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Monday 4 May 2015
Buffalo Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Charles Humphrey, 46, of Buffalo, NY, pleaded guilty to conspiracy to distribute over 500 grams of cocaine before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of five years, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that the defendant, along with co-defendants, distributed multiple quantities of cocaine between 2009 and January 2010. In addition, Humphrey sold a quantity of cocaine to a confidential source on January 13, 2010.
The defendant was arrested along with four others. Humphrey is the fourth defendant to be convicted.
The plea is the culmination of any investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for August 17, 2015 at 1:00 p.m. before Judge Arcara.
Box Elder Man Gets 20 Years in Prison for Strangulations, Rapes, Stabbing and AssaultsRead the Press Release
GREAT FALLS – Dallas Lawrence, 33, of Box Elder, Montana, was sentenced today to twenty years in prison after a Montana jury convicted him of seven felonies, including two rapes, two strangulations, two assaults with intent to commit murder and assault with a dangerous weapon. In addition to the twenty-year prison sentence, U.S. District Judge Brian Morris also sentenced Lawrence to five years of supervised release. There is no parole in the federal system.
Evidence presented at trial by Assistant United States Attorney Laura Weiss showed that Lawrence and the victim were in a verbally and physically abusive relationship. In September 2013, Lawrence stabbed the victim in her calf. She was found walking around Havre, Montana, and was taken to the ER, where medical personnel observed the stab wound. The victim told medical personnel that her boyfriend had stabbed her in the leg and that she was in an abusive relationship. She said Lawrence had also tried to break her arms and legs to keep her from leaving.
The evidence also showed that in March 2014, Lawrence strangled the same victim with a humidifier cord after asking her, “How do you want me to do you in, fast or slow?” The victim was able to slip two fingers under the cord, but she still couldn’t breathe. She managed to escape the cord. Lawrence continued to control the victim after that by making her stay in her room, and dictating where she went and who she was around. He kept the keys to the car and made threats to her about trying to leave him.
In May 2014, the defendant again strangled the victim after beating her. He asked her again if she wanted to die fast or slow. He gripped both hands around her neck and began to strangle her. She tried to slide away, but he kept strangling her to the point that she blacked out. Lawrence later told her he thought he had killed her and was going to hide her body in a crawlspace until he could find a place to bury it. During the same time period in early summer 2014, Lawrence forced the victim to have sex with him on two occasions.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Laura B. Weiss prosecuted the case.
Atwater Resident Pleads Guilty to Student Aid Fraud and Identity TheftRead the Press Release
FRESNO, Calif. — Sherise Lanelle Woolridge, 33, of Atwater, pleaded guilty today to mail fraud and aggravated identity theft for a scheme to obtain student aid grant funds and loans, United States Attorney Benjamin B. Wagner announced.
According to court documents, Woolridge participated in a scheme to defraud the United States Department of Education of student aid grants and loans. She submitted false financial aid applications to Axia College at the University of Phoenix and Capella University on behalf of students who did not intend to attend either school. She used stolen or wrongfully obtained personal identifying information for a person who did not know her identity would be used to apply for college financial aid. As a result of the scheme to defraud, more than $200,000 in grants and loans were disbursed.
This case is the product of an investigation by the U.S. Department of Education Office of Inspector General. United States Attorney Mark J. McKeon is prosecuting the case.
Woolridge is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on August 3, 2015. Woolridge faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for mail fraud, and a mandatory sentence of two years in prison for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Arizona Man Sentenced on Tax ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney William J. Hochul, Jr. announced today that Joseph DeRomanis, 39, of Phoenix, Arizona, who was convicted of tax evasion by filing false tax returns, was sentenced to six months home detention and five years probation by Chief U.S. District Judge Frank P. Geraci. The defendant was also ordered to pay restitution totaling $186,284 to the Internal Revenue Service.
Assistant U.S. Attorney John J. Field, who handled the case, stated that DeRomanis filed false tax returns for tax years 2004 through 2007. The returns resulted in the defendant obtaining fraudulent income tax refunds totaling $132,885.
The sentencing is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Appalachian Community Bank Vice President Sentenced to Federal Prison for Bank FraudRead the Press Release
GAINESVILLE, Ga. - William R. Beamon, Jr., a/k/a “Rusty” Beamon has been sentenced to three years, six months in federal prison for defrauding Appalachian Community Bank, in Ellijay, Georgia. Beamon was convicted by a jury of five counts of bank fraud on December 19, 2014, after a five-day trial.
“Bank fraud is a critical problem that has hit Georgia especially hard,” said Acting United States Attorney John A. Horn. “Georgia leads the nation in bank failures since 2008, with 88 banks failing—including Appalachian Community Bank, the bank this defendant defrauded. These failures significantly affect the economy, making these cases important to safeguard the nation’s financial health.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of Mr. Beamon will hold him accountable for his actions but, unfortunately, will not be able to restore the bank in which he worked for and betrayed. Bank fraud is not a victimless crime and the FBI will continue to provide extensive resources in investigating those who engage in such criminal acts.”
“Former banker Beamon, of TARP applicant Appalachian Community Bank, was sentenced to three years, six months in federal prison for raiding the bank’s inventory of foreclosed real estate when the bank was seeking a TARP bailout,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “A federal jury convicted Beamon of bank fraud. Beamon fraudulently rented out bank-owned properties and collected rent payments for his own use, and he caused the bank to sell properties to his wife and to a shell company he controlled at severely discounted prices—prices well below what others were willing to pay. He claims he did it to save the bank, but these transactions put the bank in jeopardy, and Beamon profited. SIGTARP and our law enforcement partners will shut down TARP-related fraud, swindling, and self-dealing and ensure that perpetrators pay for their crimes.”
“The sentencing of Mr. Beamon reflects fitting punishment for an individual who abused his position of trust at Appalachian Community Bank for personal gain and caused irreparable harm to the institution. The Federal Deposit Insurance Corporation Office of Inspector General is firmly committed to helping ensure integrity in our nation’s banks. We value the cooperative working relationships with our law enforcement partners that bring about such successful outcomes,” said Fred W. Gibson, Acting Inspector General, FDIC.
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Beamon was Vice President of Appalachian Community Bank in Ellijay, Ga. Due to its poor financial condition, Appalachian was forced to close on March 19, 2010, and the FDIC was appointed receiver.
Beamon was in charge of Appalachian’s foreclosure liquidation department. In 2009, he represented to a real estate agent that he personally owned a house in Cumming, Georgia. Beamon hired that agent to market and lease the property on his behalf. In truth, however, the property was owned by Appalachian and was part of the bank’s foreclosure inventory. Beamon’s real estate agent found someone to lease the property and negotiated a lease on Beamon’s behalf. Beamon then deposited into his personal bank account more than $20,000 in rent payments and security deposits that he obtained by leasing out the bank’s property as if he were the owner. Beamon also caused Appalachian to sell bank-owned properties to his wife and to a shell company that he owned—all at prices that were substantially below what other buyers were ready, willing, and able to pay the bank.
Beamon, 54, of Atlanta, Georgia, was sentenced to three years, six months in federal prison, to be followed by five years on supervised release following his prison term, a $500 special assessment, and forfeiture of all real properties involved in the offense.
This case was investigated by the FDIC Office of Inspector General; the Department of Treasury, Special Inspector General Troubled Asset Relief Program; and the Federal Bureau of Investigation.
Assistant United States Attorneys J. Russell Phillips, Douglas W. Gilfillan, and Jenny R. Turner prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Gainesville Division is http://www.justice.gov/usao-ndga.
Alleged Kidnapper IndictedRead the Press Release
PHILADELPHIA - Khayree Gay, 31, of Philadelphia, PA, was charged by indictment, on April 30, 2015, with attempted Hobbs Act Robbery and kidnapping, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a statutory maximum sentence of life in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Jeanine Linehan.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Saturday 2 May 2015
Ft. Thomas X-Ray Technician Pleads GuiltyRead the Press Release
COVINGTON — An X-ray technician from Ft. Thomas, Ky., has admitted in federal court to defrauding state and federal health care programs out of thousands of dollars.
On Friday, Robert Moyer pleaded guilty today to health care fraud, before U.S. District Judge Amul Thapar.
According to court records, starting in June 2010 and continuing until December 2010, Moyer knowingly allowed an unlicensed individual to administer x-rays to Medicare and Medicaid patients from Kentucky and Ohio. He then falsified documentation to conceal who performed the x-ray service. Under federal law, health care benefit programs only reimburse medical professionals for services conducted by a licensed professional.
In total, Moyer filed more than 3,800 fraudulent claims worth $112,173.93.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Jack Conway, Kentucky Attorney General; Sylvia Mathews Burwell, , Department of Health and Human Services, Office of Inspector General, Office of Investigations; and Mike DeWine, Ohio Attorney General, jointly made the announcement.
The investigation was conducted by the Office of the Kentucky Attorney General, Medicaid Fraud and Abuse Control Unit; Department of Health Human Services, Office of Inspector General, Office of Investigations and the Ohio Attorney General’s Office.
Moyer will appear for sentencing on July 16, 2015 at 10:00 a.m. He faces a maximum of 10 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable statutes before imposing a sentence.
Friday 1 May 2015
West Yarmouth Man Sentenced for Child PornographyRead the Press Release
BOSTON – Adam Polakowski, 46, of West Yarmouth, Mass., was sentenced yesterday by U.S. District Court Senior Judge Mark L. Wolf to five years in prison, six years of supervised release, and ordered to pay restitution to four victims. In January 2015, Polakowski pleaded guilty to distribution and possession of child pornography.
On Jan. 14, 2014, law enforcement officers executed a federal search warrant at Polakowski’s West Yarmouth residence. Numerous items, including a desktop computer and a thumb drive, were seized and a search revealed more than 800 images of child pornography, including photographs depicting minors between 4 and14 years of age engaged in sexually explicit activity. Additionally, during the search, several pairs of girls’ underwear were found in Polakowski’s residence where he lived alone.
During an interview with law enforcement officers, Polakowski admitted to using his computer to distribute and receive child pornography. Specifically, Polakowski admitted that he had gone to local beaches and secretly taken photos of young girls which he posted on the Internet.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Yarmouth Police Chief Frank Frederickson, made the announcement today. The case was prosecuted by Assistant U.S. Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
Warwick Man Convicted in Federal Court of Masterminding Bank Fraud Conspiracy, Aggravated Identity Thefts, Conspiracy to Pass Counterfeit CurrencyRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence today convicted David Alcantara, 32, of Warwick, of being the mastermind behind an elaborate conspiracy to defraud two area banks of nearly $600,000 by using stolen personal identifying information of several unsuspecting individuals, announced United States Attorney Peter F. Neronha and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
The jury also convicted Alcantara of leading a conspiracy to convert counterfeit $100 bills into real American dollars by making small retail purchases with bogus $100 bills and receiving cash back in Rhode Island, Massachusetts and Connecticut and by returning items purchased with counterfeit $100 bills in exchange for real cash.
The week-long trial concluded today with the jury returning after deliberating for two hours with guilty verdicts, convicting Alcantara of conspiracy to commit bank fraud, eight counts of aggravated identity theft and conspiracy to pass counterfeit money.
According to the government’s evidence, in December 2009 and January 2010, Alcantara’s schemes resulted in the transfer of over $600,000 from bank accounts of legitimate bank customers into accounts fraudulently created as part of the defendant’s scheme with the use of several individuals’ stolen identities. Money was then withdrawn from the fraudulent accounts in the form of cashier’s checks.
In one scheme, Alcantara provided a co-conspirator stolen identifying information belonging to an unsuspecting small business owner in Harrisburg, Pennsylvania. The co-conspirator used that information at a bank branch office in Rhode Island to request a transfer of $250,000 from the business account into a fraudulent account which was previously opened at the same bank. The account was opened using stolen identifying information of an individual who is deceased.
A bank employee was among the co-conspirators who assisted Alcantara in the scheme by gaining approval of a bank supervisor for the transfer of funds from the legitimate business account into the fraudulent account, knowing that the identifying information used was stolen. Once the transfer was completed, money was withdrawn from various branch bank offices around Rhode Island in the form of cashier’s checks by individuals using the deceased man’s stolen identifying information.
In a second scheme, Alcantara provided several co-conspirators with stolen identifying information of unsuspecting individuals which he instructed them to use to establish fraudulent bank accounts at several branch offices of the same bank. Alcantara also provided the co-conspirators with stolen identifying information of legitimate owners of existing accounts at the same bank and instructed his co-conspirators to transfer funds from the legitimate accounts into the fraudulent accounts.
According to the government’s evidence, at the same time that Alcantara was affecting the bank fraud schemes, he reached out to an individual he thought could assist him in obtaining fraudulent Massachusetts drivers licenses. The individual he reached out to was in fact an undercover DEA agent. The DEA agent, working in conjunction with U.S. Secret Service Agents who were investigating Alcantara and the bank fraud schemes and the passing of bogus $100 bills, recorded several conversations he had with Alcantara as he attempted to secure the fraudulent IDs.
Alcantara, who had been free on unsecured bond since his arrest and initial court appearance in February 2014, was ordered detained today by U.S. District Court Judge John J. McConnell, Jr. after the jury returned its verdict. Alcantara is scheduled to be sentenced on August 4, 2015.
Conspiracy to commit bank fraud is punishable by statutory penalties of up to 30 years imprisonment and a fine of up to $1,000,000. Aggravated identity theft is punishable by a mandatory sentence of 2 years imprisonment and a fine of up to $250,000, consecutive to all other sentences imposed. Conspiracy to pass counterfeit money is punishable by a statutory penalty of up to 5 years imprisonment and a fine of up to $250,000.
Three individuals identified as co-conspirators in these matters previously pleaded guilty and scheduled to be sentenced.
Todd Quinter, 37, of Attleboro, Mass., pleaded guilty on March 28, 2012, to one count each of conspiracy to commit bank fraud, bank fraud and identity theft. He is scheduled to be sentenced on May 26, 2015.
Yoryis Luciano, 28, of Providence, the person identified as a bank employee who assisted in the first scheme, pleaded guilty on February 27, 2012, to one count each of conspiracy to commit bank fraud and bank fraud. He is scheduled to be sentenced on May 26, 2015.
Zizi Stevens, 29, of Providence, pleaded guilty on April 5, 2012, to one count each of conspiracy to commit bank fraud, bank fraud and identity theft. He failed to appear in court for sentencing on June 26, 2012. An arrest warrant has been issued for the defendant, who is believed to have fled the country.
The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Lee H. Vilker.
Prosecutors were assisted at trial by paralegal Kellyann Anderson.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]United States Attorney William C. "Bill" Killian Compliments Agencies' Actions in Barge RemovalRead the Press Release
CHATTANOOGA, Tenn. – The U.S. Attorney for the Eastern District of Tennessee issued a statement today about the removal of the Casey Barge (barge) from the Chattanooga waterfront near downtown Chattanooga. The barge, which has been a source of contention for more than a year, left Chattanooga on Thursday, April 30, 2015, to be transported to Mobile, Alabama.
“The recent removal of the Casey barge was a result of cooperative efforts by several federal and state agencies. Through the diligent efforts of Assistant U.S. Attorneys Kent Anderson and Kenny Saffles, who worked closely with trustee Jerry Farinash, Assistant U.S. Trustee Kim Swafford, the Army Corps of Engineers, the U.S. Coast Guard, and the Tennessee Valley Authority, this long-time eye sore is now gone from the city of Chattanooga,” said U.S. Attorney William C. “Bill” Killian. Killian added, “The agencies involved all worked together to protect the environment and the Chattanooga waterfront from a potential disaster. We wish to thank them for their efforts to expedite the removal of the barge consistent with safety, law and regulations.”
Owners of the barge have been involved in Chapter 11 Bankruptcy proceedings for several years. In February 2015, Nashville District Counsel for the U.S. Army Corps of Engineers (Corps) contacted the U.S. Attorney’s Office for the Eastern District of Tennessee, regarding concerns over the condition of the barge, its potential hazards to the environment and navigation on the river, and the need for its removal. Assistant U.S. Attorneys from the Eastern District of Tennessee, together with the Corps and the office of the U.S. Trustee, advocated for the appointment of a special trustee to oversee the barge owner’s estate and the disposition of the barge itself. The U.S. Bankruptcy Court appointed Chattanooga attorney Jerry Farinash to serve in this capacity.
In an effort to have the barge removed from the Chattanooga waterfront, Mr. Farinash initiated the removal process by seeing that required inspections of the barge were performed and that necessary governmental approvals regarding seaworthiness were obtained. During the process, the barge, which had partially sunk on at least one prior occasion, again took on water. Mr. Farinash arranged for the water to be pumped out and the barge raised up to an acceptable navigable level. Ultimately, Mr. Farinash obtained the required approvals and entered into a contract for permanent removal of the barge.
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US Attorney Nettles Announces Recipients of Crime Victims Awards in Observance of National Crime Victims’ Rights WeekRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, SOUTH CAROLINA – On April 30, 2015, the US Attorney’s Office hosted an awards ceremony in honor of National Crime Victims’ Rights Week. U.S. Attorney William N. Nettles presented awards honoring individuals and organizations that have made outstanding contributions in support of crime victims. All of the honorees have exemplified dedication and commitment in enhancing efforts to meet crime victims where they are, and to empower crime victims as they pursue justice and recovery. Mr. Nettles stated that, “It is an honor and privilege to recognize our partners in support of the victims we serve each day”. Below are the award recipients:
Outstanding Victim Support by a Non-Governmental Agency
Charleston based office of A-21 Campaign - CaraLee Murphy, Director
Outstanding Provider Services
Medical University of South Carolina's National Crime Victims
Research and Treatment Center (NCVC)
Dr. Dean Kilpatrick, Center Director
Dr. Alyssa Rheingold, Director of Clinical Operations
South Carolina Immigrant Victims Assistance Network
Patricia Ravenhorst, Director
OUTSTANDING VICTIM SERVICES
Four Assistant U.S. Attorneys were recognized for their work and dedication in cases involving crime victims.
Nathan Williams- Charleston office
Carrie Fisher-Sherard – Greenville office
Stacey Haynes –Columbia office
William “Bill” Day- Columbia/Florence offices
National Crime Victims’ Rights week observances are held annually and are led by the Office of Victims of Crime (OVC) by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme, Engaging Communities-Empowering Victims, highlights the diversity in our communities and focuses on partnerships to serve victims of crime.
United States Attorney’s Office District of South Carolina– National Crime Victims’ Week Awards Program
(L-R) Clarissa Whaley-Victim Witness Coordinator-USAO, Dr. Dean Kilpatrick and Dr. Alyssa Rheingold-MUSC-NCVC, Patricia Ravenhorst- SCVAN/SCIVN, CaraLee Murphy-A-21 Campaign/Charleston, United States Attorney Bill Nettles and Renee Mattox-Victim Witness Coordinator-USAO
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U.S. Will Pay $13.2 Million for Cleanup Evaluation of 16 Abandoned Uranium Mines on the Navajo NationRead the Press Release
In a settlement agreement with the Navajo Nation, the U.S. will place $13.2 million into an environmental response trust to pay for the evaluations of 16 priority abandoned uranium mines located across Navajo lands. The investigation of these sites is a necessary step before final cleanup decisions can be made. The work to be conducted is subject to the approval of the Navajo Nation as the lead agency and the Environmental Protection Agency (EPA) as the supporting agency.
“This agreement is part of the Justice Department’s increased focus on environmental and health concerns in Indian country as well as the commitment of the Obama Administration to fairly resolve the historic grievances of American Indian tribes and build a healthier future for their people,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The site evaluations focus on the mines that pose the most significant hazards and will form a foundation for their final cleanup. In partnership with our sister federal agencies, we will also continue our work to address the legacy of uranium mining on Navajo lands, including ongoing discussions with the Navajo Nation.”
“EPA is proud to help implement this historic settlement,” said Regional Administrator Jared Blumenfeld for EPA for the Pacific Southwest. “It dovetails with our ongoing activities as we work together to make real progress on the environmental legacy of uranium mining on the Navajo Nation.”
The Navajo Nation encompasses more than 27,000 square miles within Utah, New Mexico and Arizona in the Four Corners area. The unique geology of the region makes the Navajo Nation rich in uranium, a radioactive ore in high demand after the development of atomic power and weapons at the close of World War II. Approximately four million tons of uranium ore were extracted during mining operations within the Navajo Nation from 1944 to 1986. The federal government, through the Atomic Energy Commission (AEC), was the sole purchaser of uranium until 1966, when commercial sales of uranium began. The AEC continued to purchase ore until 1970. The last uranium mine on the Navajo Nation shut down in 1986. Many Navajo people worked in and near the mines, often living and raising families in close proximity to the mines and mills.
Since 2008, a number of federal agencies including EPA, the Department of Energy, the Bureau of Indian Affairs, the Department of the Interior, the Nuclear Regulatory Commission and the Indian Health Service have been collaborating to address uranium contamination on the Navajo Nation. The federal government has invested more than $100 million to address abandoned uranium mines on Navajo lands. EPA has remediated 34 homes, provided safe drinking water to 1,825 families, conducted field screening at 521 mines, compiled a list of 46 “priority mines” for cleanup and performed stabilization or cleanup work at nine mines. This settlement agreement resolves the claims of the Navajo Nation pertaining to costs of evaluations at 16 of the 46 priority mines for which no viable responsible private party has been identified.
In April 2014, the Justice Department and EPA announced in a separate matter that approximately $985 million of a multi-billion dollar settlement of litigation against subsidiaries of Anadarko Petroleum Corp. will be paid to EPA to fund the clean-up of approximately 50 abandoned uranium mines in and around the Navajo Nation, where radioactive waste remains from Kerr-McGee mining operations.
U.S. Attorney Urges Kansas Law Enforcement to Apply for Body Camera Pilot ProgramRead the Press Release
KANSAS CITY, KAN. – U.S. Attorney Barry Grissom Friday urged Kansas law enforcement agencies to consider applying for a new federal program to help equip officers with body cameras.
“I have traveled across Kansas and spoken to law enforcement and community leaders,” Grissom said. “I have heard from both groups that body cameras should be standard equipment. Both sides of this issue agree this is one of the best ways to build trust and to keep both the public and officers safe.”
Grissom was one of many federal law enforcement officials who urged the Justice Department to provide assistance to law enforcement agencies that adopt body cameras.
The Department of Justice Friday announced a $20 million Body-Worn Camera (BWC) Pilot Partnership Program to respond to the immediate needs of local and tribal law enforcement organizations. The investment includes $17 million in competitive grants for the purchase of body-worn cameras, $2 million for training and technical assistance and $1 million for the development of evaluation tools to study best practices. The pilot program is part of President Obama’s proposal to invest $75 million over three years to purchase 50,000 body-worn cameras for law enforcement agencies.
“This body-worn camera pilot program is a vital part of the Justice Department’s comprehensive efforts to equip law enforcement agencies throughout the country with the tools, support, and training they need to tackle the 21st century challenges we face,” said Attorney General Loretta E. Lynch. “Body-worn cameras hold tremendous promise for enhancing transparency, promoting accountability, and advancing public safety for law enforcement officers and the communities they serve.”
Administered by the Bureau of Justice Assistance (BJA) under the Justice Department’s Office of Justice Programs (OJP), the BWC pilot program will provide support to help law enforcement agencies develop, implement and evaluate body-worn camera programs across the United States.
“Body-worn camera technology is a valuable tool for improving police-citizen relationships,” said Director Denise O’Donnell of the Bureau of Justice Assistance. “BJA is committed to helping law enforcement agencies identify the safest and most effective methods for deploying this technology and addressing factors such as privacy, archiving and legal regulations surrounding its use. BJA stands by to guide agencies through what can be a complex process toward more successful adoption of the technology.”
The Justice Department expects to provide 50 awards to law enforcement agencies, with about one-third of the grants directed toward smaller law enforcement agencies. The grants, which require a 50/50 in-kind or cash match, can be used to purchase equipment but applicants must establish a strong plan for implementation of body-worn cameras and a robust training policy before purchasing cameras. The long term costs associated with storing this information will be the financial responsibility of each local agency.
Another $2 million will fund a national BWC Training and Technical Assistance provider through a competitive process, to assist agencies developing and enhancing their BWC programs. This training and technical assistance will provide support to law enforcement agencies to support successful implementation of their body-worn camera programs.
OJP’s Bureau of Justice Statistics (BJS) will receive $1 million of the funds to collect data on body-worn camera usage through surveys of law enforcement agencies. BJS will also design data collection forms that can be used in future surveys of prosecutors and public defenders to measure how body-worn camera footage is being used by the courts in criminal cases.
BJA will launch a BWC Implementation Toolkit in May, designed as an online resource for stakeholders. The toolkit will focus on implementation requirements, retention issues, policy concerns, interests of prosecutors, victim and privacy advocates’ concerns, along with community engagement and funding considerations.
For additional information about the BWC Pilot Implementation Program, visit this website: http://go.usa.gov/3BtMW.
IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
U.S. Attorney Dettelbach appointed to Attorney General Lynch's Advisory CommitteeRead the Press Release
Steven M. Dettelbach, U.S Attorney for the Northern District of Ohio, is one of six new members appointed to the Attorney General's Advisory Committee, Attorney General Loretta E. Lynch this week. Besides Dettelbach, the following appointments became effective April 29, 2015:
- U.S. Attorney Deirdre Daly for the District of Connecticut;
- U.S. Attorney Conner Eldridge for the Western District of Arkansas;
- U.S. Attorney Paul Fishman for the District of New Jersey;
- U.S. Attorney Booth Goodwin II for the Southern District of West Virginia; and
- U.S. Attorney Kenneth Polite for the Eastern District of Louisiana.
“The distinguished women and men who serve on the Attorney General’s Advisory Committee provide invaluable advice and wise counsel that help shape the Justice Department’s approach to combating crime, violence, and injustice in every community across the country,” said Attorney General Lynch. “They help introduce new ideas, formulate innovative policies, and design fresh strategies. They foster collaboration across our U.S. Attorney’s Offices and with Main Justice. And, in all of their work, they seek to strengthen and improve law enforcement efforts at every level. As a former chair of the AGAC, I am proud to welcome six outstanding new members to the Committee, and I look forward to all that we will achieve, with their help, in the days ahead.”
Dettelbach and Fishman are the only U.S. Attorneys to have served on the Advisory Council for both Attorney General Lynch and former Attorney General Eric Holder.
"I am deeply honored to be appointed to Attorney General Lynch's Advisory Committee," Dettelbach said. "The Department of Justice has many proud traditions, but making sure that leading law enforcement people not just from inside the Beltway, but from across the nation have a significant role in guiding policy is one of its proudest. Working side by side with them is a rare opportunity."
Attorney General Lynch also thanked U.S. Attorney Ronald Sharpe for the District of the Virgin Islands for serving on the Attorney General’s Advisory Committee for the past two years.
A brief bio on each new appointee is below:
Deirdre Daly was presidentially appointed and sworn in as the U.S. Attorney for the District of Connecticut on May 28, 2014. Daly previously served as the U.S. Attorney in an acting or interim capacity since May 14, 2013. Between July 2010 and May 2013, she was the First Assistant U.S. Attorney during which time she assisted in the oversight of both the Criminal and Civil Divisions. From 1985 to 1997, Daly was an Assistant U.S. Attorney in the Southern District of New York, where she prosecuted a wide range of cases from racketeering and murder to corruption and fraud and later served as the Assistant-In-Charge of White Plains Office for three years. After leaving the Justice Department, Daly was a partner at Daly & Pavlis LLC, a Connecticut law firm with a practice focused on corporate and commercial litigation, white-collar criminal investigations, SEC enforcement actions and corporate internal investigations and monitoring.
Steven Dettelbach was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Ohio in September 2009. Dettelbach previously served for over 12 years as a career federal prosecutor. During those years, he worked at the Department of Justice, Civil Rights Division, Criminal Section, U.S. Attorneys Offices in Maryland and Washington, D.C. and from 2003 to 2006 in the Northern District of Ohio, as a member of the Organized Crime and Corruption Strike Force. Dettelbach also was detailed to serve as Counsel for the U.S. Senate Committee on the Judiciary from 2001 to 2003. Formerly, Dettelbach was a partner at the law firm of Baker & Hostetler LLP.
Conner Eldridge was presidentially appointed and sworn in as the U.S. Attorney for the Western District of Arkansas on December 21, 2010. Eldridge is the youngest U.S. Attorney in the country. Eldridge serves as co-chair of the Domestic Terrorism Executive Committee, which is composed of twenty law enforcement agencies and Department of Justice components and works to increase collaboration in addressing the threat of Domestic Terrorism. While serving as U.S. Attorney, Eldridge has tried five cases to jury verdict. He previously served as a Deputy Prosecuting Attorney in Arkadelphia (Clark County), Arkansas, as Counsel and, later, Chief Executive Officer of Summit Bank, a community bank then serving central and southwest Arkansas, also in Arkadelphia, as a clerk to federal District Judge G. Thomas Eisele and as a legislative assistant to former U.S. Senator Blanche Lincoln and former U.S. Congressman Marion Berry, both of Arkansas.
Paul Fishman was presidentially appointed and sworn in as the U.S. Attorney for the District of New Jersey on October 14, 2009. Fishman previously served as a member of the Attorney General's Advisory Committee of U.S. Attorney's (AGAC) from 2009-2013. He served as Vice-Chair of the AGAC from 2009-2011 and Chair from 2011-2012. After graduating from law school, he clerked for the Honorable Edward R. Becker of the U.S. Court of Appeals for the Third Circuit. He was an Assistant U.S. Attorney from 1983 to 1994. From 1994 to 1997, he was a senior adviser to the Attorney General and Deputy Attorney General of the U.S. on a variety of law enforcement, policy, legislative, national security and international matters, as well as on specific investigations and prosecutions. In addition to his public service, from 1998 - 2009 Fishman was a partner in the law firm of Friedman Kaplan Seiler & Adelman.
Booth Goodwin II was presidentially appointed and sworn in as U.S. Attorney for the Southern District of West Virginia on May 27, 2010. From January 2001 until he was sworn in as U.S. Attorney, Goodwin was an Assistant U.S. Attorney for the Southern District of West Virginia. Prior to that, Goodwin practiced for five years with the Charleston law firm of Goodwin & Goodwin, LLP where he engaged in commercial and personal injury litigation, closed multi-million dollar bond transactions, filed reports with the U.S. Securities and Exchange Commission and handled numerous commercial and residential real estate transactions.
Kenneth Polite was presidentially appointed and sworn in as U.S. Attorney for the Eastern District of Louisiana on September 20, 2013. Polite currently serves as a member of the AGAC's Violent and Organized Crime Subcommittee and Smart on Crime Working Group. Prior to becoming U.S. Attorney, Polite was a shareholder at Liskow & Lewis, where he headed the white collar criminal defense group and served as the Firm's hiring partner. From 2007 to 2010, Polite served as an Assistant U.S. Attorney for the Southern District of New York. There, he prosecuted a wide range of federal criminal offenses, including organized crime, public corruption, narcotics and firearms trafficking, money laundering and identity theft. Polite was an associate at Skadden, Arps, Slate, Meagher & Flom LLP, first in the Delaware office's corporate litigation practice from 2000 to 2001, and later, in the New York office's white collar criminal defense group from 2002 to 2006.
The Attorney General’s Advisory Committee will now include the following individuals:
- U.S. Attorney John F. Walsh for District of Colorado, Chair;
- U.S. Attorney Richard S. Hartunian for the Northern District of New York, Vice Chair;
- U.S. Attorney Michael W. Cotter for the District of Montana;
- U.S. Attorney Deirdre Daly for the District of Connecticut;
- U.S. Attorney Thomas E. Delahanty, II for the District of Maine;
- U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio;
- U.S. Attorney Conner Eldridge for the Western District of Arkansas;
- U.S. Attorney Zachary T. Fardon for the Northern District of Illinois;
- U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida;
- U.S. Attorney Paul J. Fishman for the District of New Jersey;
- U.S. Attorney R. Booth Goodwin II for the Southern District of West Virginia;
- U.S. Attorney Barry R. Grissom for the District of Kansas;
- U.S. Attorney Kerry B. Harvey for the Eastern District of Kentucky;
- U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan;
- U.S. Attorney Zane D. Memeger for the Eastern District of Pennsylvania;
- U.S. Attorney Wendy J. Olson for the District of Idaho;
- U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana;
- U.S. Attorney Vincent Cohen, Jr. for the District of Columbia, ex officio;
- Criminal Chief Thomas Eicher for District of New Jersey, ex officio;
- Appellate Chief Sandra Glover for District of Connecticut, ex officio; and
- Civil Chief Thomas Walsh for the Northern District of Illinois, ex officio.
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the attorney general on policy, management and operational issues impacting the offices of the U.S. Attorneys.
Two V.I. National Guard Soldiers Arrested on Charges of Wire Fraud, Theft, and Making False StatementsRead the Press Release
St. Croix, USVI – Two Virgin Islands National Guard (VING) soldiers have been arrested after a federal grand jury returned indictments charging them with wire fraud, theft of government money, and making false statements to the government, United States Attorney Ronald W. Sharpe announced today.
Staff Sergeant Emmrie Edwards, 37, who was arrested Thursday, is charged in a 49-count indictment with 47 counts of wire fraud, one count of theft of government money, and one count of making a false statement to the government. After his advice of rights hearing Thursday before U.S. Magistrate Judge George W. Cannon, Edwards was released on an unsecured $50,000 bond. His arraignment is scheduled for May 4, 2015.
Lieutenant Colonel Kenneth Alleyne, 45, who was also arrested Thursday, is charged in a 46-count indictment with 44 counts of wire fraud, one count of theft of government money, and one count of making a false statement to the government. After his advice of rights hearing today before U.S. Magistrate Judge George W. Cannon, Alleyne was released on an unsecured $50,000 bond. His arraignment is scheduled for May 6, 2015.
The indictments are the result of months of investigative work by the U.S. Army Criminal Investigations Command Major Procurement Fraud Unit, Homeland Security Investigations, and the Defense Criminal Investigative Service. The charges for both soldiers relate to improper use of government issued housing allowance funds.
Wire fraud carries a maximum sentence of 20 years in prison and a $250,000 fine. The theft of government money charge carries a maximum sentence of 10 years in prison and a $250,000 fine. The making a false statement to the government charge carries a maximum sentence of five years in prison and a $250,000 fine.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Christian Stringer.
Two Miami Area Tax Return Preparers Indicted for Aiding and Assisting in Preparation of False Tax ReturnsRead the Press Release
Two federal indictments were unsealed yesterday in the Southern District of Florida charging two Miami area tax return preparers with aiding and assisting in the preparation of false federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
On April 14, Noe Mompoint, of Southwest Ranches, Florida, was charged with 14 counts of aiding and assisting in the preparation of false federal income tax returns. Lucvens Francois, of Aventura, Florida, was charged in a separate indictment with 19 counts of aiding and assisting in the preparation of false federal income tax returns. Both defendants surrendered yesterday and had their initial appearances in court.
According to the allegations in the indictments, Mompoint owned and operated the Tax Resource Center, a tax preparation business located in Miami. Mompoint filed tax returns for clients that reported fraudulent first-time homebuyer credits. Francois owned and operated a branch office of the Tax Resource Center, also located in the Miami area. Francois filed tax returns for clients that reported fraudulent first-time homebuyer credits and returns that claimed a variety of other false items, including false education credits, false business losses and false itemized deductions.
If convicted, Mompoint and Francois each face a statutory maximum sentence of three years in prison and a fine of $250,000 on each count.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceeding.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Charles M. Edgar Jr. and Jason H. Poole of the Tax Division, who are prosecuting the case.
Two Men Plead Guilty to Trafficking Children for Commercial SexRead the Press Release
SAN DIEGO – Two men pleaded guilty in federal court this week to trafficking children for commercial sex.
On Tuesday, Darius Chambers, 19, admitted before U.S. Magistrate Judge Karen S. Crawford that he trafficked two girls – ages 16 and 17 – for commercial sex. Chambers admitted that, knowing the victims were underage and engaged in prostitution, he collected the proceeds of acts of commercial sex from one victim and provided hotel rooms, cellular telephones, and email accounts for both victims to use for commercial sex. Chambers also admitted that he offered to rent one of his victims to a third trafficker for $100, in order to train that individual’s minor victim in the ways of prostitution.
On Thursday, Terrance Martel Soda, 20, pleaded guilty before Judge Mitchell D. Dembin to trafficking a fifteen-year old girl for commercial sex, knowing that she was a minor. Specifically, Soda admitted that he provided hotel rooms for the victim to use for commercial sex and that he gave her a cell phone, an email account, and online advertisements to recruit customers.
Soda also admitted providing hotel rooms for two additional underage girls for purposes of commercial sex, and that some of the proceeds of those commercial sex acts would go to Lamar Moore. Moore pleaded guilty in October 2014 to trafficking a 17 year-old for commercial sex and aiding and abetting in the trafficking of a 15-year old for commercial sex.
Soda and Chambers are scheduled to be sentenced on July 31, 2015 at 9:00 a.m. before U.S. District Judge Janis L. Sammartino.
DEFENDANTS Case Number: Terrance Martel Soda Age: 20 San Diego, California Darius Chambers Age: 19 San Diego, California CHARGESTrafficking children for commercial sex, in violation of 18 U.S.C. § 1591.
INVESTIGATING AGENCIES
Maximum Penalties: Life, mandatory minimum sentence of 10 years in prison.San Diego Police Department
San Diego Sheriff’s DepartmentThree Charged with Committing Federal Firearms Offenses in Nashville's JC Napier and University Court Public Housing AreasRead the Press Release
A federal grand jury has indicted three Nashville, Tenn. men for separate crimes involving federal firearms offenses in the J.C. Napier and University Court public housing developments, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Michael Calloway aka Oso, 20, was charged with being a felon in possession of ammunition. Charging documents allege that on April 12, 2015, near the intersection of Lewis St. and Robertson St., in Nashville, Calloway fired several shots at an individual, striking him in the leg with one of the bullets.
Jacarlvis Marable, 22, was charged with being a felon in possession of a firearm. Charging documents allege that Marable stole a Glock handgun from Gun City USA in Nashville on February 14, 2015.
Deshon Burleson aka C-Shawn, 28, was charged with being a felon in possession of two firearms. Charging documents allege that on October 21, 2014, Burleson was in the housing projects and fled into one of the apartments to evade a Metro Nashville Police officer, who had observed a handgun in the waistband of Burleson’s pants.
All three defendants are in custody and face up to ten years in prison if convicted.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
The cases were investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The cases are being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Springfield Man Indicted on Federal Firearm ChargeRead the Press Release
BOSTON – Joshua Ortiz, 23, of Springfield, was indicted in U.S. District Court in Springfield for being a convicted felon in possession of a firearm and ammunition.
The indictment alleges that on Oct. 10, 2014, Ortiz possessed a HiPoint Model JHP .45 caliber firearm and eight rounds of ammunition.
The charge of being a felon in possession of a firearm provides a maximum sentence of 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Springfield Police Commissioner John Barbieri, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Somerset Optometrist Found Liable for False Claims ActRead the Press Release
LEXINGTON - The U.S. Attorney’s Office announced today that a federal jury found Dr. Phillip Robinson, a Somerset optometrist, liable, under the False Claims Act, for seeking payment from the Medicare program for more than 11,000 unnecessary eye examinations he provided to nursing home residents.
On Friday, May 1, 2015, the jury reached its verdict, after three hours of deliberation, following a five-day trial. The jury found that the Medicare program lost $419,075 as a result of Dr. Robinson’s false claims. Under the False Claims Act, Dr. Robinson will be required to pay the federal government three times that amount, $1,257,225.
“Dr. Robinson's scheme to defraud the taxpayers betrays the standards we expect of our healthcare providers,” said U.S. Attorney Kerry B. Harvey. “His willingness to use many of our most vulnerable citizens to further his financial interests at the expense of our vital federally funded healthcare programs is particularly troubling. We will continue to use every available tool to protect the public treasury from this sort of abuse.”
Dr. Robinson provided eye care services at approximately a dozen nursing homes in Pulaski, Lincoln, and McCreary Counties, among other southeastern and south-central locations in Kentucky. Evidence presented at the trial established that, from January 1, 2007 to January 31, 2012, Dr. Robinson gave eye examinations to the vast majority of his nursing home patients, once a month, regardless of the patients’ condition or medical need. Medical experts testified that they were unaware of any other optometrists that provided eye exams with this frequency.
The evidence further established that Dr. Robinson caused the Medicare program to be billed for these exams. Because Medicare only pays for medically necessary exams, Dr. Robinson intentionally filed claims that represented each exam was necessary.
The jury concluded that Dr. Robinson was responsible for 11,085 false claims, submitted to Medicare for payment, for the unnecessary eye examinations.
In January 2015, Dr. Robinson’s practice group, Associates in Eye Care, agreed to pay the government $800,000 to settle related claims against it, thereby avoiding trial.
Health care providers found liable under the False Claims Act are typically excluded from further participation in federal health care programs such as Medicare and Medicaid. A decision about Dr. Robinson’s exclusion from federal health care programs will be made by the Department for Health and Human Services, Office of Inspector General (HHS-OIG).
This investigation was conducted by HHS-OIG, the Kentucky Office of Attorney General’s Medicaid Fraud and Abuse Control Unit, and the United States Attorney’s Office for the Eastern District of Kentucky. Assistant United States Attorneys Christine Corndorf, Andrew Smith, and Paul McCaffrey litigated the case on behalf of the federal government.
Seven Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced seven individuals for their roles in a conspiracy to commit stolen identity refund fraud in the Tampa Bay area. Mikeil Royal was sentenced to five years and five months, Brian Gilchrist was sentenced to three years and one month, Donterrio Troup was sentenced to two years and eleven months, Kenneth Royal was sentenced to two years and nine months, Terrence Johnson was sentenced to two years, Shadae Cotton was sentenced to one year and nine months, and Tanisha Johnson was sentenced to one year and eight months. As part of each defendant’s sentence, the Court also entered a money judgment in the amount of $488,657.71, representing the amount of the proceeds of the charged criminal conduct. Each individual previously pleaded guilty for their roles in the conspiracy.
According to court documents, between 2011 and 2014, the above-named individuals filed false and fraudulent income tax returns in the names of deceased individuals whom they located on the Internet. In these returns, the conspirators represented that they were entitled to the refunds and requested that the IRS direct refunds in varying amounts to accounts that they had established, in their own respective names, at two local financial institutions.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Reno Man Using Private Plane to Transport Marijuana Out of State Sentenced to Two Years in PrisonRead the Press Release
SACRAMENTO, Calif. —Kevin Dennis Golden, 39, of Reno, Nevada, was sentenced today to two years in prison for possession with the intent to distribute approximately 88 pounds of marijuana that he was attempting to fly in a private plane to Pennsylvania, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 14, 2012, law enforcement agents went to the Lincoln airport as part of an investigation into a suspicious Cessna airplane that had been making frequent flights from California to the Midwest and East Coast. They observed that the plane had landed and saw the pilot go into the pilot’s lounge. Approximately an hour later, a vehicle drove up to the airplane. Golden got out of the vehicle, removed three black suitcases and a backpack from the vehicle and placed them inside the airplane. Golden then drove to a nearby parking lot, parked, and walked back to the airplane. Agents approached the pilot of the plane and told him of their intent to perform a ramp check in accordance with Federal Aviation Administration regulations. While conducting the ramp check, the three suitcases were seen inside the small aircraft. After receiving consent to look inside the suitcases from Golden, the agents discovered multiple vacuum-sealed bags of marijuana. An additional bag of marijuana was found in the smaller backpack that also contained Golden’s identification. A total of 40 kilograms (88 pounds) of marijuana were taken out of the suitcases and backpack. Further evidence showed that Golden had taken two previous trips to Philadelphia, Pennsylvania in the aircraft to deliver marijuana.
U.S. Attorney Benjamin Wagner stated: “The use of private planes and small private airports to transport and distribute controlled substances is a known and continuing problem within the Eastern District of California. Persons involved in such activity should understand that they face prison, large fines, and, in appropriate cases, forfeiture of vehicles and aircraft used to engage in such activity.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with the assistance of the Lincoln Police Department and the Placer County Sheriff’s Office.
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Project Sentry Logo Contest; Press Release Announcing Division Winners and Overall Winner and SchoolsRead the Press Release
Contact Person: Lance Crick (864) 282-2100
MEDIA ALERT:
12th Annual Project Sentry Logo Contest Winners Announced
Winning Students from Myrtle Beach, Orangeburg, Macedonia, and Pawleys IslandCOLUMBIA, South Carolina ---- United States Attorney Bill Nettles announced today the winners of the United States Attorney’s Office 12th Annual Project Sentry Logo Contest. The winners are from the following schools:
K-2nd grade division winner: Presley Sokolils, Socastee Elementary School, Myrtle Beach, South Carolina
3rd-5th grade division winner: Tamiya Dickson, Marshall Elementary School, Orangeburg, South Carolina
6th-8th grade division winner and OVERALL WINNER: Josiah Agnew, Macedonia Middle School, Macedonia, South Carolina
9th-12th grade division: Kelvin Cheah, Waccamaw High School, Pawleys Island, South Carolina
The winning entries, attached below, were chosen from 529 entries from 47 schools across South Carolina. Each division winner will receive a $50.00 award, with the overall winner receiving an additional $50.00 award. All of the students who participated will receive a Certificate of Appreciation for logo submissions.
The statewide contest fosters an opportunity for South Carolina students to tell the entire state how they prevent gun violence in their school and focuses on deterrence of juvenile gun violence and ensuring secure school environments. The contest was open to students in all South Carolina schools.
The winning entries were selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state, encouraging troubled children and promoting community awareness of the prevalence and consequences of juvenile crime. The United States Attorney's Office coordinated with the South Carolina Law Enforcement Officers’ Association Foundation (SCLEOA) to provide the cash awards to the winners.
Project Sentry, which is part of the district’s Project Safe Neighborhoods/Project CeaseFire program, is a vital step in strengthening our ability to prevent gun crimes among our young people and to ensure a safe learning atmosphere for our children. For more information on the Project Sentry program and to view this year’s winning submissions (also attached below) as well as winning logos over the years, visit http://www.justice.gov/usao/sc/programs/logowinners.html
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2015 Project Sentry Logo K-2 Winner Presley Sokolils
2015 Project Sentry Logo 3-5 Winner Tamiya Dickson
2015 Project Sentry Logo 6-8 and Overall Winner Josiah Agnew
2015 Project Sentry Logo 9-12 Winner Kelvin Cheah
Possessing Pornographic Images of Babies and Toddlers Sends Sugar Land Man to PrisonRead the Press Release
HOUSTON – Glenn Casey Portwood, 53, has been ordered to federal prison following his conviction of possession of child pornography which included images of babies and toddlers, announced U.S. Attorney Kenneth Magidson. Portwood pleaded guilty Nov. 18, 2014.
Today, U.S. District Judge Gray Miller took into consideration the large number of images and handed Portwood the statutory maximum of 120 months in federal prison. At the hearing, information was presented including a victim letter/statement from two victims of child pornography series. In handing down the sentence, Judge Miller considered the large collection and the nature of the images and videos possessed by Portwood. He was further ordered to pay restitution of $5,000 to a known victim and will serve 15 years of supervised release following completion of his prison term. He will also be ordered to register as a sex offender.
The investigation began in September 2012 when a particular computer was identified as sharing child pornography via peer-to-peer software on the Internet. Law enforcement linked that computer Internet account to Portwood’s name and found that he resided in Sugar Land.
A search warrant was conducted at the location and included a Honda Portwood admitted he drove. Inside the trunk of the vehicle, officers discovered found a black backpack with nine individually labeled CDs, two external hard drives, one Compaq Presario laptop computer and one Gateway laptop computer.
One of the CDs was labeled “VCKY 2004,” on which officers found a folder named “Vicky” with 32 movie files containing child pornography. “Vicky” is the name of a known and identified child pornography series of images and videos that is widely traded over the Internet.
A forensic exam revealed approximately 70 videos and 325 images containing child pornography on the two computers and one of the external hard drives also contained approximately 50,000 images and 1,300 child pornography videos. Four of the CDs also contained child pornography. Some of the images and videos involved prepubescent girls, even toddlers and babies. The child pornography included children as young as 1-3 years old to young teens engaging in oral, vaginal and anal sex. There were also images depicting bondage.
Portwood will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Portwood were the result of an investigation conducted by the Sugar Land Police Department, as part of the Houston Metro Internet Crimes Against Children Task Force and the FBI.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, 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."
Perry Woman Sentenced to Four Months on Drug and Food Stamp Fraud ChargesRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Tonia Smith, 42, of Perry, Maine, was sentenced to four months of imprisonment and three years of supervised release for fraudulently acquiring Hydrocodone and food stamp fraud. She was also ordered to pay $3,933.88 in restitution. She pled guilty to the charges on November 18, 2014.
According to court records, from July to November 2013, Smith used her position as a pharmacy technician at the Indian Health Service Center on Pleasant Point Reservation in Perry to steal the pain medication Hydrocodone from the pharmacy and then shredded records that the pharmacy was required to keep in order to conceal her thefts. The investigation also revealed that from January to November 2013, Smith bought EBT cards from food stamp recipients for amounts less than the credit assigned to each card and then used the cards to make unauthorized purchases.
The investigation was conducted by the Offices of Inspector General of the U.S. Departments of Health and Human Services and Agriculture and the Pleasant Point Police Department.
Pennsylvania Man Sentenced to One Year in Prison for Selling 12 Gauge Pistol Made from Modified Flare GunRead the Press Release
Also illegally sold practice grenade fuses
ALEXANDRIA, Va. – Eric Mark Way, 29, of Aliquippa, Pennsylvania, was sentenced today to 12 months and one day in prison, followed by two years of supervised release, for transferring an illegally modified flare gun.
Way pleaded guilty on January 20, 2015. According to court documents, Way sold multiple modified flare gun kits. These kits consisted of a flare gun, an insert that converted the legal signaling device into an illegal 12 gauge device, and a canvass carrying pouch. One of the individuals who purchased this modified weapon from Way was a violent, convicted felon.
In addition to selling the modified flare guns, Way also was caught illegally selling M228 practice grenade fuses. In order to sell these fuses, both the seller and purchaser must possess a federal explosives license. Way does not have a federal explosives license.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
This case was investigated by the ATF Falls Church Field Office. Assistant U.S. Attorney Zachary Terwilliger and Special Assistant U.S. Attorney Caroline Friedman are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-08.
Owner of District Heights Shipping Company Convicted of Illegally Attempting to Export Arms to Lebanon and SmugglingRead the Press Release
Greenbelt, Maryland – A federal jury convicted Sam Rafic Ghanem, age 45, of Springfield, Virginia, today for attempting to illegally export defense articles, specifically firearms parts and accessories, to Lebanon, and for smuggling goods from the United States.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Ghanem, a naturalized U.S. citizen born in Lebanon, owned and operated Washington Movers International, also known as Washington Movers, Inc., a freight forwarding business located in District Heights, Maryland.
According to evidence presented at his five day trial, beginning October 3, 2013, Ghanem sought to export guns and accessories to Lebanon through his shipping company that were provided to him by an FBI source. Ghanem knew that the weapons and accessories were designated as defense articles and required an export license, which Ghanem never sought or obtained. In addition, those items are prohibited from export to Lebanon. The specific items Ghanem attempted to export included: seven 9mm semi-automatic pistols; three .40 caliber semi-automatic pistols; 10 AR-15 .223 caliber semi-automatic rifles; and 18 advanced combat optic gun sights.
According to trial evidence, on November 21, 2013, Ghanem told the source to pay him $3,000 for the cost of purchasing salvaged vehicles which would be used to export the firearms and accessories. Ghanem texted the source his bank account number and at the direction of law enforcement, the source deposited $3,000 into Ghanem’s account. Ghanem purchased the salvaged vehicles and arranged for them to be cut up. Ghanem concealed the weapons and other items within the doors and cut-up parts of the salvaged vehicles, which were then loaded into a shipping container. Ghanem advised the source that the shipping container would be loaded with the remaining car parts and transported to the Port of Baltimore for shipment to Lebanon on December 23, 2013. Ghanem was subsequently arrested.
Ghanem faces a maximum sentence of 20 years in prison for attempting to illegally export defense articles, and 10 years in prison for smuggling. U.S. District Judge Roger W. Titus has scheduled sentencing for August 12, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI and Homeland Security Investigations Washington, D.C., for their work in the investigation and thanked U.S. Customs and Border Protection for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Christine Manuelian and Joseph R. Baldwin, who are prosecuting the case.
Olathe Woman Pleads Guilty to Social Security Benefits FraudRead the Press Release
KANSAS CITY, KAN. – An Olathe woman pleaded guilty Friday to fraudulently collecting more than $53,000 in benefits from Social Security, U.S. Attorney Barry Grissom said.
April M. Martinez, 37, Olathe, Kan., pleaded guilty to one count of Social Security fraud. In her plea, she admitted she first became eligible for Title II Disability Insurance Benefits in May 1998. The Social Security Administration also approved her application for Supplemental Security Income. The terms of the programs required her to report if she returned to work while receiving benefits.
From November 2007 through May 2011, Martinez intentionally failed to disclose to the Social Security Administration that she had returned to work. She worked as a Certified Nurse Aid (CNA) at the Olathe Medical Center during part of that time. As a result, she admits that she fraudulently obtained a total of $53,827 in Social Security disability benefits.
Sentencing will be set at a later time. She faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended the Social Security Administration’s Office of Inspector General and Special Assistant U.S. Attorneys Trey Alford and Trent Krug for their work on the case.
Natural Gas Processor Merit Energy Agrees to Comprehensive Program to Reduce Harmful Air Pollution from Leaking Equipment to Resolve Clean Air Act Violations in MichiganRead the Press Release
Merit Energy Company, a Texas-based oil and natural gas exploration and production company, has agreed to pay an $885,000 civil penalty and to improve leak detection and repair work practices to settle alleged violations of the Clean Air Act at its natural gas processing facility in Kalkaska, Michigan, the Department of Justice and the Environmental Protection Agency (EPA) announced today. Emissions of volatile organic compounds (VOCs) from leaking equipment impact the environment and may cause serious health effects. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
“This comprehensive compliance program continues our efforts to control fugitive emissions and will require Merit Energy to upgrade its monitoring and maintenance practices to help prevent future violations,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “Compliance with the clean air laws is essential to maintaining safe, responsible, and reliable sources of domestic energy.”
"People in northwest Michigan will breathe cleaner air as a result of this settlement," said EPA Regional Administrator Susan Hedman. "Merit Energy will be making changes at the company's natural gas processing facility in Kalkaska that will prevent emissions of pollutants that pose risks for people with asthma and other respiratory diseases.”
“My office is pleased with this settlement. Prevention or immediate detection and repair are critical when protecting health and the environment,” said U.S. Attorney Patrick Miles Jr. for the Western District of Michigan. “We and the EPA are vigilantly ensuring compliance with the Clean Air Act and other environmental laws.”
In addition to paying a penalty, Merit Energy will implement a comprehensive leak detection and repair (LDAR) program to reduce emissions of VOCs from leaking equipment such as valves and pumps. These emissions, known as “fugitive” emissions because they are not discharged from a stack but rather leak directly from equipment, are generally controlled through work practices, like monitoring and repairing leaks. The settlement requires Merit Energy to implement enhanced work practices, including more frequent leak monitoring, better repair practices and innovative new efforts designed to prevent leaks. In addition, the enhanced LDAR program requires Merit Energy to replace valves with new “low emissions” valves or valve packing material, designed to significantly reduce the likelihood of future leaks of VOCs. This settlement imposes the first enhanced LDAR program at a natural gas processing facility.
According to the complaint, filed simultaneously with the settlement today in the Western District of Michigan, Merit Energy allegedly violated Clean Air Act requirements to monitor and repair leaking equipment and demonstrate compliance with regulations applicable to onshore natural gas processing plants.
The consent decree is subject to a 30 day comment period and final approval by the court. A copy of the consent decree is available on the Department of Justice web site at www.justice.gov/enrd/Consent_Decrees.html.
Natural Gas Processor Merit Energy Agrees to Comprehensive Program to Reduce Harmful Air Pollution from Leaking Equipment to Resolve Clean Air Act Violations in MichiganRead the Press Release
WASHINGTON – Merit Energy Company, a Texas-based oil and natural gas exploration and production company, has agreed to pay an $885,000 civil penalty and to improve leak detection and repair work practices to settle alleged violations of the Clean Air Act at its natural gas processing facility in Kalkaska, Michigan, the Department of Justice and the Environmental Protection Agency (EPA) announced today. Emissions of volatile organic compounds (VOCs) from leaking equipment impact the environment and may cause serious health effects. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
“This comprehensive compliance program continues our efforts to control fugitive emissions and will require Merit Energy to upgrade its monitoring and maintenance practices to help prevent future violations,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “Compliance with the clean air laws is essential to maintaining safe, responsible, and reliable sources of domestic energy.”
“People in northwest Michigan will breathe cleaner air as a result of this settlement,” said Regional Administrator Susan Hedman for EPA. “Merit Energy will be installing new equipment at the company's natural gas processing facility in Kalkaska that will prevent emissions of pollutants that pose risks for people with asthma and other respiratory diseases.”
“My office is pleased with this settlement. Prevention or immediate detection and repair are critical when protecting health and the environment,” said U.S. Attorney Patrick Miles Jr. for the Western District of Michigan. “We and the EPA are vigilantly ensuring compliance with the Clean Air Act and other environmental laws.”
In addition to paying a penalty, Merit Energy will implement a comprehensive leak detection and repair (LDAR) program to reduce emissions of VOCs from leaking equipment such as valves and pumps. These emissions, known as “fugitive” emissions because they are not discharged from a stack but rather leak directly from equipment, are generally controlled through work practices, like monitoring and repairing leaks. The settlement requires Merit Energy to implement enhanced work practices, including more frequent leak monitoring, better repair practices and innovative new efforts designed to prevent leaks. In addition, the enhanced LDAR program requires Merit Energy to replace valves with new “low emissions” valves or valve packing material, designed to significantly reduce the likelihood of future leaks of VOCs. This settlement imposes the first enhanced LDAR program at a natural gas processing facility.
According to the complaint, filed simultaneously with the settlement today in the Western District of Michigan, Merit Energy allegedly violated Clean Air Act requirements to monitor and repair leaking equipment and demonstrate compliance with regulations applicable to onshore natural gas processing plants.
The consent decree is subject to a 30 day comment period and final approval by the court. A copy of the consent decree is available on the Department of Justice web site at www.justice.gov/enrd/Consent_Decrees.html.
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Naperville Man Charged in Setting Fire to Chicago Air Route Traffic Control Center in AuroraRead the Press Release
CHICAGO — A Naperville man was charged by information today on federal charges he set fire to the Chicago Air Route Traffic Control Center in Aurora on September 26, 2014, federal law enforcement officials announced today. Brian Howard, 37, of Naperville, was charged with one count of willfully setting fire to, damaging, destroying or disabling an air navigation facility; and one count of using fire to commit a federal felony. Howard will be arraigned at a date yet to be determined in U.S. District Court and remains in federal custody since his arrest in September 2014.
The Chicago Air Route Traffic Control Center (the “Control Center”) is located in Aurora, Illinois. The Control Center is responsible for safely guiding airplanes at high altitudes across its geographic territory. Given its central location, the Control Center is one of the nation’s largest and most important. It controls the air space over parts of Illinois, Indiana, Iowa, Wisconsin, and Michigan; provides air traffic services to the Chicago and Milwaukee metropolitan areas; and handles approximately 3,000,000 aircraft operations per year.
According to court documents, Howard was employed by an FAA contractor. He worked on telecommunications matters at the Control Center and at other FAA facilities for approximately eight years.
On September 26, 2014, at approximately 5:00 a.m., Howard entered the Control Center using his FAA-issued credentials. He was carrying a black Pelican suit case. Approximately 30 minutes after entering the Control Center, Howard posted a Facebook message that stated, in part, “Take a hard look in the mirror, I have. And this is why I am about to take out [the Control Center] and my life. April, Pop, love you guys and I am sorry. Leaving you with a big mess.”
Several minutes later, an individual who worked at the Control Center contacted 911 and notified emergency personnel that the Control Center was on fire. First responders arrived on the scene to heavy smoke. They observed that a floor panel had been lifted exposing the Control Center’s telecommunications cables, some of which had been severed and set on fire. First responders also saw a gas can next to the floor panel that had been pulled away, the nozzle to the gas can, a towel that appeared to have been burned, and a black Pelican suit case.
Howard is charged with intentionally damaging and disabling the telecommunication infrastructure at the Control Center, and setting fire to the area which housed these key components.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Carl Vasilko, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government is being represented by Assistant U.S. Attorney Andrew K. Polovin.
The charge alleged in the information of willfully setting fire to, damaging, destroying or disabling an air navigation facility, or willfully interfering by force or violence with the operation of that facility, likely endangering the safety of aircraft in flight, carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross loss caused by Defendant’s actions.
The charge alleged in the information of using fire to commit a federal felony carries a mandatory penalty of 10 years in prison, which must be in addition to any sentence imposed for the underlying felony.
If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Information
Morgantown woman sentenced for lying to purchase firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Julie Anette Bailes, 25, of Morgantown, West Virginia, was sentenced today to 15 months in prison after she provided a fictitious statement to a firearms dealer in order to purchase a gun, United States Attorney William J. Ihlenfeld, II, announced.
Bailes misrepresented herself as the intended buyer of a .40 caliber Glock pistol at Cashland Pawn in Morgantown. In fact, she was attempting to purchase the firearm on behalf of another individual by unlawfully misleading the pawn shop firearms dealer.
She pled guilty in January 2015 to a criminal Information charging her with one count of “False Statement in Acquisition of a Firearm,” following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mon Valley Drug and Violent Crime Task Force.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Mississippi man pleads guilty to assault at Fort PolkRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a man from Mississippi pleaded guilty to striking a man in the head with a baseball bat at the Fort Polk military base.
Justin Corey Thurston, 23, of McLain, Miss., entered a conditional guilty plea on Thursday before U.S. Magistrate Judge Kathleen Kay, to one count of assault with a dangerous weapon. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to evidence presented at the guilty plea, Thurston visited the home of his estranged wife on September 6, 2014, at the Fort Polk military base. While at his wife’s residence, Thurston and his wife were involved in a physical altercation after she refused to give him her cell phone. Thurston then exited the house and struck a man in the head with the baseball bat.
Thurston faces up to 10 years in prison, three years supervised release and a $250,000 fine.
The U.S. Army Criminal Investigation Command and the FBI conducted the investigation. Assistant U.S. Attorneys David C. Joseph and Joseph T. Mickel are prosecuting the case.
Milwaukee Man Convicted in Federal Court for Hampton Service Center RobberyRead the Press Release
United States Attorney James L. Santelle announced today that Michael A. Anglin of Milwaukee (age: 24) was convicted in federal court following a four-day trial of: (1) interference with commerce by threats of violence also known as the Hobbs Act, in violation of 18 U.S.C. §1951; (2) discharge of a firearm in furtherance of a crime of violence in violation of 18 U.S.C. §924(c)(1)(A)(iii); (3) conspiracy in violation of 18 U.S.C. §1951; (4) felon in possession of a firearm in violation of 18 U.S.C. §922(g)(1); and (5) felon in possession of ammunition in violation of 18 U.S.C. §922(g)(1).
Anglin’s convictions are based on the December 9, 2013 robbery of Hampton Service Center, an auto repair shop. Two employees were in the store at the time of the robbery. During the course of the trial, one of the employee-victims testified that he was pistol whipped, shot in the abdomen, and the bullet severed his spine. The employee’s injuries resulted in him being hospitalized for two months, and at one point he feared that he would be paralyzed.
Anglin is facing a minimum of ten years’ incarceration based on his 18 U.S.C. 924(c)(1)(A)(iii) conviction. Anglin also faces a maximum of twenty years for the Hobbs Act conviction, twenty year maximum sentence for conspiracy, ten years maximum for felon in possession of a firearm, and a ten year maximum for felon in possession of ammunition. Under federal law, no term of imprisonment can run concurrently to Anglin’s conviction for 18 U.S.C. 924(c)(1)(A)(iii).
The Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent, habitual criminals who commit armed robbery of businesses involved in interstate commerce.
This case was prosecuted by Assistant United States Attorneys Kelly B. Watzka and Jonathan H. Koenig. The investigation was conducted by the Milwaukee Police Department, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
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Members of Norteño Gang Vsp Sentenced for Racketeering Conspiracy, Accessory to Murder, Threats Against Witnesses, and RobberyRead the Press Release
SAN FRANCISCO – Three members and one associate of the Varrio South Park (VSP), a Norteño gang in Santa Rosa, Calif., were sentenced yesterday to federal prison for their participation in a racketeering conspiracy to commit violent crimes, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Ruben Quiroz, 29, Samuel Tewolde, 32, and Cesar Castellanos, 31, were each sentenced to 10 years in prison. VSP leader David Martinez, 34, was sentenced to an 18-year prison term. These defendants, all Santa Rosa residents, were the last four out of the eight total defendants charged and sentenced in the case.
The case stems from a seventeen-count indictment returned by a federal grand jury on December 10, 2013. In the indictment, six members and an associate of the VSP were charged with conspiracy to commit violent crimes, including murder and assault with a dangerous weapon, in aid of racketeering; use of firearms in furtherance of crimes of violence; robbery affecting interstate commerce; narcotics trafficking; and witness tampering. According to the indictment, VSP members and associates agreed to conduct the affairs of the enterprise through, among other crimes, narcotics trafficking, witness intimidation, robbery, and murder. Also in the indictment are allegations that Andrew Hill-Piccola, not alleged to be a gang member or associate, violated federal laws prohibiting felons from possessing firearms.
All of the defendants charged in the racketeering conspiracy — Martinez, a/k/a “Oso,” a/k/a “Fat Boy,” a/k/a “Big Homie”; Quiroz; Castellanos, a/k/a “Cheese”; Tewolde; Kalin Carrel; Lucio Mendoza; and Edmund Deneiliom — pleaded guilty to conspiring to conduct the affairs of VSP through a pattern of racketeering, in violation of 18 U.S.C. § 1962(d). They also pleaded guilty to using firearms in furtherance of crimes of violence, in violation of 18 U.S.C. § 924(c). Martinez and Quiroz also pleaded guilty to conspiracy to commit a robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951(a). Martinez also pleaded guilty to trafficking methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A). Defendants Tewolde and Castellanos pleaded guilty to separate counts of attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5).
The acts upon which these convictions were based are wide-ranging. According to the indictment and plea agreements, on August 19, 2013, Martinez and Quiroz committed a robbery that resulted in a high-speed car chase during which they threatened victims with a firearm. On September 5, 2013, Tewolde fired shots in the parking lot of a restaurant in downtown Santa Rosa at a person whom he believed to have “snitched” against other members of VSP. On October 9, 2012, Castellanos shot at a fellow gang member whom Castellanos believed had challenged his status and authority within the gang. In addition, Castellanos pleaded guilty to a count of witness tampering related to his September 14, 2013, threat to kill a witness he believed would testify against Tewolde.
Defendants Deneiliom, Mendoza, and Carrell each pleaded guilty in prior proceedings to conspiring to conduct the affairs of VSP through a pattern of racketeering, in violation of 18 U.S.C. § 1962(d), and to using firearms in furtherance of crimes of violence, in violation of 18 U.S.C. § 924(c). Andrew Hill-Piccola, not charged with racketeering, pleaded guilty in a prior proceeding on charges he was a felon in possession of a firearm.
In sum, the punishments received by the defendants are as follows:
- David Martinez – 18 years
- Edmund Deneiliom – 11 years and 3 months
- Ruben Quiroz – 10 years
- Cesar Castellanos – 10 years
- Lucio Mendoza – 6 years and 6 months
- Samuel Tewolde – 10 years
- Kalin Carell – 6 years and 6 months
- Andrew Hill-Piccola – 3 years and 1 month.
The sentences were handed down by the Honorable William H. Alsup, U.S. District Judge. Judge Alsup also sentenced the defendants to five-year periods of supervised release each. Due to their association with Norteños, Judge Alsup also ordered the defendants not to associate with Norteño gang members or any other gang members during the period of their supervised release. All the defendants are currently in custody.
Assistant U.S. Attorneys Damali A. Taylor and Marc Price Wolf prosecuted the case with the assistance of Kurt Kosek, Kevin Costello, and Daniel Charlier-Smith. The prosecution is the result of an investigation by the Federal Bureau of Investigation’s North Bay Regional Gang Task Force, with the assistance of the Santa Rosa Police Department and the Sonoma County District Attorney’s Office.
Member of ‘Dirty Block’ Atlantic City, New Jersey, Gang Sentenced to 20 Years in Prison for Drug Conspiracy and Weapons ChargesRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to 241 months in prison for his role in a criminal street gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Kareem Bailey, 21 was previously convicted by a federal jury of conspiracy to distribute one kilogram or more of heroin, possession of firearms in furtherance of a drug trafficking crime, brandishing and discharging firearms in furtherance of the conspiracy and using a cellular telephone in furtherance of the conspiracy. Bailey, Terry Davis, 26, Lamar Macon, 26, and Dominique Venable, 25, all of Atlantic City, were each convicted following a six-week trial before U.S. District Judge Joseph E. Irenas, who imposed Bailey’s sentence today in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
The four men were members of a gang known as “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,” which operated in a geographic area of Atlantic City that includes the public housing apartment complexes of Stanley Holmes Village and Schoolhouse Apartments.
The defendants participated in a violent street-level drug trafficking organization that controlled heroin sales through the possession of firearms and the use of gun violence, including at least one homicide and several non-fatal, drug-related shootings.
In addition to the prison term, Judge Irenas ordered Bailey to serve 10 years of supervised release. Davis, Macon, and Venable still await sentencing.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentence.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
Defense Counsel: John Holliday Esq., Hamilton, New Jersey
Masterminds of International Sports Gambling Ring Find There's No Safe Bet, Plead GuiltyRead the Press Release
SAN DIEGO - Two leaders and one major bookmaker for an international gambling ring pleaded guilty today to a racketeering conspiracy that took millions of dollars in illegal sports wagers over the last decade in the San Diego and Los Angeles areas. Brothers Jan Harald Portocarrero and Erik Portocarrero admitted operating for years an internet and telephone gambling enterprise called “Macho Sports,” which engaged in illegal activities on nearly a daily basis from its headquarters in Lima, Peru, and throughout Southern California. Joseph Barrios, a bookmaker for Macho Sports, also pleaded guilty today and admitted that he recruited and managed various sub-bookies for the racketeering enterprise, directing the payment of winnings and collection of gambling debts – oftentimes using threats of force. The defendants also agreed to forfeit nearly $12 million in cash, real property and other assets seized from the illegal enterprise.
According to court documents, the FBI investigation of Macho Sports began in 2011, and employed wiretaps and undercover agents to infiltrate the organization and uncover the defendants’ illegal gambling and extortionate debt collection activities. Nearly two years ago, in coordinated law enforcement actions in Norway, Los Angeles, and San Diego, FBI agents and Norwegian police arrested 18 members of Macho Sports, and seized nearly $12 million in illegal assets. Macho Sports’ leaders, Jan Harald Portocarrero and Erik Portocarrero, were both arrested in June 2013, although they were half a world apart – Jan Portocarrero surrendered to authorities in Los Angeles, California, and Erik Portocarrero was arrested in Oslo, Norway. For the next 22 months Erik Portocarrero fought his extradition from Norway, but that legal battle ended on Wednesday when the Kingdom of Norway extradited him to the United States. Today, the Portocarreros and Barrios pleaded guilty before U.S. District Judge Janis L. Sammartino, who set sentencing hearings for Jan and Erik Portcarrero on August 7, 2015, and for Joseph Barrios on September 11, 2015. Erik Portcarrero also appeared today before Magistrate Judge Ruben B. Brooks, who denied his request for bond.
According to the superseding indictment and admissions in court, Jan Portocarrero and Erik Portocarrero started their illegal gambling business shortly after the 1995 Super Bowl. Although originally from California, the Portocarrero brothers set up Macho Sports in Peru after being investigated for gambling crimes in the Los Angeles area. Using the Internet and toll-free telephone lines, Macho Sports accepted high-stakes sports bets from customers throughout California. The organization ensured the prompt payment of gambling debts through, among other means, intimidation and a violent reputation as to its treatment of delinquent customers. The co¬ conspirators avoided detection by laundering their illegal proceeds and maintaining a company headquarters and physical platform outside the United States. The Portocarreros employed managers in Peru to oversee the enterprise’s telephone and internet operations, resolve disputes and adjust customers’ lines of credit. The organization also used teams of bookies—such as Amir Mokayef of La Jolla, California (who operated primarily in the San Diego area) and Joseph Barrios (who operated primarily in the Los Angeles area)—to recruit customers, pay off winning bets, and collect losing bets. Mokayef and Barrios, in turn, managed their own network of “sub-bookies” to recruit customers and collect payments. The enterprise also used “runners,” who dealt directly with customers and maintained thousands (and sometimes millions) of dollars in cash to handle customer payments and collections. Millions of dollars from these “banks” – which the conspirators kept in their homes and safe deposit boxes – were seized by authorities as part of the investigation.
The United States continues to pursue charges and forfeitures against Macho Sports International Corporation – the Panamanian entity allegedly used by the enterprise to conduct and legitimize its illegal gambling operation.
United States Attorney Duffy commented, “Although technology has made internet gambling more accessible, it is a mistake for criminals to believe that they can hide behind computer terminals in foreign countries. The United States and our international partners will use all means necessary to combat and disrupt such crimes, which too often are characterized by organized criminals, shady bookies, and actual acts of violence.
FBI Special Agent in Charge Eric S. Birnbaum commented, “Today’s convictions mark the end of a sophisticated international gambling criminal enterprise that preyed upon the gambling addiction of its customers. It also reaffirms the FBI’s commitment to working with our domestic and international law enforcement partners, integrating intelligence into our criminal investigations and dismantling sophisticated criminal enterprises such as Macho Sports.”
DEFENDANTS Case Number: 13CR2196-JLS Jan Harald Portocarrero (1) Age: 42 Los Angeles, California Erik Portocarrero (2) Age: 44 Oslo, Norway Joseph Barrios (4) Age: 49 Marina Del Rey, California CHARGESCount 1: Conspiracy to Conduct Racketeering Enterprise (RICO Conspiracy), in violation of Title 18, United States Code, Section 1962(d).
Maximum penalties: 20 years in prison, 3 years’ supervised release, $250,000 fine, and forfeiture of all proceeds generated from operating the racketeering enterprise.
INVESTIGATING AGENCIESFederal Bureau of Investigation
Manhattan U.S. Attorney Announces $60 Million Civil Fraud Settlement with Accredo Health Group over Kickback Scheme Involving Prescription DrugRead the Press Release
Accredo Admits to Conduct Regarding Its Distribution of Exjade
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General's New York Regional Office (“HHS-OIG”) announced yesterday a $60 million settlement of a civil fraud lawsuit against ACCREDO HEALTH GROUP (“ACCREDO”) concerning a kickback scheme with NOVARTIS PHARMACEUTICALS CORP. (“NOVARTIS”) involving the prescription drug Exjade. In addition to filing a Notice of Intervention against and Stipulation and Order of Settlement and Dismissal with ACCREDO, the Government has elected to intervene against NOVARTIS over the same conduct previously filed by a whistleblower. As alleged in the lawsuit, NOVARTIS provided kickbacks, in the form of patient referrals and related benefits, to ACCREDO in exchange for ACCREDO’s recommending refills to Exjade patients. In connection with the scheme, the defendants understated the serious and potentially life-threatening side effects of Exjade when promoting the drug’s benefits to patients.
Simultaneous with the filing of the Notice of Intervention against ACCREDO, U.S. District Judge Colleen McMahon approved a settlement to resolve the United States’ claims against ACCREDO. Under that settlement, ACCREDO (i) agrees to pay $45,060,598.87 to the United States; (ii) admits numerous facts concerning its relationship with NOVARTIS; and (iii) agrees to cooperate with the United States in the prosecution of the claims against NOVARTIS. ACCREDO has also agreed in principle to pay $14,939,401.13 to a group of states to settle the states’ claims based on the same alleged conduct. In January 2014, the Government entered into a multimillion dollar settlement with another codefendant, Bioscrip Pharmacy, for similar conduct.
Manhattan U.S. Attorney Preet Bharara said: “This is the second substantial settlement with an alleged co-conspirator of Novartis in connection with a scheme that used the lure of kickbacks to co-opt a healthcare provider’s independence. As alleged in our intervention papers, Novartis used Accredo to promote refills under the guise of purported ‘counseling’ and ‘education,’ and in doing so, Novartis caused patients to receive one-sided advice that did not discuss Exjade’s serious, potentially life-threatening, side effects. This settlement with Accredo restores to the public fisc tens of millions of dollars paid out for kickback-tainted drugs.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Drug companies are required by law to provide safe and effective medications for the sole purpose of healing the ailments of their patients. Likewise, pharmaceutical companies are prohibited from employing tactics that could improperly influence a provider’s decisions. Through its relationship with Novartis, Accredo Health Group acted in its own best interest. It set aside the needs of its patients and intentionally adjusted its practices in order to conceal information from consumers. This scheme also placed a hefty price tag on our Medicare and Medicaid programs, causing more than tens of millions of dollars to be spent on Exjade shipments. Today’s settlement demonstrates the government’s commitment to protect our citizens from this type of fraud and ensure everyone receives the quality medical care they need.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “The conduct displayed by Accredo compromised patient care and undermined the integrity of our nation's health care programs. This settlement should serve as a warning to all providers that choose to let financial inducements cloud their medical judgment.”
As alleged in the Government’s second amended Complaint and in the relator’s third amended Complaint, NOVARTIS markets and manufactures Exjade, an iron chelation drug approved for use by patients who have iron overload resulting from blood transfusions. For approximately five years until 2012, NOVARTIS orchestrated a scheme whereby it offered kickbacks, in the form of patient referrals and other benefits to certain specialty pharmacies, including ACCREDO and Bioscrip, in exchange for increasing their Exjade refills through biased recommendations to patients. ACCREDO and Bioscrip were part of a NOVARTIS-created exclusive distribution network for Exjade called the Exjade Patient Assistance and Support Services (“EPASS”), and through this network NOVARTIS was able to refer Exjade patients to particular pharmacies within the network.
In particular, the Government has elected to intervene in the relator’s third amended Complaint with respect to its allegations concerning NOVARTIS and ACCREDO’s participation in an Exjade patient referral allocation scheme through which NOVARTIS gave ACCREDO additional patient referrals and related benefits in return for ACCREDO achieving the highest refill percentage for Exjade patients as compared to the refill percentages among Exjade patients at the other two pharmacies in the closed distribution network that NOVARTIS had established for Exjade.
As part of its settlement with the United States, ACCREDO made extensive factual admissions, including that:
- ACCREDO was one of three specialty pharmacies permitted to dispense Exjade as part of EPASS, NOVARTIS’s distribution network for Exjade.
- NOVARTIS controlled how many of the patient prescriptions received by EPASS were distributed among ACCREDO and the other two EPASS pharmacies.
- In June 2007, NOVARTIS began issuing monthly “Exjade Scorecards” to the EPASS pharmacies that measured, among other things, the pharmacies’ “adherence” scores. Based on discussions with NOVARTIS, ACCREDO knew that the “adherence” scores in the Exjade Scorecards were designed to show how long ACCREDO’s Exjade patients continued to order refills. ACCREDO also knew that, in calculating the adherence scores, NOVARTIS did not exclude patients who stopped ordering refills due to side effects or patients who were directed to stop therapy by their physicians.
- In late 2007 and early 2008, NOVARTIS indicated to ACCREDO that NOVARTIS was dissatisfied with ACCREDO’s performance in terms of its “adherence” scores in the Exjade Scorecards. NOVARTIS executives asked ACCREDO executives to implement an Exjade adherence improvement plan that involved additional nurse intervention. NOVARTIS executives also told ACCREDO that ACCREDO could lose undesignated patient referrals from EPASS if it continued to lag behind other EPASS pharmacies in the Exjade Scorecards.
- At a meeting in March 2008 with ACCREDO, a NOVARTIS executive made statements emphasizing the importance to NOVARTIS of ACCREDO’s adherence performance. Later that month, NOVARTIS told ACCREDO that NOVARTIS was formulating a plan to allocate undesignated patient referrals to the EPASS pharmacies based on their rankings in the Exjade Scorecards. Specifically, the EPASS pharmacy with the top adherence score in the Exjade Scorecards would receive a larger share of the undesignated patient referrals as compared to the other EPASS pharmacies. In addition, between April and June 2008, NOVARTIS managers told ACCREDO that ACCREDO’s performance in the Exjade Scorecards was below NOVARTIS’s expectation and this affected NOVARTIS’s ability to meet its sales targets for Exjade.
- In July 2008, NOVARTIS executives reiterated in statements to ACCREDO that NOVARTIS was dissatisfied with ACCREDO’s performance in relation to Exjade. Later that month, ACCREDO hired a new nurse for Exjade and assigned that nurse to make a sequence of calls to each Exjade patient.
- In making calls to Exjade patients, the nurse at ACCREDO was supposed to follow a set of call protocols that ACCREDO had developed. ACCREDO’s 2008 call protocols directed the nurse to tell patients that compliance with Exjade therapy regimen is extremely important and that, if untreated, iron overload could result in arthritis, liver or heart problems, high blood sugar, persistent abdominal pain, severe fatigue, and skin discoloration. With regard to adverse reactions, ACCREDO’s 2008 Exjade call protocols directed the nurse to advise patients about Exjade’s common adverse reactions, including diarrhea, abdominal pain, fever, and rash, but not the less common, but more severe, adverse reactions like renal or hepatic impairment.
- In October 2008, NOVARTIS informed ACCREDO about, and ACCREDO agreed to, a new patient referral allocation plan that NOVARTIS had formulated. Under that plan, NOVARTIS would allocate 60 percent of all undesignated patient referrals to the EPASS pharmacy with the top “adherence” scores in the Exjade Scorecards and allocate 20 percent of the undesignated patient referrals to each of the other two EPASS pharmacies.
- In February 2009, an Exjade executive from NOVARTIS visited ACCREDO and met with the Exjade nurse at ACCREDO. During that meeting with the NOVARTIS executive, the Exjade nurse at ACCREDO described how she handled calls with Exjade patients.
- In January 2010, the FDA required NOVARTIS to add a “black box warning” to the Exjade label to highlight that Exjade may cause renal impairment (including renal failure), hepatic impairment (including hepatic failure), and gastrointestinal hemorrhage. The FDA-mandated warning also stated that these reactions were fatal in some reported cases.
- After January 2010, no representative of NOVARTIS asked or suggested to ACCREDO that its Exjade call protocols should be revised to require the Exjade nurses to discuss the serious risks listed in Exjade’s “black box warning” when they called patients to discuss Exjade therapy.
- In February 2010, ACCREDO updated its Exjade call protocols. In terms of the adverse reactions for Exjade, the February 2010 ACCREDO Exjade call protocols continued to direct the Exjade nurses to advise patients about the common adverse reactions, such as diarrhea and rash, but not the less common, but more severe, adverse reactions discussed in the “black box warning,” such as renal or hepatic failure. As revised, the February 2010 Exjade call protocols directed the nurses to tell Exjade patients that “compliance with Exjade is very important in order to prevent the following complications that result from untreated iron overload: arthritis, high blood sugar, persistent abdominal pain, severe fatigue, skin discoloration, stroke, or death.”
- In early 2010, NOVARTIS notified ACCREDO that, under the plan they agreed on in 2008, ACCREDO would receive additional undesignated patients because ACCREDO had obtained the top adherence score in the Exjade Scorecards in the fourth quarter of 2009. Specifically, based on communications with NOVARTIS, it was ACCREDO’s understanding that it was entitled to receive 60 percent of all undesignated patients in the second, third, and fourth quarters in 2010, and for all four quarters in 2011.
- In late March 2012, NOVARTIS notified ACCREDO that, starting in April 2012, it would stop allocating additional Exjade patient referrals to the EPASS pharmacy with the highest Exjade Scorecard ranking, as NOVARTIS and ACCREDO had agreed to in October 2008.
- One month later, in April 2012, ACCREDO stopped assigning nurses to call Exjade patients to discuss their Exjade therapy.
The Government seeks treble damages and penalties under the False Claims Act for the tens of millions of dollars in reimbursements that Medicare and Medicaid paid for Exjade shipments that resulted from the kickback scheme involving NOVARTIS and ACCREDO.
The allegations of fraud stated in the Complaint were first brought to the attention of federal law enforcement by David Kester, the whistle-blower who filed a lawsuit under the False Claims Act. The False Claims Act permits the Government to recover up to three times the amount of damages incurred by the United States, plus civil penalties ranging from $5,500 to $11,000 per violation. Private parties who have knowledge of fraud committed against the Government may file suit on behalf of the Government and share in any recovery. The United States may then intervene and file its own lawsuit for treble damages and penalties, as it did in this case.
Mr. Bharara praised the investigative work of the, HHS-OIG, and the Medicaid Fraud Control Units for New York, Washington, California, and Ohio. He also thanked the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division in Washington, D.C., for its assistance in this case.
The case is being handled by the Office’s Civil Frauds Unit. Mr. Bharara established the Civil Frauds Unit in March 2010 to bring renewed focus and additional resources to combating healthcare and other types of frauds. Assistant U.S. Attorneys Li Yu, Rebecca C. Martin, David J. Kennedy, Jeffrey K. Powell, and Peter Aronoff are in charge of the case.
Macon Drug Dealer Sentenced for Possession of Cocaine with Intent to DistributeRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that, Victor Burnett, aged 33, of Macon, Georgia, was sentenced on April 28, 2015 to serve 7 years (84 months) in federal prison for possession with intent to distribute cocaine. The sentence was handed down by U.S. District Court Judge Marc T. Treadwell in Macon, Georgia.
Mr. Burnett pled guilty to the charge on January 21, 2015. As part of his plea, he admitted that he had a cocaine supplier in Atlanta, Georgia who supplied him with kilogram quantities of cocaine. Once obtained, Mr. Burnett transported the cocaine to Macon, Georgia for sale and distribution. On July 4, 2012, surveillance officers observed Mr. Burnett as he traveled to Hartsfield International Airport in Atlanta and took delivery of 1718 grams of powder cocaine which he then transported to Macon, Georgia with the intent to distribute it. A search of the vehicle revealed over $18,000 in currency in addition to the cocaine.
“Cocaine is not a problem of the past. It continues to pollute our streets because of drug dealers like Mr. Burnett. We are committed to doing whatever it takes to get these drugs off the streets, even if that means that we lock up the dealers one at a time,” said U.S. Attorney Michael Moore.
U.S. Postal Inspector in Charge Thomas L. Noyes II stated, “The U.S. Postal Inspection Service aggressively investigates cases involving the misuse of the U.S. mail system by criminals who traffic illegal contraband such as narcotics and financial proceeds. This case demonstrates the success of State and Federal agencies collaborating to bring offenders to justice.”
Mr. Burnett’s arrest was the result of a joint investigation conducted by agents with the Georgia Bureau of Investigation (GBI), Drug Enforcement Administration (DEA) and U.S. Postal Inspection Service (USPIS). Assistant United States Attorney Charles Calhoun prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Lincoln Man Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on May 1, 2015, Gabriel Alonso Ruelas-Lugo, 30, of Lincoln, was sentenced to 70 months in prison for distribution of 50 grams or more of methamphetamine. He was ordered to serve four years on supervised release following the prison term.
On September 11, 2014, Ruelas-Lugo sold 56.83 grams (approximately two ounces) of methamphetamine to an undercover officer working with the Lincoln/Lancaster County Drug Task Force in Lincoln. The officer asked Ruelas-Lugo if the officer could obtain an additional two ounces of methamphetamine, and Ruelas-Lugo agreed, telling the officer to meet with him again in approximately half an hour. At the second meeting, Ruelas-Lugo delivered an additional 56.24 grams of methamphetamine to the undercover officer. Testing indicated that the methamphetamine was over 95% pure. Ruelas-Lugo had made eight prior deliveries to the undercover officer between December of 2013 and August of 2014. Each of those sales involved approximately one ounce of a substance which tested positive for methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lexington Man Pleads Guilty to Money Laundering Charge Using BitcoinRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Joseph Patrick Gelli age 23 of Lexington has entered a plea of guilty to conspiracy to commit money laundering in violation of Title 18, United States Code, Section 1956. According to facts presented during the guilty plea hearing, Gelli was involved in trafficking illegal drugs through the use of Bitcoin, an internet based money system. Gelli used bitcoins to purchase marijuana and psychotropic mushrooms from illegal websites located on “the deep web”, a section of the internet not accessible through common search engines like Google or Yahoo. Gelli had the illegal drugs delivered to his home and then he would distribute the illegal drugs to his customers. A search of Gelli’s home revealed a variety of illicit drugs and $38,000 in cash. Sentencing in the case has not yet been scheduled, but Gelli faces a maximum penalty of twenty years of imprisonment and a fine of $500,000.
Thomas J. Holloman, III Special Agent in Charge, IRS Criminal Investigation said, "Mr. Gelli’s criminal activities involved the laundering of specified unlawful activity using Bitcoin, a virtual currency that can be used in a wide variety of crimes involving tax fraud, money laundering, and other financial crimes. IRS-CI will continue to focus on financial crimes that involve virtual currency by collaborating with FinCEN, its internal business units and other federal law enforcement agencies to identify the movement of illegal monies utilizing virtual currency.”
The case was investigated by Special Agents with the Internal Revenue Service and the Lexington County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Lawrence Man Sanctioned for Failing to Appear for Tsarnaev Jury Selection ProcessRead the Press Release
BOSTON – A Lawrence man was first lambasted by the Court and then sanctioned yesterday for his failure to appear for the final rounds of jury selection in the United States v. Tsarnaev matter.
After an evidentiary hearing on Thursday afternoon, U.S. District Court Judge William G. Young found that prospective juror Jose Gutierrez intentionally violated his obligation to serve as a juror under federal law. In particular, the court found that Gutierrez intentionally skipped jury service on March 3, 2015, in order to go to work. The Court also found that Gutierrez had proper and timely notice that he was to appear for jury duty that morning. His unexcused absence caused significant disruption to the jury selection process in a criminal trial that day. The Court concluded that Gutierrez’s conduct violated federal law relating to compliance with jury service responsibilities.
In discussing the appropriate sanction, Judge Young reminded Gutierrez that jurors, like judges, serve as “constitutional officers” during their term of service, and that serving on a jury is not only an obligation but a constitutional right. Citing the more than 1300 other persons who complied with their obligation to appear in the Tsarnaev matter, Judge Young told Gutierrez that he should “be ashamed” of his decision not to appear, particularly because Gutierrez was the only one to fail to appear as called without providing advance notice and a valid reason. Judge Young then imposed a fine of $400 and ordered Gutierrez to participate in 40 hours of community service.
“Juries are the cornerstone of our criminal justice system,” said United States Attorney Carmen M. Ortiz. “Jury service is both a right and an obligation of every citizen. When called, we must serve.”
U.S. Attorney Ortiz made the announcement today. The matter was handled by Assistant U.S. Attorneys Giselle J. Joffre and Justin D. O’Connell of Ortiz’s Civil Division.
Las Vegas Man Sentenced to 40 Years in Prison for Sex TraffickingRead the Press Release
Prostituted Two Teenage Girls in Virginia, Utah, and California
ALEXANDRIA, Va. – Lenny Paul Haskins, 34, also known as “2 Much,” of Las Vegas, Nevada, and Richmond, California, was sentenced today to 40 years in prison, followed by a life term of supervised release, for sex trafficking of a child. The court also ordered Haskins to pay $538,250 in restitution to the victims and to forfeit $738,250 to the United States.
Haskins pleaded guilty on January 8, 2015. According to court documents, since at least 2005, Haskins has been a pimp and has derived his income primarily from prostituting women and girls in numerous cities and states. By 2012, Haskins was regularly prostituting victims in northern Virginia. The United States discovered 17 women and girls who were prostituted by Haskins in the past few years. Two of the victims were less than 18 years old, and one was only 15 years old. When recruiting women and girls to prostitute, Haskins frequently would fail to mention that he would take all or nearly all of the money that these women would earn from prostitution. Haskins typically made false promises to the women and girls whom he prostituted.
Haskins frequently provided drugs to the women and girls whom he prostituted and some of the women and girls prostituted by Haskins were or became addicted to drugs.
Haskins instructed the women and girls whom he prostituted to call him “daddy.” Some of the women prostituted by Haskins were tattooed with Haskins’s moniker: “2 Much.” Haskins sometimes isolated women and girls whom he prostituted from their families and from each other as a means of preventing them from leaving Haskins.Haskins obtained sex customers for the women and girls he prostituted by posting advertisements on Internet sites such as Backpage.com, Eros.com, Cityvibe.com, and MyRedBook.com. Thousands of customers called the listed telephone numbers to arrange to perform commercial sex acts with the women and girls prostituted by Haskins.
Haskins set a monetary quota that the victims whom he prostituted were required to meet each day. For example, in some places, Haskins required these women and girls to earn $1,000 per day from prostitution, and provide him with these proceeds. When Haskins was incarcerated, he continued to run his prostitution business from jail.
Around June 2014, two minor victims encountered Haskins at a hotel around Sacramento, California, where they were prostituting. Both were runaways from foster care. Haskins provided marijuana to them and eventually recruited them to work for him. Haskins prostituted them in California, Utah, and Virginia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department. Assistant U.S. Attorney Michael J. Frank is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-CR-432.
Ken Nangauta Sentenced to 12 Months PrisonRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that KEN NANGAUTA, age 51, of Merizo, was sentenced today before Senior Judge Alex R. Munson, in the District Court of Guam, to 37 months imprisonment with credit for time served, three years supervised release and 200 hours community service.
Defendant NANGAUTA pled guilty on June 2, 2014, to Conspiracy to Distribute Methamphetamine. NANGAUTA received two packages containing ice from Las Vegas, Nevada, with the combined weight of 151 grams. He also sent money to Eder Cortez-Zelaya in Las Vegas, Nevada, to pay for the ice on behalf of his co-defendant David Quinata.
U.S. Attorney Limtiaco stated, “Our community is not immune from the poison of methamphetamine. This case illustrates the hard work our partners in law enforcement do every day to stop the distribution of methamphetamine into Guam. This conviction resulted from the concerted efforts of law enforcement partners in the OCDETF investigation, a focused multi- agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.”
This OCDETF investigation involved federal agents and local law enforcement officers of the U.S. Postal Inspection Service (USPIS), Drug Enforcement Administration (DEA), U.S. Department of Homeland Security Investigations (HSI), Guam Police Department (GPD), Guam Customs and Quarantine Agency (GCQA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. National Oceanic Atmosphere Administration (NOAA), and U.S. Coast Guard Criminal Investigative Service (CGIS). The case was prosecuted by Assistant U.S. Attorney Clyde Lemons, Jr.
Justice Department Announces $20 Million in Funding to Support Body-Worn Camera Pilot ProgramRead the Press Release
The Department of Justice today announced a $20 million Body-Worn Camera (BWC) Pilot Partnership Program to respond to the immediate needs of local and tribal law enforcement organizations. The investment includes $17 million in competitive grants for the purchase of body-worn cameras, $2 million for training and technical assistance and $1 million for the development of evaluation tools to study best practices. The pilot program is part of President Obama’s proposal to invest $75 million over three years to purchase 50,000 body-worn cameras for law enforcement agencies.
“This body-worn camera pilot program is a vital part of the Justice Department’s comprehensive efforts to equip law enforcement agencies throughout the country with the tools, support, and training they need to tackle the 21st century challenges we face,” said Attorney General Loretta E. Lynch. “Body-worn cameras hold tremendous promise for enhancing transparency, promoting accountability, and advancing public safety for law enforcement officers and the communities they serve.”
Administered by the Bureau of Justice Assistance (BJA) under the Justice Department’s Office of Justice Programs (OJP), the BWC pilot program will provide support to help law enforcement agencies develop, implement and evaluate body-worn camera programs across the United States.
“Body-worn camera technology is a valuable tool for improving police-citizen relationships,” said Director Denise O’Donnell of the Bureau of Justice Assistance. “BJA is committed to helping law enforcement agencies identify the safest and most effective methods for deploying this technology and addressing factors such as privacy, archiving and legal regulations surrounding its use. BJA stands by to guide agencies through what can be a complex process toward more successful adoption of the technology.”
The Justice Department expects to provide 50 awards to law enforcement agencies, with about one-third of the grants directed toward smaller law enforcement agencies. The grants, which require a 50/50 in-kind or cash match, can be used to purchase equipment but applicants must establish a strong plan for implementation of body-worn cameras and a robust training policy before purchasing cameras. The long term costs associated with storing this information will be the financial responsibility of each local agency.
Another $2 million will fund a national BWC Training and Technical Assistance provider through a competitive process, to assist agencies developing and enhancing their BWC programs. This training and technical assistance will provide support to law enforcement agencies to support successful implementation of their body-worn camera programs.
OJP’s Bureau of Justice Statistics (BJS) will receive $1 million of the funds to collect data on body-worn camera usage through surveys of law enforcement agencies. BJS will also design data collection forms that can be used in future surveys of prosecutors and public defenders to measure how body-worn camera footage is being used by the courts in criminal cases.
BJA will launch a BWC Implementation Toolkit in May, designed as an online resource for stakeholders. The toolkit will focus on implementation requirements, retention issues, policy concerns, interests of prosecutors, victim and privacy advocates’ concerns, along with community engagement and funding considerations.
For additional information about the BWC Pilot Implementation Program, visit this website: http://go.usa.gov/3BtMW.
Body-Worn Camera Fact Sheet
Jury Convicts Businessmen of International Fraud SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Mitchell Holland (52, San Diego, CA), Warren Rosenfeld (60, Plano, TX), and Rondell Scott Hedrick (50, Lexington, NC) guilty of multiple counts of wire fraud. Holland was convicted on nine counts, Rosenfeld was convicted on four counts, and Hedrick was convicted on three counts. Each faces up to 20 years in prison on each count.
According to evidence presented during the 12-day trial, beginning in mid-2009, when bank lending was very limited due to the economy, Rosenfeld, Holland, Hedrick, and others promoted themselves as specialists in securing and using alternative financing. During that time, individuals throughout the country contacted Holland concerning his ability to arrange for alternative capital financing through his company, Vital Funds, Inc. Holland claimed that he could arrange for a New Zealand Finance Company (Unistate Investments Savings and Loan Limited) to fund a leased Certificate of Deposit at a branch of Chase Manhattan Bank in the British West Indies. Such a bank did not exist.
The individuals seeking financing were then referred to Hendrick, who would offer to assist in liquidating the leased Certificate of Deposit. In one instance, Hedrick offered a victim in Jacksonville the opportunity to purchase a banking passport that would permit oversees banking with fewer restrictions. Hedrick had no such ability to obtain the banking passport, and simply stole the individual’s $29,000.
Rosenfeld, via his corporation, Aster Capital, Inc., represented himself as an individual who reviewed contract documents for Holland and Vital Funds in a quasi-attorney role. Rosenfeld later removed his company’s label from various contract documents and Holland and Vital Funds became the main point of contact for the clients seeking alternative financing (Leased Certificates of Deposit, Standby Letters of Credit, Proof of Funds Accounts, and Verifications of Deposit). Rosenfeld prohibited the brokers from allowing the clients to contact him.
Rosenfeld (Aster Capital), Holland (Vital Funds), and Unistate representatives split the initial account arrangement fees provided to an escrow company by the clients. These fees ranged from $300,000 to $625,500. None of the deals ultimately closed, and the clients failed to receive funding or real access to any funded account.
During the scheme, clients lost approximately $9.2 million. Holland and Rosenfeld profited in excess of $1.2 million. The remainder of the money was spread among Unistate representatives, and other brokers/participants.
Unistate Director Juan Hernandez has been charged for his role in this case, but remains a fugitive. Unistate representative Christopher Jaijairam (55, Yonkers, NY), and Glen Elliott Smith (40, New Orleans, LA) previously pleaded guilty for their roles in this scheme. Sentencing hearings for the defendants in this case have not yet been set.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney A. Tysen Duva.
Joe Davy Benavente, Jr. Sentenced TodayRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that JOE DAVY BENAVENTE, JR., age 30, of Merizo, was sentenced today before Senior Judge Alex R. Munson, in the District Court of Guam, to six months home confinement with credit for time served, four years supervised release, 200 hours community service and a drug rehabilitation program approved by the U.S. Probation Office.
Defendant BENAVENTE was charged with and pled guilty to conspiracy to distribute more than 5 grams of methamphetamine (ice). BENAVENTE sent money on behalf of co-defendant David Quinata to Eder-Cortez Zelaya in Las Vegas to pay for ice.
U.S. Attorney Limtiaco stated, “Our community is not immune from the poison of methamphetamine. This case illustrates the hard work our partners in law enforcement do every day to stop the distribution of methamphetamine into Guam. This conviction resulted from the concerted efforts of law enforcement partners in the OCDETF investigation, a focused multi- agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.”
This OCDETF investigation involved federal agents and local law enforcement officers of the U.S. Postal Inspection Service (USPIS), Drug Enforcement Administration (DEA), U.S. Department of Homeland Security Investigations (HSI), Guam Police Department (GPD), Guam Customs and Quarantine Agency (GCQA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. National Oceanic Atmosphere Administration (NOAA), and U.S. Coast Guard Criminal Investigative Service (CGIS). The case was prosecuted by Assistant U.S. Attorney Clyde Lemons, Jr.
Iowa Couple Pleads Guilty to Sex Trafficking by Force, Fraud, or CoercionRead the Press Release
Defendants admit to torturing and prostituting a woman
RICHMOND, Va. – Aldair Hodza, 36, and Laura Sorensen, 31, of Clive, Iowa, pleaded guilty today to charges of Sex Trafficking by Force, Fraud, or Coercion, and Interstate Transportation of a Person for Prostitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division, made the announcement after the plea was accepted by U.S. District Judge Henry Hudson.
Hodza and Sorensen, who were indicted by a federal grand jury on March 3, 2015, face a mandatory-minimum term of 15 years in prison and a maximum of life in prison when they are sentenced on August 14, 2015. As set forth in the plea agreement, the United States and the defendants have agreed to recommend a sentence of 35 years imprisonment on Count One and 10 years on Count Two to run concurrently. This recommendation is not binding on the court. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, the defendants admitted that on December 19, 2014, they convinced the victim to join them in their recreational vehicle (“RV”) using a ruse. When the victim arrived, the defendants took her phone, forced her to consume alcohol and marijuana, and sexually assaulted her. The defendants then told the victim that she was not free to leave and forced her to prostitute for the next several days. Sorensen and Hodza worked together to post advertisements on Craigslist soliciting the victim for sexual acts and arrange meetings for the victim to perform sexual acts for money. Sorensen collected all of the money paid for these sexual acts for use by Sorensen and Hodza.
On December 24, 2014, the defendants began their trip to Virginia to visit Hodza’s minor daughter, forcing the victim to come with them. The defendants attempted to prostitute the victim along the trip at various truck stops. Upon arriving in Virginia several days later, they went to campgrounds in Virginia and North Carolina, where they continued to force the victim to engage in prostitution. During this time, the defendants engaged in a pattern of torture and sexual abuse toward the victim, including burning the victim on her back and abdomen with a key and scissors that had been heated on the stove, putting cigarettes out on the victim’s body, whipping the victim with a rope, driving nails into the victim’s feet, and spraying bleach into the victim’s wound.
On January 6, 2015, New Kent County Sheriff’s Deputies and Virginia State Police troopers responded to a call at a gas station in Providence Forge, Virginia after a call by a concerned truck driver who observed suspicious behavior at the RV. Upon arriving, the officers entered the RV and observed the victim displaying signs of fright and malnourishment and removed her from the RV to speak with her alone. The victim then told them that she was being held against her will and abused by the defendants.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Heather L. Hart, Dominick S. Gerace, and Angela Mastandrea-Miller are prosecuting the case on behalf of the United States.
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. 3:15-cr-032.
International Competition Network Adopts Guidance on Investigative Process to Enhance Procedural Fairness in Competition Cases and Cooperation in International Merger EnforcementRead the Press Release
At its annual meeting, the International Competition Network (ICN) adopted guidance on investigative process in competition cases and approved new work on international merger enforcement cooperation, legal theories in tying and bundling investigations and interaction with government procurement agencies, the Department of Justice’s Antitrust Division announced today.
The 14th annual ICN conference, hosted by the Australian Competition and Consumer Commission (ACCC), was held from April 28-May 1, 2015, in Sydney, Australia. Over 500 delegates participated, representing more than 70 antitrust agencies from around the world, and included competition experts from international organizations and the legal, business, consumer and academic communities. Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division and Federal Trade Commission Chairwoman Edith Ramirez led the U.S. delegation. The conference showcased the achievements of ICN working groups on cartels, competition agency effectiveness, unilateral conduct, mergers and competition advocacy.
“ICN is an important forum for collaboration with our counterpart agencies around the world,” said Assistant Attorney General Baer. “Cooperation with other jurisdictions makes our own enforcement stronger, particularly in a globalized economy where the number of companies operating in multiple jurisdictions continues to rise and there is a greater risk that anticompetitive transactions or conduct in one jurisdiction will harm consumers in other parts of the world.”
Assistant Attorney General Baer spoke on a panel about international cooperation in cartel enforcement. The Cartel Working Group, co-chaired by the Antitrust Division, showcased new work on cooperation with procurement agencies and how to build constructive relationships to ensure free and fair competition in public bidding procedures.
“The ICN’s guidance on investigative process is an important step as agencies strive to be effective in promoting competition and protecting consumers,” said Chairwoman Ramirez. “Good investigative process leads to better agency decision making, protects the procedural rights of parties and bolsters the legitimacy of competition enforcement.”
The Agency Effectiveness Working Group, co-chaired by the FTC, addresses competition agency strategy, operations and investigative procedures. The working group developed ICN guidance on investigative process to promote fair and informed enforcement across all institutional frameworks and all competition enforcement areas. The guidance is based on a broad consensus among ICN members regarding the importance of transparency, engagement between agencies and parties and the protection of confidential information during investigations. It represents the most comprehensive agency-led effort to articulate guidance on investigative principles and practices that promote procedural fairness and effective enforcement. The working group also presented new on-line training modules on effective interviewing during the course of a competition investigation.
Chairwoman Ramirez participated in the Unilateral Conduct Working Group’s plenary discussion of unilateral conduct in the new economy and optimal enforcement to promote innovation. The working group promotes convergence and sound enforcement of laws governing conduct by firms with substantial market power. This year, it presented a new workbook chapter on tying and bundling as part of a practical guide to the investigation of various types of unilateral conduct.
The Merger Working Group presented a practical guide to international enforcement cooperation. It is intended to promote interagency cooperation, including for parties and third parties that seek to facilitate cooperation. The guide identifies the benefits and basic principles of enforcement cooperation such as consistent outcomes, efficient investigations, flexibility and independent agency decision making. It then highlights cooperation practices on timing alignment, information sharing, analysis and remedies. This initiative furthers the working group’s mission to promote the adoption of best practices in the design and operation of merger review laws.
To promote implementation of the ICN Recommended Practices on Competition Assessment adopted at the 2014 ICN Annual Conference, the Advocacy Working Group presented a framework of examples of the roles that competition agencies play in evaluating the effects on competition of a proposed or existing law or regulation. The working group also presented a report on developing an effective competition culture.
In 2014-2015, the ACCC led a special project devoted to the treatment of on-line vertical restraints under competition law and produced a comparative report, based on responses to a survey from 47 ICN member agencies. The report was presented in a plenary session and discussed at the conference.
The ICN was created in October 2001, when the Department of Justice and the FTC joined antitrust agencies from 13 other jurisdictions to increase understanding of competition policy and promote convergence toward best practices around the world. The ICN now comprises 132 member agencies from 119 jurisdictions.
More resources are available on the ICN website (link is external).
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on April 30, 2015, and entering pleas of Not Guilty were:
- CAROLANN CHAVIS, a 26-year-old resident of Lodge Grass, appeared on charges of assault resulting in substantial bodily injury. If convicted of the most serious charges contained in the indictment, CHAVIS faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-40
- TOMAS ALEXANDER DELAO, a 31-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, DELAO faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, Big Sky Safe Streets Task Force and Eastern Montana HIDTA. PACER Case Reference. 15-42
Appearing before U.S. Magistrate Judge Ostby in Billings on April 29, 2015, and entering pleas of Not Guilty were:
- ZACHARY KYLE AMERICAN HORSE, a 20-year-old resident of Lame Deer, appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, AMERICAN HORSE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation. PACER Case reference. 15-23
Appearing before U.S. Magistrate Judge Johnston in Great Falls on April 28, 2015, and entering pleas of Not Guilty were:
- CHERYL LYNN HEAVY RUNNER, a 52-year-old resident of Browning, appeared on charges of theft of federally provided welfare benefits by fraud and federal welfare assistance fraud. If convicted of the most serious charge contained in the indictment, HEAVY RUNNER faces10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference. 15-24
- MARCELLE HELENE PEPION, a 58-year-old resident of Browning, appeared on charges of theft of federal provided welfare benefits by fraud and federal welfare assistance fraud. If convicted of the most serious charge contained in the indictment, PEPION faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference. 15-25
- TYLER JAY REINMUTH, a 30-year-old resident of Havre, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, REINMUTH faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Drug Enforcement Administration, Russell Country Drug Task Force and Havre Police Department. PACER Case Reference. 15-29
Appearing before U.S. Magistrate Judge Ostby in Billings on April 28, 2015, and entering pleas of Not Guilty were:
- GARRET JAY COSTA, JR, A 23-year-old resident of Crow Agency, appeared on charges of assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted of the most serious charge contained in the indictment, COSTA faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 15-41
Appearing before U.S. Magistrate Judge Lynch in Missoula on April 28, 2015, and entering pleas of Not Guilty were:
- STEPHON ELIJAH COAKLEY, a 19-year-old resident of Spokane, Washington, appeared on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute methamphetamine and heroin. If convicted of the most serious charge contained in the indictment, COAKLEY faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Montana Regional Violent Crime Task Force, Federal Bureau of Investigation, Missoula Street Crimes Unit, Missoula County Sheriff’s Office Missoula Police Department and the Drug Enforcement Administration. PACER Case Reference. 15-06
- FREDERICK GLEN JOHNSON, a 47-year-old resident of Spokane, Washington, appeared on charges of conspiracy to possess with intent to distribute and to distribute controlled substances, possession with intent to distribute methamphetamine and heroin, possess and brandish a firearm in furtherance of a drug trafficking crime, felon in possession of firearm/armed career criminal, transportation of a person with intent to engage in criminal sexual activity, and interstate travel in aid of racketeering. The case was investigated by the Montana Regional Violent Crime Task Force, Federal Bureau of Investigation, Missoula Street Crimes Unit, Missoula County Sheriff’s Office Missoula Police Department and the Drug Enforcement Administration. PACER Case Reference. 15-06
Appearing before U.S. Magistrate Judge Ostby in Billings on April 27, 2015, and entering pleas of Not Guilty were:
- HARRY EDWARD ALLEN, Jr., a 33-year-old resident of Tulare, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, ALLEN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 14-115
- HOPIE DANIELLE ALVAREZ, a 41-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, ALVAREZ faces life in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 15-27
- HOPIE DANIELLE ALVAREZ, a 41-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, ALVAREZ faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 15-29
- LUKE MICHAEL DOVEL, a 20-year-old resident of Billings, appeared on charges of receipt of a firearm and ammunition by person under indictment and possession of a stolen firearm. If convicted of the most serious charge contained in the indictment, DOVEL faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Billings Police Department and Yellowstone County Sheriff’s Office. PACER Case Reference. 15-33
- JUAN CARLOS LOPEZ-FIGUEROA, a 40-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, LOPEZ-FIGUEROA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 15-29
Appearing before U.S. Magistrate Judge Ostby in Billings on April 22, 2015, and entering pleas of Not Guilty were:
- LETHA JEWELL BIXBY, a 31-year-old resident of Lame Deer, appeared on charges of felony child abuse. If convicted of the most serious charges contained in the indictment, BIXBY faces 10 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-38
- VIRGINIA MARTINEZ, a 49-year-old resident of Hardin, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, MARTINEZ faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-45
- CAROL EDITH PRETTY ON TOP, a 32-year-old resident of Lame Deer, appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, PRETTY ON TOP faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-47
Appearing before U.S. Magistrate Judge Johnston in Great Falls on April 21, 2015, and entering pleas of Not Guilty were:
- KEITH MOREHOUSE, a 30-year-old resident of Glasgow, appeared on charges of unlawful taking of a golden eagle. If convicted of the charge contained in the information, MOREHOUSE faces 1 year in prison and $100,000 in fines. The case was investigated by the United States Fish and Wildlife Service. PACER Case Reference: 15-26
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.