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12 May 2015
Cahokia Man Sentenced to Prison for Destruction of EvidenceRead the Press Release
A Cahokia man, Raphael L. Harris, 22, convicted of Destruction of Evidence in violation of federal law, was sentenced to 16 months in federal prison on May 11, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Harris was also sentenced to 1 year supervised release to follow imprisonment, a $150 fine and a $100 special assessment. Harris pleaded guilty to the charges on January 20, 2015. Harris has been in custody since his arrest. According to court documents, Harris was with David Bradford when they saw ATF agents conducting a search at Bradford’s East St. Louis residence. Harris and Bradford left the area, and Harris traded cell phones with Bradford. Harris later disposed of the cell phone because he believed it to be tapped. Bradford was later indicted for weapon and drug offenses and is awaiting trial.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Kit R. Morrissey, Assistant United States Attorney.
Broward Resident Charged in Identity Theft Tax Fraud SchemeRead the Press Release
A Broward County resident was charged in an identity theft fraud scheme, involving 734 unauthorized tax returns.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Keyiona Marvette Wright, 27, of Plantation, Florida, was charged by criminal complaint with one count of possessing fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The defendant faces a maximum statutory sentence of ten years in prison for the unauthorized access charge, and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
According to the criminal complaint, from March 25, 2014 to May 6, 2015, forty-six federal tax returns were filed with the IRS claiming refunds of $135,196 from an IP address in Plantation, Florida. From September 16, 2014 to May 5, 2015, at least 688 rejected federal tax returns, claiming refunds of $733,276, were electronically transmitted to the IRS from this same IP address. Agents confirmed that the IP address was assigned to an apartment rented by Wright.
Based on this information, agents executed a search warrant at Wright’s residence and allegedly found four notebooks containing PII, two computers (one of which had numerous social security numbers and other PII displayed on the screen), a bag and suitcase each containing thousands of PII in paper form, multiple pre-paid/value cards and gift cards, hundreds of documents containing PII (including Department of Labor applications), and papers containing PII scattered throughout the apartment.
The complaint also alleges that agents found a laptop computer outside the searched apartment, next to the bathroom window. The complaint further alleges that the agents were able to view a video on the laptop, which showed Wright counting money.
Wright had her initial appearance on May 8, 2015 before United States Magistrate Judge Patrick M. Hunt.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Cynthia Wood.
The complaint merely contains allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
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
Broken Arrow Man Pleads Guilty to Stealing Nearly $300,000 from Supplemental Nutrition Assistance ProgramRead the Press Release
TULSA, Okla. — Milton Islam, 46, of Broken Arrow, Oklahoma and the owner of Apache Food Mart in Tulsa, Oklahoma, pleaded guilty today to stealing approximately $282,912 from the United States Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
Islam admitted that from May 26, 2011 to July 31, 2014, he stole $282,912 from SNAP using a scheme in which customers used their SNAP benefits at Apache Food Mart to receive cash, rather than nutritional assistance. The cash customers received was only half the amount that Islam received from SNAP. SNAP offers nutrition assistance to millions of eligible, low-income individuals and families.
Sentencing is set for August 11, 2015, before United States District Court Chief Judge Gregory K. Frizzell. Islam faces the statutory maximum penalty of 10 years in prison and fine of up to twice the loss amount or $565,824. In addition to prison incarceration, Islam faces a criminal forfeiture money judgment of $282,912.
The case was investigated by the United States Department of Agriculture-Office of the Inspector General. Assistant United States Attorneys Clinton J. Johnson, Shannon Cozzoni, and Catherine Depew prosecuted the case.
To report suspicious Nutrition Assistance fraud, contact the United States Department of Agriculture Office of the Inspector General at 1 (800) 424-9121. For information on SNAP, visit www.fns.usda.gov/snap.
Bridgeport, WV doctor sentenced to 5 years for unlawful prescribing practicesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dr. Edita Milan, 76, of Fairmont, West Virginia, was sentenced today to 60 months in prison for utilizing her Bridgeport, West Virginia medical practice to unlawfully distribute prescription painkillers, United States Attorney William J. Ihlenfeld, II, announced.Milan, who was found to have repeatedly prescribed excessive amounts of prescription painkillers for no legitimate medical reason, will self-report to federal prison on July 13, 2015. According to investigators, patients of Milan were routinely given prescription pills without an adequate physical examination. Additionally, Milan allowed members of her staff to utilize her D.E.A. registration number to prescribe narcotic painkillers outside the standard course of medical practice. Former employees of the doctor’s office as well as an area pharmacist were also convicted in connection with the investigation into Milan’s prescribing practices.
“Physicians and pharmacists play a key role in our efforts to address the drug epidemic in West Virginia,” said U.S. Attorney Ihlenfeld. “We have to be able to rely upon them to exercise sound judgment and uphold the standard of care that their offices demand. The U.S. Attorney’s Office remains committed to educating medical professionals on the proper prescribing and dispensing of narcotic medications and equally committed to prosecuting those that do not abide by the rules.”
Dr. Milan pled no contest in December 2014 to the following charges:
• One count of “Maintaining a Drug Involved Premises.”
• One count of “Distribution of Schedule III and IV Substances.”
• One count of “Distribution of Schedule II and IV Substances.”
• Two counts of “Distribution of Schedule II Controlled Substances.”As part of today’s sentence, Milan was also ordered to pay restitution in excess of $3,000.00 to the estate of a patient who died as a result of prescription painkillers distributed by Milan.
Assistant U.S. Attorneys John C. Parr, Andrew Cogar, and Sarah Montoro prosecuted the case on behalf of the government. The U.S. Drug Enforcement Administration and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, conducted the investigation.
U.S. District Judge Irene M. Keeley presided.
Border Patrol Supervisor Charged with Stealing Social Security BenefitsRead the Press Release
LAREDO, Texas - Federal charges have been filed against James J. Doran, 54, of Laredo, alleging he committed larceny of U.S. government property by wrongfully collecting more than $108,000 in Social Security Administration (SSA) benefits, announced United States Attorney Kenneth Magidson.
The indictment was returned under seal earlier today and unsealed upon his arrest. He is expected to make his initial appearance before U.S. Magistrate Judge J. Scott Hacker tomorrow at 9:00 a.m.
If convicted, he faces up to 10 years in prison and a possible $250,000 maximum fine.
The investigation leading up to the indictment was conducted by the SSA - Office of Inspector General, Department of Homeland Security - Office of Inspector General and the Bureau of Vital Statistics Fraud Unit. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Blain Pennsylvania Resident Charged with Distribution of Heroin in Federal Prison FacilityRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a criminal drug distribution charge has been filed against Lindalee Middleton of Blain, Pennsylvania.
According to United States Attorney Peter Smith, Middleton, age 56, is charged with attempting to distribute heroin to an inmate at USP Allenwood during a visit on March 15, 2014. The government also filed a plea agreement in the case, which must be approved by the court.
The investigation was conducted by the Federal Bureau of Prisons, Special Investigative Service and the Federal Bureau of Investigation. Assistant U.S. Attorney Wayne Samuelson is prosecuting the case.
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 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Belleville Man Sentenced to 15 Plus Years in Prison for Convenience Store RobberyRead the Press Release
Patrick S. McGuire, 49, of Belleville, Illinois was sentenced on May 11, 2015, in the United States District Court for the Southern District of Illinois to 188 months in prison and three years of supervised release for charges stemming from a robbery at Circle K Gas Station, located at 421 South Belt East, Belleville, IL, on July 25, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence showed that in the early morning hours of July 25, 2014, McGuire entered the Circle K Gas Station with a plastic bag over his head and a plastic bag covering a pointed object in his hand and demanded money from the lone clerk. McGuire got about $60 from the robbery. McGuire had been on probation for less than two weeks for a 2013 felony offense when he committed the robbery.
"As I said when I initiated this program, we will not stop our aggressive prosecutions of these cases until this scourge of robberies abates. If you are thinking about this type of opportunistic crime, be warned – federal penalties are harsh. You will serve a long time far away from your family and friends!" said United States Attorney Wigginton.
Noting McGuire’s fourteen previous felony convictions and over thirty misdemeanor convictions, the Honorable Nancy J. Rosenstengel commented that McGuire’s criminal history was "the most extensive criminal history I have seen" and called the robbery "one of many brazen robberies in this area." In sentencing McGuire to over fifteen years in prison, she stated, "I don’t think I’ve seen a case where there’s a stronger need to protect the public."
The case was investigated by the Federal Bureau of Investigation and the Belleville Police Department. The case was prosecuted by Assistant United States Attorney Laura Reppert.
Bedford County Man Sentenced for Trafficking in Counterfeit Sports ApparelRead the Press Release
JOHNSTOWN, Pa. - A resident of Everett, Pa., has been sentenced in federal court to five years probation, the first 12 months of which must be served by conditions of home confinement, a $3,000 fine, 100 hours of community service, and $113,218 restitution to the Coalition for the Advancement for the Protection of Sports Logos on his conviction of trafficking in counterfeit goods, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on John F. Crawford, IV, 48.
According to information presented to the court, on Oct. 25, 2012, Crawford trafficked in various counterfeit National Football League, National Hockey League and Major League Baseball logo apparel.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security-Homeland Security Investigations for the investigation leading to the successful prosecution of Crawford.
Another Baton Rouge Businessman Convicted of Motion Picture Tax Credit FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that GEORGE M. KOSTUCH, age 43, has pled guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343, in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program (“Tax Credit Program”). KOSTUCH faces the potential of a significant term of imprisonment, supervised release, and a substantial fine.
As described in the Bill of Information filed this past March, KOSTUCH owned and operated K2 Pictures, LLC, which provided technical services for the production of motion pictures. As KOSTUCH admitted in connection with his guilty plea in Court today, however, between June 1, 2010 and March 24, 2011, KOSTUCH, through his company, issued and delivered checks totaling approximately $539,500 for production expenditures that had not been incurred. These fraudulent checks were later used in support of fraudulent applications for film tax credits, which were submitted to the Louisiana Economic Development Office (“LED”), which issued tax credits totaling $161,850.
U.S. Attorney Walt Green stated, “This is yet another example of our commitment to prosecute abuses of the Tax Credit Program. Particularly in today’s budget climate, fraud and deceit involving the Tax Credit Program – and other fraudulent schemes that allow criminals to enrich themselves at the State’s expense – will be investigated and prosecuted to the fullest extent of the law. We appreciate the work of the FBI and the Louisiana State Inspector General’s Office in this case and the cooperation of the LED.”
Louisiana Inspector General Stephen Street commented: “Louisiana's film tax credit program cannot function as intended when people are constantly defrauding it. We are continuing to do everything we can to make sure there are criminal consequences when that happens, and today's guilty plea is the latest example of that.” Inspector General Street added: “I want to thank our partners at the FBI and United States Attorney for their usual outstanding work.”
This investigation was conducted by the FBI and the Louisiana State Inspector General’s Office and is being prosecuted by Assistant United States Attorneys Frederick A. Menner, Jr. and Paul L. Pugliese.
Alabama Woman Charged with Conspiracy in $7.5 Million Stolen Identity Tax Refund Fraud RingRead the Press Release
A Phenix City, Alabama, resident was arrested today after being indicted on April 28 by a federal grand jury sitting in the Middle District of Alabama on charges of conspiracy to defraud the United States, wire fraud and aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
The indictment charges Talashia Hinton, aka LayLay and LaLa, with one count of conspiracy to defraud the United States, five counts of wire fraud and five counts of aggravated identity theft. According to the allegations in the indictment, Hinton participated in a large-scale stolen identity tax refund scheme in which more than 3,000 false tax returns for 2012 and 2013 were filed that claimed more than $7.5 million in fraudulent federal income tax refunds from the Internal Revenue Service (IRS). Hinton worked with other individuals who supplied her with IRS electronic filing identification numbers (EFINs) and stolen identities that included personal information so that Hinton could prepare and file false tax returns to claim refunds using those stolen names. Hinton directed the IRS to pay the refunds by issuing U.S. Treasury checks and direct deposits onto prepaid debit cards.
If convicted, Hinton faces a statutory maximum sentence of 20 years in prison for each wire fraud count, a statutory maximum sentence of five years in prison for the conspiracy count and a mandatory minimum sentence of two years in prison for aggravated identity theft. Hinton also faces monetary penalties, including fines, forfeiture and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Acoma Pueblo Man Sentenced for Assaulting His Intimate PartnerRead the Press Release
ALBUQUERQUE – Hugh H. Poncho, 27, a member and resident of Acoma Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to eight months in prison followed by one year of supervised release for assaulting his intimate partner.
Poncho was arrested on Sept. 15, 2014, on a criminal complaint charging him with assaulting an intimate partner by strangulation. According to the complaint, on Sept. 11, 2014, officers of the Acoma Pueblo Tribal Police Department responded to a call reporting an assault occurring on Acoma Pueblo in Cibola County, N.M. The complaint alleged that Poncho assaulted the victim, an Acoma Pueblo woman, by punching, kicking, head-butting and strangling her.
On March 3, 2015, Poncho entered a guilty plea to a felony information and admitted assaulting the victim by pushing her and causing her to fall. Poncho also admitted kicking the victim on her legs, punching her in the face, and head-butting her in the forehead. Poncho acknowledged that the victim sustained temporary but substantial injuries as a result of the assault.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department, and was prosecuted by Assistant U.S. Attorney Shammara H. Henderson.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
11 May 2015
Woman Sentenced for Filing False Tax ReturnsRead the Press Release
United States Attorney Deborah R. Gilg announced that today, May 11, 2015, United States District Judge John M. Gerrard sentenced Magalita Gelin, to five years’ probation with conditions that she serve 8 months of home confinement and 12 consecutive weekends in jail. Ms. Gelin was also ordered to pay $56,508 in restitution.
From February, 2009, until August, 2010, Magalita Gelin and Joshua Miles electronically filed fraudulent tax returns for a number of people and received refunds from these bogus returns. People who were generally not previously known to Miles and Gelin went to the Miles-Gelin residence in Bellevue, Nebraska, and had the bogus tax returns prepared and filed. Some individuals in whose name returns were filed were jail inmates where Miles worked. The bogus tax returns were false in a number of respects, including: (1) the returns claimed the taxpayer had worked, typically at Wendy’s, Burger King, Walmart, or Omaha Steaks, when no such employment occurred, and the corresponding W2 and claimed income and taxes withheld figures were similarly false; and (2) sometimes there was a claim of exemption for non-existent dependents.
A total of approximately 31 false tax returns were filed claiming refunds totaling approximately $111,444.00, which, in turn, caused the Internal Revenue Service to make bogus tax refund payments to Gelin and Miles totaling approximately $56,508.
“Manipulating our nation’s tax system victimizes all honest law-abiding citizens,” said Sybil A. Smith, IRS Criminal Investigation Special Agent in Charge, St. Louis Field Office.
This case was investigated by the IRS Criminal Investigation Division.
Westbrook Man Sentenced to Nine Years for Transporting Child Pornography and Making ThreatsRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Michael Van Eekhout, 51, of Westbrook, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to nine years in prison and five years of supervised release for transporting child pornography and transmitting an extortionate threat. Van Eekhout pleaded guilty to the charges on January 21, 2015.
According to court records, in late 2011, Van Eekhout, posing online under an assumed name, persuaded a woman to send him nude photographs of herself. He then told her that he would widely disseminate the photos unless she took explicit photos of herself and sent them to him. When she did so, he posted the photos online. In April 2012, he threatened to continue doing so unless she sent him more explicit photos.
In June 2014, Van Eekhout, posing as the woman, sent an undercover federal agent a digital photograph of a naked pre-pubescent female. The next month, he was interviewed during the execution of a search warrant at his Westbrook home and admitted that he had sent the photograph and had pretended to be the woman.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”). "Child predators are finding more and more that anonymity in their online activities is a false notion," said Bruce Foucart, special agent in charge for HSI Boston. "HSI will continue to use our unique authorities and expertise to find these predators despite their best efforts to hide their true identities."
The 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. The initiative, which is led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.Waldorf Man Sentenced to over 12 Years in Prison for Armed Robbery ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Shawn Delonte Allen, age 40, of Waldorf, Maryland today to 150 months in prison followed by five years of supervised release for conspiring to commit the robbery of a drug dealer and for using and brandishing a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, on April 11, 2014, Allen and his co-conspirators Evan Anthony Peek-Austin and Joel Varela Linares, entered the victim’s residence and awaited his arrival. As the victim arrived home, Allen approached the victim from behind and forced him at gunpoint into the residence. After zip-tying the victim’s hands, Allen, Linares and Austin questioned the victim about the location of drugs and drug proceeds. The robbers thought the victim was in possession of heroin imported from Guatemala or proceeds from heroin sales. Allen, Linares and Austin each had a handgun and threated to kill the victim if he did not produce the drugs or drug proceeds. While questioning the victim, Allen brandished his gun. Allen also heated a metal spoon and placed the hot spoon on the victim’s hands and face, demanding the victim tell them the location of the drugs and money. The victim finally told Allen and his co-conspirators that his American friend had the drugs and money and the robbers allowed the victim to call his friend, who was, in fact, a Special Agent with Homeland Security Investigations. The victim arranged to meet with the agent and told Allen and his co-conspirators that his friend would have approximately 10 kilograms of heroin.
Allen and Linares instructed the victim to drive them to the meeting location in Beltsville, Maryland. Once the HSI agent arrived, the victim met the agent and told him that Allen and his co-conspirators were going to kill him. As the HSI agent and the victim left, Allen got out of the car and brandished his gun. Linares entered another vehicle and pursued the agent’s car until he was stopped by Prince George’s County Police officers. Allen and Austin fled the meeting location and were pursued by law enforcement. They eventually ran away and Allen was subsequently apprehended by police.
Evan Anthony Peek-Austin, age 39, of Landover, Maryland, and Joel Varela Linares, age 25, of Washington, D.C., previously pleaded guilty to their roles in the robbery and are scheduled to be sentenced on June 19, 2015 at 10:00 a.m. and May 28, 2015 at 10:30 a.m., respectively.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Daniel C. Gardner and Kelly O. Hayes, who prosecuted the case.
Virginia Woman Sentenced for Making False Statements in an International Terrorism InvestigationRead the Press Release
Heather Elizabeth Coffman, 29, of Glen Allen, Virginia, was sentenced today to 54 months in prison for making false statements in an international terrorism investigation.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office made the announcement.
Coffman pleaded guilty to a one-count criminal information on Jan. 30, 2015. According to the statement of facts filed with the plea agreement, Coffman admitted that beginning prior to June 2014 and continuing up through November 2014, she used several Facebook accounts under different names showing her support for the Islamic State of Iraq and the Levant’s (ISIL, referred to as ISIS by the defendant and within court documents) cause. These accounts also revealed the defendant’s romantic involvement with an individual referred to as “N.A.,” a foreign national living outside of the United States. In the months leading up to September 2014, Coffman and N.A. communicated almost daily via Facebook and other communications platforms. During their conversations, Coffman and N.A. explored options for N.A. to travel to Syria in order to fight for ISIS and die a “Shaheed,” referring to a martyr who dies for “jihad.”
Coffman cultivated online relationships with individuals she believed were ISIS facilitators operating in Syria. She put N.A. in contact with a facilitator to assist with his travel and eventual training with ISIS (with the Coffman’s financial assistance for travel) before he was to cross the border into Syria to fight with ISIS. This plan was moving forward when the couple’s relationship deteriorated in early September 2014, and N.A. backed out of the plans. Coffman later communicated with others about her disappointment and expressed how she wished that the plan had succeeded.
According to the plea documents, Coffman admitted that she lied during the ongoing investigation on Nov. 13, 2014, when she told FBI agents that she did not know whether N.A. had talked to anybody else who supported ISIS, and that she did not know anybody N.A. had talked to when, as Coffman well knew, she had previously put N.A. in contact with ISIS fighters and N.A., in turn, had communicated with them to facilitate N.A.’s travel to Turkey to join ISIS.
This case was investigated by FBI’s Richmond Field Office and the Richmond Joint Terrorism Task Force (JTTF). Member agencies of the Richmond JTTF who assisted in this particular investigation include Virginia State Police, Henrico County Police, Chesterfield County Police, Richmond Police, Homeland Security Investigations, U.S. Secret Service, Bureau of Alcohol Tobacco and Firearms and Explosives, Department of State Diplomatic Security Service, Transportation Security Administration and Defense Criminal Investigative Service.
The prosecution is being handled by Assistant U.S. Attorneys Michael Gill and Jessica Aber of the Eastern District of Virginia, and Trial Attorney Annamartine Salick of the National Security Division's Counterterrorism Section.
United States Sues Supply Company and Delaware County Couple for Healthcare FraudRead the Press Release
PHILADELPHIA - The United States filed a civil healthcare fraud lawsuit today against John M. Hastings and Sarah Cintron Hastings, of Drexel Hill, Pennsylvania, and their medical supply company, Diabetic Care Solutions, Inc. The complaint, announced by United States Attorney Zane David Memeger, alleges that the couple operated the company in an attempt to bypass Hastings’ exclusion from the Medicare program.
Hastings was convicted of healthcare-related criminal charges in 1999, resulting in his exclusion from Medicare. During his exclusion, the complaint alleges that Hastings operated the company from store locations in Drexel Hill and Philadelphia, Pennsylvania, and billed claims to Medicare. Although Hastings concealed his role, he controlled the company’s finances, managed its operations, and fitted and sold specialty medical shoes to nursing home residents. The company deposited Medicare payments into bank accounts that Hastings accessed. Sarah Cintron Hastings served as the company’s nominal president, allegedly to avoid detection.
The lawsuit is captioned United States of America v. John M. Hastings, Sarah Cintron Hastings, and Diabetic Care Solutions, Inc. (E.D. Pa.). To resolve the matter, the parties are asking the court to enter a consent judgment that will require defendants to pay $200,000, adhere to the rules of exclusion, and accept additional periods of exclusion.
The public can search the government’s database of excluded providers on a website, http://exclusions.oig.hhs.gov/.
The allegations arose from an investigation led by the United States Department of Health and Human Services Office of Inspector General. The case was handled by Assistant United States Attorney Michael S. Macko.
The United States filed the lawsuit under the False Claims Act. Under the False Claims Act, a person who causes false or fraudulent claims to be submitted to the government for payment is liable for three times the government’s damages, plus civil penalties for each false claim. The allegations against Hastings, Cintron Hastings, and the company are allegations only and not findings of liability.
Two Swansea Men Plead Guilty to $1.6 Million FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Qais Hussein, 44, and Majdi Odeh, 45, both of Swansea, Illinois, pled guilty to a four-count indictment charging that they along with others engaged in a conspiracy from January 2010 through July of 2012, to Unlawfully Acquire Supplemental Nutrition Assistance Program (SNAP) Benefits (formerly known as Food Stamps benefits), Aiding and Assisting in the Preparation and Presentation of False Tax Returns, and Trafficking in Counterfeit Goods.
For the SNAP benefit conspiracy charge, both Hussein and Odeh face up to 5 years in federal prison, up to a $250,000 fine, and three years of supervised release. For the tax fraud counts Hussein and Odeh face up to 3 years in federal prison, up to a $100,000, and one year of supervised release as to each of the two counts. For the trafficking in counterfeit goods charge, Hussein and Odeh face up to 10 years in federal prison, up to a $2,000,000 fine, and three years of supervised release. Both men must also pay a $400 special assessment. Sentencing will be in United States District Court on September 3, 2015, in East St. Louis, Illinois.
During their plea hearing, Hussein and Odeh, brothers, who operated businesses in East St. Louis, Illinois, known as Garden Grill Market, Inc. and Garden Grill Market II, Inc., admitted to conspiring together and with others to fraudulently traffic in and acquire over $1 million dollars in federal SNAP benefits. The prosecution advised the Court that the actual loss to the program was approximately $1.6 million and that full restitution would be sought.
SNAP benefits are similar to United States currency in that SNAP recipients can purchase food from grocery retailers at the face value of their SNAP benefits. In most states, SNAP benefits are provided to recipients on an Electronic Benefits Transfer (EBT) card that is used like a bank Automated Teller Machine (ATM) card. The SNAP recipients in Illinois receive an EBT card known as an "Illinois Link" card. Illinois SNAP recipients can use their Illinois Link card at an authorized retailer in any state.
Hussein and Odeh admitted that as part of the conspiracy, they would use Garden Grill Market Inc. and Garden Grill Market II, Inc., to unlawfully acquire SNAP benefits from customers by offering and unlawfully giving cash payments to those customers in the amount of 50 to 60 percent of the value of the Government SNAP benefits, with Hussein and Odeh keeping the difference. In addition, Hussein and Odeh fraudulently accepted SNAP benefits for ineligible items such as tobacco, cellular phones, and purses/handbags. Hussein and Odeh also admitted to buying Women, Infants and Children (WIC) vouchers by giving cash amounts less than the face value of the voucher.
As to the tax charges, Hussein and Odeh admitted that they had assisted in the preparation of two false 2010 tax returns by underreporting income generated by Garden Grill Market, Inc. and Garden Grill Market II, Inc.
As to the Trafficking in Counterfeit Goods, Hussein and Odeh admitted that from January of 2010, through July 2012 they trafficked in counterfeit goods, including watches, hats, DVDs and other items.
In addition to Hussein and Odeh, the owners of the Garden Grill stores, five employees have also been charged. Elsayed Hassan and Hossam Ahmed were charged along with Hussein and Odeh in the indictment with Conspiracy to Unlawfully Acquire Food Stamps. Albraa K. Sabrah, Alaa K.A. Jaber and Rami M. Abou Amra were all indicted separately and charged with Unauthorized Acquisition of SNAP Benefits. All five employees have also pled guilty.
United States Attorney Stephen R. Wigginton stated, "This successful investigation and prosecution is yet another step in the combined efforts of Federal law enforcement and prosecutors to unmask those who enrich themselves while others in our community who are in desperate need of assistance suffer from reduced benefits because of the fraud that is literally pillaging assistance programs. As I have said before, and it bears repeating, my office, the attorneys who prosecute these cases, and the agents who work tirelessly to investigate them simply will not stop. If you defraud the United States, we will find you, and you will be prosecuted!"
The case was investigated by agents of the U.S. Department of Agriculture – Office of Inspector General, the Internal Revenue Service – Criminal Investigation, and the U.S. Department of Homeland Security – Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
Two Scranton Men Charged with Sex Trafficking of A MinorRead the Press Release
HARRISBURG -The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Scranton men were indicted on April 28, 2015, by a federal grand jury for sex trafficking of a minor and conspiracy to commit sex trafficking of minor and related charges.
According to United States Attorney Peter Smith, the grand jury alleges that Jimmy Cantelmo, age 26, and Mark Matis a/k/a “Koolaid,” age 26, conspired with each other and others to persuade a female minor to engage in prostitution and illegal sexual activity during February through August 2014. The indictment alleges that the defendants and/or their co-conspirators used a cell phone to post advertisements for “escort services” involving the minor female on a website, rented motel rooms in Lackawanna and Luzerne Counties to facilitate the prostitution activities, purchased condoms for the minor to use when engaging in commercial sex acts, and acted as “bodyguards” for the minor during prostitution activities.
James Cantelmo and Matis are formally charged with Conspiracy to Commit Sex Trafficking of a Minor and Sex Trafficking of a Minor as aiders and abettors. Cantelmo is also charged with attempting to commit sex trafficking of a minor on August 26, 2014, and using a means and facility of interstate commerce to attempt to persuade and induce a minor to engage in prostitution on August 26, 2014.
Cantelmo was arrested last week and Matis will be arraigned this morning before U.S. Magistrate Judge Karoline Mehalchick.
The charges stem from an investigation by Homeland Security Investigators and the Pennsylvania State Police.
Each charge is punishable by a mandatory minimum sentence of 10 years in prison and a possible maximum sentence of life in prison.
This case was brought as part of the U.S. Attorney’s Office 2015 Human Trafficking Initiative and 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."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Members of Drug Trafficking Organization Admit Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – Two members of a large-scale drug trafficking organization today admitted conspiring to distribute heroin in Ocean and Monmouth counties, U.S. Attorney Paul J. Fishman announced.
Robert Ketcham, 28, of Bayville, New Jersey, and Kenneth Greenhow, 41, of Asbury Park, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to separate informations charging them each with one count of conspiring to distribute heroin.
In March 2014, 21 alleged members of the “Britt-Young DTO,” a drug trafficking organization named after its leaders, Robert Britt and Rufus Young, were charged by criminal complaint with conspiring to distribute heroin. Of those 21 individuals, 14 have pleaded guilty.
According to documents filed in this case and statements made in court:
Between February 2013 and December 2013, Ketcham conspired with Young and others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO. From October 2013 through March 2014, Greenhow also conspired with Young and others to distribute heroin on behalf of the Britt-Young DTO. Ketcham and Greenhow were collectively responsible for distributing between 60 and 100 grams of heroin.
The narcotics conspiracy charge to which Ketcham and Greenhow pleaded guilty carries a maximum potential penalty of 20 years in prison and $1 million fine. Sentencing for both defendants is scheduled for Aug. 18, 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, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel:
Ketcham: Michael A. Armstrong Esq., Willingboro, New Jersey
Greenhow: Mark G. Davis Esq., Hamilton, New Jersey
Tulare County Woman Arrested for Tax and Investment FraudRead the Press Release
FRESNO, Calif. — Marie E. Sherrill, 54, of Porterville, was arrested today on a 34‑count indictment charging her with wire fraud, money laundering, aiding the preparation of false tax returns, and corruptly interfering with the administration of the internal revenue laws, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sherrill was a registered tax return preparer operating a bookkeeping and tax preparation business in Porterville under the name Sherrill Financial Services. Between January 2011 and December 2014, Sherrill allegedly prepared false tax returns for her clients containing false deductions to maximize their tax refunds, causing an alleged loss to the IRS of $255,901. She allegedly attempted to obstruct IRS audits of her tax-clients and prepared and filed tax returns using someone else’s electronic filing number.
The indictment also alleges that Sherrill used the intimate financial knowledge she gained about her various clients to identify potential victims she could lure into an investment fraud scheme. She allegedly told victims of this scheme that their money would be put into “pooled investments” with the money of other investors, to earn a high rate of return. The money was, in fact, never put into any investment, but was used instead to pay Sherrill’s personal expenses or to make lulling payments to earlier investors, to make them believe their money was earning a profit. The indictment alleges that as a result of this scheme, at least 17 investment victims were defrauded of at least $1.3 million.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
If convicted, Sherrill faces a maximum statutory penalty of 20 years in prison on each count of wire fraud; 10 years in prison on each count of money laundering; and three years in prison on each tax charge. She also faces a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tonawanda Coke to Pay $12 Million in Civil Penalties, Facility Improvements and Environmental Projects to Benefit Tonawanda CommunityRead the Press Release
Under a $12 million settlement with the United States and the state of New York, Tonawanda Coke Corp. will pay $2.75 million in civil penalties, spend approximately $7.9 million to reduce air pollution and enhance air and water quality and spend an additional $1.3 million for environmental projects in the area of Tonawanda, New York. The agreement was announced jointly by Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, Regional Administrator Judith A. Enck for the Environmental Protection Agency (EPA), Commissioner Joseph Martens for the New York State Department of Environmental Conservation (NYSDEC) and Attorney General Eric T. Schneiderman for New York.
Under the consent decree lodged today in federal court in the Western District of New York, Tonawanda Coke must improve its processes, operations and monitoring for coke oven gas leaks, assess key equipment, repair or replace equipment, install new pollution controls and take many additional measures under a prescribed schedule. This work, estimated to cost approximately $7.9 million, will secure significant reductions of benzene, ammonia and particulate matter emissions from the plant, improving air quality in Tonawanda and protecting public health.
“The community that is home to the Tonawanda facility is finally receiving the protections it deserves from its neighbor,” said Assistant Attorney General Cruden. “We are pleased to be joining with the state of New York in this important environmental enforcement action, which holds Tonawanda accountable for its numerous violations of federal and state environmental laws and requires measures to achieve significant reductions in air and water pollution that will benefit Tonawanda residents for years to come.”
The settlement also requires Tonawanda Coke to pay a $1.75 million civil penalty to the United States to resolve violations of the Clean Air Act, the Clean Water Act and the Emergency Planning and Community Right-to-know Act, and pay a $1 million civil penalty to the state of New York, which is a co-plaintiff with the United States. In addition to the state penalty, Tonawanda Coke will pay another $1 million to fund projects that will benefit the environment and the residents of Tonawanda. Additionally, $357,000 will be provided to Ducks Unlimited, a nonprofit organization, to acquire and preserve wetlands. In addition to protecting and enhancing water quality, wetlands reduce flooding, filter pollutants and provide habitat for fish and wildlife.
“Tonawanda Coke has been an environmental outlaw for too long,” said Regional Administrator Enck. “Today’s legal settlement will provide greater public health protections for the people of Western New York. I particularly want to thank the residents of Tonawanda, their elected officials, the Clean Air Coalition of Western New York and the Citizen Science Community Resources who all shined a spotlight on these pollution problems. The community did their own air toxic monitoring, which revealed high levels of pollution. This fine example of citizen science spurred government action to protect the community.”
“For years, Tonawanda Coke recklessly ignored clean air, clean water and community right-to-know laws,” Attorney General Schneiderman said. “In doing so, the company ignored both its legal responsibilities and its responsibilities to the health and safety of the residents of the surrounding communities. With this settlement – which requires the company to clean up its operations and pay New York $2 million for penalties and local environment improvement projects – we are holding Tonawanda Coke accountable for its actions.”
“I would like to acknowledge the good work done by everyone involved in this joint state and federal enforcement action that has resulted in significant operational changes at the Tonawanda Coke facility and will continue to improve the air quality in the Tonawanda community,” said Commissioner Martens. “Importantly, a portion of the civil penalty assessed under the consent decree will be used to fund environmental benefit projects that will further improve public health and the environment in Tonawanda.”
The company’s violations of the Clean Air Act resulted in releases of coke oven gas, which contains benzene and other harmful chemicals. Tonawanda failed to install air pollution controls on its coke ovens, failed to properly monitor equipment for coke oven gas leaks, failed to conduct required annual maintenance inspections of emission controls and proper operations and maintenance and failed to complete multiple required reports among other violations. Exposure to benzene and other hazardous air pollutants found in coke oven gas can significantly harm human health and excessive exposure to benzene is a known cause of cancer.
Under the terms of the settlement, Tonawanda Coke is currently installing coke oven battery pollution controls to limit coke oven gas emissions from the battery. These controls are known as “pushing controls,” and are estimated to reduce particulate matter by up to 162 tons per year once fully operational.
Among the other actions that Tonawanda Coke is required to take are:
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Repair or replace equipment in the by-products area.
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Install and operate pushing controls at the coke oven battery by the end of 2015.
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Install a continuous monitoring system on the battery stack.
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Comply with the particulate emission limits at the bag house stack.
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Improve coke battery work practices, operations and maintenance.
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Expand and improve the facility’s leak detection and repair program.
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Adopt a plan to control dust that is generated by its operations at the facility and reduce particulate emissions.
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Undergo a comprehensive evaluation by a third-party to assess its furnace coke production, coke oven walls and other key elements.
In addition, Tonawanda Coke will conduct additional auditing of its operations to implement necessary and appropriate changes that may arise from the third party audit.
Tonawanda Coke’s Clean Water Act violations include discharging wastewater and other prohibited pollutants in its stormwater discharges to the Niagara River, discharging excessive amounts of cyanide, ammonia and naphthalene in its process wastewater and allowing process water holding tanks to decay, pipes to leak and spill containment structures to become ineffective. Tonawanda Coke’s illegal discharges and other Clean Water Act violations threatened human health and the ecology and economy of the Niagara River and Lake Ontario.
While Tonawanda Coke has largely resolved the Clean Water Act violations identified in the complaint, under the settlement, Tonawanda Coke’s facility will be subject to an independent, third-party audit of its Clean Water Act compliance and will be required to implement all necessary recommendations for improving facility operations. EPA’s oversight of the facility’s Clean Water Act compliance will be ongoing.
Under the Emergency Planning and Community Right-to-Know Act, Tonawanda Coke failed to report that it manufactured benzene and ammonia in quantities that exceeded the 25,000 pound per year reporting threshold. Companies that manufacture, process, import or otherwise use chemicals above a certain amount must annually submit chemical inventory information to local authorities and to the state, giving detailed information about the chemicals they have on location. Tonawanda Coke has agreed to submit several years’ worth of information about its use and emissions of ammonia and benzene under this law.
The proposed consent decree was filed in federal court in the Western District of New York and will be subject to a 30 day public commenting period following its publication in the federal registry. The consent decree can be viewed at http://www.justice.gov/enrd/Consent_Decrees.html
For more information about EPA’s actions at Tonawanda Coke and related legal documents, visit http://www.epa.gov/region02/capp/tonawanda.html.
Follow EPA Region 2 on Twitter at http://twitter.com/eparegion2 and visit our Facebook page, http://www.facebook.com/eparegion2.
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Tonawanda Coke to Pay $12 Million in Civil Penalties, Facility Improvements and Environmental Projects to Benefit Tonawanda CommunityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
WASHINGTON – Under a $12 million settlement with the United States and the state of New York, Tonawanda Coke Corp. will pay $2.75 million in civil penalties, spend approximately $7.9 million to reduce air pollution and enhance air and water quality and spend an additional $1.3 million for environmental projects in the area of Tonawanda, New York. The agreement was announced jointly by Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, Regional Administrator Judith A. Enck for the Environmental Protection Agency (EPA), Commissioner Joseph Martens for the New York State Department of Environmental Conservation (NYSDEC) and Attorney General Eric T. Schneiderman for New York.
Under the consent decree lodged today in federal court in the Western District of New York, Tonawanda Coke must improve its processes, operations and monitoring for coke oven gas leaks, assess key equipment, repair or replace equipment, install new pollution controls and take many additional measures under a prescribed schedule. This work, estimated to cost approximately $7.9 million, will secure significant reductions of benzene, ammonia and particulate matter emissions from the plant, improving air quality in Tonawanda and protecting public health.
“The community that is home to the Tonawanda facility is finally receiving the protections it deserves from its neighbor,” said Assistant Attorney General Cruden. “We are pleased to be joining with the state of New York in this important environmental enforcement action, which holds Tonawanda accountable for its numerous violations of federal and state environmental laws and requires measures to achieve significant reductions in air and water pollution that will benefit Tonawanda residents for years to come.”
The settlement also requires Tonawanda Coke to pay a $1.75 million civil penalty to the United States to resolve violations of the Clean Air Act, the Clean Water Act and the Emergency Planning and Community Right-to-know Act, and pay a $1 million civil penalty to the state of New York, which is a co-plaintiff with the United States. In addition to the state penalty, Tonawanda Coke will pay another $1 million to fund projects that will benefit the environment and the residents of Tonawanda. Additionally, $357,000 will be provided to Ducks Unlimited, a nonprofit organization, to acquire and preserve wetlands. In addition to protecting and enhancing water quality, wetlands reduce flooding, filter pollutants and provide habitat for fish and wildlife.
“Tonawanda Coke has been an environmental outlaw for too long,” said Regional Administrator Enck. “Today’s legal settlement will provide greater public health protections for the people of Western New York. I particularly want to thank the residents of Tonawanda, their elected officials, the Clean Air Coalition of Western New York and the Citizen Science Community Resources who all shined a spotlight on these pollution problems. The community did their own air toxic monitoring, which revealed high levels of pollution. This fine example of citizen science spurred government action to protect the community.”
“For years, Tonawanda Coke recklessly ignored clean air, clean water and community right-to-know laws,” Attorney General Schneiderman said. “In doing so, the company ignored both its legal responsibilities and its responsibilities to the health and safety of the residents of the surrounding communities. With this settlement – which requires the company to clean up its operations and pay New York $2 million for penalties and local environment improvement projects – we are holding Tonawanda Coke accountable for its actions.”
“I would like to acknowledge the good work done by everyone involved in this joint state and federal enforcement action that has resulted in significant operational changes at the Tonawanda Coke facility and will continue to improve the air quality in the Tonawanda community,” said Commissioner Martens. “Importantly, a portion of the civil penalty assessed under the consent decree will be used to fund environmental benefit projects that will further improve public health and the environment in Tonawanda.”
The company’s violations of the Clean Air Act resulted in releases of coke oven gas, which contains benzene and other harmful chemicals. Tonawanda failed to install air pollution controls on its coke ovens, failed to properly monitor equipment for coke oven gas leaks, failed to conduct required annual maintenance inspections of emission controls and proper operations and maintenance and failed to complete multiple required reports among other violations. Exposure to benzene and other hazardous air pollutants found in coke oven gas can significantly harm human health and excessive exposure to benzene is a known cause of cancer.
Under the terms of the settlement, Tonawanda Coke is currently installing coke oven battery pollution controls to limit coke oven gas emissions from the battery. These controls are known as “pushing controls,” and are estimated to reduce particulate matter by up to 162 tons per year once fully operational.
Among the other actions that Tonawanda Coke is required to take are: • Repair or replace equipment in the by-products area.
• Install and operate pushing controls at the coke oven battery by the end of 2015.
• Install a continuous monitoring system on the battery stack.
• Comply with the particulate emission limits at the bag house stack.
• Improve coke battery work practices, operations and maintenance.
• Expand and improve the facility’s leak detection and repair program.
• Adopt a plan to control dust that is generated by its operations at the facility and reduce particulate emissions.
• Undergo a comprehensive evaluation by a third-party to assess its furnace coke production, coke oven walls and other key elements.
In addition, Tonawanda Coke will conduct additional auditing of its operations to implement necessary and appropriate changes that may arise from the third party audit.
Tonawanda Coke’s Clean Water Act violations include discharging wastewater and other prohibited pollutants in its stormwater discharges to the Niagara River, discharging excessive amounts of cyanide, ammonia and naphthalene in its process wastewater and allowing process water holding tanks to decay, pipes to leak and spill containment structures to become ineffective. Tonawanda Coke’s illegal discharges and other Clean Water Act violations threatened human health and the ecology and economy of the Niagara River and Lake Ontario.
While Tonawanda Coke has largely resolved the Clean Water Act violations identified in the complaint, under the settlement, Tonawanda Coke’s facility will be subject to an independent, third-party audit of its Clean Water Act compliance and will be required to implement all necessary recommendations for improving facility operations. EPA’s oversight of the facility’s Clean Water Act compliance will be ongoing.
Under the Emergency Planning and Community Right-to-Know Act, Tonawanda Coke failed to report that it manufactured benzene and ammonia in quantities that exceeded the 25,000 pound per year reporting threshold. Companies that manufacture, process, import or otherwise use chemicals above a certain amount must annually submit chemical inventory information to local authorities and to the state, giving detailed information about the chemicals they have on location. Tonawanda Coke has agreed to submit several years’ worth of information about its use and emissions of ammonia and benzene under this law.
The proposed consent decree was filed in federal court in the Western District of New York and will be subject to a 30 day public commenting period following its publication in the federal registry. The consent decree can be viewed at http://www.justice.gov/enrd/Consent_Decrees.html
For more information about EPA’s actions at Tonawanda Coke and related legal documents, visit http://www.epa.gov/region02
Follow EPA Region 2 on Twitter at http://twitter.com/eparegion2 and visit our Facebook page, http://www.facebook.com/eparegion2.
Three Dallas Residents Indicted on Bankruptcy-Related ChargesRead the Press Release
DALLAS — A federal grand jury in Dallas returned two unrelated indictments last week charging three Dallas residents with felony offenses stemming from filed bankruptcy petitions, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
In one indictment, Diana Yamille Hernandez, 41, is charged with one count of misrepresentation of a Social Security number and one count of making false statements under penalty of perjury. Her co-defendant, Erica Soria, a/k/a “Erica Soria Fisher, 39, is charged with one count of making false statements.
According to that indictment, in August 2011, Hernandez retained a law firm, identified in the bankruptcy petition as the Allmand Law Firm of Dallas, to help her file for bankruptcy. Soria, an employee of that firm, assisted Hernandez in preparing and processing the bankruptcy documents. Hernandez told Soria that she was using a false Social Security number and possessed a fraudulent Social Security card. Both Hernandez and Soria concealed the existence of this false Social Security number in documents filed with by the law firm with the bankruptcy court.
Hernandez made her initial appearance in federal court this afternoon; Soria made her initial appearance on Friday. U.S. Magistrate Judge Renee Harris Toliver released both on bond.
In a separate, unrelated indictment, Al Hakeem Muhammad, II, 26, is charged with one count of misrepresentation of a Social Security number. The indictment alleges that he used a Social Security number that he knew was not his when he completed a credit application to obtain a lease on an apartment located in Victory Park in Dallas.
That indictment stems from a federal criminal complaint filed last month against Muhammad. According to that complaint, Muhammad also stated on that credit application that he had never filed for bankruptcy protection, when, in fact, Muhammad personally filed for bankruptcy in May 2013 in the Eastern District of Texas and in July 2012, October 2012, and January 2013 in the Northern District of Texas. In addition, according to that complaint, in March 2015, Muhammad also made a false statement, under penalty of perjury, in relation to a bankruptcy filing he made when he misstated on that filing that the current value of real estate he owned in Detroit, Michigan, was $77,000, when it fact, in 2014, it was valued for tax purposes at $10,200. He also falsely testified to that in an April 2015 bankruptcy hearing.
Muhammad made his initial appearance in federal court on the complaint on April 28. His arraignment is set for May 26, 2014.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. The maximum statutory penalty for each of the offenses charged in these two indictments is five years in federal prison and a $250,000 fine.
These cases represent felony prosecutions of bankruptcy-related crimes generated by the recent Bankruptcy Fraud Initiative within the Northern District of Texas. Since February 2013, 12 defendants have been charged with various felony offenses. Six defendants have entered guilty pleas and five have been sentenced. One defendant is set for trial, and one defendant remains in fugitive status with outstanding arrest warrants.
The FBI investigated the Muhammad case, and the Social Security Administration Office of the Inspector General investigated the Hernandez/Soria case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Statement by Attorney General Lynch on Officer Shootings in Hattiesburg, MississippiRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the death of two officers in Hattiesburg, Mississippi:
“The shocking assault on law enforcement officers in Hattiesburg, Mississippi, struck at the heart of that great city. The Department of Justice stands ready to offer any possible aid to the Hattiesburg community as they investigate this appalling incident. And we will continue to do all that we can to protect our officers across the country and support all those who wear the badge.
“Officer Benjamin Deen and Officer Liquori Tate were committed and courageous public safety officials, dedicated to their community and devoted to their mission. They exemplified the very best that our country has to offer. And as we go forward, the Department of Justice intends to honor their service and their sacrifice by fighting for the values they protected every day, and defending the American people they were proud to serve.
“Their loss is made even more tragic by the fact that, on the day they were killed this past Saturday, the country began observing Police Week – a time when we pause to remember and honor the more than 20,000 law enforcement officers who have been killed in the line of duty. The murder of these young men is a devastating reminder that the work our brave police officers perform every day is extremely dangerous, profoundly heroic, and deeply deserving of our unequivocal support. All Americans owe these courageous citizens a debt of gratitude. The Department of Justice stands in solidarity with our brothers and sisters at every level of law enforcement as we mourn this most recent loss.”
Sex Offenders Sentenced to 390 Months and 240 Months in Federal PrisonRead the Press Release
DES MOINES, IA – On Friday, May 8, 2015, Bradley Shane Jensen, age 42, of Panora, Iowa, was sentenced to 390 months in federal prison by U.S. District Court Judge Stephanie Rose on charges of sexual exploitation of a child and production of child pornography, announced United States Attorney Nicholas A. Klinefeldt. Bradley Jensen’s now-estranged wife, Jennifer Marie Jensen, age 37, who most recently resided in Panora, Guthrie Center, and Ft. Dodge, Iowa, was sentenced by Judge Rose to 240 months in prison for receipt of child pornography.
The Jensens were involved in the production, receipt, and possession of child pornography. The couple jointly produced images of Bradley Jensen sexually abusing a three- month-old baby, and he produced child pornography involving a six-year-old girl, whom they both sexually abused. Testimony at sentencing established the pair sexually abused other minors that they did not photograph.
Bradley Jensen was convicted in 1999 in Dallas County, Iowa, for engaging in lascivious acts with a minor, initially receiving a suspended sentence and two years of probation, before he was briefly incarcerated for a probation violation. He was also convicted in Dallas County, Iowa, in 2000 for failing to register as a sex offender, and was sentenced to two years’ imprisonment, to be served concurrently with his sentence on the probation violation.
This case was a joint federal-state-local effort, investigated by the Guthrie County Sheriff’s Office, the Dallas County Sheriff’s Office, the Iowa Division of Criminal Investigation, the Iowa Internet Crimes Against Children Task Force, the U.S. Marshal’s Service, the Guthrie Center, Iowa, Police Department, the Panora, Iowa, Police Department, and the Regional Child Protection Center at Blank Children’s Hospital in Des Moines.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s "Project Safe Childhood" initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Serial Bank Robber Sentenced to 78 Months in PrisonRead the Press Release
A former Everett, Washington resident was sentenced today in U.S. District Court in Tacoma to 78 months in prison for bank robbery, announced U.S. Attorney Annette L. Hayes. ANTHONY JAMES MARTINIS, 42, admitted in February 2015 that he robbed ten banks across four western states. At sentencing U.S. District Judge Benjamin H. Settle said, “this was a traumatic event . . . tellers don’t know whether you are armed or not and it lives with them for the rest of their lives.”
MARTINIS was arrested November 3, 2014 in Oklahoma City, Oklahoma after members of the public provided his identity to law enforcement after the surveillance photos from a series of bank robberies were publicized. The string of bank robberies began September 17, 2014 at the Fibre Federal Credit Union in Longview, Washington. In each robbery MARTINIS handed the teller a note demanding all the money from the till. On September 23, 2014, MARTINIS robbed the Chase Bank in Yakima, Washington. Three days later MARTINIS robbed the Umpqua Bank in Lacey, Washington. The fourth robbery occurred on October 6, 2014 when the Chase Bank in Milton, Washington was targeted. Ten days later, MARTINIS had moved on to Oregon, robbing the Umpqua Bank branch in Eugene on October 16, 2014. That same day MARTINIS robbed the Wells Fargo Bank branch in Salem, Oregon. The next day he robbed the Wells Fargo Bank branch in Cottage Grove, Oregon.
The robbery spree continued in Washington with the robbery of the US Bank branch in Vancouver on October 22, 2014. The next day MARTINIS robbed the US Bank branch in Boise, Idaho. The final robbery MARTINIS admits committing was the October 25, 2014 robbery of America First Credit Union in Roy, Utah.
MARTINIS was ordered to pay $17,683 in restitution to the victim banks.
The case was investigated by the FBI with significant assistance from the Longview Police Department and the U.S. Marshals Service. The case was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Sedgwick Man Sentenced to 10 Years for Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that John Tapley, 58, of Sedgwick, Maine, was sentenced today in U.S District Court by Judge John A. Woodcock, Jr. to 10 years in prison and 10 years of supervised release for possession of child pornography. He pleaded guilty to the charge on December 29, 2014.
Court records and proceedings reveal that in January of 2013, Tapley brought his laptop computer to a computer repair shop for service. A service technician found sexually suggestive images of prepubescent girls on the computer and reported it to the police. Law enforcement agents obtained a search warrant for the computer and found images and videos of child pornography.
Tapley faced an enhanced sentence because of two prior Maine Superior Court convictions for unlawful sexual contact with minors.
The investigation was conducted by the Hancock County Sheriff’s Office, the Federal Bureau of Investigation, the Maine State Police Computer Crimes Unit, and the Ellsworth Police Department.
Schuele Boys Gang Associate Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that James Hicks, 45, of Buffalo, NY, pleaded guilty to conspiracy to distribute cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that as an associate of the Schuele Boys Gang, the defendant purchased cocaine from co-defendant Michael Robertson. Hicks then repackaged the cocaine into smaller amounts for re-sale in the Buffalo area.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Hicks was arrested along with 15 other Schuele Boys Gang members and associates in July 2014. He is the third to be convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately. Aaron Glenn and Demario Robbins pleaded guilty on March 26 and March 27, 2015 respectively.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
While Tonawanda Coke has largely resolved the Clean Water Act violations identified in the complaint, under the settlement, Tonawanda Coke’s facility will be subject to an independent, third-party audit of its Clean Water Act compliance and will be required to implement all necessary recommendations for improving facility operations. EPA’s oversight of the facility’s Clean Water Act compliance will be ongoing.
Under the Emergency Planning and Community Right-to-Know Act, Tonawanda Coke failed to report that it manufactured benzene and ammonia in quantities that exceeded the 25,000 pound per year reporting threshold. Companies that manufacture, process, import or otherwise use chemicals above a certain amount must annually submit chemical inventory information to local authorities and to the state, giving detailed information about the chemicals they have on location. Tonawanda Coke has agreed to submit several years’ worth of information about its use and emissions of ammonia and benzene under this law.
The proposed consent decree was filed in federal court in the Western District of New York and will be subject to a 30 day public commenting period following its publication in the federal registry. The consent decree can be viewed at http://www.justice.gov/enrd/Consent_Decrees.html
For more information about EPA’s actions at Tonawanda Coke and related legal documents, visit http://www.epa.gov/region02
Follow EPA Region 2 on Twitter at http://twitter.com/eparegion2 and visit our Facebook page, http://www.facebook.com/eparegion2.Schenectady Man Pleads Guilty to Securities Fraud, Mail Fraud and Tax ChargesRead the Press Release
Scott T. Valente, 58, of Schenectady, New York, pleaded guilty today in Albany before Chief U.S. District Judge Gary L. Sharpe to one count of securities fraud, one count of mail fraud and one count of obstructing and impeding the due administration of the Internal Revenue laws, announced U.S. Attorney Richard S. Hartunian, Special Agent in Charge Shantelle P. Kitchen for the New York Field Office’s Internal Revenue Service (IRS) Criminal Investigation, and Special Agent in Charge Andrew W. Vale for the Albany Division’s Federal Bureau of Investigation (FBI). Valente was released pending his sentencing, scheduled for September 8, 2015, at 11:00 a.m. in Albany, New York. Valente faces up to 20 years of imprisonment, a fine of $5.255 million, supervised release for three years, restitution, a money judgment of $10,555,954.27 and forfeiture of condominiums at River Oaks Golf and Tennis Resort II, Myrtle Beach, South Carolina, and Jackson Gore Road Adams House, Ludlow, Vermont.
During the plea hearing, Valente admitted that between December 2010 and June 16, 2014, Valente falsely inflated rates of return for his investment company, the ELIV Group LLC (ELIV). During this time, ELIV raised more than $10.5 million from more than 100 investors. In written materials and investor account statements provided to ELIV investors, Valente made false claims about annual investment returns. Specifically, he claimed that ELIV had annual investment returns of 36.38 percent for 2010, 48.27 percent for 2011, 44.56 percent for 2012 and 45.11 percent for 2013 when ELIV actually lost money every year and lost more than $1.2 million by the end of April 2014. Valente also paid himself more than $2.2 million in unauthorized management fees which he used to enrich himself through cash withdrawals, personal credit card payments and the purchases of real estate, jewelry, home improvements and liquor.
Valente falsely represented to more than 30 ELIV investors that he and his company were authorized to accept, hold and manage individual retirement accounts (IRA). In reality, neither Valente nor ELIV had that authorization. To prevent the IRS from learning that he had improperly accepted, held and managed IRA accounts, Valente altered a legitimate quarterly ELIV investment statement to make it appear as though ELIV had received an investor’s purported IRA rollover investment and was holding that investment as an IRA. He then caused that altered statement to be submitted to the IRS.
At the time ELIV ceased operations, approximately $2.4 million of the more than $10 million dollars of investor principal that Valente had received from investors during ELIV’s operational period had been returned to investors with the false representations that these payments were a return of principal or a distribution of profits. Valente knew that the very small profits earned were far less than those payments.
“Valente made false statements to investors to persuade them to part with their hard earned money so he could line his own pockets with millions of dollars and submitted false documents to the Internal Revenue Service to cover his tracks,” said U.S. Attorney Hartunian. “We will continue to pursue aggressively those who use investment fraud to fleece folks of their savings and retirement money.”
U.S. Attorney Hartunian thanked IRS-Criminal Investigation and the FBI for working with the U.S. Attorney’s Office to hold Valente accountable for his fraud.
“Through his representations that he and ELIV were authorized to accept, hold and manage IRA accounts, Mr. Valente made the Internal Revenue Service an unwilling part of his investment fraud scheme, for which he is now being held accountable,” said Special Agent in Charge Kitchen for the IRS. “Fortunately, the partnership of IRS-Criminal Investigation, the U.S. Attorney’s Office and the FBI was successful in preventing his victims from sustaining additional losses and protecting potential investors from harm.”
“These schemes and other securities related frauds have a devastating impact on the victims,” said Special Agent in Charge Vale for the FBI. “The FBI is committed to working with our law enforcement partners to protect investor confidence in the U.S. financial markets.”
This case was investigated by the Internal Revenue Service - Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation. This case is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Schenectady Man Pleads Guilty to Securities Fraud, Mail Fraud, and Tax ChargesRead the Press Release
ALBANY, NEW YORK – SCOTT T. VALENTE, age 58, of Schenectady, New York, pled guilty today in Albany before Chief United States District Judge Gary L. Sharpe to one count of securities fraud, one count of mail fraud, and one count of obstructing and impeding the due administration of the Internal Revenue laws, announced United States Attorney Richard S. Hartunian, Special Agent-in-Charge Shantelle P. Kitchen, Internal Revenue Service, Criminal Investigation, New York Field Office, and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. VALENTE was released pending his sentencing, scheduled for September 8, 2015, at 11:00 a.m. in Albany. VALENTE faces up to twenty years of imprisonment, a fine of $5,255,000, supervised release for three years, restitution, a money judgment of $10,555,954.27, and forfeiture of condominiums at River Oaks Golf and Tennis Resort II, Myrtle Beach, South Carolina, and Jackson Gore Road Adams House, Ludlow, Vermont.
During the plea hearing, VALENTE admitted that:
Between December 2010 and June 16, 2014, VALENTE falsely inflated rates of return for his investment company, The ELIV Group, LLC ("ELIV"). During this time, ELIV raised more than $10.5 million from more than 100 investors. In written materials and investor account statements provided to ELIV investors, VALENTE made false claims about annual investment returns. Specifically, he claimed that ELIV had annual investment returns of 36.38% for 2010, 48.27% for 2011, 44.56% for 2012, and 45.11% for 2013 when ELIV actually lost money every year and lost more than $1.2 million by the end of April 2014. VALENTE also paid himself more than $2.2 million in unauthorized management fees which he used to enrich himself through cash withdrawals, personal credit card payments, and the purchases of real estate, jewelry, home improvements, and liquor.
VALENTE falsely represented to more than 30 ELIV investors that he and his company were authorized to accept, hold, and manage individual retirement accounts ("IRAs"). In reality, neither VALENTE nor ELIV had that authorization. To prevent the IRS from learning that he had improperly accepted, held, and managed IRA accounts, VALENTE altered a legitimate quarterly ELIV investment statement to make it appear as though ELIV had received an investor’s purported IRA rollover investment and was holding that investment as an IRA. He then caused that altered statement to be submitted to the IRS.
At the time ELIV ceased operations, approximately $2.4 million of the more than $10 million dollars of investor principal that VALENTE had received from investors during ELIV’s operational period had been returned to investors with the false representations that these payments were a return of principal or a distribution of profits. VALENTE knew that the very small profits earned were far less than those payments.
U.S. Attorney Hartunian said, "VALENTE made false statements to investors to persuade them to part with their hard earned money so he could line his own pockets with millions of dollars, and submitted false documents to the Internal Revenue Service to cover his tracks. We will continue to pursue aggressively those who use investment fraud to fleece folks of their savings and retirement money." U.S. Attorney Hartunian thanked IRS-Criminal Investigation and the FBI for working with the U.S. Attorney’s Office to hold VALENTE accountable for his fraud.
IRS-CI Special Agent-in-Charge Shantelle P. Kitchen said, "Through his representations that he and ELIV were authorized to accept, hold and manage IRA accounts, Mr. Valente made the Internal Revenue Service an unwilling part of his investment fraud scheme, for which he is now being held accountable. Fortunately, the partnership of IRS-Criminal Investigation, the U.S. Attorney’s Office and the FBI was successful in preventing his victims from sustaining additional losses and protecting potential investors from harm."
"These schemes and other securities related frauds have a devastating impact on the victims," said FBI Special Agent-in-Charge Andrew W. Vale. "The FBI is committed to working with our law enforcement partners to protect investor confidence in the U.S. financial markets."
This case was investigated by the Internal Revenue Service - Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Rick Belliss.
Portland Man Sentenced to Six Years on Child Pornography ChargesRead the Press Release
Contact: Benjamin M. Block
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Anthony Thea, 20, of Portland, Maine, was sentenced in U.S. District Court by Judge Jon D. Levy to six years in prison, to be followed by five years of supervised release for transportation and possession of child pornography. Thea was also ordered to pay $1,500 in restitution. He pleaded guilty on January 20, 2015.
According to court records, in August 2014, an undercover federal agent identified a computer later traced to Thea making images of child pornography available for download via a peer-to-peer file sharing program. On October 9, 2014, federal agents executed a search warrant at an apartment in South Portland where Thea occasionally stayed and seized a laptop. Thea admitted owning the laptop and using a peer-to-peer file sharing program to download images of child pornography. He also said that he had used his cellular telephone to make video recordings of minors in public restrooms and saved them on his computer. A forensic analysis of the laptop’s hard drive revealed 2,680 still images and 903 videos of child pornography and about 80 digital recordings of minor males urinating in restrooms that Thea recorded between June 2011 and May 2013 without the knowledge or consent of the victims.
“HSI investigations involving child exploitation fall under Operation Predator, and this case is a clear demonstration of why we use the term predator for those who seek to victimize the innocent,” said Bruce Foucart, special agent in charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New England. “We will continue to work with our law enforcement partners across the state of Maine, and at the U.S. Attorney’s Office to aggressively target criminals who prey on the most vulnerable members of society.”
U.S. Attorney Delahanty commended the work of HSI noting that: “These cases are very difficult because of the subject matter and the necessity to link the defendant to the disturbing images and on-line conduct.”
The investigation was conducted by HSI, with the assistance of the South Portland Police Department. 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Police Week RecognitionRead the Press Release
PRESS RELEASE
Indianapolis – During the week of May 10, 2015, our nation celebrates National Police Week and commemorates police officers from around the country recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. As the United States Attorney for the Southern District of Indiana, I want to acknowledge the unselfish work performed by agents, troopers, deputies and officers from Gary to Evansville and Terre Haute to Richmond for the work that they do. Over the course of my 21year career as a federal prosecutor in Indiana, I have been privileged to work closely with truly outstanding public safety officials and I know their work is extremely dangerous and profoundly heroic.
The fact that the work these men and women perform every day is occasionally not fully appreciated, disturbs me. In 2014, 127 officers lost their lives nationwide; four in the state of Indiana. Already six officers have made the ultimate sacrifice in May of this year alone. The trend is unnerving and I pray for these officers daily. These startling numbers serve as a devastating reminder that our nation’s police officers put their life on the line every day, oftentimes for people they have never met. Their exemplary work is the foundation of trust that must exist between law enforcement and the communities they serve.
As a state, we must never lose sight of the immense and unyielding difficulties that are inherent in the law enforcement profession. When others run from danger, our law enforcement professionals run bravely toward it and face the ugliness that sometimes follows. Like any organization, our officers are not flawless, 99% of them perform their duties professionally, every day without so much as a whimper of hesitation using only the force justified by the situation.
I am asking everyone who comes in contact with an officer this week to thank them and learn to appreciate the job they do. There are many challenges that our communities and neighborhoods face and our society expects police officers to have the ability to solve every single one of them. Those challenges cannot be met by law enforcement alone. Protecting our community is everyone’s responsibility. We cannot expect safe communities without supporting them. A police department is only as effective as the community that supports it. They cannot perform without strong support from all of us.
We properly expect our officers to be diplomats yet warriors, kind yet tough, confident yet humble and make instant decisions which we lawyers take months to analyze. It is a thankless job and one that few are equipped to handle. Please join me this week in recognizing their work and being truly grateful for their dedicated service.
Josh J. Minkler
United States Attorney
Southern District of Indiana
Phoenix Drug Trafficker Sentenced to 25 Years in PrisonRead the Press Release
PHOENIX – Today, Gilberto Martinez, 35, of Phoenix, Ariz., was sentenced by U.S. District Judge Susan R. Bolton to 25 years’ imprisonment, followed by 10 years’ supervised release. Martinez was found guilty by a federal jury on Jan. 15, 2015, of five felony charges that included possession with intent to distribute cocaine, marijuana, and methamphetamine, and possession of firearms in furtherance of a drug trafficking crime.
The evidence showed that at 2:45 a.m. on March 31, 2014, the Martinez residence, a drug stash house in the 4800 block of East Cambridge, was the subject of a violent home invasion by armed suspects. During the home invasion, a gunshot occurred as Martinez struggled with one of the home invaders for control of a firearm. The home invaders then fled the residence, and Martinez quickly placed a portion of his drugs, firearms, and cash in a truck. As Officers of the Phoenix Police Department were arriving on the scene, Martinez drove away in the truck and led Officers in police vehicles and a helicopter on a high speed chase. Martinez abandoned the truck in the 3700 block of West Sheridan and was taken into custody when found hiding outside a nearby residence. In the ensuing investigation, police and federal agents seized from Martinez ten firearms, two sets of ballistic armor, 6.7 kilograms of cocaine, 90 kilograms of marijuana, 180 grams of methamphetamine, and over $420,000.00 in cash. Martinez is an eight-time convicted felon, including two prior convictions for drug dealing in the Phoenix area.
The investigation in this case was conducted by the Phoenix Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Drug Enforcement Administration. The prosecution was handled by Michael Lee and Todd Allison, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-14-0495-PHX-SRB
RELEASE NUMBER: 2015-034_Martinez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Pensacola Man Charged with Producing Child PornographyRead the Press Release
PENSACOLA, FLORIDA – A federal grand jury returned an indictment charging Paul R. Bloom, 31, of Crestview, with production, receipt, distribution, and possession of child pornography. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Count One of the indictment alleges that, in February 2015, Bloom knowingly used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction. Count Two alleges that, between March 2012 and April 2015, Bloom received, and attempted to receive, images and videos containing child pornography. Count Three alleges that, between February and March 2015, Bloom knowingly distributed, and attempted to distribute, images and videos of child pornography. Finally, Count Four alleges that, in April 2015, Bloom knowingly possessed material containing images and videos of child pornography involving a prepubescent minor and a minor under age 12.
Bloom was arraigned in federal court today before Chief United States Magistrate Judge Elizabeth M. Timothy at the United States Courthouse, in Pensacola, Florida. The trial is scheduled for July 6, 2015.
The case is being investigated by the United States Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Pensacola Police Department, Florida Department of Law Enforcement, and the other agencies that are part of the North Florida Internet Crimes Against Children Task Force, whose joint investigation led to the charges in this case. It is being prosecuted by Assistant United States Attorney David L. Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]One Individual Indicted and Arrested for Distribution and Sale of Meat and Poultry Products Without InspectionRead the Press Release
SAN JUAN, P.R. – On May 7, 2015, a Federal grand jury returned a three count indictment charging Daniel E. Martínez-Rivera, President and the person responsible for the operations of Productos Dany, Inc., for distribution and sale of meat and poultry products without inspection, and for refusing to provide a duly authorized representative of the Secretary of Agriculture access to records, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Martínez-Rivera was arrested on May 8. The US Department of Agriculture, Food Safety and Inspection Service (USDA FSIS) is in charge of the investigation.
Beginning in August 2011, and continuing up to and until the return of the instant Indictment, the defendant Daniel E. Martínez-Rivera, offered for sale and sold in commerce meat and poultry products required to be inspected and passed that were not so inspected and passed. On or about September 4, 2013, the defendant, with reasonable time and notice refused to provide a duly authorized representative of the Secretary of Agriculture access to records.
“We have not received reports of adverse reactions due to consumption of these products. Anyone concerned about a reaction should contact a healthcare provider,” stated Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
The case is being investigated by the US Department of Agriculture and prosecuted by Assistant U.S. Attorney Mariana Bauzá-Almonte. An indictment contains only charges and is not evidence of guilt. The defendant is presumed to be innocent unless and until proven guilty.
Omaha Man Convicted of Conspiracy to Distribute Counterfeit Identification DocumentsRead the Press Release
United States Attorney Deborah R. Gilg announced Pedro Pani De La Cruz, age 46, of Omaha, Nebraska, was sentenced after having previously pled guilty to conspiracy to distribute counterfeit identification documents. The Honorable Joseph F. Bataillon sentenced De La Cruz to 24 months imprisonment. In the event he is not deported to Mexico when he completes his prison term, he will serve a 3 year term of supervised release.
From December 13, 2013, through July 30, 2014, De La Cruz was manufacturing and selling counterfeit Social Security cards, Lawfully Admitted Permanent Resident cards and Nebraska identification cards. Law enforcement agents searched his residence and found a computer containing thousands of fraudulent documents.
Felipe Moncado was used as a middleman who would collect money from the customers, give it to De La Cruz, and then deliver the documents from De La Cruz back to the customer. Moncado sold counterfeit documents to two different confidential informants. He previously pled guilty to the conspiracy charge and two counts of unlawful transfer of a document. He had served 230 days in prison and was given credit for time served.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations.
North Carolina Man Pleads Guilty to Filing False Claims for Tax Refunds and Identity TheftRead the Press Release
A Raleigh, North Carolina, man pleaded guilty today to conspiracy to file false claims and identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.
According to court documents and court statements, Christian Rhodes and other co-conspirators recruited individuals to provide their personal information, which Rhodes and his co-conspirators used to prepare false federal individual income tax returns. The tax returns that Rhodes prepared and filed contained false wages, income tax withholdings and deductions, resulting in the false claims for tax refunds. Rhodes also used stolen identities to file false claims for tax refunds, and directed the Internal Revenue Service (IRS) to deposit these refunds electronically into bank accounts that he controlled, as well as accounts in the names of and controlled by third-party taxpayers. The tax loss as a result of these false claims is more than $3 million.
Rhodes faces a statutory maximum sentence of 10 years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for aggravated identity theft. He also faces financial penalties, including fines and restitution. Senior U.S. District Judge James C. Fox scheduled sentencing for the Aug. 5th term in Wilmington, North Carolina.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Walker commended the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Susan Menzer of the Eastern District of North Carolina, and Trial Attorneys Lauren Castaldi and Rebecca Perlmutter of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
North Carolina Man Pleads Guilty to Filing False Claims for Tax Refunds and Identity TheftRead the Press Release
WASHINGTON – A Raleigh, North Carolina, man pleaded guilty today to conspiracy to file false claims and identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.
According to court documents and court statements, Christian Rhodes and other co-conspirators recruited individuals to provide their personal information, which Rhodes and his co-conspirators used to prepare false federal individual income tax returns. The tax returns that Rhodes prepared and filed contained false wages, income tax withholdings and deductions, resulting in the false claims for tax refunds. Rhodes also used stolen identities to file false claims for tax refunds, and directed the Internal Revenue Service (IRS) to deposit these refunds electronically into bank accounts that he controlled, as well as accounts in the names of and controlled by third-party taxpayers. The tax loss as a result of these false claims is more than $3 million.
Rhodes faces a statutory maximum sentence of 10 years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for aggravated identity theft. He also faces financial penalties, including fines and restitution. Senior U.S. District Judge James C. Fox scheduled sentencing for the Aug. 5th term in Wilmington, North Carolina.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Walker commended the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Susan Menzer of the Eastern District of North Carolina, and Trial Attorneys Lauren Castaldi and Rebecca Perlmutter of the Tax Division, who are prosecuting the case.
Non-Indian Man from Isleta Pueblo Sentenced to Prison for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE—Gabriel Chavez, 32, a non-Indian residing in Isleta Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 30 months in prison followed by ten years of supervised release. Chavez was also ordered to pay $1,050.00 in restitution. Chavez will be required to register as a sex offender after completing his prison sentence.
Chavez was arrested on July 29, 2014, on a five-count indictment alleging that he sexually abused two Indian children between Aug. 2012 and July 2013, in Isleta Pueblo in Bernalillo County, N.M. Counts 1 through 3 charged Chavez with abusive sexual contact involving a child victim between the age of 12 and 16 years. Counts 4 and 5 charged Chavez with abusive sexual contact involving a second child victim under the age of 12 years.
On Jan. 28, 2015, Chavez entered a guilty plea to Count 1 of the indictment charging him with abusive sexual contact involving a child victim between the age of 12 and 16 years. Chavez admitted engaging in sexual contact with the child victim which included touching the victim’s genitals and other parts of her body.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Isleta Pueblo Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
New York Man Sentenced to 105 Months for Cocaine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE—Malik S. Williams, 32, of Bronx, N.Y., was sentenced this morning in federal court in Albuquerque, N.M., to 105 months in federal prison followed by five years of supervised release for his cocaine trafficking conviction.
Williams was arrested on Sept. 19, 2014, at the Amtrak train station in Albuquerque after DEA agents learned that Williams had concealed bundles containing more than three kilograms of cocaine in his luggage. Williams was subsequently indicted on Oct. 7, 2014, and charged with possession of cocaine with intent to distribute.
Williams entered a guilty plea to the indictment on Nov. 19, 2014, and admitted possessing and transporting three bundles of cocaine that were concealed inside the bottom liner of his suitcase.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office, which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Presiliano Torrez prosecuted the case.
Media Advisory: “From Selma to Cedar Rapids”Read the Press Release
Cedar Rapids, Iowa – The United States Attorney’s Office for the Northern District of Iowa joins community leaders in a special day of celebrating 2015 Law Day. The theme, “From Selma to Cedar Rapids” will highlight civil rights workers’ fight for civil rights, including the Selma marches for the right to vote. The connection between historical events and current day issues will be examined in a series of three presentations at the Veterans Memorial Building.
Area high school students have been invited and will actively participate in program activities designed to empower them to take an active role in their community. The general public is invited.
Follow this first of a kind event at #CRLawDay2015 and #FromSelma2CR.
Event Details
When: Wednesday, May 13, 2015.
Where: Event begins at the steps of the U.S. Courthouse, 111 7th St SE, Cedar Rapids, Iowa, followed by a symbolic march along the river to the Veterans Memorial Building where the program will continue.
Time: 9:00 am. – 2:00 p.m.
law_day_flyer.pdf
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Manhattan U.S. Attorney Announces Ruling in Government’s Favor in Stock-Loan Tax Trial Against Lehman Brothers HoldingsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has prevailed in a tax trial against LEHMAN BROTHERS HOLDINGS INC. (“LEHMAN”) resolving LEHMAN’s claim to approximately $67 million in foreign tax credits (“FTCs”) stemming from its cross-border stock lending. The decision, issued on May 8, 2015, by U.S. District Judge Richard M. Berman – following an October 7, 2014, bench trial – agreed with the Government that all of LEHMAN’s claimed FTCs should be disallowed. Together with, and upon application of, a previous settlement agreement between LEHMAN and the Government, LEHMAN’s claims of nearly half a billion dollars of FTCs are to be disallowed as a result of the Court’s decision.
Manhattan U.S. Attorney Preet Bharara said: “The Court’s decision rightly rejected an audacious tax-avoidance scheme that would have cost taxpayers hundreds of millions of dollars in lost revenue had it been allowed to go forward. Lehman moved millions of shares of stock around in an attempt to create tax credits available only under its questionable – and, as the Court found, erroneous – reading of a tax treaty, which it then tried to use to avoid paying taxes on its unrelated income.”
According to the evidence presented at trial:
In the transaction at issue, LEHMAN’s U.S. broker-dealer, Lehman Brothers Inc. (“LBI”), borrowed millions of shares of U.K. stock over their dividend record dates from U.S.-based lenders, and immediately lent them to its U.K. broker-dealer, Lehman Brothers International (Europe) plc (“LBIE”). LBIE, in turn, further lent the stock to a U.K. or European entity, or held the stock and used it for various purposes. Shortly after the dividend record date passed, the stock loans were unwound. Once the dividend was paid (to either LBIE or any entity to which it lent the stock), the recipient was contractually required to make a so-called “substitute payment” to the entity from which it borrowed the stock, in the amount of the dividend payment received. Thus, the ultimate holder would make a substitute payment to LBIE, LBIE would then make a substitute payment to LBI, and LBI would make a substitute payment back to the original lender. LBI, the U.S. taxpayer at issue, was accordingly just a pass-through entity between the ultimate stock lender and the ultimate stock borrower. LBI generally held the stock only for very short periods while shuttling it back and forth, and whenever it received a substitute dividend from LBIE, it paid out an equal substitute dividend to the original lender.
LEHMAN claimed that it was entitled to hundreds of millions of dollars’ worth of FTCs as a result of these transactions under its reading of a provision of the then-prevailing U.S.-U.K. tax treaty. Lehman then purported to use the majority of the FTCs it claimed to offset taxes it owed on hundreds of millions of dollars of its unrelated income.
According to the treaty, U.S. recipients of U.K. dividends were potentially entitled to a U.S. FTC in connection with those dividends, but the “aggregate of the amount or value of the dividend and the amount of the tax credit . . . shall be treated as a dividend for United States tax credit purposes.” The Government argued to the Court that the applicable U.S. tax credit rules prescribed certain conditions for when a taxpayer qualified for FTCs, among them that no credit would be given to a dividend recipient who acts as a middleman: in this case, someone who “is under an obligation . . . to make related payments with respect to positions in substantially similar or related property.” Thus, the Government argued, LEHMAN did not qualify for the tax credit because LBI’s obligation to pay out a substitute dividend was clearly “related” to its receipt of the substitute dividend from LBIE.
At the trial, the Court heard testimony from three former officials of the U.S. Department of Treasury who negotiated tax treaties, two who testified on behalf of LEHMAN, and one who testified on behalf of the Government. In the decision announced on Friday, the Court rejected LEHMAN’s argument that the Court should ignore or read out of existence the treaty language requiring that the sum of the dividend and the U.K. tax credit “shall be treated as a dividend” for U.S. tax credit purposes. It characterized LEHMAN’s arguments as impermissibly “cherry-picking” the treaty provisions that favor it – such as the one that potentially allowed it to claim FTCs – while rejecting the “shall be treated” provision that dooms LEHMAN’s claim.
Though the case tried before the Court concerned only approximately $67 million of the FTCs that LEHMAN claimed in connection with the stock-lending transactions it entered into in 1999 and 2000, the parties had previously agreed, pursuant to a March 14, 2014, settlement, that the Court’s trial ruling would be applied to LEHMAN’s claims for approximately $165 million of FTCs arising from the same types of transactions in 2001, 2002, 2003, and 2004, and also that LEHMAN would concede approximately $259 million of (additional) FTCs for the entire period. Accordingly, as a result of the trial and the settlement agreement, LEHMAN will lose all of the approximately $489 million in FTCs that it claimed in connection with the stock-lending transactions at issue.
Mr. Bharara thanked the Internal Revenue Service Office of Associate Chief Counsel (International) and its staff attorneys for their work on the case.
The case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant United States Attorney Jean-David Barnea is in charge of the case.
Man Pleads Guilty to Charges in Two Separate CasesRead the Press Release
St. Croix, USVI – Jahseen Simmonds, 23, pleaded guilty today in District Court on St. Croix to criminal charges filed in two separate cases, United States Attorney Ronald W. Sharpe announced.
In the first case, Simmonds pleaded guilty to two counts of possession of prison contraband. As part of his plea, Simmonds admitted that on August 30, 2013, Virgin Islands Bureau of Corrections (BOC) officers seized two shanks or homemade knives from inside his cell at the Golden Grove Adult Correctional Facility (Golden Grove) on St. Croix. Court records also show that on April 7, 2014, federal law enforcement officers found and seized a shank from under a mattress in Simmonds cell at Golden Grove.
In the second case, Simmonds pleaded guilty to one count of possession of a firearm while under indictment. As part of his plea, Simmonds admitted that on January 2, 2015, while under indictment, Virgin Islands Police Department (VIPD) officers searched and seized from his waist area a loaded .40 caliber semiautomatic handgun in the Ruby Rouss Housing Complex.
Simmonds is facing a maximum sentence of five years in prison and a $250,000 fine for the possession of prison contraband counts, as well as for the possession of a firearm while under indictment count. Sentencing is scheduled for September 9, 2015.
This case was investigated by BOC, VIPD, the United States Drug Enforcement Administration, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Man Extradited to Scotland to Face Attempted Murder ChargeRead the Press Release
BOSTON – A Princeton, Mass. man was extradited to Scotland on Friday, May 8, to face trial on attempted murder charges. The surrender comes after extended litigation regarding the request by the United Kingdom (UK) for the extradition of Alexander Hilton in relation to allegations that he poisoned Robert Forbes on March 5, 2011. Hilton had returned to the United States shortly after the attempt and after being questioned by investigators in Scotland about the incident.
On Feb. 13, 2013, Hilton, 24, was arrested for purposes of extradition in response to the UK request. On March 5, 2013, U.S. Magistrate Judge Jennifer Boal released Hilton on conditions, including cash bond and home detention. During extradition proceedings, Judge Boal found that Hilton was subject to extradition to the UK, after reviewing the UK request and hearing additional evidence from Hilton regarding his mental health. Thereafter, Hilton challenged the extradition certification decision but his petition for a writ of habeas corpus was denied. The U.S. Court of Appeals for the First Circuit affirmed the decision. Hilton’s core argument was that his extradition to Scotland would result in his suffering from an increased risk of suicide due to his mental health condition, and for that reason, U.S. officials would infringe upon his due process rights by authorizing the extradition. The Court held that the decision whether to extradite him as a consequence of these concerns was properly entrusted by law to the U.S. Secretary of State, not the courts, as part of the Secretary’s final determination of whether to grant international requests for extradition. Thereafter, the Secretary of State considered Hilton’s case and granted the UK’s request to extradite Hilton to face trial for attempted murder in a Scottish court.
U.S. Attorney Carmen M. Ortiz and U.S. Marshal John Gibbons of the U.S. Marshals Service, District of Massachusetts, made the announcement today. The case was handled by Assistant U.S. Attorney Theodore Heinrich of Ortiz’s Drug Task Force Unit, with assistance from the Justice Department’s Office of International Affairs, Criminal Division. The transfer was coordinated and carried out by the U.S. Marshals Service.
Madison Elementary School ANCHOR Program honored with community outreach awardRead the Press Release
WHEELING, WEST VIRGINIA – Educators Michael J. Kelly and Richard L. Morgan were honored today with the 2015 Community Outreach Award from United States Attorney William J. Ihlenfeld, II, in recognition of their dedication to the education and enrichment of local students through the ANCHOR Program at Madison Elementary School.
Madison Elementary School on Wheeling Island serves communities that have been particularly impacted by poverty, drugs, and violence. Often, the children growing up in these neighborhoods are not afforded the resources and opportunities to flourish academically, socially, and emotionally. The ANCHOR Program is an after-school resource designed to provide education and social enrichment. The program plays an integral role in providing academic support and other activities, each and every day, for at-risk students. The goal is simple: to enhance academic achievement, community engagement, and social and emotional awareness. The ANCHOR Program provides educational support, physical activity, as well as exposure to the arts and other community resources.
Michael Kelly is the longest serving member of the ANCHOR Program staff. He has dedicated himself to the students of Madison Elementary School for the past 12 years. Beginning in 1978, he gained invaluable insight as a classroom teacher. He retired in June 2014 and devotes even more of his time to the ANCHOR Program.
For the past two years, Richard Morgan has served as the Director of the ANCHOR Program. He is also the director of the Stifel Fine Arts Center, which allows Rick to bring art and creative outlets into the organized activities of the ANCHOR Program. The program has greatly benefited from his dynamic personality and knowledge of community efforts and partnerships.
Today’s awards ceremony took place at the United States Post Office and Federal Courthouse in Wheeling and included remarks from U.S. District Judge John Preston Bailey and U.S. Attorney Ihlenfeld. A variety of local, state, and federal law enforcement agencies were represented along with community leaders, volunteers, and advocates.
Lrgp Gang Member Sentenced on Crack Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Dijaon Bland, 25, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute crack cocaine, was sentenced to 70 months in prison by U.S. District Judge Richard J. Arcara.According to Assistant U.S. Attorney Thomas S. Duszkiewicz, Bland was a member of L.R.G.P., a violent street gang named after the East Side streets of Lombard, Rother, Gibson and Playter. The defendant sold crack cocaine from a “trap house” on Memorial Drive in Buffalo utilized by gang members. The house was run by Bland’s cousin and L.R.G.P. leader Dewayne Gray.
Bland is one of 19 L.R.G.P. members and associates indicted in this case. The defendant is the fifth to be convicted. On May 8, 2015, another 11 L.R.G.P. members and associates were also indicted on crack cocaine charges. The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
The indictment is the culmination of an investigation by Federal Bureau of Investigation’s Safe Streets Task Force which included the Amherst Police Department; Buffalo Police Department; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Cheektowaga Police Department; Erie County Sheriff’s Office; Hamburg Police Department; Lancaster Police Department; Niagara Frontier Transportation Authority; New York State Department of Correctional Services; New York State Police; U.S. Border Patrol; and U.S. Immigration and Customs Enforcement–Homeland Security Investigations.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.Logan County Sex Offender to Serve 25 Years in Federal PrisonRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough today sentenced Ronald L. Collins, 56, a sex offender, to a term of 300 months (25 years) in federal prison for receiving images of child pornography. Judge Myerscough further ordered that Collins, of Lincoln, Ill., pay a fine of $5,000., and upon completion of his 25-year sentence, to remain on supervised release for life.
Collins pled guilty in January to receiving images of child pornography on his cell phone from June 2013 to May 2014. At the time Collins committed the offense, he had a prior felony conviction for aggravated criminal sexual abuse in Montgomery County, Ill.
The charge was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Lincoln Police Department. The case was prosecuted by Assistant U.S. Attorney John E. Childress.
Collins has remained in the custody of the U.S. Marshals Service since he was charged by federal indictment in September 2014. He was previously in the custody of the Logan County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Lesage man sentenced to federal prison for distributing oxycodoneRead the Press Release
HUNTINGTON, W.Va. – A Lesage man who helped distribute oxycodone pills from his trucking business to an undercover federal agent in 2013 was sentenced today to 58 months in federal prison, announced United States Attorney Booth Goodwin. Kenneth Ray Cisco, 50, previously pleaded guilty in February of 2015 to aiding and abetting the distribution of oxycodone.
Cisco, owner of now defunct Cisco Trucking, admitted that he exchanged oxycodone pills for tractor-trailer tires. On March 14, 2013, an undercover federal agent traveled to Cisco Trucking in Huntington, West Virginia, to meet with Cisco for the purposes of conducting a pre-arranged oxycodone sale. Cisco directed another individual to distribute 33 oxycodone pills to the undercover agent in exchange for six tires. Cisco also admitted that he made additional oxycodone sales with the undercover agent and others in exchange for tires, motor oil, and cash.
The United States Drug Enforcement Administration conducted the investigation with assistance from the Huntington Police Department. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was 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 trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Leader and Top Enforcer of “Cash Money Brothers” Criminal Gang Sentenced to Six Terms of Life ImprisonmentRead the Press Release
Earlier today, Damion Hardy, also known as “World,” and Aaron Granton, also known as “E-Bay,” were each sentenced to six terms of life imprisonment following their April 29, 2015 conviction after trial on charges of murder in-aid-of racketeering and related offenses. The sentence was imposed by United States District Judge Frederic Block.
The sentences were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Raymond R. Parmer Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; and William J. Bratton, Commissioner, New York City Police Department.
“Gang members and would-be gang members are on notice that we will never cease in our efforts to bring murderous criminals to justice and to make communities like Lafayette Gardens safe for its law abiding residents,” stated Acting United States Attorney Currie. “I thank the FBI, HSI, and the New York City Police Department for their extraordinarily hard work and total dedication to bringing these most violent gang members to justice.”
From 1991 until August 2004, Hardy was the leader of a criminal enterprise known as the “Cash Money Brothers” (CMB) based in the Lafayette Gardens houses in Brooklyn, New York. Granton was a member of CMB and one of its top enforcers. From the time the crack-cocaine epidemic began in the late 1980s, Lafayette Gardens was a central and lucrative hub for the distribution of cocaine base. At that time, the young men who would later form CMB acted as street dealers under the direction of the senior drug dealers who controlled Lafayette Gardens. In approximately 1991, after CMB was formed under the leadership of the defendant Hardy and his brother, Myron Hardy, also known as “Wise,” the CMB ousted the senior dealers and seized control of the Lafayette Gardens crack trade for themselves.
CMB maintained control of Lafayette Gardens through acts of violence that included near-daily gun battles with rival organizations and numerous murders. For example, in 1998, Hardy ordered a junior gang member to shoot and kill Michael Colon because Hardy believed Colon disrespected and humiliated him at a roller skating rink. In 1999, while Hardy was incarcerated, his brother Myron was shot and killed in Lafayette Gardens. Hardy and other CMB members believed that a rival drug dealer named Ivery “Peanut” Davis and other members of Davis’s drug organization were responsible for the murder. While Hardy lay wounded in the hospital, Damion Hardy, from his prison cell, directed his gang members to exact revenge and ordered CMB members to murder Darryl Baum, James Hamilton, Tyrone Baum, and Ivery Davis – each was murdered by Granton. Davis’s killing also resulted in the death of an innocent bystander, Johan Camitz.
Through his murderous work with CMB, Granton earned a reputation as an effective and ruthless killer. As a result, he was recruited in 2001 by a separate gang, the “Supreme Team,” to kill Troy Singleton – who was then shot multiple times in the back and head as he left a nightclub in Queens, New York.
The government’s case is being prosecuted jointly by the Office’s International Narcotics & Money Laundering Section and Organized Crime & Gangs Section. Assistant United States Attorneys Matthew Amatruda, Soumya Dayananda, and Rena T. Paul are handling the prosecution.
The Defendants:
DAMION HARDY
Age: 40
Brooklyn, NY
AARON GRANTON
Age: 40
Brooklyn, NY
E.D.N.Y. Docket No. 04-CR-0706
Kelvin Broadwater of Wilmington Sentenced for Heroin Distribution and Firearms ViolationRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced, KELVIN BROADWATER, 44, of Wilmington, to 180 months of imprisonment followed by 3 years of supervised release.
BROADWATERwas named in an Indictment filed on August 27, 2014. On February 12, 2015, the Defendant pled guilty to Distribution of a Quantity of Heroin and Felon in Possession of a Firearm and Ammunition. According to the investigation and information presented in open court during the arraignment and sentencing, on March 21, 2014, officers with the Wilmington Police Department executed a search warrant at BROADWATER’S residence. When BROADWATER and a female pulled up to the apartment, vice detectives approached him and asked him to get out of his car. Rather than complying, BROADWATER locked himself in his car and attempted to ingest heroin. Detectives broke out the rear window and gained entry into the car. BROADWATER was taken into custody and 3 bindles of heroin fell off his person. Also during the execution of the search warrant, officers found a .32 caliber revolver in a dresser of BROADWATER’s bedroom. In a separate dresser drawer officers found a box of .32 caliber ammunition. The execution of the search warrant came after the Wilmington Police Department conducted two controlled purchases of heroin from BROADWATER.
BROADWATER admitted that he had been selling drugs and admitted buying the gun for $100.00 from a neighbor. Due to BROADWATERS’S extensive criminal history, he was designated as an Armed Career Criminal.
Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Charity Wilson prosecuted the case. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute violent crime, firearm related cases, and narcotic crimes.