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21 September 2015
Detroit man sentenced to four years for role in Federal heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who assisted in the distribution of heroin in Huntington in 2013 and 2014 was sentenced today to four years in federal prison, announced U.S. Attorney Booth Goodwin. Ramone L. Wells, 20, previously pleaded guilty in June of 2015 to conspiracy to distribute heroin.
From February of 2013 to December 8, 2014, Wells assisted multiple co-conspirators in the sale of heroin transported from Detroit to Huntington. During the conspiracy, Wells supervised street level heroin dealers in Huntington and collected cash from drug sales. Wells also sold heroin he received from his co-conspirators.
Members of the conspiracy used multiple Huntington residences as locations where heroin was stored, prepared and distributed, including the residence located at 403 Homestead Place in Huntington. On December 6, 2014, a postal inspector with the United States Postal Service intercepted a package addressed for the residence containing approximately 230 grams of heroin. Agents delivered the package on December 8 and executed a search warrant at the residence after the package was accepted. During the search, agents seized heroin, drug paraphernalia, cash, and guns.
Multiple others have been convicted for their respective roles in the conspiracy including Paul A. Roberts, who pleaded guilty to maintaining a residence for the distribution of heroin in March 2015, Pricilla Lee Dylan, who pleaded guilty to maintaining a residence for the distribution of heroin in August 2015, Dustin S. Barton, who pleaded guilty to distributing heroin in August 2015, Kenneth E. Baxter, who pleaded guilty to distributing heroin in August 2015, Coty S. Richardson, who pleaded guilty to attempting to possess with intent to distribute 100 grams or more of heroin in August 2015, and Sean L. Gist, who pleaded guilty to conspiracy to distribute heroin earlier this month.
The Huntington FBI Drug Task Force, United States Postal Service, West Virginia State Police and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Detroit man sentenced for Federal drug chargeRead the Press Release
CHARLESTON, W.Va. – A Detroit man was sentenced today to six months in prison, followed by six months of home confinement for a federal drug charge, announced U.S. Attorney Booth Goodwin. Anthony Curtis Beckley II, 34, previously pleaded guilty in federal court in Charleston to possessing oxycodone with the intent to distribute it. Beckley admitted that on October 7, 2013, he possessed over 200 oxycodone pills that he intended to sell.
The investigation was conducted by the Metro Drug Enforcement Network Team. Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Department of Justice awards grants to IMPDRead the Press Release
Indianapolis – U. S. Attorney General Loretta Lynch and United States Attorney Josh J. Minkler announced today funding awards from the Community Oriented Policing Services (COPS Office) to the Indianapolis Metropolitan Police Department. A series of grants totaling over $2.5 million was announced; the largest of which is a $1.875 million grant awarded through the COPS Hiring Plan (CHP). CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer hires for three years and will allow IMPD to hire 15 additional officers to patrol neighborhood streets.
“These grants reaffirm my promise to support IMPD and all our law enforcement partners to reduce violent crime in Indianapolis,” said Minkler. “However, this cannot be accomplished with funding and more officers alone. It is the responsibility of every citizen in this community to work toward a safer Indianapolis. When one of us becomes a crime victim, we should all feel the pain.”
“We are grateful to receive the COPS grant as it will help us augment hiring next year and help us as we plan for subsequent years to sustain those numbers,” said Department of Public Safety Director Dr. David Wantz.
“We are grateful to be awarded four federal grants to continue our partnerships within the community. I would like to personally thank the COPS Office for this prestigious award. In our continual effort to be efficient, these grants are instrumental in allowing IMPD to put more officers on the streets,” said Chief Rick Hite. “Additional officers will enable us to continue to combat crimes and build stronger community partnerships within our neighborhoods, all of which are mentioned as pillars in the President’s 21st Century Policing report.”
The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”
Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers. All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
Other grants awarded to Indianapolis include:
$294,000 for Project Safe Neighborhoods, an anti-gun and gang initiative
$250,000 for a criminal justice and mental health collaboration
$150,000 to fight crime in hot spot areas of Indianapolis
For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Department of Justice Awards Grants to Middle District Law Enforcement AgenciesRead the Press Release
TAMPA, FL - The U.S. Department of Justice, Office of Community Oriented Policing Services (COPS), today announced funding awards to five cities and counties in the Middle District of Florida. These grants, totaling $2,096,297, are intended to create, and in some cases protect, 17 law enforcement positions. Over $107 million will be awarded nationally, through the COPS Hiring Program (CHP).
The list of this year’s grantees includes the Hendry County Sheriff’s Office; the Hillsborough County Sheriff’s Office; the Orange County Sheriff’s Office; the Rockledge Police Department; and the South Daytona Police Department.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”
CHP provides grants to state, local, and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
“Community policing is critical in fostering and sustaining strong relationships between local law enforcement and the communities they serve,” said U.S. Attorney A. Lee Bentley, III. “The partnerships developed through these efforts create the dialogue necessary to build trust at all levels. Our Office is excited that five of our local law enforcement partners will have additional funding to enhance community policing within their jurisdictions.”
Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers. All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
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DOJ Awards Law Enforcement Hiring Grants to Help Build Trust, Reduce Violence, Protect SchoolsRead the Press Release
WASHINGTON, DC—Today, U.S. Attorney General Loretta Lynch announced Office of Community Oriented Policing Services (COPS Office) funding awards to12 cities and counties in Ohio, aimed at creating, and in some cases protecting, 58 law enforcement positions. Over $107 million will be awarded nationally, through the COPS Hiring Program (CHP), including $7.3 million in Ohio.
In the Southern District of Ohio, nearly $1.9 million is being awarded to the City of Cincinnati for 15 law enforcement positions.
The list of this year’s grantees includes: Austintown Township, Barberton, Boardman, Canton, Cincinnati, Cleveland, Cuyahoga Metropolitan Housing Authority Police, East Cleveland, Mansfield, Massillon, Milton Township and the Village of Northfield.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”
CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers. All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Crime Stoppers’ Tip Leads to Arrest of Bank Robber on Federal ChargeRead the Press Release
DALLAS — A Dallas man has been charged in a federal criminal complaint with committing the September 3, 2015, robbery of a First Convenience Bank in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Following a detention hearing on Friday, September 18, 2015, U.S. Magistrate Judge David L. Horan ordered that Joshua Sefnathn Chavez, 23, remain in federal custody on the charge.
According to the complaint, the First Convenience Bank, located inside the Kroger store at 752 Wynnewood Shopping Center in Dallas, was robbed by a male suspect, later identified as Chavez. Chavez approached a teller’s counter and handed the teller a dark-colored bank bag, a folded piece of paper and a withdrawal slip. The teller opened the piece of paper that read, “This is a robbery no one gets hurt! Put all lose bills in bag! No trackers no dye packs. Gun in waist!”
In fear for her life, the teller removed cash from her cash drawer, placed it in the bag and handed the bag to Chavez, who then left the bank.
After further investigation, detectives with the Dallas Police Department (DPD) determined that the suspect in the First Convenience Bank robbery matched the description of an individual who robbed a Chase Bank in Dallas two days earlier. The DPD issued a press release to the local media and to social media asking for the public’s help in identifying the individual who robbed these banks. Crime Stoppers received a tip that identified the suspect as Chavez.
A federal complaint is a written statement of the essential facts of the offenses charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. If convicted of this bank robbery, however, Chavez faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment.
The FBI and the DPD are investigating. Assistant U.S. Attorney Keith Robinson is in charge of the prosecution.
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Convicted Sex Offender Sentenced to 15 Years in Federal Prison for Possession of Child PornographyRead the Press Release
SAVANNAH, GA - Oris Blair III, 38, a previously convicted sex offender from Savannah, Georgia, was sentenced today by Chief United States District Judge Lisa Godbey Wood to 15 years in federal prison, this time for possessing thousands of images of child pornography. Blair pled guilty to the federal offense in early 2014.
According to evidence presented during his guilty plea and sentencing hearings, members of the Queensland Police Department (QPD), in Brisbane, Australia, arrested an Australian citizen for distributing child pornography. Investigators determined that the Australian citizen distributed child pornography to hundreds of additional individuals worldwide, including Blair, a previously convicted sex offender residing in Savannah, Georgia. After identifying Blair as a potential recipient of the child pornography, investigators reviewed email exchanges between Blair and others. In one of the email exchanges, Blair wrote, “I like boys from 0 on up.” The investigation determined that Blair had received, possessed and distributed child pornography. In total, Blair was found to be in possession of at least 2,031 images and 318 videos of child pornography. Many of the images depicted prepubescent males, toddlers, and infants being brutalized and raped by adults.
In 2002, Blair was convicted in Chatham County Superior Court on two counts of Enticing a Child for Indecent Purposes. Both of those counts involved Blair sodomizing minors on two separate dates. For those charges, Blair received a sentence of 7 months in prison, followed by just over 9 years of probation.
United States Attorney Edward Tarver said, “We cannot allow Blair another opportunity to inflict irreparable harm on children. Blair deserves every day in prison he was sentenced to serve. And, after he’s released from federal prison, Blair will be on federal supervised release for the remainder of his life. The successful outcome of this prosecution is the direct result of the hard work and cooperation by the FBI and our friends with Australia’s Queensland Police Department.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “Today’s sentencing reflects the serious nature of the defendant’s unbridled exploitation of children through child pornography. Every time one of these images is traded or otherwise distributed, the child on those images is again victimized. The FBI is proud of the role that it played in removing this individual from our streets as we continue to work hard to protect our nation’s children from individuals like Mr. Blair.”
This case was investigated by the Australia’s Queensland Police Department and the FBI. Assistant United States Attorneys Greg Gilluly and Jenna Solari prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Conspirator Admits to Robbing Casino PatronsRead the Press Release
Baltimore, Maryland – Jose Hector Laguerre, age 47, of Baltimore, pleaded guilty today to conspiring to commit robbery in connection with several robberies of patrons of the Maryland Live Casino.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; and Anne Arundel County Police Chief Tim Altomare.
According to his plea agreement, on three occasions from November 1 to November 10, 2013, Laguerre and co-conspirator Willie Fleming used a firearm to rob eight patrons of the Maryland Live Casino located in Hanover, Maryland. Fleming instigated the robberies in order to pay his gambling and marijuana trafficking debts. Fleming obtained and maintained possession of the handgun used in the robberies, and committed an additional robbery with another co-conspirator of three casino patrons on October 27, 2013.
Video surveillance from the casino showed Laguerre and Fleming following patrons inside the casino, and then by car as they drove out of the casino garage. The co-conspirators robbed the victims at gunpoint after the victims got out of their cars to enter their homes, or in one instance, as they rested in their car while parked in a shopping center lot on their way home. The robbers stole a total of at least $26,000 in cash, a check and personal property such as jewelry, credit cards, cell phones, wallets, purses and clothing.
On November 14, 2013, Fleming was arrested for drug and gun offenses in Baltimore while he was in the vehicle used to commit the robberies. A search warrant was executed on the car and law enforcement seized ski masks, a vest worn by Laguerre in a casino video, jewelry stolen from the victims and a receipt for valet parking at the casino dated the same day as one of the robberies.
Laguerre faces a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett scheduled sentencing for January 5, 2016 at 3:00 p.m.
Willie Hernandez Fleming, age 37, of Baltimore, previously pleaded guilty to his role in the robberies and was sentenced to 137 months in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police, and the Montgomery County, Prince George’s County and Anne Arundel County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, Jr., who is prosecuting the case.
Coles County Man Indicted on Drug and Gun ChargesRead the Press Release
Urbana, Ill. – A Charleston, Ill., man, Arnett Deshaun Brown, 42, made his initial appearance in federal court today in Urbana. Brown, aka Shaun, of the 1500 block of Woodlawn, was indicted on charges of possession of heroin, crack cocaine, and marijuana with intent to distribute and possession of firearms by a felon in early September; however the indictment remained sealed pending Brown’s court appearance. Brown appeared before U.S. Magistrate Judge Eric I. Long who ordered that Brown remain detained in the custody of the U.S. Marshals Service. Trial has been scheduled on Nov. 24, 2015.
The charges are the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Central Illinois Task Force. Supervisory Assistant U.S. Attorney Eugene L. Miller is prosecuting the case in the Central District of Illinois, Urbana Division.
The nine-count indictment alleges that Brown possessed heroin, crack cocaine and marijuana with intent to distribute on June 11, 2014, and heroin and marijuana with intent to distribute in February 2015. Brown is also charged with possession of firearms after being convicted of a felony. Between Feb. 3 and Feb. 6, 2015, the indictment alleges that Brown possessed 11 firearms, including handguns and two rifles. Brown also faces one count of possession of a firearm in furtherance of a drug trafficking crime.
If convicted, the maximum statutory penalty for possession of a controlled substance with intent to distribute (five counts) is up to 30 years in prison if the defendant has a prior felony drug conviction. For possession of a firearm in furtherance of a drug trafficking crime (one count), the penalty is a mandatory minimum five years in prison served consecutive to any sentence for the underlying crime. For possession of a firearm by a felon (three counts) the penalty is up to 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Cherryvale Man Sentenced to 7 Years on Federal Child Porn ChargesRead the Press Release
WICHITA KAN. - A Cherryvale, Kan., man was sentenced Monday to seven years in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Daniel Hosier, 35, Cherryvale, Kan., was convicted on one count of possession of child pornography and one count of distribution of child pornography.
During trial, prosecutors presented evidence that on March 28, 2013, Hosier emailed images of child pornography on Yahoo. They also presented evidence that on July 13, 2013, he possessed child pornography on laptop computers and on a smartphone.
Grissom commended the Montgomery County Sheriff’s Office, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Charlotte Insurance & Financial Executive Indicted for Filing False Tax Returns and Obstructing Grand Jury InvestigationRead the Press Release
CHARLOTTE, N.C. – Patrick Emanuel Sutherland, 47, of Charlotte, was indicted by a federal grand jury sitting in Charlotte for filing false tax returns and obstructing a federal grand jury investigation, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. The indictment was returned on September 17, 2015, and was unsealed today in federal court.
Acting U.S. Attorney Rose is joined in making today’s announcement by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to allegations contained in the indictment, from 2007 to the present, Sutherland was an actuary, and the owner and operator of numerous companies in the insurance and financial industries. The indictment alleges that between 2007 and 2010, Sutherland and his affiliated companies received deposits from domestic and foreign sources exceeding $2.5 million, yet Sutherland fraudulently underreported his business receipts and his personal income to the IRS by more than $1.5 million. For example, despite receiving substantial income for years 2007 to 2010, Sutherland reported a combined income of approximately $276,697, and paid a mere $12,483 in total federal income taxes. During the same three-year period, Sutherland’s lifestyle and expenditures for personal living expenses far exceeded his total income reported on his individual tax returns, the indictment alleges.
According to allegations in the federal indictment, to conceal the fraud, Sutherland falsely claimed that international wires to his domestic bank accounts were loans from his sister and her company. In reality, the indictment alleges, most of these funds were insurance commissions due to Sutherland or were funds obtained from a brokerage account in Bermuda which Sutherland controlled.
The indictment alleges that because Sutherland worked with offshore insurance companies, some of his commissions had to be paid to an offshore intermediary. The indictment alleges that Sutherland used his Bermuda-based shell company, Steward Technology Services Limited (STS) to funnel personal and business funds to Sutherland’s U.S. bank accounts. According to allegations contained in the indictment, on numerous occasions, Sutherland mischaracterized the wire transfers from STS’s bank account in Bermuda to Sutherland’s various domestic accounts as capital contributions and loans.
According to the indictment, on several occasions between June 2012 and September 2012, Sutherland attempted to obstruct a federal investigation by providing fraudulent documents, including fictitious loan agreements and documents purportedly alleging his lack of control over STS’s bank account in Bermuda.
Sutherland had his initial appearance today in federal court. The penalty for filing a false tax return is a maximum term of three years in prison and a $250,000 fine per count. The obstruction of official proceedings charge carries a maximum term of 20 years in prison and a $250,000 fine.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
IRS-CI is handling the investigation. Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Charleston man pleads guilty to Federal drug distribution chargeRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Gregory Woods, 38, of Charleston, plead guilty in federal court in Charleston to using a cell phone to facilitate the distribution of cocaine and possession of marijuana for distribution.
During his hearing, Woods admitted that on June 8, 2011 he arranged to sell a confidential informant working with law enforcement an ounce of cocaine through telephone calls made on his cell phone. The confidential informant travelled to Woods’ residence in Charleston where he bought an ounce of cocaine. After the drug sale, officers executed a search warrant at Woods’ residence on Early Street and recovered 13.9 grams of cocaine, 176 grams of marijuana, and a gun. Woods admitted that he possessed the marijuana located in his house for distribution.
Woods faces up to nine years imprisonment when he is sentenced on January 4, 2016.
The case was investigated by the Metropolitan Drug Enforcement Network Team (MDENT). The prosecution is being handled by Assistant United States Attorney Monica D. Coleman.
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Centralia Woman Pleads Guilty to Meth ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that RACHEL L. REEVE, 24, of Centralia, Illinois, pleaded guilty to Conspiracy to Manufacture and Distribute Methamphetamine, and Possession of Pseudoephedrine with the Intent to Manufacture Methamphetamine, charges returned against her by a federal grand jury sitting in East St. Louis, Illinois, in November 2014. The offenses are in violation of the federal Controlled Substances Act. The conspiracy charge carries a statutory penalty of not less than 5 years’ imprisonment up to 40 years’ imprisonment, not less than 4 years’ supervised release to follow imprisonment, and up to a $4 million fine. The possession charge carries a statutory sentence of not more than 20 years’ imprisonment, up to 3 years’ supervised release to follow imprisonment, and up to a $250,000 fine. A $100 assessment for each count is mandatory.
According to court documents, the conspiracy operated from approximately December 2012, to February 21, 2014, in Marion, Clinton and Jefferson Counties. During this time, Reeve obtained and provided pills containing pseudoephedrine to others in the conspiracy who manufactured methamphetamine, and she knew the pills would be used for that purpose. She generally obtained cash in exchange for the pills which she used to support her own drug habit.
Information leading to the charges against Reeve was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Centralia Man Sentenced to 84 Months for Conspiracy to Manufacture MethamphetamineRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that BRIAN LEE FEAR, 40, of Centralia, Illinois, was sentenced on September 18, 2015, to 84 months’ imprisonment, 4 years’ supervised release, a $500 fine and a $300 special assessment. There is no parole in the federal system. Sentencing followed Fear’s May 27, 2015, guilty plea to Conspiracy to Manufacture and Distribute Methamphetamine, Possession of Equipment, Chemicals, Products and Materials with Intent to Manufacture Methamphetamine, and Possession of Pseudoephedrine with the Intent to Manufacture Methamphetamine. The offenses are in violation of the federal Controlled Substances Act.
According to court documents, from approximately December 2012, to February 21, 2014, in Marion, Clinton and Jefferson Counties, Fear and others worked together to manufacture methamphetamine to support their drug habits and to make extra cash. Fear produced methamphetamine using the "one-pot" or "shake and bake" method, and used as many as 30 people to obtain pills containing pseudoephedrine for use in the production process.
Information leading to the conviction of Brian Fear was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Cattaraugus Man Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Joseph Tigano, III, 51, who was convicted of manufacturing in excess of 1000 marijuana plants; possession with intent to distribute marijuana; maintaining a premises for the manufacturing of marijuana; conspiracy to manufacture and possess marijuana and maintain a premises for the manufacturing of marijuana; and being a felon in possession of a firearms, was sentenced to 20 years in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on July 8, 2008, law enforcement officers executed a search warrant at the defendant’s Mill St. factory. During the search, officers discovered an active hydroponic marijuana grow operation which included 1414 plants. In addition, officers seized 100 pounds of harvested and processed marijuana packaged for sale. The estimated value of the processed marijuana is between $300,000 and $500,000.
Officers also seized three firearms, United States currency, money orders, and savings bonds. Also seized were a 2007 Cadillac Escalade, a 2005 Jeep Cherokee Limited, and a 2007 Haulmark Trailer.
Tigano was arrested on July 8, 2008 along with his father, Joseph Tigano, Sr., who was also convicted and sentenced to time served and three years supervised release.
Today’s sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, with the assistance of the Cattaraugus County Sherriff’s Department, under the direction of Sheriff Timothy Whitcomb, and the Southern Tier Regional Task Force, under the direction of Cattaraugus County Sheriff’s Sergeant Ronald Lott, the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, and the Erie County Sheriff’s Department Aviation Unit, under the direction of Timothy Howard.Brooklyn Man Pleads Guilty in Manhattan Federal Court in Connection with Advance Fee SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that OCTAVIO LOMBARDO, a/k/a “Otto Lombardo,” pled guilty in Manhattan federal court to one count of wire fraud stemming from his scheme to defraud small business owners of more than $1 million through an advance fee scheme. In connection with the scheme, LOMBARDO induced more than 30 business owners to pay an upfront due diligence fee that was purportedly necessary to obtain loans for the business owners. Instead, LOMBARDO used the vast majority of the money he received from the business owners – over $1 million in total – on his own personal expenses, including rental payments, club dues, food, and other personal items. LOMBARDO was arrested on December 4, 2014, and pled guilty today before United States District Judge Jesse M. Furman.
According to the Complaint, the Indictment, and other statements made in open court:
From 2007 through 2013, LOMBARDO engaged in a fraudulent scheme to mislead small business owners into paying an upfront due diligence fee, typically in the amount of $25,000, in connection with loans that LOMBARDO promised to obtain for the small business owners. During this period, LOMBARDO convinced the business owners he had the ability and expertise to structure investment loans for their businesses through LOMBARDO’s purported exclusive relationships with small community banks across the United States. In fact, LOMBARDO had no ability to provide such financing, and none of the businesses at issue received a loan through LOMBARDO during this period of time.
In connection with the scheme, LOMBARDO made a series of false and misleading misrepresentations to the business owners, including: (i) that LOMBARDO could obtain interest-only loans in amounts ranging from $1 million to $75 million by consolidating the lending power of several small community banks into a trust, which he would manage through his holding company, Lombardo & Company; (ii) that, in order to structure the loan appropriately, LOMBARDO needed to conduct due diligence of the businesses, including by obtaining corporate and financial documentation, and by conducting site visits; (iii) that LOMBARDO required a non-refundable upfront payment – generally in the amount of $25,000 – to cover the expenses incurred during the due diligence process, including legal and other professional fees, taxes, appraisals, and the like; and (iv) that this fee would be incorporated into the final loan agreement, so that the business owners would ultimately “get back” the upfront payment once the financing was in place.
As a result of these misrepresentations, LOMBARDO obtained more than $1 million in so-called due diligence payments from more than three dozen business owners. LOMBARDO spent the vast majority of the due diligence payments on his own personal expenses, including, among other things, rental payments, club dues, food, and other personal items. For example, LOMBARDO spent more than $300,000 on rental payments for his residence in Brooklyn, more than $100,000 on membership dues for a private gun club located in Manhattan, and more than $50,000 on restaurants and purchases of wine and liquor.
Once he received the due diligence payments, LOMBARDO made a variety of excuses to the business owners – including, among others, that he was having health problems and had been hospitalized, that he was traveling, and that he had a new grandchild – in order to explain the delay in closing the loans.
Ultimately, LOMBARDO did not provide any of the loans to the business owners as promised.
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LOMBARDO, 68, of Brooklyn, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. LOMBARDO is scheduled to be sentenced by Judge Furman on January 6, 2016 at 3:00 p.m.
Mr. Bharara praised the work of the Federal Bureau of Investigation.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Amy Lester and Damian Williams are in charge of the prosecution.
Biotech Company and CEO Agree to Resolve Allegations of Grant FraudRead the Press Release
BOSTON – Sterling Biomedical LCC (Sterling), a biotechnology company in Lynnfield, and its president and CEO, Dr. Michael Szycher, have agreed to pay $200,000 to resolve allegations that they violated the False Claims Act by submitting false claims for National Science Foundation (NSF) grants. In addition, Sterling and Szycher have agreed not to apply for National Science Foundation funding for five years.
“There are many deserving researchers who apply for government grants in order to perform novel and groundbreaking research,” said United States Attorney Carmen M. Ortiz. “It is both unacceptable and unethical for scientists to submit falsified information in order to gain a competitive edge among applicants for government grants.”
Allison Lerner, Inspector General at the National Science Foundation, said, “This fraudulent scheme illegally diverted valuable and scarce federal research dollars from advancing new technologies. I commend the U.S. Attorney’s Office for its strong support in this case.”
Between 2009 and 2011, Sterling received $539,000 in grant funding from the National Science Foundation. This settlement resolves allegations that in proposals submitted to the National Science Foundation, Szycher misrepresented the size and assets of Sterling and its ability to perform the proposed research. The government further alleges that Szycher failed to perform the funded research as described for one of the grants received, and then fraudulently represented to NSF that he had completed the research.
U.S. Attorney Ortiz and NSF IG Lerner, made the announcement today. The matter was handled by Assistant U.S. Attorney Giselle J. Joffre and former Assistant U.S. Attorney Veronica Lei of Ortiz’s Civil Division.
Bayer CropScience to Enhance Safeguards at Chemical Facilities in Four States to Settle Violations at a West Virginia PlantRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced a $5.6 million settlement with Bayer CropScience LP to resolve violations of federal chemical accident prevention laws at its facility in Institute, West Virginia, where an explosion killed two people in 2008. Under the settlement, Bayer CropScience committed to spending $4.23 million to improve emergency preparedness and response in Institute and protect the Kanawha River, pay a $975,000 penalty, and spending approximately $452,000 to implement a series of measures to improve safety at chemical storage facilities across the United States.
“Failures by a chemical manufacturer to comply with safety, accident prevention, and response requirements can have catastrophic consequences,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The Department of Justice is committed to worker safety. Under this judicially enforceable settlement, Bayer Crop Science will not only pay a penalty but commits to significant improvements in preparedness and response capabilities at its facilities across the country.”
“The tragic accident at the Bayer CropScience facility in West Virginia underscores the need for hazardous chemicals to be stored and handled in accordance with the law to protect worker health and the environment,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “This settlement will establish important safeguards at its facilities across the country and improve emergency response capabilities in the Institute, West Virginia community.”
Under the settlement, Bayer CropScience will implement a series of steps to prevent future chemical releases at its facilities in West Virginia, Texas, Missouri and Michigan by improving inspections to identify potential safety issues and standardize facility safety operating procedures. At the facility in Institute, the company will conduct emergency response exercises with local responders and ensure proper certification of facility environmental management systems. Bayer must complete the majority of these actions within three years.
The nearly $4.23 million for environmental projects will benefit the Institute community by improving mobile communications for local first responders, providing emergency response equipment and training for local fire and police departments, shelter-in-place training and hazardous waste collections at local public schools and installing equipment to prevent pollution from water used in Bayer CropScience’s manufacturing process from reaching the Kanawha River. Local emergency responders may start receiving equipment as early as December 2015.
The complaint details numerous problems that arose at the pesticide manufacturing facility where the company did not comply with its standard operating procedures designed to prevent accidental releases. In 2008, a new digital control system was installed, but safety interlock associated with the control system was not properly engaged at startup. Employees were not fully trained to understand or operate the system and failed to follow procedures for sampling, temperature control and flow safeguards. The result was an uncontrollable buildup in a treatment unit causing a chemical reaction resulting in the explosion, fire and loss of life. During the incident, the company delayed emergency officials trying to access the plant, and failed to provide adequate information to 911 operators.
The consent decree, lodged in the U.S. District Court for the Southern District of West Virginia, is subject to a 30-day public comment period and approval by the federal court.
For a copy of the consent decree, go to http://www.justice.gov/enrd/consent-decrees.
Bakersfield Methamphetamine Trafficking Defendant Sentenced to over 10 Years in PrisonRead the Press Release
FRESNO, Calif. — Manuel Riviera-Felix, aka Felipe Garcia, 27, of Mexico, was sentenced today by United States District Judge Lawrence J. O'Neill to 10 years and 11 months in prison for distribution of methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Rivera-Felix was a leader of a large scale drug organization in Bakersfield responsible for the importation and sale of large quantities of methamphetamine. Between March 1, 2014, and July 10, 2014, Rivera-Felix conspired with Juan Angel Lopez, 33, of Bakersfield, Edi Vega Bustamante 22, of Mexico, and others to distribute up to 45 kilograms of methamphetamine. Lopez pleaded guilty to conspiring to distribute and possess with intent to distribute methamphetamine and was sentenced to seven years and six months in prison. Bustamante pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to five years in prison.
This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Bakersfield Police Department, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney prosecuted the case.
Attorney General Loretta E. Lynch Delivers Remarks at the White House Champions of Change Event on Building Bridges Between Youth and Law EnforcementRead the Press Release
Contact: Public Affairs (202) 514-2007
Remarks as prepared for delivery
WASHINGTON, D.C.
Thank you, Roy [Austin], for that kind introduction – and for the extraordinary work that you and so many of your colleagues at the White House do to lift up our communities, to inspire our young people and to mobilize change agents like those we’re here to honor today. It’s a pleasure – and an immense privilege – to join so many passionate advocates, dedicated public servants and devoted law enforcement officers as we recognize 14 truly remarkable civic leaders: our Champions of Change.
These outstanding individuals exemplify the selfless men and women across the United States who are asking what they can do to improve the lives of others – and then doing it. They are working to ensure that our youth have the chance to fulfill their potential; that cycles of poverty, criminality and incarceration are dismantled; and that those grappling with homelessness, violence and addiction obtain a second chance at a better life. And by devoting their precious time and wide-ranging talents to the causes they champion, they are helping to mend the fabric of trust, respect and common purpose that all communities need to thrive. They exemplify what we have come to know: that change that can galvanize a nation often begins with a single human connection.
Actions like theirs are needed now more than ever. Over the course of the last year, we have seen all too frequently how relationships between communities and law enforcement can grow strained; how trust can be broken or lost; and how simmering tensions can erupt into unrest. The consequences are real – for sincere public safety officers, the guardians, who seek to ensure that all are sheltered under their umbrella of protection and for residents, particularly residents of color, who feel a sense of disconnection and despair that is all too familiar from a long and painful history of discrimination – and who often feel like they’re not being heard; like they’re not being believed; and like they’re not being protected. This is an intensely challenging issue and I could not be more proud of these Champions of Change and those like them throughout the nation, who believe that – despite the magnitude of the challenges we face – all of us can play a part in working together to ensure that every American is treated with fairness, with dignity and with respect; to maintain safe neighborhoods and supportive environments; and to establish a sense of community – of common aims and common efforts – in cities and towns across America. We are here today to honor those who exemplify nothing less than the essentially American belief that no matter the odds or the problem, change is possible and that it can begin with them.
The Department of Justice is committed to doing our part to help. Last September, we launched the National Initiative for Building Community Trust and Justice, a comprehensive effort to modernize training; develop evidence-based strategies; and advance research that will bolster law enforcement credibility, enhance procedural justice, reduce implicit bias and drive racial reconciliation. Our Civil Rights Division continues to work with police departments around the country to ensure constitutional policing in their jurisdictions. And our Office of Juvenile Justice and Delinquency Prevention is leading and supporting a variety of community-centered efforts to reduce youth and gang violence.
Of course, real change is spearheaded by those who are grappling with real problems every day. Our goal is to also tap into the innovative programs and exciting ideas that are emerging from communities across the country. That is why I’ve convened a series of community policing roundtables that have allowed me to see the extraordinary work that’s underway in diverse neighborhoods from coast to coast. In Birmingham, Alabama, I learned about the Citizen’s Police Academy, which allows local young people to form positive relationships with law enforcement officers and to understand the difficult jobs they do every day. In Cincinnati, Ohio, I observed an innovative mentoring program that puts police in the classroom as tutors, helping the children they work with see them as helpers, friends and peacemakers. In East Haven, Connecticut, I saw community leaders and public officials speak with pride about the strides they had made together just three years after a Justice Department investigation uncovered discriminatory tactics and the use of excessive force. And in Pittsburgh, Pennsylvania, I saw a police department newly committed to operating with accountability and to pursuing excellence. Later this week, I will complete the first phase of my tour with roundtables in Seattle, Washington and Richmond, California and I am excited to keep these important conversations going as more communities undertake the difficult but necessary work of growing more cohesive, more unified and more empowered. all of these cities have come back from the brink of profoundly challenged police community relationships to build a working relationship that recognizes that our communities are large enough to encompass those who protect them, that our guardians are strengthened when they truly know their charges and their needs and that all voices must be at the table to create and sustain meaningful change.
All of us at the Justice Department strongly support and encourage that work and those goals. That’s why I’m proud to announce today that the Justice Department’s Office of Community Oriented Policing Services – more commonly known as the COPS Office – is providing more than $107 million in new grants to support the hiring and retention of approximately 870 officers at roughly 200 agencies and municipalities throughout the United States. These awards will not only keep more officers on the beat – they will address specific issue areas like violent crime, school safety, homeland security and that which underlies it all: community trust. They will help local agencies deliver on the recommendations for community policing developed by the President’s Task Force on 21st Century Policing. And they will extend the remarkable record of support, leadership and results that the COPS Office has earned over the last two decades.
I am also pleased to give you a major update on the Body-Worn Camera Pilot Partnership Program that we kicked off in May. Our Bureau of Justice Assistance designed the program 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. Initial expectations were that we would be able to support approximately 50 agencies. But today, I am happy to report that we intend to fund 73 local and tribal agencies across the country with more than $19.3 million for their body-worn camera programs. An additional $2 million will go toward training and technical assistance for agencies looking to develop or expand their programs. And another $1.9 million will support research in three police departments – Miami, Milwaukee and Phoenix – on the impact of body-worn cameras on a range of outcomes, including community relations. That kind of evaluation is crucial as we continue to weigh the advantages of more widespread use of cameras in policing.
A third and final piece of news comes from our Office of Juvenile Justice and Delinquency Prevention, which is launching a new initiative to bring young people together with the police officers in their communities. OJJDP is awarding $500,000 to a joint effort of the International Association of Chiefs of Police and the Coalition for Juvenile Justice to convene a youth and law enforcement roundtable and to develop an institute for disseminating best practices and sharing new approaches on issues of juvenile justice. Their unique partnership will go a long way toward fostering strong, collaborative relationships among young people, their families and those charged with their protection. And it unites a wealth of experience and expertise that will be an asset to law enforcement agencies developing strategic plans for their long-term improvement.
Each of these new efforts gives me hope that we can help to address these vital and complicated issues through sustained attention, honest conversation and thoughtful public policy. Each of the leaders here this afternoon gives me confidence that our commitment will yield progress. And each of the Champions we’re here to celebrate reminds me that our ultimate success depends on the goodwill, imagination and determination of motivated men, women and children across this country. I want to thank each of you for your exceptional work. I want to applaud each of you for your inspiring example. And I want you to know that I am honored to stand beside you and proud to count you as partners in our common pursuit of equality, opportunity and justice for all.
And now, I invite everyone to join me in saluting our Champions of Change, whom it’s my privilege to introduce at this time:
- Sergeant Alex Bielawski from Grand Prairie, Texas – a 30-year veteran of the Grand Prairie Police Department and founder of a youth boxing program that brings together police officers, young athletes, parents and school officials.
- Indeya Smith from Grand Prairie, Texas – a student at Tarrant County Community College, an intern with the Grand Prairie Police Department and a nationally ranked boxer who has trained with the Grand Prairie Police Youth Boxing Program.
- Anthony Davis from Bonner Springs, Kansas – a School Resource Officer for the Bonner Springs/Edwardsville School District and a criminal justice teacher at Bonner Springs High School.
- Blake McMahan from Bonner Springs, Kansas – the President of the Criminal Justice Club at Bonner Springs High School and a volunteer for the Bonner Springs Police Department.
- Ric DeLand from Portland, Oregon – a 25-year veteran of the Portland Police Bureau and the leader of an innovative, relationship-based foot patrol pilot project that reduced crime by 25 percent and strengthened community cooperation.
- Celia Luce from Portland, Oregon – a Peer Mentor with Outside In, an organization helping to connect homeless youth with the resources and the support they need.
- Captain Jacques Gilbert from Apex, North Carolina – a 25-year veteran of the Apex Police Department for over 25 years who worked with young people to build a public skate park for local youth.
- Tracy Stallworth from Apex, North Carolina – an aspiring professional skate boarder who worked with Captain Gilbert to make the Rodgers Family Skate Plaza a reality.
- Hiram Otero from Hartford, Connecticut – a Faith Based Initiative Community Service Officer for the South District of Hartford and organizer of the Charter Oak Cultural Center’s Good Vibrations youth mentoring program.
- Kayke Lopes from Hartford, Connecticut – a seventh-grader at Hartford Magnet Trinity College Academy and a participant in the Good Vibrations program.
- Laurie Reyes from Montgomery County, Maryland – a 17-year veteran of the Montgomery County Police Department and founder of the Department’s Autism and Intellectual/Developmental Disabilities Outreach Program.
- Jake Edwards from Germantown, Maryland – a seventh-grader at Kennedy Krieger School and an advocate for enhanced understanding between law enforcement and those with autism.
- Bill Singleton from Milwaukee, Wisconsin – an officer in the Milwaukee Police Department’s Office of Community Outreach & Education and a National Advisor for the Center for Court Innovation’s Police-Youth Dialogue Project.
- And finally, Erica Lofton from Milwaukee, Wisconsin – a 14-year-old violence-prevention advocate and founder of Girls in Action, Inc., an organization that promotes leadership among young girls.
Ladies and gentlemen – our Champions of Change.
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Area Tax Preparer Sentenced on Charges Involving Filing False Tax ReturnsRead the Press Release
St. Louis, MO – ANGEL BAILEY-DYSON, a tax preparer who worked for Tax King, a local tax preparation business, was sentenced to one year and one day in prison and ordered to pay $28,694 restitution to the IRS. Bailey-Dyson previously pled guilty to preparing false tax returns for customers for tax years 2011 and 2012. The false returns minimized the customers’ liability and thereby maximized the customers’ tax refunds.
Bailey-Dyson, St. Louis, Missouri, pled guilty in June to four felony counts of filing false tax returns. She appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by Internal Revenue Service-Criminal Investigation.
Amarillo Man Who Robbed Amarillo National Bank is Sentenced to Serve Total of 212 Months in Federal PrisonRead the Press Release
AMARILLO, Texas — An Amarillo, Texas, man, William Eugene Boyd, 51, who pleaded guilty in July 2015 to one count of bank robbery, was sentenced this afternoon by U.S. District Judge Mary Lou Robinson, announced U.S. Attorney John Parker of the Northern District of Texas.
Boyd was sentenced to 188 months in federal prison for the bank robbery. In addition, Judge Robinson sentenced him to an additional 24 months in federal prison, to run consecutively, for committing this bank robbery while on supervised release on another bank robbery conviction in the Amarillo Division of the Northern District of Texas.
According to documents filed in the case, on March 13, 2015, a robber, later identified as Boyd, approached a teller at the ANB located at 2401 S. Coulter, in Amarillo, and told her, “This is a robbery.” He instructed her to give him all the money, nothing marked, and not make a sound. He told her that if she handed over all her money she would not get hurt, and he kept his left hand by his waistband, making her fearful he had a weapon. The teller complied with his instructions and Boyd left the bank with the cash.
After providing surveillance photographs to the media that were broadcast to the public, Amarillo Police Department investigators received several tips from Boyd’s friends/family members identifying him as the robber. Investigators located a hat matching the color and style of the one Boyd wore during the robbery in a vehicle registered to Boyd’s mother, and bank employees later identified him in a photo line-up.
The Federal Bureau of Investigation and the Amarillo Police Department investigated.
Assistant U.S. Attorney Joshua Frausto prosecuted.
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Albany Police Department Funded for Body-Worn CamerasRead the Press Release
ALBANY, NEW YORK - Attorney General Loretta Lynch today 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 investment includes $19.3 million to purchase body-worn cameras, $2 million for training and technical assistance and $1.9 million to examine the impact of their use. 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.
"As we support local leaders and law enforcement officers in their work to protect their communities, we are mindful that effective public safety depends not simply on taking bad guys off the streets, but on winning – and keeping – the confidence of the people these officers are sworn to serve," said Attorney General Loretta Lynch. "The awards we’re announcing today will enhance our understanding [of this technology] even further, and I am confident that they will help our many local law enforcement partners do an even better job of serving their communities."
The City of Albany Police Department’s $133,305 grant award is one of four grants received by New York State agencies. The City of Rochester, Village of Spring Valley and City of White Plains also received funding.
"It is fitting that the Albany Police Department, whose leaders and officers believe in community policing, has been chosen for this funding award," said United States Attorney Richard S. Hartunian. "Advancements like this will foster transparency and thereby improve police-community relations."
"Over the past few years, the Albany Police Department has made tremendous changes to ensure that we are building trust and legitimacy within our community," said Albany Police Chief Brendan Cox. "By outfitting our officers with body-worn cameras, the Albany Police Department can continue to bridge the gap between the members of our community and of the police department through a transparent process that includes stakeholder input in the planning and implementation of a body-worn camera program. I would like to thank Attorney General Loretta Lynch for her leadership in making this funding available at a time when police accountability and community confidence in the police are the defining principles of 21st century policing."
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.
In addition to funds to help purchase body-worn cameras and train officers in their use, grants under the Bureau of Justice Assistance’s (BJA’s) Smart Policing Initiative will support police departments in Miami, Milwaukee, and Phoenix as they examine the impact of body-worn cameras on citizen complaints, internal investigations, privacy, community relationships, and cost effectiveness. Each of these three departments will partner with a research institution to gain insight on the merits of deploying body-worn camera programs.
Lynch announced the award today during a White House Champions of Change event co-hosted by the Office of Justice Programs and the Community Oriented Policing Services Office (COPS). The event honored law enforcement officers and young people who are leading efforts to improve relationships between law enforcement and youth in their communities.
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.
About the Office of Justice Programs (OJP)
OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov
Adventist Health System Agrees to Pay $115 Million to Settle False Claims Act AllegationsRead the Press Release
Adventist Health System has agreed to pay the United States $115 million to settle allegations that it violated the False Claims Act by maintaining improper compensation arrangements with referring physicians and by miscoding claims, the Justice Department announced today. Adventist is a non-profit healthcare organization that operates hospitals and other health care facilities in 10 states.
“Unlawful financial arrangements between heath care providers and their referral sources raise concerns about physician independence and objectivity,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Patients are entitled to be sure that the care they receive is based on their actual medical needs rather than the financial interests of their physician.”
The settlement announced today resolves allegations that Adventist submitted false claims to the Medicare and Medicaid programs for services rendered to patients referred by employed physicians who received bonuses based on a formula that improperly took into account the value of the physicians’ referrals to Adventist hospitals. Federal law restricts the financial relationships that hospitals and clinics may have with doctors who refer patients to them.
“Adventist-owned hospitals, such as Park Ridge, allegedly paid doctors’ bonuses based on the number of test and procedures they ordered,” said Acting U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. “This type of financial incentive is not only prohibited by law, but can undermine patients’ medical care. Would-be violators should take notice that my office will use the False Claims Act to prevent and pursue health care providers that threaten the integrity of our healthcare system and waste taxpayer dollars.”
“Companies that financially reward physicians in exchange for patient referrals – as the government contended in this case – undermine the physicians’ impartial medical judgment at the expense of patients and taxpayers,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) in Atlanta. “We will continue to investigate such wasteful business arrangements.”
The settlement also resolves allegations that Adventist submitted bills to Medicare for its employed physicians’ professional services containing certain improper coding modifiers, and thereby obtained greater reimbursement for these services than entitled.
The allegations settled today arose from two lawsuits filed respectively by whistleblowers Michael Payne, Melissa Church and Gloria Pryor, who worked at Adventist’s hospital in Hendersonville, North Carolina, and Sherry Dorsey, who worked at Adventist’s corporate office, under the qui tam provisions of the False Claims Act. The act permits private parties to file suit on behalf of the United States for false claims, and to share in any recovery. The whistleblowers’ share of the settlement has not yet been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $25 billion through False Claims Act cases, with more than $16 billion of that amount recovered in cases involving fraud against federal health care programs.
The cases, United States ex rel. Payne, et al. v. Adventist Health System/Sunbelt, Inc., et al. No. 12-856 (W.D.N.C), and United States ex rel. Dorsey v. Adventist Health System Sunbelt Healthcare Corp., et al., No. 13-217 (W.D.N.C), were handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Western District of North Carolina and HHS-OIG. The claims settled by this agreement are allegations only, and there has been no determination of liability.
20 September 2015
Rhode Island Law Enforcement Teams up to Participate in National Prescription Drug Take Back ProgramRead the Press Release
On September 26, 2015 from 10 a.m. to 2 p.m., Rhode Islanders are encouraged to drop off their unused and expired prescription drugs at one of more than 30 locations across the state as part of the national Prescription Drug Take Back Program. The program was created in 2010 by the federal Drug Enforcement Administration (DEA) to prevent pill abuse and theft by allowing residents to rid their homes of potentially dangerous expired, unused, and unwanted prescription drugs.
A list of locations and participating police departments can be found at www.dea.gov or www.riag.ri.gov. The service is free and anonymous, no questions asked. In addition, many police departments provide free drop-off boxes year-round. Contact your local police department to see if they offer the service. ((Note: The DEA cannot accept liquids or needles or sharps, only pills or patches.))
"Many Americans are not aware that medicines which languish in home cabinets are highly vulnerable to diversion, misuse, and abuse," said DEA Special Agent in Charge Michael J. Ferguson. "Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisoning and overdoses due to the illegal use of these drugs. Please take the time to clean out your medicine cabinet and make your home safe from drug theft and abuse."
US Attorney Peter F. Neronha added, “America has a prescription pill problem, and Rhode Island is no exception. The overprescribing, diversion, and misuse of prescription opioids is a significant threat to public health in its own right, made worse by the fact that in many instances it leads to heroin abuse, often with catastrophic results. There is no single solution to this problem. But one thing that can help is to provide a safe and effective way to dispose of unneeded prescription pills, and this take-back does precisely that.”
“With the disturbing and dangerous rise of prescription opioid addiction and abuse in Rhode Island, this take back program is a simple and anonymous way for people to rid homes of potential dangers. Opioid addiction and abuse is one of the most serious public health and safety threats within our state. While there are many fronts on which we need to fight this war, this program is a key piece to ending the cycle of addiction by eliminating the temptation to use these pills in the first place,” said Attorney General Peter F. Kilmartin.
In 2014, the DEA issued regulations that would legally expand options for disposing of controlled substances beyond the scheduled prescription drug take back days. Recognizing the success and popularity of the one-day events, the DEA decided to once again support the program nationwide in partnership with state and local law enforcement. In Rhode Island, there are several police departments that offer this service year round. In addition, other methods for safe disposal of prescription medications are available throughout the state including at pharmacies and healthcare facilities.
Last September, Americans turned in 309 tons (over 617,000 pounds) of prescription drugs at nearly 5,500 sites operated by the DEA and more than 4,000 of its state and local law enforcement partners. When those results are combined with what was collected in its eight previous Take Back events, DEA and its partners have taken in over 4.8 million pounds - more than 2,400 tons - of prescription medications.
This initiative addresses a vital public safety and public health issue. 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 a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
For more information about the disposal of prescription drugs or about the September 26 Take Back Day event, visit www.riag.ri.gov or www.dea.gov.
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18 September 2015
Woodlawn Man Exiled to 100 Months in Prison for Illegal Possession of Stolen Guns and AmmunitionRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake, sentenced Nishon Rainner, age 31, of Woodlawn, Maryland, today to 100 months in prison, followed by three years of supervised release, for being a felon in possession of guns and ammunition. Chief Judge Blake also sentenced Rainner to 18 months in prison, consecutive to the sentence on his gun conviction, for violation of his supervised release on a previous federal conviction.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the evidence presented at Rainner’s three day trial and other court documents, on March 12, 2015, officers from the Baltimore County Police Department executed a search warrant at Rainner’s rented house in Woodlawn, as part of an investigation by the Baltimore County Regional Auto Theft Task Force into Rainner’s involvement in an organized automobile theft organization.
In the family room on the first floor of the house, police officers recovered a loaded 7.62 caliber AK-47 style semi-automatic rifle and an unloaded 12-gauge tactical shotgun stored together in a plastic bag leaning against the wall; the bag also contained other loose ammunition compatible with the AK-47. Inside a small closet nearby, which housed the water heater, officers located a loaded .40 caliber handgun above the doorframe. The handgun was located next to a sunglass case containing additional ammunition and a Washington, D.C. driver’s license with a picture of Rainner in the name “Gary Simon.” All three firearms were operational and none were secured or locked in any way to prevent them from being fired. Police also found a second Washington, D.C. license with a photograph of Rainner in the name of Rodney Nicolas. Further investigation revealed a third false Washington, D.C. driver’s license with Rainner’s picture in the name of Brandon Rucker. It was determined that the information on the false licenses matched that of individuals with those same names who lived in Florida and North Carolina.
During the execution of the search warrant at the Woodlawn house, police officers recovered three stolen cars and found the keys to the stolen cars hanging on a key rack in the main entry of the house.
During the search, officers also found mail with Rainner’s name and the address of the house in Woodlawn, as well as Washington, D.C. traffic citations issued to Gary Simon and correspondence addressed to “Rodney Nicholas,” and over $14,000 in cash. Finally, the police officers found a lease for the Woodlawn home, which was signed by Rainner, and a receipt for $10,600, for six-months’ rent, paid in cash. Rainner, his girlfriend, and her children ages 5 and 9, were present in the house at the time of the execution of the warrant, and were listed as the only occupants of the townhome on the lease.
Rainner subsequently agreed to make a statement to the officers. During interviews with police Rainner denied living at the Woodlawn residence. Rainner also told law enforcement that he did not know who owned the guns, nor how they had gotten into the house.
According to witness testimony, the firearms were stolen from their rightful owners. Bank records for Rainner indicated that on the dates two of the guns were stolen he was in the area where the thefts occurred. The third stolen weapon had been stored in the basement of a home where Rainner had previously lived and had stored items in the basement, as well.
Court documents show that Rainner has 16 previous convictions, including the illegal possession of firearms, stolen cars, false identifications, and false statements.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney David P. Kehoe and Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Winnebago Man Sentenced for Shots Fired at A House and Parked CarRead the Press Release
United States Attorney Deborah R. Gilg announced that Roman Perales, age 17, was sentenced upon his conviction for assault with intent to damage real or personal property. Senior United States District Court Judge Lyle E. Strom sentenced Perales to 41 months imprisonment to be followed by three years of supervised release. Perales was further ordered to pay restitution in the amount of $780 for damage done to a vehicle. Although Perales is only 17 years of age, the United States was successful in having him treated as an adult due to the nature of the crime. Perales will be transferred to an adult correctional facility once he turns 18.
On September 22, 2014, a Winnebago resident drove to the Winnebago Police Station to report that someone had fired shots towards his residence and a vehicle parked in the driveway. The defendant was identified as a suspect because of a prior dispute the defendant had with an occupant of the residence. The defendant’s girlfriend told police that the defendant had told her he was going to do something to get even for an earlier assault against him. Another friend of the defendant told police that the defendant said he was going to shoot up the resident’s car. The defendant even boasted on Facebook that he was going to get revenge utilizing a Glock handgun.
Numerous shell casings were found on a hill behind the residence which would fit into a 9mm Glock. The investigation revealed that the vehicle in the driveway on the side of the home was struck numerous times by bullets. The homeowner and his family were inside the home at the time of the shooting and a bullet entered the home near where the homeowner’s family was sitting.
This case was investigated by the Bureau of Indian Affairs.
Washington Man Sentenced for Bringing Drugs and Prostitution to Missoula AreaRead the Press Release
MISSOULA – Yusuf Deshawn Reeves, 47, of Spokane Valley, Washington, was sentenced Thursday in Missoula federal court to drug and prostitution-related racketeering charges. In May, Reeves plead guilty to one count of conspiracy to possess with the intent to distribute methamphetamine and heroin and one count of interstate travel in aid of racketeering. Chief U.S. District Court Judge Dana Christensen Sentenced Reeves to 121 months incarceration on the conspiracy to distribute charge and 60 months for the racketeering charge. The sentences will run concurrently. Following his release, Reeves will be subject to five years supervised release for the drug charge and three years for the racketeering charge, also to run concurrently.
In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have demonstrated that between February and November of 2014, Reeves possessed and entered into an agreement with co-conspirators to distribute more than 50 grams of methamphetamine and more than 100 grams of heroin. In addition, between June and August of 2014, Reeves traveled in interstate commerce with the intent to promote, manage, establish, carry on or facilitate prostitution. The government was prepared to prove that during this time period, Reeves traveled between Spokane, Washington, and Missoula Montana, transporting drugs and at least four women with the intent to promote prostitution in violation of Montana Law. Reeves is the second of four co-conspirators to be sentenced in this prostitution and drug-running operation.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, Montana Violent Crime Task Force, Missoula Street Crimes Unit, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
United States Intervenes in False Claims Act Lawsuit against Mississippi Hospital, Two Individuals and Management Company for Overcharging Medicare ProgramRead the Press Release
The United States has intervened in a lawsuit and filed a complaint against H. Ted Cain, Julie Cain, Corporate Management Inc. and Stone County Hospital Inc. for submitting false claims to the Medicare program by knowingly charging excessive and ineligible expenses from 2002 to the present. Stone County Hospital is a critical access hospital located in rural Mississippi. Corporate Management Inc. is a management company that provides management services to Stone County Hospital. Ted Cain owns and controls the hospital and the management company.
Most acute care hospitals are reimbursed by Medicare under a variety of prospective payment systems, which provide a fixed payment based on a patient’s diagnosis or treatment. However, to encourage hospital coverage in rural, underserved areas, critical access hospitals, like Stone County Hospital, are exempted from these prospective payment systems and are entitled to receive 101 percent of the actual and allowable costs of providing Medicare beneficiaries with outpatient, inpatient, laboratory, ambulance and post-acute care services. However, Medicare requires that costs charged by critical access hospitals be reasonable and necessary. Medicare also prohibits hospitals from charging the program for luxury items, like expensive automobiles.
The government’s complaint alleges that Ted and Julie Cain, the hospital and the management company abused the special Medicare rules for rural hospitals. In particular, the government contends that the Cains claimed to be serving the hospital in various management and directorship positions but in fact did little of the work for which the hospital paid them and any work they did duplicated work performed by the hospital and the management company staff, which were also paid by the hospital. The government also contends that Ted Cain improperly claimed the expenses for his personal luxury automobiles on the hospital’s cost reports and his management company wrongfully charged to the hospital work that Cain did at his other businesses.
“The Medicare reimbursement rules for critical access hospitals are intended to ensure that Medicare beneficiaries living in rural areas receive access to the health care services they need,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will aggressively pursue providers who try to take advantage of these rules to line their own pockets.”
“In a state like ours where nearly a third of the hospitals are critical access hospitals, many of our citizens depend on this very important system, and we will protect it by ferreting out fraud where it exists,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi.
The government’s complaint was filed in a lawsuit initially brought under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims for government funds and to share in any recovery. The act permits the United States to intervene and take over the lawsuit, as it has done in this case. If a defendant is found liable under the act, the defendant is subject to trebles damages and penalties.
The United States’ suit is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $25 billion through False Claims Act cases, with more than $16 billion of that amount recovered in cases involving fraud against federal health care programs.
The matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Southern District of Mississippi and the Department of Health and Human Services’ Office of Inspector General. The claims asserted against Ted and Julie Cain, Corporate Management and Stone County Hospital are allegations only, and there has been no determination of liability.
The case is captioned United States ex rel. Aldridge v. Cain, et al., Case No. 3:07-CV-309 HTW-LRA (S.D. Miss.).
Two Maryland residents charged with illegal gun traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury has returned an indictment charging Jarrud Michael Dixon, 26, of New Market, Maryland, and Robert Sales, 32, of Mt. Airy, Maryland, with unlawful firearms trafficking, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives revealed that Dixon and Sales conspired with a licensed firearms dealer in Pocahontas County, West Virginia to unlawfully transport firearms across state lines. The firearms dealer was prohibited from transporting firearms across state lines except for sales to certain authorized individuals. Throughout 2013 and 2014, Dixon and Sales are alleged to have repeatedly unlawfully transferred firearms from West Virginia into Maryland. The defendants falsely reported that Dixon’s girlfriend was the intended recipient of the firearms because she had a West Virginia ID card. In fact, Maryland residents Dixon and Sales were the true purchasers of the firearms.
"This investigation was partnership between ATF offices in West Virginia, Baltimore, and the Baltimore Police Department," said Stuart Lowrey, ATF Special Agent in Charge of the Louisville Field Division, which covers West Virginia and Kentucky. "Illegal gun trafficking has direct and devastating results on our communities, as is obvious from the number of firearms in this case that have already been recovered in crimes. The public entrusts Federal Firearms Licensees with significant responsibility for preventing firearms trafficking, and ATF will aggressively pursue those who breach that trust."
Dixon and Sales are each charged with one count of “Conspiracy to Illegally Traffic Firearms.” They each face up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Kilos of Pure Meth Lands Couple in Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – A couple from South Texas have been handed significant sentences following their convictions of conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Pedro Candelaria, 24, of Pharr, and Cynthia Marez, 31, of McAllen, pleaded guilty June 4, 2015, and March 5, 2015, respectively.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Candelaria to 156 months in federal prison, while Marez was ordered to serve a 84-month-term of imprisonment. Both were also ordered to serve five years of supervised release following their sentences.
In January 2015, Border Patrol (BP) agents conducted an inspection of a passenger bus that arrived at the Falfurrias checkpoint. During that inspection, they discovered several vacuum-sealed bags strapped to Marez’s body which contained approximately 2.2 kilograms of methamphetamine. The investigation also led to the arrest of Candelaria who had been Traveling with Marez. Laboratory analysis determined that the methamphetamine had a purity level of 97%.
In federal custody since their arrests, Candelaria and Marez 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 Anchorage Residents Charged in A 49-Count Indictment with Conspiracy, Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two Anchorage residents were charged in a 48-count indictment alleging that the two conspired to obtain checks from vehicle break-ins, burglaries, and mail theft, and then negotiated the stolen checks and opened bank accounts using stolen identification.
Kelci Neal, age 26, and Zachary Ensman, age 31, both of Anchorage, were charged in a 48-count indictment that includes charges of conspiracy, bank fraud, possession of stolen mail, and aggravated identity theft.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, Neal and Ensman conspired together to use stolen checks and stolen identities at banks and businesses in Anchorage from October 2014, to August 2015, to obtain over $47,000.
Ensman appeared in court today on the charges. Neal’s whereabouts are unknown. Anyone with information regarding the location of Neal please contact the U.S. Postal Inspection Service in Anchorage at 907-261-6321. See the photos at the end of this release.
The law provides for a maximum sentence of 30 years in prison and a fine of $1 million or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The United States Postal Inspection Service and the Anchorage Police Department conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Tobyhanna Man Pleads Guilty to Passing $8,500 in Counterfeit Currency in Area CasinosRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason Mitchell, age 30, Tobyhanna, Pennsylvania, pleaded guilty to conspiracy in dealing in counterfeit United States Federal Reserve Notes. The guilty plea was entered before U.S. District Judge James M. Munley in Scranton.
According to U.S. Attorney Peter Smith, Mitchell was charged in an indictment by a grand jury in November 2014. Mitchell and others conspired to receive, exchange, transfer, and pass approximately $8,500 in counterfeit $100 Federal Reserve Notes at the Mount Airy Casino in Mount Pocono and the Mohegan Sun Casino in Plains during June 2014.
The plea is subject to the approval of the court. Judge Munley scheduled sentencing for December 18, 2015.
The case was investigated by the United States Secret Service and the Pennsylvania State Police, Bureau of Gaming Enforcement. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three New Orleans Area Postal Workers Charged for Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced three separate criminal matters, charging United States Postal employees for theft of mail.
According to a four-count Indictment, on or about July 18, 2015, and again on or about July 22, 2015, ANISHA GALLIN, age 27, stole the contents of four first-class letters.
A second one-count Indictment alleges that, in or about December 2013, O’NEIL EDWARDS, age 27, stole two $100 gift cards from mail sent from Las Vegas to Belle Chasse.
Lastly, a three-count Bill of Information charges that, on or about July 9, 2014, JOSHUA GRESHAM, age 27, removed $370 in cash from three greeting cards while on his postal route.
If convicted, each defendant faces a maximum term of imprisonment of five years, followed by three years of supervised release, a maximum fine of $250,000, and restitution, as to each count.
U.S. Attorney Polite reiterated that the Indictments and Bill of Information merely contain charges and that the guilt of each defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Postal Service, Office of Inspector General for investigating this matter. Assistant U.S. Attorney G. Dall Kammer is in charge of prosecuting all three matters.
Three Defendants Arrested in Multi-County Meth DistributionRead the Press Release
BOISE - Diego Alejandro Alcantar-Armenta, 29, and Daniel Valdenegro-Zafiro, 24, of Elko, Nevada, and Jose Antonio Diaz-Juarez, 44, of Grandview, Idaho, were indicted on September 9, 2015, by a federal grand jury in Boise for one count of conspiracy to distribute methamphetamine and two counts of possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. An initial appearance was held on September 18, 2015, for all of the defendants.
The Indictment alleges that between July 24, 2015, and September 8, 2015, the defendants conspired with each other to distribute methamphetamine in the state of Idaho. On two occasions the defendants are alleged to have possessed with the intent to distribute methamphetamine in Ada County.
The penalties for the charges vary—depending on the facts for each charge—from not more than twenty years in prison, to not less than five years mandatory minimum up to forty. The maximum fine for each of the charged offenses varies from $1,000,000 to $5,000,000. The number of years of supervised release following any incarceration for the charged offenses varies from three years to four years.
A trial is set for November 16, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case is being investigated by the Drug Enforcement Administration, Ada County Sheriff’s Office, Elmore County Sheriff’s Office, Owyhee County Sheriff’s Office, and the Elko Combined Narcotic Unit of Elko, Nevada.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Charged with Defrauding West Chester Company of MillionsRead the Press Release
PHILADELPHIA – Douglas S. Rae, 58, of Bethlehem, PA, was charged today by indictment with participating in several schemes to defraud his former employer, a company based in West Chester, PA, of millions of dollars. Rae is charged with seven counts of mail fraud, 25 counts of wire fraud and conspiracy to commit wire fraud, and three counts of money laundering, announced United States Attorney Zane David Memeger.
In related matters, also charged today by information were John R. Hodde, 53, of Aubrey, TX, and Michael H. Keppler, 55, of Ridgewood, NJ. Hodde and Keppler are separately charged with two counts of wire fraud and conspiracy to commit wire fraud for their alleged participation, along with Rae, in schemes to defraud Rae’s former employer.
According to the indictment, between 2006 and 2013, Rae devised a scheme to defraud his employer by submitting invoices from two companies he controlled for goods and services that were never delivered. Rae controlled the bank accounts for the two companies, Lighting Equipment Sales and Service, Inc. (“LESS”), and Lighting Products International, Inc. (“LPI”). He caused the victim company to pay over $900,000 for bogus LESS and LPI invoices, and he took the proceeds for his own personal use.
The charging documents further allege that from 2007 through 2013, Rae and Hodde devised a scheme to defraud Rae’s employer by submitting bogus invoices from Hodde’s employer, Barbizon Capitol, Inc. (“Barbizon”). One of the ways the men allegedly carried out this scheme began with Hodde allowing Rae to use Hodde’s corporate credit card account, which Rae used to for personal expenditures such as home appliances, airline tickets for him and his wife to visit their vacation home, personal electronics, and dental services. It is further alleged that Rae and Hodde then worked together to create bogus invoices from Barbizon to Rae’s employer for purported product sales, when in fact Barbizon did not supply any of the product. Rae and Hodde created the bogus invoices in amounts to reimburse Barbizon for all of Rae’s personal expenditures on the Barbizon credit card account, plus an approximately 10% mark-up, which Barbizon kept. In this manner, Rae and Hodde allegedly caused the victim company to pay over $560,000 for bogus invoices submitted to it from Barbizon. The other way Rae and Hodde allegedly carried out their scheme involved Rae submitting bogus invoices from LESS and LPI to Barbizon, and then at Rae’s direction, Hodde allegedly generated corresponding bogus invoices from Barbizon to Rae’s employer, along with an approximate 10% mark-up for Barbizon to keep.
Neither LESS, LPI, nor Barbizon supplied any of the product for which the victim company was invoiced. In this manner, according to the charging documents, Rae and Hodde caused the victim company to pay over $200,000 for the bogus invoices. Barbizon retained approximately 10% of those proceeds, and the remainder were forwarded to LESS and LPI and deposited into bank accounts controlled by Rae.
Between 2010 and 2012, Rae and Keppler allegedly devised a scheme to defraud Rae’s employer by submitting bogus invoices from Keppler’s company, Keppler Engineers, LLC (“Keppler Engineers”). Rae directed Keppler to generate invoices from Keppler Engineers to Rae’s employer that contained particular item descriptions, descriptions of services, and specific prices, and Keppler did as directed. Rae and Keppler caused those invoices to be submitted to the victim company for payment. The victim company paid Keppler Engineers for the invoices, and then Keppler Engineers paid all but approximately 10% of the proceeds to LPI, which Rae deposited into bank accounts he controlled. Neither Keppler Engineers nor LPI provided the products or services to the victim company. According to the charging documents, Rae and Keppler caused the victim company to pay over $170,000 for the bogus invoices from Keppler Engineers.
Rae is further charged with conducting three separate financial transactions of over $10,000 each in criminally derived proceeds.
If convicted, Rae faces up to 20 years in prison on each count of mail fraud, wire fraud, and conspiracy to commit wire fraud, and up to ten years in prison on each count of money laundering. He also faces up to three years of supervised release, full restitution, a fine, a $3,500 special assessment, and criminal forfeiture. Hodde and Keppler each face up to 20 years in prison on each count of wire fraud and conspiracy to commit wire fraud, full restitution, three years of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.
Third Commercial Trash Hauler Admits to Bribing Baltimore City Landfill EmployeesRead the Press Release
Baltimore, Maryland – Larry Lowry, age 61, of Orchard Beach, Maryland, pleaded guilty today to conspiracy and bribery in connection with a scheme in which commercial haulers paid Department of Public Works (DPW) employees cash in return for allowing the haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
The DPW’s Bureau of Solid Waste is responsible for managing Baltimore City’s waste management services, including overseeing citizen drop-off centers, such as the Northwest Transfer Station (NWTS) and the Landfill. Baltimore City’s waste management system generates revenue for the City by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities. The City contracts with private salvage companies to purchase and remove scrap metal from its trash collection facilities. DPW employees at the Landfill and NWTS are required to place the recyclable scrap metal in separate bins provided by the salvage companies. The salvage companies regularly pick up the scrap metal and, based on predetermined prices per ton, the salvage companies pay the City for the value of the scrap metal.
Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with the City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located farther within the Landfill. Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.
DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system. To activate the system and record a particular transaction, DPW employees must enter the tag number of the truck and a corresponding billing code. The scale house operators reweigh each truck as it leaves the Landfill. The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.
According to his plea agreement, beginning in 1988, Lowry was in the business of collecting and hauling trash to the Landfill when he learned from a friend that he could avoid paying the disposal fee if he paid a cash bribe to the scale house operators. The friend introduced Lowry to William Nemec and others to whom Lowry paid $100 per trip in lieu of the usual dumping fee. This continued for approximately two years until Lowry stopped using the Landfill. In 2010, Lowry approached Nemec and told him that he wanted to start using the Landfill again for free. Thereafter Lowry paid a $100 cash bribe, usually to Nemec, but sometimes to others. Paying the $100 bribe for each trip he made to the Landfill saved Lowry thousands of dollars in fees each month. When Lowry first started paying the bibes he would hand the money to the scale operator through the outbound window at the scale house. Later, he usually met Nemec at an off-site location where he would pay a week’s worth of bribes or more. Lowry always paid the bribes in cash. While he was paying the bribes Lowry received phony receipts from the scale house operators at the outbound window. From July 1, 2014 to May 1, 2015 alone, Williams paid more than $20,000 in bribe payments in lieu of paying the required waste disposal fees, which totaled approximately $60,000.
As part of his plea agreement, Lowry has agreed to forfeit and pay restitution of $350,000.
Lowry faces a maximum sentence of five years in prison for the conspiracy and 10 years in prison for bribery. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Williams on January 8, 2016 at 10:00 a.m.
Former DPW employees Tamara Oliver Washington, age 55, and William Charles Nemec, Sr., age 55, both of Baltimore; and commercial haulers Mustafa Sharif, age 63, of Baltimore, and Adam Williams, Jr., age 52, of Randallstown, have pleaded guilty to their participation in the bribery scheme. Nemec and another DPW employee, Michael Theodore Bennett, age 46, also of Baltimore, have pleaded guilty to a related “junking” scheme. Washington is scheduled to be sentenced on October 20, 2015, Williams on October 21, 2015, Sharif on November 6, 2015, Nemec on November 17, 2015, and Bennett on December 21, 2015. Washington and Nemec have each agreed to the entry of an order to pay $6 million in restitution. Sharif has agreed to forfeit and pay restitution of $500,000 and Williams has agreed to forfeit and pay restitution of $900,000. As part of his plea agreement, Bennett agreed to the entry of an order to pay restitution of $526,273.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General, and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.
Tenth Defendant Pleads Guilty to Tax Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., woman has pleaded guilty in federal court to her role in a fraudulent tax return preparation scheme that claimed nearly $340,000 in fraudulent income tax refunds.
Amanda Leigh Boyd, 33, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, Sept. 17, 2015, to three counts of making false claims.
Co-defendant Cherie Christine Dupuis, 43, of Springfield, pleaded guilty on July 21, 2015, to leading the fraudulent tax return preparation conspiracy. Dupuis admitted that she and co-conspirators defrauded the government by filing false claims for income tax refunds from February 2009 to March 2012. In the false and fraudulent federal income tax returns they prepared and filed, conspirators claimed refunds from the IRS totaling approximately $340,630, of which approximately $336,839 was false. Over the course of the scheme, the total actual tax loss to the IRS was $284,169.
Dupuis admitted that she filed fraudulent federal income tax returns in her own name and for at least 19 other individuals. Dupuis would usually split the fraudulent refunds with her co-conspirators. The total amount of the false claims Dupuis personally prepared and/or filed was approximately $298,708, with approximately $256,281 being paid on these false claims and a loss to the government of approximately $213,711.
Boyd admitted that she aided and abetted Dupuis, and was aided and abetted by Dupuis, in the filing of false federal income tax returns with the IRS for the 2009, 2010 and 2011 tax years. Boyd claimed tax refunds to which she knew she was not entitled. Boyd provided her personal information to Dupuis, which Dupuis then used to file false income tax returns that falsely listed wages that had not been earned and federal income tax withholdings that had not been withheld. As a result, Boyd fraudulently received a total of $29,409 in fraudulent income tax refunds and she paid approximately half of that amount to Dupuis.
Boyd is the 10th defendant to plead guilty to her role in the scheme. In addition to Dupuis, co-defendants Johnny L. Cooper, 28, and Jeannie Marie Rhodes, 34, both of Springfield; Heather Nicole Drennen, 32, of Cameron, Mo., formerly of Springfield; Shawna Marie Hughey, 37, of Joplin, Mo., formerly of Springfield; William J. Coonce, 29, of Otterville, Mo.; Jeannette R. Dunn, 48, of Huntsville, Ark., formerly of Springfield; Asia Michelle Couchman, 26, of Oak Grove, Mo.; and Delbert L. Allen, 37, of Pleasant Hope, Mo., formerly of Springfield, have also pleaded guilty.
Under federal statutes, Boyd is subject to a sentence of up to 15 years in federal prison without parole, plus a fine up to $750,000 and an order of restitution. 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 Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Tax Return Preparer Pled Guilty to Filing a False Claim with the IRSRead the Press Release
A tax return preparer pled guilty to filing a false claim with the Internal Revenue Service (IRS).
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Joseph Akins Owanikin, a/k/a Joe Akins, of Fort Lauderdale, pled guilty to one count of filing a false claim with the Internal Revenue Service, in violation of Title 18, United States Code, Section 287. At sentencing, the defendant faces a maximum statutory sentence of five years in prison.
According to court documents, Owanikin was a professional tax return preparer and operated Akins Financial Inc., a/k/a Akins Financial Services, in Miami-Dade County. The defendant obtained an Electronic Filing Identification Number (EFIN) so that he could submit tax returns electronically to the IRS in the names of other individuals. Owanikin knowingly filed a false and fraudulent claim, that is, a false 2008 individual United States income tax return and supporting documents, including IRS Form 5405 for the First-Time Homebuyer Credit, fraudulently claiming a tax refund of $7,500.
Owanikin is scheduled to be sentenced on December 1, 2015 at 10:30 a.m. before Judge William J. Zloch.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Tampa Restaurant Owner Sentenced for Receiving Stolen PropertyRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Charvester Anthony to four years and three months in federal prison for receiving stolen government property. As part of his sentence, the Court entered a money judgment in the amount of $31,000, the proceeds of the charged criminal conduct. A federal jury found him guilty on June 18, 2015.
According to court documents, Anthony, who owned and operated several restaurants in Tampa, received and cashed more than 30 federal income tax return checks, knowing that they had been obtained by fraud. The checks totaled more than $250,000.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Bob Mosakowski.
St. Petersburg Man Sentenced for Attempting to Entice Children Online and for Sending Obscene MaterialRead the Press Release
Tampa, FL – U.S. District Judge Charlene Edwards Honeywell today sentenced Sandi S. McGann (30, St. Petersburg) to 10 years in federal prison for attempting to entice and coerce minors to engage in illegal sexual activity, and for transferring obscene matter to individuals that he believed were under the age of 16.
According to court documents, between December 10, 2014, and February 12, 2015, McGann communicated online and attempted to persuade a 14-year-old “child” to engage in illegal sexual activity with him. The “child” actually was an undercover agent from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations posing as a ninth grade girl living in Clearwater. Further investigation revealed that McGann had also engaged in sexually explicit online chats with another Homeland Security agent posing as a child online. He also communicated online with a 14-year “child” living in California named “Amanda.” “Amanda” was actually the founder of the “Demand Project,” a nonprofit organization in Oklahoma designed to help law enforcement identify individuals who pose a risk to children. During the various online chat sessions with individuals McGann believed were under the age of 16, McGann repeatedly masturbated while on his webcam.
“Predators who target innocent children for their own criminal gratification are warned that law enforcement will not rest until they are brought to justice,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI, along with our federal, state, and local partners, will continue identifying and arresting those who would even attempt to victimize the young and defenseless in such a deplorable way.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
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 (CEOS), 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.justice.gov/psc.
Sixteen Sentenced for Importing Cocaine from Jamaica and Distribution Throughout Eastern North CarolinaRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announces that fifteen individuals were sentenced for their involvement in an international cocaine trafficking organization. All 16 were part of the same drug trafficking organization operating in the Elizabethtown and Bladen County area. The organization was importing the cocaine from Jamaica for distribution.
The following individuals were indicted on February 11, 2014. Count 1 charged conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine from September 2008 to February 11, 2014. Count 2 charged conspiracy to import 5 kilograms or more of cocaine into the United States from September 2008 to February 11, 2014 and Count 3 charged distribution of a quantity of cocaine on April 24, 2013. All pleaded guilty and were sentenced to the following. The count of the indictment they pleaded to is annotated as well.
- Shawn Melvin, a/k/a “Gutta” 41, of Elizabethtown, NC – Count 1, 190 months & 5 years supervised release
- Veronica Kemp, 43, of Elizabethtown, NC – Count 1, 120 months & 5 years supervised release
- Alicia McCoy, 25, of Lumberton, NC – Count 1, 24 months & 2 years supervised release
- Jonathan Shipman, 35, of Elizabethtown, NC – Count 3, 108 months & 3 years supervised release
The following individuals were indicted on May 27, 2014. Count 1 charged each with conspiracy to distribute cocaine from January 2004 to May 27, 2014. Count 2 charged each with conspiracy to import cocaine from January 2004 to May 27, 2014. Each was later sentenced to the following terms of incarceration:
- Clayton Leslie, a/k/a “Tyrone Gordon” and “Jamaica”, 37, of Elizabethtown, NC – Count 1, 120 months & 5 years supervised release
- Don Smith, 32, of Elizabethtown, NC – Count 1, 22 months & 2 years supervised release
- Felicia Smith, 39, of Clarkton, NC – Count 1, 18 months & 3 years supervised release
- Terri Smith, a/k/a “Bit Bit”, 31, of Clarkton, NC – Count 1, 5 months & 3 years supervised release
- Levi McGowan, 44, of Columbus, OH – Case transferred to Southern District of Ohio, where the defendant received a sentence of 27 months & 3 years supervised release
- Turkesa Lesane, 35, of Elizabethtown, NC – Count 1, 4 months & 3 years supervised release
- Lawrence Roberson, 49, of Fayetteville, NC – Count 1, 30 months & 4 years supervised release
- Grant McCoy, 31, of Clarkton, NC – Count 1, 30 months & 5 years supervised release
- Kevisha Brown, 25, of , NC – Count 1, 32 months & 3 years supervised release
- Antonio Williams, 45, of Poughkeepsie, NY – Count 1, 141 months & 5 years supervised release
- Michael Ellison, 45, of Bronx, NY – Count 1, 56 months & 4 years supervised release
The following individual pleaded guilty to use of a communication facility in committing or in causing or facilitating a drug trafficking offense; aiding and abetting:
- David McLaughlin, 43, of Orlando, FL – 96 months & 1 year supervised release
In 2011, the United States Department of Homeland Security established the existence of a drug trafficking organization that smuggled cocaine into the United States from several Caribbean islands, including Jamaica, Curacao, and Trinidad. The organization, based in Bladen County, North Carolina, was formed in 2004 by Tyrone Gordon, Shawn Melvin, and Melvin’s wife, Veronica Kemp.
The organization was primarily supplied cocaine by unindicted Jamaican nationals and they recruited Alicia McCoy, Don Smith, Felicia Smith, Terri Smith, Levi McGowan, Turkesa Lesane, David McLaughlin, Lawrence Roberson, Grant McKoy, Kevisha Brown, Antonio Williams, and Michael Ellison to travel to the Caribbean islands to ingest or conceal pelletized cocaine in their body cavities or undergarments. The couriers smuggled the cocaine into the United States via several airports, including those in Charlotte, North Carolina; Miami, Florida; New York, New York; Atlanta, Georgia; Chicago, Illinois; Fort Lauderdale, Florida; and Memphis, Tennessee. These couriers made a total of 52 international flights for the organization. When the couriers returned to the United States, they regurgitated or passed the cocaine pellets and gave them to Melvin, Kemp, and/or Gordon for distribution. On occasion, some of the couriers were utilized to wire money overseas to individuals for cocaine purchases prior to the couriers’ travels. Melvin provided some of the cocaine to Jonathan Shipman, a drug dealer and high-level member of the United Blood Nation street gang in Bladen County. Investigation ultimately revealed that the organization illegally imported more than 11.5 kilograms of cocaine into the United States between 2004 and 2014.
The case was investigated by The Department of Homeland Security-Homeland Security Investigations, Office of the Resident Agent in Charge, Charlotte, NC; US Customs and Border Protection, Bladen County Sheriff’s Office, North Carolina Department of Public Safety-Division of Alcohol Law Enforcement, North Carolina Highway Patrol, North Carolina Department of Motor Vehicles-License and Theft Bureau, Maryland State Police, Elizabethtown Police Department, and the NC State Bureau of Investigation. Assistant U.S. Attorney Jennifer Wells prosecuted the case for the government.
Scottsdale Man Found Guilty of Premeditated Murder of Tribal Police OfficerRead the Press Release
PHOENIX – Earlier this week, Elijah Loren Arthur, Sr., 34, of Scottsdale, Ariz., was found guilty by a federal jury of first-degree murder and using a firearm in a crime of violence resulting in death. The case was tried before U.S. District Judge Steven P. Logan from Sept. 1-16, 2015. The defendant is being held after trial. Sentencing is set before Judge Logan on Nov. 30, 2015.
“The verdict in this case represents the culmination of an intensive investigation following the tragedy that took Officer Cabrera away from his family and his Salt River Police Department colleagues,” said U.S. Attorney John S. Leonardo. “Our office is determined to prosecute to the fullest extent of the law those who threaten, menace, or harm tribal law enforcement officers.”
“While the outcome of these proceedings does not change the fact a police officer was killed while performing his official duties, it will hopefully bring closure to the family and friends of Officer Jair Cabrera. The FBI remains committed to bringing justice to those responsible for senseless crimes such as these,” stated FBI Acting Special Agent in Charge Michael V. Caputo.
“Now that the verdict is in and the case has run its course through the criminal justice system, my department can begin to start the healing process. The verdict will never bring back our beloved fallen comrade but at least we know that the suspect in this case will not be able to do any harm to anyone else. On behalf of the men and women of the Salt River Police Department, and the supportive members of the Salt River Pima-Maricopa Police Department, we thank the Community for their continual support throughout this process and we especially thank the men and women of the U.S. Attorney’s Office, the FBI, and all of the surrounding agencies that assisted the SRPD with the prosecution of this case. Please keep the parents and significant others of Officer Jair Cabrera in your prayers.” stated Chief Patrick R. Melvin.
The evidence at trial showed that on May 24, 2014, Arthur used an AR-15 to shoot and kill Salt River Police Officer Jair Cabrera following a traffic stop on the Salt River Pima-Maricopa Indian Reservation. The evidence at trial also showed that Arthur’s affiliation with the East Side Bloods gang may have been a motivating factor for the killing. The driver of the vehicle that was stopped, Joey Michael Thomas, 22, of Scottsdale, Ariz., previously pled guilty to second degree murder and is scheduled to be sentenced on Nov. 6, 2015.
A conviction for first degree murder carries a mandatory penalty of life imprisonment, and a conviction for using a firearm in a crime of violence resulting in death carries a consecutive punishment of 10 years to life imprisonment, a $250,000 fine, or both.
The investigation in this case was conducted by Federal Bureau of Investigation and the Salt River Pima-Maricopa Police Department. The prosecution was handled by Tracy Van Buskirk and Thomas Simon, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-14-848-PHX-SPL
RELEASE NUMBER: 2015-082_ Arthur
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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.
Ross County Business Owner Sentenced in Employment Tax Fruad CaseRead the Press Release
COLUMBUS, OHIO – Andrew J. Parish, 40, of Chillicothe, Ohio was sentenced to 18 months in prison, three years of supervised release, and was ordered to pay $341,336.46 in restitution to the Internal Revenue Service (IRS) for failing to account for and pay over employment taxes to the IRS. Parish previously pleaded guilty to the aforementioned charge on May 5, 2015.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, between January 2009 and March 2009, Parish defrauded the IRS by failing to account for and pay over employment taxes. Parish was the owner and operator of Axiom Consulting Group, LLC (“Axiom”) and was responsible for collecting, truthfully accounting for, and paying over the employment taxes to the IRS from the employees of Axiom. Parish retained the services of an accounting firm that employed Certified Professional Accountants. One of the accounting firm’s responsibilities was to process the payroll for Axiom based on figures provided to them by Parish. The accounting firm was also retained to prepare Forms 941, Employer’s Quarterly Federal Tax Returns.
Parish did not follow the established payroll procedures and instead paid a majority of Axiom’s payroll by issuing the payroll checks himself to the Axiom employees. These payroll checks did contain withholding amounts for the required employment taxes owed. However, the amount of employment taxes that Parish withheld from his employees were never remitted to the IRS. In addition, Parish never provided the true amount of the wages paid to the employees to the accounting firm, causing the preparation of an inaccurate Form 941 for the period January 1, 2009 through March 31, 2009. In addition, it was Parish’s responsibility to transmit the Forms 941 to IRS, but he failed to do so.
The total tax loss to the IRS as a result of the non-payment of employment taxes was $341,336.46.
"IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the loss of future social security or Medicare benefits for the employees," stated Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office.
This case was prosecuted by Assistant United States Attorney Jessica H. Kim and was investigated by special agents of IRS-Criminal Investigation.
Retired Railroad Worker Sentenced for Disability FraudRead the Press Release
David E. Hunnicutt, age 58, of Macon, Georgia was sentenced September 16, 2015 by the Honorable Marc T. Treadwell, United States District Judge, in Macon, Georgia. Mr. Hunnicutt was sentenced to 12 months and a day imprisonment, he was ordered to pay $273,060.52 in restitution to the Railroad Retirement Board (RRB), and he was ordered to serve one (1) year on supervised release following imprisonment. On April 2, 2015, Hunnicutt pled guilty to an indictment which charged him with the offense of “False Statement,” a violation of 18 U.S.C. § 1001(a)(3). The maximum penalties for violation of this law are five (5) years imprisonment, a $250,000 fine, three (3) years supervised release, and a $100 mandatory assessment fee.
The RRB takes the place of Social Security for railroad workers and their families. Mr. Hunnicutt was employed as a brakeman for Norfolk Southern Corporation railroad from September 1979 through December 2001. On August 8, 2002, he filed for disability with the RRB. He reported no self-employment to the RRB on his application. At the time of his application, Hunnicutt was informed that he had a responsibility to report earnings and employment to the RRB, and he was informed that it is a crime to make a false statement to the RRB in order to receive disability benefits. Mr. Hunnicutt was granted disability and received payments from the RRB beginning September 2002 through 2013.
An investigation by the RRB Office of Inspector General established that Hunnicutt was the incorporator of Mid-Georgia Tractor Service, Inc. (MGTS) in 1997. MGTS was a domestic profit corporation, the business of which was landscape design, lawn maintenance, and irrigation. In addition to being the incorporator of this business, evidence showed that from 1997 through 2013 Hunnicutt was an active participant in the business, that he listed himself as owner of the business on a company internet website, that he was an officer and agent of the business, and that he wrote checks on the business account and received income from the business. On January 16, 2012, Hunnicutt filed a “Continuing Disability Report” with the RRB in which he falsely stated to the Board that he had no self-employment from June 1, 2002 through January 16, 2012.
“Disability payments are a great benefit for those who need them, often meaning the difference between making ends meet and facing personal financial ruin,” United States Attorney Michael Moore said. “The system is geared to help those who need it, not serve as a means of additional income for those who are not truly disabled. Mr. Hunnicutt failed to be honest about his situation. These types of claims put the disability compensation program in jeopardy by draining funds meant to help those who need it. In the Middle District of Georgia we will continue to use our resources to investigate and prosecute fraud with the hopes that these programs continue to be available for those who lawfully seek assistance.”
The case was investigated by the Railroad Retirement Board, Office of the Inspector General. Assistant United States Attorney Paul McCommon prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Project Safe Neighborhoods Grant Awarded to Milwaukee Police Department to Support the Milwaukee Homicide Review CommissionRead the Press Release
The United States Attorney’s Office announced today that the Milwaukee Police Department has been awarded a Project Safe Neighborhoods (PSN) Program grant of $294,668 to support the Milwaukee Homicide Review Commission (MHRC) efforts to reduce gun violence in the City of Milwaukee.
The PSN program, led by the United States Attorney, is a collaborative effort between federal, state, and local law enforcement and other community members to implement gang violence and gun crime enforcement, intervention and prevention initiatives within the Eastern District of Wisconsin. As key component of the Milwaukee PSN effort, the MHRC regularly brings together police, prosecutors, corrections, probation and parole, ATF, FBI and community service providers to review homicides and non-fatal shootings to better understand the problem of gun violence in the City of Milwaukee and seek solutions based on proven prevention and enforcement efforts developed around the country. The MHRC’s research-based, anti-violence program is being replicated in other major US cities.
The grant announced today will be used to enhance the MHRC work with law enforcement and corrections to focus on those individuals repeatedly involved as victims, witnesses, or suspects in shootings and associated violent crimes. The grant will be used to support research and intelligence efforts to identify the individuals and groups frequently involved in shootings, armed robberies, car-jackings and other violent crimes and coordinate the targeting of these individuals and their criminally involved associates for investigation and prosecution by joint federal, state, and local task forces.
In announcing the grant award today, Acting United States Attorney Greg Haanstad said, “The Milwaukee Police Department and the Milwaukee Homicide Review Commission are essential partners in the United States Department of Justice’s efforts to combat gun crime in Milwaukee. The US Attorney’s Office and our federal law enforcement partners look forward to working even more closely with our state and local partners on this focused effort to target those most prone to gun violence in Milwaukee.”
“When the Milwaukee Police Department and I commenced the Homicide Review process a decade ago, we envisioned effective partnerships with federal, state and local agencies as anticipated under this Project Safe Neighborhood grant,” said Mayor Tom Barrett. “I am confident that our system-wide partners will join us as we redouble our efforts and continually refine our focus to reduce gun violence and apprehend those who choose to victimize their neighborhoods with guns.”
MHRC is led by Mallory O’Brien, an epidemiologist with the Medical College of Wisconsin who is working out of the City of Milwaukee Health Department. Research support under the new grant will be provided by researchers from Indiana University and the University of Missouri who have been working as PSN research partners for many years.
Philadelphia Man Charged with Crimes Arising Out of Pharmacy RobberiesRead the Press Release
Philadelphia - Michael Katzin, was charged today by superseding indictment with one count of conspiracy to commit pharmacy burglary, one count of conspiracy to possess with the intent to distribute controlled substances, one count of pharmacy burglary, and one count of possession with the intent to distribute controlled substances, announced United States Attorney Zane David Memeger. The superseding indictment charges that the defendant conspired and agreed with Harry Katzin and Mark Katzin, both charged elsewhere, and others known and unknown to the grand jury, to enter Rite Aid pharmacies, including the Rite Aid pharmacy located at 1852 Brownsville Rd, Feasterville-Trevose, Pennsylvania on November 18, 2010, and the Rite Aid pharmacy located at 807 S. 4th Street, Hamburg, Pennsylvania on December 16, 2010, with intent to steal materials and compounds containing any quantity of a controlled substance, including amphetamine salts, dextroamphetamine, fentanyl, methylphenidate, dexmethylphenidate, morphine sulfate, meperidine, oxymorphone, tapentadol, codeine sulfate, hydromorphone, hydrocodone, hydrocodone APAP, hydrocodone chlorpheniram, oxycodone, and oxycodone APAP, each a Schedule II controlled substance; and whose replacement value was not less than $500, and to knowingly and intentionally possess these controlled substances with the intent to distribute them.
The superseding indictment further charges that the defendant burglarized the Rite Aid Pharmacy at 807 South 4th Street, Hamburg, Pennsylvania on December 16, 2010, with intent to steal materials and compounds containing any quantity of a controlled substance, including to Schedule II and other controlled substances, including amphetamine salts, dextroamphetamine, fentanyl, methylphenidate, dexmethylphenidate, morphine sulfate, meperidine, oxymorphone, tapentadol, codeine sulfate, hydromorphone, hydrocodone, hydrocodone APAP, hydrocodone chlorpheniram, oxycodone, and oxycodone APAP; all Schedule II controlled substances; and whose replacement value was not less than $500, and
If convicted, the defendant faces a maximum sentence of 70 years imprisonment, a $2,500,000 fine, 3 years supervised release up to lifetime supervised release, and a $400 special assessment. The case was investigated by agents from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the Southampton Township Police Department, and the Hamburg Borough Police Department, and has been assigned to Assistant United States Attorney Thomas M. Zaleski.
Palm Coast Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Gioacchino Campo (57, Palm Coast) has pleaded guilty to receiving child pornography over the Internet. He faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison. A sentencing date has not yet been set.
According to court documents, an FBI agent in Jacksonville began an undercover investigation to identify individuals that were accessing or trading images or videos depicting child pornography over the Internet. The agent identified a computer that was hosting images using a file sharing program, and the agent was able to download several files depicting child pornography from that computer. The computer was traced to Campo’s residence.
On March 11, 2014, agents and officers executed a federal search warrant at Campo’s residence and seized computers and other electronic media. During an interview, Campo stated that he had been downloading child pornography, and first became involved with it about five years ago. Forensic analyses of Campo’s computer revealed that it contained at least 50 videos depicting the sexual abuse of children.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and Daytona Beach. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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 (CEOS), 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.justice.gov/psc.
PCP Trafficker Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Fitzgerald Stoney, Jr., age 42, of Glenarden, Maryland today to 12 years in prison followed by five years of supervised release for conspiring to possess with the intent to distribute one kilogram or more of phencyclidine (PCP) and two counts of possession with intent to distribute PCP.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Gary Gardner of the Howard County Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, detectives investigating the distribution of PCP in Howard County intercepted phone calls and text messages in 2013 which identified Stoney as trafficking in PCP. On November 7, 2013 law enforcement executed a search warrant at the home of a co-conspirator and seized 53 grams of PCP attributable to Stoney.
On December 1, 2013, Baltimore County Police arrested Stoney and seized 19 grams of PCP from him, which were intended for resale. On December 5th, Howard County Police arrested Stoney and one of his co-defendants, Soboyejo Sofidiya, and seized 178 grams of PCP from them which were intended for resale. Stoney and Sofidiya had been travelling back to Baltimore from New York where they had purchased PCP for resale.
On December 19, 2013, law enforcement executed a search warrant at the home of another co-conspirator and seized 315 grams of PCP attributable to Stoney.
To date, Soboyejo Sofidiya, age 33, of Laurel, Maryland and three other co-defendants have pleaded guilty to their participation in the drug conspiracy, and were sentenced to a period ranging from time served to 60 months.
United States Attorney Rod J. Rosenstein praised ATF and the Howard County and Baltimore County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise and Christopher Romano, who prosecuted the case.
Ohio Man Pleads Guilty to Defrauding Bradenton Medical PracticeRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that David Brooks (44, Ohio) has pleaded guilty to mail fraud. He faces a maximum penalty of 20 years in federal prison.
According to the plea agreement, in October 2011, Brooks was hired as the Financial Accounting Manager at Coastal Orthopedics and Sports Medicine of Southwest Florida (Coastal), located in Bradenton. While working for Coastal, Brooks was convicted of theft, money laundering, and other fraud-related offenses in Ohio. In June 2013, after discovering this information, Coastal fired Brooks and commenced a review of its books and records.
Between January 2012 and June 19, 2013, Coastal found that Brooks had used company accounts to purchase more than $700,000 in American Express gift cards that he then used for personal expenses, including legal fees associated with his Ohio criminal case. He also had diverted payroll funds to himself above his normal salary. Brooks had altered the company’s books and records to cover up his actions.
In one instance, Brooks used ten different gift cards, paid for with Coastal’s funds, to purchase a 2012 Jeep Liberty. The gift cards were shipped to Brooks at Coastal on March 15, 2012, and four days later he used them to purchase the vehicle.
In total, Brooks used $702,091.60 of Coastal’s funds to purchase the gift cards for his own use. Together with the funds he diverted to pay himself over and above his salary, he defrauded the company out of approximately $858,883.
This case was investigated by the United States Secret Service and the Bradenton Police Department. It is being prosecuted by Assistant United States Attorney Mandy Riedel.