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Monday 11 May 2015
Exeter Man Charged with Distributing Crack CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an indictment was returned on Tuesday, May 5, 2015, by a grand jury in Scranton charging an Exeter man with distribution of crack cocaine.
According to United States Attorney Peter J. Smith, the indictment charges that Sekou Lashley, age 36, of Exeter, Pennsylvania, distributed cocaine base (crack) in Plains Township, Pennsylvania, on March 19, 2015.
The investigation was conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney Peter Hobart is prosecuting the case.
The maximum penalty under federal law for distributing cocaine is 20 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine.
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.
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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Embezzler Sentenced to 41 Months in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James Moody has sentenced John Yates (42, Ruskin) to three years and five months in federal prison for mail fraud and access device fraud. As part of his sentence, the Court also entered a money judgment in the amount of $286,279.50, which are the proceeds traceable to his criminal conduct. Yates pleaded guilty on January 29, 2015.
According to court documents, in January 2009, Yates was employed by Federal Marine Terminals (FMT) as the manager of the Port Tampa Bay office. As manager, he would oversee the movement of inbound import shipping containers that had been identified for inspection by U.S. Customs and Border Protection. He would then bill customers for FMT’s services in the form of invoices. Yates was responsible for preparing, mailing, and faxing the invoices. Customers were directed to mail payments FMT’s facility in Port Manatee.
In December 2011, while Yates was on vacation, another FMT employee discovered five invoices that looked like FMT invoices, but directed payments to “THW,” in Tampa. A subsequent investigation revealed that the THW payments were deposited into a bank account controlled by Yates. Eighty-nine companies remitted payments to Yates totaling $270,279.50. He was subsequently fired from his position.
After being fired from FMT, Yates was hired as a dispatcher by JRC Transportation, Inc., a large trucking company. There, Yates entered phantom loads into JRC’s system and diverted the related payments back to him. Yates embezzled approximately $30,000 from JRC.
This case was investigated by the U.S. Postal Inspection Service and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
East St. Louis Man Sentenced to 120 Months in Federal Prison for Drug, Attempted Robbery, and Firearm OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Micky Gibb, 25, of East St. Louis, Illinois, was sentenced on Friday by United States District Court Judge David R. Herndon to 120 months in federal prison for committing four felonies in July 2013: (1) conspiracy to possess with intent to distribute cocaine; (2) attempted interference with commerce (robbery); (3) using or carrying firearms in furtherance of a drug trafficking offense and a crime of violence; and (4) possession of a firearm by a convicted felon.
According to court documents, in July 2013, Gibb agreed with two men to rob a drug stash house containing cocaine. Gibb’s codefendants brought two loaded firearms with them to assist in the robbery. ATF agents, who had been investigating Gibb and his codefendants’ plans to commit the robbery, arrested the three men in St. Louis. Gibb was charged in federal court in East St. Louis, Illinois with four charges and pled guilty to all counts.
Gibb was sentenced to a total of 120 months in federal prison. There is no parole in the federal prison system. In addition to the prison sentence, Gibb must serve a total of five years of supervised release and pay $400 in court fees.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant United States Attorney Monica A. Stump was assigned the prosecution.
Eagle Butte Man Sentenced for Assault by Striking, Beating and WoundingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault by Striking, Beating and Wounding was sentenced on May 8, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Loren LaPlante, Jr., age 24, was sentenced to 18 months of probation, $100.96 in restitution, and $25 to the Federal Crime Victims Fund.
LaPlante was indicted by a federal grand jury on February 11, 2015. He pled guilty on March 16, 2015.
The conviction stems from an incident on January 9, 2015, when LaPlante, who was intoxicated in a bar in Dupree, got into a verbal confrontation with an adult male victim who was playing darts. Once the victim was done playing darts, he approached LaPlante, who sucker-punched the victim in the face. The Defendant’s assault was made without just cause or excuse, and it struck and wounded the victim, who needed medical attention for the injury to his face.
This case was investigated by the Cheyenne River Sioux Tribal Law Enforcement Agency. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Dublin Resident Sentenced in False Tax Refund SchemeRead the Press Release
OAKLAND – Kenya Brown was sentenced Friday, May 8, 2015, to twelve months in prison and ordered to pay $221,124 in restitution for her involvement in a false tax refund scheme, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
Brown, 31, of Dublin, Calif., pleaded guilty today to conspiracy to file a false claim. According to the plea agreement, from April 2009 through June 2011, Brown conspired to file more than 139 false federal income tax returns with the IRS. As part of the conspiracy, Brown electronically filed false returns from residences in San Leandro and Oakland. The tax returns requested refunds based on fictitious W-2 forms. To carry out the scheme, Brown instructed the IRS to wire the fraudulent refunds onto debit cards. In total, Brown filed documents seeking in excess of $700,000 in false tax refunds.
On January 8, 2015, Brown was charged in a nine count indictment with conspiracy to file false claims, wire fraud, theft of public money, and aggravated identity theft. Brown pleaded guilty to conspiracy to file false claims. At sentencing, Brown was also ordered to pay restitution in the amount of $221,124.Brown is already in custody as a result of a prior conviction. During the execution by the IRS of a search warrant at Brown’s home on July 28, 2011, she was found in possession of nearly two pounds of cocaine and a firearm. Brown was charged with possession with the intent to distribute cocaine and being a felon in possession of a firearm. On December 7, 2011, as the tax investigation continued, Brown was sentenced on the drug and weapons charges, and is serving a 60 month sentence on those charges.
Assistant U.S. Attorney Thomas Newman is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Drug Free Clubs of America honored for innovative commitment to drug preventionRead the Press Release
Drug Free Clubs of America honored for innovative commitment to drug prevention
WHEELING, WEST VIRGINIA – Drug Free Clubs of America was presented today with the 2015 Community Outreach Award from United States Attorney William J. Ihlenfeld, II, in recognition of its commitment to drug prevention.
In 2005, a dedicated group of firefighters in Cincinnati, were determined to find a way to loosen the grip of substance abuse in their community. Their vision was to remove the powerful temptation of peer pressure and make it easy for young people to make informed, healthy decisions. They founded Drug Free Clubs of America and developed a creative program. Students that join drug free clubs are subject to periodic, random drug tests. Schools, restaurants, and businesses provide those students with discounts and other incentives to remain drug free. Perhaps most importantly, Drug Free Clubs members are provided with a tangible membership card that students can show when they are faced with the fierce temptation of peer pressure.
Today, Drug Free Clubs of America is a thriving non-profit organization with chapters throughout Ohio, Kentucky, and West Virginia. In 2010, Wheeling Central Catholic High School opened the first Drug Free Clubs chapter in West Virginia and recently became the second school in the country where students choosing not to participate in Drug Free Clubs are in the minority. This year, over 750 West Virginia teens are members of Drug Free Clubs. Wheeling Park High School has the largest chapter in West Virginia with over 230 student members.
Drug Free Clubs has developed a variety of creative partnerships in West Virginia. In 2012, West Liberty University became the first higher education program to offer a scholarship to any student who was a member of Drug Free Clubs for all four years of high school. Student leaders from Drug Free Clubs chapters in the northern panhandle have partnered with the United States Attorney’s Office to produce an innovative series of drug awareness videos.
The United States Attorney’s Awards ceremony took place at the United States Post Office and Federal Courthouse in Wheeling and included remarks from U.S. District Judge John Preston Bailey and U.S. Attorney Ihlenfeld. A variety of local, state, and federal law enforcement agencies were represented along with community leaders, volunteers, and advocates.
Dorchester Gang Member Sentenced to over Twelve Years in Prison for Sex Trafficking MinorsRead the Press Release
Boston – A Dorchester man was sentenced today in U.S. District Court in Boston for sex trafficking minors.
Miriam Kizzie, a/k/a “Keys” and “Keyshawn,” 21, was sentenced by U.S. District Court Judge William G. Young to 153 months in prison and five years of supervised release. In February 2015, Kizzie pleaded guilty to two counts of sex trafficking of two minor women.
In July 2013, Kizzie met a 14-year-old and a 15-year-old girl, and, shortly thereafter, photographed the girls in suggestive poses. Kizzie created online advertisements for commercial sex using their photographs and posted the ads on the Internet. Over the course of the next week, both girls were repeatedly advertised online for prostitution and continued to see prostitution clients, primarily in Dorchester apartments, but also in the apartments of men who responded to the advertisements.
At today’s sentencing hearing, the mother of each victim addressed the court explaining the impact that the trafficking had on their teenage daughters and their families. One of the victims, now 16-years-old, addressed the court herself and described not only the impact of Kizzie’s actions but also her ongoing struggles as a result of the crime. She said, “He broke me. He lied to me. I’ve spent the past almost two years trying to put myself back together again.”
In addition to the charges against Kizzie, the indictment charged Anthony Pledger, a/k/a “Polo,” and “Jaden,” 26, with sex trafficking two other minors in October 2013 in Massachusetts in Rhode Island. Court documents allege that Pledger and Kizzie were members of the Thetford Avenue Buffalos, a local Boston street gang. In February 2015, Pledger pleaded guilty to two counts of sex trafficking the two minors and is scheduled to be sentenced on May 28, 2015.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans made the announcement today. The case was also investigated by the Rhode Island State Police, Massachusetts State Police, and the Brookline, Providence, Brockton, and Dedham Police Departments. Significant assistance was provided by the Rhode Island Attorney General’s Office and the Plymouth, Middlesex and Suffolk County District Attorney’s Offices. The case is being prosecuted by Assistant U.S. Attorneys Amy Harman Burkart and Timothy E. Moran of Ortiz’s Civil Rights Enforcement Team.
Members of the public who have questions, concerns, or information regarding this case should call (617) 748-3274, and messages will be promptly returned.
Depew Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Mark Newman, 56, of Depew, NY, pleaded guilty to possession of child pornography, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on September 26, 2012, a search warrant was executed at the defendant's residence. Items seized from Newman’s residence that contained child pornography included a Toshiba laptop computer. A forensic analysis uncovered approximately 300 videos of child pornography stored on the computer. Some of the images depicted prepubescent minors or minors less than 12 years of age, as well as images of violence. In addition, as part of the plea agreement, Newman admitted that he has engaged in a pattern of sexual abuse of a minor.
The plea is the result of an investigation on the part of Agents of the Federal Bureau of Investigation.
Sentencing is scheduled for August 13, 2015, at 4:00 p.m. before Judge Wolford.
DeLand Man Sentenced to 65 Years for Child ExploitationRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced David Jacob William Guite (31, DeLand) to 65 years in federal prison for producing and distributing child pornography. Guite pleaded guilty on February 20, 2015.
According to court documents, an FBI task force officer, acting in an undercover capacity, posted an advertisement on a website frequented by individuals who have a sexual interest in children and incest. Guite responded to the ad and, during the ensuing conversation, sent the agent sexually explicit images of a young boy.
On October 29, 2014, FBI agents executed a federal search warrant at Guite’s residence. During an interview, he admitted to manufacturing, possessing, and distributing sexually explicit images of minor children. A search and subsequent analyses of Guite’s smart phone and computer revealed hundreds of sexually explicit images and videos of young children.
This case was investigated by the Federal Bureau of Investigation, the DeLand Police Department, and the Volusia County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dasean Nisbett of Bronx, New York Sentenced to Time Served for Possession with Intent to Distribute OxycodoneRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Dasean Nisbett, 24, of Bronx, New York was sentenced today to time served and three years of supervised release based on his arrest for possession with intent to distribute Oxycodone pills. U.S. District Judge William K. Sessions III also ordered that Nisbett submit to a period of home detention and location monitoring, as well as complete 100 hours of community service.
According to court records, on March 3, 2013, Nisbett arrived in Burlington after midnight on the Megabus from New York City. After a police canine alerted on the area of the bus where Nisbett had been sitting, University of Vermont Police approached Nisbett as he walked down Main Street. Nisbett denied having anything illegal in his possession and permitted law enforcement to search his person. A subsequent search revealed a bag of 1,000 oxycodone pills concealed in Nisbett’s underwear. Nisbett was subsequently indicted federally for possession with intent to distribute oxycodone.
This matter was investigated by the U.S. Drug Enforcement Administration and the University of Vermont Police Department. The government was represented by Assistant U.S. Attorney Kevin Doyle. Dasean Nisbett was represented by Michael L. Desautels, the Federal Defender for the District of Vermont.
Contractor charged with bribery of postal managerRead the Press Release
A contractor for the U.S. Postal Service’s Vehicle Maintenance Facility in Cleveland was charged with bribing a public official, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Monica Weyler, Special Agent in Charge of the U.S. Postal Service’s Office of Inspector General Eastern Area Field Office.
Andrew Maloney, Jr., 37, of Bedford Heights, was charged by criminal information with a single count of bribery of a public official.
The information charges that Maloney received a contract for vehicle maintenance and repair with the Postal Service Vehicle Maintenance Facility at 1801 Broadway Avenue in Cleveland. The information alleges that the Facility’s manager, Kevin R. Hood, used his position to extort cash bribes and vehicle repair services from Maloney in exchange for work under the contract. According to the information, Maloney made cash payments and provided free services to Hood between May 2011 and December 2013 to secure and maintain the contract.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Miranda E. Dugi following an investigation by special agents of the U.S. Postal Service’s Office of Inspector General.
Chamberlain Man Sentenced for LarcenyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Chamberlain, South Dakota, man convicted of Larceny was sentenced on May 11, 2015, by U.S. District Judge Roberto A. Lange.
James Short Bear, age 19, was sentenced to 8 months in custody, $500 in restitution, and a special assessment of $100 to the Federal Crime Victims Fund.
Short Bear was indicted by a federal grand jury on February 11, 2015. He pled guilty on March 26, 2015.
The conviction stems from an incident which occurred between February 11, 2014, and February 13, 2014, when Short Bear entered the Lower Brule Sioux Tribal administration building and stole a ceremonial pipe known as a Chanupa. The Chanupa had been purchased by the Tribe in 2006 for $5,500. Short Bear was captured on video entering the building and leaving a short time later with the Chanupa. After a few months had passed, Short Bear pawned the pipe for $500, claiming he had made it himself.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Lower Brule Law Enforcement Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Short Bear was immediately turned over to the custody of the U.S. Marshals Service.
Cabell County man pleads guilty for failure to register as a sex offenderRead the Press Release
HUNTINGTON, W.Va. - A 55-year old Cabell County man faces up to 10 years in prison after pleading guilty today to failing to register as a sex offender, U.S. Attorney Booth Goodwin announced. Daniel Walter Varnes, of Huntington, West Virginia, entered a guilty plea before Chief District Court Judge Robert C. Chambers.
Varnes was convicted in 2000 in Colorado of Sexual Assault of a Child Under Age 15 by a Person in a Position of Trust. As a result of that conviction, Varnes was required to register as a sex offender. In August of 2014, Varnes moved to Huntington, West Virginia, and did not register as a sex offender despite knowing it was required by law. He continued to reside and work in Huntington without registering until his arrest on February 6, 2015.
The court scheduled sentencing for Varnes for August 10, 2015, in Huntington, West Virginia.
The United States Marshals Service and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Brothers Sentenced to Federal Prison for Delivery of Heroin Resulting in DeathRead the Press Release
PORTLAND, Ore. - Gerardo Chalke Lopez (a.k.a. “La Loca”), 41, and Sergio Quezada-Lopez (a.k.a. “Cheche” , 36, of Nayarit, Mexico, appeared for sentencing on April 28 and April 29, 2015, before U.S. District Judge Michael Simon. The brothers were sentenced to 18 and 15 years prison, followed by five years of supervised release, and ordered to pay restitution for their roles in a conspiracy to distribute heroin, that resulted in death of a young woman. The brothers were also sentenced each to 27 months prison on illegal re-entry charges to run concurrent with the drug sentences.
The investigation began on April 16, 2012 when police officers responded to the Keizer, Oregon residence of 21 year old Laurin Putnam, who was found deceased. The initial investigation indicated that her death was likely caused by a heroin overdose and later confirmed by the Oregon State Medical Examiner’s Office. Soon after her death, investigators learned the identity of the last person in the chain that was responsible for distributing the heroin to Putnam that caused her death. From there, investigators were able to identify several conspirators and move six levels up the chain of distribution to brothers Gerardo Chalke Lopez and Sergio Quezada-Lopez. During the investigation, agents learned that the brothers were higher level members of a large scale conspiracy involving the distribution of significant quantities of heroin in Oregon, Washington, Nevada, and Colorado.
The investigation of the case was led by the Drug Enforcement Administration (DEA) through its Salem DEA Drug Task Force, and the Keizer Police Department with assistance from the Salem Police Department; the Marion County Sheriff's Office; the Oregon State Police; the Washington County Interagency Narcotics Team (WIN); the Portland Police Bureau; the Oregon State Medical Examiner; the Clark-Skamania Drug Task Force; the Oregon Department of Justice; and, the Portland based Highway Interdiction Team.
The case was prosecuted by Assistant U.S. Attorneys Kemp Strickland and Kathleen Bickers.
Belleville Woman Sentenced for Making False Claims in Operating Tax Preparation BusinessRead the Press Release
Dorresa Braggs, 46, of Belleville, Illinois, was sentenced to serve a total of 70 months in federal prison, followed by three years supervised release, as a result of her convictions for ten counts of Making False Claims Against the United States and one count of Aggravated Identity Theft, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
In Braggs’ case, potential fraud was detected by the Scheme Development Center of the I.R.S. The investigation determined that from 2010 through 2012, Braggs filed 152 fraudulent tax returns for the tax year 2010 and 49 fraudulent tax returns for the tax year 2011, for a total of 201 fraudulent tax returns. The 201 fraudulent tax returns submitted to the IRS created an attempted total tax loss of $1,395,370. The IRS declined or denied a significant amount of the fraudulent tax returns submitted by Braggs and the amount paid by the IRS was determined to be $579,705, which was ordered to be repaid as restitution.
The returns included fraudulent or falsified W-2 (income/withholdings) Schedule C (business expenses/losses), and Form 8863 (education credits) and falsified dependents. Braggs submitted the claims via the internet using H&R Block and Turbotax software, and refunds were issued in check and direct deposit form. The direct deposit refunds were typically issued to prepaid debit cards, which the defendant purchased and used to receive and disperse the fraudulent tax refunds. The addresses used on the tax returns were typically not the right address for the taxpayer but an address that she controlled through a friend or family member. The refunds, if directed to be loaded on prepaid cards were often a different address than the tax return or the real address of the taxpayer. Braggs’ tax preparation fee ranged from $500 to $1,000, and her fees were based on the amount of refund the client received. At sentencing it was disclosed that Braggs even filed a tax return for her oldest son, who was in jail for a murder. At the time he was in the Illinois Department of Corrections, Braggs filed a federal tax return on his behalf claiming he was working at a St. Louis hospital and had a side business as a mechanic. Braggs spent a large portion of the money received from the fraudulent tax returns gambling at St. Louis area casinos.
It was also revealed that at the time she was in the business of preparing fraudulent returns, Braggs was also receiving public aid. Braggs was collecting food stamps, receiving
housing assistance from St. Clair County, and was a representative payee for Social Security benefits for her son.
The successful prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Baltimore Drug Dealer Exiled to 14 Years in Prison for Robbing A Pharmaceutical Truck and Conspiring to Distribute CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles Jr. sentenced Donte Walter Robinson, age 36, of Baltimore, today to 14 years in prison followed by five years of supervised release for conspiring to distribute five or more kilograms of cocaine, and robbery. Judge Quarles also ordered Robinson to pay restitution of $75,186.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on December 13, 2010, Robinson and others robbed a pharmaceutical delivery truck. Robinson obtained a U-Haul as the get-away vehicle. Three co-conspirators waited for the pharmaceutical delivery truck to arrive at a pharmacy on West Pratt Street in Baltimore. When the driver got out of the truck and opened the rear door, two co-conspirators jumped into the truck and pointed a loaded gun at the truck driver. They tied the driver’s hands behind his back and continued to hold a gun on him. One of the co-conspirators stayed in the back with the driver while the other drove the truck, with Robinson driving the U-Haul behind them. They drove to the 2000 block of Annapolis Road in Baltimore where they transferred the pharmaceuticals, worth a total of $75,186, to the U-Haul.
Additionally, on six occasions from January to May, 2011, Robinson flew with other co-conspirators from Baltimore to McAllen, Texas to transport one to two kilograms of cocaine, per trip, back to Maryland on behalf of a drug dealer. Robinson knew that the cocaine was to be distributed in Maryland.
United States Attorney Rod J. Rosenstein commended the FBI, DEA, HSI Baltimore, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Christopher Romano, who prosecuted the case.
Friday 8 May 2015
Wilkes-Barre Man Sentenced to 80 Months’ Imprisonment for Distribution of CocaineRead the Press Release
WILKES-BARRE- The United States Attorney's Office for the Middle District of Pennsylvania announced that Senior United States District Court Judge A. Richard Caputo sentenced Shawn Morse, age 43, of Wilkes-Barre, yesterday to 80 months’ imprisonment for his involvement in the distribution of cocaine between 2010 and April 2013.
According to United States Attorney Peter Smith, Morse was involved in the distribution of cocaine in the Wilkes-Barre area. On April 3, 2013, FBI Agents arrested Morse at his Wilkes-Barre home. On November 17, 2014, Morse appeared in federal court and pleaded guilty to a criminal information which charged him with cocaine distribution.
In addition to the 80-month term of imprisonment, Judge Caputo ordered that Morse be placed under the supervision of the United States Probation Office for a period of three years following the service of his prison sentence.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, and the Luzerne County District Attorney’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
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Violent Bloods Gang Member Sentenced to 13 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Abdur Rahman Roland, 26, of Alexandria, was sentenced today to 156 months in prison, followed by three years of supervised release for his role in multiple armed robberies, including an armed home invasion robbery where innocent bystanders were assaulted and restrained.
Roland pleaded guilty to four felonies, including Hobbs Act robberies and firearms offenses, on Feb. 19, 2015.
According to court documents, Roland, along with other coconspirators, robbed a marijuana dealer in Prince William County. During the robbery the assailants held the dealer and a passenger at gun point and proceeded to steal the marijuana, the dealer’s wallet, his keys, and his vehicle. Following this armed carjacking, Roland and his coconspirators, using the carjacking victim’s identification and keys, engaged in an armed home invasion robbery. This robbery, which took place just hours after the carjacking, involved the physical assault and restraint of innocent bystanders who were in the home. In addition to these two robberies, Roland, who was previously convicted of a felony, illegally possessed a firearm during a confrontation in Prince William County. During this particular incident, Roland and his coconspirators threw bricks through the windows of the occupied dwelling and fired shots into the residence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department, with assistance from the Prince William County Police Department as well as the Prince William and Spotsylvania Commonwealth Attorneys’ Offices. Assistant U.S. Attorney Zachary Terwilliger and Special Assistant U.S. Attorney Catherine Ahn are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-53.
Vadian Bank AG Reaches Resolution Under Department of Justice Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Vadian Bank AG (Vadian), located in St. Gallen, Switzerland, reached a resolution under the Department of Justice’s (DOJ) Swiss Bank Program.
“The department continues to work with Swiss banks to reach final resolutions in accordance with the terms of the program, and is focused on its goal of completing this process expeditiously,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division. “Simultaneously, the department has opened investigations of culpable individuals and entities based on information obtained from the Swiss banks in the program, and will pursue and prosecute those engaged or assisting others in evading U.S. tax obligations.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
- Make a complete disclosure of their cross-border activities;
- Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
- Cooperate in treaty requests for account information;
- Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
- Agree to close accounts of account holders who fail to come into compliance with U.S. reporting obligations; and
- Pay appropriate penalties.
Banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, Vadian agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a $4.253 million penalty in return for the department’s agreement not to prosecute Vadian for tax-related criminal offenses.
Vadian has one office and 26 employees. Prior to 2008, Vadian’s business predominantly consisted of savings accounts, residential mortgage lending and small business loans. In 2007, Vadian hired a marketing firm to assist with its planned growth into private banking, and focused its efforts on attracting external asset managers. In 2008, after it became publicly known that UBS was a target of a criminal investigation, Vadian accepted accounts from U.S. persons who were forced out of other Swiss banks. At this time, Vadian’s management was aware that the U.S. authorities were pursuing Swiss banks that facilitated tax evasion for U.S. accountholders in Switzerland, but was not deterred because Vadian had no U.S. presence. As a result of its efforts, after August 2008, Vadian attracted cross-border private banking business and increased its U.S. related accounts from two to more than 70, with $76 million in assets under management.
Through its managers, employees and/or other individuals, Vadian knew or believed that many of its U.S. accountholders were not complying with their U.S. tax obligations, and Vadian would and did assist those clients to conceal assets and income from the IRS. Vadian’s services included: “hold mail” services; numbered accounts, where the client was known to most bank employees only by a number or code name; opening and maintaining accounts for U.S. taxpayers through non-U.S. entities such as corporations, trusts or foundations; and accepting instructions from U.S.-based accountholders to prevent investments from being made in U.S.-based securities that would require disclosure to U.S. tax authorities.
In resolving its criminal liabilities under the program, Vadian provided extensive cooperation and encouraged U.S. accountholders to come into compliance.
While Vadian’s U.S. accountholders who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS’s offshore voluntary disclosure programs, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS offshore voluntary disclosure program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of Vadian’s non-prosecution agreement, its noncompliant U.S. accountholders must now pay that 50 percent penalty to the IRS if they wish to enter the IRS’ program.
“Today’s action is another warning for those who are still considering hiding money offshore to evade U.S. tax laws,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “The IRS and DOJ continue to aggressively work together to put an end to this abuse. When individuals and institutions allow this to happen, they are not only cheating the U.S. government, they are cheating the honest taxpaying citizens who are obeying the law and doing the right thing.”
Acting Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-CI and IRS’s Large Business and International Division (LB & I) for their substantial assistance, as well as Trial Attorney Michael Wilcove of the Tax Division, who served as lead counsel on this matter, and Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
United States Settles False Claims Act Allegations Against Multiple Jacksonville Hospitals and an Ambulance Company for $7.5 MillionRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces that the United States has settled allegations that nine hospitals in Jacksonville had a practice of routinely ordering basic life support ambulances when this type of transport was not medically necessary. The United States has also settled allegations with an ambulance company for its role in submitting millions of dollars of false claims to federal healthcare programs. The allegations resolved included liability under the False Claims Act (FCA).
After a multiple-year investigation, the United States announces settlements with the following defendants: Baptist Health, who owns and operates four hospitals in Jacksonville (settlement of $2.89 million); Memorial Hospital, Specialty Hospital, Lake City Medical Center, and Orange Park Medical Center (collective settlement of $2.37 million); UF Health Jacksonville (settlement of $1 million); and Century Ambulance Service (settlement of $1.25 million). In reaching this settlement, the parties resolved allegations that, from January 1, 2009, until April 2014, the hospitals provided Certificates of Medical Necessity that attested to the need for basic life support, non-emergency ambulance transports even when these transports were not medically necessary. With respect to Century Ambulance, the parties resolved allegations, for the same time period, that Century Ambulance knowingly up-coded claims from Basic to Advanced life support, unnecessarily transported patients, and unnecessarily transported patients to their homes in an “emergent” fashion.
“The United States Attorney’s Office is committed to taking the steps necessary to protect Medicare, TRICARE, and other federal health care programs from fraud,” said U.S. Attorney Bentley. “Whether the fraud is intentional or the product of deliberate ignorance, we will pursue these cases and recover taxpayer money.”
“Hospital staff that certify the medical need for services when they are in fact not medically necessary fail in their role as gatekeepers of valuable taxpayer-funded health care programs,” said Chief Counsel to the Inspector General Gregory E. Demske of the U.S. Department of Health and Human Services Office of Inspector General.
Today’s settlement involved false claims submitted to Medicare, TRICARE, Medicaid, and the Federal Employees Health Benefits Program managed by the Office of Personnel Management. This case was initiated by the filing of a qui tam lawsuit filed by Shawn Pelletier, a former employee of Century Ambulance. Mr. Pelletier will collect more than $1.2 million in proceeds from the settlements.
“Ambulance companies must ensure that services billed to federal healthcare programs are medically necessary and reasonable,” said Chief Counsel Demske. “Billing Medicare and Medicaid for transports that amount to taxpayer-funded taxi services will not be tolerated.”
The United States was unable to reach settlement with one defendant – Liberty Ambulance. The United States intends to pursue claims against that defendant and plans to file a civil complaint in the near future. The United States alleges that Liberty knowingly submitted medically unnecessary claims for reimbursement in violation of the federal healthcare program requirements.
"Our office is committed to working with other law enforcement organizations to ensure that both federal employees and taxpayers are protected from unscrupulous organizations that seek to reap profits by defrauding government programs such as the Federal Employees Health Benefits Program," stated Patrick E. McFarland, Inspector General for the U.S. Office of Personnel Management. "We will continue to work to hold such entities accountable for their wrongdoing."
"The FBI is extremely grateful to have been part of this investigative team,” said FBI Special Agent in Charge Michelle S. Klimt. “This is a perfect example of when all agencies work together how our collaborative efforts lead to success.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Departments of Justice and Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
"This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program," said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees."
This case was investigated by Federal Bureau of Investigation, the Office of Personnel Management, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services Office of Counsel to the Inspector General, the U.S. Department of Health and Human Services Office of Inspector General, Office of Audit Services, the Florida Medicaid Fraud Control Unit, the Defense Health Agency Program Integrity Office, and Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
United States and State of New York Announce Start up of Croton Water Filtration Plant in Compliance with Mandates of Federal Consent DecreeRead the Press Release
Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Judith A. Enck, Regional Administrator, United States Environmental Protection Agency Region 2, and Eric T. Schneiderman, Attorney General for the State of New York, announced today that the City of New York, in compliance with the Consent Decree and Supplements entered in this action, began distribution of filtered drinking water from its Croton Water Filtration Plant. Through the Croton Water Filtration Plant, the City of New York will have the ability to deliver 290 million gallons of high-quality drinking water each day to residents of the City. If the City had failed to meet the May 17, 2015 deadline for commencement of operation of the Croton Water Filtration Plant, the Consent Decree provided for stipulated penalties in the amount of $65 million.
In 1997, the United States brought suit against New York City to enforce the filtration requirements for its Croton System. Soon thereafter, the State of New York and its Commissioner of Health intervened in the suit as plaintiffs and are parties to the Consent Decree as supplemented. New York City is required to filter its Croton System under the Safe Drinking Water Act and the Surface Water Treatment Rule (SWTR), as well as the New York State Sanitary Code. Under the SWTR, the City was required to implement filtration for its Croton System by June 29, 1993. By stipulation with the State of New York, the City agreed to begin construction of a filtration plant by July 1, 1996. When the City failed to comply with the Stipulation, the United States filed its suit to compel filtration of the Croton System. The United States and the State of New York have vigorously enforced the terms of the Consent Decree, resulting in the City constructing the Croton Filtration Plant and paying $5,064,000 in penalties to date for missed deadlines associated with the delays in the project schedule. Under the Consent Decree, the City was also required to conduct interim measures including monitoring the quality and safety of the Croton System and implementing watershed protection measures.
Filtering drinking water obtained from surface water sources, such as the Croton System, reduces the risk of waterborne disease. These sources are susceptible to potential contamination from disease causing organisms such as Giardia and Cryptosporidium which can easily get into surface water supplies from human activity and animals. Filtration, coupled with disinfection and source water protection, is the best means of ensuring the safety of drinking water from the City’s Croton water supply.
“The United States brought this action in 1997 to ensure that New York City residents are provided with safe drinking water from the Croton Water Supply. Through many years of litigation, enforcement and negotiation, this office has persevered to ensure that construction of the filtration plant was completed and that filtered water will be available to New York City residents from the Croton System. I am pleased that our enforcement efforts have come to fruition and the residents of New York City will have a high quality filtered drinking water supply,” said Acting United States Attorney Currie.
“New Yorkers deserve to have the highest quality water possible," said EPA Regional Administrator Judith A. Enck. "The EPA required New York City to build a filtration plant to protect people from Giardia and Cyrptosporidium, both of which can cause serious illness. The Croton Water Filtration plant will provide millions with a safe source of drinking water, which is essential to protecting public health.”
“Water from the Croton Watershed system has been critical to New Yorkers for more than a century, since the Croton Aqueduct began operating in 1842. Bringing this water filtration plant on-line is a major step forward in ensuring that drinking water from the watershed remains safe and available to New York City residents. It is also a critically-needed investment in New York's public infrastructure. My office will continue to work with our federal, state, and local partners to ensure that the city's compliance with the remaining obligations of the consent decree,” said New York Attorney General Schneiderman.
The action is entitled United States and State of New York v. City of New York and New York City Department of Environmental Protection, Civil Action No. 97-CV-2154 (Gershon, J.) (Gold, M.J.). The action was litigated and the Consent Decree was negotiated by Assistant United States Attorney Deborah B. Zwany, Elizabeth Yu, U. S. Department of Justice, Environment and Natural Resources Division, and Andrew Gershon, New York State Attorney General’s Office, with assistance from EPA Region 2, Phyllis Feinmark, Regional Counsel’s Office, Doughlas McKenna, Chief of the Water Compliance Branch, and Nicole Kraft, Chief of the Ground Water Compliance Section, and the New York State Department of Health’s Bureau of Water Supply Protection.
Union County, New Jersey, Man Federally Charged with Robbing One Bank and Attempting to Rob Another While Using A FirearmRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man who allegedly robbed one bank and attempted to rob another at gunpoint has been charged federally, U.S. Attorney Paul J. Fishman announced.
Marlon Peek, 39, of Plainfield, New Jersey, is charged by complaint with one count of bank robbery, one count of attempted bank robbery, and one count of using and brandishing a firearm during the commission of the attempted bank robbery. Peek was arrested by the Linden Police Department on May 6, 2015. The U.S. Attorney’s Office is adopting the case for federal prosecution. Peek will have his initial court appearance in Newark federal court at a date to be determined.
According to the complaint:
On April 21, 2015, Peek allegedly robbed a PNC Bank in South Plainfield, New Jersey, of cash, including certain bills whose serial numbers had been recorded in advance (bait money). Later that day, at an address associated with Peek, law enforcement observed a vehicle registered to Peek. The defendant exited his vehicle and fled on foot. Law enforcement later found some of the bait money from the PNC Bank robbery as well as Peek’s driver’s license, among other items, in the vehicle.
On May 6, 2015, Peek allegedly attempted to rob a Bank of America in Linden, New Jersey. He allegedly entered the Bank of America, pointed a gun directly at a teller, and demanded money. Due in part to the Bank of America branch having bullet-proof glass in front of the teller station, the teller refused to turn over money to Peek.
Peek fled the bank and allegedly attempted to carjack three cars, all at gunpoint, on or near Route 1 in Linden. After the three unsuccessful attempts to commandeer a car, Peek took a hostage and held a gun to the hostage’s head. Officers of the Linden Police Department, who had by then arrived on the scene, ordered Peek to drop his gun. Peek complied and was taken into custody. A loaded firearm was recovered.
The bank robbery and attempted bank robbery charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of brandishing a weapon during the attempted robbery of Bank of America carries a mandatory seven-year sentence to be served consecutively with any other sentence.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the arrest and charges. He also thanked the Linden, Edison, South Plainfield, Middlesex, Dunellen, and Springfield Police Departments for their excellent work in this case.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and the allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
peek_marlon_complaint.pdf (341.28 KB)
U.S. Attorney Charges Former Police Dispatcher for Unauthorized Use of Crime ComputersRead the Press Release
BIRMINGHAM -- Federal prosecutors today charged a former police dispatcher with unauthorized use of law enforcement computers for non-law enforcement purposes, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell, and Alabama Secretary of Law Enforcement Spencer Collier.
The U.S. Attorney's Office charged DERRICK R. THOMAS, 38, of Warrior, with one count of unauthorized access to a protected computer to query law enforcement databases between 2011 and 2014 while he worked as a dispatcher for the Gardendale Police Department. Thomas queried the Alabama Criminal Justice Information Center and the National Crime Information Center on at least four individuals for other than law enforcement purposes at the request of someone who was not a law enforcement officer, according to the information filed in U.S. District Court.
Thomas has entered a plea agreement with the government acknowledging the actions charged and stating his intention to plead guilty. The plea agreement also was filed in court today.
The entity formerly known as ACJIC operates a data center to provide information to Alabama law enforcement and the criminal justice community. ACJIC, which operates in Montgomery, connects via a secure connection to criminal justice information systems for all 50 states, as well as NCIC. NCIC is an electronic clearinghouse of crime data maintained by the FBI and used by criminal justice agencies nationwide.
According to Thomas' plea agreement, he logged into the ACJIC/NCIC system on multiple occasions in order to gather and provide information to an acquaintance who was not a law enforcement officer. By doing so, Thomas engaged in unauthorized public dissemination of personal information. Thomas knew he was authorized to use the ACJIC/NCIC system only for law enforcement purposes and that accessing it for other purposes was a crime, according to the plea agreement.
The maximum penalty for unauthorized access to a protected computer is five years in prison and a $250,000 fine.
The Secret Service investigated the case with the assistance of the Alabama Law Enforcement Agency, which Assistant U.S. Attorney Erica Williamson Barnes is prosecuting.
Two Men Who Breached Photobucket.com Indicted and Arrested on Conspiracy and Fraud Related ChargesRead the Press Release
Two men have been arrested after breaching the computer services of Colorado based Photobucket, a company that operates an image and video hosting website, announced U.S. Attorney John Walsh for the District of Colorado and Special Agent in Charge Thomas Ravenelle for the Denver Division of the Federal Bureau of Investigations (FBI). Brandon Bourret, 39, of Colorado Springs, Colorado and Athanasios Andrianakis, 26, of Sunnyvale, California, were arrested today without incident at their homes. Both made initial appearances today, where they were advised of their rights and the charges pending against them.
According to the indictment, beginning on July 12, 2012 and continuing through July 1, 2014, Bourret and Andrianakis knowingly conspired to commit acts and offenses against the United States, namely computer fraud and abuse, access device fraud, identification document fraud and wire fraud. The indictment further alleges that there was interdependence among the members of the conspiracy.
The purpose of the conspiracy was for the conspirators to enrich themselves by selling passwords and unauthorized access to private and password protected information, images and videos on the Internet and by selling private and password protected information, images and videos that the conspirators obtained from the Internet.
The conspirators developed, marketed and sold a software application called Photofucket, which allowed viewers to circumvent the privacy settings of the image and video hosting website at Photobucket.com and to access and copy users private and password protected information, images and videos without authorization. The conspirators used Photofucket to obtain guest passwords to access users’ password protected albums. They also transferred, or caused to be transferred, guest passwords to others who paid to use the Photofucket application.
“It is not safe to hide behind your computer, breach corporate servers and line your own pockets by victimizing those who have a right to protected privacy on the internet,” said U.S. Attorney Walsh. “The U.S. Attorney’s Office is keenly focused on prosecuting those people for their theft -- and for the wanton harm they do to innocent internet users.”
“Unauthorized access into a secure computer system is a serious federal crime,” said Special Agent in Charge Ravenelle. “The arrest of Brandon Bourret and his co-conspirator reflects the FBI’s commitment to investigate those who undertake activities such as this with the intent to harm a company and its customers.”
The investigation regarding the breach and who’s albums were accessed is ongoing. For those who want to follow the status of this case, visit http://www.justice.gov/largecases – and then select “Photobucket.” In addition, the U.S. Attorney’s Office and the FBI commend Photobucket for their cooperation from the inception of the investigation – and thanked them for their continued assistance as both the investigation and prosecution moves forward.
Bourret and Andrianakis both face one count of conspiracy, which carries a penalty of not more than five years in federal prison and up to a $250,000 fine. They each face one count of computer fraud, aid and abet, which also carries a penalty of not more than five years in federal prison and up to a $250,000 fine. Finally, they each face two counts of access device fraud, which carries a penalty of not more than ten years in federal prison, and up to a $250,000 fine, per count.
This case is being prosecuted by Assistant U.S. Attorney David Tonini.
The charges contained in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
Two Men Who Breached Photobucket.com Indicted and Arrested on Conspiracy and Fraud Related ChargesRead the Press Release
CLICK HERE FOR A COPY OF THE INDICTMENT
Defendants sold access to people’s private photographs and videos by creating an applications known as “Photofucket”
DENVER – Two men have been arrested after breaching the computer services of Colorado based Photobucket, a company that operates an image and video hosting website (http://www.photobucket.com), U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Brandon Bourret, age 39, of Colorado Springs, and Athanasios Andrianakis, age 26, of Sunnyvale, California, were arrested today without incident at their homes. Both made initial appearances today, where they were advised of their rights and the charges pending against them.
According to the indictment, beginning on July 12, 2012 and continuing through July 1, 2014, Bourret and Andrianakis knowingly conspired to commit acts and offenses against the United States, namely computer fraud and abuse, access device fraud, identification document fraud and wire fraud. The indictment further alleges that there was interdependence among the members of the conspiracy.
The purpose of the conspiracy was for the conspirators to enrich themselves by selling passwords and unauthorized access to private and password protected information, images, and videos on the Internet and by selling private and password protected information, images and videos that the conspirators obtained from the Internet.
The conspirators developed, marketed and sold a software application called Photofucket, which allowed viewers to circumvent the privacy settings of the image and video hosting website at Photobucket.com and to access and copy users private and password protected information, images and videos without authorization. The conspirators used Photofucket to obtain guest passwords to access users’ password protected albums. They also transferred, or caused to be transferred, guest passwords to others who paid to use the Photofucket application.
“It is not safe to hide behind your computer, breach corporate servers, and line your own pockets by victimizing those who have a right to protected privacy on the internet,” said U.S. Attorney John Walsh. “The U.S. Attorney’s Office is keenly focused on prosecuting those people for their theft -- and for the wanton harm they do to innocent internet users.”
“Unauthorized access into a secure computer system is a serious federal crime,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “The arrest of Brandon Bourret and his co-conspirator reflects the FBI’s commitment to investigate those who undertake activities such as this with the intent to harm a company and its customers.”
The investigation regarding the breach and who’s albums were accessed is ongoing. For those who want to follow the status of this case visit http://www.justice.gov/largecases -- and then select “Photobucket”. In addition, the U.S. Attorney’s Office and the FBI commend Photobucket for their cooperation from the inception of the investigation – and thanks them for their continued assistance as both the investigation and prosecution moves forward.
Bourret and Andrianakis both face one count of conspiracy, which carries a penalty of not more than 5 years in federal prison, and up to a $250,000 fine. They each face one count of computer fraud, aid and abet, which also carries a penalty of not more than 5 years in federal prison, and up to a $250,000 fine. Finally, the each face two counts of access device fraud, which carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine, per count.
This case is being prosecuted by Assistant U.S. Attorney David Tonini.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Twins Found Guilty of Attacking Man in Bias-Related Crime in Northwest WashingtonRead the Press Release
WASHINGTON – Christopher Lucas and Christina Lucas, 21-year-old twins from Washington, D.C., were found guilty by a jury today of the felony offense of aggravated assault while armed, with a bias enhancement, for attacking a man in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
The verdicts followed a trial in the Superior Court of the District of Columbia. In addition to the aggravated assault charge, Christopher Lucas was found guilty of a charge of simple assault involving a second victim. The Honorable Yvonne M. Williams will sentence them at a date to be determined. Both defendants are detained pending sentencing. Because of the bias enhancement, the defendants could face additional time in prison for the crime.
According to the government’s evidence, early on Oct. 19, 2013, the male victim and two women were among those attending a party at a rooming house in the 2800 block of Sherman Avenue NW. Just before 12:30 a.m., the three left the party and walked to street corner to hail a cab. While they were trying to hail a cab, the Lucases and a group of men approached them and attacked the man, using homophobic slurs. One of the women was also punched by Christopher Lucas. The male victim was knocked over on the sidewalk and punched and stomped multiple times by the Lucases and others in the group. Christina Lucas had an object in her hand and used it to cut the victim’s face while he was lying on the sidewalk.
The Metropolitan Police Department (MPD) was called, and the defendants fled. The victim was treated at a hospital for facial fractures and lacerations. The victim has a permanent scar beneath his eye as a result of the cut. Both defendants were later arrested pursuant to arrest warrants. The object in Christina Lucas’s hand during the assault was never recovered.
In announcing the verdicts, Acting U.S. Attorney Cohen commended the work of the officers, detectives and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Nicole McGhee and Tiffany Fogle; Litigation Technology Specialists Paul Howell, Aneela Bhatia, and Anisha Bhatia; Victim/Witness Security Specialist David Foster, and Victim/Witness Advocate Diana Lim. Finally, he praised the work of Assistant U.S. Attorneys Veronica Jennings, who investigated and prosecuted the case, and Kapil Longani, who prosecuted the case.
Tampa Woman Sentenced to Federal Prison for Engaging in Stolen Identity Refund FraudRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Rosa Moultry Martin to five years in federal prison for mail fraud and aggravated identity theft. The Court also ordered Martin to forfeit $153,219 and two luxury cars, which are traceable to proceeds of the offense. She pleaded guilty on December 2, 2014.
According to court documents, in May 2012, postal employees at the New Tampa Post Office reported to law enforcement that numerous pieces of mail bearing the label “Turbo Tax,” and addressed to at least 10 different individuals, were scheduled to be delivered to Martin’s residence in Tampa. On June 7, 2012, investigators made a controlled delivery of two of these envelopes to Martin’s curbside mailbox. The envelopes, which contained prepaid debit cards, were addressed to J.H. and D.H. Neither of these individuals resided at the address.
Investigators learned that the prepaid debit cards issued to J.H. and D.H. were each loaded with a fraudulently obtained tax refund in the amount of $9,919. Further investigation revealed that a debit card was opened in the name of D.H. using his actual date of birth and social security number. This debit card was used at an ATM in Zephyrhills on June 7, 2012, to make three simultaneous cash withdrawals totaling $1,000. These successive transactions were captured on the ATM’s video and show Martin making the withdrawals. She also made additional withdrawals using another reloadable debit card containing a fraudulently obtained tax refund.
On June 26, 2012, a search warrant was executed at Martin’s home. Evidence seized during the search included a laptop and desktop computer, more than 50 prepaid debit cards issued in other names, print-outs from a genealogy website containing personally identifiable information (PII), and numerous ledgers containing PII, account information, passwords, and email addresses. The search also lead to the recovery of receipts for money orders that had been purchased with fraudulently obtained tax refunds and used by Martin to pay for her rent and other items. A subsequent search of Martin, her husband, and her vehicle revealed several items, including an iPad, a tablet, cell phones, and approximately $25,000 worth of jewelry. Forensic examinations of the computers and tablets revealed Internet search history for tax-related websites and the PII of at least 20 individuals.
In total, investigators have determined that Martin possessed and used the PII of approximately 76 victims, without their permission, to file fraudulent tax returns and/or receive refunds resulting from the filing of fraudulent tax returns. Investigators determined that Martin, working alone and with others, made false claims for refunds totaling approximately $641,754 and received approximately $153,219 to which she was not entitled.
This case was investigated by the United States Postal Inspection Service, the Tampa Police Department, and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Tampa Man Sentenced to Seven Years for Credit Card Fraud and Identity TheftRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Ricardo Romero-Mesa (44, Tampa) to seven years in federal prison for conspiracy to commit credit card fraud and aggravated identity theft. The Court also ordered him to forfeit $13,423.79, which are the proceeds traceable to his criminal conduct. He pleaded guilty on January 15, 2015.
According to court documents, in early 2014, investigators identified Romero-Mesa and Lazaro Hernandez-Cabrales as co-leaders of a credit card fraud ring. Together, and with others, they used numerous stolen credit and debit card account numbers to generate counterfeit credit cards. They used the credit cards to purchase hundreds of reloadable Visa gift cards. The gift cards were then used to purchase items at home improvement stores, which were later returned in exchange for cash.
Investigators determined that the conspirators initially purchased the stolen account numbers, many from Navy Federal Credit Union and Armed Forces Bank, from an online website based in Eastern Europe. Later, Hernandez-Cabrales stole account numbers by obtaining keys to gas pumps and installing skimmers.
On February 17, 2014, during a search of the residence shared by Romero-Mesa and Hernandez-Cabrales, investigators seized more than 200 gift cards, credit cards, and hotel room keys, some of which had been re-encoded with other credit and debit card account numbers. Agents also recovered computers, receipts from merchandise returns, high-end purses and clothing, and receipts for the purchase of wire transfers from the United States to Ukraine. Further investigation revealed that Hernandez-Cabrales had wired more than $23,500 to recipients in Ukraine and Russia to purchase at least 800 stolen account numbers from a website that offers them for sale.
In total, investigators recovered more than 1,000 stolen credit card numbers issued by at least 15 different financial institutions.
Lazaro Hernandez-Cabrales previously pleaded guilty for his role in this case. On February 10, 2015, he was sentenced to five years and ten months in federal prison.
This case was investigated by the Tampa Police Department, the Florida Department of Law Enforcement, and the United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Stephen M. Howells II Enters Guilty Pleas to All 21 Counts of Federal IndictmentRead the Press Release
SYRACUSE, NEW YORK –Stephen M. Howells II, age 39, of Hermon, NY pled guilty today to all 21 counts of a federal indictment charging him with child exploitation offenses, according to United States Attorney Richard S. Hartunian and Andrew T. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division. Howells will be sentenced by U.S. District Judge Glenn T. Suddaby on Friday, September 18, 2015 at 11:00 am in Syracuse, New York. A trial is scheduled for co-defendant Nicole Vaisey on June 22, 2015 before Judge Suddaby in Syracuse.
Howells pled guilty to conspiracy to produce child pornography, producing child pornography (Counts 2-10), and possessing child pornography. The conspiracy count (Count 1) and fifteen additional counts relate to Howells’ sexual abuse of six separate children (ranging in age from 5 to 11) and his filming of that abuse on sixteen dates between December 2012 and August 2014. Howells is charged alone in six of those counts (Counts 11-16); Vaisey is also charged with conspiracy and nine of the production counts (Counts 2-10). Howells also pled guilty to five counts of possession of child pornography, (Counts 17-21), separate and apart from the children and images charged in the first 16 counts of the superseding indictment. These counts relate to numerous image and video files Howells collected from the Internet and downloaded to each of five separate hard drives from computers that were recovered from his residence. These images and video files also involve prepubescent minors and minors under the age of 12.
Howells’ admissions as part of his guilty plea included the following:
From September 2013 to August 2014, Howells conspired with Vaisey to produce child pornography. Howells obtained drugs through his work as a registered nurse and he used the drugs to sedate the child victims. On sixteen specified dates between December 2012 and August 2014, Howells sexually abused six separate children, ranging in age from 5 to 11, sometimes with Vaisey also doing so, as Howells or Vaisey filmed that abuse. Howells and Vaisey planned to abduct children to engage in sexually explicit conduct. They kidnapped two Amish children from a farm stand in August of 2014 to use them to engage in sexually explicit conduct and produce images and videos of that conduct. On August 15, 2014, Howells possessed five separate computer hard drives containing numerous image and video files of actual young children engaged in sexually explicit conduct.
Howells faces at least 15 years imprisonment, and up to 30 years on the conspiracy charge, as well as on each of the substantive exploitation counts. He also faces a maximum sentence of 20 years on each of the possession counts. The Court has the discretion to run all of these sentences concurrently or consecutively to one another. Howells will also be required to serve a term of supervised release of a minimum of 5 years and up to life to follow any term of incarceration. In addition, conviction on any count of the superseding indictment will require Howells to register as a sex offender.
"The criminal conduct committed by Stephen Howells is beyond comprehension," stated U.S. Attorney Richard S. Hartunian. "Our hearts go out to all the young victims who endured his unspeakable acts. We will continue to do everything in our power to see that he will never abuse another innocent child. I commend the community, the St. Lawrence County Sheriff’s Office, the New York State Police, and the Federal Bureau of Investigation for working tirelessly to bring him to justice."
"The crimes committed by Howells are some of the most horrific imaginable," said Special Agent in Charge Andrew W. Vale. "He carefully planned and carried out these abuses and exploitations, and today's guilty plea is the result of a vigorous investigation to locate Howells and uncover the full extent of his criminal actions. The FBI commends the work and dedication of its law enforcement partners and the U.S. Attorney's Office. It is because of this essential collaboration that the victims were recovered and that Howells is receiving justice for his crimes."
This case was investigated by the St. Lawrence County Sheriff’s Office and the Federal Bureau of Investigation with substantial assistance from the New York State Police. It is being prosecuted by Assistant United States Attorneys Lisa Fletcher and Tamara Thomson.
The case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
St. Louis Man Charged with Armed Robberies of Auto Parts Stores in Collinsville and BellevilleRead the Press Release
Michael D. Dean, 24, of St. Louis, MO was arraigned Friday on a four count Indictment charging him with two counts of Interference with Commerce by Robbery, violations of the Hobbs Act, and two counts of Carrying and Using a Firearm during a Crime of Violence.
The charges stem from two armed robberies of Advanced Auto Parts stores in Collinsville and Belleville in April 2015. If convicted of the Hobbs Act charges, Dean faces a term in federal prison of not more than twenty years, a fine of up to $250,000, and a term of supervised release of not more than three years on each offense. If convicted of both counts of Carrying and Using a Firearm during a Crime of Violence, Dean faces a minimum term of imprisonment of thirty-two years to run consecutive to, or in addition to, any term of imprisonment on the Hobbs Act charges.
The case is being investigated by the St. Clair County Sheriff’s Department, the Collinsville Police Department, and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Laura Reppert.
St. James Resident Charged with Selling and Possessing Migratory BirdsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROYLEY A. FOLSE, JR., age 69, a resident of St. James Parish, was charged today in an eight-count Indictment with selling and possessing migratory game birds.
According to the Indictment, from June 2010 to December 2011, FOSLE illegally bartered and sold for cash four yellow-crowned night herons and sixty-two white ibis, which are migratory birds protected under the Migratory Bird Treaty Act (MBTA). The Indictment also charges that on April 2, 2013, FOLSE possessed a Barn Owl and a Red-Tailed Hawk.
If convicted for the sale of migratory birds, FOLSE faces a maximum term of imprisonment of two years, followed by one year of supervised release, and a maximum fine of $2,000. A conviction for the possession of the Barn Owl and the Red-Tailed Hawk carries a maximum term of imprisonment of six months, followed by one year of supervised release, and a maximum fine of $15,000.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Louisiana Department of Wildlife and Fisheries and the United States Fish and Wildlife Service in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Royley Folse, Jr. Indictment (1.92 MB)
School Construction Authority General Contractor and His Employees Convicted of Multiple Crimes for Participating in Long-Running Scheme to Deprive Workers of the Prevailing WageRead the Press Release
Earlier today, following four weeks of trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Muzaffar Nadeem, the owner of SM&B Construction Co., Inc. (SM&B), and co-defendants Zainul Syed, Afzaal Chaudry, and Irfan Muzaffar for their participation in a scheme to pay SM&B’s workers a fraction of the prevailing wage on projects funded by the New York City School Construction Authority (SCA), as SM&B was legally and contractually required to do. Specifically, Nadeem was convicted on charges of mail and wire fraud, structuring financial transactions, federal programs bribery, making illegal cash payments to a union official, money laundering, unlawful monetary transactions over $10,000, subscribing to false tax returns, and multiple related conspiracy charges. Syed, Chaudry, and Muzaffar were convicted of various crimes for their participation in the scheme. When sentenced by United States District Judge Brian M. Cogan, Nadeem, Syed, and Chaudry face sentences of up to 20 years in prison, and Muzaffar faces a sentence of up to five years in prison.
The verdicts were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Shantelle P. Kitchen, Special-Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York; and Special Agent-in-Charge Cheryl Garcia, New York Regional Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
“The message to those who win and perform public works contracts in New York City and New York State is loud and clear – if you want to reap the benefits that come from being awarded those contracts, you will be held to following the rules,” stated Acting United States Attorney Currie. “You must pay your workers the wages to which they are entitled, rather than rig the system with bribes and then scheme to hide your income from the government. Those who do not follow the rules will be vigorously prosecuted.”
Mr. Currie expressed his grateful appreciation to the Office of the New York State Attorney General and that office’s Organized Crime Task Force, the New York City Department of Investigation, the New York City School Construction Authority, Office of Inspector General, the New York City Police Department, and the New York County District Attorney’s Office for their assistance in the investigation and prosecution of the defendants.
Nadeem owned and operated SM&B, which received over $36 million in fraud-induced payments from the SCA since 2007. Chaudry and Syed worked as a foreman and office manager, respectively, at SM&B. Muzaffar is Nadeem’s son, and also worked in SM&B’s office.
Both New York State Labor Law and the terms of its contracts with the SCA required SM&B to pay workers on SCA-funded projects a prevailing wage rate, which was set by the New York City Comptroller. Instead, SM&B paid workers, including bricklayers and laborers, cash wages on its projects at rates that were a small fraction of the prevailing wage. Nadeem, Chaudry, and Syed then falsely certified to the SCA that the workers had been paid the prevailing wage, thereby committing mail fraud, wire fraud, and conspiracy to commit those crimes.
To conceal the charged fraud scheme, and to obtain cash to pay the illegally low wages to workers, Nadeem, Syed, and Muzaffar engaged in illegal structuring, cashing multiple checks, each for less than $10,000 on a single day, for a total amount of more than $10,000, in an effort to avoid the required filing of Currency Transaction Reports (CTRs). Since July 2006, Nadeem and others acting his direction wrote more than $4.1 million in structured checks on SM&B’s account.
Nadeem and Syed also arranged for the payment of $30,000 in cash bribes to an undercover SCA Inspector, and over $7,000 in cash bribes to a shop steward for the Local 1 Bricklayers Union, Russell Argila. Argila has previously pleaded guilty to accepting those bribes. Nadeem also laundered approximately $7 million in proceeds of the charged fraud scheme by funneling it through shell companies and sent millions of dollars through these shell companies to Pakistan to invest in an amusement park and resort complex named “Wayzgoose Park.”
Finally, Nadeem filed false tax returns for SM&B and himself that fraudulently inflated SM&B’s business expenses and reduced its profits by more than $4 million.
At sentencing, the defendants also face forfeiture of substantial assets and cash.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Lan Nguyen, Gina M. Parlovecchio, and Nathan Reilly are in charge of the prosecution. Assistant United States Attorney Claire Kedeshian is handling the forfeiture aspects of the case.
The Defendants:
MUZAFFAR NADEEM
Age: 59
Brooklyn, New York
ZAINUL SYED
Age: 40
Brooklyn, New York
AFZAAL CHAUDRY
Age: 48
Brooklyn, New York
IRFAN MUZAFFAR
Age: 31
Brooklyn, New York
E.D.N.Y. Docket No. 13-CR-424 (BMC)
Sacramento Man Sentenced to Two Years in Prison for Marriage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Sippy Lal, 62, of Sacramento, was sentenced to two years in prison today for conspiring to induce aliens to illegally enter the United States for private financial gain, United States Attorney Benjamin B. Wagner announced.
According to court documents, from at least October 24, 2006, until January 10, 2012, Lal and co-defendants Mamta Sharma, 37, and Rani Singh-Lal, 30, both of Sacramento, were involved in an elaborate immigration-fraud scheme involving foreign nationals from India who paid to enter into sham engagements or marriages with locally recruited U.S. citizens in an effort to legalize their immigration status. The citizens recruited by Lal were paid thousands of dollars to fly to India, meet and take pictures with a purported spouse, and sometimes enter into actual marriages (albeit often using aliases). Thereafter, fraudulent petitions were filed with the United States seeking visas allowing the Indian citizens to enter and reside within the United States. On at least one occasion, after an alien entered the country on a fraudulent fiancé visa procured through the scheme, Lal paid a U.S. citizen to further participate by entering into a sham marriage with the alien in Sacramento.
Sharma used various aliases to pose as a U.S. citizen in five different petitions filed since 2008, despite the fact that she is not a U.S. citizen and despite the fact that she was married to Lal throughout that time period. Similarly, Singh-Lal posed as the petitioner in three different petitions, all filed with slight variations of her true name. According to court documents, over 25 fraudulent petitions were submitted to immigration authorities as a result of the conspiracy, and at least nine Indian nationals entered the United States and were, at least for some period of time, able to avoid detection.
“At U.S. Citizenship and Immigration Services, a team of three fraud officers looked into the allegations, and developed information to provide to Immigration and Customs Enforcement that helped to get an admission of guilt,” said District Director Mari Carmen Jordan.
“Marriage fraud is not a storyline for a Hollywood movie, it’s a federal crime, and unfortunately one that is all too common,” Tatum King, acting special agent in charge for ICE Homeland Security Investigations (HSI) in northern California. “As this case makes clear, HSI will aggressively target those who conspire to corrupt the integrity of America’s legal immigration system for personal profit, putting our nation’s security at risk in the process.”
Sharma and Singh-Lal previously pleaded guilty and were sentenced to of 24 months and 27 months in prison, respectively.
This case was the product of an investigation U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Citizenship and Immigration Services – Fraud Detection and National Security Unit, and the California Department of Justice – Bureau of Investigation and Intelligence. Assistant United States Attorneys Michele Beckwith and Philip Ferrari prosecuted the case.
Ruston, Louisiana, Housing Authority Agrees to Pay $175,000 and Stop Filling Vacancies Based on Race to Settle Justice Department LawsuitRead the Press Release
The Justice Department announced today that the Housing Authority of the city of Ruston, Louisiana, has agreed to pay $175,000 and adopt comprehensive new policies to settle a race discrimination lawsuit filed by the department. The settlement must still be approved by U.S. District Court Judge Robert G. James of the Western District of Louisiana.
The department’s lawsuit, filed in September 2013, alleged that the Ruston Housing Authority (RHA) had long segregated the 300 apartments in its five public housing developments by assigning vacancies to applicants based on their race, rather than on their place on the waiting list. Specifically, the department alleged that the RHA disproportionately assigned white applicants to its two developments that were located in the predominantly white neighborhoods of Ruston—Louise Homes and Maryland Plaza Homes. At the same time, the department alleged, RHA primarily assigned African-American applicants to the complexes located in predominantly African-American neighborhoods—Eastwood Homes, Greenwood Homes and Truman Homes. When it originally began developing housing in the 1950’s and early 1960’s, the RHA explicitly reserved Louise Homes and Maryland Plaza for “white” persons, while reserving Greenwood and Truman for what it termed “colored” persons.
Although the RHA no longer maintained this de jure system, the department alleged that it had continued to segregate its complexes in practice. During the litigation, the former Ruston Housing Authority project manager from 2003 to 2013 admitted in her sworn deposition testimony that on numerous occasions she skipped over earlier applying African-American applicants in order to fill vacancies at Louise Drive Homes with later applying white applicants. She also testified that on multiple occasions she did not offer eligible white applicants available apartments in the nearly all-black Eastwood Homes, Greenwood Homes and Truman Homes, but instead offered those units to later-applying African American applicants.
“People who seek public housing, like all other home seekers, have the right to access housing free from racial discrimination," said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “It is particularly distressing that, almost 50 years after the passage of the Fair Housing Act, this public housing authority was still filling vacancies based on the color of an applicant’s skin, rather than based on when he or she had applied. We are pleased that the Ruston Housing Authority has agreed to dismantle this segregated system and compensate its victims.”
“We have zero tolerance for housing providers that discriminate against individuals based on race,” said U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. “Today’s settlement is an example of our continuing effort to end discrimination in such a vital need, housing. The U.S. Attorney’s Office is committed to addressing unlawful discriminatory practices and enforcing anti-discrimination laws that protect the rights of all people."
“Assigning persons housing based on the color of their skin not only robs them of the basic dignity everyone seeking housing should be afforded, it violates the Fair Housing Act,” said Assistant Secretary Gustavo Velasquez of the Department of Housing and Urban Development’s Fair Housing and Equal Opportunity Office. “HUD is committed to working with the Justice Department to take action against housing providers whose policies and practices are discriminatory.”
Upon court approval, the settlement, which is in the form of a consent decree, will require the RHA to implement nondiscriminatory policies and procedures to ensure compliance with the Fair Housing Act and to ensure that RHA housing units are made available for rent based on an applicant’s position on its waiting list, irrespective of race. The decree also requires that if RHA builds or acquires additional units, they are to be located in areas that do not further racial segregation. In addition, RHA employees who are responsible for making housing decisions will receive training on the new nondiscriminatory policies and procedures, the consent decree and the Fair Housing Act.
In addition, the RHA will pay $175,000 to compensate 19 individuals who suffered damages as a result of the RHA passing them over for available housing units because of their race. Additionally, for those 19 victims of the RHA’s discriminatory actions identified in the consent order, the RHA will allow those who are current tenants to request a transfer to another complex on a priority basis. It will also permit those identified individuals who are prior applicants and former tenants to reapply and, upon approval of their applications, give them priority for a unit at a complex of their choice.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the division’s Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Ruston Housing Authority agrees to pay $175,000 and stop assigning vacancies based on race to settle Justice Department lawsuitRead the Press Release
WASHINGTON – The Justice Department announced today that the Housing Authority of the city of Ruston, La., has agreed to pay $175,000 and adopt comprehensive new policies to settle a race discrimination lawsuit filed by the department. The settlement must still be approved by U.S. District Judge Robert G. James of the Western District of Louisiana.
The department’s lawsuit, filed in September 2013, alleged that the Ruston Housing Authority (RHA) had long segregated the 300 apartments in its five public housing developments by assigning vacancies to applicants based on their race, rather than on their place on the waiting list. Specifically, the department alleged that the RHA disproportionately assigned white applicants to its two developments that were located in the predominantly white neighborhoods of Ruston—Louise Homes and Maryland Plaza Homes. At the same time, the department alleged, RHA primarily assigned African-American applicants to the complexes located in predominantly African-American neighborhoods—Eastwood Homes, Greenwood Homes and Truman Homes. When it originally began developing housing in the 1950s and early 1960s, the RHA explicitly reserved Louise Homes and Maryland Plaza for “white” persons, while reserving Greenwood and Truman for what it termed “colored” persons.
Although the RHA no longer maintained this de jure system, the department alleged that it had continued to segregate its complexes in practice. During the litigation, the former Ruston Housing Authority project manager from 2003 to 2013 admitted in her sworn deposition testimony that on numerous occasions she skipped over earlier applying African-American applicants in order to fill vacancies at Louise Drive Homes with later applying white applicants. She also testified that on multiple occasions she did not offer eligible white applicants available apartments in the nearly all-black Eastwood Homes, Greenwood Homes and Truman Homes, but instead offered those units to later-applying African American applicants.
“People who seek public housing, like all other home seekers, have the right to access housing free from racial discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “It is particularly distressing that, almost 50 years after the passage of the Fair Housing Act, this public housing authority was still filling vacancies based on the color of an applicant’s skin, rather than based on when he or she had applied. We are pleased that the Ruston Housing Authority has agreed to dismantle this segregated system and compensate its victims.”
“We have zero tolerance for housing providers that discriminate against individuals based on race,” said U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. “Today’s settlement is an example of our continuing effort to end discrimination in such a vital need, housing. The U.S. Attorney’s Office is committed to addressing unlawful discriminatory practices and enforcing anti-discrimination laws that protect the rights of all people.”
“Assigning persons housing based on the color of their skin not only robs them of the basic dignity everyone seeking housing should be afforded, it violates the Fair Housing Act,” said Assistant Secretary Gustavo Velasquez of the Department of Housing and Urban Development’s Fair Housing and Equal Opportunity Office. “HUD is committed to working with the Justice Department to take action against housing providers whose policies and practices are discriminatory.”
Upon court approval, the settlement, which is in the form of a consent decree, will require the RHA to implement nondiscriminatory policies and procedures to ensure compliance with the Fair Housing Act and to ensure that RHA housing units are made available for rent based on an applicant’s position on its waiting list, irrespective of race. The decree also requires that if RHA builds or acquires additional units, they are to be located in areas that do not further racial segregation. In addition, RHA employees who are responsible for making housing decisions will receive training on the new nondiscriminatory policies and procedures, the consent decree and the Fair Housing Act.
Read the Ruston Housing Authority consent order here (4.87 MB)
In addition, the RHA will pay $175,000 to compensate 19 individuals who suffered damages as a result of the RHA passing them over for available housing units because of their race. Additionally, for those 19 victims of the RHA’s discriminatory actions identified in the consent order, the RHA will allow those who are current tenants to request a transfer to another complex on a priority basis. It will also permit those identified individuals who are prior applicants and former tenants to reapply and, upon approval of their applications, give them priority for a unit at a complex of their choice.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the division’s Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Rochester Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Luis Guzman, 26, of Rochester, NY, pleaded guilty to distribution of heroin and possession of a firearm in furtherance of a drug trafficking crime, before U.S. District Judge Charles J. Siragusa. The charges carry a maximum penalty of life in prison and a $1,000,000 fine.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated on December 18, 2012, the defendant sold heroin and a .22 caliber revolver to a confidential informant during a police investigation. Guzman admitted to selling heroin and cocaine on approximately 18 other occasions between November 30, 2012 and March 7, 2013.
The plea is the result of an investigation by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division and Investigators of the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for August 18, 2015 at 1:30 p.m. before Judge Siragusa.
Richmond Man Charged with Cashing U.S. Treasury Checks Using Stolen IdentitiesRead the Press Release
OAKLAND – A federal grand jury indicted Hugh Robinson with theft of public money and aggravated identity theft, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the indictment, on March 18, 2014, Robinson, a resident of Richmond, Calif., used the stolen identities of others to cash U.S. Treasury checks. The U.S. Treasury checks cashed by Robinson were payments of tax refunds and/or Social Security benefits to which Robinson was not entitled. In the indictment, Robinson was charged with three counts of theft of public funds, in violation of 18 U.S.C. § 641, and three counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Robinson has been arrested and is currently detained.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces 10 years in prison and a fine of $250,000 for each violation of 18 U.S.C. § 641 as well as 2 years in prison and a fine of $250,000 for each violation of 18 U.S.C. § 1028A. The 2-year terms for identity theft violations would be served consecutive to the underlying felony. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Repeat Bank Robber who Recruited and Trained Juveniles for Robberies Sentenced to 10 Years in PrisonRead the Press Release
A 31-year-old King County man was sentenced today in U.S. District Court in Seattle to ten years in prison for his involvement in more than a dozen bank robberies across the state, announced U.S. Attorney Annette L. Hayes. ROBERT CAL ADAMS, III, 31, was dubbed the “Rabid Fan Bandit” by the FBI because of the various hats with sports logos he wore in a string of bank robberies. The investigation revealed ADAMS’ involvement in a second string of bank robberies dubbed the “Buddy Bandit” bank robberies where juveniles were recruited, trained and sent in to rob tellers using notes almost identical to the one ADAMS used when solo. At sentencing U.S. District Judge John C. Coughenour stated that this sentence is imposed “with a heavy emphasis on the defendant’s decision to involve juveniles” in criminal activity.
“This defendant not only terrorized tellers across our state, he recruited and trained teen-agers to continue his crime spree,” said U.S. Attorney Annette L. Hayes. “His willingness to draw young people into these bank robberies makes this a particularly despicable crime”
ADAMS pleaded guilty to one count of conspiracy to commit bank robbery and ten individual counts of bank robbery. According to records filed in the case ADAMS robbed the following banks by handing a teller a threatening note demanding various amounts of cash: Chase Bank on Auburn Way in Auburn, Washington on March 3, 2014; Banner Bank on East Mission Street in Spokane, Washington on March 10, 2014; Chase Bank on 272nd Street in Covington, Washington on March 13, 2014; Chase Bank on 108th SE in Renton, Washington on March 19, 2014; Wells Fargo Bank on Gravelly Lake Dr. SW in Tacoma, Washington on March 24, 2014, and Chase Bank on S. 19th Street in Tacoma on March 31, 2014.
After the March 2014 bank robberies, ADAMS recruited others to his scheme and is convicted in connection with four other bank robberies where juveniles went into the banks with notes demanding money and threatening harm to the tellers. These robberies include the April 1, 2014 robbery of Chase Bank on Pacific Avenue in Tacoma; the April 7, 2014 robbery of US Bank on 176th St., Puyallup, Washington; the April 9, 2014 robberies of Alaska Federal Credit Union branches in Renton and Kent, Washington; the April 9, 2014 robbery of US Bank on Pacific Highway in Des Moines, Washington; the April 10, 2014 robbery of Wells Fargo on 72nd Street East, Tacoma; the April 11, 2014 robbery of BECU on Pacific Highway South, Kent, and the April 11, 2014 robbery of Bank of America on SW 336th St., Federal Way, Washington.
Finally, ADAMS teamed up with co-defendant Vincent G. Thompson to rob Chase Bank, on Canyon Road East in Puyallup on April 14, 2014. The final robbery in the spree was on April 21, 2014. Following the robbery of US Bank on Pacific Highway South in Des Moines, investigators were able to locate ADAMS at a nearby motel and arrest him.
“Bank robbers who commit their crimes across multiple jurisdictions might never face justice if not for the coordination of partners,” said Special Agent in Charge Frank Montoya, Jr., of the FBI’s Seattle Division. “The FBI’s Seattle Safe Streets Task Force and its partners throughout the state shared information at every step of this investigation, which allowed us to determine connections between bank robberies and identify everyone involved.”
The case was investigated by the FBI’s Seattle Safe Streets Task Force with assistance from multiple local police departments and the Washington State Department of Corrections.
The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County prosecutor specially designated to prosecute cases in federal court.
Previously Convicted Felon Sentenced for Gun PossessionRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway has sentenced Noel Alvarado Mathew (39, Puerto Rico) to four years and nine months in federal prison for being a felon in possession of a firearm. He pleaded guilty on January 28, 2015.
According to court documents, law enforcement officers obtained a cell phone video depicting Alvarado at a local gun range repeatedly firing a Glock pistol. At the time of the incident, Alvarado had previous felony convictions for robbery, gun, and drug violations. As a result, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Embry J. Kidd.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Pottawattamie County Resident Sentenced to 120 Months in Prison for Conspiracy to Distribute Methamphetamine and 60 Months in Prison for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
COUNCIL BLUFFS, IA - On May 7, 2015, Jeffrey Scott Gibler, a 50 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 120 months in prison for conspiring to distribute methamphetamine, and 60 months consecutive in prison for carrying and possessing a firearm in relation to and in furtherance of drug trafficking, announced United States Attorney Nicholas A. Klinefeldt. Gibler was also ordered to serve ten years of supervised release following imprisonment, and to pay $200 towards the Crime Victims Fun.
On January 1, 2015, the defendant pled guilty to these charges, which was the result of an investigation by law enforcement of drug trafficking that occurred in Pottawattamie County, Iowa. Beginning as early as March of 2013, continuing through October of 2013, Gibler conspired with others to distribute over approximately two kilograms of methamphetamine in the Southern District of Iowa. Gibler was also found to have carried and possessed a .22 caliber revolver in relation to the methamphetamine distribution.
The investigation was conducted by the Southwest Iowa Narcotics Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Pembroke Woman Pleads Guilty to Making False Statements to Obtain Social Security BenefitsRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Rosemary Peterson, 29, of Pembroke, Maine, pleaded guilty today in U.S. District Court in Bangor to making false statements to obtain Social Security Disability Insurance (“SSDI”) benefits. SSDI benefits are paid by the Social Security Administration (“SSA”) to people with disabilities.
According to court records, from April 2011 until November 2012, the defendant was designated as the representative payee for her boyfriend’s SSDI benefits. During this period of time, her boyfriend received over $17,000 in SSDI benefits. In November 2011, the defendant’s boyfriend was required to undergo a Continuing Disability Review to determine if he was still disabled. During this review, the defendant claimed that her boyfriend did not work outside the house and required someone to clean, bathe, dress and cook for him. In fact, the defendant had lived with her boyfriend for several years and was well aware that he did not have disabilities that required her to clean, bathe, dress and cook for him. She was also aware that her boyfriend did a significant amount of work outside the house including working as a scrap metal dealer, carpenter and woodcutter.
The defendant faces up to five years in prison and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the SSA’s Office of the Inspector General.
Owner of Utica Dog Food Plant Admits to Harboring Illegal AliensRead the Press Release
SYRACUSE, NEW YORK – Michael Dote, age 47, of West Edmeston, New York, pled guilty to harboring four illegal aliens from November 2013 through December 31, 2013 at a dog food plant Dote owns named Scooby Rendering, Inc. ("Scooby"), located at 1930 Oriskany Street, Utica, New York according to United States Attorney Richard S. Hartunian.
During the plea hearing on May 8, 2015, Dote admitted as the co-owner/operator of Scooby, he was responsible for the hiring of Scooby employees. In 2013, Dote hired four illegal aliens from Guatemala. When Dote hired the four aliens, he did not request any documentation verifying that they were authorized to work in the United States. On December 30, 2013, emergency crews responded to the report of a fire at one of the loading docks at Scooby. The fire investigation subsequently revealed that there were four aliens working and residing at Scooby. Dote admitted that he harbored the aliens and that such conduct substantially facilitated the aliens’ remaining in the United States.
The defendant is facing a statutory maximum sentence of 5 years imprisonment and a maximum fine of $250,000.00. Dote is scheduled to be sentenced on September 18, 2015 before the Honorable Glenn T. Suddaby.
This prosecution resulted from an investigation conducted by U.S. Homeland Security Investigations (HSI), Syracuse, New York, with cooperation from the New York State Police, Whitestown Police Department, ICE Enforcement and Removal Operations, U.S. Border Patrol, Utica Police Department, and CBP Air and Marine Operations. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant United States John Duncan at (315) 448-0672.
O.C. Firefighter Pleads Guilty to Child Pornography Charges for Sending Money Abroad to Produce Explicit Photos of Young GirlsRead the Press Release
SANTA ANA, California – A commercial firefighter who resides in Huntington Beach pleaded guilty this morning to a federal charge of attempting to produce child pornography after sending money to what he thought was a young girl in the Philippines to purchase a camera to take sexually explicit photos of herself and an 11-year-old friend.
John McArthur, 57, pleaded guilty before United States District Judge Josephine Staton.
An investigation revealed that in January 2012 McArthur had online conversations with a person he believed was a 13-year-old girl in the Philippines. During those online conversations, McArthur agreed to send money for the purchase of a camera that would be used to take sexually explicit photographs of the girl and an 11-year-old friend. McArthur later went to a Western Union agent to transfer the money to the 13-year-old minor.
Unbeknownst to McArthur at the time, the person posing as the 13-year-old girl was Robert Oliver Clark, 75, a United States citizen residing in the Philippines. Clark was arrested in September 2014 in a related case, and he has agreed to plead guilty to possession of child pornography. In a plea agreement recently filed in United States District Court, Clark admitted that he “possessed, in his computer hard drive and in his email accounts, 5,443 images and 53 videos of child pornography, including 43 images and 1 video portraying sadistic or masochistic conduct and 16 images portraying toddlers.” Clark, who resided in Texas prior to moving to the Philippines, is scheduled to enter his guilty plea on May 21 in United States District Court in Los Angeles.
During this investigation, law enforcement authorities discovered that McArthur received hundreds of images and several videos of child pornography through his email accounts.
McArthur is scheduled to be sentenced by Judge Staton on August 21, at which time he faces a statutory maximum sentence of 30 years in federal prison.
The investigation into McArthur and Clark was headed by the United States Postal Inspection Service, which received substantial assistance from the U.S. Department of State, Diplomatic Security Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Los Angeles Joint Regional Intelligence Center.
“Protecting children from crimes of sexual abuse and exploitation is a priority for the U.S. Postal Inspection Service,” stated Robert Wemyss, Inspector in Charge for the Los Angeles Division. “I'm proud of the work of the Postal Inspection Service and our investigative partners to bring child predators to justice. U.S. Postal Inspectors have investigated these crimes for more than a century. While the predators’ use of technology has evolved, the core harm has not changed: a child's lost innocence. We will not lose sight of this, and remain steadfast in our efforts to investigate, apprehend, and assist in the prosecution of those who seek to exploit children via the U.S. Mail, wherever in the world they may be.”
Release No. 15-043
O'Fallon, Missouri, Man Sentenced on Federal Wire Fraud ChargesRead the Press Release
St. Louis, MO – DANA JEFFERSON was sentenced to 42 months imprisonment on multiple fraud charges involving a scheme to lure lenders by falsely representing that he was the beneficiary of a multi-million dollar inheritance.
According to court documents, Jefferson represented to prospective lenders that he had been left a multi-million dollar inheritance from his deceased father’s estate, with the amount ranging from $5,000,000 to $200,000,000. Jefferson sometimes told lenders that the funds were kept in a trust, and other times that the funds were kept either in a local credit union or a bank in Miami, Florida. Jefferson also told lenders that he did not have immediate access to his inheritance, providing various explanations as to the reasons why. However, Jefferson had not been left any such inheritance. Instead, the inheritance was a fiction used to induce his victims to lend him money and to offer him free housing at their residences. Jefferson made false promises to lenders that once he gained access to his inheritance, he would use the funds to purchase homes for them, or in some cases, would repay double the amount of the loan. Jefferson also promised other lenders that he would purchase them expensive motor vehicles, pay for plastic surgery, cruises and a wedding. Jefferson obtained in excess of $740,000 in loans from nine individuals as part of his scheme.
Jefferson, of O’Fallon, Missouri (also known as Casey Jefferson, Dana Tiberius Jefferson and Dana Tyrone Jefferson), pled guilty in January to four felony counts of wire fraud. He appeared today for sentencing before United States District Judge Audrey G. Fleissig.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Richard Finneran handled the case for the U.S. Attorney’s Office.
New York Man Enters Guilty Plea to All Twenty One Counts of Federal IndictmentRead the Press Release
Stephen M. Howells II, 39, of Hermon, New York, pleaded guilty today to all 21 counts of a federal indictment charging him with child exploitation offenses, according to U.S. Attorney Richard S. Hartunian for the North District of New York and Special Agent in Charge Andrew T. Vale of the Albany Division for the Federal Bureau of Investigation (FBI). Howells will be sentenced by U.S. District Judge Glenn T. Suddaby on Friday, Sept. 18, 2015 at 11 a.m. in Syracuse, New York. A trial is scheduled for co-defendant Nicole Vaisey on June 22, 2015 before Judge Suddaby in Syracuse, New York.
Howells pleaded guilty to conspiracy to produce child pornography, producing child pornography (Counts 2-10) and possessing child pornography. The conspiracy count (Count 1) and 15 additional counts relate to Howells’ sexual abuse of six separate children, ranging in age from 5 to 11 and his filming of that abuse on sixteen dates between December 2012 and August 2014. Howells is charged alone in six of those counts (Counts 11-16), Vaisey is also charged with conspiracy and nine of the production counts (Counts 2-10). Howells also pleaded guilty to five counts of possession of child pornography (Counts 17-21), separate and apart from the children and images charged in the first 16 counts of the superseding indictment. These counts relate to numerous image and video files Howells collected from the Internet and downloaded to each of five separate hard drives from computers that were recovered from his residence. These images and video files also involve prepubescent minors and minors under the age of 12.
Howells’ admissions as part of his guilty plea included the following: from September 2013 to August 2014, Howells conspired with Vaisey to produce child pornography. Howells obtained drugs through his work as a registered nurse and he used the drugs to sedate the child victims. On 16 specified dates between December 2012 and August 2014, Howells sexually abused six separate children, ranging in age from 5 to 11, sometimes with Vaisey also doing so, as Howells or Vaisey filmed that abuse. Howells and Vaisey planned to abduct children to engage in sexually explicit conduct. They kidnapped two Amish children from a farm stand in August of 2014 to use them to engage in sexually explicit conduct and produce images and videos of that conduct. On Aug. 15, 2014, Howells possessed five separate computer hard drives containing numerous image and video files of actual young children engaged in sexually explicit conduct.
Howells faces at least 15 years imprisonment and up to 30 years on the conspiracy charge, as well as on each of the substantive exploitation counts. He also faces a maximum sentence of 20 years on each of the possession counts. The court has the discretion to run all of these sentences concurrently or consecutively to one another. Howells will also be required to serve a term of supervised release of a minimum of five years and up to life to follow any term of incarceration. In addition, conviction on any count of the superseding indictment will require Howells to register as a sex offender.
“The criminal conduct committed by Stephen Howells is beyond comprehension,” said U.S. Attorney Hartunian. “Our hearts go out to all the young victims who endured his unspeakable acts. We will continue to do everything in our power to see that he will never abuse another innocent child. I commend the community, the St. Lawrence County Sheriff’s Office, the New York State Police and the Federal Bureau of Investigation for working tirelessly to bring him to justice.”
“The crimes committed by Howells are some of the most horrific imaginable,” said Special Agent in Charge Vale. “He carefully planned and carried out these abuses and exploitations and today's guilty plea is the result of a vigorous investigation to locate Howells and uncover the full extent of his criminal actions. The FBI commends the work and dedication of its law enforcement partners and the U.S. Attorney's Office. It is because of this essential collaboration that the victims were recovered and that Howells is receiving justice for his crimes.”
This case was investigated by the St. Lawrence County Sheriff’s Office and the FBI with substantial assistance from the New York State Police. It is being prosecuted by Assistant U.S. Attorneys Lisa Fletcher and Tamara Thomson.
The case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New Jersey Summer Camps Must Reasonably Accommodate Children with DisabilitiesRead the Press Release
NEWARK, N.J. – With summer approaching, parents are making arrangements to send their children to camps. To help ensure that children with disabilities receive the opportunity to attend summer camp, the U.S. Attorney’s Office announced today that it has sent the attached flyer to hundreds of summer camps located within the District of New Jersey, reminding them of their obligations under the Americans with Disabilities Act (ADA).
“A disability is no reason to deny a child a chance to enjoy the friendships and learning experiences available at summer camps,” U.S. Attorney Fishman said. “Reasonable accommodations are not an option; they are a requirement under the law.”
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modifications to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
Additional information about the ADA is available at www.ada.gov and http://www.justice.gov/usao-nj/civil-rights-enforcement.
camp_ada_flyer.pdf (58.21 KB)
New Iberia man sentenced to 9 years in prison for possessing child pornographyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a New Iberia man was sentenced Thursday to 108 months in prison on charges that he downloaded child pornography onto his computer.
Jason Daniel Scott, 32, of New Iberia, La., was sentenced by U.S. District Judge Patricia Minaldi on one count of possession of child pornography. He was also sentenced to a lifetime of supervised release and must register as a sex offender. According to evidence presented at the January 29, 2015 guilty plea, agents detected child pornography being downloaded from an internet file sharing service in October of 2010 to a residence in Lafayette Parish, which is where Scott was living at the time. The home was searched on October 20, 2010, and a computer was seized. Once the computer’s hard drive was examined, agents found child pornography that was downloaded from the internet.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.
New Castle Man Sentenced to 27+ Years in Federal Prison for Producing Videos Showing Abuse of GirlRead the Press Release
PITTSBURGH - A former resident of New Castle, Pa., was sentenced in federal court to 327 months imprisonment, followed by lifetime supervised release, on his conviction of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Donald A. Miller, 43, of New Castle, Pa.
According to information presented to the court at the Oct. 22, 2014, guilty plea hearing and at the sentencing, Miller, on Dec. 22, 2013, used and coerced an eight-year-old victim to engage in sexually explicit conduct for the purpose of producing videos depicting her sexual exploitation. The child victim was identified and Miller arrested after the sexual videos depicting her abuse were discovered on a used Samsung Galaxy Tablet that Miller sold to a New Castle resident at a flea market in Ohio the day before Christmas 2013. The resident immediately notified the New Castle Police Department when she happened upon the videos depicting Miller and the child stored in the Galaxy’s memory. The witness was able to identify Miller as the perpetrator and the individual who sold her the electronic device.
Miller is scheduled to be sentenced in Lawrence County, Pennsylvania, during the week of May 18, 2015, for child rape and other offenses related to the sexual contact with the eight-year-old victim.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police, and the New Castle Police Department for the investigation leading to the successful prosecution of Miller.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Member of ‘Dirty Block’ Atlantic City, New Jersey, Gang Sentenced to 20 Years in Prison on Drug Conspiracy and Weapons ChargesRead the Press Release
CAMDEN, N.J. – A member of a criminal street gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, New Jersey, was sentenced today to 240 months in prison on drug conspiracy and weapons charges, U.S. Attorney Paul J. Fishman announced.
Terry Davis, 26, of Atlantic City – was convicted in January 2015 of conspiracy to distribute one kilogram or more of heroin, possession of firearms in furtherance of a drug trafficking crime, brandishing and discharging firearms in furtherance of the conspiracy and being a felon in possession of a weapon following a six-week trial before U.S. District Judge Joseph E. Irenas in Camden federal court. The jury deliberated approximately five hours before returning the verdicts.
According to documents filed in this case and the evidence presented at trial:
Davis is a member of a gang known as “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,” which operated in a geographic area of Atlantic City that includes the public housing apartment complexes of Stanley Holmes Village Public Housing Complex, Renaissance Plaza and Schoolhouse Apartments. He participated in a violent street-level drug trafficking organization that controlled heroin sales through the possession of dozens of firearms and the use of gun violence, including at least one homicide and several non-fatal, drug-related shootings.
In addition to the prison term, Judge Irenas sentenced Davis to 10 years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s convictions.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
The charges and allegations against the other defendants arrested in this investigation are merely accusations and the defendants are considered innocent unless and until proven guilty.
Defense Counsel: Gina Capuano Esq., Philadelphia
Man Pleads Guilty to Possession of Firearm by Illegal AlienRead the Press Release
St. Thomas, USVI – Eilin Montano, 35, pleaded guilty today in District Court on St. Thomas to Possession of a Firearm by an Illegal Alien, United States Attorney Ronald W. Sharpe announced.
As part of his plea, Montano admitted that he is in the United States unlawfully and without status, and that on November 17, 2014, he discharged a firearm with an obliterated serial number in a residential area while involved in a domestic disturbance.
Possession of a Firearm by an Illegal Alien carries a maximum sentence of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for August 30, 2015.
This case was investigated by the Department of Homeland Security Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney David White.