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17 August 2015
Iowa Couple Sentenced to 40 Years for Kidnapping, Sex Trafficking, and Torturing a Young WomanRead the Press Release
RICHMOND, Va. – Aldair Hodza, 36, and Laura Sorensen, 31, of Clive, Iowa, were sentenced today for their roles in a heinous crime involving the kidnapping, forced prostitution, and torture of a young woman the couple kidnapped in Iowa.
Hodza was sentenced to 500 months (41.6 years) in prison and Sorensen was sentenced to 480 months (40 years) in prison, each to be followed by 20 years of supervised release. They were also ordered to pay restitution to the victim for her medical care, and both will be required to register as sex offenders. Hodza, who is not a United States citizen, will be subject to deportation upon completion of his sentence.
“This couple coerced and kidnapped a young woman who trusted them,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “They drugged her, physically and sexually abused her, prostituted her, and tortured her. For that, they will spend the better part of the rest of their lives in prison. The Eastern District of Virginia has always aggressively pursued sex trafficking crimes, and we will continue to do so. I would like to thank the trial team of Angela Mastandrea-Miller, Heather Hart, and Dominick Gerace, and our investigative partners for their hard work on this case.”
“This case shocks our conscience and reminds us that evil does exist in the world,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office. “There is no punishment for the perpetrators of this heinous crime which will undo the trauma suffered by their victim. I hope today’s sentencing, however, gives her some comfort that they no longer pose a threat. The quick thinking and heroic action by a trucker and the keen instinct and honed professionalism of a Virginia State Police trooper are what saved the victim in this case. The FBI thanks each of them for their vigilance and service. Success in cases like this requires citizens to be aware of their surroundings and immediately report suspicious situations to authorities.”
Hodza and Sorensen pleaded guilty to charges of sex trafficking by force, fraud, or coercion, and interstate transportation of a person for prostitution on May 1, 2015. According to court documents, the defendants admitted that on Dec. 19, 2014, they convinced the victim to join them in their recreational vehicle (RV) using a ruse. When the victim arrived, the defendants took away her phone, forced her to consume alcohol and marijuana, and sexually assaulted her. The defendants told the victim that she was no longer free to leave, and they forced her into prostitution for the next several days.
On Christmas Eve 2014, the defendants began their trip to Virginia to visit Hodza’s minor daughter, forcing the victim to accompany them. The defendants attempted to prostitute the victim along the trip at various truck stops. Upon arriving in Virginia several days later, the pair went to various campgrounds in Virginia and North Carolina, where they continued to force the victim to engage in prostitution. During this time, the defendants engaged in a pattern of torture and abuse toward the victim while Hodza’s minor daughter was present in the RV. This included “hog-tying” the victim and holding her down while they burned her on her back and abdomen with a key and scissors that had been heated on a stove; kicking her repeatedly and viciously, causing severe injuries to the victims legs, abdomen, and torso; putting cigarettes out on the victim’s back and chest; whipping the victim with a rope; driving nails into the victim’s feet; spraying bleach into the victim’s wounds; and hitting her over the head with a bottle. The defendants repeatedly told the victim that they were going to kill her.
On Jan. 6, 2015, New Kent County Sheriff’s Deputies and Virginia State Police troopers responded to a call at a gas station in Providence Forge, Virginia, after a concerned truck driver observed suspicious behavior coming from the RV. Upon arriving, the officers entered the RV and observed the victim displaying signs of fright and malnourishment. They removed her from the RV to speak with her alone, at which time the victim told the officers that she had been kidnapped and was being held against her will. The victim showed the officers some of the injuries that had been inflicted on her by Hodza and Sorensen. The victim was immediately transported to the hospital where she remained in the burn unit for more than a week. Seven months after being rescued, the victim is still being treated for her injuries.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson, who cited the depravity and severe torture inflicted by the defendants on the victim, and the long-term damage the defendants caused to the victim and Hodza’s daughter as just some of the reasons for imposing the sentences of 40 plus years.
This case was investigated by the FBI’s Richmond Field Office, the New Kent County Police Department, and Virginia State Police. Assistant U.S. Attorneys Angela Mastandrea-Miller, Heather L. Hart, and Dominick S. Gerace prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-032.
Guatemalan Man, Manolo Miguel Santos-Deleon, Sentenced for Illegal Reentry and Failure to Register as A Sex OffenderRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that Manolo Miguel Santos-Deleon, 33, of Guatemala, was sentenced to 56 months in prison by U.S. District Judge Paul L. Maloney. In May, Santos-Deleon pled guilty to illegally reentering the country following a felony conviction and failure to register as a sex offender. Santos-Deleon will be removed from the United States after the completion of his term of incarceration.
In 2012, Santos-Deleon was convicted in New York of first-degree sexual abuse, contact by forcible compulsion, which required him to register as a sex offender. Later that year, Immigration and Customs Enforcement ("ICE") removed Santos-Deleon to his native country of Guatemala. In 2014, Santos-Deleon returned to the United States illegally and travelled to Michigan. He did not register as a sex offender in Michigan or update his registration in New York, although he was required to do so by federal and state law.
Rebecca Adducci, ICE Enforcement and Removal Operations Field Office Director for Detroit, said that "ICE will continue to focus enforcement efforts on priority cases like this one. Targeted enforcement ensures the very best use of agency resources."
ICE Enforcement and Removal Operations led the investigation, with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Justin M. Presant prosecuted the case.
END
Grandview Business Owner Sentenced for $3 Million Extortion, Money Laundering SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Grandview, Mo., lawn care company was sentenced in federal court today for a $3 million extortion and money laundering scheme that began when a cocaine deal went awry.
Shelton E. Lewis, also known as “Steve Johnson” or “C,” 40, of Grandview, was sentenced by U.S. District Judge Howard F. Sachs to six years in federal prison without parole. The court also ordered Lewis to forfeit to the government a $3,050,110 money judgment (representing the proceeds obtained by Lewis from the scheme), $1,053,586 that was seized from his bank accounts and several vehicles that he purchased with proceeds from the scheme.
On March 24, 2015, Lewis pleaded guilty to extortion and money laundering.
Lewis is the owner of Green Results Landscape & Lawncare, LLC. Lewis and/or Green Results Landscape & Lawncare held three accounts at Academy Bank, a division of the Armed Forces Bank, N.A. These accounts were opened shortly after his business was formed and regularly held minimal, or as was often the case, negative balances. In August 2012, however, that changed. Lewis began depositing large cashier’s checks and business checks into these accounts. From Aug. 31, 2012, to Aug. 14, 2013, Lewis deposited a total of $3,050,110 into his accounts, with all the proceeds coming from the same company.
Lewis admitted that he made multiple threats to injure that company’s owner, RW, as part of an extortion scheme.
The extortion scheme began in July 2012 when Lewis agreed to sell approximately six ounces of cocaine for $3,000 to RW. While RW was waiting for the deal to be consummated, he was approached by the police. Lewis witnessed that police contact and did not return with the agreed-upon cocaine. Lewis told RW that, since the deal was not completed, the dealer (Lewis’s source) was assessing a $10,000 penalty. RW paid the penalty and picked up what he thought was cocaine at the drop location, but only received a bag of flour.
In August 2012, Lewis told RW that he had a plan for him to get his money back. The plan was for RW to purchase a block of cocaine and sell it, thereby recouping RW’s previously spent money. RW paid the requested money and additionally provided a Rolex watch that Lewis demanded. RW was further directed to obtain a pay-as-you go, or throw-away phone for future contact.
In the fall of 2012, Lewis told RW that he had been pulled over by the police and that the money and watch were seized. Lewis also claimed that the police had RW’s fingerprints from the watch and were going to charge RW with drug conspiracy. Lewis informed RW over the throw-away phone that he knew an attorney who could make the investigation go away, but it would require paying off the attorney and the judge assigned the case. RW paid the requested money.
Lewis told RW that the attorney would contact him in the future. When a person claiming to be an attorney contacted RW on the throw-away phone, the attorney reported that an unrelated federal investigation had developed which would require additional bribes to clear up. RW paid the additional, exorbitant sum.
RW was called, again on the throw-away phone, and told that the drug cartel knew where he lived and had left a present for him, which turned out to be a box full of Winchester .45-caliber, semi-automatic ammunition. Additionally, RW was told that if he failed to make the payments requested, he or any family member presently in his home would have their heads chopped off.
These threats were made using a throw-away phone that RW had been instructed to obtain. The phone calls were often followed by text messages describing payments that RW was expected to make in order to keep him from being charged with a crime, or to prevent violence from being inflicted upon him.
After receiving the money from his victim, Lewis repeatedly engaged in a series of financial transactions involving the proceeds of a criminal offense. For example, Lewis paid $167,000 for a 2012 Lamborghini Gallardo, $61,000 for a 2005 Bentley, $65,500 for a 2007 Aston Martin, $45,595 for a 2011 Aston Martin and $23,000 for a 2013 Chevrolet Camaro; made multiple cash withdrawals at the Bellagio Resort & Casino in Las Vegas, Nev., totaling more than $137,000; spent $27,708 to purchase jewelry, sunglasses, perfume and clothing from Gucci in Las Vegas; purchased a Rolex watch; and paid $100,000 to pay off a mortgage.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Valenti. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
Georgia Man Pleads Guilty to Federal Cocaine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Willie Collier, 65, of Macon, Ga., pleaded guilty this morning in federal court in Albuquerque, N.M., to a cocaine trafficking charge. Under the terms of the plea agreement, Collier will be sentenced to 60 months in federal prison followed by not less than four years of supervised release.
Collier was arrested on Jan. 21, 2014, at the Greyhound Bus Station in Albuquerque after a search of his baggage by DEA agents revealed that Collier was carrying approximately 5.85 kilograms of cocaine inside a backpack. Collier was subsequently charged in a superseding indictment filed on June 24, 2015 with possession of cocaine with intent to distribute on Jan. 21, 2014, in Bernalillo County.
During today’s proceedings, Collier pled guilty to the superseding indictment. He admitted to possessing approximately 4.037 kilograms of cocaine on Jan. 21, 2014, which Collier was to be paid to transport from Phoenix, Ariz., to Memphis, Tenn., to give to another individual.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
Former Terre Haute prison guard sentencedRead the Press Release
INDIANAPOLIS – Josh J. Minkler, United States Attorney, announced today that Edward B. Tunwar, 55, was sentenced to prison today by U.S. District Judge Jane E. Magnus-Stinson for his role in smuggling contraband into the United States Penitentiary in Terre Haute.
Tunwar was employed as a correctional officer at the United States Penitentiary in Terre Haute from June 2013 through December 16, 2013. During that time, Tunwar supervised the operations of the kitchen in the penitentiary. While working in the kitchen, Tunwar provided a federal inmate with multiple cellular telephones and 130 packs of tobacco. On December 9, 2013, Tunwar smuggled an ounce of heroin into the penitentiary and delivered it to another federal inmate. Prison guards at the penitentiary seized the heroin inside of the prison.
Tunwar was sentenced to 52 months= imprisonment following his guilty plea to providing contraband in prison. Tunwar was also fined $1,000 and sentenced to one year of supervised release.
The investigation into Tunwar’s illegal activity was conducted by the Federal Bureau of Investigation and the Department of Justice Office of Inspector General.
Former Teamsters Union Local President Guilty of Embezzlement of Union Funds and Criminal Recordkeeping ViolationsRead the Press Release
Jerry Thomas Vincent, Jr. was President of Teamsters Local 783 from 2006 to 2011
LOUISVILLE, KY – United States Attorney John E. Kuhn, Jr. announced the guilty plea of former Teamsters Local 783 President Jerry Thomas Vincent, Jr. to multiple charges of embezzling labor union funds and criminal recordkeeping violations, before Senior Judge Thomas B. Russell today in U.S. District Court.
Vincent, age 54, formerly of Jefferson County, Kentucky pleaded guilty to 14 counts in the July 1, 2014, grand jury indictment. According to the indictment, from October 5, 2009, through August 17, 2011, Vincent embezzled approximately $17,272.84 in union funds from Teamsters Local 783 and committed 13 criminal violations related to union records from October 5, 2009 through June 17, 2011.
Specifically, Vincent admitted to making false entries on credit card receipts and claiming false business purposes for expenditures of union funds at Louisville restaurants.
If Vincent had been convicted at trial, the maximum potential penalties were twenty-three years in prison, a $2,050,000 fine, and a three year period of supervised release.
The case is being prosecuted by Assistant United States Attorney Jason Snyder, and is being investigated by the United States Department of Labor, Office of Labor-Management Standards.
Vincent is scheduled for sentencing before Senior Judge Russell on December 10, 2015, in Louisville, Kentucky.
Former New Haven, Connecticut Resident Pleads Guilty to Crack Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Torrence Benton, 28, formerly of New Haven, Connecticut (currently serving a state prison sentence in the Maine State Prison) pleaded guilty today in U.S. District Court in Bangor to conspiracy to possess with the intent to distribute and to distribute 280 grams of a mixture or substance containing cocaine base, commonly referred to as “crack.”
According to court records, the defendant illegally distributed cocaine base in Bangor area between January 2010 and August 2013. He obtained the cocaine base from other members of the conspiracy. He sold and distributed the cocaine base in multiple half gram and gram amounts to others. The half-gram bags were sold for $50 each and the gram bags were sold for $100 each. The ultimate source for the cocaine base was in the New Haven, Connecticut area and it was transported to the Bangor area by others in the conspiracy. On April 7, 2013, the defendant was arrested by the Old Town Police Department on state charges and was subsequently found in possession of approximately ten grams of cocaine base.
The defendant faces up to twenty years in prison, a $1,000,000 fine, or both prison and a fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. He is one of eleven defendants charged in the indictment.
The case was investigated by the Maine Drug Enforcement Agency, the New Haven, Connecticut Office of the Bureau of Alcohol Tobacco Firearms and Explosives, and the New Haven Connecticut Police Department.
Former Analyst Sentenced for Child Porn on DEA ComputerRead the Press Release
KANSAS CITY, KAN. - A former analyst was sentenced Monday to 63 months in federal prison for downloading child pornography to a laptop computer assigned to the Drug Enforcement Administration, U.S. Attorney Barry Grissom said today.
Matthew Barnes, 34, Overland Park, Kan., pleaded guilty to one count of possession of child pornography. In his plea, he admitted that on March 21, 2012, a detective with the Overland Park Police was able to download child pornography over the Internet from a laptop computer assigned to Barnes.
Investigators determined that the computer was located at the Drug Enforcement Administration’s offices in Overland Park, Kan. Barnes, who was a member of the Missouri National Guard, was assigned the laptop as part of his work as an analyst with the High Intensity Drug Trafficking Area program. The National Center for Missing and Exploited Children was able to identify 19 images from nine different known series of child pornography on Barnes’ computer.
Grissom commended the Overland Park Police Department, the FBI and Assistant U.S. Attorney Scott Rask for their work on the case.
Federal Jury Convicts Serra Nissan Controller for Fraud Conspiracy at Birmingham DealershipRead the Press Release
BIRMINGHAM – A federal jury today convicted the controller at Birmingham's Serra Nissan dealership for conspiring to defraud Nissan North America through the manufacturer's sales incentive program, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, and Internal Revenue Service-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
Jurors found KIMBERLY H. BRANCH, 34, of Trussville, guilty of conspiracy following three days of testimony before U.S. District Judge Madeline H. Haikala. No sentencing date has been set, and Branch remains free on bond.
"Whether it is consumers or corporate victims, my office takes fraud very seriously and will continue to prosecute those who deceive and cheat others," Vance said.
According to court testimony, Branch and others at Serra Nissan falsified sales reports submitted by wire to the manufacturer between March 2013 and April 2013 so Serra Nissan could receive sales incentive payments it did not earn. Branch and other Serra Nissan employees falsified the reports to reflect that the Birmingham dealership sold 15 specific vehicles that, in fact, were sold at Serra Visser Nissan in Cullman. The process is sometimes called “pooling sales” and occurs when a dealer who owns or is associated with more than one dealership combines or attributes sales from one dealership to another in order to meet sales incentives levels that each dealership would not reach on its own.
Branch assisted another Serra Nissan employee in creating false files, or "jackets," on each sales transaction to hide the fraud, in the event Nissan North America audited the dealership, according to testimony. The 15 vehicle sales fraudulently reported at Serra Nissan caused Nissan North America to pay the dealership $82,750 in unearned incentives.
Branch's conviction follows a guilty plea in July from Randy D. Visser, general manager of Serra Nissan, to conspiracy to defraud Nissan North America through its dealership incentive programs. Visser, 45, of Liberty Park, admitted he directed officers at the Birmingham dealership to falsify sales reports in order to pool sales from the Cullman dealership. Visser is scheduled for sentencing Nov. 17.
Eight other Serra Nissan managers or salesmen pleaded guilty early this year in a separate conspiracy to boost loan approvals and car sales by creating and submitting falsified loan documents to lenders.
FBI and IRS-CID investigated the case, which Assistant U.S. Attorneys Amanda S. Wick and Jennifer S. Murnahan are prosecuting.
East St. Louis Man Sentenced for Drug DistributionRead the Press Release
Troy Edwards, 27, East St. Louis, Illinois, was sentenced on August 14, 2015, in federal district court to a term of 18 months in federal prison, to be followed by three years of supervised release, a fine of $150, and a special assessment of $100, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Court proceedings revealed Edwards brokered the distribution of cocaine and heroin on January 25, 2013, to a confidential informant, acting at the direction of Drug Enforcement Administration (DEA) agents, in East St. Louis, Illinois.
This case was investigated by the DEA and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
D’Hanis Man Sentenced to Federal Prison for Manufacturing Pipe BombsRead the Press Release
In San Antonio today, United States District Judge David A. Ezra sentenced 21-year-old Michael Anthony Keich of D’Hanis, TX, to 57 months in federal prison followed by three years of supervised release for manufacturing a destructive device announced United States Attorney Richard L. Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
On May 22, 2015, Keich pleaded guilty to one count of unlawful making of a destructive device. By pleading guilty, Keich admitted that he manufactured three pipe bombs. Two were seized by federal law enforcement and rendered safe. The third was discharged, but no one was injured as a result of the explosion.
The first pipe bomb was used to destroy a motorcycle in Hondo, TX, on February 27, 2014. The second was recovered by ATF agents in a Hondo motel parking lot on April 14, 2014. The third was recovered by FBI agents while executing a search warrant at a Hondo residence on May 2, 2014.
Federal authorities also recovered a suspected pipe bomb as well as materials used in the production of explosive devices when executing a search warrant at Keich’s residence on May 20, 2014. That device was later determined to be a hoax bomb.
This case resulted from an investigation conducted by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, San Antonio Police Department Bomb Squad, Uvalde County Sheriff’s Office, and the Medina County Sheriff’s Office. Assistant United States Attorney Eric Fuchs prosecuted this case on behalf of the Government.
District Court Enters Permanent Injunction against Iowa Dietary Supplement Company and its Principals to Stop Distribution of Adulterated Dietary SupplementsRead the Press Release
The U.S. District Court for the Northern District of Iowa today entered a consent decree of permanent injunction against Iowa Select Herbs LLC, of Cedar Rapids, Iowa, its president and CEO, Gordon L. Freeman, and a partial owner, Lois A. Dotterweich, to prevent the distribution of adulterated dietary supplements, announced Principal Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.
Iowa Select Herbs manufactures and distributes a variety of dietary supplements, consisting primarily of extracts from various plants, including papaya leaf, echinacea, elderberry and nettle leaf. The firm also produces a product called “Cold BeGone,” which purports to be a complex of natural ingredients. The company and its owners marketed their products online and through online marketplace websites, such as eBay Inc., Amazon.com Inc. and buy.com. They also sold their products through a retail location in Cedar Rapids.
The department filed a complaint in the Northern District of Iowa at the request of the U.S. Food and Drug Administration (FDA) alleging that the company’s dietary supplements are manufactured under conditions that are inadequate to ensure the quality of its products. The complaint also alleged that the firm’s dietary supplements qualify as unapproved and misbranded drugs in that they claim to treat or prevent a variety of diseases, including cancer, malaria and heart disease, but have never been submitted to FDA for approval, and have never been found safe and effective for those purposes.
On Aug. 13, the parties filed a consent decree of permanent injunction by which the defendants agreed to settle the litigation. The consent decree was entered by the court today and requires the defendants to cease all production and distribution of the adulterated, unapproved and misbranded products, and to recall their drugs and dietary supplements. Further, the defendants have agreed to cease the manufacture and distribution of any dietary supplement or drug and will not be allowed to resume such activities without FDA approval.
The government is represented by Trial Attorney Heide L. Herrmann of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Laura Akowuah of the Department of Health and Human Services’ Office of General Counsel-Food and Drug Division and Assistant U.S. Attorney Jacob Schunk of the Northern District of Iowa.
District Court Enters Permanent Injunction Against Iowa Dietary Supplement Company and its Principals to Stop Distribution of Adulterated Dietary SupplementsRead the Press Release
CEDAR RAPIDS, IOWA – The U.S. District Court for the Northern District of Iowa today entered a consent decree of permanent injunction against Iowa Select Herbs LLC, of Cedar Rapids, Iowa, its president and CEO, Gordon L. Freeman, and a partial owner, Lois A. Dotterweich, to prevent the distribution of adulterated dietary supplements, announced Principal Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.
Iowa Select Herbs manufactures and distributes a variety of dietary supplements, consisting primarily of extracts from various plants, including papaya leaf, echinacea, elderberry and nettle leaf. The firm also produces a product called “Cold BeGone,” which purports to be a complex of natural ingredients. The company and its owners marketed their products online and through online marketplace websites, such as eBay Inc., Amazon.com Inc. and buy.com. They also sold their products through a retail location in Cedar Rapids.
The department filed a complaint in the Northern District of Iowa at the request of the U.S. Food and Drug Administration (FDA) alleging that the company’s dietary supplements are manufactured under conditions that are inadequate to ensure the quality of its products. The complaint also alleged that the firm’s dietary supplements qualify as unapproved and misbranded drugs in that they claim to treat or prevent a variety of diseases, including cancer, malaria and heart disease, but have never been submitted to FDA for approval, and have never been found safe and effective for those purposes.
On August 13th, the parties filed a consent decree of permanent injunction by which the defendants agreed to settle the litigation. The consent decree was entered by the court today and requires the defendants to cease all production and distribution of the adulterated, unapproved and misbranded products, and to recall their drugs and dietary supplements. Further, the defendants have agreed to cease the manufacture and distribution of any dietary supplement or drug and will not be allowed to resume such activities without FDA approval.
The government is represented by Trial Attorney Heide L. Herrmann of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Laura Akowuah of the Department of Health and Human Services’ Office of General Counsel-Food and Drug Division and Assistant U.S. Attorney Jacob Schunk of the Northern District of Iowa.
Court file information at: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CV-00060.
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Criminal Defense Attorney Sentenced for Role in Insider Trading ConspiracyRead the Press Release
BOSTON – A criminal defense attorney from Lowell was sentenced today for conspiring to use inside information about the business activities of American Superconductor Corporation (AMSC) to profit from trading AMSC stock.
Douglas Parigian, 56, was sentenced by U.S. District Court Judge Denise J. Casper to eight months of home confinement and three years of supervised release. Parigian is also required to cooperate if ordered to disgorge his trading profits, pay a penalty in the related civil enforcement action brought against him by the U.S. Securities & Exchange Commission, and to comply with any order issued by state licensing authorities suspending or revoking his license to practice law.
In May 2015, Parigian pleaded guilty to insider trading and conspiracy.
Beginning around July 2009, a friend of Parigian’s, Eric McPhail, began giving Parigian and others inside information about AMSC’s business activities and upcoming earnings announcements. McPhail obtained this information during golf matches, dinners, and other social outings with a senior executive at AMSC; both men were members of the Oakley Country Club in Watertown, Mass. The AMSC executive trusted McPhail to keep the information to himself and was unaware that McPhail was instead tipping Parigian and others.
Between July 2009 and April 2011, Parigian, who knew the information was confidential and that it was improper for McPhail to disclose it, nonetheless repeatedly traded on it, making approximately $275,000 in illicit gains and avoided losses. Parigian, McPhail, and others in the group are avid amateur golfers in the Boston area.
In June 2015, McPhail was convicted after trial and is scheduled to be sentenced on Sept. 17, 2015.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case. The case is being prosecuted by Assistant U.S. Attorneys Andrew E. Lelling of Ortiz’s Economic Crimes Unit and Seth B. Kosto of Ortiz’s Cybercrime Unit.
Convicted Felon Sentenced to More Than Eight Years for Illegal Possession of A Firearm in Fort MyersRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Patrick Towns (35, Fort Myers) to eight years and four months in federal prison for possessing a firearm as a convicted felon. The Court also ordered him to forfeit the pistol and ammunition used in the offense. Towns pleaded guilty on May 6, 2015.
According to court documents, on December 26, 2014, while driving with a suspended driver’s license and an inoperable headlight, Towns was stopped by officers with the Fort Myers Police Department and placed under arrest. In connection with the arrest, the officers observed a loaded Ruger .380 caliber pistol and cocaine inside the vehicle. During a search of Towns, officers located a quantity of MDMA, also known as ecstasy or Molly, in his pocket.
During today’s sentencing hearing, Judge Chappell noted that Towns had eight prior felony convictions. As a result, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation Southwest Florida Violent Crime Task Force and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney David G. Lazarus.
Clifton, New Jersey, Ambulance Provider Charged in 17-Count Indictment with Health Care FraudRead the Press Release
Operator of Medicare Provider was Previously Barred from Medicare Participation for Prior Health Care Fraud Conviction
NEWARK, N.J. – A Passaic County, New Jersey, man was charged today with operating a lucrative ambulance company that received funds from Medicare and Medicaid, despite being barred from doing such business because of a prior health care fraud conviction, U.S. Attorney Paul J. Fishman announced.
Imadeldin Awad Khair, a/k/a “Nadr Khair,” 55, of Clifton, New Jersey, was indicted by a federal grand jury in Newark. The 17-count indictment charges Khair with one count of health care fraud, one count of obstruction of a federal audit, eleven counts of tax evasion and four counts of money laundering.
According to the documents filed in this case and statements made in court:
As a result of his 2003 conviction on a New Jersey state health care charge, Khair was excluded from participating in any capacity in Medicare, Medicaid, or other federal health care program for a minimum of 11 years. Despite this, Khair has since 2005 been an operator and a de facto owner of K & S Invalid Coach, a licensed ambulance and wheelchair transportation service operating out of Clifton. Nearly all of K & S’s patients were Medicare or Medicaid beneficiaries requiring regular transportation to dialysis treatment. Since September 2011, Medicare has paid more than $6.5 million in claims submitted by K & S. Since January 2010, N.J. Medicaid has paid more than $1 million in claims submitted by K & S. In 2014 alone, K & S received more than $2.6 million from Medicare and N.J. Medicaid and was in the top 3 percent of the more than 400 ambulance transport providers in the state of New Jersey, as measured by receipt of payments from Medicare.
Since at least 2005, Khair and others at K & S concealed his involvement in the company from Medicare and N.J. Medicaid, including his substantial control over K & S’s bank accounts and operations, including the authority to hire and terminate employees, determine employee salaries, and enforce company policies. Khair also paid several K&S employees, and nearly all of the employees’ overtime wages, “off the books” and without withholding the necessary payroll taxes. In order to carry out the tax evasion, Khair paid the “off the books” wages via cash or handwritten check and directed K&S employees to underreport to the company’s payroll company the actual number of hours worked.
In response to a U.S. Department of Labor audit of K&S in 2014, Khair held an employee meeting wherein he directed the K&S employees to falsely state to the Department of Labor that they never worked more than 80 hours in a biweekly pay period. Khair also directed K&S employees to alter and falsify K&S timekeeping records to match the false amounts previously reported to the company’s payroll vendor.
The indictment also charges money laundering arising from K&S checks that were written and endorsed by Khair and made payable to “cash” or Khair himself, which were used to pay the “off the books” wages and enrich Khair personally.
The health care count with which Khair is charged carries a maximum potential penalty of
10 years in prison. The obstruction of a federal audit and tax evasion counts each carry a maximum potential penalty of five years in prison. The money laundering counts each carry a maximum potential penalty of 20 years in prison. All the counts also carry a fine of $250,000, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of IRS-Criminal Investigation, under the direction of Jonathan D. Larsen, with the ongoing investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, and Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Fishman reorganized the health care fraud practice shortly after taking office, creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Harvey Poe Esq., Roseland, New Jersey
Download Khair Imadeldin Awad Indictment
Chula Vista Man Sent to Penalty Box for Trafficking in over $100,000 Worth of Counterfeit World Cup JerseysRead the Press Release
For Further Information: Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – August 17, 2015
SAN DIEGO – Clemente Leon of Chula Vista was sentenced to four months in custody followed by five months in a halfway house for selling counterfeit World Cup soccer jerseys valued at between $120,000 and $320,000 over the internet. Leon was also ordered by U.S. District Court Judge John A. Houston to forfeit $50,000 of the proceeds and all the counterfeit merchandise seized by federal agents.
Leon pleaded guilty in May, admitting that he sold soccer jerseys bearing counterfeit trademarks over Amazon as well as from his own website, www.playerasfutbol.com. Among other methods, he used PayPal to process the proceeds of his crime. Leon imported the counterfeit soccer jerseys from China even after receiving a Cease and Desist letter from Nike in August of 2013. This allowed him to capitalize on the popularity of the World Cup. Leon further modified the counterfeit team jerseys in his garage in Chula Vista by attaching counterfeit World Cup team patches and stencils with World Cup player’s names on the backs of the jerseys, in order to be able to charge a higher price.
DEFENDANT Criminal Case No. 15cr1326-JAH
Clemente Leon Age: 37 Chula Vista, California
SUMMARY OF CHARGE
Importation Contrary to Law—Title 18, United States Code, Section 545
Maximum penalty: 20 years’ imprisonment and $250,000 fine
AGENCY
Homeland Security Investigations
Career Drug Trafficker Tied to 170 Pounds of Cocaine and $1.5 Million in Illicit Proceeds Sentenced to 20 Years in Federal PrisonRead the Press Release
LOS ANGELES – One of the principal cocaine traffickers associated with an international narcotics ring was sentenced this morning to 20 years in federal prison after law enforcement seized more than 170 pounds of cocaine and $1.5 million in drug-tainted cash linked to his narcotics-trafficking activities.
Zaid Wakil, 43, of Winston Salem, North Carolina, was sentenced by United States District Judge George H. Wu for his drug trafficking activities in which he acquired cocaine from Los Angeles-area traffickers with the intent to distribute the narcotics on the East Coast.
In a sentencing memorandum filed with the court, federal prosecutors said that Wakil “participated in an extensive scheme to traffic in extraordinary quantities of cocaine.” They argued that Wakil “willfully pursued a criminal lifestyle” as reflected in his 20 prior criminal convictions over the course of more than two decades on charges that included drug trafficking, forgery and burglary.
Following a jury trial in February at which Wakil represented himself, he was found guilty of participating in a drug trafficking conspiracy and three counts of possessing cocaine with intent to distribute. The three narcotics-possession counts were the result of three seizures between May and July of 2011 in which more than 170 pounds of cocaine was seized. Authorities in Arizona and seized nearly 70 pounds during two traffic stops, and investigators were able to intercept a 105-pound shipment that Wakil attempted to send to the East Coast via FedEx.
The first cocaine seizure in this case came during a May 2011 traffic stop of Wakil’s car in Flagstaff, Arizona by officers with the Arizona Department of Public Safety. After he was released from custody less than two months later, Wakil contacted his Los Angeles-based supplier and stated that he was “still moving,” despite the law enforcement seizures of his drugs and money. According to wiretapped phone calls played at his trial, Wakil told his supplier at that time: “Let’s make the profits bigger.”
Wakil engaged in “sophisticated means to conceal his activities,” according to prosecutors, who noted that he operated a “shell business” in Santa Clarita – a purported trucking company that he used to conceal his cocaine shipments and to make his drug proceeds appear to be legitimate.
In 2010 and 2011, law enforcement in the San Fernando Valley, Ohio and Maryland made three seizures of cash totaling more than $1.5 million from vehicles that Wakil was driving. “[O]n each occasion, a trained narcotics detection canine gave a positive alert on the seized money,” according to the government’s sentencing brief.
Wakil was one of 22 defendants charged in June 2012 in two grand jury indictments with participating in a large-scale conspiracy to traffic cocaine. The conspiracy involved a drug-trafficking partnership between operatives in Mexico, Canada and the United States. Fourteen of the 22 defendants named in those indictments now have been convicted.
Both of the Los Angeles-based leaders of the conspiracy – Ichiro Tomatani-Guzman and Eduardo Olivares – pleaded guilty and each received 10-year prison terms. The leader of the Canadian nexus of the conspiracy – John Darrell Krokos – pleaded guilty and received a 138-month prison sentence.
Eight of the defendants charged in this case remain fugitives. They are:
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Jesus Esteban Felix Leon, 43, of Culiacan, Mexico;
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Jesus Felix Alvarez, 23, of Culiacan, Mexico;
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a man known only as “96”;
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Inocencio Aispuro-Lizarraga, 66, of Mexico;
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Rigoberto Ortega-Guzman, 60, of Downey;
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Fausto Medina, 42, of Lynwood;
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Mauricio Leon-Torres, 41, of Los Angeles; and
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Luis Cazarez-Beltran, 51, of Downey.
The investigation in this case, which was called Operation Odysseus, was conducted by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Arizona Department of Public Safety, the Pomona Police Department, the Glendale Police Department, the San Luis Obispo County Sheriff's Department, and the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (LA IMPACT).
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Bronx Man Sentenced to Prison for Conspiring to Pass Counterfeit Bills in Western PA StoresRead the Press Release
PITTSBURGH – A New York resident was sentenced today in federal court to 30 months imprisonment followed by three years supervised release, and ordered to pay $2,500.00 in restitution, on his conviction of conspiracy to possess and to pass counterfeit currency, United States Attorney David J. Hickton announced today.
United States District Court Judge Cathy Bissoon imposed sentence upon John Viloria, 26.
According to information presented to the court, Viloria conspired with codefendants Eric Seighman, Barry Robert Youger, Jr. and Cheryl Johnson, to pass thousands of dollars of counterfeit Federal Reserve notes at various retail store locations in the Western District of Pennsylvania during the period from July 1, 2014, through July 28, 2014.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation that led to the successful prosecution of Viloria.
Baltimore City Landfill Supervisor Admits to Accepting Bribes from Trash HaulersRead the Press Release
Baltimore, Maryland – William Charles Nemec, Sr., age 55, of Baltimore, pleaded guilty today to conspiracy and solicitation of bribes in connection with a scheme in which Department of Public Works (DPW) employees sought and accepted cash payments from commercial haulers in return for allowing the commercial haulers to deposit trash at the Quarantine Road Landfill without paying the required disposal fees. Nemec also admitted to participating in a scheme in which employees stole scrap metal from the Landfill for personal gain.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Scott Hinckley of the Federal Bureau of Investigation; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with the City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located farther within the Landfill. Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.
DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system. To activate the system and record a particular transaction, DPW employees must enter the tag number of the truck and a corresponding billing code. The scale house operators reweigh each truck as it leaves the Landfill. The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.
Bribery Scheme
According to his plea agreement, Nemec started working in 1984 for the DPW as a scale house cashier at the Cold Spring Lane Landfill. Back then, weight tickets were handwritten, and Nemec and other cashiers would regularly accept bribes from small and large haulers in lieu of charging disposal fees and then split the bribe money among all the cashiers. That same year, Nemec was transferred to the Quarantine Road Landfill (Landfill) where he engaged in the same type of bribery scheme. Except for short periods of time over the years since 1984, and despite the comings and goings of new scale house employees and supervisors at the Landfill, Nemec and other scale house operators continued to execute the bribery scheme until Nemec’s arrest on May 12, 2015, and even after he was promoted to a supervisory position at the Landfill in 2006.
Beginning around 2002, Nemec executed the bribery scheme in tandem with two scale house operators, including Tamara Washington. Nemec and the scale house operators accepted $100 bribe payments from large haulers for each truckload of trash dumped at the Landfill, which saved the haulers many hundreds of dollars per trip to the Landfill. Nemec and others concealed the bribery scheme by not entering a truck’s registration number into the computerized scale system, which meant the transaction was not recorded. Consequently, the transaction would not appear on the scale house’s daily logs and the commercial hauler would not be billed for using the Landfill on that particular occasion.
To maintain the pretense that the trucks had been weighed and the disposal fee paid, Nemec and others would hand the truck drivers fake or blank receipts when they crossed the outbound scale. In return, the commercial haulers either paid the $100 bribe through the outbound window at the scale house or met with Nemec or another scale house operator at an off-site location to pay a week’s worth of bribes or more. The commercial haulers always paid the $100 bribes in cash.
By paying the $100 bribes in lieu of the disposal fees, these haulers saved their businesses thousands of dollars each month, which, in turn, cost the City of Baltimore more than $6 million in revenue. For example, from July 1, 2014 through May 1, 2015 alone, Nemec, while working as a supervisor at the Landfill, accepted on his own behalf, and on behalf of other DPW employees involved in the scheme, more than $15,000 in bribe payments from a commercial hauler in return for not charging the hauler or his company the required waste disposal fees, which totaled approximately $55,000 during that period of time.
Nemec has agreed to pay restitution of $6 million.
Illegal Junking Scheme
In addition to the revenue generated by the collection of disposal fees, Baltimore City’s waste management system generates revenue by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities, including household appliances, steel cables, copper wires, car parts, computer parts, door and window frames. The City awards contracts to private salvage companies to purchase and remove such scrap metal from its trash collection facilities.
DPW employees at the Landfill and other trash collection sites are required to segregate the recyclable scrap metal from general refuse and place it in separate bins provided by the salvage companies. The companies regularly pick up the scrap metal, weigh it and send a tonnage report to the City. Based on predetermined prices per ton, the City sends an invoice to the companies requesting payment for the value of the scrap metal the companies removed during a given period of time. Salvaging by employees, also referred to as “junking,” was strictly prohibited and employees were put on notice that any salvaging of metal constituted theft of City property.
From 2005 until May 2015, Nemec and other Landfill employees falsely represented to the DPW that they were performing the jobs for which they were hired when in fact, they used their paid positions during work hours to unlawfully collect and sell scrap metal for personal gain. Employees under Nemec’s supervision paid him cash to conceal the illegal junking that occurred daily at the Landfill.
Nemec knew that laborers at the Landfill used their personal cell phones to let each other know when and where recyclable scrap metals were being dumped at the Landfill. After collecting and creating piles of the scrap metal at various locations, the laborers would transport the scrap metal using their personal pick-up trucks to a private salvage company, frequently making multiple trips during a single, eight-hour work shift. The stolen scrap metal that they sold to the private salvage company for cash resulted in a loss of revenue to the City totaling hundreds of thousands of dollars.
For the years 2011 and 2012, two laborers paid Nemec approximately $20 every day to allow them and others to collect and transport the stolen scrap metal. In addition to not reporting the daily trips to the salvage company to sell the stolen metal, which some days could take a total of 3 - 4 hours, Nemec would authorize and submit false time and attendance records to conceal the scheme, so that the laborers were able to be paid for work they did not perform while stealing the metal.
Nemec faces a maximum sentence of five years in prison for the conspiracy and 10 years in prison for bribery. U.S. District Judge Marvin J. Garbis has scheduled sentencing for November 17, 2015 at 9:30 a.m.
Former DPW employee Tamara Oliver Washington, age 55; and commercial haulers Mustafa Sharif, age 63, of Baltimore, and Adam Williams, Jr., age 52, of Randallstown, pleaded guilty in July 2015 to their participation in the bribery scheme. Washington is scheduled to be sentenced on October 20, 2015, Williams on October 21 and Sharif on November 6, 2015. Washington has agreed to pay restitution of $6 million. Sharif has agreed to forfeit and pay restitution of $500,000 and Williams has agreed to forfeit and pay restitution of $900,000.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.
16 August 2015
Attorney General Loretta E. Lynch Statement on the Passing of Civil Rights Leader Julian BondRead the Press Release
Attorney General Loretta E. Lynch released the following statement Sunday on the passing of civil rights leader Julian Bond:
“Throughout his remarkable life, Julian Bond was a leader, a trailblazer, and an icon in this country’s enduring fight for civil rights and equal justice for all people. Bond’s career reflects his extraordinary gift for turning conviction into action – from helping to establish the Student Nonviolent Coordinating Committee and the Southern Poverty Law Center to representing his community in the Georgia General Assembly; and from leading the NAACP to sharing his vision and intellect through his writing, teaching, and public commentary. I will never forget hearing Bond speak when I was a student in college, and he has remained a personal hero to me ever since. For me and for so many others, Bond’s words and deeds reached into our hearts and inspired us to take up his noble causes of equality, justice, and freedom. The legion of committed and passionate advocates he leaves behind is just one of many ways that his legacy will live on – by advancing his ongoing work, by spreading his timeless message, and by lifting up his example for all to see for generations to come.”
14 August 2015
Wheatfield Man Indicted for Making and Possessing ExplosivesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a two-count indictment charging Michael C. O’Neill, 45, of Wheatfield, N.Y., with unlawfully making a destructive device and unlawfully possessing a destructive device. The charges carry a maximum penalty of ten years and a $250,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on July 21, 2015, the Niagara County Sheriff’s Department responded to a call regarding an injury at 6761 Walmore Road in Wheatfield. When emergency crews arrived, they discovered that the defendant had a significant injury to his lower leg. Subsequently, personnel from the Erie County Bomb Squad entered the unattached garage where an explosion had occurred.
Officers noticed what appeared to be an area where explosives were being manufactured and explosive powder and BB’s in plain view. The bomb squad discovered what appeared to be seven improvised explosive devices, one was labeled “Powder w/Nails.” Other items discovered included two pill bottles labeled as flash powder, a bag of potassium perchlorate, 36 shotgun shells reloaded with fragments inside, a plastic bottle of triple seven powder, a box of triple seven pellets and a plastic bottle labeled as triple seven powder.
A subsequent x-ray exam of the device labeled “Powder w/Nails” determined that nails were packed into the device. It was disassembled and found to contain multiple nails, BB’s and suspected flash powder. A check determined that O’Neill does not have any firearms or destructive devices registered under the National Firearms Act.
The defendant will be arraigned on August 18, 2015, at 10:00 a.m. before United States Magistrate Judge Hugh B. Scott. O’Neill remains detained in the custody of the United States Marshals Service on the charges.The indictment is the result of/culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid and the Niagara County Sheriff’s Department, under the direction of Sheriff James Voutour.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Welling Man Sentenced to 108 Months, $236,000 for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that IAN ALEXANDER BOWLINE, age 29, of Welling, Oklahoma was sentenced to 108 months imprisonment, followed by 36 months of supervised release for Drug Conspiracy and Interstate Travel or Transportation in Aid of Racketeering Enterprises.
The defendant was found guilty by a federal jury in March, 2015. That jury also recommended a money judgment of $236,700.00 which represented an amount equal to the value of Oxycodone pills BOWLINE caused to be diverted by his illegal activity.
Evidence at trial proved that beginning in or about 2010, and continuing until the date of the service of a search warrant at BOWLINE’S residence on May 7, 2013, BOWLINE lead an organization aimed at obtaining Oxycodone by utilizing false prescriptions manufactured by BOWLINE and distributed to other coconspirators who, in turn, presented the false prescriptions to pharmacies and obtained 90 to 120 count Oxycodone pills at 30 mg dosages per pill. The false prescriptions generated by BOWLINE, contained DEA physician license numbers, and were printed on special watermark paper used by physicians when writing prescriptions.
The false prescriptions were presented to pharmacies in Oklahoma, Arkansas, and Missouri. The evidence presented at trial included items seized from a search of BOWLINE’S residence. Agents seized a computer, laptop, and thumb drives which contained approximately 90 blank prescriptions in a format used to produce and print the prescriptions and 50 completed prescriptions that had been illegally passed at pharmacies within and outside Oklahoma. Prosecutors also presented approximately 25 false prescriptions that had been filled by various pharmacies and identified as being manufactured and signed by BOWLINE. During the course of the trial, evidence was presented that Bowline was responsible for the diversion of approximately 28,000 Oxycodone pills.
The charges are a result of an investigation by the Oklahoma Bureau of Narcotics and was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Waterville Man Pleads Guilty to Illegally Possessing AmmunitionRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Brian Mulkern, 35, of Waterville, Maine, pled guilty today in U.S. District Court to being a felon in possession of ammunition.
According to court records, on about August 26, 2014, Mulkern was apprehended by police while in possession of 10 rounds of 9-millimeter ammunition. Mulkern was prohibited from possessing ammunition due to past felony convictions in Maine state courts for burglary, robbery, and drug distribution.
If Mulkern is found to be an Armed Career Criminal because of his past drug trafficking and violent felony convictions, he would face a mandatory minimum of 15 years and a maximum term of life in prison, a $250,000 fine and five years of supervised release.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Winthrop Police Department.
Used Car Salesman Sentenced to 24 Months in Prison and Ordered to Pay $96,599.76 in RestitutionRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of JAMES FRANCIS VOLIN, 65, of Inver Grove Heights, to 24 months in prison for hiding income from used car sales from the Internal Revenue Service for two years. VOLIN was indicted on May 21, 2014 and pleaded guilty to Income Tax Evasion on November 18, 2014. He was sentenced on August 13, 2015, before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.
“Taxpayers thinking about participating in fraudulent tax schemes, including failing to report all forms of income, should stop in their tracks and simply look at the consequences of taking the next step,” stated Special Agent in Charge Shea Jones of the IRS Criminal Investigation. “To build faith in our nation’s tax system, honest taxpayers need to be reassured that everyone is paying their fair share. Today’s sentencing of Mr. Volin shows how seriously the courts take federal tax crimes.”
According to his guilty plea and documents filed in court, in 2008 VOLIN agreed to pay nearly $100,000 in outstanding taxes to the IRS. VOLIN still owed the taxes in 2012 and 2013 when he was operating an unlicensed and illegal used car dealership which generated substantial income in cash. Instead of paying the back taxes as agreed, VOLIN hid the income. VOLIN admitted that he did not report the cash income or file tax returns and that he put money into cashier’s checks and used bank accounts opened under another’s name and social security number to avoid detection.
This case is the result of an investigation by the Internal Revenue Service – Criminal Investigations and the Minnesota State Patrol Vehicle Crimes Unit.
The case was prosecuted by Assistant United States Attorney Robert Lewis.
Defendant Information:
JAMES FRANCIS VOLIN, 65
Inver Grove Heights, MN
Convicted:
- Income Tax Evasion, 1 count
Sentenced:
- 24 months in prison
- $96,599.76 in restitution
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney's Office Closes Investigation into Grand Junction Regional AirportRead the Press Release
DENVER – United States Attorney’s Office today announced that, after a thorough investigation of allegations of criminal conduct related to the Grand Junction Regional Airport, it has decided not to seek criminal charges based on that investigation. The United States Attorney’s Office is publicly announcing the closing of this investigation due to numerous reports about the investigation.
U.S. Attorney’s Office commended the tireless and professional efforts of agents from the FBI, the Department of Transportation Office of Inspector General, and the Internal Revenue Service – Criminal Investigation, who ably performed their duty to investigate allegations of violations of federal law.
Texas Man Sentenced for Money LaunderingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Stephenville, Texas, man has been sentenced in federal court for engaging in money laundering by conducting financial transactions with funds derived from a wire fraud scheme.
Lewis Dean McBride, 65, of Stephenville, was sentenced by U.S. District Judge Howard F. Sachs on Tuesday, Aug. 11, 2015, to three years and four months in federal prison without parole. The court also ordered McBride to pay $430,000 in restitution, of which $25,000 was paid at the sentencing hearing.
McBride, a financial planner and licensed insurance agent, was the owner of Cowboy Financial, LLP in Texas. He was also co-owner with David Vorbeck in D&D Advisors, LLC, in Lee’s Summit, Mo. From 1995 until 2010, McBride’s estate planning often involved viatical and life settlement investments. Beginning in 2002, D&D Advisors served as manager for several other LLCs created by McBride for life settlement investment transactions conducted with several of McBride’s clients.
According to court documents, McBride continued to sell unregistered securities in the form of viatical settlement investments following a 2003 Missouri cease and desist order prohibiting him from these types of sales. According to court documents, McBride, with the help of Vorbeck, constructed and sold many high-risk, illegal insurance investment deals.
The specific fraud scheme related to the money laundering conviction involved three victims who entered into investment transactions in which they provided a total of $370,000, which they understood to be secured by two life insurance policies, each having a face death benefit amount of $500,000. They loaned money to McBride, with the principal to be repaid from the proceeds of the sale of the two insurance policies or the proceeds from the death benefits of the two insurance policies. However, none of the victims ever received any proceeds.
Another company formed by McBride and Vorbeck, Philley Insurance, LLC, sold one of the insurance policies that had been used to guarantee the three investments. Philley Insurance sold the policy to Milestone, an investment company, for $95,000. Philley Insurance made fraudulent claims in its contract with Milestone, which led Milestone to believe that no other entity or person had been promised proceeds of the death benefits and that no other entity or person had a security interest in the policy. However, Philley Insurance knew when it entered into the contract with Milestone that several other investment clients had been promised proceeds from the policy or security interests in the policy.
Milestone wired $95,000 to the bank account of D&D Advisors. The funds were then transferred to the accounts of other businesses owned by McBride. The client investors were never paid what they had been promised.
In a separate but related case, McBride’s company, D&D Advisors, also pleaded guilty to money laundering and has paid an additional $370,000 in restitution to the victims of the investment fraud scheme. D&D Advisors was required to surrender all governmental licenses and the firm has been dissolved.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation.
Texas Man Charged with Conspiring to Smuggle WeaponsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Eyad Farah (41, Barrington, Texas) with conspiring to export firearms without a license, exporting firearms without a license, and smuggling firearms from the United States in violation of federal export control and firearms laws. If convicted, he faces a maximum penalty of 5 years in federal prison for the conspiracy offense, up to 10 years’ imprisonment on the export charge, and up to 20 years in federal prison for the smuggling charge. The indictment was returned by the grand jury on September 4, 2014.
According to the indictment, Farah is part of a network of individuals involved in smuggling firearms from the United States to the Middle East. The indictment alleges that the firearms were concealed in vehicles that had been purchased at used car auctions in Central Florida. The vehicles were then scheduled for export to Jordan.
According to court documents, Farah was arrested at the airport in Frankfurt, Germany on June 2, 2015. He made his initial appearance before United States Magistrate Judge Julie S. Sneed earlier today.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Farah’s co-conspirator, Mahmoud Abdel-Ghani Mohammad Assaf, previously pleaded guilty to his role in the conspiracy and is currently awaiting sentencing. Yasser Ahmad Obeid, a defendant in a related case, has also pleaded guilty. In December 2014, he was sentenced to four years and three months in federal prison.
"This arrest represents a significant milestone in combating weapons smuggling by transnational criminal organizations," said Susan L. McCormick, special agent in charge of HSI Tampa. "It is through collaborative efforts with our domestic and international law enforcement partners that the United States will stem the tide of this continuing threat."
"ATF's mission is the gun,” said Regina Lombardo, Special Agent in Charge ATF-Tampa. “Whether it's domestic/international trafficking, or the gun is being used in violent crime, I will commit our resources to curb and stop illegal diversion of firearms or their use in violent gun crimes.”
John F. Khin, Special Agent in Charge, DCIS-Southeast Field Office, stated, "DCIS effectively collaborates with our partner agencies to battle against the illegal export of sensitive weapons and systems. This arrest highlights our continuing efforts."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Defense Criminal Investigative Service, with assistance from the Department of Justice’s Office of International Affairs. It will be prosecuted by Assistant United States Attorneys Josephine W. Thomas and Adam M. Saltzman.
State Employee Sentenced to 16 Months in Federal Prison for Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, announced that STEPHANIE ELLIOTT, 42, of West Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 16 months of imprisonment, followed by three years of supervised release, for tax evasion.
This matter stems from an Internal Revenue Service investigation into State of Connecticut employees and others who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns. The investigation revealed that certain state employees submitted fraudulent W-4 forms claiming numerous exemptions and had no money withheld from their wages.
According to court documents and statements made in court, ELLIOTT has been employed by the Connecticut Department of Mental Health and Addiction Services at the Connecticut Valley Hospital since 1999, first as a mental health assistant, and later as a nurse. ELLIOTT submitted a false Form W-4 to the state indicating that she had 99 exemptions and was exempt from tax withholding. As a result, no money was withheld from her wages. During the 2007 through 2012 tax years, ELLIOTT paid no federal income taxes on more than $515,000 in income she received, resulting in a federal tax loss of $73,599.
“Our government can only function when citizens comply with our tax laws,” said U.S. Attorney Daly. “Public employees, who rely on taxpayers to fund their salaries, have a special responsibility to pay their fair share of taxes. Those who deliberately choose to disregard their tax obligations may be prosecuted, ordered to pay back taxes with interest and penalties and, as this case shows, face time in prison.”
“We must not forget that the ultimate victims in tax fraud cases are the citizens of the United States – those honest taxpayers who diligently file tax returns every year,” said Special Agent in Charge William Offord, IRS Criminal Investigation. Today’s sentencing sends a clear message to would-be criminals—you will be caught and you will be punished.”
ELLIOTT was ordered to pay $105,697.22 in back taxes and interest.
On February 12, 2015, ELLIOTT pleaded guilty to one count of tax evasion.
Three other individuals, including two who worked at the Connecticut Valley Hospital, have been charged as a result of this ongoing investigation. They have pleaded guilty and await sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Susan Wines.
Springfield Police Officer Honored for Law Enforcement, Volunteer WorkRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that Officer Kevin Holle of the Springfield, Mo., Police Department has received the 2015 Enoch B. Morelock Award.
The Enoch B. Morelock Award is an annual recognition of outstanding moral character, service to law enforcement and service to the community. Holle was honored on Thursday, Aug. 13, 2015, during the 13th Annual LECC Training Seminar in Springfield. The prestigious law enforcement award, presented annually by the U.S. Attorney’s Office Law Enforcement Coordinating Committee, is named in honor of Sullivan County Sheriff Enoch B. Morelock, who was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847.
Today’s police officer must be able to do more than write tickets or answer calls. Being a police officer requires being involved in your community. That is what Holle exhibits on a daily basis. He is a well-respected member of the department and the community.
Holle has been with the Springfield Police Department for 20 years after coming from a smaller, rural department. He was named “Instructor of the Year” for Career Colleges and Schools for his excellent instruction and time spent with his students in and out of the classroom.
Holle served more than 20 years in the U.S. Army and the National Guard. He earned a bronze star, the combat infantry badge, two meritorious service medals and an Army commendation medal. Holle regularly gives of his free time by serving as a youth sponsor for seventh and eighth grade youth at his church. He recently returned from a trip to Haiti, where he delivered old uniforms from his agency to assist police and security officers who might not otherwise have uniforms. He also delivered other items to children in need, and assisted contractors in building homes and other buildings in the villages.
Enoch B. Morelock Award
Sullivan County Sheriff Enoch B. Morelock was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847, in Sullivan County. Sheriff Morelock was shot and killed during a court‑ordered sale of the accused=s property. The accused killer, Patrick McIntry, was charged with 1st Degree Murder but was later acquitted. Within a year Mr. McIntry was found shot to death on the banks of a local river.
The annual Enoch B. Morelock Award recognizes individuals with outstanding moral
character, service to law enforcement and to the community outside of law enforcement. Recipients may include officers from local police departments, sheriffs= offices, state agencies, or federal agencies as well as investigators from prosecutors= offices.
Springfield Man Sentenced for Heroin DistributionRead the Press Release
BOSTON – A Springfield man was sentenced today in U.S. District Court in Springfield for selling heroin to an undercover federal agent.
Jose Vargas, 29, was sentenced by U.S. District Court Mark G. Mastroianni to one year of probation. In March 2015, Vargas pleaded guilty to conspiracy to distribute heroin and distribution of heroin in connection with his Oct. 6, 2013 sale of $400 of heroin to an undercover agent.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Sex Offender from California Sentenced to 30 Years for Coercing a Kentucky Teenager to Send Sexually Explicit Photos of HerselfRead the Press Release
LEXINGTON - A registered sex offender from California, who previously admitted to coercing a minor from eastern Kentucky to send him sexually explicit photos of herself, has been sentenced to 30 years in federal prison.
On Thursday, Chief U.S. District Judge Karen Caldwell sentenced 38 year-old Luis Antonio Caballero for enticing a minor to engage in sexually explicit conduct for the purposes of producing a visual image of that sexual conduct. At the time of this offense, Caballero was on parole, for another crime related to the sexual exploitation of a minor in California. Due to this previous conviction, Caballero’s sentence was enhanced. Under federal law, Caballero must serve at least 85 percent of his prison sentence.
In early 2014, Caballero coerced the eastern Kentucky teenager to take and send sexually explicit photos of herself. Specifically, he used threats, which included vulgar language, to get the victim to comply with his demands. When the victim stopped sending photos and tried to end the communications, Caballero contacted the victim’s guardian and threatened to drive to Kentucky and kidnap the girl.
Caballero pleaded guilty to the charge in November 2014.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Howard S. Marshall, Special Agent in Charge, FBI, jointly announced the sentence today.
The investigation was conducted by the FBI, Louisville Field Division and FBI, San Francisco Field Division. Assistant U.S. Attorney David A. Marye prosecuted this case on behalf of the federal government.
Scruggs and Richardson Sentenced for Treasury Check FraudRead the Press Release
William Scruggs, age 46, and Paul Richardson, age 40, both of Macon, Georgia, were sentenced in the United States District Court on August 13, 2015, by the Honorable Marc T. Treadwell. Both Mr. Scruggs and Mr. Richardson had previously entered a plea of guilty to Conspiracy to Defraud the United States.
Mr. Scruggs received a sentence of 24 months in prison and Mr. Richardson received a sentence of 21 months in prison for his role in the offense. Mr. Richardson, who was on supervised release following his 2006 plea for Distribution of more than 50 Grams of Cocaine Base (crack cocaine), also had his supervised release revoked. Mr. Scruggs and Mr. Richardson must also jointly and severally pay a total of $282,561.26 in restitution.
Between July 2012 and January 2013, Mr. Scruggs received a total of 54 forged United States Treasury checks from Mr. Richardson, as well as other individuals. Mr. Richardson admitted that he brought between 12 and 15 forged Treasury checks to Mr. Scruggs. Mr. Richardson and the other individuals provided Mr. Scruggs the Treasury checks with a signed endorsement on the back of the check, which matched the name of the payee. Mr. Scruggs would then deposit the checks into the bank account for his business, Diamond Auto Painting, in Macon, Georgia. Mr. Scruggs claimed at the time of depositing that he had done work for the payee of the check, but later admitted that the checks were forged and fraudulent and that he had not met or provided services for the named payee.
Investigators were able to determine that many of the Treasury checks deposited in Mr. Scruggs’ Diamond Auto bank account were generated by tax returns which used stolen identities. There was no evidence to suggest that Mr. Scruggs and Mr. Richardson were involved in the identity theft or filing of the fraudulent tax returns.
Mr. Scruggs would retain 25% of the amount of the checks for himself. Mr. Richardson admitted that he retained 10% of the value of the checks he provided to Mr. Scruggs, and returned the remaining portion of the check to another individual. The total amount of the 54 Treasury checks was $282,561.26. Mr. Richardson admitted that the loss amount attributed to the checks he provided to Mr. Scruggs was more than $30,000, but less than $70,000.
“Today’s sentencing demonstrates IRS Special Agent’s continued commitment to pursue refund fraud,” said Veronica F. Hyman-Pillot, Special Agent in Charge IRS Criminal Investigation. “The use of the innocent taxpayer’s identities to generate a fraudulent tax refund check is a crime. IRS-Criminal is focused on bringing those who conspire to prepare, file, or negotiate fraudulent refunds proceeds to justice.”
This case was investigated by the United States Secret Service, the Internal Revenue Service- Criminal Investigations, the United States Department of the Treasury- Office of Inspector General, and the Macon Police Department. Assistant United States Attorney Beth Howard prosecuted the case for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Richard McNeal Hillman Sentenced to 188 Months on a-PVP (a.k.a. “Gravel” or “Flakka”) and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – Richard McNeal Hillman, 54, of Kingsport, Tenn., was sentenced on August 13, 2015, by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 188 months in federal prison for his leadership role in an extensive a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy centered in northeast Tennessee, southwest Virginia and western North Carolina and for being a convicted felon in possession of a firearm.
A-PVP is a synthetic drug, primarily ordered from China, which is commonly referred to on the street as “gravel” of “flakka.” Common effects on users include: extreme paranoia; hallucinations; elevated blood pressure; extremely high body temperature; excited delirium; staying awake for days; hostility and having exceptional strength without apparent fatigue. These characteristics of the drug make it very dangerous not only for the users, who have described it as “meth on steroids,” but also for law enforcement responding to individuals who are high on the substance.
According to the plea agreement on file with U.S. District Court, Hillman admitted to conspiring to distribute and being accountable for a conservative estimate of 30,000 grams (30 kilograms) of a-PVP between September 2012 and August 2014. He admitted that he was obtaining approximately one kilogram of a-PVP per week for resale from his source of supply in Hendersonville, N.C., Scott Braddock, 49, from July 2013 through March 2014. Braddock has also been convicted of a-PVP conspiracy and international money laundering charges and currently has a sentencing hearing scheduled for November 9, 2015.
Hillman stated he had been selling drugs his whole life and had been able to stay mostly under the radar of the police until now. He also admitted that he had multiple people selling a-PVP for him, including approximately 25 in Virginia alone. He proclaimed that he aspired to be the biggest gravel dealer and control the gravel trade in Southwest Virginia. In explaining how he ran his drug trafficking organization, Hillman stated, “you have to be smart, you don’t want to get the area saturated with it. You have to control the output, or the price will drop and you won’t make money. If you flood the market, you’ll step on your own foot.” Hillman estimated making over a quarter of a million dollars selling gravel, which was his only source of income during the conspiracy. Additionally, he also admitted to often carrying a firearm and accepting guns in trade for gravel.
Others who have been previously convicted and sentenced in this a-PVP trafficking conspiracy include Austin Michael Stallard, Johnny Michael Stallard, Desera Jade Allen, Phillip Wayne Mullins, Johnny White, Michael Ray Mangum and Evelyn Vickers, who were sentenced to 121 months, 180 months, 151 months, 151 months, 120 months, 120 months and 110 months in federal prison respectively.
U.S. Attorney William C. Killian stated, “We are pleased with this significant sentence on Richard Hillman, who served as one of the primary dealers of a-PVP in this region of the country. This drug began to appear in Eastern District of Tennessee as early as 2012 and we have been combating this problem ever since. It is simply one of the most dangerous and addictive drugs available anywhere. I am proud of the hard work expended by everyone involved in the investigation and prosecution of this case and this sentence will serve as an effective deterrent for others who are considering making money by selling a-PVP.”
Michael J. Stanfill, the Assistant Special Agent in Charge of the Drug Enforcement Administration in Tennessee said, “All participating agencies played a crucial role in the eradication of this criminal network. Mr. Hillman’s a-PVP trafficking activities posed a significant threat to the quality of life in northeast Tennessee, southwest Virginia and western North Carolina. The dismantling of this organization makes these communities safer today. I want to thank our federal, state and local law enforcement counterparts, who had a direct impact in making this investigation a success.”
Jack Webb, Assistant Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives, said, "This conviction illustrates ATF’s commitment to reduce violent crime by those who prey on our communities."
“Flakka and other meth-like illegal drugs are a cancer devastating countless communities that traffickers exploit without any regard for the violence and damage they leave in their wake,” said Special Agent in Charge of Homeland Security Investigations, New Orleans, Raymond R. Parmer Jr. “The ongoing partnership between HSI, ATF, DEA and local law enforcement officials to identify and bring these criminals to justice is one of our most important priorities.”
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Richard McNeal Hillman and his co-defendants include the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Sullivan County Sheriff’s Office, Kingsport Police Department, Hawkins County Sheriff’s Department, Johnson City Police Department, Greeneville, Tennessee Police Department, Hendersonville, North Carolina Police Department, and the Scott County, Virginia Sheriff’s Office, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Registered Sex Offender Indicted for Distributing Images of Child Rape via TwitterRead the Press Release
A 43-year-old registered sex offender from SeaTac, Washington was indicted today by a federal grand jury for distributing images of child rape via Twitter, announced U.S. Attorney Annette L. Hayes. DANNY ZIMMERMAN, was arrested in June 2015, after an investigation traced images of child rape to ZIMMERMAN’s twitter account and his internet protocol (IP) address. ZIMMERMAN has been in custody following his arrest on state charges. He will be arraigned on the indictment in U.S. District Court in Seattle today at 2:00 p.m.
According to records filed in King County Superior Court and in U.S. District Court, between September 2014 and February 2015, Twitter made multiple reports to the National Center for Missing & Exploited Children (NCMEC) about images of child rape uploaded to the internet. The reports resulted in a law enforcement investigation involving Western Washington’s Internet Crimes Against Children (ICAC) Task Force. The investigation revealed that the internet address involved in the distribution of the sexually explicit images was used by ZIMMERMAN. The investigation revealed that ZIMMERMAN has two 1996 convictions for child molestation in the first degree.
Due to the prior convictions, ZIMMERMAN faces a mandatory minimum 15 years in prison if convicted of Distribution of Visual Depictions of Minors Engaging in Sexually Explicit Conduct.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Internet Crimes against Children Task Force, the Kent Police Department and the King County Sheriff’s Office.
The case is being prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior Deputy King County Prosecutor specially designated to prosecute child exploitation cases in federal court.
Orlando Man Pleads Guilty to Stolen Identity Refund Fraud and Aggravated Identity TheftRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that Michael Carvalho today pleaded guilty to one count of theft of government property and one count of aggravated identity theft. He faces a maximum penalty of 10 years in federal prison for the theft of government property and a consecutive 2-year sentence for the aggravated identity theft count. Carvalho also agreed to a money judgment in the amount of $2,223,083.44, representing the amount of illicit proceeds gained from the theft, and forfeiture of the contents of three JPMorgan Chase accounts and real properties located at 2615 S. Goldenrod Road, Orlando, Florida, and 2045 Shadow Drive, Geneva, Florida.
According to the plea agreement, from approximately October 2011 through September 2013, Carvalho passed or attempted to pass more than 441 federal tax refund checks in excess of $2.9 million at six banks in the Middle District of Florida. The checks were fraudulently obtained and/or contained falsely made or forged endorsements or signatures. Along with others, Carvalho deposited these instruments on 180 different days, over a two-year period.
This case was investigated by Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney David Haas.
Oklahoma Federally Qualified Health Center Agrees to Pay $825,000 to Settle Allegations of Submitting False Medicaid Claims for Medical ServicesRead the Press Release
Oklahoma City, Oklahoma – Sanford C. Coats, United States Attorney for the Western District of Oklahoma and E. Scott Pruitt, Attorney General for the State of Oklahoma ("Oklahoma"), jointly announce that EAST CENTRAL FAMILY HEALTH CENTER has agreed to pay $825,000 to settle civil claims stemming from allegations that it violated the False Claims Act by submitting false Medicaid claims.
East Central is a designated federally qualified health center (FQHC) located in Wetumka, Oklahoma. It receives grant funds from the U.S. Health and Human Services and provides primary health services to a specific medically underserved population. East Central also provides behavioral health and dental services. As an FQHC, East Central was certified to participate in the Oklahoma Medicaid Program. For each office encounter, it was paid a flat amount under a prospective payment system rather than a fee for service as determined by the condition being treated. The FQHC rate per encounter is generally higher than the rate received by non-FQHC providers.
The United States and Oklahoma contend that East Central submitted or caused to be submitted false claims for payment to the Oklahoma Medicaid program for behavioral health services furnished to Medicaid beneficiaries during the period from January 1, 2010, through April 30, 2012. Specifically, it is alleged the false claims submitted to the Oklahoma Medicaid Program for reimbursement by East Central were for patients of non-FQHC health care providers and were not East Central patients. Medicaid paid a higher amount for these services under the FQHC payment rate when these services should have been submitted as non-FQHC claims. East Central received a share of the rate for each encounter improperly billed to the Medicaid Program to which it was not entitled.
In order to resolve the allegations brought by the United States and Oklahoma, East Central agreed to pay $825,000. As part of the settlement, East Central has also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General, which requires, among other things, additional record-keeping, reporting and compliance requirements. In reaching this settlement, East Central did not admit liability and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the Oklahoma Attorney General’s Office Medicaid Fraud Control Unit, and the Oklahoma Healthcare Authority. The case was prosecuted by Assistant United States Attorneys Ronald R. Gallegos and Scott Maule, and Oklahoma Assistant Attorney General Niki S. Batt.
Okanogan Man Sentenced to Ten Years in Federal Prison for Possession of Child Pornography ImagesRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Randy Zacherle, age 55, of Okanogan, Washington, was sentenced today after having previously been convicted by a jury on November 3, 2014 of Possession of Child Pornography. United States District Court Judge Stanley Allen Bastian sentenced Zacherle to a ten year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. In addition, Zacherle was ordered to forfeit to the United States the laptop computer he used to receive and store his child pornography collection. Zacherle will also be required to register as a sex offender.
According to information disclosed during the court proceedings, in 2009 Zacherle was convicted of Possession of Child Pornography and sentenced to 26 months and 8 days imprisonment and required to register as a sex offender. On April 29, 2013, Zacherle was arrested by Deputies from the United States Marshal’s Service and Spokane County Sheriff’s Office for failure to register as a sex offender. On October 30, 2013, Zacherle was convicted federally for failure to register as a sex offender. Further investigation by the Federal Bureau of Investigation determined that Zacherle was using a laptop computer with wiping software to receive and possess images of child pornography from 2011 until he was arrested in April of 2013. Law enforcement discovered Zacherle had collected over 1,000 images of child pornography, which included prepubescent female children under the age of twelve.
Michael C. Ormsby stated, “I commend the tireless efforts of the FBI, United States Marshal’s Service, and Spokane County Sheriff’s Office in investigating this matter. The United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. In addition, prosecuting offenders who fail to register as sex offenders is a priority of the United States Attorney’s Office.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Federal Bureau of Investigation, United States Marshal’s Service and Spokane County Sheriff’s Office. The case was prosecuted by Stephanie J. Lister and Matthew Duggan, Assistant United States Attorneys for the Eastern District of Washington.
O.C. Woman Who Allegedly Defrauding Anaheim Computer Business by Stealing Apple Products Arraigned on Federal ChargesRead the Press Release
SANTA ANA, California – An Orange County woman who worked at a family-owned computer business in Anaheim pleaded not guilty this afternoon to federal wire fraud charges that allege she sold Apple products that belonged to her employer.
Cecilia L. Litonjua-Moore, 44, of Costa Mesa, was arrested this morning by FBI agents without incident after being charged by a federal grand jury in a three-count indictment filed Wednesday.
Litonjua-Moore was arraigned this afternoon, at which time she entered a not guilty plea and was ordered to stand trial on October 6. The defendant was ordered released on a $50,000 bond.
Litonjua-Moore was an executive assistant at L.A. Computer Company, a family-owned computer store that sold Apple products, until she was dismissed in February 2014. According to the indictment, the company used a point-of-sale system that tracked its inventory, customers and invoices, among other details. Litonjua-Moore had access to this system and the authority to make adjustments to the inventory and to create invoices. She also had authority to access the owner’s computer when he was away, and to use his signature stamp for company business.
Beginning in 2011, Litonjua-Moore allegedly began stealing inventory from the company’s warehouse in order to ship products to customers she found on eBay. The indictment alleges she sold the products at 20 percent to 40 percent below what L.A. Computer paid Apple for the products. The fraud was discovered in late 2013 by the owner of the company, who determined the company’s loss to be $732,517.
To disguise the misappropriation of the Apple products, Litonjua-Moore altered L.A. Computer’s inventory list. In cases where the company did not have products in stock that were necessary for the defendant’s customers on eBay, Litonjua-Moore allegedly created false invoices to order the products and ship them to her customers. She then allegedly deleted the orders from the computer system so the company would not see any outstanding orders, according to the indictment.
The indictment alleges that the defendant used the proceeds from the fraud to fund a gambling habit and to pay for personal expenses, including shopping and meals at restaurants.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If convicted of the three counts in the indictment, Litonjua-Moore faces a statutory maximum sentence of 60 years in federal prison.
The investigation in this case was conducted by the Federal Bureau of Investigation, which received assistance from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
New Jersey Man Arrested on Attempted Arson ChargeRead the Press Release
PHILADELPHIA - Chad Dodge, 35, of Mullica Hill, NJ, was charged by Indictment, unsealed today, with attempted arson and false statement to law enforcement, announced United States Attorney Zane David Memeger and ATF Special Agent-in-Charge Essam Rabadi. Dodge was arrested this morning by agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to the indictment, on April 14, 2014, Dodge attempted to set fire to a building located at 752 South 4th Street, Philadelphia, Pennsylvania. It is further alleged that on July 8, 2015, Dodge knowingly and willfully made a materially false statement to a Special Agent of the ATF, by stating that he had never handled the timing device found at 752 South 4th Street when, in fact, he had handled the device.
If convicted of all charges, Dodge faces a mandatory minimum of five years in prison with a statutory maximum sentence of 25 years in prison, plus two years of supervised release, a fine of up to $500,000, and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Philadelphia Police Department, and the Philadelphia Fire Department. It is being prosecuted by Assistant United States Attorney V. Paige Pratter.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Iberia woman pleads guilty to stealing from a Chitimacha tribal businessRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a New Iberia woman pleaded guilty Thursday to stealing from a Chitimacha tribal business.
Rebecca Bacas, 40, of New Iberia, La., pleaded guilty before U.S. District Judge Richard T. Haik to one count of theft from an Indian tribal organization. According to the guilty plea, Bacas conducted a scheme from December 30, 2011 to January 12, 2012 to steal $1,630.50 from the Chitimacha Trading Post in Charenton, La., by cashing what appeared to be three payroll checks that turned out to be worthless. Bacas stole two checks bearing the unauthorized digital signature of the account owner and made them payable to herself in amounts that exceeded the balance of the small business account on which the checks were drawn. She also cashed a third check that also purported to be a payroll check drawn on a business account closed within two weeks because it had been overdrawn.
Bacas faces up to five years in prison, three years supervised release, a $250,000 fine and restitution. A sentencing date was not set.
Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has extended the territorial jurisdiction of the United States to major crimes committed against Native Americans that take place in Indian Country, which includes all property that the government holds in trust or use by officially recognized Native American tribes. The U.S. Attorney’s Office prosecutes all major crimes and misdemeanor cases arising in Indian Country that are within the jurisdiction of this office.
The FBI and the Chitimacha Tribal Police Department conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
Milwaukee Man Sentenced to 10 Years in Prison for Receiving Child PornographyRead the Press Release
A Milwaukee man was sentenced today to 10 years in prison for receiving more than one million images of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Gregory J. Haanstad of the Eastern District of Wisconsin.
Jeffrey Feldman, 48, of Milwaukee, pleaded guilty in April 2015 to one count of receipt of child pornography. The sentence was imposed by U.S. District Judge Lynn S. Adelman of the Eastern District of Wisconsin.
According both to admissions made in connection with his guilty plea and to information introduced at sentencing, in January 2013, FBI special agents detected Feldman sharing files containing child pornography over the Internet via a peer-2-peer network. During a subsequent search of Feldman’s residence, agents recovered numerous encrypted computers and electronic storage devices. And forensic analyses of those devices revealed that Feldman had received over one million files that included child pornography images and videos.
The case was investigated by the FBI. The case was prosecuted by Trial Attorney Jeffrey Zeeman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Karine Moreno-Taxman of the Eastern District of Wisconsin.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Maricopa County Receives More Than $950,000 in Federal Money to Promote Law Enforcement EffortsRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $952,411 in additional federal funds has been awarded to Maricopa County to fund personnel, equipment, supplies, consultants, and contractors to support probation, prosecution, enforcement, forensic, and prevention programs, with the goal of preventing and controlling crime and increasing officer safety. The grant funds are supplied by the Bureau of Justice Assistance (“BJA”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
“These funds support the basic operational needs of the county,” said U.S. Attorney John S. Leonardo. “This grant will enhance Maricopa County’s efforts to reduce crime and increase public safety. We encourage all agencies to be proactive and apply for future law enforcement grant funding through our Office of Justice Programs.”
Additional information about BJA and its programs is available at: https://www.bja.gov/Default.aspx
Information about OJP and its programs can be found at:http://www.ojp.usdoj.gov.
RELEASE NUMBER: 2015-059_MARICOPA GRANT (2015-DJ-BX-0227)
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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.
Man Sentenced for Drug TraffickingRead the Press Release
United States Attorney Deborah R. Gilg announced that on August 14, 2015, United States District Judge John M. Gerrard sentenced Adrian Montoya Carlos, 34, to 126 months imprisonment, following his conviction for conspiracy to distribute methamphetamine and 76 months imprisonment for his conviction of illegal possession of a firearm, those sentences are to be served concurrently. After his release from prison, Carlos will serve 5 years on supervised release.
In September of 2014, Adrian Montoya Carlos delivered a pound of methamphetamine to a police informant. Moments after the delivery, police arrested Carlos and searched his vehicle where they found a semi-automatic handgun with 8 rounds of ammunition.
This case was investigated by the Lincoln Police Department.
Man and Woman Charged with AttemptingRead 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 Daryl Vandermark, 44 and Judi Strong, 43, of Amherst, N.Y., appeared before Magistrate Judge H. Kenneth Schroeder, Jr. for an initial appearance on the Criminal Complaint filed August 6, 2015. The Complaint charges them with violating Title 21, United States Code, Sections 952, 960(a)(1) and 963 and Title 18, United States Code, Section 545.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that on July 30, 2015, the defendants attempted and conspired to import into the United Sates a Schedule I controlled substance, specifically Alpha-PVP, and imported merchandise contrary to law.
The criminal complaint is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Maine’s Lawsuit Challenging Termination of Riverview’s Medicare Program Participation DismissedRead the Press Release
Contact: Andrew K. Lizotte
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that yesterday U.S. District Judge John D. Levy dismissed a lawsuit brought against the federal government by the State of Maine on behalf of Riverview Psychiatric Center (“Riverview”), a psychiatric hospital operated by the Maine Department of Health and Human Services.
On October 3, 2014, Maine filed its lawsuit in U.S. District Court asking the court to review the June 4, 2013 decision by the Centers for Medicare and Medicaid Services (“CMS”) terminating Riverview’s Medicare provider agreement effective September 2, 2013. The termination was due to a number of significant deficiencies related to Riverview’s compliance with health, safety and administrative requirements. Riverview submitted three plans of correction, two of which were determined to be unacceptable by the Maine Department of Health and Human Services and CMS. However, Riverview failed to properly challenge the termination decision, even when provided with additional time, until January 3, 2014, to do so. The federal government moved to dismiss the lawsuit claiming that the State had failed to properly and timely challenge CMS’s termination decision.
Judge Levy agreed that Riverview had failed to properly and timely challenge the termination decision under the Medicare statute and regulations and that CMS had repeatedly reminded Riverview that the submission of plans of correction would not change the termination. In dismissing the lawsuit, Judge Levy concluded that the State’s arguments stretched the facts of the case, and the relevant statutory and regulatory language, beyond their limits; were “semantic only;” or were unsupported by the Medicare regulations and the administrative record. “[R]ead in their entirety,” Judge Levy concluded that Medicare’s “regulations offer no support for the proposition that a provider can avoid the effects of an unchallenged termination decision by engaging in a corrective process with CMS. Here, the State had ample opportunity to challenge the June 4 decision but failed to do so. The consequences flowing from that failure may be harsh, but they are not, in the end, surprising given the regulatory scheme set out in the regulations.”
The federal government was represented by the U.S. Attorney’s Office and the Office of General Counsel, U.S. Department of Health & Human Services.Laurel Man Sentenced for Filing False Tax ReturnsRead the Press Release
United States Attorney Deborah R. Gilg announced that on August 14, 2015, United States District Judge John M. Gerrard sentenced Robert Morris, 68 years old of Laurel, Nebraska, to one day custody, six months home confinement, 100 hours of community service, and a $40,000 fine for the offense of filing false tax returns.
Morris has already paid full restitution of $201,949.30 to the Internal Revenue Service.
Each year from 2007 through 2012 Morris underreported a total of more than one million dollars in income on his federal tax returns, resulting in avoidance of federal income taxes totaling $201,949.30. When Morris learned he was to be audited, he informed the auditor what he’d done and quickly paid his tax debt in full. The judge cited Morris’ poor health as a reason why no prison term was imposed.
“The term ‘voluntary compliance’ means that each of us is responsible for filing a tax return when required and paying the correct amount of tax,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. “That responsibility should not be taken lightly.”
The case was investigated by the Omaha office of Internal Revenue Service Criminal Investigation.
Justice Department Releases Report on Law Enforcement Requests for Information from News MediaRead the Press Release
The Justice Department today released its first annual report following former Attorney General Eric Holder’s pledge in February 2014 to make public information related to law enforcement requests for information from, or records of, members of the news media.
The report exemplifies the department’s continuing commitment to increased transparency in its interactions with the media and to ensure that newsgathering activities by members of the news media are not unreasonably impaired by law enforcement activities. The report covers authorizations made during the 2014 calendar year and includes information provided by department divisions, including the U.S. Attorneys’ Offices.
“Today’s report is an important step in the Justice Department’s ongoing efforts to promote the freedom of the press, to keep the American people informed and to improve transparency and accountability regarding media-related process,” said Attorney General Loretta E. Lynch. “In addition to the statistical data former Attorney General Holder pledged to disclose, I have asked the department to provide information about each case or matter listed so that the public can better understand how the department is striking the proper balance among several vital interests: protecting national security, ensuring public safety, promoting effective law enforcement and the fair administration of justice and safeguarding the essential role of the free press in fostering government accountability and an open society.”
A copy of the report can be found here.
Iraqi Refugee Guilty of Falsifying His Identity to Gain United States CitizenshipRead the Press Release
LOUISVILLE, Ky. – An Iraqi refugee living in Jefferson County, Kentucky was found guilty this week in U.S. District Court of falsely procuring U.S. citizenship, announced United States Attorney John E. Kuhn, Jr.
Following a two day trial, a federal jury deliberated just over one hour before finding Ali Al-Kadumi, 45, guilty of the charge. Following the verdict, defendant Al-Kadumi was denaturalized and then detained pending sentencing by Judge Greg N. Stivers, who presided over the trial.
Al-Kadumi was charged in a federal indictment on January 22, 2014. According to the indictment and his testimony in court, Al-Kadumi concealed his identity when he falsely stated his current legal name was “Hussein Naji Selman” on his 2008 Application for Naturalization. In reality, Hussein Naji Selman was and still is another person currently living in Iraq. Also, within his Application for Naturalization, Al-Kadumi stated he had never committed a crime or offense for which he had not been arrested; however, Al-Kadumi had committed a crime when he falsely used the identity and background of Hussein Naji Selman on his Legal Permanent Residency Application in 2002, which was sworn to under penalty of perjury. Finally, Al-Kadumi falsely stated on his Application for Naturalization that he had never lied to a U.S. official in order to gain entry into the United States. Al-Kadumi had actually used the same stolen identity in 1998 in order to gain entry into the United States as a refugee.
In June of 1998, Al-Kadumi applied for entrance into the United States as a refugee. He was interviewed by a U.S. immigration official in Damascus, Syria and then completed and signed his refugee application using the stolen identity. At the time, Al-Kadumi stated he had a brother living in Louisville, Kentucky, who was actually Selman’s brother. After moving to Louisville, Kentucky in 1998 as a refugee from Iraq, Al-Kadumi became a Legal Permanent Resident in 2002 and then become a naturalized U.S. citizen on June 26, 2008. After receiving his U.S. citizenship, Al-Kadumi immediately requested that his name be changed from Hussein Naji Selman, his assumed name, to Ali Sabeeh Alkadumi, his real name. The FBI discovered Al-Kadumi’s crimes during an investigation in 2013. After being interviewed by the FBI, Al-Kadumi admitted to using the stolen identity of Selman.
A sentencing date has not yet been set for Mr. Al-Kadumi. He faces a sentence of up to but no more than ten years in prison and a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Nute A. Bonner and Bryan R. Calhoun and was investigated by the Federal Bureau of Investigation (FBI).
Independence Police Detective Honored for Child Porn Investigation; FBI Agent, Forensic Accountant Honored for Elder Fraud InvestigationRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Independence, Mo., police detective, an FBI agent and a forensic accountant for the FBI have received the Guardian of Justice Award.
Independence Police Detective Allison Verman, FBI Special Agent Kacie Laidacker and FBI Forensic Accountant Brian Koechner were honored on Thursday, Aug. 13, 2015, during the 13th Annual LECC Training Seminar in Springfield, Mo.
Allison Verman
Verman was the lead detective and was instrumental in the prosecution of Morgan Littleton, 34, of Independence. Littleton was sentenced on May 19, 2015, to 60 years in federal prison without parole, which is the maximum statutory penalty after pleading guilty to two counts of using a child victim to produce child pornography.
During an investigation regarding a domestic violence assault, the victim of the assault informed police that she discovered evidence that Littleton was having a sexual relationship with her 12-year-old daughter. Police officers executed a search warrant at Littleton’s residence, where he resided with three adult women, who referred to him as “Master,” in a polygamous BDSM relationship, as well as with the victim child and another minor female.
Officers seized computers, cameras and digital media. They found 12 video segments on a memory card, some of which appeared to have been filmed in a hotel room between Jan. 18 and March 25, 2013. The videos depicted Littleton engaging in illicit sexual activity with the child victim. In a forensic interview, the child victim reported that Littleton had been molesting her once or twice a week.
Verman, who was new to investigating sex crimes, sought assistance and guidance from other detectives and forensic analysts and educated herself on aspects of this type of BDSM relationship. She tracked down reports and evidence, and spent a great deal of time preparing the case for presentation to the grand jury. She was a committed investigator and, more importantly, developed trust with the victim and her family.
Kacie Laidacker & Brian Koechner
Laidacker and Koechner not only assisted in the successful prosecution of Linda Scaife, 72, of Lenexa, Kan., for elder fraud, but were able to seize significant funds from her bank accounts to pay restitution to family members.
Shortly after Erma Giaccetti’s 84th birthday, she became the victim of Scaife’s fraud scheme. Over the next three years, Scaife isolated Giaccetti from her family, stole most of her life savings, sold her home and moved Giaccetti into a nursing home where she died at the age of 87. Before Giaccetti’s death, Scaife had her revoke her living trust and execute a new will naming Scaife as the new personal representative. Scaife obtained power of attorney and medical power of attorney over Giaccetti. Scaife forbid the nursing home from allowing any family visits. Scaife liquidated Giaccetti’s bank accounts, insurance policies, IRAs and CDs. The liquidated funds were transferred into joint bank accounts newly opened by Scaife.
At the time of her death, Giaccetti’s estate should have held $348,608 to pass on to her five grandchildren. As a result of Scaife’s fraud scheme, however, Giaccetti was never able to say goodbye to her family and was unable to leave them any inheritance.
In tracking and analyzing the money trail, Laidacker and Koechner discovered that Scaife had two bank accounts that held approximately $100,000. They also realized that the account balances were dwindling lower and lower with each passing month. They quickly focused on grabbing and preserving the money held in Scaife’s bank accounts and worked to navigate through several factual and legal hurdles to seize the money.
In April 2013, they obtained a seizure order from the court. Ten months later, in February 2014, Scaife pleaded guilty to the interstate transportation of stolen property and agreed to forfeit the funds seized by the FBI. More than $81,000 was recovered to pay the restitution owed to Giaccetti’s five grandchildren. In December 2014, Scaife was sentenced to 46 months imprisonment, which was the toughest penalty under the federal sentencing guidelines.
Giaccetti’s grandchildren are all young adults who grew up with a loving grandmother. The last years of Giaccetti’s life were filled with confusion, bitterness and frustration for the grandchildren. Having the court declare that Giaccetti was victimized by Scaife, and that the grandchildren are entitled to receive money seized from Scaife’s bank accounts as part of their inheritance, is healing for the Giaccetti family.
Guardian of Justice Award
The annual Guardian of Justice Award recognizes a state or local officer as well as a federal agent for investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance to prosecution. The prestigious law enforcement award is presented by the U.S. Attorney’s Office each year during the law enforcement training conference.