Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 22 April 2015
Orlando Man Indicted for Attempted Sexual Enticement of A MinorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Ronald Grocoff (62, Orlando) with the attempted sexual enticement of a minor. If convicted, he faces a minimum mandatory term of 10 years, up to life, in federal prison.
According to court documents, on March 27, 2015, Grocoff responded to an online advertisement posted by an undercover FBI Task Force Officer (“UC”). Grocoff and the UC soon began discussing Grocoff’s interest in paying the UC to have sex with the UC’s 12-year-old “daughter.” On April 6, 2015, Grocoff made arrangements to meet the UC and his “daughter.” A few days later, he agreed to pay the UC $20 and an unspecified amount of marijuana to have intercourse and oral sex with the “child.” That afternoon, Grocoff traveled to Seminole County to meet the UC. When he arrived at the prearranged meeting place, he approached the “father” and was arrested. In addition to a small amount of suspected marijuana, agents also found condoms and lubricant in Grocoff’s possession.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.
This is another case 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 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.justice.gov/psc.
Ocoee Man Sentenced to Seven Years for Distribution of Child PornographyRead the Press Release
Orlando, FL – Senior United States District Judge John Antoon, II today sentenced Shawn Williams (42, Ocoee) to seven years in federal prison for distributing child pornography. He was also ordered to serve a 15-year term of supervision and to register as a sex offender upon his release from prison. Williams pleaded guilty on October 31, 2014.
According to court documents, Williams responded to a sexually explicit Craigslist ad and began conversing online with an Orlando man, William Edward Osman. The two men discussed their mutual interest in child pornography and attempted to make arrangements to meet in person for a sexual rendezvous. On May 9, 2013, Williams used his cell phone to send Osman images depicting child pornography, and they discussed meeting to share their collections of child pornography. During their conversations, Osman told Williams that he had a one-year-old child. Williams then asked Osman to send him “baby pics” and “adult with baby pics.”
On October 15, 2013, special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations arrested Osman on charges related to the sexual exploitation of children. Agents seized Osman’s phone and identified Williams as one of the individuals with whom he had been electronically trading child pornography.
On September 3, 2014, Osman was sentenced to 60 years in federal prison for producing, distributing, and possessing child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.
This was another case 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 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.justice.gov/psc.
Noble Energy Inc. Agrees to Make System Upgrades and Fund Projects to Reduce Air Pollution in ColoradoRead the Press Release
Today, a settlement with Houston-based Noble Energy, Inc. resolving alleged Clean Air Act violations stemming from the company’s oil and gas exploration and production activities in the Denver-Julesburg Basin, north of Denver, Colorado. The settlement resolves claims that Noble failed to adequately design, size, operate and maintain vapor control systems on its controlled condensate storage tanks, resulting in emissions of volatile organic compounds (VOCs). VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis, announced the Department of Justice’s Environment and Natural Resources Division, the Environmental Protection Agency (EPA) and the state of Colorado.
As part of the settlement, Noble will spend an estimated $60 million on system upgrades, monitoring and inspections to reduce emissions, in addition to $4.5 million to fund environmental mitigation projects, $4 million on supplemental environmental projects and a $4.95 million civil penalty.
The case arose from a joint EPA and Colorado investigation that found significant VOC emissions coming from storage tanks, primarily due to undersized vapor control systems. Noble has agreed to evaluate vapor control system designs, significantly reduce VOC emissions, and provide reports to the public. These reports will give other companies the opportunity to learn and apply this information to emissions estimates and vapor control system designs. Using advanced monitoring technologies, Noble will be better able to detect air pollution problems in real time and ensure proper operation and maintenance of pollution control equipment.
“This first-of-its-kind settlement takes a basin-wide, systematic approach to address oil and gas emissions,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “Our nation’s energy security and independence requires that oil and gas production be done safely, responsibly and lawfully. We look forward to continuing to work with states and the oil and gas industry to ensure that oil and gas emissions are minimized nationwide.”
“Today’s settlement shows what can happen when federal and state governments work together to find innovative solutions to today’s complex pollution challenges,” said Cynthia Giles, assistant administrator for enforcement and compliance assurance at EPA. “This agreement highlights how air pollution can be addressed from a significant sector in a commonsense way, and helps spur development of advanced pollution control technologies that will be available to the entire industry. As domestic energy development grows, we all have a stake in making sure it’s done responsibly.”
Under the settlement lodged today in Colorado, Noble will perform engineering evaluations and make modifications to ensure that its vapor control systems are properly designed and sized to capture and control VOC emissions. Noble will use an infrared camera to inspect these systems, both initially to confirm capture and control of VOCs and periodically to verify proper upkeep and operation. These activities will be audited by a third-party and Noble will develop and post reports summarizing its engineering evaluations and modifications online. Additionally, Noble will install monitors at certain storage tanks to detect tank pressure increases that may indicate possible emission releases. Noble has also committed to evaluate the condition of pressure relief valves, thief hatches and mountings and gaskets on each storage tank and address any evidence of VOC emissions from those devices.
EPA estimates that modifications to the vapor control systems will reduce VOC emissions by at least 2,400 tons per year and that significant additional reductions will be achieved with operational and maintenance improvements.
The settlement covers all of Noble’s controlled condensate storage tanks in the Denver eight-hour ozone marginal nonattainment area that have vapor control systems operating pursuant to the Colorado State Implementation Plan – more than 3,400 tank batteries, which are multiple storage tanks located together. Noble must survey all of its controlled condensate storage tanks in the area and implement any needed design changes to minimize emissions and ensure compliance with state regulations. Noble already has begun this work, having focused first on its largest storage tank batteries.
In addition to system upgrades, monitoring and inspections, Noble will spend at least $4.5 million on mitigation projects to reduce and prevent harmful emissions. These projects include: offloading condensate from storage tanks into tanker trucks in a closed system to prevent vapors from being emitted to the atmosphere, retrofitting diesel engines on drilling rigs and pumps used in fracturing operations to lower emissions of nitrogen oxide or ozone precursors and replacing high-emitting two-stroke gas-fired lawnmowers being used by residents with electric lawnmowers. These projects are expected to reduce VOC and nitrogen oxide emissions by a combined 800 tons or more per year. Additionally, Noble will require its tank truck contractors to implement an alternative oil measurement standard once it is approved by relevant authorities. This would substantially reduce or eliminate VOC emissions associated with opening storage tanks’ thief hatches.
Noble will also complete supplemental environmental projects costing a total of $4 million. One of the projects will provide financial incentives to residents in the ozone non-attainment area to replace or retrofit inefficient, higher-polluting wood-burning or coal appliances with cleaner burning, more efficient heating appliances and technologies. This project is expected to achieve emission reductions of 450 tons per year of carbon monoxide, 130 tons per year of VOCs, 60 tons per year of fine particulates known as PM2.5 and 10 tons per year of hazardous air pollutants. A second project will consist of a study – portions of which will be reported publicly – evaluating the reliability of various pressurized hydrocarbon liquids sampling and laboratory analysis techniques. The study is expected to result in more accurate data to estimate emissions associated with condensate storage tanks. Noble will spend $2 million on additional State-approved supplemental environmental projects. Noble will propose projects for state approval after the court concludes its review of the settlement.
This settlement is part of EPA’s national enforcement initiative to reduce public health and environmental impacts from energy extraction activities. For more information about EPA’s enforcement initiative, click here: http://www2.epa.gov/enforcement/national-enforcement-initiative-ensuring-energy-extraction-activities-comply
The state of Colorado will receive $1.475 million of the total $4.95 million civil penalty in this case.
The proposed consent decree is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at http://www.justice.gov/enrd/Consent_Decrees.html.
Muskogee Man Sentenced to 120 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that HANK JOSHUA BELL, age 34, of Muskogee, Oklahoma, was sentenced to 120 months imprisonment for Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
Charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation. The defendant was indicted in November, 2014 and pled guilty in December, 2014.
The Indictment alleged that on or about October 8, 2014, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Linda Epperley represented the United States.
Morris County, N.J., Man Sentenced to 44 Months in Prison for Defrauding Investers of $500,000 Through Phony Investment SchemeRead the Press Release
NEWARK, N.J. – A Morris County, N.J., man was sentenced today to 44 months in prison for fraudulently obtaining $500,000 by promising investors favorable returns and that funds would be used to finance educational television programming for teenage audiences, U.S. Attorney Paul Fishman announced.
Peter Lareau, 78, of Mountain Lakes, N.J., previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of wire fraud. Judge Salas imposed the sentencing in Newark federal court.
According to documents filed in this case and statements made in court:
From June 2008 through January 2010, Lareau created numerous entities, including T4Teens LLC and Concordia Mediaworks LLC, for the purpose of soliciting investors. Lareau recruited investors through civic, religious and charitable organizations, as well as through alumni events at prestigious education institutions.
In addition to promising greater-than-market returns, Lareau falsely represented that investors’ funds would be used for educational television programming for teenage audiences.
He sent investors prospectuses and other information related to investment opportunities by email and then directed them to wire funds from brokerage accounts in New York to his business accounts in New Jersey.
Instead of using the funds for educational programming or other business-related purposes, Lareau used those funds for personal expenses, including groceries, tuition payments for his child, rent payments, and club memberships.
In addition to the prison term, Judge Salas sentenced Lareau to one year of supervised release and ordered him to pay restitution of $533,000.
U.S. Attorney Fishman credited special agents from the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing.
The government is represented by U.S. Attorney Lorraine S. Gerson of the Economic Crimes Unit in Newark.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Memorial Herman Printing and Mail Services Manager Admits to Embezzling Nearly $10 Million in False Invoicing SchemeRead the Press Release
HOUSTON – Kenneth Joseph Wild II, 49, of Katy, has pleaded guilty to defrauding his employer, Memorial Herman Health Systems, of nearly $10 million over a 14-year period, announced U.S. Attorney Kenneth Magidson.
In a proceeding before the Honorable Kenneth M. Hoyt this morning, Wild entered his guilty plea to a criminal information charging a single count of mail fraud.
Wild’s plea agreement explains that on or about Feb. 23, 2001, he was appointed as manager of Printing and Mail Services, a division within Memorial Herman which oversees and outsources the creation of all informational and promotional materials disseminated by Memorial Herman. In this role, Wild had the responsibility for approving invoices submitted for printing services utilized by Memorial Herman and for forwarding those invoices to accounts payable for payments to be remitted via checks delivered by U.S. mail.
On or about March 8, 2001, just two weeks after Wild’s promotion to management, an entity named Digital Designs Limited began submitting invoices to Memorial Herman for printing and data conversion services purportedly provided to Memorial Herman. Wild used his position to cause the Digital Designs invoices to be approved. Over the span of 14 years, from March 2001 through March 2015, Wild submitted 229 invoices totaling $9,302,667.29 in the name of Digital Designs for services that were never provided to Memorial Herman.
On March 11, 2015, Memorial Herman’s chief audit and compliance officer received an anonymous, hand-written letter alleging the Digital Designs account was an anomalous, ghost account and asking for an investigation. As a result, Memorial Herman swiftly conducted a preliminary review of the account and immediately reached out to law enforcement to report the incident.The investigation revealed that the address listed for Digital Designs was a P.O. Box opened by Wild in 1996. In October 2001, Wild had obtained an assumed name certificate from the Harris County Clerk’s Office for “Digital Designs of Texas, P.O. Box 36345, Houston, TX 77236.” The investigation further revealed that payments remitted to Digital Designs were deposited into a bank account which was assigned to Wild with a dba of Digital Designs. Wild deposited the checks from Memorial Herman into that account and then transferred those funds to other accounts he controlled. He then used the funds to support his extravagant lifestyle which included, among other things, making significant personal expenditures, purchasing a home and making substantial improvements and extensive international travel for himself and his family and friends.
As part of his plea agreement, Wild agreed to forfeit his home and all of its contents, his vehicles, his 401K pension plan with Memorial Herman and any other financial assets in his possession. These funds will be used to pay restitution to Memorial Herman.
Judge Hoyt accepted the plea today and has set sentencing for June 29, 2015, at which time Wild faces up to up to 20 years in federal prison and a possible $250,000 maximum fine. He has been in custody since his arrest on March 21, 2015, where he will remain pending that hearing.
The charges are the result of an investigation by U.S. Postal Inspection Service. Assistant U.S. Attorney Jason Varnado is prosecuting the case.
Martinsburg woman convicted of falsifying mortgage documentsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Amanda Bishop, 35, of Martinsburg, was convicted today in federal court after she submitted fraudulent mortgage documents during court proceedings, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Federal Bureau of Investigation revealed that Bishop fell behind on her mortgage payments and subsequently created and submitted to the court fake bank statements purporting to show that she had made mortgage payments in the amount of $1,848.00 on Nov. 17, 2010 and Dec. 15, 2010.
Bishop pled guilty today to one count of “False Declaration Before Court,” for which she faces up to five years in prison and a fine of up to $250,000.00. 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. Attorneys Paul Camilletti and Anna Krasinski prosecuted the case on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Manhattan U.S. Attorney Announces Charges and Arrest in “Pump and Dump” Stock Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent-in-Charge of the Newark Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the arrest of DWAYNE BIGELOW for allegedly participating in a $9 million “pump and dump” stock fraud scheme. Twelve other participants in related pump and dump stock fraud schemes have previously been convicted. As alleged in the Superseding Indictment unsealed yesterday, BIGELOW orchestrated a scheme to manipulate the price of penny stocks through the dissemination of misleading promotional campaigns designed to induce victim investors to purchase penny stocks at artificially inflated prices, thereby allegedly permitting BIGELOW and others to sell the stock they held at a profit. BIGELOW was arrested in Florida yesterday and was presented today in federal court in the Southern District of Florida. BIGELOW will be arraigned at a later date before United States District Judge Paul A. Crotty, to whom the case is assigned.
Manhattan U.S. Attorney Preet Bharara said: “Dwayne Bigelow is alleged to have engaged in a classic pump and dump scheme where the prices of worthless stocks were inflated with the puffery and false representations of paid stock promoters. Bigelow and his co-conspirators allegedly got wealthy, while their victims got fleeced. I want to thank the IRS and the HIDTA Task Force for their work in policing this alleged fraud.”
IRS-CI Special Agent-in-Charge Jonathan D. Larsen said: “Illegal activity involving the investment industry has brought financial ruin to many Americans. As alleged in the indictment, Mr. Bigelow and his co-conspirators manipulated certain penny stocks in a pump and dump scheme that enabled them to earn profits to the tune of over $9 million dollars. IRS-Criminal Investigation is proud to bring our financial investigative skills to team up with our law enforcement partners to investigate and put a stop to this type of illegal activity.”
As alleged in the Superseding Indictment, other documents previously filed in this case, and evidence introduced in court:
DWAYNE BIGELOW and his co-conspirators orchestrated a scheme to defraud investors in multiple companies by helping to take those companies public, hiring individuals to engage in misleading promotion campaigns designed to increase the price and trading volume of the companies’ stocks, and then taking advantage of the “pumped up” price and trading volume by “dumping” their shares into the market.
The scheme worked as follows: BIGELOW and his co-conspirators targeted privately held companies, which were engaged in little to no legitimate business activity, and orchestrated so-called “reverse mergers” between the target companies and shell companies controlled by BIGELOW and others. As a result, BIGELOW and his associates and co-conspirators obtained large quantities of publicly traded shares in the targeted companies, which traded as penny stocks.
BIGELOW then paid other individuals who acted as promoters to carry out misleading promotional campaigns, including by sending e-mails touting the stocks to lists of potential investors using purportedly independent stock analysis email newsletters. These misleading promotional campaigns caused demand for stock in the targeted companies, and the prices of the target companies’ stocks, to rise. BIGELOW and his co-conspirators took advantage of the “pumped-up” stock trading volume and price by “dumping” their shares into the market until the misleading promotional campaign had run out of steam.
The Superseding Indictment alleges three pump and dump securities and wire frauds concerning the stocks of Emerging World Pharma, Inc. (“EWPI”), SMC Entertainment, Inc. (“SMCE”), and Sierra Resources Group, Inc. (“SIRG”). According to the Superseding Indictment, BIGELOW and his co-conspirators made over $9 million from manipulation of these three stocks alone.
BIGELOW, 46, of Jupiter, Florida, is charged in the Superseding Indictment with one count of conspiracy to commit securities fraud and wire fraud (Count One), three counts of securities fraud (Counts Two through Four), and three counts of wire fraud (Counts Five through Seven). The securities and wire fraud charges carry a maximum term of 20 years in prison on each count, and the conspiracy charge carries a maximum term of five years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This case originated out of the Government’s long-term investigation into criminal conduct at the Port of New York-New Jersey, which uncovered the charged “pump and dump” stock fraud scheme. Mr. Bharara thanked the Internal Revenue Service-Criminal Investigations’ New Jersey office, as well as the other participants in the High Intensity Drug Trafficking Area (“HIDTA”) Task Force, which includes the New Jersey Offices of the Drug Enforcement Administration and Immigration and Customs Enforcement’s Homeland Security Investigations, for their outstanding work on the investigation. Mr. Bharara also thanked the Securities and Exchange Commission and the Financial Industry Regulatory Authority for their assistance with the investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Howard S. Master, Carrie H. Cohen, and Katherine C. Reilly are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Dwayne Bigelow Indictment
Man Sentenced to 48 Months in Prison for AssaultRead the Press Release
United States Attorney James L. Santelle announced that Scott C. Rettler, (age: 45) of Neopit, WI located on the Menominee Indian Reservation, was sentenced on April 20, 2015, to 48 months of imprisonment, followed by a three year term of supervised release. The sentence was the result of a guilty plea by Rettler on January 26, 2015, to a federal information charging him with assaulting his girlfriend, which resulted in substantial bodily injury to the victim.
The investigation revealed that on October 14, 2014, Rettler assaulted his girlfriend, with a hammer at a residence on the Menominee Indian Reservation.
This case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.
# # # # #
Lowell Man Sentenced for Firearms TraffickingRead the Press Release
BOSTON – Julio Gomez, 30, of Lowell, Mass., was sentenced yesterday by U.S. District Court Judge Richard G. Stearns to 57 months in prison and three years of supervised release. In January 2015, Gomez pleaded guilty to being a felon in possession of a firearm.
On May 2, 2014, after law enforcement officers determined that Gomez was trafficking firearms, they executed a federal search warrant at 43 Elm Street, Apartment 4, in Lowell, Mass. During a search of the residence, which was used by Gomez and others as a base of operation in an illegal gun trafficking business, officers seized a Remington Arms rifle, a WASR-10 rifle, and a High Standard revolver loaded with nine rounds of ammunition, as well as an additional 193 rounds of ammunition.
During an interview, Gomez admitted to selling 12 to 14 firearms to two men from Boston. Gomez explained that he was the middleman for the transactions and that he found buyers for people looking to sell firearms.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Lowell Police Superintendent William Taylor, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Tobin of Ortiz’s Major Crimes Unit.
Louisville Man Charged with Robbing Seven Pharmacies Located in Jefferson County, KentuckyRead the Press Release
LOUISVILLE, Ky. – A Louisville man was charged today, by a federal grand jury, with robbing seven pharmacies located in Jefferson County, Kentucky, including carrying a firearm during one of the robberies, announced Acting United States Attorney John E. Kuhn, Jr.
Matthew Williams was charged in an eight count indictment with robbing the pharmacies beginning on September 13, 2013 through January 2, 2014, when he was arrested by Metro Louisville Police.
According to the indictment, Williams allegedly robbed the following pharmacies: the CVS Pharmacy located at 3229 Poplar Level Road, Louisville, Kentucky, by means of actual and threatened force, violence, and fear of immediate injury to an employee, on September 13, 2013; the Walgreen’s Pharmacy located at 12101 Shelbyville Road in Middletown, by means of actual and threatened force, violence, and fear of immediate injury to an employee on September 28, 2013, October 26, 2013, December 20, 2013, and January 2, 2014. During the alleged robbery on January 2, 2014, Williams is further charged with carrying a firearm. Additional alleged robberies occurred at the CVS Pharmacy located at 13900 Shelbyville Road, in Louisville, on September 29, 2013, and the Walgreen’s Pharmacy located at 2368 Frankfort Avenue, in Louisville, on November 6, 2013.
If convicted at trial, Williams could be sentenced to no more than 20 years for counts 1-7, and no less than 5 years for count 8. Further, Williams could be required to pay a fine of $2,000,000 and serve a period of supervised release. Kentucky Circuit Court charges against Williams will be dismissed in lieu of the federal charges taken today.
This federal prosecution stems from “Project Recoil,” the ongoing partnership of multiple law enforcement agencies, developed by The U.S. Attorney’s Office for the Western District of Kentucky, to maximize penalties for the most violent repeat offenders, and to reduce violent crime in our community.
This case is being prosecuted by Assistant United States Attorney Thomas W. Dyke, and is being investigated by the Louisville Metro Police Department.
***
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Longtime Advocate Honored for Combating Crimes Against ChildrenRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, presented the Crystal Kipper & Ali Kemp Memorial Award today to Craig Hill, a professional consultant with a long history of combatting crimes against children during many years working in law enforcement as well as through his own organization and the National Center for Missing & Exploited Children.
Today’s award ceremony was part of an annual event hosted by the U.S. Attorney’s Office and VictimNet, a coalition of victim service providers and others committed to meeting the needs of crime victims in Jackson County, in conjunction with the observance of National Crime Victims’ Rights Week. This year’s theme – “Engaging Communities. Empowering Victims” – emphasizes the role of the entire community, individually and collectively, as we support victims of crime and empower them to direct their own recovery.
Hill is a consultant who presents law enforcement training and public lectures in conjunction with the National Center for Missing & Exploited Children, where he formerly served as associate director of law enforcement training and outreach for more than five years.
“Craig Hill has spent his career either directly working in law enforcement, or working to support law enforcement,” Dickinson said. “Some people retire to play golf, or go fishing. When Craig retired as Deputy Police Chief in the Leawood Police Department, he didn’t skip a beat. Craig continued to pursue his passion for protecting children and for equipping and training law enforcement officers and other professionals who are in the trenches combatting these heinous crimes.”
After 33 years in the Leawood, Kan., Police Department, the last five as Deputy Police Chief, Hill went to work for the National Center for Missing & Exploited Children (NCMEC).
“That was a natural progression for him,” Dickinson said, noting that during his tenure with the Leawood Police Department he was a co-founder of The Lost Child Network. The Lost Child Network, where Hill served as president for 14 years, was one of the nation’s first non-profit child resources centers when it was founded in 1984. Hill traveled throughout the United States and parts of Canada to lecture on the crimes committed against children. The Lost Child Network played a role in the recovery of several children who were reported missing, working with local, state and federal law enforcement agencies as well as NCMEC.
The Lost Child Network merged with NCMEC in 1998 to become the Kansas City branch of that national organization and Hill joined NCMEC’s board of directors. In 2005, Hill retired from the police force and became the associate director of law enforcement training and outreach for NCMEC. In that role, he was responsible to provide training in more than 230 cities to local, state and federal law enforcement agencies, prosecutors, parole and probation workers, employees of corrections departments and social services agencies, and child advocacy centers. The training covered the dynamics of the crimes committed against children, tactics used by the offenders, preparing first responders and prevention strategies.
In 2011 Hill formed his consulting company, Craig Hill Consultant, LLC. Hill is also the executive producer for Media Consultant, LLC, which provides development and design for in-service training, print adds, video productions and computer graphics design. Among the firm’s clients is the FBI International Symposium on Agroterrorism.
Hill is a graduate of the FBI National Academy and an active member of the FBI National Academy Associates, Inc.
National Crime Victims’ Rights Week
The Crystal Kipper & Ali Kemp Memorial Award is presented by the U.S. Attorney’s Office each year during the local observance of National Crime Victims’ Rights Week to recognize the outstanding work of an individual or organization in protecting children from exploitation. The award was presented to Hill in memory of Crystal Kipper and Ali Kemp, two young women who were both fatal victims of tragic crimes. Anna Rhea, Crystal Kipper’s mother, and Roger Kemp, Ali Kemp’s father, participated in today’s presentation.
Today’s event at the Power and Light District also featured comments from the Jackson County Prosecutor’s Office and Alvin Brooks of the AdHoc Group Against Crime. The event showcased various local victim service providers and a solidarity walk led by the Kansas City Mounted Patrol and Parents of Murdered Children. An art display featured the work of students of MyARTS.
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The U.S. Attorney’s Office has a dedicated Victim/Witness Unit that serves federal crime victims across the district’s 66 counties. Members of this unit notify victims of significant case events through the Department of Justice’s Victim Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. Victim/Witness personnel accompany victims to court hearings and trials to ensure that victim participation in court proceedings is meaningful and to answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the U.S. Attorney’s Office Victim/Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/.
The Crystal Kipper & Ali Kemp Memorial Award
Crystal Kipper was an 18-year-old Gladstone, Mo., resident who was murdered after her car broke down on Interstate 29, just north of Platte City, on Feb. 24, 1997. Ali Kemp was a 19-year-old Blue Valley North High School graduate who was murdered on June 18, 2002, while she worked at the Foxborough neighborhood swimming pool in Leawood, Kan.
Logan County man sentenced for role in Arch Coal kickback schemeRead the Press Release
CHARLESTON, W.Va. – Scott Ellis, 45, of Holden, West Virginia, was sentenced today by Judge Thomas Johnston to three years of probation and a $3,000 fine announced United States Attorney Booth Goodwin. Ellis had previously pleaded guilty in July of 2014 to structuring, a federal crime that involves the breaking down of cash banking transactions in amounts of $10,000 or less to avoid triggering a financial institution’s reporting requirements to the Internal Revenue Service (IRS). Ellis also admitted that he and his business partner, Stephen Herndon, paid hundreds of thousands of dollars in kickbacks to the general manager of Arch Coal’s Mountain Laurel mining complex, located in Logan County.
Ellis admitted that he owned Tri-State Mine Service, Inc., a vendor at Mountain Laurel that rebuilt mining equipment. Ellis gave Herndon a half interest in Tri-State in approximately March 2011, after Herndon left his position at Mountain Laurel as the warehouse manager. To ensure that Tri-State received the rebuild work from Mountain Laurel, Ellis, later joined by Herndon, engaged in a bid-rigging scheme where, in exchange for a guaranteed winning bid on certain jobs, vendors had to pay cash kickbacks to a person identified in other court documents as David Runyon.
Ellis initially delivered the cash to Herndon, while he worked at Mountain Laurel, or Runyon. While Herndon was the warehouse manager at Mountain Laurel, from approximately 2006 through March 2011, he served as a facilitator of kickback payments by vendors at Mountain Laurel to Runyon.
To generate the necessary cash, Ellis, later joined by Herndon, structured cash withdrawals from various personal and business accounts in amounts of $10,000 or less. They conducted the cash withdrawals in that manner to avoid triggering the bank's obligation to file a currency transaction report with the Internal Revenue Service.
Between early 2009 and approximately March 2011, Ellis structured approximately $163,521.25 in cash transactions. Ellis estimates that almost all of those funds were used to pay cash kickbacks to Runyon, and that he paid approximately $187,000 in cash kickbacks during that time. Between April 1, 2011, and September 30, 2013, Herndon and Ellis, working together, structured approximately $183,853. They estimate that they used almost all of those funds to pay cash kickbacks to Runyon and that they paid approximately $237,000 in cash kickbacks during that period.
Ellis has agreed to forfeit $215,355.85 to the United States, representing a portion of the funds involved in and traceable to structuring.
Today’s sentencing stems from an investigation being conducted by the FBI, IRS Criminal Investigation, United States Postal Inspection Service, and the West Virginia State Police. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution.
Local oil and gas company fined $600,000 for Clean Water Act violationsRead the Press Release
WHEELING, WEST VIRGINIA – Trans Energy, Inc., an oil and gas exploration company based in Pleasants County, West Virginia, was sentenced today to two years of probation and ordered to pay fines totaling $600,000.00 after the company admitted to multiple violations of the Clean Water Act in connection with its natural gas drilling activity, United States Attorney William J, Ihlenfeld, II, announced.
Trans Energy sought to capitalize on Marcellus Share natural gas resources in West Virginia. The company discharged materials such as rock, sand, soil and stone into streams in Marshall County, West Virginia to build large impoundments, or reservoirs of water, to supply water to nearby well sites. The reservoirs of water were subsequently used for Marcellus Shale drilling activity. Trans Energy further failed to properly train and supervise its employees and relied upon the unsubstantiated representations of a nearby property owner when determining whether environmental laws were being followed.
“Natural wetlands are essential for the overall health of the environment and of our communities,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s Criminal Enforcement Program in the Middle Atlantic States. “In addition to providing habitat for hundreds of fish and animal species, wetlands filter and slow the flow of surface water, reducing the impact of flooding. Today’s sentence demonstrates that EPA and its law enforcement partners will remain vigilant in protecting our nation’s wetlands and water supplies.”
Trans Energy admitted that it unlawfully dumped pollutants into Marshall County waterways when the company pled guilty in October 2014 to three counts of “Negligent Discharge of Pollutants without a Permit.” Trans Energy President John C. Corp executed the plea agreement on behalf of the company.
The Clean Water Act, also known as the Federal Water Pollution Control Act, was enacted by Congress to restore and maintain the integrity of the Nation’s waters. It prohibits the discharge of pollutants from a point source into the waters of the United States without a permit. Discharges of dredged or fill material into waters of the United States are prohibited unless authorized by the U.S. Army Corps of Engineers.
Assistant U.S. Attorney David J. Perri and Special Assistant U.S. Attorney Perry McDaniel prosecuted the case on behalf of the government. The U.S. Environmental Protection Agency, Criminal Investigation Division led the investigation.
U.S. District Judge John Preston Bailey presided.
Local Man Pleads Guilty to Credit Card Fraud and Identity Theft ChargesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Dariel Sardinas Lopez (22, Tampa) today pleaded guilty to credit card fraud and identity theft. He faces a maximum penalty of 10 years in federal prison on the credit card fraud charges, followed by two years on the identity theft charges. Sardinas Lopez was indicted on February 5, 2015. His sentencing date has not yet been set.
According to the plea agreement, Sardinas Lopez produced and trafficked in counterfeit credit cards. These fraudulent credit cards were encoded with the numbers and information of victims whose credit cards had been “skimmed” by the defendant and others, after the cards had been used at local gas stations. The victims were often unaware that their information had been stolen. Sardinas Lopez sold these counterfeit credit cards and also used them to purchase merchandise for himself.
This case was investigated by the Financial Crimes Task Force, which includes the United States Secret Service, Florida Department of Law Enforcement, Hillsborough County Sheriff’s Office, and Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Local Man Convicted for Production of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – A federal trial jury convicted Ralph Jason Miller, 32, of Woodville, Florida, of three charges of using a minor in the production of child pornography and one charge of committing these offenses while required to register as a sex offender under the laws of the State of Florida and the United States. The verdict was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, on three occasions, in January, April and July 2012, Miller caused a minor to engage in sexual intercourse and in graphic sexual displays for the purpose of making visual depictions of these activities. Sheriff’s detectives discovered these images when they executed a search warrant on Miller’s residence on December 4, 2013. Miller was required to register as a sex offender at the time of the production of child pornography offenses because he was convicted of sexual battery in Leon County in 2002.
United States District Judge Robert L. Hinkle presided over the jury trial. He set sentencing for July 16, 2015. Because of the prior conviction, Miller may face imprisonment for at least 25 years and a maximum of 50 years on each of the production convictions. He faces an additional term of 10 years’ imprisonment, which must be served consecutively, for being required to register at the time of those offenses.
United States Attorney Marsh praised the work of the Leon County Sheriff’s Office, the Florida Department of Law Enforcement (FDLE), the State Attorney’s Office for the Second Judicial Circuit, and the United States Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), whose joint investigation led to the convictions in this case. This case was prosecuted by Assistant United States Attorney Michael T. Simpson.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Lindsey Man Pleads Guilty to Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CODY DILLON CORDELL, age 27, of Lindsey, Oklahoma, pled guilty to an Information charging him with WIRE FRAUD, in violation of Title 18, United States Code, Section 1343.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Information alleged that on or about March 13, 2013 to on or about March 15, 2013, within the Eastern District of Oklahoma and elsewhere, the defendant, CODY DILLON CORDELL devised and intended to devise a scheme and artifice to defraud Action Petroleum Services Corp. to obtain money and property by means of materially false and fraudulent pretenses, representations and promises.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion. The defendant remains on bond pending sentencing.
The statutory range of punishment is up to 20 years imprisonment, a fine of up to $250,000.00 or both.
First Assistant United States Attorney Doug Horn represented the United States.
Landlords Agree to Settle Claim that They Violated Two Servicemembers’ Federal Right to Break Their Lease when Transferring from JBLMRead the Press Release
The U.S. Department of Justice and Loren and Holland Cohen have entered into a settlement agreement to remedy alleged violations of the federal Servicemembers Civil Relief Act (SCRA), announced Acting U.S. Attorney Annette L. Hayes. The U.S. Attorney’s Office for the Western District of Washington began its investigation after receiving a complaint from Joint Base Lewis-McChord’s (JBLM) Main Legal Assistance Office, alleging that the Cohens violated the SCRA when (1) they refused to return a ($2,150.00) security deposit to their tenants, S.Sgt. Marquis Bines, United States Army, and T.Sgt. Meoisha Bines, United States Air Force, and (2) they demanded all remaining rental payments due under the lease in the amount of $10,750.00, rather than permitting the Bines to terminate their lease several months early and receive their full deposit, as was their right under the SCRA, when they unexpectedly were transferred from JBLM to Shaw Air Force Base in South Carolina.
“The law provides that landlords have a legal obligation to ensure servicemembers can move freely when military duty demands it,” said Acting U.S. Attorney Annette L. Hayes. “Just as our dedicated men and women of the military protect our freedoms overseas, we must protect their interests here at home. The U.S. Attorney’s Office is committed to protecting the housing rights of those who secure the rights of all Americans.”
Under the settlement reached Monday, the Cohens admitted no violation of the law, but agreed to: (1) abide by policies and procedures that ensure that servicemembers who rent the Cohen’s property will be aware, and ensured of their rights under the SCRA; (2) promptly report any servicemember complaints to the United States Attorney’s Office; (3) dismiss their claim for over $10,000.00, brought in Pierce County District Court against the Bines; and (4) pay the Bines $4,000 for their deposit and other financial hardship the Bines suffered.
The Bines entered into a one-year lease to rent the Cohens’ condominium, located in Tacoma, Washington, while they served their country at JBLM. Approximately six months into the lease, the Bines received permanent change of station (PCS) orders from their respective branches and sought, as was their right under the SCRA, to terminate the lease and receive their security deposit. The Cohens claimed that the Bines had not complied with the SCRA’s technical notice of termination provisions and also withheld the security deposit, claiming that the “damage” to the property was ten (10) times the original estimate made during the Bines’ walkthrough. JBLM attorneys advised the Cohens that their interpretation of the SCRA was incorrect and that the calculation of the charges against the deposit was excessive. Ignoring this, the Cohens then claimed that the Bines were in breach of the lease and that the entire remaining balance due under the lease was thereby “accelerated,” in an amount over $10,000. Following a thorough investigation, the U.S. Attorney’s Office concluded that the Cohens unreasonably refused to return the security deposit and that the Cohens illegally demanded further rental payments from the Bines. The Cohens fully cooperated with the United States Attorney’s Office’s investigation and settlement of this matter.
The SCRA provides certain protections to active duty servicemembers who must terminate residential leases to comply with military orders for a permanent change of station or for deployment. Servicemembers who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Interested persons, including landlords, may find additional information about the SCRA and the Justice Department’s enforcement of that law, and other laws protecting servicemembers, at www.servicemembers.gov.
This matter was handled by Assistant United States Attorney and Civil Rights Program Coordinator J. Michael Diaz in the U.S. Attorney’s Office for the Western District of Washington, in collaboration with Housing and Civil Section of the Civil Rights Division of the Justice Department.
Laguna Pueblo Man Pleads Guilty to Federal Misdemeanor Assault ChargeRead the Press Release
ALBUQUERQUE – Lawrence Lockwood, 32, a member and resident of Laguna Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a misdemeanor assault charge.
Lockwood was arrested on Feb. 11, 2015, on a criminal complaint alleging that Lockwood assaulted his intimate partner on Jan. 5, 2015, during a domestic dispute by shoving her onto a bed and restricting her movement.
During today’s proceedings, Lockwood pled guilty to a misdemeanor information charging him with simple assault. In entering his guilty plea, Lockwood admitted that on Jan. 5, 2015, he forcefully pushed the victim at a location within the Pueblo of Laguna in Cibola County, N.M.
This case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department and is being prosecuted by Assistant U.S. Attorneys Novaline Wilson and David Adams.
It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Killeen Area Man Gets 30 Years for Sex Trafficking of A MinorRead the Press Release
HOUSTON – Bobby Barrett, aka “Black,” 31, has been ordered to federal prison following his convictions of sex trafficking of a minor who was under 18 with force, fraud or coercion, and transporting her across state lines for the purpose of engaging in prostitution, announced U.S. Attorney Kenneth Magidson. The federal jury convicted the Killeen man after a four-day trial and less than two hours of deliberation on July 17, 2014.
Today, U.S. District Judge Keith P. Ellison, who presided over the trial, handed Barrett 360 months for the sex trafficking and 360 months for the transportation convictions, respectfully. The sentences will be served concurrently for a total of 30 years in federal prison. He was further ordered to serve 10 years on supervised release following completion of the prison term and must also register as a sex offender.
The federal charges brought against Barrett were the result of an investigation conducted by the Houston Innocence Lost Task Force, led by the FBI and the Shreveport, La., Police Department (SPD). The investigation began in October 2013 after the victim was detained during an enforcement operation in Houston. Barrett bonded her out and then transported her across state lines to Louisiana where ads for prostitution services were posted. SPD arrested her in another operation less than two weeks later along with Barrett and another woman.Testimony at trial revealed Barrett posted no less than 26 Internet prostitution ads from his phone. Barrett rented hotel rooms for the prostitution dates and supplied the victim and another woman with marijuana. The victim, a 17-year-old minor, testified she was the person depicted in seductive settings for the purpose of some of the advertisements for prostitution posted online. She said that at the time of the incidents, Barrett not only knew she was 17, but her High School identification was found in his pocket. Moreover, the minor testified she feared Barrett and that he cut her face during an altercation just prior to his arrest.
In addition to the victim’s description, an expert further testified as to how this subculture operates. Barrett took all monies the minor victim earned.
Forensic analysis of Barrett’s cell phone conducted by the FBI revealed pictures of multiple victims that were used in Backpage ads posted on the Internet. Phone records also confirmed that Barrett posted multiple ads on Backpage, including at least two minors under the age of 18. Hotel records verified that Barrett traveled out of state with the victims.
Barrett was found guilty of one count each of sex trafficking of a minor and transportation of a minor with intent to engage in criminal sexual activity. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant U.S. Attorneys Julie N. Searle and Sherri L. Zack, 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."
Justice Department Sues San Francisco Enrolled Agent to Bar Promotion of Abusive Tax Avoidance Schemes and from Preparing Tax Returns for OthersRead the Press Release
The United States filed a complaint to bar a San Francisco enrolled agent and tax return preparer from implementing, facilitating and promoting allegedly abusive tax shelters and tax avoidance schemes, the Justice Department announced today.
According to the complaint, which was filed in the U.S. District Court for the Northern District of California, one of the abusive tax avoidance schemes that Timothy Conn Vu promoted was a scheme that illegally avoided corporate income taxes on gains received from the sale of corporate assets, a so-called intermediary transaction tax shelter. Additionally, Vu promoted a scheme that illegally avoided taxes on the gains from selling transferrable state tax credits (the State Tax Credit tax shelter), which real estate project owners typically sell to raise money to develop real estate projects, according to the suit.
According to the complaint, in many instances Vu served as the sole officer, director and/or manager of the five companies that were used to carry out these schemes and he signed many of the documents on behalf of those companies.
In one version of the intermediary transaction described in the complaint, a company that Vu managed allegedly bought all of the stock of a closely held corporation shortly after that corporation had sold its assets to a third party. The asset sale generated capital gains tax. The complaint alleges that, once it owned the stock, the company that Vu managed allegedly offset the tax liability from the asset sale using a purported bad debt deduction based on bogus losses from a distressed asset debt (DAD) and/or distressed asset trust (DAT) tax shelter.
According to the suit, Vu, as an officer of the companies perpetrating these schemes, also signed and then filed with the Internal Revenue Service (IRS) many of the corporate income tax returns that claimed bogus losses to offset the income on which the corporations should have paid substantial federal taxes.
The complaint alleges that Vu’s participation in these abusive tax schemes has generated more than $515 million in bogus tax deductions that have led to federal income tax deficiencies of at least $129 million. For his role in the abusive transactions, Vu allegedly earned $3 million in compensation, according to the complaint. The lawsuit seeks to stop Vu from promoting these schemes in the future and to permanently bar him from preparing tax returns for others.
The promotion of tax schemes is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Sues Fort Worth, Texas, for Disability DiscriminationRead the Press Release
The Justice Department today filed a lawsuit against the city of Fort Worth, Texas, alleging violations of the Fair Housing Act and the Americans with Disabilities Act. The lawsuit, filed in U.S. District Court for the Northern District of Texas, charges that Fort Worth discriminated against persons with disabilities based on its treatment of a group home for persons recovering from drug and alcohol addiction, including the city’s failure to grant a reasonable accommodation to the owner of the group home.
The suit seeks a court order prohibiting future discrimination by Fort Worth and requiring Fort Worth to make a reasonable accommodation to permit the continued operation of “Ebby’s Place” as a group home for up to eight individuals with disabilities. It also seeks monetary damages to compensate victims, as well as payment of a civil penalty.
This lawsuit arose as a result of a complaint filed with the U.S. Department of Housing and Urban Development (HUD) by Ben Patterson, who through Ebby’s Place LLC, owns and operates the group home known as Ebby’s Place.
“The Fair Housing Act and the Americans with Disabilities Act seek to ensure that individuals with disabilities can live in communities of their choice without facing discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We will continue our vigorous enforcement efforts to make certain that persons with disabilities are granted their rights under federal law.”
“While we appreciate the City’s cooperation with this investigation, its refusal, as a governmental entity, to consider those recovering from drug or alcohol addiction as persons with disabilities is at odds with federal law,” said Acting U.S. Attorney John Parker of the Northern District of Texas. “Simply put, the residents of Ebby’s Place are deserving of the same protections as persons with any other disability.”
“Through our Office of Fair Housing and Equal Opportunity, HUD is working to ensure that housing options for persons with disabilities are not limited by restrictive zoning rules,” said Assistant Secretary Gustavo Velasquez of HUD’s Fair Housing and Equal Opportunity Office.
Fighting illegal housing discrimination is a top priority of the Justice Department. The Federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Title II of the Americans with Disabilities Act prohibits discrimination on the basis of disability by public entities. Visit www.usdoj.gov/crt for more information about the Civil Rights Division and the laws it enforces. Additional information about the Fair Housing Act is available at www.HUD.gov. Additional information about the Americans with Disabilities Act is available at www.ADA.gov.
Justice Department Returned over $4 Billion to Victims of Crime Through the Asset Forfeiture Program Between 2002 and 2015Read the Press Release
Marking National Crime Victims’ Rights Week this week, Attorney General Eric Holder and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced that the Justice Department’s Asset Forfeiture Program has returned more than $4 billion in civilly and criminally forfeited funds to crime victims since fiscal year 2002, with $723 million paid to over 150,000 crime victims in the last three years alone. The funds were distributed through the victim compensation program managed by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS).
“The Justice Department’s victim compensation program is an integral part of the asset forfeiture program and our efforts to take the profits out of crime, to restore assets to their rightful owners, and to provide real and meaningful justice to the victims of wrongdoing,” said Attorney General Holder. “The scale and scope of the returns made to victims under the program in recent years have been especially impressive. And going forward, as we continue our ongoing review of our asset forfeiture practices, we are committed to taking all appropriate measures to use this tool fairly, effectively, and with the greatest possible benefit to the American people.”
“The return of forfeited funds to crime victims is a priority of the civil and criminal forfeiture actions brought under the Asset Forfeiture Program,” said Assistant Attorney General Caldwell. “Success such as this would not be achievable without the efforts of prosecutors in the Criminal Division and U.S. Attorneys’ Offices around the country, as well as the many federal, state and local law enforcement agents contributing time and resources to these investigations. Make no mistake: forfeiture not only takes the money out of crime, but it’s among our most powerful tools to make victims whole.”
AFMLS partners with U.S. Attorneys’ Offices, federal law enforcement agencies, federal regulatory agencies, court-appointed receivers, private claim administrators, and private class action attorneys to return forfeited assets to crime victims.
Recent noteworthy cases in which victims were compensated for their losses with forfeited assets include:
$62.2 Million to Victims of MoneyGram Fraud
United States v. MoneyGram International Inc. (Middle District of Pennsylvania)
On Nov. 9, 2012, MoneyGram International Inc., a global money services business, entered into a deferred prosecution agreement (DPA) with the Justice Department. In doing so, MoneyGram admitted that corrupt MoneyGram agents across the country engaged in various consumer fraud schemes, including “grandparent” schemes in which a caller pretended to be the victim’s grandchild requesting money, and “advance fee” schemes requiring payment of fees to receive purported lottery winnings. These schemes resulted in victims sending over $100 million via MoneyGram to the criminals, and that amount was administratively forfeited as part of the DPA by the U.S. Postal Inspection Service. Over 22,000 victims who were fraudulently enticed to send money through corrupt agents have received a total of $62.2 million and been fully compensated for their losses.
$25.5 Million to Victims of Scott W. Rothstein
United States v. Scott W. Rothstein (Southern District of Florida)
From 2005 through 2009, attorney Scott W. Rothstein operated a massive Ponzi scheme through his now-defunct Fort Lauderdale law firm. Over 400 victims attempted to invest more than $1 billion in purported confidential civil settlement agreements upon Rothstein’s promise of substantial future payouts. In reality, the settlement agreements did not exist, but were part of an elaborate scam in which Rothstein either retained the funds or used them to pay earlier investors. Prosecutors forfeited more than $28 million in bank accounts, real property, vehicles, jewelry and investment accounts as proceeds of the fraud. Through a combination of the forfeiture proceeds, and other legal efforts, qualifying victims have received over $500 million in recoveries to date.
$14.6 Million to Victims of Allen Hilly
United States v. $7,599,358.09 (District of New Jersey)
In 2007, Allen Hilly was indicted on charges that he fraudulently obtained more than $18 million in federal tax and workers’ compensation withholdings. When Hilly died before his case could proceed to trial, prosecutors initiated civil forfeiture proceedings to pursue the fraud proceeds. As a result of the successful civil forfeiture, in 2014, over $14.6 million was returned to nine victims, including the Internal Revenue Service and the Illinois Department of Insurance, which paid out claims to injured employees who otherwise would not have received payments due to Hilly’s fraud.
$11.7 Million to the Centers for Medicare and Medicaid Services
United States v. One Helicopter and United States v. One Parcel (Southern District of Florida)
Brothers Luis, Carlos and Jose Benitez were indicted in May 2008 for their alleged involvement in a $110 million scheme to defraud Medicare through the use of 11 South Florida clinics they owned and operated. According to papers filed in court, the Benitez Brothers filed false claims and caused others to pay kickbacks to Medicare recipients who fraudulently claimed they received HIV infusion services at the clinics in order to obtain Medicare benefits in excess of $84 million. After being charged with health care fraud and money laundering, the brothers fled to Cuba and remain fugitives. The department filed three civil forfeiture actions that, to date, have resulted in the recovery of property, including a helicopter, hotel, a water park, 30 vehicles, a car rental agency, houses, condos, and apartments. Thus far, $11.7 million is available to return to Medicare as compensation for losses resulting from the fraud.
$10 Million to Victims of Traders International Return Network Fraud
United States v. David Merrick (Middle District of Florida)
Between 2008 and 2009, David Merrick operated a Panamanian-based corporation called Traders International Return Network (TIRN), which claimed to be a legitimate private investment club with offices located in Dubai, Kuala Lumpur, Malaysia and Switzerland. Court filings detail how Merrick created shell corporations, disseminated false monthly dividend reports, and recruited investors through a website and in person. Over 770 victims suffered $12 million in losses as a result of Merrick’s scheme. Approximately $10 million in forfeited funds have been returned to date to the victims.
$9.2 Million to the City of Dixon, Illinois
United States v. Rita A. Crundwell (Northern District of Illinois); United States v. Have Faith in Money, et al. (Northern District of Illinois)
For over 20 years, Rita Crundwell used her position as comptroller for the City of Dixon, Illinois to embezzle more than $53 million from the city. An investigation revealed that Crundwell used the embezzled funds to pay for numerous personal and business expenses, including the establishment of a large horse farming and showing operation. Crundwell was convicted of wire fraud and forfeited over 500 assets, including more than 300 horses and associated show items. The U.S. Marshals Service assumed responsibility for the care of the horses seized in 13 states, which included overseeing the births of more than 80 foals. Ultimately, liquidation of the forfeited assets generated $9.2 million, which has been paid to the City of Dixon.
$8.8 Million to Victims of Zaveri Oil and Gas Fraud
United States v. Ashvin Zaveri (Western District of New York)
Ashvin Zaveri was charged with orchestrating a Ponzi scheme that enticed investors to invest in sham oil and natural gas explorations in Tennessee and Kentucky. Due to his untimely death, the criminal case against Zaveri was dismissed. However, the U.S. Attorney’s Office commenced a civil forfeiture action against the proceeds of Zaveri’s life insurance policy. Approximately $8.8 million obtained through civil forfeiture was returned to more than 100 victims of the scheme.
$4.5 Million to Victims of Xybernaut Fraud
United States v. Zev Saltsman (Eastern District New York)
Xybernaut Corporation, headquartered in Northern Virginia, was a provider of wearable mobile computing hardware, software and services. In October 2007, Xybernaut’s founders were indicted for securities fraud and money laundering in connection with a kickback scheme. Hundreds of millions of Xybernaut shares were issued at below market prices to several purchasers in exchange for kickbacks paid to the founders. Approximately $4.5 million in assets forfeited from various defendants has been distributed to over 12,000 victims.
$4.5 Million to South Dakota Health Care Provider
United States v. Gerald Lloyd Larson (District of South Dakota)
Gerald Larson was convicted of embezzling funds from his employer, a South Dakota health care provider. During the course of his scheme, he embezzled almost $5 million. Shortly after his conviction in January 2015, the U.S. Attorney for the District of South Dakota requested a transfer of approximately $4.5 million in forfeited assets to the Clerk of Court to compensate the victim.
Priceless Artifact Returned to Harvard
United States v. One Qing Dynasty Jadeite Lobed Censer & Cover (District of Massachusetts)
In 1979, an 18th Century Qing Dynasty jade incense holder was stolen from the Harvard Art Museums. In 2009, the artifact resurfaced at a Hong Kong auction house, which ran a search in the Art Loss Register database and discovered that the jade censer being offered for sale matched the censer stolen from Harvard. The Art Loss Register then notified U.S. Immigration and Customs Enforcement officials of the censer’s reappearance. Thereafter, the U.S. Attorney’s Office commenced a civil forfeiture action and obtained a civil warrant to seize the artifact. After successful civil proceedings, the United States returned the stolen artifact to the Harvard Art Museums in January 2014, over 30 years after the original theft.
For additional information about the Department of Justice’s victim compensation program, please visit http://www.justice.gov/criminal/afmls/victims/.
Justice Department Reaches Agreement with Madison County, New York, to Make Government Documents AccessibleRead the Press Release
The Department of Justice today announced an agreement with Madison County, New York, to remedy accessibility issues that violate the Americans with Disabilities Act (ADA). This year marks the 25th anniversary of the ADA, which the Civil Rights Division plays a critical role in enforcing.
Madison County and the department reached an agreement under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the ADA. Under the agreement, Madison County is required to, among other things, ensure its communications with people with disabilities are as effective as its communications with people without disabilities. This includes making documents available in alternate accessible formats such as Braille, large print, recordings and accessible electronic format. Under the agreement, Madison County is also required to reasonably modify its policies, practices and procedures to ensure equal access to its programs, services and activities. County employees will also receive training on the requirements of the ADA and appropriate ways of serving people with disabilities.
“No one should be in fear of going hungry and or being unable to take their child to the doctor because their disability prevented them from applying for benefits for which they may be eligible,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Many people with disabilities are low-income and are eligible for public benefits. The ADA requires state and local governments to make their communications and services accessible to all people, including those with disabilities.”
The agreement with Madison County will provide people with disabilities with accessible documents they need to complete to receive benefits. Chris Rifendifer, who is legally blind, is one of the people who will benefit from this agreement. Rifendifer relies on Medicaid and food stamps to help take care of himself and his family. However, the county provided him with forms he could neither read nor complete in order to receive his benefits. When he asked county staff for help filling out the forms, Rifendifer was denied any assistance and told to ask someone else to do it for him.
Experiences like Rifendifer’s, however, will become a thing of the past over the next three years under the PCA agreement. Rifendifer shared his story on the Justice Department blog today, where each month of 2015, the department is highlighting how PCA agreements have an impact on the everyday lives of people with disabilities.
In addition to addressing the issues faced by Rifendifer, the settlement agreement entered into by the department and Madison County requires the county to comply with the ADA’s architectural accessibility requirements by remediating existing buildings, when it builds new buildings and when it alters its buildings. Additionally, it requires the county to publish and distribute ADA information, use the New York telephone relay service as a key means of communicating with individuals who are deaf, hard-of-hearing or have speech impairments, conduct ADA training and submit to monitoring of its compliance with the agreement by the department.
For more information about the ADA, today’s agreement, the PCA initiative, individuals may access the ADA web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Justice Department Asks Federal Court to Permanently Shut Down Liberty Tax Service Franchise OwnerRead the Press Release
The United States filed a complaint asking a federal court in Detroit to bar a Liberty Tax Service franchise owner and his companies based in Illinois and Michigan from preparing federal tax returns for others, the Justice Department announced today.
The civil complaint against Syed N. Ahmed and his businesses, Nasah Inc., Millinium [sic] Financial Solutions Inc., Mars Inc.-Hamtramck, and Mahad Inc., was filed in the U.S. District Court for the Eastern District of Michigan. The complaint alleges that Ahmed operates at least 10 Liberty Tax Service franchise locations.
According to the suit, the defendants improperly obtain inflated tax refunds and refundable credits for customers by preparing tax returns that include, among other things, false or inflated Schedule C (Profit or Loss From Business) income and expenses, bogus dependents, false filing statuses, improper education credits and false itemized deductions.
For example, the complaint alleges that one of defendants’ tax return preparers fabricated a driving business without the customer’s knowledge and reported thousands of dollars of expenses for that business that the customer did not incur. The false expenses enabled the customer to receive an earned income tax credit that she was not otherwise entitled to receive, according to the suit.
The lawsuit states that the defendants prepared more than 17,000 federal income tax returns between 2010 and 2013. Based on audit adjustments the Internal Revenue Service (IRS) has made to tax returns prepared and filed by the defendants between 2010 and 2013, the defendants’ conduct has cost the U.S. Treasury approximately $2.8 million, according to the suit.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Applauds Settlement to Improve Juvenile Right to Counsel in GeorgiaRead the Press Release
The Superior Court of Fulton County, Georgia, signed a consent decree today in N.P. et al. v. State of Georgia, et al., a class action suit asserting that the public defense system in the Cordele Judicial Circuit is so underfunded and poorly staffed that indigent adults and juveniles accused of committing criminal acts are routinely denied their right to legal representation. In March 2015, the Justice Department filed a statement of interest in the case, reaffirming the department’s commitment to enforcing the due process rights of children generally and, in particular, the need for children to consult with an attorney prior to waiving their Constitutional right to counsel. One month after the department’s filing, the parties, with the assistance of U.S. Attorney Michael Moore of the Middle District of Georgia, who served as mediator, resolved the case and submitted a joint consent decree to the court.
The proposed settlement, if implemented, would mark a major step forward in the safeguarding the right to counsel for both juveniles and adults. Specifically, the settlement would, among other things, require:
-
the representation of children in juvenile court in the circuit to be by a lawyer who specializes in juvenile law and childhood and adolescent development;
-
on notice from the court, a public defender from the juvenile division shall speak to any indigent juvenile who seeks to waive counsel and describe services of counsel available to the juvenile and the benefits of representation;
-
all people, including children, arrested in the circuit and detained in its jails to consult with a lawyer in no more than three business days;
-
the size of the Cordele Circuit Public Defender Office to nearly double, increasing from two full-time assistant public defenders to four, and from one full-time investigator to two; and
-
significant and relevant training requirements for public defenders.
“This settlement recognizes that independent, ethical, and zealous counsel are essential to protecting the due process rights of juveniles,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Civil Rights Division will continue to ensure that juveniles across the nation are provided the vital protection of counsel.”
“I am pleased to have played some small part in bringing this matter to a resolution that will benefit the people of the Cordele Judicial Circuit for years to come,” said U.S. Attorney Moore. “As lawyers, all of us, including the named defendants in this case, understand the importance of providing representation to those who have been charged with a criminal or delinquent act. This agreement puts meat on the bones of that process, and guarantees that individuals who are facing criminal cases in the Cordele Circuit will not only have representation, but truly meaningful representation as they navigate the judicial system. This resolution is good for the accused, it is good for the court system, and it is good for the people of the state of Georgia. I want to thank my friends, Attorney General Sam Olens and Solicitor General Britt Grant, for helping all involved reach a consensus in this matter, and I want to acknowledge the courageous filing on behalf of the plaintiffs that brought this to our attention by Steve Bright.”
“We congratulate the parties on coming together and taking the steps necessary to improve justice for both adults and juveniles in the Cordele Judicial Circuit,” said Director Lisa Foster of the Office for Access to Justice. “The agreement upholds the core principles of the Sixth and Fourteenth Amendments and represents a model for the rest of Georgia and for the country.”
In N.P., the plaintiffs alleged that the public defense system in the Cordele Judicial Circuit had been so underfunded and poorly staffed that indigent adults and juveniles accused of committing criminal acts were routinely denied their right to legal representation. In its statement of interest, the department focused solely on the due process rights of children accused of delinquency. The department applied In re Gault and other case law to identify procedural safeguards that must be provided to children who appear before the court. The Civil Rights Division has worked to expand access to counsel in juvenile delinquency proceedings. For example, the division is currently enforcing an agreement in Shelby County (Memphis), Tennessee, that, among other remedies, requires the county and the local juvenile court to develop and support a juvenile public defense system. The division is also engaged in a federal suit against the City of Meridian, Lauderdale County, Mississippi, two youth court judges in Lauderdale County, and the state of Mississippi, alleging that they are violating the due process rights of juveniles in Meridian who are referred for law enforcement action by public schools.
In its statement of interest, the department asserted that children are denied their right to counsel not only when an attorney is entirely absent, but also when an attorney is available in name only. It provided the court with a framework to assess the plaintiffs’ claim that the defendants are depriving young people accused of delinquency of their right to counsel. As the department summarized in the statement of interest, “due process requires that every child who faces the loss of liberty should be represented from their first appearance through, at least, the disposition of their case by an attorney with the training, resources and time to effectively advocate the child’s interest. If a child decides to waive the right to an attorney, courts must ensure that the waiver is knowing, intelligent, and voluntary by requiring consultation with counsel before the court accepts the waiver.”
The case was filed in 2014 and brought by indigent adults and juveniles who faced criminal and delinquency charges in the Cordele Judicial Circuit.
-
Jury Convicts Blind Defendant of RobberyRead the Press Release
PHILADELPHIA – A federal jury today convicted Mark Sanders, 23, of Philadelphia, PA, in a motorcycle robbery that rendered the defendant blind. On June 26, 2011, Sanders and two other men responded to a Craigslist ad for a dirt bike for sale. Sanders and a co-conspirator met the seller at an agreed-upon location on Green Street in Philadelphia. The co-conspirator purported to inspect the dirt bike, asking the seller to start the bike and rev the engine. He then told Sanders to pay for the motorcycle but Sanders, instead, pulled a firearm from his waistband, pointed it at the seller and his companions and ordered them to get on the ground. Sanders’ conspirator commandeered the dirt bike and took off. A relative of the seller’s was at home, across the street, saw the robbery happening, and took his own, legally-owned, handgun to the scene. When Sanders would not respond to the relative’s order to stop and, instead, turned to point his gun at the seller’s relative, the seller’s relative fired his weapon, shooting Sanders in the temple rendering him blind.
The jury deliberated for two hours before finding Sanders guilty of conspiracy to commit robbery of a motor vehicle, robbery of a motor vehicle, using and carrying a firearm during a crime of violence, and possession of a firearm by a convicted felon.
U.S. District Court Judge Juan R. Sanchez has not yet scheduled a sentencing hearing. Sanders faces a potential maximum sentence of life in prison with a mandatory sentence of five years.
The case was investigated by the FBI and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorneys Arlene Fisk and Eric Boden.
Joplin Man Sentenced to 12 Years for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
David Michel McCowan, 26, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years and seven months in federal prison without parole, which is the longest sentence recommended under the federal sentencing guidelines. The court also ordered McCowan to serve a lifetime of supervised release following incarceration.
On Oct. 9, 2014, McCowan pleaded guilty to receiving and distributing child pornography over the Internet.
According to court documents, an officer with the Southwest Missouri Cyber Crimes Task Force identified McCowan’s computer as utilizing a peer-to-peer file-sharing program to download and share child pornography over the Internet. Officers executed a search a warrant and seized McCowan’s computer, which contained images of child pornography.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Southwest Missouri Cyber Crimes Task Force and the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Johnstown Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distribution of cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
Willie Gene Gulley, Jr., 46, of Johnstown, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Aug. 18, 2014, Gulley distributed less than 28 grams of cocaine base.
Judge Gibson scheduled sentencing for Sept. 4, 2015, at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Gulley.
Jicarilla Apache Man Sentenced for Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Terrance Julian, 30, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., was sentenced today in federal court in Albuquerque, N.M., to 18 months in federal prison followed by three years of supervised release for his federal assault conviction.
Julian was arrested on Aug. 21, 2014, on an indictment alleging that on Oct. 14, 2012, he assaulted a woman with a dangerous weapon, and brandished a firearm in relation to a crime of violence. The indictment alleged that Julian committed the crimes on the Jicarilla Apache Reservation in Rio Arriba County, N.M.
On Nov. 26, 2014, Julian pled guilty to Count 1 of the indictment charging him with assault with a dangerous weapon. In entering his guilty plea, Julian admitted assaulting his intimate partner, a Jicarilla Apache woman, by striking her with a rifle.
This case was investigated by the Jicarilla Apache Tribal Police Department and was prosecuted by Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Jacksonville Man Sentenced to More Than 17 Years in Federal Prison for Advertising Child PornographyRead the Press Release
Jacksonville, Florida – Senior United States District Judge Harvey E. Schlesinger has sentenced James Patrick Foreman (44, Jacksonville) to 17 years and 6 months in federal prison for advertising child pornography. Foreman was also ordered to serve a 15-year term of supervision, and to register as sex offender following his release. He pleaded guilty on December 16, 2014, and has been detained since his arrest in October 2014.
According to court documents, an FBI agent began an undercover investigation to identify individuals in northeast Florida who had access to and/or were trading images and videos depicting child pornography over the Internet. The agent determined that a computer in that area was hosting and trading images of child pornography using a peer-to-peer file sharing program. The subscriber information for this computer was traced to Foreman’s residence in Jacksonville.
On October 1, 2014, a federal search warrant was executed at Foreman’s residence. When interviewed, Foreman admitted that he had downloaded child pornography involving children of all ages, and had seen "1, 2, and 3-year-old" child pornography. He also admitted to exchanging passwords with other users, advising others as to the type of material that he was looking for, and allowing other users to browse his collection of child pornography.
Forensic analyses of Foreman’s computer revealed that it contained at least 500 videos and 1,500 images depicting child pornography, including a video depicting a toddler being sexually assaulted. Logs of online conversations between Foreman and others discussing exchanges of child pornography were also found during the search.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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 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.justice.gov/psc.
Jacksonville Man Charged in $2.1 Million Fraud SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Andrew A. Rooks (58, Jacksonville) with two separate conspiracies to commit mail fraud and wire fraud, and ten counts of wire fraud. He faces a maximum penalty of 20 years in federal prison on each count. The indictment also notifies Rooks that the United States is seeking a money judgment in the amount of approximately $2.1 million, which represents the proceeds of the fraud.
Rooks was arrested and made his initial appearance in federal court today. He was released on bond and an arraignment has been scheduled for Monday, April 27, 2015.
According to the indictment, from 2001 until July 2011, Rooks worked for Sea Star Line, LLC, in its Jacksonville office. Sea Star transports goods by vessel in interstate and foreign commerce and has operations at the Port of Jacksonville. Rooks last served as the assistant vice president of operations. The indictment alleges that, beginning no later than November 2005, Rooks authorized the payment of phony invoices submitted on behalf of co-conspirator Keith Beavers. The invoices were for container and equipment decals that were never provided to Sea Star. The indictment further alleges that, beginning around the same time, Rooks carried on a second conspiracy. He allegedly authorized the payment of phony invoices to two companies controlled by Russell Cody. The invoices were for inspection and transportation services of Sea Star’s containers and equipment. They were false because those services were never provided by Tiburon Transportation Services or Lancer Logistics, which were the front companies controlled by Cody. Instead, the indictment alleges that Beavers and Cody made kickback payments to Rooks, and to a company controlled by Rooks. The payments were approximately 40 to 60 percent of the amount paid by Sea Star on the phony invoices.
The indictment also alleges that after Rooks was terminated by Sea Star, he got a job with another Jacksonville company, Trailer Bridge, Inc., and continued the conspiracies. Trailer Bridge paid $107,000 as a result of phony invoices.
In separate cases, Beavers and Cody previously pleaded guilty for their roles in the conspiracies, and are currently awaiting sentencing. The sentencing hearings are scheduled in July 2015.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville office of the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Dale Campion.
Indictment Charges Trio in Counterfeit Credit Card OperationRead the Press Release
PHILADELPHIA - Rahim Henderson, 38, Tian Larode, 34, and Waliyda Henderson, 33, all of Philadelphia, PA, were charged by indictment, unsealed today, with running a counterfeit credit card manufacturing operation, announced United States Attorney Zane David Memeger. All three defendants were charged with conspiracy, wire fraud, and access device fraud. Rahim Henderson was also charged with multiple counts of aggravated identity theft.
According to the indictment, Rahim Henderson manufactured counterfeit credit cards and he and his co-conspirators used them at commercial establishments in the Philadelphia region.
If convicted of all charges, Rahim Henderson faces a mandatory minimum term of two years in prison with a maximum statutory sentence of 74 years in prison, a fine of up to $3 million, a special assessment of $1,200, and three years of supervised release; Tian Larode faces a maximum statutory sentence of 35 years in prison, a fine of up to $750,000, a special assessment of $300, and three years of supervised release; and Waliyda Henderson faces a maximum statutory sentence of 35 years in prison, a fine of up to $750,000, a special assessment of $300, and three years of supervised release.
The case was investigated by the United States Secret Service and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney James A. Petkun.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Independence Man Sentenced to 15 Years for Credit Card FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for using stolen credit cards that he obtained from automobile burglaries.
Jeffery M. Haywood, 44, of Independence, was sentenced by U.S. District Judge Dean Whipple to 15 years in federal prison without parole, which is the statutory maximum penalty for this offense, less credit for time served on a related state case.
On Sept. 22, 2014, Haywood pleaded guilty to using a stolen credit card with the intent to defraud.
According to court documents, the victim left her purse in her vehicle when she parked at the Overland Park Racquet Club in Overland Park, Kan., at approximately 7 p.m. on Nov. 25, 2012. When she returned to her vehicle at approximately 8:45 p.m., she found that a window had been smashed and her purse was gone. The purse contained several credit cards, including an American Express card. She immediately called American Express to report the card stolen and learned that more than $3,000 worth of unauthorized charges had already been made on her account at several local businesses in the past two hours, as well as a ninth attempted charge.
A loss prevention officer at a Price Chopper store provided investigators with a surveillance photograph of a female who had conducted the fraudulent transaction at that business. The surveillance photo was published in the news media and an anonymous caller identified the suspect, who was not charged in this case. She described an auto burglary ring that included Haywood and others.
The investigation revealed that Haywood was responsible for at least 10 additional automobile burglaries in which purses were taken and credit or debit cards stolen, with a total loss of more than $10,000.
This case is being prosecuted by Assistant U.S. Attorney John E. Cowles. It was investigated by the Kansas City, Mo., Police Department and the Overland Park Police Department.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LUIS FERNANDO MARTINEZ, age 40, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about March 4, 2015, MARTINEZ was found in the United States after having been officially deported and removed on or about February 1, 2013.
MARTINEZ faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Helen G. Berrigan set sentencing for June 17, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Harvey Woman Pleads Guilty to Conspiring to Steal $68,000 in Federal Housing AssistanceRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRENISE DEBOUE MURPHY, age 52, of New Orleans, pled guilty today to a one-count Bill of Information charging her with conspiring to commit theft of government funds.
According to court documents, MURPHY submitted an application to receive housing assistance from the Jefferson Parish Housing Authority (“JPHA”) through the Housing Choice Voucher Program (“HCVP”). MURPHY listed her family composition as she, her son, and her daughter. The defendant did not include her husband, who owned the residence in which they lived, in her family composition. As a result of that representation, as well as yearly recertification paperwork she filed that indicated that she was unmarried and that hid the fact that her “landlord” was actually her husband, the JPHA provided housing assistance on behalf of MURPHY between September 2003 and September 2012, in the amount of approximately $68,593.00.
MUPRHY faces a maximum term of imprisonment of five years, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Stanwood R. Duval, Jr. set sentencing on August 12, 2015.
U.S. Attorney Polite praised the work of the U.S. Department of Housing and Urban Development – Office of the Inspector General in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Trenise Deboue Murphy Factual Basis
Hagerstown Woman Sentenced to over Three Years in Prison for Distribution of Heroin Resulting in an Overdose DeathRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Heather Lynn Koons, age 33, of Hagerstown, Maryland today to 37 months in prison, followed by three years of supervised release, for distribution of heroin to an individual, resulting in his death from a heroin overdose. Judge Bennett also ordered Koons to pay restitution of $3,484 to the victim’s family.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Washington County Sheriff Douglas W. Mullendore.
According to her plea agreement, on October 19, 2012, Koons distributed approximately one gram of heroin to two individuals. One of the individuals, Daniel Shorten, died later that evening of a heroin overdose. Following Shorten’s death, Koons and the other individual exchanged text messages and had a series of phone conversations about the overdose. During one of the phone calls Koons instructed the individual to delete text messages from her phone and to refrain from contacting Koons for two weeks. During a recorded phone conversation on October 23, 2012, Koons admitted that she distributed heroin to Shorten and the other individual prior to Shorten’s death.
United States Attorney Rod J. Rosenstein praised the DEA and Washington County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted the case.
Former Walnut Creek Investor Sentenced to over Four Years Imprisonment in Real Estate Fraud SchemeRead the Press Release
OAKLAND – Benny Chetcuti, Jr. was sentenced yesterday to 51 months in prison, and ordered to pay $21,823,526.10 in restitution, as well as forfeit $3,968,995 in proceeds obtained from a multi-year real estate investment fraud scheme, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Mr. Chetcuti, 60, of Walnut Creek, California, pleaded guilty on October 21, 2014, to two counts of wire fraud. According to the plea agreement, Mr. Chetcuti admitted that between 2007 and 2010, he defrauded private investors who loaned him money under the belief that their loans were backed by equity in real property. In fact, Mr. Chetcuti misrepresented aspects of many of the loans including how much equity was available to secure the loans, the amounts and seniority of loans already tied to the properties, and how the loans were used. He also misled investors about whether their loans were recorded through deeds of trust.
Mr. Chetcuti, was indicted by a federal grand jury on March 27, 2014. According to the indictment, Mr. Chetcuti operated a real estate investment firm, Chetcuti & Associates, since 1998. Chetcuti & Associates was in the business of purchasing and flipping homes for resale after renovation and was funded in large part by loans from private individuals. To carry out his scheme, Mr. Chetcuti used a variety of tactics to misrepresent the equity that supposedly backed his loans. Among the tactics he used were forging deed recordings, forging letters supposedly written by institutional lenders and title company officers, and directing others to impersonate escrow officers. The indictment charged Mr. Chetcuti with two counts of wire fraud in violation of 18 U.S.C. § 1343.
The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge. The Court found that Mr. Chetcuti’s fraudulent scheme caused more than $3.9 million in losses, attributable to 21 victims. In addition, the Court ordered Mr. Chetcuti to pay more than $21.8 million in restitution for the losses his real estate investment business caused. The Court also sentenced the defendant to a three-year period of supervised release and explicitly barred him from participating in any real estate, banking, or lending-related activities. The defendant was ordered to self-surrender to federal authorities on June 4, 2015, at which time he will begin serving the sentence.
Assistant U.S. Attorney Andrew S. Huang is prosecuting the case with the assistance of Vanessa Quant and Yvette Baird. The prosecution is the result of a multi-year investigation by the Federal Bureau of Investigation. The U.S. Department of Labor, Employee Benefits Security Administration also assisted with the investigation.
Former Tutoring Company Owners Who Admitted Defrauding Dallas and Fort Worth Independent School Districts Are SentencedRead the Press Release
DALLAS — Two individuals who ran a tutoring business from offices in Hurst, Texas, and pleaded guilty to federal offenses stemming from their fraudulent operation of that business, were sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Flori Mati, aka “Florine Shaw,” and David Mbugua, were each sentenced to 60 months in federal prison by U.S. District Judge Barbara M. G. Lynn. In addition, Judge Lynn ordered each to pay, jointly and severally, $1,613,733 in restitution. Each pleaded guilty in October 2014 to one count of conspiracy to make false, fictitious or fraudulent claims. After their arrests in March 2014, the Court determined they were flight risks and ordered them to remain in federal custody.
Under the No Child Left Behind Act of 2001, federal funds were distributed to state educational agencies, which in turn distributed them to school districts in the form of sub-grants. School districts used a portion of these federal dollars to fund a Supplemental Education Services (SES) program. That SES program provided extra academic assistance, such as tutoring, for eligible students at no cost. Tutoring providers billed the local school districts for the hours of tutoring provided and the school district paid for the tutoring with federal grant money.
For the 2011-2012 and 2012-2013 school years, the Dallas Independent School District (DISD) and the Fort Worth Independent School District (FWISD) each received sub-grants and offered an SES program to eligible students at eligible schools.
From 2011 through the beginning of August 2012, Mati, a former DISD teacher, and Mbugua formed four tutoring companies: Wise Links, LLC; Diverse Links, Inc.; Boost Academy and Avenue Academy. They operated all four entities as one business from offices located on West Bedford Euless Road in Hurst. Beginning in September 2011 and continuing through the end of May 2013, Mati and Mbugua contracted with DISD and FWISD, as well as other school districts in Texas, to provide tutoring services under the SES program.
Mati and Mbugua formed these four separate companies to hide their true ownership and mislead the Texas Education Agency into believing they were unrelated companies, and thus, obtain more SES business than a single company could obtain from the various school districts.
They also obtained as many student names as possible. Mati obtained student identifying information by using her online teacher access to the DISD network. Mati, Mbugua and their employees would also go door-to-door with gifts and prizes to induce students to sign up for their tutoring services, regardless of the students’ intent to attend. Mati, Mbugua and their empoyees would then use student information to mass enroll students, via the Internet, from their residence, their Hurst offices and even from Kenya. They falsified documentation supporting their fraudulent claims by inducing students to sign attendance logs for tutoring sessions they did not receive. They even recruited a friend and her children to complete false and forged attendance sheets.
During the course of their conspiracy, Mati, Mbugua and others submitted false claims to DISD, FWISD and other school districts in Texas, for tutoring services under the SES program that were not provided to students. They billed DISD $2,730,389, and they were paid $1,523,079. They billed FWISD $1,430,687, and they were paid $1,003,318. Approximately 75% of the total amounts billed – approximately $3,120,807 – was for services not provided. Mati and Mbugua wired some of the proceeds they received from these false claims to Kenya, beyond the reach of U.S. authorities.
The FBI and U.S. Department of Education – Office of Inspector General investigated. Assistant U.S. Attorneys Nancy Larson and Megan Fahey prosecuted.
Former Loan Officer at Export-Import Bank Pleads Guilty to Accepting over $78,000 in BribesRead the Press Release
A former loan officer at the Export-Import Bank of the United States (Ex-Im Bank) pleaded guilty in federal court today for accepting more than $78,000 in bribes in return for recommending the approval of unqualified loan applications to the bank, among other misconduct.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Inspector General Michael T. McCarthy of the Export-Import Bank of the United States and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement.
Johnny Gutierrez, 50, of Stafford, Virginia, pleaded guilty before U.S. District Judge Gladys Kessler of the District of Columbia to one count of bribery of a public official. A sentencing hearing is scheduled for July 20, 2015.
“Gutierrez risked both taxpayer dollars and the integrity of the Ex-Im Bank for his personal financial gain,” said Assistant Attorney General Caldwell. “Those charged with serving the public will be held accountable when they seek personal enrichment at the public’s expense.”
“Gutierrez betrayed the trust and confidence of the hardworking Ex-Im Bank employees and the U.S. taxpayers,” said Acting Inspector General McCarthy. “The Office of Inspector General will continue to aggressively and diligently investigate all allegations of waste, fraud, and abuse related to Ex-Im Bank programs.”
“In his role as a loan officer, Gutierrez betrayed the trust that was placed in him by fellow citizens and took bribes in exchange for providing favorable action on loan applicants,” said Assistant Director in Charge McCabe. “The FBI, with our partners, will continue to investigate and expose fraudulent schemes that tarnish the good and ethical work of the U.S. government.”
According to his plea agreement, Gutierrez was a loan officer for the Ex-Im Bank based in Washington, D.C. The Ex-Im Bank is the federal agency responsible for promoting the export of U.S. goods to foreign countries through the guarantee of domestic loans to foreign buyers. As an Ex-Im Bank loan officer, Gutierrez was responsible for conducting credit underwriting reviews for companies and lenders submitting financing applications to the Ex-Im Bank.
As part of his guilty plea, Gutierrez admitted that on 19 separate occasions between June 2006 and December 2013, he accepted bribes totaling more than $78,000 in return for recommending the approval of unqualified loan applications and improperly expediting other applications.
Specifically, Gutierrez admitted that he intentionally ignored the fact that one company had previously defaulted in 10 previous transactions guaranteed by the bank, causing the Ex-Im Bank to lose almost $20 million. Despite these defaults, Gutierrez accepted bribes to continue to recommend the approval of the company’s loan applications. Additionally, Gutierrez admitted that he accepted bribes from a financing broker to expedite applications submitted by the broker, and that he privately assisted the broker to improve its applications before submission to the bank. In exchange, Gutierrez was to receive half of the broker’s profit on the transactions financed by the bank. Further, Gutierrez disclosed to the broker inside information about financing applications submitted to the Ex-Im Bank, so that the broker could solicit the applicants as clients.
The case was investigated by the Inspector General of the Export-Import Bank of the United States and the FBI, with significant assistance provided by the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington Field Office. The case is being prosecuted by Senior Litigation Counsel Patrick M. Donley and Trial Attorney William H. Bowne of the Criminal Division’s Fraud Section.
Former Letter Carrier Pleads Guilty to Dumping U.S. MailRead the Press Release
Nine Trash Bags of Mail Recovered from Overgrown Lot
NORFOLK, Va. – Shalita Corley, 31, of Portsmouth, Virginia, pleaded guilty today to one count of secreting and delaying U.S. mail, which she had been entrusted to deliver.
A statement of facts filed with the plea agreement reported Corley worked as a city carrier assistant with the United States Postal Service (USPS) from November 3, 2014 through February 6, 2015, when she resigned her position. On February 3, 2015, a Norfolk resident observed Corley acting suspiciously and walking about an overgrown lot abutting the Lafayette River in Norfolk. After Corley drove away in her USPS vehicle, the resident investigated and found two trash bags containing hundreds of pieces of mail, including what appeared to be one or more envelopes containing checks. The resident collected the mail and promptly turned it over to the USPS. Further investigation during the ensuing week by residents and the USPS led to the recovery of other mail scattered about the lot and seven additional trash bags containing undelivered U.S. mail, including what appeared to be bank statements, end of year tax mailings, USPS priority mail, letters from service members in the armed forces, and other mailed advertisements and the like. Review by agents with the USPS Office of Inspector General revealed that these items of U.S. mail had been postmarked on days falling within the first four weeks of January and the first week of February 2015. The USPS later delivered all of the recovered mail to its intended recipients.
A Norfolk federal grand jury indicted Corley on March 4, 2015. Corley faces a maximum penalty of five (5) years in prison when she is sentenced on July 15, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul Bowman, Special Agent in Charge, USPS, Office of Inspector General, made the announcement after the plea was accepted by Chief Judge Rebecca Beach Smith of the United States District Court.
This case was investigated by USPS, Office of the Inspector General. Assistant U.S. Attorney Robert J. Krask is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-25.
Filipino National Charged with Conspiring to Export Firearms Parts from the United StatesRead the Press Release
CAMDEN, N.J. – A Filipino national appeared in federal court today to face charges that he allegedly conspired to smuggle firearms parts out of the United States, U.S. Attorney Paul J. Fishman announced.
Kirby Santos, 38, of the Republic of the Philippines, is charged in a criminal complaint with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws. Santos was arrested in Guam on March 31, 2015, by special agents of the U.S. Department of Homeland Security-Homeland Security Investigations (DHS-HSI) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). He appeared this morning before U.S. Magistrate Judge Joel Schneider in Camden federal court and was detained.
According to the documents filed in this case and statements made in court:
Beginning in 2008, Santos used an internet forum to meet others and discuss the sales and shipment of firearms and firearms parts from the United States to the Philippines. Santos met a Toms River, New Jersey, conspirator who agreed to help Santos ship firearms and firearms parts from the United States to the Philippines. Santos used his credit cards and other forms of payment to purchase firearms parts from suppliers in the United States. Knowing that they would not ship to the Philippines, Santos arranged for the suppliers – including J&T Distributing from Winchester, Kentucky, Rainier Arms from Auburn, Washington, and Midway Corporation from Columbia, Missouri, among others – to send the firearms parts to the conspirator’s Toms River address in order to make it appear as a domestic sale.
At the direction of Santos, the conspirator would then repackage the firearms parts, falsely label the contents of the package and export the firearms parts to the Philippines for ultimate delivery to Santos. To disguise his role in the conspiracy, the conspirator used an alias when sending the packages containing prohibited items. Upon receiving the firearms parts, Santos paid the conspirator through cash payments to the conspirator’s relatives in the Philippines.
During the course of the nearly five-year long conspiracy, Santos purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to the Philippines without the required export license.
The conspiracy count with which Santos is charged is punishable by a maximum potential penalty of five years in prison and a $250,000 fine.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of DHS-HSI, under the direction of Acting Special Agent in Charge Kevin Kelly, and special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky Jr., with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Timothy R. Anderson Esq., Red Bank, New Jersey
Federal Jury Convicts Springfield Man of Drug and Firearms OffensesRead the Press Release
BOSTON – Following a six-day trial, a federal jury convicted a Springfield man with distributing cocaine, crack cocaine, and being a felon in possession of a firearm and ammunition.
Sherad Therrien, 24, was convicted yesterday of distributing and possessing with intent to distribute both cocaine and crack cocaine, and being a felon in possession of a firearm and ammunition. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for July 16, 2015.
On Sept. 4, 2013, Therrien sold a cooperating witness 27 grams of cocaine, 6 grams of cocaine base in the form of crack cocaine, a HiPoint, 9mm handgun, and 7 rounds of 9mm ammunition for $2,140. On Dec. 11, 2013, Therrien sold the witness an additional 12 grams of cocaine base in the form of crack cocaine for $62. Two months later, Therrien sold nearly 14 grams of cocaine for $620 to the witness. Finally, on March 28, 2014, Therrien sold 10 grams of cocaine for $625.
The charge of distributing cocaine and/or crack cocaine provides a sentence of no greater than 20 years in prison, five years of supervised release, and a fine of $1 million. The charge of being a felon in possession of a firearm and ammunition provides for 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; 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; and Springfield Police Commissioner John Barbieri, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Todd E. Newhouse of Ortiz=s Springfield Branch Office.
Federal Indictment Charges 12 "United Blood Nation" Gang Members with Racketeering ConspiracyRead the Press Release
CHARLOTE, N.C. – A second superseding federal indictment was unsealed this morning charging 12 alleged gang members with racketeering conspiracy, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Of the 12 defendants charged, seven face additional charges, including murder in aid of racketeering and related firearms violations, which potentially expose those defendants to the federal death penalty.
Of the 12 defendants named in the indictment, three were previously arrested on federal armed robbery charges and two are in custody in South Carolina on state murder charges. Law enforcement arrested seven of the alleged gang members during an early morning round-up.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Kevin Brackett, Solicitor for York and Union Counties in South Carolina; Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department; and Sheriff Bruce Bryant of the York County Sheriff’s Office in South Carolina join Acting U.S. Attorney Rose in making today’s announcement.
“The individuals charged today have alleged ties to a ruthless street gang that uses fear, intimidation, and even murder to protect the interests of their criminal organization,” said Acting U.S. Attorney Rose. “My Office will work closely with our law enforcement partners, in North Carolina and across state lines, to identify and prosecute violent gang offenders and deliver justice to victims of gang violence.”
“From the moment the FBI became involved in the investigation of the murders of Douglas and Deborah London, agents, task force officers, and other FBI employees worked tirelessly to find those responsible. Together with our law enforcement partners, we have discovered and unraveled a dangerous criminal enterprise that spread a web of violence without regard for innocent lives,” said John A. Strong, Special Agent in Charge of the FBI in North Carolina.
The indictment charges each of the 12 alleged gang members with RICO conspiracy. The named defendants are:
- Jamell Lamon Cureton a/k/a “Assassin,” a/k/a “Murda Mel,” 22, of Charlotte.
- Nana Yaw Adoma a/k/a “Ratchet,” 20, of Charlotte.
- David Lee Fudge a/k/a “Flames” a/k/a “Flame,” 22, of Pineville, N.C.
- Daquan Lamar Everett a/k/a “Day Day,” 20, of Charlotte.
- Randall Avery Hankins, II a/k/a “Foe,” 20, of Charlotte.
- Malcolm Jarrel Hartley a/k/a “Silent” a/k/a “Bloody Silent,” 21, of Charlotte.
- Nehemijel Maurice Houston a/k/a “Mijel” a/k/a “Swagg Out,” 20 of Charlotte.
- Briana Shakeyah Johnson a/k/a “Breezy B” a/k/a “Breezy V” 19, of Concord, N.C.
- Ibn Rashaan Kornegay a/k/a “IB,” 35, of Greenville, N.C.
- Centrilia Shardon Leach a/k/a “CeCe,” 31, of Charlotte.
- Ahkeem Tahja McDonald a/k/a “Lil Keem” a/k/a “Savage,” 21, of Charlotte.
- Rahkeem Lee McDonald a/k/a “Hitman” a/k/a “Big Keem,” 22, of Charlotte.
In addition to the RICO conspiracy charge, Cureton, Fudge, Hankins, Hartley, Johnson and Rahkeem McDonald are charged with two counts of murder in aid of racketeering and two counts of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death, for the October 2014 murders of Douglas and Deborah London. Hartley faces two additional charges of possession of a firearm by a felon.
“The murder of a witness is more than just a violent assault calculated to shut down a prosecution,” said Solicitor Kevin Brackett, “it is an attack on the rule of law. It indicates a degree of contempt for the criminal justice system that deserves society’s harshest penalty.”
The unsealed indictment also charges Cureton and Ahkeem McDonald with one count of murder in aid of racketeering and one count of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death in connection with the August 2013 murder of Kwamne Donqurius Clyburn.
Cureton, Adoma and Fudge are also charged with one count of Hobbs Act Robbery, one count of assault with a dangerous weapon in aid of racketeering activity, and one count of use or carry a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence, for the May 2014 armed robbery of the Pineville area mattress store owned by Douglas and Deborah London.
“These indictments send a very strong message to those who engage in violent criminal activity. The Charlotte-Mecklenburg Police Department and our partner agencies will continue to be steadfast in our focus to keep the community safe,” said Chief Rodney D. Monroe of Charlotte Mecklenburg Police.
According to the allegations contained in the second superseding indictment filed in federal court, other publicly filed documents and statements made in court, from at least in or about 2012 to present:
The 12 defendants were members of the “United Blood Nation,” a criminal enterprise commonly known as “UBN,” or the “Bloods.” The defendants operated as a Racketeer Influenced and Corrupt Organization (RICO), responsible for carrying out violent acts for the purpose of protecting and furthering the gang’s power, intimidating communities and rival gangs, enriching its members and providing financial assistance to incarcerated UBN members, and obstructing law enforcement from identifying and prosecuting other gang members.
As UBN members, the defendants operated according to a common set of Bloods’ rules, also known as “The 31,” followed the gang’s ranking system, used the communication codes and language affiliated with the gang, and used distinctive markings, tattoos and colors to indicate allegiance to the gang. The defendants also regularly participated in gang meetings, during which they collected gang dues, planned actions against individuals suspected of cooperating with law enforcement, discussed the commission of crimes to include robbery and murder, and made plans to obstruct justice and to prevent the prosecution of other UBN gang members, among others.
On or about May 25, 2014, Cureton, Adoma and Fudge robbed “The Mattress Warehouse,” located in Pineville, N.C. Cureton committed the robbery at gun point, while Adoma served as the lookout man and Fudge the getaway driver. During the robbery, Cureton and Douglas London exchanged gunfire, Cureton was injured and the three conspirators fled the scene. Cureton sought medical treatment at an area hospital and was arrested on state charges related to the robbery. A criminal indictment bringing federal armed robbery and related charges against Cureton and Adoma was filed in Charlotte on November 18, 2014. In a first superseding indictment filed on January 21, 2015, Fudge was added as a third defendant for his role the robbery.
Over the next five months, the defendants exchanged correspondence and conducted numerous in-person and telephonic gang meetings, during which they discussed and planned the murder of Douglas London, the only eyewitness to the robbery. On or about October 23, 2014, Johnson drove Hartley to South Carolina, where Hartley shot and killed Douglas and Deborah London at their home. Shortly after, Cureton ordered the gang to remain silent about the Londons’ murders. Kornegay also conducted a telephone gang meeting with other UBN gang members, during which he directed them to lay low to avoid contact with law enforcement.
The indictment further charges Cureton and Ahkeem McDonald with the murder of Kwamne Donqurius Clyburn. According to the indictment, on or about August 22, 2013, the two gang members shot and killed Kwamne Clyburn for “false claiming,” that is, claiming to be a UBN member when he was not.
Nine defendants are currently in federal custody and had their initial appearances in Charlotte today. Law enforcement arrested Kornegay in Greenville and he appeared in federal court in Raleigh. Hartley and Johnson will be extradited from South Carolina in the coming days.
A chart identifying each defendant’s charges and maximum penalties is attached below. The indictment contains a notice of special sentencing factors, which provides for a greater sentence for those defendants charged with offenses related to the murders. The defendants’ sentences will be determined by the Court, after considering the federal sentencing guidelines and statutory sentencing factors.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
At today’s press conference announcing the charges, Acting U.S. Attorney Rose praised the outstanding investigative work of the FBI, CMPD and the York County Sheriff’s office and noted that the investigation is still ongoing.Ms. Rose also thanked the York County Solicitor’s Office for their continued support and cooperation with the case.
Assistant U.S. Attorneys Elizabeth Greene and Don Gast are in charge of the prosecution.
Federal Grand Jury in Del Rio Indicts Four in Firearms Smuggling OperationRead the Press Release
This afternoon in Del Rio, a federal grand jury indicted four individuals for their roles in a scheme to smuggle two firearms and an assortment of ammunition into Mexico announced Acting United States Attorney Richard Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge James Spero.
The indictment charges 47–year-old Eduardo Hinojosa (aka “Lalo”), a U.S. Citizen residing in Piedras Negras, Mexico; and three Mexican citizens residing in Piedras Negras--42-year-old Carlos Mendoza-Hernandez (aka “Pepo”), 23-year-old Elizabeth Cervantes-Mateos and 24–year-old Gily Ajin-Cordova--with five counts of aiding and abetting the smuggling of goods from the United States.
According to court records, the defendants were arrested on April 7, 2015. On that day, investigators observed Hinojosa loading ammunition and firearms into a vehicle at an Eagle Pass business owned by Mendoza’s family. Authorities subsequently seized a .243 caliber rifle, a .12 gauge shotgun and approximately 1,000 rounds of ammunition in various calibers from inside that vehicle. At the time of the seizure, authorities arrested the vehicle’s occupants--Cervantes and Ajin. Agents later observed defendants Hinojosa and Mendoza unloading boxes into a storage facility in Eagle Pass. Subsequently, authorities arrested Hinojosa and Mendoza and a consensual search of that storage facility revealed approximately 750 rounds of shotgun shells. Court records allege that the defendants were aware that the firearms and ammunition were ultimately destined for Mexico and that the defendants were aware that it is unlawful to export those items without a license.
All four defendants have remained in federal custody since their arrest. Each charge upon conviction calls for up to ten years in federal prison.
The case was investigated by Homeland Security Investigations with assistance from U.S. Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the Maverick County Sheriff’s Office. Assistant U.S. Attorney Lewis Thomas is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are innocent until proven guilty in a court of law.
ExxonMobil to Pay $5 Million to Settle U.S. and Arkansas Claims for 2013 Mayflower Oil SpillRead the Press Release
ExxonMobil Pipeline Company and Mobil Pipe Line Company (ExxonMobil) have agreed to pay civil penalties, fund an environmental project and implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws stemming from a 2013 crude oil spill from the Pegasus Pipeline in Mayflower, Arkansas, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
Under a consent decree lodged today in federal court, ExxonMobil will pay $3.19 million in federal civil penalties and take steps to address pipeline safety issues and oil spill response capability. In addition, ExxonMobil will pay $1 million in state civil penalties, $600,000 for a project to improve water quality at Lake Conway, and $280,000 to the Arkansas Attorney General’s Office for the state’s litigation costs.
The oil spill occurred on March 29, 2013, after the Pegasus Pipeline, carrying Canadian heavy crude oil from Illinois to Texas, ruptured in the Northwoods neighborhood of Mayflower, Arkansas. Oil flowed through the neighborhood, contaminating homes and yards, before entering a nearby creek, wetlands and a cove of Lake Conway. Some residents were ordered to evacuate their homes after the spill and remained displaced for an extended period of time. The spill volume has been estimated at approximately 3,190 barrels, or 134,000 gallons.
“This settlement holds ExxonMobil accountable for this very serious oil spill and its disastrous impact on the Mayflower community and environment,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This agreement is also an excellent example of federal and state cooperation that will benefit public health and the environment for years to come and most importantly prevent future disasters by requiring better pipeline safety and response measures.”
“Oil spills like this one in Mayflower, Arkansas have real and lasting impacts on clean water for communities,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “Companies need to take the necessary precautions to make sure oil is transported safely and responsibly. This settlement puts in place essential pipeline safety and response measures that are important to make this industry safer for communities.”
“The U.S. and the state of Arkansas have worked together since the first barrel of oil was spilled in 2013 to provide relief and assistance to the residents of Mayflower and Faulkner County and to hold ExxonMobil accountable for this serious spill,” said U.S. Attorney Christopher R. Thyer for the Eastern District of Arkansas. “This settlement does both. In addition to paying significant civil penalties, ExxonMobil will provide money for safety and water-quality projects to help ensure that the residents of the affected area never have to go through an ordeal like this again. This resolution to a terrible disaster is a testament to the partnership between our federal and state governments to protect the citizens of Arkansas.”
“Pipeline companies have the responsibility to protect both our water resources and people from oil spills,” said Regional Administrator Ron Curry for EPA. “Today’s settlement will help protect the environment by preventing the high economic and environmental costs of future oil spills.”
The penalties owed by ExxonMobil under the consent decree are in addition to the money that the company has already paid to reimburse federal and state response efforts and comply with orders and directives issued by the Pipeline and Hazardous Materials Safety Administration (PHMSA). The segment of the Pegasus Pipeline that includes the rupture site has not been used since the March 2013 spill, and under the terms of the settlement agreement, ExxonMobil must comply with all PHMSA corrective action requirements before returning the pipeline to operation. The consent decree also requires ExxonMobil to take other important pipeline safety corrective action to help prevent future ruptures and improve its spill response capabilities by providing additional training to its oil spill first responders. In addition, ExxonMobil is required to establish caches of spill response equipment and supplies at three strategically-chosen sites along the pipeline, including one location near Mayflower in Faulkner County, Arkansas.
The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the U.S. or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid to the U.S. for this spill will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. Those funds will be available to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the U.S. or adjoining shorelines.
The joint federal and state complaint in the case, filed June 13, 2013, in the U.S. District Court for the Eastern District of Arkansas, alleges that ExxonMobil discharged crude oil in violation of the Clean Water Act. The complaint also asserts state claims for civil penalties for improper storage of hazardous waste generated during the cleanup and for water and air pollution violations pursuant to the Arkansas Water and Air Pollution Control Act and the Arkansas Hazardous Waste Management Act.
The proposed consent decree, lodged in the Eastern District of Arkansas, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at http://www.justice.gov/enrd/Consent_Decrees.html.
ExxonMobil to Pay $5 Million to Settle U.S. and Arkansas Claims for 2013 Mayflower Oil SpillRead the Press Release
WASHINGTON – ExxonMobil Pipeline Company and Mobil Pipe Line Company (ExxonMobil) have agreed to pay civil penalties, fund an environmental project and implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws stemming from a 2013 crude oil spill from the Pegasus Pipeline in Mayflower, Arkansas, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
Under a consent decree lodged today in federal court, ExxonMobil will pay $3.19 million in federal civil penalties and take steps to address pipeline safety issues and oil spill response capability. In addition, ExxonMobil will pay $1 million in state civil penalties, $600,000 for a project to improve water quality at Lake Conway, and $280,000 to the Arkansas Attorney General’s Office for the state’s litigation costs.
The oil spill occurred on March 29, 2013, after the Pegasus Pipeline, carrying Canadian heavy crude oil from Illinois to Texas, ruptured in the Northwoods neighborhood of Mayflower, Arkansas. Oil flowed through the neighborhood, contaminating homes and yards, before entering a nearby creek, wetlands and a cove of Lake Conway. Some residents were ordered to evacuate their homes after the spill and remained displaced for an extended period of time. The spill volume has been estimated at approximately 3,190 barrels, or 134,000 gallons.
“This settlement holds ExxonMobil accountable for this very serious oil spill and its disastrous impact on the Mayflower community and environment,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This agreement is also an excellent example of federal and state cooperation that will benefit public health and the environment for years to come and most importantly prevent future disasters by requiring better pipeline safety and response measures.”
“Oil spills like this one in Mayflower, Arkansas have real and lasting impacts on clean water for communities,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “Companies need to take the necessary precautions to make sure oil is transported safely and responsibly. This settlement puts in place essential
District Man Sentenced to 15 Years in Prison for Attacking Man and Woman in Northwest WashingtonRead the Press Release
WASHINGTON – Ryan Ramotar, 24, of Washington, D.C., was sentenced today to a 15-year prison term for sexually assaulting a woman and assaulting a man in a May 2013 attack in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Ramotar pled guilty in September 2014, in the Superior Court of the District of Columbia, to one count each of first-degree sexual abuse and aggravated assault. He was sentenced by the Honorable Rhonda Reid Winston. Following his prison term, he will be placed on 10 years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, on May 6, 2013, at approximately 12:50 a.m., the male and female victims had just parked their car in a parking lot in the 1400 block of Oak Street NW. While they sat talking in the car, Ramotar and another male approached and opened the car doors. Ramotar and the other male pointed handguns at the victims and asked where the money was. He and the other male punched and struck the male victim in the head until he lost consciousness and lay on the ground next to the car.
Ramotar then pulled the female victim out of the car while still brandishing the gun and pushed her to the ground. He struck her several times in the head with the gun, demanding her money and phone. He took her phone and ATM card, and then told her to stand up and not to run. Then he walked the female victim away from the car, down an alley and into an open garage behind a house. At this point, Ramotar opened the cylinder of the gun, removed several bullets, and placed them in the female victim’s hand to show her that the gun was real. Ramotar then sexually assaulted the victim while holding the handgun to the back of her head.
Afterward, Ramotar told the female victim to look at the wall and demanded her PIN number for the ATM card that he had taken. He told her not to leave, and then fled. The female victim stayed on the ground for a short time until she was sure that the assailant was gone, and then ran and flagged down a uniformed officer with the Metropolitan Police Department (MPD). After making her report, she was transported to Washington Hospital Center for a Sexual Assault Nurse Examination (SANE). The SANE kit was later sent for forensic testing and analysis.
Within less than two hours after the attack, at approximately 2:20 a.m., three withdrawals were made on the female victim’s bank account for $300 each. Detectives later obtained still photos and surveillance video footage of the person conducting these transactions. MPD later made this video public via the Internet, and sought the public’s assistance in identifying the individual at the ATM as a person of interest. In September, 2013, MPD received information that the individual on the bank surveillance video was the defendant.
Ramotar also was subsequently linked to the crime through DNA.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the officers and detectives of the Metropolitan Police Department’s Third and Fourth Districts and Sexual Assault Unit, as well as the mobile crime scene officers and technicians who worked on the case. He acknowledged the work of the District of Columbia Department of Forensic Sciences. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Victim/Witness Advocate Melissa Milam and Victim/Witness Advocate Christina Principe; Victim/Witness Specialists La June Thames and Katina Adams-Washington; and Paralegal Specialists Jason Manuel, Kristy Penny, Debra McPherson, and Erica Vample. Finally, he praised the work of Assistant U.S. Attorneys Natalia Medina, who assisted in investigating the case, and Amy H. Zubrensky, who prosecuted the case.
Delaware Man Pleads Guilty to Sexually Abusing D.C. GirlRead the Press Release
WASHINGTON – Robert Sanders III, 22, of Dover, Delaware, pled guilty today to charges stemming from his sexual abuse of a 13-year-old girl, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Sanders pled guilty in the Superior Court of the District of Columbia to one count of first-degree child sexual abuse. He is to be sentenced by the Honorable Rhonda Reid Winston on June 23, 2015. He faces up to a statutory maximum of life in prison. He will also be required to register as a sex offender for the rest of his life.
According to the government’s factual proffer at today’s plea hearing, during April of 2014, Sanders came to live with a relative in Southeast Washington. The victim was on spring break from school that week, and was visiting relatives in the same household. During that week, Sanders engaged in several sexual acts with the girl. The conduct was discovered by family members via text messages that Sanders and the victim had sent to one another.
In announcing the plea, Acting U.S. Attorney Cohen praised the work of the Metropolitan Police Department’s Youth Division, which investigated the case, as well as the staff of Safe Shores, which interviewed the victim. He also expressed appreciation for the specialized medical treatment provided by the team of child abuse experts at the Freddie Mac Child and Adolescent Protection Center at the Children’s National Medical Center. In addition, Acting U.S. Attorney Cohen commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key; Victim/Witness Advocate Veronica Vaughan, and Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
Covington Man Sentenced for Conspiracy to Smuggle Turtles Out of the United StatesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LAWRENCE TREIGLE, age 33, from Covington, was sentenced today after pleading guilty to a one-count Bill of Information charging him with conspiring to smuggle turtles out of the United States in violation of the Lacey Act.
According to court documents, on December 3, 2014, TREIGLE pled guilty to the superseding Bill of Information. TREIGLE admitted he was part of a group of individuals involved in capturing North American Wood turtles from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong.
U.S. District Court Judge Helen G. Berrigan sentenced TREIGLE to a term of 15 months imprisonment, to be followed by two years of supervised release.
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.