Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
30 June 2015
Honduran national sentenced to 30 months in prison for possessing cocaineRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Honduran national was sentenced Monday to 30 months in prison for possessing cocaine with intent to distribute.
Gerson D. Guevara-Miranda, 35, of Honduras, was sentenced by U.S. District Judge Robert G. James on one count of possession with intent to distribute cocaine. According to evidence presented at the February 2, 2015 guilty plea, Louisiana State Police conducted a traffic stop on Guevara-Miranda’s vehicle on May 23, 2014 in Ouachita Parish. After a search of the vehicle, more than 1 kilogram of powdered cocaine and 23 kilograms of marijuana were found.
The DEA, Immigrations and Customs Enforcement-Homeland Security Investigations, and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Heroin Supplier to the Grape Street Crips Street Gang Admits to Conspiring to Sell Heroin in Newark, New JerseyRead the Press Release
NEWARK, N.J. – A heroin supplier to the Grape Street Crips street gang today admitted conspiring to distribute hundreds of grams of heroin in and around Newark, U.S. Attorney Paul J. Fishman announced today.
Gabriel Henderson, 35, of Newark, pleaded guilty before the U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of conspiring to distribute heroin.
In May 2015, over the course of three weeks, 50 alleged members and associates of the Grape Street Crips were charged in criminal complaints that alleged drug-trafficking, physical assaults, and witness intimidation. The charges were the result of a long-running investigation led by the DEA and FBI, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. During the investigation, 71 defendants were charged with federal and state charges.
In addition to controlling drug-trafficking across large swaths of Newark, the Grape Street Crips routinely engaged in acts of violence – including murder, shootings, aggravated assaults, and witness intimidation. A federal grand jury has returned a second superseding indictment charging two of the defendants – Kwasi Mack, a/k/a “Welchs,” 26, of Belleville, New Jersey, and Corey Batts, a/k/a “C-Murder,” a/k/a “Cee,” 30, of Newark, two leaders of the Grape Street Crips – with numerous violent crimes in aid of racketeering, including attempted murder and conspiracy to commit murder.
According to documents filed in this case and statements made in court:
Henderson admitted that between December 2014 and May 2015, he conspired with others to distribute brick quantities of heroin to members and associates of the Grape Street Crips. Henderson and his conspirators sold heroin in and around the Pennington Court public-housing complex located on Pennington Street and the John W. Hyatt public-housing complex located on Hawkins Street, both in Newark.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to the charges. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos; and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their work on the investigation.
The drug conspiracy count to which Henderson pleaded guilty carries a maximum potential sentence of 40 years in prison. Sentencing is scheduled for Oct. 19, 2015.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris, and Barry Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the federal criminal complaints and indictment are merely accusations, and the remaining defendants are presumed innocent unless and until proven guilty.
Defense counsel: Howard B. Brownstein, Union City, New Jersey
Head of the Gulf Cartel Sentenced to Federal Prison for Drug TraffickingRead the Press Release
BEAUMONT, Texas - U.S. Attorney John M. Bales announced today that the current head of the Mexican drug trafficking organization, the Gulf Cartel, or Cartel del Golfo, has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas.
Juan Francisco Saenz-Tamez, 23, of Camargo, Tamaulipas, Mexico, pleaded guilty on Jan. 13, 2015 to distribution and possession with intent to distribute cocaine, conspiracy to distribute and possession with intent to distribute marijuana, and conspiracy to commit money laundering. Saenz-Tamez was sentenced to 30 years in federal prison today by U.S. District Judge Marcia A. Crone and ordered to pay a money judgment of $100 million.
According to information presented in court, a federal investigation into the large-scale trafficking of illegal drugs from Mexico into the Eastern District of Texas led to the identity of Saenz-Tamez. The investigation revealed Saenz-Tamez was responsible for the shipment of one-half ton of cocaine and 90 tons of marijuana into the Eastern District of Texas and then to locations across the nation, including Florida, Ohio, Michigan, Mississippi, Louisiana, Washington D.C., Pennsylvania, Tennessee, Maryland and Georgia. As a result of this scheme, $100 million was laundered by Saenz-Tamez and his drug trafficking organization.
Saenz-Tamez was indicted by a federal grand jury on Sep. 5, 2013 and charged with conspiracy with intent to distribute cocaine, conspiracy with intent to distribute marijuana, and conspiracy to money launder. Saenz-Tamez was arrested by federal agents on Oct. 9, 2014 while shopping in Edinburg, Texas.
This case is the result of ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigations, Operation South Park, Operation La Mano Negra, Operation Frontera Chica and Operation Iceberg. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This joint law enforcement investigation was led by the U.S. Drug Enforcement Administration and Homeland Security Investigations, Houston HIDTA Group 33, Internal Revenue Service – Criminal Investigation, U.S. Marshals Service, Texas Department of Public Safety, Texas Attorney General’s Office, National Guard of Texas – Joint Counterdrug, Beaumont Police Department, Houston Police Department, Nacogdoches Police Department, Jefferson County Sheriff’s Office, and the Harris County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney John Craft.
######
Fort Collins man is sentenced to prison for tax evasion and ordered to pay the IRS over $200,000 in restitutionRead the Press Release
DENVER – Brian E. Annis, age 56, of Fort Collins, Colorado was sentenced yesterday by U.S. District Court Judge Christine M. Arguello to serve 9 months in federal prison, for income tax evasion, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Gilbert R. Garza announced. Following his prison sentence, Annis was ordered to serve 3 years each on supervised release. He was also ordered by Judge Arguello to pay $ 206,324.63 in restitution to the IRS. Annis pled guilty on September 26, 2014 and was indicted by a federal grand jury in Denver on April 8, 2014.
According to information contained in the plea agreement and indictment, from 2001 through 2006, Annis willfully failed to file his personal federal income tax returns for tax years 2001 through 2006 and willfully evaded the payment of taxes, penalties and interest assessed to him by the IRS for those tax years. In late 2004, Annis paid Creative Consulting Group and Joe Hill $2,100 to create an "International Business Trust" called Glacier Mountain Holdings, where Hill was appointed as the "Managing Fiduciary Party" so that Annis's personal residence could be placed in the trust. On December 3, 2004 Annis moved his personal residence into this trust for various reasons, including general asset protection and hiding the house from the IRS.
On December 30, 2005, in order to refinance the house, the house was transferred back to Annis and his spouse where it remained for nearly two years. On November 29, 2007, Annis sent an email to Hill in which stated: "For now, we need to get the house back into the trust. .... I don't know when the IRS is going to do an asset search (maybe they already have)." On December 4, 2007, Annis and his spouse transferred the house back into the trust.
Between December 2007, and March 2010, Annis annually paid Creative Consulting Group and Hill to maintain Glacier Mountain Holdings. Joe Hill was convicted on related charges in the District of Wyoming following a jury trial.
This case was investigated by Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U.S. Attorney Pegeen D. Rhyne.
Former Marshall County, WV teacher convicted of possession of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – Duane David Will, Jr., 33, of Moundsville, West Virginia, was convicted today of possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
Will repeatedly downloaded images of child pornography in April 2014 while employed as a teacher at John Marshall High School in Marshall County, West Virginia.
Will pled guilty today to one count of “Possession of Child Pornography.” He faces up to 20 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Marshall County Sheriff’s Department and the West Virginia Internet Crimes Against Children Task Force investigated.
U.S. Magistrate Judge James E. Seibert presided.
Former Energy Company Executives Arrested for Embezzling more than $1 Million from EmployerRead the Press Release
HOUSTON - Federal charges have been filed against the former CEO and former President of Chase Power Development alleging conspiracy to commit mail and wire fraud, mail fraud and wire fraud, announced U.S. Attorney Kenneth Magidson announced today.
John Upchurch, of Spring, was taken into custody yesterday and made his initial appearance before U.S. Magistrate Judge Mary Milloy, at which time he released upon posting $20,000 bond. Kathleen Smith, of Austin, surrendered to authorities this morning and will make her initial appearance before Judge Milloy at 10 a.m.
The 18-count indictment charges Upchurch, 52, and Smith, 46, with one count of conspiracy to commit mail and wire fraud, five counts of mail fraud and 12 counts of wire fraud.
According to the allegations in the indictment, from approximately June 2008 to June 2 012, Upchurch and Smith embezzled approximately $1,325,306.92 from Chase Power Development LLC. Chase Power was an oil and gas project created by Houston-based Quintana Capital Group in order to head start an oil and gas project in Corpus Christi.
In July 2008, Upchurch and Smith were hired as CEO and president, respectively, of the Chase Power Development project.
Throughout their employment, the defendants allegedly submitted false invoices for fake projects in order to receive company funds for their own personal expenses to include personal travel, hotels, country club memberships, personal car restoration, fishing equipment and a hunting trip. According to the allegations, Smith and Upchurch either mailed the company checks upon issuance or personally took the checks to the merchants.
In addition, the defendants allegedly used their company American Express credit cards for their own personal purchases. The indictment alleges Upchurch and Smith would segregate their illegitimate American Express expense account summaries and self-approve them for payment on personal items and expenditures.
If convicted of conspiracy to commit mail and wire fraud, they face up to 20 years in federal prison. Each conviction of either mail or wire fraud also carries up to 20 years of imprisonment. Upon conviction, the charges also carry a maximum possible $250,000 fine.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Department of Veterans Affairs Official Sentenced to 46 Months in Prison for Taking $1.2 Million in KickbacksRead the Press Release
TRENTON, N.J. – A former Department of Veterans Affairs (VA) employee who worked as a supervisory engineer at the VA’s campus in East Orange, New Jersey, was sentenced today to 46 months in prison for accepting more than $1.2 million in kickback payments in connection with VA contracts awarded to companies with which he had relationships, and to engaging in a scheme to defraud the VA by claiming one of those companies was owned by a service-disabled veteran when it was not, U.S. Attorney Paul J. Fishman announced.
Jarod Machinga, 45, of Hopewell, New Jersey, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of honest services wire fraud, one count of wire fraud and one count of engaging in a monetary transaction in criminally derived property. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
As a supervisory engineer, Machinga had the authority and influence to direct certain VA construction contracts to particular companies. Machinga partnered with a person – identified in the information as “Individual 1” – to set up three companies that could be used to obtain VA work. He then directed more than $6 million worth of VA construction projects to those companies. Machinga admitted he accepted $1,277,205 in kickbacks in exchange for his official action and influence between 2007 and July 2012.
Congress has established a program through which certain VA contracts are reserved for small businesses that are owned and controlled by service-disabled veterans. One of Individual 1’s companies entered into such a contract with the VA after Machinga falsely represented to the VA that it was a service-disabled veteran-owned small business – even though Individual 1 was not a veteran. Machinga then used his official position and influence at the VA to award such a contract to Company 1. The company was paid more than $3 million by the VA in connection with the contract.
Machinga also admitted that for many of the projects awarded to Individual 1’s companies, he recruited other contractors to perform the work so the companies were able to keep the money paid to them without having to incur the expense of actually completing the projects.
In addition to the prison term, Judge Cooper sentenced Machinga to serve one year of supervised release.
U.S. Attorney Fishman credited special agents of the Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey Hughes; the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division and Peter Gaeta of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Fortunato N. Perri Jr. Esq., Philadelphia
Former Contract Employee of Radford Army Ammunition Plant Pleads Guilty to Sexual AssaultRead the Press Release
ROANOKE, VIRGINIA – A former contract employee at the Radford Army Ammunition Plant, who was indicted in March 2015 on charges of sexually assaulting fellow employees at the plant, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to three charges related to those assaults. Joshua Linkous, 39, of Dublin, Virginia, pled guilty today to one count of aggravated sexual abuse by force against Victim 1, one count of abusive sexual contact of Victim 2, and one count of abusive sexual contact of Victim 3. “Today, the justice system compelled Mr. Linkous to take the first step to being held accountable for actions that can only be described as deplorable,” Acting United States Attorney Anthony P. Giorno said today. “He used his position and power to force the victims to submit to unwanted sexual contact and made them feel they were powerless to stop him. The courage of the victims in coming forth and being willing to testify against him, combined with the tenacious efforts of the investigators and prosecutors have put a stop to those abuses, and Mr. Linkous will have to serve at least 10 years behind bars for his acts.” “Mr. Linkous exploited his position and took advantage of victims who were vulnerable,” Special Agent in Charge Adam S. Lee, Federal Bureau of Investigation, stated. “The Federal Bureau of Investigation sincerely appreciates the efforts and cooperation of our law enforcement partners, particularly the United States Army’s Criminal Investigative Division, the Defense Criminal Investigative Service, and the United States Attorney’s Office, in investigating and prosecuting this case and getting justice for the victims. We will continue to work with our partners to ensure this type of criminal conduct does not go unpunished.” In a written statement of facts signed by Linkous and filed with the court during today’s guilty plea hearing, Linkous admitted to working at the Radford Army Ammunition Plant (“Arsenal”) from approximately January 2001 until August 2014. The Radford Army Ammunition Plant is a government-owned facility that is operated by defense contractor BAE Systems and manufactures, among other things, propellant for the country’s military ammunitions. While employed at the Arsenal, Linkous, and the victims in this case, worked in or near an area of the Arsenal known as the Tub House, which is part of the manufacturing process. Linkous admitted that on July 27, 2014, he coaxed Victim 1 into the Tub House, where no one else was working at the time. With Victim 1 standing near the lockers, Linkous admitted to grabbing her and pushing into a small, secluded break room area. The lights were off and he closed the door, pushed Victim 1 against a kitchen counter, pinning her there. Linkous then forcibly unbuttoned Victim 1’s coveralls, while she was attempting to prevent him from doing so. The defendant admitted that Victim 1 was crying and trying to make him stop. Linkous then forcibly turned Victim 1 around and pinned her stomach against the counter with his body behind her, he got his hands inside of her clothing, touched her bare breasts and penetrated her labia with his finger, over her objection and against her will. In a second incident, Linkous admitted that, in June 2014, he saw Victim 2 at her locker near the break room in the Tub House. When Victim 2 began to exit the Tub House, Linkous grabbed her by the upper arm and dragged her into a circuit breaker room in the Tub House. Linkous closed the door and shut the lights off, pushed her against a control panel and pinned her down with his body. He then forcibly kissed her, unbuttoned her coveralls and kissed her breasts against her will. Linkous put his hands inside her coveralls and touched her vaginal area over her underwear with his hand, against her will. Linkous also admitted that, sometime between August 2010 and December 2011, he approached Victim 3, who worked in a building near the Tub House. He admitted to putting his hand inside her coveralls near her vaginal area and asked her to go to the break room. Victim 3 said no and removed Linkous’ hand from her coveralls. Linkous then followed Victim 3 as she tried to walk away and forcibly put his hands inside her coveralls and under her underwear, against her will. Linkous removed his hand only when a co-worker approached. As part of the plea agreement, Linkous will be sentenced to between 10-15 years in federal prison, followed by at least 15 years of supervised release thereafter. He will also be required to register as a lifetime sex offender. The investigation of the case was conducted by the United States Army’s Criminal Investigation Division, the Federal Bureau of Investigation, and the Defense Criminal Investigative Service. Assistant United States Attorneys Erin Kulpa and Laura Rottenborn are prosecuting the case for the United States.Former Ceo of Paramount Management Sentenced in Manhattan Federal Court to Seven Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALEX V. EKDESHMAN, the Chief Executive Officer of Paramount Management, LLC, was sentenced yesterday to eighty-seven months in prison for his role in a commodities fraud scheme. EKDESHMAN ran a fraudulent scheme in which he solicited over $1.5 million from over 100 investors for the purpose of investing in foreign exchange currency transactions and then misappropriated the majority of investors’ funds to pay for personal and business expenses. EKDESHMAN was originally charged in May 2014, and he was sentenced yesterday by the Honorable Vernon S. Broderick, United States District Judge.
According to the Information, other documents filed in Manhattan federal court, and statements made during court proceedings:
From at least May 2011 through May 2013, EKDESHMAN ran a fraudulent commodities trading scheme. EKDESHMAN, who was chief executive officer of Paramount Management, LLC (“Paramount Management”), located in New York, New York, represented to investors that Paramount Management was in the business of investing in foreign exchange currency transactions, or “forex.” Through various employees of Paramount Management, EKDESHMAN solicited investor funds on the understanding that the funds would be solely invested in forex. As a result of these solicitations, EKDESHMAN and his employees collected at least $1.38 million from approximately 115 investors.
Contrary to EKDESHMAN’s promise to invest the investors’ funds in forex, EKDESHMAN misappropriated the large majority of investor funds. More than $1 million in investor funds were never traded in forex. Instead, EKDESHMAN used those funds to make payments to himself and his family members, to buy personal items, to pay for business expenses related to Paramount Management, and to pay employees of Paramount Management.
EKDESHMAN, 42, of Holmdel, New Jersey, pled guilty to one count of commodities fraud on February 5, 2015.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the United States Commodity Futures Trading Commission for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased 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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jessica A. Masella is in charge of the prosecution.
Former Arch Coal employee sentenced for lying about his role in kickback schemeRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Gary Griffith, 63, of Oceana, West Virginia, was sentenced today in federal court in Charleston to six months in federal prison, three years of supervised release, and a $5,000 fine. Griffith, who pled guilty last summer, admitted he made a materially false statement in a federal matter. Griffith also admitted that he lied about receiving kickbacks as an employee of the Mountain Laurel Mining Complex, a coal mine in Logan County, West Virginia, associated with a wholly-owned subsidiary of Arch Coal.
Griffith, the former maintenance manager at Mountain Laurel, admitted he and mine general manager David E. Runyon received cash kickbacks in the amount of at least $250,000 from an individual associated with the North American Rebuild Company, Inc (NARCO) since approximately 2002. NARCO provided shuttle cars to Arch Coal’s Ben Creek mine, and later at the Mountain Laurel Mining Complex. Griffith admitted that an individual, on behalf of NARCO, paid kickbacks to Griffith and Runyon for each shuttle car ordered for the mines. Griffith denied receiving kickbacks when questioned by federal agents.
Griffith was also ordered to pay $250,000 in restitution to Arch Coal, Inc.
Today’s charge stems from an investigation being conducted by the FBI, IRS Criminal Investigation, United States Postal Inspection Service, and the West Virginia State Police. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution.
Federal, state and local law enforcement join together to discuss civil rights with communityRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley joined the FBI, Louisiana State Police, Lafayette Sheriff’s Office, the Lafayette Police Department, University of Louisiana at Lafayette Police Department and others to discuss civil rights Monday at the UL Lafayette LITE Center.
More than 100 members of the community attended the panel discussion which included Finley, FBI New Orleans Division Special Agent In Charge Michael J. Anderson, FBI Lafayette Field Office Special Agent In Charge Don Bostic, FBI Supervisory Special Agent Daren Ogletree, Louisiana State Police Criminal Investigations Major Layne Barnum, Lafayette Parish Sheriff Mike Neustrom, Lafayette Police Chief Jim Craft and University of Louisiana at Lafayette Police Chief Joey Sturm. Each speaker addressed various concerns and comments from the public concerning civil rights in the Acadiana area. All said they agreed that more dialogue was necessary between the public and law enforcement. The panelists urged those present to contact their agencies with questions or report problems. The panel ended with comments from Louisiana NAACP state president Dr. Ernest Johnson.
“I appreciate the opportunity to participate on this panel,” Finley stated. “The discussion highlighted areas where law enforcement can improve services to the community and educate the public on the legal process, the law and their rights. It is through events like this that a better understanding between laws enforcement and the public they serve can take place. I want to thank the FBI for organizing this event, the University of Louisiana at Lafayette for allowing the panel to use the LITE Center, the local civic leaders who attended and community members who expressed their opinions and asked questions.”
Finley spoke about the Western District of Louisiana and the challenges of prosecuting federal cases in such a large district. The Western District covers 42 of the state’s 64 parishes and encompasses the cities of Lafayette, Shreveport, Monroe, Alexandria and Lake Charles. She added that civil rights concerns are a priority focus in her District, and her office will continue to conduct outreach programs to the youth, schools, universities and community groups. Finley said that a factor in reducing civil rights violations is educating the community about their rights. She said her office continues to work with local law enforcement through training, discussions and programs to address the needs of the public. She encouraged the public to contact her if they have reports of civil rights violations or questions.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010 to serve as the Western District of Louisiana’s chief law enforcement officer. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force and currently serves as Co-Chair of the U.S. Attorney’s Office of Management and Budget Committee.
Eric S. Miller Sworn in as U.S. AttorneyRead the Press Release
The Office of the United States Attorney for the District of Vermont announces that Eric S. Miller was sworn in as United States Attorney on Tuesday, June 30, 2015, by Chief U.S. District Court Judge Christina Reiss.
Miller has worked since 1999 in the Burlington office of the law firm of Sheehey Furlong & Behm PC, serving as partner since 2002. He has litigated a range of complex issues in federal civil and criminal cases, including trials and appeals. As an appointee to the Criminal Justice Act panel of the United States District Court, Miller has also represented indigent defendants in serious felony cases involving narcotics, weapons, and immigration-related charges. Miller clerked for the Honorable Fred Parker on the U.S. Court of Appeals for the Second Circuit in Burlington and is a graduate of Yale Law School and Duke University.
During the ceremony, Governor Peter Shumlin remarked on Miller as an extraordinary attorney. Senator Patrick Leahy noted the number of phone calls he had received in support of Miller’s nomination.
Following the ceremony, Miller stated, “the United States Attorney's Office plays a crucial role in keeping our communities safe and protecting the rights of all Vermonters. I am honored to be asked to lead the office and humbled by the responsibilities of the position. My predecessors, Tris Coffin and Geni Cowles, have set a high bar, and I look forward to serving with the team they have built."
Drug and Gun Supplier for Cherry Hill Gang Sentenced to over 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Nathaniel Lightford, a/k/a “Taboo,” age 35, of Windsor Mill, Maryland, today to 135 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin and cocaine, in connection with his supervision of street distributors belonging to a group known as “Coppin Court” which operated in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, since at least 2003, Lightford was a main supplier of drugs to the Coppin Court group in the down the hill section of Cherry Hill. From 2003 to 2005, Lightford supplied a group of Coppin Court members who ran a shop referred to as the “Purple City” with crack cocaine and heroin, and stored his drugs in a stash house located at 800 Bethune Road in Cherry Hill. In 2005, Lightford supplied heroin to a highly successful heroin shop run by members of Coppin Court. And on at least one occasion in 2012 or 2013, Lightford supplied at least one Coppin Court member with crack cocaine and heroin at Lightford’s music studio, which is located in nearby Brooklyn.
On July 5, 2013, in the 900 block of Bethune Road, Lightford stabbed a Coppin Court member in his back with a knife.
Lightford has also supplied the Coppin Court group with firearms, including at least one assault-type weapon. Lightford stored the firearms in locations around the Coppin Court area so that members could access the guns for their protection from a rival gang or from robbery.
Because Lightford supplied both narcotics and firearms to the members of Coppin Court, he was viewed and operated as a supervisor of the street distributors. During his participation in the drug conspiracy Lightford admitted to distributing between three and 10 kilograms of heroin, and between 840 grams and 2.8 kilograms of cocaine base.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal and Patricia McLane, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Drug Dealer Sentenced to 87 Months in PrisonRead the Press Release
PORTLAND, Ore. – Ivan Zarate-Alvarado, 27, originally from Michoacán, Mexico, was sentenced by U.S. District Judge Michael H. Simon to 87 months in prison following his federal conviction for possession with the intent to distribute methamphetamine. When the defendant is released from prison, he will serve three years of supervised release.
On June 27, 2013, investigators from the Clackamas County Interagency Task Force utilized a confidential informant (CI) to conduct a controlled buy of approximately two kilograms of methamphetamine from the defendant, who the CI knew was a methamphetamine dealer. When the defendant showed up to do the deal, he was arrested. Inside the defendant’s vehicle officers located approximately 1,917 grams of pure methamphetamine.
“Methamphetamine has been identified as the region’s most serious drug threat,” stated Acting U.S. Attorney Billy Williams. “Our office will continue to work with law enforcement to prosecute those significant dealers who profit by selling these poisons within our community.”
According to the Oregon High Intensity Drug Trafficking Area (HIDTA) Program:
Methamphetamine in the form of crystal methamphetamine, or “ice,” continues to be readily available and widely used throughout the Oregon HIDTA and represents the region’s most serious drug threat. Methamphetamine is a highly addictive central nervous system stimulant that is abused for its euphoric and stimulant effects. Chronic methamphetamine abusers exhibit violent behavior, confusion, insomnia and psychotic characteristics such as hallucinations and paranoia. Methamphetamine-related crime, such as identity theft, abused and neglected children, and other serious person and property crimes, continues to occur at a palpable rate and is prevalent throughout the HIDTA region.
Oregon and Idaho law enforcement officers surveyed in 2015 indicated methamphetamine remains a significant threat due to its level of use and availability; nexus to other crimes such as violent activity and property crime; societal impact; and connection to drug trafficking organizations, primarily MNDTOs [multi-national drug trafficking organizations]. Of law enforcement agencies surveyed, 62 percent reported methamphetamine as the greatest Oregon HIDTA Program drug threat to their area, with the majority indicating methamphetamine as the drug that contributes most to violent crime (88%) and property crime (69%). Furthermore, over 60 percent of officers ranked methamphetamine as the drug that serves as the primary funding source for major criminal activity.
Threat Assessment and Counter-Drug Strategy, Program Year 2016, Oregon HIDTA Program, at 12-13 (June 2015).
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation involving the Clackamas County Interagency Task Force, the Drug Enforcement Administration, Department of Homeland Security Investigations, the Portland Police Bureau and the U.S. Attorney’s Office. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply. The case was prosecuted by Assistant U. S. Attorney Scott Kerin.
Detroit drug dealer pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man found with heroin in Huntington in 2013 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. David Darrell Walker, 37, entered a guilty plea in federal court in Huntington to possession with intent to distribute heroin.
On August 8, 2013, members of the Huntington FBI Drug Task Force executed a search warrant at 1301 15th Street in Huntington. Officers found Walker in the residence and seized approximately 35 grams of heroin, 42 oxycodone pills and two guns. Walker admitted as part of his guilty plea that he intended to distribute the heroin and pills from the residence.
Walker faces up to 20 years in federal prison, and is scheduled to be sentenced on September 28, 2015.
The Huntington FBI Drug Task Force and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as 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 and heroin. 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 opiate painkillers and heroin in communities across the Southern District.
Department of Justice Seeks Forfeiture of $34 Million in Bribe Payments to the Republic of Chad’s Former Ambassador to the U.S. and CanadaRead the Press Release
The Department filed a complaint today seeking the civil forfeiture of approximately $34 million, which represents the cash value of shares in a Canadian energy company that the company used to bribe Chad’s former Ambassador to the United States and Canada for the purpose of influencing the award of oil development rights.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division made the announcement.
From 2004 to 2012, Mahamoud Adam Bechir, 50, served as Chad’s Ambassador to the United States and Canada. From approximately 2007 to 2015, Youssouf Hamid Takane, 52, was the Deputy Chief of Mission. As alleged in the complaint, in 2009, Bechir and Takane agreed to use their official positions to influence the award of oil development rights in Chad to Griffiths Energy International Inc., a Canadian oil company, in exchange for shares in the company. Thereafter, in or about October 2009, Griffiths Energy issued four million shares to the wives of Bechir and Takane and to another associate.
The complaint further alleges that Griffiths Energy agreed with Bechir and his wife that the company would pay a $2 million “consulting fee” to Bechir’s wife to influence the award of oil development rights in Chad. After securing the desired oil development rights in February 2011, Griffiths Energy allegedly transferred $2 million to an account held by a shell company created by Bechir’s wife. This bribe payment was commingled and laundered through U.S. bank accounts and real property, and eventually was transferred to Bechir’s bank account in South Africa, where he is now serving as Chad’s Ambassador. In 2013, Griffiths Energy pleaded guilty in Canadian court to bribing Bechir.
The $34 million that the United States seeks in forfeiture represents the cash value of the four million shares in Griffiths Energy that were provided to the wives of Bechir and Takane and to their associate. In a separate action filed in 2014, the United States also is seeking the civil forfeiture of over $100,000 in allegedly laundered funds traceable to the $2 million bribe payment. Takane resides in the United States.
The investigation was conducted by the FBI. The case is being handled by Trial Attorney Nalina Sombuntham and Senior Trial Attorney Steven C. Parker of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Griffiths Energy Complaint
Defendant sentenced to 10 years in prison for cocaine, methamphetamine conspiracyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that Jose Gabriel Mendez was sentenced Monday to 120 months in prison for conspiracy and possession with intent to distribute more than $1.5 million worth of cocaine and $75,000 worth of methamphetamine.
Jose Gabriel Mendez, 35, a Guatemalan citizen living in Texas, was sentenced by U.S. District Judge Donald E. Walter to a total of 120 months in prison for his conviction of one count of conspiracy to possess with intent to distribute cocaine and methamphetamine, one count of possession with intent to distribute cocaine, and one count of possession with intent to distribute methamphetamine. He was also sentenced to five years of supervised release. A federal jury found the defendant guilty after a two-day trial that ended on March 11, 2015 with the jury returning the guilty verdict after deliberating for approximately two hours. Evidence admitted at trial showed that law enforcement agents conducted a traffic stop on October 15, 2014, of a 1996 Dodge Dakota pickup truck Mendez was driving. Further investigation by the Calcasieu Parish Combined Anti-Drug Task Force (CAT) revealed 516 grams of methamphetamine and 15 kilograms of cocaine hidden in the four door panels and tire jack compartment of the truck.
The DEA and Calcasieu Parish Combined Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorneys David C. Joseph and Howard C. Parker prosecuted the case.
Defendant Sentenced to 33 Months for Insurance Fraud SchemeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Mark Edward Rowley, 62, of Dauphin Island, Alabama was sentenced today by Chief United States District Judge William H. Steele to 33 months imprisonment for wire fraud. The judge ordered that Rowley make restitution in the amount of $252,148.74 to victims of his crime and that he pay a $100 mandatory special assessment.
In March 2015, Rowley pled guilty to operating an insurance fraud scheme from June 2010 to December 2013. Despite having surrendered his Alabama insurance license in April 2010, Rowley falsely held himself out as a licensed insurance agent. He did business with individuals and entities in Alabama and the Florida panhandle, falsely claiming that he was buying his customers insurance through national insurance companies. Based upon Rowley’s false representations to his victims, they were misled into believing they had insurance coverage. Victims paid Rowley what they believed were insurance premiums, and he in turn frequently spent their money for his own benefit and gain. Rowley attempted to hide his fraudulent activity by issuing fraudulent insurance documents to his victims.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Gregory Bordenkircher and Sinan Kalayoglu.
Corpus Christi Man Gets 10 Years for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Kevin Justin Esquivel, 24, of Corpus Christi, has been ordered to federal prison following his conviction of distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Esquivel pleaded guilty March 12, 2015.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Esquivel to 120 months in federal prison to be followed by 10 years of supervised release. He will also be ordered to register as a sex offender.
At the time he entered his plea before U.S. Magistrate Judge Jason B. Libby, the court heard that agents with the FBI Dallas Child Exploitation Task Force, while using peer-to-peer software, were able to successfully download of various files containing child pornography from an IP address that was associated with Esquivel. As a result of this information, the FBI office in Corpus Christi was contacted to assist in the investigation.
In August 2014, agents executed a search warrant at Esquivel’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 4,000 images and more than 900 videos of child pornography. Esquivel admitted having an sexual interest in children between the ages of 10 and 13 years of age and having downloaded child pornography.
Esquivel was arrested on the federal charges in August 2014 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The charges against Esquivel were the result of an investigation conducted by the FBI and the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Contractor Admits Attempting to Bribe West New York, New Jersey, Official to Eliminate More Than $8.7 Million in Fire Code ViolationsRead the Press Release
NEWARK, N.J. – A North Bergen, New Jersey, man today admitted paying cash bribes to a West New York, New Jersey, fire official to eliminate millions of dollars in outstanding fines and penalties on buildings with fire code violations, U.S. Attorney Paul J. Fishman announced.
Victor Coca, 48, pleaded guilty before U.S. District Judge Esther Salas to Count One and Count Two of an indictment charging him with paying bribes to a local government employee.
According to documents filed in this case and statements made in court:
Coca was the owner and president of a general contracting company in West New York. Two buildings in West New York had outstanding fines for fire code violations. The first building, located on Bergenline Avenue and owned by a friend of his, had approximately $14,500 in fines and penalties for outstanding fire code violations. Coca agreed to pay a fire official for the West New York Bureau of Fire Prevention, a witness who was voluntarily cooperating with federal authorities, a $2,000 cash bribe to eliminate the outstanding fire code fines and penalties. On March 27, 2014, Coca handed the fire official a $2,000 cash bribe.
The second building, located on Hudson Avenue and partly-owned by Coca, had more than $8.7 million in fines and penalties for outstanding fire code violations. Coca paid a $5,000 cash bribe to the fire official in return for the fire official purportedly reducing the amount due to the West New York Bureau of Fire Prevention to the initial fine amount of $5,000.
The two bribery counts to which Coca pleaded guilty each carry a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Oct. 20, 2015.
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 plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel:
Howard Brownstein Esq., Union City, New Jersey
Nelson Gonzalez Esq., Dover, New JerseyComputer Industry Consultant Sentenced for Using Identity of Deceased InfantRead the Press Release
BOSTON – A former Boston computer industry consultant was sentenced yesterday in U.S. District Court in Boston for assuming the identity of an infant who died in 1966 and using that identity to obtain a Social Security number.
Steven Nolte, 51, was sentenced by U.S. District Court Judge Denise J. Casper to three years in prison and a fine of $3,000. In March 2015, following a five-day jury trial, Nolte was convicted of passport fraud, aggravated identity theft, and use of a falsely-obtained Social Security number.
Nolte was born in Arizona in 1963 as Steven Nolte, but in 1997, he assumed the identity of a four-day-old infant who died in 1966. At the time Nolte adopted this identity, he was in the process of stealing over $571,000 from a real estate company for which he had provided computer consulting services. Nolte then obtained a passport in the assumed identity and traveled to Costa Rica, where proceeds of the theft had been wire-transferred. Nolte thereafter traveled extensively in the South Pacific and ultimately settled in the Boston area, where he worked in the computer industry for many years under his assumed identity. In 1999, he applied for a Social Security number by using the same false identity. Nolte’s true identity was discovered in May 2012 when he submitted an application for a replacement passport in Boston under his assumed name. State Department officials realized that the Social Security number Nolte was using had not been issued to Nolte in the assumed name until he supposedly was 33 years old. Upon further investigation, agents learned of the infant’s death in 1966, and ultimately uncovered Nolte’s true identity.
United States Attorney Carmen M. Ortiz; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Brian Pérez-Daple and Robert E. Richardson of Ortiz’s Major Crimes Unit.
Colombian Paramilitary Leader Sentenced to More Than 15 Years in Prison for International Drug TraffickingRead the Press Release
A senior paramilitary leader and one of Colombia’s most notorious drug traffickers was sentenced today to serve 190 months in prison for leading an international drug trafficking conspiracy that imported into the United States ton-quantities of cocaine. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Deputy Administrator Jack Riley of the U.S. Drug Enforcement Administration (DEA) made the announcement.
“Through his leadership position in the AUC, Salvatore Mancuso-Gomez directed the manufacture and shipment of over 100,000 kilograms of cocaine into the United States and elsewhere,” said Assistant Attorney General Caldwell. “In addition to enriching himself, Mancuso-Gomez and the AUC used this drug money to raise and arm a paramilitary force of more than 30,000 fighters and cement his control over regions of Colombia. This case is yet another example of our continued commitment to collaborating with our international partners to prosecute criminals and warlords who traffic in illegal narcotics, violence and intimidation.”
“DEA is committed to relentlessly attacking global criminal networks who use drug trafficking as a means to finance their terrorist activities,” said Acting Deputy Administrator Riley. “The arrest and prosecution of Salvatore Mancuso-Gomez clearly illustrates this dedication. As a senior leader in the AUC, Mancuso-Gomez controlled huge amounts of cocaine production in Colombia, and oversaw its movement to the United States and other parts of the world. Proceeds from his drug trafficking enterprise were used to acquire weapons and further the AUC’s violent criminal agenda. DEA is pleased that this significant narco-terror leader has faced justice in a U.S. court of law.”
Salvatore Mancuso-Gomez, aka El Mono and Santander Lozada, formerly of Monteria, Colombia, pleaded guilty in October 2008 to one count of conspiracy to distribute cocaine knowing and intending that it would be imported into the United States. U.S. District Judge Ellen Segal Huvelle of the District of Columbia imposed the sentence.
According to the statement of facts agreed to as part of his guilty plea, Mancuso-Gomez held one of the highest level leadership positions within the Autodefensas Unidas de Colombia (United Self Defense Forces of Colombia or AUC), a terrorist and paramilitary organization in Colombia. In September 2001, the AUC was designated a Foreign Terrorist Organization by the U.S. Department of State. In May 2003, the AUC was placed on the Significant Foreign Narcotics Traffickers list by order of the President, pursuant to the Foreign Narcotics Kingpin Designation Act. In February 2004, Mancuso-Gomez individually was designated as a Tier II Kingpin by the Department of Treasury’s Office of Foreign Assets Control, subjecting him to severe economic sanctions under the Kingpin Act.
The statement of facts also established that the AUC consisted of approximately 30,000 armed soldiers organized into blocs (or regions) with commanders for each bloc. In connection with his guilty plea, Mancuso-Gomez admitted that, from the mid-1990s through 2004, he directed thousands of soldiers in two blocs of the AUC, controlling large areas where cocaine was produced.
Mancuso-Gomez admitted that the AUC produced approximately 2,000 kilograms of cocaine per month during the conspiracy, and that he and members of the organization transported the cocaine to the coastal areas of Colombia where it was loaded onto go-fast boats and other vessels for ultimate transportation to the United States and Europe. Mancuso-Gomez also admitted that he levied taxes on other narcotics traffickers who needed passage through AUC-controlled territories, and that he used proceeds from his drug trafficking activities to purchase weapons and other supplies for AUC activities. Mancuso-Gomez further admitted that he and the AUC maintained tight control of their territories in Colombia through intimidation of corrupt members of the Colombian government, including law enforcement and military personnel and politicians.
Today’s sentence does not account for violations of Colombian human rights-related laws allegedly committed by Mancuso-Gomez, which are being addressed in Colombia through the Justice and Peace process – a legal framework enacted in 2005 to facilitate the demobilization of its paramilitary organizations – and Colombian criminal justice system.
The case was investigated by DEA’s Bogotá and Cartagena, Colombia, Country Offices, and the DEA Special Operations Division. The government of Colombia provided unprecedented assistance through the investigation, prosecution and sentencing phase of this case.
The case was prosecuted by Trial Attorneys Paul W. Laymon and Carmen Colon of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS). NDDS Judicial Attachés in Bogotá, Colombia; the Criminal Division’s Office of International Affairs; and the Prosecutor General’s Office of the Republic of Colombia (Fiscalia), including the Fiscalia’s Transitional Justice program, provided significant assistance.
Co-Conspirators Sentenced to over 10 Years for Federal Bank Fraud and Stolen Mail SchemeRead the Press Release
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced today that Shawn Dewayne Cox of Prairie Grove, Christopher Joseph Evans of Colcord, Oklahoma, Spencer Mason of Bentonville, and Erick Picker-Ramirez of Fayetteville were sentenced this week on one count each of Conspiracy to Commit Bank Fraud and Possession of Stolen Mail. Benjamin Ramsfield, of Greenland, had previously been sentenced to one count of Bank Fraud and one count of Possession of Stolen Mail. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
U.S. Attorney Eldridge commented, “Fraud and theft of mail are serious crimes that involve the personal finances of hard-working individuals and can have long lasting impacts on numerous victims. We remain committed to investigating and prosecuting those who perpetrate fraud and swindle others out of their hard earned money.”
In June and July 2014, numerous persons in the Northwest Arkansas area began reporting to law enforcement that checks they had placed in the mail to pay bills were coming through their bank accounts with altered information. The checks had been altered to be made payable to people they did not know and for amounts other than the amounts the checks were made out for. On July 11, 2014, law enforcement obtained a search warrant for a residence in Springdale which they had identified being used to “wash” checks. During a search of that residence, law enforcement recovered numerous pieces of opened and unopened mail that was not addressed to any of the occupants or that address, multiple personal checks belonging to persons other than the occupants that had been “washed”, checks that had not been “washed” and were made payable to persons to other than the occupants, and chemicals commonly used in the “washing” process. The residence belonged to Spencer Mason and his girlfriend. Mason, Christopher Evans, and several others were at the residence at the time of the search.
Shawn Cox was arrested and during a post-Miranda interview admitted that he had been involved with other individuals in stealing checks from mailboxes in Northwest Arkansas, altering the stolen checks, and then cashing them at area banks. Cox estimated that he had passed 2-3 checks per day, and obtained $400-800 per check over the course of a few months, totaling approximately $24,000. After his arrest, Erick Picker-Ramirez admitted he had stolen numerous checks and “washed” them along with Cox, Mason and Evans. Mason admitted to stealing mail from residential mailboxes in the Northwest Arkansas area with Picker-Ramirez, Evans, and Cox. Evans also gave a post-Miranda statement admitting that he had stolen mail from approximately 100 residential mailboxes in the Northwest Arkansas area along with Mason and Picker-Ramirez. All of the banks where the checks were passed were insured by the Federal Deposit Insurance Corporation. During the investigation of that mail theft ring law enforcement identified another group operating in the same area during the same time, the leader of which was determined to be Benjamin Ramsfield. Investigators learned this group was operating out of a hotel room in Fayetteville and obtained a search warrant. During the search officers located a bleach pen and bleach, numerous pieces of stolen mail, and personal checks that had been “washed.” Ramsfield was arrested, interviewed, and admitted to stealing mail from area mailboxes in order to obtain personal checks. Ramsfield estimated he passed 40-50 checks and obtained approximately $20,000. Ramsfield also admitted to having several other individuals pass stolen and washed checks for him.
The defendants were sentenced as follows:
Shawn Dewayne Cox, age 31, of Prairie Grove, Arkansas was sentenced to 36 months imprisonment, three years of supervised release, and ordered to pay $20,870.28 in restitution -jointly and severally with co-defendants.
Christopher Joseph Evans, age 31, of Colcord, Oklahoma was sentenced to 24 months imprisonment, three years of supervised release, and ordered to pay $20,870.28 in restitution -jointly and severally with co-defendants, and $850 restitution.
Spencer Mason, age 34, of Bentonville was sentenced to 37 months imprisonment, three years of supervised release, and ordered to pay $20,870.28 in restitution - jointly and severally with co-defendants.
Erick Picker-Ramirez, age 35, of Fayetteville, Arkansas was sentenced to 18 months imprisonment, three years of supervised release, and ordered to pay $20,870.28 in restitution -jointly and severally with co-defendants.
Benjamin David Ramsfield, age 34, of Greenland, was charged separately and sentenced on May 15, 2015 to 41 months imprisonment, three years supervised release, and $8,353.82 restitution.
These cases were investigated by the Washington County Sheriff’s Office, the Fayetteville Police Department, the United States Postal Service and the United States Secret Service. Assistant United States Attorney, Aaron Jennen prosecuted the cases for the United States.
* * * E N D * * *
Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
California Man Pleads Guilty to Federal Methamphetamine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Luis Alexander Garcia, 18, of Santa Ana, Calif., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Garcia was arrested on Dec. 17, 2014, at the Amtrak Train Station in Albuquerque after a consensual search of his baggage by DEA agents revealed that he was carrying approximately 3.65 kilograms of methamphetamine. According to court documents, agents found four bundles of methamphetamine concealed within Garcia’s luggage. Garcia was subsequently indicted on Jan. 8, 2015, and charged with possession of methamphetamine with intent to distribute on Dec. 17, 2014, in Bernalillo County, N.M.
During today’s proceedings, Garcia pled guilty to the indictment. Garcia admitted that he was transporting methamphetamine on the Amtrak train and that he intended to deliver the drugs to another person.
At sentencing, Garcia faces a statutory maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. A sentencing hearing has yet to be scheduled.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Jacob Wishard is prosecuting the case.
Brunswick Man Sentenced to 19 ½ Years in Prison for Role in Drug Trafficking OrganizationRead the Press Release
BRUNSWICK, GA -- Larry James Carter, 38, of Brunswick, Georgia, was sentenced last week by United States Chief District Judge Lisa Godbey Wood to 235 months in federal prison for his role in a cocaine trafficking organization.
Carter previously pled guilty in October 2014 to conspiring to possess with intent to distribute cocaine. 8 other Brunswick residents were charged with Carter in an indictment returned by a federal grand jury in May 2014. The 8 other defendants, who also pled guilty and have been sentenced, include:
- Dedrick Wilkerson, 37, sentenced to 151 months in prison;
- Eric Demery, 41, sentenced to 151 months in prison
- Anthony Wilkerson, 42, sentenced to 113 months in prison;
- Demetrius Jones, 41, sentenced to 96 months in prison;
- Larry Roberson, 33, sentenced to 56 months in prison;
- Joseph Edward Lang, 37, sentenced to 27 months in prison;
- Earl Moore, 36, sentenced to 21 months in prison; and,
- Michael Doomes, 41, sentenced to 18 months in prison.
United States Attorney Edward Tarver said, “Defendant Carter and his cohorts were responsible for trafficking enormous amounts of cocaine in communities across the Southern District of Georgia. Due to the cooperative efforts of federal, state and local law enforcement partners, Carter’s organization is now out of business, and he and his fellow traffickers are serving lengthy prison sentences. This type of law enforcement cooperation is promoted by the Organized Crime Drug Enforcement Task Force (OCDETF) program, the keystone drug enforcement program of the Department of Justice.”
The case was the result of an investigation by the DEA, the Georgia Bureau of Investigation, the Glynn County Sheriff’s Office, the Glynn County Police Department, and the Brunswick Police Department, with assistance from the United States Marshals Service. Assistant U.S. Attorneys Carlton Bourne and Daniel Crumby prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Brotherly Love Ambulance Company Employee Pleads Guilty to Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – Fritzroy Brown, 38, of Philadelphia, PA, pleaded guilty today to conspiracy to commit health care fraud, false statements in a health care matter, and theft of government property. He faces a maximum possible statutory sentence of 25 years in prison, three years of supervised release, a $750,000 fine, and a $300 special assessment. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for September 10, 2015.
In July 2010, Feda Kuran, charged elsewhere, began operating Brotherly Love Ambulance, Inc. with a co-schemer. From approximately October 2010 through approximately October 2011, Fritzroy Brown, a licensed Emergency Medical Technician (EMT), transported patients for Brotherly Love even though those patients could walk and could have been transported safely by means other than ambulance and were, therefore, not eligible for ambulance service under Medicare and Medicaid requirements. Brown also transported patients in his personal vehicles and in a minivan owned by Brotherly Love, both of which lacked the lifesaving equipment found in an ambulance. Even when he transported patients in his personal vehicle, Brown completed ambulance “run sheets” for the trips and certified those sheets with his signature and EMT identification number. In order to make the transport appear as though it had been conducted by ambulance, those run sheets misstated the medical condition of the patient and the care provided to the patient during the transport. In addition, for a period of nearly six months during which he was working full time at Brotherly Love, Fritzroy Brown applied for and received unemployment benefits, repeatedly lying to the Pennsylvania Department of Labor by claiming that he was not working.
As a result of the overall scheme at Brotherly Love, the Medicare program was billed for more than $4.9 million and paid more than $2 million in inappropriate bills. As a result of Fritzroy Brown’s theft from the unemployment insurance program, the Commonwealth of Pennsylvania paid over $14,000 in improper benefits to him. Feda Kuran was sentenced in November 2014 to 64 months in prison.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary E. Crawley and Paul W. Kaufman.
Bristol Resident Sentenced to 5 Years in Federal Prison for Possession and Distribution of Child PornographyRead the Press Release
PROVIDENCE, R.I. – Mathew S. Antignano, 32, of Bristol, was sentenced today to 5 years in federal prison for possessing and distributing child pornography, announced United States Attorney Peter F. Neronha and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Antignano to serve 3 years supervised release upon completion of his prison term. Antignano pleaded guilty on April 10, 2015, to one count each of possession of child pornography and distribution of child pornography.
According to information presented to the court at the time of Antignano’s guilty plea, in July 2014, a member of the Rhode Island Internet Crimes Against Children (ICAC) Task Force detected an IP address being used to share numerous files of child pornography. Investigators quickly determined that the account holder and address of the IP holder belonged to Mathew Antignano.
On July 23, 2014, detectives assigned to the ICAC Task Force executed a court authorized search warrant at Antignano’s residence and seized a computer and other digital media which contained images of child pornography. Antignano was arrested a short time later at his place of employment.
A forensic examination of the computer and digital media resulted in the discovery of approximately 7,750 images and 180 video depicting child pornography primarily involving prepubescent males and females engaged in sexual acts with adults.
Antignano has been detained since his arrest.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
Homeland Security Investigations assisted the Rhode Island Internet Crimes Against Children Task Force in the investigation of this matter.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Bridgeport Grocery Store Operator Who Illegally Redeemed Food Stamp Benefits is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KHALID ABOUTAYEB, 47, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to approximately three weeks of imprisonment, time already served, three months of home confinement and three years of supervised release for illegally redeeming food stamp benefits at a grocery store he operated in Bridgeport. ABOUTAYEB also was ordered to pay $199,505 in restitution.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
ABOUTAYEB operated the M&J Deli Market, a grocery and convenience store located at 988 State Street in Bridgeport.
On December 17, 2014, ABOUTAYEB pleaded guilty to one count of unlawful use of food stamp benefits. In pleading guilty, he admitted that he and others, including his sister, Jamilia Aboutayeb, unlawfully exchanged customers’ food stamp benefits for ineligible items and cash at the M&J Deli Market between approximately December 2011 and February 2013. The investigation revealed that more than $285,000 in illegal SNAP benefits were redeemed at the store.
On January 8, 2015, Jamilia Aboutayeb pleaded guilty, admitting that she unlawfully exchanged customers’ food stamp benefits for ineligible items and cash at M&J Deli Market between approximately June 2013 and March 2014. On May 1, 2015, she was sentenced to five days of imprisonment, time already served, six months of home confinement and three years of supervised release. She also was ordered to pay restitution in the amount of $69, 209.
This matter was investigated by the U.S. Department of Agriculture, Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Felice M. Duffy.
Blackstone Man Pleads Guilty to Tax CrimeRead the Press Release
BOSTON – A Blackstone, Mass. man pleaded guilty today in U.S. District Court in Boston to charges that he impeded the IRS by cashing nearly $3 million in checks from his masonry business at check cashing services to evade the IRS.
John W. Lippolis, 55, pleaded guilty today to one count of corruptly endeavoring to impede the IRS. U.S. District Judge Richard G. Stearns scheduled sentencing for Oct. 14, 2015.
From 2005 to 2011, Lippolis was the sole proprietor of JW Masonry, a masonry company which operated in Rhode Island and Massachusetts. At various times, he also worked for his son’s business, JM Masonry Inc. When Lippolis was paid by check for work performed, he used check cashing services to cash the checks instead of depositing the funds into a bank account in an effort to avoid IRS scrutiny. Lippolis operated his business in cash, paid workers in cash, and requested that customers not write checks to him for amounts exceeding $10,000, which would trigger a reporting requirement for financial institutions that cashed the checks. Lippolis also failed to file tax returns for many years. The tax loss to the IRS exceeded $450,000.
The charging statute provides a sentence of no greater than three years in prison, one year of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Baltimore Armed Robber Sentenced to 15 Years in Prison for Conspiring to Rob Three Cell Phone StoresRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Justin Jose Snow, a/k/a “J.O.,” age 22, of Baltimore today to 15 years in prison followed by five years of supervised release for his role in a conspiracy to rob three cell phone stores in which Snow used a firearm.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Gary Gardner of the Howard County Police Department.
According to his plea agreement and court documents, Justin Snow, his brother Johnny Snow, their cousin Taylor Snow and Arkeene Redditt-Abrams planned to steal cash, cell phones and other electronic devices, and then sell the stolen merchandise. Prior to June 17, 2014, the defendants had shoplifted two to three cell phones at a time from stores and sold them, but decided that they could make more money by robbing cell phone stores of larger quantities of cell phones.
On June 17, 2014, the defendants used a car rented by Taylor Snow to travel to an AT&T store on Dual Highway in Hagerstown. Taylor Snow entered the store to conduct surveillance. Justin Snow then entered the store brandishing a gun and directed the store employee to get on the floor. Johnny Snow stood near the door and Redditt-Abrams remained in the car parked outside. When the defendants realized the store had cameras, they fled in the waiting car.
A few hours later the defendants drove to an AT&T store in Ellicott City, Maryland. Redditt-Abrams entered the store to “case” it. After he left, the Snows entered with Justin Snow again brandishing a gun. They stole cash, cell phones and tablet computers worth more than $18,000. Surveillance video at an adjoining gas station captured images of Taylor Snow’s car at the gas pumps and while it was parked in front of the AT&T store. The video showed the defendants leaving the car and entering the store, and a short time later, running from the store and getting back into the car.
After Johnny Snow’s arrest, on June 24, 2014, Justin and Taylor Snow traveled to Mechanicsburg, Pennsylvania, where Justin used a gun to rob a T-Mobile store of cash, cell phones and tablet computers. Police responding to the scene saw their car and pulled it over. They noticed that Justin Snow appeared to be changing his clothes while sitting in a passenger seat, and recognized clothing that matched witness descriptions of clothing worn by the robbers. At this point, Taylor Snow, who was driving, pulled away and a high speed chase reaching speeds of up to 100 mph ensued. As the robbers’ car approached an exit of Route I-81, it abruptly pulled over. Justin and Taylor Snow were arrested. A search warrant was executed for the car and police seized 28 unopened boxes each containing a cellphone stolen from the store.
Johnny Devon Snow, age 20; Taylor Yvonne Snow, age 23; and Arkeene Antoyn Redditt-Abrams, a/k/a “Duke,” age 26, all of Baltimore, previously pleaded guilty to their roles in the robberies. Johnny Snow was sentenced on June 4, 2015 to 150 months in prison. Taylor Snow was sentenced to nine years in prison. Redditt-Abrams is scheduled to be sentenced on August 15, 2015.
United States Attorney Rod J. Rosenstein praised the FBI and Howard County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, who prosecuted the case.
Anchorage Woman Sentenced to 36 Months in Prison for Possessing A Silencer and Being A Drug User in Possession of FirearmsRead the Press Release
Anchorage Woman Sentenced To 36 Months In Prison For Possessing A Silencer And Being A Drug User In Possession Of Firearms
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Megan Lindsey O’Connor was sentenced in federal court in Anchorage for one count of being a drug user in possession of a firearm, and one count of possession of an unregistered firearm. O’Connor previously pled guilty to the charges on June 16, 2014.
O’Connor, 29, was sentenced Friday, June 26, 2015, by United States District Court Judge Sharon L. Gleason, to 36 months in prison.
According to Assistant U.S. Attorney Bryan Schroder, O’Connor is an admitted methamphetamine user, and is connected to convicted drug trafficker Max Jewett. Jewett was sentenced in federal court on May 20, 2015, to 10 years imprisonment. In the summer of 2013, O’Connor rented a storage unit. When law enforcement officers searched the storage unit on November 18, 2013, they found 77 firearms, 27 of which had been stolen in the previous year. When Jewett pled guilty, he admitted he regularly traded drugs for stolen property. In addition to the stolen guns, the law enforcement officers found a 17-inch sawed off shotgun, a fully automatic machine gun, and silenced .44 magnum rifle. O’Connor pled guilty to possessing the silencer on the rifle.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the Anchorage Police Department for the investigation of this case.
Alton Man Sentenced for His Part in Cocaine Conspiracy and Firearm ChargesRead the Press Release
An Alton man, previously convicted by a jury in the Southern District of Illinois for Maintaining Drug-Involved Premises Near a School, Conspiracy to Distribute Cocaine, Felon in Possession of Ammunition, Felon in Possession of a Firearm, and Distribution of Cocaine Near a School, was sentenced to 240 months in federal prison on June 26, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Miles L. Musgraves, a/k/a, "Lou," 41, of Alton, Illinois received a 240 month sentence on the drug convictions, and a 120 month sentence on the firearm and ammunition offenses. Following release from imprisonment, Musgraves will serve a 6 year term of supervised release. Musgraves was also ordered to pay a $500 special assessment, and he forfeited his interest in the firearm and ammunition.
Evidence at trial showed that after Musgraves had been caught by police selling cocaine and in possession of ammunition, he agreed to work as a confidential informant. Instead of providing actual assistance, however, Musgraves planted cocaine and a gun in another man’s car and called police in an attempt to frame the other man. Police recovered the cocaine and the gun, and the other man was initially charged with felony offenses punishable by 6-30 years in prison. After the Alton police discovered what Musgraves had done, the charges against the other man were dropped, and Musgraves was charged with the offenses in federal court.
This case was investigated by the Alton Police Department with assistance from the Illinois State Police Crime Lab and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
Akron man sentenced to two years in prison for operating a dog-fighting ventureRead the Press Release
An Akron man was sentenced to two years in prison for operating a dog-fighting venture and related counts, law enforcement officials said.
Alvin Banks, 56, was also ordered to pay more than $44,000 in restitution to the Human Society of Greater Akron.
Banks pleaded guilty earlier this year to five counts: sponsoring and exhibiting a canine in an animal fighting venture; buying, selling, delivering, possessing, training and transporting canines for participation in an animal fighting venture; attending an animal-fighting venture; being a felon in possession of firearms and ammunition and possession with intent to manufacture and distribute less than 50 marijuana plants.
The sentenced was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office, Akron Police Chief James Nice, Summit County Sheriff Steve Barry and Summit County Prosecutor Sherry Bevan Walsh.
"This defendant had a dog-fighting ring at his home, and a firearm that he was forbidden from having," Dettelbach said. "The entire range of conduct uncovered at Banks' home was disturbing."
Banks is one of 10 people to plead guilty in federal court related to a dog-fighting operation uncovered in Akron last year. They will be sentenced in July.
Federal and local authorities raided a home on Cordova Avenue in Akron on Nov. 15, 2014 as part of an investigation into dog fighting. In addition to firearms, narcotics and more than $52,000 in cash, investigators discovered a blood-stained 16x16 foot ring used as part of an animal fighting venture, as well as two “break sticks” used to pry a dog’s mouth and teeth off another dog when the fight is finished. They also found eight pit bull or pit bull mixes, two of which were covered in blood and had fresh wounds from a fight that occurred just prior to the execution of the search warrant, according to court documents.
The investigation preceding the indictment was conducted by the Akron Police Department, the Federal Bureau of Investigation and the Summit County Sheriff’s Office, with assistance from the Summit County Prosecutor’s Office and the Humane Society of Greater Akron. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
29 June 2015
Wichita Woman Sentenced in Mail Theft Fraud SchemeRead the Press Release
WICHITA, KAN. – A Wichita woman was sentenced Monday to five years on federal probation for her role in a scheme to steal mail from postal boxes and cash counterfeit checks, U.S. Attorney Barry Grissom said. She and the other defendants also were ordered to pay more than $27,000 in restitution.
Jennifer R. Harper, 35, Wichita, Kan., pleaded guilty to one count of conspiracy to commit bank fraud and one count of conspiracy to steal mail. In her plea, she admitted that in 2013 and 2014 she and her co-defendants entered an agreement to steal mail from U.S. Postal Service blue boxes.
The defendants removed mail from U.S. Postal Service blue boxes. They opened the stolen mail and took information and checks from the mail. They used the information and the checks to create counterfeit checks and cash them.
Co-defendants include:
Justin Anderson, who was sentenced to 78 months.
Jeremy S. Robinson, who was sentenced to 15 months in federal prison.
Grissom commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Derby Police Department and Assistant U.S. Attorney Debra Barnett for their work on the case.
United States Attorney's Office recovers $1.5 million in case against home healthcare companyRead the Press Release
Josh J. Minkler, United States Attorney for the Southern District of Indiana, announced today a civil settlement with United Home Healthcare, Inc. and B&L Personal Services, Inc. (known collectively as “United”). Both companies are located in Indianapolis and are owned and operated by Byron and Laura Harris. The settlement will result in a total payment of $1.5 million to the United States and the State of Indiana.
United provided home healthcare services such as personal and attendant care services throughout Central Indiana. In 2012, the Department of Health and Human Services – Office of the Inspector General and the State of Indiana Attorney General’s Office Medicaid Fraud Control Unit began investigating a complaint that United was billing for services that it did not actually provide. Agents and investigators with HHS and the Indiana Attorney General’s Office interviewed patients and former employees, and reviewed multiple patient files.
According to Assistant United States Attorney Shelese Woods, who handled the case for the United States, the review of patient files showed that from 2012 through 2014 United had engaged in a pattern of overbilling services. Specifically, the patient files and corresponding billing data showed that many services billed for personal care and attendant care services were not documented; that there were dates for which United was reimbursed where the patient file showed that the patient did not receive the service; or that United over-billed the number of service hours actually provided to the patient.
"The civil False Claims Act was created to serve as a tool for combating fraud, waste and abuse in federally funded programs," Minkler stated. "A financial injury to the United States is a financial injury to all of us. This recovery sends the message that health care providers must comply with various applicable state and federal regulations when billing the United States Government for services, or they will face consequences."
Under the False Claims Act, the Government may collect three times the loss it incurred, plus a fine of $5,500 to $11,000 for each false bill submitted. According to AUSA Woods, the estimated loss to the Medicaid Program was $589,042.60 for thousands of individual claims. United is paying $1,454,490.27 to the United States, which is more than two times the estimated loss. United has also agreed to pay $45,509.73 to the State of Indiana for its investigative fees and costs.
“It’s a brazen violation of public trust when a healthcare provider hired to assist patients then fraudulently bills the Medicaid program, as taxpayers ultimately are victims in such a scheme. With the legal tool of the False Claims Act that encourages whistleblowers to come forward, the State of Indiana and our federal counterparts are able to claw back the tax dollars that were wrongfully paid out and hold defendants accountable,” said Indiana Attorney General Greg Zoeller, whose Medicaid Fraud Control Unit (MFCU) can receive information about suspected fraud at this link: http://bit.ly/1JDtOK2.
In agreeing to these terms, United denied all liability under the False Claims Act. In investigating the case, HHS did not uncover any evidence of physical injury or harm to patients as a result of the conduct.
Two Defendants Sentenced to Prison Terms for 2014 Murder of Man in Northeast WashingtonRead the Press Release
WASHINGTON –William Smallwood, 23, has been sentenced to a 22-year prison term and Demitrich Jones, 17, has been sentenced to 18 years of incarceration on charges stemming from the killing of man during an attempted robbery of a laptop last year in Northeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
The defendants, both from Washington, D.C., pled guilty in April 2015, in the Superior Court of the District of Columbia, to second-degree murder for the death of Rashard Raigns. They were sentenced on June 26, 2015, by the Honorable Jennifer Anderson. Upon completion of their prison terms, Smallwood and Jones will be on supervised release for five years.
According to the government’s evidence, on June 3, 2014, Mr. Raigns, 33, purchased a laptop at a Best Buy store. Later, at about 10 p.m., Mr. Raigns laid a blanket out on the sidewalk in the 1900 block of Fenwick Street across from a retail distributor known as ProFish Limited and watched his laptop. Mr. Raigns had his personal items laid out on the blanket, including a backpack, some clothing, a container of Chinese takeout food, a laptop case and power cord.
Jones noticed the laptop and decided he wanted to take it. He then went home and told Smallwood and a juvenile about the laptop and they all agreed to rob Mr. Raigns. Jones grabbed a BB gun and Smallwood grabbed a handgun. Jones and Smallwood also carried T-shirts around their necks that they used to cover their faces. All three suspects then left the house and walked back to Mr. Raigns’s location.
Jones and Smallwood placed the shirts over their heads and approached Mr. Raigns, while the juvenile stayed further back and acted as a look-out. Jones tried to grab the laptop, but Mr. Raigns resisted and grabbed Jones’s arm. Jones broke free. Mr. Raigns then tried to get away, but Smallwood shot him. Jones and Smallwood walked away from the crime scene and went home. Once back home, Jones changed his clothes, got on a bike and went back to get the laptop computer. Mr. Raigns died from a single gunshot wound to his chest.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Fifth Police District of the Metropolitan Police Department. He also acknowledged the assistance provided by the U.S. Secret Service. He expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker, of the Victim /Witness Assistance Unit; Paralegal Specialist Vanessa Trent-Valentine; and Investigative Analyst Zachary McMenamin. Finally, he praised the efforts of Assistant U.S. Attorney Veronica Sanchez, who investigated, indicted and prosecuted the case.
Two Charged Plead Guilty to Bank RobberyRead the Press Release
LOUISVILLE, Ky. – Two defendants pleaded guilty on June 26, 2015, in U.S. District Court before Senior Judge Charles R. Simpson III, to a single charge of bank robbery by force or violence announced Acting United States Attorney John E. Kuhn, Jr.
Leonard Duane Sisk, age 54, of Cecilia, in Hardin County, Kentucky, and Justin Matthew Collinge, age 32, of Leitchfield, in Grayson County, Kentucky, pleaded guilty to the December 23, 2014 robbery of the Westport Bank in Glendale, Kentucky.
According to the plea agreements, on December 23, 2014, defendant Sisk, knowingly aided and abetted by defendant Collinge, who acted as the getaway driver, robbed the West Point Bank. Sisk admitted to wearing a disguise while inside the bank, to demanding money from the teller, and to pointing a toy pistol at the teller which was painted black. The teller handed Sisk $8,815.00. Collinge admitted to driving a vehicle provided by Sisk, to the bank and to waiting for the robbery to occur, before acting as the getaway driver subsequent to the robbery. Further, Sisk acknowledged his role in the robbery to detectives of the Kentucky State Police on January 5, 2015.
If convicted at trial, the defendants could have been sentenced to no more than 20 years in prison, followed by a three year period of supervised release and ordered to pay a $250,000 fine. Sentencing is scheduled before Senior Judge Simpson on September 11, 2015, in Louisville.
This case is being prosecuted by Assistant United States Attorney Randy Ream and is being investigated by the Federal Bureau of Investigation (FBI) with assistance from the Kentucky State Police.
Twice-removed Honduran Sentenced to 10 Months in Prison for Illegally Re-entering U.S.Read the Press Release
PITTSBURGH - A citizen of Honduras has been sentenced in federal court to 10 months incarceration and one year supervised release on his conviction of illegal re-entry by an alien into the United States, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Jose Samuel Mejia-Chavez .
According to information presented to the court, Jose Samuel Mejia-Chavez, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Oct. 2, 2006 and Feb. 27, 2009. Jose Samuel Mejia-Chavez was found to be illegally present in Harrison Township, Pennsylvania, on March 4, 2015.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Enforcement and Removal Operations, Department of Homeland Security for the investigation leading to the successful prosecution of Mejia-Chavez.
Tucker County woman convicted of fraudulently collecting government benefitsRead the Press Release
ELKINS, WEST VIRGINIA – Dorothy Lawson Jones, 66, of Hendricks, West Virginia, was convicted today of fraudulently collecting spousal death benefits from the United States Department of Veterans Affairs, United States Attorney William J. Ihlenfeld, II, announced.
Dorothy Lawson was previously married to a veteran who passed away in 1991. Lawson remarried in 1995 and continued to unlawfully collect spousal death benefits from the Department of Veterans Affairs until at least 2013. Lawson falsely reported on at least two government forms that she had never remarried.
Jones pled guilty today to one count of “False Statement in Document.” She faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government. The Department of Veterans Affairs Office of Inspector General investigated.
U.S. Magistrate Judge John S. Kaull presided.
Trafficker Guilty of Distributing Dangerous Counterfeit Viagra® and Cialis®Read the Press Release
HOUSTON – Martez Alando Gurley, 40, of Napa, California, has entered a guilty plea to conspiracy to traffic in counterfeit Viagra® and Cialis® and introducing misbranded prescription drugs into interstate commerce, announced U.S. Attorney Kenneth Magidson, along with Special Agent in Charge Brian M. Moskowitz of Homeland Security Investigations (HSI) in Houston and Special Agent in Charge Katherine A. Hermsen of the Food and Drug Administration - Office of Criminal Investigations (FDA-OCI), Kansas City Field Office.
Gurley admitted at his re-arraignment hearing today that he purchased 15,000 – 18,000 counterfeit Viagra® and counterfeit Cialis® tablets from an individual in China he knew as “Alice,” as well as an additional 3,600 – 4,800 tablets from another individual within the U.S. He admitted he knew the drugs were prescription medications and that he could not legally distribute them. He also said he knew the drugs were counterfeit.
“The introduction of counterfeit drugs into the market should be of concern to every consumer of these products,” said Moskowitz. “The best defense against unknowingly buying these untested items of unknown origin is to purchase them from legitimate authorized sources."
Gurley sold the counterfeit drugs to at least 11 individuals across the country for between $40 and $50 a bottle. Testing on samples of the counterfeit Viagra® revealed the drugs contained less than the 100 mg of active pharmaceutical ingredient (API), while the testing on the counterfeit Cialis® revealed small quantities of the Viagra® API and none of the Cialis® API. In addition, some of the counterfeit Viagra® tablets were found to contain the unrelated compound 2-MBT.
“Counterfeit prescription drugs pose a risk to the public health and undermine the public’s confidence in the safety and effectiveness of prescription drugs, which the FDA oversees,” said Hermsen. “We will continue to protect the public’s health by working to remove counterfeit drugs from the marketplace and bring counterfeiters to justice.”
U.S. District Judge David Hittner accepted the plea today and has set sentencing for Sept. 22, 2015. At that time, Gurley faces up to five years in federal prison and a possible $250,000 fine.
This charges are the result of a joint investigation with the FDA-OCI and HSI. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
Tonawanda Woman Sentenced for Fraudulently Obtaining Ssi BenefitsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Tracy Anderson, 43, of Tonawanda, NY, who was convicted of unlawfully receiving supplemental security income, was sentenced to three years probation by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $11,726 in restitution.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that between December 1, 2012 and February 1, 2014, the defendant received Supplemental Security Income benefits on behalf of her disabled son when in fact, the child was not living with her. Anderson received a total of $11,726 to which she was not entitled.
The sentencing is the result of an investigation from the Office of the Inspector General of the Social Security Administration, under the direction of Special Agent in Charge Edward J. Ryan.
Toms River, New Jersey, Sports Medicine Doctor Admits Accepting $60,000 in Cash Bribes for Prescription Referrals, Health Care FraudRead the Press Release
CAMDEN, N.J. – A sports medicine doctor with a practice in Toms River, New Jersey, today admitted accepting more than $60,000 in cash bribes in return for referring pain cream prescriptions and falsifying health records on behalf of Prescriptions R Us (PRU), a compound pharmacy in Lakewood, New Jersey, U.S. Attorney Paul J. Fishman announced.
James Morales, 45, of Toms River, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with conspiracy to accept kickbacks and commit health care fraud.
According to documents filed in this case and statements made in court:
Prescriptions R Us (PRU) was owned and operated by Vladimir Kleyman, 44, of Lakewood, New Jersey. As a compounding pharmacy, PRU prepared medication using different types and dosages of drugs in order to provide more personalized medications for patients. PRU supplied a topical cream for pain treatment that was made from ketamine (a Schedule III non-narcotic), lidocaine, diclofenac and other ingredients.
Morales operated Shore Sports Medicine, a medical practice in Toms River. Morales admitted that from February 2013 through December 2013, he accepted at least $60,000 in cash bribes from PRU in exchange for referring pain cream prescriptions.
Morales also admitted that on Dec. 19, 2013, Kleyman told Morales that the quantity of pain cream that Morales had prescribed was too high to get reimbursed by Horizon, a private health insurance plan. Kleyman asked Morales to start omitting quantity information on his prescriptions for the compounded pain cream. Morales admitted that he agreed to omit quantity information on prescriptions for patients enrolled in Horizon in order to help PRU obtain reimbursements.
The conspiracy charge to which Morales pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 5, 2015.
Kleyman previously pleaded guilty to conspiring to pay kickbacks in exchange for prescription referrals and committing health care fraud. His sentencing is scheduled for July 7, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jane H. Yoon and Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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: A. Ross Pearlson Esq., Matthew E. Beck Esq., William Finizio Esq., West Orange, New Jersey
Third Co-conspirator Pleads Guilty to Smuggling Cocaine Seized in BakersfieldRead the Press Release
FRESNO, Calif. — Jose Luis Montoya-Salazar, aka Rafael Salazar-Sanchez (Montoya), 42, of Mexico City, pleaded guilty today to conspiring with Jimmy Gil, 35, of Shafter, and Luis Ricardo Eslava-Corral (Eslava) 42, of Sinaloa, Mexico, to import, distribute, and possess with intent to distribute 38 kilograms, or about 84 pounds, of cocaine, United States Attorney Benjamin B. Wagner announced. Montoya also agreed to the forfeiture of over $3.1 million in cash that drug agents seized during the investigation of the case.
In pleading guilty, Montoya admitted that he had conspired with Eslava and Gil to smuggle the cocaine into the United States from Mexico at the Otay Mesa Port of Entry. The cocaine was off-loaded in Bakersfield, where Gil and Montoya took possession of the drug. Follow-up investigation resulted in the seizure of $3,104,661 in cash, representing drug proceeds, hidden in an asphalt roller at another location in Bakersfield. The seized cocaine has a street value of over $3 million.
Montoya is scheduled to appear for sentencing before U.S. District Judge Lawrence J. O’Neill in Fresno on September 21, 2015. He faces a mandatory minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Eslava and Gil previously pleaded guilty and are scheduled for sentencing on July 20 and July 27, respectively. Eslava and Montoya are subject to removal to Mexico after serving any prison sentence imposed.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, the Kern County Sheriff’s Office, the Tulare County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
Tennessee Man Sentenced to 10 Years for Illicit Sex with a MinorRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Tennessee man was sentenced in federal court today for enticing a minor victim to engage in illicit sexual activity in Lawrence County, Mo.
Dylan Wade Garcia, 29, of Huntingdon, Tenn., was sentenced by U.S. District Judge Beth Phillips to 10 years and one month in federal prison without parole. The court also sentenced Garcia to a 15-year term of supervised release following incarceration.
Garcia, who pleaded guilty on Dec. 19, 2014, admitted that he used the Internet and a cell phone between June 9 and 26, 2014, to entice a minor under the age of 17 to engage in illicit sexual activity in Lawrence County.
On June 26, 2014, the Marionville School District notified the Aurora-Marionville Police Department that the child victim was missing from summer school. An officer reviewed the middle school’s video surveillance of the parking lot and saw the victim getting into a car with Tennessee license plates. The officer recognized the vehicle as one she had seen the day before at the Aurora Inn Motel. Officers located Garcia’s vehicle at the motel and found Garcia and the victim in a motel room.
The victim reported that she met Garcia online a few weeks earlier; he told her he was 16 years old. They had discussed him coming to Missouri to have sex with her and they engaged in several sexual acts in the motel room.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Aurora-Marionville, Mo., Police Department and the Southwest Missouri Cyber Crimes Task Force.
Stone Mountain Tax Return Preparer Sentenced for Filing Fraudulent Tax ReturnsRead the Press Release
ATLANTA - Joan Leger has been sentenced to serve two years in federal prison for filing false tax returns that claimed over $4 million in fraudulent refunds for refugees who were unaware of the fraud.
“This defendant took advantage of refugees’ limited understanding of tax laws to file fraudulent tax returns in their names,” said Acting U.S. Attorney John Horn. “Her fraudulent actions cost American taxpayers millions of dollars.”
“An integral part of IRS Criminal Investigation’s mission involves detecting, investigating, and stopping fraudulent refund schemes,” stated Acting Special Agent in Charge, James E. Dorsey. “Special Agents work year round to investigate and root out unscrupulous return preparers like Ms. Leger.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Between 2008 and 2012, Leger operated two tax preparation businesses in Stone Mountain, Georgia; “J & Company Tax Service” and “1804 Tax Group, Inc.” While operating these businesses, she filed thousands of federal income tax returns that claimed fraudulent deductions, expenses, and credits, which resulted in her clients receiving fraudulent refunds. Leger’s scheme primarily targeted Bosnian refugees who spoke little or no English and had a limited understanding of tax laws. In particular, Leger included false income and created phony businesses, faking both income and expenses for those businesses. Leger received monetary fees from the fraudulent refunds. In total, Leger prepared tax returns claiming over $4 million in fraudulent refunds.
Joan Leger, 48, of Stone Mountain, Georgia, was sentenced to two years in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $134,961. Leger was convicted on March 12, 2015, after she pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Jeffrey Brown 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 Charleston man pleads guilty to federal drug chargeRead the Press Release
CHARLESTON, W.Va. – A South Charleston man pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Michael Andrew Rude, 34, pleaded guilty in federal court in Charleston to possessing heroin with the intent to distribute it. Rude admitted that on April 23, 2015, he had heroin at his home in South Charleston that he intended to sell. Rude also admitted that he had sold heroin to a confidential informant working with law enforcement on several other occasions in April.
Rude faces up to twenty years of imprisonment when he is sentenced on October 1, 2015.
The investigation was conducted by the Metro Drug Enforcement Network Team. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case is 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 and heroin. 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 pills and heroin in communities across the Southern District.
South Carolina Attorney Charged with Fraud and Money Laundering in UA Sorority House Furnishing SchemeRead the Press Release
BIRMINGHAM -- Federal authorities today arrested a South Carolina attorney on fraud and money laundering charges as part of a scheme that involved submitting false invoices for furnishings and equipment for a University of Alabama sorority house and receiving payment without providing the furnishings and equipment, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell, and U.S. Postal Inspection Service Inspector in Charge Keith Morris.
An eight-count indictment returned by a federal grand jury last week charges JENNIFER ELIZABETH MEEHAN, 38, with wire fraud, bank fraud and money laundering. According to the indictment filed in U.S. District Court, Meehan used interstate electronic communication to submit fraudulent invoices totaling about $95,000 to Greek Resource Services, a contract company that handles the finances for fraternities and sororities at UA. Meehan was in charge of furnishing the newly constructed Gamma Phi Beta sorority house between September 2013 and March 2015.
The indictment also charges Meehan with executing a bank fraud scheme involving about $375,000, in which Meehan opened an account at First Citizens Bank under a fraudulent business name and then submitted additional fraudulent invoices to Greek Resource Services. GRS then gave Meehan two checks totaling about $375,000, which she deposited into the newly opened First Citizens account.
Meehan, a former member of Gamma Phi Beta at Alabama, was acting in her position as president of the House Corporation Board of the Epsilon Lambda Chapter of Gamma Phi Beta Sorority in an unpaid, volunteer capacity during the course of the fraud, according to the indictment.
Meehan is charged with money laundering for, on four separate occasions, wiring more than $10,000 gained through the bank and wire fraud into accounts she owned.
Meehan could face a maximum penalty of 30 years in prison and a $250,000 fine if convicted of the mail fraud.
The U.S. Secret Service and the U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Seven New Haven-Area Men Charged after FBI Task Force Investigation into Heroin and Crack DistributionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that on June 24, 2015, a grand jury in New Haven returned an indictment charging the following individuals with federal narcotics offenses:
JEFFREY SMITH, aka “J-Money,” 21, of New Haven
ROBBIE SMITH, aka “Lil Rob,” 26, of New Haven
SEAN LONDON, 22, of New Haven
ROBERT OATHOUT, 35, of Branford
JASON LANGLEY, 39, of East Haven
HARRY ANASTASIO, 54, of East Haven
ANTONIO DELUCIA, 26, of WallingfordThis investigation was conducted by the FBI’s New Haven Safe Streets Task Force, which consists of FBI agents and officers from the New Haven Police Department, West Haven Police Department and the Connecticut Department of Correction. Six of the defendants were arrested on June 10, 2015. ROBBIE SMITH is currently in state custody on unrelated charges.
The indictment alleges that between February and May 2015, JEFFREY SMITH, ROBBIE SMITH and LONDON conspired with others to distribute heroin and crack cocaine. According to court documents and statements made in court, the three men shared a mobile telephone on which they were contacted by drug customers throughout the New Haven area. The men would then deliver the drugs that were ordered in exchange for cash.
JEFFREY SMITH, ROBBIE SMITH and LONDON are charged with one count of conspiracy to distribute heroin and cocaine base (“crack”). In addition, JEFFREY SMITH is charged with four counts of possession with intent to distribute, and distribution of, cocaine base, and one count of possession with intent to distribute, and distribution of, heroin. LONDON is also charged with one count of possession with intent to distribute, and distribution of, cocaine base. OATHOUT, LANGLEY, ANASTASIO and DELUCIA, who are alleged to be drug customers of the conspiracy, are each charged with one count of using a telephone to facilitate a narcotics trafficking felony offense.
If convicted of the charges, JEFFREY SMITH and LONDON face a mandatory minimum sentence of five years of imprisonment and a maximum term of imprisonment of 40 years on the conspiracy charge, and up to 20 years in prison on each distribution charge. ROBBIE SMITH faces a maximum term of imprisonment of 20 years, and OATHOUT, LANGLEY, ANASTASIO and DELUCIA each face a maximum term of imprisonment of four years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Jennifer R. Laraia.
Self-Styled "Sex Slave Trainer" Ryan Van Stevenson from Lansing Sentenced to 30 Years for Coercing and Enticing A 15-Year-Old Girl OnlineRead the Press Release
GRAND RAPIDS, MICHIGAN – Ryan Van Stevenson, 33, of Lansing, Michigan, received a 30-year sentence in federal prison on June 25, 2015, for coercing and enticing a minor online from 2012 to 2014. The judge ordered Stevenson to pay approximately $11,000 in restitution to the victim for counseling costs. Stevenson pled guilty in federal court in December 2014 and faced a possible sentence of 10 years to life.
While living with his wife and young children in Lansing in 2012, Stevenson met a 15-year-old girl from Oregon in a chatroom online. Over the next two and a half years, Stevenson molded her into being his "sex slave," giving her "assignments" to send him pornographic pictures of herself to his email handle of "sexslavetrainer." Stevenson sent her emails about how "slave training is future oriented," where the slave’s "job is to serve and make me look good." When she turned 18, Stevenson moved the victim into his family home to fill the role of "sex slave." It seemed that the teen moved voluntarily and was physically unharmed. The FBI executed a federal search warrant at Stevenson’s house soon thereafter, in August 2014, and found thousands of pornographic images of the victim as a child on Stevenson’s computers. The FBI also found photographs of Stevenson having sex with and molesting another child over a period of at least five years, starting when she was age 13 and Stevenson was 19. Additionally, agents discovered a briefcase filled with CDs of internet child pornography, screenshots of web camera chats with various other girls between approximately 14 and 17 years old, a large number of baggies containing individual pairs of girls’ or women’s underwear, a package from a now convicted child pornographer with a child’s picture in it, and videos Stevenson took of unknown women and teenage girls from the waist down out in public.
Stevenson told the judge at the sentencing hearing that he was a social misfit in high school, never had many friends, and was looking for acceptance. He could not answer why or how he believed that he could seek such acceptance from a child across the country. In delivering the 30-year sentence, U.S. District Judge Robert Holmes Bell described the offense as "reprehensible" and commented on Stevenson’s "complete lack of respect for the law."
In announcing the sentence, U.S. Attorney Patrick Miles stated, "The vast reach of the internet makes it easier than ever before for predators to find, befriend, and groom minors online for sexual behavior without the parents ever knowing. It is important to teach children in our community about the dangers of ‘fantasy’ relationships online, which can become all too real and beyond the child’s control."
"Online predators have become adept at leveraging the global reach and anonymity of the Internet to identify, contact, and exploit children," stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. "It is imperative that parents and loved ones educate children thoroughly regarding the dangers associated with ‘meeting’ strangers online. The FBI and its local, state, and federal law enforcement partners will continue to combat these depraved predators and bring to justice those who use technology to target our youth."
The federal investigation was conducted by the FBI. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the case. This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
San Juan County Man Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Casey Lamotte, 30, of Flora Vista, N.M., was sentenced today in federal court in Albuquerque, N.M., to 75 months in prison followed by two years of supervised release for his drug trafficking conviction.
Lamotte was one of 29 individuals charged with drug trafficking offenses as the result of a multi-agency investigation targeting drug trafficking in northwestern New Mexico. The investigation culminated on Feb. 26, 2014, when 26 of the defendants were arrested during a law enforcement operation led by Homeland Security Investigation (HSI) and the HIDTA Region II Narcotics Task Force. Two other defendants were arrested during the course of the investigation and the final defendant was arrested on March 3, 2014.
The 29 defendants were charged as a result of Operation “Brown Ice,” a year-long investigation that initially targeted a methamphetamine trafficking organization led by Isaac Anaya that distributed quantities of methamphetamine throughout San Juan County and expanded to include other drug trafficking activity in the area. The 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.
Thirteen of the defendants, including ringleader Isaac Anaya, 31, of Farmington, N.M., were charged in a 15-count federal indictment alleging a conspiracy to distribute methamphetamine in San Juan County from May 2013 through Sept. 2013. The remaining 16 defendants were charged with state drug trafficking and firearms offenses based on criminal complaints. During the course of the investigation, officers seized approximately five pounds of methamphetamine and five firearms. The law enforcement operation on Feb. 24, 2014, included the execution of eleven federal search warrants at two Bloomfield residences, four Farmington residences, two residences in San Juan County, two Bloomfield businesses, two Farmington businesses and a storage unit in Bloomfield. It also included the execution of three state search warrants at two residences in San Juan County and one Farmington residence. Officers seized numerous firearms, including a fully automatic Glock 19, a short-barreled rifle and a carbine with an obliterated serial number, four blasting caps, four small binary explosives and approximately 31.7 grams of methamphetamine during the execution of the search warrants and the law enforcement operation.
On Feb. 26, 2015, Lamotte pled guilty to conspiracy to distribute a controlled substance. In entering the guilty plea, Lamotte admitted that from May 28, 2013 through Sept. 25, 2013, he and his co-defendants conspired to distribute methamphetamine in San Juan County. Lamotte also admitted that he acted as a drug courier for Isaac Anaya by traveling from Arizona and California to Farmington to deliver methamphetamine to Isaac Anaya, and connected Isaac Anaya with other defendants in this case in order to obtain more methamphetamine. At the time of his arrest, Lamotte was traveling back to Farmington from California, and was found to be in possession of approximately 851 grams of methamphetamine.
The federal and state cases filed as a result of Operation “Brown Ice” were investigated by the HSI office in Albuquerque, San Juan County Sheriff’s Office, HIDTA Region II Narcotics Task Force, Bloomfield Police Department, Farmington Police Department and Aztec Police Department. Assistant U.S. Attorney Reeve L. Swainston is prosecuting the federal case, and Assistant District Attorney David Cowen of the 11th Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of 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.