Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
28 August 2015
Santa Barbara Doctor Found Guilty of 79 Federal Charges for Writing Prescriptions for Huge Quantities of Dangerous NarcoticsRead the Press Release
SANTA ANA, California – A Santa Barbara-area physician who wrote numerous prescriptions for powerful painkillers, such as OxyContin, for “patients” – many of whom were drug addicts, and some of whom died from drug overdoses – was convicted today of 79 drug trafficking charges.
Julio Gabriel Diaz, 67, a Goleta resident who operated the Family Medical Clinic in Santa Barbara, was found guilty following a 2½-week trial in United States District Court.
Diaz, who was known to some “patients” as the “Candyman,” was a prolific writer of prescriptions for highly addictive and dangerous drugs. In 2011, for example, Diaz wrote prescriptions for more than 1.7 million doses of painkillers. His “patients” typically paid cash, waited hours for a 10-minute visit with Diaz, and received prescriptions for powerful drugs that included opioids, anti-anxiety medications and muscle relaxants. Several doctors and pharmacists who testified during the trial said that they had never seen any doctor prescribe the combination and quantity of drugs prescribed by Diaz.
Diaz was found guilty of 79 counts of distribution of a controlled substance. Twenty-six of the charges relate to oxycodone (a drug often sold under the brand name OxyContin), 10 of the charges relate to methadone, seven of the counts relate to hydromorphone (a drug commonly sold under the brand name Dilaudid), 10 of the charges relate to fentanyl, 11 of the charges relate to hydrocodone (a drug often sold under the brand names Vicodin and Norco), 10 of the charges relate to alprazolam (a drug often sold under brand name Xanax), and five of the charges related to the distribution of various controlled substances to a minor. In relation to all 79 counts, the jury found that Diaz distributed the drugs outside of the usual course of professional practice and without a legitimate medical purpose.
As a result of today’s verdicts, Diaz will face a maximum possible sentence of 1,360 years in federal prison, although the actual sentence will likely be less under the United States Sentencing Guidelines.
Diaz is scheduled to be sentenced by United States District Judge Cormac J. Carney on December 14.
According to the evidence presented at trial, doctors, nurses and other personnel with Santa Barbara Cottage Hospital wrote to the Medical Board of California and gave statements to investigators to complain about Diaz. Cottage Hospital doctors believed that Diaz posed such a threat that they prepared a spreadsheet documenting emergency room visits by patients who had been prescribed narcotics by Diaz.
Diaz was arrested in this case in January 2012. After his arrest, the state of California revoked his license after finding that he provided incompetent and grossly negligent care.
The investigation into Diaz was conducted by the Drug Enforcement Administration and the Santa Barbara Police Department, which received the assistance of the California Medical Board.
CONTACT: Assistant United States Attorneys Ann Luotto Wolf (714) 338-3533 and Bilal Essayli (213) 894-2303
Richmond Woman Sentenced to 2 Years in Prison for BriberyRead the Press Release
RICHMOND, Va. – Connie Richardson, 65, of Richmond, was sentenced today to 24 months in prison, followed by three years of supervised release for bribery concerning a program receiving federal funds. Richardson was also ordered to pay $158,428.09 in restitution.
Richardson pleaded guilty on May 13, 2015. According to court documents, Richardson was employed by the Virginia Department of Juvenile Justice (VDJJ) as the Runaway Coordinator. In that role, Richardson was responsible for administering services related to the interstate compact for juveniles, which governs the transportation of juveniles from one state to another. Christopher C. Connor, 37, of Virginia Beach, Virginia, was the owner of Patriot Protective Services, Inc. (Patriot), a security company based in Norfolk, Virginia. In September 2010, VDJJ issued an invitation for bids soliciting sealed bids from contractors interested in providing transportation and escort services for juvenile offenders returning to the Virginia. In October 2010, Patriot and another security company, Border Security Solutions, LLC (Border), were awarded contracts to provide transportation and escort services to VDJJ for a period of two years, with an option to renew the contracts for three successive years. One week after the contracts were awarded, Connor paid Richardson $1,500 and continued to make periodic payments to Richardson from October 2010 through February 2015. During that period of time, Connor paid Richardson over $30,000 via cash, checks, deposits to a prepaid Visa card, and transfers between SunTrust bank accounts.
In exchange for these payments from Connor, Richardson steered the vast majority of VDJJ’s transportation and escort requests to Patriot. She also knowingly approved inflated and falsified invoices submitted to Patriot. Richardson was informed by Border’s owner that his company had the capacity to transport more juveniles and charged less per hour for transportation and escort services than Patriot. Nonetheless, Richardson stopped assigning any new work to Border and Border closed for lack of business in September 2011.
As a result of the relationship between Richardson and Connor, VDJJ paid Patriot over $469,000 for transportation and escort services from October 2010 through February 2015.
Connor pleaded guilty on July 28, 2015 and will be sentenced on Oct. 29, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office made the announcement after sentencing by U.S. District Judge Robert E. Payne.
This case was investigated by the FBI and the Virginia State Police. Assistant U.S. Attorney Katherine Lee Martin prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:15-cr-78 and 3:15-cr-133.
Optometrist Jeffrey Sponseller and Eye Care One Settle False Claims Act Case for $275,000Read the Press Release
AUGUSTA, GA: Jeffrey Sponseller, O.D. of Augusta, Sponseller Eye Care One, P.C., and S&H Eye Care, LLC, currently doing business as “Eye Care One,” have agreed to pay the United States a total of $275,000.00 to settle allegations that they violated the False Claims Act by submitting or causing the submission of false claims to federal and state healthcare programs for services that were either inadequately performed or not performed at all.
The civil settlement resolves allegations that were originally part of a joint criminal and civil investigation of Sponseller’s submission of bogus claims to Medicare, Medicaid, and the Railroad Retirement Medicare Program for the lengthiest and most expensive type of eye examination conducted on nursing home patients when, in reality, he either conducted a very short eye examination or no examination at all. On January 10, 2014, Sponseller was sentenced to 33 months in prison and ordered to pay $441,729.85 in restitution to Medicare. Sponseller’s civil False Claims Act settlement is in addition to the restitution ordered in his criminal case.
This civil settlement resolves related allegations that were part of a federal lawsuit filed under the False Claims Act on January 8, 2014. Sponseller is the former owner of Eye Care One, located at 3152 Washington Road in Augusta, Georgia, which is now owned by his wife, Tracie Sponseller, O.D. and Matthew Haubert, O.D.
United States Attorney Edward J. Tarver said, “This settlement demonstrates the United States Attorney’s Office’s commitment to pursue all available remedies against those who commit health care fraud. Both criminal and civil avenues will be pursued in order to protect the American taxpayers as well as our nation’s elderly citizens, who were taken advantage of in this instance.”
The case was investigated by Special Agent David Graupner, Department of Health and Human Services, Office of Investigations; and Investigator Kimberly Reinken-Creamer of the United States Attorney’s Office, Southern District of Georgia. The United States was represented by Assistant United States Attorney Shannon Heath Statkus. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
New Orleans Man Charged with Receipt of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANDREW HUTCHINSON, age 24, of New Orleans, was charged today in a one-count Bill of Information with receipt of images and videos depicting the sexual exploitation of children.
If convicted, HUTCHINSON faces a mandatory minimum of five years imprisonment and a maximum term of imprisonment of twenty years, followed by up to a lifetime of supervised release, and a $250,000 fine per count. He can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Nevada County Man Sentenced to Nearly 30 Years in Prison for Wounding Two Law Enforcement Officers in Gun BattleRead the Press Release
Brent Douglas Cole, 61, was sentenced to 29 years and seven months in prison today for an assault on law enforcement officers by U.S. District Judge Garland E. Burrell Jr., announced U.S. Attorney Benjamin B. Wagner for the Eastern District of California.
On Feb. 11, 2015, after a three-day trial, a federal jury found Cole guilty of assaulting a federal officer with a deadly weapon that inflicted bodily injury, assaulting a person assisting a federal officer with a deadly weapon that inflicted bodily injury and discharging a firearm during a crime of violence.
According to evidence presented at trial, on June 14, 2014, a Bureau of Land Management (BLM) ranger stopped Cole while he was driving a vehicle on a closed dirt road on BLM land near the South Yuba River campground. The ranger gave Cole a warning and allowed him to leave without issuing him a citation. The ranger continued up the dirt road and discovered a makeshift campsite with two motorcycles – one of which had been reported stolen and the other with expired tags. The ranger requested the California Highway Patrol’s (CHP) help to impound the motorcycles.
While the ranger and a CHP officer were preparing to move the two motorcycles, Cole emerged from the brush surrounding the campsite and announced that he was coming to get his things. The ranger asked Cole if he was armed and when Cole replied that he was, the ranger reached for his handcuffs. Cole said he would not allow the ranger to place the handcuffs on him. Cole then drew a Taurus .44-caliber revolver from the right side of his waist, pointed the weapon at the ranger and fired multiple rounds. One round struck the Ranger in the left shoulder. In response to Cole’s actions, the ranger and the CHP officer returned fire. Cole fired multiple rounds at the CHP officer and one bullet struck the officer in the right leg. Cole was struck several times by law enforcement.
After expending his ammunition and being shot multiple times, Cole gave up and was arrested. Cole, the BLM ranger and the CHP officer received medical attention and all survived their wounds.
“The defendant has repeatedly demonstrated that he lacks remorse and has no respect for the law,” said Judge Burrell in the sentencing. “…He has a stunning lack of regard for anyone other than himself.”
“The men and women in law enforcement who serve our communities risk their lives every day they report to work,” said U.S. Attorney Wagner. “The BLM ranger and CHP officer who were shot in this case were doing nothing more than carrying out routine duties. We are gratified with today’s sentence, we appreciate the assistance and cooperation of the Nevada County District Attorney’s Office and we will continue to make prosecuting those who put officers at risk a top priority for our office. More than anything, we are thankful that their injuries were not more severe and that the incident did not result in a loss of life.”
“I thank the Department of Justice, Office of the U.S. Attorney and the many jurisdictions at the federal, state and local level who worked together to successfully prosecute this case,” said California State Director Jim Kenna for BLM. “On behalf of the BLM, thank you to all the brave men and women who risk their lives, backing each other up to protect America’s public lands and the people who visit them.”
“This case is illustrative of the risk law enforcement officers face on a daily basis” said Special Agent in Charge Monica M. Miller of the Sacramento’s Field Office for the FBI. “Cole violently assaulted both a Bureau of Land Management officer and the CHP officer who was assisting him in his lawful duties. Cole will now have decades to consider his willful disregard for the officer’s duty to uphold the law. The FBI stands ready to investigate such violent crimes against federal officers and thank our law enforcement partners for their collaboration.”
“Every day, our officers go to work not knowing what dangers they may face,” said Commissioner Joe Farrow for CHP. “This case demonstrated not only the challenges and dangers, but also the cooperation and teamwork among agencies that protect the people of California. On behalf of the CHP, I would like to express my appreciation to U.S. District Judge Burrell for his deliberations in pronouncing the nearly 30-year sentence.”
This case was the product of an investigation by the Bureau of Land Management, the Federal Bureau of Investigation, the California Highway Patrol, the Nevada County Sheriff’s Office and the Nevada County District Attorney’s Office. Former Assistant U.S. Attorney Michael D. McCoy and Assistant U.S. Attorney Heiko Coppola prosecuted the case.
Nevada County Man Sentenced to Nearly 30 Years in Prison for Wounding Two Law Enforcement Officers in Gun BattleRead the Press Release
SACRAMENTO, Calif. — United States District Judge Garland E. Burrell Jr. sentenced Brent Douglas Cole, 61, to 29 years and seven months in prison today for an assault on law enforcement officers, United States Attorney Benjamin B. Wagner announced.
On February 11, 2015, after a three-day trial, a federal jury found Cole guilty of assaulting a federal officer with a deadly weapon that inflicted bodily injury, assaulting a person assisting a federal officer with a deadly weapon that inflicted bodily injury, and discharging a firearm during a crime of violence.
According to evidence presented at trial, on June 14, 2014, a Bureau of Land Management (BLM) ranger stopped Cole while he was driving a vehicle on a closed dirt road on BLM land near the South Yuba River campground. The ranger gave Cole a warning and allowed him to leave without issuing him a citation. The ranger continued up the dirt road and discovered a makeshift campsite with two motorcycles — one of which had been reported stolen, and the other with expired tags. The ranger requested the California Highway Patrol’s help to impound the motorcycles.
While the ranger and a CHP officer were preparing to move the two motorcycles, Cole emerged from the brush surrounding the campsite and announced that he was coming to get his things. The ranger asked Cole if he was armed, and when Cole replied that he was, the ranger reached for his handcuffs. Cole said he would not allow the ranger to place the handcuffs on him. Cole then drew a Taurus .44-caliber revolver from the right side of his waist, pointed the weapon at the ranger and fired multiple rounds. One round struck the Ranger in the left shoulder. In response to Cole’s actions, the ranger and the CHP officer returned fire. Cole fired multiple rounds at the CHP officer and one bullet struck the officer in the right leg. Cole was struck several times by law enforcement.
After expending his ammunition and being shot multiple times, Cole gave up and was arrested. Cole, the BLM ranger, and the CHP officer received medical attention, and all survived their wounds.
In sentencing, Judge Burrell stated: “The defendant has repeatedly demonstrated that he lacks remorse and has no respect for the law. … He has a stunning lack of regard for anyone other than himself.”
“The men and women in law enforcement who serve our communities risk their lives every day they report to work,” said U.S. Attorney Wagner. “The BLM ranger and CHP officer who were shot in this case were doing nothing more than carrying out routine duties. We are gratified with today’s sentence, we appreciate the assistance and cooperation of the Nevada County District Attorney’s Office, and we will continue to make prosecuting those who put officers at risk a top priority for our office. More than anything, we are thankful that their injuries were not more severe, and that the incident did not result in a loss of life.”
“I thank the Department of Justice, Office of the United States Attorney and the many jurisdictions at the federal, state and local level who worked together to successfully prosecute this case," said BLM California State Director Jim Kenna. “On behalf of the BLM, thank you to all the brave men and women who risk their lives, backing each other up to protect America’s public lands and the people who visit them.”
“This case is illustrative of the risk law enforcement officers face on a daily basis. Cole violently assaulted both a Bureau of Land Management officer and the CHP officer who was assisting him in his lawful duties. Cole will now have decades to consider his willful disregard for the officer’s duty to uphold the law,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “The FBI stands ready to investigate such violent crimes against federal officers and thank our law enforcement partners for their collaboration.”
“Every day, our officers go to work not knowing what dangers they may face. This case demonstrated not only the challenges and dangers, but also the cooperation and teamwork among agencies that protect the people of California,” California Highway Patrol Commissioner Joe Farrow said. “On behalf of the CHP, I would like to express my appreciation to United States District Judge Burrell for his deliberations in pronouncing the nearly 30-year sentence.”
This case was the product of an investigation by the Bureau of Land Management, the Federal Bureau of Investigation, the California Highway Patrol, the Nevada County Sheriff’s Office, and the Nevada County District Attorney’s Office. Former Assistant U.S. Attorney Michael D. McCoy and Assistant U.S. Attorney Heiko Coppola prosecuted the case.
Milton Man Charged with Wire Fraud in Real Estate Investment Fraud SchemeRead the Press Release
BOSTON – Daniel J. Flynn, III, 52, of Milton, was arrested and charged in U.S. District in Boston with wire fraud. According to the criminal complaint, Flynn defrauded investors of millions in a real estate investment scheme that began in at least 2007.
The complaint details several aspects of the alleged scheme, including that Flynn falsified the value of his real estate investment fund by creating fraudulent promissory notes purportedly worth millions and representing to investors that they were legitimate debts that were owed to Flynn’s real estate investment fund. Second, the complaint alleges that Flynn repeatedly induced investors to loan him money to purchase specific pieces of property that, in some cases, Flynn already owned. It is further alleged that Flynn often used investor’s money to pay his personal debts and to repay prior investors. Once investors uncovered Flynn’s fraudulent activities, Flynn changed the name of his business and created similar entities through the names of third parties in an effort to conceal his fraudulent activities.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Neil J. Gallagher, Jr. of Ortiz’s Economic Crimes Unit.
The details contained in the criminal complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Men Sentenced for Conspiracy to use Weapons of Mass DestructionRead the Press Release
ROME, Ga. - Brian Cannon, Terry Peace and Cory Williamson have been sentenced for conspiring to use weapons of mass destruction in attacks against federal government agencies. The defendants planned to attack critical infrastructure while motivating militia groups in other states to rise up and join them in removing government officials who they believed had exceeded their Constitutional power.
“In this case, anti-government ideology and rhetoric morphed into dangerous extremism and led these defendants to arm themselves and travel to a meeting to pick up pipe bombs and other explosives intended for attacks,” said U.S. Attorney John Horn. “The attacks planned by the defendants, while rare, posed a serious threat to not only the safety of our public servants, but also all other members of the community.”
“This case illustrates the FBI’s commitment in preventing attacks instead of responding to their aftermath. The convictions and now federal sentencing of these individuals on conspiracy charges again represents that the juries and courts understand this shift in the law enforcement mindset in dealing with individuals or groups that wish to bring harm to the public or those who serve the public,” 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 January and February 2014, Cannon, Peace and Williamson participated in Internet chat rooms frequented by militia members and others with a shared anti-government ideology. During the chat room conversations, Cannon, Peace and Williamson discussed starting a revolution against the federal government by conducting an attack aimed at the infrastructure supporting the Transportation Security Administration, the Department of Homeland Security and the Federal Emergency Management Administration.
According to their conversations, their goals included forcibly removing government officials who the defendants believed acted beyond the scope of the U.S. Constitution. During one of the online conversations, Peace said that they would launch the attack between February 1, and February 15, 2014. He encouraged the militia members to review guerilla warfare tactics, accumulate supplies and prepare their families. By February 1, 2014, Cannon and Williamson had moved to Georgia and were living with Peace at his Rome, Georgia residence.
Cannon, Peace and Williamson targeted the infrastructure supporting their federal agency targets because they believed this would reduce the amount of unnecessary casualties and make it difficult for the government to respond to their attack. The men decided to launch the first attack in Georgia to prompt militia members in other states to begin attacks in their respective states.
Unbeknownst to the defendants, another participant in the chat rooms became alarmed at their plans, informed the FBI of the attack against the government, and agreed to assist in this investigation.
On February 8, 2014, Peace asked the cooperating witness to provide twelve pipe bombs and two thermite devices for use in their attack. Peace said he wanted the pipe bombs designed for “maximum fragmentation” and thermite devices capable of penetrating the engine block of a military-grade armored vehicle. Peace, Cannon and Williamson then made plans to meet with the cooperating witness after the pipe bombs and thermite devices were constructed.
On February 15, 2014, the defendants, armed with numerous firearms, drove from Peace’s residence to meet with the cooperating witness at a location in Cartersville, Georgia, to pick up the pipe bombs and thermite devices. Prior to their arrival, the cooperating witness was provided with twelve inert pipe bombs and two inert thermite devices. The three defendants were arrested as they were taking possession of the items. While their online conversations reflected attacks on federal targets, the defendants planned to use the thermite device at a local police department.
Cannon, 37, has been sentenced to 12 years in prison to be followed by five years of supervised release, and perform 100 hours of community service.
Peace, 47, has been sentenced to 12 years in prison to be followed by five years of supervised release, and perform 100 hours of community service.
Williamson, 29, has been sentenced to 12 years in prison to be followed by five years of supervised release, and perform 100 hours of community service.
Cannon, Peace and Williamson were convicted of the charges on May 26, 2015 after pleading guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Tracia M. King and Ryan K. Buchanan prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Men Sentenced for Conspiracy to Use Weapons of Mass DestructionRead the Press Release
Brian Cannon, 37, Terry Peace, 47, and Cory Williamson, 29, have been sentenced for conspiring to use weapons of mass destruction in attacks against federal government agencies. The defendants planned to attack critical infrastructure while motivating militia groups in other states to rise up and join them in removing government officials who they believed had exceeded their Constitutional power.
“In this case, anti-government ideology and rhetoric morphed into dangerous extremism and led these defendants to arm themselves and travel to a meeting to pick up pipe bombs and other explosives intended for attacks,” said U.S. Attorney John Horn of the Northern District of Georgia. “The attacks planned by the defendants, while rare, posed a serious threat to not only the safety of our public servants, but also all other members of the community.”
“This case illustrates the FBI’s commitment in preventing attacks instead of responding to their aftermath,” said Special Agent in Charge J. Britt Johnson for the FBI’s Atlanta Field Office. “The convictions and now federal sentencing of these individuals on conspiracy charges again represents that the juries and courts understand this shift in the law enforcement mindset in dealing with individuals or groups that wish to bring harm to the public or those who serve the public.”
According to U.S. Attorney Horn, the charges and other information presented in court: In January and February 2014, Cannon, Peace and Williamson participated in Internet chat rooms frequented by militia members and others with a shared anti-government ideology. During the chat room conversations, Cannon, Peace and Williamson discussed starting a revolution against the federal government by conducting an attack aimed at the infrastructure supporting the Transportation Security Administration, the Department of Homeland Security and the Federal Emergency Management Administration.
According to their conversations, their goals included forcibly removing government officials who the defendants believed acted beyond the scope of the U.S. Constitution. During one of the online conversations, Peace said that they would launch the attack between February 1, and Feb. 15, 2014. He encouraged the militia members to review guerilla warfare tactics, accumulate supplies and prepare their families. By Feb. 1, 2014, Cannon and Williamson had moved to Georgia and were living with Peace at his Rome, Georgia residence.
Cannon, Peace and Williamson targeted the infrastructure supporting their federal agency targets because they believed this would reduce the amount of unnecessary casualties and make it difficult for the government to respond to their attack. The men decided to launch the first attack in Georgia to prompt militia members in other states to begin attacks in their respective states.
Unbeknownst to the defendants, another participant in the chat rooms became alarmed at their plans, informed the FBI of the attack against the government, and agreed to assist in this investigation.
On Feb. 8, 2014, Peace asked the cooperating witness to provide twelve pipe bombs and two thermite devices for use in their attack. Peace said he wanted the pipe bombs designed for “maximum fragmentation” and thermite devices capable of penetrating the engine block of a military-grade armored vehicle. Peace, Cannon and Williamson then made plans to meet with the cooperating witness after the pipe bombs and thermite devices were constructed.
On Feb. 15, 2014, the defendants, armed with numerous firearms, drove from Peace’s residence to meet with the cooperating witness at a location in Cartersville, Georgia, to pick up the pipe bombs and thermite devices. Prior to their arrival, the cooperating witness was provided with 12 inert pipe bombs and two inert thermite devices. The three defendants were arrested as they were taking possession of the items. While their online conversations reflected attacks on federal targets, the defendants planned to use the thermite device at a local police department.
Cannon has been sentenced to 12 years in prison to be followed by five years of supervised release and perform 100 hours of community service.
Peace has been sentenced to 12 years in prison to be followed by five years of supervised release and perform 100 hours of community service.
Williamson has been sentenced to 12 years in prison to be followed by five years of supervised release and perform 100 hours of community service.
Cannon, Peace and Williamson were convicted of the charges on May 26, 2015 after pleading guilty.
This case was investigated by the FBI. Assistant United States Attorneys Tracia M. King and Ryan K. Buchanan prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
McAllen Area Marketer Pleads Guilty to Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ A marketer for several area home health agencies has entered a guilty plea to conspiracy to commit health care fraud for her role in a scheme to defraud the Medicare program, announced U.S. Attorney Kenneth Magidson.
Martha Lidia Flores, 51, of Pharr, admitted to engaging in a kickback scheme of exchanging referrals of Medicare beneficiaries for money. From Nov. 15, 2010, to July 9, 2012, Flores issued 11 illegal kickback checks to co-conspirator Argentina Cavazos, 57, of Hidalgo, in exchange for referrals of Medicare beneficiaries. The information was then used by home health care companies to bill Medicare.
Flores admitted to using the patient information she bought from Cavazos to create fraudulent referral forms to submit to the numerous home health companies where she was employed. Claims were subsequently filed with Medicare based on the fraudulent referral forms.
Flores admitted she forged the signatures of physicians on the referral forms, knowing that the physicians did not authorize the need for home health services and/or that the beneficiaries did not need or qualify for home health services. Flores also admitted that she was illegally compensated for the patient referrals.
U.S. District Judge Randy Crane, who accepted the plea today, has set sentencing for Nov. 9, 2015. At that time, she faces up to 10 years in federal prison and a possible $250,000 fine. Flores previously pleaded guilty to illegal remunerations for her role in the scheme and will be sentenced Oct. 15, 2015.
The investigation leading to the charges was conducted by the U.S. Department of Health and Human Services ‐ Office of Inspector General and the FBI. Assistant U.S. Attorney Michael Day is prosecuting the case.
Maui Resident Sentenced to 72 Months for Mail TheftRead the Press Release
HONOLULU – Senior District Judge Helen Gillmor yesterday sentenced Davelyn Mahi, 42, a resident of Maui County, to six years imprisonment of 72 months for aggravated identity theft and theft of mail. The Court also sentenced Mahi to a term of one year of community confinement following her release from custody to assist the United States Probation Office in supervising her, and ordered her to pay $8,551.03 in restitution.
Florence T. Nakakuni, U.S. Attorney for the District of Hawaii, said, "The scope of this crime demonstrates the continuing need for vigilance in protecting personal information." Evidence offered in court showed that Mahi stole hundreds of mail items and recovered credit cards and other property over at least a six month time period, which she then used to fraudulently purchase thousands of dollars worth of goods. Mahi’s 230 prior arrests and 36 prior convictions were substantial factors supporting the Court’s decision to impose a sentence of imprisonment above the maximum sentence advised by the United States Sentencing Guidelines.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, "Postal Inspectors worked closely with the U.S. Attorney’s Office and the Maui Police Department on this investigation and will continue to vigorously protect the U.S. mail against all forms of criminal attack and misuse."
The case was prosecuted by Assistant U.S. Attorney Ken Sorenson of the U.S. Attorney’s Office for the District of Hawaii.
Mandeville Postal Worker Indicted for Theft of Mail and Misappropriation of Postal FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANGELA MITCHELL, age 40, of Mandeville, was indicted today for Theft of Mail and Misappropriation of Postal Funds.
According to the Indictment, as a result of a complaint from the Postmaster of the Mandeville Post Office regarding several suspicious transactions, the Office of Inspector General for the United States Postal Service (“Postal OIG”) initiated an investigation into MITCHELL and determined that MITCHELL was voiding Postage Validation Imprinter (“PVI”) labels and issuing refunds without completing the proper paperwork for the PVI refunds. MITCHELL was also indicted for stealing a credit card from a post office box and using it without authorization.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, MITCHELL faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service, Office of Inspector General in investigating this matter. Assistant U. S. Attorney Brian M. Klebba, Chief of the Fraud Unit, is in charge of the prosecution.
Manassas Man Sentenced to 11 Years for Providing Material Support to ISILRead the Press Release
ALEXANDRIA, Va. – Ali Shukri Amin, 17, of Manassas, Virginia, was sentenced today to 136 months in prison, followed by a lifetime of supervised release and monitoring of his internet activities, for conspiring to provide material support and resources to the Islamic State in Iraq and the Levant (ISIL), a designated foreign terrorist organization.
“Today’s sentencing demonstrates that those who use social media as a tool to provide support and resources to ISIL will be identified and prosecuted with no less vigilance than those who travel to take up arms with ISIL,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “The Department of Justice will continue to pursue those that travel to fight against the United States and our allies, as well as those individuals that recruit others on behalf of ISIL in the homeland.”
“Ali Shukri Amin is a young American who used social media to provide material support to ISIL,” said John Carlin, Assistant Attorney General for National Security. “ISIL continues to use social media to send their violent and hateful message around the world in an attempt to radicalize, recruit and incite youth and others to support their cause. More and more, their propaganda is seeping into our communities and reaching those who are most vulnerable. The Department of Justice will continue to use all tools to disrupt the threats that ISIL poses, and our efforts will be furthered by parents and other members of our community willing to take action to confront and deter this threat wherever it may surface.”
“Today marks a personal tragedy for the Amin family and the community as we have lost yet another young person to the allure of extremist ideology focused on hatred,” said Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office. “Amin’s case serves as a reminder of how persistent and pervasive online radicalization has become. The FBI, through our Joint Terrorism Task Forces, remains dedicated to protecting the United States against the ongoing violent threat posed by ISIL and their supporters.”
“Observations made by school staff and subsequent follow-up by the School Resource Officer were some of the earlier indicators of suspicious behavior regarding this individual,” said Stephan Hudson, Chief of Prince William County Police Department. “Those observations were quickly relayed to our partners with the JTTF who acted upon this information very quickly. We greatly appreciate that these observations were observed and reported to the proper authorities proved to be instrumental in the overall investigation in stopping a dangerous network such as ISIL from further infiltrating our community.”
Amin pleaded guilty on June 11, 2015. According to court documents, Amin admitted to using Twitter to provide advice and encouragement to ISIL and its supporters. Amin, who used the Twitter handle @Amreekiwitness, provided instruction on how to use Bitcoin, a virtual currency, to mask the provision of funds to ISIL, as well as facilitation to ISIL supporters seeking to travel to Syria to fight with ISIL. Additionally, Amin admitted that he facilitated travel for Reza Niknejad, an 18-year-old Prince William County resident who traveled to Syria to join ISIL in January 2015. Niknejad was charged on June 10, 2015, in the Eastern District of Virginia with conspiring to provide material support to terrorists, conspiring to provide material support to ISIL, and conspiring to kill and injure people abroad.
U.S. District Judge Claude M. Hilton presided over the case and delivered the sentence. This case was investigated by the Joint Terrorism Task Force of the FBI’s Washington Field Office. Assistant U.S. Attorney Michael P. Ben’Ary and Special Assistant U.S. Attorney Caroline H. Friedman prosecuted the case. Substantial assistance was provided by Trial Attorney Stephen Sewell of the National Security Division's Counterterrorism Section.
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. 1:15-cr-164.
Lobbying Firm Agrees to Pay $125,000 Civil Penalty for Violating Lobbying Disclosure ActRead the Press Release
WASHINGTON – Carmen Group, a lobbying firm based in Washington, D.C., has agreed to pay a civil penalty of $125,000 in order to resolve allegations that it repeatedly failed to file lobbying and contribution disclosure reports that are required by the Lobbying Disclosure Act (LDA), Acting U.S. Attorney Vincent H. Cohen, Jr. announced today.
The settlement was reached after the U.S. House of Representative and Senate referred Carmen Group to the U.S. Attorney's Office for the District of Columbia. It represents the second resolution of LDA violations this year and the largest civil penalty settlement under the LDA to date. In January 2015, Alan Mauk Associates Ltd. agreed to pay a $30,000 civil penalty in order to resolve similar claims. In 2013, the United States secured a $200,000 default judgment against Biassi Business Services Inc. for that firm’s violations of the LDA.
“The American public has a right to know about the efforts of paid lobbyists to influence legislative and executive decision-making,” said Acting U.S. Attorney Cohen. “Lobbyists who fail to report their activities thwart the purpose of the Lobbying Disclosure Act and remove transparency from the legislative process. This settlement reflects our determination to seek significant penalties from repeat offenders who fail to meet their reporting obligations.”
The U.S. Attorney’s Office for the District of Columbia has the unique responsibility of enforcing the LDA and its reporting requirements. The office notifies all of the referred firms and individuals that they must comply with the LDA and informs them of potential civil and criminal penalties. The office pursues LDA penalties against lobbyists that continue to be noncompliant in their filing practices.
Carmen Group was accused of failing to file some of its quarterly reports regarding its lobbying activities. In addition, some of the individual lobbyists who were registered to work on behalf of Carmen Group’s clients were accused of violating the LDA by failing to file some of their semiannual reports regarding their political contributions.
In settling the case, Carmen Group denied that it ever knowingly violated the LDA. The firm has now complied fully with its outstanding reporting obligations.
Acting U.S. Attorney Cohen commended the work of those who handled the case for the U.S. Attorney’s Office, including Assistant U.S. Attorney Jennifer A. Short.
Liberty Lake Man Sentenced to Five Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Tristan James Fillback, age 28, of Liberty Lake, Washington, was sentenced after having previously pled guilty on May 5, 2015 to Distribution of Child Pornography. United States District Court Judge Salvador Mendoza Jr. sentenced Fillback to a five year term of imprisonment, to be followed by a fifteen year term of court supervision after he is released from Federal prison. In addition, Fillback was ordered to forfeit to the United States the computers and thumb drive that he used to distribute child pornography. Fillback was also ordered to pay $1,000 in restitution to one of his victims. Fillback will also be required to register as a sex offender.
According to information disclosed during the court proceedings, Fillback was using a Peer to Peer file sharing account to share and distribute child pornography images over the Internet. Undercover law enforcement agents located child pornography files Fillback was making available for download and later obtained a federal search warrant for Fllback’s residence. On January 23, 2014, Homeland Security Investigation agents executed a federal search warrant at Fillback’s residence and seized Fillback’s digital devices that he used to distribute child pornography. A forensic examination of Fillback’s personal computers and thumb drive revealed 649 images of child pornography and 14 child pornography video files.
Michael C. Ormsby stated, “The United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. In addition, prosecuting offenders who distribute child pornography is one of the top priorities of the United States Attorney’s Office.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by Homeland Security Investigations. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and Project Safe Childhood Coordinator for the Eastern District of Washington.
Kenyan National Sentenced to 15 Years for Conspiring to Provide Material Support to Foreign Terrorist OrganizationsRead the Press Release
Mohamed Hussain Said, 27, a citizen and resident of Nairobi, Kenya, was sentenced to 15 years in prison by U.S. District Judge Ursula Ungaro of the Southern District of Florida for conspiring to provide material support to three separately designated Foreign Terrorist Organizations, al-Qa’ida, al-Qa’ida in Iraq/al-Nusrah Front (AQI/al-Nusrah Front) and al-Shabaab.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
On May 28, 2015, Said pleaded guilty to count one of an indictment charging him with conspiracy to provide money and recruits to al-Qa’ida, AQI/al-Nusrah Front in Syria and al-Shabaab in Somalia. During the conspiracy, Said received a series of wire transfers from co-conspirator Gufran Ahmed Mohammed for the purpose of supporting al-Shabaab, and recruited experienced al-Shabaab fighters for AQI/al-Nusrah Front to fight in the conflict in Syria. Additionally, Said tried to recruit other individuals for attacks within the United States.
Assistant Attorney General Carlin joined U.S. Attorney Ferrer in commending the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Brian K. Frazier and Ricardo A. Del Toro of the Southern District of Florida and Trial Attorney Jolie F. Zimmerman of the National Security Division’s Counterterrorism Section.
Jury Convicts KC Man of Drug Trafficking, Money Laundering ConspiraciesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of his role in conspiracies to distribute methamphetamine in Jackson County, Mo., and to engage in money laundering.
Travis Ybarra, also known as “HoodNutt,” 27, of Kansas City, was found guilty of participating in a conspiracy to distribute methamphetamine from Jan. 1, 2009, to Dec. 11, 2012. Ybarra was also found guilty of participating in a money-laundering conspiracy that involved proceeds of drug trafficking.
In July 2011, the Jackson County Drug Task Force began an investigation into a drug-trafficking organization distributing methamphetamine in the Kansas City, Mo., area. Ybarra and co-defendant John Martinez, also known as “Whisper,” 33, of Kansas City, Mo., were partners who supplied methamphetamine to mid-level distributers, who then sold the methamphetamine to others.
Martinez was sentenced on Feb. 10, 2015, to 12 years and six months in federal prison without parole, after pleading guilty to the same charges.
Ybarra directly supplied methamphetamine to co-defendant Ronald Wayne Ivy, also known as “Wayno” or “Big Homie,” 42, of Grandview, Mo., and others. Officers made undercover drug purchases from some mid-level distributors, who had obtained their methamphetamine from Ivy. When law enforcement officers executed a search warrant at Ivy’s residence on Aug. 20, 2012, they seized more than $30,000 (the proceeds of drug sales), multiple firearms and more than 500 grams of methamphetamine that Ivy had obtained from Ybarra.
Ivy was sentenced on Feb. 3, 2014, to 25 years in federal prison without parole after pleading guilty to his role in the drug-trafficking and money-laundering conspiracies. The court also ordered Ivy to forfeit to the government $211,200, which represents the proceeds of the drug-trafficking conspiracy for which he was responsible (based on a conservative street price of $1,200 an ounce and distribution of at least 15 kilograms of methamphetamine through the overall conspiracy).
Evidence introduced during the trial indicated that Ybarra sold co-defendant Damon Ray Schultz, also known as Richard Boone, 33, of Independence, Mo., a half-pound of methamphetamine for $10,000 on Feb. 29, 2012. Agents also intercepted conversations between Ybarra and various co-defendants starting on Aug. 5, 2012, regarding a methamphetamine transaction. Ybarra supplied methamphetamine to Stephanie Jo Cain, also known as “Baraka,” 26, of Kansas City, Mo., who, in turn, provided the methamphetamine to Lindsey Dell Brown, 26, of Kansas City, Mo. When Brown’s customer didn’t pay for the methamphetamine, Ybarra attempted to obtain the money he was owed.
Schultz, Cain and Brown are among 16 co-defendants who have pleaded guilty.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours over two days before returning the guilty verdicts to U.S. Chief District Judge Greg Kays, ending a trial that began Tuesday, Aug. 25, 2015.
Under federal statutes, Ybarra is 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 $10.5 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades and Special Assistant U.S. Attorney Adam Caine. It was investigated by the Drug Enforcement Administration, the Independence, Mo., Police Department, the Jackson County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts 2 Men in Multiple Violent Robberies in and Around HoustonRead the Press Release
HOUSTON – Two men have been convicted on all federal counts as charged, to include the violent robberies of mobile phone stores and related firearms charges, announced U.S. Attorney Kenneth Magidson. The federal jury convicted Clarence Buck, 33, of Humble, and Kendall Allen, 24, of New Orleans, on all 14 and 11 counts, respectively, following an eight-day trial and approximately six hours of deliberation.
Both men were convicted conspiracy to interfere with commerce by robbery and five counts each of aiding and abetting interference with commerce by robbery and aiding and abetting using and carrying a firearm during and in relation to a crime of violence. Buck was also convicted of being a felon in possession of a firearm as well as an additional count of aiding and abetting interference with commerce by robbery and an additional count of aiding and abetting using and carrying a firearm during and in relation to a crime of violence.
Over the course of the trial, the government presented 19 witnesses and 96 evidentiary exhibits, which included surveillance videos, photos, cell phone tower analysis as well as specific firearms believed used in the crimes and items of jewelry and cell phones stolen in the crimes.
According to the prosecution, on at least three occasions in November 2012, Buck assembled various crews to rob T-Mobile stores, stealing approximately 750 phones with a total approximate value of nearly $350,000. He also assembled a crew to rob the Houston Bargain Center which resulted in losses of approximately $500,000. After each robbery, Buck would sell the phones and other items and distribute the proceeds among the crews.
The first occurred on Nov. 2, 2012, when Buck assembled a crew to rob the location at 10961 North Freeway. Buck conducted surveillance outside, while three others entered the store. Allen and Deandre White were carrying handguns as they herded customers and store employees into a back room at gun point. A total of 314 phones were stolen. White, 23, of Houston, previously pleaded guilty in a related case and was sentenced to a term of federal imprisonment of 188 months.
Four days later, on Nov. 6, 2012, Buck assembled a crew to rob the T-Mobile store located at 5819 Gulf Freeway. Buck again conducted surveillance, while White and Allen executed the robbery. Allen carried an AR-15 assault rifle, while White carried handgun. Customers and employees were forced into a back room at gun point, while 282 phones were taken.
On Nov. 13, 2012, Buck and a crew he had assembled targeted the T-Mobile store located at 2902 North Shepard. Allen and White again entered the store armed with handguns, while Buck was outside conducting surveillance. During the course of this robbery, testimony revealed Allen exited the store and assaulted a customer outside, wrestled him to the ground and attempted to drag him into the store. Customers and store employees were again held at gun point while they stole 149 phones.
Then on Nov. 23, 2012, Buck assembled another crew and targeted the Houston Bargain Center located at 10022 Homestead Road. Buck was outside, while nine masked men, including Allen - armed with an AR-15 assault rifle - entered the store and forced employees and customers to the ground. The robbers broke more than 15 glass display cases with hammers and removed the jewelry inside of them. The owners of the stores that were robbed reported a loss of more than $500,000. A search warrant was executed Nov. 28, 2012, at Buck’s residence in Humble which resulted in the recovery of a number of the items of jewelry stolen, more than $29,000 in cash and the AR-15 rifle used by Allen in the robbery.
The jury also heard that Buck was initially charged in state court, but posted bond. Authorities observed Buck as he assembled a crew that later committed a robbery of the T-Mobile store located at 8498 Sam Houston Parkway. He was arrested again July 24, 2013.
Buck’s defense attempted to convince the jury that he was not involved in the robberies or gun offenses. He claimed he only acted as a fence hired by others to sell the stolen property. Allen also tried to tried to tell the jury he was not involved. They were unconvinced and found both men guilty as charged.
As a result, these men face incredible sentences. For the conspiracy and aiding and abetting the robberies, the possible sentence is up to 20 years in federal prison. Buck also faces up to 10 years for being a felon in possession. Upon the first aiding and abetting firearms conviction, both men face a mandatory seven years which must be served consecutively to any other prison term imposed. Moreover, for each subsequent firearms conviction, they must serve 25 years in prison, each of which must be served consecutively to each other, to the first firearms conviction and to the underlying robbery charge. In short, the minimum sentence Buck and Allen face is 132 and 107 years in federal prison, respectively.
U.S. District Judge David Hittner presided over the trial and has set sentencing for Nov. 24, 2015, at 2:00 p.m. They will remain in custody pending that hearing.
Several others have previously pleaded guilty for their respective roles in the robbery conspiracy. Those include Michael George, 34, Russell Parker, 42, Shelton Watterson, 29, Danny Moore, 49, Son-Tanna Hewitt, 29, and Donald Holmes, 46, all of Houston; and Zeeshan Yasin, 24, and Rafey Khan, 25, of Karachi, Pakistan, but who resided in Houston.
The charges are the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Houston Police Department, the U.S. Marshals Service and the Harris County Sheriff’s Office. Assistant U.S. Attorneys Richard D. Hanes and Jennie Basile are prosecuting the case.
Joint Statement by the Department of Justice and the Office of the Director of National Intelligence on the Declassification of the Renewal of Collection Under Section 215 of the USA Patriot Act as Amended by the USA Freedom ActRead the Press Release
On Aug. 27, 2015, the Foreign Intelligence Surveillance Court (FISC) issued a primary order approving the government’s application to renew the Section 215 bulk telephony program. The USA FREEDOM Act of 2015 banned bulk collection under Section 215 of the USA PATRIOT Act, but provided a new mechanism to allow the government to obtain data held by the providers. To ensure an orderly transition to this new mechanism, the USA FREEDOM Act provided for a 180-day transition period during which the existing National Security Agency (NSA) bulk telephony metadata program may continue. After considering an application filed shortly after the passage of the USA FREEDOM Act, on June 29, 2015, the court held that the continuation of the NSA’s bulk telephony metadata program during the transition period remains consistent with both the statute and the Fourth Amendment. The authority under the court’s June 29 order was set to expire today, Aug. 28, 2015.
The government recently filed an application to renew the authority to collect bulk telephony metadata. On Aug. 27, 2015, the court authorized the continued collection of telephony metadata through Nov. 28, 2015, the end of the 180-day transition period contemplated by the USA FREEDOM Act. As of Nov. 29, 2015, both the 180-day transition period and the court’s authorization will have expired and the bulk collection of telephony metadata pursuant to Section 215 will cease.
As previously stated in a July 27, 2015, Joint Statement, the NSA has determined that analytic access to the historical metadata collected under Section 215 (any data collected before Nov. 29, 2015) will also cease on Nov. 29, 2015. However, solely for data integrity purposes to verify the records produced under the new targeted production mechanism authorized by the USA FREEDOM Act, the NSA, subject to court approval, plans to allow technical personnel to continue to have access to the historical metadata for an additional three months. Separately, the NSA remains under a continuing legal obligation to preserve its bulk 215 telephony metadata collection until civil litigation regarding the program is resolved, or the relevant courts relieve NSA of such obligations. The telephony metadata preserved solely because of preservation obligations in pending civil litigation will not be used or accessed for any other purpose, and, as soon as possible, the NSA will destroy the Section 215 bulk telephony metadata upon expiration of its litigation preservation obligations.
As background, in January 2014, early last year in a speech at the Department of Justice, President Obama announced that the intelligence community would end the Section 215 bulk telephony metadata program as it previously existed. The President directed the intelligence community and the Attorney General to develop options for a new approach to match the capabilities and fill gaps that the Section 215 program was designed to address without the government holding this metadata. After carefully considering the available options, the President announced in March 2014 that the government should not hold this data in bulk, and that the data should remain at the telephone companies with a legal mechanism in place that would allow the government to obtain data pursuant to individual orders from the FISC approving the use of specific numbers for such queries.
The President also noted, however, that legislation would be required to implement this new approach and the administration worked closely with Congress to enact the President’s proposal. On June 2, 2015, Congress passed and President Obama signed the USA FREEDOM Act of 2015, which reauthorized several important national security authorities; banned bulk collection under Section 215 of the USA PATRIOT Act, under the pen register and trap and trace provisions found in Title IV of FISA, and pursuant to National Security Letters; and adopted the new legal mechanism proposed by the President.
As in past primary orders in effect since February 2014, and consistent with the President’s direction, the court’s new primary order requires that during the transition period, absent a true emergency, telephony metadata can only be queried after a judicial finding that there is a reasonable, articulable suspicion that the selection term is associated with an approved international terrorist organization. In addition, the query results must be limited to metadata within two hops of the selection term instead of three.
The Office of the Director of National Intelligence will post the new primary order to its website and icontherecord.tumblr.com after it has undergone a classification review.
The new primary order is available here and icontherecord.tumblr.com.
FISC Primary Order
Houston Man Sentenced on Gun ChargeRead the Press Release
HOUSTON – A Houston man arrested earlier this year following his social media posts regarding ISIS has been ordered to federal prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Kenneth Magidson. Frederick Remon Robinson, 46, pleaded guilty June 3, 2015.
Today, U.S. District Judge Sim Lake ordered he serve 30 months in federal prison to be immediately followed by three years of supervised release.
Robinson was arrested in April 2015 following an investigation launched after he publicly posted several messages on various social media sites such as Twitter. Those posts claimed such comments as “if white people hate ISIS so much, then I like ISIS. The enemy of my enemy is my friend. #chopthemheadsoff Amerikkka is the Black Man’s Foe.” He further tweeted such statements as “I say, don’t hesitate – start shooting in their cars. empty whole clips. find them at home and fire bomb it. anything., do something.”
Robinson also posted pictures of firearms he owned and demonstrated how to load firearms in videos he posted online. Robinson had previously been convicted in Harris County of possession of a controlled substance with the intent to deliver. At the time of his plea, Robinson admitted he possessed a Heckler & Koch, model VP9, 9mm caliber pistol and a Smith & Wesson, model MP-15, .223 caliber rifle. As a convicted felon, he is prohibited from possessing a firearm per federal law.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by a joint federal task force that includes the Bureau of Alcohol Tobacco, Firearms and Explosives and the FBI. Assistant U.S. Attorney Alamdar S. Hamdani is prosecuting the case.
He’s at It Again: Turtle-Egg Thief Convicted A Second Time for Stealing Nested Sea Turtle Eggs from Coastal Georgia IslandRead the Press Release
BRUNSWICK, GEORGIA- Lewis Jackson, 60, of Brunswick, Georgia pled guilty today before Chief United States District Court Judge Lisa Godbey Wood to stealing loggerhead sea turtle eggs in violation of the Lacey Act. Among other things, the Lacey Act makes it unlawful for any person to acquire, receive and transport loggerhead sea turtle eggs, as loggerheads are endangered species under federal law. Back in 2013, Jackson was convicted a first time for stealing turtle eggs, and was sentenced to serve 6 months in prison. Jackson was on federal supervised release when he was caught stealing turtle eggs for the second time.
According to evidence presented during today’s guilty plea hearing, on July 6, 2015, a Wildlife Technician with the Georgia Department of Natural Resources Sea Turtle Program discovered that 84 loggerhead sea turtle eggs from a nest on Sapelo Island, Georgia were missing. Law enforcement determined that one of the visitors to the island that day was Jackson, who had stolen over 150 loggerhead turtle eggs in 2012. The next day, on July 7, Jackson was arrested trying to leave the island with a cooler full of sea turtle eggs. Jackson appeared to have wrapped the eggs with the intent to sell them. Loggerhead eggs now fetch as much as $25 per egg on the black market. Because of Jackson’s handling of the turtle eggs, they were no longer viable and were therefore destroyed. Sea turtles are long-lived and slow to reach maturity. Pressures from the illegal harvesting of eggs and the poaching of adults worsen the extinction risk faced by these animals. In Georgia, the loggerhead sea turtle is listed as “threatened” under the Endangered Species Act and is the most common sea turtle which nests on Sapelo Island.
In 2013, Jackson was sentenced to 6 months in prison and 2 years of supervised release. For his second conviction, he faces a maximum of 5 years in prison and a $250,000 fine. A new sentencing date will be set after the United States Probation Office conducts a presentence investigation. Jackson remains in the custody of the United States Marshals pending his sentencing.
United States Attorney Edward Tarver said, “This defendant has attempted to profit yet again by unlawfully exploiting an endangered species and a national treasure. Since his 6 months was apparently not a sufficient deterrence, we will ask that this defendant be sentenced to serve a significant amount of the next few years in a federal prison.”
Luis Santiago, Special Agent in Charge, Southeast Region, U.S. Fish & Wildlife Service, stated, “We take our mission to support our state counterpart wildlife enforcement agencies very seriously and we will continue to work with our counterparts to concentrate on and aggressively pursue individuals who are involved in the illegal trade of protected species of wildlife.”
This case was investigated by the United States Fish and Wildlife Service, the Georgia Department of Natural Resources, and the United States Probation Office. Assistant United States Attorney E. Greg Gilluly, Jr. is prosecuting the case for the United States. Please direct any additional questions to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Grand Jury Returns 31 Count Superseding Indictment including Rico Charges against Violent YMM GangRead the Press Release
U.S. Attorney Kenneth A. Polite announced that a Superseding Indictment was returned today charging members of a violent New Orleans street gang known as “the Young Melph Mafia” or “YMM” with violating federal racketeering statutes and committing five homicides as well as multiple violations of federal drug and firearm laws. The defendants include: JEFFERY WILSON, age 30; LIONEL ALLEN, a/k/a “Lot,” age 21; JAWAN FORTIA, a/k/a “Tittie” and “Wine,” age 22; DEDRICK KEELEN, a/k/a “Roy,” age 22; DELWIN McLAREN, a/k/a “Poo” and “Poo Stupid,” age 22; and BRYAN SCOTT, a/k/a “Killer,” age 21.
Based upon the ongoing investigation, these defendants, most of whom grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years. During the course of this investigation, it was also determined that the defendants connected to the Young Melph Mafia routinely carried firearms to protect themselves while engaged in distributing illegal narcotics.
ALLEN, KEELEN and FORTIA are facing a mandatory life sentence if convicted of committing a murder in furtherance of racketeering activity, in violation of Title 18, United States Code Section 1959. Attached is a summary of charges and penalties for all defendants.
U.S. Attorney Polite reiterated that the superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department as partners in the metro area’s Multi Agency Gang Unit. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the Multi-Agency Gang (MAG) Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Valuable assistance to the investigation was provided by the United States Customs and Border Protection (CBP) Air and Marine Division. Assistant U.S. Attorneys Maurice Landrieu, Jr. and Edward Rivera are in charge of the prosecution.
Ghanan Man Sentenced for Illegally Reentering the United States After Previous DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced that Kwaku Nsiah, of Ghana, was sentenced to twelve months and a day in federal prison for illegally reentering the United States after having been previously deported. Nsiah will be deported after he serves his sentence.
Nsiah was stopped by the New Hampshire State Police for a driving infraction on March 12, 2015. Nsiah was unable to produce a driver’s license but produced an identification card, issued by the government of Ghana, in the name of Nana Fosu. Nsiah told the trooper that he had entered the United States through JFK International Airport on a visitor visa in November 2014.
Nsiah was arrested for operating without a license and taken to the New Hampshire State Police barracks in Bedford. While being held at the barracks, Nsiah was approached by Immigration and Customs Enforcement agents concerning his status in the United States. Nsiah repeated that his name was Nana Fosu and he entered the United States through New York in 2014. After being advised by the agents that the immigration databases contained no record of any such entry, Nsiah stated he entered the United States illegally through Mexico in 2010.
Subsequent investigation through the use of fingerprint comparisons established Nsiah’s true name, that he had been convicted for distribution of heroin, and that he was previously deported in 1996.
Nsiah pled guilty to the charge on May 21, 2015.
The charge was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. This case was prosecuted by Assistant U.S. Attorney Alfred Rubega.
Former manager of Castalia Farms charged for kickback schemeRead the Press Release
The former manager of Castalia Farms was charged this week for his role in a conspiracy in which he submitted false invoices to his employer in returns for kickbacks and other services from vendors, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Michael K. Conrad, 48, of Castalia, Ohio, was charged with conspiracy and wire fraud via a criminal information.
Conrad managed Castalia Farms, a hospitality facility owned by Owens-Illinois, Inc. and used by the company as a recreational facility. In this capacity, Conrad sometimes had need for industrial equipment or auto repairs. He was a regular customer of an auto dealership where Robert A. Bellamy worked, and was a regular customer of Construction Equipment & Supply, a Sandusky company owned by a person identified as SCW, according to the information.
Beginning in 2001, Conrad engaged in a conspiracy to defraud Owens-Illinois by submitting false and fraudulent invoices, purportedly for services provided related to Castalia Farms. For example, Conrad and SCW submitted invoices to Owens-Illinois for equipment rentals that never occurred, or were far in excess of the time the equipment was rented, or purchase of construction supplies that never occurred, according to the information.
SCW made large sums of money through these fraudulent billings, and would repay Conrad with kickbacks, according to the information.
In another scheme, Conrad and Bellamy submitted false invoices to Owens-Illinois for vehicle repairs that never occurred, repairs to Conrad’s personal vehicles and auto parts never installed on vehicles owned by Owens-Illinois. Conrad received service and parts for his personal vehicles and those of his friends and family paid for by Owens-Illinois, according to the information.
Bellamy has pleaded guilty to his role in the conspiracy. The investigation is ongoing.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Sandusky, Ohio, with the assistance of the Ohio Bureau of Criminal Investigation and the Erie County Sheriff’s Office. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Teacher Charged with Distribution of PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Howard E. Brooks, 37, of Elmira, NY, was arrested and charged by a criminal complaint with possession and distribution of child pornography. The charges carry a mandatory minimum sentence of five years in prison, a maximum of 20 years, and a $250,000 fine.Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that according to the complaint, on February 28, 2015, the Federal Bureau of Investigation determined that a user of an internet account at a residence on Lexington Avenue in Elmira was linked to an online community of individuals who send and receive child pornography online. Subsequent investigation determined that that the user of the account was Brooks, a former teacher at the Elmira Christian Academy School.
The FBI executed a search warrant at the defendant’s residence on July 13, 2015. Brooks was home at the time and told special agents that he flushed three thumb drives down the toilet in an attempt to destroy them. Agents were able to recover the thumb drives. A subsequent forensic analysis determined that the thumb drives contained images of child pornography.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson. Brooks was released on conditions and is due back in court on October 2, 2015 at 9:00 a.m. for a status conference.
The arrest was the culmination of an investigation on the part of the Federal Bureau of Investigation 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.
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.
Former Police Officer and School Administrator Pleads Guilty to Violating Sex Abuse LawsRead the Press Release
LOUISVILLE, Ky. – A Grayson County, Kentucky, former police officer and school administrator pleaded guilty in U.S. District Court to violating federal and state sex abuse laws, announced United States Attorney John E. Kuhn, Jr.
Stephen E. Miller, age 45, pleaded guilty to four counts in a superseding information, on July 30, 2015, and this week Chief Judge Joseph H. McKinley, Jr. accepted the plea and scheduled sentencing for November 2, 2015 at 11:00am in Louisville.
Miller pleaded guilty to engaging in abusive sexual contact with three female students and third degree sodomy with a fourth female student. The incidents occurred at Bluegrass Challenge Academy between February and August 2013.
Miller previously worked as a police officer in Leitchfield, Kentucky. He resigned the position following complaints of inappropriate conduct toward two women. Miller then began working at Bluegrass Challenge Academy, a residential, educational program run by the Kentucky National Guard, located on Fort Knox Military Base. Miller had supervisory authority over the Academy students.
Miller faces a maximum sentence of 11 years in prison, a fine of up to $1,000,000 and at least five years of supervised release.John Smith, who was the director of Bluegrass Challenge Academy during the time, has been indicted for failure to report child abuse.If convicted, he faces a maximum sentence of one year in prison, a fine of up to $100,000, and up to one year of supervised release.
Assistant United States Attorneys Amanda E. Gregory and Stephanie M. Zimdahl are prosecuting the case. The Federal Bureau of Investigation (FBI) with assistance from the Army Criminal Investigation Division conducted the investigation.
Former Monroe Public Works Director Pleads Guilty to BriberyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Hugh Stephen Worley, age 53, of Bethlehem, Georgia entered a plea of guilty on August 28, 2015, to one count of bribery before the Honorable C. Ashley Royal, U.S. District Court Judge, in Athens, Georgia.
Mr. Worley served as Director of Public Works for the City of Monroe in Walton County, Georgia for approximately seventeen years. He was terminated in January of 2013 for “violations of personnel policies and procedures.” One such violation involved the rental of an Asphalt Paver from a local company.
In 2008 or 2009, Sims Paving, Inc., a Monroe business, acquired an Asphalt Paver that could be used for small patching and paving jobs. Mr. Worley went to see the owner, Mr. Sims, about a paver that could be used for smaller jobs, such as paving the driveways in the City of Monroe Cemetery. In 2012, Mr. Sims and Mr. Worley came to a verbal agreement that the City would rent the paver for a total of $20,000 over four months. After the agreement, Mr. Worley told Mr. Sims on four separate occasions that he could use $1,000. He did not tell Mr. Sims about his need for the cash until after the agreed upon Paver rental. Fearful that Mr. Worley would renege on the rental deal, Mr. Sims gathered $1,000 together on the four separate occasions. The Paver was never used to pave the cemetery driveways. It sat idle at a cost of $20,000 to the City of Monroe. Mr. Worley admits he engaged in illegal course of conduct with Mr. Sims.
Mr. Worley will be subjected to up to 10 years of incarceration and a $250,000 fine. He will also have to forfeit up to $28,771.61.
“We count on those who work in local government positions to do their jobs with integrity and recognize that they are the stewards of the citizens’ tax money and trust,” said U.S. Attorney Michael Moore. “Instead of using his skills and resources to help the people of Monroe, Mr. Worley used his position to enrich himself at a cost to the people he was supposed to be serving.”
The case was investigated by the Federal Bureau of Investigation, Athens division. Assistant United States Attorney Danial Bennett is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former JP and Bail Bondsman Sentenced on Federal Extortion ChargesRead the Press Release
LAREDO, Texas – A former Webb County justice of the peace (JP) and a former bail bondsman have been ordered to federal prison following their convictions of conspiracy and extortion under color of official right, announced U.S. Attorney Kenneth Magidson. Former Webb County Precinct 2, Place 2, JP Ricardo Rangel, 49, pleaded guilty Sept. 4, 2014, while former bail bondsman Juan Enrique Rodriguez, 36, entered his plea Dec. 17, 2014.
Today, U.S. District Judge Diana Saldaña ordered Rangel, of Laredo, to serve 37 months in federal prison, while Rodriguez, also of Laredo, was sentenced to a 13-month-term. They will both be required to serve three years of supervised release following completion of their sentences. The court found Rangel had received multiple bribes and was a public official in a high-level decision making or sensitive position at the time he committed the crime and that Rodriguez had paid multiple bribes to have Rangel reduce bonds of criminal defendants. Rangel and Rodriguez were also ordered to pay fines in the amount of $5,000 and $15,000, respectfully.
The investigation established that on or about March 25, 2012, Rangel, while performing his duties as a JP, did knowingly and unlawfully accept $250 not due him or his office from Rodriguez. In turn, Rangel granted a $1,000 surety bail bond on an individual who had been arrested and charged with the Texas State criminal offense of driving while intoxicated.
Both were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the FBI. Assistant U.S. Attorneys Daniel C. Rodriguez and Roberto Ramirez prosecuted the case.
Former Beaver County Woman Charged with Embezzling from her EmployerRead the Press Release
PITTSBURGH - A former resident of Beaver County, Pennsylvania, has been indicted in Pittsburgh by a federal grand jury on charges of mail fraud, United States Attorney David J. Hickton announced today.
The 28-count indictment named Maria P. Makozy, 47, now residing in Port St. Lucie, FL, as the sole defendant.
According to the indictment, Maria P. Makozy embezzled from her former employer, Keymax Settlement Services, to pay for personal credit card expenses using company checks.
The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both at each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Internal Revenue Service-Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Athens-Clarke County Coroner Pleads Guilty to Possession of Stolen FirearmRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Bobby Tribble, age 62, of Athens, Georgia entered a plea of guilty on August 28, 2015 to one count of possession of a stolen firearm before the Honorable C. Ashley Royal, U.S. District Court Judge, in Athens.
In December of 2014, Mr. Tribble was an employee of firearm merchant Franklin’s of Athens. A customer came to purchase a firearm and Mr. Tribble assisted him to complete the transaction according to the Firearm Transfer Record (ATF Form 4473). Shortly thereafter, another Franklin’s employee came across an empty box associated with a Springfield 9mm pistol at the store. When this employee reviewed the ATF Form 4473, he discovered it was supposedly purchased by the customer. The customer, confused as to why Franklin’s had shipped him an empty box for a firearm he did not purchase, contacted the store, bringing the matter to the attention of the management team, the Athens-Clarke Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. An ATF investigation revealed and Mr. Tribble admits that he stole a total of five firearms from Franklin’s of Athens.
Mr. Tribble may face up to 10 years imprisonment, a $250,000 fine, or both. He will be expected to voluntarily surrender his Georgia Peace Officer’s Standards and Trainings (POST) certification
“A man who will steal guns has no business working in a gun store or holding a POST certification,” said U.S. Attorney Michael Moore. “I appreciate the help of the management at Franklin’s and the good work of our local, state and federal partners. Guns in the possession of good, law-abiding people is a positive thing; a gun in the hands of someone who steals it is quite a different matter and will not be tolerated.”
The case was investigated by the Athens-Clarke County Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Atlanta Field Division. Assistant United States Attorney Danial Bennett is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Arkansas State Treasurer Martha Shoffner Sentenced to 30 Months in Prison for Extortion and BriberyRead the Press Release
Little Rock—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and David Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that former Arkansas State Treasurer Martha Ann Shoffner, 71, of Newport, was sentenced to 30 months incarceration in the Bureau of Prisons following her conviction on six counts of extortion under color of official right, one count of attempted extortion under color of official right, and seven counts of receipt of a bribe by an agent of a state government receiving federal funds.
In addition to the term of imprisonment, as part of that sentence handed down Friday by United States District Judge J. Leon Holmes, Shoffner was ordered to pay $31,980 in restitution to the State of Arkansas and a $100 special assessment on each count, for a total assessment of $1,400. The $4,020 in bribe money seized at the time of her arrest was forfeited. Shoffner’s prison term will be followed by two years of supervised release.
"When a public official abuses his or her office and is personally enriched, the trust given by the citizens of Arkansas is violated," Thyer said. "We are satisfied that the Court carefully weighed all appropriate factors in determining the sentence in this case."
"Public corruption betrays the trust that is necessary for our democracy," Resch stated. "The FBI will continue to work with the United States Attorney’s Office to ensure those that participate in public corruption will be held accountable for their actions."
Martha Shoffner was elected as Treasurer for the State of Arkansas in 2006 and 2010. The United States presented testimony that historically, the Treasurer’s Office had used between 8 and 12 bond brokers throughout the state to purchase federal agency bonds for investment. During Shoffner’s first term in office, the bond inventory levels between the brokers was relatively comparable. In mid-2010, Shoffner and Steele Stephens, a broker with St. Bernard Financial, began an arrangement where Stephens made $6,000 payments to Shoffner every six months.
In mid-2010, Stephens made the first $6,000 payment to Shoffner at the State Capitol, resulting in Stephens’ bond inventory increasing above that of other brokers for the State of Arkansas, ultimately reaching over $600 million in bond inventory in August 2012. In total, Stephens received approximately $2 billion in bond business, earning approximately $1,714,889.35 in commissions. Stephens made a total of six payments of $6,000 to Shoffner from mid-2010 through December 2012. Two payments were made at the Capitol, two payments were made at Shoffner’s Little Rock residence, and two payments were made at Shoffner’s home in Newport, Arkansas. Stephens concealed the $6,000 payments in a pie box when he delivered money to Shoffner in Newport.
In January 2013, Stephens began cooperating with the FBI. As part of his cooperation, he recorded a meeting with Shoffner at her home in Newport. In May 2013, Stephens delivered a pie to Shoffner with $6,000 in FBI funds in the pie box. After the broker left Shoffner’s house, Special Agents with the FBI executed a search warrant at the house. Shoffner had taken the cash out of the pie box and placed it in a cigarette box in a kitchen drawer. She also told the FBI that she still had $4,020 from the December 2012 payment hidden in a cigarette box.
Shoffner also received contributions for her November 2010 re-election campaign for Treasurer which she deposited in her campaign account. She had a personal credit card which she used to pay for personal expenses. Shoffner used contributors’ campaign funds to pay for her personal items on her credit card. Ten payments were made to pay her personal credit card between November 5, 2010, and October 9, 2011, ranging in amounts from $200 to $5,000. Shoffner concealed the expenditure of her campaign funds for her personal use.
The charges stemmed from an investigation by the FBI’s ArkTrust Public Corruption Task Force. The ArkTrust Public Corruption Task Force is comprised of FBI Agents, and Task Force Officers from the Arkansas State Police Department, Pulaski County Sheriff’s Office, and the Little Rock Police Department. If you think you see public corruption contact the public corruption hotline at (501) 221-8200.
Floridian Charged in Bankruptcy Fraud SchemeRead the Press Release
PITTSBURGH – A Florida resident has been indicted in Pittsburgh by a federal grand jury on charges of bankruptcy fraud, concealment of bankruptcy assets, false bankruptcy declaration, false statement under oath, and money laundering, United States Attorney David J. Hickton announced today.
The 10-count indictment, returned on August 25, and unsealed today, named Gregory M. Makozy, Sr., 54, as the sole defendant.
According to the indictment, Makozy schemed to defraud the bankruptcy court by concealing assets he owned through pre-Petition and post-Petition transfers of real estate and an automobile. He is also alleged to have laundered fraud proceeds in the purchase of a home in Florida.
The law provides for a total sentence of 40 years in prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Internal Revenue Service-Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five Indicted on Federal Fraud Charges Related to Multi-Million Dollar Pyramid Scheme that Targeted Chinese-American VictimsRead the Press Release
LOS ANGELES – A federal grand jury returned a 14-count indictment late yesterday that charges five defendants with participating in a fraud scheme that generated tens of millions of dollars by soliciting investments in a company that purportedly offered children’s educational courses, but in reality was a pyramid scheme designed to generate revenue by adding new investors.
Members of the conspiracy allegedly made false promises about the company, including claims that it generated substantial revenues from the sale of courses, that investments could be quickly liquidated for significant returns, and that they planned to take the company public through an IPO. In fact, according to the indictment, “the only way for investors to earn any meaningful returns was for them to actively recruit new investors.” The defendants promoted the company through YouTube videos and other postings on the Internet, as well as through meetings with prospective investors and live presentations about the purported investment opportunity.
The indictment alleges that the defendants solicited investments primarily from members of the Chinese-American communities in Los Angeles, San Francisco and New York City.
The five defendants charged in the indictment are:
-
Cheong Wha “Heywood” Chang, 47, formerly of Hacienda Heights and most recently a resident of Taiwan;
-
Chang’s wife, Toni Chen, 46;
-
Wen Chen “Wendy” Lee, 53, of Roland Heights;
-
Daliang “David” Guo, 53, of Hyde Park, New York; and
-
Chih Hsuan “Kiki” Lin, 50, of Los Angeles and Las Vegas.
Kiki Lin will be arraigned on September 4, and the other four are scheduled to be arraigned on different dates the following week.
The five defendants were arrested earlier this month pursuant to a sealed criminal complaint. Lin was ordered detained (held without bond), and the other four were released after posting bonds ranging from $250,000 to $500,000.
During the course of the scheme, which ran from spring 2011 until about a year ago, the defendants were involved in a series of Hong Kong-based companies collectively known as CKB. With other names that included WIN168 Biz Solutions, Ltd.; CKB168 Ltd.; and Cyber Kids Best Education Limited, these companies purportedly generated substantial profits from the sale of web-based children’s educational courses.
The defendants solicited investments in increments of $1,380, which gave investors “Profit Reward Points” they claimed were worth $750 in cash, would increase in value, and were analogous to per-IPO shares of CKB, according to the indictment.
The indictment alleges that the claims made about these investments were fraudulent because:
-
CKB earned little, if any, money from the sale of the children’s educational courses and the overwhelming majority of revenues came from new investors;
-
there was no real way for investors to profit from holding the “Profit Reward Points,” and the only way for investors to obtain any significant returns was to recruit new investors;
-
the CKB entities and their securities were not registered with the U.S. Securities and Exchange Commission; and
-
the CKB entities could not have gone public because they did not have sufficient legitimate revenue to support an IPO.
The indictment alleges that, after the SEC filed a civil enforcement action against them, the defendants attempted to conceal their fraud by preventing the SEC from obtaining relevant documents and information. The indictment also alleges that Kiki Lin made threats to victims she had solicited in order to collect funds from those victims and to dissuade them from making reports to authorities.
The indictment alleges that the defendants collected approximately $30 million from CKB investors. The indictment alleges that the defendants collectively kept approximately $6.5 million of these funds and transferred the rest to others involved in the scheme.
The indictment charges each of the five defendants with one count of conspiracy and 13 counts of wire fraud.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of the charges in the indictment, each defendant would face a statutory maximum sentence of five years in federal prison for the conspiracy count and up to 20 years in prison for each of the wire fraud charges.
This case is the result of an investigation by the Federal Bureau of Investigation.
The Securities and Exchange Commission provided valuable assistance. The SEC previously filed a civil action against the CKB entities and several individual defendants in the United States District Court for the Eastern District of New York (see: https://www.sec.gov/litigation/litreleases/2013/lr22846.htm).
-
Felon Indicted for Possessing Firearm, Ammunition at St. JudeRead the Press Release
Memphis, TN – An Ohio man has been indicted for possessing a firearm and ammunition at St. Jude Children’s Research Hospital. The indictment was announced today by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.
An affidavit indicates that in March 2015, Memphis police officers responded to an aggravated assault call at St. Jude. The defendant, 29-year-old Aaron Cauley, had allegedly threatened the life of his child’s mother while they were inside of a patient room.
Cauley and his child’s mother were engaged in a heated argument when he pointed a pistol and threatened to kill her, according to the affidavit. Afraid for her life, the victim alerted St. Jude security of the occurrence. Security subsequently notified Memphis police officers, who arrived on the scene and detained Cauley. Officers reportedly located a knife in the defendant’s pants pocket while searching him.
The affidavit also indicates that security discovered a green backpack hidden under some children’s clothing in the patient room where the alleged incident occurred. A
Sig Sauer 9mm pistol and 56 rounds of 9mm ammunition were found in the backpack. Two hunting knives were also found, according to the affidavit.
Cauley is charged with being a felon in possession of a firearm and ammunition. If convicted, he faces up to life in federal prison. He also faces up to $250,000 in fines.
The case is being investigated by the Memphis Police Department and Project Safe Neighborhoods.
Special Assistant U.S. Attorney Dean DeCandia is prosecuting this case on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Felon Indicted for Possessing Firearm, Ammunition at St. JudeRead the Press Release
Memphis, TN – An Ohio man has been indicted for possessing a firearm and ammunition at St. Jude Children’s Research Hospital. The indictment was announced today by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.
An affidavit indicates that in March 2015, Memphis police officers responded to an aggravated assault call at St. Jude. The defendant, 29-year-old Aaron Cauley, had allegedly threatened the life of his child’s mother while they were inside of a patient room.
Cauley and his child’s mother were engaged in a heated argument when he pointed a pistol and threatened to kill her, according to the affidavit. Afraid for her life, the victim alerted St. Jude security of the occurrence. Security subsequently notified Memphis police officers, who arrived on the scene and detained Cauley. Officers reportedly located a knife in the defendant’s pants pocket while searching him.
The affidavit also indicates that security discovered a green backpack hidden under some children’s clothing in the patient room where the alleged incident occurred. A
Sig Sauer 9mm pistol and 56 rounds of 9mm ammunition were found in the backpack. Two hunting knives were also found, according to the affidavit.
Cauley is charged with being a felon in possession of a firearm and ammunition. If convicted, he faces up to life in federal prison. He also faces up to $250,000 in fines.
The case is being investigated by the Memphis Police Department and Project Safe Neighborhoods.
Special Assistant U.S. Attorney Dean DeCandia is prosecuting this case on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Federal, State and Local Law Enforcement Agencies Announce the Largest Methamphetamine Distribution Takedown in Okeechobee County HistoryRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Paul C. May, Sheriff, Okeechobee County Sheriff’s Office, John J. Burke, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Fort Myers Regional Operation Center-Sebring Field Office, and Susan Benton, Sheriff, Highlands County Sheriff’s Office (HCSO) announce the filing of federal charges against 15 defendants for their alleged participation in a conspiracy to distribute controlled substances, specifically methamphetamines, in and around Okeechobee and Highlands Counties. The defendants have been charged in a single indictment in the matter of United States v. Steven Lee Oakes, et. al., 2015-CR-14046-Martinez. In addition to the federal indictment, 29 individuals have been charged by the Office of the State Attorney, 19th Judicial Circuit of Florida for their alleged participation in a related conspiracy to commit narcotics involved racketeering offenses. This coordinated takedown to combat the drug epidemic is one of the largest in the history of Okeechobee and Highlands Counties.
United States Attorney Wifredo A. Ferrer stated, “The continued collaboration between federal and local law enforcement agencies to attack drug trafficking activity is of paramount importance. Methamphetamines continue to poison our communities at alarming rates. Today’s indictment demonstrates that we are dedicated to protecting the public’s safety and improving the quality of life for law-abiding residents of South Florida by adopting proactive law enforcement initiatives. We will continue to work with our State partners to prosecute individuals whose criminal conduct infects our communities.”
“Cooperative law enforcement is the enemy of these drug rings,” said DEA Special Agent in Charge A.D. Wright. “These indictments and arrests demonstrate the commitment DEA has to combating organized networks that traffic drugs in our neighborhoods. We would like to commend the federal and local law enforcement officers who worked side by side with the DEA. We believe that citizens should be protected from rampant drug dealing and other criminal activity in their communities.”
“This operation illustrates the value of bringing the assets of Federal, State, County and Municipal agencies together in a coordinated investigative effort for maximum impact on an insidious and destructive threat to public safety. FDLE is pledged to support any effort to attack methamphetamine and the host of other illicit drugs that threaten the safety of our residents and visitors,” said FDLE Special Agent in Charge John J. Burke.
Sheriff Susan Benton, HCSO, stated, “As we see the direct link between property crimes and the use of methamphetamines; this significant, large scale investigation will certainly impact local crime and our citizens will be safer as a result. Thank you to our partners at the state and federal level for the help they provide to local residents.”
The federal indictment charges 15 defendants in the Southern District of Florida for their alleged participation in a methamphetamine distribution conspiracy. Charged in the ten count indictment are Steven Lee Oakes, a/k/a “Wildman,” 59, of Davenport, Jetta Lyn Frake, 45, of Lorida, Lacy Junior Locklear, 47, of Davenport, Stephen Patrick Hall, Jr., 35, of Dundee, Daniel John Alsdorf, 58, of Okeechobee, James Ledger Carter, a/k/a “Buddy,” 61, of Lake Port, Teresa Lee Green, 45, of Okeechobee, Tanner Lyn Carter, 22, of Lake Port, Felisha Michelle Leitner, 28, of Okeechobee, David Allen Sparks, 49, of Okeechobee, Jamie Lea Hewitt, 35, of Okeechobee, Jessica Marie Bell, 28, of Okeechobee, Vickie Lynn Johnson, 47, of Okeechobee, Travis Wayne Carr, 23, of Okeechobee, and Timothy Dale Reid, 49, of Okeechobee.
The indictment alleges that all fifteen defendants conspired to distribute 50 grams or more of methamphetamine from as early as July 2014 and continuing to and including August 6, 2015, in Okeechobee and Highlands Counties, in the Southern District of Florida, and other locations, in violation of Title 21, United States Code, Sections 841(a)(1) and 846.
In addition to the conspiracy charge, a number of defendants were also indicted for possession with intent to distribute methamphetamine, in various amounts up to 50 grams or more, in violation of Title 21, United States Code, Section 841(a)(1).
- Steven Lee Oakes was charged with possession with intent to distribute 5 grams or more of methamphetamine on October 8, 14, and 28 of 2014, December 5, 2014 and April 26, 2015. Oakes was also charged with possession with intent to distribute 50 grams or more of methamphetamine on December 17, 2014.
- Lacy Junior Locklear was charged with possession with intent to distribute 5 grams or more of methamphetamine on April 26, 2015.
- Daniel John Alsdorf was charged with possession with intent to distribute 5 grams or more of methamphetamine on April 28, 2015.
- Teresa Lee Green was charged with possession with intent to distribute a mixture or substance containing a detectible amount of methamphetamine on March 10, 2015.
- Vickie Lyn Johnson was charged with possession with intent to distribute 5 grams or more of methamphetamine on March 31, 2015.
During the course of the investigation, law enforcement seized a significant amount of methamphetamine.
This case was the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
The federal indictment is being prosecuted by Assistant U.S. Attorney Courtney L. Coker and Special Assistant United States Attorney Ryan L. Butler. The state matters are being prosecuted by Assistant State Attorney Ashley Albright.
If convicted in federal court, the defendants face the following possible statutory sentences: a mandatory minimum of ten years and up to life in prison for the conspiracy to distribute and/or possession with intent to distribute 50 grams or more of methamphetamine; a mandatory minimum of five years and up to forty years in prison for possession with intent to distribute five grams or more of methamphetamine; and up to twenty years in prison for possession with intent to distribute a mixture or substance containing a detectible amount of methamphetamine.
Mr. Ferrer commended the collaborative efforts of the U.S. Attorney’s Office for the Middle District of Florida and the Okeechobee County Office of the State Attorney. Mr. Ferrer thanked the OCDETF law enforcement agencies that assisted with this multi-faceted investigation, including the DEA, Okeechobee County Sheriff’s Office Narcotics Task Force, FDLE’s Fort Myers Regional Operations Center Sebring Field Office, HCSO, the Okeechobee Police Department, Glades County Sheriff’s Office, Saint Lucie County Sheriff’s Office, Fort Pierce Police Department, the Fort Pierce Offices of the United States Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HIS), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Port Saint Lucie Police Department, Martin County Sheriff’s Office, United States Border Patrol, and Indian River County Sheriff’s Office
An indictment and state charging instruments are only accusations and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Whistleblower Retaliation Lawsuit DismissedRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that United States District Court Judge Thomas O. Rice dismissed a disability discrimination and whistleblower retaliation lawsuit brought by a former federal employee of the Department of Agriculture.
According to information disclosed during the court proceedings, Wendy Alguard, of Yakima, Washington, sued the Department of Agriculture (USDA) claiming that the Agricultural Marketing Service, where Alguard worked as a commodity food grader, had reassigned her after she reported that Snokist cannery was hiding totes of moldy applesauce in 2011. Alguard claimed that the USDA had ignored her disability and then punished her for whistleblowing, by reassigning her and eventually removing her from federal service when she refused a directed reassignment. Alguard initially brought administrative claims before the Office of Special Counsel (OSC), the USDA’s EEO Office, and the Merit System Protection Board (MSPB). She withdrew her claim with the OSC and her claim was rejected by the USDA and MSPB. Alguard’s lawsuit sought review of those decisions. She sought damages of about $600,000.
Judge Rice had earlier dismissed Alguard’s discrimination claim of alleged disability in October of 2014, which claim had previously been denied by USDA’s EEO Office. On August 20, 2015, Judge Rice dismissed the remaining claim, which claim sought review of the MSPB’s decision that found that the USDA had legitimately reassigned Alguard when revenue at the USDA’s Yakima facility dropped. Judge Rice found that the MSPB had applied the proper standard for determining such cases, that the MSPB’s decision was not arbitrary or capricious, that the MSPB applied the law correctly, and that the MSPB’s decision was supported by substantial evidence.
Michael C. Ormsby stated, “I commend the outstanding efforts of the lawyers who defended this case. Claims of employment discrimination and whistleblowing in federal employment are taken seriously. But when lawsuits that lack merit are brought, this office will vigorously defend those suits in an effort to protect the public purse.”
This case was defended by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington, with assistance from Zoey Kohn, Marissa Suarez, and Sarah Tuck, attorneys with the USDA’s Office of General Counsel.
Federal Jury Convicts Three Members of the Ride or Die GangRead the Press Release
U.S. Attorney Kenneth Polite announced today that a federal jury has convicted DELOYD JONES, age 23, BYRON JONES, age 24, and SIDNEY PATTERSON, age 24, all of New Orleans, following an 8-day trial.
DELOYD JONES was convicted of 11 of 13 counts. Specifically, Conspiracy to Violate RICO; Conspiracy to Distribute Controlled Substances; Conspiracy to Possess Firearms; Murder in the Aid of Racketeering (2 counts – murders of Devin Hutton and Corey Blue); Causing Death through the Use of a Firearm (2 counts); Assault with a Dangerous Weapon in Aid of Racketeering (2 counts); Use, Carrying, and Discharge of a Firearm during and in Relation to a Crime of Violence and a Drug Trafficking Crime (2 counts). DELOYD JONES faces life plus 35 years in prison.
BYRON JONES was convicted of 9 of 9 counts. Specifically, Conspiracy to Violate RICO; Conspiracy to Distribute Controlled Substances; Conspiracy to Possess Firearms; Murder in the Aid of Racketeering (murder of Travis Arnold); Causing Death through the Use of a Firearm; Assault with a Dangerous Weapon in Aid of Racketeering (2 counts); Use, Carrying, and Discharge of a Firearm during and in Relation to a Crime of Violence and a Drug Trafficking Crime (2 counts). BYRON JONES faces life plus 35 years in prison.
SIDNEY PATTERSON was convicted of 7 of 11 counts, Specifically, Conspiracy to Violate RICO; Conspiracy to Distribute Controlled Substances; Conspiracy to Possess Firearms; Murder in the Aid of Racketeering (murder of Corey Blue); Causing Death through the Use of a Firearm; Assault with a Dangerous Weapon in Aid of Racketeering; Causing Death Through the Use of a Firearm. PATTERSON faces life plus ten years in prison.
U.S. District Judge Susie Morgan set sentencing for December 10, 2015 at 2:00 pm.
“These defendants were responsible for terrorizing the St. Roch community through drug trafficking, threats, and gun violence,” stated U.S. Attorney Polite. “As a result of the MAG Unit’s collaborative efforts, these violent defendants will now spend the rest of their lives in prison. Today’s guilty verdicts are a message to all other violent criminals in our area – like these defendants, you will soon be held accountable for your criminal actions.”
ATF Special Agent In Charge Constance Hester stated, "It is evident, based on the outcome of this trial, that ATF as well as all of our law enforcement partners will vigorously investigate and seek the prosecution of violent criminals in possession of firearms that continually plague the innocent citizens of the New Orleans Metropolitan area."
“We made a commitment to work together to go after the most violent criminals in our city and we continue to deliver on that promise,” said NOPD Superintendent Michael Harrison. “Today’s verdict is the result of a strategic and organized partnership among local, state and federal law enforcement to combat violent crime. I am proud of the hard work of the NOPD-led Multi-Agency Gang Unit that led to this conviction. We will not back down. We will continue to relentlessly pursue those who choose to commit acts of violence and bring them to justice.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Nolan Paige, Marquest Meeks and Special Assistant United States Attorney Brian Ebarb were in charge of the prosecution.
Federal Grand Jury Files Superseding Indictment Charging Andrew Steven Romero with New Offenses Arising Out of Armed Robberies in April and May 2015Read the Press Release
ALBUQUERQUE – A federal grand jury has returned a superseding indictment that adds new charges against Andrew Steven Romero, 28, of Albuquerque, N.M., which arise out of the armed robberies of two Albuquerque-area businesses involved in interstate commerce.
The filing of the superseding indictment was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Romero initially was charged with violating the federal firearms laws in a criminal complaint filed on May 29, 2015. The complaint alleged that Romero unlawfully possessed a firearm and ammunition on May 25 and May 26, 2015, in Bernalillo County, N.M. At the time, Romero was prohibited from possessing either firearms or ammunition because he previously has been convicted of multiple felony offenses, including voluntary manslaughter, tampering with evidence, aggravated assault with a deadly weapon, contributing to the delinquency of a minor, possession of a destructive device by a felon, heroin trafficking, and receiving or transferring a motor vehicle.
On June 9, 2015, a federal grand jury filed a one-count indictment charging Romero with being a felon in possession of a firearm on May 25, 2015, in Bernalillo County. The superseding indictment adds four new counts to the original indictment. Two of the new counts charge Romero with violating the Hobbs Act by robbing two businesses engaged in interstate commerce. The other two new counts charge Romero with brandishing firearms during crimes of violence.
According to the superseding indictment, Romero allegedly committed the armed robbery of the CVS Pharmacy located at 7900 Central Avenue in Albuquerque on April 6, 2015. It also alleges that Romero committed the armed robbery of the Giant convenience store and gas station located at 924 Rio Grande Blvd. NW in Albuquerque on May 26, 2015. Romero allegedly brandished firearms at employees of the two businesses during the two armed robberies.
Romero was arrested on May 26, 2015, on related State charges and is currently in State custody. He will be transferred to federal custody to answer to the federal superseding indictment.
Romero faces up to ten years in federal prison if convicted of being a felon in possession of a firearm. If the court determines that Romero is an armed career criminal, he faces an enhanced sentence of a mandatory minimum of 15 years in prison to a maximum of life imprisonment on that charge. Romero also faces a statutory maximum penalty of 20 years in prison on each of the two Hobbs Act charges. If convicted of brandishing firearms during the robberies, Romero faces a mandatory minimum of seven years for the April 2015 robbery and a mandatory minimum of 25 years for the May 2015 robbery; these sentences must be served consecutive to any sentence imposed on the felon in possession charge and the Hobbs Act charges.
Charges in criminal complaints and indictments are merely accusations. Defendants are presumed innocent unless found guilty in a court of law.
Assistant U.S. Attorneys Kimberly A. Brawley and Jon K. Stanford are prosecuting the federal case, which was investigated by a multi-jurisdictional team that includes the Albuquerque offices of the FBI and ATF, APD and the Multi-Agency Officer Involved Shooting Task Force, which is comprised of officers from APD the Bernalillo County Sheriff’s Office, the New Mexico State Police and the Rio Rancho Police Department. The 13th Judicial District Attorney’s Office assisted in the investigation of the federal case.
Romero is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Federal Court Sentences Muscatine Man for Conspiracy to Distribute CocaineRead the Press Release
DAVENPORT, IA- On August 26, 2015, Pedro Cabrera Lopez, Jr. aka Pedro Lopez Cabrera, Jr., age 39, of Muscatine, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to 120 months in prison on a charge of conspiracy to distribute a controlled substance, announced United States Attorney Nicholas A. Klinefeldt. Cabrera Lopez was also ordered to serve four years of supervised release following the period of imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning about June 2006 and continuing to about July 2007, Cabrera Lopez and his co-conspirators distributed large amounts of cocaine to individuals in Muscatine. The quantity of cocaine distributed in the conspiracy exceeded 2 kilograms.
After he was indicted, Cabrera Lopez went to Mexico for approximately seven years until he was arrested in Texas in November of 2014, and extradited back to Iowa. Cabrera Lopez pleaded guilty on April 22, 2015, to the charge of conspiracy to distribute at least 500 grams of a mixture or substance containing cocaine.
This matter was investigated by the Drug Enforcement Administration and the Muscatine County Drug Task Force, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Ely Man Pleads Guilty to Being an Eight-Time Felon and Unlawful Drug User in Possession of a FirearmRead the Press Release
A man who unlawfully possessed a shotgun pled guilty today in federal court in Cedar Rapids. Matthew Robbins, age 42, from Ely, Iowa, was convicted of one count of being a felon and unlawful drug user in possession of a firearm.
In a plea agreement, Robbins admitted that in 2014 he was an unlawful user of controlled substances, including methamphetamine, and had been convicted of eight felony offenses, namely:
- Conspiracy to Commit Robbery in the Second Degree (Sept. 6, 1991);
- Burglary in the Third Degree (Feb. 10, 1995);
- Dominion and Control of a Firearm as a Felon (Feb. 10, 1995);
- Operating While Intoxicated, Third Offense (Mar. 1, 1995);
- Possession with Intent to Deliver a Controlled Substance (Dec. 4, 1998);
- Operating While Intoxicated, Third Offense (Aug. 29, 2007);
- Attempt to Elude (Aug. 29, 2007); and
- Operating While Intoxicated, Third Offense (April 4, 2013).
Robbins admitted that, in about the Spring of 2014, he took possession of an Iver Johnson, 12 gauge shotgun. The shotgun had been left at Robbin’s residence near Ely, Iowa, located in the Northern District of Iowa, by another person. Robbins later had a friend store the shotgun at the friend’s residence for safekeeping.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Robbins remains in custody of the United States Marshal pending sentencing. Robbins will be sentenced to ten years’ imprisonment, unless he is determined to be an Armed Career Criminal based on his criminal history. If he is an Armed Career Criminal, Robbins will be sentenced to fifteen years’ imprisonment. Robbins also faces a possible maximum fine of $250,000, $100 in special assessments, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and Special Assistant United States Attorney Erin Eldridge. The case was investigated by the Marion Police Department, Linn County Sheriff’s Office, Iowa Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-129-MWB.
Follow us on Twitter @USAO_NDIA.
Elmira Man Sentenced to 188 Months in Federal Prison for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Shannon T. Lewis, 41 of Elmira, NY, who was convicted of production of child pornography, was sentenced to 188 months in prison by U.S. District Court Judge Charles J. Siragusa. The defendant was also placed on supervised release for a period of 30 years and was required to register as a sexual offender. The Court also ordered that the defendant forfeit the digital materials used commit the crime.“This defendant is currently serving two and a half years in state prison on a rape conviction,” said U.S. Attorney Hochul. “Under federal law, Lewis was sentenced to more than 15 years for recording his sexual abuse of a minor. I applaud the diligent investigation conducted by the FBI and Elmira Police Department which led to a successful prosecution and today’s end result.”
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that Lewis was first identified during a sexual assault investigation being conducted by the Elmira Police Department. Officers learned that the defendant harbored at risk minors who ran away from a nearby juvenile facility. While in his custody, Lewis gave the minors drugs, including bath salts. Investigators also learned that the defendant and another adult raped one of the minors, a 16 year old girl, and that Lewis videotaped the rape. Police then contacted the Corning Resident Office of the Federal Bureau of Investigation for assistance.
During the investigation, several homemade, sexually explicit videos of the child were found on the defendant’s computer. The videos showed Lewis hiding the camera in his room before bringing the child in and raping her. The defendant was also seen giving the child victim bath salts before, during, and after the rape.
Lewis was convicted of Rape in Chemung County and is presently serving a sentence of two and a half years in State Prison for that offense.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Corning Resident Office, and members of the Elmira Police Department, under the direction of Chief Michael Robertson.
Eldon Woman Indicted for Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Eldon, Mo., woman has been indicted by a federal grand jury for illegally possessing firearms.
Talissa Dawn Dummermuth, 41, of Eldon, was charged with being a felon in possession of firearms in an indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Aug. 19, 2015. That indictment was unsealed and made public today upon Dummermuth’s arrest and initial court appearance. She remains in federal custody pending a detention hearing.
The federal indictment alleges that Dummermuth was in possession of a Hawes .22-caliber pistol, a Ruger .22-caliber revolver and a Smith & Wesson semi-automatic pistol on July 22, 2015.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Dummermuth has a prior felony conviction for selling methamphetamine.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Columbia, Mo., Police Department, the Miller County, Mo., Sheriff’s Department and the Eldon, Mo., Police Department.
El Paso Businessowner Admits Role in Money Laundering Scheme Associated with Black Market Peso ExchangeRead the Press Release
On the 4th day of his federal trial in El Paso, 52-year-old Jose Luis Rodriguez, owner of ERENE, Inc. (ERENE) pleaded guilty to orchestrating an estimated $100 million trade-based money laundering scheme announced United States Attorney Richard Durbin, Jr., Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez.
ERENE, formerly doing business as “J&E Sports” among other names, is an El Paso-based business which primarily sells shoes and other goods to U.S. and Mexican-based customers.
Yesterday afternoon, Rodriguez pleaded guilty to one count of conspiracy to commit money laundering. By pleading guilty, Rodriguez admitted that he and others conspired to launder the proceeds of a scheme to illegally smuggle millions of dollars worth of goods into Mexico without paying the tariffs, duties, and fees imposed by the Mexican government. From March 6, 2006 to November 2014, these goods were ultimately smuggled using “pasadores” or black market smugglers and were done so without following the U.S. laws and regulations applicable to the export of goods from the United States. Evidence presented during trial also revealed that between 2012 and 2014, more than an estimated $2.3 million in bribes were paid to Mexican customs officials to facilitate the scheme.
Rodriguez, who faces up to 20 years in federal prison, is expected to be sentenced in approximately 60 to 90 days. Two co-defendants--40–year-old ERENE Assistant Manager Jorge Penuelas, and 53-year-old ERENE employee Manuel Rodriguez—entered guilty pleas to the conspiracy charge prior to jury selection. They each face up to 20 years imprisonment when they are scheduled to be sentenced on September 15, 2015.
This investigation was conducted by the HSI’s Financial Operations & Currency Unified Strikeforce (FOCUS). FOCUS is comprised of investigators from HSI, IRS – Criminal Investigation (IRS-CI), U.S. Postal Inspection Service (USPIS), Customs and Border Protection – Office of Field Operations (CBP-OFO) and the El Paso Police Department. The Government of Mexico Servicio de Administracion Tributaria (SAT) also assisted in this investigation. The case is being prosecuted by Assistant United States Attorneys Joseph Blackwell and John Gibson.
EDF Resources Capital Inc. and CEO Pay $6 Million for Alleged Violations Related to Small Business Administration Loan ProgramRead the Press Release
EDF Resource Capital Inc. and its CEO, Frank Dinsmore, have agreed to resolve allegations that they violated the False Claims Act and otherwise failed to remit payments owed to the Small Business Administration (SBA) under the 504 loan program, the Department of Justice announced today. Under the settlement agreement, EDF and Dinsmore have agreed to make payments and turn over certain assets to the United States for a total settlement of approximately $6 million.
“Today’s settlement demonstrates our commitment to ensure that companies and individuals who elect to participate in federal programs live up to their statutory and contractual commitments, play by the rules, and deal honestly and openly with the federal government,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work side-by-side with the Small Business Administration to ensure that fraud committed by SBA program participants is thoroughly investigated and, where appropriate, vigorously prosecuted.”
The SBA 504 loan program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. Under the program, local lenders like EDF are responsible for arranging, servicing and collecting on these small business loans, which are guaranteed, in part, by the SBA. In return for the authority to make determinations on 504 loans without prior SBA approval, EDF was required to bear a share of any losses suffered by the SBA on such loans and to maintain a loan loss reserve fund (LLRF) to help ensure payment of its loss-sharing obligations.
Today’s settlement resolves claims that EDF and Dinsmore violated the False Claims Act in connection with EDF’s failure to maintain adequate reserves in its LLRF. EDF allegedly was required to fund its LLRF at a level determined by the riskiness of its 504 loan program portfolio yet knowingly concealed from the SBA hundreds of troubled loans to avoid its obligation to fully fund its LLRF.
The settlement also resolves a lawsuit filed by the United States against EDF and a related entity, Redemption Reliance LLC, alleging that EDF failed to remit required payments to the SBA to satisfy its loss-sharing obligations. The lawsuit also alleges that the SBA agreed to advance funds to EDF in connection with certain defaulted 504 loans but that, after EDF assigned the loan documents for these loans to Redemption Reliance, neither EDF nor Redemption Reliance remitted the monies owed on these loans to the SBA.
“The 504 Loan Program provides small businesses with access to the capital they need to start, grow and succeed,” said General Counsel Melvin F. Williams Jr. of the SBA. “SBA has no tolerance for fraud, waste, or abuse by participants in the 504 Loan Program. Working with the attorneys at the Department of Justice and SBA’s Office of Inspector General, this settlement marks the successful conclusion of a major enforcement action.”
“The defendants’ misrepresentations to SBA knowingly put the taxpayer’s money at risk,” said Inspector General Peggy E. Gustafson of the SBA. “As stewards of the taxpayers’ money, the SBA must guard against losses within its loan portfolios. In this instance, the actions of the defendants did not allow SBA to protect taxpayers from such losses. I want to thank the Department of Justice and our investigative partners for achieving this settlement.”
The settlements were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the SBA’s Office of General Counsel and the SBA’s Office of Inspector General Los Angeles Field Office’s Counsel Division and Investigations Division.
The lawsuit is captioned United States v. EDF Resource Capital, Inc., et al., Case No. 13‑cv-389 (E.D. Cal.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Defendant Sentenced for Conspiring to Provide Material Support to Foreign Terrorist OrganizationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), announce that Mohamed Hussain Said, 27, a citizen and resident of Nairobi, Kenya, was sentenced to fifteen years in prison by U.S. District Judge Ursula Ungaro, for conspiring to provide material support to three separately designated Foreign Terrorist Organizations, al-Qa’ida, al-Qa’ida in Iraq/al-Nusrah Front (“AQI/al-Nusrah Front”), and al-Shabaab.
On May 28, 2015, Said pled guilty to Count 1 of an Indictment charging him with conspiracy to provide money and recruits to al-Qa’ida, AQI/al-Nusrah Front in Syria, and al-Shabaab in Somalia. During the conspiracy, Said received a series of wire transfers from co-conspirator Gufran Ahmed Mohammed for the purpose of supporting al-Shabaab, and recruited experienced al-Shabaab fighters for AQI/al-Nusrah Front to fight in the conflict in Syria. Additionally, Said tried to recruit other individuals for attacks within the United States.
Mr. Ferrer commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Brian K. Frazier and Ricardo A. Del Toro and Trial Attorney Jolie F. Zimmerman from the Counterterrorism Section of the Justice Department’s National Security Division.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Dallas Attorney and Family Members in Federal Custody for Allegedly Committing Health Care Fraud, Theft of Government Funds and Mail FraudRead the Press Release
DALLAS — After his arrest today, Dallas attorney Tshombe Anderson remains in federal custody, along with his wife Brenda Anderson and his sister Lydia Bankhead, on charges outlined in a federal criminal complaint stemming from a scheme they ran to fraudulently obtain more than $22 million from the Department of Labor (DOL) Office of Worker’s Compensation Program (OWCP), announced U.S. Attorney John Parker of the Northern District of Texas.
Tshombe Anderson, 52, was arrested today, and his wife was arrested on Wednesday in Dallas. Bankhead was also arrested on Wednesday in Russellville, Arkansas. Brenda Anderson, 45, and Bankhead, 61, each made their initial appearance before a U.S. Magistrate Judge, and both are scheduled for detention hearings next week. Tshombe Anderson will make his initial appearance in federal court on Monday, August 31, 2015, before U.S. Magistrate Judge Paul D. Stickney.
According to the complaint, unsealed today, Tshombe Anderson worked as an attorney for Union Treatment Center (Union), a treatment and rehab center with offices in Austin, Corpus Christi, Killeen and San Antonio, Texas, from approximately February 2010 to May 2011. Union specialized in treating injured state and federal worker’s compensation patients. In February 2010, Brenda Anderson also began working for Union, and shortly thereafter, she formed Best First Administration (BFA) Durable Medical Equipment (DME) of Austin, which became Union’s “in-house” DME provider.
In general, according to the complaint, a Union doctor would provide Brenda Anderson with a prescription for a patient’s DME items, and she would then send the prescribed DME to the patient. BFA billed OWCP and deposited the payment for the DME into BFA’s designated bank account.
However, in May 2011, Union fired Tshombe and Brenda Anderson because an audit revealed they appeared to be engaging in fraudulent billing practices, according to the complaint. The following month, Union created their own “in-house” DME company to provide patients with necessary treatment supplies. Brenda Anderson and BFA, however, retained patient records and identifying information and used that information to continue to bill OWCP for unrequested and/or unnecessary DME sent to Union patients.
In January 2013, Tshombe Anderson formed Union Medical Supplies & Equipment, LLC (UMSE), which records indicate was managed by Lydia Bankhead and their mother. In April 2013, USME began fraudulently billing OWCP for DME delivered to the same Union patients as BFA. In January 2014, USME changed its address with OWCP from 327 Cedar Creek Drive in Duncanville, Texas, to 2606 Martin Luther King Jr. Blvd., in Dallas, an address located next door to The Law Office of Tshombe A. Anderson, LLC, located at 2604 Martin Luther King Jr. Blvd., in Dallas. Every DME transaction billed by UMSE since its formation appears to be fraudulent.
In May 2013, Tshombe Anderson formed Sky-Care Medical Supplies & Equipment, LLC (SMSE). Records list Tshombe Anderson’s sister-in-law as SMSE’s Manager. In August 2013, SMSE began billing OWCP for the same patients as BFA and UMSE; every DME transaction billed by SMSE since its formation appears to be fraudulent.
In January 2014, Tshombe Anderson formed American Federal Union Claims Advocates, LLC (AFUCA). Tshombe Anderson is listed as the only managing member of this company, and the company’s address is the same as that of his law office.
OWCP billing records from January 2011 through April 9, 2015, indicate that 292 patient claim numbers were filled by at least one of the Andersons’ three DME companies.
From April 11, 2013 through April 9, 2015, USME billed approximately $22,498,085 and was paid $19,573,704 by OWCP for DME that was not needed or requested by the patient or the doctor treating the patient.
From August 7, 2013 through April 9, 2015, SMSE billed approximately $1,833,895 and was paid $1,706,848 by OWCP for DME that was not needed or requested by the patient or the doctor treating the patient.
A federal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for both health care fraud and theft of government funds is 10 years in federal prison and a $250,000 fine. The maximum statutory penalty for mail fraud is 20 years in federal prison and a $250,000 fine.
The DOL Office of Inspector General and the U.S. Postal Service Office of Inspector General are investigating. Special Assistant U.S. Attorney Danial Gividen and Assistant U.S. Attorneys Aaron Wiley and Lea Carlisle are in charge of the prosecution.
# # #
Criminals Arrested with Guns in Baltimore City to Face Federal Charges in Fourteen Separate CasesRead the Press Release
Baltimore, Maryland – Fourteen defendants arrested with illegal guns in Baltimore this summer will now face federal charges as a result of an alliance between local and federal officials. The names of the defendants will be disclosed when they are transferred from state custody to federal court next week.
Under an initiative by the Baltimore City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baltimore City State’s Attorney’s Office and the United States Attorney’s Office, prosecutors and police review cases of defendants arrested for firearms violations and evaluate whether the case should be considered for federal prosecution. Prosecutors evaluate each defendant’s criminal record, the circumstances of the arrest and other relevant information.
“If you have a criminal record and possess a gun, be prepared to spend many years in a federal prison far from home,” said U.S. Attorney Rod J. Rosenstein. “Police and prosecutors are working to identify armed criminals who deserve to be prosecuted in federal court.”
Any previously convicted criminal who possesses a gun faces a sentence of up to ten years in federal prison, even if the criminal did not use the gun. There is no probation or parole in the federal criminal justice system.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Convicted killer sentenced to 15 years in prison for having gun and body armorRead the Press Release
A Boardman man was sentenced to more than 15 years in prison for illegally possessing a firearm and body armor, law enforcement officials said.
Akira O. Jackson, 33, pleaded guilty earlier this year to two counts in federal court -- being a felon in possession of a firearm and being a felon in possession of a ballistic vest. He was sentenced to 188 months in federal prison.
On March 18, Jackson possessed body armor, a .40-caliber pistol and ammunition. Jackson was forbbiden by law from possessing these items because of prior convictions, including conspiracy to commit voluntary manslaughter, possession of a firearm by a felon, possession with intent to distribute marijuana and an additional conviction for possession of a firearm by a felon, according to court documents.
"This is a well-deserved sentence for a violent person who has no business carrying a firearm," said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
This case was prosecuted by Assistant U.S. Attorney Adam Hollingsworth following an investigation by ATF and the Boardman Police Department.
Con Man Who Defrauded Healthcare Companies Sentenced to 5 Years in Federal PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Court Judge John W. DeGravelles sentenced LARRY D. BUTLER, age 50, of Baton Rouge, Louisiana, to sixty (60) months in federal prison as a result of his scheme to defraud two of his former employers. BUTLER was also ordered to make restitution in the amount of $118,806.98 to his victims, and to serve a three-year term of supervised release following his release from imprisonment. At the sentencing hearing, Judge DeGravelles noted BUTLER’s significant criminal history and the nature of his criminal actions.
On January 9, 2015, BUTLER was convicted of wire fraud, in violation of Title 18, United States Code, Section 1343, and false representation of a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(b). His convictions stem from his scheme to defraud the Louisiana Health Cooperative, Inc., and the Mary Bird Perkins Cancer Center, from July 2013 through August 2014. Specifically, BUTLER used false credentials, a false social security number, and other false documentation, to conceal his significant criminal history and thereby obtain the pay and benefits associated with being employed by the victim non-profit organizations. BUTLER also misused company credit cards for personal expenses, including furniture, travel, and meals. Through his schemes, BUTLER fraudulently obtained nearly $119,000.
United States Attorney Walt Green stated: “This case demonstrates the damage that can be wrought by fraudsters who deceive good, hardworking people to obtain undeserved employment and then abuse their positions to steal more. This sort of conduct not only causes financial injury to the employers, it victimizes their honest employees. In this case, the fraudulent conduct is particularly egregious, given the noble missions of these victims to provide affordable health care and to treat and fight cancer. My office will continue to vigorously prosecute individuals who defraud and steal from our employers. I appreciate the great work performed in this case by the prosecutors, the U.S. Secret Service, the Baton Rouge Police Department, and the Mississippi Department of Corrections, along with the cooperation of the District Attorney’s Office for the Nineteenth Judicial District.”
This matter was prosecuted by Assistant United States Attorneys Ryan R. Crosswell and Alan A. Stevens, who serves as a Deputy Criminal Chief. This matter was investigated by the U.S. Secret Service and the Baton Rouge Police Department, with valuable assistance provided by the Mississippi Department of Corrections.