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Thursday 18 June 2015
Mail Carrier Charged with Taking Bribes to Deliver Packages Containing MarijuanaRead the Press Release
BIRMINGHAM – Federal Authorities today arrested a mail carrier on charges that he took bribes to deliver packages containing marijuana, announced U.S. Attorney Joyce White Vance, Assistant Special Agent in Charge Christopher Nugent, U.S. Postal Service - Office of Inspector General, Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, and Alabama Law Enforcement Agency Secretary Spencer Collier.
The arrest of EARL JERON WHITE, 33, of Pleasant Grove, follows his indictment by a federal grand jury on May 28. The grand jury returned an indictment charging White with one count of possessing with intent to distribute marijuana in Jefferson County between March 2013 and April 2014. It also charged White with one count of being a public official who demanded or accepted payment for delivery of the U.S. mail within that same time. White appeared before a federal magistrate judge today for a formal reading of the charges against him.
The maximum penalty for the drug distribution charge is five years in prison and a $1 million fine. The maximum penalty for the bribery count is two years in prison and a $250,000 fine.
“Corruption of postal employees is a significant vulnerability and a serious breach of public trust,” Gonzalez said. "With the coordinated efforts of the U.S. Postal Inspection Service and our law enforcement partners, postal inspectors will continue their vigilant watch against anyone receiving bribes to transport illegal drugs through the U.S. Mail.”
The U.S. Postal Inspection Service, the U.S. Postal Service – Office of Inspector General, in conjunction with ALEA's State Bureau of Investigation, investigated the case, which Assistant U.S. Attorney John B. Felton is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Longmont man is sentenced to 84 months in prison for investment fraud schemeRead the Press Release
DENVER – Gary Snisky, age 49, of Longmont, Colorado was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 84 months in federal prison, for mail fraud and money laundering, federal authorities announced. Following his prison sentence, Snisky was ordered to serve 3 years each on supervised release. He was also ordered by Judge Moore to pay $2,531,032.22 in restitution to the victims.
Snisky plead guilty on January 5, 2015 and was indicted by a federal grand jury in Denver on November 19, 2013. Snisky’s co-conspirator, Richard Greeott, plead guilty on October 7, 2013 to mail fraud and money laundering charges and was sentenced by Judge Phillip A. Brimmer on April 27, 2015 to six months in federal prison for his significantly smaller role in the scheme.
According to information contained in court documents for both cases, including the plea agreements and indictment, from 2009 through 2011, Snisky operated Colony Capital in Colorado, which purported to be a private equity firm offering investment opportunities in bonds, futures trading, and other offerings. In 2011, Snisky shut down Colony Capital and formed Arete in Longmont, Colorado, which operated in a similar manner. As part of his scheme, Snisky repeatedly falsely told financial advisors and investors that he was an “institutional trader” who was “on Bloomberg,” which Snisky claimed made him part of an elite group of people who could “make markets” and who had access to lucrative opportunities to which ordinary investors did not have access.
From July of 2011 through January 2013, Snisky offered investors a “proprietary value model” which was based on using the investors’ money to purchase Ginnie Mae bonds. Throughout 2012, Snisky continued to make false assurances about the safety of investing in the Bond Program despite the fact that Snisky knew that he had not purchased any Ginnie Mae bonds as promised. Throughout the scheme, Snisky sent fabricated account statements to investors that falsely reflected that their money had been invested in the bonds as promised.
Additionally, in 2010, Snisky asked Greeott to develop an algorithm to support a fully-automated trading system for trading in the futures market. In 2011, Greeott believed that he had developed an algorithm for trading in the futures market that he tested in a simulated environment for several months. However, at all times, the algorithm was still in a developmental phase. At no time did anyone at Colony Capital or Arete trade a significant amount of money or make any real profit in the futures market. However, starting in 2010, Snisky falsely led investors, potential investors, and financial advisors to believe the algorithm was being used by Colony Capital, and later Arete, to profitably trade in the futures market. Based on these false representations, several victims invested money in Snisky’s futures trading program.
The net loss Snisky caused to investors in the bond and futures trading programs was $5,226,965.54. To date, as a result of asset forfeiture proceedings, victims are in the process of being paid restitution in the amount of $2,695,913.31. The remaining amount of restitution is $2,531,032.22, most of which is jointly liable between Snisky and Greeott.
“The defendant took advantage of investors through a completely fraudulent scheme,” said U.S. Attorney John Walsh. “The prison sentence handed down serves not only as a deterrent to would-be fraudsters, but also as reassurance to victims of this financial crime.”
"The FBI will continue to protect the financial markets by working closely with its law enforcement and regulatory partners,” said FBI Denver Division Special Agent in Charge Thomas Ravenelle. ‘We trust that the outcome of this investigation will deter others who are seeking to engage in similar criminal activity, and attempting to defraud innocent investors.”
“All too often we hear of hard working Americans who lose their life savings to investment schemes; their trust was violated when they were lied to about the success and profitability of the investments,” said Gilbert R. Garza, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
“Investment Schemes, like many financial crimes, erodes the integrity of our financial industries, and can threaten the economic and emotional health of our investors,” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “It is critical we make every effort to protect the public from investment fraud schemes and its effect on our consumers by ensuring the integrity of the U.S. Mail.”
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service.
This case was prosecuted by Assistant U.S. Attorney Pegeen D. Rhyne, with Assistant U.S. Attorney Tonya Andrews handling the forfeiture proceedings.
Lead Defendant in Blytheville Drug Conspiracy, Kenneth Brown, II, Is Sentenced to 151 MonthsRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Gregory Gant, Special Agent in Charge of the Alcohol, Tobacco, Firearms, and Explosives (ATF) Kansas City Field Division, announced today the conclusion of a three-year case involving the large-scale distribution of methamphetamine in Blytheville, Ark. United States District Court Judge J. Leon Holmes today sentenced Kenneth Brown, II, aka “Iceman,” the lead defendant in a 11-defendant indictment, to 151 months imprisonment for his role as the leader of the drug conspiracy. Brown, II, age 29, of Blytheville, is the final defendant to be sentenced in the case, which was comprised of 11 Blytheville defendants indicted by a federal grand jury on March 6, 2013, in Case No. 4:13-cr-00068 JLH.
Brown, II, was the lead defendant in the original 53-count indictment that involved a drug trafficking organization responsible for selling hundreds of pounds of methamphetamine. He pleaded guilty on December 1, 2014, to a superseding indictment charging him in nine drug or firearms counts. There is no parole in the federal system. Brown, II’s, sentence also includes five years of supervised release and the forfeiture of multiple firearms, and $7,530 in drug proceeds. Brown, II, entered into a plea agreement with the United States in which he pleaded guilty to conspiracy to distribute methamphetamine, with enhancements for using a firearm in connection with the offense and maintaining a drug premises. The United States dismissed the remaining eight counts of the superseding indictment.
“The commitment this office has made to eradicating drug trafficking and violent crime in Northeast Arkansas and the entire Arkansas Delta has never wavered,” Thyer said. “The citizens of Blytheville will not have to deal with these 11 individuals, who were bringing drugs, guns, and violence into the community, for many years. Kenneth Brown, II, in particular, was responsible for importing many kilograms of methamphetamine into Northeast Arkansas, and today’s sentence is the end result of that behavior. Let the sentences in this case be a warning: If you traffic in guns or drugs, you will serve time in prison.”
All members of the conspiracy pleaded guilty pursuant to plea agreements, and most were sentenced in April 2014. Renaldre Jackson was sentenced in September 2014. The other sentences in this case include:
• Tyrone McCray, 200 months, for possession with intent to distribute methamphetamine and felon in possession of a firearm (also qualified as a career offender under United States Sentencing Guideline § 4B1.1)
• Andre Robinson, 151 months, distribution of methamphetamine (also qualified as a career offender)
• Derrick Rhodes, 151 months, distribution of methamphetamine (also qualified as a career offender)
• Renaldre Jackson, 120 months, conspiracy to distribute methamphetamine
• Tremayne Brown, 120 months, conspiracy to distribute methamphetamine
• Kenneth Brown, Sr., 120 months, distribution of methamphetamine
• Brian Robinson, 120 months, possession with intent to distribute methamphetamine and possessing a firearm in connection with a drug-trafficking crime
• Bobby Knight, 72 months, possession with intent to distribute methamphetamine and possessing a firearm in connection with a drug-trafficking crime
• Issac Black, 60 months, possession with intent to distribute methamphetamine
• Rashead Staton, 60 months, distribution of methamphetamine
The investigation into Brown, II’s, organization, which included his father, Brown, Sr., brother, Tremayne Brown, and cousins Knight and McCray, began in early 2012. During the course of the investigation more than 15 controlled purchases of methamphetamine were made from members of the conspiracy resulting in the seizure of more than one kilogram of methamphetamine from these controlled purchases. Including other seizures during the execution of search warrants and traffic stops, approximately 1.7 kilograms of methamphetamine was recovered by law enforcement from this organization.
On January 18, 2013, law enforcement agents executed a search warrant at 1305 Dogwood, Blytheville, Ark., a drug stash house used by Brown, II, and others. Inside the home agents located Brown, II, in a bedroom that contained multiple firearms, 228.5 grams of methamphetamine and 26 pounds of marijuana. In Brown, II’s, pocket was a drug ledger that detailed more than $100,000 in drug debts owed to him.
The investigation was conducted by ATF, in partnership with the 2nd Judicial Drug Task Force, which includes officers from the Blytheville Police Department, the Osceola Police Department and the Mississippi County Sheriff’s Office.
Law Enforcement Officials Announce Results of Heroin InvestigationsRead the Press Release
HARRISONBURG, VIRGINIA – Acting United States Attorney Anthony P. Giorno, along with officials from the Drug Enforcement Administration and the Northwest Virginia Regional Drug and Gang Task Force, announced today three significant case results in the ongoing effort to combat the rising use and abuse of heroin.
In separate hearings today in the United States District Court, two local defendants were sentenced for distributing heroin that led to fatal overdoses while a third defendant, a Baltimore man who authorities identified as a major source of heroin in the Winchester region, pled guilty to a drug trafficking conspiracy that led to at least six heroin overdoses, three of which were fatal.
“The positive outcomes in these cases highlight the tireless efforts by law enforcement in this area to combat the epidemic of heroin overdoses that continues to torment the region and that has been spreading across the country,” Acting United States Attorney Anthony P. Giorno said today. “We will continue to pursue these important cases and will target the sources of this heroin both locally and elsewhere. These efforts supplement our continuing support for education, prevention and treatment programs that are similarly necessary to the success of our endeavors to combat heroin use and abuse in the region.”
“Heroin is not just a “big city” problem as evident in today’s sentencing announcements. Mr. Giles led a complex heroin trafficking network, controlling numerous drug dealers and drug users. Mr. Giles brought this lethal drug into the community of peaceful Winchester, Virginia, robbing people of their lives,” said Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration. “I say to drug dealers like Mr. Giles, there are no winners in this life and death game you have chosen to play. You will lose and pay a severe price for your actions. The announcement today is the result of the partnership between DEA agents, the Northwest Virginia Regional Drug and Gang Task Force and the United States Attorney’s Office of the Western District of Virginia. We will continue our work with our law enforcement partners and the community, every day, combating these dangerous drug trafficking organizations.”
“These cases were investigated from overdoses in the Northern Shenandoah Valley Region that are continuing to lead to significant suppliers in Baltimore, Maryland, thanks to a cooperative effort with the DEA, the United States Attorney’s Office and the Northwest Virginia Regional Drug and Gang Task Force,” Virginia State Police Special Agent Jay Perry, Coordinator of the Task Force, said today. “Our combined efforts are bringing and will continue to bring large scale dealers from Baltimore, Maryland, that are putting heroin on our local streets, to justice. We want Baltimore heroin dealers to take notice; when you sell to Virginia registered vehicles, and our citizens, we will track you down.”
Today in District Court, Christopher Rojuan Giles a.k.a. “C” and “Charlie,” 27, of Randallstown, Maryland, pled guilty to a one count information charging him with conspiracy to distribute heroin which resulted in six overdoses. Giles admitted today that between February 2013 and October 2014, he and other members of the conspiracy conspired to distribute more than 1,000 grams of heroin, resulting in overdoses, more than 280 grams of cocaine base (“crack”), and powder cocaine.
Evidence presented at today’s hearing by Assistant United States Attorney Elizabeth G. Wright showed the Giles, who operated in various locations in and around Baltimore, was a major source of heroin for smaller dealers and heroin users in the Winchester area. Evidence presented also proved that the heroin Giles distributed led to at least six heroin overdoses, including three fatal overdoses. The overdoses include the death of T.R.C. on November 17, 2013, the death of R.F.L. on March 19-20, 2014, the overdose of J.H.H. on March 21, 2014, the overdose of B.D.W. on April 5, 2014, the overdose of G.R.F. on September 5, 2014, and the death of B.E.W. on October 10, 2014. At sentencing, Giles faces a statutory penalty of between 20 years and life in prison.
As part of this plea, Giles admitted he provided the heroin that led to the non-fatal overdoses of J.H.H. and B.D.W. in March and April 2014, respectively. Three other defendants have previously been sentenced in federal court based upon the overdose of J.H.H. Two defendants, Stephanie Diane Alkire, 23, of Winchester, Virginia, and Donna Jean Jenkins, 37, of Winchester, Virginia, have previously entered pleas of guilty to distribution of heroin in connection with the overdose of B.D.W.
In a separate hearing, Scott Matthew Pierce, 44, of Stephens City, Virginia, who previously pled guilty to distributing heroin that led to an overdose, was sentenced to 210 months in federal prison. Pierce, who routinely purchased heroin from Giles in Baltimore and transported it back to Winchester, previously admitted to distributing heroin to victim R.F.L. on March 19, 2014. R.F.L. subsequently used the heroin purchased from Pierce, overdosed and died.
In May 2015, Brandy Dawn Kelly, 36, of Winchester, Virginia, pled guilty to one count in an indictment charging her and Giles with conspiracy to distribute heroin which resulted in the overdose of R.F.L., based upon their distributions with Pierce.
In a third hearing today, Danielle Nicole Orndorff, 27, of Winchester, Virginia, who previously pled guilty to distributing heroin that led to two overdoses, was sentenced to 163 months in federal prison. Combined with time she is serving for a state sentence pertaining to the first of the two overdoses, the total sentence is 15 years. Orndorff previously admitted to distributing heroin to victims B.M.B. and J.W.S., who both used the heroin and subsequently overdosed and died.
The investigation of these cases was conducted by the Drug Enforcement Administration and the Northwest Virginia Regional Drug Task Force. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg, and the Virginia State Police. Assistant United States Attorney Elizabeth G. Wright prosecuted the cases for the United States.
Lakewood man indicted on child pornography chargesRead the Press Release
Daniel Nieberding, 25, of Lakewood, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment charges that from on or about September 6, 2010, through on or about February 8, 2011, Nieberding knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On March 31, 2011, images of child pornography were also found on his Dell laptop computer and external hard drive.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Cleveland Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Labor Union Treasurer Pleads Guilty to EmbezzlementRead the Press Release
BOISE - Helen Herold-Roden, 49, of Boise, Idaho, pleaded guilty today to embezzlement and theft of labor union assets, U.S. Attorney Wendy J. Olson announced. Herold-Roden pleaded guilty pre-indictment to a one-count criminal information filed by the U.S. Attorney’s Office.
According to the plea agreement, from 2002, until July 2014, Herold-Roden was the secretary-treasurer of the Communication Workers of America (CWA) Local Union (LU) 7603 in Meridian, Idaho. CWA LU 7603 members are employed in the telecommunications industry, and include employees of Century Link, AT&T, and the Idaho Statesman. Membership dues are based on a percentage of each member’s individual hourly wage and are electronically deposited into the CWA LU 7603 checking account at DL Evans Bank twice each month.
According to the plea agreement, from 2008, through 2014, Herold-Roden embezzled approximately $138,658 of funds belonging to CWA LU 7603 for her personal use. Herold-Roden accomplished this in two ways. First, as secretary-treasurer, she had check-signing authority for the CWA LU 7603’s checking account at DL Evans Bank. On approximately 28 occasions, she wrote duplicate checks to herself and vendors to pay personal bills. Second, as secretary-treasurer, she had an ATM/debit card for CWA LU 7603’s checking account at DL Evans Bank. On approximately 740 occasions, using the ATM/debit card, she made cash withdrawals, VISA debit card payments, and wire transfers to make personal payments to vendors such as Farmers Insurance, GEICO Insurance, Qwest, Intermountain Gas, Idaho Power, Verizon Wireless, GM Financial, Capital One, Chevron, Purchasing Power, HamLib, Experian, Starbucks, Fred Meyer, Albertson’s, Target, among others.
The charge of embezzlement and theft of labor union assets is punishable by up to five years in prison, a maximum fine of $10,000, and up to three years of supervised release.
Sentencing is set for September 8, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
“This defendant occupied a position of trust for workers in the telecommunications industry,” said Olson. “When individuals betray that trust for their own personal gain, this office will work closely with its law enforcement partners to investigate and prosecute.”
The case was investigated by the United States Department of Labor, Office of Labor-Management Standards.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Kentuckiana Physician Charged with Prescribing Pain Medications That Resulted in the Deaths of Five Patients Faces Additional Charges Including Conspiracy, Money Laundering and Health Care FraudRead the Press Release
LOUISVILLE, Ky. – A Kentuckiana physician charged with prescribing pain medications that resulted in the deaths of five patients, unlawful distribution or dispensing of controlled substances and health care fraud, has been charged with conspiracy, money laundering and an additional count of health care fraud announced Acting United States Attorney John E. Kuhn, Jr.
Jaime Guerrero, age 47, formerly a medical physician with offices in Louisville, Kentucky, and Jeffersonville, Indiana, was charged by superseding indictment on June 16, 2015.
According to the superseding indictment, beginning no later than November 1, 2009, and continuing through January 1, 2013, Guerrero conspired with others to knowingly and intentionally distribute and dispense, schedule II and III controlled substances to patients, without a legitimate medical purpose and beyond the bounds of professional medical practice.
Further, beginning in December, 2009, and continuing through May 2014, Guerrero allegedly unlawfully prescribed and dispensed schedule II and schedule III pain medications to 30 patients, without a legitimate medical purpose and beyond the bounds of professional medical practice.
Further, the superseding indictment charges Guerrero with dispensing Oxycodone, a schedule II controlled substance, to K.J., between June 6, 2011, through August 25, 2011, without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in K.J.’s death on or about August 29, 2011. That Guerrero intentionally distributed and dispensed, Methadone, a schedule II controlled substance, to D.N., between December 15, 2009, through April 1, 2010, without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in D.N.’s death on or about April 5, 2011. That Guerrero knowingly and intentionally distributed and dispensed, Oxycodone, to R.S., between December 10, 2009, through February 9, 2010, without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in R.S.’s death on or about February 18, 2010. That Guerrero dispensed Oxycodone, to P.F. December 28, 2009, and continuing through February 20, 2012, without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in P.F.’s death on or about March 3, 2012. That Guerrero knowingly and intentionally distributed and dispensed, Hydrocodone, a schedule III controlled substance, to S.O., between January 6, 2010, and continuing through September 16, 2011, without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in S.O.’s death on or about September 24, 2011.
Guerrero is further charged with three counts of health care fraud for fraudulently billing various health care benefit programs and for submitting fraudulent claims for patient health care counseling. Specifically, on May 26, 2011, June 15, 2011, and June 22, 2011, Guerrero allegedly saw more than 100 patients on each of the dates, by himself, and spent approximately 3 minutes or less with each patient, and fraudulently billed various health care benefit programs, for office visits at a higher code than the service provided. And for directing a staff member, who was not a licensed counselor, to provide drug education classes to patients, and falsely and fraudulently, bill various health care benefit programs, by submitting claims for 15-30 minute counseling sessions while the defendant was out of the office. In addition, the superseding indictment charges Guerrero with falsely and fraudulently submitting over 100 claims to various health care benefit programs for office visits at a higher code than the service provided; for office visits that were not medically necessary or within the course of usual medical practice; submitting claims for services that were not sufficiently documented in the patient’s medical record; and making claims for office visits as though a physician saw the patient, when in fact, a nurse practitioner saw the patient.
The superseding indictment includes a money laundering charge. Guerrero is accused of redeeming (paying the taxes) a building located at 1201 West Wall Street in Jeffersonville, Indiana, with $89,556.25 in cash derived from unlawful activity - the unlawful dispensing and distribution of controlled substances and health care fraud.
If convicted at trial, Guerrero faces up to life in prison, a financial fine and a period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), the U.S. Drug Enforcement Administration (DEA), Indiana and Kentucky Medicaid Fraud Control Units, and Louisville Metro Police Department (LMPD).
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Kanawha County man pleads guilty to federal firearm offenseRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Kanawha County man pleaded guilty today in federal court in Charleston to being a felon in possession of a firearm. Travis Lee Hudnall, 30, of Hansford, West Virginia entered a guilty plea to possessing a Remington 12 gauge shotgun that he pawned in Charleston on March 13, 2014. Hudnall had previously been convicted in 2008 in Kanawha County of daytime entering without breaking, a felony offense that made it illegal for Hudnall to possess a firearm.
Hudnall faces up to 10 years in federal prison when he is sentenced on September 17, 2015.
The investigation was conducted by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
KC Woman Sentenced for $3 Million Fraud Scheme That Forced Employer to CloseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for a nearly $3 million fraud scheme that forced her employer out of business.
Irene Marie Brooner, 52, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to five years in federal prison without parole. The court also ordered Brooner to pay $2,963,914 in restitution and to forfeit to the government a 2004 Lexus and numerous assorted jewelry.
On Oct. 22, 2014, Brooner pleaded guilty to bank fraud. Brooner, a certified public accountant, worked at Galvmet, Inc., a sheet metal fabrication facility and steel service center located in Kansas City, from 2001 until her termination in February 2014. At its peak in 2008, the company had 26 employees and $14 million in annual sales. Galvmet filed for bankruptcy and ceased operations in 2014. At the time of closing, the company had 18 to 20 employees and $10 million in annual sales.
Brooner’s duties as controller included managing payroll, accounts receivable and payable, and maintaining the ledger at Galvmet.
Brooner admitted that, over a period of more than 10 years (January 2004 until February 2014), she created a total of 389 unauthorized Automated Clearing House (ACH) transactions from Galvmet’s bank account to her personal bank accounts. (An ACH is a batch-oriented funds transfer system that includes direct deposits of payroll from companies.) Those unauthorized ACH transactions included 148 payments to her checking account and 133 payments to her savings account. Brooner also defrauded Galvmet by inflating her salary. From March 2004 to December 2011, Brooner manipulated the payroll account to increase her net pay on approximately 108 payroll checks.
Brooner’s fraud scheme resulted in a loss of at least $1,863,914 to Galvmet. As a result, Galvmet ceased operations. While reviewing bank records during the filing of Galvmet’s Chapter 13 bankruptcy in February 2014, the company’s president noticed unauthorized transfers from Galvmet’s payroll account to Brooner’s personal account. He reported the apparent embezzlement to the FBI.
To keep the scheme going, Brooner also falsified documents to support Galvmet’s operating loan with Missouri Bank & Trust, causing an additional loss to the bank of $1.1 million. The total loss from Brooner’s fraud scheme was $2,963,914.
Brooner spent the embezzled funds on personal items. Brooner spent some of the proceeds to remodel, stock, furnish and decorate the ornately-finished bar in the basement of her new home. The bar, which she called “the Dirty Duck,” includes seating for approximately 15, a granite bar top, four or five tap lines, a refrigeration system, three flat-screen televisions, a smoke machine at the entrance, two couches and stained wainscoting around the room approximately eight feet tall. Mannequins, positioned throughout the bar, are outfitted with authentic U.S. and German uniforms and weaponry from the World War II era, including a Thompson sub-machine gun and multiple M-1 Garands with attached bayonets. Brooner told FBI agents that her husband, a carpenter, remodeled the bar in 2003 and 2004. From 2004 to 2014, Brooner spent $18,383 on alcohol.
Brooner’s spending included paying off her mortgage for $289,290, buying $81,686 in jewelry, and spending at least $400,392 on clothing and other retail, $97,180 on restaurants, $78,439 on vehicles, $169,389 on furniture and home decor, $62,003 on travel, $38,317 on electronics, $21,346 in ATM withdrawals, $59,571 on spa visits and beauty items, $68,745 on tuition for her children, $18,383 on alcohol, $104,060 to her children, $216,377 in assorted checks under $500, $64,557 in donations, $254,168 in other credit cards, and by purchasing other items.
Brooner purchased a 2004 Lexus R33 sport utility vehicle, on which she made 64 payments totaling $51,813. Brooner also bought 69 pieces of jewelry and accessories from Meierotto’s Midwest Jewelers totaling approximately $29,701 and 82 pieces of jewelry and accessories from Tivol Jewelers totaling approximately $51,984.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI.
Jury Convicts Pittsburg, Kan., Man on Federal Firearms, Drug ChargesRead the Press Release
WICHITA, KAN. - A jury has convicted a Pittsburg, Kan., man on federal firearms and drug charges, U.S. Attorney Barry Grissom said.
James D. Russian, 57, Pittsburg, Kan., was convicted June 17 on one count of unlawful possession of a firearm after a felony conviction, one count of unlawful possession of ammunition after a felony conviction, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of possession with intent to distribute marijuana.
During trial, prosecutors presented evidence that on March 27, 2013, Russian led police on a car chase from Barton County, Mo., to Crawford County, Kan., when they tried to stop him to investigate a report he threatened two people with a machete and a gun. Russian abandoned his car and hid in a wooded area before he was arrested. Investigators found marijuana, firearms and ammunition in his possession. Because of a prior felony conviction, Russian was prohibited by federal law from possessing firearms or ammunition.
Sentencing is set for Sept. 3. The crimes carry the following penalties:
Unlawful possession of a firearm or ammunition following a felony conviction: A maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and not more than life and a fine up to $250,000.
Possession with intent to distribute marijuana: A maximum penalty of five years and a fine up to $250,000.
Grissom commended the Crawford County Sheriff’s Office, the Barton County Sheriff’s Office, the Liberal (Mo.) Police Department, the Pittsburg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Debra Barnett for their work on the case.
Joint ATF, GBI and Athens Clarke County Police Violent Crime Reduction Partnership Leads to Nineteen Defendants' ArrestsRead the Press Release
MACON, GEORGIA – The Bureau of Alcohol, Tobacco, Firearms and Explosive’s (ATF), the Georgia Bureau of Investigation and the Athens Clarke County Police Department (ACCPD) are working jointly on an initiative aimed at the prevention and reduction of violent crime which has resulted in fifteen (15) indictments charging nineteen (19) defendants with a variety of federal firearms and drug offenses announced United States Attorney Michael J. Moore of the Middle District of Georgia. All of these charges are brought within the Athens Division of the Middle District of Georgia.
Those charged in the referenced indictments include the following, to-wit:
Shamier O’Neal Berry, age 21, of Athens, Georgia, was arrested today as a result of an indictment charging distribution of cocaine.
Steven Maurice McKinley, age 22, of Athens, Georgia, was detained today as a result of an indictment charging distribution of methylphenidate and marijuana.
Terrance Jerome Clarke, age 27, of Athens, Georgia, was detained today as a result of an indictment charging two (2) counts of possession of a firearm by a convicted felon, three (3) counts of distribution of drugs and two (2) counts of possession of a firearm in furtherance of a drug trafficking crime.
Cicognac Octavius Rivers, age 25, of Athens, Georgia, was detained today as a result of an indictment charging possession of a firearm by a convicted felon.
Frederick Mitchell, Sr., age 82, of Athens, Georgia, was arrested today as a result of an indictment charging conspiracy to possess with intent to distribute cocaine and distribution of cocaine.
Frederick Mitchell, Jr., age 45, of Athens, Georgia, was arrested today as a result of an indictment charging conspiracy to possess with intent to distribute cocaine and two (2) counts of distribution of cocaine.
Christopher Randall Boss, age 31, of Athens, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Tirrell Deon Bush, age 41, of Athens, Georgia, was arrested today as a result of an indictment charging two (2) counts of distribution of cocaine.
Chasity Caldwell age 33, of Athens, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Dontavous Malcom, age 22, of Athens, Georgia, was arrested today as a result of an indictment charging three (3) counts of distribution of cocaine.
Quometric Quashaun Smith, age 28, of Athens, Georgia, was arrested today as a result of an indictment charging possession of an unregistered firearm and possession of a firearm with an obliterated serial number.
Shammar D. Whitehead, age 26, of Athens, Georgia, was arrested today as a result of an indictment charging distribution of cocaine and possession of a firearm in furtherance of a drug trafficking crime.
Jamie Lee Bowen, age 31, of Maysville, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Royce Van Court, Jr., age 32, of Winder, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Cherry Whatley, age 47, of Winder, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Demarcus Ellison, age 21, of Athens, Georgia, was detained today as a result of an indictment charging two (2) counts of distribution of cocaine.
Xavier Chavez Johnson, age 24, of Athens, Georgia, was arrested today as a result of an indictment charging possession with intent to distribute methamphetamine.
More arrests are expected.
“This initiative demonstrates how committed ATF, along with ACCPD and the GBI, are to reducing violent crime that affects the community. It truly is a joint effort, bringing all resources to a common goal, which is to reduce violent crime,” said ATF Assistant Special Agent in Charge Aldino Ortiz.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The cases were investigated by the ATF and Athens Clarke County Police Department.
Jamaican National Sentenced to 10 Years in Prison for Heroin Distribution ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Sophia Jones, age 40, a Jamaican citizen residing in Montgomery Village, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute heroin and marijuana, possession with intent to distribute heroin, and using a phone in furtherance of drug trafficking. Jones was convicted on January 24, 2014, after a 12-day jury trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police.
According to testimony at her trial, Jones was a member of a drug conspiracy which involved at least one kilogram of heroin and 100 kilograms or more of marijuana. As part of the drug conspiracy, Jones’ co-conspirators transported drugs from Mexico into Texas and then on to Maryland. For example, beginning in late July 2012, co-defendants Amir Ali Faraz and Javier Escobar-Bucerra, traveled from Texas to Maryland with heroin to sell. A marijuana customer of Faraz’ introduced them to Harold Bartrum. Bartrum was only interested in purchasing marijuana, but located a customer for the heroin. Faraz and Escobar-Bucerra sold nine ounces of heroin through Bartrum to this individual and discussed with Bartrum returning to Maryland with marijuana.
In September 2012, Faraz and Escobar-Bucerra traveled to Maryland from Texas with at least one kilogram of white powder heroin and between 9 ounces and 2.2 pounds of black tar heroin. Bartrum again assisted them in selling the heroin, arranging sales to several people, including Cecil McCalla. According to trial testimony, McCalla contacted his niece, Sophia Jones, who agreed to sell the heroin. During the investigation, Jones was intercepted in telephone conversations arranging for the distribution of heroin on at least four occasions. On October 7th and 11th Jones distributed a total of approximately 14 grams of heroin. On October 9th Jones distributed 50 grams of heroin and on October 15th she distributed between100 and 110 grams of heroin. Jones was also intercepted discussing efforts to obtain marijuana and Bartrum’s efforts to get marijuana from the Texas sources (Faraz and Escobar-Bucerra).
Amir Ali Faraz, age 46, of Laredo, Texas, was also convicted after trial and was sentenced to 20 years in prison for conspiracy to distribute heroin and marijuana, possession with intent to distribute heroin, using a phone in furtherance of drug trafficking and interstate travel to promote drug trafficking activities.
Javier Escobar-Bucerra, age 30, of Laredo, Texas; Harold Bartrum, age 44, of Hyattsville, Maryland; and Cecil Rex McCalla, age 50, of Adelphi, Maryland, pleaded guilty to their roles in the conspiracy. Escobar Bucerra and Bartrum were each sentenced to 64 months in prison; and McCalla was sentenced to 140 months in prison.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Prince George’s County Police Department, Maryland State Police and Virginia State Police, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.
Jacksonville Man Indicted for Attempting to Entice A Child to Engage in Illegal Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Jon Christopher Stoune (43, Jacksonville) has been indicted by a federal grand jury and charged with attempted enticement, via the Internet, of a person he believed to be a minor child for the purpose of engaging in illegal sexual activity. If convicted, he faces a mandatory minimum penalty of 10 years, up to life, in federal prison. Stoune was arrested on April 21, 2015, in St. Augustine, Florida and remains in custody on related state charges.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the St. Johns County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Highland Heights man indicted for alleged murder-for-hire plotRead the Press Release
A grand jury indicted a Highland Heights man for charges related to a murder-for-hire plot, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
James A. Martino, 65, was indicted on one count of use of interstate commerce facilities in the commission of murder-for-hire and one count of financing extortionate extensions of credit.
The indictment alleges that between January and June 2013, Martino and another individual conspired to use interstate-commerce facilities with the intent that a murder be committed in exchange for a promise to pay approximately $40,000. It further alleges that Martino advanced approximately $5,000 to another individual for the purposes of making extortionate extensions of credit between November 2014 and January 2015.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases the sentence will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Duncan T. Brown and M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Health Care Fraud Sentence Handed DownRead the Press Release
PHILADELPHIA - Jermaine Hairston, 40, of Philadelphia, PA, was sentenced today to 38 months in prison and three years of supervised release, for health care fraud and aggravated identity theft. Hairston stole the personal identifying information of an emergency room physician and used it to call in fake prescriptions for expensive medications in the names of individuals on medical assistance. Hairston, and others, would pick up the prescription medication, generating a claim to the patient's health insurance, and then sell the medication for cash.
In addition to the prison term, U.S. District Court Judge John R. Padova ordered Hairston to pay restitution in the amount of $13,386.63.
The case was investigated by the Food and Drug Administration's Office of Criminal Investigations, the Federal Bureau of Investigation, and the Department of Health and Human Services Office of Inspector General. It was prosecuted by Assistant United States Attorney Elizabeth Abrams.
Harrisburg Man Sentenced to Five Years Imprisonment on Child Pornography ChargesRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Senior United States District Court Judge Sylvia H. Rambo sentenced Robert K. Gallmann, Jr., age 56, of Harrisburg yesterday to five years in prison for receipt and distribution of child pornography, and ordered the defendant to serve 10 years in supervised release following completion of the sentence.
According to U.S. Attorney Peter Smith, Gallmann was indicted by a federal grand jury in Harrisburg in September 2013. He pled guilty in November 2014 pursuant to a plea agreement.
This case was investigated by the Department of Homeland Security (DHS), Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Georgia Man Sentenced to More Than 21 Years in Prison for Sexually Exploiting Minors in ThailandRead the Press Release
A Georgia man was sentenced today to 262 months in prison for engaging in sexually explicit conduct with minors and producing images and videos of that conduct during trips to Thailand, and transporting the child pornography into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Florence Nakakuni of the District of Hawaii and Executive Associate Director Peter Edge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) made the announcement.
Ronny Lee Waldrip, 64, of Douglasville, Georgia, pleaded guilty on Nov. 7, 2014, before U.S. Magistrate Judge Richard L. Puglisi to one count of sexual exploitation of a minor outside the United States for the purpose of producing visual depictions of such conduct. Senior U.S. District Court Judge Helen Gillmor of the District of Hawaii presided over Waldrip’s sentencing, and also ordered that he pay $45,000 in restitution.
In connection with his guilty plea, Waldrip admitted that he traveled to Thailand on numerous occasions to engage in sexual conduct with minor females. Specifically, he admitted that he traveled to Thailand in 2010 and 2011 for the purpose of inducing and enticing minors into engaging in sexual acts, and to photographing or recording such conduct without the victims’ knowledge or permission.
Waldrip also admitted that, on Feb. 13, 2012, he traveled from Bangkok to Honolulu knowingly transporting a laptop computer containing images and videos of child pornography, including videos of him engaging in sexual acts with minor females, including three victims who were 14 and 15 years old at the time. Waldrip further admitted to using the Internet to distribute the images and videos of the three minor victims to another U.S. citizen whom Waldrip knew was interested in child pornography.
This case was investigated by ICE-HSI in Honolulu and Bangkok. The Royal Thai Police and the Justice Department’s Office of International Affairs also provided assistance. This case was prosecuted by Trial Attorneys Sarah Chang and Michael Grant of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Ron Johnson of the District of Hawaii.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Four Defendants Indicted in Drug Trafficking Ring That Shipped Methamphetamine and Marijuana to Hawaii and New YorkRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against Epati Malauulu, 40, of Suisun City; John Ortiz, 43, of Vallejo; Algernon Tamasoa, 26, of Sacramento; and Francisco Poloai, 43, of Dixon, charging them with conspiracy to distribute methamphetamine, attempted distribution of methamphetamine, distribution of marijuana, and use of a communications facility to facilitate a drug trafficking crime, United States Attorney Benjamin B. Wagner announced.
According to court documents, beginning in August 2014 and continuing to June 4, 2015, the defendants were involved in shipping packages of methamphetamine from Vallejo and elsewhere to Honolulu, Hawaii, using the U.S. Postal Service and FedEx. On at least four occasions, investigators in Hawaii seized packages containing approximately 12 pounds of methamphetamine. On a separate occasion, investigators seized a package containing one pound of marijuana destined for Brooklyn, New York. On June 4, 2015, Malauulu, Ortiz, Tamasoa, and Poloai were arrested. Malauulu, Ortiz, and Tamasoa are in custody.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the IRS-Criminal Investigation, the Solano County Sheriff’s Office, the Fairfield Police Department, the Vallejo Police Department, and the Contra Costa County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
The investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) that was established in 1982. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted, Malauulu, Ortiz, and Tamasoa each face a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Poloai faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Forty Eight Columbia Point Dawgs Charged in Federal SweepRead the Press Release
BOSTON – Over 500 federal, state, and local law enforcement officers carried out arrests and executed more than 30 federal search warrants early this morning as a result of a two-year federal, state, and local wiretap investigation dubbed, “Operation Rising Tide.” Six federal indictments charging 48 leaders, members, and associates of the Columbia Point Dawgs (CPD) with drug trafficking and firearm charges were unsealed today in connection with the sweep.
According to documents filed in court, the CPD, also known on the street as “the Point,” is Boston’s largest and most influential city-wide gang. The criminal organization started in the 1980s in the former Columbia Point Housing Development (now Harbor Point) and, over the years, gang members established drug trafficking crews throughout Boston. Over time, the group also trafficked drugs from Boston to Maine. It is alleged that, during the course of the investigation, the CPD was responsible for the distribution of multiple kilogram quantities of heroin, cocaine, crack cocaine, and oxycodone throughout Boston and Maine.
Court documents allege that the CPD established its dominance in the Boston gang drug distribution business through a pattern of violence and intimidation, and that members of CPD have been responsible for numerous shootings of rival gang members over the years. In particular, in the past year and a half, the CPD has been engaged in a violent gang war with the Greenwood Street Posse, and other gangs aligned with Greenwood, which has resulted in numerous shootings. Law enforcement officers seized 14 firearms during the course of the investigation. On several occasions, guns were seized after investigators heard through court-authorized cellphone wiretaps that an individual was about to engage in a shooting.
Of the 48 persons charged in the indictments, 41 are in custody. The investigation has resulted in the seizure of, among other things: 31 firearms; multiple boxes of ammunition; heroin, cocaine, crack cocaine, oxycodone pills, and marijuana, as well as drug trafficking paraphernalia; 15 vehicles, including a Maserati, a Mercedes Benz, and an Audi; and $1.5 million in cash.
United States Attorney Carmen M. Ortiz; Suffolk County District Attorney Daniel F. Conley; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner Evans; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; John Gibbons, U.S. Marshal of the U.S. Marshals Service, District of Massachusetts; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; and Commissioner Carol Higgins O’Brien of the Massachusetts Department of Correction, made the announcement today. The cases are being prosecuted by Assistant United States Attorneys Emily Cummings and Michael Crowley of Ortiz’s Organized Crime and Gang Unit.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former U.S. Army Contractor in Iraq Sentenced to Federal Prison for Stealing in Excess of $2.6 Million in U.S. Military EquipmentRead the Press Release
In Waco, 47-year-old Stacey B. Hines of Lacey, WA, a former contractor for the U.S. Army employed by Raytheon and assigned to Camp Taji in Iraq as an advisor to the Iraqi Army, was sentenced to 46 months in federal prison for stealing U.S. government property valued at more than $2.6 million and selling it on the black market in Iraq announced Acting United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Walter Smith, Sr., ordered that Hines pay $2,638,736.34 restitution and be placed on supervised release for a period of three years after completing his prison term. Judge Smith sentenced Hines yesterday afternoon.
On April 9, 2015, Hines pleaded guilty to one count of conspiracy to defraud the United States and one count of theft of Government property. By pleading guilty, Hines admitted that from December 2012 to September 2013, he and others conspired to steal eight cargo containers full of U.S. goods from Camp Taji. Those containers were primarily filled with vehicle parts, machine parts, computers and communications equipment. According to court records, in January 2013, Iraqi officials in Baghdad recovered multiple cargo containers full of U.S. Government property while in the possession of two Iraqi citizens. It was determined that those containers were among eight unaccounted for containers from Camp Taji. Furthermore, investigators discovered that Hines agreed to sell the containers and their contents to the two Iraqi citizens for approximately $210,000.
On April 9, 2014, Judge Smith sentenced 34–year-old co-defendant David Rodriguez of Killeen, TX, to 27 months in federal prison for his role in the scheme. During the scheme, Rodriguez was a Department of Defense employee serving as the Director of Logistics at Camp Taji. Rodriguez admittedly helped arranged for the loading of the containers and their transportation off of Camp Taji.
The case resulted from an investigation by the United States Army Criminal Investigation Division (Army CID), Defense Criminal Investigative Service (DCIS) and the Special Inspector General for Iraq Reconstruction (SIGIR). The United States Air Force Office of Special Investigations (USAFOSI), Force Protection Detachment in Iraq assisted in this investigation. This case was prosecuted by Assistant United States Attorney Greg Gloff.
Former Rikers Island Correction Officer Sentenced to Five Years in Prison for Deliberately Ignoring Urgent Medical Needs of Inmate Who DiedRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TERRENCE PENDERGRASS, a former correction officer and captain, was sentenced today in federal court to five years in prison for deliberately ignoring the urgent medical needs of a Rikers Island inmate who had ingested a corrosive disinfectant and later died, in violation of the inmate’s rights under the United States Constitution. The sentence was imposed by U.S. District Judge Ronnie Abrams. PENDERGRASS was convicted of one count of deprivation of rights under color of law in Manhattan federal court on December 17, 2014, after a one-week trial.
U.S. Attorney Bharara said: “Even as we seek to reform and transform Rikers Island –and ensure an environment that protects the constitutional rights of its inmates – it is important that individuals who cruelly trample on those rights be held responsible. Terrence Pendergrass was the Captain on duty, responsible for the well-being of the inmates under his charge, but he stood deaf to Jason Echevarria’s pleas for help as he was succumbing to a toxic chemical, unwilling to help or let others help Echevarria, who died painfully, alone in his cell. Today’s sentence is an important step in our sustained efforts to change the culture on Rikers Island. The sentence is an appropriate punishment for Pendergrass’s crime. Pendergrass now himself will be an inmate and will expect, and be entitled to, better treatment than what he gave Mr. Echevarria.”
According to the Complaint, Indictment, evidence presented at trial, and information presented in connection with sentencing:
Rikers Island is a jail complex, located in the Bronx, New York, maintained by the New York City Department of Correction. At the time of his death, Jason Echevarria was an inmate incarcerated on Rikers Island in the Mental Health Assessment Unit for Infracted Inmates (known as “MHAUII”), a unit housing inmates who had committed infractions while incarcerated and who were identified as needing mental health treatment.
On the afternoon of August 18, 2012, Echevarria swallowed a powerful disinfectant/detergent combination in powder form, commonly referred to as a “soap ball,” used to clean and disinfect cells. Echevarria had been given the soap ball by a new correction officer for the purpose of cleaning Echevarria’s cell following a sewage backup. The soap ball contained, among other things, ammonium chloride, a corrosive chemical that is life-threatening if ingested.
After Echevarria swallowed the soap ball, he began banging on his cell door and asking for help. Echevarria also told a correction officer that he had swallowed a soap ball and needed help. That correction officer in turn informed PENDERGRASS, the captain on duty at that time. As the captain on duty, PENDERGRASS was responsible for arranging for medical treatment for the inmates in his unit. Rather than arrange for that care, however, PENDERGRASS responded that the correction officer should only call on PENDERGRASS if he needed help with the extraction of an inmate from a cell or if there was a dead body. A short time later, the same correction officer told PENDERGRASS that he saw vomit in Echevarria’s cell, and PENDERGRASS responded that Echevarria should be told to “hold it.” Soon after, another correction officer told PENDERGRASS that Echevarria had swallowed a soap ball and that a pharmacy technician had told that officer that Echevarria needed a doctor. Despite what he had been told, and despite going to Echevarria’s cell himself after Echevarria had vomited, PENDERGRASS did not call for medical help. He also ordered an officer who was trying to call for help to hang up the phone.
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PENDERGRASS, 51, of Howard Beach, New York, was convicted after trial of one count of deprivation of rights under color of law. In addition to his prison term, PENDERGRASS was sentenced to one year supervised release, and fined $5,000. He was ordered to surrender by August 18, 2015.
United States Attorney Bharara praised the work of the Federal Bureau of Investigation, and expressed his appreciation for the assistance of the New York City Department of Correction, Investigation Division, the Bronx County District Attorney’s Office, and the New York City Department of Investigation in the investigation of this matter.
This case is being prosecuted jointly by the Office’s Civil Rights Unit and Public Corruption Unit. Assistant U.S. Attorneys Lara K. Eshkenazi and Daniel C. Richenthal are in charge of the prosecution.
Former Political Operative Sentenced to over 11 Years in Prison for Defrauding Louisiana Car DealershipsRead the Press Release
BATON ROUGE, LA – A previously convicted political operative was sentenced yesterday to over 11 years in prison for using his advertising firm to orchestrate a scheme to defraud car dealerships in southeast Louisiana out of over $1,200,000.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Walt Green of the Middle District of Louisiana, and Special Agent in Charge Jerome R. McDuffie of the New Orleans Field Office of IRS-Criminal Investigation (IRS-CI) made the announcement.
Raymond C. Reggie, 52, of Mandeville, Louisiana, pled guilty on October 27, 2014, to all five counts of a 2013 superseding indictment charging him with engaging in a wire fraud scheme to defraud various car dealerships in southeast Louisiana from September 2008 through July 2012. In addition to the prison sentence, U.S. District Court Judge Shelly D. Dick of the Middle District of Louisiana ordered Reggie to serve 2 years of supervised release following imprisonment and to pay more than $4.4 million in restitution and forfeiture, including $968,556 to the Supreme Automotive Group and $249,100 to Super Chevy Dealers of Baton Rouge, a local marketing group. Reggie was immediately remanded into custody following the sentencing.
According to government filings in the case, Reggie owned and operated Nexlevel Group, an advertising firm that assisted car dealerships in obtaining advertising from vendors in Southeast Louisiana. Reggie submitted fictitious advertising expenses for payment to the vendors by the dealerships, falsely representing that such expenses were actually incurred and should be paid to vendors. Once the dealerships issued the checks for the bogus expenses, Reggie deposited the checks into an account he controlled, diverting the funds to his personal use and enjoyment.
Reggie was previously convicted in November 2005 for scheming to defraud three banks in Louisiana in 1999 and 2000. In that case, he pled guilty in the Eastern District of Louisiana and was sentenced to one year in prison, followed by a term of supervised release.
U.S. Attorney Green stated: “The defendant earned every day of the sentence he received yesterday. He stood before the Court as a twice convicted federal felon and seemingly blamed everything and everyone for his wrongdoing, with the glaring exception of himself. Fortunately, justice was guided by the two things the defendant feared most – the law and the facts. I greatly appreciate the tremendous efforts of the prosecutors and agents who handled this important matter, as well as our excellent partnerships with IRS-CI and the Fraud Section.”
Special Agent in Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie, stated: “We are pleased with today’s sentence. Mr. Reggie used his position and reputation in the business community to engage in a sophisticated fraud scheme for personal gain. IRS-CI and the U.S. Attorney’s office remain fully committed to prosecution of those who engage in illegal business practices. Today’s sentence should serve as a reminder that our agency will continue to investigate complex financial crimes and assist in the prosecution of those individuals who engage in such activities.”
This case was investigated by the New Orleans Field Office of IRS-CI. The case is being prosecuted by Assistant United States Attorneys Rene Salomon and Ryan Crosswell of the Middle District of Louisiana and Senior Litigation Counsel Jack Patrick of the Criminal Division’s Fraud Section.
Former Manager of Louisville Medical Office Charged with Health Care Fraud and Identity TheftRead the Press Release
LOUISVILLE, Ky. – Acting U.S. Attorney John E. Kuhn, Jr. today announced the indictment of a former medical office manager on charges of health care fraud and aggravated identity theft.
Kelly Lenning, age 44, of Jefferson County, Kentucky, was charged on June 17, 2015, in a six count federal indictment with scheming to defraud a health care benefit program, in connection with the delivery of and payment for health care benefits, items, and services.
Specifically, while manager of Injury Rehab Specialists of Lou., PLLC a medical practice that treated motor-vehicle-accident patients, Lenning is accused of unlawfully using former employees’ (nurse practitioners) DEA numbers to order controlled substance prescriptions, namely Hydrocodone by directing two individuals to fill Hydrocodone prescriptions between May and August of 2013. The individuals allegedly provided the filled Hydrocodone prescriptions to Lenning, for her own personal use, while she knew the individuals used Humana insurance, to pay for the unlawful prescriptions.
Further, Lenning is charged with using the identification of another person without lawful authority. Lenning is charged with identity theft of two nurse practitioners in relation to the health care fraud.
If convicted at trial, Lenning could be sentenced to no more than 36 years in prison, fined $1.5 million and a serve a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI) and Louisville Metro Police Department.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Little Rock Tax Preparer Sentenced to 46 Months for Preparation of Fraudulent Tax ReturnsRead the Press Release
LITTLE ROCK - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office announced today that United States District Judge Kristine G. Baker sentenced former Little Rock tax preparer Christopher T. Craig, age 48, to 46 months in prison to be followed by one year of supervised release. Craig was also ordered to pay $1,092,177.79 in restitution to the IRS.
On August 25, 2014, Craig pleaded guilty to two counts of aiding and assisting in the preparation of fraudulent income tax returns. According to court documents, Craig, in his capacity as a paid return preparer, prepared false employment tax returns on behalf of other taxpayers for tax years 2010 and 2011. Unknown to the taxpayers, Craig filed the returns in a way that reduced the amount of taxes owed to the IRS by the taxpayers. Craig collected tax payments from the taxpayers for the correct amount of taxes and diverted to himself the difference between the correct amount owed and the amount paid to the IRS. As a result of Craig’s fraudulent conduct, which affected more than 50 victims, the total loss to the government was $1,092,177.79.
“Tax violations have been erroneously referred to as victimless crimes, but it’s the honest law-abiding citizen who is harmed when someone tries to manipulate our nation’s tax system,” Henry said. “The courts have overwhelmingly and consistently shown that you will be held accountable for such actions, and today’s sentencing is a costly reminder.”
This investigation was conducted by IRS Criminal Investigation.
Former Employee of Injury Rehab Specialist and Others Charged in A Conspiracy to Commit Health Care FraudRead the Press Release
Scheme included staging an accident to receive pain medications
LOUISVILLE, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the indictment and arrest of three Louisville co-conspirators charged with a single count of health care fraud.
Cynthia Allen, age 27, Terry Cotton, age 36, and Terry Jenkins, age 36, are charged with conspiring with each other to recruit individuals to participate in a November 27, 2012, staged automobile accident, where one vehicle intentionally struck another vehicle. The object and purpose of the conspiracy was to obtain money and property under the custody and control of health care benefit programs, and to receive controlled substances.
In furtherance of the conspiracy, Allen directed staged, accident passenger participants to seek chiropractic treatment at the clinic at which she was employed. Allen and Cotton then directed passenger participants to seek pain management treatment, including receiving pain medication, at Injury Rehab Specialists of Lou., PLLC, where Allen subsequently became employed. As a result of these acts, among others, automobile insurance companies were billed for and paid for unnecessary treatment at the chiropractic clinic, Injury Rehab Specialists of Lou., PLLC, and other medical providers.
Further, Jenkins is charged with health care fraud for fraudulently submitting a settlement demand for $14,882.29 to Safe Auto Insurance Company for alleged injuries he sustained in a staged automobile accident, and receiving a settlement of $11,000.00.
Further, Terry Cotton is charged with unlawful distribution of a controlled substance. According to the indictment, between June 20, 2012, and continuing through January 17, 2014, Cotton and others, conspired with each other to knowingly and intentionally distribute and dispense, a mixture and substance containing a detectable amount of Hydrocodone, a schedule III controlled substance.
If convicted at trial, the defendants could be sentenced to no more than 20 years in prison, and 3 years of supervised release and fined $500,000.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and is being investigated by the Louisville Metro Police Department and the FBI.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Former DeKalb Detention Officer Charged with Using Excessive Force on County InmatesRead the Press Release
Hamilton Allegedly Tased Inmates Without Justification and Wrote False Reports to Cover Up Abuse
Dwight Hamilton, 51, of Atlanta, Georgia, a former sergeant with the DeKalb County Sheriff's Office, was arraigned today on charges of using excessive force against inmates at the DeKalb County Jail and for writing false reports about the incidents, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney John Horn of the Northern District of Georgia and Special Agent in Charge Britt Johnson of the Federal Bureau of Investigation (FBI).
According to the indictment and other information presented in court, Hamilton worked as a supervisory officer at the DeKalb County jail from 2005 to 2012, where, on two separate dates in January 2012, he used his taser multiple times on inmates without justification. The indictment charges that in both instances, Hamilton’s use of excessive force violated the inmates’ constitutional rights and resulted in bodily injury. The indictment also alleges that, following each of the tasing incidents, Hamilton wrote a false report with the intent to impede an investigation.
Hamilton was arraigned before Magistrate Judge Janet F. King.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI and is being prosecuted by Trial Attorney Christopher Perras of the Civil Rights Division and Assistant U.S. Attorney Brent Alan Gray.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016.
Former Corrections Officer Gets 20 Year Prison Sentence for Violent Home Invasion RobberyRead the Press Release
PHILADELPHIA - Tyreek Styles, 27, of Philadelphia, PA, was sentenced today to 20 years in prison for his role in a conspiracy to commit home invasion robberies. At the time of the crimes, Styles was working as a correctional officer at Curran Fromhold Prison. On September 26, 2014, a federal jury found Styles guilty of conspiracy, Hobbs Acts robbery, and using and carrying a firearm during a crime of violence.
On December 3, 2011, Styles and his co-defendants, Tyrone Styles and Jeramiah Stokes, committed the violent home invasion robbery of the owner of an Upper Darby business. The defendants waited for the owner home to come home and brutally assaulted him in the front yard. They made their way into the home at gunpoint, and forced the business owner=s family to give them money, some of which were business proceeds. Defendant Tyrone Styles fired the gun as the three defendants fled the scene.
In addition to the prison term, U.S. District Court Judge Petrese Tucker ordered three years of supervised release and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Upper Darby Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry and Thomas Zaleski.
Former Catholic Priest SentencedRead the Press Release
SAN JUAN, Puerto Rico – Israel Berríos-Berríos, a former Catholic priest, was sentenced today to 11 years in prison for transporting a minor with the intent to engage criminal sexual conduct, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Berríos-Berríos pled guilty on August 21, 2014.
According to the government’s version of facts, from on or about July 21, 2008, through on or about July 25, 2008, the defendant did knowingly transport an individual, who had not attained the age of 18 years, in interstate and foreign commerce, with the intent to engage in any sexual activity for which a person could be charged with a criminal offense. According to the Government’s version of facts, the defendant did transport a then 15 year-old male minor identified as “John Doe” to the City of Miami, Florida, where together they took a four-day cruise to the Bahamas. While on the cruise the defendant engaged in lewd acts with John Doe, in violation of Title 18, USC, Section 2423(a).
“The USAO for the District of Puerto Rico is committed to taking full advantage of our investigative tools in order to protect our children from sexual predators,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “We commend our team of prosecutors and investigators who worked tirelessly in this case and today achieved this sentence. The public should be reminded to report all inappropriate behavior with children to their local authorities and together, local and federal law enforcement, will see that justice is carried out.”
The case was prosecuted by Assistant U.S. Attorney Marshal D. Morgan, Coordinator of the Project Safe Childhood initiative, and Assistant U.S. Attorney Elba Gorbea.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Florida Lobster Divers & Company Sentenced for Illegal Harvesting ActivitiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracy Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, Sean Morton, Superintendent of the Florida Keys National Marine Sanctuary (FKNMS), and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service (FWS), Miami, announced that Charles Veach, 39, of Coppitt Key, Ryan Veach, 41, formerly of Bay Point, and Tyson Veach, 36, of Stock Island, were sentenced yesterday before Senior U.S. District Judge James Lawrence King.
Charles Veach, Ryan Veach, and Tyson Veach were each sentenced to serve a term of imprisonment of six months, followed by a one year period of supervised release. Additionally, the Court ordered the forfeiture the fishing vessel used in the offense, including its engines, tackle, and appurtenances as instrumentalities of the crimes. Each of the three defendants was also sentenced to pay a $25,000 fine.
Each defendant was sentenced based on their prior guilty pleas to the offense of knowingly transporting, selling, receiving, acquiring, and purchasing lobster violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A), and 3373(d)(2) and Title 18, United States Code, Section 2. Additionally, the corporate entity operated by the defendants, Super Grouper, Inc., was sentenced based on its previous conviction for knowingly engaging and attempting to engage in conduct that involved the offer, sale and intent to purchase spiny lobster in interstate commerce in violation of the laws and regulations of the State of Florida, specifically, Florida Administrative Code, Sections 68B-24.006(10), all in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3372(a)(4), and 3373(d)(1)(B), and Title 18, United States Code, Section 2.
According to court documents and information, Charles Veach was the President and Director of Super Grouper, Inc., and the company was the registered owner of the fishing vessel, the “SUPER GROUPER.”
On August 10, 2009, Charles and Ryan Veach operated the vessel and harvested lobster in the FKNMS. During that voyage, aircraft operated by the Florida Fish & Wildlife Conservation Commission (FWCC) videotaped their diving activities. NOAA Special Agents documented the vessel return to Charles Veach’s home, where a significant amount of spiny lobsters were unloaded and subsequently sold to a wholesale dealer in Key West.
On August 15, 2014, the Super Grouper, operated by Charles and Tyson Veach, was located in the FKNMS by Customs and Border Protection (CBP) aircraft. FWS agents subsequently documented multiple locations where a diver deployed from the Super Grouper and CBP video captured spiny lobster harvesting activities on board the Super Grouper. NOAA Special Agents later witnessed the landing and sale of a part of the harvest at Stock Island to a wholesale dealer. An additional sale was made to a Key West dealer.
On August 19, 2014, NOAA Special Agents observed Charles and Tyson Veach aboard the Super Grouper harvesting lobsters in the FKNMS. During that trip, CBP documented multiple locations at which Tyson Veach engaged in diving activities. A later survey of the locations by the FWS Region 4 Dive Team verified the presence of illegal “casitas,” or artificial habitats, at the sites. Charles and Tyson Veach later landed the vessel and sold the spiny lobsters at a wholesaler dealer in Stock Island.
Creating or harvesting from “casitas,” or artificial habitat, is illegal under state and federal law. As part of their agreement to cooperate, the defendants surrendered a list of all their illegal harvesting sites to the Government, and were required to remove all the sites at their own expense from federal and State waters, prior to sentencing. The defendants were also required to surrender their various lobster and dive endorsements to the State of Florida.
Mr. Ferrer commended the joint investigative efforts of the Special Agents of the NOAA Office of Law Enforcement, and the FWS who led the long-term investigation into the illegal harvesting and sale of spiny lobster known as Operation Quick Peek. Mr. Ferrer also thanked Customs and Border Protection Office of Air & Marine, the FWCC, the crew of the Patrol Vessel Peter Gladding, and the FWS Region 4 Dive Team who also assisted in the investigative effort. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonio Barnes.
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.
Five Men Now Charged in Connection with the Armed Robbery of Two Grocery Stores in CahokiaRead the Press Release
A Federal Grand Jury sitting in East St. Louis has indicted Byron "Josh" Holton, 26, LaMarcus D. Jackson, 28, and Undray C. Webb, 25, with Conspiracy to Interfere with Commerce by Robbery and Interference with Commerce by Robbery, which are both violations of the Hobbs Act, and with Use and Carry of a Firearm During a Crime of Violence in connection with the armed robbery of the Alps Grocery Store that occurred in Cahokia, Illinois on December 11, 2014, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced today. These charges are in addition to the charges Holton, Jackson and Webb were already facing for the January 11, 2015 armed robbery of the Shop ‘n Save in Cahokia. On February 19, 2015, a Federal Grand Jury indicted Holton, Jackson and Webb, along with two others, Durand Harper, 26, and Devante Hodges, 22, for Conspiracy to Interfere with Commerce by Robbery, Interference with Commerce by Robbery, and Use and Carry of a Firearm During a Crime of Violence in connection with the Shop ‘n Save armed robbery.
Documents filed in the U.S. District Court allege that on December 11, 2014, Holton, Jackson and Webb entered the Alps Grocery Store, located at 800 Upper Cahokia Road, in Cahokia, Illinois, masked and armed with three firearms. Holton, Jackson and Webb pointed the firearms at the store employees and demanded money. Holton, Jackson and Webb all took money from two registers and a safe located within the office and fled the store.
The documents further allege that on January 11, 2015, Holton, Jackson, Webb, and Hodges entered the Shop ‘n Save, located at 1028 Camp Jackson Road in Cahokia, Illinois, masked, gloved and armed with four firearms. Holton, Jackson, Webb, and Hodges pointed the firearms at employees and customers within the store. Holton jumped the service counter and demanded the employees place money from the safe into a black book bag while Jackson, Webb and Hodges stood guard at the door with their firearms. Holton, Jackson, Webb and Hodges then left the store and fled the area in a vehicle being driven by Harper.
If convicted of any of the Hobbs Act violations, the defendants all face a term in prison of up to 20 years on each count, a fine of up to $250,000, or both, and a term of supervised release of up to 3 years. If convicted of the offense of Use of a Firearm During a Crime of Violence in connection with the armed robbery of the Shop ‘n Save, all five defendants face a minimum term in prison of 7 years up to a maximum term of Life, consecutive to, meaning in addition to, any term of imprisonment imposed on the Hobbs Act violations, as well as a fine of up to $250,000 and a term of supervised release of up to 5 years. Additionally, if Holton, Jackson and Webb are convicted of a second offense of Use of a Firearm During a Crime of Violence in connection with the armed robbery of Alps Grocery Store, the three face a minimum term in prison of 25 years up to a maximum of Life, consecutive to the term of imprisonment imposed on all other counts of conviction.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The case is being investigated by the Cahokia Police Department, the Sauget Police Department and the Federal Bureau of Investigation as part of the Metro East Armed Robbery Initiative. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Federal, state authorities disrupt Pennsylvania to West Virginia heroin trafficking networkRead the Press Release
WHEELING, WEST VIRGINIA – Multiple individuals were arrested today in connection with a multi-state heroin trafficking operation, United States Attorney William J. Ihlenfeld, II, and Marshall County Prosecuting Attorney Rhonda Wade announced.
Christopher T. Gyorko, 30, of Pittsburgh, Pennsylvania, is alleged to have orchestrated and managed a drug trafficking operation in which quantities of heroin were transported across state lines from Pittsburgh, Pennsylvania into Ohio and Marshall Counties in West Virginia, as well as locations in the state of Ohio, for redistribution and sale. Gyorko has been named in an 18-count federal indictment, along with Jeff R. Andlinger, 34, of Benwood, West Virginia, John D. McKee, 30, Joseph P. McKee, 25, Doug Nolte, 35, and George L. LaShare, 34, all of Wheeling.
Additionally, George N. Sidiropolis, 35, of McMechen, West Virginia, was charged in a one-count federal Information with “Conspiracy to Distribute Heroin.”
All six defendants named in the indictment are charged with “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.” They each face up to 20 years in prison and a fine of up to $1,000,000.Andlinger is further charged with:
• Three counts of “Use of a Telephone to Facilitate the Distribution of Heroin.” He faces up to four years in prison and a fine of up to $250,000 on each count,
• One count of “Aiding and Abetting the Distribution of Heroin Within 1,000 Feet of a Protected Location,” for which he faces between one and forty years in prison and a fine of up to $2,000,000,
• One count of “Distribution of Heroin Within 1,000 Feet of a Protected Location,” for which he faces between one and forty years in prison and a fine of up to $2,000,000, and
• One count of “Distribution of Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.
Nolte is further charged with:
• Two counts of “Use of a Telephone to Facilitate the Distribution of Heroin.” He faces up to four years in prison and a fine of up to $250,000 on each count,
• Two counts of “Distribution of Heroin Within 1,000 Feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000 on each count, and
• One count of “Distribution of Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.
LaShare is further charged with:
• Three counts of “Use of a Telephone to Facilitate the Distribution of Heroin.” He faces up to four years in prison and a fine of up to $250,000 on each count,
• Two counts of “Aiding and Abetting the Distribution of Heroin Within 1,000 Feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000 on each count, and
• One count of “Aiding and Abetting the Distribution of Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.
McKee is further charged with:
• Two counts of “Aiding and Abetting the Distribution of Heroin Within 1,000 Feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000 on each count, and
• One count of “Aiding and Abetting the Distribution of Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.
The following individuals have been charged in state court in connection with the heroin trafficking operation:
• Jonathan M. Novick, 24, of Glendale, West Virginia faces one count of “Delivery of a Controlled Substance – Heroin,” and one count of “Conspiracy to Distribute a Controlled Substance,”
• William A. Novick, 33, of McMechen, West Virginia, faces one count of “Delivery of a Controlled Substance – Heroin,” and one count of “Conspiracy to Distribute a Controlled Substance,”
• Madelyn A. Dziorney, 21, of Moundsville, West Virginia, faces one count of “Delivery of a Controlled Substance – Heroin,”
• Rosa I. Ruskin, 21, of Moundsville, West Virginia, faces one count of “Delivery of a Controlled Substance – Heroin,”
• Steven E. Holmes, 25, of Cameron, West Virginia, faces three counts of “Conspiracy to Distribute a Controlled Substance,” and three counts of “Delivery of a Controlled Substance – Heroin,” and
• Terry P. Davis, 33, of McMechen, West Virginia was previously charged with one count of “Introduction of a Controlled Substance into a Regional Jail – Heroin,” and “Possession of a Controlled Substance with Intent to Distribute – Heroin.”Assistant U.S. Attorney Stephen Vogrin is prosecuting the defendants charged in federal court. Marshall County Prosecuting Attorney Rhonda Wade is prosecuting the defendants charged in state court. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, is leading the Investigation. The Task Force is comprised of officers and agents from the Marshall County Sheriff’s Office, Moundsville Police Department, the West Virginia State Police, and the Drug Enforcement Administration.
The federal and state charges announced today are merely accusations, and all defendants are presumed innocent unless and until proven guilty.
Federal Racketeering Indictment Targets Mexican Mafia-Orchestrated Coalition of Three Latino Street Gangs in Northeast Los AngelesRead the Press Release
LOS ANGELES – Federal, state and local authorities this morning arrested 15 defendants named in a federal racketeering indictment that describes the development and implementation of a coalition of three criminal street gangs in the Northeast Los Angeles area that were brought together under a truce ordered by a Mexican Mafia member for the purpose of controlling criminal activity in the neighborhoods where the trio of gangs operated
Unlike previous federal racketeering cases in this region that targeted long-established street gangs, the indictment that was returned yesterday by a federal grand jury outlines how Mexican Mafia member Arnold Gonzales created a criminal enterprise by unifying three gangs that had traditionally been rivals. According to the 27-count indictment, the “peace treaty” imposed by Arnold Gonzales brought together the Frogtown, Toonerville and Rascals gangs, which then worked “in concert to control the narcotics trafficking and other illicit activities committed in their territories,” which run along the Los Angeles River from Elysian Park nearly to Burbank.
The indictment alleges a conspiracy to violate the Racketeer-Influenced and Corrupt Organizations Act (RICO) and accuses a total of 22 defendants of being “members and associates of a criminal organization engaged in, amongst other things, conspiracy to traffic in narcotics, narcotics trafficking, extortion, and crimes of violence, including conspiracy to commit murder, murder, attempted murder, and robbery.”
Exploiting a power vacuum created by previous federal RICO cases targeting Northeast Los Angeles gangs and the Mexican Mafia members who controlled them, Arnold Gonzales allegedly assumed control of the three street gangs in the fall of 2010. Because he was incarcerated in Pelican Bay State Prison after being convicted of murder, Arnold Gonzales anointed another Frogtown member – Jorge Grey, also known as “Bouncer” – to be his emissary on the streets, according to the indictment. Acting as the so-called shotcaller, Grey convened a meeting of representatives of Northeast Los Angeles gangs in September 2010. At this meeting, Grey informed the gang representatives that he was Arnold Gonzales’s “mouthpiece” and that he had orders to broker a truce among the rival gangs of Frogtown, Toonerville, and the Rascals so that they could work together to control illegal activities in the area on behalf of, and for the benefit of, Arnold Gonzales.
The investigation showed that nearly two years after its formation, the criminal organization had achieved its goal of unifying the three longstanding rival gangs into a single criminal enterprise. Less than two years after Arnold Gonzales imposed the truce on the gangs, one of the Toonerville shot-callers, Manuel Vallejo, was talking about the “United Nations,” “New World Order” and “United Neighborhoods,” which he said was the “game plan.” Just a few months ago, Vallejo was boasting about the execution of that “game plan,” noting that he was part of something that had ended more than 50 years of fighting between Frogtown, Toonerville and the Rascals.
“For the past two decades, federal authorities have been fighting the influence of the Mexican Mafia both inside prison facilities and on the streets of Southern California,” said Assistant United States Attorney Robert Dugdale, Chief of the office’s Criminal Division. “We sought to ensure that being a shotcaller in such a gang is a job whose only reward will be many, many years in federal custody. The indictment announced today is the latest salvo in this battle, and we will continue our crackdown on criminal organizations like the Mexican Mafia and street gangs that do its bidding as long as they threaten our communities.”
The RICO indictment targeting the Arnold Gonzales Organization is the result of Operation “Gig ‘em,” which was a 2½-year investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Violent Crime Impact Team; the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit; the Glendale Police Department; and the Los Angeles Police Department.
This morning, authorities arrested 14 of the defendants named in the RICO indictment. Four other defendants were already in custody, and law enforcement continues to search for three defendants, including Grey. (Two other individuals named in separate one-defendant, one-count drug trafficking indictments were also arrested this morning.)
ATF Special Agent in Charge Carlos A. Canino said, “Many of these defendants are previously convicted felons. We will continue to send the message, continued engagement in gang violence and violent crime has no place in our community.”
The investigation centered on Arnold Gonzales taking control of the three gangs; exercising his authority through Grey and his criminal associates; and generating revenue through extortion, specifically the imposition of taxes on the gangs and others who distributed narcotics in the territory controlled by the criminal enterprise. Members of the racketeering conspiracy allegedly implemented the orders of Arnold Gonzales, imposed discipline on those who attempted to violate the orders or contest the power of the enterprise, and collected firearms that were used to enforce their authority. The indictment details numerous transactions involving narcotics and firearms, and also contains charges related to two shootings, one allegedly perpetrated by Vallejo against a fellow Toonerville gang member whom he believed was attempting to wrest control of the enterprise, and another shooting of a neighborhood drug dealer ordered by Grey due to his failure to pay “taxes” to Arnold Gonzales.
“There is a path of lives ruined, and families devastated by the violence, extortion, and addictions that were created by this gang alliance,” said Bill Kunz, Special Agent in Charge, California Department of Corrections and Rehabilitation, Office of Correctional Safety. “So, those who join with the Mexican mafia should be on notice: law enforcement is also banded together. We will track you down, and take you down.”
Glendale Police Chief Chief Rob Castro stated, “The Glendale Police Department recognizes that gang crimes have no borders and the City of Glendale is not immune to the impact of gang violence. Our participation in a multi-jurisdictional operation such as this ensures the safety of our community.”
Members of the organization also implemented plans to expand operations into the greater Lancaster, California area, where they hoped to engage in drug trafficking and collect “taxes” on behalf of, and for the benefit, of Arnold Gonzales.
As part of the scheme, several participants in the enterprise allegedly deposited money into Arnold Gonzales’s prison account, with one individual depositing over $133,000 on her own.
The indictment alleges that Grey and other members of the enterprise engaged in narcotics and weapons transactions at Homeboy Industries, and one defendant allegedly planned to use Homeboy Industries as an “alibi” if he was accused of associating with other gang members in violation of a gang injunction.
In addition to the RICO charge in the indictment, various defendants are charged with narcotics and weapons offenses, including, in one instance, the possession of a machinegun.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If they are convicted of charges contained in the indictment, all of the defendants would face potential sentences of decades in federal prison.
Release No. 15-062
Federal Operation Convicts Nine Montanans of More Than Half a Million Dollars in Social Security FraudRead the Press Release
HELENA – Montana U.S. Attorney Michael Cotter announced today the culmination of a federal operation that found nine Montanans engaged in Social Security fraud. Dubbed “Operation Save our Social Security,” Operation S.O.S. uncovered approximately a half-million dollars in fraudulent payments to individuals in Montana, which occurred when the individuals provided false information or made misrepresentations on their paperwork for Supplemental Security Income (SSI), which also impacts eligibility for other federal assistance. In total, the operation uncovered approximately $390,000 in Social Security fraud, $107,288 in Medicaid fraud, and $34,500 in Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) fraud. The individuals have been ordered to pay back the money they stole, including the final individual, Caroline Bighair, who was sentenced today to pay back $23,424 and to three years of supervised release. One recipient of the federal benefits agreed to pay back the money under an agreement with the U.S. Attorney’s Office due to personal circumstances.
“Supplemental Security Income relies on the truthfulness and personal integrity of the people who apply for and receive it,” said Mike Cotter, Montana U.S. Attorney. “When people get greedy and lie to the government in order to get more money than they deserve, the people who actually qualify and need the money to survive are harmed.”
“These individuals repeatedly lied, cheated and stole from some of the most vulnerable residents of Montana,” said Wilbert Craig, Special Agent in Charge of the Social Security Administration/Office of Inspector General Denver Field Division. “In many instances, the victims were their own family and left to fend for themselves. These are real crimes, impacting real lives, and extending beyond the victims to every U.S. taxpayer. I am proud of our combined efforts with the U.S. Attorney’s Office.”
Known as Supplemental Security Income (SSI), the money is drawn from general federal tax revenue and is designed to help aged, blind and disabled citizens who have little or no income. SSI provides cash to meet basic needs for food, clothing and shelter. Applications for Supplemental Security Income also impact eligibility for other federal monies, including Medicaid, survivor benefits, and Supplemental Nutrition Assistance Program (SNAP), also known as food stamps.
The following individuals were convicted as part of the operation: Caroline Big Hair, Vicky Blair, Tonya Brackett, Meghan Gontz, Nelson Grandchamp, Earline Pritchard, Georgia Wetsit, Bonnie Wingo. Another individual agreed to pay back the money through a diversion program due to personal circumstance. Examples of fraud include misrepresentations about whether a recipient was married, the composition of a recipient’s household, and how much money the recipient was making as income. Those misrepresentations directly impacted whether or not the individuals were eligible to receive federal money which, in some cases, was in excess of $1,000 per month from the federal government.
The operation was a collaborative effort between the Montana U.S. Attorney’s Office, the Social Security Administration, and the Office of Inspector General. If you suspect that someone is fraudulently receiving federal money, call to report it at 1-800-269-0271 or log on to http://oig.ssa.gov/report.
Eugene Felon Sentenced to 10 Years in Federal Prison for Possessing FirearmsRead the Press Release
EUGENE, Ore. – On June 16, 2015, Billy Jess Barnard, 30, of Eugene, Oregon, was sentenced by U.S. District Judge Michael McShane to ten years in federal prison for unlawful possession of firearms. Upon his release from prison, Barnard will be on supervised release for three years.
On December 10, 2013, Eugene Police Department officers arrested Barnard in a stolen vehicle and found him with two handguns. A search of his phones revealed photos of Barnard holding multiple firearms, including an AK-47 type pistol and a shotgun. Barnard has prior felony convictions for, among other things, fleeing or attempting to elude police and burglary in the second degree.
In addition to his federal case, the Lane County District Attorney’s Office is prosecuting Barnard in two separate criminal cases arising from other events in 2013.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eugene Police Department, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik, with the assistance of Lane County Deputy District Attorneys Paul Graebner and Katherine Green.
Dunkirk Man Sentenced on Child Pornography 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 Shane Taylor, 43, of Dunkirk, NY, who was convicted of possession of child pornography, was sentenced to 120 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Carol G. Bridge, who handled the case, stated that on July 18, 2011, law enforcement officers executed a search warrant at the defendant’s residence on Dove St. in Dunkirk. Officers seized a computer and a shotgun from Taylor’s room. An analysis determined that the computer contained over 3000 images of child pornography, many depicting pre-pubescent children and images of violence.
The sentencing is the culmination of an investigation by Immigration and Customers Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
Dulce, N.M., Man Pleads Guilty to Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – McQuade Quintana, 28, of Dulce, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to violating the Sex Offender Registration and Notification Act (SORNA). The guilty plea was announced by U.S. Attorney Damon P. Martinez and U.S. Marshall Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Quintana was arrested on Nov. 25, 2014, on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. On Dec. 16, 2014, Quintana was indicted for failing to update his registration between Oct. 10, 2014 and Nov. 25, 2014, in Bernalillo County, N.M.
According to court filings, Quintana was convicted of aggravated sexual abuse of a child in Jan. 2006. On Sept 30, 2010, Quintana registered as a sex offender in Bernalillo County and agreed to notify the sheriff of the county to which he moved if he relocated outside of the county. Quintana last registered as a sex offender on March 16, 2011, in Rio Arriba County, and subsequently failed to notify the New Mexico Department of Public Safety or the Bernalillo County Sheriff’s Office that he had moved or to update his sex offender registration as required by SORNA.
Today, Quintana pled guilty to a felony information and admitted that between Oct. 10, 2014 and Nov. 25, 2014, he failed to register as a sex offender in Bernalillo County. Quintana also admitted that on Sept. 5, 2014, he was approved to reside at a residential reentry program in Albuquerque by the U.S. Probation Office and that he left the program without permission on Oct. 10, 2014.
At sentencing, Quintana faces a statutory maximum of ten years in federal prison followed by not less than three years of supervised release. Quintana will also be required to register as a sex offender following his term of incarceration.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
District Man Sentenced to 12 Years in Prison for Sexually Abusing Two ChildrenRead the Press Release
WASHINGTON – James Izlar, 37, of Washington, D.C., was sentenced today to 12 years in prison on charges stemming from the sexual abuse of two girls at a residence where they were staying in Southeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Izlar pled guilty in February 2015, in the Superior Court of the District of Columbia, to two counts of second-degree child sexual abuse. The plea, which was contingent upon the Court’s approval, called for a prison sentence between 9 ½ and 12 years. The Honorable Jennifer Anderson accepted the plea today. Upon completion of his prison term, Izlar will be placed on seven years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, Izlar was on supervised release for a previous child sexual abuse conviction involving a 2005 attack on a 13-year-old girl. In June 2013, he removed his GPS tracking device and began living in a house where the two girls, then 6 and 9, were temporarily residing. The people in the house did not know that Izlar was a convicted sex offender. Soon thereafter, Izlar began inappropriately touching the girls, who reported the abuse to a family member. Police were notified, leading to Izlar’s arrest.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the detectives of the Metropolitan Police Department’s Youth Investigations Division. He also acknowledged those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan; former Victim/Witness Advocate Melissa Milam; Child Forensic Interview Specialists Karen Giannakoulias and Tracy Owusu, and Paralegal Specialist Joyce Arthur. Finally, he expressed appreciation for the work of Assistant U.S. Attorney John L. Hill, who prosecuted the case.
District Man Pleads Guilty to Stealing Nearly $200,000 in Federal Retirement BenefitsRead the Press Release
WASHINGTON – Harry Van Jackson, 69, of Washington, D.C., pled guilty today to a federal charge stemming from his theft of $199,915 of his deceased father’s retirement benefits, announced Acting U.S. Attorney Vincent H. Cohen, Jr., and Patrick E. McFarland, Inspector General for the Office of Personnel Management (OPM).
Jackson pled guilty in the U.S. District Court for the District of Columbia to theft from the government. Under federal sentencing guidelines, the plea carries a potential term of imprisonment of 12 to 18 months. As part of his plea agreement, Jackson agreed to pay $199,915 in restitution. He also could be subject to the same amount in forfeiture, and other financial penalties. The Honorable Beryl A. Howell set sentencing for Sept. 11, 2015.
According to the government’s factual proffer, OPM, among other duties, manages pension benefits for retired employees of the United States government. The Civil Service Retirement System (CSRS) is a retirement system covering federal employees who entered covered federal service before Jan. 1, 1987. Upon retirement from civil service, the federal employees covered by CSRS become CSRS annuitants and are entitled to CSRS benefits throughout their lifetimes. In addition, a CSRS annuitant has the option to elect a survivor benefit for his/her spouse; if selected, a spousal benefit allowed for the annuitant’s surviving spouse to continue to receive a reduced amount of benefits throughout the spouse’s lifetime.
There is no benefit under CSRS for surviving children older than 18 (unless the child was incapable of self-support due to a mental or physical disability that existed prior to age 18).
Jackson’s father retired from the U.S. Government on July 10, 1981, after 38 years of federal service. At the time of his death, on Aug. 23, 2004, Mr. Jackson’s father was receiving approximately $1,400 per month in annuity benefits from CSRS; this amount increased due to cost of living adjustments to approximately $1,770 per month by October 2014. These benefits were automatically deposited into a bank account solely in the father’s name.
Jackson was not entitled to any of his father’s benefits under CSRS, in that he was not a retired federal employee or spouse, he was not a surviving child younger than 18 when his father died, and did not suffer from a mental or physical disability that existed prior to the age of 18.
In October 2014, OPM sent an Address Verification Letter to the attention of Jackson’s father to his last known address in the District of Columbia, requesting confirmation that the annuity payments were going to the right person at the correct address. The letter enclosed an Annuitant’s Response form, which provided a section for confirmation from the CSRS annuitant, and a section for a response if the annuitant was deceased. A short time later, OPM received a response, purportedly signed by the father, confirming the annuity and Social Security number, and other information. This section for the deceased annuitant was not completed.
From the date of Jackson’s father’s death to October 2014, CSRS annuity payments continued to be made to the father’s bank account, totaling approximately $199,915. Jackson used this money, by accessing ATMs and by writing checks signing his father’s signature.
In announcing the plea, Acting U.S. Attorney Cohen and Inspector General McFarland expressed appreciation for the work performed by OPM’s Office of Inspector General. They also acknowledged the efforts of Paralegal Specialist Corinne Kleinman, Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Detroit man pleads guilty to federal heroin traffickingRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who assisted in the sale of heroin in Huntington in 2013 and 2014 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Ramone L. Wells, 20, entered a guilty plea in federal court in Huntington to conspiracy to distribute heroin.
From February of 2013 to December 8, 2014, Wells worked with multiple associates to distribute heroin in Huntington that had been transported from Detroit. Wells supervised street level heroin dealers in Huntington and collected cash proceeds from the heroin sales. Wells also sold heroin directly. Wells and his associates used multiple Huntington residences to store, prepare and distribute heroin, including a home at 403 Homestead Place.
On December 6, 2014, a United States Postal Inspector intercepted a package mailed to the Homestead Place address that contained approximately 230 grams of heroin. Agents delivered the package that day and after it was accepted, executed a search warrant at the residence. During the search, agents seized heroin, paraphernalia used to package and distribute heroin, cash, and four guns.
Wells faces up to 20 years in federal prison, and is scheduled to be sentenced on September 21, 2015.
The Huntington FBI Drug Task Force, United States Postal Service, West Virginia State Police and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This 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.
Derby Line Woman Pleads Guilty to Fraud and False Tax FilingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Amy C. Fletcher, age 44, of Derby Line, Vermont, pleaded guilty yesterday in federal court in Brattleboro to committing wire fraud and filing a false tax return.
Fletcher admitted in court that while working for Derby Line Ambulance (“DLA”) during 2009-2012, she embezzled money from the company to pay personal expenses. She also admitted filing a false 2011 tax return with the Internal Revenue Service.
Fletcher admitted engaging “in an ongoing practice of diverting funds from DLA for personal use, paying personal credit cards and home and car loans.” She admitted drawing over 400 checks on DLA’s business accounts, making them payable to herself and others for her benefit. She admitted that such transfers paid down outstanding balances on her 14 credit cards. The government stated at the change of plea hearing that, during the time period in question, DLA had business receipts of over $1.5 million, out of which Fletcher diverted over $250,000. Fletcher’s counsel responded that the total amount of stolen funds might be contested at sentencing.
Fletcher also admitted filing a false IRS 1040 tax return in 2011, understating her
income and her taxes due. Her filing was accompanied by a written declaration that it was accurate, while she knew it was false.U.S. District Court Judge J. Garvan Murtha ordered a presentence investigation, and scheduled a sentencing hearing on December 17, 2015.
The case was investigated by the Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigation Division. The maximum possible penalty for the two offenses is 20 years in prison for the wire fraud, and three years for the false tax filing. Fletcher is represented by attorney David Sleigh of St. Johnsbury. The United States is represented by Assistant U.S. Attorney William Darrow.
Daviess County Medical Physician Charged with Importing and Billing Medicaid for Misbranded and Unapproved DrugsRead the Press Release
Allegedly Billed Medicaid $68,171.34 for IUD’s Not Approved For Use By The FDA
OWENSBORO, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the single charge of misbranded and unapproved drugs, against a Daviess County, Kentucky medical physician.
Randall Edward King, MD, age 56, of Women’s Healthcare, located in Owensboro, Kentucky, was charged by an information in Owensboro, on June 17, 2015.
King is accused of importing intrauterine devices (IUDs) from the United Kingdom, which were designed for use in Turkey, and for billing Medicaid $68,171.34 for the IUDs which were not approved for use by the U.S. Food and Drug Administration (FDA). These IUDs are considered misbranded because their labeling was not in the English language, rendering those labels unlikely to be read and understood by the ordinary individual under customary conditions of purchase and use.
If convicted at trial, King could be sentenced to no more than one year in prison, ordered to pay a fine of $1,000 and to serve a one year period of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigate by the FDA – Office of Criminal Investigations.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Crownpoint Man Sentenced to Prison for Federal Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Tomson Largo, 26, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 90 months in prison followed by a lifetime of supervised release for his sexual abuse conviction. Largo will be required to register as a sex offender after his term of incarceration
Largo was arrested on Oct. 29, 2014, on a three-count indictment charging him with attempted aggravated sexual abuse, aggravated sexual abuse, and abusive sexual contact. The indictment alleged that Largo committed the offenses on multiple occasions between July 2011 and March 2014, in McKinley County, N.M., within the Navajo Indian Reservation.
On March 17, 2015, Largo pled guilty to all three counts of the indictment. In entering his guilty plea, Largo admitted that between July 1, 2011 and Aug. 31, 2011, he attempted to sexually abuse the victim, an Indian woman, while she was sleeping with her two children. He further admitted that in Dec. 2011, he used force to sexually assault the victim, and in March 2014, he assaulted the victim by shoving his hands down her pants and touching her between the legs. Largo admitted committing each of the three crimes at a residence in Crownpoint.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and the Gallup office of the FBI and was prosecuted by Assistant U.S. Attorney Kristopher N. Houghton.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Crafton Man Pleads Guilty to Distributing Child PornographyRead the Press Release
PITTSBURGH – An Allegheny County pleaded guilty in federal court to a charge of distribution of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Michael Leneweaver, 49, of Crafton, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, on or about Sept. 5, 2013, Leneweaver distributed videos and images containing material depicting the sexual exploitation of minors.
Judge Hornak scheduled sentencing for Oct. 14, 2015, at 2 p.m. The law provides for a maximum total sentence of 90 years in prison, a fine of $1,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County District Attorney’s Office conducted the investigation that led to the prosecution of Leneweaver.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Covenant Hospice Inc. to Pay $10.1 Million for Overcharging Medicare, Tricare and Medicaid for Hospice ServicesRead the Press Release
On June 18, Covenant Hospice Inc. agreed to pay $10,149,374 to reimburse the government for alleged overbilling of Medicare, Tricare and Medicaid for hospice services, the Department of Justice announced today. Covenant Hospice Inc. is a non-profit hospice care provider which operates in Southern Alabama and the Florida Panhandle.
“The hospice benefits provided by federal health care programs are intended to provide comfort and care to patients nearing the end of life,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to ensure that these benefits are used for their intended purposes.”
The Medicare, Tricare and Medicaid hospice benefits are available for patients who have a life expectancy of six months or less if their disease runs its normal course. Patients admitted to a hospice stop receiving care to cure their illnesses and instead receive medical care focused on providing them with relief from the symptoms, pain and stress of a terminal illness.
Medicare, Tricare and Alabama and Florida Medicaid reimburse for four different levels of hospice care: routine home care, continuous home care, inpatient respite care and general inpatient care. The routine home care level is the lowest reimbursement rate and the highest reimbursement rate paid by the federal health care programs is for general inpatient care. The level of care provided to a patient is subject to change based upon a variety of factors, including the patient’s condition and needs, and the availability of family members or other caregivers to meet those needs. The reimbursement for general inpatient care is greater than that provided for routine home care based upon the expectation that patients requiring the former level of care have more acute medical and psychosocial needs that must be provided in an inpatient setting and are more costly to treat. It is the responsibility of the hospice provider to ensure that a patient’s medical record contains the appropriate documentation to support the level of hospice care that is billed.
“Careful and correct claims for reimbursement from critical federal health care programs are essential to the health of our economy,” said U.S. Attorney Pamela C. Marsh of the Northern District of Florida. “Those public servants who worked hard to investigate the conduct and obtain this settlement deserve our deepest gratitude. We will continue our efforts to ensure that federal dollars intended for compassionate care and legitimate patient needs are protected.”
Today’s settlement resolves allegations that between Jan. 1, 2009, and Dec. 31, 2010, Covenant Hospice Inc. improperly submitted hospice claims for general inpatient care that should have been billed at the routine home care level for Medicare, Tricare and Medicaid patients. The government alleged that Covenant Hospice Inc.’s medical records did not support the medical necessity of the general inpatient care.
The federal government will recover $9,597,118.44 for Covenant Hospice Inc.’s overbilling to Medicare, Tricare and Medicaid, and Alabama and Florida will collectively recover $552,255.56 as a result of overbilling of their respective Medicaid programs. The Medicaid program is jointly funded by the federal and state governments.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Northern District of Florida, the Department of Health and Human Services’ Office of the Inspector General, the Defense Health Agency of the U.S. Department of Defense, the Alabama Attorney General’s Office and the Florida Attorney General’s Office.
Convicted Felon Found Guilty of Possessing Firearm in Facebook PhotosRead the Press Release
KNOXVILLE, Tenn. – Following a two-day trial in U.S. District Court, on June 17, 2015, Malik First Born Allah Farrad, a.k.a. Marvin Maurice Buckles, 41, of Johnson City, Tenn., was convicted of being a felon in possession of a firearm. Sentencing is set for 10:00 a.m., Oct. 29, 2015.
Farrad faces a baseline punishment of a maximum of 10 years in prison. However, possible sentencing enhancements could result in a mandatory minimum term of 15 years up to life in prison. There is no parole in the federal system.
In the fall of 2013, officers with the Johnson City Police Department began an investigation into suspected illicit conduct by Farrad. In so doing, law enforcement examined his use of social media, specifically, Facebook. Investigators found that in October 2013, Farrad uploaded a photograph of three handguns placed atop the toilet seat in his bathroom. Having previously sustained numerous felony convictions for drug, gun, and violent offense, it was illegal for him to be in possession of such weapons.
Subsequently, investigators, working in conjunction with the Federal Bureau of Investigation (FBI), obtained a search warrant for the entirety of Farrad’s Facebook account. Once executed, law enforcement discovered a variety of photographs showing him holding, posing with, and displaying a Springfield, Model XD, .45 caliber, semiautomatic pistol. The pictures were taken from inside Farrad’s bathroom, and were uploaded in quick succession in October 2013.
At trial, Corporal Kenny Hinkle of the Morristown Police Department testified in great detail as to the distinguishing characteristics of the firearm seen in the seized Facebook photos. Those characteristics both confirmed the identity of the firearm, and dispelled any possibility of it being a toy, fake, replica, or imitation.
This investigation was the product of a partnership between the Johnson City Police Department and the FBI. Assistant United States Attorney Nick Regalia represented the United States.
This case was brought as part of Project Safe Neighborhoods (“PSN”), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
This case was also brought as part of the Safe Streets Violent Crimes Initiative, a program which combines the efforts of federal, state, and local agencies in order to stop violent felons from endangering our communities.
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Colorado Woman Charged with Wire Fraud Conspiracy for Operating $6.8 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – A criminal bill of information was filed today in federal court, charging Kristine Louise Johnson, 60, of Aurora, Colorado, with wire fraud conspiracy for operating a $6.8 million Ponzi scheme that defrauded more than 10,000 investor victims, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.
Robert W. Rolin, Jr. Acting Special Agent in Charge of the United States Secret Service, Charlotte Field Office joins Acting U.S. Attorney Rose in making today’s announcement.
According to filed court documents, from about April 2014 to February 2015, Johnson and her conspirators ran the investment scheme through a sham internet company, “The Achieve Community” (TAC). To induce victims to invest their money, the conspirators falsely claimed the investors would receive a bogus 700% return on their investment. According to court records, the victims’ money was never invested. Rather, TAC operated as a “Ponzi” scheme, and the conspirators used monies from later victim-investors to pay fraudulent “returns” to earlier ones and to enrich themselves. Johnson and her conspirators defrauded over 10,000 investors both in the Charlotte-area and worldwide, causing the victims to sustain losses totaling millions of dollars.
Court records show Johnson served as Chief Financial Officer (CFO) and managed TAC’s day-to-day operations, including managing company bank accounts and producing marketing materials. According to filed documents, Johnson falsely told potential participants that TAC was not a “Pyramid Scheme,” when, in fact, TAC operated solely as a pyramid scheme and initial investors were paid with later investors’ money. Johnson also falsely told potential investors that the “more products purchased, the more people move through the matrix and get paid.” According to filed documents, there were no actual products and early victim-investors only received Ponzi-like payments, regardless of the purchase of any products. Johnson and her conspirators also falsely promoted TAC as a “lifetime income plan” with “limitless” returns when, in reality, the Ponzi scheme could only operate with ever increasing infusions of new victim-investor cash.
As described in court documents, Johnson and her conspirators falsely represented that TAC was able to sustain and continue making payouts through the use of what they called a “Triple Algorithm” and a “3D Matrix,” which were so complex that they could not be explained in writing. In reality, no such business model existed and the only revenue for the scheme came from victim-investors. According to court records, in order to sustain the scheme, Johnson and her conspirators encouraged investors to “re-purchase” positions in the matrix, thereby reducing the amount of money needed to pay out to early investors and enabling the fraudsters to prolong the scheme. Court records indicate that Johnson used over $200,000 of the victims’ money for her own enrichment.
According to court filings, as the scheme grew in size and scope, Johnson and her conspirators concealed the true nature of the scheme through multiple misrepresentations. According to court records, when the conspirators became concerned that the use of the term “investment” would draw scrutiny from regulators, they instructed victim-investors that “We ARE NOT an INVESTMENT program, please don’t use that term when you speak or post about our re-purchase strategy.”
According to court records, Johnson and her conspirators also lied about the company’s “business model” to the third-party payment processors which processed TAC’s money transactions. When one payment processor concluded that TAC was operating a Ponzi scheme and terminated TAC as a client, court records show that Johnson and her conspirators falsely told victim investors that it was because the payment processor was unable to handle the large amount of money TAC paid to its investors.
As indicated in court documents, the investment scheme began to crumble when payment processors stopped processing the Ponzi payments to victim-investors. By the time the scheme collapsed in February 2015, the conspirators owed victim-investors at least $51 million in purported investment returns, yet Johnson, her conspirators and TAC had available only 4% or approximately $2.6 million.
A signed plea agreement was also filed today, and Johnson is expected to appear before a U.S. Magistrate judge in the coming days to formally accept the plea. The wire fraud charge carries a maximum of 20 years in prison and a $250,000 fine. As part of her plea agreement, Johnson has agreed to pay restitution, the amount of which will be determined by the Court.
The case was investigated by the U.S. Secret Service. In making today’s announcement, Acting U.S. Attorney Rose also thanked the Denver Regional Office of the Securities and Exchange Commission for its assistance with the investigation.
Assistant U.S. Attorney Corey F. Ellis is in charge of the prosecution.
Clearwater Man Pleads Guilty to Theft of Tax Payer Refund MoneyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Sylvester Banks, Jr. today pleaded guilty to theft of government funds. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between April 2011 and March 2013, Banks received and deposited into his bank account approximately $755,900 in U.S. Treasury and other checks, which were all made payable to persons other than himself. Those checks were income tax refund checks that were the result of numerous false and fraudulently filed income tax returns. During an interview with federal agents in February 2015, Banks acknowledged that he had realized that the checks were fraudulent income tax refund proceeds, and that it was unlawful for him to have received and deposited them into his own account.
This case was investigated by the Internal Revenue Service-Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Charlotte Area Tax Return Preparer Pleads Guilty to Multi-Million Dollar Tax Return FraudRead the Press Release
CHARLOTTE, N.C. – A Charlotte-area tax return preparer pleaded guilty today to aiding or assisting in the filing of a false claim for tax refund, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Fitzroy E. Lawrence, 48, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer and admitted to aiding and assisting in the filing of hundreds of false tax returns that were filed with the IRS seeking fraudulent tax refunds totaling approximately $2.6 million.
According to the filed court documents and today’s plea hearing, for tax years 2008 through 2011, Lawrence aided and assisted in the preparation of hundreds of false tax returns, many of which included false wages and false dependent information. In pleading guilty, Lawrence also admitted that the tax loss associated with the offense is $2,635,641.
Lawrence pleaded guilty to one count of aiding or assisting in filing a false claim against the United States. The maximum penalty for this charge is five years in prison and a $250,000 fine. As part of today’s plea agreement, Lawrence has agreed to pay restitution, the amount of which will be determined by the Court at his sentencing hearing, which has not been scheduled yet. Lawrence was released on bond following his plea hearing.
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In a separate case, another Charlotte-area tax return preparer pleaded guilty for his role in filing false tax returns for clients. Malik Shropshire, 43, of Charlotte, appeared before Judge Cayer today and admitted to conspiring to file false tax returns and lying on a loan application. Shropshire’s conspirator, his sister Nkhenge Shropshire, was sentenced to 33 months in prison for her participation in the scheme in October 2014 in a related case.
According to the filed court documents and today’s plea hearing, beginning in 2010 and continuing through 2012, Shropshire worked as a tax preparer and a financial advisor. Shropshire and his conspirators recruited individuals to have their tax returns prepared by promising large refunds. For tax years 2008 through 2011, Shropshire aided and assisted in the preparation of hundreds of false tax returns that were filed with the IRS. Most of these tax returns were false because, among other things, they included false Schedule C businesses, false dependents, and false refundable education credits. As a result of the inclusion of the false information on the tax returns, the taxpayers’ tax liabilities decreased, the taxpayers received larger tax refunds, and the taxpayers qualified for the Earned Income Tax Credit.
Shropshire pleaded guilty to one count of conspiracy to impede the IRS and one count of making a false statement on a loan application. The maximum penalty for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty for the false statement on a loan application is 30 years in prison and a $1,000,000 fine. Shropshire was released on bond following his plea hearing.
Acting U.S. Attorney Rose thanked the Internal Revenue Service, Criminal Investigation Division (IRS-CI) under the direction of Special Agent in Charge Thomas J. Holloman, III, Special Agent in Charge, for the investigation of both cases. Ms. Rose also thanked Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service, for his agency’s assistance with Shropshire’s investigation.
Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution of both cases.
Cedar Rapids Safe Streets Task Force Arrest Ten Individuals Charged on Federal Gun Related OffensesRead the Press Release
Cedar Rapids - The Cedar Rapids Safe Streets Task Force took decisive action this past week to make the streets of the city safer. Ten individuals were charged on federal gun related offenses.
Safe Streets, headed by the FBI, combats guns and other violent crimes by coordinating local, state and federal agencies to maximize intelligence gathering. Coordinating focus ensures law enforcement resources are put to their best and most efficient use. The Task Force was formed in late 2009 following a spike in violent crime in the Cedar Rapids area.
United States Attorney Kevin Techau reported the Task Force=s recent activities at a press conference held at the Cedar Rapids Police Department. Other participants attending the press conference included the FBI, U.S. Marshals Service, and the Cedar Rapids Police Department.
Techau emphasized that, AThe Safe Streets Task Force, has in the past—and will in the future—focus its intelligence gathering and prosecutions on those most dangerous criminal elements who choose to unlawfully use and possess firearms.” He reinforced that Safe Streets resources are available to all law enforcement agencies with related investigations as a “force multiplier,” whether or not those agencies are members of the Task Force. U.S. Attorney Techau concluded indicating, “If you're a prohibited person possessing or using a gun, you're violating federal law and you’re going to pay a price, and federal prison time is a heavy price to pay.”
FBI Assistant Special Agent in Charge Michael Kitsmiller commented on the partnership among agencies stating, “Our Task Force is committed to working with our state, local and federal partners to combat criminal activity. The recent charges demonstrate what can be achieved through the cooperative efforts of several law enforcement agencies, and serves as a warning that criminal activity will not be tolerated in our community.” Supervisory Senior Resident Agent Gabriel Poling, the FBI agent heading the Task Force, echoed the same endorsement and warning.
Cedar Rapids Police Chief Wayne Jerman also offered his praise for the efforts of everyone involved with the Task Force. He also stated, “Since coming together and focusing our energy, it is again evident illegal activity involving firearms will not be tolerated in our city.”
In the past week, the Task Force=s work has resulted in the following charges being filed:
- Darius Devon Flowers, age 26, from Cedar Rapids, Iowa, has been charged with one count of being a felon and domestic abuser in possession of a firearm and ammunition (Case No. 15-MJ-189). On April 22, 2015, Flowers allegedly possessed a loaded .25 caliber pistol under the front passenger seat of a vehicle in Cedar Rapids. Flowers was allegedly convicted of felony possession with intent to distribute a controlled substance in 2009 and felony burglary in 2012. Flowers is in state custody. No date has been set for Flowers’ first appearance in federal court.
- Bryan Gall, age 24, from Cedar Rapids, Iowa, has been charged with one count of being a felon and unlawful drug user in possession of a firearm (Case No. 15-MJ-186). On April 29, 2015, Gall allegedly possessed two handguns, a shotgun, and several rounds of ammunition at a residence in Cedar Rapids. At the time, Gall was allegedly an unlawful user of marijuana and heroin. Gall was allegedly convicted of felony burglary in 2009 and felony possession of contraband in a correctional facility in 2010. Gall is in state custody. No date has been set for Gall’s first appearance in federal court.
- Anthony Steven Hall, Jr., age 30, from Cedar Rapids, Iowa, has been charged with one count of being a felon and unlawful drug user in possession of a firearm (Case No. 15-MJ-176). On April 13, 2015, Hall allegedly possessed a .40 caliber handgun in the console of a vehicle in Cedar Rapids. At the time, Hall was allegedly an unlawful user of marijuana. Hall was allegedly previously convicted of felony delivery of a controlled substance, felony possession with intent to deliver a controlled substance, domestic abuse assault, felony robbery, and twice for possession of a controlled substance. Hall appeared in federal court in Cedar Rapids on June 17, 2015, and was held without bond. Hall’s next appearance for a detention hearing and preliminary examination is set for June 22, 2015, at 1:30 p.m.
- Scott A. High, age 39, from Cedar Rapids, Iowa, and Herbert A. Feickert, age 61, also from Cedar Rapids, Iowa, have each been charged with one count of being a felon in possession of a firearm (Case No. 15-MJ-180). On January 2, 2015, High allegedly possessed three handguns and three long guns – as well as ammunition - at a residence in Cedar Rapids. Feickert allegedly possessed additional firearms at his residence on January 3, 2015. High was allegedly convicted of felony possession of a controlled substance in 2001 and multiple counts of felony burglary in 2009. Feickert was allegedly convicted of breaking and entering in 1973, larceny in the nighttime in 1974, multiple OWIs, and domestic abuse assault in 1992, twice in 1993, 1998, 1999, and 2002.Both High and Feickert appeared in federal court in Cedar Rapids on June 15, 2015, and were held without bond.No date has been set for either High or Feickert’s next appearance in federal court.
- Kenyatta Abdul Aziz Hill, age 29, from Cedar Rapids, Iowa, has been charged with one count of being a felon in possession of a firearm (Case No. 15-MJ-182). On December 26, 2014, Hill allegedly possessed a handgun at a residence in Cedar Rapids. Hill was allegedly previously convicted of felony delivery of a controlled substance within 1000 feet of a church and felony obstruction of justice. Hill appeared in federal court in Cedar Rapids on June 15, 2015, and was held without bond. No date has been set for Hill’s next appearance in federal court.
- Mitchell Demarcus Hall, age 25, from Cedar Rapids, Iowa, has been charged with one count of being a felon and unlawful drug user in possession of a firearm (Case No. 15-MJ-183). On May 23, 2015, Hall allegedly possessed a loaded handgun in a vehicle in Cedar Rapids. At the time, Hall was allegedly an unlawful user of marijuana. Hall was allegedly convicted of felony aggravated robbery in 2009. Hall appeared in federal court in Cedar Rapids on June 15, 2015, and was held without bond. No date has been set for Hall’s next appearance in federal court.
- Jerald Sims, age 38, from Cedar Rapids, Iowa, has been charged with one count of being a felon in possession of a firearm (Case No. 15-MJ-181). On September 19, 2014, Sims allegedly possessed two long arms at a residence in Cedar Rapids. Sims was allegedly previously convicted of felony burglary. Sims appeared in federal court in Cedar Rapids on June 17, 2015, and was held without bond. Sims’ next appearance for a detention hearing and preliminary examination is set for June 22, 2015, at 2:30 p.m.
- Fabian Taylor, age 27, from Cedar Rapids, Iowa, has been charged with one count of being a felon in possession of a firearm (Case No. 15-MJ-175). On July 20, 2014, Taylor allegedly possessed a loaded handgun in a vehicle in Cedar Rapids. Taylor was allegedly previously convicted of felony burglary and domestic abuse assault. Taylor is in state custody. No date has been set for Taylor’s first appearance in federal court.
- Marcus Alexander Thomas, age 22, from Cedar Rapids, Iowa, has been charged with one count of being an unlawful drug user in possession of a firearm and ammunition (Case No. 15-MJ-188). On March 16, 2015, Thompson allegedly possessed a loaded handgun in a vehicle in Cedar Rapids. At the time, Thomas was allegedly an unlawful user of marijuana. Thomas appeared in federal court in Cedar Rapids on June 15, 2015, and was held without bond. No date has been set for Thomas’ next appearance in federal court.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
If convicted, each individual faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The cases are being prosecuted by Assistant United States Attorneys Daniel Chatham, Anthony Morfitt, Timothy Vavricek, and C.J. Williams, and Special Assistant United States Attorneys Erin Eldridge and Ravi Narayan and investigated by the Cedar Rapids Safe Streets Task Force. During this investigation, the task force was composed of representatives from the Federal Bureau of Investigation, United States Marshals Service, Sixth Judicial District Department of Correctional Services, and the Cedar Rapids Police Department.
See attached flyer, “A Gun Can Put You Away.” a_gun_can_put_you_away.pdf (151.02 KB)
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Canton man indicted on child pornography chargesRead the Press Release
James Kovac III, 29, of Canton, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment charges that from on or about September 13, 2013, through on or about October 10, 2013, Kovac knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On October 21, 2013, images of child pornography were also found on his Compaq laptop computer.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Canton Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.