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4 August 2015
Former Alabama Jail Employee Sentenced for Stealing Identities as Part of Tax Refund Fraud SchemeRead the Press Release
Montgomery, Ala. – A Troy, Alabama, man was sentenced to prison yesterday in U.S. District Court for the Middle District of Alabama for his involvement in a stolen identity tax refund fraud scheme, announced U.S. Attorney George L. Beck Jr. of the Middle District of Alabama, and Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division.
Devon Tucker, 31, a former jailer of the Troy Police Department at the city jail, pleaded guilty earlier this year to one count of conspiracy to defraud the United States and one count of aggravated identity theft. U.S. District Judge Callie V.S. Granade sentenced Tucker to serve 32 months in prison and three years of supervised release, and ordered him to pay $13,162 in restitution to the Internal Revenue Service (IRS).
According to court documents, from January 2014 to January 2015, Tucker stole the personal identification information of approximately 150 individuals who were processed into the Troy city jail. Tucker provided those identities to his co-conspirators for the purpose of filing false federal income tax returns claiming fraudulent refunds from the U.S. Treasury. Tucker was paid in pre-paid debit cards in the names of the identity theft victims for his involvement in the scheme.
“The Tax Division will vigorously pursue and prosecute government employees who abuse their positions by exploiting their access to personal information to victimize members of the community and steal from the U.S. Treasury,” said Acting Assistant Attorney General Ciraolo.
“It is always a sad day when a law enforcement officer sworn to uphold the law, takes advantage of his position for his own personal gain,” stated U.S. Attorney Beck. “This District will continue to vigorously prosecute those who steal identities and file fraudulent tax returns, regardless of where they are employed or what position they hold.”
U.S. Attorney Beck and Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Gregory P. Bailey and Michael P. Hatzimichalis of the Tax Division and Assistant U. S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted this case.
First of Three Co-Defendants Pleads Guilty to Wire Fraud and Possession of Counterfeit Credit CardsRead the Press Release
BOISE – Javier Miranda-Molina, 22 of Sonora, Mexico, pleaded guilty today in federal court to one count of wire fraud and one count of possession of fifteen or more counterfeit credit cards, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Miranda-Molina and his co-defendants, Irving Gonzalez-Bocanegra and Rafael Perez, were present and traveling together in Boise on March 31, 2015, for the purpose of using counterfeit credit cards to make fraudulent purchases of merchandise and gift cards. The defendants engaged in a number of transactions, at a variety of stores, using credit cards the defendants knew to be counterfeit. The defendants fraudulently obtained merchandise valued at approximately $5,117.63.
Prior to arriving in Boise, on March 29 and 30, 2015, the defendants engaged in similar fraudulent transactions in Montana and obtained merchandise valued at approximately $8,184.01.
When arrested in Boise, the defendants were working together to package and ship a variety of merchandise purchased with counterfeit credit cards, such as GoPro Hero 4 Cameras, Samsung Galaxy Nooks, and video game systems. They had in their joint possession a number of counterfeit credit cards. These included: approximately eighty-four counterfeit credit cards taped into the pages of a magazine; three counterfeit credit cards recovered from the trash, and three counterfeit credit cards found in the driver’s side door pocket of their rental car. Each of these counterfeit cards contained one of the defendant’s names embossed on the front of the card and a real but unauthorized account number encoded to the magnetic strip on the back of the card. Miranda-Molina agreed to the forfeiture of, and to abandon any interest in, all credit cards, gift cards, merchandise, and other items seized at his arrest.
The defendants were charged with wire fraud because all of the described transactions resulted in wire communications that were foreseeable to the defendants, in particular, interstate transmissions by wire of information from the point of sale terminals in the stores to the credit card payment processers and to the account-issuing banks located in different states.
“This case demonstrates how federal and local law enforcement cooperate with Idaho businesses to protect business integrity and consumer confidence from the costs and victimization imposed by fraud.” said Olson.
Wire fraud is punishable by a term of imprisonment of up to twenty years, a term of supervised release of not more than three years, a maximum fine of $250,000.00, and a special assessment of $100. Possession of 15 or more counterfeit and unauthorized access devices is punishable by a term of imprisonment of up to ten years, a term of supervised release of not more than three years, a maximum fine of $250,000.00, and a special assessment of $100.
Miranda-Molina’s sentencing is set before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise on October 14, 2015, at 3:30.
The co-defendants Irving Gonzalez-Bocanegra, 25, of Hermosillo, Mexico, and Rafael Perez, 31, of Guaymas, Mexico, are set for plea hearings respectively on August 6 and 11, 2015.
The case was investigated by the United States Secret Service and the Boise Police Department.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—The results of the August 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Vysean Leandre Embry and Jermaine Mayes. Drug Conspiracy, Distribution of Cocaine Base, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Embry, 31, and Mayes, 31, both of Tulsa, are charged with conspiring to distribute crack cocaine, distributing crack cocaine, and possessing a firearm in furtherance of a drug trafficking crime. If convicted, the defendants face the statutory maximum penalty of 20 years in prison and a $1,000,000 fine for the drug conspiracy and distribution of cocaine base charges; and a statutory minimum penalty of five years and up to life in prison, to run consecutively with any other sentence, and a $250,000 fine for the firearm charge. The FBI and the Tulsa Police Department are the investigating agencies.
Mary Sue Russell. Embezzlement of Government Money and Property and False Statements. Russell, 53, of Miami, Oklahoma, is charged with embezzling over $1,000 from the U.S. Department of Interior, Bureau of Indian Affairs, from May 2012 to October 2014. In addition, Russell is charged with three-counts of providing false statements to a BIA Special Agent. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine for embezzling over $1,000; and a maximum penalty of five years in prison and a $250,000 fine for making false statements. The Bureau of Indian Affairs is the investigating agency.
Remijio Villarreal. Felon in Possession of Firearms. Villarreal, 38, of Tulsa, is charged with possessing a 7.62X39 caliber rifle, a .22 caliber rifle, and a 20 gauge shotgun after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. In addition, the firearms will be forfeited. The Tulsa Police Department and the FBI are the investigating agencies.
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Federal Government Contractor Indicted for Involvement in Illegal Kickback Scheme and Tax EvasionRead the Press Release
An Enterprise, Alabama, resident was arrested today after a federal grand jury sitting in the Southern District of Florida in Fort Lauderdale indicted him on one count of accepting unlawful kickbacks from 2009 through 2014, and five counts of tax evasion for tax years 2009 through 2013, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division.
According to the allegations in the indictment, Victor Villalobos worked for a federal contractor in Fort Rucker, Alabama, identified in the indictment as Company A, that furnished supplies, materials equipment and services to the government. In 2009, Villalobos approached an individual identified in the indictment as Person X, who owned and operated Company B, a subcontractor of Company A based in Fort Lauderdale. Villalobos solicited illegal kickbacks as payment on the federal subcontracts that Person X held in connection with Company A’s prime contract. Villalobos agreed that in exchange for kickback payments he would refrain from conduct that would unfavorably affect Person X’s business relationship with Company A and would also help ensure that Person X obtained additional subcontracting business. On Jan. 26, 2015, Villalobos met with Person X and accepted an envelope containing $5,000 in cash. They met again approximately two weeks later and Villalobos accepted a bag containing $55,000 in cash as kickback payments. From June 2009 to December 2014, Villalobos received approximately 57 separate wire funds transfers totaling more than $1.9 million in kickback payments from various foreign and domestic bank accounts controlled by Person X.
Villalobos concealed these kickbacks by incorporating nominee entities, opening nominee bank accounts and failing to report the illegal kickback payments as income on his individual federal income tax returns for 2009 through 2013.
If convicted, Villalobos faces a statutory maximum sentence of 10 years in prison for the illegal kickback scheme and a statutory maximum sentence of five years in prison for each count of tax evasion. He also faces potential fines of up to $250,000 on each count.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, the U.S. Air Force’s Office of Special Investigations and the U.S. Department of Defense’s Office of the Inspector General, who investigated this case, and Trial Attorneys Charles M. Edgar Jr. and Jason H. Poole of the Tax Division, who are prosecuting this case. Ciraolo also thanked the U.S. Attorney’s Office of the Southern District of Florida for their substantial assistance.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Ellis County Woman Admits Defrauding MedicaidRead the Press Release
DALLAS – Alexis C. Norman, 47, of Midlothian, Texas, appeared in federal court this morning before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of health care fraud, announced John Parker, U.S. Attorney for the Northern District of Texas.
Norman, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison, mandatory restitution, and a $250,000 fine. Sentencing is set for November 19, 2015, before U.S. District Judge Jane J. Boyle.
According to documents filed in the case, Norman was the CEO and Executive Director of Greater Southwest Group, Inc. (GSWG) and Ellis County Community Services (ECCS). She obtained Medicaid group numbers for GSWG and ECCS and used those numbers, together with individual Medicaid provider numbers of licensed counselors and Medicaid recipient information, to submit fraudulent claims to Medicaid.
Norman, who is neither a psychotherapist nor a mental health provider, submitted claims for individual and family psychotherapy sessions that were not performed. As part of her fraud scheme, Norman used the Medicaid provider information of licensed counselors who applied for positions as contract counselors at GSWG and ECCS, but who were never hired and never worked for Norman, GSWG, or ECCS. Norman also used the Medicaid provider numbers of licensed counselors, without their knowledge and consent, to submit claims under the GSWG and ECCS group numbers for services that they did not perform and for psychotherapy services that predated and postdated their actual employment with Norman. The indictment alleges that Norman used the identification of more than 500 Medicaid recipients, most of whom were minor children, in her scheme.
From December 2, 2009, through July 17, 2014, Norman submitted claims to Medicaid and to Medicaid Managed Care Organizations, through GSWG and ECCS, totaling approximately $5,502,724.88; Norman was paid approximately $2,596,045.97 for these claims.
The FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit investigated. Assistant U.S. Attorney Douglas Brasher is prosecuting.
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Dr. Dong, GenPhar Inc., and Vaxima, Inc., Convicted of Fraud in Retrial Before U.S. District Court Judge David NortonRead the Press Release
Contact Person: Eric Klumb (843) 727-4381
Columbia, South Carolina ---- United States Attorney William N. Nettles stated today that Dr. Jian Yun Dong, aka John Dong, and the companies which he founded, GenPhar Inc. and Vaxima Inc., were convicted of multiple fraud-based charges following a five day trial in Federal Court that took place June 22 through 25, 2015. The case was submitted for decision to Judge David C. Norton, who issued the verdicts and a written decision today. The case was retried before Judge Norton after a jury hearing the case last November could not reach unanimous verdicts on all counts, although it did find the two corporate defendants guilty of most of the charges. After the two trials, all three defendants have been found guilty of one count of Conspiracy to Commit Grant Fraud, Wire Fraud, Theft of Government Property and Providing False Statements; one count of Theft of Government Funds; and 22 counts of Wire Fraud.
The trial began on November 5, 2014, and concluded on November 14, 2014. Testimony at trial established that federal grant money was obtained by GenPhar and Vaxima for purposes of biodefense research and vaccine development, but was used for other purposes, specifically to construct a commercial office building and pay lobbyists and others who were seeking to secure federal funding for the defendants. Testimony further established that a total of approximately six million dollars were spent on the construction, which included approximately at least three million dollars of improperly diverted grant money.
Mr. Nettles stated, “The real tragedy in this case is that millions of dollars intended for desperately needed vaccine research was diverted into a commercial real estate project. Most of the dedicated and accomplished scientists receiving these grants can be trusted to spend the funds on research, but those that seek to divert the funds to their own benefit need to know that we will pursue charges against them like any other fraudsters.”
The convictions are the result of an investigation conducted by the Department of Health and Human Services Office of Inspector General, the Defense Criminal Investigative Service, the Federal Bureau of Investigation, the U.S. Army Criminal Investigation Command, and the Naval Criminal Investigative Service. Assistant United States Attorneys Eric Klumb and Nathan Williams of the Charleston office prosecuted the case.
#####District Court Enters Permanent Injunction against California Soy Food Producer and Three Individuals to Stop Distribution of Adulterated FoodsRead the Press Release
The U.S. District Court for the Eastern District of California entered a consent decree of permanent injunction against Henh Wong Fresh Produce, of Sacramento, California, its owner, David C. Ly, and employees, Kin S. Ly and Thahn “Danny” C. Ly, to prevent the distribution of adulterated food, the Department of Justice announced today.
Henh Wong Fresh Produce manufactured and distributed tofu, seasoned tofu, fried tofu, fried bean cakes, soy jello and soy bean drinks. It also grew, harvested, prepared, packed, held and distributed ready-to-eat mung bean and soy bean sprouts. In addition to manufacturing and distributing products under the name Henh Wong Fresh Produce, the firm also manufactured and distributed products as Henh Wong Fresh Product and Henh Wong Tofu.
The department filed a complaint in the U.S. District Court for the Eastern District of California at the request of the U.S. Food and Drug Administration (FDA), alleging that the company and individuals have a history of processing food products under insanitary conditions.
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing violations of the federal Food, Drug and Cosmetic Act (FDCA). The consent decree states that the defendants have ceased operations at their production facility. The consent decree also requires Henh Wong Fresh Produce to remain closed, and requires that if the defendants wish to resume manufacturing and distributing food, the FDA first must determine that the firm’s manufacturing practices have come into compliance with the law.
“The department will not hesitate to bring enforcement actions against food producers who do not follow the necessary procedures to comply with our nation’s food safety laws,”
said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division.
According to the complaint, the FDA’s most recent inspection of the manufacturing facility at 2630 Fifth Street, Unit 92, in Sacramento, occurred in the summer of 2014. As alleged in the complaint, during this inspection, FDA investigators found: live cockroaches and flies in the tofu production room; a live cockroach inside a plastic container used for holding ready-to-eat tofu; dead cockroaches in the sprout processing room; a dead cockroach in the mung bean dry storage room; and rodent excreta pellets in the seed dry storage and sprout processing rooms.
Also, as alleged in the complaint, the FDA found numerous violative employee practices, including: employees using a high-pressure hose to clean equipment and debris on the floor in the tofu production room, causing water to splash from the floor onto nearby fried tofu and other in-process tofu products; an employee touching the lid of a dumpster covered with a black slimy residue and old food build-up and then handling ready-to-eat tofu without sanitizing her hands; an employee scooping sprouts off the floor and then touching various food product contact surfaces without first changing or sanitizing his gloves; an employee using a dirty floor broom to clean sprout processing equipment; and an employee touching a scale stained with a black slimy residue and then continuing to pack ready-to-eat sprouts without first changing or sanitizing his gloves.
According to the complaint, the FDA inspected Henh Wong’s facility five other times prior to the 2014 inspection — in 2003, 2005, 2008, 2010 and 2011 — and similar to the 2014 inspection, FDA investigators observed questionable or violative practices during all of these inspections.
The government is represented by Counsel Melanie Singh of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel Laura Akowuah of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division.
Deming Man Sentenced to Federal Prison for Participating in Methamphetamine Trafficking RingRead the Press Release
ALBUQUERQUE – Ricardo Rodriguez-Magallanes, 38, of Deming, N.M., was sentenced today in federal court in Las Cruces, N.M., to 87 months in prison followed by two years of supervised release for his methamphetamine trafficking conviction.
Rodriguez-Magallanes was indicted in Oct. 2012, in a multi-defendant indictment and charged with participating in a Deming-based methamphetamine trafficking ring. The indictment charged the defendants with conspiracy to distribute methamphetamine between April 2012 and Oct. 2012. It also included seven substantive drug trafficking charges, and alleged that members of the conspiracy distributed large quantities of methamphetamine in southern New Mexico communities, including Deming, Las Cruces and Sunland Park. The eight-count indictment also sought forfeiture of property and proceeds derived from or involved in the defendants’ illegal activities.
The charges against the defendants were the result of a multi-agency investigation initiated early in 2012, involving DEA and HSI agents who were acting in undercover capacities and were able to infiltrate the conspiracy. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
According to court filings, during the seven-month investigation, the undercover agents engaged in a series of meetings with members of the conspiracy during which they negotiated numerous transactions involving large quantities of methamphetamine. During the course of the investigation, law enforcement officers seized and purchased approximately two kilograms of methamphetamine and seized approximately $235,206.00 in cash.
On Oct. 18, 2012, law enforcement officers arrested six of the defendants, including Rodriguez-Magallanes, and executed search warrants at residences in Deming, Las Cruces, N.M., and Albuquerque, N.M. Two defendants have yet to be apprehended and are considered fugitives.
Rodriguez-Magallanes, who was charged in three counts of the indictment, pled guilty on March 12, 2013, to participation in a methamphetamine trafficking conspiracy and distribution of methamphetamine. In entering his guilty plea, he admitted that between April and Oct. 2012, he sold and facilitated the sale of methamphetamine to a person, who unbeknownst to him was an undercover law enforcement agent.
The following defendants have entered guilty pleas and have been sentenced as follows:
- Gildardo Majalca-Aguilar, 47, a Mexican national who is a legal permanent resident and resides in Albuquerque, pled guilty on March 29, 2013, and was sentenced on Aug. 23, 2013, to 168 months in prison followed by five years of supervised release
- Ivan Jesus Majalca, 29, of Deming, pled guilty on April 8, 2013, and was sentenced on Sept. 11, 2014, to 87 months in prison followed by two years of supervised release.
- Eleazar Olivas-Mendoza, 47, a Mexican national who is a legal permanent resident and resides in Las Cruces, pled guilty on March 19, 2013, and was sentenced on June 24, 2014, to 108 months in prison followed by five years of supervised release.
- Adam Galindo, 47, of Deming, pled guilty on May 2, 2013, and was sentenced on Aug. 26, 2014, to 24 months in prison followed by one year of supervised release.
- Jose Angel Morales, 25, of Deming, pled guilty on March 8, 2013, and was sentenced on Dec. 5, 2013, to 46 months in prison followed by two years of supervised release.
Carolina Gonzales-Hermosillo, 21, and Karla Iveth Nunez-Ortega, 33, are Mexican nationals who have yet to be arrested and are considered fugitives.
Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Anyone with information on the whereabouts of these fugitives is asked to contact the Las Cruces DEA at (575) 526-0700.
The case is being prosecuted by Assistant U.S. Attorneys Renee L. Camacho and Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office. It was investigated by the DEA in Las Cruces, HSI in Las Cruces and Deming, the FBI in Roswell and the HIDTA Las Cruces Metro Narcotics Agency.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Delaware County Man Sentenced for Methamphetamine and Firearms ChargesRead the Press Release
A man who imported pseudoephedrine from Canada to manufacture methamphetamine was sentenced on August 3, 2015, to more than 12 years in federal prison.
Roger Hettinger, age 42, from Manchester, Iowa, received the prison term after a May 19, 2015, guilty plea to importation of pseudoephedrine, possession of illegal silencers and possession of pseudoephedrine with the intent to manufacture methamphetamine.
At the guilty plea, Hettinger admitted he, along with others, obtained pseudoephedrine from local sources and from Canada to use in manufacturing methamphetamine at his residence and elsewhere. Searches of Hettinger’s Manchester home in January 2015 by the Delaware County Sheriff’s Office revealed a methamphetamine manufacturing operation, 19 firearms and four homemade silencers.
Hettinger was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hettinger was sentenced to 150 months’ imprisonment. A special assessment of $300 was imposed, and he must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Hettinger is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and investigated by the Delaware County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-2004.
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Defendant Sentenced to 205 Months in Prison for Leading Crew That Committed More Than Two Dozen Armed RobberiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HENRY JAMES was sentenced today in Manhattan federal court to 205 months in prison for leading a robbery crew that committed over two dozen armed robberies in the Bronx and Brooklyn in 2013. Since September 2013, JAMES and ten other defendants have been charged for their respective roles in this armed robbery conspiracy. In October 2014, JAMES pled guilty to participating in the robbery conspiracy and a firearms offense. JAMES was sentenced by United States District Judge Sidney H. Stein.
In November 2014, co-defendants Markquez McFadden and Qushawn Woods were convicted after a two-week jury trial before Judge Stein. McFadden and Woods were each found guilty of participating in the robbery conspiracy, and McFadden was also found guilty of a firearms offense. On July 9, 2015, Judge Stein sentenced Woods to 46 months in prison. On July 15, 2015 Judge Stein sentenced McFadden to 120 months in prison.
The eight other defendants in this case – Jerome Ortiz, Edward Matthews, Kelvin Green, Tyrell Jones, Untra Jones, Cesar Thomas, Dennis Buie, Sr., and Dennis Buie, Jr. – pled guilty to various offenses, including participating in the robbery conspiracy and/or firearms offenses.
Manhattan U.S. Attorney Preet Bharara said: “Henry James, a convicted murderer, led a violent and ruthless armed robbery crew that terrorized hard working employees at various stores in the Bronx and Brooklyn. For his crime spree of over two dozen armed robberies, James has now been convicted and sentenced.”
According to the allegations contained in the Indictments, evidence presented at trial, and other court documents previously filed in Manhattan federal court:
Between July and October 2013, the eleven-member crew that JAMES led and organized committed more than two dozen armed robberies in the Bronx and Brooklyn. The robberies followed a simple but violent pattern. Multiple robbers entered a store during business hours while customers and employees were inside and demanded money, cellphones, and other items at gunpoint. During these robberies, one robber entered the store first, drew his gun, approached the clerk, and announced a robbery. The other robber or robbers then walked in, often closed the door behind them, and then put a mask over (or pulled a hood onto) their faces. The robbers would demand access to the “drop box” or “lock box” where they believed cash was held. Afterward, the robbers left the store and drove away in a vehicle that was parked around the corner from the store. In certain robberies, store employees were pistol whipped.
JAMES previously served a more than a 20-year sentence for a 1986 second degree murder in which a victim was killed during the course of a robbery. Less than one year after he was released from prison, JAMES began recruiting members to commit these armed robberies.
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All eleven defendants have either pled guilty or been convicted after trial. In addition to JAMES, Woods, and McFadden, the following defendants have been sentenced by Judge Stein:
- On July 31, 2014 Jerome Ortiz was sentenced to 120 months in prison.
- On October 28, 2014, Edward Matthews was sentenced to 132 months in prison.
- On December 17, 2014, Untra Jones was sentenced to 90 months in prison.
- On February 23, 2015, Dennis Buie, Sr. was sentenced to 27 months in prison.
Cesar Thomas, Dennis Buie, Jr., Kelvin Green, and Tyrell Jones have yet to be sentenced.
Mr. Bharara praised the investigative work of the New York City Police Department, especially detectives from the Bronx Robbery Squad and Joint Robbery Task Force. Mr. Bharara also thanked the United States Marshals Service Fugitive Task Force for their outstanding assistance in the pursuit and arrest of JAMES.
The case is being prosecuted by the Office’s Violent & Organized Crime Unit. Assistant United States Attorneys Andrew Bauer, Andrea M. Griswold, and Joshua A. Naftalis are in charge of the prosecution.
Court Concludes Agreement That Prompted Important Reforms to the Nebraska Service System for People with Developmental DisabilitiesRead the Press Release
Today, the U.S. District Court for the District of Nebraska approved the joint motion of the U. S. and the state of Nebraska to terminate a remedial consent decree that mandated improvements to the state’s system for people with developmental disabilities. The Department of Justice recently determined that Nebraska had complied with the terms of the decree. In 2008, the court approved the decree and entered it as a court order. At the parties’ request, the court dismissed the case.
The decree required the state to remedy health, safety, and welfare issues at Nebraska’s two state-owned and operated institutions—the Beatrice State Developmental Center (BSDC) and Bridges, a highly-restrictive facility that housed people with serious behavior problems. The decree also required the state to significantly expand and enhance community capacity to ensure positive individual outcomes for people in integrated settings, as required by the Americans with Disabilities Act (ADA) and the Supreme Court’s Olmstead opinion.
Over the past seven years, the state developed effective steps to comply with the terms of the decree. The state has implemented reforms that have transformed its service-delivery system, greatly expanded and enhanced community capacity, minimized reliance on institutional services and improved outcomes for thousands of people with developmental disabilities.
“Our agreement has prompted Nebraska to place a much greater emphasis on delivering needed services to people with developmental disabilities in integrated community settings,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “We applaud the state for implementing important and sustainable reforms to help realize the promise of Olmstead. Across the system, people with developmental disabilities in the state’s system are now more engaged with their communities, leading more meaningful and fulfilling lives. We thank officials within the State’s Department of Developmental Disabilities for their hard work, leadership and commitment over the years in achieving positive change.”
“As a society, we are judged by how we treat our citizens,” said U.S. Attorney Deborah R. Gilg of the District of Nebraska. “This conclusion marks a lengthy overhaul of state services to individuals with developmental disabilities. We are grateful to the state of Nebraska for its commitment to this process.”
The state has made a sustained effort to expand community developmental disabilities services throughout Nebraska to ensure adequate service capacity exists to meet outstanding needs.
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Entry of the decree effectively “closed the front door” to state-run institutional developmental disabilities services in Nebraska; the last admission to BSDC was on June 9, 2009. As of today, there are only 116 residents still living at BSDC, representing a 64 percent reduction in census size from the time of the United States’ investigation in 2007. BSDC is the only state-run developmental disabilities institution left in Nebraska.
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The state closed the Bridges institution and placed all of the residents into community settings. Since transition to the community, individual outcomes have greatly improved.
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State increased its expenditures on community developmental disabilities services and supports during the life of the decree. The increased funding has expanded services, improved their quality, and provided more effective oversight of service-delivery.
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The state has shifted and increased funding to community-based services, allowing it to address the needs of nearly 1,700 additional people on its waitlist.
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The state has greatly expanded community capacity to address the needs of people with complex health conditions, as well as those with complex behavioral issues. Prior to 2009, there were 25 specialized providers certified in Nebraska. Since then, the state has certified an additional 35 such providers who operate a total of 87 certified community programs. In addition, the state has implemented improved community behavioral services and crisis services.
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The state has implemented significant programs to improve health outcomes for people with developmental disabilities living in the community, including a screening tool, a traveling clinical review team, specialized training for provider staff, and a tele-health network.
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In recent years, the state initiated a program to avoid unnecessary incarceration of individuals with developmental disabilities who come in contact with the judicial system, providing them instead with community homes and services in integrated settings.
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The state has significantly increased the number of people with developmental disabilities who are employed in integrated settings, as well as the number of hours they are working there.
In addition to community initiatives, the state has implemented a number of important reforms at BSDC to better meet individual needs and to increase access to the community.
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The number and percentage of BSDC residents working in the community has increased from year to year. In 2007, only one person (less than one percent) worked off campus. Today, over 60 percent of eligible residents work in integrated settings.
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Nebraska has completely eliminated mechanical restraint usage throughout its entire system.
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Nebraska now implements an effective “zero tolerance” policy for abuse and neglect. As a result, substantiated abuse and neglect incidents at BSDC have declined steadily to only a handful of incidents per year.
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The state has substantially improved health care and behavioral services at BSDC, resulting in substantial reductions in choking incidents, aspiration pneumonia, and use of polypharmacy.
The department initiated its investigation pursuant to the Civil Rights of Institutionalized Persons Act, putting a primary focus on obtaining reforms to address violations of the ADA, as interpreted in Olmstead v. L.C., requiring that individuals with disabilities receive services and supports in the most integrated setting appropriate to their needs. On March 7, 2008, the United States issued a findings letter to the state that detailed systemic conditions and practices that violated the constitutional and statutory rights of individuals with developmental disabilities in the state’s system. The findings letter, consent decree and papers related to the instant motion are available at: http://www.justice.gov/crt/about/spl.
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Columbus County Man Pleads Guilty to Bank Fraud, Falsifying Crop Insurance Claims, and Money Laundering Following Jury SelectionRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that today in federal court, following jury selection in his criminal trial, MILTON RUSS BARNHILL, of Tabor City, North Carolina, entered guilty pleas to all pending counts against him.
Count one of the indictment charged the defendant with conspiring with others to defraud the Federal Crop Insurance Corporation (FCIC) and the Farm Service Agency (FSA), both agencies of the United States, in connection with federal crop insurance claims and other federal taxpayer subsidies. As charged, the defendant produced crops which he sold in the names of others. The Defendant and others then reported on insurance claims that the crops were lost due to natural disasters. The defendant also placed crops and insurance policies into the names of conspirators to boost the amount of money he could collect on the insurance claims.
Counts two through eight, ten, and eleven of the indictment each charged the defendant with falsifying and aiding and abetting others to falsify federal crop insurance claims. The defendant received more than $1 Million into his bank account that was derived from hidden crop production, underreported crop production, and overstated crop acreages, all on federal crop insurance documents.
Count 12 of the indictment charged the defendant with committing mail fraud that resulted in Horry County State Bank paying out approximately $450,000 in fraudulent loan proceeds. On this count, the defendant supplied a fictitious tobacco sales contract to Horry County State Bank as collateral for a farm operating loan. In fact, the contract was fictitious, included references to a bogus tobacco receiving station, and was signed by a fictitious person. The phone number the defendant provided to the bank as the number for the tobacco receiving station was, in fact, a prepaid cell phone that the defendant purchased in Clinton, North Carolina. The P.O. Box for the tobacco receiving station was, in fact, a mailing address applied for by the defendant.
Counts 15 through 19 charged the defendant with using the proceeds from the foregoing frauds to fund other transactions in excess of $10,000 in value. The evidence showed that the defendant received fraudulent bank monies into his account. The defendant then used those funds to promote the ongoing production of crops in the names of conspirators, who he also caused to file false crop insurance claims.
At sentencing, the defendant faces up to 30 years in prison on each of Counts 2 through 8, 10, and 11, pertaining to false federal crop insurance claims. The defendant faces up to 30 years in prison on Count 12, pertaining to the mail fraud upon Horry County State Bank. The Defendant faces up to 10 years in prison on each of Counts 15 through 19 pertaining to Mail Fraud. Lastly, the defendant faces up to 5 years in prison on Count 1, pertaining to the conspiracy.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General - Investigations; United States Department of Agriculture - Risk Management Agency – Special Investigations Branch; and the United States Internal Revenue Service – Criminal Investigations; with the assistance of the Columbus County Sheriff’s Office and the Whiteville Police Department. Assistant United States Attorney William M. Gilmore handled the prosecution at trial on behalf of the Eastern District of North Carolina.
Charlotte Man Sentenced to 21 Months for Check Fraud ConspiracyRead the Press Release
CHARLOTTE, NC B A Charlotte man charged with defrauding financial institutions of more than $133,000 was sentenced today to 21 months in prison, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Dezon Montrice Gill, a/k/a “Bentley,” was also ordered by Chief U.S. District Judge Frank D. Whitney to serve three years under court supervision and to pay $133,940.83 as restitution.
Acting U.S. Attorney Rose is joined in making today’s announcement by Michael Rolin, Acting Special Agent in Charge of the United States Secret Service, Charlotte Field Division.
According to filed documents and today’s sentencing hearing, from about July 1, 2013 to August 21, 2013, Gill orchestrated a check fraud scheme that targeted financial institutions in the Charlotte area. Court records indicate that Gill executed the scheme by depositing worthless checks into back accounts of FDIC-insured institutions and then used debit cards linked to these bank accounts to purchase money orders and gift reload cards. According to court records, Gill opened a new account at a bank and used the new “starter” checks to write worthless checks he then deposited into other individuals’ bank accounts. According to court records, Gill paid the account holders between $1,000 to $2,000 in exchange for using their debit cards to purchase money orders, and Green Dot Moneypack Reload Cards. Court records show that Gill defrauded financial institutions of more than $133,000 in this manner. Gill pleaded guilty in January 2015 to one count of financial institution fraud conspiracy and one count of financial institution fraud.
Gill is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The U.S. Secret Service investigated the case.Assistant U.S. Attorney Kenneth Smith handled the prosecution.
Brother, Sister Sentenced for Armed Robbery at Excelsior Springs BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Kan., brother and sister were sentenced in federal court today for the armed robbery of an Excelsior Springs, Mo., bank, which was followed by a high-speed chase until the robbers’ vehicle crashed.
Virginia Lynn Spencer, 29, and her brother, Charles Ralph Spencer, 25, both of Kansas City, Kan., were sentenced in separate appearances before U.S. Chief District Judge Greg Kays. Virginia Spencer was sentenced to 10 years and three months in federal prison without parole. Charles Spencer was sentenced to eight years and six months in federal prison without parole.
Virginia and Charles Spencer each pleaded guilty on Feb. 2, 2015, to one count of aiding and abetting an armed bank robbery and one count of aiding and abetting the possession of a firearm in furtherance of a crime of violence.
Co-defendant Steven Dale Robinson, 23, of Kansas City, Kan., pleaded guilty to being the getaway driver for the bank robbery and was sentenced on May 5, 2015, to six years and eight months in federal prison without parole.
By pleading guilty, all three defendants admitted to stealing $11,883 at gunpoint from Bank Midwest, 201 N. Jesse James Rd., Excelsior Springs, on May 23, 2014.
Before robbing the bank, in order to help disguise themselves for the robbery, the defendants went to a K-Mart store in Independence, Mo., where they purchased black University of Missouri t-shirts, a package of gardening gloves, head coverings, sunglasses, black spray dye for Charles Spencer’s facial hair and electrical tape for Virginia Spencer’s shoes. They cased banks in Polo, Braymer and Richmond, Mo., before deciding to rob the Bank Midwest in Excelsior Springs.
Prior to entering the bank, Virginia Spencer provided Charles Spencer with a loaded Rossi .32-caliber revolver. Robinson, the driver, backed the vehicle up near the bank’s entrance in order to facilitate the getaway.
Virginia and Charles Spencer entered the bank at about 5:30 p.m. Charles Spencer stood in the lobby and pointed a Rossi .32-caliber revolver in the air with his finger on the trigger. Charles Spencer displayed the revolver during the entire course of the robbery. They yelled at bank employees to sit on the floor. Virginia Spencer then jumped over the middle teller counter and began going through the teller drawers, while Charles Spencer stood near the teller station, revolver displayed. Virginia Spencer took money out of the teller drawers, placed it in a clear trash bag, and jumped back over the counter.
Both robbers ran from the bank, with Virginia Spencer saying, “Have a nice day” on her way out. They got into the vehicle being driven by Robinson and sped out of the parking lot.
A bank customer, who had just conducted a transaction at the ATM with her three children in the vehicle, drove around toward the front of the bank to leave the parking lot. As the bank robbers’ vehicle left the Bank Midwest parking lot it narrowly missed the customer’s vehicle. She immediately called 911 on her cell phone and reported the vehicle’s direction of travel.
Clay County Sheriff’s deputies saw the vehicle near 69 Highway and Lightburn Road. Attempting to escape from pursuing law enforcement officers, Robinson drove approximately 85 miles per hour while going southbound (the wrong way) in the northbound lane of traffic. Robinson ran traffic stops, struck a concrete barrier, and continued evading police officers, driving over 50 miles per hour through residential neighborhoods. After turning into oncoming traffic on Missouri Highway 291, Robinson continued to speed at 65 miles per hour, eventually reaching approximately 90 miles per hour. During this chase, Charles Spencer threw the firearm out the car window. Eventually, Robinson was traveling at such a high rate of speed that while attempting to round a corner, he lost control of the vehicle and struck a tree head-on near Kings Highway and Dam Road in Liberty, Mo. Virginia and Charles Spencer were both injured in the crash and were transported to a nearby hospital.
Law enforcement officers found a bag containing $11,883 on the front floorboard of the vehicle. Police recovered the firearm near the crash site.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the FBI, the Clay County, Mo., Sheriff’s Department and the Excelsior Springs, Mo., Police Department.
Branson EMT Pleads Guilty to Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Branson, Mo., EMT pleaded guilty in federal court today to producing child pornography.
Nicholas James Dickerson, 30, of Branson, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Feb. 25, 2015, federal indictment. Dickerson is employed by the Western Taney County Fire Protection District as an EMT and volunteer firefighter. Dickerson was residing in living quarters at a Branson fire station at the time of the offense.
By pleading guilty today, Dickerson admitted that he used a minor to produce child pornography on Feb. 7, 2015.
According to court documents, Dickerson sold his iPhone to a Nixa, Mo., business on Feb. 9, 2015. After the transaction was complete, an employee of the business noticed that the “deleted pictures folder” was still present on the screen. The employee saw an image of child pornography and alerted the store owner, who contacted law enforcement.
Investigators identified the nine-year-old victim in the image. Dickerson told investigators that he took the photo while sexually abusing the child victim in his living quarters at the fire station, and that he sexually abused the victim on multiple occasions. Dickerson also told investigators he had shown pornography to the child victim.
Under federal statutes, Dickerson is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000. 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 Ami Harshad Miller. It was investigated by the FBI.
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."
Benton County Felon Sentenced for Possessing a FirearmRead the Press Release
A four time felon who made threats by pointing a loaded shotgun at another and then discharging it in that person’s presence was sentenced today to just short of four years in federal prison.
Dennis Lee Kaplan, age 41, from Shellsburg, Iowa, received the prison term after a January 15, 2015, guilty plea to a single count Indictment charging him with being a felon in possession of a firearm.
At the guilty plea, Kaplan admitted that on August 21, 2014, he pointed a loaded shotgun at his girlfriend. He also pointed it at himself then discharged a single shell outside the door of their residence. The court noted the many aggravating risk factors in this case including placing not only himself but others at risk.
Kaplan was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Kaplan was sentenced to 46 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Kaplan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Steve Young and investigated by the Vinton Iowa Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14 CR 00125.
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Baton Rouge Man Charged with Sextortion Scheme Involving Numerous ChildrenRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment in connection with an international investigation into an alleged scheme to extort numerous children into producing child pornography, also referred to as “sextortion”. Specifically, the indictment charges Matthew Chaney Walker, age 25, of Baton Rouge, Louisiana, with extortion, production of child pornography, receipt of child pornography, possession of child pornography, and forfeiture.
According to the Indictment, Walker frequented social networking websites, such as Kik Messenger, in order to meet young girls online. The anonymous nature of the online relationship allowed Walker to misrepresent his name, age, gender, and interests. Pretending to be a teenage girl, Walker used different online identities and screen names, including “emilyluvsyou20,” “Emily,” “its_zoey_2002,” and “Zoey Jane,” to communicate with his victims. Soon after establishing contact, Walker used deceit and manipulation to obtain compromising images of the victims. Thereafter, Walker threatened to send compromising images of the victims to their schools, friends, families, and/or the public unless the victims created and sent to Walker images of themselves nude or engaging in sexually explicit conduct. Some victims complied with Walker’s demands for nude and/or sexually explicit images. Each victim eventually told a family member, who intervened and contacted law enforcement.
The investigation of this case is ongoing. To date, at least four minor female victims have been identified, although law enforcement is attempting to confirm the identity of many other victims. Anyone who believes that they might have been a victim of Walker’s offenses is encouraged to contact the Baton Rouge Office of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), at 225-757-7770, extension 106.
If convicted, Walker faces significant incarceration, fines, restitution, forfeiture, and supervised release following imprisonment.
U.S. Attorney Green stated: “Child predators increasingly use the internet to attack our children in ways never imagined a generation ago. No longer does safety equate to being inside, behind locked doors, as the interest has brought the best and worst of society into our homes. The good news is that communities are fighting back, along with prosecutors and law enforcement agents all over the world. This indictment represents another effort in this important fight.”
“Threatening and extorting young girls into producing sexually explicit images of themselves is a callously deviant act of predatory behavior,” said HSI New Orleans Acting Special Agent in Charge Cindy M. Johnson. “Child pornography steals the innocence of children, and the associated emotional manipulation can scar a child for life. HSI will continue to use all the tools in its arsenal to identify the perpetrators of these horrendous acts and seek justice on behalf of their victims.”
Detective Ryan Wilson of the Peterborough Police Service in Ontario, Canada, stated: “This investigation is a prime example of the importance of working collaboratively with our international partners in an effort to combat the exploitation of children on the Internet.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Department of Homeland Security, Homeland Security Investigations (DHS-HIS) and the U.S. Secret Service, with assistance from the Cyber Crime Unit and the Criminal Division of the Louisiana Attorney General’s Office; the Sheriff’s Office for Cheatham County, Tennessee; the Sheriff’s Office for Ottawa County, Michigan; the City Police Department for Naperville, Illinois; the Peterborough Police Service in Ontario, Canada, which a member of the Ontario Provincial Strategy to Protect Children from Sexual Abuse and Exploitation on the Internet; and the U.S. Attorney’s Office for the Middle District of Tennessee.
This matter is being prosecuted by Assistant U.S. Attorney Cam T. Le who serves as the Project Safe Childhood Coordinator for the Middle District of Louisiana.
These federal charges are part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “Resources” tab for information about Internet safety education.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Baltimore Cocaine Dealer and Member of the Jenifer Drug Trafficking Organization Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Elroy Johnson, age 49, of Baltimore, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possession with intent to distribute five kilograms or more of cocaine, in connection with his participation in the Jenifer drug trafficking organization (Jenifer DTO).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Special Agent in Charge Shawn R. Ellerman of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, from September 2012 to October 2014, the Jenifer DTO supplied Johnson and others with kilogram-quantities of cocaine for distribution in and around the Baltimore-Washington metropolitan areas. The Jenifer DTO obtained its cocaine from suppliers in or around Houston, Texas. The Jenifer DTO transported money hidden in secret compartments in “courier vehicles” from Baltimore to Houston. The cocaine was then transported from Houston to Baltimore hidden in the secret compartments in the Jenifer DTO’s courier vehicles. In September 2012 and July 2013, courier vehicles for the Jenifer DTO were intercepted in Chambers County, Texas and in Arkansas. The vehicles contained approximately 30 kilograms and 23 kilograms, respectively, of cocaine hidden in a secret compartment. Between August 2013 and October 2014, approximately 30 shipments of cocaine were made to the Jenifer DTO.
In August and September 2014, agents saw Johnson meet with members of the Jenifer DTO to exchange money and obtain cocaine. On October 9, 2014, approximately 123 grams of cocaine was seized from Johnson’s residence. On that same day, approximately 27 kilograms of cocaine were seized from one of the Jenifer DTO’s courier vehicles.
Johnson admitted that he was a member and co-conspirator of the Jenifer DTO, which was responsible for trafficking no less than 750 kilograms of cocaine from Houston to Baltimore from August 2013 to October 2014.
William Hegie, age 54, and Kermit Clark, age 44, both of Baltimore, previously pleaded guilty to their participation in the conspiracy and were each sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation and Baltimore City and County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr., who prosecuted the case, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance in this Organized Crime Drug Enforcement Task Force case.
Baldwin Borough Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
PITTSBURGH – A resident of Baldwin Borough, Pa., pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Eric Charles Smith, 37, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on or about July 27, 2014, officers of the Baldwin Borough Police Department arrested Eric Smith at his residence in Baldwin for domestic violence assault against his girlfriend and their five-year-old. Two days later, while Smith was still in jail on that charge, officers were called out to Smith’s residence by Smith’s girlfriend who indicated that she had obtained a Protection from Abuse Order against Smith and wanted his items removed from the residence, thereby giving officers consent to enter and seize items. Upon their entry, officers observed numerous (approximately 20) improvised explosive devices, explosive precursor chemicals, written calculations and recipes for explosives, bombmaking literature (such as the Anarchist Cookbook), remote detonating devices and various white supremacist and Nazi paraphernalia (including a podium and business cards which seemed to indicate that his residence was the meeting location for a group known as the “White Church Supremacists”). Among the devices was a six-inch long fused cylinder device which has been determined by the ATF to contain a perchlorate-based powder explosive containing aluminum and potassium perchlorate, as well as nails and other fragmentation taped to the outside of the cylinder. This device has been determined to be in operable condition and to fall within the legal definition of a “destructive device” by the ATF. In addition to being a convicted felon that is prohibited from possessing such a weapon, Smith has no items registered to him in the National Firearms Registration and Transfer Record.
Judge Hornak scheduled sentencing for Dec. 3, 2015. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded the defendant into custody.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Smith.
Annapolis Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – Cecil Scott Wiggins, age 49, of Annapolis, Maryland, pleaded guilty today to being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
Annapolis Police Chief Michael Pristoop stated, “Violent crime in Annapolis is at a historic low due in part to the outstanding federal and local partnerships we enjoy. This is another clear example and I thank our law enforcement partners for their work in this case.”
According to Wiggins’ plea agreement, on December 19, 2014, Annapolis Police Department (APD) officers were called to the1300 block of Tyler Avenue in Annapolis for reports of shots fired. When officers arrived, the victim stated that her boyfriend, Cecil Scott Wiggins, fired a shot into her home. At the time Wiggins fired the shot, the victim and her fourteen-year old son were attempting to prevent Wiggins from getting inside the home. The shot hit the ceiling of the kitchen, without going through the upstairs floor or causing any injuries.
APD and the Anne Arundel County Police Department eventually located Wiggins at his mother’s home in Annapolis. APD personnel spoke to Wiggins’ mother, who gave consent to search her residence, and signed a consent form. In the basement where Wiggins resided, APD recovered a .22 caliber spent shell casing on the floor near the couch, and a silver/black .22 caliber revolver in the nearby laundry room. The revolver had black tape and multicolored rubber bands around the handle, and was loaded with one round of .22 caliber ammunition that matched the type of shell casing found on the floor.
Wiggins was arrested and transported to APD headquarters. Wiggins acknowledged he had a gun when he went to the victim’s home. He claimed that he accidentally pulled the trigger when he stuck his arm through the open door and the door closed on his arm.
Wiggins had previous felony convictions which prohibited him from possessing firearms or ammunition.
Wiggins and the government have agreed that if the Court accepts the plea agreement Wiggins will be sentenced to between 37 and 66 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for September 17, 2015, at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the ATF, Annapolis and Anne Arundel County Police Departments and Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg and Special Assistant U.S. Attorney Shelly S. Glenn, who are prosecuting the case.
3 August 2015
Yakama Tribal Members Sentenced and Fined for Killing EaglesRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Willard Phillip Maldonado and Austin Henry Phillips were sentenced in Yakima for their involvement in the commercialization of eagles. Maldonado, 41, of Union Gap, Washington, was sentenced to 9 months in custody, 6 of which will be served in home confinement. United States District Judge Salvador Mendoza also ordered Maldonado to serve a term of 3 years of supervision and to pay fines and assessments totaling $1,805. Maldonado also agreed to forfeit certain property, including firearms, a vehicle used to transport eagles, and eagle parts. Maldonado pled guilty on April 22, 2015, to six counts involving the killing and transporting of bald and golden eagles for commercial purposes and to offering eagle parts for sale in violation of the Bald and Golden Eagle Protection Act (16 U.S.C. § 668(a)) and the Lacey Act (16 U.S.C. §§ 3372(a)(1) and 3373(d)(1)(b). The offenses occurred over a period of more than three years from December of 2010 through January of 2014. The investigation revealed that Maldonado was using animal carcasses as bait to hunt eagles and was offering their feathers for sale through social media on the internet. One eagle carcass was found wearing a leg band that was later determined to have been placed on the bird by a biologist in Oregon.
Phillips, 39, of Granger, Washington, plead guilty on April 8, 2015, to a misdemeanor stemming from his killing of a bald eagle on January 17, 2014, while hunting with Maldonado. Phillips was sentenced to 3 years of supervised probation with 30 days in home confinement. As a condition of his probation, he will not be allowed to hunt outside of the Yakama Indian Reservation.
As members of the Yakama Indian Tribe, both Maldonado and Phillips can lawfully possess eagle feathers for non-commercial purposes. All members of federally recognized Indian tribes can obtain eagle feathers from a national repository maintained by the U.S. Fish and Wildlife Service for that purpose. However, it is unlawful for anyone to offer eagle feathers for sale or to sell eagle feathers.
The investigation identified people around the country and in Canada who responded to solicitations made by Maldonado. The investigation is one of a number of similar investigations in recent years that have led to convictions of Yakama tribal members, including United States v. Hawk, 09-CR-02034-001; United States v. Wahchumwah, 09-CR-02035-001; and United States v. Arquette, 14-CR-02057.
Michael C. Ormsby said, “The eagle is our country’s national symbol and is a national treasure. Importantly, it is an important and valuable resource evidenced in part by Congress’ enactment of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act. The eagle also has cultural and religious significance to Native Americans and it is important to protect eagles as part of Native American heritage. The United States Attorney’s Office, together with its law enforcement partners, will continue to investigate and prosecute aggressively those individuals who wantonly choose to violate these statutes.”
This investigation was conducted by agents with the U.S. Fish and Wildlife Service, the Washington Department of Fish and Wildlife and Yakama tribal authorities. The case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney for the Eastern District of Washington.
Violent Fugitive Captured After Four Year SearchRead the Press Release
On Friday, July 31st, Andrew Smith, also known as “Back-it,” was arrested by members of the United States Marshals Service New York/New Jersey Regional Fugitive Task Force; the United States Marshals Service Southern Ohio Fugitive Apprehension Strike Team; Immigration and Customs Enforcement and Removal; and the Cincinnati Police Department. Smith was arrested with the assistance of a K-9 unit at approximately 1:30 a.m. in Cincinnati, Ohio, after a brief stand-off.
Smith is allegedly a member of the violent Fatherless Crew marijuana trafficking organization, which for years used violence and intimidation to control drug trafficking in portions of Queens, New York.
The capture was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Charles Dunne, United States Marshal for the Eastern District of New York.
Smith has been a fugitive since October 2010. He narrowly escaped arrest when, following a year-long investigation, federal, state, and local law enforcement officers conducted a search of the Fatherless Crew’s stash house in Queens. That search resulted in the arrest of more than a dozen individuals and the seizure of nearly 300 pounds of marijuana, three loaded handguns, and a variety of drug trafficking paraphernalia, including electronic scales, heat-sealing machines, and a vehicle outfitted with a with a hydraulic trap for concealing firearms. Smith was allegedly responsible for both the distribution of marijuana at the organization’s stash house and the use of violence against rival drug dealers. In March 2010, Smith was also allegedly involved in a shootout with a rival drug gang during a baby shower in St. Albans, Queens. Detectives from the NYPD recovered more than 30 shell casings and bullets, including one bullet that ricocheted off the door of a neighboring daycare center. One individual was shot in the chest during the gunfight but survived.
To date, more than 15 members and associates of the Fatherless Crew have been convicted, including four who were convicted following a five week trial in early 2012.
“Andrew Smith thought he could evade justice by living his life on the run. He learned today that he was wrong,” stated Acting United States Attorney Currie. “Law enforcement will work cooperatively and tirelessly to find and capture violent fugitives.” Mr. Currie expressed his appreciation to each of the agencies that participated in the arrest and thanked the Drug Enforcement Administration, United States Postal Inspection Service, New York City Police Department, and U.S. Attorney’s Office for the Southern District of Ohio for their assistance in this case.
“This fugitive was located because multiple federal, state and local law enforcement agencies cooperated with each other over a period of several years through the United States Marshals Service’s Fugitive Task Forces both in New York and Ohio. These Task Forces produce results like this every day,” stated United States Marshall Dunne.”
The defendant was arraigned on Friday afternoon before United States Magistrate Judge Stephanie Bowman at the federal courthouse in Cincinnati, Ohio, and was ordered to be removed to the Eastern District of New York to face drug tracking and firearms charges. The defendant was remanded without bail. The charges are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Steven Tiscione, Gina Parlovecchio, and Tyler Smith are in charge of the prosecution.
The Defendant:
ANDREW SMITH
Age: 41E.D.N.Y. Docket No. 10-CR-809 (KAM)
Victoria Man Convicted of Sexual Exploitation of a ChildRead the Press Release
VICTORIA, Texas – Mathew Kelly Millegan, 31, of Victoria, has pleaded guilty to production of child pornography, announced U.S. Attorney Kenneth Magidson.
Millegan came to the attention of law enforcement after authorities had learned of the sexual assault of two children. The children were identified and confirmed the abuse. Millegan was identified as the perpetrator and admitted to sexual assaulting the two children and taking sexual explicit photographs of the incident.
Authorities executed a search warrant at Millegan’s residence and seized several electronic media storage devices. Forensic examination led to the discovery of several photographs of the children involved in sexual explicit conduct.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for Nov. 2, 2015. At that time, Millegan faces a minimum of 15 and up to 30 years in federal prison as well as possible $250,000 fine. Upon completion of any prison term imposed, Millegan also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect and prohibit the use of the Internet.
Millegan was arrested on the federal charges in June 2015 and has been in custody since that time where he will remain pending his sentencing hearing.
Homeland Security Investigations and the Victoria County Sherriff’s Office investigated with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Victoria Man Convicted of Sexual Exploitation of a ChildRead the Press Release
VICTORIA, Texas – Mathew Kelly Millegan, 31, of Victoria, has pleaded guilty to production of child pornography, announced U.S. Attorney Kenneth Magidson.
Millegan came to the attention of law enforcement after authorities had learned of the sexual assault of two children. The children were identified and confirmed the abuse. Millegan was identified as the perpetrator and admitted to sexual assaulting the two children and taking sexual explicit photographs of the incident.
Authorities executed a search warrant at Millegan’s residence and seized several electronic media storage devices. Forensic examination led to the discovery of several photographs of the children involved in sexual explicit conduct.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for Nov. 2, 2015. At that time, Millegan faces a minimum of 15 and up to 30 years in federal prison as well as possible $250,000 fine. Upon completion of any prison term imposed, Millegan also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect and prohibit the use of the Internet.
Millegan was arrested on the federal charges in June 2015 and has been in custody since that time where he will remain pending his sentencing hearing.
Homeland Security Investigations and the Victoria County Sherriff’s Office investigated with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
United States Files Complaint Against Three Wisconsin Dietary Supplement ManufacturersRead the Press Release
WASHINGTON – The Department of Justice filed a complaint today alleging that three Wisconsin companies that manufacture dietary supplements were not complying with the U.S. Food and Drug Administration’s (FDA’s) current good manufacturing practices and were misbranding their products. The complaint was filed in the Eastern District of Wisconsin against Atrium Inc., Aspen Group Inc., Nutri-Pak of Wisconsin Inc., and the owners of the three firms, James F. Sommers and Roberta A. Sommers. The companies, located in Wautoma, Wisconsin, sell dietary supplements to retail stores, healthcare professionals and directly to consumers via the Internet.
The complaint alleged that the firms were violating the federal Food, Drug and Cosmetic Act (FDCA) by failing to comply with current good manufacturing practices that, among other things, require manufacturers to establish specifications to ensure the identity and potency of the ingredients in dietary supplements. The complaint also alleged that the firms’ products were misbranded because they failed to identify the part of the plant from which the ingredients were derived, did not list the number of servings per container and failed to identify the serving size.
Supplements manufactured by the firms included Atrium brands Chole-Sterin, Di-Acid Stim, Ocu-Comp and Super-Flex; Aspen brand Flexile-Plus; and Nutri-Pak brands Glucobiotic Supreme and Ocu-Comp.
“Makers of dietary supplements who do not follow the FDA’s regulations put the public at risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to try to make sure that consumers are ingesting safe products and are getting what they paid for.”
“This case and the remedial actions required by the consent decree reflect the continuing focus of our office and the Justice Department generally in safeguarding and promoting the health and well-being of our people,” said U.S. Attorney James L. Santelle of the Eastern District of Wisconsin. “The corrections that these companies are required to accomplish along with oversight and inspection of them, will ensure compliance with the law and responsible sales to consumers.”
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from violating the FDCA. The consent decree requires the dietary supplement manufacturer to cease all operations and requires that if the defendants wish to resume manufacturing dietary supplements in the future, the FDA first must determine that their manufacturing practices have come into compliance with the law. The proposed consent decree is awaiting approval by the court.
The case is being handled by Trial Attorney Patrick Jasperse of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Susan M. Knepel of the Eastern District of Wisconsin, with assistance from Deeona Gaskin of the FDA’s Office of the Chief Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
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U.S. Attorney's Office Obtains ADA Settlement with Doctor's Office for Denying Treatment to Disabled PatientRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached a settlement with a Flint ophthalmology office to resolve allegations that it denied treatment to a patient in violation of the Americans with Disabilities Act (ADA), U.S. Attorney Barbara L. McQuade announced today. The settlement resolves a complaint that Park Eye and Surgi-Center refused to complete an assessment for cataract surgery for a patient because of his disability. The investigation showed that the medical practice did not fully assess the patient because it inaccurately assumed that the patient could not complete the normal battery of tests required for cataract surgery because of his mobility disability. The ADA requires that places of public accommodation, such as medical offices, modify their practices to reasonably accommodate persons with disabilities. The patient later received treatment at another local ophthalmologist practice that made the necessary modifications to fully assess him for cataract surgery. “Health care providers are required to provide patients with disabilities the same medical care that is available to other patients,” McQuade said. “Medical practitioners cannot simply make assumptions about any patients. They must engage in a meaningful consideration of what can reasonably be done to assist them.” Under the settlement, the medical practice agreed to update its policies and training materials to ensure compliance with the ADA and to pay compensatory damages to the Complainant. In addition, the practice must train its staff on the ADA and develop and implement an anti-discrimination policy. The U.S. Attorney’s Office is continuing to investigate complaints involving hospitals and other medical offices related to physical access to medical care for people with mobility disabilities, and effective communication for people who are deaf or have hearing loss as part of the Department of Justice’s Barrier Free Healthcare Initiative, which prioritizes enforcement efforts on this critical area. For more information on the ADA and the DOJ’s Barrier Free Healthcare Initiative, visit http://www.ada.gov/usao-agreements.htm. Those interested in finding out more about these settlements, the obligations of public accommodations under the ADA, or filing a complaint may contact the U.S. Attorney’s Office via email at [email protected], or by calling 313-226-9151. They may also contact the Justice Department through its toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), access its ADA website at www.ada.gov, or file a complaint by email at [email protected].Two convicted on child pornography chargesRead the Press Release
WHEELING, WEST VIRGINIA – Robert J. Gongloff, 25, of Weirton, West Virginia, and Matthew A. Amedeo, 69, of Chester, West Virginia, were each convicted today of child pornography offenses in federal court, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by Immigration and Customs Enforcement and the West Virginia State Police revealed that Gongloff produced numerous images and videos depicting nude minors and minors engaged in sexually explicit conduct. Gongloff, originally from Preston County, West Virginia, also misrepresented his name and age on a website known as MeetMe.com, claiming to be 17 years old and using the name “Johnny Williamson,” in order to transmit sexually explicit photographs to minor females. Gongloff pled guilty today to one count of “Production of Child Pornography.” He faces between 15 and 30 years in prison and a fine of up to $250,000.
Amedo utilized an online file sharing website to share and download various images of child pornography in Hancock County, West Virginia throughout 2014. He pled guilty today to one count of “Possession of Child Pornography,” following an investigation by the West Virginia State Police. He faces up to 20 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 defendants.
Assistant U.S. Attorney Stephen Vogrin prosecuted the cases on behalf of the government.
U.S. Magistrate Judge James E. Seibert presided.
Two Brothers Sentenced on Food Stamp Fraud ChargesRead the Press Release
Two Detroit brothers have been sentenced to federal prison for the roles they played in a fraudulent food stamp scheme, U.S. Attorney Barbara L. McQuade has announced. McQuade was joined in the announcement by Special Agent-in-Charge Anthony V. Mohatt, of the United States Department of Agriculture’s Office of Inspector General. On July 20, 2015 U.S. District Court Judge Robert H. Cleland sentenced Yousef Haddad, age 57, to 42 months in prison, three years of supervised release and ordered him to pay $1,182,705.00 in restitution. Previously, on June 9, 2015 Haddad’s brother, Khalil Haddad, was sentenced by Judge Cleland to 34 months imprisonment, 36 months supervised release, and ordered to pay $978,277.00 in restitution. According to court records, between January of 2008 and September of 2011 Yousef and Khalil Haddad engaged in a scheme of fraudulently obtaining in excess of $1 million from the Supplemental Nutritional Assistance Program, more commonly known as the Food Stamp Program. The scheme involved their convenience store, Dollar City, located on Rosa Parks Blvd. in the City of Detroit. The Haddads would pay cash for food stamps usually at 50 cents to the dollar. They would then obtain 100% reimbursement from the United States Department of Agriculture through its Food and Nutrition Services Agency. Special Agent-in-Charge Mohatt stated: “The Supplemental Nutrition Assistance Program was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigation with the Internal Revenue Service – Criminal Investigations (IRS-CI) and Michigan State Police – Bridge Card Enforcement Team (MSP-BCET) has brought Yousef and Khalil Haddad to justice. The USDA Office of Inspector General will continue to dedicate resources and work with our federal and state law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud.”Three Gaston County Men Arrested for Conspiracy to Violate Laws Governing Firearms, Explosive Devices and Related ChargesRead the Press Release
CHARLOTTE, N.C. – Walter Eugene Litteral, 50, Christopher James Barker, 41, of Gastonia, and Christopher Todd Campbell, 30, of Mt. Holly, N.C., were arrested on Saturday, August 1, 2015, for conspiring to violate federal laws governing firearms and explosive devices and related charges, announced Acting U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. Criminal complaints against the men were filed in late July 2015 and remained sealed until today.
Special Agent in Charge John A. Strong of the FBI’s Charlotte Division joins Acting U.S. Attorney Rose in making today’s announcement.
According to allegations contained in the affidavits filed with the criminal complaints:
Beginning on or about June 18, 2015, law enforcement received information that Litteral and Barker were attempting manufacture explosive or destructive devices. On or about July 22, 2015, law enforcement received information that Campbell was reconstructing live grenades from “dummy grenades” sold legally as military artifacts. Litteral, Campbell and others believed that the United States government intended to use the armed forces to impose martial law, which they planned to resist with violent force. Litterral had been purchasing numerous military equipment in preparation for the alleged attack, including ammunition for a .338 caliber rifle, handheld radios with throat microphones for communication, military issue Kevlar helmets, body armor vests and balaclavas (a form of cloth headgear designed to expose only parts of the face).
The FBI became aware that Litteral and Campbell wanted to manufacture destructive devices such as pipe bombs and grenades and possessed some of the needed components. According to the investigation, Barker provided Litteral with pipe fittings, which are needed to manufacture pipe bombs. Litteral also discussed testing the destructive devices in Shelby, N.C., with Barker present for the testing. Making reference to the explosion, court records indicate that Litteral said, “it is going to be great.”
In addition to purchasing the military supplies, Litteral also tried to purchase a firearm and ammunition for Barker. According to court records, Litteral filled out the required form with his own information, even though the gun was intended for Barker. Using his own debit card, Barker purchased ammunition and a large capacity magazine for the gun. Barker’s prior criminal felony convictions prohibit him from purchasing or possessing a firearm or ammunition.
The three men had their initial appearances today in court and will in remain in federal custody pending their detention hearings, which have been set for Thursday, August 6, 2015.
The charge of conspiracy to violate laws governing firearms and explosive devices carries a maximum potential penalty of five years in prison and a $250,000 fine. Campbell is also charged with receiving, possessing and making a firearm – which definition includes a destructive device – for which the maximum penalty is 10 years in prison and a $10,000 fine.
The charges contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and the Joint Terrorism Task Force (JTTF) of which the North Carolina Highway Patrol, the Federal Air Marshal Service, the Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charlotte Mecklenburg Police Department are members. In making today’s announcement, Acting U.S. Attorney Rose thanked the Belmont Police Department, the Mount Holly Police Department, Gaston County Police Department, the Gastonia Police Department, and the Mecklenburg County Sheriff’s office for their assistance with the investigation.
The case is being prosecuted by Assistant U.S. Attorney and Senior Litigation Counsel Michael E. Savage of the Western District of North Carolina.
Texas Man Sentenced to 14 Years in Prison for Transporting Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Steven Sawyer, 37, of Splendora, Texas, was sentenced today in U.S. District Court by Judge Jon D. Levy to 14 years in prison and 10 years of supervised release for transporting child pornography. Sawyer pleaded guilty to the charge on March 25, 2015.
According to court records, in October 2014, Sawyer, who was in Texas, sent an email message to the undercover email account of a Special Agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Maine. Attached to the email was a video file depicting a young girl engaging in sexually explicit conduct.
The investigation was conducted by HSI. The 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Texas Fugitive Pleads Guilty to Aggravated Identity Theft and Manufacturing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that John Thomas Humphreys (46, Texas) has pleaded guilty to manufacturing counterfeit Federal Reserve notes, false representation of a Social Security number, and aggravated identity theft. He faces a maximum penalty of 25 years in federal prison for the counterfeit note and false representation charges, to be followed by a consecutive mandatory minimum of 2 years in federal prison for the aggravated identity theft charge.
According to the plea agreement, on February 2, 2015, the Green Cove Springs Police Department received information that two individuals, later identified as Humphreys and Joe Eugene Loving, were manufacturing counterfeit Federal Reserve notes in their hotel room at the Astoria Hotel in Clay County. The two men had active arrest warrants for parole violations in Texas and were subsequently arrested at the hotel by deputies from the Clay County Sheriff’s Office. Deputies found a counterfeit $100.00 note on Loving after his arrest.
During an interview with law enforcement, Humphreys and Loving stated, among other things, that they were involved in a drug deal in Texas in December 2014 and had been on the run ever since. They estimated printing and passing at least $10,000.00 in counterfeit currency. In addition, they printed counterfeit checks using the identities of others.
During a subsequent search of the hotel room, agents located a box of personal identification information and financial documents belonging to other individuals, a printer/scanner/copier with counterfeit checks lying on top of it, counterfeit currency, and various computer media which had been used to manufacture the counterfeit currency.
A third individual, Paul Corbin Pennington, Jr., was also charged in this case for passing counterfeit currency. Pennington, a maintenance worker at the Astoria Hotel, loaned Loving and Humphreys his computer to watch movies. Loving and Humphreys used the computer to print counterfeit checks. Pennington confessed to law enforcement officers that he had passed counterfeit currency in Clay County.
On July 9, 2015, Pennington pleaded guilty to one count of passing counterfeit currency. His sentencing hearing is scheduled for October 13, 2015. Loving’s case is set for trial in September 2015.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Green Cove Springs Police Department, the Clay County Sheriff’s Office, and the United States Secret Service Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Tampa Man Sentenced to Twenty Years for Trading Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Richard Donald Ragsdale (57, Tampa) to 20 years in federal prison for transportation and receipt of child pornography. He pleaded guilty on December 18, 2014.
According to the complaint, on May 5, 2014, an undercover agent downloaded child pornography from an Internet Protocol (IP) address that was connected to Ragsdale’s residence. Further investigation revealed online chats by Ragsdale, in which he admitted to having prior sexual contact with children and discussed the sexual abuse of children. On June 24, 2014, a federal search warrant was executed at Ragsdale’s Tampa residence. Agents found hundreds of videos and images depicting child pornography on Ragsdale’s laptop.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Stamford Man Admits Trafficking Marijuana, Agrees to Pay $200,000 to Resolve Forfeiture CaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALAN WILSON, 24, of Stamford, waived his right to indictment and pleaded guilty today in Hartford federal court to one count of possession with intent to distribute 20 kilograms or more of marijuana.
According to court documents and statements made in court, in late 2013, the Stamford Police Department received information that WILSON was selling marijuana from his residence located at 15 Mead Street in Stamford. In January 2014, law enforcement officers conducted a search of WILSON’s residence and discovered 8.77 pounds of marijuana stored in Foodsaver bags and Tupperware containers, a Foodsaver sealing machine and three boxes of new Foodsaver bags, a digital scale, $1,548 in cash, a .32 caliber long revolver, a loaded .22 caliber semi-automatic rifle, a .38 caliber revolver; a .25 caliber automatic pistol, 229 assorted rounds of ammunition and financial records.
WILSON is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on October 14, 2015, at which time he faces a maximum term of imprisonment of five years and a fine of up to $250,000.
As part of the resolution of this case, WILSON also agreed to pay the government $200,000 to resolve a related civil forfeiture action (USA v. 15 Mead Street, Stamford, Connecticut, 3:14cv645).
This matter is being investigated by the Bridgeport Drug Enforcement Administration Task Force and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Michael E. Runowicz.
Shelton Tax Preparer Sentenced to 3 Years in Federal Prison for Preparing and Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BELLARMIN NAMEGABE, 47, of Shelton, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 36 months of imprisonment, followed by one year of supervised release, for preparing false tax returns.
According to court documents and statements made in court, NAMEGABE, while operating a tax preparation business based in Shelton, falsely reported expenses, deductions and credits on numerous clients’ tax returns without his clients’ knowledge or consent. The false returns included fabricated Schedule A’s, Schedule C’s, number of dependents, fuel tax credits and other items.
As part of the investigation, special agents with the Internal Revenue Service – Criminal Investigation Division interviewed 11 of NAMEGABE’s clients who stated that NAMEGABE had falsified their returns. In addition, as part of an undercover operation, an agent simply dropped off his Form W-2 at NAMEGABE’s business, provided his name and some identifying information, such as his Social Security Number, and left. With the information provided, the undercover agent was only entitled to a refund of $632. Approximately two weeks later, the undercover agent’s return was posted to the IRS database. The return was prepared falsely and generated a refund of $3,235.
On December 4, 2014, NAMEGABE pleaded guilty to one count of aiding and assisting the filing of a false tax return.
As part of his sentence, NAMEGABE is required to pay back taxes, penalties and interest related to the false tax returns he prepared during the 2007 through 2011 tax years for the 11 individuals who were interviewed as part of the investigation. The tax loss attributed to those false returns is approximately $240,196.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Sequoia National Park Marijuana Cultivation Operation Results in Federal Prison SentenceRead the Press Release
FRESNO, Calif. — Toribio Cruz-Galvan (Cruz), 30, of Turicato, Michoacán, Mexico, was sentenced today to two years in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.
His sentence follows his guilty plea earlier this year. According to court documents, Cruz was involved in the cultivation of 1,016 marijuana plants and processing 51 pounds of dried marijuana in the Yucca Mountain area of the Sequoia National Park. Although he was not found at the cultivation site, Cruz was linked to the grow site through his fingerprints, which were found on equipment and materials located in the grow site, as well as a supply vehicle intercepted several days before the discovery of the grow site.
The Yucca Mountain area is generally known for its spring wildflower display. In addition to the marijuana plants, park rangers found processed marijuana, a shotgun, ammunition for various firearms, and a digital scale at the cultivation site. The operation caused significant damage to National Park land and natural resources. Fertilizer, rodenticide, propane tanks, and 300 pounds of trash were removed from the grow site. It is estimated that over one million gallons of water was diverted from a nearby spring to irrigate the marijuana plants.
This case was the product of an investigation by the National Park Service. Assistant United States Attorney Karen A. Escobar prosecuted the case.
Salem Man Sentenced to Prison for Defrauding OctogenarianRead the Press Release
During a sentencing hearing this morning in federal court in East St. Louis, Paul P. Gierten, 47, of Salem, Illinois, was sentenced to 15 months in prison on his federal fraud conviction, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The court also ordered Gierten to pay $38,300 in restitution to the victim of his crime.
Gierten pled guilty to the fraud charge on April 21, 2015. Gierten’s conviction relates to his former employment as an investment advisor in Centralia, Illinois. The victim of Gierten’s crime was one of Gierten’s clients. The victim is a military veteran who is in his 80s. In August of 2009, Gierten falsely told the victim that he had an investment opportunity with a business that assisted military victims. Because he is a veteran himself, the victim agreed to invest with this business. From August 2009, through March 2011, the victim provided a total of $39,000 to Gierten for investment in this company. Gierten did not invest the victim’s funds as promised. Instead, Gierten used the victim’s funds for his own personal expenses and to pay operating expenses of his own business.
In commenting on today’s conviction, United States Attorney Wigginton stated: "Any fraud by an Investment Advisor against his or her clients is intolerable. Gierten’s crime was even more heinous, because he took advantage of one of our elderly citizens. I hope today’s sentence sends a message to would-be fraudsters that stealing from elderly persons in Southern Illinois will land you behind bars and my office will continue to pursue restitution for our victim until our victim is made whole."
The investigation was being conducted by the Securities Department of the Illinois Secretary of State’s Office. The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
Rochester Man Pleads Guilty to Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Otis Willis, Jr., 33, of Rochester, NY, pleaded guilty to conspiracy to commit sex trafficking of a minor before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of life in prison and a $250,000 fine. The plea was entered during the trial of this case.Assistant U.S. Attorneys Tiffany H. Lee and Bradley Tyler, who are handling the case, stated that between January 2012 and August 2012, the defendant conspired with Tiffany St. Denis to entice a female victim under the age of 18 to engage in commercial sex acts. Specifically, St. Denis posted ads for the female victim to engage in prostitution and Willis paid for hotel rooms at a Red Roof Inn.
Tiffany St. Denis has been convicted and is awaiting sentencing.
The plea is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Sentencing is scheduled for November 10, 2015 at 3:00 p.m. before Judge Geraci.
Rochester Man Pleads Guilty to Filing False ReturnRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced that today Anselmo Barilla, 48, of Rochester, NY, pleaded guilty before U.S. District Court Judge Charles J. Siragusa to filing a false tax return with the Internal Revenue Service. The charge carries a maximum penalty of three years in prison and a $250,000 fine.Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the defendant was self-employed as a mason in Rochester. For the tax years 2007 and 2008, Barilla underreported the amount of income he had received from his mason business. The total amount of unreported income was $171,364, resulting in the failure to pay federal taxes in the amount of $56,152.
The plea is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
Sentencing is scheduled for November 4, 2015, at 10:30 a.m. before Judge Sirgusa.
Pediatric Services of America and Related Entities to Pay $6.88 Million to Resolve False Claims Act AllegationsRead the Press Release
ATLANTA – 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.
“Participants in federal health care programs are required to actively investigate whether they have received overpayments and, if so, promptly return the overpayments,” said Acting U.S. 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.”
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.”
“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 further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.
Owner of Investment Firm Sentenced to Eight Years for Orchestrating $4.7 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced the owner of a North Carolina investment firm to 96 months in prison today, for orchestrating a Ponzi scheme that solicited victims to invest millions in the foreign currency market (“FOREX”), announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. James H. Mason, 67, of Graham, N.C., was also ordered to serve three years under court supervision and to pay $4,325,820.79 as restitution to the victims of his fraud.
North Carolina Secretary of State Elaine F. Marshall and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), join Acting U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearing, beginning in 2010 and continuing through March 2013, Mason solicited at least 500 victims to invest over $4.7 million in his fraudulent Ponzi scheme. Court records indicate that Mason executed the scheme by inducing victims to invest with his investment companies, “JHM Forex Only Pool” and “Forex Trading at Home Association,” and other related entities, for the supposed purpose of investing in Over-the-Counter (OTC) foreign currency exchange. Mason lulled his victims into a false sense of security by falsely projecting substantial returns on their investments, as much as $100 million, depending on the amount of their initial investment. Furthermore, Mason lied to his victims, falsely claiming that he had over 35 years of experience in commodity futures and options trading, when he had no such experience. According to court records, Mason also failed to disclose to his investor victims a wire fraud conviction in 2000, for which he was sentenced to 18 months in prison.
According to court records, Mason put only a portion of investors’ money into the foreign currency exchange, and lost essentially all the money he did invest while conducting FOREX trading. Court records indicate that Mason failed to disclose his actual trading results to his victims, and instead made false oral representations and provided bogus statements to clients, fraudulently reporting profits. According to court records, in order to induce individuals to further invest in his fraudulent foreign currency commodity pool, Mason established a website so that investors could access their accounts online, which fraudulently depicted that investors were making money – in some cases significant profits – through successful FOREX trading. The profits depicted on individual investor accounts were in fact false, and, in many cases, there was no actual money in the victims’ accounts.
According to court documents, rather than investing the funds as promised, Mason simply deposited victims’ money into various bank accounts he controlled and used a substantial portion of it to pay for personal and business expenses, real estate, cars and other expenses unrelated to any foreign exchange. For example, court records indicate that Mason spent approximately $435,000 of the investors’ money on a residence in Greensboro, N.C., and more than $222,000 for two residences and office space in Hickory, N.C. Court records show that Mason did not claim the additional income on his federal income tax returns filed with the IRS. Mason also used the rest of investors’ money to make “Ponzi” payments to other victims, fraudulently claiming they were “profits” from successful FOREX trading.
Mason pleaded guilty in June 2014 to one count of securities fraud conspiracy and one count of filing a false federal income tax return for tax year 2011. He has been in federal custody since April 2013 and will be transferred to the custody of the Federal Bureau of Prisons upon designation of federal facility. All federal sentences are served without the possibility of parole.
The case was investigated by the North Carolina Secretary of State, Securities Division with assistance from the FBI, Charlotte Division, and IRS-CI. Acting U.S. Attorney Rose also thanked the Commodities Futures Trading Commission for their assistance in this case.
The prosecution is being handled by Special Assistant United States Attorney Kevin M. Harrington and Assistant U.S. Attorney Kurt W. Meyers of the Western District of North Carolina.
Mr. Harrington is an Enforcement Attorney with the North Carolina Department of Secretary of State, Securities Division, and was appointed to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte in September 2011. The SAUSA position is reflection of the partnership between the North Carolina Securities Division and the United States Attorney that helps ensure the effective and vigorous prosecution of white collar criminals, particularly in the area of securities fraud.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Novi Man Sentenced to Prison for Food Stamp Fraud, Perjury and Unlawful Possession of FirearmsRead the Press Release
A Novi man was sentenced to 2 1/2 years in prison on July 30, 2015, for defrauding the Supplemental Nutrition Assistance Program of more than $520,000, perjury before an immigration court, and being a felon in possession of firearms and ammunition, United States Attorney Barbara L. McQuade announced today. Chief U.S. District Judge Gerald E. Rosen imposed sentenced on Laith Dallo, 46. According to information provided to the court at the defendant’s guilty plea and sentencing hearings, from June 2008 through May 2011, Dallo owned and operated Tweeny’s Pizza and Party Shop on McNichols Road in Detroit. During that period, the defendant engaged in a form of federal program fraud known as “discounting” by which SNAP benefits issued to legitimate beneficiaries were sold to Tweeny’s at a discount of approximately 50 percent. Thus, the beneficiaries received cash for half of the value of the SNAP benefits, which were intended for use only for the purchase of authorized food items, while 100 percent of the benefits were credited to Tweeny’s account. The defendant also sold unauthorized products, such as cigarettes and liquor, in exchange for SNAP benefits at highly inflated prices. On May 18, 2011, agents of the U.S. Department of Agriculture Office of Inspector General executed a search warrant at Tweeny’s and discovered two loaded pistols, a loaded semi-automatic rifle and high-capacity magazines in the store, as well as ammunition for the pistols and a holster in Dallo’s vehicle. Dallo was not authorized to possess firearms or ammunition due to prior felony convictions. Dallo testified at a 2010 immigration hearing pertaining to his Application for Asylum and for Withholding of Removal, that he was leading a crime-free life, when, in fact, he was in the midst of executing the SNAP fraud scheme against the government. This testimony resulted in Dallo’s perjury conviction. After serving his sentence in this case, Dallo will be turned over to immigration authorities on their detainer for deportation proceedings. In addition to the custodial sentence, was ordered to pay restitution of $520,962.15. This case was investigated by USDA-Office of Inspector General, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Craig A. Weier.New Haven Man Sentenced to More Than 3 Years in Federal Prison for Bankruptcy and Tax Fraud SchemesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON SHEEHAN, 41, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment, followed by three years of supervised release, for engaging in an extensive bankruptcy and tax fraud scheme. In addition, Judge Thompson sentenced SHEEHAN’s wife, GLORVINA CONSTANT, 36, to one year of probation for participating in a related mortgage fraud scheme.
According to court documents and statements made in court, SHEEHAN was the sole member of a limited liability company known as Infinistaff, LLC, which provided temporary workers to employers. In September 2010, Infinistaff filed a voluntary chapter 11 bankruptcy petition with the Connecticut Bankruptcy Court. As part of the bankruptcy case, SHEEHAN filed operating reports that falsely claimed that another company was being paid to process Infinistaff’s payroll checks and to prepare and file its payroll tax returns and tax payments. During this time, SHEEHAN also falsely represented to the Internal Revenue Service that this other company was making tax deposits under its taxpayer identification number. Although Infinistaff had such an arrangement with the other company for a period of time, the arrangement was terminated at the time SHEEHAN made these representations. After the arrangement with the other company was terminated, SHEEHAN continued to file operating reports with the bankruptcy court indicating that the arrangement was still in place, and that this other company was being paid monthly “administration fees.” SHEEHAN filed these reports in order to conceal his embezzlement of more than $1 million from Infinistaff’s bankruptcy estate.
In addition, between 2011 and 2013, Infinistaff failed to account for and pay to the IRS more than $2.5 million in employment taxes the company had withheld from employee paychecks, and also failed to pay approximately $1.4 million in employer payroll taxes.
The investigation further revealed that CONSTANT received Infinistaff payroll checks totaling $354,000 during the bankruptcy proceedings even though she performed no work for the company.
SHEEHAN and CONSTANT used the stolen money to support a lavish lifestyle, including foreign travel and the purchase of a $650,000 home in CONSTANT’s name.
In 2013, CONSTANT purchased a home using proceeds from a $390,000 mortgage loan she obtained from a local bank, as well as approximately $260,000 embezzled by SHEEHAN from the Infinistaff bankruptcy estate. The mortgage loan application falsely stated that CONSTANT worked for Infinistaff and earned approximately $16,000 per month, when in fact, she did not work for Infinistaff at all. After a bankruptcy trustee was appointed in the Infinistaff bankruptcy case and the company was no longer operating, CONSTANT applied for a second mortgage loan of $131,000 from the bank. CONSTANT again misrepresented on the loan application that she was employed by Infinistaff and earning a substantial salary.
On October 8, 2014, SHEEHAN pleaded guilty to one count of willful failure to collect, account for and pay tax, one count of embezzlement from a bankruptcy estate and one count of making a false declaration statement under penalty of perjury in a bankruptcy case.
On October 7, 2014, CONSTANT pleaded guilty to one count of conspiracy to commit bank fraud.
Judge Thompson will hold a subsequent hearing to determine restitution.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation, with the assistance of the U.S. Trustee Program.
The U.S. Trustee Program is the Department of Justice component that promotes and protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the civil bankruptcy laws. Members of the public can report suspected bankruptcy fraud via email to [email protected].
In the District of Connecticut, the U.S. Attorney’s Office coordinates a Bankruptcy Fraud Working Group that includes representatives from the U.S. Attorney’s Office, the Office of the U.S. Trustee, the Internal Revenue Service – Criminal Investigation Division, the Federal Bureau of Investigation, the U.S. Secret Service, and the Social Security Administration Office of the Inspector General.
This case was prosecuted by Assistant U.S. Attorney Heather Cherry and Senior Litigation Counsel Richard J. Schechter.
New Hampshire Woman Sentenced on Firearm ChargeRead the Press Release
CONCORD, N.H. – Sandra Egbert, 26, of Goshen, New Hampshire, was sentenced today in the United States District Court for the District of New Hampshire to 18 months in federal prison after pleading guilty to conspiracy to make a false statement during the acquisition of a firearm and making a false statement during the acquisition of a firearm, announced Acting United States Attorney Donald Feith. Upon her release, Egbert will be placed on three years of supervised release which is monitored by the United States Probation and Pretrial Services Office.
Beginning in March 2014, agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New Hampshire State Police, New Hampshire Attorney General’s Drug Task Force, Keene Police Department and Boston Police Department were involved in an investigation of the illegal purchase and sale of firearms involving Ronald Scott, Mitchell Riddell and Sandra Egbert. During the investigation, law enforcement learned that Scott, a Massachusetts resident, solicited Riddell, a New Hampshire resident, to purchase firearms. Riddell then solicited Egbert, whom he met in a homeless shelter, to purchase the firearms.
Between March 10, 2014 and April 3, 2015, Egbert purchased nine firearms on four separate occasions. During each transaction, Egbert made a material misrepresentation to the federally licensed firearms dealer by claiming that she was the actual purchaser of the firearm when she was in fact purchasing the firearms for Riddell. One of the firearms purchased by Egbert was recovered in Boston, Massachusetts during a drug arrest. The other eight firearms have not been recovered.
Riddell was convicted of conspiracy to make a false statement during the acquisition of a firearm and sentenced to 37 months imprisonment. Scott was convicted of conspiracy to make a false statement during the acquisition of a firearm, possession of ammunition by a convicted felon and possession with intent to distribute cocaine base (crack) and was sentenced to 33 months imprisonment.
“Straw purchasing is designed to avoid the regulatory controls implemented to ensure that firearms are possessed only by those individuals who may legally own them, said Acting United States Attorney Donald Feith. “Our office will work with laws enforcement to investigate those individuals who seek to end run the regulatory scheme and prosecute those who put firearms in the hands of those persons not legally entitled to possess them.”
“ATF will continue to combat firearms trafficking, especially the use of straw purchasers to facilitate this illegal trade,” stated ATF Special Agent in Charge Daniel Kumor. “We will aggressively pursue straw purchasers of firearms because they are responsible for placing guns into the hands of criminals and for placing public safety in jeopardy.”
The case was investigated by ATF, New Hampshire State Police, New Hampshire Attorney General’s Drug Task Force, Keene Police Department and Boston Police Department. The case was prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Miami-Dade County Brothers Sentenced to 70 Months in Prison for Identity Theft Schemes Involving Unemployment Insurance Fraud and Federal and State Tax FraudRead the Press Release
Two Miami-Dade County brothers were each sentenced to 70 months in prison for identity theft schemes involving unemployment insurance fraud, federal income tax fraud, and state income tax fraud.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Densom Beaucejour, 22, and Winzord Beaucejour, 21, both of Miami Gardens, each previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, the investigation in this case began in January 2015, when a local police officer reported that he/she was the victim of identity theft and that a fraudulent unemployment insurance claim had been filed in his/her name. A subsequent investigation by federal law enforcement revealed that 234 fraudulent unemployment claims were filed from the defendants’ residence. The total intended loss associated with these claims is $239,510.
On March 11, 2015, law enforcement agents executed a federal search warrant at the defendants’ residence. Inside several bedrooms in the defendants’ home, law enforcement found numerous sheets of paper, ledgers, and other documents with personal identifying information (PII) – including names, dates of birth, and Social Security numbers – of more than 1,000 individuals. Agents also discovered three handguns, $8,600 in cash, and several credit cards embossed with names of individuals who did not appear to live at the defendants’ residence. Approximately 365 fraudulent tax returns were filed with the IRS from the residence seeking $413,279 in fraudulent tax refunds, as well as 2 fraudulent state tax returns with Ohio seeking $15,004. In total, the amount of intended loss is $917,973.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
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.
Mexican National Trafficking Methamphetamine in Yakima Sentenced to 10 Years in Federal PrisonRead the Press Release
Spokane - Michael C. Ormsby, the United States Attorney for the Eastern District of Washington, announced today that Armando Godinez-Ramos, age 33, of Michoacán, Mexico, was sentenced for possession with intent to distribute methamphetamine. United States District Court Judge Salvador Mendoza, Jr., sentenced Godinez-Ramos to a 10 year term of imprisonment, to be followed by an 8-year term of court supervision upon release from Federal prison
According to information disclosed during the court proceedings, on July 22, 2014, Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI) arrested Godinez-Ramos on a federal immigration warrant. During the execution of a search warrant for his residence, officers located drugs and drug trafficking tools, including approximately 300 grams of methamphetamine, 120 grams of heroin, a drug cutting agent, surveillance cameras, and a firearm. Godinez-Ramos has prior convictions for alien in possession of a firearm and delivery of methamphetamine.
Michael C. Ormsby said, “I commend the officers of ICE/HSI, ATF, the Yakima DEA Drug Task Force, and the Yakima Police Department for their efforts in investigating this methamphetamine case. Their strong working partnership is reflected by the successful prosecution of this case. Federal and local law enforcement officers in the Eastern District of Washington continue to work together to root out the scourge of drug trafficking in this District. With their assistance, the United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting aggressively and seeking appropriate punishment for traffickers distributing controlled substances in our communities.”
This case was investigated by the cooperative efforts of ICE/HSI, ATF, the Yakima DEA Drug Task Force, and the Yakima Police Department. The case was prosecuted by Ian L. Garriques, Assistant United States Attorney for the Eastern District of Washington.
Memphis Man Pleads Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
ERIE, Pa. – A resident of Memphis, Tennessee, pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Saburi Adeyemi, 58, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Adeyemi obtained stolen identity information which he shared with co-conspirators who used that information to file fraudulent federal tax returns seeking tax refunds. The information provided by Adeyemi was also used to open bank accounts that were used as repositories for the fraudulently obtained federal tax refunds.
Judge Cercone scheduled sentencing for December 7, 2015. The law provides for a maximum total sentence of 20 years in prison, a maximum fine of $250,000 or twice the amount of loss to the victims, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation leading to the indictment in this case.
Martinsburg man sentenced for unlawful distribution of explosivesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Chris O’Connor, 37, of Martinsburg, was sentenced today to 12 months in prison for unlawful distribution of explosives, United States Attorney William J. Ihlenfeld, II, announced.
In December 2014, O’Connor sold explosives in Berkeley County, West Virginia without the requisite license. He pled guilty in May 2015 to a criminal Information charging him with one count of “Unlicensed Distribution of Explosive Materials.”
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Martinsburg man convicted of heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Jose Roberts, 62, of Martinsburg, was convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
A federal grand jury recently charged Roberts with multiple heroin trafficking offenses following the death of a female victim who used heroin allegedly purchased from Roberts in Berkeley County, West Virginia in May 2014.
Roberts, also known as “Jose,” pled guilty today to a criminal Information charging him with one count of “Aiding and Abetting Distribution of Heroin.” As a result of the plea agreement executed today, Roberts will be sentenced to 84 months in prison.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office led the investigation.
U.S. Magistrate Judge Robert W. Trumble presided.
Man Who Placed Improvised Explosive Device at Colorado Springs Building Pleads GuiltyRead the Press Release
DENVER – Thaddeus Cheyenne Murphy, age 44, of Colorado Springs, Colorado, pled guilty this morning before U.S. District Court Judge William J. Martinez to damage to a building by means of fire and explosion and felon in possession of a firearm, U.S. Attorney John Walsh, FBI Denver Division Special Agent in Charge Thomas Ravenelle and ATF Denver Division Acting Special Agent in Charge David Booth announced, in conjunction with the Colorado Springs Police Department. Judge Martinez is scheduled to sentence Murphy on November 3, 2015 at 2:00 p.m. Murphy, who appeared at the hearing in custody, was remanded at its conclusion.
Murphy was first charged by Criminal Complaint on February 20, 2015. He was indicted by a federal grand jury in Denver on February 23, 2015. He pled guilty today, August 3, 2015. According to the stipulated facts contained in the plea agreement, on January 6, 2015 at 10:48 a.m., the Colorado Springs Police Department (“CSPD”) received a 911 call about an explosion that occurred at 603 S. El Paso Street in Colorado Springs, Colorado. The caller said someone tried to blow up the building by putting stick of dynamite next to a container of gasoline and lighting it. He, along with others, reportedly heard a huge explosion inside the building. When one of the building’s occupants went outside, he saw a gas can sitting next to the building where the explosion happened.
The explosion occurred at the northeast (back) corner of the building. The building houses two businesses, including Mr. G’s Hair Design Studios and the Colorado Springs Chapter of the National Association for the Advancement of Colored People (“NAACP”). The business closest to the explosion was Mr. G’s Hair Design Studios. The NAACP was on the south side of the building opposite the blast site. Also on the building was a sign that read “Income Tax”, but that business had not been active for some time.
Investigators arrived and examined the scene of the blast. The building had charring on its side and a concrete wall about six feet away had also been damaged. The resultant damage was minimal. At the blast site itself, investigators found a piece of metal pipe as well as a piece of a road flare and the gas can. The gas can, which was about ¾ full, failed to ignite. Analysis of the material recovered from the scene showed that the device used to cause the explosion and fire at the building was an improvised explosive device (“IED”) commonly known as a pipe bomb.
Witnesses told investigators that the person who placed the bomb was a white male, in his 30s or 40s, either bald or close shaved hair with a medium to heavy build. Witnesses also described the suspect vehicle as a white truck with a black or dark colored hood. They said the tailgate of the truck was up before the blast, but was left down after the blast driving away from the scene. Through investigation, agents found surveillance video from a residence in a neighborhood near. The video showed a distinctive white Ford truck with a black hood driving toward the location with its tailgate up shortly before the blast; and, the same distinctive truck driving away from the location with its tailgate down right after the blast.
A Colorado Springs Police Department detective familiar with the investigation found a truck matching the description, and investigators found that it matched the truck from the surveillance video. Investigators observed the truck parked at the defendant’s residence, and found that the truck was registered to the defendant. In reviewing the defendant’s driver’s license photo, investigators also found the defendant matched the description of the suspect given by the witnesses. A records check of the defendant’s criminal history showed that he had previously been convicted of two felony thefts, crimes punishable by a term exceeding one year.
Agents from the FBI-JTTF obtained a search warrant for the defendant’s truck and residence. When they executed the warrant, agents found seven (7) firearms inside the residence, including two assault rifles, a handgun, two shotguns, and a WWII era Russian made battle rifle. A homemade silencer was found with the firearms as well. Investigators also found components left over from the defendant’s IED, including the remaining road flares, galvanize pipe, “Dragon’s Breath” shotgun shells, and duct tape.
Agents determined that the defendant made the pipe bomb in his garage out of galvanized pipe and a “Dragon’s Breath” shotgun shell. He placed the pipe bomb, along with a gas can, on the back side of the building and lit the bomb fuse with a road flare. The defendant told investigators that he placed the bomb in an effort to get back at his former accountant who had failed to return the defendant’s calls. The defendant admitted that he knew he was not allowed to possess firearms because he was a convicted felon.
Murphy faces not less than 5 years, and up to 20 years in federal prison for arson of a building, and not more than 10 years in federal prison for being a felon in possession of a firearm. There is also a fine of not more than $250,000 for each of the two counts.
This case was investigated by the FBI’s Colorado Springs Joint Terrorism Task Force, the ATF, and the Colorado Springs Police Department with support from the El Paso County Sheriff.
The defendant is being prosecuted by Assistant U.S. Attorney Gregory Holloway.
Louisville Man Charged with Enticement, Production, Distribution and Possession of Child PornographyRead the Press Release
Defendant used 16 different minors to produce child pornography using social media
LOUISVILLE, Ky. – A Louisville man previously employed by a parochial high school located in Jefferson County, Kentucky, as a high school teacher and assistant coach with the school’s athletics department, was charged in a felony Information, filed on July 31, 2015, with violating child exploitation laws, announced United States Attorney John E. Kuhn, Jr. Under certain circumstances a person can be charged by Information rather than Indictment. The case, Criminal Action Number 3:15CR-83-DJH, will be set for an arraignment and change of plea hearing by further Order of the Court.
Patrick Newman, age 33, had previously been charged by Criminal Complaint with engaging in unlawful online communications resulting in the production of child pornography with a 13-year-old male (“John Doe”). He now faces 16 counts of knowingly using, persuading, inducing, enticing, or coercing minors to produce child pornography that was transported in interstate or foreign commerce. The charges involve 16 different victims. Additionally, Newman is charged with online enticement, distributing and possessing child pornography.
According to the Affidavit attached to the criminal complaint, the investigation started earlier this year when the National Center for Missing and Exploited Children received a CyberTip from Twitter, Inc. regarding the upload of child pornography materials to VINE (a video sharing website owned by Twitter) from the same IP address in Texas, between 12-28-2014 and 12-30-2014. Law enforcement officials in Texas identified the child depicted in the images and later identified Newman as the adult who had been communicating with the child and obtaining sexually explicit images of the child.
Law enforcement officials executed a federal search warrant on Newman’s Louisville home. Homeland Security Investigations (HSI) within the Department of Homeland Security (DHS) arrested Newman that same day. He has remained in federal custody since June 1, 2015.
Upon conviction, Newman faces a mandatory minimum prison term of 15 years followed by 5 years of Supervised Release. The maximum potential penalties are life in prison, a $4,750,000.00 fine, and up to and including a life period of Supervised Release.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by HSI Louisville Division of the Department of Homeland Security.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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The charging of a person by an Information is an accusation
only and that person is presumed innocent until and unless proven guilty.