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Friday 17 July 2015
Severn Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Albert A. Firlie, age 67, of Severn, Maryland, pleaded guilty today to possession of child pornography. Firlie faces an enhanced sentence due to a 1991 child abuse conviction in Howard County, Maryland, involving the sexual abuse of a prepubescent minor female.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Anne Arundel County Police Chief Tim Altomare.
According to Firlie’s plea agreement, beginning no later than October 2003, Firlie used the internet to locate and obtain child pornography. In November 2007 and April 2009, Firlie created email accounts with Hotmail and Verizon, respectively, with a username that combined his first name with the first name of the victim in his child sex abuse case. A search of Firlie’s computers and email accounts reveal that Firlie was using internet search services in an attempt to locate the victim and her family as recently as late June 2014.
Between December 12, 2008 and December 26, 2014, Firlie uploaded approximately 120 videos depicting minors engaged in sexually explicit conduct to his account associated with both email addresses, utilizing a website that provided users with remote, “cloud,” storage for media files. On September 13, 2014, Firlie attempted to upload 51 videos depicting minors engaged in sexually explicit conduct to a Google “gmail” address, using a different website that also provided users with remote, “cloud,” storage for media files. That website detected the use of its cloud services for the storage of child pornography and reported the matter to the National Center for Missing and Exploited Children, who in turn reported the matter to the U.S. Postal Inspection Service.
On February 3, 2015, a federal search warrant was executed at Firlie’s residence. During execution of the warrant, investigators recovered a large number of computers and other digital storage media. Forensic examination of the seized media showed that Firlie was in possession of more than 600 images, including over 120 videos, depicting minors engaged in sexually explicit conduct. The images included prepubescent minors and sadistic or masochistic conduct.
As part of his plea agreement, Firlie must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Firlie faces a minimum sentence of 10 years in prison and a maximum of 20 years in prison, followed by up to lifetime of supervised release, for possession of child pornography. U.S. District Judge James K. Bredar has scheduled sentencing for October 19, 2015 at 2:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service, HSI-Baltimore, Maryland State Police and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who is prosecuting the case.
Savannah Pastor Sentenced to Nearly 10 Years for Role in Stolen Identity and Tax Fraud SchemeRead the Press Release
SAVANNAH, GA: XAVIER FRANKLIN LEWIS, the former Pastor of the Holy Ghost Praise and Deliverance Ministries outside of Savannah, Georgia was sentenced last week to 119 months’ imprisonment for his role as the check casher in a stolen identity tax fraud scheme. Late last year, a jury found LEWIS guilty of 22 counts, including submitting false claims to the IRS, theft of public money, aggravated identity theft, operation of an unlicensed money transmitting business, and bank fraud.
According to the evidence presented during the trial and the sentencing hearing, LEWIS used a number of separate bank accounts he controlled, including three accounts opened in the name of his church, to negotiate over 90 government-funded tax refund checks. LEWIS obtained the checks after they were either generated as the result of submitting a fraudulent income tax return with the IRS or were generated at the legitimate request of a taxpayer but stolen from the mail before it reached its final destination. In total, LEWIS fraudulently negotiated nearly $250,000 worth of government-funded checks.
United States Attorney Edward J. Tarver said, “This defendant acted as a wolf in sheep’s clothing using his church to conduct an illegal check cashing operation as part of a stolen identity and tax fraud scheme. Now, he’ll spend almost ten years in federal prison. This case should serve as notice to those who would abuse the trust of the American people to enrich themselves – if you attempt to rip off the taxpayers of this great country, you should expect to spend time in prison.”
“We would like this verdict and sentence to serve as a strong message that there are consequences for stealing and using other individuals’ personal identifying information,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “Individuals who devise schemes to steal public money face federal prosecution and federal prison.”
IRS Special Agent Stephanie Huebner and United States Secret Service Agent Matthew Britsch conducted the investigation which led to the indictment. IRS Special Agents Jason Dulin and Andres Hernandez assisted with the trial. Assistant United States Attorneys C. Troy Clark and Charles B. Wydysh prosecuted this case on behalf of the United States. Any additional questions should be directed to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Santa Fe Man Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – George B. Lamonda, 44, of Santa Fe, N.M., was sentenced today to 63 months in federal prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Lamonda and co-defendant Jared Ray Behrends, 33 of Albuquerque, N.M., were arrested on a criminal complaint in Feb. 2014. A third defendant, Jason Parris, 35, of Rio Rancho, N.M., was arrested in Mar. 2014. According to court filings, on Feb. 12, 2014, the New Mexico State Police found approximately 502.7 grams of methamphetamine concealed within a Tupperware container that was in a bag of dog food when they searched Lamonda’s vehicle during a routine traffic stop.
The three defendants were indicted in Mar. 2014, in an eight-count indictment charging Lamonda, Behrends and Parris with conspiring to distribute methamphetamine, Count 2 charges Lamonda and Behrends with possession of methamphetamine with intent to distribute, Counts 3 and 4 charge Parris with using a telephone to facilitate a drug trafficking crime, and Counts 5 through 8 charge Parris with distributing methamphetamine. The indictment alleged that the defendants committed these offenses between Oct. 2013 and Jan. 2014, in Bernalillo County, N.M.
Lamonda pled guilty on March 20, 2015, to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Lamonda admitted that on Feb. 11, 2014, he travelled with Behrends to Phoenix, Ariz., to purchase methamphetamine knowing that the drugs would be distributed in Albuquerque. He further admitted that they hid the drugs in a bag of dog food before returning to Albuquerque, where they were stopped by law enforcement and found to be in possession of approximately 442.9 grams of methamphetamine.
Behrends pled guilty on Sept. 9, 2014, to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Behrends admitted that on Feb. 11, 2014, he travelled with Lamonda to Phoenix, Ariz., to purchase methamphetamine knowing that drugs would be distributed in Albuquerque. He further admitted that they hid the drugs in a bag of dog food before returning to Albuquerque. Behrends also acknowledged making a similar trip to Phoenix with Lamonda and that he received $500.00 when they returned to Albuquerque. Behrends was sentenced on March 6, 2015, to 60 months in prison followed by three years of supervised release.
Parris pled guilty on Sept. 11, 2014, to Count 8 of the indictment charging him with distribution of methamphetamine. He admitted that on Jan. 27, 2014, he sold 27.9 grams of methamphetamine to an undercover law enforcement officer. Parris was sentenced on Feb. 18, 2015, to 51 months in federal prison followed by three years of supervised release.
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police. Assistant U.S. Attorneys Jennifer M. Rozzoni and Stephen R. Kotz prosecuted the case.
Riverview Woman Sentenced to Three Years for Stolen Identity Refund Fraud and Making False Statements to HUDRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Honeywell has sentenced Ronika Paris to three years in federal prison for wire fraud, aggravated identity fraud, and making false and fraudulent statements to the U.S. Department of Housing and Urban Development (HUD). The Court also entered a money judgment against her in the amount of $17,979, the proceeds of the fraudulent tax refunds, and ordered her to pay $70,873 in restitution to the Internal Revenue Service.
Paris pleaded guilty on April 14, 2015.
According to court documents, Paris obtained and used the stolen personal identifying information of more than 60 individuals to file false tax returns and open pre-paid debit cards. From May 2013 through September 2013, Paris filed false tax returns claiming approximately $446,554 in refunds. Many of the victims were elderly and lived out of state. In February 2013, Paris made false and fraudulent statements to HUD and the Tampa Housing Authority on her subsidized housing disclosure forms.
This case was investigated by the Hillsborough County Sheriff’s Office, the Internal Revenue Service – Criminal Investigation, the U.S. Department of Housing and Urban Development, and the Tampa Housing Authority. It was prosecuted by Assistant United States Attorney Megan Kistler and former Assistant United States Attorney Matthew Mueller.
Prior Sex Offender from Albuquerque Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Michael Lippke, 71, of Albuquerque, N.M., made his initial appearance in federal court on a nine-count indictment charging him with child pornography charges. Lippke remains in custody pending a detention hearing, which is scheduled for July 20, 2015.
Lippke was arrested yesterday on an indictment that charges him with two counts of distribution of visual depictions of minors engaged in sexually explicit conduct and seven counts of possession of visual depictions of minors engaged in sexually explicit conduct. The indictment alleges that Lippke distributed child pornography on July 20, 2014 and July 22, 2014. It also alleges that Lippke possessed child pornography between Sept. 16, 2014 and Dec. 10, 2014 on various computers and computer-related media. Lippke is alleged to have committed the nine offenses in Bernalillo County, N.M.
If convicted on a distribution charge, Lippke faces a statutory mandatory minimum of 15 years and a maximum of 40 years in prison. If convicted on a possession charge, Lippke faces a statutory mandatory minimum of ten years to a maximum of 20 years in prison. Lippke also would be required to register as a sex offender. Lippke faces an enhanced sentence because he previously was convicted on a child pornography charge.
Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the Homeland Security Investigations and the New Mexico Office of the Attorney General, with assistance from the 2nd Judicial District Attorney’s Office. All three entities are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
The case is being prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement. This case was investigated by the ATF office in Albuquerque and APD.
The case also is brought as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Palm Beach County Residents Sentenced for Sex Trafficking of MinorsRead the Press Release
Two Palm Beach County residents received 27 and 15 year prison sentences following their jury trial convictions for sex trafficking of minors.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Dontavious M. Blake, 33, and Tara Jo Moore, 27, both of Palm Beach County, were sentenced to 324 months and 180 months’ imprisonment, respectively, by United States District Judge Kenneth A. Marra following their conviction on charges of sex trafficking of children, in violation of Title 18, United States Code, Sections 1591 and 594.
According to court records and trial testimony, this case stemmed from an investigation into the production of child pornography. During the investigation, a juvenile victim revealed that she had engaged in prostitution, at the age of 15, beginning in August of 2011 and continuing until December 2011. She had approximately 10 – 15 regular clients and worked in hotels in the Palm Beach County area. After further investigation, a second juvenile victim was identified and revealed that she had also engaged in prostitution, at the age of 16, beginning in July 2011 and continuing through October 2012. They worked for a pimp who they identified as Blake and his girlfriend Moore. Blake would post online escort advertisements with photographs of the minors on Backpage.com, which postings included a telephone number that belonged to him. Moore would answer the calls from the clients and negotiate a price for prostitution services and schedule a “date.” Once the negotiated price had been agreed upon, Blake would contact the minors and drive them to the hotel or location for the “date.” At the conclusion of the date, the minor would pay a portion of the proceeds to Blake including payment for a portion of the hotel room.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Lothrop Morris.
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
Pagans Motorcycle Club Members Convicted of Firearms ChargesRead the Press Release
Two members of the Pagans Motorcycle Club were convicted of firearms offenses at trial.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Special Agent in Charge George L. Piro, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo J. Barrera, Special Agent in Charge Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office, and Michelle Morris, Chief, Sebastian Police Department, made the announcement.
Richard Todd Badali, 52, of Castelberry, and Thomas Richard Laakmann, 60, of Orange City, were convicted of all charges following a jury trial in Fort Pierce, Florida, before Senior U.S. District Court Judge Donald L. Graham. Badali was convicted of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g) and sale of a firearm to a known convicted felon, in violation of Title 18, United States Code, Section 922(d). Laakmann was convicted of possession of a firearm, after having been convicted of a misdemeanor crime of domestic violence, in violation of Title 18, United States Code, Section 922(g)(9) and sale of a firearm to a known convicted felon, in violation of Title 18, United States Code, Section 922(d).
Badali and Laakmann will both be sentenced by Senior Judge Graham in Miami, Florida on a date not yet scheduled in September 2015. At sentencing, the defendants each face a maximum sentence of 20 years’ imprisonment.
According to court records and trial testimony, between August 9, 2011 and September 3, 2011, Badali agreed to sell a 9mm pistol to another Pagans Motorcycle Club member who was cooperating with the FBI. The cooperating source secretly recorded conversations with Badali and Laakmann regarding the sale of the firearm. Laakmann delivered the firearm to the cooperating source on September 3, 2011, at the Pagans’ clubhouse in Sebastian, Florida.
These charges were the result of a multi-year federal, state and local law enforcement task force operation targeting the Pagan’s Motorcycle Club. The operation resulted in the conviction of nine individuals for violations of federal firearms and narcotics laws.
U.S. Attorney Ferrer stated, “[T]his verdict reflects the commitment of this Office and our federal, state and local law enforcement partners in combatting the illegal trafficking in firearms.”
“This operation exemplifies the cooperation among federal, state and local agencies to target dangerous individuals who through illegal gun sales may threaten the safety of our communities,” stated St. Lucie County Sheriff Mascara.
Mr. Ferrer commended the investigative efforts of the FBI, ATF, St. Lucie County Sheriff’s Office Special Investigations Unit, Martin County Sheriff’s Office and Sebastian Police Department in Indian River County. The case was prosecuted by Assistant U.S. Attorney Russell R. Killinger and Special Assistant U.S. Attorney Ryan L. Butler.
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.
Orlando Man Sentenced to More Than Nine Years for Armed RobberyRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza today sentenced Joseph Michael Price (30, Orlando) to nine years and nine months in federal prison for aiding and abetting the robbery of a retail store, and aiding and abetting the use and carrying of a firearm during and in relation to that robbery. He was also ordered to serve a three-year term of supervision following his prison sentence.
Price pleaded guilty on March 13, 2015.
According to court documents, on the morning of January 30, 2014, Price and co-conspirator Darin Leon Givens robbed the CVS store located at 7655 West Colonial Drive in Orlando, Florida. Price and Givens approached the store wearing masks, where Givens accosted a CVS employee outside the store, grabbed her shoulder, and told her to come with him. The CVS employee took Givens to the store’s office where Price was waiting, banging on the office door, trying to get inside. Once another CVS employee opened the office door, Price and Givens rushed inside and ordered the employees to fill a bag with money. The robbers then fled with approximately $4,000.
Price and Givens also robbed the same CVS store on January 20, 2014, stealing approximately $2,400.
On August 18, 2014, U.S. District Judge Roy B. Dalton, Jr. sentenced Givens to nine years in federal prison, followed by three years supervised release, for his participation in an unrelated commercial armed robbery.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.
Orlando Man Sentenced to More Than 10 Years for Armed RobberyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Brandon Maurice Long (24, Orlando) to 10 years and 10 months in federal prison for the robbery of a convenience store, and brandishing a firearm during and in relation to that robbery. The Court also ordered him to forfeit the firearms and ammunition involved in the robbery. Long pleaded guilty on April 28, 2015.
According to court documents, on the night of December 28, 2014, Long and co-defendant Dontreaun Tremayne Alexander robbed the Circle K located at 7530 Forest City Road in Orlando, Florida. Long and Alexander entered the store with their faces covered and demanded that the store cashier open the safe. Both men were carrying guns. When the cashier was unable to open the safe, Alexander threatened to shoot her. The robbery was recorded by store video and audio surveillance. Long was apprehended at the scene and Alexander fled.
The case against Alexander is currently pending.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Vincent S. Chiu and Kara M. Wick.
Operators of Atlanta Stores Enter Guilty Pleas to WIC and SNAP FraudRead the Press Release
ATLANTA - Rodney Byrd and Reginald Byrd have pleaded guilty to conspiring to commit food stamp fraud. The defendants used a series of stores in the Atlanta area to unlawfully purchase over $5.7 million in vouchers of the Georgia Women, Infants and Children (“WIC”) program and debit cards of the Supplemental Nutrition Assistance Program (“SNAP”).
“These defendants stole from a program designed to provide nutritional items to needy members of our community,” said Acting U.S. Attorney John Horn. “The scheme induced customers to forego infant formula and other necessary products in exchange for cash at less than face value of the vouchers. They put their own financial profit above the physical needs of low-income mothers and children.”
“The individuals who choose to defraud taxpayers through trafficking schemes will continue to be aggressively investigated by USDA-OIG and its law enforcement partners. Greed and arrogance drives people like the Byrds’ to feel like they are undetectable in a system where thousands of stores participate in assistance programs like SNAP and WIC. Their guilty plea should be a warning to others that you will be caught, and you will be prosecuted,” stated Karen Citizen-Wilcox, Special Agent-in-Charge with USDA-OIG- Investigations.
“The integrity of the WIC and SNAP programs must be protected from fraud and abuse by the vendors who seek to illegally profit by violating the standards established for these programs,” stated Veronica F. Hyman-Pillot, IRS Criminal Investigation, Special Agent in Charge. “This was a case of greed, deceit, manipulation and theft directed by the Byrd brothers in order to enrich themselves with ill-gotten gains. The North Georgia Financial Task Force are proud to contribute their financial expertise in unraveling financial transactions to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Rodney Byrd owned and operated Atlanta metropolitan-area stores named “Tweet Baby Tweet,” “Chicos and Chicas Variety Store,” and “Tweets, Treats, and Nic Nacs.” Reginald Byrd managed at least one of these stores. The defendants directed employees of the stores to make cash payments to customers in return for the customers’ WIC vouchers and for the use of the customers’ SNAP debit cards, in violation of the terms of the WIC program and SNAP. The cash payments were at amounts of less than face value, allowing the defendants to generate substantial profits when exchanging the vouchers.
As a result, tens of thousands of WIC vouchers totaling millions of dollars were deposited into bank accounts under the control of Rodney Byrd. A large number of these vouchers were for prescribed infant formula that is supposed to be given to malnourished infants or infants who cannot use traditional formula. Instead of selling products such as this to needy recipients, the defendants and their co-conspirators unlawfully purchased the vouchers for cash. All told, this scheme resulted in an estimated loss to the government of $5,747,817.18.
Sentencing for Rodney Byrd, 39, of Lawrenceville, Ga., and Reginald Byrd, 38, of College Park, Ga., is scheduled for October 13, 2015, at 2:00 p.m., before United States District Judge Leigh Martin May.
This case is being investigated by the United States Department of Agriculture, Office of the Inspector General, and Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Thomas J. Krepp and Jamie L. Mickelson are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Omaha Man Sentenced for Bank RobberiesRead the Press Release
United States Attorney Deborah R. Gilg announced that Kevin M. Lee, age 38, of Omaha, Nebraska, was sentenced to four years, nine months imprisonment by the Honorable Lyle E Strom, after having previously pled guilty to two bank robberies. He was also ordered to pay $1,400.00 in restitution and will be required to serve a three year term of supervised release after his release from prison.
On November 17, 2014, Lee went into the American National Bank at 1412 Harney Street, Omaha, and passed a note to the teller demanding $500. On November 18, 2014, he went to the U.S. Bank at 222 South 72nd Street, Omaha, and passed a similar note demanding $900. Law enforcement had contact with him on November 20 on a matter unrelated to the robberies. Agents were able to identify him in connection with the crimes based in part on tattoos on his fingers that matched surveillance pictures of him from the U.S. Bank robbery.
The case was investigated by the Omaha Police Department and Federal Bureau of Investigation.
Oakley Man Sentenced to 15 Years in Federal Prison for Attempted Sexual Exploitation of a Minor ChildRead the Press Release
POCATELLO - Ray Carl Short, 67, of Oakley, Idaho, was sentenced today to 180 months for attempting to produce sexually explicit videos and still images of a minor child, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Short to forfeit the camera and computer equipment used to commit the offense.
Short pleaded guilty on January 15, 2015 to attempted sexual exploitation of a minor. According to the plea agreement, an undercover special agent with Homeland Security Investigations downloaded 26 sexually exploitative images and videos of minors from Short in January 2014. In July, law enforcement agents searched Short’s residence pursuant to a federal search warrant and seized a laptop computer, a Brickhouse Security camera, and other related items. A forensic analysis of the laptop and other electronic media revealed approximately 2,934 images and 144 video files of suspected child pornography. When these images and video files were sent to the National Center for Missing and Exploited Children, it identified victims in 345 of the images and 16 of the video files.
In a folder located on Short’s computer’s hard drive, law enforcement agents observed six video files and nine image files of an additional minor victim, several of which contained sexually exploitative content. Yet more sexually exploitative videos and images of the victim were located in sub-folders.
On the day law enforcement agents executed the search warrant, Short admitted to having downloaded and received images that would be illegal or constitute child pornography and that there were images of child pornography on his laptop. In court, Short also admitted that he placed the Brickhouse camera in hidden locations in order to use the victim to take part in sexually explicit conduct for the purpose of producing visual depictions of that conduct.
The case was investigated by the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), with the assistance of the Cassia County Sheriff’s Office and Cassia County Prosecutor’s Office.
"Tragically, each time sexually explicit photos and videos of minors are downloaded, the young people shown are victimized again," said Bradford Bench, special agent in charge for ICE HSI in Seattle, Wash. "This sentencing clearly demonstrates the consequences facing those who are attempting to produce sexually explicit images and videos of minor children. ICE Homeland Security Investigations will continue to use every tool at its disposal to keep our children safe and ensure child predators are brought to justice."
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Oakland Man Found Guilty of Murder in Christmas Marijuana Robbery Near Oakland AirportRead the Press Release
OAKLAND – Earlier today, a federal jury convicted Damion Sleugh of six felonies, including first degree murder, robbery, and drug conspiracy, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson. The charges stemmed from a robbery and shooting in a parking lot near the Oakland Airport three days before Christmas in 2013.
Evidence at trial showed that Sleugh, 28, of Oakland, helped arrange a meeting to purchase five pounds of marijuana. In the early afternoon of December 22, 2013, Sleugh met with Vincent Muzac, 24, of Alameda, in the parking lot of a Walmart store near Hegenberger Road and Interstate 880 in Oakland. Surveillance video showed Mr. Muzac enter a car where he remained for four minutes before he was robbed and shot. His body was seen lying on the ground as the car sped away. A joint investigation by the FBI and the Oakland Police Department revealed that Sleugh was the driver. The evidence submitted at trial included incriminating text messages, FBI crime scene recreations, and images of Sleugh with the stolen marijuana. The photographs of Sleugh included a “selfie” taken from Sleugh’s phone two hours after the shooting; in the photograph, Sleugh is pictured in the same passenger seat where Mr. Muzac had just been shot. On March 27, 2014, Sleugh was indicted in a six-count indictment charging him with conspiracy and attempt to possess with the intent to distribute marijuana, in violation of 21 U.S.C. § 841; robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951(a); the use of a firearm during a drug trafficking crime or a crime of violence, in violation of 18 U.S.C. § 924(c); the use of a firearm during a drug trafficking crime or a crime of violence resulting in murder, in violation of 18 U.S.C. § 924 (j); and being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g).
The jury convicted Sleugh of all six counts in the indictment. The verdict also included a special finding that Sleugh committed first degree murder. The guilty verdict followed a two-week jury trial before the Honorable Yvonne Gonzalez-Rogers, U.S. District Judge.
Sleugh’s sentencing hearing is scheduled for November 4, 2015, in Oakland before Judge Gonzalez-Rogers. Sleugh faces up to a life sentence for first degree murder. Sleugh’s sentence also may include a 10-year prison term for discharging a firearm during a crime of violence or drug-trafficking crime. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Damali Taylor and Joseph Alioto Jr. prosecuted the case, along with paralegals Patty Lau and Christine Tian. The prosecution is the result of an investigation led by Special Agent Russ Nimmo of the Federal Bureau of Investigation and detectives Randy Brandwood and Phong Tran of the Oakland Police Department.
North Haven Man Sentenced to More Than 3 Years in Federal Prison for Traffiicking Prescription NarcoticsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRIAN EARL, 40, of North Haven, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 37 months of imprisonment, followed by three years of supervised release, for trafficking prescription narcotics.
According to court documents and statements made in court, in May 2013, the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Ansonia Police Department initiated an investigation into James Costanzo, who had been identified as an illegal distributor of narcotic pharmaceuticals in Ansonia. The investigation, which included multiple controlled purchases of oxycodone and the use of electronic surveillance, revealed that Costanzo sold prescription narcotics to numerous customers from his Dwight Street residence. The investigation further revealed that EARL supplied Costanzo with large quantities of oxycodone and other prescription narcotics, and also sold drugs to his own customers.
EARL and Costanzo were arrested on January 23, 2014.
At the time of his arrest, EARL possessed $2,557 in cash, and a search of his North Haven residence revealed approximately 11,000 prescription pills, including oxycodone and oxymorphone.
On February 17, 2015, EARL pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone and oxymorphone.
On February 27, 2015, Costanzo pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone and oxymorphone, and one count of knowingly engaging in a monetary transaction involving criminally derived property. He is detained while awaiting sentencing.
This investigation has been conducted by the DEA’s New Haven Tactical Diversion Squad, the Ansonia Police Department and the Fairfield Police Department. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Michael E. Runowicz.
New Yorker Marcus Delille Pleads Not Guilty to Possessing Counterfeit Credit Cards and Driver's LicensesRead the Press Release
The United States Attorney for the District of Vermont announced that Marcus Delille, 26, of Brooklyn, New York, pleaded not guilty today in United States District Court in Burlington to possessing counterfeit credit cards and identification documents. U.S. Magistrate Judge John M. Conroy released Delille on conditions pending trial, which has not been scheduled.
On June 17, 2015, a federal grand jury in Rutland returned a two-count indictment charging Delille with fraudulently possessing 15 or more counterfeit access devices and unlawfully possessing five or more false identification documents. According to court records, Delille was stopped for speeding by a Vermont State trooper on April 23, 2015 just north of Brattleboro. During the course of the traffic stop, the trooper discovered that Delille had in the rental car he was driving and on his person about forty counterfeit credit cards that had not been issued to him, as well as counterfeit driver's licenses which appeared to have been issued by California, Texas, Pennsylvania and Illinois. Delille was originally charged in state court with identity theft but those charges were dismissed after the federal indictment was returned.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Delille faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Delille is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
New Hampshire Man Sentenced to Prison for Conspiracy to File False Tax Returns in Connection to a Fraud Against a Dubuque College BookstoreRead the Press Release
On Thursday, July 16, 2015, a New Hampshire man who filed false tax returns was sentenced to a year in federal Prison.
Thomas DeFelice, age 37, was sentenced to 12 months in prison in federal court in Cedar Rapids. His case was connected to that of James Spaulding, age 35, from Longmont, Colorado, who was previously convicted of one count of mail fraud and two counts of filing false tax returns, and sentenced to 57 months in federal prison.
In plea agreements, Spaulding and DeFelice admitted Spaulding was the director of the Clarke University Bookstore between 2011 and 2012. Spaulding and DeFelice created a fictitious corporation called RVP Wholesale Books (“RVP”), then caused RVP to issue false invoices to Clarke University purporting to show that RVP supplied the Clarke University bookstore with books. In truth, RVP never supplied the Clarke University bookstore with any books. Spaulding and DeFelice split the proceeds of the fraud, totaling more than $302,000.00. Spaulding convinced DeFelice that there were, in fact, books purchased through RVP and delivered to Clarke University. DeFelice agreed with Spaulding, however, to falsely inflate the purported cost of goods sold so as to fraudulently decrease RVP’s and their personal tax liabilities. Spaulding and DeFelice therefore filed false tax returns for 2011 and 2012 in which they failed to disclose the illegal proceeds obtained from the fraud. Spaulding later lied to a federal grand jury in Cedar Rapids, Iowa, by falsely claiming RVP supplied the Clarke University bookstore with books.
DeFelice was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. DeFelice was sentenced to 12 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to pay all taxes and penalties owed in connection with the false tax returns. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. DeFelice was permitted to self-surrender to a federal prison at a later date.
The cases were prosecuted by Assistant United States Attorney C.J. Williams and were investigated by the Dubuque Police Department and the Internal Revenue Service Criminal Investigation Division.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are 14-CR-1022-LRR for Spaulding and 15-CR-1005-LRR for DeFelice.
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New Hampshire Man Pleads Guilty to Being A Felon in Possession of FirearmsRead the Press Release
CONCORD, N.H. – Nicholas Rogers, 25, of Hooksett, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to being a felon in possession of firearms, announced Acting United States Attorney Donald Feith.
On November 14, 2014, Rogers pleaded guilty to in the United States District Court to one count of unlicensed firearms dealing and one count of making a false statement during the acquisition of a firearm. The court’s acceptance of Rogers’ guilty plea rendered Rogers a felon who was prohibited from possessing a firearm. He was scheduled to be sentenced in May 2015. However, prior to his sentencing and despite his felony status, in April 2015 Rogers used an online classified website to trade and purchase firearms. During one of these exchanges, Rogers attempted to sell a firearm to an undercover ATF agent.
A subsequent investigation revealed that from March 19, 2015 through April 11, 2015, Rogers traded or purchased five firearms from four different individuals through the online website. In addition, on April 17, 2015, ATF executed a search warrant at Roger’s residence and recovered a Norinco, SKS Model, 7.62 caliber rifle.
“The United States Attorney’s Office will work with law enforcement to identify, investigate and prosecute those who would violate the nation’s gun laws,” said Acting United States Attorney Donald Feith. “This case serves as an example of how the private trading of firearms can thwart the systems put in place to keep firearms out of the hands of criminals. We will continue to aggressively prosecute those who illegally possess firearms.”
"ATF is committed to combating illegal firearms trafficking whether it’s online or on the street. Illegal firearms trafficking puts public safety at risk and our goal is to keep guns out of the hands of criminals," stated ATF Boston Field Division Special Agent in Charge, Daniel J. Kumor.
Rogers faces a maximum sentence of ten years imprisonment. Rogers is scheduled to be sentenced on September 11, 2015. Rogers was detained pending sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
New Hampshire Man Charged with Computer Hacking and Cyberstalking in “Sextortion” Scheme Targeting MinorsRead the Press Release
WASHINGTON – A New Hampshire man was charged with remotely hacking into the social media, email and online shopping accounts of almost a dozen minor females and threatening that he would delete, deface, and make purchases from the accounts unless the victims sent him sexually explicit photographs of themselves.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Donald Feith of the District of New Hampshire and Special Agent in Charge Lisa A. Quinn of the U.S. Secret Service’s Boston Field Office made the announcement.
“Predators troll the Internet in search of vulnerable children to extort for their own sexual gratification,” said Assistant Attorney General Caldwell. “The Criminal Division and our law enforcement partners are committed to protecting our youth from sextortion and to finding and prosecuting wrongdoers lurking in the shadows of the Internet.”
“Individuals who would take advantage of today’s modern technologies to entice and then threaten minors deserve special investigative and prosecutorial attention,” said Acting U.S. Attorney Feith. “We will continue to work with law enforcement, technology specialists and education professionals to teach minors about the dangers of placing personal information in social media and the need to report threats of this nature so that we may bring these predators to justice.”
“Child sexual exploitation is an alarming problem in our society,” said Special Agent in Charge Quinn. “The Secret Service is committed to work closely with our law enforcement partners to identify and prosecute these predators.”
Ryan J. Vallee, 21, of Franklin, New Hampshire, was charged by indictment with 10 counts of making interstate threats, two counts of computer hacking to steal information, seven counts of computer hacking to extort and seven counts of aggravated identity theft. Vallee is scheduled to make his initial appearance at 4:30 p.m. EDT in the District of New Hampshire.
According to the indictment, from 2012 through November 2013, Vallee, using various aliases that included “Seth Williams” and “James McRow,” engaged in a computer hacking and “sextortion” campaign designed to coerce numerous minor females to provide him with sexually explicit photographs of themselves. He allegedly hacked into and took control of the girls’ online accounts – including their e-mail, Facebook and Instagram accounts – and threatened to delete the accounts, and defaced the contents of some of the accounts. Vallee also allegedly hacked into the girls’ Amazon.com accounts and, using their stored payment card information and shipping addresses, ordered items of a sexual nature and had them shipped to the girls’ homes. Vallee also allegedly obtained sexually explicit photographs of the girls and their friends and distributed them to others.
The indictment alleges that, in conjunction with his harassment campaign, Vallee sent communications to his victims, usually using a text message spoofing or anonymizing service, threatening to continue his attacks unless the victims provided sexually explicit photographs of themselves. The indictment alleges that, when victims refused to comply with Vallee’s demands and begged him to leave them alone, Vallee responded with threats to inflict additional harm.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the U.S. Secret Service, with substantial assistance from the Belmont, New Hampshire, Police Department. The case is being prosecuted by Senior Trial Attorney Mona Sedky and Trial Attorney Sumon Dantiki of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.
Montana Man Sentenced to Prison for Telephone Billing SchemeRead the Press Release
MISSOULA – A federal judge sentenced Steven Vincent Sann, 61, of Stevensville, Montana, to two years in prison and one year of supervised release for orchestrating a nationwide scheme involving extra charges listed on land-line telephone bills. Sann was also ordered to forfeit $500,000, which he obtained from the scheme then transferred to his personal investment accounts. The sentencing follows an April 3, 2015, change of plea in which Sann pleaded guilty to wire fraud and money laundering charges. Chief District Court Judge Dana Christensen presided over the case, and sentenced Sann to 24 months in prison on each count, to run concurrently.
“Sann engaged in a complex manipulation of tens of thousands of consumers across the country,” said Montana U.S. Attorney Michael Cotter. “Through a long-term joint effort with our law enforcement partners, we have held this man accountable for his crimes and sent a shot across the bow warning others who would engage in similar conduct.”
In an Offer of Proof filed by Assistant United States Attorney Timothy J. Racicot, the government stated that if the case had proceeded to trial it would have presented evidence that Sann managed several companies (the “Sann Companies”) that were engaged in the business of marketing a stand-alone voicemail and fax service, using a practice known as Local Exchange Carrier (“LEC”) billing to collect for the service’s charges. Sann was the president, secretary, treasurer, and director of one of those companies, called Emerica Media Corporation (“Emerica”). The Sann Companies were incorporated in Nevada and most of them designated one person – either a relative or friend of Sann’s – to serve as president, secretary, treasurer, and director.
Utilizing LEC billing to collect for services has come under intense scrutiny over the past several years based on allegations that charges are placed on customers’ monthly bills without their knowledge or consent. The practice is known as cramming and involves the placement of unauthorized charges on residential land-line telephone bills. The unauthorized charging has has precipitated myriad changes in the industry. In order to place charges on land-line telephone bills for its services, the Sann Companies contracted with billing aggregators such as Transaction Clearing, which worked with the phone companies (LECs) to facilitate the placing of charges on the monthly phone bills of the Sann Companies’ customers.
Sann’s guilty pleas relate to misrepresentations he caused to be made to Transaction Clearing concerning customer complaints. Specifically, in March of 2010, Transaction Clearing defined what it considered a “cramming complaint.” The Sann Companies’ contracts with Transaction Clearing required them to report complaints meeting that definition on a monthly basis. The reporting obligation applied whether or not the complaint actually related to a customer being signed up for the service without their consent or knowledge, or was justified. If the complaints reached a certain threshold, the LECs and billing aggregators would require entities such as the Sann Companies to submit action plans in an effort to reduce the volume of complaints. If complaints persisted, the LECs could suspend the Sann Companies and terminate the billing arrangement.
The contracts also required each Transaction client, including the Sann Companies, to disclose the names of other companies or entities owned or controlled by that client’s officers or principals. In order to continue to receive revenue for the Sann Companies from Transaction Clearing, Sann and his agents failed to accurately report complaints meeting Transaction Clearing’s definition of cramming, and also failed to fully disclose Sann’s interest in the Sann Companies.
In relation to Sann’s wire fraud conviction, an employee of Emerica’s accounting firm in Montana, at the direction of Emerica in Montana, sent an email to Transaction Clearing in Texas on March 3, 2011, representing the Sann Companies had no complaints meeting Transaction Clearing’s definition of cramming during February 2011. In fact, the Sann Companies received approximately 479 complaints that met Transaction Clearing’s definition of cramming during February 2011. As it relates to the money laundering conviction, Sann transferred $100,000 from a bank account to a personal investment account on April 4, 2011. The money involved in that transfer was paid to the Sann Companies in connection with funds received from utilizing LEC billing and therefore was derived from Sann’s criminal wire fraud scheme.
Assistant U.S. Attorney Tim Racicot prosecuted the case, which was investigated by the FBI and IRS. Sann will have to serve at least 85% of his sentence before being released from federal prison.
Minnesota Woman and Iowa Man to Federal Prison for Iowa Meth ConspiracyRead the Press Release
A Minnesota woman and an Iowa man who conspired to distribute methamphetamine were sentenced to four and eleven years respectively in federal prison.
Jillian Preston, 36, from Herron Lake, Minnesota, received the prison term on July 9, 2015, after an April 17, 2015, guilty plea to conspiracy to distribute methamphetamine. Todd Daugherty, 52, from Spencer, Iowa, received the prison term on May 26, 2015, after a February 19, 2015, guilty plea to conspiracy to distribute methamphetamine.
At their guilty pleas, Preston and Daugherty each admitted that from 2013 through May 2014 they were involved in a conspiracy that distributed more than 50 grams of actual (pure) methamphetamine in the Spencer (Lakes), Iowa area. Preston obtained ¼ to ½ pound quantities from sources in Minnesota for distribution in Iowa. Daugherty obtained one ounce to ¼ pound quantities from Preston for further redistribution in Iowa. And four ounces of methamphetamine was seized from Daugherty (after he had received it from Preston) in a Minnesota traffic stop.
Preston and Daugherty were sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Preston was sentenced to 48 months’ imprisonment. Daugherty was sentenced to 132 months’ imprisonment. Each must pay a special assessment of $100 and each must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Preston and Daugherty are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Clay County Sheriff’s Office, Iowa Great Lakes Drug Task Force, Minnesota Bureau of Criminal Apprehension, Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, and the Minnesota State Patrol.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-4096 and CR14-4067.
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Medical Billing Manager Sentenced in Health Care Fraud CaseRead the Press Release
SYRACUSE, NEW YORK – Bonnie Meislin, 43, of Utica, was sentenced to fifteen months imprisonment to be followed by three years of supervised release, a fine of $2,400.00 and restitution to Medicare of $84,265.11 following her convictions for health care fraud and conspiracy, announced United States Attorney Richard S. Hartunian.
Meislin was employed as the billing manager for Upstate Pain Medicine, a medical practice owned by Mahesh Kuthuru, M.D, with offices in Fulton and Utica, New York. Following a six day trial in February 2015, Meislin was found guilty on 23 counts of health care fraud and 1 count of conspiring with Kuthuru to send false and fraudulent billings to Medicare. Evidence at trial showed that in 2009, Dr. Kuthuru moved to Las Vegas where he opened a medical practice known as Desert Pain Management. Thereafter, Kuthuru began to spend the majority of his time in Las Vegas, returning to his Utica and Fulton offices only sporadically. From January 2010 through September 2011, Meislin and Kuthuru submitted false and fraudulent bills to Medicare which indicated that Kuthuru or another medical professional under his direct supervision had treated patients in the New York offices, when Kuthuru had not done so.
Mahesh Kuthuru, M.D. pled guilty to health care fraud and illegal distribution of prescriptions on January 22, 2015. He was sentenced on May 22, 2015 to serve 18 months imprisonment, 3 years of supervised release and restitution of $84,265.11 to Medicare.
"Protecting the integrity of the nation’s health care system by aggressively prosecuting those who defraud it is a high priority for my office. We will continue to pursue investigations and bring charges against people who prey upon the funds and procedures designed to serve patients and enhance the delivery of services by medical professionals," said United States Attorney Richard S. Hartunian.
The case was investigated by the Federal Bureau of Investigation ("FBI"), the Drug Enforcement Administration ("DEA"), the New York Department of Health, Bureau of Narcotic Enforcement, the Health and Human Services Department, the Worker’s Compensation Board, Office of Inspector General, Excellus Special Investigations Unit, Safeguard Services and MVP Health Care, Special Investigations Unit. The case was prosecuted by Assistant U.S. Attorney Edward R. Broton.
Medford Man Arrested for Impersonating a U.S. MarshalRead the Press Release
BOSTON - A Medford man was arrested today for impersonating a United States Marshal.
Gordon Malyerck, 68, was arrested and appeared in court today in connection with an incident in which he allegedly impersonated a United States Marshal on July 7, 2015, at Middlesex Fells Reservation. Charges were filed on July 15, and unsealed today after Malyerck’s arrest.
According to court documents, Malyerck, wearing a shirt with the USMS badge on the pocket, approached a Park Ranger and falsely identified himself as a Deputy U.S. Marshal. Without further inquiry from the Park Ranger, Malyerck produced his “USMS credentials” and claimed that he had recently been deputized as a U.S. Marshal at a ceremony in Washington, D.C. Malyerck, who carried an exposed .38 caliber handgun on his waistband at the time of the incident, suggested that Park Rangers be armed and deputized. Additionally, Malyerck noted that he had seen young women running around in the park and that he would take action if he observed an attack.
When approached by federal agents on July 14, Malyerck admitted to possessing credentials and advised law enforcement officials that he had been deputized by a Deputy U.S. Marshal in Baltimore. Law enforcement learned that the Baltimore agent had not “deputized” Malyerck, but had sent him an item with the U.S. Marshal insignia.
Malyerck was released with conditions and is set to appear in federal court on July 27 for a probable cause hearing.
United States Attorney Carmen M. Ortiz and United States Marshal John Gibbons made the announcement today.
The case is being prosecuted by Assistant United States Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Maryland Man Sentenced to 80 Months in Prison for Traffic Fatality in Downtown WashingtonRead the Press Release
WASHINGTON – James B. Chandler, Jr., 33, of Silver Spring, Md., was sentenced today to 80 months in prison on charges of voluntary manslaughter and driving under the influence of PCP, stemming from a crash that killed Philip D. Snodgrass, who was walking on a sidewalk in downtown Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Chandler pled guilty in April 2015, in the Superior Court of the District of Columbia, in an Alford plea. Under such a plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction; Chandler entered an Alford plea because of his intoxication by PCP at the time of the crash and his inability to recollect events. He has been in custody since his arrest. The Honorable Robert E. Morin sentenced him today. Following his prison term, Chandler will be placed on five years of supervised release.
“A bright young man was killed when this defendant careened through downtown D.C. at 60 miles per hour while high on PCP,” said Acting U.S. Attorney Cohen. “We see cases over and over again where drivers using PCP lose control with devastating consequences. We have to double down on our efforts to prevent these tragedies.”
According to the government’s evidence, on Monday, Feb. 23, 2015, at about 4:50 p.m., during downtown Washington’s rush hour, Chandler drove his SUV at a high rate of speed west on H Street NW, between 2nd and 4th Streets, striking two other vehicles without stopping. As Chandler approached the intersection with 4th Street NW, he crossed over into H Street’s eastbound lanes. Chandler crossed 4th Street and struck the southeast curb of the corner of 4th and H Streets, mounted the sidewalk and struck the retaining wall of the Government Accountability Office (GAO) building. By crashing into the wall, Chandler caused his SUV to flip and roll several times along the south sidewalk of the 400 block of H Street, striking and killing Mr. Snodgrass, 27, who had been walking on the sidewalk.
Mr. Snodgrass, who was assistant legal counsel for the National Federation of Federal Employees, was on his way to night classes at Georgetown University’s Law Center.
The District of Columbia Fire and Emergency Medical Services Department and the Metropolitan Police Department (MPD) arrived on the scene and removed Chandler from the wreck. Chandler admitted to a paramedic that he had smoked a PCP-laced cigarette that day.
Surveillance video, which captured footage of the crash, was examined and it was estimated that Chandler was driving at a speed approaching 60 mph in the 25 mph zone. The video, as well as examination of the crash scene, also indicated that Chandler never attempted to apply his brakes or take any action to avoid the crash.
Mr. Snodgrass was taken to the Washington Hospital Center, where he was pronounced dead. Chandler was taken to Howard University Hospital for treatment. While at the hospital, Chandler was examined by an officer with the MPD’s Driver Impairment Unit, who determined that Chandler was under the influence of a narcotic. Also while at the hospital, Chandler’s blood was drawn, which later tested positive for PCP.
In announcing the sentence, Acting U.S. Attorney Cohen praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit, the Driver Impairment Unit and the First District. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Jennifer Clark. Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
Martin County Resident Sentenced for Manufacturing Hash Oil in His Apartment Laboratory and Possessing a FirearmRead the Press Release
A Martin County resident was sentenced to 90 months in prison for manufacturing hash oil in his apartment laboratory and possessing a firearm.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, William D. Snyder, Sheriff, Martin County Sheriff’s Office, and David Dyess, Chief, Stuart Police Department, made the announcement.
Daniel Paul Vranich, 31, of Lake Park, was sentenced by United States District Court Judge Kenneth M. Mara, in Fort Pierce, to 30 months’ imprisonment for endangering human life while illegally manufacturing a controlled substance to run consecutive to a term of 60 months’ imprisonment for possession of a firearm in furtherance of a drug trafficking crime. Upon his release from incarceration, Vranich will be placed on supervised release for three years.
According to the stipulated factual basis in support of the defendant’s previous guilty plea, on December 30, 2014, at approximately 4:00 a.m., an emergency services call was made regarding an explosion at an apartment in Stuart, Florida. Members of the Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue, Stuart Fire Rescue and State Fire Marshal’s Office responded to the residence and discovered a smoldering fire, as well as a large industrial vacuum drying oven with a timing device. Stuart Police Department detectives also found numerous large glass cylinders containing marijuana, numerous empty butane cans, air pumps and compressors, a vacuum oven, wax paper with approximately 48 grams of butane hash oil, a food saver sealing machine, two digital scales, an electric grinder, a money counting machine, a vacuum chamber, and numerous containers and storage bags. In addition, law enforcement discovered a loaded Sig Sauer .45 caliber pistol and personal documents belonging to Vranich. DEA agents and members of the Hazardous Material Unit (Hazmat) determined that the discovered chemicals, equipment and other items were used to operate a butane hash oil laboratory in the residence. The investigation further revealed that Vranich resided in the apartment with his family.
The stipulated factual basis further indicates that Vranich admitted that he was manufacturing and possessing with the intent to distribute the controlled substances, identified as marijuana and hashish oil, and that he possessed the firearm in furtherance of his drug trafficking operation. Vranich also admitted that while manufacturing and attempting to manufacture hashish oil he created a substantial risk of harm to human life.
Hash oil is a highly potent derivative of marijuana, obtained by extracting the resins containing Tetrahydrocannabinol (THC), the active psychoactive compound, from marijuana buds and plant matter through a chemical process using materials and equipment like those found in Vranich’s apartment. Because the butane vapor created during the process is extremely volatile, highly flammable and large amounts are required in the process of extracting the resin from the raw marijuana, explosions and fires from accidents have resulted in the destruction of property, severe injuries and even death.
Mr. Ferrer commended the investigative efforts of the ATF, DEA, Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue, Stuart Fire Rescue and the State Fire Marshal’s Office. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Manhattan U.S. Attorney Announces the Arrest of Afghan Narcotics Traffickers for Conspiring to Import Heroin into the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mark Hamlet, Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), today announced the unsealing of an indictment charging HAJI LAJAWARD, AMAL SAID SAID ALAM SHAH, a/k/a “Haji Zar Mohammad,” and HABIBULLAH with conspiring to import heroin into the United States. LAJAWARD and SHAH were arrested in Thailand on June 13, 2015, and subsequently brought to the United States. They will be presented and arraigned before U.S. Magistrate Judge Ronald L. Ellis this afternoon. HABIBULLAH remains at large.
Manhattan U.S. Attorney Preet Bharara said: “At a time when heroin use and overdose deaths are on the rise in our communities, these three men allegedly conspired to import into this country kilogram quantities of heroin from Afghanistan. I want to thank the DEA for their excellent work in investigating this matter.”
DEA Special Agent in Charge Mark Hamlet said: “Like many international criminal networks, these alleged drug traffickers have no respect for borders, and no regard for either the rule of law or who they harm as a result of their criminal endeavors. This investigation highlights the significance of Afghanistan as a source for heroin around the world. I wish to thank all of our international law enforcement partners for their outstanding efforts and partnership in dismantling this sophisticated and dangerous international criminal enterprise.”
According to the allegations in the Indictment,[1] the defendants and others conspired between May 2014 and April 2015 to violate U.S. narcotics laws prohibiting the importation of heroin. Specifically, the Indictment charges LAJAWARD, SHAH, and HABIBULLAH with conspiring to (i) import one or more kilograms of heroin into the United States from a foreign country; and (ii) distribute one or more kilograms of heroin knowing and intending that it would be imported into the United States.
As alleged in the Indictment, on January 15, 2015, Lajaward caused the delivery of three kilograms of heroin to another individual in Kabul, Afghanistan, while, on the same day, Habibullah received payment for that heroin in the United Arab Emirates. Later that day, Lajaward and Shah spoke on the phone regarding the heroin transaction.
The charge in the Indictment carries a maximum penalty of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge
Mr. Bharara praised the outstanding investigative work of the DEA’s Special Operations Division; the DEA’s Kabul, Dubai, Tokyo, and Bangkok Country Offices; the DEA’s New York Field Division; the CNP-A Sensitive Investigative Unit of the Afghan Ministry of the Interior; the Dubai Police Department and the Anti-Narcotics Unit of the Emirati Ministry of Interior; Japan’s National Police Agency and the Saitama Prefectural Police; Thailand’s Sensitive Investigative Unit of the Royal Thai Police Narcotics Suppression Bureau; Thailand’s Attorney General’s Office; Thailand’s Ministry of Foreign Affairs; INTERPOL; the U.S. Department of State; and the U.S. Department of Justice Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney Brendan F. Quigley is in charge of the prosecution.
The charge contained in the Indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Man Previously Convicted of Drug Felony Sentenced for Methamphetamine ChargesRead the Press Release
A man who possessed with the intent to distribute methamphetamine was sentenced July 15, 2015, to 18 years in federal prison.
Kirk Anthony Bennett, age 43, from Charles City, Iowa, received the prison term after a January 16, 2015, guilty plea to possession with intent to distribute methamphetamine. Bennett was previously convicted of possession of a controlled substance in 2011.
At the guilty plea, Bennett admitted on September 2, 2014, he was in possession of ice methamphetamine which he intended to distribute. Bennett was found in possession of 123.11 grams of ice methamphetamine when a search warrant was executed after a controlled package delivery of ice methamphetamine was served at his residence.
Bennett was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Bennett was sentenced to 216 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
Bennett is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-3053.
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Man Pleads Guilty to Tax Evasion for Not Reporting Income from Wire Fraud SchemeRead the Press Release
CONCORD, NEW HAMPSHIRE – William M. Richmond, 59, formerly of Atkinson, New Hampshire, pleaded guilty to three counts of tax evasion for failing to report substantial illicit income he received from a wire fraud scheme from 2006 through 2008, reports Acting United States Attorney Donald Feith.
From on or about May 18, 2005, through in and around April 2009, Richmond held a durable power of attorney to act for the benefit of Richard Piller. It gave him plenary power to manage Piller’s personal and business financial interests and obligations while Piller and his then wife, Joan Ettelson Piller (Ettelson), were out of the country for extended periods. Richmond used the Power of Attorney to perpetrate a wire fraud scheme through which he used Piller’s and Ettelson’s funds to pay his personal and business expenses. Richmond failed to disclose that criminally derived income on his tax returns for 2006, 2007, and 2008, and he failed to list the substantial additional taxes he owed for each year based on that income. Instead, Richmond falsely claimed that his only income was taxable interest and that he owed no taxes for each of the three years.
Richmond is facing a maximum sentence of five years in prison and a maximum fine of $250,000. Under the terms of a plea agreement, Richmond will also be ordered to pay restitution of an amount to be determined by the court to Richard Piller and Joan Ettelson. A sentencing hearing has been scheduled for November 3, 2015.
This case was investigated by special agents of the FBI and the IRS – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Mark S. Zuckerman.
Lynchburg Man Pleads Guilty to Child Pornography ChargeRead the Press Release
LYNCHBURG, VIRGINIA – A Colonel with the Virginia National Guard pled guilty this week in the United States District Court for the Western District of Virginia in Lynchburg to a federal child pornography charge.
Gary Williamson, 54, of Lynchburg, Va., waived his right to be indicted and pled guilty this week to a one-count Information charging him with knowingly receiving and distributing child pornography.
“Those who trade in this illicit material will continue to be held accountable,” Acting United States Attorney Anthony P. Giorno said today. “Protecting our children is Priority one for my office. Children are often the most vulnerable among us and we won’t hesitate to prosecute those whose actions are aimed at exploiting them.”
According to evidence presented at this week’s guilty plea hearing by Assistant United States Attorney Daniel Bubar, the Roanoke office of Homeland Security Investigations became aware of Williamson’s distribution of child pornography on October 14, 2014, through information gathered through an unrelated investigation of a website located outside the United States. In December 2014, Williamson was interviewed at his home and a search warrant was executed for various computers and media storage devices. During this search, Williamson admitted to controlling an email account and a username for the subject website that have been used to trade suspected child pornography. Subsequent forensic analysis of the defendant’s computer and other media storage devices showed he possessed more than 2,000 images of child pornography, many of which he distributed via the subject website bulletin boards and email.
At sentencing, Williamson faces a mandatory minimum sentence of five years in prison and a maximum possible penalty of up to twenty years in prison.
The investigation of the case was conducted by the Homeland Security Investigations, Roanoke Office and the Virginia Attorney General’s Office. Assistant United States Attorney Daniel Bubar is prosecuting the case for the United States.
Louis Berger International Resolves Foreign Bribery ChargesRead the Press Release
Two Former Company Executives Plead Guilty to Participating In Bribery Scheme
Louis Berger International Inc. (LBI), a New Jersey-based construction management company admitted to violations of the Foreign Corrupt Practices Act (FCPA) and agreed to pay a $17.1 million criminal penalty to resolve charges that it bribed foreign officials in India, Indonesia, Vietnam and Kuwait to secure government construction management contracts. Two of the company’s former executives also pleaded guilty to conspiracy and FCPA charges in connection with the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division made the announcement.
LBI entered into a deferred prosecution agreement (DPA) today and admitted its criminal conduct, including its conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to the DPA, LBI has agreed to pay a $17.1 million criminal penalty, to implement rigorous internal controls, to continue to cooperate fully with the department and to retain a compliance monitor for at least three years.
Richard Hirsch, 61, of Makaati, Philippines, and James McClung, 59, of Dubai, United Arab Emirates, each pleaded guilty to one count of conspiracy to violate the FCPA and one substantive count of violating the FCPA. Hirsch previously served as the Senior Vice President responsible for the company’s operations in Indonesia, Thailand, the Philippines and Vietnam. McClung previously served as the Senior Vice President responsible for the company’s operations in India and, subsequent to Hirsch, in Vietnam. The sentencing hearings for Hirsch and McClung are scheduled for Nov. 5, 2015.
According to admissions in the DPA and statements in the charging documents, from 1998 through 2010, the company and its employees, including Hirsch and McClung, orchestrated $3.9 million in bribe payments to foreign officials in various countries in order to secure government contracts. To conceal the payments, the co-conspirators made payments under the guise of “commitment fees,” “counterpart per diems,” and other payments to third-party vendors. In reality, the payments were intended to fund bribes to foreign officials who had awarded contracts to LBI or who supervised LBI’s work on contracts.
Among other factors, in entering into a DPA in this case, the government considered: (1) LBI’s self-reporting of the misconduct; (2) the company’s cooperation, including voluntarily making both U.S. and foreign employees available for interviews, and collecting, analyzing and organizing evidence and information for federal investigators; (3) the company’s extensive remediation, including terminating the officers and employees responsible for the corrupt payments; and (4) the company’s demonstrated commitment to improving its compliance program and internal controls.
This case was investigated by the FBI’s Newark Division. This is being prosecuted by Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Thomas J. Eicher and Scott B. McBride of the District of New Jersey. The Criminal Division’s Office of International Affairs also provided assistance.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Louis Berger International Complaint
Louis Berger International Continuance & DPA
Louis Berger International Resolves Foreign Bribery ChargesRead the Press Release
Two Former Company Executives Plead Guilty to Participating In Bribery Scheme
NEWARK, N.J. – Louis Berger International Inc. (LBI), a New Jersey-based construction management company, admitted to violations of the Foreign Corrupt Practices Act (FCPA) and agreed to pay a $17.1 million criminal penalty to resolve charges that it bribed foreign officials in India, Indonesia, Vietnam and Kuwait to secure government construction management contracts. Two of the company’s former executives also pleaded guilty today to conspiracy and FCPA charges in connection with the scheme.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division made the announcement.
LBI entered into a deferred prosecution agreement (DPA) today and admitted its criminal conduct, including its conspiracy to violate the anti-bribery provisions of the FCPA. LBI has agreed to pay a $17.1 million criminal penalty, to implement rigorous internal controls, to continue to cooperate fully with the department and to retain a compliance monitor for at least three years.
Richard Hirsch, 61, of Manila, Philippines, and James McClung, 59, of Dubai, United Arab Emirates, each pleaded guilty to one count of conspiracy to violate the FCPA and one substantive count of violating the FCPA.Hirsch previously served as the senior vice president responsible for the company’s operations in Indonesia, Thailand, the Philippines and Vietnam.McClung previously served as the senior vice president responsible for the company’s operations in India and, subsequent to Hirsch, in Vietnam.The sentencing hearings for Hirsch and McClung are scheduled for Nov. 5, 2015.
According to admissions in the DPA and statements in the charging documents:
From 1998 through 2010, the company and its employees, including Hirsch and McClung, orchestrated $3.9 million in bribe payments to foreign officials in various countries in order to secure government contracts.To conceal the payments, the conspirators made payments under the guise of “commitment fees,” “counterpart per diems,” and other payments to third-party vendors.In reality, the payments were intended to fund bribes to foreign officials who had awarded contracts to LBI or who supervised LBI’s work on contracts.
Among other factors, in entering into a DPA in this case, the government considered: (1) LBI’s self-reporting of the misconduct; (2) the company’s cooperation, including voluntarily making both U.S. and foreign employees available for interviews, and collecting, analyzing and organizing evidence and information for federal investigators; (3) the company’s extensive remediation, including terminating the officers and employees responsible for the corrupt payments; and (4) the company’s demonstrated commitment to improving its compliance program and internal controls.
This case was investigated by the FBI’s Newark Division and criminal investigators with the U.S. Attorney’s Office, District of New Jersey. The government is represented by Assistant U.S. Attorneys Thomas J. Eicher and Scott B. McBride of the District of New Jersey and Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section.The Criminal Division’s Office of International Affairs also provided assistance.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .
Lodi Man Sentenced to 9 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Jose Millan, 51, of Lodi, was sentenced today by United States District Judge Garland E. Burrell Jr. to nine years in prison for possessing almost 10 pounds of methamphetamine with the intent to distribute it, United States Attorney Benjamin B. Wagner announced.
According to court documents, in May of 2014, Millan told a confidential informant that he knew people who received regularly scheduled deliveries of methamphetamine from Mexico, and that multiple pounds of methamphetamine were being stored in Lodi. Later that month, officers saw Millan and a co-defendant walk into Millan’s garage and depart shortly afterward carrying an ice chest, which they loaded into the trunk of a car. They drove the car to the parking lot of a restaurant in Lodi, where the confidential informant had arranged to meet Millan. Officers arrested Millan and the co-defendant without incident. In the ice chest in Millan’s car, officers found 4.4 kilograms of methamphetamine.
“Today’s prison sentence is a reminder of the serious consequences drug traffickers face for trying to bring illicit drugs into our communities,” said Ray Greenlee, assistant special agent in charge for HSI Sacramento. “ICE remains committed to dismantling the international drug trade while ensuring that those who are involved don’t benefit financially.”
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lodi Police Department. Special Assistant United States Attorney Josh F. Sigal prosecuted the case.
Millan remains in federal custody. His co-defendant, Miguel Rodriguez, is scheduled to be sentenced on July 31, 2015, in Sacramento before Judge Burrell.
Lincoln Man Sentenced for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg and Nebraska Attorney General Doug Peterson announced that Scott N. O'Leary, 20, of Lincoln, Nebraska, was sentenced on July 17, 2015 in Lincoln, Nebraska, to 144 months in prison by Senior United States District Judge Richard G. Kopf, for receipt of child pornography. Additionally, once released from federal prison, O'Leary will be on supervised release for 15 years and will be required to register as a sex offender.
In August of 2010, the National Center for Missing and Exploited Children reported a CyberTip to the Nebraska State Patrol regarding child pornography that had been uploaded to a social media account on the internet. In June of 2012, another CyberTip was reported to the Nebraska State Patrol regarding child pornography that had been uploaded to another social media account. Both of those CyberTips were associated with accounts listed under a female’s name.
Nebraska State Patrol investigators were able to trace the IP address of the computer associated with those accounts, and through further investigation, determined that Scott N. O’Leary was the suspected offender.
State Patrol investigators determined that O’Leary had created the fictional accounts in question. O'Leary created several accounts on various websites and social networks under the female pseudonym. He had used the fictional persona to communicate with young boys ranging in age from 12 to 17. O'Leary solicited and received naked images from approximately half the boys he had been in contact with. He also used bribes and threats to obtain images.
In addition to soliciting naked images from young boys, O’Leary uploaded images of at least one victim to a website known for the exchange of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol with assistance from the Department of Homeland Security. The case was jointly prosecuted by the U.S. Attorney’s Office and the Nebraska Attorney General’s Office.
Lake Charles woman pleads guilty to mail fraud in connection with Deepwater Horizon claims schemeRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Lake Charles woman pleaded guilty Thursday to mail fraud for a scheme to use a seafood restaurant’s employee records to file false Deepwater Horizon settlement claims.
Yvette Kocik, 43, of Lake Charles, pleaded guilty before U.S. District Judge Patricia Minaldi to one count of mail fraud. According to the guilty plea, Kocik approached current and former employees of Steamboat Bill’s seafood restaurant of Lake Charles asking them to use their employee documents so she could file claims on their behalf as part of the Deepwater Horizon BP spill of April 20, 2010. Kocik’s mother owns Steamboat Bill’s, and Kocik performs bookkeeping services for the company. She used the employee documents to fill out forms mailed to the Gulf Coast Claims Facility stating they lost earnings and work hours because of the Deepwater Horizon Oil Spill when they had not. She kept a portion of the proceeds awarded to the employees. The employees received $104,655 for more than 10 claims filed in the course of the scheme, which took place beginning in 2010 to December of 2013.
Kocik faces up to 20 years in prison, one to three years supervised release, a $250,000 fine and restitution. A sentencing date of October 22, 2015 was set.
The FBI investigated the case. Assistant U.S. Attorneys Kelly P. Uebinger and Robert F. Moore are prosecuting the case.
Lake Charles man pleads guilty to wire fraud in 5.8 million Ponzi schemeRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Lake Charles man pleaded guilty Thursday to wire fraud in connection with a Ponzi scheme used to defraud investors out of more than $5.8 million.
John Steven Blount, 54, of Lake Charles, pleaded guilty before U.S. District Judge Patricia Minaldi to one count of wire fraud. According to the guilty plea, the Financial Industry Regulatory Authority (FINRA) barred Blount from working as an investment advisor in December of 2003. In spite of this prohibition, Blount resumed work illegally as an investment adviser and securities broker from June of 2007 to December of 2014. During that time, he used his company, Professional Consultants LLC, to operate a Ponzi scheme that defrauded at least 73 investors out of approximately $5.8 million. Blount would offer investments in fictitious companies, bonds and IRAs that promised to pay a high rate of return on those investments. Instead of investing the money, Blount transferred the payments into his own bank accounts for his personal use and to support his other business interests.
In order to avoid detection and continue defrauding investors, Blount emailed investors false account statements that purported to show the value of their investments. As necessary, Blount would also provide his victims with monetary payments, which Blount falsely represented to be interest payments or principal withdrawals from the investments. In fact, these “lulling payments” were actually investments Blount received from other victims of the Ponzi scheme. Over the course of the scheme, Blount paid $1,743,198.84 “lulling payments” to investors.
The victims of Blount’s scheme were primarily retirees residing along the Louisiana and Texas Gulf Coast who invested large portions of their retirement savings in Blount’s scheme. Blount recruited his victims through his website, through his own personal and family relationships, and through his involvement in various Lake Charles area charities, including his role as a board member of Moss Bluff Buddy Ball Sports – a 501(c)(3) organization that provides disabled children the opportunity to play sports at no cost to their families.
“Mr. Blount targeted some of the most vulnerable members of our society,” Finley stated. “He has admitted to convincing dozens of retired Gulf Coast residents to invest their life savings or retirement in his Ponzi scheme. He perpetrated his get-rich-quick schemes to circumvent the law and defraud retired residents of their hard-earned money.”
Blount faces up to 20 years in prison, three years of supervised release, a $8,390,283.48 fine and restitution. A sentencing date of October 22, 2015 was set.
The FBI and IRS Criminal Investigations investigated the case. Assistant U.S. Attorney David C. Joseph is prosecuting the case.
Kissimmee Man Pleads Guilty to Dealing in Firearms Without A LicenseRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Colin Knight (54, Kissimmee) yesterday pleaded guilty to dealing in firearms without a license. He faces a maximum penalty of five years in federal prison. Knight has also agreed to forfeit 32 firearms that he possessed or acquired during the commission of the offense. A sentencing date has not been set.
According to the plea agreement, between June 23, 2013, and August 22, 2014, Knight and his adult son, Colin Campbell Joseph Knight, collectively sold 113 firearms and made approximately $63,137 from these firearms sales. During this period, neither Knight nor his son had a Federal Firearms License (FFL) authorizing them to lawfully engage in the business of dealing in firearms. In April of 2014, law enforcement agents visited the Knights at their home in Kissimmee and informed them that their firearms activity appeared to be in violation of federal law. The Knights also signed written notices advising them to cease and desist in the business of dealing in firearms until they obtained the appropriate FFL. Despite these warnings, the Knights continued selling firearms without a license to others, including to an individual that had previously been convicted of a felony.
On August 22, 2014, in a parking lot in Orlando, an undercover agent purchased three firearms from Knight. On this same date, other agents executed a federal search warrant at Knight’s Kissimmee residence and recovered 26 different firearms, along with records and bills of sale confirming that the Knights were engaging in the ongoing sale of firearms without licenses. Knight also admitted to agents that he and his son had acted as partners by purchasing firearms and selling them.
On June 24, 2015, Knight’s son was indicted by a federal grand jury and charged with dealing in firearms without a license and selling a firearm to a convicted felon. He was arraigned in federal court on June 25, 2015. An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Justice Department Reaches Settlement in Civil Rights Lawsuit Against Maricopa County, Arizona, and Maricopa County SheriffRead the Press Release
The Department of Justice’s Civil Rights Division announced today that it has reached a partial settlement in its civil rights lawsuit against Maricopa County, Arizona, and Maricopa County Sheriff Joseph M. Arpaio. The settlement resolves the United States’ claims that the Maricopa County Sheriff’s Office (MCSO) conducted unlawful detentions of Hispanics during worksite raids of local businesses in violation of the Fourth and 14th Amendments, and retaliated against critics of Sheriff Arpaio and MCSO in violation of the First Amendment. The parties have filed a joint motion requesting that the federal district court in Arizona approve and agree to enforce the settlement agreement. The parties also reached a separate settlement resolving the United States’ claim that MCSO failed to provide adequate language access for limited English-proficient Hispanics in MCSO jails in violation of Title VI of the Civil Rights Act of 1964.
“The resolution of these claims, with the important safeguards against future constitutional violations included in these agreements, is in the best interests of the people of Maricopa County,” said Deputy Assistant Attorney General Mark Kappelhoff of the Justice Department’s Civil Rights Division. “The Maricopa County Sheriff’s Office changed many of their practices after the commencement of our litigation, and these agreements ensure that progress continues and the Constitutional rights of the people of Maricopa County will be protected for the long term.”
Under the agreements, MCSO will comply with the following measures, ensuring that its activities comport with federal law and the Constitution:
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Before MCSO may conduct any worksite raids, it must first establish a set of written policies and protocols and submit them to the Civil Rights Division for review, to ensure that the worksite raids comply with all applicable laws and constitutional protections. If MCSO conducts a worksite raid, the Civil Rights Division may request any information and documents to determine whether the operation was conducted consistently with federal law and the Constitution.
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MCSO will prohibit retaliation against individuals engaging in First Amendment protected activity, such as public criticism of Sheriff Arpaio or the MCSO.
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MCSO must ensure that limited English-proficient (LEP) Hispanic inmates in MCSO jails have adequate language access and are protected from unlawful, national origin-based discrimination. These measures include:
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Improving MCSO’s policies and practices for identifying LEP inmates;
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Ensuring that LEP inmates have adequate access to language assistance services, such as bilingual staff, telephonic interpretation services and Spanish-language translations of important written policies and postings in the jails; and
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Requiring that all vital announcements in MCSO facilities be made in both English and Spanish; and
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Requiring MCSO to take reasonable steps to ensure that medical staff are informed if an inmate needing medical attention is LEP and requires language assistance.
As part of today’s agreements, if the Civil Rights Division determines that MCSO is not in substantial compliance with any provision of the agreements, it will attempt to first resolve the issue with MCSO; if the Civil Rights Division is unable to cooperatively resolve the compliance issues, however, it may bring appropriate enforcement actions before the federal district court in Arizona.
Today’s agreements resolve the majority of the claims involved in the division’s lawsuit, filed in May 2013, against Sheriff Arpaio and Maricopa County. That lawsuit alleged four patterns or practices of unconstitutional conduct: (1) discriminatory policing against Hispanic persons in MCSO’s saturation patrols, general traffic enforcement and worksite operations targeting Hispanic immigrants, (2) detentions in violation of the Fourth Amendment during MCSO’s worksite raids targeting Hispanic immigrants, (3) failures in the provision of language access to Hispanic LEP jail inmates and (4) retaliatory police action against critics of Sheriff Arpaio and MCSO. Last month, the federal district court of Arizona granted the United States’ motion for partial summary judgment on its discriminatory policing claim, finding that the United States was entitled to judgment on its claims that MCSO had engaged in discrimination against Hispanics in its enforcement of traffic laws. A remedy on that issue is still to be determined by the court. The parties are in ongoing discussions to resolve the remaining claims in the division’s lawsuit.
The agreements, as well as a description of the division’s previous investigation of and litigation against the Maricopa County Sheriff Arpaio and Maricopa County, will be available at: http://www.justice.gov/crt/about/spl/.
Maricopa Settlement Agreement and Attachment A.pdf (1.03 MB)
Maricopa Proposed Order.pdf (23.54 KB)
Maricopa Joint Motion to Approve.pdf (37.86 KB)
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Judge Sentences Drug Smuggler to 300 Months for Scheme Involving International AirportRead the Press Release
PHILADELPHIA - Edwin Fernandez, 37, of Philadelphia, was sentenced today to 300 months in prison for smuggling cocaine into the United States via Philadelphia International Airport. Fernandez pleaded guilty on January 5, 2015 to all six counts of the indictment including conspiracy to import five kilograms or more of cocaine, importation of five kilograms or more of cocaine, attempted importation of five kilograms or more of cocaine, conspiracy to distribute five kilograms or more of cocaine, and two counts of attempted possession with the intent to distribute five kilograms or more of cocaine. In addition to the prison term, U.S. District Court Judge Stewart Dalzell ordered a $5,000 fine, 10 years of supervised release, and a $600 special assessment.
Between December 2011 and July 2012, Fernandez, worked with a Santo Domingo, Dominican Republic drug trafficking organization ("Santo Domingo DTO") to smuggle approximately 150 kilograms of cocaine into the United States through the Philadelphia International Airport. The Philadelphia organization recruited several individuals who worked at US Airways to assist in the operation.
The Santo Domingo DTO employed several individuals, including airport employees in Santo Domingo, to ensure that bags filled with kilograms of cocaine were safely loaded aboard commercial airplanes destined for Philadelphia, PA. After the bags were safely loaded onto the plane in Santo Domingo, members of the Santo Domingo DTO alerted Fernandez who then notified the recruits to assist in the offloading of the bags at the Philadelphia Airport. Once the plane arrived in Philadelphia, the recruited US Airways employees would offload the baggage from the plane and divert the bags with the drugs onto domestic baggage claim belts, rather than the international baggage claim belts. This avoided inspection by United States Customs and Border Protection officials. Fernandez then arranged for those bags to be retrieved from domestic baggage claim belts for distribution to domestic drug organizations.
The case was investigated by Homeland Security Investigations with assistance from U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorneys Maureen McCartney and Kishan Nair.
Jefferson Hills Man Sentenced to 14 Years in Federal Prison for Distributing Child PornographyRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 14 years imprisonment, followed by 15 years of supervised release, on his conviction of distribution of child pornography, United States Attorney David J. Hickton announced today.
Senior United States District Judge Terrence F. McVerry imposed the sentence on Michael Canovali, 50, of Jefferson Hills, Pa.
According to information presented to the court, Canovali was detected distributing images of child pornography. Canovali’s sentence was enhanced because he was found to have engaged in a pattern of sexual activity involving an actual child victim.
Assistant United States Attorney Soo C. Song prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Indiana County District Attorney’s Office, together with Federal Bureau of Investigation for the investigation leading to the successful prosecution of Canovali.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jefferson City Man Indicted for Producing Child Porn, Enticing a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was indicted by a federal grand jury today for producing child pornography and for enticing a minor to engage in illicit sex.
Andrew C. Clayton, 37, of Jefferson City, was charged in a three-count indictment returned by a federal grand jury in Jefferson City.
Today’s indictment alleges that Clayton used a minor to produce child pornography on Dec. 18, 2014 and on Dec. 20, 2014. Clayton is also charged with enticing a minor to engage in illegal sexual activity in March 2015.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, the Cole County, Mo., Sheriff’s Department, the Boone County, Mo., Sheriff’s Department Cyber Crimes Task Force and the Missouri State Technical Assistance Team.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictment Unsealed Charging Five with Child Sex Trafficking in Oklahoma CityRead the Press Release
Oklahoma City, Oklahoma – A federal indictment was unsealed today charging TONYA GUM, TRUNG DUONG, WILLIAM BAKER, RUSSELL EHRENS, and CURTIS ANTHONY with child sex trafficking and conspiracy to commit child sex trafficking, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Defendants were indicted by a federal grand jury on June 16, 2015. The indictment alleges that in October 2014, Ms. Gum, who goes by the name "Carmen," and others operated an escort service that provided females, including 14- and 15-year-old juveniles, to men for prostitution. Mr. Duong, Mr. Baker, Mr. Ehrens, and Mr. Anthony are men who are alleged to have obtained juvenile females for prostitution dates by contacting Ms. Gum.
The indictment alleges that Ms. Gum arranged "dates" for Mr. Duong and Mr. Baker with a 14-year-old girl at their respective residences in October 2014. After each date, the 14-year-old was driven to deliver personally a portion of the proceeds of the commercial sex act to Ms. Gum. The indictment alleges Ms. Gum provided Mr. Anthony with 14- and 15-year-old juveniles in late October 2014. Both girls took off their clothes for Mr. Anthony, and he completed a commercial sex act with the 15-year-old girl. According to court records, Ms. Gum arranged for a 14-year-old girl to go to the residence of Mr. Ehrens on October 15, 2014. After the commercial sex transaction was completed, the girl then delivered the proceeds of the commercial sex transaction with Mr. Ehrens to Ms. Gum.
The indictment was unsealed today after Ms. Gum, Mr. Duong, Mr. Baker, and Mr. Anthony were arrested at their homes yesterday. For child sex trafficking, each of the charged defendants faces a mandatory minimum of ten years and up to life in prison and a fine of $250,000. For conspiracy to commit child sex trafficking, each of the charged defendants faces up to life in prison and a fine of $250,000. Further, the indictment seeks forfeiture from each defendant, including the residences at which the “dates” took place.
This case is the result of an investigation by the Department of Homeland Security and the Oklahoma Bureau of Narcotics Human Trafficking Division. The case is being prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and Julia E. Barry.
Reference is made to the indictment and other public filings for further information. 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.
Idaho Falls Man Pleads Guilty to Federal Drug Related ChargesRead the Press Release
POCATELLO – Gerardo Botello, of Idaho Falls, Idaho, pleaded guilty today in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement on May 23, 2011, an undercover officer met with Botello at his residence in Idaho Falls, Idaho. At that meeting the undercover officer purchased 53.7 grams of actual methamphetamine from Botello.
Botello’s charge is punishable by ten years to life in prison, a maximum fine of ten million dollars, and at least five years of supervised release.
Sentencing is set for October 21, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led jointly by the Idaho State Police and the Federal Bureau of Investigations, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bureau of Alcohol Tobacco and Firearms (ATF), Bonneville County Sherriff’s Office, Idaho Falls Police Department, Idaho State Police, and the Bonneville County Prosecutor’s Office.
The OCDETF program is a federal multi agency, multi jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Gladstone Man, Woman Charged with Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Gladstone, Mo., man and woman were charged in federal court today with illegally possessing firearms.
Michael Bellinghausen, 32, and his girlfriend, Tara Childress, 30, both of Gladstone, were charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s criminal complaint alleges that Bellinghausen and Childress, unlawful users of controlled substances, aided and abetted each other to possess firearms.
According to an affidavit filed in support of today’s criminal complaint, law enforcement officers were investigating the robberies of several Walgreens pharmacies in which oxycodone was stolen. Officers executed a search warrant at the residence shared by Bellinghausen and Childress on Thursday, July 16, 2015. Among the items seized during the search was heroin, methamphetamine, drug paraphernalia and packaging materials, computers and a printer with specialty paper used to print medical prescriptions, two combat-style shotguns, three handguns and ammunition.
During a review of Bellinghausen’s social media accounts that are open and accessible to the general public, investigators found pictures of Bellinghausen and Childress posing with various firearms, including assault weapons and one handgun that appeared to be fitted with a sound suppressor. One such photograph is labeled with the word “HITMAN” as Bellinghausen poses menacingly with a pistol in each hand.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Charles E. Ambrose, Jr. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Independence, Mo., Police Department.
Former United States Congressman Michael Grimm Sentenced to Eight Months for Tax FraudRead the Press Release
Earlier today in federal court in Brooklyn, former United States Congressman Michael Grimm was sentenced to a term of incarceration of eight months of incarceration in connection with his conviction for aiding and assisting the preparation of a false tax return. Grimm served as a member of the United States House of Representatives representing New York’s 11th Congressional District, which includes the borough of Staten Island and parts of the borough of Brooklyn, from January 2011 to January 2015. Grimm was sentenced by the Honorable Pamela K. Chen, United States District Judge, Eastern District of New York. The Court also sentenced the defendant to 200 hours of community service.[1]
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Richard Weber, Chief, IRS- Criminal Investigation.
“This prosecution and sentence should be a reminder to those in positions of trust that we and our partners in the FBI and IRS will vigorously pursue whomever commits fraud,” said Acting U.S. Attorney Currie. Mr. Currie expressed his grateful appreciation to the Public Integrity Section of Department of Justice, the Northern Criminal Enforcement Section of the Tax Division of the Department of Justice, the New York State Insurance Fund, the New York State Department of Taxation and Finance, and the New York State Department of Labor for their assistance in the investigation.
FBI Assistant Director-in-Charge Rodriguez stated, “Grimm didn’t serve his community with honor; he instead engaged in criminal activity to the detriment of the public trust. Today’s sentence should send a message that this type of behavior will not be tolerated, especially when public officials break the law. The FBI and our partners at the IRS will continue our efforts to identify fraudulent practices carried out by elected representatives and free the system from the consequences of their actions.”
“Former Congressman Grimm made a conscious decision to break the law and benefit personally by underreporting $900,000 in restaurant gross receipts and lowering payroll taxes through 'off-the-book' payments, then lying under oath to conceal his criminal activity,” said IRS-Criminal Investigation Chief Weber. “Tax crimes are not victimless crimes and Grimm’s actions harmed the very citizens he was elected to serve. We expect all taxpayers to follow the law—whether you are a business owner, individual, or elected official—we all must play by the same rules.”
In connection with his guilty plea on December 23, 2014, Grimm entered into a stipulation of facts acknowledging the scope of his criminal conduct. As part of that stipulation of facts, Grimm admitted that:
- From 2007 through 2009, Grimm was a member in Healthalicious, a Manhattan restaurant. During that time period, Grimm oversaw the day-to-day operations of the restaurant, which included the reporting and distribution of the restaurant’s payroll.
- Grimm under-reported the true amount that Healthalicious earned, using a portion of those unreported receipts to pay the restaurant’s workers “off the books” in cash. With Grimm’s knowledge, the restaurant employed those who were not lawfully admitted to the United States and who were not authorized to work in this country.
- In total, Grimm concealed over $900,000 in Healthalicious’ gross receipts from the accountant who prepared and filed the restaurant’s tax returns. That accountant used the false information provided by Grimm to prepare and file false federal and state tax returns for Healthalicious.
- Grimm also failed to report the “off the books” cash wages he was paying to Healthalicious workers, which resulted in the restaurant paying lower federal and state payroll taxes. Some Healthalicious employees received at least half of their wages in cash, while other workers were paid entirely in cash. Grimm tracked these payments in electronic spreadsheets, but failed to provide accurate information about the restaurant’s payroll to the payroll processing companies employed by the restaurant. As a result, Grimm caused the payroll processing companies to report to the IRS and the NYS Tax Department less than half of the wages Healthalicious actually paid its employees.
- Additionally, Grimm under-reported Healthalicious’ payroll to the New York State Insurance Fund (“NYSIF”), lowering the monthly workers’ compensation premium the restaurant paid to NYSIF.
- As part of his scheme, Grimm caused numerous false documents to be filed with federal and state tax authorities between 2007 and 2010. In total, Grimm’s conduct caused federal and New York State tax and NYSIF premium losses between $80,000 and $200,000.
- While a Member of Congress in January 2013, Grimm was deposed under oath by the attorney of a former employee in connection with a civil lawsuit relating to the labor practices at Healthalicious in which Grimm was a defendant. The lawsuit was pending in the United States District Court for the Southern District of New York. Grimm admitted to testifying during the deposition to things that, at the time, he knew to be false. Specifically, Grimm testified during the deposition that Healthalicious employees had not been paid in cash, when he knew that restaurant employees had in fact been paid “off the books” in cash. Similarly, Grimm testified that, to the extent he used email in operating Healthalicious, he used a Yahoo account to which he no longer had access. Grimm also admitted that, at the time of the deposition, he in fact had access to an AOL account which he had used for Healthalicious related business and which contained many emails related to the restaurant.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys James Gatta and Nathan Reilly are in charge of the prosecution.
The Defendant:
MICHAEL GRIMM
Age: 45
Staten Island, New YorkE.D.N.Y. Docket No. 14-CR-248 (PKC)
[1]In addition to the term of incarceration, the Court ordered Grimm to pay restitution to the Internal Revenue Service (IRS), the New York State Department of Taxation and Finance, and the New York State Insurance Fund (NYSIF) in a total amount to be determined after sentencing.
Former U.S. Marine Charged with Stealing Identities of Fellow Service Personnel in Scheme to Defraud Navy Federal Credit Union of More Than $138,000Read the Press Release
CHICAGO — A former United States Marine from Calumet City stole the identities of several fellow Marines and used their information to illegally procure more than $138,000 from Navy Federal Credit Union, according to an indictment returned this week in federal court in Chicago.
While serving in Combat Logistics Regiment 3 at Camp Foster in Okinawa, Japan, LEONARD E. PARKER JR. obtained a Marine roster containing the personal information of several fellow Marines stationed at the camp, according to the indictment. After returning to the United States, Parker and a co-defendant, DONTREAL S. EVANS, allegedly used the Marines’ information to transfer approximately $138,798 from the Marines’ accounts into bank accounts belonging to individuals Parker and Evans had recruited into the scheme.
Parker and Evans offered to pay those individuals to allow Parker and Evans to control and access the accounts, the indictment states. The pair later withdrew funds and made purchases from the accounts they controlled, and kept the proceeds from the scheme, according to the indictment. Parker also allegedly filed false tax returns in the names of Marines whose personal information was on the roster.
The indictment, which was returned Thursday, charged Parker, 24, of Calumet City, with five counts of financial institution fraud; one count of aggravated identity theft; and four counts of filing false claims against the United States. Evans, 21, of Lansing, was charged in the indictment with three counts of financial institution fraud. The defendants’ arraignment in U.S. District Court in Chicago has not yet been scheduled.
Each count of financial institution fraud carries a maximum sentence of 30 years in prison, a $1 million fine and mandatory restitution. If convicted of aggravated identity theft, Parker also would face a mandatory, consecutive term of two years in prison. Each count of filing false claims carries a maximum sentence of five years in prison, a $250,000 fine, and mandatory restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Stephen Boyd, Special Agent in Charge of the Internal Revenue Service Criminal Investigation in Chicago.
The investigation is ongoing.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Special Assistant U.S. Attorney Heidi Manschreck.
Indictment
Former Loan Officer Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – JOSEPH BROGAN was sentenced to 14 months in prison on multiple fraud charges related to a scheme involving applications for home loans.
According to court documents, Joseph Brogan was employed as a loan officer for USA Mortgage, Inc. where he handled both conventional mortgages and FHA loans. Michael Wallis owned and operated a company known as Missouri Builders and Home Remodeling (Missouri Builders), which performed interior construction and remodeling work on houses. Brogan, Wallis and others conspired to obtain loan funds by making false and fraudulent representations on home loan documents, including misrepresenting the source of down payments and misrepresenting remodeling expenses on HUD-1 forms and related loan documents. Brogan admitted that on at least one occasion he provided $8,000 in funds toward a down payment, while knowing the loan forms and supporting documents falsely represented that the funds came from the nominal purchaser or a relative of the nominal purchaser. Wallis’ company, Missouri Builders, received disbursements of loan funds based on the false HUD-1 forms and based on false invoices for remodeling expenses. Wallis then paid Brogan from the illegally obtained loan funds. Over the course of the conspiracy, Brogan received approximately $94,948 in payments from Wallis.
Brogan, St. Louis, Missouri, pled guilty in January before U.S. District Judge Audrey G. Fleissig to one felony count of conspiracy to commit bank fraud and two felony counts of bank fraud. He was also ordered to pay more than $350,000 in restitution.
This case was investigated by the Department of Housing and Urban Development-Office of Inspector General, the Federal Housing Finance Agency-Office of Inspector General and the Postal Inspection Service. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
Former IRS Employee and Three Others Sentenced for Conspiracy to Commit Mail FraudRead the Press Release
PENSACOLA, FLORIDA – Four Pensacola residents, including a former IRS tax examiner, have been sentenced to prison for conspiring to file false claims for payment in connection with the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. The sentences were announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
On June 30, 2015, Rosa M. Bonner, 52, and Ariyanna S. Lampley, 33, were sentenced to 27 months and 48 months in prison respectively. Both pled guilty on April 8, 2015. On July 16, 2015, Jimmie A. McCorvey, 41, and Marcia D. McCorvey, 42, were sentenced to 72 months and 12 months and one day in prison respectively. Jimmie McCorvey pled guilty on April 30, 2015, and Marcia McCorvey pled guilty on May 7, 2015.
During their guilty pleas, the defendants admitted their participation in a conspiracy to commit mail fraud. The conspiracy involved the filing of false claims with the Gulf Coast Claims Facility (“GCCF”) alleging lost income as a result of the 2010 Deepwater Horizon spill. Between 2010 and 2012, the defendants agreed to have Jimmie McCorvey file false GCCF claims in their names and other names provided by Lampley, seeking more than $327,000 in payments for alleged lost earnings and profits as a result of the spill. Jimmie McCorvey fraudulently used Pensacola addresses to indicate that all claimants lived and worked in Pensacola. As a result of these false claims, GCCF paid $95,200 to the defendants.
Jimmie McCorvey, who was an IRS employee at the time, also admitted to conspiring with Lampley and others to prepare and file approximately 25 fraudulent federal income tax returns between 2009 and 2011, resulting in the issuance of more than $62,000 in tax refund checks. The fraudulently obtained tax refund checks were deposited in bank accounts controlled by Lampley, who paid Jimmie McCorvey a portion of each check. Jimmie McCorvey also pled guilty to aggravated identity theft for fraudulently using other people’s identities in both schemes.
This case resulted from investigations by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, and was prosecuted by Assistant United States Attorney Alicia Kim.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Former Health Care Center Nursing Supervisor Sentenced for Selling Fentanyl and Other Pain KillersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul announced today that Catherine Vitello, 42, of Elma, NY, who was convicted of possession with intent to distribute and distribution of hydrocodone and fentanyl, was sentenced to three years probation to include one year home detention by U.S. District Judge Richard J. Arcara.“As this case demonstrates, high potency and highly dangerous prescription drugs can enter the stream of illegal commerce in a number of ways, including from those in the healing professions,” said U.S. Attorney Hochul. “This Office will continue to prosecute all who traffic in such sometimes lethal substances, regardless of title or position.”
Assistant U.S. Attorney John M. Alsup, who handled the case, stated that the defendant was the Director of Nursing at the St. Catherine Laboure Health Care Center in Buffalo. Vitello sold un-used prescription drugs from her office. These drugs were prescribed for patients but were no longer needed for various reasons, including the death of the patient in some cases. The prescription narcotics included hydrocodone and fentanyl. On at least two separate occasions in October 2013, the defendant sold hydrocodone and fentanyl to a confidential source working with the Drug Enforcement Administration.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Office, the Lackawanna Police Department, under the direction of Chief James Michel, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
Former Gates Mills postmaster charged with stealing more than $55,000Read the Press Release
The former postmaster of the Gates Mills Post Office was charged today with theft of property used by the U.S. Postal Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Monica Weyler, Special Agent in Charge of the U.S. Postal Service -- Office of Inspector General, Eastern Area Field Office.
Ann Apana, 66, of Maple Heights, Ohio, was charged by criminal information with a single count of theft of property used by the U.S. Postal Service.
The information charges that from at least June 12, 2009 until June 15, 2014, as part of a continuing course of conduct, Apana stole approximately $38,741.42 in money and merchandise from the Postal Service and made approximately $18,341.08 in unauthorized purchases of postage using customers’ credit card information.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Miranda E. Dugi following an investigation by special agents of the U.S. Postal Service -- Office of Inspector General.
Former Buffalo Employee Sentenced for Theft of Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Tasha Collier, 39, of Buffalo, NY, who was convicted of theft and conversion concerning programs receiving federal funds, was sentenced to three years probation and directed to make restitution to the City of Buffalo in the amount of $22,292.50 by Chief U.S. District Judge Frank P. Geraci, Jr.Assistant U.S. Attorney Joseph M. Guerra, who handled the case, stated that the defendant was employed as a clerk in the Licensing Department of the City of Buffalo between July 2013 and August 25, 2014. As part of her duties as a clerk, Collier was responsible for collecting payments in cash and by check for licenses issued by the City of Buffalo. Between September 2013 and August 2014, the defendant stole approximately $22,000 in cash, funds that were supposed to be remitted to the City Treasury Department.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Five People Sentenced to Federal Prison for Meth-Distribution ConspiracyRead the Press Release
Five men have been sentenced to federal prison for their roles in a methamphetamine distribution conspiracy.
Billy Lee Jaime Huerta, age 31, of Mason City, Iowa, received his prison term after a December 10, 2014, guilty plea; David Luiz Lee Huerta, age 27, of Mason City, Iowa, received her prison term after a March 25, 2015, guilty plea, Steven Andrew Davis, age 32, of Stockton, California, received his prison term after a January 26, 2015, guilty plea, Michael Angelo Sanchez Moreno, age 25, of Stockton, California, received his prison term after a December 3, 2014, guilty plea, and Francisco Mora-Martinez, age 29, of Stockton, California, received his prison term after a February 2, 2015, guilty plea. Billy Huerta, David Huerta, Davis, Moreno, and Mora-Martinez each pled guilty to conspiracy to distribute methamphetamine. David Huerta and Steven Davis each also pled to Distributing a Controlled Substance. Billy Huerta was previously convicted of a felony drug offense in Cerro Gordo County, on July 7, 2008.
Information provided by the United States at the sentencing’s and change of plea hearings show the defendants were involved in a conspiracy in which David Huerta and Steven Davis were bringing from California and/or mailing pound quantities of methamphetamine to the Mason City area and along with Billy Huerta and Michael Moreno reselling it to others. During his involvement in the conspiracy, Francisco Mora-Martinez was responsible for facilitating the distribution of more than 150 grams of pure methamphetamine. The conspiracy lasted from August 2010 to October 2014, in the Mason City and Clear Lake, Iowa area.
Billy Huerta, David Huerta, Davis, Mora-Martinez, and Moreno, were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Billy Huerta was sentenced to 240 months’ imprisonment, David Huerta was sentenced to 135 months’ imprisonment, Davis was sentenced to 121 months’ imprisonment, and Mora-Martinez and Moreno were each sentenced to 120 months’ imprisonment. Billy Huerta must serve a 10-year term of supervised release after the prison term. David Huerta, Davis, Mora-Martinez, and Moreno must each serve a 5-year term of supervised release after prison. David Huerta, Steven Davis, and Michael Moreno, were each ordered to pay a $200 special assessment. Billy Huerta and Mora-Martinez were each ordered to pay a $100 special assessment. There is no parole in the federal system.
All five are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, Clear Lake Police Department, and Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 14-3054.
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