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8 September 2015
Dallas County Man Sentenced to 144 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — A 27-year-old Irving, Texas, man, Frank Olivarez, Jr., who pleaded guilty in December 2014 to one count of transporting and shipping child pornography, was sentenced this afternoon by U.S. District Judge Sam A. Lindsay to 144 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, in February 2014, a task force officer with the FBI, who was conducting an investigation into the sharing of child pornography on a BitTorrent file-sharing network, identified a computer that was sharing files containing child pornography. The task force officer downloaded 695 image and video files from Olivarez, 648 of which were child pornography.
The FBI then secured a search warrant that they executed at Olivarez’s home. Olivarez admitted using BitTorrent software to download and view child pornography. Agents seized computer media from the home and further forensic analysis revealed that 33 images depicted the sexual exploitation of infants and toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI’s Child Exploitation Task Force investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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City of Tucson Receives over $300,000 in Federal Grant Money to Promote Law Enforcement EffortsRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $339,277 in additional grant funds have been made available to the City of Tucson in support of law enforcement programs, which include personnel, overtime, and equipment, with the goal of reducing crime and increasing officer and public safety. The grant funds were awarded by the Bureau of Justice Assistance (“BJA”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
Additional information about BJA and its programs is available at: https://www.bja.gov/Default.aspx
Information about OJP and its programs can be found at:http://www.ojp.usdoj.gov.
RELEASE NUMBER: 2015-068_CITY_OF_TUCSON (2015-DJ-BX-0945)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Caldwell Gang Member Sentenced to 42 Months in Prison for Distributing DrugsRead the Press Release
BOISE –David Gregory Mendoza, 37, of Caldwell, Idaho, was sentenced today to 42 months in prison for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Mendoza to serve five years of supervised release following his release from prison. Mendoza pleaded guilty on June 9, 2015.
According to the plea agreement and information presented in court, Mendoza admitted to selling approximately one-eighth of an ounce of methamphetamine on September 29, 2014, to a person who was assisting law enforcement as a confidential informant. Mendoza is a documented gang member and during the court hearing today, Judge Lodge ordered Mendoza to have no contact with gang members upon release from prison.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Bridgeport Man Charged with Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Colonel Brian F. Meraviglia of the Connecticut State Police and Easton Police Chief Timothy Shaw announced that KYLE NAVIN, 27, of Bridgeport, was arrested today on a federal criminal complaint charging him with possession of a firearm by an individual who is an unlawful user of, or addicted to, any controlled substance.
As alleged in the criminal complaint, on August 7, 2015, federal, state and local law enforcement agencies began investigating the disappearance of NAVIN’s parents, Jeffrey and Jeanette Navin of Easton. On August 13, 2015, investigators conducted a court-authorized search of NAVIN’s Bridgeport residence and seized two firearms and numerous rounds of ammunition from NAVIN’s bedroom. On August 19, 2015, law enforcement conducted a second search of NAVIN’s residence and located and seized items indicative of substance abuse, including numerous heroin brand-stamped glassine baggies with heroin residue, hypodermic needles, empty prescription bottles for oxycodone and prescription bottles containing other controlled substances. Investigators also recovered from NAVIN’s residence a receipt from a firearms shooting range that was issued on August 5, 2015.
The complaint further alleges that investigators conducted a court-authorized search of NAVIN’s cellphone and reviewed numerous text messages that discuss NAVIN’s use of heroin, oxycodone and Xanax.
The charge of possession of a firearm by an individual who is an unlawful user of, or addicted to, any controlled substance carries a maximum term of imprisonment of 10 years.
NAVIN was arrested this afternoon at this residence. He appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and is currently detained.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the FBI Bridgeport Violent Crimes Task Force, Connecticut State Police Western District Major Crime Squad and Easton Police Department, with the assistance of the State’s Attorney’s Office for the Fairfield Judicial District and the Westport, Weston and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Tracy Dayton.
Bookie Sentenced for Illegal Gambling and Money LaunderingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Paul Borrelli, 70, of Rochester, NY, who was convicted of illegal gambling and money laundering, was sentenced to three years probation and eight months home detention by Chief U.S. District Judge Frank P. Geraci, Jr. The defendant must also pay a $1,200,000 money judgment and forfeit approximately $3,000,000 in properties, cash and bank accounts.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Borelli conducted an illegal gambling business with co-defendants Mark Ruff and his brother Joseph Ruff. The gambling operation involved sports betting through multiple offshore internet gambling websites and involved at least $76 million in gross wagers. Specifically, between January 13, 2012, and April 25, 2014, Borrelli deposited proceeds of the illegal internet gambling business into a Bank of America account.
Paul Ruff was convicted and sentenced to nine years in prison. Joseph Ruff was also convicted and sentenced to 41 months in prison. Former professional hockey player Nathan Paetsch was also convicted in connection with the gambling ring and sentenced to five years probation to include eight months home detention. All defendants have been convicted and sentenced.
Today’s sentencing is the culmination of an investigation conducted by the Organized Crime Drug Enforcement Task Force, which included the Federal Bureau of Investigation, Internal Revenue Service, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, Rochester Police Department, under the direction of Chief Michael Ciminelli, Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, Greece Police Department, under the direction of Chief Patrick Phelan, the Webster Police Department, under the direction of Acting Chief Joseph Rieger, and Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.Skipper will be sentenced on December 18, 2015 at 1:00 p.m. before Judge Arcara.
Banker Sent to Prison for Taking More Than $1 Million in BribesRead the Press Release
Assistant U.S. Attorney Emily W. Allen (619) 546-9738
NEWS RELEASE SUMMARY – September 8, 2015
SAN DIEGO – Robert Moreno, a GMAC banker, was sentenced today by U.S. District Judge Roger T. Benitez to 37 months in prison for his role in a widespread commercial bribery and tax evasion scheme.
Moreno admitted accepting more than $1 million in bribes while he worked for GMAC in return for rigging bids for secondary market mortgages in favor of his preferred customers. At the sentencing hearing, Judge Benitez described Moreno as “the kingpin in this whole nasty affair,” and noted that the bribe payments had an adverse economic impact on the market. He ordered Moreno to pay back $1,143,560 in restitution to GMAC and an additional $140,941 to the IRS.
According to court records, Moreno admitted that between December 2011 and July 2013, he used his position and influence at GMAC to ensure that his preferred customers, including San Diego businessman Israel Hechter and Woodland Hills businessman Ben Keisari, won their bids to purchase mortgage loans that were being resold by GMAC. In order to ensure Hechter’s and Keisari’s bids won, Moreno would alter other bids, reject bids, and erase or ignore bids from qualified competitors, so that his corrupt customers would appear to be the most qualified bidders. Moreno also provided Hechter and Keisari with “inside information” about prices and competing bids, giving them a leg up in the bidding process and ensuring that they won the most lucrative deals.
In exchange, Hechter and Keisari, and others who worked for them, delivered bribe payments to Moreno totaling more than $1 million. Initially, Moreno arranged to be paid by personal check or in hand-delivered cash payments in order to conceal the bribes and avoid reporting them to the IRS. For example, Hechter recruited his father to deliver hundreds of thousands of dollars in cash bribes to Moreno on New York City street corners and at a car wash. In a similar vein, Moreno would meet Keisari in Las Vegas hotels and other places to arrange in-person deliveries of tens of thousands of dollars in cash. Moreno never disclosed the income on his 2011 and 2012 tax returns.
As the amount of the bribe payments increased, Moreno revised the plan to create a “cover story” that could be used to explain his illegal activity. He entered into sham “consulting” agreements with Hechter and Keisari, to make it appear as if the bribes were legitimate fees paid for services unrelated to Moreno’s work at GMAC. Using a business bank account opened for the purpose of receiving these bogus “consulting” payments, Moreno took in $550,000 in bribes. When later confronted by federal agents, Moreno stuck to the cover story and claimed that the bribe payments were consulting fees for legitimate work. Eventually, in October 2014, Moreno pleaded guilty and admitted his role the bribery scheme.
Including Moreno, over half a dozen defendants have been convicted for their roles in this bank bribery ring. Hechter, the owner of San Diego-based mortgage investment firms Ocean 18, LLC, and Note Tracker Corporation, pleaded guilty in September 2014. As part of his guilty plea, he admitted that he paid bribes to Moreno and to Lynda Sanabria, another banker who sold mortgages on the secondary market on behalf of JP Morgan Chase Bank. Sanabria also pleaded guilty, and admitted receiving hundreds of thousands of dollars in bribe payments from Hechter in return for her influence over Chase’s mortgage sales.
Zeev Hechter, Amir Hechter, and Jack Prober also pleaded guilty and admitted that they participated in the bribery on behalf of Ocean 18, LLC. Both Prober and Amir Hechter admitted writing personal checks to Moreno and Sanabria in order to assist the bankers in evading taxes on the illegal income. Zeev Hechter admitted hand-delivering approximately $330,000 in cash to Moreno. Ben Keisari, who operated the business BGK Investments out of Woodland Hills, California, also pleaded guilty to participating in the bribery scheme. Keisari admitted paying more than $350,000 in bribes to Moreno in return for Moreno’s help ensuring that BGK Investments won its bids to purchase mortgage notes from GMAC.
Moreno is the fifth defendant in this bribery ring to be sentenced. On March 2, 2015, Judge Benitez sentenced Zeev Hechter to six months in custody and ordered him to pay a $50,000 fine and restitution of $165,000. On May 11, 2015, Judge Benitez sentenced Amir Hechter to 18 months in prison for his role in the offense, and ordered him to pay a $25,000 fine and restitution of $63,474. On June 1, 2015, Judge Benitez sentenced Lynda Sanabria to six months in prison followed by six months of home confinement, and ordered her to pay $40,420 in restitution to the IRS. And on August 28, 2015, Judge Benitez sentenced Israel Hechter to 18 months in custody, along with restitution of nearly $400,000.
Jack Prober and Ben Keisari are both scheduled to be sentenced on October 18, 2015, at 9:00 am. Each of these defendants will also be sentenced by Judge Benitez.
U.S. Attorney Duffy praised the coordinated efforts of the Federal Bureau of Investigation, the Federal Housing Finance Agency – Office of Inspector General, and Internal Revenue Service, Criminal Investigation to dismantle Moreno’s bank bribery ring.
DEFENDANT SENTENCED TODAY:
Robert Moreno, 14CR2277-BEN Age: 42 Tempe, AZ
ADDITIONAL DEFENDANTS:
Israel Hechter, 14CR2703-BEN Age: 47 San Diego, CA
Amir Hechter, 14CR2701-BEN Age: 42 San Diego, CA
Jack Prober, 14CR2704-BEN Age: 56 La Jolla, CA
Zeev Hechter, 14CR2702-BEN Age: 68 Aventura, FL
Lynda Sanabria, 14CR2980-BEN Age: 51 Rockwall, TX
John Crisci, 14CR3269-BEN Age: 33 San Diego, CA
Ben Keisari, 15CR0550-BEN Age: 31 Woodland Hills, CA
CHARGES
Conspiracy to commit bank bribery and tax evasion, in violation of 18 U.S.C. § 371.
Maximum Penalties: 5 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.
AGENCIES
Federal Bureau of Investigation
Federal Housing Finance Agency – Office of Inspector General
Internal Revenue Service, Criminal Investigation
A Second Columbia Man Pleads Guilty to Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Columbia, Mo., men have pleaded guilty to their roles in a conspiracy to distribute methamphetamine after law enforcement officers seized several pounds of methamphetamine.
Ryan Roger Ellingboe, 40, of Columbia, pleaded guilty today before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a June 15, 2015, federal indictment. Co-defendant Shane Alan Callahan, 30, of Columbia, pleaded guilty to the same charge on Sept. 3, 2015.
Ellingboe and Callahan each pleaded guilty to participating in a conspiracy to distribute methamphetamine in Boone County and elsewhere from April 2015 to May 14, 2015.
A deputy with the St. Charles County, Mo., Sheriff’s Department stopped a Cadillac Escalade driven by Ellingboe for a traffic violation on May 14, 2015. Callahan was a passenger in the vehicle. The deputy smelled burnt marijuana upon approaching the vehicle and conducted a search of the vehicle. The deputy found a vacuum-sealed bag that contained approximately one pound of methamphetamine behind the glove box.
Ellingboe and Callahan told law enforcement officers they had traveled from Columbia that morning to meet a customer in St. Charles, Mo., who wanted to purchase the methamphetamine. Callahan stated that he was brokering the methamphetamine transaction between Ellingboe and another individual. According to today’s plea agreement, Ellingboe explained to Callahan that he had access to a pound of methamphetamine and asked Callahan if he knew of a customer. Callahan located a customer in St. Charles who wanted to purchase one pound of methamphetamine. When Ellingboe picked up Callahan in Columbia that morning, he was already in possession of the one pound of methamphetamine. Ellingboe and Callahan then began driving to St. Charles to complete the transaction.
Ellingboe told officers he had acquired the methamphetamine from a co-defendant who was staying at the Howard Johnson Inn in Columbia. Law enforcement officers searched the hotel room and found three bags, each containing approximately one pound of methamphetamine, for a total weight of 1.369 kilograms.
According to today’s plea agreement, Ellingboe had planned to return to the hotel room later in the day to pay his co-defendant $8,000 for the methamphetamine that he had taken to sell in St. Charles. That co-defendant also had provided an additional 1.5 pounds of methamphetamine to Ellingboe during a visit to Columbia on April 17-19, 2015, the plea agreement says.
Under federal statutes, Ellingboe and Callahan are each subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10 million. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Larry Miller. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the St. Charles, Mo., Police Department and the St. Charles County, Mo., Sheriff’s Department.
***media Advisory***Read the Press Release
ALBUQUERQUE –The New Mexico U.S. Attorney’s Office is hosting a joint meeting of the U.S. Attorney General’s Native American Issues Subcommittee (NAIS) and U.S. Attorneys’ Tribal Liaisons on Sept. 9 and 10, 2015, in Santa Ana Pueblo.
The NAIS is comprised of 30 U.S. Attorneys from across the United States whose Districts contain Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil, and is responsible for making policy recommendations to the U.S. Attorney General regarding public safety and legal issues that impact tribal communities. Montana U.S. Attorney Michael W. Cotter serves as Chairman of the NAIS and New Mexico U.S. Attorney Damon P. Martinez serves as Vice Chairman.
All U.S. Attorneys’ Offices with Indian Country responsibility have at least one Tribal Liaison to serve as the primary point of contact with tribes in the district. Tribal Liaisons are an important component of the efforts of the U.S. Attorneys’ Offices in Indian Country. The Tribal Liaison position was first established in 1995 and was codified with the passage of the Tribal Law and Order Act. In addition to their duties as prosecutors, Tribal Liaisons often coordinate and train federal and tribal law enforcement agents on the investigation and prosecution of violent crime and sexual abuse cases in Indian country.
While in New Mexico, the NAIS and Tribal Liaisons will meet with representatives from tribes in New Mexico. They also will meet with officials from BIA, Indian Health Services, the U.S. Department of the Interior, and the Justice Department’s Office of Justice Programs and Environmental and Natural Resources Division.
After the joint meeting of the NAIS and Tribal Liaisons, the Tribal Liaisons will participate in a two-day training seminar presented pursuant to the Justice Department’s National Indian Country Training Initiative that provides annual training for Tribal Liaisons covering legal updates as well as best practices for responding to violent crime in Indian Country. The training seminar also will address topics like Special Law Enforcement Commissions for tribal officers, investigation and prosecution of strangulation assaults, and measuring success in sexual assault prosecutions.
The opening session of the meeting of NAIS and Tribal Liaisons on Wednesday, Sept. 9, 2015, will be open to the press and will include welcoming remarks by Montana U.S. Attorney Michael W. Cotter, New Mexico U.S. Attorney Damon P. Martinez, and 1st Lt. Governor Antonio Chewiwi of the Pueblo of Isleta. It also will include remarks by Assistant Secretary of the Interior for Indian Affairs Kevin Washburn on Progress in Justice Services in Indian Country. U.S. Attorney Cotter, U.S. Attorney Martinez, Assistant Secretary Washburn, and other Justice Department officials will be available for interviews at the conclusion of the meeting’s opening session.
WHO: U.S. Attorney Michael W. Cotter for the District of Montana; U.S. Attorney Damon P. Martinez for the District of New Mexico; U.S. Attorney Deborah R. Gilg for Nebraska; Assistant Secretary of the Interior for Indian Affairs Kevin Washburn; Principal Deputy Assistant Attorney General, Sam Hirsch of ENRD
WHAT: Opening session of Joint Meeting of the Native American Issues; Subcommittee of the U.S. Attorney General’s Advisory Committee; and U.S. Attorneys’ Tribal Liaisons
WHEN: WEDNESDAY, SEPT. 9, 2015, 8:30 A.M. – 10:00 A.M.
WHERE: Hyatt Regency Tamaya
1300 Tuyuna Trail
Santa Ana Pueblo, New Mexico 87004
OPEN PRESS
NOTE: All media must present government-issued photo ID (such as driver’s license) as well as valid media credentials. Media may begin to arrive at 8:15 a.m. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-366-1463 or [email protected].
4 September 2015
Zuni Pueblo Man Pleads Guilty to Federal Cocaine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Ocvatius Qualo, 46, of Zuni Pueblo, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a cocaine trafficking charge.
Qualo was arrested in June 2015, on a criminal complaint charging him with possession of cocaine with intent to distribute. Qualo was arrested on tribal charges on May 29, 2015 after a BIA officer found that Qualo was in possession of cocaine during a routine traffic stop on State Highway 53 in Zuni Pueblo in McKinley County, N.M. According to the complaint, Qualo had eight baggies, each of which contained a small amount of cocaine.
Qualo was indicted on June 24, 2015, and charged with possession of cocaine with intent to distribute. During today’s change of plea hearing, Qualo pled guilty to the indictment.
At sentencing, Qualo faces a statutory maximum penalty of 20 years in prison. His sentencing hearing has yet to be scheduled.
This case was investigated by the Northern Agency of the BIA’s Office of Justice Services. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
Wyoming Man Sentenced for Involuntary Manslaughter and Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on September 2, 2015, Dalton Enos, 23, was sentenced in federal court to 46 months imprisonment on one count of involuntary manslaughter and one count of assault resulting in serious bodily injury in connection with Enos driving and crashing a motor vehicle on March 16, 2015 while intoxicated and causing the death of Arlyn Willow, 39, and causing serious injuries to victim M.C., on the Wind River Reservation. Enos was recommended for the residential drug and alcohol treatment program while imprisoned. Following imprisonment, Enos was placed on three years of supervised released and ordered to attend the Mothers Against Drunk Driver’s victim impact panel once monthly and pay a special assessment in addition to other terms and conditions. This case was investigated by the Wyoming Highway Patrol, the Fremont County Coroner’s Office, the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Walter Investment Management Corp. Pays More than $29 Million for the Alleged Submission of False Claims Related to Servicing Reverse Mortgage LoansRead the Press Release
The Justice Department announced today that Walter Investment Management Corp. (WIMC) has agreed to pay $29.63 million to resolve allegations that WIMC, through its subsidiaries, Reverse Mortgage Solution Inc. (RMS), REO Management Solutions LLC and RMS Asset Management Solutions LLC, violated the False Claims Act in connection with their participation in the Department of Housing and Urban Development’s (HUD’s) Home Equity Conversion Mortgages (HECM) program, which insures “reverse” mortgage loans. WIMC, through subsidiaries such as RMS and Green Tree Servicing LLC, provides business support to the residential mortgage industry, including servicing of reverse or forward mortgages on behalf of major financial institutions.
“The Department of Justice is committed to ensuring that those who service HUD-insured reverse mortgages are held accountable for their knowing failure to comply with important HUD requirements,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Schemes such as these undermine an important tool available to older Americans who wish to use a HUD-insured reverse mortgage loan to age in place.”
Reverse mortgage loans allow elderly people to access the equity in their homes. To encourage reverse mortgage loans, HUD insures such loans through a program administered by HUD’s Federal Housing Administration (FHA). Under HUD’s program, a loan becomes due and payable when the home is sold or vacant for more than 12 months or upon the death of the homeowner, whichever comes first. The lender is repaid the amount of the loan, including the costs of servicing the loan and interest that accrues, after a loan becomes due and payable. HUD will reimburse a lender that is unable to recoup the full amount of the loan. In order to claim recoupment, the servicer is required to meet a number of regulatory requirements and deadlines. Failure to meet these requirements and deadlines could result in denial of the insurance claim.
The government alleged that, from August 2009 to March 2015, RMS, with the knowledge and support of its corporate parent, WIMC, submitted false claims for debenture interest from HUD by failing to properly disclose that it had not met certain deadlines and, therefore, was not entitled to such interest payments. In order to obtain such interest, HUD requires lenders and their servicers to obtain appraisals within 30 days of the loan becoming due and payable. The significance of the 30-day appraisal requirement is, among other things, to establish a mutual understanding between the lender and HUD as to the market value of the property so that a decision can be made as to whether to proceed with foreclosure, engage in a workout with the lender or deal with estate rights issues.
The government also alleged that from July 2010 to October 2014, WIMC, through its subsidiaries, submitted false claims to HUD for the reimbursement of unlawful referral fees by falsely representing them to be lawful sales commissions. As part of an insurance claim, HUD will reimburse lenders or their servicers for sales commissions paid to real estate agents as part of the liquidation of foreclosed properties. HUD will not, however, reimburse lenders or their servicers for fees paid for the referral of liquidation business. According to the government, RMS often used straw companies to liquidate foreclosed properties. Upon sale of the foreclosed property, the straw companies split the six-percent sales commissions: the real estate agents shared a five-percent sales commission and the companies kept a one-percent referral fee. These straw companies, in turn, deducted a small fee from the one-percent referral fee and kicked the remainder back to RMS. Nonetheless, RMS submitted insurance claims to HUD that included payment for the full six-percent sales commission, when, in fact, the payment included a prohibited referral fee.
“This settlement represents a significant milestone in our office’s long standing campaign against mortgage fraud,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “HUD’s lending programs are vital to the economic well-being of some our district’s most vulnerable residents and we are committed to holding servicers and lenders to the high standards required by these programs.”
“This settlement demonstrates my office’s commitment to holding accountable those who seek to undermine the Department of Housing and Urban Development’s financial programs serving homeowners and, particularly, our elderly citizens, who are often most in need of the benefits of the reverse mortgage loan program,” said HUD Inspector General David A. Montoya.
“Today’s settlement is another example that we are serious about making certain our approved lenders are complying with FHA requirements,” said HUD General Counsel Helen Kanovsky. “This is a significant settlement concerning FHA’s reverse mortgage program, which is designed to benefit America’s seniors. We’re pleased that WIMC agreed to accept financial responsibility for these violations.”
The settlement resolves allegations filed in a lawsuit by Matthew McDonald, a former executive of RMS, under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private individuals to sue on behalf of the government for false claims and to share in any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it did in this case. Mr. McDonald will receive $5.15 million as his share of the recovery in this case.
The settlement was the result of the coordinated efforts of the Civil Division, the U.S. Attorney’s Office of the Middle District of Florida and HUD’s Office of Inspector General and Office of General Counsel.
The lawsuit is captioned United States ex rel. McDonald v. Walter Investment Management Corp., et al., Case No. 8:13-cv-1705-T-23TGW (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Virginia Man Indicted on Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned an indictment charging Michael Martin, 56, of Virginia Beach, Virginia, with conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years and a $250,000 fine.Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that in March 2013, Martin conspired with others, including Christopher Venti, to defraud an investor. According to the indictment, Martin and Venti told the investor that in exchange for a payment of $100,000, they would arrange for a "blocked" bank account to be set up in the victim's name which would pay the victim $1,000,000 after 30 says.
The alleged investment was part of the scheme that involved Martin and other conspirators taking money from victims knowing in fact that there was no account that would pay out $1,000,000.
Christopher Venti has been convicted and for his involvement in investment fraud scheme and is awaiting sentencing.
The indictment is the result of an investigation by the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The conviction is the culmination of an investigation conducted by the Arson Task Force, which is comprised of Investigators of the Rochester Fire Department, Rochester Police Department, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing is scheduled for December 2, 2015 at 9:30 a.m. before Judge Geraci.
Versailles Man Indicted for Illegal Distribution of Fentanyl Resulting in a DeathRead the Press Release
A federal grand jury returned an indictment charging Gill Dewayne Garrett, 29, of Versailles, Kentucky, with unlawful distribution of a controlled substance that resulted in an overdose death, announced U.S. Attorney Kerry B. Harvey for the Eastern District of Kentucky, Special Agent in Charge Joseph Regan for the DEA and Chief John Wilhoit of the Versailles Police Department.
In a two-count indictment, filed on Thursday, Garrett was charged with illegal distribution of fentanyl resulting in a death and with conspiracy to distribute fentanyl, heroin and cocaine. A co-defendant, Allen P. White, of Versailles, was also charged in the drug conspiracy.
According to the indictment, on or about July 1, 2015, Garrett unlawfully distributed fentanyl, a powerful opioid, to an individual who died as a result of using the drugs he provided. The indictment also alleges that, from approximately June 2015 until August 2015, Garrett and White conspired to distribute fentanyl, heroin and cocaine in Woodford County.
“This case demonstrates why our Overdose Prosecution Initiative is so important for this region,” said U.S. Attorney Harvey. “Fentanyl is an extremely dangerous drug, far more potent than heroin. Fentanyl is turning up on our streets in increasing quantities, often with deadly results. Federal law provides for particularly severe consequences when illegal drug trafficking results in death. We intend to use every available tool to combat this terrible problem, including these enhanced penalties.”
The investigation was conducted by the Versailles Police Department and the DEA. Assistant U.S. Attorney Todd Bradbury is prosecuting this case on behalf of the federal government.
A date for Garrett to appear in court has not yet been set. He faces a minimum of 20 years in prison and a maximum of life imprisonment. White faces a maximum of 20 years in prison.
Any sentence following a conviction, however, would be imposed after the court considers the U.S. Sentencing Guidelines and the applicable federal statutes.
An indictment is an allegation only. All defendants are presumed innocent and are entitled to a fair trial, at which the government must prove their guilt beyond a reasonable doubt.
Versailles Man Indicted for Illegal Distribution of Fentanyl Resulting in a DeathRead the Press Release
LEXINGTON, Ky. — A federal grand jury returned an indictment charging a Versailles, Ky., man with unlawful distribution of a controlled substance that resulted in an overdose death.
In a two-count indictment, filed on Thursday, Gill Dewayne Garrett, 29, was charged with illegal distribution of fentanyl resulting in a death and with conspiracy to distribute fentanyl, heroin, and cocaine. A co-defendant, Allen P. White, of Versailles, was also charged in the drug conspiracy.
According to the indictment, on or about July 1st of this year, Garrett unlawfully distributed fentanyl, a powerful opioid, to an individual who died as a result of using the drugs he provided. The indictment also alleges that, from approximately June 2015 until August 2015, Garrett and White conspired to distribute fentanyl, heroin, and cocaine in Woodford County.
“This case demonstrates why our Overdose Prosecution Initiative is so important for this region. Fentanyl is an extremely dangerous drug, far more potent than heroin. Fentanyl is turning up on our streets in increasing quantities, often with deadly results. Federal law provides for particularly severe consequences when illegal drug trafficking results in death. We intend to use every available tool to combat this terrible problem, including these enhanced penalties,” said U.S. Attorney Kerry B. Harvey.
Harvey, U.S. Attorney for the Eastern District of Kentucky; Joseph Reagan, Special Agent in Charge, DEA; and John Wilhoit, Chief of the Versailles Police Department, jointly announced the indictment.
The investigation was conducted by the Versailles Police Department and the DEA. Assistant U.S. Attorney Todd Bradbury is prosecuting this case on behalf of the federal government.
A date for Garrett to appear in federal court has not yet been set. He faces a minimum of 20 years in prison and a maximum of life imprisonment. White faces a maximum of 20 years in prison. Any sentence following a conviction, however, would be imposed after the Court considers the U.S. Sentencing Guidelines and the applicable federal statutes.
An indictment is an allegation only. All defendants are presumed innocent and are entitled to a fair trial, at which the government must prove their guilt beyond a reasonable doubt.
Two Plead Guilty to Heroin Distribution ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Dwayne K. Thompson, 38, of Chicago, IL, and Fetara D. McCarter, 31, of Belleville, IL, entered pleas of guilty this week to charges of Conspiracy to Distribute Heroin and Attempted Distribution of Heroin. McCarter pled guilty in the United States District Court in East St. Louis, IL on September 3, 2015, and Thompson on September 4, 2015.
At their change of plea hearings, Thompson and McCarter both admitted that they had cooperated to sell heroin in the metro east area during the first half of 2014. A third co-defendant, Ronald G. Murphy, pled guilty on February 3, 2015, to participating in the same heroin distribution scheme.
McCarter’s sentence hearing is scheduled for January 12, 2016 in United States District Court in East St. Louis. Thompson’s sentence hearing is scheduled for January 14, 2016, also in East St. Louis. Both face a possible maximum penalty of up to 20 years in prison, a fine of up to $1 million, a term of supervised release of not less than 3 years, and a $100 special assessment.
This case was investigated by the Drug Enforcement Administration. The prosecution of the case is being handled by Assistant United States Attorney Robert L. Garrison.
Two Individuals Agree to Pay $435,000 to Settle False Claims Act Suit Alleging Evaded Customs DutiesRead the Press Release
The Department of Justice announced today that Robert Wingfield, of Texas, and Bill Ma, of New Jersey, have agreed to pay $385,000 and $50,000, respectively, to resolve a lawsuit brought by the United States under the False Claims Act alleging that they engaged in a scheme to evade customs duties on imports of aluminum extrusions from the People’s Republic of China (PRC).
“The nation’s customs laws are designed to protect domestic manufacturers from unfair competition abroad,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “These settlements show that the Department of Justice is committed to pursuing claims against anyone involved in a scheme to seek an unfair advantage in U.S. markets by evading duties on imported goods, including individuals who make such evasion possible by the businesses that import the goods.”
The Department of Commerce assesses, and the U.S. Department of Homeland Security’s Customs and Border Protection (CBP) collects, antidumping and countervailing duties to protect U.S. businesses and level the playing field for domestic products. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. Imports of PRC-manufactured aluminum extrusions have been subject to antidumping and countervailing duties since 2010. Aluminum extrusions are used, among other things, to make shower doors and enclosures.
Wingfield was the U.S. sales representative for Tai Shan Golden Gain Aluminum Products Ltd., the Chinese company that exported the aluminum extrusions in this case. The complaint alleged that Wingfield conspired with domestic importers to submit false information to the government to evade duties, and that Ma later formed a company, Northeastern Aluminum Corp. (Northeastern), to act as the importer of record for the goods in an attempt to shield the real importers from liability. As the ostensible importer of record, Northeastern, through Ma, allegedly misrepresented the country of origin of the goods as Malaysia, when the goods were actually manufactured in the PRC and merely shipped through Malaysia, a country without duties on such items. This practice is called transshipping.
The United States previously settled with four other importers allegedly implicated in the scheme. Today’s settlements bring the total to more than $4.58 million. For previous settlement press releases in this case, click here and here. In addition, Wingfield pleaded guilty to one count of using false statements to import goods into the United States.
“When businesses and individuals fraudulently evade import duties designed to foster fair competition, consumers lose,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “We will hold accountable those involved in illegal schemes that place businesses in our district at an unfair disadvantage.”
“Antidumping and countervailing duties are critical to ensure fair competition for U.S. manufacturers,” said Commissioner R. Gil Kerlikowske of the CBP. “U.S. Customs and Border Protection works diligently with the Department of Justice, U.S. Immigration and Customs Enforcement, Homeland Security Investigations and the U.S. Department of Commerce to aggressively pursue duty evasion.”
The allegations resolved by the settlements announced today were originally brought by whistleblower James F. Valenti Jr. in the U.S. District Court for the Middle District of Florida under the qui tam provisions of the False Claims Act. The act permits private parties to sue on behalf of the government those who falsely claim federal funds or, as in this case, those who avoid paying funds owed to the government or cause or conspire in such conduct. The United States may intervene in and take over the lawsuit, as it did in this case. The act allows the whistleblower to receive a share of any funds recovered through the lawsuit. Mr. Valenti will receive approximately $79,000 as his share of today’s settlements.
The case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Middle District of Florida, CBP, U.S. Immigration and Customs Enforcement and the Department of Commerce’s International Trade Administration.
The lawsuit is captioned United States ex rel. Valenti v. Tai Shan Golden Gain Aluminum Products Ltd., et al., Case No. 11-cv-368 (M.D. Fla.). The claims resolved by these settlements are allegations only; there have been no determinations of liability.
Two Former Hall County Sheriff's Office Employees Sentenced for Taking BribesRead the Press Release
GAINESVILLE, Ga. - David M. Treadwell and Austin Herring have been sentenced in separate cases arising from their former employment with the Hall County, Georgia, Sheriff's Office. Treadwell is a former deputy sheriff who accepted a bribe to tip off a person he believed was a drug dealer if the person came under investigation by Hall County law enforcement. Herring, a former jailer at the Hall County Detention Center, smuggled what he believed to be cocaine into the jail and delivered it to an inmate.
“These men committed serious breaches of public trust,” said U.S. Attorney John Horn. “Herring and Treadwell placed self-interest above their sworn duty to serve and protect the citizens of Hall County. For just a few dollars they were willing to trade in their freedom and their careers in law enforcement.”
“Both of these cases illustrate a disheartening departure from integrity and dedication to service that is expected of our law enforcement officers. Today’s sentencing in federal court illustrates the painful but necessary consequences for that departure,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: In late 2014, while Treadwell was employed as a deputy sheriff with the Hall County Sheriff's Office, he accepted $200 or $300 on five occasions from a person he believed was a drug dealer. In exchange for the money, Treadwell agreed to alert the drug dealer if it was learned that the drug dealer was under investigation in Hall County.
In February 2015, while Herring was employed as a jailer with the Hall County Sheriff's Office, he was paid $500 on two occasions to take packages he was told contained cocaine to an inmate inside the jail. On each occasion, Herring took the package to the inmate who was cooperating with the investigation. The inmate then turned the package over to investigators. Herring did not open or tamper with either package, but on each occasion he was specifically told by the person who gave it to him that the package contained cocaine from Mexico. In actuality, neither package contained a controlled substance.
Treadwell and Herring were fired by the Hall County Sheriff's Office immediately upon their respective arrests.
David M. Treadwell, 33, of Gainesville, Georgia, was sentenced to one year, one day in prison to be followed by two years of supervised release, and a $1,000 fine. Treadwell was convicted on these charges on May 12, 2015, after he pleaded guilty.
Austin Herring, 19, of Murrayville, Georgia, was sentenced to six months in prison to be followed by three years of supervised release. As a special condition of supervised release, he must serve the first six months on home confinement with electronic monitoring. Herring was convicted on these charges on May 12, 2015, after he pleaded guilty.
Both cases were investigated by the Federal Bureau of Investigation with assistance from the North Georgia Major Offenders Task Force, which includes deputy sheriffs from the Hall County Sheriff's Office.
Assistant U.S. Attorney William L. McKinnon, Jr. prosecuted both cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tucson City Court Receives Nearly $500,000 in Federal Grant Money to Support Domestic Violence Court EffortsRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $497,062 in additional grant funds have been made available to the Tucson City Court in support of its Domestic Violence Court, with the goal of administering justice, strengthening services to victims of violence, and reducing violence against women. The grant funds were awarded by the Office on Violence Against Women, a component of the U.S. Department of Justice.
“I am pleased to announce that the Justice Department has awarded such significant funding to the Tucson City Court. This grant will enable the Tucson City Court to provide assistance that is crucial to families that find themselves in the court system struggling to recover and heal from the devastation of domestic violence.” said U.S. Attorney John S. Leonardo. “We encourage all agencies to be proactive and apply for future grant funding through our Office on Violence Against Women.”
Additional information about the Office on Violence Against Women and its programs is available at: http://www.justice.gov/ovw.
Information about the U.S. Department of Justice and its programs can be found at:http://www.justice.gov/.
RELEASE NUMBER: 2015-067_TUCSON C. COURT GRANT (2015-FJ-AX-0008)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tonawanda Man Pleads Guilty to Methylone ConspiracyRead 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 Alexander R. Filippone, 24, of Tonawanda, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, methylone, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on three dates in February, March, and April 2013 the defendant sold methylone, which is sometimes sold on the street as “molly,” to an undercover police officer in commercial parking lots in Tonawanda and Amherst, NY.
The plea is the result of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, and the New York State Police, under the direction of Major Michael Ceretto.
Sentencing is scheduled for January 12, 2016, at 12:30 p.m. before Judge Arcara.
Third Detroit Resident Admits Role in Stamford Jewelry Store Smash-and-Grab RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAJUHN GRIFFIN, 26, of Detroit, Michigan, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport for his role in a smash-and-grab robbery of a Stamford jewelry store in November 2014.
According to court documents and statements made in court, on November 26, 2014, GRIFFIN and two accomplices, armed with hammers, entered Sidney Thomas Jewelers, located in the Stamford Town Center Mall, during regular business hours. Soon after entering, they used the hammers to smash open a jewelry display case and removed more than $250,000 worth of Rolex watches. The three then fled with security guards in pursuit. One of GRIFFIN’s accomplices, Richard Mathew Bailey, was caught and apprehended inside the mall while fleeing.
GRIFFIN was arrested in Detroit on April 6, 2015.
GRIFFIN pleaded guilty to one count of interfering with commerce by robbery, an offense that carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled. He is released on a $10,000 bond and conditions requiring home confinement and electronic monitoring.
Richard Matthew Bailey and Brian Moore, both from Detroit, previously pleaded guilty to the same charge. Moore helped organize and carry out the robbery by soliciting others to participate and partially funding it. He also drove accomplices from Detroit to Stamford to carry out the robbery and picked them up after the robbery in order to return to Detroit. Bailey and Moore await sentencing.
This case is being investigated by the Federal Bureau of Investigation and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.
Tampa, Florida Man Pleads Guilty to Credit Card FraudRead 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 Jose Valdivia Quinones, 41, a Cuban National of Tampa, Florida, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to bank fraud. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000 or both.Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Valdivia Quinones fraudulently obtained the credit/debit card numbers of actual people and then encoded counterfeit cards with the information illegally obtained. The defendant then used the counterfeit cards to purchase merchandise at Tops Markets stores in the Towns of Hamburg and East Aurora.
Valdivia Quinones was indicted along with Eduardo Quinones Hernandez, Yasser Carrillo Chartrand, Yaily Santurio Milian, Claudia Diaz Diaz, and Misael Toledo Rios. Hernandez has been convicted. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, the U.S. Secret Service, under the direction of Special Agent in Charge C. Todd Laster, and the New York State Police, under the direction of Major Michael Cerretto.
Sentencing is scheduled on December 15, 2015, before Judge Arcara.
St. Louis Woman Pleads Guilty to Passing Counterfeit CurrencyRead the Press Release
Stephen R, Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 3, 2015, Shawnta L. Thomas, 37, of St. Louis, Missouri, pled guilty to one count of Conspiracy to Possess and pass Counterfeit United States Currency. Thomas faces up to 5 years in federal prison, a fine of up to $250,000 and up to 3 years of supervised release to follow any period of incarceration, when she is sentenced on December 10, 2015.
At her plea, Thomas admitted that between May 16, 2013, and May 19, 2013, she, along with two other individuals traveled into Southern Illinois to pass counterfeit currency at various businesses. Prior to being caught by law enforcement, Thomas and the other members of the conspiracy passed counterfeit United States Federal Reserve notes in Madison and St. Clair Counties. When arrested, Thomas was found to be in possession of an additional $380.00 in counterfeit currency that had not yet been passed.
The investigation was conducted by the United States Secret Service, Bethalto Police Department, and Pontoon Beach Police Department, and the case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
St. Croix Man Sentenced to Federal Prison for Firearm ConvictionRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis on Thursday sentenced Vonne Bailey, 24, of St. Croix, to 12 months in prison for Unlawful Mailing of a Firearm, United States Attorney Ronald W. Sharpe announced. Judge Lewis also entenced Bailey to one year of supervised release and ordered him to pay a $1,000 fine.
In April of this year, Bailey pleaded guilty to Unlawful Mailing of a Firearm. As part of his plea, Bailey admitted that in May 2014, he sent his sister to the post office to pick up a package. The package, shipped from outside of the Virgin Islands, contained a pringfield Armory .40 caliber pistol, a magazine or ammunition storage device, and a Smith and Wesson AR-15 lower receiver with an obliterated serial number. Bailey claimed ownership and responsibility for the package.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Postal Inspection Service. It was prosecuted by Assistant U.S. Attorneys Rami S. Badawy and Rhonda Williams-Henry.
Six Men Arrested for Conspiracy to Possess Cocaine with Intent to DistributeRead the Press Release
St. Thomas, USVI – The U.S. Drug Enforcement Administration (DEA) today arrested six men from the Dominican Republic and Puerto Rico on a criminal complaint charging them with conspiracy to possess cocaine with intent to distribute, United States Attorney Ronald W. Sharpe announced. Three Dominican nationals, Alexandro Gerandino-Aracena, 39, Marco Asala, 35, and Pedro Antion Beltre Guzman, 36, and three men from Puerto Rico, Ricardo Cardona, 35, Wilfredo Perez, 30, and Jose Luis Ponce, 36, made their initial appearance today before U.S. Magistrate Judge Ruth Miller. Judge Miller remanded the men into the custody of the U.S. Marshals Service pending a preliminary and detention hearing on September 8, 2015.
According to the complaint, the men conspired to possess more than five kilograms of cocaine. The maximum sentence for conspiracy to possess cocaine with intent to distribute is life in prison and a fine of $50 million.
United States Attorney Sharpe eminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case is the result of a joint investigation by the DEA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Postal Inspection Service, U.S. Customs and Border Protection, and the Federal Bureau of Investigation.
Rockport Man Arrested for Online Solicitation of A MinorRead the Press Release
CORPUS CHRISTI, Texas – Calvin Nesmith, 28, of Rockport, has been arrested on charges of coercion or enticement of a minor, announced U.S. Attorney Kenneth Magidson.
Nesmith was arrested today upon the filing of a criminal complaint. He is expected to make his initial appearance this afternoon before U.S. Magistrate Judge B. Janice Ellington.
The criminal complaint alleges Nesmith was communicating with a person he believed was the mother of two minor female children. In reality, he was actually talking to an undercover Homeland Security Investigations (HSI) agent from Laredo. During the course of the communications, Nesmith allegedly made arrangements to meet and engage in sexual activity with the mother’s minor female children. The complaint further alleges Nesmith also sent sexually explicit photographs depicting images of child pornography through text messages and emails to the undercover agent.
He was apprehended today as he arrived at the designated meeting place. At the time of his arrest, the complaint alleges he had several electronic devices and condoms with him.
The charges against Nesmith were the result of an investigation conducted by HSI with the assistance of the Corpus Christi Police Department-Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Rochester Woman Sentecned for Giving Drugs to A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Tiffany St. Denis, 26, of Rochester, NY, who was convicted of distribution of drugs to a minor, was sentenced to 41 months in prison by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorneys Tiffany H. Lee and Bradley Tyler, who are handling the case, stated that St. Denis gave drugs to a minor under the age of 18. In addition, between January 2012 and August 2012, the defendant conspired with Otis Willis to entice a female victim under the age of 18 to engage in commercial sex acts. Specifically, St. Denis posted ads for the female victim to engage in prostitution and Willis paid for hotel rooms at a Red Roof Inn.
Willis has been convicted and is awaiting sentencing.Today’s sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Rochester Man Pleads Guilty to Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Laree Greggs, 38, of Rochester, NY, pleaded guilty to conspiracy to commit sex trafficking of a minor before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of life in prison and a fine of $250,000.
Assistant U.S. Attorneys Tiffany H. Lee and Melissa M. Marangola, who are handling the case, stated that in April 2013, Greggs attempted to transport a minor from Rochester to the State of Pennsylvania for the purpose of engaging in prostitution in furtherance of the conspiracy. The defendant used Backpage.com to post ads for the minor.
Greggs was arrested in April 2014 along with Jodia Campbell and Jennifer Miller. Charges are pending against Campbell. Miller has been convicted and is awaiting sentencing. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement‐Homeland Security Investigations.
Rochester Man Pleads Guilty to ArsonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Eddie L. Vaughn, a/k/a Elbow, 35, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to arson of a commercial building and possession of a firearm by a convicted felon. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 30 years, a fine of $500,000 or both. Vaughn also agreed to forfeit a sawed-off shotgun and rounds of ammunition seized in connection with the investigation.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that on September 22, 2013, Vaughn threw a Molotov cocktail into the Miami Deli Grocery at
176 Genesee Street in Rochester. The Molotov cocktail landed on the floor of the store and exploded, spreading fire throughout the building. Both the interior and exterior of the store were burned and extensively damaged.The Miami Deli Grocery was a business which routinely purchased and sold goods from suppliers within and outside the state of New York and the United States. As such, the building was used in interstate and foreign commerce, giving rise to the federal arson investigation and prosecution.
In addition, between June 20 and June 26, 2014, the defendant possessed a firearm and ammunition after having been previously convicted of four felonies.
The conviction is the culmination of an investigation conducted by the Arson Task Force, which is comprised of Investigators of the Rochester Fire Department, Rochester Police Department, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing is scheduled for December 2, 2015 at 9:30 a.m. before Judge Geraci.
Professional Hockey Player Sentenced for Role in Gambling RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. ‐‐ U.S. Attorney William J. Hochul, Jr. announced today that Nathan Paetsch, 32, of Spencerport, NY, who was convicted of transmission of wagering information and structuring transactions to evade reporting requirements, was sentenced to five years probation to include eight months home detention, and 400 hours of community service by Chief U.S. District Judge Frank P. Geraci.
The defendant has already forfeited $165,000 including $22,725 in lieu of a 2011 BMW X5, $76,941 in lieu of his interest in his residence at 25 King Fisher Drive, Spencerport, and $67,197 in lieu of his interest in a residence at 218 Palmetto Dunes Circle, in Naples, Florida. The court also ordered Paetsch to satisfy a $100,000 money judgment.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Paetsch’s was involved in an illegal gambling business with Joseph Ruff, his brother Mark Ruff, both of Connecticut, and Paul Borrelli of Rochester. The gambling operation involved sports betting through multiple offshore internet gambling websites.
Specifically, Paetsch used wire communication facilities, including cellular telephones, to transmit in interstate and foreign commerce, bets, wagers and information which assisted in the placing of bets and wagers with the illegal internet gambling business on sporting events and contests. The defendant’s involvement included transmitting information over cellular telephones to assist professional hockey players and others he recruited to place bets. Paetsch’s transmissions entitled him to receive money or credit as a result of bets and wagers. The information transmitted by the defendant crossed state lines as well as the international boundary of the United States. The information provided by Paetsch included usernames and passwords to accounts for bettors to place internet wagers, odds on sporting events, credit limits and balances of bettors, making arrangements for the collection of cash payments from bettors in Canada, New York, New Jersey, Pennsylvania, and Florida, and bank account information to conceal payments for gambling debts owed from wagers placed with the illegal gambling business.
With respect to the structuring charges, on multiple occasions between January 2010 and June 24, 2014, Paetsch withdrew and deposited transactions from accounts at financial institutions, including but not limited to First Niagara Bank, in amounts less than $10,000. The defendant was aware that as a domestic financial institution, banks are obligated by law to report transactions in excess of $10,000. At the time that he made the transfers, Paetsch intended to evade the reporting requirements because he knew the funds involved proceeds of the illegal internet gambling business.
Mark Ruff and Joseph Ruff were convicted and sentenced to nine years and 41 months in prison respectively. Paul Borrelli was also convicted and is awaiting sentencing on September 8, 2015 at 3:00 pm before Judge Geraci.
The sentencing is the culmination of an investigation conducted by the Organized Crime Drug Enforcement Task Force, which includes the Federal Bureau of Investigation, Internal Revenue Service, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, Rochester Police Department, under the direction of Chief Michael Ciminelli, Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, Greece Police Department, under the direction of Chief Patrick Phelan, the Webster Police Department, under the direction of Acting Chief Joseph Rieger, and Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Portland Man Pleads Guilty to Crack Cocaine Distribution ChargesRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Samuel Collins, 46, of Portland, Maine, pleaded guilty yesterday in U.S. District Court to conspiring to distribute cocaine base, often referred to as crack cocaine.
Court records reveal that between December 2013 and January 2015, Collins conspired with others to sell crack cocaine in Portland, Maine. Members of the conspiracy would arrange for the acquisition of drugs out of state. Once the drugs were transported to Maine, they were provided to retail distributors, including Collins, who would sell the drugs in the Portland area. During the course of the investigation, law enforcement officers conducted controlled purchases of crack cocaine from Collins and determined that Collins let other members of the conspiracy sell drugs from his apartment.
Collins faces up to 20 years in prison and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of investigators from the Federal Bureau of Investigation, the Portland Police Department, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. The Biddeford and Lewiston Police Departments, the Maine Drug Enforcement Agency, and the Maine State Police also assisted with the investigation.
The case also results from the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Pittsburg, Kan., Man Sentenced to 11+ Years on Federal Firearms, Drug ChargesRead the Press Release
WICHITA, KAN. – A Pittsburg, Kan., man was sentenced Thursday to 136 months in federal prison on federal firearms and drug charges, U.S. Attorney Barry Grissom said.
James D. Russian, 57, Pittsburg, Kan., was convicted June 17 on one count of unlawful possession of a firearm after a felony conviction, one count of unlawful possession of ammunition after a felony conviction, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of possession with intent to distribute marijuana.
During trial, prosecutors presented evidence that on March 27, 2013, Russian led police on a car chase from Barton County, Mo., to Crawford County, Kan., when they tried to stop him to investigate a report he threatened two people with a machete and a gun. Russian abandoned his car and hid in a wooded area before he was arrested. Investigators found marijuana, firearms and ammunition in his possession. Because of a prior felony conviction, Russian was prohibited by federal law from possessing firearms or ammunition.
Grissom commended the Crawford County Sheriff’s Office, the Barton County Sheriff’s Office, the Liberal (Mo.) Police Department, the Pittsburg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Debra Barnett for their work on the case.
Nine Sentenced in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
WASHINGTON – Nine individuals have been sentenced on federal charges stemming from a mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland.
The sentences were announced today by Acting U.S. Attorney Vincent H. Cohen, Jr.; Olga Acevedo, Special Agent in Charge of the Mid-Atlantic Region, Office of the Inspector General, Federal Housing Finance Agency; Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the Office of the Inspector General of the U.S. Department of Housing and Urban Development (HUD-OIG); and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
The sentences, the most recent of which took place today, occurred before the Honorable Reggie B. Walton of the U.S. District Court for the District of Columbia. Defendants include:
Edward Dacy, 77, of West Melbourne, Fla. He was sentenced on Aug. 6, 2015 to six years in prison. Dacy was found guilty by a jury of 10 counts of conspiracy, bank fraud, and mail fraud. Upon completion of his prison term, Dacy will be placed on three years of supervised release. In addition, Judge Walton ordered that he pay $2,730,345 in restitution and an identical amount as a forfeiture money judgment.
Frank Davis, Jr., 49, of Washington, D.C. He was sentenced on Aug. 7, 2015 to five years in prison for conspiracy to commit bank fraud. Upon completion of his prison term, Davis will be placed on three years of supervised release. Judge Walton also ordered that Davis pay $2,730,345 in restitution and an amount of $2,296,463 as a forfeiture money judgment;
Frederick Robinson, Sr., 52, of Montgomery, Ala. He was sentenced on July 31, 2015 to 27 months in prison for conspiracy to commit bank fraud. Upon completion of his prison term, Robinson will be placed on three years of supervised release. Robinson also was ordered to pay $925,311 in restitution and an amount of $971,900 as a forfeiture money judgment.
Lonnie Johnson, 47, of Greensboro, N.C. He was sentenced on July 15, 2015 to one year and one day in prison for conspiracy to commit bank fraud. Upon completion of his prison term, Johnson will be placed on three years of supervised release. In addition, Judge Walton ordered that he pay $277,000 in restitution.
Cheryl E. Morrison, 54, of West Melbourne, Fla. She was sentenced on Aug. 5, 2015 to five years of probation for conspiracy to commit mail fraud; she was required to serve 90 days of that time in home detention. She also must pay $42,600 in restitution;
Howard Tutman, III, 54, of Woodstock, Md. He was sentenced on Aug. 4, 2015 to five years of probation for conspiracy to commit bank fraud; he was required to serve 20 weekends in jail. In addition, Judge Walton ordered Tutman to pay $484,370 in restitution and $606,414 in forfeiture;
Pauline Pilate, 50, of Washington, D.C. She was sentenced on July 16, 2015 to three years of probation for conspiracy to commit bank fraud; she was required to serve eight weekends in jail. In addition, Judge Walton ordered that she pay $1 million in restitution and an identical amount as a forfeiture money judgment;
A. Conrad Austin, 49, of Bowie, Md. He was sentenced on May 15, 2015 to five years of probation for conspiracy to commit bank fraud, mail fraud, and wire fraud; he was required to serve four weekends in jail. In addition, Judge Walton ordered that he pay $5,001 in restitution and an identical amount as a forfeiture money judgment.
Anthony Young, 47, of Clinton, Md. He was sentenced today to five years of probation for conspiracy to commit bank fraud; he is required to serve eight weekends in jail. In addition, Judge Walton ordered that he pay $300,600 in restitution.
Today’s sentencing concludes a three-year investigation relating to this mortgage fraud scheme involving the defrauding of banks, mortgage lenders, and the Federal Housing Administration, part of U.S. Department of Housing and Urban Development, of money by obtaining mortgage loans on residential real estate properties through false loan applications and documents and fraudulent settlements. These actions ultimately caused a loss to the banks, lenders, and FHA when mortgages were not paid. Some of the fraudulently-obtained mortgage loans were later resold in the secondary mortgage market to Freddie Mac and Fannie Mae.
“In this case, a group of greedy individuals teamed up with a real estate agent, a certified public accountant, employees of a settlement company, and others to carry out a far-reaching scheme that caused millions of dollars in losses to banks and other lending institutions,” said Acting U.S. Attorney Cohen. “These defendants took money that could have been used to help honest, hard-working people attain the dream of home ownership. They used straw buyers and falsified documents to carry out their long-running fraud. The prosecution in this case demonstrates our resolve to aggressively deal with those who engage in mortgage fraud at the expense of the entire community.”
“This was a multi-tiered scheme with multiple individuals playing a role, and every single one of them underestimated the ability and commitment of law enforcement to protect innocent victims and ultimately the taxpayers from mortgage fraud schemes,” said Special Agent in Charge Acevedo. “We are proud to be a part of the multi-agency effort to hold accountable those who engage in mortgage and bank fraud. FHFA-OIG will continue to carry out this work until all are held accountable.”
“This sentencing was the result of outstanding investigative work conducted by the HUD OIG, and our law enforcement partners,” said Special Agent in Charge Rubenstein. “This collaborative effort sends a clear message that we will commit the necessary resources to make sure that the fraudsters are brought to justice and are prosecuted to the full extent of the law.”
“Even though this $16 million mortgage fraud conspiracy targeted lenders, banks, and the Federal Housing Administration, the result of these criminal actions hurts our entire community,” said Assistant Director in Charge McCabe. “The FBI will continue to work with our law enforcement partners to ensure that these criminal schemes do not go unpunished.”
Davis and Robinson purchased properties in the names of general partnerships; Davis and Robinson then recruited individuals, or straw buyers, to re-purchase these same properties for higher amounts, funded by fraudulently obtained mortgage loans, by promising the buyers that they would not be required to: make financial contributions toward the purchase of the properties; pay the monthly mortgage payments or expenses; or maintain the properties. These mortgage loans were obtained by fraudulent statements and documents, including false loan applications and real estate contracts, phony cashier’s checks and verifications from banks, fabricated tax returns, and letters from a Certified Public Accountant.
Davis recruited Young, who assisted with recruiting other straw buyers; Pilate, who obtained her real estate license in order to create real estate sales contracts for the straw buyers, and Johnson, a bank employee who assisted in creating false verifications of deposits. In order to obtain mortgage loans in the names of some of the straw buyers, Robinson recruited Austin, a Certified Public Accountant (CPA), to create false CPA letters, inflated tax returns, and unjustified financial statements. Tutman was the loan officer on 14 loans or loan attempts, and knew that the borrowers were merely straw buyers for Davis and Robinson and the loan applications contained inflated salaries.
Morrison worked at the settlement company with Dacy, her husband. The settlement company received the funding from the mortgage lender and should have collected the buyers’ cash contributions; it was under the obligation to disburse the loan money only if all of the mortgage lender’s conditions were met and the buyer’s financial contributions collected. Morrison and Dacy handled the straw buyers’ settlement of the properties, with knowledge that the straw buyers did not pay the cash contribution as required by the lenders.
In announcing the sentences, Acting U.S. Attorney Cohen, Special Agent in Charge Acevedo, Special Agent in Charge Rubenstein, and Assistant Director in Charge McCabe expressed appreciation for the work performed by the Special Agents and analysts from the Offices of Inspector General of the Federal Housing Finance Agency and Department of Housing and Urban Development and the FBI, who investigated the case. They also expressed appreciation for the work of the U.S. Secret Service and the Offices of Inspector General of the Central Intelligence Agency, the Department of Justice, and Department of Homeland Security, which assisted in the investigation. They acknowledged the efforts of those working on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Ida Anbarian, Donna Galindo, Corinne Kleinman, Kristy Penny, Tasha Harris, and Heather Sales, former Paralegal Specialist Sarah Reis, and Assistant U.S. Attorneys Anthony Saler, Thomas Swanton, and Arvind K. Lal, who assisted with forfeiture issues. Finally, they commended the work of Assistant U.S. Attorneys Virginia Cheatham and David A. Last, who tried the case against Edward Dacy and handled the plea negotiations with Conrad Austin, and Virginia Cheatham who prosecuted the case.
New York Man Sentenced in Missoula to More Than 16 Years in Prison for Child Pornography CrimeRead the Press Release
David Woods, 38, of Corfu, New York, was sentenced today to 15 years of incarceration, for conspiracy to advertise child pornography. Woods was also required to 15 years of supervised release. Chief U.S. District Court Judge Dana Christensen sentenced Woods following a May 22, 2015, hearing, in which Woods pleaded guilty to the offense.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have proven that an invitation-only online bulletin board, referred to as Dark Moon, was created in 2011. It allowed members to advertise and exchange images of child pornography. In early 2012, Woods became an active member of the bulletin board and continued to be an active member in a more advanced role until April 2013. Woods made posts in the advanced member section of the board, which included URL links and preview images of child pornography. Woods also requested child pornography from other members of the Dark Moon and responded to and commented on child pornography posts made by other members. Law enforcement analysis of Woods’ digital and other devices revealed that he used hard drives, a computer, Woods’ digital devices and other evidence, which revealed that he used multiple hard drives and a computer, in commission of the crime. Woods was ordered to forfeit those items at the sentencing.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children. Investigative agencies in the case include the FBI, Homeland Security Investigations and Montana Division of Criminal Investigation.
Assistant U.S. Attorney Cyndee Peterson prosecuted this case along with Maureen Cain, of the Department of Justice Child Exploitation & Obscenity Section. Because there is no parole in the federal system, Woods will have to serve at least 85 percent of his sentence before he is released from prison.
New York Man Sentenced in Missoula to 15 Years in Prison for Child Porn CrimeRead the Press Release
MISSOULA – David Woods, 38, of Corfu, New York, was sentenced today to 15 years’ incarceration followed by 15 years supervised release, for conspiracy to advertise child pornography. Chief U.S. District Court Judge Dana L. Christensen sentenced Woods following a May 22, 2015, hearing, in which Woods pleaded guilty to the offense.
In an Offer of Proof filed by Montana Assistant U.S. Attorney Cyndee Peterson and Trial Attorney Maureen Cain, of the U.S. Department of Justice’s Child Exploitation & Obscenity Section, the government stated that if the case had proceeded to trial, the government would have proven that an invitation-only online bulletin board, referred to as Dark Moon, was created in 2011. The bulletin board allowed members to advertise and exchange images of child pornography. In early 2012, Woods became an active member of the bulletin board and continued to be an active member in a more advanced role until April 2013. Woods made posts in the advanced member section of the board, which included URL links and preview images of child pornography. Woods also requested child pornography from other members of the Dark Moon, and responded to and commented on child pornography posts made by other members. Law enforcement analysis of Woods’ digital and other devices revealed that he used multiple hard drives and a computer in commission of the crime.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children. Investigative agencies involved in the case include the FBI, Homeland Security Investigations, and the Montana Division of Criminal Investigation.
Assistant United States Attorney Cyndee Peterson prosecuted this case along with Trial Attorney Maureen Cain, of the U.S. Department of Justice’s Child Exploitation & Obscenity Section. Because there is no parole in the federal system, Woods will have to serve at least 85% of his sentence before he is released from prison.
Maryland Man Sentenced to Prison for Involuntary Manslaughter in Traffic Fatality in Northeast WashingtonRead the Press Release
WASHINGTON – Momodui I. Bello, 36, of Fort Washington, Md., was sentenced today to serve four years in prison on charges of involuntary manslaughter and driving under the influence of alcohol, stemming from a traffic fatality that took place earlier this year in Washington, D.C., Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Bello pled guilty to the charges in June 2015 in the Superior Court of the District of Columbia. The plea agreement, which was contingent upon the Court’s approval, called for a sentence between three and five years in prison. The Honorable Lynn Leibovitz accepted the plea and sentenced Bello to a total of five years in prison. She suspended a year of that time on the condition that Bello successfully complete five years of probation upon his release from prison; during that time, the judge ordered that he refrain from driving as well as alcohol.
According to the government’s evidence, on Sunday, March 22, 2015, at about 3:15 a.m., Bello was driving a Volkswagen Passat on Eastern Avenue with the victim, Nancy Tinoza, in the front seat, and a rear seat passenger. The group was coming from Mango Café in Bladensburg, Md., where Bello drank several alcoholic beverages. While driving in the 3400 block of Eastern Avenue NE, in the District of Columbia, Bello failed to maintain his lane or to reduce his speed and crashed the Volkswagen into the rear of a tractor-trailer combination truck that was parked in the curbside lane of Eastern Avenue. The passenger side of Bello’s Volkswagen struck the back of the truck, went under the truck, and came to a rest when it slammed into the truck’s rear wheels. The crash killed Ms. Tinoza, 26.
The evidence indicated that, at the time of the crash, Bello was traveling at 45 mph in the 25 mph zone, and that he did not apply his brakes or take any action to avoid the collision. While at a hospital after the crash, Bello submitted a urine sample which indicated the presence of alcohol with a concentration of .24 percent. A concentration of .10 percent of alcohol in urine is considered to be driving under the influence in the District of Columbia.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit and the Fifth 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 Jim Brennan. Finally, he commended the efforts of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
Manhattan U.S. Attorney Announces Extradition of Pakistani Nationals for Conspiring to Commit Narco-Terrorism and to Sell Missile Systems, Among Other OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mark Hamlet, the Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), announced today the extradition of PIRZADA KHAWAJA ABDUL HAMEED CHISHTI, a/k/a “Abdul Hameed Chishti Pirzada Khawaja,” a/k/a “Benny,” and PIRZADA KHAWAJA ABDUL WAHAB CHISHTI, a/k/a “Abdul Wahab Chishti Pirzada Khawaja,” a/k/a “Angel.” Both are citizens of Pakistan residing in Spain and are charged with conspiring to commit narco-terrorism, to provide material support to a foreign terrorist organization, to import heroin into the United States, and to unlawfully sell missile launching systems. HAMEED CHISHTI and WAHAB CHISHTI were arrested, along with co-defendants Sohail Kaskar and Ali Danish, in Spain on June 17, 2014, at the request of the United States. HAMEED CHISHTI and WAHAB CHISHTI arrived in the Southern District of New York today, and will be presented before United States Magistrate Judge Gabriel W. Gorenstein. The case is assigned to United States District Judge J. Paul Oetken.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Hameed Chishti and Wahab Chishti had no qualms selling multi-kilogram quantities of U.S.-bound heroin to individuals they believed to be members of a terrorist organization, the FARC. According to the complaint and indictment, they also planned to arm these purported terrorists with military-grade weapons, believing they would be used to protect the FARC’s drug-trafficking enterprise. Thanks to the dedicated work of the DEA, this entire conspiracy was foiled and these defendants will face justice on American soil.”
DEA Special Agent in Charge Mark Hamlet said: “Hameed and Wahab Chishti illustrate once again that drug trafficking and terror conspiracies often intersect, support, and facilitate each other’s dangerous and potential deadly plots. DEA and our global partners often uncover criminal activities where drug trafficking networks and terror organizations are one and the same. DEA will continue to work to strengthen our national security and rule of law by attacking these deadly transnational criminal groups who deal in weapons, drugs, and other crimes with the ultimate goal of bringing them to justice here in the United States.”
According to the allegations contained in the Indictment and the underlying Complaint unsealed in Manhattan federal court[1]:
From 2013 through the date of their arrests, HAMEED CHISHTI and WAHAB CHISHTI, and their co-defendants, Kaskar and Danish, participated in a conspiracy to import heroin into the United States, to distribute heroin that would be imported into the United States, and to support the Fuerzas Armadas Revolucionarias de Colombia (“FARC”), or the Revolutionary Armed Forces of Colombia. During meetings at locations in Spain and elsewhere, the defendants agreed to sell multi-kilogram quantities of heroin to individuals they believed to be representatives of the FARC. In fact, the purported FARC representatives were confidential sources working with the DEA. The defendants believed that the purported FARC representatives planned to transport the heroin to the United States. In April 2014, HAMEED CHISHTI and WAHAB CHISHTI arranged for the delivery of a one-kilogram sample of heroin to the purported FARC representatives in the Netherlands, for transport on to the United States.
During the course of the narcotics negotiations, the purported FARC representatives indicated that the FARC was interested in buying “Iglas” – the name of Russian-made surface-to-air missiles – to protect its drug-trafficking business in Colombia. From April 2014 through June 2014, HAMEED CHISHTI, WAHAB CHISHTI, and their co-conspirators participated in discussions where they agreed to sell several missiles to the purported FARC representatives for the purpose of protecting and furthering the FARC’s efforts to manufacture and distribute cocaine for importation, ultimately, into the United States. In April 2014, Danish told the purported FARC representatives that three to five missiles could be delivered directly to wherever they were needed, and that a larger quantity of missiles could be delivered to the FARC in Colombia by diverting the missiles from a “legitimate” order. In May 2014, HAMEED CHISHTI forwarded Danish’s bank account information to one of the purported FARC representatives to facilitate payment for the surface-to-air missiles.
* * *
The indictment charges HAMEED CHISHTI, 47, and WAHAB CHISHTI, 49, with conspiring to commit narco-terrorism, to provide material support to a foreign terrorist organization, to import heroin into the United States, and to unlawfully sell missile launching systems. The United States is seeking extradition of the remaining defendants in the indictment, Kaskar and Danish, from Spain.
If convicted, each defendant faces a maximum sentence of life in prison and a mandatory minimum term of 25 years in prison.The maximum and mandatory minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences will be determined by the judge.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA. Mr. Bharara also thanked the DEA’s New York Field Division and the New York Organized Crime Drug Enforcement Strike Force; the U.S. Customs and Border Patrol, National Targeting Center; the DEA’s Madrid Country Office, the Hague Country Office, the Bogota Country Office, and the Port of Spain Country Office; the Government of the Kingdom of Spain and the Guardia Civil, Central Operations Unit; the Government of the Kingdom of the Netherlands and the National Police of the Netherlands; the Government of the Republic of Colombia and the Colombian National Police; and the U.S. Department of Justice’s Office of International Affairs and National Security Division.
This case is being handled by the Office’s Terrorism and International Narcotics Unit.Assistant United States Attorneys Michael D. Lockard, Adam Fee, and Emil J. Bove III are in charge of the prosecution.
The charges contained in the indictment and complaint are merely accusations 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 Complaint and the description of the Indictment and Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to Federal Prison for Drug Conspiracy and Firearm OffenseRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Christopher Jenkins, 42, of East St. Louis, Illinois, was sentenced today by United States District Court Judge David R. Herndon to 108 months in federal prison for conspiring to possess with intent to distribute at least 15 kilograms of cocaine and using or carrying firearms in furtherance of the drug conspiracy.
According to court documents, in July 2013, Jenkins agreed with two men to rob a drug stash house containing cocaine. Jenkins and another codefendant brought two loaded firearms with them to assist in the robbery. ATF agents, who had been investigating Jenkins and his codefendants’ plans to commit the robbery, arrested the three men in St. Louis. Jenkins was charged in federal court in East St. Louis, Illinois and pled guilty.
There is no parole in the federal prison system. In addition to the prison sentence, Judge Herndon also sentenced Jenkins to serve a total of five years of supervised release and to pay $200 in court fees.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant United States Attorney Monica A. Stump prosecuted the case.
Major Gang Case Results in 37 Bloods Members Sentenced to over 415 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – A multi-year investigation into the Nine Trey Gangsters Bloods criminal street gang, a set of the East Coast United Blood Nation, concluded yesterday as the final defendant in the district wide investigation pleaded guilty.
The Organized Crime Drug Enforcement Task Force (OCDETF) investigation into the Nine Trey Gangsters, designated Operation Ruby Red and Operation Full Blooded Ink, led to the arrest and prosecution of 37 gang members in the Eastern District of Virginia since 2013, resulting in a total of approximately 415 years in prison for the gang members. Much of the criminal activity in the investigation centered on the distribution of narcotics in Virginia, Maryland and the D.C. metro area, namely large quantities of crack cocaine. Other related criminal activity, which often accompanies criminal street gangs, was also discovered, including conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to commit sex trafficking, conspiracy to commit armed robbery, conspiracy to distribute counterfeit currency, and possession and use of firearms.
“The ultimate success of this case is due in large part to the terrific effort of our prosecutors combined with our agency partners and case agents,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “My hope is that our efforts to investigate and prosecute these gang members will send a clear message to our communities: Violent gangs and their members will not be tolerated. They will be aggressively pursued and prosecuted at every opportunity.”
“The results announced today are due in no small part to the coordination and cooperation of the law enforcement agencies and prosecutors focused on eliminating the threat posed by violent gangs in our region,” said Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office. “We will continue to investigate violent gang members through collaborative efforts with the U.S. Attorney’s Office and the agencies that worked this case.”
Below is a complete list of the individuals who were prosecuted, and the respective outcome of their case:
Michael Smallwood, aka Heavenly Sovereignty, 45, of Manassas: Pleaded guilty on April 9, 2013, to conspiracy to distribute crack cocaine. Sentenced on July 10, 2013, to 30 years in prison.
Raymond Dawes, aka Veins, 35, of Manassas: Pleaded guilty on April 23, 2013, to conspiracy to distribute crack cocaine. Sentenced on July 23, 2013, to 12 years 7 months in prison.
Lovell Ritchie, aka Snax, 31, of Manassas: Pleaded guilty on April 23, 2013, to conspiracy to distribute crack cocaine. Sentenced on Dec. 12, 2013, to 12 years 7 months in prison.
Amanda Ewell, aka Amanda Sovereignty, 30, of Manassas: Pleaded guilty on June 5, 2013, to conspiracy to distribute crack cocaine. Sentenced on Sept. 23, 2013, to 10 years in prison.
Brynn Lackey, aka BEZ, 33, of Washington DC: Pleaded guilty on July 3, 2013, to conspiracy to distribute crack cocaine. Sentenced on Oct. 01, 2013, to 10 years in prison.
Thaddaeus Snow, aka Storm, 25, of Manassas: Found guilty at trial on Feb. 21, 2014, of various crimes, including sex trafficking, distribution of narcotics, robbery and counterfeit money, violence in aid of racketeering, conspiracy to distribute 280 grams or more of crack cocaine, possession of a firearm, Hobbs Act Robbery, etc. Sentenced on May 9, 2014, to 40 years in prison.
Curtis Martino, aka Curtis Dodd, aka Red Rum, 31, of Elkridge, Maryland: Pleaded guilty on Nov. 20, 2013 to conspiracy to commit sex trafficking. Sentenced on March 21, 2014, to 21 years in prison.
William Sykes, aka Black Gambino, 31, of Bealeton: Found guilty at trial on Feb. 21, 2014, of various crimes, including sex trafficking, distribution of narcotics and counterfeit money, violence in aid of racketeering, conspiracy to distribute crack cocaine, and conspiracy to commit sex trafficking. Sentenced on May 9, 2014, to 30 years in prison.
George Williams, aka Champ, 30, of Bealeton: Pleaded guilty to conspiracy to commit racketeering, and use and discharge of a firearm during an act of violence in aid of racketeering. Sentenced on April 8, 2014, to 12 years in prison.
Markeith Kerns, aka LTK, 22, of Summerduck: Pleaded guilty on Oct. 16, 2013, to conspiracy to commit racketeering, and conspiracy to commit sex trafficking. Sentenced on Jan. 3, 2014, to 10 years in prison.
Janee Yates, aka Alazia, 25, of Warrenton: Pleaded guilty on Oct. 3, 2014, to conspiracy to commit racketeering, and conspiracy to distribute crack cocaine. Sentenced on Jan. 17, 2014, to 10 years in prison.
Deontae Holland, aka D-Boy, 29, of Bealeton: Pleaded guilty on Oct. 28, 2013, to conspiracy to commit racketeering, and conspiracy to distribute crack cocaine. Sentenced on Jan. 17, 2014, to 15 years in prison.
William Sharp Manning aka Ill Will, 26, of Warrenton: Pleaded guilty on Dec. 9, 2013, to conspiracy to commit racketeering, and conspiracy to distribute crack cocaine. Sentenced on March 7, 2014, to 15 years in prison.
James Watson, aka Black Kat, 36, of Gainesville: Pleaded guilty on Feb. 10, 2014, to conspiracy to commit racketeering with the predict acts being distribution of heroin, and marijuana and sex trafficking. Sentenced on April 28, 2014, to 2 ½ years in prison.
Christopher Head aka Briss, 27, of Washington, D.C.: Pleaded guilty on Nov. 25, 2014, to conspiracy to commit racketeering, and conspiracy to distribute crack cocaine. Sentenced on Feb. 21, 2014, to 11 years in prison.
Nicole Yates aka Merlot, 29, of Fairfax: Pleaded guilty on Oct. 3, 2013, to conspiracy to commit sex trafficking, and conspiracy to commit armed robbery. Sentenced on Jan. 3, 2014, to 10 years in prison.
Candy Minor, 30, of Fredericksburg: Pleaded guilty on Nov. 6, 2013, to conspiracy to commit sex trafficking. Sentenced on Jan. 24, 2014, to 2 years in prison.
Kaleef Tweedy, aka Bloody Tweed, 25, of Dumfries: Pleaded guilty on Dec. 13, 2013, to conspiracy to commit sex trafficking, conspiracy to commit armed robbery and using a firearm during a crime of violence in aid of racketeering. Sentenced on March 14, 2014, to 15 years in prison.
Justin Finley, aka J Mo, 26, of Manassas: Pleaded guilty on Nov. 26, 2013, to conspiracy to distribute crack cocaine. Sentenced on Feb. 28, 2014, to 11 years 8 months in prison.
Stephon Greene aka Blitz, 23, of Manassas: Pleaded guilty on Jan. 30, 2014, to conspiracy to distribute crack cocaine. Sentenced on April 18, 2014, to 10 years in prison.
LaTonya Snow, aka Lady Dynasty, 32, of Manassas: Pleaded guilty on Jan. 30, 2014, to conspiracy to violate the Mann Act by transporting prostitutes across state lines. Sentenced on April 18, 2014, to 90 days in prison and three years of active probation.
Devante Jordan, aka Trey, 23, of Alexandria: Pleaded guilty on Jan. 14, 2014, to conspiracy to commit armed robbery and using a firearm during a crime of violence. Sentenced on March 28, 2014, to 11 years 8 months in prison.
Aayron Marshal, aka Mook, 25, of Warrenton: Pleaded guilty on Oct. 10, 2013, to conspiracy to distribute crack cocaine. Sentenced on Jan. 17, 2014, to 10 years in prison.
Joshua Pendleton Brooks aka Wacko, 29, of Manassas: Pleaded guilty on Jan. 23, 2014, to conspiracy to distribute crack cocaine. Sentenced on April 8, 2014, to 5 years 10 months in prison.
Lionel Ritchie, aka Boogie, 31, of Remington: Pleaded guilty on Oct. 3, 2013, to conspiracy to distribute crack cocaine. Sentenced on Jan. 3, 2014, to 7 years in prison.
Jameel Aleem, aka Nino B, 33, of Washington, D.C.: Pleaded guilty on Nov. 12, 2014, to conspiracy to distribute crack cocaine. Sentenced on Dec. 12, 2014, to 3 years 4 months in prison.
Antwan Minor, aka Noid, 35, of Manassas: Pleaded guilty on Oct. 1, 2013, to conspiracy to distribute crack cocaine. Sentenced on Jan. 17, 2014, to 14 years in prison.
Deyonka Gaskins, 31, of Manassas: Pleaded guilty on Feb. 6, 2014, to conspiracy to distribute crack cocaine. Due to Gaskin’s lack of criminal history she was eligible for the safe valve guidelines for sentencing (which removes the ten year mandatory minimum portion of her final sentence). Sentenced to 6 days in prison and 3 years of active probation.
Gracier Isique, 30, of Manassas: Pleaded guilty on Jan. 16, 2014, to conspiracy to distribute crack cocaine. Sentenced to 3 years of active probation.
Ricardo Simmons, 26, of Alexandria: Pleaded guilty on April 21, 2014, to use and discharge of a firearm during an act of violence, and conspiracy to commit Hobbs Act robbery. Sentenced on July 11, 2014, to 12 years 6 months in prison.
Abdur Roland, aka Boo, 27, of Woodbridge: Pleaded guilty on Feb. 19, 2015, to Hobbs Act robbery, conspiracy to commit Hobbs Act robbery, brandishing of a firearm during an act of violence, and possession of a firearm by a convicted felon. Sentenced on May 08, 2015, 13 years in prison.
Brien Hughes, aka Poncho, 32, of Fredericksburg: Pleaded guilty on March 4, 2015, to two separate charges of brandishing of a firearm during an act of violence. Sentenced on Aug. 7, 2015, to 30 years in prison.
Jonathan Coleman, aka Swagg, 24, of Woodbridge: Pleaded guilty on March 18, 2015, to brandishing of a firearm during an act of violence. Sentenced on June 19, 2015, to 7 years in prison.
Robert Bates, aka Kid, 27, of Staunton: Pleaded guilty on April 16, 2015, to possession of a firearm during an act of violence. Sentenced on July 21, 2015, to 5 years in prison.
Joshua Lewis, aka Smiley, 25, of Woodbridge: Pleaded guilty on May 26, 2015, to possession of a firearm during an act of violence. Sentenced on Aug. 14, 2015, to 7 years in prison.
Dajuan Burrous, aka Baggz, 26, of Dumfries: Pleaded guilty on Sept. 3, 2015, to brandishing a firearm during or in a relation to a crime of violence. Sentencing set for Nov. 20, 2015.
The case was investigated by OCDETF, Operation Ruby Red. 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. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Agencies who participated in some or all of this investigation include: FBI’s Washington Field Office, Fairfax County Police Department, Northern Virginia Regional Gang Task Force, Hampton Police Department, Fauquier County Sheriff’s Office, Manassas City Police Department, Prince William County Police Department and the United States Marshal Service. Assistant U.S. Attorneys Dennis Fitzpatrick, Angela Mastandrea-Miller, and Zach Terwilliger prosecuted the cases along with former Assistant U.S. Attorney Adam B. Schwartz and former Special Assistant U.S. Attorney Catherine Ahn. The federal prosecutors were assisted by the Prince William and Spotsylvania County Commonwealth Attorneys’ Offices.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
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Johnstown Crack Dealer Sentenced to 3 Years in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to three years in prison and three years’ supervised release on his conviction of distribution of cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Willie Gene Gulley, Jr., 47.
According to information presented to the court, on Aug. 18, 2014, Gulley distributed less than 28 grams of cocaine base.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Gulley.
Government Subcontractors Convicted for BriberyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that yesterday a federal jury in Anchorage convicted John Becker aka Jack Becker of bribing a public official. On August 27, 2015, ADA Station Communication, Inc. and Herschell Becker pled guilty to bribing a public official in connection with the same investigation. The offenses occurred in June and August 2014.
ADA Station Communication, Inc., based in Crossville, Tennessee and Herschell Becker, 48, of Grandview, Tennessee, pled guilty to three counts of bribing of a public official. Jack Becker, 53, of Crossville, Tennessee was found guilty of two counts of bribing of a public official.
ADA Station Communication, Inc. is a telecommunications company based in Crossville, Tennessee, which specializes in providing turnkey structured cabling infrastructures including analysis, design, engineering, installation, and maintenance of voice, video and data networks. ADA Station Communication has performed work on behalf of both federal and commercial entities.
Jeff Becker founded the company in 1995. Herschell Becker has been the Vice President of ADA Station Communication since 1995. Jack Becker has been an employee of ADA Station Communication since approximately 2003. Jeff Becker, Herschell Becker, and Jack Becker are brothers.
ADA Station Communication was awarded subcontracts to install and upgrade fiber optic cables on Joint Base Elmendorf Richardson (JBER) during 2014 and 2015. During the summer of 2014, ADA Station Communication was installing fiber optic cables on JBER under five contracts. On June 17, 2014, Herschell Becker and Jack Becker (hereinafter “the Beckers”) met with a United States Air Force Cable/Antenna Work Leader (hereinafter “Air Force official”) to complete quality assurance inspections on two of the five contracted project locations. During the inspections, the Air Force official discovered numerous discrepancies, informed the Beckers, and requested that the Beckers address and fix the issues.
Evidence at trial showed that On June 18, 2014, Herschell Becker and Jack Becker offered $10,000 to the Air Force official to accept the work previously identified as deficient that they performed as subcontractors installing fiber optic cables on JBER. During this meeting, the Beckers told the Air Force official they could “pad his pockets” and “the less people that know the better”. The Beckers knew that the Air Force official would make the final decision on whether to accept the work as complete and wanted the Air Force official to overlook the discrepancies. The Beckers told the Air Force official it would cost them $60,000 to fix the discrepancies and that they would pay $10,000 to the Air Force official if he would approve the work without the discrepancies being fixed. The Air Force official declined the $10,000. The Beckers again offered to pay the Air Force official $10,000.
On August 22, 2014, Herschell Becker and Jack Becker met with the Air Force official. Unbeknowst to the Beckers, the Air Force official had reported to law enforcement the Beckers’ offer of $10,000, and was now acting at the direction of the Air Force Office of Special Investigations. During the August 22, 2014 meeting, the Beckers and the Air Force official discussed the prior offer to bribe the Air Force official. Herschell Becker acknowledged that it was a big risk to offer to bribe the Air Force official, but that he would do it again because it cost him $60,000 to repair the problems and he would have much rather have given the Air Force official $10,000. The Beckers also mentioned that they were bidding on others jobs in Alaska and would like to win the business. The Beckers and the Air Force official also discussed the current status of the project and the failed test results on the fiber optic cables installed by ADA Station Communication. Herschell Becker acknowledged that they would not be able to pass the testing requirement at the 1490 nm wavelength. Herschell Becker and Jack Becker then described the additional costs they would incur if they had to remain in Alaska for a longer period of time should the Air Force official require them to try to fix the cables. Herschell Becker then offered the Air Force official $5,000 cash to accept ADA Station Communication’s deficient fiber optic installation work as is. The Air Force official, as directed by law enforcement, agreed. Herschell Becker directed the Air Force official to send him his address for payment.
On August 27, 2014, Jack Becker spoke with the Air Force official regarding the logistics of the $5,000 payment. Referring to the August 22 conversation, Jack Becker said that Herschell Becker would like to get the Air Force official’s address. Jack Becker indicated that ADA Station Communication needed the Air Force official to accept the work they did. Jack Becker also told the Air Force official that he knew there was more work coming up next summer and that ADA Station Communication was going to try to bid that too, so things could get better down the road. Later that day, on August 27, 2014, Herschell Becker told the Air Force official that he would get the full payment the next day in person and that if the Air Force official could help ADA Station Communication win the bid for the upcoming work next year, it would be well worth his while.
On August 28, 2014, Herschell Becker texted the Air Force official that Jack Becker would be “getting with him today”, and again said that if the Air Force official could put in a good word for ADA Station Communication to the review team for next year’s work, it would be well worth his while.
On August 28, 2014, an ADA Station Communication check signed by ADA Station Communication’s Accounting Manager in the amount of $6,500 was negotiated for petty cash funds. The ADA Station Communication Accounting Manager then wired $5,000 cash via MoneyGram from a Wal-Mart in Crossville, Tennessee to Jack Becker in Anchorage, Alaska. Jack Becker picked up the $5,000 cash from a Wal-Mart in Anchorage. Jack Becker then concealed the Wal-Mart envelope of $5,000 cash in a set of large papers. Jack Becker hand delivered the $5,000 cash to the Air Force official that afternoon.
Sentencing has been scheduled for November 6, 2015 and November 10, 2015, in Anchorage. The maximum penalty for Herschell Becker and Jack Becker for each count of conviction is up to 15 years in prison, three years’ supervised release, and a fine of up to $250,000. The maximum penalty for ADA Station Communication, Inc. is up to five years’ probation, and a fine of up to the greater of $500,000 or twice the gross gain or loss from the offense. In addition, the United States will be seeking restitution on behalf of the United States Air Force in the approximate amount of $345,000.00.
The investigation of this case began when the public official reported to law enforcement that the subcontractors had offered him $10,000 to look the other way on faulty work and accept their deficient work on behalf of the United States Air Force. This case was investigated by the Air Force Office of Special Investigations. The case was prosecuted by Assistant U.S. Attorney Yvonne Lamoureux.
Georgia Hospital System and Physician to Pay More than $25 Million to Settle Alleged False Claims Act and Stark Law ViolationsRead the Press Release
Columbus Regional Healthcare System (Columbus Regional) and Dr. Andrew Pippas have agreed to pay more than $25 million to resolve allegations that they violated the False Claims Act by submitting claims in violation of the Stark Law. Today’s settlement also resolves allegations that Columbus Regional and Pippas submitted claims for payment to federal health care programs that misrepresented the level of services they provided. Under the settlement agreement, Columbus Regional has agreed to pay $25 million, plus additional contingent payments not to exceed $10 million, for a maximum settlement amount of $35 million, and Pippas has agreed to pay $425,000.
“Today’s settlement demonstrates our continuing vigilance to ensure that health care referrals are based solely on the medical needs of the patient and that health care providers bill the government only for the care they provide,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Healthcare providers who seek to profit at the expense of taxpayers will face serious consequences.”
“The maximum amount of this settlement, some $35 million, is appropriate given the number of alleged violations involving the False Claims Act and the Stark Act,” said U.S. Attorney Michael Moore of the Middle District of Georgia. “Access to health care is on everyone’s mind, especially with respect to rural communities. The type of conduct alleged in this case puts that access at risk. This settlement reflects on the one hand, the Department of Justice’s commitment to make sure that hospitals and physicians who commit violations of federal law are held to account, and on the other hand, especially with the requirement of the monitoring agreement, makes sure that we continue to have appropriately functioning health care providers accessible to the wide array of communities they serve.”
The Stark Law prohibits physician referrals of certain health services for Medicare and Medicaid patients if the physician has a financial relationship with the entity to which he or she refers the patient. The United States alleged that between 2003 and 2013, Columbus Regional provided excessive salary and directorship payments to Pippas that violated the Stark Law.
The United States also alleged that from May 2006 through May 2013, Columbus Regional submitted claims to federal health care programs for services at higher levels than supported by the documentation, and between 2010 and 2012, they submitted claims to federal health care programs for radiation therapy at higher levels than the therapy that was provided.
Of the $25.425 million that Columbus Regional and Pippas have agreed to pay to resolve their respective civil claims, they will pay $24,666,040 to the federal government for federal healthcare program losses and $758,960 to the state of Georgia for the state share of its Medicaid losses.
Also as part of the settlement, Columbus Regional will enter into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services-Office of the Inspector General (HHS-OIG) that requires Columbus Regional to implement measures designed to avoid or promptly detect future conduct similar to that which gave rise to this settlement.
“Increasing referrals by self-dealing and violating the Stark statute – as the government contended in this case – undermines impartial medical judgment at the expense of patients and taxpayers,” said Special Agent in Charge Derrick L. Jackson of HHS-OIG. “Charging federal health care programs for pricier services than those actually provided will not be tolerated.”
The settlements resolve allegations filed in two lawsuits by Richard Barker, a former Columbus Regional executive, in federal court in Columbus, Georgia. The lawsuits were filed under the qui tam, or whistleblower, provisions of the federal False Claims Act and the Georgia False Medicaid Claims Act, which permit private individuals to sue on behalf of the federal and state governments, respectively, for false claims and to share in any recovery. Mr. Barker’s share of the settlement has not yet been determined.
This illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.9 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The civil settlement was handled by the U.S. Attorney’s Office of the Middle District of Georgia and the Civil Division’s Commercial Litigation Branch. These matters were investigated by HHS-OIG’s Office of Investigations, with assistance from the HHS Office of Counsel to the Inspector General and Office of General Counsel and Center for Medicare and Medicaid Services, and the state of Georgia’s Medicaid Fraud Control Unit.
The civil lawsuits are captioned United States ex rel. Barker v. Columbus Regional Healthcare System, et al., Case No. 4:12-cv-108 (M.D. Ga.) and United States ex rel. Barker v. Columbus Regional Healthcare System, et al., Case No. 4:14-cv-304 (M.D. Ga.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Georgia Hospital System and Physician to Pay More Than $25 Million to Settle Alleged False Claims Act and Stark Law ViolationsRead the Press Release
Columbus Regional Healthcare System (Columbus Regional) and Dr. Andrew Pippas have agreed to pay more than $25 million to resolve allegations that they violated the False Claims Act by submitting claims in violation of the Stark Law. Today’s settlement also resolves allegations that Columbus Regional and Pippas submitted claims for payment to federal health care programs that misrepresented the level of services they provided. Under the settlement agreement, Columbus Regional has agreed to pay $25 million, plus additional contingent payments not to exceed $10 million, for a maximum settlement amount of $35 million, and Pippas has agreed to pay $425,000.
“The maximum amount of this settlement, some $35 million, is appropriate given the number of alleged violations involving the False Claims Act and the Stark Act,” said U.S. Attorney Michael Moore of the Middle District of Georgia. “Access to health care is on everyone’s mind, especially with respect to rural communities. The type of conduct alleged in this case puts that access at risk. This settlement reflects on the one hand, the Department of Justice’s commitment to make sure that hospitals and physicians who commit violations of federal law are held to account, and on the other hand, especially with the requirement of the monitoring agreement, makes sure that we continue to have appropriately functioning health care providers accessible to the wide array of communities they serve.”
The Stark Law prohibits physician referrals of certain health services for Medicare and Medicaid patients if the physician has a financial relationship with the entity to which he or she refers the patient. The United States alleged that between 2003 and 2013, Columbus Regional provided excessive salary and directorship payments to Pippas that violated the Stark Law.
The United States also alleged that from May 2006 through May 2013, Columbus Regional submitted claims to federal health care programs for services at higher levels than supported by the documentation, and between 2010 and 2012, they submitted claims to federal health care programs for radiation therapy at higher levels than the therapy that was provided.
Of the $25.425 million that Columbus Regional and Pippas have agreed to pay to resolve their respective civil claims, they will pay $24,666,040 to the federal government for federal healthcare program losses and $758,960 to the state of Georgia for the state share of its Medicaid losses.
Also as part of the settlement, Columbus Regional will enter into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services-Office of the Inspector General (HHS-OIG) that requires Columbus Regional to implement measures designed to avoid or promptly detect future conduct similar to that which gave rise to this settlement.
“Increasing referrals by self-dealing and violating the Stark statute – as the government contended in this case – undermines impartial medical judgment at the expense of patients and taxpayers,” said Special Agent in Charge Derrick L. Jackson of HHS-OIG. “Charging federal health care programs for pricier services than those actually provided will not be tolerated.”
The settlements resolve allegations filed in two lawsuits by Richard Barker, a former Columbus Regional executive, in federal court in Columbus, Georgia. The lawsuits were filed under the qui tam, or whistleblower, provisions of the federal False Claims Act and the Georgia False Medicaid Claims Act, which permit private individuals to sue on behalf of the federal and state governments, respectively, for false claims and to share in any recovery. Mr. Barker’s share of the settlement has not yet been determined.
This illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.9 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The civil settlement was handled by the U.S. Attorney’s Office of the Middle District of Georgia and the Civil Division’s Commercial Litigation Branch. These matters were investigated by HHS-OIG’s Office of Investigations, with assistance from the HHS Office of Counsel to the Inspector General and Office of General Counsel and Center for Medicare and Medicaid Services, and the state of Georgia’s Medicaid Fraud Control Unit.
The civil lawsuits are captioned United States ex rel. Barker v. Columbus Regional Healthcare System, et al., Case No. 4:12-cv-108 (M.D. Ga.) and United States ex rel. Barker v. Columbus Regional Healthcare System, et al., Case No. 4:14-cv-304 (M.D. Ga.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Gahanna Woman Charged with Illegally Receiving VA BenefitsRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Rita Green, 55, of Gahanna, Ohio, with illegally receiving Department of Veterans Affairs Dependency and Indemnity Compensation benefits in an indictment returned in Columbus, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Gavin McClaren, Resident Agent in Charge, Department of Veterans Affairs Office of Inspector General (VA-OIG), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the indictment returned yesterday.
The indictment alleges that Green kept $89,646.22 of Department of Veterans Affairs Dependency and Indemnity Compensation benefits to which she knew she was not entitled. Green’s mother was a recipient of the benefits, which are paid to surviving spouses of veterans who died in the line of duty or died from a disease or injury incurred or aggravated while on active duty. Those benefits were paid monthly to a bank account in the mother’s name.
It is alleged that after Green’s mother died in 2009, Green continued to withdraw the benefits from the bank account of her mother and use the money via a debit card in her mother’s name.
Theft of public money is a crime punishable by up to 10 years in prison and a $250,000 fine.
U.S. Attorney Stewart commended the investigation of this case by the VA-OIG and the FBI, and Assistant U.S. Attorney Peter Glenn-Applegate, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Four South Bay Residents Charged in Wide-Ranging Visa Fraud, Loan Fraud, and Money Laudering OperationRead the Press Release
SAN JOSE – Two residents of Cupertino and two residents of Sunnyvale were indicted, along with seven business entities they allegedly owned, in connection with conspiracy that included visa fraud and mail fraud, announced Acting United States Attorney Brian Stretch, U.S. Homeland Security Investigations Acting Special Agent in Charge Tatum King; Abel Salinas, Special Agent in Charge Department of Labor Office of the Inspector General; and U.S. State Department, Diplomatic Security Service, San Francisco Field Office Special Agent in Charge David Zebley.
In an indictment unsealed yesterday, Ragini Vecham, 36, of Cupertino; Kishore Pallapothu, 42, of Cupertino; Satyanarayana Tota, 45, of Sunnyvale; and Ramana Reddy, 44, of Sunnyvale, were indicted for their part in an alleged conspiracy by which individuals used companies to fraudulently submit fraudulent H-1B visa applications and other documents to the U.S. Department of Homeland Security and the U.S. Department of Labor. The companies indicted include Horizon Technologies, Inc., Softnet Technology Solutions, Inc., Rose Hayward LLC, Sage 20 Hayward LLC, Jasmine 20 Hayward LLC, Tulip 26 Hayward LLC, and Lily 20 Hayward LLC.
According to the indictment, since at least 2006, Vecham and Pallapothu held themselves out as staffing specialists for technology firms based in Santa Clara County. Along with Tota, they allegedly submitted fraudulent documents to DHS and DOL in connection with applications for H-1B visas. The documents, according to the indictment, contained false representations and material omissions. For example, several of the documents allegedly falsely stated that Atiric Software was a legitimate business with a legitimate need for H-1B beneficiaries, a statement which was not true. Also according to the indictment, as part of the scheme, Vecham and Pallapothu created and funded numerous limited liability companies for the purpose of purchasing commercial and residential real estate to conceal funds generated from the illegal visa fraud and conceal assets from the Government investigation. Vechum and Pallapothu allegedly also fraudulently obtained several loans to finance the purchases that were then titled in the names of the limited liability companies.
The indictment also describes criminal behavior undertaken by the defendants to avoid having the conspiracy exposed. For example, the indictment contains allegations that Vecham, Pallapothu, and Tota lied to federal law enforcement authorities when interviewed about the visa fraud. Pallapothu is also charged with attempting to persuade visa beneficiaries to provide false and misleading information to federal agents, including allegedly providing visa beneficiaries with false facts about job offers they were supposed to have received and facts about jobs they were supposed to have performed.
Vecham, Pallapothu, Tota, and Reddy all are charged with participating in a conspiracy to commit visa fraud, mail fraud, obstruction of justice, witness tampering and to defraud the United States, in violation of 18 U.S.C. § 371. In addition, Vecham and Pallapothu are charged with thirteen counts of visa fraud, in violation of 18 U.S.C. § 1546; thirteen counts of mail fraud, in violation of 18 U.S.C. § 1341; five counts of loan fraud, in violation of 18 U.S.C. § 1014; one count of wire fraud, in violation of 18 U.S.C. § 1343; and two counts of money laundering, in violation of 18 U.S.C. § 1957. Additionally, Pallapothu and Tota are charged with one count each of obstruction of justice, in violation of 18 U.S.C. § 1505, and Pallapothu is charged with two counts of witness tampering, in violation of 18 U.S.C. § 1512.
The individual defendants made their initial appearances in federal court yesterday and were released pursuant to various individual bond restrictions. All the individual defendants are next scheduled to appear on September 17, 2015, for further status before U.S. Magistrate Judge Howard R. Lloyd in San Jose.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum term of imprisonment for conspiracy to commit fraud is 5 years; the maximum term of imprisonment for visa fraud is 10 years; the maximum term for imprisonment for mail fraud is 20 years; the maximum term of imprisonment for money laundering is 10 years; the maximum term for obstruction of justice is 5 years; the maximum term for loan fraud is 30 years; the maximum term for wire fraud is 20 years; and the maximum term for witness tampering is 20 years. Additional periods of supervised release, fines, and special assessments also could be imposed. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Timothy Lucey is prosecuting the case with the assistance of Laurie Worthen and Yolanda Singletary. The prosecution is the result of an investigation by U.S. Department of Labor, Office of Inspector General; U.S. State Department, Diplomatic Security Service; and U.S. Homeland Security Investigations.
Former School Teacher Sentenced to 2 1/2 Years in Prison for Sexually Abusing Fourth Grade Student in ClassroomRead the Press Release
WASHINGTON – Giovanni Pena, 31, a former teacher from Washington, D.C., was sentenced today to a 2 ½-year prison term on charges stemming from the sexual abuse of a fourth-grade student at Oyster-Adams Bilingual School, a D.C. Public School, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Pena pled guilty in June 2015, in the Superior Court of the District of Columbia, to one count of second-degree child sexual abuse and one count of obscenity. He was sentenced by the Honorable Michael Ryan. Following his prison term, Pena will be placed on 10 years of supervised release. He also must register as a sex offender for 10 years. Under the Court’s voluntary sentencing guidelines, Pena could have faced a maximum prison term of five and a half years. The government asked for a 4 ½-year term, and the defense asked that Pena be sentenced to time-served, to be followed by a period of supervised release. Pena has been in custody since his arrest on June 2, 2015.
According to the government’s evidence, Pena was the victim’s fourth-grade teacher during the 2013 – 2014 school year. Pena sexually abused the child by touching the child’s clothed penis and buttocks. Pena told detectives with the Metropolitan Police Department’s Youth Investigations Division that he was curious whether a child that age could have an erection. Pena also had the child touch Pena’s clothed penis. These incidents took place in the classroom during the school day.
Additionally, Pena sent nude photos of his erect penis to the child, as well as a photo of Pena’s sperm. Pena used the mobile application Snapchat to transmit these images. Pena also taught the child about masturbation.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the detectives of the Metropolitan Police Department’s Youth Investigations Division. He also commended the efforts of staff from the U.S. Attorney’s Office, including Child Forensic Interview Specialists Tracy Owusu and Karen Giannakoulias, Victim/Witness Advocate Elsa Maltese, Criminal Investigator John Marsh, Paralegal Specialists Joyce Arthur and D’Yvonne Key, Legal Intern Allison Denton, and Assistant U.S. Attorney John L. Hill, who prosecuted the case.
Former Insurance Salesman Arrested for Tax EvasionRead the Press Release
BOSTON – A former insurance salesman was arrested this morning in connection with the theft of more than $500,000 he stole from three clients.
Paul Disidoro, 64, of Georgetown, Mass., was charged in a criminal complaint with attempting to evade income taxes. He is scheduled to appear in U.S. District Court in Boston at 3:30 p.m. today before U.S. District Court Magistrate Judge M. Page Kelley.
The complaint alleges that for many years Disidoro operated an insurance business from his home, and that he sold fixed annuities for Sun Life Financial. From 2007 through 2010, Disidoro stole $515,597 from three of his clients and used the money for his personal benefit, including spending more than $100,000 for online horse race betting. Disidoro did not report any of the stolen funds as income on his federal income tax returns and did not pay any taxes on the funds. Instead, Disidoro filed tax returns reporting only the commissions he had received from various insurance companies, which the insurance companies also had reported, as required, to the IRS.
The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Arrested on Federal Drug Distribution ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that five individuals charged in separate federal complaints were arrested on Thursday evening in Bangor. Specifically,
Mario Lee, 40, of Bangor, was arrested on a federal criminal complaint charging him with four counts of distribution of heroin.
Kliton Xhemali, 34, of Bangor, was arrested on a federal criminal complaint charging him with two counts of distribution of cocaine.
Antonio Gordon, 32, of Bangor, was arrested on a federal criminal complaint charging him with three counts of distribution of cocaine base (“crack”).
Syrian Baldwin, 29, of Bangor, was arrested on a federal criminal complaint charging him with two counts of distribution of cocaine base (“crack”).
Tawana Greene, 23, of Bangor, was arrested on a federal criminal complaint charging her with two counts of distribution of cocaine base (“crack”).
On the drug distribution charges, each defendant faces up to twenty years in prison, a $1,000,000 fine, or both.
The cases resulted from a year-long joint investigation among the Maine Drug Enforcement Agency, the U.S. Drug Enforcement Administration and the Bangor Police Department into the activities of drug trafficking organizations operating in the Bangor area. DEA Special Agent in Charge Michael J. Ferguson said: “These arrests demonstrate the strength and continued commitment of our federal, state and local law enforcement partners to work together to address a continuing drug problem in the Bangor area."
A complaint is merely a written allegation of criminal conduct. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Final Defendant Pleads Guilty in Massive Heroin Trafficking CaseRead the Press Release
NORFOLK, Va. – The final defendant in a major drug case that ultimately dismantled a massive heroin trafficking operation in the Tidewater area pleaded guilty today. All eight co-conspirators have now pleaded guilty for their involvement in the organization’s distribution of between 30 and 90 kilograms of heroin.
Deyonta Hinton, 31, of Portsmouth, pleaded guilty today for his involvement in a massive heroin trafficking operation. Hinton faces a mandatory minimum penalty of 20 years in prison and a maximum penalty of life in prison when he is sentenced on Dec. 10, 2015.
Alonzo Outten, the head of the Outten Organization, and seven of his co-conspirators were indicted by a grand jury earlier this month. In the early morning hours of July 14, 2015, search warrants were executed simultaneously on 14 properties in Portsmouth, Chesapeake, and Suffolk, by more than 250 law enforcement officials from three states and the District of Columbia. Seven weeks later all eight co-conspirators have pleaded guilty to conspiracy to manufacture, distribute, and possess with the intent to distribute heroin.
Name
Date of Guilty Plea
Date of Sentencing
Jermaine Jones
July 29, 2015
Oct. 29, 2015
Garnett Brown
July 29, 2015
Nov. 2, 2015
Latina Jackson
July 29, 2015
Nov. 5, 2015
Alonzo Outten
July 30, 2015
Nov. 2, 2015
Troy Gay
Aug. 6, 2015
Nov. 5, 2015
Jerald Outten
Aug. 10, 2015
Nov. 17, 2015
Sherita Nicks
Aug. 10, 2015
Nov. 17, 2015
Deyonta Hinton
Sept. 4, 2015
Dec. 10, 2015
According to the statement of facts in Deyonta Hinton’s case, he set up a base of operations to sell his heroin at the Sleep Inn and Comfort Suites motels on Western Branch Boulevard in Portsmouth. Hinton used at least six identified individuals to help facilitate the distribution of heroin and paid for one family member to live at the Sleep Inn to help generate a consistent presence that would regularly bring in heroin addicts. Hinton, whose primary supplier of heroin was Alonzo Outten, admits to distributing more than 3.5 kilograms of heroin during the course of the conspiracy.
Alonzo Outten, the leader of the organization from November 2013 to July 2015, managed the manufacture and distribution of between 30 and 90 kilograms of heroin (an estimated street value between $1.5 and $4.5 million dollars). The Outten Organization supplied kilogram amounts of heroin to at least two Bloods gang sets: the Imperial Gangsta Bloods led by “Godfather” Chris Smith aka Killa, who pleaded guilty July 28, 2015, and the Gorilla Mafia Piru gang led by “Godfather” Theodore Vann aka Flatline, who pleaded guilty on June 25, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea were accepted by U.S. District Judge Mark S. Davis.
This case was investigated by the FBI’s Norfolk Field Office and the Chesapeake Police Department with the assistance of the Portsmouth Police Department, the Virginia State Police, and the Naval Criminal Investigative Service. Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-80 (Outten, et. al.); 2:15-cr-93 (Jackson); 2:15cr7 (Smith); and 2:15cr60 (Vann).
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Eleven Men and Women Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
Donita Urban, 46, and Brian Swartz, 48, from Waterloo, Iowa and Scott Mathews, 51, Daniela Castellanos, 28, Rogelio Avalos-Sanchez, 22, Jennifer Mares-Flores, 20, Miguel Mendoza, a/k/a “Loko,” 23, Alvaro Hernandez, 30, Marcos Perez-Trevino, 45, Francis Gasca, 25, and Alejandro Becerra, a/k/a Juan Flores, 27, from Marshalltown, Iowa, have been charged with one count of conspiracy to distribute methamphetamine. The charges are contained in an Indictment unsealed on September 1, 2015 in United States District Court in Cedar Rapids.
The Indictment alleges that, between the Spring of 2013 and continuing to the present, all individuals conspired to distribute methamphetamine.
If convicted, Urban, Swartz, Hernandez, and Perez-Trevino face a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, $100 in special assessments, and at least five years of supervised release following any imprisonment. Mathews, Castellanos, Avalos-Sanchez, Mares-Flores, Mendoza, Gasca, and Becerra face a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and at least three years of supervised release following any imprisonment.
Hernandez appeared on September 1, 2015, in federal court in Cedar Rapids and was held without bond. Urban, Swartz, Mares-Flores, and Avalos-Sanchez appeared on September 3, 2015, and were held without bond pending a detention hearing set for September 8, 2015. Trial in this matter is set for November 2, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the 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 CR 15-2037.
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Duval County Man Sentenced to Federal Prison for Manufacturing Counterfeit CurrencyRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Christopher Jon Kirkland (42, Jacksonville) to two years and six months in federal prison for manufacturing counterfeit Federal Reserve notes. As part of his sentence, Kirkland has agreed to forfeit computer equipment that was used to manufacture the counterfeit currency. He was also ordered to pay restitution.
According to the plea agreement, in August 2013, Kirkland began manufacturing counterfeit $20 and $100 Federal Reserve notes. Once he manufactured the notes, his co-defendants, William Brinkley, Jr. and Timothy Larry Malden, drove him to various businesses in Florida and Georgia to pass the counterfeit currency. They passed the notes to obtain merchandise and reloadable gift cards. They also returned fraudulently obtained merchandise to obtain genuine currency. From approximately August 2013 to December 2013, the group passed or attempted to pass approximately $32,600 in counterfeit currency throughout Florida and Georgia.
Brinkley and Malden previously pleaded guilty for their roles in this case. On September 3, 2015, Brinkley was sentenced to 36 months’ probation. The sentencing hearing for Malden is scheduled for October 29, 2015.
This case was investigated by United States Secret Service Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.