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13 May 2015
U.S. Attorney's Office for the Western District of Louisiana remembers fallen law enforcement officers during national Police Week 2015Read the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKECHARLES/MONROE, La. – Communities across the United States are coming together during National Police Week - May 10th through May 15th - to honor and remember those law enforcement officers who made the ultimate sacrifice, as well as the family members, friends and fellow officers they left behind.
“National Police Week is a time of remembrance of fallen officers who gave their lives to protect ours,” stated U.S. Attorney Stephanie Finley. “Law enforcement officers risk their lives for all of us, and the men and women of the Western District salute and remember them. In our communities, their contributions are felt and deeply appreciated.”
This year, the names of 273 officers killed in the line of duty are being added to the National Law Enforcement Officers Memorial in Washington, D.C., during the 27th Annual 2015 Candlelight Vigil on the evening of May 13. These names include officers who were killed during 2014 and officers who died in previous years who have not been previously added to the Memorial.
The fallen officers of 2014 include two members of the law enforcement community in the Western District of Louisiana. They are:
- Deputy Sheriff Carlos Papillion of the St. Landry Parish Sheriff’s Office, who died January 28, 2014.
- Deputy Sheriff Allen Bares Jr. of the Vermilion Parish Sheriff’s Office, who died June 23, 2014.
In order to assist local public safety officers in the work that they do, the U.S. Attorney’s Office, Western District of Louisiana, offers safety and survival training throughout the year to increase awareness of the hazards they encounter on a daily basis. The course curriculum and sessions are overseen by the Western District’s Law Enforcement Community Coordinator, Michael Campbell, a former Chief of Police for the City of Shreveport. The Western District of Louisiana consists of 42 of Louisiana’s 64 parishes, and the courses are open to federal, state, local, military and tribal offices.
“We have and will continue to offer officer safety and survival training to increase awareness of the hazards our public safety officers face on a daily basis,” Finley stated. “Our goal is for all public safety officers to return home to their families at the end of their shifts each and every day.”
The Department of Justice also offers numerous grants to law enforcement agencies such as a new program to help equip officers with body cameras. The Department of Justice announced this month a $20 million Body-Worn Camera (BWC) Pilot Partnership Program to respond to the immediate needs of local and tribal law enforcement organizations. The investment includes $17 million in competitive grants for the purchase of body-worn cameras, $2 million for training and technical assistance and $1 million for the development of evaluation tools to study best practices.
“This new program will enhance the services and protections local law enforcement agencies provide in our communities,” Finley stated. “The program can also build trust and keep officers and the public safe. I urge law enforcement agencies and local governments to look into implementing this program and accessing available grants to reduce associated costs.”
Body-worn_camera_fact_sheet_.pdf (842.05 KB)
Administered by the Bureau of Justice Assistance (BJA) under the Justice Department’s Office of Justice Programs (OJP), the BWC pilot program will provide support to help law enforcement agencies develop, implement and evaluate body-worn camera programs across the United States. For additional information about the BWC Pilot Implementation Program, visit this website: http://go.usa.gov/3BtMW.
U.S. Attorney's Office Settles Americans with Disabilities Act Case with Patriot National BankRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that the U.S. Attorney’s Office has reached an Americans with Disabilities Act (ADA) settlement with Stamford-based Patriot National Bank to ensure equal access for individuals with disabilities at all Patriot Bank locations.
The agreement resolves an ADA complaint filed by an individual who is deaf or hard of hearing who alleged that Patriot National Bank would not do business with her over the phone using a telecommunications relay service. Since the commencement of the investigation, Patriot National Bank has worked cooperatively to develop and amend its policies and practices to comply with the ADA and the Department of Justice’s implementing regulations.
“Individuals who have disabilities must not be denied equal access to the services offered by financial institutions simply because of their disability,” said U.S. Attorney Daly. “Patriot National Bank’s cooperation during this investigation has shown that it is committed to equal access and effective communication with its customers who have disabilities. Our office has received other complaints against other major financial institutions, alleging that they are also refusing to communicate with individuals with disabilities who use relay services to communicate by telephone. These refusals are discrimination, and we will be looking into these complaints.”
The agreement requires Patriot Bank to accept all relay calls in all of its branches and amend its policies, practices, and training to ensure the removal of barriers to access at its retail stores. This includes, but is not limited to:
- Providing appropriate auxiliary aids and services to persons with disabilities when necessary to ensure effective communication throughout its financial services and programs.
- Adopting and enforcing a policy on effective communication with individuals who are deaf, are hard of hearing or have speech disabilities, for all retail stores and financial services.
- Posting a summary of the policy in retail locations and distributing the policy to current and new employees and contractors.
- Accepting calls made through a relay service operator by customers who are deaf, are hard of hearing or have speech disabilities on an equivalent basis to calls from other customers. This includes eliminating special security provisions applied to relay calls and using the same caller verification procedures whether or not a customer uses a relay service.
- Ensuring that its ATMs and websites are accessible to individuals with disabilities.
- Providing staff training on the ADA and Patriot Bank’s obligations to provide effective communication to individuals with disabilities.
- Posting and maintaining in a conspicuous location in all banking stores a notice stating that individuals with disabilities have a right under the ADA to request a sign language or oral interpreter or other auxiliary aids or services.
Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public. Among other things, the ADA requires financial institutions, accountants, lawyers, doctors and other businesses to provide auxiliary aids and services that are necessary for effective communication. For individuals who are deaf or hard of hearing, auxiliary aids include qualified sign language or oral interpreters, use of relay services, computer-assisted real time transcription, and, for simple communications, the exchange of written notes.
Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
This matter was handled by Assistant U.S. Attorney Ndidi N. Moses with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Two Employees of Information Technology Companies Arrested for Harboring Foreign WorkersRead the Press Release
NEWARK, N.J. –Two employees of SCM Data Inc. and MMC Systems Inc. were arrested today for their alleged roles in a scheme that fraudulently used the H1-B visa program to reduce skilled labor costs, U.S. Attorney Paul J. Fishman announced.
Hiral Patel, 32, and Shikha Mohta, 31, both of Jersey City, New Jersey, were each charged by complaint with one count of conspiracy to bring in and harbor aliens and to obstruct justice. They are scheduled to make their initial court appearances this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the complaint:
SCM Data and MMC Systems offered consultants to clients in need of IT support. Both companies recruited foreign nationals, often student visa holders or recent college graduates, and sponsored them for H-1B visas. The H1-B program allows businesses in the United States to temporarily employ foreign workers with specialized or technical expertise in a particular field, such as accounting, engineering or computer science. As part of the H-1B program, the Department of Homeland Security (DHS) and the Department of Labor (DOL) require employers to meet specific labor conditions to ensure that American workers are not adversely impacted, while the DOL’s Wage and Hour Division safeguards the treatment and compensation of H-1B workers. Congress sets a numerical cap for the admission of skilled workers into the United States.
Patel, Mohta and other conspirators recruited foreign workers with purported IT expertise who sought work in the United States. The conspirators then sponsored the foreign workers’ H1-B visas with the stated purpose of working for SCM Data and MMC Systems’ clients throughout the United States. When submitting the visa paperwork to the DHS, the conspirators falsely represented that the foreign workers had full-time positions and were paid an annual salary, as required to secure the H-1B visas. Contrary to these representations and in violation of the H-1B program, Patel, Mohta and others paid the foreign workers only when they were placed at a third-party client who entered into a contract with SCM Data or MMC Systems.
In some instances, Patel, Mohta and others generated false payroll records to create the appearance that the foreign workers were paid full-time wages. On multiple occasions the conspirators required workers to pay SCM Data or MMC Systems their gross wages in cash. In exchange, SCM Data or MMC Systems would subtract taxes and fees and issue payroll checks to the foreign workers in a smaller amount. The conspirators then encouraged the foreign workers to submit the bogus payroll checks to the DHS as proof that the workers were engaged in full-time work despite the fact that they were not working for SCM Data and MMC Systems.
This scheme provided Patel, Mohta and others with a labor pool of inexpensive, skilled foreign workers who could be used on an “as needed” basis. The scheme was profitable because it required minimal overhead, and SCM Data and MMC Systems could charge significant hourly rates for the foreign workers’ services. The conspirators earned a substantial profit margin when a foreign worker was assigned to a project and incurred few costs when a foreign worker was without billable work.
The conspiracy charge with which Patel and Mohta are charged carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Fishman praised special agents of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly, and the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Anthony Moscato and Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
patel_hiral_and_mohta_shikha_complaint.pdf (1.18 MB)
Tioga County Man Pleads Guilty to Environmental CrimeRead the Press Release
SYRACUSE, NEW YORK – On May 12, 2015, BRIAN DAVIS (46), of Owego, New York, pled guilty to one felony count of treating, storing, and disposing of hazardous waste without a permit, in violation of the Resource Conservation and Recovery Act, announces United States Attorney Richard S. Hartunian and Vernesa D. Jones-Allen, Special Agent in Charge, New York Area Office, Criminal Investigation Division, U.S. Environmental Protection Agency ("EPA").
In June 2013, DAVIS, the owner of Large Car LLC, a company in Owego that installs and removes old industrial plating equipment for re-use or recycling, agreed to remove various hazardous chemicals, including arsenic, chromium, lead, and selenium, from a bankrupt waste generator facility in New Hampshire. DAVIS did not have a permit or environmental license to remove these chemicals, but he nevertheless transported them to the Large Car LLC facility in Owego, where he treated, stored, and disposed of them over the course of nearly a year. Specifically, DAVIS stored the hazardous waste without labeling it, properly isolating incompatible materials, or protecting it from the elements. DAVIS also treated and disposed of much of this waste by igniting and evaporating it, mixing it with other materials, and shipping it offsite without manifesting it.
DAVIS, who will be sentenced in Binghamton on September 25, 2015, by Senior United States District Judge Thomas J. McAvoy, faces up to 5 years in prison and a fine of up to $15 million. DAVIS will also be responsible to pay any charges associated with the cleanup and removal of the remaining hazardous waste material.
This case was investigated by the EPA Criminal Investigation Division and by criminal investigators with the New York State Department of Environmental Conservation, and it is being prosecuted by Assistant United States Attorney Michael F. Perry.
For additional information, please contact Executive Assistant U.S. Attorney John G. Duncan at 315-448-0672.
Three More Indicted in Credit Card Fraud and Cigarette Trafficking ConspiracyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced the indictment of ALPHA OUMAR DIALLO, 24, of Raleigh, MAMADOU LAMARANA BAH, also known as “Lanzo”, 34, of Bronx, NY, and MAMADOU JALLOW, also known as “Mike”, 32, of Raleigh. DIALLO, BAH, and JALLOW were each charged in indictments alleging Conspiracy to Commit Access Device Fraud, Access Device Fraud, and Aggravated Identity Theft. DIALLO also faces the charge of Felon in Possession of a Firearm.
The indictments generally allege that DIALLO, BAH, and JALLOW, were engaged in a schemes to acquire, among other things, large quantities of cigarettes in North Carolina and elsewhere using counterfeit gift and debit cards. The cards utilized by the conspirators were counterfeit because the data encoded in the magnetic strip of the cards had been altered to contain credit and debit card numbers that were not encoded upon them at the time they were manufactured. The indictments further alleged that conspirators acquired stolen credit and debit card data from sources on the internet, and received the stolen data in the form of internet email accounts to which they had access. It is alleged that the conspirators used the stolen credit and debit card data to fraudulently re-encode cards for later use to purchase cigarettes and other items.
After acquiring several counterfeit cards, the indictments allege that the conspirators used the cards, and caused the cards to be used, to purchase numerous cartons of cigarettes. The conspirators would generally travel from one store to another in a vehicle during a single trip to acquire a large volume of cigarettes. Other conspirators would then transport the cigarettes to other states to be resold at a profit.
If convicted, the maximum punishment for Conspiracy to Commit Access Device Fraud and Access Device Fraud is up to 20 years in prison. The punishment for Aggravated Identity Theft is a mandatory two years in prison consecutive to any other penalty imposed. The maximum punishment on the charge of Felon in Possession of a Firearm is up to 10 years in prison.
Anyone with information on the whereabouts of ALPHA OUMAR DIALLO is asked to please contact the United States Secret Service at (919) 855-1052.
An indictment is an allegation of a crime. All defendants are presumed under the law to be innocent until proven guilty.
The investigation of this case is being conducted by the United States Secret Service. Assistant United States Attorney William M. Gilmore is the assigned prosecutor on the case from the Economic Crimes Division of the United States Attorney's Office.
Three El Paso Men Sentenced to Federal Prison for the Distribution of CocaineRead the Press Release
In El Paso today, 35-year-old Isaac Hernandez, (aka “ICE”), the leader of an El Paso-based cocaine trafficking organization, was sentenced to eight years in federal prison announced Acting United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration Special Agent in Charge Will Glaspy, El Paso Division; and, Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, United States District Judge Philip R. Martinez ordered that Hernandez pay a $10,000 fine and be placed on supervised release for five years after completing his prison term.
Hernandez is the third defendant to be sentenced to federal prison for his role in the drug trafficking scheme. Yesterday, May 12, 2015, 35-year-old Joel Moreno was sentenced to six years in federal prison followed by five years of supervised release and fined $5,000. On May 7, 2015, 34-year-old Carlos Escobedo was sentenced to two years in federal prison followed by two years of supervised release.
All of the defendants pleaded guilty to conspiracy to possess with intent to deliver cocaine. By pleading guilty, the defendants admitted to trafficking over 500 grams of cocaine in the Western District of Texas between January 2013 and July 2014. According to court records, these defendants conspired to distribute a total of approximately two kilograms of cocaine.
This joint investigation was conducted by the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI).
Statement by Attorney General Lynch on the Confirmation of Sally Quillian Yates as Deputy Attorney GeneralRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the confirmation of Sally Quillian Yates as Deputy Attorney General:
“I am pleased to congratulate Sally Yates on her confirmation as Deputy Attorney General – a vital position she has already held in an acting capacity and in which I am confident she will continue to excel. I thank the members of the United States Senate for their prompt action on her nomination.
“At every stage of her career, Sally has demonstrated her dedication to the rule of law, her devotion to the cause of justice and her commitment to all those whom the law protects and empowers. Her leadership and her skill have earned her the respect and the trust of law enforcement professionals at every level. And her exemplary work on a wide range of issues – from combating public corruption to prosecuting acts of terrorism – has proven that she is equal to any task.
“During the time we served together as U.S. Attorneys and through these first few weeks of my tenure as Attorney General, Sally has been an indispensable ally, an outstanding professional, and a judicious and expert advisor. I congratulate her once again on her confirmation, and I look forward to all that the Department of Justice will continue to achieve with the help of her exceptional leadership.”
Springfield Woman Sentenced for $200,000 Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman was sentenced in federal court today for a wire fraud scheme in which she made hundreds of fraudulent transactions and stole more than $200,000 from a couple who hired her to be their personal assistant.
Tessa A. Riley, 25, of Springfield, was sentenced by U.S. District Judge Beth Phillips to two years in federal prison without parole. The court also ordered Riley to pay $215,167 in restitution to her victims.
Riley was hired as a personal assistant by a husband and wife (identified as “R.E.” and “A.E.”) in February 2012 to make travel arrangements, run errands, respond to correspondence, call repairmen and enter personal finances on their Quicken computer budget program. They hired Riley because their professions – he is an engineering professor and she is a physician – required them to travel and work away from their home for extended periods of time. She was given permission to make small purchases and to make travel arrangements on a credit card.
On Dec. 10, 2014, Riley pleaded guilty to the wire fraud scheme that began about four months after she was hired. Riley admitted that she linked her credit card to her employers’ checking account, which allowed her to make online payments, credits and withdrawals from the checking account automatically when expenses were reported on her credit card. Between June 2012 and September 2013, Riley made 333 fraudulent transactions that withdrew $192,019 from that checking account.
Riley also admitted that she used her employers’ credit cards to make $29,144 in unauthorized purchases in 23 fraudulent transactions. In total, Riley embezzled $221,164 in funds from her employers’ checking account and credit cards.
According to court documents, Riley knew that R.E. suffered from two diagnoses of cancer, one of which involved a brain tumor. Riley continued to steal from their accounts while they were in Houston, Texas, for three months while R.E. received life-saving cancer treatments. As a result of her fraud scheme, the victims were forced to withdraw a considerable sum of money from their retirement funds in order to cover the lost funds stolen by Riley.
When the victims discovered unexplained transactions on their accounts and told Riley they were going to meet with the bank personally, she sent a text message admitting to her fraud and theft. Riley’s text messages stated that she embezzled these funds because she was trying to “make ends meet.” She also asked the victims to not press charges.
In reality, according to court documents, many of the automatic withdrawal and credit card transactions were to purchase luxury items. Riley purchased a car for herself and then made payments utilizing the victims’ bank account. She purchased airline tickets and stayed in expensive hotels overseas. Riley’s credit card receipts showed that she ate at expensive restaurants nearly every night and traveled to Kansas City, St. Louis, New York, Chicago and many cities overseas. Riley used her credit cards to pay for her tuition at Drury University and Missouri State University. She repeatedly used her credit cards to make high-end clothing and technology purchases. Riley also made cash withdrawals and purchased health and beauty products that she was selling as a side business.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Secret Service and the Greene County, Mo., Sheriff’s Department.
Southern Oregon Lawyer Sentenced After Pleading Guilty to Tax CrimeRead the Press Release
EUGENE, Ore. - Shane Reed, 53, of Rogue River, Oregon, pleaded guilty in U.S. District Court in Eugene to willfully failing to pay $125,000 in federal income taxes. He was sentenced to five years of probation.
Reed admitted that in 2006, 2007 and 2008 he filed U.S. Income Tax returns reporting a total of $880,000. Based on that income he owed $129,000 in income taxes and did not pay those taxes. Rather, he used his substantial earnings to fund a lavish lifestyle that included mortgage payments on a million dollar home with a heated swimming pool, $110,000 in vehicle expenditures, and $40,000 to pay for purchases at high end retail stores.
According to court records, Reed has since paid all of his taxes for 2006-2008, but still owes the IRS about $150,000 in back taxes for 2012 and 2013. As a part of his probation, the Court ordered Reed to pay all of his taxes and to comply with all tax laws required to lawfully operate his law practice. Reed was additionally ordered to perform 250 hours of community service.
U. S. Magistrate Judge Thomas Coffin presided over the case, which was investigated by the Internal Revenue Service – Criminal Investigations, and prosecuted by Assistant U. S. Attorney Chris Cardani.
Southern California Medical Supply Company Owner Sentenced to Four Years in Prison for $8.3 Million Medicare Fraud SchemeRead the Press Release
A registered nurse who owned a medical supply company was sentenced today in Los Angeles to four years in federal prison for her role in an $8.3 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Los Angeles Region, Assistant Director in Charge David L. Bowdich of the FBI’s Los Angeles Field Office and Special Agent in Charge Erick Martinez of the IRS-Criminal Investigation’s Los Angeles Field Office made the announcement.
Olufunke Ibiyemi Fadojutimi, 43, of Carson, California, was convicted by a jury on July 31, 2014, of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering. In addition to the prison term, U.S. District Judge Christina A. Snyder of the Central District of California ordered Fadojutimi was ordered to pay restitution in the amount of $4,372,466, jointly and severally with a co-defendant.
During trial, the evidence showed that Fadojutimi, a registered nurse and the former owner of Lutemi Medical Supply, fraudulently billed Medicare for more than $8 million of durable medical equipment that was not medically necessary. The evidence specifically showed that, between September 2003 and May 2010, Fadojutimi and others paid cash kickbacks to patient recruiters in exchange for patient referrals, and additional kickbacks to physicians for fraudulent prescriptions for medically unnecessary durable medical equipment, such as power wheelchairs. Fadojutimi and others then used these prescriptions to support fraudulent claims to Medicare.
As a result of this fraud scheme, Fadojutimi and others submitted approximately $8.3 million in false and fraudulent claims to Medicare, and received almost $4.3 million on those claims.
The case was investigated by the FBI, IRS, and HHS-OIG’s Los Angeles Regional Office, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case was prosecuted by Trial Attorneys Fred Medick and Blanca Quintero of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Sodus Woman Sentenced on False Statement ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Sara Carbajal, 42, of Sodus, NY, who was convicted of submitting a false and fraudulent written statement, was sentenced to one year probation by U.S. District Judge Elizabeth A.Wolford.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that Carbajal managed Carbajal Labor. In that role, the defendant filed a false Form I-9 for employment eligibility verification. On the form, Carbajal affirmed under penalty of perjury that the contents were true and accurate when she knew that the individual whose information she was verifying was present illegally in the United States and not eligible for employment.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under direction of Acting Special Agent in Charge J. Michael Kennedy.
Siemens Medical Solutions USA, Inc., to Pay $5.9 Million to Resolve Civil False Claims Act AllegationsRead the Press Release
PHILADELPHIA – Healthcare technology company Siemens Medical Solutions USA, Inc. (“SMS”) has agreed to pay $5.9 million to resolve an investigation into the overcharging of the federal government for purchases of medical imaging equipment. The civil resolution was announced today by United States Attorney Zane David Memeger.
On behalf of the United State Department of Defense (“DoD”), the Defense Supply Center of Philadelphia (“DSCP”) negotiated and entered into an agreement with SMS for the purchase of medical imaging equipment and support products between 2002 and 2008 (the “DSCP Contract”). The United States Department of Veterans Affairs (“VA”) also purchased medical imaging equipment through the DSCP Contract.
The United States alleged that SMS failed to provide the best price for certain DoD purchases made pursuant to the DSCP Contract. Specifically, SMS did not give the DoD the largest discount that a private or commercial customer had received for a “like system,” and, in doing so, overcharged the government. SMS also withheld information about this overcharging and kept money that it was not entitled to retain. After SMS uncovered evidence of the overcharging, SMS issued mass discounts on multiple occasions to address the misbilling on a prospective basis. SMS did not correct the overcharging that had occurred and further concealed it from the United States.
The United States also alleged that SMS overcharged the VA for certain imaging equipment orders – purchases made under the DSCP Contract – that had been converted to a newer model. Specifically, certain VA orders did not receive the larger discount that applied to the newer model which was delivered.
The allegations arose from an investigation led by the Department of Defense Office of Inspector General's Defense Criminal Investigative Service. The case was handled by Assistant United States Attorneys Eric D. Gill and Viveca D. Parker.
Sex offender convicted of failure to update registrationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Bobby Wayne Blackwell, 57, of Morgantown, West Virginia, was convicted in federal court after he admitted that he failed to update his sex offender registration, United States Attorney William J. Ihlenfeld, II, announced today.
Blackwell was previously convicted of “Rape” in November 1975 in the Court of Common Pleas of Clinton County, Pennsylvania. He was also convicted of “Attempt to Commit Rape” in October 1983 in the Court of Common Pleas of Lycoming County, Pennsylvania. As a result of these convictions, he is required to register as a sex offender.
An investigation by the West Virginia State Police and the United States Marshals Service revealed that in approximately October 2014, Blackwell moved from West Virginia to Pennsylvania without updating his sex offender registration.
Blackwell pled guilty to one count of “Failure to Update Sex Offender Registration.” He faces up to ten years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Sacramento Police Detective Receives Award for His Contribution to the Mission of the U.S. Attorney’s Office and the Department of JusticeRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2014 winner of the Eastern District of California Law Enforcement Award for Outstanding Investigator in the Sacramento Division. This award is one of four awards presented annually to a law enforcement agency and an officer in the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal, state, and local law enforcement in addressing public safety issues in this region.
The winner of Sacramento Division’s Outstanding Investigator Award is Sacramento Police Detective Derek Stigerts for his work investigating crimes involving the sex trafficking of minors. Over the years, Detective Stigerts has worked on some of the most significant sex trafficking cases prosecuted by the U.S. Attorney’s Office. Two of those cases were brought against violent pimps Deandre Brown and Steven McKesson and resulted in lengthy federal prison sentences. Just last year, Detective Stigerts was instrumental in the conviction of Percy Love, a sex trafficker currently awaiting sentencing by the district court. None of those results would have been possible without Detective Stigerts’ dedication and expertise. He is a nationally recognized expert on sex trafficking crimes, and he frequently provides training to other law enforcement agencies. Even more important is Detective Stigerts’ unseen work with the victims of these crimes, helping them to reach the point where they can tell their stories and move forward with their lives.
U.S. Attorney Wagner stated: “It is my honor to recognize Derek Stigerts for the incredibly difficult and important work that he does. He brings some of our most dangerous criminals to justice, and he protects and assists some of the most vulnerable members of our community. It is because of Derek’s and his colleagues’ hard work that the Eastern District of California is seen as a national leader in the investigation and prosecution of the commercial exploitation of children. We thank him for his service.”
Earlier this year, two of the 2014 awards were presented to the Tehama County Sheriff’s Office and the Fresno County Sheriff’s office for their outstanding work in cooperation with the U.S. Attorney’s Office. The fourth and final award winner will be announced next week.
Rowan County Man Sentenced for Attempting to Aid International Terrorist OrganizationRead the Press Release
GREENSBORO, N.C. - U.S. Attorney Ripley Rand of the Middle District of North Carolina, Assistant Attorney General for National Security John P. Carlin, and Special Agent in Charge John Strong of the FBI’s Charlotte, North Carolina, Division announced today that Donald Ray Morgan of Rowan County, North Carolina, was sentenced to 243 months in federal prison, 3 years supervised release and a $200.00 special assessment for attempting to provide material support to a designated foreign terrorist organization and possession of firearm by a felon.
Donald Ray Morgan, age 44, of Rowan County was sentenced this morning by United States District Court Judge Thomas D. Schroeder. On October 30, 2014, MORGAN pleaded guilty to attempted provision of material support to a foreign terrorist organization and possession of firearm by a felon.
According to court documents, Morgan knowingly attempted beginning in or about January 2014 until on or about August 2, 2014, to provide support and resources, including his own services, to the designated foreign terrorist organization al-Qa’ida in Iraq, also known as Islamic State of Iraq and the Levant (“ISIL”) and the Islamic State of Iraq an al-Sham (“ISIS”). On at least one occasion Morgan unsuccessfully attempted to travel from Lebanon to Syria to join ISIL/ISIS. Morgan also frequently used social media and an interview with an international journalist to express his support for the ISIL/ISIS and violent terrorist activities.
Court documents also reveal that Morgan possessed and later sold an assault rifle in January 2012 after having been convicted of a North Carolina state felony offense in 1997.
Morgan was initially arrested on August 2, 2014, at JFK International Airport in New York, New York, on a federal indictment for possession of a firearm by a felon, a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
U.S. Attorney Rand commended the work of the Federal Bureau of Investigation, the Greensboro Resident Agency Joint Terrorism Task Force (Greensboro Police Department, Guilford County Sheriff’s Office, High Point Police Department, and the Winston-Salem Police Department), the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, and United States Customs and Border Protection in bringing MORGAN to justice. Rand added, “We will continue to do everything we can to shine a light on the false allure of violent extremism and protect innocent people from terrorist activity, whether inside or outside the United States.”
“Morgan attempted to travel to Syria in order to provide material support to ISIL,” said Assistant Attorney General Carlin. “The sentence in this case demonstrates that we will continue to bring to justice those who engage in this conduct, and that protecting the nation against these threats remains one of our highest priorities.”
"Donald Ray Morgan proved himself to be a threat to national security. He traveled overseas with intentions to join the violent terrorist group, ISIL in Syria. One of the FBI’s highest priorities is to stop American citizens who support terrorist organizations and ensure they are held accountable for their actions,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
The investigation was conducted by the Federal Bureau of Investigation, Charlotte Division, the Greensboro Resident Agency Joint Terrorism Task Force (JTTF), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Greensboro JTTF includes the following agencies: Federal Bureau of Investigation, Greensboro Police Department, Guilford County Sheriff’s Office, High Point Police Department, and the Winston-Salem Police Department. The prosecution is being handled by Assistant United States Attorney Graham Green with the assistance of Trial Attorney Paul Casey of the Counterterrorism Section of the Justice Department’s National Security Division.
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Rio Rancho Man Sentenced to Federal Prison for Heroin Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Mark Herrera, 29, of Rio Rancho, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 70 months in prison followed by three years of supervised release for his conviction on heroin trafficking and firearms charges.
Herrera was arrested in Aug. 2014, on a criminal complaint after officers executed federal search warrants on his vehicle and residence and seized more than seven ounces of heroin, marijuana, approximately $5,000.00 in cash, a firearm and ammunition, and drug paraphernalia. In his post-arrest statement, Herrera told the officers that he sold six to eight ounces of heroin every two to three days, and that he used a firearm for protection.
On Feb. 13, 2015, Herrera pled guilty to a two-count felony information charging him with being a felon in possession of a firearm and ammunition and possession of heroin with intent to distribute. In entering the guilty plea, Herrera admitted that when he was arrested on Aug. 1, 2014, he possessed approximately seven ounces of heroin, drug paraphernalia, $5,000.00 in cash, and a loaded semi-automatic pistol. At the time of his arrest, Herrera was prohibited from possessing firearms or ammunition because he previously had been convicted of robbery and escape in Colorado.
This case was investigated by the Albuquerque offices of the ATF and the DEA and the Rio Rancho Police Department. Assistant U.S. Attorney Presiliano Torrez prosecuted the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Rhode Island Woman Charged with Defrauding Worcester-Area ImmigrantsRead the Press Release
BOSTON – A Rhode Island woman was arrested this morning and charged in U.S. District Court in Worcester with federal wire fraud in connection with a scheme to defraud undocumented immigrants that netted over $600,000.
Patria Zuniga, 52, of Woonsocket, RI, was charged with one count of wire fraud. She was arrested at her home this morning and appeared before U.S. Magistrate Judge David H. Hennessy this afternoon.
According to the complaint, from 2010 through 2012, Zuniga posed as an immigration official and specifically targeted undocumented immigrants who sought to normalize their immigration status. As part of her scheme, Zuniga told her victims that she could assist them in obtaining lawful permanent residence in the U.S. in exchange for payments of $9,000 to $10,000 per person. After receiving the initial payments, Zuniga demanded additional funds from immigrants and their families, and threatened to have them deported if they refused to pay.
Over the course of the scheme, it is alleged that Zuniga collected over $600,000 from immigrants via cash, money orders, and bank and Western Union wire transfers. Zuniga also allegedly attempted to distance herself from the fraud scheme and avoid detection by having third-parties (including family members) receive the payments on her behalf.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz, Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigation in Boston, and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was investigated by HSI’s Document and Benefit Fraud Task Force, and is being prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Postal Service Employees Arrested at O’Hare Airport for Opening and Stealing Contents from Packages Including NarcoticsRead the Press Release
CHICAGO — Two Postal Service employees were arrested today for allegedly opening and stealing the contents of Express Mail and Priority Mail parcels, which included narcotics. The defendants, Aramis Brown and Zaphronsia Wheeler, were arrested following an investigation by United States Postal Service Office of Inspector General (Postal OIG) and the United States Postal Inspection Service (USPIS).
Brown, 29, of Chicago, and Wheeler, 39, of Chicago, were charged by criminal complaints that were unsealed following their initial appearances today. They appeared today before Magistrate Judge Michael T. Mason in U.S. District Court and were released on a $4500 bond.
According to the complaint affidavits, Brown and Wheeler are Postal Service employees at the International Service Center located at O’Hare Airport, Chicago, Illinois (“International Service Center”) and allegedly have been opening and stealing the contents of Express Mail and Priority Mail parcels. These rifled Express and Priority Mail parcels fit the general profile for parcels which contain narcotics, in that they are sent from narcotics source states, from fictitious senders or to fictitious recipients, and narcotics sniffing canines alert to the parcels. The defendants are alleged to have stolen contents, some which included narcotics, out of Express and Priority Mail parcels from at least 16 pieces of mail on at least seven occasions.
The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Scott Caspall, Special Agent-In-Charge of the Chicago Great Lakes Area Field Office of the U.S. Postal Service Office of Inspector General; and Tony Gomez, Postal Inspector in Charge, U.S. Postal Inspection Service. Cook County Sheriff’s Office, Plainfield and Romeoville Police Departments assisted in the investigation.
The government is being represented by Special Assistant U.S. Attorney William Novak.
Theft of mail and narcotics offenses carries a maximum penalty of 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
ComplaintPittsburgh Man Charged with Theft of Deceased Mother's Social Security BenefitsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of Theft of Government Property, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on May 12, named Gilbert Anthony Lucas, 67.
According to indictment, Lucas converted to his own use Social Security benefits which were intended for his deceased mother.
The law provides for a maximum total sentence of ten years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Social Security Administration, Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Phoenix Cocaine Trafficker Sentenced to More Than 26 Years in PrisonRead the Press Release
PHOENIX – On May 11, 2015, Terance Taylor Prigge, 54, of Phoenix, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 26.6 years’ imprisonment followed by 10 years’ supervised release. Prigge was convicted by a federal jury on Feb. 12, 2015, of five felony charges that included conspiracy to possess with intent to distribute cocaine, conspiracy to commit money laundering, international money laundering, promotional money laundering, and possession with intent to distribute cocaine.
The trial evidence showed that Prigge’s drug trafficking organization transported at least 122 kilograms of cocaine from Latin America, into the American southwest, and then to Chicago from at least early 2010 to September 2013. The organization used private charter flights to transport the drugs from Phoenix and Southern California to Chicago. Prigge was arrested after he exited one of those flights with a co-conspirator in DeKalb, Ill. with 22 kilograms of cocaine in their luggage in September 2013.
The evidence further showed that Prigge had extensive contacts with sources of drug supply in at least two Latin American countries. He was convicted of International Money Laundering for organizing the transfer of $100,000 to an individual in Guatemala in support of a drug deal. He was also convicted of taking other steps to launder money in support of his drug trafficking. Prigge was convicted previously for trafficking cocaine from Panama into the United States and served seven years in prison.
The investigation in this case was conducted by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, the Scottsdale Police Department, and the DeKalb, Ill. Police Department. The prosecution was handled by Karen McDonald and Alexander Samuels, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-13-01363-PHX-GMS
RELEASE NUMBER: 2015-035_ Prigge
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Palmyra Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y. U.S. Attorney William J. Hochul, Jr. announced today that Cody Yerden, 20 of Palmyra, NY, pleaded guilty to possessing child pornography involving pre-pubescent minors before U.S. District Court Judge Charles J. Siragusa. The charge carries a maximum sentence of 20 years in prison, a fine of up to $250,000, or both.Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that Yerden was first identified during an online child exploitation investigation conducted by Homeland Security Investigations. Agents learned that the defendant was posting images of child pornography to online websites located outside the United States which depicted children as young as four years old being sexually abused. They traced the activity to Yerden’s home, and executed a federal search warrant in March 2014. In an interview conducted while agents were executing the search warrant, the defendant admitted to using specific terms to search out images of child pornography. Agents seized multiple digital items from Yerden and found over a thousand images and movies showing young children being raped on several computers and an iPod.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations under the direction of Acting Special Agent in Charge J. Michael Kennedy.
Sentencing is scheduled for August 19, 2015, at 10:00 a.m. before Judge Siragusa.
Owner of ‘Polygraph.Com’ Pleads Guilty to Training Customers to Lie During Federally Administered Polygraph ExaminationsRead the Press Release
A former Oklahoma City law enforcement officer and owner of “Polygraph.com” pleaded guilty today to obstruction of justice and mail fraud for training customers to lie and conceal crimes during polygraph examinations.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Assistant Commissioner Anthony Triplett of U.S. Customs and Border Protection’s Office of Internal Affairs and Special Agent in Charge James E. Finch of the Federal Bureau of Investigation’s (FBI) Oklahoma City Field Office made the announcement.
“Lying, deception and fraud cannot be allowed to influence the hiring of national security and law enforcement officials, particularly when it might affect the security of our borders,” said Assistant Attorney General Caldwell. “Today’s conviction sends a message that we pursue those who attempt to corrupt law enforcement wherever and however they may try to do so.”
Douglas Williams, 69, of Norman, Oklahoma, pleaded guilty to a five-count indictment charging him with mail fraud and obstruction. Williams was indicted on Nov. 14, 2014, in the Western District of Oklahoma.
According to admissions made in connection with his plea, Williams, the owner and operator of “Polygraph.com,” marketed his training services to people appearing for polygraph examinations before federal, state and local law enforcement agencies and federal intelligence agencies, as well as people required to take polygraph examinations under the terms of their parole or probation.
Williams further admitted that he trained an individual posing as a federal law enforcement officer to lie and conceal involvement in criminal activity from an internal agency investigation. Williams also admitted to having trained a second individual posing as an applicant seeking federal employment to lie and conceal crimes in a pre-employment polygraph examination. Williams, who was paid for both training sessions, admitted to having instructed the individuals to deny having received his polygraph training.
The investigation is being investigated by U.S. Custom and Border Protection’s Office of Internal Affairs and the FBI’s Oklahoma City Field Office. The case is being prosecuted by Trial Attorneys Heidi Boutros Gesch and Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Ohio man convicted of heroin, cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Rayshawn L. Ball, 31, of Columbus, Ohio, was convicted in federal court on heroin and cocaine trafficking charges, United States Attorney William J. Ihlenfeld, II, announced today.
An investigation by the Marshall County Drug Task Force, a HIDTA-funded initiative, revealed that Ball engaged in heroin and cocaine trafficking in Ohio County, West Virginia throughout late 2014 and early 2015.
Ball pled guilty to one count of “Possession with Intent to Distribute Schedule I and Schedule II Controlled Substances.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Norwegian Shipping Company and Engineering Officers Charged with Environmental Crimes and Obstruction of JusticeRead the Press Release
A federal grand jury in Mobile, Alabama, has returned a seven-count indictment charging Det Stavangerske Dampskibsselskab AS (DSD Shipping) and four employees with violating the Act to Prevent Pollution from Ships (APPS), conspiracy, obstruction of justice and witness tampering, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Kenyen R. Brown for the Southern District of Alabama. DSD Shipping is a Norwegian-based shipping company that operates the oil tanker M/T Stavanger Blossom, a vessel engaged in the international transportation of crude oil. Also indicted were four engineering officers employed by DSD Shipping to work aboard the vessel, Daniel Paul Dancu, 51, of Romania, Bo Gao, 49, of China, Xiaobing Chen, 34, of China, and Xin Zhong, 28, of China.
According to the indictment, in 2014, DSD Shipping and its employees conspired to bypass pollution prevention equipment aboard the M/T Stavanger Blossom and to conceal the direct discharge of waste oil and oil-contaminated waste water from the vessel into the sea. The operation of marine vessels, like the M/T Stavanger Blossom, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard. Despite these requirements, DSD Shipping and its employees used a bypass pipe to circumvent pollution prevention equipment and discharge waste oil and oil-contaminated waste water directly into the sea. DSD Shipping and its employees also filled plastic bags with waste oil from a sludge tank aboard the vessel and then discarded the oil-filled plastic bags overboard into the sea.
The indictment further alleges that prior to an inspection by the U.S. Coast Guard, Chen ordered crewmembers to remove the bypass pipe, install a new pipe and repaint the piping to hide the illegal discharges. Chen and Zhong then ordered crewmembers to lie to the U.S. Coast Guard and instructed them to say that no plastic bags containing waste oil were discarded overboard, that all plastic bags remained aboard the vessel and to provide the incorrect quantity of bags generated from the cleaning of the sludge tank. To further hide the illegal discharges of waste oil and oil-contaminated waste water, DSD Shipping and its employees maintained a fictitious oil record book that failed to record the disposal, transfer, or overboard discharge of oil from the vessel. The oil record book also contained false entries stating that pollution prevention equipment had been used when it had not.
DSD Shipping and the engineering officers were charged with violating the APPS for failing to record overboard discharges in the vessel’s oil record book and garbage record book and with obstruction of justice and witness tampering for presenting false documents and deceiving the Coast Guard during an inspection. If convicted, DSD Shipping could be fined up to $500,000 per count, in addition to other possible penalties. Dancu, Gao, Chen and Zhong face a maximum penalty of 20 years in prison for the obstruction of justice charges. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until and unless proven guilty.
This case was investigated by the Sector Mobile of the U.S. Coast Guard, Investigative Services of the U.S. Coast Guard and the Criminal Investigation Division of the Environmental Protection Agency. Assistant U.S. Attorney Mike D. Anderson, with the U.S. Attorney's Office for the Southern District of Alabama and ECS Trial Attorney Shane N. Waller are prosecuting the case.
North Tonawanda Man Sentenced to Statutory Maximum for Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.– Attorney William J. Hochul, Jr. announced today that Thomas A. Sparks, 23, of North Tonawanda, NY, who was convicted of receipt of child pornography, was sentenced to 20 years in prison and 15 years supervised release by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in June 2013, the Federal Bureau of Investigation received a report that Sparks and a friend were downloading child pornography from the internet. Agents interviewed Sparks at his residence, who admitted that he had downloaded child pornography from the internet onto the flash drive. Sparks also stated that prior to FBI’s arrival, he smashed the flash drive and threw it in the garbage. Sparks did this after getting a phone call he received from a friend stating that the FBI was on the way to interview him.
The flash drive was recovered from the garbage and was repaired by the FBI in Quantico, Virgina. A forensic analysis of the flash drive revealed approximately 94 images of child pornography. During the investigation, agents also recovered an alleged contract Sparks drafted. The contract sought to have his girlfriend agree that, in the event they marry and have children, she would participate in and assist the defendant in committing acts of child exploitation. Additionally, as part of the plea agreement, Sparks admitted that he engaged in a pattern of activity involving the sexual abuse or exploitation of a minor.
The defendant’s conduct in the present case occurred approximately one month after being arrested and charged by the New York State Police with a separate child pornography investigation.
The sentencing is the result of an investigation by Agents of the Federal Bureau of Investigation, Detectives of the Cheektowaga Police Department, under the direction of Police Chief David Zack, and Investigators from the New York State Police, under the direction of Major Michael Cerretto. Additional assistance was also provided by the FBI Forensic Laboratory in Quantico, Virginia, and the Western New York Regional Computer Forensic Laboratory.
North Carolina Man Sentenced to Serve 243 Months in Prison for Attempting to Provide Material Support to a Designated Foreign Terrorist OrganizationRead the Press Release
A North Carolina man was sentenced to 243 months in federal prison, followed by a term of three years supervised release, for attempting to provide material support to a designated foreign terrorist organization and possession of firearm by a felon, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Ripley Rand of the Middle District of North Carolina and Special Agent in Charge John Strong of the FBI’s Charlotte, North Carolina, Division.
Donald Ray Morgan, 44, of Rowan County, North Carolina, was sentenced by U.S. District Court Judge Thomas D. Schroeder of the Middle District of North Carolina. On Oct. 30, 2014, Morgan pleaded guilty to attempting to provide material support to a designated foreign terrorist organization and possession of firearm by a felon.
According to court documents, Morgan knowingly attempted beginning in or about January 2014 until on or about Aug. 2, 2014, to provide support and resources, including his own services, to the designated foreign terrorist organization the Islamic State of Iraq and the Levant (ISIL). On at least one occasion, Morgan unsuccessfully attempted to travel from Lebanon to Syria to join ISIL. Morgan also frequently used social media and an interview with an international journalist to express his support for ISIL and violent terrorist activities.
“Morgan attempted to travel to Syria in order to provide material support to ISIL,” said Assistant Attorney General Carlin. “The sentence in this case demonstrates that we will continue to bring to justice those who engage in this conduct, and that protecting the nation against these threats remains one of our highest priorities.”
“We will continue to do everything we can to shine a light on the false allure of violent extremism and protect innocent people from terrorist activity, whether inside or outside the United States,” said U.S. Attorney Rand.
“Donald Ray Morgan proved himself to be a threat to national security,” said Special Agent in Charge Strong. “He traveled overseas with intentions to join the violent terrorist group, ISIL in Syria. One of the FBI’s highest priorities is to stop American citizens who support terrorist organizations and ensure they are held accountable for their actions.”
Court documents also reveal that Morgan possessed and later sold an assault rifle in January 2012, after having been convicted of a North Carolina state felony offense in 1997.
Morgan was initially arrested on Aug. 2, 2014, at John F. Kennedy International Airport in New York on a federal indictment for possession of a firearm by a felon.
Assistant Attorney General Carlin joined U.S. Attorney Rand in commending the work of the FBI’s Charlotte Division and the Greensboro, North Carolina, Resident Agency Joint Terrorism Task Force (Greensboro Police Department; Guilford County, North Carolina Sheriff’s Office; High Point, North Carolina Police Department; and the Winston-Salem, North Carolina, Police Department), the ATF, the U.S. Marshals Service and U.S. Customs and Border Protection in bringing Morgan to justice.
The prosecution is being handled by Assistant U.S. Attorney Graham Green of the Middle District of North Carolina, with the assistance of Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
New York Man Charged in Connection with Scranton Bank RobberyRead the Press Release
SCRANTON - The United States Attorney's Office for the Middle District of Pennsylvania announced that an indictment was returned yesterday afternoon by a federal grand jury in Scranton charging a New York man with armed bank robbery.
Jemel Laquan King, a/k/a “Melo,” age 37, a resident of New York, is charged with conspiring with others to commit the November 26, 2014 armed robbery of the NBT Bank on Keyser Avenue in Scranton. Approximately $91,000 was taken during the robbery. King is also charged with the use of a firearm during the commission of the crime.
Those previously charged with conspiring with King to commit the robbery include Jule Futrell, age 42, Endicott, New York, and Dorian Whitehead, age 29, Binghamton, New York.
The charges are the result of an investigation by the Federal Bureau of Investigation - Scranton and Binghamton offices. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties in this case include 25 years’ incarceration, plus an additional minimum of 7 years’ incarceration for the use of the firearm during the commission of a violent crime. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Orleans Woman Pleads Guilty to Stealing Educational FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KIM CASSELL, age 52, of Ruston, pled guilty today to stealing money from Open World Family Services, Inc. (“Open World”). Open World was a non-profit 501(c)(3) charitable corporation organized for the purpose of helping students in the greater New Orleans area grow academically.
According to court documents, from March 2010 until June 2012, CASSELL knowingly used more than $140,000 in federal grant money for her personal benefit, rather than for its intended educational purposes.
CASSELL faces a maximum term of imprisonment of ten years, three years of supervised release following any term of imprisonment, a $250,000 fine, and restitution to the United States Department of Education. U.S. DistrictJudge Ivan L.R. Lemelle set sentencing for August 19, 2015.
U.S. Attorney Polite praised the work of the U.S. Department of Education, the Federal Bureau of Investigation, and the Office of the Louisiana Legislative Auditor in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Kim Cassell Factual Basis.pdf (332.88 KB)
New London Man Sentenced for Production of Child PornographyRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on May 11, 2015, Shane M. Sells (age: 38) of New London, Wisconsin, was sentenced by Chief District Judge William C. Griesbach to 180 months imprisonment for production of child pornography in violation of Title 18 United States Code, Section 2251(a). Upon his release Sells will be on federal supervised release for the remainder of his life.
Sells engaged in sexually explicit conduct with minor children for the purpose of producing a video of that conduct, as well as knowingly possessing hundreds of thousands of DVDs each containing countless images of child pornography he had downloaded from the internet.
In pronouncing sentence, Judge Griesbach noted the horrendous nature of Sells’ crime, as well as the lifelong effect that sexual exploitation crimes have on victims. The court dismissed as “rationalization” Sells’ contention that he was unable to control his addiction to child pornography. Judge Griesbach expressed his hope that the 15 year prison sentence followed by a lifetime of supervision would deter others in the community from any involvement in the production or possession of child pornography.
The case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation and the Shawano County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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New Jersey Man Sentenced in Manhattan Federal Court to 10 Years in Prison for Multimillion-Dollar Investment FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CHARLES HUGGINS was sentenced in Manhattan federal court to 10 years in prison for perpetrating an $8 million investment fraud against dozens of victims across the United States. HUGGINS was convicted on October 10, 2014, following a two-week jury trial before U.S. District Court Judge Sidney H. Stein, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Charles Huggins took millions of dollars of his investors’ money under false pretenses and used it to pay for personal expenses, including luxuries. For his crimes, Huggins has been sentenced to 10 years in prison and ordered to relinquish his ill-gotten gains.”
According to the Complaint and other filings in Manhattan federal court, and the evidence presented at trial:
For nearly a decade, through September 2011, HUGGINS and others solicited more than $8 million from dozens of investors through various companies, including companies known as JYork Industries Inc. (“JYork”) and Urogo Inc. (“Urogo”). Huggins and his co-conspirators made false and misleading representations that, among other things, they would use the investors’ money exclusively to mine gold and diamonds from Sierra Leone and Liberia. HUGGINS falsely promised investors that their investments were risk-free and that they would receive high rates of return, which he represented were based upon the profits generated by the sale of the gold and diamonds in the United States.
HUGGINS and his co-conspirators misappropriated the investors’ funds and used those funds for their own purposes or to repay other investors. Contrary to the representations of HUGGINS and his co-conspirators, most of the investment funds were used to pay HUGGINS’s personal expenses and for purposes entirely unrelated to what was represented to investors. For example, hundreds of thousands of dollars in investor funds were diverted to Orpheus Inc., a record label owned by HUGGINS, and used to pay, among other expenses, HUGGINS’s $7,200 monthly apartment rent in the Sutton Place neighborhood of Manhattan, for upkeep of HUGGINS’s Mercedes Benz, restaurant bills, clothes from expensive boutiques, and personal credit card bills. HUGGINS personally received hundreds of thousands of dollars in cash and gave tens of thousands of dollars in cash to other members of his family and his co-conspirators. A portion of the funds was used to make payments to other investors, as in a classic Ponzi scheme.
Dozens of victims across the United States lost their money in the scheme. When certain investors complained that they had not received the investment return that they were promised, HUGGINS gave those investors small repayments from funds invested by others, or claimed that he converted their investment into restricted shares of Oraco Resources, a publicly traded company of which Huggins was a majority shareholder, that were essentially worthless.
In addition to his prison term, HUGGINS, 69, of Edgewater, New Jersey, was sentenced to three years of supervised release, and ordered to pay forfeiture and restitution of $2,383,255.26. HUGGINS was remanded following his conviction.
In sentencing HUGGINS, Judge Stein said, “This fraud was extensive, brazen, and sophisticated.” He also said that HUGGINS “lived a very luxurious lifestyle on the money of presumably hardworking individuals . . . people who were completely innocent.”
Two other defendants, Christopher Butchko and Anne Thomas, previously pled guilty for their roles in the fraudulent scheme, and await sentencing. Butchko pled guilty before Judge Stein on August 11, 2014, to conspiracy to commit wire fraud, and is scheduled to be sentenced on May 28, 2015 at 11:00 a.m. Thomas pled guilty before Judge Stein on August 18, 2014, to conspiracy to commit wire fraud, conspiracy to commit money laundering, structuring, and bank fraud, and is scheduled to be sentenced on June 24, 2015, at 3:30 p.m.
Mr. Bharara praised the work of the FBI in the investigation of this case. He added that the investigation is continuing.
The case is being handled by the General Crimes Unit of the United States Attorney's Office. Assistant United States Attorneys Edward A. Imperatore and Andrea L. Surratt are in charge of the prosecution.
Nampa Woman Pleads Guilty to Charge of Use of Interstate Commerce Facilities in the Commission of Murder-for-HireRead the Press Release
BOISE – Monique Christine Martinez, 32, of Nampa, Idaho, pleaded guilty yesterday to one count of use of interstate commerce facilities in the commission of murder-for-hire, U.S. Attorney Wendy J. Olson announced. Martinez was indicted by a federal grand jury on November 13, 2014.
According to court documents, Martinez contacted an individual by Facebook in California in order to hire someone to kill her husband. On October 17, 2014, Martinez met with an undercover agent, whom she believed was a hit man. Martinez advised the undercover agent that she wanted her husband dead and provided the agent with $350 in U.S. currency and promised additional payment later in the week. She provided the agent with a hand written note, which contained her husband’s name, the address of his employment and the address of his mother’s home, where he was recently living. Martinez showed the agent photographs of her husband on her smartphone, provided his work schedule, described his tattoos, and described the vehicle he drove. Martinez suggested that the best time to kill her husband was either as he got off work or when he was leaving his gym. Martinez was arrested in Nampa on October 22, 2014, at her residence in Nampa.
Using interstate commerce facilities in the commission of murder-for-hire is punishable by up to ten years in prison, a $250,000 fine, and three years of supervised release. Martinez will be sentenced on August 5, 2015, before Chief U.S. District Judge B. Lynn Winmill.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
Mother and son plead guilty in federal court to drug crimesRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that a mother and son pled guilty before United States District Judge Irene C. Berger in Beckley. Tricia Diane Arbaugh, 43, of Murfreesboro, Tennessee, pled guilty to traveling in interstate commerce to facilitate unlawful activity. She faces up to five years of imprisonment and a $250,000 fine. She admitted that she brought oxycodone and oxymorphone from Tennessee and distributed them in Lewisburg, West Virginia. Her son, Jeffrey Stephen McCallister, 24, also of Murfreesboro, pled guilty to two counts of using a communication facility to facilitate a felony. He admitted that he used a telephone on one occasion to set up a drug deal in which he sold oxymorphone to a confidential information working with authorities, and on another occasion to set up a transaction in which he sold oxymorphone and buprenorphine to an informant. He faces up to eight years in prison and a fine of $500,000. The sentencings are set for August 26, 2015.
These cases were investigated by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier Valley Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. Assistant United States Attorney John File prosecuted the cases.
Monroe County Man Pleads Guilty to Producing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 45-year-old Tobyhanna man pleaded guilty today before U.S. Magistrate Judge Karoline Mehalchick in Scranton, to producing child pornography.
According to United States Attorney Peter Smith, the defendant, Robert Ferraro, admitted to using and persuading a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. Ferraro admitted to committing the crime between August 2013 and January 2015.
Ferraro was indicted by a federal grand jury in March 2015, as a result of an investigation by Homeland Security Investigations, the Pennsylvania State Police, and the Monroe County District Attorney’s Office.
Senior U.S. District Court Judge Richard P. Conaboy will impose sentence in the case. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative
launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mission Woman Sentenced to 36 Months for Stabbing Man at Gas StationRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Assault with a Dangerous Weapon was sentenced on May 12, 2015, by U.S. District Judge Roberto A. Lange.
Misty Fawn Swalley, age 24, was sentenced to 36 months in custody, two years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Swalley was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on July 15, 2014. She pled guilty to Assault with a Dangerous Weapon on September 24, 2014.
On June 25, 2014, Swalley was at a gas station in Mission with some other people. The victim was also at the gas station, talking to an individual who was with Swalley. Swalley became upset at the conversation taking place, and circled behind the victim and stabbed him in the back with a steak knife.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim M. Maher prosecuted the case.
Swalley was immediately turned over to the custody of the U.S. Marshals Service.
Miami Dade College Student Sentenced to 2 Years in Prison for Stolen Identity Tax Refund Fraud Scheme Involving Student Financial Services AccountsRead the Press Release
A Miami Dade College student was sentenced to 24 months in prison, followed by two years of supervised release, and was ordered to pay restitution in the amount of $7,712, for his participation in a stolen identity tax refund fraud scheme involving his student financial services account.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Erving Jaques Etienne, 21, of Hollywood, previously pled guilty to one count of theft of government property, in violation of Title 18, United States Code, Sections 641 and 2.
According to court documents, Etienne received nine fraudulently obtained U.S. Department of Treasury tax refunds into his personal Higher One, Inc. (HOI) account. HOI provided financial services to colleges and universities throughout the United States, including Miami Dade College in the Southern District of Florida.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Pleads Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national pleaded guilty in federal court today, as his jury trial was scheduled to begin, to his role in a conspiracy to distribute large amounts of methamphetamine in southwest Missouri.
Jaime Gonzalez-Alvarado, 34, a citizen of Mexico residing in South Baja, Calif., pleaded guilty before U.S. District Judge M. Douglas Harpool to participating in a conspiracy to distribute methamphetamine in Barry County, Mo., from March 1, 2012, to Oct. 11, 2013. He also pleaded guilty to possessing methamphetamine with the intent to distribute.
Co-defendants Julio Vincente Mendoza, 33, a Mexican citizen who is a resident alien residing in Monett, Mo., Camilo Acosta, Jr., 22, of Imperial Beach, Calif., and Ernie Soto, 22, and Armando Arizpe, 24, both of Los Angeles, Calif., have pleaded guilty to their roles in the drug-trafficking conspiracy.
By pleading guilty today, Gonzalez-Alvarado admitted that he directed the delivery and then the distribution of methamphetamine, which was being delivered from California to Mendoza’s residence in Monett. This methamphetamine was then distributed by Gonzalez-Alvarado and others in the Monett area and throughout southwest Missouri.
On Oct. 11, 2013, law enforcement officers in Oklahoma seized one of these shipments of methamphetamine that was enroute to Mendoza’s residence in Monett. Officers seized 15 tape-wrapped bundles of methamphetamine weighing 14.61 kilograms.
On the same day, Missouri law enforcement officers conducted a controlled delivery of a portion of the methamphetamine to Mendoza’s residence, where they arrested Gonzalez-Alvarado and the other co-conspirators. Officers executed a search warrant and seized $57,660 found in a locked safe, $3,000 found in a downstairs bedroom, a Smith and Wesson 10mm semi-automatic handgun with 50 rounds of ammunition, packaging material consistent with the packaging of methamphetamine, approximately 3.5 grams of methamphetamine, a glass pipe commonly used to ingest methamphetamine and a drug ledger notebook which contained names, numbers, and currency amounts.
Under federal statutes, Gonzalez-Alvarado is subject to a mandatory minimum sentence of 10 years in federal prison without parole on each of the two counts. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert and Special Assistant U.S. Attorney Nhan Nguyen. It was investigated by the Drug Enforcement Administration; the Missouri State Highway Patrol; the Canada County, Okla., Sheriff’s Department; the Barry County, Mo., Sheriff’s Department; and the Barry County, Mo., Prosecuting Attorney’s Office.
Meskwaki Man Sentenced to Twenty-Five Years’ Imprisonment for Murder Committed on the Meskwaki Nation SettlementRead the Press Release
A man who committed murder on the Meskwaki Nation Settlement was sentenced today to twenty-five years in federal prison.
Jonathan Youngbear, 21, from the Meskwaki Nation Settlement, Iowa, received the prison term after a January 28, 2015, guilty plea to one count of second degree murder in “Indian Country.”
In a plea agreement, Youngbear admitted that he stabbed Severn Jefferson twice in the neck and chest with a knife. Youngbear further admitted that the victim bled to death as a result of the stab wounds. At the time he stabbed the victim, Youngbear was under the influence of alcohol and also had methamphetamine in his system.
Youngbear was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Youngbear was sentenced to twenty-five years’ imprisonment. The Court imposed a special assessment of $100 and he was ordered to make $3,026.20 in restitution to the Iowa Crime Victim compensation Program. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Youngbear is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Peter Deegan and Tony Morfitt and investigated by the Meskwaki Nation Tribal Police Department, the Tama County Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-00046.
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Maquoketa Man Pleads Guilty to Illegally Trafficking in Black Rhino HornsRead the Press Release
A man who illegally bought and transported black rhino horns from Oregon to Iowa pled guilty today in federal court in Cedar Rapids.
James Hess, 39, from Maquoketa, Iowa, was convicted of one count of violating the Lacey Act, which prohibits interstate trade in certain wildlife, including wildlife determined to be endangered under the Endangered Species Act. Black rhinos are endangered and it is illegal to traffic in their horns across state lines.
In a plea agreement, Hess, who is a taxidermist, admitted that he contacted an individual in Oregon who was trying to sell a pair of black rhino horns online. Hess reached an agreement to buy the rhino horns and told the seller that he had arranged to further sell the horns to a different person in Oregon. Hess further admitted that when meeting the seller in Oregon he gave the seller an Oregon driver’s license purporting to be for the buyer for the horns. Instead of reselling the horns in Oregon, Hess shipped the horns back to Maquoketa and then gave the horns to someone else in Iowa. Hess also admitted to receiving half of the profits this person expected to receive from a further sale of the horns.
Rhinoceros are herbivores of prehistoric origin and among the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by 178 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to 668 in 2012.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hess was released on conditions set by the Court pending sentencing. Hess faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt. The case was investigated as a part of “Operation Crash,” a continuing nationwide investigation by the Department of the Interior’s Fish and Wildlife Service to investigate and prosecute those involved in the black market trade of endangered rhino horns.
Court file information at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-41.
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Man Sentenced to Prison on Firearm Possession ConvictionsRead the Press Release
St. Thomas, USVI – On Wednesday, May 13, 2015, District Court Judge Curtis V. Gomez sentenced Joseph Roberts, Jr., 27, to a total of 39 months in prison, 32 for possession of a firearm by a convicted felon and seven for possession of a firearm within a school zone, United States Attorney Ronald W. Sharpe announced. Judge Gomez also sentenced Roberts to serve three years of supervised release.
Roberts was arrested on October 16, 2014 by officers of the Virgin Islands Police Department after he was found in possession of a firearm in the area of the Julius E. Sprauve Elementary School on St. John. Court records show that in August 2010, Roberts was convicted of unauthorized possession of a firearm, possession of a controlled substance with the intent to distribute, and reckless endangerment. On January 26, 2015, he pleaded guilty to possession of a firearm by a convicted felon and possession of a firearm within a school zone.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Lowell Defense Attorney Pleads Guilty to Trading on Insider InformationRead the Press Release
BOSTON – A Lowell defense attorney pleaded guilty yesterday in U.S. District Court in Boston in connection with his role in a conspiracy to use inside information about business activities of American Superconductor Corporation (AMSC) to profit from trading AMSC stock.
Douglas Parigian, 56, pleaded guilty to a superseding information charging him with conspiracy and securities fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Aug. 17, 2015.
Starting in or about July 2009, a friend of Parigian’s, Eric McPhail, began giving Parigian and others inside information about AMSC’s business activities and upcoming earnings announcements. McPhail obtained this information during golf matches, dinners, and other social outings with a close friend who was a senior executive at AMSC. The executive trusted McPhail to keep the information to himself and was unaware that McPhail was instead tipping his own friends. Between July 2009 and April 2011, Parigian, who knew the information was confidential and that it was improper for McPhail to disclose it, nonetheless repeatedly traded on it, making over $200,000 in illicit gains and avoided losses.
The securities fraud charge provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $5 million. The conspiracy charge provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case. The case is being prosecuted by Assistant U.S. Attorneys Andrew E. Lelling of Ortiz’s Economic Crimes Unit and Seth B. Kosto of Ortiz’s Cybercrime Unit.
Lebanon Sex Offender Indicted for Failing to RegisterRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lebanon, Mo., woman who was originally convicted of her role in a sex trafficking conspiracy was indicted by a federal grand jury today for failing to register as a sex offender.
Marilyn Bagley, 49, of Lebanon, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Bagley remains in federal custody.
Today’s indictment alleges that Bagley knowingly failed to register or update her registration between Feb. 14, 2015, and March 18, 2015.
Bagley pleaded guilty on Dec. 6, 2012, to her role in a conspiracy to commit sex trafficking in which the victim was subjected to sadistic acts of torture over a six-year time period. Bagley was sentenced to a term of probation and is required to register as a sex offender.
On April 29, 2015, the court found that Bagley violated the terms of her probation. Bagley’s probation was revoked and she was sentenced to four years in federal prison without parole.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Marshals Service.
Leader of Drug Trafficking Organization Admits Conspiring to Sell Kilograms of Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A leader of a large-scale drug trafficking organization today admitted conspiring to distribute heroin in Ocean and Monmouth counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” of Asbury Park, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with conspiring to distribute 100 grams or more of heroin.
In March 2014, 19 other alleged members of the drug trafficking organization of which Young was a leader were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Young and Robert Britt, a/k/a “True.” Of those 19 individuals, 14 have pleaded guilty.
According to documents filed in this case and statements made in court:
Between February 2013 and March 2014, Young conspired with others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO. Young was a leader of the organization and was responsible for, among other things, supplying heroin to various sub-dealers who distributed the heroin to others. To carry out Britt-Young DTO’s drug trafficking business, Young maintained several stash house locations that he and his conspirators used to package, store and sell heroin, including a recording studio in Toms River and two apartments in Neptune, New Jersey. Young was responsible for distributing between one and three kilograms of heroin during the conspiracy.
The narcotics conspiracy charge to which Young pleaded carries a maximum penalty of 40 years in prison and a $5 million fine. Sentencing is scheduled for Aug. 19, 2015.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel; officers of the Brick Township Police Department, under the direction of Chief Nils R. Bergquist: and officers of the Toms River Police Department, under the direction of Chief Mitchell Little, with the investigation. He additionally credited special agents of the Bureau of Alcohol Tobacco Firearms and Explosives, under the direction of Special Agent in Charge George P. Belsky; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; officers of the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher J. Gramiccioni; and officers of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato. He also thanked the Monmouth County Sheriff’s Office and the Neptune Township, Asbury Park, Marlboro, Long Branch and Freehold police departments for their roles in the case.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Stacy A. Biancamano Esq., West Orange, New Jersey
young_rufus_information.pdf (712.75 KB)
Lacy-Lakeview Bank Robber Sentenced to Federal PrisonRead the Press Release
In Waco today, 20-year-old Leticia Andrea Newton-Shelton was sentenced to 51 months in federal prison for bank robbery announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Walter S. Smith, Jr., ordered that Newton-Shelton pay $1,370 restitution to Extraco Bank and a $1,000 fine. Judge Smith also ordered that Newton-Shelton be placed on supervised release for five years after completing her prison term.
On March 19, 2015, Newton Shelton pleaded guilty to one count of bank robbery. By pleading guilty, she admitted that on December 29, 2014, she entered the Extraco Bank located on North Loop 340 in Lacy-Lakeview and presented a teller with a demand note which stated she was armed. Newton Shelton further admitted she was in possession of a Ruger pistol during the bank robbery.
On December 30, 2014, Hillsboro Police arrested Newton-Shelton after she was identified as a suspect in the Extraco Bank robbery.
This investigation was conducted by the Federal Bureau of Investigation (FBI) together with the Lacy-Lakeview Police Department and the Hillsboro Police Department. Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
Justice Department Settles Claims Against Leflore County, Mississippi, to Address Security and Facility Conditions at the Leflore County Juvenile Detention CenterRead the Press Release
Today, the Justice Department announced that it has reached an agreement with Leflore County, Mississippi, to improve security and facility conditions at the Leflore County Juvenile Detention Center in Greenwood, Mississippi. Leflore County committed to numerous reforms to protect children in its care from abuse and self-harm, to improve its security and emergency preparedness and to improve its medical and mental health care. Leflore County also pledged to end the use of solitary confinement as a form of discipline and to limit solitary confinement to a cool-down period not to exceed one hour.
The department investigated conditions at Leflore County Juvenile Detention Center and in March 2011 found deficiencies in numerous areas, including the use of force and restraints, abuse investigations, suicide prevention and use of solitary confinement.
The agreement was filed today in the federal district court of the Northern District of Mississippi. Upon court approval, it will require significant reforms that will enhance safety and security for children held at the detention center. The reforms concern intake and classification, use of force and restraints, behavior management, solitary confinement, suicide prevention and mental health care, medical care, due process, incident reporting, sanitation, fire safety and security staffing. In addition, the agreement contains provisions governing data gathering, quality assurance and policy revision. The agreement requires Leflore County to obtain expert assistance to meet its reform obligations. The agreement will terminate once Leflore County has achieved 12 consecutive months of substantial compliance with all of the agreement’s provisions.
“This agreement will help protect children who are in custody and ensure that they are detained under conditions that are secure, safe and appropriate,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Leflore County should be credited for embracing reform, particularly in the use of solitary confinement.”
“Leflore County and the detention center administrators are to be commended for their commitment to reforming Leflore County’s juvenile detention facility and protecting children in custody,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “The agreement will put in place reforms that will keep at-risk children safe as they prepare to return to their communities.”
The department also found violations of the Individuals with Disabilities Education Act (IDEA) in the detention center school. Because the state of Mississippi took control of the Leflore County schools in 2013, the county no longer has a role in providing education services. As a result, the agreement between the United States and Leflore does not resolve the United States’ findings of violations of children’s educational rights at the detention center. The department is working separately with the state of Mississippi to resolve the department’s concerns about education.
The Violent Crime Control and Law Enforcement Act of 1994 authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youth in juvenile justice institutions. Please visit the division’s website to learn more about this act and other laws the Civil Rights Division enforces.
This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Justice Department Files Federal Lawsuit Against Park City Business for ViolatingRead the Press Release
SALT LAKE CITY – The Justice Department’s Civil Rights Division and U.S Attorney Carlie Christensen of the District of Utah announced today the filing of a complaint in U.S. District Court in Salt Lake City against Veteran’s Trading Company (VTC), a business with headquarters in Park City, Utah.
The complaint alleges the business violated the employment rights of Naval Reserve Captain Paul M. Costello under the Uniformed Services Employment and Reemployment Rights Act (USERRA). Costello is a Navy veteran with a disability who has served his country as an F-18 fighter pilot. He has served as a member of the United States Naval Reserve since 1997.
According to the complaint, filed by the United States on Costello’s behalf, Costello’s military service was a motivating factor in VTC’s decisions to deny his request for re-employment and, ultimately, to terminate his employment. The United States claims that both actions by VTC violated Costello’s USERRA rights.
“Members of our National Guard and Reserves make many sacrifices, including spending months or years away from their jobs and families,” said U.S. Attorney Christensen. “When our service members are deployed in the service of our country, they are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations. We are filing suit today, on behalf of Captain Costello, a member of the U.S. Naval Reserve, to ensure that he does not lose his rights while he was protecting ours.”
The complaint alleges that in July 2013, VTC fired Costello from his job as company President due to his military service and subsequently denied Costello’s application for reemployment following his active military duty in September 2013. On April 30, 2015, VTC pre-emptively filed its own suit against Costello in Utah state court claiming that he was inappropriately remunerated for his service to the company while he was on military leave; despite the fact that while he was on military he took personal leave in order to preside over company meetings. In addition to filing its federal complaint, the United States removed the employer’s action from state court to federal court.
“The brave men and women who serve in our Armed Forces should never have to fear losing their job while they’re deployed overseas,” said Acting Associate Attorney General Stuart F. Delery. “That’s why the Department of Justice is committed to protecting the employment rights of service members and we will continue to devote time and resources to hold bad actors accountable.”
“Captain Costello served our nation honorably, and USERRA guarantees his right to re-employment upon his return from service,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Through the department’s newly created Service Members and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our Armed Forces.”
USERRA protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations, and proved that service members cannot be discriminated against because of their military obligations.
The lawsuit filed by the United States seeks damages equal to the amount of Costello’s lost wages and other benefits caused by VTC’s failure to comply with USERRA and a dismissal of VTC’s complaint. It also seeks an order requiring VTC to return Costello’s ownership and distribution shares and pay him all amounts that were distributed to shareholders between June 9, 2013, and the date of judgment. The lawsuit seeks an order requiring VTC to pay for all litigation fees related to the court action.
Costello initially filed a complaint with the Labor Department’s Veterans’ Employment and Training Service, which investigated this matter and, after resolution failed, referred it to the Justice Department’s Civil Rights Division, Employment Litigation Section. This lawsuit followed as a collaborative initiative between the Civil Rights Division and the U.S. Attorney’s Office for the District of Utah. The Department of Justice has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s Web sites at http://www.usdoj.gov/crt/emp and http://www.servicemembers.gov, as well as on the Labor Department’s website at http://www.dol.gov/vets/programs/userra/main.htm.
Jury Convicts KC Man, Woman of Heroin Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man and woman have been convicted by a federal trial jury of their roles in a conspiracy to distribute heroin and of illegally possessing firearms and ammunition.
Robin M. Sims, also known as Robin Hood, 51, and Amy E. Jones, 52, both of Kansas City, were found guilty on Tuesday, May 12, 2015, of participating in a conspiracy to distribute heroin between June 2012 and June 2013 and of aiding and abetting one another to distribute heroin. In addition, Sims was convicted of five counts of distributing heroin and one count of being a felon in possession of a firearm and ammunition. Jones was also convicted of being an unlawful drug user in possession of a firearm.
Evidence introduced during the trial included a series of undercover and controlled purchases of heroin from Sims, often utilizing a confidential informant. Police officers conducted three searches at two separate residences shared by Sims and Jones and seized heroin and firearms.
On Aug. 30, 2012, during an investigation, Kansas City police officers searched a residence shared by Sims and Jones and found a Colt .32-caliber pistol under the mattress of a bed.
On Nov. 12, 2012, officers executed a search warrant at the residence shared by Sims and Jones and discovered heroin wrapped in a lottery ticket and a digital scale in the kitchen.
On June 20, 2013, officers executed a search warrant at the residence shared by Sims and Jones. When officers entered the residence, Sims placed a plastic baggie that contained what appeared to be heroin in his mouth and swallowed it. Officers discovered a loaded Davis Industries .22-caliber revolver under a bed.
Under federal statutes, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sims has a prior felony conviction for second degree murder, two prior felony convictions for drug trafficking, two prior felony convictions for possessing a controlled substance and a prior felony conviction for distributing, delivering and producing a controlled substance.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour before returning the guilty verdicts to U.S. District Judge Dean Whipple, ending a trial that began Monday, May 11, 2015.
Under federal statutes, Sims is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. Jones is subject to a sentence of up to 50 years in federal prison without parole. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Judge Sentences Pittsburgh Felon to 8 Years in Prison for Illegally Possessing PistolRead the Press Release
PITTSBURGH - A local man pleaded guilty and was sentenced in federal court to eight years imprisonment on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Mark A. Brazil, 49, of Pittsburgh, Pa., pleaded guilty to one count and was sentenced before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that Brazil admitted in recorded conversations that he put firearms in his wife’s name because he was a convicted felon who could not lawfully possess firearms. Brazil specifically mentioned a .40 caliber Springfield pistol as a firearm he favored and described the unique way he loaded the magazine. During the execution of a search warrant at Brazil’s home on Oct. 16, 2013, a loaded Springdale .40 caliber pistol was found in Brazil’s bed in the master bedroom. The gun was loaded in the manner Brazil had earlier described.
Judge Diamond noted Brazil’s extensive criminal history in imposing sentence.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County Police, with the assistance of the Pittsburgh Bureau of Police, conducted the investigation that led to the prosecution of Brazil.
Indiana Man Sentenced to 240 Years Imprisonment for Production, Possession and Distribution of Child PornographyRead the Press Release
Daniel T. Eckstrom, 32, of Lake Station, Indiana, was sentenced to 240 years of imprisonment followed by lifetime supervised release for his nine criminal convictions for production, distribution and possession of child pornography, announced U.S. Attorney David Capp for the Northern District of Indiana.
According to documents filed in the case, on Jan. 17, 2014, Eckstrom pleaded guilty to seven charges of producing child pornography, one charge of distributing child pornography and one charge of possessing child pornography.
The production of child pornography charges were based on Eckstrom’s capturing of thousands of images and hundreds of videos depicting three minor female victims under the age of 12 being caused to engage in sexually explicit conduct. One victim was sexually abused by Eckstrom over a period of five years. The court found that Eckstrom had used force to cause her to engage in sexual acts and also used threats of violence. Based on the evidence of child pornography production presented at sentencing, the court concluded that Eckstrom was a repeat and dangerous sex offender and sentenced him to consecutive terms of 30 years on each of the seven production of child pornography charges.
On the distribution of child pornography charge, the evidence presented at sentencing established that Eckstrom distributed depictions of two of his victims to others. As a result, over 600 depictions of one victim have been found in seven investigations in six different U.S. states and over 10,000 depictions of another have been found in 77 investigations in 29 different states. Eckstrom received a 20 year sentence for his distribution of child pornography charge and another 10 years for possession of child pornography, both consecutive to each other and consecutive to the production charges.
The investigation in this case began when Homeland Security Investigations (HSI) out of Salt Lake City, Utah, located an individual suspected of producing child pornography in Sandy, Utah and distributing the material via an email account. Upon further investigation, that target was found to be trading depictions, including depictions produced by Eckstrom, with another target out of Syracuse, New York. When the material was sent to the National Center for Missing and Exploited Children, an investigator with that agency helped identify Eckstrom. Once Eckstrom was located in northwest Indiana, local agents with HSI obtained a federal warrant to search his residence.
This case was a culmination of the great work that can be accomplished from outstanding coordination between various law enforcement agencies around the country to identify and bring serial child sexual abusers to justice.
This case was investigated by the U.S. Department of Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Jill R. Koster.
Greenwich Woman Admits Embezzling $176K from EmployerRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHELLE CRAWFORD, 33, of Greenwich, waived her right to indictment and pleaded guilty today in Hartford federal court to one count of wire fraud stemming from her embezzlement of more than $176,000 from her employer.
According to court documents and statements made in court, CRAWFORD worked as the office manager for the New England Oil Company (“NEOC”) located in Greenwich. In her capacity as the office manager, CRAWFORD had access to the bank accounts, credit cards and payment system of NEOC. Between May 2011 and May 2014, CRAWFORD embezzled approximately $176,735 from NEOC by making unauthorized withdrawals and by using company funds to pay personal expenses while disguising them in company records as legitimate NEOC expenses.
CRAWFORD is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 29, 2015, at which time she faces a maximum term of imprisonment of 20 years.
This investigation was conducted by the U.S. Secret Service, the Greenwich Police Department and the Connecticut Financial Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Glen Hazel Woman Charged with Using $70K in Benefits Intended to Support Her ChildrenRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of theft of government property and false statements to retain Supplemental Security Income Benefits, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on May 12, named Taisha Teresa Elmore, 35.
According to indictment, Elmore converted to her own use more than $70,000 of Supplemental Security Income Benefits (SSI) that were intended for her minor children. She also made false statements to the Social Security Administration by indicating that certain minor children were living with her when they were not and that she was using SSI benefits for their care and support when she was not.
The law provides for a maximum total sentence of up to 10 years in prison as to Count One and up to five years in prison as to Counts Two and Three, as well as a fine of up to $250,000 on each count, or both imprisonment and a fine. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Social Security Administration, Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.