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23 September 2015
Meth Trafficker Receives over 12 Years in Prison for Fresno-Based Methamphetamine ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MANUEL OMAR MINJAREZ, age 27, of Fresno, California, and currently a resident of Houma, Louisiana, was sentenced today after pleading guilty to a three-count Indictment for conspiracy to distribute methamphetamine and having methamphetamine mailed to him from Fresno.
U.S. District Judge Ivan L.R. Lemelle sentenced MINJAREZ to 151 months in prison, to be followed by 6 years of supervised release. Counts 2 and 3 charged MINJAREZ with using telecommunications facilities and the U.S. Mail in furtherance of a drug trafficking conspiracy. Judge Lemelle sentenced MINJAREZ to 48 months in prison, to be followed by 1 year of supervised release as to each count. The judge ordered all of the sentences to run concurrent.
According to court documents, this case arose out of an investigation into methamphetamine trafficking that was being conducted by agents of the Drug Enforcement Administration (DEA) and the United States Postal Inspection Service (USPIS) in Fresno during the summer of 2014. In July 2014, agents learned through a court-authorized wiretap that members of a Fresno-based methamphetamine trafficking organization were mailing methamphetamine to a drug dealer in Houma. DEA agents and Postal Inspectors in Fresno coordinated with their counterparts in the New Orleans offices for the DEA and the USPIS to further investigate the Houma-based arm of this drug conspiracy. Postal Inspectors in Houma subsequently intercepted a package containing almost one pound of methamphetamine on July 18, 2014. With the assistance of the Louisiana State Police and the Terrebonne Narcotics Task Force, DEA Agents and US Postal Inspectors determined that MINJAREZ was the intended recipient of the package.
As the investigation continued, DEA Agents intercepted additional calls during July 2014 in which MINJAREZ requested more methamphetamine to be mailed from the Fresno cell of this drug trafficking conspiracy. USPS Postal Inspectors also determined that MINJAREZ had previously received another package of methamphetamine on July 10, 2014, that weighed approximately one pound and eleven ounces. MINJAREZ was arrested on July 30, 2014, by a Texas Department of Public Safety Trooper in Sutton County, Texas. Through the assistance of Texas state authorities, MINJAREZ was removed to federal custody to face the federal indictment in New Orleans.
U.S. Attorney Polite praised the work of the Fresno offices for the DEA and USPIS, the DEA New Orleans Office, the USPIS New Orleans Office, the Louisiana State Police, and the Terrebonne Narcotics Task Force in investigating this matter. U.S. Attorney Polite extended his thanks to the Texas Department of Public Safety, the Sutton County, Texas, Sheriff’s Office, the District Attorney’s Office for the Texas 112th Judicial District, and the DEA Office in Del Rio, Texas, for their assistance in prosecuting this case. Assistant United States Attorneys Matthew R. Payne and Theodore R. Carter, III, were in charge of the prosecution.
Martinsburg man sentenced for lying on loan applicationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven A. Crites, 44, of Martinsburg, was sentenced to one day in prison followed by one year of supervised release for making a false statement on a loan application, United States Attorney William J. Ihlenfeld, II, announced.
Crites applied for a loan with Wells Fargo Bank and falsely indicated that his monthly income was $29,000. In fact, his monthly income was $2,833.33. He pled guilty in March 21015 to one count of “False Statement on Loan Application.”
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.
Chief U.S. District Judge Gina M. Groh presided.Man Arrested in Penn-North One Week After Baltimore Riots Guilty of Federal Gun ChargeRead the Press Release
Baltimore, Maryland –Robert “Meech” Tucker, age 23, of Baltimore, pleaded guilty today to the federal crime of possession of a gun by a previously convicted felon.
The guilty plea 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.
“Mr. Tucker threw a loaded gun on the ground and it fired, then he pretended to be injured. His actions incited misguided bystanders who attacked innocent police officers,” said U.S. Attorney Rod J. Rosenstein. “This case shows the challenges that police officers sometimes face as they work to protect the community and save lives.”
According to court documents, on May 4, 2015, a citizen notified police officers that a man was armed with a handgun in the Penn-North section of Baltimore, near a pharmacy that was burned during street riots the previous week. Officers alerted the CitiWatch camera operators, and a camera operator located Tucker, who matched the description.
The camera operator confirmed that Tucker was displaying characteristics of an armed gunman. Officers then drove their marked patrol car into the area. When the patrol car stopped, Tucker ran. Tucker then removed a handgun from his waistband area and threw it to the ground, causing it to fire. Fortunately no one was hit by the bullet. Police arrested Tucker and recovered a .357 Magnum revolver handgun loaded with two live rounds and one spent cartridge casing.
Meanwhile, bystanders wrongly shouted that a police officer shot Tucker in the back, people yelled and threw bricks and bottles at police officers, and a television network mistakenly reported that the police had shot Tucker.
Tucker was transported to the hospital, but he was not injured.
Tucker also admitted that five weeks earlier, on March 29, 2015, he committed an assault in violation of state law. In that incident, CitiWatch cameras in the area of Penn-North recorded Tucker striking a man in the back of the head with his fist. The man fell to the ground and was injured. The man was taken to the hospital and treated for his injury. The camera operator continued to monitor Tucker until he was located by Baltimore Police officers and arrested.
If the Court accepts the plea agreement, Tucker will be sentenced to 42 months in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for December 14, 2015 at 11:00 a.m. Tucker remains detained.
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 U.S. Attorney Matthew Hoff, a Baltimore Assistant State’s Attorney assigned to handle federal Exile cases, who is prosecuting the case.
Local Daycare Worker and Brownsville Man Convicted of Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – The daycare worker indicted along with another man less than a month ago on production of child pornography charges have both been convicted as charged, announced U.S. Attorney Kenneth Magidson. Christina Cortez, 38, of Corpus Christi and Matthew Harbin, 29, of Brownsville, pleaded guilty today.
The court heard that the case began after Harbin was identified as providing images to an undercover officer in England. Using the email address [email protected], Harbin provided three photos of a child clothed and not sexually posed, but that appeared to be taken at a daycare facility. Harbin told the undercover officer he had more pictures, wanted to trade and asked the undercover officer if they had a daughter and how young they were “in to.” Harbin later sent five more pictures of what appears to be the same female child, but that were sexually explicit in nature. One image depicts the child laying down on a blue mat with her dress lifted and her lower body exposed. Other images depicted an adult female’s hand making contact with a child’s private area.
Further investigation revealed Harbin had previously received the images from Cortez in July 2014. In their communications, Cortez claimed to work at a daycare facility where she produced the images. Cortez admitted taking and sending the images of the same female child involved in sexually explicit conduct to Harbin. The child’s genitals appear to be the focus of all three of the aforementioned images, one of which includes the child fondling herself.
In their communications, both Harbin and Cortez indicated a desire to engage with children. During one conversation, Cortez told Harbin “I would love to watch us with her. 2 & half.”
The court also heard that Harbin is a convicted sex offender from Alabama. He was a fugitive living in Brownsville, wanted on a federal arrest warrant for child pornography from the Northern District of Alabama. Agents seized various electronic devices from Harbin on which forensic analysis revealed more than 3500 images and more than 360 videos of child pornography.
Senior U.S. District Judge Hayden Head accepted the guilty plea today and set sentencing for Dec. 9, 2015. At that time, both Cortez and Harbin face a minimum of 15 and up to 30 years in federal prison and a possible $250,00 maximum fine. Upon completion of any prison term imposed, both also face a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Both Cortez and Harbin were arrested on federal charges in August 2015 and have been in custody since that time where they will remain pending their sentencing hearing.
The charges are the result of an investigation by Homeland Security Investigations and the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Lincoln Man Pleads Guilty to Tax Evasion and Weapons PossessionRead the Press Release
HELENA – Dennis Peiker, 61, of Lincoln, Montana, pleaded guilty today to one count of tax evasion and two counts of felon in possession of a firearm. The charges stemmed from two indictments arising from years of tax evasion and firearms found at Peiker’s residence in 2011 and 2015. Peiker appeared before District Court Judge Charles Lovell in Helena to enter the guilty pleas.
The maximum sentence on the tax evasion charge is five years imprisonment, a $250,000 fine, and three years of supervised release. Each charge of felon in possession of a firearm carries a maximum sentence of 10 years imprisonment, a $250,000 fine, and three years of supervised release. Peiker was convicted in August of this year of the manufacture of more than 100 marijuana plants in connection with the same incident that lead to the 2015 firearms possession charge. Peiker also has a prior conviction for two counts of tax fraud in 1999, which made it illegal for him to possess firearms.
In addition to Peiker’s guilty plea to the three counts in the indictments, Peiker also has agreed to pay restitution amounting to nearly $410,000 in back taxes owed to the Internal Revenue Service for the tax years 2002 to 2009.
Had the case proceeded to trial, the United States was prepared to prove that following his 1999 conviction for tax fraud, Peiker failed to make tax payments for the years 2002-2009. As part of his attempted evasion, Peiker concealed the true nature of his assets, made false statements to IRS officials, and placed funds and property in the names of others. With respect to the firearms charges, the United States expected to prove that on two separate occasions Peiker illegally possessed a semi-automatic pistol, two single-shot rifles, three automatic rifles, a shotgun and ammunition. Judge Lovell set a sentencing date of April 14, 2016 in Helena.
The case was investigated by the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Lewis and Clark County Sheriff’s Office as part of the Missouri River Drug Task Force. The case was prosecuted by Assistant U.S. Attorneys Paulette Stewart and Chad Spraker and Trial Attorney John Mulcahy of the DOJ’s Tax Division.
Kodiak Man Sentenced to 30 Months in Prison for Assault Committed on Coast Guard BaseRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Kodiak man was sentenced in federal court in Anchorage for one count of assault resulting in serious bodily injury. Michael Ensley, 51, of Kodiak, pled guilty to the offense on June 1, 2015.
Ensley was sentenced today by Chief United States District Court Judge Ralph R. Beistline, to 30 months in prison. Chief Judge Beistline also awarded over $28,000 in restitution to the victims.
According to Assistant U.S. Attorney Bryan Schroder, who prosecuted the case, on February 16, 2015, Ensley entered Coast Guard Base Kodiak, although he had no authorization to be on the base. He then went to the Commissary, where he grabbed the victim by the throat, then knocked him unconscious. Ensley then straddled the unconscious victim, and continued to beat him, causing numerous facial fractures, including the orbital socket. In addition to causing extreme pain, the injuries required multiple surgeries.
Ms. Loeffler commends the U.S. Coast Guard Investigative Service and the Alaska State Troopers for the investigation of this case.
Joplin Man Pleads Guilty to Distributing Child Porn over the InternetRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to distributing and possessing child pornography.
James Allen Crippen, 44, of Joplin, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charges contained in a Nov. 5, 2014, federal indictment. Crippen admitted that he distributed child pornography over the Internet on July 20, 2014, and possessed child pornography on Oct. 22, 2014.
On Sept. 24, 2014, members of the Southwest Missouri Cyber Crime Task Force received two Cyber Tips from the National Center for Missing and Exploited Children, which reported that Crippen had uploaded two images of child pornography to his Tumblr account.
Law enforcement officers executed a search warrant at Crippen’s residence and conducted a forensic analysis on the items seized. Investigators discovered 61 child pornography graphics and a multimedia file containing child pornography on Crippen’s desktop computers. Investigators also found child pornography on Crippen’s iPhone.
Crippen must forfeit to the government two desktop computers, an iPhone, two cell phones, 42 optical media disks and other electronic media storage devices that were used to commit the offense.
Under federal statutes, Crippen is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 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.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Southwest Missouri Cybercrimes Task Force, the FBI and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jennings Resident Settles Trespass and Destruction of Cimarron River Public Property ClaimsRead the Press Release
TULSA, Okla.—A Jennings man agreed to pay $4,000 in civil penalties to settle allegations of trespass and destruction of United States Government property on the Cimarron River, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
According to the settlement agreement, Baaron Hagood owns residential property near the Cimarron River adjacent to property owned and maintained by the United States Army Corps of Engineers.
From 2011 through 2014, Hagood bulldozed a 16 foot wide dirt road from his property, across Government property, to the Cimarron River. This resulted in the destruction of numerous mature trees and native grasses. Hagood allowed his guests to use All-Terrain Vehicles on Government property which created trails stretching for over a mile along the river. In addition, Hagood stored a canoe, a fishing boat and fishing equipment on Government property.
The case was handled by Assistant United States Attorney Marianne Hardcastle and Assistant District Counsel for the Army Corps of Engineers, Alexandria Tramel and Jason Chester.
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Indictment: Phone Threat to Bash Lawyer’s Head in Violated Federal LawRead the Press Release
TOPEKA, KAN. - An Ottawa man was indicted Wednesday on a charge of making an interstate phone call threatening to bash in the head of a Kansas City, Mo., lawyer, U.S. Attorney Barry Grissom said.
Rick Draskovich, 52, Ottawa, Kan., is charged with one count of making a threat. The indictment alleges that on Aug. 31, 2015, Draskovich made a phone call in which he said: “I am about to go to the law firm and bash his … head in.” Draskovich went on to suggest the lawyer get a restraining order, adding that, “…honestly that restraining order is not going to help him, just by the time he even understands what’s happening, he’s going to get his head bashed in.”
If convicted, Draskovich faces a maximum penalty of five years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER GRAND JURY INDICTMENTS
Renard Alston, 19, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction, one count of robbery and one count of brandishing a firearm during a robbery. The crimes are alleged to have occurred Aug. 28, 2015, in Topeka, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the charge of unlawful possession of a firearm, a maximum penalty of 20 years and a fine up to $250,000 on the robbery charge, and a penalty of not less than seven years and a fine up to $250,000 on the charge of brandishing a firearm. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Juwuan D. Jackson, 18, who lives on the Fort Riley Army base, is charged with one count of involuntary manslaughter. The indictment alleges that on Sept. 11, 2015, he handled a firearm in a reckless manner resulting in the death of 16-year-old Kenyon Givens, who also lived on Fort Riley.
Jackson initially was charged in a criminal complaint filed Sept. 16, 2015, in U.S. District Court in Topeka.
If convicted, Jackson faces a maximum penalty of eight years in federal prison. Army Criminal Investigations Division and the FBI investigated. Special Assistant U.S. Attorney Robin Graham and Assistant U.S. Attorney Tony Mattivi are prosecuting.
Travis Ray Crum, 43, who is in custody in Topeka, is charged with one count of unlawful possession of a firearm following a felony conviction, and one count of knowingly possessing stolen firearms. The crimes are alleged to have occurred Aug. 27, 2015, in Topeka, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the felon in possession charge and a maximum penalty of 10 years and a fine up to $1 million on the stolen firearms charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.
Phillip Scott Krites, 31, who is in custody in Topeka, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Aug. 22, 2015, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges Pekin Man with Distribution of Child Pornography and Impersonating a U.S. MarshalRead the Press Release
Peoria, Ill. – Late yesterday, a federal grand jury returned a four-count indictment that charges Arthur D. Wheeler, 30, of of the 600 block of Harberts, South Pekin, Ill., with distribution of child pornography and impersonating a federal officer, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois.
Wheeler was previously arrested and charged by criminal complaint on Aug. 24, 2015. Wheeler made his initial appearance in federal court in Peoria before U.S. Magistrate Judge Jonathan E. Hawley who ordered that Wheeler remain detained in the custody of the U.S. Marshals Service.
The affidavit filed in support of the complaint alleges that in May 2015, Wheeler obtained nude photos from a minor female in Missouri by receiving them on his phone and by accessing the minor’s Facebook account. According to the affidavit, Wheeler appeared June 1, 2015, in the Circuit Court of Tazewell County seeking an order of protection against the minor’s family. Wheeler stated to the court that the minor’s family had threatened him because of his communications with the minor during the preceding two weeks. During the court proceeding, Wheeler produced his phone, which was ultimately seized and examined by law enforcement. The affidavit alleges that on three separate occasions, in late May and early June 2015, Wheeler used the cellphone’s text function to send naked images of the minor to approximately 120 people in the area code where the minor lives.
The indictment alleges that on three occasions, one on May 29, and on two separate occasions on June 1, 2015, Wheeler distributed child pornography. Further, the indictment alleges that on June 1, 2015, Wheeler impersonated a U.S. Marshal in an attempt to get information from an individual about the minor’s whereabouts.
If convicted, for each count of distribution of child pornography (three counts), Wheeler faces a statutory penalty of at least 15 years and up to 40 years in prison, and up to three years in prison for impersonating a federal officer.
The charges are the result of an investigation conducted by the U.S. Secret Service; task force members of the Central Illinois Cyber Crime Unit, including the Peoria County Sheriff’s Office and the Bloomington Police Department; the Pekin Police Department; Illinois State Police; and, the U.S. Marshal’s Service .
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Hualapai Tribe Receives Nearly $600,000 in Federal Grant Money to Reduce Alcohol/Substance Abuse CrimesRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $574,808 in federal grant funds have been awarded to the Hualapai Tribe to assist efforts to prevent and reduce alcohol- and substance abuse-related crimes within tribal jurisdiction. The grant funds were awarded by the Bureau of Justice Assistance (“BJA”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
Additional information about BJA and its programs is available at: https://www.bja.gov/Default.aspx
Information about OJP and its programs can be found at:http://www.ojp.usdoj.gov.
RELEASE NUMBER: 2015-090_HUALAPAI_TRIBE_GRANT (2015-AC-BX-0003)
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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.
High Level International Drug Trafficker Pleads Guilty to Violation of the Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SERGIO GRIMALDO aged 34, a citizen of Mexico, pled guilty today to conspiracy to possess and distribute 5 kilograms or more of cocaine. GRIMALDO’s organization distributed hundreds of kilograms of cocaine throughout United States, to include Jackson, Mississippi, Pensacola, Florida, New York City, New York, and Houma, Louisiana.
According to court documents, in September 2009, Drug Enforcement Administration Agents seized cocaine hydrochloride in Houma, Louisiana and in April of 2010, the Drug Enforcement Administration conducted a controlled purchase of cocaine hydrochloride from the defendant in Beaumont, Texas.
GRIMALDO was extradited from Mexico in July 2014, based on a warrant from the Eastern District of Louisiana. EFRAIN GRIMALDO, co-defendant and the brother of SERGIO GRIMALDO, was convicted of the same offense following a jury trial and was sentenced to 405 months imprisonment.
GRIMALDO faces a maximum sentence of life imprisonment and a fine of up to $10 million. U.S. District Judge Sarah S. Vance set sentencing for January 20, 2016.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration New Orleans Office, DEA Houston HIDTA Task Force, Terrebonne Parish Sheriff’s Office, Louisiana State Police Troop C, Houma Police Department and Lafourche Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorneys John F. Murphy and Theodore R. Carter III are in charge of the prosecution.
Grand Jury Indicts Urbana Man on Child Pornography ChargesRead the Press Release
Peoria, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced today that a federal grand jury in Peoria returned an indictment late yesterday that charges Terrence J. O’Connor, 52, of the 800 block of East Kerr Ave., Urbana, Ill., with receipt and possession of child pornography.
The indictment alleges that from April to August 2015, O’Connor received and possessed images and videos of minors who had not attained the age of 12 years engaged in sexually explicit conduct. The indictment also seeks forfeiture of computers and related materials allegedly used to commit or promote the offenses.
If convicted, the statutory penalty for each count of receipt of child pornography (two counts) is a mandatory minimum of five years in prison to 20 years in prison and a term of supervised release of up to life following any term of imprisonment. If a defendant has a prior child sex abuse or child pornography conviction, the statutory penalty is not less than 15 years and up to 40 years in prison. For possession of child pornography, the penalty is up to 20 years in prison.
O’Connor was arrested on Aug. 31, 2015, and charged in a criminal complaint with distribution of child pornography. During a court appearance on Sept. 1, 2015, before U.S. Magistrate Judge Eric I. Long, in Urbana, O’Connor was ordered detained in the custody of the U.S. Marshals Service. Arraignment has been scheduled on Sept. 28, 2015.
The charges are the result of an investigation by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Urbana Police Department and the Illinois Secretary of State.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Goldsboro Woman Indicted for Theft, Obstruction, and FalsificationRead the Press Release
RALEIGH - U.S. Attorney Thomas G. Walker announced that a federal grand jury in Raleigh, North Carolina, indicted DEBORAH CARR BATTLE, of Goldsboro, North Carolina, in a three count indictment charging theft of government monies, obstruction of agency proceedings, and falsification of documents in connection with a federal investigation.
BATTLE is a tailor who owns and operates a store called Lydia’s Alterations near the Seymour Johnson Air Force Base in Goldsboro, North Carolina. The United States Air Force 4th Mission Support Group utilized BATTLE as a vendor to undertake sewing and tailoring work on the uniforms of airmen who were to be deployed overseas in connection with Operation Enduring Freedom (OEF).
The indictment alleges that, over the course of two years, BATTLE made dozens of unauthorized charges using two different government purchase cards, in increments of $2,999.99 or less.
See the attached indictment. 150923_battle_indictment.pdf (438.62 KB)
If convicted of all charges BATTLE faces a maximum fine of $250,000.00 on each count, and a sentence of 10 years of imprisonment on count one, theft of government monies, 5 years imprisonment on count two, obstruction of agency proceedings, and 20 years on count three, falsification of documents in connection with a federal investigation.
The charges contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Investigation of this case was conducted by the Air Force Office of Special Investigations (AFOSI). Assistant United States Attorney Evan Rikhye is prosecuting the case for the government.
Gila River Indian Community Receives over $300,000 in Federal Grant Funds to Support Juvenile Offenders and At-Risk YouthRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $314,975 in federal grant funds have been awarded to the Gila River Indian Community’s juvenile drug court – an alternative program for juvenile offenders and at-risk youth. The grant funds were awarded by the Office of Juvenile Justice and Delinquency Prevention (“OJJDP”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
Information about OJP and its programs can be found at: http://www.ojp.usdoj.gov.
Information on OJJDP can be found at: http://www.ojjdp.gov/about/about.html
RELEASE NUMBER: 2015-091_GILA_RIVER_GRANT (2015-DC-BX-0114)
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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.
Georgia Businessman Sentenced for Participating in Kickback Scheme and for Filing False Tax ReturnsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KENNETH JOHNSON, SR., age 52, of Stone Mountain, Georgia, was sentenced today after previously pleading nolo contendere (no contest) to conspiring to pay kickbacks in a federal debris removal contract and two counts of filing false tax returns with the Internal Revenue Service.
U.S. District Judge Stanwood R. Duval sentenced JOHNSON to 3 years probation that included one year of home incarceration. In addition to the term of imprisonment, JOHNSON was also ordered to pay $113,771 in restitution to the Internal Revenue Service.
"We are pleased with the sentence handed down against Mr. Johnson today,” said Jerome R. McDuffie, Special Agent in Charge, IRS Criminal Investigation. “Quite often crimes of greed include more than concealing income from the IRS. This investigation is a prime example of how Special Agents of IRS Criminal Investigation work with the FBI, the Department of Defense, and the United States Attorney's Office to bring individuals involved in fraud to justice. Mr. Johnson sought to exploit the tragedy of Hurricane Katrina for personal gain. We will continue to work tirelessly with our law enforcement partners to stop those individuals who scheme and conspire with each other to benefit themselves to the detriment of other citizens and their government. "
According to court documents, the U.S. Army Corps of Engineers hired Phillips and Jordan, a national construction firm, to manage the removal of storm debris from the City of New Orleans after Hurricane Katrina devastated the metro area. After they were awarded the contract, Phillips and Jordan hired Company A, a local solid waste management company to assist with the debris removal project. Shortly after securing the contract, Company A hired ANTHONY PENN, a local businessman, to manage the debris removal project for them. After some time on the job, PENN approached the owners of Company A and asked if they would consider hiring his brother-in-law, KENNETH JOHNSON, as a sub-tier subcontractor to work on the project. The owners of Company A accepted the recommendation and hired JOHNSON’s company, KCJ Enterprises, as a sub-tier subcontractor. Sometime thereafter, PENN asked JOHNSON to provide him with a cut of the revenue that KCJ Enterprises was receiving from Company A as a reward for steering the contract to him. JOHNSON agreed to the scheme and wired a total of $236,461.55 in kickback payments to PENN from July 12, 2006 to February 8, 2008.
As part of the investigation, it was determined that JOHNSON filed false tax returns with the IRS for tax years 2007 and 2008 in an effort to conceal the kickback scheme and to avoid paying taxes on his income from the debris removal work. As a result, JOHNSON avoided paying $113,771.00 in federal taxes.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigations, the United States Department of Defense, and the Internal Revenue Service in investigating this matter. The case was prosecuted by Assistant U.S. Attorneys Spiro G. Latsis and Theodore R. Carter, III.
Fort Dodge Man to Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced September 22, 2015, to ten years in federal prison.
John Quillen, Jr., 41, from Fort Dodge, Iowa, received the prison term after an April 27, 2015, guilty plea to conspiracy to distribute methamphetamine following a conviction for a prior felony drug offense. Quillen was previously convicted of conspiracy against the rights of others/arson (cross-burning) and conspiracy to distribute methamphetamine in 1999.
At the guilty plea, Quillen admitted his involvement in a conspiracy from January 2014 through November 2014 that distributed more than 50 grams of methamphetamine. Quillen also admitted to selling over 10 grams of actual (pure) methamphetamine to an individual cooperating with law enforcement.
Quillen was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Quillen was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system. Quillen is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, Fort Dodge Police Department and Webster County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-3059.
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Fort Dodge Man Sentenced to Federal Probation for Straw Purchase of FirearmsRead the Press Release
A man who transferred firearms to a felon was sentenced September 22, 2015, to federal probation.
Jacob Blaze Jamison, 25, from Fort Dodge, Iowa, received the prison term after a June 26, 2015, guilty plea to sale or transfer of firearms to a felon and false statement during the purchase of firearms.
At the guilty plea, Jamison admitted he purchased two Hi-Point 9mm handguns for William “Billy” Rees. Rees was a felon and unable to purchase the firearms directly.
Jamison was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Jamison was sentenced to one year of federal probation. A special assessment of $200 was imposed.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, Fort Dodge Police Department, Webster County Sheriff’s Office, Pocahontas Police Department, Pocahontas Sheriff’s Office, and Calhoun County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-3004.
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Former HARC Employee Charged with Making False Statements to the Social Security AdministrationRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the filing of an information and plea agreement charging Sandra K. Shepherd (53, Tampa) with making a false statement to the Social Security Administration. If convicted, she faces a maximum penalty of 5 years in federal prison and a fine of $250,000. In her plea agreement, Shepherd has also agreed to make full restitution to the Social Security Administration program (SSA), or its designee.
According to court documents, the Hillsborough Achievement and Resource Centers (HARC), formerly the Hillsborough Association for Retarded Citizens, was established in 1953 to positively impact the future for all people living with developmental disabilities, such as Alzheimer’s disease and Down syndrome. HARC opened and operated group homes that served its target client population. HARC also spearheaded various community programs for its clients focused on inclusion activities for youths, adults, and seniors with disabilities.
Many of the HARC clients received SSA benefits due to various developmental disabilities. For certain HARC clients who lacked the capacity to manage their own SSA benefits, SSA approved one or more HARC officials to act as a “Representative Payee” to receive a particular client’s benefits and to use them exclusively for that client’s benefit. As a Representative Payee, the HARC official was required to complete and submit to the SSA a “Representative Payee Report” that included certain information about each HARC client’s living situation and the financial benefits received and expended on behalf of that client.
Shepherd began volunteering at HARC in 2010, and she was later hired to work as a HARC client finance manager. As a client finance manager, one of Shepherd’s duties was to annually assist the HARC CFO in completing and submitting to the SSA a Representative Payee Report for each developmentally disabled HARC client for whom HARC had acted as a Representative Payee.
In March 2011, Shepherd learned that certain HARC clients’ SSA funds—purportedly allocated solely for the HARC clients’ personal needs and use—had been wrongfully diverted by HARC executives from the clients for other purposes. Shepherd raised the wrongful diversion of the clients’ funds with the CFO, who acknowledged the conduct and quipped that the HARC CEO was “going to look good in orange.” Shepherd also discussed the diversion of the funds with the prior HARC CFO, who likewise acknowledged the wrongfulness of the diversion.
Notwithstanding her knowledge of the wrongful diversion of HARC client funds, Shepherd continued to complete false and fraudulent Representative Payee Reports relating to developmentally disabled HARC clients that stated, in pertinent part, that SSA benefits had been spent solely for particular HARC clients (for such items and services as clothing, education, medical and dental expenses, recreation, or other personal items), when that was not the case. Shepherd then provided the fraudulent payee reports to the HARC CFO for signature and mailed the reports to the SSA.
In June 2013, the U.S. Attorney’s Office filed a Verified Complaint for Forfeiture In Rem in a related case (Case No. 8:13-Cv-1601-T-17TBM), seeking the forfeiture of $87,000 held in a Synovus Bank account. That complaint raised like allegations—that HARC clients’ SSA benefits had been wrongfully diverted from the clients and used by HARC for other purposes—and was supported by facts contained in the sworn affidavit of a special agent with the U.S. Department of Health and Human Services - Office of Inspector General. On September 30, 2013, the district court entered a Default Judgment of Forfeiture in which the court ordered the forfeiture of the $87,000 to the United States.
"I want to thank United States Attorney Lee Bentley and all the government agencies involved in investigating this important case,” said Florida Attorney General Pam Bondi. “After multiple discussions between our offices, we determined the U.S. Attorney’s Office was best situated to handle this case and we are pleased with today’s announcement."
“Social Security payments are a lifeline for many Americans. The Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public trust of vulnerable beneficiaries,” stated Special Agent-in-Charge Margaret Moore-Jackson, SSA-Office of the Inspector General. “I’m grateful that the U.S. Attorney’s Office shares our determination to ensure the integrity of SSA’s programs.”
"Stealing government checks meant to cover the personal expenses of developmentally delayed clients in your care just to enrich yourself is a serious betrayal of trust," said Special Agent in charge Shimon R. Richmond. "Our agency is dedicated to ensuring the integrity of taxpayer-funded programs and the well-being of the often vulnerable beneficiaries of those programs."
An information is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Social Security Administration - Office of the Inspector General, the U.S. Department of Health and Human Services - Office of the Inspector General, and the Florida Department of Law Enforcement, along with the State of Florida’s Department of Financial Services - Office of Fiscal Integrity. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant.
Former Fayette county teacher sentenced to 15 years in Federal prison for receiving child pornographyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Joshua Mark Taylor, 32, of Weirton, West Virginia was sentenced today in federal court in Charleston to 15 years in federal prison to be followed by 20 years of supervised release. Taylor will also be required to register as a sex offender. Taylor pled guilty in June of 2013, admitting that he received child pornography via his cell phone.
According to court documents and proceedings, Taylor was employed by the Fayette County Board of Education as a school teacher at Collins Middle School from approximately March of 2013 to January of 2014. Taylor admitted that in November of 2013, he exchanged a large volume of text messages with a 12-year-old female who was a student at Collins Middle School. Taylor also admitted that from about November to January of 2014, he persuaded the student to take photographs of her genital area and send them to him on his cell phone. Taylor admitted to distributing or attempting to distribute the sexually explicit images through interstate commerce. Finally, Taylor admitted to receiving a sexually explicit image of the student through interstate commerce.
The investigation was initiated by the West Virginia State Police in January of 2014, after the father of the student reported her missing. Taylor picked the minor up at her family home and returned her to her home uninjured after missing for nearly 22 hours. The investigation led to Taylor’s arrest the next day in St. Mary’s, West Virginia. Prior to being arrested, Taylor sent the minor a text message urging her not to cooperate with the investigation or prosecution.
Taylor also pled guilty in Fayette County Circuit Court to the felony offense of sexual abuse by a parent, guardian, custodian or person in position of trust to a child and faces a sentence of not less 10 years and up to 20 years when he is sentenced on Monday, September 28.
United States Attorney Goodwin credited the West Virginia State Police and the other law enforcement agencies that worked so hard on the investigation. “The collaborative efforts of the West Virginia State Police, West Virginia Internet Crimes Against Children Task Force, Fayette County Sheriff’s Department, and the Federal Bureau of Investigation should be commended. Their cooperation brought yet another child predator to justice, and made all of our children safer,” said Goodwin.
Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case was brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Former Carlisle CEO Pleads Guilty in $30 Million Fraud Involving Ten Low-Income Housing DevelopmentsRead the Press Release
Former Carlisle Chief Executive Officer (CEO) pled guilty to participating in a $30 million fraud scheme involving ten low-income housing developments.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Nadine Gurley, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Former Carlisle CEO Matthew Greer, 37, of Miami Beach, pled guilty yesterday before United States District Court Judge Ursula Ungaro to two counts of conspiracy to commit theft of government money, in connection with a scheme to steal government funds intended for the construction of low-income housing.
According to court documents, including the factual proffer in support of the defendant’s plea, Matthew Greer and Lloyd Boggio served, at alternating times, as CEO of Carlisle Development Group (CDG), a low-income housing developer in Miami, Florida. CDG applied for federal tax credits and federal grant monies to build low-income housing developments through a program administered by the Florida Housing Finance Corporation (FHFC). To obtain these federal funds, FHFC required developers to submit proposed development costs, including a construction contract signed by the developer and contractor.
The court records further indicate that Greer and others through CDG, conspired to unjustly enrich themselves by submitting fraudulently inflated low-income housing construction contracts to FHFC’s representatives to obtain excess federal tax credits and grant monies to which they were not entitled, and then to use the proceeds for their personal use and benefit. From 2006 to 2012, Greer, and the other conspirators caused the submission of fraudulently inflated construction contracts on at least eight different low-income housing developments, which resulted in the allocation of at least $26 million in excess federal tax credits and grant monies. Similarly, during the course of the scheme, the conspirators made kickback payments for the benefit of Greer and others totaling at least $26 million.
Greer conspired with representatives of Biscayne Housing Group (BHG) to commit theft of government money and property. BHG employed the same contract inflation scheme of submitting fraudulently inflated contracts to FHFC for the receipt of excess federal tax credits and grant monies. CDG and BHG had a joint venture for two developments. In or around May 2010, Greer and his conspirators agreed to share approximately $3.7 million in excess government funds for these two joint venture developments.
Greer is scheduled to be sentenced on November 13, 2015. The United States has seized $9.3 million from Greer, who has agreed to entry of a forfeiture money judgment in the amount of $16,004,137, the balance of which he is expected to pay prior to sentencing. Greer faces a maximum possible sentence of ten years in prison.
Mr. Ferrer thanked the FBI, HUD-OIG, and IRS-CI for their work on this case. The case is being prosecuted by Assistant United States Attorneys Michael R. Sherwin, Michael N. Berger, Evelyn Sheehan and Eloisa Fernandez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former CFO of Vermeer (Tennessee) Sentenced to 44 Months in Prison for Equipment Lease SchemeRead the Press Release
Bart A. Witsman, 40, of Murfreesboro, Tennessee, former Chief Financial Officer of Vermeer (Tennessee), Inc., was sentenced on September 21, 2015, by United States District Court Judge Todd J. Campbell, to 44 months in prison, to be followed by a three year term of supervised release, for operating a fraudulent equipment leasing scheme that defrauded financial lending corporations of more than $1.6 million. Witsman was also ordered to pay restitution of more than $1.6 million.
Witsman pleaded guilty on September 8, 2014, to seven counts of wire fraud and five counts of money laundering.
Vermeer (Tennessee) specialized in the leasing, renting, servicing and selling of heavy construction-type machinery, and operated several stores in Tennessee, with the main store located in Murfreesboro. Between November 2007 and March 31, 2009, Witsman devised a scheme to defraud and to obtain money from Citicapital and Central Leasing by causing Vermeer (Tennessee) to purchase equipment from various manufacturers, and sell the equipment for a profit. Witsman then obtained loans from Citicapital or Central Leasing on behalf of Vermeer (Tennessee) in the amount of the original purchase price of the equipment that had already been sold. Witsman then used the equipment as collateral for the loans and deceived Citicapital and Central Leasing into believing that the equipment was still in the custody and control of Vermeer of Tennessee.
The case was investigated by the Federal Bureau of Investigation and the IRS-Criminal Investigation. The United States was represented by Assistant U.S. Attorney Sandra G. Moses.
Fishers investment broker sentenced in fraud caseRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today the sentencing of a Fishers man who stole millions of dollars from unsuspecting investors, many who lost their life’s savings. John K. Marcum, 51, was sentenced by U. S. District Judge Jane Magnus-Stinson to 66 months in federal prison and remanded to the Bureau of Prisons to begin his sentence immediately.
“The United States Attorney’s Office is cracking down on white collar fraud,” said Minkler. “In order to protect the financial markets of this country, those who lie, cheat, and steal from unsuspecting investors must go to federal prison. Mr. Marcum stole the life’s savings and retirement accounts of his clients to fund a lavish lifestyle. Judge Magnus–Stinson realized this and sent Mr. Marcum directly to federal prison for five and one half years.”
In 2010, Marcum founded the investment firm Guaranty Reserves Trust, LLC (GRT) operating in the Indianapolis area. He promised investors that he would use their money to achieve significant returns by trading securities, stocks and bonds with no fees being charged. Marcum arranged for investors to deposit money into various accounts and self-directed IRA’s which allowed him to control the investors’ money.
From 2010 through 2013 Marcum solicited millions of dollars from 17 investors. Marcum represented himself and GRT to be worth millions of dollars with celebrity clients and traded very conservatively. He promised to earn high rates of return with no risk to the investors’ principle. In reality he failed to invest the money as promised and converted it for personal gain. Marcum comingled the funds to finance a personal line of credit, highly speculative start-up ventures, luxury cars, rent on a Geist-area home, a vacation at a Playboy Club in Los Angeles, California, and other gifts.
At sentencing, one 70 year-old widow told Judge Magnus-Stinson she gave Marcum $600,000 from a lawsuit related to the accidental death of her husband with nothing to show for it. Judge Magnus-Stinson described Marcum’s use of the victim’s money for “vanity business ventures” as typical of the narcissism the court sees in fraud schemes. Six victims testified they will be working for the rest of their lives because Marcum stole their life’s savings.
This was a joint investigation with the Federal Bureau of Investigations and Internal Revenue Service Criminal Investigation.
W. Jay Abbott, FBI Special Agent in Charge stated, “Investment fraud schemes can take many forms, but ultimately lead to the loss of innocent victims’ hard earned money. There is a persistent need to diligently investigate these types of crimes, and the FBI will continue to work closely with our partner agencies to ensure criminal activity is identified, investigated, and disrupted.”
“IRS Criminal Investigation is committed to protecting the American taxpayers by following the money and holding individuals who violate the public trust accountable for their actions,” said IRS Criminal Investigation, Special Agent in Charge Stephen Boyd. Mr. Marcum’s sentencing sends a loud message that defrauding individuals of their hard earned savings will not be tolerated. IRS Criminal Investigation will continue to follow the money and protect the American public.”
According to Winfield D. Ong, Criminal Chief for the United States Attorney’s Office, who prosecuted the case, Marcum must make restitution of $3.9 million to the victims and serve three years of supervised release after his sentence.
Tips for Consumers:
- Be cautious of unsolicited offers to invest.
- Don’t believe everything you’re told. Take time to do your own research on the investment’s potential—and on the person making the offer.
- Be wary of investment opportunities that offer unusually high yields.
- Check with federal and state securities regulators to find out if there are any complaints against the company or person you are considering doing business with.
- Request written financial information—such as a prospectus, annual reports, or financial statements—then compare the written information to what you were told.
- Check with a trusted financial adviser, broker, or attorney about any investments you are considering.
- And if you think you’ve been scammed, report it to the Securities and Exchange Commission, your state’s securities regulator, or a law enforcement agency.
For more information go to www.FBI.gov
Financial Management Consultant Indicted for Allegedly Embezzling $1MRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence today returned an eleven-count indictment charging John M. Hairabet, Jr., 43, a former business associate and office manager of New England Anesthesiologists, Inc., and president of Anesthesia Management Consultants, LLC, with allegedly embezzling more than $1 million dollars in bank account funds belonging to the medical firm and from employee 401(k) pension fund contributions.
The grand jury returned an indictment charging Hairabet with seven counts of wire fraud, two counts of money laundering, and one count each of pension theft and aggravated identity theft.
The indictment is announced by U.S. Attorney Peter F. Neronha, William P. Offord, Special Agent in Charge of IRS Criminal Investigation; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Susan A. Hensley, Regional Director, U.S. Department of Labor Employee Benefits Security Administration.
It is alleged in the indictment that between November 13, 2007, and January 31, 2013, Hairabet, in his capacity as an independent contractor bookkeeper and office manager of New England Anesthesiologists, and through his management consulting firm, Anesthesia Management Consultants, stole the identity of the owner of New England Anesthesiologists and used that stolen identity while signing bank documents and to convert more than $500,000 of New England Anesthesiologists funds for his own personal use.
It is also alleged in the indictment that between January 1, 2012, and December 31, 2012, that Hairabet collected from employees of New England Anesthesiologists and converted for his own personal use several hundreds of thousands of dollars of 401(K) retirement fund employee contributions.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wire fraud is punishable by up to 30 years imprisonment and a fine of up to $1,000,000; money laundering is punishable by up to 10 years imprisonment and a fine of up to $250,000 or twice the amount of criminally deprived property; pension theft is punishable by up to 5 years imprisonment and a fine of up to $250,000; and aggravated identity theft is punishable by a mandatory sentence of 2 years imprisonment to be served consecutive to any other sentence imposed by the court.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by IRS Criminal Investigation, the U.S. Secret Service and the U.S. Department of Labor, Employee Benefits Security Administration.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Federal Court Permanently Bars Wisconsin Tax Return Preparer from Preparing Tax Returns for OthersRead the Press Release
FEDERAL COURT PERMANENTLY BARS WISCONSIN TAX RETURN PREPARER FROM PREPARING TAX RETURNS FOR OTHERS
Allegedly Concocted Phony Businesses and Made Other False Claims on Customers’ Returns
WASHINGTON – A federal court has permanently barred an Appleton, Wisconsin, tax return preparer from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order prohibits Gerardo Garcia, aka Gerry Garcia, and his firm Garcia Enterprises LLC, from acting as a tax return preparer and from continuing to operate a tax return preparation business. The order was entered by the U.S. District Court for the Eastern District of Wisconsin. Garcia agreed to the entry of the injunction, but did not admit to the allegations in the civil complaint against him.
According to the complaint, Garcia prepared false and improper returns during the 2015 filing season, even though the Internal Revenue Service (IRS) had previously assessed $26,000 in penalties against him. The complaint alleged that Garcia prepared tax returns on which he concocted phony businesses for his customers in order to understate his customers’ tax liabilities or inflate their refunds. In addition, as alleged in the complaint, Garcia fabricated business expenses, understated his customers’ business income and claimed other false or improper deductions, credits and filing statuses. In one case, the complaint alleged that Garcia prepared two tax returns for a customer that reported more than $10,000 in losses over two years from a non-existent “aquaculture” business that Garcia asserted his customer owned. The complaint cited several additional examples, including Garcia improperly claiming child tax credits for children, who live outside of the United States; dependency exemptions without proof the customer supported the children; and incorrect filing statuses, such as head-of-household, that resulted in more favorable tax rates.
The injunction order requires Garcia to provide the United States with a list of his customers since 2010 and to send a copy of the court’s injunction order to all customers for whom he prepared returns. The injunction order also requires Garcia to provide a link to the court’s injunction order on any website he maintains and to post a copy in any physical business location in which he receives customers and potential customers for any bookkeeping, payroll or other financial services.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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East Texas Federal Grand Jury Indicts 12 in Medicare Fraud SchemeRead the Press Release
TYLER, Texas — Law enforcement officers in East Texas have arrested multiple individuals charged in a Medicare fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
On Sep. 16, 2015, a federal grand jury returned an 18-count indictment charging 12 individuals associated with Three Angels Home Health Inc., in a scheme to defraud Medicare by recruiting East Texas Medicare recipients who were not eligible, or did not necessitate the need, for home health care services. Law enforcement officers began arresting the defendants today.
According to the indictment, an investigation revealed that between August 2013 and November 2014, the defendants were involved in a scheme to defraud Medicare of approximately $2.5 million for home health services allegedly provided to about 250 East Texas Medicare patients. These patients were from Tyler, Jacksonville, Marshall, Nacogdoches, Lufkin, and other areas. The indictment alleges the defendants worked as recruiters for Grace Munthali and her company, Three Angels. The defendants were paid approximately $500 for each Medicare beneficiary they signed up to receive home health care services from Three Angels. To encourage the patient’s participation, the defendants offered and paid them from $100 to $200 each. Those charged in the indictment include:
Lizzy Sirls, 33, of Cuney, Texas;
Katrina Watts, 38, of Lufkin, Texas;
Pandra Wade, 55, of Lufkin, Texas;
Victoria Sterns, 40, of Lufkin, Texas;
Tammy Washington, 51, of Nacogdoches, Texas;
Nichelle Fofana, 51, of Nacogdoches, Texas;
Yulanda Nash, 44, of Nacogdoches, Texas;
Ronald Russell, 51, of San Augustine, Texas;
Sheneki McCollister, 39, of Center, Texas;
Meoshe Goodwin, 42, of Tenaha, Texas;
Latosha Gray, 26, of Jacksonville, Texas; and
Marcus Chukwu, Jr., 52, of Sugarland, Texas.
If convicted, the defendants face up to five years in federal prison for the conspiracy to commit health care fraud charge and up to five years for each of the payment of illegal remuneration charges.
Earlier this year, Munthali pleaded guilty to health care fraud charges and was sentenced to 5 years in federal prison on Sep. 22, 2015.
This case is being investigated by the U.S. Health and Human Services Office of Inspector General and the Texas Attorney General’s Medicare Fraud Control Unit with assistance from the Federal Bureau of Investigation. This case is being investigated by Special Assistant U.S. Attorney Kenneth McGurk and Assistant U.S. Attorney Nathaniel C. Kummerfeld.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Disabilities Rights Conference to Be Held October 21 in Sioux FallsRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that the Disabilities Rights Conference will be held on Wednesday, October 21, 2015. The conference will be held at the Sioux Falls Convention Center, located at 1101 N. West Avenue in Sioux Falls, South Dakota. The conference is co-sponsored by Avera Health and LifeScape.
In conjunction with the 25th anniversary of the Americans with Disabilities Act, and October’s designation as National Disability Employment Awareness Month, the conference is designed to raise awareness about the rights of persons with disabilities, and to educate the public about its role in protecting those rights.The conference agenda is geared towards physicians, nurses, health care administrators, social workers, counselors, behavioral health professionals, long term care administrators, attorneys, law enforcement, business owners, state officials, federal officials, local officials, tribal officials, educators, and school administrators. The one-day conference will begin at 8:00 am and conclude at 5:30 pm. Registration opens at 7:30 am.
Among the featured speakers will be Heather Abbott, a Boston Marathon Bombing Survivor, whose presentation will focus on Thriving Instead of Surviving. Also featured will be Jeffrey Cain, MD, FAAFP. Dr. Cain has been practicing and teaching family medicine in Denver, Colorado for over 30 years, where he now serves as an Associate Professor of Family Medicine at the University of Colorado. A past President and Board Chair of the American Academy of Family Physicians, Dr. Cain was honored in 2013 by Modern Healthcare as one of the 100 Most Influential People in Healthcare in the country. The conference will also highlight Mario Arnauz Bonds, a motivational speaker and singer/songwriter. Born with Morning Glory Syndrome, a degenerative condition that gradually took his sight, Bonds will share with the audience a message about his childhood, which depicts triumphs over abuse and abandonment, and his adjustment and acceptance of going totally blind.
The luncheon speaker will be South Dakota State Senator Billie Sutton, who will talk about learning to live with a disability. As the result of a rodeo injury in 2007, Sutton suffered a paralyzing spinal cord injury.
Panel discussions will address substantive areas of disability rights, learning to live with an acquired disability, and respect for people with disabilities. Additionally, Dan Lusk, Division Director for Developmental Disabilities for the South Dakota Department of Human Services, will close the conference with a presentation on Home and Community Based Services: Supporting Community Integration.
The conference is free and open to the public.
For the full conference agenda and to register, please follow this link: www.avera.org/disabilitiesconference
DEA 10th National Drug Take Back Day, Saturday, September 26Read the Press Release
Contact Person: Chuvalo Truesdell (404) 893-7124
Event will take place from 10 am-2 pm on Saturday, September 26
COLUMBIA, SC. - The Drug Enforcement Administration’s (DEA) South Carolina District Office is partnering with national, state, local, and tribal law enforcement officials, as well as community coalition groups, to hold its 10thstate-wide Prescription Drug Take-Back Day on Saturday, September 26, 2015 from 10 a.m. to 2 p.m. local time. This one-day event will make it convenient for the public to rid their homes of potentially dangerous prescription drugs. At the event, South Carolinians will be able to drop off their expired, unused, and unwanted pills at sites across the state free of charge, no questions asked. By doing so, they will help prevent prescription drug abuse and theft. South Carolinians participating in DEA’s last take-back, held on September 27, 2014, yielded 4,776 pounds of unwanted or expired medications for safe and proper disposal at sites set up throughout the state. Collection can be found by going to www.dea.gov or calling 800-882-9539. The National Prescription Drug Take-Back Day addresses vital public safety and health issues. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that many abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, many Americans do not know how to properly dispose of their unused medications, often flushing them down the toilet or throwing them away – posing safety and environmental hazards. Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said, “DEA is committed to making our communities safer by raising public awareness about the dangers of prescription drug abuse. The Prescription Drug Take-Back program will allow Americans to properly and safely dispose of their prescription medication which could otherwise be abused for non-medical purposes. This event is free and anonymous. Simply turn in your unused, unwanted, unneeded medication, no questions asked. This is just one of example of how DEA is working hand-in-hand with its law enforcement and community partners in an effort to stem the tide of prescription drug abuse.” The DEA encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.justhinktwice.com, www.GetSmartAboutDrugs.comand www.dea.gov. #####Court Orders Florida Tax Return Preparation Company and Owner to Stop Assisting in Knowing Understatements of Tax Liability; Requires Monitoring at Company's ExpenseRead the Press Release
A federal district judge in Miami has ordered a tax return preparation business based in Miami and its owner to stop assisting in the preparation of federal income tax returns that knowingly understate federal income tax liability, the Justice Department announced today.
The injunction also requires Miami-based Ebenezer Tax Services Inc. and its owner, Ernice Joseph, to exercise due diligence in preparing returns that claim the Earned Income Tax Credit and bars them from preparing any return that claims the Fuel Excise Tax Credit. In addition, the judge ordered Ebenezer and Joseph to gather documentation to substantiate the deductions and credits claimed on the returns they prepare and to retain the documentation for a period of five years. The defendants are also required to send a copy of the injunction to customers and others. Finally, the injunction requires that a neutral monitor be engaged at Ebenezer’s and Joseph’s expense to review and monitor their compliance with the injunction and provide a report of its findings to the United States.
If the court later finds that Ebenezer or Joseph have violated any of the terms of the injunction, they will be permanently barred from preparing federal tax returns for others. The court previously barred Primo Tax Services Inc., another company partly owned by Joseph, from preparing returns for others.
According to the complaint, Joseph and Ebenezer Tax Services have prepared federal income tax returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes. The complaint alleged that Ebenezer Tax Services prepared returns that unlawfully claimed the Earned Income Tax Credit by reporting fictitious Schedule C businesses or business income. The complaint also alleged that Ebenezer and Joseph prepared returns that claimed credits to which the taxpayers were not entitled in order to overstate their clients’ refunds. According to the complaint, the Internal Revenue Service (IRS) estimates that the activities of Ebenezer Tax Services and Joseph may have led to millions of dollars in revenue losses.
In consenting to the injunction, Ebenezer and Joseph admitted that they had engaged in conduct subject to penalty under Section 6701 of the Internal Revenue Code. Section 6701 penalizes the knowing preparation of documents whose use would result in an understatement of tax liability.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax return preparer, and has launched a free directory of federal tax return preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Columbia Prisoner Sentenced for Threatening PresidentRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that ERIC ANTHONY ROME, age 26, formerly of Mauldin, South Carolina, currently incarcerated at the Kirkland Correctional Institution in Columbia, was sentenced in federal court in Columbia, South Carolina, for Making Threats Against the President of the United States, a violation of 18 U.S.C. § 871. United States District Judge Joseph F. Anderson, Jr., of Columbia sentenced Rome to 41 months of incarceration.
Evidence presented at the change of plea hearing established that on May 16, 2014, Eric Anthony Rome left a message with the Inspector General of the South Carolina Department of Corrections stating that he planned to kill President Obama upon his release from prison on August 22, 2015. When interviewed by Agents, Rome admitted to calling the Inspector General’s office and leaving the voicemail. He claimed he had been a member of the Aryan nation since he was seventeen-years-old and that he would obtain money from them. He also claimed he was offered money previously by the Aryan Nation to assassinate President Obama. Further, Rome claimed his plan is to use the money from the Aryan nation to purchase a rifle and for traveling to Washington, D.C., and “lay and wait” for an accurate shot. The case was investigated by the United States Secret Service. Assistant United States Attorney Winston Holliday of the Columbia office prosecuted the case. #####Colorado River Indian Tribes Receive Nearly $500,000 in Federal Grant Funds to Support Juvenile Offenders and At-Risk YouthRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $487,578 in federal grant funds have been awarded to the Colorado River Indian Tribes to reduce juvenile offender recidivism on the Colorado River Indian Reservation. The grant funds were awarded by the Office of Juvenile Justice and Delinquency Prevention (“OJJDP”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
Information about OJP and its programs can be found at: http://www.ojp.usdoj.gov.
Information on OJJDP can be found at: http://www.ojjdp.gov/about/about.html
RELEASE NUMBER: 2015-092_COLORADO_RIVER_INDIAN_GRANT (2015-TY-FX-0004)
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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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Colombian National Sentenced to 63 Months for Conspiring to Launder Drug Trafficking ProceedsRead the Press Release
A Colombian national was sentenced today to 63 months in prison for conspiring to launder drug trafficking proceeds, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA).
Tito Miller Parra-Isaza, 45, pleaded guilty on May 26, 2015. U.S. District Judge Ed Kinkeade of the Northern District of Texas imposed the sentence.
According to a factual stipulation filed in connection with his guilty plea, Parra-Isaza coordinated the deposit of bulk cash, which he knew to be the proceeds of drug trafficking, into financial institutions in Mexico and elsewhere. The bulk cash was later wire transferred into bank accounts in Dallas and then transported to Panama and elsewhere for distribution to individuals involved in drug trafficking.
Four other defendants previously pleaded guilty. Of the remaining charged defendants, three are fugitives and one is deceased.
This case is being investigated by the DEA. This case is being prosecuted by Senior Trial Attorney Mark Irish and Trial Attorney Nicole Grosnoff of the Criminal Division’s Asset Forfeiture and Money Laundering Section. The Criminal Division’s Office of International Affairs also has provided substantial assistance.
Chief Financial Officer and Co-Founder of Defunct Charter Flight Company Admits Role in Multi-Million Dollar FraudRead the Press Release
NEWARK, N.J. - The former CFO and co-founder of a now-defunct South Carolina public charter operator today admitted using phony documents and inflated revenue figures to defraud a New Jersey bank and other financial institutions out of millions of dollars, U.S. Attorney Paul J. Fishman announced.
Robert Keilman, 70, of Marlboro, New Jersey, pleaded guilty to an information charging him with one count of conspiracy to commit wire fraud affecting a financial institution and to commit bank fraud.
According to documents filed in this case and statements made in court:
Keilman was one of the founding members of Southern Sky Air & Tours d/b/a Myrtle Beach Direct Air & Tours, commonly referred to as Direct Air. From January 2010 through September 2011, Keilman was Direct Air’s chief financial officer. Direct Air offered airline services in a number of cities, including Newark, New Jersey.
Keilman acknowledged that U.S. Department of Transportation regulations required charter operators like Direct Air to protect passengers financially by posting a security or by keeping passenger payments for future flights in a designated depository or escrow account with an approved bank. Pursuant to this regulation, Direct Air set up an escrow account with a bank headquartered in Wayne, New Jersey. According to Keilman, Direct Air and the bank agreed that money in the escrow account for future flights would not be released to Direct Air until after the flights were completed. Additionally, Direct Air would have to submit a request for payment along with summary reports detailing the flights purportedly flown.
Keilman admitted that, from 2010 through September 2011, he conspired with others, including a pair of Direct Air executives identified in court documents as “Executive 1” and “Executive 2,” to engage in a “double-dipping” scheme wherein they submitted release requests for passenger payments designated as “membership fees” prior to the completion of the flights, and then after the flights were completed, submitted release requests for the same funds.
Keilman admitted that he, Executive 1, Executive 2 and others also submitted release requests containing inflated passenger revenue figures, causing the bank to release millions of dollars in revenues for fictitious passengers. In addition, Keilman stated that he, Executive 1, Executive 2 and others concealed the shortfall in Direct Air’s bank account by sending fraudulent financial statements to creditors.
The conspiracy to commit wire and bank fraud charge to which Keilman pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 6, 2015.
Fishman credited Special Agents of the U.S. Department of Transportation, Office of the Inspector General, under the direction of Special Agent in Charge Todd Damiani, for the investigation leading to today’s plea.
The case is being prosecuted by Assistant U.S. Attorney Andrew Kogan and Deputy Chief Scott B. McBride of the U.S. Attorney’s Office’s Economic Crimes Unit, and by Trial Attorneys L. Rush Atkinson and Carol L. Sipperly of the U.S. Department of Justice’s Criminal Division, Fraud Section.
Defense counsel: Gina L. Simms Esq., Washington, D.C.; Michael Baldassare Esq., Newark, N.J.
Chicago Man Charged with Stealing a Handgun from a Cedar Rapids Gun ShopRead the Press Release
Dante Glinn, age 22, from Chicago, Illinois, has been charged with one count of theft of a firearm from a licensed firearms dealer and one count of possession of a stolen firearm. The charges are contained in a Complaint filed on August 28, 2015. Glinn was arrested in Chicago on August 31, 2015, and made his initial appearance yesterday in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about August 25, 2015, Glinn entered the Sports Outfitters, a licensed firearms dealer located in Cedar Rapids, during business hours. As Glinn walked by a display case, he reached over the case, opened the door, removed a Kimber .45 caliber pistol, and then fled from the store with the pistol.
If convicted on all charges, Glinn faces a possible maximum sentence of twenty years’ imprisonment, a $500,000 fine, $200 in special assessments, and six years of supervised release following any imprisonment.
Glinn appeared yesterday in federal court in Cedar Rapids and was held pending a detention hearing on Thursday, September 24, 2015, at 8:00 a.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Cedar Rapids Police Department and the FBI Safe Streets Task Force. Court file informationavailable: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-mj-00276.
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Chicago Man Charged in Connection with the Murder of Sheila Von Wiese in Bali, IndonesiaRead the Press Release
A Chicago man has been charged for conspiring with his cousin and cousin’s girlfriend to kill a U.S. citizen at a resort in Bali, Indonesia, in August 2014, according to a criminal complaint unsealed in federal court in Chicago today.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zachary T. Fardon for the Northern District of Illinois and Acting Special Agent in Charge John A. Brown of the FBI’s Chicago Division made the announcement.
According to the complaint, Robert Ryan Justin Bibbs, 24, of Chicago, advised his cousin, Tommy Schaefer, and Schaefer’s girlfriend, Heather Mack, on how to kill Mack’s mother, Sheila Von Wiese in August 2014. The complaint alleges that, on or about Aug. 2, 2014, Von Wiese and Mack departed Chicago for a vacation in Bali, Indonesia. On or about Aug. 12, 2014, Schaefer allegedly departed Chicago and arrived in Indonesia at the same resort where Mack and the victim were staying. The complaint alleges that, within hours of Schaefer’s arrival, the victim was bludgeoned to death, and Schaefer and Mack stuffed the body in a suitcase and placed it in a taxi cab, which was later discovered by Indonesian police.
According to the complaint, Bibbs knew of the plot to kill Von Wiese before Schaefer and Mack carried it out, advised them on how to kill the victim, and counseled Schaefer on how to evade detection by law enforcement. According to the complaint, Bibbs did so because he believed that Schaefer would gain access to Von Wiese’s estate through the victim’s daughter, Mack, and that Schaefer would share the inheritance with family members, including Bibbs.
On Aug. 13, 2014, Schaefer and Mack were arrested in Bali. In April 2015, an Indonesian court convicted Schaefer and Mack of charges related to Von Wiese’s murder. Schaefer was sentenced to 18 years in an Indonesian prison, while Mack was sentenced to 10 years.
Bibbs was arrested today by federal authorities. He is scheduled to make an initial court appearance before U.S. Magistrate Judge Maria Valdez today at 3 p.m. CDT.
The charges and allegations contained in a criminal complaint are merely accusations. The defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the FBI’s Chicago Division and being prosecuted by Assistant U.S. Attorneys Bolling Haxall and Julie Porter of the Northern District of Illinois and Trial Attorneys Hope Olds and Christine Duey of the Criminal Division’s Human Rights and Special Prosecutions Section.
Chicago Man Charged with Aiding His Cousin and Heather Mack in the Murder of Sheila Von Wiese in Bali, IndonesiaRead the Press Release
CHICAGO — The cousin of a man convicted with Heather Mack of murdering Mack’s mother at an Indonesian resort was charged with conspiring with the couple to commit the killing, according to a criminal complaint unsealed in federal court in Chicago today.
ROBERT RYAN JUSTIN BIBBS, 24, of Chicago, advised his cousin, Tommy Schaefer, and Schaefer’s girlfriend, Heather Mack, about how to kill Mack’s mother, Sheila Von Wiese, according to the federal complaint and FBI affidavit. Bibbs was aware of the couple’s plot to kill Von Wiese at an Indonesian resort on Aug. 12, 2014, and he counseled Schaefer on how to get away with it, the affidavit states. Bibbs believed Schaefer would gain access to Von Wiese’s estate through Mack, and that Schaefer would share the inheritance with family members, according to the charges.
Federal authorities arrested Bibbs earlier today. The complaint charges him with conspiracy to commit the foreign murder of a U.S. national. He is scheduled to make an initial court appearance at 3:00 p.m. today before U.S. Magistrate Judge Maria Valdez.
“Our commitment to fighting violent crime extends beyond the border,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “We will use whatever tools are necessary to pursue justice both here and abroad.”
Mr. Fardon announced the arrest and complaint along with John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
“Our pursuit of individuals involved in violent crimes carried out overseas could not occur without the assistance of our worldwide network of Legal Attaches and their relationships with our international partners,” said Mr. Brown.
An Indonesian court convicted Schaefer and Mack of charges related to Von Wiese’s murder. Schaefer was sentenced to 18 years in an Indonesian prison, while Mack was sentenced to ten years.
U.S. authorities executed multiple search warrants to acquire information stored in the cellular telephones of Schaefer and Bibbs, and in the Facebook accounts of Bibbs, Schaefer and Mack. The affidavit cites several discussions via text message between Bibbs and Schaefer both before and during Schaefer’s and Mack’s trip to Bali. During a text conversation on July 25, 2014, Schaefer told Bibbs that Von Wiese’s murder would occur in a month, and that it would result in financial gain for both of them, according to the complaint.
Soon after Schaefer checked into the St. Regis Bali resort on the morning of Aug. 12, 2014, he sent a text message to Bibbs, who was in the U.S. The message stated that an attempt to kill Von Wiese by causing an overdose of medicine had failed, according to the complaint. Schaefer’s text messages to Bibbs stated: “Wasn’t enough bro smh” [shaking my head]…“Definitely need that ” [emoji of a handgun]. Bibbs replied, “Damn I told you”; to which Schaefer responded, “I know I already thought about that”…“U was right.”
Later in the morning, Schaefer exchanged text messages with Mack, who was sharing a room with her mother on a different floor of the same hotel. According to the complaint, Mack encouraged Schaefer to come to her room and carry out the murder. This exchange prompted Schaefer to send a series of text messages to Bibbs, stating, “She wants me to right now”… “while she snoozing”… “Go in.” Bibbs replied, “Go sit on her face wit a pillow then.”
Schaefer and Mack then exchanged several text messages in which they referred to each other as the film characters Bonnie and Clyde, according to the affidavit. The affidavit states that Schaefer asked Mack, “Can u wack her in the head with a big ass pole”; to which Mack responded, “Can you”; and Schaefer replied, “Yes.”
Schaefer then traveled to the third floor where Mack and her mother were staying, according to the complaint. He is seen on the hotel’s surveillance camera standing in an elevator with what appears to be an item stuffed under his shirt. At that point, the affidavit states that Schaefer sent a series of text messages to Mack, saying, “Let me just creep up and wak her”… “Once I do it”…”She was drunk slipped and fell”; to which Mack responded, “Okay g”…“Okay just knock her out”…“Itll be so much easier.”
A short time later, Von Wiese was bludgeoned to death. The affidavit states that later in the morning, Schaefer sent a series of text messages to Bibbs, saying, “Need yo help bro”…“I’m gucci but for some reason I don’t feel bad.” Bibbs responded, “She wasn’t a good person”…“There wasn’t any positive energy released from her body.” The pair then exchanged text messages for the next ten minutes, during which time they discussed the U.S. Men’s Basketball team, according to the complaint.
Schaefer and Mack were arrested the following day in another hotel in Bali.
The charge of conspiracy to commit the foreign murder of a U.S. national carries a maximum sentence of life in prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Bolling Haxall and Julie B. Porter; and Hope Olds and Christine Duey, trial attorneys from the U.S. Department of Justice’s Human Rights and Special Prosecutions Section.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Charleston man sentenced to five years in Federal prison for carrying a fireman during a drug crimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Charleston man was sentenced today in federal court in Charleston to five years in prison for carrying a firearm during a drug trafficking offense. James Philip Daugherty, 20, previously entered a guilty plea to carrying a loaded Ruger semi-automatic pistol on January 9, 2015, while he possessed crack cocaine that he intended to distribute in and around Charleston, West Virginia.
The investigation was conducted by the Kanawha County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Cedar Rapids Man Pleads Guilty to Heroin and Fentanyl Conspiracy Resulting in Four Injuries, Two Deaths in 2015Read the Press Release
A man who conspired to distribute heroin and fentanyl that led to several overdoses and deaths pled guilty today in federal court in Cedar Rapids.
DeShaun Anderson, age 43, from Cedar Rapids, Iowa, was convicted of conspiracy to distribute heroin and fentanyl resulting in serious bodily injury and death.
At the plea hearing, Anderson admitted he conspired with others to distribute heroin and another powerful opiate, fentanyl, in Cedar Rapids. Anderson admitted that, on four occasions, users suffered serious bodily injury as a result of using the substances either he or his co-conspirators distributed. He also admitted that two individuals died as a result of using substances distributed by the co-conspirators. All of the deaths and overdose injuries admitted by Anderson occurred between late February and mid-April of this year. Court documents reflect that, between January and April 2015, at least four other individuals lost consciousness, but did not suffer serious injuries, after using drugs distributed by Anderson or his co-conspirators.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Anderson remains in custody of the United States Marshal pending sentencing. Anderson faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $100 in special assessments, and at least 6 years, and up to a lifetime, of supervised release following any imprisonment.
The case is being investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00046-LRR.
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California Man Sentenced for Drug and Gun ChargesRead the Press Release
United States Attorney Deborah R. Gilg announced that on September 23, 2015, a Sacramento, California, man was sentenced to 97 months in prison for possession with intent to distribute methamphetamine and marijuana and possession of a firearm in furtherance of a drug offense. Anthony Shaquille Harris was sentenced to 37 months for the drug charge and a consecutive sentence of 60 months on the gun charge. He will serve three years on supervised release after he completes the prison terms. He was also ordered to pay $200 in special assessments.
Harris was arrested by officers of the Lincoln Police Department on February 16, 2015, after officers executed a search warrant at the Lincoln apartment where Harris was staying. During that search, officers found approximately 160 grams of methamphetamine and a small amount of marijuana. Officers also found a 9mm handgun with a loaded magazine, a shotgun, and various types of ammunition.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Cabot Man Sentenced to 25 Years for Sexual Exploitation of A Minor by A ParentRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David Shepard, Assistant Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigations (FBI), announced today that United States District Court Judge Susan Webber Wright sentenced Matthew Hiner, age 28, of Cabot, to 300 months, or 25 years, in federal prison for Sexual Exploitation of a Minor by a Parent.
On August 22, 2013, an undercover agent from the FBI Child Exploitation Task Force, operating out of a satellite office in Washington, D.C., was online in a public chat room and began chatting with someone using the username "daddylooking4fam," later identified as Hiner. Username "daddylooking4fam" posted "i’m a single 25 year old active bi dad of a 5 year old son from usa."
The agent then engaged in a private chat conversation with "daddylooking4fam." During this chat, "daddylooking4fam" told the officer that he had shared custody of a 5-year-old child. "Daddylooking4fam" said that he was "looking for a like-minded family to merge with and raise a very loving and active family with." "Daddylooking4fam" then asked the agent to chat on a private Yahoo! chat.
The agent then engaged in a private Yahoo! chat with a Yahoo! user utilizing the screen name "Matthew Hiner." The user of "Matthew Hiner" sent the agent five photographs which Hiner described as depicting himself and a 5-year-old child. The first photograph depicted a photograph of a child who Hiner described as a 5-year-old child to whom he had access. The second photograph depicted an adult male standing in front of a house. The adult male was identified as Hiner. The remaining three photographs depicted sexually explicit images of Hiner and the child.
Hiner was arrested on August 23, 2013. After being read his Miranda rights, Hiner admitted that he had been in incest chat sites and had engaged in sex acts with the five-year-old child and his friend’s 11- and 8-year-old sons. Hiner admitted to taking pictures of himself performing sex acts on the 5-year-old child, and admitted that he took the three pictures that were sent to the undercover officer. Hiner also took pictures of the 11-year-old and himself engaging in sex acts.
There is no parole in the federal system. When Hiner is released upon completion of his 25 year sentence, he will serve a lifetime of supervised release. Conditions of his supervised release require him to register as a sex offender and have no contact with minors under the age of 18. Hiner still faces three rape counts and one count of sexual assault in the 2nd degree in Pulaski County Circuit Court.
"Our office is committed to protecting the innocence of society’s most vulnerable victims, our children, especially when they are being abused by those they trust the most." Thyer stated. "Today’s sentence cannot undue the harm done by Hiner but it does send the message that actions like his will not be tolerated and will result in lengthy prison sentences."
"The Little Rock Field Office of the FBI is dedicated to investigating and stopping the kind of heinous acts of abuse which were committed by Hiner on innocent children," Shepard said. "We would like to thank our partners at the United States Attorney’s Office for their continued dedication to prosecuting predators like Hiner."
The FBI led the investigation. Assistant United States Attorney Kristin H. Bryant prosecuted the case for the United States.
Bridgeport Man Who Purchased Tableting Machine to Produce Oxycodone Pills is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON OLIVIERA, 35, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to three years of probation, the first six months of which OLIVIERA must serve in home confinement, for illegally importing a tablet machine to produce oxycodone pills. Judge Underhill also ordered OLIVIERA to perform 50 hours of community service.
According to court documents and statements made in court, on July 23, 2013, OLIVIERA and David Wolvovsky were arrested at Wolvovsky’s home in Fairfield after they received delivery of a package containing a tableting machine that had been ordered from China. On that date, Wolvovsky stated to investigators that he and OLIVIERA had purchased the machine through an individual he had met on the Internet, and that they had also purchased what he had believed to be a large quantity oxycodone powder from the same individual. Wolvovsky then stated that, before the machine had arrived, he had tested the powder and determined that it was not true oxycodone powder. A subsequent search of Wolvovsky’s residence revealed a package containing approximately one kilogram of the fake oxycodone powder. The search also revealed opiate test kits, packaging materials, tablet dying/imprinting machinery and $21,034 in cash.
On March 13, 2015, OLIVIERA waived his right to indictment and pleaded guilty to one count of unlawfully importing a tableting machine.
On July 24, 2014, Wolvovsky pleaded guilty to the same charge. On November 21, 2014, he was sentenced to four years of probation, including six months of home confinement. He also was ordered to pay a fine of $2,000, forfeit the $21,034 that was seized at the time of his arrest and perform 100 hours of community service.
This matter was investigated by the DEA New Haven Tactical Diversion Squad and Homeland Security Investigations. The DEA Tactical Diversion Squad includes members from the Greenwich, Shelton, Hamden, Vernon, West Hartford, Bristol and Willimantic Police Departments. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Bossier City man sentenced to 15 years in prison for receiving child pornography on computerRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City man was sentenced to 180 months in prison for receiving child pornography.
Kenneth Ray Jurls, 40, of Bossier City, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of receiving child pornography. He was also sentenced to five years of supervised release and must register as a sex offender. According to evidence presented at the May 20, 2015 guilty plea, law enforcement agents detected someone downloading child pornography using a peer-to-peer internet file sharing program. Law enforcement agents searched Jurls’ home on July 16, 2014 and seized his computer. A forensic examination of the computer revealed Jurls had been downloading child pornography for years. More than 1,000 images and videos of child pornography were found on his computer.
“Sooner or later a child predator’s illegal activity will come to light,” Finley stated. “This defendant contributed to the abuse of children by downloading and trading massive amounts of child pornography online. My office will hold those accountable who possess, trade and view this type of material.”
Homeland Security Investigations, Louisiana Attorney General’s Office and the Bossier City Marshal’s Office investigated the case. Assistant U.S. Attorney F. Michael O’Mara prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone app (http://www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
Bloomington Pain Management Doctor Indicted for Accepting Kickbacks as Part of Large Scale Health Care Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of ELENA LEV POLUKHIN, 58, for writing prescriptions for pain medication as part of a health care fraud conspiracy in which POLUKHIN received kickbacks from Best Aid Pharmacy. POLUKHIN is charged with conspiracy to commit health care fraud, soliciting and receiving kickbacks, health care fraud, aggravated identity theft and distribution of controlled substances. The defendant made an initial appearance today before Magistrate Judge Steven E. Rau in U.S. District Court in St. Paul, Minn.
“As charged, this defendant abused her position as a doctor, took kickbacks and participated in a significant fraud of Medicare and Medicaid,” said U.S. Attorney Luger. “In addition to funneling kickbacks through a charitable non-profit, Dr. Polukhin wrote unwarranted prescriptions for pain cream and prescribed opioids without any legitimate medical purpose. As Minnesota continues to struggle with our pain pill problem, it is cases like this that so clearly demonstrate the lengths to which some will go to abuse the health care system.”
“Minnesota is not immune to the prescription drug epidemic that continues to plague our nation at an alarming rate,” said Drug Enforcement Administration Assistant Special Agent in Charge Dan Moren. “Dr. Elena Polukhin contributed to this epidemic by keeping patients hooked on addictive pain killers and placing an emphasis on generating profits, by fraudulently billing Medicare and Medicaid, versus fulfilling her obligation to enhance the sound mind and body of her clients.”
"Those who commit health care fraud will be actively pursued by law enforcement. The FBI, along with its partners, will hold health care providers to account if they prey upon those seeking treatment and commit fraud against taxpayers," said Federal Bureau of Investigation Special Agent in Charge Richard Thornton.
“Physicians and pharmacists are entrusted to make decisions that are medically necessary and that are in the best interest of their patients, not for their own personal financial gain”, said Lamont Pugh III, Special Agent in Charge – Chicago Region, U.S. Department of Health and Human Services, Office of Inspector General. “The OIG will continue to work with our law enforcement partners to identify fraud schemes that jeopardize patient safety and well-being and hold those who execute these schemes accountable.”
According to the indictment and documents filed in court, ELENA POLUKHIN was a physician specializing in physical medicine and rehabilitation. She was a participating provider in Medicare and Medicaid. Most of her patients were Medicare and Medicaid beneficiaries. POLUKHIN was the sole owner and CEO of Rehabilitation Consultants in Bloomington, Minn. Rehabilitation Consultants specialized in pain management and rehabilitation.
According to the indictment and documents filed in court, from at least February 2011 through December 2014, POLUKHIN conspired with others to fraudulently bill Medicare and Medicaid for topical pain-relief creams that she prescribed. The defendant referred virtually every patient prescribed topical pain-relief cream to a single pharmacy, Best Aid, which prepared and dispensed the topical pain-relief creams.
According to the indictment and documents filed in court, BORIS LEO RABICHEV, the manager and part-owner of Best Aid who was charged separately by information, and RICHARD WAYNE CUSTER, a pharmacist at Best Aid who was also charged separately by information, compounded pain creams using bulk-powder forms of the various ingredients called for by the prescriptions and dispensed in the pain creams to customers. Best Aid then submitted claims for reimbursement to Medicare and Medicaid that falsely represented that the pain creams had been made using tablet, capsule or liquid forms of the various ingredients in the pain creams. By including these false representations, Best Aid generated inflated reimbursements on the pain creams. In exchange for POLUKHIN referring all of the prescriptions for these pain creams to Best Aid, RABICHEV paid POLUKHIN more than $40,000 in kickbacks.
According to the indictment and documents filed in court, RABICHEV, at POLUKHIN’s request, made monthly kickback payments to POLUKHIN in the form of checks payable to the Roife-Nissenbaum Trust (RN Trust). The RN Trust was a 501(c)(3) charitable trust founded by POLUKHIN, who also acted as its chair of the board and president. The RN Trust purportedly supported several programs and services, including scholarships to students; a directory of medical providers; fitness programs; humanitarian missions and international collaborations; a mental health and chemical dependency program; medical research; and a “starving artists project.” Between at least June 2012 and March 2014, Best Aid wrote at least 20 checks to the RN Trust for the purpose of paying more than $43,000 of kickbacks to POLUKHIN.
According to the indictment and documents filed in court, POLUKHIN also knowingly wrote prescriptions, on at least one occasion, for morphine and oxycodone in the absence of a legitimate medical purpose and outside the course of usual professional practice.
This case is the result of an investigation conducted by the Drug Enforcement Administration (DEA) Tactical Diversion Squad, which is comprised of agents, officers and deputies from the DEA, Federal Bureau of Investigation, Food and Drug Administration, Minneapolis Police Department, Plymouth Police Department, Ramsey County Sheriff’s Office, Washington County Sheriff’s Office, the Minnesota Army National Guard, and the U.S. Department of Health and Human Services – Office of Inspector General.
The DEA Tactical Diversion Squad has established a hotline if you have information or questions concerning Rehabilitation Consultants and/or Dr. Elena Polukhin – please call 612-344-4189. To provide information online related to Rehabilitation Consultants and/or Dr. Polukhin, please visit www.deadiversion.usdoj.gov and select the “Report Illicit Pharmaceutical Activities - RX Abuse Reporting Link.”
This case is being prosecuted by Assistant United States Attorney John E. Kokkinen.
Defendant Information:
ELENA LEV POLUKHIN, 58
Minnetonka, Minn.
Charges:
- Conspiracy to commit health care fraud, 1 count
- Soliciting and receiving kickbacks, 20 counts
- Health care fraud, 3 counts
- Aggravated identity theft, 3 counts
- Distribution of controlled substances, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Beaverton and Eugene Police Departments Receive Federal Grant Funds for Body Worn CamerasRead the Press Release
PORTLAND, Ore. – Yesterday, Attorney General Loretta Lynch announced that the Justice Department has awarded grants totaling more than $23.2 million to 73 local and tribal agencies in 32 states to expand the use of body-worn cameras and explore their impact. The grants, awarded by the Department’s Office of Justice Programs (OJP), are part of President Obama’s proposal to purchase 50,000 body-worn cameras for law enforcement agencies within three years.
“This vital pilot program is designed to assist local jurisdictions that are interested in exploring and expanding the use of body-worn cameras in order to enhance transparency, accountability and credibility,” said Attorney General Lynch “The impact of body-worn cameras touches on a range of outcomes that build upon efforts to mend the fabric of trust, respect and common purpose that all communities need to thrive.” http://www.justice.gov/opa/speech/attorney-general-loretta-e-lynch-delivers-remarks-white-house-champions-change-event.
The grants, which require a 50/50 in-kind or cash match, can be used to purchase equipment and require that applicants establish a strong implementation plan and a robust training policy before purchasing cameras. The long term costs associated with storing this information will be the financial responsibility of each local agency.
“I am pleased that two police departments in Oregon are recipients of these federal funds,” said Acting U.S. Attorney Billy J. Williams. "The use of body-worn cameras will assist our law enforcement partners and the communities they serve by providing greater transparency into the challenging work done every day."
BJA has launched a comprehensive online toolkit that consolidates research, promising practices, model policies and other tools that address issues surrounding body-worn cameras, including implementation requirements; image retention; concerns of policy makers, prosecutors, victim and privacy advocates; and community engagement and funding considerations. The toolkit is available at: https://www.bja.gov/bwc/.
OJP’s Bureau of Justice Statistics is collecting data on body-worn camera usage through surveys of law enforcement agencies. It is also designing data collection forms for future surveys of prosecutors and public defenders to measure how body-worn camera footage is being used by the courts in criminal cases.
For additional information about the BWC Pilot Implementation Program, visit http://www.bja.gov/bwc/pdfs/BWCPIP-Award-Fact-Sheet.pdf.
Arkansas Man Sentenced to Ten Years in Prison for Possession of Child PornographyRead the Press Release
Hattiesburg, Miss - Joshua Herron, 29 of Arkansas, was sentenced on Monday, September 21, 2015, by U.S. District Judge Keith Starrett to serve 10 years in federal prison followed by a lifetime of supervised release for possession of child pornography, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway.
Herron was found to be in possession of child pornography while on supervised release from a previous child pornography conviction. He was serving in the National Guard at Camp Shelby when he was first indicted and convicted for possession of child pornography in February, 2010. He was released from prison on August 2, 2013 and placed on supervised release which was later revoked when he was found to be in possession of images of child pornography again.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Glenda R. Haynes.
22 September 2015
Westbank Drug Dealers Plead Guilty and Admit Role in Two MurdersRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAY WOODRUFF, age 21, and FRANKIE HOOKFIN, age 24, both of Waggaman, pled guilty today to conspiring to distribute a kilogram or more of heroin and 280 grams or more of crack cocaine and to murdering a man to further their group’s drug trafficking activities.
WOODRUFF and HOOKFIN each pled guilty to two counts of the Superseding Indictment, which charged twelve defendants with drug trafficking, a variety of weapons offenses, and six shootings resulting the death of four people and the injury of two others. Count 1 charged WOODRUFF and HOOKFIN with conspiring to distribute a kilogram or more of heroin and 280 grams or more of crack cocaine, which carries a mandatory minimum sentence of at least ten years up to life in prison. WOODRUFF and HOOKFIN also pled guilty to Count 12, charging them and two others with causing the death of a man through the use of firearms, which is punishable by any term of years up to life in prison. U.S. District Judge Lance M. Africk set sentencing on December 10, 2015.
“Violent offenders have no place on our streets,” stated U.S. Attorney Polite. “If you terrorize our communities through drug trafficking and gun violence, just as these defendants did, then you risk being in jail for the rest of your life.”
According to court documents, WOODRUFF and HOOKFIN were part of a drug trafficking organization that moved significant quantities of heroin and cocaine base on the West Bank. Beginning in 2012, the group engage in a series of violent acts, beginning with a drive by shooting into a another vehicle where the driver and his front seat passenger were shot with an AK-47 while two young children, who were not hit, were in the back seat. The group is alleged to have participated in five additional shootings, two of which ended in death. WOODRUFF and HOOKFIN pled guilty to the murder of Emeal Washington and admitted to their participation in the murder of Doreatha Richardson, in addition to two other shootings. In addition to the shootings, members of the group are charged with weapon and drug conspiracies, in addition to several substantive distribution counts.
HARRY SMOOT, ISAAC SMITH, RICHARD THOMAS, TERRELL WADE, LANCE SINGLETON, and CHRISTOPHER BROWN have previously pled guilty and are awaiting sentencing. TERRENCE KELLEY and CLIFFORD SONNIER are scheduled for trial on September 28, 2015. JOEQUELL LEWIS and ANDRE ADDISON are scheduled for trial on October 26, 2015.
The Superseding Indictment is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the Harvey Hustler gang and its various offshoots on the West Bank. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Jefferson Parish District Attorney’s Office, Special Agents of the Federal Bureau of Investigation, and officers of the Jefferson Parish Sheriff’s Office.
Assistant United States Attorneys Greg Kennedy, David Haller, and Myles Ranier and Special Assistant United States Attorney Collin Sims, who is a former Assistant United States Attorney and the Criminal Chief at the St. Tammany Parish District Attorney’s Office, are in charge of the prosecution.
Webster Man Charged with Forging Irs Release of LevyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Brian Becker, 40, of Webster, NY, was arrested and charged by criminal complaint with falsely impersonating an IRS official and interfering with the administration of the tax laws. The charges carry a maximum penalty of three years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, Becker was the subject of a collections action by the Internal Revenue Service that resulted in the garnishment of his wages and his wife’s wages. Thereafter, the defendant forged an IRS Release of Levy, which he provided to his employer and his wife’s employer. As a result of the fraudulent releases, the employers stopped garnishing the wages of both Becker and his wife.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jonathan W. Feldman. Becker was released on conditions.
The criminal complaint is the result of an investigation by Special Agents of the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Robert E. O’Malley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Wayne Man Sentenced to Two Years Probation for VA FraudRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Lawrence A. Stewart, 48, of Wayne, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to two years of probation and fined $8,000 for theft of public money. He was also ordered to pay $53,852.72 in restitution to the Veterans Administration ("VA"), which he paid prior to sentencing. The defendant pled guilty on April 8, 2015.
According to court records, from about October 2011 until January 2015, Stewart received additional VA disability compensation based on unemployability when he was, in fact, gainfully employed. Stewart repeatedly provided falsified documentation to the VA, underreporting the extent of his employment and the income he received.
"By taking money you were not entitled to, you took it from the sole agency whose purpose it to serve veterans," Judge Woodcock told the defendant before imposing the sentence.
The investigation was conducted by the VA Office of the Inspector General.
Two Men Sentenced for Possession of MethRead the Press Release
CORPUS CHRISTI, Texas – Two men from Lafayette, Indiana, have been sentenced following their convictions of conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Daniel Marvin, 48, and William Parker, 35, pleaded guilty Feb. 18, 2015, and March 16, 2015, respectively.
Today, Senior U.S. District Judge John Rainey sentenced Marvin to 135 months in federal prison, while Williams was ordered to serve a 120-month-term of imprisonment. Both were also ordered to serve five years of supervised release following their sentences.
In December 2014, Border Patrol (BP) agents at the Sarita checkpoint were conducting primary inspections when they became suspicions of two vehicles that approached the checkpoint at approximately the same time. During an x-ray inspection of the first vehicle, which was driven by Marvin, agents discovered a small safe that contained a bundle of methamphetamine wrapped in black tape, a small scale, $1,300 U.S. currency and a loaded 9mm handgun. In a further inspection of the second vehicle, which was driven by Parker, agents located a modified container to conceal contraband that included a baggie and syringe filled with methamphetamine and a small scale. Initially, the two men stated that they were travelling alone; however, they later admitted to travelling to South Texas together to pick up the vehicle that contained the safe and drugs. Laboratory analysis determined that the methamphetamine weighed approximately 500 grams and had a purity level of 96%.
In federal custody since their arrests, Marvin and Parker will remain in custody and serve their sentences at a U.S. Bureau of Prisons facility to be designated in the near future.
The convictions stem from an investigation by the Drug Enforcement Administration and BP. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Two Guilty of Conspiracy to Distribute Heroin in Southeastern VirginiaRead the Press Release
NORFOLK, Va. – Phillip Jerome Murphy, 41, of Franklin, pleaded guilty today to charges of conspiracy to distribute heroin and possessing a firearm during a drug trafficking crime. A fellow Bloods gang member, Collie Sanks, 37, of Emporia, pleaded guilty to conspiring to distribute heroin on Sept. 17, 2015.
According to court documents, Murphy and Sanks were leaders of a Bloods street gang known as the Red Stone Rydahs, which operated in the Franklin area. Murphy and Sanks began distributing significant quantities of heroin in Franklin, Smithfield and Emporia in approximately 2012. As frequently as twice per month, Murphy and Sanks would travel to New York to purchase bulk quantities of heroin and then travel back to southeastern Virginia to distribute the drug. Both men sold heroin themselves, and also employed other individuals to assist them in their distribution activities. On several occasions, Murphy completed heroin sales within extremely close proximity to an elementary school that was in session. In addition to numerous undercover heroin purchases from both Murphy and Sanks, search warrants executed at residences associated with each man yielded heroin, cocaine, narcotics packaging materials, and firearms.
Murphy and Sanks were charged by criminal complaint on July 10, 2015, and Murphy was subsequently indicted by a federal grand jury on Aug. 19, 2015. Murphy faces a mandatory minimum penalty of 20 years in prison and a maximum penalty of life in prison when he is sentenced on Jan. 6, 2015. Sanks faces a maximum penalty of 40 years in prison when sentenced on Dec. 9, 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; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and Phillip Hardison, Chief of the Franklin Police Department, made the announcement after Murphy’s plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty 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 Nos. 2:15cr103 (Murphy) and 2:15cr115 (Sanks).
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