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Wednesday 1 July 2015
Tonawanda Woman Sentenced for Defrauding Elderly VeteranRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Kathy Oertelt, 32, of Tonawanda, NY, who was convicted of mail fraud, was sentenced to 18 months in prison by Senior U.S. District Judge William M. Skretny, to mail fraud.Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that between April and October 2013, Oertelt, who was employed as a health care provider for an 87-year old legally blind veteran, used the veteran’s signature stamp without his knowledge or permission to issue checks to herself totaling approximately $20,000. The defendant also obtained blank checks from an account the veteran had at the Navy Federal Credit Union in Vienna, Virginia. Oertelt wrote checks to herself on that account totaling approximately $54,000, and used the funds to purchase a 2008 Ford Expedition and a 2001 Suzuki SSXR motorcycle and to fund her gambling habit.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Veterans Administration, Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent in Charge Jeffrey G. Hughes, and the United States Secret Service, under the direction Special Agent in Charge C. Todd Laster.Tonawanda Man Sentenced for Cocaine and Marijuana TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Richard Himbury, 43, of Tonawanda, NY, who was convicted of conspiring to distribute over 15 kilograms of cocaine and 450 kilograms of marijuana, was sentenced to 121 months in prison by District Judge Richard J. Arcara.Assistant U.S. Attorney Edward H. White, who handled the case, stated that between January 2010 and December 9, 2011, the defendant conspired with James Leon, Ricardo Garza, Daniel Garza and others, to distribute cocaine and marijuana. Ricardo Garza supplied the drugs to James Leon who then redistributed them to Himbury and others.
On November 15, 2011, the Drug Enforcement Administration seized approximately eight kilograms of cocaine and 100 pounds of marijuana from Himbury’s residence on St. Amelia Drive in Tonawanda. The seizure followed a vehicle pursuit of Himbury by federal agents on Route 20-A in Wales, NY. There, agents recovered four ounces of cocaine which Himbury threw out his car window during the chase.
James Leon, Ricardo Garza, and Daniel Garza have been convicted.
The sentencing is the result of a joint and continuing investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, Investigators from the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lockport Police Department, under the direction of Chief Lawrence Eggert, the Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III, the Amherst Police Department, under the direction of Chief John Askey, the Erie County Sherriff’s Department, under the direction of Sheriff Timothy Howard, the Lancaster Police Department, under the direction of Chief Gerald Gill, the Cattaraugus County Sherriff’s Department, under the direction of Sheriff Timothy Whitcomb and the Southern Tier Regional Drug Task Force.
Toledo man charged with robbing same bank on back-to-back daysRead the Press Release
An indictment was filed charging John Lee Robinson, 53, of Toledo, with two counts of bank robbery.
Robinson is accused of robbing the Citizens Bank at 4260 Monroe Street in Toledo on June 3 and the same bank the following day.
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, Toledo. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An indictment 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.
Three Sentenced on Bribery Charges in Connection with Gulf Coast Community Action AgencyRead the Press Release
Gulfport, Miss – Linda Harvey-Irvin, 62, of Jackson, Donald Walton, 51, of Vicksburg, and Markuntala Croom, 45, of Columbia, were sentenced today by U.S. District Judge Sul Ozerden for bribery involving the Gulf Coast Community Action Agency, a non-profit organization, partially funded by federal grants, which runs the Head Start Preschool in Gulfport, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Donald Alway, Special Agent in Charge Jerome R. McDuffie with IRS – Criminal Investigation, and Mississippi State Auditor Stacey Pickering.
Linda Harvey-Irvin was sentenced to 85 months in federal prison followed by two years of supervised release. She was also ordered to pay $531,236 in restitution and perform 100 hours of community service.
Donald Walton was sentenced to 37 months in federal prison followed by two years of supervised release. He was also ordered to pay a $10,000 fine and a forfeiture judgment in the amount of $31,000 was entered.
Markuntala Croom was sentenced to 57 months in federal prison followed by two years of supervised release. He was also ordered to pay $531,236 in restitution and perform 100 hours of community service.
Harvey-Irvin was the deputy director of the Mississippi Gulf Coast Community Action Agency, located in Gulfport. She accepted bribes from Walton, owner and operator of Walton Construction, in exchange for construction contracts worth more than $400,000. Harvey-Irvin was also charged in a second indictment with accepting bribes from Markuntala Croom, owner and operator of Croom Consulting, in exchange for awarding over $520,502 in consulting work to Croom. Walton paid Harvey-Irvin $31,000 in kickbacks as a reward for his contracts, and Croom paid Harvey-Irvin $69,911.49 in kickbacks as a reward for her contracts.
U.S. Attorney Gregory K. Davis praised the efforts of the federal and state investigative agencies who worked on this case. "The sentences handed down today are fitting for the violations committed by these defendants, said U.S. Attorney Davis. "This office will continue to work with our federal and state law enforcement partners to prosecute those who choose to violate federal laws.
"Fraud of this kind diverts precious taxpayer dollars and jeopardizes the strength of a program that serves the most vulnerable members of our society," stated Donald Alway, Special Agent in Charge of the FBI in Mississippi. "However, as this case demonstrates, the FBI and our law enforcement partners are aggressively fighting back to protect the U.S. taxpayer and the integrity of our federal assistance programs."
Special Agent in Charge Jerome R. McDuffie, IRS – Criminal Investigation, stated: "We are pleased with the sentences handed down by the court in this matter. It should send a strong message to Mississippians and federal taxpayers that the theft of taxpayer dollars will not be tolerated. Linda Harvey- Irvin and her co-conspirators also represent an example to others who are engaged in the acceptance of kickbacks, that public servants, and/or the individuals who bribe them, are not above the law. In fact, they are held to the highest legal and ethical standards. IRS- Criminal Investigation is proud to have been a partner in this very important investigation, and is committed to continuing to work with our law enforcement partners to help put an end to public corruption."
Mississippi State Auditor Stacey Pickering stated: "By April 2010, an investigation was launched by the State Auditor’s Office into the use of funds awarded to the Mississippi Gulf Coast Community Action Agency (GCCAA). It is very sad that the money intended to serve as an economic stimulus for that community turned into a slush fund for personal gain." "The funds mishandled by GCCAA is an example of the importance of state and federal officials working together. One public dollar taken illegally is one too many," Pickering said. "The sentences handed down today show that my office, the U.S. Attorney’s Office, the FBI, and the IRS, will not tolerate this type of behavior by those entrusted with taxpayer funds."
This case was investigated by the Mississippi State Auditor’s Office, the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation and U.S. Department of Health and Human Services – Office of Inspector General. It was prosecuted by Assistant United States Attorney Scott Gilbert.
Three Plead Guilty to Trafficking Heroin from Mill & Stash HouseRead the Press Release
PROVIDENCE, R.I. – Michael Santana Guilermo, 33, of Cranston, R.I., Carlos Ramos Rosa, 37, and Felix Fuentes Perez, 35, of Boston, Mass., pleaded guilty in federal court in Providence today to operating a heroin mill & stash house in West Warwick, R.I., where they cut and packaged for sale large quantities of high-purity heroin.
Appearing before U.S. District Court Judge Mary M. Lisi, the three men pleaded guilty to conspiring to distribute and possess with the intent to distribute one kilogram or more of heroin.
The guilty pleas are announced by United States Attorney Peter F. Neronha, Michael Ferguson, Special Agent in Charge of the DEA’s New England Field Division, Cranston Police Chief Colonel Michael J. Winquist and West Warwick Police Chief Colonel Richard G. Silva.
A fourth individual, Yhoel Pujols Morel, 25, of Providence, an alleged member of the heroin trafficking conspiracy, is detained in federal custody and awaiting trial.
According to court documents and information presented to the court, an investigation by the Rhode Island DEA Drug Task Force determined that during 2014, packages containing one or more kilograms of heroin were repeatedly shipped into Rhode Island via common carrier parcel delivery services. After receipt of the heroin, members of a drug trafficking conspiracy processed the high-purity heroin for further distribution, by breaking apart the kilograms, mixing in adulterants and then repackaging the heroin for redistribution.
Based on information developed by members of the Drug Task Force, law enforcement determined that a conspiracy to process, package and distribute the heroin was being operated out of a heroin mill & stash house in West Warwick. As a result of evidence developed during the investigation, including the use of electronic surveillance, on November 10, 2014, shortly after Yhoel Pujols Morel allegedly exited the stash house carrying a white bag and drove away from the area, a member of the Cranston Police Department working with the Drug Task Force conducted a traffic stop of the Pujols’ vehicle. A subsequent search of the vehicle revealed a non-factory installed concealed compartment within the driver's side door of the vehicle which allegedly contained approximately 653 grams of heroin.
The following day, Felix Fuentes Perez and Carlos Ramos Rosa exited the West Warwick residence and entered one vehicle while Michael Santana Guilermo exited the residence and entered a second vehicle. Shortly after driving away from the residence, a Cranston Police officer working with the Drug Task Force conducted a motor vehicle stop of Perez and Rosa’s vehicle. A search of the vehicle yielded 1,111.4 grams of heroin concealed inside a hidden compartment under the rear seat.
Guilermo was arrested on March 4, 2015, by DEA and DEA Drug Task Force agents.
Carlos Ramos Rosa and Michael Santana Guilermo are scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on September 18, 2015. Felix Fuentes Perez is scheduled to be sentenced on October 1, 2015.
Conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin is punishable by statutory penalties of between 10 years to life imprisonment to be followed by between 5 years to lifetime supervised release, and a fine of up to $10,000,000.
The cases are being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The DEA Drug Task Force is comprised of law enforcement agents and officers from DEA, Rhode Island State Police, and the Cranston, East Providence, Newport, Providence, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
Pawtucket Police detectives assisted in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Three Mercer County men sentenced in federal court in BluefieldRead the Press Release
Bluefield, W.Va. – United States Attorney Booth Goodwin announced that three Mercer County men were sentenced today in federal court in Bluefield. Lamar Baxter, 39, of Princeton, was sentenced to 27 months in federal prison for using a communication facility to facilitate a felony. Baxter pled guilty in March of 2015, admitting that on November 11, 2014, he used a telephone in Princeton to set up a drug deal with a confidential informant, and shortly thereafter distributed seven 30mg oxycodone pills to the informant. Baxter admitted distributing a total of about 100 30mg oxycodone pills and about 100 hydromorphone pills over a period of time.
Joshua Blevins, 31, of Bluefield, was sentenced to 16 months in federal prison for use of a communication facility to facilitate a felony. Blevins guilty in February of 2015, admitting that on November 21, 2014, he used a telephone in or near Bluewell to set up a drug deal with a confidential informant. Shortly after that telephone call, Blevins distributed one oxymorphone pill to the informant. Blevins admitted to distributing a total of four oxymorphone pills to the informant.
Carl E. Howard, 62, of Princeton, was sentenced to 11 months in federal prison for distributing hydromorphone. Howard pled guilty in February of 2015, and admitted that on July 8, 2014, he distributed two hydromorphone pills to a confidential informant in Princeton. He further admitted that he distributed a total of 13 hydromorphone pills and small quantities of cocaine base and heroin.
These cases were investigated by the Southern Regional Drug and Violent Crime Task Force under the Bluefield Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. Assistant United States Attorney John File prosecuted these cases.
Teamster Pleads Guilty to Mail FraudRead the Press Release
BOSTON – A member of the Boston Teamsters Local 82 pleaded guilty on Monday, June 29, 2015 in U.S. District Court in Boston in connection with stealing unemployment insurance benefits.
Thomas Flaherty, 52, of Braintree pleaded guilty to three counts of mail fraud for defrauding the Massachusetts Department of Workforce Development, Division of Unemployment Assistance of unemployment insurance benefits. U.S. District Court Judge Denise Jefferson Casper scheduled sentencing for Sept. 24, 2015.
From March 2010 to December 2011, while working for Local 82, Flaherty’s gross earnings were $49,890; however, Flaherty made several misrepresentations so that he could collect unemployment insurance benefits. Specifically, Flaherty falsely reported to the Department of Unemployment Insurance that during the same time period he earned only $10,102. Flaherty failed to report his weekly earnings or significantly under-reported his earnings so that it appeared to the Department of Unemployment Insurance that he was eligible to receive full or at least partial unemployment insurance when, in fact, he was employed nearly full time and was not eligible. In total, Flaherty collected $21,093 in unemployment insurance benefits.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 on each count, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Scott S. Dahl, Inspector General of the U.S. Department of Labor, Office of Inspector General; Mark J. Neylon, District Director of the U.S. Department of Labor, Office of Labor-Management Standards; Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration; and Boston Police Commissioner William Evans, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Laura J. Kaplan of Ortiz’s Organized Crime and Gang Unit and Susan G. Winkler of Ortiz’s Narcotics and Money Laundering Unit.
Taos Pueblo Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Nathan Mondragon, 29, a member and resident of Taos Pueblo, N.M., was sentenced this afternoon in Albuquerque, N.M., to 84 months in federal prison followed by three years of supervised release for his assault conviction.
Mondragon was arrested on Sept. 23, 2014, on a criminal complaint charging him with assault with a deadly weapon and assault resulting in serious bodily injury. According to the complaint, Mondragon assaulted another Taos Pueblo member on Sept. 14, 2014, in Taos County, N.M., on land owned by Taos Pueblo. The complaint alleges that Mondragon stabbed the victim multiple times before fleeing the crime scene. Mondragon was subsequently indicted on Oct. 21, 2014, and charged with assault with a dangerous weapon and assault resulting in serious bodily injury.
On Dec. 23, 2014, Mondragon pled guilty to an assault resulting in serious bodily injury charge. Mondragon admitted that on Sept. 14, 2014, he assaulted the victim by stabbing him with a knife at a location within Taos Pueblo.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Taos Pueblo Tribal Police Department. Assistant U.S. Attorney David Adams prosecuted the case.
Statements by Head of the Civil Rights Division Vanita Gupta and U.S. Attorney Preet Bharara of the Southern District of New York on the Filing of the Proposed Settlement Agreement Regarding Rikers IslandRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, Head of the Civil Rights Division, issued the following statement today in connection with the filing of the proposed settlement agreement among the parties in Nunez v. City of New York:
“The unprecedented reforms announced today further the Civil Rights Division’s goals of protecting youth from unconstitutional conditions of confinement, whether in the juvenile or criminal justice system. This proposed consent judgment is unprecedented in the detail and comprehensiveness of its use of force remedies. Those remedies are highly appropriate, given the breadth of Rikers Island’s operations and the culture of excessive use of force that we found there. In addition, the prohibitions restricting the use of isolation and reforming the disciplinary system for inmates under the age of 19 provide essential protections for the complicated, and often underserved, population of youth charged in the adult criminal justice system.”
U.S. Attorney Preet Bharara of the Southern District of New York issued the following statement today:
“Today marks another important step toward meaningful and lasting reform at Rikers Island. The parties have executed, and we have submitted for the court’s approval, a 63-page agreement establishing a detailed and comprehensive framework of practices, systems and policies designed to reduce violence in the jails and to keep inmates and correction officers safe. This agreement reflects the commitment of all involved to dismantle the culture of violence that has for too long denied those at Rikers Island the protections of the Constitution. We look forward to the court’s approval of this landmark agreement, and through its vigilant enforcement, ensuring that the city lives up to its promises.”
Statements of Manhattan U.S. Attorney Preet Bharara and Head of the Civil Rights Division Vanita Gupta on the Filing of the Proposed Settlement Agreement Regarding Rikers IslandRead the Press Release
Manhattan U.S. Attorney Preet Bharara issued the following statement today in connection with the filing of the proposed settlement agreement among the parties in Nunez v. City of New York:
“Today marks another important step toward meaningful and lasting reform at Rikers Island. The parties have executed, and we have submitted for the Court’s approval, a 63-page agreement establishing a detailed and comprehensive framework of practices, systems and policies designed to reduce violence in the jails and to keep inmates and correction officers safe. This agreement reflects the commitment of all involved to dismantle the culture of violence that has for too long denied those at Rikers Island the protections of the Constitution. We look forward to the Court’s approval of this landmark agreement, and through its vigilant enforcement, ensuring that the City lives up to its promises.”
Principal Deputy Assistant Attorney General Vanita Gupta, Head of the Civil Rights Division, issued the following statement today:
“The unprecedented reforms announced today further the Civil Rights Division's goals of protecting youth from unconstitutional conditions of confinement, whether in the juvenile or criminal justice system. This proposed Consent Judgment is unprecedented in the detail and comprehensiveness of its use of force remedies. Those remedies are highly appropriate, given the breadth of Rikers Island's operations and the culture of excessive use of force that we found there. In addition, the prohibitions restricting the use of isolation and reforming the disciplinary system for inmates under the age of 19 provide essential protections for the complicated, and often underserved, population of youth charged in the adult criminal justice system.”
Statement of ConscienceRead the Press Release
Our hearts are saddened by the massacre at Mother Emanuel AME Church in Charleston, South Carolina, and we extend our deepest sympathies to the families and friends of the victims. We choose to not be silent at this moment in our nation's history, but to be clear about where we stand. We condemn all acts of violence and are especially sensitive to violence motivated by racial hatred. We commend the people of Emanuel and Charleston for their inspiring response to this tragedy.
As we stand in solidarity with Mother Emanuel and Charleston, we know that many of our friends and neighbors worry whether such events could take place in New Haven. Although we cannot prevent all acts of violence, members of the African American clergy, the larger New Haven faith community, the New Haven Police Department, the United States Attorney’s Office for the District of Connecticut, the Federal Bureau of Investigation, the New Haven State’s Attorney’s Office and Project Longevity remain committed to working together to promote the safety of all our residents and to create an environment of trust that recognizes the humanity and dignity of every member of our community.
Over the last three years, the New Haven Police Department’s reinstitution of community policing, the U.S. Attorney’s Office’s outreach efforts, and initiatives of the African American clergy have strengthened the ties between the local community and its law enforcement partners. We are committed to deepening those ties.
At the same time, we recognize that recent events have brought into stark relief the unhealed wounds created by our nation’s tortuous history of slavery and racism. We recognize, as the United States House of Representatives acknowledged in its 2008 apology for slavery, that “African-Americans continue to suffer from the complex interplay between slavery and Jim Crow. . . through enormous damage and loss, both tangible and intangible, including the loss of human dignity, the frustration of careers and professional lives, and the long-term loss of income and opportunity.”
We live in a nation with a history of racism and none of us can escape that legacy. But we can deepen our understanding of that history and work to heal from it. We commit to doing our part to promote that vital healing. We commit to work together to foster a continuing community conversation that will help us all look with fresh eyes at our history and its impact on our lives today -- to look at how stereotypes created four hundred years ago to justify the enslavement of Black people still shape public and private perceptions and actions.
We will ensure that racial violence will never be accepted in New Haven or the rest of Connecticut. We will foster an environment of trust and respect, and we will boldly create opportunities to promote racial healing and reconciliation that will lead to genuine racial and economic justice. We cannot bring back the nine lives lost in Charleston, but we will honor their memories by working together to prevent such tragedies from befalling other families.
DEIRDRE M. DALY
UNITED STATES ATTORNEYPATRICIA FERRICK
SPECIAL AGENT IN CHARGE,
FEDERAL BUREAU OF INVESTIGATIONTONI HARP
MAYOR, NEW HAVENDEAN M. ESSERMAN
CHIEF, NEW HAVEN POLICE DEPARTMENTMICHAEL DEARINGTON
STATE’S ATTORNEY, NEW HAVENBRENT PETERKIN
PROJECT LONGEVITYSTACY R. SPELL
PROJECT LONGEVITYREV. JAMES NEWMAN
NEW FREEDOM CHURCH
PRESIDENT, GREATER NEW HAVEN CLERGY ASSOCIATIONREV. MARY ANDERSON
THE CITY OF MINISTRY REFUGEREV. J. SCOTT BARBER
CHURCH OF GOD & SAINTS OF CHRISTELDER ALTON BARNES
HOLY TRINITY CHURCH OF GOD IN CHRISTBISHOP H. D. BORDEAUX
CHURCH OF GOD IN CHRISTADMIN. ASSIST. THOMAS J. BORDEAUX
CHURCH OF GOD IN CHRISTREV. EDDIE CHERRY
GREATER MT. CARMEL PENTECOSTALREV. STEVE COUSIN, JR.
BETHEL A.M.E. CHURCHREV. GEORGE KAVOOR
ST. JOHN'S EPISCOPAL CHURCHDR. REV. BOISE KIMBER
FIRST CALVARY BAPTIST CHURCHREV. KEITH KING
CHRISTIAN TABERNACLE BAPTIST CHURCHREV. RICHARD D. MEADOWS
ST. LUKE’S EPISCOPAL CHURCHREV. DOROTHY MEWBORN
FIRST CALVARY BAPTIST CHURCHREV. AARON MOODY
FIRST CALVARY BAPTIST CHURCHDR. LUCILLE MOORING-WINSTON
SAFELY PLACED OUTREACH MINISTRYPASTOR CAROLYN OHERE
FAITH TEMPLE REVIVAL CENTERREV. BELINDA ROBERTS-BURNETT
P.W.A.P. MINISTRIESBISHOP ERELL SKYERS
SHILOH APOSTOLIC CHURCH OF CHRISTBISHOP VICENT SMITH
MORNINGSTAR DELIVERANCE MINISTRIESBISHOP ROBERT H. STALLINGS
CHURCH OF GOD AND SAINTS OF CHRISTREV. HOWARD TAYLOR
FAITH CENTER CHURCHPROPHET RICHARD TRENT
AT LARGEREV. ROGER WILKINS
MLCM CHURCH OF GOD IN CHRISTScotland County, North Carolina, Public Housing Agency and Two Former Employees to Pay over $2.7 Million to Settle Sexual Harassment LawsuitsRead the Press Release
The Justice Department today announced that Southeastern Community and Family Services Inc. (SCFS), a public housing agency that administers the Section 8 voucher program in Scotland County, North Carolina, and two of SCFS’ former employees have agreed to pay more than $2.7 million in monetary damages and civil penalties to settle consolidated Fair Housing Act lawsuits brought by the Justice Department and private plaintiffs. SCFS was formerly known as Four-County Community Services Inc. The suits allege that Wesley, SCFS’s former Section 8 housing coordinator, and Pender, SCFS’s former housing inspector, sexually harassed female voucher program participants and applicants. This represents the largest monetary settlement ever agreed to in a sexual harassment case brought by the Justice Department under the Fair Housing Act.
“It is deeply offensive and illegal to sexually harass women who are seeking housing for themselves and their families,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “This settlement sends a strong message to those who would exploit their positions of power that their egregious conduct will not be tolerated and that the Civil Rights Division will aggressively pursue those who engage in it.”
“The conduct of these defendants was reprehensible, and we are pleased with the outcome in this case,” said U.S. Attorney Ripley Rand of the Middle District of North Carolina. “We will continue to do everything we can to vindicate the rights of those who are subject to sexual harassment and hold accountable those who seek to prey upon others.”
“No one who provides much-needed housing or housing benefits to low-income women has the right to demand sexual favors in exchange for that housing,” said Assistant Secretary Gustavo Velasquez of the Department of Housing and Urban Development (HUD). “It’s wrong and it’s illegal. Today’s settlement reaffirms the Justice Department’s and HUD’s commitment to protecting the rights of women to live safely in their homes, without harassment.”
The department’s complaint, filed in the U.S. District Court for the Middle District of North Carolina, alleges, among other things, that Wesley and Pender subjected voucher program participants and applicants to unwanted sexual comments, sexual touching and other sexual acts, conditioned or offered Section 8 benefits in exchange for sexual acts and took adverse housing actions against those who rebuffed their sexual advances. As alleged in the complaint, Wesley and Pender engaged in this conduct while exercising their authority as employees of SCFS, and SCFS failed to take reasonable preventive or corrective measures. SCFS terminated the employment of Wesley and Pender after the department filed its lawsuit.
The consent decree, which is subject to approval by the U.S. District Court, requires the defendants to pay $2,700,000 in monetary damages to victims of their discriminatory conduct, including fifteen victims who filed a private lawsuit and their attorneys, and any additional individuals who are identified by the United States through a process established in the consent decree. Individuals who believe they were subjected to sexual harassment by Wesley or Pender should contact the Justice Department at 1-800-896-7743, option 94, or e-mail the department at [email protected]. In addition, the defendants must pay $27,500 to the United States as a civil penalty.
The consent decree also prohibits the defendants from engaging in discrimination and requires SCFS to establish a non-discrimination policy and grievance procedure and to hire an independent manager for the Section 8 Voucher program. SCFS officials are required to participate in fair-housing training to prevent such conduct in the future. The decree bars Wesley and Pender from participating in the management of any Section 8 Voucher program and any residential rental properties in the future. The department’s lawsuit began after Legal Aid of North Carolina Inc.’s Fair Housing Project brought the matter to the department’s attention. HUD also referred to the department a complaint against the defendants. The department then conducted an independent investigation and filed suit.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe that they have experienced unlawful housing discrimination elsewhere can contact the Justice Department at 1-800-896-7743, or e-mail [email protected], or contact the Department of Housing and Urban Development at 1-800-669-9777.
Santa Fe Physician Arraigned on Federal Indictment Alleging Scheme to Defraud Medicare and Other Health Care Benefit ProgramsRead the Press Release
ALBUQUERQUE – Roy G. Heilbron, 51, a cardiologist in Santa Fe, N.M., was arraigned in federal court in Albuquerque, N.M., on a 24-count indictment charging him with health care fraud and wire fraud, announced Damon P. Martinez and Special Agent Carol K.O. Lee of the FBI’s Albuquerque Division. Heilbron entered a not guilty plea and was released on his own recognizance
The indictment alleges that Heilbron, a physician licensed to practice medicine in New Mexico who specializes in cardiology, executed a scheme to defraud Medicare and other health care benefit programs between Jan. 2010 and May 2011 by submitting false and fraudulent claims. According to the indictment, Heilbron allegedly executed his fraudulent scheme by:
- Performing and billing for a wide array of unnecessary tests on every new patient and submitting false diagnoses with the billing claims to justify the tests to the insurance plans;
- Inserting false symptoms, observations, and diagnoses into patients’ medical charts to provide written support for the tests he ordered or performed;
- Inserting photocopied clinical notes, diagnostic test results, and ultrasound images in patients’ medical charts to create a written record of procedures that were either not performed or that had not been sufficiently documented to support the billing;
- Submitting the photocopied notes, results, and images to the insurance plans when the plans requested documentation to support the claims submitted;
- Submitting claims to health plans for procedures that were never performed;
- Submitting claims for procedures performed on two consecutive dates to increase the amount paid for services that were actually rendered together on one single date; and
- Misusing billing codes and modifiers in order to increase his rate of reimbursement.
Counts 1 through 9 of the indictment allege that Heilbron committed health care fraud by submitting false claims for medical services rendered to health care benefit programs on nine dates between July 13, 2010 and Feb. 10, 2011. Counts 10-21 allege that Heilbron committed health care fraud by submitting falsified medical records for medical services to health care benefit programs on twelve occasions between Jan. 20, 2010 and May 5, 2011. Counts 22 through 24 allege that Heilbron committed wire fraud by using wire communications to obtain payments from health care benefit programs.
The indictment includes forfeiture provisions that seek forfeiture of any property derived from the proceeds of the crimes charged in the indictment.
If convicted on the health care fraud charges, Heilbron faces a statutory maximum penalty of ten years in prison. If convicted on the wire fraud charges, Heilbron faces a statutory maximum penalty of 20 years in prison. Maximum potential sentences are prescribed by Congress and are provided for informational purposes only. The sentence to be imposed on a defendant is determined by the court.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Santa Fe and Albuquerque offices of the FBI and is being prosecuted by Assistant U.S. Attorney C. Paige Messec.
heilbron_indictment.pdf (609.73 KB)
Sacramento Man Sentenced to 5 Years in Prison for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — Humberto Lozano III, 27, of Sacramento, was sentenced today by United States District Judge Kimberly J. Mueller to five years in prison for receiving child pornography, United States Attorney Benjamin B. Wagner announced. Lozano was ordered to begin serving his sentence on September 2, 2015. On release, he will be required to register as a sex offender.
According to court documents, in March 2013, America Online shut down Lozano’s email account because it had been used to distribute child pornography. AOL reported the account to law enforcement. When law enforcement obtained a search warrant for the email account, a total of 1360 images and 21 videos of child pornography were found. After his account was shut down, Lozano opened an new email account, this time at Yahoo!. He used that account to solicit images of child pornography. Between March 11, 2013, and July 1, 2013, approximately 1,300 images and 30 videos of child pornography were received. Investigators recovered a hard drive in Lozano’s possession and applied computer forensic tools to recover 4,000 deleted images of child pornography and child erotica.
According to the plea agreement, a child was rescued as a result of this investigation. One of the 4,000 deleted images still contained location data. It was of a child subject to sexual abuse in the Netherlands. That information was passed to Dutch law enforcement, who used it to find the child and rescue her from ongoing abuse.
In sentencing, Judge Mueller stated: “They are real victims even if there is no physical contact. There is ongoing trauma by virtue of knowing that the images are out there.”
This case was the product of FBI Child Exploitation Task Force/Innocent Images National Initiative in partnership with the Sacramento Sheriff's Office Internet Crimes Against Children Task Force. Assistant United States Attorney Matthew D. Segal prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Summer Camps Must Reasonably Accommodate Children with DisabilitiesRead the Press Release
Summer camps are legally required to make reasonable accommodations to accept children with disabilities, U.S. Attorney Wifredo A. Ferrer announced today.
To help ensure that children with disabilities receive the opportunity to attend summer camp, the U.S. Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the Southern District of Florida reminding them of their obligations under the Americans with Disabilities Act (“ADA”).
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
“Summer camps represent a cherished pastime where children are given tremendous growth opportunities to learn independence, try novel activities while simultaneously building self-confidence,” Ferrer said. “The law requires camps to provide equal opportunities to disabled children whose needs can be reasonably accommodated.”
Additional information about the ADA is available at www.ada.gov, or through contacting the U.S. Attorney’s Office Civil Rights Coordinator (305) 961-9327.
St. Croix Man Sentenced to Four Years of Probation for Manufacturing MarijuanaRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis, today, sentenced Luke Lubrin, 46, of St. Croix, to four years of probation for manufacturing marijuana, United States Attorney Ronald W. Sharpe announced.
In February, Lubrin pleaded guilty to one count of manufacture of marijuana. As part of his plea, Lubrin admitted to growing marijuana on his property in Frederiksted, St. Croix. On June 26, 2014, a total of 58 marijuana plants were found on Lubrin’s property by special agents with the United States Drug Enforcement Administration (DEA).
As part of the term of probation, Lubrin was sentenced to serve six months of home confinement and pay a $1,000 fine.
The case was investigated by DEA and was prosecuted by Assistant U.S. Attorneys Rami S. Badawy and Alphonso Andrews.
Rockville Man Sentenced to 15 Years in Prison for “Sextortion”Read the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Marc Joseph Punzalan, age 21, of Rockville, Maryland, today to 15 years in prison followed by a lifetime of supervised release for producing child pornography in connection with a scheme in which he met young girls through social media and internet chat rooms and convinced them to send him sexually explicit photographs of themselves. When the girls told him they no longer wanted to send the increasingly graphic images he requested, Punzalan threatened to post the images online and/or tell the girls’ friends and families.
Judge Motz also ordered that Punzulan pay restitution of $10,000, and that upon his release from prison, Punzalan must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to Punzalan’s plea agreement, from January 2012 through January 2014, he contacted four minor female victims between 12 and 16 years of age, and persuaded them to send him sexually explicit photographs of themselves, using cell phone applications, and internet social media and chat messaging sites. Punzalan assumed the identity of at least one minor victim and used that victim’s identity to convince other minor females to send him sexually explicit images.
Each of the victims informed Punzalan at different points that she no longer wished to send him sexually explicit images. Punzalan responded to each girl by threatening to send the images to the victim’s family and friends or publicly post the images if the victim did not send him more images depicting increasingly graphic sexual conduct. Punzalan created social media accounts in the victims’ names and posted images he had received of the victims on those accounts.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Robber Admits Dragging Employee by Hair During Bank Robbery in Overland ParkRead the Press Release
TOPEKA, KAN. - A Kansas City man pleaded guilty Tuesday to a federal bank robbery charge and admitted threatening employees with a gun and dragging a woman by her hair, U.S. Attorney Barry Grissom said.
Clifton B. Cloyd, 54, Kansas City, Mo., pleaded guilty to one count of bank robbery and one count of brandishing a firearm during the robbery. On Oct. 29, 2014, he and another man robbed the Bank of America at 9500 Mission in Overland Park, Kan. In his plea, Cloyd admitted:
- He and his accomplice held five bank employees and one customer at gunpoint.
- Cloyd, who was carrying a handgun, grabbed one of the bank employees and pulled her by the hair and scarf to the teller station. He struck her in the face with a handgun.
- Cloyd struck a customer so hard her glasses flew off and she was knocked to the floor.
- Cloyd struck a male bank employee with such force that his head started bleeding.
Sentencing is set for Sept. 14. He faces a penalty of not less than 10 years and not more than 25 years in federal prison and a fine up to $250,000 on the bank robbery charge, and a penalty of not less than seven years and a fine up to $250,000 on the firearm charge.
Co-defendant Steve A. Watts, 55, Mo., is awaiting trial.
Grissom commended the Overland Park Police Department, the Prairie Village Police Department, the Leawood Police Department, the FBI and Assistant U.S. Attorney David Zabel for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Richmond Men Sentenced to Prison for Roles in EZ Mart ShootoutRead the Press Release
RICHMOND, Va. – Deandre Yellardy, 24, of Richmond, was sentenced today to 120 months in prison, followed by three years of supervised release for possession of a firearm by a convicted felon. William Bell, 30, also of Richmond, was sentenced yesterday to 84 months in prison, followed by three years of supervised release for possession of a firearm by a convicted felon and possession with the intent to distribute cocaine base. Both charges stem from a June 12, 2014, shootout in the parking lot of the EZ Mart convenience store in Southside Richmond.
Yellardy plead guilty on March 20, 2015, and Bell pleaded guilty on March 31, 2015. According to court documents, on June 12, 2014, a masked gunman later identified as Yellardy fired multiple shots into a vehicle occupied by Bell in the parking lot of the South Richmond EZ Mart convenience store. Both Bell and his passenger were wounded. Bell returned fire with a .40 caliber pistol, but failed to hit Yellardy. Richmond Police officers stopped Yellardy in a vehicle as he was fleeing the scene and recovered both a 9mm firearm and mask in his possession. Bell fled the scene and failed to report the incident to police. Shell casings from the EZ Mart shooting scene were later matched to the gun recovered from Yellardy. At the time of the shooting, Yellardy was a convicted felon, and as a result, was prohibited from possessing a firearm.
On Sept. 22, 2014, Bell refused to stop for a Virginia State Police Trooper in Richmond related to a traffic offense. During the ensuing pursuit, Bell threw a .40 caliber pistol and approximately 13 grams of cocaine base from his vehicle. The firearm and cocaine were later recovered. Shell casings from the EZ Mart shooting scene were later forensically matched to the gun recovered from Bell. At the time of both incidents, Bell was a convicted felon, and as a result, was prohibited from possessing a firearm.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
This case was investigated by the ATF’s Washington Field Division, the Richmond Police Department, and the Virginia State Police. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No.’s 3:15-cr-19 and 3:15cr20.
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Readout of Attorney General Lynch's Visits to Raleigh-Durham, North CarolinaRead the Press Release
On her first official visit to her home state of North Carolina, Attorney General Loretta E. Lynch traveled today to Durham and Raleigh to attend meetings with civil rights leaders and individuals combatting human trafficking.
In Durham, the Attorney General held a civil rights roundtable meeting with law enforcement, local officials, community leaders, students and faith leaders. The topics discussed at the roundtable, which was held at the North Carolina Central University the School of Law, included hate crimes, voting rights and community-police relations.
During the roundtable, the Attorney General noted recent events in the South have brought back painful memories of the past for many.
“These are in fact challenging times as we all know,” the Attorney General told those assembled. “You’ve alluded to the recent events that have traumatized many of our houses of worship. There have also been events traumatizing many of our individuals of color. Also, of course, the events just a few weeks ago in Charleston highlight days that I think many of us thought were behind us.”
The Attorney General also noted that the Justice Department continues to investigate the heartbreaking church shooting in Charleston, reiterating that the investigation will explore “all angles, be it hate crime or domestic terrorism.”
She also spoke about the recent spate of church fires in southern states, saying that the department does not yet have all the details but that those incidents “have our full attention.”
“This is a serious issue that we will be addressing with the appropriate care and we will see where those matters lead us,” she said.
The Attorney General also emphasized her commitment to pursuing the justice in the face of hate crimes and civil rights abuses.
“While we cannot guarantee the absence of hate, we can guarantee the presence of justice. We could do that. And I am committed, as Attorney General, to making good on that guarantee,” the Attorney General said. “And I know that everyone in this room has spent most of their lives working towards living up to that guarantee and I’m so happy to count you as partners in this fight because it’s a fight that will cover all types of issues -- the traditional ones that we’ve seen here as well as the new threats that our newest citizens face, all of the things that make this country great. Sometimes people are looking to push back on that. But I want you to know that the Department of Justice and this Attorney General is committed to working with you in this fight.”
While in Raleigh, the Attorney General met with the North Carolina Coalition Against Human Trafficking and lauded their “cooperative and innovative approach,” including their efforts to bring together state and local leaders, law enforcement officials and legal and social service organizations. She highlighted the importance of having law enforcement team up with direct service agencies and first responders as a way to ensure that traffickers are brought to justice and survivors receive the support they need.
“One of my top priorities as Attorney General is to bring human traffickers to justice, assist trafficking survivors and secure the rights and dignity of anyone unable to do so for themselves,” the Attorney General said. “But as the people in this room are all too aware, responding to a crime as complex and as devastating as human trafficking is neither easy nor straightforward. Such crimes must be fought persistently and aggressively, while drawing on ingenuity and collaboration across many disciplines, organizations and professions.”
The Attorney General also praised the work of U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina and U.S. Attorney Ripley Rand of the Middle District of North Carolina, whose offices have had recent successes in holding traffickers accountable. The Attorney General highlighted the Justice Department’s recent announcement on the success of an interagency Anti-Trafficking Coordination Team Initiative – or ACTeam Initiative – and the expansion of those efforts to other parts of the country.
The Attorney General also met with local officers from the Durham Police Department to thank them for their service and for being on the front lines to advance public safety. The Attorney General also stressed the importance of improving relationships, trust and respect between law enforcement and the communities they serve.
The Attorney General was joined on her visits in Durham and Raleigh by U.S. Attorney Walker and U.S. Attorney Rand.
Participants in the Durham civil rights roundtable included:
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Attorney General Loretta E. Lynch, Office of the Attorney General
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U.S. Attorney Thomas G. Walker, United States Attorney’s Office for the Eastern District of North Carolina
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Mayor William “Bill” Bell, City of Durham
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U.S. Representative G.K. Butterfield
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District Liaison Sonia Price, Office of U.S. Representative David Price
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Professor James Coleman, Duke Law School
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Chancellor Debra Saunders-White, North Carolina Central University
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Dean Phyliss Craig Taylor, North Carolina Central University School of Law
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Professor Irving Joyner, North Carolina Central School of Law
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President Everett Ward, St. Augustine’s University
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President-Elect Tashni Dubroy, Shaw University
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Chief Cassandra Deck-Brown, Raleigh Police Department
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Chief Jose Lopez, Durham Police Department
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Chief Chris Blue, Chapel Hill Police
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Reverend Lorenzo Lynch
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Reverend Marion Robinson, St. Matthews AME Church
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Reverend Earl Johnson, President, Raleigh-Wake Citizens Association; Martin Street Baptist Church
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Reverend Nancy Petty, Pullen Memorial Baptist Church
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Reverend Paul Anderson, President of Raleigh Ministerial Alliance
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Reverend William Everett, President of Interdenominational Ministers Alliance of Durham
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Imam Adeel Zeb, Director of Muslim Life at Duke University
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Imam Oliver Mohammed, Chaplain at Butner Federal Correctional Complex and As Salaam Islamic Center
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Zainab Baloch, North Carolina State Muslim Association
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Hamzu Butler, UNC-Chapel Hill Muslim Association
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Rabbi Lucy Dinner, Temple Beth Or
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Rabbi Larry Bach, Judea Reform Congregation
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Bhupinder Singh, Sihk Gurdwara of North Carolina
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President William Barber, North Carolina NAACP
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President Fred Foster, North Carolina NAACP (Durham)
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President Ralph Hunt Sr., Durham Committee on the Affairs of Black People
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Chris Sgro, Executive Director of Equality NC
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Helena Cragg, LGBT Center of Durham
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Civic Engagement Manager Juliana Cabrales, National Association of Latino Elected and Appointed Officials
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Executive Director Angeline Echevarria, El Pueblo Inc.
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President Pilar Rocha-Goldberg, El Centro Hispano
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Janice McKenzie Cole, Cole Immigration Law Center
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Quality Egg Manager Sentenced in Connection with Conspiracy to Bribe U.S. Department of Agriculture Egg InspectorRead the Press Release
SIOUX CITY – A former marketing manager at egg production and processing facilities who participated in a conspiracy to bribe a U.S. Department of Agriculture (USDA) inspector, to sell restricted eggs with intent to defraud, and to introduce misbranded food into interstate commerce with intent to defraud and mislead was sentenced yesterday in federal district court in Sioux City, Iowa, the U.S. Attorney’s Office of the Northern District of Iowa announced.
Tony Wasmund, 64, of Willmar, Minnesota, the head of marketing at Quality Egg LLC of Galt, Iowa, was sentenced to four years’ probation by U.S. District Court Judge Mark W. Bennett in the Northern District of Iowa.
Quality Egg LLC pleaded guilty to paying at least two cash bribes to a USDA inspector, who is now deceased, to procure the release of shell eggs that had been retained for quality issues. The USDA inspector’s job responsibilities included inspecting shell eggs at one or more of Quality Egg’s production facilities in Iowa, and the inspector had retained or “red tagged” several thousand dozens of eggs for failing to meet minimum USDA quality grade standards.
Wasmund admitted at his September 2012 plea hearing that he conspired with at least one other person to bribe the inspector, sell restricted eggs with intent to defraud, and introduce misbranded food into interstate commerce with intent to defraud and mislead. Wasmund described how, on or about April 12, 2010, as part of the conspiracy, he authorized the disbursement of $300 in petty cash from Quality Egg knowing the cash was to be used to bribe a USDA inspector. After the bribe was paid, the eggs were released, labeled as meeting minimum USDA quality grade standards, and sold and shipped to customers in several states.
The case was prosecuted by Assistant U.S. Attorney Peter Deegan of the Northern District of Iowa and Trial Attorneys Lisa Hsiao and Christopher Parisi of the Civil Division’s Consumer Protection Branch. They were assisted by Associate Chief Counsel Michael Varrone of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the USDA’s Office of Inspector General and the FBI.
Fighting public corruption is a Department of Justice priority. The public is encouraged to report any known instances of public corruption to the FBI's Public Corruption Tip Line at 844-4PC-TIPS. Information can also be sent via e-mail to [email protected].
Court file information: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-CR-3041.
Follow us on Twitter @USAO_NDIA.
Portales Man Sentenced to Eight Years for Federal Narcotics Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Justin Thomas Shipley, 31, of Portales, N.M., was sentenced today in federal court in Las Cruces, N.M., to eight years in prison for his methamphetamine trafficking and firearms conviction. Shipley will be on supervised release for three years after completing his prison sentence.
Shipley and co-defendant, Brandon William Wood, 36, also of Portales, N.M., were arrested on April 24, 2014, in Otero County, N.M., on a criminal complaint charging them with methamphetamine trafficking charges. They subsequently were indicted on methamphetamine trafficking and firearms charges in a six-count indictment filed on July 16, 2014.
The indictment alleged that in April 2014, in Otero County, Shipley and Wood participated in a conspiracy to distribute large quantities of methamphetamine, and also charged the two men with possession of methamphetamine with intent to distribute. The indictment further charged Wood and Shipley with using and carrying firearms in relation to a drug trafficking crime and Wood with being a felon in possession of firearms and ammunition.
In July 2014, Wood was prohibited from possessing firearms and ammunition because he had been convicted of several felony offenses, including conspiracy to sell controlled substances, manufacturing, sale and possession of controlled substances, conspiracy to cultivate marijuana, and driving while intoxicated.
On Dec. 12, 2014, Shipley pled guilty to a felony information charging him with participation in a methamphetamine trafficking conspiracy, distribution of methamphetamine; and using and carrying a firearm in relation to a drug trafficking crime. In entering his guilty plea, Shipley admitted that beginning on April 18, 2014, he conspired with Wood to sell 80 grams of methamphetamine which was to be distributed in Portales. Shipley admitted that they obtained the methamphetamine in Arizona on April 22, 2014. Shipley and Wood were transporting the drugs from Arizona to Portales on April 24, 2014, when they were arrested at the U.S. Border Patrol Checkpoint near Alamogordo, N.M., after Border Patrol agents found approximately 80 grams of methamphetamine, a shotgun and a handgun in Shipley’s vehicle during a routine vehicle inspection.
On April 1, 2015, Wood also pled guilty to a felony information charging him with participation in a methamphetamine trafficking conspiracy, possession of methamphetamine with intent to distribute, using and carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm and ammunition. Wood admitted to having a gun and ammunition because he was transporting methamphetamine even though he knew that he was not allowed to possess the firearms and ammunition because he had been convicted of at least four felonies. Wood was sentenced on June 23, 2015, to ten years in federal prison followed by three years of supervised release.
This case was investigated by the Las Cruces office of the DEA and the Alamogordo Station of the U.S. Border Patrol. Assistant U.S. Attorney Anna Wright of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Phoenix Man Sentenced to 144 Months in Prison for Defrauding Arizona InvestorsRead the Press Release
PHOENIX – On June 29, 2015, Vernon Smith, 53, of Phoenix, Ariz. was sentenced by U.S. District Judge Susan R. Bolton to 144 months in federal prison on fraud charges and ordered to pay restitution to the victims. Earlier this year, Smith pleaded guilty to committing wire fraud by defrauding six Arizona investors out of approximately $229,000 in a variety of investment scams. When Smith committed these crimes, he was on supervised release in a second federal fraud case prosecuted in Oregon and on probation for a third fraud case prosecuted by the State of Arizona.
“The U.S. Attorney’s Office is committed to protecting the investing public from fraud, particularly from serial financial predators like Vernon Smith. This lengthy sentence should serve as a strong deterrent to others who would defraud the public,” stated United States Attorney John Leonardo. Mr. Leonardo thanked the FBI for their hard work and dedication through the course of the investigation and prosecution. “The number of victims and losses would have increased exponentially if the FBI hadn’t detected the criminal activity and acted quickly to end it,” stated Mr. Leonardo.
From October of 2013 to June of 2014, Smith – then a two-time convicted felon with no legitimate financial education or experience – posed as a wealthy, retired investment banker, residing in a 10,000 square foot Scottsdale home and driving an Aston Martin Vantage. He convinced six Phoenix-area victims to invest in either an African gold-mine venture or foreign bonds, both bogus investments. He used the victims’ money to support his lavish lifestyle and, at times, he used later victims’ money to make payments to earlier victims. Smith ultimately attempted to defraud an FBI undercover operative, and he was indicted and arrested in August of 2014. After serving his 144-month and 7-month federal prison sentences, Smith faces probation revocation proceedings and prison time in state court arising out of a state court conviction for fraud he committed in 2002.
The investigation in this case was conducted by the Phoenix Division of the Federal Bureau of Investigation. The prosecution was handled by Monica Klapper, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-01108-PHX
RELEASE NUMBER: 2015-050_Smith
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Pennsylvania Man Charged with Robbing the Same Atlantic City, New Jersey, Bank He Robbed in 2010Read the Press Release
CAMDEN, N.J. - A Philadelphia man will appear in federal court today to face charges that while on supervised release, he robbed the same Cape Bank in Atlantic City, New Jersey, that he admitted robbing in 2010, U.S. Attorney Paul J. Fishman announced.
Keith Ney, 54, is charged by complaint with one count of bank robbery. He is currently in state custody on related charges. He will appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to the complaint:
Ney was previously convicted of two counts of bank robbery on Sept. 16, 2011, and later sentenced to a term of 57 months in prison. During his plea hearing, he admitted robbing the Cape Bank at 1501 Pacific Avenue in Atlantic City and the Citizens Bank at 1234 Market Street in Philadelphia in 2010.
On April 23, 2015, Ney, who had recently finished his prison term and was on supervised release, allegedly entered the same Cape Bank in Atlantic City, approached a teller and produced a demand note that read, “I have a gun give money no one will get shot.” Ney, who was not wearing a mask or disguise, was allegedly captured on the bank’s surveillance system.
After taking the cash, Ney fled the bank on foot. A bank employee exited the bank, approached an Atlantic City police officer who was working a traffic detail and told the officer that the bank had just been robbed. Nay was immediately spotted and taken into custody. After being apprehended, Ney allegedly admitted his involvement in the April 23, 2015 Cape Bank robbery.
The bank robbery count with which Ney is charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Ney also faces two additional years in prison as a result of violating the terms of his supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Edward W. Hanko in Philadelphia; the Atlantic City Police Department under the direction of Chief Henry White; and the Atlantic County Prosecutor’s Office under the direction of Prosecutor James P. McClain with the investigation leading to the charges.
The charge in the complaint is merely an accusation, and Ney is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel: Edward F. Borden Jr. Esq., Cherry Hill, New Jersey
Owner of Charlotte-Area Metal & Salvage Business Pleads Guilty to Tax EvasionRead the Press Release
CHARLOTTE, N.C. – The owner of Charlotte-area metal and salvage business pleaded guilty to tax evasion today, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Sammie Marks a/k/a Sammy Marks, 41, of Matthews, N.C., appeared before U.S. Magistrate Judge David Keesler and admitted to concealing from the Internal Revenue Service (IRS) personal earnings derived from his businesses, “Marks Metal & Salvage.”
According to the filed court documents and today’s plea hearing, between tax years 2009 and 2013, Marks deposited checks and cash receipts from his businesses and its customers totaling over $1.1 million into his personal bank account, which he did not include in income reported to IRS. Court records show that, during the relevant time period, Marks failed to disclose or provide records of his bank account and other information about his income to his tax return preparer. Furthermore, court records indicate Marks failed to report the additional income on his individual tax returns filed with the IRS. As a result of the unreported gross receipts, Marks had additional taxable income of $158,614.
Marks pleaded guilty to one count of tax evasion. The charge carries a maximum penalty of five years in prison and a $250,000 fine. As part of today’s plea agreement, Marks has agreed to pay restitution, the amount of which will be determined by the Court at Marks’ sentencing hearing, which has not been scheduled yet. Marks was released on bond following today’s court appearance.
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In a separate case, on Tuesday, June 30, 2015, Jeremy Curtis Anderson, 34, of Charlotte, pleaded guilty to two counts of making a false statement on a loan application. Anderson, who was formerly employed by Wells Fargo Bank as a loan documentation specialist and a consumer loan underwriter, appeared before Judge Keesler and admitted that between 2009 and 2012, he used false information, such as a false security number, false address and false employment information, on loan applications to obtained a car loan and a personal loan from a federally-insured credit union.
Anderson was released on bond following the plea hearing. The maximum penalty for the false statement on a loan application is 30 years in prison and a $1,000,000 fine per count. A sentencing hearing for Anderson has not been set yet.
Acting U.S. Attorney Rose thanked the Internal Revenue Service, Criminal Investigation Division (IRS-CI) under the direction of Special Agent in Charge Thomas J. Holloman, III, Special Agent in Charge, for the investigation of both cases. Ms. Rose also thanked Martin Mulholland, Acting Special Agent in Charge of the U.S. Secret Service in Charlotte, for his agency’s assistance with Anderson’s investigation.
Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution of both cases.
Orange County, Texas Man Guilty of Possessing Child PornographyRead the Press Release
BEAUMONT, Texas – A 28-year-old Orange, Texas man pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jonathan Michael Swearingen pleaded guilty to possession of child pornography today before U.S. Magistrate Judge Zachary J. Hawthorn.
According to information presented in court, on Sep. 4, 2013, federal agents executed a search warrant at Swearingen’s residence in Orange, Texas, after authorities identified a computer Internet Protocol (IP) address belonging to Swearingen, possessing and offering images of child pornography via file sharing programs. A personal computer and digital storage devices were seized during the search. A review of the items revealed approximately 308 images and 25 videos of child pornography. Swearingen was indicted by a federal grand jury on Oct. 1, 2014 and charged with child exploitation violations.
Swearingen faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by Homeland Security Investigations (HSI), the Beaumont Police Department, the West Orange Police Department, and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
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Northwest Indiana Carnival Worker ChargedRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that a criminal complaint was filed against Brendan Theodore Coetzee, 27, of Johannesburg, South Africa for travel with intent to engage in illicit sexual conduct with a minor.
According to documents filed in the case, Coetzee, a carnival worker, met a female under the age of 14 at a carnival in Wisconsin over this past Memorial Day weekend. Coetzee and the minor maintained some contact thereafter via social media. On June 22, 2015, Coetzee, who was then in Northwest Indiana, arranged for the minor to meet him at a motel in Lansing, Illinois, where he allegedly had sexual intercourse with the minor.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Lansing, Illinois and Munster, Indiana Police Departments. The case is being prosecuted by Assistant United States Attorney Toi D. Houston.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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New Jersey U.S. Attorney’s Office Seeks Forfeiture of Taxidermied Tiger Imported into the United StatesRead the Press Release
NEWARK, N.J. – The New Jersey U.S. Attorney’s Office today announced the filing of a civil asset forfeiture action seeking the forfeiture of a full mount taxidermied female tiger (panthera tigris), which the government alleges was imported into the United States in violation of the Endangered Species Act and without a valid importation permit, U.S. Attorney Paul J. Fishman announced.
The tiger — according to the forfeiture complaint, a captive-bred female, born on Sept. 26, 2000 — was seized at the Port of Newark by wildlife inspectors with the United States Fish and Wildlife Service (“USFWS”) when its owner attempted to import the tiger into the United States as part of a household move from France.
According to the complaint filed in Newark federal court:
Tigers (panthera tigris), the largest wild cat in the world, are carnivorous mammals of prehistoric origin characterized by their coat of reddish-orange fur, which is marked by dark stripes. Trophy hunting (until it was banned), and a market for tiger rugs and coats, threatened tigers’ survival. Today, habitat destruction, human population growth, and a demand for tiger parts threaten their survival. For over 27 years, all species of tigers have been classified as endangered under U.S law and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). This classification represents the most highly protected species of wildlife, and includes those species that are threatened with extinction or whose survival is or may be affected by trade.
The importation or exportation of endangered species (alive or dead) for any purpose — including non-commercial shipment — is authorized only in exceptional circumstances, and requires an export permit from the originating country and an import permit from USFWS, one of the federal agencies responsible for enforcing the Endangered Species Act.
On Nov. 24, 2014, the tiger was included in a cargo shipment of household goods exported from the Port of Le Havre, in France. The shipment arrived in the United States at the Port of Newark on or about Dec. 3, 2014. The customs broker filed the USFWS declaration form required for the international shipment of wildlife to or from the United States and included a CITES certificate issued by the European Union. The CITES certificate, however, permitted the tiger to be transported only within the European Union and specifically stated that it was “not for use outside the European Community.”
Import and export permits for endangered species of wildlife can be obtained only if the CITES Scientific Authority of the importing country has made a determination that trade in this specimen will not be detrimental to the survival of the species and that the imported wildlife will not be used for commercial purposes. In the United States, the agency authorized to grant or deny a certificate authorizing the import of such wildlife is the USFWS’s Division of Management Authority.
The Endangered Species Act authorizes USFWS to seize any specimen that is illegally imported or exported. On Jan. 2, 2015, USFWS formally refused the shipment of the tiger. On Jan. 9, 2015, the USFWS sent notice of the seizure and its intent to forfeit the tiger to its owner, who now resides in New York City. On April 1, 2015, the owner filed a claim with USFWS contesting the forfeiture. The filing of the claim triggered the government’s obligation to either release the property or bring the forfeiture action in court, where the owner may contest it.
Civil forfeiture cases are “in rem” proceedings — or proceedings against things. In this case, the complaint is brought against the taxidermied tiger, not its owner or any other person.
U.S. Attorney Fishman credited the wildlife inspectors of the U.S. Department of the Interior’s Fish and Wildlife Service for initiating the investigation and detention of the tiger at the Port of Newark.
The government is represented by Special Assistant U.S. Attorney Sarah Devlin of the U.S. Attorney’s Office’s Asset Forfeiture and Money Laundering Unit and Assistant U.S. Attorney Kathleen P. O’Leary of the office’s Healthcare and Government Fraud Unit in Newark.
Modesto Man Pleads Guilty to Stealing More Than $316,000 of Government Property from the Tracy DLA DepotRead the Press Release
SACRAMENTO, Calif. — Eric M. Shaffer, 42, of Modesto, pleaded guilty Tuesday to three counts of theft of government property for taking Department of Defense property worth more than $316,000, United States Attorney Benjamin B. Wagner announced.
Shaffer was an employee at the Department of Defense (DoD) Logistics Agency, San Joaquin Distribution Center, in Tracy, (Tracy DLA Depot). Shaffer regularly came into contact with new goods delivered by venders to the DoD and the United States General Services Administration that were stored at the Tracy DLA Depot before being shipped to military bases in the Pacific Ocean region and elsewhere.
According to court documents, between February 27, 2011, and January 3, 2015, Shaffer sold more than 620 items of stolen government property through approximately 325 auctions on a popular online auction website. He also completed more than 40 private sales of stolen government property to customers who paid Shaffer via an online payment system. Shaffer’s scheme generated approximately $238,000 in illicit revenue. The approximate replacement value of the property exceeds $316,000. Among other items, Shaffer admitted to stealing a GE Video Borescope kit, valued at $10,674; three Cisco TelePresence 8-inch LCD Touch Panels, total value of $4,700; and four Cisco Ethernet switches and a Panasonic Memory Card Drive with a replacement value of $5,000.
This case is the product of an investigation by the General Services Administration, Office of Inspector General; the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and the Department of Defense, Defense Criminal Investigative Service. Assistant United States Attorney André M. Espinosa is prosecuting the case.
Shaffer is scheduled to appear before U.S. District Judge John A. Mendez on October 6, 2015, for sentencing. The maximum statutory penalty for a violation of theft of government property is 10 years in prison. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Man Who Robbed Armored Vehicle Guard at Las Vegas Casino Sentenced to 14 Years in PrisonRead the Press Release
LAS VEGAS, Nev. – A man who was part of a crew that robbed an armored vehicle security guard outside a Las Vegas casino in December 2009, has been sentenced to 14 years in prison, five years of supervised release, and ordered to pay $36,320 in restitution, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Arquarius Robertson, 31, of Las Vegas, was sentenced on Tuesday, June 30, by U.S. District Judge Jennifer A. Dorsey. Robertson pleaded guilty in March to one count of conspiracy to interfere with commerce by robbery and one count of using and carrying a firearm during and in relation to a crime of violence. Two co-defendants, Williams Morrow and Cortaz Robertson, also pleaded guilty and are scheduled for sentencing in July.
“Congress created strong federal penalties for persons convicted of using a firearm to commit a robbery,” said U.S. Attorney Bogden. “We work with our local law enforcement partners on a regular basis to review these violent crimes, and have made it a top priority to use federal laws to prosecute these violent criminals when possible.”
According to the plea agreement, on Dec. 14, 2009, at about 8:45 a.m., Robertson and his co-conspirators stole approximately $36,320 from an armored security guard who had just exited the Las Vegas casino with money and checks from the casino’s cashier cage and was headed toward an armored vehicle. Robertson, who was brandishing a firearm and was disguised in make-up, a wig, a fake belly, gloves, and sunglasses, approached the security guard and ordered the guard to turn over the money. Another co-conspirator, who was also carrying a firearm and wearing a disguise, arrived on the scene in a stolen getaway vehicle and was behind Robertson as he received the money. Robertson fired a warning shot from his firearm as he got into the getaway vehicle with the co-conspirator and drove off. Other co-conspirators acted as look-outs during the robbery. The conspirators exchanged vehicles at an abandoned house about one-half mile away and met up later to divide up the money.
This case was investigated by the FBI and Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. The case was prosecuted by Assistant U.S. Attorneys Nicholas D. Dickinson, Cristina D. Silva, and Lisa Cartier-Giroux.
Man Sentenced to 17.5 Years in Prison for Methamphetamine Trafficking on MauiRead the Press Release
HONOLULU – Ruben Settle, 38, was sentenced on June 29 by Chief District Judge Susan Oki Mollway to 210 months imprisonment for his aggravated role in a plan to distribute methamphetamine on the island of Maui. Settle had previously pled guilty on March 12, 2015 to possessing, with intent to distribute 500 grams or more of methamphetamine.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the evidence presented in court showed that Settle recruited other individuals to assist him in distributing methamphetamine on Maui including approximately 700 grams of "ice" seized from Settle by Maui Police on December 17, 2014.
At the sentencing hearing, the court found that Settle, a citizen of Mexico without legal authority to be in the United States, was a threat to the public safety based on the large amount of methamphetamine involved and Settle’s long criminal history including prior drug convictions. After completing his sentence, Settle will be deported to Mexico for the second time.
The investigation which resulted in the charges in the case was conducted by Homeland Security Investigations and the Maui Police Department. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Luzerne County Woman Sentenced to Three Years in Prison for Conspiracy to Distribute Bath SaltsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tiffany Pradel, age 31, of Dupont, Pennsylvania, was sentenced to 36 months’ imprisonment by United States District Court Judge Malachy E. Mannion for participating in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney Peter Smith, Pradel pleaded guilty in January 2015 to her involvement in the conspiracy which was responsible for distributing large quantities of alpha-pvp, a controlled substance analogue, to others during 2011 through 2013.
Pradel was indicted by a federal grand jury in August 2014, following an investigation by Department of Homeland Security agents, the Pennsylvania State Police, and West Pittston Police.
Judge Mannion also ordered Pradel to serve three years on supervised release following her prison sentence, and to pay a special assessment of $100.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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Louisiana Motel Owner Pleads Guilty in Sex Trafficking CaseRead the Press Release
WASHINGTON – Today, a motel owner pleaded guilty to financially benefiting from a sex trafficking scheme operated out of the Riviera Motel in New Orleans in which multiple adult women were compelled to engage in prostitution, announced head of the Civil Rights Division Principal Deputy Assistant Attorney General Vanita Gupta and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana. Kanubhai Patel, also known as Mr. Kenny and Pop, 74, of Kenner, Louisiana, pleaded guilty to one count of benefitting financially from trafficking in persons.
“The Department of Justice will not tolerate those who traffic in human beings or who benefit financially from human trafficking,” said Principal Deputy Assistant Attorney General Gupta. “We will continue in our steadfast determination to bring to justice not only those who use force and coercion to exploit other human beings—but also those entities or individuals who knowingly profit from these depraved acts.”
“This defendant callously profited from a sex trafficking venture that used force, fraud and coercion to compel women to engage in commercial sex acts,” said U.S. Attorney Polite. “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office is committed to prosecuting individuals and organizations that profit from this illegal conduct.”
“This investigation and prosecution should serve as a clear reminder to all those individuals engaged in sex trafficking and those who profit from this heinous crime, that the full force of federal law enforcement, across geographical boundaries, will bring them to swift justice,” said Special Agent in Charge Michael Anderson of the FBI’s New Orleans Office.
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Acting Special Agent in Charge Cindy M. Johnson of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New Orleans. “The results speak for themselves; over the past two years HSI has doubled its number of human trafficking arrests. HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
According to evidence presented in court and documents filed in connection with the case, Patel acknowledged that, in his role as the former owner of the Riviera Motel, he regularly rented rooms to individuals who are charged as sex trafficking co-conspirators in connection with this case, knowing they were pimps who forced and coerced women to engage in prostitution. Patel admitted that although he never personally recruited, groomed or coerced any of the victims, he benefited financially from the sex trafficking operation.
Evidence presented at the plea hearing and court documents establish that Patel would charge the pimps and sex trafficking co-conspirators higher rates than other motel guests, and would open the motel’s gate to allow the women to bring customers back to the hotel. Patel learned that members of the sex trafficking conspiracy physically assaulted women they prostituted, including one instance in which a co-conspirator brutally beat one woman with a large piece of wood while she screamed for help, leaving her with multiple lacerations and what appeared to be a broken arm. Patel also saw the damage that a co-conspirator caused to a motel room during a beating, including a broken toilet, a damaged sink and blood on the walls. Patel agreed not to call the police after the co-conspirator paid him for the damage to the room. Patel also knew that, in furtherance of the sex trafficking scheme, members of the sex trafficking conspiracy would take the women’s identification cards from them. Patel saw the sex trafficking co-conspirators possessing the women’s identification cards and using them to rent hotels. Patel did not report them to police as long as they paid their rent.
At sentencing, Patel faces a statutory maximum sentence of five years in prison for benefiting financially from participating in a trafficking scheme involving control of victims’ identification documents.
Five other defendants have pleaded guilty in connection with the case. On June 25, 2014, Zacchaeus Taylor, 22, pleaded guilty to sex trafficking conspiracy and to transportation for purposes of prostitution. Laquentin Brown, 33, and Anthony Ellis, 26, subsequently pleaded guilty to the same charges on March 4, 2015, and April 20, 2015, respectively. All of these defendants are from Memphis, Tennessee, and each faces a statutory maximum sentence of five years in prison for conspiracy and a statutory maximum sentence of 10 years in prison for transportation for prostitution.
On April 20, 2015, Duane Phillips, 29, and Christopher Williams, 30, also of Memphis, each pleaded guilty to sex trafficking conspiracy. They each face a statutory maximum sentence of life in prison.
Patel was charged in a second superseding indictment returned on Oct. 3, 2014, along with Brown, Ellis, Philips, Williams and Granville Robinson, 26, also of Memphis. Taylor was charged separately on March 28, 2014. Of the seven defendants charged in connection with the case, six have entered guilty pleas and Robinson is awaiting trial. An indictment is merely an accusation and the defendants are innocent until proven guilty.
This case was investigated jointly by agents from the New Orleans Field Offices of the FBI and Department of Homeland Security, with assistance from the FBI’s Memphis Field Office. This case is being prosecuted by Special Litigation Counsel John Cotton Richmond and Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Kanubhai Patel Factual Basis (36.06 KB)
Louisiana Motel Owner Pleads Guilty in Sex Trafficking CaseRead the Press Release
Sex Trafficking Scheme Used Threats, Violence and Coercion to Compel Women into Prostitution in New Orleans and Elsewhere
Today, a motel owner pleaded guilty to financially benefiting from a sex trafficking scheme operated out of the Riviera Motel in New Orleans in which multiple adult women were compelled to engage in prostitution, announced head of the Civil Rights Division Principal Deputy Assistant Attorney General Vanita Gupta and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana. Kanubhai Patel, also known as Mr. Kenny and Pop, 74, of Kenner, Louisiana, pleaded guilty to one count of benefitting financially from trafficking in persons.
“The Department of Justice will not tolerate those who traffic in human beings or who benefit financially from human trafficking,” said Principal Deputy Assistant Attorney General Gupta. “We will continue in our steadfast determination to bring to justice not only those who use force and coercion to exploit other human beings—but also those entities or individuals who knowingly profit from these depraved acts.”
“This defendant callously profited from a sex trafficking venture that used force, fraud and coercion to compel women to engage in commercial sex acts,” said U.S. Attorney Polite. “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office is committed to prosecuting individuals and organizations that profit from this illegal conduct.”
“This investigation and prosecution should serve as a clear reminder to all those individuals engaged in sex trafficking and those who profit from this heinous crime, that the full force of federal law enforcement, across geographical boundaries, will bring them to swift justice,” said Special Agent in Charge Michael Anderson of the FBI’s New Orleans Office.
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Acting Special Agent in Charge Cindy M. Johnson of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New Orleans. “The results speak for themselves; over the past two years HSI has doubled its number of human trafficking arrests. HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
According to evidence presented in court and documents filed in connection with the case, Patel acknowledged that, in his role as the former owner of the Riviera Motel, he regularly rented rooms to individuals who are charged as sex trafficking co-conspirators in connection with this case, knowing they were pimps who forced and coerced women to engage in prostitution. Patel admitted that although he never personally recruited, groomed or coerced any of the victims, he benefited financially from the sex trafficking operation.
Evidence presented at the plea hearing and court documents establish that Patel would charge the pimps and sex trafficking co-conspirators higher rates than other motel guests, and would open the motel’s gate to allow the women to bring customers back to the hotel. Patel learned that members of the sex trafficking conspiracy physically assaulted women they prostituted, including one instance in which a co-conspirator brutally beat one woman with a large piece of wood while she screamed for help, leaving her with multiple lacerations and what appeared to be a broken arm. Patel also saw the damage that a co-conspirator caused to a motel room during a beating, including a broken toilet, a damaged sink and blood on the walls. Patel agreed not to call the police after the co-conspirator paid him for the damage to the room. Patel also knew that, in furtherance of the sex trafficking scheme, members of the sex trafficking conspiracy would take the women’s identification cards from them. Patel saw the sex trafficking co-conspirators possessing the women’s identification cards and using them to rent hotels. Patel did not report them to police as long as they paid their rent.
At sentencing, Patel faces a statutory maximum sentence of five years in prison for benefiting financially from participating in a trafficking scheme involving control of victims’ identification documents.
Five other defendants have pleaded guilty in connection with the case. On June 25, 2014, Zacchaeus Taylor, 22, pleaded guilty to sex trafficking conspiracy and to transportation for purposes of prostitution. Laquentin Brown, 33, and Anthony Ellis, 26, subsequently pleaded guilty to the same charges on March 4, 2015, and April 20, 2015, respectively. All of these defendants are from Memphis, Tennessee, and each faces a statutory maximum sentence of five years in prison for conspiracy and a statutory maximum sentence of 10 years in prison for transportation for prostitution.
On April 20, 2015, Duane Phillips, 29, and Christopher Williams, 30, also of Memphis, each pleaded guilty to sex trafficking conspiracy. They each face a statutory maximum sentence of life in prison.
Patel was charged in a second superseding indictment returned on Oct. 3, 2014, along with Brown, Ellis, Philips, Williams and Granville Robinson, 26, also of Memphis. Taylor was charged separately on March 28, 2014. Of the seven defendants charged in connection with the case, six have entered guilty pleas and Robinson is awaiting trial. An indictment is merely an accusation and the defendants are innocent until proven guilty.
This case was investigated jointly by agents from the New Orleans Field Offices of the FBI and Department of Homeland Security, with assistance from the FBI’s Memphis Field Office. This case is being prosecuted by Special Litigation Counsel John Cotton Richmond and Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
KC Man Sentenced for Possessing Thousands of Images of Child PornRead 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 sentenced in federal court today for having thousands of images of child pornography on his computer.
Duane E. Elliott, 57, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to seven years in federal prison without parole. Elliott has also paid $3,000 in restitution to one of the victims whose images of child sexual abuse were included in his collection of child pornography.
On Oct. 28, 2014, Elliott pleaded guilty to two counts of receiving child pornography over the Internet.
A detective with the Independence, Mo., Police Department identified Elliott’s computer as sharing child pornography over the Internet. Elliott used a peer-to-peer file-sharing program to make approximately 20 movies of child pornography available for distribution over the Internet on multiple occasions.
Law enforcement officers executed a search warrant at Elliott’s residence and seized multiple computers and electronic storage media, which contained thousands of images of child pornography. Investigators found more than 1,000 movies and more than 2,500 images of child pornography. Some of the movies depicted sexually explicit conduct with children under the age of 12, and some depicted children in bondage or subjected to other sadistic or violent sexual abuse. Among the videos were two instructional videos, one titled, “How to Molest Juveniles.”
According to court documents, Elliott had more child pornography stored on an encrypted hard drive that could not be examined.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Independence, Mo., Police Department and the FBI Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Man Sentenced for Child PornRead 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 sentenced in federal court today for possessing child pornography and attempting to distribute child pornography over the Internet.
Craig E. Williams, Jr., 28, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to seven years in federal prison without parole. Williams must also pay restitution of $5,000 apiece to two of the victims, or $3,000 apiece if he pays within 30 days of the sentencing date.
On Dec. 2, 2014, Williams pleaded guilty to for possessing child pornography and attempting to distribute child pornography over the Internet.
Kansas City, Mo., police officers arrested Williams at his residence on May 16, 2013, on a felony warrant for an unrelated state case. They seized various electronic media from his residence. Forensic investigators discovered 413 videos of child pornography and more than 200 images of child pornography on a computer and three hard drives. The victims were primarily prepubescent children, including some toddlers. Some of the images depicted bestiality and child bondage.
Williams told officers that he used a peer-to-peer file-sharing program to download child pornography over the Internet. According to court documents, by the time Williams was caught he had been viewing and sharing child pornography for five years.
Williams was also being investigated by the Nixa, Mo., Police Department and the Western Missouri Cyber Crime Task Force, which were conducting separate undercover child pornography investigations and had identified Williams’s computer as sharing child pornography over the Internet. Investigators downloaded child pornography being made available by Williams on five separate occasions.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Kansas City, Mo., Police Department, the FBI, the Nixa, Mo., Police Department and the Western Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Files Antitrust Lawsuit to Stop Electrolux from Buying General Electric's Appliance BusinessRead the Press Release
The Department of Justice filed a civil antitrust lawsuit today seeking to block the acquisition of General Electric Company’s appliance business by AB Electrolux and Electrolux North America Inc., whose brands include Frigidaire. The department said that the $3.3 billion acquisition would combine two of the leading manufacturers of ranges, cooktops and wall ovens sold in the United States, eliminating competition that has benefited American consumers through lower prices and more options. According to the department’s complaint, purchasers in the United States spent over $4 billion on these major cooking appliances in 2014.
“Electrolux’s proposed acquisition of General Electric’s appliance business would leave millions of Americans vulnerable to price increases for ranges, cooktops and wall ovens, products that serve an important role in family life and represent large purchases for many households,” said Deputy Assistant Attorney General Leslie C. Overton of the Justice Department’s Antitrust Division. “This lawsuit also seeks to prevent a duopoly in the sale of these major cooking appliances to builders and other commercial purchasers, who often pass on price increases to home buyers or renters.”
The Antitrust Division’s lawsuit, which seeks to prevent the companies from merging and to preserve their existing head-to-head competition, was filed in the U.S. District Court for the District of Columbia.
Electrolux North America Inc. is an Ohio corporation headquartered in Charlotte, North Carolina. Electrolux North America Inc. makes and sells major appliances, including those under the brand names Frigidaire, Tappan and Electrolux. Electrolux’s annual major-appliance sales in the United States total approximately $2.6 billion. Electrolux North America Inc. is a wholly owned subsidiary of defendant AB Electrolux.
General Electric Company is a New York corporation headquartered in Fairfield, Connecticut. General Electric’s appliance business is based in Louisville, Kentucky. It makes and sells major appliances, including those under the brand names GE Monogram, GE Café, GE Profile, GE, GE Artistry and Hotpoint. In the United States, General Electric’s annual major appliance sales total approximately $3.4 billion.
Jury Finds Bakersfield Man Guilty of Laser Strikes on Kern County Sheriff’s HelicopterRead the Press Release
FRESNO, Calif. — After a two-day trial, Barry Lee Bowser Jr., 52, of Bakersfield, was found guilty today of one count of aiming the beam of a laser pointer at an aircraft, United States Attorney Benjamin B. Wagner announced.
According to court documents, on September 12, 2014, Bowser aimed the beam of a green laser at Air-1, a Kern County Sheriff’s helicopter while it was providing support to ground units responding to a man armed with a gun. The helicopter was struck two times by a powerful green laser from a distance of about 1/8 mile. The beam of the laser appeared to track the helicopter, which was flying at about 400 to 500 feet above the ground. The helicopter’s mission was diverted near the approach to Meadows Field Airport because of the laser strike. The pilot experienced flash blindness and eye discomfort and pain that lasted several hours.
According to evidence presented at trial, the officers pinpointed the source of the laser to a commercial property and motorhome surrounded by a chain link fence on Sillect Avenue in Bakersfield. Bowser, who was residing in the motorhome, admitted to the officers that he had just placed new batteries in the laser and was testing its capabilities.
This case is the product of an investigation by the FBI, Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar and Special Assistant U.S. Attorney Bayleigh Pettigrew are prosecuting the case.
Bowser is scheduled to be sentence by United States District Judge Lawrence J. O’Neil on September 28, 2015. Bowser faces a maximum penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2014, the Federal Aviation Administration (FAA) received 3,894 reports of incidents involving laser strikes on aircraft. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 150 reported laser incidents, with Bakersfield and Fresno leading in the number of reported incidents. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.
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Jicarilla Apache Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Raylon Castillo, 19, an enrolled member of the Jicarilla Apache Nation who resides in Dulce, N.M., pled guilty this afternoon in federal court in Las Cruces, N.M., to an indictment charging him with sexual abuse of a child.
Castillo was arrested on Dec. 18, 2014, on a criminal complaint alleging that he raped the victim, a Native American female, who was at least 12 years old but not yet 16 years of age, on July 25, 2014, on the Mescalero Apache Indian Reservation in Otero County, N.M. The complaint alleged that Castillo forced the victim to have sexual intercourse with him. Castillo was arrested on tribal charges on July 25, 2014, and remained in tribal custody until his arrest on the federal complaint.
Castillo was indicted on May 20, 2015, and charged with sexual abuse of a child who was between the ages of 12 and 16 on July 25, 2014, in Otero County. During today’s proceedings, Castillo pled guilty to the indictment.
At sentencing, Castillo faces a statutory maximum penalty of 15 years in prison followed by up to three years of supervised release. Castillo will be required to register as a sex offender after completing his term of incarceration. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services. The case is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Inver Grove Heights Man Sentenced to 37 Months in Prison for Conspiring to Traffic Counterfeit JerseysRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of BRIAN TODD GORE a/k/a “Sammy Walker,” 46, to 37 months in federal prison for conspiring to traffic counterfeit Major League Baseball, National Basketball Association, National Football League, National Hockey League and National Collegiate Athletic Association jerseys. GORE was indicted on July 9, 2014, and pleaded guilty on December 9, 2014. He was sentenced today before United States District Court Judge Patrick Schiltz.
According to the defendant’s guilty plea and documents filed in court, from November 2009 through September 2012, GORE ordered counterfeit jerseys from suppliers in China and sold them to various buyers in Minnesota and elsewhere. One such buyer was a co-conspirator, R.M., the owner of AME Sports in Roseville, Minnesota. According to R.M., Gore was R.M.’s primary supplier of counterfeit jerseys, which R.M. sold at his store.
According to the defendant’s guilty plea and documents filed in court, in February 2010, GORE and others from Minnesota traveled to Miami, Fla., to sell fake NFL jerseys at Super Bowl XLIV. They were encountered as part of a law enforcement operation in which GORE and his co-conspirators tried to sell the counterfeit apparel to undercover officers. At the time, officers seized 383 jerseys from GORE, as well as international shipping receipts showing packages sent from China.
GORE was caught again two years later in Minnesota while in possession of more than 2,000 counterfeit jerseys and hats, some of which retailed in authentic form for as much as $300 each. The total potential retail value of the goods GORE counterfeited was at least $320,000.
This case is the result of an investigation conducted by Homeland Security Investigations.
This case was prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.
Defendant Information:
BRIAN TODD GORE, 46
Inver Grove Heights, Minn.
Convicted:
- Conspiracy to traffic in counterfeit goods, 1 count
Sentenced:
- 37 months in prison
- 3 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Honduran National Sentenced for Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TONY AXELL ROMERO-MONTOYA, age 28, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal reentry of a removed alien.
U.S. District Judge Sarah R. Vance sentenced ROMERO-MONTOYA to time served, followed by one year of supervised release. ROMERO-MONTOYA will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to the court documents, on February 25, 2015, ROMERO-MONTOYA was found in the United States after having been deported previously on September 17, 2012.
U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. The case was prosecuted by Assistant United States Attorney Emily K. Greenfield.
Homestead Man Charged with Two Counts of Sex Trafficking of A ChildRead the Press Release
PITTSBURGH - An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of sex trafficking of a child, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on June 25, and sealed today, named Mario Grisom, 34, of Homestead, Pa., as the sole defendant.
According to the indictment, in and around April 2015, Grisom knowingly recruited, enticed, harbored, transported, provided and obtained a female minor, Minor A, to engage in commercial sex acts. The indictment further charges that from in and around July 2012, to in and around August 2012, Grisom knowingly attempted to recruit, entice, harbor, transport, provide and obtain a female minor, Minor B, to engage in commercial sex acts.
The law provides for a maximum total sentence of life imprisonment, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the City of Pittsburgh Bureau of Police 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Hartford Man Sentenced to 5 Years in Federal Prison for Role in Crack Cocaine Distribution RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MORRIS CARTER, JR., also known as “Chilly Mo” and “Mo,” 46, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by seven years of supervised release, for distributing crack cocaine.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, the investigation revealed that Joshua Easterling, also known as “Skeet,” “Squash” and “SQ,” controlled the distribution of crack cocaine in Hartford’s lower Vine Street area. Easterling distributed crack to other street-level dealers, and also sold the drug directly to customers. In addition, Easterling utilized individuals, including CARTER, as “pagers” or “runners” who would bring customers to Easterling, deliver small quantities of narcotics and provide information on police activity.
CARTER’s criminal history includes multiple several felony convictions, including a conviction for manslaughter in the first degree in 1990.
CARTER has been detained since his arrest on January 9, 2012. On February 28, 2013, a jury found him guilty of one count of conspiracy to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”), and one count of use of a telephone to facilitate a narcotics trafficking felony.
Easterling pleaded guilty and, on May 18, 2015, was sentenced to 120 months of imprisonment.
This matter was investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Georgia Man Sentenced for Fraudulently Obtaining Title Ii Child Insurance BenefitsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Donald Hargrave, 62, of Douglasville, GA, who was convicted of unlawfully receiving Title II Child Insurance Benefits, was sentenced to two years probation by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay $39,124 in restitution.Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that between May 2012 and July 2013, while living in Buffalo, the defendant received Title II Child Insurance Benefits from the Social Security Administration but did not use the benefits to support his son. Hargrave received a total of $39,124 to which he was not entitled.
The sentencing is the result of an investigation by the Office of the Inspector General of the Social Security Administration, under the direction of Special Agent in Charge Edward J. Ryan.
Four Steroid Distributors SentencedRead the Press Release
ATLANTA – Four steroid distributors have been sentenced for trafficking in illegal anabolic steroids. The defendants were importing raw materials from China and selling the finished product online.
"The use of illegal anabolic steroids is far from a harmless pursuit. They pose significant health risks,” said Acting U.S. Attorney John Horn. “Users of steroids could suffer kidney failure, liver damage, and younger users can even suffer heart attacks. Thankfully, USPIS and DEA agents put these distributors, who sent their illicit product across the country, out of business.”
“The sentencing’s for the suspects involved in Operation Eliteanabolx should serve as a warning to those who intend to misuse the U.S. Mail for shipping illicit drugs. The U.S. Postal Inspection Service would like to recognize and commend the efforts of our state and local counterparts who diligently investigated this case as well as the U.S. Attorney's Office of the Northern District of Georgia for their dedication and assistance in a successful resolution. The U.S. Postal Inspection Service remains vigilant in protecting the nation's mail system from all criminal activity to ensure the public's trust in a safe and secure mail system,” said Thomas L. Noyes II, Inspector in Charge, Charlotte Division.
“Steroids pose a significant health risk to users seeking to artificially enhance their athletic abilities,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented on the sentencings. “The mission of DEA is unwavering--we relentlessly pursue drug traffickers who distribute dangerous drugs that cause immeasurable damage to our communities.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In 2013, Brandon Keith Franklin and Jay Michael Reger began producing and selling anabolic steroids under the name Performance Formulations. They received raw materials for the steroids from China and sold the finished product online. Franklin and Reger were partners in the operation: Franklin managed the website and Reger mixed the raw materials to create the finished product. They hired Austin Britt Shirley and Andrew Chrismer to fill the orders. Shirley packed the orders and Chrismer mailed them. Franklin used the proceeds from his illegal steroid business to fund a lavish lifestyle, purchasing a number of luxury vehicles.
Shirley and Chrismer were arrested on May 28, 2014, when law enforcement agents with the United States Postal Inspection Service and the Drug Enforcement Administration seized tens of thousands of units of steroids from the organization. Franklin was arrested on December 3, 2014. Even after the seizures and arrests, Reger continued to manufacture steroids from his home in Woodstock, Georgia, until he was arrested on December 10, 2014.
The defendants in this case have been sentenced as follows:
- Brandon Keith Franklin, 41, of Canton, Georgia, was sentenced to two years, six months in prison to be followed by three years of supervised release. Franklin was convicted on December 16, 2014, after he pleaded guilty. His luxury vehicles were also forfeited.
- Jay Michael Reger, 30, of Woodstock, Georgia, was sentenced to two years in prison to be followed by three years of supervised release. Reger was convicted on December 16, 2014, after he pleaded guilty.
- Andrew Chrismer, 25, of Atlanta, Georgia, was sentenced to one year in prison to be followed by two years of supervised release. Chrismer was convicted on June 25, 2014, after he pleaded guilty.
- Austin Britt Shirley, 25, of Acworth, Georgia, was sentenced to two years of probation. Shirley was convicted on September 25, 2014 after he pleaded guilty.
All four defendants were all sentenced by U.S. District Judge Timothy C. Batten, Sr.
This case was investigated by the United States Postal Inspection Service and Drug Enforcement Administration.
Assistant United States Attorney Vivek Kothari prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Four Individuals Charged for Importing and Trafficking Counterfeit Apple and Sony Technology into the United StatesRead the Press Release
Four individuals were arraigned today in Newark, New Jersey, based on charges for allegedly smuggling counterfeit Sony Camcorders, Apple iPhones, iPads and iPods, from China for sale in the United States, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul Fishman of the District of New Jersey, Acting Special Agent in Charge Kevin Kelly of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Newark and Bergen County Prosecutor John Molinelli.
Andreina Becerra, 30, a Venezuelan national, and Roberto Volpe, 33, an Italian national, both residing in Miami; Jianhua Li, 40, a Chinese national and resident of Guangzhou, China; and Rosario La Marca, 52, an Italian national and resident of Italy, are charged in an eight-count indictment with importing and trafficking fake iPhones, iPads and iPods bearing counterfeit Apple trademarks and fake Camcorders bearing counterfeit Sony trademarks, as well as smuggling, structuring and international money laundering.
The defendants were arrested last week in a coordinated multi-district effort by HSI in Los Angeles, Miami and Newark. The defendants were arraigned this afternoon before U.S. District Judge Kevin McNulty of the District of New Jersey.
According to the allegations in the indictment, from July 2009 through February 2014, the defendants conspired to smuggle into the United States from China over 40,000 electronic devices and accessories, including fake iPads, iPhones and iPods, along with labels and packaging, most bearing counterfeit Apple trademarks. The indictment alleges that the estimated manufacturers’ suggested retail prices for an equivalent number of genuine items would have exceeded $15 million.
The indictment alleges that, to avoid detection by U.S. Customs officials, the devices often were shipped separately from the labels bearing counterfeit trademarks, and then were labeled and packaged after they passed through U.S. Customs and Border Protection. According to the indictment, the defendants then re-shipped the devices throughout the United States to co-conspirators. According to the indictment, proceeds from the sales of the devices were funneled back to the defendants’ accounts in Florida and New Jersey via structured cash deposits – broken into multiple deposits of less than $10,000 each to avoid bank reporting requirements. The indictment further alleges that a portion of the proceeds was then transferred to co-conspirators in Italy, further disguising the source of the funds. According to the indictment, the defendants made more than 100 illegal wire transfers totaling over $1.1 million to Li’s Hong Kong accounts to facilitate their criminal activity.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Office White Collar Crimes Squad, with significant assistance from Europol and Italian law enforcement authorities. The case is being prosecuted by Senior Counsel Evan Williams and Rudy Orjales of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Leslie Schwartz and Sarah Devlin of the District of New Jersey.
The enforcement action announced today is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.
Becerra et al Indictment
Four Individuals Charged for Importing and Trafficking Counterfeit Apple and Sony Technology into the United StatesRead the Press Release
NEWARK, N.J. – Four people were charged today for allegedly smuggling counterfeit Apple iPhones, iPads and iPods, and Sony camcorders, from China for sale in the United States, U.S. Attorney Paul Fishman of the District of New Jersey, Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Kevin Kelly of Homeland Security Investigations (HSI) in Newark and Bergen County Prosecutor John Molinelli announced.
The eight-count indictment charges Andreina Becerra, 30, a Venezuelan national, and Roberto Volpe, 33, an Italian national, both of Miami; Jianhua Li, 40, a Chinese national and resident of Guangzhou, China; and Rosario La Marca, 52, an Italian national and resident of Naples, Italy, with importing and trafficking fake iPhones, iPads and iPods bearing counterfeit Apple trademarks, and fake camcorders bearing counterfeit Sony trademarks, as well as smuggling, structuring and international money laundering.
The defendants were arrested last week in a coordinated, multi-district effort by HSI in Los Angeles, Miami and Newark. The defendants were arraigned this afternoon before U.S. District Court Judge Kevin McNulty Newark federal court.
According to the indictment:
From July 2009 through February 2014 the defendants allegedly conspired to smuggle into the United States from China more than 40,000 electronic devices and accessories. The estimated manufacturer’s suggested retail prices for an equivalent number of genuine items would have exceeded $15 million. The devices were often shipped separately from the labels bearing counterfeit trademarks in order avoid detection by Customs and Border Protection. The devices were then labeled and packaged after they passed through customs.
The defendants then allegedly re-shipped the devices to conspirators all over the United States. Proceeds from the sales of the devices were funneled back to the defendants’ accounts in Florida and New Jersey via structured cash deposits – broken into multiple deposits of less than $10,000 each to avoid bank reporting requirements – and a portion of the proceeds was then transferred to conspirators in Italy, further disguising the source of the funds.
According to the indictment, the defendants made more than 100 illegal wire transfers totaling more than $1.1 million to Li’s Hong Kong accounts to facilitate their criminal activity.
This case was jointly investigated by the HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Office White Collar Crimes Squad, with significant assistance from Europol and Italy’s Guardia di Finanza.
The government is represented by Assistant U.S. Attorneys Leslie Schwartz and Sarah Devlin of the District of New Jersey, Senior Counsel Evan Williams and Rudy Orjales of the Criminal Division’s Computer Crime and Intellectual Property Section.
The enforcement action announced today is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force was created to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state, and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to: www.justice.gov/dag/iptaskforce/.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Four Baltimore Area Drug Dealers Sentenced in Conspiracy to Distribute Cocaine and HeroinRead the Press Release
Baltimore, Maryland – Four defendants were sentenced to at least 10 years in prison in connection with a conspiracy to distribute cocaine and/or heroin, for attempting to possess with intent to distribute cocaine and/or heroin, and committing these crimes while on supervised release from previous federal convictions. All four defendants were convicted on March 20, 2015, after a nine day trial. Five other defendants previously pleaded guilty to their roles in the conspiracy.
U.S. District Judge Richard D Bennett sentenced Cornell Dion Brown, a/k/a “Nelly,” age 29, of Baltimore on June 30, 2015, to 12 years in prison, followed by five years of supervised release, for conspiracy to distribute cocaine and heroin, and for attempting to possess with intent to distribute cocaine.
On June 29, 2015, Judge Bennett sentenced Germaine Cannady, a/k/a “Jermaine Cannady,” and “Main,” age 39, to a total of 18 years in prison: 16 years in prison, followed by six years of supervised release, for the drug conviction; and two years in prison, consecutive to the sentence for the drug conviction, for violating his supervised release from two previous federal convictions. On June 26, 2015, Judge Bennett sentenced Dominic William Parker, a/k/a “Nick,” age 30, of Baltimore, to a total of 151 months in prison; 121 months in prison, followed by five years of supervised release, for the drug conviction; and an additional 30 months in prison for violating his supervised release from a previous federal conviction.
On June 25, 2015, Judge Bennett sentenced co-defendant Ronald Timothy Sampson, a/k/a “Little Ronald,” age 35, of Windsor Mills, Maryland, to a total of 13 years in prison: eight years in prison, followed by eight years of supervised release, for his role in the drug conspiracy; and five years in prison, consecutive to the sentence imposed for the drug conspiracy, for violating his supervised release from a previous federal conviction.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Assistant Special Agent in Charge Shawn Ellerman of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Anthony W. Batts of the Baltimore Police Department.
At the nine-day trial, the government argued that on August 11, 2014, each of the defendants agreed to purchase kilogram amounts of cocaine and/or heroin from a cooperating individual (CI). Law enforcement had previously seized 25 kilograms of cocaine and six kilograms of heroin from a concealed compartment in a motor home that the CI used to transport the drugs from California to Maryland. The defendants agreed to meet the CI in the parking lot of a Baltimore area mall to complete the drug transaction. The telephone calls with the defendants arranging the transactions were recorded.
Witnesses testified that Brown and co-defendant Tavon Hopkins were arrested after they arrived to pick up the four kilograms of cocaine Brown had agreed to purchase from the CI. At the time of their arrest, law enforcement recovered $157,000 in cash from a bag in their vehicle. Cannady and Parker were also arrested when they arrived at the meeting location to pick up the cocaine and heroin requested by Cannady. No cash was recovered from Cannady and Parker, although the CI explained that they were usually provided with heroin and cocaine without payment up front. Cannady and Parker had in their possession multiple cell phones and a police scanner.
According to evidence presented at trial, Sampson indicated that he wished to purchase cocaine and heroin. Sampson told the CI that he was calling up his buyers to get as much money as possible to give to the CI for the purchase of the cocaine and heroin. When Sampson met the CI to complete the drug transaction, he was also arrested. Law enforcement seized $10,500 after a search of Sampson and his vehicle.
According to court documents and their plea agreements, on August 11, 2014, Guy Agnant, Jr., Donte Taylor, and Antoine Washington were contacted by a cooperating individual (CI) concerning their desire to obtain drugs. As a result of the call from the CI, Agnant indicated to the CI that he wanted to purchase five kilograms of cocaine and Taylor indicated a desire to purchase cocaine and heroin. Agnant and Taylor went to meet the CI and were arrested. Washington traveled with co-defendant Vincent Cooper to meet the CI in order to purchase five kilograms of cocaine and one kilogram of heroin. Law enforcement saw Washington and Cooper arrive at the arranged meeting place and they were arrested. Between Washington and Cooper they had with them more than $223,000 to purchase the drugs.
Guy Bordes Agnant, Jr., age 38, of Laurel, Maryland was sentenced to 10 years in prison, for attempted possession with intent to distribute cocaine. Judge Bennett sentenced Antoine DeMarr Washington, age 42, of Washington, D.C. and Donte Eugene Taylor, age 39, of Baltimore, to 12 years in prison and five years in prison, respectively. Washington and Taylor had previously pleaded guilty to attempted possession with the intent to distribute cocaine and heroin. Vincent Cooper, age 47, of Washington, D.C., was sentenced to 11 years in prison, for his participation in the drug conspiracy and Tavon Alexander Louis Hopkins, age 38, of Baltimore also pleaded guilty and was sentenced to three years in prison.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who prosecuted the case.
Former teacher pleads guilty to purchasing a firearm for a known felonRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Jennifer Napier, 39, of East Bank, West Virginia pleaded guilty today in federal court in Charleston to straw purchasing a firearm for a person she knew to be a convicted felon. In October of 2011, Napier purchased a firearm from the Trading Post, a federally licensed firearms dealer, in Marmet, West Virginia, and she filled out a Department of Justice form required for anyone who purchases a firearm from a federally licensed dealer. On that form, Napier falsely stated that she was the transferee/buyer of the firearm, when she knew that the true transferee of the firearm was a different person who was prohibited from purchasing or possessing firearms because he was a convicted felon. As part of her plea agreement, Napier agreed to voluntarily surrender her permanent professional teaching certificate and not reapply to get her certificate back until her federal sentence, including any term of supervision, has expired. Napier faces up to five years’ imprisonment when she is sentenced on October 14, 2015.
This case was investigated by the Kanawha County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Former Top GSA Official Sentenced to Three Months Imprisonment and Three Months Home DetentionRead the Press Release
SAN FRANCISCO- Jeffrey Neely, the former Acting Regional Administrator of the U.S. General Services Administration (GSA), was sentenced to three months imprisonment, to be followed by three months of home confinement, in connection with his guilty plea for making a false claim to the United States, announced United States Attorney Melinda Haag and GSA Office of Inspector General, Special Agent in Charge David House.
From June 2003 to May 2012, Neely, 59, of Gardnerville, NV, was the Regional Commissioner for the Public Buildings Service for GSA’s Pacific Rim Region, which includes California, Arizona, Hawaii, Nevada, American Samoa, the Northern Mariana Islands, Guam, and Saipan, as well as certain properties in Japan, Korea, Singapore, and elsewhere. Between March 30, 2009, and July 31, 2011, Neely was also Acting Regional Administrator, making him the top GSA official for the region.
Neely was indicted on September 25, 2014, on three counts of making false claims under 18 U.S.C. § 287, and two counts of making false statements and using false documents, under 18 U.S.C. § 1001. He pleaded guilty to one false claim count on March 31, 2015, admitting that he submitted a false reimbursement claim for lodging expenses at M Resort Spa Casino Las Vegas that he had not incurred for official business. Neely also admitted that he submitted and caused GSA to pay additional false claims during his tenure, that he improperly failed to claim annual leave on certain dates, that these acts constitute an abuse of his position of trust with GSA, and that he obstructed justice during GSA’s investigation.
“Mr. Neely has acknowledged he violated the special trust that was placed in him as a public servant,” said U.S. Attorney Melinda Haag. “His position with the government required that he be a good steward of government funds. Instead, he has admitted he abused his position and obstructed the investigation into his wrongdoing. He is being held accountable for his decision to violate the law.”
The sentence imposed by U.S. District Judge Richard Seeborg also included payment of $8,000 in restitution, a $2,000 fine, and a two year period of supervised release. Neely is scheduled to surrender and begin serving his sentence on August 14, 2015.
Assistant U.S. Attorney Hartley M.K. West prosecuted the case with the assistance of Rosario Calderon and Trina Khadoo. The prosecution was the result of an investigation by the GSA’s Office of Inspector General.