passing permit examinations. After failing an examination on one or more occasions, Mr. Young would provide the correct answers to individuals in advance of the test. After the applicant had received a passing score due to Mr. Young’s assistance, Mr. Young would complete paperwork containing the false passing score which would then be inputted into the DMV computer systems so that the individual would be mailed his or her permit.
The plea is the result of an investigation by Special Agents from the Department of Homeland Security, Homeland Security Investigations, and Investigators from the New York State Department of Motor Vehicles, Division of Field Investigations.
Sentencing is scheduled for November 19, 2015 at 11 A.M. before Judge Schroeder.
Final Freedom Industries defendants plead guiltyRead the Press Release
Former Freedom Presidents Gary Southern and Dennis Farrell
Admit to Federal Environmental Crimes in Elk River Chemical Spill
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that the final defendants charged in connection with the January 2014 Elk River chemical spill pleaded guilty in federal court. Gary Southern, 53, the president of Freedom Industries, Inc., at the time of the spill, pleaded guilty today to violating the federal Clean Water Act, negligently discharging refuse matter in violation of the federal Refuse Act, and failing to have a pollution prevention plan. Dennis P. Farrell, 58, a former Freedom president and owner, pleaded guilty Tuesday to violating the federal Refuse Act and failing to have a pollution prevention plan. Freedom and four other Freedom officials previously pleaded guilty to environmental crimes in March 2015.
“This should serve as a wakeup call to those who operate chemical storage facilities near our precious water resources. If you place our water at risk, you face prison time,” Goodwin said. “As I said when these individuals were charged, this spill, which was completely preventable, happened to take place in this district, but it could have happened anywhere. If we don’t want it to happen again, we need to make it crystal clear that those who engage in this kind of criminal behavior will be held accountable. That’s exactly what we have done through these prosecutions.”
Freedom Industries, Inc., and six former Freedom officials—including Farrell and Southern—were charged in December 2014 with various federal crimes related to the January 2014 Elk River chemical spill in Charleston, W.Va., which ultimately affected the water supply of more than 300,000 people.
Southern faces a mandatory minimum of 30 days and up to three years in federal prison when he is sentenced on December 16, 2015. Farrell faces a mandatory minimum of 30 days and up to two years in federal prison when he is sentenced on December 14, 2015.
Southern and Farrell’s criminal conduct included:
• failure to properly maintain the containment area surrounding the tanks at Freedom’s Elk River facility and to make necessary repairs to ensure the containment area would contain a chemical spill;
• failure to properly inspect a tank containing the chemical MCHM;
• failure to develop and implement a spill prevention, control and countermeasures plan; and
• failure to develop and implement a stormwater pollution prevention plan and groundwater protection plan, both requirements of a National Pollutant Discharge Elimination System Permit.
William E. Tis of Verona, Pa., and Charles E. Herzing of McMurray, Pa., former owners of Freedom, each pleaded guilty in March 2015 to one count concerning the negligent discharge of refuse matter in violation of the federal Refuse Act. They each face a mandatory minimum of 30 days and up to a year in federal prison. Tis is set to be sentenced December 2, 2015. Herzing is set to be sentenced December 3, 2015.
Freedom environmental consultant Robert J. Reynolds of Apex, N.C., and tank farm plant manager Michael E. Burdette of Dunbar, W. Va., were charged separately with violating the federal Clean Water Act. They each pleaded guilty to those charges in March 2015. They each face up to one year in prison. Reynolds is set to be sentenced December 7, 2015. Burdette’s sentencing is set for December 9, 2015.
Freedom Industries itself, which has been in bankruptcy since shortly after the spill, was charged with violating the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. A representative of the corporation entered a guilty plea to those charges on its behalf in March 2015. Freedom is set to be sentenced December 10, 2015.
Drug Trafficker Pleads Guilty to Methamphetamine DistributionRead the Press Release
PHOENIX– Today, Raul Gutierrez-Cisneros, 43, of Phoenix, Ariz., pleaded guilty to possession with intent to distribute methamphetamine.
In this Organized Crime Drug Enforcement Task Force-led (OCDETF) undercover investigation, Gutierrez-Cisneros engaged in negotiations in February 2015 during which he agreed to sell 60 pounds of methamphetamine. Soon afterward, Gutierrez-Cisneros arranged for two of his associates, one of whom chose to bring a loaded Browning 9mm pistol, to deliver approximately 18 pounds of methamphetamine to a Phoenix hotel. Upon their arrival at the hotel, the FBI arrested all three men and seized the methamphetamine and the pistol.
Gutierrez-Cisneros’s conviction for possession with intent to distribute methamphetamine carries a maximum penalty of life in prison, a maximum fine of $10,000,000, or both.
Sentencing is set before Judge Susan R. Bolton on Nov. 2, 2015 at 1:30 P.M.
The OCDETF investigation in this case was conducted by the Federal Bureau of Investigation and Homeland Security Investigations. The prosecution is being handled by Don Pashayan, Assistant U.S. Attorney, and Dominique Park, Special Assistant U.S. Attorney and Immigration and Customs Enforcement Assistant Chief Counsel, District of Arizona, Phoenix.
CASE NUMBER: CR-15-00335-001-PHX-SRB
RELEASE NUMBER: 2015-062_Gutierrez-Cisneros
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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.
Dominican National Charged with Heroin Trafficking and Illegal Reentry into the United States After DeportationRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today charging a Hazleton resident with distributing more than 100 grams of heroin and illegally reentering the country after having been removed as an illegal alien.
According to United States Attorney Peter Smith, the Information alleges that Edwin Guerrero-Guerrero a/k/a “Angel Dueno Matos,” age 35, who is a citizen of the Dominican Republic and was residing in Hazleton at the time of his arrest, distributed and possessed with intent to distribute more than 100 grams of heroin, and illegally reentered the United States after having been previously removed as an illegal alien.
The charges stem from an investigation by special agents and task force officers of the Federal Bureau of Investigation, Homeland Security Investigations, and Hazleton Police.
Guerrero-Guerrero faces a potential maximum sentence of 40 years in prison and a $5 million fine if he is convicted of the drug charge, and up to 20 years in prison and a $250,000 fine if he is convicted of the illegal reentry charge.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is a total of 60 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Department of Justice Announces Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
Department of Justice Tribal Access Program (TAP) Will Improve the Exchange of Critical Data
Department of the Interior Companion Program to Provide Name-Based Emergency Background Checks for Child Placement
The Department of Justice is launching an initial phase of the Tribal Access Program for National Crime Information (TAP) to provide federally-recognized tribes access to national crime information databases for both civil and criminal purposes. TAP will allow tribes to more effectively serve and protect their communities by ensuring the exchange of critical data.
This initial phase of TAP was announced today in a meeting with tribes held during the 2015 Department of Justice/FBI Criminal Justice Information Services (CJIS) Division Tribal Conference in Tulsa, Oklahoma.
“Federal criminal databases hold critical information that can solve crimes, and keep police officers and communities safe,” said Deputy Attorney General Sally Quillian Yates. “The Tribal Access Program is a step forward to providing tribes the access they need to protect their communities, keep guns from falling into the wrong hands, assist victims and prevent domestic and sexual violence. Empowering tribal law enforcement with information strengthens public safety and is a key element in our ongoing strategy to build safe and healthy communities in Indian country. ”
“The FBI is pleased to participate in this initiative,” said Executive Assistant Director Amy Hess of the FBI’s Science and Technology Branch. “This will be a positive step for the tribal agencies to receive valuable criminal information and also for those same tribal agencies to submit criminal information at the national level. Through this partnership, information becomes richer and communities can become safer.”
TAP will support tribes in analyzing their needs for national crime information and help provide appropriate solutions, including a-state-of-the-art biometric/biographic computer workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access CJIS systems for criminal and civil purposes through the Department of Justice. TAP will also provide specialized training and assistance for participating tribes.
While in the Tribal Law and Order Act of 2010 Congress required the Attorney General to ensure that tribal officials that meet applicable requirements be permitted access to national crime information databases, the ability of tribes to fully participate in national criminal justice information sharing via state networks has been dependent upon various regulations, statutes and policies of the states in which a tribe’s land is located. Therefore, improving access for tribal law enforcement to federal criminal information databases has been a departmental focus for several years. In 2010, the department instituted two pilot projects, one biometric and one biographic, to improve informational access for tribes. The biographic pilot continues to serve more than 20 tribal law enforcement agencies.
Departments of Justice and Interior Working Group
In 2014, the Departments of Justice and the Interior (DOI) formed a working group to assess the impact of the pilots and identify long-term sustainable solutions that address both criminal and civil needs of tribes. The outcome of this collaboration was the TAP, as well as an additional program announced today by the DOI’s Bureau of Indian Affairs (BIA) that provides tribes with national crime information prior to making child placement decisions in emergency circumstances. Under the BIA program, social service agencies of federally recognized tribes will be able to view criminal history information accessed through BIA’s Office of Justice Services who will conduct name-based checks in situations where parents are unable to care for their children.
“Giving tribal government programs access to national crime databases through DOJ’s Tribal Access Program for National Crime Information is a tremendous step forward towards increasing public safety in Indian Country,” said Assistant Secretary Kevin K. Washburn for Indian Affairs at the Department of the Interior. “The Bureau of Indian Affairs Office of Justice Services’ Purpose Code X program provides a much-needed tool for tribal social service agencies when they must find safe homes to place children during temporary emergency situations.”
In the initial phase of the TAP program, the biometric/biographic workstations will be deployed to up to 10 federally-recognized tribes who will provide user feedback. This phase will focus on assisting tribes that have law enforcement agencies, while in the future the department will seek to address needs of the remaining tribes and find a long-term solution. The department will continue to work with Congress for additional funding to more broadly deploy the program.
The Department of Justice’s Chief Information Officer manages TAP.
“It is our hope that TAP can minimize the national crime information gap and drive a deeper and more meaningful collaboration between the federal, state, local and tribal criminal justice communities,” said Chief Information Officer Joseph F. Klimavicz for the department.
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal.
For more information about the Department of the Interior Bureau of Indian Affairs, visit www.indianaffairs.gov/
Defendant Admits Smuggling Cocaine through an Underwater Narcotics Tunnel in Wetsuit and Scuba GearRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Sherri Hobson (619) 546-6986
NEWS RELEASE SUMMARY – August 19, 2015
SAN DIEGO – Evelio Padilla-Zepeda, a Honduran national, pleaded guilty in federal court today, admitting that he donned a wetsuit and scuba gear and smuggled 55 pounds of cocaine through an underwater drug tunnel that exited into the All-American Canal just north of the international border.
Padilla-Zepeda entered his plea before U.S. Magistrate Judge William Gallo. He is scheduled to be sentenced on December 7, 2015 at 9:00 a.m. before U.S. District Judge Roger Benitez.
On April 25, 2015, Border Patrol Agents were patrolling about seven miles east of the Calexico West Port of Entry at 10:25 p.m. when they were informed by a remote video surveillance operator that there was an individual along the All-American Canal.
According to court records, agents searched the southern embankment and encountered the defendant, who was soaking wet and dressed in a wetsuit. Agents apprehended the defendant and continued to search the immediate area and found 25 one-pound vacuum-sealed weighted and gift-wrapped packages of cocaine plus scuba tanks and diving gear, including two rebreather tanks which recirculate a diver’s exhaled breath and prevent tell-tale bubbles – a giveaway that a diver is in the water.
Subsequently, Border Patrol Agents found an underground tunnel from Mexicali, Mexico, continuing under the border and ending at the south bank of the canal. The exit point of the tunnel is in the embankment of the canal, partially submerged by the canal’s water and covered with rocks which have to be moved to access the exit. The tunnel was approximately 45 to 50 yards long.
In court, Padilla-Zepeda admitted that he entered the south canal bank of the All-American Canal in Calexico through an underground tunnel from Mexico into the United States, wearing scuba gear and carrying 25 packages of cocaine. The defendant also admitted that he intended to use his scuba gear to transport the cocaine in the canal and underwater to another location in the All-American Canal.
“Drug smugglers will try anything to move their product – even scuba diving in an underwater tunnel,” said U.S. Attorney Laura Duffy. “The ingenuity of the smugglers is matched only by our determination to thwart it, as we have done in this case.”
“This investigation demonstrates the incredible lengths that these drug trafficking organizations will go to ensure that their product makes it to the streets,” said DEA San Diego Special Agent in Charge William R. Sherman. “With the assistance of our law enforcement partners, a cross-border drug tunnel was shut down, keeping our communities safe.”
“We are pleased with the conclusion of this serious matter resulting from the arrest of this man and dangerous drugs seized by El Centro Sector Border Patrol agents,” said Chief Patrol Agent Carla Provost.
DEFENDANT Criminal Case No. 15CR1375-BEN
Evelio Padilla-Zepeda Age: 28 Hometown: Mexicali, Mexico; Citizen of Honduras
SUMMARY OF CHARGE
Possession of Cocaine With Intent To Distribute -- Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: 20 years’ imprisonment and $250,000 fineAGENCIES
United States Border Patrol, Calexico Station
Homeland Security Investigation
Drug Enforcement Administration
Dallas Lawyer Sentenced to Serve 12 Months and One Day in Federal PrisonRead the Press Release
DALLAS — A Dallas attorney who pleaded guilty to federal felony offenses involving copyright infringement and investor fraud was sentenced this morning, announced John Parker, U.S. Attorney for the Northern District of Texas.
Andrew Lee Siegel, 56, was sentenced this morning by U.S. District Judge Ed Kinkeade to serve a total of 12 months and one day in federal prison and ordered to pay $285,310 in restitution. He must surrender to the Bureau of Prisons by October 15, 2015. In July 2014, Siegel pleaded guilty to one count of felony criminal infringement of a copyright, and in January 2015, he pleaded guilty to one count of mail fraud.
In fall 2010, Siegel established Dynasty Spirits, LLC, and later Dynasty Spirits, Inc. and Speak Easy Distillers, LLC, to facilitate the production and bottling of “Nue Vodka.” In February 2012, Siegel created a private placement memorandum for Dynasty Spirits, Inc. (Dynasty) authorizing the sale of up to $2 million of common stock shares by Dynasty. In June 2013, Siegel became the registered agent and manager of Vanguard Spirits, LLC, which was established for the purpose of distilling, branding and marketing “Vanguard Vodka.”
From September 2011 through July 2012, Siegel collected approximately $1,595,000 from 35 investors for the sale of Dynasty stock certificates. Siegel concealed from Dynasty owners that he unlawfully used up to $410,000 of that amount for his personal benefit, which he had collected from no more than six of the 35 investors.
In November 2012, Dynasty owners suspected Siegel had unlawfully used investor funds, and when confronted, Siegel falsely stated that he had attempted to wire $185,000 in investor funds to Dynasty but the transfer was misrouted. The following month, Siegel created fraudulent and fictitious emails to Dynasty owners representing he attempted to wire transfer $185,000 from his bank account to the Dynasty owners’ bank account. Some of the fraudulent emails Siegel created contained copyrighted writings and the logo of The Northern Trust Company.
Later that month, Siegel created another fraudulent email to Dynasty owners that contained copyrighted writings, letterhead and logos of the Federal Reserve Bank Services. In fact, Siegel used several fraudulent and fictitious emails that falsely represented to Dynasty owners that he was in contact with The Northern Trust Company and the Federal Reserve Bank Services in connection with his “attempted” $185,000 wire transfer to the Dynasty owners. Siegel engaged in this fraudulent conduct to deceive the owners of Dynasty and convince them that he was making a good faith effort to transfer investor funds to the investors of Dynasty.
On June 24, 2013, Siegel stole $210,000 from client EP’s escrow account to use as part of a legal settlement payment to owners of Dynasty Spirits. Those owners were the victims in Siegel’s infringement conviction. From June through November 2013, Siegel stole a total of $275,000 from his client EP's escrow account.
On May 21, 2014, Siegel reimbursed EP by fraudulently and secretly disbursing $285,310 of Vanguard Spirits investor funds. Siegel concealed this fraudulent disbursement of Vanguard investor funds from Vanguard investors and management.
When Siegel pleaded guilty in July 2014, he made no admission or reference to his fraudulent disbursement of funds from both EP’s escrow account and from Vanguard Spirits’ investor funds.
The FBI investigated the case and Assistant U.S. Attorney David L. Jarvis prosecuted.
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Columbus Man Sentenced to 50 Months for Failure to Update Sex Offender RegistrationRead the Press Release
COLUMBUS, Ohio – Robert Jarrod Johnson, 33, most recently of Columbus, Ohio, was sentenced in U.S. District Court to 50 months in prison and five years of supervised release for failure to comply with the Sex Offender Registration and Notification Act.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Peter Tobin, U.S. Marshal, Southern District of Ohio, announced the sentence handed down yesterday by Senior U.S. District Judge Peter C. Economus.
According to court documents, Johnson was convicted of Second Degree Rape of a female juvenile in North Carolina in 2001. For at least the next 30 years, he was ordered to register as a sex offender in any state in which he lived or worked. Johnson moved to Columbus, Ohio and obtained employment and an Ohio state ID card, but never registered as a sex offender in Ohio. He was indicted in December 2014 on a federal Sex Offender Registration and Notification Act violation and pleaded guilty to that offense in February 2015.
During the course of the case, investigators discovered that between May 2013 and October 2013, Johnson allegedly committed multiple sex offenses against a girl between the ages of 12 and 13 in Columbus, Ohio, during the period in which he was not registering as a sex offender. Judge Economus ruled that it was appropriate to increase Johnson’s sentence based on that conduct.
In April 2015, Johnson was indicted in Franklin County on counts of Rape, Gross Sexual Imposition, and Unlawful Sexual Conduct with a Minor. That case remains pending. An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
U.S. Attorney Stewart commended the investigation by Senior Inspector Nicole Ralston, as well as Assistant United States Attorney Brian Martinez, who represented the United States in this case.
Clover Gang Member Pleads Guilty to Federal Firearm and Drug ChargesRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Joseph Matthew Polk, age 24, of Clover, South Carolina pled guilty today in federal court. Polk plead guilty to possession with intent to distribute and distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime (to wit: possession with intent to distribute and distribution of marijuana), all in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and Title 18, United States Code, Section 924(c). Under the plea agreement, Polk agreed to a total sentence of 240 months (20 years) imprisonment and an appropriate term of supervised release to follow, comprised of 180 months (15 years) imprisonment on the possession with intent to distribute and distribution of methamphetamine charge and 60 months (5 years) consecutive imprisonment on the firearm charge. Senior United States District Joseph F. Anderson, Jr. accepted the plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on March 19, 2015, at his residence in Clover, South Carolina, Polk, while armed with a Harrington & Richardson .32 caliber revolver, sold a quantity of marijuana to a confidential informant. The following day, March 20, 2015, Polk, while armed with a Smith & Wesson 9mm handgun, sold a quantity of methamphetamine to a confidential informant. Thereafter, on March 24, 2015, Polk, while armed with a Smith & Wesson 9mm handgun, sold a quantity of methamphetamine to a confidential informant. On that date, a young child was observed in the same room where the distribution occurred and while Polk waved around the 9mm handgun. Each of the three distributions of drugs was recorded on audio and video by local law enforcement officers. Polk was arrested on state charges on April 9, 2015, and during the arrest, officers recovered the Smith & Wesson 9mm handgun, along with gang paraphernalia, and a residue amount of methamphetamine. After being advised of his rights, which he waived, Polk admitted to being in possession of firearms and being a dues collector for a local gang. At the time of the three distributions, Polk was on federal supervised release from a 2014 federal conviction for felon in possession of a firearm out of the Spartanburg Division. Polk is prohibited under federal law from possessing firearms and/or ammunition based upon his prior federal conviction for possession of firearm by a felon and his prior state convictions for burglary 2nd degree and grand larceny.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the York County Multi-jurisdictional Drug Enforcement Unit and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Claremore Woman Sentenced to 36 Months Probation for Embezzlement and Theft from Indian Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that LANA CAROLE KELLEY, age 38, of Claremore, Oklahoma, was sentenced to 36 months of probation with 6 months of home confinement for EMBEZZLEMENT AND THEFT FROM INDIAN TRIBAL ORGANIZATION, in violation of Title 18, United States Code, Section 1163.
Charges arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The defendant was indicted in March, 2015 and pled guilty in April, 2015.
The Indictment alleged that between on or about March 10, 2010 and on or about May 21, 2012, in the Eastern District of Oklahoma, the defendant, LANA CAROLE KELLEY, did embezzle, steal, knowingly and willfully convert to her own use or the use of another and willfully misapply in excess of $1,000.00 of moneys, funds and credits which was then intrusted to the custody and care of an employee of Choctaw Nation Healthcare, an Indian tribal organization.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Edward Snow represented the United States.
Canton man faces charges for heroin and cocaineRead the Press Release
A federal grand jury returned an indictment charging Clifford Ramsey, 20, of Canton, with possession with the intent to distribute and distribution of approximately 163 grams of heroin and approximately 94.55 grams of cocaine, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Ramsey was apprehended in March 2015 by law enforcement after fleeing on foot from a traffic stop. Officers recovered two plastic garbage bags containing the heroin and cocaine during the foot pursuit, according to court documents.
If convicted, a 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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Canton Police Department, Stark County Safe Streets Task Force and the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Teresa Riley.
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.
California Man Sentenced to Federal Prison for Fraudulent Cellphone SchemeRead the Press Release
ALBUQUERQUE – Amir Meir Levi, 38, of Canoga Park, Calif., was sentenced this morning to 21 months in prison followed by three years of supervised release for his role in a scheme to fraudulently obtain high-value cellular phones from retail stores in California, Arizona and New Mexico and to resell the cellular phones for profit.
Levi and his three co-defendants, Joshua Ferdman, 35, Jeffrey Contella, 30, and Joseph Cohen, 28, all of Los Angeles, Calif., were indicted in Feb. 2012, and charged with conspiracy to transport stolen property and commit access device fraud, and access device fraud. Contella, Cohen and Levi each entered guilty pleas to the indictment without the benefit of plea agreements in Jan. 2013. Ferdman entered a similar guilty plea in Feb. 2013.
In entering their guilty pleas, the defendants admitted that, in May 2011, they engaged in a scheme to fraudulently obtain high-value cellphones, including smartphones, from Sprint stores, and resell the cellphones in a Van Nuys, Calif., store owned by Cohen and through an on-line store hosted by EBay. The defendants traveled to Sprint stores throughout California, Arizona and New Mexico and fraudulently obtained significant quantities of cellphones by impersonating Sprint customers and the unauthorized use of the customers’ account numbers. They obtained the phones free of cost by instructing store clerks to bill the cost of the phones to the accounts of the unwitting Sprint customers.
According to court filings, from May 10, 2011 through May 16, 2011, Ferdman and Levi traveled to Sprint stores in California, including stores in Fullerton, Los Angeles, Hollywood, San Francisco, Sacramento and Folsom, to perpetuate their fraudulent scheme. From May 21, 2011 to May 24, 2011, Ferdman and Contella traveled to Sprint stores in Arizona and New Mexico for that same purpose. During this period, Levi wired cash to Ferdman and Contella; Ferdman sent cellphones to Levi via Federal Express; Levi delivered the cellphones to Cohen; and Cohen sold the cellphones. On May 25, 2011, Ferdman, Contella and Levi fraudulently obtained 13 smartphones from a Sprint store in Albuquerque through the unauthorized use of a Sprint customer’s account number. That same day, Ferdman, Contella and Levi attempted to purchase an additional six smartphones from a Sprint store in Albuquerque.
Contella was sentenced on Sept. 13, 2014, to two years of probation and was ordered to pay $21,777.00 in restitution in restitution to the victims of his criminal activity. Ferdman was sentenced on Nov. 8, 2013, to 15 months in federal prison followed by three years of supervised release. Cohen was sentenced on May 6, 2014, to three months in prison followed by three years of supervised release, and was ordered to pay a $17,090.13 fine. Ferdman and Cohen also were ordered to pay, jointly with their co-defendants, $45,715.59 in restitution to the victims of the criminal scheme.
The case was investigated by the U.S. Secret Service and the Albuquerque Police Department’s Organized Crime Unit, and was prosecuted by Assistant U.S. Attorneys Sean J. Sullivan and Stephen R. Kotz.
California Man Pleads Guilty to Marijuana and Money Laundering ConspiraciesRead 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 James Parish, 31, of Carlsbad, California pleaded guilty to conspiracy to distribute 100 kilograms or more of marijuana and money laundering conspiracy, before U.S. District Judge Richard J. Arcara. The marijuana distribution conspiracy carries a maximum penalty of 40 years in prison and a $5 million fine, and the money laundering conspiracy charge carries a maximum penalty of 20 years in prison and a $2,000,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between January and September 2014 the defendant sent packages of marijuana from the Carlsbad, California area to Western New York, where the marijuana was then distributed and more than $800,000 in proceeds from the marijuana distribution shipped back from Western New York to the defendant in California
The investigation featured numerous successful law enforcement interceptions and discoveries. For example, On August 21, 2014, the Drug Enforcement Administration (DEA) seized a package that a person was attempting to ship at a local shipping company. The package contained $66,705 in United States currency. On that same date, the DEA seized a second package containing $77,000 in United States currency that was shipped to a shipping company in Carlsbad, California. On September 26, 2014, DEA agents executed a search warrant at co-conspirator Benjamin Golembiewski’s Buffalo residence and seized $224,123 in United States currency.
Regarding seizures of drugs, on September 18, 2014, Parish dropped off two large boxes at the shipping company in Carlsbad to be shipped to the Buffalo area. These boxes were seized by the DEA and found to contain a total of 30 pounds of marijuana.
The investigation concluded on September 30, 2014, when the defendant traveled from California to Buffalo to collect approximately $600,000 in payments for the shipped marijuana. Parish, who was arrested at the Buffalo Niagara International Airport, was planning to stay at a hotel on Genesee St. in Cheektowaga. The investigation determined that Parish shipped a box to the hotel in his name, and upon locating the box, discovered that it contained an AirSoft Gun, a taser, a bullet proof vest, a knife, handcuffs, a flashlight, a tourniquet strap, a bandage kit and a GPS tracking device.
Defendant Golembiewski previously pleaded guilty to money laundering conspiracy and is pending sentencing.
The plea is the result of an investigation on the part of DEA Special Agents, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, and the Niagara Frontier Transportation Authority Police, under the direction of Chief George W. Gast.
Sentencing is scheduled for December 9, 2015, at 1:00 before Judge Arcara.Bullhead City Physician to Pay $207,000 to Resolve False Claims AllegationsRead the Press Release
PHOENIX – Dr. Bashir Azher, M.D., 69, an Arizona-licensed physician practicing in Bullhead City, Ariz., has agreed to pay the United States $207,988 to resolve civil allegations that he violated the federal False Claims Act by submitting false bills to Medicare for prostate laser ablation procedures, commonly known as Green Light prostatectomies.
“This settlement is the latest of our office’s longstanding and ongoing efforts to protect taxpayer dollars and recoup them when misappropriated,” said United States Attorney John S. Leonardo.
“When physicians fail to meet professionally recognized standards of care while providing medically unnecessary procedures, taxpayers’ dollars are wasted and the public’s trust in the medical profession is at risk,” said Timothy B. DeFrancesca, Acting Special Agent in Charge for the Los Angeles Region of the United States Department of Health and Human Services, Office of Inspector General. “Our agents will continue to hold health care providers accountable for improper claims.”
The settlement agreement resolves allegations that from February 2006 through July 2014, Dr. Azher knowingly submitted materially false claims for reimbursement for prostate laser ablation procedures that were too short to generate a therapeutic benefit, failed to meet professionally recognized standards of care, were medically unnecessary, and/or violated applicable Medicare regulations. The settlement is neither an admission of liability by Dr. Azher nor a concession by the United States that its claims are unfounded.
The settlement resolves a lawsuit filed in June 2014 by Dr. Arnaldo Trabucco, M.D., under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained. The case was filed in the United States District Court for the District of Arizona and is captioned United States ex rel. Trabucco v. PHC Fort Mohave, Inc., et al. (CV-14-8094-PCT-DGC). Dr. Trabucco will receive a share of the settlement payment that resolves the qui tam suit he filed.
The case was investigated by the United States Attorney’s Office for the District of Arizona and the United States Department of Health and Human Services, Office of Inspector General.
CASE NUMBER: CV-14-8094-PCT-DGC
RELEASE NUMBER: 2015-061_ Azher
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Buffalo Man Found Guilty of Murdering Girlfriend and Setting Fires for Insurance BenefitsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal jury has returned a guilty verdict on all ten counts against Ronald Epps, 47, of Amherst, N.Y., The charges included wire fraud, mail fraud, arson, possession of Molotov Cocktails, maintaining a premises for drug trafficking, felon in possession of a firearm and possession of a firearm in furtherance of drug trafficking. The charges carry a mandatory minimum penalty of 35 years in prison, a maximum of life, a $1,500,000 fine or both.“Today’s verdict is believed to be the first instance where this Office has used the federal fraud laws to convict a murderer,” said U.S. Attorney Hochul. “This Office will continue to use all of the resources at our disposal to rid our streets of dangerous predators.”
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that the defendant was accused of murdering his fiancée, Angela Moss, on August 27, 2009 in order to collect on the victim=s life insurance policy which listed Epps as the sole beneficiary. Ronald Epps and Angela Moss were engaged to be married and lived together on Cascade Drive in the Town of Amherst. Previously, on July 2, 2009, Epps and Moss went to a State Farm Insurance branch to make changes to Moss= life insurance policy. At the time, Epps was a minor beneficiary. The $100,000 policy was changed, making the defendant the sole beneficiary.On August 27, 2009, Moss left her place of employment at Absolut Care on Armor Road in Orchard Park at 11:00 p.m. The victim was last seen getting into the passenger seat of her car. Moss= body was discovered at 6:00 a.m. the following morning on California Road by colleagues heading into work. The prosecution argued that the defendant waited in the victim=s car then drove to California Road where Epps shot Moss once in the back of her head and left her body on the side of the road. The victim=s car was also found abandoned nearby.
On September 1, 2009, Epps filed a claim with State Farm Insurance, attempting to collect on Moss=s life insurance policy. To date, the defendant has not received any insurance money related to the policy on the late Ms. Moss.
Following Moss=s murder, the defendant remained in the apartment the two had lived in together. On August 1, 2010, Epps obtained a renter=s insurance policy from State Farm Insurance. The jury found that on October 13, 2010, Epps set fire to the vacant apartment next door with Molotov Cocktails. On this occasion, the damage to the defendant=s apartment was minimal. On October 15, the defendant also fire to his own apartment. On May 31, 2011, Epps received $3,769 from State Farm Insurance for damages to his property.
The jury also found the defendant guilty of using his apartment for distributing cocaine. Several witnesses testified that they purchased cocaine and marijuana from the defendant at 21 Cascade Drive. Amherst police officers testified that they seized cocaine, pills, and drug paraphernalia from the defendant’s residence on August 25, 2010.
The case was the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Steven Dickey, the Orchard Park Police Department, under the direction of Chief Michael Pacholec, and the Amherst Police Department, under the direction of Chief John Askey.
Sentencing is scheduled for December 10, 2015, at 12:30 p.m. before Judge Richard J. Arcara.
Brockport Man Arrested for Witness Tampering While Awaiting Sentencing for Mail Fraud and Forging Treasury ChecksRead 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 STEVEN RAY, 49, of Brockport, NY, was arrested and charged by indictment with tampering with a witness. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the indictment charges RAY with knowingly intimidating, threatening, and corruptly persuading a witness to prepare and sign an affidavit containing what the defendant knew to be false statements with the intent to influence, delay, and prevent the testimony of that witness in RAY’S pending sentencing in Federal Court.In February, RAY pleaded guilty to one count of mail fraud and one count of forging treasury checks. At that time, RAY admitted to cashing more than 120 forged United States Treasury Checks worth more than $400,000. The checks were stolen from the New York City Area as well as from other parts of the United States. Ray would get the stolen checks mailed to him via the United States Postal Service at his Brockport home.
During that investigation, federal agents identified at least 13 area bank accounts controlled by the defendant under various names. The defendant would take the stolen Treasury Checks he received by mail and then deposit them across these accounts. Many of the checks belonged to people who received Social Security payments, tax refunds, and other money drawn from the United States Treasury to help the intended recipients. As a result of the defendant’s scheme to defraud, Ray obtained more than $405,000 to which he was not otherwise entitled.
The conduct in the new indictment is alleged to have occurred while RAY was out of custody awaiting sentencing.
The indictment is the culmination of an investigation on the part of Inspectors from the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector In Charge of the Boston Division, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the Direction of Special Agent in Charge of the New York Field Office, Shantelle P. Kitchen.
The defendant was arraigned yesterday afternoon before U.S. Magistrate Judge Marian W. Payson and was ordered held pending a detention hearing. The hearing is scheduled for August 21, 2015 at 2:30 p.m. before U.S. Magistrate Judge Marian W. Payson.
The fact that the defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Barbour County man convicted of marijuana traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Shawn Shannon, 54, of Belington, West Virginia, was convicted today of marijuana trafficking, United States Attorney William J. Ihlenfeld, II, announced.Shannon was one of four individuals charged in March 2015 in a 16-count federal indictment with participating in an extensive oxycodone and marijuana trafficking operation. Specifically, Shannon distributed marijuana in Barbour County, West Virginia.
Shannon pled guilty today to one count of “Distribution of Marijuana.” He faces up to five 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.
Defendants Roy Melvin Isner, 62, and Mark Wesley Lambert, 39, both of Elkins, West Virginia, were each pled guilty to marijuana trafficking charges in April 2015. The fourth defendant, Chad Allen Workman, 37, of Beverly, West Virginia is currently scheduled for trial in September 2015.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force led the investigation. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, the Internal Revenue Service – Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives also investigated.
U.S. Magistrate Judge John S. Kaull presided.
Baltimore Man Sentenced to 9 Years in Prison for a Drug Distribution Conspiracy and for Bribing Letter Carriers to Divert Packages Containing MarijuanaRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Gary Coleman, a/k/a “Short,” age 44, of Baltimore, today to nine years in prison, followed by five years of supervised release, in connection with a bribery and drug conspiracy in which he bribed letter carriers to divert packages of marijuana sent through the mail and deliver the packages to Coleman and other co-conspirators. Judge Motz also ordered Coleman to forfeit $14,700.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City Sheriff John Anderson.
“Today’s sentencing confirms that anyone using the U.S. mail to distribute marijuana or any other illegal narcotics will be brought to justice and held accountable,” said David Bowers, Acting Inspector in Charge, U.S. Postal Inspection Service-Washington Division. “We’re grateful to our law enforcement partners who helped with this investigation and look forward to their continued support to protect America’s postal system from criminal activity.”
According to his plea agreement, Coleman and others conspired with letter carriers Antoinette McDaniels and Hilary Gainey, paying them bribes in exchange for diverting packages containing marijuana and delivering those packages to Coleman and other co-conspirators.
Specifically, Coleman admitted that in February 2014 and April 2014, he was introduced to Antoinette McDaniels and Hilary Gainey, respectively, while they were employed by the U.S. Postal Service as letter carriers. A co-conspirator told Coleman that McDaniels and Gainey would divert specific packages sent through the U.S. mail that contained marijuana, and deliver those packages to co-conspirators, in exchange for a bribe of $100 per parcel. Coleman, McDaniels and Gainey agreed to this arrangement and Coleman paid them up to $100 for each parcel diverted and delivered to him or a co-conspirator. According to court documents the packages were sent via the U.S. mail from Arizona, California, Florida, and elsewhere, to addresses along McDaniels’ route in Baltimore and Gainey’s route in Columbia, Maryland.
According to their plea agreements, Gainey and McDaniels delivered approximately 100 packages and 30 packages, respectively, to Coleman and other co-conspirators. Gainey was paid a total of $10,000 by the co-conspirators and McDaniels was paid a total of $4,700 by the co-conspirators. Coleman admitted that during his participation in the conspiracy, between 100 and 400 kilograms of marijuana were distributed.
McDaniels and Gainey previously pleaded guilty to their roles in the conspiracy. They each face a maximum sentence of five years in prison for the bribery conspiracy and two years in prison for bribery. McDaniels faces a maximum of 20 years in prison and Gainey faces a mandatory five years and up to 40 years in prison, for conspiracy to distribute and possess with intent to distribute marijuana. U.S. District Judge J. Frederick Motz has scheduled sentencing for McDaniels on August 28, 2015, and for Gainey on August 21, 2015.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, DEA, Maryland State Police, Baltimore City Police Department and Baltimore City Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Jason D. Medinger, who is prosecuting the case.
Baltimore Man Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
Baltimore, Maryland – Gerald Lee Banks, age 40, of Baltimore, pleaded guilty today to conspiracy to commit sex trafficking by force, fraud and coercion.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to Banks’ plea agreement, from September through May 2013, Banks conspired with Travis Lamont Foote, a/k/a “Cash,” to commit sex trafficking by force fraud and coercion.
For example, in September 2012, Jane Doe 1, an 18 year old woman living in Florida, had dropped out of high school and was trying to get back into school or find employment. Foote contacted Jane Doe 1 on Facebook, using a female online identity he created, “Cash Treasure,” and told Jane Doe 1 that “she” knew someone who would be able to assist her. Foote then reached out to Jane Doe 1, as a friend of “Cash Treasure,” and lured her to Baltimore stating that he could help Jane Doe 1 to get back into high school and get a diploma. After Jane Doe 1 agreed, Foote paid for an airline ticket for Jane Doe 1 to fly from Florida to Baltimore sometime in September.
Banks and Foote met Jane Doe 1 at the airport and drove her to a motel in Catonsville, where they had rented four rooms, three of which were occupied by other females. It was then that Jane Doe 1 learned that Banks and Foote were running a prostitution business and that they expected Jane Doe 1 to work for them. At first Jane Doe 1 refused, but eventually she began having sex with men for money, with all of the proceeds going to Banks and Foote.
During this time of the conspiracy, Banks and Foote used internet websites to advertise the women who worked for them, including Jane Doe 1, as available for prostitution. All of the proceeds were paid to Banks and Foote. On November 14, 2012, an undercover detective from the Baltimore County Police Department Vice Unit scheduled a “date” with one of the prostitutes advertised by Banks and Foote. The undercover detective met the woman at the agreed upon time and place and she was arrested. Jane Doe 1 was also arrested and officers located and attempted to arrest Foote but he struggled and ran away.
On May 16, 2013, a Baltimore County Police officer conducted a traffic stop of a vehicle being operated by Banks, with Foote and an 18 year old female, Jane Doe 2, as passengers in the car. Banks, Foote and Jane Doe 2 were arrested when officers recovered a plastic bag containing 16 smaller bags of crack cocaine. Jane Doe 2 was listed in police records as a possible runaway and investigation showed that Jane Doe 2 began working as a prostitute for Banks and Foote in April 2013. As a result of internet advertisements placed by Banks and Foote, Jane Doe 2 had approximately 100 “dates” with men to engage in commercial sex acts and all of the proceeds were paid to Banks. Jane Doe 2 told law enforcement that earlier in May 2013, Foote beat and choked her when she tried to leave the motel after refusing a request from one of the men. Banks stopped Foote from choking her, but was aware that Foote physically forced Jane Doe 2 back to the hotel room.
Shortly after his arrest on May 16, 2013, Banks made bail and was released. Banks did not attend further court proceedings and an arrest warrant was issued in October 2013. On January 9, 2014, federal charges were filed against Banks, who evaded authorities until his arrest in October 2014.
Banks faces a maximum sentenced of life in prison, and will also be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). U.S. District Judge James K. Bredar has scheduled sentencing for November 18, 2015, at 3:00 p.m. Banks remains detained.
Travis Lamont Foote, a/k/a “Cash,” age 31, of Baltimore, previously pleaded guilty to his role in the sex trafficking conspiracy and was sentenced to 12 years in prison.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Bainbridge Drug Dealer Sentenced to 25 YearsRead the Press Release
Leonard Hoskins, aged 42, of Bainbridge, Georgia, was sentenced on August 18, 2015 to serve 25 years (300 months) in federal prison for possessing methamphetamine with the intent to distribute it. The sentence was handed down by the Honorable Leslie J. Abrams, United States District Court Judge, in Albany, Georgia.
Mr. Hoskins entered a plea of guilty to the charge on March 26, 2015. As a part of his plea agreement, Mr. Hoskins admitted that during 2013 and 2014, he obtained multiple ounces of methamphetamine “Ice” from a source in the Atlanta, Georgia area and distributed it in Bainbridge, Georgia. During a traffic stop for speeding on I-75 on June 6, 2014, Mr. Hoskins was found to be in possession of one pound of methamphetamine and $3,433.00 in U.S. currency.
“Methamphetamine has become a modern scourge in South Georgia, the Middle District of Georgia, and the country as a whole. A pound of methamphetamine is a large amount, and merits the equally large sentence of 25 years meted out to Mr. Hoskins. I commend the local, state and federal law enforcement authorities whose good work prevented the distribution of this significant quantity of illegal drugs into our community as well as removing Mr. Hoskins from the drug business for the next quarter century,” said United States Attorney Michael J. Moore.
“The success of this investigation speaks of the continued collaboration between our local, state and federal law enforcement partners in targeting and dismantling meth distribution rings that profit by spreading their poison in our communities. Strong partnerships such as this one underscore the power of our combined forces and demonstrate our collective impact on the war against meth,” said Daniel R. Salter, Special Agent in Charge of the U.S. Drug Enforcement Administration’s Atlanta Field Division.”
The case was investigated by the Bainbridge Department of Public Safety, Crisp County Sheriff’s Office, the Georgia State Patrol and the U.S. Drug Enforcement Administration. Assistant United States Attorney Leah E. McEwen represented the Government in the prosecution of the case.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Atlanta Man Convicted of Meth ConspiracyRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina. United States Attorney Bill Nettles announced today that a federal jury convicted Alfredo De Jusus Ramirez this afternoon of conspiracy to possess with intent to distribute and distribution of 50 grams or more of actual methamphetamine and 500 grams or more of a mixture containing methamphetamine. United States District Judge J. Michelle Childs had the U.S. Marshal take Mr. Ramirez into custody after the jury returned its verdict, and will sentence Mr. Ramirez after a presentence investigation report has been prepared by the United States Probation Office.
Witnesses testified that Mr. Ramirez was the source of supply for a group of Bamberg meth dealers, who supplied cohorts including members of a motorcycle gang. One witness testified that Mr. Ramirez brought the meth from the Texas area in sealed bean cans. The Drug Enforcement Administration tested the methamphetamine at 96 to 100 percent pure, which reflects that the meth was made in a “super lab” south of the Texas border. The street-name for meth of this purity is “ICE.”
The case was investigated by the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Jim May and Beth Drake.
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Associate of Decavalcante Crime Family Admits Distribution of Cocaine, Running A Prostitution Operation & Possessing Weapon as Convicted FelonRead the Press Release
NEWARK, N.J. – An associate of the DeCavalcante crime family of La Cosa Nostra today admitted his role in distributing more than 500 grams of cocaine, running a prostitution operation and possessing a shotgun as a convicted felon, U.S. Attorney Paul J. Fishman announced.
Anthony Stango, 34, of Brick, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with: the sale of between 500 grams to 1.5 kilos of cocaine; use of the telephone in interstate commerce to conduct a prostitution operation; and possession of a firearm by a convicted felon.
According to documents filed in this case and statements made in court:
Stango was arrested March 12, 2015, as part of a sweep of 10 members of the DeCavalcante crime family, which operated in New Jersey and elsewhere. The crime family engaged in numerous offenses, including fraud, distribution of controlled substances, prostitution, gambling, the sale of stolen and contraband goods, murder, assault, extortion, and other crimes of violence.
Stango admitted conducting a drug operation that, on eight separate occasions from December 2014 to March 2015, sold between 500 grams to 1.5 kilos of cocaine to an undercover law enforcement officer. During that same time period, Stango worked to set up a prostitution operation in New Jersey. Recorded conversations reflected discussions he had with a conspirator (identified as “CS”) who at the time was living in Nevada. Stango advised CS that he had already talked to one or more prostitutes about the details of the operation, their fees and the conditions under which the women would be providing services. Stango also admitted possessing an H&R Pardner 12 gauge pump action shotgun, while being a convicted felon.
The count of sale of 500 grams to 1.5 kilos of cocaine carries a mandatory minimum of five years in prison and a maximum potential penalty of 40 years in prison and a $5 million fine; the count of use of the telephone in interstate commerce to conduct a prostitution operation carries a maximum potential penalty of five years in prison and a $250,000 fine; and the count of possession of a firearm by a convicted felon carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 26, 2015.
U.S. Attorney Fishman credited the members of the FBI’s Organized Crime Task Force under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter Arsenault; the Bayonne Police Department, under the direction of Chief Drew Niekrasz; and the N.J. State Commission of Investigation, under the direction of Chairman Joseph F. Scancarella, with the investigation leading to today’s guilty plea. He also thanked the FBI’s Las Vegas office and the Union County Prosecutor’s Office for their roles in the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley Sr. and Assistant U.S. Attorney James Donnelly of the Organized Crime/Gangs Strike Force.
Defense counsel: Gary Mizzone Esq., Little Falls, New Jersey
Download Stango Anthony Information
Artesia Man Pleads Guilty to Violating Federal Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Joe Anthony Reza, 33, of Artesia, N.M., pled guilty this morning in federal court in Las Cruces, N.M., to violating federal firearms and drug trafficking laws. Under the terms of his plea agreement, Reza will be sentenced to 120 months in prison followed by a term of supervised release to be determined by the court.
Reza was arrested on June 6, 2015, on a criminal complaint charging him with distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime on Feb. 24, 2015, in Eddy County, N.M. According to the complaint, agents with the Pecos Valley Drug Task Force executed a search warrant at Reza’s residence on Feb. 24, 2015, and seized approximately 117.93 grams of methamphetamine, three firearms, a marijuana plant and digital scales. At the time, Reza was arrested on state charges which were later dismissed in favor of federal prosecution.
During today’s proceedings, Reza pled guilty to a felony information charging him with possessing methamphetamine with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. In entering his guilty plea, Reza admitted that on Feb. 24, 2015, law enforcement officers seized 117 grams of methamphetamine and a handgun from his residence. Reza further admitted that he possessed the handgun for protection of his drug trafficking activities.
Reza remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force with assistance from the 5th Judicial District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the 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.
Ardmore Woman Sentenced to 60 Months Probation, $86,000 Restitution for Theft of Government FundsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that PATRICIA ANN RABORN age 56, of Ardmore, Oklahoma, was sentenced to 5 years of probation and ordered to pay $86,289.50 in restitution for Theft of Government Funds, in violation of Title 18, United States Code, Sections 641 and 2.
The charge arose from an investigation by the Social Security Administration, Office of Inspector General. The defendant pled guilty in January, 2015.
The Indictment alleged that beginning in or around July 2006, and continuing until in or around February, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and willfully embezzle, steal, and purloin money of the Social Security Administration, namely, Social Security Disability Income payments to which she knew she was not entitled, having a value in excess of $1,000.00. The Indictment further alleged that beginning in or around March 2005, and continuing until in or around October, 2012, the defendant had knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Rob Wallace represented the United States.
Ambulance Company Owner, Operator and Managers Found Guilty in Medicare Fraud ConspiracyRead the Press Release
A federal jury in Los Angeles late yesterday convicted the former owner, operator and managers of a Southern California ambulance company of health care fraud charges in connection with a Medicare fraud scheme of at least $2.4 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Acting Special Agent in Charge Steve Ryan of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Los Angeles Region and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division made the announcement.
Yaroslav Proshak, aka Steven Proshak, 47, of Valley Village, California; Emilia Zverev, 58, of Van Nuys, California; and Sharetta Michelle Wallace, 37, of Inglewood, California, each were convicted of one count of conspiracy to commit health care fraud and five counts of health care fraud following a two-week trial. Proshak’s sentencing is scheduled for Nov. 24, 2015, and Zverev’s and Wallace’s sentencing is scheduled for Nov. 30, 2015, all before U.S. District Judge S. James Otero of the Central District of California, who presided over the trial.
Proshak owned and operated ProMed Medical Transportation, an ambulance transportation company in the greater Los Angeles area that provided non-emergency ambulance transportation services to Medicare beneficiaries, many of whom were dialysis patients. Zverev was the billing manager, and Wallace supervised ProMed’s emergency medical technicians (EMTs).
The evidence at trial demonstrated that, between May 2008, and October 2010, the defendants conspired to bill Medicare for ambulance transportation services for individuals whom the defendants knew did not need such services. In addition, the evidence showed that the defendants instructed EMTs who worked at ProMed to conceal the true medical conditions of patients they were transporting by altering requisite paperwork and creating fraudulent documents to justify the transportation services.
According to evidence admitted at trial, during the course of the conspiracy, ProMed submitted at least $2.4 million in false and fraudulent claims to Medicare for medically unnecessary transportation services. Medicare paid at least $1.2 million of those claims.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case was investigated by the FBI and HHS-OIG. The case was prosecuted by Trial Attorneys Blanca Quintero, Fred Medick and Ritesh Srivastava of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Albuquerque Man Pleads Guilty to Armed Robbery of a McDonald’s RestaurantRead the Press Release
ALBUQUERQUE – Pablo Salgado-Cervantes, 25, of Albuquerque, N.M., pleaded guilty today in federal court to violating the Hobbs Act and the federal firearms laws by brandishing a firearm during an armed robbery of a McDonald’s restaurant on Sept. 3, 2014.
Salgado-Cervantes was charged on Sept. 4, 2014, in a criminal complaint with robbing the McDonald’s restaurant located at 5900 Menaul NE in Albuquerque at gunpoint on three separate occasions: July 1, 2014, July 9, 2014 and Sept. 3, 2014. The criminal complaint also charged him with robbing the McDonald’s restaurant located at 8315 Montgomery Blvd. NE in Albuquerque at gunpoint on July 9, 2014.
On Jan. 21, 2015, Salgado-Cervantes was charged in a five-count indictment with four counts of violating the Hobbs Act by robbing a business involved in interstate commerce and one count of brandishing firearms during crimes of violence.
Salgado-Cervantes was arrested on the federal charges on Feb. 9, 2015, after he was transferred into federal custody from state custody where he was facing related state charges. The state charges were subsequently dismissed in favor of federal prosecution.
During today’s proceedings, Salgado-Cervantes pled guilty to Counts 4 and 5 of the indictment. In entering his guilty plea, Salgado-Cervantes admitted that on Sept. 3, 2014, he robbed the McDonald’s restaurant located at 5900 Menaul NE. He also admitted brandishing a firearm to coerce an employee to give him money from the safe. Salgado-Cervantes further admitted hitting the employee with the butt of his firearm before fleeing from the restaurant with the cash he stole.
At sentencing, Salgado-Cervantes faces a maximum penalty of 20 years in prison for the Hobbs Act violation. He faces a mandatory minimum of seven years in prison on the firearms charge which must be served consecutive to any sentence imposed on the Hobbs Act charge. Salgado-Cervantes remains in custody pending sentencing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Presiliano Torrez is prosecuting the case.
Albuquerque Man Charged with Violating the Hobbs Act and Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Raiff Hayes, 24, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with violating the Hobbs Act and federal firearms laws by robbing a commercial business at gunpoint. Hayes remains in federal custody pending a detention hearing scheduled for tomorrow morning.
The criminal complaint, which was filed on Aug. 5, 2015, alleges that Hayes robbed ABQ Interlock, a business located at 2444 Menaul Blvd. NE in Albuquerque on the afternoon of July 27, 2015. According to surveillance video from ABQ Interlock, Hayes allegedly pointed a firearm at two employees, fired a shot into the ceiling, placed a bag on the counter, and demanded that the employees place cash into his bag. On July 28, 2015, one of the employees allegedly identified Hayes as the robber from a photo array.
Hayes was arrested on the federal charges on Aug. 18, 2015, after he was transferred to federal custody from state custody where he was being held on related state charges.
If convicted on the Hobbs Act charge, Hayes faces a statutory maximum penalty of 20 years in federal prison. If convicted of discharging a firearm during a crime of violence, Hayes faces a statutory mandatory minimum of ten years that must be served consecutive to any sentence imposed on the Hobbs Act charge. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the ATF office in Albuquerque and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Norman Cairns is prosecuting the case.