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20 July 2015
Civil Complaint Alleges Fraud by Operators of Community Mental Health ClinicsRead the Press Release
PHILADELPHIA – On July 20, 2015, the U.S. Attorney’s Office for the Eastern District of Pennsylvania filed a civil health care fraud lawsuit under the False Claims Act against Melchor Martinez, Melissa Chlebowski, both of Allentown, PA, and their businesses Northeast Community Mental Health Centers (in Philadelphia), Lehigh Valley Community Mental Health Centers (in Allentown, Easton and Bethlehem), and North Carolina Community Mental Health Centers (in Raleigh, North Carolina). The institutional defendants are community mental health clinics funded largely by Medicaid and Medicare. The lawsuit was announced by United States Attorney Zane David Memeger.
Martinez was convicted of Medicaid fraud in 2000 by the Commonwealth of Pennsylvania. As a result, he was excluded from participating in all federally funded health care programs, including Medicaid and Medicare. The exclusion prohibited Martinez from owning, managing or receiving payments from any federally funded health care provider. The United States alleges that in spite of his exclusion, Martinez, assisted by his wife Chlebowski, continued to own and operate the Northeast and Lehigh Valley clinics, and that, in 2009, while his exclusion was ongoing, he started up the North Carolina clinic in Raleigh, North Carolina.
The United States alleges that during Martinez’s exclusion, the Northeast and Lehigh Valley clinics also billed Medicaid for psychiatrist visits of very brief duration, sometimes as little as two to three minutes, while fraudulently representing that patients were being seen for a 15 minute visit. In addition, the Northeast and Lehigh Valley clinics billed Medicaid and Medicare for the services of “therapists” who were not qualified to provide mental health services. The complaint also alleges that the Northeast and Lehigh Valley clinics fraudulently billed Medicare for therapy services allegedly provided without the requisite supervision.
“This civil complaint reflects our focus on pursuing individuals who defraud Medicaid and Medicare, especially after they have previously defrauded those programs and been barred from participating in them,” said Memeger.
The complaint was filed in a case brought under the qui tam provisions of the False Claims Act by a private citizen, called a “relator,” who may bring suit on behalf of the United States and share in any recovery. The United States may intervene in the case, as it has done here. Under the False Claims Act, a person that causes the submission of false or fraudulent claims to the government is liable for three times the government’s damages, plus civil penalties for each false claim. The claims asserted against the defendants are allegations only, and there has been no determination of liability.
This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the Pennsylvania Office of Attorney General and the North Carolina Department of Justice. The case is assigned to Assistant U.S. Attorneys Judith A. Amorosa, Susan R. Becker, and Viveca D. Parker of the Civil Division, and health care fraud auditor George Niedzwicki.
The lawsuit is captioned United States v. Melchor Martinez, et al. (E.D. Pa.).
Beckley man pleads guilty to federal firearm chargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that Kevin Terrell, 29, of Beckley, West Virginia, plead guilty in federal court in Beckley today to being a convicted felon in possession of a firearm. On January 13, 2015, law enforcement officers seized an assault rifle from Terrell’s residence on Granville Avenue in Beckley. Terrell admitted that he possessed the rifle, knowing that he was prohibited because of prior felony convictions in 2007 for unlawful wounding and felony destruction of property. Under federal law, a convicted felon is prohibited from possessing any firearm.
Terrell faces up to 10 years in prison and a $250,000 fine. United States District Judge Irene C. Berger scheduled the sentencing for November 18, 2015.
The United States Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Assistant Attorney General John C. Cruden Appoints Andrea L. Berlowe to be Counselor for State and Local MattersRead the Press Release
Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division (ENRD) announced the creation of a new position designed to facilitate work with State and local government attorneys.
Andrea L. Berlowe – Counselor to the Assistant Attorney General for State and Local Matters
The newly created role of Counselor for State and Local Matters is designed to facilitate the joint efforts by the division and its environmental partners in state and local governments. In this important position, Berlowe will work with the National Association of Attorneys General, the Environmental Council of the States (ECOS) and individual attorneys in state and local governments who work on environment and natural resource matters. She also will advise and assist ENRD’s leadership in litigation, legislation and policy matters affecting state and local governments.
“The majority of environmental litigation takes place at the state and local level and, therefore, cooperative federalism is a top priority for ENRD,” said Assistant Attorney General Cruden. “Andrea’s breadth of experience in the division will make her an effective liaison between the division and our enforcement partners in state and local governments and build on our prior efforts to foster these critical relationships.”
One important function of the counselor will be to increase collaboration with our state and local partners to achieve shared environmental enforcement goals. Such collaboration may range from developing and implementing joint training to serving as a resource for state and local counterparts on issues of shared concern. The counselor also will advise and assist the division regarding litigation, legislation and policy matters affecting state and local governments.
“I would like to thank Assistant Attorney General John C. Cruden for his insight with the creation of the position of Counselor on State and Local Matters,” said NAAG President Marty Jackley of South Dakota. “Allocating resources to work directly with state and local governments is invaluable and we look forward to fostering this partnership while addressing the environment and natural resource issues that affect every citizen throughout the country.”
“We commend Assistant Attorney General Cruden for his attention to improving the state-federal legal relationship,” said ECOS President Robert J. Martineau Jr., Commissioner of the Tennessee Department of Environment and Conservation. Martineau, an attorney with past service in the federal government, has made improving coordination between states and the federal government on legal matters a priority while at the helm of the national organization of state environmental agency heads. “We look forward to making this renewed function at the U.S. Department of Justice Environment and Natural Resources Division productive and positive.”
Berlowe joined ENRD through the Attorney General’s Honors Program in 1993, serving first as a Trial Attorney, then Senior Attorney, in the Division’s Natural Resources Section. Since 2001, she has served as Senior Counsel in the Law and Policy Section (LPS) where she handled a wide variety of policy, litigation and legislative matters involving public lands and natural resources, oceans issues, professional responsibility, and international environmental law. During her ENRD tenure, Berlowe has litigated a broad array of cases in federal district courts and courts of appeal and worked closely with the division’s leadership office on policy matters. She has received multiple awards from ENRD and client agencies for her work. In 2013, Berlowe was detailed as special counsel to the newly established Gulf Coast Ecosystem Restoration Council, a new federal entity created by Congress and comprised of six federal agencies and the five Gulf Coast states, which is tasked with developing and funding comprehensive ecological and economic recovery of the Gulf Coast region following the Deepwater Horizon disaster. She earned a J.D., cum laude, and a Masters in Environmental Law and Policy, summa cum laude, from Vermont Law School and holds a B.S. in Zoology from the University of Vermont.
Anchorage Couple Sentenced for Drug, Gun, and Money Laundering CrimesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage couple was sentenced on Friday, July 17, 2015, by United States District Court Judge Timothy M. Burgess to serve 135 months and 72 months respectively for their involvement in drug trafficking, money laundering, and gun crimes.
Daniel Martin Harris, 28, of Anchorage, Alaska, previously pled guilty to drug trafficking and money laundering crimes as well as being a convicted felon in possession of multiple firearms. Daniel’s wife, Sandra Luz Harris, 26, also of Anchorage, previously admitted maintaining the couple’s Anchorage home for the purpose of distributing methamphetamine and heroin.
According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted both cases, Daniel Harris was a longtime heroin and methamphetamine dealer in the Anchorage area. He regularly purchased both drugs on credit from his Anchorage-based supplier. After selling the drugs, Mr. Harris then kept the profits for himself. With these funds, he purchased vehicles, including a 1977 Corvette and a 1970 El Camino, as well as other items, which he later took affirmative steps to hide from law enforcement. Mr. Harris returned the remaining cash proceeds to his source in order to promote the parties’ continued drug trafficking. Over a six month period in 2013, Mr. Harris paid his supplier approximately $508,000 in cash drug proceeds. In October and November 2013, he paid his supplier an additional $75,000 in cash earned from selling heroin and methamphetamine.
In October 2013, federal investigators raided the Anchorage house where Mr. Harris’ supplier maintained his drug operation. During the search, investigators recovered five pounds of methamphetamine, five kilograms of cocaine, and tens of thousands of dollars in cash. They also seized a detailed drug ledger cataloguing Mr. Harris’ drug distribution and money laundering activities.
One month later, in November 2013, officers of the Anchorage Police Department (APD) responded to a 911 call from the trailer that Mr. Harris shared with his wife and young son. While at the residence, investigators discovered that the Harris couple had stored large quantities of heroin and methamphetamine as well as numerous items of drug paraphernalia, including milk jugs full of syringes used for injecting heroin, loaded syringes full of heroin, large amounts of cash, multiple digital scales, and a money counter. In the master bedroom, investigators discovered a backpack containing approximately 331 grams of methamphetamine, 372 grams of heroin, and a loaded handgun. Elsewhere inside, they found multiple additional firearms, including an AR-15 rifle and two semi-automatic pistols, a grinder containing more heroin, and other indicia of significant, large-scale drug trafficking activities.
In sentencing the couple, Judge Burgess noted the seriousness of their offenses and the need to protect the public. In Daniel Harris’ case, Judge Burgess specifically remarked that mixing guns and drugs is often a prescription for disaster. In sentencing Sandra Harris, who had no criminal history prior to becoming involved in her husband’s drug trafficking, Judge Burgess noted that there was a good chance that she could be rehabilitated but cautioned that the seriousness of her actions could not be ignored.
Following his release from custody, Daniel Harris will be on supervised release for a total of five years. The court also entered a money judgment against Mr. Harris in the amount of $583,000 – the total amount of drug money laundered as part of the case. Following her release, Sandra Harris will be on supervised release for three years, during which time she will have to complete 200 hours of community service. Mrs. Harris was not included in the money judgment as she was not directly involved in her husband’s money laundering crimes.
In announcing the sentences, U.S. Attorney Loeffler thanked the many agents whose work contributed to the cases. The cases were investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF), and included the work of agents from the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigations (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD).
Albuquerque Man Pleads Guilty to Robbing 16 Businesses in New Mexico, Texas and Colorado During Three Month Period in 2012Read the Press Release
ALBUQUERQUE – Christopher Perea, 30, of Albuquerque, N.M., pleaded guilty today in federal court to violating the Hobbs Act by robbing 16 businesses involved in interstate commerce. The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Perea was arrested in Oct. 2012, based on an indictment charging him with violating the Hobbs Act by robbing an Albuquerque business that was engaged in interstate commerce.
During today’s proceedings, Perea entered a guilty plea to the one-count indictment and a 15-count felony information charging him with interfering with interstate commerce by robbing the following 16 businesses between May 2012 and July 2012:
- Satellite Coffee on Montgomery Blvd. NW in Albuquerque on May 11, 2012;
- Subway located on Louisiana NE in Albuquerque on June 1, 2012;
- Kentucky Fried Chicken on San Mateo NE in Albuquerque on June 7, 2012;
- Radio Shack on Lomas NE in Albuquerque on June 10, 2012;
- Subway on Jefferson NE in Albuquerque on June 17, 2012;
- Subway on Montgomery Blvd. NW in Albuquerque on June 21, 2012;
- Flower Company on Juan Tabo NW in Albuquerque on June 21, 2012;
- GameStop on Lamar Blvd. in Austin, Texas, on June 26, 2012;
- GameStop on Brodie Lane in Sunset Valley, Texas, on June 27, 2012;
- GameStop on N IH 35 in Austin, Texas, on June 28, 2012;
- GameStop on The Lakes Blvd. in Austin, Texas, on July 2, 2012;
- Radio Shack on Colorado Blvd. in Denver, Colo., on July 5, 2012;
- GameStop on E. Quincy Ave. in Aurora, Colo., on July 7, 2012;
- Radio Shack on Colfax Ave. in Denver, Colo., on July 7, 2012;
- Hobby Lobby on S. Monaco Pkwy. in Denver, Colo., on July 9, 2012; and
- GameStop on Southgate Rd. in Colorado Springs, Colo., on July 10, 2012.
In entering guilty pleas to the robberies he committed in Texas and Colorado, Perea waived his right to be tried separately in Texas and Colorado for the crimes committed in those states, and instead agreed to consolidate all the proceedings in the District of New Mexico.
Perea has been in federal custody since his arrest in Oct. 2012, and remains detained pending his sentencing hearing. Perea faces a statutory maximum sentence of 20 years on each of the 16 Hobbs Act counts to which he pleaded guilty.
This case was investigated by the Albuquerque office of the FBI. The FBI partnered with APD to investigate the Albuquerque robberies; it partnered with the Austin (Texas) Police Department to investigate the Texas robberies and with the Aurora (Colorado) Police Department to investigate the Colorado robberies.
Assistant U.S. Attorney Jon K. Stanford 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.
Alabama Firefighter Sentenced for Illegal Guided Deer HuntsRead the Press Release
DES MOINES, IA - On July 17, 2015, Robert J. Wilkins, 53, of Semmes, Alabama, was sentenced by United States District Court Judge James E. Gritzner to 4 years of probation for Wilkins’ role in guiding illegal deer hunts in Iowa, announced United States Attorney Nicholas A. Klinefeldt. As conditions of his probation, Wilkins must serve 6 months of home confinement and pay $12,000 in restitution to the Iowa Department of Natural Resources. Wilkins was also ordered to pay a $100 special assessment to the Crime Victims Fund.
Beginning in at least 2010, Wilkins guided out-of-state hunters, who did not have Iowa hunting license or tags, during illegal white-tail buck deer hunts on land in rural Lucas County. Wilkins arranged for the hunts, provided hunting equipment, collected guide fees, provided instructions to hunters for avoiding detection by game wardens and law enforcement, helped process illegally taken deer, and transported the meat, capes and antlers of illegally taken deer from Iowa to Alabama.
This investigation was conducted by the United State Fish and Wildlife Service, the Iowa Department of Natural Resources, and the Alabama Game and Fish Division, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
ADA 25th Anniversary: Advancing Equal Access!Read the Press Release
CEDAR RAPIDS, IOWA – On July 26th the nation recognizes the 25th anniversary of the landmark legislation known as the Americans with Disabilities Act (ADA). With this legislation, the nation committed itself to eliminating discrimination against people with disabilities. The United States Department of Justice’s Civil Rights Division plays a critical role in enforcing the ADA, working towards a future in which all the doors are open to equality of opportunity, full participation, independent living, integration and economic self-sufficiency for persons with disabilities.
The ADA sets four goals for people with disabilities:
1. Equal opportunity;
2. Full participation;
3. Independent living; and
4. Economic self-sufficiency.
The ADA’s purpose is simple. The ADA is about securing for people with disabilities the most fundamental of rights—the right to live in the world. It ensures they can go places and do things that other Americans take for granted.
The United States Attorney’s Office for the Northern District of Iowa also plays a vital role in enforcing the ADA and ensuring equal access to all. The office declared its unwavering enforcement of the legislative mandates during a press event held in front of the federal courthouse, surrounded by various non- governmental agency and organization representatives active in support of those persons with disabilities. United States Attorney Kevin W. Techau stated, “The purpose of the event is to celebrate the ADA by discussing how this legislation helped people with disabilities fulfill the American vision of equal opportunity for all.”
Techau recognized the significance of the ADA and its many milestones since its passage in 1990, but noted that compliance is something that must be enforced every day. Toward that end, he announced his office has launched a review of select businesses to determine ADA compliance. Techau stated, “It’s been a quarter of a decade since the passage of this legislation and no public accommodation should have an excuse for noncompliance.”
Questionnaires have been sent to 50 establishments that are expected to timely report on their ADA compliance. From this number several will be selected for an on-sight inspection conducted by trained inspectors familiar with ADA requirements.
As part of the review, restaurant owners and operators are being asked to complete a Survey Form, supplied by the Government, indicating their restaurant's accessibility. Investigators may then conduct on-site inspections to confirm survey responses and to evaluate compliance with federal ADA regulations. Owners and operators of restaurants found to be non-compliant will have the option of entering into a Voluntary Compliance Agreement with the Government whereby they voluntarily agree to upgrade their facilities to meet ADA requirements. Owners and operators found to be engaging in a pattern or practice of discrimination, or that fail to enter Voluntary Compliance Agreements, may face a civil lawsuit brought by the Government and/or be subject to penalties, including monetary damages and civil fines.
Techau stressed, “ADA enforcement is a top priority for our office. We will continue to investigate and bring appropriate enforcement actions when people fail to obey the requirements of the ADA law. No one should be unfairly deprived of the opportunity to enjoy a meal out. We will take all reasonable legal steps to make sure they have equal access. It is our expectation that any restaurants found to be seriously deficient will voluntarily upgrade their facilities and avoid litigation. We also hope that proprietors who are today planning renovations of new restaurants will keep the ADA firmly in mind before finalizing those plans, when it is much less costly to do so.”
The compliance review was initiated in June by seeking information and assistance from organizations that might be able to identifying entities with accessibility concerns. The request for information was broad and sought information on any non-complying business generally open to the public. Inputs from these organizations, as well as analysis from the responses to the 50 ADA questionnaires, will guide the U.S. Attorney’s Office in deciding where to focus its attention.
The findings from the on-site inspections determine what action, if any, might be necessary to ensure compliance. For a first time violation under Title III of the ADA the monetary penalties are up to $75,000; for a subsequent violation the maximum monetary penalty is $150,000.
If you or someone you know has been a victim of discrimination under the ADA, please contact the U.S. Attorney’s Office at the address below. You may also email a photograph depicting what you believe represents restricted accessibility (please identify the business and its address):
United States Attorney’s Office
Civil Rights Unit – Civil Division
111-Seventh Avenue SE, Box 1
Cedar Rapids, IA 52401‑2101
A complaint form can be found at - http://www.ada.gov/complaint/
Complaints can be emailed to: [email protected]
Fax: 319-363-1990
TTY: 319-286-9258
ADA Phone: 319-363-0534Follow us on Twitter @USAO_NDIA.
$1 Million in Heroin SeizedRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Jose Angel Cerillo (41, Brownsville, Texas) and Maria Zacharias (59, Chalmette, Louisiana) with conspiracy to possess with intent to distribute one kilogram or more of heroin. If convicted, they each face a minimum of 10 years, up to life, in federal prison.
According to the complaint, Cerillo and Zacharias agreed to possess with the intent to distribute one kilogram or more of heroin. At the time of their arrests, they were in possession of approximately 2.5 kilograms of the drug, which had an estimated street value of one million dollars.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Matthew Perry.
18 July 2015
Pennsylvania Man Arrested, Charged with Production of Child PornogrphyRead 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 Thomas Gillespie, 41, of East Brady, PA, was arrested and charged by criminal complaint with production of child pornography. The charge carries a maximum penalty of 30 years in prison and a $250,000 fine.Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaint, in July and August of 2014, the defendant contacted the 10 year old victim through social media. Gillespie asked the victim to take and send him sexually explicit photos and videos. During the execution of a search warrant at the defendant’s East Brady residence, law enforcement officers recovered three computer hard drives. A forensic analysis of the hard drives recovered over 100 photos and videos of the victim and other victims, known and unknown to law enforcement.
The defendant made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained.
The complaint is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Child Exploitation Task Force which includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.
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.
17 July 2015
VA Employee Charged with Falsifying Medical Records of Numerous VeteransRead the Press Release
AUGUSTA, GA: A 50-count indictment, unsealed today in federal court, has charged Cathedral Henderson, 50, a U.S. Department of Veterans Affairs (VA) employee and the former Chief of Fee Basis over non-VA Care at the Charlie Norwood VA Medical Center in Augusta, Georgia, with crimes related to his alleged falsification of the medical records of numerous VA patients. The indictment alleges that Henderson terminated unresolved consults – medical appointments that had not been scheduled or completed – by falsely stating in VA patients’ medical records that “services have been completed or patient refused services.”
United States Attorney Edward Tarver stated, “The crimes alleged in this indictment are troubling. Our VA officials and employees are entrusted with the health and welfare of some of the most honorable and vulnerable in our nation – our veterans. Patients, doctors, nurses and hospitals rely heavily upon the truth and accuracy of our permanent medical records. The intentional falsification of veterans’ medical records is a serious offense and will not be tolerated.”
Assistant Inspector General for Investigations Quentin G. Aucoin stated, “The VA Office of Inspector General (OIG) vigorously investigates allegations regarding VA employees who alter medical records with false statements in order to conceal unfulfilled consults for medical procedures. These alleged actions give the appearance that medical care was rendered or, in some cases, the appearance that veterans declined medical care. Alterations of medical records and false statements in these records needlessly expose patients to harm and also undermine the integrity of VA data relied upon by VA decision-makers, who oversee and manage operations.”
Henderson has been charged with 50 counts of making false statements. If convicted, Henderson faces a maximum sentence of 5 years in prison and a $250,000 fine on each count. An indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by Special Agents from the VA-OIG’s Office of Investigations, with assistance from clinical staff in the VA-OIG’s Office of Healthcare Inspections. Assistant United States Attorney Lamont Belk is prosecuting the case on behalf of the United States. Any questions should be directed to First Assistant United States Attorney James D. Durham at (912) 201-2547.
U.S. Attorney’s Office Hosted 3rd Annual Youth Legal and Law Enforcement SymposiumRead the Press Release
ATLANTA – The U.S. Attorney’s Office hosted its 3rd Annual Youth Symposium on Thursday, July 16, 2015. The symposium included overviews of both federal criminal prosecutions and civil proceedings from various agencies including the Acting U.S. Attorney, with presentations from the FBI, DEA, U.S. Secret Service, the Social Security Administration – Office of the Inspector General, Federal Bureau of Prisons, and the Department of Homeland Security Investigations.
“This summit is an incredible opportunity to personally connect with so many talented young people and encourage them toward positive futures after high school and college,” said Acting U.S. Attorney John Horn. “They are able to see so many possibilities for a career in law enforcement, and we hope this event strengthens their trust and understanding in the justice system as well.”
More than 125 students and guests were provided with a basic understanding of the criminal justice system, helping foster relationships between law enforcement and the communities they serve, and informing students of career opportunities in federal law enforcement.
“A career in law enforcement could be very rewarding,” said Assistant U.S. Attorney and Community Outreach Coordinator Loranzo Fleming. “Indeed, one can ‘do well’ and ‘do good’ at the same time; you do not have to choose one or the other.”
Special Agents from the participating agencies shared information about requirements for employment, training, job duties, and responsibilities. Each presenter encouraged students to strive for academic excellence and to consider a career in law enforcement. They also shared interesting, real-life stories. For example, U.S. Bureau of Prison personnel explained that life behind bars is much different than seen on television.
After the presentations from federal law enforcement agencies, the students and guests visited the courtrooms of U.S. District Judge Richard W. Story, U.S. Magistrate Judge Justin S. Anand, and U.S. Magistrate Judge Russell G. Vineyard. The judges provided information about the structure and function of the court system; layout and design of the courtroom; and shared information about their job duties and responsibilities. The judges also gave inspirational messages and encouraged students to consider legal and law enforcement careers.
The students and invited guests represented various organizations including the Cascade United Methodist Church Youth Ministry, Operation P.E.A.C.E. Inc., Russell Management Resident Services, Inc., DeKalb County Juvenile Court Journey & Youth Achievement Programs, Fulton County Junior D.A., Program, Urban League of Greater Atlanta – Urban Youth Empowerment Program & Neighborhood College Program, Fulton County Junior Deputy Clerk Program, and Atlanta Bar Association Summer Law Intern Program.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Two Mason City Men Sentenced to Federal Prison for Meth-Distribution ConspiracyRead the Press Release
Two men have been sentenced to federal prison for their roles in a Mason City area methamphetamine distribution conspiracy.
Shawn Benedict Zimmerman, age 42, of Clear Lake, Iowa, received his prison term after an April 20, 2015, guilty plea and Shane Lester McRoberts, age 28, of Nora Springs, Iowa, received his prison term after an April 16, 2015, guilty plea. Zimmerman and McRoberts each pled guilty to conspiracy to distribute methamphetamine.
Information provided by the United States at the sentencing and change of plea hearings revealed that, during the conspiracy between June 2014 and December 2014, Zimmerman supplied methamphetamine to McRoberts, who sold methamphetamine for him. Zimmerman controlled the operation. McRoberts was selling methamphetamine sourced by Zimmerman. During his involvement in the conspiracy McRoberts distributed more than 5 grams of pure methamphetamine.
Zimmerman and McRoberts, were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Zimmerman was sentenced to 188 months’ imprisonment and McRoberts was sentenced to 45 months’ imprisonment. Zimmerman and McRoberts must also serve a 5-year term of supervised release after the prison term. Zimmerman and McRoberts were each ordered to pay a $100 special assessment. There is no parole in the federal system.
Both are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.giv/cgi-bin/login.pl.
The case file number is 15-3011.
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Three Tennessee Men Plead Guilty to Killing During Home-Invasion RobberyRead the Press Release
Three Clarksville, Tennessee, men pleaded guilty to using a firearm to kill during a home-invasion robbery. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee made the announcement.
Cornell Oliver, 23, and Blake Wright, 25, pleaded guilty today before Chief U.S. District Judge Kevin H. Sharp to use of a firearm in a crime of violence resulting in death. Jerry Dinkins, 26, pleaded guilty on June 26, 2015, to the same offense. Wright and Oliver will be sentenced on Nov. 10, 2015, and Dinkins will be sentenced on Oct. 23, 2015.
According to the plea agreements, on Oct. 27, 2010, Oliver, Dinkins and Wright participated in a home-invasion robbery at a crack house in Clarksville, and that the defendants targeted the house and the victim Raymond Caston, aka Black, because he was known to cook and sell substantial amounts of crack cocaine at the house and to have large amounts of cash.
The plea agreements provide that, when the defendants arrived at the house, one of the defendants kicked open the door. At the time, at least eight people were inside the house. The defendants then entered and demanded money and drugs from Caston. One of the defendants proceeded to hit Caston with a gun. After Caston indicated that he did not have money or drugs, the defendants forced Caston outside. People inside the house then heard multiple gunshots, but did not see which of the defendants actually fired shots. The defendants then fled, and Caston, who had been shot three times, was pronounced dead at the scene.
DNA and other physical and forensic evidence collected at the scene and eyewitness accounts also connected the defendants to the murder.
The case was investigated by Clarksville Police Department and the Drug Enforcement Administration. The case is being prosecuted by Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee.
Dinkins Plea Agreement
Oliver Plea Agreement
Wright Plea Agreement
Three Tennessee Men Plead Guilty for Using A Firearm in Crime of Violence Resulting in DeathRead the Press Release
Cornell Oliver, 23, and Blake Wright, 25, both of Clarksville, Tennessee, pleaded guilty today for their role in the murder of Raymond Caston, during a home-invasion robbery on October 27, 2010, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. Jerry Dinkins, 26, also from Clarksville, previously pleaded guilty on June 26, 2015, for his involvement in the crime. All were charged in a second superseding indictment on April 25, 2014.
According to the plea agreements, on October 27, 2010, Oliver, Dinkins and Wright participated in a home-invasion robbery at a crack house on Elder Street in Clarksville. The defendants targeted Raymond Caston, aka Black, because he was known to cook and sell substantial amounts of crack cocaine at the house and to have large amounts of money.
When they arrived at the house, one of the three defendants kicked open the door and all three entered and went directly to Caston and demanded his money and drugs. One of the robbers proceeded to hit Caston with a gun. Caston was then forced outside where the defendants continued to threaten him. People inside the house soon heard multiple gunshots, but were not outside and did not see which of the three robbers actually fired shots. The defendants then fled, and Caston, who had been shot three times, was pronounced dead at the scene.
DNA and other physical and forensic evidence collected at the scene and eyewitness accounts also connected the defendants to the murder of Caston.
Dinkins will be sentenced by Chief U.S. District Judge Kevin Sharp on October 23, 2015 and Wright and Oliver will be sentenced on November 10, 2015.
According to the terms of the plea agreement, Dinkins and Oliver have agreed to a prison term of 25 years and Wright has agreed to be sentenced to between 22 ½ -25 years in prison.
The case was investigated by Clarksville, Tennessee Police Department and the DEA. The case is being prosecuted by Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee and Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section.
St. Croix Man Sentenced to 37 Months in PrisonRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis, on July 16, 2015, sentenced Paul Girard, 27, to 37 months in prison for Possession of Prison Contraband, United States Attorney Ronald W. Sharpe announced. Judge Lewis ordered Girard to serve the sentence consecutively to a separate sentence imposed by the Superior Court on March 3, 2015.
Girard pleaded guilty to four counts of possession of prison contraband on January 9, 2015. The charges stemmed from cell searches conducted by members of Golden Grove Adult Correctional Facility’s Gang Intelligence Search Team on November 16, 2012; January 16, 2013; and June 18, 2013, as well as a search conducted by federal law enforcement officers on April 7, 2014, while Girard was an inmate. The officers discovered and seized cell phones, a knife, and a homemade weapon or “shank” during the searches.
“Contraband in prison threatens the safety and security of inmates, employees, and the community as a whole,” U.S. Attorney Sharpe said. “Cell phones, in particular can be used to facilitate criminal activity inside and outside of Golden Grove including narcotics distribution and murder.”
Girard was sentenced on two counts each to 12 months in prison for possessing cell phones, 37 months for possessing a knife, and 37 months for possessing a shank, all to be served concurrently. The Court also sentenced Girard to one year of supervised release on each of the cellular telephone counts and to three years of supervised release on each of the weapon counts to run concurrently. Finally, the Court ordered Girard to pay a special assessment of $250.00.
The case was investigated by the United States Drug Enforcement Administration (DEA) and the Virgin Islands Bureau of Corrections. It was prosecuted by Assistant United States Attorneys Rhonda Williams-Henry and Alphonso Andrews.
South Carolina Man Indicted for Illegally Storing Hazardous Waste at Camden, New Jersey, Chemical Company and Making False Statements to the EPARead the Press Release
NEWARK, N.J. – A federal grand jury returned a three-count indictment today against the former president and CEO of Concord Chemical Co. Inc. (Concord) for illegally storing hazardous waste and making false statements to the U.S. Environmental Protection Agency (EPA), U.S Attorney Paul J. Fishman announced.
Miguel Castillo, 61, of Hilton Head, South Carolina, was charged with one count of storing hazardous waste at Concord’s Camden, New Jersey, facility in violation of the Resource Conservation and Recovery Act (RCRA) and two counts of making false statements to the EPA.
According to the indictment:
RCRA was enacted in 1976 to address a growing nationwide problem with industrial and municipal waste. RCRA was designed to protect human health and the environment by prohibiting the treatment, storage or disposal of any hazardous waste without a permit. The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) authorizes the EPA to remove hazardous waste from industrial sites and hold responsible parties liable for the costs.
Concord manufactured, repackaged and distributed a wide variety of chemical products, including cresylic acid, soaps, waxes, pipe lubricants and emulsions. Some of Concord’s products and the raw materials used to make them were hazardous. Castillo was Concord’s president or CEO from 2003 through August 2011. He also served as the president and director of another company, KW Inc., which repackaged and distributed commercial laundry products while leasing space from Concord’s Camden facility from May 2008 through the fall of 2009. Neither Concord nor KW had a permit to store hazardous waste at the Camden facility.
While Castillo was in charge of Concord, drums containing hazardous waste were stored in the Camden facility basement. In 2004 and 2005, Concord employees attempted to remove those drums but allegedly never finished due to claims by Castillo that Concord could not afford to remove additional drums.
By March 2010, Concord and KW had ceased operations at Concord’s Camden facility. In August 2010, the EPA conducted a site visit and discovered that the facility was devoid of employees, left in a deteriorated condition and filled with drums containing corrosive and ignitable hazardous waste. From October 2010 through March 2011, the EPA removed the hazardous substances from the facility.
On Sept. 1, 2011, the EPA requested information from Castillo in order to identify the parties responsible for EPA’s removal costs. When Castillo responded to the EPA’s requests, he failed to identify himself as Concord’s president and CEO or KW’s president and director.
The illegal storage of hazardous waste charge and each of the false statements charges carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense.
U.S. Attorney Fishman credited special agents of the EPA, under the direction Special Agent in Charge Vernesa Jones-Allen, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Kathleen P. O'Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.
The charges and allegations against Castillo are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Somersworth Man Pleads Guilty to Bank RobberyRead the Press Release
CONCORD, NEW HAMPSHIRE: Todd Elliott, 22, of Somersworth, New Hampshire, appeared in United States District Court today and entered a guilty plea to one count of bank robbery announced Acting United States Attorney Donald Feith.
Elliott walked into a Citizens Bank in Somersworth, New Hampshire, on November 10, 2014 and gave the teller a note demanding money. The teller gave Elliott a quantity of United States currency as well as a dye pack resembling a stack of bills. As Elliott ran from the bank, the dye pack exploded which led to his apprehension shortly thereafter. Elliott – who faces a maximum sentence of twenty years in prison and criminal fines of up to $250,000 – will be detained pending sentencing, which is presently scheduled for November 13, 2015.
“The successful resolution of this bank robbery is due to the great investigative work of the Somersworth Police and the assistance of the Federal Bureau of Investigation,” stated Acting United States Attorney Donald Feith. “Bank robbery, even an unarmed bank robbery, is an inherently dangerous crime that causes great turmoil to its victims. We will continue to work with our state and local partners to vigorously prosecute these dangerous crimes.”
This case was investigated by the Somersworth Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Georgiana Konesky.
Six Men Indicted on Charges of Identity Theft, Fraud, and Money LaunderingRead the Press Release
ALEXANDRIA, Va. – In an eighteen-count indictment unsealed today, six men were charged by a federal grand jury with aggravated identity theft, fraud, money laundering, and conspiracy.
The men charged in the indictment are: Ray Ekobena, 27, of Alexandria; Stefan Ekobena, 24, and Gani Cole, 27, both of Atlanta, Georgia; Rodney Hardy, 25, of Hyattsville, Maryland; Deallto Davis, 20, and Jerome Johnson, 32, both of Washington, D.C.
According to the indictment, since at least 2009, Ray Ekobena led a conspiracy involving his five co-defendants and others, the goal of which was to defraud financial institutions through the deposit of fraudulent and stolen checks. The conspirators would recruit other individuals via social media websites (such as Instagram) to provide debit cards and personal information in exchange for a cash payment. The conspirators would then deposit fraudulent checks into the accounts of the debit cardholders and withdraw the money before the banks discovered the fraud. The conspirators also stole real checks, including two checks totaling $223,570.00 that were intended for the Children’s National Medical Center in Washington, D.C.
The indictment further alleges that Ray Ekobena stole social security numbers and other personal identifying information and used them to further his fraudulent schemes. For example, Ekobena used some of the stolen social security numbers to obtain identification from the District of Columbia bearing a photo of Ekobena, but a victim’s name and date of birth. Ekobena also used stolen personal information to obtain financing to buy or lease several vehicles, including a Mercedes.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; David M. McGinnis, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS); Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after the indictment was unsealed.
This case is being investigated by the USPIS, the FBI’s Washington Field Office, and the Fairfax County Police Department. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Joseph V. Longobardo are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-180.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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Severn Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Albert A. Firlie, age 67, of Severn, Maryland, pleaded guilty today to possession of child pornography. Firlie faces an enhanced sentence due to a 1991 child abuse conviction in Howard County, Maryland, involving the sexual abuse of a prepubescent minor female.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Anne Arundel County Police Chief Tim Altomare.
According to Firlie’s plea agreement, beginning no later than October 2003, Firlie used the internet to locate and obtain child pornography. In November 2007 and April 2009, Firlie created email accounts with Hotmail and Verizon, respectively, with a username that combined his first name with the first name of the victim in his child sex abuse case. A search of Firlie’s computers and email accounts reveal that Firlie was using internet search services in an attempt to locate the victim and her family as recently as late June 2014.
Between December 12, 2008 and December 26, 2014, Firlie uploaded approximately 120 videos depicting minors engaged in sexually explicit conduct to his account associated with both email addresses, utilizing a website that provided users with remote, “cloud,” storage for media files. On September 13, 2014, Firlie attempted to upload 51 videos depicting minors engaged in sexually explicit conduct to a Google “gmail” address, using a different website that also provided users with remote, “cloud,” storage for media files. That website detected the use of its cloud services for the storage of child pornography and reported the matter to the National Center for Missing and Exploited Children, who in turn reported the matter to the U.S. Postal Inspection Service.
On February 3, 2015, a federal search warrant was executed at Firlie’s residence. During execution of the warrant, investigators recovered a large number of computers and other digital storage media. Forensic examination of the seized media showed that Firlie was in possession of more than 600 images, including over 120 videos, depicting minors engaged in sexually explicit conduct. The images included prepubescent minors and sadistic or masochistic conduct.
As part of his plea agreement, Firlie must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Firlie faces a minimum sentence of 10 years in prison and a maximum of 20 years in prison, followed by up to lifetime of supervised release, for possession of child pornography. U.S. District Judge James K. Bredar has scheduled sentencing for October 19, 2015 at 2:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service, HSI-Baltimore, Maryland State Police and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who is prosecuting the case.
Savannah Pastor Sentenced to Nearly 10 Years for Role in Stolen Identity and Tax Fraud SchemeRead the Press Release
SAVANNAH, GA: XAVIER FRANKLIN LEWIS, the former Pastor of the Holy Ghost Praise and Deliverance Ministries outside of Savannah, Georgia was sentenced last week to 119 months’ imprisonment for his role as the check casher in a stolen identity tax fraud scheme. Late last year, a jury found LEWIS guilty of 22 counts, including submitting false claims to the IRS, theft of public money, aggravated identity theft, operation of an unlicensed money transmitting business, and bank fraud.
According to the evidence presented during the trial and the sentencing hearing, LEWIS used a number of separate bank accounts he controlled, including three accounts opened in the name of his church, to negotiate over 90 government-funded tax refund checks. LEWIS obtained the checks after they were either generated as the result of submitting a fraudulent income tax return with the IRS or were generated at the legitimate request of a taxpayer but stolen from the mail before it reached its final destination. In total, LEWIS fraudulently negotiated nearly $250,000 worth of government-funded checks.
United States Attorney Edward J. Tarver said, “This defendant acted as a wolf in sheep’s clothing using his church to conduct an illegal check cashing operation as part of a stolen identity and tax fraud scheme. Now, he’ll spend almost ten years in federal prison. This case should serve as notice to those who would abuse the trust of the American people to enrich themselves – if you attempt to rip off the taxpayers of this great country, you should expect to spend time in prison.”
“We would like this verdict and sentence to serve as a strong message that there are consequences for stealing and using other individuals’ personal identifying information,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “Individuals who devise schemes to steal public money face federal prosecution and federal prison.”
IRS Special Agent Stephanie Huebner and United States Secret Service Agent Matthew Britsch conducted the investigation which led to the indictment. IRS Special Agents Jason Dulin and Andres Hernandez assisted with the trial. Assistant United States Attorneys C. Troy Clark and Charles B. Wydysh prosecuted this case on behalf of the United States. Any additional questions should be directed to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Santa Fe Man Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – George B. Lamonda, 44, of Santa Fe, N.M., was sentenced today to 63 months in federal prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Lamonda and co-defendant Jared Ray Behrends, 33 of Albuquerque, N.M., were arrested on a criminal complaint in Feb. 2014. A third defendant, Jason Parris, 35, of Rio Rancho, N.M., was arrested in Mar. 2014. According to court filings, on Feb. 12, 2014, the New Mexico State Police found approximately 502.7 grams of methamphetamine concealed within a Tupperware container that was in a bag of dog food when they searched Lamonda’s vehicle during a routine traffic stop.
The three defendants were indicted in Mar. 2014, in an eight-count indictment charging Lamonda, Behrends and Parris with conspiring to distribute methamphetamine, Count 2 charges Lamonda and Behrends with possession of methamphetamine with intent to distribute, Counts 3 and 4 charge Parris with using a telephone to facilitate a drug trafficking crime, and Counts 5 through 8 charge Parris with distributing methamphetamine. The indictment alleged that the defendants committed these offenses between Oct. 2013 and Jan. 2014, in Bernalillo County, N.M.
Lamonda pled guilty on March 20, 2015, to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Lamonda admitted that on Feb. 11, 2014, he travelled with Behrends to Phoenix, Ariz., to purchase methamphetamine knowing that the drugs would be distributed in Albuquerque. He further admitted that they hid the drugs in a bag of dog food before returning to Albuquerque, where they were stopped by law enforcement and found to be in possession of approximately 442.9 grams of methamphetamine.
Behrends pled guilty on Sept. 9, 2014, to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Behrends admitted that on Feb. 11, 2014, he travelled with Lamonda to Phoenix, Ariz., to purchase methamphetamine knowing that drugs would be distributed in Albuquerque. He further admitted that they hid the drugs in a bag of dog food before returning to Albuquerque. Behrends also acknowledged making a similar trip to Phoenix with Lamonda and that he received $500.00 when they returned to Albuquerque. Behrends was sentenced on March 6, 2015, to 60 months in prison followed by three years of supervised release.
Parris pled guilty on Sept. 11, 2014, to Count 8 of the indictment charging him with distribution of methamphetamine. He admitted that on Jan. 27, 2014, he sold 27.9 grams of methamphetamine to an undercover law enforcement officer. Parris was sentenced on Feb. 18, 2015, to 51 months in federal prison followed by three years of supervised release.
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police. Assistant U.S. Attorneys Jennifer M. Rozzoni and Stephen R. Kotz prosecuted the case.
Riverview Woman Sentenced to Three Years for Stolen Identity Refund Fraud and Making False Statements to HUDRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Honeywell has sentenced Ronika Paris to three years in federal prison for wire fraud, aggravated identity fraud, and making false and fraudulent statements to the U.S. Department of Housing and Urban Development (HUD). The Court also entered a money judgment against her in the amount of $17,979, the proceeds of the fraudulent tax refunds, and ordered her to pay $70,873 in restitution to the Internal Revenue Service.
Paris pleaded guilty on April 14, 2015.
According to court documents, Paris obtained and used the stolen personal identifying information of more than 60 individuals to file false tax returns and open pre-paid debit cards. From May 2013 through September 2013, Paris filed false tax returns claiming approximately $446,554 in refunds. Many of the victims were elderly and lived out of state. In February 2013, Paris made false and fraudulent statements to HUD and the Tampa Housing Authority on her subsidized housing disclosure forms.
This case was investigated by the Hillsborough County Sheriff’s Office, the Internal Revenue Service – Criminal Investigation, the U.S. Department of Housing and Urban Development, and the Tampa Housing Authority. It was prosecuted by Assistant United States Attorney Megan Kistler and former Assistant United States Attorney Matthew Mueller.
Prior Sex Offender from Albuquerque Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Michael Lippke, 71, of Albuquerque, N.M., made his initial appearance in federal court on a nine-count indictment charging him with child pornography charges. Lippke remains in custody pending a detention hearing, which is scheduled for July 20, 2015.
Lippke was arrested yesterday on an indictment that charges him with two counts of distribution of visual depictions of minors engaged in sexually explicit conduct and seven counts of possession of visual depictions of minors engaged in sexually explicit conduct. The indictment alleges that Lippke distributed child pornography on July 20, 2014 and July 22, 2014. It also alleges that Lippke possessed child pornography between Sept. 16, 2014 and Dec. 10, 2014 on various computers and computer-related media. Lippke is alleged to have committed the nine offenses in Bernalillo County, N.M.
If convicted on a distribution charge, Lippke faces a statutory mandatory minimum of 15 years and a maximum of 40 years in prison. If convicted on a possession charge, Lippke faces a statutory mandatory minimum of ten years to a maximum of 20 years in prison. Lippke also would be required to register as a sex offender. Lippke faces an enhanced sentence because he previously was convicted on a child pornography charge.
Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the Homeland Security Investigations and the New Mexico Office of the Attorney General, with assistance from the 2nd Judicial District Attorney’s Office. All three entities are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
The case is being prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement. This case was investigated by the ATF office in Albuquerque and APD.
The case also is brought 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.
Palm Beach County Residents Sentenced for Sex Trafficking of MinorsRead the Press Release
Two Palm Beach County residents received 27 and 15 year prison sentences following their jury trial convictions for sex trafficking of minors.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Dontavious M. Blake, 33, and Tara Jo Moore, 27, both of Palm Beach County, were sentenced to 324 months and 180 months’ imprisonment, respectively, by United States District Judge Kenneth A. Marra following their conviction on charges of sex trafficking of children, in violation of Title 18, United States Code, Sections 1591 and 594.
According to court records and trial testimony, this case stemmed from an investigation into the production of child pornography. During the investigation, a juvenile victim revealed that she had engaged in prostitution, at the age of 15, beginning in August of 2011 and continuing until December 2011. She had approximately 10 – 15 regular clients and worked in hotels in the Palm Beach County area. After further investigation, a second juvenile victim was identified and revealed that she had also engaged in prostitution, at the age of 16, beginning in July 2011 and continuing through October 2012. They worked for a pimp who they identified as Blake and his girlfriend Moore. Blake would post online escort advertisements with photographs of the minors on Backpage.com, which postings included a telephone number that belonged to him. Moore would answer the calls from the clients and negotiate a price for prostitution services and schedule a “date.” Once the negotiated price had been agreed upon, Blake would contact the minors and drive them to the hotel or location for the “date.” At the conclusion of the date, the minor would pay a portion of the proceeds to Blake including payment for a portion of the hotel room.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Lothrop Morris.
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
Pagans Motorcycle Club Members Convicted of Firearms ChargesRead the Press Release
Two members of the Pagans Motorcycle Club were convicted of firearms offenses at trial.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Special Agent in Charge George L. Piro, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo J. Barrera, Special Agent in Charge Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office, and Michelle Morris, Chief, Sebastian Police Department, made the announcement.
Richard Todd Badali, 52, of Castelberry, and Thomas Richard Laakmann, 60, of Orange City, were convicted of all charges following a jury trial in Fort Pierce, Florida, before Senior U.S. District Court Judge Donald L. Graham. Badali was convicted of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g) and sale of a firearm to a known convicted felon, in violation of Title 18, United States Code, Section 922(d). Laakmann was convicted of possession of a firearm, after having been convicted of a misdemeanor crime of domestic violence, in violation of Title 18, United States Code, Section 922(g)(9) and sale of a firearm to a known convicted felon, in violation of Title 18, United States Code, Section 922(d).
Badali and Laakmann will both be sentenced by Senior Judge Graham in Miami, Florida on a date not yet scheduled in September 2015. At sentencing, the defendants each face a maximum sentence of 20 years’ imprisonment.
According to court records and trial testimony, between August 9, 2011 and September 3, 2011, Badali agreed to sell a 9mm pistol to another Pagans Motorcycle Club member who was cooperating with the FBI. The cooperating source secretly recorded conversations with Badali and Laakmann regarding the sale of the firearm. Laakmann delivered the firearm to the cooperating source on September 3, 2011, at the Pagans’ clubhouse in Sebastian, Florida.
These charges were the result of a multi-year federal, state and local law enforcement task force operation targeting the Pagan’s Motorcycle Club. The operation resulted in the conviction of nine individuals for violations of federal firearms and narcotics laws.
U.S. Attorney Ferrer stated, “[T]his verdict reflects the commitment of this Office and our federal, state and local law enforcement partners in combatting the illegal trafficking in firearms.”
“This operation exemplifies the cooperation among federal, state and local agencies to target dangerous individuals who through illegal gun sales may threaten the safety of our communities,” stated St. Lucie County Sheriff Mascara.
Mr. Ferrer commended the investigative efforts of the FBI, ATF, St. Lucie County Sheriff’s Office Special Investigations Unit, Martin County Sheriff’s Office and Sebastian Police Department in Indian River County. The case was prosecuted by Assistant U.S. Attorney Russell R. Killinger and Special Assistant U.S. Attorney Ryan L. Butler.
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.
Orlando Man Sentenced to More Than Nine Years for Armed RobberyRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza today sentenced Joseph Michael Price (30, Orlando) to nine years and nine months in federal prison for aiding and abetting the robbery of a retail store, and aiding and abetting the use and carrying of a firearm during and in relation to that robbery. He was also ordered to serve a three-year term of supervision following his prison sentence.
Price pleaded guilty on March 13, 2015.
According to court documents, on the morning of January 30, 2014, Price and co-conspirator Darin Leon Givens robbed the CVS store located at 7655 West Colonial Drive in Orlando, Florida. Price and Givens approached the store wearing masks, where Givens accosted a CVS employee outside the store, grabbed her shoulder, and told her to come with him. The CVS employee took Givens to the store’s office where Price was waiting, banging on the office door, trying to get inside. Once another CVS employee opened the office door, Price and Givens rushed inside and ordered the employees to fill a bag with money. The robbers then fled with approximately $4,000.
Price and Givens also robbed the same CVS store on January 20, 2014, stealing approximately $2,400.
On August 18, 2014, U.S. District Judge Roy B. Dalton, Jr. sentenced Givens to nine years in federal prison, followed by three years supervised release, for his participation in an unrelated commercial armed robbery.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.
Orlando Man Sentenced to More Than 10 Years for Armed RobberyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Brandon Maurice Long (24, Orlando) to 10 years and 10 months in federal prison for the robbery of a convenience store, and brandishing a firearm during and in relation to that robbery. The Court also ordered him to forfeit the firearms and ammunition involved in the robbery. Long pleaded guilty on April 28, 2015.
According to court documents, on the night of December 28, 2014, Long and co-defendant Dontreaun Tremayne Alexander robbed the Circle K located at 7530 Forest City Road in Orlando, Florida. Long and Alexander entered the store with their faces covered and demanded that the store cashier open the safe. Both men were carrying guns. When the cashier was unable to open the safe, Alexander threatened to shoot her. The robbery was recorded by store video and audio surveillance. Long was apprehended at the scene and Alexander fled.
The case against Alexander is currently pending.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Vincent S. Chiu and Kara M. Wick.
Operators of Atlanta Stores Enter Guilty Pleas to WIC and SNAP FraudRead the Press Release
ATLANTA - Rodney Byrd and Reginald Byrd have pleaded guilty to conspiring to commit food stamp fraud. The defendants used a series of stores in the Atlanta area to unlawfully purchase over $5.7 million in vouchers of the Georgia Women, Infants and Children (“WIC”) program and debit cards of the Supplemental Nutrition Assistance Program (“SNAP”).
“These defendants stole from a program designed to provide nutritional items to needy members of our community,” said Acting U.S. Attorney John Horn. “The scheme induced customers to forego infant formula and other necessary products in exchange for cash at less than face value of the vouchers. They put their own financial profit above the physical needs of low-income mothers and children.”
“The individuals who choose to defraud taxpayers through trafficking schemes will continue to be aggressively investigated by USDA-OIG and its law enforcement partners. Greed and arrogance drives people like the Byrds’ to feel like they are undetectable in a system where thousands of stores participate in assistance programs like SNAP and WIC. Their guilty plea should be a warning to others that you will be caught, and you will be prosecuted,” stated Karen Citizen-Wilcox, Special Agent-in-Charge with USDA-OIG- Investigations.
“The integrity of the WIC and SNAP programs must be protected from fraud and abuse by the vendors who seek to illegally profit by violating the standards established for these programs,” stated Veronica F. Hyman-Pillot, IRS Criminal Investigation, Special Agent in Charge. “This was a case of greed, deceit, manipulation and theft directed by the Byrd brothers in order to enrich themselves with ill-gotten gains. The North Georgia Financial Task Force are proud to contribute their financial expertise in unraveling financial transactions to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Rodney Byrd owned and operated Atlanta metropolitan-area stores named “Tweet Baby Tweet,” “Chicos and Chicas Variety Store,” and “Tweets, Treats, and Nic Nacs.” Reginald Byrd managed at least one of these stores. The defendants directed employees of the stores to make cash payments to customers in return for the customers’ WIC vouchers and for the use of the customers’ SNAP debit cards, in violation of the terms of the WIC program and SNAP. The cash payments were at amounts of less than face value, allowing the defendants to generate substantial profits when exchanging the vouchers.
As a result, tens of thousands of WIC vouchers totaling millions of dollars were deposited into bank accounts under the control of Rodney Byrd. A large number of these vouchers were for prescribed infant formula that is supposed to be given to malnourished infants or infants who cannot use traditional formula. Instead of selling products such as this to needy recipients, the defendants and their co-conspirators unlawfully purchased the vouchers for cash. All told, this scheme resulted in an estimated loss to the government of $5,747,817.18.
Sentencing for Rodney Byrd, 39, of Lawrenceville, Ga., and Reginald Byrd, 38, of College Park, Ga., is scheduled for October 13, 2015, at 2:00 p.m., before United States District Judge Leigh Martin May.
This case is being investigated by the United States Department of Agriculture, Office of the Inspector General, and Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Thomas J. Krepp and Jamie L. Mickelson are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Omaha Man Sentenced for Bank RobberiesRead the Press Release
United States Attorney Deborah R. Gilg announced that Kevin M. Lee, age 38, of Omaha, Nebraska, was sentenced to four years, nine months imprisonment by the Honorable Lyle E Strom, after having previously pled guilty to two bank robberies. He was also ordered to pay $1,400.00 in restitution and will be required to serve a three year term of supervised release after his release from prison.
On November 17, 2014, Lee went into the American National Bank at 1412 Harney Street, Omaha, and passed a note to the teller demanding $500. On November 18, 2014, he went to the U.S. Bank at 222 South 72nd Street, Omaha, and passed a similar note demanding $900. Law enforcement had contact with him on November 20 on a matter unrelated to the robberies. Agents were able to identify him in connection with the crimes based in part on tattoos on his fingers that matched surveillance pictures of him from the U.S. Bank robbery.
The case was investigated by the Omaha Police Department and Federal Bureau of Investigation.
Oakley Man Sentenced to 15 Years in Federal Prison for Attempted Sexual Exploitation of a Minor ChildRead the Press Release
POCATELLO - Ray Carl Short, 67, of Oakley, Idaho, was sentenced today to 180 months for attempting to produce sexually explicit videos and still images of a minor child, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Short to forfeit the camera and computer equipment used to commit the offense.
Short pleaded guilty on January 15, 2015 to attempted sexual exploitation of a minor. According to the plea agreement, an undercover special agent with Homeland Security Investigations downloaded 26 sexually exploitative images and videos of minors from Short in January 2014. In July, law enforcement agents searched Short’s residence pursuant to a federal search warrant and seized a laptop computer, a Brickhouse Security camera, and other related items. A forensic analysis of the laptop and other electronic media revealed approximately 2,934 images and 144 video files of suspected child pornography. When these images and video files were sent to the National Center for Missing and Exploited Children, it identified victims in 345 of the images and 16 of the video files.
In a folder located on Short’s computer’s hard drive, law enforcement agents observed six video files and nine image files of an additional minor victim, several of which contained sexually exploitative content. Yet more sexually exploitative videos and images of the victim were located in sub-folders.
On the day law enforcement agents executed the search warrant, Short admitted to having downloaded and received images that would be illegal or constitute child pornography and that there were images of child pornography on his laptop. In court, Short also admitted that he placed the Brickhouse camera in hidden locations in order to use the victim to take part in sexually explicit conduct for the purpose of producing visual depictions of that conduct.
The case was investigated by the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), with the assistance of the Cassia County Sheriff’s Office and Cassia County Prosecutor’s Office.
"Tragically, each time sexually explicit photos and videos of minors are downloaded, the young people shown are victimized again," said Bradford Bench, special agent in charge for ICE HSI in Seattle, Wash. "This sentencing clearly demonstrates the consequences facing those who are attempting to produce sexually explicit images and videos of minor children. ICE Homeland Security Investigations will continue to use every tool at its disposal to keep our children safe and ensure child predators are brought to justice."
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Oakland Man Found Guilty of Murder in Christmas Marijuana Robbery Near Oakland AirportRead the Press Release
OAKLAND – Earlier today, a federal jury convicted Damion Sleugh of six felonies, including first degree murder, robbery, and drug conspiracy, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson. The charges stemmed from a robbery and shooting in a parking lot near the Oakland Airport three days before Christmas in 2013.
Evidence at trial showed that Sleugh, 28, of Oakland, helped arrange a meeting to purchase five pounds of marijuana. In the early afternoon of December 22, 2013, Sleugh met with Vincent Muzac, 24, of Alameda, in the parking lot of a Walmart store near Hegenberger Road and Interstate 880 in Oakland. Surveillance video showed Mr. Muzac enter a car where he remained for four minutes before he was robbed and shot. His body was seen lying on the ground as the car sped away. A joint investigation by the FBI and the Oakland Police Department revealed that Sleugh was the driver. The evidence submitted at trial included incriminating text messages, FBI crime scene recreations, and images of Sleugh with the stolen marijuana. The photographs of Sleugh included a “selfie” taken from Sleugh’s phone two hours after the shooting; in the photograph, Sleugh is pictured in the same passenger seat where Mr. Muzac had just been shot. On March 27, 2014, Sleugh was indicted in a six-count indictment charging him with conspiracy and attempt to possess with the intent to distribute marijuana, in violation of 21 U.S.C. § 841; robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951(a); the use of a firearm during a drug trafficking crime or a crime of violence, in violation of 18 U.S.C. § 924(c); the use of a firearm during a drug trafficking crime or a crime of violence resulting in murder, in violation of 18 U.S.C. § 924 (j); and being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g).
The jury convicted Sleugh of all six counts in the indictment. The verdict also included a special finding that Sleugh committed first degree murder. The guilty verdict followed a two-week jury trial before the Honorable Yvonne Gonzalez-Rogers, U.S. District Judge.
Sleugh’s sentencing hearing is scheduled for November 4, 2015, in Oakland before Judge Gonzalez-Rogers. Sleugh faces up to a life sentence for first degree murder. Sleugh’s sentence also may include a 10-year prison term for discharging a firearm during a crime of violence or drug-trafficking crime. 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 United States Attorneys Damali Taylor and Joseph Alioto Jr. prosecuted the case, along with paralegals Patty Lau and Christine Tian. The prosecution is the result of an investigation led by Special Agent Russ Nimmo of the Federal Bureau of Investigation and detectives Randy Brandwood and Phong Tran of the Oakland Police Department.
North Haven Man Sentenced to More Than 3 Years in Federal Prison for Traffiicking Prescription NarcoticsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRIAN EARL, 40, of North Haven, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 37 months of imprisonment, followed by three years of supervised release, for trafficking prescription narcotics.
According to court documents and statements made in court, in May 2013, the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Ansonia Police Department initiated an investigation into James Costanzo, who had been identified as an illegal distributor of narcotic pharmaceuticals in Ansonia. The investigation, which included multiple controlled purchases of oxycodone and the use of electronic surveillance, revealed that Costanzo sold prescription narcotics to numerous customers from his Dwight Street residence. The investigation further revealed that EARL supplied Costanzo with large quantities of oxycodone and other prescription narcotics, and also sold drugs to his own customers.
EARL and Costanzo were arrested on January 23, 2014.
At the time of his arrest, EARL possessed $2,557 in cash, and a search of his North Haven residence revealed approximately 11,000 prescription pills, including oxycodone and oxymorphone.
On February 17, 2015, EARL pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone and oxymorphone.
On February 27, 2015, Costanzo pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone and oxymorphone, and one count of knowingly engaging in a monetary transaction involving criminally derived property. He is detained while awaiting sentencing.
This investigation has been conducted by the DEA’s New Haven Tactical Diversion Squad, the Ansonia Police Department and the Fairfield Police Department. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Michael E. Runowicz.
New Yorker Marcus Delille Pleads Not Guilty to Possessing Counterfeit Credit Cards and Driver's LicensesRead the Press Release
The United States Attorney for the District of Vermont announced that Marcus Delille, 26, of Brooklyn, New York, pleaded not guilty today in United States District Court in Burlington to possessing counterfeit credit cards and identification documents. U.S. Magistrate Judge John M. Conroy released Delille on conditions pending trial, which has not been scheduled.
On June 17, 2015, a federal grand jury in Rutland returned a two-count indictment charging Delille with fraudulently possessing 15 or more counterfeit access devices and unlawfully possessing five or more false identification documents. According to court records, Delille was stopped for speeding by a Vermont State trooper on April 23, 2015 just north of Brattleboro. During the course of the traffic stop, the trooper discovered that Delille had in the rental car he was driving and on his person about forty counterfeit credit cards that had not been issued to him, as well as counterfeit driver's licenses which appeared to have been issued by California, Texas, Pennsylvania and Illinois. Delille was originally charged in state court with identity theft but those charges were dismissed after the federal indictment was returned.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Delille faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Delille is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
New Hampshire Man Sentenced to Prison for Conspiracy to File False Tax Returns in Connection to a Fraud Against a Dubuque College BookstoreRead the Press Release
On Thursday, July 16, 2015, a New Hampshire man who filed false tax returns was sentenced to a year in federal Prison.
Thomas DeFelice, age 37, was sentenced to 12 months in prison in federal court in Cedar Rapids. His case was connected to that of James Spaulding, age 35, from Longmont, Colorado, who was previously convicted of one count of mail fraud and two counts of filing false tax returns, and sentenced to 57 months in federal prison.
In plea agreements, Spaulding and DeFelice admitted Spaulding was the director of the Clarke University Bookstore between 2011 and 2012. Spaulding and DeFelice created a fictitious corporation called RVP Wholesale Books (“RVP”), then caused RVP to issue false invoices to Clarke University purporting to show that RVP supplied the Clarke University bookstore with books. In truth, RVP never supplied the Clarke University bookstore with any books. Spaulding and DeFelice split the proceeds of the fraud, totaling more than $302,000.00. Spaulding convinced DeFelice that there were, in fact, books purchased through RVP and delivered to Clarke University. DeFelice agreed with Spaulding, however, to falsely inflate the purported cost of goods sold so as to fraudulently decrease RVP’s and their personal tax liabilities. Spaulding and DeFelice therefore filed false tax returns for 2011 and 2012 in which they failed to disclose the illegal proceeds obtained from the fraud. Spaulding later lied to a federal grand jury in Cedar Rapids, Iowa, by falsely claiming RVP supplied the Clarke University bookstore with books.
DeFelice was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. DeFelice was sentenced to 12 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to pay all taxes and penalties owed in connection with the false tax returns. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. DeFelice was permitted to self-surrender to a federal prison at a later date.
The cases were prosecuted by Assistant United States Attorney C.J. Williams and were investigated by the Dubuque Police Department and the Internal Revenue Service Criminal Investigation Division.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are 14-CR-1022-LRR for Spaulding and 15-CR-1005-LRR for DeFelice.
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New Hampshire Man Pleads Guilty to Being A Felon in Possession of FirearmsRead the Press Release
CONCORD, N.H. – Nicholas Rogers, 25, of Hooksett, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to being a felon in possession of firearms, announced Acting United States Attorney Donald Feith.
On November 14, 2014, Rogers pleaded guilty to in the United States District Court to one count of unlicensed firearms dealing and one count of making a false statement during the acquisition of a firearm. The court’s acceptance of Rogers’ guilty plea rendered Rogers a felon who was prohibited from possessing a firearm. He was scheduled to be sentenced in May 2015. However, prior to his sentencing and despite his felony status, in April 2015 Rogers used an online classified website to trade and purchase firearms. During one of these exchanges, Rogers attempted to sell a firearm to an undercover ATF agent.
A subsequent investigation revealed that from March 19, 2015 through April 11, 2015, Rogers traded or purchased five firearms from four different individuals through the online website. In addition, on April 17, 2015, ATF executed a search warrant at Roger’s residence and recovered a Norinco, SKS Model, 7.62 caliber rifle.
“The United States Attorney’s Office will work with law enforcement to identify, investigate and prosecute those who would violate the nation’s gun laws,” said Acting United States Attorney Donald Feith. “This case serves as an example of how the private trading of firearms can thwart the systems put in place to keep firearms out of the hands of criminals. We will continue to aggressively prosecute those who illegally possess firearms.”
"ATF is committed to combating illegal firearms trafficking whether it’s online or on the street. Illegal firearms trafficking puts public safety at risk and our goal is to keep guns out of the hands of criminals," stated ATF Boston Field Division Special Agent in Charge, Daniel J. Kumor.
Rogers faces a maximum sentence of ten years imprisonment. Rogers is scheduled to be sentenced on September 11, 2015. Rogers was detained pending sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
New Hampshire Man Charged with Computer Hacking and Cyberstalking in “Sextortion” Scheme Targeting MinorsRead the Press Release
WASHINGTON – A New Hampshire man was charged with remotely hacking into the social media, email and online shopping accounts of almost a dozen minor females and threatening that he would delete, deface, and make purchases from the accounts unless the victims sent him sexually explicit photographs of themselves.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Donald Feith of the District of New Hampshire and Special Agent in Charge Lisa A. Quinn of the U.S. Secret Service’s Boston Field Office made the announcement.
“Predators troll the Internet in search of vulnerable children to extort for their own sexual gratification,” said Assistant Attorney General Caldwell. “The Criminal Division and our law enforcement partners are committed to protecting our youth from sextortion and to finding and prosecuting wrongdoers lurking in the shadows of the Internet.”
“Individuals who would take advantage of today’s modern technologies to entice and then threaten minors deserve special investigative and prosecutorial attention,” said Acting U.S. Attorney Feith. “We will continue to work with law enforcement, technology specialists and education professionals to teach minors about the dangers of placing personal information in social media and the need to report threats of this nature so that we may bring these predators to justice.”
“Child sexual exploitation is an alarming problem in our society,” said Special Agent in Charge Quinn. “The Secret Service is committed to work closely with our law enforcement partners to identify and prosecute these predators.”
Ryan J. Vallee, 21, of Franklin, New Hampshire, was charged by indictment with 10 counts of making interstate threats, two counts of computer hacking to steal information, seven counts of computer hacking to extort and seven counts of aggravated identity theft. Vallee is scheduled to make his initial appearance at 4:30 p.m. EDT in the District of New Hampshire.
According to the indictment, from 2012 through November 2013, Vallee, using various aliases that included “Seth Williams” and “James McRow,” engaged in a computer hacking and “sextortion” campaign designed to coerce numerous minor females to provide him with sexually explicit photographs of themselves. He allegedly hacked into and took control of the girls’ online accounts – including their e-mail, Facebook and Instagram accounts – and threatened to delete the accounts, and defaced the contents of some of the accounts. Vallee also allegedly hacked into the girls’ Amazon.com accounts and, using their stored payment card information and shipping addresses, ordered items of a sexual nature and had them shipped to the girls’ homes. Vallee also allegedly obtained sexually explicit photographs of the girls and their friends and distributed them to others.
The indictment alleges that, in conjunction with his harassment campaign, Vallee sent communications to his victims, usually using a text message spoofing or anonymizing service, threatening to continue his attacks unless the victims provided sexually explicit photographs of themselves. The indictment alleges that, when victims refused to comply with Vallee’s demands and begged him to leave them alone, Vallee responded with threats to inflict additional harm.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the U.S. Secret Service, with substantial assistance from the Belmont, New Hampshire, Police Department. The case is being prosecuted by Senior Trial Attorney Mona Sedky and Trial Attorney Sumon Dantiki of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.
Montana Man Sentenced to Prison for Telephone Billing SchemeRead the Press Release
MISSOULA – A federal judge sentenced Steven Vincent Sann, 61, of Stevensville, Montana, to two years in prison and one year of supervised release for orchestrating a nationwide scheme involving extra charges listed on land-line telephone bills. Sann was also ordered to forfeit $500,000, which he obtained from the scheme then transferred to his personal investment accounts. The sentencing follows an April 3, 2015, change of plea in which Sann pleaded guilty to wire fraud and money laundering charges. Chief District Court Judge Dana Christensen presided over the case, and sentenced Sann to 24 months in prison on each count, to run concurrently.
“Sann engaged in a complex manipulation of tens of thousands of consumers across the country,” said Montana U.S. Attorney Michael Cotter. “Through a long-term joint effort with our law enforcement partners, we have held this man accountable for his crimes and sent a shot across the bow warning others who would engage in similar conduct.”
In an Offer of Proof filed by Assistant United States Attorney Timothy J. Racicot, the government stated that if the case had proceeded to trial it would have presented evidence that Sann managed several companies (the “Sann Companies”) that were engaged in the business of marketing a stand-alone voicemail and fax service, using a practice known as Local Exchange Carrier (“LEC”) billing to collect for the service’s charges. Sann was the president, secretary, treasurer, and director of one of those companies, called Emerica Media Corporation (“Emerica”). The Sann Companies were incorporated in Nevada and most of them designated one person – either a relative or friend of Sann’s – to serve as president, secretary, treasurer, and director.
Utilizing LEC billing to collect for services has come under intense scrutiny over the past several years based on allegations that charges are placed on customers’ monthly bills without their knowledge or consent. The practice is known as cramming and involves the placement of unauthorized charges on residential land-line telephone bills. The unauthorized charging has has precipitated myriad changes in the industry. In order to place charges on land-line telephone bills for its services, the Sann Companies contracted with billing aggregators such as Transaction Clearing, which worked with the phone companies (LECs) to facilitate the placing of charges on the monthly phone bills of the Sann Companies’ customers.
Sann’s guilty pleas relate to misrepresentations he caused to be made to Transaction Clearing concerning customer complaints. Specifically, in March of 2010, Transaction Clearing defined what it considered a “cramming complaint.” The Sann Companies’ contracts with Transaction Clearing required them to report complaints meeting that definition on a monthly basis. The reporting obligation applied whether or not the complaint actually related to a customer being signed up for the service without their consent or knowledge, or was justified. If the complaints reached a certain threshold, the LECs and billing aggregators would require entities such as the Sann Companies to submit action plans in an effort to reduce the volume of complaints. If complaints persisted, the LECs could suspend the Sann Companies and terminate the billing arrangement.
The contracts also required each Transaction client, including the Sann Companies, to disclose the names of other companies or entities owned or controlled by that client’s officers or principals. In order to continue to receive revenue for the Sann Companies from Transaction Clearing, Sann and his agents failed to accurately report complaints meeting Transaction Clearing’s definition of cramming, and also failed to fully disclose Sann’s interest in the Sann Companies.
In relation to Sann’s wire fraud conviction, an employee of Emerica’s accounting firm in Montana, at the direction of Emerica in Montana, sent an email to Transaction Clearing in Texas on March 3, 2011, representing the Sann Companies had no complaints meeting Transaction Clearing’s definition of cramming during February 2011. In fact, the Sann Companies received approximately 479 complaints that met Transaction Clearing’s definition of cramming during February 2011. As it relates to the money laundering conviction, Sann transferred $100,000 from a bank account to a personal investment account on April 4, 2011. The money involved in that transfer was paid to the Sann Companies in connection with funds received from utilizing LEC billing and therefore was derived from Sann’s criminal wire fraud scheme.
Assistant U.S. Attorney Tim Racicot prosecuted the case, which was investigated by the FBI and IRS. Sann will have to serve at least 85% of his sentence before being released from federal prison.
Minnesota Woman and Iowa Man to Federal Prison for Iowa Meth ConspiracyRead the Press Release
A Minnesota woman and an Iowa man who conspired to distribute methamphetamine were sentenced to four and eleven years respectively in federal prison.
Jillian Preston, 36, from Herron Lake, Minnesota, received the prison term on July 9, 2015, after an April 17, 2015, guilty plea to conspiracy to distribute methamphetamine. Todd Daugherty, 52, from Spencer, Iowa, received the prison term on May 26, 2015, after a February 19, 2015, guilty plea to conspiracy to distribute methamphetamine.
At their guilty pleas, Preston and Daugherty each admitted that from 2013 through May 2014 they were involved in a conspiracy that distributed more than 50 grams of actual (pure) methamphetamine in the Spencer (Lakes), Iowa area. Preston obtained ¼ to ½ pound quantities from sources in Minnesota for distribution in Iowa. Daugherty obtained one ounce to ¼ pound quantities from Preston for further redistribution in Iowa. And four ounces of methamphetamine was seized from Daugherty (after he had received it from Preston) in a Minnesota traffic stop.
Preston and Daugherty were sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Preston was sentenced to 48 months’ imprisonment. Daugherty was sentenced to 132 months’ imprisonment. Each must pay a special assessment of $100 and each must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Preston and Daugherty are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Clay County Sheriff’s Office, Iowa Great Lakes Drug Task Force, Minnesota Bureau of Criminal Apprehension, Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, and the Minnesota State Patrol.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-4096 and CR14-4067.
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Medical Billing Manager Sentenced in Health Care Fraud CaseRead the Press Release
SYRACUSE, NEW YORK – Bonnie Meislin, 43, of Utica, was sentenced to fifteen months imprisonment to be followed by three years of supervised release, a fine of $2,400.00 and restitution to Medicare of $84,265.11 following her convictions for health care fraud and conspiracy, announced United States Attorney Richard S. Hartunian.
Meislin was employed as the billing manager for Upstate Pain Medicine, a medical practice owned by Mahesh Kuthuru, M.D, with offices in Fulton and Utica, New York. Following a six day trial in February 2015, Meislin was found guilty on 23 counts of health care fraud and 1 count of conspiring with Kuthuru to send false and fraudulent billings to Medicare. Evidence at trial showed that in 2009, Dr. Kuthuru moved to Las Vegas where he opened a medical practice known as Desert Pain Management. Thereafter, Kuthuru began to spend the majority of his time in Las Vegas, returning to his Utica and Fulton offices only sporadically. From January 2010 through September 2011, Meislin and Kuthuru submitted false and fraudulent bills to Medicare which indicated that Kuthuru or another medical professional under his direct supervision had treated patients in the New York offices, when Kuthuru had not done so.
Mahesh Kuthuru, M.D. pled guilty to health care fraud and illegal distribution of prescriptions on January 22, 2015. He was sentenced on May 22, 2015 to serve 18 months imprisonment, 3 years of supervised release and restitution of $84,265.11 to Medicare.
"Protecting the integrity of the nation’s health care system by aggressively prosecuting those who defraud it is a high priority for my office. We will continue to pursue investigations and bring charges against people who prey upon the funds and procedures designed to serve patients and enhance the delivery of services by medical professionals," said United States Attorney Richard S. Hartunian.
The case was investigated by the Federal Bureau of Investigation ("FBI"), the Drug Enforcement Administration ("DEA"), the New York Department of Health, Bureau of Narcotic Enforcement, the Health and Human Services Department, the Worker’s Compensation Board, Office of Inspector General, Excellus Special Investigations Unit, Safeguard Services and MVP Health Care, Special Investigations Unit. The case was prosecuted by Assistant U.S. Attorney Edward R. Broton.
Medford Man Arrested for Impersonating a U.S. MarshalRead the Press Release
BOSTON - A Medford man was arrested today for impersonating a United States Marshal.
Gordon Malyerck, 68, was arrested and appeared in court today in connection with an incident in which he allegedly impersonated a United States Marshal on July 7, 2015, at Middlesex Fells Reservation. Charges were filed on July 15, and unsealed today after Malyerck’s arrest.
According to court documents, Malyerck, wearing a shirt with the USMS badge on the pocket, approached a Park Ranger and falsely identified himself as a Deputy U.S. Marshal. Without further inquiry from the Park Ranger, Malyerck produced his “USMS credentials” and claimed that he had recently been deputized as a U.S. Marshal at a ceremony in Washington, D.C. Malyerck, who carried an exposed .38 caliber handgun on his waistband at the time of the incident, suggested that Park Rangers be armed and deputized. Additionally, Malyerck noted that he had seen young women running around in the park and that he would take action if he observed an attack.
When approached by federal agents on July 14, Malyerck admitted to possessing credentials and advised law enforcement officials that he had been deputized by a Deputy U.S. Marshal in Baltimore. Law enforcement learned that the Baltimore agent had not “deputized” Malyerck, but had sent him an item with the U.S. Marshal insignia.
Malyerck was released with conditions and is set to appear in federal court on July 27 for a probable cause hearing.
United States Attorney Carmen M. Ortiz and United States Marshal John Gibbons made the announcement today.
The case is being prosecuted by Assistant United States Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Maryland Man Sentenced to 80 Months in Prison for Traffic Fatality in Downtown WashingtonRead the Press Release
WASHINGTON – James B. Chandler, Jr., 33, of Silver Spring, Md., was sentenced today to 80 months in prison on charges of voluntary manslaughter and driving under the influence of PCP, stemming from a crash that killed Philip D. Snodgrass, who was walking on a sidewalk in downtown Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Chandler pled guilty in April 2015, in the Superior Court of the District of Columbia, in an Alford plea. Under such a plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction; Chandler entered an Alford plea because of his intoxication by PCP at the time of the crash and his inability to recollect events. He has been in custody since his arrest. The Honorable Robert E. Morin sentenced him today. Following his prison term, Chandler will be placed on five years of supervised release.
“A bright young man was killed when this defendant careened through downtown D.C. at 60 miles per hour while high on PCP,” said Acting U.S. Attorney Cohen. “We see cases over and over again where drivers using PCP lose control with devastating consequences. We have to double down on our efforts to prevent these tragedies.”
According to the government’s evidence, on Monday, Feb. 23, 2015, at about 4:50 p.m., during downtown Washington’s rush hour, Chandler drove his SUV at a high rate of speed west on H Street NW, between 2nd and 4th Streets, striking two other vehicles without stopping. As Chandler approached the intersection with 4th Street NW, he crossed over into H Street’s eastbound lanes. Chandler crossed 4th Street and struck the southeast curb of the corner of 4th and H Streets, mounted the sidewalk and struck the retaining wall of the Government Accountability Office (GAO) building. By crashing into the wall, Chandler caused his SUV to flip and roll several times along the south sidewalk of the 400 block of H Street, striking and killing Mr. Snodgrass, 27, who had been walking on the sidewalk.
Mr. Snodgrass, who was assistant legal counsel for the National Federation of Federal Employees, was on his way to night classes at Georgetown University’s Law Center.
The District of Columbia Fire and Emergency Medical Services Department and the Metropolitan Police Department (MPD) arrived on the scene and removed Chandler from the wreck. Chandler admitted to a paramedic that he had smoked a PCP-laced cigarette that day.
Surveillance video, which captured footage of the crash, was examined and it was estimated that Chandler was driving at a speed approaching 60 mph in the 25 mph zone. The video, as well as examination of the crash scene, also indicated that Chandler never attempted to apply his brakes or take any action to avoid the crash.
Mr. Snodgrass was taken to the Washington Hospital Center, where he was pronounced dead. Chandler was taken to Howard University Hospital for treatment. While at the hospital, Chandler was examined by an officer with the MPD’s Driver Impairment Unit, who determined that Chandler was under the influence of a narcotic. Also while at the hospital, Chandler’s blood was drawn, which later tested positive for PCP.
In announcing the sentence, Acting U.S. Attorney Cohen praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit, the Driver Impairment Unit and the First District. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Jennifer Clark. Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
Martin County Resident Sentenced for Manufacturing Hash Oil in His Apartment Laboratory and Possessing a FirearmRead the Press Release
A Martin County resident was sentenced to 90 months in prison for manufacturing hash oil in his apartment laboratory and possessing a firearm.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, William D. Snyder, Sheriff, Martin County Sheriff’s Office, and David Dyess, Chief, Stuart Police Department, made the announcement.
Daniel Paul Vranich, 31, of Lake Park, was sentenced by United States District Court Judge Kenneth M. Mara, in Fort Pierce, to 30 months’ imprisonment for endangering human life while illegally manufacturing a controlled substance to run consecutive to a term of 60 months’ imprisonment for possession of a firearm in furtherance of a drug trafficking crime. Upon his release from incarceration, Vranich will be placed on supervised release for three years.
According to the stipulated factual basis in support of the defendant’s previous guilty plea, on December 30, 2014, at approximately 4:00 a.m., an emergency services call was made regarding an explosion at an apartment in Stuart, Florida. Members of the Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue, Stuart Fire Rescue and State Fire Marshal’s Office responded to the residence and discovered a smoldering fire, as well as a large industrial vacuum drying oven with a timing device. Stuart Police Department detectives also found numerous large glass cylinders containing marijuana, numerous empty butane cans, air pumps and compressors, a vacuum oven, wax paper with approximately 48 grams of butane hash oil, a food saver sealing machine, two digital scales, an electric grinder, a money counting machine, a vacuum chamber, and numerous containers and storage bags. In addition, law enforcement discovered a loaded Sig Sauer .45 caliber pistol and personal documents belonging to Vranich. DEA agents and members of the Hazardous Material Unit (Hazmat) determined that the discovered chemicals, equipment and other items were used to operate a butane hash oil laboratory in the residence. The investigation further revealed that Vranich resided in the apartment with his family.
The stipulated factual basis further indicates that Vranich admitted that he was manufacturing and possessing with the intent to distribute the controlled substances, identified as marijuana and hashish oil, and that he possessed the firearm in furtherance of his drug trafficking operation. Vranich also admitted that while manufacturing and attempting to manufacture hashish oil he created a substantial risk of harm to human life.
Hash oil is a highly potent derivative of marijuana, obtained by extracting the resins containing Tetrahydrocannabinol (THC), the active psychoactive compound, from marijuana buds and plant matter through a chemical process using materials and equipment like those found in Vranich’s apartment. Because the butane vapor created during the process is extremely volatile, highly flammable and large amounts are required in the process of extracting the resin from the raw marijuana, explosions and fires from accidents have resulted in the destruction of property, severe injuries and even death.
Mr. Ferrer commended the investigative efforts of the ATF, DEA, Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue, Stuart Fire Rescue and the State Fire Marshal’s Office. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Manhattan U.S. Attorney Announces the Arrest of Afghan Narcotics Traffickers for Conspiring to Import Heroin into the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mark Hamlet, Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), today announced the unsealing of an indictment charging HAJI LAJAWARD, AMAL SAID SAID ALAM SHAH, a/k/a “Haji Zar Mohammad,” and HABIBULLAH with conspiring to import heroin into the United States. LAJAWARD and SHAH were arrested in Thailand on June 13, 2015, and subsequently brought to the United States. They will be presented and arraigned before U.S. Magistrate Judge Ronald L. Ellis this afternoon. HABIBULLAH remains at large.
Manhattan U.S. Attorney Preet Bharara said: “At a time when heroin use and overdose deaths are on the rise in our communities, these three men allegedly conspired to import into this country kilogram quantities of heroin from Afghanistan. I want to thank the DEA for their excellent work in investigating this matter.”
DEA Special Agent in Charge Mark Hamlet said: “Like many international criminal networks, these alleged drug traffickers have no respect for borders, and no regard for either the rule of law or who they harm as a result of their criminal endeavors. This investigation highlights the significance of Afghanistan as a source for heroin around the world. I wish to thank all of our international law enforcement partners for their outstanding efforts and partnership in dismantling this sophisticated and dangerous international criminal enterprise.”
According to the allegations in the Indictment,[1] the defendants and others conspired between May 2014 and April 2015 to violate U.S. narcotics laws prohibiting the importation of heroin. Specifically, the Indictment charges LAJAWARD, SHAH, and HABIBULLAH with conspiring to (i) import one or more kilograms of heroin into the United States from a foreign country; and (ii) distribute one or more kilograms of heroin knowing and intending that it would be imported into the United States.
As alleged in the Indictment, on January 15, 2015, Lajaward caused the delivery of three kilograms of heroin to another individual in Kabul, Afghanistan, while, on the same day, Habibullah received payment for that heroin in the United Arab Emirates. Later that day, Lajaward and Shah spoke on the phone regarding the heroin transaction.
The charge in the Indictment carries a maximum penalty of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge
Mr. Bharara praised the outstanding investigative work of the DEA’s Special Operations Division; the DEA’s Kabul, Dubai, Tokyo, and Bangkok Country Offices; the DEA’s New York Field Division; the CNP-A Sensitive Investigative Unit of the Afghan Ministry of the Interior; the Dubai Police Department and the Anti-Narcotics Unit of the Emirati Ministry of Interior; Japan’s National Police Agency and the Saitama Prefectural Police; Thailand’s Sensitive Investigative Unit of the Royal Thai Police Narcotics Suppression Bureau; Thailand’s Attorney General’s Office; Thailand’s Ministry of Foreign Affairs; INTERPOL; the U.S. Department of State; and the U.S. Department of Justice Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney Brendan F. Quigley is in charge of the prosecution.
The charge contained in the Indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Man Previously Convicted of Drug Felony Sentenced for Methamphetamine ChargesRead the Press Release
A man who possessed with the intent to distribute methamphetamine was sentenced July 15, 2015, to 18 years in federal prison.
Kirk Anthony Bennett, age 43, from Charles City, Iowa, received the prison term after a January 16, 2015, guilty plea to possession with intent to distribute methamphetamine. Bennett was previously convicted of possession of a controlled substance in 2011.
At the guilty plea, Bennett admitted on September 2, 2014, he was in possession of ice methamphetamine which he intended to distribute. Bennett was found in possession of 123.11 grams of ice methamphetamine when a search warrant was executed after a controlled package delivery of ice methamphetamine was served at his residence.
Bennett was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Bennett was sentenced to 216 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
Bennett 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 Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-3053.
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Man Pleads Guilty to Tax Evasion for Not Reporting Income from Wire Fraud SchemeRead the Press Release
CONCORD, NEW HAMPSHIRE – William M. Richmond, 59, formerly of Atkinson, New Hampshire, pleaded guilty to three counts of tax evasion for failing to report substantial illicit income he received from a wire fraud scheme from 2006 through 2008, reports Acting United States Attorney Donald Feith.
From on or about May 18, 2005, through in and around April 2009, Richmond held a durable power of attorney to act for the benefit of Richard Piller. It gave him plenary power to manage Piller’s personal and business financial interests and obligations while Piller and his then wife, Joan Ettelson Piller (Ettelson), were out of the country for extended periods. Richmond used the Power of Attorney to perpetrate a wire fraud scheme through which he used Piller’s and Ettelson’s funds to pay his personal and business expenses. Richmond failed to disclose that criminally derived income on his tax returns for 2006, 2007, and 2008, and he failed to list the substantial additional taxes he owed for each year based on that income. Instead, Richmond falsely claimed that his only income was taxable interest and that he owed no taxes for each of the three years.
Richmond is facing a maximum sentence of five years in prison and a maximum fine of $250,000. Under the terms of a plea agreement, Richmond will also be ordered to pay restitution of an amount to be determined by the court to Richard Piller and Joan Ettelson. A sentencing hearing has been scheduled for November 3, 2015.
This case was investigated by special agents of the FBI and the IRS – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Mark S. Zuckerman.
Lynchburg Man Pleads Guilty to Child Pornography ChargeRead the Press Release
LYNCHBURG, VIRGINIA – A Colonel with the Virginia National Guard pled guilty this week in the United States District Court for the Western District of Virginia in Lynchburg to a federal child pornography charge.
Gary Williamson, 54, of Lynchburg, Va., waived his right to be indicted and pled guilty this week to a one-count Information charging him with knowingly receiving and distributing child pornography.
“Those who trade in this illicit material will continue to be held accountable,” Acting United States Attorney Anthony P. Giorno said today. “Protecting our children is Priority one for my office. Children are often the most vulnerable among us and we won’t hesitate to prosecute those whose actions are aimed at exploiting them.”
According to evidence presented at this week’s guilty plea hearing by Assistant United States Attorney Daniel Bubar, the Roanoke office of Homeland Security Investigations became aware of Williamson’s distribution of child pornography on October 14, 2014, through information gathered through an unrelated investigation of a website located outside the United States. In December 2014, Williamson was interviewed at his home and a search warrant was executed for various computers and media storage devices. During this search, Williamson admitted to controlling an email account and a username for the subject website that have been used to trade suspected child pornography. Subsequent forensic analysis of the defendant’s computer and other media storage devices showed he possessed more than 2,000 images of child pornography, many of which he distributed via the subject website bulletin boards and email.
At sentencing, Williamson faces a mandatory minimum sentence of five years in prison and a maximum possible penalty of up to twenty years in prison.
The investigation of the case was conducted by the Homeland Security Investigations, Roanoke Office and the Virginia Attorney General’s Office. Assistant United States Attorney Daniel Bubar is prosecuting the case for the United States.
Louis Berger International Resolves Foreign Bribery ChargesRead the Press Release
Two Former Company Executives Plead Guilty to Participating In Bribery Scheme
Louis Berger International Inc. (LBI), a New Jersey-based construction management company admitted to violations of the Foreign Corrupt Practices Act (FCPA) and agreed to pay a $17.1 million criminal penalty to resolve charges that it bribed foreign officials in India, Indonesia, Vietnam and Kuwait to secure government construction management contracts. Two of the company’s former executives also pleaded guilty to conspiracy and FCPA charges in connection with the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division made the announcement.
LBI entered into a deferred prosecution agreement (DPA) today and admitted its criminal conduct, including its conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to the DPA, LBI has agreed to pay a $17.1 million criminal penalty, to implement rigorous internal controls, to continue to cooperate fully with the department and to retain a compliance monitor for at least three years.
Richard Hirsch, 61, of Makaati, Philippines, and James McClung, 59, of Dubai, United Arab Emirates, each pleaded guilty to one count of conspiracy to violate the FCPA and one substantive count of violating the FCPA. Hirsch previously served as the Senior Vice President responsible for the company’s operations in Indonesia, Thailand, the Philippines and Vietnam. McClung previously served as the Senior Vice President responsible for the company’s operations in India and, subsequent to Hirsch, in Vietnam. The sentencing hearings for Hirsch and McClung are scheduled for Nov. 5, 2015.
According to admissions in the DPA and statements in the charging documents, from 1998 through 2010, the company and its employees, including Hirsch and McClung, orchestrated $3.9 million in bribe payments to foreign officials in various countries in order to secure government contracts. To conceal the payments, the co-conspirators made payments under the guise of “commitment fees,” “counterpart per diems,” and other payments to third-party vendors. In reality, the payments were intended to fund bribes to foreign officials who had awarded contracts to LBI or who supervised LBI’s work on contracts.
Among other factors, in entering into a DPA in this case, the government considered: (1) LBI’s self-reporting of the misconduct; (2) the company’s cooperation, including voluntarily making both U.S. and foreign employees available for interviews, and collecting, analyzing and organizing evidence and information for federal investigators; (3) the company’s extensive remediation, including terminating the officers and employees responsible for the corrupt payments; and (4) the company’s demonstrated commitment to improving its compliance program and internal controls.
This case was investigated by the FBI’s Newark Division. This is being prosecuted by Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Thomas J. Eicher and Scott B. McBride of the District of New Jersey. The Criminal Division’s Office of International Affairs also provided assistance.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Louis Berger International Complaint
Louis Berger International Continuance & DPA
Louis Berger International Resolves Foreign Bribery ChargesRead the Press Release
Two Former Company Executives Plead Guilty to Participating In Bribery Scheme
NEWARK, N.J. – Louis Berger International Inc. (LBI), a New Jersey-based construction management company, admitted to violations of the Foreign Corrupt Practices Act (FCPA) and agreed to pay a $17.1 million criminal penalty to resolve charges that it bribed foreign officials in India, Indonesia, Vietnam and Kuwait to secure government construction management contracts. Two of the company’s former executives also pleaded guilty today to conspiracy and FCPA charges in connection with the scheme.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division made the announcement.
LBI entered into a deferred prosecution agreement (DPA) today and admitted its criminal conduct, including its conspiracy to violate the anti-bribery provisions of the FCPA. LBI has agreed to pay a $17.1 million criminal penalty, to implement rigorous internal controls, to continue to cooperate fully with the department and to retain a compliance monitor for at least three years.
Richard Hirsch, 61, of Manila, Philippines, and James McClung, 59, of Dubai, United Arab Emirates, each pleaded guilty to one count of conspiracy to violate the FCPA and one substantive count of violating the FCPA.Hirsch previously served as the senior vice president responsible for the company’s operations in Indonesia, Thailand, the Philippines and Vietnam.McClung previously served as the senior vice president responsible for the company’s operations in India and, subsequent to Hirsch, in Vietnam.The sentencing hearings for Hirsch and McClung are scheduled for Nov. 5, 2015.
According to admissions in the DPA and statements in the charging documents:
From 1998 through 2010, the company and its employees, including Hirsch and McClung, orchestrated $3.9 million in bribe payments to foreign officials in various countries in order to secure government contracts.To conceal the payments, the conspirators made payments under the guise of “commitment fees,” “counterpart per diems,” and other payments to third-party vendors.In reality, the payments were intended to fund bribes to foreign officials who had awarded contracts to LBI or who supervised LBI’s work on contracts.
Among other factors, in entering into a DPA in this case, the government considered: (1) LBI’s self-reporting of the misconduct; (2) the company’s cooperation, including voluntarily making both U.S. and foreign employees available for interviews, and collecting, analyzing and organizing evidence and information for federal investigators; (3) the company’s extensive remediation, including terminating the officers and employees responsible for the corrupt payments; and (4) the company’s demonstrated commitment to improving its compliance program and internal controls.
This case was investigated by the FBI’s Newark Division and criminal investigators with the U.S. Attorney’s Office, District of New Jersey. The government is represented by Assistant U.S. Attorneys Thomas J. Eicher and Scott B. McBride of the District of New Jersey and Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section.The Criminal Division’s Office of International Affairs also provided assistance.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .
Lodi Man Sentenced to 9 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Jose Millan, 51, of Lodi, was sentenced today by United States District Judge Garland E. Burrell Jr. to nine years in prison for possessing almost 10 pounds of methamphetamine with the intent to distribute it, United States Attorney Benjamin B. Wagner announced.
According to court documents, in May of 2014, Millan told a confidential informant that he knew people who received regularly scheduled deliveries of methamphetamine from Mexico, and that multiple pounds of methamphetamine were being stored in Lodi. Later that month, officers saw Millan and a co-defendant walk into Millan’s garage and depart shortly afterward carrying an ice chest, which they loaded into the trunk of a car. They drove the car to the parking lot of a restaurant in Lodi, where the confidential informant had arranged to meet Millan. Officers arrested Millan and the co-defendant without incident. In the ice chest in Millan’s car, officers found 4.4 kilograms of methamphetamine.
“Today’s prison sentence is a reminder of the serious consequences drug traffickers face for trying to bring illicit drugs into our communities,” said Ray Greenlee, assistant special agent in charge for HSI Sacramento. “ICE remains committed to dismantling the international drug trade while ensuring that those who are involved don’t benefit financially.”
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lodi Police Department. Special Assistant United States Attorney Josh F. Sigal prosecuted the case.
Millan remains in federal custody. His co-defendant, Miguel Rodriguez, is scheduled to be sentenced on July 31, 2015, in Sacramento before Judge Burrell.
Lincoln Man Sentenced for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg and Nebraska Attorney General Doug Peterson announced that Scott N. O'Leary, 20, of Lincoln, Nebraska, was sentenced on July 17, 2015 in Lincoln, Nebraska, to 144 months in prison by Senior United States District Judge Richard G. Kopf, for receipt of child pornography. Additionally, once released from federal prison, O'Leary will be on supervised release for 15 years and will be required to register as a sex offender.
In August of 2010, the National Center for Missing and Exploited Children reported a CyberTip to the Nebraska State Patrol regarding child pornography that had been uploaded to a social media account on the internet. In June of 2012, another CyberTip was reported to the Nebraska State Patrol regarding child pornography that had been uploaded to another social media account. Both of those CyberTips were associated with accounts listed under a female’s name.
Nebraska State Patrol investigators were able to trace the IP address of the computer associated with those accounts, and through further investigation, determined that Scott N. O’Leary was the suspected offender.
State Patrol investigators determined that O’Leary had created the fictional accounts in question. O'Leary created several accounts on various websites and social networks under the female pseudonym. He had used the fictional persona to communicate with young boys ranging in age from 12 to 17. O'Leary solicited and received naked images from approximately half the boys he had been in contact with. He also used bribes and threats to obtain images.
In addition to soliciting naked images from young boys, O’Leary uploaded images of at least one victim to a website known for the exchange of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol with assistance from the Department of Homeland Security. The case was jointly prosecuted by the U.S. Attorney’s Office and the Nebraska Attorney General’s Office.