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5 August 2015
Bremerton, Washington Man Charged with Anti-Gay Hate Crime for Assault on Seattle’s Capitol HillRead the Press Release
A 38-year-old Bremerton, Washington man was charged today with a federal hate crime under the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act, for a January 2015 assault on three gay men, announced U.S. Attorney Annette L. Hayes and Principal Deputy Assistant Attorney General Vanita Gupta, head of DOJ’s Civil Rights Division. TROY DEACON BURNS, was transferred from state custody today for his initial appearance on the federal charge in U.S. District Court in Seattle at 2:00 p.m.
“When he signed the Shephard/Byrd Hate crimes prevention act into law, President Obama said ‘no one in America should ever be afraid to walk down the street holding the hands of the person they love.’ It is just that sort of fear this defendant engendered with his attack,” said U.S. Attorney Annette L. Hayes. “This federal prosecution demonstrates our commitment to protecting all the residents in our district from bias motivated attacks.”
According to the criminal complaint, just after midnight on January 25, 2015 three gay men were walking on East Pike Street toward Broadway in Seattle’s Capitol Hill neighborhood when BURNS came up behind them and shouted homophobic slurs. BURNS was holding a knife, which he raised up over his head in a stabbing position. Fearing for their safety the men started running. As BURNS caught up to one of the men he again used a slur as he threatened to stab him. One of the other men was able to pull his friend away from BURNS. The third man located Seattle Police Officers who took BURNS into custody. While detained in the patrol car, BURNS continued to yell homophobic slurs.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Commission of a hate crime is punishable by up to ten years in prison and a $250,000 fine.
The case was investigated by the Seattle Police Department and is being prosecuted by Assistant United States Attorney Bruce Miyake and Saeed Mody, Trial Attorney, Civil Rights Division, United States Department of Justice. The King County Prosecuting Attorney’s Office is providing significant assistance with the case.
Birmingham Woman Charged with Tax Evasion and Preparing Fraudulent Tax ReturnsRead the Press Release
Federal prosecutors have charged a Birmingham woman with tax evasion and aiding in the preparation of fraudulent tax returns announced U.S. Attorney Joyce White Vance and Internal Revenue Service-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
The U. S. Attorney’s Office charged EUNICE F. PLUMMER, 35, with three counts of tax evasion and eight counts of aiding in the preparation of fraudulent tax returns. The government also filed a plea agreement with Plummer in which she agrees to plead guilty to the charges and to pay restitution of $104,098 to the IRS for taxes not paid on income earned in 2011 through 2013, plus an additional $67,206 to the IRS for aiding in the preparation of fraudulent tax returns.
Plummer is the owner of M&P Tax Services located in Birmingham, AL. The information charges Plummer evaded income taxes for 2011, 2012, and 2013 by preparing and submitting personal tax returns in which she failed to report all the taxable income she earned from her business. According to the plea agreement, Plummer attempted to evade taxes by depositing the income received from M&P Tax Services into a bank account held in a relative’s name. Plummer’s understatement of taxable income resulted in additional taxes of $104,098 owed to the IRS.
The information also charges Plummer prepared false returns for the clients of M&P Tax Services and requested significant refunds from IRS. Plummer added false deductions and expenses to her clients’ tax returns which resulted in a$67,206 tax loss to the government
The case was investigated by the Internal Revenue Service - Criminal Investigation and prosecuted by Assistant United States Attorney Amanda Wick.
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Berkeley County man convicted of lying to purchase firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kody William Brown, 21, of Inwood, West Virginia, was convicted of making false representations while attempting to purchase a firearm, United States Attorney William J. Ihlenfeld, II, announced.
In February 2015, Brown attempted to purchase a .357 caliber revolver from a licensed firearms dealer in Morgan County, West Virginia. He misled the firearms dealer by indicating that he was purchasing the firearm for himself. In fact, he was purchasing the firearm for another individual who was prohibited from lawfully purchasing the gun.
Brown pled guilty to a criminal Information charging him with one count of “False Statement During Purchas of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Attorney General Loretta E. Lynch Statement on Court of Appeals Ruling in Texas Voter ID CaseRead the Press Release
Attorney General Loretta E. Lynch released a statement today after the 5th Circuit Court of Appeals upheld the ruling that Texas’s voter ID law violates Section 2 of the Voting Rights Act:
“We are pleased that the court of appeals agreed unanimously with the district court that the Texas statute violates Section 2 of the Voting Rights Act and we are studying the opinion in light of the future proceedings the court of appeals has ordered.”
A-CHANCE School Initiative Announced in Six Arkansas CountiesRead the Press Release
Fayetteville, Arkansas - United States Attorney Conner Eldridge announced the A-Chance Initiative that will be implemented in 13 schools throughout six counties in the Western District of Arkansas in the upcoming school year. Beginning when school starts on August 17, the A-Chance Program will ensure that when children are present at a violent, criminal, or traumatic event, police will notify their school by the next morning. The school will then be better able to interact with and educate the child. This program will be implemented in Washington, Sebastian, Crawford, Union, Clark, and Ouachita Counties.
Eldridge was joined at the announcement by Sebastian County Sheriff Bill Hollenbeck, Washington County Sheriff Tim Helder, Crawford County Sheriff Ron Brown, Alma Chief of Police Russell White, Fayetteville Chief of Police Greg Tabor, Farmington Chief of Police Brian Hubbard, Lincoln Chief of Police Russell Morphis, Springdale Interim Chief of Police Mike Peters, West Fork Chief of Police Bryan Watts, and Johnson Chief of Police Vernon Sizemore. Also present were the following representatives: Sergeant Frank Petra, Van Buren Police Department; Sergeant Dawn Sprayberry, Fort Smith Police Department; Farmington Freshman Academy Principal Bob Echols; Greenland Principal Alan Barton; Lincoln Assistant Principal Stan Karber; Farmington Resource Officer Chad Parrish and Fayetteville School Associate Superintendent Dr. Kim Garrett.
U.S. Attorney Eldridge commented, “Children throughout Arkansas are exposed to horrible, unconscionable situations and we must do something about it. The A-Chance program brings together those on the front lines of many of these situations: law enforcement and schools. By improving communication between these vital community leaders, kids throughout Arkansas will be more likely to receive the help and support they need in order to succeed in school and in life.”
“A-Chance” stands for Arkansas Cultivating Healthy Attitudes and Nurturing Children to Excel, and is part of a larger initiative of the Department of Justice to address children exposed to violence and trauma. The A-Chance Program directly addresses the goal of mitigating negative impacts on children exposed to violence and trauma by identifying children that have come into contact with law enforcement and ensuring that school personnel are aware of that fact. The program is simple and requires no funding, but the commitment of these law enforcement agencies and school administrators is essential in making it a success. Any time a police officer responds to the scene of a “traumatic event” and a child is present, the officer will fill out a simple form with the child’s name and the school they attend. The police will forward a the information to the school’s district office who will then forward a “Handle With Care Notice” to the appropriate school principal by the beginning of the next school day. The child’s teacher and counselor will also be notified.
The “Handle With Care Notice” contains only the child’s name, school, and that police encountered the child at a traumatic event. Potential measures schools could take when receiving the notice may include but are not limited to notifying the child’s teacher(s) that the child may need special attention; re-teaching important lessons and/or postponing testing; permitting the child time to rest if he/she has trouble focusing or staying awake; or referring the child to the school counselor if he/she exhibits behavioral or emotional problems in the classroom.
Law enforcement agencies and school districts that will participate in the A-Chance Program are as follows:
Clark County:
Clark County Sheriff’s Office
Amity Police Department
Arkadelphia Police Department
Arkadelphia Public Schools
Centerpoint Public Schools
Gurdon Police Department
Gurdon Public Schools
Crawford County:
Crawford County Sheriff’s Office
Alma Police Department
Alma Public Schools
Van Buren Police Department
Van Buren Public Schools
Ouachita County:
Ouachita County Sheriff’s Office
Camden Police Department
Camden Public Schools
Sebastian County:
Sebastian County Sheriff’s Office
Fort Smith Police Department
Fort Smith Public Schools
Union County:
Union County Sheriff’s Office
El Dorado Police Department
El Dorado Public Schools
Washington County:
Washington County Sheriff’s Office
Fayetteville Police Department
Fayetteville Public Schools
Springdale Police Department
Springdale Public Schools
Greenland Police Department
Greenland Public Schools
Lincoln Police Department
Lincoln Public Schools
Greenland Police Department
Greenland Public Schools
Farmington Police Department
Farmington Public Schools
West Fork Police Department
West Fork Public Schools
Johnson Police Department
This program is available to any school and law enforcement agency in the Western District of Arkansas. We are asking that interested parties please contact us to get started in the program.
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4 August 2015
West Burlington Man Pleads Guilty to Tax Related ChargesRead the Press Release
DAVENPORT, IA – On August 3, 2015, William W. Peugh (Peugh), 62, of West Burlington, Iowa, entered guilty pleas to three counts of failure to file tax returns before United States Magistrate Judge Stephen B. Jackson, Jr., announced U.S. Attorney Nicholas A. Klinefeldt. On each count Peugh faces a maximum sentence of one year in prison, a maximum fine of $25,000, and a term of supervised release of not more than one year following any period of incarceration. A mandatory special assessment of $25 per count must be imposed by the sentencing court.
The charges arose due to Peugh’s failure to file income tax returns for calendar years 2008, 2009, and 2010. Peugh, who owned and operated WWPeugh Sales, received income through the sale of machinery for other companies. Peugh’s income is from commissions paid by these companies. In calendar year/tax year 2008, Peugh received approximately $400,000 in commissions resulting in a tax due and owing to the Internal Revenue Service. The due date for the 2008 Form 1040 was April 15, 2009. Peugh filed for an extension to October 15, 2009 but did not file a return. In calendar year/tax year 2009, Peugh received approximately $400,000 in commissions resulting in a tax due and owing to the Internal Revenue Service. No return was filed. In calendar year/tax year 2010, Peugh received approximately $360,000 resulting in a tax due and owing to the Internal Revenue Service. Again no return was filed.
Magistrate Judge Jackson accepted Peugh’s guilty pleas, and the Court has scheduled the sentencing hearing for December 16, 2015.
The case was investigated by the Internal Revenue Service - Criminal Investigation, and the case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Virginia Beach Man Sentenced to 30 Years in Prison for Production of Child PornographyRead the Press Release
NORFOLK, Va. – Jonathon Giddens, 24, of Virginia Beach, Virginia, was sentenced yesterday to 360 months in prison, followed by lifetime of supervised release for production of child pornography. The court directed that this sentence was to run consecutively to the sentence imposed on Giddens in a related case in the City of Virginia Beach.
Giddens pleaded guilty on April 20, 2015. According to court documents, Giddens produced child pornography by tricking adolescent boys into masturbating on camera. Giddens developed numerous female alter egos, to whom he gave life by creating email addresses and accounts on dozens of social media sites. While posing as one of these girls, Giddens would then strike up online relationships with teenaged boys – both by email and chat services – and send them photographs or videos of a teenage girl exposing herself or masturbating. In exchange for these images, Giddens would convince these boys to take pictures or videos of themselves masturbating and email them to Giddens. Additionally, posing as one of his female aliases, he requested that the minors perform those acts on webcam which Giddens would then record. Giddens did not produce this pornography for its own end, but rather to use to trade with other pedophiles. In this way, Giddens amassed a collection of 6,000 images and 1,500 videos of child pornography, including a significant number of depictions of infants and toddlers being sexually abused, as well as sadomasochistic conduct, and bestiality. He also communicated with other persons about his method of successfully tricking these boys, and encouraged them to do the same.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Washington, D.C., made the announcement after sentencing by U.S. District Judge Mark S. Davis.
This case was investigated by HSI. Assistant U.S. Attorneys V. Kathleen Dougherty and Joseph L. Kosky prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-117.
Utica/Rome Area Residents Arrested in Heroin CaseRead the Press Release
SYRACUSE, NEW YORK – 21 defendants from the Utica and Rome area were arrested this morning on federal heroin charges, announced United States Attorney Richard S. Hartunian, James J. Hunt, Special Agent in Charge, United States Drug Enforcement Administration (DEA) for the region and New York State Police Superintendent Joseph A. D'Amico. Two indictments charge a total of 21 defendants for their involvement in the distribution of significant quantities of heroin. One indictment charges Edmaldo Figuero-Martinez, a/k/a Po, and 13 others with participating in a conspiracy to distribute over a kilogram of heroin in Oneida County, and 3 people with maintaining premises in Rome and Utica for heroin distribution. The other indictment charges Ernesto Alequin, a/k/a Cano, and 6 others with participating in a conspiracy to distribute over a kilogram of heroin and another man with maintaining premises in Rome for heroin distribution. Four defendants – Jamel Febus, a/k/a Shrimp, Jeremy Delmoral, Darius Wright, and Yousif Aluhujazi, a/k/a Jacob – are charged with having participated in both heroin conspiracies.
This morning, all 21 defendants were arrested and 11 federal search warrants were executed. The arrests follow a three month multi-agency investigation that included court authorized electronic eavesdropping warrants (wiretaps) obtained through federal court.
United States Attorney Richard S. Hartunian said: "The heroin epidemic has hit central New York, and we are hitting back. This case illustrates our commitment to bringing together a broad array of local, state, and federal agencies to preserve public safety and protect public health with swift and strong action. The arrests today disrupt the supply of kilograms of heroin so they do not destroy lives and devastate families."
"Today, the number of Americans who abuse heroin is at epic proportions. The defendants arrested today sought to capitalize on this deadly epidemic by turning heroin addicts into heroin dealers, doubling their customer base in the Utica and Rome areas. Law enforcement focused investigative efforts on this heroin distribution crew, resulting in 21 arrests, effectively dismantling this organization responsible for fueling heroin addiction," said DEA Special Agent in Charge James J. Hunt.
"I commend our federal and local law enforcement partners for their work in putting these drug dealers out of business -- these arrests would not be possible without their continued collaboration. Our message is simple: If you bring heroin or any other illegal drug into our communities, we will find you and put you behind bars. Heroin is a dangerous and often times deadly drug, and we will use every resource available to shut down these operations," said New York State Police Superintendent Joseph A. D'Amico.
A chart of the defendants, their charges, and maximum potential sentences is attached.
The case was investigated by the U.S. Drug Enforcement Administration (DEA), New York State Police-Community Narcotics Enforcement Team-Central (NYSP-CNET), City of Rome Police Department, City of Utica Police Department, Oneida County Sheriff’s Office, Oneida County District Attorney’s Office, U.S. Marshals Service, U.S. Border Patrol, U.S. Department of Homeland Security Investigations, Onondaga County Sheriff’s Office, and Onondaga County District Attorney’s Office. The case is being prosecuted by Assistant U.S. United States Attorney Carla Freedman.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
US Attorney’s Office Taking Part in National Night OutRead the Press Release
CEDAR RAPIDS, IOWA – Tuesday, August 4th United States Attorney Kevin Techau and office staff will join law enforcement and community leaders as part of the annual National Night Out crime and drug prevention campaign.
National Night Out is designed to heighten crime and drug prevention awareness, generate support for and participation in local anti-crime efforts, strengthen neighborhood spirit and police-community partnerships, and send a message to criminals letting them know neighborhoods are organized and fighting back. National Night Out organizers are expecting over 16,000 communities and 37 million people nationwide to take part in community events on Tuesday.
“National Night Out is a perfect opportunity for neighbors to join with their law enforcement and community partners to demonstrate that crime does not rule the night and that criminals have no safe haven when the sun goes down. I look forward to joining my colleagues on Tuesday to help continue to spread the important message that we are all in this together,” said U.S. Attorney Techau.
Assistant United States Attorneys will be joining community leaders and law enforcement across the Northern District of Iowa in Sioux City, Cedar Rapids, and Marion.
To learn more about National Night Out go to: https://natw.org/registration.
Follow us on Twitter @USAO_NDIA.
U.S. Files Intervention in Support of Tulalip Tribes Lawsuit Against State of Washington over Right to Collect Taxes from Non-Indian Businesses on Tribal LandsRead the Press Release
The United States today filed a motion to intervene and a complaint in intervention on its own behalf and as trustee for the Tulalip Tribes in their lawsuit against the state of Washington and Snohomish County over the imposition of taxes on non-Indian businesses operating on lands held in trust for Tulalip on the Tulalip Reservation. The intervention seeks to protect the authority of tribes under the U.S. Constitution and federal law to develop reservation resources and fund governmental services without unlawful interference from state and local taxation.
The Tulalip Tribes occupy a 22,000-acre reservation in Snohomish County, 35 miles north of Seattle. For economic-development purposes, Tulalip chartered its own municipal corporation, the Consolidated Borough of Quil Ceda Village, on trust land within the Reservation adjacent to Interstate 5.
“The United States takes seriously the federal role in protecting tribal self-government, which has its foundation in federal statutes, treaties, and regulations,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “To this end, we are committed to eliminating barriers, such as these, which hinder tribes from developing healthy economies and providing necessary governmental services on the reservation.”
With tens of millions of dollars in financial support and planning assistance from the federal government, Tulalip designed and built the infrastructure necessary to support a major retail, tourism and commercial center at Quil Ceda Village, including a tribal casino, resort and shopping center. The Tribe and federal government manage, maintain and provide all significant governmental services to the tenants and visitors at Quil Ceda, including police and fire protection, emergency medical and 911 services, among many others.
According to the complaint in intervention filed today in Seattle, the state of Washington and Snohomish County did not contribute in any significant respect to the development of Quil Ceda Village. Moreover, they provide no significant governmental services at the Village and they play no role in the Village’s ongoing operations. The state and county, however, impose over $40 million in annual property, business and occupation and sales taxes on the on-reservation activities at Quil Ceda. Even though Tulalip has its own applicable tribal tax laws, state and county taxation in effect precludes Tulalip from imposing its own taxes and deprives it of the tax base needed to fund important governmental services.
The United States has substantial interests in this action by virtue of the Indian Commerce Clause of the U.S. Constitution as well as federal statutes and regulations designed to foster tribal self-determination and economic independence. The United States also has substantial interests in the interpretation of its statutes and regulations and in the principles governing state and local taxation and regulation of activities on Indian reservations.
On June 12, 2015, the Tribe and Village filed suit against the Director of the Washington State Department of Revenue, as well as against Snohomish County and County officials, seeking declaratory and injunctive relief against the administration and enforcement of state and County sales and use, B&O and property taxes in connection with the economic activities at Quil Ceda Village. The legal claims in this case, however, squarely implicate federal interests.
Two Men Charged with Illegal Gambling BusinessRead the Press Release
BOSTON – Two men, one from Middleborough and the other from Winthrop, were charged today in the U.S. District Court in Boston with conducting an illegal gambling business.
John Evans, 68, of Middleborough, and Joseph Petrucelli, 24, of Winthrop, were charged in connection with a five-year gambling operation being conducted, in part, from a condominium on Seal Harbor Road in Winthrop, Mass. According to the indictment, the gambling business started by at least 2009 and operated through 2014. The indictment alleges that at least five people were involved in conducting the business. Only Evans and Petrucelli have been charged.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Jr., Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Medford, Middleborough, Quincy, and Whitman Police Departments. The case is being prosecuted by Assistant U.S. Attorney Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Canadians Sentenced for Distributing Counterfeit and Adulterated Botox to Local DoctorsRead the Press Release
St. Louis, MO – KAMALDEEP SANDHU and NAVDEEP SANDHU, both residents of Vancouver, British Columbia, Canada, pled guilty today and were sentenced for distributing counterfeit, misbranded and adulterated Botox® into the United States, including multiple shipments to two doctors located in St. Louis County, Missouri. Both defendants entered their plea before United States District Judge Carol E. Jackson, in St. Louis, MO. Kamaldeep Sandhu received a sentence of 24 months of imprisonment, while Navdeep Sandhu received a sentence of 3 months.
According to defendants’ plea agreements, defendants operated a sophisticated wholesale drug distribution business involving multiple persons in Canada, Panama and Turkey. Defendants sourced Botox® from Turkey and shipped it to multiple U.S. doctors in Missouri and other states. According to the label for FDA approved Botox® Cosmetic, unopened vials of Botox® Cosmetic should be stored in a refrigerator at temperatures between 2° to 8° Celsius before dispensing to patients. Defendants’ drugs were adulterated because defendants’ business did not keep the Botox® Cosmetic at constant cold temperatures, and sometimes shipped and stored these drugs with no refrigeration or insulation. Further, some of the Botox® Cosmetic sold by defendants had counterfeit exterior packaging, and the manufacturing lot numbers on the exterior of the drugs’ cartons did not match the lot numbers on the drug vials inside the cartons.
FDA issued several public safety alerts about these events. This ongoing investigation has led to a number of related prosecutions in the District, including Dr. Erick Falconer, Greg Martin, Ozkan Semizoglu and Sabahaddin Akman.
"Today's sentencing demonstrates that we will continue to pursue and bring to justice those who violate the law and jeopardize public safety by shipping adulterated and misbranded drugs into the United States," said Catherine Hermsen, Special Agent in Charge, FDA Office of Criminal Investigations, Kansas City. "I would like to thank our law enforcement partners in INTERPOL Washington, the U.S. Marshals Service and the Royal Canadian Mounted Police for their assistance in this case."
This case was investigated by FDA’s Office of Criminal Investigations, with assistance from a number of other domestic and foreign law enforcement organizations.
Three Orange County Residents Charged with $2.5 Million Fraud Involving Fraudlent Loans to Banks and Credit Unions Throughout the NortheastRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (“USPIS”), and Thomas E. Bishop, Acting Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service’s Criminal Investigation Division (“IRS-CI”) announced the arrests today of BINDER TAL, BALDEV TAL, and SHARIFUL MINTU on bank fraud and money laundering charges. BALDEV TAL was arrested this morning in Orefield, Pennsylvania and appeared in Philadelphia federal court this afternoon. MINTU was arrested this morning in Orange County, New York, and appeared in White Plains federal court this morning, before U.S. Magistrate Judge Paul E. Davison. BINDER TAL remains at large. Each defendant is charged with one count of conspiring to commit bank fraud and one count of conspiring to commit money laundering.
Manhattan U.S. Attorney Bharara said: “For years, banks, credit unions, and small businesses have lost millions of dollars because of the fraud allegedly perpetrated by the defendants in this case. I would like to thank our partner agencies for their assistance on this case.”
Inspector in Charge Philip R. Bartlett said: “Through disguise and deceit, these defendants created an elaborate scheme to defraud financial institutions. The use of the U.S. Mail to facilitate any fraud scheme will never be tolerated by members of America's oldest law enforcement agency"
Acting Special Agent-in-Charge Thomas E. Bishop said: “IRS-CI is always ready to work with our law enforcement partners in the investigation of money laundering schemes and the financial crimes with which they are related. It is important to remember that money laundering is not a victimless crime. While the victims of bank fraud are usually identifiable individuals or institutions, the damage money laundering inflicts on our nation’s economic strength ultimately harms every American taxpayer.”
According to the allegations in the Complaint unsealed this morning in White Plains federal court[1]:
From at least in or about 2007 through in or about July 2015, BINDER TAL, BALDEV TAL, and MINTU fraudulently obtained loans and lines of credit from banks, credit unions, and other lending institutions. The defendants obtained the loans by providing materially false information to the lenders about the borrowers’ assets, including false information about the borrowers’ employment and income. Through their scheme, the defendants and their co-conspirators fraudulently obtained more than $2.5 million in proceeds in connection with dozens of loan applications and applications for lines of credit. The vast majority of the loans and lines of credit went into default, and millions of dollars were not repaid.
As part of their fraud scheme, the defendants used the proceeds to personally enrich themselves and their families. They used their proceeds for, among other things, (i) credit card debts for personal expenses; (ii) debts arising from business expenses; and (iii) debts arising from other fraudulently obtained loans, to conceal the fraudulent nature of these loans.
In addition, the defendants and their co-conspirators also engaged in extensive efforts to perpetuate and conceal the fraudulent scheme. These efforts included members of the conspiracy acting as the borrowers for different loans, falsely claiming that the purpose of the loans was to purchase or finance used luxury automobiles. In fact, many of the automobiles were never purchased or leased by the defendants or their co-conspirators, and the loan proceeds were later distributed to other members of the conspiracy and to entities they controlled.
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BINDER TAL, BALDEV TAL, and MINTU each face a maximum sentence of 30 years in prison on the charge of conspiring to commit bank fraud and a maximum sentence of 20 years in prison on the charge of conspiring to commit money laundering. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding efforts of the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation Division, and the New York State Police Special Investigations Unit.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney John P. Collins, Jr. is in charge of the prosecution.
The charge and allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Texas Man and Mexican National Plead Guilty in New Mexico to Federal Heroin Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Arturo Martinez, 23, of El Paso, Texas, and Bryan Marinelarena, 20, a Mexican national, each pleaded guilty this morning in federal court in Las Cruces, N.M., to a federal heroin trafficking charge.
Martinez and Marinelarena were arrested on May 23, 2015, during a routine inspection at the U.S. Border Patrol checkpoint on Interstate 10 in Doña Ana County, N.M. According to the criminal complaint, agents found approximately 6.6 kilograms of heroin concealed within the vehicle that Martinez and Marinelarena were driving from El Paso to California.
During today’s proceedings, Martinez and Marinelarena each pled guilty to a felony information charging them with conspiracy to possess heroin with intent to distribute. Each admitted that on May 23, 2015, in Doña Ana County, Border Patrol agents discovered approximately 6.6 kilograms of heroin hidden in the engine of the SUV in which they were traveling. The two men further admitted that they were paid to transport the heroin from El Paso to California.
Under the terms of their respective plea agreements, Martinez and Marinelarena each will be sentenced to 87 months in prison followed by a term of supervised release to be determined by the court. Both remain in custody pending sentencing hearings which have yet to be scheduled.
This case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Ten Defendants Charged in White Plains Federal Court with Heroin Trafficking and Firearms Offenses in Dutchess CountyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Adrian H. Anderson, the Dutchess County Sheriff, and Ronald J. Knapp, the Chief of Police of City of Poughkeepsie Police Department, today announced the unsealing of an Indictment and two Complaints charging 10 defendants with committing heroin trafficking and firearms offenses in and around Dutchess County, New York. Eight defendants were taken into federal custody today and were presented in White Plains federal court this afternoon before U.S. Magistrate Judge Paul E. Davison. Two defendants were previously taken into federal custody on a Complaint filed on May 14, 2015.
U.S. Attorney Preet Bharara said: “Heroin is a growing problem in New York, making an unfortunate comeback in cities and rural communities alike. Heroin and prescription pill overdoses keep going up, killing more and more people every day. With heroin trafficking and firearms charges like those brought today against ten defendants selling drugs in Dutchess County, we aim to confront this epidemic. We thank the FBI, the Dutchess County Sherriff’s Office and the Poughkeepsie Police Department for their extraordinary efforts on this case.”
Assistant Director-in-Charge Diego Rodriguez said: “Today, we announce the charges against ten individuals who allegedly sought to sell heroin in the City of Poughkeepsie with the aid of firearms. The charges demonstrate the FBI’s continued effort to work closely with our law enforcement partners in eliminating the terror these groups inflict on our communities. Dismantling violent gangs remains a priority for the FBI.”
Sheriff Adrian H. Anderson said: “Today the Dutchess County Sheriff’s Office partnered with Federal and local law enforcement agencies to assist in the arrests of numerous people who have allegedly been dealing heroin and other dangerous drugs throughout Dutchess County and surrounding areas. All of these law enforcement agencies are dedicated to working together to rid our streets of dangerous drugs, and I would like to take this opportunity to thank the U.S. Attorney’s Office, the FBI, and the City of Poughkeepsie Police for their outstanding work in helping to make this investigation such an enormous success. Those who deal in heroin and other dangerous drugs are not going to be allowed to poison our community, and this investigation is the latest example of how Federal and local law enforcement agencies working together can make a huge difference and go a long way towards making our streets and residents safer.”
Chief of Police Ronald J. Knap said: “These arrests culminate a joint investigation into regional narcotics trafficking, specifically heroin. The City of Poughkeepsie was one of the communities that these suspects lived and operated in. We thank the U.S. Attorney’s Office for their work and pending prosecution of this case. We also thank the FBI and Dutchess County Sheriff for their participation in this successful investigation. The City of Poughkeepsie has suffered more than its share of heroin deaths. Arresting and prosecuting those who deal in these dangerous drugs on the Federal level is an important strategy as the effort cannot be deal with solely as a local problem.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
From December 2013 through June 2015, MONDU ALLAH, CARITA BENNERMAN, CLIFTON CATTS, EUGENE LAMONT GRAVES, LARRY GRAVES, MAURICE HOLLIS, JULIENNE KOLOZY, and SAMUEL TURNER conspired to sell more than one kilogram of heroin. During the course of the conspiracy, law enforcement officers observed certain defendants participating in the sale of heroin to confidential informants working with law enforcement and to an undercover law enforcement officer. Law enforcement officers, using a court-authorized wiretap, also intercepted numerous communications in which certain of the defendants discussed heroin trafficking and arranged heroin transactions. On May 13, 2015, ALLAH and HOLLIS also carried, and aided and abetted the carrying of, a firearm in furtherance of the narcotics conspiracy charged in the Indictment.
In addition the Indictment, two Complaints were also unsealed today. As alleged in those Complaints:
From December 2013 through January 2014, ROBERT NOVICK conspired to sell heroin, and sold 3, 4 methylenedioxymethamphetamine, commonly referred to as “MDMA,” in Poughkeepsie. On May 9, 2015, VARICK GOSS conspired to sell heroin and crack cocaine in Poughkeepsie.
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ALLAH and HOLLIS, two of the defendants charged in the Indictment, both face a mandatory term of 10 years in prison on Count One and a mandatory term of 5 years in prison on Count Two, consecutive to any sentence on Count One. Each faces a maximum term of life in prison on both counts. The other six defendants charged in the Indictment each face a mandatory term of 10 years in prison on Count One, and a maximum term of life. Each defendant charged in the Complaints faces a maximum term of 20 years in prison. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendants would be determined by the respective judges.
Mr. Bharara praised the outstanding investigative work of the FBI Hudson Valley Safe Streets Task Force, the Dutchess County Sheriff’s Office, the City of Poughkeepsie Police Department, and other local law enforcement partners.
These cases are being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Lauren Schorr and Douglas Zolkind are in charge of the prosecutions.
The charges contained in the Indictment and Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
15-202
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
Narcotics conspiracy – Heroin
(conspiracy to distribute and possess with intent to distribute heroin, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(A))
MONDU ALLAH,
a/k/a “Mindu Allah,”
a/k/a “Duberry,”
a/k/a “Du,”
CARITA BENNERMAN,
CLIFTON CATTS,
EUGENE LAMONT GRAVES,
LARRY GRAVES,
a/k/a “Knowledge,”
MAURICE HOLLIS,
a/k/a “Mo,”
JULIENNE KOLOZY, and
SAMUEL TURNER
Life in prison
Mandatory minimum: 10 years in prison
Use of a firearm in furtherance of a drug trafficking crime
(in violation of 18 U.S.C. § 924(c))
MONDU ALLAH,
a/k/a “Mindu Allah,”
a/k/a “Duberry,”
a/k/a “Du,” and
MAURICE HOLLIS,
a/k/a “Mo”
Life in prison
Mandatory minimum: 5 years in prison, to be imposed consecutively to any other sentence
Narcotics conspiracy – Heroin
(conspiracy to distribute and possess with intent to distribute heroin, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(C))
ROBERT NOVICK
20 years in prison
Distribution and possession with intent to distribute 3, 4 methylenedioxymethamphetamine
(in violation of 21 U.S.C. §§ 841(a)(1) & 841(b)(1)(C))
ROBERT NOVICK
20 years in prison
Narcotics conspiracy – Heroin and crack cocaine
(conspiracy to distribute and possess with intent to distribute heroin, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(C))
VARICK GOSS
20 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the Complaints, and the description of the Indictment and the Complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Sullivan County Man Sentenced to 12 Years in Prison for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that SAMUEL TERWILLIGER was sentenced to 12 years in prison for his attempted enticement of a minor to engage in sexual activity. TERWILLIGER pled guilty on October 22, 2014 before U.S. District Court Judge Vincent Briccetti, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Samuel Terwilliger has now been sentenced for his predatory crime, attempting to entice a minor to engage in sexual activity. This case – and others like it that we prosecute – underlines the need for law enforcement to be vigilant in its protection of children from those who prey on them. I want to thank the FBI, the Rockland County Computer Crimes Task Force, the Child Protective Services of Sullivan County, and the Sullivan County Sheriff’s Department for their work in this investigation and prosecution. ”
According to the Complaint and other documents filed in this case, and statements made in related court proceedings:
In August 2013, an individual (the “Reporter”) advised the Federal Bureau of Investigation (“FBI”) that the Reporter, posing as a 14-year-old girl, had engaged in online communications with a person using the screen name “tas_128.” During those communications, “tas_128” indicated that “tas_128” wanted to engage in sexual activities with the Reporter. The FBI instructed the Reporter to advise “tas_128” that the Reporter had a young friend who would be interested in communicating with “tas_128” and provided the Reporter with an email address to provide to “tas_128” for an undercover FBI agent (“UC”).
Between August 16, 2013 and September 26, 2013, the UC and “Tas_128,” later identified as SAMUEL TERWILLIGER, engaged in a series of emails and text communications. Among other things, TERWILLIGER told the UC that he was 24 years old and the UC told TERWILLIGER that she was a 13-year-old girl. During these communications, TERWILLIGER acknowledged his understanding that the UC was a minor, solicited graphic sexual images of the minor from the UC, and described in detail a variety of sexual acts he wanted to engage in with the 13-year-old. TERWILLIGER repeatedly requested that the minor join him in a “three-way relationship” with his girlfriend and told the girl that he wanted to impregnate her. TERWILLIGER told the UC, “We have been trying to find a woman for a year now that would join our relationship.”
On April 10, 2014, the FBI executed a search warrant at the defendant’s residence. On that date, the defendant admitted that he had engaged in sexually-explicit conversations with a girl whom he believed to be approximately 13 years old. He also admitted that, at the time he was communicating with her, he planned to bring her to stay with him and his girlfriend because he wanted to have sex with her and impregnate her. In addition, the defendant admitted that, in October 2013, he had engaged in sexual intercourse with a 15-year-old girl while his girlfriend watched.
* * *
TERWILLIGER, 26, of Calicoon, NY, was also sentenced to 5 years’ supervised release to follow the imprisonment.
Mr. Bharara praised the efforts of the FBI, the Rockland County Computer Crimes Task Force, Child Protective Services of Sullivan County, and the Sullivan County Sheriff’s Department in connection with this case.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
St. Francis Man Sentenced for Prohibited Person in Possession of a FirearmRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on July 28, 2015, by U.S. District Judge Roberto A. Lange.
Cody James Horse Looking, age 30, was sentenced to 1 month in custody, followed by 18 months of supervised release, which includes 9 months of home confinement, and a special assessment of $100 to the Federal Crime Victims Fund.
Horse Looking was indicted by a federal grand jury on August 19, 2014. He pled guilty on April 27, 2015.
The conviction stems from an incident on February 15, 2014, when Horse Looking, who previously had been convicted of Domestic Violence Simple Assault in 2011, was at a bar in Valentine, Nebraska, and had a disagreement with another man. At some point after the bar closed, Horse Looking stopped at the Rosebud Casino Fuel Plaza convenience store, and the other man was also there. There was more arguing and disagreement in the parking lot, when Horse Looking produced a Glock .40 caliber pistol and fired it into the air. No one was injured or shot at directly. Horse Looking left the area and law enforcement was called.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Horse Looking is to self-report to the custody of the U.S. Marshals Service by September 1, 2015, to commence his sentence.
St. Francis Man Sentenced for First Degree BurglaryRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of First Degree Burglary was sentenced on July 27, 2015, by U.S. District Judge Roberto A. Lange.
Nathan Sharpfish, age 28, was sentenced to 27 months in custody, followed by 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Sharpfish was indicted by a federal grand jury on February 11, 2015. He pled guilty on May 5, 2015.
The conviction stems from an incident on or about January 8, 2015, when Nathan Sharpfish, who was drinking at the home of Kirby Sharpfish, was asked to leave the premises. Nathan Sharpfish left, but returned a short while later and began to hit the door of the home with a hatchet. Kirby Sharpfish opened the door, and Nathan Sharpfish swung the hatchet at him, hitting Kirby on the back of his head, causing a laceration.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Sharpfish was immediately turned over to the custody of the U.S. Marshals Service.
# # #
Six South Florida Residents Charged in $36 Million Government Fraud Scheme Involving Low-Income Housing DevelopmentsRead the Press Release
Six residents of South Florida were charged with conspiring to defraud the United States government by stealing millions of dollars and property intended for the construction of low-income housing developments.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office, Nadine Gurley, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
The following defendants were charged by criminal information:
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Matthew Greer, 37, of Miami Beach, a former chief executive officer of Carlisle Development Group (“CDG”), a low-income housing developer in Miami;
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Lloyd Boggio, 69, of Coconut Grove, a former chief executive officer of CDG;
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Michael Runyan, 66, of Lighthouse Point, the chief executive officer of BJ&K Construction, Inc., a general contractor in Fort Lauderdale;
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Gonzalo DeRamon, 51, of Coral Gables, a founder of Biscayne Housing Group, Inc. (“BHG”), a low-income housing developer in Miami;
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Michael Cox, 47, of Miami, a co-founder of BHG; and
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Rene Sierra, 57, of Southwest Ranches, a founder of Siltek Affordable Housing LLC (“Siltek”), a general contractor in Plantation.
Greer, Boggio, and DeRamon were charged with two counts of conspiracy to commit theft of government money and property, in violation of Title 18, United States Code, Section 371, an offense punishable by a statutory maximum term of five years in prison as to each count.
Runyan, Cox, and Sierra were charged with one count of conspiracy to commit theft of government money and property, in violation of Title 18, United States Code, Section 371, an offense punishable by a statutory maximum term of five years in prison.
According to allegations contained in the charging documents, Florida Housing Finance Corporation (“FHFC”) issued federal tax credits and grant monies to developers for the construction of low-income housing in Florida. To obtain these federal funds, FHFC required developers to submit proposed development costs, including a construction contract signed by the developer and contractor. The informations allege that the defendants conspired to unjustly enrich themselves by fraudulently inflating the costs of the construction contracts in order to obtain excess federal funds to which they were not entitled, and then to use the proceeds for their own personal use and benefit.
From 2007 to 2012, CDG executives Greer and Boggio allegedly conspired with BJ&K executive Runyan to steal federal tax credits and grant monies, by submitting fraudulently inflated construction contracts to FHFC for eight different low-income housing developments in Miami-Dade County and elsewhere: Brownsville Transit Village II (a 100-unit apartment complex in Brownsville), Brownsville Transit Village III (a 103-unit apartment complex in Brownsville), Brownsville Transit Village IV (a 102-unit apartment complex in Brownsville), Everett Stewart Senior Village (a 96-unit apartment complex in Brownsville), Metro (a 90-unit apartment complex in Overtown), Poinciana Grove (an 80-unit apartment complex in Little Haiti), Villa Patricia III (an 89-unit Apartment complex in Little Haiti), and Wahneta Palms (a 64-unit apartment complex in Polk County).
From 2009 to 2012, BHG founders DeRamon and Cox allegedly conspired with Siltek owner Sierra to steal federal tax credits and grant monies by submitting fraudulently inflated construction contracts to FHFC for four different low-income housing developments in Miami-Dade County: Bonita Cove (a 60-unit apartment complex in Little Haiti), Labre Place (a 90-unit apartment complex in Overtown), Notre Dame (a 64-unit apartment complex in Little Haiti), and Village Carver II (a 90-unit apartment complex in Little Haiti). In addition, DeRamon, Cox, Greer, and Boggio, as alleged in the information, had a side agreement to share in the illegal kickback payments for Labre Place and Village Carver II.
From 2009 to 2012, BHG founders DeRamon and Cox allegedly conspired with Arturo Hevia to steal federal tax credits and grant monies by submitting fraudulently inflated construction contracts to FHFC for two different low-income housing developments in Miami-Dade County: Casa Matias (an 80-unit apartment complex in Homestead) and Georgia Ayers (a 72-unit apartment complex in Opa-Locka).
Court documents allege that as a result of the fraudulently inflated contracts, FHFC allocated more than $36 million in excess tax credits and grant monies for the fourteen low-income developments built by CDG and BHG. Both during and after construction of the developments, the contractors allegedly made periodic kickback payments of the construction inflation monies for the benefit of the CDG and BHG principals, including more than $26 million in kickbacks from Runyan for the benefit of Greer and Boggio; more than $6.2 million in kickbacks from Sierra for the benefit of DeRamon, Cox, Greer, and Boggio; and more than $1 million in kickbacks from Arturo Hevia for the benefit of DeRamon and Cox.
As alleged in the information, the kickback payments were in addition to tens of millions of dollars in FHFC authorized developers’ fees that BHG and CDG were receiving for building the low-income housing developments.
During the course of the investigation, seizure warrants were executed and approximately $10.8 million in proceeds of the alleged thefts of government funds were recovered.
U.S. Attorney Wifredo A. Ferrer stated, “[M]otivated by personal greed, the defendants are charged with stealing tens of millions of dollars of federal funds intended for the construction of housing for the poor, the homeless, and the elderly of South Florida. Our office will vigorously pursue those who line their pockets with federal resources that are intended to benefit vulnerable individuals and families.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, stated, “The Low Income Housing Tax Credit (LIHTC) was created to encourage investment and is an important resource for creating affordable housing in South Florida. LIHTCs were not intended to be a vehicle for get-rich-quick kickback schemes. IRS Criminal Investigation enforces the nation's tax laws, including those involving LIHTC, and takes particular interest in cases where individuals and corporations fraudulently use credits and/or other government funding mechanisms for their own personal benefit.”
“We are committed to pursuing individuals who attempt to steal funds meant for the less fortunate. HUD-OIG and our law enforcement partners will continue to work jointly in uncovering such schemes in order to bring those responsible to justice,” said Nadine E. Gurley, Special Agent in Charge, HUD-OIG.
An information is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Mr. Ferrer commended the investigative efforts of the FBI, HUD-OIG and IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Michael R. Sherwin, Michael N. Berger, Evelyn B. Sheehan and Eloisa D. Fernandez.
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.
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Sex Offender Sentenced to 120 Years in Prison for 'Sex Tourism,' Victimized Five Filipino ChildrenRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a prior sex offender was sentenced in federal court today for sexually abusing five separate child victims in the Philippines.
“This sexual predator abused an untold number of young children,” Dickinson said. “Today’s tough sentence ensures the public – and more importantly, his victims – that he will never be released from prison. A lengthy sentence also sends an unmistakable message about the consequences for committing such a monstrous crime against the most vulnerable members of society.
“He thought he could move to another country to escape the legal repercussions of his actions,” Dickinson added, “but he was not beyond the reach of justice.”
Kenneth Gaylord Stokes, 71, a U.S. citizen who resided near the city of Cebu in the Philippines, was sentenced by U.S. District Judge M. Douglas Harpool to 120 years in federal prison without parole.
“Child sex predators should take special note of this significant conviction,” said Deputy Special Agent in Charge James Gibbons of Homeland Security Investigations (HSI) Chicago. “HSI is committed to stopping the exploitation of children and has dedicated vast resources to investigate these types of crimes. HSI will continue to partner with other law enforcement agencies and will never stop pursuing those who harm children.”
On Jan. 27, 2015, Stokes pleaded guilty to five counts of engaging in illicit sexual conduct in foreign places. Stokes was arrested at his Philippines residence on Dec. 3, 2012, and deported to the United States. He has been in federal custody without bond since his arrest. Stokes has a prior conviction for raping a 7-year-old child in the state of Washington.
In July 2012, a federal agent located a Craigslist advertisement from Stokes that offered photography services in the Philippines. Stokes and the agent communicated via e-mail for several months, during which time Stokes e-mailed to the agent photos of juvenile females, some of whom were in sexually explicit poses.
According to court documents, Stokes told the undercover agent during the exchange of e-mails that he had “no limits” on taking videos or photographs and that he had married a Filipino woman “to get to her daughter” and later made her “disappear.” Stokes indicated in one e-mail that the undercover agent could “have any preteen” he wanted in the Philippines.
The agent expressed his interest in meeting Stokes, who encouraged the agent to visit and indicated that he would help facilitate sexual liaisons with both his own wife and Filipino children.
According to court documents, the Deputy Attaché in the Philippines indicated that Stokes had been confronted by local authorities in 2012 after he reportedly molested a juvenile female and took explicit photographs of her. Apparently, no action was taken by those authorities.
On Dec. 3, 2012 the agent met Stokes at his residence in the Philippines. Stokes explained that he planned to take the agent to two different locations where he would be able to find children to sexually victimize, according to court documents. Stokes also expressed his desire for the agent to impregnate his wife in hopes that he would later be able to use the child for sexual purposes. Stokes explained that his wife would not consent to having sex with the undercover agent and encouraged him to rape her.
Stokes also bragged that he had taken thousands of images depicting child pornography, according to court documents, and indicated that people in other countries paid him to produce made-to-order child pornography. Stokes later told investigators that he had produced child pornography for multiple individuals and sold collections of child pornography for as much as $1,250. One such collection has been discovered in other investigations.
Stokes showed the undercover agent multiple images of child pornography on his laptop computer. The undercover agent left the house and returned with local law enforcement officers to arrest Stokes.
Investigators seized Stokes’s computers and conducted a forensic examination. They were able to determine the identities of five minor females (identified as Jane Doe #1, #2, #3, #4, and #5) who later told law enforcement officers that Stokes paid them to pose for the sexually explicit photos. Investigators found thousands of pictures and video recordings depicting child pornography on Stokes’s computers, as well as a script for a movie depicting the sexual and physical abuse of a child.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Seven Vice Lords Charged in Gang-Related ShootingRead the Press Release
Seven members of the Vice Lords were charged in an indictment unsealed today with various offenses based on their roles in a gang-related shooting. The charges are the result of the collaborative efforts of law enforcement and the community to reduce homicide and other violent crime under the Detroit One program, which has led to the arrests and convictions of Vice Lords leaders during this past year.
The announcement was made by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department.
The seven Vice Lord members charged with crimes stemming from this incident are:
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Antonio Clark, aka Cheeto, 25, of Detroit, is charged with attempted murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, use and carry of firearms during and in relation to a crime of violence and being a felon in possession of firearms;
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Aramis Wilson, aka Ace, 24, of Detroit, is charged with attempted murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, use and carry of firearms during and in relation to a crime of violence and being a felon in possession of firearms;
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Tyrone Price, aka Price, 26, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence;
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Jonathan Kinchen, aka Deago, 22, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence;
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Kojuan Lee, aka Juan, 19, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence;
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Kirshean Nelson, 18, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence; and
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Dion Robinson, aka Doggy, 37, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence.
Robinson, Clark, Price and Kinchen are in custody; arrest warrants have been issued for the other three defendants.
According to the indictment, the Vice Lords is a national gang engaged in a variety of crimes, including murder, robbery, narcotics trafficking and witness intimidation. The indictment alleges that the Vice Lords’ leaders are located in both Chicago and Detroit, and that the gang is broken down into various “sets,” “decks,” or “branches,” including the Detroit-based Insane Vice Lords, Imperial Insane Vice Lords, Traveling Vice Lords, Conservative Vice Lords, Mafia Insane Vice Lords and Insane Goon Gang. The indictment further alleges that members who seek to leave or withdraw from the gang oftentimes endure a physical beating, known as a “beat out,” by multiple Vice Lord members, or are targeted for killing, known as a “green light.”
According to the indictment, on May 7, 2015, to maintain and improve their positions in the Traveling Vice Lords, the defendants shot four individuals from the same family. The indictment alleges that the shooting was prompted by two of the family members’ attempts to leave the gang.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the ATF, FBI and the Detroit Police Department. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Eastern District of Michigan.
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Seven Vice Lords Charged in Gang-Related ShootingRead the Press Release
Seven members of the Vice Lords were charged in an indictment unsealed today with various offenses based on their roles in a gang-related shooting. The charges are the result of the collaborative efforts of law enforcement and the community to reduce homicide and other violent crime under the Detroit One program, which has led to the arrests and convictions of Vice Lords leaders during this past year. The announcement was made by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department. “The Detroit One partners are working to dismantle street gangs that drive the violence in our neighborhoods,” McQuade said. “This indictment is particularly important because we want to demonstrate support for individuals who attempt to leave gang life.” The seven Vice Lord members charged with crimes stemming from this incident are: • Antonio Clark, aka Cheeto, 25, of Detroit, is charged with attempted murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, use and carry of firearms during and in relation to a crime of violence and being a felon in possession of firearms; • Aramis Wilson, aka Ace, 24, of Detroit, is charged with attempted murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, use and carry of firearms during and in relation to a crime of violence and being a felon in possession of firearms; • Tyrone Price, aka Price, 26, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence; • Jonathan Kinchen, aka Deago, 22, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence; • Kojuan Lee, aka Juan, 19, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence; • Kirshean Nelson, 18, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence; and • Dion Robinson, aka Doggy, 37, of Detroit, is charged with assault with a dangerous weapon in aid of racketeering, and use and carry of firearms during and in relation to a crime of violence. Robinson, Clark, Price, Kinchen and Wilson are in custody; arrest warrants have been issued for the other three defendants. According to the indictment, the Vice Lords is a national gang engaged in a variety of crimes, including murder, robbery, narcotics trafficking and witness intimidation. The indictment alleges that the Vice Lords’ leaders are located in both Chicago and Detroit, and that the gang is broken down into various “sets,” “decks,” or “branches,” including the Detroit-based Insane Vice Lords, Imperial Insane Vice Lords, Traveling Vice Lords, Conservative Vice Lords, Mafia Insane Vice Lords and Insane Goon Gang. The indictment further alleges that members who seek to leave or withdraw from the gang oftentimes endure a physical beating, known as a “beat out,” by multiple Vice Lord members, or are targeted for killing, known as a “green light.” According to the indictment, on May 7, 2015, to maintain and improve their positions in the Traveling Vice Lords, the defendants shot four individuals from the same family. The indictment alleges that the shooting was prompted by two of the family members’ attempts to leave the gang. The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty. This case is being investigated by the ATF, FBI and the Detroit Police Department. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Eastern District of Michigan. # # #
Seven Members of South Minneapolis Gang Indicted for Violent Drug Trafficking ConspiracyRead the Press Release
United States Attorney Andrew M. Luger, ATF Special Agent in Charge for the St. Paul Field Division James C. Modzelewski, Minneapolis Police Chief Janeé Harteau and Hennepin County Attorney Michael O. Freeman today announced a federal indictment charging seven members of the 10z and 20z street gangs with crimes related to a multi-year gang war with their rivals, which included a shooting in August 2014 outside of the Hennepin County Medical Center. The defendants include both leaders and other members of the 10z and 20z. They are charged with conspiracy to possess firearms in the furtherance of a drug trafficking conspiracy, conspiracy to distribute controlled substances, possession with intent to distribute heroin and crack cocaine, and illegal possession of firearms and ammunition. The defendants are expected to make initial appearances today in U.S. District Court in St. Paul, Minn.
“Today’s indictment marks the sixth violent street gang that this office has indicted since 2014,” said U.S. Attorney Luger. “Street gangs trafficking heroin and other drugs in Minnesota are engaged in violence against one another and endangering the communities in which innocent civilians live and work. We are using every tool at our disposal to investigate and prosecute the members of these gangs who use firearms to protect their illegal drug trade and attempt to expand their areas of operations. Working with both federal and local law enforcement, my office remains focused on violent street gangs and the harm they cause to our communities. We will continue to go neighborhood to neighborhood to stop the gang wars that so often accompany drug trafficking.”
Minneapolis Police Chief Janeé Harteau said: “This indictment is a true testament to the partnerships and hard work of the MPD Weapons Unit, MPD’s Third Precinct Community Response Team, ATF and the Minnesota Department of Corrections. Our hope is this sends a strong message to those who participate in gang violence that they will be held accountable for putting innocent lives in danger. Over the course of the MPD investigation, more than two dozen guns have been linked to this gang, which has been responsible for 50 different shooting incidents in Minneapolis in the past year.”
Bureau of Alcohol, Tobacco, Firearms and Explosives, St. Paul Field Division Special Agent in Charge James Modzelewski said: “ATF’s core mission, enforcing laws that prohibit misuse of firearms, have placed ATF in the center of these violent gang investigations along with our local law enforcement partner, the Minneapolis Police Department. I am confident that this investigation will significantly impact the flow of illegal firearms and criminal use of those firearms on the streets.”
Hennepin County Attorney Mike Freeman said: “We are thankful the U. S. Attorney’s Office has indicted these extremely dangerous men. We have been prosecuting some of the same men, such as Percy Lacey who took part in a wild shootout by the Hennepin County Medical Center last summer. Bringing a coordinated state and federal prosecution to break up these gangs will be a big help in our mutual goal of reducing gun violence in Minneapolis.”
According to the indictment and documents filed in court, between at least January 2013 and July 2015, the defendants were active members of two closely associated street gangs known as the 10z and the 20z. The gangs operated in South Minneapolis, primarily between Franklin Avenue, and Lake Street, and I-35W and Minnehaha Avenue. Their primary purpose was to make money for the gang members through the sale of illegal drugs, including crack cocaine, heroin, and marijuana. As part of their drug trafficking operation, members of the gangs routinely engaged in gun violence with rival gangs. The purpose of this violence was to protect drug dealing territory controlled by the 10z and 20z, to protect individual drug distributors from rival gang violence, to attack and seize drug dealing territory controlled by rival gangs, and to attack and rob drug distributors associated with rival gangs.
According to the indictment and documents filed in court, the 10z and 20z were involved in a gang war with their primary rival gangs, the Bloods and the Bogus Boys. The gang war was very violent and resulted in shootings of gang members on both sides, some of which caused the death of gang members. Virtually all of these shootings were the product of disputes over territory, robberies of rival drug dealers, or retaliatory violence.
According to the indictment and documents filed in court, the defendants were involved in at least five shootings between August 19, 2014, and September 23, 2014. On August 19 2014, PERCY LACEY, JR., and other members of the 10z and 20z shot and wounded members of the Bloods near the corner of 37th Street East and Chicago Ave S. in the Powderhorn neighborhood of South Minneapolis. LACEY, JR., and his co-conspirators used a Masterpiece 9mm semi-automatic pistol to carry out the shooting. Two days later, CLARENCE DICKENS, JR., engaged in a drive-by shooting targeting a member of the Bloods outside of a McDonald’s at the corner of 2nd Avenue S and E. Lake Street.
According to the indictment and documents filed in court, on August 26, 2014, ANDREW PETERSON and LACEY JR., along with other members of the 10z and 20z, staged a coordinated attack on members of the Bloods. Members of the Bloods were at the Hennepin County Medical Center visiting an injured member of their gang who had been shot earlier that day by members of the 10z during a drive-by shooting. PETERSON stood outside the hospital and attempting to draw Bloods members outside. Once outside of the hospital, LACEY, JR., fired multiple gun shots at the Bloods from across the street.
According to the indictment and documents filed in court, on September 23, 2014, ANTHONY PIERRE DOSS was carrying the same Masterpiece 9mm used by LACEY, JR., during the August 19, 2014, shooting. While in possession of the Masterpiece, DOSS and other members of the 10z were shot at and wounded outside of a Moto Mart gas station at 3301 Hiawatha Avenue in South Minneapolis.
The indictment is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Police Department.
This case is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
Defendant Information:
DANIEL ALFRED ADAMS, a/k/a “Funk,” 29
Minneapolis, Minn.
Charges:
- Conspiracy to possess firearms in furtherance of a drug trafficking crime, 1 count
- Conspiracy to distribute controlled substances, 1 count
- Possession with intent to distribute heroin, 1 count
- Possession of a firearm in furtherance of a drug trafficking crime, 1 count
- Felon in possession of a firearm, 2 counts
ANDREW INDELICATO PETERSON, a/k/a “Boo Boo,” 25
St. Louis Park, Minn.
Charges:
- Conspiracy to possess firearms in furtherance of a drug trafficking crime, 1 count
- Conspiracy to distribute controlled substances, 1 count
- Felon in possession of ammunition, 1 count
PERCY MINIFER LACEY, JR., a/k/a “P3,” 22
Richfield, Minn.
Charges:
- Conspiracy to possess firearms in furtherance of a drug trafficking crime, 1 count
- Conspiracy to distribute controlled substances, 1 count
- Felon in possession of ammunition, 1 count
ANTHONY PIERRE DOSS, a/k/a “Two Tone,” a/k/a “Tony,” 24
Brooklyn Park, Minn.
Charges:
- Conspiracy to possess firearms in furtherance of a drug trafficking crime, 1 count
- Conspiracy to distribute controlled substances, 1 count
- Felon in possession of a firearm, 2 counts
THOMAS DUPREE BENNETT, a/k/a “Deandre Clay,” a/k/a “Trigga,” 27
Minneapolis, Minn.
Charges:
- Conspiracy to possess firearms in furtherance of a drug trafficking crime, 1 count
- Conspiracy to distribute controlled substances, 1 count
- Felon in possession of ammunition, 1 count
PAUL ANTONIO EARLY, a/k/a “Stamps,” a/k/a, “Man Man,” 23
Minneapolis, Minn.
Charges:
- Conspiracy to possess firearms in furtherance of a drug trafficking crime, 1 count
- Conspiracy to distribute controlled substances, 1 count
- Possession with intent to distribute cocaine base, 1 count
CLARENCE JAMES DICKENS, JR., a/k/a “Claro,” a/k/a, “Sneaky,” 24
Roseville, Minn.
Charges:
- Conspiracy to possess firearms in furtherance of a drug trafficking crime, 1 count
- Conspiracy to distribute controlled substances, 1 count
- Felon in possession of a firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sandersville Drug Dealer Sentenced to 30 YearsRead the Press Release
Antonio Donyal Tarver, age 39, from Sandersville, Georgia, was sentenced to 30 years imprisonment August 3, 2015 by the Honorable Leslie J. Abrams in Macon, Georgia. Mr. Tarver was found guilty by a jury on April 8, 2015 of one count of possession with intent to distribute more than 28 grams of cocaine base (“crack”) and one count possession with intent to distribute cocaine.
The Government’s evidence at trial proved that on July 3, 2013, a Georgia State Patrol Trooper attempted to stop Mr. Tarver on Highway 24 in Eatonton, Georgia for speeding. Instead of pulling over, Mr. Tarver led the Trooper on a chase. Mr. Tarver eventually ran a red light and gained some distance on the Trooper. Mr. Tarver then made an abrupt turn into the industrial area of Horton Components where he turned behind a van trailer and abandoned his vehicle. When the Trooper turned the corner by the van trailer, he saw Mr. Tarver’s abandoned vehicle continue forward and crash into a pole. The Trooper was able to locate Mr. Tarver following a foot chase.
A few hours later, an employee at Horton Components contacted the Putnam County Sheriff’s Office about a shopping bag he observed on the roof of the van trailer where Mr. Tarver had abandoned his vehicle. The Putnam County Sheriff’s Office arrived and retrieved the bag, finding what was later confirmed to be 143.33 grams of cocaine base (“crack”) and 292.98 grams of cocaine. The bags that the cocaine was packaged in were processed by the GBI for latent prints and a GBI latent print examiner confirmed that Mr. Tarver’s left ring finger and right thumb print were present on two of the bags.
At the time of this offense, Mr. Tarver was on supervised release following his 2006 plea to Distribution of Cocaine Base in the Middle District of Georgia. Mr. Tarver’s supervised release was revoked as a result of this conviction.
“With the sentencing of Mr. Tarver to federal prison, for the next 30 years there will be one less drug distributor on the streets of Middle Georgia. Whether we get them as a group, or one by one, my office will work to make sure that we use the necessary resources to make sure that drug dealers are in prison, not in our neighborhoods. I want to especially thank the Georgia Bureau of Investigation for the outstanding work on the fingerprint analysis in this case. The successful prosecution of Mr. Tarver’s case was the result of great collaborative work by the Georgia State Patrol, the Georgia Bureau of Investigation, the Putnam County Sheriff’s Office, and the Eatonton Police Department,” said U.S. Attorney Michael Moore.
This case was investigated by the Georgia State Patrol, the Georgia Bureau of Investigations, the Putnam County Sheriff’s Office, and the Eatonton Police Department. The case was prosecuted by Assistant United States Attorneys Beth Howard and Charles Calhoun.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney’s Office at 478-621-2603.
Robertson County, Tennessee, Schools Reaches Settlement with the United States to Further School DesegregationRead the Press Release
Today, the Justice Department reached a settlement agreement with Robertson County (Tennessee) Schools to revise assignment plans for middle and high school students in the district to promote diversity and ensure access to high quality educational programs for all students. As a part of the student assignment plan, the agreement also requires the development of a new, innovative Science, Technology, Engineering and Math (STEM) magnet program at Springfield Middle School, which will be open to and draw students from across the district.
The district, together with an expert consultant, will develop a plan to recruit and enroll a desegregated student population for the STEM magnet, which will open in the 2016-2017 school year. The STEM magnet will receive dedicated resources and provide quality course offerings and facilities such as science labs. Students will be able to progress in their STEM coursework at Springfield High School. If the district is unsuccessful in recruiting a desegregated enrollment to Springfield Middle School through the magnet program, alternative rezoning plans will go into effect.
The district was required to revise its student assignment plans as a condition of the settlement agreement reached with the department on Feb. 2, 2015. That agreement, in addition to the agreement reached today, aims to resolve the department’s determination that the district had yet to fulfill its desegregation obligations in the areas of student assignment and school construction.
“I commend the Robertson County school board for unanimously approving this agreement to advance educational opportunities for all students,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department is committed to working with Robertson County Schools to effectively implement the agreement and fulfill the district’s obligations to desegregate.”
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Repeat Identity Thief Sentenced to 4 Years in Prison for Sophisticated Scheme to Steal Unemployment BenefitsRead the Press Release
A 54-year-old Seattle man was sentenced today in U.S. District Court in Seattle to 48 months in prison for theft of government funds and aggravated identity theft, announced U.S. Attorney Annette L. Hayes. Using a sophisticated scheme based on his training as an accountant, GEORGE VERKLER created fake businesses and stolen identities to collect unemployment benefits from both the Washington and Oregon Employment Security departments. At sentencing U.S. District Judge John C. Coughenour imposed three years supervised release with the condition that VERKLER get mental health treatment.
According to records filed in the case, between February 2008 and October 2014, VERKLER created three fake Washington companies: #1 Accountant Incorporated, Smart Buys at Stupid Prices and Associated Grocers. VERKLER used the names and Social Security numbers of real people when creating the master business applications for these companies. Over the years in question VERKLER claimed to be employed by the companies and then laid off so that he could collect $97,396 in unemployment benefits from the Washington State Employment Security Department.
From July 2010 until October 2014, VERKLER created a fictitious Oregon business called Fair Accounting, and filed quarterly tax reports using the stolen names, Social Security numbers and dates of birth of four real people. Then claiming the purported employees had been laid off, VERKLER filed benefit claims under each victim’s name and stole $139,932 in unemployment benefits from the Oregon Employment Security Department.
The case came to the attention of law enforcement when Washington State tried to collect taxes from one of the fictitious companies. The total loss to the employment security programs in both states is $237,328.
This is a second federal conviction for VERKLER, who in 1999 was convicted of stealing the identities of 91 different people to fraudulently obtain tax return refunds. In 2001 he was sentenced to 15 months in prison for that crime.
In their filings with the court, prosecutors noted that this crime occurred in a context where the financial costs of identity theft top $24.7 billion. In 2012 an estimated 16.6 million people in the U.S. were victims of identity theft.
The case was investigated by the Department of Labor Office of the Inspector General (DOL-OIG). The case is being prosecuted by Assistant United States Attorney Francis Franze-Nakamura.
Providence Landlord Pleads Guilty to Arson Related Charge in Arson-for-Profit SchemeRead the Press Release
PROVIDENCE, R.I. – Rony Metellus, 52, of Providence, pleaded guilty in federal court in Providence on Monday to setting fire on July 23, 2014, to an occupied three family tenement building he owned in an effort to benefit by the collection of insurance payments, announced United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Providence Public Safety Commissioner Steven M. Paré and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Metellus pleaded guilty to one count of defrauding an insurance company – wire fraud.
According to information presented to the court, an investigation by the Providence Fire Department Arson Squad, the Providence Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of the Rhode Island Attorney General’s Office, determined that an early morning fire on July 23, 2014 to an occupied three family tenement at 346 Admiral Street in Providence was intentionally set. The investigation determined that the building’s owner, Rony Metellus, intentionally set fire to the building in order to collect insurance payments.
At the time of the fire, three adults and three children were living in a first floor apartment. The second and third floors, including the apartment where the fire was intentionally set, were vacant. The building sustained significant damage.
At the time of his guilty plea, Metellus admitted to the court that he drove from his Providence home at approximately 3:30 in the morning on July 23, 2014, set fire to the Admiral Street building and quickly returned home as Providence fire apparatus were responding to the fire.
Surveillance videos reviewed by investigators captured Metellus leaving his home a mile away from his rental property, arriving and then departing eight minutes later from the vicinity of his property, and then returning to his home as Providence firefighters were responding to a reported fire at his Admiral Street property.
Metellus admitted to the court that he hired a public adjuster to represent him in filing an insurance claim for damages to the burned building. Records indicate a claim was filed with the insurer, Lloyd’s of London. The defendant’s claim was filed through a local insurance agency.
Metellus, who has been detained in federal custody since his arrest on August 8, 2014, is scheduled to be sentenced on November 3, 2015.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland, with the assistance of Assistant U.S. Attorney Milind M. Shah.
Pine Ridge Woman Sentenced for Involuntary ManslaughterRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, woman convicted of Involuntary Manslaughter was sentenced on July 20, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Sarah Lilly Brown Eyes, age 57, was sentenced to 37 months in custody, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
In June 2014, at Pine Ridge, Brown Eyes, while under the influence of alcohol, ran over a man with a pickup truck and killed him.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Brown Eyes was immediately turned over to the custody of the U.S. Marshals Service.
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Pediatric Services of America and Related Entities to Pay $6.88 Million to Resolve False Claims Act AllegationsRead the Press Release
SAVANNAH – The U.S. Attorney’s Office announced that Pediatric Services of America Healthcare, Pediatric Services of America, Inc., Pediatric Healthcare, Inc., Pediatric Home Nursing Services (collectively, “PSA”), and Portfolio Logic, LLC agreed to pay $6.88 million ($6,882,387) to resolve allegations that PSA, a provider of home nursing services to medically fragile children, knowingly (1) failed to disclose and return overpayments that it received from federal health care programs such as Medicare and Medicaid, (2) submitted claims under the Georgia Pediatric Program for home nursing care without documenting the requisite monthly supervisory visits by a registered nurse, and (3) submitted claims to federal health care programs that overstated the length of time their staff had provided services, which resulted in PSA being overpaid.
United States Attorney for the Southern District of Georgia, Edward J. Tarver said, “The failure to report and return a known overpayment is a serious offense that ultimately drives up the costs of health care for all of us. This U.S. Attorney’s Office and its federal and state law enforcement partners will continue to work together to ensure that health care providers, who receive millions of tax dollars every year, play by the rules and do not waste critical program funds.”
“Participants in federal health care programs are required to actively investigate whether they have received overpayments and, if so, promptly return the overpayments,” said United States Attorney for the Northern District of Georgia John Horn. “This settlement is the first of its kind and reflects the serious obligations of health care providers to be responsible stewards of public health funds.”
“The healthcare system is trust-based and providers who willfully ignore their fiscal responsibilities will be held accountable for their actions. This precedent-setting case should send the message that we will not tolerate any provider keeping American taxpayer dollars unjustly. Special thanks to the United States Attorney's Office for recognizing the importance of this case and partnering with us to pursue justice,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.
John F. Khin, Special Agent in Charge, DCIS-Southeast Field Office, stated, “This collaborative investigative effort reflects the Defense Criminal Investigative Service’s ongoing commitment to ensuring accountability throughout the military health care system, protecting the integrity of Department of Defense programs, and preserving precious taxpayer dollars.”
This is the first settlement under the False Claims Act involving a health care provider’s failure to investigate credit balances on its books to determine whether they resulted from overpayments made by a federal health care program. Under section 6402 of the Affordable Care Act, health care providers must report and return any overpayments by the later of (i) 60 days after the overpayment was identified or (ii) the date any corresponding cost report is due (if applicable).
PSA had been maintaining numerous credit balances on its books that related to claims it had submitted to various federal health care programs, some of which had been on PSA’s books for several years. Additionally PSA wrote off and absorbed credit balances that had resulted from overpayments into their revenue because they had not investigated the reason for the credit balances before doing so. At the government’s request, PSA cooperated with a joint audit of the credit balances on its books in order to identify all outstanding overpayments.
As part of the settlement, PSA has agreed to enter into a corporate integrity agreement with the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), which will require PSA to put in place procedures and reviews to avoid and promptly detect conduct similar to that which gave rise to the settlement.
The settlement resolves allegations filed by Yvette Odumosu and Sheila McCray, former employees of PSA, under the qui tam or whistleblower provisions of the False Claims Act, which authorize private parties to sue for false claims on behalf of the United States and share in the recovery. Ms. Odumosu’s lawsuit was filed in the Northern District of Georgia and is captioned U.S. ex rel. Yvette Odumosu v. Pediatric Services of America Healthcare, No. 1:11-CV-1007-AT and Ms. McCray’s lawsuit subsequently was filed in the Southern District of Georgia and is captioned United States ex rel. Sheila McCray, et al. v. Pediatric Services of America, Inc., Pediatric Services of America, Pediatric Healthcare, Inc., Pediatric Home Nursing Services, collectively d/b/a PSA Healthcare; and Portfolio Logic, LLC, No. CV413-12. Ms. Odumosu and Ms. McCray will receive a share of the settlement payment that resolves the qui tam suits that they filed in the amount of $1.1 million ($1,121,729). The claims settled in the civil settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Southern District of Georgia, the U.S. Department of Health & Human Services, U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, the Medicaid Fraud Control Unit of the Georgia State Attorney General’s Office, and the National Association of Medicaid Fraud Control Units, comprised, in part, of the 20 states that are parties to the settlement.
The civil settlement was reached by Assistant United States Attorneys Neeli Ben-David, Darcy Coty and Charles Mulaney. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
North Carolina Man Indicted for Receiving and Selling Misbranded Silicone for Buttocks InjectionsRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Vinnie Lysander Taylor, a/k/a “T,” age 44, of Wilmington, North Carolina, Pennsylvania and Georgia, on charges of receiving and selling industrial grade silicone, but representing to customers that it was medical grade silicone. The indictment was returned on August 3, 2015.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to the nine-count indictment, the only injectable silicone products approved or cleared for marketing by Food and Drug Administration (FDA) were ophthalmic devices for the treatment of eye injuries, such as, for example, detached retinas. These products were regulated by FDA as prescription medical devices.
The indictment alleges that Taylor obtained food grade liquid silicone from a company in Pennsylvania, which was produced and intended to be used as a lubricant and release agent in, among other things, food processing, food treatment, and food transportation and shipment. Taylor traveled to Prince George’s County, Maryland, and elsewhere, and in exchange for money, injected the food grade silicone into the buttocks of customers who wanted larger or fuller buttocks. When used in this fashion, liquid silicone is a medical device subject to regulation by the FDA.
According to the indictment, from approximately September 30, 2008 through December 2, 2014, Taylor placed approximately 180 orders for gallon jugs of liquid silicone with the company that produced the food grade liquid silicone. Taylor stored the liquid silicone in plastic bottles that were not labeled nor approved by the FDA for that purpose. Therefore, the liquid silicone was adulterated and misbranded.
The indictment alleges that Taylor, who was not a licensed medical practitioner, falsely represented to customers and victims to whom he administered liquid silicone injections that the procedure was safe. In addition, Taylor falsely told customers that he used medical grade silicone, when in fact the silicone was not medical grade silicone. Between September 2013 and September 2014, Taylor allegedly injected seven women in Prince George’s County with food grade liquid silicone in exchange for pay.
Taylor faces a maximum sentence of three years in prison for each of nine counts of receipt of a misbranded and adulterated device for delivery for pay with intent to defraud or mislead. An initial appearance has not yet been scheduled for Taylor. Taylor is currently detained on related state charges
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FDA Office of Criminal Investigations’ Metro Washington Field Office, the Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston and William D. Moomau, who are prosecuting the case.
New Haven Crack Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that LAMAR JONES, also known as “Cream,” 31, of New Haven, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. Approximately 100 individuals were convicted of federal charges as a result of the investigation.
According to court documents and statements made in court, Kevin Wilson, also known as “Nature,” operated a large-scale cocaine, crack cocaine and heroin trafficking operation, primarily in the Dwight/Chapel area of New Haven. Wilson supplied JONES with distribution quantities of crack cocaine, which JONES then sold to his own customers.
JONES was arrested on May 17, 2012, and was released on bond in September 2012. On August 30, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of JONES has been detained in state custody since September 21, 2014, when he was arrested by New Haven Police on charges of assault in the first degree, home invasion (two counts), larceny in the fifth degree, assault in the third degree, and interfering.
Chief Judge Hall imposed the federal sentence to run consecutively to any sentence imposed as a result of the pending state charges.
Wilson has pleaded guilty and awaits sentencing.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
Nashoba Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DERRICK CASEY FRY, a/k/a Derrek Casey Fry, age 35, of Nashoba, Oklahoma, pled guilty to ASSAULT RESULTING IN SERIOUS BODILY INJURY, in violation of Title 18, United States Code, Sections 1153, 1151 and 113(a)(6), punishable by up to 10 years imprisonment, up to a $250,000.00 fine or both.
The charge is a result of an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The defendant was indicted in July, 2015.
The Indictment alleged that from on or about the 23rd day of June, 2015, in the Eastern District of Oklahoma, in Indian Country, within the special maritime and territorial jurisdiction of the United States, the defendant, DERRICK CASEY FRY, a/k/a Derrek Casey Fry, an Indian, assaulted James Belvin, resulting in serious bodily injury.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered a presentence report to be completed. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
Mission Man Sentenced for Third Degree Burglary, Aiding and AbettingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Third Degree Burglary and Aiding and Abetting was sentenced on July 27, 2015, by U.S. District Judge Roberto A. Lange.
Preston White Feather, age 19, was sentenced to 11 months in custody with credit for time served, 4 months in a Residential Re-Entry Center, 2 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and $8,638.31 restitution joint and several.
White Feather was indicted by a federal grand jury on November 13, 2014. He pled guilty on March 26, 2015.
On or about August 20, 2014, White Feather, co-defendant Nicola Black Lance, and two juveniles, broke into the Todd County government building in Mission and stole property, including firearms held in the Todd County Sheriff’s office, as well as some marijuana and cocaine. The group caused property damage to the building. Some of the co-defendants came up with the idea, some took part in the burglary, and all aided and abetted the burglary.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
White Feather was immediately turned over to the custody of the U.S. Marshals Service.
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Methamphetamine Gets Local Woman 10 Years in Federal PrisonRead the Press Release
VICTORIA, Texas - A local woman has been ordered to federal prison for 10 years following her conviction of possession with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Lynn Denise Bilecki, 46, of Victoria, pleaded guilty in December 2014.
Today, Senior U.S. District Judge John D. Rainey sentenced Bilecki to 120 months imprisonment to be followed by five years of supervised release.
On July 15, 2014, officers from the Special Crimes Unit of the Victoria Police Department (VPD) executed a state narcotics search warrant at Bilecki’s apartment. At that time, authorities seized methamphetamine, a digital scale, U.S. currency and a pistol grip shotgun. Laboratory analysis determined that the amount of pure methamphetamine seized was 129 grams.
In federal custody since her arrest on July 30, 2014, she will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The investigation was conducted by Homeland Security Investigations and VPD.
Assistant U.S. Attorney Lance Watt is prosecuting the case.
Media Advisory: Child Exploitation, Human Trafficking, Drug Abuse and Working with Crime VictimsRead the Press Release
Dubuque, Iowa – The “Excellence in Victim Services” conference co-sponsored by seven U.S. Attorneys’ Office and the Iowa Organization for Victim Services starts on Wednesday. U.S. Attorney Kevin W. Techau will join the conference and make some opening remarks.
The conference’s keynote speaker is an Assistant U.S. Attorney from Michigan, himself a victim of childhood sexual abuse at the hands of a youth soccer coach. During the plenary session on the last day of the conference, another survivor of childhood abuse will relay his story of resilience and redemption as he overcame severe hardships to become a successful businessman and motivational speaker.
The media is invited to attend the opening and plenary sessions.
Event Details
When: Wednesday - Friday, August 5th – 7th, 2015.
Where: Grand River Center, 500 Bell St, Dubuque, Iowa.
Time: Opening Session & Keynote: August 5th, 10:00 a.m. - Noon;
Plenary Session & Speaker: August 7th, 10:15 – 11:45 a.m.
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Man from Mexico Sentenced for Illegal Reentry After DeportationRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Mexican Citizen convicted of Illegal Reentry After Deportation was sentenced on July 28, 2015, by U.S. District Judge Roberto A. Lange.
Pedro Reyes-Moreno, age 28, was sentenced to time served of 203 days, and a special assessment of $100 to the Federal Crime Victims Fund.
Reyes-Moreno was indicted by a federal grand jury on December 2, 2014. He pled guilty on June 3, 2015.
The conviction stems from an incident on or about December 1, 2014, when Reyes-Moreno, after having been previously deported from the United States in November of 2006 and June of 2012, was found back in the country. Reyes-Moreno illegally re-entered the United States at unknown dates. Reyes-Moreno did not obtain the consent of the Secretary of the United States Department of Homeland Security, and the Attorney General of the United States.
This case was investigated by the Immigration and Customs Enforcement. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Reyes-Moreno was immediately turned over to the custody of the U.S. Marshals Service due to a detainer from the Immigration and Customs Enforcement.
Man Charged with Firearm and Cocaine OffensesRead the Press Release
St. Croix, USVI – Dwayne Friday, 36, made his initial appearance in District Court Tuesday before U.S. Magistrate Judge George W. Cannon after being charged in a three-count information with Distribution of Cocaine, Possession of Cocaine with Intent to Distribute, and Carrying a Firearm During a Drug Trafficking Crime, United States Attorney Ronald W. Sharpe announced. Friday was detained pending trial.
If convicted, Friday faces a maximum sentence of 20 years in prison on the cocaine charges and life in prison on the firearm charge.
United States Attorney Sharpe reminds the public that an Information is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case is the result of a joint investigation by the Virgin Islands Police Department and the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Alphonso Andrews.
Local Immigration Lawyer Pleads Guilty to Aggravated Identity TheftRead the Press Release
DALLAS — Sherin Thawer, a Dallas attorney, appeared in federal court this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to a federal felony offense stemming from her work in representing aliens, that is, non-U.S. citizens, before the U.S. Department of Homeland Security (DHS), U.S. Citizen and Immigration Service (USCIS), announced U.S. Attorney John Parker of the Northern District of Texas.
Thawer, 45, pleaded guilty to one count of aggravated identity theft, and she faces a mandatory penalty of two years in federal prison and a $250,000 fine. She was initially on pre-trial release following her arrest on an indictment in February 2015; however, she has been in custody since June 15, 2015, when the Court revoked her pre-trial release after finding she violated its conditions by continuing to practice immigration law. A sentencing date has not been set.
According to documents filed in the case, Thawer represented aliens before USCIS when they were applying for various types of visas to enter or remain in the U.S., including through a U Nonimmigrant Status or U-Visa. To be eligible for a U-Visa, the alien must have been a victim of a certain crime, suffered mental or physical abuse because of the crime, and helped law enforcement in the investigation and/or prosecution of the crime. In addition to the U-Visa application, applicants must submit a Law Enforcement Certification form completed and signed by the certifying official for the law enforcement agency that investigated and/or prosecuted the crime for which the alien was a victim.
On approximately March 21, 2012, Thawer, without authority, knowingly used the name and badge number of a specific police officer to complete the Law Enforcement Certification form that was submitted with a U-Visa application. She knew the officer had not completed the form and that his signature on the form was forged.
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Irving Police Department, and USCIS investigated. Special Assistant U.S. Attorney Dan Gividen and Assistant U.S. Attorney Aaron Wiley are prosecuting.
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Lebanon Woman Pleads Guilty to $415,000 Investment Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lebanon, Mo., woman pleaded guilty in federal court today to a Ponzi scheme in which she stole more than $415,000 from victim investors.
Terina K. Carney, also known as Terina Humphrey, 49, of Lebanon, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges her with wire fraud, money laundering and failure to file a tax return.
By pleading guilty today, Carney admitted that she defrauded numerous investors, who lost a total of $415,722 as a result of Carney’s wire fraud scheme from December 2012 to January 2015.
Carney was the owner of Riverside Lease, LLC. Carney told investors their money would be used as an advance payment on behalf of a third-party business, in order to allow the business to continue operating while it secured long-term funding from a bank. Carney promised to obtain a high rate of return for investors, from 10 percent to 30 percent on top of their original investment. Investors were told that, once the business received its long-term funding from the bank, they would receive their original investment plus interest from those funds. Investors were also told that Riverside Lease held their money and there was little to no risk of the investor losing their principal investment because the third-party business never had direct access to their money.
After reviewing bank account information, agents determined that once the investor’s money was received, the money was never used to provide short-term financing for any other business. Based on financial records, Carney actually used the money to pay other investors or to pay for personal expenses. Agents also determined that the monthly statements sent to investors, which claimed the amount of money held within their individual investment account, were also false as the bank accounts were repeatedly emptied of any monies to pay other investors or unrelated bills.
Carney never registered with the State of Missouri as an investment adviser, investment adviser representative, broker-dealer, broker-dealer agent, or issuer agent.
Carney also admitted that she deposited $520,119 from victim investors during 2012, 2013 and 2014, but she did not file federal income tax returns for any of these years.
Under federal statutes, Carney is subject to a sentence of up to 31 years in federal prison without parole, plus a fine up to $525,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI, IRS-Criminal Investigation and the Missouri Secretary of State’s Office.
KC Man Sentenced for Robbing Raytown BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing a Raytown, Mo., bank.
Robert T. Morris, 32, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 19 months in federal prison without parole. The court also ordered Morris to pay $2,025 in restitution.
On March 26, 2015, Morris pleaded guilty to stealing $2,025 from First Federal Bank, 9330 E. Gregory, Raytown. Co-defendant Anthony Beeks, 53, of Kansas City, also pleaded guilty and is scheduled to be sentenced on Aug. 13, 2015.
On April 24, 2014, Morris entered the bank, approached the teller counter and provided the teller with a demand note, which was similar in verbiage to the following, “YOU KNOW WHAT THIS IS, HURRY UP, PUT THE MONEY IN THE BAG, NO FUNNY BUSINESS, HURRY UP.” The teller did not have access to any money, but walked over to another teller and showed her the demand note. The second teller then provided Morris with $2,025. Morris put the stolen money in a manila envelope and fled from the bank. The demand note was left behind.
A witness told law enforcement officers that Morris had admitted his role in the robbery to him. The witness also recognized Morris from bank surveillance photos that were posted on a media Web site. Over the course of several days, law enforcement officers conducted surveillance on Morris and Beeks. During this time frame, officers observed what they believed to be multiple “casings” of various banks in the Kansas City metropolitan area. On May 22, 2014, a federal search warrant was executed on the vehicle Morris and Beeks had been driving. Morris was arrested the same day.
This case is being prosecuted by Special Assistant U.S. Attorney Adam Caine. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Judge Sentences North Huntingdon Man Convicted of Bankruptcy Fraud to Two Years in Federal PrisonRead the Press Release
PITTSBURGH - A resident of North Huntingdon, Pa., has been sentenced in Pittsburgh, on August 3, 2015, on charges of bankruptcy fraud, concealment of assets, and making false statements under oath, United States Attorney David J. Hickton announced today.
Michael J. Free, 62, had been charged in a six-count indictment that was tried to a jury before United States District Court Judge Mark R. Hornak. The jury returned guilty verdicts on all six counts in December of 2014. Judge Hornak sentenced Free to two years in prison and three years of Supervised Release.
Prior to imposing sentence Mr. Free took the witness stand and was questioned by his own attorney and government counsel as well as by Judge Hornak. Judge Hornak commented that he found none of Free’s testimony to be credible. He commented that Free’s answers were evasive and nonsensical and he indicated that Free had tried to give the court “the run around.”
According to the evidence presented during the trial, Free submitted fraudulent documents during a bankruptcy that he filed in July of 2010. Among the matters for which he was convicted were filing a false Schedule A that failed to identify to the Bankruptcy Court a residence he owned in Fayette County as well as a false Schedule B that failed to list the majority of the guns that Free had in a large collection of World War II era machine guns and rifles. The jury heard that at one point the Trustee supervising Free’s bankruptcy learned that Free was selling some of his guns through internet advertising. After the Trustee reported this activity to the Court the Bankruptcy Court judge ordered Free to file an accounting with the Court listing all the guns sold and how much he had received for each sale. Free filed yet another false document claiming that nothing had been sold and that there was nothing to account for. The jury also found Free guilty for lying under oath at a meeting of creditors held during the Bankruptcy process.
The Federal Bureau of Investigation conducted the investigation, based on a referral by the Office of the United States Bankruptcy Trustee.
Inmate Sentenced to Prison for Sending Letter to the White House Threatening the President and FamilyRead the Press Release
PITTSBURGH -A Uniontown resident currently incarcerated for state convictions has been sentenced in federal court to 30 months imprisonment, 15 months of which will be served consecutive and 15 months will be served concurrent to his state sentence for child molestation, among other crimes, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr., imposed the sentence on Joseph H. Savage, 34.
According to information presented to the court, on or about Oct. 24, 2012, while incarcerated and awaiting disposition on state charges, Savage wrote a graphic letter to the White House threatening to kill the President and the President’s family. Although Savage addressed the letter to 1400 Pennsylvania Ave. in Washington, D.C., the White House (located at 1600 Pennsylvania Ave.) still received it and turned it over to the Secret Service.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Savage.
Indicted Business Executive Arrested on False Invoicing SchemeRead the Press Release
HOUSTON – The owner of Tinkle Management Inc. (TMI) has been charged in a 13-count federal indictment alleging a scheme in which he billed for $15 million in supplies that were never delivered, announced Kenneth Magidson.
John Blake Tinkle, 59, of Tomball, is expected to make his initial appearance before U.S. Magistrate Judge Mary Milloy at 2:00 p.m. today. A federal grand jury returned the 13-count indictment under seal on July 21, 2015, which was unsealed today upon Tinkle’s arrest.
Tinkle is charged with nine counts of wire fraud and four counts of money laundering.
The Indictment alleges that from 2008 through 2015, Tinkle falsely invoiced Houston-based Westlake Chemical Corporation for approximately $15 million in shipping supplies that TMI never delivered. TMI was Westlake’s supplier of plastic shipping bags that Westlake used to ship its chemical products internationally. According to the indictment, TMI delivered the shipping bags to Packwell Inc., a packaging and logistics company in La Porte, who used the bags to package Westlake’s chemical products and ship them through the Houston ship channel. In addition to invoicing Westlake for bags that had actually been delivered, Tinkle allegedly submitted false invoices to Westlake for deliveries of bags to Packwell that, in reality, had not occurred.
The charges indicate Tinkle supported his false invoices to Westlake by attaching Packwell receiving reports that Tinkle altered to purportedly show Packwell had received them, when they actually had not. Relying on the false TMI invoices and fake Packwell receiving reports, Westlake paid TMI millions of dollars for bags that Westlake and Packwell never received.
If convicted of any of the wire fraud counts, Tinkle faces up to 20 years in federal prison, while the money laundering carries a possible 10-year-term. Both crimes could also result in a possible $250,000 maximum fine.
The investigation leading to the charges was conducted by the FBI and IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Robert S. Johnson of the Southern District of Texas.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Illegal Alien Sentenced to Nearly Four Years in PrisonRead the Press Release
TULSA, Okla.—United States District Court Chief Judge Gregory K. Frizzell sentenced Ubaldo Esparza-Ortiz, 28, to 45 months in prison for illegal reentry into the United States, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. Chief Judge Frizzell also imposed three years of supervised release following Esparza-Ortiz’s prison sentence.
On January 15, 2015, United States Immigration and Customs Enforcement (ICE) agents discovered Esparza-Ortiz was illegally in the country after he had been arrested by Tulsa police officers for domestic assault and battery with a dangerous weapon. This was Esparza-Ortiz’s fourth illegal reentry into the United States. He has also been convicted multiple times for domestic violence in Tulsa.
This case was investigated by ICE. Assistant United States Attorney Neal C. Hong prosecuted the case.
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Idabel Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JIMMY LEWIS PERKINS, age 50, of Idabel, Oklahoma, pled guilty to FAILURE TO REGISTER AS SEX OFFENDER, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
The charge is a result of an investigation by the United States Marshal Service. The defendant was indicted in June, 2015.
The Indictment alleged that from a date uncertain in or about 2013, the exact date being unknown to the Grand Jury, until on or about March 12, 2015, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Oklahoma, in McCurtain County, on or about September 8, 2004, for the offense of Lewd Molestation, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered a presentence report to be completed. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
Fort Thompson Man Sentenced for AbusiveRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man convicted of Abusive Sexual Contact by Force was sentenced on July 29, 2015, by U.S. District Judge Roberto A. Lange.
Dillon Bagola, age 22, was sentenced to 10 years in custody, followed by 5 years of supervised release, $84.60 in restitution, and a special assessment of $100 to the Federal Crime Victims Fund.
Bagola was indicted by a federal grand jury on August 13, 2014. He pled guilty on March 26, 2015.
The conviction stems from an incident on or about August 3, 2014, when the victim was attending a birthday party. After the party, Bagola was to give her a ride home, but instead drove out to North Shore road in Fort Thompson, pulled over and forced the juvenile victim to engage in a sexual act with him.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Bagola was immediately turned over to the custody of the U.S. Marshals Service.# # #
Fort Hall Man Indicted for MurderRead the Press Release
POCATELLO – Joaquin Broncho, 18, of Fort Hall, Idaho, has been indicted in the August 29, 2014, stabbing death of Joey Runninghorse, U.S. Attorney Wendy J. Olson announced.
Broncho, also known as Joaquin Dancing Thunder Bluehorse, was indicted on a charge of second degree murder by the federal grand jury in Pocatello on July 28, 2015. Broncho was arraigned today in U.S. District Court before U.S. Magistrate Judge Mikel H. Williams where Broncho entered a not guilty plea, and the case was set for jury trial in Pocatello on September 21, 2015.
Broncho is alleged to have stabbed the victim Joey Runninghorse with a knife on the Shoshone Bannock Indian Reservation. Broncho was previously charged as a juvenile in this case, but his case was transferred to adult court by Chief U.S. District Judge B. Lynn Winmill.
Second degree murder is punishable by up to life imprisonment and a fine of up to $250,000.
The case is being investigated by the Federal Bureau of Investigation (FBI), and the Fort Hall Police Department.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former letter carrier sentencedRead the Press Release
Former U.S. Postal Service letter carrier Philip A. Rizk was sentenced to two years of probation, fined $1,000 and ordered to pay $27,798 in restitution for working under-the-table at a bingo hall while receiving worker’s compensation, law enforcement officials said.
Rizk, of Middleburgh Heights, pleaded guilty earlier this year to two counts of making false statements to obtain federal compensation.
U.S. Postal Service Office of Inspector General Special Agent in Charge Monica Weyler stated: “Workers compensation benefits costs the Postal Service over $1 billion per year. The majority of that money is paid to injured workers that legitimately deserve it. However, a small number of individuals choose to not follow the rules and commit fraud against the system, as in this case. U.S. Postal Service Office of Inspector General special agents vigorously investigate allegations of workers compensation fraud, and seek prosecution and termination of benefits for individuals that do not merit compensation. To report allegations of postal employees committing workers compensation fraud, contact the USPS OIG at www.uspsoig.gov or 888-USPS-OIG.”
The case was prosecuted by Assistant U.S. Attorney Marisa Darden following an investigation by the U.S. Postal Service Office of Inspector General.
Former Pine Lawn Lieutenant Indicted on Federal ChargesRead the Press Release
St. Louis, MO – An indictment was unsealed earlier today charging former Pine Lawn Lieutenant STEVEN BLAKENEY with criminal civil rights charges arising from his arrest in 2013 of a candidate for the office of Mayor of the City of Pine Lawn.
According to the indictment, on March 31, 2013, Blakeney, while a police officer with the City of Pine Lawn Police Department, conspired with others to cause the arrest of a mayoral candidate based on false allegations and without probable cause. Blakeney ordered another person to falsely report that the mayoral candidate had stolen a campaign poster from a local business and then arranged for the candidate to be arrested.
United States Attorney Richard Callahan observed that the citizens of Pine Lawn deserved better of their public officials than they had been receiving and encouraged them to become more involved in their local government.
Blakeney was indicted last week by a federal grand jury on one felony count of conspiracy against rights, one count of deprivation of rights under color of law and one count of falsification of records. The indictment remained under seal until Blakeney was taken into custody today by the FBI. Blakeney will have an initial appearance today before a United States Magistrate Judge.
If convicted, these charges carry a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Former Deputy Sheriff in Madison County, Alabama, Charged with Civil Rights Violations and Obstruction of JusticeRead the Press Release
The Justice Department announced that Justin Watson, 29, a former deputy with the Madison County Sheriff’s Office, turned himself in today following an indictment on July 30, 2015, when he was charged with deprivation of rights under color of law for allegedly assaulting and injuring R.B. on Aug. 22, 2012. The indictment charges Watson with a second civil rights violation for allegedly conducting an unlawful traffic stop of R.B.
Watson also has been charged with three counts of obstruction of justice. The indictment alleges that Watson obstructed justice by providing false and misleading testimony in a criminal proceeding in state court and by corruptly persuading two witnesses.
Watson faces a maximum sentence of eleven years in prison for the two civil rights charges and sixty years in prison for the three obstruction counts.
The investigation by the Huntsville Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian of the Justice Department and Assistant U.S. Attorney Mary Stuart Burrell of the U.S. Attorney’s Office for the Northern District of Alabama.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty.