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10 June 2015
Santa Fe Man Pleads Guilty to Unlawfully Trafficking “Suboxone”Read the Press Release
ALBUQUERQUE – James Barela, 41, of Santa Fe, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to participating in a conspiracy to distribute Buprenorphine, more commonly known as “Suboxone,” in violation of the federal narcotics laws. Under the terms of his plea agreement, Barela will be sentenced to 12 months and one day in federal prison followed by at least two years of supervised release.
Barela was arrested on March 12, 2015, on an indictment charging him and co-defendant Edward Owens, 20, also of Santa Fe, with conspiracy and possession of Suboxone with intent to distribute. According to the indictment, Barela and Owens committed these crimes between Aug. 6, 2014 and Aug. 12, 2014, in Santa Fe County, N.M. During the period charged in the indictment, Owens was employed as a corrections officer at the Santa Fe County Adult Correctional Facility.
During today’s change of plea hearing, Barela pled guilty to Count 1 of the indictment, charging him with participating in a Suboxone trafficking conspiracy. In entering the guilty plea, Barela admitted that from Aug. 4, 2014 through Aug. 12, 2014, while he was incarcerated in a correctional facility in Santa Fe County, he conspired with Owens to distribute Suboxone to inmates in the correctional facility.
Barela remains in custody pending a sentencing hearing which has yet to be scheduled. At sentencing, Barela faces a statutory maximum sentence of five years imprisonment.
Owens has entered a plea of not guilty to the indictment. Charges in indictments are merely accusations, and defendants are presumed innocent unless proven guilty.
This case was investigated by the Albuquerque office of the FBI, the Santa Fe County Sheriff’s Office, and the Santa Fe Corrections Department. Assistant U.S. Attorney Shaheen P. Torgoley is prosecuting the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
San Francisco Man Sentenced to 15 Months for Importing and Selling Counterfeit DVDsRead the Press Release
SAN JOSE – Christopher Breejen was sentenced yesterday to 15 months in prison and ordered to pay $117,439.50 in restitution for criminal copyright infringement, announced United States Attorney Melinda Haag and Homeland Security Investigations Acting Special Agent in Charge, Tatum King.
Breejen, 43, of San Francisco, pleaded guilty on November 18, 2014, to one count of criminal copyright infringement, in violation of 17 U.S.C. § 506(a)(1)(A) and 18 U.S.C. § 2319(b)(1). According to the plea agreement, Breejen admitted to importing counterfeit DVD’s and then selling them on the eBay website. Between 2011 and August 2014, he sold approximately 20,000 counterfeit DVDs nationwide. Breejen was charged on September 26, 2014.
Prior to Breejen being charged, agents from the United States Customers and Border Protection (CBP) seized 16 separate shipments of counterfeit DVDs sent to Breejen from Asia. Breejen was notified about the counterfeit goods in each of these shipments by CBP. Despite these seizures and notifications, Breejen continued to import and sell counterfeit DVDs until agents from Homeland Security Investigations executed a search warrant at his residence in San Francisco, where they seized additional counterfeit DVDs.
The investigation began with a tip from the Motion Picture Association of America.
The sentence was handed down by the Honorable Beth L. Freeman, U.S. District Court Judge. Judge Freeman also sentenced the defendant to a three year period of supervised release. The defendant will begin serving the sentence on August 8, 2015.
Hanley Chew is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by Homeland Security Investigations.
Safe Streets Task Force Investigation Leads to Drug Charges Against Duquesne ManRead the Press Release
PITTSBURGH – A suburban Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of possession with intent to distribute and distribution of heroin, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on June 9 and unsealed today, named Brandon Gibson, 38, of Duquesne, PA.
According to the indictment, on four separate occasions during the months of August and September, 2013, Gibson distributed heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both, for each of the four counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Pittsburgh Bureau of Police, the Allegheny County Sheriff’s Office, and members of the Federal Bureau of Investigation Safe Street Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Providence Felon Sentenced to Federal Prison on Firearm Charge, Violating Supervised ReleaseRead the Press Release
PROVIDENCE, R.I. – Sarunn N. Phan, 28, of Providence, was sentenced today to 45 months in federal prison for being a felon in possession of a firearm and for violating the terms of federal supervised release on a previous conviction on a federal firearm charge, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U.S. District Court Judge Mary M. Lisi sentenced Phan to 30 months imprisonment to be followed by 3 years supervised release for being a felon in possession of a firearm; and a consecutive sentence of 15 months in prison for violating the terms of federal supervised release on a previous federal firearm conviction. In June 2009, Phan was sentenced to 24 months in federal prison to be followed by 3 years supervised release for being a felon in possession of a firearm.
Phan will begin serving his federal sentence after completing a two-year sentence that he is currently serving at the Rhode Island Department of Corrections for violating the terms of his state probation on a 2006 conviction for receiving stolen property over $1,500.
According to information presented to the court, late in the evening of April 9, 2014, Providence Police responded to shots fired in the vicinity of Oakland and Dickens Street. Responding officers found eleven .9mm shell casings on the ground and noticed a Jeep Grand Cherokee in the vicinity. About an hour later, officers observed the same vehicle at Douglas Avenue and Eaton Street. The officers affected a traffic stop after observing a traffic violation.
While pulling in behind the vehicle, officers observed an individual in a rear passenger seat toss a large black box into the rear cargo area. Upon arriving at the vehicle, the officers observed an open box with a firearm inside in the rear cargo area. Upon further inspection, officers discovered a .9mm handgun with an empty magazine. They also located a black plastic bag with ten .380mm rounds and a Glock 40 caliber magazine with 8 rounds of ammunition.
According to information presented to the court, Phan admitted to the police that the weapon was his, and he told officers, “It was self-defense.” Phan claimed to police that he had been shot at earlier in the evening.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Plainview Man Sentenced for Assault on A Federal OfficerRead the Press Release
United States Attorney Deborah R. Gilg announced today that Chief United States District Court Judge Laurie Smith Camp sentenced Matthew Moniz, Jr., age 27, of Plainview, Nebraska upon his conviction for assaulting a federal officer. Moniz was sentenced to 24 months imprisonment to be followed by three years of supervised release.
On April 5, 2014, Moniz, an enrolled member of the Omaha Tribe of Nebraska, was a passenger in a vehicle being driven on the Winnebago Indian Reservation when a Winnebago Police officer conducted a traffic stop of the vehicle. The officer identified Moniz and determined he had outstanding tribal and state arrest warrants. Moniz resisted arrest when the officer attempted to handcuff him and attempted to flee. When the officer caught Moniz, a struggle ensued and the officer sustained minor bodily injuries.
The Winnebago Officer is employed by the Bureau of Indian Affairs Office of Justice Services.
This case was investigated by the Bureau of Indian Affairs.
Pittsburgh Man Indicted on Heroin Possession ChargeRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of possession with the intent to distribute heroin, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on June 9 and unsealed today named Carloto Neal, Jr., 20.
The indictment charges that on or about March 17, 2015, in the Western District of Pennsylvania, Neal possessed with the intent to distribute a quantity of heroin, a Schedule I controlled substance.
The law provides for a maximum total sentence of 20 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and members of the Federal Bureau of Investigation Safe Street Task Force, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of New Jersey Hedge Fund Charged for Defrauding Investors of $4 MillionRead the Press Release
NEWARK, N.J. – The owner and manager of a New Jersey hedge fund was arrested today and charged with allegedly orchestrating an advance fee scheme that defrauded investors of $4 million, U.S. Attorney Paul J. Fishman announced.
Nicholas Lattanzio, 58, of Montclair, New Jersey, is charged by complaint with three counts of wire fraud and two counts of securities fraud. FBI agents arrested Lattanzio at a residence in West Orange, New Jersey, this morning. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the complaint unsealed today:
From June 2013 through November 2014, Lattanzio allegedly orchestrated a large-scale advance fee scheme through which he, his hedge fund, the Black Diamond Capital Appreciation Fund L.P. (BD Fund), and several other related entities collected millions of dollars in upfront fees from unsuspecting investors in exchange for the promise of future loans or investment opportunities that did not materialize. Instead of investing the victims’ money and providing the loans as promised, Lattanzio allegedly stole the majority of the funds and used them for personal expenses, including the purchase of a $1 million home, a luxury vehicle, expensive jewelry and the payment of thousands of dollars in credit card debt that he incurred for other personal expenses. The credit card expenditures included more than $24,000 for a family trip to Hawaii, more than $50,000 for tickets to the New York Yankees, and thousands of dollars in clothes, restaurants, jewelry and furniture. Lattanzio did not disclose this spending to his victims, but instead mislead them into believing that their investments were safe.
In June 2013, a company engaged in the business of oil and gas operations, production, development and acquisition (Company A) began seeking external funding to develop its existing assets and acquire new assets. Company A was introduced to an individual (Individual 1) affiliated with International Lending Services, an entity that purported to market financing opportunities, including those allegedly provided by the related Black Diamond entities. Company A was told that it had to deposit $2 million with the Black Diamond entities as a prerequisite for a $20 million lending facility through a third party lender.
Prior to any exchange of funds, Lattanzio and others acting at his direction made numerous misrepresentations to Company A to induce it to transfer the $2 million deposit to the Black Diamond entities, including telling the company that the financing was all but guaranteed, but that if it failed to close within 120 days, Company A’s $2 million could be returned; the $2 million deposit would be invested with the Black Diamond entities and would entitle Company A to a limited partnership interest in the BD Fund, a successful hedge fund managed by Lattanzio; and that Company A would be one of many investors in the BD Fund, which had a five-year track record of steady earnings.
Based on these misrepresentations, on Dec. 20, 2013, Company A caused $2 million to be wired to an account controlled by Lattanzio. The funds were not held as an escrowed deposit/investment in the BD Fund. Rather, Lattanzio allegedly converted the majority of the funds to his own use. He wired approximately $124,000 to the bank account of a Land Rover dealership for the purpose of purchasing a luxury car and spent $102,185 at a luxury jewelry store in Hackensack, New Jersey, to purchase a platinum and diamond ring that included a bezel set with three separate brilliant cut diamonds that each weighed over one carat. Over the next several months, Lattanzio continued to mislead Company A it into believing that its money was secure and that the financing was still imminent. Ultimately, when it became clear that the financing would not be provided, Company A requested the return of its $2 million per the terms of its agreement with Lattanzio. To date, however, Company A has not received any of its $2 million deposit or interest earned in connection with the deposit. Bank records confirm that Lattanzio converted the majority of Company A’s $2 million to his own benefit, including using the funds to pay private school tuition fees, golf club membership dues, credit card bills, and to purchase a luxury vehicle.
In 2014, a second company (Company B) was seeking financing to develop a hotel project in Georgia. Company B was introduced to Lattanzio and Individual A and presented with a financing package and structure similar to that presented to Company A, including a requirement that Company B deposit a substantial amount of money with the Black Diamond entities and representations that the deposit could be returned if the financing did not close. Company B wired $1.95 million to an account controlled by Lattanzio and the BD Fund as a deposit purportedly required to secure close to $10 million in financing by a third party. Lattanzio immediately converted the funds to his own use, including by purchasing a home in Montclair for more than $1 million.
Over subsequent months following Company B’s deposit, Lattanzio employed a number of delay tactics and made additional misrepresentations to Company B to conceal his actions with respect to its deposit funds. When it became apparent to Company B that there was no funding forthcoming, it demanded the return of its escrow deposit, which Lattanzio refused.
The wire and securities fraud counts with which Lattanzio is charged each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The complaint also seeks forfeiture of the home Lattanzio purchased in Montclair, New Jersey, a 2013 BMW 650 and various pieces of jewelry.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s arrest. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Andrew Calamari, and the N.J. Bureau of Securities, within the State Attorney General’s Division of Consumer Affairs, under the direction of Acting Attorney General John J. Hoffman.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit, and Assistant U.S. Attorney Peter Gaeta of the Office’s Asset Forfeiture and Money Laundering Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Out of State Resident Pleads Guilty to Firearms ChargesRead the Press Release
David Robert Sutton, 55, who has connections to Wisconsin and New Jersey, pled guilty today to charges of possessing, receiving, and importing unregistered machine guns, in violation of Title 26, United States Code, Sections 5861(d), (j), and (k).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Sentencing for Sutton is scheduled for August 18, 2015 before United States District Judge Robin L. Rosenberg in Fort Pierce. At sentencing, Sutton faces a maximum statutory sentence of ten years in prison on each of the three counts.
According to statements made in court and documents filed in the case, Sutton is a collector of firearms and is familiar with the requirements for registration and tax payment in order to lawfully possess certain types of firearms. This includes knowledge of automatic firearms, which are classified as machine guns and are therefore subject to the National Firearms Act, codified at Title 26 of the United States Code. The statute treats parts of firearms the same as fully assembled firearms. In September 2014, Sutton contacted a German friend by email and asked the individual to purchase him three lower receivers (the part of the firearm frame, with the trigger grip and magazine well, that houses the operating parts such as the bolt assembly) for Colt M16A1 automatic rifles which were advertised for sale in a website link. When the German asked if the purchase of the receivers was illegal, Sutton dismissed his concerns and the German proceeded to buy and ship the firearms to Sutton in the United States. Sutton directed the German to mislabel the package as “aluminum castings for use on boat,” falsely identify the United States of America as the country of origin, and address the delivery to the captain of a boat. The investigation revealed that Sutton was living on the addressee boat that was docked at a marina in Martin County, Florida. Sutton further advised his German contact “not to remember” to whom he sent the package, or otherwise respond to inquiries if law enforcement officers should ask about the firearms.
U.S. Customs and Border Protection Officer discovered the firearms upon inspection of the package when it arrived in the United States and transferred the package to HSI agents for investigation. A joint ATF and HSI investigation into the ownership of the addressee boat led agents to identify Sutton as the intended recipient of the package. When Sutton returned to the marina he contacted the management office to inquire about his package. An undercover ATF agent, acting as a marina employee, directed Sutton to the package. After Sutton took possession of the package and returned to his boat, he and a companion were stopped by HSI and ATF Special Agents and members of the Martin County Sheriff’s Office marine unit. Following consent by Sutton, the agents searched the boat and found the package containing the three lower receivers, that had been opened and reclosed by Sutton. Sutton admitted to ordering the firearms and acknowledged that they were not registered as required by federal law.
Mr. Ferrer commended the investigative efforts of ATF, HSI and the Martin County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
New Haven Man Sentenced to 4 Years in Federal Prison for Distributing Crack CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THOMAS CARR, also known as “Tommy Love,” 27, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 48 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine. CARR also was ordered to perform 100 hours of community service.
CARR is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.
According to court documents and statements made in court, the investigation revealed that James Bowman, also known as “Jimmy-Jam,” operated a large-scale cocaine and crack cocaine trafficking operation in the greater New Haven area. CARR ran Bowman’s drug-selling location in the Fair Haven section of New Haven.
CARR was arrested on May 17, 2012. On January 4, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”). CARR has been detained since April 17, 2014, when his bond was revoked.
Bowman pleaded guilty and awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
Montana U.S. Attorney's Office Receives National Award for Guardians ProjectRead the Press Release
WASHINGTON, D.C. – Department of Health and Human Services Inspector General Daniel R. Levinson recognized Montana’s U.S. Attorney, Mike Cotter, with the agency’s prestigious Inspector General's Award for Excellence for his efforts and the efforts of his office in combating corruption in federal grants and contracts with the Guardians Project. The Guardians Project involves a multi-agency strike force led by the agents of the Offices of Inspector General for Interior and Health and Human Services, the FBI and the IRS. Other law enforcement agencies that have contributed to the success of the Guardians Project include agents from the Offices for Inspector General from Education, Housing and Urban Development, Agriculture, Homeland Security, Justice, the Environmental Protection Agency and investigators from various tribal governments. U.S. Attorney Cotter received the award at the Cohen Federal Building in Washington, D.C. on Tuesday, June 9.
In accepting the award, U. S. Attorney Cotter was quick to acknowledge and applaud the hard work and talent of those attached to the Guardians Project. “All the honor belongs to the investigators and prosecutors who have trudged through the muck and mire of corrupt officials, greedy contractors, and opportunistic government employees,” he said. “Agents are on the road for weeks and away from their homes and families to root out corruption in Montana and to make the homes and families of our tribal communities better. They make the sacrifice and it is they that should receive the awards, the acknowledgement, and the gratitude for a job truly well done.”
"Our office is proud to present this award to the U.S. Attorney for this unique and successful partnership,” said Gerald Roy, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services, Kansas City Region. “The dedicated public servants of the Guardians Project have worked tirelessly to keep our federal programs solvent and bring those who steal from them to justice. I commend their diligent work.”
Agents working for the Inspectors General specialize in the investigation of fraud and corruption, and other forms of abuse of taxpayer monies, and possess specialized knowledge of federal programs. U.S. Attorney Mike Cotter supported the program, which was designed and launched by his Economic Crimes Unit attorneys in 2011, “as a way to do more than hold a particular defendant accountable, but also as a way to find errors in oversight and management of federal tax dollars that could lead to better government on the front end of the grants and contracts process.”
Since the Guardians Project began obtaining indictments from the federal grand jury in late 2012, thirty eight indictments and two informations have been filed charging 81 defendants and resulting in over 100 felony convictions for crimes including conspiracy, bribery, fraud, embezzlement, extortion, obstruction of justice, money laundering, blackmail, and tax evasion. The Guardians Project created a partnership that merged the expertise and oversight responsibilities of the various Inspectors General with the resources and traditional public corruption investigation responsibility of the Federal Bureau of Investigation and the Internal Revenue Service.
Notable Guardians prosecutions are the convictions of six defendants associated with the Po’Ka Program for disadvantaged youth on the Blackfeet reservation, the prosecution and conviction of Tony Belcourt, Chief Executive Officer of the Chippewa Cree Construction Corporation, and former tribal Chairmen John Chance Houle and Bruce Sunchild of the Rocky Boy’s reservation. Eight members of the Dale Old Horn family were convicted in 2012 and 2013 for their role in a scheme to defraud the Crow Tribe using positions with the Crow Tribe Historic Preservation Office. The former Chief Executive Officer of the Rocky Boy Health Clinic, Fawn Tadios, and former Clinic Finance Manager Theodora Morsette were convicted by juries in 2014 and 2015, respectively. Another Health Clinic CEO, Tim Rosette, has been indicted on an assortment of bribery and theft charges, and the most recent acting CEO, Darrin Miller, has been indicted for tax evasion. Agents of the Guardians Project uncovered a $300,000 embezzlement in the Blackfeet Tribe’s TANF Program, and secured welfare fraud convictions of two employees of the Fort Belknap Tribe’s public assistance office. Agents also secured the conviction at a jury trial earlier this year of John Lyon, the State Director of the Bureau of Land Management for the Eastern States Region for paying his Deputy Director for eight months—about $112,000—even though that deputy had left his BLM job in July 2012 and began working for the Chippewa Cree Tribe in Montana. That former Deputy Director, Larry Denny, was also convicted for taking a federal paycheck through March of 2013 when the scheme was discovered.
Missouri Resident Charged with Federal Lacey Act ViolationsRead the Press Release
St Louis, MO – CHARLES "SAM" JAMES, Columbia, Missouri, was charged in a one-count federal indictment for violations of the Lacey Act for engaging in conduct that involved the sale of white-tailed deer transported in violation of Missouri and Florida law.
According to the indictment, in October 2013, Charles “Sam” James, co-owner of Timber Hollow Whitetails, transported eleven live white-tailed deer in interstate commerce in violation of state and federal laws from Missouri to a white-tailed deer farm in Florida. The transportation of these animals took place after a Florida state law took effect banning the importation of captive white-tailed deer. The defendant allegedly transported the deer from Timber Hollow Whitetails near Mexico, Missouri, in a rented utility box trailer, to a deer farm near Laurel Hills, Florida.
Federal law makes it unlawful to transport live white-tailed deer out of the State of Missouri or into the State of Florida without proper documentation of the animals and without required animal health records. These health records include certifying that captive-bred animals are free from diseases like chronic wasting disease, tuberculosis and brucellosis.
Chronic wasting disease is the chief threat to wild deer and elk populations in North America. The disease, which ultimately ends in the death of infected animals, is a transmissible neurological disease that produces small lesions in the brain of deer and elk and is characterized by loss of body condition and behavioral abnormalities.
If convicted, this charge carries a maximum penalty of five years in prison, a $250,000 fine or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by agents from the U.S. Fish and Wildlife Service, the Missouri Department of Conservation and the Florida Fish and Wildlife Conservation Commission. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Missouri Man Pleads Guilty to Illinois Bank RobberyRead the Press Release
On June 9, 2015, Jonathon M. Ford, a thirty-eight year old Fenton, Missouri, man pled guilty in federal district court, in East St. Louis, to Bank Robbery, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Ford is scheduled for sentencing on September 29, 2015, at 10:30 a.m., at which time he faces a prison term of up to 20 years, a fine of up to $250,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100.
Court proceedings revealed that on March 19, 2015, Ford entered Regions Bank in Smithton, Illinois, wearing a dark-colored hooded zip up jacket and black face mask. Ford approached a bank teller, pointed a BB gun at the teller, and then stated, "I need all of your money." The teller immediately removed $3,872 in United States currency from the drawer and handed it to Ford, who then fled from the bank. Shortly thereafter, Ford was captured by law enforcement officials and all of the stolen money was recovered.
This case was investigated by the Federal Bureau of Investigation and is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Miami Dade College Student Sentenced to 5 Years in Prison for His Involvement in a Stolen Identity Tax Refund Fraud Scheme Involving Student Financial Services AccountsRead the Press Release
A Miami Dade College student was sentenced to 5 years in prison, followed by three years of supervised release, and was ordered to pay restitution of $63,419.30 for his involvement in a stolen identity tax refund fraud scheme involving student financial services accounts.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Ronald Dumond, Jr., a/k/a “Swaggabankz,” a/k/a “Carltin Swagga Banks,” a/k/a “Junior,” 23, of Miami, Florida previously pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, one count of theft of government money, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United State Code, Section 1028A(a)(1).
Court documents state that from August 8, 2011 to September 23, 2013, Dumond, Jr. participated in a tax fraud scheme with Bianca Noel, 22, of Miami, Florida, Mistie Faustin, 23, of Miami, Florida, and others where the defendants received fraudulently obtained tax refunds in their personal Higher One, Inc. (HOI) accounts. Higher One provided financial services to colleges and universities throughout the United States, including Miami Dade College in Florida.
Dumond, Jr. recruited Noel, Faustin, and other MDC students to participate in the tax fraud scheme by offering them a chance to make money if they would allow stolen tax refunds to be deposited into their HOI accounts. Noel, Faustin and other MDC students agreed and provided Dumond, Jr. with their HOI account numbers and log-in information.
Dumond, Jr. submitted to the U.S. Department of Treasury 35 fraudulent tax returns claiming $186,223 in tax refunds and directed these refunds to be deposited into Noel's HOI account; submitted 26 fraudulent tax returns claiming $73,735 in tax refunds and directed these refunds to be deposited into Faustin's HOI account; and submitted 8 fraudulent tax returns claiming $27,602 in tax refunds and directed these refunds to be deposited into Dumond, Jr.’s HOI account. From April 1, 2012 through May 30, 2012, Dumond, Jr.’s HOI account received $3,417.00 in proceeds from stolen tax refunds from other MDC students' HOI accounts. Dumond, Jr. paid Noel, Faustin and other MDC students for allowing their HOI accounts to receive stolen tax refunds.
During a search warrant of Dumond, Jr.'s residence, federal agents found 4,250 names and social security numbers of real people on electronic devices (computers, CDs, and hard drives) and loose leaf papers. Law enforcement found files on CDs which contained lists of the MDC students and their HOI account information such as Noel and Faustin who participated in the tax fraud scheme. These files also contained lists with the names and social security numbers of victims who had fraudulent tax returns filed using their names and social security numbers and the HOI accounts and other debit cards in which the stolen tax refunds were deposited. IRS-CI determined that the names and social security numbers found were used to file fraudulent tax returns for the tax years 2011, 2012, and 2013.
Co-defendant Noel was sentenced on June 1, 2015 to 30 days in prison, followed by three years of supervised release, and was ordered to pay restitution of $32,586. Noel previously pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and one count of theft of government money, in violation of Title 18, United States Code, Section 641.
Co-defendant Faustin was sentenced on April 14, 2015 to two years of probation and was ordered to pay $20,819 in restitution. Faustin previously pled guilty to theft of government property, in violation of Title 18, United States Code, Sections 641 and 2.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Maryland Man Pleads Guilty to Involuntary Manslaughter in Traffic Fatality in Washington, D.C.Read the Press Release
WASHINGTON – Momodui I. Bello, 36, of Fort Washington, Md., pled guilty today to involuntary manslaughter and driving under the influence of alcohol, stemming from a recent traffic fatality in Washington, D.C., Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Bello entered the plea in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for Sept. 4, 2015. The plea agreement, which is contingent upon the Court’s approval, calls for a sentence between three and five years in prison.
According to the government’s evidence, on Sunday, March 22, 2015, at about 3:15 a.m., Bello was driving a Volkswagen Passat on Eastern Avenue with the victim, Nancy Tinoza, in the front seat, and a rear seat passenger. The group was coming from Mango Café in Bladensburg, Md., where Bello drank several alcoholic beverages. While driving in the 3400 block of Eastern Avenue NE, in the District of Columbia, Bello failed to maintain his lane or to reduce his speed and crashed the Volkswagen into the rear of a tractor-trailer combination truck that was parked in the curbside lane of Eastern Avenue. The passenger side of Bello’s Volkswagen struck the back of the truck, went under the truck, and came to a rest when it slammed into the truck’s rear wheels. The crash killed Ms. Tinoza, 26.
The evidence indicated that, at the time of the crash, Bello was traveling at 45 mph in the 25 mph zone, and that he did not apply his brakes or take any action to avoid the collision. While at a hospital after the crash, Bello submitted a urine sample which indicated the presence of alcohol with a concentration of .24 percent. A concentration of .10 percent of alcohol in urine is considered to be driving under the influence in the District of Columbia.
In announcing the plea, Acting U.S. Attorney Cohen commended the work of those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit and the Fifth District. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Jim Brennan. Finally, he commended the efforts of Assistant U.S. Attorney Edward A. O’Connell, who is prosecuting the matter.
Marshall County woman convicted of stealing from local non-profitRead the Press Release
WHEELING, WEST VIRGINIA – Richelle D. Blair, 37, of Glen Dale, West Virginia, was convicted today of embezzling money from a local non-profit organization, United States Attorney William J. Ihlenfeld, II, announced.
Blair was formerly employed by Marshall County Starting Points Center, Inc., a non-profit social services organization in Marshall County, West Virginia. Starting Points receives federal grants from the United States Department of Health and Human Services. Blair repeatedly utilized the organization’s funds to purchase items for her own personal use.
Blair pled guilty today to a criminal Information charging her with one count of “Theft from an Organization Receiving Federal Funds.” She faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge James E. Seibert presided.
Marion man arrested and charged, suspected of distributing "blue drop" heroinRead the Press Release
A Marion man was arrested on federal heroin and firearms charges, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Eric L. Creagh, 32, was charged in U.S. District Court with one count of possession with intent to distribute heroin and one count of being a felon in possession of a firearm.
"We hope today's arrest puts a dent in the heroin epidemic we've seen in Marion," Dettelbach said. "Our office remains committed to working with law enforcement and others to stem the heroin and opioid problem we see in all corners of our state."
According to a federal affidavit filed in the case:
A confidential informant purchased more than 20 grams of "blue drop" heroin from Creagh on five separate occassions between May 30 and June 8.
Based on this and other information, members of the Drug Enforcement Administration, the Marion Metro Drug Enforcement Unit (MARMET), the Marion Police Department and the Marion County Sheriff's Office executed search warrants at two homes owned by Creagh on June 10. Creagh was arrested as law enforcement agents recovered two firearms, approximately one kilogram of a heroin/fentantyl mixture, blue fabric dye, a face mask with a filtration system and rubber gloves, two hydraulic presses and approximately $60,000 in cash.
It is believed the equipment was used to dye the heroin and prepare if for distribution, according to the affidavit.
Creagh appeared in U.S. District Court in Toledo and was ordered detained.
This case is being prosecuted by Assistant U.S. Attorneys Thomas Weldon and Michael Freeman following an investigation by the Drug Enforcement Administration, MARMET, the Marion Police Department, the Marion County Sheriff's Office and the Ohio Bureau of Criminal Investigation.
Manhattan U.S. Attorney and FBI Announce Charges Against Three Correction Officers in Beating Death of Inmate at Rikers IslandRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of criminal charges against three New York City Correction Officers in the death of Ronald Spear, a pre-trial detainee at Rikers Island. BRIAN COLL, then a correction officer on Rikers Island, was charged with repeatedly kicking Mr. Spear in the head while he was fully restrained and lying prone on the floor, in violation of his rights under the United States Constitution. The two other officers involved in the incident, BYRON TAYLOR and ANTHONY TORRES, are, together with COLL, charged with obstruction of justice related offenses for covering up COLL’s assault, which resulted in the death of Mr. Spear. COLL and TAYLOR were arrested this morning on charges contained in a Criminal Complaint and are expected to be presented in federal court later today. TORRES ultimately disclosed the attempted cover-up to federal investigators and pled guilty earlier this week to a Criminal Information charging obstruction of justice offenses, pursuant to a cooperation agreement with the Government.
Manhattan U.S. Attorney Preet Bharara said: “Today, we announce more sad news out of Rikers Island. Specifically, we unseal charges against three correction officers alleging a killing and a cover-up. Both relate to the untimely death of Ronald Spear, a Rikers Island inmate who died in the early morning hours of December 19, 2012, after receiving a brutal beating. As I have said before, Rikers inmates, although walled off from the rest of society, are not walled off from the protections of our Constitution.”
Assistant Director-in-Charge Diego Rodriguez said: “The vast majority of law enforcement officials serve their communities with honor and integrity. But when an officer’s conduct exceeds the permissible use of force and violates a person’s civil rights, the foundation of our democracy is threatened. Today, we hear the call of Spear and other victims whose constitutionally protected rights have been abused and violated. We remember their collective plea for justice. And we vow never to forget our obligation to remove from the criminal justice system those who do not uphold the tenets of the legal system.”
According to the Complaint[1] and Information unsealed today in Manhattan federal court:
Rikers Island is a jail complex, located in the Bronx, New York, maintained by the New York City Department of Correction. At the time of his death, Ronald Spear was a pretrial detainee incarcerated on Rikers Island in the North Infirmary Command, a facility housing detainees who have serious or chronic medical needs. Mr. Spear was suffering from end-stage renal disease, which required him to receive dialysis treatments. Mr. Spear wore a bracelet indicating that he was at “Risk of Fall” and typically walked with a cane.
The Assault
In the early morning hours of December 19, 2012, Mr. Spear left the housing area in the infirmary unit in an attempt to see the on-duty doctor. Mr. Spear was stopped outside the doctor’s office by COLL. When Mr. Spear was informed that the doctor was not available to see him at that time, an altercation ensued. COLL punched Mr. Spear several times in the face and stomach, and Mr. Spear was then restrained by two other correction officers, ANTHONY TORRES and BYRON TAYLOR. While Mr. Spear was lying prone on the ground and was still restrained, COLL repeatedly kicked Spear in the head, even after TORRES attempted to shield the inmate’s head with his hand and shouted to COLL to stop. After COLL stopped kicking Mr. Spear, COLL lifted Mr. Spear’s head up, told him in substance not to forget who had done this to him, and then dropped Spear’s head to the ground. Mr. Spear was pronounced dead at the scene shortly after the assault.
Spear’s autopsy was conducted at the Bronx Office of the Chief Medical Examiner. The autopsy revealed that Spear had three recent contusions on his head. At least two of those contusions were what the Medical Examiner described as “above the hat line,” and were thus inconsistent with being sustained as part of a fall. One of the contusions involved what the Medical Examiner described as a “brain bleed” caused by the blunt force of the impact. The Medical Examiner confirmed that the placement of Spear’s head injuries was consistent with Spear being kicked in the head while he was lying prone on the ground.
The Cover-Up
After Spear’s death, COLL, TAYLOR, TORRES, and others covered up the true cause of Mr. Spear’s death by concocting a false story that turned Mr. Spear into the aggressor. Specifically, COLL falsely claimed that Mr. Spear had attacked him with a cane, and TORRES and an additional correction officer referred to in the Complaint as CW-1 agreed to support this false version of events and not to tell investigators of evidence that COLL had repeatedly kicked Mr. Spear in the head. Additionally – at the request of TAYLOR – COLL, TORRES, and CW-1 agreed to falsely claim that TAYLOR was not present for the incident. Consistent with their agreement, the conspirators filed false use of force reports with the Department of Correction and lied repeatedly to Department of Correction investigators, to the Bronx District Attorney, and, in TAYLOR’s case, to a federal grand jury.
The conspirators propagated this false version of events after being repeatedly advised by a Rikers captain and by representatives of the correction officers’ union to be “consistent” in the use of force reports the officers were required to submit following Spear’s death. The first draft of a use of force report by CW-1 was rejected by a captain because it did not match the version of events contained in reports by COLL and TORRES, and CW-1 was required to submit a revised report that was “consistent.” Additionally, when no cane was recovered from the crime scene – potentially calling into doubt COLL’s claim that Mr. Spear had attacked him with a cane – a Rikers captain simply directed a correction officer to take a cane from the supply area and pass it off to investigators as the cane used in the incident.
In his guilty plea yesterday before the Honorable Chief Judge Loretta A. Preska to obstruction of justice offenses, TORRES admitted that he had conspired with others to cover up the facts surrounding the death of Mr. Spear. TORRES was not charged with violating the civil rights of Mr. Spear and at one point sought to shield Mr. Spear from the attack.
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BRIAN COLL, 45, of Smithtown, New York, is charged with one count of deprivation of rights under color of law, which carries a maximum penalty of 10 years in prison, one count of conspiracy to obstruct justice, which carries a maximum penalty of 20 years in prison, one count of obstruction of justice, which carries a maximum penalty of 20 years in prison, one count of filing false forms, which carries a maximum penalty of 20 years in prison, and one count of conspiracy to file false forms, which carries a maximum sentence of five years in prison.
BYRON TAYLOR, 31, of Brentwood, New York, is charged with one count of obstruction of justice by lying to a federal grand jury, which carries a maximum sentence of 20 years in prison, one count of conspiracy to obstruct justice, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to file false forms, which carries a maximum sentence of five years in prison.
ANTHONY TORRES, 49, of New Rochelle, New York, pled guilty to one count of conspiracy to obstruct justice and file false reports, which carries a maximum penalty of five years in prison, and one count of filing a false report, which carries a maximum sentence of 20 years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and the Criminal Investigators at the United States Attorney’s Office. Mr. Bharara also thanked the New York City Department of Correction, Investigative Division, and the Bronx District Attorney’s Office for their assistance in the investigation, which remains ongoing.
This case is being handled by the Office’s Civil Rights and Public Corruption Units. Assistant U.S. Attorneys Brooke E. Cucinella and Jeannette A. Vargas are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and COLL and TAYLOR are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegation.
Manchester Man Pleads Guilty to Conspiracy to Distribute Heroin and Conspiracy to Unlawfully Possess Cocaine with the Intent to DistributeRead the Press Release
CONCORD –Roberto Gracia, 41, of Manchester, pled guilty in United States District Court for the District of New Hampshire to conspiracy to distribute heroin and conspiracy to unlawfully possess cocaine with the intent to distribute, announced Acting United States Attorney Donald Feith.
Between May 5, 2014 and June 11, 2014, the FBI’s Safe Streets Gang Task Force, utilizing a cooperating source, made a series of six heroin purchases from the defendant or a co-conspirator at Gracia’s former residence located at 173 Belmont Street, Manchester. The total amount of heroin sold was in excess of 100 grams.
Gracia also pleaded guilty to conspiring to possess with the intent to distribute cocaine. During the investigation, Gracia conspired with another individual to purchase approximately ten kilograms of cocaine for $37,000 per kilogram from undercover FBI agents who posed as large scale cocaine traffickers from Miami, Florida. Gracia was arrested in Manchester on July 2, 2014 after he and his co-conspirator met with the undercover agents in a hotel parking lot in Manchester to take possession of the cocaine from the rear of an undercover FBI vehicle. Subsequently, approximately $115,000 in cash was located in a vehicle utilized by Gracia and his co-conspirator during the transaction.
A sentencing hearing has been scheduled for September 29, 2015. Gracia faces a mandatory minimum term of five years in prison on the heroin conspiracy and a maximum sentence of life in prison on the cocaine conspiracy.
The FBI’s New Hampshire Safe Streets Gangs Task Force is comprised of members of the FBI, Manchester Police Department, Hudson Police Department, Nashua Police Department, New Hampshire State Police, and the New Hampshire Department of Corrections Probation and Parole. Assistant United States Attorney Jennifer Cole Davis is prosecuting this case.
Luxury Car and Boat Seized from Former Head Pharmacist of New England Compounding CenterRead the Press Release
BOSTON – A 2011 BMW M3 automobile and a 2010 luxury boat owned by Barry J. Cadden, former shareholder and head pharmacist of New England Compounding Center (NECC), were seized by federal agents after warrants for the assets were issued by the U.S. District Court in Boston.
The vehicle was seized yesterday from outside Cadden’s residence in Wrentham, Mass., and the boat was seized in North Kingston, R.I. today after both were identified in the indictment against Cadden as forfeitable property.
In December 2014, Cadden was charged in a 131-count indictment related to the 2012 fungal meningitis outbreak caused by contaminated vials of preservative-free methylprednisolone acetate that NECC manufactured. Specifically, Cadden is charged with 25 acts of second-degree murder in Florida, Indiana, Maryland, Michigan, North Carolina, Tennessee, and Virginia, among other violations.
In addition, on May 22, 2015, the U.S. Attorney’s Office filed a civil forfeiture complaint against funds owned by Cadden and his wife, as well as those owned by Carla and Douglas A. Conigliaro. Carla Conigliaro, former shareholder of NECC, and her husband, Douglas Conigliaro, are also charged in the indictment with transferring millions of dollars the same month that NECC surrendered its pharmacy license and one month prior to NECC’s petition for bankruptcy in December 2012. The Conigliaros also allegedly transferred millions of dollars more after the bankruptcy court issued two orders prohibiting NECC shareholders from transferring any assets. The assets named in the civil forfeiture complaint, which exceed $18 million, were seized pursuant to seizure warrants issued in December 2014.
United States Attorney Carmen M. Ortiz; Jeffrey Ebersol, Acting Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; John Gibbons, U.S. Marshal of the U.S. Marshals Service, District of Massachusetts; and Jamie A. Hainsworth, U.S. Marshal of the U.S. Marshals Service, District of Rhode Island, made the announcement today. The forfeiture case is being prosecuted by Assistant U.S. Attorney Veronica M. Lei of Ortiz’s Asset Forfeiture Unit. The criminal investigation is being conducted by the Food and Drug Administration, Office of Criminal Investigations and the Federal Bureau of Investigation with assistance from the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; Department of Veterans Affairs, Office of Inspector General; and U.S. Postal Inspection Service. The criminal case is being prosecuted by Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Ortiz’s Health Care Fraud Unit, and Justice Department Trial Attorney John W.M. Claud of the Civil Division’s Consumer Protection Branch.
Lincoln Couple Sentenced in Connection with Wire Fraud SchemeRead the Press Release
United States Attorney Deborah R. Gilg announced that United States District Court Judge John M. Gerrard sentenced Scott Usher, age 46, and Robin Usher, age 53, both of Lincoln, Nebraska, in connection with a wire fraud scheme. Scott Usher was sentenced on June 9, 2015, to 84 months in prison and ordered to pay restitution in the amount of $519,230.02. Robin Usher was sentenced on June 10, 2015, to five years’ probation and ordered to pay restitution in the amount of $85,878.55. As conditions of her probation Robin Usher is required to submit to 8 months of home confinement with location monitoring and 12 consecutive weekends of confinement in a detention facility.
Scott and Robin Usher, husband and wife, were convicted in connection with a wire fraud scheme orchestrated by Scott Usher. Scott Usher was convicted of wire fraud as a result of his taking money from private lenders and investors purportedly for the purpose of developing new technologies which could be sold to large companies and governments. Among the numerous technologies Scott Usher represented he had developed were windmills that could operate with assistance from solar energy and designs that could inexpensively desalinate seawater. Scott Usher continually represented he had been in negotiations with companies and private individuals and that large transactions were about to close which would yield millions, even billions, of dollars in profit. He also represented he had been in personal conversations with prominent people ranging from the President and Vice-President of the United States to actor Matt Damon all of whom were supposedly interested in his inventions. All of Mr. Usher’s representations, in fact, were lies. He had not developed the technologies he said he had created, he had not been in negotiations with any companies or prominent individuals and there were no lucrative deals about to close. Scott Usher had simply made those representations to induce lenders and investors, primarily from the Lincoln area, to give him money which he used to support himself.
Robin Usher was convicted of being an accessory after the fact to wire fraud. The Ushers had travelled to Hawaii, using funds supplied by lenders and investors, purportedly for the purpose of meeting with representatives of the Chinese government. Scott Usher had previously represented that the Chinese government was close to consummating a deal with him to purchase the right to use his desalinization technologies. The deal was represented to be worth billions of dollars. Mr. Usher’s representations were entirely fabricated. Following the trip to Hawaii, Scott and Robin Usher attended dinner parties in Lincoln restaurants where Scott Usher told investors and lenders that his meetings with the Chinese had gone well. Robin Usher never contradicted Scott Usher or told the investors and lenders that no such meetings had taken place. Thereafter, an additional $85,878.55 in monies were provided by investors and lenders to Scott Usher. Robin Usher’s failure to disclose the truth about the trip to the Hawaii was, in part, responsible for those additional losses. Scott Usher was immediately remanded to the custody of the United States Marshal following sentencing.
This case was investigated by the Federal Bureau of Investigation and the Lincoln Police Department.
Latrobe Woman Facing Fraud ChargesRead the Press Release
PITTSBURGH - A resident of Latrobe, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of health care fraud and obtained controlled substances through fraud, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on June 9 and unsealed today, named Kari Richards, 28.
According to the indictment, Richards received health care benefits through Highmark and, in an attempt to obtain fraudulently various pain medications, caused Highmark to pay more than $600,000 in connection with claims in which she sought treatment over a 16-month period from more than 100 hospitals in eleven states on more than 300 occasions. Through this behavior, Richards obtained approximately 190 prescriptions for pain medications, including prescriptions for Schedule II controlled substances Oxycodone-Acetaminophen, Hydrocodone-Acetaminophen, Hydrocodone, and Oxycodone. As part of the scheme, Ms. Richards falsely represented the circumstances of injuries, which were mainly shoulder dislocations that she intentionally caused. She also misrepresented the medications that she received and her medical history.
The law provides for a maximum total sentence of 14 years of imprisonment, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment: Wichita Man Tried to Broker a Deal for Purchase of a Massage Parlor That Would Offer Sex ServicesRead the Press Release
KANSAS CITY, KAN. - A federal grand jury indictment filed Wednesday alleges a Wichita man tried to broker a deal for the purchase of a massager parlor that would offer sex services, U.S. Attorney Barry Grissom.
Kay Tee, 50, Wichita, Kan., is charged with one count of attempting to entice a person to travel across state lines to engage in prostitution, one count of using a telephone in furtherance of prostitution, two counts of wire fraud and one count of money laundering.
According to court records, Tee was arrested May 28 at the airport in Wichita when he drove there to pick up a person he believed was buying a Wichita massage parlor. In fact, the person Tee had talked with many times on the phone was one of two undercover informants working with federal investigators.
It is alleged Tee tried to collect fees from both undercover informants – one posing as a buyer and the other as a seller – in return for helping to arrange the sale. He also offered to provide additional services including filing city paperwork and doing taxes for the massage parlor. It is alleged Tee talked with the agents about the fact employees of the massage parlor would be performing sex services for customers.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000 on the money laundering charge, a maximum penalty of five years and a fine up to $250,000 on the phone charge, and a maximum penalty of 20 years and a fine up to $250,000 on each of the three other counts. The Wichita Police Department and Homeland Security Investigations investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Houma Man Pleads Guilty to Participating in Fresno-Based Methamphetamine Distribution RingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MANUEL OMAR MINJAREZ, age 27, of Houma, pled guilty today to charges of conspiracy to distribute methamphetamine and having methamphetamine mailed to him from a Fresno, California.
According to court documents, this case arose out of an investigation into methamphetamine trafficking that was being conducted by agents of the Drug Enforcement Administration (DEA) and the United States Postal Inspection Service (USPIS) in Fresno during the summer of 2014. In July 2014, agents learned that members of a Fresno-based methamphetamine trafficking organization were mailing methamphetamine to a drug dealer in Houma. DEA agents and Postal Inspectors in Fresno coordinated with their counterparts in the New Orleans offices for the DEA and the USPIS to further investigate the Houma-based arm of this drug conspiracy. On July 18, 2014, postal Inspectors in Houma subsequently intercepted a package containing almost one pound of methamphetamine. With the assistance of the Louisiana State Police and the Terrebonne Narcotics Task Force, DEA agents and US Postal Inspectors determined that MINJAREZ was the intended recipient of the package.
As the investigation continued, DEA agents learned in July 2014, that MINJAREZ requested more methamphetamine to be mailed from the Fresno cell of this drug trafficking conspiracy. USPS Postal Inspectors also determined that on July 10, 2014, MINJAREZ had received another package of methamphetamine that weighed approximately one pound and eleven ounces. On July 30, 2014, MINJAREZ was arrested by a Texas Department of Public Safety Trooper in Sutton County, Texas. Through the assistance of Texas state authorities, MINJAREZ was removed to federal custody to face the federal indictment in New Orleans to which he pleaded guilty today.
MINJAREZ pleaded guilty as charged to all three counts of the indictment. As to Count 1, conspiracy to distribute and to possess with the intent to distribute 500 grams or more of methamphetamine, MINJAREZ faces a minimum of 10 years in prison and a maximum of life imprisonment, a $10,000,00 fine, and at least five years of supervised release. Count 2 and Count 3 charged MINJAREZ with the use of a phone and the mail in furtherance of a drug trafficking conspiracy. As to Counts 2 and 3, MINJAREZ faces a maximum of four years of imprisonment, a $250,000 fine, and up to one year of supervised release. U.S. District Judge Ivan L.R. Lemelle set sentencing for September 23, 2015.
U.S. Attorney Polite praised the coordinated investigation between the Fresno offices for the DEA and USPIS, the DEA New Orleans Office, the USPIS New Orleans Office, the Louisiana State Police, and the Terrebonne Narcotics Task Force in investigating this matter. U.S. Attorney Polite extended his thanks to the U.S. Attorney’s Office for the Eastern District of California, theTexas Department of Public Safety, the Sutton County, Texas, Sheriff’s Office, the District Attorney’s Office for the Texas 112th Judicial District, and the DEA Office in Del Rio, Texas, for their assistance in prosecuting this case. Assistant United States Attorneys Matthew R. Payne and Theodore R. Carter, III, are in charge of the prosecution.
Manuel Omar Minjarez Factual Basis (1.77 MB)
Honduran Man Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EDIN ANTONIO PLEITES-ZAMORA, age 24, a citizen of Honduras pled guilty today to a one-count Indictment charging him with illegal reentry of a removed alien.
According to the Indictment, PLEITES-ZAMORA reentered the United States on or about November 4, 2014, after having been previously removed on May 25, 2012.
PLEITES-ZAMORA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for July 15, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, United States Border Patrol in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Edin Antonio Pleites-Zamora Factual Basis (1.24 MB)
Harrisburg Man Indicted on Heroin Trafficking ChargesRead the Press Release
HARRISBURG - A Harrisburg man has been indicted by a federal grand jury in Harrisburg on multiple charges involving the unlawful distribution of heroin.
United States Attorney Peter Smith announced that Joshua Ingram, 20, of Harrisburg, was charged in a five count indictment with unlawfully distributing heroin on three specific occasions, possessing heroin with the intent to distribute on another occasion, and with conspiring with persons known and unknown to the grand jury to distribute heroin since at least January 2014.
The case was investigated by the Harrisburg Resident Office of the Drug Enforcement Administration, the Harrisburg Police Department, Dauphin County Drug Task Force and the Dauphin County Probation Office. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments 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 on each count, 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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Harrisburg Man Federally Indicted for Selling HeroinRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Armani V. Carson, age 21, of Harrisburg, Pennsylvania was indicted by a federal grand jury in Harrisburg, Pennsylvania. The indictment charges Carson with possessing a firearm by a convicted felon, possessing a firearm in furtherance of drug trafficking, and distribution and possession with intent to distribute a controlled substance.
According to United States Attorney Peter Smith, the charges against Carson are a result of allegations that Carson sold heroin on the streets of Harrisburg, PA in December 2014 and January 2015. The Pennsylvania State Police seized a stolen firearm and additional heroin from Carson’s home in the 1900 block of Bellevue Road on January 6, 2015.
This case is being investigated by the Drug Enforcement Administration and the Pennsylvania State Police. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
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 a lifetime 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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Greene County Man Pleads Guilty to Conspiracy to Avoid Paying $585,000 in Federal TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Greene County, Mo., man has pleaded guilty in federal court to his role in assisting co-conspirators to avoid paying $585,000 they owed in federal taxes.
Alton Louis Vaughn, Sr., 58, of Greene County, pleaded guilty before U.S. District Judge M. Douglas Harpool on Tuesday, June 9, 2015, to participating in a conspiracy from February 2009 to Sept. 30, 2014, to defraud the United States by impeding the lawful government functions of the Internal Revenue Service in the ascertainment, computation, assessment, and collection of federal taxes.
Vaughn, who is self-employed, derived a portion of his income from assisting in the preparation of federal income tax returns, advising taxpayers regarding their dealings with the IRS, and representing others in their dealings with the IRS.
Vaughn admitted that he assisted a co-conspirator in an attempt to avoid paying taxes on approximately $4.7 million in business receipts. Vaughn advised and assisted the co-conspirator’s attempts to avoid IRS efforts to ascertain, compute, assess, and collect federal income taxes, and sometimes acted as his representative in dealings with the IRS.
Vaughn admitted that he attempted to impede a federal criminal investigation by falsely reporting to the Treasury Inspector General for Tax Administration that an IRS revenue officer and an IRS criminal investigator had coerced, intimidated and threatened this co-conspirator. Vaughn also attempted to impede a federal grand jury in its investigation by refusing to comply with federal grand jury subpoenas for tax and business records and by sending correspondence to the U.S. Attorney’s Office falsely stating that an IRS revenue officer had personally seized and collected documents. Vaughn admitted that he falsely testified before the grand jury that an IRS revenue officer had seized those records.
Vaughn further attempted to impede a federal grand jury in its investigation by counseling another person to refuse to testify before the grand jury, and by providing her with a written statement (which contained an inaccurate statement of the law) to read to the grand jury in lieu of complying with her legal obligation to testify.
Vaughn also admitted that he assisted another couple to impede IRS efforts to collect the taxes the couple owed. They refused to comply with IRS requests and summonses for documents and records. Instead, they presented an explanation they knew to be false when they claimed their documents and records had already been provided to an IRS revenue officer. Vaughn told them that, because this IRS revenue officer had died, there was no way the IRS could prove the statement was untrue. This client also testified in a summons enforcement hearing in federal court and falsely stated that he had provided all of the personal tax records to the IRS revenue officer.
Additionally, while not admitting the allegations, Vaughn acknowledges the government could prove that he engaged in a scheme to defraud another taxpayer, who was his client. Under the terms of the plea agreement, the government will not separately charge Vaughn for this conduct, and Vaughn must pay the client $3,595 in restitution, which is the amount Vaughn received from the client as compensation for his services.
Under the terms of the plea agreement, Vaughn must pay the government approximately $585,710 in restitution, which is the amount of taxes he attempted to aid his co-conspirators to avoid.
Under federal statutes, Vaughn is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration.
Former Youth Minister Pleads Guilty to Child Enticement OffenseRead the Press Release
DALLAS — A former youth minister in Garland, Texas, pleaded guilty yesterday to a federal child enticement offense, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Derek Hutter, 37, appeared before U.S. Magistrate Judge David L. Horan and pleaded guilty to a superseding information charging one count of enticement of a minor. He faces a statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine. Hutter has been in custody since his arrest in December 2014. A sentencing date was not set.
According to plea documents filed in the case, Hutter worked as a youth minister at the South Garland Baptist Church. He used the Internet, his cell phone and email, as well as person-to-person contact at youth group, to communicate with Jane Doe, a minor girl in his youth group. During these conversations, he convinced Jane Doe to have a sexual relationship with him. Hutter sexually assaulted Jane Doe on several occasions between January 1, 2014, through approximately September 15, 2014.
In addition, according to the filed factual resume, Hutter emailed Jane Doe and asked that she send him explicit and lewd photos of herself.
Hutter admitted that he knew Jane Doe was between age 13 and 14.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Sachse Police Department, the Garland Police Department and the FBI investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Former Owner of Madison Wholesale Distributor Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
Scott Lumley, 47, of Hendersonville, Tennessee, pleaded guilty yesterday to wire fraud and money laundering, announced David Rivera, United States Attorney for the Middle District of Tennessee. Lumley was the owner of Bluebuyyou, a wholesale distributor company based in Madison, Tennessee.
During a hearing before U.S. District Court Chief Judge Kevin H. Sharp, Lumley admitted making misrepresentations to a customer to which Bluebuyyou had sold a large quantity of Red Bull energy drink for $176,000. Lumley acknowledged that he falsely told the customer that Red Bull had been shipped to an agreed-upon location in Texas and that he provided forged bills of lading. Bluebuyyou, in fact, had not shipped any Red Bull to the customer and did not possess a sufficient quantity of the product to satisfy the sale. Lumley also admitted that a Bluebuyyou employee pretended to be a trucking dispatcher involved in the shipment of Red Bull and falsely reported to the customer that Red Bull had been shipped to Texas.
Lumley faces up to 20 years in prison in connection with his wire fraud conviction and up to 10 years in prison in connection with his money laundering conviction. He will be sentenced by Judge Sharp on September 18, 2015. Lumley has agreed to pay full restitution to the defrauded customer.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service- Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Former Deputy Sheriff Sentenced to 13 Years for Mail Fraud and Using Fire to Commit a Federal FelonyRead the Press Release
A former deputy sheriff and volunteer firefighter who submitted a fraudulent insurance claim after deliberately setting fire to his vacant home was sentenced today to 13 years in federal prison.
James Marvin Plower, age 50, from Olin, Iowa, received the prison term after a February 20, 2015, guilty plea to one count of mail fraud and one count of using fire to commit a federal felony.
At his guilty plea hearing, Plower admitted that, between about July 2013 and August 2014, he made up a scheme to defraud his insurance company. Plower admitted that, as part of the scheme, he deliberately set fire to his vacant home in Martelle, Iowa, and then submitted an insurance claim in which he falsely claimed the fire was accidental.
Plower was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Plower was sentenced to 13 years’ imprisonment to be followed by 3 years’ supervised release. He was ordered to make $152,874.58 in restitution to the victim insurance company. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Iowa Division of Criminal Investigation, the United States Postal Inspection Service, the Iowa State Fire Marshal Division, and the Jones County Sheriff’s Department.
Plower was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-12-LRR.
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Federal Grand Jury Indicts Andrew Steven Romero for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – A federal grand jury has returned an indictment charging Andrew Steven Romero, 28, of Albuquerque, N.M., with violating the federal firearms laws by unlawfully possessing a firearm and ammunition. The indictment was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Romero initially was charged with violating the federal firearms laws in a criminal complaint filed on May 29, 2015. The complaint alleged that Romero unlawfully possessed a firearm and ammunition on May 25 and May 26, 2015, in Bernalillo County, N.M. At the time, Romero was prohibited from possessing either firearms or ammunition because he previously has been convicted of multiple felony offenses, including voluntary manslaughter, tampering with evidence, aggravated assault with a deadly weapon, contributing to the delinquency of a minor, possession of a destructive device by a felon, heroin trafficking, and receiving or transferring a motor vehicle.
The single count indictment filed by the federal grand jury on June 9, 2015, charges Romero with being a felon in possession of a firearm on May 25, 2015, in Bernalillo County.
Romero was arrested on May 26, 2015, on related State charges and currently is in State custody. He will be transferred to federal custody to answer to the federal indictment.
If convicted of the charge in the criminal complaint, Romero faces up to ten years in federal prison. If the court determines that Romero is an armed career criminal, he faces an enhanced sentence of a mandatory minimum of 15 years in prison to a maximum of life imprisonment.
Charges in criminal complaints and indictments are merely accusations. Defendants are presumed innocent unless found guilty in a court of law.
Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the federal case, which was investigated by a multi-jurisdictional team that includes the Albuquerque offices of the FBI and ATF and the Multi-Agency Officer Involved Shooting Task Force, which is comprised of officers from the Albuquerque Police Department, the Bernalillo County Sheriff’s Office, the New Mexico State Police and the Rio Rancho Police Department. The 13th Judicial District Attorney’s Office assisted in the investigation of the federal case.
Romero is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Farmville Man Sentenced for Drugs and Firearm ChargesRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced JOHNNY TYRONE HOPKINS, 44,of Farmville, North Carolina, to 60 months in prison and 5 years of supervised released for conspiracy to distribute and possession with the intent to distribute 500 grams or more of cocaine, 28 grams or more of cocaine base (crack), and a quantity of marijuana, and to 60 months in prison and 5 years of supervised release for possession of a firearm in furtherance of a drug trafficking crime. The 60 month sentence for the firearm charge will run consecutively to the 60 month sentence for the drug conspiracy producing a total term of 120 months. HOPKINS previously pled guilty to these charges on October 21, 2014.
The investigation revealed that between March 2010 and April 2014, HOPKINS conspired with others to distribute approximately 1 kilogram of cocaine, 135 grams of cocaine base (crack), 5 kilograms of marijuana and 52 grams of oxycodone. The investigation also revealed that HOPKINS sold firearms and possessed numerous firearms in connection with his drug trafficking.
The investigation of this case was conducted by the Farmville Police Department, the Pitt County Sheriff’s Office, the Greenville Police Department and the Drug Enforcement Administration. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Employee of Yonkers Dollar Store Sentenced in White Plains Federal Court to Two Years in Prison for Million-Dollar Food Stamp FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that KHALIL MOUGHAWECH was sentenced yesterday in White Plains federal court to a term of 24 months in prison and ordered to pay $1 million in restitution and $1 million in forfeiture for committing food stamp fraud from September 2010 to August 2013 at the Peso Value Plus store in Yonkers, New York. MOUGHAWECH was found guilty at a jury trial in February 2015. United States District Judge Vincent L. Briccetti imposed the sentence yesterday.
According to the Superseding Indictment and the evidence presented at trial:
MOUGHAWECH was the manager of the Peso Value Plus store between 2010 and August 2013, and often operated the store’s cash register. Peso Value Plus participated in the Supplemental Nutrition Assistance Program (“SNAP”), also known as the Food Stamp Program, where food stamp recipients could redeem their SNAP benefits using an electronic benefits transfer card to purchase eligible food items. Between approximately September 2010 and August 2013, MOUGHAWECH conspired with others to exchange SNAP benefits for cash illegally. The fraud resulted in a loss of $1 million to the SNAP Program.
* * *
In addition to the prison sentence, MOUGHAWECH, 42, of the Bronx, New York, was ordered to pay $1,000,000 in restitution to the United States Department of Agriculture and to forfeit $1,000,000.
Mr. Bharara praised the outstanding investigative work of the Department of Agriculture’s Office of Inspector General and the Yonkers Police Department.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorneys Daniel Filor and Benjamin Allee are in charge of the prosecution.
Eddy County Man Pleads Guilty to Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Ernesto Flores, 43, of Hagerman, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating federal drug trafficking laws.
Flores was arrested on March 12, 2015, on a criminal complaint charging him with possession of methamphetamine with intent to distribute on Feb. 4, 2015, in Eddy County, N.M. According to the criminal complaint, on that day, the Pecos Valley Drug Task Force, the Chaves County Metro Narcotics Task Force and the Eddy County Sheriff’s Office executed a search warrant on a storage room and garage belonging to Flores. The officers seized an AK-47, two handguns, a stolen handgun, $4,900.00 in cash, drug paraphernalia and approximately 296.52 grams of methamphetamine.
During today’s proceedings, Flores pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. Flores admitted that he possessed approximately 296.52 grams of methamphetamine on Feb. 4, 2015.
At sentencing, Flores faces a statutory minimum of five years and a maximum of 40 years in federal prison followed by not less than four years of supervised release. Flores remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA, the Pecos Valley Drug Task Force, the Chaves County Metro Narcotics Task Force and the Eddy County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Deputy Sheriff Convicted for Withholding Evidence Favorable to a DefendantRead the Press Release
Three Deputies Also Convicted of Obstructing Justice by Covering Up a Fellow Officer’s Use of Force
A federal jury in Albany, Georgia, today convicted three sheriff’s deputies on various federal offenses related to the cover-up of a 2012 incident in which a fourth deputy used force during the arrest of a civilian. The charges against Decatur County Captain Elizabeth Croley, Decatur County Deputy Christopher Kines and Decatur County Deputy Robert Wade Umbach related to a September 2012 incident in which former Grady County Deputy Sheriff Wiley Griffin, IV—who is the son of Decatur County Sheriff Wiley Griffin, III— used force against Aaron Parrish during an arrest at the Bainbridge BikeFest. The jury found that Croley, Kines and Umbach obstructed justice when they later helped cover up defendant Griffin’s actions. Specifically, the jury convicted Croley of obstructing justice by writing a false report and convicted Kines and Umbach of engaging in misleading conduct by lying to an FBI agent about the incident. Croley was also convicted of violating Aaron Parrish’s constitutionally protected right to a fair trial by intentionally withholding material exculpatory evidence from the District Attorney’s Office, and, in turn from Aaron Parrish’s criminal defense attorney, during a criminal prosecution of Parrish arising out of the same BikeFest incident.
Croley, Kines and Umbach will be sentenced by the Honorable W. Louis Sands, Senior U.S.District Court Judge for the Middle District of Georgia, at a later date to be set by the court.
The same jury that convicted the three Decatur County officers of obstruction acquitted Griffin on a civil rights count charging him with having used excessive force against Parrish and acquitted Kines and Umbach of obstructing justice by writing false reports.
During a trial that lasted more than two weeks, the jury heard evidence that Griffin struck Parrish in the eye with a metal flashlight while Parrish was being restrained on the ground by other deputies, including Kines and Umbach. The government presented evidence that Captain Croley and Deputies Kines and Umbach then helped cover up the incident by, among other things, Croley writing a false report and Kines and Umbach misleading the FBI by stating that they did not see Griffin at the scene.
The government also presented evidence that, after Parrish complained to the Decatur County Sheriff’s Office about the abuse he had suffered at BikeFest, the Sheriff’s Office opened a criminal investigation led by Croley that eventually resulted in felony criminal charges against Parrish. During that investigation, Croley took a witness statement from a civilian eyewitness who provided information that would have been materially helpful to Parrish’s defense. However, rather than providing that statement to the District Attorney so that it could then be provided to Parrish’s defense attorney for use at trial, Croley intentionally removed the exculpatory statement from the case file. This conduct formed the basis of the civil rights charge on which defendant Croley was convicted.
At sentencing, Croley will face a maximum sentence of 20 years for her false report and one year for the civil rights violation involving hiding exculpatory evidence. Kines and Umbach face maximum sentences of 20 years for making misleading statements to the FBI.
“As the jury recognized through its verdict, there are serious consequences when law enforcement officers lie to cover up the misconduct of a fellow officer and when an officer intentionally stacks the deck against an accused person by hiding evidence that could show the person’s innocence,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “When officers engage in this type of outrageous behavior, the Department of Justice stands ready to enforce the law and protect the civil rights of all Americans.”
“This case reflects that the rule of law applies to all and that the FBI will present for prosecution the facts as it finds them,” said Special Agent in Charge J. Britt Johnson of the FBI Atlanta Field Office. “Today's verdicts conclude an extensive investigation and prosecution that needed to be heard and the FBI is satisfied that it was."
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Trial Attorneys Christine M. Siscaretti and Risa Berkower of the Justice Department’s Civil Rights Division, with support from the U.S. Attorney’s Office for the Middle District of Georgia.
Deputy Sheriff Convicted for Withholding Evidence Favorable to A DefendantRead the Press Release
WASHINGTON – A federal jury in Albany, Georgia, today convicted three sheriff’s deputies on various federal offenses related to the cover-up of a 2012 incident in which a fourth deputy used force during the arrest of a civilian. The charges against Decatur County Captain Elizabeth Croley, Decatur County Deputy Christopher Kines and Decatur County Deputy Robert Wade Umbach related to a September 2012 incident in which former Grady County Deputy Sheriff Wiley Griffin, IV—who is the son of Decatur County Sheriff Wiley Griffin, III— used force against Aaron Parrish during an arrest at the Bainbridge BikeFest. The jury found that Croley, Kines and Umbach obstructed justice when they later helped cover up defendant Griffin’s actions. Specifically, the jury convicted Croley of obstructing justice by writing a false report and convicted Kines and Umbach of engaging in misleading conduct by lying to an FBI agent about the incident. Croley was also convicted of violating Aaron Parrish’s constitutionally protected right to a fair trial by intentionally withholding material exculpatory evidence from the District Attorney’s Office, and, in turn from Aaron Parrish’s criminal defense attorney, during a criminal prosecution of Parrish arising out of the same BikeFest incident.
Croley, Kines and Umbach will be sentenced by the Honorable W. Louis Sands, Senior U.S.District Court Judge for the Middle District of Georgia, at a later date to be set by the court.
The same jury that convicted the three Decatur County officers of obstruction acquitted Griffin on a civil rights count charging him with having used excessive force against Parrish and acquitted Kines and Umbach of obstructing justice by writing false reports.
During a trial that lasted more than two weeks, the jury heard evidence that Griffin struck Parrish in the eye with a metal flashlight while Parrish was being restrained on the ground by other deputies, including Kines and Umbach. The government presented evidence that Captain Croley and Deputies Kines and Umbach then helped cover up the incident by, among other things, Croley writing a false report and Kines and Umbach misleading the FBI by stating that they did not see Griffin at the scene.
The government also presented evidence that, after Parrish complained to the Decatur County Sheriff’s Office about the abuse he had suffered at BikeFest, the Sheriff’s Office opened a criminal investigation led by Croley that eventually resulted in felony criminal charges against Parrish. During that investigation, Croley took a witness statement from a civilian eyewitness who provided information that would have been materially helpful to Parrish’s defense. However, rather than providing that statement to the District Attorney so that it could then be provided to Parrish’s defense attorney for use at trial, Croley intentionally removed the exculpatory statement from the case file. This conduct formed the basis of the civil rights charge on which defendant Croley was convicted.
At sentencing, Croley will face a maximum sentence of 20 years for her false report and one year for the civil rights violation involving hiding exculpatory evidence. Kines and Umbach face maximum sentences of 20 years for making misleading statements to the FBI.
“As the jury recognized through its verdict, there are serious consequences when law enforcement officers lie to cover up the misconduct of a fellow officer and when an officer intentionally stacks the deck against an accused person by hiding evidence that could show the person’s innocence,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “When officers engage in this type of outrageous behavior, the Department of Justice stands ready to enforce the law and protect the civil rights of all Americans.”
“This case reflects that the rule of law applies to all and that the FBI will present for prosecution the facts as it finds them,” said Special Agent in Charge J. Britt Johnson of the FBI Atlanta Field Office. “Today's verdicts conclude an extensive investigation and prosecution that needed to be heard and the FBI is satisfied that it was."
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Trial Attorneys Christine M. Siscaretti and Risa Berkower of the Justice Department’s Civil Rights Division, with support from the U.S. Attorney’s Office for the Middle District of Georgia.
Defendants Sentenced for Roles in Marijuana Distribution ConspiracyRead the Press Release
ABILENE, Texas — Four defendants who have been convicted for their respective roles in a marijuana distribution conspiracy have been sentenced this week, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Three of those defendants, who were convicted after a five-day jury trial in February 2015, were sentenced yesterday, and one, who pleaded guilty to his role, was sentenced today.
Chief U.S. District Judge Jorge A. Solis sentenced Abilene, Texas, residents Jose Cavazos, 51, to 108 months in federal prison; Travis Kyndall Longoria, 22, to 120 months in federal prison; and David Rodriguez, 25, to 30 months in federal prison. Today, Judge Solis sentenced Brandon Johnson, 35, of Sweetwater, Texas, to 90 months in federal prison.
Daniel Longoria, 49, of Abilene, who was also convicted at trial, will be sentenced later, as will Fabricio Abelardo Perez, 43, of Abilene, who pleaded guilty to his role in the conspiracy.
Daniel Longoria, Cavazos, and Travis Longoria were each convicted at trial on an indictment charging one count of conspiracy to distribute and possess with intent to distribute 100 kilograms or more of marijuana. Rodriguez was found guilty at trial of the lesser charge of conspiracy to distribute and possess with intent to distribute less than 50 kilograms of marijuana. In January 2015, Perez and Johnson each pleaded guilty to the indictment.
According to evidence presented at trial and filed court documents, the investigation into the Daniel Longoria Drug Trafficking Organization (DTO) began when the Abilene Police Department learned that, since 2004, Daniel Longoria had been distributing marijuana from his business, Abilene Automotive and Performance. Daniel Longoria concealed marijuana in speaker boxes, and placed the speakers in vehicles so that the marijuana could be distributed throughout Abilene. Daniel Longoria also used vehicles that had been left at his business to conceal and transport large sums of bulk cash back to the DTO’s supply source in Mexico. All six defendants conspired together and worked together to transport and distribute large quantities of marijuana in Abilene.
The Abilene Police Department, the Texas Department of Public Safety and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Juanita Fielden and Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Defendants Plead Guilty to Defrauding Local UniversityRead the Press Release
PHILADELPHIA - Kenneth Kapikian, 57, of Wayne, Pennsylvania, and Dennis Gagliardi, 60, of Chester Springs, Pennsylvania, pleaded guilty today to conspiring to defraud the University of Pennsylvania. Kapikian pleaded guilty to six counts of wire fraud and one count of conspiracy to commit money laundering; Gagliardi pleaded guilty to four counts of wire fraud and one count of conspiracy to commit money laundering. Sentencing hearings are scheduled for September 14, 2015 for both defendants.
The defendants, engaged in a scheme to fraudulently obtain monies from the University of Pennsylvania by falsely billing the University for services the defendants never provided to the Sheraton University City Hotel. They directed vendors of the Sheraton University City Hotel to inflate their invoices submitted to the hotel and then pay them the fraudulently inflated amounts as kickbacks.
Kapikian faces a maximum possible sentence of 140 years in prison; Gagliardi faces a maximum statutory sentence of 100 years in prison; special assessments, supervised release, and possible fines.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
Covington Man Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROY JOSEPH BUSIERE, age 67, of Covington, pled guilty today to conspiracy to commit bank fraud.
According to court documents, BUSIERE, who worked as a comptroller for A & H Armature Works, Inc., embezzled from the company’s bank account at First American Bank. BUSIERE conspired with another to steal from A & H Armature Works, Inc. by using PayPal and American Express accounts to transfer the funds.
BUSIERE faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Kurt D. Engelhardt set sentencing for September 16, 2015.
U.S. Attorney Polite praised the work of the United States Secret Service, New Orleans Field Division in investigating this matter. Assistant United States Attorney Loan AMimi@ Nguyen is in charge of the prosecution.
Roy Joseph Busiere Factual Basis (348.39 KB)
Correctional Officers Charged with Conspiracy to Violate Civil RightsRead the Press Release
TALLAHASSEE – A federal grand jury returned an indictment, unsealed today, charging that correctional officers William J. Ray, 40, of Carrabelle, Florida, and Corry B. Fletcher, 43, of Bristol, Florida, conspired to violate the civil rights of a state inmate and deprived the inmate of constitutional rights at the Franklin Correctional Institution, a state prison in the Northern District of Florida. Fletcher was additionally charged with obstruction of justice. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, in July 2014, Ray and Fletcher, while acting as state correctional officers, conspired to intimidate a state prison inmate in the free exercise and enjoyment of the constitutional right not to be subjected to cruel and unusual punishment by correctional officers. The indictment further charges that Ray and Fletcher physically assaulted an inmate at the Franklin Correctional Institution without justification and caused the inmate bodily injury. The indictment finally charges that, in April 2015, Fletcher obstructed justice by intentionally misleading FBI and FDLE agents through false statements.
Ray and Fletcher were arrested this morning and arraigned in federal court today. The trial is scheduled for July 13, 2015, in Tallahassee.
The case is being investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement, with the assistance of the Florida Department of Corrections – Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Stephen M. Kunz.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Correctional Officers Charged with Conspiracy to Violate Civil RightsRead the Press Release
TALLAHASSEE – A federal grand jury returned an indictment, unsealed today, charging that correctional officers William J. Ray, 40, of Carrabelle, Florida, and Corry B. Fletcher, 43, of Bristol, Florida, conspired to violate the civil rights of a state inmate and deprived the inmate of constitutional rights at the Franklin Correctional Institution, a state prison in the Northern District of Florida. Fletcher was additionally charged with obstruction of justice. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, in July 2014, Ray and Fletcher, while acting as state correctional officers, conspired to intimidate a state prison inmate in the free exercise and enjoyment of the constitutional right not to be subjected to cruel and unusual punishment by correctional officers. The indictment further charges that Ray and Fletcher physically assaulted an inmate at the Franklin Correctional Institution without justification and caused the inmate bodily injury. The indictment finally charges that, in April 2015, Fletcher obstructed justice by intentionally misleading FBI and FDLE agents through false statements.
Ray and Fletcher were arrested this morning and arraigned in federal court today. The trial is scheduled for July 13, 2015, in Tallahassee.
The case is being investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement, with the assistance of the Florida Department of Corrections – Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Stephen M. Kunz.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Office
(850) 216-3854, [email protected]
Columbus Man Sentenced for Role in Marijuana Distribution RingRead the Press Release
COLUMBUS, Ohio – Kevin Whitely, 33, of Columbus, Ohio, was sentenced in U.S. District Court to 84 months in prison for distributing marijuana and money laundering.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, and Columbus Police Chief Kim Jacobs announced the sentence handed down today by Senior U.S. District Judge George C. Smith.
According to court documents, in April 2010, DEA, IRS and Columbus Division of Police initiated an investigation into a marijuana trafficking organization. The investigation revealed that from December 2009 through September 2013 Whitely was involved with a large scale narcotics organization responsible for importing and distributing multiple kilograms of marijuana throughout central Ohio. Through surveillance, cooperating defendants, shipping documents and narcotic seizures, it was determined that this organization utilized various Ohio residences, business fronts, commercial freight, semi tractor-trailers and vehicles to store and transport narcotics and currency.
Specifically, Whitely and others received approximately 2,400 kilograms of marijuana that was transported from suppliers in Houston, Texas, to various fraudulent businesses in Columbus, Ohio. In order to conceal the identity of the marijuana, the marijuana shipments were disguised as hair care products, beauty supplies and whole grain rice in tightly wrapped packaging. During the course of the drug operation, the organization generated a significant amount of illegal proceeds from the sale of marijuana.
On September 11, 2013, DEA, IRS and Columbus Division of Police executed a search warrant at a warehouse located on North Hamilton Road in Columbus, Ohio, and a residence utilized by Whitely located on Ilene Road in Columbus, Ohio.
Upon entering the warehouse, agents observed Whitely and three other individuals removing numerous packages concealed inside approximately 12-15 pool tables. The packages contained approximately 500 kilograms of marijuana. It was determined that the marijuana originated in Texas and was delivered by commercial freight to the North Hamilton Road warehouse. Whitely and the co-conspirators intended to repackage the marijuana for the purpose of selling it to other drug traffickers in the Columbus area. In addition to the marijuana seized at the warehouse, law enforcement also seized $65,255 in U.S. currency from Whitley’s Ilene Road residence.
During the course of the drug conspiracy, Whitely earned substantial income from the sale of narcotics. Whitely used his drug proceeds to purchase assets and fund bank accounts through the use of nominees. Specifically, in March 2012 Whitley used a nominee to purchase a 2012 Infinitity G37 for approximately $44,000. Initially, Whitley paid the nominee $5,000 in cash to purchase the vehicle, and then paid the nominee $500 in cash per month until the vehicle was paid off.
Whitely also used a credit card obtained in a nominee name as his personal credit card. Whitely paid the nominee with cash earned from his drug sales for the charges he made on this credit card. In addition, Whitely deposited cash directly into the nominee’s bank account to reimburse the nominee for expenditures made by Whitley. Some of the transactions made by Whitely with this credit card included renting vehicles used to facilitate his drug trafficking activities.
Whitley pleaded guilty on October 28, 2014 to conspiracy to possess with the intent to distribute more than 1,000 kilograms of marijuana and money laundering.
He was ordered to forfeit $65,255 in cash that was seized during the execution of a search warrant on Ilene Road, Columbus, Ohio on September 11, 2013.
“All financial transactions leave a trail and we have the unique expertise to follow those leads,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Not only is a criminal going to jail for his crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture.”
U.S. Attorney Stewart commended the cooperative investigation by the DEA, IRS-Criminal Investigation and the Columbus Division of Police, as well as Assistant United States Attorney Kenneth F. Affeldt, who is representing the United States in this case.
Coeur d'Alene Man Sentenced for Meth DistributionRead the Press Release
COEUR D'ALENE - Sean Ryan Hanich, 30, of Coeur d’Alene, Idaho, was sentenced yesterday to 77 months in prison followed by five years of supervised release for his involvement in a conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered forfeiture in the amount of $20,000. Hanich pleaded guilty to the charge on October 22, 2014.
According to court documents, Hanich admitted that on eight occasions, between December 2013, and March 2014, he distributed methamphetamine to an informant. In total, Hanich delivered approximately one half-pound of methamphetamine. Hanich has been in federal custody since his arrest in July 2014.
The case was investigated by Drug Enforcement Administration (DEA) and Idaho State Police (ISP), with the assistance of the North Idaho Violent Crimes Task Force.
Clear Lake Felon Sent to Prison for Possessing AmmunitionRead the Press Release
A twice convicted felon who possessed an assortment of ammunition was sentenced yesterday to more than six years in federal prison.
David Kuhlemeier, age 50, from Clear Lake, Iowa, received the prison term after a March 12, 2015, guilty plea to one count of possessing ammunition as a felon.
At the guilty plea hearing, Kuhlemeier admitted that he possessed a large assortment of ammunition. Further, he admitted to being a twice convicted felon guilty of burglaries in Pocahontas and Emmet Counties. The ammunition was found in his residence pursuant to a search warrant. During sentencing, the Court noted the numerous aggravating factors warranting Kuhlemeier’s sentence including numerous convictions, six of which involved theft and the two burglaries, and over 100 traffic violations.
Kuhlemeier was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 77 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Kuhlemeier is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Steve Young and investigated by the Clear Lake Police Department.
Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR15-3001.
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Charlotte-Area Appliance Repairman Pleads Guilty to $576,000 Fraudulent Warranty Claim Scheme, Filing False Tax ReturnRead the Press Release
CHARLOTTE, N.C. – The owner and operator of Charlotte-area appliance repair companies pleaded guilty today to wire fraud and filing a false tax return, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. John Wesley Clark, 42, of Charlotte, N.C., appeared before U.S. Magistrate Judge David S. Cayer and admitted to submitting false and fraudulent warranty work order claims to an electronics company and to filing a false income tax return.
Thomas J. Holloman, III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service join Acting U.S. Attorney Rose in making today’s announcement.
According to the filed court documents and today’s plea hearing, beginning in at least 2010 and continuing through 2012, Clark, also known as John Isaacs, Jonathan Fitzgerald, and JA Adams, engaged in a scheme to defraud a major electronics company based in New Jersey by submitting false and fraudulent warranty work order claims, resulting in payments of $576,000 for warranty work that was not performed. Clark was the owner and operator of various Charlotte area appliance repair companies, including JA Appliance Co; Fitzgerald Appliance Co; BR Appliance; C&A Appliance Co.; D&L Appliance Co.; and J&S Appliance Co. Court records indicate that Clark, sometimes using an alias, established his companies as authorized service centers for the major electronics company. He then submitted fraudulent warranty work orders that listed, among other things, false customer information, false addresses, false part numbers, and false repair dates.
For tax years 2010 through 2012, Clark failed to report all of the income he obtained through the fraudulent warranty claims on his federal tax returns. Additionally, Clark filed fraudulent forms W-2 with his federal tax returns that falsely stated that tax withholding had been paid over to the IRS.
Clark pleaded guilty to one count of wire fraud and one count of filing a false tax return. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The filing a false tax return charge carries a maximum penalty of three years in prison and a $250,000 fine. As part of today’s plea agreement, Clark has agreed to pay restitution, the amount of which will be determined by the Court at Clark’s sentencing hearing, which has not been scheduled yet. Clark was released on bond following his plea hearing.
The investigation of the case was handled by IRS-CI and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Cedar Rapids Felon and Meth User Sent to Prison for Eight Years for Possessing a Firearm and AmmunitionRead the Press Release
A convicted felon and methamphetamine user who possessed a firearm and ammunition within the City of Cedar Rapids, Iowa, was sentenced today to eight years in federal prison.
Ricky Joe Vaughn, age 36, of Cedar Rapids, Iowa, received the prison term after a March 4, 2015, guilty plea to one count of possessing a firearm and ammunition as a felon.
At the guilty plea hearing, Vaughn admitted that he knowingly possessed a Ruger SR1911 Commander .45 caliber pistol and Winchester .45 ammunition on October 6, 2014, in Cedar Rapids. Vaughn also admitted to prior felony convictions in state court for manufacturing methamphetamine and theft.
Vaughn was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 96 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Vaughn is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the FBI’s Safe Streets Task Force and the Cedar Rapids Police Department.
Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR15-0005.
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CFO Sentenced to Prison for Check Kiting Scheme, Tax EvasionRead the Press Release
ERIE, Pa. - A resident of Bradenton, Florida, has been sentenced in federal court to 27 months in jail, and ordered to make restitution to Thayer Power and Communication in the amount of $202,789 and to the Internal Revenue Service in the amount of $87,840 on his conviction of bank fraud and tax evasion, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Brian M. Quimby,
According to information presented to the court, while Quimby was employed as CFO of Thayer Power and Communications, he engaged in an extensive check kiting scheme defrauding Key Bank and Thayer Power and Communication. In addition, Quimby failed to file his income tax return for calendar year 2007.
Prior to imposing sentence, Judge Cohill stated that he was troubled that Quimby had falsely told the IRS that he had mailed his tax return knowing that he had not filed the return with the IRS.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Quimby.
Beaufort Resident Sentenced for Making False Distress Calls to the U.S. Coast GuardRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced BRANDON PAUL GARNER , 32, of Beaufort, North Carolina, to 28 months of imprisonment and 3 years supervised release and was ordered to pay $18,994.00 in restitution. On March 10, 2015 GARNER entered a guilty plea to making false distress calls to the United States Coast Guard.
"The Coast Guard has a long and proud history of Search and Rescue, often at great personal risk to those who chose to devote their life to the service of others. False distress calls incur significant cost to the public by obligating search resources and vast amounts of tax payer dollars. More importantly, they risk the very lives of responders for cases where no actual distress exists. Additionally, these false distress calls take search and rescue resources away from those who may be in real distress," said Captain Sean Murtagh, commander of Sector North Carolina. “Through the vigilance of the public, our strong partnerships with the Department of Justice, the U.S. Attorney's Office, and our Coast Guard Investigative Service, this case affirms our collective commitment to holding accountable those individuals who make hoax calls."
According to information in the public record, on October 20, 2013, the United States Coast Guard received a “MayDay” call in which the caller claimed a vessel with five adults and two children was taking on water and sinking near the Core Creek Bridge in Beaufort, North Carolina. The calls indicated that one child was stuck on the vessel and could not be seen. Upon receipt of the distress call, small boats from Coast Guard Station Fort Macon, North Carolina; a helicopter from the Marine Corps Air Station at Cherry Point, North Carolina; a towboat from a local salvage company; and emergency responders from the sheriff’s office and two fire departments were deployed to assist in the search and rescue of the vessel. However, response crews found no vessel or persons in distress. Ultimately, the Coast Guard determined that the call was a hoax, but not until after $18,994.00 worth of resources were expended.
The search and rescue efforts were led by United States Coast Guard – 5th District and Coast Guard Sector North Carolina. The criminal investigation of this case was conducted by the United States Coast Guard Investigative Service. Assistant United States Attorney Susan B. Menzer prosecuted the case.
Arizona Woman Arrested on Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Bethzabeth Guadalupe Castro-Gallegos, 32, of Phoenix, Ariz., made her initial appearance this morning in federal court in Albuquerque, N.M., on a criminal complaint charging her with possession of methamphetamine and heroin with intent to distribute. Castro-Gallegos remains in federal custody pending a preliminary hearing and a detention hearing which are scheduled for tomorrow.
Castro-Gallegos was arrested yesterday after DEA agents allegedly seized approximately 5.28 pounds of methamphetamine and 4.84 pounds of heroin from her baggage during a consensual search at the Amtrak Train Station in Albuquerque.
If convicted on the charges in the criminal complaint, Castro-Gallegos faces a statutory minimum penalty of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Anderson County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 22-year-old Palestine, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Abel Estrada Jr. pleaded guilty on Feb. 19, 2015, to possession of methamphetamine with the intent to distribute and was sentenced to 33 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Oct. 25, 2013, in Palestine, Texas, Estrada Jr. delivered approximately 28 grams of methamphetamine to an individual in Palestine, Texas. The court also found that from October 1, 2013 through September 24, 2014, Estrada distributed at least 40 grams of a methamphetamine and that during that time period, Estrada Jr. and received at least $10,000.00 from the delivery of methamphetamine.
This case was investigated by the Palestine City Police Department, the Anderson County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant U.S. Attorney Jim Noble.