Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
8 July 2015
Estonian National Pleads Guilty in Manhattan Federal Court to Charges Arising from Massive Cyber Fraud Scheme That Infected Millions of Computers WorldwideRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that VLADIMIR TSASTSIN pled guilty to wire fraud and computer intrusion charges arising from his operation of a massive and sophisticated Internet fraud scheme that infected with malware more than four million computers located in over 100 countries. The malware secretly altered the settings on infected computers, enabling TSASTSIN and the six other charged defendants – Timur Gerassimenko, Dmitri Jegorov, Valeri Aleksejev, Konstantin Poltev, Andrey Taame, and Anton Ivanov – to digitally hijack Internet searches, re-route computers to certain websites and advertisements, and receive payment for the hijacked Internet traffic. TSASTSIN pled guilty today to one count of conspiracy to commit wire fraud and one count of conspiracy to commit computer intrusion before U.S. Magistrate Judge Michael H. Dolinger. Sentencing is scheduled for October 14, 2015, before U.S. District Judge Lewis A. Kaplan.
Manhattan U.S. Attorney Preet Bharara said: “Vladimir Tsastsin has admitted to his role in a massive cyber hack and fraud scheme that infected millions of computers in over one hundred countries and netted Tsastsin and his co-conspirators over fourteen million dollars. Today’s guilty plea highlights not just the international scope of the threat posed by cyber criminals, but also the global reach of this Office and our law enforcement partners here and around the world to track down and prevent such criminals.”
According to the Indictment and other court documents previously filed in Manhattan federal court, and today’s plea proceeding:
From 2007 until October 2011, TSASTSIN, Gerassimenko, Jegorov, Aleksejev, Poltev, Taame, and Ivanov controlled and operated various companies that masqueraded as legitimate publisher networks (the “Publisher Networks”) in the Internet advertising industry. The Publisher Networks entered into agreements with ad brokers under which they were paid based on the number of times Internet users clicked on the links for certain websites or advertisements, or based on the number of times certain advertisements were displayed on certain websites. Thus, the more traffic that went to the advertisers’ websites and display ads, the more money the defendants earned under their agreements with the ad brokers. The defendants fraudulently increased the traffic to the websites and advertisements that would earn them money and made it appear to advertisers that the Internet traffic came from legitimate clicks and ad displays on the defendants’ Publisher Networks when, in actuality, it had not.
To carry out the scheme, the defendants and their co-conspirators used what are known as “rogue” Domain Name System (“DNS”) servers, and malware (“the Malware”) that was designed to alter the DNS server settings on infected computers. Victims’ computers became infected with the Malware when they visited certain websites or downloaded certain software to view videos online. The Malware altered the DNS server settings on victims’ computers to route the infected computers to rogue DNS servers controlled and operated by the defendants and their co-conspirators. The re-routing took two forms that are described in detail below: “click hijacking” and “advertising replacement fraud.” The Malware also prevented the infected computers from receiving anti-virus software updates or operating system updates that otherwise might have detected the Malware and stopped it. In addition, the infected computers were also left vulnerable to infections by other viruses.
Click Hijacking
When the user of an infected computer clicked on a search result link displayed through a search engine query, the Malware caused the computer to be re-routed to a different website. Instead of being brought to the website to which the user asked to go, the user was brought to a website designated by the defendants. Each “click” triggered payment to the defendants under their advertising agreements. This click hijacking occurred for clicks on unpaid links that appeared in response to a user’s query as well as clicks on “sponsored” links or advertisements that appeared in response to a user’s query – often at the top of, or to the right of, the search results – thus causing the search engines to lose money. For example, when the user of an infected computer clicked on the domain name link for the official website of Apple-iTunes, the user was instead taken to a website for a business unaffiliated with Apple Inc. that purported to sell Apple software.
Advertising Replacement Fraud
Using the DNS changer Malware and rogue DNS servers, the defendants also replaced legitimate advertisements on websites with substituted advertisements that triggered payments to the defendants. For example, when the user of an infected computer visited the home page of the Wall Street Journal, a featured advertisement for the American Express “Plum Card” had been fraudulently replaced with an ad for “Fashion Girl LA.”
The defendants earned millions of dollars under their advertising agreements, not by legitimately displaying advertisements through their Publisher Networks, but rather by using the Malware to fraudulently drive Internet traffic to the websites and ads that would earn them more money. As a result, the defendants and their co-conspirators earned at least $14 million in ill-gotten gains through click hijacking and advertisement replacement fraud. The defendants laundered the proceeds of the scheme through numerous companies including, among others, Rove Digital, an Estonian corporation, and others listed in the Indictment.
* * *
TSASTSIN, 35, of Estonia, faces a maximum sentence of 20 years in prison on the wire fraud conspiracy count and five years in prison on the computer intrusion conspiracy count. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Estonian nationals Gerassimenko, Jegorov, Poltev, and Aleksejev have each pled guilty to the same wire fraud and computer intrusion conspiracy counts.Aleksejev was sentenced to 48 months in prison.Ivanov pled guilty to all charges and was sentenced to time served.Judge Kaplan has scheduled the sentencings of Gerassimenko, Jegorov and Poltev for July 23, 2015. The last defendant, Taame, who is a Russian national, remains at large. The charges against Taame are merely accusations and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the National Aeronautics and Space Administration-Office of the Inspector General, and the Estonian National Police and Border Guard Board.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah Lai and Alexander Wilson are in charge of the prosecution.
Doctor Sentenced to 63 Months in Prison for Accepting $1.8 Million in Bribes for Test ReferralsRead the Press Release
A Morris County, New Jersey, doctor was sentenced today to 63 months in prison for accepting $1.8 million in bribes to refer millions of dollars in business to Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, as part of a long-running scheme operated by the lab, its president and numerous associates, U.S. Attorney Paul J. Fishman for the District of New Jersey announced.
Frank Santangelo, 45, of Boonton, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with violating the Travel Act, money laundering and failing to file tax returns. Judge Chesler imposed the sentence today in Newark federal court.
“Santangelo admitted he violated the trust of his patients, who should be able to count on their doctors’ prescribing only tests that are necessary and recommending providers based solely on their qualifications,” U.S. Attorney Fishman said. “This type of fraud compromises patient care and drives up the cost of health care.”
“Today’s sentencing of Frank Santangelo is the result of a long-term, multi-agency investigation into a complex health care fraud scheme which involved millions of dollars,” said Special Agent in Charge Richard M. Frankel of the Newark Division for the FBI. “Santangelo’s arrest and sentencing send the message the FBI and its law enforcement partners will continue to zealously investigate these fraud and abuse schemes, which divert critical resources from of our already overburdened health care system and contribute exponentially to the rising cost of health care.”
Including Santangelo, 38 people, 26 of them doctors, have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.
According to documents filed in this and other cases and statements made in court: Santangelo, who has offices in Montville, New Jersey, and Wayne, New Jersey, received more than $1.8 million in bribe payments from BLS for referrals for which the lab was paid more than $6 million by Medicare and various insurance companies. After receiving more than $800,000 from BLS through sham lease agreements and sham service agreements between 2006 and 2010, Santangelo began receiving bribes from BLS through a third party – often tens of thousands of dollars a month – totaling more than $1 million between 2010 and his arrest in April 2013.
Santangelo acknowledged the authenticity of text messages between himself and BLS president and part owner David Nicoll, 41, of Mountain Lakes, New Jersey in which Santangelo referred to ordering unnecessary tests to increase referrals to BLS in exchange for bribes. In one text message conversation, Santangelo said he and another doctor had “put our heads together and added a significant amount of testing….The testing is 90 percent legit.” Santangelo detailed his plan to send $1 million per month in blood testing referrals to BLS by increasing the number of blood tests being ordered, including medically unnecessary tests.
In another text message conversation, Nicoll wrote to Santangelo about the status of their referral agreement, stating that BLS “really can’t afford the 40-50,000 [dollars] a month if the girls aren’t going to be drawing any blood,” to which Santangelo responded by stating, “U no u can count on me!” and “I never let u down!”
He also pleaded guilty to money laundering, admitting that he used another individual in an attempt to hide the bribes from BLS, and to failing to file tax returns from 2009-2011 and pay taxes owed during that time period.
On April 9, 2013, federal agents arrested David Nicoll; Scott Nicoll, 34, of Wayne, New Jersey, a senior BLS employee and David Nicoll’s brother; and Craig Nordman, 36, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – an entity used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Santangelo. David and Scott Nicoll and Nordman are awaiting sentencing.
“Physicians who accept kickbacks in exchange for patient referrals and ordering medically unnecessary blood tests undermine the public’s faith in the medical profession and the financial stability of Medicare,” said Special Agent in Charge Scott J. Lampert for the Department of Health and Human Services Office of Inspector General (OIG). “OIG will continue to protect both taxpayers and patients by holding physicians accountable for such wrongdoing.”
In addition to the prison term, Judge Chesler sentenced Santangelo to three years of supervised release and fined him $6,250. Santangelo must also forfeit more than $1.8 million as part of his plea agreement. The investigation has so far recovered more than $11.5 million through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Frankel; Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish and Chief Jacob T. Elberg of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Doctor Sentenced to 63 Months in Prison for Accepting $1.8 Million in Bribes for Test ReferralsRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, doctor was sentenced today to 63 months in prison for accepting $1.8 million in bribes to refer millions of dollars in business to Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, as part of a long-running scheme operated by the lab, its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
Frank Santangelo, 45, of Boonton, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with violating the Travel Act, money laundering and failing to file tax returns. Judge Chesler imposed the sentence today in Newark federal court.
“Santangelo admitted he violated the trust of his patients, who should be able to count on their doctors’ prescribing only tests that are necessary and recommending providers based solely on their qualifications,” U.S. Attorney Fishman said. “This type of fraud compromises patient care and drives up the cost of health care.”
“Today’s sentencing of Frank Santangelo is the result of a long-term, multi-agency investigation into a complex health care fraud scheme which involved millions of dollars,” Richard M. Frankel, FBI Special Agent in Charge, Newark Division, said. “Santangelo’s arrest and sentencing send the message the FBI and its law enforcement partners will continue to zealously investigate these fraud and abuse schemes, which divert critical resources from of our already overburdened health care system and contribute exponentially to the rising cost of health care.”
Including Santangelo, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.
According to documents filed in this and other cases and statements made in court:
Santangelo, who has offices in Montville, New Jersey, and Wayne, New Jersey, received more than $1.8 million in bribe payments from BLS for referrals for which the lab was paid more than $6 million by Medicare and various insurance companies. After receiving more than $800,000 from BLS through sham lease agreements and sham service agreements between 2006 and 2010, Santangelo began receiving bribes from BLS through a third party – often tens of thousands of dollars a month – totaling more than $1 million between 2010 and his arrest in April 2013.
Santangelo acknowledged the authenticity of text messages between himself and BLS president and part owner David Nicoll in which Santangelo referred to ordering unnecessary tests to increase referrals to BLS in exchange for bribes. In one text message conversation, Santangelo said he and another doctor had “put our heads together and added a significant amount of testing…. The testing is 90 percent legit.” Santangelo detailed his plan to send $1 million per month in blood testing referrals to BLS by increasing the number of blood tests being ordered, including medically unnecessary tests.
In another text message conversation, David Nicoll wrote to Santangelo about the status of their referral agreement, stating that BLS “really can’t afford the 40-50,000 [dollars] a month if the girls aren’t going to be drawing any blood,” to which Santangelo responded by stating, “U no u can count on me!” and “I never let u down!”
He also pleaded guilty to money laundering, admitting that he used another individual in an attempt to hide the bribes from BLS, and to failing to file tax returns from 2009-2011 and pay taxes owed during that time period.
On April 9, 2013, federal agents arrested David Nicoll, 41, of Mountain Lakes, New Jersey; Scott Nicoll, 34, of Wayne, New Jersey, a senior BLS employee and David Nicoll’s brother; and Craig Nordman, 36, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – an entity used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Santangelo. David and Scott Nicoll and Nordman are awaiting sentencing.
“Physicians who accept kickbacks in exchange for patient referrals and ordering medically unnecessary blood tests undermine the public’s faith in the medical profession and the financial stability of Medicare,” said Special Agent in Charge Scott J. Lampert, U.S. Department of Health and Human Services Office of Inspector General. “OIG will continue to protect both taxpayers and patients by holding physicians accountable for such wrongdoing.”
In addition to the prison term, Judge Chesler sentenced Santangelo to three years of supervised release and fined him $6,250. Santangelo must also forfeit more than $1.8 million as part of his plea agreement. The investigation has so far recovered more than $11.5 million through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Thomas Ambrosio Esq., Lyndhurst, New Jersey
District Man Sentenced to Eight Years in Prison for Bias-Related Attack of Man in Northeast WashingtonRead the Press Release
WASHINGTON – David Morris, 33, of Washington, D.C., was sentenced today to an eight-year prison term for the felony offense of assault with intent to kill, with a bias enhancement, for repeatedly attacking a male co-worker who he believed was making a sexual overture toward him, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Morris pled guilty to the charge on May 14, 2015, in the Superior Court of the District of Columbia. He was sentenced by the Honorable Patricia A. Broderick. Upon completion of his prison term, Morris will be placed on three years of supervised release.
“This criminal’s prejudices drove him to punch, stomp, and use a metal pole to beat his co-worker,” said Acting U.S. Attorney Cohen. “He will spend the next eight years in prison as punishment for this brutal assault. The U.S. Attorney’s Office will continue to prioritize the prosecution of criminals who express their hate through violence.”
According to the government’s evidence, Morris and the victim, 52, were friends and work colleagues at the time of the attack. On the evening of March 14, 2015, the two men were at Morris’s apartment in the 200 block of 61st Street NE, drinking alcohol. Morris interpreted an action from the victim as a homosexual overture. He became enraged and physically threw the victim out of his apartment and down the hallway stairs, toward the first floor of the building. He then dragged the victim from the foyer onto the pathway in front of the building, leaving him there while he went back inside. Two minutes later, however, Morris returned outside, jumped off of a ledge, and, while wearing boots, stomped on the victim’s head. While the victim remained on the ground, Morris repeatedly punched him in the head and upper body.
Morris verbally expressed his rage at the victim, repeatedly exclaiming that the victim “tried to rape me” and similar phrases. He then began once again punching him in the head and upper body. He returned inside, only to come back out about six minutes later – this time with a metal pole. He poked the victim with the pole and then struck him with it multiple times in the head and upper body. Yet again, Morris returned inside, only to come back out a short time later. Still wearing boots, Morris kicked the victim in the head. Then he approached the victim’s car and scratched and marked it before finally leaving the scene.
The victim, who was left on the pathway, bleeding profusely from the head, was hospitalized for almost two weeks. He received about 10 stitches to close a gash on the top of his head. He also lost feeling in the right side of his face and will require facial surgery to attempt to repair that damage. His eyesight also has deteriorated significantly. He still uses a cane.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the officers, detectives, and others who worked on the case from the Metropolitan Police Department. He also expressed appreciation for the work of the Forensic Services Division of the U.S. Secret Service. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Richard Cheatham, Victim/Witness Advocate Jennifer Clark, and Assistant U.S. Attorney Jeffrey S. Nestler, who investigated and prosecuted the case.
Danville Man Pleads Guilty to Possession of Child PornographyRead the Press Release
OAKLAND – Mitchell Phillip Wolf pleaded guilty in federal court in Oakland today to possession of child pornography, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson
As part of his plea agreement, Wolf, 59, of Danville, Calif., admitted to knowingly possessing approximately 50,000 digital files depicting minors engaged in sexually explicit conduct. Wolf admitted to intentionally saving the image and video files to his personal desktop computer and to assorted CD-ROMs and DVDs that he stored in his home office, bedroom, and briefcase. On many of the CD-ROMs and DVDs, Wolf hand-labeled their content with terms consistent with child pornography, such as “PTHC” for “pre-teen hardcore.” Wolf also admitted to downloading the digital files from the internet using an online peer-to-peer file sharing program. Wolf was charged by information on April 3, 2015, with a single count of possession of child pornography in violation of 18 U.S.C. § 2252 (a)(4)(B). Pursuant to the plea agreement, Wolf pleaded guilty to the count as charged.
Wolf is currently released on a $250,000 bond. His sentencing hearing is scheduled for October 21, 2015, before the Honorable Phyllis J. Hamilton, U.S. District Judge, in Oakland. The maximum statutory penalty for a violation of 18 U.S.C. § 2252 (a)(4)(B) is 10 years in prison, a fine of $250,000, a lifetime term of supervised release, and payment of restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Wade M. Rhyne is prosecuting the case with the assistance of Janice Pagsanjan and Noble Hughes. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Silicon Valley Internet Crimes Against Children’s Task Force, and the Contra Costa County District Attorney’s Office.
Community leaders announce progress in fight to combat drug abuseRead the Press Release
HEELING, WEST VIRGINIA – A diverse group of community leaders from across the Ohio Valley joined United States Attorney William J. Ihlenfeld, II, today to highlight the progress of the United States Attorney’s Addiction Action Plan.
According to Ihlenfeld, the Action Plan is a comprehensive, multidisciplinary approach to combat drug abuse and overdoses. The Action Plan was formed in the fall of 2014 and community leaders in the Ohio Valley announced their recommendations last December. The Action Plan incorporates eight subcommittees, led by experts from various fields including education and news media, treatment and recovery, and law enforcement and community corrections.
“It has become increasingly clear that a traditional approach to combatting drug abuse, focused on arrests and prosecutions, is not enough,” noted U.S. Attorney Ihlenfeld. “Drug dealers have found increasingly entrepreneurial ways to capitalize on the unforgiving grip of addiction. The CDC announced this week that heroin use in the United States has increased by 62% over the last decade. We must respond with new and innovative ideas to reverse this trend. I am thrilled that a diverse group of thought leaders from the Ohio Valley has come together to find creative ways to combat drug abuse and save lives. They have made significant progress in recent months and I look forward to seeing what comes next.”
The Action Plan subcommittees announced several tangible results achieved to date, including:
News Media and Education. Student leaders from across the Ohio Valley have envisioned and designed an innovative series of viral marketing awareness videos with support from the Education and News Media Subcommittees. These videos will be distributed on social media and displayed at various school and community events. The Wheeling Nailers hockey team will partner with the Action Plan to play these videos at games during the upcoming season. The first video in the #ThisIsHeroin series premiered in early July 2015 and has already gained significant traction on YouTube and social media.
Medical. With support from the Medical Subcommittee, the U.S. Attorney’s Office recently hosted the 2015 West Virginia Prescriber Education Conference to better education physicians and pharmacists on best practices for prescribing and dispensing narcotic medications. Michael Botticelli, the Director of the White House Office of National Drug Control Policy, delivered the keynote address at the conference. The event was well-attended by substance abuse professionals, physicians, and pharmacists.
Treatment. The Treatment Subcommittee recently launched the drugfreeov.com website which provides a simple roadmap to treatment by providing a comprehensive directory of substance abuse treatment resources in the Ohio Valley. The website has had nearly 1,000 visitors since it launched in March 2015. The Treatment Subcommittee is also partnering with the Wheeling Police Department to develop a crisis intervention training program for the officers. Further, the Treatment Subcommittee has developed a Justice Reinvestment Program that services Marshall and Ohio Counties. The program has already provided substance abuse treatment for 20 individuals diverted from drug and mental health courts, parole, and/or probation.
Community Corrections. In the continued effort to find creative alternatives to traditional criminal prosecutions, the Community Corrections Subcommittee was instrumental in developing and launching the first Federal Drug Court in West Virginia.
Enforcement. Law enforcement officials are also improving how they investigate and prosecute drug trafficking. The U.S. Attorney’s Office provided training to local law enforcement, encouraging the development of standardized best practice for investigating a drug overdose. This has led to an increased emphasis on the investigation and prosecution of interstate drug distribution operations in which drugs are transported across state lines into West Virginia for purely economic gain. The U.S. Attorney’s Office is also developing a national curriculum to improve the investigation and prosecution of fatal drug overdoses.
Anyone interested in additional information on the effort to combat drug abuse is encouraged to contact the United States Attorney’s Office for the Northern District of West Virginia at (304) 234-0100. Continuing updates will also be available through the U.S. Attorney’s official Twitter page @NDWVnews.
Columbus Man Sentenced to more than 10 years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Christopher Shea, 34, of Columbus, Nebraska, was sentenced on July 7, 2015, to 121 months in prison by Senior United States District Judge Joseph F. Bataillon. Shea had previously pled guilty to Conspiracy to Distribute more than 50 grams of Methamphetamine. Shea was arrested and indicted on the charge after he was found in possession of approximately a quarter pound of methamphetamine on October 9, 2014. During a post arrest interview, Shea admitted that he had been selling quarter pounds of methamphetamine on a weekly basis in the Columbus area during the summer of 2014. After serving his sentence Shea will be required to serve a term of supervised release of 5years.
This case was the result of an investigation by the Nebraska State Patrol.
Cleveland woman faces charges related to Section 8 rentalRead the Press Release
A Cleveland woman faces criminal charges related to collecting Section 8 payments for renting a property to a relative, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Jasmine Ganaway, 36, was charged via criminal information with one count of theft of public money and one count of concealment of assets in bankruptcy.
Ganaway formerd LRG Development in 2006. She purchased residence on East 146th Street in Cleveland then transferred ownership to LRG. That residence in 2008 was certified for the Housing Choice Voucher Program, or Section 8, In November 2008, two of Ganaway’s relatives executed a lease agreement for part of the property on East 146th Street, despite a prohibition against leasing to relatives, according to the information.
Between 2009 and 2015, the Cuyahoga Metropolitan Housing Authority made deposits under the Section 8 program into Ganaway’s checking account totaling approximately $35,611, according to the information.
In October 2013, Gananway also fraudulently concealed her ownership interest in LRG and rental income as part of her bankruptcy proceedings, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton following an investigation by the U.S. Department of Housing and Urban Development-Office of Inspector General and the CMHA police.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chief Mate Sentenced to Three Months in Prison for Environmental CrimesRead the Press Release
Valerii Georgiev, 42, a Russian citizen, and the former chief mate of the ocean cargo vessel M/V Murcia Carrier, was sentenced to a term of three months prison for failing to maintain an accurate oil record book in violation of the Act to Prevent Pollution from Ships (APPS), by the Honorable Joseph Rodriguez, the Department of Justice Environment and Natural Resources Division and the U.S Attorney’s Office for the District of New Jersey announced today.
APPS requires vessels like the M/V Murcia Carrier to maintain a record known as an oil record book in which all transfers and disposals of oil-contaminated waste, including the discharge overboard of such waste, must be fully and accurately recorded.
On April 27, 2014, at the direction of Georgiev, crew members on board the M/V Murcia Carrier dumped overboard several barrels containing some hydraulic oil. While Georgiev disputes the number of barrels dumped into the sea, the government believes that approximately 20 barrels of hydraulic oil were dumped overboard. The dumping occurred in international waters off the coast of Florida while the vessel was in transit from Costa Rica to New Jersey. The dumping was not recorded in the ship’s oil record book. During the course of the Coast Guard boarding, Georgiev denied that dumping occurred and instructed crew members on board the vessel to deny that dumping had occurred.
On June 17, 2015, Norbulk Shipping UK Ltd, a company in Glasgow, United Kingdom and operator of the M/V Murcia Carrier pleaded guilty failing to maintain an accurate oil record logbook and providing false statements with respect to the vessel’s garbage record book. The company was sentenced to pay a fine of $750,000 and placed on probation for three years.
The case was investigated by U.S. Coast Guard Sector Delaware Bay and the U.S. Coast Guard Investigative Service. The case was prosecuted by Joel La Bissonniere of the Environmental Crimes Section of the Department of Justice and Assistant U.S. Attorneys Kathleen O’Leary and Matthew Smith of the U.S. Attorney’s Office of the District of New Jersey.
Chicago Man Federally Indicted for Armed Robberies in HarrisburgRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Silas Lee Sneed, age 25, of Chicago, Illinois, was indicted by a federal grand jury in Harrisburg. The indictment charges Sneed with three counts of robbery and one count of use of a firearm during a crime of violence.
According to United States Attorney Peter Smith, the charges against Sneed are a result of allegations that Sneed robbed a retail establishment in Harrisburg and attempted to rob two others during the evening of May 7, 2015. At each store, Sneed allegedly threatened the employees with a firearm. Sneed was taken into custody by Harrisburg Police early the following morning.
The investigation was conducted by the Federal Bureau of Investigation and the Harrisburg Bureau of Police. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is lifetime imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Charleston man gets 3+ years in federal prison for timeshare fraudRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that David Brandon Ball, 35, of Charleston, was sentenced to 37 months in federal prison for defrauding timeshare owners throughout the United States and Canada.
Ball and an associate, David Andrew Glynn, formed Mountain State Resales, LLC (MSR), a bogus company used to defraud timeshare owners of money. Ball and his associates told timeshare owners that MSR had a buyer for their timeshares and persuaded them to advance money to MSR in South Charleston to cover fees and expenses necessary for the sales.
In truth, however, MSR had no buyers for the timeshares. Ball knew that the timeshare owners would not receive anything in return for money sent to MSR.
In an unusual twist on their principal scam, Ball and his associates, including Glynn, also posed as “agents” eager to help timeshare owners who had lost money in other timeshare fraud schemes. In this spin-off scheme, they said they were affiliated with a non-existent organization named “Internal Revenue Recovery Associates” and were investigating timeshare fraud. Ball admitted that he and his coconspirators told the timeshare owners to send money to MSR to assist “agents” in recovering the lost funds.
“This guy was stealing money out of both pockets of timeshare owners,” said U.S. Attorney Goodwin. “He got rich by setting up fake timeshare sales, while at the same time posing as someone who could help fraud victims get their money back. It would be hard to believe if it weren’t true.”
“Protecting innocent citizens against fraud schemes like this is an important part of what my office does,” Goodwin continued. “I’m happy to say this crook is heading to federal prison.”
Neither MSR nor Internal Recovery Associates were legitimate businesses. Both were used to defraud timeshare owners. Ball admitted that MSR received at least $80,346 from the conspiracy.
Ball further admitted that in 2013, he operated a Florida-based company called International Transfers and Documents (International Transfers), which, like MSR, was created and used to defraud timeshare owners. This Florida scheme tricked victims out of more than $145,000.
Ball was ordered to pay restitution to the victims of both MSR and International Transfers in the amount of $210,920.25. Glynn previously pleaded guilty and received 30 months in federal prison for his role in the offense.
Ball’s sentence was handed down by United States District Judge John T. Copenhaver, Jr., in Charleston.
Today’s sentencing stems from an investigation being conducted by the West Virginia State Police, the Federal Bureau of Investigation, and the United States Postal Inspection Service. Assistant United States Attorney Meredith George Thomas is handling the prosecution.
Cargo Ship Officer Sentenced to Three Months in Prison for Failing to Report Oil He Ordered Dumped into OceanRead the Press Release
CAMDEN, N.J. –The former chief mate of the ocean cargo vessel M/V Murcia Carrier was sentenced today to three months in prison for failing to report the hydraulic oil he ordered dumped into the ocean, New Jersey U.S. Attorney Paul J. Fishman and Assistant Attorney General John C. Cruden for the U.S. Department of Justice Environment and Natural Resources Division announced.
Valerii Georgiev, 42, a Russian citizen, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of failing to maintain an accurate oil record book in violation of the Act to Prevent Pollution from Ships (APPS). Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
APPS requires vessels like the M/V Murcia Carrier to maintain a record known as an oil record book in which all transfers and disposals of oil-contaminated waste, including the discharge overboard of such waste, must be fully and accurately recorded.
On April 27, 2014, at the direction of Georgiev, M/V Murcia Carrier crew members dumped several barrels containing hydraulic oil overboard. While Georgiev disputes the number of barrels dumped into the sea, the government believes that approximately 20 barrels of hydraulic oil were dumped overboard. The dumping occurred in international waters off the coast of Florida while the vessel was in transit from Costa Rica to New Jersey. The dumping was not recorded in the ship’s oil record book. When the Coast Guard boarded the vessel, Georgiev denied that the dumping occurred and instructed crew members to do the same.
On June 17, 2015, Norbulk Shipping UK Ltd, a company in Glasgow, United Kingdom, and operator of the M/V Murcia Carrier pleaded guilty to failing to maintain an accurate oil record book and providing false statements with respect to the vessel’s garbage record book. The company was sentenced to pay a fine of $750,000 and placed on probation for three years.
The case was investigated by U.S. Coast Guard Sector Delaware Bay and the U.S. Coast Guard Investigative Service. The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary and Matthew Smith of the U.S. Attorney’s Office, District of New Jersey, and Joel La Bissonniere of the Environmental Crimes Section of the Department of Justice.
Defense counsel: Michael Keith Twersky Esq., Atlantic City, New Jersey.
Canadian Corporation Pleads Guilty to Importation of Contaminated Cattle FeedRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Yves Bolduc, President of the Quebec cattle feed brokerage and manufacturing company, Meunerie Sawyerville, Inc., appeared today in United States District Court in Rutland to enter a plea of guilty on behalf of the Canadian corporation. The defendant corporation pled guilty to one felony count of making a false statement to Customs and Border Protection officials, and one felony count of fraudulently causing the cattle feed drug monensin to be introduced into interstate commerce at a level of concentration significantly higher than that allowed by the Food and Drug Administration.
According to court documents, on or about Sept. 12, 2012, Meunerie Sawyerville sent a driver into the United States with a truckload of cattle feed medicated with the regulated drug monensin at a concentration above that allowed by the FDA and 200% above the amount on the feed label. The feed was sampled at the border, and the driver was ordered to warehouse the feed pending further testing from the FDA. Contrary to orders from U.S. officials, Bolduc instructed the driver to deliver the feed to the Vermont farmer as planned, without informing the farmer that the feed had been sampled and ordered held by the FDA. The driver did deliver the medicated feed to the customer, and the Vermont cows consumed the contaminated feed.
Bolduc thereafter engineered a plan that a sham shipment of similar-looking cattle feed cross the border under false Customs documentation to be stored on an unrelated piece of land in Vermont until requested for redelivery by Customs and Border Protection. Upon Customs’ request, Bolduc ordered that the sham shipment be presented for redelivery, accompanied by the fictitious documentation, offering up the sham shipment feed to the U.S. government as the held tainted feed that was in fact already consumed by Vermont cows.
According to court documents, the parties have agreed that the appropriate sentence is a fine of $80,000, and a term of probation of one year. The actual sentence will be determined with reference to federal sentencing guidelines.
Meunerie Sawyerville is represented by Attorney Bud Allen. The prosecutor is Assistant U.S. Attorney Abigail Averbach.
Camp Hill Man Sentenced to Federal Prison for Participation in Illegal Sports Gambling OperationRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steven Sheely, Sr., age 60 of Camp Hill, Pennsylvania was sentenced today by Senior U.S. District Court Judge William C. Caldwell to 14 months in federal prison.
Sheely Sr. pled guilty on February 17, 2015, to conspiracy to run an illegal sports gambling operation. His son, Steven Sheely, Jr., pled guilty on December 4, 2014 and was sentenced in March 2015 to five months in federal prison.
According to United States Attorney Peter Smith, Sheely, Sr. and the others took in millions of dollars in illegal bets on sporting events. The bookmaking activity took place mainly in central Pennsylvania where the participants lived. The conspiracy was uncovered primarily through the use of a court-authorized wiretap and the arrest of the participants in May 2014.
The prosecution stemmed from an investigation conducted by the Federal Bureau of Investigation, the Pennsylvania Department of Agriculture’s Racing Commission, and the Pennsylvania State Police. Assistant United States Attorney William A. Behe was assigned to handle the investigation and prosecution of the case.
# # #
Bergen County, New Jersey, Man Convicted of Failing to Register as A Sex OffenderRead the Press Release
NEWARK, N.J. – A Teaneck, New Jersey, man was convicted today of failing to register as a sex offender when he moved to New Jersey in the fall of 2013, U.S. Attorney Paul J. Fishman announced.
Richard Joseph, a/k/a “Richard Beltre,” a/k/a “Joseph Richards,” a/k/a “Aaron Joseph,” 42, of Teaneck, New Jersey, who is classified as a Tier III sex offender in New York, was convicted after a bench trial before U.S. District Judge Susan D. Wigenton in Newark federal court of one count of failing to register or update a registration as required by the Sex Offender Registration and Notification Act (“SORNA”).
SORNA requires that all sex offenders who, among other things, travel in interstate or foreign commerce, must register as a sex offender and keep that registration current in each jurisdiction where the sex offender resides.
According to documents filed in this case and the factual stipulations presented at trial:
Joseph was required to register as a sex offender due to his 2002 conviction in New York for rape in the third degree. He first registered as a sex offender in New York using the alias “Richard J. Beltre” in 2006 and knew that he was required to register as a sex offender every time he changed his address. However, when Joseph was released from the custody of the N.Y. State Department Correctional Services in 2013, he failed to report as directed by the N.Y. State Division of Parole and a warrant was issued for his arrest. He was eventually arrested on Oct. 11, 2013, having lived in Bergen County since Sept. 7, 2013. During that time, Joseph failed to register as a sex offender in New Jersey.
Joseph faces a maximum potential sentence of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 29, 2015.
U.S. Attorney Fishman credited the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos, Jr., and the U.S. Marshals Service New York/New Jersey Regional Fugitive Task Force with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Sara F. Merin and Jane H. Yoon of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Timothy Donohue Esq., West Orange, New Jersey
Beckley-area man pleads guilty to federal drug chargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Lorenzo Anderson, 32, of Beckley, pleaded guilty to a federal drug charge. Anderson admitted that on February 16, 2015, when a search warrant was executed at his Beckley home, he was in possession of cocaine base with the intent to distribute it.
Anderson faces up to 20 years in prison and a $1,000,000 fine. United States District Judge Irene C. Berger scheduled Anderson’s sentencing for October 21, 2015.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.
Atlanta Man Pleads Guilty to Methamphetine Conspiracy ChargeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAMES WOOLF, age 41, a resident of Atlanta, Georgia, pled guilty before United States District Judge Martin L. C. Feldman to one count of conspiracy to distribute and possess with intent to distribute fifty grams or more of methamphetamine.
According to the indictment, beginning on a date unknown and continuing until on or about September 8, 2013, WOOLF knowingly combined, conspired, confederated and agreed with persons known and unknown to the Grand Jury, to distribute and possess with the intent to distribute a fifty (50) grams or more of methamphetamine.
WOOLF faces a minimum term of imprisonment of twenty years, a maximum term of life imprisonment, a fine of $10,000,000.00, at least five years of supervised release after imprisonment, and a $100.00 special assessment. District Judge Feldman set sentencing for October 21, 2015.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Andre’ Jones is the prosecuting attorney.
Appleton Man Indicted on Methamphetamine and Firearm ChargesRead the Press Release
Mr. James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on July 7, 2015, a federal grand jury returned a two-count indictment against Khee Vang (age: 36) of Appleton, Wisconsin, charging him with a count of possession with intent to distribute methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B) and, further, charging him with possession of a firearm in furtherance of a drug crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). If convicted of the drug offense, the defendant faces a sentence of between five and forty years imprisonment, a five million dollar fine, and between four years and a lifetime of supervised release. Conviction on the firearm offense carries a mandatory consecutive term of five years imprisonment and up to a life sentence.
According to court filings, the defendant was under surveillance when he travelled from Appleton to La Crosse to purchase methamphetamine. The defendant was stopped by law enforcement in the City of Menasha and was found to be in possession of 117 grams of methamphetamine and a semi-automatic weapon.
The case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation, the Lake Winnebago Area Metropolitan Enforcement Group, and the United States Drug Enforcement Administration, with the assistance of the Wisconsin State Patrol. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
# # # #
7 July 2015
Wichita Attorney Convicted on Federal Tax Evasion ChargeRead the Press Release
WICHITA, KAN. – A Wichita attorney was convicted today of evading federal taxes, U.S. Attorney Barry Grissom said.
U.S. District Judge Eric Melgren found Eldon L. Boisseau, 67, Wichita, Kan., guilty on one count of tax evasion.
In a written decision, the court found that during 1998 through 2000, 2002 through 2005 and 2007 through 2008 Boisseau attempted to evade paying federal income taxes, as well as a trust fund recovery penalty from 1999. He interfered with the government’s efforts to collect the taxes he owned by putting his law firm in the name of a nominee, terminating his own pay agreement with the law firm and then having the firm pay for his personal expenses.
Sentencing is set for Sept. 28. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended the Internal Revenue Service, Assistant U.S. Attorney Alan Metzger and Sean Green, Trial Attorney with Justice Department’s Tax Division, for their work on the case.
West Monroe man, New Jersey man sentenced for roles in anabolic steroid distribution ringRead the Press Release
MONROE La. – United States Attorney Stephanie A. Finley announced that a West Monroe man and a New Jersey man were sentenced Monday for their roles in importing and selling anabolic steroids.
David Ray Dean, 47, of West Monroe, La., and Justin R. Kull, 28, of Turnersville, N.J., were sentenced by U.S. District Judge Robert G. James to 15 months in prison and 12 months in prison respectively for one count of conspiracy to distribute Schedule III controlled substances. Dean was ordered to pay a $4,000 fine, and Kull was ordered to pay a $5,000 fine and surrender his nursing license. They were also sentenced to four years of supervised release. According to evidence presented at the guilty pleas, Dean and Kull in addition to Gary Lynn Ward, 47, of Monroe, conspired to possess with intent to distribute anabolic steroids starting sometime in 2013 until August 27, 2013. Kull was a nurse from New Jersey who supplied quantities of steroids to Ward and Dean. Ward and Dean would also import the drugs from overseas and other domestic sources. They would then process the drugs in a makeshift lab in the Monroe area and distribute them.
Ward was sentenced to 46 months in prison and four years of supervised release on June 29, 2015 for the conspiracy count. This is Dean and Ward’s second prosecution for steroid distribution. They previously pleaded guilty on June 21, 2007 to conspiracy to distribute steroids and were sentenced on October 15, 2007 to one year in prison and three years of supervised release.
United States Customs and Border Patrol-Homeland Security Investigations, the U.S. Postal Inspection Service and Louisiana State Police participated in the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
United States Sues Estate and Trusts of Deceased Man for False Claim to U.S. Treasury to Obtain $17.3 Million Investment in Arkansas BankRead the Press Release
The United States has sued the estate and trusts of the late Layton P. Stuart, former owner and president of One Financial Corporation, and its wholly-owned subsidiary, One Bank & Trust N.A., both based in Little Rock, Arkansas, alleging that Stuart made misrepresentations to induce the U.S. Department of the Treasury to invest $17.3 million of Troubled Asset Relief Program (TARP) funds in One Financial as part of Treasury’s Capital Purchase Program (CPP), the Justice Department announced today.
“TARP was enacted in 2008 to restore liquidity and stability to the financial system of the United States by injecting needed capital into financial institutions,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Obtaining TARP funds based on false representations to the government frustrates those goals and harms the American taxpayer.”
According to the United States’ complaint, Stuart, on behalf of One Financial, applied in late 2008 for a TARP investment totaling $17.3 million. The complaint alleges that Stuart knowingly made false statements about the financial condition of One Bank and its intentions for the use of the TARP funds. In particular, the statements and TARP application allegedly concealed serial frauds that Stuart and other One Financial directors and bank executives had been committing and intended to continue committing on One Bank. As set forth in the complaint, the schemes involved Stuart’s diversion of funds from One Bank for personal use including, within 30 days of receiving the $17.3 million in TARP funds, the diversion of more than $2 million into personal accounts for his own use. Stuart was terminated from One Bank in September 2012.
The investigation was conducted by the U.S. Treasury, Internal Revenue Service-Criminal Investigation Division, the Office of the Special Inspector General for TARP, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the Eastern District of Arkansas. The case is captioned United States v. Estate of Layton P. Stuart, et al., No. 1:15-cv-01044-RDM (D.D.C.). The claims asserted by the government are allegations only and there has been no determination of liability.
United States Sues Estate and Trusts of Deceased Man for False Claim to U.S. Treasury to Obtain $17.3 Million Investment in Arkansas BankRead the Press Release
WASHINGTON – The United States has sued the estate and trusts of the late Layton P. Stuart, former owner and president of One Financial Corporation, and its wholly-owned subsidiary, One Bank & Trust N.A., both based in Little Rock, Arkansas, alleging that Stuart made misrepresentations to induce the U.S. Department of the Treasury to invest $17.3 million of Troubled Asset Relief Program (TARP) funds in One Financial as part of Treasury’s Capital Purchase Program (CPP), the Justice Department announced Tuesday.
“TARP was enacted in 2008 to restore liquidity and stability to the financial system of the United States by injecting needed capital into financial institutions,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Obtaining TARP funds based on false representations to the government frustrates those goals and harms the American taxpayer.”
According to the United States’ complaint, Stuart, on behalf of One Financial, applied in late 2008 for a TARP investment totaling $17.3 million. The complaint alleges that Stuart knowingly made false statements about the financial condition of One Bank and its intentions for the use of the TARP funds. In particular, the statements and TARP application allegedly concealed serial frauds that Stuart and other One Financial directors and bank executives had been committing and intended to continue committing on One Bank. As set forth in the complaint, the schemes involved Stuart’s diversion of funds from One Bank for personal use including, within 30 days of receiving the $17.3 million in TARP funds, the diversion of more than $2 million into personal accounts for his own use. Stuart was terminated from One Bank in September 2012.
The investigation was conducted by the U.S. Treasury, Internal Revenue Service-Criminal Investigation Division, the Office of the Special Inspector General for TARP, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the Eastern District of Arkansas. The case is captioned United States v. Estate of Layton P. Stuart, et al., No. 1:15-cv-01044-RDM (D.D.C.). The claims asserted by the government are allegations only and there has been no determination of liability.
U.S. Attorney announces more results in Bluefield Pill InitiativeRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin today announced a two-year prison sentence and two guilty pleas in federal court in Bluefield.
Leonard Carey Rucker, 44, of Princeton, West Virginia, was sentenced to two years in federal prison for distributing heroin. He pleaded guilty in February, admitting that on November 4, 2014, he distributed heroin to a confidential informant in Princeton.
Craig Arnold Young, 42, of Lashmeet, West Virginia, pleaded guilty to using a communication facility to facilitate a felony, admitting that on December 16, 2014, he used a telephone in or near Lashmeet to help carry out a drug transaction with an informant. Shortly after the telephone conversation, Young distributed hydromorphone to the informant. Young faces up to four years in prison and a $250,000 fine when he is sentenced on November 3, 2015.
Aree Lumpkins, 19, of Bluefield, also pleaded guilty to use of a communications facility to facilitate a felony. He admitted that on October 30, 2014, he used a telephone in Bluefield to help set up a drug transaction with an informant. After the telephone conversation, he distributed cocaine base and hydromorphone to the informant. Lumpkins faces up to four years in prison and a $250,000 fine. His sentencing is scheduled for November 3, 2015.
The hearings in all the cases were conducted by Senior United States District Judge David A. Faber.
These cases were investigated by the Southern Regional Drug and Violent Crime Task Force in Bluefield under the Bluefield Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiates--including illegal painkillers and heroin--in communities across the Southern District. Assistant United States Attorney John File prosecuted these cases.
Two Lords Amongst Warriors Motorcycle Club Members Plead Guilty in Federal CourtRead the Press Release
PITTSBURGH – Two Allegheny County residents pleaded guilty to a variety of offenses in federal court before Chief U.S. District Judge Joy Flowers Conti in Pittsburgh yesterday, U.S. Attorney David J. Hickton announced today.
Defendants Scott Kulikowski, 40, of Pittsburgh, PA, and Christopher Levy, 31, of Pittsburgh, PA, pled guilty to offenses resulting from a multi-agency investigation of them, Raymond Kober, and their associates in a motorcycle club called The Lords Amongst Warriors, or The LAW.
Kulikowski and Levy pleaded guilty to conspiracy to commit a Hobbs Act Robbery and possession of a firearm in furtherance of a crime of violence. According to the information presented to the court, in an around September 2014, Raymond Kober, Kulikowski and Levy conspired to commit an armed robbery of a business located in the Strip District section of Pittsburgh. Wiretapped telephone calls revealed the conspiracy and local police and federal agents were able to respond moments before the robbery occurred. According to the information presented to the court, Levy was stopped by police as he was approximately two blocks away from the robbery location and was found to have a loaded firearm in his possession for use in the robbery.
Separately, Scott Kulikowski also pled guilty to conspiracy to distribute and possess with intent to distribute cocaine from in and around January, 2014, and continuing thereafter to on or about Jan. 12, 2015, in the Western District of Pennsylvania and elsewhere. The information presented to the court indicated that during the course of the conspiracy, Kulikowski conspired to obtain and sell cocaine with Raymond Kober, Jason Godek and other individuals.
Also separately, Christopher Levy pled guilty to possession of firearms by a person who was prohibited from possessing firearms pursuant to a court order. According to the information presented to the court, Levy was prevented from possessing firearms due to an active protection from abuse order however, agents found him in possession of a firearm during the above-noted robbery as well as during a search of Levy’s residence on Jan. 12, 2015.
Judge Conti scheduled sentencing for Kulikowski and Levy for Oct. 16, 2015. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Internal Revenue Service–Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Allegheny County District Attorney’s Narcotics Enforcement Team and the Pittsburgh Bureau of Police conducted the investigation leading to the indictments in this case. This investigation was made possible through the Organized Crime Drug Enforcement Task Force program, a federal program designed to direct federal funds, and federal and local resources, at large scale, multi-jurisdictional drug investigations.
Two Clarksburg residents sentenced for heroin trafficking near local playgroundsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Whitney M. Golden, 25, and Al-Teric Garrett, 33, both of Clarksburg, West Virginia, were sentenced in federal court today for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.Garret was discovered in possession of heroin in December 2014 near the Clarksburg City Park – Broadway Avenue Playground in Harrison County, West Virginia. He pled guilty in March 2015 to one count of “Possession with Intent to Distribute Heroin Within 1,000 Feet of a Protected Location.” He was sentenced today to 51 months in prison with credit for time served since December 2014.
Golden was discovered in possession of heroin in December 2014 near the Clarksburg City Park – Monticello Avenue Playground in Harrison County, West Virginia. She pled guilty in March 2015 to one count of “Aiding and Abetting the Possession with Intent to Distribute Heroin Within 1,000 Feet of a Protected Location.” She was sentenced today to 16 months in prison.
Assistant U.S. Attorney Shawn Morgan prosecuted the cases on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated both defendants.
U.S. District Judge Irene M. Keeley presided.
Tucumcari Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Alexander Page, 27, of Tucumcari, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. Under the terms of his plea agreement, Page will be sentenced to federal prison not to exceed 30 months followed by a term of supervised release to be determined by the court.
Page and his co-defendants, Michael Montoya, 36, Brian Acuna, 23, and Dianna Hernandez-Trujillo, 24, all of Clovis, N.M., were arrested in Nov. 2013, on a six-count indictment charging them with trafficking methamphetamine in three New Mexico counties. Count 1 charged Page and his co-defendants with conspiracy to distribute methamphetamine in Curry County between Oct. 2007 and Nov. 2013. Count 2 charged Montoya with possession of methamphetamine with intent to distribute on Oct. 11, 2011 in Curry County. Count 3 charged Montoya, Acuna, and Hernandez-Trujillo with possession of methamphetamine with intent to distribute on March 27, 2012, in Cibola County. Count 4 charged Montoya and Page with possession of methamphetamine with intent to distribute on Nov. 7, 2012, in Socorro County. Count 5 charged Montoya with attempting to purchase a residence with money derived from a drug trafficking activity on Sept. 22, 2010, in New Mexico. Count 6 charged Acuna with using and carrying a firearm in relation to a drug trafficking crime on March 27, 2012, in Cibola County.
During today’s proceedings, Page pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In his plea agreement, Page admitted that he was stopped for driving 85 miles per hour in a 35 mile per hour zone by a Socorro County Sheriff’s Deputy on Nov. 7, 2012, while traveling near Socorro, N.M. During a search of the vehicle driven by Page, the Deputy found approximately 1259 grams of methamphetamine in a hidden compartment in the vehicle. At the time, Page was transporting the methamphetamine to Clovis where the drugs were to be sold and where Page was to be paid for transporting the drugs.
Page remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
Acuna pled guilty on June 26, 2014, to Counts 1 and 3 of the indictment, charging him with participation in a methamphetamine trafficking conspiracy and possession of methamphetamine with intent to distribute. He also pled guilty to Count 6 of the indictment, charging him with using and carrying a firearm in relation to and in furtherance of a drug trafficking crime. In entering his guilty plea, Acuna admitted that on March 27, 2012, he and a co-defendant were stopped by police while transporting methamphetamine from California to Clovis. At the time of the stop, Acuna and the co-defendant knew that a large quantity of methamphetamine was concealed in a secret compartment in the vehicle and that additional methamphetamine was in a backpack in the vehicle. Acuna also admitted that he had a revolver and ammunition in the vehicle for protection.
At sentencing, Acuna faces a mandatory minimum of 10 years to a maximum of life imprisonment on the methamphetamine trafficking charges. On the gun charge, Acuna faces a mandatory minimum of five years in prison which must be served consecutive to any sentence imposed on the drug charges. Acuna remains in federal custody pending his sentencing hearing, which has not yet been scheduled.
Montoya and Hernandez-Trujillo have entered not guilty pleas to the indictment. Montoya is pending trial and Hernandez-Trujillo is participating in a judicial pretrial diversion program. Charges in indictments are merely accusation and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Socorro County Sheriff’s Office. Assistant U.S. Attorneys Sean J. Sullivan and Jennifer M. Rozzoni are prosecuting this case.
Three Sentenced to Federal Prison for Filing Fraudulent Income Tax ReturnsRead the Press Release
ATLANTA – Three members of a local fraud ring—Rodney Henry, Tony Lamar Watkins, and Phyllis Grant—have been sentenced to federal prison for conspiring to defraud the United States by filing bogus income tax returns using stolen identities. The trio stole more than $800,000, all in the form of fraudulent tax refunds.
“Phony refund schemes that use stolen identities hurt the people whose names and personal information were illegally used, and honest taxpayers throughout the country who foot the bill for the fraud,” said Acting U.S. Attorney John Horn. “Identity theft remains a top priority of this office and will continue to be a priority until we end the victimization of our citizens through their stolen personal identities.”
“IRS Criminal Investigation will remain proactive in the investigation of individuals who engage in stealing the identities of innocent people,” said Veronica F. Hyman-Pillot, Special Agent in Charge. “These sentences should serve as a strong message that there are consequences for stealing and using other individual’s personal identifying information.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Rodney Henry, Tony Watkins, and Phyllis Grant worked together to use stolen identities to file federal income tax returns. Henry filed the tax-returns, which sought more than $1.9 million in refunds. Watkins assisted in the scheme by retrieving refund checks from mailboxes, forging signatures on the checks, withdrawing refunds from debit cards, and bringing checks to locations where they would be cashed. Grant opened two mailboxes for their scheme in Mableton, Georgia, and one in East Point, Georgia. She also provided Henry with some of the identities he used on the returns.
All defendants were sentenced by U.S. District Judge William S. Duffey, Jr., as follows:
- Rodney Henry, 43, of Atlanta, Georgia, has been sentenced to seven years, ten months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $895,699.28. Henry was convicted on this charge, as well as a charge of aggravated identity theft, on May 22, 2014, after he pleaded guilty.
- Tony Lamar Watkins, 49, of College Park, Georgia, has been sentenced to four years, seven months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $824,121.28. Watkins was convicted on this charge on May 23, 2014, after he pleaded guilty.
- Phyllis Grant, 52, of Decatur, Georgia, has been sentenced to one year, two months in prison to be followed by three years of supervised release, a special assessment of $100, and ordered to pay restitution in the amount of $770,231.00. Grant was convicted on this charge after a jury found her guilty on March 12, 2015.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Christopher C. Bly prosecuted the case.
This announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.”
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.
Ten Individuals Sentenced in Operation "Battle of Honey Springs"Read the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced the sentencings of 11 defendants in federal court.
The following were sentenced to Drug Conspiracy, in violation of Title 21, United States Code, Section 846:
MICHAEL A. METZKER, a/k/a "LURCH", age 37, of Checotah, Oklahoma, was sentenced on May 27, 2015, to 281 months imprisonment, followed by 5 years of supervised release.
MICHAEL W. METZKER, a/k/a "CHIC", age 59, of Checotah, Oklahoma, was sentenced on June 30, 2015, to 120 months imprisonment, followed by 5 years of supervised release.
MARGARET CASEY, age 46, of Checotah, Oklahoma, was sentenced on June 30, 2015, to 78 months imprisonment, followed by 5 years of supervised release.
JACKIE DALE BRUMLEY, age 45, of Noble, Oklahoma, was sentenced on July 1, 2015 to 168 months imprisonment, followed by 5 years of supervised release.
CORNELL TYLEIZ HARVEY, age 30, of Oklahoma City, Oklahoma, was sentenced to 120 months imprisonment, followed by 5 years of supervised release.
SUNNY ANN MARTINEK, age 39, of Norman, Oklahoma, was sentenced on July 1, 2015 to 70 months imprisonment, followed by 5 years of supervised release.
Those sentenced for Conspiracy, in violation of Title 18, United States Code, Section 371 are as follows:
DEREK PARK, age 32, of Checotah, Oklahoma, was sentenced on June 30, 2015, to 60 months imprisonment, followed by 3 years of supervised release.
SHAWNA VANZANT, age 33, of Henryetta, Oklahoma, was sentenced on June 30, 2015, to 46 months imprisonment, followed by 3 years of supervised release.
SCOTT WESLEY DUNCAN, age 39, of Oklahoma City, Oklahoma, was sentenced on July 1, 2015, to 46 months imprisonment, followed by 3 years of supervised release.
LACEY RENEE PARK, age 31, of Checotah, Oklahoma, was sentenced on July 1, 2015, to 121 months imprisonment, followed by 4 years of supervised release, for Possession with Intent to Distribute 50 grams or more of a Methamphetamine mixture, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(a)(1)(B) and Title 18, United States Code, Section 2.
The Indictment filed on June 11, 2014, alleged that beginning in or about April 2013, up to and including April, 2014, in the Eastern District of Oklahoma and elsewhere, the defendants, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and Distribute Methamphetamine.
Michael A. Metzker, a member of the Universal Aryan Brotherhood (UAB), was incarcerated in the Oklahoma Department of Corrections from December 24, 2009, until January 8, 2014. Beginning in or before April 2013, up to an including January 8, 2014, Michael A. Metzker utilized cellular telephones, illegally smuggled into the prison, to coordinate the acquisition and distribution of methamphetamine in Eastern Oklahoma. Upon release from incarceration up to and including April 14, 2014, Michael A. Metzker and his coconspirators continued to acquire and distribute methamphetamine within Eastern Oklahoma.
The charges arose from a joint investigation by the Drug Enforcement Administration, Bureau of Indian Affairs, McAlester Police Department, the Muskogee Police Department, the Checotah Police Department, the Eufaula Police Department, the Stigler Police Department, Districts 18, 23, and 25 District Attorney’s Drug Task Force, the Oklahoma Highway Patrol, the Okmulgee County Sheriff’s Office, the McIntosh County Sheriff’s Office, the Pittsburg County Sheriff’s Office, the Oklahoma Department of Corrections, United States Department of Homeland Security, and the United States Marshal Service. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. All defendants were remanded into the custody of the United States Marshal Service pending transportation to the designated federal facility in which they will serve their nonparolable sentences.
Assistant United States Attorney Shannon Henson represented the United States.
South Carolina Man Sentenced to Eight Years in Prison for Shooting a DEA Special AgentRead the Press Release
Columbia, SC - Joel Perrin Robinson has been sentenced to eight years in prison for shooting a DEA special agent serving a search warrant at Robinson's house. Agents had obtained the warrant to search his home for chemicals used to manufacture PCP.
“This defendant shot an agent even though the agent was wearing a vest that clearly displayed the word “POLICE” in large, bold letters,” said Acting U.S. Attorney John Horn. “Instead of returning fire, the agents took the defendant into custody without further incident. Their poise under fire reminds us of the challenges that law enforcement agents face every day while serving and protecting the community.”
“This investigation is a reminder of the dangers that law enforcement officers endure daily while protecting and serving the public,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “Through training and tactics, the officers in this case showed poise by not returning fire, despite being fired upon. Instead, they identified and neutralized the threat. This investigation was successfully prosecuted because of the collective effort between DEA, federal, state and local law enforcement and the United States Attorney’s Office.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: On July 6, 2013, a house in Fairburn, Georgia burned to the ground. It burned for two days, and when investigators were finally able to enter the house, they found the charred remains of a large, clandestine phencyclidine (“PCP”) laboratory. Investigation into those responsible for the fire led DEA agents to Robinson’s residence.
On October 20, 2014, DEA agents executed a search warrant at Robinson’s Orangeburg, South Carolina home for chemicals used to manufacture PCP. The agents announced their presence by sounding sirens, flashing lights, and yelling “Police, Search Warrant!” When the agents entered, Robinson grabbed a laser-sighted pistol and fired it into a wall without ever identifying a target.
Robinson then put on slippers, walked to a door leading out to a swimming pool, and opened it. Standing in the pool area were two DEA agents. Robinson activated the laser sight on his weapon and aimed it at one of those agents, who was wearing a ballistic vest with the word “POLICE” written across the front in yellow letters. Robinson shot that agent, hitting him in the arm, causing serious injury. None of the other 19 DEA agents at the scene fired back at Robinson, but moved quickly to take Robinson into custody.
Joel Perrin Robinson, 33, of Orangeburg, S.C., was sentenced Monday July 6, 2015, to eight years in prison to be followed by three years of supervised release by J. Michelle Childs, U.S. District Judge for the District of South Carolina. He was ordered to pay restitution in the amount of $82,518.31, in addition to any medical bills the DEA Special Agent incurs over the next 90 days. On February 9, 2015, Robinson pleaded guilty to a charge of using a deadly weapon to assault an officer serving a search warrant.
Agents of the Drug Enforcement Administration and the Federal Bureau of Investigation investigated this case. Valuable assistance was also provided by the Georgia Bureau of Investigation, Georgia State Fire Marshal’s Office, Fulton County Fire Department, Atlanta Fire Department, Snellville Police Department, Henry County Sheriff’s Department, Clayton County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Office, Fifth Circuit Solicitor’s Office, and the Columbia Police Department.
Assistant United States Attorneys Michael Herskowitz, Vivek Kothari, Jennifer Whitfield, and Michael J. Brown, who have been admitted as Special Assistant U.S. Attorneys in the District of South Carolina, prosecuted 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.
South Carolina Man Sentenced to Eight Years in Prison for Shooting a DEA Special AgentRead the Press Release
Contact Person: Bob Page (404) 581-6016
Columbia, SC - Joel Perrin Robinson has been sentenced to eight years in prison for shooting a DEA special agent serving a search warrant at Robinson's house. Agents had obtained the warrant to search his home for chemicals used to manufacture PCP.
“This defendant shot an agent even though the agent was wearing a vest that clearly displayed the word “POLICE” in large, bold letters,” said Acting U.S. Attorney John Horn. “Instead of returning fire, the agents took the defendant into custody without further incident. Their poise under fire reminds us of the challenges that law enforcement agents face every day while serving and protecting the community.”
“This investigation is a reminder of the dangers that law enforcement officers endure daily while protecting and serving the public,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “Through training and tactics, the officers in this case showed poise by not returning fire, despite being fired upon. Instead, they identified and neutralized the threat. This investigation was successfully prosecuted because of the collective effort between DEA, federal, state and local law enforcement and the United States Attorney’s Office.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: On July 6, 2013, a house in Fairburn, Georgia burned to the ground. It burned for two days, and when investigators were finally able to enter the house, they found the charred remains of a large, clandestine phencyclidine (“PCP”) laboratory. Investigation into those responsible for the fire led DEA agents to Robinson’s residence.
On October 20, 2014, DEA agents executed a search warrant at Robinson’s Orangeburg, South Carolina home for chemicals used to manufacture PCP. The agents announced their presence by sounding sirens, flashing lights, and yelling “Police, Search Warrant!” When the agents entered, Robinson grabbed a laser-sighted pistol and fired it into a wall without ever identifying a target.
Robinson then put on slippers, walked to a door leading out to a swimming pool, and opened it. Standing in the pool area were two DEA agents. Robinson activated the laser sight on his weapon and aimed it at one of those agents, who was wearing a ballistic vest with the word “POLICE” written across the front in yellow letters. Robinson shot that agent, hitting him in the arm, causing serious injury. None of the other 19 DEA agents at the scene fired back at Robinson, but moved quickly to take Robinson into custody.
Joel Perrin Robinson, 33, of Orangeburg, S.C., was sentenced Monday July 6, 2015, to eight years in prison to be followed by three years of supervised release by J. Michelle Childs, U.S. District Judge for the District of South Carolina. He was ordered to pay restitution in the amount of $82,518.31, in addition to any medical bills the DEA Special Agent incurs over the next 90 days. On February 9, 2015, Robinson pleaded guilty to a charge of using a deadly weapon to assault an officer serving a search warrant.
Agents of the Drug Enforcement Administration and the Federal Bureau of Investigation investigated this case. Valuable assistance was also provided by the Georgia Bureau of Investigation, Georgia State Fire Marshal’s Office, Fulton County Fire Department, Atlanta Fire Department, Snellville Police Department, Henry County Sheriff’s Department, Clayton County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Office, Fifth Circuit Solicitor’s Office, and the Columbia Police Department.
Assistant United States Attorneys Michael Herskowitz, Vivek Kothari, Jennifer Whitfield, and Michael J. Brown, who have been admitted as Special Assistant U.S. Attorneys in the District of South Carolina, prosecuted 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.
####
Second Defendant Pleads Guilty; Admits His Role in Complex Scam to Steal Southern California HomesRead the Press Release
SAN DIEGO – Norwegian businessman Mohamed Daoud has pleaded guilty to laundering the proceeds of a complex scheme to steal real property.
According to his plea agreement, between July 2012 and February 2013, Daoud helped to launder some of the millions of dollars in proceeds generated by a group of confederates who posed as the real owners of Southern California homes in order to “sell” the properties to unsuspecting buyers – who later learned that they had actually purchased nothing. Immediately after each sale, Daoud admitted, the confederates would disburse the money, ensuring that the funds vanished and the buyers could not recover their stolen money.
During his guilty plea, Daoud admitted that he worked with a co-conspirator who used Daoud’s company, “Norway LLC,” as well as other business names, to pretend to acquire title to properties. The co-conspirator created fake deeds that made it appear the true owners had transferred the property to these companies, when in fact, the deeds were just forgeries, and the true owners had never really deeded the properties to anyone. He then arranged to have the forged deeds and other official documents recorded at the county recorder’s offices, so that the title records would make it appear that he was the property owner.
The confederates used a complex web of aliases and fake identities in order to shield themselves and protect the proceeds of the scheme. They diverted the proceeds of each transaction to bank accounts held in the name of fake businesses, then distributed the money further to conceal and disguise the location of the proceeds. Daoud admitted that during his participation in the money laundering conspiracy, his confederates induced at least six different buyers to purchase properties they did not own, leaving them with worthless claims to title and generating at least $1.4 million in proceeds from the fraud. Daoud received approximately $270,000 of the proceeds.
Another co-schemer, Daniel Deaibes, pleaded guilty in March 2015 to participating in the fraud. Deaibes admitted that he and others continued to operate the scheme until November 2014 (when Daoud, Deaibes, and another co-defendant were each indicted and arrested). In total, Daoud and Deaibes have admitted that they and their confederates fraudulently sold or attempted to sell at least 13 homes for more than $3 million.
As Deaibes admitted during his guilty plea, the schemers even took steps to thwart efforts by the true owners to regain clean title to the properties. In one instance, true owner Fannie Mae discovered that a fraudulent grant deed had been recorded on a property it owned in Rowland Heights, California. Shortly after discovering the fraudulent deed, Fannie Mae filed a lawsuit to recover control over the property and notify prospective buyers of the fraudulent deed. Undeterred, the schemers created a fake “Withdrawal of Lis Pendens” in an effort to proceed with the fraudulent sale. When Fannie Mae won a judgment in its favor and obtained a court finding that the deed was fraudulent, they created a fake “Satisfaction of Judgment” and recorded that fraudulent document as well.
Deaibes also admitted that he used the alias “John Moran” to pose as the seller’s representative in several of the fraudulent sales. He introduced himself as “Moran” and presented a fake driver’s license to two different notaries in 2014. Deaibes admitted that he signed fraudulent documents using this alias in an effort to sell or encumber properties that belonged to unsuspecting owners.
Most of these properties were actually owned by Fannie Mae and Freddie Mac -- government sponsored enterprises with a mission to provide liquidity, stability, and affordability to the United States housing and mortgage markets. As part of their mission, Fannie Mae and Freddie Mac purchase residential mortgages in the secondary market, enabling lenders to replenish their funds to finance additional single family loans. Fannie Mae and Freddie Mac can become the property owners if they own the mortgage loan at the time a home is foreclosed.
U.S. Attorney Laura E. Duffy commented, “The Department of Justice and our law enforcement partners are committed to protecting the recovering housing market from those who misuse the process to commit fraud. We will act aggressively to root out these invidious schemes and to protect the public’s confidence in the security of their most important investment, their homes.”
Leslie P. DeMarco, Special Agent in Charge, Western Region, Federal Housing Finance Agency – Office of Inspector General, said: “Mohamed Daoud will be held responsible for his role in a scheme that has caused loss to innocent victims and also worked to undermine the recovery of the housing market. FHFA-OIG will continue to work aggressively with our law enforcement partners to root out fraudsters and protect the taxpayers and unwitting victims in the housing market.”
Eric S. Birnbaum, FBI Special Agent in Charge in San Diego, commented, “The FBI is committed to working with our law enforcement partners in identifying, disrupting and dismantling complex fraudulent schemes that undermine our economy. Today's conviction is an example of the collective efforts of the FBI and our partners to hold accountable those individuals that seek to steal money from taxpayer funded programs.”
Erick Martinez, Special Agent in Charge, IRS – Criminal Investigation, said, “These types of real estate fraud schemes perpetuated on an unsuspecting public are very damaging to our economy. IRS-CI and our law enforcement partners are committed to protecting the integrity of our recovering housing market and the financial system. IRS-CI has the financial investigators and expertise to uncover these complex fraudulent transactions and follow the money trail to expose money laundering activities by these criminals.”
Daoud’s sentencing is set for September 28 at 9:00 am before U.S. District Judge Cynthia Bashant.
Daoud was arrested at Los Angeles International Airport as he prepared to depart for his home country of Norway. Deaibes and another co-defendant, Mazen Alzoubi, were arrested in November 2014 in a related case and charged with mail fraud. Deaibes is scheduled to be sentenced on August 31, 2015. No trial date has yet been set in Alzoubi’s case.
The investigation into this fraud scheme is continuing. Anyone with information relating to these charges or similar scams is encouraged to contact the San Diego FBI Field Office, (858) 320-1800 or the Federal Housing Finance Agency - Office of Inspector General hotline at (800) 793-7724.
DEFENDANT Case Number: 14CR3326-BAS Mohamed Daoud Age: 50 Norway CHARGESConspiracy to launder money, in violation of 18 U.S.C. § 1956(h)
DEFENDANTS PREVIOUSLY CHARGED Mazen Alzoubi, 14CR3325-BAS Age: 31 Rancho Cucamonga, California Daniel Deaibes, 14CR3325-BAS Age: 36 Rancho Cucamonga, California CHARGE
Maximum Penalties: 20 years’ imprisonment, $500,000 fine or twice the value of the property involved in the transaction, $100 special assessment, restitution.Mail fraud, 18 U.S.C. § 1341
INVESTIGATING AGENCIESFederal Housing Finance Agency – Office of Inspector General
Federal Bureau of Investigation
Internal Revenue Service – Criminal InvestigationsAs to defendant Mazen Alzoubi, the public is reminded that the charges are not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Santa Fe Woman Sentenced to Probation for Violating the Federal Marijuana LawsRead the Press Release
ALBUQUERQUE – MaryAnn DeStefano, 54, of Santa Fe, N.M., was sentenced today in federal court to five years of probation for participating in a marijuana trafficking conspiracy.
DeStefano’s co-defendants, Ashraf Nassar, 31, Phillip Anaya, 38, Daniel Trujillo, 32, Krystal Holmes, 29, and Sarah Romero, 36, are five Santa Fe residents charged with participating in an Oxycodone trafficking ring in a 16-count indictment that was filed in Sept. 2013. The indictment subsequently was superseded in Oct. 2013, to add Santa Fe resident Clarence Lee Cline, II, and DeStefano, and five new charges including conspiracy to distribute marijuana, manufacturing marijuana, and maintaining a place for the purpose of manufacturing marijuana.
Nassar, Anaya, Trujillo, Holmes and Romero were arrested in Sept. 2013 as part of a multi-agency law enforcement operation that included the execution of search warrants at three residences and a business in Santa Fe. The investigation, “Operation High Desert Bash,” was initiated in Jan. 2013 by the DEA’s Tactical Diversion Squad in Albuquerque, N.M., the Santa Fe Police Department and HIDTA Region III Narcotics Task Force in response to the epidemic increase in prescription drug abuse, addiction and overdose deaths in New Mexico, particularly among teens and young adults.
Operation Desert Bash investigation was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation primarily targeted a drug trafficking organization unlawfully distributing quantities of Oxycodone in Santa Fe County. Oxycodone is an opioid narcotic pain reliever similar to morphine that is medically prescribed to treat moderate to severe pain and can be habit-forming. Officers seized approximately 7300 mg of Oxycodone during the investigation.
Count 1 of the 21-count superseding indictment charged the Nassar, Anaya, Trujillo, Holmes and Romero with conspiracy to distribute Oxycodone in Santa Fe County between Dec. 2012 and Sept. 2013. Counts 2 through 4 charged Nassar, Anaya and Holmes with substantive Oxycodone distribution offenses, Nassar, Anaya, Trujillo, Holmes and Romero were charged with using telephones to facilitate drug trafficking crimes in Counts 5 through 17. Count 18 charged Nassar, Cline and DeStefano with conspiracy to distribute marijuana. Counts 19 through 21 charged Cline and DeStefano with conspiracy to distribute marijuana, conspiracy to maintain a place for the purpose of manufacturing marijuana, and maintaining a place for the purpose of manufacturing marijuana.
On March 27, 2015, DeStefano pled guilty to Counts 18 through 21 of the superseding indictment and admitted that between Jan. 2, 2013 and Sept. 26, 2013, she was involved in a conspiracy to manufacture and distribute marijuana in Santa Fe. DeStefano admitted that she and Cline grew marijuana in the home owned by Cline in Santa Fe.
All but one of DeStefano’s co-defendants has entered guilty pleas:
- Anaya pled guilty on Nov. 19, 2014, and was sentenced on April 9, 2015, to 46 months in prison followed by three years of supervised release.
- Trujillo pled guilty on Jan. 30, 2015, and was sentenced on April 2, 2015, to 18 months in prison followed by three years of supervised release.
- Romero pled guilty on Oct. 28, 2014, and was sentenced on March 26, 2015, to 18 months in prison followed by three years of supervised release.
- Holmes pled guilty on May 26, 2015 and Nassar pled guilty on June 2, 2015. Their sentencing hearings have yet to be scheduled.
Cline has entered a plea of not guilty and is awaiting trial. Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Tactical Diversion Squad of the DEA’s Albuquerque office, the Santa Fe Police Department and the HIDTA Region III Drug Enforcement Task Force, and is being prosecuted by Assistant U.S. Attorneys Shammara H. Henderson and Joel R. Meyers.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The HIDTA Region III Drug Enforcement Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and Santa Fe County Sheriff’s Office. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Sand Springs Residents Settle Trespass and Destruction of Keystone Lake Public Property ClaimsRead the Press Release
TULSA, Okla.—Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma, announced today that Robin Beaty and David Hester have paid $20,000 in civil penalties to settle allegations of trespass and destruction of public property. The Hesters own residential property on Keystone Lake adjacent to property owned by the United States and maintained by the United States Army Corps of Engineers.
According to the allegations, from July 10, 2013 to April 9, 2015, despite repeated cessation requests from the U.S. Army Corps of Engineers, the Hesters placed dirt and debris from the construction of their home on government property, stored heavy construction equipment owned by Mr. Hester’s company, HLH Realty Co., on government property and removed government boundary markers. Additionally, the United States alleged that the Hesters operated heavy equipment on government property which destroyed ground cover and left gouges on the land caused by the tracks of the equipment.
For wrongful injuries to timber upon the land of another, or removal thereof, Oklahoma law provides for not less than three times, nor more than ten times actual damages, plus costs and attorney’s fees. Oklahoma law also provides that the detriment caused by the wrongful occupation of real property is deemed to be the value of the use of the property for the time of such occupation and the costs of recovering the possession.
The case was handled by Assistant United States Attorney Marianne Hardcastle and Assistant District Counsel for the Army Corps of Engineers, Alexandria Tramel and Jason Chester.
Roswell Man Sentenced to 60 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Dominic A. Sedillo, 24, of Roswell, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 60 months in prison for his methamphetamine trafficking conviction. He will be on supervised release for four years after completing his prison sentence.
Sedillo was arrested on Jan. 24, 2014, in Roswell on a two-count indictment charging him with distributing methamphetamine in Eddy County, N.M., on April 25, 2013 and June 5, 2013.
On Feb. 27, 2015, Sedillo pled guilty to both counts of the indictment without the benefit of a plea agreement. In entering his guilty plea, Sedillo admitted selling 24 grams of methamphetamine in exchange for $1,200.00 in April 2013, and selling 58.8 grams of methamphetamine in change for $3,000.00 in June 2013. Both transactions occurred in Artesia, N.M.
This case was investigated by the Las Cruces office of the DEA and was prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
Rochester Man Pleads Guilty to Enticing A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Roger Eric Powell, 48, of Rochester, NY, pleaded guilty to enticement of a minor using a means and facility of interstate commerce before U.S. District Judge Elizabeth Wolford. The charge carries a minimum penalty of 10 years in prison, a maximum of life and a $250,000 fine.Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that between January 2014 and January 2015, Powell used the Internet and a cellular telephone to communicate with a female who was under the age of 14 to entice the minor to engage in sexual activity with him. Specifically, the defendant used Facebook messenger to engage in sexually explicit chats with the minor. The communications led to Powell meeting with the minor to engage in sexual activity.
The plea is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Sentencing is scheduled for October 6, 2015 at 1:30 p.m. before Judge Wolford.
Ringleader of $5 Million ATM Skimming Scheme Sentenced to More Than 10 Years in PrisonRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Sweden and extradited to the United States was sentenced today to 121 months in prison for directing a large-scale scheme that stole bank account information through a process commonly referred to as “ATM skimming,” in which conspirators secretly installed card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Marius Vintila, a/k/a “Dan Girneata,” 32, previously pleaded guilty before U.S. District Judge William J. Martini to Count One of a superseding indictment, conspiracy to commit bank fraud, and Count Two, aggravated identity theft. Judge Martini imposed the sentence today in Newark federal court.
In July 2013, as federal agents in New Jersey arrested various members of his large-scale ATM skimming scheme, Vintila fled the United States. On Sept. 24, 2013, he was apprehended in Sweden and subsequently extradited to the United States. Vintila has been held without bail since his arrival in the United States in February 2014.
According to documents filed in this and other cases and statements made in court:
Vintila was the ringleader of an extensive ATM skimming scheme that targeted thousands of bank customers and defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million.
Vintila and his conspirators constructed sophisticated card-reader devices capable of reading and storing customers’ bank account information as the customers performed routine bank transactions at ATMs. Vintila and his conspirators also concealed pinhole cameras in panels designed to match existing ATM components. Vintila then taught and directed several conspirators to install the devices on ATMs. Once installed, the card-reader devices secretly read identity and account information contained on the magnetic strip of customer ATM cards. The pinhole cameras recorded customer keystrokes as they entered their personal identification numbers.
After the account information was stolen, Vintila and his conspirators used the stolen data to create thousands of fraudulent ATM cards, which they used to withdraw millions of dollars from customers’ bank accounts. Vintila also used an alias, “Dan Girneata,” to open bank accounts, rent vehicles and rent multiple self-storage units where he stored skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds. Vintila also provided other conspirators with fake passports and aliases to use in furtherance of the scheme.
In addition to the prison term, Judge Martini ordered Vintila to serve two years of supervised release and pay restitution of $7,447,270.50. Of the 16 people charged in this scheme, 13 have been convicted.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli, along with special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division, Economic Crimes Unit, in Newark.
Defense Counsel: Brian Neary Esq., Hackensack, New Jersey
Prior Felon from Carlsbad Sentenced to 57 Months for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Eduardo Lerma, Jr., 32, of Carlsbad, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 57 months in prison for being a felon in possession of a firearm and for violating the terms of his supervised release on a prior federal conviction. Lerma will be on supervised release for three years following his term of incarceration.
Lerma was arrested in Aug. 2014, by the Bureau of Alcohol, Tobacco, Firearms and Explosives on a criminal complaint alleging that he unlawfully possessed a firearm on Aug. 14, 2014, in Eddy County, N.M. Lerma subsequently was indicted on that same charge on Nov. 12, 2014. According to court filings, Lerma was prohibited from possessing firearms because he previously had been convicted of two drug trafficking crimes and receiving a stolen firearm.
On Feb. 13, 2015, Lerma entered a plea of guilty to the indictment charging him with being a felon in possession of a firearm. He also admitted violating the conditions of his supervised release on a prior federal conviction. In entering his guilty plea, Lerma admitted being in possession of two rifles on Aug. 14, 2014. Lerma also acknowledged that he was prohibited from possessing firearms because he was a convicted felon and by the conditions of his supervised release.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the HITDA Region VI Pecos Valley Drug Task Force, the Carlsbad Police Department, and the Eddy County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HITDA Region VI Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department, Artesia Police Department, New Mexico Probation and Parole, and the 5th Judicial District Attorney’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Previously Convicted Sex Offender Pleads Guilty to Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland – Shaun Valente, age 30, of Montgomery Village, Maryland, pleaded guilty today to distribution of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS).
According to Valente’s plea agreement, from at least March 2013 through September 2014, Valente used his computer to distribute and to receive child pornography. On February 26, 2014, Dropbox, an online storage platform, reported to the National Center for Missing and Exploited Children (NCMEC) that images documenting the sexual abuse of minors had been uploaded to Valente’s Dropbox account. Valente admitted that he also received and distributed images depicting minors engaged in sexually explicit conduct through email.
On September 12, 2014, HSI Special Agents executed a search warrant at Valente’s residence and seized a notebook computer, cellular phone and flash drives that contained more than 4,000 images and 175 videos depicting children engaged in sexually explicit conduct. The child pornography included images of prepubescent children, and material that portrayed sadistic or masochistic conduct, or other depictions of violence.
According to his plea agreement, on March 22, 2005, Valente was convicted in Montgomery County Circuit Court for sexual abuse of a minor and a child pornography offense, for which he was sentenced to four years in prison, with all but 18 months suspended.
As part of his plea agreement, Valente 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).
Valente and the government have agreed that if the Court accepts the plea agreement Valente will be sentenced to 198 months in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 19, 2015 at 9:00 a.m. Valente remains detained.
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 HSI Baltimore for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kristi N. O’Malley and Joseph R. Baldwin, who are prosecuting the case.
Pleasant Hill Resident Sentenced to Twenty Years on Federal Child Pornography ChargesRead the Press Release
DES MOINES, IA – On July 1, 2015, Corey Lee Steffen, 37, of Pleasant Hill, Iowa, was
sentenced by U.S. District Court Judge James Gritzner to a 240 month term of imprisonment on
federal child pornography charges, announced U.S. Attorney Nicholas A. Klinefeldt. Judge
Gritzner also sentenced Steffen to 10 years of supervised release after completion of the term of
imprisonment, and Judge Gritzner ordered Steffen to forfeit the computer equipment he used to
commit the crime.
Steffen was caught in 2012 at the Pleasant Hill Public Library using its internet
connection to collect and distribute child pornography on his laptop computer. A forensic
analysis of his computer by law enforcement revealed he had illegally engaged in numerous sex
acts with a 14 year old Minnesota girl in 2010, and video recorded it. He also distributed some
of the videos to a friend in Nevada.
“Our Internet Crimes Against Children Task Force is a partnership of local, state, and
federal authorities who work together to take child abusers like Mr. Steffen out of commission,”
explained U.S. Attorney Nick Klinefeldt. “Protection of children is of critical importance to
national and Iowa law enforcement authorities, and our partnership with law enforcement
agencies like the Pleasant Hill Police Department is invaluable.”
The case was investigated by the Pleasant Hill, Iowa, Police Department, the Iowa
Crimes Against Children Task Force, the Iowa Division of Criminal Investigation, and the
Faribault, Minnesota, Police Department.
The case was prosecuted by the United States Attorney’s Office for the Southern District
of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which
was started in 2006 as a nation-wide effort to combine law enforcement investigations and
prosecutions, community action, and public awareness in order to reduce the incidence of sexual
exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call
the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Panel that will select the Community Police Commission announcedRead the Press Release
Mayor Frank G. Jackson and U.S. Attorney Steven M. Dettelbach announced today the appointment of an 11-member selection panel that will have the duty to appoint 10 representatives to the City of Cleveland Community Police Commission, as detailed in the agreement between the City of Cleveland and the U.S. Department of Justice.
“I have confidence in this panel to accomplish their goal of selecting qualified members for the Community Police Commission and to keep the city on track as we continue down the Road to Reform,” said Mayor Jackson.
“It is now time for this impressive panel to independently select 10 members of Cleveland's first-ever Community Police Commission, said U.S. Attorney Dettelbach. “Looking at the commitment, diversity and accomplishments of this group, I have every confidence that they will pick a panel that will serve the people well. I hope Cleveland's best and brightest will follow this group's lead and apply to serve.”
The Community Police Commission will be comprised of 13 members, 10 selected by the newly formed selection panel and three selected by City of Cleveland police unions. The Community Police Commission will make recommendations to the Chief of Police and the City, including the Mayor and City Council, on policies and practices related to community and problem-oriented policing, bias-free policing and police transparency.
The members of the selection panel are:
-
- Eugenia Cash, Chair, Alcohol Drug Addiction and Mental Health Services Board of Cuyahoga County
- Gabriella Celeste, Director, Case Western Reserve University Schubert Center for Child Studies
- Rev. Dr. Jawanza Colvin, Pastor, Olivet Institutional Baptist Church
- Colleen M. Cotter Esq., Executive Director, Legal Aid Society
- Rev. Jimmy Gates, Pastor, Zion Hill Missionary Baptist
- Anita Gray, President/CEO, Anti-Defamation League
- Phyllis Seven Harris, Executive Director, LGBT Center of Greater Cleveland
- Dr. Alex Johnson, President, Cuyahoga Community College
- Ronald B. Richard, President/CEO, The Cleveland Foundation
- Victor A. Ruiz, Executive Director, Ezperanza Inc.
- Timothy L. Tramble, Executive Director, Bell-Burten-Carr Development Corporation
The selection panel will ensure that members of the Community Police Commission include one representative from faith-based organizations, civil-rights advocates, the business/philanthropic community, organizations representing communities of color, advocacy organizations, youth or student organizations, academia and individuals with expertise in the challenges facing people with mental illness or the homeless. Additionally, the Cleveland Police Patrolmen’s Association, the Fraternal Order of Police and the Black Shield will each select a representative to serve on the Commission.
“We are honored to be part of the selection panel and look forward to getting to work,” stated the members in a joint statement. “We embrace our role in building community trust and engagement, and encourage a diverse pool of people to consider applying to serve on the Community Police Commission. We plan to regularly update the public on our progress, beginning with a public meeting in the near future in which we will explain the application process and the role of the Commission.”
-
Navajo Man from Magdalena, N.M., Sentenced to 25 Years in Federal Prison for Sexually Abusing Four ChildrenRead the Press Release
ALBUQUERQUE – Chris Apachito, 41, an enrolled member of the Navajo Nation who resides in Magdalena, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 25 years in prison for sexually abusing four minor females over a twenty-one-year period. Apachito will be on lifetime supervised release after completing his prison sentence. He also will be required to register as a sex offender after completing his prison sentence.
The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Director Jesse Delmar of the Navajo Nation Division of Public Safety.
“The defendant in this case sexually abused at least four children over the course of two decades, displaying an utter disregard for human decency and the law. The victims demonstrated remarkable courage by bravely reporting the defendant’s crimes and helping to bring an end to a sexual predator’s abusive actions,” said U.S. Attorney Damon P. Martinez. “I commend the FBI agents, the Navajo Nation’s tribal officers and the prosecutors for working together to protect our tribal communities. It is only through cooperative efforts like this that we can keep sexual predators away from our children.”
“I commend our tribal officers, the FBI and the U.S. Attorney's Office for their excellence and hard work on this case. The facts giving rise to this case are very unfortunate, and our prayers are with the victims and their families,” said Director Jesse Delmar of the Navajo Nation Division of Public Safety.
Apachito was arrested on Nov. 21, 2014, on an indictment charging him with sexually abusing a child under the age of 16 from May 2012 through Jan. 2014. The indictment alleged that Apachito violated the victim in locations within the Navajo Indian Reservation in Socorro County, N.M.
On March 26, 2015, Apachito entered a guilty plea to a felony information charging him with having unlawful sexual contact with four children between 1991 and 2012. In entering his guilty plea, Apachito admitted sexually molesting an eight-year-old child and a six-year-old child between Sept. 1991 and Oct. 1991. He also admitted sexually molesting a 16-year-old child in March 2006, and a 13-year-old child between May 2012 and Sept. 2012. Apachito committed these crimes in Alamo, N.M., which is within the Navajo Indian Reservation.
This case was investigated by the Albuquerque office of the FBI and the Navajo Nation Division of Public Safety. The case was prosecuted by Assistant U.S. Attorneys Kristopher N. Houghton and Niki Tapia-Brito 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/.
Monroe man sentenced to 72 months in prison for drugs, weapons chargesRead the Press Release
MONROE La. – United States Attorney Stephanie A. Finley announced that a Monroe man was sentenced Monday to 72 months in prison for possession with intent to distribute marijuana and possession of a firearm in relation to drug trafficking.
Edward A. Jordan, 49, of Monroe, was sentenced by U.S. District Judge Robert G. James on one count of possession of marijuana with intent to distribute and one count of possession of a firearm in relation to drug trafficking. He was also sentenced to five years of supervised release. According to evidence presented at the March 27, 2015 guilty plea, law enforcement searched Jordan’s residence on May 20, 2013 after receiving tips that distribution of marijuana and prescription pills were taking place. The search yielded a sizeable amount of marijuana, drug paraphernalia, prescription pills, a loaded Hi-Point 9mm carbine, 27 rounds of live ammunition and $1,102.
The ATF and the Ouachita Parish Sheriff’s Office Special Crimes Apprehension Team conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Monroe grocery store owner, workers sentenced for $7 million SNAP/WIC benefits fraud conspiracyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Monroe grocery store owner and workers were sentenced Monday for their roles in a $7 million scheme to exchange SNAP and WIC benefits to customers for cash and ineligible items.
Kimberlia Harris, 46, of Monroe, was sentenced to 51 months in prison and three years of supervised release, and was ordered to pay $7 million in restitution; Angela Woods, 28, of Monroe, was sentenced to five years of probation and ordered to pay $848,633 in restitution; and Willie Mae Woods-Jackson, 43, of Dallas, was sentenced to five years of probation and ordered to pay $337,220.76 restitution for one count of criminal conspiracy by U.S. District Judge Robert G. James. Juanita Woods, 38, of Monroe, was also sentenced by Judge James to five years of probation and ordered to pay $209,878 restitution for one count of theft of government money. According to evidence presented at the guilty pleas, the defendants conspired to provide customers cash and ineligible items for their Supplemental Nutrition Assistance Program (SNAP) benefits and Women Infant and Children (WIC) program benefits from August 2008 to early 2014 at Dee’s Grocery Store in Monroe where Harris was the owner, Angela Woods was a manager and cashier, Woods-Jackson was a cashier, and Juanita Woods was a cashier. During the time the scheme took place, they acquired approximately $7 million.
“This benefit program was set up to help those most in need in our communities and not as a cash grab for people seeking to make a quick buck,” Finley stated. “Business owners have a responsibility to administer these federal programs honestly and fairly. Not doing so will result in prosecution.”
The U.S. Department of Agriculture, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Monroe County Man Sentenced on Heroin Trafficking and Firearms Charges and A Second Man Enters Guilty PleaRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man was sentenced today to 37 months’ imprisonment by Senior United States District Judge Edwin M. Kosik for heroin trafficking and firearms charges and a second man involved in the same case pleaded guilty.
According to United States Attorney Peter Smith, Joseph Crawford, age 41, of Marshalls Creek, pleaded guilty in January 2015 to the charges of possession with intent to distribute heroin and being a convicted felon in possession of firearms. Crawford and Harry Rivera, age 39, of East Stroudsburg, were indicted by a grand jury in Scranton in November 2014.
The charges stemmed from an incident on June 17, 2014, in Monroe County, in which investigators found approximately 97 grams of heroin in a hidden compartment in a vehicle in which Crawford and Rivera were travelling. Police also seized a Glock pistol and a Smith &Wesson rifle after a search of Crawford’s residence in Marshall’s Creek. Crawford, who was previously convicted of a felony offense, is prohibited by law from possessing a firearm.
Senior Judge Kosik also ordered that Crawford be supervised by a probation officer for three years following his release from prison.
Rivera pleaded guilty today before Senior Judge Kosik to the charge of aiding the possession with intent to distribute heroin. The guilty plea was pursuant to a plea agreement filed by the government in June 2015.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the Stroud Area Regional Police Department. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
# # #
Monmouth County, New Jersey, Nursery School Teacher and Camp Counselor Charged with Receiving Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey man was arrested this morning on charges that he received images of child sexual abuse on his home computer, U.S. Attorney Paul J. Fishman announced.
James Paroline, 26, of Red Bank, New Jersey, an assistant at a nursery school (School 1) and as a summer camp counselor at a private school (School 2), both located in Monmouth County, New Jersey, is charged by complaint with two counts of receiving images of child pornography over the Internet. He appeared this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court and was detained pending a bail hearing scheduled for July 9, 2015.
According to the criminal complaint and statements made in court:
On March 1, 2015, and March 2, 2015, Paroline downloaded videos and images depicting child sexual abuse from “Website A,” an online bulletin board and website dedicated to the advertisement and distribution of child pornography. Law enforcement officers discovered the images and videos downloaded from the website, and the recipient’s username and IP address were traced back to Paroline’s residence. His home was searched today and numerous images and videos containing child pornography were found on computer equipment belonging to Paroline.
Each count of receiving child pornography over the Internet carries a minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s arrest. He also thanked the Red Bank Police Department, under the direction of Chief of Police Darren McConnell, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton
Kentucky Doctor Sentenced to Prison for Tax Fraud for Claiming Millions in Fraudulent Business ExpensesRead the Press Release
A London, Kentucky, doctor was sentenced today to federal prison in the U.S. District Court for the Eastern District of Kentucky in London for filing false federal income tax returns that claimed millions in fictitious business expenses, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Dr. Visa Haran Sivasubramaniam, 44, was sentenced by U.S. District Judge Amul R. Thapar to serve two years in prison and one year of supervised release to be served in the county jail with work release involving providing services at a local medical clinic. At sentencing, Judge Thapar also ordered Sivasubramaniam to pay a fine of $100,000 and restitution of $4,532,777 to the Internal Revenue Service (IRS).
According to court documents, Sivasubramaniam owned and operated Hematology Oncology Physicians East (HOPE), a medical clinic where he offered oncology and hematology services. From 2007 through 2009, Sivasubramaniam earned more than $16 million in total income from HOPE. However, on his 2008 and 2009 personal and corporate income tax returns, Sivasubramaniam underreported his income and claimed millions in false and fictitious medical supply expenses. Over a three-year period, he claimed nearly $13 million in fraudulent business expenses. On Jan. 9, Sivasubramaniam pleaded guilty to two counts of filing false individual income tax returns.
Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and Trial Attorneys Yael T. Epstein and Thomas Voracek of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Announces Settlement Agreement with Longview, Washington, Car Dealership to Protect Employment Rights of Military ApplicantsRead the Press Release
The Department of Justice announced today that it has reached a settlement with Bud Clary Chevrolet of Longview, Washington, to resolve a lawsuit it filed on behalf of Darrel Forney, a U.S. Navy Airman from Kelso, Washington. The lawsuit alleged that the company violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) when it terminated Forney in January 2014, after learning of his intention to join the armed services. If approved by the court, the settlement will resolve the allegations that the defendant violated the employment rights of Forney.
Bud Clary Chevrolet is a multiple-location car dealership and service center based out of Longview. According to the department’s complaint, filed in the U.S. District Court for the Western District of Washington in Seattle, the dealership violated USERRA by terminating Forney from his position as a lube technician in its service department after learning that he intended to join the armed services. Forney initially intended to join the Navy Reserves, but after being terminated and unable to find other employment, he enlisted as an active duty Naval Airman. Forney is currently stationed in Pensacola, Florida. His family continues to reside in Kelso.
“The brave men and women who volunteer for our Armed Forces should never have to fear losing their job for signing up to protect our country,” said Acting Associate Attorney General Stuart F. Delery. “This settlement demonstrates the Department of Justice’s commitment to protecting service members from unlawful employment discrimination and we will continue to devote time and resources to these efforts.”
“No service member should have to make a choice between keeping his civilian job and serving his country,” said Vanita Gupta, Head of the Civil Rights Division. “The Civil Rights Division is committed to preserving the rights and privileges of those who, through their bravery and dedication, secure the rights and liberties of all Americans.”
“While our dedicated men and women of the military protect our freedoms overseas, we must protect their interests here at home,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “The men and women who serve in our military cannot be penalized for that decision. This case is another example of the United States Attorney’s Office’s commitment to enforcing the laws that protect the employment rights of those who serve our country.”
Under the terms of the settlement, embodied in a consent decree that has been submitted for approval to the federal district court in Seattle, the defendants must pay Forney $15,500 to compensate him for lost wages. Among other things, the settlement also requires the defendants to provide training to Bud Clary Chevrolet’s management and human resources staff on the USERRA rights and obligations of employers and covered employees, including USERRA’s prohibition on terminating employees based upon their application to the military.
The case was litigated by Assistant U.S. Attorney Christina Fogg of the Western District of Washington, in collaboration with Andrew Braniff, Special Counsel and USERRA/U.S. Attorney’s Office Program Coordinator, in the Civil Rights Division’s Employment Litigation Section.
The Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s website at www.justice.gov/crt/emp and www.servicemembers.gov as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm. The Justice Department also has a special website dedicated to protection of service members’ rights which can be found at www.justice.gov/opa/blog/acting-associate-attorney-general-stuart-f-delery-announces-servicemembers-and-veterans.
Justice Department Announces Settlement Agreement with Longview, Washington Car Dealership to Protect Employment Rights of Military ApplicantsRead the Press Release
WASHINGTON - The Department of Justice announced today that it has reached a settlement with Bud Clary Chevrolet of Longview, Washington to resolve a lawsuit it filed on behalf of Darrel Forney, a U.S. Navy Airman from Kelso, Washington. The lawsuit alleged that the company violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) when it terminated Forney in January 2014, after learning of his intention to join the armed services. If approved by the court, the settlement will resolve the allegations that the car dealership violated the employment rights of Forney.
“While our dedicated men and women of the military protect our freedoms overseas, we must protect their interests here at home,” said U.S. Attorney Annette L. Hayes. “The men and women who serve in our military cannot be penalized for that decision. This case is another example of the United States Attorney’s Office’s commitment to enforcing the laws that protect the employment rights of those who serve our country.”
Bud Clary Chevrolet is a multiple-location car dealership and service center based out of Longview, Washington. According to the department’s complaint, filed in the U.S. District Court for the Western District of Washington in Seattle, the dealership violated USERRA by terminating Forney from his position as a lube technician in its service department after learning that he intended to join the armed services. Forney initially intended to join the Navy Reserves, but after being terminated and unable to find other employment, he enlisted as an active duty Naval Airman. Forney is currently stationed in Pensacola, Florida. His family continues to reside in Kelso, Washington.
Under the terms of the settlement, embodied in a consent decree that has been submitted for approval to the federal district court in Seattle, the defendants must pay Forney $15,500 to compensate him for lost wages. Among other things, the settlement also requires the defendants to provide training to Bud Clary Chevrolet’s management and human resources staff on the USERRA rights and obligations of employers and covered employees, including USERRA’s prohibition on terminating employees based upon their application to the military.
“The brave men and women who volunteer for our Armed Forces should never have to fear losing their job for signing up to protect our country,” said Acting Associate Attorney General Stuart F. Delery. “This settlement demonstrates the Department of Justice’s commitment to protecting service members from unlawful employment discrimination and we will continue to devote time and resources to these efforts.”
“No service member should have to make a choice between keeping his civilian job and serving his country”, said Vanita Gupta, Head of the Civil Rights Division. “The Civil Rights Division is committed to preserving the rights and privileges of those who, through their bravery and dedication, secure the rights and liberties of all Americans.”
The case was litigated by Assistant U.S. Attorney Christina Fogg in the U.S. Attorney’s Office for the Western District of Washington, in collaboration with Andrew Braniff, Special Counsel and USERRA/USAO Program Coordinator, in the Employment Litigation Section of the Civil Rights Division of the Justice Department.
The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm. The Justice Department also has a special website dedicated to protection of service members’ rights. You can find the information here: www.justice.gov/opa/blog/acting-associate-attorney-general-stuart-f-delery-announces-servicemembers-and-veterans
Judge Sentences Southwest PA Man to 15 Years in Prison for Violating Federal Drug, Gun and Money Laundering LawsRead the Press Release
PITTSBURGH - A resident of Arnold and Lower Burrell, Pennsylvania, has been sentenced in federal court to 180 months (15 years) imprisonment followed by five years supervised release on his conviction of violating federal narcotics, firearms and money laundering laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Omali P. McKay, 29, a citizen of Trinidad who formerly resided in Lower Burrell, Pa., and in Arnold, Pa.
Last year, McKay was sentenced to 15 to 30 years’ imprisonment following his conviction in the Court of Common Pleas of Westmoreland County, Pennsylvania, for sexually abusing a child. Today, Judge Cercone ordered that 120 months (10 years) of the 180-month federal sentence must be served consecutively to McKay’s sentence in Westmoreland County, while the remaining 60 months of the sentence would run concurrently.
According to information previously presented to the court, McKay conspired with others from 2006 to Aug. 25, 2012, to distribute five to 15 kilograms of cocaine and 280 to 840 grams of crack cocaine. McKay obtained kilogram quantities of cocaine from out-of-state sources of supply and then cooked much of that cocaine into crack. He then sold cocaine and crack in small quantities to street-level distributors and drug users in order to maximize his profits.
Also, McKay admitted possessing with intent to distribute one kilogram of cocaine seized from his Lower Burrell residence on Aug. 25, 2012, while simultaneously possessing an assault rifle in furtherance of the drug crime. Specifically, on Aug. 25, 2012, search warrants were conducted at McKay's residences. In the master bedroom closet of the Lower Burrell residence, officers discovered more than one kilogram of cocaine, an assault rifle, approximately 3,000 rounds of ammunition, two ballistic vests, and $272,000 in cash hidden in a bag containing McKay's identification cards. Seized from the garage were a 2004 Mercedes Benz and a 2004 Lexus.
Finally, McKay admitted to conspiring with three others to launder his drug trafficking proceeds. He used those laundered funds to purchase the Lower Burrell residence for $243,000 in cash in August 2011. Specifically, between May and July 2011, McKay repeatedly provided sums of cash to three individuals who then deposited the cash into their respective bank accounts and wrote checks back to McKay. Some of checks were written to make them appear to be payments for services rendered from McKay's non-existent lawn care business. In total, $243,500 was laundered in this manner in a little more than a month and a half.
The Mercedes Benz, the Lexus, the $272,000 in cash, and the residence in Lower Burrell will be forfeited since they were proceeds of McKay’s drug trafficking activities.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police, the Internal Revenue Service - Criminal Investigation Division, the Department of Homeland Security, the Drug Enforcement Administration, and the Lower Burrell Police Department for the investigation leading to the successful prosecution of McKay.
Joplin Business Owner Who Sold $1.1 Million of K2 Sentenced for Mail Fraud, Money LaunderingRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Joplin, Mo., business was sentenced in federal court today for his role in a mail fraud conspiracy and to money laundering related to the sale of more than $1.1 million of synthetic marijuana, also known as K2.
Timmy J. Ridgway, 53, of Weir, Kan., was sentenced by U.S. District Judge Beth Phillips to three years in federal prison without parole. The court also ordered Ridgway to forfeit to the government $285,949, which represents the proceeds of the mail fraud conspiracy, as well as his business property in Joplin, a residential property in Pittsburg, Kan., and $299,037 that was seized from his business and bank accounts.
On July 22, 2013, Ridgway pleaded guilty to distributing synthetic marijuana, also known as K2, at his business, The Looking Glass, 1860 W. 20th St., Joplin. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. Ridgway attempted to conceal his drug distribution by marketing K2 products as “incense” that was “not intended for human consumption.” In reality, however, the K2 products were intended for human consumption as a drug.
Ridgway obtained approximately $1,129,500 from the sale of approximately 94 kilograms of synthetic marijuana between December 2011 and March 2013. Ridgway deposited $830,467 into his bank accounts during that timeframe. Law enforcement seized $299,037 from Ridgway’s bank accounts on March 4, 2013.
According to court documents, Ridgway filled a vacuum created by the arrests of other distributors of K2 in the Joplin area. Effective law enforcement, which led to the arrests of his competitors, did not deter Ridgway’s criminal conduct. In fact, Ridgway’s profits skyrocketed between the summer of 2012 and March 2013.
On March 4, 2013, law enforcement officers executed a search warrant at The Looking Glass and seized approximately 615 packages of “Bizarro,” 268 packages of “Orgazmo,”and $7,575 in cash. The same day, approximately $123,512 was seized from two bank accounts.
The labels on these packages of synthetic marijuana stated that the contents were “incense” or “potpourri” and “not for human consumption.” However, Ridgway admitted that he distributed K2, which contained a controlled substance analogue, for human consumption.
K2 was delivered to The Looking Glass via United Parcel Service (UPS) and FedEx from distributors and manufacturers in Ohio and California on at least 80 occasions between Dec. 29, 2011, and March 4, 2013. Invoices seized from The Looking Glass recorded the delivery of and payment for 93,931.5 grams of synthetic marijuana.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Kansas Bureau of Investigation, the Missouri State Highway Patrol, the Jasper County Drug Task Force and the Joplin, Mo., Police Department.