Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
25 June 2015
Adam Scott Mitchell Sentenced to 25 Years in Federal Prison for Production of Child PornographyRead the Press Release
GREENEVILLE, Tenn. -- Adam Scott Mitchell, 31, of Appalachia, Va., was sentenced to serve 300 months in prison by the Honorable Leon Jordan, Senior U.S. District Judge. Mitchell pleaded guilty in January 2015 to a federal grand jury indictment charging him with the production of child pornography.
Upon his release from prison, he was ordered to remain on federal supervised release for the remainder of his life and is subject to numerous special conditions of release which restrict his access to children and the internet.
Mitchell, who was previously convicted of indecent liberties with a minor under the age of 15 in Wise County, Va., and violating Virginia's Sex Offender Registry Law in Scott County, Va., made movies and still images of a young child who was the daughter of his live-in girlfriend. The movies included him engaging the child in sexual activity and other illegal sexual conduct. He has remained in custody since his arrest in Kingsport, Tenn., in August 2014.
The indictment and subsequent conviction of Mitchell was the result of an investigation conducted by the U.S. Marshals Service, Federal Bureau of Investigation, Virginia State Police, Big Stone Gap Police Department, Johnson City Police Department, and Kingsport Police Department. Assistant U.S. Attorney Helen Smith represented the United States.
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 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.
###
29-Year-Old Kent County Man, Clint Andrews Williamson, Receives 30-Year Sentence for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Clint Andrews Williamson, 29, of Grand Rapids, Michigan, received a 30-year sentence in federal prison yesterday for producing a child pornography video of a toddler and live-streaming it to a couple in Georgia, who are currently facing state and federal charges related to child abuse and child pornography. The judge ordered Williamson to pay approximately $3,000 in restitution to the victim, as well as $2,000 in restitution to a child who appeared in a pornographic photograph Williamson downloaded from the internet. Williamson pled guilty in federal court in February 2015.
Williamson was a registered user of a secretive child pornography website, which has since been shut down by law enforcement, where he posted child pornography and connected with others about a sexual interest in children. The website had discussion boards on topics including bestiality, child rape, sex tourism, and child prostitution, as well as advice on how to molest children and avoid detection by law enforcement. Williamson also followed other online groups with topics that included rape and torture. He chatted with people online about having sexually abused the victim in this case and his desire to rape young girls. He admitted to live- streaming two sexually explicit videos of the toddler to the couple in Georgia. In a handwritten journal Williamson wrote after the FBI and Kentwood Police Department executed a search warrant at his residence, Williamson stated he had done things that he could not even bring himself to write down and described himself as "a monster."
The victim’s mother spoke at the sentencing and told the court, "The damage he has caused the victim is far worse than anything I could ever suffer. Nothing anyone or I can do can change what he did. There is no going back. No apology will ever be enough. Nothing will be enough. I am left to fear for the future." She continued, "I pray the victim will not remember what he did and that the trauma will not affect the victim’s future. I pray, and I wait."
U.S. District Judge Janet T. Neff handed down the maximum possible sentence – 30 years’ imprisonment followed by a lifetime of federal supervised release. In delivering the sentence, Judge Neff described Williamson as "a very dangerous person." "We need to protect the public, and in particular young girls" from Williamson, she said. Although the guidelines in this case called for a life sentence, the judge explained that she was "constrained by the statutory maximum of 30 years."
In announcing the sentence, U.S. Attorney Patrick Miles stated, "The FBI and U.S. Attorney’s Office in the Western District of Michigan are working hard to identify and bring to justice child perpetrators in our community. Thanks to their collaboration with law enforcement partners in Georgia, the people who received these abhorrent videos are also being held accountable."
The federal investigation was conducted by the FBI and the West Michigan Based Child Exploitation Task Force (WEBCHEX), a collaborative of state and local law enforcement in West Michigan. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
END
24 June 2015
“Green Cross” Hits Red Light as Owner Admits Fraudulent Use of Doctor’s Name and LicenseRead the Press Release
SAN DIEGO – Nelson Leone, the owner and operator of six San Diego-based medical marijuana clinics, pleaded guilty to identity theft in federal court today, admitting that he forged a doctor’s signature and fraudulently used that doctor’s name and license number in order to issue medical marijuana recommendations.
Leone’s six clinics were located throughout San Diego County in Pacific Beach, Mission Valley, Midway, and El Cajon. He advertised them under the name Green Cross Evaluations in The Reader and on the Internet. These advertisements made it clear that the clinics were set up to be “consumer friendly” with on- site ATM services, accommodations for walk-in patients, and a $25 “new” patient special. According to his website, Leone’s clinics were supposed to provide patients with access to a “licensed physician” that would evaluate them in his clinic for a medical condition.
Five of Leone’s six clinics, however, did not have a licensed medical doctor. Leone (who was stripped of his medical license in 1995) employed a licensed doctor at just one of the six clinics to meet with customers and issue medical marijuana recommendations. In the absence of a licensed physician who could validly evaluate patients, Leone issued medical marijuana recommendations to customers at the other five clinics under his sole doctor’s name and license number. These recommendations falsely certified that the customers were evaluated in the doctor’s office and suffered from a medical condition that “may benefit from the use of medical marijuana.”
U.S. Attorney Laura E. Duffy emphasized that every patient – regardless of whether they’re seeking medical marijuana or other prescription drugs – has the right to have a licensed medical professional advising them on matters that affect their health. “It is simply unacceptable to have someone forge a doctor’s signature for their own personal financial gain.”
As part of his plea, Leone agreed to shut down the six Green Cross Evaluations clinics.
Leone is scheduled to be sentenced on September 14, 2015, at 8:30 a.m. before U.S. District Judge M. James Lorenz.
DEFENDANTS Case Number: 15cr1650-L Nelson Leone Age: 72 San Diego, California CHARGESIdentity Theft – Title 18, U.S.C., Section 1028(a)(7)
INVESTIGATING AGENCIES
Maximum penalty: 5 years’ imprisonment and $250,000 fineDepartment of Homeland Security, Homeland Security Investigations
Westminster Investment Advisor Pleads Guilty to Mail Fraud in Scheme to Steal Almost $2 Million of Clients’ MoneyRead the Press Release
Baltimore, Maryland –Jasper Buck, age 59, formerly of Westminster, Maryland and elsewhere including Sanford and Lake Mary, Florida, pleaded guilty today to mail fraud arising from an investment fraud scheme in which Buck stole more than $1.96 million from clients.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, Buck worked for mortgage companies, but held himself out to investors as an experienced investment advisor. Buck admitted that from October 2006 through at least December 2014, he told his victims that he was a representative of Portfolio Financial Group (PFG). Buck told the victims that PFG would loan money provided by the victims to borrowers who needed funds quickly or were unable to obtain traditional bank loans and were therefore willing to pay a higher interest rate on the loans. In fact, there were no such borrowers, and Buck used the victims’ money for his own personal use or to further his fraud scheme.
Buck told his victims that there were other owners and employees of PFG. However, bank accounts for PFG listed Buck as a signatory, and PFG’s addresses were listed as either Buck’s personal residence or shipping and packaging stores such as UPS.
Buck convinced some victims to invest all or a portion of their retirement savings often through loans taken out of the victims IRA or 401(k), or to refinance their home mortgages and use lines of credit, in order to invest the proceeds with Buck through PFG. Buck promised the victims that they would receive a monthly return on their investments greater than the victims’ monthly loan payments. In addition, he convinced some victims to move their retirement savings into an account with a self-directed IRA custodian for the purpose of then having those funds transferred to him. Rather than investing the money turned over to him, Buck used some of the money on himself, as well as to pay other victims in order to convince those victims that their investments were earning the promised returns.
To conceal the scheme, Buck issued payments to some victims, using funds received from other victims, to convince them that their investments were earning the expected returns. Buck made telephone calls and sent text messages and emails to victims making false statements regarding purported investments, to lull the victims into believing that their loan principal was safe and that their purported investments were sound.
Beginning in January 2014 when Buck had exhausted all of the victims’ funds in his PFG account and could no longer make any payments to the victims, he falsely represented that: there was no issue with PFG financially; PFG was updating software, or was slowed by new federal regulations, or was being sold to another company and no assets could be released until the sale was complete; victim money was in PFG’s possession, but Buck could not physically access it; or that Buck was pursuing legal action against PFG.
As a result of the scheme, Buck obtained at least $1,961,364 from the victims, which is the amount Buck is required to forfeit as part of his plea agreement.
Buck and the government have agreed that if the Court accepts the plea agreement Buck will be sentenced to 63 months in prison. U.S. District Judge George L. Russell III has scheduled sentencing for October 2, 2015.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Sean Delaney, who is prosecuting the case.
U.S. Requires Arizona and New Mexico Plant Owners to Reduce Emissions at Navajo Nation Four Corners Power PlantRead the Press Release
ALBUQUERQUE – Today, the U.S. Department of Justice and the Environmental Protection Agency (EPA) announced a federal Clean Air Act settlement with several Arizona and New Mexico-based utility companies to install pollution control technology to reduce harmful air pollution from the Four Corners Power Plant located on the Navajo Nation near Shiprock, N.M.
The settlement requires an estimated $160 million in upgrades to the plant’s sulfur dioxide (SO2) and nitrogen oxide (NOx) pollution controls. The settlement also requires $6.7 million to be spent on three health and environmental mitigation projects for tribal members and payment of a $1.5 million civil penalty. EPA expects that the actions required by the settlement will reduce harmful emissions by approximately 5,540 tons per year.
“This settlement is a significant achievement for air quality and the health of the people of the Navajo Nation and the surrounding region,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The agreement will require stringent pollution controls as well as public health and environmental projects that will have lasting benefits for the Navajo people. It is also a reflection of how serious we are about addressing environmental justice issues in Indian country.”
“All power plants should be using the latest air pollution control technology,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “The law requires companies to protect clean air, and those living nearby – like Navajo communities – expect it. In addition to installing pollution controls, Arizona Public Service will also take the responsible steps to protect the health of those living near the Four Corners plant, which is one of the largest sources of harmful pollution in the country.”
“This settlement will reduce pollution from the Four Corners Power Plant for years to come, and requires the Plant's owners to fund significant health and environmental projects that will further benefit the Navajo Nation and other communities impacted by the Plant,” said U.S. Attorney Damon P. Martinez for the District of New Mexico. “We also applaud the efforts of the citizen groups and other co-plaintiffs who helped represent the interests of the Navajo people and the environment so well, and who contributed significantly to obtaining such a fine result for the Four Corners Region.”
Arizona Public Service Company (APS) is the operator and primary owner of the Four Corners Plant. El Paso Electric Company, Public Service Company of New Mexico, Salt River Project Agricultural Improvement and Power District and Tucson Electric Power Company are current co-owners of the plant and Southern California Edison Company is a former co-owner of the plant. The settlement resolves claims that the companies violated the New Source Review provisions of the federal Clean Air Act by unlawfully modifying the Four Corners Power Plant without obtaining required permits or installing and operating the best available air pollution control technology.
The pollution controls for NOx required by the settlement improve the Selective Catalytic Reduction controls for the Four Corners Power Plant finalized by EPA in 2012 under the Clean Air Act’s regional haze program. The current controls for SO2 will be upgraded to increase their efficiency. These additional upgrades will reduce SO2 emissions by approximately 4,653 tons per year and NOx emissions by approximately 887 tons per year.
The settlement requires $6.7 million of mitigation funds to be spent on three types of projects, including cleaner heating systems, weatherization and a Health Care trust fund. Southern California Edison will spend approximately $3.2 million on a project to replace or retrofit local residents’ inefficient, higher-polluting wood-burning or coal-burning appliances with cleaner-burning, more energy-efficient heating systems. In addition, APS and the other current co-owners will spend approximately $1.5 million for weatherization projects for local homes to reduce energy use. Examples include the installation of floor, wall and attic insulation; sealing of windows and doors; duct sealing; passive solar retrofits; and testing and repair of combustion appliances.
Finally, APS and the other current co-owners will spend $2 million to establish a Health Care Project trust fund. The Health Care Project trust will pay for certain medical expenses for people living on the Navajo Nation, near the Four Corners Power Plant, who require respiratory health care. The funds may be used to pay for complete medical examinations, tests, review of current medications, prescriptions, oxygen tanks and other medical equipment. The funds may also be used to pay for transportation to and from the hospital or doctors’ offices.
SO2 and NOx, two predominant pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants form particulates that can cause severe respiratory and cardiovascular impacts and premature death.
This settlement is part of EPA’s national enforcement initiative to control harmful emissions from large sources of pollution, which includes coal-fired power plants, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from all these settlements will exceed 2 million tons each year, once all the required pollution controls are installed and implemented.
Citizen groups including Diń́é Citizens Against Ruining Our Environment, To’ Nizhoni Ani and National Parks Conservation Association are co-plaintiffs to the settlement and will simultaneously be resolving their own currently pending lawsuit against the companies.
The settlement was lodged with the U.S. District Court for New Mexico and is subject to a 30-day public comment period and final court approval. The proposed consent decree can be viewed at www.justice.gov/enrd/consent-decrees.
More information about EPA’s enforcement initiative: http://www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html
U.S. Requires Arizona and New Mexico Plant Owners to Reduce Emissions at Navajo Nation Four Corners Power PlantRead the Press Release
Today, the U.S. Department of Justice and the Environmental Protection Agency (EPA) announced a federal Clean Air Act settlement with several Arizona and New Mexico-based utility companies to install pollution control technology to reduce harmful air pollution from the Four Corners Power Plant located on the Navajo Nation near Shiprock, New Mexico.
The settlement requires an estimated $160 million in upgrades to the plant’s sulfur dioxide (SO2) and nitrogen oxide (NOx) pollution controls. The settlement also requires $6.7 million to be spent on three health and environmental mitigation projects for tribal members and payment of a $1.5 million civil penalty. EPA expects that the actions required by the settlement will reduce harmful emissions by approximately 5,540 tons per year.
“This settlement is a significant achievement for air quality and the health of the people of the Navajo Nation and the surrounding region,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The agreement will require stringent pollution controls as well as public health and environmental projects that will have lasting benefits for the Navajo people. It is also a reflection of how serious we are about addressing environmental justice issues in Indian country.”
“All power plants should be using the latest air pollution control technology,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “The law requires companies to protect clean air, and those living nearby – like Navajo communities – expect it. In addition to installing pollution controls, Arizona Public Service will also take the responsible steps to protect the health of those living near the Four Corners plant, which is one of the largest sources of harmful pollution in the country.”
“This settlement will reduce pollution from the Four Corners Power Plant for years to come, and requires the Plant's owners to fund significant health and environmental projects that will further benefit the Navajo Nation and other communities impacted by the Plant,” said U.S. Attorney Damon P. Martinez for the District of New Mexico. “We also applaud the efforts of the citizen groups and other co-plaintiffs who helped represent the interests of the Navajo people and the environment so well, and who contributed significantly to obtaining such a fine result for the Four Corners Region.”
Arizona Public Service Company (APS) is the operator and primary owner of the Four Corners Plant. El Paso Electric Company, Public Service Company of New Mexico, Salt River Project Agricultural Improvement and Power District and Tucson Electric Power Company are current co-owners of the plant and Southern California Edison Company is a former co-owner of the plant. The settlement resolves claims that the companies violated the New Source Review provisions of the federal Clean Air Act by unlawfully modifying the Four Corners Power Plant without obtaining required permits or installing and operating the best available air pollution control technology.
The pollution controls for NOx required by the settlement improve the Selective Catalytic Reduction controls for the Four Corners Power Plant finalized by EPA in 2012 under the Clean Air Act’s regional haze program. The current controls for SO2 will be upgraded to increase their efficiency. These additional upgrades will reduce SO2 emissions by approximately 4,653 tons per year and NOx emissions by approximately 887 tons per year.
The settlement requires $6.7 million of mitigation funds to be spent on three types of projects, including cleaner heating systems, weatherization and a Health Care trust fund. Southern California Edison will spend approximately $3.2 million on a project to replace or retrofit local residents’ inefficient, higher-polluting wood-burning or coal-burning appliances with cleaner-burning, more energy-efficient heating systems. In addition, APS and the other current co-owners will spend approximately $1.5 million for weatherization projects for local homes to reduce energy use. Examples include the installation of floor, wall and attic insulation; sealing of windows and doors; duct sealing; passive solar retrofits; and testing and repair of combustion appliances.
Finally, APS and the other current co-owners will spend $2 million to establish a Health Care Project trust fund. The Health Care Project trust will pay for certain medical expenses for people living on the Navajo Nation, near the Four Corners Power Plant, who require respiratory health care. The funds may be used to pay for complete medical examinations, tests, review of current medications, prescriptions, oxygen tanks and other medical equipment. The funds may also be used to pay for transportation to and from the hospital or doctors’ offices.
SO2 and NOx, two predominant pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants form particulates that can cause severe respiratory and cardiovascular impacts and premature death.
This settlement is part of EPA’s national enforcement initiative to control harmful emissions from large sources of pollution, which includes coal-fired power plants, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from all these settlements will exceed 2 million tons each year, once all the required pollution controls are installed and implemented.
Citizen groups including Diń́é Citizens Against Ruining Our Environment, To’ Nizhoni Ani and National Parks Conservation Association are co-plaintiffs to the settlement and will simultaneously be resolving their own currently pending lawsuit against the companies.
The settlement was lodged with the U.S. District Court for New Mexico and is subject to a 30-day public comment period and final court approval. The proposed consent decree can be viewed at www.justice.gov/enrd/consent-decrees.
More information about EPA’s enforcement initiative: http://www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html
U.S. Attorney Miles Addresses Community Engagement at Annual Meeting of Chiefs of PoliceRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles spoke today at the Michigan Association of Chiefs of Police Summer Professional Development Conference held at Boyne Highlands in Harbor Springs, Michigan. On the 21st Century policing panel, which also included local law enforcement police chiefs, U.S. Attorney Miles addressed the need for law enforcement to engage community members to avoid situations that occurred in Ferguson, Missouri and Baltimore, Maryland.
Specifically, U.S. Attorney Miles’s comments focused on the importance of outreach and communication to build relationships and trust with community leaders. "Law enforcement and the communities they serve share the same goals, namely peace, security, and safety," he noted. But tensions between law enforcement and the communities they serve can arise because of a lack of communication, relationships and mutual understanding, he explained.
U.S. Attorney Miles emphasized that the definition of community leader has changed and expanded. "Teens and young adults with a large social media following can reach and influence thousands of people just like a senior minister can with a congregation. Law enforcement leaders must engage those in the millennial generation prior to a crisis occurring."
U.S Attorney Miles offered suggestions on how to foster constructive communication, positive relationships and greater understanding. In Grand Rapids and Benton Harbor, for example, U.S. Attorney Miles spearheaded the development of Advocates and Leaders for Police and Community Trust (ALPACT). In roundtable format, community leaders and law enforcement meet to discuss topical subjects, including community awareness and perceptions, media portrayals, officer recruitment and how to respond to critical incidents. Originally launched by the Michigan Roundtable for Diversity and Inclusion in 1998 in Southeast Michigan, ALPACT programs likewise exist in Detroit, Saginaw and Flint.
In addition, U.S. Attorney Miles recently met with law enforcement leaders in Lansing, Grand Rapids, Kalamazoo, Battle Creek, Muskegon and Benton Harbor to discuss their protocols for dealing with officer-involved shootings and efforts to build relationships with community members of all ages and ethnicities. Planning ahead and building the right relationships today can allow communities to avoid in the future the harms recently seen elsewhere in the country.
END
Two Norfolk Men Plead Guilty to Heroin and Narcotics ChargesRead the Press Release
NORFOLK, Va. – Cornelius J. Gaymon, 34, and Tedrick O. Speller, 33, both of Norfolk, have pleaded guilty to heroin and narcotics charges. Gaymon, who is a 10-time convicted felon, pleaded guilty today to possession with intent to distribute 23 grams of heroin. Speller pleaded guilty yesterday to possession with intent to distribute 100 grams of crack cocaine.
In a statement of facts filed with Gaymon’s plea agreement, law enforcement officers recovered approximately 23 grams of heroin, which was packaged in separate bags – one of which contained 83 capsules filled with heroin. Additionally, law enforcement officers recovered crack cocaine, cocaine, marijuana and $1,313 dollars in cash, and an industrial sized, six-ton hydraulic press machine that is believed to be used to compress heroin in order to expand its size and create greater profits. A cutting agent, packaging materials and a Ziploc bag containing clear glycerin capsules were also recovered. Gaymon faces a maximum penalty of 20 years in prison when he is sentenced on Oct. 2, 2015.
In a statement of facts filed with Speller’s plea agreement, law enforcement officers conducted several undercover purchases of crack cocaine from Speller before executing a search warrant on his residence in the Berkley neighborhood of Norfolk. Law enforcement officers recovered crack cocaine, heroin, cocaine, marijuana, firearms, digital scales, drug packaging materials, and several thousand dollars. Speller also maintained a storage unit, which contained nearly $50,000 dollars. Speller faces a minimum penalty of five years in prison and a maximum penalty of 40 years in prison when he is sentenced on Oct. 2, 2015.
The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Mark R. Herring, Virginia Attorney General, made the announcement after the pleas were accepted by U.S. Magistrate Judge Douglas E. Miller and Lawrence R. Leonard.
This case was investigated by the DEA’s High Intensity Drug Trafficking Area (HIDTA) Task Force with the assistance of nearly 40 officers from the Norfolk Police Department. Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney Andrew C. Bosse 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. 2:15-cr-066, and 2:15-cr-067.
Two New York Men Sentenced to Prison for Armed Robberies of Electronics Stores in New JerseyRead the Press Release
TRENTON, N.J. – Two New York men were sentenced to prison today for participating in armed robberies of electronics stores in New Jersey, including armed robberies in Linden, Paramus, and Woodbridge, U.S. Attorney Paul J. Fishman announced.
Eric Williams, 34, and Sulayman Graham, 32, both of Brooklyn, New York, were sentenced to 151 and 63 months in prison, respectively. Williams and Graham previously pleaded guilty before U.S. District Judge Joel A. Pisano to separate informations charging them with one count of conspiracy to commit Hobbs Act robberies. U.S. District Judge Anne E. Thompson imposed both sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Sept. 20, 2012, Carl Williams, 31, of Brooklyn, and Leonard Arrington, 28, of Roslyn Heights, New York, walked into a T-Mobile store in Linden brandishing a firearm, while Eric Williams and other conspirators – including Kajaun Crawley, 28, and Terrell McQueen, 31, both of Brooklyn – served as lookouts and get-away drivers. Carl Williams and Arrington then tied up the employees in the back of the store, stole 50 to 60 cell phones and fled in a Land Rover. Eric Williams and other conspirators then delivered the stolen phones to a cell phone store in Brooklyn.
On Oct. 2, 2012, Arrington entered a T-Mobile store in Woodbridge, brandishing a firearm, along with another man, while Graham and McQueen waited outside as lookouts and get-away drivers. After locking the front door, the men took the employees to the back of the store and tied them up, then stole approximately 40 cell phones. One of the robbers then called Graham, who drove them away in a Land Rover. Eric Williams and others delivered the stolen phones to the same Brooklyn store.
Eric Williams participated in the planning of a subsequent robbery of an electronics store in Paramus, which took place on Jan. 16, 2013. Unique Randolph, 28, of Brooklyn, and another individual entered an electronics store and, after forcing employees and a customer into the back of the store, Randolph tied them up using zip-ties, while his conspirator held them at gunpoint. As Randolph and his conspirator were looting the store of cell phones, a UPS employee walked into the backroom. Randolph forced him onto the ground and used zip-ties to restrain him. Randolph and his conspirator then fled, along with Carl Williams who was waiting outside as a lookout.
In addition to the prison terms, Judge Thompson sentenced Williams and Graham to each serve three years of supervised release.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. He also thanked the Linden, Paramus, and Woodbridge police departments, as well as the New York City and Nassau County police departments and the Kings County District Attorney’s Office in New York for their work in this case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division.
Defense counsel:
Eric Williams: Michael A. Armstrong Esq., Willingboro, New Jersey
Sulayman Graham: Alyssa A. Cimino Esq., Fairfield, New JerseyTwo Men Plead Guilty to Alien SmugglingRead the Press Release
St. Thomas, USVI- Kendrick Christopher, 47, a Grenadian national, and Jeard Shillingford, 33, a Dominican national, pleaded guilty today in District Court on St. Thomas to an information charging them with encouraging and inducing aliens to enter the United States for commercial or financial gain in violation of law, United States Attorney Ronald W. Sharpe announced.
As part of their pleas, Christopher and Shillingford admitted to operating a sailing vessel containing 61 Haitian nationals seeking to enter the United States illegally, and that they did so for commercial or financial gain knowing that their actions were unlawful. The United States Coast Guard and U.S. Customs and Border Protection intercepted the vessel off the coast of St. John, U.S. Virgin Islands on June 10, 2015. Christopher and Shillingford face a maximum sentence of 10 years in prison and a $250,000.00 fine.
This case is being investigated by U.S. Customs and Border Protection, the U.S. Coast Guard, and the U.S. Department of Homeland Security Immigration and Customs Enforcement, Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney David White.
Three Somerset County, New Jersey, Men Charged with Armed Bank RobberyRead the Press Release
NEWARK, N.J. – Three Somerset County, New Jersey, men were charged today with the armed bank robbery of the Somerset Savings Bank in Somerville, New Jersey, U.S. Attorney Paul J. Fishman announced.
Luis Castaneda, 38, of Bound Brook, New Jersey; Carmelo Soto Jr., 24, of Manville, New Jersey; and Jamie Lee Ayuso Jr., 38, of Hillsborough, New Jersey, were each charged by complaint with one count of bank robbery. Castaneda and Soto were also charged with one count each of using a firearm during the commission of crime of violence. All three men are scheduled to make their initial appearances this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to documents filed in this case and statements court:
On June 12, 2015, Castaneda and Soto entered the Somerset Savings Bank while Ayuso stayed behind in the getaway vehicle. Castaneda drew a handgun while Soto jumped over the teller counter and demanded money from the bank tellers. After leaving the bank with the stolen money, Castaneda and Soto got in the getaway vehicle. Law enforcement officers immediately pulled over the getaway vehicle and arrested all three men.
The bank robbery count carries a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000. The brandishing a firearm during the bank robbery count carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison, which must be served consecutive to the other count.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Somerset County Prosecutor’s Office, under the direction of Geoffrey D. Soriano; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey; and the Hunterdon County Prosecutor’s Office, under the direction of Prosecutor Anthony P. Kearns III, with the investigation leading to the charges. He also thanked the Somerville, Manville, Middlesex Boro, Piscataway, Readington, Bridgewater, Clinton Township and Bound Brook police departments for their work on the case.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Office in Newark.
Three New Orleans Men Receive Lengthy Prison Sentences in Heroin Conspiracy Involving Overdose DeathRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MALCOLM BOLDEN, age 20, NOEL JONES, age 27, and TERRELL DYER, age 29, all of New Orleans, were sentenced today for their roles in a conspiracy to distribute at least one kilogram of heroin in the New Orleans area. BOLDEN was also sentenced for one count of distribution of heroin resulting in an overdose death.
United States District Judge Kurt D. Engelhardt sentenced BOLDEN to 300 months in prison, 5 years of supervised release following his prison term, and a $200 special assessment. A restitution hearing regarding BOLDEN is scheduled for September 30, 2015. Judge Engelhardt read from the bench a letter written by the victim’s mother, and had a picture of the victim displayed in the courtroom.
The Court sentenced JONES to 327 months in prison, with 240 months to run consecutive to a state court sentence of 12 years, as well as 5 years of supervised release and a $100 special assessment. DYER was sentenced to 162 months in prison, 5 years of supervised release, and a $100 special assessment. Six other defendants are scheduled for sentencing hearings in August and September of this year. Trial on the Indictment as to defendant THEODORE GRIFFIN is scheduled for September 14, 2015.
Before sentencing, Judge Engelhardt stated that there is a heroin epidemic in the New Orleans metropolitan area that spans racial and economic lines, and that the community needs to address the issue in part through cases such as this one.
“I applaud Judge Engelhardt for imposing such lengthy sentences in this case,” stated U.S. Attorney Polite. “Moreover, I share his sentiments regarding the heroin epidemic that we are experiencing both regionally and nationally. As the overdose death in this case illustrates, heroin trafficking is not a victimless crime.”
According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by dealers to communicate with suppliers, other co-conspirators, and customers. DEA worked together with agents of the Federal Bureau of Investigation to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.
The investigation showed that the defendants had been using a residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.
Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin. Typically one of the dealers would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood. Through subsequent calls and then visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.
According to the record, in July 2013, a court-authorized wiretap of the ‘dope’ phone used by defendant TERENCE TAYLOR intercepted a series of calls relating to the sale of heroin to a person who had recently been through treatment for heroin addiction, and who died later that day as a result of a heroin overdose. Intercepted calls helped to demonstrate that TAYLOR negotiated this particular sale of heroin and that BOLDEN subsequently met with the decedent to complete the sale.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF, with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
Three Deputy Sheriffs Found Guilty of Federal Civil Rights Offense in Beating of Visitor at Downtown Los Angeles JailRead the Press Release
LOS ANGELES – A federal jury this afternoon returned guilty verdicts against three deputies with the Los Angeles Sheriff’s Department who violated the civil rights of a visitor to the Men’s Central Jail by beating him while he was restrained with handcuffs.
Concluding a one-week trial, the jury determined that Deputies Fernando Luviano and Sussie Ayala, as well as former Sergeant Eric Gonzalez, violated the civil rights of the victim in 2011 when they beat the man and caused bodily injury. The jury also determined that all three defendants falsified records when they prepared reports about the incident.
Ayala and Gonzalez were additionally convicted of conspiring to violate the victim’s civil rights by using unreasonable force.
Two other defendants who were named in a federal grand jury indictment in late 2013 – Pantamitr Zunggeemoge and Noel Womack – previously pleaded guilty and are pending sentencing.
The evidence presented at trial showed that the victim and his girlfriend went to the jail to visit the woman’s incarcerated brother on February 26, 2011. Both visitors were in the possession of cell phones, which is prohibited under jail rules. When the phones were discovered, the victim was handcuffed and brought into an employee break room, where he was beaten and sprayed with a burning agent similar to pepper spray. The victim was later transferred to the hospital by paramedics.
Following the incident, Gonzalez instructed Zunggeemoge how to write a report that falsely described how the victim swung his left elbow and struck Zunggeemoge, which prompted the use of force against the victim. Subsequent reports by other defendants also falsely described how the victim attempted to escape from the break room.
As a result of today’s convictions, Ayala and Gonzalez face a statutory maximum sentence of 40 years in federal prison, and Luviano faces up to 30 years. United States District Judge George H. King, who presided over the trial, is scheduled to sentence the three defendants on November 2.
This case is the result of an investigation by the FBI, and is one in a series of cases resulting from investigation into corruption and civil rights abuses at county jails in downtown Los Angeles. With today’s verdicts, 14 current or former members of the Los Angeles Sheriff’s Department have now been convicted of federal charges.
Third Local 17 Member Sentenced for ExtortionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- The United States Attorney’s Office announced today that Carl Larson, 50, of Boston, NY, who was convicted of attempted extortion, was sentenced to six months in prison and one year of supervised release by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay restitution to victims.According to Assistant U.S. Attorneys Anthony M. Bruce and Edward H. White, who handled the case, Larson was a member of Local 17 of the International Union of Operating Engineers. The defendant attempted to force an Orchard Park contractor and its owner to sign with Local 17 by threatening the owner personally. After the contractor’s owner was stabbed by another Local 17 member the owner asked Larson, “What are the positives [to signing with the union]? You guys slash my tires, stab me in the neck, try to beat me up in a bar. What are the positives to signing? There are only negatives.” Larson responded by telling the owner that “The positives are that the negatives you are complaining about would go away.”
Larson was one of 12 officers and members of Local 17 arrested and charged in this case. Seven defendants pleaded guilty, President Mark Kirsch was convicted at trial, four were acquitted at trial.
The investigation of this case was handled by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Cheryl Garcia, Special Agent-in-Charge of the New York Regional Office, the Federal Bureau of Investigation, and the New York State Police, under the direction of Major Michael Cerretto.
Tennessee Man Charged with Driving to Minnesota to Have Sex with 13-Year-Old GirlRead the Press Release
United States Attorney Andrew M. Luger today announced a criminal complaint charging JEFFREY SCOTT EVANS, 51, with traveling from Tennessee to Bloomington, Minnesota, for the purpose of engaging in illicit sexual conduct with a 13-year-old female. EVANS made an initial appearance yesterday in U.S. District Court in St. Paul, Minn., before Magistrate Judge Jeffrey J. Keyes.
According to the criminal complaint and documents filed in court, on June 12, 2015, EVANS used the screen name “taboolooking” on a social media site called “chathour.com,” to initiate a conversation with another user who EVANS believed to be a 13-year-old female. EVANS indicated that he wanted to text and email with her, and if they liked each other he would travel from Tennessee to Minnesota to meet her.
According to the criminal complaint and documents filed in court, later on June 12, 2015, EVANS made a reservation at a hotel in Bloomington, Minn. On June 14, 2014, EVANS asked over text message “Do y really think y can stay with me 3 r 4 days and not get in trouble I hope u can.” The defendant sent photos of himself and described his car to the potential victim. EVANS also sent text messages depicting the sexual acts he wanted to engage in with the girl and photos of sex toys and clothes that he had bought as “gifts” for her.
According to the criminal complaint and documents filed in court, on June 22, 2015, EVANS was apprehended shortly after he arrived at the Bloomington hotel at which he had planned to engage in illicit sexual relations with the 13-year-old female.
This case is the result of an investigation conducted by Homeland Security Investigations with the assistance of the Bloomington Police Department.
This case is being prosecuted by Assistant United States Attorney Kevin S. Ueland.
Defendant Information:
JEFFREY SCOTT EVANS, 51
Blaine, Tenn.
Charges:
- Traveling with the intent to engage in illicit sexual conduct, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Springfield Man Sentenced to 60 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for sexually exploiting two children to produce child pornography.
Ronald Mazza, 34, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 60 years in federal prison without parole.
Mazza pleaded guilty to two separate counts of using two children, identified as “Jane Doe” and “John Doe,” to produce child pornography between Aug. 1 and Dec. 1, 2013. Mazza also pleaded guilty to one count of receiving and distributing child pornography over the Internet.
Mazza was arrested on Dec. 3, 2013, when his wife reported to the Springfield, Mo., Police Department that she found images of child pornography on his computer. When officers arrived at their residence, she showed them images of a 3-year-old victim and a 5-year-old victim on Mazza’s computer. As the officers were in the process of seizing the computer, Mazza arrived at the home and was immediately placed under arrest. He has remained in federal custody without bond since his arrest.
According to court documents, investigators discovered approximately 432 images and 61 videos depicting child pornography, including the sexual exploitation of infants, on Mazza’s computer. Five videos and 53 images contained sexually explicit depictions of the two victims that Mazza produced. The National Center for Missing and Exploited Children has reported that Mazza’s images of those victims have been recovered in multiple unrelated child pornography investigations, indicating that those images are now circulating the Internet.
Mazza also faces state charges in Greene County Circuit Court for three counts of statutory sodomy, three counts of sexual exploitation of a minor, one count of statutory rape, one count of sexual misconduct involving a child, one count of promoting child pornography and 13 counts of possessing child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Spring Hill Man Pleads Guilty to Carjacking and RobberyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Wilson Antonio Lopez (32, Spring Hill) has pleaded guilty to carjacking and interference with commerce by robbery. He faces a maximum penalty of 15 years in federal prison for the carjacking count and up to 20 years in prison for the robbery count. A sentencing date has not yet been set.
According to the plea agreement, on March 17, 2015, Lopez approached a woman seated in a sport utility vehicle and grabbed her by the shirt. He then threatened to shoot the woman if she did not get out of the vehicle. When the woman attempted to reach for her keys, Lopez forced her out of the SUV and drove away.
On March 26, 2015, Lopez and two armed men robbed the Nebraska Food Market of nearly $10,000. As the three robbers fled, a bystander attempted to confront them and was shot in the neck. One of the robbers then shot Lopez. Lopez was apprehended by investigators a short distance away from the store.
This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, and the Hernando County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
Roswell Man Sentenced for Federal Narcotics Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Simon Nicholas Sais, 45, of Roswell, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 120 months in federal prison for his methamphetamine and cocaine trafficking convictions. Sais will be on supervised release for five years after completing his prison sentence.
Sais was arrested on Oct. 22, 2014, on a criminal complaint charging him with distribution of methamphetamine and cocaine. According to the complaint, between June 2013 and Aug. 2013, Sais sold approximately 359.4 grams of pure methamphetamine and approximately 43.5 grams of cocaine to an undercover agent working with the Lea County Drug Task Force (LCDTF) in Roswell and Hobbs, N.M. Sais subsequently was charged on Jan. 14, 2015, in a six-count indictment charging him with distributing methamphetamine on five occasions between June 2013 and Aug. 2013, and distributing cocaine in June 2013.
On Feb. 24, 2015, Sais pled guilty to the indictment, admitting that between June 26 and Aug. 13, 2013, he distributed methamphetamine and cocaine throughout Lea County and Chaves County, N.M. Sais pled guilty without the benefit of a plea agreement.
The conviction in this case was the result of an investigation by the Roswell office of the FBI and the Lea County Drug Task Force. The case was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Retired Indiana Principal Sentenced to Ten Years in Prison for Attempting to Entice a Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Jeffrey S. Katz, Chief, Boynton Beach Police Department (BBPD), announced the sentencing of defendant Dennis Blake, 62, of Delray Beach, Florida, in connection with his conviction for two counts of enticing a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b). After finding that Blake, a retired principal from Indiana, arranged to meet a minor to engage in sexual activity, U.S. District Judge Beth Bloom sentenced Blake to a 120 month term of imprisonment and a $200 special assessment. Upon release, Blake will serve a 10 year term of supervised release and will have to register as a sex offender.
Blake pled guilty to two counts of enticing a minor to engage in sexual activity on March 31, 2015. The evidence showed that Blake sent numerous sexually explicit messages via a web-based social media application to an undercover officer who posed as a 15 year-old boy. Blake then attempted to meet the person he believed to be a minor to engage in illegal sexual activity. Blake was arrested by Boynton Beach Police Officers and Special Investigators for the office of the State Attorney’s Sexual Predator Enforcement Unit after he drove to a location where he believed that he would pick up the 15 year old boy. Special Agents from ICE-HSI conducted further investigation into Blake’s cellular telephone which revealed another conversation Blake had with an actual 15 year-old boy who lived in Palm Beach County, Florida. Blake had exchanged numerous sexually explicit messages via another web-based social media application and traveled to the boy’s home to attempt to engage in sex with him.
This case was 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 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.
Mr. Ferrer and Mr. Aronberg commended the investigative and cooperative efforts of ICE-HSI and BBPD. The case was prosecuted by Assistant U.S. Attorney Brandy Galler and Special Assistant U.S. Attorney Gregory Schiller from the Palm Beach State Attorney’s Office.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Restaurant Owner Indicted with Violating Federal Tax LawsRead the Press Release
A federal grand jury in Milwaukee returned a 33-count indictment charging Paul Bouraxis and three members of his family with violating federal tax laws.
The indictment charges Paul Bouraxis (age 65), his wife Freida Bouraxis (age 60), their son, Andreas Bouraxis (age 38), and son-in-law, Reiad “Ray” Awadallah (age 44), all of whom reside in Franklin, Wisconsin, with conspiring to impede the Internal Revenue Service based on their skimming of cash from the receipts of three restaurants they operated: the Omega Burger restaurant, located on S. 27th Street in Franklin, the El Fuego restaurant located on W. Layton Avenue in Milwaukee, and the El Beso restaurant located on S. 74th Street, in Greenfield.
The indictment also alleges that the defendants paid restaurant employees in cash and failed to withhold or pay taxes on such wages. According to the indictment, the defendants concealed their actions by not depositing cash skimmed from the restaurants to bank accounts and, instead maintained a cash hoard of more than $1.7 million. Some of the skimmed cash was used to purchase jewelry and precious metals, including 33, 100-ounce bars of silver.
The indictment also charges Paul Bouraxis with 10 counts of tax evasion based on the tax return he filed for himself for 2010 and payroll tax returns he filed for Omega Burger. Andreas Bouraxis is also charge with 18 counts of tax evasion based on the tax return he filed for himself for 2010 and payroll tax returns he filed for El Fuego and El Beso. Awadallah is also charged with three counts of filing false tax returns based on the tax returns he filed for himself for the years 2009 – 2011.
Paul Bouraxis is also charged with bank fraud in connection with loans he obtained from Associated Bank. The indictment alleges that Paul Bouraxis defaulted on the loans and then re-negotiated the terms of the loans by concealing his true financial condition from the bank, including that he and his family had a cash hoard of more than $1.7 million and bank accounts in Greece with balances of more than $2 million. According to the indictment, Associated Bank lost more than $4 million as a result of this scheme.
Based on these charges, Paul Bouraxis faces up to 85 years in prison and fines of up to $3.75 million. Freida Bouraxis faces up to 5 years in prison and a fine of up to $250,000. Andreas Bouraxis faces up to 19 years in prison and fines of up to $4.75 million. Reiad Awadallah faces up to 14 years in prison and fines of up to $1 million. The indictment also seeks to forfeit more than $1.7 million in currency and gold and silver coins and bars previously seized by federal agents.
Separately, a two-count indictment was returned against Gus Koutromanos (age 68) of New Berlin charging him with two counts of tax evasion. The indictment alleges that during 2012, Koutromanos, who was the part-owner of a restaurant known as Omega on Twenty Seven, located on S. 27th Street in Milwaukee, paid restaurant employees more than $385,000 in cash, from which he did not withhold income or payroll taxes. Koutromanos faces up to 10 years in prison and fines of up to $500,000 if convicted
In addition, the government filed a plea agreement that had been reached with Scott Sherman (age 45), an accountant residing in Sheboygan. Under the terms of this plea agreement, Sherman will plead guilty to one count of filing a false federal income tax return. Sherman, who provided accounting and bookkeeping services to Paul Bouraxis and his businesses, failed to report all of the income he earned from his accounting practice during the years 2007-2011. As a result, Sherman underpaid his income taxes by more than $48,000.
Sherman faces up to three years in prison and a fine of up to $250,000. Sherman has agreed to make full restitution to the IRS for the unpaid taxes, penalties and interest, which is presently estimated to be approximately $93,000. As part of his plea agreement, Sherman has also agreed to cooperate with the government in its investigation and prosecution of this and related matters.
These matters were investigated by Special Agents from the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. The prosecution is assigned to Assistant United States Attorneys Matthew Jacobs and Richard Frohling.
“This indictment should serve as a warning to those who choose to actively engage in illegal schemes to evade their income and payroll tax obligations,“ said Shea Jones, Special Agent in Charge of IRS Criminal Investigation’s St. Paul Field Office. “Using cash in an attempt to conceal illegal activity will not deter IRS Criminal Investigation’s Special Agents from vigorously pursuing those who threaten the integrity of our nation's tax system.”
# # # # #
Pope County Man Convicted on Methamphetamine Related ChargesRead the Press Release
A Pope County man was convicted on June 23, 2015, on methamphetamine related charges following a two day jury trial, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Colt V. Lynn, 30, of Golconda, Illinois, was convicted following a two day jury trial on both counts in a federal indictment. Count 1 charged that from January 11, 2013, until on or about January 15, 2013, in Pope, Union, and Saline Counties, Lynn knowingly conspired to manufacture methamphetamine. Count 2 charged that from January 11, 2013, until on or about January 15, 2013, in Pope, Union, and Saline Counties, Lynn knowingly and intentionally possessed pseudoephedrine pills knowing they would be used to manufacture methamphetamine.
With respect to each Count, Lynn faces up to 20 years in federal prison, up to $1,000,000 fine, and supervised release of at least 3 years.
Sentencing is scheduled during September 2015, at the United States Courthouse in Benton, Illinois.
The investigation in this case was conducted by the Pope County, Illinois, Sheriff’s Department, The Pope County, Illinois, State’s Attorney’s Office, The Pope County, Illinois, Probation Office, The Golconda, Illinois, Police Department, the Massac County, Illinois, Sheriff’s Department, and the Illinois State Police.
The case is being handled by Assistant United States Attorney Thomas E. Leggans.
Owners of Orlando Health Care Clinic Plead Guilty to Engaging in $2.5 Million Medicare Fraud SchemeRead the Press Release
Husband and wife owners of an Orlando health care clinic pleaded guilty today to engaging in a $2.5 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida and Special Agent in Charge Shimon R. Richmond of the Florida Region of U.S. Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
Juan Carlos Delgado, 58, and Nereyda Infante, 48, both of Orlando, Florida, each pleaded guilty to conspiracy to commit health care fraud before U.S. District Judge Paul G. Byron of the Middle District of Florida. Sentencing hearings are scheduled for Sept. 29, 2015.
Delgado and Infante owned and operated several health care clinics in Orlando, Florida, under variations of the name Prestige Medical. According to admissions made in connection with their guilty pleas, between February 2012 and September 2014, the defendants fraudulently billed Medicare approximately $2.5 million on behalf of the Prestige clinics for services that never were administered. Specifically, Delgado and Infante admitted to billing Medicare over $1.2 million for pentostatin, an expensive anticancer chemotherapeutic medication used to treat Leukemia despite never administering any pentostatin.
The case is being investigated by HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Middle District of Florida. The case is being prosecuted by Trial Attorney Andrew H. Warren of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.
Juan Carlos Delgado Plea Agreement
Nereyda Infante Plea Agreement
North Carolina Woman Charged with Tax EvasionRead the Press Release
Marilyn McDaniel, 67, of Garner, North Carolina, was charged by indictment with two counts of attempt to evade or defeat tax, in violation of Title 26, United States Code, Section 7201. If convicted, the defendant faces a maximum statutory sentence of ten years in prison.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to the indictment, in the calendar year 2009, McDaniel willfully attempted to evade and defeat tax by failing to pay the Internal Revenue Service (IRS) at least $200,664 in federal income tax due based on funds that she diverted from RGB Group, Inc. and RLM Services, Inc., to personal bank accounts she controlled. For calendar year 2010, McDaniel willfully prepared and caused to be prepared a false and fraudulent U.S. Individual Income Tax Return, Form 1040, on behalf of herself, which was filed with the IRS, indicating that her taxable income for the calendar year was approximately $15,577 when she knew that her taxable income was substantially in excess of what she reported.
McDaniel had her initial appearance on June 23, 2015, before United States Magistrate Judge Alicia M. Otazo-Reyes.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Niagara Falls Man Sentenced on Drug ChargesRead 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 Louis J. Carr, 42, of Niagara Falls, NY, who was convicted of distribution of hydrocodone, was sentenced to two years probation by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that the defendant was employed as a front desk administrator at a local dental practice. Between March and September 2014, Carr forged approximately 75 prescriptions for hydrocodone. The defendant created, printed, and then deleted the prescriptions from the office computer system. Carr used a stamp with the doctor’s signature to authorize the prescriptions. Subsequently, the defendant sold the forged prescriptions for $50-$60 to other individuals.
The sentencing is the culmination of a joint investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
New Orleans Woman Sentenced to 15 Months for Theft of Social Security FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LAVERNE ROSE, age 69, of New Orleans, was sentenced today after previously pleading guilty to a one-count Bill of Information for theft of government funds.
U.S. District Judge Kurt D. Engelhardt sentenced ROSE to 15 months incarceration, to be followed by 3 years of supervised release. ROSE was also ordered to pay full restitution.
According to court documents, ROSE admitted that she stole $282,400 from the Social Security Administration over the course of 23 years. ROSE jointly held a bank account with her father, who died in 1990. Unaware of ROSE’S father’s death, the Social Security Administration continued wiring retirement benefits for him to the account. ROSE received and spent the benefits until 2014, when the Social Security Administration learned that ROSE’S father had died. ROSE admitted that she knew the payments should have ceased and that they did not belong to her.
U.S. Attorney Polite praised the work of the United States Social Security Administration - Office of the Inspector General in investigating this matter. Assistant U.S. Attorney Chandra Menon was in charge of this prosecution.
New Orleans Woman Sentenced for Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CAROLYN TREAUDO, age 54, a of New Orleans, was sentenced today after previously pleading guilty to a one-count Bill of Information for the theft of $94,840 in government funds.
U.S. District Judge Kurt D. Engelhardt sentenced TREAUDO to 4 years’ probation, 6 months of home confinement, and a $10,000 fine. TREAUDO has already made full restitution to the Governor's Office of Homeland Security and Emergency Preparedness (GOHSEP).
According to court documents, TREAUDO had admitted to stealing approximately $94,840 from the Federal Emergency Management Agency during 2009 and 2010. The funds were administered by GOHSEP under a program to return disaster-affected locations, including schools, to pre-disaster conditions by reimbursing expenses and paying replacement costs.
U.S. Attorney Polite praised the work of the Department of Homeland Security - Office of the Inspector General in investigating this matter and thanked the Louisiana Legislative Auditor for their assistance. Assistant U.S. Attorney Chandra Menon was in charge of this prosecution.
New Jersey man convicted of oxycodone traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Marshall County, West Virginia resident Dennis Ferretti, 37, originally of Wenonah, New Jersey, was convicted today of prescription painkiller trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Throughout 2014 and 2014, Ferretti conspired with other individuals to possess and distribute oxycodone in Wetzel and Marshall Counties in West Virginia. He pled guilty today to one count of “Drug Conspiracy - Oxycodone.” He faces between up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the West Virginia State Police let the investigation.
Senior U.S. District Judge Frederick P. Stamp presided.
Nebraska Man Sentenced in Missoula to More than 16 Years in Prison for Child Porn CrimeRead the Press Release
MISSOULA – Tony Gustafson, 48, of Hastings, Nebraska, was sentenced today to 200 months in federal prison, followed by lifetime supervised release, for conspiracy to advertise child pornography. Gustafson was also required to forfeit his computer, hard drives, a USB device, and 30 VHS tapes that were involved in the crime. Chief U.S. District Court Judge Dana Christensen sentenced Gustafson following a February 9, 2015, change of plea hearing, in which Gustafson pleaded guilty to the offense.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have proven that an invitation-only online bulletin board, referred to as Dark Moon, was created in 2011. It allowed members to advertise and exchange images of child pornography. In approximately 2012, Gustafson became an active member of the bulletin board and continued to be an active member in a more advanced role as of April 19, 2013. Gustafson requested child pornography from other members while on the bulletin board. He also responded to and commented on posts of child pornography on the board. Law enforcement analyzed Gustafson’s digital devices and other evidence, which revealed that he used hard drives, a computer, a USB storage device, and 30 VHS tapes in commission of the crime. Gustafson was ordered to forfeit those items at the sentencing.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children. Investigative agencies in the case include the FBI, Homeland Security Investigations, and Montana Division of Criminal Investigation.
Assistant United States Attorney Cyndee Peterson prosecuted this case along with Maureen Cain, of the U.S. Department of Justice Child Exploitation & Obscenity Section. Because there is no parole in the federal system, Gustafson will have to serve at least 85% of his sentence before he is released from prison.
Montgomery Man Convicted for Illegal Gun Sales on Darknet SitesRead the Press Release
Montgomery, Alabama – A Montgomery man was convicted on June 19, 2015 for unlicensed firearms trafficking, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
Following a week-long trial, Michael Albert Focia, 48, was convicted on one count of dealing in firearms without a federal firearms license and two counts of transferring a firearm to an out-of-state resident. Based on the evidence introduced at trial, Focia operated as a weapons vendor on “Black Market Reloaded” and “Agora,” both of which were underground marketplaces accessible only when using anonymous encrypted internet browsing software.
During the investigation, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) posed as gun buyers on these two Darknet websites and were able to negotiate for the sale of two guns from Focia. After agreeing to sell the guns, Focia shipped them from Alabama to Nebraska and New Jersey. In the case of the New Jersey gun, evidence at trial showed that Focia’s fingerprint was on the gun’s packaging.
Focia was also connected at trial to at least 15 to 25 additional gun sales based on information obtained from the Agora website. Focia’s sentencing hearing has been set for October 15, 2015, and he is facing a maximum sentence of 15 years in federal prison.
"ATF’s priority to reduce violent crime includes leveraging technology to curb the illegal transfer of firearms through the Internet," stated ATF Special Agent in Charge Steven L. Gerido.
“This is another example of the U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, and Firearms catching criminals who transport firearms illegally,” said Postal Inspector-in-Charge Adrian Gonzalez, Houston Division. “Strict federal laws protect the U.S. Mail when firearms are shipped, and postal inspectors will continue to bring to justice anyone violating those laws.”
“Preventing the illegal sale of firearms is a critical part of our war on violent crime,” stated U.S. Attorney Beck. “I applaud the great work of our federal, state, and local law enforcement partners who identify and investigate gun traffickers. All too often, illegal gun sales place firearms in the hands of criminals and make our communities more dangerous.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Postal Inspection Service, with assistance from the Federal Bureau of Investigation and the Montgomery County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Gray M. Borden and Jonathan Ross.
Midway woman sentenced in federal court for obtaining drugs by fraudRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that Olivia Dixon, 31, of Midway, West Virginia was sentenced today in federal court in Beckley to eight months in federal prison, followed by a one year term of supervised release. Dixon previously pled guilty in March of 2015, to acquiring hydromorphone and morphine sulfate by fraud. Dixon, a former nurse at Raleigh General Hospital in Beckley, West Virginia, admitted that on November 10, 2014, she stole pain medications intended for patients, including morphine, for her own personal use. This case was investigated by the Beckley Raleigh County Drug and Violent Crime Task Force and is being prosecuted under the Beckley Pill Initiative directed by the United States Attorney’s Office.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
Mexican National Arrested in New Mexico on Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Gilberto Galvan-Gonzalez, 37, a Mexican national illegally in the United States, made his initial appearance today in federal court in Las Cruces, N.M., on a criminal complaint charging him with possession of methamphetamine with intent to distribute. Galvan-Gonzalez remains in federal custody pending a preliminary hearing and a detention hearing which have yet to be scheduled.
Galvan-Gonzalez was arrested yesterday after U.S. Border Patrol (USBP) agents allegedly located him entering the United States near Santa Teresa, N.M., while carrying approximately 3.16 pounds of methamphetamine concealed inside his backpack. According to the criminal complaint, Galvan-Gonzalez allegedly was paid $1,500.00 to carry the methamphetamine from Mexico to the United States.
If convicted on the charge in the criminal complaint, Galvan-Gonzalez faces a statutory mandatory minimum of ten years and a maximum of life imprisonment, and will be deported following his incarceration. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Santa Teresa Station of the U.S. Border Patrol and the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Mark Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Marshall County man convicted of heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – George N. Sidiropolis, 35, of McMechen, West Virginia, was convicted today of heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Throughout 2014 and 2015, Sidiropolis participated in a drug distribution operation in which heroin was transported across state lines from Pittsburgh, Pennsylvania into Ohio and Marshall Counties in West Virginia, as well as locations in Ohio, for redistribution and sale.
Sidiropolis pled guilty today a criminal Information charging him with one count of “Conspiracy to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James E. Seibert presided.
Man Sentenced to over 60 Years in Prison for Robbery, Firearm OffensesRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez today sentenced Richard Antonio Hodge, Jr., 30, of St. Thomas, to over 60 years in prison for Hobbs Act robbery, discharge of a firearm during the commission of a crime of violence, and related offenses, announced United States Attorney Ronald W. Sharpe.Judge Gomez also sentenced Hodge to four years of supervised release, and ordered him to pay $300 in special assessments.
“Justice has been done,” U.S. Attorney Sharpe said. “This violent and brazen criminal conduct has no place in a civilized society and will not be tolerated.”
On June 11, 2014, after a three-day jury trial, Hodge was convicted of the armed robbery and shooting of a Ranger American Armored Service messenger and his supervisor on December 3, 2013 in the Lockhart Gardens Shopping Center. Hodge was convicted of the following offenses:
- Interfering with commerce by robbery (federal Hobbs Act robbery), for which he was sentenced to 70 months;
- Two counts of discharge of a firearm during the commission of a crime of violence, for which he was sentenced to a total of 35 years;
- Three counts of unauthorized possession of a firearm during the commission of a crime of violence, for which he was sentenced to a total of 15 years.
- Two counts of assault with intent to commit murder, for which he was sentenced to a total of five years;
- Robbery first degree, for which he was sentenced to five years, and
- Reckless endangerment, for which he was sentenced to five years.
The Court ordered Hodge to serve the sentences for the two counts of assault, robbery first degree and reckless endangerment concurrently.
According to the evidence presented at trial, on December 3, 2013, a messenger for Ranger American Armored Service went to Kmart at Lockhart Gardens Shopping Center to deliver and retrieve U.S. currency for deposit at a bank. The messenger entered Kmart, delivered coins, and picked up $33,550 to take to the bank. While in Kmart, the messenger also picked up $4,700 from the AT&T kiosk. After leaving the store, the messenger stopped to talk to his supervisor, who was standing a short distance from the entrance. Hodge ran up to the messenger, shot him in the back, hip and wrist, and ripped the money bag from his hands. Hodge then ran through the parking lot and into the Oswald Harris Court housing community where he was chased by an offduty Virgin Islands police officer and the messenger’s supervisor. Hodge was apprehended approximately 45 minutes later hiding in dense brush behind Oswald Harris Court. The messenger and supervisor were taken to the Roy Lester Schneider Hospital where both were treated for gunshot wounds. Both men recovered from their injuries. The stolen money and firearm used in the crimes were never recovered.
U.S. Attorney Sharpe commended the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Virgin Islands Police Department and the Federal Bureau of Investigations for their outstanding work in this case. He also commended Assistant U.S.Attorney Nelson L. Jones, who prosecuted the case, and the off-duty police officer who chased the defendant into Oswald Harris Court after witnessing the robbery and shooting.
Man Sentenced to Federal Prison for Setting Fire to Landmark Portland RestaurantRead the Press Release
PORTLAND, Ore. – Marcus Allen Tyler, 31, of Portland, was sentenced today to 71 months in federal prison by U.S. District Judge Michael W. Mosman. In November 2014, Tyler pled guilty to the felony offense of arson. Tyler is currently in the custody of the U.S. Marshals Service.
After Tyler has completed his 71 months in prison, he must serve three years of federal supervised release. While on supervised release, Tyler will be required to pay restitution for the damage caused by the fire.
According to statements made in federal court, Tyler was the kitchen manager at Pal’s Shanty Tavern, located at 4630 NE Sandy Boulevard, in Portland, Oregon. Tyler had worked for Pal’s Shanty Tavern for five years, but he became upset with his employers because he believed that the waiters were not sharing enough of their tips with him.
In the early morning hours of November 15, 2013, Tyler used his key to enter Pal’s Shanty Tavern after it had closed for the night. Tyler spread gasoline in the kitchen to start a fire in the restaurant. Tyler intended for his arson to conceal a separate crime that night, which was a plan to steal an ATM that was located inside of Pal’s Shanty Tavern. After Tyler ignited the gasoline with a lighter, he slipped and fell on the gasoline that he had poured, and he was severely burned. Firefighters were called to respond to the fire, and it took 53 Portland firefighters to finally extinguish the fire, which destroyed Pal’s Shanty Tavern.
Tyler, who had fled the scene before firefighters arrived, was eventually transported to the hospital. A police investigation almost immediately revealed Tyler’s involvement in the arson.
“This sentence holds the defendant responsible for the crime of arson and recognizes the impact on the community. The defendant’s criminal actions were a betrayal to the long time owners and the neighborhood, Pal’s Shanty has been a Portland landmark and meeting establishment since 1966,” said Acting U.S. Attorney Billy J. Williams. “My office commends the Portland Fire & Rescue Bureau for their investigation of this case.”
Pal’s Shanty Tavern was a family-owned business that had been operating in Northeast Portland’s Hollywood District since the 1960s. It has not reopened since the arson.
"This fire put a well-known Portland establishment, Pal's Shanty, out of business. The successful prosecution of arson brings some closure to the owners, employees, and all the people who loved this local establishment,” said, Erin Janssens, Chief of Portland Fire & Rescue Bureau.
This case was investigated by the Portland Fire & Rescue Bureau and the Portland Police Bureau. The case was prosecuted by Assistant U. S. Attorneys Pamala R. Holsinger and Craig J. Gabriel.
Lubbock Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — Michael Dennis Powers, 47, of Lubbock, Texas, appeared this morning before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to one count of possession of prepubescent child pornography, announced John R. Parker, Acting U.S. Attorney for the Northern District of Texas.
Powers faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Powers remains on bond pending his sentencing hearing, which will be scheduled at a later date.
According to documents filed in the case, Powers admitted using a computer at his residence to, among other things, search the Internet for child pornography. In the course of searching for this material, Powers located, downloaded, and viewed numerous files containing child pornography. Powers knew that some of those files were produced using prepubescent minors engaging in sexually explicit conduct. On April 9 Powers was in possession of three computer disks containing the child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Lubbock Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Lubbock Man Admits Posing as a Female “Modeling Agent” to Lure Teen and Take Sexually Explicit Photos of HerRead the Press Release
LUBBOCK, Texas — Amadeo Cruz Torres, 24, of Lubbock, Texas, appeared this afternoon before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to one count of production of child pornography, announced John R. Parker, Acting U.S. Attorney for the Northern District of Texas.
Torres, who has been in custody since his arrest, faces a statutory penalty of not less than 15 years and up to 30 years in federal prison, and a $250,000 fine. A sentencing date was not set.
According to documents filed in the case, Torres met the teenage minor, “Jane Doe,” at South Plains Mall in Lubbock on June 17, 2014, after he had been communicating with her online, via Facebook, about the possibility of modeling. Torres first represented himself to be a female modeling agent named “Amber.”
The teenage victim’s mother took Jane Doe to the mall to meet the supposed modeling scout. Jane Doe was advised that she would be meeting with “Shane,” the defendant. Jane Doe was advised to meet with Torres without a parent or friend to minimize distractions.
After meeting with Jane Doe in the mall’s food court, Torres took her to a family restroom and locked the door. He took a video of her while he instructed her to engage in various poses. Eventually, Torres directed her to disrobe completely so that he could film a nude video. At one point during the “modeling session,” Torres convinced her to let him touch her in a sexually explicit manner to verify that she was not hiding drugs.
Torres was arrested the following day at South Plains Mall where he had gone to meet another minor female. Officers seized his video camera, cell phone and tablet computer.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Lubbock Police Department and the Federal Bureau of Investigation investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Long Island Doctor Pleads Guilty to Health Care Fraud and Obstruction of Medicare AuditRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Melvin Cwibeker, a doctor of chiropractic medicine from Nassau County, New York, pled guilty to healthcare fraud and obstruction of a federal audit, and he agreed to pay restitution and a $500,000 forfeiture.
The plea was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Scott Lampert, Special Agent-in-Charge, Health of Human Services, Office of Inspector General (HHS-OIG), New York Region.
“Dr. Cwibeker violated his oath and the law by hiring individuals to create fictitious patient records which were submitted to Medicare to obstruct its audit of his chiropractic billings,” stated Acting United States Attorney Currie. “Health care providers who falsely bill for care are on notice that they will face serious consequences.”
FBI Assistant Director-in-Charge Rodriguez stated, “Financial crimes, like the ones allegedly committed by Dr. Cwibeker when he fictitiously billed Medicare for treatments not provided, may appear victimless. However, these crimes impact society, through rising costs and diminishing services provided. By allegedly profiting over $4.3 million through illegitimate claims, Dr. Cwibeker put greed above his license and patient care.”
“Dr. Cwibeker engaged in a greed-fueled fraud scheme that undermined our health care system and the vulnerable individuals it serves,” said HHS-OIG Special Agent-in-Charge Lampert. “HHS-OIG, together with our law enforcement partners, will continue to vigorously pursue those who steal from government health programs for personal gain.”
Between 2006 and 2012, Dr. Cwibeker and his co-conspirators fraudulently billed Medicare more than $7 million for treatments never given to residents of assisted living facilities, and Dr. Cwibeker received over $4.5 million from such billings. On one day alone, New Year’s Eve in 2006, Dr. Cwibeker billed Medicare for chiropractic treatments he purportedly gave to 133 patients at various assisted living facilities. Between 2009 and 2012, Dr. Cwibeker employed three other chiropractors to provide chiropractic care to residents of adult homes and assisted living facilities in Brooklyn, Queens, and Westchester – and trained those chiropractors not to provide the patient care that was required under Medicare. Those three chiropractors were indicted with Dr. Cwibeker and previously pled guilty to health care fraud charges. Each time Dr. Cwibeker was audited by Medicare, he hired others to create fictitious patient records to support his earlier billings and then then sent the fictitious records to Medicare.
Dr. Cwibeker is scheduled to be sentenced on November 6, 2015 before United States District Judge Joanna Seybert, and he faces a maximum of 15 years in prison together with restitution, a forfeiture of $500,000, and potential fines of twice the gross gain from his scheme.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles P. Kelly and Senior Investigation Counsel Burton T. Ryan, Jr. are in charge of the prosecution.
The Defendant:
Name: MELVIN CWIBEKER
Age: 60
Residence: Cedarhurst, New York
E.D.N.Y. Docket No.: 12-CR-632 (JS)
Lincoln County Career Offender Sentenced to 8 Years in PrisonRead the Press Release
EUGENE, Ore. – Patrick Ball, 38, of Toledo, Oregon, was sentenced today by Chief U.S. District Judge Ann Aiken to 96 months in prison, to be followed by a three-year term of supervised release. The federal charges were brought after the Lincoln County Police and Toledo Police Department identified Ball as a methamphetamine trafficker and began an investigation. After a traffic stop, he was found with 107 grams of actual methamphetamine and arrested.
According to the prosecutor, Ball was a career offender because he had prior drug delivery convictions. He also had several convictions for property crimes including Burglary I, Burglary II, and Theft I. He was on supervision at the time he was found with the drugs, yet he was pedaling drugs in the local community. “The impact of methamphetamine on our local communities cannot be underscored and this case makes it clear that we will continue to aggressively seek out these types of cases for prosecution,” said Acting U.S. Attorney Billy J. Williams.
This case was investigated by the Lincoln County Police Department, the Toledo Police Department, the Newport Police Department and the DEA. This case was prosecuted by Assistant U.S. Attorney Amy Potter.
Justice Department Reaches Agreement with Maryland Day Camp to Ensure Equal Rights for Children with EpilepsyRead the Press Release
The Justice Department signed a settlement agreement today with Camp Bravo, a day camp that operates in Towson, Maryland, just outside Baltimore. The settlement resolves allegations that Camp Bravo violated a child’s civil rights by denying her admission to the camp because she has epilepsy, in violation of the Americans with Disabilities Act (ADA). Because the child would need emergency medication administered if she were to have a prolonged or acute repetitive seizure, Camp Bravo denied her admission. Though the medication, Diastat, is designed to be administered by trained laypersons and could save the child’s life, Camp Bravo would not permit non-medical staff to administer the medication and later refused to permit the camp nurse to accompany the child on field trips or bus rides. As a result, the child was not able to attend Camp Bravo for two consecutive summers.
Title III of the ADA prohibits discrimination on the basis of disability by private camps and child care programs. Under the ADA, such entities must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability, unless a modification would fundamentally alter the nature of the goods and services. It generally will be a reasonable modification required by title III of the ADA for certain public accommodations, such as camps and child care programs, to train laypersons to administer Diastat.
“Equal access to camps and child care programs is essential to children and parents across the country,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “These programs allow children with disabilities to learn and play with their peers and develop important social skills. The Civil Rights Division will not allow the exclusion of children with seizure disorders where life-saving medication can be safely administered by trained laypersons.”
“Federal law prohibits businesses from discriminating against children with disabilities,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland.
Under the agreement, Camp Bravo will admit the child for all future camp sessions of the child’s choosing, as long as she is of eligible age, and will pay $8,000 to the family to compensate them for Camp Bravo’s failure to admit the child when she previously applied. In addition, Camp Bravo will train its staff on the ADA and, if a child with epilepsy is enrolled in the camp, on epilepsy and seizures. The camp will also adopt and enforce a nondiscrimination policy, as well as an emergency anti-seizure medication administration policy and procedure. The department will monitor Camp Bravo’s compliance with the agreement for three years.
ADA enforcement is a top priority of the Justice Department’s Civil Rights Division. Those interested in finding out more about this settlement or the obligations of camps and child care programs under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Justice Department Files Consent Decree to Ensure Equal Educational Opportunities for All English Learner Students in San FranciscoRead the Press Release
The Justice Department announced that it has sought court approval today of a comprehensive modified consent decree in the landmark case of Lau v. Nichols, in which the Supreme Court held that public schools must provide meaningful access to their educational programs for English Learner (EL) students. The proposed modified consent decree would require the San Francisco Unified School District (SFUSD) to provide language services to the more than 16,000 EL students enrolled in its 105 regular education schools and five court (i.e., serving detained and incarcerated students) and county schools.
The proposed modified consent decree was jointly filed by the department, SFUSD and the private plaintiffs, and would replace a 2008 court order. The proposed modified consent decree resulted from monitoring by the department and the private plaintiffs, and from SFUSD’s own recognition that the 2008 order needed to be updated to reflect current circumstances.
The proposed modified consent decree would require the district to implement comprehensive measures to ensure that ELs have equal opportunities to succeed academically in district educational programs. If approved by the court, the modified consent decree would require SFUSD to:
- ensure that EL students are appropriately identified and placed when they begin school;
- provide families with a suite of service options for their EL students’ education;
- ensure that EL students with disabilities receive language programs and services;
- require employees who serve EL students to have training appropriate to their roles;
- protect the educational rights of the district’s most at-risk and vulnerable EL students who are learning in alternative education or juvenile justice settings;
- communicate with Limited English Proficient families in a language they understand; and
- conduct robust monitoring.
“Today, the San Francisco Unified School District made important strides toward promoting the success of every student from the moment the child enters the district,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “As the American dream is rooted in education, we commend the district for taking this critical step toward ensuring that all students, no matter their language background, have an equal opportunity to access that dream.”
“The department applauds the Superintendent and Board of Education for agreeing to take these significant steps to fulfill the promise of the Supreme Court's holding in Lau,” said U. S. Attorney Melinda Haag of the Northern District of California. “Faithful implementation of this decree will ensure that all EL students are appropriately identified and served, and that Limited English Proficient families have an equal ability to participate in their child’s education.”
The enforcement of Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 1974 are top priorities of the Justice Department’s Civil Rights Division. Additional information about these statutes and the obligations of school districts and states to EL students is available at http://www.justice.gov/crt/about/edu/documents/elsguide.php, and general information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Files Consent Decree to Ensure Equal Educational Opportunities for All English Learner Students in San FranciscoRead the Press Release
SAN FRANCISCO – The Justice Department announced that it has sought court approval today of a comprehensive modified consent decree in the landmark case of Lau v. Nichols, in which the Supreme Court held that public schools must provide meaningful access to their educational programs for English Learner (EL) students. The proposed modified consent decree would require the San Francisco Unified School District (SFUSD) to provide language services to the more than 16,000 EL students enrolled in its 105 regular education schools and five court (i.e., serving detained and incarcerated students) and county schools.
The proposed modified consent decree was jointly filed by the department, SFUSD and the private plaintiffs, and would replace a 2008 court order. The proposed modified consent decree resulted from monitoring by the department and the private plaintiffs, and from SFUSD’s own recognition that the 2008 order needed to be updated to reflect current circumstances.
The proposed modified consent decree would require the district to implement comprehensive measures to ensure that ELs have equal opportunities to succeed academically in district educational programs. If approved by the court, the modified consent decree would require SFUSD to:
- ensure that EL students are appropriately identified and placed when they begin school;
- provide families with a suite of service options for their EL students’ education;
- ensure that EL students with disabilities receive language programs and services;
- require employees who serve EL students to have training appropriate to their roles;
- protect the educational rights of the district’s most at-risk and vulnerable EL students who are learning in alternative education or juvenile justice settings;
- communicate with Limited English Proficient families in a language they understand; and
- conduct robust monitoring.
“The department applauds the Superintendent and Board of Education for agreeing to take these significant steps to fulfill the promise of the Supreme Court's holding in Lau,” said U. S. Attorney Melinda Haag of the Northern District of California. “Faithful implementation of this decree will ensure that all EL students are appropriately identified and served, and that Limited English Proficient families have an equal ability to participate in their child’s education.”
“Today, the San Francisco Unified School District made important strides toward promoting the success of every student from the moment the child enters the district,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “As the American dream is rooted in education, we commend the district for taking this critical step toward ensuring that all students, no matter their language background, have an equal opportunity to access that dream.”
The enforcement of Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 1974 are top priorities of the Justice Department’s Civil Rights Division.
Judge Imposes Death Sentence for Boston Marathon BomberRead the Press Release
Boston – A federal judge in Boston formally sentenced Dzhokhar A. Tsarnaev today for his role in using weapons of mass destruction at the 2013 Boston Marathon. United States District Judge George A. O’Toole imposed a sentence of death and multiple consecutive life sentences.
In May 2014, a federal jury in Boston recommended that Dzhokhar A. Tsarnaev be sentenced to death. The counts on which the jury recommended a death sentence all related to the pressure cooker bomb Tsarnaev planted and detonated in front of the Forum restaurant, killing Lingzi Lu and Martin Richard. The same jury convicted Tsarnaev on all 30 counts of the indictment on April 8, 2015.
Tsarnaev, 21, a U.S. citizen formerly residing in Cambridge, Mass., was convicted of use of a weapon of mass destruction resulting in death and conspiracy; bombing of a place of public use resulting in death and conspiracy; malicious destruction of property resulting in death and conspiracy; use of a firearm during and in relation to a crime of violence; use of a firearm during and in relation to a crime of violence causing death; carjacking resulting in serious bodily injury; interference with commerce by threats or violence; and aiding and abetting.
Beginning no later than February 2013, Tsarnaev and his brother, Tamerlan Tsarnaev, conspired to detonate improvised explosive devices (IEDs), bomb places of public use, and destroy property. On April 15, 2013, during the 117th running of the Boston Marathon, the brothers placed two pressure cooker bombs filled with shrapnel among the crowds of spectators on Boylston Street and then detonated the bombs seconds apart, killing three people, maiming 17, and injuring hundreds more. The brothers fled the scene in the chaos of the destruction. Three days later, on April 18, Tsarnaev and his brother, armed with five IEDs and a Ruger semiautomatic pistol that Tsarnaev had borrowed from a friend, drove to the MIT campus where they shot and killed MIT Police Officer Sean Collier and attempted to steal his service weapon. Approximately 20 minutes later, they carjacked a Mercedes SUV, kidnapped the driver, and forced him to drive to a gas station, robbing him of $800 along the way. After the driver managed to escape, the brothers drove to Laurel Street and Dexter Avenue in Watertown, where they exploded additional IEDs and engaged in a firefight with Watertown police officers. During the stand-off, Tsarnaev drove the carjacked vehicle at three officers, attempting to kill them, and ran over his brother as he escaped. Tsarnaev hid in a winterized boat in a Watertown backyard until his apprehension and arrest the following night. His brother died from injuries sustained at the scene.
United States Attorney Carmen M. Ortiz; John Carlin, Assistant Attorney General of the Justice Department’s National Security Division; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Evans; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Michael Shea, Deputy Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement.
This investigation was conducted by the FBI’s Boston Division, Boston Police Department, Massachusetts State Police, Department of Justice’s National Security Division, and member agencies of the Boston Joint Terrorism Task Force, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, U.S. Marshals Service, Massachusetts Bay Transit Authority and others. In addition, the Watertown Police Department, the Cambridge Police Department, the MIT Police Department, the Boston Fire Department, the National Guard and police, fire and emergency responders from across Massachusetts and New England played critical roles in the investigation and response.
This case was prosecuted by Assistant U.S. Attorneys William Weinreb, Aloke Chakravarty, and Nadine Pellegrini of the U.S. Attorney’s Office for the District of Massachusetts's Anti-Terrorism and National Security Unit, and Trial Attorney Steve Mellin of the Justice Department’s Capital Case Section. Vital assistance was also provided by attorneys from the National Security Division’s Counterterrorism Section and the Criminal Division’s Capital Case Section.
Jacksonville Woman Indicted for Alien Smuggling, Labor Trafficking, and Sex Trafficking CrimesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Esthela M. Clark (46, Jacksonville) with alien smuggling, labor trafficking, and sex trafficking offenses. If convicted on all counts, she faces a maximum penalty of life in federal prison. The indictment also notifies Clark that the United States intends to forfeit two motor vehicles, which are alleged to have been used in the offenses.
According to court documents, Clark fraudulently induced a young woman from Mexico to travel illegally to the United States under the fraudulent promise and pretense that the woman would be paid to be a surrogate mother as part of a medically supervised and lawful surrogate pregnancy. After smuggling the woman into the United States, Clark began attempting various non-medical inseminations of the woman with the semen of Clark’s boyfriend and others. Clark performed these inseminations using a household syringe on the dining room floor of her residence. Once those efforts failed, Clark forced the victim to have sex with two strangers through threats of force and coercion. Shortly after the woman had arrived in the United States, Clark isolated her and confiscated her official forms of identification. For more than two years, Clark used force, threats of force, and also threatened abuse of the legal process to keep the woman in a perpetual state of involuntary servitude and forced labor. A concerned citizen rescued the young woman and contacted law enforcement.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff’s Office, and the United States Border Patrol. It will be prosecuted by Assistant United States Attorney Mac D. Heavener, III.
Inmate Sentenced to 15 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced inmate Joseph Young, a/k/a Monster, age 33, of Baltimore, today to 15 years in prison, followed by three years of supervised release, for participating in a racketeering conspiracy and drug conspiracy, involving the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC), and for money laundering conspiracy. Young was convicted on February 5, 2015, after a more than two month long jury trial.
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; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS); Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Marilyn Mosby.
According to trial testimony and court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building. Tavon White and other BGF leaders and members incarcerated at BCDC were involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (COs), who received payments, gifts, or a share of the profits.
Evidence presented at trial showed that Young was a high-ranking BGF member and a rival of Tavon White within BGF while he was incarcerated at BCDC beginning in early 2012. Young was expected to replace Tavon White as BGF’s leader inside the jail. In October and November 2012, Young sold marijuana, prescription pills, cell phones and tobacco that correctional officers smuggled into the jail. Young directed another inmate, Cyrus Beads, to buy marijuana at $350 an ounce and package it in one-gram bags, which he would sell for $50 inside BCDC. Young explained that they would make a $1,050 profit from each ounce. Young had a romantic relationship with Raylanair Reese, who lived outside the jail and supplied Young with cell phones and Percocet pills. Evidence at trial also showed that Correctional Officer Kimberly Dennis was a major smuggler of contraband for Young.
This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. Investigations are continuing.
Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers. Thirty-five defendants pleaded guilty and five defendants were convicted after trial. Three defendants were acquitted and one defendant died.
BGF leader Tavon White, age 37, previously pleaded guilty to his participation in the racketeering conspiracy and testified at the trial and was sentenced to 12 years in prison. Inmate Russell Carrington, a/k/ Rutt, age 34, of Baltimore, also a leader in the BGF gang, was convicted after trial and sentenced to 210 months in prison.
To date, 21 of the correctional officers have been sentenced to up to 42 months in prison. Outside supplier Raylanair Reese, age 33, and Correctional Officer Kimberly Dennis, age 27, both of Baltimore, pleaded guilty to their roles in the conspiracy and were sentenced to 34 months and two years in prison, respectively.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Humboldt County Juvenile Corrections Officer Pleads Guilty to Possession of Child PornographyRead the Press Release
SAN FRANCISCO, Calif. – Keith Monroe Wallace pleaded guilty today to possession of child pornography, announced U.S. Attorney Melinda Haag and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Tatum King.
Until he was arrested, Wallace, 53, of Eureka, Calif., was employed by the Humboldt County Juvenile Probation Office as a Supervising Juvenile Corrections Officer in the Northern California Regional Facility in Eureka. In connection with his guilty plea, Wallace admitted he knowingly possessed 600 or more visual depictions of prepubescent minors or minors who had not attained 12 years of age engaging in sexually explicit conduct. The images included depictions of sadistic or masochistic conduct or other depictions of violence.
According to court documents, federal law enforcement agents with HSI were led to Wallace as a result of an investigation into the sexual exploitation of children in the Northern District of California. On February 26, 2015, a federal search warrant was executed at Wallace’s residence in Eureka, California. HSI agents and Humboldt County District Attorney Investigators seized various computers and digital media storage devices pursuant to the search warrant. A forensic review of the computers and digital media storage devices seized from Wallace’s residence revealed the existence of videos and images depicting minors engaging in sexually explicit conduct. Wallace was taken into federal custody at the time of the execution of the search warrant.
Wallace was indicted by a federal grand jury on March 10, 2015, with one count of possession of child pornography, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2). Under the plea agreement, Wallace pleaded guilty to that count.
Wallace is currently being held in custody. His sentencing hearing is scheduled for September 9, 2015, at 10:00 a.m. before the Honorable Charles R. Breyer, U.S. District Judge, in San Francisco. The maximum statutory penalty for one count of possession of child pornography in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2), is 20 years in prison, a fine of $250,000, and restitution to the victims. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Claudia A. Quiroz is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation by the HSI Child Exploitation Investigations Group, as well as investigators from the Humboldt County District Attorney’s Office.
If members of the public have any information relevant to this investigation or regarding online child sexual exploitation crimes they are encouraged to call the ICE tip line at 1-866-347-2423 (1-866-DHS-2ICE).
Hampden Resident Sentenced to 2½ Years for Lying and Buying FirearmsRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Michael Campbell, 31, of Hampden, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr., to 2½ years in prison and 3 years of supervised release for conspiring to make false statements to a federal firearms licensee. He pleaded guilty to the charge on October 2, 2014.
According to court records, on two occasions in June 2012, Campbell went to Jimi’s Trading Center, a federal firearms licensee and dealer of firearms located in Brewer, Maine, and falsely completed federal firearms application forms certifying that he was the actual buyer of handguns, when, in fact, he had been asked to purchase them by people prohibited under federal law from buying them. Prior to each occasion, Campbell met with the prohibited persons, was told what handguns to buy and where to buy them, and was given cash to do so. After each purchase, he delivered the handguns to the prohibited persons.
The case was investigated by the Maine Drug Enforcement Agency, the Bureau of Alcohol Tobacco Firearms and Explosives (New Haven, Connecticut Office), and the New Haven Police Department.
Glen Daniel man sentenced for federal drug trafficking chargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that Michael Erwin Basham, 35, of Glen Daniel, was sentenced today to serve two years in federal prison, followed by a one year term of supervised release. Basham previously pled guilty in February of 2015, to using a telephone to arrange a sale of oxycodone to a person cooperating with law enforcement authorities. The phone call was made near Glen Daniel.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
Georgia Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that James Robert Underwood, 43, of Dalton, Georgia, and formerly of Old Orchard Beach, Maine, pled guilty today in U.S. District Court to failing to register as a sex offender.
According to evidence introduced at the plea hearing, in 1999, Underwood was convicted in Georgia of rape and other charges. He was sentenced to 10 years in prison and was released in 2009. The rape conviction required him to register under the Sex Offender Registration and Notification Act in Georgia and any other state where he established residency. In March 2012, Underwood established residency in Old Orchard Beach, but failed to register as required.
Underwood faces up to 10 years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the United States Marshals Service.
Former Public Health Care Employee Convicted of Selling More Than 400 Social Security Numbers Used in Fraudulent Tax Refund SchemeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that TA’SHA THOMAS, age 26, of Donaldsonville, Louisiana, pled guilty before Senior U.S. District Judge James J. Brady to access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
During the guilty plea hearing, THOMAS admitted to gaining access to personal identifying information of individuals in the COMPASS database through her work at the Ascension Parish Health Unit. She also admitted to taking the personal identifying information and selling it to Mona Hill, who in turn used the information to file fraudulent federal tax returns, ultimately receiving more than $400,000 based on such returns. As THOMAS admitted, between January and August of 2012, she sold more than 400 access devices to Mona Hill. In exchange, THOMAS was paid between $8,000 and $9,000. Mona Hill has been separately prosecuted and convicted by this office. Hill was sentenced to serve sixty-five months in federal prison and pay $491,268.18 in restitution to the IRS.
U.S. Attorney Green stated: “My office will continue to aggressively pursue criminals who commit identity theft and use those stolen identities to defraud the United States and line their own pockets. We look forward to continuing to work with our partners at IRS-CI and other agencies in the fight against such conduct.”
“We are pleased with the conviction of Ms. Thomas. The IRS will aggressively pursue individuals who are involved in stolen identity refund fraud,” said Jerome R. McDuffie, Special Agent-in-Charge, IRS Criminal Investigation. “This case should serve as a strong warning to those who are considering similar conduct. Law enforcement will relentlessly pursue those who steal the identities of unsuspecting individuals.”
This ongoing investigation is being conducted by the Internal Revenue Service’s Criminal Investigation Division. This matter is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Former New Hampshire Construction Company Owner Pleads Gulty to Tax EvasionRead the Press Release
WASHINGTON – A Hill, New Hampshire, man pleaded guilty today to three counts of tax evasion in the U.S. District Court in the District of New Hampshire, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney Donald Feith of the District of New Hampshire.
Ronald Martin formerly owned and operated Martin Construction in Northfield, New Hampshire, and employed between three to eight individuals at various times. In 2008, 2009 and 2010, Martin’s business earned a total of approximately $1.2 million in gross revenue, but Martin did not file any federal corporate or individual income tax returns for Martin Construction or for himself and did not pay any federal income tax in any of those years. Martin took steps to conceal the business revenue by directing that payments and invoices for selling scrap metal be made in the name of his nephew. He also only deposited a small fraction of the income earned from Martin Construction into the business’ bank account. Instead, he diverted a significant portion of the business income for personal expenditures. In addition to failing to file tax returns and to pay individual and business income taxes, Martin also failed to file any federal employment tax returns or pay over to the Internal Revenue Service (IRS) any federal employment taxes for any of his employees.
A federal grand jury in the District of New Hampshire indicted Martin on three counts of tax evasion in July 2014. Martin faces a statutory maximum sentence of five years in prison and a fine of $250,000 on each tax evasion count. Martin’s sentencing hearing is scheduled for Oct. 20. Martin currently is detained on unrelated pending state criminal charges.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Feith commended the special agents of IRS–Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Mark S. Zuckerman of the District of New Hampshire and Senior Litigation Counsel Corey J. Smith of the Tax Division, who are prosecuting the case.