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Friday 10 April 2015
Phenix City Man Sentenced to over 10 Years for a Debt Elimination Scheme Affecting over 2,900 VictimsRead the Press Release
Montgomery, Alabama - Bradford Lamar Daley, of Phenix City, Alabama, was sentenced today to 121 months in prison for engaging in a conspiracy to commit mail fraud and tax fraud, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. In addition to the prison sentence, the court ordered Daley to pay over $5.8 million.
Between 2005 and 2011, Daley solicited individuals who were heavily burdened by debt to pay between $2500 and $5000 for debt elimination services. In exchange for the payment, Daley promised to assume and eliminate the victims’ unsecured debt, including credit card debt, signature loans, business loans, student loans and personal loans. These debts were not eliminated as promised. Records showed that Daley, and others working with him, collected over $6 million dollars from more than 2,900 victims nationwide.
“This scheme targeted hard-working people trying to better their future and scammed them by turning their dreams into a financial nightmare,” said Adrian Gonzalez, United States Postal Inspector in Charge, Houston Division. “As part of the mission of United States Postal Inspection Service to protect Postal Service customers, this sentence sends out the message that debt elimination scammers can be brought to face justice for their crimes.”
“The debt-elimination scheme orchestrated by Bradford Daley and others was fueled by greed and deceit," stated IRS Criminal Investigation Special Agent in Charge Veronica F. Hyman-Pillot. "Many victims across the United States were exploited as a result of Bradford Daley's personal agenda to increase his financial wealth. The magnitude of the tax loss to the government and the financial loss to other victims is appalling. IRS-CI will not hesitate to investigate similar illegal activity that promotes selfish gain."
“I want to thank the U.S. Postal Inspection Service and the IRS for their tireless work on this case,” stated George L. Beck, U.S. Attorney. “This district is lucky to have such capable agencies protecting the victims of financial crimes. What this defendant did was deplorable and this sentence and money judgment is justice served.”
The case was investigated by the Inspectors at the United States Postal Inspection Service, and Special Agents of the IRS - Criminal Investigation Division and IRS-Special Enforcement Programs. U.S. Attorney George L. Beck, Jr. and Assistant U.S. Attorney Gray Borden prosecuted the case.
Omaha Man Sentenced for Intentional Misuse of Funds from an Agency That Received Federal AssistanceRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 10, 2015, James M. Clark, age 52, of Omaha, Nebraska was sentenced for intentional misuse of funds from an agency that received federal assistance. The Honorable Joseph F. Bataillon, Senior United States District Court Judge, sentenced Clark to a four year term of probation. Clark was also ordered to pay restitution to the Westside Community Schools District in the amount of $20,000.
An investigation conducted by the Department of Education Office of Inspector General determined that between 2004 and 2010, Clark served as Comptroller and then as Director of Finance within the Business Office of Westside Community Schools District. During the period of September 1, 2006, through August 31, 2010, Clark intentionally misapplied property of Westside Community Schools District when he used Westside Community Schools District funds to pay for purchases made on a credit card in Clark’s name. Clark’s purchases were not properly authorized and included purchases for his personal use.
The case was investigated by the Department of Education Office of Inspector General, Criminal Investigations Division.
Omaha Man Sentenced for Felon in Possession of a Firearm and AmmunitionRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 10, 2015, James Kim Gatluak, 26, of Omaha, was sentenced to seven years (84 months) in prison for being a felon in possession of a firearm and ammunition. Following the prison term, Gatluak will serve two years on supervised release.
On September 2, 2014, two plainclothes Lincoln/Lancaster County Drug Task Force officers in an unmarked car were approached in a Lincoln alley by Gatluak and another man. Gatluak asked the officers if they were “looking for some tree,” which the officers understood to be an offer to sell them marijuana. The officers made contact with Gatluak and identified themselves as police officers. Gatluak was patted down after officers saw him holding an item which they suspected to be a gun in his front pants pocket. Gatluak was found in possession of a loaded .45 caliber handgun. He told officers he usually carried a gun, because he had recently been assaulted in Omaha. No marijuana was found in his possession. Gatluak had two prior felony convictions from Hall County for robbery and assault by a confined person.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
New Orleans Restaurant Owner Charged with Wire Fraud and Failing to Pay over TaxesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JASON C. DOYLE, age 38, of New Orleans, was charged today in a Bill of Information with one count of Wire Fraud and one count of Failing to Pay Over Taxes.
According to documents filed in federal court, DOYLE operated, controlled, marketed and sold several restaurant franchises to willing investors. From 2010 through 2014, DOYLE defrauded three investors who paid him monies for a restaurant franchise. DOYLE defrauded the investors of monies totaling in excess of $888,000. These investor monies were paid to DOYLE with the understanding that DOYLE would furnish them with either a restaurant or the equipment and essentials necessary to open a restaurant establishment. Instead of using the investor funds to complete the promised restaurant project, DOYLE fraudulently diverted the monies for his own personal use.
In 2010, DOYLE also deducted federal taxes from his employees’ wages. However, he failed to pay over the collected employee taxes to the Department of Treasury, in violation of federal tax law. The taxes due and owing to the Department of Treasury exceed $105,000.
The maximum penalty for wire fraud is twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. The maximum penalty for failing to pay over taxes is five years imprisonment and/or a fine of $250,000.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division in investigating this matter. Assistant United States Attorneys, Richard R. Pickens, II and Andre J. Lagarde are in charge of the prosecution.
Jason C. Doyle Bill of Information
New Charges Filed Against the Owner of Alpha Diagnostics Including Four Counts of Health Care Fraud Resulting in DeathRead the Press Release
Baltimore, Maryland - A federal grand jury has returned a superseding indictment against the owner of Alpha Diagnostics, Rafael Chikvashvili, age 67, of Baltimore, Maryland, adding four counts of health care fraud resulting in serious bodily harm and death, as well as conspiracy and wire fraud, related to a scheme to defraud Medicare and Medicaid of more than $7.5 million. The superseding indictment was returned late on April 9, 2015. No court appearance has been scheduled yet for Chikvashvili on the superseding indictment, and he continues on release under the supervision of U.S. Pretrial Services.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the indictment, Chikvashvili formed Alpha Diagnostics Services, Inc., which later became Alpha Diagnostics, LLC, in 1993, and always acted as Managing Member, Authorized Official, Managing Employee, President and Chief Executive Officer for Alpha Diagnostics. Chikvashvili holds a PhD in mathematics, but was never a medical doctor or licensed physician. Timothy Emeigh was the Vice President in charge of Operations at Alpha Diagnostics. He was a licensed radiologic technologist.
Alpha Diagnostics was a portable diagnostic services provider, principally of X-rays, but also provided ultrasound tests, and cardiologic examinations. Alpha Diagnostics operated in Maryland, Delaware, Pennsylvania, Virginia and the District of Columbia. Alpha Diagnostics was headquartered in Owings Mills, Maryland, where Chikvashvili worked full time.
The 33-count superseding indictment alleges that beginning in 1997 through October 2013, Chikvashvili conspired with Timothy Emeigh and others to defraud Medicare and Medicaid by creating false radiology, ultrasound and cardiologic interpretation reports; by submitting insurance claims for medical examination interpretations that were never completed by licensed physicians; by falsely representing to Medicare and Medicaid, as well as to treating physicians, that the interpretations had, in fact, been completed by actual licensed physicians; and by submitting insurance claims for radiology, ultrasound and cardiologic examinations (and their associated costs) that were never performed, and/or which were in excess of the number of examinations ordered by the treating physician.
For example, in June 2012, Emeigh traveled to Jamaica for a vacation. The superseding indictment alleges that Chikvashvili directed Emeigh, through text messages and telephone calls, to view medical images using his personal laptop in his hotel room and then draft false physician interpretation reports. Alpha Diagnostics personnel subsequently submitted false claims to Medicare for these images and fraudulent physician reports.
The superseding indictment alleges that four patients died because their x-rays were not interpreted by a qualified radiologist. Instead, Alpha Diagnostics employees reviewed the images and failed to detect congestive heart failure, pneumonia, and a large pelvic mass revealed in the images. The patients suffered serious complications, and ultimately died. According to the indictment, had those images been correctly interpreted by a licensed radiologist, the medical treatment for those patients would have been different and/or their surgery avoided.
For example, on May 1, 2012, Alpha Diagnostics personnel took a chest X-ray of a patient who was scheduled to undergo elective surgery, to determine if the patient could safely have surgery. The indictment alleges that the image was not interpreted by a qualified radiologist but instead, a non-physician Alpha employee attempted to interpret the image. The employee reported the image as negative for any chronic conditions when in fact, the image revealed mild congestive heart. Based on the incorrect reading of the chest X-ray, the patient was cleared for the elective surgery, which resulted in significant complications and the worsening of the patient’s congestive heart failure. The patient died on May 7, 2012. The indictment alleges that, if the chest X-ray had been properly interpreted, the patient would not have been cleared for surgery and would not have died at that time. Subsequently, Alpha Diagnostics submitted a claim to Medicare falsely representing that a licensed radiologist had interpreted the patient’s chest X-ray. Medicare paid Alpha Diagnostics $218.36 for this claim.
Further, according to the superseding indictment, Chikvashvili and Alpha Diagnostics routinely submitted insurance claims to Medicare and Medicaid that, among other things, exaggerated the services performed by its technologists or exceeded the services ordered by the treating physician; overcharged for transportation costs; and falsely represented that Alpha Diagnostics was properly overseen by supervising physicians.
Finally, the superseding indictment seeks forfeiture of at least $7.5 million, including two properties, luxury vehicles, bank and investment accounts, and a safe deposit box.
Chikvashvili faces a maximum sentence of life in prison for the conspiracy and for each of four counts of health care fraud resulting in serious bodily harm and death; 10 years in prison for each of seven counts of health care fraud; 20 years in prison for each of eight counts of wire fraud; a maximum of five years in prison for each of 11 counts of false statements relating to health care matters; and a mandatory two years, consecutive to any other sentence imposed, for two counts of aggravated identity theft.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Timothy Emeigh, age 51, of York Springs, Pennsylvania previously pleaded guilty to health care fraud and is awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the HHS-OIG and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and P. Michael Cunningham, who are prosecuting the case.
Mt. Pleasant Woman Pleads Guilty to EmbezzlementRead the Press Release
A Mt. Pleasant, Michigan resident pleaded guilty to embezzlement and filing false tax returns with the Internal Revenue Service, United States Attorney Barbara L. McQuade announced today.
United States Attorney McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division and Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation.
On April 8, 2015, Kimberly Misky entered her guilty plea before U.S. Magistrate Judge Patricia L. Morris.
According to court records, Misky was the branch manager of Citizens Bank in Alpena, Michigan. In her role as manager, Misky managed other bank employees, opened new accounts, renewed certificates of deposit and generated sales.
Beginning in April 2010 and continuing through July 2011, Misky used her positions as branch manager and personal banker to open Citizens Bank accounts that she controlled, in the names of fictitious individuals. She then accessed the certificates of deposit account of elderly and deceased Citizens Bank customers and transferred the funds from those accounts to the accounts she controlled. Later, Misky transferred the funds from the accounts in the fictitious names to an account at another financial institution that was in her name and her daughter’s name. Overall, Misky embezzled approximately $86,489 in 2010 and $222,983 in 2011.
“The public has every right to expect that the employees of the banks that they entrust their money with will be honest and law abiding. Ms. Misky violated this trust for her own financial gain and is now facing serious criminal sanctions as a result of her actions”, said Special Agent in Charge Jarod J. Koopman.
Embezzlement carries a maximum penalty of 30 years imprisonment and/or a fine of $1,000,000. Filing a false tax return carries a maximum penalty of 3 years imprisonment and/or a fine of $250,000.he case was investigated by special agents of the IRS Criminal Investigation, FBI and prosecuted by Assistant U.S. Attorney Libby Kelly Dill.
Montgomery Man Found Guilty of Federal Carjacking, Drug Crimes and Gun CrimesRead the Press Release
Montgomery, Alabama – Seandarius Savage (21), a resident of Montgomery, Alabama, was found guilty on Wednesday of carjacking, drug trafficking, and gun offenses, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
Previously, a federal grand jury indicted Savage on criminal charges that occurred on two separate occasions. The first two charges were possession of marijuana with intent to distribute, and possession of a firearm in furtherance of a drug-trafficking crime. Those two crimes were committed in Montgomery, Alabama. The remaining two charges of carjacking and using a firearm during the carjacking occurred in Wetumpka, Alabama.
According to the evidence presented at trial, Savage was found with one pound of marijuana, a firearm, and over $4500 in cash on August 21, 2013 in Montgomery. Evidence also showed that Savage broke into a Wetumpka home wearing a mask and used a gun to take a vehicle. Upon questioning by law enforcement, Savage admitted that the marijuana belonged to him and that the money was from selling drugs. Savage also admitted to going to the Wetumpka residence in disguise to commit a robbery, but he denied the carjacking. After hearing the evidence presented at trial, a jury found Savage guilty of all four-counts in the indictment.
Savage faces a minimum sentence of thirty (30) years and a maximum of life in prison. There is no parole in the federal system. Savage is currently in the custody of the United States Marshals Service pending his sentencing hearing which is due to be scheduled.
“Drug trafficking and violent crimes endanger our communities and place innocent lives at risk,” stated U.S. Attorney Beck. “I commend law enforcement involved in this case for bringing a violent felon to justice.”
“This verdict marks another success for the FBI’s Central Alabama Safe Streets Violent Gang Task Force,” stated Special Agent in Charge Robert F. Lasky from the Federal Bureau of Investigation. “The FBI and our law enforcement partners are committed to policing and preventing violence and drug trafficking in Alabama.”
“This investigation will have a lasting impact on reducing firearm related violence,” said Glenn Anderson, Special Agent in Charge from the Bureau of Alcohol, Tobacco, Firearms and Explosives. “The convictions demonstrate ATF and our partners continued dedication to identify violent criminals who lessen the quality of life in our neighborhoods.”
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Montgomery Police Department, and the Elmore County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Hollie Worley and Jerusha T. Adams.
Mexican National Sentenced to over 12 Years in Prison for Aggravated ID Theft and Drug and Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — A Mexican national was sentenced today to 12 years and one month in prison for possessing methamphetamine with intent to distribute, unlawfully possessing a firearm, and aggravated identity theft arising from false statements he made in an application for a U.S. passport, United States Attorney Benjamin B. Wagner and U.S. Department of State, Diplomatic Security Service Special Agent-In-Charge David Zebley announced.
According to court documents, Eliecer Reyes Huerta, 31, had been removed from the United States in 2006 and lacked lawful immigration status to be in the United States. On July 30, 2012, Huerta submitted an application for a U.S. passport to a passport acceptance officer in Vallejo. In the application, Huerta provided a false name belonging to a real person, a false birthdate, and a false birthplace in Puerto Rico. Huerta presented a birth certificate issued for the ID theft victim and a California driver’s license bearing Huerta’s photograph and the victim’s name and birthdate. Agents searched Huerta’s residence in Vallejo and found baggies containing methamphetamine, cocaine, and marijuana; two digital scales, miscellaneous supplies and substances that may be used in the manufacture of controlled substances. In Huerta’s bedroom closet, agents found a 9 mm semi-automatic Sig Sauer Model P226 handgun. Next to the firearm was a Sig Sauer handgun magazine loaded with seven rounds of 9 mm ammunition. Two children were living in the home at the time of the search.
“Individuals who use false or stolen identities are often engaged in other dangerous criminal activities and are a threat to the citizens of the United States," said David Zebley, Special Agent-In-Charge of the Diplomatic Security Service's San Francisco Field Office. “The Diplomatic Security Service is committed to investigating and pursuing anyone who applies for or obtains a United States passport using false documents, particularly when a U.S. Citizen's identity is stolen.”
This case was the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Department of Motor Vehicles. Assistant United States Attorney Nirav Desai prosecuted the case.
Docket #: 2:13-cr-408-GEB
Melrose Park Police Department Detective Arrested for Possession with Intent to Distribute Cocaine and Illegal Firearm PossessionRead the Press Release
CHICAGO — A Melrose Park detective was arrested yesterday for allegedly attempting to possess with intent to distribute five kilograms or more of cocaine and possession of a firearm in furtherance of a drug trafficking crime. The defendant, GREGORY SALVI, was arrested following an investigation by the Chicago Office of the Federal Bureau of Investigation.
Salvi, 42, of Melrose Park, was charged by criminal complaint that was unsealed following his initial appearance today. He appeared today before Magistrate Judge Jeffery Cole in U.S. District Court and is scheduled for a detention hearing on Tuesday, April 14, at 10:15 a.m.
As set forth in the complaint affidavit, on April 9, 2015, Salvi attempted to possess with intent to distribute five kilograms or more of cocaine, which he expected to deliver to the informants in return for money. The complaint further charges that Salvi was carrying a loaded Glock .45 caliber handgun and driving a police vehicle at the time he attempted to obtain cocaine.
Also according to the complaint affidavit, the defendant used his position as a law enforcement officer with the Melrose Park Police Department in order to unlawfully acquire narcotics from the Melrose Park Police Department. It is alleged in the complaint that Salvi twice stole narcotics held in evidence by the Melrose Park Police Department, which he then distributed to two individuals who, unbeknownst to Salvi, were cooperating with law enforcement. Specifically, in November 2014, Salvi distributed heroin to a cooperating individual. Then, in December 2014, Salvi distributed cocaine to a cooperating individual. According to statements made by the Salvi, on one occasion Salvi used his position as a law enforcement officer to take real narcotics from the police evidence storage, which Salvi replaced with fake narcotics, and Salvi planned to sell the real narcotics to narcotics traffickers.
Also, according to the complaint affidavit, during recorded conversations in January and February 2015, Salvi offered to sell two kilograms of cocaine to a cooperating individual that were being tested by a local laboratory for the police department. During that same time period, Salvi offered to procure firearms for a cooperating individual, and offered to help remove the firearms’ serial numbers.
The arrest and complaint were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the FBI. The Melrose Park Police Department is fully cooperating in the investigation.
If convicted of both charges in the complaint, intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, the defendant could be sentenced to a mandatory minimum sentence of 15 years’ imprisonment, a maximum of life imprisonment, and a maximum fine of $10 million. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Patrick Otlewski.
A complaint contains merely charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Man Sentenced on Child Pornography ChargesRead the Press Release
PLATTSBURGH, NEW YORK – Frank Daniels, 37, of Gouverneur, New York, was sentenced yesterday in federal court in Utica to 5 years in prison followed by 15 years of supervised release for distribution, receipt, and possession of child pornography announced United States Attorney Richard S. Hartunian and Homeland Security Investigations (HSI) Resident Agent in Charge Russell Linstad.
"The sharing and distribution of child pornography images is not a victimless crime," stated United States Attorney Richard S. Hartunian. "The children in such photos are abused, violated and humiliated. Our office will continue to vigorously prosecute those who perpetuate their trauma by gathering and sharing such images."
"Sexually exploiting children is a horrendous crime that has long-term traumatic effects on the most vulnerable individuals in our society," said Resident Agent in Charge Linstad. "HSI will continue to work aggressively with our law enforcement partners to identify and apprehend predators who exploit our children and steal their innocence."
On December 3, 2014, Daniels pled guilty to distribution, receipt, and possession of child pornography. As part of the investigation, law enforcement officials seized Daniels’ computers and found 234 videos depicting children engaged in sexually explicit conduct which he downloaded from the Internet.
Homeland Security Investigations Massena, NY investigated the case. Assistant United States Attorney Katherine Kopita prosecuted it.
Lubbock Man Sentenced to 87 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 55-year-old Lubbock man, who admitted possessing prepubescent child pornography, was sentenced today, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Roberto Garcia was sentenced by U.S. District Judge Sam R. Cummings to 87 months in federal prison. Garcia, who has been on bond, was ordered to surrender to the Bureau of Prisons on May 15, 2015.
According to plea documents filed in the case, Garcia used a computer at his residence to, among other things, search for images and videos of child pornography. In the course of his searches, Garcia located, downloaded and viewed numerous images and videos constituting child pornography. He saved the material onto the computer’s hard disk drive. Some of the numerous images of child pornography that Garcia saved involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Local Woman Sentenced to Federal Prison for Tax Refund Fraud and Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Tashina Phillips, 30, of Tallahassee, was sentenced to federal prison this week by United States District Judge Mark E. Walker for theft of government property and aggravated identity theft. The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Between 2012 and 2013, Phillips cashed more than $50,000 in fraudulent IRS tax refund checks using other people’s personal identification information. In this scheme, Phillips paid a portion of the fraudulent proceeds to the individual who initially prepared the fraudulent tax return, and she also paid a commission to the individual who cashed the fraudulent refund check for her. In some instances, Phillips obtained fraudulent power of attorney forms to cash the fraudulent refund checks.
Phillips was sentenced to 48 months in federal prison, 3 years of supervised release, and was ordered to pay $52,324.50 in restitution to the Internal Revenue Service.
“With the tax deadline only five days away, this sentence serves as an important reminder of carefully guarding personal information,” said U.S. Attorney Marsh. “Stolen identity tax refund fraud is harmful to all honest taxpayers, and we are grateful to our law enforcement partners who help bring these thieves to justice.”
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation and the United States Secret Service. It was prosecuted by Assistant United States Attorney James M. Ustynoski.
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.
Jury in Midland Convicts Four on Federal Drug and Firearm Charges in Connection with a HomicideRead the Press Release
In Midland, a federal jury convicted four Odessa residents for their role in a Permian Basin drug distribution scheme involving firearms and resulting in murder announced Acting United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist and Odessa Police Chief Timothy Burton.
Jurors convicted 40-year-old Raymond Hernandez Olgin, Jr., 34–year-old Rudolfo Romero Parades, 40-year-old Stacey Louise Castillo, and 32–year-old Anthony Ryan Gonzales of conspiracy to possess with intent to distribute a controlled substance, possession of a firearm in relation to a drug trafficking crime, and murder during the course of a drug trafficking crime.
Prior to jury selection, 35–year-old Liz Sanchez Hernandez pleaded guilty to the charge of murder during the course of a drug trafficking crime. Her son, 18-year-old Brian Adan Hernandez, pleaded guilty to the drug conspiracy charge. Liz Hernandez and Brian Hernandez face up to 30 years and up to five years in federal prison, respectively, when they are scheduled to be sentenced next month.
Evidence presented at trial revealed that the defendants were involved in the abduction and murder of Sean Michael Lamb because they suspected that Lamb and others had stolen a large amount of “crystal” methamphetamine from Liz Hernandez and her brother, 34-year-old Ruben James Hernandez.
On May 13, 2014, Odessa Police responded to a “shots fired” call in the alley behind #30 Neta Place in Odessa. There they discovered Lamb’s body with multiple gunshot wounds to the head and torso. Evidence presented during trial revealed that 35–year-old Noe Garcia Galan, accompanied by Olgin and Paredes, shot and killed Lamb for stealing the "crystal" methamphetamine. Jurors found this act to be a first degree premeditated murder.
Testimony during trial revealed that Castillo not only participated in the drug distribution operation as well as the murder of Lamb, but on the evening of May 14, 2014, she and Gonzales drove Ruben Hernandez to the international border in Presidio, TX, so he could escape into Mexico in exchange for an introduction to a narcotics supplier she could use in the future.
Olgin, Parades, Castillo and Gonzales face up to 20 years in federal prison on the drug conspiracy charge; a mandatory consecutive seven years imprisonment on the firearms charge; and, up to life in federal prison on the charge of murder during the course of a drug trafficking crime. Sentencing is scheduled for June 25, 2015. Noe Galan and Ruben Hernandez remain fugitives. They are charged by indictment with conspiracy to possess with intent to distribute a controlled substance, possession of a firearm in relation to a drug trafficking crime, and murder during the course of a drug trafficking crime.
This indictment resulted from an investigation conducted by the Odessa Police Department and the FBI with assistance from Homeland Security Investigations (HSI), Texas Department of Public Safety (DPS), Texas Rangers, and the U.S. Border Patrol. Assistant United States Attorneys John Klassen and William F. Lewis, Jr., are prosecuting this case on behalf of the Government.
Jury Convicts Holyoke Man for Distributing HeroinRead the Press Release
BOSTON – Following a four-day trial, a Holyoke man was convicted today of distributing heroin at a strip mall in Holyoke and outside a bank in Springfield.
Luzander Montoya, 28, was convicted of possession with intent to distribute and distribution of heroin on three separate occasions in 2012. Montoya, who was indicted in March of 2013 is scheduled to be sentenced by U.S District Court Judge Timothy Hillman on July 10, 2015.
In March 2013, Montoya was arrested along with ten other men after a police raid in Holyoke. Montoya was caught on video selling heroin three times to a cooperating witness in August and September 2012. During the third deal, Montoya exchanged 200 bags of heroin for $750 in cash. He did the deal in his car as his young child sat in a car seat in the back seat.
“This case highlights the opioid epidemic we are facing in Massachusetts and the conviction emphasizes the U.S. Attorney’s Office’s commitment to combating the influx of heroin in western Massachusetts,” said United States Attorney Carmen M. Ortiz.
“The heroin epidemic is a huge problem and this case is another example of the FBI’s ongoing efforts to target the problem and make our neighborhoods safer,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division.
The charging statute provides a sentence of no greater than 20 years in prison, a minimum of three years of supervised release on each count, and a fine of up to $1 million. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz and SAC Lisi made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Deepika Bains Shukla and Kevin O’Regan of Ortiz’s Springfield Branch Office.
Isaiah M. Samelton Sentenced for Felon in Possession of A FirearmRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Isaiah M. Samelton, 20, of South Bend, Indiana, was sentenced today, for being a felon in possession of a firearm.
Samelton was sentenced to 42 months imprisonment and 3 years of supervised release.
According to documents in the case, on May 1, 2014, Samelton, a convicted felon, was caught possessing a semi-automatic pistol that was loaded and had a round in the chamber. Samelton endangered the lives of police and citizen motorists when he fled from police going more than 100 mph and when he tossed the loaded gun from his car, which was recovered by police.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Indiana State Police, and the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Donald J. Schmid.
Heroin Trafficker, Probation Violator Sentenced to Nearly 6 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Andres Garay, 28, of Cranston, was sentenced today to 69 months in federal prison for trafficking more than 100 grams of heroin and for violating the terms of his federal probation on a previous drug trafficking conviction.
Garay pleaded guilty on January 23, 2015, to one count of possessing with the intent to deliver more than 100 grams of heroin. At the time of his arrest in June 2014, Garay was serving a term of five years federal probation imposed in August 2011, for possession of cocaine with the intent to distribute.
Garay’s sentence, imposed by U.S. District Court Chief Judge William E. Smith, is announced by United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
According to information presented to the court, on June 25, 2014, Providence Police encountered Garay outside a residence and he was found to be in possession of two glassine packets of heroin. A subsequent investigation at the scene led Providence Police to believe that additional quantities of heroin may be stored inside that residence. A court authorized search of the residence resulted in the seizure of 1,850 glassine packets containing various amounts of heroin, two coffee grinders with a total of more than 118 grams of heroin, and various items used in the packaging and distribution of heroin.
Garay has been detained since his arrest on June 25, 2014.
The case was prosecuted by Assistant U.S. Attorney Adi Goldstein.
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Contact: 401-709-5357
[email protected]Greenwood Man Pleads Guilty to Conspiring to Defraud the VARead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Charles B. Harris, age 48, of Ninety-Six, South Carolina, pled guilty yesterday in federal court in Anderson, to conspiracy to defraud the United States. United States District Judge Timothy M. Cain of Anderson accepted the plea and will sentence Harris after the U.S. Probation Office has prepared a pre-sentence report.
Evidence presented at the change of plea hearing established that from 2011-2014 Harris owned and operated the Greenwood Barber College. The school was approved by the VA to teach veterans the skill of barbering. Harris was the certifying official who agreed to accurately monitor and report student attendance and academic progress.
In December 2013, the Department of Veterans Affairs received a complaint that Harris was conspiring with various veterans in stealing Government funds. Agents opened an investigation and interviewed several of Harris’ students. The students told agents that so long as they paid Harris $400 per month, he did not require them to attend class. Harris would falsify documents indicating their attendance and progress so the students could continue to receive VA educational benefits.
On February 6, 2014, agents interviewed Harris at the Greenwood Barber College. Harris admitted to helping veterans sign up for the Veteran Retraining Assistance Program (“VRAP”) and other VA programs offering financial aid for career training. He would then enroll them in the Greenwood Barber College. Harris admitted that he would not require the veterans (whether VRAP or another program) to actually attend classes at the Greenwood Barber College and that he would falsify records documenting the attendance and performance of the veterans. So long as the veterans paid Harris $400 per month, he kept them enrolled in the school. Harris said that he knew what he did was wrong and was he was sorry. Agents estimate that the actual loss to the VA is greater than $140,000.
Mr. Nettles states that the maximum penalty Harris could face is 5 years in prison, and/or a $250,000 fine, 3 years of supervised release, and a special assessment of $100.
The case was investigated by agents of the Department of Veterans Affairs, Office of the Inspector General. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Grand Jury Returns Indictment Against Robert Durst for Being a Felon in Possession of a FirearmRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced the return of an Indictment today charging ROBERT DURST, age 71, with the crime of being a felon in possession of a firearm.
The Indictment charges that DURST, on or about March 14, 2015, unlawfully possessed a Smith and Wesson .38 caliber revolver, after having previously being convicted of crimes punishable by imprisonment for a term exceeding one year, to wit: two convictions in 2004, in case number 04-667 in the Eastern District of Pennsylvania, for, respectively, possessing a firearm while under indictment, in violation of 18 U.S.C. § 922(n), and possessing a firearm while a fugitive from justice, in violation of 18 U.S.C. § 922(g)(2). The potential sentence in this case is a maximum 10 years incarceration in the Bureau of Prisons, a fine of $250,000, a maximum of three years of supervised release, and $100 special assessment fee.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Myles Ranier and Michael McMahon are in charge of the prosecution.
Robert Durst Indictment
Former Maryland Licensed Counselor Pleads Guilty to Conspiring to Sexually Exploit an InfantRead the Press Release
Baltimore, Maryland – Stephen H. Schaffner, age 34, of Greensboro, Maryland, pleaded guilty today to conspiring to sexually exploit a child and sexual exploiting a child, arising from the sexual abuse of a six week old baby who was born prematurely.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; United States Attorney for the Southern District of California Laura E. Duffy; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation - Maryland; Acting Special Agent in Charge Robert Howe of the Federal Bureau of Investigation – San Diego Division; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Jeff A. Jackson of the Greensboro Police Department and Chief David A. Spencer of the Easton Police Department.
“Thankfully, most technology companies continue to honor federal search warrants and most cellular phones can be searched with a warrant,” said U.S. Attorney Rod J. Rosenstein. “If telecommunications companies provide software and hardware that is immune from federal search warrants, pedophiles will be free to commit such egregious crimes with little risk of detection.”
According to his plea agreement, for over four years, Schaffner was a licensed associate counselor in Arizona, providing behavioral health and education services for children ages 11-17 whose lives and family relationships were in crisis, or who were struggling with mental health or substance abuse challenges.
Schaffner worked as a clinician in Easton, Maryland for 18 months, providing individual and family mental health counseling, including treatment for children and for sex offenders. In 2011 and 2012, Schaffner attended trainings and conferences focused on the assessment, management and treatment of sex offenders. On October 30, 2012, Schaffner sent an adult counseling client inappropriate text messages of a sexual nature. In November 2012, Schaffner was fired from the practice where he worked, and his license was later suspended.
Beginning in 2004, Schaffner collected child pornography he obtained from the internet. Thousands of images and videos of minors engaged in sexually explicit conduct were located on digital devices, storage media and online accounts seized from Schaffner. In his electronic communications, Schaffner repeatedly expressed a sexual interest in boys from “age zero” up, and his desire to commit violent sexual abuse against infants, including making the children cry during the abuse, and injuring or killing children in the course of sexual abuse. He discussed ways to ensure that the children did not report the abuse, including drugging or killing the children.
In late June 2014, Schaffner began communicating online with Michael Lutts who lived in California and worked as a pediatric nurse at a hospital in San Diego County. On August 4, 2014, Lutts brought to his home a six week old baby boy, born prematurely, who was placed in his care as a foster child. That evening, Lutts texted Schaffner images of the infant.
Over the next several hours, Schaffner exchanged numerous graphic and sexually explicit messages with Lutts about Lutts sexually abusing the infant. Schaffner directed Lutts to sexually abuse the infant to produce photos and videos. Lutts sent Schaffner images and videos with the infant, including images of the infant being sexually molested. Schaffner and Lutts discussed Schaffner travelling to San Diego to rape the infant.
Law enforcement obtained a federal search warrant in April 2014 for an email address of a person who was distributing child pornography, which led them to other suspects who were transmitting child pornography. On August 26, 2014, authorities obtained a search warrant for Michael William Lutts’s residence in San Diego, and seized a cell phone that contained images and videos of Lutts sexually molesting the infant. Michael Lutts has pleaded guilty in federal court in the Southern District of California to three counts of sexual exploitation of a child and is scheduled to be sentenced on April 20, 2015.
As part of his plea agreement, Schaffner must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Schaffner and the government have agreed that if the Court accepts the plea agreement Schaffner will be sentenced to 35 years in prison followed by up to a lifetime of supervised release. U.S. District Judge J. Frederick Motz scheduled sentencing for July 9, 2015 at 10:00 a.m.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI’s Baltimore and San Diego offices, the Maryland State Police Interstate Crimes Against Children Task Force (ICAC), the San Diego, California ICAC, Greensboro Police Department, and Easton Police Department for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Alessandra P. Serano from the Southern District of California who is prosecuting the case against Michael Lutts, and Assistant U.S. Attorney Zachary A. Myers from Maryland, who is prosecuting the case against Stephen Schaffner.
Former Executive Vice President Sentenced to Serve 15 Months in Federal Prison in Connection with the Failure of Freedom State BankRead the Press Release
Oklahoma City, Oklahoma – MARK A. NIXON, 62, from Freedom, Oklahoma, former Executive Vice President of The Freedom State Bank in Freedom, Oklahoma, was sentenced yesterday by United States District Judge Stephen P. Friot for his involvement in the Bank’s failure on June 27, 2014, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On December 15, 2014, Nixon pled guilty and admitted to preparing and submitting a Consolidated Report of Condition and Income to the FDIC which falsely stated that The Freedom State Bank possessed $21,950,000.00 in assets, when he in fact knew that the true amount was substantially less.
In the sentencing hearing yesterday, Nixon was ordered to serve 15 months in prison, followed by one year of supervised release, and was ordered to pay $1,557,808.89 in restitution to the FDIC. He was ordered to report to the Bureau of Prisons on May 14, 2015, to begin serving his sentence.
This case is the result of an investigation by the FDIC Office of Inspector General. It was prosecuted by Assistant U.S. Attorney Julia E. Barry.
Former Executive and Finance Directors of Alaska Tribal Organization Plead Guilty to Stealing FundsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that the former Executive Director and the former Finance Director of the Alaska Inter-Tribal Council (AITC), a non-profit organization which advocates in support of tribal governments throughout Alaska, each plead guilty in federal court in Anchorage to felony charges related to their theft of funds belonging to the organization. The former Executive Director of AITC, Steven D. Osborne, 44, of Fairbanks, and the former Finance Director, Thomas R. Purcell, 51, of Anchorage, each plead guilty to one count of theft of funds from an organization receiving federal funding.
According to Assistant U.S. Attorneys Joseph Bottini, the Alaska Inter-Tribal Council received substantial federal funding in 2008 and 2009 – including a federal grant from the United States Environmental Protection Agency in excess of one million dollars. As officers of AITC, Osborne and Purcell each had access to AITC bank accounts, and Osborne additionally had credit and debit cards issued to him by the organization. The investigation established that Osborne and Purcell were able to steal the funds through a number of different ways, including cash withdrawals, credit and debit card transactions, the submission of false time cards, and unauthorized salary increases.
Osborne and Purcell were each indicted by a federal grand jury in August 2013 for stealing AITC funds. Under the terms of Purcell’s plea agreement with the government, he admitted to taking approximately $22,720 in AITC funds which he was not entitled to. Osborne admitted to taking at least $5,000 of AITC funds, with the total amount of money which he obtained through theft and misapplication to be established at his sentencing.
United States District Court Judge Sharon L. Gleason scheduled sentencing for Osborne on June 30, 2015, and for Purcell on July 1, 2015. Each defendant faces a sentence of up to 10 years imprisonment and a fine of up to $250,000.00.
Ms. Loeffler commends the U.S. Environmental Protection Agency and the Federal Bureau of Investigation for the investigation of this case.
Former Community Health Clinic CFO Agrees to Plead Guilty in Scheme to Defraud Millions from GovernmentRead the Press Release
BIRMINGHAM -- The former financial officer of two non-profit health clinics in Alabama for the poor and homeless has agreed to plead guilty to multiple federal charges related to a scheme to defraud millions of dollars from the clinics and the federal government health agencies that provide most of their funding.
Prosecutors today filed a plea agreement in U.S. District Court with TERRI McGUIRE MOLLICA, 48, of Birmingham. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office Special Agent in Charge Derrick L. Jackson, announced the agreement.
As part of the agreement, Mollica agrees voluntarily to forfeit $938,211 that the government seized last year from her investment and credit union accounts. Mollica acknowledges those funds are proceeds of illegal activity.
A federal grand jury indicted Mollica late last year on 74 counts related to the scheme to defraud the government through the two health care clinics, Birmingham Health Care and Central Alabama Comprehensive Health Inc., five counts of filing false tax returns, and three counts related to her scheme to defraud a life insurance company.
In her agreement with prosecutors, Mollica agrees to plead guilty to 19 counts related to the fraud against the government -- six counts of wire fraud affecting a financial institution, eight counts of mail fraud affecting a financial institution and five counts of money laundering. She also agrees to plead guilty to four counts of filing false tax returns and to one count of mail fraud and one count of aggravated identity theft related to the insurance fraud. Mollica's plea hearing is scheduled April 27.
Mollica's crimes, as outlined in her indictment and plea agreement, are as follows:
Mollica was the chief financial officer of the non-profit Birmingham Health Care from April 2005 through November 2008. She also performed fiscal duties for Central Alabama Comprehensive Health Inc. CACH is a non-profit clinic in Tuskegee intended to provide primary and preventative health care to people in east Alabama, regardless of their ability to pay. BHC's chief executive officer served for a time as the chief executive officer of the Tuskegee clinic and, in 2008, BHC took over fiscal responsibility of CACH.
Between January 2008 and March 2012, Mollica aided others in diverting about $11 million in federal grant money, assets and property of BHC and CACH to numerous private entities using "Synergy" in the name. Mollica and others retained authority over the affairs of BHC and CACH as they operated the Synergy entities. Mollica then conducted financial transactions to transfer money from the private entities to herself and others, illegally receiving about $1.7 million through the scheme.
BHC began receiving grants from the Health Resources and Human Services Administration, an arm of the U.S. Department of Health and Human Services, more than 20 years ago. Federal grants administered by HRSA and HHS constitute the overwhelming majority of BHC and CACH funding.
Mollica and others misrepresented and concealed information from HRSA to ensure the agency would continue to grant money to the Birmingham and Tuskegee community health clinics.
The maximum penalties for the offenses charged are as follows:
- mail and wire fraud, 20 years in prison and a $250,000 fine;
- money laundering (counts 56, 60 & 68), 20 years in prison and a $500,000 fine, or twice the value of the property involved;
- money laundering (counts 70 -73) involving criminally derived property valued at more than $10,000, 10 years in prison and a $250,000 fine;
- aggravated identity theft, mandatory two years in prison added to any sentence imposed for the underlying felony and a $250,000 fine;
- filing a false tax return, three years in prison and a $100,000 fine.
The FBI, IRS and HHS-OIG investigated the case. Assistant U.S. Attorneys Tamarra Matthews Johnson and Melissa Kay Atwood are prosecuting the case.
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Former Chief Financial Officer of San Francisco Company Sentenced to 70 Months in PrisonRead the Press Release
SAN FRANCISCO– Henry Lo was sentenced today to 70 months in prison for committing wire fraud and mail fraud, announced United States Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David J. Johnson and United States Postal Inspection Service Inspector in Charge Rafael Nuñez.
Lo, 51 of San Francisco, pleaded guilty on November 20, 2014, to two counts of wire fraud and one count of mail fraud. According to the plea agreement, Lo admitted he held the position of Chief Financial Officer (CFO) (and other positions) at a company in San Francisco known as AbsolutelyNew, Inc. (ANI). Lo admitted that during the period January 2008 to February 2012 he (1) used ANI funds to make payments of $239,052.76 to his personal American Express account; (2) caused ANI funds totaling $564,310.54 to be paid to a PayPal account that he controlled; (3) used ANI funds to purchase more than $1.35 million in cashier’s checks, which he either deposited into his personal brokerage account at Charles Schwab & Co. (Schwab) or used to pay down his personal line of credit at Wells Fargo Bank; and (4) used a debit card connected to ANI’s bank account at Bank of America to make purchases for numerous personal items totaling at least $30,329.50.
In addition, Lo admitted he engaged in a separate scheme to defraud a person identified in the Indictment and Plea Agreement as “A.W.” Specifically, Lo admitted he induced A.W. to write him checks made payable to Schwab, which Lo purported would then be wired to the IRS on A.W.’s behalf to pay A.W.’s tax obligations. Instead, Lo deposited checks from A.W. totaling more than $125,000 into his own wife’s Schwab brokerage account, and then forged and mailed confirmation statements to A.W. that purported to be from Schwab.
Lo was indicted by a federal grand jury on August 19, 2014. He was charged with wire fraud, access device fraud, and mail fraud.
The sentence was handed down by the Honorable William H. Orrick, U.S. District Judge, following a guilty plea on two counts in violation of 18 U.S.C. § 1343 (wire fraud) and one count in violation of 18 U.S.C. § 1341 (mail fraud). Judge Orrick also sentenced the defendant to a three-year period of supervised release, a fine of $10,000, restitution of $2,232,894.39, and a forfeiture money judgment in an equivalent amount. The defendant had previously been remanded into custody by Magistrate Judge Maria-Elena James and will begin serving the sentence immediately.
Assistant U.S. Attorneys Kyle F. Waldinger and David Countryman are prosecuting the case with the assistance of Jessica Meegan, Mary Mallory, Allen Williams, and Carolyn Jusay. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service.
Former Carrollton, Texas, Man Who Worked as A Long-Haul Truck Driver, Sentenced to 20 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A 35-year-old long haul truck driver, who most recently resided in Carrollton, Texas, was sentenced this morning on a child pornography conviction, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
James Marshall Thomas was sentenced by U.S. District Judge Sidney A. Fitzwater to 20 years in federal prison to be followed by a lifetime of supervised release. Thomas pleaded guilty in November 2014 to one count of transportation of child pornography; he has been in custody since his arrest in September 2014.
According to documents filed in the case, the National Center for Missing and Exploited Children received a cybertip in June 2012 that an individual, later identified as Thomas, had emailed images of child pornography to another specific email address. While a federal search warrant was being drafted, FBI special agents discovered that Thomas had moved out of his apartment in Carrollton and that he worked as a cross-country truck driver.
Approximately two years later, FBI special agents located Thomas at a freight delivery destination. He gave them permission to search his laptop computer where agents discovered that he had responded to an advertisement on Craigslist by stating, in part, “pedo perv here.” They also discovered child pornography on the laptop and seized it, as well as a thumb drive.
A forensic analysis revealed that Thomas had searched for child pornography using various search terms indicative of raping young boys. In addition, Skype artifacts were also located that included chat logs of other like-minded individuals discussing the rape of young boys. Thomas also used Skype to receive and transport files of child pornography on multiple occasions. The analysis further revealed that Thomas had accessed several child pornography videos of prepubescent children. In all, approximately 400 images and 28 videos of child pornography, including sadistic acts involving minors, were located on his computer and thumb drive.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Former Acclarent, Inc. Executives Charged with Securities Fraud and Crimes Related to Sale and Distribution of Medical DevicesRead the Press Release
BOSTON – The former Chief Executive Officer and Vice President of Sales of Acclarent, Inc., a medical device company, were charged in an indictment unsealed today with conspiracy, securities fraud, wire fraud and violations of the Food, Drug and Cosmetic Act.
William Facteau, 45, of Atherton, California, and Patrick Fabian, 48, of Lake Elmo, Minnesota, were indicted on one count of conspiracy, three counts of securities fraud, four counts of wire fraud and 10 counts of introducing adulterated or misbranded medical devices into interstate commerce.
The indictment alleges that Facteau and Fabian engaged in a scheme to fraudulently drive up Acclarent revenues and stock valuation by illegally marketing a medical device known as the Relieva Stratus Microflow Spacer (“Stratus”) for uses not cleared or approved by the United States Food and Drug Administration (“FDA”). Despite the fact that the company had told the FDA that the Stratus was a medical device intended to maintain an opening to a patient’s sinus, Facteau and Fabian launched the product intending it to be used as a steroid delivery device. The indictment alleges, however, that the FDA had specifically refused Acclarent’s request to clear the Stratus for marketing as a drug delivery device without further submissions to support that use.
Facteau and Fabian are alleged to have sought to quickly develop and market products to create a projected revenue stream that would make Acclarent an attractive target for either an initial public offering (“IPO”) or acquisition. The former health care executives allegedly concealed Acclarent’s illegal promotion and distribution of the Stratus as a steroid delivery device from potential purchasers of the company, including Ethicon, Inc., a subsidiary of Johnson & Johnson, (together, “Ethicon”). In early 2010, Ethicon purchased Acclarent for approximately $785 million. Facteau and Fabian received approximately $30 million and $4 million, respectively, for stock options and other compensation in connection with the merger of Acclarent into Ethicon.
The charging statutes provide for a maximum prison sentence of up to 20 years on each count of wire fraud and securities fraud, five years for the conspiracy count, and three years for each count for violations of the Food, Drug and Cosmetic Act, followed by a term of supervised release and a $250,000 fine or twice the gross loss or gain, whichever is greater. 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.
The details 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.
The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom and Patrick Callahan of the District of Massachusetts with the assistance of Trial Attorney Ross Goldstein of the Civil Division’s Consumer Protection Branch in Washington, DC and Beth Weinman in the FDA’s Office of General Counsel. The case was investigated by the Federal Bureau of Investigation’s Boston Field Division; the FDA’s Office of Criminal Investigations; U.S. Department of Health and Human Services’ Office of the Inspector General; Department of Defense Office of Criminal Investigation; and the Department of Veterans Affairs’ Office of Inspector General.
Former Acclarent, Inc. Executives Charged with Securities Fraud and Crimes Related to Sale and Distribution of Medical DevicesRead the Press Release
BOSTON – The former Chief Executive Officer and Vice President of Sales of Acclarent, Inc., a medical device company, were charged in an indictment unsealed today with conspiracy, securities fraud, wire fraud and violations of the Food, Drug and Cosmetic Act.
William Facteau, 45, of Atherton, California, and Patrick Fabian, 48, of Lake Elmo, Minnesota, were indicted on one count of conspiracy, three counts of securities fraud, four counts of wire fraud and 10 counts of introducing adulterated or misbranded medical devices into interstate commerce.
The indictment alleges that Facteau and Fabian engaged in a scheme to fraudulently drive up Acclarent revenues and stock valuation by illegally marketing a medical device known as the Relieva Stratus Microflow Spacer (“Stratus”) for uses not cleared or approved by the United States Food and Drug Administration (“FDA”). Despite the fact that the company had told the FDA that the Stratus was a medical device intended to maintain an opening to a patient’s sinus, Facteau and Fabian launched the product intending it to be used as a steroid delivery device. The indictment alleges, however, that the FDA had specifically refused Acclarent’s request to clear the Stratus for marketing as a drug delivery device without further submissions to support that use.
Facteau and Fabian are alleged to have sought to quickly develop and market products to create a projected revenue stream that would make Acclarent an attractive target for either an initial public offering (“IPO”) or acquisition. The former health care executives allegedly concealed Acclarent’s illegal promotion and distribution of the Stratus as a steroid delivery device from potential purchasers of the company, including Ethicon, Inc., a subsidiary of Johnson & Johnson, (together, “Ethicon”). In early 2010, Ethicon purchased Acclarent for approximately $785 million. Facteau and Fabian received approximately $30 million and
$4 million, respectively, for stock options and other compensation in connection with the merger of Acclarent into Ethicon.
The charging statutes provide for a maximum prison sentence of up to 20 years on each count of wire fraud and securities fraud, five years for the conspiracy count, and three years for each count for violations of the Food, Drug and Cosmetic Act, followed by a term of supervised release and a $250,000 fine or twice the gross loss or gain, whichever is greater. 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.
The details 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.
The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom and Patrick Callahan of the District of Massachusetts with the assistance of Trial Attorney Ross Goldstein of the Civil Division’s Consumer Protection Branch in Washington, DC and Beth Weinman in the FDA’s Office of General Counsel. The case was investigated by the Federal Bureau of Investigation’s Boston Field Division; the FDA’s Office of Criminal Investigations; U.S. Department of Health and Human Services’ Office of the Inspector General; Department of Defense Office of Criminal Investigation; and the Department of Veterans Affairs’ Office of Inspector General.
Florida Man Sentenced to More Than 8 Years in Prison for Multimillion Dollar Drug TheftRead the Press Release
AMAURY VILLA, 40, a citizen of Cuba last residing in Miami, Florida, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 98 months of imprisonment, followed by three years of supervised release, for his role in the theft of pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Conn. Judge Arterton ordered the sentence to run concurrently with a 140-month sentence that VILLA is serving on a related federal conviction.
According to court documents and statements made in court, in early 2010, AMAURY VILLA, Amed Villa, Yosmany Nunez and Alexander Marquez planned to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield. Prior to the theft, AMAURY VILLA and Nunez traveled from Florida to Connecticut to gather information about the warehouse facility and the surrounding area. Shortly before the theft, Amed Villa and Rafael Lopez traveled to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.
In the evening of March 13, 2010, individuals involved in the theft dropped off a ladder in the rear parking lot of the warehouse facility and left. That same night, Marquez drove a tractor trailer to the facility. Thereafter, AMAURY VILLA and Amed Villa carried the ladder to the building, checked for security in the front area, climbed onto the roof, used the tools Amed Villa and Lopez had purchased to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. AMAURY VILLA, Amed Villa and Nunez then loaded more than 40 pallets of pharmaceuticals into the tractor trailer, which had been backed up to the loading dock of the warehouse.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued between $50 and $100 million.
The individuals who participated in the theft split up in Connecticut. Marquez then drove the tractor trailer to Florida, where he subsequently reunited with AMAURY VILLA, Amed Villa and Nunez so the pharmaceuticals could be transferred from the tractor trailer into self-storage units in the Miami area.
On October 14, 2011, law enforcement authorities searched a storage facility in Florida and recovered pharmaceuticals that had been stolen from the Enfield warehouse.
Judge Arterton ordered VILLA to pay restitution in the amount of $60,994,213.
VILLA has been detained since his arrest on May 3, 2012. On May 2, 2014, he pleaded guilty to one count of conspiracy, four counts of theft from an interstate shipment, and one count of interstate transportation of stolen property.
VILLA previously pleaded guilty in the Southern District of Florida to conspiracy and possession of stolen goods charges and, on November 26, 2012, he was sentenced to 140 months of imprisonment.
Amed Villa pleaded guilty in the District of Connecticut to conspiracy and theft charges related to the Enfield theft and his participation in multimillion dollar warehouse burglaries in Illinois, Virginia, Florida and Kentucky. He awaits sentencing.
Nunez, Marquez and Lopez pleaded guilty in the District of Connecticut and have been sentenced.
This matter is being investigated by the Federal Bureau of Investigation and the Enfield Police Department, with the assistance of several other U.S. Attorney’s Offices and federal, state and local law enforcement agencies that have been investigating large-scale thefts of pharmaceuticals and other products.
The case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito.
First Jamaican Man Extradited to the United States in Connection with International Lottery Scheme Pleads GuiltyRead the Press Release
A Jamaican man pleaded guilty today in the U.S. District Court in the Southern District of Florida in Fort Lauderdale to one count of conspiracy to commit wire fraud, the Justice Department announced today.
Damion Bryan Barrett, 28, was extradited from Jamaica in February based on charges that he committed fraud as part of an international lottery scheme against elderly victims in the United States. The prosecution is part of the United States’ ongoing crackdown on fraudulent international lottery schemes.
“Scammers in foreign countries preying on elderly victims in the United States are not immune from prosecution in the United States,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This case demonstrates that we will bring those responsible to justice, wherever they may seek to hide.”
“The protection of the most vulnerable members of our society, including the elderly, is one of the top priorities of the Department of Justice and of our office, and this case again shows that an international border is no defense for those who defraud our senior citizens,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Regardless of where the criminals may be located, we will work together with our domestic and international law enforcement partners to bring them to the United States to hold them accountable for their crimes. In particular, we thank the Jamaican authorities for their cooperation and assistance in our continuing efforts to stamp out these long-running lottery schemes that target older Americans.”
Barrett was indicted by a federal grand jury in Fort Lauderdale on Aug. 9, 2012, and was arrested in Jamaica in January based on the United States’ request that he be extradited. On Feb. 12, Barrett was the first Jamaican to be extradited to the United States based on charges that he committed fraud as part of an international lottery scheme.
As part of his guilty plea, Barrett acknowledged that had the case gone to trial, the United States would have proved beyond a reasonable doubt that from 2008 through 2012, Barrett was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. Barrett also admitted that the United States would have proved that he knew the claims of lottery winnings were completely fabricated and that he and his co-conspirators kept the victims’ money for their own benefit without paying any lottery winnings. Barrett also admitted that the United States would have proved that in an effort to convince the victims that the lottery winnings were real, the conspirators sent the victims communications discussing their purported lottery winnings, which falsely claimed to be from a genuine sweepstakes company and from federal agencies including the Internal Revenue Service and the Federal Reserve. In fact, these communications were not from a genuine sweepstakes company or from agencies of the United States.
At his June 19 sentencing, Barrett faces a statutory maximum sentence of 30 years in prison and mandatory restitution. Barrett’s co-defendant, Oneike Barnett, 29, pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. On April 29, 2014, U.S. District Court Judge William J. Zloch sentenced Barnett to serve 60 months in prison and five years of supervised release, and to pay $94,456 in restitution for his role in this case.
Acting Assistant Attorney General Mizer and U.S. Attorney Ferrer commended the investigative efforts of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service and the U.S. Marshals Service. The case is being prosecuted by Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Bertha R. Mitrani of the Southern District of Florida.
First Jamaican Man Extradited to the United States in Connection with International Lottery Scheme Pleads GuiltyRead the Press Release
A Jamaican man pleaded guilty today in the U.S. District Court in the Southern District of Florida in Fort Lauderdale to one count of conspiracy to commit wire fraud, the Justice Department announced today.
Damion Bryan Barrett, 28, was extradited from Jamaica in February based on charges that he committed fraud as part of an international lottery scheme against elderly victims in the United States. The prosecution is part of the United States’ ongoing crackdown on fraudulent international lottery schemes.
“The protection of the most vulnerable members of our society, including the elderly, is one of the top priorities of the Department of Justice and of our Office, and this case again shows that an international border is no defense for those who defraud our senior citizens,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Regardless of where the criminals may be located, we will work together with our domestic and international law enforcement partners to bring them to the United States to hold them accountable for their crimes. In particular, we thank the Jamaican authorities for their cooperation and assistance in our continuing efforts to stamp out these long-running lottery schemes that target older Americans.”
“Scammers in foreign countries preying on elderly victims in the United States are not immune from prosecution in the United States,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This case demonstrates that we will bring those responsible to justice, wherever they may seek to hide.”
Barrett was indicted by a federal grand jury in Fort Lauderdale on Aug. 9, 2012, and was arrested in Jamaica in January based on the United States’ request that he be extradited. On Feb. 12, Barrett was the first Jamaican to be extradited to the United States based on charges that he committed fraud as part of an international lottery scheme.
As part of his guilty plea, Barrett acknowledged that had the case gone to trial, the United States would have proved beyond a reasonable doubt that from 2008 through 2012, Barrett was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. Barrett also admitted that the United States would have proved that he knew the claims of lottery winnings were completely fabricated and that he and his co-conspirators kept the victims’ money for their own benefit without paying any lottery winnings. Barrett also admitted that the United States would have proved that in an effort to convince the victims that the lottery winnings were real, the conspirators sent the victims communications discussing their purported lottery winnings, which falsely claimed to be from a genuine sweepstakes company and from federal agencies including the Internal Revenue Service and the Federal Reserve. In fact, these communications were not from a genuine sweepstakes company or from agencies of the United States.
At his June 19 sentencing, Barrett faces a statutory maximum sentence of 30 years in prison and mandatory restitution. Barrett’s co-defendant, Oneike Barnett, 29, pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. On April 29, 2014, U.S. District Court Judge William J. Zloch sentenced Barnett to serve 60 months in prison and five years of supervised release, and to pay $94,456 in restitution for his role in this case.
U.S. Attorney Ferrer and Acting Assistant Attorney General Mizer commended the investigative efforts of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani of the Southern District of Florida and Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Jury Finds Colorado Man Guilty of Kidnapping a Toddler and Producing Child PornographyRead the Press Release
WASHINGTON – After a four-day jury trial, a Colorado man was convicted by a federal jury of kidnapping and producing child pornography involving two toddlers, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Benjamin B. Wagner announced.
Shawn McCormack, 31, of Colorado Springs, Colorado, was found guilty of four counts of sexual exploitation of a child and two counts of kidnapping.
US Attorney Wagner stated, “Determined, skillful and cooperative investigative efforts by multiple agencies across the continent led law enforcement to this defendant’s door. We are gratified by today’s verdict, which we hope will provide a measure of justice to the victims, and serve as a warning to those who would seek to harm the most vulnerable among us.”
“Child pornography, when it’s released on the Internet, lives on forever,” said Michael Toms, resident agent in charge for HSI Bakersfield. “It haunts the innocent children whose abuse is depicted in the images, and brings unspeakable pain to their parents and families, knowing that untold strangers are exploiting their worst experiences for their own perverse pleasure. HSI will continue to work closely with its law enforcement partners across the country and around the globe to ensure that those who sexually exploit our children are brought to justice.”
According to evidence presented at trial, McCormack, feigning to be a friend, traveled to a couple’s residence in Bakersfield, California, and stayed as an overnight guest on multiple occasions. During several of the overnight stays, in the middle of the night, McCormack snuck the couple’s toddler out of the house and recorded his sexual abuse of the toddler in a nearby motel, outdoors and in his truck. McCormack then returned the toddler to the house before the parents awoke. The evidence demonstrated that McCormack distributed the images and videos of his abuse to others online, including an undercover officer with the Toronto Police Services.
According to the evidence presented at trial, Homeland Security Investigations agents in Boston found images and recordings distributed by McCormack on a separate defendant’s computer in Massachusetts. The agents were able to identify the date, time and hotel room where one of the videos had been produced. When agents visited that hotel, they learned that McCormack had rented that hotel room on the night when the recording was created. During the investigation, agents uncovered evidence that McCormack had recorded his abuse of both of the couple’s children.
McCormack is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on July 27, 2015. McCormack faces a possible sentence of 15 to 30 years in prison for each count of production of child pornography, and 20 years to life in prison for each count of kidnapping. The sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) field offices in Bakersfield, California; Colorado Springs, Colorado; and Boston, Massachusetts, the Bakersfield Police Department, the Colorado Springs Police Department, and the Toronto Police Services. Trial Attorney Maureen C. Cain of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorneys Patrick R. Delahunty and Megan A.S. Richards of the Eastern District of California prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Docket #: 1:11-cr-324-AWI
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.- The results of the April 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.Roger Dean Armstrong Jr. and Roger Dean Armstrong Sr. Assault with a Dangerous Weapon in Indian Country. Armstrong Jr., 34, and Armstrong Sr., 60, both from Wyandotte, Oklahoma, are charged with assaulting two people with a dangerous weapon. If convicted, the statutory maximum penalty is ten years in prison and a fine of $250,000. The Bureau of Indian Affairs is the investigating agency.
Jaime Ayvar-Martinez. Alien in the United States After Deportation. Ayvar-Martinez, 24, was arrested and is charged with having returned to the United States unlawfully after being deported in June 2013 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Timothy Patrick Hoyt. Interference with Commerce by Robbery. Hoyt, 44, of Bella Vista, Arkansas, is charged with robbing a restaurant employee by force. If convicted, the statutory maximum penalty is 20 years in prison and $250,000 fine. The Federal Bureau of Investigation is handling the case.
Billy Joe Laverty and Allen Wayne Smith. Carjacking, Interference with Commerce by Robbery, and Use, Carry, Brandish, and Discharge a Firearm During and in Relation to a Crime of Violence. Laverty, 38, of Tulsa, and Smith, 48, are charged with carjacking and robbing a restaurant employee by force on January 17 and 19, 2015. In addition, the defendants are charged with firing a pistol during the robbery on January 19, 2015. If convicted, the carjacking charge carries a statutory maximum penalty of 15 years in prison and a $250,000 fine; interference with commerce by robbery carries a statutory maximum penalty of 20 years in prison and a $250,000 fine; and discharging a firearm during a crime of violence carries a statutory maximum penalty of 10 years in prison and a $250,000 fine. The Federal Bureau of Investigation is handling the case.
Carlos Peralta-Urquiza. Alien in the United States After Deportation. Peralta-Urquiza, 39, was arrested and is charged with having returned to the United States unlawfully after being deported in April 2012 near Eagles Pass, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Patty Jean Phelps. Assaulting a Federal Officer and Assault within the Special Maritime and Territorial Jurisdiction of the United States by Striking, Beating, and Wounding. Phelps, 44, of Bella Vista, Arkansas, is charged with using a vehicle to assault a Department of Veterans Affairs Officer while engaged in official duty at the Ernest Childers Veterans Affairs Outpatient Clinic on March 3, 2015. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The Federal Bureau of Investigation is handling the case.
Anita LaDon Rendel. Embezzle, Steal, Convert and Misapply Monies in Excess of $1,000 From an Indian Tribal Organization. Rendel, 51, of Miami, Oklahoma, is charged with embezzling more than $1,000 from the Eastern Shawnee Tribe. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine. The Department of Housing and Urban Development, Office of the Inspector General is investigating the case.
Eric Grant Roberts. Malicious Mischief in Indian Country. Roberts, 44, of Tulsa, is charged with maliciously destroying personal property belonging to an Indian person. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine. The Federal Bureau of Investigation and the Cherokee Nation Marshal Service are the investigating agencies.
Marcus Dupree Smith and Kamau Jahi Williams. Drug Conspiracy and Possession of Cocaine Base with Intent to Distribute. Smith, 32, and Williams, 36, both of Tulsa, are charged with conspiring to possess with intent to distribute 28 grams or more of crack cocaine on January 17, 2015. Upon conviction, the defendants face a joint and several money judgment representing proceeds obtained as a result of the drug conspiracy and possession of crack cocaine with intent to distribute offense. If convicted, the statutory minimum penalty is five years and the maximum penalty is 40 years in prison and a $5,000,000 fine. The Federal Bureau of Investigation and the Tulsa Police Department are the investigating agencies.
Jose Vera-Diaz. Alien in the United States After Deportation. Vera-Diaz, 50, was arrested and is charged with having returned to the United States unlawfully after being deported in January 2014 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Laretta Carol Wilcox. Theft of Government Property. Wilcox, 47, of Tulsa, is charged with stealing more than $1,000 from the Social Security Administration from July to November 2014. Upon conviction, the defendant shall forfeit property and also faces a money judgment representing proceeds of her theft of government property offense. If convicted, the statutory maximum penalty is ten years in prison and a $250,000 fine. The Social Security Administration, Office of the Inspector General is investigating the case.
Federal Government Seizing Drug Properties in Rutland, VtRead the Press Release
The United States Attorney’s Office announced today that it had filed a forfeiture lawsuit against the real property at 114, 116 and 117 Park Avenue in Rutland Vermont. The suit was brought pursuant to 21 U.S.C. § 881(a)(7), which provides that property which is used to commit or to facilitate the commission of felony drug offenses can be forfeited to the Government. Each property contains a house containing at least two apartments. The houses appear to have been built as single family homes but have been split up over time.
The complaint and the accompanying affidavit of FBI agent Christopher Destito show that there were multiple heroin and crack cocaine dealers living in and using the apartments in the Park Avenue buildings starting at least in 2011 and 2012 and continuing into 2015. The documents also show that law enforcement searched several of the apartments in 2013. One of the properties was searched twice. The documents also show that law enforcement made six controlled buys from dealers in the apartments and have arrested several persons who had been living there. At least four former tenants are now under indictment or have been convicted already in federal court and others have been charged in state court. These include Eric Dixon, now serving 87 months in federal prison; Earnest Murray, now serving 60 months in federal prison; Andrew Harris, now serving 60 months in federal prison; and Terrance Chenault, now serving 87 months in federal prison.
The court documents show that a drug dealer paid multiple bags of heroin as a security deposit to a former property manager for 114 Park Avenue when he moved in. The documents further show that the current property manager has a lengthy criminal history and that her daughters lived in several of the apartments with known drug dealers.
The affidavit of probable cause states that the property is owned by a New York corporation whose principals are Bernard and Ruth Jeifa, whose principal place of business is in the Town of Franklin Square, on Long Island, in New York State. The documents show that Bernard Jeifa regularly collected rent from tenants and met tenants with his property manager. They also show that he paid to repair doors to an apartment after law enforcement had to knock them down to execute a search warrant but said nothing to the tenant. The court filings further show that when a non-dealing tenant complained of the drug dealing by other tenants, Jeifa instructed her to call the police or call the property manager. The documents also show that local residents sent a letter to Bernard Jeifa to inform him of the drug dealing but that the drug dealing continued.
The forfeiture proceedings against the Park Avenue properties plus the recent forfeiture action against 24 Cottage Street, as well as a series of criminal prosecutions, are part of an on-going effort by the U.S. Attorney’s Office in conjunction with federal, state and local law enforcement agencies to address drug activity in Rutland. During the past year, the U.S. Attorney’s Office has charged approximately thirty individuals federally who have facilitated the drug trade in Rutland, Vermont.
The charged individuals have included out-of-state dealers responsible for bringing significant quantities of heroin and crack cocaine to Rutland; local residents who provided housing, transportation, and local distribution networks to these out-of-state dealers; and couriers who moved the drugs between other states (most frequently New York) and Vermont.
The United States Attorney’s Office’s efforts to combat drug trafficking in Rutland have been supported by the work of the Vermont State Police Drug Task Force, the Drug Enforcement Agency, the Federal Bureau of Investigation, and the Rutland Police Department. The United States Marshals Service will play a key role in the forfeiture of the Park Avenue properties. AUSA James Gelber is responsible for the property forfeitures.
Fairview Heights Man Sentenced to over Ten Years in Prison for Robbery of Regions Bank in Granite CityRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that George E. Haberhehl, Jr., 51, of Fairview Heights, Illinois, was sentenced in federal district court in East St. Louis, on April 9, 2015, for the crime of Bank Robbery, to 125 months in federal prison, to be followed by 3 years of supervised release, a $100 special assessment, and restitution of $3400. On August 9, 2013, Habermehl approached a teller in Regions Bank, Granite City, giving her a note that read: "I want 35 $100 bills in a bank envelope. Don’t hit the alarm or give me bait money or I will shoot." In response, the teller gave Habermehl $3400.
On August 20, 2013, Habermehl was arrested in a bar in St. Louis County, Missouri, after robbing the Pulaski Bank in Richmond Heights, Missouri, of $2897. Habermehl admitted to robbing both banks. He was sentenced to 10 years in prison in St. Louis County for the Pulaski Bank robbery on June 23, 2014.
The judge in the federal case imposed the 125-month sentence to run 65 months concurrent with the St. Louis County sentence, and 60 months consecutive to the St. Louis County sentence.
The case was investigated by members of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Stephen B. Clark.
Final Defendant Sentenced in “Operation New Moon Rising”Read the Press Release
Jackson, Miss - Marzett Jordan, 45, of Philadelphia, Mississippi, was sentenced on April 2, 2015 by U.S. District Judge Henry T. Wingate to six months in federal prison for making false statements, announced U.S. Attorney Gregory K. Davis and Jerome R. McDuffie, Acting Special Agent in Charge of IRS Criminal Investigation. The government and Jordan also agreed to a substitute of assets settlement of $130,000 which was paid by Jordan to the U.S. Department of Treasury.
Jordan pled guilty to the charge on October 31, 2005. He was the final defendant to be sentenced under the Organized Crime and Drug Enforcement Task Force ("OCDETF") Operation "New Moon Rising", an extensive investigation into illegal narcotics distribution and money laundering in the Philadelphia, MS area. The Operation resulted in the indictment of Jordan and others on various counts of conspiracy to distribute cocaine base, laundering drug proceeds and making false statements on mortgage applications.
Other defendants in this case included Spencer Jordan, who pled guilty to conspiracy to distribute cocaine and conspiracy to launder monetary instruments. He was sentenced in December, 2009 to 135 months in prison followed by five years of supervised release. Annie Mae Jordan pled guilty to a Criminal Information charging her with misprision of a felony. She was sentenced on January 25, 2006 to 8 months in prison followed by one year of supervised release.
Jerome R. McDuffie, Acting Special Agent in Charge for IRS – Criminal Investigation, stated, "Spencer Jordan conspired with multiple family members including his brother, Marzett Jordan, to launder drug proceeds through real estate purchases. The money laundering and forfeiture aspects of this case were particularly intricate, and included the dissection of financial transactions related to properties purchased with the drug proceeds of Spencer Jordan. The properties were purchased in the name of Marzett Jordan, who is a former bank employee. As a result of his participation in the money laundering conspiracy, Marzett Jordan agreed to forfeit $130,000.00 in currency. Taking apart drug and money laundering enterprises such as these are
often the culmination of many investigative efforts and resources. The special agents of IRS – Criminal Investigation are especially excited to utilize our investigative skills to assist in these types of cases. The length of time it often takes to settle the money laundering aspects of the case in court is well worth it compared to the benefits received by the community. Jordan and his cartel represented a large threat to the Philadelphia, MS area. Former Philadelphia Police Chief, David Edwards, estimated that, during the period related to the investigation, Spencer Jordan and his cartel were responsible for trafficking as much as 60 to 70 percent of the drugs entering the local community. It is a great victory for law enforcement that they have all been held accountable for their actions."
This OCDETF operation was led by the DEA and Mississippi Bureau of Narcotics with assistance from IRS Criminal Investigation and the Philadelphia Police Department. It was prosecuted by Assistant U.S. Attorney Erin Chalk.
FBI and Ross Township Police Seek the Public’s Assistance in Identifying Ross Township Bank Robbers and Offers up to $10,000 Reward for Information That Leads to Their ArrestRead the Press Release
The Federal Bureau of Investigation (FBI) Pittsburgh Division and the Ross Township Police are seeking the public’s assistance in identifying the two (2) unknown males responsible for robbing the First Niagara Bank, 6203 Babcock Boulevard, Ross Township, PA, at approximately 9:15 a.m. on Friday, April 10, 2015. They were seen leaving in a gray, newer model 4-door Toyota Corolla.
Robber #1 is described as follows:
- Sex: Male
- Race: White
- Height: Approximately 5'8-5'9" tall
- Build: Medium Build
- Male #1 was last seen wearing a dark blue Pitt sweatshirt and dark blue sweatpants with gold writing vertices down one leg.
Robber #2 is described as follows:
- Sex: Male
- Race: White
- Height: Approximately 5'8-5'9 tall
- Build: Larger Build
- Male #2 was last seen wearing a black hooded sweatshirt, black ski mask and hat.
Bank surveillance photographs from First Niagara Bank on Friday, April 10, 2015:
Link to Internet Wanted posterTHESE TWO (2) MALES SHOULD BE CONSIDERED ARMED AND DANGEROUS
Anyone with information regarding this robbery should contact the FBI Pittsburgh Field Office, 24 hours a day, at telephone number (412) 432-4000 or the Ross Township Police at 412-931-9070. Tipsters may remain anonymous
District Man Sentenced to More Than Six Years in Prison for Series of Crimes During 30-Day PeriodRead the Press Release
WASHINGTON – Desmond Chapman, 35, of Washington, D.C., has been sentenced to a prison term of six years and one month for a series of crimes, including a robbery, two thefts, and an assault on a police officer, that took place over a 30-day period last year, Acting U.S. Attorney Vincent H. Cohen, Jr. announced today.
Chapman pled guilty in February 2015, in the Superior Court of the District of Columbia, to one count of attempted robbery; one count of second-degree theft with a felony enhancement, and one count of felony assault on a police officer. He was sentenced on April 9, 2015, by the Honorable Juliet J. McKenna. Upon completion of his prison term, Chapman will be placed on three years of supervised release.
According to the government’s evidence, the series of crimes began with a robbery incident on May 3, 2014. That day, at approximately 6:30 a.m., the victim got out of a taxicab near First and Kennedy Streets NW. As the victim was walking, Chapman and another individual, who remains unidentified, attacked him. The victim was blindsided, hit on the side of the face, and had a T-shirt placed over his head. As the attack continued, the victim was struck several more times in the face and body, while the T-shirt remained over his head. The victim eventually fell to the ground. The victim later learned that his wallet containing $200 and credit cards were missing from his back pants pocket.
Less than two weeks later, on May 15, 2014, at approximately 6:55 p.m., Chapman entered a liquor store in the 5500 block of South Dakota Avenue NE, grabbed two half-gallon bottles of gin, and fled without paying. On May 23, 2014, at approximately 11:45 a.m., Chapman returned to the liquor store and once again snatched two half-gallon bottles of gin, fleeing without paying. Chapman was later identified as the thief from store surveillance footage. He has at least two prior theft convictions; therefore, he qualified for the felony enhancement at sentencing.
Finally, on May 31, 2014, at approximately 8:15 a.m., an officer with the Metropolitan Police Department (MPD) saw Chapman at the intersection of First and Kennedy Streets NW. The officer knew that Chapman had several outstanding warrants. Chapman saw the officer and walked away. She broadcast a look-out for him, and caught up with him after a brief chase that ended in the 5500 block of Kansas Avenue NW. As the officer attempted to apprehend Chapman, he physically resisted, causing her to fall to the ground and hit her head. Then, as she and another officer struggled with Chapman, he bit her on the left arm and left leg. Additional officers arrived to aid with Chapman’s apprehension. The officer, who also suffered injuries to her neck, back, and shoulders, was taken to a hospital for treatment.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Ali D. Kargbo, of the Felony Major Crimes Trial Section, who investigated and prosecuted the matter; former Assistant U.S. Attorney Shane Waller; and Paralegal Specialist Debra McPherson.
District Man Sentenced to 38 Years to Life in Prison for 2000 Slaying of Government WitnessRead the Press Release
WASHINGTON – Anthony Gray, 37, of Washington, D.C., was sentenced today to a prison term of 38 years to life for the July 2000 murder of a government witness, announced Acting U.S. Attorney Vincent H. Cohen, Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Robert D. MacLean, Chief of the United States Park Police.
Gray was found guilty on Dec. 2, 2014, of first-degree premeditated murder while armed, kidnapping, and felony murder while armed, as well as the aggravating circumstances that the murder was committed during the course of a kidnapping and was committed because the victim was a government witness. The jury verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Rhonda Reid Winston.
In sentencing the defendant, the judge declared: “The court system relies on the community to come forward. When one does that, the court takes it especially seriously if that person is murdered because of the citizen’s willingness to do what we expect of all citizens.”
According to the government’s evidence, Gray was part of a violent crew that operated in the Alabama Avenue SE area, known as “Simple City,” in the mid to late 1990s-2000s. The crew focused on selling drugs, committing violent crimes, and intimidating witnesses. Gray played an active role in the crew and committed a number of crimes on its behalf.
Specifically, in 1999, a murder was committed by two crew members in the area of Texas Avenue SE. Robert McManus, 20, was a reluctant witness to this murder. On July 5, 2000, as trial was approaching for the two crew members, Anthony Gray and another crew member kidnapped Mr. McManus from his bicycle for the purpose of preventing him from testifying at the trial. After kidnapping Mr. McManus, Gray and the other crew member drove him to the 4800 block of E Street SE, marched Mr. McManus into the woods, and shot him one time in the head. The following day, Mr. McManus’s body was recovered in a wooded area, executed.
After the murder of Mr. McManus, Gray bragged to multiple witnesses that he killed him because he was “hot.” According to Gray, Mr. McManus was “hot and he had to go.”
“Anthony Gray will spend decades in prison for executing a young man who had the courage to tell the truth about another murder committed by Gray’s crew,” said Acting U.S. Attorney Cohen. “This prison sentence should send a message to criminals who even think about harming a witness. The consequences of choosing to obstruct justice with violence will be harsh.”
In announcing the sentence, Acting U.S. Attorney Cohen, Chief Lanier, and Chief MacLean commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Park Police. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Amanda Haines, who indicted the matter; former Lead Paralegal Specialist Phil Aronson; Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialists Meridith McGarrity, Fern Rhedrick, and Vanessa Trent-Valentine; Intelligence Analyst Zachary McMenamin; Supervisory Witness Security Specialist Michael Hailey; Witness Security Specialists Debra Cannon and Wanda Queen, and Information Technology Specialist Leif Hickling.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Laura R. Bach and Shana L. Fulton, who tried the case.
Designer of Fraudulent Tax Promotion Product Sentenced to PrisonRead the Press Release
A Chino, California, businessman was sentenced to serve more than four years in prison yesterday in the U.S. District Court in Las Vegas for his role in a conspiracy to promote and sell fraudulent tax products, including a product called Tax Break 2000, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Daniel William Porter pleaded guilty to one count of conspiracy to defraud the United States. U.S. District Judge Miranda Du sentenced Porter to serve 55 months in prison and three years of supervised release following his prison sentence. As part of his plea agreement, Porter agreed to cooperate with the government and assist with its ongoing investigation into entities and individuals involved in the sale and promotion of Tax Break 2000.
“Today’s sentence sends a clear and powerful message to those individuals who, like Mr. Porter, seek to evade and help others evade their federal tax obligations, that they will be prosecuted, convicted and sentenced to substantial terms of incarceration,” said Acting Assistant Attorney General Ciraolo. “No individual is above the law, and the Tax Division, working with its partners at IRS-Criminal Investigation and the Offices of the U.S. Attorneys, will hold accountable those who engage in criminal conduct at the expense of honest taxpayers and the U.S. Treasury.”
According to court documents and court statements, Porter conceived and designed Tax Break 2000, which purported to be an online shopping website. By at least November 2000 and continuing through at least July 2002, Porter conspired with others to promote and sell Tax Break 2000 to customers throughout the United States. Customers were falsely and fraudulently told that purchasing Tax Break 2000 would allow them to claim legitimate income credits and deductions under the Americans with Disabilities Act (ADA) by modifying the website each customer was provided to make it accessible to the disabled. The National Audit Defense Network (NADN) charged $10,475 for the product to maximize the fraudulent income tax credits and deductions that customers would claim on their federal income tax returns. However, the customers only paid between $2,000 and $2,695 for the product. The remainder of the cost was covered by a promissory note that customers were not expected to repay.
Porter sold Tax Break 2000 directly through Oryan Management and by contracting with other individuals and entities, including Donald Hicks, a tax return preparer in Gladstone, Missouri, and NADN in Las Vegas. Through Hicks and NADN, Tax Break 2000 was sold to thousands of customers. Alan Rodrigues, NADN’s former general manager and executive vice president, Weston Coolidge, the former president of NADN, and Joseph Prokop, the national director of marketing for Oryan Management and a former NFL punter, were convicted at trial in the District of Nevada for their roles in the sale and promotion of Tax Break 2000 in a separate criminal case.
On March 10, at the sentencing of Rodrigues, Coolidge and Prokop, Judge Du found that the intended tax loss to the Internal Revenue Service (IRS) associated with NADN’s sale of Tax Break 2000 was more than $60 million and that the fraud loss to the customers who purchased Tax Break 2000 was more than $36 million. Rodrigues was sentenced to serve 72 months in prison, Coolidge was sentenced to serve 70 months in prison, and Prokop was sentenced to serve 18 months in prison to be followed by 30 months home confinement. All three defendants were ordered to pay restitution of more than $35 million to customers of NADN who purchased the fraudulent tax product. Donald Hicks, who promoted the fraudulent tax products in Missouri, pleaded guilty in a separate criminal case in the Western District of Missouri.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and former Trial Attorneys Timothy J. Stockwell, Katherine L. Wong and Mark L. Williams, and Paralegal Larry Garland of the Tax Division, who prosecuted the case. Ciraolo also thanked the U.S. Attorney’s Office in the District of Nevada in Las Vegas for their substantial assistance.
Cortez Woman Sentenced to Prison for Filing False Tax Returns Relating to Theft of FundsRead the Press Release
DENVER – Lisa Kay Balderrama, age 50, of Cortez, Colorado, was sentenced earlier this week by Chief U.S. District Court Judge Marcia S. Krieger to serve 12 months in federal prison for filing a false tax return, United States Attorney John Walsh and IRS Criminal Investigation Acting Special Agent in Charge Steven A. Osborne announced. Following her prison sentence, Balderrama was ordered to serve 1 year on supervised release. Balderrama was also ordered by Chief Judge Krieger to pay $64,477 in restitution to the IRS. The defendant was ordered to report to a Bureau of Prisons facility within 48 hours of designation. Balderrama waived her right to indictment, and thus was charged by Information on October 20, 2014. She pled guilty before Chief Judge Krieger on December 4, 2014.
According to information contained in the stipulated facts of the plea agreement as well as the Information, Lisa Balderrama began working for Empire Electric Association in Cortez, Colorado in December 2005 as a Customer Services Representative. At the end of October 2012, accounting employees for Empire noted that the manual check register was not reconciling with internal bookkeeping and that the two were off by over $200,000. These employees brought this to Balderrama's attention, questioning whether certain deposits had been made. Balderrama convinced the other employees that deposits had gone into the bank, that everything was okay, and that she would find the discrepancy.
In mid-December 2012, the defendant was again questioned about the discrepancy and about a $277,000 electronic transaction she had posted on October 22, 2012. The following Monday, Balderrama reported to work and confessed to her superiors that she had stolen approximately $280,000 from Empire Electric. The investigation revealed that from approximately 2009 through 2012, Balderrama stole money from customers who paid cash for their electric bills. Empire’s accountant conducted an investigation into their books and found that $277,035 in adjustments had been made to 184 accounts in order to cover the shortages due to Balderrama’s thefts.
Balderrama failed to report a combined total income of $277,035 on her tax returns in 2010, 2011, 2012 and 2013. The tax loss to the IRS which resulted from Balderrama's false statements totaled $64,477.
“As the defendant Balderrama learned in this case, regardless of the source of income, if you don’t pay taxes on it, you will be held criminally accountable,” said U.S. Attorney John Walsh. “With tax day approaching, this case serves as a reminder that we all report our taxable income, and pay any taxes due.”
“As we approach the end of tax filing season, this is a reminder that all taxpayers should file complete and accurate tax returns or they will be held accountable; all income regardless of the source is taxable,” said Steven A. Osborne, Acting Special Agent In Charge for IRS Criminal Investigation, Denver Field Office.
This case was investigated by Internal Revenue Service – Criminal Investigation and the Cortez City Police Department. Balderrama is being prosecuted by Assistant U.S. Attorney Dondi Osborne in the Colorado U.S. Attorney’s Durango Branch Office.
Convicted Felons Sentenced to Lengthy Prison Terms for Possessing Stolen FirearmsRead the Press Release
Waycross, GA – Benjamin Robert Taylor, 36, of Hortense, Georgia, was sentenced last week to 110 months in prison by Chief United States District Court Judge Lisa Godbey Wood after pleading guilty to possessing stolen firearms. Co-defendant Brian James Wilson, 27, of Brunswick, Georgia, was earlier sentenced to 120 months in prison by Judge Wood after pleading guilty to the same charge. Following their stays in prison, both Taylor and Wilson will be required to serve three years of supervised release.
According to evidence presented at the guilty plea and sentencing hearings, following a traffic stop, a search of the vehicle in which Taylor and Wilson were passengers led to the discovery and seizure of multiple stolen firearms, including a pistol, two semi-automatic rifles, and two shotguns. Further investigation revealed that all of the firearms seized during the traffic stop had been stolen in a burglary committed the day before along with multiple other firearms. Both Taylor and Wilson were multi-convicted felons at the time.
This case was jointly investigated by the ATF, the Brantley County Sheriff’s Office and the Glynn County Police Department. Assistant United States Attorney T. Shane Mayes prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Colorado Man Convicted of Kidnapping a Toddler and Producing Child PornographyRead the Press Release
A Colorado man was convicted by a federal jury of kidnapping a toddler and producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Benjamin B. Wagner of the Eastern District of California.
Shawn McCormack, 31, of Colorado Springs, Colorado, was found guilty following a four-day trial of four counts of sexual exploitation of a child and two counts of kidnapping. Senior U.S. District Judge Anthony W. Ishii of the Eastern District of California presided over the trial, and a sentencing hearing was scheduled for July 27, 2015.
According to evidence presented at trial, McCormack, feigning to be a friend, traveled to a couple’s residence in Bakersfield, California, and stayed as an overnight guest on multiple occasions. During several of the overnight stays, in the middle of the night, McCormack snuck the couple’s toddler out of the house and recorded his sexual abuse of the toddler in a nearby motel, outdoors and in his truck. McCormack then returned the toddler to the house before the parents awoke. The evidence demonstrated that McCormack distributed the images and videos of his abuse to others online, including an undercover officer with the Toronto Police Services.
According to the evidence presented at trial, Homeland Security Investigations agents in Boston found images and recordings distributed by McCormack on a separate defendant’s computer in Massachusetts. The agents were able to identify the date, time and hotel room where one of the videos had been produced. When agents visited that hotel, they learned that McCormack had rented that hotel room on the night when the recording was created. During the investigation, agents uncovered evidence that McCormack had recorded his abuse of both of the couple’s children.
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s Field Offices in Bakersfield, California, Colorado Springs, Colorado, and Boston, Massachusetts, the Bakersfield Police Department, the Colorado Springs Police Department, Toronto Police Services, and the FBI.
The case is being prosecuted by Trial Attorney Maureen C. Cain of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorneys Patrick R. Delahunty and Megan A.S. Richards of the Eastern District of California.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Christopher Blattner Pleads Guilty to Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Blattner, 35, of Albuquerque, N.M., pleaded guilty earlier today to violating the federal firearms laws. Under the terms of the plea agreement, Blattner will be sentenced to 30 years in federal prison to be followed by up to five years of supervised release. The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
U.S. Attorney Damon P. Martinez said that Blattner was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Noting that Blattner’s prior criminal history includes four prior narcotics trafficking convictions in the 2nd and 13th Judicial District Courts for the State of New Mexico, U.S. Attorney Martinez said, “Blattner is the precisely the type of offender targeted by this federal initiative. Our families, friends and neighbors are safer when career criminals like Blattner are removed from our communities.”
“The streets are safer and people can sleep a little easier knowing that there is one less armed drug dealer poisoning our neighborhoods,” said ATF Special Agent in Charge Thomas G. Atteberry. “ATF and the Albuquerque Police Department are committed to reducing violent crime and arresting those who seek to reduce the quality of life in our community. The sentence to be imposed on Christopher Blattner sends the strong message that we will not tolerate the criminal use of firearms.”
“Today’s guilty plea sends a clear message to habitual criminals that the Albuquerque Police Department is working closely with ATF and federal prosecutors to hold them accountable for their crimes in our community,” said APD Police Chief Gorden Eden, Jr. “This case is a great example of how the Department’s cooperative enforcement efforts with our federal partners enhance public safety in Albuquerque.”
Blattner was charged in Feb. 2013, with violating the federal narcotics and firearms laws in a five-count indictment. Counts 1 and 5 of the indictment charged Blattner with distributing methamphetamine in Bernalillo County, N.M., on Aug. 6, 2012 and Aug. 17, 2012, respectively. Count 2 charged Blattner with possessing a firearm during and in relation to a drug trafficking crime on Aug. 6, 2012. Counts 3 and 4 charged Blattner with being a felon in possession of firearms and ammunition on Aug. 6, 2012 and Aug. 17, 2012.
In Aug. 2014, a federal grand jury filed an eight-count superseding indictment in the case which added Blattner’s wife, Brittany Blattner, 27, as a co-defendant. The superseding indictment charged Chris Blattner with two counts of methamphetamine distribution; two counts of using and carrying a firearm in relation to a drug trafficking crime; and three counts of being a felon in possession of firearms and ammunition. It also charged Blattner and Brittany Blattner with one count of jointly distributing methamphetamine. According to the indictment, Blattner and his wife committed the crimes charged in Bernalillo County, N.M., in Aug. 2012.
During today’s proceedings, Blattner entered a guilty plea to Counts 2 and 5 of the superseding indictment, each of which charged him with possessing a firearm in furtherance of a drug trafficking crime. In his plea agreement, Blattner admitted possessing two Glock semi-automatic pistols on Aug. 6, 2012, in furtherance of a methamphetamine trafficking crime. Blattner also admitted possessing two different Glock semi-automatic pistols on Aug. 17, 2012, in furtherance of another methamphetamine trafficking crime. Blattner remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
On March 24, 2015, Brittany Blattner entered a guilty plea to a felony information charging her with simple possession of methamphetamine. In entering the guilty plea, she admitted possessing methamphetamine on Aug. 17, 2012, in Bernalillo County. Brittany Blattner remains on conditions of release pending her sentencing hearing, which has yet to be scheduled. At sentencing she faces a maximum of two years in federal prison followed by at least one year of supervised release.
This case was investigated by ATF’s Albuquerque office and APD, and is being prosecuted by Assistant U.S. Attorneys Louis E. Valencia and Presiliano A. Torrez.
Chittenden County Man Sentenced to Three Years of Supervised Release for FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on March 30, 2015, Jeffrey Devoid, 53, of Winooski, Vermont, was sentenced to three additional years of federal supervised release after Devoid admitted that he had violated the conditions of his federal supervised release by committing fraud. U.S. District Court Judge William K. Sessions III, sitting in Burlington, also ordered that Devoid pay his victims restitution in the amount of $13,600 and perform 120 hours of community service.
According to court records, in 2003 Devoid pled guilty to failure to pay child support–a federal misdemeanor–in the United States District Court for the Central District of California. For that offense, he was sentenced to 5 years of probation. In 2007, after he moved from California to Vermont, responsibility for supervising Devoid was transferred to the U.S. Probation Office in the District of Vermont.On August 28, 2008, a federal grand jury in Vermont returned an indictment charging Devoid with multiple counts of wire fraud. Devoid pled guilty and on November 2, 2009, Judge Sessions sentenced Devoid to 27 months in prison, followed by three years of federal supervised release. In that case, Devoid defrauded a number of New England printing companies where he had been employed as a salesman. Judge Sessions ordered him to pay his victims $207,838 in restitution. Judge Sessions also ordered that Devoid pay the remaining $53,113 he owed in unpaid child support.
According to court records, while serving the three-year term of supervised release imposed for his 2009 wire fraud conviction, Devoid continued to engage in fraudulent activity in Vermont. Beginning in approximately December of 2011, Devoid would meet women via internet dating websites, court them romantically, and falsely claim that he was a wealthy businessman who had sold a successful printing company in California. On the basis of this false information, Devoid induced his victims to lend him money and then failed to pay them back.
As Devoid admitted, this fraudulent conduct violated the terms of his federal supervised release, which prohibited him from violating federal, state and local law.
Acting United States Attorney Cowles commended the efforts of the Federal Bureau of Investigation on this matter. The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Devoid is represented by William R. Norful of the Norful Law Office in Winooski, Vermont.
Cahokia Man Sentenced for Firearm OffenseRead the Press Release
Marico T. Bratcher, 42, from Cahokia, Illinois, was sentenced on April 10, 2015, in federal court in East St. Louis, Illinois, for possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Bratcher was sentenced to 51 months in prison, three years of supervised release, fined $250 and ordered to pay $100 special assessment. Bratcher, who had previously pled guilty, admitted that a .9mm semi-auto pistol found in a bedroom closet by law enforcement officials conducting a surveillance of his residence, while looking for a fugitive in Cahokia, Illinois, on or around June 14, 2014, belonged to him.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF) and prosecuted by Special Assistant United States Attorney Jonathan S. Drucker.
Bucks County Man Sentenced for Child ExploitationRead the Press Release
PHILADELPHIA - Thomas Silber, 51, of Yardley, PA, was sentenced yesterday to 14 years in prison for knowingly receiving, and attempting to receive, visual depictions, that is, DVD movies, depicting child pornography. Between February 2007 and October 2010, Silber received 10 DVD movies, using the internet, which were shipped and transported in interstate and foreign commerce and contained materials that had been shipped and transported in interstate and foreign commerce. The producing of these visual depictions involved the use of minors engaging in sexually explicit conduct, and such visual depictions were of minors engaging in sexually explicit conduct. He pleaded guilty on December 18, 2014.
The DVDs that Silber purchased were produced by a company in Canada. After ordering the DVDs, Silber contacted the videos’ producer and arranged to meet with at least one of the children depicted, who lived in Ukraine. Silber then traveled to Ukraine on multiple occasions to engage in sexual activity with that child. Locally, Silber was employed as a school bus driver, Little League baseball umpire, and youth wrestling referee.
In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered five years of supervised release, a $5,000 fine, and a $1,000 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the U.S. Postal Inspection Service, the Pennsylvania Office of the Attorney General, and the Lower Makefield Township Police Department. It was prosecuted by Assistant United States Attorney Michelle Morgan.
Bristol Resident Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – Mathew S. Antignano, 31, of Bristol, faces a minimum of 5 years and up to 30 years in federal prison when he is sentenced in June following his guilty plea in federal court in Providence today to one count each of possessing child pornography and distributing child pornography, announced United States Attorney Peter F. Neronha, Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police, and Coventry Police Chief Bryan J. Volpe.
According to information presented to the court, Antignano was arrested in July 2014 following an investigation by the Rhode Island State Police Internet Crimes Against Children (ICAC) task force which determined that Antignano had downloaded and shared numerous files of child pornography.
According to information presented to the court, a Coventry Police Department detective assigned to the ICAC task force was investigating activity on a peer-to-peer file-sharing network when he detected an IP address used by Antignano sharing files of child pornography. Based on information developed by the Coventry Police detective and other members of the ICAC task force, a search warrant was issued and executed at Antignano’s residence. The search resulted in the seizure of a laptop computer, tablet and digital storage devices. A forensic examination of the electronic equipment seized resulted in the discovery of approximately 7,750 images and 180 videos depicting child pornography.
Antignano, who was arrested on July 27, 2014, and who is presently detained in federal custody, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 30, 2015. Distribution of child pornography is punishable by a statutory minimum sentence of 5 years imprisonment and a maximum sentence of 20 years imprisonment, a fine of up to $250,000, and a term of supervised release of between 5 years and up to life; possession of child pornography is punishable by a statutory penalty of up to 10 years imprisonment, a fine of up to $250,000 and a term of supervised release of between 5 years and up to life.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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[email protected]Boston Woman Sentenced for Social Security and Tax FraudRead the Press Release
BOSTON – A Boston woman was sentenced today for taking more than $220,000 in Social Security payments to which she was not entitled and failing to pay taxes on that income.
Frances Kenney Moseley, 66, was sentenced by U.S. District Judge Indira Talwani to three years of probation, including six months of home confinement, 1500 hours of community service, a fine of $5,000, and restitution of $470,188. In September 2014, Moseley pleaded guilty to theft of public money and tax evasion.
Following the death of Moseley’s father in 2003, and, unaware that he was deceased, the Social Security Administration continued to deposit his retirement benefits into his bank account. Moseley, who was not entitled to the benefits, regularly withdrew the deposited Social Security funds after her father’s death. Between 2003 and 2010, Moseley withdrew approximately $222,172 in Social Security funds paid to her deceased father. Moseley also failed to report the money as income on her federal income taxes.
During the same period of time, TIAA-CREF, a private investment/annuity company, unaware that Moseley’s father had died, continued to deposit annuity payments into the father’s account. Between 2003 and 2010, Moseley regularly withdrew the annuity payments, totaling approximately $248,016. Under the terms of the annuity, the payments were to have ceased upon the death of Moseley’s father.
This case is brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.
Since October 2013, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money.
In February 2015, Charles Gerbutavich, of Manchester, was sentenced to one year of probation, including three months of home confinement, and was ordered to pay a $3,000 fine and $161,587 in restitution to the Social Security Administration, which he paid in full in February. Gerbutavich pleaded guilty in connection with taking his deceased father’s Social Security benefits, which were directly deposited into a joint bank account after his death in 1993.
In January 2015, Graeme Griffith, of Andover, pleaded guilty to taking his deceased father’s Social Security benefits totaling $149,285, which were directly deposited into a joint bank account after the father’s death in 2003. Griffith is scheduled to be sentenced on April 16, 2015.
In October 2014, Mary Murphy, of Dorchester, was sentenced to 18 months of home confinement and 10 hours per week of community service, and ordered to pay a fine of $40,000 and $331,630 in restitution, which she paid in full in October. Murphy pleaded guilty in connection with taking her deceased mother’s Social Security and Civil Service retirement benefits, which were directly deposited into a joint bank account after her death in 1977.
Also in October 2014, Richard Oldham, of Old Orchard Beach, Maine, was sentenced to four months in prison, six months of home confinement, and ordered to pay $195,862 in restitution for endorsing Social Security checks in his deceased mother’s name following her death in 1993.
In August 2014, George Bergstrom, of Shrewsbury, was sentenced to one year of probation and ordered to pay $57,948 in restitution – which he paid in full in August – for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 2009.
In October 2013, John Flaherty, of Newburyport, was sentenced to 10 months in prison and was ordered to pay $168,830 in restitution for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 1993.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service, made the announcement today. The Moseley case is being prosecuted by Assistant U.S. Attorney David G. Tobin and Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Battle Creek Man Convicted of Possessing Unregistered and Stolen FirearmsRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today the conviction of Scott Lynn Dillard, 26, of Battle Creek, Michigan on two felony charges following a two-day jury trial in Grand Rapids, Michigan. A federal jury found Dillard guilty of possessing unregistered firearms, including an MP5 machinegun and two silencers, and possessing stolen firearms, including a .308 caliber sniper rifle.
The firearms were stolen from a Battle Creek Police Department vehicle on June 21, 2013, and then sold by Dillard and an associate. Law enforcement recovered the weapons the next day. Dillard now faces a maximum sentence of ten years’ imprisonment and a $250,000 fine for each of the two charges.
The U.S. Attorney’s Office for the Western District of Michigan was assisted in the investigation by the Battle Creek Police Department, Michigan State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.U.S. Attorney Patrick Miles praised federal, state, and local authorities for quickly locating and recovering the stolen firearms. “Prompt action in recovering these weapons prevented this theft from turning into a tragedy. Mr. Dillard will now be held accountable for his role in possessing these unregistered and stolen firearms.”
The sentencing hearing for Dillard is scheduled for July 24, 2015. This case was prosecuted by Assistant U.S. Attorneys Russell A. Kavalhuna and Clay M. West.
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Barre Man Sentenced to 76 Months in Federal Prison for Armed Convenience Store RobberyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on April 10, 2015, Lee Jay Manning, 28, of Barre, Vermont, was sentenced to 76 months in federal prison after his guilty plea to charges that he used a handgun to rob a Cumberland Farms convenience store in Barre on February 12, 2014. Chief U.S. District Court Judge Christina Reiss also ordered that Manning serve three years of supervised release following his prison term.
According to court records, Manning robbed the Cumberland Farms convenience store in Barre on the evening of February 12, 2014 with a loaded semi-automatic handgun. He was apprehended by law enforcement, in possession of the handgun, shortly after the robbery. No one was injured during the incident.
For his crimes, Manning faced a mandatory minimum term of 60 months in prison and a maximum term of life. The United States Sentencing Guidelines, which are advisory, recommended that Manning receive a prison term between 90 and 97 months. In determining that a 76-month sentence was appropriate in this case, Judge Reiss considered the seriousness of the offense, Manning’s history of substance abuse, and his recent efforts at rehabilitation, among other factors.
Acting United States Attorney Cowles commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Barre City Police Department, the Barre Town Police Department, the Berlin Police Department, and the Vermont State Police for their investigation into this matter.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Manning is represented by defense attorney Natasha Sen.
Aurora Man Found Guilty of Gun and Drug Charges Following Jury TrialRead the Press Release
DENVER – Michael Eugene Simpson, age 35, of Aurora, Colorado, was found guilty yesterday of gun and drug charges, following a three day jury trial before U.S. District Court Judge Philip A. Brimmer, United States Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Luke Franey announced. The jury deliberated for approximately five hours before reaching their verdicts.
Simpson was charged by Criminal Complaint on June 20, 2014. He was indicted by a federal grand jury on June 30, 2014. The U.S. Attorney’s Office obtained a Superseding Indictment on January 7, 2015. The jury trial began on April 6, 2015, with a verdict being rendered on April 9, 2015. The jury found the defendant guilty of one count possession with intent to distribute cocaine (with a penalty of not more than 20 years in prison, and up to a $1,000,000 fine per count); three counts of possession of a firearm and ammunition by a prohibited person (with a penalty of not more than 10 years in prison, and up to a $250,000 fine per count), one count of possession of an unregistered firearm (with a penalty of not more than 10 years in prison, and up to a $250,000 fine), and eight counts of possession of ammunition by a prohibited person (with a penalty of not more than 10 years in prison, and up to a $250,000 fine per count).
According to facts that came out trial, on June 19, 2014, at approximately 3:00 a.m., law enforcement special agents and officers executed a search warrant in Aurora, Colorado. The address was the residence of Michael Simpson. Aurora Police Department and ATF had previously received information that Simpson, a convicted felon, was in possession of numerous firearms and was participating in drug activity. That morning, upon approaching the residence, law enforcement officials found Simpson in a vehicle in the driveway. He did not comply with commands and instead turned the vehicle on and tried to flee. He attempted to back out the driveway but could not because a law enforcement vehicle was parked directly behind him. He proceeded to back up into the vehicle several times until law enforcement officers broke the driver side window and tased him.Agents and officers then conducted a lawful search of the residence, law enforcement officers found: (1) a loaded .40 Smith and Wesson firearm in a vehicle outside the house; (2) a loaded, Cobray 12 gauge Streetsweeper shotgun in the garage; (3) a loaded, .380 Bersa handgun in a safe from a downstairs closet; and, (4) 19.9 grams of cocaine in a plastic bag on the kitchen counter. In the same safe where the .380 Bersa handgun was found, law enforcement officers found over 100 rounds of ammunition, a digital scale, a beaker, and plastic bags used to distribute cocaine. Law enforcement officers found ammunition in two kitchen cabinets, on top of the refrigerator, and on a desk downstairs. A razor blade, digital scale, and plastic bags were also found in a kitchen cabinet.
Simpson, a member of the 83 Gangster Crips, has previous drug-related felony convictions. His felony convictions prohibit him from legally possessing firearms or ammunition.
This case was investigated by the ATF and the Aurora Police Department.
The defendant is being prosecuted by Assistant U.S. Attorneys Jason St. Julien and Robert Brown.