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10 June 2015
Alabama man, Shreveport woman sentenced for methamphetamine distribution conspiracyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that an Alabama man was sentenced to 168 months in prison and a Caddo Parish woman was sentenced to 120 months in prison for conspiracy to distribute methamphetamine.
Mazda Rasasy, 37, of Daphne, Ala., and Angela Dawn Hardin, 46, of Shreveport, were sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to distribute methamphetamine. They were also sentenced to four years of supervised release. According to evidence presented at the guilty pleas, Rasasy and Hardin conspired to possess with intent to distribute more than 50 grams or more of methamphetamine in August of 2013. Law enforcement agents seized 69.6 grams of methamphetamine on August 9, 2013 from Rasasy’s vehicle after he became a target in a local methamphetamine trafficking investigation. Agents later searched Hardin’s residence, where another 141.9 grams of methamphetamine and 17 firearms were seized. Agents learned during the investigation that Rasasy occasionally drove methamphetamine from Alabama to Shreveport, and Hardin allowed him to use her home as a base while he sold the methamphetamine in the area. Rasasy has a prior federal conviction for distributing methamphetamine.
The DEA and ATF conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Abilene Couple Sentenced on Methamphetamine Conspiracy and Distribution ConvictionsRead the Press Release
ABILENE, Texas — A married couple from Abilene, Texas, was sentenced today following their guilty pleas earlier this year to drug distribution and conspiracy charges, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Chief U.S. District Judge Jorge A. Solis sentenced Juan Jose Torres a.k.a. “Nano”, 39, to 168 months in federal prison, and he sentenced Anna Lisa Torres, 30, to 24 months in federal prison. Each pleaded guilty earlier this year to one count of conspiracy to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine. Juan Torres has been in custody since his arrest in September 2014. Judge Solis ordered Anna Torres to surrender to the Bureau of Prisons on July 15, 2015.
According to documents filed in their case, Juan and Anna Torres conspired with each other, and with others, to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine. On May 16, 2014, Juan and Anna Torres met an individual at an agreed-upon parking lot where Juan Torres provided the buyer with two clear plastic baggies of methamphetamine. Then, on May 21, 2014, Juan Torres told a buyer who had asked for a full ounce of methamphetamine that he did not have that amount, but he could get him an “8-ball.” Juan Torres advised that his son (age 13) got out of school at 3:30 p.m., and the buyer could get it from him. That afternoon, the buyer went to the Torres’ home, and the son sold the buyer 3.8 grams of methamphetamine in exchange for $160.
The Texas Department of Public Safety, the Abilene Police Department and the FBI investigated. Assistant U.S. Attorney Juanita Fielden prosecuted.
77-Year Sentence Imposed on Anchorage Man for Conviction for Drug Trafficking, Kidnapping, and Using Firearms in Furtherance of Those CrimesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that United States Chief District Court Judge Ralph R. Beistline sentenced an Anchorage man, Phosavan Khamnivong, a.k.a. “P.K.,” 34, to 77 years’ imprisonment following his February 2015 convictions on drug trafficking conspiracy, two kidnapping charges, and two firearm charges.
According to court documents, Khamnivong has a prior conviction for Murder in the Second Degree, for the 1997 killing of a Kodiak cab driver. Khamnivong served approximately ten years of a 25-year sentence in that case. Shortly after his release, he immersed himself in the world of drug trafficking, becoming a large scale distributor of heroin and methamphetamine. One of the people he distributed drugs to was “Victim A,” a friend that Khamnivong met while he was prison. In late 2012 to early 2013, the defendant became associated with Stuart Seugasala. The men started bringing nearly pure methamphetamine, as well as other drugs, into Alaska from California. On March 13, 2013, Seugasala, Khamnivong, Timothy Miller, a.k.a. “Lil Tone,” and Anoai Sialofi, a.k.a. “A-Loc,” kidnapped, tortured, and sexually assaulted Victims A and B, because Victim A owed Khamnivong a past due heroin debt. At Seugasala’s direction, the sexual assault of one of the victims was videotaped so that he could intimidate others that owed the group money. The victims were released after over three hours and only after Victim A agreed to repay the drug debt to Khamnivong.
On May 16, 2013, an Anchorage Police Officer attempted to pull over Khamnivong’s vehicle after Khamnivong met with Seugasala in Anchorage. Khamnivong provided his license and registration, but fled when the officer expressed an interest in searching Khamnivong’s vehicle. As he fled, Khamnivong hit two police cars and then threw a loaded firearm from his vehicle. The firearm was found by a citizen on the sidewalk near Steller Secondary School, and turned into police.
Khamnivong was indicted in the federal case in August 2013, and remained a fugitive until December 2013, when he was arrested by the U.S. Marshals Fugitive Task Force. At arrest, agents recovered more drugs, guns and money.
Judge Beistline previously sentenced Stuart Seugasala to life imprisonment after a jury trial. Judge Beistline also sentenced Stacy Laulu, who went to trial with Seugasala and was convicted of HIPAA violations, to two years imprisonment. Co-defendant Anoai Sialofi was sentenced to 235 months imprisonment and co-defendant Timothy Miller was sentenced to a term of 12 years imprisonment.
In imposing the 77-year sentence on Khamnivong, Judge Beistline noted the defendant’s long criminal history, beginning when he was a juvenile, which culminated with the murder of the innocent cab driver for seven dollars. Judge Beistline noted that “he would have paid more than seven dollars for a chance at life.”
Judge Beistline then noted that when Khamnivong was released, he set himself up as a “big time heroin dealer” in Anchorage, who associated with “Seugasala and other criminals.” In comparison to Seugasala, Judge Beistline stated that Khamnivong was “equally evil in his desires and designs,” noting that he showed no mercy to Victim A, but rather “showed sick cruelty” that “didn’t stop until he promised to pay.” After the crime, Judge Beistline commented that Khamnivong “ran and hid, surrounding himself with an arsenal of weapons and drugs.”
Judge Beistline noted that a 77-year sentence was appropriate because Khamnivong was a “heartless career criminal and a danger to the community,” and stated that he did not think “there was any chance” that Khamnivong would change.
Ms. Loeffler commends the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Anchorage Police Department, the Alaska State Troopers, and the Valdez Police Department for the investigation that led to the convictions in this case.
18 Waco Area Aryan Brotherhood Members and Associates Sentenced to Federal Prison for Role in Methamphetamine Distribution OperationRead the Press Release
In Waco today, a federal district judge sentenced 18 Aryan Brotherhood (AB) members and associates to federal prison for their roles in a methamphetamine distribution conspiracy announced Acting United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
United States District Judge Walter S. Smith sentenced:
David Aguilar, age 35, of Belton, TX, to 188 months imprisonment followed by 5 years of supervised release;
Oscar Walker (aka “Country”), age 30, of Temple, TX, to 188 months imprisonment followed by 5 years of supervised release;
Ronnie Johnson, age 49, of Belton, to 151 months imprisonment followed by 5 years of supervised release;
Christopher Breckenridge, age 39, of Gatesville, to 130 months imprisonment followed by 5 years of supervised release;
Robert Morgan (aka “Hopper”), age 45, of Temple, to 121 months imprisonment followed by 5 years of supervised release;
John McLaughlin, age 34, of Temple, to 120 months imprisonment followed by 5 years of supervised release;
William Hubert Brackett, age 24, of Temple, to 108 months imprisonment followed by 5 years of supervised release;
Lucas West, age 29, of Lampasas, TX, to 84 months imprisonment followed by 5 years of supervised release;
James Malady, age 28, of Belton, to 84 months imprisonment followed by 5 years of supervised release;
Ricky Levy, age 54, of Nolanville, TX, to 84 months imprisonment followed by 5 years of supervised release;
Joshua Wilkins, age 27, of Gatesville, TX, to 60 months imprisonment followed by 5 years of supervised release;
Michelle Johnson, age 47, of Belton, to 60 months imprisonment followed by 5 years of supervised release;
Nicole Marshall, age 35, of Gatesville, TX, to 60 months imprisonment followed by 5 years of supervised release;
Farron Russell, age 34, of Belton, to 48 months imprisonment followed by 3 years of supervised release;
Thomas Clifton, age 46, of Waco, to 48 months imprisonment followed by 3 years of supervised release;
Jeremiah Jones, age 37, of Gatesville, to 37 months imprisonment followed by 3 years of supervised release;
Larry Wayne Jeremiah, age 33, of Belton, to 24 months imprisonment followed by 3 years of supervised release; and,
Robert Blake Doty, age 32, of Temple, to 21 months imprisonment followed by 3 years of supervised release.
In addition to the prison and supervised release terms, Judge Smith ordered each defendant to pay a $1,000 fine.
Sentencing for three defendants, originally set for today, was continued. Loren Swanson, age 40, of Belton, is now set for 1:00 tomorrow afternoon. Vicki Kay Levy, age 52, of Belton, is now set for 1:00pm on June 17, 2015. Amanda Petrie, age 35, of Temple, is now set for 1:00pm on August 12, 2015.
Seven other defendants are scheduled to be sentenced at 1:00pm on June 24, 2015. They are: 40-year-old Robert Eaton (aka “Compound Rob”) of Kempner, TX; 52-year-old Henry David Walker (aka “Stalker”) of Temple; 55-year-old Wayne Martin Huisinger of Belton; 40-year-old Eric Ganos of Temple; 49-year-old Kirt Easter of Belton; 30-year-old Robert Helms of Temple; and, 23-year-old Sonya Whitenburg of Flat, TX.
Ronnie Knepler, age 54, of Belton, and Jose Rodriguez, age 25, a resident alien living in Dallas, are scheduled to be sentenced on July 8, 2015. Sylvia O’Neal, age 41, of Temple, is scheduled to be sentenced on August 5, 2015, and Colby Warren, age 40, of Gatesville, is scheduled to be sentenced on September 2, 2015.
All of the defendants named above pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. Robert Eaton also pleaded guilty to one count of possession of a firearm during a drug trafficking crime and one count of felon in possession of a firearm. David Henry Walker also pleaded guilty to two counts of felon in possession of a firearm. During this 10-month-long operation, investigators conducted several controlled methamphetamine purchases. To date, authorities have seized approximately nine pounds of “crystal” methamphetamine, 15 firearms, over $9,000 in U.S. Currency and other assets in connection with this investigation.
“These sentences resulted from unprecedented collaboration of federal, state, and local law enforcement targeting a large-scale prison gang involved in violent organized crime over three counties in Central Texas,” said FBI Special Agent in Charge Christopher Combs. “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises regardless of where they lay their heads.”
Derrick Cooper (aka “Red”), age 35, of Temple, and Chris Voerhis (aka “Lurch”), age 50, of Moffat, TX, were also charged by federal grand jury indictment as a result of this investigation. On June 5, 2015, Cooper withdrew his guilty plea to one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine. He is scheduled for jury selection and trial on August 3, 2015, in Waco before Judge Smith. Voerhis, who was arrested on Monday, is scheduled to have his detention hearing tomorrow at 2:00pm before U.S. Magistrate Judge Jeffrey C. Manske in Waco. He is charged with one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine. Cooper and Voerhis face between five and 40 years imprisonment upon conviction.
“Operation ‘La Flama Blanca’ has inflicted a debilitating blow to the network of shadow and often violent facilitators of the Aryan Brotherhood of Texas,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration--Houston Field Division. “This operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Aryan Brotherhood and the corresponding impact that this horrific drug inflicts on our communities.”
This case is the result of a joint investigation conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration together with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Temple Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, McLennan County Sheriff’s Office, Coryell County Sheriff’s Office, Bell County Sheriff’s Office, Gatesville Police Department, Lampasas Police Department, Killeen Police Department, Austin Police Department and the United States Marshals Service. Assistant United States Attorneys Mark Frazier and Stephanie Smith-Burris are prosecuting this case on behalf of the Government.
14 Alleged Members of “Black Guerilla Family” Gang Charged with Participation in Violent Racketeering EnterpriseRead the Press Release
Baltimore, Maryland - A federal grand jury returned a racketeering indictment charging 14 defendants for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (BGF). The indictment, which was returned on June 3, 2015 and unsealed today, charges 14 alleged BGF gang members with conspiring to violate federal racketeering and drug trafficking laws. Two defendants also are charged with conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering. Four defendants are also charged with using a gun in relation to violent crimes; and one defendant also faces charges of drug trafficking, possession of a gun in furtherance of drug trafficking and illegal possession of a gun.
This brings to 118 the total number of alleged BGF members and associates indicted in federal court since April 2009.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt, Federal Bureau of Investigation; Acting Assistant Special Agent in Charge Shawn R. Ellerman of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts, Baltimore Police Department; Chief Gary Gardner of the Howard County Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Federal, state and local agencies have joined to target leaders and key members of violent gangs operating in Baltimore City,” said U.S. Attorney Rod J. Rosenstein. “Today’s indictment alleges that the Black Guerilla Family gang is an organized criminal enterprise with leaders and members who deal drugs and commit violent crimes. Anyone who joins a criminal gang can be held accountable for all crimes committed by fellow gang members.”
The following defendants, all of Baltimore unless otherwise specified, are charged in the indictment unsealed today:
Timothy Michael Gray, a/k/a “Mike Gray,” “Uncle Mike,” “MG,” and “M”, age 47,
Robert Nedd, a/k/a “Pizza,” and “P,” age 44,
Mark Bazemore, a/k/a “Uncle Mark,” age 30,
Marshall Spence, “a/k/a “Uncle M,” age 33,
Irvin Vincent, a/k/a “O,” and “O-dog,” age 26, of Hanover, Maryland;
Glendrict Frazier, a/k/a “Glen” and “Uncle Glen,” age 51,
Timothy Hurtt, a/k/a “Uncle Tim,” and “Tim,” age 44,
William Harrington, a/k/a “Boosie” and “Boosey,” age 34,
Tyrone Franklin, a/k/a “Bones,” age 35,
Troy Kellam, a/k/a “G,” age 29,
Calvin Palmer, a/k/a “C,” age 21,
Davon Robinson, a/k/a “Veeto,” age 26,
Michael Smith, Jr., a/k/a “Mikey,” “Lil Mike,” and “Mik,” age 29, and
Daquan Burman, a/k/a “Day-Day,” age 20.
According to the nine count indictment, the 14 defendants are members and associates of the BGF, or “Jamaa,” the Swahili word for family, “J” for short, a nationwide gang operating in prisons and on the streets of cities throughout the United States. Founded in California in the 1960s, BGF appeared in the Maryland correctional system in the 1990s. Although still a prison gang, BGF is involved in criminal activity, including murder, robbery, extortion, narcotics trafficking, obstruction of justice, and witness intimidation throughout communities in Baltimore City, in Maryland, and elsewhere.
All 14 defendants are charged in the superseding indictment with conspiring to conduct the affairs of BGF through a pattern of criminal activity from at least 2012 to the present, including: narcotics trafficking, murder; extortion; robbery, and retaliation against a witness or informant. All 14 defendants are also charged with conspiracy to distribute heroin, cocaine base (crack), cocaine and oxycodone. The defendants are alleged to have distributed drugs to customers in the Baltimore area, including the area of Pratt and Payson Streets, a BGF-controlled drug shop at Baltimore and Catherine Streets, and on Lemmon Street, all in Baltimore City. Vincent is also alleged to have distributed wholesale quantities of heroin to a coconspirator, who then sold the heroin for Vincent to customers in Howard County, Maryland.
More specifically, the indictment alleges that Gray was the city-wide commander of BGF on the streets of Baltimore since 2013. Gray and Hurtt collected money from BGF gang members and commanders who controlled BGF drug shops throughout Baltimore. Between September and December 2013, Gray sanctioned the murder of a BGF gang member, then watched as another BGF gang member fired several shots at the victim attempting to kill him. Gray also sanctioned the murder of second BGF member, a/k/a “Newbie.” In May of 2014, Gray allegedly authorized the shooting of Victim 3, and in June of 2014, authorized the murder of “Gutter,” an unknown person.
The indictment further alleges that on three separate occasions, Vincent distributed heroin to other heroin distributors which caused the death of three of the distributors’ customers, who died from “heroin and oxycodone intoxication” on November 14, 2013; “heroin intoxication” on December 4, 2013; and “morphine and fentanyl intoxication” on May 1, 2014.
According to the indictment, on March 10, 2014, after confirming with Bazemore that an order still existed to kill Victim 3, Harrington shot the victim in Baltimore, and was driven from the location by Burman. On May 25, 2014, Harrington advised Palmer that Victim 3 was trying to have Harrington sanctioned, while in jail, for shooting him. On May 27, 2014, Harrington was assaulted in jail by other BGF members for shooting Victim 3.
The indictment alleges that on June 15, 2014, Robinson ordered an unindicted coconspirator to assault Palmer who was being sanctioned by Victim 5. The next day, Kellam and Franklin murdered Victim 5.
The indictment further alleges that on September 11, 2014, Spence murdered BGF gang member Victim 6, a minor, by firing multiple gun shots, including one to the victim’s face, in Baltimore. From September to November 2014, in a telephone conversation between Spence and a minor, Spence allegedly threatened and intimidated the minor, who was a witness in the investigation into the homicide of Victim 6. Spence and a fellow BGF gang member discussed the murder of witnesses who were involved with the investigation into the homicide of Victim 6.
The defendants face a maximum sentence of life in prison on the racketeering and drug conspiracies. Harrington and Bazemore also face a maximum sentence of 10 years in prison for conspiring to commit murder in aid of racketeering and attempted murder in aid of racketeering; and a mandatory minimum of 10 years in prison consecutive to any other sentence and a maximum sentence of life in prison for using a gun to conspire to commit murder in aid of racketeering and attempted murder in aid of racketeering. Gray, Bazemore, Frazier and Hurtt also face a maximum sentence of 20 years in prison for conspiring to use and carry a gun in relation to a crime of violence and drug trafficking. Vincent faces a maximum sentence of 20 years in prison for possession with intent to distribute heroin, a mandatory minimum of 10 years in prison consecutive to any other sentence and a maximum sentence of life in prison for possessing a gun in furtherance of a drug trafficking crime and 10 years in prison for being a felon in possession of a gun.
The defendants are expected to have their initial appearance in U.S. District Court in Baltimore this afternoon.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Mr. Rosenstein praised the FBI, DEA, Baltimore City and Howard County Police Departments and Baltimore State’s Attorney’s Office for their assistance in this investigation and prosecution. Mr. Rosenstein also commended the Anne Arundel County and Baltimore County Police Departments for their assistance in the investigation.
United States Attorney Rod J. Rosenstein thanked Baltimore City Assistant State’s Attorneys Traci Robinson, Charles Blomquist and Matthew Hoff for their work in the investigation and prosecution, and Assistant United States Attorneys James T. Wallner and Clinton J. Fuchs, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
9 June 2015
Universal Aryan Brotherhood Member and Associates Plead Guilty to Racketeering ChargesRead the Press Release
One member of the Universal Aryan Brotherhood (UAB) prison gang pleaded guilty today to an indictment charging him with conspiracy to participate in a racketeering enterprise and conspiracy to possess with intent to distribute methamphetamine, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Anthony Ramon Hall, 39, of Tulsa, Oklahoma, pleaded guilty before U.S. District Court Judge Claire V. Eagan of the Northern District of Oklahoma. In addition, on June 2, 2015, UAB associate Carl Matthew Smith, 37, of Tulsa, pleaded guilty to conspiracy to participate in a racketeering enterprise and conspiracy to possess with intent to distribute methamphetamine. On June 4, 2015, UAB associate Robert Allen Paul Bryan, 40, of Tulsa, pleaded guilty to one count of violence in aid of racketeering connected to the maiming of a former UAB member. Hall’s sentencing is set Sept. 24, 2015, Smith’s sentencing is set for Sept. 3, 2015. Bryan’s sentencing is set for Sept. 22, 2015.
In connection with their guilty pleas, Hall and Smith acknowledged their membership in or association with the UAB, a violent, “whites only” prison-based gang with members and associates operating inside and outside of state prisons throughout Oklahoma. Hall also admitted that he held a leadership position in the UAB’s “main council,” which is the supreme governing body of the UAB. The main council has the authority to issue direct orders, vote on the admission of new members or prospects, declare war on rival gangs and mete out punishment for violation of UAB bylaws.
Hall and Smith further admitted to advancing the UAB enterprise by selling methamphetamine. Specifically, Hall admitted to using smuggled cell phones to coordinate the delivery, receipt and sale of methamphetamine from prison by UAB members and associates outside of prison who would then return profits to him. Hall also admitted to coordinating the firebombing of a car belonging to a person he believed had stolen from UAB’s methamphetamine enterprise. Smith admitted to selling methamphetamine and marijuana for the benefit of the UAB as well, and to delivering drug proceeds to UAB members in prison.
During his plea proceedings, Bryan admitted to participating in the May 2013 maiming of a former UAB member. Specifically, Bryan admitted that he and UAB members, operating on orders from the main council, restrained the victim while additional gang members used a heated knife to burn off the victim’s UAB neck tattoo.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Tulsa, Oklahoma, Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigations Division; FBI; Tulsa County Sheriff’s Office; and the Oklahoma Department of Corrections. The case is being prosecuted by John C. Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma.
Universal Aryan Brotherhood Member and Associates Plead Guilty to Racketeering ChargesRead the Press Release
TULSA, Okla.-One member of the Universal Aryan Brotherhood (UAB) prison gang pleaded guilty today to an indictment charging him with conspiracy to participate in a racketeering enterprise and conspiracy to possess with intent to distribute methamphetamine, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Anthony Ramon Hall, 39, of Tulsa, pleaded guilty before U.S. District Court Judge Claire V. Eagan of the Northern District of Oklahoma. In addition, on June 2, 2015, UAB associate Carl Matthew Smith, 37, of Tulsa, pleaded guilty to conspiracy to participate in a racketeering enterprise and conspiracy to possess with intent to distribute methamphetamine. On June 4, 2015, UAB associate Robert Allen Paul Bryan, 40, of Tulsa, pleaded guilty to one count of violence in aid of racketeering connected to the maiming of a former UAB member. Hall’s sentencing is set Sept. 24, 2015, Smith’s sentencing is set for Sept. 3, 2015. Bryan’s sentencing is set for Sept. 22, 2015.
In connection with their guilty pleas, Hall and Smith acknowledged their membership in or association with the UAB, a violent, “whites only” prison-based gang with members and associates operating inside and outside of state prisons throughout Oklahoma. Hall also admitted that he held a leadership position in the UAB’s “main council,” which is the supreme governing body of the UAB. The main council has the authority to issue direct orders, vote on the admission of new members or prospects, declare war on rival gangs and mete out punishment for violation of UAB bylaws.
Hall and Smith further admitted to advancing the UAB enterprise by selling methamphetamine. Specifically, Hall admitted to using smuggled cell phones to coordinate the delivery, receipt and sale of methamphetamine from prison by UAB members and associates outside of prison who would then return profits to him. Hall also admitted to coordinating the firebombing of a car belonging to a person he believed had stolen from UAB’s methamphetamine enterprise. Smith admitted to selling methamphetamine and marijuana for the benefit of the UAB as well, and to delivering drug proceeds to UAB members in prison.
During his plea proceedings, Bryan admitted to participating in the May 2013 maiming of a former UAB member. Specifically, Bryan admitted that he and UAB members, operating on orders from the main council, restrained the victim while additional gang members used a heated knife to burn off the victim’s UAB neck tattoo.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Tulsa Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigations Division; FBI; Tulsa County Sheriff’s Office; and the Oklahoma Department of Corrections. The case is being prosecuted by John C. Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma.
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United States Settles Kickback Allegations with Georgia HospitalRead the Press Release
WASHINGTON – The Department of Justice announced today that the United States has settled a False Claims Act lawsuit with Health Management Associates (HMA) and Clearview Regional Medical Center for $595,155. The lawsuit filed in the Middle District of Georgia alleged that from 2008 to 2009 the hospital paid kickbacks to an obstetric clinic that served primarily undocumented Hispanic women, in return for referral of those patients for labor and delivery at the hospital. The hospital then billed the Medicaid program in Georgia for the services provided to the referred patients. Clearview, located in Monroe, Georgia, was named Walton Regional Medical Center and was owned by hospital operator HMA during the time period relevant to the lawsuit. Clearview is now owned by Community Health Systems (CHS), which purchased HMA in January 2014.
“This resolution illustrates our commitment to ensuring that health care providers who pay kickbacks in return for patient referrals are held accountable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Schemes such as this one corrupt the health care system and take advantage of vulnerable patients.”
“The Medicaid program is a vital part of the government’s efforts to make sure that everyone has access to health care,” said U.S. Attorney of the Middle District of Georgia Michael Moore. “Instead of providing health care services to expectant mothers in its area and receiving payment for those services from Medicaid, the hospital participated in a scheme to pay kickbacks in exchange for having pregnant women from outside its market funneled to its facility with the goal of increasing the amount of Medicaid money the hospital could claim.”
The United States’ complaint alleges that HMA’s Walton Regional Medical Center paid kickbacks to Hispanic Medical Management doing business as Clinica de la Mama (Clinica) and related entities, in return for Clinica’s agreement to send pregnant women to Walton Regional for deliveries paid for by Medicaid, in violation of the federal Anti-Kickback Statute. The kickbacks were disguised as payments for a variety of services allegedly provided by Clinica.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“Hospitals that pay kickbacks to clinics for referrals of undocumented pregnant patients are taking advantage of both these vulnerable women and the taxpayer-funded Medicaid program,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Atlanta Regional Office. “Our agency is dedicated to investigating such corrosive kickback schemes, which undermine the public’s trust in medical institutions and the financial health of government health care programs.”
“The FBI is proud of the role it played in bringing forward today’s settlement, said Special Agent in Charge J. Britt Johnson of the FBI Atlanta Field Office. “The FBI will continue to provide significant investigative assets and resources to ensure that the integrity of federally funded health care programs such as Medicaid are protected from providers who would abuse them.”
As part of the settlement, HMA and Clearview will pay the State of Georgia an additional $396,770 to settle Georgia’s claims under the Georgia False Medicaid Claims Act. The Medicaid program is a jointly funded federal-state program that provides health care to the poor and disabled. Although undocumented aliens are not eligible for regular Medicaid coverage, the Medicaid program provides coverage for emergency conditions, including childbirth, for undocumented aliens.
The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it did in this case against Walton Regional, as well as several other defendants, including Clinica de la Mama and four hospitals owned by Tenet Healthcare Corporation. The litigation against the non-settling defendants is ongoing. The relator, Ralph D. Williams, the chief financial officer of Walton Regional from April 2009 to October 2009, will receive $119,031 from the United States’ portion of the settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the Middle and Northern Districts of Georgia, HHS-OIG, FBI and the Office of the Attorney General for the State of Georgia.
The case is captioned United States ex rel. Williams v. Health Mgmt. Assocs. Inc., et al., No. 3:09-CV-130 (M.D. Ga.).
The claims resolved by this settlement are allegations only and there has been no determination of liability.
UPMC Claims Department Employee Charged in Fraud SchemeRead the Press Release
PITTSBURGH - An Armstrong County woman has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud and health care fraud, United States Attorney David J. Hickton announced today.
The eleven-count indictment named Francine Ann Priestas, 47, as the sole defendant.
According to the indictment presented to the court, Francine Ann Priestas was employed as a supervisor in the UPMC Health Plan Claims Department. Priestas generated billing statements which falsely represented that she and others known to the grand jury received medical services. She submitted 156 false statements on the UPMC system and received payments totaling $184,835.
The law provides for a maximum total sentence of 210 years in prison, a fine of $2,750,000 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 Robert S. Cessar 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.
U.S. Attorney's Office Obtains Two Guilty Pleas from Gang Members with GunsRead the Press Release
DENVER – The U.S. Attorney’s Office, working closely with its law enforcement partners, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced that two unrelated gang members who committed firearm crimes have recently pled guilty to those crimes. Both defendants now await sentencing.
Colton Field, age 32, of Metro Denver, a Crenshaw Mafia Gangster Blood, who was indicted by a federal grand jury in Denver on February 11, 2015 and then pled guilty on June 5, 2015 before U.S. District Court Judge Christine M. Arguello to being a felon in possession of a firearm, is scheduled to be sentenced on October 7, 2015 by Judge Arguello. According to the stipulated facts contained in Field’s plea agreement, on December 11, 2014 an Aurora Police officer heard the stereo of a blue PT Cruiser from 50 feet away. The officer stopped the car based on a noise violation. Field was driving the vehicle.
After pulling the vehicle over, the officer noticed a tattoo and clothing that stated “104,” consistent with the Crenshaw Mafia Gangster Bloods. When asked to provide his identification, Field, gave a false name. After the officer asked him to step out of the car, Field drove off recklessly. Responding officers found an empty PT Cruiser. An inventory search of the vehicle revealed ammunition and a 9 mm firearm. The defendant was then located hiding under a car near where the PT Cruiser was found. Further investigation revealed that the defendant had been handling the firearm, including loading it. The defendant’s girlfriend purchased the firearm at a pawn shop. Field faces not more than 10 years in federal prison, and up to a $250,000 fine. This case was investigated by the Aurora Police Department and the ATF. The defendant is being prosecuted by Assistant U.S. Attorney Beth Gibson.
Jonathan Thomas Fricks, age 34, of Denver, an Oldies 13 gang member, who was indicted by a federal grand jury in Denver on December 16, 2014 and then pled guilty yesterday before U.S. District Court Judge Christine M. Arguello to possession with intent to distribute at least 5 grams of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, is scheduled to be sentenced on September 22, 2015 by Judge Arguello. According to the stipulated facts contained in the plea agreement, between August 14 and 15, 2014, a Colorado Department of Corrections Community Parole Officer (CPO) was investigating the whereabouts of Fricks, who was wanted on a parole violation. The CPO was able to locate the defendant at a Motel 6 in Denver. At the motel the CPO observed the defendant loading items into a car in the parking lot. The defendant and a woman then departed the Motel 6. The CPO called for backup from the Denver Police Fugitive Team and followed the defendant and the woman to Edgewater, Colorado. The defendant was arrested inside a local grocery store. Upon his arrest, officers found $3,755 in cash in the defendant’s pants pocket.
The CPO searched the car in which defendant was riding. Within the car, the CPO unzipped a black and white bag and observed a magazine with ammunition loaded in it and the butt of a gun. Upon discovering the firearm, the CPO called for agents from the ATF to assist with the search. A full search of the car by ATF agents revealed a 9 mm pistol loaded with seventeen rounds; a second magazine containing five rounds of ammunition; three baggies containing 47 grams of methamphetamine; and other drug trafficking related items. The methamphetamine Fricks possessed was at least 95 percent pure. Fricks faces a minimum sentence of 10 years, and up to life in federal prison, and up to a $5,000,000 fine. This case was investigated by the Colorado Department of Corrections, the Denver Police Department, and the ATF. The defendant is being prosecuted by Assistant U.S. Attorney Peter McNeilly.
These cases arise out of the Project Safe Neighborhood initiative, a partnership which includes the Aurora, Denver and Lakewood Police Departments (among others), working in concert with the ATF and the U.S. Attorney’s Office.
Tyshawn Mack and Thomas Parker Sentenced on Drug and Firearms ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Thomas Parker of Brooklyn, New York was sentenced today to 39 months in prison. Chief Judge Christina Reiss also ordered Parker to serve a three-year period of supervised release following his term of imprisonment. Parker also agreed to the forfeiture of $2,495 as proceeds of drug distribution. On February 3, 2015, Parker pled guilty to conspiracy to distribute heroin and cocaine base and conspiracy to possess firearms in furtherance of a drug trafficking crime. On May 28, 2015, Chief Judge Reiss sentenced Tyshawn Mack of Brooklyn, New York to 10 years in prison to be followed by four years of supervised release. Mack had earlier pled guilty to conspiracy to distribute at least 28 grams of cocaine base and 100 grams of heroin.
According to court records, from approximately November 2013 until January 2014, Mack and Parker were involved in the distribution of significant quantities of heroin and cocaine base in the Burlington and Winooski areas. Investigation revealed that drug users were stealing property from area residences to trade for drugs from Mack and Parker. Mack and Parker also traded drugs for firearms and regularly carried firearms in the course of drug dealing. This drug and firearm conspiracy ended on January 24, 2014 when law enforcement arrested Mack, Parker, and other local associates. On that day, a search warrant was executed at a residence on Hickock Street in Burlington where Parker and Mack were known to deal drugs. The residence was rented by Guillaume Etienne, who allowed Mack and Parker to use the apartment to deal drugs. Etienne was federally convicted for his role in this case. Law enforcement seized five firearms and approximately $33,495 in cash from the Hickock Street residence. Simultaneous to the execution of the search warrant on Hickock Street, law enforcement conducted a traffic stop of a truck in which Mack and Evan Blum were riding. The truck had just left the Hickock Street residence and was traveling to the residence of Deirdre Hey, who herself was selling drugs for Mack and Parker. Hey was also federally convicted for her role in this conspiracy. During the course of the traffic stop, Mack got into the driver’s seat of the truck and sped off at high speed through the streets of downtown Winooski. Mack struck several parked cars and eventually came to a stop, after which he fled on foot. Law enforcement apprehended Mack a short time later. A search of Mack incident to his arrest revealed a large amount of cash. A search of the truck yielded two loaded handguns, approximately 100 grams of heroin, 41 grams of ecstasy, 36 grams of cocaine base, and a quantity of marijuana. Blum was also federally convicted for his role in the drug conspiracy.
As a result of these prosecutions, three firearms were forfeited to the United States and three firearms were returned to their lawful owner. The cash seized from the Hickock Street residence was also forfeited.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Vermont State Police, the Winooski Police Department, and the Burlington Police Department. The government was represented by Assistant U.S. Attorneys Nancy Creswell and Kevin J. Doyle. Mack was represented by Mark A. Kaplan, Esq. of Kaplan and Kaplan in Burlington. Michael J. Straub, Esq. of Burlington represented Parker.
Two More Banks Reach Resolutions under Justice Department's Swiss Bank ProgramRead the Press Release
Société Générale Private Banking Will Pay $17.807 Million Penalty and Berner Kantonalbank AG Will Pay $4.619 Million Penalty; Both Continue to Cooperate With Department of Justice
The Department of Justice announced today that two banks, Société Générale Private Banking (Suisse) SA (SGPB-Suisse) and Berner Kantonalbank AG (BEKB), have reached resolutions under the department’s Swiss Bank Program.
“As the agreements reached today confirm, Swiss banks that helped U.S. taxpayers to hide foreign accounts and evade their U.S. tax obligations are providing a detailed account of their cross-border banking activities. The banks are naming officers, employees and others who facilitated this conduct, and providing information that helps us track assets that accountholders moved to other banks and other countries,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division. “Using information gathered from the banks in this program, we have identified and are investigating individuals, both domestic and foreign, who helped U.S. taxpayers dodge their obligations.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
SGPB-Suisse has had a presence in Switzerland since 1926, and had a U.S.-licensed representative office in Miami from the early 1990s until it closed on Aug. 26, 2013. SGPB-Suisse opened and maintained accounts for accountholders who had U.S. tax reporting obligations, and was aware that U.S. taxpayers had a legal duty to report to the Internal Revenue Service (IRS) and pay taxes on all of their income, including income earned in SGPB-Suisse accounts. SGPB-Suisse knew that it was likely that certain U.S. taxpayers who maintained accounts at the bank were not complying with their U.S. income tax obligations.
SGPB-Suisse’s U.S. cross-border banking business aided and assisted some U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets and income the clients held in their accounts from the IRS. SGBP-Suisse used a variety of means to assist U.S. clients in hiding their assets and income, including opening and maintaining accounts for U.S. taxpayers in the name of non-U.S. entities, including sham entities, thereby assisting such U.S. taxpayers in concealing their beneficial ownership of the accounts. Such entities included Panama and British Virgin Island corporations, as well as Liechtenstein foundations. In two instances, an SGPB-Suisse employee acted as a director of entities that had U.S. taxpayers as beneficial owners. In another instance, upon the death of the beneficial owner of an entity, the heirs opened accounts held by sham entities at SGPB-Suisse to receive their shares of the assets from the entity account.
SGPB-Suisse further provided numbered accounts, allowing the accountholder to replace his or her identity with a code name or number on documents sent to the client, and held statements and other mail at its offices in Switzerland, rather than sending them to the U.S. taxpayers in the United States. In addition to these services, SGPB-Suisse:
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Processed requests from U.S. taxpayers for cash or gold withdrawals so as not to trigger any transaction reporting requireents;
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Processed requests from U.S. taxpayers to transfer funds from U.S.-related accounts at SGPB-Suisse to accounts at subsidiaries in Lugano, Switzerland, and the Bahamas;
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Opened accounts for U.S. taxpayers who had left UBS when the department was investigating that bank;
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Processed requests from U.S. taxpayers to transfer assets from accounts being closed to other SGPB-Suisse accounts held by non-U.S. relatives and/or friends; and
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Followed instructions from U.S. beneficial owners to transfer assets to corprate and individual accounts at other banks in Switzerland, Hong Kong, Israel, Lebanon, Liechtenstein and Cyprus.
Throughout its participation in the Swiss Bank Program, SGPB-Suisse committed to full cooperation with the U.S. government. For example, SGPB-Suisse described in detail the structure of its U.S. cross-border business, including providing a list of the names and functions of individuals who structured, operated or supervised the cross-border business at SGPB-Suisse; a summary of U.S.-related accounts by assets under management; written narrative summaries of 98 U.S.-related accounts; and the circumstances surrounding the closure of relevant accounts holding cash or gold. SGPB-Suisse also provided information to make treaty requests to the Swiss competent authority for U.S. client account records.
Since Aug. 1, 2008, SGPB-Suisse held and managed approximately 375 U.S.-related accounts, which included both declared and undeclared accounts, with a peak of assets under management of approximately $660 million. SGPB-Suisse will pay a penalty of $17.807 million.
BEKB was founded in 1834 as Kantonalbank von Bern, the first Swiss cantonal bank. BEKB is based in the Canton of Bern and presently has 73 branches in Switzerland. BEKB knew or had reason to know that it was likely that some U.S. taxpayers who maintained accounts at BEKB were not complying with their U.S. reporting obligations. BEKB opened, serviced and profited from accounts for U.S. clients who were not complying with their income tax obligations.
BEKB provided services that facilitated some U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets in those accounts and related income. These services included opening and maintaining numbered accounts, allowing clients to use code names rather than full account numbers and providing hold mail services. BEKB opened accounts for account holders who exited other Swiss banks and accepted deposits of funds from those banks. BEKB also processed standing orders from U.S. persons to transfer amounts under $10,000 from their U.S.-related accounts. In one instance, a relationship manager asked an accountholder, who was a dual Swiss-U.S. citizen living in the United States, about the Foreign Account Tax Compliance Act (FATCA) and voluntary disclosure. When the accountholder failed to execute FATCA-related documents, BEKB took steps to close the account. In connection with that closing, the accountholder withdrew $70,000 and approximately 500,000 Swiss francs in cash.
BEKB committed to full cooperation with the U.S. government throughout its participation in the Swiss Bank Program. As part of its cooperation, BEKB provided a list of the names and functions of 16 individuals who structured, operated or supervised its cross-border business. These individuals served as the chairman of the board of directors, members of the executive board, regional managers, heads of departments or heads of divisions. BEKB additionally provided information concerning its relationship managers and external asset managers, and it described in detail the structure of its cross-border business with U.S. persons, including narrative descriptions of high-value U.S.-related accounts and U.S.-related accounts held by entities.
Since Aug. 1, 2008, BEKB held approximately 720 U.S.-related accounts, which included both undeclared and not undeclared accounts, with total assets of approximately $176.5 million. BEKB will pay a penalty of $4.619 million.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
“These two resolutions with Société Générale Private Banking (Suisse) SA and Berner Kantonalbank AG represent the ongoing commitment by the IRS and the Department of Justice to ensure that U.S. taxpayers report foreign bank accounts and pay taxes on all income earned from those accounts,” said Deputy Commissioner Douglas O’Donnell of the IRS Large Business & International Division. “We are encouraged by the Justice Department’s program success and look forward to additional information to further our investigations of those who have evaded detection and reporting as well as those who have aided them.”
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“The bank agreements announced today continue to change the landscape in the offshore banking world,” said Chief Richard Weber of IRS-Criminal Investigation. “With each additional agreement, the world where criminals can hide their money is becoming smaller and smaller. Those who circumvent offshore disclosure laws have little room to hide.”
Acting Assistant Attorney General Ciraolo thanked the IRS, in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance, as well as Karen M. Quesnel, who served as counsel on these matters, Senior Litigation Counsel Nanette L. Davis, and Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Two from Minneapolis Sentenced for Sex TraffickingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that David Nance, age 31, and Ashley Crayton, age 26, of Minneapolis, were sentenced by U.S. District Judge Karen E. Schreier for sex trafficking.
Nance pled guilty to the charge of Transportation for Prostitution on March 19, 2015. He was sentenced on June 8, 2015, to 37 months in custody, followed by 3 years of supervised release.
Crayton pled guilty to the charge of Interstate Travel or Transportation in Aid of Racketeering Enterprise on February 6, 2015. She was sentenced on May 21, 2015, to time served and 2 years of supervised release.
In September of 2014, Sioux Falls police responded to a call from the Red Roof Inn regarding a complaint of possible prostitution activity at the hotel. Several men were observed entering and leaving a specific room in the hotel. Further investigation was completed and the two defendants were subsequently arrested for working together to promote prostitution.
Crayton posted prostitution advertisements on Backpage.com, while Nance provided the transportation, paid for the hotel room, and took all of the money from the prostitution victim in this case.
The case was investigated by the Sioux Falls Police Department and Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Nance was immediately turned over to the custody of the U.S. Marshals Service.Tulare Man Sentenced for Weapon and Drug OffensesRead the Press Release
FRESNO, Calif. — Valentin Aispuro, 38, of Tulare, was sentenced today by United States District Judge Anthony W. Ishii to four years and three months in prison for possession with intent to distribute marijuana and possession of a firearm by a felon, United States Attorney Benjamin B. Wagner announced.
According to court documents, in January 2013, Tulare Police Department detectives obtained search warrants for two residences in Tulare believed to be used by Aispuro and co-defendant Imelda Martin for narcotics sales. During the search, officers found four firearms, 130 pounds of marijuana and cash. Aispuro was a convicted felon and not entitled to possess a firearm.
Both defendants pleaded guilty, and on March 3, 2014, Martin was sentenced to one year and eight months in prison for her role in the offense.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Tulare Police Department. Assistant United States Attorney Michael S. Frye prosecuted the case.
Trafficker Sentenced for Methampthetamine ConspiracyRead 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 FELIPE DE JESUS JARAMILLO-ROSAS, 29,of Gwinnett County, Georgia, to 56 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine. JARAMILLO-ROSAS previously pled guilty to this charge on February 10, 2015. On May 13, 2015, a co-defendant, LESLIE FAVIOLA-ALVARADO, pled guilty to the same charge and her sentencing hearing is pending.
The investigation revealed that on June 25, 2013, JARAMILLO-ROSAS and FAVIOLA-ALVARADO took possession of 907 grams of methamphetamine from a source of supply in the Atlanta, Georgia, area and began driving to Johnston County, N.C., to deliver the methamphetamine to traffickers. JARAMILLO-ROSAS and FAVIOLA-ALVARADO arrived in Johnston County on June 26, 2013. However, the traffickers decided not to accept the methamphetamine. As JARAMILLO-ROSAS and FAVIOLA-ALVARADO and FAVIOLA-ALVARADO were attempting to deliver the methamphetamine back to the suppliers, the North Carolina Highway Patrol stopped their car in Graham, N.C. The trooper discovered that the driver, JARAMILLO-ROSAS, did not have a valid driver’s license and smelled a strong odor of marijuana from the car. The trooper asked for and received consent to search the car. Troopers located the methamphetamine in two plastic containers in the back seat of the car during the consent search.
The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office and the North Carolina Highway Patrol. 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.
Southbridge Couple Charged with Manufacturing and Distributing Anabolic SteroidsRead the Press Release
BOSTON –Two Southbridge residents were arrested today for manufacturing and distributing anabolic steroids out of their apartment which doubled as a small laboratory.
Kurt Moisan, 36, and Bobbijo Clark, 42, were each charged with distribution of anabolic steroids, possession with the intent to distribute anabolic steroids, and conspiracy to distribute anabolic steroids. Moisan was additionally charged with manufacturing anabolic steroids. Both were arrested at their Southbridge residence this afternoon.
According to court documents, on three occasions from December 2014 to January 2015, an undercover federal agent purchased anabolic steroids from a website maintained by Moisan and Clark. In February 2105, law enforcement officers executed a search warrant at Moisan and Clark’s Southbridge residence and discovered that they were operating a small laboratory out of their second floor apartment. Agents seized thousands of grams of suspected powdered steroids and hundreds of vials containing suspected liquid steroids. Moisan and Clark admitted to importing raw steroids from China, cooking them into injectable steroid compounds in their apartment, and distributing the steroid compounds through online sales throughout the United States.
The charging statutes provide a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Southbridge Police Chief Daniel Charette, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Greg A. Friedholm of Ortiz’s Worcester Branch Office.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sixteen Defendants Charged in Federal Court & Six Defendants Charged in State CourtRead the Press Release
United States Attorney James L. Santelle announced today that four indictments were unsealed in federal court charging the following 16 defendants with conspiracy to distribute controlled substances, including crack cocaine and cocaine:
Deron P. GILBERT, age 33
Steven T. HARRIS, age 34
James D. ASHFORD, age 23
Terrence C. JAMISON, age 34
Ronald L. PARKER, age 32
Xavier G. POSTON, age 19
Devon K. THOMAS, age 26
Jerrold A. EZELL, age 26
Julius D. GONZALEZ, age 23
Devonte E. GUERCY, age 22
Rodney L. ROWSEY, age 25
Anthony D. WALTON, age 29
Monta T. BEAMON, age 42
Michael W. THOMAS, age 27
Kyeonta L. AMES, age 20
Jemarcus T. WILLIAMS, age 32All of the defendants except Ames, Beamon, Michael Thomas, and Williams, are charged with offenses punishable by up to life imprisonment, with a mandatory minimum sentence of ten years in prison. Beamon and Michael Thomas are charged with offenses punishable by up to forty years in prison, with a mandatory sentence of five years in prison. Ames and Williams are charged with offenses punishable by up to twenty years in prison. The majority of the suspects arrested were members of the HPT/ATK Street Gang, and all of them operated in Milwaukee County.
On June 9, 2015, law enforcement officers arrested four of these defendants. Six were already in custody. Six are still at large, including: Deron Gilbert, Devonte Guercy, Ronald Parker, Devon Thomas, Michael Thomas, and Jemarcus Williams.
In addition, the following defendants were charged by the Milwaukee County District Attorney’s Office with narcotics and firearms offenses: Kareen Hayes, age 23; Sean Barbosa, age 25; Mitchell Anderson, age 21; Darryl Agnew, age 31; Orell Davis, age 32; and Larrenzo Willis, age 35. All six defendants facing state charges reside and operate in Milwaukee. On June 9, 2015, law enforcement officers arrested two of these defendants. One was already in custody. Three are still at large, including: Larrenzo Willis, Mitchell Anderson, and Darrell Agnew. These cases are being prosecuted by Milwaukee County Assistant District Attorney Megan Williamson.
In making today’s announcement, United States Attorney Santelle stated: “These charges, arrests, and seizures are a part of our continuing work to dismantle drug organizations that threaten the safety and security of neighborhoods in the Eastern District of Wisconsin and elsewhere. These efforts reflect the importance of ongoing collaboration between federal, state, and local law enforcement.” Santelle commended all of the law enforcement officers involved in the investigation.
Acknowledging the collaborative efforts necessary to make today’s roundup a success, Milwaukee County District Attorney John Chisholm commented: “As we have in the past, our local, state, and federal public safety organizations continue to work closely together to identify violent offenders and effectively remove them from our community.”
Milwaukee Police Chief Edward A. Flynn provided the following remarks regarding today’s takedown: “Targeting violent gangs is a core element of our multi-pronged strategy to reduce violence in Milwaukee by focusing on high-hazard groups, individuals, and locations.”
Continuing with the theme of cooperation among law enforcement agencies, FBI Special Agent in Charge Robert Shields provided the following comment: “This case is an outstanding example of multi-jurisdictional cooperation, enabled by the FBI’s Southeastern Wisconsin Regional Gang Task Force, which resulted in the disruption of two violent criminal gangs. The citizens of Milwaukee have the right to feel safe and live free of violence from gangs in their neighborhood.”
The case was investigated by the Federal Bureau of Investigation, Milwaukee Police Department, and the Drug Enforcement Administration. The following agencies also assisted with today’s arrests and search warrants: Bureau of Alcohol, Tobacco, Firearms, and Explosives, Milwaukee County District Attorney’s Office – Investigators and Analyst, Oak Creek Police Department, and West Allis Police Department.
These cases are being prosecuted federally by Assistant U.S. Attorneys Brian Resler and Elizabeth Monfils.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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Short North Posse Fugitive Arrested in North CarolinaRead the Press Release
COLUMBUS, Ohio – Andre M. Brown, aka ‘Paco’, 33, of Columbus, Ohio was arrested this morning by FBI agents in Charlotte, North Carolina. Brown had been a fugitive since October 2014 when he was charged with nine counts in a superseding indictment that related to his role in the Short North Posse. With the arrest of Brown, there are no longer any indicted Short North Posse members at large.
Seventeen individuals were originally indicted in the racketeering case in July 2014. All of the defendants were accused of being an organized criminal enterprise known as the Short North Posse.
Brown was one of three more people indicted in October 2014 in connection with a series of violent crimes including 13 previously unsolved murders as well as other attempted murders, drug trafficking, weapons trafficking, extortion and robbery. The addition to the indictment included an additional 23 felonies, including one murder and nine attempted murders.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien, and Columbus Police Chief Kim Jacobs announced the arrest.
The superseding indictment which names Brown alleges that beginning in 2005, members of the enterprise originally referred to themselves solely as the Short North Posse. Later some members began subsets of the Short North Posse referring to themselves as the Cut Throat Committee and later the Homicide Squad. Still within the Short North Posse, Cut Throat Committee and Homicide Squad specialized in murders and robberies of rival gang members, other drug dealers, and targets thought to have large sums of cash or firearms. The Short North Posse also identified themselves nationally with the Crips street gang.
The superseding indictment was a result of a two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, and Franklin County Prosecutor Ron O’Brien’s Office. Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction joined U.S. Attorney Stewart in announcing the original charges.
Brown was charged in the superseding indictment with one count of racketeering conspiracy and three counts of use and discharge of a firearm during and in relation to a crime of violence, each crimes punishable by up to life in prison; one count of attempted possession with intent to distribute cocaine, a crime punishable by up to 20 years in prison; and three counts of possession with intent to distribute and one count of attempted possession with intent to distribute a detectable amount of marijuana, each crimes punishable by up to five years in prison.
Stewart commended Assistant United States Attorneys David DeVillers and Kevin Kelley and Special Assistant United States Attorney Brian Martinez, as well as Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
Charges contained in an indictment are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
Shiloh Woman Pleads Guilty to Making False Claims in Operating Tax Preparation BusinessRead the Press Release
Shanta C. Doss, 35, of Shiloh, Illinois, entered pleas of guilty to fifteen counts of Making False Claims Against the United States through the preparation and submission of fraudulent federal tax returns, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Doss faces a statutory maximum penalty of up to seventy-five years in prison, three years supervised release, a fine and mandatory restitution to the United States. Sentencing is scheduled for September 29, 2015.
Facts revealed in Court showed that from 2011 through 2013, Doss prepared and electronically submitted returns to the Internal Revenue Service for friends and from other referrals. Many of these returns were false in that she electronically filed Schedule "C" forms that inflated or entirely fabricated business income. Doss knew she was required to disclose to the IRS that she was a paid preparer and to identify herself on the Form 1040. Instead, Doss concealed her identity by failing to disclose herself as a paid preparer on the Forms 1040. Doss concealed her identity to evade detection from the IRS because she was operating a tax refund fraud scheme.
The successful prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Sex Offender Sentenced to Prison for Failing to RegisterRead the Press Release
A convicted sex offender who failed to register after moving back to Iowa was sentenced on June 8, 2015, to more than one year in federal prison.
Lester Ealy, 51, from Cedar Rapids, Iowa, received the prison term after a March 31, 2015, guilty plea to one count of failing to register as a sex offender.
At the guilty plea, Ealy admitted to failing to register as a sex offender living in Iowa from June 2014 through February 2015. Ealy was required to register because he had previously been convicted of sexual assault in Nebraska state court. He had also previously been convicted of failing to register as sex offender on four previous occasions in Iowa, Nebraska, and Washington.
Ealy was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Ealy was sentenced to 21 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Ealy 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 Anthony Morfitt and investigated by the United States Marshall’s Service.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-22.
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Seven from Stark County indicted for cocaine conspiracyRead the Press Release
Seven Stark County men were indicted in a 13-count federal indictment for their roles in a conspiracy to distribute cocaine and crack cocaine in the Canton area, law enforcement officials said.
Indicted are: Derrick L. Walton, 40; Gregory N. Burns, 41; Jon A. Herring, Jr., 34; Dwight A. Martin, 25; Michael Patterson, 30; Jermaine L. Woodson, 36, all of Canton, and Robert L. Morrow, 45, of Massillon.
All seven are indicted in count one with conspiracy to possess with the intent to distribute cocaine and cocaine base (crack). Count two charges Morrow with being a felon in possession of ammunition, and counts three through 13 charge Burns, Woodson, Martin, Patterson, and Herring with use of a telecommunication facility to facilitate a drug trafficking offense.
The defendants engaged in a conspiracy between 2012 and the present in which they received cocaine and crack cocaine from James Walton, according to the indictment.
“These defendants are part of a group that packed guns and sold drugs in neighborhoods with impunity,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“These seven individuals will now be joining their co-conspirators behind bars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “Prior to this morning’s efforts, law enforcement had seized over nine kilograms of cocaine, 15 firearms, and cash and assets in excess of $400,000 -- all proceeds of the drug trafficking conducted in this investigation.”
“This case is the result of continued dedication by federal, state and local law enforcement in this community,” said Canton Police Chief Bruce Lawver. “We have focused on the most violent individuals responsible for irreparable harm done to our neighborhoods.”
This case is being prosecuted by Assistant United States Attorney Teresa L. Riley following an investigation by the Stark County Safe Streets Task Force. The task force includes members of the Federal Bureau of Investigation, Canton Police Department, Alliance Police Department, Jackson Township Police Department and the State of Ohio Parole Authority. The Ohio State Highway Patrol also assisted with the investigation.
This indictment is the second in this investigation which has resulted in 21 convictions to date. James Walton was previously indicted and is awaiting trial.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Roma Man Sentenced for Trafficking MarijuanaRead the Press Release
McALLEN, Texas ‐ Jaime Cisneros, 50, of Roma, has been ordered to federal prison following his conviction of possessing with intent to distribute approximately 434 kilograms of marijuana, announced U.S. Attorney Kenneth Magidson. Saenz pleaded guilty Feb. 2, 2015.
Today, U.S. District Judge Marina Garcia Marmolejo, handed Cisneros a 155-month sentence to be immediately followed by four years of supervised release. At the hearing, the court considered Cisneros’s 2003 drug trafficking conviction out of Corpus Christi as well as two other instances in which Cisneros was involved in the trafficking of large quantities of marijuana. Judge Marmolejo further increased Cisneros’s sentence by finding he was a manager or supervisor of the extensive drug trafficking organization.
On March 19, 2014, Cisneros directed co-conspirators to conceal 43 bundles of marijuana in a brushy area in Fronton. Law enforcement approached the area and were able to seize 43 bundles of marijuana weighing approximately 434 kilograms.
Cisneros will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by Homeland Security Investigations and Border Patrol. Assistant U.S. Attorney Kristen Rees prosecuted the case.
Richmond Resident Detained on Stalking ChargesRead the Press Release
HOUSTON – A federal judge has ordered that Heriberto Latigo, 42, of Richmond, be remanded to custody pending further criminal proceedings on allegations of stalking, announced U.S. Attorney Kenneth Magidson.
In the detention order, publicly available today, U.S. Magistrate Judge Nancy Johnson found Latigo’s “alleged conduct to be so egregious and threatening to the victim, that detention is warranted.”
A grand jury indicted Latigo for one count of stalking on May 28, 2015, and arrested two days later. The detention hearing was held Friday, June 5, 2015.
At the hearing, Judge Johnson heard evidence about Latigo’s alleged systematic torture of the victim from March 2014 to April 2015, during which time he sent her horrific images and threatening email messages, according to testimony.
Latigo allegedly had nude photographs of the victim and threatened to distribute them if she did not comply with his sexual demands. Testimony revealed that she refused and he then allegedly sent the images to third parties including the victim’s sister. He allegedly claimed they were his photographs and that he could do whatever he wanted with them. According to the testimony, Latigo also created a Facebook page under “Magdalena Aborted” purporting to be the aborted fetus of the victim. Latigo then allegedly sent the victim an email stating, “Your abortion video will now be posted you whore.”
Testimony further revealed that Latigo repeatedly told the victim that his online harassment was perfectly legal and her attempt at seeking a civil remedy would be futile. According to allegations discussed in court, the relationship devolved into physical altercations, to include an alleged rape in September 2014 when Latigo came to the victim’s home. The victim reported to authorities that Latigo told her no one would believe her if she called the police.
Testimony further revealed that the victim’s passport was allegedly found in Latigo’s home. The victim believed she lost her passport and was unaware that Latigo had it in his possession, according to court testimony.
The government also informed the court that Latigo is in the midst of a divorce and custody battle and has taken his minor children out of the country without their mother’s permission. Latigo’s mother is a citizen of Mexico and owns property there, according to testimony.
Judge Johnson considered all of the evidence and testimony and ultimately found there to be no condition or combination of conditions that will reasonably assure Latigo’s appearance in court. She further noted he presents a danger to the victim.
If convicted, Latigo faces up to five years in federal prison and a possible $250,000 fine.
The allegations against Latigo are the result of an investigation conducted by the FBI. Assistant U.S. Attorney Sherri Zack is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Rexburg Man Found Guilty of Illegally Storing and Disposing of Hazardous WasteRead the Press Release
POCATELLO – Max Spatig, 73, of Rexburg, Idaho, the owner of MS Enterprises, was convicted yesterday, following a two-week jury trial in federal court in Pocatello, of the felony of knowingly storing and disposing of hazardous waste on a property off the Archer-Lyman Highway near Rexburg, U.S. Attorney Wendy J. Olson announced.
On July 8, 2010, a total of 3,478 containers of hazardous waste materials were found on the property outside of Rexburg. Many of the containers were labeled as containing hazardous materials and many were corroded. They had been left outdoors for years. Samples taken from some of the containers confirmed that the contents were hazardous waste due to ignitability and corrosivity characteristics. Ignitable materials catch fire at relatively low temperatures and present a dangerous fire hazard. Corrosive materials cause other materials to dissolve on contact. The contents of the containers were shipped to a hazardous waste disposal facility, incurring a cost to the federal government of $498,652. Neither MS Enterprises nor Spatig had any permits from the Environmental Protection Agency (EPA) or the Idaho Department of Environmental Quality (DEQ) that would have covered the operation of a hazardous waste dump.
Spatig had engaged in similar conduct before. In 2005, the State of Idaho cleaned up hazardous waste from another property belonging to Spatig near Menan in Jefferson County, Idaho. The cost of that cleanup was $188,000. Previous to 2005, Spatig engaged in similar conduct in Kaysville, Utah.
Spatig’s sentencing is scheduled for August 24, 2015, before visiting Senior U.S. District Judge Wiley Daniel, of Colorado, who presided over the trial.
“Illegally storing hazardous materials puts society at risk,” said Olson. “We are deeply concerned about the threat to public safety and to our environment. Investigation and prosecution of these cases will continue to be a priority for our state and federal partners and for this office.”
“For years, the defendant knowingly stored hazardous waste without regard to the dangers it posed to the public and to the environment,” said Lance Ehrig, Acting Special Agent in Charge of EPA’s criminal enforcement program for Idaho. “When EPA’s emergency response team first arrived on the defendant’s property, they found thousands of containers filled with corrosive and ignitable hazardous waste. The situation put human health at serious risk and cleanup cost the government hundreds of thousands of dollars. Today's guilty verdict by a jury demonstrates that the American people demand that if business owners treat our nation's environmental laws with contempt, they be held accountable."
The conviction for storing and disposing of hazardous waste without a permit carries a penalty up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. Because of multiple violations of court-orders prior to trial and offenses committed while on pre-trial release, Spatig has been held in custody since September 11, 2014.
The case was the result of a joint investigation of the Environmental Protection Agency, the Idaho Department of Environmental Quality, and the Madison County Sheriff’s office. It was prosecuted jointly by the U.S. Attorney’s Office and the Environmental Crimes Section of the U.S. Department of Justice.
Randolph County man convicted for role in manufacturing methamphetamineRead the Press Release
ELKINS, WEST VIRGINIA – Lee Willard Young, Jr., 34, of Beverly, West Virginia, was convicted in federal court today for his role in manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
In April 2014, Young was discovered Randolph County, West Virginia in possession of medication containing pseudoephedrine, an ingredient commonly used to produce methamphetamine.
Kimble pled guilty today to one count of “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine.” He faces up to 20 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 Sarah Montoro prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge John S. Kaull presided.
Previously Deported Mexican National Sentenced to 80 Months in Federal Prison for Illegal ReentryRead the Press Release
ALBUQUERQUE – A previously deported felon from Mexico was sentenced today in federal court in Albuquerque, N.M., to 80 months in federal prison for his conviction for unlawfully reentering the United States. He will be deported after completing his prison sentence.
Rene Gonzalez-Chavez, 33, of Chihuahua, Mexico, was charged on Sept. 24, 2014, in a criminal complaint with illegally reentering the United States after having been convicted of an aggravated felony. Gonzalez-Chavez had previously been deported from the United States on April 28, 2010, after he was convicted in April 2006, of multiple aggravated felonies including aggravated assault with a deadly weapon on a peace officer, attempt to commit a felony, aggravated burglary with a deadly weapon, conspiracy to commit an aggravated burglary, and aggravated assault against a household member with a deadly weapon and resisting an officer.
Gonzalez-Chavez was subsequently indicted on Dec. 3, 2014, and charged with unlawful re-entry into the United States. The offense took place in Bernalillo County, N.M.
On Jan. 22, 2015, Gonzalez-Chavez pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the Albuquerque Police Department. Assistant U.S. Attorney Lynn Wei-Yu Wang is prosecuting this case 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.
Peoria Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
Peoria, Ill. – Seth Morris, 25, of the 1000 block of N. Glenwood, Peoria, Ill., entered a plea of guilty yesterday, in federal court, to one count of sexual exploitation of a minor, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Sentencing has been scheduled for Oct. 14, 2015, before U.S. District Judge Joe Billy McDade.
During the plea hearing, on June 8, Morris admitted that in mid to late 2014, he took sexually explicit photographs of himself with a young child. Morris then used his cell phone to send the images to a 14-year-old girl on the social networking service, MeetMe, and requested that the girl send him similar photos of a young child that she knew.
On Dec. 26, 2014, agents of the U.S. Secret Service and Washington Police Department executed a search warrant at Morris’s home, and Morris’s cell phone was seized. Morris admitted that the phone was used to chat with a female under the age of 18 through MeetMe and that he had sent her sexually explicit images of a minor in an effort to receive additional images of child pornography in exchange.
The statutory maximum penalty for the offense of sexual exploitation of a minor is up to 30 years in prison, and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney Ron Hanna. The charge is the result of an investigation conducted by the U.S. Secret Service and a Special Task Force Officer from the Washington Police Department.
Morris has remained in the custody of the U.S. Marshals Service since his arrest in December 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Pennsylvania Man Sentenced for Illicit Sexual Conduct Charges, Receiving Child PornographyRead the Press Release
COLUMBUS – Jason C. Kozlowski, 32, of Glen Rock, Pennsylvania, was sentenced in U.S. District Court to 12 years in prison and 20 years supervised release for traveling interstate with the intent to engage in illicit sexual conduct and receiving child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Grove City Police Chief Steve Robinette, Pickaway County Sheriff Robert B. Radcliff, and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, on October 10, 2014, Grove City police officers observed Kozlowski in his vehicle behind a Target store nude from the waist down with a 15-year-old female.
Upon interviewing Kozlowski and the minor female, investigators discovered the two had been communicating since approximately March of 2014 by Facebook, e-mails, text messages and telephone calls. Text messages found on the phones of Kozlowski and the minor female revealed that Kozlowski had sent the girl sexually explicit messages. Kozlowski was aware of the female’s age and the laws in the state of Ohio regarding consent.
Kozlowski told law enforcement officials the 15-year-old was going to get a letter from her parents giving him permission to “be with” with the girl. The defendant admitted to driving from Pennsylvania to Ohio to pick up the female and explained they went to dinner, shopping, and then parked behind the Target store and engaged in sex acts.
Investigators discovered nude photographs of both the defendant and the victim had been exchanged vita text. They also discovered pornographic images of a different, 13-year-old female on Kozlowski’s computer.
Kozlowski pleaded guilty to traveling interstate with the intent to engage in illicit sexual conduct and receiving child pornography in February 2015.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office Upper Arlington Police Department
Grove City Police Department Columbus Police Department
Grandview Heights Police Department Whitehall Police Department
Hilliard Police Department Westerville Police Department
Homeland Security Investigations U.S. Secret Service
Ohio ICAC Franklin County Prosecutor's OfficeThis case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the cooperative investigation by law enforcement, as well as Assistant United States Attorneys Heather Hill and Jessica Kim, who represented the United States in this case.
Oregon Felon Sentenced to 10 Years in Federal PrisonRead the Press Release
EUGENE, Ore. – Christopher Shawn Kanatzar, 28, Springfield, Oregon, appeared before U. S. District Court Chief Judge Ann Aiken in Eugene today and was sentenced to ten years in prison. Earlier this year, Kanatzar pled guilty to being a felon in possession of a 9 mm pistol found by Springfield police in a stolen car following a high speed chase. Kanatzar and two police officers sustained injuries when he resisted arrest after the pursuit ended.
In March 2013, Kanatzar also pled guilty in an Oregon court to robbery in the first degree with a firearm. Kanatzar admitted robbing a person of their methamphetamine at gunpoint. Kanatzar is pending sentencing for that crime.
Chief Judge Aiken sentenced Kanatzar to the maximum sentence of ten years because he possessed the pistol after having been previously convicted of unlawfully using and possessing firearms, first degree burglary and first degree theft. According to court documents and statements made in court, Kanatzar’s state sentences will be served concurrently while he is in federal prison.
Kanatzar’s guilty plea, admissions and 10-year prison sentence were part of a global plea agreement with the U. S. Attorney’s Office for the District of Oregon and the Lane County District Attorney’s Office.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms and the Springfield Police Department. The case was prosecuted by Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Lane County Deputy District Attorney Erik Hasselman.
North Miami Resident Pleads Guilty to Possession of Access DevicesRead the Press Release
Keven Aime, 21, of North Miami, Florida, pled guilty yesterday to one count of possession of fifteen or more access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3) and 2.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
According to the factual proffer in support of the guilty plea, on August 24, 2012, Aime was taken into custody for driving with a suspended license and possession of marijuana. A search of the car revealed a notebook containing the personal identifying information of approximately forty-five other people, including names, occupations, dates of birth, and social security numbers.
The personal identifying information in the notebook corresponded to victims of tax refund fraud. Twenty victims had fraudulent tax returns filed in their names in 2011, and thirty-seven victims had fraudulent tax returns filed in their names in 2012. The total loss to the Internal Revenue Service was $109,628.
Aime is scheduled to be sentenced on August 26, 2015, at 1:30 p.m., before U.S. District Judge Jose E. Martinez.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
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.
North Brookfield Man Charged with Child Enticement OffensesRead the Press Release
BOSTON – A North Brookfield man was charged in U.S. District Court in Worcester yesterday with child pornography.
Matthew Clem, 30, was charged by complaint with production of child pornography, enticement of a minor to engage in unlawful sexual conduct, and receipt of child pornography.
As alleged in the charging documents, beginning in October 2014, law enforcement officers learned that an individual who identified himself as “Matt” on “Kik Messenger,” (Kik) an instant messaging app, had engaged in sexualized chats with a 15-year-old girl. Furthermore, “Matt” had solicited and received unclothed images from the minor victim and sent images depicting his genitals. After further investigation, law enforcement officers determined that the Internet IP address associated with the Kik account belonged to Clem. In March 2015, a search warrant was executed at Clem’s home. According to the charging documents, Clem was interviewed by law enforcement officers following the execution of the search warrant and admitted to utilizing numerous Internet-based messaging systems to solicit numerous females as young as 14-years-old and acknowledged receiving numerous pornographic images from those females.
Based upon Clem’s admissions, a second minor victim was identified. This victim began communicating with Clem in 2012 when she was 14-years-old. The affidavit alleges that this second victim engaged in sexualized video chats at Clem’s request and that Clem engaged in sexual intercourse when this victim was under the age of 16.
The charge of producing child pornography provides a mandatory minimum sentence of 15 years and no greater than a lifetime in prison, five years of supervised release, and a fine of $250,000. The charge of enticing a minor provides a mandatory minimum sentence of 10 years and no greater than a lifetime in prison, five years of supervised release, and a fine of $250,000. The charge of receipt of child pornography provides a mandatory minimum sentence of five years and no greater than 20 years in prison, a minimum of five years and no greater than a lifetime of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Worcester County District Attorney Joseph D. Early, Jr.; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and North Brookfield Police Chief Aram Thomasian, Jr., made the announcement. The case is being prosecuted by Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Nine Individuals Indicted in June 2015 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the June 2015 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
CRYSTAL DEANN AIRINGTON, age 40, of Durant, Oklahoma
THEFT BY OFFICERS OR EMPLOYEES OF GAMING ESTABLISHMENT ON INDIAN LANDS
The Indictment alleges that from in or about January, 2012 to on or about December 15, 2012, in the Eastern District of Oklahoma, CRYSTAL DEANN AIRINGTON, defendant herein, while an employee of the Choctaw Nation Casino and Resort, did embezzle, abstract, purloin, willfully misapply, and take and carry away in excess of $1,000.00 of moneys belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation in Indian Country, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charge arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Sections 1168(b) and 2, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Edward Snow
JIMMY LEWIS PERKINS, age 50, of Idabel, Oklahoma
FAILURE TO REGISTER AS SEX OFFENDER
The Indictment alleges that from a date uncertain in or about 2013, the exact date being unknown to the Grand Jury, until on or about March 12, 2015, in the Eastern District of Oklahoma, and elsewhere, JIMMY LEWIS PERKINS, defendant herein, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Oklahoma, in McCurtain County, on or about September 8, 2004, for the offense of Lewd Molestation, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charge arose from an investigation by the United States Marshal Service. The charge is in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Edward Snow
STANLEY RAY MIXON, age 39, of Haworth, Oklahoma
USE OF TELEPHONE TO MAKE BOMB THREAT
The Indictment alleges that on or about April 2, 2015, in the Eastern District of Oklahoma, the Defendant, STANLEY RAY MIXON, through use of a telephone willfully made a threat to unlawfully damage and destroy a building, to-wit: the United States Post Office in Idabel, Oklahoma, by means of an explosive, in and affecting interstate commerce.
The charge arose from an investigation by the McCurtain County Sheriff’s Department and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Section 844(e), punishable by up to 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Rob Wallace.
STEVEN KYLE DUDLEY, age 21, of Calera, Oklahoma
THEFT BY OFFICERS OR EMPLOYEES OF GAMING ESTABLISHMENT ON INDIAN LANDS
The Indictment alleges that on or about July 8, 2013 until July 21, 2013, in the Eastern District of Oklahoma, STEVEN KYLE DUDLEY, defendant herein, while an employee of the Choctaw Nation Casino and Resort, did embezzle, abstract, purloin, willfully misapply, and take and carry away in excess of $1,000.00 of moneys belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation in Indian Country, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charge arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Sections 1168(b) and 2, punishable by not more than 20 years imprisonment, a fine of up to $250,000.00 or both.
Assistant United States Attorney Edward Snow
CHELBI GEORGE, age 42, of Tulsa, Oklahoma
POSSESSION OF A COUNTERFEIT OBLIGATION
The Indictment alleges that on or about May 5, 2015, in the Eastern District of Oklahoma, the Defendant, CHELBI GEORGE, did with intent to defraud, possess counterfeit obligations of the United States. The charge arose from an investigation by the Muskogee Police Department and the United States Secret Service.
The charges are in violation of Title 18, United States Code, Section 472, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Melody Nelson
KEVIN BERNARD GREEN, age 35, of Muskogee, Oklahoma
ANDREANA LYNN HILL, age 37, of Muskogee, Oklahoma
ELIJAH ALFRED MAYES, JR., age 35, of Muskogee, Oklahoma
JAZZ ELLINGTON PIERCE, age 27, of Muskogee, Oklahoma
DRUG CONSPIRACY
USE OF A COMMUNICATION DEVICE IN FURTHERANCE OF DRUG TRAFFICKING
DRUG FORFEITUREThe Indictment alleges that beginning in or about 2005, the exact date being unknown to the Grand Jury, and continuing until on or about May 8, 2015, within the Eastern District of Oklahoma and elsewhere, the defendants did knowingly and intentionally conspire, confederate and agree with each other, and with others known and unknown to the Grand Jury, to possess with intent to distribute Schedule II controlled substances and did knowingly and intentionally, and unlawfully used a communication facility, that is: telephones (cellular or otherwise), in committing, causing and facilitating acts constituting felonies under Title 21, United States Code, Sections 841 and 846, in that the defendants used the telephones to discuss various matters concerning conspiracy, distribution of cocaine and cocaine base and possession with intent to distribute cocaine and cocaine base, a Schedule II controlled substance. A Drug Forfeiture charge is also included in the Indictment.
The charges are a result of an investigation by the Muskogee Police Department and the Oklahoma Bureau of Narcotics. The charges are in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years imprisonment; Title 21, United States Code, Section 843(b), punishable by not more than 4 years imprisonment and Title 21, United States Code, Section 853.
Assistant United States Attorney Shannon Henson.
New Hampshire Man Pleads Guilty to Social Security FraudRead the Press Release
CONCORD, N.H. –Craig Luksza, 34, of Chichester, pleaded guilty today in United States District Court for the District of New Hampshire to Social Security Fraud, announced Acting United States Attorney Donald Feith.
In July 2010, Luksza began receiving Social Security disability benefits. Shortly after he applied for benefits in December 2009, however, Luksza returned to work full-time for a construction company. Luksza’s income from this job would have rendered him ineligible to receive disability benefits. Luksza did not report this work activity to the Social Security Administration (SSA) and, in fact, in December 2013, he falsely told SSA that he had not worked since December 2008. In July 2014, Luksza admitted to investigators that he concealed his work activity and income from SSA. As a result of his concealment, Luksza received disability benefits that he would not have received if Social Security had been aware of his actual work activity and income. The government alleges that Luksza fraudulently received $71,180.50 in disability benefits.
“Program benefits fraud is a high enforcement priority for this office and one we are uniquely positioned to prosecute,” Acting U.S. Attorney Feith said. “Many citizens rely on the assistance provided by benefit programs such as Social Security disability benefits to meet their daily needs. Those who cheat the system jeopardize the financial security of their fellow citizens who are legitimately receiving such benefits, and threaten the fiscal stability of the entire program. We will work hard to identify the cheaters, prosecute them, and make sure that they are ordered to repay the benefits they received through fraud.”
Luksza is facing a maximum sentence of five years in prison and is scheduled to be sentenced on September 29, 2015. He was released on conditions pending sentencing.
The case was investigated by the Social Security Administration’s Office of the Inspector General and prosecuted by Special Assistant United States Attorney Karen Burzycki.
New Exhibit Now Open at Crime Museum Takes on Wildlife TraffickingRead the Press Release
The Crime Museum announces the wildlife trafficking exhibit is now officially open. The exhibit, titled “Ivory, Tortoise Shell & Fur: The Ugly Truth of Wildlife Trafficking,” was unveiled to a large group made up of celebrities, government officials, and journalists who came together to support this important cause and see and learn more about wildlife trafficking. Following the unveiling, the exhibit is now open to the public, who are invited to attend and learn about the horrors of the wildlife trafficking industry that plagues the world.
“We are excited to be bringing this information to the masses,” states Janine Vaccarello, chief operating officer of the Crime Museum. “This is truly a big step in the right direction when it comes to curbing the illegal wildlife trafficking industry. The more the public learns about it, the more empowered they will be to help end it.”
Wildlife trafficking is an issue that President Obama has spoken about, calling it a security issue, as well as celebrities, such as Russell Simmons, who are speaking out about the atrocities that are decimating particular animal populations around the world.
“Interpol and its Environmental Security section are committed to the protection of wildlife, natural resources, and biodiversity around the world,” stated Interpol Washington Director Shawn A. Bray. “Interpol and its law enforcement partners in all 190 member countries, including Interpol Washington, will continue building partnerships and awareness of environmental crime, as seen here tonight with the opening of this exhibit. Together, we will ensure we win the fight against transnational environmental crime.”
Many people are unaware of how critical the situation has become, yet the statistics are alarming. It’s estimated that 97 percent of the world’s tigers have been lost in the last century, 76 percent of elephants have been lost during the last 13 years, and over 1,200 rhinoceros were killed last year alone. These animal populations have been depleted to supply black market demand for jewelry, souvenirs, and natural medicines and status symbols such as shark fin soup.
"The exhibit shows the horrible suffering inflicted on individual animals for illegal and unnecessary trinkets," says Beth Allgood, US Campaigns Director at IFAW. "Raising awareness is a critical step in making the world safer for wildlife."
“It could not have been a better event,” shares Dr. Jennifer Sevin, Ph.D., president of Youth Environmental Programs, Inc. “There were excellent speakers, a great venue, and the opening of an important exhibit on World Environment Day. As many of the speakers at the opening mentioned, the Crime Museum is an excellent venue to bring awareness of wildlife trafficking to the public.”
The Wildlife Trafficking exhibit will be at the Crime Museum from June 2015 through February 2016, giving visitors an opportunity to see if they are contributing to the problem, and how they can help. The Crime Museum also offers a variety of other temporary and traveling exhibits, summer camp programs, walking tours, educational hands-on exhibits, and more. For more information to purchase tickets, visit their site at www.crimemuseum.org. To get involved, use and search for #ProtectOurWildlife and #SavetheElephants, or buy an awareness t-shirt, with proceeds going to the Youth Environmental Programs.
This exhibit is made possible by Freeland Foundation, International Fund for Animal Welfare, INTERPOL, Kashmir World Foundation, U.S. Department of State, U.S. Fish and Wildlife Service, WildAid, Wildlife Trust of India and Youth Environmental Programs.
About the Crime Museum
Crime Museum is located in Washington D.C. The mission is to provide guests of all ages with memorable insight into the issues of crime, crime fighting, and the consequences of committing a crime in America, through an interactive, entertaining, and educational experience. The museum offers walking tours, summer camps, galleries, a crime library, temporary and traveling exhibits, and more. For additional information, visit www.crimemuseum.org or follow the museum on Facebook and Twitter.Massachusetts Man Pleads Guilty to Firearms ChargesRead the Press Release
CONCORD, N.H. – Jose M. Camara, Jr., 29, of Haverhill, Massachusetts, pleaded guilty in United States District Court for the District of New Hampshire to conspiracy to make a false statement during the acquisition of a firearm and making false statements during the acquisition of firearms, announced Acting United States Attorney Donald Feith.
Beginning in August 2014, agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Boston were involved in an investigation of the illegal purchase and sale of firearms. During the investigation, ATF agents utilized an informant (CI-1) to purchase firearms from Jason Martinez. Martinez has pleaded guilty to conspiracy to make a false statement during the acquisition of a firearm and is awaiting sentencing.
Martinez and others solicited Camara to purchase firearms because Camara possessed a New Hampshire identification and could provide that identification to the federal firearms licensee making the sale. Camara agreed to purchase the firearms for Martinez and others. From October 31, 2014 through November 8, 2014, on three separate occasions, Camara purchased eight firearms in New Hampshire. On November 26, 2014, Camara attempted to purchase three additional firearms but was denied because ATF was alerted to the purchase. During each of the firearm purchases, Camara falsely claimed that he was the actual purchaser of the firearms when in reality he was purchasing the firearms for Martinez and others.
“The illegal purchase of firearms thwarts the regulatory system that was put in place to ensure that firearms do not end up in the hands of those individuals prohibited from possessing firearms” stated Acting United States Attorney Donald Feith. “This case demonstrates this office’s commitment to work with law enforcement to investigate and to prosecute those who facilitate the illegal possession of firearms. If you lie and buy, you will be prosecuted.”
Camara faces a maximum sentence of ten years imprisonment. Camara is scheduled to be sentenced on September 22, 2015. Camara was detained pending sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Marion Couple Pleads Guilty to Enticement of a MinorRead the Press Release
A husband and wife who enticed a minor to engage in criminal sexual activity pled guilty in federal court in Cedar Rapids.
Michael Darling, age 20, and Jennifer Darling, age 27, both of Marion, Iowa, were convicted of one count of enticement of a minor.
At a plea hearing on June 4, 2015, Michael Darling admitted that, between January and March 2015, he persuaded, induced, or enticed a 15-year-old girl to engage in sexual activity. At a plea hearing on June 8, 2015, Jennifer Darling admitted that, during the same time period, she persuaded, induced, or enticed the same girl to engage in sexual activity.
Sentencings before United States District Court Chief Judge Linda R. Reade will be set after presentence reports are prepared. Jennifer Darling was taken into custody of the United States Marshal after her guilty plea; both she and Michael Darling will remain in custody pending sentencing. Each defendant faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Jones County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-39.
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Man sentenced for extortion scheme at arch mineRead the Press Release
MAN SENTENCED FOR EXTORTION SCHEME AT ARCH MINE
Charleston, W.Va. -- Former Mountain Laurel Mining Complex General Manager David E. Runyon, 45, of Delbarton, Mingo County, West Virginia, was sentenced today to 41 months in federal prison and ordered to pay a $15,000 fine for extortion and tax evasion, announced United States Attorney Booth Goodwin.
Runyon admitted that as general manager of the mining complex, he participated in and benefitted from a number of extortion schemes where he and other Arch Coal employees were paid cash kickbacks from complicit Mountain Laurel vendors in exchange for the vendors’ continued business at Mountain Laurel. The cash kickbacks to Arch Coal employees totaled more than 1.8 million dollars between 2006 through 2013. These kickbacks included:
- The Rebuild Kickback Scheme, where Runyon and others received kickbacks from companies engaged in rebuilding mine equipment at Mountain Laurel. These companies included Tri-State Mine Service, Inc., owned by Scott Ellis and later joined by Stephen Herndon after he left employment at Arch Coal, Carter Sales and Service and Apex Mining Construction and Repair, Inc, owned by Donald Carter. Ellis, Carter, and later Herndon understood that they would no longer be vendors for Mountain Laurel if they stopped paying kickbacks.
- The Miner/Bolter Repair Kickback Scheme, where Runyon and others received kickbacks from Ronald Barnette, who owned Mining Repair Specialist, Inc. (“MRS”). MRS performed rebuild and repair work on mining equipment at Mountain Laurel. Barnette understood if he did not pay the kickbacks, MRS would no longer get rebuild work at Mountain Laurel.
- The Construction Work Kickback Scheme, where Runyon received kickbacks from Alvis Porter, who operated Quality Oil, Inc. d/b/a Southern Construction of Logan. Porter’s company performed a variety of construction services at Mountain Laurel, and Porter paid the kickbacks to keep the Mountain Laurel work.
- The Contract Labor Kickback Scheme, where Runyon received kickbacks from David Herndon. David Herndon owned and operated MAC Mine Service, Inc., which provided contract labor at Mountain Laurel. David Herndon paid the kickbacks because he believed that he would lose the business at Mountain Laurel if the kickbacks were not paid.
Runyon admitted that he received approximately $1 million through these kickback schemes. He was ordered to pay restitution in the amount of $1 million to Arch Coal and $325,485 to the Internal Revenue Service.
“The payment of kickbacks is nothing more than negotiated bribery. Kickbacks undermine fair and legitimate business practices, eliminate competition and inevitably impact costs passed along to consumers. These are not victimless crimes, because in the end we all lose when the free market is compromised by such corruption,” said United States Attorney Booth Goodwin.
Today’s charge stems from an investigation being conducted by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations, United States Postal Inspection Service, and the West Virginia State Police. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution.
Man Sentenced in Bank Robbery SpreeRead the Press Release
BOSTON – A Boston area man was sentenced yesterday for robbing three banks in June 2014 and stealing over $18,000.
Edward Stone, 26, was sentenced by U.S. District Court Judge Denise J. Casper to 80 months in prison, three years of supervised release, and restitution of $18,257. In March 2015, Stone pleaded guilty to three counts of bank robbery.
On June 7, 2014, Stone walked into a TD Bank in Braintree holding a notebook and approached the bank teller. He showed the teller a written note demanding money in “Big Bills” [sic]. While speaking to the teller, he also threatened to “blow [her] head off” if she did not follow his instructions. Stone left the bank with $7,363 moments after he entered.
On June 12, 2014, Stone entered a TD Bank in Hingham at 11:24 a.m. Once again, he presented a note demanding money and told the teller, “This is a robbery. Give me the money.” Stone stole $3,796 from the bank.
On June 20, 2014, Stone robbed the TD Bank in Braintree for the second time. Stone approached the same teller he victimized on June 7 and once again demanded money. Stone left the bank forty seconds after entering with $7,098 in cash.
Following each robbery, the tellers and other witnesses identified Stone from a photo array.
Police arrested him on June 25, 2014. After his arrest, Stone gave a videotaped confession in which he admitted to all three robberies.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief Russell Jenkins of the Braintree Police Department; and Chief Michael Peraino of the Hingham Police Department, made the announcement. This case was prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
Man Indicted for Drug Conspiracy, Illegal Firearm Possession and for Murder-For-HireRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a four count indictment charging Guarionex Rivera, 27, of Clifton Springs, NY, with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, possession with intent to distribute five hundred grams or more of cocaine, possession of a firearm in furtherance of the drug crime, and using interstate communications facilities with intent to commit a murder for hire.
Assistant U.S. Attorney Everardo A. Rodriguez, who is handling the case, stated that the indictment is the result of a lengthy investigation of the defendant and others for cocaine distribution. During the course of the investigation, the Drug Enforcement Administration used a confidential informant to purchase 62 grams of cocaine from Rivera. The investigation culminated on May 22, 2015 when the defendant was arrested by law enforcement officers as they were preparing to drive to sell the informant a larger quantity of cocaine. At the time of their arrest, Rivera and another individual had in their possession four kilograms of cocaine, a loaded .45 caliber handgun, approximately $18,790 in cash, an electronic money counter and other drug paraphernalia.
The indictment further charges that, also in May, the defendant used cell phones and the internet in an effort to hire someone to assist in murdering a man for stealing hundreds of thousands of dollars in drug proceeds from Rivera. The defendant contacted the informant, among others, for assistance in finding and killing the thief in exchange for $40,000. The informant put Rivera in touch with an undercover officer who played the role of someone willing to help the defendant further his scheme.
The indictment also seeks forfeiture of two guns seized during the investigation, the $18,790 in cash and a BMW automobile which Rivera used while engaging in the charged criminal activity.
The indictment is the result of an investigation headed by the U.S. Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, with assistance from the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge Boston Division, the United States Marshal’s Service, under the Direction of U.S. Marshal Charles Salina, the Ontario County Sheriff’s Office, under the direction of Sheriff Philip Povero, the Macedon Police Department under the direction of Chief John Colella, and the Greater Rochester Area Narcotics Enforcement Team.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Madison County Man Gets 140 Years in Prison for Producing, Possessing and Distributing Child PornographyRead the Press Release
HUNTSVILLE – A federal judge today sentenced a Madison County man to 140 years in prison on multiple charges of producing child pornography, some of it taken with cameras he hid in the bathrooms of three Huntsville-area businesses, announced U.S. Attorney Joyce White Vance, Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr., Alabama Law Enforcement Agency Sec. Spencer Collier and Etowah County Sheriff Todd Entrekin.
U.S. District Judge Madeline H. Haikala sentenced JEREMY JOSEPH NELSON, 42, for producing child pornography between 2012 and 2014, possessing child pornography depicting children under age 12, and distributing child pornography. Nelson pleaded guilty to the charges in February.
A sentencing document filed by the government on Monday said Nelson possessed more than 1 million images of child pornography and traded thousands of those images with other sex offenders. The document also said that Nelson has exploited hundreds of children in Alabama, and that he "produced his own images of child pornography depicting children in Alabama for his own sexual gratification and for trading."
"This defendant called himself a monster and should spend the rest of his life in prison," the government document said.
In Nelson's guilty plea, he acknowledged that for several years he used hidden cameras surreptitiously to record underage girls in the bathroom of his residence. He also acknowledged that, while working as a janitor, he had hidden cameras in the employee bathroom of a Huntsville television news studio, in the customer bathroom of a Cadillac dealership, and in the bathroom and changing rooms of a dance studio.
Nelson pleaded guilty to four counts of using or causing a minor to engage in sexually explicit conduct so he could record the conduct. One of those counts stated that the crime took place at a Huntsville dance studio. Nelson also pleaded guilty to possessing child pornography on computer, computer disk or videotape, and to distributing the pornography over the Internet.
The Department of Homeland Security and the Alabama State Bureau of Investigation investigated the case, which Assistant U.S. Attorneys Jacquelyn Hutzell and Daniel Fortune are prosecuting.
Las Cruces Resident Pleads Guilty to Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Christopher J. Cleveland, 35, a resident of Las Cruces, N.M., pled guilty today in federal court to methamphetamine trafficking charges under a plea agreement with the U.S. Attorney’s Office.
Cleveland and co-defendant Eric G. Acosta, 28, also of Las Cruces, were arrested in July 2014, on a criminal complaint charging them with possession of methamphetamine with intent to distribute, using a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon. The complaint alleged that during a routine traffic stop on June 23, 2014, officers of the Las Cruces Police Department discovered approximately 889.2 grams of methamphetamine, a firearm and drug paraphernalia inside a vehicle driven by Acosta and in which Cleveland was a passenger. It further alleged that Cleveland and Acosta had traveled from Arizona, where they obtained the methamphetamine, to Las Cruces in Doña Ana County, N.M., where they intended to distribute the drugs.
An indictment subsequently was filed on Oct. 16, 2014, charging Acosta and Cleveland with a methamphetamine trafficking conspiracy and possession of methamphetamine with intent to distribute. The indictment also charged each of the two men with being a felon in possession of a firearm. The two men were charged with committing these crimes on June 23, 2014, in Doña Ana County. At the time, Acosta and Cleveland each was prohibited from possessing firearms or ammunition because each had previously been convicted a felony offense.
During today’s proceedings, Cleveland admitted to conspiring with Acosta to possess methamphetamine with intent to distribute and possession of methamphetamine with intent to distribute on June 23, 2014, in Doña Ana County.
On May 14, 2015, Acosta pled guilty to the conspiracy charge, the substantive methamphetamine trafficking charge, and to being a felon in possession of a firearm. Acosta entered his guilty plea without the benefit of a plea agreement.
At sentencing, Acosta and Cleveland each face a statutory mandatory minimum of ten years in federal prison. Both men remain in custody pending sentencing hearings, which have yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. 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.
Kansas Man Charged with Exporting Firearms to Overseas PurchasersRead the Press Release
KANSAS CITY, KAN. – A Kansas man is charged in an eighteen-count indictment unsealed today with removing, altering or obliterating manufacturer’s serial numbers, causing other individuals to make straw purchases of firearms and exporting firearms overseas, U.S. Attorney Barry Grissom said.
Michael Andrew Ryan, also known as “Brad Jones” and “GunRunner,” 35, of Manhattan, Kan., was charged in an indictment filed on June 3, 2015, in Topeka with knowingly making false statements to licensed firearms dealers; possession of firearms from which the manufacturer’s serial numbers had been removed, altered and obliterated; and exporting and/or attempting to export these firearms in different packages from the United States to individuals located in other countries.
According to allegations in the indictment, Ryan knowingly possessed a total of nine guns, including a Glock model 27 .40 caliber pistol, from which the manufacturer's serial numbers had been removed, altered and obliterated, 318 rounds of assorted ammunition and eight magazines, which had been shipped and transported in interstate and foreign commerce in violation of federal law.
According to allegations in the indictment, Ryan had also exported and attempted to export these firearms in different packages from the United States to individuals located in Cork, Ireland; Mallow, Ireland; Pinner, England; Edinburgh, Scotland; and Victoria, Australia.
The charges contained in the indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kansas City Field Division; Department of Homeland Security’s Customs and Border Protection and Homeland Security Investigations Topeka Divisions; the Manhattan Police Department and Riley County, Kan., Police Department; with assistance from the ATF Washington D.C. Division. The case is being prosecuted by Assistant U.S. Attorney Greg Hough of the District of Kansas, Senior Counsels Marie-Flore Johnson and Gavin Corn of the Criminal Division’s Computer Crime and Intellectual Property Section.
Judge Tanya Walton Pratt sentences Bloomington public official to federal prisonRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the sentencing of a former Bloomington public official for one count of conspiracy to commit wire fraud and 10 counts of wire fraud. U.S. District Judge Tanya Walton Pratt sentenced Justin Wykoff, 44, Bloomington, to 55 months in federal prison today.
“Public officials are trusted to serve the people not to serve themselves,” said Minkler. “Those who choose to line their pockets using money from the public payroll can expect the full force of the federal prosecution hammer. Judge Walton Pratt’s sentence sends a strong message; if you choose to abuse the public’s trust as a public official, you will go to prison. There will be no probation, no half-way house, no suspended sentence, no parole. The sentence will be prison.”
Wykoff, was the Manager for Engineering Services for the City of Bloomington and pled guilty in federal court in March 2015, to 11 counts of wire fraud. He was responsible for bidding and awarding contracts for public works projects in the City of Bloomington, like road paving and sidewalk construction. Between April 2011 to February 2014, Wykoff solicited and received substantial cash bribes and kickbacks from Roger Hardin and Zach Hardin, who operated a company called Reliable Concrete and Construction. In exchange for the kickbacks, Wykoff assisted the Hardins in obtaining over $800,000 in city construction contracts and payments for Reliable Concrete.
Wykoff estimated project costs and prepared bid proposals, using his inside information to ensure Reliable Concrete was the low bidder. In some cases, Wykoff awarded city contracts to Reliable Concrete outright without obtaining bids from other contractors. Wykoff also authorized city payments to Reliable Concrete totaling approximately $807,000. Of that amount, approximately $300,000 was for work that was never completed by Reliable Concrete.
Wykoff and the Hardins took steps to conceal their scheme by creating false Reliable Concrete bid proposals after the fact. On February 17, 2014, Wykoff went to Roger Hardin’s home and created multiple bid proposal forms for projects that the City of Bloomington had already paid Reliable Concrete for – even though Reliable Concrete had not performed the work. The forms were backdated to coincide with the dates that the work was supposed to have taken place. Wykoff initialed or signed these forms as if he had approved the bids and then planted copies of the forms in his office in an attempt to further conceal the scheme.
Roger Hardin was sentenced to 33 months for his role in the scheme. His son, Zachary was sentenced to 12 months. All three are equally responsible for restitution of over $400,000 to the City of Bloomington.
The investigation was conducted by the FBI and the Bloomington Police Department.
FBI Special Agent in Charge W. Jay Abbott stated, “Public corruption is one of the FBI’s top investigative priorities and FBI Agents remain committed to pursuing those individuals that violate the public’s trust.”
According to Senior Litigation Counsel Steve DeBrota and Assistant United States Attorney Nick Linder, who are prosecuting the case for the government, Wykoff must serve 3 years of supervised release after his sentence.
Iowa Man Indicted for Making Threats Targeting Boston-Based Islamic Cultural CenterRead the Press Release
BOSTON – An Iowa man was indicted today on charges of threatening to shoot and kill Muslims by posting threats on the Facebook page of an Islamic organization in Boston.
Gerald Wayne Ledford, 57, of Clinton, Iowa, was indicted for transmitting in interstate or foreign commerce a communication containing a threat to injure the person of another. He was arrested in Iowa on Wednesday, June 3, 2015, and is scheduled to appear in Boston on June 24, 2015 at 2:15 p.m.
Prior court filings allege that on Oct.19, 2014, Ledford threatened the Islamic Society of Boston Cultural Center (ISBCC), a cultural center that offers a mosque and a variety of educational, spiritual, and social services to Muslims in New England. The indictment alleges that Ledford posted two threats on the ISBCC’s Facebook page. One post threatened, “Mohamed was a child rapist .a murderer and molester.you all will go to hell with you’re father satan..we will destroy you here and in your’re s**t hole countrys.” The second post consisted of a photograph of a man bearing a long gun with the caption, “This is for you.followers of the piece of s**t Mohamed …” The indictment further alleges that Ledford intended these posts to threaten the ISBCC and its members, and with knowledge that they would be viewed as threats.
Although prior filings allege that the charged threats were posted on the Facebook page of the ISBCC as the intended target, they also allege that Ledford’s own Facebook page contains additional relevant posts. For example, on or about Oct. 22, 2014, apparently reacting to news reports of shootings by a recent convert to Islam in Canada, Ledford allegedly posted, “Why can't the American and Canadian gov's just admit that a person with Islamic tendencies be called a Islamic terrorist!!” In another example, on Feb. 13, 2015, apparently reacting to news reports about the murder of three Muslim students of the University of North Carolina, Ledford allegedly posted, “Wow a white man kills three islamists and it’s a hate crime?Good job brother! [aggressive emoticon] Now we only have to take 999999 more of there innocent people!!! An eye for a eye,!!!”
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Scott L. Garland of Ortiz’s Civil Rights Enforcement Team.
The details contained in the indictment and prior court filings are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hidalgo Man Gets Lengthy Sentence for Smuggling MethRead the Press Release
McALLEN, Texas – Manuel de la Cruz Jr., 32, has been ordered to federal prison following his conviction for conspiring to possess with the intent to distribute nearly 11 kilograms of methamphetamine, announced U.S. Attorney Kenneth Magidson. De la Cruz, a U.S. citizen from Hidalgo, pleaded guilty Feb. 2, 2015.
Today, visiting U.S. District Judge Marina Garcia Marmolejo sentenced de la Cruz to 150 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, Judge Marmolejo discussed de la Cruz’s involvement in a DWI wreck where his children were passengers and his involvement in further drug-related activity.
On Sep. 24, 2013, de la Cruz was traveling north on U.S. Highway 281 in Brooks County when he was stopped for a traffic violation. A subsequent search of his vehicle led to the discovery of approximately 11 kilograms of methamphetamine. He initially claimed to be traveling for work, but later admitted being paid $1,500 to transport the narcotics.
De la Cruz has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation by Homeland Security Investigations, Texas Department of Public Safety and the Drug Enforcement Administration. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Grant County man convicted of embezzling more than $100,000 in government benefitsRead the Press Release
ELKINS, WEST VIRGINIA – John Fitsgerald Kimble, 52, of, Petersburg, West Virginia, was convicted today of unlawfully collecting more than $100,000 in government benefits, United States Attorney William J. Ihlenfeld, II, announced.
Kimble’s wife passed away in April 2003. Kimble began to collect Title II Social Security and Widow with Child benefits from the Social Security Administration. He was entitled to receive these benefits so long as the couple’s surviving child lived with him. In May 2003, Kimble transferred custody of the child to a relative. As a result, Kimble was no longer entitled to collect the aforementioned government benefits. Between 2003 and 2013, Kimble unlawfully collected $184,814 in social security benefits.
Kimble pled guilty today to one count of “Theft of Government Money.” He 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 Michael Stein prosecuted the case on behalf of the government. The United States Social Security Administration Office of Inspector General led the inquiry.
U.S. Magistrate Judge John S. Kaull presided.
Four Mexican Nationals Indicted for Meth, Nearly Eight Kilos Seized by ATFRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four Mexican nationals were indicted by a federal grand jury today, in two separate but related cases, for their roles in distributing large amounts of methamphetamine in Jackson County, Mo., and elsewhere.
The indictments, returned by a federal grand jury in Kansas City, Mo., are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives into the distribution of large quantities of methamphetamine. In the course of the investigation, ATF agents seized nearly eight kilograms of methamphetamine.
The indictments replace separate federal criminal complaints that were filed on May 21, 2015.
USA v. Santana-Martinez, et al.
Artemio Santana-Martinez, 26, of Oakland, Calif., and Antonio Aguilar-Reyes, 39, of Boulevard, Texas, both of whom are citizens of Mexico, are charged with aiding and abetting each other to possess methamphetamine with the intent to distribute on May 20, 2015.
According to an affidavit filed in support of the original criminal complaint, a cooperating defendant (who is not identified in court documents) told agents that one of his/her suppliers, later identified as Santana-Martinez, was a kilogram-level methamphetamine dealer and that the cooperating defendant had been purchasing large quantities of methamphetamine from this source for several months.
On May 20, 2015, the cooperating defendant (working under the direction of ATF agents) contacted Santana-Martinez and ordered a kilogram of methamphetamine to be delivered to an Independence, Mo., residence. That afternoon, the affidavit says, Santana-Martinez and Aguilar-Reyes arrived at the Independence residence and were arrested. Agents searched their vehicle and seized two kilograms of methamphetamine, four cell phones and a small bound composition book which appeared to be a drug ledger (in Spanish). Agents also seized $800 from Aguilar-Reyes and $89 from Santana-Martinez.
USA v. Garcia-Miranda, et al.
Jorge Garcia-Miranda, 29, and Abel Gonzalez-Jimenez, 44, both of whom are Mexican nationals with unknown addresses, were charged with participating in a conspiracy to distribute methamphetamine in Jackson County and elsewhere between Dec. 14, 2014, and May 1, 2015.
Garcia-Miranda and Gonzalez-Jimenez were arrested on May 20, 2015, in their room at a Mission, Kan., hotel, where federal agents seized approximately 5.7 kilograms of methamphetamine.
According to an affidavit filed in support of the original criminal complaint, a cooperating defendant (working under the direction of ATF agents) placed an order for a kilogram of methamphetamine from one of his/her suppliers (who is not identified in court documents). Agents had previously observed the cooperating defendant purchase approximately 2.5 kilograms of methamphetamine from this supplier.
Agents followed the supplier to the Mission hotel, then pulled him over in a traffic stop after he/she left the hotel. He/she allegedly told officers that Gonzalez-Jimenez, who had a room at the hotel, was supposed to obtain methamphetamine for him to sell to the cooperating defendant. However, the affidavit says, Gonzalez-Jimenez was “cleaning” the methamphetamine so it wouldn’t be available until the following day. “Cleaning” methamphetamine involves using dangerous and flammable chemicals, including acetone.
When agents knocked on the door of the hotel room, Garcia-Miranda opened the door but attempted to slam it shut as soon as he realized they were law enforcement officers. Agents prevented the door from being shut and detected a strong acetone odor coming from inside the room. A large quantity of methamphetamine was in the process of being “cleaned” in the hotel room, the affidavit says. Agents also observed acetone being heated on the stove and a lit candle. Certified decontamination agents removed the toxic fumes from the room to protect the agents and hotel guests.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. They were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former U.S. Army Specialist Pleads Guilty to Taking a Bribe While Deployed in AfghanistanRead the Press Release
A former specialist with the U.S. Army pleaded guilty to accepting a bribe from an Afghan truck driver at Forward Operating Base Gardez, Afghanistan (FOB Gardez), in exchange for allowing the driver to take thousands of gallons of fuel from the base for resale on the black market. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.
Anthony Don Tran, 28, of Stockton, California, pleaded guilty before U.S. District Court Judge Beth L. Freeman of the Northern District of California to one count of bribery of a public official.
According to admissions made in conjunction with his guilty plea, in exchange for $20,000 in cash, Tran permitted a local Afghan fuel truck to depart FOB Gardez without downloading roughly 12,000 gallons of fuel purchased by the U.S. government and designated for the base. Tran admitted that, on May 21, 2013, after returning from deployment, he purchased a 2010 Dodge Challenger with the cash derived from the bribe.
In addition, Tran admitted to accepting at least $1,000 in cash from two other members of his unit, U.S. Army sergeants James Edward Norris and Seneca Hampton, in exchange for Tran agreeing not to report them for also taking bribes for fuel. Both Norris and Hampton previously pleaded guilty to their roles in the scheme. On May 21, 2015, Norris was sentenced to serve 51 months in prison. Hampton is scheduled to be sentenced on July 28, 2015.
Pursuant to his plea agreement, Tran agreed to forfeit the proceeds he received from the bribery scheme as well as to pay full restitution. Sentencing has been scheduled for Sept. 22, 2015.
The case is being investigated by the U.S. Army Criminal Investigation Command, the Office of the Special Inspector General for Afghanistan Reconstruction, the Defense Criminal Investigative Service and the Defense Contract Audit Agency, Investigative Support Division. The case is being prosecuted by Trial Attorneys John Keller and Sean Mulryne of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Michael Solis and Danial Bennett of the Middle District of Georgia.
Former U.S. Army Specialist Pleads Guilty to Taking A Bribe While Deployed in AfghanistanRead the Press Release
WASHINGTON – A former specialist with the U.S. Army pleaded guilty to accepting a bribe from an Afghan truck driver at Forward Operating Base Gardez, Afghanistan (FOB Gardez), in exchange for allowing the driver to take thousands of gallons of fuel from the base for resale on the black market. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.
Anthony Don Tran, 28, of Stockton, California, pleaded guilty before U.S. District Court Judge Beth L. Freeman of the Northern District of California to one count of bribery of a public official.
According to admissions made in conjunction with his guilty plea, in exchange for $20,000 in cash, Tran permitted a local Afghan fuel truck to depart FOB Gardez without downloading roughly 12,000 gallons of fuel purchased by the U.S. government and designated for the base. Tran admitted that, on May 21, 2013, after returning from deployment, he purchased a 2010 Dodge Challenger with the cash derived from the bribe.
In addition, Tran admitted to accepting at least $1,000 in cash from two other members of his unit, U.S. Army sergeants James Edward Norris and Seneca Hampton, in exchange for Tran agreeing not to report them for also taking bribes for fuel. Both Norris and Hampton previously pleaded guilty to their roles in the scheme. On May 21, 2015, Norris was sentenced to serve 51 months in prison. Hampton is scheduled to be sentenced on July 28, 2015.
Pursuant to his plea agreement, Tran agreed to forfeit the proceeds he received from the bribery scheme as well as to pay full restitution. Sentencing has been scheduled for Sept. 22, 2015.
The case is being investigated by the U.S. Army Criminal Investigation Command, the Office of the Special Inspector General for Afghanistan Reconstruction, the Defense Criminal Investigative Service and the Defense Contract Audit Agency, Investigative Support Division. The case is being prosecuted by Trial Attorneys John Keller and Sean Mulryne of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Michael Solis and Danial Bennett of the Middle District of Georgia.
Former President of Riverside General Hospital Sentenced to 45 Years in Prison in $158 Million Medicare Fraud SchemeRead the Press Release
Operator of Psychiatric Facility Sentenced to 20 Years in Prison, and Owner of Group Home Sentenced to 12 Years in Prison
The former president of a Houston hospital, his son and a co-conspirator were sentenced today to 45 years, 20 years and 12 years in prison, respectively, for their roles in a $158 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge Lucy R. Cruz of the Internal Revenue Service Criminal Investigation’s (IRS-CI) Houston Field Office, the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), Special Agent in Charge Mike Fields of the U.S. Department of Health & Human Services-Office of the Inspector General (HHS-OIG) Dallas Regional Office, Special Agent in Charge Joseph J. Del Favero of the Railroad Retirement Board-Office of Inspector General (RRB-OIG) and Inspector General Patrick E. McFarland of the Office of Personnel Management-Office of Inspector General (OPM-OIG) made the announcement.
“The former President of Houston's Riverside hospital, his son and their co-conspirators saw mentally ill, elderly and disabled Medicare beneficiaries as commodities to be turned into profit centers – not as vulnerable individuals in need of health care,” said Assistant Attorney General Caldwell. “Rather than providing needed medical care to a historically underserved community, the defendants ran a longstanding hospital into the ground through their greed and fraud. According to the evidence presented at trial, the defendants had patients sit around the facility watching movies while they received no treatment. Meanwhile, the defendants billed Medicare more than $158 million for care that was never provided. This brazen fraud cannot and will not be tolerated.”
Earnest Gibson III, 70, the former president of Riverside General Hospital, Earnest Gibson IV, 37, the operator of Devotions Care Solutions, a satellite psychiatric facility of Riverside General Hospital, and Regina Askew, 50, the owner of Safe and Sound group home, were sentenced by U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. In addition to the significant terms of imprisonment, Earnest Gibson III was ordered to pay restitution in the amount of $46,753,180, Earnest Gibson IV was ordered to pay restitution in the amount of $7,518,480, and Regina Askew was ordered to pay restitution in the amount of $46,255,893.
Following a five-week jury trial, on Oct. 20, 2014, Earnest Gibson III, Earnest Gibson IV and Regina Askew each were convicted of conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, as well as related counts of paying or receiving illegal kickbacks. Earnest Gibson III and Earnest Gibson IV also were convicted of conspiracy to commit money laundering. Co-defendant Robert Crane, a patient recruiter, also was convicted of conspiracy to pay and receive kickbacks, and is scheduled to be sentenced on Dec. 9, 2015.
According to evidence presented at trial, from 2005 until June 2012, the defendants and others engaged in a scheme to defraud Medicare by submitting to Medicare, through Riverside and its satellite locations, approximately $158 million in false and fraudulent claims for partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for severe mental illness.
Specifically, evidence at trial demonstrated that the Medicare beneficiaries for whom the hospital billed Medicare did not qualify for or need PHP services. Moreover, the evidence showed that Medicare beneficiaries rarely saw a psychiatrist and did not receive intensive psychiatric treatment. In fact, some of the beneficiaries were suffering from Alzheimer’s and could not actively participate in the treatment for which Medicare was billed.
Evidence presented at trial also showed that Earnest Gibson III paid kickbacks to patient recruiters and to owners and operators of group care homes, including Regina Askew, in exchange for which those individuals delivered ineligible Medicare beneficiaries to the hospital’s PHPs. Earnest Gibson IV also paid patient recruiters, including Robert Crane and others, to deliver ineligible Medicare beneficiaries to the specific PHP operated by Earnest Gibson IV.
To date, six other individuals either have pleaded guilty based on their involvement in the scheme. Mohammad Khan, an assistant administrator at Riverside, who managed many of the hospital’s PHPs, pleaded guilty to conspiracy to commit health care fraud, conspiracy to defraud the United States and to pay illegal kickbacks, and five counts of paying illegal kickbacks; on May 21, 2015, Mohammad Khan was sentenced by U.S. District Judge Sim Lake of the Southern District of Texas to 40 years in prison for his role in the scheme. William Bullock, an operator of a Riverside satellite location, as well as Leslie Clark, Robert Ferguson, Waddie McDuffie and Sharonda Holmes, who were involved in paying or receiving kickbacks, also have pleaded guilty to participating in the scheme and await sentencing.
The case was investigated by the FBI, IRS-CI, Texas MFCU, HHS-OIG, RRB-OIG and OPM-OIG. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas. The case is being prosecuted by Assistant Chiefs Laura M.K. Cordova and Jennifer L. Saulino and Trial Attorney Ashlee C. McFarlane of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who collectively have billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.