Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
13 May 2015
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.
# # #
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.
Follow us on Twitter @USAO_NDIA.
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.
Follow us on Twitter @USAO_NDIA.
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.
Former federal bureau of prisons employee sentenced in federal court for sex crimeRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that United States District Judge Irene C. Berger sentenced a former Federal Bureau of Prisons employee to 14 months in federal prison for abusive sexual contact involving a ward. Richard Canterbury, 50, of Lewisburg, West Virginia pled guilty in January of 2015, admitting that in April of 2014, he touched the breasts of a female inmate at the Federal Prison Camp at Alderson while he was overseeing her work. Judge Berger also ordered that following his release from prison Canterbury will be on supervised release for five years and he must register as a sex offender.
This case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Assistant United States Attorney John File handled the prosecution.
Former Outlaw Motorcycle Gang Member Indicted in Federal Court - Faces Life in PrisonRead the Press Release
United States Attorney James L. Santelle, announced that on May 12, 2015, a grand jury sitting in the Eastern District of Wisconsin returned a second superseding indictment, charging Randy M. Yager, aka “Mad,” 59, originally from Crown Point, Indiana, with Racketeering and Racketeering Conspiracy, in violation of Title 18, United States Code, Section 1962(c) and (d).
The indictment alleges that as a member and regional boss of the Outlaws Motorcycle Club during the 1990s, Yager participated in acts of murder and arson. The eight underlying racketeering acts charge offenses that include three homicides and the use of explosives, all directed at members of rival motorcycle gangs as part of the Outlaws’ efforts to exert and maintain territorial control.
Yager was originally charged with sixteen co-defendants in an indictment that was unsealed on June 10, 1997. At that time, Yager became a fugitive. He remained a fugitive, and one of the United States Marshal’s “most wanted,” until October 2014 when he was arrested in Baja, Mexico, where he was living under an assumed name. The cases of Yager’s co-defendants have long been resolved. If convicted, Yager faces up to life in prison.
The case was investigated by a federal task force headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant United States Attorneys Carol L. Kraft, Scott J. Campbell and Laura S. Kwaterski.
# # # # #
Former Orleans Parish School Board Member Ira Thomas Pleads Guilty to Conspiracy to Commit Federal Bribery and Honest Services Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that IRA THOMAS, 56, of New Orleans and former member of the Orleans Parish School Board (“OPSB”), pled guilty today to charges of conspiracy to commit bribery and honest services wire fraud.
THOMAS admitted that beginning in September 2013 and continuing until January 2015, he and others participated in a conspiracy to commit bribery and honest services wire fraud. THOMAS admitted that, in his role as an Orleans Parish School Board Member, he engaged in a scheme to defraud Orleans Parish and its citizens of his honest services through bribery and a kickback scheme, whereby THOMAS used his public office and official capacity to provide favorable treatment, including attempting to facilitate the awarding of a contract, that was designed to benefit the business and financial interest of an individual who provided him with a bribe and kickback in the form of cash payment disguised as a campaign contribution.
According to court documents, in September 2013 a cooperating witness (“CW”) was approached by an OPSB employee, who offered the CW a janitorial services contract that would soon be up for bid by the OPSB in exchange for a monetary payoff. During the fall of 2013, the CW, THOMAS, the OPSB employee, and at times another private citizen, met to discuss this contract. These conversations were recorded by the CW with the assistance of the FBI. Ultimately, it was decided that the CW would pay $5,000 to THOMAS in the form of a “campaign contribution” in exchange for THOMAS’ and the OPSB employee’s assistance regarding the janitorial services contract. In December 2013, the CW delivered $5,000 in cash to the private citizen acting as a conduit for THOMAS, which was video recorded. This money was then delivered to THOMAS. During the fall of 2014, THOMAS and the OPSB employee discussed over recorded telephone conversations how to alter the bid process so that the CW would be given an improper advantage in bidding for the janitorial services contract, which was valued over $5,000.
THOMAS faces statutory penalties of up to five years in prison, a $250,000 fine and three years of supervised release. U.S. District Judge Susie Morgan set sentencing on August 12, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter and thanked the Metropolitan Crime Commission for their assistance. Assistant U.S. Attorney Sean Toomey is in charge of the prosecution.
Ira Thomas Factual Basis.pdf (14.86 KB)
Former Gloversville Husband and Wife Sentenced for Social Security FraudRead the Press Release
ALBANY, NEW YORK – Scott J. Bornt, age 53, and his wife Geri Mondlin-Bornt, age 50, of Hillsborough, NJ, formerly of Gloversville, NY, each were sentenced yesterday in Albany for Social Security Fraud before Senior United States District Court Judge Thomas J. McAvoy, announced United States Attorney Richard S. Hartunian and Special Agent in Charge Edward J. Ryan of the Social Security Administration, Office of Inspector General, Office of Investigations, New York Field Division.
Scott J. Bornt was sentenced to 18 months in prison and three years supervised release. The court ordered that he pay $314,650 restitution to the United States Social Security Administration.
Geri Mondlin-Bornt was sentenced to three years of probation. The court ordered that she pay $88,120 restitution to the United States Social Security Administration.
As part of their respective guilty pleas, Bornt and Mondlin-Bornt admitted that they each made false statements to Social Security Administration personnel to obtain Social Security Disability Insurance benefits payments to which they were not entitled. The amounts were $314, 650, over six years for Bornt and $88,120, over seven years for Mondlin-Bornt.
Bornt and Mondlin-Bornt admitted that they jointly owned and operated a business, GMB Trucking, and concealed the extent of their involvement with the business from the Social Security Administration. Bornt concealed income and the fact that he was the sole driver for the trucking business, and Mondlin-Bornt underreported and concealed income she received from the business.
The case was investigated by the Social Security Administration, Office of Inspector General, with the assistance of the United States Secret Service. The case was prosecuted by Assistant United States Attorney Edward P. Grogan.
Former Buffalo Man Indicted for Tax Evasion, Failure to File ReturnsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Buffalo, Mo., man has been indicted by a federal grand jury for tax evasion and for failing to file tax returns.
Ronald Allen Downey, 56, formerly of Buffalo, was charged in a four-count indictment returned under seal by a federal grand jury in Springfield on April 2, 2015. That indictment has been unsealed and made public following Downey’s arrest in Hawaii and initial court appearance today in the U.S. District Court in Springfield. Downey was released on bond.
Downey worked as an alternative healer and teacher in his company, Downey Life Transformation Center.
Today’s indictment alleges that in 2008 Downey received $818,386 in gross income, of which at least $79,343 constituted taxable income. Downey did not file an income tax return, the indictment says, but attempted to evade paying taxes by using bank accounts that were opened with false Social Security numbers and by fraudulently using the credit card merchant account of another person to process commercial transactions.
The federal indictment also charges Downey with three counts of failing to file a federal income tax return. According to the indictment, Downey received gross income of $254,743 in 2009, $101,206 in 2010 and $69,423 in 2011. Downey allegedly failed to file an income tax return for each of those years.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Timothy A. Garrison. It was investigated by IRS-Criminal Investigation.
FnD Gang Member Pleads Guilty to Racketeering and Narcotics ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JEREMIAH JACKSON, a/k/a “Rocky,” age 24, of New Orleans, pled guilty today in the racketeering conspiracy case involving the Frenchmen/Derbingy gang, or “FnD.”
According to court documents, JACKSON pled guilty to four counts of the Third Superseding Indictment, including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, conspiracy to possess firearms in furtherance of a drug trafficking conspiracy, and assault with a dangerous weapon in furtherance of a racketeering enterprise.
JACKSON faces a maximum life imprisonment for the RICO violation, a mandatory minimum of 20 years to life imprisonment on the drug conspiracy charge, and a maximum of 20 years as to each charge of conspiracy to possess firearms in furtherance of a drug trafficking conspiracy and assault with a dangerous weapon in furtherance of a drug trafficking conspiracy.
According to court documents, FnD constituted a racketeering “enterprise” under federal law. JACKSON, as a member of this enterprise, conspired to commit numerous overt acts in furtherance of this enterprise. These acts included the distribution of illegal narcotics, such as heroin and crack cocaine, as well as crimes of violence, including assault with firearms. JACKSON admitted to the shooting of an individual who was sitting in his car on April 16, 2011, on the 2000 block of Prieur Street in New Orleans. The victim was shot in the stomach by JACKSON because he resembled a rival drug dealer. The New Orleans Police Department Crime Lab matched casings found at the scene to a gun that was found in JACKSON’s possession on July 19, 2011.
Three other defendants previously pled guilty in the course of this prosecution: CRYSTAL SCOTT, RICHMOND SMITH, and GRALEN BENSON. The grand jury subsequently returned a superseding indictment charging the remaining defendants with RICO conspiracy, among other charges. JACKSON is the first defendant to have pled guilty to RICO conspiracy.
Five defendants remain in this case: TRAVIS SCOTT, STANLEY SCOTT, SHAWN SCOTT, AKEIN SCOTT, and BRIAN BENSON. U.S. District Judge Ivan L.R. Lemelle scheduled those defendants for trial on July 13, 2015.
The indictment is a product of an ongoing investigation into the violent acts in furtherance of drug trafficking by the FnD gang. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Orleans Parish District Attorney’s Office, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and officers of the New Orleans Police Department. Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.
Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office, are in charge of the prosecution.
Jeremiah Jackson Factual Basis.pdf (4.47 MB)
Five Sex Traffickers Sentenced for Pimping 14-Year-Old GirlsRead the Press Release
ATLANTA – Fabian Terran Murray, a/k/a “Shooter,”--one of five men charged in two related cases involving the pimping of three 14-year-old girls and a 16-year-old girl at hotels in Atlanta, Georgia, and elsewhere-- was sentenced to 17 years, nine months in federal prison. This sentencing brings to a close the prosecution of the two sex-trafficking conspiracies.
Defendants Joshua Thomas Hill, also known as “Cash,” Clinton Saintvil, Richard Douglas King, also known as “Ready,” and Jonathan Branch, were previously sentenced on July 10, 2014, July 14, 2014, and August 1, 2014.
“These men pimped girls as young as 14 years old, who they knew to be runaways and especially vulnerable,” said Acting U.S. Attorney John Horn. “The coordinated efforts of federal and local law enforcement officers, together with the courage of these young trafficking survivors, rescued four teenage girls from the horrific victimization cycle and restored them to safety.”
"The sentencing of Fabian “Shooter” Murray continues to mark the successful collaboration of Atlanta area law enforcement in aggressively addressing the juvenile sex industry as well as the trafficking of these juveniles in support of that industry,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “The FBI led Metro Atlanta Child Exploitation (MATCH) Task Force, consisting of experienced law enforcement officers and agents working together across many jurisdictional boundaries, credits its many successful investigations and resulting prosecutions through not only the sharing of information but by also combining resources and assets. The defendants in these cases represent not only the successes of this task force but also the need for it.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: The defendants were indicted in two related cases on charges of conspiracy to commit and commission of sex trafficking of a minor. The investigation that led to these indictments is described as follows:
U.S. v. Hill, Murray, and Saintvil
On February 19, 2012, Hill, Murray, and Saintvil met two 14-year-old girls, A.C. and O.M., at a park in Marietta, Georgia. The girls told the men that they were runaways. Hill, Murray, and Saintvil drove the girls to a nearby convenience store where they purchased condoms. When Hill and Murray entered the store, Saintvil told the girls that they would be working for the defendants as prostitutes. After leaving the convenience store, the men drove the girls to an extended stay hotel. Hill and Murray caused A.C. and O.M. to commit commercial sex acts at various hotels in the Atlanta metro area, soliciting clients for the girls on the website “Backpage Atlanta.” Saintvil drove the girls to the various locations where they engaged in commercial sex acts. On one occasion, Hill and Saintvil drove A.C. and O.M. to meet a male client at a high-rise condominium in Midtown Atlanta. Cobb County, Georgia, Police Department officers discovered the girls on February 22, 2012, during a search of a hotel room.
During this same time, Hill and Saintvil also caused a third 14-year-old girl, M.Q., to engage in prostitution. Sometime in or about February 2012, Hill engaged in sex acts with the girl, after which he told her that she would be committing commercial sex acts for Hill. Saintvil transported Hill and the girl to various hotels where Hill caused her to engage in prostitution. Marietta, Georgia, Police Department officers found the girl with Hill on February 10, 2012, at a local motel.
U.S. v. Murray, King, and Branch
Additionally, Murray, King, and Branch engaged in conspiracy to commit, and commission of, sex trafficking of J.B., a 16-year-old girl, who the defendants knew was a runaway from New York. On or about June 30, 2012, Cobb County Police Department officers received a call from J.B., who reported that she was being held against her will. An FBI Special Agent and a detective with the Cobb County Crimes Against Children Unit immediately met with the girl, who told the investigators that she met Murray and King in May 2012. Murray took the girl to an apartment and soon after began, with King, to cause her to engage in prostitution at truck stops on Fulton Industrial Boulevard, and at various motels, in Atlanta. The men used the website “Backpage Atlanta” to solicit clients for the girl. Branch drove J.B. to the various locations where Murray and King trafficked her.
Sentences Imposed
- Murray, 27, of Tifton, Georgia, pleaded guilty on April 18, 2014, to conspiracy to commit, and commission of, sex trafficking of a minor and was sentenced by United States District Judge William S. Duffey, Jr. to 17 years, nine months in federal prison, followed by five years of supervised release.
- Branch, 24, of Atlanta, Georgia, pleaded guilty on October 13, 2013, to conspiracy to commit sex trafficking of a minor and was sentenced to five years, ten months in federal prison, followed by five years of supervised release.
- Saintvil, 27, of Miami, Florida, pleaded guilty on February 2, 2014, to conspiracy to commit sex trafficking of a minor and was sentenced to six years, six months in federal prison, followed by five years of supervised release.
- Hill, 27, of Atlanta, Georgia, also pleaded guilty on April 18, 2014, to conspiracy to commit sex trafficking of a minor and was sentenced to 16 years in federal prison, followed by five years of supervised release.
- King, 27, of Atlanta, Georgia, pleaded guilty on April 29, 2014, to sex trafficking of a minor and was sentenced to 14 years in federal prison, followed by 5 years of supervised release.
All the defendants must register as sex offenders as a condition of their supervised release. In addition, Murray, Hill, and Saintvil must pay restitution of $1,000 to minors O.M. and A.C.; Hill and Saintvil must pay restitution of $3,000 to minor M.Q.; and Murray, King, and Branch must pay restitution of $1,000 to minor J.B.
This case was investigated by the Federal Bureau of Investigation’s Metro Atlanta Child Exploitation Task Force with assistance from the Cobb County Police Department’s Crimes Against Children Unit, the Marietta Police Department, and the Cobb County District Attorney’s Office.
Assistant United States Attorneys Richard S. Moultrie, Jr. and Phyllis Clerk prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Five Individuals Charged in Nationwide Identity Theft SchemeRead the Press Release
Conspirators Obtain Identity Information of 125,000 Taxpayers and Submit Alleged False Federal Income Tax Returns Seeking $6.6 Million in Refunds from Internal Revenue Service
Federal law enforcement agents arrested four individuals in conjunction with a series of search and arrest warrants executed in Maryland and Georgia based on a federal grand jury indictment in the District of Oregon that was unsealed today.
The individuals arrested were:
-
Lateef Aina Animawun, 34, of Smyrna, Georgia;
-
Oluwatobi Rueben Dehinbo, 30, of Marietta, Georgia;
-
Oluwaseunara Temitope Osanyinbi, 34, of Marietta; and
-
Oluwamuyiwa Abolad Olawoye, 28, of Marietta.
A warrant has been issued for the arrest of a fifth defendant, Emmanuel Oluwatosin Kazeem, of Maryland. The remaining four defendants have made an initial appearance in Georgia, and will be arraigned in the District of Oregon at a date to be set by the court.
The indictment alleges that, beginning at least as early as tax year 2012, the named defendants, along with others, engaged in an identity theft conspiracy in Oregon and elsewhere that involved a scheme to obtain millions of dollars in fraudulent tax refunds from the Internal Revenue Service (IRS) and the Oregon Department of Revenue. The allegations of the indictment detail how the conspirators spun a complex web of fraud involving the use of stolen personal identifying information (PII), falsified wage and withholding information, fraudulently generated electronic filing PINs, disposable email addresses to conceal the co-conspirators’ identities, and the receipt of fraudulent tax refunds through prepaid debit cards and third party bank accounts.
“Attacking identity theft is among our highest priorities,” said Acting U.S. Attorney Billy J. Williams of the District of Oregon. “Those who unlawfully obtain personal identifying information wreak havoc on the lives of innocent taxpayers and will be held fully accountable.”
In total, the defendants are alleged to have unlawfully obtained the identity information from a data breach of over 125,000 taxpayers and filed over 980 false federal tax returns seeking over $6.6 million in fraudulent refunds. Although the IRS rejected $4.6 million of the claimed refunds, the indictment alleges that the defendants successfully obtained $2 million in illegal refunds.
“IRS Criminal Investigations Division is sworn to protect the tax system and bring to justice those who would steal from the Treasury,” said Assistant Special Agent in Charge Thomas Gutierrez of IRS-Criminal Investigation. “Would-be criminals should know: we’ve made identity theft related refund fraud our top priority. We understand that in these types of cases, the government is not the only victim. Identity theft can have a catastrophic emotional and financial impact on its victims. Our agents are determined to keep up the fight to eradicate identity theft and protect the honest taxpayers who would otherwise personally shoulder the immense burden of this crime.”
The indictment, which may be viewed here, charges each defendant with one count of conspiracy to commit mail and wire fraud, seven counts of mail fraud, six counts of wire fraud and thirteen counts of aggravated identity theft. The fraud and conspiracy charges are each punishable by up to 30 years in federal prison and a fine of up to $1 million. If convicted of the aggravated identity theft charges, the defendants face a mandatory minimum penalty of two years in federal prison for each count of conviction. An indictment is only an allegation of a crime. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services-Office of Inspector General, and the FBI, with support provided by U.S. Immigration and Customs Enforcement, U.S. Postal Inspection Service, the U.S. State Department and the Oregon Department of Revenue Fraud Unit. This case is being prosecuted by Assistant U.S. Attorneys Byron Chatfield and Nancy Olson of the District of Oregon.
Taxpayers are reminded to be vigilant in the protection of their personal identifying information. Anyone interested in more information on preventing or reporting suspected identity theft should review the IRS website.
-
Five Essex County Men Charged in Heroin Distribution RingRead the Press Release
NEWARK, N.J. – Five Essex County, New Jersey, men were arraigned today on charges they ran an illegal drug mill that distributed at least one kilogram of heroin, U.S. Attorney Paul Fishman announced.
On April 28, 2015, a federal grand jury in Newark indicted each of the following defendants with one count of distributing and possessing with intent to distribute, and one count of conspiring to distribute, one kilogram or more of a mixture and substance containing heroin:
a. Lateef Grimsley, 25, of Newark, previously arrested and charged by complaint on Nov. 13, 2013.
b. Daquwann Walker, 24, of Newark, previously arrested and charged by complaint on Nov. 15, 2013.
c. Rassol China, 33, of Newark, previously arrested and charged by complaint on Nov. 22, 2013.
d. Bryant Rudd, 26, of Newark, previously arrested and charged by complaint on Feb. 11, 2014.
e. Shakur Billinghurst, 21, of Newark, previously arrested and charged by complaint on April 6, 2015.
The defendants were arraigned today before U.S. District Judge Jose L. Linares in Newark federal court.
According to the indictment, other documents filed in this case, and statements made in court:
During a drug trafficking investigation, special agents of the U.S. Drug Enforcement Administration (DEA) obtained information that the third-floor apartment of a building located in Newark was being used as a heroin mill. DEA special agents seized from the heroin mill more than one kilogram of heroin and a variety of drug paraphernalia and packaging materials.
Each of the two counts with which the defendants are charged carries a mandatory minimum term of 10 years in prison and a maximum term of life, and a $10 million fine.
U.S. Attorney Fishman credited special agents of DEA, under the direction of Special Agent in Charge Special Agent in Charge Carl Kotowski in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Barry A. Kamar of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel:
Grimsley: Angelo Servidio Esq., Nutley, N.J.
Walker: David A. Holman AFPD, Newark
China: Peter R. Willis Esq., Jersey City, N.J.
Rudd: Vincent J. Lapaglia Esq., Hoboken, N.J.
Billinghurst: Bruce S. Rosen Esq., Florham Park, N.J.
grimsley_lateef_et_al._indictment.pdf (195.55 KB)
Five Charged in Nationwide Identity Theft SchemeRead the Press Release
MEDFORD, Ore. - Federal law enforcement agents arrested four individuals in conjunction with a series of search and arrest warrants executed in Maryland and Georgia based on an Oregon federal grand jury indictment unsealed today.
The individuals arrested were:
- Lateef Aina Animawun, 34, of Smyrna, Georgia;
- Oluwatobi Rueben Dehinbo, 30, of Marietta, Georgia;
- Oluwaseunara Temitope Osanyinbi, 34, of Marietta, Georgia; and
- Oluwamuyiwa Abolad Olawoye, 28, of Marietta, Georgia.
A warrant has been issued for the arrest of a fifth defendant, Emmanuel Oluwatosin Kazeem of Maryland. The remaining four defendants have made an initial appearance in Georgia, and will be arraigned in the District of Oregon at a date to be set by the Court.
The indictment alleges that, beginning at least as early as tax year 2012, the named defendants, along with others, engaged in an identity theft conspiracy, in Oregon and elsewhere, involving a scheme to obtain millions of dollars in fraudulent tax refunds from the IRS and the Oregon Department of Revenue. The allegations of the indictment detail how the conspirators spun a complex web of fraud involving the use of stolen personal identifying information (PII), falsified wage and withholding information, fraudulently generated electronic filing PINs, disposable email addresses to conceal the co-conspirators’ identities, and the receipt of fraudulent tax refunds through prepaid debit cards and third party bank accounts. “Attacking identity theft is among our highest priorities. Those who unlawfully obtain personal identifying information wreak havoc on the lives of innocent taxpayers and will be held fully accountable,” said Acting U.S. Attorney Billy J. Williams.
In total, defendants are alleged to have unlawfully obtained the identity information from a data breach of over 125,000 taxpayers and filed over 980 false federal tax returns seeking over $6.6 million in fraudulent refunds. Although the IRS rejected $4.6 million of the claimed refunds, the indictment alleges that the defendants successfully obtained $2 million in illegal refunds. “IRS Criminal Investigations Division is sworn to protect the tax system and bring to justice those who would steal from the Treasury. Would-be criminals should know: we’ve made identity theft related refund fraud our top priority,” stated Assistant Special Agent in Charge Thomas Gutierrez of IRS Criminal Investigation. “We understand that in these types of cases, the government is not the only victim. Identity theft can have a catastrophic emotional and financial impact on its victims. Our agents are determined to keep up the fight to eradicate identity theft and protect the honest taxpayers who would otherwise personally shoulder the immense burden of this crime.”
The indictment, which may be viewed here "kazeem_et_al_indictment.pdf", charges each defendant with one count of conspiracy to commit mail and wire fraud; seven counts of mail fraud; six counts of wire fraud; and thirteen counts of aggravated identity theft. The fraud and conspiracy charges are each punishable by up to 30 years in federal prison and a fine of up to $1 million. If convicted of the aggravated identity theft charges, defendants face a mandatory minimum penalty of two years in federal prison for each count of conviction. An indictment is only an allegation of a crime. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case results from a joint investigation by IRS-Criminal Investigations Division, the U.S. Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation, with support provided by U.S. Immigration and Customs Enforcement, United States Postal Inspection Service, the U.S. State Department, and the Oregon Department of Revenue Fraud Unit. This case is being prosecuted by District of Oregon Assistant U.S. Attorneys Byron Chatfield and Nancy Olson.
Taxpayers are reminded to be vigilant in the protection of their personal identifying information. Anyone interested in more information on preventing or reporting suspected identity theft should review the IRS’s website at http://www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft.
Federal jury convicts physician's assistant for witness tamperingRead the Press Release
P.A. Was Employed by the Federal Bureau of Prisons
Beckley, W.Va. – United States Attorney Booth Goodwin announced that defendant Scotty Rose was convicted yesterday after a two-day jury trial in federal court in Beckley, West Virginia. Rose was convicted of tampering with a federal witness. Rose, 41, from Beckley worked in the Federal Correctional Institution in Beckley as a physician’s assistant. On February 6, 2013, Rose disclosed to an inmate that another inmate was wearing a wire and working for the FBI as an informant. The informant identified by Rose was, in fact, working with the FBI on a large scale methamphetamine trafficking investigation, and was wearing a recording device to further the investigation. News of the inmate informant spread quickly throughout the correctional facility, which placed the informant at risk. As a result, the informant was moved from the from the facility for his own safety, and the FBI investigation of the methamphetamine trafficking ring was abruptly terminated.
Rose faces up to three years in prison for witness tampering when he is sentenced on August 13, 2015. The Honorable Irene Berger presided over the trial.
The investigation was conducted by the Federal Bureau of Investigation, assisted by Bureau of Prison Investigators. Assistant United States Attorneys Erik S. Goes and Timothy Boggess were responsible for the prosecution.
El Paso Man Pleads Guilty to Robbing Midland BankRead the Press Release
In Midland this afternoon, 28–year-old Fabian Barrios of El Paso, TX, faces up to 20 years in federal prison after pleading guilty to robbing a bank in Midland announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Appearing before United States Magistrate Judge David Counts, Barrios pleaded guilty to one count of bank robbery. By pleading guilty Barrios admitted that on February 10, 2015, he robbed the Citibank, located at 1100 Andrews Highway in Midland. According to court records, Barrios and his accomplice, Alan Montes, approached a teller, displayed a weapon and demanded money. The teller complied and handed the men an undisclosed amount of money.
Co-defendant Alan Montes, also of El Paso, pleaded guilty on April 14, 2015, to the bank robbery charge. Both defendants remain in custody pending sentencing scheduled for June 24, 2015, before United States District Judge Robert Junell in Midland.
This case resulted from a joint investigation by the Federal Bureau of Investigation, Customs and Border Protection, the Texas Department of Public Safety in El Paso and the Midland Police Department. This case is being prosecuted by Assistant U.S. Attorney Austin Berry on behalf of the Government.
Dubuque Man Sentenced for Wire Fraud and Filing False Tax ReturnsRead the Press Release
A former Controller of a Dubuque company, who embezzled more $360,000, was sentenced on Monday, May 11, 2015, to more than two years in federal prison.
Michael Schute, age 51, from Dubuque, Iowa, received the prison term after a February 6, 2015 guilty plea to one count of wire fraud and one count of filing false tax returns.
In a plea agreement and at the sentencing hearing, Schute admitted he embezzled more than $365,000 from a privately-owned company between 2008 until he was fired in April 2013. Schute embezzled the money by writing checks on the company bank account to pay personal credit cards and other bills. Schute then concealed this conduct by falsifying the company books to make it appear the funds were expended on company debts. When filing his tax returns for the tax years 2008 through 2013, Schute falsely concealed the funds he received from the embezzlement for his own personal use. Illegal income is taxable. Schute owes more than $86,000 in taxes on the illegal income.
Schute was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Schute was sentenced to 33 months’ imprisonment. A special assessment of $200 was imposed, and he was ordered to make $306,848.56 in restitution to the company and its insurance company (Schute had previously paid back more than $56,000 in restitution to the victim company). Schute must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Schute was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the Internal Revenue Service and the Dubuque Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-1003.
Follow us on Twitter @USAO_NDIA.
Drexel Hill Man Charged with Massive Fraud SchemeRead the Press Release
PHILADELPHIA - David Fili, Jr., 45 of Drexel Hill, Pennsylvania, was charged today by information with 10 counts of wire fraud and two counts of bank fraud in a $9.7 million scheme, announced United States Attorney Zane David Memeger.
From 2005 to March 2013, Fili was co-owner of Capital Financial Mortgage Corporation (“CFMC”), based in Delaware County, Pennsylvania. According to the information, during that time, Fili defrauded numerous lenders into purchasing mortgages issued by CFMC that were represented as first mortgages but that were, in reality, worthless second mortgages. He also allegedly defrauded other lenders who loaned money to CFMC on a warehouse line of credit. The information alleges that Fili helped defraud lenders out of approximately $9.7 million, some of which Fili used to pay his own mortgage on a vacation home and for extensive casino and sports gambling.
If convicted, Fili faces a potential advisory sentencing guideline range of 78 months to 135 months in prison, a five-year period of supervised release, full restitution, a fine of up to $10.5 million, and a $1,200 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Department of Housing and Urban Development, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
District of Columbia Man Sentenced to Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
Worked With Others to Seek More Than $1.1 Million in Fraudulent Refunds
A 32-year-old Washington, D.C., man was sentenced today to serve more than three years in prison for various crimes he committed in a far-reaching identity theft and tax fraud scheme in which he and others filed fraudulent federal income tax returns seeking more than $1.1 million in refunds, the Justice Department announced.
James Nelson is among approximately 12 people who have pleaded guilty in the U.S. District Court for the District of Columbia to charges in one of the largest prosecutions to date involving the use of stolen identifying information. The overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $40 million.
The sentencing was announced by Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C. Field Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C. Division, Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of Treasury and Acting Special Agent in Charge James M. Murray of the U.S. Secret Service’s Washington, D.C. Field Office.
Nelson pleaded guilty on Jan. 29 to conspiracy to defraud the United States with respect to claims, aiding and abetting in the making of false claims for refund and aiding and abetting in fraud and related activity involving identification information. He was sentenced to serve 41 months in prison by the Honorable U.S. District Judge Ellen S. Huvelle of the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release. In addition, as part of his plea agreement, Nelson must pay $636,026 in restitution to the IRS.
“One of the Tax Division’s highest priorities is prosecuting individuals who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “As in this case, this street crime often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and use all available tools to prosecute these offenders to the fullest extent of the law.”
“This criminal was part of a brazen scheme to flood the IRS with thousands of fake income tax returns and steal from honest taxpayers,” said Acting U.S. Attorney Cohen. “These thieves filed bogus tax returns with the stolen identities of people in nursing homes and prisons to generate fraudulent refunds. James Nelson is now headed to a federal penitentiary where he can no longer execute scams that drive up taxes on hardworking Americans who play by the rules.”
“Nelson’s greed will have a long-term impact on his victims and cause immeasurable harm to their financial well-being,” said IRS-CI Special Agent in Charge Kelly. “The selfish acts of criminals like Nelson have far-reaching consequences, and those like him, who steal from innocent victims and the U.S. Treasury, should be on notice that the government will aggressively pursue identity thieves and tax cheaters.”
“Today’s sentencing confirms that anyone who preys on citizens’ identification for financial gain, especially when they use the U.S. Mail to further their criminal activity, will be held accountable,” said Acting Postal Inspector in McGinnis. “The Postal Inspection Service values the collaboration with its law enforcement partners in the case.”
“This sentencing reinforces the commitment of Treasury’s Office of Inspector General and its law enforcement partners to pursue criminal charges against individuals and groups that prey on the public by stealing identities and fleecing the U.S. taxpayer and Treasury Department in their criminal schemes,” said Assistant Inspector General Phillips.
“The arrest of James Nelson is yet another example of how the Secret Service continues to successfully combat identity theft and financial crimes,” said Acting Special Agent in Charge Murray. “The Secret Service utilized state-of-the-art investigative techniques to dismantle this identity theft and tax fraud scheme. Our success in this case and other similar investigations is a result of extraordinary work of our investigators and our close work with our network of law enforcement partners.”
According to the government’s evidence, Nelson was among participants in a massive and sophisticated identity theft and false tax refund scheme involving an extensive network of more than 130 people, many of whom were receiving public assistance. The scheme started in 2006, and false claims for tax refunds were sought for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses in the District of Columbia.
From December 2007 through January 2012, according to the government’s evidence, Nelson used his residential addresses in the District of Columbia to receive some of the fraudulently obtained tax refunds. He also recruited others to receive fraudulent refunds at their addresses. For example, Nelson paid one woman about $150 per check for each refund check delivered to her residential address in the District of Columbia.
Approximately 360 fraudulent federal income tax returns listing the addresses that were under Nelson’s control were filed with the IRS. The returns sought refunds of approximately $908,500. As a result, the IRS sent out 238 checks, totaling about $524,795, and 184 of those checks, totaling $432,804, were ultimately cashed.
Nelson also recruited others to negotiate at least 86 other refund checks, totaling approximately $203,222, causing a total intended loss to the U.S. Treasury of more than $1.1 million.
In announcing the sentence, Acting Assistant Attorney General Ciraolo, Acting U.S. Attorney Cohen, Special Agent in Charge Kelly, Acting Inspector in Charge McGinnis, Assistant Inspector General Phillips and Acting Special Agent in Charge Murray commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jessica N. Moran and Jeffrey B. Bender of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
District of Columbia Man Sentenced to 41 Months in Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
WASHINGTON – James Nelson, 32, of Washington, D.C., was sentenced today to serve more than three years in prison for various crimes he committed in a far-reaching identity theft and tax fraud scheme in which he and others filed fraudulent federal income tax returns seeking more than $1.1 million in refunds, the Justice Department announced.
Nelson is among approximately 12 people who have pled guilty in the U.S. District Court for the District of Columbia to charges in one of the largest prosecutions to date involving the use of stolen identifying information. The overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $40 million.
The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C., Field Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division, Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of Treasury, and Acting Special Agent in Charge James M. Murray of the U.S. Secret Service’s Washington, D.C., Field Office.
Nelson pled guilty on Jan. 29 to conspiracy to defraud the United States with respect to claims, aiding and abetting in the making of false claims for refund and aiding and abetting in fraud and related activity involving identification information. He was sentenced to 41 months in prison by the Honorable U.S. District Judge Ellen S. Huvelle of the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release. In addition, as part of his plea agreement, Nelson must pay $636,026 in restitution to the IRS.
“This criminal was part of a brazen scheme to flood the IRS with thousands of fake income tax returns and steal from honest taxpayers,” said Acting U.S. Attorney Cohen. “These thieves filed bogus tax returns with the stolen identities of people in nursing homes and prisons to generate fraudulent refunds. James Nelson is now headed to a federal penitentiary where he can no longer execute scams that drive up taxes on hardworking Americans who play by the rules.”
“One of the Tax Division’s highest priorities is prosecuting individuals who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “As in this case, this street crime often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and use all available tools to prosecute these offenders to the fullest extent of the law.”
“Nelson’s greed will have a long-term impact on his victims and cause immeasurable harm to their financial well-being,” said IRS-CI Special Agent in Charge Kelly. “The selfish acts of criminals like Nelson have far-reaching consequences, and those like him, who steal from innocent victims and the U.S. Treasury, should be on notice that the government will aggressively pursue identity thieves and tax cheaters.”
“Today’s sentencing confirms that anyone who preys on citizens’ identification for financial gain, especially when they use the U.S. Mail to further their criminal activity, will be held accountable,” said Acting Postal Inspector in Charge McGinnis. “The Postal Inspection Service values the collaboration with its law enforcement partners in the case.”
“This sentencing reinforces the commitment of Treasury’s Office of Inspector General and its law enforcement partners to pursue criminal charges against individuals and groups that prey on the public by stealing identities and fleecing the U.S. taxpayer and Treasury Department in their criminal schemes,” said Assistant Inspector General Phillips.
“The arrest of James Nelson is yet another example of how the Secret Service continues to successfully combat identity theft and financial crimes,” said Acting Special Agent in Charge Murray. “The Secret Service utilized state-of-the-art investigative techniques to dismantle this identity theft and tax fraud scheme. Our success in this case and other similar investigations is a result of extraordinary work of our investigators and our close work with our network of law enforcement partners.”
According to the government’s evidence, Nelson was among participants in a massive and sophisticated identity theft and false tax refund scheme involving an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought since 2006 for tax years 2005 through 2012, often in the names of people, whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses in the District of Columbia.
From December 2007 through January 2012, according to the government’s evidence, Nelson used his residential addresses in the District of Columbia to receive some of the fraudulently obtained tax refunds. He also recruited others to receive fraudulent refunds at their addresses. For example, Nelson paid one woman about $150 per check for each refund check delivered to her residential address in the District of Columbia.
Approximately 360 fraudulent federal income tax returns listing the addresses that were under Nelson’s control were filed with the IRS. The returns sought refunds of approximately $908,500. As a result, the IRS sent out 238 checks, totaling about $524,795, and 184 of those checks, totaling $432,804, were ultimately cashed.
Nelson also recruited others to negotiate at least 86 other refund checks, totaling approximately $203,222, causing a total intended loss to the U.S. Treasury of more than $1.1 million.
In announcing the sentence, Acting U.S. Attorney Cohen, Acting Assistant Attorney General Ciraolo, Special Agent in Charge Kelly, Acting Inspector in Charge McGinnis, Assistant Inspector General Phillips and Acting Special Agent in Charge Murray commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jessica N. Moran and Jeffrey B. Bender of the Tax Division, who prosecuted the case.
Detroit man sentenced on federal drug trafficking chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Terrance Wilson, 26, of Detroit, Michigan was sentenced to 15 months in federal prison after pleading guilty in February of 2015 to interstate travel in aid of drug trafficking. Wilson admitted that he transported heroin from Detroit to Charleston multiple times in November and December of 2014, with the intent to carry out an ongoing business enterprise involving the distribution of heroin in the Charleston area.
On four occasions between December 1 and December 4, 2014, Wilson sold heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team (“MDENT”).
United States District Judge John T. Copenhaver, Jr. presided over this case. The case was investigated by MDENT.
This case is being prosecuted as 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 and heroin trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Department of Justice Announces New Acting Administrator of Drug Enforcement AdministrationRead the Press Release
The Department of Justice today announced the appointment of Chuck Rosenberg to serve as Acting Administrator of the Drug Enforcement Administration (DEA).
“Throughout his distinguished career in law enforcement and public service, Chuck has earned the trust and the praise of his colleagues at every level,” said Attorney General Loretta E. Lynch. “He has proven himself as an exceptional leader, a skilled problem-solver, and a consummate public servant of unshakeable integrity. And he has demonstrated, time and again, his deep and unwavering commitment not only to the women and men who secure our nation, but to the fundamental values that animate their service. As Acting Administrator of the DEA, Chuck will play a vital role in the work of this Administration and this Department of Justice to pursue American priorities, protect American interests, and safeguard our way of life. I can think of no better individual to lead this storied agency, and I have no doubt that his tenure will be defined by the same commitment to honor and excellence that has guided him throughout his distinguished career. I congratulate him once again on this well-deserved appointment, and look forward to all that he will achieve in the days ahead.”
A veteran of the Justice Department, Rosenberg currently serves as Chief of Staff to the Director of the FBI. In this role, he works closely with Director James B. Comey and other senior FBI officials on counterterrorism, intelligence, cyber and criminal investigative issues, including with international, federal, state and local law enforcement partners. He also works closely with Director Comey on management, policy and personnel issues.
“Chuck Rosenberg is one of the finest people and public servants I have ever known,” said Director Comey. “His judgment, intelligence, humility, and passion for the mission will be sorely missed at FBI. I congratulate our friends at the Drug Enforcement Administration. This is good for the entire Department of Justice and the country.”
Rosenberg was presidentially appointed and confirmed as the U.S. Attorney of the Eastern District of Virginia, from 2006 through 2008, and appointed by the Attorney General to serve as the U.S. Attorney of the Southern District of Texas, from 2005 through 2006.
Rosenberg was hired out of law school through the Attorney General’s Honors Program and has served in numerous positions throughout the Department of Justice, including Chief of Staff to the Deputy Attorney General from 2004 through 2005, Counselor to the Attorney General from 2003 through 2004, Counsel to the Director of the FBI from 2002 through 2003, an Assistant U.S. Attorney in the Eastern District of Virginia from 1994 through 2000, and a Trial Attorney for the Tax Division’s Criminal Enforcement Section from 1990 through 1994.
Rosenberg has also spent time working in private practice as Counsel at Hunton and Williams, from 2000 through 2002, and as a partner at Hogan Lovells US LLP (2008-2013).
During his years as a federal prosecutor, Rosenberg conducted grand jury investigations and has been the lead trial lawyer in many federal prosecutions involving espionage, kidnapping, murder, crimes against children and complex financial fraud cases.
Rosenberg received his B.A. from Tufts University, his M.P.P. from Harvard University and his J.D. from the University of Virginia.
Rosenberg will assume the role of Acting Administrator on May 18, 2015. He will replace Administrator Michele Leonhart, who previously announced her retirement.
“Michele has devoted her professional career to the security of our nation and the protection of the American people,” said Attorney General Lynch. “I want to thank her for her 35 years of service to the DEA, to the Department of Justice and to the country, and I wish her well as she embarks on a new chapter in her already extraordinary life.”
Denver Gang Member Arrested for Being A Felon in Possession of A FirearmRead the Press Release
DENVER – David Nunez-Hernandez, age 21, of Denver, Colorado, has been ordered held without bond following his arrest on the charge of being a felon in possession of a firearm, U.S. Attorney John Walsh and ATF Denver Division Special Agent in Charge Luke Franey announced. Nunez-Hernandez was first arrested on April 29, 2015. He was then charged federally based on a Criminal Complaint on May 1, 2015. He was indicted by a federal grand jury in Denver on May 5, 2015. On May 8, 2015, following a contested detention hearing, U.S. Magistrate Judge Nina Y. Wang ordered he be held without bond pending a resolution of his case.
According to court documents and information proffered to the court during the defendant’s detention hearing, on April 29, 2015 at 5:00 p.m. a Denver Police officer, while on patrol, observed a vehicle without a state-mandated front license plate. The officer then conducted a traffic stop. During the traffic stop the officer learned the driver, David Nunez-Hernandez was driving without a license, which had been revoked based on a car insurance violation. The officer learned that Nunez-Hernandez was going to his friend’s house because his “homie” just got shot. It was later determined that Nunez-Hernandez’s cousin was the one who was shot.
Denver Police obtained permission from Nunez-Hernandez to search his vehicle. While searching the trunk of the car, the officer observed the handle of a firearm. The firearm turned out to be a loaded Smith and Wesson, model 686, .357 magnum caliber revolver. Further investigation revealed that Nunez-Hernandez had been previously convicted of a felony offense, and was therefore prohibited from possessing firearms. Nunez-Hernandez had two convictions out of Denver District Court, one in 2011 for attempted escape from community corrections, and one in 2009 for possession of a Schedule 2 controlled substance. He also had a conviction in Adams County District Court in 2009 for felony menacing real/simulated weapon. Nunez-Hernandez was arrested and charged with being a felon in possession of a firearm.
Nunez-Hernandez then made several appearances in U.S. District Court, including his advisement. During his detention hearing, additional information came out about his background, including the fact that he is an “Eastside Playboy Crip” and that he uses marijuana three times a day.
“Combatting violent street crime requires the close cooperation of federal, state and local law enforcement,” said U.S. Attorney John Walsh. “This arrest is part of federal law enforcement’s ongoing effort to work with our Metro Denver partners to address gang-related gun violence.”
“ATF and our partners at the Denver Police Department will continue to have zero tolerance for convicted felons who possess firearms in our community,” said ATF Special Agent in Charge Luke Franey.
Nunez-Hernandez faces one count of being a felon in possession of a firearm. If convicted on that count he faces not more than 10 years in federal prison, and up to a $250,000 fine.
This case was investigated by the Project Safe Neighborhood Task Force, which includes the ATF, the Denver Police Department, and the Lakewood Police Department.
The defendant is being prosecuted by Assistant U.S. Attorney Robert Brown.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Sentenced to over a Year in Prison for Growing Marijuana and Destruction of the Plumas National ForestRead the Press Release
SACRAMENTO, Calif. — Alejandro Soto-Silva, 24, a Mexican national, was sentenced today by United States District Judge Kimberly J. Mueller to one year and six months in prison and restitution of $9,572 for growing marijuana and for depredation of public lands, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 30, 2014, a team of Plumas County Sheriff’s Office deputies and U.S. Forest Service agents raided a large marijuana cultivation site near the Soda Creek drainage on the Plumas National Forest. After entering the marijuana cultivation site, agents and deputies observed Soto-Silva nearby. Shortly after spotting Soto-Silva, deputies and agents arrested him in an area of the marijuana cultivation site used to process marijuana. Close to where they arrested Soto-Silva, law enforcement observed 30-40 pounds of processed marijuana in black plastic bags.
Law enforcement surveyed the marijuana cultivation site and counted 3,724 growing marijuana plants. They also documented habitat destruction to the Plumas National Forest caused by activities associated with marijuana cultivation, including trail building, forest clearing, irrigation, pesticide use, and extensive garbage throughout the cultivation site. Further, law enforcement observed water being diverted from forest waterways in order to cultivate marijuana. Rehabilitating and remediating the National Forest habitat injured by the marijuana cultivation will cost the U.S. Forest Service at least $9,572.
This case was the product of an investigation by the Plumas County Sheriff’s Office and the U.S. Forest Service. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
Collin County Woman Sentenced in Plano ISD Embezzlement SchemeRead the Press Release
PLANO, Texas – A 68-year-old Prosper, Texas woman has been sentenced to federal prison in connection with her role in a conspiracy to embezzle millions from the Plano Independent School District, announced U.S. Attorney John M. Bales today.
Carol Ann LaRue pleaded guilty on June 24, 2014, to conspiracy to commit federal program fraud and was sentenced to 30 months in federal prison today by U.S. District Richard Schell. LaRue was also ordered to pay restitution in the amount of $1,252,556 to Plano ISD.
According to information presented in court, LaRue owned and operated Fire Systems Specialists (FSS) and Digital Security Solutions (DSS), companies supposedly in the business of maintaining fire safety systems and security systems. Between May 2011 and December 2013, LaRue conspired with Plano Independent School District employee, Kris Wilson Gentz, to defraud Plano ISD by submitting fraudulent invoices for services that were not rendered and products that were not provided. When payment was made to FSS and DSS, LaRue and Gentz would split the profits between themselves. As a result of the fraudulent scheme, LaRue is responsible for losses to Plano ISD of $1.2 million and Gentz was responsible for losses of $2.6 million. Gentz pleaded guilty to the same charges and was sentenced to 51 months in federal prison on Apr. 16, 2015.
This case was investigated by the Federal Bureau of Investigation and the Department of Education and prosecuted by Assistant U.S. Attorney Christopher A. Eason.
Charleston man sentenced to federal prison for home invasion robberyRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Robert J. Smith, 36, of Charleston, West Virginia was sentenced in federal court in Charleston for aiding and abetting a robbery affecting interstate commerce. On April 22, 2012, Smith, Robert Barcliff, Keith Glenn, and William Seltzer carried out an armed, home-invasion robbery in Marmet, West Virginia, of drug dealers they believed to be from Detroit, Michigan, and who they expected to have drugs and cash from the illegal drug sales. Barcliff and Smith dressed in dark clothing and stormed the apartment at gunpoint. They stole drug proceeds from the apartment and then fled from the scene. During the robbery, a firearm was discharged inside the apartment.
Smith was sentenced to 70 months in prison for the armed robbery, and upon completion of that sentence, to serve an additional 37 months for violation of a period of supervised release. Smith was on supervised release at the time of the home invasion for a previous drug conviction.
The Federal Bureau of Investigation, South Charleston Police Department, and Charleston Police Department conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ivan Rosario, 20, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin, was sentenced to 84 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Edward H. White, who handled the case, stated that from 2011 through February 4, 2014, the defendant conspired with others to possess and distribute 100 grams or more of heroin and fentanyl, a Schedule II controlled substance. As part of the conspiracy, Rosario maintained a residence in Buffalo for the purpose of distributing heroin and fentanyl to his customers. The defendant sold the drugs on a daily basis and received cash paid by customers.
The plea was the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division.
Bloomfield Man Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Richard Archuleta, 33, of Bloomfield, N.M., was sentenced today in federal court in Albuquerque, N.M., to 51 months in federal prison followed by three years of supervised release for his drug trafficking conviction. Archuleta was also ordered to forfeit 64 firearms seized from his residence pursuant to a search warrant.
Archuleta was one of 29 individuals charged with drug trafficking offenses as the result of a multi-agency investigation targeting drug trafficking in northwestern New Mexico. The investigation originally culminated on Feb. 26, 2014, when 26 of the defendants were arrested during a law enforcement operation led by Homeland Security Investigation (HSI) and the HIDTA Region II Narcotics Task Force. Two other defendants were arrested during the course of the investigation and the final defendant was arrested on March 3, 2014.
The 29 defendants were charged as a result of Operation “Brown Ice,” a year-long investigation that initially targeted a methamphetamine trafficking organization led by Isaac Anaya that distributed quantities of methamphetamine throughout San Juan County and expanded to include other drug trafficking activity in the area. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Thirteen of the defendants, including ringleader Isaac Anaya, 31, of Farmington, were charged in a 15-count federal indictment alleging a conspiracy to distribute methamphetamine in San Juan County from May 2013 through Sept. 2013. The remaining 16 defendants were charged with state drug trafficking and firearms offenses based on criminal complaints. During the course of the investigation, officers seized approximately five pounds of methamphetamine and five firearms. The law enforcement operation on Feb. 24, 2014, included the execution of eleven federal search warrants at two Bloomfield residences, four Farmington residences, two residences in San Juan County, two Bloomfield businesses, two Farmington businesses and a storage unit in Bloomfield. It also included the execution of three state search warrants at two residences in San Juan County and one Farmington residence. Officers seized numerous firearms, including a fully automatic Glock 19, a short-barreled rifle and a carbine with an obliterated serial number, four blasting caps, four small binary explosives and approximately 31.7 grams of methamphetamine during the execution of the search warrants and the law enforcement operation.
On Sept. 12, 2014, Archuleta pled guilty to conspiracy to distribute a controlled substance. In entering the guilty plea, Archuleta admitted that from May 28, 2013 through Sept. 25, 2013, he and his co-defendants conspired to distribute methamphetamine in San Juan County. Under the terms of his plea agreement, Archuleta was ordered to forfeit 31 rifles, 22 pistols, eight shotguns, two revolvers, firearm magazines and all ammunition that was seized by law enforcement from Archuleta’s residence on Feb. 26, 2014.
The federal and state cases filed as a result of Operation “Brown Ice” were investigated by the HSI office in Albuquerque, San Juan County Sheriff’s Office, HIDTA Region II Narcotics Task Force, Bloomfield Police Department, Farmington Police Department and Aztec Police Department. Assistant U.S. Attorney Reeve L. Swainston is prosecuting the federal case, and Assistant District Attorney David Cowen of the 11th Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Belleville Woman Pleads Guilty to Scheme to Defraud U.S. Marshals Survivors Benefit Fund and the Backstoppers, Inc.Read the Press Release
Pamela Denise Robtoy, 55, Belleville, Illinois, entered pleas of guilty to Mail Fraud and Wire Fraud in a Scheme to Defraud and Embezzle from the U.S. Marshals Survivors Benefit Fund and The BackStoppers, Inc., the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Robtoy faces a prison sentence of up to 40 years, a fine of up to $500,000, up to 3 years’ supervised release after serving her sentence, and a mandatory order of restitution. Sentencing has been set for August 28, 2015.
Robtoy admitted as part of her pleas of guilty that she embezzled funds from the 3rd Annual John Perry Golf Benefit held in October of 2013. The proceeds from the charitable event were to benefit the U.S. Marshals Survivors Benefit Fund and The BackStoppers, Inc. The Annual John Perry Golf Benefit Tournament was a charitable benefit held annually to remember Deputy U.S. Marshal John Brookman Perry, who was killed in the line of duty on March 8, 2011. The wire fraud count charged that Pamela Denise Robtoy sent an email to a Deputy United States Marshal falsely indicating that the checks to the U.S. Marshals Survivors Benefit Fund and The BackStoppers, Inc. had been reissued in an effort to avoid detection of her scheme.
The investigation was conducted by the Postal Inspection Service with the assistance of other federal agencies. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Beckley area man sentenced to nine years for distributing oxycodoneRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Boyd Wendell Clark, age 31, of Daniels, West Virginia, was sentenced in federal court in Beckley to nine years of imprisonment, followed by a 5-year term of supervised release. Clark previously pled guilty in January of 2015, to distributing oxycodone to a person cooperating with law enforcement authorities. The drug deal took place on Pine Grove Circle in Daniels, West Virginia. Clark was sentenced under the federal “career offender” guideline, which provides for enhanced sentencing based upon the defendant’s criminal history. This case was investigated by the Beckley Raleigh County Drug and Violent Crime Task Force and is being prosecuted under the Beckley Pill Initiative directed by the United States Attorney’s Office.
This case is 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 pills and heroin in communities across the Southern District.
The sentence was imposed by the Honorable Irene C. Berger.
Baltimore Man Admits to Robbing Six Businesses in Two DaysRead the Press Release
Baltimore, Maryland – Nick Hornberger, age 33, of Baltimore, pleaded guilty today to three counts of robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on March 5, 2014, from 12:40 a.m. to 2:35 p.m. Hornberger robbed the following five stores, stealing a total of $162 from four of these stores:
Royal Farms, Dundalk Avenue, Baltimore County;
Royal Farms, O’Donnell Street, Baltimore City;
7-11, Eastern Boulevard, Baltimore County;
7-11, Wise Avenue, Baltimore County; and
Dunkin Donuts, Kenwood Avenue, Baltimore County.
The following day, Hornberger robbed a pizza restaurant on Holabird Avenue in Baltimore County of $450.
In each robbery, the cashier or employee from whom Hornberger demanded money believed that Hornberger had a weapon, or was pointing a gun or assault rifle from inside of a white plastic bag. Following his arrest, Hornberger identified himself in photos taken from video surveillance at each robbery. A search warrant was executed at Hornberger’s motel room and a car used in the robberies. Law enforcement seized a toy black assault style rifle stuffed inside a white plastic bag.
Hornberger and the government have agreed that if the Court accepts the plea agreement, Hornberger will be sentenced to between 60 to 151 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 25, 2015 at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments and Baltimore City and County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Piper F. McKeithen, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, and Assistant United States Attorney Bonnie S. Greenberg, who are prosecuting the case.
Baltimore Drug Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Earl Hamman Musheer, age 60, of Baltimore, today to 10 years in prison followed by five years of supervised release for conspiring to possess with the intent to distribute five kilograms or more of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, Musheer had a co-conspirator retrieve packages containing a total of at least five kilograms of cocaine from a store in Baltimore County, Maryland. The cocaine was destined for sale in and around Baltimore.
On November 6, 2014, DEA investigators became aware that a suspicious package was in route to the store. When the parcel was delivered a couple days later to the store, the investigators detected a strong odor emanating from the box. A drug detection dog alerted on the parcel, indicating the presence of a controlled substance. The investigators subsequently opened the parcel pursuant to a search and seizure warrant. The parcel contained more than five kilograms of cocaine, which has a wholesale value of roughly $150,000. After obtaining a second warrant authorizing the installation of a tracking device within the parcel, the investigators inserted the tracking device and returned the package to the store.
On November 10, 2014, the co-conspirator retrieved the package, and was observed driving to meet Musheer in Baltimore City. Musheer placed the package in his own car, after which both were arrested. At the time of his arrest, Musheer had over $40,000 in cash and numerous pre-paid cell phones in his car.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Joshua T. Ferrentino, who prosecuted the case.
12 May 2015
Waterbury Man Sentenced to 5 Years in Federal Prison for Firearm and Narcotics OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that BRANDON SAPP, 28, of Waterbury, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 60 months of imprisonment, followed by three years of supervised release, for possessing a firearm and heroin.
According to court documents and statements made in court, on August 5, 2014, Watertown Police observed SAPP drive up to a residence on Franklin Avenue and conduct what appeared to be a narcotics transaction with another individual standing outside of the home. When officers attempted to stop his car, SAPP pulled away at a high rate of speed. In the ensuing pursuit, SAPP struck a police vehicle, exited his car and fled on foot. He was apprehended a short time later.
A search of the route through which SAPP had fled revealed a 9mm semi-automatic pistol, and a search of his car revealed three 9mm firearm magazines, 15 rounds of 9mm ammunition and approximately 375 baggies of heroin, many of which were marked with the label “Obsession.” SAPP also possessed approximately $990 in cash.
On January 22, 2015, SAPP pleaded guilty to one count of possession of heroin with the intent to distribute, and one count of possession of a firearm in furtherance of a drug trafficking crime.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Watertown Police Department. The case was prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.
United States Settles Disability Discrimination Case Involving Residents of a Continuing Care Retirement CommunityRead the Press Release
The United States announced today the filing of a consent order that resolves allegations that Fort Norfolk Retirement Community Inc. (Fort Norfolk) violated the Fair Housing Act by instituting policies that discriminated against residents with disabilities at Harbor’s Edge, a continuing care retirement community in Norfolk, Virginia.
The consent order, which still needs to be approved by the court, was filed yesterday, along with a complaint, in the U.S. District Court of the Eastern District of Virginia. The complaint alleges that beginning in May 2011, Fort Norfolk instituted a series of policies that prohibited, and then limited, residents in the assisted living, nursing and memory support units at Harbor’s Edge from dining in dining rooms or attending community events with independent living residents. The complaint also alleges that when residents and family members complained about these policies, Fort Norfolk retaliated against them. In addition, the complaint alleges that Fort Norfolk had polices that discriminated against residents who used motorized wheelchairs by requiring those residents to pay a non-refundable fee, obtain liability insurance and obtain Fort Norfolk’s permission.
Under the consent order, Fort Norfolk will pay $350,000 into a settlement fund to compensate residents and family members who were harmed by these policies. Fort Norfolk will also pay a $40,000 civil penalty to the United States. In addition, Fort Norfolk will appoint a Fair Housing Act compliance officer and will implement a new dining and events policy, a new reasonable accommodation policy and a new motorized wheelchair policy.
“This consent order will ensure that all residents with disabilities at Harbor’s Edge are treated equally and that spouses and friends will be able to eat and socialize together,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We are very pleased with Fort Norfolk’s willingness to work with us to achieve this important resolution.”
Individuals who are entitled to share in the settlement fund will be identified through a process established in the consent order. Persons who believe they were subjected to unlawful discrimination at Harbor’s Edge should contact the Justice Department toll-free at 1-800-896-7743 mailbox #5 or e-mail the Justice Department at [email protected].
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
United States Joins Lawsuit Against Bay Area Sleep ClinicsRead the Press Release
SAN JOSE – The United States has joined a whistleblower action pending in the Northern District of California against the owners and operators of Bay Sleep Clinic and their related businesses, Qualium Corporation and Amerimed Corporation, announced United States Attorney Melinda Haag and U.S. Department of Health and Human Services Special Agent in Charge, Ivan Negroni.
The action alleges that Saratoga, Calif., residents Anooshiravan Mostowfipour, 57, and Tara Nader, 56, fraudulently billed the Medicare program for diagnostic sleep tests. Defendants Mostowfipour and Nader own Qualium Corporation, which operates sixteen sleep clinics doing business as Bay Sleep Clinic. The defendants also own Amerimed Corporation, which distributes durable medical equipment under the name Amerimed Sleep Diagnostics. The defendants are alleged to have billed Medicare for tests that were conducted at unapproved locations and performed by technicians lacking the licenses or certifications required by Medicare payment rules and regulations. The government also alleges that the defendants fraudulently billed Medicare for medical devices in violation of Medicare rules and regulations that prohibit providers of diagnostic sleep tests from supplying medical devices and from sharing a sleep laboratory location with a durable medical equipment supplier.
The whistleblower action, captioned United States ex rel. Dresser v. Qualium Corp., et al., Civil Action No. 12-1745 (N.D. Cal.), was filed under the qui tam provisions of the False Claims Act. The False Claims Act allows for private persons, such as Elma F. Dresser in this case, to file actions to provide the government information about wrongdoing. Under the statute, if it is established that a person has submitted or caused others to submit false or fraudulent claims to the United States, the government can recover treble damages and $5,500 to $11,000 for each false or fraudulent claim filed. If the government is successful in resolving or litigating its claims, the whistleblower who initiated the action can receive a share of between 15 percent to 25 percent of the amount recovered.
The whistleblower action in this case contained additional allegations. However, the United States is intervening only with regard to allegations that Qualium Corporation (doing business as Bay Sleep Clinic), Amerimed Corporation (doing business as Amerimed Sleep Diagnostics), Tara Nader, and Anooshiravan Mostowfipour submitted false claims to Medicare for durable medical equipment and for sleep tests performed at unapproved locations or by unqualified technicians. The United States is not pursuing the whistleblower’s additional claims against the third-party company used by the defendants to submit claims to Medicare nor claims regarding alleged improper payments made by the defendants to medical providers.
Assistant U.S. Attorney Kimberly Friday is handling the case, with assistance from Financial Fraud Investigator Michael Zehr. The investigation was conducted by the U.S. Attorney’s Office for the Northern District of California and the Office of Inspector General of the Department of Health and Human Services.
The claims asserted in the complaint are allegations only, and there has been no determination of liability.
U.S. Attorney Recognizes National Police Week 2015: Honoring and Remembering Our Fallen Law Enforcement OfficersRead the Press Release
Again this year, communities across the United States will come together during National Police Week—May 10-16—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.
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, DC. These 273 officers include 117 officers who were killed during 2014, plus 156 officers who died in previous years but whose stories of sacrifice had been lost to history until now.
The fallen officers include Deputy U.S. Marshal Josie Wells. DUSM Wells was shot and killed while in Baton Rouge attempting to arrest a fugitive for a double homicide. Just last week, police officers Liquori Tate and Benjamin Deen were killed in the line of duty in nearby Hattiesburg, Mississippi.
All fallen law enforcement officers will be remembered during the following local Police Week services:
- Louisiana State Police Headquarters in Baton Rouge on Thursday, May 14, at 6:00 p.m.;
- Ascension Parish Sheriff’s Office, APSP Training Center on St. Landry Road, on Friday, May 15, at 10:00 a.m.
- Baton Rouge Police Department and East Baton Rouge Sheriff’s Office, Behind Baton Rouge City Hall near Statutes, on Friday, May 15, at 10:00 a.m.
U.S. Attorney Walt Green stated: “This week is a sober reminder of the very real dangers that our brave men and women in law enforcement face every single day. Their dedication to protecting our communities and families despite such dangers is inspiring and humbling. We must never forget their sacrifices and those of their families. I encourage all of us to show our appreciation to those who protect and serve during the events of this week and beyond.”
The names of all 273 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 27th Annual Candlelight Vigil on the evening of May 13, 2015. So that people across the country can experience this unique and powerful ceremony, the vigil will be webcast live over the Internet beginning at 8 pm (EDT) on May 13th. To register for this free online event, visit www.LawMemorial.org/webcast.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2015. The national observance is organized by a group of organizations led by the National Law Enforcement Officers Memorial Fund (NLEOMF), Concerns of Police Survivors, the Fraternal Order of Police and the Fraternal Order of Police Auxiliary.
On May 15th each year, the Fraternal Order of Police and the Fraternal Order of Police Auxiliary host a ceremony on the west steps of the U.S. Capitol to honor fallen law enforcement officers and their families.
In tribute to American law enforcement officers and at the request of the National Law Enforcement Officers Memorial Fund, Public Law 103-322 designates May 15th National Peace Officers Memorial Day, which is one of only two days each year during which government agencies, businesses and residents are to fly their U.S. flags at half-staff.
For more information about National Police Week, please visit www.LawMemorial.org/policeweek.