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28 July 2015
Former HUD-OIG Special Agent in Charge Convicted of Making False Statements to Obtain a LoanRead the Press Release
ATLANTA - Herschell Harvell, Jr., a former Special Agent in Charge with the Office of Inspector General for the Department of Housing and Urban Development, has been convicted of two counts of making false statements to First Tennessee National Bank, N.A., to obtain a loan, after a one week jury trial.
“Harvell, who was a federal law enforcement officer with supervisory responsibility for mortgage fraud investigations and other matters involving false statements, violated the law he was sworn to enforce by making false statements to obtain a loan to finance his own private business interests,” said Acting U.S. Attorney John Horn.
“Mr. Harvell’s conviction demonstrates our commitment to bringing to justice all bad actors, even when that misconduct occurs within our very own organization. I am profoundly disappointed at the break down of trust and the violation of laws of this former employee. As this conviction shows, these ethical lapses are neither tolerated nor condoned,” said David A. Montoya, Inspector General of the Department of Housing and Urban Development.
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: The Office of Inspector General (OIG) for the Department of Housing and Urban Development (HUD) investigates and prevents fraud and abuse in HUD programs. Harvell began his career with HUD-OIG as a Special Agent and in 2003, was promoted to Assistant Special Agent in Charge for HUD-OIG’s Region 9, which is based in Los Angeles, California, and encompasses several western states. Harvell was promoted in 2008 to Special Agent in Charge for the HUD-OIG region based in Fort Worth, Texas, and later served as the Special Agent in Charge of HUD-OIG’s Region 4, based in Atlanta, Georgia. As a Supervisory Special Agent, Harvell oversaw and supervised mortgage fraud investigations, as well as other matters involving false statements affecting HUD programs.
In 2008, while stationed in Los Angeles, Harvell maintained a portfolio of six rental homes in the Atlanta area, all of which were mortgaged, with monthly payments in various amounts. In addition, between January and March 2008, Harvell acquired and opened a Precision Tune automobile care franchise, also in the Atlanta area. The start-up costs for the owner of a new franchise location, such as Harvell’s, ranged from $100,000 to over $200,000. To fund the costs of his new business, in February 2008, Harvell cashed in a certificate of deposit that he held worth approximately $70,000. Over the next five weeks, Harvell spent this amount and more on his Precision Tune business and other expenses, including payments on his rental homes.
On March 25, 2008, Harvell obtained additional cash by refinancing one of his rental homes. Harvell attended closing and signed a loan application and other documents to obtain a refinance loan for $165,000 from First Tennesse Bank, N.A. Harvell received approximately $23,000 from this loan. Although he had cashed in and spent the certificate of deposit and additional funds, Harvell’s loan application falsely stated that he still owned this certificate of deposit. In addition, Harvell’s loan application falsely stated that he received a total of $6,180 per month in rental income from his portfolio of investment homes. Although some of Harvell’s houses were rented, he was receiving roughly half that amount, or less, on a monthly basis when he closed the loan. Harvell’s loan application also failed to disclose his Precision Tune business and associated costs and liabilities that he was incurring to open that business.
In addition, Harvell’s loan application stated that his permanent residence was in Georgia. During the course of approving the loan, First Tennessee Bank’s underwriter asked Harvell to explain a Los Angeles post office box that appeared on Harvell’s bank statements. The underwriter posed this question to determine whether Harvell had living expenses in Los Angeles that were not disclosed on his loan application. In response to the underwriter’s question, Harvell wrote a letter falsely stating that his employment required him to work in California during the weekdays and that he resided with relatives while on work assignments there. In truth, Harvell lived in Los Angeles and paid rent there, which was not disclosed to the underwriter.
While in Atlanta to close the loan from First Tennessee Bank on March 25, 2008, Harvell applied to a different lending institution for a cash-out refinance loan on a different investment property. When this second loan closed on April 14, 2008, Harvell received over $17,000. Harvell’s loan application contained the same false statements and omissions as his March 25, 2008, loan application to First Tennessee Bank.
Sentencing for Harvell has been scheduled for 2:30 p.m. on October 1, 2015, before United States District Judge William S. Duffey, Jr.
This case is being investigated by the Department of Housing and Urban Development, Office of Inspector General, Special Investigations Division, Washington, DC.
Assistant United States Attorney Douglas W. Gilfillan is prosecuting the case.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Department of Defense Contractor Charged with Making a False Statement and Damaging Army ComputersRead the Press Release
BOSTON – Charges were unsealed today in federal court against a former Department of Defense (DOD) contractor for the U.S. Army in Kuwait for making a false statement on his security clearance form and for damaging Army computers.
Wei Chen, 61, of Westfield, Mass., was charged with one count of making a false statement and one count of damaging computers. The indictment, which was filed on July 23, 2015, was unsealed today after Chen’s arrest.
According to the indictment, Chen, a computer system administrator, applied for a job as a DOD contractor – a job that required him to have a Secret-level security clearance. To obtain that clearance, he needed to complete a questionnaire called the SF86, on which he acknowledged that he knew that a false statement on the form could be punished by imprisonment. Nonetheless, in response to the form’s question about whether he had ever served in a foreign country’s military, Chen falsely answered, “no.” In fact, Chen, who is a naturalized U.S. citizen, served from approximately 1971 to 1976 in an anti-aircraft unit in China’s People’s Liberation Army.
After making this false statement on the SF86, the indictment charges, Chen was hired as a DOD contractor and worked as a system administrator at Camp Buehring, a large U.S. Army base in Kuwait. Chen knew that Army policy prohibited personnel from connecting personally-owned thumb drives to Army computer systems. Chen also knew that personnel were prohibited from connecting even government-owned thumb drives to Army computer systems unless they had received a specific exemption from this policy. Chen had not received such an exemption.
The indictment charges, on approximately June 15 and 16, 2013, in violation of Army computer security policy, Chen connected one or more personally-owned thumb drives to computers at Camp Buehring that were connected to the Army’s unclassified network and the classified Secret-level network. After connecting his personally-owned thumb drive to the Secret-level network server, Chen made an effort to cover his tracks and hide his security violation. Specifically, he deleted network logs on the server that would have documented his connection of the personally-owned thumb drive to the network server. Chen also copied a computer file, containing saved e-mail and documents, from his Secret-level workstation onto his personally-owned thumb drive, in violation of Army computer security policy.
“National events over the past several years have highlighted the critical role that cyber security plays in protecting our national security,” said United States Attorney Carmen M. Ortiz. “Military employees and DOD contractors must understand that, if they lie to obtain a security clearance or intentionally violate computer security policies and then destroy evidence of that violation, they are committing crimes and we will prosecute them.”
“As charged, Mr. Chen lied about his background, violated Army security policies, and attempted to destroy the evidence,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division. “Being granted and appropriately maintaining a Secret or Top Secret security clearance by the U.S. Government to safeguard information on our military bases is a tremendous privilege and responsibility. Failure to uphold that responsibility threatens our national security.”
"Mr. Chen allegedly abused his position as a system administrator to circumvent U.S. Army cybersecurity controls, improperly access classified information, and delete evidence of his wrongdoing," said Daniel Andrews, Director of the Computer Crime Investigative Unit of the U.S. Army Criminal Investigation Command. "Insider threats pose a serious risk to national security and military operations, and we will continue to work closely with our partners to prosecute those who engage in this type of criminal activity."
On the charge of damaging a computer, Chen faces a maximum sentence of 10 years in prison to be followed by three years of supervised release, a fine of $250,000 and forfeiture. On the false statement charge, the maximum sentence is five years in prison to be followed by three years of supervised release, a fine of $250,000 and forfeiture. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz, Special Agent in Charge Lisi and Director Andrews made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Adam Bookbinder, of Ortiz’s Cybercrime Unit, and Stephanie Siegmann, of Ortiz’s Anti-Terrorism and National Security Unit.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Chippewa Cree Official Pleads Guilty to Bribery, TheftRead the Press Release
GREAT FALLS – Former Chippewa Cree Tribal official Timothy Warren Rosette, 52, of Box Elder, pleaded guilty today to two counts of bribery and one count of theft of tribal funds, according to the United States Attorney’s Office. Rosette had been charged in three indictments handed down by a federal Grand Jury investigating corruption in Indian Country. Rosette appeared before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas.
Rosette’s sentencing is set for October 29, 2015, at the Missouri River Courthouse in Great Falls.
The maximum sentence on the two counts of bribery is 10 years imprisonment, a $250,000 fine, and three years of supervised release. On the charge of theft from an Indian tribal organization, Rosette faces a maximum sentence of 5 years imprisonment, a $250,000 fine, and three years supervised release. All sentences could be imposed consecutively. Rosette will also be responsible for restitution to repay the tribe for losses associated with his crimes.
Rosette has occupied positions of tribal authority at Rocky Boy’s for several years. During the period of the indictments—April 2009 to December 2012—Rosette served as the Director of the Rocky Boy Health Clinic’s Environmental Health Unit, with authority to select contractors, award contracts and approve contract payments relating to the tribe’s community water supply (lagoons, pipes, sewers, storm drains, etc.). During the same period, Rosette was also the Director of the tribe’s Roads Division with authority to select contractors, award contracts, and approve contract payments relating to the roads, highways, easements, and bridges on the reservation.
The Grand Jury had charged Rosette with accepting hundreds of thousands of dollars in bribes and gifts from Hunter Burns Construction and Dr. James Eastlick, Jr, who held a 49% ownership interest in Hunter Burns Construction. Rosette was also alleged to have received cash kick-backs from Havre businessman Shad Huston, who was acting on behalf of a local trucking company—K Bar K Trucking—and that Rosette facilitated fraudulent claims on behalf of other Huston companies such as TMP Services and K & N Consulting. In Tuesday’s hearing, Rosette admitted taking bribes or gratuities from Eastlick and Huston and accepting and submitting a fraudulent claim from TMP Services in 2012 resulting in a $30,000 loss to the tribe.
Dr. Eastlick previously pleaded guilty to several felonies related to bribery, embezzlement, and tax evasion and was sentenced on March 18 to six years in prison. Huston is currently facing 15 felony charges contained in five separate indictments. He is awaiting trial. Huston’s companies, TMP Services and K & N Consulting, were also indicted and will be tried with Huston.
The case was brought by the federal agents of the Guardians Project and was investigated by the agents of the Offices of Inspector General of the Departments of Interior, Health and Human Services, and Environmental Protection Agency, as well as by the Internal Revenue Service’s Criminal Investigation Division.
Additional details about the crimes to which Rosette entered guilty pleas can be found on PACER in the Government’s Offer of Proof.
Florida Resident Charged with Attempting to Use Weapon of Mass DestructionRead the Press Release
Defendant, Allegedly Inspired by ISIL, Attempted to Obtain Weapons and Explosives to Conduct Attacks
Harlem Suarez, also known as Almlak Benitez, 23, of Key West, Florida, was charged by a criminal complaint with attempting to use a weapon of mass destruction against a person or property within the United States.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
“According to the complaint, Harlem Suarez, a self-professed ISIL adherent, knowingly attempted to use a weapon of mass destruction - a backpack bomb - in the United States,” said Assistant Attorney General Carlin. “Stopping attacks on our homeland by those inspired or directed by designated foreign terrorist organizations is the highest priority of the National Security Division.”
“The top priority of the Department of Justice is to protect the security of the American people,” said U.S. Attorney Ferrer. “The U.S. Attorney’s Office, in collaboration with the FBI, works tirelessly to advance this mission by continuing to thwart home-grown acts of terrorism.”
“There is no room for failure when it comes to investigating the potential use of a weapon of mass destruction,” said Special Agent in Charge Piro. “The FBI and our local, state and federal partners work around the clock to prevent such catastrophic weapons from being used against our citizens. Even so, we ask the public to be vigilant and report suspicious activity to law enforcement.”
According to the complaint, in April 2015, Suarez came to the attention of the FBI due to Facebook posts that contained extremist rhetoric and promoted the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The complaint further alleges that Suarez told the confidential source that he wanted to make a “timer bomb.” Suarez purchased components for this device, which was to contain galvanized nails, be concealed in a backpack and be remotely detonated by a cellphone. Suarez intended to bury the device at a public beach in Key West and then detonate it.
On July 27, 2015, Suarez took possession of an inert device and was arrested.
Assistant Attorney General Carlin and U.S. Attorney Ferrer commended the investigative efforts of the FBI, members of the South Florida Joint Terrorism Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives , U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), the Key West Police Department, the Monroe County Sheriff’s Office and the Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert and Trial Attorneys Clement McGovern and Michael Dittoe of the Justice Department’s Counterterrorism Section.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Florida Man Charged with Bribing Officials at Georgia Military BaseRead the Press Release
A former agent for a large national trucking company was indicted for paying bribes to officials at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, in order to obtain lucrative freight hauling business from the base. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.
Ivan Dwight Brannan, 60, of Jupiter, Florida, is charged by indictment with one count of conspiracy to bribe a public official and three counts of bribery of a public official.
From 1999 to 2013, Brannan worked as a broker for a national trucking company that delivers both commercial and military freight. According to the indictment, he was paid a commission for each delivery that he arranged.
According to the allegations in the indictment, from 2006 to 2012, Brannan provided cash and other items of value to Mitchell Potts, a former Traffic Office Supervisor for the Defense Logistics Agency (DLA) at MCLB-Albany, for the purpose of ensuring that Brannan’s trucking company client was awarded business at MCLB-Albany. The indictment also alleges that Brannan directed truck driver David Nelson to provide cash to both Potts and Jeffrey Philpot, another official in the DLA Traffic Office at MCLB-Albany, to ensure that the trucking company continued to receive MCLB-Albany’s business. According to the indictment, over the course of the conspiracy Nelson paid at least $120,000 in bribes to Potts and Philpot at Brannan’s behest.
In October 2014, Philpot, Nelson and Potts each pleaded guilty to one count of bribery of a public official. They are scheduled to be sentenced on Sept. 29, 2015.
The charges and allegations in an indictment are merely accusations. A defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service and the Defense Criminal Investigative Service. The case is being prosecuted by Trial Attorney John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.
Five Charged with Paying and Accepting Bribes and GratuitiesRead the Press Release
Federal charges were filed, by information, against five individuals for paying and accepting bribes and gratuities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Pamela Bondi, Florida Attorney General, and Margaret Moore-Jackson, Special Agent in Charge, United States Social Security Administration, Office of Inspector General (SSA-OIG), Shimon R. Richmond, Special Agent in Charge, Miami Region, United States Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Irma Davidian, 52, of Boca Raton, is charged with conspiracy to commit bribery in programs receiving federal funds and commit health care fraud; and conspiracy to give a gratuity to a public official, both, in violation of Title 18, United States Code, Section 371.
Gladys Roman, 47, and George Lopez, 35, both of Pompano Beach, are charged in a separate information, with conspiracy to commit bribery in programs receiving federal funds and commit health care fraud, in violation of Title 18, United States Code, Section 371.
Maria Sanchez, 50, of Pembroke Pines, is charged with conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371.
Alejandro Lomoso, 56, of Southwest Ranches, is charged with conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371.
According to allegations contained in documents filed with the court, Davidian was in the business of representing persons who sought to obtain government benefits, including Social Security, Medicaid and Food Stamp benefits. Davidian would claim that, for a payment ranging from $2,000-$5,000, she could obtain those benefits for individuals regardless of their personal circumstances. Roman was employed by the Florida Department of Child and Family Services (DCF) as an interview clerk and inputted information from those persons applying for Medicaid and Food Stamps benefits into a DCF computer. The Medicaid applications would then be assigned to a DCF case worker whose job title was an Economic Self-Sufficiency Specialist (ESS).
The court documents allege that, in or about April 2009, Roman submitted applications to DCF on behalf of Davidian’s clients and did so from her home or a public library and would add or change information to enhance the application.Davidian repeatedly asked Roman if there was an ESS worker at DCF who Davidian could pay to approve DCF applications.Lopez was an ESS for DCF.His duties included approving or denying requests for Medicaid and Food Stamp benefits.In or about 2012, Lopez agreed that, in exchange for money, he would approve applications submitted by Davidian on behalf of her clients.
In addition, court records allege that every other week, Davidian submitted applications on behalf of her clients to Roman so that they could be forwarded to DCF.Davidian submitted fraudulent documents with some of the applications in order to make it appear that her clients met the benefit requirements. Davidian instructed Roman to assign Lopez as the ESS worker in order to ensure that some of the fraudulent applications would be approved.
According to allegations, Roman would then fraudulently approve benefits for applicants who were not otherwise qualified.If benefits for Medicaid or Food Stamps were properly denied by another DCF employee, Lopez logged into the DCF computer system and overrode the denial and approved the benefits. Beginning in or about 2012 through in or about January 2014, every other week, Davidian paid Roman and Lopez each $500.As a result of the scheme, Roman and Lopez assisted Davidian to seek more than $5,000,000 in fraudulent benefits.
Court records further allege that Sanchez and Lomoso worked as claims representatives for the SSA.From in or about 2008 through in or about early 2011, Sanchez and Lomoso would periodically receive applications from Davidian on behalf of persons seeking SSA benefits.In exchange for payment, Sanchez and Lomoso would expedite and/or modify the application process.Davidian gave, offered, and promised approximately $9,500 in U.S. currency to Lomoso and approximately $13,000-$15,000 to Sanchez in exchange for performing their official acts.
If convicted, Davidian faces a statutory maximum term of imprisonment of 10 years’ imprisonment and/or a fine of up to $500,000 and may be ordered to pay restitution.If convicted, defendants Roman, Lopez, Sanchez, and Lomoso each face a statutory maximum term of imprisonment of 5 years’ imprisonment and/or a fine of up to $250,000 and may be ordered to pay restitution.
In conjunction with the federal charges, the following individuals were arrested and charged by the Florida Attorney General’s Medicaid Fraud Control Unit:
Alexey Mesiatsev, 61, of Wellington, FL
Ilya Massarsky, 38, of Sunny Isles Beach, FL
Lyudmila Ustakova, 46, of Boca Raton, FL
Maryna Makhnyeva, 37, of Boca Raton, FL
Natalya Krichevskaya, 49, of Ft. Lauderdale, FL
Olga Maximova, 53, of Sunny Isles Beach, FL
Sergei Berezin, 43, of Boca Raton, FL
Lyudmila Pereverzeva, 56, of Hallandale Beach, FL
The total loss to the Florida Medicaid program as a result of the defendants alleged conduct is more than $2.7 million.
Mr. Ferrer commended the investigative efforts of the FBI, Florida Attorney General’s Office, SSA-OIG, HHS-OIG, MFCU and the Florida Department of Children and Families OIG.Attorney General Pam Bondi’s Office of Statewide Prosecution will handle the state law violations.The federal matters are being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Thomas P. Lanigan.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Suspected Medicaid fraud can be reported to the Department of Justice through www.stopmedicarefraud.gov or 800-447-8477, or the Florida Attorney General’s Office by calling the hotline telephone at 866-966-7226 or by filing a complaint at http://myfloridalegal.com.
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 http://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 http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Jury Convicts Texas Couple of Drug and Money Laundering ConspiraciesRead the Press Release
Aldo Villarreal, 46, of McAllen, Texas, was found guilty today by a federal jury of conspiracy to possess and distribute cocaine and marijuana, and conspiracy to commit money laundering, announced David Rivera, United States Attorney for the Middle District of Tennessee. Villarreal’s wife, Juana Edith Vela-Salinas, 41, also of McAllen, Texas was found guilty of conspiracy to commit money laundering,
The jury returned its verdict following a two-week trial before Senior U.S. District Judge William J. Haynes, Jr.
The evidence at trial showed that, between 2008 and 2011, Villarreal was a manager in an extensive drug operation that distributed hundreds of kilograms of cocaine in Nashville and Atlanta, and distributed hundreds of kilograms of marijuana in Nashville. The evidence at trial was that the drugs were imported from Mexico into Texas before being transported to Atlanta and Nashville. The evidence also showed that Villarreal and Vela-Salinas conspired to launder the proceeds of that drug operation through a variety of methods, including the purchase of used vehicles in Nashville and the subsequent sale of vehicles at El Shadai, a used car lot the defendants owned and operated in Edinburg, Texas.
The underlying federal wiretap investigation was the same investigation about which former Wilson County Sheriff’s Office Deputy John Edwards sought to sell information to targets of the investigation in 2011. Edwards was indicted for obstruction of justice on April 20, 2011, and Judge Haynes sentenced Edwards to serve 220 months in prison on May 2, 2012.
Villarreal faces a maximum penalty of life in prison, and a maximum fine of $10,000,000, for his conviction on the drug conspiracy charge. Both defendants face up to 20 years in prison, and a fine of up to the value of the funds they laundered, for their convictions on the money laundering charge. The parties agreed that the two forfeiture counts alleged in the indictment will be resolved at sentencing by Senior Judge Haynes. A sentencing date has not yet been set.
The case was investigated by the FBI; the DEA; the Internal Revenue Service-Criminal Investigation; the Department of Homeland Security; the Metropolitan Nashville Police Department; the Wilson County Sheriff’s Office, and the Lebanon Police Department. The case was prosecuted by Assistant U.S. Attorneys Brent A. Hannafan and Ben Schrader.
Federal Jury Convicts Florida Man in Resort Timeshare Telemarketing Fraud Conspiracy that Victimized Persons over Age 55Read the Press Release
DALLAS — Following a nine-day jury trial before U.S. District Judge Sidney A. Fitzwater, a federal jury has found one of the ten conspirators in an estimated $10 million resort timeshare telemarketing fraud conspiracy that victimized at least 5000 individuals, many of whom were over age 55, guilty on all 26 counts of an indictment returned in the Northern District of Texas in October 2012. John Parker, U.S. Attorney for the Northern District of Texas, made the announcement today.
Fabian C. Fleifel, 45, of Winter Springs, Florida, was convicted late yesterday on one count of conspiracy to commit mail fraud, wire fraud, and bank fraud; nineteen counts of mail fraud telemarketing; and six counts of wire fraud telemarketing. The jury also found that the conspiracy count affected a financial institution and that the wire fraud and mail fraud counts were in connection with the conduct of telemarketing that victimized ten or more persons over the age of 55. He faces a maximum statutory penalty of 30 years in federal prison and a $1 million fine on the conspiracy conviction and 20 years in federal prison and a $250,000 fine on each of the other 25 convictions. Additionally, the telemarketing enhancements permit the Judge to impose up to an additional 10 years imprisonment. Judge Fitzwater temporarily remanded him into custody following yesterday’s verdict.
The following eleven coconspirators have pleaded guilty to their respective roles in the scheme and are awaiting sentencing, Edmond Charles Burke, 34, of Sanford, Florida; Kari Lynn Cash, 46, of Winter Park, Florida; Kevin Jacob Frater, 35, of Longwood, Florida; Bradley James Gomez, 36, of Longwood, Florida; Rani F. Khoury, 40, of Lake Mary, Florida; Courtney Darrell Lister, 39, of Midland, Texas; Joseph Bud Ramos, 27, of Tennessee; Armanda Nadine Rizkallah, 32, of Oviedo, Florida; Eric Rosado, of Orlando, Florida, Kevin Sanchez of Orlando, Florida, and Cesar Trinidad of Apopka, Florida.
The government presented evidence during trial that Fleifel conspired with others to make unsolicited interstate telephone calls to owners of resort timeshare properties to induce them into paying fees associated with the bogus sale of their property. Fleifel and others opened bank accounts and entered into merchant account agreements to process and collect funds raised in the scheme, and they set up phony mailing addresses to collect funds mailed in by timeshare owners.
Fleifel hired and trained telemarketers to work in boiler rooms he set up. These telemarketers were instructed to call timeshare owners using scripted sales pitches that falsely represented, for example, that a bona fide buyer was interested in buying their property, that the buyer had paid money into an escrow account, and that the buyer was ready to close on the property. The telemarketers falsely advised timeshare owners that they would receive all the funds from the sale within days, they must pay a one-time fee to cover the title search and other closing costs, and they would be refunded all fees paid if the sale did not close within 90 days.
After the conspirators obtained money from the timeshare owners, they made additional false and fraudulent statements to lull them and to keep them from investigating the transactions, complaining to law enforcement, or requesting charge backs to their credit cards
The case was investigated by the U.S. Postal Inspection Service and the Orlando Police Department. Assistant U.S. Attorneys C.S. Heath and Joseph M. Revesz are prosecuting.
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Eleven People Indicted in Monroe County Drug ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Scranton has charged ten men and one woman with conspiring to distribute cocaine, cocaine base (crack) and heroin in Monroe County.
According to United States Attorney Peter Smith, the indictment alleges that from at least May 2015 to July of this year, Joseph Morales, age 24, Humberto Morales-Delgado, age 52, both of Pocono Summit, PA, Matthew Morales, Age 22, Mount Pocono, PA, Myles Davis, age 27, Kyme Ashby, age 26, Patrick Hynes, age 18, Sherquille Ernest, age 21, all of Tobyhanna, PA,
Steven Silva-Lugo, age 28, Henryville, PA, Andrew Perez, age 27, Bronx, NY, Nick Monteforte, age 29, Monroe County, PA, and Jayce Bradley, age 54, Shawnee on Delaware, PA conspired to distribute more than half a kilogram of cocaine, more than 280 grams of cocaine base and more than 100 grams of heroin to consumers in multiple locations, in and around Monroe County.
Eight of the defendants, Joseph Morales, Matthew Morales, Morales-Delgado, Silva-Lugo, Ernest, Ashby, Bradley and Hynes were arrested on July 22, 2015 and are in custody. Three remain at large at this time. Anyone with information regarding the whereabouts of Myles Davis, Andrew Perez or Nick Monteforte is asked to contact the Drug Enforcement Administration at (570) 496-1020.
The investigation was the result of a long term cooperative effort of the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the United States Attorney’s Office. Prosecution is assigned to Assistant United States Attorney Peter Hobart.
The defendants face a minimum term of 10 years in prison and a maximum of life imprisonment and fines of up to one million dollars.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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East St. Louis Woman Sentenced for Firearm Violation and Conspiracy to Obstruct JusticeRead the Press Release
An East St. Louis woman, convicted of Transfer of a Firearm to a Felon and Conspiracy to Obstruct Justice, was sentenced to 12 months and 1 day in federal prison on July 27, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Loletha Eckford, 34, of East St. Louis, IL, had previously pled guilty to those offenses on April 2, 2015. Following release from imprisonment, Eckford will serve a 1 year term of supervised release. Eckford was also ordered to pay a $400 fine and a $200 special assessment.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service, Criminal Investigations, Illinois State Police, and East St. Louis, Illinois, Police Department. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
Durant Woman Pleads Guilty to Theft by Officer or Employee of Gaming Establishment on Indian LandsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CRYSTAL DEANN AIRINGTON, age 40, of Durant, Oklahoma, pled guilty to THEFT BY OFFICERS OR EMPLOYEES OF GAMING ESTABLISHMENT ON INDIAN LANDS, in violation of Title 18, United States Code, Sections 1168(b) and 2, punishable by not more than 20 years imprisonment, up to a $1,000,000.00 fine or both.
The Indictment alleged that from in or about January, 2012 to on or about December 15, 2012, in the Eastern District of Oklahoma, CRYSTAL DEANN AIRINGTON, defendant herein, while an employee of the Choctaw Nation Casino and Resort, did embezzle, abstract, purloin, willfully misapply, and take and carry away in excess of $1,000.00 of moneys belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation in Indian Country, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charges arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain on bond pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
Desai Sentenced for Distribution of "Ice" and Possession of Multiple FirearmsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Nimesh Vijay Desai, age 33, of Columbus, Georgia was sentenced today by the Honorable Clay D. Land, Chief United States District Judge in Columbus, Georgia. Mr. Desai was sentenced to serve 130 months in prison for distribution of methamphetamine and possession of a firearm during a drug trafficking crime.
On April 13, 2015, Mr. Desai pled guilty to distribution of methamphetamine and possession of a firearm during a drug trafficking crime. He made several sales of methamphetamine, also known as “ice.”, to an undercover agent. A search warrant of Mr. Desai’s residence in June 2012 revealed 15 weapons of various makes and models. He attempted to flee but was captured by the U.S. Marshal’s Service in East Point, Georgia. At that time, he was in possession of methamphetamine and a Colt .45 caliber handgun. Mr. Desai in total is responsible for 26.2 grams of “ice” which he intended to distribute.
“I commend the cooperation of the federal and local authorities in bringing this investigation. Their collaborative efforts took at least one drug dealer and his guns off the streets,” said U.S. Attorney Michael Moore.
The case was investigated by the Muscogee County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Melvin E. Hyde prosecuted the case for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Defendant Sentenced for Sexual Abuse on Lake Powell in 2002Read the Press Release
PHOENIX – Yesterday, Blain Arno Pannell, 44, of Taylorsville, Utah, was sentenced by U.S. District Judge Susan R. Bolton to 30 months’ imprisonment and required to register as a sex offender. Pannell previously pleaded guilty to one count of sexual abuse.
“Today’s outcome is a testament to the dedicated work of the National Park Service in diligently investigating a pattern of misconduct that had occurred many years earlier,” said U.S. Attorney John S. Leonardo. “The conviction and sentence should help bring some measure of justice to the victims.”
The evidence presented at sentencing indicated that, beginning around 2002, the defendant engaged in a sexual relationship with his then 16-year-old niece. On one occasion in June 2002, the defendant took his niece and a 17-year-old nephew out on his boat on Lake Powell, provided them with alcohol and marijuana, and then engaged in sexual contact with both of them. The matter was not reported to law enforcement until 2010.
The investigation in this case was conducted by the National Park Service, Investigative Services Branch. The prosecution was handled by Assistant United States Attorneys Patrick Schneider and Dimitra Sampson.
CASE NUMBER: CR-14-08158-SRB
RELEASE NUMBER: 2015-057_Pannell
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Columbus Woman Sentenced to Serve 65 Months for Filing over 180 False Tax ReturnsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Danielle Wallace, age 36, of Columbus, Georgia, was sentenced July 28, 2015 to 65 months imprisonment for wire fraud, aggravated identity theft and filing false income tax returns before the Honorable Clay D. Land, Chief U.S. District Court Judge, in Columbus, Georgia. She was also ordered to pay $100,186 in restitution.
Ms. Wallace pled guilty to the charges on May 5, 2015. As a part of her plea agreement, Ms. Wallace admitted she filed over 180 fraudulent tax returns between January 1, 2014 and March 24, 2014. During this time, Ms. Wallace was employed by Blue Cross/Blue Shield fielding telephone calls from customers. She would obtain personal information from the customers during the calls and then file false income tax returns through “Simple Cash 1,” a tax preparation business she owned and operated in Columbus for the sole purpose of filing false claims. The attempted and actual loss, or the amount of funds which was obtained by fraud, is approximately $494,000.
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 is 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 investigations and prosecutions 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.
“In the Middle District of Georgia, we have made fighting financial fraud a priority. These cases require intensive and detailed investigations, and often involve a number of defendants. My advice to the fraudsters is simple – stop breaking the law. If you don’t, we are going to catch you and make every effort to give you a unique personal identification number – one that is found only on a federal prison inmate’s uniform,” said U.S. Attorney Michael Moore.
For more information on the task force, please visit www.StopFraud.gov.
The case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service and the Harris County Sheriff’s Office. Assistant United States Attorneys Melvin E. Hyde, Jr. and Chuck Byrd prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Colombian National Charged in North Dakota with Operating a Continuing Criminal Enterprise from Canadian PrisonRead the Press Release
Acting U.S. Attorney Christopher C. Myers for the District of North Dakota announced today that on July 17, 2015, Daniel Vivas Ceron, 34, of Colombia, North Dakota, was taken into custody in Panama City, Panama, in connection with an indictment from the District of North Dakota charging him with conspiracy to distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death, conspiracy to import controlled substances and controlled substance analogues in to the United States resulting in serious bodily injury and death, aiding and abetting the distribution of a controlled substance resulting in death, money laundering conspiracy and continuing criminal enterprise.
Ceron appeared in a Panamanian court on July 20, 2015, and is awaiting extradition to the United States.
The arrest comes as part of “Operation Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs and was significantly aided by the national and international coordination led by the Special Operations Division (S.O.D.), which is a multi-agency near Washington D.C., as part of “Operation Deadly Merchant.” The investigation started in North Dakota on Jan. 3, 2015, with the overdose death of Bailey Henke, 18, of Grand Forks, North Dakota.
The indictment alleges Ceron operated a continuing criminal enterprise while imprisoned in Canada that moved fentanyl and other similar substances from Canada and China into the United States and that those drugs resulted in serious bodily injury and death. If convicted, Ceron faces a maximum sentence of life in prison.
“The cooperation of law enforcement in North Dakota, Oregon, Florida and Canada has been exemplary in this case – these agencies worked tirelessly as one unit to target, identify and dismantle this organization in an effort to prevent additional deaths,” said Acting U.S. Attorney Chris Myers. “The fact that in just a few months this law enforcement team has been able to take this investigation from Grand Forks, across the United States and into Canada is a tribute to the dedication of these agents to public safety in both the United States and Canada.”
“The illegal distribution of fentanyl, as the number of drug overdoses tied to this investigation show, has wreaked havoc across the country,” said Acting U.S. Attorney Billy J. Williams for the District of Oregon. “National problems such as this require a coordinated national response – and that is exactly what our offices have done to hold the perpetrators of this destruction accountable.”
Additional defendants charged in federal court as part of this investigation include:
District of North Dakota
- Jameson Robert Sele, 20, Grand Forks, North Dakota, pleaded guilty to conspiracy to distribute controlled substances and was sentenced on July 27, 2015, to 36 months imprisonment.
- Ryan Jon Jensen, 20, Grand Forks, North Dakota, pleaded guilty on Feb. 27, 2015, to conspiracy to distribute controlled substances resulting in serious bodily injury and death; two counts of distribution of a controlled substance resulting in death and distribution of a controlled substance resulting in serious bodily injury and money laundering conspiracy. Currently awaiting sentencing.
- David Todd Noye Jr., 18, Grand Forks, North Dakota, pleaded guilty on May 4, 2015, to conspiracy to distribute controlled substances. Currently awaiting sentencing.
- Joshua Tyler Fulp, 20, Grand Forks, North Dakota, pleaded guilty on June, 23, 2015 to conspiracy to distribute controlled substances resulting in serious bodily injury and death and money laundering conspiracy. Currently awaiting sentencing.
- Kain Daniel Schwandt, 19, Grand Forks, North Dakota pleaded guilty on July 24, 2015, to conspiracy to distribute controlled substances. Currently awaiting sentencing.
- Brandon Corde Hubbard, 40, Portland, Oregon was indicted for conspiracy to distribute controlled substances resulting in serious bodily injury and death, distribution of a controlled substance resulting in death and money laundering conspiracy. Trial is currently set for Sept. 15, 2015.
District of Oregon
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Steven Fairbanks Locke with conspiracy to distribute and possess with intent to distribute a controlled substance.Trial set for Sept. 15, 2015.
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Channing Lacey with conspiracy to distribute a controlled substance resulting in serious bodily injury, distribution of a controlled substance resulting in death and possession of a controlled substance with intent to distribute.Trial set for Sept. 22, 2015.
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Carissa Marie Laprall with three counts of distribution of a controlled substance resulting in serious bodily injury and possession of a controlled substance with the intent to distribute.Trial set for Sept. 22, 2015.
This case is being investigated by Homeland Security Investigations, Drug Enforcement Administration, Grand Forks Narcotics Task Force, Royal Canadian Mounted Police, Portland Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force, Oregon State Police, the Grand Forks Police Department and Multnomah County Sheriff's Office.
Acting U.S. Attorney Myers and Assistant U.S. Attorney Scott Schneider are prosecuting the cases in North Dakota; Assistant U.S. Attorney Scott Kerin is prosecuting the cases in the District of Oregon and will be assisting as a Special Assistant U.S Attorney in North Dakota as the investigation moves forward.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
- Jameson Robert Sele, 20, Grand Forks, North Dakota, pleaded guilty to conspiracy to distribute controlled substances and was sentenced on July 27, 2015, to 36 months imprisonment.
Colombian National Charged in ND with Operating a Continuing Criminal Enterprise from Canadian PrisonRead the Press Release
FARGO - Acting United States Attorney Christopher C. Myers announced today that on July 17, 2015, Daniel Vivas Ceron, 34, of Colombia, was taken into custody in Panama City, Panama in connection with an indictment from the District of North Dakota charging him with: (1) Conspiracy to Distribute Controlled Substances and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death; (2) Conspiracy to Import Controlled Substances and Controlled Substance Analogues in to the United States Resulting in Serious Bodily Injury and Death; (3) Aiding and Abetting the Distribution of a Controlled Substance Resulting in Death (4) Money Laundering Conspiracy and (5) Continuing Criminal Enterprise.
Vivas Ceron appeared in a Panamanian court on July 20th, 2015 and is awaiting extradition to the United States.
The arrest comes as part of “Operation Denial”, an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs and was significantly aided by the national and international coordination lead by the multi-agency Special Operations Division (S.O.D.) near Washington D.C. as part of “Operation Deadly Merchant.” The investigation started in North Dakota on January 3, 2015 with the overdose death in Grand Forks of 18-year-old Bailey Henke.
The indictment alleges Vivas Ceron operated a Continuing Criminal Enterprise while imprisoned in Canada that moved fentanyl and other similar substances from Canada and China into the United States and those drugs resulted in serious bodily injury and death. If convicted, Vivas Ceron faces a maximum of sentence of life in prison.
Acting U.S. Attorney Chris Myers stated: “The cooperation of law enforcement in North Dakota, Oregon, Florida and Canada has been exemplary in this case – these agencies worked tirelessly as one unit to target, identify and dismantle this organization in an effort to prevent additional deaths. The fact that in just a few months this law enforcement team has been able to take this investigation from Grand Forks across the United States and into Canada is a tribute to the dedication of these agents to public safety in both the United States and Canada.”
Acting U.S. Attorney Billy J. Williams, District of Oregon, added: “The illegal distribution of fentanyl, as the number of drug overdoses tied to this investigation show, has wreaked havoc across the country. National problems such as this require a coordinated national response – and that is exactly what our offices have done to hold the perpetrators of this destruction accountable.”
Additional defendants charged in Federal court in this investigation include: District of North Dakota
1. Jameson Robert Sele, 20, Grand Forks, North Dakota – Plead guilty to Conspiracy to Distribute Controlled Substances and was sentenced on 7/27/15 to 36 months imprisonment.
2. Ryan Jon Jensen, 20, Grand Forks, North Dakota – Plead guilty on 2/27/15 to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; Two counts of Distribution of a Controlled Substance Resulting in Death; Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Money Laundering Conspiracy. Currently awaiting sentencing.
3. David Todd Noye Jr., 18, Grand Forks, North Dakota – Plead guilty on 5/4/15 to Conspiracy to Distribute Controlled Substances. Currently awaiting sentencing.
4. Joshua Tyler Fulp, 20, Grand Forks, North Dakota – Plead guilty on 6/23/15 to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death and Money Laundering Conspiracy. Currently awaiting sentencing.
5. Kain Daniel Schwandt, 19, Grand Forks, North Dakota - Plead guilty on 7/24/15 to Conspiracy to Distribute Controlled Substances. Currently awaiting sentencing.
6. Brandon Corde Hubbard, 40, Portland, Oregon - Indicted for Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; Distribution of a Controlled Substance Resulting in Death and Money Laundering Conspiracy. Trial is currently set for September 15, 2015.District of Oregon
1. Steven Fairbanks Locke – Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance. Trial set for September 15, 2015.
2. Channing Lacey – Conspiracy to Distribute a Controlled Substance Resulting in Serious Bodily Injury; Distribution of a Controlled Substance Resulting in Death; Possession of a Controlled Substance with Intent to Distribute. Trial set for September 22, 2015.
3. Carissa Marie Laprall - Three counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Possession of a Controlled Substance with the Intent to Distribute. Trial set for September 22, 2015.This case is being investigated by Homeland Security Investigations, Drug Enforcement Administration, United States Postal Inspection Service, Grand Forks Narcotics Task Force, Royal Canadian Mounted Police, Portland Oregon Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force, Oregon State Police, and the Grand Forks Police Department.
Acting United States Attorney Christopher C. Myers and AUSA Scott Schneider are prosecuting the cases in North Dakota. AUSA Scott Kerin is prosecuting the cases in the District of Oregon and will be assisting as a Special Assistant U.S Attorney (SAUSA) in North Dakota as the investigation moves forward.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Cockeysville Youth Group Volunteer Pleads Guilty to Distribution of Child PornographyRead the Press Release
Baltimore, Maryland –Gregory Wayne Gibson, age 63, of Cockeysville, Maryland pleaded guilty today to distribution of child pornography. For the past three to four years, Gibson was a volunteer youth group leader at a church in Baltimore County, working with children ages nine through eighteen. Gibson also assisted with childcare at his wife’s unlicensed home daycare, which included infants.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Gibson’s plea agreement, he has been involved in the collection and distribution of child pornography. In July 2014, a detective from the Baltimore County Police Department (BCPD) downloaded a file containing child pornography that Gibson had made available using a file sharing program. The video file depicted a prepubescent female engaged in sexually explicit conduct with an adult male. On February 24, 2015, a BCPD detective again downloaded a video file made available by Gibson using a file sharing program, which depicted a minor female engaging in sexually explicit conduct. On April 16, 2015, a search warrant was executed at Gibson’s residence and at his employer’s location in Baltimore City. During the searches, investigator’s seized Gibson’s laptops and external hard drives, as well as two flash drives, all of which contained images and/or videos of child pornography.
Gibson voluntarily spoke to investigators admitted to using file sharing software to download child pornography. Child pornography was found during a forensic examination of Gibson’s laptops, external hard drives and flash drives, including the videos downloaded by the BCPD detectives during the investigation. The electronic media contained in excess of 260,000 images and videos. A preliminary review of those files revealed that the majority of these files depicted minors engaging in sexually explicit conduct. There were also a significant number of images of child erotica and of images and videos depicting infants and toddlers engaging in sex acts with adults, including images and videos depicting bondage and anal penetration.
The forensic analysis of the digital evidence seized from Gibson’s residence and place of employment revealed that Gibson was acquiring images of child pornography as recently as five days before the state search warrant was executed.
As part of his plea agreement, Gibson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Gibson faces a minimum mandatory sentence of five years in prison and a maximum of 20 in prison followed by up to lifetime of supervised release for distribution of child pornography. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 26, 2015 at 3:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, the Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Arkansas man sentenced to 15 years in federal prison for traveling to Colorado with the intent to engage in illicit sexual conduct with childrenRead the Press Release
DENVER – Donnie Waldo, Jr., age 48, of Dover, Arkansas, was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 180 months (15 years) in federal prison for traveling with intent to engage in illicit sexual conduct with children, U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge David Thompson announced. Following his prison term, Judge Moore also ordered Waldo to serve 10 years on supervised release. The defendant, who appeared at the hearing in custody, was remanded at its conclusion.
Waldo was charged by Criminal Complaint on November 10, 2014. He was indicted by a federal grand jury in Denver on November 17, 2014. The defendant pled guilty on March 20, 2015.
According to court documents, starting in October of 2014, an undercover HSI agent initiated an investigation targeting individuals using a specific website to sexually exploit children. The free website allows users to create profiles and post pornographic videos and pictures based on their sexual interests. The website included groups called “incest,” “jailbait” and “teen”. Members can post advertisements in the “classified” section seeking to meet members with the same sexual interests, such as incest and rape.
During the course of the investigation the undercover agent came across an advertisement on the website, which stated: “I am a 47 year old man I am 6’3” tall weight 220 lbs at the present time I am married but me and my wife cant have children together I am interested in finding a woman to have an incest relationship with I want to start an incest family with a nice woman who is seeking the same thing I want a woman who is interested in me breeding her if this is you then lets talk” (sic).
On October 2, 2014, an undercover HSI agent working in an online undercover capacity in Greeley as a single mother with two young daughters responded to the advertisement. The undercover agent in the single mother persona and the target conducted numerous chats online – mostly involving the prospect of him having a sexual relationship with the undercover agent’s persona and her two daughters, ages 10 and 14. During one of the chats, the target allegedly stated that he wanted a “very open relationship . . . openly having sex with you (the single mother persona) and both daughters” and further discussed that he wanted to impregnate the single mother’s persona and both daughters.
Further investigation revealed that the ad was posted by Arkansas resident Donnie Waldo. Waldo made arrangements with the single mother persona to travel to Denver to meet and engage in sexual relations with the mother and her two daughters. On November 10, 2014, Waldo boarded a flight from Little Rock, Arkansas to Atlanta. In Atlanta, he boarded a flight to Denver, where he was arrested by HSI agents.
“Defendant’s chilling conduct – he travelled to Colorado with the hope and intention of sexually abusing two young children – earned him every minute of the 15 year sentence imposed by the Court,” said U.S. Attorney John Walsh.
“HSI special agents aggressively pursue sexual predators who target children, which preemptively rescues untold future victims,” said David A. Thompson, special agent in charge of HSI Denver. “This significant prison sentence awarded to Donnie Waldo will undoubtedly save some children the horror of being sexually victimized.”
This case was investigated by HSI. The defendant was prosecuted by Assistant U.S. Attorney Alecia L. Riewerts.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Abilene Men Face up to 20 Years in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
ABILENE, Texas — In unrelated cases, two Abilene, Texas, residents, David Scott Fikani, 61, and Michael Cleo Ivy, 36, each appeared today before U.S. Magistrate Judge E. Scott Frost and pleaded guilty to federal child pornography offenses involving prepubescent minors, announced John Parker, U.S. Attorney for the Northern District of Texas.
Fikani, who remains on bond, pleaded guilty to a one-count indictment charging possession of prepubescent child pornography. According to plea documents filed in the case, Fikani used the computer at his residence to search the Internet for images and videos depicting minors engaging in sexually explicit conduct. In the course of these searches, Fikani located, downloaded, and viewed numerous images and videos constituting child pornography. Some of those images involved prepubescent minors.
Ivy, who is also on bond, pleaded guilty to the same offense. He was indicted in April 2015 on one count of receipt of child pornography and one count of possession of prepubescent child pornography. He, too, used the computer at his residence to search for images and videos of child pornography, and in the course of those searches, he also located, downloaded, and viewed numerous images and videos constituting child pornography. Some of those images involved prepubescent minors.
Each defendant faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Sentencing dates will be set at a later date.
The cases were brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department investigated both cases. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecutions.
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27 July 2015
Wetzel County man sentenced for oxycodone traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Trevor Vossen, 23, of New Martinsville, WV, was sentenced to 24 months in prison in federal court today for oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Throughout 2014 and early 2015, Vossen conspired with other individuals to possess and distribute oxycodone in Wetzel and Marshall Counties in West Virginia. He pled guilty in May 2015 to one count of “Drug Conspiracy - Oxycodone.”
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Wellington Man Sentenced to 8+Years on Child Pornography ChargesRead the Press Release
WICHITA, KAN. – A Wellington man was sentenced Monday to 100 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said. In addition, he will serve 10 years on supervised release after his sentence is completed.
Steven J. Meisel, 48, Wellington, Kan., was convicted in a jury trial on one count of distributing child pornography and one count of possessing child pornography. During trial, prosecutors presented evidence that on May 9, 2014, a Wichita police detective downloaded child pornography from Meisel’s computer over the ARES P2P computer network. The files included images of prepubescent children engaged in sex acts. Investigators followed an electronic trail to Meisel’s computer at his residence in Wellington.
Grissom commended the Wichita Police Department, the Sedgwick County Sheriff’s Office, the Exploited and Missing Child Unit, the Internet Crimes Against Children Task Force, the Wellington Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Two convicted of heroin traffickingRead the Press Release
ELKINS, WEST VIRGINIA – John Daniel Barnett, 39, and Kaylei Oressa Wilson, 26, both of Petersburg, West Virginia, were convicted today of heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Barnett and Wilson, along with other individuals, conspired to possess and sell heroin in Grant County, West Virginia throughout 2014 and 2015.
The defendants each pled guilty today to one count of “Distribution of Heroin.” Barnett and Wilson each face up to 20 years in prison. 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 Michael Stein prosecuted the case on behalf of the government. The West Virginia State Police and the Potomac Highlands Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge John S. Kaull presided.
Three Defendants Pled Guilty in Extensive Identity Theft Tax Refund Fraud SchemeRead the Press Release
Three defendants pled guilty for their participation in an extensive stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Brandi Mary Janice Stroman, 30, of Oakland Park, and Dezman Dunbar Zama, 34, of Fort Lauderdale, each pled guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, and one count of aggravated identity theft, in violation of Title l8, United States Code, Sections 1343, 1344, 1349 and 1028A. Stroman also pled guilty to one count of conspiracy to commit mail fraud, in violation of Title l8, United States Code, Sections 1341 and 1349. Jerrod Dashon Bosket, 26, of Orlando, pled guilty to one count of unauthorized use of an access device and one count of aggravated identity theft, in violation of Title 18, Sections 1029(a)(2) and 1028A.
According to court documents, from March 2012 through August 2012, Stroman obtained the bank account information of Zama, Jerrod Bosket, and co-defendant Cornelius Craig Bosket, 32, of Fort Lauderdale. Stroman then provided the bank account information to another individual who filed false tax returns using the personally identifiable information (PII) of patients of a medical services provider. The fraudulent refunds from these tax returns were deposited into one of the bank accounts controlled by Zama, Jerrod Bosket, Cornelius Bosket, or others. After the money was deposited into the account, Stroman contacted the co-defendants and directed them to withdraw the funds. During the course of the conspiracy, at least 27 false returns were filed requesting $105,313 in fraudulent refunds. Each one of the 27 false returns listed one of the defendant’s bank account numbers.
Court documents also state that a member of the conspiracy obtained the names, social security numbers, and bank account numbers of three other individuals. A member of the conspiracy transferred or attempted to transfer $62,000, $92,716, and $135,482.46, respectively, from these three individuals’ bank accounts into a bank account controlled by Stroman or Zama. Stroman and Zama then withdrew or attempted to withdraw the transferred funds. Four fraudulent tax refunds in the name of incarcerated individuals were also deposited into Stroman’s bank account.
Defendants Zama and Jerrod Bosket are scheduled to be sentenced on September 23, 2015, and defendant Stroman is scheduled to be sentenced on October 7, 2015, all before United States District Judge William J. Zloch. All of the defendants face a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge. Stroman and Zama also face a maximum of twenty years in prison for the conspiracy to commit wire fraud charge and a maximum of thirty years in prison for the conspiracy to commit bank fraud charge. Stroman also faces a maximum of twenty years in prison for the conspiracy to commit mail fraud charge. Jerrod Bosket faces a maximum of ten years in prison for the access device charge.
Trial is scheduled to begin on July 28, 2015 for co-defendant Cornelius Craig Bosket.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
Telemarketer Sent to Federal Prison in Timeshare Resale FraudRead the Press Release
HOUSTON – The lead defendant in connection with a telemarketing fraud and money laundering scheme spanning nearly five years has been ordered to federal prison following his convictions of conspiracies to commit wire/mail/telemarketing fraud, announced U.S. Attorney Kenneth Magidson. James Assi Jariv, 64, of Las Vegas, Nevada, pleaded guilty May 18, 2015.
Today, U.S. District Judge Lynn H. Hughes ordered Jariv to serve a total of 120 months in federal prison to be immediately followed by three years of supervised release.
Jariv’s son Alexander, 28, his wife Jiwon, 36, his ex-wife Varda, 74, all of Las Vegas, and four others - Ronald Frank Muise, 53, his son Michael Derek Muise, 30, and Thresa Lloyd, 45, all also of Las Vegas, and Leon Avedikian, 46, of Los Angeles, California – have also been convicted for their roles in the scheme. With the exception of Varda Jariv, who was ordered to serve a five-year-term of probation and ordered to pay $439,911 in restitution, all are pending sentencing at later dates.
As a result of all the guilty pleas, the U.S. has recovered more than $2,250,000 in restitution for the nearly 1000 victims, many of whom are more than 55 years of age. Money judgments in both the civil forfeiture action and the criminal cases have been obtained to assist the government in recovering the balance of the nearly $5 million in restitution owed to the victims.
Between December 2007 and Feb. 24, 2012, the defendants victimized approximately 1000 people living in Canada and throughout the United States, including the Southern District of Texas.
The Jarivs and the others used a number of different named companies to conduct their telemarketing timeshare resale scheme in Houston, Las Vegas, Chicago and Los Angeles, which targeted timeshare owners throughout the United States and Canada. The timeshare owners were solicited to pay advance fees in exchange for the promise that The Jariv Companies had willing buyers for the timeshare properties or points. However, The Jariv Companies did not have buyers for the timeshare owners’ interests and did not market or sell the property.
The Jariv companies were registered in various states, including Texas, Nevada, California, Illinois and Washington and conducted business at multiple addresses in Houston, Las Vegas, Los Angeles, Chicago and Seattle.
The defendants used mailing addresses or “virtual office suites” in Las Vegas, Houston, Chicago and Seattle for receiving monies from timeshare owners via U.S. Mail or commercial interstate carriers like Fed Ex, all the while maintaining call center offices in Las Vegas, Houston, Chicago and the greater Los Angeles-area from which the defendants, using telephones and email, contacted and communicated with timeshare owners in a scheme to defraud the timeshare owners of money.
The defendants and their employees falsely represented that they had buyers for the timeshare owners interests (either timeshare weeks or points) and solicited fees, ranging from hundreds of dollars to several thousand dollars from each timeshare owner. The defendants falsely represented that the fees were fully refundable at closing and were used to secure the owners’ place in an acquisition involving corporate buyers, as well as to pay for legal expenses such as title searches, estoppel letters and closing costs.
However, closings were not scheduled, purported sales did not occur and no payments were made to timeshare owners for the sale of their property, nor have there been payments by corporations (or other buyers) to The Jariv companies for the purchase of timeshare properties.
The defendants and employees of the Jariv companies did not devote their resources to marketing the timeshare owners’ properties and simply pocketed the advanced fees paid by the timeshare owners with a sizeable percentage of the money used to pay telemarketers. Jariv and his family members kept the balance of advance fees to be deposited into bank accounts controlled by them and frequently transferred it to personal bank accounts or other unrelated corporate bank accounts.
Between Feb. 1, 2011, and Jan. 31, 2012, the defendants deposited into eight bank accounts approximately $6,925,137.04 in fraudulently-obtained timeshare owner funds. Some victims reversed the charges or withdrawals, leaving approximately $5,945,433.04 in victim funds in possession of, and subsequently transferred into, other accounts controlled by the defendants. The funds in the eight victim deposit accounts were all traceable to payments received from victims. In the earlier years of the conspiracy, agents identified another nearly $6 million in victim funds that were deposited in accounts controlled by the Jariv family.
Originally on bond, James Jariv was previously taken into custody following an arrest in January 2014 for an unrelated fraud scheme in Nevada. He will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The convictions are the result of an investigation conducted by the Houston Division of U.S. Secret Service (USSS) and Internal Revenue Service – Criminal Investigation with assistance by Las Vegas USSS, FBI and San Francisco Environmental Protection Agency. Assistant U.S. Attorneys Martha Minnis and Katherine Haden are prosecuting the case.
Tahlequah Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DEREK ALLEN CLELL HORNEY, age 30, of Tahlequah, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A)(viii), punishable by not less than 10 years imprisonment, up to a $10,000,000.00 fine or both.
The Indictment alleged that on or about November 14, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute fifty (50) grams or more of Methamphetamine (actual), a Schedule II controlled substance.
The charges arose from an investigation by the Tahlequah Police Department and the Drug Enforcement Administration.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
Stockton Man Sentenced to One and a Half Years in Prison for Trafficking in Counterfeit GoodsRead the Press Release
SACRAMENTO, Calif. — United States District Judge William B. Shubb sentenced Joe L. Regalado, 41, of Stockton, to one and one half years in prison for trafficking in counterfeit goods, United States Attorney Benjamin B. Wagner announced.
According to court documents, over a nearly two-year period, Regalado trafficked in goods bearing counterfeit trademarked insignia. When he was arrested in December 2011, Regalado was selling counterfeit college sports jerseys, Major League Baseball jerseys and hats, National Basketball Association jerseys, National Football League jerseys and caps, National Hockey League jerseys, and counterfeit clothing bearing trademarks from Chanel, Prada, Juicy Couture, Louis Vuitton, Christian Audigier, Polo, True Religion, Coach, Burberry, Gucci, and Nike. As part of his sentence, Regalado was ordered to pay over $111,000 in restitution to sports teams whose logos were on the goods that he was caught selling, and to forfeit ownership of two cars and a garage full of counterfeit goods that were recovered by the FBI when they searched his house.
This case was the product of an investigation by the Sacramento High Tech Crimes Task Force, which includes representatives from state and federal law enforcement agencies including the Sacramento County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Matthew Morris prosecuted the case.
Second Man Linked to Medicare Fraud Scheme Pleads Guilty to Federal Money Laundering and Tax OffensesRead the Press Release
LOS ANGELES – A Glendale man pleaded guilty today to federal money laundering and tax charges related to a scheme in which he helped launder $1.1 million generated by a health care fraud scheme.
Khachatour Hakobyan, 47, pleaded guilty today to conspiracy to commit money laundering and filing a false tax return.
A second defendant in this case – Aram Aramyan, 59, also of Glendale – pleaded guilty on July 13 to the same two felony offenses.
In plea agreements filed in United States District Court, Hakobyan and Aramyan admitted that they deposited over $1.1 million in proceeds derived from a health care fraud scheme into bank accounts in the names of bogus corporations they established “primarily to launder money.” Once the proceeds were deposited, Hakobyan and Aramyan wrote checks from these corporations to themselves and their associates. Hakobyan and Aramyan further admitted that they cashed some of the checks – and directed their associates to cash others – and returned the cash to the medical entities, typically after deducting a 10 percent commission. In some cases, they deposited the checks into their personal accounts and used the money to pay personal expenses, such as mortgage payments, rent and home remodeling costs.
As part of their guilty pleas, Hakobyan and Aramyan each admitted that they failed to report all of their income from the corporations in their 2009 tax returns and have agreed to pay, respectively, $606,681 and $353,669 in back taxes for tax years 2007 through 2011.
Hakobyan and Aramyan pleaded guilty before United States District Judge Margaret M. Morrow.
As a result of their guilty pleas, Hakobyan and Aramyan each face a statutory maximum sentence of 23 years in federal prison. Judge Morrow is scheduled to sentence Hakobyan on November 16, and Aramyan on November 2.
There are three remaining defendants in this case: Edgar Hakobyan, Karen Sarkissian and L’Tanya Smith (see: http://www.justice.gov/usao-cdca/pr/three-arrested-after-being-named-new-indictment-alleges-money-laundering-health-care). They are currently scheduled to go on trial before Judge Morrow on February 2, 2016.
The investigation in this case was conducted by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and IRS - Criminal Investigation.
Richland County Woman Sentenced in Federal Court on Methamphetamine ChargesRead the Press Release
A Richland County woman was sentenced to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
On July 23, 2015, Jacque Lee Brown, 44, of Olney, Illinois, was sentenced to 87 months in federal prison, to be followed by two years of supervised release following her prison term, and fined $300. Brown had previously pleaded guilty, admitting that from April 8, 2009, to September 7, 2012, in Richland County, Brown knowingly and intentionally possessed Pseudoephedrine pills, knowing and having reasonable cause to believe that the pills would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Registered Sex Offender Guilty of Producing Child Pornography in Jefferson CountyRead the Press Release
BEAUMONT, Texas – A 45-year-old Galveston, Texas man has pleaded guilty to federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jose Stephen Gracia pleaded guilty to production of child pornography today before U.S. District Judge Marcia Crone.
According to information presented in court, on Apr. 2, 2015, federal agents executed a search warrant at Gracia’s residence in Galveston based on information that child pornography was being distributed from that location. During the search, investigators located a digital memory card in a locked safe that contained videos of Gracia and his victims. In these videos, Gracia, a registered sex offender, was engaged in sexual activity with the children. Further investigation revealed the videos were originally produced in Jefferson County, Texas. Gracia was indicted by a federal grand jury on May 7, 2015.
Gracia faces a mandatory term of life in federal prison. A sentencing date has not been set.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations (HSI), Jefferson County District Attorney’s Office, Jefferson County Sheriff’s Office and Galveston Police Department and prosecuted by Assistant U.S. Attorney Lesley Bartow.
Reentry Task Force for Southwest Alabama to Be AnnouncedRead the Press Release
Senator Vivian Davis Figures and United States Attorney Kenyen Brown will hold a media event to announce the creation of the Project HOPE (Helping Offenders Pursue Excellence) Reentry Task Force for Southwest Alabama. Thirty-seven area leaders and stakeholders who have agreed to serve are being asked to develop a strategic plan that will address reentry issues and needs of ex-offenders who are transitioning back to area communities.
U.S. Attorney Kenyen Brown stated, "I’m excited that so many notable leaders from our regional community have answered the clarion call for change in Southern Alabama and the entire State of Alabama. I applaud their decision to lend us their experience and talents in order to come up with what we hope will be lasting solutions to the State’s criminal justice problems."
Senator Vivian Figures, the Chair of the Project HOPE Reentry Task Force, expressed, "There are growing concerns about the struggles inmates may encounter when released and the fears we all have about the endless cycles of arrest and re-incarceration that many experience." "It is in our best interest as their families, friends and neighbors that we forge new and hopeful pathways for those ready to chart new lives," said Senator Figures.
The formation of the Task Force is a collaborative effort encouraged by the Alabama Board of Pardons and Paroles and spearheaded locally by U. S. Attorney, Kenyen R. Brown, the Project HOPE Reentry Council and the Mobile Area Interfaith Conference. The planning process will create a network of partners committed to goals and implementation that will transform the reentry process.
The citizens of Southwest Alabama are increasingly aware of pressing issues that need to be addressed. The Alabama justice system is struggling with overcrowding and a high rate of recidivism. The Mobile County Metro Jail is the largest incarceration facility in Southwest Alabama and is straining to perform its duties as an arm of the local justice system. There is growing consensus in law enforcement, justice and elected officials that recidivism rates could be reduced by implementing basic strategies and services that help ex-offenders avoid being re-arrested and returned to jail. Building on existing community resources and with coordinated support, many ex-offenders would be able to make choices
that could lead to renewed hope and increased opportunities as law-abiding and self-sufficient citizens, thereby reducing recidivism for those deserving of another chance.
This event is intended for all media outlets that provide news and information for public awareness and for rallying public support for reentry initiatives. Elected officials are encouraged to attend and support the development of a reentry strategic plan.
"We are beginning to better understand the difficulties faced by anyone released from a correctional facility. By responding effectively, we can create a reentry process that also provides a safer community for all citizens," concluded Figures.
Pontiac Man, Robert Thomas Carlson, Sentenced for Possession of Child PornographyRead the Press Release
MARQUETTE, MICHIGAN — Robert Thomas Carlson, 40, of Pontiac, Michigan was sentenced to 41 months in federal prison for possession of child pornography, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge R. Allan Edgar ordered Carlson to serve ten years of supervised release following the completion of his prison term and to register as a sexual offender.
On February 12, 2015, Carlson pleaded guilty to a federal indictment charging him with possession of child pornography. The investigation into Carlson’s activities began when agents from Immigration and Customs Enforcement, Homeland Security Investigations determined Carlson had paid for a subscription to a child pornography website. Agents eventually located Carlson, who had moved from lower Michigan to the Upper Peninsula to begin studies at Northern Michigan University. Agents retrieved a laptop Carlson had used while he was a student and discovered images and a video containing child pornography. Agents interviewed Carlson, and he surrendered another laptop computer, forensic examination of which revealed that Carlson was continuing to view and collect child pornography.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
Immigration and Customs Enforcement, Homeland Security Investigations, the Federal Bureau of Investigation, the Michigan State Police, and Northern Michigan University Public Safety investigated the case. The case was prosecuted by Assistant U.S. Attorney Paul D. Lochner.
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Page County, Iowa, Resident Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA- On July 24, 2015, James Paul Davis, a 31 year-old resident of Shenandoah, Iowa, was sentenced by United States District Court Judge James E. Gritzner to 192 months in prison for conspiracy to distribute methamphetamine, announced United States Attorney Nicholas Klinefeldt. Davis was also ordered to serve five years of supervised release following the period of imprisonment.
Davis entered a guilty plea on March 11, 2015, to the charge of conspiracy to distribute methamphetamine. The plea of guilty resulted from a year-long investigation that showed large quantities of methamphetamine were transported to Southwestern Iowa from the border region in Texas for distribution across Southwestern Iowa and into Eastern Nebraska from September of 2013 to June of 2014.
The investigation was conducted by the Iowa Division of Narcotics Enforcement, Page County Sheriff’s Office, Shenandoah, Iowa, Police Department, Mills County Sheriff’s Office, Southwest Iowa Narcotics Task Force, Omaha, Nebraska, Police Department, Metro Area Fugitive Task Force, and the United States Marshal’s Service for the Southern District of Iowa.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Olney Man Indicted for Social Security FraudRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that David Mitchell Carter, 49, of Olney, Illinois, was indicted on July 22, 2015, by a federal grand jury in the United States District Court in East Saint Louis, Illinois, on one count of Theft of Government Funds. If convicted, Carter faces maximum penalties of ten years in prison, a $250,000 fine, and three years of supervised release.
The indictment alleges that from around January 2008, continuing to around January 2014, Carter did knowingly steal and convert money belonging to the Social Security Administration, having a value in excess of $1,000.00, by concealing his employment status in order to receive benefits from the Social Security Administration’s Title II Disability Insurance Benefits program, to which he knew he was not entitled by failing to disclose income he earned through employment.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the United States must prove guilt beyond a reasonable doubt.
The case was investigated by the U.S. Social Security Administration, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
New York Man Sentenced, 2nd Defendant Pleads Guilty in Counterfeit Credit Card SchemeRead the Press Release
PROVIDENCE, R.I. - Joshua Cutchin, 27, of Brooklyn, N.Y., has been sentenced to 18 months in federal prison for conspiracy to possess and for possessing more than 135 fraudulent credit cards, announced United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
At sentencing on July 23, U.S. District Court Chief Judge William E. Smith also ordered Cutchin to serve two years supervised release upon completion of his prison term and to pay restitution in the amount of $3,910.59. Cutchin pleaded guilty on April 17, 2015, to one count of conspiracy to possess counterfeit credit cards and one count of possession of counterfeit credit cards.
Jibri Eady, 22, of Brooklyn, N.Y., a co-conspirator in this matter, is scheduled to be sentenced on October 9, 2015. Eady pleaded guilty on July 23 to one count of conspiracy to possess counterfeit credit cards and one count of possession of counterfeit credit cards.
According to court documents and information presented to the court, on December 30, 2014, Jibri Eady and Joshua Cutchin were traveling north on Route 95 when their vehicle was stopped by Rhode Island State Police troopers for speeding. The operator of the vehicle, Jibri Eady, was found to have a suspended New York driver’s license and was taken into custody. Cutchin was also detained.
During searches of the vehicle by Rhode Island State Police and the United States Secret Service, 139 counterfeit credits cards and a sheet of counterfeit hologram stickers of MasterCard world symbols resembling the MasterCard world symbols on the back of counterfeit MasterCards were seized.
The investigation by the Rhode Island State Police Financial Crimes Unit and the United States Secret Service determined that several purchases were made using fraudulent cards similar to those seized drawn from at least six different financial institutions.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
New York Man Sentenced to 11 Years in Prison for Armed Robbery of Paramus Electronics StoreRead the Press Release
TRENTON, N.J. – A Brooklyn, New York, man was sentenced today to 132 months in prison for participating in the armed robbery of an electronics store in Paramus, New Jersey, U.S. Attorney Paul J. Fishman announced.
Unique Randolph, 28, previously entered a plea of guilty before U.S. District Judge Joel A. Pisano on May 5, 2014, and his guilty plea was accepted today by U.S. District Judge Anne E. Thompson. Randolph pleaded guilty to Count Six and Count Seven of a superseding indictment charging him with committing a Hobbs Act robbery and using a firearm in furtherance of that robbery. Judge Thompson imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Jan. 16, 2013, Randolph and another man entered a T-Mobile store in Paramus brandishing a firearm, while Carl Williams, 31, also of Brooklyn, waited outside as a lookout and get-away driver. While the other man brandished a firearm, Randolph escorted three store employees and a customer into the backroom. Randolph forced them to lie on the floor, while he used zip-ties to bind their arms and legs. While the two men were looting cell phones, a UPS employee walked into the backroom and then tried to leave to store. The robbers stopped him at gunpoint and brought him into the backroom. While the other conspirator aimed his firearm at the UPS employee, Randolph forced him to lie on the floor and bound his arms and legs. The two men then fled with the stolen cell phones.
In addition to the prison term, Judge Thompson sentenced Randolph to serve three years of supervised release. Williams pleaded guilty to his role in the robbery and is currently scheduled for sentencing on Oct. 5, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. He also thanked the Linden, Paramus, and Woodbridge police departments, as well as the New York City and Nassau County police departments and the Kings County District Attorney’s Office in New York for their work in this case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Damien Conforti Esq., Newark, New Jersey
Missouri Man Indicted for Attempting to Pass Forged PrescriptionsRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Luke Xavier Lore, 47, formerly of Saint Louis, Missouri, was indicted on July 22, 2015, by a federal grand jury in the United States District Court in East Saint Louis, Illinois. Lore was charged with two counts of Attempting to Acquire or Obtain a Controlled Substance by Misrepresentation, Fraud, Forgery, Deception or Subterfuge. The charges carry maximum penalties of four years in prison, a $250,000 fine, and one year of supervised release. Lore is detained, that is, held without bond, pending trial.
The indictment alleges that on or about February 2, 2015, in Madison County, and on or about April 6, 2015, in Saint Clair County, Lore forged prescriptions and attempted to have them passed at pharmacies. In February, as alleged, he attempted to illegally obtain Hydrocodone, a Schedule II controlled substance, and Alprazolam (trade name: Xanax), a Schedule IV controlled substance. In April, as alleged, he attempted to illegally obtain Hydrocodone (trade name: Norco).
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the United States must prove guilt beyond a reasonable doubt.
The case was investigated by Drug Enforcement Administration with the assistance of the Alton Police Department. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
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 Kermit Clark, age 44, 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.
“This investigation highlights how DEA Baltimore successfully conducts long-term complex investigations,” stated Acting ASAC Shawn Ellerman. “The case stretched from Staten Island, New York to Houston, TX and I want to commend the agents for their careful and methodical work which resulted in the dismantling of a large scale drug trafficking organization that imported hundreds of kilograms of cocaine into the Baltimore area.”
According to his plea agreement, from September 2012 to October 2014, the Jenifer DTO supplied Clark and others with kilogram-quantities of cocaine for distribution in and around the Baltimore-Washington metropolitan areas. Clark became a member of the conspiracy to distribute more than five kilograms of cocaine.
The Jenifer DTO obtained its cocaine from suppliers in or around Houston, Texas. The Jenifer DTO would transport money hidden in secret compartments in “courier vehicles” from Baltimore to Houston. The cocaine was then transported from Houston to Baltimore in the Jenifer DTO’s courier vehicles. In July 2013, a courier vehicle for the Jenifer DTO was intercepted in Arkansas that contained approximately 23 kilograms of cocaine hidden in a secret compartment. Between August 2013 and October 2014, approximately 30 shipments of cocaine, concealed in secret compartments in the Jenifer DTO’s courier vehicles, were made to the Jenifer DTO. On October 9, 2014, approximately 27 kilograms of cocaine were seized from one of the Jenifer DTO’s courier vehicles. .
Clark agreed 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, of Baltimore, previously pleaded guilty to his participation in the conspiracy and was 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.
Manhattan U.S. Attorney and EPA Announce Lawsuit Against Accolade Construction Group Inc., for Violating Lead Paint Safety RulesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith Enck, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against Accolade Construction Group Inc. (“Accolade”), alleging that Accolade repeatedly violated provisions of the Toxic Substances Control Act (“TSCA”) and EPA’s Renovation, Repair, and Painting Rule (“RRP Rule”). The provisions violated by Accolade are designed to protect public health by minimizing the risk of lead exposure during renovations of residential buildings.
Manhattan U.S. Attorney Preet Bharara said: “As alleged in the complaint, Accolade has repeatedly violated rules designed to protect children and others from lead poisoning during renovation of residential buildings. The complaint demonstrates a blatant disregard by Accolade of its responsibilities, and the public health. Through this lawsuit, we aim to protect the public from future violations and ensure that Accolade does not keep the money it took for work that allegedly skirted the law and put people at risk.”
EPA Regional Administrator Judith Enck stated: “Exposure to lead-based paint and paint dust is the leading cause of lead poisoning in the country. Lead is extremely toxic and even low levels of lead in children’s blood affect their IQ and ability to learn. Time after time, this company has violated EPA regulations designed to protect people from lead exposure and, in doing so, has shown little regard for the health of people in buildings they were renovating or for their own workers.”
The lawsuit alleges that in the course of renovating six different Manhattan apartment buildings in 2013 and 2014, Accolade violated the TSCA and the RRP Rule by failing to hire renovators trained and certified in lead-safe renovation work practices, failing to seal off renovation work areas to prevent lead from contaminating other apartments or common areas, and failing to warn building owners and occupants of the risks of lead exposure from its renovations. Accolade also violated the TSCA and the RRP Rule by failing to provide EPA with the records required by the regulations to enable EPA to monitor Accolade’s compliance.
Accolade had previously entered into an administrative Consent Agreement and Final Order with EPA to settle other TSCA and RRP Rule violations. As part of that settlement, Accolade agreed to obey the law in the future. Despite that agreement, Accolade went on to commit additional violations of the same laws designed to prevent lead poisoning.
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The Complaint filed by the United States seeks an order enjoining Accolade from conducting further renovation work until it demonstrates compliance with the TSCA and the RRP Rule and a permanent injunction compelling Accolade to comply with the TSCA and the RRP Rule in the future. The United States also seeks the proceeds received by Accolade for renovation work on jobs in which it failed to comply with TSCA and the RRP Rule.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Mónica P. Folch is in charge of the case.
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Kern County Man Sentenced to 5 Years in Prison for Cocaine SmugglingRead the Press Release
FRESNO, Calif. —Jimmy Gil, aka Joselin Jimelet Gil Sanchez, aka Joselin Gil, aka Gilberto Sanchez, 35, of Shafter, was sentenced today to five years in prison for conspiring with Jose Luis Montoya-Salazar, (Montoya), 42, of Mexico City, and Luis Ricardo Eslava-Corral (Eslava), 42, of Sinaloa, Mexico, to import, distribute, and possess with intent to distribute 38 kilograms, or about 84 pounds, of cocaine, United States Attorney Benjamin B. Wagner announced. In a separate civil proceeding, U.S. District Judge Lawrence J. O’Neill ordered the forfeiture of $3,104,661 in cash that agents seized during the investigation of the criminal case.
Gil’s sentence follows his guilty plea in May 2015. In pleading guilty, Gil admitted that he had conspired with Eslava, the driver of a tractor trailer containing cocaine smuggled into the United States from Mexico at the Otay Mesa Port of Entry, to a location in Bakersfield. After Gil took possession of the tractor trailer, he and Montoya began unloading 18 one-kilogram packages of cocaine from a hidden compartment in the underside of the trailer and placing the cocaine in Montoya’s vehicle. Gil and Montoya were arrested before they were able to unload 20 more kilograms of cocaine concealed in the trailer. Follow-up investigation resulted in the seizure of $3,104,661 in cash hidden in an asphalt roller at the residence of an associate of Gil. The seized cocaine has a street value of over $3 million.
“Through our joint enforcement efforts, we’ve dismantled a criminal organization that posed a serious public safety threat, as evidenced by the amount of cocaine seized,” said Michael Toms, resident agent in charge for Homeland Security Investigations (HSI) Bakersfield. “As this sentence demonstrates, HSI is working closely with its law enforcement partners to prevent these dangerous and addictive drugs from reaching our streets and ensure the perpetrators of such attempts are brought to justice.”
“This investigation began with a tremendous amount of inter-agency coordination and finished with good old fashioned police work. The forfeiture of $3.1 million has dealt a substantial blow to this criminal organization and these illicit proceeds will be put back into communities through local law enforcement efforts,” stated DEA Acting Special Agent in Charge Bruce C. Balzano.
Eslava and Montoya previously pleaded guilty. On July 20, 2015, Eslava was sentenced to two years and eight months in prison. Montoya is scheduled to be sentenced on September 21, 2015.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Drug Enforcement Administration, Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, Kern County Sheriff’s Office, Tulare County Sheriff’s Office, and Bakersfield Police Department. Assistant United States Attorney Karen Escobar prosecuted the criminal case against Gil. Assistant United States Attorney Kevin Khasigian handled the civil forfeiture proceeding.
Kern County Man Sentenced to 15 Years in Prison for Child Pornography OffensesRead the Press Release
FRESNO, Calif. — Thomas Bettis, 54, of Tehachapi, was sentenced today by United States District Judge Anthony W. Ishii to 15 years in prison for receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between January and March 2013, Bettis received and distributed more than 600 images and video files depicting minors engaged in sexually explicit conduct as attachments to email messages. The illicit files also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Bettis was charged with receiving and distributing child pornography on September 4, 2014, and pleaded guilty to this charge on January 12, 2015.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian W. Enos is prosecuting the case.
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 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.
Kankakee Man to Serve Five Years in Prison for Marijuana Growing Operation, Filing False Tax Returns and Making False Statement to BankRead the Press Release
Springfield, Ill. – A Kankakee, Ill., man, has been ordered to serve five years in federal prison. U.S. District Judge Sue E. Myerscough sentenced David Aaron Neblock 38, on Friday, July 24, 2015. Following his release from prison, Neblock was ordered to remain on federal supervised release for four years.
Neblock has been in the custody of the U.S. Marshals Service since he pled guilty on Jan. 29, 2015, to possession with intent to distribute more than 100 marijuana plants, three counts of filing false income tax returns for the 2010, 2011, and 2012 tax years, and making false statements to a financial institution.
According to court documents, in July 2012, members of the Kankakee Area Metropolitan Enforcement Group (KAMEG) seized more than 750 hydroponic marijuana plants from a warehouse in Bradley, Ill., used by Neblock to grow marijuana. The plants, at various stages of growth, were grown under multiple artificial light ballasts, with electric timers that regulated fans, lights and irrigation systems that supplied water and growth enhancement nutrients to the plant.
Neblock was also ordered to pay $52,128 of additional tax due and owing to the Internal Revenue Service that resulted from his omission of other income earned, including income from the sale of narcotics, for tax years 2010, 2011, and 2012,
Further, Neblock agreed to forfeit property, his former residence on River Road in Kankakee, that was used to facilitate or was paid for by proceeds of illegal activity. Neblock admitted that in March 2009, he submitted a false loan application to the bank to purchase the home. In the application, Neblock falsely claimed that he was employed at various businesses and had received an inheritance.
The case was prosecuted by Supervisory Assistant U.S. Attorney Ronda H. Coleman. The charges are the result of investigation by the Kankakee Area Metropolitan Enforcement Group, “KAMEG;” Illinois State Police; Internal Revenue Service Criminal Investigation, and the Federal Deposit Insurance Corporation, Office of Inspector General, with assistance from the Kankakee State’s Attorney’s Office.
July Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 22 indictments charging 24 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Rhonda Anderson, age 36, of Casper, Wyoming, is charged with bank theft and embezzlement between on or about June 7, 2012 to on or about October 28, 2013. The defendant allegedly took approximately $20,964.51from accounts of bank customers and from intended deposits into accounts of the bank and converted these proceeds to her own use and benefit. The maximum possible penalty if convicted is 30 years, a $1,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Selvin Ayala-Quintanilla, age 33, of Crete, Nebraska, is charged with illegal reentry into the United States on or about April 3, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Christopher Baskin, age 44, of Omaha, is charged with tampering with a witness beginning on or about April 2, 2015, and continuing to on or about June 28, 2015. The maximum possible penalty if convicted is 20 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Mark James Decora, age 31, of Winnebago, is charged with assault resulting in serious bodily injury on or about March 21, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jaime Erives-Hernandez, age 47, is charged with illegal reentry into the United States on or about June 16, 2015, following deportation. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jason Freemont, age 48, of Walthill, is charged in a four-count Indictment. Counts I and III of the Indictment charge the defendant with assault with a dangerous weapon on or about June 12, 2015. Counts II and IV of the Indictment charge Freemont with assault resulting in serious bodily injury on or about June 12, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Arturo Hernandez-Rodriguez, age 38, of Lincoln, is charged with illegal reentry into the United States on or about July 7, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Bryan Jensen, age 42, of Omaha, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with felon in possession of a firearm on or about May 15, 2015. The maximum possible penalty if convicted is 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts II and IV of the Indictment charges Jensen with possession with intent to distribute a mixture containing methamphetamine on or about March 5, 2015 and on or about May 5, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges the defendant with carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking offense on or about May 15, 2015. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment.
* Jamie Dean Lewis, age 28, is charged in a six-count Indictment. Counts I and IV of the Indictment charge the defendant with possession with intent to distribute a mixture containing methamphetamine on or about April 5, 2015 and on or about May 28, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Counts II and V of the Indictment charge Lewis with carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking offense on or about April 5, 2015 and on or about May 28, 2015. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment for each count. Counts III and VI of the Indictment charge the defendant with felon in possession of a firearm on or about April 5, 2015 and on or about May 28, 2015. The maximum possible penalty if convicted is 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Shyla Martinez, age 31, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine from an unknown date but at least as early as July 15, 2014, up to and including October 25, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Counts II and IV of the Indictment charge Martinez with distribution of more than 5 grams of actual methamphetamine on or about February 20, 2015 and on or about March 5, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges the defendant with distribution of less than 5 grams of actual methamphetamine on or about March 1, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Marco Tulio Montalvan-Estrada, age 43, of Austin, Texas, is charged with illegal reentry into the United States on or about June 25, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Aloysius Montgomery, age 29, of Omaha, is charged with felon in possession of a firearm on or about June 18, 2015. The maximum possible penalty if convicted is 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Thomas Peterson, age 56, of Kearney, is charged in a five-count Indictment. Counts I thru IV of the Indictment charge Thomas Peterson, a deputy probation officer employed by the State of Nebraska District 9 Probation Office in Kearney, Nebraska, with deprivation of civil rights on various dates. The maximum possible penalty if convicted is 1 year imprisonment, a $100,000 fine, a 1 year term of supervised release, and a $25 special assessment for each count. Count V of the Indictment charges the defendant with making false statements to a government agent on or about May 14, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Elmer Quinteros-Escobar, age 38, of Kearney, is charged with illegal reentry into the United States on or about June 16, 2015, following deportation. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Josue Quiroga, a/k/a Josue Valencia, age 24 and Hamolequet Adi Quiroga, age 31, both of Kearney, are charged in a two-count Indictment. Count I of the Indictment charges both defendants with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine and marijuana beginning on or about August 2014 , and continuing to on or about February, 2015. Count II of the Indictment charges Josue Quiroga with carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking offense on or about August, 2014 and continuing to on or about February, 2015. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment.
* Jose Luciano Ramirez Garcia, age 28, of Omaha, is charged with illegal reentry into the United States on or about June 25, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* J. Guadalupe Ramos Leon, age 39, of Kearney, is charged with illegal reentry into the United States on or about July 8, 2015, following deportation. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Ala Marouf Salameh, age 38, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges Salameh with fraud and misuse of visas, permits, and other documents on or about June 17, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment, charges the defendant with making false statements in a document in a matter within the jurisdiction of a government agency on or about October 27, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Erwin Sample, age 31, of Alliance, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute a mixture containing methamphetamine beginning on or about March, 2014, and continuing to on or about July, 2015. Count II of the Indictment charges Sample with possession of a stolen firearm. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Asael De Jesus Sanchez Escamilla, is charged with illegal reentry into the United States on or about June 12, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Rigoberto Vasquez-Martinez, aka Francisco Gonzalez, age 57 and Maria Elena Macias-Rios, age 50 are charged in a two-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute 500 grams of a mixture containing methamphetamine on or about April 13, 2015. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment.
Count II of the Indictment charges Vasquez-Martinez with illegal reentry into the United States on or about June 12, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Reta White, a/k/a Reta Smith, a/k/a Vanessa Smith, a/k/a Rita Jackson, age 59, of Omaha, is charged with harboring a fugitive on or about June 23, 2015. The maximum possible penalty if convicted is 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Jacqueline Stanfill Indicted for Fraud and Money Laundering ChargesRead the Press Release
KNOXVILLE, Tenn. -- Jacqueline J. Stanfill, 58, of Knoxville, Tenn., was arrested today in Knoxville by agents of the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS). Trial was set for September 30, 2015, before the Honorable Leon Jordan, Senior U.S. District Court Judge.
In July 2015, a federal grand jury returned a six-count indictment against Stanfill alleging wire fraud, mail fraud and money laundering. According to the indictment, which is on file with the U.S. District Court Clerk, she allegedly defrauded individuals by inducing them to provide her with funds for investment with Charles Schwab and Co. Instead of investing the funds with Schwab, she converted the money to her own personal use. Stanfill was the owner and operator of Stanfill Wealth Management in Knoxville.
The investigation, which led to the indictment of Stanfill, was conducted by the FBI and IRS. Assistant U.S. Attorney Frank Dale represents the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Hutchinson Woman Sentenced on False Tax Claim, Firearms ChargesRead the Press Release
WICHITA, KAN. - A Hutchinson woman was sentenced to three years on supervised release and ordered to pay more than $19,000 in restitution for filing false tax returns and violating a federal law prohibiting her from having a gun, U.S. Attorney Barry Grissom said.
Rhonda J. Simmons, 41, Hutchinson, Kan., pleaded guilty to one count of presenting a false tax claim and one count of unlawful possession of a firearm after a felony conviction. In her plea, she admitted that on April 15, 2012, she prepared a false income tax return seeking a refund of $3,014.
On Aug. 14, 2012, the Hutchinson Police Department executed a search warrant on the residence where she was living in Hutchinson. They seized a 20 gauge shotgun belonging to Simmons. She was prohibited from possessing a firearm because she had been convicted of a felony in 2007 in Georgia.
Grissom commended the Internal Revenue Service, the Hutchinson Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case.
Husband and Wife Admit to Procurement Fraud Scheme and to Embezzling Employee BenefitsRead the Press Release
Baltimore, Maryland – Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” age 49, and his wife, Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” age 50, both of Keymar, Maryland, pleaded guilty today to charges in connection with defrauding the United States of over $30 million in connection with obtaining government contracts, stealing over $1.6 million in employee benefits and evading taxes.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Marc I. Machiz, Director of the Philadelphia Regional Office of the Labor Department’s Employee Benefits Security Administration; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Small Business Administration Inspector General Peggy E. Gustafson; and Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations.
“The Tuckers’ fraudulent actions deprived the federal contract employees of Quantell and Intaset of rightfully earned benefits under the Service Contract Act,” stated Special Agent in Charge Steven D. Anderson, of the Washington Regional Office, U.S. Department of Labor - OIG, Office of Labor Racketeering and Fraud Investigations. “My office remains committed to investigating these types of crimes, and we will continue to proactively work with our law enforcement partners to bring corrupt individuals and companies to justice.”
According to their pleas, the Tuckers were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation from 2007 to 2010. Quantell and Intaset provided labor services to federal government agencies. In 2010, the Tuckers sold Intaset, but continued to have influence on the operation of Intaset.
Federal Procurement Fraud
From 2007 to 2013, the Tuckers and their co-conspirators, including Jonathan Mickle, made false representations to the government regarding the eligibility of Quantell and Intaset for small business, Service Disable Veteran Owned Small Business and other set-aside contracts, including the 2007 Camp Lejeune contract, 2007 Battle Creek, Michigan contract, 2008 Andrews Air Force Base contract, 2008 Beale Air Force Base contract, 2011 Langley Air Force Base contract and 2011 Camp Lejuene contract. The Tuckers and co-conspirators falsely represented the past revenues, ownership, controlling officers, distribution of profits, location and other key attributes of Quantell and Intaset to multiple federal agencies. When bid protests were lodged by competing firms, the Tuckers and co-conspirators prepared and submitted false responses. The Tuckers’ actions cause other companies, which the government actually meant to support with set-aside contracts, to lose out on valuable opportunities to provide contracting services to the federal government.
The Tuckers used the money from the government contracts for their own personal benefit, including building, purchasing and leasing a 5,000 square foot residence in Swanton, Maryland; additions to the real property in Taneytown, Maryland, including a personal residence, gym, bar and break room equipped with high definition TVs, top of the line weight equipment, video games and combat wrestling equipment; additions to the real property in Keymar; 45 foot sailboat named “Quantell;” 2008 Audi A8; 2011 BMW; and mortgage payments related to real estate, watercraft and vehicles.
The Tuckers and their co-conspirators used aliases and false identities to communicate with the U.S. Department of Defense (DOD) in order to falsely portray the past performance of Quantell. They created a fake corporate entity name Staff-It with a fake period of performance from 2005 to 2008 involving more than $12 million of work by Quantell for Staff-It, and falsely indicated that Quantell was supplying service workers at military treatment facilities for Staff-It. Then they created phone lines and had conspirators participate in false phone conversations with DOD representatives so as to deceptively win the 2011 Camp Lejeune contract. The Tuckers and their co-conspirators carried out similar schemes with respect to other past performances, establishing internet phone lines to spoof the location of businesses, and labeling the phone lines based on the fake company contact person.
The Tuckers admit that as a result of the procurement fraud conspiracy, the full value of the contracts awarded to Quantell and Intaset based on false representations was at least $30 million.
Employee Benefit Fraud
Moreover, the service contracts awarded by the United States to Quantell and Intaset, as well as the McNamara-O’Hara Service Contract Act (SCA), required Quantell and Intaset to provide bona-fide health and welfare benefits to the service contract employees of Quantell and Intaset hired to do the work for the federal government. From 2008 to at least 2012, however, the Tuckers stopped contributing the SCA funds to any bona-fide health and welfare plan. Instead, the Tuckers lied to employees of Quantell and Intaset, and to multiple federal agencies, regarding the compliance of Quantell and Intaset with the SCA, so that the Tuckers and their co-conspirators, including Jonathan Mickle, could divert at least $1.6 million in SCA monies paid by the government to Quantell and Intaset under service contracts for their own personal benefit. The Tuckers and their co-conspirators used shell companies and companies that they were associated with to conceal the diversion of SCA funds to them. The Tuckers falsely told employees that they would be receiving health and welfare benefits, when they knew in fact that the money was being diverted to buy luxury vehicles, make improvements on the Tuckers’ residences.
The Tuckers admit that as a result of the fraud involving employee benefits, more than $1.6 million of the SCA funds were fraudulently diverted for the co-conspirators’ benefit from at least 350 individual employees.
Tax Fraud
Finally, the Tuckers attempted to evade income tax due of $492,961 for tax years 2009, 2010 and 2011.
The Tuckers and the government have agreed that if the Court accepts the plea agreements, Shaun Tucker will be sentenced to eight years in prison and Joanna Tucker will be sentenced to between six and 18 months in prison. Shaun Tucker further agrees to pay forfeiture of at least $30 million and Joanne further agrees to pay forfeiture of at least $20 million, and that their residence in Keymar is subject to forfeiture. Both Tuckers also agree to pay restitution of at least $1.6 million in connection with the employee benefit fraud, and pay restitution to the IRS of $492,961 for tax evasion. U.S. District Judge J. Frederick Motz has scheduled sentencing for both Tuckers for November 20, 2015, at 12:00 p.m.
In a related case, co-conspirator Jonathan Mickle, age 43, of Asheville, North Carolina, formerly of Taneytown, Maryland, pleaded guilty on June 25, 2015 to conspiracy to commit wire fraud and tax fraud in connection with the fraud schemes. Judge Motz has scheduled sentencing for November 3, 2015, at 2:15 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This and other cases brought by members of the Task Force demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein commended the U.S. Department of Labor –OIG/Office of Labor Racketeering and Fraud Investigations, IRS – Criminal Investigation, U.S. Department of Labor - Employee Benefits Security Administration, DCIS, SBA Office of Inspector General, and Air Force Office of Special Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who are prosecuting the case.
Heroin Trafficker Sentenced to More Than 7 Years in PrisonRead the Press Release
PROVIDENCE, R.I. – Efrain Arroyo Melendez, aka Frank Feliz Baez, 49, of the Allston section of Boston, Mass., has been sentenced to 87 months in federal prison for trafficking heroin into Providence, R.I., announced United States Attorney Peter F. Neronha and Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
At sentencing on July 22, 2015, U.S. District Court Judge Mary M. Lisi also ordered Melendez to serve 5 years supervised release upon completion of his prison sentence. Melendez pleaded guilty on March 2, 2015, to one count of conspiracy to distribute and to possess with the intent to distribute heroin, and one count of possession and attempt to possess with the intent to distribute heroin.
According to court records and information presented to the court, on January 27, 2014, as a result of a DEA investigation into the alleged trafficking of heroin into Providence, DEA agents, with the assistance of Rhode Island State Police, intercepted a piece of luggage at the Amtrak Station inside of which they discovered approximately 2.3 kilograms of heroin.
After taking the woman who was carrying the luggage, Amalia Martin, 39, of Providence, into custody, agents learned that the package of heroin was to be delivered to Melendez. The next day DEA agents arranged to deliver a package purporting to contain the heroin to Melendez. Melendez was arrested after taking custody of the package from a DEA undercover agent.
Martin, who pleaded guilty on December 18, 2014, to one count of conspiracy to distribute and to possess with the intent to distribute heroin, and one count of possession and attempt to possess with the intent to distribute heroin is scheduled to be sentenced on September 15, 2015.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
Officers assigned to the Rhode Island DEA Drug Task Force assisted in the investigation.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Haworth Man Pleads Guilty to Use of Telephone to Make Bomb ThreatRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that STANLEY RAY MIXON, age 39, of Haworth, Oklahoma, pled guilty to USE OF TELEPHONE TO MAKE BOMB THREAT, in violation of Title 18, United States Code, Section 844(e), punishable by up to 10 years imprisonment, up to a $250,000.00 fine or both.
The Indictment alleged that on or about April 2, 2015, in the Eastern District of Oklahoma, the Defendant, STANLEY RAY MIXON, through use of a telephone willfully made a threat to unlawfully damage and destroy a building, to-wit: the United States Post Office in Idabel, Oklahoma, by means of an explosive, in and affecting interstate commerce.
The charges arose from an investigation by the McCurtain County Sheriff’s Department, the Oklahoma Bureau of Narcotics and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Chris Wilson represented the United States.
Fresno Man Sentenced to 10 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Stephen Stinson, 45, of Fresno, today to 10 years in prison for being a convicted felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 22, 2014, police officers stopped Stinson for driving while using a cellphone. The officers noticed a large blade protruding from under the driver’s seat and saw a knife on the passenger’s seat. Officers discovered that Stinson had no driver’s license, was on probation and had a warrant for his arrest. During a search of the car, officers found a sawed-off shot gun and ammunition. Stinson had two prior felony convictions and was prohibited from possessing a firearm.
“Every time we seize a single firearm from a convicted felon, we prevent impending violent acts from occurring in our neighborhoods,” stated ATF Acting Special Agent in Charge Eric D. Harden. “ATF and our partners will not surrender to those who are a threat to our communities and cannot lawfully possess a firearm.”
This case is a product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. The case is part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorneys Kimberly Sanchez and Patrick R. Delahunty prosecuted the case.
Fresno Man Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
FRESNO, Calif. —Tryvell Powell, 34, of Fresno, pleaded guilty today to sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to the plea agreement, Powell communicated with a 16-year-old girl on Facebook and persuaded her to leave Modesto where she was living and travel to Fresno. She then engaged in sex acts with strangers at Powell’s request for his monetary benefit.
According to court documents, a relative of the girl reported seeing pictures of the teen in an online advertisement for prostitution. Fresno detectives used the advertisements to contact the girl and to arrest Powell.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
Powell is scheduled to be sentenced on October 19, 2015, in federal court in Fresno by United States District Court Judge Lawrence J. O’Neill. Powell faces a minimum of 10 years to life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 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.
Four Muskogee Defendants Plead Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced the guilty pleas of four (4) defendants in federal court.
KEVIN BERNARD GREEN, age 35, of Muskogee, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years or more than Life imprisonment, a fine of up to $10,000,000.00 or both.
ELIJAH ALFRED MAYES, JR., age 35, JAZZ ELLINGTON PIERCE, age 28, and ANDREANA LYNN HILL, age 38, all of Muskogee, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years or more than 40 years imprisonment, a fine of up to $5,000,000.00 or both.
The Indictment alleged that the defendants coordinated and orchestrated the transportation of cocaine from source locations to the Eastern District of Oklahoma and used telephones, cellular and otherwise, to conduct and carry out the organization’s objectives.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Muskogee Police Department, the Muskogee County Sheriff’s Department and the United States Marshal Service.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty pleas and ordered the completion of presentence reports. Sentencings will be scheduled following their completions. The defendants will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.