Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
24 July 2015
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 State Senator John Sampson Convicted of Obstruction of Justice and False StatementsRead the Press Release
Earlier today, following four weeks of trial, a federal jury in Brooklyn, New York, returned guilty verdicts against New York State Senator John Sampson, for one count of obstruction of justice and two counts of making false statements to federal agents. Since 1997, Sampson has served in the New York State Senate representing the 19th Senate District in southeastern Brooklyn. From June 2009 to December 2012, Sampson was the leader of the Democratic Conference of the Senate, and from January 2011 to December 2012, he was also the Senate Minority Leader. Sampson has also served as the chairman of the Senate Ethics Committee and the Senate Judiciary Committee. When sentenced by United States District Judge Dora L. Irizarry, Sampson faces a sentence of up to 20 years in prison.
The verdict was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“Today’s verdict stands as a vindication of the efforts of this office and the FBI to aggressively root out corruption undertaken by a public official in New York,” stated Acting United States Attorney Currie. “Sampson, a lawyer, New York State Senator, Senate leader, and one time chair of the Senate Ethics Committee, abused his power and violated his oath undermining the very system of laws he was sworn to uphold. He will now be held accountable for his crimes.” Mr. Currie expressed his grateful appreciation to the Federal Deposit Insurance Corporation, Office of the Inspector General; the Public Integrity Section of the Department of Justice; and the Office of the Inspector General of the Department of Justice for their assistance in this case.
FBI Assistant Director-in-Charge Rodriguez stated, “Sampson’s decision to engage in corrupt and illegal behavior was further aggravated by his efforts to conceal the scheme from FBI agents charged with investigating his misconduct. As this case proves, we, along with our partners, will continue to root out obstruction of justice in all forms and at all levels of government.”
The evidence at trial and publicly filed documents in the case established that, among other things, Sampson, as an attorney practicing in Brooklyn, embezzled funds he held in escrow from the sale of real estate properties. Concerned that his theft might be discovered by law enforcement, in 2006 Sampson asked an associate for $188,500 to replenish the stolen funds. In exchange, Sampson used his position as a Senator to assist the associate’s real estate business interests.
In the summer of 2011, the associate was arrested and charged by this office with bank and wire fraud. Sampson feared that the associate might cooperate with the government and disclose Sampson’s embezzlement, so Sampson contacted a close personal friend, who was also a supervisory paralegal in this office, and asked him to find out if Sampson was under investigation and to obtain confidential information about the associate’s case, including the identities of cooperating witnesses. The paralegal agreed and reported his findings to Sampson.
Sampson told his associate about his source and added that if they could determine the identities of cooperating witnesses in the associate’s case, they could “take them out.” Sampson also suggested that they hire a private investigator to do the “dirty work.”
Sampson then directed his associate to withhold from the government evidence regarding the $188,500 payment. At a February 2012 meeting, the associate told Sampson that the government had subpoenaed the associate’s business records, including a check register page documenting the payment. The Associate showed the page to Sampson, who examined it and stated, “That’s a problem . . . I mean for me.” Sampson kept the page and instructed his associate not to disclose it to the government.
On July 27, 2012, FBI Special Agents interviewed Sampson, and he denied being familiar with the check register page. Sampson also falsely denied directing his Senate staffers to take certain actions relating to regulatory issues for a liquor store in which Sampson held an ownership interest. At the conclusion of the interview, the agents advised Sampson that he had lied to federal agents, which constituted a federal crime. When asked whether he wished to revise his statement, Sampson stated, “Not everything I told you was false.”
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Paul Tuchmann, Alexander Solomon, and Marisa Seifan are in charge of the prosecution.
The Defendant:
JOHN L. SAMPSON
Age: 50
E.D.N.Y. Docket No. 13-CR-269 (DLI)Miami-Dade County Resident Sentenced to 41 Months in Prison for Identity Theft Tax Fraud Scheme Involving $418,679.66 in Fraudulent RefundsRead the Press Release
A Miami-Dade County resident was sentenced to 41 months in prison, followed by three years of supervised release, for his participation in an identity theft tax fraud scheme involving $418,679.66 in fraudulent refunds.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Junior St. Fleurose, 29, of Miami, previously pled guilty to five counts of theft of government funds.
According to court documents, from January 2010 through July 2011, St. Fleurose received forty-three (43) Treasury tax refund checks and wire deposits into his personal and business bank accounts that were in other people's names. Some of the tax refund checks and wires were from fraudulently filed tax returns without the knowledge of the taxpayer. Others were Treasury checks stolen from individuals who filed a legitimate tax return. The defendant converted $325,432.02 in tax refunds for his and someone else's use at various vendors in the South Florida area. St. Fleurose also received twenty-six (26) tax Refund Anticipation Loan checks into his bank accounts totaling $89,440.64.
The total amount of loss is $418,679.66.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI, and USPIS. The case is being prosecuted by Assistant U.S. Attorney Ilham A. Hosseini.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Mexican national sentenced to 64 months in prison for possessing heroin with intent to distributeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Mexican national was sentenced to 64 months in prison for possessing heroin with intent to distribute.
Uriel Coria-Coria, 22, of Mexico, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute heroin. According to evidence presented at the March 25, 2015 guilty plea, Coria was riding with co-defendants Jose Segovia-Ayala, 40, of El Salvador, and Israel Gabriel-Miranda, 45, of Guatemala, July 1, 2014 on I-20 in Bossier Parish. A Louisiana State Trooper conducted a traffic stop, and they were questioned. Upon further investigation, the vehicle was searched and three bags of heroin were discovered in the rear quarter panels accessed inside of the vehicle.
Segovia-Ayala was sentenced on June 25, 2015 to 64 months in prison on one count of possession with intent to distribute heroin. Gabriel-Miranda was sentenced on March 11, 2015 to six months in prison on one count of being an alien having reentered the United States after being removed.
Homeland Security Investigations, DEA and Louisiana State Police investigated the case. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Massachusetts Man Indicted for Illegal Possession of Firearm in New HampshireRead the Press Release
Concord, New Hampshire - Donald Feith, Acting United States Attorney for the District of New Hampshire, today announced that a federal grand jury in Concord returned a one-count indictment charging JEREMY ROBINSON, 26, of Hyannis, Massachusetts, with illegal possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1). The indictment was returned on July 1, 2015, and ROBINSON was arraigned yesterday in front of U.S. Magistrate Judge Andrea Johnstone, where he entered a plea of not guilty.
According to the indictment and other statements made in court, ROBINSON travelled to New Hampshire in November 2014 and possessed an H&K 9mm pistol and ammunition manufactured by Fiocchi. At the time, ROBINSON was prohibited from possessing a firearm as a result of a prior felony conviction.
Trial has been scheduled to take place between September 1-15, 2015, in front of Chief U.S. District Judge Joseph Laplante. If convicted, ROBINSON faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
Acting U.S. Attorney Feith stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Barnstable Police Department, and the Barnstable Sheriff's Office. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
Lafayette store owner pleads guilty to selling counterfeit merchandiseRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Lafayette business owner pleaded guilty Thursday to selling counterfeit clothes, phone cases and other items.
Tawfic Ahmed Saleh, 32, of Lafayette, pleaded guilty before U.S. District Judge Richard T. Haik to one count of trafficking in counterfeit goods. According to the guilty plea, law enforcement agents searched AA Discount Plus LLC doing business as “Urban Buzz,” a clothing and variety store in Lafayette on November 18, 2014. During the search, agents found and seized numerous suspected counterfeit items including: 258 articles of clothing and 20 watches labeled “Ralph Lauren Polo”; 42 phone cases labeled “Otterbox”; 25 women’s purses, four watches and 25 wallets labeled “Michael Kors”; 45 watches labeled “Casio”; 15 belts labeled “Guicci”; and eight belts labeled “Louis Vuitton.” Saleh was later questioned and admitted to selling counterfeit items. Saleh operated the business from 2005 to 2007 and reopened it in 2009.
Saleh faces up to 10 years in prison, three years supervised release and a $2 million fine. A sentencing date was not set.
Homeland Security Investigations investigated the case. Assistant U.S. Attorney David C. Joseph and John Luke Walker are prosecuting the case.
Lafayette man pleads guilty to stalking, harassing ex-wifeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Lafayette man pleaded guilty Thursday to using telephone masking technology to harass his ex-wife.
Arthur Craig Wagley, 55, of Lafayette, pleaded guilty before U.S. District Judge Richard T. Haik to one count of telecommunication harassment. According to the guilty plea, Wagley made hundreds of harassing phone calls to his ex-wife from July 4, 2011 to October 7, 2013. Wagley used a telephone spoofing service to call his ex-wife anonymously. He could also set up calls to appear to be family or friends’ numbers and could even disguise his voice using the service. Wagley used these tactics on October 12, 2011, to make 12 phone calls throughout the day, appeared to be someone else and used offensive language. Wagley has been divorced from his ex-wife since 2008. Wagley pleaded no contest and was convicted on September 16, 2010 in the 27th Judicial District Court of Louisiana in St. Landry Parish to felony stalking of his ex-wife. A protective order was issued in 2010 and expired on March 12, 2012.
Wagley faces up to two years in prison, one year supervised release and a $250,000 fine. A sentencing date was not set.
The FBI and the St. Landry Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Jacksonville Sex Offender Pleads Guilty to Possession of Firearms by A Convicted FelonRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Daniel Todd Manning (43, Jacksonville) has pleaded guilty to possessing several firearms after having been convicted of felony child sex offenses in the State of Kansas. He faces up to 10 years in federal prison. Manning has been in custody since his arrest on April 30, 2014, in Jacksonville. A sentencing hearing has not yet been set.
According to court documents, on July 26, 2013, Manning was adjudicated guilty, in Kansas, on multiple counts of indecent liberties with a child. Prior to his sentencing, he fled the state and traveled to Jacksonville, where he established a residence. Because Manning was a convicted felony sex offender and had fled from supervision, Kansas authorities issued a warrant for his arrest. Law enforcement in Jacksonville, including the United States Marshals Service, discovered the location of Manning’s Jacksonville residence and, on April 30, 2014, entered the location to search for him. During the search, they observed several rifles in a glass-front gun case in Manning’s bedroom, as well as a pistol located inside the nightstand next to Manning’s bed. Manning had concealed himself in the attic of the residence. The Jacksonville Sheriff’s Office SWAT team seized the firearms, including five rifles, two shotguns, and a pistol. Hours later, Manning surrendered. He later stated that he had brought all of the guns with him when he fled from Kansas to avoid sentencing.
This case was investigated by the Jacksonville Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
It was also 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. 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.
Iranian Company Pleads Guilty to U.S. Export ViolationsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania and the Office of Export Enforcement of the United States Department of Commerce announced that today in U.S. District Court in Harrisburg, an officer of FIMCO, an Iranian corporation, entered a plea of guilty on behalf of the corporation to conspiracy to evade export licensing requirements.
The conspiracy was in connection with an attempt to smuggle to Iran a machine with possible military as well as civilian applications. The guilty plea was entered before United States District Court Magistrate Judge Susan E. Schwab.
In December 2012, a federal grand jury in Harrisburg charged FIMCO in a sealed indictment made public today. In April 2014, an American company, Hetran, Inc., an engineering and manufacturing corporation in Orwigsburg, Schuylkill County, Pennsylvania, and its President, Helmut Oertmann, were charged with participating in the conspiracy.
Hetran manufactured a large horizontal lathe, also described as a bar peeling machine (“peeler”), valued at more than $800,000 and weighing in excess of 50,000 pounds. The machine is used in the production of high grade steel for the manufacture of automobile and aircraft parts.
Under U.S. law and regulations, American companies are forbidden to ship “dual use” items (items with civilian as well as military or proliferation applications), such as the peeler, to Iran without first obtaining a license from the U.S. Government. Aware that it was unlikely that such a license would be granted, FIMCO, which does business in Dubai, United Arab Emirates, and other alleged co-conspirators agreed to falsely state on the shipping documents that the end-user of the peeler was Crescent International Trade and Services FZE (Crescent), an affiliated company, knowing that the machine would subsequently be shipped to Iran after being off-loaded in Dubai.
In June 2012, Hetran caused the peeling machine to be shipped from Pennsylvania to Dubai in the United Arab Emirates, fraudulently listing Crescent as the end-user, knowing that the shipment was ultimately being sent by FIMCO to Iran in violation of federal law. The Office of Export Enforcement, Bureau of Industry and Security (BIS), U.S. Department of Commerce detected the shipment and ordered that it be re-delivered to the United States.
As part of its plea agreement with the United States, FIMCO agreed that the government would recommend a $250,000 criminal fine. The plea agreement is subject to the approval of the Court. The company also has agreed under a settlement with BIS to pay a $837,500 civil penalty to the U.S. Department of Commerce, of which it must pay $587,500 out-of-pocket, with the remaining $250,000 suspended for two years. The suspended portion of the civil penalty will be waived thereafter so long as FIMCO complies with the terms of the plea agreement and any criminal sentence and satisfies certain additional conditions. FIMCO will also be made subject to a two-year suspended denial of its export privileges.
"Today's guilty plea is the result of our commitment to disrupt illicit networks aimed at evading our export controls and jeopardizing our national security," said Under Secretary of Commerce Eric L. Hirschhorn. "Commerce Department, Office Export Enforcement Special Agents thwarted this illegal scheme by utilizing their unique authorities as the enforcers and regulators of our nation’s ‘export control laws to pursue violators," he said.
U.S. Attorney Peter Smith praised the Special Agents of the Department of Commerce, Office of Export Enforcement for their tenacity and global team effort in investigating the case, coordinating with foreign governments, executing search warrants, and most importantly, seizing the horizontal lathe upon its arrival in Dubai. The seizure of key shipping documents, emails and correspondence from Hetran to Iran revealed the scheme, and was critical to the success of the case, and to shutting down the contemplated shipment.
During the investigation by the Department of Commerce’s Bureau of Industry and Security (BIS), FIMCO and Crescent were placed on BIS’s Entity list in August 2014. The Entity List identifies foreign parties that are prohibited from receiving listed items unless the exporter secures a license. Those persons present a greater risk of diversion to weapons of mass destruction (WMD) programs, terrorism, or other activities contrary to U.S. national security or foreign policy interests. By publicly listing such persons, the Entity List serves as an important tool to prevent unauthorized trade in such items.
In December 2014, Helmut Oertmann and Hetran were sentenced by Judge Kane to 12 months’ probation; Oertmann and Hetran were ordered as part of a settlement with BIS to pay a penalty of $837,500 with $337,500 of that amount paid out-of-pocket and the remainder conditionally suspended, which penalty Judge Kane adopted as to Oertmann and Hetran. The other indicted company, Crescent International Trade and Services FZE, and the three Iranian individuals who served as officers of FIMCO, Khosrow Kasraei, Reza Ghoreishi, and Mujahid Ali, are presently fugitives.
The case was investigated by the New York Field Office of the Office of Export Enforcement, Bureau of Industry and Security, Department of Commerce. The Department of Commerce’s Office of the Chief Counsel for Industry and Security handled the civil proceedings. The prosecution was coordinated by Assistant U.S. Attorneys Christy H. Fawcett and Gordon A. Zubrod of the U.S. Attorney’s Office and was overseen by the National Security Division of the U.S. Department of Justice.
Indictments and Criminal Informations 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 for the corporation is a term of supervised release, 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 and protect the public. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Investment Fund President Indicted for Fraud and Money LaunderingRead the Press Release
SYRACUSE, NEW YORK –A Cazenovia, NY man was arrested yesterday on charges of fraud and money laundering, announced United States Attorney Richard S. Hartunian and FBI Special Agent In Charge Andrew Vale.
As alleged in the Indictment, James P. Griffin, 70, of Cazenovia is the Chief Executive Officer of several investment companies in Cazenovia, which marketed a financial product called the 54 Freedom Charitable Gift Annuity. This financial product purportedly allowed investors to make a gift to charity and still receive income. The 54 Freedom Charitable Gift Annuity was represented to be backed by a highly rated major insurance carrier and would provide guaranteed life-time income for the investor. The Indictment alleges that over $1.6 million invested by clients were not used to purchase annuities from A rated insurance companies, but instead were used by Griffin for his own use and to pay the expenses of various companies he headed. The investors initially received monthly payments as promised, but these regular payments are alleged to have stopped in approximately January 2013.
Griffin was arrested yesterday and appeared for arraignment in federal court in Syracuse. He pled not guilty to the charges, which include five counts of mail fraud, eight counts of wire fraud, and five counts of money laundering. He faces a maximum term of imprisonment of twenty years on each of the mail and wire fraud counts and ten years on the money laundering counts. Each count carries a maximum fine of $250,000.
The case was investigated by the Internal Revenue Service-Criminal Investigation, and Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Edward R. Broton.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on July 23, 2015, and entering pleas of Not Guilty were:
- JESSE WADE NEWSOM, a 28-year-old resident of Cascade, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, NEWSOM faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-41
- JIMMIE RICHARD JAMES, a 72-year-old resident of Ballantine, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, JAMES faces life in prison, $10,000,000 in fines and 5years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 15-82
Appearing before U.S. Magistrate Ostby in Billings on July 22, 2015, and entering pleas of Not Guilty were:
- JASON HOMER JENKINS, a 38-year-old resident of Belgrade, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, JENKINS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-31
- JEFFREY MICHAEL LEO, a 43-year-old resident of Havre, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession of methamphetamine with intent to distribute and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, LEO faces life in prison, $10,000,000 in fines and 5years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-66
Appearing before U.S. Magistrate Lynch in Missoula on July 21, 2015, and entering pleas of Not Guilty were:
- JOSEPH ALLEN EHLI, a 36-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, EHLI faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 15-13
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment Unsealed Charging Former Executive Director of Canadian County Charity for Children with EmbezzlementRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury indictment was unsealed today charging TRACI LORRE OWENS, 46, of Edmond, Oklahoma, with embezzlement from a Canadian County charity for child crime victims, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the indictment, Owens was the Interim Executive Director and then the Executive Director of Canadian County Court Appointed Special Advocates ("CASA") from about November 2010 until July 2013. Canadian County CASA is an organization that received at least $10,000 in federal monetary assistance annually from the United States Department of Justice to support child victims of crime. Owens is alleged to have embezzled money from Canadian County CASA by making and depositing checks payable to herself and to cash for reimbursement of unauthorized expenses and duplicate payroll checks.
If convicted, Owens faces a maximum penalty of ten years in prison, a fine of up to $250,000, and mandatory restitution. The United States also seeks approximately $70,000 in forfeiture from Owens.
This case is the result of an investigation by the Department of Justice Office of Inspector General, with assistance from the Canadian County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and Scott E. Williams.
The public is reminded that an indictment is merely an accusation and that the defendant is presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Indictment Charges 5 West Haven Residents after Investigation into July 4th Blast and HomicideRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a grand jury in Bridgeport returned an indictment yesterday charging five West Haven residents with federal offenses stemming from an investigation of an explosion and homicide that occurred in Hamden on July 4, 2015.
According to allegations contained in court documents, at approximately 11:00 a.m. on July 4, 2015, an explosion took place on Wintergreen Avenue in Hamden. Responding law enforcement located a deceased white male, who had been wrapped in plastic garbage bag material and bound by rope material, in a wooded area close to where the explosion had occurred. An explosive-type device and debris were also located in close proximity to the body. The victim, who had also sustained three apparent gunshot wounds, was subsequently identified as Edward Brooks, 39, of West Haven. After West Haven Police informed investigators that Brooks had been residing with CHRISTOPHER MILLER at 59 Front Avenue in West Haven, and that MILLER and other residents of 59 Front Avenue were subjects of an ongoing narcotics investigation, investigators executed a state narcotics search and seizure warrant at 59 Front Avenue and seized numerous items, including pipe bomb making materials that were consistent with the materials found at the Wintergreen Avenue explosion scene, approximately 16 grams of cocaine base (“crack cocaine), approximately 10.6 grams of methamphetamine and narcotics packaging material. Investigators also seized a surveillance DVR, which captured video surveillance from eight cameras placed around the residence.
The indictment charges CHRISTOPHER MILLER, 40, DEBORAH MILLER, 59, NATALI MARTINEZ, 29, JAMES BRYANT, 64, and MAURICE WEARING, 26, with conspiracy to distribute and to possess with intent to distribute cocaine base (“crack cocaine”). The indictment also charges CHRISTOPHER MILLER with possession of an explosive by a convicted felon.
The charge of conspiracy to distribute cocaine base carries a maximum term of imprisonment of 20 years and the charge of possession of an explosive by a convicted felon carries a maximum term of imprisonment of 10 years.
The five defendants are currently detained and face related state charges.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Postal Inspection Service, Connecticut State Police and West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Stephen Reynolds, Jacabed Rodriguez-Coss and Vanessa Richards. This investigation and prosecution is being coordinated with the State’s Attorney’s Office for the Judicial District of Ansonia-Milford.
Hull Resident Arrested and Charged with Theft of Government FundsRead the Press Release
BOSTON – A Hull resident accused of stealing from the Department of Veterans Affairs (VA) was charged with Theft of Government Funds in U.S. District Court in Boston this morning.
Bradley Swartz, 60, is accused of stealing approximately $40,000 from the VA over the course of an estimated three year period. Swartz was arrested this morning after being indicted by a federal grand jury yesterday.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Hull Resident Arrested and Charged with Theft of Government FundsRead the Press Release
BOSTON – A Hull resident accused of stealing from the Department of Veterans Affairs (VA) was charged with Theft of Government Funds in U.S. District Court in Boston this morning.
Bradley Swartz, 60, is accused of stealing approximately $40,000 from the VA over the course of an estimated three year period. Swartz was arrested this morning after being indicted by a federal grand jury yesterday.
The charging statute provide a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Guilty Plea in Drug ConspiracyRead the Press Release
Gulfport, Miss – On Thursday, July 23, 2015, Herman McGee, Jr. entered a guilty plea before District Judge Sul Ozerden, in a case involving conspiracy to possess with intent to distribute over 500 grams of cocaine and conspiracy to possess a firearm in furtherance of drug trafficking, U. S. Attorney Gregory K. Davis announced today.
McGee, 27 of Jacksonville, Florida, faces a minimum of 5 years and a maximum of 40 years in prison, a fine of $5,000,000 and at least 4 years of supervised release on the drug conspiracy and a maximum of 20 years on the firearms charge. Sentencing is set for September 30, 2015.
Previously in the same case, Jalyn Nicole Holland and Keriyae Judekqa Simmons both of Jacksonville entered guilty pleas to interstate travel in aid of an unlawful activity. Each faces a maximum of 5 years in prison, a $250,000 fine and 1 year of supervised release. Michael Lamar Ricks also of Jacksonville entered a guilty plea to conspiracy to possess with intent over 500 grams of cocaine. All are pending sentencing.
The case was investigated by the Harrison County Sheriff’s Department and the Drug Enforcement Administration. The case is prosecuted by Assistant United States Attorney Annette Williams.
Four Defendants Arrested in Multi-County Meth DistributionRead the Press Release
BOISE - Miguel Angel Dorantes, 18, Alberto Lopez, 18, Elizabeth Baeza, 18, Sobeida Galaviz, 24, all of Hailey, Idaho, and Leonel Angel, 20, of Compton, California, were indicted on July 14, 2015, by a federal grand jury in Boise for one count of conspiracy to possess controlled substances with intent to distribute, eleven counts of possession with intent to distribute methamphetamines, and eight counts of distributing a controlled substance near a school, U.S. Attorney Wendy J. Olson announced. An initial appearance was held on July 21, 2015, for four of the defendants. Defendant Dorantes has not yet been found or arrested.
The Indictment alleges that between March 23 and May 28, 2015, the defendants were involved in possessing methamphetamine with intent to distribute it in Blaine County, Lincoln County, and Jerome County. Four of the drug transactions are alleged to have occurred within 1,000 feet of Hailey Elementary School in Hailey, Idaho, and four of the transactions are alleged to have occurred within 1,000 feet of Heritage Academy in Jerome, Idaho.
The penalties for the charges vary—depending on the facts for each charge—from not more than five years in prison, to not less than ten years mandatory minimum up to life. Distributing controlled substances within 1,000 of a school doubles the penalty for the amount of controlled substance distributed. The maximum fine for each of the charged offenses varies from $1,000,000 to $5,000,000. The number of years of supervised release following any incarceration for the charged offenses varies from three years to five years.
A trial is set for September 28, 2015, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case is being investigated by the Bureau of Alcohol, Tobacco, and Firearms, Idaho State Police, Blaine County Sheriff’s Office, Lincoln County Sheriff’s Office, Jerome County Sheriff’s Office, Twin Falls Police Department, and Hailey Police Department.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Senior Project Manager and Subcontractor Convicted for Conspiring to Defraud Matrix Service CompanyRead the Press Release
OAKLAND – Yesterday, Kevin Laney, a former Senior Project Manager at Matrix Service Company, and Brian Federico, a former subcontractor of Matrix, were convicted of mail fraud conspiracy and mail fraud, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson. The guilty verdicts followed a three-week bench trial in front of The Honorable Yvonne Gonzalez Rogers, United States District Judge.
Evidence at trial showed that in 2010, Matrix, a company that constructs tanks and provides tank maintenance and repair services to petrochemical companies, discovered suspicious billing in its Suisun City, Calif. office. The suspicious billing involved concrete subcontractor Imperial Shotcrete, for whom Federico worked. Through additional investigation, Matrix and the FBI uncovered a complex fraudulent invoicing scheme involving bogus companies and downstream kickbacks through Imperial involving three Matrix project managers, including Laney. At the conclusion of its investigation, Matrix immediately reimbursed its customers over $1.3 million.
Prior to trial, the two remaining Matrix project managers and one owner of Imperial pleaded guilty for their roles in the scheme.
For Laney’s part, the trial evidence showed he established a bogus company called “Rogue Consultants” to submit false and fraudulent invoices to Imperial in order to collect and conceal later downstream kickback payments. Laney invoiced and was paid just over $1 million related to Matrix projects. From this money, Laney paid Federico just under $600,000, keeping the rest of the money for his own benefit. For his part, Federico created and submitted false and fraudulent invoices using inauthentic invoices from a real company and invoices from his company, CEMS. Federico also directed two Matrix project managers to submit false and fraudulent invoices and pocketed a total of $875,000 as a result of the scheme. In the scheme, the Matrix project managers receiving the downstream kickback payments were often the project managers responsible for authorizing Matrix to pay the Imperial invoices. Matrix’s project managers and its subcontractors were expressly forbidden by Matrix from engaging in this type of self-dealing.
In addressing the defendants’ “elaborate scheme,” the court rejected their contention that the law sanctions “under-the-table side deals, vigilante justice, and corporate facades created for the sole purpose of facilitating self-gain at the expense of one’s employer.” The court, however, acquitted Federico of two substantive counts of mail fraud.
Laney, of Three Forks, Mont., and Federico, of Tracy, Calif., were charged by Indictment on December 6, 2012. Laney and Federico have remained on bond pending trial, but were both ordered to surrender their passports.
Laney’s and Federico’s sentencing hearings are scheduled for November 13, 2015, before Judge Gonzalez Rogers in Oakland. The maximum statutory penalties for a violation of 18 U.S.C. §§ 1341 and 1349 are a maximum prison term of 20 years, a fine of $250,000, 3 years of supervised release, and restitution. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Brian C. Lewis and Wade M. Rhyne prosecuted this case with the assistance of Legal Assistant Janice Pagsanjan and Paralegal Noble Hughes. This prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Owner of ‘Readings by Catherine’ IndictedRead the Press Release
CHARLOTTESVILLE, VIRGINIA – The former owner of “Readings by Catherine,” a business in Charlottesville that offered palm readings, candles readings, tarot card readings, and other services, has been indicted by a federal grand jury sitting in the United States District Court for the Western District of Virginia in Charlottesville.
Sandra Marks, 40, of Charlottesville, Virginia, a.k.a. “Catherine Marks,” was charged in a sealed indictment returned April 22, 2015 in U.S. District Court in Charlottesville. That indictment was unsealed yesterday morning following the defendant’s arrest and initial court appearance in U.S. District Court for the Eastern District of New York. Marks was temporarily detained pending a bond hearing July 24, 2015 at 3 p.m.
The grand jury has charged Marks with 31 counts of wire fraud, two counts of mail fraud and one count of money laundering.
According to the indictment, Marks operated a business that offered palm readings, candle readings, tarot card readings, astrological readings and spiritual readings. The defendant offered walk-in services to customers, some of whom suffered from emotional distress and mental disorders, had recently gone through personal traumatic events in their lives, and/or who were emotionally vulnerable, fragile and/or gullible.
The indictment alleges that Marks unjustly enriched herself, and others, by obtaining money, jewelry and other things of value from her customers and clients of “Readings by Catherine” based upon false pretenses, representations, promises and omission of material facts. Marks claimed she was clairvoyant and able to see into the past and the future. She told clients she had a “gift from God” and was able to communicate with spirits and guides from God, including the “Prince of Illusion,” who would relay information to her about clients.
Marks, according to the indictment, would tell clients that she had learned from the spirits and guides that the client, and/or the client’s family, was suffering from a “curse” and a “dark cloud” that occurred in the past. The defendant would tell clients they would have to make a “sacrifice” of large amounts of money and valuables since “money was the root of all evil.” Marks told clients she preferred cash and explained that the money or valuables would be buried in a box or otherwise hidden away and “cleansed” through prayer, rituals and meditation.
The indictment states that Marks told her clients that she could not and would not use the money and valuables furnished as “sacrifices” for her own personal benefit. Once cleansed, she assured her clients that the money and valuables would be returned to them. Contrary to those assurances, Marks, according to the indictment, kept and used the money and valuables provided by her clients for her and her family’s own personal use and economic benefit. In a few instances, Marks returned some money upon threat of legal action.
The investigation of the case was conducted by the Department of Homeland Security Investigations, the United States Postal Inspection Service, the United States Secret Service, the Virginia Attorney General’s Office and the Albemarle County Police Department. Special Assistant United States Attorney Elliot Casey will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Florida Man Sentenced for Trafficking in over $4 Million of Contraband CigarettesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Florida man has been sentenced in federal court for his role in a multi-million dollar, multi-state conspiracy to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they were sold primarily on Indian reservations.
Gholamreza “Reza” Tadaiyon, 51, of Weston, Fla., was sentenced by U.S. District Judge Fernando J. Gaitan on Thursday, July 23, 2015, to five years of probation and ordered to forfeit $1,046,320 to the government, representing the profit from the sale of contraband cigarettes. Tadaiyon has forfeited to the government $448,189 that was seized primarily from his bank accounts.
On Feb. 18, 2015, Tadaiyon pleaded guilty to participating in a conspiracy to commit wire fraud and contraband cigarette trafficking from July 1, 2011 to Jan. 28, 2012. Tadaiyon, who owned Brand Name Connoisseurs, Corp., in Florida, purchased those cigarettes from co-defendant Craig Sheffler, 45, of Independence, through his business, Cheap Tobacco Wholesale.
Tadaiyon admitted that he and Sheffler made regular purchases of contraband cigarettes from undercover agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Kansas City, Mo. They coordinated the cigarette orders from vendors in New York and assisted in transporting the contraband cigarettes. Tadaiyon received approximately $1,046,320 in gross profit on these transactions.
Sheffler pleaded guilty to his role in the conspiracy and awaits sentencing. Conspirators purchased more than $17 million worth of contraband cigarettes from ATF agents during the undercover operation. Approximately 620,600 cartons of cigarettes – containing 10 packs per carton – were transported to New York without paying the required $4.35 per pack excise tax. The untaxed cigarettes were sold by New York retailers and smoke shops on the reservations in the state of New York. The benefit to those smoke shops was that they did not pay New York state cigarette taxes; thus, they could undercut the prices charged by off-reservation cigarette retailers by over $40 per carton.
The total state excise tax lost to the state of New York was more than $8 million.
This case was prosecuted by Assistant U.S. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Kansas City, Mo., Police Department and FDIC-Office of Inspector General.
Five Charged in Heroin Overdose Deaths of Three Pittsburgh-area ResidentsRead the Press Release
PITTSBURGH – Several area men have been charged with distribution of heroin resulting in an overdose death, United States Attorney David J. Hickton announced today. The five men are named in three separate indictments, returned on July 21 and unsealed a day later, relating to the January 2015 fatal overdoses of two men and one woman. Court documents do not list the names of the deceased.
“The federal charge – distributing heroin that causes death – is not one we bring often or lightly,” stated U.S. Attorney Hickton. “However, it is the policy of this office that if we can establish that a seller of heroin caused a death, we are going to charge it. This heroin crisis requires that response.”
One indictment charges Richard Toland, 56, Edward Skrine, 58, and Anthony McCullough, 54, all of Pittsburgh, Penn., with conspiring to distribute and distributing heroin resulting in serious bodily injury and death on Jan. 25, 2015, as well as with distributing heroin on other occasions. The indictment also charges Toland with possession of a firearm in furtherance of a drug trafficking crime and with possession of a firearm by a convicted felon between January 2015 and Feb. 27, 2015. The indictment lists Toland’s six prior convictions for drug trafficking crimes as well as a prior conviction for aggravated assault. The law provides for a maximum total sentence of at least 20 years and up to life in prison.
Another indictment charges Antonio Rutherford, 26, of Pittsburgh, Penn., with possession with intent to distribute and distribution of heroin resulting in serious bodily injury and death; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon – all from January 2015 to Feb. 9, 2015. The law provides for a maximum total sentence of at least 25 years and up to life in prison and a fine of up to $1,500,000.
The last indictment charges Andrew Micheli, 22 of Bridgeville, Penn., with possession with intent to distribute and distribution of heroin on or about Jan. 15, 2015. The indictment also charges that the distribution resulted in the serious bodily injury and death of a user of the heroin. The law provides for a maximum total sentence of at least 20 years and up to life in prison and a fine of up to $1,000,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant(s).
Assistant United States Attorney Craig W. Haller is prosecuting these cases on behalf of the United States.
The Drug Enforcement Administration, the Pittsburgh Bureau of Police, the Allegheny County Sheriff’s Office, the Scott Township Police Department and the Allegheny County Medical Examiner’s Office conducted the investigations leading to the indictments in these cases.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Feds seeking fugitives in block burner investigationRead the Press Release
Indianapolis—Federal law enforcement is still seeking the whereabouts of two federal fugitives who escaped capture from this week’s massive operation to arrest members of the Block Burner gang which operated on the East side of Indianapolis. William Edward Dodd, 32, and Eskivel Reynosa De La Cruz, 28, were last seen in Indianapolis on July 21, 2015, and are considered armed federal fugitives.
According to a federal criminal complaint filed on July 22, 2015, Dodd received five to ten kilograms of cocaine on multiple occasions from Dominican Republic sources of supply identified as Eskivel Reynosa De La Cruz and Gerardo Garcia. Law enforcement is still seeking to locate and arrest Dodd and De La Cruz.
When Dodd’s stash house located at 2566 S. Keystone Avenue was searched, agents recovered approximately $80,000 in cash and multiple packages of cocaine ready for resale. When Dodd’s residence was searched, agents found a loaded firearm and approximately $10,000 in cash.
United States Attorney Josh Minkler implored members of our community to come forward with any information that might lead to his arrest saying, “William Dodd is a is a threat to this and any other community he might be in. I am asking anyone who knows where he might be to call the FBI (317-595-4000), Crime Stoppers of Central Indiana (317-262-TIPS) or your local police department.”
A photo of Dodd and the criminal complaint detailing his criminal activity are attached to this release. No photo of De La Cruz is available. Dodd Wanted Poster (225.77 KB)
Dominican National Charged with Conspiracy and Aggravated Identity FraudRead the Press Release
BOSTON - A Dominican national was charged in District Court in Springfield yesterday with conspiracy and aggravated identity fraud.
Sandro Tavera Mora, 45, formerly of Springfield, was charged in a superseding indictment with one count of conspiracy to possess and transfer fraudulent identification documents and one count of aggravated identity theft, in addition to the charges in the original indictment: one count of false personation of a U.S. Citizen and one count of fraud and misuse of visas. Tavera Mora was initially charged in March.
As alleged in the superseding indictment, Tavera Mora falsely and willfully represented himself to be a citizen of the United States. It is also alleged that he possessed an altered United States non-immigrant visa and numerous identification documents not belonging to him. Tavera Mora is alleged to have obtained numerous false Puerto Rican identification documents to commit identity fraud and misuse of a visa. It is alleged that between April and June 2014, he engaged in a conspiracy to distribute false identification documents to others.
The maximum sentence for false personation of a U.S. Citizen is three years in prison to be followed by one year of supervised release and a $250,000 fine. The maximum sentence for theft and misuse of a visa is five years in prison to be followed by three years of supervised release and a $250,000 fine. The maximum sentence for conspiracy count is 15 years in prison to be followed by five years of supervised release and a $250,000 fine. If convicted of identity theft, Tavera Mora faces a mandatory sentence of two years in prison consecutive to any other sentence he receives. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Michael Shea, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Kevin O’Regan, Chief of Ortiz’s Springfield branch office and Marianne Shelvey, Trial Attorney with the United States Department of Justice, Criminal Division, Organized Crime and Gang Section.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dismissal of Conspiracy Count to Commit Tax Evasion by Kimberly Hastie and John Hastie, Jr.Read the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that the United States has moved to dismiss Count 18 of the superseding indictment against Kimberly Hastie and John Hastie, Jr., in criminal case number 14-00291-KD-N relating to conspiracy to commit tax evasion.
United States Attorney Kenyen Brown said, "The great bulk of the charges against Ms. Hastie involved allegations of public corruption. With the exception of one public corruption charge, a jury consisting of Ms. Hastie’s peers returned a not guilty verdict in her favor. Given this result, a further pursuit of the ancillary charge of conspiracy to commit tax evasion against Kimberly Hastie and John Hastie, Jr., is not in the best interest of justice at this time."
Defendant Sentenced to 2 Years for ID TheftRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Rosendo Landeros-Galvan, 37, of Robertsdale, Alabama was sentenced on July 22 by Chief U.S. District Judge William H. Steele to 24 months imprisonment for aggravated identity theft. The judge ordered that Landeros-Galvan, an illegal alien from Mexico, undergo 1 year of supervised release upon completing his term of imprisonment, that he receive deportation consideration, drug abuse testing and substance abuse treatment, and that he pay a $100 mandatory special assessment. Landeros-Galvan was arrested in April 2014 by the Robertsdale Police Department for a narcotics violation. During his arrest, he purported himself to be another person. Landeros-Galvan was indicted by a federal grand jury in June 2014 for unlawful use of a Social Security number. Law enforcement officials arrested Landeros-Galvan, a federal fugitive, in South Carolina in January 2015, when he again concealed his true identity from arresting agents. Landeros-Galvan pled guilty to aggravated identity theft in April 2015.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Sinan Kalayoglu.
Dallas Man Sentenced to 188 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — A Dallas man, Jose de Jesus Galicia-Fuentes, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 188 months in federal prison, following his guilty plea in September 2014 to one count of receipt of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Galicia-Fuentes, 58, was arrested in July 2014 on a related federal criminal complaint; he has been in custody since that time.
According to documents filed in the case, an investigation into the sharing of child pornography files using peer-to-peer networks revealed that a user at a particular IP address, later determined to belong to Galicia-Fuentes, was sharing files indicative of child pornography. The investigation also revealed that as of July 2, 2014, Galicia-Fuentes had 125 files of investigative interest, that is, files with identified child victims or files containing images previously identified as child pornography by law enforcement, available to share.
When law enforcement executed a federal search warrant at his residence on July 9, 2014, they seized a computer containing videos of prepubescent minors engaged in sexually explicit activity. Galicia-Fuentes admitted that he had been viewing child pornography for more than three years, estimating that he has downloaded 100 videos of child pornography. He further admitted he received and possessed videos that included bondage and sadistic acts involving minors and the majority of his child pornography video collection was of prepubescent children.
The matter was 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.”
The FBI’s Dallas Child Exploitation Task Force and the Dallas Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
# # #
Dallas County Woman Admits Defrauding MedicaidRead the Press Release
DALLAS – Brenda Ward, 47, of Cedar Hill, Texas, appeared in federal court this morning before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to one count of health care fraud, announced John Parker, U.S. Attorney for the Northern District of Texas.
Ward, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Sentencing is set for November 6, 2015, before Judge Fitzwater.
According to documents filed in the case, Ward, who was President and CEO of H.E.L.P.-Ing. Communities, Inc. (HCI), obtained a Medicaid group number for HCI and used that number, together with individual Medicaid provider numbers of licensed counselors and Medicaid recipient information, to submit fraudulent claims to Medicaid.
Ward, who is neither a psychotherapist nor a mental health provider, submitted claims for individual, family, and group psychotherapy sessions that were not performed. As part of her fraud scheme, Ward used the Medicaid provider numbers of four licensed counselors, without their knowledge and consent, to submit claims under the HCI group number for services that they did not perform. Ward also used the Medicaid provider information of a fifth licensed counselor who worked for her to submit claims for psychotherapy services that both predated and postdated the counselor’s actual employment with her, as well as claims for services that the counselor did not provide during the counselor’s employment. Ward used the identification of more than 290 Medicaid recipients, most of whom were minor children, in her scheme.
Ward admits that from January 1, 2009, through February 9, 2015, she personally submitted fraudulent claims to Medicaid and to Medicaid Managed Care Organizations, through HCI, totaling approximately $1,639,923.00; Ward was paid approximately $887,809.64 for these claims.
The FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit investigated. Assistant U.S. Attorney Douglas Brasher is prosecuting.
# # #
Clermont Man Sentenced to More Than 16 Years for Transporting Child Pornography over the InternetRead the Press Release
Orlando, Florida – Chief United States District Judge Anne C. Conway yesterday sentenced Aaron Michael Murray (23, Clermont) to 16 years and 8 months in federal prison for transporting child pornography over the Internet. He was also ordered to serve a 20-year term of supervision, and to register as a sex offender following his release from prison. Murray pleaded guilty on May 15, 2015.
According to court documents, police officers in Texas executed a search warrant at a residence and discovered child pornography on a computer used by a minor child. Further investigation revealed that the child had received images of child pornography from an individual using a computer located at a residence in Clermont, Florida. The individual, subsequently identified as Murray, had portrayed himself to be a minor child during online conversations with the Texas minor.
A search warrant was executed at Murray’s residence, where his laptop computer and iPod Touch device were seized and analyzed by the FBI. The email account Murray had used to send out the child pornography was located on the iPod. Online chat messages that Murray had sent using the fake persona of a minor child were also recovered, along with at least 250 images and videos depicting child pornography that Murray had obtained using the Internet. Murray’s laptop computer contained at least 73 images and videos depicting child pornography, many of which Murray had organized and sorted into folders. Evidence obtained from his email account showed that Murray had sent at least 246 images of child pornography to other users over the Internet, including many that depicted prepubescent boys engaged in sexual intercourse.
This case was investigated by the Florida Department of Law Enforcement, the Lake County Sheriff’s Office, the Federal Bureau of Investigation in Ocala and Jacksonville, the Dallas (Texas) Police Department, and the Carrollton (Texas) Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Clay County Man Sentenced in Federal Court on Methamphetamine ChargesRead the Press Release
A Clay County man 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, Richard H. Barber, 49, of Louisville, Illinois, was sentenced to 151 months in federal prison, three years’ supervised release following his imprisonment, and fined $400. Barber had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that from June 2014, until on or about October 28, 2014, in Clay County, and elsewhere within the Southern District of Illinois, Barber conspired with others known and unknown to the Grand Jury, to manufacture a mixture and substance containing methamphetamine. Count 2 charged that on October 28, 2014, in Clay County, Barber possessed equipment, chemicals, products, or materials which can be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force. The Clay County State’s Attorney’s Office also assisted in the investigation.
The case is being handled by Assistant United States Attorney George Norwood.
City Woman Sentenced to Serve Five Years Probation and Pay over $35,000 in Restitution for Social Security FraudRead the Press Release
Oklahoma City, Oklahoma –DELANE HENDERSON, 52, of Oklahoma City, was sentenced by United States District Judge Robin Cauthron to serve five years of probation for making a materially false and fraudulent representation to the Social Security Administration (“SSA”), announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. As part of her sentence, Henderson was also ordered to pay $35,240.00 in restitution. According to court documents, Henderson falsely represented that she was a deceased social security beneficiary, and used the beneficiary’s social security number and other identifiers to obtain funds from the SSA. Reference is made to court filings for further information.
This case was the result of an investigation conducted by the Social Security Administration Office of the Inspector General and was prosecuted by Assistant U.S. Attorney Julia E. Barry
Cedar Rapids Felon Sent to Prison for 100 Months for Possessing Firearms and AmmunitionRead the Press Release
A convicted felon who possessed a firearm and ammunition in Cedar Rapids earlier this year was sentenced yesterday to 100 months in federal prison.
Michael Ray Davis, age 26, from Cedar Rapids, Iowa, received the prison term after his April 24, 2015, guilty pleas to three federal firearms crimes. The crimes included Possession of a Firearm and Ammunition by a Felon; Unlawful Possession of a National Firearms Act Firearm; and Possession of a Firearm by a Felon.
At the guilty plea hearing, Davis admitted that he knowingly possessed a Beretta .40 caliber handgun and Winchester .40 caliber ammunition on January 4, 2015. Davis also admitted he knowingly possessed a modified Fabarm 12-gauge pump weapon on February 5, 2015, and such weapon was not registered to him in the National Firearms Registration and Transfer Record. Davis also admitted to a prior felony conviction in state court for criminal mischief in the second degree.
Davis was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 100 months’ imprisonment. A special assessment of $300 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Davis is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the FBI’s Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Cedar Rapids Police Department. Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-0019.
Follow us on Twitter @USAO_NDIA.
California Woman Sentenced in Montana to More Than Four Years in Prison in Connection with Bank FraudRead the Press Release
HELENA – A federal judge this week sentenced Erika Rae Brown, 44, of San Diego, California, to 56 months in prison and to pay approximately $3.7 million dollars in restitution for money laundering in connection with bank fraud. U.S. District Court Judge Sam Haddon also sentenced Brown to serve three years of supervised release following her prison sentence. The sentencing follows a March 19, 2015, change of plea in which Brown pleaded guilty to money laundering.
The offense involved Erika Rae Brown obtaining a four-million dollar bank loan based on a series of fraudulent representations about a data storage facility project she claimed she was working on located on a property in Darby, Montana. In January 2009, the bank forwarded the data company’s loan application to the United States Department of Agriculture (USDA). Following representations by one of Brown’s associates regarding the project, the USDA committed to guarantee the loan. As part of the parameters for the loan, the bank required Brown to provide proof that companies were interested in using the data storage facility. Brown submitted letters to the bank from several well-known national companies that purportedly wanted to use the data storage. Subpoena returns from those companies later indicated that the letters were not, in fact, authored by the companies. Also, prior to the bank loan’s closing date, Brown provided the bank with a number of cashier’s checks and invoices in an effort to show that the company was in fact spending capital on the project. In reality, the checks were altered version of checks Brown had written for other expenses.
Brown assured the bank and USDA employees that her grandfather was able fund the project. It was later discovered that the loan disbursements were not used for the business projects and, in fact, a bathroom and office renovation represented the only work done on the project. Interviews of companies allegedly involved in working on the project confirmed that they had not done any work on it. Brown had submitted fabricated invoices to the bank. The loan defaulted in or about October 2011. A bank executive visited to the property in September 2012, which revealed that there were no improvements other than the bathroom and office space. A financial analysis of the loan proceeds revealed that Brown used the money for personal expenses, including $128,135 in rent for a Laguna Beach house and $5,825 for two Rolex watches. The bank foreclosed on the property in August 2013. The $3,741,047.82 in restitution ordered by the court represents the money Brown owes to the bank and the USDA.
Assistant U.S. Attorney Chad C. Spraker prosecuted the case, which was investigated by the Federal Bureau of Investigation, Internal Revenue Service, and the U.S. Department of Agriculture, Office of Inspector General. Brown will have to serve at least 85% of her sentence before being released from federal prison.
Bossier City woman pleads guilty to stealing more than $90,000 in VA benefitsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City woman pleaded guilty to taking more than $90,000 paid to her deceased mother.
Gloria Lynn Perry, 65, of Bossier City, La., pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of theft of government property. According to evidence presented at the guilty plea, Perry stole $90,006 of her mother’s Veteran’s Affairs Dependency and Indemnity Compensation benefits from April 1, 2008 until July 1, 2014. Her mother died in 2008. In addition, Perry filed for Chapter 13 bankruptcy in 2014, but she did not report the existence of the bank account where her mother’s benefits were deposited nor the income she received as a result.
Perry faces up to 10 years in prison, three years of supervised release, a $250,000 fine and restitution. A sentencing date of November 12, 2015 was set.
The Veterans Affairs, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan is prosecuting the case.
Board Certified Obstetrician and Gynecologist Agrees to Civil Fraud Settlement in Conjunction with Deferred Prosecution in Medicare and Medicaid Fraud InvestigationRead the Press Release
The United States and New York State have entered into a civil settlement agreement with Haroutyoun Margossian, a Board Certified Obstetrician and Gynecologist (OB/GYN). Margossian maintains an OB/GYN subspecialty in urogynecology and is the sole practitioner at NY Urogynecology & Reconstructive Pelvic Surgery, P.C. with a main office located in Brooklyn. The agreement resolves an investigation under the federal False Claims Act and the New York False Claims Act involving allegations that, in contravention of Medicare and Medicaid regulations, Margossian utilized an unlicensed and often unsupervised staff to treat women suffering from urinary incontinence. Under the terms of the civil settlement agreement, Margossian will pay a total of $8,047,291.06. Contemporaneously with the execution of the civil settlement agreement, the government filed a criminal charge against Margossian for making false statements to Medicare and entered into a deferred prosecution agreement with him.
The civil settlement agreement, criminal charge, and deferred prosecution agreement were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Scott J. Lampert, Special Agent-in-Charge, Health and Human Services, Office of Inspector General (HHS-OIG), New York Region, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
The government’s investigation revealed that between approximately January 1, 2007 and December 31, 2013, the primary focus of Margossian’s practice was the treatment of woman suffering from incontinence. Patients received urodynamics testing and underwent pelvic floor rehabilitation by an unlicensed staff without proper physician supervision. Margossian was often absent from the office while conducting surgery at area hospitals and, at times, on vacation out of the country. Medicare and Medicaid rules required that these procedures be performed by a licensed physician or licensed physical therapist, or a properly trained medical provider under the physician’s direct supervision. Furthermore, Margossian used improper billing codes to bill Medicare for the pelvic floor rehabilitation, which substantially increased Margossian’s Medicare reimbursement.
The deferred prosecution agreement requires Margossian to install an independent billing monitor of his practice. As part of the deferred prosecution agreement, Margossian is obligated to comply with the terms of the civil settlement agreement under which he is paying the government over $8 million. If Margossian abides by all of the terms of the deferred prosecution agreement for two years, the government will then seek dismissal of the charge.
“Those who jeopardize the health and safety of their patients, while at the same time knowingly submitting false claims to Medicare, Medicaid, and other government health care programs, will be pursued to the full extent of the law,” stated United States Attorney Currie. Mr. Currie thanked HHS-OIG, the FBI, and the New York Attorney General’s Medicaid Fraud Control Unit for their assistance in the investigation.
“It is distressing to learn that a physician would be so driven by profit that he allowed his unlicensed employees to conduct testing and provide treatment to patients when he was not present, and at times, when he was out of the country. HHS-OIG and our law enforcement partners will not tolerate this behavior, and we will remain vigilant in our efforts to protect patients’ welfare,” said HHS-OIG Special Agent-in-Charge Lampert.
“Health care fraud is ultimately a financial crime, which can lead to significant loss to both victims and government programs. Through successful engagement with our partners, the FBI is protecting potential victims and ensuring Medicare billing is utilized within the boundaries of the law,” said FBI Assistant Director-in-Charge Rodriguez.
The United States’ civil case was handled by Assistant U.S. Attorney Kenneth M. Abell, with assistance from Kaitlyn L. Dunn of the Office of Counsel to HHS-OIG. The criminal investigation was handled by U.S. Attorney Patricia E. Notopoulos. The state case was handled by Special Assistant Attorney General Jill D. Brenner.
The Defendant:
HAROUTYOUN MARGOSSIAN
Age: 55
Residence: Staten Island, NYAttorney Sentenced for $4 Million FraudRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Eric J. Beste (619) 546-6695
SAN DIEGO – Attorney Gino Paul Pietro appeared in two federal courthouses this week, where he was collectively sentenced to serve 30 months in prison for participating in separate fraud schemes in Orange and San Diego counties.
On July 20, 2015, U.S. District Judge Andrew Guilford in Santa Ana ordered Pietro to serve 24 months in custody for a sophisticated loan fraud scam that used a “straw buyer” to conceal his client’s receipt of over $4 million in commercial loans that were backed by the federal government.
And on July 24, 2015, Pietro was sentenced by U.S. District Judge Dana M. Sabraw in San Diego to serve 10 months in custody for defrauding six different defendants being held in pretrial detention (and their families) out of $3,000 each by falsely representing that his investigator was a licensed attorney who could “globally” resolve their criminal and immigration cases. Six months of that sentence are to be served consecutive to the Orange County sentence; four months concurrently.
In imposing additional custodial time on Pietro, Judge Sabraw told the defendant his conduct had brought “dishonor and disgrace to the entire legal profession.” And although his six victims had committed crimes by entering the country illegally, “they didn’t deserve this.”
Pietro was ordered to repay $18,000 in restitution to the victims of the San Diego fraud scheme, and is scheduled to appear in federal court in Santa Ana on October 26, 2015, to determine the amount of restitution he must pay to the victims of the loan fraud scheme.
Pietro was ordered to report to prison on November 27, 2015.
Pietro’s sentencing in federal court in Santa Ana concerned his role in defrauding Hana Bank out of two commercial loans that his client – Donald Goff – used to purchase lucrative gas stations in Anza and Imperial, California. In order to facilitate these transactions and conceal Goff’s involvement, defendant Pietro created two shell companies (Rock Petroleum, Inc. and the Golden Oso Group, Inc.) and made it appear that a “straw buyer” was actually going to purchase the properties for over $6 million – using a $2.1 million down payment and $4.5 million in loans from Hana. In truth, however, the purchase price was closer to $3.45 million, and the “down payment” was a total fabrication. And to secure favorable lending terms, the schemers fraudulently obtained guarantees from the U.S. Small Business Administration (“SBA”).
Soon after the fraudulent loan scheme was underway, Goff, his wife and stepdaughter were indicted in the Central District of California for executing similar loan fraud schemes. Instead of backing out of the Hana Bank scam, Pietro appeared in federal district court in Santa Ana and represented Goff in the criminal case – at the same time he was working with Goff to defraud Hana Bank. On December 7, 2012, the loans with Hana Bank closed, and over half a million dollars was diverted from these loan proceeds to pay the schemers – including $250,000 to defendant Pietro. The loans ultimately went into default, resulting in Hana Bank suffering the substantial losses that will ultimately be borne by the SBA and taxpayers.
Don Goff was sentenced to 78 months in prison. His wife, Melanie Goff, was sentenced to eight months custody; stepdaughter Monty Brown was sentenced to 18 months custody.
The following year, after withdrawing from representing Goff in the criminal case, Pietro embarked on a second fraud scheme that targeted defendants held in federal custody on immigration charges in San Diego. To obtain access to federal detainees facing criminal charges, Pietro arranged for an investigator to falsely represent to authorities that he was a licensed attorney. The investigator used this fraudulent access to falsely claim to detainees that he and Pietro could “globally” resolve their criminal and immigration charges within a matter a matter of months if they retained them for between $6,000 and $10,000. Between September 2013 and January 2014, Pietro and the investigator fraudulently induced six detainees and their family members to wire transfer $3,000 each to Pietro’s client trust account. Pietro then appeared in federal court for these defendants, replacing their court-appointed counsel. In the end, of course, Pietro was unable to execute a favorable “global” resolution of the criminal and immigration charges. Soon after pleading guilty in Santa Ana for his role in the Hana Bank scam, Pietro withdrew from representing these San Diego clients.
“Because members of the bar are given special privileges, they are rightly held to a strict standard of honesty and fair dealing,” said U.S. Attorney Laura E. Duffy. “Unfortunately, Pietro placed his own financial interests ahead of his obligations to his clients, to banks, and to the courts. Attorneys who engage in fraudulent conduct should not be surprised to find themselves in federal court – but this time, as defendants.”
Because the United States Attorney for the Central District of California was recused from the prosecution of Pietro, the United States Attorney for the Southern District of California handled both of these prosecutions.
“Today’s sentence reflects the serious nature of the defendant’s breach of public trust through his fraud schemes,” said David L. Bowdich, Assistant Director in Charge of the FBI Los Angeles Field Office. “Mr. Pietro was entrusted to uphold the law but instead, gave in to greed and broke the law, while enabling others to do the same. This sentence should serve as a deterrent for anyone contemplating similar criminal activity.”
“Pietro’s sentence is a reminder that those who defraud the government will be brought to justice and held accountable for their actions,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “Lies by individuals that are afforded a degree of trust by virtue of their professions are particularly egregious. I want to thank the U.S. Attorney's Office for its dedicated leadership and professionalism in pursuit of justice in this case.”
DEFENDANT
Gino Paul Pietro Age: 54 Newport Beach, CASUMMARY OF CHARGES
Case No. SA CR 14CR0019-AG (C.D.C.A.)
Wire Fraud – Title 18, U.S.C., Section 1343Maximum penalty: Twenty years in prison; $250,000 fine, or twice the gross gain or loss caused by the offense; mandatory restitution; $100 special assessment.
Case No. 14CR1623-DMS (S.D.C.A.)
Wire Fraud – Title 18, U.S.C., Section 1343Maximum penalty: Twenty years in prison; $250,000 fine, or twice the gross gain or loss caused by the offense; mandatory restitution; $100 special assessment.
AGENCIES
U.S. Small Business Administration, Office of Inspector General
Federal Bureau of InvestigationAssistant U. S. Attorney Promoted to Strike Force SupervisorRead the Press Release
FARGO - Acting U. S. Attorney Christopher C. Myers announced that Assistant U. S. Attorney Rick Volk has been promoted to supervisor of the Bakken Strike Force. His role will include the supervision of the Strike Force prosecutors, as well as leading the Bakken Strike Force and its response to organized crime in the Bakken.
Rick joined the USAO in June 2002 after prosecuting cases for over nine years at the Burleigh County State’s Attorney Office in Bismarck. He is a 1988 graduate of Valley City State University and a 1991 graduate from the UND School of Law. Rick has primarily been assigned to prosecute violent crime occurring in Indian country and also served as the point of contact for both the Standing Rock Indian Reservation and the Fort Berthold Indian Reservation.
Acting U.S. Attorney Chris Myers remarked: "Rick is an experienced and skilled trial lawyer and is a leader in law enforcement. He is the perfect choice to lead the Strike Force and our collective response to organized crime in the Bakken at a critical time in the history of Western North Dakota – Rick and his team will make a difference."
Animal Rights Activists Accused of Going on Cross-Country SpreeRead the Press Release
For Further Information, Contact: Assistant U.S. Attorneys
John Parmley (619) 546-7957 or Michael Kaplan (619) 546-7927SAN DIEGO – Animal-rights activists Joseph Buddenberg and Nicole Kissane were arrested by the FBI today and charged with terrorizing the fur industry during cross-country road trips in which they released thousands of mink from farms around the country and vandalized various properties.
According to a federal grand jury indictment unsealed today, Buddenberg and Kissane caused hundreds of thousands of dollars in damage during the nationwide spree in the summer of 2013. The indictment alleges that the pair snuck onto farms and freed minks and destroyed breeding records in Idaho, Iowa, Minnesota, Wisconsin and Pennsylvania during multiple trips, and in one case they released a bobcat from a farm in Montana.
The defendants were charged under the Conspiracy to Violate the Animal Enterprise Terrorism Act. They were arrested in Oakland this morning by agents from the FBI’s San Francisco field office. The government will seek the removal of Buddenberg and Kissane to the Southern District of California to face charges.
In one instance described in the indictment, the defendants traveled from Oregon to San Diego in their 2012 Honda Fit on July 15, 2013 and used paint, paint stripper, a super glue-type substance, butyric acid, muriatic acid and glass etchant to vandalize Furs by Graf, a retail furrier located in San Diego, as well as the Spring Valley and La Mesa residences and personal property of the current and former owners of the business.
To publicize their crimes, the defendants drafted “communiqués” describing their conduct and posted them on websites associated with animal rights extremists, the indictment said.
Among some of the incidents of vandalism cited in the indictment: The defendants slashed tires of a meat distributor’s truck in San Francisco; smashed windows and glued the door locks at a furrier business in Minneapolis, Minnesota; vandalized and attempted to flood the Sun Prairie, Wisconsin home of an employee of the North American Fur Auctions.
According to the indictment, the unemployed defendants sold items on eBay and Amazon to finance their trips. To avoid detection by law enforcement, the defendants withdrew large sums of cash from their bank accounts immediately before setting off on a road trip. During the trips, they largely avoided the use of phones, used only cash for purchases and stopped logging in to known online accounts and email. Instead, they used public internet computers and encrypted email.
Once they returned from the trips, they resumed normal use of phones and computers and no longer relied solely on cash to make purchases.
“Whatever your feelings about the fur industry, there are legal ways to make your opinions known,” said U.S. Attorney Laura Duffy. “The conduct alleged here, sneaking around at night, stealing property and vandalizing homes and businesses with acid, glue, and chemicals, is a form of domestic terrorism and can’t be permitted to continue.”
“Today's indictment represents the collective efforts of several FBI Joint Terrorism Task Forces (JTTF) around the country,” said Eric S. Birnbaum, Special Agent in Charge of the FBI's San Diego Field Office. “The FBI and our JTTF partners will continue to investigate and seek the prosecution of those who engage in similar criminal conduct for the purpose of advancing their own personal agenda.”
Indictment Document (335.58 KB)
DEFENDANTS
Joseph Brian Buddenberg Age: 31 Oakland, CA
Nicole Juanita Kissane Age: 28 Oakland, CASUMMARY OF CHARGES
Conspiracy to Violate the Animal Enterprise Terrorism Act – Title 18, U.S.C., Section 43 (a) (1), (2) (c) and (b) (3) (A) Maximum penalty: Ten years in prison and $250,000 fineAGENCIES
Federal Bureau of Investigation, San Francisco and San Diego Field Offices
Joint Terrorism Task Force*The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty
23 July 2015
Yuma and Cochise Counties Have Accepted over $3 Million in Federal Grant Money Since 2010Read the Press Release
PHOENIX – Governor Ducey recently announced that $557,000 in additional funds would be made available to the sheriff’s offices in Yuma and Cochise Counties to assist with the cost of border law enforcement.
Law enforcement along the border is also a high priority of the U.S. Department of Justice (“DOJ”) and the U.S. Attorney’s Office for the District of Arizona. Since 2010, Yuma County was awarded over $3 million in grant money from the DOJ and Cochise County was awarded over $200,000 in such grant money. The four border counties in Arizona received additional law enforcement support in the form of millions of dollars in DOJ grants and other federal funding since 2010.
RELEASE NUMBER: 2015-055_AZ GRANTS
# # #
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.
Woman Sentenced for Role in 2001 Arson That Killed Her 15-year-old SonRead the Press Release
St. Louis, MO - SANDRA KAY BRYANT, St. Louis County, was sentenced today for her participation in setting fire to her family’s home in Florissant, Missouri, on November 16, 2001. Bryant’s 15-year-old son became trapped in the basement and was killed during the fire. Bryant pled guilty in March to one count of aiding and abetting the use of fire to commit mail fraud and unequivocally acknowledged and confirmed her participation in the arson scheme.
Bryant appeared today for sentencing before United States District Court Judge Audrey G. Fleissig. Judge Fleissig imposed a prison sentence of 96 months and awarded Bryant credit for the 50 months she spent in jail during the state-level prosecution.
The 2001 fire was originally the subject of state prosecution in which Sandra Bryant was charged with murder by arson. During the state trial, Bryant challenged her confession to detectives that detailed her involvement in the fire. The judge declared a mistrial after ruling that certain evidence relating to a polygraph examination indicating deception by Bryant had mistakenly been shown to the jury. The Missouri Supreme Court ultimately held that because the mistrial was declared over the defense objection, state prosecutors were barred from retrying the defendant in state court because of the United States Constitution’s “double jeopardy” provision.
Because the State was unable to proceed with its prosecution of Bryant, federal officials took over the investigation, and in October of 2011 a federal grand jury returned an indictment charging both Bryant and her ex-husband, Steven Kemper, for the 2001 arson. Steven Kemper pled guilty in 2013 and was sentenced to 70 months in prison.
Following Bryant’s sentencing this morning, U.S. Attorney Richard Callahan complimented the teamwork and persistence by the law enforcement agencies in staying the course on this long and difficult investigation and bringing both responsible parties to justice.
The investigation into this fire was initiated by the St. Louis County Police Department. The United States Bureau of Alcohol, Tobacco, Firearms and Explosives took up the investigation after the Missouri Supreme Court decision barring the retrial by state prosecutors. The Saint Louis County Prosecutor’s Office also provided significant assistance.
Wheatfield Man Charged with Possession of an Unregistered Destructive DeviceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Michael O’Neill, 45, of Wheatfield, NY, was charged by criminal complaint with possession of an unregistered destructive device. The charge carries a maximum penalty of 10 years in prison and a $10,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the complaint, on July 21, 2015, the Niagara County Sheriff’s Department responded to a call regarding an injury at 6761 Walmore Road in Wheatfield. When emergency crews arrived, they discovered the defendant had a significant injury to his lower leg. Subsequently, personnel from the Erie County Bomb Squad entered the unattached garage where an explosion had occurred.
Officers noticed what appeared to be an area where explosives were being manufactured and explosive powder and BB’s in plain view. The bomb squad discovered what appeared to be seven improvised explosive devices, one was labeled “Powder w/Nails.” Other items discovered included two pill bottles labeled as flash powder, a bag of potassium perchlorate, 36 shotgun shells reloaded with fragments inside, a plastic bottle of triple seven powder, a box of triple seven pellets and a plastic bottle labeled as triple seven powder.
A subsequent x-ray exam of the device labeled “Powder w/Nails” determined that nails were packed into the device. It was disassembled and found to contain multiple nails, BB’s and suspected flash powder. A check determined that O’Neill does not have any firearms or destructive devices registered under the National Firearms Act.
The complaint is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid and the Niagara County Sheriff’s Department, under the direction of Sheriff James Voutour.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Wheatfield Man Charged with Possession of an Unregistered Destructive DeviceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Michael O’Neill, 45, of Wheatfield, NY, was charged by criminal complaint with possession of an unregistered destructive device. The charge carries a maximum penalty of 10 years in prison and a $10,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the complaint, on July 21, 2015, the Niagara County Sheriff’s Department responded to a call regarding an injury at 6761 Walmore Road in Wheatfield. When emergency crews arrived, they discovered the defendant had a significant injury to his lower leg. Subsequently, personnel from the Erie County Bomb Squad entered the unattached garage where an explosion had occurred.
Officers noticed what appeared to be an area where explosives were being manufactured and explosive powder and BB’s in plain view. The bomb squad discovered what appeared to be seven improvised explosive devices, one was labeled “Powder w/Nails.” Other items discovered included two pill bottles labeled as flash powder, a bag of potassium perchlorate, 36 shotgun shells reloaded with fragments inside, a plastic bottle of triple seven powder, a box of triple seven pellets and a plastic bottle labeled as triple seven powder.
A subsequent x-ray exam of the device labeled “Powder w/Nails” determined that nails were packed into the device. It was disassembled and found to contain multiple nails, BB’s and suspected flash powder. A check determined that O’Neill does not have any firearms or destructive devices registered under the National Firearms Act.
The complaint is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid and the Niagara County Sheriff’s Department, under the direction of Sheriff James Voutour.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Webster City Woman Pleads Guilty to Social Security FraudRead the Press Release
A woman who committed Social Security Fraud for approximately five years pled guilty today in federal court in Sioux City.
Karlotta Venegas, 44, from Webster City, Iowa, was convicted of one count of Supplemental Security Income Benefits Fraud.
In a plea agreement, Venegas admitted that, between August 2008 and September 2013, she hid the fact that she had been outside the United States for more than thirty days on eight separate occasions from the Social Security Administration in order to continue to receive Supplemental Security Income benefits. Venegas admitted she failed to tell the Social Security Administration about these trips in order to continue to receive them. She would not have been entitled to benefits during the time she was outside the United States if the Social Security Administration knew she was outside the United States for over thirty days at a time. During this period of time, Venegas received over $23,000 in benefits to which she was not entitled.
Sentencing before United States District Court Judge Mark Bennett will be set after a presentence report is prepared. Venegas remains free on conditions of release previously set. Venegas faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Social Security Administration Office of the Inspector General.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-3018.
Follow us on Twitter @USAO_NDIA.
Two South Georgia Residents Plead Guilty to Dog Fighting and Firearms ChargesRead the Press Release
United States Attorney Michael J. Moore announced today that Raymond Lee Hendrix a/k/a “Georgia Lee” and “Lee”, of Echols County, Georgia; and Willie Henderson, of Lowndes County, Georgia, entered guilty pleas to a number of charges in United States District Court in Valdosta. The pleas were entered on June 25, 2015 before the Honorable Hugh Lawson, Senior District Court Judge.
Mr. Hendrix pled guilty to one count of conspiracy to travel in interstate commerce in aid of unlawful activities and to sponsor and exhibit a dog in an animal fighting venture. He faces a maximum sentence of five (5) years imprisonment, a maximum fine of $250,000.00, or both.
Mr. Henderson entered a plea of guilty to one count of conspiracy to travel in interstate commerce in aid of unlawful activities and to sponsor and exhibit a dog in an animal fighting venture and to one count of possession of a firearm by a convicted felon. His plea will subject him to a maximum sentence of five (5) years imprisonment, a maximum fine of $250,000.00, or both on the dog fighting charge and a maximum term of imprisonment of ten (10) years, a $250,000.00 fine, or both on the firearms charge.
In their plea agreements, Mr. Hendrix and Mr. Henderson admitted that between January 2008 and August 2013, they operated Clyattville Kennels, maintaining and training American Pit Bull Terriers for other dog fighters in exchange for a “tipping fee”, breeding and registering American Pit Bull Terriers and participating in organized dog fight gambling events throughout the Southeast. In addition, Mr. Henderson admitted to possessing a rifle and shotgun, after having been convicted of a felony. A copy of each plea agreement is attached.
Sheriff Randy Courson with the Echols County Sheriff’s Office stated, “This case has been years in the making with a lot of hard work and many man hours of agencies working together to eliminate the cruel and inhumane treatment of these animals for profit.”
The case resulted from an inter-agency investigation conducted by the Federal Bureau of Investigation, United States Department of Agriculture – Office of Inspector General, Echols County (Georgia) Sheriff’s Office, Auburn (Alabama) Police Department, Bainbridge (Georgia) Department of Public Safety, Alabama Alcoholic Beverage Control Board, Lee County (Georgia) Sheriff’s Office along with assistance from the Humane Society of the United States and the American Society for the Prevention of Cruelty to Animals. Assistant United States Attorney Julia C. Bowen is prosecuting the case for the government.
The Court set sentencing for Mr. Hendrix and Mr. Henderson for September 23, 2015 at 9:30 am in Valdosta.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office at (478) 621-2603.
Two Persons Sentenced for Organized Drug Conspiracy and DistributionRead the Press Release
Jason Crabtree, 40, of Centralia, Illinois, was sentenced on July 22, 2015 to a total of 60 months in prison on a four-count indictment charging him with Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine and Unlawful Distribution of Cocaine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. Following his prison sentence, Crabtree will be on federal supervised release for 5 years and was ordered to pay a fine of $500, as well as a $200 special assessment. An Order for forfeiture was entered in the amount of $75,000.
On July 22, 2015, co-defendant Cambryn M. Baker, 34, of Odin, Illinois, was also sentenced. Baker was sentenced to an 18 month split sentence (9 months in prison, 9 months on home confinement) for her part in the indictment charging her with Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine, and Conspiracy to Launder Monetary Instruments and Concealing or Disguising the Nature, Source, Location, Ownership or Control of the Proceeds of Specified Unlawful Activity. Following her split sentence, Baker will be on federal supervised release for 2 years and 3 months and was ordered to pay a $400 fine and $200 special assessment.
Between approximately January 2010 and January 2013, Crabtree, Baker, and others were involved in an organization which engaged in a conspiracy to distribute and possess with the intent to distribute cocaine.
This case was investigated by the Drug Enforcement Administration, MEGSI and Illinois State Police and prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Two Miami-Dade County Residents Pled Guilty in Identity Theft Tax Fraud Scheme Involving Deceased and Other Individuals’ Personal Identifying InformationRead the Press Release
Two Miami-Dade County residents pled guilty for their participation in an identity theft tax fraud scheme using deceased and other individuals’ personal identifying information (PII).
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), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Joshua Chikudo, 40, and Curtis Joseph, a/k/a “CJ,” 36, both of Miami-Dade, each pled guilty to one count of wire fraud conspiracy, in violation of Title 18, United States Code, Section 1349. Chikudo also pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Joseph met with an IRS confidential informant (CI) and discussed a scheme to cash tax refund checks involving PII stolen from a medical clinic. The CI introduced Joseph to an undercover IRS agent. During three separate meetings, Joseph gave the undercover agent a total of thirteen tax refund checks for the undercover agent to cash. In exchange, the undercover agent gave Joseph approximately sixty-five percent (65%) of the check amounts as payment for his participation in the illicit scheme.
Court documents also state that at another meeting, the undercover agent provided Joseph with five IRS-controlled identities, consisting of fictitious PII - names, social security numbers, and dates of birth - to be used by a tax preparer in order to file fraudulent federal tax returns. During a separate meeting, the undercover agent gave Chikudo seven additional IRS-controlled identities that Chikudo intended to include in fraudulent tax return filings. Chikudo asked the undercover agent if he could obtain a business bank account for the purpose of depositing the fraudulent tax refunds into that account to avoid detection. The defendants, undercover agent, and another undercover partner agreed to split all of the tax refunds equally amongst themselves. The undercover agent provided Chikudo with IRS-controlled bank account information to be included on the fraudulent tax returns. The defendants caused six fraudulent federal income tax returns to be filed. The filings designated the IRS-controlled bank account as the intended recipient of the fraudulent refunds.
Furthermore, court documents state that between April and August of 2013, the defendants filed thirty-two fraudulent federal income tax returns using the twelve IRS-controlled identities, to request refunds totaling $197,688. Twenty-one of the returns were joint returns that included the PII of deceased individuals.
The defendants each face a maximum of twenty years in prison for the conspiracy charge. Chikudo is also facing and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and NMBPD. This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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.
Three Plead Guilty in Green Dot Scam Run by Alabama DOC InmatesRead the Press Release
Montgomery, Alabama – Pamela Lee, age 48, of Madison, Alabama, Michael Shane Garrison, age 26, and Marlon Ramon Coston, age 21, pleaded guilty in federal on Tuesday for their roles in a in a scheme to defraud businesses throughout the United States, announced George L. Beck Jr., U.S. Attorney for the Middle District of Alabama. Both Garrison and Coston are inmates in the Alabama Department of Corrections
Court documents indicated that between 2012 and 2014, Lee, Garrison, and Coston, ran a wide-ranging wire fraud scheme in which they used prepaid Green Dot and AccountNow cards to defraud multiple businesses, primarily service stations and convenience stores. Garrison and Coston carried out this scheme while they were incarcerated at the Bullock Correctional Facility, using cell phones that had been smuggled into the prison.
The scheme typically consisted of either Garrison or Coston using the cell phones to call a store and pose as a manager. The two would instruct the clerk to do a cash-count of the register at which time they would inform the clerk that there was a discrepancy with the register’s balance. They would then have the clerk make up for the discrepancy by purchasing a Green Dot prepaid cash or debit card with cash from the register and provide the account numbers over the phone to the “manager.”
Once the account numbers had been obtained by Garrison and Coston, they would then call Lee and have her transfer the funds to another card prior to the fraudulent card being frozen by Green Dot. Lee kept a portion of the transferred funds and maintained multiple alternate prepaid cards for Garrison and Coston at her residence in Madison County, Alabama. Lee provided the account numbers for the alternate cards to Garrison and Coston, who used them to purchase contraband from correctional officers employed at Bullock Correctional Facility.
On Tuesday, Lee, Garrison, and Coston each entered guilty pleas to a single count of wire fraud for carrying out this scheme in October of 2014, through a series of telephone calls to a Shell Station located in Gardendale, Alabama. The three will be sentenced in a separate proceeding where they will face a maximum penalty of twenty years in prison. A date for that hearing has not yet been scheduled.
The investigation of this case was initiated by the Gardendale Police Department and was a joint effort with the Federal Bureau of Investigation, the Alabama Law Enforcement Agency, and the Alabama Department of Corrections. The case is being prosecuted by Assistant U.S. Attorneys Brandon K. Essig and Jonathan Ross.
Thomas Martinez Charged with Violating the Federal Carjacking and Firearms LawsRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD) announced that Thomas Martinez, 26, of Albuquerque, N.M., has been charged with violating the federal carjacking and firearms laws in a criminal complaint filed earlier today. Martinez’s initial appearance in federal court has yet to be scheduled.
The criminal complaint charges Martinez with two counts of carjacking and two counts of using and carrying a firearm during and in relation to a crime of violence. The criminal complaint alleges that Martinez committed all four crimes in Albuquerque on July 22, 2015, as he allegedly attempted to evade APD officers who were seeking to arrest him on a warrant arising out of an unrelated state court case.
According to the criminal complaint, Martinez allegedly committed the first carjacking as he attempted to flee from officers conducting surveillance in the vicinity of a hotel in northeast Albuquerque. Martinez allegedly ran to a Chevrolet sedan occupied by a driver and three children as the driver was entering a ramp to Interstate 40. Martinez allegedly brandished a firearm at the driver, pushed the driver into the passenger seat of the Chevrolet, and used the Chevrolet to continue his flight from the officers. The children were able to get out of the vehicle before Martinez drove away with the driver in tow. An APD detective who was attempting to prevent the carjacking was dragged by the Chevrolet as Martinez drove away. As Martinez continued his flight, the driver of the Chevrolet began to fight with Martinez in an effort to get him to stop the vehicle. Martinez allegedly responded by discharging a firearm in an attempt to shoot the driver. When Martinez slowed down, the driver was able to jump out of the Chevrolet.
The complaint further alleges that Martinez continued his flight in the Chevrolet and abandoned the vehicle in a neighborhood in southeast Albuquerque. There Martinez allegedly forced his way into a Cadillac sedan occupied by an older man seated in the front passenger seat of the vehicle. As Martinez began to drive away, another man confronted Martinez, got into the Cadillac, and began fighting with Martinez. During the fight, Martinez allegedly attempted to discharge his gun at the man. Shortly thereafter, the man was able to disarm Martinez, and Martinez was arrested by APD officers.
If convicted, Martinez faces a statutory maximum penalty of 15 years in federal prison on each of the carjacking charges. Martinez faces a statutory mandatory minimum of seven years if he is convicted of brandishing a firearm during a carjacking, and a statutory mandatory minimum of ten years if convicted of discharging a firearm during a carjacking. The sentences imposed on the firearms charges must be served consecutive to any sentence imposed on the carjacking charges. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the ATF office in Albuquerque and APD. Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
martinez_complaint.pdf (162.28 KB)
Thirteen Persons Face Federal Drug ChargesRead the Press Release
A federal grand jury in Benton, Illinois, has charged thirteen Southern Illinois residents with narcotics-related offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Five individuals were charged with possession of pseudoephedrine with the intent that it be used for the production of methamphetamine. Those charged with those offenses are: Jordan D.E. Dunstan, 24, of Harrisburg, Illinois; Carolyn S. Glore-McGhee, 43, of Harrisburg, Illinois; Amanda K. Lewis, 30, of Brookport, Illinois; Marty A. Gibson, 43, of DuQuoin, Illinois; and Jared L. Hall, 29, of Galatia, Illinois.
Five more individuals were charged with conspiracy to possess pseudoephedrine pills and with possessing pseudoephedrine knowing it would be used to manufacture methamphetamine. Those so charged are: Diana L. Osteen, 49, of West Frankfort, Illinois; Richard L. Poole, 49, of West Frankfort, Illinois; Jerry D. Porritt, 51, of West Frankfort, Illinois; Adam J. Craig, 24, of West Frankfort, Illinois; and Gayla L. Craig, 58, of West Frankfort, Illinois.
Two individuals were charged with conspiracy to manufacture methamphetamine. Those persons are: Blakely D. Sullivan, 48, of Bonnie, Illinois, and Miki Jo Lampley, 40, of Benton, Illinois.
One person was charged with distribution of cocaine: Michael G. Nolen, 65, of Benton, Illinois, was charged with committing that offense in Franklin County, Illinois.
Those charged with conspiracy to manufacture methamphetamine face 10 years to life in prison and a $10 million fine. Those charged with conspiracy to provide pseudoephedrine pills to others or with providing pseudoephedrine pills to others face up to 20 years in federal prison and a $250,000 fine. The individual charged with distribution of cocaine faces up to 20 years in federal prison and a $1,000,000 fine.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Illinois State Police, Southern Illinois Drug Task Force, the Drug Enforcement Administration, the West City Police Department, Sesser Police Department, Christopher Police Department, Zeigler Police Department, Saline County Sheriff’s Office, the Franklin County Sheriff’s Office, the Saline County State’s Attorney’s Office and the Franklin County State’s Attorney’s Office.
The case is being prosecuted by Assistant United States Attorney Thomas E. Leggans.
State Employee Pleads Guilty to Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that AJMAL JENKINS, 39, of Middletown, pleaded guilty yesterday in New Haven federal court to one count of tax evasion.
This matter stems from an Internal Revenue Service investigation into State of Connecticut employees and others who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns. The investigation revealed that certain individuals submitted fraudulent W-4 forms claiming numerous exemptions, or that they were exempt, and had little or no money withheld from their wages.
According to court documents and statements made in court, JENKINS has been employed by the State of Connecticut’s Department of Mental Health and Addiction Services for approximately 15 years as a mental health assistant at the Connecticut Valley Hospital. During the 2009 through 2013 tax years, JENKINS paid little or no federal income taxes on approximately $353,565 in income he received, resulting in a federal tax loss of approximately $52,549.
JENKINS will be sentenced by U.S. District Judge Alvin W. Thompson in Hartford. He faces a maximum term of imprisonment of five years, a fine of up to $250,000, and is required to pay all back taxes, plus interest and penalties.
This case is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Susan Wines.
Springfield Woman Pleads Guilty to Meth After High-Speed Chase in Osage BeachRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman pleaded guilty in federal court today to possessing methamphetamine for distribution, following a high-speed police chase in Osage Beach, Mo.
Stacy Renae Merrell, 28, of Springfield, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in an April 2, 2015, federal indictment.
By pleading guilty today, Merrell admitted that she was in possession of methamphetamine with the intent to distribute on Feb. 19, 2015. Merrell must forfeit to the government $12,557 that was seized by law enforcement officers at the time of her arrest, which was derived from the proceeds of drug trafficking.
Merrell was arrested on Feb. 19, 2015, when she refused to stop for an Osage Beach police officer. The officer observed Merrell driving a BMW X5 SUV on U.S. Highway 54 near the Grand Glaize Bridge in Osage Beach. The officer activated his emergency lights, but Merrell refused to stop and led police in a pursuit that exceeded 100 miles per hour. Merrell exited U.S. Highway 54 at the Highway 242 exit in Miller County, Mo., and crashed through a metal gate. Her vehicle went down an embankment and crashed. Merrell ran from the vehicle but fell through a partially frozen pool of water and was completely submerged. Merrell pulled herself out of the water and surrendered to police officers.
During a search of Merrell’s vehicle, officers found a large bundle of $100 bills totaling $10,000 in the glove box and two plastic bags containing a total of 244 grams of methamphetamine on the passenger floor board inside a nylon bag.
Under federal statutes, Merrell is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $5 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Stuart J. Zander. It was investigated by the U.S. Drug Enforcement Administration, the Osage Beach, Mo., Police Department, the Lake Ozark, Mo., Police Department, the Missouri State Highway Patrol and the Mid-Missouri Drug Task Force.