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Monday 22 June 2015
California Man Pleads Guilty in Prescription Drug Diversion SchemeRead the Press Release
WASHINGTON – A Corona, California, man pleaded guilty today in U.S. District Court in Cincinnati to one count of conspiracy to commit mail and wire fraud for his participation in a large-scale, nationwide prescription drug diversion scheme.
Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent In Charge Antoinette V. Henry of the U.S. Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) Metro Washington Field Office and Assistant Inspector in Charge Christopher White of the U.S. Postal Inspection Service (USPIS) Cincinnati Field Office announced the guilty plea, entered today by U.S. District Judge Timothy S. Black.
According to court documents, from May 2010 through December 2012, Vin Nguyen, 45, and others conspired to distribute illegally-diverted prescription drugs while concealing the true, illicit sources of the drugs. Nguyen purchased prescription drugs, including HIV medications, anti-psychotic medications and other brand name drugs, from various unlicensed and illegal sources in California and Florida. Working with co-conspirators, Nguyen then sold the drugs to other drug diverters without the statutorily required pedigree documents stating the origin of the drugs. Nguyen and his co-conspirators sold more than $6.5 million worth of diverted drugs.
“Illegal prescription drug diversion threatens the security of America’s drug supply chain,” said Principal Deputy Assistant Attorney General Mizer. “The Department of Justice will continue to protect American consumers by prosecuting those who engage in prescription drug diversion.”
From December 2011 through December 2012, Nguyen and others sold diverted prescription drugs to David Miller and his company, Minnesota Independent Cooperative (MIC). On May 6, David Miller and MIC were indicted in the Southern District of Ohio and charged with one count of conspiracy to commit mail and wire fraud, 10 counts of mail fraud and one count of conspiracy to make false statements and to distribute prescription drugs without a wholesale license. Those charges remain pending.
Nguyen and his co-conspirators used the company name “Modern Medical” when selling drugs to Miller and MIC. Modern Medical is a real California company that had no involvement in the drug sales. Nguyen and his co-conspirators simply hijacked the name to conceal their involvement and the true, illicit drug sources.
Miller and MIC, in turn, sold the prescription drugs obtained from Nguyen – and multiple other illegal sources – to wholesale and retail customers throughout the United States, including in the Southern District of Ohio. Miller and MIC are alleged to have created fraudulent pedigree documents falsely stating that they had purchased the drugs from B&Y Wholesale, a company in Puerto Rico. These false pedigrees covered up the illegitimate sources of the drugs – various illicit, unlicensed suppliers, including Nguyen – and falsely stated that B&Y Wholesale was an authorized distributor of the prescription drugs.
On Feb. 19, Yusef Yassin Gomez, the owner of B&Y Wholesale in Puerto Rico, pleaded guilty to one count of conspiracy to distribute prescription drugs without a wholesale license for his role in the conspiracy.
This matter is being investigated by FDA-OCI and the USPIS. Assistant U.S. Attorneys Anne L. Porter and Christy Muncy of the Southern District of Ohio and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch are representing the United States in this case.
Businessman Sentenced for Bakersfield Drug OperationRead the Press Release
FRESNO, Calif. — Joseph Nolan, 59, a Malibu businessman and Ventura County resident, was sentenced today to 18 months in prison, to be followed by three years of supervised release, for conspiring to manufacture, distribute, and possess with intent to distribute marijuana cultivated at a warehouse that he owned in Bakersfield, according to U.S. Attorney Benjamin B. Wagner.
According to the plea agreement and other court documents, Nolan set up a sophisticated indoor marijuana cultivation operation in a light industrial area in Bakersfield using K&N Manufacturing, his stone cutting business, as a front. Nolan used the accounts of another business, Cross Creek Building Center in Malibu, to pay the growers and cover the costs of electricity, supplies, and equipment. The Bakersfield marijuana operation supplied marijuana to the Blue Banana, a marijuana storefront and cultivation operation in Northridge that was shut down by the City of Los Angeles for failure to comply with local law. The Bakersfield marijuana operation was disrupted when law enforcement officers obtained and executed a search warrant there. During the search, officers seized 1,161 marijuana plants and 55 pounds of processed marijuana valued at over $4.8 million, along with thousands of dollars of marijuana cultivation equipment. In sentencing Nolan, Senior U.S. District Judge Anthony W. Ishii ordered the forfeiture of over 300 pieces of equipment used for the indoor cultivation of marijuana.
Nolan was the last of six defendants to be sentenced in connection with the marijuana operation. Mark Jeff Zeldes, 53, of Broomfield, Colorado, was sentenced last month to three years and eight months in prison for his involvement in the drug conspiracy. Joseph Taylor, 55, of Thousand Oaks, California, was sentenced to three years and one month in prison. Mark McGrath, 53, of Bakersfield, was sentenced to two years and two months in prison. Dustin York, 37, of Newbury, California, was sentenced to one year and 10 months in prison. Jeremy Dunn, 22, of Thousand Oaks, was sentenced to one year and three months in prison.
The case was the product of an investigation conducted by the Drug Enforcement Administration, the Bakersfield Police Department, the Kern County Sheriff’s Office, and the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) Task Force. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Bonners Ferry Man Sentenced for Violent ATM Theft in McCall and String of Prior ATM Larcenies across the U.S.Read the Press Release
BOISE — Nathan Paul Davenport, 35, formerly of Bonners Ferry, Idaho, was sentenced today to 217 months in prison for ATM larceny, conspiracy, and use of a firearm, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Davenport to serve five years of supervised release after his prison term, and pay restitution to victims, primarily the affected banks, of $1,174,928.32. The Court also ordered forfeiture of any proceeds of the crimes. Davenport’s sentence will be credited for his time in custody since his arrest. He pleaded guilty to the charges on March 30, 2015.
According to the plea agreement, on January 10, 2014, Davenport and his co-defendant, Matthew Taber Annable, aiding and abetting each other, broke into and stole cash from an automated teller machine (ATM) located at the Idaho First Bank in McCall, Idaho. They stole a Ford truck in McCall, which Davenport used to pull the door off the ATM. When Davenport was escaping with the proceeds, he twice stopped the stolen truck and fired a Ruger .223 caliber assault rifle at pursing officers of the McCall Police Department. The officers’ vehicles were hit numerous times; fortunately no one was injured. Davenport and Annable communicated over an open cell phone connection during the larceny and shootings and then met up after Davenport evaded the pursuing McCall Police officers. They moved the firearms, tools, and stolen ATM money from the stolen Ford to their own vehicle and escaped. Davenport and Annable were arrested without incident on January 12, 2014, in Orem, Utah. Davenport was carrying a bag with the proceeds of the McCall ATM larceny, approximately $27,000. The two men were in custody on related Wyoming charges prior to being transported to Boise on the Idaho charges. In the District of Wyoming, both men pleaded guilty to single counts of ATM theft and aiding and abetting and each received a fourteen month prison sentence.
The McCall shooting and larceny were the final crimes in an ATM larceny spree that stretched from October, 2012, through January, 2014, and through Florida, Texas, Colorado, Wyoming and other states. These larcenies included two committed against Idaho Banking Company in Boise and Meridian on January 5, 2014.
Annable pleaded guilty on April 20, 2015, to bank larceny by use of a dangerous weapon and conspiracy to commit bank larceny. He is scheduled to be sentenced on August 24, 2015, before Judge Lodge.
The case was investigated by the Federal Bureau of Investigation, the Idaho State Police, the Valley County Sheriff’s Office, and the McCall Police Department.
Mapquest map demonstrating the locations of ATM larcenies that Davenport admitted in his plea agreement. The ATM in McCall after Davenport ripped off the door and stole the money. Proceeds of the McCall ATM larceny found in Davenport’s possession at the time of his arrest.
Ruger .223 assault rifle used by Davenport to shoot at pursuing officers of the McCall Police Department.Arkansas Chiropractor Pleads Guilty to Federal Tax CrimeRead the Press Release
An Arkansas chiropractor pleaded guilty today in the U.S. District Court in the Western District of Arkansas to corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Conner Eldridge of the Western District of Arkansas. He was previously convicted of federal tax crimes and sentenced to prison.
According to court documents, Philip Roberts, 60, of Fort Smith, Arkansas, filed a series of false and fraudulent documents with the IRS in an effort to obstruct or impede the due administration of the internal revenue laws, including filing false financial instruments that claimed millions of dollars of transactions with both the Secretary of the Treasury and the IRS Commissioner, and filing IRS forms that falsely reported payments. In 2000, after a jury trial, Roberts was convicted of two counts of willfully failing to file federal income tax returns and sentenced to serve 16 months in federal prison.
Roberts’ sentencing hearing has not been scheduled yet before the Honorable U.S. District Judge Timothy L. Brooks of the Western District of Arkansas. Roberts faces a statutory maximum sentence of three years in prison, one year of supervised release and a $250,000 fine for obstructing and impeding the IRS.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Eldridge commended special agents of the IRS and the Treasury Inspector General for Tax Administration, who investigated the case, as well as Trial Attorneys Robert Kemins and David Zisserson of the Tax Division and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas, who are prosecuting the case.
Another member of Newman Drug Network pleads guilty to drug traffickingRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced that Mark Silverburg, also known as “Dip,” 41, of Lexington, Kentucky and Alpharetta, Georgia, was sentenced to 41 months imprisonment in federal court in Huntington. Silverburg had previously pleaded guilty in October of 2014 to conspiring with others to distribute cocaine and marijuana. Silverburg admitted that between approximately 2010 and January 20, 2014, he supplied cocaine and marijuana for Kenneth Newman, also known as “K-Kutta.” Silverburg, along with others working for him, transported cocaine from the Lexington, Kentucky area to Newman in Huntington. One of those individuals, Leroy Wilson, previously plead guilty to his role as a courier of drugs and money for Silverburg.
On January 8, 2014, Wilson transported approximately $6,800 from Newman’s residence on Artisan Avenue in Huntington to Silverburg near Lexington, Kentucky. On January 9, 2014, Silverburg instructed Wilson to travel to Huntington from Lexington to Newman’s residence. Prior to that drive, Silverburg placed a brown paper bag in the trunk of the car Wilson was driving. Once Wilson arrived at Newman’s residence, Newman took two plastic bags full of cocaine out of the brown paper bag. In a statement given to agents with the Drug Enforcement Administration, Wilson estimated the total weight of the cocaine to be between six and nine ounces.
Silverburg, Kenneth and George Newman, and seven other defendants have pled guilty to various charges stemming from the yearlong investigation by agents the DEA, Huntington Police Department, ATF, and the Metropolitan Drug Enforcement Network Team. The investigation revealed that in addition to cocaine and heroin, members of the Newman drug trafficking conspiracy were responsible for distributing oxycodone, crack cocaine, morphine, MDMA, known on the street as “Molly” or “Ecstasy,” and marijuana.
The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
***media Advisory***Read the Press Release
ALBUQUERQUE – James D. Ginger, Ph.D., the court-appointed independent monitor overseeing the reform process of the Albuquerque Police Department, will hold a press conference to introduce the members of the monitoring team and discuss the role of the Independent Monitor. Dr. Ginger will be joined by U.S. Attorney Damon P. Martinez, Albuquerque Mayor Richard M. Berry, City Councilor Trudy Jones, Albuquerque Police Chief Gorden Eden, Jr., Albuquerque City Attorney Jessica M. Hernandez and President Stephanie Lopez of the Albuquerque Police Officers’ Association. The press conference will be held TOMORROW, JUNE 23, 2015 AT 10:00 A.M. at the U.S. Attorney’s Office. No further information will be released until the press conference.
WHO: James D. Ginger, Ph.D., Court-Appointed Independent Monitor
U.S. Attorney Damon P. Martinez
Albuquerque Mayor Richard M. Berry
Albuquerque City Councilor Trudy Jones
Albuquerque Police Chief Gorden Eden, Jr.
Albuquerque City Attorney Jessica M. Hernandez
President Stephanie Lopez, Albuquerque Police Officers’ Association
WHAT: Press conference to introduce monitoring team for reform process of
Albuquerque Police Department
WHEN: TUESDAY, JUNE 23, 2015, 10:00 A.M.
WHERE: U.S. Attorney’s Office
10th Floor Multi-Media Room (Reception on 9th Floor)
201 Third Street NW
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo ID (such as driver’s license) as well as valid media credentials. Media may begin to arrive at 9:45 a.m. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
Friday 19 June 2015
Wyatt Detention Center Correctional Officer Sentenced for Accepting Payment to Deliver Contraband to an InmateRead the Press Release
PROVIDENCE, R.I. – Scott William Allen Denton, 32, of Warwick, a former correctional officer and employee at the Wyatt Detention Center in Central Falls, R.I., was sentenced in U.S. District Court in Providence on Thursday by U.S. District Court Judge John J. McConnell, Jr., to three years probation and ordered to perform 300 hours of community service for accepting $500 in cash payments to deliver contraband to an inmate.
Denton pleaded guilty on March 6, 2015, to one count of bribery by a public official. Denton has resigned from his position at the Wyatt Detention Center.
Denton’s sentence is announced by United States Attorney Peter F. Neronha and Department of Justice Office of the Inspector General Special Agent in Charge Ronald G. Gardella, New York Field Office.
At the time of his guilty plea, Denton admitted to the court that he agreed to accept $500 in cash payments from an inmate’s family to deliver pills and pornography to the inmate. Denton admitted that he delivered the contraband after the inmate’s wife made a $200 cash deposit into his bank account on March 7, 2013, and a $300 cash deposit on May 17, 2013.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The matter was investigated by the Department of Justice Office of Inspector General.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Willapa Bay Oyster Processor and Company President Plead Guilty to Violating Clean Water ActRead the Press Release
Ocean Park, Washington oyster processing company WIEGARDT BROTHERS, INC. (WBI) and company President and majority owner FREDERIC “FRITZ” WIEGARDT, pleaded guilty today in U.S. District Court in Tacoma to violating the Clean Water Act, announced U.S. Attorney Annette L. Hayes. The company admits that from at least 2012 to 2014, the company violated its permit to discharge effluent into Willapa Bay. Specifically, the company President knew that the company’s General Manager was not properly performing the required monthly effluent sampling as required by the permit. As part of its guilty plea WIEGARDT BROTHERS, INC. agreed to pay a $100,000 fine, make a $75,000 community service payment, implement an EPA approved environmental management system to insure future compliance, and publish a public apology in the Pacific Coast Shellfish Growers Association’s quarterly newsletter. As part of his plea agreement, Mr. WIEGARDT is jointly responsible for payment of the $100,000 criminal fine and must complete 75 hours of community service. Under the terms of the plea agreements, Magistrate Judge David W. Christel is not bound by the sentencing agreements and is free to impose any sentence allowed by law.
“Protection of our environment is at the heart of Clean Water Act,” said U.S. Attorney Annette L. Hayes. “Here, a company that profits from our region’s clean waters failed to take important steps to protect those very resources. These pleas, including the mandated environmental management system, will provide regulatory officials the means to monitor the company’s compliance efforts going forward.”
“America’s environmental laws protect human health by keeping our harbors, bays and waterways from becoming dumping grounds for waste materials,” said Lance Ehrig, Acting Special Agent in Charge of EPA’s criminal enforcement program in the state of Washington. “The defendants failed to take the necessary steps to verify that wastewater discharges from the production facility did not include pollutants above approved permit limits. Given this failure, it is appropriate that the company pay to improve Willapa Bay, one of the most pristine estuaries in the United States, and implement a compliance plan to help assure this type of criminal violation doesn’t happen again.”
According to the plea agreement the oyster processing company has a National Pollution Discharge Elimination System (NPDES) permit which requires monthly testing to ensure the wastewater discharged from the plant does not have harmful levels of pollutants such as fecal coliform. The water samples are to be taken from the discharge pipe with the lab analysis and data submitted to the Washington State Department of Ecology. At some point before 2012, WIEGARDT became aware that the general manager at the plant was not taking the samples from the discharge pipe because some of the equipment was not working properly. In 2012, WIEGARDT was informed by the general manager that the samples were being taken from the “bubbler,” a water and air based cleaning system. Sampling from this location is not representative of the facility’s waste stream and is not authorized by the facility’s NPDES permit. Indeed, sampling from the bubbler – the location where shucked oysters are cleaned – failed to account for the vast majority of wastewater components that were discharged from the facility during hours of operation.
After being notified about the improper sampling and reporting, WIEGARDT took no action for more than a year. On August 22, 2014 the company reported the violations of the NPDES permit to the Department of Ecology and has been working with environmental regulators on a remediation plan. Given the company’s practices, regulators were unable to assess whether the violations resulted in any environmental harm.
The case was investigated by the Environmental Protection Agency Criminal Investigation Division (EPA-CID) and is being prosecuted by Assistant United States Attorney James Oesterle and Special Assistant United States Attorney Karla Perrin.
Westerly Bank Robber Sentenced to Nearly Six Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Lawrence M. Sullivan, 36, of Pawcatuck, Conn., was sentenced in U.S. District Court in Providence on Thursday to 70 months in federal prison for robbing a branch office of the Washington Trust Company in Westerly, R.I., on September 15, 2014, announced United States Attorney Peter F. Neronha and Westerly Police Chief Edward W. St. Clair.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Sullivan to serve three years supervised release upon completion of his prison term. Sullivan pleaded guilty on March 2, 2015, to one count of bank robbery.
At the time of his guilty plea, Sullivan admitted to the court that on September 15, 2014, he approached a teller at a Washington Trust Company branch office located inside a supermarket in Westerly and demanded cash. According to the teller, Sullivan threatened to “start shooting” if his demands were not met. The teller gave Sullivan $1,049.
On September 16, 2014, acting on information provided by Westerly Police Department detectives, Groton, Conn., police located and arrested Sullivan at a motel in Groton. Sullivan was discovered hiding inside a storage closet at the motel.
According to court records, at the time of his arrest, Sullivan was serving a term of 3 years federal supervised release, having recently completed serving a 63-month federal prison sentence imposed in February 2010 for robbing two banks in Connecticut and one in Maine, in 2008 and 2009. He pleaded guilty in U.S. District Court in New Haven in December 2009 to two counts of bank robbery.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
The FBI and the Groton, Conn., Police Department assisted the Westerly Police Department in the investigation of this matter.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Violent Bloods Gang Member Sentenced to Seven Years in PrisonRead the Press Release
Woodbridge Man involved in Armed Robbery and Assault Crimes
ALEXANDRIA, Va. – Johnathan Davon Coleman, aka “Swag,” 23, of Woodbridge, Virginia, was sentenced today to 84 months in prison, followed by five of supervised release for his role in the armed robbery of an escort.
Coleman pleaded guilty on March 18, 2015, to using, carrying, and brandishing a firearm during or in relation to a crime of violence. According to court documents, Coleman, along with another Bloods gang member, robbed an escort at gun point on June 26, 2013, at a Dumfries, Virginia hotel. Coleman set up the escort for the robbery by pretending to be a client. He pushed his way into her hotel room, shoved the victim into a mirror, and ultimately robbed her while brandishing a firearm. Court records also reveal that Coleman took part in a Nov. 10, 2014, assault on a residence that involved attacking an individual who answered the door, throwing bricks through the windows of the residence, and discharging a firearm into the residence. This incident occurred in Prince William County, Virginia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police; and Stephan M. Hudson, Prince William County Chief of Police; made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
This case was investigated by the FBI’s Washington Field Office, the Fairfax County Police Department, and the Prince William County Police Department. Assistant U.S. Attorney G. Zachary Terwilliger is prosecuting the case with assistance from the Prince William County and Spotsylvania County Commonwealth Attorneys’ Offices.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-012.
United States Files Suit against Texas Subsidiary of BAE Systems Alleging False Claims under Army Contract for TrucksRead the Press Release
The United States has filed a complaint against BAE Systems Tactical Vehicle Systems LP (BAE) for knowingly overcharging the Army for materials under a military truck contract, the Justice Department announced today. BAE is a subsidiary of BAE Systems Inc., headquartered in Arlington, Virginia, which is owned by BAE Systems plc, a global defense, security and aerospace company headquartered in London. BAE is located in Sealy, Texas.
“Those who do business with the United States must act in good faith,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, the head of the Justice Department’s Civil Division. “We will ensure that contractors do not abuse the military’s procurement process at the expense of our troops abroad and the taxpayers at home.”
In 2008, the Army Tactical Command Life Cycle Management Command, in Warren, Michigan, awarded BAE a contract to build more than 20,000 trucks for the military, known as Family of Medium Tactical Vehicles (FMTVs). Government procurement law requires contractors negotiating government contracts above a threshold price, to disclose cost or pricing data relevant to the negotiations. The purpose of requiring a contractor to disclose this information is to put the government on equal footing with the contractor and ensure a fair and reasonable price. The government alleges that BAE knowingly inflated the price of the FMTV contract by concealing cost and pricing data on numerous parts and materials during contract negotiations, despite having certified that the data it had disclosed was accurate, complete and current.
“We expect government contractors to act with integrity when they fulfill their contractual obligations to the government,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “Breach of that trust results in being held accountable in court.”
“Private companies are entitled to earn an honest profit from procurement contracts with the U.S. government, but they may not knowingly overcharge the military for supplies and materials,” said U.S. Attorney Barbara McQuade of the Eastern District of Michigan. “The conduct alleged in this complaint is akin to charging $600 for a hammer.”
The government’s complaint alleges claims under the Truth-in-Negotiations Act, which requires the truthful disclosure of cost or pricing data, and the False Claims Act, which prohibits knowingly submitting false claims for federal funds.
The lawsuit is being handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Southern District of Texas and the U.S. Attorney’s Office of the Eastern District of Michigan. Investigative support is being provided by the Defense Contract Audit Agency, the Defense Criminal Investigative Service and the Army Criminal Investigation Command.
The case is captioned United States v. BAE Systems Tactical Vehicle Systems, LP (E.D. Mich.). The claims asserted in this case are allegations only; there has been no determination of liability.
US Attorney Wagner’s Remarks on the Shooting Incident in Charleston, South CarolinaRead the Press Release
SACRAMENTO, Calif. Yesterday, United States Attorney Benjamin B. Wagner sent the following remarks to various community members:
This afternoon I participated in a national conference call with other U.S. Attorneys about yesterday’s horrific shooting at the Emanuel AME Church in Charleston. The call was led by Vanita Gupta, the Acting Assistant Attorney General for the Civil Rights Division, and Bill Nettles, the U.S. Attorney in South Carolina.
As you know, a suspect is in custody. The U.S. Department of Justice has opened a federal hate crime investigation into the shooting, in addition to the murder investigation being pursued by local authorities. The FBI and ATF are working closely with local law enforcement agencies in both investigations.
There should be no doubt that this shooting was an act of domestic terrorism. Protecting Americans from the threat of terrorism of all types is the top priority of the U.S. Department of Justice. We and our federal law enforcement partners are committed to doing all we can to prevent, respond to, and prosecute such crimes.
The Attorney General [Loretta Lynch] has stated, and I agree, that there is no place for acts like these in our country or in civilized society.
U.S. Citizen Arrested for Attempting to Provide Material Support to ISIL and Other Federal OffensesRead the Press Release
Amir Said Abdul Rahman Al-Ghazi, 38, a U.S. Citizen, was arrested this morning in North Olmstead, Ohio, on charges that he attempted to provide material support to the Islamic State of Iraq and the Levant (ISIL), possessed a firearm as a convicted felon and trafficked marijuana.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Steven D. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
“According to the allegations in the complaint, Al-Ghazi attempted to provide material support to ISIL and committed other federal weapon and drug offenses,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“Today’s charges are a stark reminder that the radical and dangerous philosophies espoused by groups such as ISIL can be spread in our community through computers and social media,” said U.S. Attorney Dettelbach. “Law enforcement will remain vigilant in combating violent extremism in all its forms.”
“This arrest demonstrates law enforcement’s number one priority – to keep our communities and our nation safe,” said Special Agent in Charge Anthony. “It is clear that no area is immune from the influence of ISIL and its recruitment machine. We hope this arrest will serve as a strong message to others who may consider providing support to terrorists. The FBI and our Joint Terrorism Task Force partners are committed to identifying and stopping these individuals.”
According to the complaint, Al-Ghazi, who changed his name from Robert McCollum earlier this year, is alleged to have pledged his support to ISIL and Abu Bakr Al-Baghdadi via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIL. He also expressed his own desire to perpetrate an attack on the United States and had attempted to purchase an AK-47 assault rifle. Al-Ghazi has communicated with individuals he believed to be members of ISIL in the Middle East and took steps to create propaganda videos for ISIL.
Al-Ghazi was also charged with distributing a schedule 1 controlled substance – marijuana. From the period of February 2014 through June 2015, Al-Ghazi sold almost two kilograms of marijuana to a confidential informant. He was also charged with possessing a firearm even though he had multiple prior felony convictions. On multiple occasions Al-Ghazi expressed his interest in purchasing an AK-47, eventually purchasing one from an FBI undercover employee on June 19, 2015.
This case is being investigated by the FBI’s Cleveland Division’s Joint Terrorism Task Force. This case is being prosecuted by the U.S. Attorney’s Office of the Northern District of Ohio and the National Security Division’s Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Al-Ghazi Complaint
U.S. Attorney Barry Grissom to Speak at Mt. Zion Baptist ChurchRead the Press Release
KANSAS CITY, KAN. - U.S. Attorney Barry Grissom will speak during a prayer service Saturday in Kansas City, Kan., for the victims of the shooting in Charleston, S.C.
“Our thoughts and prayers are with the families and loved ones of the victims in Charleston,” Grissom said. “The Department of Justice has opened a hate crime investigation. We will use every tool to investigate this tragic event.”
The service will be from 9:15 a.m. to 10:15 a.m. Saturday at Mt. Zion Baptist Church, 417 Richmond Ave., in Kansas City, Kan. The Rev. C.L. Bachus will preside.
Two More Banks Reach Resolutions Under Justice Department's Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that two banks, Bank Linth LLB AG (Bank Linth) and Bank Sparhafen Zurich AG (BSZ), have reached resolutions under the department’s Swiss Bank Program.
“With each agreement signed under the Swiss Bank Program, we are learning more and more about the schemes individuals are employing to hide their assets overseas,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division. “At this point, the message should be clear. Those who use foreign jurisdictions to evade their U.S. tax obligations will be held fully accountable and pay a heavy price for their conduct.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
- Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
Bank Linth, one of the largest regional banks in Eastern Switzerland, was founded in 1848. It is headquartered in Uznach, Switzerland, which is approximately 35 miles southeast of Zurich. Bank Linth provided private banking and asset management services to U.S. taxpayers through private bankers based in Switzerland. It opened, serviced and profited from accounts for U.S. clients with the knowledge that many were likely not complying with their tax obligations.
Bank Linth’s cross-border banking business aided and assisted U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets and income they held in these accounts. Bank Linth provided this assistance to U.S. clients in a variety of ways, including the following:
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Opening and maintaining accounts in the names of sham entities;
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Providing U.S. taxpayers with numbered accounts that hid the taxpayers’ identities;
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Facilitating U.S. taxpayers’ withdrawal of cash from undeclared accounts; and
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Agreeing to hold bank statements and other mail relating to accounts rather than sending them to U.S. taxpayers in the United States.
On several occasions, Bank Linth opened accounts for U.S. taxpayers through an external asset manager, and one of these accounts was opened in the name of a sham foundation. In that instance, Bank Linth knowingly accepted and included in account records forms provided by the directors of the sham foundation that falsely represented the ownership of the assets in the account for U.S. federal income tax purposes.
In accordance with the terms of the Swiss Bank Program, Bank Linth described in detail the structure of its banking business, including its management and supervisory structure, and provided the names of management and legal and compliance officials. Bank Linth further provided detailed and specific information related to its illegal U.S. cross-border business, including the bank’s misconduct, policies that contributed to that misconduct and the names of the relationship managers overseeing the bank’s U.S.-related business. Bank Linth also obtained affidavits from bank employees regarding the bank’s conduct and related matters.
Since Aug. 1, 2008, Bank Linth held 126 U.S.-related accounts, with over $102 million in assets. Bank Linth will pay a penalty of $4.15 million.
BSZ was founded in 1850 and has its sole office in Zurich. BSZ knew that U.S. persons had a duty under U.S. law to report their income to the Internal Revenue Service (IRS) and to pay taxes on that income, including all income earned in accounts that BSZ maintained in Switzerland. Despite this knowledge, BSZ opened, maintained and serviced accounts for U.S. persons that it knew or had reason to know were likely not declared to the IRS or the U.S. Treasury, as required by U.S. law.
After Aug. 1, 2008, U.S. persons opened 32 U.S.-related accounts at BSZ, and only one of them provided a Form W-9 to BSZ upon opening an account. In most cases, the U.S. persons who opened accounts at BSZ during this period had been required to close their accounts at other Swiss banks, and BSZ knew or had reason to know that most of these accounts were likely not declared to the IRS. Moreover, 22 of the U.S.-related accounts opened during this period were funded by transfers from banks that were or are the targets of Justice Department criminal investigation.
Two relationship managers at BSZ were responsible for managing most of its U.S.-related accounts in the period since Aug. 1, 2008, and one of those managers directly reported to BSZ’s chief executive officer. BSZ relationship managers assisted U.S. persons in executing waiver forms that directed the bank not to acquire U.S. securities in their accounts. BSZ knew that the purpose and effect of these forms was to avoid disclosing the identities of the U.S. persons to the IRS.
Until 2012, BSZ provided its U.S. clients with an option for hold-mail agreements, even though it understood that providing these agreements upon request could allow U.S. persons to keep evidence of their accounts outside of the United States in order to conceal assets and income from the IRS. One U.S. client told his BSZ relationship manager by email that the hold-mail fee was “cheap insurance against having my dealings with you come to the attention of the government revenue authorities.”
BSZ also offered travel cash cards to its clients, including U.S. persons. A client could instruct BSZ to load up to 10,000 Swiss francs, U.S. dollars or euros from his or her BSZ bank account onto a travel cash card. The client could then use the card for purchases or remit unused balances back to the BSZ account. U.S. persons’ use of these cards facilitated access to or use of undeclared funds on deposit at BSZ. One BSZ relationship manager sent a brochure about travel cash cards to a U.S. client who did not wish to transfer money to the United States because of “surveillance” concerns.
In accordance with the terms of the Swiss Bank Program, BSZ described in detail the structure, operation and supervision of its U.S. cross-border business, including the names of relevant individuals and entities. It also encouraged existing and prior holders of U.S.-related accounts to disclose their accounts to the IRS through the Offshore Voluntary Disclosure Program.
Since Aug. 1, 2008, BSZ held 91 U.S.-related accounts, with over $25 million in assets. BSZ will pay a penalty of $1.81 million.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“With two more non-prosecution agreements with Bank Linth and Bank Sparhafen Zurich, the Swiss Bank Program continues to bring into compliance those U.S. taxpayers that hid behind bank secrecy laws or held undeclared offshore accounts,” said Deputy Commissioner Douglas O’Donnell of the IRS Large Business and International Division. “The program provides Swiss banks a path to resolution. These additional agreements demonstrate that efforts by the IRS and DOJ are both effective and successful.”
“The success of the Swiss Bank Program and the assistance IRS-Criminal Investigation provides is clear,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “The Swiss Bank Program is proving to be tremendously successful not only for the number of participating banks but for the multiplier effect. With the vast amount of information these banks are providing and the investigative skills of IRS-CI special agents, we now have clear roadmaps identifying accountholders and facilitators as well as the ability to track the movement of money to other accounts in other countries. For those who may still be trying to hide cash or assets offshore, your time is up.”
Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-CI and the IRS Large Business and International Division for their substantial assistance, as well as Dara B. Oliphant, Gregory E. Van Hoey, and Michael R. Pahl, who served as counsel on these matters, Senior Litigation Counsel Nanette L. Davis, and Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Bank Linth (566.31 KB)
Bank Sparhafen Zurich (439.96 KB)
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Two Defendants Plead Guilty in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Two defendants pled guilty in a stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Kiesha Adderly Mitchell, 36, and Melissa Pearl Davis, 32, both of Miami, each pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. As part of their plea agreements, each defendant agreed to restitution in the amount of $219,721.
According to court documents, in 2009, the defendants applied to the Internal Revenue Service (“IRS”) for Electronic Filing Identification Numbers (“EFINs”) in the name of corporate or fictitious entities they controlled, including K. Mitch Services, Inc. and Pebbles Tax & Notary Services. The defendants used those EFINs to submit false and fraudulent federal income tax returns to the IRS, using the names and Social Security numbers of other individuals, without the taxpayers’ authority. After the tax returns were received by the IRS, various financial institutions would authorize the defendants to load onto debit cards refund anticipation loans in the names of tax payers whose names and Social Security numbers were used to file the false and fraudulent tax returns. The defendants then withdrew the unlawfully obtained tax proceeds from the debit cards for their personal use and enrichment. The total intended loss from the defendants’ false and fraudulent filings of unauthorized income tax returns was over $400,000.
Sentencing for both defendants is scheduled for August 20, 2015 before U.S. District Court Judge Darrin P. Gayles. At sentencing, the defendants each face a maximum of ten years in prison for the conspiracy charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Californians Charged in Methamphetamine ConspiracyRead the Press Release
Two California residents were indicted by a federal grand jury on Tuesday, June 16, 2015, for methamphetamine-related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Marcos Becerra, 29, and Francisco Ramirez-Quintero, 44, both of Richmond, CA, were charged with participating in a conspiracy to distribute more than a 500 grams of methamphetamine and for possessing methamphetamine with the intent to distribute. The two face a minimum of 10 years up to a maximum of life in federal prison if convicted. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. The charges are related to a June 24, 2014, seizure of methamphetamine.
The investigation is being conducted by agents from the Drug Enforcement Administration (DEA) and the Cahokia Police Department. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Three Men Sentenced on Drug ChargesRead 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 Eric J. Humphrey, 36, of Amherst, NY, his father, John E. Humphrey, Jr., 55, of Buffalo, NY, and Anthony Taylor, 53, of Amherst, NY, who were convicted of conspiracy to possess with intent to distribute various quantities of cocaine and crack cocaine, were sentenced by U.S. District Judge Richard J. Arcara. Eric Humphrey was sentenced to 60 months in prison, John Humphrey 12 months and Anthony was sentenced to time served (22 months).Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that the defendants were arrested along with Charles M. Humphrey, Jr. and James Humphrey, Jr. in February 2010 on charges involving the possession and sale of cocaine and crack cocaine in the Buffalo area.
Items seized during the execution of search warrants executed at the time of their arrests included quantities of cocaine, crack cocaine, marijuana, supplies used in the packagaing of cocaine and crack cocaine, $153,000 in cash, ammunition and three vehicles.
The investigation resulted in the liquor license revocation of “The Good Life,” a Bailey Avenue sports bar owned by Eric Humphrey.
Charles M. Humphrey, Jr. and James Humphrey, Jr. have also been convicted and are awaiting sentencing.
The sentencings are the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. hunt, New York Field Division, the Buffalo Police Department, udner the direction of Commissioner Daniel Derenda, and the Erie County District Attorney’s Office, under the direction of District Attorney Frank A. Sedita. Additioanl assistance was provided by the Amherst Police Department and the Federal Bureau of Investigation Safe Streets Task Force.
Three Men Charged in Multi-Million Dollar Software Piracy SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man, a Maryland man and a Denver, Colo., man have been charged in federal court for their roles in one of the largest software piracy schemes ever prosecuted by the U.S. Department of Justice.
The multi-million dollar scheme, with co-conspirators in the People’s Republic of China and across the United States, illegally sold millions of dollars of Microsoft Corporation and Adobe Systems, Inc., software product key codes through a charitable organization and several online businesses. More than $18 million in assets, including luxury automobiles and expensive real estate, have been seized through federal forfeiture complaints. Those affidavits allege that conspirators reaped about $30 million in profits from customers who paid about $90 million for the pirated software.
The federal investigation, which originated in Kansas City, Mo., resulted in several criminal cases being filed within the past week.
Reza Davachi, 41, of Damascus, was charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Wednesday, June 17, 2015. The complaint, which was unsealed and made public today following Davachi’s arrest and initial court appearance, charges him with participating in a conspiracy to commit the crimes of wire fraud; unauthorized solicitation of access devices; trafficking in illicit labels, counterfeit labels and counterfeit documentation and packaging; and trafficking in counterfeit goods.
In separate but related cases, Casey Lee Ross, 28, of Kansas City, Mo., and Matthew Lockwood, 37, of Denver, each pleaded guilty to their roles in this same conspiracy on June 11, 2015.
Within an hour of his attorney being notified of Ross’s and Lockwood’s guilty pleas last week, Davachi purchased an airline ticket departing Baltimore-Washington International Airport for London (United Kingdom) Heathrow Airport. Davachi was arrested last night when he arrived at the airport to board the plane. Davachi remains in federal custody following his initial court appearance earlier today in the U.S. District Court in Baltimore, Md.
According to an affidavit filed in support of the federal criminal complaint, the investigation began when federal agents in Kansas City, Mo., learned in 2013 that Ross had purchased (and redistributed) tens of thousands of illegitimate and unauthorized Microsoft product key codes and counterfeit product key cards from suspect sources in China. Microsoft product key codes are used to obtain full access to unlocked, licensed versions of various Microsoft copyrighted software programs.
Ross admitted that he purchased approximately 30,159 product key codes and counterfeit product key cards. Ross purchased these product key codes at prices well below that of the estimated retail price. In many cases, the affidavit says, they were distributed on counterfeit card stock intended to make it appear as if they were genuine Microsoft products.
Ross (doing business as Software Slashers) distributed large quantities of these product key codes and counterfeit Microsoft product key cards to Davachi and other co-conspirators in the United States, the affidavit says, who in turn sold the product key codes and counterfeit product key cards through their respective Web sites as well as on e-commerce sites such as eBay or Amazon.
Davachi allegedly obtained these products through various sources, including Ross and known counterfeiters in the China. Davachi allegedly sent numerous wire transfers totaling approximately $672,300 to this suspect source of supply in China. The affidavit details communication between Davachi and these known counterfeiters in China where the design and manufacture of these counterfeit product key cares is discussed.
Davachi, in turn, allegedly supplied other individuals with these counterfeit, illicit and/or unauthorized software products. The affidavit alleges that Davachi received millions of dollars in revenue through these illicit sales.
According to the affidavit, Davachi used a charitable organization called The Sixth Man Foundation, doing business as Project Contact Africa (an eBay charity store) and several businesses (including Rez Candles, Inc., digitaldeliverydownloads.com and checkus1st.com) to sell unauthorized product key codes and counterfeit software product key cards at prices that ranged from a third to a half of the manufacturer’s suggested retail price or estimated retail price.
Davachi allegedly sold millions of dollars of unauthorized product key codes and counterfeit software product key cards through the eBay charity store for Project Contact Africa, a formally registered 501(c)(3) charitable organization. The primary exempt purpose for this charity, according to publicly-available tax filings, is “to support a medical clinic in Africa for needy families and children.” The 501(c)(3) organization relates back to a charity originally formed in the state of Oregon to provide “money, goods, or services to the poor,” and to “provide aid to the Portland (community) Trailblazer fans.”
Davachi allegedly sold thousands of Microsoft products through his Project Contact Africa eBay charity store, which claimed that proceeds from software sales went “100% to charity.” Since its creation in 2004, the affidavit says, the Project Contact Africa eBay charity account has received in excess of $10.4 million in payments and deposits. Publicly-available tax filings filed on behalf of the charity claim a total of $865,972 in contributions over this same period of time.
Microsoft fraud investigators advised federal agents that they were aware of dozens of infringement reports related to Davachi and Rez Candles and that they had sent numerous cease and desist letters. In August of 2010 another software developer, Adobe, sued Davachi and Project Contact Africa for willful copyright and trademark infringement.
According to the affidavit, Davachi engaged in at least 15 transactions with Lockwood (doing business as Discount Mountain, Inc.) for these suspected counterfeit, illicit, and/or unauthorized software and software components, from March 25, 2013, to Feb. 15, 2014, totaling $1,243,570.
In addition to his purchases from Davachi, Lockwood admitted that he paid Ross $1,127,190 for unauthorized product key codes and counterfeit product key cards. Lockwood also admitted that he paid $1,574,054 to unidentified persons in the state of Washington for various software items. Lockwood admitted that he obtained approximately 6,165 certificates of authenticity, 4,996 “Lenovo” product key cards and approximately 11,000 unauthorized product key codes.
Federal agents executed search warrants at Davachi’s residence and principal place of business on Dec. 10, 2014. Agents seized approximately $72,391 in cash, 2,716 mint coins, 665 Canadian mint coins, 164 silver pieces and a 2013 Tesla Model S valued at approximately $71,640. Contraband and counterfeit evidence included thousands of items of counterfeit, illicit, and unauthorized software and software components. There were in excess of 5,000 standalone certificates of authenticity recovered at Davachi’s business and personal residence that were not affixed to, enclosed with, or accompanying their associated copies of the copyrighted Microsoft computer programs.
Dickinson cautioned that the charge contained in the complaint against Davachi is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Patrick D. Daly; Assistant U.S. Attorney J. Curt Bohling is responsible for the civil proceedings. They were investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Tennessee State Representative Joe Armstrong Indicted for Conspiracy to Defraud the United States, Tax Evasion, and Filing A False Tax ReturnRead the Press Release
KNOXVILLE, Tenn. – On June 16, 2015, a federal grand jury returned a three-count indictment against Tennessee State Representative Joe Armstrong charging him with conspiracy to defraud the United States, tax evasion and filing a false federal income tax return.
Armstrong appeared in U.S. District Court on June 19, 2015, and pleaded not guilty to the charges. A trial has been set for 9:00 a.m., on August 25, 2015, before the Honorable Thomas A. Varlan, Chief U.S. District Court Judge.
The indictment, which is on file with the U.S. District Court, alleges that Armstrong utilized his position as a legislator to profit from the sale of Tennessee cigarette tax stamps and avoid the payment of federal income taxes.
Agencies involved in this investigation include the Internal Revenue Service, Criminal Investigation Division and the Federal Bureau of Investigation. Assistant U.S. Attorney Charles E. Atchley, Jr., represented the United States.
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Tax Fraudster Receives 27-Year Prison SentenceRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Honeywell has sentenced James Lee Cobb, III (37, Tampa) to 27 years in federal prison, followed by 5 years of supervised release, for conspiracy to commit mail and wire fraud, wire fraud, aggravated identity theft, and for being a felon in possession of a firearm as an armed career criminal. As part of his sentence, the Court also entered a forfeiture money judgment in the amount of $1,820,759, and an order of restitution in the same amount. Cobb pleaded guilty on December 1, 2014.
According to court documents, Cobb conspired with others to use more than 7,000 stolen names, dates of birth, and Social Security numbers to file false tax returns and open pre-paid debit cards. He also obtained “burner” phones using stolen identities. From an unknown date in 2011, and continuing November 2013, Cobb and his co-conspirators filed false tax returns claiming approximately $3 million in refunds.
During the execution of a search warrant at Cobb’s residence, law enforcement officers recovered lists and medical records containing the personal identifying information of more than 7,000 victims. Many of the victims had their identities stolen from healthcare facilities, including from the James A. Haley VA hospital; the Florida Hospital (formerly known as University Community Hospital); ambulance services in Virginia, Georgia, and Texas; a local medical billing company; and court records. In addition, a number of deceased victims’ names were obtained from genealogy websites.
Officers also found two guns in the residence – a loaded handgun and an AR-15-style rifle with a fully-loaded, 30-round magazine. At the time of this offense, Cobb was on supervised release from a prior federal conviction.
This case was investigated by the Tampa Police Department, the Internal Revenue Service - Criminal Investigation, the U.S. Department of Veterans Affairs - Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the members of the Tampa Bay Identity Theft Alliance, including the Hillsborough County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Thomas N. Palermo and U.S Department of Justice Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
St. Louis Resident Charged for Selling CrackRead the Press Release
A St. Louis, Missouri, man was indicted by a federal grand jury on Tuesday, June 16, 2015, for distribution of a controlled substance, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Eric J. Simpson was charged with one count of selling crack cocaine on March 12, 2015. Simpson faces up to a maximum of 20 years in federal prison if convicted. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing.
The investigation is being conducted by agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATF). The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Roy Resident Pleads Guilty to Robbery, Firearms Violation; Plea Agreement Includes 180-Month Prison SentenceRead the Press Release
SALT LAKE CITY – Justin Andrew Adams, age 32, of Roy, charged in a federal indictment returned in November 2014 with three Weber County robberies and three firearms violations, pleaded guilty in U.S. District Court Friday morning to one robbery and one firearms violation.
Adams admitted that he committed an Oct. 30, 2014, robbery of a Walmart located at 4848 South 900 West in Riverdale. He admitted he threatened to shoot the cashier during the robbery. He also admitted that on the same day, he was in possession of an unregistered short-barrel rifle.
The plea agreement executed Friday morning includes a recommended sentence of 180 months in federal prison to be followed by 36 months of supervised release. Adams is scheduled to be sentenced Sept. 8, 2015, at 2:30 p.m. by U.S. District Judge Robert J. Shelby.
In addition to the Walmart robbery in Riverdale, Adams was also charged with an Oct. 24, 2014, robbery of the Walgreens Pharmacy located at 1208 Washington Boulevard in Ogden and an Oct. 26, 2014, robbery of a Walmart located at 1710 East Skyline Drive in South Ogden. He also was charged with using a firearm during a crime of violence and possession of a firearm by a restricted person. Although these charges will be dismissed at sentencing, the plea agreement includes a stipulated agreement that this relevant conduct can be considered as a part of the facts the Court takes into consideration in sentencing Adams.
Adams was arrested by police officers responding to the Riverdale Walmart robbery.
The case is being prosecuted by the U.S. Attorney’s Office in Utah. The FBI, the ATF, the Weber County Sheriff’s Office and police departments in Ogden, South Ogden, and Riverdale contributed to the investigation.
Rockford Man Sentenced to 12 Months in Federal Prison for Fraud Involving More Than $500,000 in Fictitious Money OrdersRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced today by U.S. District Judge Philip G. Reinhard for producing a fictitious financial instrument that appeared to be issued under the authority of the U.S. Treasury. BRADLEY SHERMAN HAMPTON, 55, was sentenced to 12 months and one day in federal prison, to be followed by 3 years supervised release, and ordered to pay restitution of $76,500.
Hampton, who pled guilty on Feb. 5, 2015, admitted that on Aug. 31, 2009, he created a fictitious $48,780 money order in an attempt to defraud Regions Bank and the U.S. Treasury. According to the written plea agreement, Hampton also admitted that in 2009 he produced eight other fictitious money orders in an attempt to defraud. The nine fictitious money orders totaled $547,578.47 and purported to be issued under the authority of a Federal Reserve Bank, the Department of the Treasury, or the United States Treasury. The fictitious money orders were made payable to Chase Home Finance, Chase National Payment Service, Holcomb State Bank, Regency Worldwide Development, Inc., Harley Davidson Credit, and the Faith Center in Rockford, Ill. The $76,500 restitution is owed to the sole money order recipient that accepted a money order and disbursed money.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Frank Benedetto, Special Agent-in-Charge of the Secret Service’s Chicago Field Office.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Prosthetic Device Company Pleads Guilty to Health Care FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Suncoast Brace & Limb, Inc. (“SCBL”), based in Bradenton, today pleaded guilty to health care fraud. The corporation faces a maximum fine of $500,000 and the payment of restitution at the time of sentencing. A sentencing date has not yet been set.
According to the plea agreement, between July 2009 and March 2012, SCBL engaged in a scheme to defraud the U.S. Department of Health & Human Services through a pattern of submitting fraudulent claims for prosthetic devices that had allegedly been provided to patients. In reality, SCBL often submitted reimbursement claims to Medicare and Medicaid for prosthetic devices that were either unnecessary or duplicative, or that were not at all compatible with the needs of the particular patient. As a consequence of these actions, SCBL received reimbursement from Medicaid and Medicare in the amount of approximately $1,493,368. Under the terms of the plea agreement, SCBL will pay restitution to the Department of Health and Human Services. In addition, SCBL and its principal owner will be excluded from participation in federal health care programs for a substantial period of time.
This case was investigated by the U.S. Department of Health & Human Services-Office of Inspector General, the Federal Bureau of Investigation, and the Florida Office of the Attorney General - Medicaid Fraud Control Unit. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Oregon Resident Sentenced to 87 Months in Prison in Connection with 2009 Suicide Bombing of ISI Headquarters in PakistanRead the Press Release
Reaz Qadir Khan, 51, a naturalized U.S. Citizen living in Portland, Oregon, was sentenced today to 87 months in prison by U.S. District Court Judge Michael W. Mosman of the District of Oregon in connection with the May 27, 2009, suicide bomb attack at Pakistan’s intelligence service (ISI) headquarters in Lahore, Pakistan. The attack killed approximately 30 people and injured some 300 more.
Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Billy J. Williams of the District of Oregon and Special Agent in Charge Greg Bretzing of the FBI’s Portland Division made the announcement.
Khan previously entered a guilty plea admitting that he acted as an accessory after the fact to the crime of providing material support to terrorists. In entering his plea, Khan admitted arranging for the delivery of approximately $2,450 to Maldivian Ali Jaleel, one of the suicide bombers responsible for the May 27, 2009, attack. Khan also admitted to providing advice and financial assistance to Jaleel’s wives after the bombing, while knowing that providing such assistance would hinder and prevent the apprehension of Jaleel’s wives and others who may have helped in the attack. The 87-month sentence was jointly recommended by the parties and concludes a lengthy investigation of Khan’s connection to the attack.
“With today's sentence, the court held the defendant accountable and made it clear that no community should be subjected to the dangers posed by those seeking to assist violent extremists whether here or abroad,” said Acting U.S. Attorney Williams. “Today's result would not have been possible without the hard work of the dedicated professionals in the law enforcement and intelligence communities. I look forward to our continued work with Muslim communities in Oregon who are committed to ensuring that all people are safe from the threat of violent extremism.”
“The threads of violent extremism are weaving a path through many American cities,” said Special Agent in Charge Bretzing. “As in the Khan case, sometimes that path leads to those who are willing to fund activities overseas. In other instances, the path leads to homegrown extremists who are willing to commit heinous acts or to those who inspire them to do so. As the threat becomes more insidious and difficult to track, we rely on our shared community to come forward to help us identify and isolate those who would do harm to our nation. I would ask anyone with information about potential threats to call their local FBI office.”
This case was investigated by the FBI’s Joint Terrorism Task Force. The prosecution was handled by Assistant U.S. Attorneys Ethan D. Knight and Charles F. Gorder Jr. of the U.S. Attorney’s Office in the District of Oregon. Trial Attorney David P. Cora from the Counterterrorism Section of the Depart of Justice’s National Security Division assisted.
Oregon Resident Sentenced to 87 Months in Prison in Connection with 2009 Suicide Bombing of ISI Headquarters in Lahore, PakistanRead the Press Release
PORTLAND, Ore, – Reaz Qadir Khan, 51, a naturalized U.S. Citizen residing in Portland, Oregon, was sentenced today to 87 months in prison by U.S. District Judge Michael Mosman in connection with the May 27, 2009 suicide bomb attack at Pakistan’s intelligence service headquarters in Lahore, Pakistan. The attack killed approximately 30 people and injured some 300 more.
Khan had previously entered a plea to the crime of accessory after the fact to the crime of providing material support to terrorists. In entering his plea, Khan admitted arranging for the delivery of approximately $2,450 to Maldivian Ali Jaleel, one of the suicide bombers responsible for the May 27, 2009 attack. Khan also admitted to providing advice and financial assistance to Jaleel’s wives after the bombing, while knowing that providing such assistance would hinder and prevent the apprehension of Jaleel’s wives and others who may have helped Jaleel.
The 87 month sentence was jointly recommended by the parties and concludes a lengthy investigation of Khan’s connection to the attack. “With today’s sentence, the Court held the defendant accountable and made it clear that no community should be subjected to the dangers posed by those seeking to assist violent extremists whether here or abroad,” said Acting U.S. Attorney Billy J. Williams. “Today’s result would not have been possible without the hard work of the dedicated professionals in the law enforcement and intelligence communities. I look forward to our continued work with Muslim communities in Oregon who are committed to ensuring that all people are safe from the threat of violent extremism, and to counter the global recruitment efforts of ISIS and other terrorists organizations to travel abroad to join them or commit acts of terrorism in this country."
“The threads of violent extremism are weaving a path through many American cities. As in the Khan case, sometimes that path leads to those who are willing to fund activities overseas. In other instances, the path leads to homegrown extremists who are willing to commit heinous acts or to those who inspire them to do so,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “As the threat becomes more insidious and difficult to track, we rely on our shared community to come forward to help us identify and isolate those who would do harm to our nation. I would ask anyone with information about potential threats to call their local FBI office.”
This case was investigated by the FBI’s Joint Terrorism Task Force. The prosecution was handled by Assistant U.S. Attorneys Ethan D. Knight and Charles F. Gorder, Jr. from the U.S. Attorney’s Office in the District of Oregon. Trial Attorney David P. Cora from the Counterterrorism Section of the Depart of Justice’s National Security Division assisted.
Operator of O.I.D. Process Pleads Guilty for Involvement in $228 Million Fraudulent Tax Refund SchemeRead the Press Release
A California man pleaded guilty yesterday to one count of conspiracy to submit false claims, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Melinda Haag of the Northern District of California.
According to the plea agreement, Duffy R. Dashner, aka Kevin Dashner, 42, of Reseda, California, and his co-conspirators, including Mark R. Maness, operated a business called O.I.D. Process through which they helped others to prepare and file individual federal income tax returns that claimed false Original Issue Discount (OID) interest income and federal tax withholdings, resulting in fraudulent claims for tax refunds (OID returns). Dashner and Maness charged clients of O.I.D. Process a non-refundable registration fee to join the organization, and a 20 percent “refund acquisition fee” for any refund check issued by the Internal Revenue Service (IRS). Dashner and Maness also operated a website and conducted weekly conference calls with clients to promote their business and to assist clients in preparing and filing OID returns.
Dashner and Maness required clients of O.I.D. Process to change their mailing address with the IRS to the address of another co-conspirator who was an attorney in San Francisco. As a result, all correspondence from the IRS to the clients and the clients’ OID refund checks were sent to the attorney’s address rather than the clients’ home address. By receiving the refund checks, Dashner and Maness were able to ensure that they received their 20 percent refund acquisition fee. O.I.D. Process clients filed approximately 200 fraudulent OID returns claiming refunds that totaled approximately $228 million.
Dashner’s sentencing hearing is scheduled for Oct. 2 in San Francisco before U.S. District Judge Susan Illston of the Northern District of California. The statutory maximum sentence for conspiracy to submit false claims is 10 years in prison and a $250,000 fine. Maness previously pleaded guilty to conspiracy to submit false claims against the United States and was sentenced in February 2015 to serve 41 months in prison, and ordered to pay $1,176,668 in restitution to the IRS.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Haag commended the special agents of IRS–Criminal Investigation, who investigated the case, and Trial Attorney Matthew J. Kluge of the Tax Division and Assistant U.S. Attorney Michael G. Pitman of the Northern District of California, who are prosecuting this case.
Further Information:
Case #: CR 12-646-SI
Electronic court filings and further procedural and docket information are available on the U.S. District Court for the Northern District of California’s website. Judges’ calendars with schedules for upcoming court hearings can also be viewed on the court’s website.
Operator of O.I.D. Process, $228 Million Fraudulent Tax Refund Scheme, Pleads GuiltyRead the Press Release
SAN FRANCISCO, Calif. – Duffy R. Dashner (a/k/a Kevin Dashner), pleaded guilty to one count of conspiracy to submit false claims United States Attorney Melinda Haag, Acting Assistant Attorney General for the Tax Division Caroline D. Ciraolo, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Jose M. Martinez, announced.
According to the plea agreement, Dashner, 42, of Reseda, Calif., and his co-conspirators, including Mark R. Maness, operated a business called O.I.D. Process through which they helped others to prepare and file individual federal income tax returns that claimed false Original Issue Discount (OID) interest income and federal tax withholdings, resulting in fraudulent claims for tax refunds (OID returns). Dashner and Maness charged clients of O.I.D. Process a non-refundable registration fee to join the organization, and a 20 percent “refund acquisition fee” for any refund check issued by the Internal Revenue Service (IRS). Dashner and Maness also operated a website and conducted weekly conference calls with clients to promote their business and to assist clients in preparing and filing OID returns.
Dashner and Maness required clients of O.I.D. Process to change their mailing address with the IRS to the address of another co-conspirator who was an attorney in San Francisco. As a result, all correspondence from the IRS to the clients, and the clients’ O.I.D. refund checks, were sent to the attorney’s address rather than the clients’ home address. In this way, Dashner and Maness ensured they would receive a 20 percent refund acquisition fee. O.I.D. Process clients filed approximately 200 O.I.D. returns claiming refunds that totaled approximately $228 million.
Dashner was charged by indictment with one count of conspiracy to submit false claims, in violation of Title 18, U.S.C. § 286, and two counts of aiding and assisting in the presentation of a false income tax return, in violation of Title 26, U.S.C. § 7206(2). Dashner pleaded guilty to one count of conspiracy to submit false claims, in violation of 18 U.S.C § 286. Dashner’s sentencing hearing is scheduled for October 2, 2015 at 11:00 a.m., before the Honorable Susan Illston, United States District Judge, in San Francisco. The maximum statutory penalty for the conspiracy to submit false claims, in violation of 18 U.S.C § 286 is 10 years in prison, and a $250,000 fine, although any sentence would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Maness previously pleaded guilty to conspiracy to submit false claims against the United States and was sentenced in February 2015 to serve 41 months in prison, and ordered to pay $1,176,668 in restitution to the IRS.
United States Department of Justice Tax Division Trial Attorney Matthew J. Kluge and Assistant United States Attorney Michael G. Pitman are prosecuting this case. The prosecution is the result of an investigation by IRS-CI.
Ontario, Ny Man Sentenced on Tax ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Gerald Fretto, 51, of Ontario, NY, who was convicted of filing a false income tax return, was sentenced to three years probation and 100 hours of community service by Chief U.S. District Judge Frank P. Geraci.Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that for the tax year 2007, the defendant filed a tax return that did not report all of the income he earned in that year.
The sentencing is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, and the U.S. Postal Inspection Service, under the direction of Special Agent in Charge Shelly Binkowski.
Omaha Men Sentenced for Investment Fraud SchemeRead the Press Release
United States Attorney Deborah R. Gilg announced that on June 18, 2015, Senior United States District Court Judge Joseph Bataillon sentenced Jonathan Arrington of Omaha, Nebraska, age 45, to a 5 year term of imprisonment, following his conviction for wire fraud. After his release from prison, Arrington will begin a term of supervised release of 3 years. On that same day, Judge Bataillon also sentenced Michael Kratville, of Omaha, Nebraska, an attorney, age 53, to a 4 year term of imprisonment, following his conviction for wire fraud. After his release from prison, Kratville will begin a term of supervised release of 3 years. Lastly, on June 18, 2015, Judge Bataillon also sentenced Michael Welke of Omaha, Nebraska, age 40, to a 3 year term of imprisonment, following his conviction for wire fraud. After his release from prison, Welke will begin a term of supervised release of 3 years. All three defendants will be ordered to make restitution, the amounts to be determined by the court at a later date.
Begin in 2005 and continuing through 2008, Arrington, Kratville and Welke conducted an investment fraud scheme whereby they and their companies, Elite Management Holdings Corporation (EMHC) and MGM Enterprises, all operating out of Nebraska, defrauded at least 100 individuals out of approximately $4,000,000. The defendants solicited mostly friends and acquaintances to invest in "club-like" investment pools operated by EMHC and MGM. These pool funds were purportedly traded in commodity futures contracts (futures) and off-exchange foreign currency contracts (FOREX). To entice prospective pool participants and retain existing pool participants, the defendants pitched their supposed extensive skills and experience in market analysis and investment strategies and the supposedly extremely successful, historical performance of their futures and FOREX trading, models, and strategies. They also claimed to their investors that their trading returns had met or exceeded 3 percent every month from May, 2002 through at least 2007. They further advised their investors that they had sophisticated procedures in place to prevent losses, and that their losses would be limited, because no more than 10 percent of their investment principal (i.e., participating funds) would ever be at risk.
The truth of the matter was that the defendants never did successfully trade in futures, FOREX, or options. Not only did the defendants fail to generate returns of 3 percent or more each and every month from 2002 through June, 2007, the trading conducted on the defendants' behalf by various other traders resulted in nearly a total loss for every investor. Additionally, more than 10 percent of the investors' participating funds were at risk throughout the operation as part of the defendants' fraudulent scheme.
Instead of disclosing the actual trading performance of the pool funds, the defendants periodically provided pool participants with false account statements that provided false returns and false account balances over the course of the scheme. Additionally, the defendants' misappropriated a significant amount of the funds for their own personal use and to pay other pool participants in a Ponzi-like manner in furtherance of the defendants' fraudulent scheme. As a result of the defendants' scheme to defraud, investors suffered an ultimate loss of approximately $4,000,000.00.
This case was investigated by the United States Postal Inspection Service.
Napa Resident Sentenced to Five Years in Prison for Bank Robbery SpreeRead the Press Release
OAKLAND – Joshua James Metoxen was sentenced to five years in prison (to be served consecutive to a two-year state sentence), and ordered to pay $17,251 in restitution for robbing eight banks, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Metoxen, 25, of Napa, pleaded guilty on April 2, 2015, to eight counts of bank robbery. According to the plea agreement, Metoxen admitted to using force or intimidation to rob banks in San Ramon, Middletown, Milpitas, Pleasant Hill, Castro Valley, and Santa Rosa. Metoxen entered the banks wearing sunglasses and a hooded sweatshirt, approached the victim tellers to ask for change, and presented a note that demanded money. Metoxen usually made verbal demands and ordered the tellers to comply with his demands.
Metoxen, was indicted by a federal grand jury on August 14, 2014. He was charged with unarmed robbery of the following banks:
- $2,108 from a U.S. Bank branch in San Ramon, California, on February 23, 2013
- $4,106 from a West America branch in Middletown, California, on February 27, 2013
- $1,350 from a U.S. Bank branch in Milpitas, California, on March 5, 2013
- $4,295 from a Tri-Counties Bank branch in Middletown, California, on March 7, 2013
- $1,479 from a U.S. Bank branch in Pleasant Hill, California, on March 18, 2013
- $1,133 from a U.S. Bank branch in Milpitas, California, on March 20, 2013
- $1,000 from a U.S. Bank branch in Castro Valley, California, on March 21, 2013
- $1,780 from a U.S. Bank branch in Santa Rosa, California, on March 26, 2013
A number of law enforcement bulletins describing the suspect and the cars he used were issued during this multi-agency investigation. Metoxen was apprehended on March 28, 2013, when he attempted to rob a bank in Novato for the second time in two months. The teller called 911 while Metoxen was still in the bank. A Novato detective was able to identify the car being driven by Metoxen as he drove it away from the bank. Novato police arrested Metoxen on Highway 101.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, U.S. District Judge. Judge Gonzalez Rogers also sentenced the defendant to a three year period of supervised release. Metoxen, who has been in custody since his March 2013 arrest, will begin serving his five year sentence immediately.
Assistant U.S. Attorney Christina McCall is prosecuting the case with the assistance of Patty Lau and Vanessa Quant. The prosecution is the result of an investigation by the Federal Bureau of Investigation, Lake County Sheriff’s Office, Novato Police Department, San Ramon Police Department, Milpitas Police Department, Marin County Sheriff’s Office, Pleasant Hill Police Department, Alameda County Sheriff’s Office, Livermore Police Department, and Santa Rosa Police Department.
Members of Drug Trafficking Organization Sentenced to Combined 46.5 Years in Federal PrisonRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced the final defendants tied to a large-scale drug trafficking organization that operated in the Fort Smith area were sentenced this week. The Honorable P.K. Holmes, III presided over the sentencing hearings in the United States District Court in Fort Smith.
U.S. Attorney Eldridge commented, “These defendants brought a significant amount of methamphetamine into the Western District of Arkansas where they sold and distributed it into our communities. The drug trafficking organization responsible has now been dismantled, and its members have been held responsible for their actions. We remain committed to working with our partners in law enforcement to identify and aggressively prosecute those who bring drugs and crime into our communities.”
“Methamphetamine has the ability to destroy entire communities,” stated DEA Assistant Special Agent in Charge, David Downing. “The victims are often children and families who live in neighborhoods where meth dealers pedal their poison. This investigation is a prime example of law enforcement working together to halt those responsible for and profiting from the spread of this vicious drug. DEA is proud to be a part of the law enforcement efforts that have helped free this area of these drug dealers who tried to take this community as their own,” said Downing.
According to court records, as early as November of 2013, agents with the Drug Enforcement Administration (DEA) learned that large quantities of methamphetamine were being distributed out of the Fort Smith area by a multi-state drug trafficking organization led by William Alexander. During the course of the investigation agents made more than ten controlled buys and executed at least five search warrants, which resulted in the seizure of approximately nine pounds of methamphetamine.
The defendants were sentenced as follows:
William Joseph Alexander, aka “Weenie”, age 33, of Fort Smith, Arkansas, was previously sentenced to two hundred and ten months in prison followed by five years of supervised release on one count of Possession of Methamphetamine with Intent to Distribute.
Randall Jernigan, age 31, of Fort Smith, Arkansas, was previously sentenced to eighty four months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine.
Bobby Chanthavong, age 32, of Fort Smith, Arkansas, was sentenced to thirty seven months in prison followed by five years of supervised release on one count of Possession of Methamphetamine with the Intent to Distribute.
Blake Bronson Wright, age 28, of Van Buren, Arkansas, was sentenced to twenty four months followed by three years of supervised release on one count of Distribution of Methamphetamine.
Gary Nathaniel Rogers, age 29, of Huntington, Arkansas, was sentenced to twenty one months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine.
Gentry Alan Rainwater Sr., age 55, of Fort Smith, Arkansas, was sentenced to fifty seven months in prison followed by three years of supervised release on one count of Possession of Methamphetamine with Intent to Distribute.
Kevin Dale Hatley, age 35, of Fort Smith, Arkansas, was sentenced to thirty three months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine.
Joshua Wade Russell, age 30, of Jonesboro, Arkansas, was sentenced to twenty one months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine.
Larry Dale Batt, aka “Spooky”, age 32, of Fort Smith, Arkansas, was sentenced to twenty one months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine.
Theresa Susan Thompson, age 51, of Fort Smith, Arkansas, was sentenced to fifteen months in prison followed by three years of supervised release on one count of Possession of Methamphetamine with Intent to Distribute.
Rosa Sharon, age 50, of Fort Smith, Arkansas, was sentenced to thirty seven months in prison followed by one year of supervised release on one count of Conspiracy to Distribute Methamphetamine.
These cases were investigated by the Drug Enforcement Administration (DEA) and the Fort Smith Police Department. Assistant United States Attorney Clay Fowlkes prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Maryland Real Estate Businessman Indicted for Failing to File Income Tax ReturnsRead the Press Release
A Berwyn Heights, Maryland, resident was indicted by a grand jury sitting in Greenbelt, Maryland, on four counts of failure to file federal individual and corporate federal income tax returns, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today.
David J. Simard purchased and sold real estate in the Maryland and Virginia areas, according to the superseding indictment filed in the District of Maryland. Simard failed to file income tax returns for tax years 2006 and 2009, and failed to file corporate tax returns for tax years 2009 and 2010. According to the superseding indictment, Simard was the owner, operator and president of Pegasus Home Corporation. From 2009 through 2010, Pegasus sold more than 100 real estate properties.
If convicted, Simard faces a statutory maximum penalty of one year in prison and a $100,000 fine for each count.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Christopher O’Donnell and Michael Vasiliadis of the Tax Division, who are prosecuting the case.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Man found guilty of first degree murder at ADX sentenced to serve life in prisonRead the Press Release
DENVER – Silvestre Rivera, age 57, an inmate at ADX in Florence, Colorado, was sentenced today by U.S. District Court Judge Robert E. Blackburn to serve life in prison for the murder of Manuel Torrez. The life sentence was mandatory based on his First Degree Murder conviction. Rivera, and co-defendant Richard Santiago, murdered fellow inmate Torrez on April 21, 2005 while the three were exercising in the recreation area that is part of the ADX’s general population unit.
Rivera was convicted of First Degree Murder following a two week jury trial. The jury delivered the guilty verdict on April 21, 2015. During testimony at Rivera’s trial, it was determined that Rivera, Santiago and Torrez were all part of the Mexican Mafia. Torrez and Santiago arrived at ADX in 2000. Shortly after Rivera’s arrival, Torrez was killed.
Defendant Richard Santiago, age 55, also an inmate at ADX, is pending trial before Judge Blackburn, although no trial date has yet been set. Santiago is presumed innocent unless and until proven guilty.
The Rivera case was investigated by the FBI. Rivera and Santiago are being prosecuted by Assistant U.S. Attorney’s Valeria Spencer and M.J. Menendez.
Man Pleads Guilty to Defrauding FedEx of More Than $600,000Read the Press Release
Memphis, TN – A 32-year-old Canadian man who maintained a lucrative scheme that defrauded FedEx of over half-a-million dollars has pled guilty to mail fraud.
According to statements made in court, between October 2009 and August 2013, Andre Grizzle, through his Pittsburgh, Pennsylvania-based shipping company, LDM International, participated in a scheme to create fraudulent FedEx customer accounts in the names and addresses of legitimate businesses without their consent. FedEx, a private and commercial interstate carrier, then made shipments on these fraudulent accounts.
FedEx allows an individual or business to create a "shipper" account to ship items. The established account is assigned a unique account number, and the account is billed for the shipping services it’s provided. Aware of this, Grizzle utilized U-Ship, an online marketplace for shipping services, to solicit FedEx customers to LDM International. U-Ship provides shippers with the comfort of uploading a listing, indicating what type of freight they have, where it needs to be picked up and delivered, and the size and weight of the shipment. Shipping companies who utilize U-Ship can bid on the listed jobs. The shipper selects the bidder it’s most comfortable with.
Through LDM International, Grizzle placed bids for contracts on U-Ship, offering to ship merchandise at favorable rates. According to the indictment, after receiving the shipping contract, Grizzle would utilize FedEx accounts, which were opened under the name of a legitimate business or a nonexistent business, to ship the merchandise.
As the indictment states, Grizzle, or another party to the scheme, would call FedEx’s customer service center pretending to be a representative of an established business. He would then fraudulently create a new shipping account under the name of the business, and subsequently receive a new account number. Weekly or monthly invoice billing was set up for the account.
Grizzle would use these new shipping accounts to ship packages throughout the country on behalf of himself or customers who contracted with LDM International. He would incur large bills on these accounts and provide fraudulent bank account numbers and/or routing numbers to pay the shipping invoices, according to the indictment.
Unaware that the transaction was fraudulent, FedEx would then send the payment information to its financial institution, and within a few days the payments were charged back to FedEx as fraudulent, according to the indictment. Due to unknowingly providing shipping services under fraudulent accounts, the corporation suffered more than $600,000 in losses.
Today, Grizzle pled guilty to one count of mail fraud. If convicted, he faces up to 20 years in prison and up to a $250,000 fine.
Grizzle is slated to be sentenced on September 24 at 9 a.m. by Judge Sheryl H. Lipman.
This case was investigated by the U.S. Secret Service. Assistant U.S. Attorney David Pritchard is prosecuting the case for the government.
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Lorain County man charged with conspiring to provide support to ISILRead the Press Release
Amir Said Abdul Rahman Al-Ghazi, 38, a U.S. Citizen, was arrested this morning in North Olmsted, Ohio, on charges that he attempted to provide material support to the Islamic State of Iraq and the Levant (ISIL), possessed a firearm as a convicted felon, and trafficked marijuana.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Steven D. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
“According to the allegations in the complaint, Al-Ghazi attempted to provide material support to ISIL and committed other federal weapon and drug offenses,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“Today’s charges are a stark reminder that the radical and dangerous philosophies espoused by groups such as ISIL can be spread in our community through computers and social media,” said U.S. Attorney Dettelbach. “Law enforcement will remain vigilant in combating violent extremism in all its forms.”
“This arrest demonstrates law enforcement’s number one priority – to keep our communities and our nation safe,” said Special Agent in Charge Anthony. “It is clear that no area is immune from the influence of ISIL and its recruitment machine. We hope this arrest will serve as a strong message to others who may consider providing support to terrorists. The FBI and our Joint Terrorism Task Force partners are committed to identifying and stopping these individuals.”
According to the complaint, Al-Ghazi, who changed his name from Robert McCollum earlier this year, is alleged to have pledged his support to ISIL and Abu Bakr Al-Baghdadi via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIL. He also expressed his own desire to perpetrate an attack on the United States and had attempted to purchase an AK-47 assault rifle. Al-Ghazi has communicated with individuals he believed to be members of ISIL in the Middle East and took steps to create propaganda videos for ISIL.
Al-Ghazi was also charged with distributing a schedule 1 controlled substance – marijuana. From the period of February 2014 through June 2015, Al-Ghazi sold almost two kilograms of marijuana to a confidential informant. He was also charged with possessing a firearm even though he had multiple prior felony convictions. On multiple occasions Al-Ghazi expressed his interest in purchasing an AK-47, eventually purchasing one from an undercover agent on June 19, 2015.
This case is being investigated by the FBI’s Cleveland Division’s Joint Terrorism Task Force. This case is being prosecuted by the U.S. Attorney’s Office of the Northern District of Ohio and the National Security Division’s Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Leader of Howard County Bloods Gang Sentenced to 19 Years in Prison for Racketeering Conspiracy and Gun ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Anthony Preston, a/k/a “40,” or “Tone,” age 29, of Laurel, in Howard County Maryland, today to 19 years in prison, followed by five years of supervised release, for conspiring to participate in a racketeering conspiracy, and using and carrying a firearm during and in relation to a crime of violence, in connection with his membership in the Bloods gang operating primarily out of Howard County, Maryland.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary L. Gardner; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.
According to his plea agreement, Preston was a member of the Bloods since at least 2007. Preston is a leader of the “Swann” set, a sub-group of the Bloods. Preston achieved the rank of “O.Y.G” or “O.G.,” (Original Young Gangster or Original Gangster), terms used for a leader in the gang with authority over other Bloods members.
Preston and his co-defendants were identified as members of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department. The investigation included four court ordered wiretaps on gang members’ cell phones. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.
The investigation began with an assault and robbery of an ATF confidential informant in Columbia, Maryland, on November 8, 2011. The ATF was planning a controlled purchase of firearms from co-defendant and fellow gang member Michael Johnson, a/k/a “Ace,” a/k/a “Bloody Mike” after Johnson provided via text two photos of firearms, an assault rifle and a handgun, available for purchase by the CI. Instead, Johnson directed other gang members to rob the CI. Investigation revealed that Preston had been in contact with Johnson on the day of the robbery and was photographed holding the same rifle pictured in the texts sent to the ATF CI.
Among his criminal activities as a gang member, Preston admitted that he: attended gang meetings, supported incarcerated gang members, participated in discussion regarding gang sanctions, and planned and executed retaliation against others who he felt undermined his authority within the gang. Preston also planned, participated and approved of acts of violence, and was a leader in drug trafficking to and with fellow gang members. Preston, and his Bloods associates, regularly carried firearms in connection with and in furtherance of their unlawful acts. Preston admitted to directing or participating in at least 4 assaults, including a March 18, 2012, assault over a drug debt during which Preston threatened to later return and “shoot up the place,” a February 21, 2013, attempted assault of an individual causing problems with members and associates of Preston’s set, an April 12, 2013, attempted assault of someone Preston described as a “fake Blood,” and an April 20, 2013, assault of a former gang member with a knife and mace in a convenience store. The convenience store assault was captured on video, and Preston is seen hitting the girlfriend of the gang member in her face and attempting to spray her with mace. Citizens, including a young child, were injured by the mace sprayed by Preston during the assault. Preston was later overheard by law enforcement admitting to the assault and stating that if he’d had his gun with him Preston would have killed the man.
Preston also admitted that he began selling drugs, including crack cocaine and oxycodone, as early as 2007. Between February and May 2013, Preston was intercepted on numerous wiretap calls with other co-defendants discussing narcotics sales. Two co-defendants each supplied Preston with at least 9000 mg of Oxycodone.
On May 8, 2013, law enforcement executed multiple search warrants and arrested approximately 20 individuals connected with the Bloods gang, including Preston. A search warrant executed at Preston’s residence recovered, among other things, a .22 caliber revolver, with one live round of ammunition, brass knuckles, various prescription pills, marijuana, $1,222 in cash, and several cellular telephones. Preston has prior convictions for armed robbery and attempted armed robbery, and, as a result, was prohibited from possessing a firearm.
To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Judge Russell has also sentenced co-defendants: Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, to 18 years in prison; Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland to 205 months in prison; Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, to 193 months in prison; Rouchell Chesson, a/k/a “Black,” age 31, of Washington, D.C., to 10 years in prison; Christopher Lloyd McGann, a/k/a “Toker,” age 23, of Columbia, Maryland, to eight years in prison; Ryan Gladden, a/k/a "Fats," age 27, of Wilkes Barre, Pennsylvania, was sentenced on January 7, 2015, to 92 months in prison; and David Jerome Robertson, age 23, of Columbia, Maryland to 81 months in prison.
Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.
Laurel Man Sentenced to over 8 Years in Prison for Robbery, Abduction and Sexual Assault ff ProstitutesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Ajibola Erogbogbo, age 19, of Laurel, Maryland, today to 97 months in prison, followed by three years of supervised release, for robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; Chief Richard McLaughlin of the Laurel Police Department; Anne Arundel County State’s Attorney Wes Adams; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, Erogbogbo was a security guard at Six Flags amusement park in Largo, Maryland, and a student at Anne Arundel Community College.
On January 9, 2014, a prostitute posted an ad for sex on the internet and Erogbogbo arranged a “date” at a hotel in Linthicum Heights, Maryland. Erogbogbo arrived wearing a vest that read “POLICE,” and had a metallic badge in one hand and a gun in the other. He told the prostitute that she was under arrest and instructed her to write her name and personal information on a yellow notepad he brought with him. Erogbogbo then handcuffed the woman, took her driver’s license and asked about her involvement in prostitution. Erogbogbo removed the handcuffs and demanded money. The woman responded that she did not have any cash. While Erogbogbo searched her belongings and the hotel room, the woman secretly sent a text message to another prostitute working in the same hotel, who knocked on the hotel door.
Erogbogbo answered the door, took out his gun and pointed it at the second prostitute. He handcuffed both women. When he couldn’t find any money, Erogbogbo ordered the second prostitute to write down her phone number and leave the hotel, leaving the initial prostitute with him.
Erogbogbo took the prostitute out to the side entrance of the hotel, telling her that she was going to jail. As they headed towards his parked vehicle, the prostitute broke free and ran back to the front desk yelling for help. The front desk attendant called 911. Erogbogbo fled in his vehicle. Anne Arundel County Police responded and recovered surveillance video footage from the hotel showing Erogbogbo arriving at the hotel, entering the lobby wearing a vest and attempting to take the prostitute away from the hotel.
On January 11, 2014, Erogbogbo again phoned the prostitute after she posted a new commercial sex ad and attempted to arrange another “date.” Based on the information provided by the prostitute, members of the Maryland Child Exploitation Task Force (MCETF) arrived in the area of the hotel and set up surveillance. Erogbogbo, however, never appeared.
A third prostitute told MCETF members that she had arranged a “date” with Erogbogbo who called her after she had posted an online prostitution ad. A fourth prostitute hid in the closet as a precaution. When Erogbogbo arrived in the hotel room, he identified himself as a police officer and placed the prostitute in handcuffs. Erogbogbo was wearing a vest that read “POLICE”, a law enforcement belt, a holstered gun on the right side and a second gun in a left-side drop holster. Erogbogbo also showed her a metallic badge. When the fourth prostitute emerged from the closet, Erogbogbo demanded that they give him their prostitution money. The prostitutes gave Erogbogbo a total of $1,400. Erogbogbo returned $600 to the fourth prostitute and took $800 from the third prostitute. Erogbogbo wrote a phone number on a piece of yellow paper, told the victims to call him if they needed future assistance from the police, removed the handcuffs and left.
On February 19, 2014, MCETF personnel met another prostitute who said that she too had been recently robbed by Erogbogbo. Erogbogbo had made a “date” with this fifth prostitute from her online post. When he arrived at her hotel room, he said that he was a police officer in the “Human Trafficking Unit.” He showed a badge, and wore a ballistic vest with a “POLICE” patch, and carried a radio that he periodically spoke into. He also carried a handcuff pouch, handcuffs and a gun in a leather holster. After asking the woman several questions regarding her involvement in prostitution, Erogbogbo said that the “only way” to avoid arrest was to have sex with him. The woman at first refused. When she would not take off her clothing, Erogbogbo threatened to put handcuffs on her. He began having sex with her, but stopped when she became unresponsive.
The next day, the prostitute posted a new online prostitution ad under the direction of MCETF. Erogbogbo contacted her to make a “date.” Although she had not told Erogbogbo her exact location, Erogbogbo soon walked into the hotel lobby en route to the “date.” When Erogbogbo encountered the Laurel City Police in the lobby, he attempted to flee. He was stopped by the police as he was attempting to re-enter his vehicle parked outside of the hotel. Erogbogbo was wearing a gold Six Flags Loss Prevention badge and a Smith and Wesson replica BB gun, holstered on his belt.
Police searched Erogbogbo’s residence and vehicle and recovered handcuffs, radios, pepper spray, badge holders and a yellow notepad that contained names, driver’s license numbers, phone numbers and addresses of women, including the prostitutes previously described.
United States Attorney Rod J. Rosenstein commended the FBI, Anne Arundel County and Prince George’s County Police Departments, Laurel Police Department, Anne Arundel County and Prince George’s County State’s Attorney’s Offices and Maryland Child Exploitation Task Force for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Daniel C. Gardner and James A. Crowell IV, who prosecuted the case.
Kansas City Man Charged with Bank RobberyRead the Press Release
KANSAS CITY, KAN. - A federal bank robbery charge was filed Friday against a Kansas City man, U.S. Attorney Barry Grissom said.
A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges Darrell Hunter, 50, Kansas City, Mo., robbed United Missouri Bank at 6900 Mission Road in Prairie Village, Kan. on Dec. 26, 2014.
The complaint alleges that in the Dec. 26 robbery, Hunter entered the bank and asked for a deposit slip. He wrote on the slip, “This is a robbery I got a gun put the money in the bag.”
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 The FBI investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
Justice Department seeks suggestions for who should serve panel to select Community Police CommissionRead the Press Release
On June 12, 2015, the United States District Court approved an agreement between the United States Department of Justice and the City of Cleveland to reform the way police services are delivered by the Cleveland Division of Police. One of the important goals of the agreement is to increase community input into the policies and practices of the police department.
To leverage the experience and expertise of the people of Cleveland, the agreement creates a Community Police Commission that will be responsible for: making recommendations on policies and practices of the police department, including by helping to develop important policies and trainings; working with the communities that make up Cleveland to develop the recommendations; and reporting to the community on the status of police department reforms.
The members of the commission will be chosen by a Selection Panel. The Selection Panel must include representation from each of the following groups:
(a) faith based organizations;
(b) civil rights advocates;
(c) the business/philanthropic community;
(d) organizations representing communities of color;
(e) advocacy organizations;
(f) youth or student organizations;
(g) academia; and
(h) individuals with expertise in the challenges facing people with mental illness or the homeless.
The Justice Department is seeking your suggestions into who should be on the Selection Panel. If you are interested in serving as a member of the Selection Panel, or if you would like to recommend someone to serve on the Selection Panel, please send the following information by June 26, 2015 at 5:00 pm to [email protected]:
- the name and contact information of the person you suggest
- why you believe that person should be considered
Please remember that anyone who serves on the Selection Panel will not be eligible to serve on the Community Police Commission.
Justice Department and City of Cleveland request proposals for monitor in police caseRead the Press Release
Re: Independent Monitor of the Cleveland Division of Police
Dear Applicant,
We are in receipt of the information that you submitted in response to our Request for Information for an independent monitor for the Cleveland Division of Police (“CDP”). As contemplated in that Request for Information, on May 26, 2015, the City of Cleveland and the United States of America (the “Parties”) filed a joint motion and memorandum seeking the entry of a Consent Decree. The matter, which is pending before United States District Court Judge Solomon Oliver, is United States of America v. City of Cleveland, 1:15-CV-01046-SO. Attached is a copy of the Consent Decree as entered by the Judge, which details the applicable timetables, duties, and responsibilities of the independent monitor.
We recognize that your initial submission was made without the benefit of the terms of the proposed Consent Decree. If you remain interested in serving as an independent monitor for the Cleveland Division of Police, please submit any additional information and formal proposals that you wish to have considered by the Parties who will be selecting the monitor.
This request is not part of, and shall not be governed by, any formal municipal, state, or federal procurement process. The Parties will not pay for any information or administrative costs incurred in response to the request. All costs associated with responding to the request will be solely at the interested party’s expense. Candidates considered for monitor or as a subject-matter expert on the monitor’s team must disclose all actual and potential conflicts of interest. All information submitted may become a matter of public record.
A description of the scope of work required by this project, along with the information that must be included in the application, is set out below. The exact requirements and terms of monitoring, as well as the designation of the monitor, are included in the Decree. The ultimate term of the monitorship is to be determined by the Parties and the Court, but is expected to be at least five years. Respondents should carefully consider this multi-year commitment in developing their monitoring teams and plans. As further described below, applications must include a projection of estimated costs and expenses, including yearly estimates, an estimated overall total amount, and a cost-cap above which fees and costs will not be billed.
Scope of Work
The following descriptions of the monitoring team’s expected responsibilities and duties are illustrative and non-exclusive. Generally, the monitoring team will be responsible for independently and objectively assessing and reporting on whether the requirements of the Decree are being implemented, and whether implementation is resulting in constitutional policing by and increased community trust in the Cleveland Division of Police.
The monitoring team’s duties are expected to include the following:
- Development and implementation of an organizational plan, including appropriate staffing and scheduling, for auditing and reviewing CDP’s compliance with the requirements and purpose of the Decree;
- Development of methodologies for conducting reliable audits and reviews of CDP’s compliance with the Decree;
- Recommendation and review of metrics for assessing police practices and their effects during the pendency of the Decree;
- Conducting reliable assessments to determine whether the Agreement has resulted in Constitutional policing;
- Reviewing and commenting on policies, training, and initiatives developed pursuant to the Decree;
- Conducting, analyzing, and reporting on methodologically sound surveys of community members and police officers regarding CDP police practices;
- Reviewing use of force and misconduct investigations to assess their quality, reliability, and adherence to the requirements of the Decree;
- Providing or facilitating technical assistance to CDP, including recommending strategies to improve CDP’s implementation of the Decree;
- Receipt from and provision of information to the Cleveland community, including civilian oversight entities, related to implementation of the Decree;
- Regularly communicating with the City and the United States regarding CDP’s progress implementing the Decree, any obstacles to implementation, and as otherwise necessary to facilitate effective implementation;
- Regularly producing public reports on CDP’s progress implementing the Decree and any obstacles to implementation;
- Maintaining all documents related to this project in a confidential manner as required by the Decree;
- Testifying in proceedings only as provided by the Decree;
- Making public statements only as permitted by the terms of the Decree; and
- Maintaining the highest ethical standards.
The substantive requirements of the Decree are generally grouped into the following areas:
- Community Engagement and Building Trust
- Community and Problem-Oriented Policing
- Bias-Free Policing
- Use of Force
- Crisis Intervention
- Search and Seizure
- Accountability
- Transparency and Oversight
- Officer Assistance and Support
- Supervision
- Policies
Requirements of Monitoring Team
The application to serve as or on the court-appointed monitoring team should clearly demonstrate the respondent’s qualifications to perform the requested scope of work. The application to monitor the Decree should include the following:
- Executive Summary
A brief description of how the team would complete the project.
- Personnel
- The names of the individuals and/or subcontractor consultants who would comprise the team;
- A summary of the relevant background of each team member;
- The internal organization of the team including the areas of responsibility for each member; and
- A description of all other current employment, projects, or other professional undertakings for each team member, noting the team member’s time commitments for each.
- Qualifications
Each team member’s qualifications, addressing the following areas as applicable:
- Monitoring, auditing, evaluating, or otherwise reviewing performance of organizations, including experience in monitoring settlements, consent decrees, or court orders;
- Law enforcement practices, including training, community and problem-oriented policing, complaint and use of force investigations, and constitutional policing;
- Evaluating the breadth and depth of organizational change, including the development of outcome measures;
- Development of effective quality improvement practices;
- Mediation and dispute resolution;
- Statistical and data analysis;
- Information technology;
- Data management;
- Working with government agencies, municipalities, and collective bargaining units;
- Language skills and experience working with limited English proficient persons and communities, in particular communities whose primary language is Spanish;
- Familiarity and understanding of local issues and conditions;
- Effective engagement with diverse communities;
- Creation and evaluation of meaningful civilian oversight;
- Familiarity with federal, Ohio, and local laws, including civil rights laws and policies and rules governing police practices;
- Completing projects within anticipated deadlines and budget;
- Preparing for and participating in court proceedings; and
- Report writing for a broad variety of stakeholders.
- Prior Experience and References
List current or recent (within the past 10 years) project experience for members of the team relevant to the monitoring duties and responsibilities; references for each project listed, including the name of the organization, contact person, title, address, e-mail address, and telephone number; and, if available, examples of non-confidential work product that is similar to the reports required for this project.
- Proposed Activities
Describe (in as specific detail as possible and using illustrations as necessary) the activities proposed to perform the Scope of Work. This discussion may address, but is not limited to:
- Methods of obtaining information;
- Methods of analyzing information;
- Methods of reporting information;
- Frequency of proposed activities;
- Personnel responsible for the various activities described in the Scope of Work and the number of hours anticipated to be devoted to specific aspects of the project by month or quarter, including the number of hours that would be spent on site in Cleveland;
- Coordination with the City and CDP to arrange visits, on-site records reviews, and interviews; and
- Coordination of monitoring activities, information gathering, and communications with the City, the United States, and members of the community.
- Potential Conflicts of Interest or Bias
Disclose any potential or perceived conflicts of interest involving team members, associated firms or organizations, and any employee(s) assigned to the project, or proposed subcontractor(s), including current or former employment, contracts or grants with the City, CDP, or the United States, and any involvement in the last eight years (whether paid or unpaid) with a claim or lawsuit by or against the City, CDP, or the United States or any of their officers, agents, or employees. Any close, familial, or business relationships with any of the mentioned entities, or their agents or employees, must be disclosed. Disclose whether any member of the team has been the proponent or subject of any complaint, claim, or lawsuit alleging police misconduct. To the extent a conflict or potential bias exists, explain why it does not bar the individual’s or the team’s selection, including any legal or ethical opinions or waivers upon which the team relies.
- Estimated Costs
Provide a Cost Estimate for this project based on the above Scope of Work and requirements of the Decree:
- Include a projected budget for all costs including, but not limited to: hourly billing rates, travel costs, whether travel time is billed, sub-consultant/contractor services, overhead, and supplies.
- Break down the different activities that members of the team will perform (e.g., policy review, technical assistance, training assessment, report writing, and/or incident review).
- Include a projected allocation of hourly commitments by each team member, broken down by the number of hours projected for both on-site and off-site work.
- Take into account the uncertainty of the duration of the Decree and include both onetime or fixed costs that are expected regardless of the duration of the contract, and annual costs that are expected for each year the contract is in effect.
- Include an estimate of total costs and a cost-cap above which fees and costs will not be billed.
Application Materials as a Public Record
Under the laws of the State of Ohio, all parts of the application, other than trade secret or proprietary information, may be considered a public record which, if properly requested, the City must make available to the requester for inspection and copying. Additionally, the Parties may choose to share all or some of the submissions with the public. Therefore, to protect trade secret or proprietary information, the Responder should clearly mark each portion of each page—but only that portion of each page—of its application that contains that information. The City will notify the Responder if such information in its application is requested, and will make every attempt to protect trade secret or proprietary information by citing to the applicable exemption in Ohio’s Public Records Laws. Blanket marking of the entire application as “proprietary” or “trade secret” is not acceptable and will not protect the entire application unless each part of the entire application is in fact trade secret or proprietary information. The City is not obligated to protect information that is obviously not a trade secret, obviously not proprietary, and obviously public, even if labeled as such. Upon submission of an application that contains clearly marked trade secret or proprietary information, the Responder is agreeing to defend and indemnify the City against any lawsuit or claim that the City improperly withheld a public record based upon the Responder marking it as a trade secret or proprietary information.
All formal proposals or other additional information must be submitted by close of business Wednesday, July 8, 2015, in electronic format (preferably pdf) to the Parties as follows:
For the United States Department of Justice:
Carole S. Rendon Rashida J. Ogletree
First Assistant U.S. Attorney Trial Attorney
U.S. Attorney’s Office U.S. Department of Justice
Northern District of Ohio Civil Rights Division
801 West Superior Avenue Special Litigation Section
Suite 400 950 Pennsylvania Avenue, NW
Cleveland, Ohio 44113 Washington, D.C. 20530
[email protected] [email protected]
For the City of Cleveland:
Barbara A. Langhenry
Director of Law
City of Cleveland
Department of Law
601 Lakeside Avenue. Suite 106
Cleveland, Ohio 44114
Justice Department Settles Immigration-Related Discrimination Claim Against Staffing CompanyRead the Press Release
The Justice Department reached an agreement today with Accountemps, a division of Robert Half International Inc., a company based in Menlo Park, California, resolving claims that the company engaged in citizenship status discrimination in violation of the Immigration and Nationality Act (INA).
The department’s investigation, based on a charge by a naturalized U.S. citizen, concluded that Accountemps refused to refer the charging party for a federal government contract position because, as a naturalized citizen, the charging party was not born in the United States. Under the INA, employers cannot discriminate against U.S. citizens based on their citizenship status, including refusing to hire them based on whether they were born in or outside the United States.
Under the settlement, Accountemps will continue to refer the charging party for positions for which she is qualified, pay a $2,500 civil penalty, train its staff on the anti-discrimination provision of the INA, and be subject to a one-year monitoring period.
“The INA’s anti-discrimination provision does not recognize different classes of U.S. citizens when it comes to the right to work in the United States,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We applaud Accountemps for its cooperation in addressing the concerns raised in this matter.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination in hiring, firing, recruitment and referral for a fee based on citizenship or immigration status. For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact the worker hotline above for assistance.
Justice Department Settles Immigration-Related Discrimination Claim Against Memphis Staffing CompaniesRead the Press Release
The Justice Department announced today that it reached a settlement agreement with three Memphis-area staffing agencies: Prestigious Placement; PFSWeb Inc.; and its subsidiary, Priority Fulfillment Services Inc. The agreement resolves two complaints alleging discrimination under the Immigration and Nationality Act (INA).
The Justice Department’s investigation found that the companies refused to hire two qualified, Puerto Rican-born individuals because the companies believed that they were born in a foreign country. The companies rejected the workers’ valid Puerto Rican birth certificates and demanded that the workers present naturalization certificates, even though Puerto Ricans are U.S. citizens by birth. Under the anti-discrimination provision of the INA, employers cannot discriminate in hiring or place additional documentary burdens on workers during the employment eligibility verification process based on their citizenship or perceived citizenship.
Under the settlement agreement, the companies will compensate the charging parties for lost wages; pay civil penalties to the United States; undergo training on the anti-discrimination provision of the INA; revise their employment policies and training materials; and be subject to monitoring of their employment eligibility verification practices for two years.
“Puerto Ricans are native-born U.S. citizens who have the same right to work as any other U.S. citizen,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “They should not have to face these types of discriminatory barriers, and the Justice Department is committed to ensuring equal employment opportunities.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral, should contact the worker hotline above for assistance.
Justice Department Reaches Settlement Agreements to Address Unconstitutional Youth Arrest and Probation Practices in Meridian, MississippiRead the Press Release
The Justice Department announced today that, jointly with the state of Mississippi and city of Meridian, Mississippi, it has reached settlement agreements to prevent and address unconstitutional youth arrests and probation practices by the Meridian Police Department and the Mississippi Division of Youth Services, and submitted them to the court for approval.
In 2012, the department filed a lawsuit against the city of Meridian, the state of Mississippi, the Lauderdale County, Mississippi, Youth Court and the Youth Court Judges, alleging systematic violations of youths’ due process rights, in the matter of United States v. City of Meridian, et al. If approved by the U.S. District Court in Jackson, Mississippi, the proposed agreements will resolve the department’s claims against the city of Meridian and state of Mississippi. The agreements incorporate and build on reforms the city and state began during the United States’ investigation and subsequent litigation.
The department’s allegations that defendants Lauderdale County and the Lauderdale County Youth Court Judges failed to provide basic due process protections for children have not been resolved, and remain in litigation.
The agreement with the city of Meridian addresses the Meridian Police Department’s prior practice of arresting students referred by the school district without assessing whether there was sufficient probable cause to justify the arrest. The settlement agreement prohibits the city police department from arresting youth for behavior that is appropriately addressed as a school discipline issue, and requires documented probable cause determinations for any youth arrested for criminal offenses. The agreement also requires the city police department to uphold constitutional protections following a youth’s arrest, mandating Miranda warnings as soon as a youth reasonably believes he or she is not free to leave and prohibiting officers from interviewing detained youth unless a guardian or attorney is present.
The agreement with the state of Mississippi addresses the department’s claims of unconstitutional youth probation practices by the Mississippi Division of Youth Services. The settlement agreement requires state probation officers to implement measures to protect youths’ privilege against self-incrimination, including providing youths with age-appropriate explanations of their rights and the probationary process. The agreement also includes requirements for the contracts that establish the restrictions and rules that youth on probation must comply with. These contracts must be written in terms that are easily understandable to youths and that prevent arbitrary and discriminatory enforcement, and include a clear explanation of the youth’s rights. The agreement prohibits probation officers from recommending incarcerating youths for violations of their probation contracts that would not otherwise amount to detainable offenses, unless and until all other reasonable alternatives to incarceration have been exhausted.
“We commend the city of Meridian and the state of Mississippi’s Department of Human Services and Division of Youth Services for taking these important steps toward ensuring that school disciplinary issues are not inappropriately criminalized, ” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Going forward, the Department of Justice expects to work with Meridian and the state of Mississippi to ensure that children’s constitutional rights are protected in police and probation practices.”
“These agreements will help protect the children of Meridian from deprivations of educational opportunity as well as due process,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi.
Each agreement will be monitored by an independent auditor who will report publicly to the federal court.
Under the agreements, the city and state will work with the United States and independent auditors to establish community input programs. These programs shall include semiannual open meetings, to be held in a publicly-accessible location, where the state and city will inform the public about progress in implementing the agreements and address community concerns related to the substantive areas covered by the agreements.
These agreements also build on reforms that the department’s Educational Opportunities Section obtained in a 2013 settlement with the Meridian Public School District to address school discipline claims in a long-standing desegregation case. To see the consent order, visit http://www.justice.gov/crt/about/edu/documents/classlist.php#race.
The department filed this complaint under the Violent Crime Control and Law Enforcement Act of 1994, which gives the department the authority to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youths in the administration of juvenile justice. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
The Justice Department will be hosting a telephonic community conference call open to members of the public on Monday, June 22, 2015, at 6:30 p.m., CDT. The purpose of this call is to provide community members with information about the investigation and complaint. To participate in the call, dial the following toll-free number: 877-675-0879. When prompted by the operator, provide your name and the pass code: 4611051.
Jury Finds Edmond Man Guilty of Seven Counts of Engaging in Illicit Sexual Conduct with Children in KenyaRead the Press Release
Oklahoma City, Oklahoma – Today, a federal jury found MATTHEW LANE DURHAM, 20, from Edmond, Oklahoma, guilty on seven counts of engaging in illicit sexual conduct with Kenyan children, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Comments from U.S. Attorney Sanford C. Coats on the verdict:
"I first want to recognize and commend the prosecution team, led by Assistant United States Attorneys Robert Don Gifford and David Petermann and Special Assistant United States Attorney Steven Creager. They and their team worked extraordinarily hard in this challenging case. The lawyers, paralegals, legal assistants, and victim witness professionals from my office, along with the exemplary Special Agents from the FBI, combined to present an excellent case to the jury. These public servants should be an example for all who investigate and prosecute criminal cases. I also want to recognize and thank the Kenyan government for their assistance and cooperation with us in seeking justice for these children."
"As for the result, this is not a verdict to celebrate. The only winner here is justice. Yes, justice was sought and obtained for the victims of this abominable crime. However, even a guilty verdict cannot bring back the innocence of the children that was taken by Mr. Durham. Their lives will never be the same, and we can all merely hope and pray that this verdict will someday give them some comfort and peace. The jury has determined that while in Kenya, Mr. Durham committed sexual acts with children. This is simply a sad situation for all involved. The bottom line is that Mr. Durham is a threat to children and it will be our position that he should be extricated from society for a significant period of time. We protect children, no matter where they are from."
According to evidence at trial, Durham was a volunteer at the Upendo Children’s Home, located in Juja, Kenya. Upendo specializes in assisting neglected Kenyan children by providing them with food, housing, clothes, school and religion. Evidence showed that between April 30, 2014, and June 17, 2014, Durham traveled from Oklahoma City to Nairobi, Kenya, and while in Kenya he engaged in illicit sexual conduct with seven children under 18 years of age.
The trial lasted for six and a half days and the jury deliberated for approximately nine hours before finding Durham guilty. Durham was found not guilty on 10 other counts. After the verdict was read, Durham was remanded to the custody of the U.S. Marshals.
At sentencing, Durham faces up to 30 years in prison for each of the guilty counts. A sentencing date will be set by the court. Reference is made to the court record for further information.
This case was the result of an investigation by the Federal Bureau of Investigation, who was assisted by the United States Embassy in Kenya, the U.S. Department of State Diplomatic Security Service, and the Kenyan National Police Directorate of Criminal Investigations. The case was prosecuted by Assistant U.S. Attorney Robert Don Gifford II, Assistant U.S. Attorney David P. Petermann, and Special Assistant U.S. Attorney Steven W. Creager.
June Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 11 indictments charging 12 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Juan Arturo Bahena Arce, age 31, of Omaha, is charged with illegal reentry into the United States on or about June 1, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ramiro Bautisa Martinez, age 37, of Omaha, is charged with illegal reentry into the United States on or about May 21, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Roberto Garcia Aquino, age 26, of Omaha, is charged with illegal reentry into the United States on or about May 21, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Rodrigo Jordan Gastelum-Flores, age 25, of San Ysidro, California, is charged with possession with intent to distribute 1 kilogram or more of a mixture containing heroin on or about June 7, 2015. The maximum possible penalty if convicted is 10 years to Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Ruben Hernandez-Arellano, age 39, of Fremont, is charged with illegal reentry into the United States on or about May 19, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Joshua J. Just, age 38, of Funk, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt of child pornography from on or about December 22, 2014, and continuing to on or about April 9, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Just with possession of child pornography on or about April 9, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. The indictment also alleges any and all property, real or personal, that constitutes or is derived, directory or indirectly, as a result of the said violation, should be forfeited to the United States.
* Rochelle L. Klug, age 29, of Niobrara, Nebraska, is charged with federal program theft. The defendant was an agent of the Santee Indian Reservation Housing Authority and allegedly took cash from the Santee Housing Authority totaling more than $20,000. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Paul D. Martin, age 45, of Kearney, is charged in a thirty-six count Indictment. Counts 1–12 of the indictment charge the defendant with delivery of misbranded drugs on various dates from on or about August 23, 2013, and to on or about July 25, 2014. The maximum possible penalty if convicted is 3 years imprisonment, a $10,000, fine, a 1 year term of supervised release, and a $100 special assessment for each count. Counts 13-24 of the Indictment charge Martin with mail fraud beginning as early as September 1, 2010, and continuing to July 30, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Counts 25-36 of the Indictment charge the defendant with wire fraud beginning as early as September 1, 2010, and continuing to July 30, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Zenia Miller, age 56, of Omaha and Home Care Services, Inc., Omaha, Nebraska, are charged in a seventeen-count Indictment. Counts 1-10 of the Indictment charge the defendants with health care fraud from on or about September 1, 2012, and continuing until on or about September 30, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count for defendant Miller and a $500,000 fine and $400 special assessment for Home Care Services, Inc. Counts 11-17 of the Indictment charge Miller and Home Care Services, Inc., with wire fraud from on or about September 1, 2012, and continuing until on or about September 30, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count for defendant Miller and a $500,00 fine and $400 special assessment for each count for Home Care Services, Inc. According to the indictment the defendants allegedly billed Medicaid for services that were never rendered.
* Gerry L. Pierce, age 54, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt and distribution of child pornography from at least on or about November 30, 2013, to on or about April 7, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Pierce with possession of child pornography from at least on or about November 30, 2013 to on or about February 18, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment.
The indictment also alleges any and all property, real or personal, that constitutes or is derived, directory or indirectly, as a result of the said violation, should be forfeited to the United States.
* Juan C. Reyes-Ramos, age 31, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine and cocaine on or about October 14, 2013. The maximum possible penalty if convicted is 10 years to Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Reyes-Ramos with possession with intent to distribute a mixture containing methamphetamine on or about May 22, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property, that constitutes or is derived, from proceeds of the violations or used to facilitate the commission of the violations should be forfeited to the United States.
Inmate housed at Florence Correctional Complex sentenced for threatening to assault and murder correctional officers and their familiesRead the Press Release
DENVER – Theron Maxton, age 60, an incarcerated inmate, was sentenced today by U.S. District Court Judge Philip A. Brimmer to serve 100 months in federal prison followed by 3 years of supervised release for retaliating against a federal officer by threats to the officer and/or the officer’s family member, U.S. Attorney Office John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. The prison sentence is to be served consecutive to his current prison sentence for threatening federal officers out of South Carolina.
On January 22, 2015, Maxton was found guilty following a three day jury trial of four counts of retaliating against a federal officer by threats to the officer and/or the officer’s family member. Maxton was an inmate at the Florence Correctional Complex, in both the United States Penitentiary and the Federal Correctional Institution at the time he made the threats.
According to the Second Superseding Indictment, obtained on May 8, 2014, and facts presented at trial, in November of 2012, the defendant threatened to assault or murder prison correctional officers, and in some cases, their families, in retaliation of the officers performing their official duties. The threats were made in letters, either to the correctional officer directly, or in one instance to a former now released cellmate. In that letter, Maxton attempted to persuade the former inmate to kill the Prison staff members and their families. In December of 2012, Maxton also said directly to an FBI special agent that if given the opportunity he would try to kill prison staff members.
This case was investigate by the Federal Bureau of Investigation.
The defendant was prosecuted by Assistant U.S. Attorneys Valeria Spencer and David Tonini.
Idabel Man Found Guilty of Murder During Perpetration of Child Abuse of Two Year OldRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DAKOTA LANE WILLISTON, age 20, of Idabel, Oklahoma was convicted by a federal jury for the charge of Murder in the First Degree in Indian Country Committed During the Perpetration of Child Abuse, in violation of Title 18, United States Code, Sections 1111, 1151 and 1153, punishable by imprisonment for life and/or up to $250,000.00 fine.
After seven days of trial, the jury deliberated approximately three and one-half hours and found beyond a reasonable doubt that on about July 23, 2013, in the Eastern District of Oklahoma, in Indian country, DAKOTA LANE WILLISTON, an Indian, did unlawfully kill Payton Cockrell, a 2 year old female human being, during the perpetration of child abuse, as defined by Title 18, United States Code, Section 1111(c)(3), against Payton Cockrell.
The charges are a result of an investigation by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the McCurtain County Sheriff’s Office and the Choctaw Nation Tribal Police.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial. The defendant was remanded into the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorneys Dean Burris and Linda Epperley represented the United States.
Howell Resident Charged in Federal Child Pornography ProbeRead the Press Release
Dennis Fraser, 44, of Howell, Michigan, was arrested on charges alleging he distributed, possessed and received child pornography, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge, Marlon Miller, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations.
The affidavit supporting the criminal complaint states that ICE agents executed a search warrant on Fraser’s email account and found images of children engaging in sexually explicit conduct. A forensic search of Fraser’s personal computer revealed 211 images of child pornography and multiple link files with titles consistent with child pornography.
Fraser will appear in federal court today at 1:00 p.m. where it will be determined whether he will be detained or released pending trial. If convicted, Fraser faces not less than 15 years in prison and up to 40 years maximum.
This case is being prosecuted by Mollie O’Rourke and investigated by special agents with U.S Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.