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Wednesday 13 May 2015
Pittsburgh Man Charged with Theft of Deceased Mother's Social Security BenefitsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of Theft of Government Property, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on May 12, named Gilbert Anthony Lucas, 67.
According to indictment, Lucas converted to his own use Social Security benefits which were intended for his deceased mother.
The law provides for a maximum total sentence of ten years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Social Security Administration, Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Phoenix Cocaine Trafficker Sentenced to More Than 26 Years in PrisonRead the Press Release
PHOENIX – On May 11, 2015, Terance Taylor Prigge, 54, of Phoenix, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 26.6 years’ imprisonment followed by 10 years’ supervised release. Prigge was convicted by a federal jury on Feb. 12, 2015, of five felony charges that included conspiracy to possess with intent to distribute cocaine, conspiracy to commit money laundering, international money laundering, promotional money laundering, and possession with intent to distribute cocaine.
The trial evidence showed that Prigge’s drug trafficking organization transported at least 122 kilograms of cocaine from Latin America, into the American southwest, and then to Chicago from at least early 2010 to September 2013. The organization used private charter flights to transport the drugs from Phoenix and Southern California to Chicago. Prigge was arrested after he exited one of those flights with a co-conspirator in DeKalb, Ill. with 22 kilograms of cocaine in their luggage in September 2013.
The evidence further showed that Prigge had extensive contacts with sources of drug supply in at least two Latin American countries. He was convicted of International Money Laundering for organizing the transfer of $100,000 to an individual in Guatemala in support of a drug deal. He was also convicted of taking other steps to launder money in support of his drug trafficking. Prigge was convicted previously for trafficking cocaine from Panama into the United States and served seven years in prison.
The investigation in this case was conducted by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, the Scottsdale Police Department, and the DeKalb, Ill. Police Department. The prosecution was handled by Karen McDonald and Alexander Samuels, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-13-01363-PHX-GMS
RELEASE NUMBER: 2015-035_ Prigge
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Palmyra Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y. U.S. Attorney William J. Hochul, Jr. announced today that Cody Yerden, 20 of Palmyra, NY, pleaded guilty to possessing child pornography involving pre-pubescent minors before U.S. District Court Judge Charles J. Siragusa. The charge carries a maximum sentence of 20 years in prison, a fine of up to $250,000, or both.Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that Yerden was first identified during an online child exploitation investigation conducted by Homeland Security Investigations. Agents learned that the defendant was posting images of child pornography to online websites located outside the United States which depicted children as young as four years old being sexually abused. They traced the activity to Yerden’s home, and executed a federal search warrant in March 2014. In an interview conducted while agents were executing the search warrant, the defendant admitted to using specific terms to search out images of child pornography. Agents seized multiple digital items from Yerden and found over a thousand images and movies showing young children being raped on several computers and an iPod.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations under the direction of Acting Special Agent in Charge J. Michael Kennedy.
Sentencing is scheduled for August 19, 2015, at 10:00 a.m. before Judge Siragusa.
Owner of ‘Polygraph.Com’ Pleads Guilty to Training Customers to Lie During Federally Administered Polygraph ExaminationsRead the Press Release
A former Oklahoma City law enforcement officer and owner of “Polygraph.com” pleaded guilty today to obstruction of justice and mail fraud for training customers to lie and conceal crimes during polygraph examinations.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Assistant Commissioner Anthony Triplett of U.S. Customs and Border Protection’s Office of Internal Affairs and Special Agent in Charge James E. Finch of the Federal Bureau of Investigation’s (FBI) Oklahoma City Field Office made the announcement.
“Lying, deception and fraud cannot be allowed to influence the hiring of national security and law enforcement officials, particularly when it might affect the security of our borders,” said Assistant Attorney General Caldwell. “Today’s conviction sends a message that we pursue those who attempt to corrupt law enforcement wherever and however they may try to do so.”
Douglas Williams, 69, of Norman, Oklahoma, pleaded guilty to a five-count indictment charging him with mail fraud and obstruction. Williams was indicted on Nov. 14, 2014, in the Western District of Oklahoma.
According to admissions made in connection with his plea, Williams, the owner and operator of “Polygraph.com,” marketed his training services to people appearing for polygraph examinations before federal, state and local law enforcement agencies and federal intelligence agencies, as well as people required to take polygraph examinations under the terms of their parole or probation.
Williams further admitted that he trained an individual posing as a federal law enforcement officer to lie and conceal involvement in criminal activity from an internal agency investigation. Williams also admitted to having trained a second individual posing as an applicant seeking federal employment to lie and conceal crimes in a pre-employment polygraph examination. Williams, who was paid for both training sessions, admitted to having instructed the individuals to deny having received his polygraph training.
The investigation is being investigated by U.S. Custom and Border Protection’s Office of Internal Affairs and the FBI’s Oklahoma City Field Office. The case is being prosecuted by Trial Attorneys Heidi Boutros Gesch and Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Ohio man convicted of heroin, cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Rayshawn L. Ball, 31, of Columbus, Ohio, was convicted in federal court on heroin and cocaine trafficking charges, United States Attorney William J. Ihlenfeld, II, announced today.
An investigation by the Marshall County Drug Task Force, a HIDTA-funded initiative, revealed that Ball engaged in heroin and cocaine trafficking in Ohio County, West Virginia throughout late 2014 and early 2015.
Ball pled guilty to one count of “Possession with Intent to Distribute Schedule I and Schedule II Controlled Substances.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. 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 Sarah Montoro prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Norwegian Shipping Company and Engineering Officers Charged with Environmental Crimes and Obstruction of JusticeRead the Press Release
A federal grand jury in Mobile, Alabama, has returned a seven-count indictment charging Det Stavangerske Dampskibsselskab AS (DSD Shipping) and four employees with violating the Act to Prevent Pollution from Ships (APPS), conspiracy, obstruction of justice and witness tampering, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Kenyen R. Brown for the Southern District of Alabama. DSD Shipping is a Norwegian-based shipping company that operates the oil tanker M/T Stavanger Blossom, a vessel engaged in the international transportation of crude oil. Also indicted were four engineering officers employed by DSD Shipping to work aboard the vessel, Daniel Paul Dancu, 51, of Romania, Bo Gao, 49, of China, Xiaobing Chen, 34, of China, and Xin Zhong, 28, of China.
According to the indictment, in 2014, DSD Shipping and its employees conspired to bypass pollution prevention equipment aboard the M/T Stavanger Blossom and to conceal the direct discharge of waste oil and oil-contaminated waste water from the vessel into the sea. The operation of marine vessels, like the M/T Stavanger Blossom, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard. Despite these requirements, DSD Shipping and its employees used a bypass pipe to circumvent pollution prevention equipment and discharge waste oil and oil-contaminated waste water directly into the sea. DSD Shipping and its employees also filled plastic bags with waste oil from a sludge tank aboard the vessel and then discarded the oil-filled plastic bags overboard into the sea.
The indictment further alleges that prior to an inspection by the U.S. Coast Guard, Chen ordered crewmembers to remove the bypass pipe, install a new pipe and repaint the piping to hide the illegal discharges. Chen and Zhong then ordered crewmembers to lie to the U.S. Coast Guard and instructed them to say that no plastic bags containing waste oil were discarded overboard, that all plastic bags remained aboard the vessel and to provide the incorrect quantity of bags generated from the cleaning of the sludge tank. To further hide the illegal discharges of waste oil and oil-contaminated waste water, DSD Shipping and its employees maintained a fictitious oil record book that failed to record the disposal, transfer, or overboard discharge of oil from the vessel. The oil record book also contained false entries stating that pollution prevention equipment had been used when it had not.
DSD Shipping and the engineering officers were charged with violating the APPS for failing to record overboard discharges in the vessel’s oil record book and garbage record book and with obstruction of justice and witness tampering for presenting false documents and deceiving the Coast Guard during an inspection. If convicted, DSD Shipping could be fined up to $500,000 per count, in addition to other possible penalties. Dancu, Gao, Chen and Zhong face a maximum penalty of 20 years in prison for the obstruction of justice charges. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until and unless proven guilty.
This case was investigated by the Sector Mobile of the U.S. Coast Guard, Investigative Services of the U.S. Coast Guard and the Criminal Investigation Division of the Environmental Protection Agency. Assistant U.S. Attorney Mike D. Anderson, with the U.S. Attorney's Office for the Southern District of Alabama and ECS Trial Attorney Shane N. Waller are prosecuting the case.
North Tonawanda Man Sentenced to Statutory Maximum for Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.– Attorney William J. Hochul, Jr. announced today that Thomas A. Sparks, 23, of North Tonawanda, NY, who was convicted of receipt of child pornography, was sentenced to 20 years in prison and 15 years supervised release by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in June 2013, the Federal Bureau of Investigation received a report that Sparks and a friend were downloading child pornography from the internet. Agents interviewed Sparks at his residence, who admitted that he had downloaded child pornography from the internet onto the flash drive. Sparks also stated that prior to FBI’s arrival, he smashed the flash drive and threw it in the garbage. Sparks did this after getting a phone call he received from a friend stating that the FBI was on the way to interview him.
The flash drive was recovered from the garbage and was repaired by the FBI in Quantico, Virgina. A forensic analysis of the flash drive revealed approximately 94 images of child pornography. During the investigation, agents also recovered an alleged contract Sparks drafted. The contract sought to have his girlfriend agree that, in the event they marry and have children, she would participate in and assist the defendant in committing acts of child exploitation. Additionally, as part of the plea agreement, Sparks admitted that he engaged in a pattern of activity involving the sexual abuse or exploitation of a minor.
The defendant’s conduct in the present case occurred approximately one month after being arrested and charged by the New York State Police with a separate child pornography investigation.
The sentencing is the result of an investigation by Agents of the Federal Bureau of Investigation, Detectives of the Cheektowaga Police Department, under the direction of Police Chief David Zack, and Investigators from the New York State Police, under the direction of Major Michael Cerretto. Additional assistance was also provided by the FBI Forensic Laboratory in Quantico, Virginia, and the Western New York Regional Computer Forensic Laboratory.
North Carolina Man Sentenced to Serve 243 Months in Prison for Attempting to Provide Material Support to a Designated Foreign Terrorist OrganizationRead the Press Release
A North Carolina man was sentenced to 243 months in federal prison, followed by a term of three years supervised release, for attempting to provide material support to a designated foreign terrorist organization and possession of firearm by a felon, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Ripley Rand of the Middle District of North Carolina and Special Agent in Charge John Strong of the FBI’s Charlotte, North Carolina, Division.
Donald Ray Morgan, 44, of Rowan County, North Carolina, was sentenced by U.S. District Court Judge Thomas D. Schroeder of the Middle District of North Carolina. On Oct. 30, 2014, Morgan pleaded guilty to attempting to provide material support to a designated foreign terrorist organization and possession of firearm by a felon.
According to court documents, Morgan knowingly attempted beginning in or about January 2014 until on or about Aug. 2, 2014, to provide support and resources, including his own services, to the designated foreign terrorist organization the Islamic State of Iraq and the Levant (ISIL). On at least one occasion, Morgan unsuccessfully attempted to travel from Lebanon to Syria to join ISIL. Morgan also frequently used social media and an interview with an international journalist to express his support for ISIL and violent terrorist activities.
“Morgan attempted to travel to Syria in order to provide material support to ISIL,” said Assistant Attorney General Carlin. “The sentence in this case demonstrates that we will continue to bring to justice those who engage in this conduct, and that protecting the nation against these threats remains one of our highest priorities.”
“We will continue to do everything we can to shine a light on the false allure of violent extremism and protect innocent people from terrorist activity, whether inside or outside the United States,” said U.S. Attorney Rand.
“Donald Ray Morgan proved himself to be a threat to national security,” said Special Agent in Charge Strong. “He traveled overseas with intentions to join the violent terrorist group, ISIL in Syria. One of the FBI’s highest priorities is to stop American citizens who support terrorist organizations and ensure they are held accountable for their actions.”
Court documents also reveal that Morgan possessed and later sold an assault rifle in January 2012, after having been convicted of a North Carolina state felony offense in 1997.
Morgan was initially arrested on Aug. 2, 2014, at John F. Kennedy International Airport in New York on a federal indictment for possession of a firearm by a felon.
Assistant Attorney General Carlin joined U.S. Attorney Rand in commending the work of the FBI’s Charlotte Division and the Greensboro, North Carolina, Resident Agency Joint Terrorism Task Force (Greensboro Police Department; Guilford County, North Carolina Sheriff’s Office; High Point, North Carolina Police Department; and the Winston-Salem, North Carolina, Police Department), the ATF, the U.S. Marshals Service and U.S. Customs and Border Protection in bringing Morgan to justice.
The prosecution is being handled by Assistant U.S. Attorney Graham Green of the Middle District of North Carolina, with the assistance of Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
New York Man Charged in Connection with Scranton Bank RobberyRead the Press Release
SCRANTON - The United States Attorney's Office for the Middle District of Pennsylvania announced that an indictment was returned yesterday afternoon by a federal grand jury in Scranton charging a New York man with armed bank robbery.
Jemel Laquan King, a/k/a “Melo,” age 37, a resident of New York, is charged with conspiring with others to commit the November 26, 2014 armed robbery of the NBT Bank on Keyser Avenue in Scranton. Approximately $91,000 was taken during the robbery. King is also charged with the use of a firearm during the commission of the crime.
Those previously charged with conspiring with King to commit the robbery include Jule Futrell, age 42, Endicott, New York, and Dorian Whitehead, age 29, Binghamton, New York.
The charges are the result of an investigation by the Federal Bureau of Investigation - Scranton and Binghamton offices. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties in this case include 25 years’ incarceration, plus an additional minimum of 7 years’ incarceration for the use of the firearm during the commission of a violent crime. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Orleans Woman Pleads Guilty to Stealing Educational FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KIM CASSELL, age 52, of Ruston, pled guilty today to stealing money from Open World Family Services, Inc. (“Open World”). Open World was a non-profit 501(c)(3) charitable corporation organized for the purpose of helping students in the greater New Orleans area grow academically.
According to court documents, from March 2010 until June 2012, CASSELL knowingly used more than $140,000 in federal grant money for her personal benefit, rather than for its intended educational purposes.
CASSELL faces a maximum term of imprisonment of ten years, three years of supervised release following any term of imprisonment, a $250,000 fine, and restitution to the United States Department of Education. U.S. DistrictJudge Ivan L.R. Lemelle set sentencing for August 19, 2015.
U.S. Attorney Polite praised the work of the U.S. Department of Education, the Federal Bureau of Investigation, and the Office of the Louisiana Legislative Auditor in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Kim Cassell Factual Basis.pdf (332.88 KB)
New London Man Sentenced for Production of Child PornographyRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on May 11, 2015, Shane M. Sells (age: 38) of New London, Wisconsin, was sentenced by Chief District Judge William C. Griesbach to 180 months imprisonment for production of child pornography in violation of Title 18 United States Code, Section 2251(a). Upon his release Sells will be on federal supervised release for the remainder of his life.
Sells engaged in sexually explicit conduct with minor children for the purpose of producing a video of that conduct, as well as knowingly possessing hundreds of thousands of DVDs each containing countless images of child pornography he had downloaded from the internet.
In pronouncing sentence, Judge Griesbach noted the horrendous nature of Sells’ crime, as well as the lifelong effect that sexual exploitation crimes have on victims. The court dismissed as “rationalization” Sells’ contention that he was unable to control his addiction to child pornography. Judge Griesbach expressed his hope that the 15 year prison sentence followed by a lifetime of supervision would deter others in the community from any involvement in the production or possession of child pornography.
The case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation and the Shawano County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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New Jersey Man Sentenced in Manhattan Federal Court to 10 Years in Prison for Multimillion-Dollar Investment FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CHARLES HUGGINS was sentenced in Manhattan federal court to 10 years in prison for perpetrating an $8 million investment fraud against dozens of victims across the United States. HUGGINS was convicted on October 10, 2014, following a two-week jury trial before U.S. District Court Judge Sidney H. Stein, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Charles Huggins took millions of dollars of his investors’ money under false pretenses and used it to pay for personal expenses, including luxuries. For his crimes, Huggins has been sentenced to 10 years in prison and ordered to relinquish his ill-gotten gains.”
According to the Complaint and other filings in Manhattan federal court, and the evidence presented at trial:
For nearly a decade, through September 2011, HUGGINS and others solicited more than $8 million from dozens of investors through various companies, including companies known as JYork Industries Inc. (“JYork”) and Urogo Inc. (“Urogo”). Huggins and his co-conspirators made false and misleading representations that, among other things, they would use the investors’ money exclusively to mine gold and diamonds from Sierra Leone and Liberia. HUGGINS falsely promised investors that their investments were risk-free and that they would receive high rates of return, which he represented were based upon the profits generated by the sale of the gold and diamonds in the United States.
HUGGINS and his co-conspirators misappropriated the investors’ funds and used those funds for their own purposes or to repay other investors. Contrary to the representations of HUGGINS and his co-conspirators, most of the investment funds were used to pay HUGGINS’s personal expenses and for purposes entirely unrelated to what was represented to investors. For example, hundreds of thousands of dollars in investor funds were diverted to Orpheus Inc., a record label owned by HUGGINS, and used to pay, among other expenses, HUGGINS’s $7,200 monthly apartment rent in the Sutton Place neighborhood of Manhattan, for upkeep of HUGGINS’s Mercedes Benz, restaurant bills, clothes from expensive boutiques, and personal credit card bills. HUGGINS personally received hundreds of thousands of dollars in cash and gave tens of thousands of dollars in cash to other members of his family and his co-conspirators. A portion of the funds was used to make payments to other investors, as in a classic Ponzi scheme.
Dozens of victims across the United States lost their money in the scheme. When certain investors complained that they had not received the investment return that they were promised, HUGGINS gave those investors small repayments from funds invested by others, or claimed that he converted their investment into restricted shares of Oraco Resources, a publicly traded company of which Huggins was a majority shareholder, that were essentially worthless.
In addition to his prison term, HUGGINS, 69, of Edgewater, New Jersey, was sentenced to three years of supervised release, and ordered to pay forfeiture and restitution of $2,383,255.26. HUGGINS was remanded following his conviction.
In sentencing HUGGINS, Judge Stein said, “This fraud was extensive, brazen, and sophisticated.” He also said that HUGGINS “lived a very luxurious lifestyle on the money of presumably hardworking individuals . . . people who were completely innocent.”
Two other defendants, Christopher Butchko and Anne Thomas, previously pled guilty for their roles in the fraudulent scheme, and await sentencing. Butchko pled guilty before Judge Stein on August 11, 2014, to conspiracy to commit wire fraud, and is scheduled to be sentenced on May 28, 2015 at 11:00 a.m. Thomas pled guilty before Judge Stein on August 18, 2014, to conspiracy to commit wire fraud, conspiracy to commit money laundering, structuring, and bank fraud, and is scheduled to be sentenced on June 24, 2015, at 3:30 p.m.
Mr. Bharara praised the work of the FBI in the investigation of this case. He added that the investigation is continuing.
The case is being handled by the General Crimes Unit of the United States Attorney's Office. Assistant United States Attorneys Edward A. Imperatore and Andrea L. Surratt are in charge of the prosecution.
Nampa Woman Pleads Guilty to Charge of Use of Interstate Commerce Facilities in the Commission of Murder-for-HireRead the Press Release
BOISE – Monique Christine Martinez, 32, of Nampa, Idaho, pleaded guilty yesterday to one count of use of interstate commerce facilities in the commission of murder-for-hire, U.S. Attorney Wendy J. Olson announced. Martinez was indicted by a federal grand jury on November 13, 2014.
According to court documents, Martinez contacted an individual by Facebook in California in order to hire someone to kill her husband. On October 17, 2014, Martinez met with an undercover agent, whom she believed was a hit man. Martinez advised the undercover agent that she wanted her husband dead and provided the agent with $350 in U.S. currency and promised additional payment later in the week. She provided the agent with a hand written note, which contained her husband’s name, the address of his employment and the address of his mother’s home, where he was recently living. Martinez showed the agent photographs of her husband on her smartphone, provided his work schedule, described his tattoos, and described the vehicle he drove. Martinez suggested that the best time to kill her husband was either as he got off work or when he was leaving his gym. Martinez was arrested in Nampa on October 22, 2014, at her residence in Nampa.
Using interstate commerce facilities in the commission of murder-for-hire is punishable by up to ten years in prison, a $250,000 fine, and three years of supervised release. Martinez will be sentenced on August 5, 2015, before Chief U.S. District Judge B. Lynn Winmill.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
Mother and son plead guilty in federal court to drug crimesRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that a mother and son pled guilty before United States District Judge Irene C. Berger in Beckley. Tricia Diane Arbaugh, 43, of Murfreesboro, Tennessee, pled guilty to traveling in interstate commerce to facilitate unlawful activity. She faces up to five years of imprisonment and a $250,000 fine. She admitted that she brought oxycodone and oxymorphone from Tennessee and distributed them in Lewisburg, West Virginia. Her son, Jeffrey Stephen McCallister, 24, also of Murfreesboro, pled guilty to two counts of using a communication facility to facilitate a felony. He admitted that he used a telephone on one occasion to set up a drug deal in which he sold oxymorphone to a confidential information working with authorities, and on another occasion to set up a transaction in which he sold oxymorphone and buprenorphine to an informant. He faces up to eight years in prison and a fine of $500,000. The sentencings are set for August 26, 2015.
These cases were investigated by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier Valley Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs 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. Assistant United States Attorney John File prosecuted the cases.
Monroe County Man Pleads Guilty to Producing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 45-year-old Tobyhanna man pleaded guilty today before U.S. Magistrate Judge Karoline Mehalchick in Scranton, to producing child pornography.
According to United States Attorney Peter Smith, the defendant, Robert Ferraro, admitted to using and persuading a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. Ferraro admitted to committing the crime between August 2013 and January 2015.
Ferraro was indicted by a federal grand jury in March 2015, as a result of an investigation by Homeland Security Investigations, the Pennsylvania State Police, and the Monroe County District Attorney’s Office.
Senior U.S. District Court Judge Richard P. Conaboy will impose sentence in the case. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative
launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute 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."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mission Woman Sentenced to 36 Months for Stabbing Man at Gas StationRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Assault with a Dangerous Weapon was sentenced on May 12, 2015, by U.S. District Judge Roberto A. Lange.
Misty Fawn Swalley, age 24, was sentenced to 36 months in custody, two years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Swalley was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on July 15, 2014. She pled guilty to Assault with a Dangerous Weapon on September 24, 2014.
On June 25, 2014, Swalley was at a gas station in Mission with some other people. The victim was also at the gas station, talking to an individual who was with Swalley. Swalley became upset at the conversation taking place, and circled behind the victim and stabbed him in the back with a steak knife.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim M. Maher prosecuted the case.
Swalley was immediately turned over to the custody of the U.S. Marshals Service.
Miami Dade College Student Sentenced to 2 Years in Prison for Stolen Identity Tax Refund Fraud Scheme Involving Student Financial Services AccountsRead the Press Release
A Miami Dade College student was sentenced to 24 months in prison, followed by two years of supervised release, and was ordered to pay restitution in the amount of $7,712, for his participation in a stolen identity tax refund fraud scheme involving his student financial services account.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Erving Jaques Etienne, 21, of Hollywood, previously pled guilty to one count of theft of government property, in violation of Title 18, United States Code, Sections 641 and 2.
According to court documents, Etienne received nine fraudulently obtained U.S. Department of Treasury tax refunds into his personal Higher One, Inc. (HOI) account. HOI provided financial services to colleges and universities throughout the United States, including Miami Dade College in the Southern District of Florida.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Pleads Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national pleaded guilty in federal court today, as his jury trial was scheduled to begin, to his role in a conspiracy to distribute large amounts of methamphetamine in southwest Missouri.
Jaime Gonzalez-Alvarado, 34, a citizen of Mexico residing in South Baja, Calif., pleaded guilty before U.S. District Judge M. Douglas Harpool to participating in a conspiracy to distribute methamphetamine in Barry County, Mo., from March 1, 2012, to Oct. 11, 2013. He also pleaded guilty to possessing methamphetamine with the intent to distribute.
Co-defendants Julio Vincente Mendoza, 33, a Mexican citizen who is a resident alien residing in Monett, Mo., Camilo Acosta, Jr., 22, of Imperial Beach, Calif., and Ernie Soto, 22, and Armando Arizpe, 24, both of Los Angeles, Calif., have pleaded guilty to their roles in the drug-trafficking conspiracy.
By pleading guilty today, Gonzalez-Alvarado admitted that he directed the delivery and then the distribution of methamphetamine, which was being delivered from California to Mendoza’s residence in Monett. This methamphetamine was then distributed by Gonzalez-Alvarado and others in the Monett area and throughout southwest Missouri.
On Oct. 11, 2013, law enforcement officers in Oklahoma seized one of these shipments of methamphetamine that was enroute to Mendoza’s residence in Monett. Officers seized 15 tape-wrapped bundles of methamphetamine weighing 14.61 kilograms.
On the same day, Missouri law enforcement officers conducted a controlled delivery of a portion of the methamphetamine to Mendoza’s residence, where they arrested Gonzalez-Alvarado and the other co-conspirators. Officers executed a search warrant and seized $57,660 found in a locked safe, $3,000 found in a downstairs bedroom, a Smith and Wesson 10mm semi-automatic handgun with 50 rounds of ammunition, packaging material consistent with the packaging of methamphetamine, approximately 3.5 grams of methamphetamine, a glass pipe commonly used to ingest methamphetamine and a drug ledger notebook which contained names, numbers, and currency amounts.
Under federal statutes, Gonzalez-Alvarado is subject to a mandatory minimum sentence of 10 years in federal prison without parole on each of the two counts. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert and Special Assistant U.S. Attorney Nhan Nguyen. It was investigated by the Drug Enforcement Administration; the Missouri State Highway Patrol; the Canada County, Okla., Sheriff’s Department; the Barry County, Mo., Sheriff’s Department; and the Barry County, Mo., Prosecuting Attorney’s Office.
Meskwaki Man Sentenced to Twenty-Five Years’ Imprisonment for Murder Committed on the Meskwaki Nation SettlementRead the Press Release
A man who committed murder on the Meskwaki Nation Settlement was sentenced today to twenty-five years in federal prison.
Jonathan Youngbear, 21, from the Meskwaki Nation Settlement, Iowa, received the prison term after a January 28, 2015, guilty plea to one count of second degree murder in “Indian Country.”
In a plea agreement, Youngbear admitted that he stabbed Severn Jefferson twice in the neck and chest with a knife. Youngbear further admitted that the victim bled to death as a result of the stab wounds. At the time he stabbed the victim, Youngbear was under the influence of alcohol and also had methamphetamine in his system.
Youngbear was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Youngbear was sentenced to twenty-five years’ imprisonment. The Court imposed a special assessment of $100 and he was ordered to make $3,026.20 in restitution to the Iowa Crime Victim compensation Program. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Youngbear is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Peter Deegan and Tony Morfitt and investigated by the Meskwaki Nation Tribal Police Department, the Tama County Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-00046.
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Maquoketa Man Pleads Guilty to Illegally Trafficking in Black Rhino HornsRead the Press Release
A man who illegally bought and transported black rhino horns from Oregon to Iowa pled guilty today in federal court in Cedar Rapids.
James Hess, 39, from Maquoketa, Iowa, was convicted of one count of violating the Lacey Act, which prohibits interstate trade in certain wildlife, including wildlife determined to be endangered under the Endangered Species Act. Black rhinos are endangered and it is illegal to traffic in their horns across state lines.
In a plea agreement, Hess, who is a taxidermist, admitted that he contacted an individual in Oregon who was trying to sell a pair of black rhino horns online. Hess reached an agreement to buy the rhino horns and told the seller that he had arranged to further sell the horns to a different person in Oregon. Hess further admitted that when meeting the seller in Oregon he gave the seller an Oregon driver’s license purporting to be for the buyer for the horns. Instead of reselling the horns in Oregon, Hess shipped the horns back to Maquoketa and then gave the horns to someone else in Iowa. Hess also admitted to receiving half of the profits this person expected to receive from a further sale of the horns.
Rhinoceros are herbivores of prehistoric origin and among the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by 178 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to 668 in 2012.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hess was released on conditions set by the Court pending sentencing. Hess faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt. The case was investigated as a part of “Operation Crash,” a continuing nationwide investigation by the Department of the Interior’s Fish and Wildlife Service to investigate and prosecute those involved in the black market trade of endangered rhino horns.
Court file information at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-41.
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Man Sentenced to Prison on Firearm Possession ConvictionsRead the Press Release
St. Thomas, USVI – On Wednesday, May 13, 2015, District Court Judge Curtis V. Gomez sentenced Joseph Roberts, Jr., 27, to a total of 39 months in prison, 32 for possession of a firearm by a convicted felon and seven for possession of a firearm within a school zone, United States Attorney Ronald W. Sharpe announced. Judge Gomez also sentenced Roberts to serve three years of supervised release.
Roberts was arrested on October 16, 2014 by officers of the Virgin Islands Police Department after he was found in possession of a firearm in the area of the Julius E. Sprauve Elementary School on St. John. Court records show that in August 2010, Roberts was convicted of unauthorized possession of a firearm, possession of a controlled substance with the intent to distribute, and reckless endangerment. On January 26, 2015, he pleaded guilty to possession of a firearm by a convicted felon and possession of a firearm within a school zone.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Lowell Defense Attorney Pleads Guilty to Trading on Insider InformationRead the Press Release
BOSTON – A Lowell defense attorney pleaded guilty yesterday in U.S. District Court in Boston in connection with his role in a conspiracy to use inside information about business activities of American Superconductor Corporation (AMSC) to profit from trading AMSC stock.
Douglas Parigian, 56, pleaded guilty to a superseding information charging him with conspiracy and securities fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Aug. 17, 2015.
Starting in or about July 2009, a friend of Parigian’s, Eric McPhail, began giving Parigian and others inside information about AMSC’s business activities and upcoming earnings announcements. McPhail obtained this information during golf matches, dinners, and other social outings with a close friend who was a senior executive at AMSC. The executive trusted McPhail to keep the information to himself and was unaware that McPhail was instead tipping his own friends. Between July 2009 and April 2011, Parigian, who knew the information was confidential and that it was improper for McPhail to disclose it, nonetheless repeatedly traded on it, making over $200,000 in illicit gains and avoided losses.
The securities fraud charge provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $5 million. The conspiracy charge provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 on each count. 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 Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case. The case is being prosecuted by Assistant U.S. Attorneys Andrew E. Lelling of Ortiz’s Economic Crimes Unit and Seth B. Kosto of Ortiz’s Cybercrime Unit.
Lebanon Sex Offender Indicted for Failing to RegisterRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lebanon, Mo., woman who was originally convicted of her role in a sex trafficking conspiracy was indicted by a federal grand jury today for failing to register as a sex offender.
Marilyn Bagley, 49, of Lebanon, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Bagley remains in federal custody.
Today’s indictment alleges that Bagley knowingly failed to register or update her registration between Feb. 14, 2015, and March 18, 2015.
Bagley pleaded guilty on Dec. 6, 2012, to her role in a conspiracy to commit sex trafficking in which the victim was subjected to sadistic acts of torture over a six-year time period. Bagley was sentenced to a term of probation and is required to register as a sex offender.
On April 29, 2015, the court found that Bagley violated the terms of her probation. Bagley’s probation was revoked and she was sentenced to four years in federal prison without parole.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Marshals Service.
Leader of Drug Trafficking Organization Admits Conspiring to Sell Kilograms of Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A leader of a large-scale drug trafficking organization today admitted conspiring to distribute heroin in Ocean and Monmouth counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” of Asbury Park, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with conspiring to distribute 100 grams or more of heroin.
In March 2014, 19 other alleged members of the drug trafficking organization of which Young was a leader were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Young and Robert Britt, a/k/a “True.” Of those 19 individuals, 14 have pleaded guilty.
According to documents filed in this case and statements made in court:
Between February 2013 and March 2014, Young conspired with others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO. Young was a leader of the organization and was responsible for, among other things, supplying heroin to various sub-dealers who distributed the heroin to others. To carry out Britt-Young DTO’s drug trafficking business, Young maintained several stash house locations that he and his conspirators used to package, store and sell heroin, including a recording studio in Toms River and two apartments in Neptune, New Jersey. Young was responsible for distributing between one and three kilograms of heroin during the conspiracy.
The narcotics conspiracy charge to which Young pleaded carries a maximum penalty of 40 years in prison and a $5 million fine. Sentencing is scheduled for Aug. 19, 2015.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel; officers of the Brick Township Police Department, under the direction of Chief Nils R. Bergquist: and officers of the Toms River Police Department, under the direction of Chief Mitchell Little, with the investigation. He additionally credited special agents of the Bureau of Alcohol Tobacco Firearms and Explosives, under the direction of Special Agent in Charge George P. Belsky; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; officers of the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher J. Gramiccioni; and officers of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato. He also thanked the Monmouth County Sheriff’s Office and the Neptune Township, Asbury Park, Marlboro, Long Branch and Freehold police departments for their roles in the case.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Stacy A. Biancamano Esq., West Orange, New Jersey
young_rufus_information.pdf (712.75 KB)
Lacy-Lakeview Bank Robber Sentenced to Federal PrisonRead the Press Release
In Waco today, 20-year-old Leticia Andrea Newton-Shelton was sentenced to 51 months in federal prison for bank robbery announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Walter S. Smith, Jr., ordered that Newton-Shelton pay $1,370 restitution to Extraco Bank and a $1,000 fine. Judge Smith also ordered that Newton-Shelton be placed on supervised release for five years after completing her prison term.
On March 19, 2015, Newton Shelton pleaded guilty to one count of bank robbery. By pleading guilty, she admitted that on December 29, 2014, she entered the Extraco Bank located on North Loop 340 in Lacy-Lakeview and presented a teller with a demand note which stated she was armed. Newton Shelton further admitted she was in possession of a Ruger pistol during the bank robbery.
On December 30, 2014, Hillsboro Police arrested Newton-Shelton after she was identified as a suspect in the Extraco Bank robbery.
This investigation was conducted by the Federal Bureau of Investigation (FBI) together with the Lacy-Lakeview Police Department and the Hillsboro Police Department. Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
Justice Department Settles Claims Against Leflore County, Mississippi, to Address Security and Facility Conditions at the Leflore County Juvenile Detention CenterRead the Press Release
Today, the Justice Department announced that it has reached an agreement with Leflore County, Mississippi, to improve security and facility conditions at the Leflore County Juvenile Detention Center in Greenwood, Mississippi. Leflore County committed to numerous reforms to protect children in its care from abuse and self-harm, to improve its security and emergency preparedness and to improve its medical and mental health care. Leflore County also pledged to end the use of solitary confinement as a form of discipline and to limit solitary confinement to a cool-down period not to exceed one hour.
The department investigated conditions at Leflore County Juvenile Detention Center and in March 2011 found deficiencies in numerous areas, including the use of force and restraints, abuse investigations, suicide prevention and use of solitary confinement.
The agreement was filed today in the federal district court of the Northern District of Mississippi. Upon court approval, it will require significant reforms that will enhance safety and security for children held at the detention center. The reforms concern intake and classification, use of force and restraints, behavior management, solitary confinement, suicide prevention and mental health care, medical care, due process, incident reporting, sanitation, fire safety and security staffing. In addition, the agreement contains provisions governing data gathering, quality assurance and policy revision. The agreement requires Leflore County to obtain expert assistance to meet its reform obligations. The agreement will terminate once Leflore County has achieved 12 consecutive months of substantial compliance with all of the agreement’s provisions.
“This agreement will help protect children who are in custody and ensure that they are detained under conditions that are secure, safe and appropriate,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Leflore County should be credited for embracing reform, particularly in the use of solitary confinement.”
“Leflore County and the detention center administrators are to be commended for their commitment to reforming Leflore County’s juvenile detention facility and protecting children in custody,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “The agreement will put in place reforms that will keep at-risk children safe as they prepare to return to their communities.”
The department also found violations of the Individuals with Disabilities Education Act (IDEA) in the detention center school. Because the state of Mississippi took control of the Leflore County schools in 2013, the county no longer has a role in providing education services. As a result, the agreement between the United States and Leflore does not resolve the United States’ findings of violations of children’s educational rights at the detention center. The department is working separately with the state of Mississippi to resolve the department’s concerns about education.
The Violent Crime Control and Law Enforcement Act of 1994 authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youth in juvenile justice institutions. Please visit the division’s website to learn more about this act and other laws the Civil Rights Division enforces.
This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Justice Department Files Federal Lawsuit Against Park City Business for ViolatingRead the Press Release
SALT LAKE CITY – The Justice Department’s Civil Rights Division and U.S Attorney Carlie Christensen of the District of Utah announced today the filing of a complaint in U.S. District Court in Salt Lake City against Veteran’s Trading Company (VTC), a business with headquarters in Park City, Utah.
The complaint alleges the business violated the employment rights of Naval Reserve Captain Paul M. Costello under the Uniformed Services Employment and Reemployment Rights Act (USERRA). Costello is a Navy veteran with a disability who has served his country as an F-18 fighter pilot. He has served as a member of the United States Naval Reserve since 1997.
According to the complaint, filed by the United States on Costello’s behalf, Costello’s military service was a motivating factor in VTC’s decisions to deny his request for re-employment and, ultimately, to terminate his employment. The United States claims that both actions by VTC violated Costello’s USERRA rights.
“Members of our National Guard and Reserves make many sacrifices, including spending months or years away from their jobs and families,” said U.S. Attorney Christensen. “When our service members are deployed in the service of our country, they are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations. We are filing suit today, on behalf of Captain Costello, a member of the U.S. Naval Reserve, to ensure that he does not lose his rights while he was protecting ours.”
The complaint alleges that in July 2013, VTC fired Costello from his job as company President due to his military service and subsequently denied Costello’s application for reemployment following his active military duty in September 2013. On April 30, 2015, VTC pre-emptively filed its own suit against Costello in Utah state court claiming that he was inappropriately remunerated for his service to the company while he was on military leave; despite the fact that while he was on military he took personal leave in order to preside over company meetings. In addition to filing its federal complaint, the United States removed the employer’s action from state court to federal court.
“The brave men and women who serve in our Armed Forces should never have to fear losing their job while they’re deployed overseas,” said Acting Associate Attorney General Stuart F. Delery. “That’s why the Department of Justice is committed to protecting the employment rights of service members and we will continue to devote time and resources to hold bad actors accountable.”
“Captain Costello served our nation honorably, and USERRA guarantees his right to re-employment upon his return from service,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Through the department’s newly created Service Members and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our Armed Forces.”
USERRA protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations, and proved that service members cannot be discriminated against because of their military obligations.
The lawsuit filed by the United States seeks damages equal to the amount of Costello’s lost wages and other benefits caused by VTC’s failure to comply with USERRA and a dismissal of VTC’s complaint. It also seeks an order requiring VTC to return Costello’s ownership and distribution shares and pay him all amounts that were distributed to shareholders between June 9, 2013, and the date of judgment. The lawsuit seeks an order requiring VTC to pay for all litigation fees related to the court action.
Costello initially filed a complaint with the Labor Department’s Veterans’ Employment and Training Service, which investigated this matter and, after resolution failed, referred it to the Justice Department’s Civil Rights Division, Employment Litigation Section. This lawsuit followed as a collaborative initiative between the Civil Rights Division and the U.S. Attorney’s Office for the District of Utah. The Department of Justice has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s Web sites at http://www.usdoj.gov/crt/emp and http://www.servicemembers.gov, as well as on the Labor Department’s website at http://www.dol.gov/vets/programs/userra/main.htm.
Jury Convicts KC Man, Woman of Heroin Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man and woman have been convicted by a federal trial jury of their roles in a conspiracy to distribute heroin and of illegally possessing firearms and ammunition.
Robin M. Sims, also known as Robin Hood, 51, and Amy E. Jones, 52, both of Kansas City, were found guilty on Tuesday, May 12, 2015, of participating in a conspiracy to distribute heroin between June 2012 and June 2013 and of aiding and abetting one another to distribute heroin. In addition, Sims was convicted of five counts of distributing heroin and one count of being a felon in possession of a firearm and ammunition. Jones was also convicted of being an unlawful drug user in possession of a firearm.
Evidence introduced during the trial included a series of undercover and controlled purchases of heroin from Sims, often utilizing a confidential informant. Police officers conducted three searches at two separate residences shared by Sims and Jones and seized heroin and firearms.
On Aug. 30, 2012, during an investigation, Kansas City police officers searched a residence shared by Sims and Jones and found a Colt .32-caliber pistol under the mattress of a bed.
On Nov. 12, 2012, officers executed a search warrant at the residence shared by Sims and Jones and discovered heroin wrapped in a lottery ticket and a digital scale in the kitchen.
On June 20, 2013, officers executed a search warrant at the residence shared by Sims and Jones. When officers entered the residence, Sims placed a plastic baggie that contained what appeared to be heroin in his mouth and swallowed it. Officers discovered a loaded Davis Industries .22-caliber revolver under a bed.
Under federal statutes, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sims has a prior felony conviction for second degree murder, two prior felony convictions for drug trafficking, two prior felony convictions for possessing a controlled substance and a prior felony conviction for distributing, delivering and producing a controlled substance.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour before returning the guilty verdicts to U.S. District Judge Dean Whipple, ending a trial that began Monday, May 11, 2015.
Under federal statutes, Sims is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. Jones is subject to a sentence of up to 50 years in federal prison without parole. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Judge Sentences Pittsburgh Felon to 8 Years in Prison for Illegally Possessing PistolRead the Press Release
PITTSBURGH - A local man pleaded guilty and was sentenced in federal court to eight years imprisonment on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Mark A. Brazil, 49, of Pittsburgh, Pa., pleaded guilty to one count and was sentenced before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that Brazil admitted in recorded conversations that he put firearms in his wife’s name because he was a convicted felon who could not lawfully possess firearms. Brazil specifically mentioned a .40 caliber Springfield pistol as a firearm he favored and described the unique way he loaded the magazine. During the execution of a search warrant at Brazil’s home on Oct. 16, 2013, a loaded Springdale .40 caliber pistol was found in Brazil’s bed in the master bedroom. The gun was loaded in the manner Brazil had earlier described.
Judge Diamond noted Brazil’s extensive criminal history in imposing sentence.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County Police, with the assistance of the Pittsburgh Bureau of Police, conducted the investigation that led to the prosecution of Brazil.
Indiana Man Sentenced to 240 Years Imprisonment for Production, Possession and Distribution of Child PornographyRead the Press Release
Daniel T. Eckstrom, 32, of Lake Station, Indiana, was sentenced to 240 years of imprisonment followed by lifetime supervised release for his nine criminal convictions for production, distribution and possession of child pornography, announced U.S. Attorney David Capp for the Northern District of Indiana.
According to documents filed in the case, on Jan. 17, 2014, Eckstrom pleaded guilty to seven charges of producing child pornography, one charge of distributing child pornography and one charge of possessing child pornography.
The production of child pornography charges were based on Eckstrom’s capturing of thousands of images and hundreds of videos depicting three minor female victims under the age of 12 being caused to engage in sexually explicit conduct. One victim was sexually abused by Eckstrom over a period of five years. The court found that Eckstrom had used force to cause her to engage in sexual acts and also used threats of violence. Based on the evidence of child pornography production presented at sentencing, the court concluded that Eckstrom was a repeat and dangerous sex offender and sentenced him to consecutive terms of 30 years on each of the seven production of child pornography charges.
On the distribution of child pornography charge, the evidence presented at sentencing established that Eckstrom distributed depictions of two of his victims to others. As a result, over 600 depictions of one victim have been found in seven investigations in six different U.S. states and over 10,000 depictions of another have been found in 77 investigations in 29 different states. Eckstrom received a 20 year sentence for his distribution of child pornography charge and another 10 years for possession of child pornography, both consecutive to each other and consecutive to the production charges.
The investigation in this case began when Homeland Security Investigations (HSI) out of Salt Lake City, Utah, located an individual suspected of producing child pornography in Sandy, Utah and distributing the material via an email account. Upon further investigation, that target was found to be trading depictions, including depictions produced by Eckstrom, with another target out of Syracuse, New York. When the material was sent to the National Center for Missing and Exploited Children, an investigator with that agency helped identify Eckstrom. Once Eckstrom was located in northwest Indiana, local agents with HSI obtained a federal warrant to search his residence.
This case was a culmination of the great work that can be accomplished from outstanding coordination between various law enforcement agencies around the country to identify and bring serial child sexual abusers to justice.
This case was investigated by the U.S. Department of Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Jill R. Koster.
Greenwich Woman Admits Embezzling $176K from EmployerRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHELLE CRAWFORD, 33, of Greenwich, waived her right to indictment and pleaded guilty today in Hartford federal court to one count of wire fraud stemming from her embezzlement of more than $176,000 from her employer.
According to court documents and statements made in court, CRAWFORD worked as the office manager for the New England Oil Company (“NEOC”) located in Greenwich. In her capacity as the office manager, CRAWFORD had access to the bank accounts, credit cards and payment system of NEOC. Between May 2011 and May 2014, CRAWFORD embezzled approximately $176,735 from NEOC by making unauthorized withdrawals and by using company funds to pay personal expenses while disguising them in company records as legitimate NEOC expenses.
CRAWFORD is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 29, 2015, at which time she faces a maximum term of imprisonment of 20 years.
This investigation was conducted by the U.S. Secret Service, the Greenwich Police Department and the Connecticut Financial Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Glen Hazel Woman Charged with Using $70K in Benefits Intended to Support Her ChildrenRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of theft of government property and false statements to retain Supplemental Security Income Benefits, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on May 12, named Taisha Teresa Elmore, 35.
According to indictment, Elmore converted to her own use more than $70,000 of Supplemental Security Income Benefits (SSI) that were intended for her minor children. She also made false statements to the Social Security Administration by indicating that certain minor children were living with her when they were not and that she was using SSI benefits for their care and support when she was not.
The law provides for a maximum total sentence of up to 10 years in prison as to Count One and up to five years in prison as to Counts Two and Three, as well as a fine of up to $250,000 on each count, or both imprisonment and a fine. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Social Security Administration, Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former federal bureau of prisons employee sentenced in federal court for sex crimeRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that United States District Judge Irene C. Berger sentenced a former Federal Bureau of Prisons employee to 14 months in federal prison for abusive sexual contact involving a ward. Richard Canterbury, 50, of Lewisburg, West Virginia pled guilty in January of 2015, admitting that in April of 2014, he touched the breasts of a female inmate at the Federal Prison Camp at Alderson while he was overseeing her work. Judge Berger also ordered that following his release from prison Canterbury will be on supervised release for five years and he must register as a sex offender.
This case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Assistant United States Attorney John File handled the prosecution.
Former Outlaw Motorcycle Gang Member Indicted in Federal Court - Faces Life in PrisonRead the Press Release
United States Attorney James L. Santelle, announced that on May 12, 2015, a grand jury sitting in the Eastern District of Wisconsin returned a second superseding indictment, charging Randy M. Yager, aka “Mad,” 59, originally from Crown Point, Indiana, with Racketeering and Racketeering Conspiracy, in violation of Title 18, United States Code, Section 1962(c) and (d).
The indictment alleges that as a member and regional boss of the Outlaws Motorcycle Club during the 1990s, Yager participated in acts of murder and arson. The eight underlying racketeering acts charge offenses that include three homicides and the use of explosives, all directed at members of rival motorcycle gangs as part of the Outlaws’ efforts to exert and maintain territorial control.
Yager was originally charged with sixteen co-defendants in an indictment that was unsealed on June 10, 1997. At that time, Yager became a fugitive. He remained a fugitive, and one of the United States Marshal’s “most wanted,” until October 2014 when he was arrested in Baja, Mexico, where he was living under an assumed name. The cases of Yager’s co-defendants have long been resolved. If convicted, Yager faces up to life in prison.
The case was investigated by a federal task force headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant United States Attorneys Carol L. Kraft, Scott J. Campbell and Laura S. Kwaterski.
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Former Orleans Parish School Board Member Ira Thomas Pleads Guilty to Conspiracy to Commit Federal Bribery and Honest Services Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that IRA THOMAS, 56, of New Orleans and former member of the Orleans Parish School Board (“OPSB”), pled guilty today to charges of conspiracy to commit bribery and honest services wire fraud.
THOMAS admitted that beginning in September 2013 and continuing until January 2015, he and others participated in a conspiracy to commit bribery and honest services wire fraud. THOMAS admitted that, in his role as an Orleans Parish School Board Member, he engaged in a scheme to defraud Orleans Parish and its citizens of his honest services through bribery and a kickback scheme, whereby THOMAS used his public office and official capacity to provide favorable treatment, including attempting to facilitate the awarding of a contract, that was designed to benefit the business and financial interest of an individual who provided him with a bribe and kickback in the form of cash payment disguised as a campaign contribution.
According to court documents, in September 2013 a cooperating witness (“CW”) was approached by an OPSB employee, who offered the CW a janitorial services contract that would soon be up for bid by the OPSB in exchange for a monetary payoff. During the fall of 2013, the CW, THOMAS, the OPSB employee, and at times another private citizen, met to discuss this contract. These conversations were recorded by the CW with the assistance of the FBI. Ultimately, it was decided that the CW would pay $5,000 to THOMAS in the form of a “campaign contribution” in exchange for THOMAS’ and the OPSB employee’s assistance regarding the janitorial services contract. In December 2013, the CW delivered $5,000 in cash to the private citizen acting as a conduit for THOMAS, which was video recorded. This money was then delivered to THOMAS. During the fall of 2014, THOMAS and the OPSB employee discussed over recorded telephone conversations how to alter the bid process so that the CW would be given an improper advantage in bidding for the janitorial services contract, which was valued over $5,000.
THOMAS faces statutory penalties of up to five years in prison, a $250,000 fine and three years of supervised release. U.S. District Judge Susie Morgan set sentencing on August 12, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter and thanked the Metropolitan Crime Commission for their assistance. Assistant U.S. Attorney Sean Toomey is in charge of the prosecution.
Ira Thomas Factual Basis.pdf (14.86 KB)
Former Gloversville Husband and Wife Sentenced for Social Security FraudRead the Press Release
ALBANY, NEW YORK – Scott J. Bornt, age 53, and his wife Geri Mondlin-Bornt, age 50, of Hillsborough, NJ, formerly of Gloversville, NY, each were sentenced yesterday in Albany for Social Security Fraud before Senior United States District Court Judge Thomas J. McAvoy, announced United States Attorney Richard S. Hartunian and Special Agent in Charge Edward J. Ryan of the Social Security Administration, Office of Inspector General, Office of Investigations, New York Field Division.
Scott J. Bornt was sentenced to 18 months in prison and three years supervised release. The court ordered that he pay $314,650 restitution to the United States Social Security Administration.
Geri Mondlin-Bornt was sentenced to three years of probation. The court ordered that she pay $88,120 restitution to the United States Social Security Administration.
As part of their respective guilty pleas, Bornt and Mondlin-Bornt admitted that they each made false statements to Social Security Administration personnel to obtain Social Security Disability Insurance benefits payments to which they were not entitled. The amounts were $314, 650, over six years for Bornt and $88,120, over seven years for Mondlin-Bornt.
Bornt and Mondlin-Bornt admitted that they jointly owned and operated a business, GMB Trucking, and concealed the extent of their involvement with the business from the Social Security Administration. Bornt concealed income and the fact that he was the sole driver for the trucking business, and Mondlin-Bornt underreported and concealed income she received from the business.
The case was investigated by the Social Security Administration, Office of Inspector General, with the assistance of the United States Secret Service. The case was prosecuted by Assistant United States Attorney Edward P. Grogan.
Former Buffalo Man Indicted for Tax Evasion, Failure to File ReturnsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Buffalo, Mo., man has been indicted by a federal grand jury for tax evasion and for failing to file tax returns.
Ronald Allen Downey, 56, formerly of Buffalo, was charged in a four-count indictment returned under seal by a federal grand jury in Springfield on April 2, 2015. That indictment has been unsealed and made public following Downey’s arrest in Hawaii and initial court appearance today in the U.S. District Court in Springfield. Downey was released on bond.
Downey worked as an alternative healer and teacher in his company, Downey Life Transformation Center.
Today’s indictment alleges that in 2008 Downey received $818,386 in gross income, of which at least $79,343 constituted taxable income. Downey did not file an income tax return, the indictment says, but attempted to evade paying taxes by using bank accounts that were opened with false Social Security numbers and by fraudulently using the credit card merchant account of another person to process commercial transactions.
The federal indictment also charges Downey with three counts of failing to file a federal income tax return. According to the indictment, Downey received gross income of $254,743 in 2009, $101,206 in 2010 and $69,423 in 2011. Downey allegedly failed to file an income tax return for each of those years.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Timothy A. Garrison. It was investigated by IRS-Criminal Investigation.
FnD Gang Member Pleads Guilty to Racketeering and Narcotics ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JEREMIAH JACKSON, a/k/a “Rocky,” age 24, of New Orleans, pled guilty today in the racketeering conspiracy case involving the Frenchmen/Derbingy gang, or “FnD.”
According to court documents, JACKSON pled guilty to four counts of the Third Superseding Indictment, including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, conspiracy to possess firearms in furtherance of a drug trafficking conspiracy, and assault with a dangerous weapon in furtherance of a racketeering enterprise.
JACKSON faces a maximum life imprisonment for the RICO violation, a mandatory minimum of 20 years to life imprisonment on the drug conspiracy charge, and a maximum of 20 years as to each charge of conspiracy to possess firearms in furtherance of a drug trafficking conspiracy and assault with a dangerous weapon in furtherance of a drug trafficking conspiracy.
According to court documents, FnD constituted a racketeering “enterprise” under federal law. JACKSON, as a member of this enterprise, conspired to commit numerous overt acts in furtherance of this enterprise. These acts included the distribution of illegal narcotics, such as heroin and crack cocaine, as well as crimes of violence, including assault with firearms. JACKSON admitted to the shooting of an individual who was sitting in his car on April 16, 2011, on the 2000 block of Prieur Street in New Orleans. The victim was shot in the stomach by JACKSON because he resembled a rival drug dealer. The New Orleans Police Department Crime Lab matched casings found at the scene to a gun that was found in JACKSON’s possession on July 19, 2011.
Three other defendants previously pled guilty in the course of this prosecution: CRYSTAL SCOTT, RICHMOND SMITH, and GRALEN BENSON. The grand jury subsequently returned a superseding indictment charging the remaining defendants with RICO conspiracy, among other charges. JACKSON is the first defendant to have pled guilty to RICO conspiracy.
Five defendants remain in this case: TRAVIS SCOTT, STANLEY SCOTT, SHAWN SCOTT, AKEIN SCOTT, and BRIAN BENSON. U.S. District Judge Ivan L.R. Lemelle scheduled those defendants for trial on July 13, 2015.
The indictment is a product of an ongoing investigation into the violent acts in furtherance of drug trafficking by the FnD gang. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Orleans Parish District Attorney’s Office, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and officers of the New Orleans Police Department. Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.
Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office, are in charge of the prosecution.
Jeremiah Jackson Factual Basis.pdf (4.47 MB)
Five Sex Traffickers Sentenced for Pimping 14-Year-Old GirlsRead the Press Release
ATLANTA – Fabian Terran Murray, a/k/a “Shooter,”--one of five men charged in two related cases involving the pimping of three 14-year-old girls and a 16-year-old girl at hotels in Atlanta, Georgia, and elsewhere-- was sentenced to 17 years, nine months in federal prison. This sentencing brings to a close the prosecution of the two sex-trafficking conspiracies.
Defendants Joshua Thomas Hill, also known as “Cash,” Clinton Saintvil, Richard Douglas King, also known as “Ready,” and Jonathan Branch, were previously sentenced on July 10, 2014, July 14, 2014, and August 1, 2014.
“These men pimped girls as young as 14 years old, who they knew to be runaways and especially vulnerable,” said Acting U.S. Attorney John Horn. “The coordinated efforts of federal and local law enforcement officers, together with the courage of these young trafficking survivors, rescued four teenage girls from the horrific victimization cycle and restored them to safety.”
"The sentencing of Fabian “Shooter” Murray continues to mark the successful collaboration of Atlanta area law enforcement in aggressively addressing the juvenile sex industry as well as the trafficking of these juveniles in support of that industry,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “The FBI led Metro Atlanta Child Exploitation (MATCH) Task Force, consisting of experienced law enforcement officers and agents working together across many jurisdictional boundaries, credits its many successful investigations and resulting prosecutions through not only the sharing of information but by also combining resources and assets. The defendants in these cases represent not only the successes of this task force but also the need for it.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: The defendants were indicted in two related cases on charges of conspiracy to commit and commission of sex trafficking of a minor. The investigation that led to these indictments is described as follows:
U.S. v. Hill, Murray, and Saintvil
On February 19, 2012, Hill, Murray, and Saintvil met two 14-year-old girls, A.C. and O.M., at a park in Marietta, Georgia. The girls told the men that they were runaways. Hill, Murray, and Saintvil drove the girls to a nearby convenience store where they purchased condoms. When Hill and Murray entered the store, Saintvil told the girls that they would be working for the defendants as prostitutes. After leaving the convenience store, the men drove the girls to an extended stay hotel. Hill and Murray caused A.C. and O.M. to commit commercial sex acts at various hotels in the Atlanta metro area, soliciting clients for the girls on the website “Backpage Atlanta.” Saintvil drove the girls to the various locations where they engaged in commercial sex acts. On one occasion, Hill and Saintvil drove A.C. and O.M. to meet a male client at a high-rise condominium in Midtown Atlanta. Cobb County, Georgia, Police Department officers discovered the girls on February 22, 2012, during a search of a hotel room.
During this same time, Hill and Saintvil also caused a third 14-year-old girl, M.Q., to engage in prostitution. Sometime in or about February 2012, Hill engaged in sex acts with the girl, after which he told her that she would be committing commercial sex acts for Hill. Saintvil transported Hill and the girl to various hotels where Hill caused her to engage in prostitution. Marietta, Georgia, Police Department officers found the girl with Hill on February 10, 2012, at a local motel.
U.S. v. Murray, King, and Branch
Additionally, Murray, King, and Branch engaged in conspiracy to commit, and commission of, sex trafficking of J.B., a 16-year-old girl, who the defendants knew was a runaway from New York. On or about June 30, 2012, Cobb County Police Department officers received a call from J.B., who reported that she was being held against her will. An FBI Special Agent and a detective with the Cobb County Crimes Against Children Unit immediately met with the girl, who told the investigators that she met Murray and King in May 2012. Murray took the girl to an apartment and soon after began, with King, to cause her to engage in prostitution at truck stops on Fulton Industrial Boulevard, and at various motels, in Atlanta. The men used the website “Backpage Atlanta” to solicit clients for the girl. Branch drove J.B. to the various locations where Murray and King trafficked her.
Sentences Imposed
- Murray, 27, of Tifton, Georgia, pleaded guilty on April 18, 2014, to conspiracy to commit, and commission of, sex trafficking of a minor and was sentenced by United States District Judge William S. Duffey, Jr. to 17 years, nine months in federal prison, followed by five years of supervised release.
- Branch, 24, of Atlanta, Georgia, pleaded guilty on October 13, 2013, to conspiracy to commit sex trafficking of a minor and was sentenced to five years, ten months in federal prison, followed by five years of supervised release.
- Saintvil, 27, of Miami, Florida, pleaded guilty on February 2, 2014, to conspiracy to commit sex trafficking of a minor and was sentenced to six years, six months in federal prison, followed by five years of supervised release.
- Hill, 27, of Atlanta, Georgia, also pleaded guilty on April 18, 2014, to conspiracy to commit sex trafficking of a minor and was sentenced to 16 years in federal prison, followed by five years of supervised release.
- King, 27, of Atlanta, Georgia, pleaded guilty on April 29, 2014, to sex trafficking of a minor and was sentenced to 14 years in federal prison, followed by 5 years of supervised release.
All the defendants must register as sex offenders as a condition of their supervised release. In addition, Murray, Hill, and Saintvil must pay restitution of $1,000 to minors O.M. and A.C.; Hill and Saintvil must pay restitution of $3,000 to minor M.Q.; and Murray, King, and Branch must pay restitution of $1,000 to minor J.B.
This case was investigated by the Federal Bureau of Investigation’s Metro Atlanta Child Exploitation Task Force with assistance from the Cobb County Police Department’s Crimes Against Children Unit, the Marietta Police Department, and the Cobb County District Attorney’s Office.
Assistant United States Attorneys Richard S. Moultrie, Jr. and Phyllis Clerk 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/gan/.
Five Individuals Charged in Nationwide Identity Theft SchemeRead the Press Release
Conspirators Obtain Identity Information of 125,000 Taxpayers and Submit Alleged False Federal Income Tax Returns Seeking $6.6 Million in Refunds from Internal Revenue Service
Federal law enforcement agents arrested four individuals in conjunction with a series of search and arrest warrants executed in Maryland and Georgia based on a federal grand jury indictment in the District of Oregon that was unsealed today.
The individuals arrested were:
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Lateef Aina Animawun, 34, of Smyrna, Georgia;
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Oluwatobi Rueben Dehinbo, 30, of Marietta, Georgia;
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Oluwaseunara Temitope Osanyinbi, 34, of Marietta; and
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Oluwamuyiwa Abolad Olawoye, 28, of Marietta.
A warrant has been issued for the arrest of a fifth defendant, Emmanuel Oluwatosin Kazeem, of Maryland. The remaining four defendants have made an initial appearance in Georgia, and will be arraigned in the District of Oregon at a date to be set by the court.
The indictment alleges that, beginning at least as early as tax year 2012, the named defendants, along with others, engaged in an identity theft conspiracy in Oregon and elsewhere that involved a scheme to obtain millions of dollars in fraudulent tax refunds from the Internal Revenue Service (IRS) and the Oregon Department of Revenue. The allegations of the indictment detail how the conspirators spun a complex web of fraud involving the use of stolen personal identifying information (PII), falsified wage and withholding information, fraudulently generated electronic filing PINs, disposable email addresses to conceal the co-conspirators’ identities, and the receipt of fraudulent tax refunds through prepaid debit cards and third party bank accounts.
“Attacking identity theft is among our highest priorities,” said Acting U.S. Attorney Billy J. Williams of the District of Oregon. “Those who unlawfully obtain personal identifying information wreak havoc on the lives of innocent taxpayers and will be held fully accountable.”
In total, the defendants are alleged to have unlawfully obtained the identity information from a data breach of over 125,000 taxpayers and filed over 980 false federal tax returns seeking over $6.6 million in fraudulent refunds. Although the IRS rejected $4.6 million of the claimed refunds, the indictment alleges that the defendants successfully obtained $2 million in illegal refunds.
“IRS Criminal Investigations Division is sworn to protect the tax system and bring to justice those who would steal from the Treasury,” said Assistant Special Agent in Charge Thomas Gutierrez of IRS-Criminal Investigation. “Would-be criminals should know: we’ve made identity theft related refund fraud our top priority. We understand that in these types of cases, the government is not the only victim. Identity theft can have a catastrophic emotional and financial impact on its victims. Our agents are determined to keep up the fight to eradicate identity theft and protect the honest taxpayers who would otherwise personally shoulder the immense burden of this crime.”
The indictment, which may be viewed here, charges each defendant with one count of conspiracy to commit mail and wire fraud, seven counts of mail fraud, six counts of wire fraud and thirteen counts of aggravated identity theft. The fraud and conspiracy charges are each punishable by up to 30 years in federal prison and a fine of up to $1 million. If convicted of the aggravated identity theft charges, the defendants face a mandatory minimum penalty of two years in federal prison for each count of conviction. An indictment is only an allegation of a crime. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services-Office of Inspector General, and the FBI, with support provided by U.S. Immigration and Customs Enforcement, U.S. Postal Inspection Service, the U.S. State Department and the Oregon Department of Revenue Fraud Unit. This case is being prosecuted by Assistant U.S. Attorneys Byron Chatfield and Nancy Olson of the District of Oregon.
Taxpayers are reminded to be vigilant in the protection of their personal identifying information. Anyone interested in more information on preventing or reporting suspected identity theft should review the IRS website.
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Five Essex County Men Charged in Heroin Distribution RingRead the Press Release
NEWARK, N.J. – Five Essex County, New Jersey, men were arraigned today on charges they ran an illegal drug mill that distributed at least one kilogram of heroin, U.S. Attorney Paul Fishman announced.
On April 28, 2015, a federal grand jury in Newark indicted each of the following defendants with one count of distributing and possessing with intent to distribute, and one count of conspiring to distribute, one kilogram or more of a mixture and substance containing heroin:
a. Lateef Grimsley, 25, of Newark, previously arrested and charged by complaint on Nov. 13, 2013.
b. Daquwann Walker, 24, of Newark, previously arrested and charged by complaint on Nov. 15, 2013.
c. Rassol China, 33, of Newark, previously arrested and charged by complaint on Nov. 22, 2013.
d. Bryant Rudd, 26, of Newark, previously arrested and charged by complaint on Feb. 11, 2014.
e. Shakur Billinghurst, 21, of Newark, previously arrested and charged by complaint on April 6, 2015.
The defendants were arraigned today before U.S. District Judge Jose L. Linares in Newark federal court.
According to the indictment, other documents filed in this case, and statements made in court:
During a drug trafficking investigation, special agents of the U.S. Drug Enforcement Administration (DEA) obtained information that the third-floor apartment of a building located in Newark was being used as a heroin mill. DEA special agents seized from the heroin mill more than one kilogram of heroin and a variety of drug paraphernalia and packaging materials.
Each of the two counts with which the defendants are charged carries a mandatory minimum term of 10 years in prison and a maximum term of life, and a $10 million fine.
U.S. Attorney Fishman credited special agents of DEA, under the direction of Special Agent in Charge Special Agent in Charge Carl Kotowski in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Barry A. Kamar of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel:
Grimsley: Angelo Servidio Esq., Nutley, N.J.
Walker: David A. Holman AFPD, Newark
China: Peter R. Willis Esq., Jersey City, N.J.
Rudd: Vincent J. Lapaglia Esq., Hoboken, N.J.
Billinghurst: Bruce S. Rosen Esq., Florham Park, N.J.
grimsley_lateef_et_al._indictment.pdf (195.55 KB)
Five Charged in Nationwide Identity Theft SchemeRead the Press Release
MEDFORD, Ore. - Federal law enforcement agents arrested four individuals in conjunction with a series of search and arrest warrants executed in Maryland and Georgia based on an Oregon federal grand jury indictment unsealed today.
The individuals arrested were:
- Lateef Aina Animawun, 34, of Smyrna, Georgia;
- Oluwatobi Rueben Dehinbo, 30, of Marietta, Georgia;
- Oluwaseunara Temitope Osanyinbi, 34, of Marietta, Georgia; and
- Oluwamuyiwa Abolad Olawoye, 28, of Marietta, Georgia.
A warrant has been issued for the arrest of a fifth defendant, Emmanuel Oluwatosin Kazeem of Maryland. The remaining four defendants have made an initial appearance in Georgia, and will be arraigned in the District of Oregon at a date to be set by the Court.
The indictment alleges that, beginning at least as early as tax year 2012, the named defendants, along with others, engaged in an identity theft conspiracy, in Oregon and elsewhere, involving a scheme to obtain millions of dollars in fraudulent tax refunds from the IRS and the Oregon Department of Revenue. The allegations of the indictment detail how the conspirators spun a complex web of fraud involving the use of stolen personal identifying information (PII), falsified wage and withholding information, fraudulently generated electronic filing PINs, disposable email addresses to conceal the co-conspirators’ identities, and the receipt of fraudulent tax refunds through prepaid debit cards and third party bank accounts. “Attacking identity theft is among our highest priorities. Those who unlawfully obtain personal identifying information wreak havoc on the lives of innocent taxpayers and will be held fully accountable,” said Acting U.S. Attorney Billy J. Williams.
In total, defendants are alleged to have unlawfully obtained the identity information from a data breach of over 125,000 taxpayers and filed over 980 false federal tax returns seeking over $6.6 million in fraudulent refunds. Although the IRS rejected $4.6 million of the claimed refunds, the indictment alleges that the defendants successfully obtained $2 million in illegal refunds. “IRS Criminal Investigations Division is sworn to protect the tax system and bring to justice those who would steal from the Treasury. Would-be criminals should know: we’ve made identity theft related refund fraud our top priority,” stated Assistant Special Agent in Charge Thomas Gutierrez of IRS Criminal Investigation. “We understand that in these types of cases, the government is not the only victim. Identity theft can have a catastrophic emotional and financial impact on its victims. Our agents are determined to keep up the fight to eradicate identity theft and protect the honest taxpayers who would otherwise personally shoulder the immense burden of this crime.”
The indictment, which may be viewed here "kazeem_et_al_indictment.pdf", charges each defendant with one count of conspiracy to commit mail and wire fraud; seven counts of mail fraud; six counts of wire fraud; and thirteen counts of aggravated identity theft. The fraud and conspiracy charges are each punishable by up to 30 years in federal prison and a fine of up to $1 million. If convicted of the aggravated identity theft charges, defendants face a mandatory minimum penalty of two years in federal prison for each count of conviction. An indictment is only an allegation of a crime. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case results from a joint investigation by IRS-Criminal Investigations Division, the U.S. Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation, with support provided by U.S. Immigration and Customs Enforcement, United States Postal Inspection Service, the U.S. State Department, and the Oregon Department of Revenue Fraud Unit. This case is being prosecuted by District of Oregon Assistant U.S. Attorneys Byron Chatfield and Nancy Olson.
Taxpayers are reminded to be vigilant in the protection of their personal identifying information. Anyone interested in more information on preventing or reporting suspected identity theft should review the IRS’s website at http://www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft.
Federal jury convicts physician's assistant for witness tamperingRead the Press Release
P.A. Was Employed by the Federal Bureau of Prisons
Beckley, W.Va. – United States Attorney Booth Goodwin announced that defendant Scotty Rose was convicted yesterday after a two-day jury trial in federal court in Beckley, West Virginia. Rose was convicted of tampering with a federal witness. Rose, 41, from Beckley worked in the Federal Correctional Institution in Beckley as a physician’s assistant. On February 6, 2013, Rose disclosed to an inmate that another inmate was wearing a wire and working for the FBI as an informant. The informant identified by Rose was, in fact, working with the FBI on a large scale methamphetamine trafficking investigation, and was wearing a recording device to further the investigation. News of the inmate informant spread quickly throughout the correctional facility, which placed the informant at risk. As a result, the informant was moved from the from the facility for his own safety, and the FBI investigation of the methamphetamine trafficking ring was abruptly terminated.
Rose faces up to three years in prison for witness tampering when he is sentenced on August 13, 2015. The Honorable Irene Berger presided over the trial.
The investigation was conducted by the Federal Bureau of Investigation, assisted by Bureau of Prison Investigators. Assistant United States Attorneys Erik S. Goes and Timothy Boggess were responsible for the prosecution.
El Paso Man Pleads Guilty to Robbing Midland BankRead the Press Release
In Midland this afternoon, 28–year-old Fabian Barrios of El Paso, TX, faces up to 20 years in federal prison after pleading guilty to robbing a bank in Midland announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Appearing before United States Magistrate Judge David Counts, Barrios pleaded guilty to one count of bank robbery. By pleading guilty Barrios admitted that on February 10, 2015, he robbed the Citibank, located at 1100 Andrews Highway in Midland. According to court records, Barrios and his accomplice, Alan Montes, approached a teller, displayed a weapon and demanded money. The teller complied and handed the men an undisclosed amount of money.
Co-defendant Alan Montes, also of El Paso, pleaded guilty on April 14, 2015, to the bank robbery charge. Both defendants remain in custody pending sentencing scheduled for June 24, 2015, before United States District Judge Robert Junell in Midland.
This case resulted from a joint investigation by the Federal Bureau of Investigation, Customs and Border Protection, the Texas Department of Public Safety in El Paso and the Midland Police Department. This case is being prosecuted by Assistant U.S. Attorney Austin Berry on behalf of the Government.
Dubuque Man Sentenced for Wire Fraud and Filing False Tax ReturnsRead the Press Release
A former Controller of a Dubuque company, who embezzled more $360,000, was sentenced on Monday, May 11, 2015, to more than two years in federal prison.
Michael Schute, age 51, from Dubuque, Iowa, received the prison term after a February 6, 2015 guilty plea to one count of wire fraud and one count of filing false tax returns.
In a plea agreement and at the sentencing hearing, Schute admitted he embezzled more than $365,000 from a privately-owned company between 2008 until he was fired in April 2013. Schute embezzled the money by writing checks on the company bank account to pay personal credit cards and other bills. Schute then concealed this conduct by falsifying the company books to make it appear the funds were expended on company debts. When filing his tax returns for the tax years 2008 through 2013, Schute falsely concealed the funds he received from the embezzlement for his own personal use. Illegal income is taxable. Schute owes more than $86,000 in taxes on the illegal income.
Schute was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Schute was sentenced to 33 months’ imprisonment. A special assessment of $200 was imposed, and he was ordered to make $306,848.56 in restitution to the company and its insurance company (Schute had previously paid back more than $56,000 in restitution to the victim company). Schute must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Schute was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the Internal Revenue Service and the Dubuque Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-1003.
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Drexel Hill Man Charged with Massive Fraud SchemeRead the Press Release
PHILADELPHIA - David Fili, Jr., 45 of Drexel Hill, Pennsylvania, was charged today by information with 10 counts of wire fraud and two counts of bank fraud in a $9.7 million scheme, announced United States Attorney Zane David Memeger.
From 2005 to March 2013, Fili was co-owner of Capital Financial Mortgage Corporation (“CFMC”), based in Delaware County, Pennsylvania. According to the information, during that time, Fili defrauded numerous lenders into purchasing mortgages issued by CFMC that were represented as first mortgages but that were, in reality, worthless second mortgages. He also allegedly defrauded other lenders who loaned money to CFMC on a warehouse line of credit. The information alleges that Fili helped defraud lenders out of approximately $9.7 million, some of which Fili used to pay his own mortgage on a vacation home and for extensive casino and sports gambling.
If convicted, Fili faces a potential advisory sentencing guideline range of 78 months to 135 months in prison, a five-year period of supervised release, full restitution, a fine of up to $10.5 million, and a $1,200 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Department of Housing and Urban Development, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
District of Columbia Man Sentenced to Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
Worked With Others to Seek More Than $1.1 Million in Fraudulent Refunds
A 32-year-old Washington, D.C., man was sentenced today to serve more than three years in prison for various crimes he committed in a far-reaching identity theft and tax fraud scheme in which he and others filed fraudulent federal income tax returns seeking more than $1.1 million in refunds, the Justice Department announced.
James Nelson is among approximately 12 people who have pleaded guilty in the U.S. District Court for the District of Columbia to charges in one of the largest prosecutions to date involving the use of stolen identifying information. The overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $40 million.
The sentencing was announced by Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C. Field Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C. Division, Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of Treasury and Acting Special Agent in Charge James M. Murray of the U.S. Secret Service’s Washington, D.C. Field Office.
Nelson pleaded guilty on Jan. 29 to conspiracy to defraud the United States with respect to claims, aiding and abetting in the making of false claims for refund and aiding and abetting in fraud and related activity involving identification information. He was sentenced to serve 41 months in prison by the Honorable U.S. District Judge Ellen S. Huvelle of the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release. In addition, as part of his plea agreement, Nelson must pay $636,026 in restitution to the IRS.
“One of the Tax Division’s highest priorities is prosecuting individuals who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “As in this case, this street crime often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and use all available tools to prosecute these offenders to the fullest extent of the law.”
“This criminal was part of a brazen scheme to flood the IRS with thousands of fake income tax returns and steal from honest taxpayers,” said Acting U.S. Attorney Cohen. “These thieves filed bogus tax returns with the stolen identities of people in nursing homes and prisons to generate fraudulent refunds. James Nelson is now headed to a federal penitentiary where he can no longer execute scams that drive up taxes on hardworking Americans who play by the rules.”
“Nelson’s greed will have a long-term impact on his victims and cause immeasurable harm to their financial well-being,” said IRS-CI Special Agent in Charge Kelly. “The selfish acts of criminals like Nelson have far-reaching consequences, and those like him, who steal from innocent victims and the U.S. Treasury, should be on notice that the government will aggressively pursue identity thieves and tax cheaters.”
“Today’s sentencing confirms that anyone who preys on citizens’ identification for financial gain, especially when they use the U.S. Mail to further their criminal activity, will be held accountable,” said Acting Postal Inspector in McGinnis. “The Postal Inspection Service values the collaboration with its law enforcement partners in the case.”
“This sentencing reinforces the commitment of Treasury’s Office of Inspector General and its law enforcement partners to pursue criminal charges against individuals and groups that prey on the public by stealing identities and fleecing the U.S. taxpayer and Treasury Department in their criminal schemes,” said Assistant Inspector General Phillips.
“The arrest of James Nelson is yet another example of how the Secret Service continues to successfully combat identity theft and financial crimes,” said Acting Special Agent in Charge Murray. “The Secret Service utilized state-of-the-art investigative techniques to dismantle this identity theft and tax fraud scheme. Our success in this case and other similar investigations is a result of extraordinary work of our investigators and our close work with our network of law enforcement partners.”
According to the government’s evidence, Nelson was among participants in a massive and sophisticated identity theft and false tax refund scheme involving an extensive network of more than 130 people, many of whom were receiving public assistance. The scheme started in 2006, and false claims for tax refunds were sought for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses in the District of Columbia.
From December 2007 through January 2012, according to the government’s evidence, Nelson used his residential addresses in the District of Columbia to receive some of the fraudulently obtained tax refunds. He also recruited others to receive fraudulent refunds at their addresses. For example, Nelson paid one woman about $150 per check for each refund check delivered to her residential address in the District of Columbia.
Approximately 360 fraudulent federal income tax returns listing the addresses that were under Nelson’s control were filed with the IRS. The returns sought refunds of approximately $908,500. As a result, the IRS sent out 238 checks, totaling about $524,795, and 184 of those checks, totaling $432,804, were ultimately cashed.
Nelson also recruited others to negotiate at least 86 other refund checks, totaling approximately $203,222, causing a total intended loss to the U.S. Treasury of more than $1.1 million.
In announcing the sentence, Acting Assistant Attorney General Ciraolo, Acting U.S. Attorney Cohen, Special Agent in Charge Kelly, Acting Inspector in Charge McGinnis, Assistant Inspector General Phillips and Acting Special Agent in Charge Murray commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jessica N. Moran and Jeffrey B. Bender of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
District of Columbia Man Sentenced to 41 Months in Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
WASHINGTON – James Nelson, 32, of Washington, D.C., was sentenced today to serve more than three years in prison for various crimes he committed in a far-reaching identity theft and tax fraud scheme in which he and others filed fraudulent federal income tax returns seeking more than $1.1 million in refunds, the Justice Department announced.
Nelson is among approximately 12 people who have pled guilty in the U.S. District Court for the District of Columbia to charges in one of the largest prosecutions to date involving the use of stolen identifying information. The overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $40 million.
The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C., Field Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division, Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of Treasury, and Acting Special Agent in Charge James M. Murray of the U.S. Secret Service’s Washington, D.C., Field Office.
Nelson pled guilty on Jan. 29 to conspiracy to defraud the United States with respect to claims, aiding and abetting in the making of false claims for refund and aiding and abetting in fraud and related activity involving identification information. He was sentenced to 41 months in prison by the Honorable U.S. District Judge Ellen S. Huvelle of the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release. In addition, as part of his plea agreement, Nelson must pay $636,026 in restitution to the IRS.
“This criminal was part of a brazen scheme to flood the IRS with thousands of fake income tax returns and steal from honest taxpayers,” said Acting U.S. Attorney Cohen. “These thieves filed bogus tax returns with the stolen identities of people in nursing homes and prisons to generate fraudulent refunds. James Nelson is now headed to a federal penitentiary where he can no longer execute scams that drive up taxes on hardworking Americans who play by the rules.”
“One of the Tax Division’s highest priorities is prosecuting individuals who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “As in this case, this street crime often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and use all available tools to prosecute these offenders to the fullest extent of the law.”
“Nelson’s greed will have a long-term impact on his victims and cause immeasurable harm to their financial well-being,” said IRS-CI Special Agent in Charge Kelly. “The selfish acts of criminals like Nelson have far-reaching consequences, and those like him, who steal from innocent victims and the U.S. Treasury, should be on notice that the government will aggressively pursue identity thieves and tax cheaters.”
“Today’s sentencing confirms that anyone who preys on citizens’ identification for financial gain, especially when they use the U.S. Mail to further their criminal activity, will be held accountable,” said Acting Postal Inspector in Charge McGinnis. “The Postal Inspection Service values the collaboration with its law enforcement partners in the case.”
“This sentencing reinforces the commitment of Treasury’s Office of Inspector General and its law enforcement partners to pursue criminal charges against individuals and groups that prey on the public by stealing identities and fleecing the U.S. taxpayer and Treasury Department in their criminal schemes,” said Assistant Inspector General Phillips.
“The arrest of James Nelson is yet another example of how the Secret Service continues to successfully combat identity theft and financial crimes,” said Acting Special Agent in Charge Murray. “The Secret Service utilized state-of-the-art investigative techniques to dismantle this identity theft and tax fraud scheme. Our success in this case and other similar investigations is a result of extraordinary work of our investigators and our close work with our network of law enforcement partners.”
According to the government’s evidence, Nelson was among participants in a massive and sophisticated identity theft and false tax refund scheme involving an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought since 2006 for tax years 2005 through 2012, often in the names of people, whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses in the District of Columbia.
From December 2007 through January 2012, according to the government’s evidence, Nelson used his residential addresses in the District of Columbia to receive some of the fraudulently obtained tax refunds. He also recruited others to receive fraudulent refunds at their addresses. For example, Nelson paid one woman about $150 per check for each refund check delivered to her residential address in the District of Columbia.
Approximately 360 fraudulent federal income tax returns listing the addresses that were under Nelson’s control were filed with the IRS. The returns sought refunds of approximately $908,500. As a result, the IRS sent out 238 checks, totaling about $524,795, and 184 of those checks, totaling $432,804, were ultimately cashed.
Nelson also recruited others to negotiate at least 86 other refund checks, totaling approximately $203,222, causing a total intended loss to the U.S. Treasury of more than $1.1 million.
In announcing the sentence, Acting U.S. Attorney Cohen, Acting Assistant Attorney General Ciraolo, Special Agent in Charge Kelly, Acting Inspector in Charge McGinnis, Assistant Inspector General Phillips and Acting Special Agent in Charge Murray commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jessica N. Moran and Jeffrey B. Bender of the Tax Division, who prosecuted the case.
Detroit man sentenced on federal drug trafficking chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Terrance Wilson, 26, of Detroit, Michigan was sentenced to 15 months in federal prison after pleading guilty in February of 2015 to interstate travel in aid of drug trafficking. Wilson admitted that he transported heroin from Detroit to Charleston multiple times in November and December of 2014, with the intent to carry out an ongoing business enterprise involving the distribution of heroin in the Charleston area.
On four occasions between December 1 and December 4, 2014, Wilson sold heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team (“MDENT”).
United States District Judge John T. Copenhaver, Jr. presided over this case. The case was investigated by MDENT.
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 and heroin trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Department of Justice Announces New Acting Administrator of Drug Enforcement AdministrationRead the Press Release
The Department of Justice today announced the appointment of Chuck Rosenberg to serve as Acting Administrator of the Drug Enforcement Administration (DEA).
“Throughout his distinguished career in law enforcement and public service, Chuck has earned the trust and the praise of his colleagues at every level,” said Attorney General Loretta E. Lynch. “He has proven himself as an exceptional leader, a skilled problem-solver, and a consummate public servant of unshakeable integrity. And he has demonstrated, time and again, his deep and unwavering commitment not only to the women and men who secure our nation, but to the fundamental values that animate their service. As Acting Administrator of the DEA, Chuck will play a vital role in the work of this Administration and this Department of Justice to pursue American priorities, protect American interests, and safeguard our way of life. I can think of no better individual to lead this storied agency, and I have no doubt that his tenure will be defined by the same commitment to honor and excellence that has guided him throughout his distinguished career. I congratulate him once again on this well-deserved appointment, and look forward to all that he will achieve in the days ahead.”
A veteran of the Justice Department, Rosenberg currently serves as Chief of Staff to the Director of the FBI. In this role, he works closely with Director James B. Comey and other senior FBI officials on counterterrorism, intelligence, cyber and criminal investigative issues, including with international, federal, state and local law enforcement partners. He also works closely with Director Comey on management, policy and personnel issues.
“Chuck Rosenberg is one of the finest people and public servants I have ever known,” said Director Comey. “His judgment, intelligence, humility, and passion for the mission will be sorely missed at FBI. I congratulate our friends at the Drug Enforcement Administration. This is good for the entire Department of Justice and the country.”
Rosenberg was presidentially appointed and confirmed as the U.S. Attorney of the Eastern District of Virginia, from 2006 through 2008, and appointed by the Attorney General to serve as the U.S. Attorney of the Southern District of Texas, from 2005 through 2006.
Rosenberg was hired out of law school through the Attorney General’s Honors Program and has served in numerous positions throughout the Department of Justice, including Chief of Staff to the Deputy Attorney General from 2004 through 2005, Counselor to the Attorney General from 2003 through 2004, Counsel to the Director of the FBI from 2002 through 2003, an Assistant U.S. Attorney in the Eastern District of Virginia from 1994 through 2000, and a Trial Attorney for the Tax Division’s Criminal Enforcement Section from 1990 through 1994.
Rosenberg has also spent time working in private practice as Counsel at Hunton and Williams, from 2000 through 2002, and as a partner at Hogan Lovells US LLP (2008-2013).
During his years as a federal prosecutor, Rosenberg conducted grand jury investigations and has been the lead trial lawyer in many federal prosecutions involving espionage, kidnapping, murder, crimes against children and complex financial fraud cases.
Rosenberg received his B.A. from Tufts University, his M.P.P. from Harvard University and his J.D. from the University of Virginia.
Rosenberg will assume the role of Acting Administrator on May 18, 2015. He will replace Administrator Michele Leonhart, who previously announced her retirement.
“Michele has devoted her professional career to the security of our nation and the protection of the American people,” said Attorney General Lynch. “I want to thank her for her 35 years of service to the DEA, to the Department of Justice and to the country, and I wish her well as she embarks on a new chapter in her already extraordinary life.”