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Thursday 30 April 2015
Jury Convicts Hammond Resident for Gun and Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that on Tuesday, April 28, 2015, a jury convicted MELVIN JACKSON, age 34, of Hammond, of violations of federal drug and firearms laws.
After a two-day trial, the jury returned a guilty verdict on all three counts charged in the Indictment: conspiracy to distribute and possess with intent to distribute over one kilogram of heroin; felon in possession of a firearm; and possession with intent to distribute a quantity of heroin.
JACKSON faces a minimum sentence of ten years’ incarceration, and a maximum of life imprisonment. U.S. District Judge Stanwood R. Duval, Jr. set sentencing for August 12, 2015.
U.S. Attorney Polite commended the work of the Drug Enforcement Administration and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Maurice Landrieu and Brandon Long were responsible for the prosecution.
Jasper Physician Indicted for Illegally Dispensing NarcoticsRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a physician and owner of a Jasper neurology and pain clinic on illegal drug distribution charges for dispensing narcotic painkillers for other than legitimate medical purposes. U.S. Attorney Joyce White Vance, Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillott announced the charges.
An indictment filed in U.S. District Court charges Dr. MUHAMMAD WASIM ALI, 50, of Vestavia Hills, with 10 counts of unlawfully distributing controlled substances "outside the scope of professional practice and not for a legitimate medical purpose" to three people working undercover with law enforcement. Ali owns and practices at the Walker Rural Health Care/Jasper Neurological Care clinic. DEA agents arrested Ali and searched his clinic on March 27.
The 10 distribution counts charge 10 instances that Ali illegally dispensed oxycodone, an opioid painkiller, to three undercover agents between August 2014 and November 2014. According to the indictment, Ali dispensed 1,100 oxycodone pills to the three people within those three months.
"Narcotic painkillers have an important and legitimate use in medical treatment, but Alabama leads the nation in the number of prescriptions per capita for opioid painkillers," Vance said. "Opiates are extremely addictive, and the use and abuse of opioid painkillers often lead to the abuse of and addiction to heroin, which is killing people in record numbers," she said. "Physicians who provide these dangerous narcotics without justifiable medical reasons must be stopped."
"The use and abuse of prescription opioid pain relievers for non-medical reasons is at epidemic levels across the United States, and Alabama is no exception," Morris said. "The DEA enjoys outstanding relationships with the vast majority of DEA registrants, including physicians; however, physicians who have abandoned their duties and the Hippocratic Oath cannot be tolerated. Those whose sole purpose is to profit from the addictions of others will be stopped," he said. "The abuse of opioid-based drugs is deadly. DEA remains committed to removing all drug sources of supply from our communities."
“The federal laws that regulate structuring requirements are in place to detect and stop those knowingly and willfully structuring to conceal their illegal activities,” Hyman-Pillot said. “Individuals who structure currency transactions are attempting to circumvent the law. This type of suspicious behavior will be thoroughly investigated in an effort to reveal underlying criminal activity,” she said.
The indictment against Ali also charges him with two counts of illegally possessing with intent to distribute controlled substances on March 27. One count charges illegal possession with intent to distribute hydrocodone, oxycodone and fentanyl, and a second count charges illegal possession with intent to distribute amphetamine salts and oxycodone.
The indictment's 13th count charges Ali with structuring currency transactions totaling about $151,480 at Wells Fargo Bank between July 10, 2014, and Dec. 8, 2014, in order to avoid the requirement that banks report transactions of $10,000 or more to the U.S. Treasury.
The maximum penalty for the distribution counts is 20 years in prison and a $1 million fine. The maximum penalty for financial structuring is 10 years in prison and a $500,000 fine.
The DEA and IRS-CI investigated the case, which Assistant U.S. Attorney Elizabeth A. Holt is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Irs Revenue Officer Indicted for Mail and Wire Fraud, Filing False Tax Returns, Identity Theft, and PerjuryRead the Press Release
A twenty-eight-count indictment was unsealed today in United States District Court for the Eastern District of New York charging James Brewer, a resident of Staten Island, New York, with seven counts of wire fraud, mail fraud, three counts of subscribing to false federal tax returns, six counts of aiding and assisting in the preparation of false federal tax returns, ten counts of aggravated identity theft, and perjury. Brewer is a Revenue Officer of the Internal Revenue Service (IRS), assigned to the Edison, New Jersey IRS office. Brewer was arrested in Las Vegas, Nevada, and is scheduled to be arraigned tomorrow afternoon before a United States Magistrate Judge at the federal courthouse in Las Vegas.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Newark Field Office and Rodney A. Davis, Special Agent-in-Charge, Treasury Inspector General for Tax Administration (TIGTA), Washington Field Division.
“As alleged, James Brewer abused his position of trust to enrich himself,” stated Acting United States Attorney Currie. “He willfully disregarded his responsibility to deal honestly and testify truthfully, and now stands accused of a series of crimes. We will continue to work with our law enforcement partners to enforce our laws across the board.” Mr. Currie expressed his grateful appreciation to the United States Attorney’s Office for the District of New Jersey, the United States Attorney’s Office for the District of Nevada, IRS-CI, Las Vegas Field Office and the Treasury Inspector General for TIGTA, Denver Field Division for its assistance in this case.
“The crimes alleged in this indictment are very serious. While employed by the IRS to enforce our nation’s tax laws, it is alleged that James Brewer was himself breaking these laws,” stated Special Agent-in-Charge Larsen, IRS-Criminal Investigation, Newark Field Office. “Today’s indictment underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who allegedly violate the public’s trust.”
“Mr. Brewer allegedly not only stole the identities of taxpayers for personal gain but also allegedly cheated the very tax system he was paid to uphold and support. TIGTA will aggressively investigate any allegation of an IRS employee committing a criminal act that impacts federal tax administration,” said TIGTA Special Agent-in-Charge Davis.
According to the indictment, Brewer operated two outside businesses contrary to IRS regulations: he prepared tax returns for others in exchange for fees, and he operated a business selling designer clothes, collectable toys, sports memorabilia, and other items through the Internet auction site “eBay.” As part of a scheme to fraudulently reduce his taxable income and increase his tax refunds, Brewer failed to report any income he received for his unauthorized tax preparation business, underreported the gross receipts earned from his Internet retail business, and claimed false dependents on federal tax returns he prepared and filed on his behalf for three tax years. Brewer also engaged in a multi-year scheme in which he prepared and filed false tax returns for others. Brewer listed false dependents and false deductions on these returns, among other materially false information, in order to fraudulently cause his clients to receive a refund to which they were otherwise not entitled or fraudulently inflate their refunds. In doing so, Brewer listed the names and social security numbers of various individuals on those tax returns as dependents without those individuals’ authorization. As part of this scheme, Brewer also diverted a portion of those clients’ refunds to himself, in some cases without his clients’ authorization or knowledge. Finally, in an effort to fraudulently obtain for himself a tax credit for first time homebuyers, Brewer lied under oath about his residency when he testified in a matter in the United States Tax Court in New York, New York.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Marisa Megur Seifan and Moira Kim Penza are in charge of the prosecution.
The Defendant:
JAMES C. BREWER
Age: 38
Staten Island, New York
E.D.N.Y. Docket No. 15 CR 209 (PKC)
Indiana County Man Sentenced to Prison for Heroin Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. – An Indiana County resident has been sentenced in federal court to 16 months in prison and four years supervised release on his conviction of conspiracy to distribute heroin, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Douglas A. Lydic, 31, of Commodore, Pa.
According to information presented to the court, from April 2012 to March 8, 2013, Lydic conspired with his co-defendants to possess and distribute 100 grams or more of heroin.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Lydic.
Independent Contractor in Afghanistan Sentenced to 48 Months for His Role in Offering $54,000 in Bribes to A U.S. Government OfficialRead the Press Release
Earlier today at the federal courthouse in Brooklyn, Akbar Ahmad Sherzai, an independent contractor for a trucking company operating in Afghanistan responsible for delivering fuel to U.S. Army installations, was sentenced to 48 months’ imprisonment, three years of supervised release, and forfeiture of $54,000 for his role in offering a U.S. Army serviceman bribes to falsify documents to reflect the successful delivery of fuel shipments that Army records indicate were never delivered. The sentencing proceeding was held before U.S. District Judge Margo K. Brodie. Sherzai previously pleaded guilty to one count of conspiracy to commit bribery.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division, John F. Sopko, Special Inspector General for Afghanistan Reconstruction, Diego G. Rodriguez, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office, Raymond R. Parmer, Special Agent in Charge, Immigration and Customs Enforcement, Homeland Security Investigations (HSI), and Frank Robey, Director of the U.S. Army’s Criminal Investigation Command.
“Attempts to corrupt American officials will not be tolerated, either at home or abroad,” stated Acting United States Attorney Currie. “Our efforts to bring to justice those who would do so do not end at our nation’s borders.” Mr. Currie extended his grateful appreciation to each of the agencies who participated in the investigation and prosecution of this case.
The U.S. Army regularly contracts with local Afghan trucking companies to transport U.S. military equipment, fuel, and other supplies throughout Afghanistan. To ensure the companies fulfilled these requests, the U.S. Army used transportation movement requests (TMRs), which, when properly completed, verified that the shipments were successfully completed before approving payments to the trucking companies.
In April 2013, Sherzai approached a U.S. military serviceman to discuss fuel delivery missions that had been classified by the U.S. Army as “no-shows,” meaning that the fuel had not been delivered. Sherzai offered the serviceman a bribe to falsify the TMRs to reflect successful deliveries so that Sherzai’s company would receive payment and avoid penalties for failed fuel deliveries. The serviceman, under the supervision of law enforcement, continued to meet with Sherzai to discuss payments for the falsification of records. On two separate occasions, Sherzai paid the serviceman bribes in cash on American military bases in Afghanistan. On another occasion, Sherzai arranged for the serviceman’s bribe to be transferred to the United States through a hawala, an informal money transfer system. In total, Sherzai paid the serviceman $54,000 in cash to falsify 14 TMRs. Each “no show” delivery mission, absent the fraudulent TMRs, would have resulted in a fine of the company by the U.S. government of $75,000.
The government’s case is being prosecuted by Assistant U. S. Attorney Amir H. Toossi and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section.
The Defendant:
AKBAR AHMAD SHERZAI
Age: 50
Centerville, Virginia
Citizenship: Dual United States and Afghanistan
E.D.N.Y. Docket No. 14-Cr-60 (MKB)
Illegal Alien Charged with Passport Fraud and Illegal Possession of FirearmRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a citizen of the Dominican Republic illegally residing in Hazleton has been charged with attempting to obtain a U.S. passport by false statements and with illegally possessing a firearm.
According to United States Attorney Peter Smith, Jhonny Melenciano Marte, age 34, of Hazleton, was charged in a Criminal Information filed today in the United States District Court in Scranton. The Criminal Information was filed pursuant to a Plea Agreement which is subject to the approval of the court.
The case was investigated by the United States Department of State, Diplomatic Security Service, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATFE). The case is being prosecuted by Assistant U.S. Attorney Todd Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Huntsville, Alabama, Police Officer Charges with Excessive Use of Force and Obstruction of JusticeRead the Press Release
The Justice Department announced that Huntsville, Alabama, Police Department Officer Brett Russell, 48, has been charged with deprivation of rights under color of law for allegedly assaulting and injuring G.H., a detainee, on Dec. 23, 2011. Russell also has been charged with obstruction of justice for allegedly filing a false police report regarding this incident.
The indictment identifies the subject of the arrest by the initials, “G.H.” According to the indictment, Russell falsely stated in his incident report that G.H. kicked at officers, attempted to head-butt officers while they transported him to Russell's vehicle, that he was told to stop resisting several times but would not comply and that he was transported to the Huntsville metro jail “without incident.” Russell omitted from his report that he "had struck G.H. with his fist and kneed G.H. in the body," as the indictment says.
Russell faces a maximum sentence of 10 years in prison for the civil rights charge and 20 years for the obstruction charge. An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty.
The investigation by the Florence Resident Agency of the FBI is ongoing. The case is being prosecuted by Trial Attorney Carroll McCabe of the Civil Rights Division and Assistant U.S. Attorney Xavier O. Carter Sr. of the Northern District of Alabama.
Huntsville Police Officer indicted for Excessive Force in 2011 ArrestRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Huntsville police officer for using excessive force during a 2011 arrest, announced Acting Assistant Attorney General Vanita Gupta of the Justice Department's Civil Rights Division, U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
A two-count indictment filed in U.S. District Court charges that BRETT M. RUSSELL, 48, of Huntsville, assaulted a man during a Dec. 23, 2011, arrest, thereby depriving the man of his constitutional right not to be subjected to excessive force by someone acting in the official capacity of a police officer, or "under color of law." The indictment also charges that Russell obstructed justice by making false statements and concealing information in the incident report he filed on the arrest.
"We are fully committed to investigating, and prosecuting where appropriate, the use of excessive force by law enforcement officers," Vance said.
The indictment identifies the subject of the arrest by the initials, "G.H." According to the indictment, Russell falsely stated in his incident report that G.H. kicked at officers, attempted to head-butt officers while they transported him to Russell's vehicle, that he was told to stop resisting several times but would not comply, and that he was transported to the Huntsville metro jail "without incident." Russell omitted from his report that he "had struck G.H. with his fist and kneed G.H. in the body," the indictment says.
The maximum penalty for deprivation of civil rights under color of law is 10 years in prison and a $250,000 fine. The obstruction of justice count carries a maximum penalty of 20 years in prison and a $250,000 fine.
The investigation by the Florence Resident Agency of the FBI is ongoing. Assistant U.S. Attorney Xavier O. Carter Sr. and DOJ Trial Attorney Carroll McCabe are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Honduran National Pleads Guilty to Immigration OffenseRead the Press Release
United States Attorney Kenneth A. Polite announced that JOSE MARTINEZ-ROMERO, age 32, a native of Honduras, pled guilty yesterday to a one-count Indictment for illegal entry of a removed alien.
According to court documents, MARTINEZ was previously removed from the United States on April 16, 2007. MARTINEZ was later found in the Eastern District of Louisiana on March 2, 2015 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
MARTINEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. United States District Court Judge Carl J. Barbier set sentencing for June 11, 2015.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Jose Martinez-Romero Factual Basis (630.46 KB)
Hawthorne Woman Sentenced to 6½ Years in Federal Prison for Running Wheelchair Scam That Cost Medicare Nearly $3.5 MillionRead the Press Release
LOS ANGELES – A Hawthorne woman who ran a company that submitted more than $7 million in fraudulent claims to Medicare – primarily for power wheelchairs that were not needed by patients – and caused the government health insurance program to lose nearly $3.5 million has been sentenced to 78 months in federal prison.
Adeline Ekwebelem, 51, was sentenced yesterday afternoon by United States District Court Judge Michael W. Fitzgerald, who also ordered the defendant to pay $3.45 million in restitution to the Medicare program.
Following a seven-day trial last September, a federal jury found Ekwebelem guilty of 16 counts of conspiracy to commit health care fraud, health care fraud and payment of illegal kickbacks.
The evidence presented at the trial showed that Ekwebelem’s Gardena-based durable medical equipment (DME) supply company, Adelco Medical Distributors, Inc., billed Medicare for medically unnecessary DME – primarily power wheelchairs – for beneficiaries often recruited off the street. As part of the scheme, which ran from January 2007 through December 2011, Ekwebelem illegally paid kickbacks to “marketers” who recruited those beneficiaries and then paid kickbacks to a handful of complicit doctors in exchange for fraudulent prescriptions for DME.
Those doctors included Dr. Charles Okoye, who was sentenced to two years in federal prison after he pled guilty to conspiring with Ekwebelem to commit health care fraud, and Dr. Uche Chukwudi, who fled a month before trial and remains a fugitive. Three of Adelco’s marketers – Romie Tucker, Cindy Santana and Maritza Hernandez – have also received sentences of up to two years in prison for their roles in the scheme.
During the course of the scheme, Ekwebelem submitted more than $7 million in fraudulent claims to Medicare and received nearly $3.5 million. As the evidence at trial showed, Ekwebelem did more than cause substantial losses to Medicare – she also caused harm to Medicare beneficiaries. Medicare will only pay for one wheelchair every five years. On at least one occasion, Ekwebelem submitted a fraudulent claim to Medicare for a power wheelchair that she did not even let the beneficiary keep, which later prevented the beneficiary from getting a wheelchair when it was actually needed.
As prosecutors wrote in a sentencing memorandum filed with the court: “In addition to exploiting Medicare’s honor system, defendant’s scheme also took advantage of the beneficiaries’ unfamiliarity with the English language and the Medicare system, forcing them to provide their personal Medicare information and sign forms shifting liability for the power wheelchairs to them, even though the forms were neither translated nor explained to the beneficiaries. In some cases, defendant’s conduct even prevented beneficiaries from getting medical care they later needed.”
The investigation into Ekwebelem and Adelco was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation.
Release No. 15-038
Grand Isle Man Sentenced to 41 Months in Prison for Submitting a Fraudulent GCCF ClaimRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONNIE P. VEDROS, 52, of Grand Isle, was sentenced today after previously pleading guilty to one count of mail fraud.
U.S. District Judge Lance M. Africk sentenced VEDROS to 41 months imprisonment, to be followed by three years of supervised release. In addition to the term of imprisonment, VEDROS was ordered to pay $30,173.56 in restitution.
According to court documents, VEDROS’s charges stem from an application he submitted to the Gulf Coast Claims Facility (GCCF) in the aftermath of the explosion and oil spill at the Deepwater Horizon oil rig. VEDROS claimed to have lost earnings as a commercial fisherman and engineer as a result of the oil spill and provided documentation to prove his loss. In reality, as set forth in the factual basis, VEDROS was neither a commercial fisherman nor employed as an engineer at the time of the disaster and the documentation submitted had been falsified. As a result of VEDROS’s false application, he received approximately $30,173.56 in funds from the GCCF in which he was not entitled.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected]
U.S. Attorney Polite praised the work of the U.S. Secret Service in investigating this case. Assistant U.S. Attorney Tracey Knight was in charge of the prosecution.
Germantown Man Indicted for Failing to Pay $550,000 in TaxesRead the Press Release
Memphis, TN – A 46-year-old Germantown man was indicted this week on tax evasion charges for failing to file and pay more than $500,000 in income tax returns.
According to the indictment, John Ballard, a former securities/investment broker, failed to file and pay income tax returns from 2000 to 2008. Ballard’s delinquency caused him to owe $553,627.28 in back taxes. This amount, however, doesn’t include penalty charges and accrued interest.
Ballard was able to avoid satisfying his tax obligations by falsely claiming to the Internal Revenue Service (IRS) that he was unemployed and unable to find employment.
Despite owing the government, the indictment alleges Ballard was paid approximately $522,140.79 in 2009 alone from his then employer NFP Securities.
Ballard faces up to five years in prison if convicted.
The case was investigated by IRS-Criminal Investigation. The government’s case is being prosecuted by Assistant U.S. Attorney John Fabian.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Fugitive Sought in Sex Trafficking of Minors CaseRead the Press Release
GALVESTON, Texas – A criminal complaint charging three Galveston residents has been unsealed alleging they engaged in a conspiracy to traffic minors for sexual purposes and financial gain, announced U.S. Attorney Kenneth Magidson.
The criminal complaint was filed under seal April 21, 2015, and charges Charles Devan Fulton Sr., 39, Charmell Potts, 32, and Dominque Warner, 23. It was unsealed in Galveston federal court today as Warner was ordered into custody pending further criminal proceedings. Potts was previously ordered into custody where she will also remain. Fulton is considered a fugitive and a warrant remains outstanding for his arrest.
Fulton is alleged to have coerced several young females into prostitution. The victims were advertised on websites commonly known for publicizing commercial sex. The complaint further alleges that Fulton would not rent rooms himself; therefore, Potts and Warner would do so at area hotels to use for prostitution involving the young girls. The complaint also alleges Warner would drive the girls to the locations, wait until they were finished, then drive them back to Fulton’s residence in Galveston. Potts also drove the girls and would keep some of the monies earned, according to the complaint. Fulton would allegedly keep the remainder of all of the monies the victims earned.
A reward of up to $5000 is being offered by the FBI and Crime Stoppers for information that leads to the arrest of Fulton.
Anyone with information about his whereabouts is asked to call the Houston office of the FBI at 713-693-5000 or call Crime Stoppers of Houston at 713-222-TIPS (8477). Text TIP610 plus your tip to CRIMES (274637) or visit www.crime-stoppers.org. All tipsters remain anonymous.
Beginning today, Clear Channel Outdoor will post messages on digital billboards across the Greater Houston and Galveston County area to publish the reward and a picture of the fugitive. Clear Channel Outdoor is donating space and time on its digital billboards as a public service to the community.
The charges are the result of an investigation conducted jointly by the FBI and Galveston Police Department. Assistant U.S. Attorney Sherri Zack is prosecuting the case.
The prosecution 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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Fountain Inn Man Pleads Guilty to Hydrocodone ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Houston G. Leake, age 70, of Fountain Inn, pled guilty today in federal court in Greenville, to conspiracy to distribute hydrocodone and other controlled substances, a violation of Title 18, United States Code, Section 846. Senior United States District Judge G. Ross Anderson, Jr., of Anderson accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the federal Drug Enforcement Administration along with the Fountain Inn Police Department had undertaken a long-term investigation of Leake. Agents used a confidential informant and an undercover police office to make 7 buys of hydrocodone and Percocet pills from Leake. Based on the undercover buys, law enforcement executed a search warrant at Leake’s home. Inside they found various controlled substances including morphine, methadone, oxycodone and hydrocodone. Law enforcement also found various firearms.
Mr. Nettles stated the maximum penalty Leake can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100.
The case was investigated by agents of the Fountain Inn Police Department and the federal Drug Enforcement Administration. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Former aid worker from Summit County charged with sexually abusing minors in HondurasRead the Press Release
A Summit County man who worked at a homeless shelter for youths in Honduras was arrested and charged in federal court with engaging in sex with minor victims.
Corey Bryant, 25, of Norton, was arrested Wednesday afternoon following a search of his residence. Bryant charged in U.S. District Court with travelling to a foreign country to engage in illicit sexual conduct with minors.
Bryant, while working at a Honduran homeless agency as far back as 2011, engaged in sexual conduct with three minor victims -- including one as young as 9 years old, according to the criminal complaint.
Bryant was initially ordered held without bond and was ordered to appear at a subsequent bond hearing on May 4, 2015.
During the search of his residence, HSI special agents seized two thumb drives, two cell phones and a laptop computer. The devices will undergo computer forensic examination.
The federal charges are the product of an ongoing probe initiated after an anonymous tip was received December 2014 by U.S. Immigration and Customs Enforcement's (ICE) Tip Line website.
The investigation is being handled by ICE Homeland Security Investigations (HSI). HSI Transnational Criminal Investigative Unit, HSI Tegucigalpa, and the Norton Police Department assisted in the investigation.
The federal prosecution is being handled by Assistant U.S. Attorney Michael A. Sullivan.
A charges is only charge an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This investigation was conducted under HSI's Operation Predator, an international initiative to protect children from sexual predators. Since the launch of Operation Predator in 2003, HSI has arrested more than 10,000 individuals for crimes against children, including the production and distribution of online child pornography, traveling overseas for sex with minors, and sex trafficking of children. In fiscal year 2014, more than 2,300 individuals were arrested by HSI special agents under this initiative and more than 1000 victims identified or rescued.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Former Youngstown resident indicted for fraudulent purchase of a dozen homes in Mahoning CountyRead the Press Release
A 12-count federal indictment was filed charging a former Youngstown man with fraud related to the purchase of a dozen homes in Mahoning County, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Steven D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
R. Allen Sinclair, 51, of Suwanee, Georgia, was indicted on 12 counts of financial institution fraud.
Sinclair was the owner and operator of Newport Investments, LLC and Newport Development, Inc. in Youngstown. He advertised that the company was in the business of buying, renovating and selling residential real estate properties, according to the indictment.
Sinclair, through his companies, solicited money from investors, promising them annual returns of about 10 percent and telling them their funds would be used for the acquisition and renovation of properties in Youngstown. Five investors invested a total of approximately $147,000, according to the indictment.
Sinclair knew that the properties needed little or no renovation. Instead, he converted the money for his personal use, according to the indictment.
Beginning in 2005, Sinclair acquired the 12 properties – in Youngstown, Canfield, Struthers and Austintown -- through land trusts he created for each property. Sinclair fraudulently misled the sellers into believing the land trusts had assumed the mortgage payments. After making minimal monthly payments, Sinclair then stopped paying the mortgages and did not notify the sellers, who were unaware they were still obligated to the loans, according to the indictment.
As a result, the properties went into foreclosure, causing substantial losses to the lenders and the federal agencies that insured them, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Robert J. Patton and Derek Kleinmann following an investigation by the Federal Bureau of Investigation, with assistance from the U.S. Department of Housing and Urban Development -- Office of Inspector General and the Ohio Attorney General's Office.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former U.S. Marine Corps Reservist Indicted for Stealing, Selling Ammunition, Body Armor, and Training RiflesRead the Press Release
Memphis, TN – A 21-year-old former U.S. Marine Corps (USMC) reservist was indicted by a federal grand jury this week on theft of government property charges for stealing and selling assault-style training rifles, ammunition, and body armor. The indictment also alleges that the defendant used two government vehicles in an unauthorized manner.
According to the indictment, in January 2014, Armando Jaime Vazquez, Jr., of Memphis, removed an $89,000 Military-issued Hummer and $150,000 Tractor, Rubber Tired, Articulated Steering, Multipurpose Vehicle (also known as a "TRAM") from the USMC Reserve Center in Memphis.
The following month, Vazquez sold more than $4,000 worth of stolen USMC equipment to an individual. The items he unlawfully sold in February include: a Marine Corps issued Improved Load Bearing Equipment (ILBE) pack; desert tan body armor; ammunition magazines for M-16 style rifles; a Quiet Pro communications headset; and a ballistic helmet with camouflage cover.
Vazquez sold additional stolen equipment to an individual in early March, which valued at over $20,000. The stolen items included: body armor; 2 Beretta M9 inert training aids; ammunition magazines for M-16 style rifles; a Bushmaster Blue Fire M4; and a Bushmaster Blue Fire M-16 A4 with an accompanying magazine.
Vazquez faces a maximum sentence of 10 years in federal prison if convicted. He also faces up to a $250,000 fine.
The case was investigated by Naval Criminal Investigative Services and the FBI Safe Streets Task Force. The government’s case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former Springfield Police Officer Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a retired Springfield, Mo., police officer was sentenced in federal court today for possessing child pornography.
Steven Robert Magruder, 60, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to four years in federal prison without parole. The court will issue a separate order for Magruder to pay restitution to one of his victims.
Magruder retired as a corporal from the Springfield Police Department in 2005. He worked part-time from 2006 to 2014 as a security officer for Ozarks Technical Community College in Springfield and as a bailiff for the Greene County Circuit Court in 2013.
On Oct. 7, 2014, Magruder pleaded guilty to possessing child pornography.
A detective with the Jasper County Sheriff’s Department identified Magruder’s computer on Jan. 7, 2013, as sharing child pornography over the Internet. The detective downloaded 12 videos of child pornography that Magruder was sharing via a peer-to-peer file-sharing program during a 42-day period in January and February 2013. Law enforcement officers executed a search warrant at Magruder’s residence and seized his computer, which contained child pornography. A detailed forensic analysis was conducted on Magruder’s computer and indicated that Magruder had been collecting child porn for the past year.
This case was prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI, the Southwest Missouri Cyber Crime Task Force, the Jasper County, Mo., Sheriff’s Department and the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Shell Employee Ordered to Pay over $19 Million in RestitutionRead the Press Release
United States Attorney James L. Santelle announced today that Randy Jones (age: 44) of Houma, Louisiana, a former corrosion coordinator for Shell Pipeline Company L.P. (Shell) was sentenced in federal court to five years of probation and ordered to pay $19,377,785 in restitution.
Previously, Jones pleaded guilty to knowingly failing to conduct required safety test between January and December 2011 and submitting the false data to the Pipeline and Hazardous Material Safety Administration (PHMSA). Jones’ violations were connected to a pipeline owned by Shell that delivered commercial aviation jet fuel to General Mitchell International Airport in Milwaukee, WI. In January 2012, a hole was discovered in the pipeline at Mitchell Airport after jet fuel began showing up in the soil surrounding the airport and Wilson Creek. Approximately 9,000 gallons of jet fuel was released from the pipeline.
This case was investigated by the U.S. Environmental Protection Agency Criminal Investigation Division, U.S. Coast Guard Investigative Service, U.S. Department of Transportation office of Inspector General, and the Federal Bureau of Investigation with assistance from PHMSA. The case was prosecuted by Jennifer A. Whitfield of the Environmental Crimes Section of the Department of Justice and Tracy M. Johnson of the U.S. Attorney’s Office for the Eastern District of Wisconsin.
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Former Officer of Rockford Group Pleads Guilty for Role in Multi-Million Dollar Fraud SchemeRead the Press Release
Earlier today, Genadi Yagodayev, a former officer of the Rockford Group, pleaded guilty to conspiracy to commit mail and wire fraud in connection with a scheme to defraud investors of more than $10 million. Today’s plea is the fourth conviction in connection with the investigation into Rockford Group.
The guilty plea was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Philip R. Bartlett, Postal Inspector in Charge, New York Division, U.S. Postal Inspection Service (USPIS); Raymond R. Parmer Jr., Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI); and Robert J. Sica, Special Agent in Charge, United States Secret Service, New York Field Office (USSS).
“Yagodayev and his cohorts scammed unsuspecting investors through a web of lies and deceit. When the money was stolen and sent overseas, Yagodayev fled the country and thought he had escaped the reach of U.S. law enforcement,” stated Acting United States Attorney Currie. “His extradition and prosecution show that we and our law enforcement partners will leave no stone unturned in bringing to justice those who seek to defraud the investing public.” Mr. Currie expressed his appreciation to the USPIS, HSI, and USSS for their hard work and dedication over the course of this investigation and prosecution. Mr. Currie also thanked the government of Cyprus and the Department of Justice, Office of International Affairs (OIA), for their substantial assistance in the extradition of Yagodayev.
From approximately December 2008 to November 2009, Yagodayev and his co-conspirators participated in a fraudulent investment scheme through a company called the Rockford Group. The Rockford Group marketed itself as a “leading private equity firm,” claimed to invest in plaintiffs’ rights to future recoveries in personal injury and other lawsuits, and promised a 15% return on their investments. The Rockford Group, however, never invested in any lawsuits. Instead, nearly all of the investors’ funds were wired to bank accounts overseas. Approximately 200 investors in the U.S. and Canada lost approximately $11 million as a result of this scheme.
After the scheme collapsed, Yagodayev fled to Israel. In 2014, he was apprehended while traveling to Cyprus and extradited to the United States later that year.
Today’s guilty plea took place before United States District Judge I. Leo Glasser. When sentenced, Yagodayev faces up to 20 years in prison. The government’s case is being prosecuted by the Office’s Business and Security Fraud Section. Assistant United States Attorney Daniel Spector is in charge of the prosecution.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
GENADI YAGODAYEV
Age: 37
E.D.N.Y. Docket No. 14-CR-258
Former Merrill Lynch and Smith Barney Investment Adviser Receives Second Conviction for Defrauding ClientsRead the Press Release
BOSTON – A former Merrill Lynch and Smith Barney investment adviser already serving a federal prison term for investment fraud pleaded guilty on Tuesday, April 28, 2015 to additional fraud charges in connection with a nearly two-decade-long scheme to defraud clients of hundreds of thousands of dollars.
Jane E. O’Brien, 62, of Needham, pleaded guilty to three counts of mail fraud, two counts of wire fraud, and two counts of investment adviser fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Aug.6, 2015.
As alleged in the indictment, between 1995 and 2013, O’Brien defrauded several clients for whom she provided investment advisory services. As part of the scheme, O’Brien misappropriated funds entrusted to her through a variety of means, including persuading clients to withdraw money from their bank and brokerage accounts and give the money to her to invest on their behalf. After gaining control of her clients’ money, however, O’Brien made no such investments. Instead, she used the misappropriated client funds for a variety of improper purposes, including paying personal expenses, paying purported investment returns, or repaying personal loans to other clients. Finally, in order to perpetuate her fraud and conceal it from her clients, O’Brien made false statements and misrepresentations to clients, including by making lulling payments to clients and otherwise providing them with false assurances of their financial security.
Specifically, O’Brien caused one client to empty her Smith Barney brokerage account, then to borrow an additional $1 million on her home and give much of that money to O’Brien to invest. With respect to a second client, O’Brien caused the client to empty her Merrill Lynch brokerage account and give the proceeds to O’Brien, purportedly to invest in a Hollywood movie called “Crooked Arrows.” With respect to a third client, O’Brien caused the client to withdraw $190,000 from her bank account and give the proceeds to O’Brien to invest. O’Brien made none of the investments she promised.
O’Brien was previously convicted of securities fraud after pleading guilty in December 2012 to a scheme to defraud yet another client of $240,000 by selling her a security that did not exist. She is currently serving a sentence of 33 months in prison.
The charges of mail and wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of investment adviser fraud provides for a sentence of no greater than five years in prison, three years of supervised release, and a $10,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Stephen E. Frank, Deputy Chief of Ortiz’s Economic Crimes Unit.
Former Financial Manager and Church Treasurer Pleads Guilty to Mail FraudRead the Press Release
Bruce L. Johnson, 50, of Wayne City, Illinois, the former Manager of Finance and Office Services for Wayne-White Counties Electric Cooperative and Treasurer of the Wayne City First Christian Church, pled guilty today in United States District Court in Benton to a four-count information charging him with defrauding both organizations, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The information to which Johnson pled guilty alleged that between 2007 and 2013, Johnson used his trusted positions with both organizations to steal over $350,000 in Cooperative and Church funds. Throughout that time period Johnson regularly used the United States mail to send unauthorized, and in many cases forged, checks drawn on the organizations’ respective bank accounts to his personal creditors and others.
Sentencing is set for August 27, 2015, at 10:00 a.m., at the United States District Courthouse in Benton. At that time, on each count, Johnson faces up to 20 years in federal prison, a $250,000 fine, and 3 years of supervised release to follow any term of incarceration imposed. Johnson will also be required to make full restitution to his victims. Johnson will remain on bond pending sentencing.
The investigation leading to the charges and guilty plea was a cooperative effort by the Federal Bureau of Investigation, the Fairfield Police Department, and the Wayne County Sheriff’s Department.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Former FBI Assistant Special Agent in Charge in Boston Charged with Perjury and Obstruction of JusticeRead the Press Release
BOSTON – Robert Fitzpatrick, former Assistant Special Agent in Charge (ASAC) of the FBI’s Boston Field Office, has been indicted by a federal grand jury on six counts of perjury and six counts of obstruction of justice in connection with his testimony at the 2013 trial of James “Whitey” Bulger. Fitzpatrick was an ASAC in Boston between 1981 and 1986 and supervised the FBI’s organized crime squad in Massachusetts, Rhode Island, New Hampshire and Maine.
Fitzpatrick, 75, of Charlestown, R.I., who is the author of “Betrayal, Whitey Bulger and the FBI Agent Who Fought To Bring Him Down," testified under oath at the Bulger trial on July 29 and July 30, 2013. During that testimony, it is alleged that Fitzpatrick made false material declarations to aid Bulger’s defense and designed, in part, to enhance his own credibility as a former FBI official testifying for the defense.
It is alleged that Fitzpatrick falsely testified that: he was specifically sent to Boston by the Assistant Director of the FBI because there were major problems in the office, when, in fact, it was a routine reassignment and Fitzpatrick received no special instructions from the Assistant Director; that Bulger told Fitzpatrick that Bulger was not an FBI informant when, in fact, Bulger never denied to Fitzpatrick that Bulger was an informant; that Fitzpatrick tried to close Bulger as an FBI informant but was overruled by, among others, FBI headquarters when, in fact, Fitzpatrick never advocated that Bulger be closed as an informant; that he was not demoted and reduced in grade because of charges related to a shooting incident, when, in fact, Fitzpatrick was demoted due to his falsification of reports related to his investigation of a shooting incident; and that he personally arrested mob boss Jerry Angiulo when, in fact, Fitzpatrick did not arrest Jerry Angiulo. Finally, it is alleged that Fitzpatrick falsely testified that he personally found the rifle that was used to assassinate Dr. Martin Luther King, Jr. in Memphis in 1968, “having just missed James Earl Ray, the shooter.” According to the indictment, Fitzpatrick was not the first officer at the scene who recovered the weapon used to assassinate Martin Luther King.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 on each of the six perjury counts and a sentence of no greater than 10 years in prison on the obstruction of justice counts. The 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.
Fitzpatrick is scheduled to have his initial appearance before U.S. Magistrate Judge Donald L. Cabell later today.
United States Attorney Carmen M. Ortiz and Michael E. Horowitz, Inspector General for the Department of Justice made the announcement today. This matter is being investigated by the Department of Justice Office of the Inspector General and is being prosecuted by Assistant U.S. Attorney Zachary R. Hafer of Ortiz’s Public Corruption and Special Prosecutions Unit.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former El Paso Couple Sentenced to Federal Prison for their Roles in an Identity Theft and Fraudulent Tax Refund SchemeRead the Press Release
In El Paso, 34–year-old Curtis Joshua Cooper (aka “Kelvin Afanador-Rodriguez”) and 30-year-old Brandie Malfavon were sentenced to 29 months and eight months in federal prison, respectively, for their roles in an identity theft and fraudulent tax refund scheme announced Acting United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
In addition to the prison terms, U.S. District Judge Frank Montalvo ordered that the defendants pay $22,749.55 restitution to the Internal Revenue Service and that they be placed on supervised release for a period of two years after completing their prison terms.
On January 13, 2015, Cooper and Malfavon pleaded guilty to one count of conspiracy to commit wire fraud. Cooper also pleaded guilty to one count of aggravated identity theft. According to court records, from January 2010 until March 2011, the defendants conspired to obtain refunds derived from fraudulently prepared income tax returns. Cooper, admittedly, used names, dates of birth and social security numbers he purchased to electronically submit fraudulent income tax returns to the Internal Revenue Service. The refunds, which were claimed and received by Cooper based on those fraudulent income tax returns, were transferred by wire from the Federal Reserve Branch in New York to bank accounts in El Paso that were opened by Malfavon.
“The actions of these criminals to steal the identities of innocent, hardworking Americans in order to use the ill-gotten funds for personal gain are disgraceful,” said IRS-Criminal Investigation Special Agent in Charge William Cotter, San Antonio Field Office. “Identity theft is a serious crime that hurts innocent taxpayers and IRS Criminal Investigation is determined to stop these criminals and bring them to justice.”
This case was investigated by the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Adrian Gallegos prosecuted this case on behalf of the Government.
Former Dubberly postmaster sentenced to two years' probation for money order fraudRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Ruston woman was sentenced to two years of probation and a $1,000 fine for cashing money orders without posting payments to the U.S. Treasury.
Amanda Murphy, 36, of Ruston, La., was sentenced by U.S. District Judge Donald E. Walter on one count of misappropriation of postal funds. According to evidence presented at the January 22, 2015, guilty plea, Murphy intentionally delayed reporting 37 money orders, which totaled $10,318.76 from December 13, 2013 to February 10, 2014, while serving as Postmaster for the Dubberly Post Office. When questioned by agents, Murphy admitted to cashing the money orders to herself and delaying payments. She also falsified U.S. Postal Service daily reports on money order transactions in order to accomplish the scheme. Agents also audited her cash drawer and found a $1,077.17 shortage. Murphy has paid all restitution in full.
The U.S. Postal Service-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Former Controller of Non-Profit Organization That Funds Medical Research Pleads Guilty in Manhattan Federal Court to Embezzling over $1.8 Million and Tax EvasionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that KAREN ALAMEDDINE, a/k/a “Karen Dean,” the former controller of a New York-based non-profit organization whose core mission is to cure genetic illnesses by supporting biomedical research (the “Non-Profit”), pled guilty in Manhattan federal court to embezzling more than $1.8 million from the Non-Profit, and to tax evasion for deliberately failing to report to the IRS as income the money she embezzled. ALAMEDDINE was initially charged in November 2014, and entered her guilty plea today before United States District Judge Gregory H. Woods.
Manhattan U.S. Attorney Preet Bharara said: “As she admitted in Court today, over the course of five years Karen Alameddine stole almost $2 million that she, as controller of an organization, was responsible for overseeing and safeguarding. To make matters worse, her victim was a non-profit organization dedicated to finding cures for serious diseases, and she compounded her embezzlement with tax crimes.”
According to the Complaint, the Indictment, and proceedings in Manhattan federal court:
From approximately late 2008 through early 2014, while working as the controller for the Non-Profit, ALAMEDDINE diverted over $1.85 million of the Non-Profit’s funds to her own bank accounts and for her own personal use. ALAMEDDINE executed the scheme principally by disguising QuickBooks entries to make transfers to her personal bank account appear as if they were transfers made to pay grant recipients of the Non-Profit. ALAMEDDINE further sought to disguise the fraud by inventing a fictitious accounting firm named “Davis & Greene,” purportedly based in Washington, D.C., which was, according to ALAMEDDINE, retained to prepare certain tax returns for the Non-Profit for the 2012 and 2013 tax years.
After ALAMEDDINE fraudulently transferred the funds from an account belonging to the Non-Profit to a personal bank account, she further transferred the funds to other accounts she controlled, and thereafter used those funds for various personal expenses, including to pay personal bills. Among the personal items ALAMEDDINE paid for with the embezzled money were utility bills, car payments, jewelry, the purchase of a recreational vehicle, her personal mortgages, and leisure travel.
In addition, for each of the calendar years 2009 through 2013, ALAMEDDINE filed tax returns with the Internal Revenue Service (“IRS”) in which she deliberately omitted reporting the income she received from the fraud. Those deliberate omissions resulted in ALAMEDDINE’s evasion of substantial amounts of income tax for each of the years between 2009 and 2013.
ALAMEDDINE, 57, of Perris, CA, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of tax evasion, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. ALAMEDDINE will be sentenced by Judge Woods on August 14, 2015, at 2:30 p.m.
Mr. Bharara praised the outstanding investigative work of the IRS and the U.S. Postal Inspection Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Stanley J. Okula is in charge of the prosecution.
Former CEO and President of Gateway Bank Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
Earlier today, Poppi Metaxas, the former President and Chief Executive Officer (CEO) of Gateway Bank, FSB (Gateway) pleaded guilty to conspiracy to commit bank fraud for her role in defrauding the bank of more than $1.8 million in the aftermath of the financial crisis.
The guilty plea was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Christina Scaringi, Special Agent-in-Charge, Northeast Region, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG).
“As Gateway Bank struggled to survive under the burden of its accumulated toxic assets, its CEO Poppi Metaxas turned to sham transactions to deceive regulators and convince them that the bank had rid itself of its bad loans and underwater real estate holdings. Today’s guilty plea puts bank officers on notice that they will be brought to justice if they resort to lies and deceit to fix mistakes of the past,” stated Acting United States Attorney Currie. Mr. Currie thanked the FBI, SIGTARP, and HUD-OIG for their hard work and dedication through the course of this five-year investigation and prosecution.
According to court filings and the facts presented at the plea hearing, between 2009 and 2010, Metaxas engaged in a scheme to defraud Gateway in connection with Gateway’s sale of non-performing assets and mortgage loans to three entities in exchange for $15 million. Specifically, Metaxas caused Gateway to enter into a sham loan agreement with Ideal Mortgage Bankers Ltd. d/b/a Lend America, a Long Island mortgage lender and Gateway’s largest mortgage lending client. Metaxas and her co-conspirators, through a series of wire transfers, then used the proceeds of that sham loan to satisfy the 25 percent down payment that the three entities owed to Gateway in connection with the sale of the non-performing assets and loans. To conceal the fraudulent “round trip” nature of the loan funds, Metaxas deceived the board of directors of Gateway and, in October 2009, she provided false testimony to bank regulators when asked about the source of the down payment.
Today’s guilty plea took place before United States District Judge Joseph F. Bianco at the United States Courthouse in Central Islip, New York. When sentenced, Metaxas faces up to five years in prison.
The government’s case is being prosecuted by the Office’s Business and Security Fraud Section. Assistant United States Attorneys Walter M. Norkin and Christopher L. Nasson are in charge of the prosecution.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
POPPI METAXAS
Age: 62
Hillsborough, California
E.D.N.Y. Docket No. 14-CR-190 (JFB)
Former Boston Police Officer Sentenced for Making False StatementsRead the Press Release
BOSTON – A former Boston Police Officer was sentenced today in U.S. District Court in Boston for making false statements to the FBI relating to an investigation of the Academy Homes Street Gang (AHSG), a violent narcotics trafficking gang that operated out of the Academy Homes housing development in Roxbury.
Mel Steele, 36, of Boston, was sentenced to one year of probation and a fine of $2,000. In December 2014, Steele pleaded guilty to one count of making false statements to the FBI during the course of a federal investigation.
Steele, who was assigned to the Boston Police Department’s (BPD) Youth Violence Task Force (YVTF), was a long-time friend of an associate of the AHSG. During the course of joint FBI-BPD investigation of the AHSG from 2009 to 2011, Steele provided assistance to the AHSG associate. On one occasion, Steele allegedly used his BPD computer to run a license plate check on a vehicle which was later determined to be an unmarked BPD vehicle operated by a detective who was conducting surveillance on the AHSG. On another occasion Steele contacted a Massachusetts State Trooper to glean information about a gang member’s pending charges on another criminal case. In May 2011, Steele made false statements about these matters when confronted by FBI agents.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The investigation was conducted jointly by the FBI Public Corruption Unit and the Boston Police Department Anti-Corruption Division. The case was prosecuted by Assistant U.S. Attorney Dustin Chao of Ortiz’s Public Corruption and Special Prosecutions Unit.
Florida Men Sentenced for Poisoning Wildlife and Hunting Dogs in Bullock CountyRead the Press Release
Montgomery, Alabama - Daryl Fischer of Seminole, Florida and Russell Taylor of Loxahatchee, Florida were sentenced on Tuesday, April 28, 2015, to terms of probation for improper use of the pesticide Aldicarb, which is marketed as Temik, announced the United States Attorney for the Middle District of Alabama, George L. Beck, Jr.
The two men were members of a hunting club leasing Bucksnort Plantation near Fitzpatrick, Alabama, and on January 31, 2014 sprinkled granules of Temik on portions of a deer carcass that they spread around the property in an effort to kill coyotes. Temik is toxic to fish, birds and other wildlife, and is not approved for use as a poison for animals. The poisoning resulted in significant loss of animal life, including three fox-hunting dogs, two red-tailed hawks, and a black vulture. In addition to their terms of probation, Fischer and Taylor are prohibited from hunting all game animals for one year, including deer and migratory birds; are ordered to pay restitution and fines in the amount of $14,249.79; and will be responsible for publishing a public notice in the Union Springs Herald regarding the misuse of toxic pesticides.
“Using pesticides for purposes other than their registered use is illegal and puts people, animals and the environment at risk of exposure,” said Maureen O’Mara, Special Agent in Charge of the Environmental Protection Agency’s criminal enforcement program in Alabama. “Pesticide labels and usage instructions must be followed carefully to ensure safe application. Today’s sentence sends a strong signal that individuals who knowingly misuse these products and kill protected wildlife will be prosecuted.”
“This investigation was highly successful because of the collaborative efforts from everyone who worked on this important investigation,” said Luis Santiago, Special Agent in Charge of the Fish and Wildlife Service Office of Law Enforcement program in the southeast. “Our agents will continue to work with federal, state, and local agencies to vigorously pursue those who misuse registered use pesticides.”
“I want to commend the EPA Criminal Investigation Division and the U.S. Fish and Wildlife Service for their outstanding work in this case,” stated U.S. Attorney Beck. “We must protect our wildlife and environment for generations to come.”
This case was investigated by the United States Environmental Protection Agency Criminal Investigation Division and the United States Fish and Wildlife Service Office of Law Enforcement. This case was prosecuted by Assistant United States Attorney Gray M. Borden.
Federal Judge Hands Down 10-Year Sentence to Former Chief Accounting Officer for Beazer Homes USA, Inc.Read the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Michael T. Rand, 52, of Sandy Springs, Ga., to 120 months in prison and to three years of supervised release on conspiracy and obstruction of justice charges in connection with federal investigation into a seven-year accounting fraud conspiracy at Beazer Homes USA, Inc. (“Beazer”), announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. In July 2014, a federal jury convicted Rand of the charges following a two-week retrial. Rand, who was the former Chief Accounting Officer for Beazer, was previously found guilty in October 2011, however that verdict was later vacated due to juror misconduct, which prompted the presiding judge to order Rand’s retrial.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins Acting U.S. Attorney Rose in making today’s announcement.
The charges against Rand arise from a government investigation involving Beazer and its employees that began in March 2007. In July 2009, Beazer was charged with, among other things, participation in the conspiracy and securities fraud with Rand. Beazer accepted responsibility for those charges and, in a deferred prosecution agreement, agreed to pay restitution of $50 million. Rand was indicted by a federal grand jury in August 2010.
“As the Chief Accounting Officer of a publicly-traded company, Rand had an obligation to Beazer’s investors and the public to abide by accounting rules and maintain proper books and records that accurately reflected the company’s financial status. Corporate corruption erodes the public’s trust in our financial system which can have an adverse effect on our economy. Rand’s sentence reflects the seriousness of his offense and underscores my office’s commitment to protecting Americans from executives that engage in corporate fraud,” said Acting U.S. Attorney Rose.
“As evidenced by the significant efforts of the investigative and prosecutive team, the FBI remains committed to holding corporate executives responsible for any and all malfeasance which affects America’s financial markets. The ordinary investor should have confidence in the accuracy of corporate accounting requirements and rest assured that executives who place their personal interests above all others will be held responsible. The two juries who heard the complicated testimony in this matter clearly agreed with this position,” stated John A. Strong, Special Agent in Charge for the Charlotte Division of the FBI.
A federal jury found that, while serving as Beazer’s Chief Account Officer, Rand directed an accounting fraud conspiracy to falsify reported profits at Beazer by lying to Beazer’s auditors, fraudulently achieving earnings targets, falsifying Beazer’s books and records, and deceiving the public by boosting and lowering company earnings. Rand was convicted of conspiracy to commit securities fraud, to make false and misleading statements to auditors and accountants, to circumvent Beazer’s internal accounting controls, and to falsify the books, records, and accounts of Beazer. He was also convicted of engaging in wire fraud conspiracy.
According to court documents and evidence presented at Rand’s second trial, Rand executed the conspiracy in two main ways: Between 2005 and 2006, Rand entered into a hidden oral side agreement with another company through one of its employees, which was designed to allow Beazer to obtain cash and to improperly report revenue from purported “sales” of model homes. This activity was in direct contravention of the accounting rules and hidden from Beazer’s auditors. Between 2000 and 2007, Rand directed a scheme to commit securities fraud and create false books and records at Beazer by practicing “cookie jar accounting,” which allowed Rand and others to falsely report profits in Beazer’s publicly reported financial statements.
The jury also convicted Rand of obstruction of justice in relation to a federal grand jury investigation. Trial evidence showed that after being notified of the federal grand jury’s investigation of Beazer in March 2007, Rand deleted nearly 6,000 emails, obstructing the grand jury investigation then focused on the separate investigation into mortgage fraud at Beazer.
Finally, the jury convicted Rand of lying to hinder an investigation by making numerous false statements to investigators on behalf of the Audit Committee of Beazer’s Board of Directors, after learning that such false statements would be reported to the FBI and the U.S. Attorney’s Office.
In announcing today’s sentence, Judge Conrad described the defendant’s conduct as Chief Accounting Officer at Beazer as “criminal, dishonest and corrupt,” with “repeated acts to cook the books,” and as a result, “illegality became a norm” at Beazer. The Court emphasized that its sentence was intended to deter others because our “markets depend on the integrity of accounting officers.”
Following the sentencing hearing Rand was released on bond. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Acting U.S. Attorney Rose credited FBI special agents for the investigation leading to today’s sentence. She also thanked the U.S. Securities & Exchange Commission for their invaluable assistance throughout the investigation.
Assistant U.S. Attorneys Kurt W. Meyers and Maria K. Vento of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Federal Inmate at Talladega Indicted for Assaulting Correctional OfficerRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted an inmate at the Federal Correctional Institution in Talladega for assaulting a correctional officer at the prison in May 2014, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
The one-count indictment filed in U.S. District Court charges that CORNELIUS MOORE, 39, assaulted a correctional officer engaged in official duties, and that the assault involved physical contact.
The charge carries a maximum sentence of eight years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Frank M. Salter is prosecuting.
Federal Inmate Pleads Guilty to EscapeRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on April 30, 2015, Kim T. Collins, 38, formerly an inmate at the Federal Correctional Center in Forrest City, Arkansas (FCC-Forrest City), pled guilty to an Indictment charging him with Escape. Collins faces a new term in federal prison of not more than five years, a fine up to $250,000, or both, and a term of supervised release of not more than three years. Collins’ sentencing is scheduled for August 7, 2015, in East St. Louis, Illinois. Collins has been detained (held without bond) since his arraignment on the Indictment in March 2015.
Facts revealed in Court showed that on March 8, 2013, Collins was sentenced to a total of 135 months in prison for drug offenses. On September 4, 2014, Collins was furloughed from FCC-Forrest City to the United States Penitentiary in Marion, Illinois ("USP-Marion"). With a furlough, the Bureau of Prisons allows low-risk inmates to travel from one facility to another without a law enforcement escort. In this case, Collins was to travel to Marion via Greyhound Bus and then take a taxi to the prison. Collins never showed up at USP-Marion, and never contacted either USP-Marion or FCC-Forrest City to explain why he did not do so. In fact, Collins had been picked up by an individual at the bus stop on September 4, 2014, and went to Alton rather than USP-Marion.
The case was investigated by the Bureau of Prisons and the United States Marshals Service. The case is assigned to Assistant United States Attorney Angela Scott.
Federal Grand Jury Indicts Hoover Man for Producing and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Jefferson County man on multiple charges of producing child pornography, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Hoover Police Chief Nick Derzis.
A six-count indictment filed in U.S. District Court charges MICHAEL JAMES MORGAN, 61, of Hoover, with possessing and producing child pornography in 2014 that involved a child under 12 years old.
The maximum penalty for producing child pornography is 30 years in prison and a $250,000 fine, per count. The maximum penalty for possessing child pornography is 20 years in prison and a $250,000 fine.
The FBI and the Hoover Police Department investigated the case, which Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting.
An indictment contains only charges. A defendant is presumed innocent of the charges unless and until proven guilty.
Federal Drug Charges Filed Against Truck Driver Arrested in KCKRead the Press Release
KANSAS CITY, KAN. – Federal drug charges have been filed against a man arrested Tuesday in Kansas City, Kan., U.S. Attorney Barry Grissom.
Domingo Uriarte,41, Los Angeles, Calif., is charged with one count of possession with intent to distribute methamphetamine. An investigator’s affidavit filed in the case alleges Uriarte had approximately 100 pounds of methamphetamine in his truck when the Kansas Highway Patrol stopped him April 28 in Kansas City, Kan., for a traffic violation.
A trooper stopped Uriarte’s Ford F650 box truck near 10th and Kansas Avenue. In a large wooden crate containing a metal lathe, investigators found 15 tightly-wrapped bundles containing approximately 100 pounds of methamphetamine. While the truck was being inspected, Uriarte attempted to flee but was quickly recaptured.
If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million. The Kansas Highway Patrol and the Kansas City, Kan. Police Department investigated. Special Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Fall River Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – Frank Almeida, 49, of Fall River, pleaded guilty Wednesday, April 29, 2015, to distribution and possession of child pornography. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 30, 2015.
In June 2014, law enforcement officers became aware that an individual had posted child pornography to “megachat.us,” a public Internet file sharing program. Federal agents examined the files, determined that they contained pictures and videos of minors engaged in sexually explicit conduct, and had been posted by Almeida. When federal and state law enforcement officers executed a federal search warrant on Almeida’s residence, they seized a computer and various digital storage devices containing multiple images and videos of child pornography.
The charging statutes provide for a minimum mandatory term of five years and no greater than 20 years in prison, and a minimum mandatory term of five years and up to a lifetime of supervised release. 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; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Fall River Police Chief Daniel S. Racine, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Members of the public who have questions, concerns or information regarding this case should call (617) 748-3274.
Essex County, New Jersey, Man Convicted for Multiple Armed CarjackingsRead the Press Release
NEWARK, N.J. – A Newark man was convicted today for his role in three gunpoint carjackings and an attempted carjacking within a 10-day period, U.S. Attorney Paul J. Fishman announced.
Jamie Manning, 29, was convicted on all nine counts of a superseding indictment: one count of conspiracy to commit theft of a motor vehicle by force, violence and intimidation; three counts of carjacking; one count of attempted carjacking; and four counts of using a firearm in furtherance of a crime of violence. Manning was convicted following a six-day trial before U.S. District Judge William H. Walls in Newark federal court. The jury deliberated for six hours before returning the verdict.
According to documents filed in this case and statements made in court:
On Dec. 20, 2012, Manning and another conspirator approached the owner of 2004 Honda Accord. Manning pressed a firearm into the victim’s side and demanded that the victim give him keys to the car. Manning and the other conspirator took the victim’s keys and purse, demanded the PIN to the victim’s debit card and attempted to push the victim into the Accord’s trunk. Manning and the other conspirator got into the Accord and fled.
During the early morning hours of Dec. 26, 2012, Manning and Corey Thermitus, 22, of Newark, approached two individuals entering a parked, 2002, four-door Nissan Altima on a street in Newark. Manning pointed a firearm at one of the victims and both Manning and Thermitus ordered the victims to get out of the car. After robbing and threatening the victims, Manning and Thermitus fled the area in the carjacked vehicle.
On Dec. 28, 2012, Thermitus approached an individual sitting in a 2011, four-door Honda Accord that was parked in the driveway of a home in Newark. Thermitus pointed a firearm at the victim and ordered the victim out of the car. After threatening to shoot the victim, Thermitus, Manning and another man fled the area in the victim’s car.
Later that night, Thermitus, Manning and a third man drove in the carjacked Honda Accord to a residential area in Newark. Thermitus and Manning approached two individuals, one of whom was a young child, who were sitting in a parked, 2006, four-door Nissan Pathfinder in the driveway of a residence. Thermitus pointed a gun at the driver of the vehicle while Manning approached the rear passenger side of the vehicle, but the driver managed to escape in the car. As the assailants fled in the Honda Accord, Thermitus fired a gun in the direction of an individual who had come outside of a residence to investigate.
The conspiracy count carries a maximum potential penalty of five years in prison. The carjacking and attempted carjacking counts each carry a maximum potential penalty of 15 years in prison. The charge of using a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each additional firearms charge carries a mandatory 25 years which must run consecutively to any other prison term. Each count also carries a maximum $250,000 fine. Sentencing is scheduled for Aug. 25, 2015.
Thermitus previously pleaded guilty to an information charging him with three counts of theft of a motor vehicle by force, violence and intimidation; one count of attempted theft of a motor vehicle by force, violence and intimidation; and one count of discharging a firearm in furtherance of a violent crime. His sentencing is scheduled for May 19, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Police Department, under the direction of Director Eugene Venable, with the investigation leading to today’s verdict.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the Organized Crime/Gangs Unit in Newark and Senior Litigation Counsel Vincent Grady O’Malley of the Criminal Division in Newark.
Defense counsel: Frank Arleo Esq., West Orange, New Jersey
manning_jamie_superseding_indictment.pdf
Essex County Corrections Officer Admits Accepting Cash Bribes in Exchange for Smuggling Contraband into the Essex County JailRead the Press Release
NEWARK, N.J. – An Essex County corrections officer today admitted accepting bribes in exchange for smuggling contraband, including cell phones and tobacco, into the Essex County Jail, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
John Grosso, 41, of Belleville, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiring to commit extortion under color of official right.
According to the documents filed in this case and statements made in court:
Grosso, a corrections officer at the Essex County Jail, admitted that in December 2013, he agreed to accept cash bribes in return for his assistance smuggling cell phones and cigarettes to an inmate. Grosso met with the inmate’s relative in Secaucus, New Jersey, to accept the contraband and bribe before delivering the items to the inmate.
The conspiracy charge to which Grosso pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000. Grosso also must forfeit the $1,000 bribe he received in December 2013. Sentencing is scheduled for Aug. 19, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the Internal Affairs Division of Essex County Correctional Facility, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Robert L. Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.
Defense counsel: Elizabeth H. Smith Esq., Mendham, New Jersey.
Elk Grove Man Sentenced to More Than 4 Years for $2.5 Million Embezzlement SchemeRead the Press Release
Sacramento, Calif. — Vincent J. Doyle, 56, formerly of Elk Grove, California, was sentenced on Wednesday by United States District Judge Kimberly J. Mueller to 51 months in prison for mail fraud arising out of his embezzlement from his former employer of more than $2.5 million. Doyle was also ordered to pay over $2.5 million in restitution.
According to court documents, Doyle was the Chief Financial Officer for a civil engineering firm located in Sacramento and El Dorado counties. From 2001 until he retired from the firm in 2009, Doyle used his position to write unauthorized checks in small varied amounts from the firm’s bank accounts that totaled over $2.5 million. In order to conceal his fraud, Doyle often entered false payee information into the firm’s checkbook register and opened a Post Office box to receive mail associated with his fraud. According to court documents, the defendant used a great deal of the money to pay the expenses for an exotic dancer/prostitute, including plastic surgery.
This case is the product of an investigation by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Lee S. Bickley.
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East St. Louis Man Pleads Guilty to Firearm ChargeRead the Press Release
Demetrius Booker, 28, of East St. Louis, Illinois, pled guilty in United States District Court in East St. Louis, on April 29, 2015, to an indictment charging him with being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment alleged that Booker was found to be in possession of a 9 mm handgun on October 19, 2014. Prior to that date, Booker had been convicted of a felony offense which made it illegal under federal law for him to possess firearms or ammunition.
Sentencing is set for August 7, 2015, at 9:00 a.m. at the United States District Courthouse in East St. Louis. At that time, Booker faces up to 10 years in prison, a $250,000 fine, and 3 years of supervised release to follow his incarceration. The firearms and ammunition he illegally possessed will also be forfeited to the United States. Booker has been held without bond in the custody of the United States Marshal since his arrest on the federal charges. He was returned to the Marshal’s custody to await sentencing.
The case was investigated by the East St. Louis Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Michael Hallock.
Eagle Butte Man Sentenced for Misprision of A FelonyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Misprision of a Felony was sentenced on April 27, 2015, by U.S. District Judge Roberto A. Lange.
Eugene Condon, age 35, was sentenced to 12 months of probation, a $100 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Condon was indicted by a federal grand jury on July 15, 2014, for Possession and Sale of a Stolen Firearm. On February 3, 2015, Condon pled guilty to a Superseding Information charging him with Misprision of a Felony.
The conviction arose from an incident that occurred on October 4, 2013, at Eagle Butte, when Condon failed to report a serious crime, even though he was present and very aware that a federal crime had been committed.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Dairy Company Owner Sentenced to Six Months of Home Detention and Ordered to Pay $15,000 Fine for Discharging 11,000 Gallons of Cow Feces into the French Broad RiverRead the Press Release
ASHEVILLE, N.C. – William “Billy” Franklin Johnston, the owner of one of North Carolina’s largest dairy farms located in Fletcher, N.C., was sentenced today to four years of probation, six months of which he has to spend in home detention, for his role in the discharging of cow feces into the French Broad River, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge Dennis L. Howell also ordered Johnston to pay a $15,000 fine. The dairy company, Tap Root Dairy, LLC (Tap Root), was also fined $80,000 and was placed on a four-year probationary term. The company is also required to abide by a comprehensive environmental compliance plan.
Acting U.S. Attorney Rose is joined in making today’s announcement by Special Agent in Charge Maureen O’Mara of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Atlanta Area Office, and B. W. Collier, Acting Director of the North Carolina State Bureau of Investigation (SBI).
A criminal bill of information filed in U.S. District Court on November 11, 2013, charged Tap Root and Johnston, 62, of Mills River, N.C., with one count of violation of the Clean Water Act, in connection with the discharging of cow feces into the French Broad River. Johnston, the owner of Tap Root, is also a Board Member of the North Carolina Department of Agriculture and currently serves as a Council member for the Town of Mills River.
According to filed documents and statements made in court, Tap Root maintains several hundred cows and manages hundreds of acres of crop fields in Fletcher. In the annual course of its operations, Tap Root disposes millions of pounds of solid and liquid animal waste, which are considered pollutants under the Clean Water Act. Court documents indicate that beginning in 2009, Johnston let his certification lapse as Operator in Charge (OIC) of Tap Root’s animal waste management system. Despite receiving repeated warnings and notices, court records show that as of December 4, 2012, Tap Root still had not designated a valid OIC to oversee its waste management system. Furthermore, according to filed documents, from September 3, 2012 to December 4, 2012, for a total of 93 days, Johnston and the Tap Root employees had failed to check and maintain the levels of cow waste in their on-site waste containment lagoons. According to court records, this resulted in the spillover and discharge of 11,000 gallons of cow feces and other waste into the French Broad River on December 4, 2012. Testing by the North Carolina Department of Environment and Natural Resources concluded that the fecal coliform level where the waste stream meets the river was 99,000 parts per million, whereas anything above 800 parts per million is indicative of a release. Even downstream, testing found that the fecal coliform level was 2,200 parts per million.
“Agriculture is an important sector of Western North Carolina’s economy but it should not thrive at the expense of public health. Environmental protection laws are in place to ensure appropriate land use and safeguard our communities from potentially harmful pollutants,” said Acting U.S. Attorney Rose.
“As one of North Carolina’s largest dairies, Tap Root Dairy Farm has an obligation to protect the surrounding community from pollution,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in North Carolina. “Animal wastes are considered pollutants under the Clean Water Act because when discharged illegally, they can cause serious damage to the environment and put human health at risk. Today’s sentencing shows that those who violate our nation’s environmental laws will be held accountable for their crimes.”
The Clean Water Act is a federal law enacted to prevent, reduce and eliminate pollution, and to restore and maintain the chemical, physical, and biological quality, of the Nation’s waters for the protection and propagation of fish and aquatic life and wildlife, for recreational purposes, and for the use of such waters for public drinking water, agricultural, and industrial purposes. The French Broad River supplies drinking water to more than one million people and is frequently used for recreational water activities, such as swimming and kayaking. In 2012, North Carolina listed the French Broad River from Mud Creek to NC Highway 146 as “impaired” for fecal coliform bacteria. Tap Root is located on this impaired section of the French Broad River.
The investigation of this case was conducted by special agents of the EPA’s Criminal Investigation Division, and SBI’s Diversion and Environmental Crimes Unit. The prosecution is being handled by Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Chief of Los Angeles Port Police Named in Federal Corruption CaseRead the Press Release
Indictment Alleges that Chief Failed to Disclose Economic Interest in Smartphone App Being Developed for Use at Port and Failed to Report Taxable Income to IRS
LOS ANGELES – A federal grand jury today indicted the chief of police for the Port of Los Angeles on corruption and tax charges. The corruption charges in the indictment relate to a scheme in which the chief stood to financially benefit from the development of a social networking program that would become the official smartphone app for the Port and would then be marketed to other law enforcement agencies.
Ronald Jerome Boyd, 57, of Torrance, who in January was named as chief of public safety and emergency management at the port, was charged in a 16-count indictment returned by a grand jury. The indictment accuses Boyd of corruption, lying to FBI agents, failing to file federal corporate tax returns for a private security company he created, and tax evasion.
At the center of the case are four “honest services” wire fraud charges that accuse Boyd of executing “a scheme to defraud the citizens of the City of Los Angeles and the Harbor Department for the City of Los Angeles of their right to the honest services of defendant Boyd by means of bribery and kickbacks, materially false and fraudulent pretenses and representations, and the concealment of material facts.” The corruption scheme centers on a program called Portwatch, which was developed to provide information to the public and to allow citizens to report criminal activity at the port.
In 2011, Boyd and two business partners formed BDB Digital Communications, a company that entered into a revenue-sharing agreement with the unnamed company developing Portwatch. The parties involved with BDB intended to generate revenues by marketing and selling a similar app – called Metrowatch – to other government agencies. “Under the terms of this agreement, defendant Boyd would receive approximately 13.33 percent of all gross revenues generated by the sale of the Metrowatch application throughout the United States,” according to the indictment.
The revenue-sharing agreement was contingent upon Boyd’s assistance in securing the Portwatch contract for the unnamed company. Over the course of a year beginning in October 2011, Boyd took steps to benefit the unnamed company with respect to the Portwatch contract. The indictment alleges that his actions included hosting a private meeting with the unnamed company for the purpose of disclosing confidential information, meeting with Los Angeles officials that included the city attorney and the mayor, editing the scope of work for the Portwatch contract so that he could personally monitor the Portwatch app’s development, and urging the Port to expedite a press release to announce the implementation of the Portwatch app.
The indictment goes on to allege that Boyd, who was interviewed by special agents with the FBI last October, lied to the investigators when he denied having any financial interest in Metrowatch. The indictment alleges that Boyd falsely stated that BDB was created to sell body armor, and that he was unaware of the revenue-sharing agreement between the unnamed company and BDB. In relation to these alleged misrepresentations, Boyd faces three counts of making false statements.
Counts 8 through 16 of the indictment allege tax violations. Boyd is specifically charged with four counts of failing to file tax returns for the years 2008 through 2011 for his security business, At Close Range. He is also charged with five counts of tax evasion for the tax years 2007 through 2011 for failing to report income that was “substantially greater than the amount stated on the return,” according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If he is convicted of all 16 counts in the indictment, Boyd would face a statutory maximum sentence of 124 years in federal prison.
Boyd is expected to surrender to federal authorities next week on a date to be determined.
The case against Boyd is the product of an investigation by the Federal Bureau of Investigation and IRS – Criminal Investigation.
Release No. 15-039
Chester Man Indicted on Gun ChargeRead the Press Release
Kenneth Daniels, 38, of Chester, Pennsylvania was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of life imprisonment, a 15 year mandatory minimum term of imprisonment, 5 years supervised release, a $250,000 fine, and a $100 special assessment.
This case was investigated by the Federal Bureau of Investigation, the United States Marshals Task Force, and the Chester Police Department and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
Chattanooga Doctor and Nurse Practictioner Sentenced to Federal Prison in "Pill Mill" CaseRead the Press Release
CHATTANOOGA, Tenn. – On Apr. 30. 2015, Dr. Jerome Sherard, 60, of Chattanooga, Tenn., was sentenced to serve 60 months in federal prison and Charles Larmore 67, of Chattanooga, Tenn., was sentenced to serve 156 months in federal prison by the Honorable Curtis L. Collier, U.S. District Judge. Upon release from prison, each will be subject to three years of supervision by the U.S. Probation Office. Sherard was also ordered to forfeit $192,956.31 to the United States. Larmore was fined $20,000 and ordered to forfeit $375,829.20 to the United States.
Sherard and Larmore pleaded guilty to a federal indictment charging them with conspiring to distribute prescription drugs outside the scope of professional practice and not for a legitimate medical purpose. The conspiracies involved Superior One Medical Center (Superior Medical), Primary Care and Pain Clinic (Primary Care), and the Sherard Clinic. All three clinics were located in Chattanooga, Tenn. Both sentences reflected significant reductions based upon their cooperation and assistance in the prosecution of others involved in the clinics. Two other defendants in the case, Faith Blake and Barbara Lang, are awaiting sentencing.
As a result of their convictions, Sherard and Larmore no longer have the ability to write prescriptions for controlled substances. In imposing the prison sentences Judge Collier also noted the importance of deterring other medical providers from illegally prescribing drugs.
Facts presented at the sentencing hearing showed that controlled substances were prescribed to customers of these clinics even though many had histories of substance abuse; displayed physical signs or behaviors of drug abuse or over medication; admitted abusing drugs obtained from the clinic; failed drug tests; were caught abusing and/or distributing their prescribed medication; and/or admitted that they had diverted or sold controlled substances that had been prescribed to them in the past. Evidence showed that many of the individuals who frequented these clinics sold their drugs on the street to other addicts and drug abusers.
Records maintained by the Tennessee Controlled Substances Monitoring Database, showed that Larmore and Sherard were both in the top 12 of the more than 30,000 prescribers in the state. Larmore prescribed over two million pills, containing over 100 pounds of oxycodone, and Sherard wrote prescriptions for several hundred thousand pills, containing more than 45 pounds of oxycodone.
U.S. Attorney Bill Killian said, “Prescription drug abuse costs Tennessee almost what it spends on its highway budget each year, 1.4 billion dollars. This is a serious societal problem in Tennessee. Medical professionals must comply with federal law and we will vigorously prosecute those who do not.”
Law enforcement agencies participating in this joint investigation included the Drug Enforcement Administration, Internal Revenue Service, U.S. Trustee’s office, Tennessee Bureau of Investigation, Hamilton County Sheriff’s Office, Chattanooga Police Department, Roane County Sheriff’s Department, and Rockwood Police Department. Assistant U.S. Attorneys Gregg L. Sullivan and Michael D. Porter represented the United States at trial. Assistant U.S. Attorney Tracy Stone prosecuted other individuals involved in the drug conspiracies.
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Charleston man pleads guilty to federal meth chargeRead the Press Release
CHARLESTON, W.Va. – Daniel Lupson, 58, of Charleston, pleaded guilty today to possession of methamphetamine for distribution, United States Attorney Booth Goodwin announced. Lupson admitted to possessing methamphetamine that was found in his vehicle during a traffic stop by agents of the Metropolitan Drug Enforcement Network Team. Lupson said he intended to sell some of the methamphetamine and use some of it himself.
Lupson faces a maximum of 20 years’ imprisonment and a $1,000,000 fine when he is sentenced August 18, 2015.
United States District Judge John T. Copenhaver, Jr., conducted the plea hearing.
Centralia Man Pleads Guilty to Methamphetamine OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that James Perry Horton, 48, of Centralia, Illinois, pled guilty today to an 11-count indictment returned by a Federal Grand Jury in December 2014. Horton was named in Counts 1 and 11 of the indictment. All offenses relate to the production and distribution of methamphetamine. Specifically, Horton pled guilty to Conspiracy to Manufacture and Distribute Methamphetamine from February 28, 2014, through October 1, 2014 in Clinton and Marion Counties (Count 1), and Possession of a Listed Chemical (Pseudoephedrine) Knowing or Having Reason to Know that It Would Be Used to Manufacture Methamphetamine (Count 11).
Count 1 carries a maximum penalty of not less than 5 years, but up to 40 years in federal prison, a $5 million fine, and at least 4 years’ supervised release. Count 11 carries a maximum penalty of 20 years in prison, a $1 million fine, and not less than 3 years’ supervised release. Both counts require an assessment of $100. There is no parole in the federal system.
Information leading to the charges was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Bullhead Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Bullhead, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 27, 2015, by U.S. District Judge Charles B. Kornmann.
Steven Whiteman, Jr., age 44, was sentenced to 16 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Whiteman was indicted by a federal grand jury on July 15, 2014. He pled guilty on November 19, 2014.
The conviction stems from Whiteman failing to register as a sex offender between May 9, 2014, and May 25, 2014. Whiteman was previously convicted of a sex offense in federal court, which requires him by federal law to register as a sex offender for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Whiteman was immediately turned over to the custody of the U.S. Marshals Service.
Bossier city man sentenced to 120 months in prison for possessing methamphetamine with intent to sellRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City man was sentenced to 120 months in prison for possessing with intent to sell methamphetamine at his home.
John W. Davis II, 54, of Bossier City, La., was sentenced by U.S. District Judge Donald E. Walter on one count of possession with intent to distribute five grams or more of methamphetamine or 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. He was also sentenced to eight years of supervised release. According to evidence presented at the January 13, 2015, guilty plea, Davis’ home was searched on October 2, 2014 based on information that he was distributing methamphetamine. Agents found seven bags containing methamphetamine in a shaving kit on his porch and under his bed. After an analysis of the methamphetamine, a total of 480.7 grams of pure methamphetamine were determined to have been found at Davis’ home.
The DEA, Louisiana State Police, and Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Michael O’Mara prosecuted the case.
Alleged Members of Grant County Methamphetamine Trafficking Ring Arrested on Federal ChargesRead the Press Release
ALBUQUERQUE – Twelve individuals are facing methamphetamine trafficking charges as the result of a DEA-led investigation targeting a methamphetamine trafficking ring operating in Grant County, N.M. The 13-month investigation culminated this morning when all 12 defendants were arrested during an early morning law enforcement operation. The charges were announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Special Agent in Charge Waldemar Rodriguez of HSI’s El Paso Division, and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
The charges against the defendants are the result of an investigation that began in March 2014, and targeted a drug trafficking organization allegedly led by Daniel Lee Jacquez, 33, of Silver City, N.M., that distributed methamphetamine in Grant County, N.M. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
In announcing the charges, U.S. Attorney Damon P. Martinez said, “Today we embarked on a coordinated effort to crackdown on drug trafficking in Grant County and improve the quality of life for people who live there. Today’s arrests are part of our statewide fight against drug trafficking. The federal law enforcement community remains committed to safeguarding families throughout New Mexico.”
“In Silver City, New Mexico, DEA and its law enforcement partners made it abundantly clear that we will use all of our investigative tools and resources to keep our smaller communities safe from drug trafficking organizations that think they can go unnoticed operating in our smaller cities and towns,” said Will R. Glaspy, Special Agent in Charge of the El Paso Division of DEA. “Today’s enforcement operations mark the culmination of a 13-month investigation that will have an enormous impact on the availability of drugs in the Silver City area and help keep this community safe.”
“Grant County, like so many of New Mexico's historic, scenic areas, offers lots for residents and visitors to do, but drug trafficking should not be one of them,” said FBI Special Agent in Charge Carol K.O. Lee. “The FBI is proud to have worked with the U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, U.S. Marshals Service, and the New Mexico State Police in dismantling this drug-trafficking organization. Working with the U.S. Attorney’s Office and our federal, state and local law enforcement partners, the FBI will continue to fight the spread of harmful, illegal drugs in our communities.”
The twelve alleged members of the methamphetamine trafficking ring are charged in a 34-count indictment that alleges a drug trafficking conspiracy, a series of substantive drug trafficking offenses, and a firearms offense. Count 1 alleges that from March 2014 through April 2015, all 12 defendants conspired to distribute methamphetamine in Grant County. Eight counts charge certain defendants with distributing or possessing with intent to distribute methamphetamine, 24 counts charge certain defendants with using communications devices (telephone) to facilitate drug trafficking crimes, and one charges a defendant with being a felon in possession of a firearm. The 12 defendants will make their initial appearances in federal court tomorrow.
During today’s law enforcement operation, officers executed federal search warrants at seven residences and one business in Grant County. Together with evidence obtained during the course of the investigation, seizures to date include: approximately seven ounces of methamphetamine, several pounds of marijuana, approximately $17,000.00 in cash, 28 firearms, three vehicles and seven motorcycles.
The case was investigated by the Las Cruces offices of the DEA, HSI and FBI. The U.S. Marshals Service and the New Mexico State Police participated in today’s law enforcement operation. Assistant U.S. Attorney E. Garreth Winstead of the U.S. Attorney’s Las Cruces Branch Office is prosecuting this case.
Indictment in United States v. Jacquez, et al., 15-CR-1515-RB
Summary of the Charges
Count 1 of the Indictment charges all twelve defendants with conspiracy to distribute methamphetamine. The statutory maximum penalty for a conviction on this count for two of the defendants is imprisonment for up to 20 years and fine of up to $1,000,000.00; for two other defendants is imprisonment for not less than five years or more than 40 years and a $5,000,000.00 fine; and for the eight remaining defendants is imprisonment for not less than ten years or more than life, and a $10,000,000.00 fine.
Counts 2-4, 6, 33 and 34 charge certain defendants with distributing or possessing with intent to distribute methamphetamine. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than 20 years and a $1,000,000.00 fine.
Count 5 charges two defendants with distributing five grams and more of methamphetamine. The statutory maximum penalty for a conviction on this count is imprisonment for a mandatory minimum five years and a maximum of 40 years and a $5,000,000.00 fine.
Counts 7-12 and 15-32 charge certain defendants with using a communications device (telephone) to facilitate a drug trafficking crime. The statutory maximum penalty for a conviction on each of these counts is imprisonment for not more than four years and a $250,000.00 fine.
Count13 charges one defendant with possessing with intent to distribute 50 grams and more of methamphetamine. The statutory maximum penalty for a conviction on this count is imprisonment for a mandatory minimum ten years and a maximum of life and a $10,000,000.00 fine.
Count 14 charges one defendant with being a felon in possession of a firearm. The statutory maximum penalty for a conviction on this count is imprisonment for not more than ten years and a $250,000.00 fine.
Charges Against Defendants
Daniel Lee Jacquez, 33, Silver City, N.M., is charged in Counts 1, 8-11, 15-30, 32 and 33 of the indictment.
Toby Chapin Padilla, 43, Santa Clara, N.M., is charged in Counts 1, 6, 8-14 and 24 of the indictment.
Judah Grande Mondello, 30, Arenas Valley, N.M., is charged in Counts 1 through 7of the indictment.
Eric James Ruiz, 36, Arenas Valley, N.M., is charged in Counts 1 through 7 of the indictment.
Gilbert J. Moreno, 25, Silver City, N.M., is charged in Counts 1, 16, 19, 22 and 31 of the indictment.
Anthony R. Davila, 24, Silver City, N.M., is charged in Counts 1, 20 and 23 of the indictment.
Gary Lee Romero, Jr., 30, Santa Clara, N.M., is charged in Counts 1, 15, 18 and 30 of the indictment.
Crystal Medina Gomez, 49, Silver City, N.M., is charged in Counts 1, 27 and 33 of the indictment.
Kevin R. Carter, 53, Glenwood, N.M., is charged in Counts 1, 17, 21, 26, 32, and 34 of the indictment.
Lynette Medina, 41, Silver City, N.M., is charged in Counts 1 and 29 of the indictment.
Freddy J. Lucero, 46, Silver City, N.M., is charged in Counts 1, 6 and 9 of the indictment.
Bernice Holguin Miranda, 49, Silver City, N.M., is charged in Counts 1 and 24 of the indictment.
Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
indictment_15-cr-1515-rb.pdf
Albert Portusuch Mendiola, Jr. Sentenced to 46 Months PrisonRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that ALBERT PORTUSACH MENDIOLA, JR., age 32, of Tamuning, was sentenced on April 28, 2015, before Senior Judge Alex R. Munson, in the District Court of Guam, to 46 months imprisonment, three years supervised release and 50 hours community service.
Defendant pled guilty to Possession with Intent to Distribute Methamphetamine. MENDIOLA was arrested on December 5, 2012 with 9.7 grams of methamphetamine. He also had an electronic scale, several cut straws and plastic baggies in his possession.
This investigation involved federal agents of the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and officers from the Guam Police Department (GPD). The case was prosecuted by Assistant U.S. Attorney Clyde Lemons, Jr.