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11 May 2015
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/
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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.
Kanawha County woman gets probation and home confinement for possessing opiates for distributionRead the Press Release
CHARLESTON, W.Va. – A London, West Virginia woman who received a package of oxycodone from New York through the U.S. mail, was sentenced today to five years of probation, with the first six months to be served in home confinement, announced U.S. Attorney Booth Goodwin. Whitney Reanne Kent, 26, previously pleaded guilty in February of 2015, to possession with intent to distribute oxycodone.
On December 5, 2012, the United States Postal Inspection Service and a member of the Metro Drug Enforcement Network Taskforce (MDENT) were conducting interdiction efforts at the Charleston Post Office to curb drug trafficking through the U.S. Mail. They intercepted a package addressed to Kent. Upon executing a federal search warrant on the package, investigators seized approximately 89 30mg oxycodone pills. On December 7, 2012, when Kent arrived at the Post Office to retrieve the package, investigators confronted her about the pills. She admitted she knew the pills were in the package and that she was there to pick them up for someone else. United States District Judge Thomas E. Johnston handed down the sentence.
The Metro Drug Enforcement Network Team and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Joshua C. Hanks 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.
Justice Department Announces Missoula Police Department Has Fully Implemented Agreement to Improve Response to Reports of Sexual AssaultRead the Press Release
The Department of Justice announced today that the Missoula, Montana, Police Department (MPD) has fully implemented the requirements of its agreement with the department to improve the MPD’s response to reports of sexual assault. The agreement, which was entered into in May 2013, resolved part of the department’s comprehensive investigation of the response by the Missoula criminal justice system and the University of Montana to sexual assault. Thomas R. Tremblay, the independent reviewer who determines whether the terms of the agreement have been met, has determined, and the department has agreed, that the MPD has met all of its obligations under the agreement and achieved the overall purpose of the agreement.
The purpose of the agreement between the department and the MPD was to better protect and vindicate the rights of sexual assault victims by transforming the MPD’s response to allegations of sexual assault. To do this, the agreement required significant changes to the police department’s policies, practices and supervision. These changes promote more reliable sexual assault investigations, and effective, nondiscriminatory law enforcement and community support for victims, the police department and its officers. The MPD’s implementation of the agreement has resulted in a host of historic advances in the Missoula response to sexual assault, including the following:
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creation of a new Special Victims’ Unit in the MPD focusing on sex crimes cases, and an interview room specifically designed for interviews with victims of sexual assault;
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extensive specialized training for first responders and detectives in the response to sexual assault;
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development and institution of an external review panel – one of the first of its kind – to review closed sexual assault cases for investigative comprehensiveness and indications of gender bias;
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completion of an audit of the community-wide response to sexual assault – one of the first community audits to focus exclusively on sexual assault – including all of the key law enforcement agencies, advocacy organizations and medical service providers serving victims of sexual assault in Missoula County;
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community advocates reporting better communication and coordination with local law enforcement than ever before; and
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victim surveys indicating significant satisfaction with police officers’ and detectives’ treatment of victims reporting sexual assault to law enforcement.
“Our agreement with the Missoula Police Department following our investigation into the handling of sexual assault complaints made by women in Missoula has been a catalyst for powerful changes in both the law enforcement and the community’s coordinated response to sexual assault,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We are grateful for the efforts of MPD and the entire Missoula community because, as a result of these reforms, the women of Missoula are safer, more trusting of the criminal justice system, and subject to more fair and respectful treatment by local law enforcement. Missoula’s police department had the courage and leadership to acknowledge that it had a problem and to address it, and as a result, is poised to become a model for communities struggling with these issues around the country.”
“We commend the Missoula Police Department and the city of Missoula for the leadership and commitment that they have demonstrated to transform the way in which their city police department responds to reports of sexual assault,” said U.S. Attorney Michael Cotter of the District of Montana. “We also recognize and appreciate the hard work that the detectives and officers of the Missoula Police Department have put into carrying out these reforms. In so doing, they have carried out the highest ideals of public service, making the safety and civil rights of their community a top priority, and their efforts should be an inspiration to us all.”
The full implementation of the department’s agreement with the MPD marks the first completion of the series of agreements stemming from the department’s multi-pronged investigation, launched in May 2012, regarding the handling of sexual assault complaints made by women in Missoula. The investigation, conducted under the Violent Crime and Law Enforcement act of 1994, the Safe Streets Act, Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, evaluated the response to sexual assault at the University of Montana at Missoula, the University of Montana Police Department (UMPD), the MPD, and the Missoula County Attorney’s Office. The department entered into agreements with the university, the UMPD and the MPD in May 2013, to resolve findings related to those parties and address deficiencies in their response to sexual assaults. The department, together with the Montana Attorney General’s Office, entered into agreements regarding the Missoula County Attorney’s Office the following year, in June 2014. The implementation of those agreements has already improved these parties’ response to sexual assaults.
These agreements, as well as a description of the department’s work regarding sexual assault in Missoula, are available at: http://www.justice.gov/crt/about/spl/. The independent reviewer’s final compliance report, describing in detail his determination that the MPD has successfully implemented the department’s agreement, is forthcoming, and will be available on the department’s website upon its release.
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Jacksonville Man Sentenced to More Than 4 Years in Federal Prison for Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Arnold Bernard Conrad, Jr. (52, Jacksonville) to four years and four months in federal prison for possessing child pornography. The Court also ordered him to serve a five-year term of supervision following his release, register as sex offender, forfeit his computer media, and pay $9,000 in restitution to three victims. Conrad pleaded guilty on November 12, 2014.
According to court documents, a detective with the Jacksonville Sheriff’s Office began an undercover investigation to identify individuals that were trading images and videos depicting child pornography over the Internet. The detective determined that a particular computer in Jacksonville was hosting and trading images of child pornography using a peer-to-peer file sharing program. The subscriber information for the computer was traced back to Conrad’s Jacksonville residence, where a search warrant was subsequently executed, and his computer media was seized. During an interview with agents, Conrad admitted to having used two different programs to download child pornography from the Internet, saving it to external hard drives, and that he had been doing so for almost two years. A forensic analysis of Conrad’s computer media revealed that it contained 504 images and 145 videos depicting child pornography, including at least one video depicting a nude toddler being sexually assaulted.
“Working with strong law enforcement partners, like the Jacksonville Sheriff’s Office, allows our HSI special agents to remove criminals like this from our communities,” said Susan L. McCormick, special agent in charge of HSI Tampa.
This case was investigated by the Jacksonville Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Glen Allen Woman Sentenced to 4 ½ Years in Prison for Making False Statements in an International Terrorism InvestigationRead the Press Release
RICHMOND, Va. – Heather Elizabeth Coffman, 29, of Glen Allen, Virginia, was sentenced today to 54 months in prison, followed by three years of supervised release for a charge related to her attempted support of the international terrorist group ISIS.
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 the case) 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.
John P. Carlin, Assistant Attorney General for National Security; Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney, Jr.
This case was investigated by FBI’s Richmond Field Office and the Richmond Joint Terrorism Task Force (JTTF). The JTTF is a collection of state, federal and local law enforcement agencies, dedicated to the mission of proactively keeping communities safe by thwarting national security and terrorism issues before they become a reality. 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, United States Secret Service, Bureau of Alcohol Tobacco and Firearms and Explosives, Department of State Diplomatic Security Service, Transportation Security Administration and Defense Criminal Investigative Service.
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 are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-016.
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Ghana Native Pleads Guilty to Obtaining U.S. Citizenship by FraudRead the Press Release
KANSAS CITY, KAN. – A native of Ghana who obtained naturalized U.S. citizenship in 2004 has pleaded guilty to obtaining citizenship by fraud and faces possible deportation, U.S. Attorney Barry Grissom said Monday.
Ernest Opoku Acheampong, 44, Shawnee, Kan., entered a guilty plea Monday before U.S. District Judge Julie A. Robinson and is scheduled to be sentenced July 29. Because he pleaded guilty to making a false statement on his application for U.S. citizenship and ultimately became a naturalized U.S. citizen, federal law requires that his citizenship be revoked, Grissom said.
“Not only will his certificate of naturalization be cancelled, he will be placed in removal proceedings,” Grissom said. “And, he faces possible incarceration in the criminal case. People who make false statements in their attempt to become naturalized U.S. citizens undermine the process and dishonor those seeking citizenship honestly.”
During court proceedings Monday, Acheampong admitted that he first entered the United States in 1994, claiming to be a “Michael Smith” from Libya. He was denied entry, but requested asylum and sought to remain in the U.S. His claims of fear of persecution were found to be unfounded and he was ordered deported, but Acheampong never surrendered himself for deportation.
In 1996, Acheampong was able to obtain a valid entry visa under his true name and country of citizenship, Ghana, and ultimately applied for naturalized U.S. citizenship in 2004, but failed to disclose his previous entry into the United States and the prior order of deportation on his naturalization application. He was granted naturalized U.S. citizenship in September 2004, Grissom said.
However, in August 2014, when Acheampong applied for a Kansas driver’s license, officials of the Kansas Department of Revenue determined through facial recognition software employed whenever people apply for state ID cards or driver’s licenses that the defendant had previously obtained a Kansas driver’s license under the name “Michael Smith.”
Their agents then notified the Department of Homeland Security’s Citizenship and Immigration Services (CIS) and Homeland Security Investigations (HSI), who completed the investigation and documented what Acheampong had done. Acheampong was indicted in the case in October.
Grissom praised the agencies for their work on their case and Assistant U.S. Attorney Brent Anderson for his prosecution.
Ft. Walton Man Charged with Producing Child PornographyRead the Press Release
PENSACOLA, FLORIDA – A federal grand jury returned an indictment charging Samuel J. Johnson, 42, of Ft. Walton Beach, Florida, with production, receipt, and possession of child pornography, and transfer of obscene matter to a minor. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, between April 2013 and April 2015, Johnson knowingly used a minor to engage in sexually explicit conduct for the purpose of producing visual depictions, and that he committed this offense while he was required to register as a sex offender. The indictment also alleges that Johnson received images and videos containing child pornography, that he possessed material containing images and videos of child pornography involving a minor under age 12, and that he transferred obscene matter to an individual less than age 16.
Johnson 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, 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 Jeffrey Tharp.
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]Fort Lauderdale Man Sentenced for Telemarketing FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Lev Derbaremdiker, 29, of Fort Lauderdale, FL, was sentenced in the United States District Court in East St. Louis, Illinois on one count of conspiracy to commit mail and wire fraud in connection with telemarketing. Derbaremdiker was sentenced to a year and a day in prison, to be followed by two years of supervised release. Derbaremdiker was also ordered to pay a $100 special assessment.
The investigation determined that Derbaremdiker was a closer at C&G Marketing Associates, LLC, also known as Premier Timeshare Solutions (PTS). Working out of office buildings in Florida, PTS, targeted owners of timeshares throughout the United States and Canada. In various court filings related to the PTS scam, the government has alleged that the overall scam bilked consumers of $14.5 million from over 7,000 people throughout the United States and Canada.
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Assistant United States Attorney’s Scott Verseman and Michael Hallock.
Former employee at Parma Public Housing Agency charged with stealing $232,000Read the Press Release
A former employee at Parma Public Housing Agency was charged with stealing more than $232,000 from the agency, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Amy Belz, 34, of Brunswick, Ohio, was charged with one count of theft of government funds via criminal information.
“This defendant is accused of stealing hundreds of thousands of dollars that was meant to be used to help people obtain housing,” Dettelbach said. “Public employees who steal from taxpayers will be held accountable for their actions.”
The information charges that between 2008 and 2014, while Belz was program manager of the Parma Public Housing Agency, she stole $232,407.48 by writing 138 checks to herself, money which was provided to Parma from the U.S. Department of Housing and Urban Development.
In order to conceal her theft of funds from Parma Public Housing Agency and HUD, Belz made the checks out to herself, but typed vendor names on the carbon copies in the Parma Public Housing Agency check registers. Belz then created false invoices from these legitimate Parma Public Housing Agency vendors, attached them to the false carbon copies, and placed them in the Parma Public Housing Agency files to make it appear that the vendor was paid for work, knowing that such was never actually ordered or completed, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Adam Hollingsworth after an investigation by the U.S. Department of Housing and Urban Development Office of the Inspector General and the Parma Police Department.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former TSA Security Officer Pleads Guilty to Faking Cancer to Receive Paid Government LeaveRead the Press Release
ATLANTA – Marc Bess, a former transportation security officer with the Transportation Security Administration, has pleaded guilty to theft of government funds after he faked an abdominal cancer diagnosis and forged doctor’s notes in order to receive donated leave hours from his TSA coworkers.
“Bess deceived his coworkers, who donated their own paid vacation time out of concern for their colleague, so he could take time off from work at the public’s expense,” said Acting U.S. Attorney John Horn. “He made the mistake of faking a doctor’s note from a physician who had died months earlier. His repeated lies over five years betrayed not only his coworkers but also the passengers he was charged with protecting.”
“Mr. Bess' thoughtless actions to defraud his fellow employees was indeed despicable; he betrayed the general trust of many compassionate TSA employees, who were willing to donate their hard-earned leave in support of a fellow employee,” said James E. Ward, Special Agent in Charge, DHS - Office of Inspector General. “We are pleased with Mr. Bess’ guilty plea, and the acknowledgment that he will be held responsible for his treachery.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: The TSA offers a Voluntary Leave Transfer Program to its employees, which permits them to donate paid leave hours to other employees in cases of emergency. In order to be eligible to receive donated leave hours through this program, employees must submit a written application describing the nature and severity of their medical emergency with supporting documentation from the treating physician.
Bess was a TSA employee at Hartsfield-Jackson Atlanta International Airport. Between September 2009 and January 2014, Bess submitted three written applications to the TSA falsely claiming that he was receiving treatment for lymphoma cancer in the abdominal area. In support of these applications, Bess forged the signature of a physician in letters he drafted that described phony radiation therapy and surgical treatments for the fake cancer diagnosis. Based on these false applications, Bess became eligible to receive donated leave hours from coworkers. In reality, Bess has never been diagnosed with or treated for cancer.
Bess also submitted periodic forged physician’s notes to the TSA from 2009 through December 2014 describing fake cancer treatments in support of his requests for additional paid leave hours. Two of the forged letters that were purportedly written by the physician were dated several months after the physician died in July 2014.
In total, Bess received approximately 2240 hours of paid leave hours donated by other federal employees over a five-year span based on his false claim of cancer. Based on these donated hours, the TSA paid Bess approximately $60,000 in salary and benefits while he took time off from work. Bess resigned from the TSA in January 2015 after his fraud was exposed.
Bess, 42, of Atlanta, Georgia, pleaded guilty before U.S. District Court Judge Mark H. Cohen. Sentencing for Bess is scheduled for July 24, 2015, at 10:00 a.m.
This case is being investigated by the Department of Homeland Security, Office of the Inspector General.
Assistant United States Attorney Nathan P. Kitchens is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former President Sentenced for Embezzling from Union LocalRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former president of the union representing Jackson County Department of Corrections employees was sentenced in federal court today for a wire fraud scheme in which he embezzled more than $138,000 from the union local.
Jesse E. Morgan, 39, of Kansas City, Mo., was sentenced by U.S. Chief District Judge Greg Kays to 21 months in federal prison without parole. The court also ordered Morgan to pay $138,011 in restitution to the union.
Morgan, who pleaded guilty to wire fraud on Oct. 7, 2014, was president of the American Federation of State, County and Municipal Employees (AFSCME) Local 1707 from 2008 through Oct. 20, 2012.
Morgan admitted that he engaged in a wire fraud scheme during most of his tenure as president, from November 2008 through Oct. 22, 2012, to steal from AFSCME Local 1707. Morgan issued checks from Local 1707 to third parties for his benefit or to himself; made electronic transfers from Local 1707 bank accounts to pay personal expenses; made unauthorized ATM withdrawals from Local 1707 bank accounts; and made unauthorized counter withdrawals from Local 1707 checking and savings accounts.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Department of Labor – Office of Labor-Management Standards.
Former Omaha Man Convicted of Tax FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Adam Mwanza, age 43, of Miami, Florida, was convicted Wednesday, May 6, 2015, after a jury found him guilty of 13 counts of tax fraud for his involvement in assisting in the preparation of false tax returns. The Honorable Joseph F. Bataillon presided over the trial that was held last week in United States District Court. Sentencing has been set for August 7, 2015. Mr. Mwanza faces 3 years of imprisonment and a $250,000.00 fine on each count.
Mr. Mwanza was a tax preparer. In tax years 2007 and 2008 he was servicing a primarily immigrant client base. He would electronically file fraudulent returns falsely claiming rental deductions for what people were paying for their monthly rent expense and would fabricate Adjusted Gross Income amounts. The effect of the fraud was to inflate the amount of the refunds the taxpayer received.
The case was investigated by Internal Revenue Service Criminal Investigations.
Former Kittery Woman Pleads Guilty to Bankruptcy Fraud ChargesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Rana J. Clarizio, 46, of Oak Brook, Illinois, and formerly of Kittery, Maine, pleaded guilty today in U.S. District Court to bankruptcy fraud.
According to court records, on March 21, 2014 the defendant filed for bankruptcy in Maine. On April 4, 2014, she filed Schedules of Assets and Liabilities (“schedules”) and a Statement of Financial Affairs (“SOFA”) under the penalty of perjury in which she failed to disclose more than $70,000 worth of property of the bankruptcy estate. On May 2, 2014, she testified under oath at a meeting of her creditors that her schedules and SOFA were true and correct. In addition, in anticipation of the bankruptcy filing, she transferred and concealed over $125,000 worth of property of the estate that she failed to disclose in her April schedules and SOFA.
Clarizio faces up to five years in prison and a $250,000 fine on each charge. She will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Federal Bureau of Investigation.Former Concord Resident Charged with Religious Hate Crime and Arson ChargesRead the Press Release
OAKLAND – Hugo John Scherzberg made his initial appearance and was arraigned in federal court today on religious hate crime and arson charges relating to the March 20, 2010, fire at a church in Pittsburg, Calif., announced United States Attorney Melinda Haag and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge, Joseph M. Riehl.
Scherzberg, 48, formerly of Concord, Calif., was indicted by a federal grand jury on March 5, 2015, with burning the Church of the Living God (C.W.F.F.) building in Pittsburg because of its religious character, and with arson of a building used in activities affecting interstate commerce.
Scherzberg made his appearance before the Honorable Kandis A. Westmore, U.S. Magistrate Judge, and entered not guilty pleas to the charges. On the government’s motion, Judge Westmore ordered Scherzberg detained pending trial. His next appearance, a status hearing, is scheduled to occur on June 8, 2015, at 2:00 p.m., before the Honorable Haywood S. Gilliam, U.S. District Judge.
The maximum statutory penalties for damaging religious property by the use of fire, in violation of 18 U.S.C. §§ 247(a)(1) and (d)(3), is 20 years imprisonment and a fine of $250,000. The maximum statutory penalty for arson of a building used in interstate and foreign commerce, in violation of 18 U.S.C. § 844(i), is also 20 years imprisonment, with a mandatory minimum of 5 years, and a fine of $250,000. Restitution and an additional period of supervised release may also be ordered, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment contains only allegations and, as with all defendants, Scherzberg must be presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Andrew S. Huang is prosecuting the case with the assistance of Vanessa Vargas Quant. The Civil Rights Division, U.S. Department of Justice is also assisting in the prosecution. The prosecution is the result of an investigation by the ATF and the Contra Costa County Fire Investigation Unit, with assistance from the San Francisco Fire Department, San Francisco Police Department, and San Francisco District Attorney’s Office.
Former Champaign Business Owner to Serve 27 Months in Prison for Filing False Income Tax ReturnsRead the Press Release
Urbana, Ill. – A former Champaign, Ill. businessman, Michael Fogerson, has been sentenced to 27 months in prison for filing false income tax returns. On Friday, U.S. District Judge Harold A. Baker further ordered that Fogerson, 52, serve one year of supervised release following his release from prison. Fogerson was ordered to report on July 20, 2015, to the federal Bureau of Prisons to begin serving his sentence. Fogerson was also ordered to pay restitution in the total amount of $465,211 to the IRS, as well as a $200 special assessment.
On March 17, 2015, Fogerson, pleaded guilty to two counts of filing false income tax returns. According to court records, Fogerson was the owner, sole proprietor, and operator of The Smoke Shack in Champaign, Ill., and The Smoker’s Den in Decatur, Ill. During 2009, 2010, and 2011, The Smoke Shack sold tobacco-related products, as well as synthetic marijuana prior to its regulation by state and federal authorities. For tax years 2009 and 2010, Fogerson sold bulk quantities of synthetic marijuana to tobacco product stores similar to The Smoke Shack that operated outside of the Champaign and Decatur area. Fogerson admitted that he failed to report to the IRS the profits generated from these bulk sales.
The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges were investigated by the Internal Revenue Service Criminal Investigation Division.
Former CIA Officer Sentenced to 42 Months in Prison for Leaking Classified Information and Obstruction of JusticeRead the Press Release
Jeffrey A. Sterling, 47, of O’Fallon, Missouri, was sentenced today to 42 months in prison for disclosing national defense information and obstructing justice. Sterling disclosed classified information about a clandestine operational program concerning Iran’s nuclear weapons program to a New York Times reporter in 2003.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew McCabe of the FBI’s Washington, D.C. Field Office made the announcement.
“For his own vindictive purposes, Jeffrey Sterling carelessly disclosed extremely valuable, highly classified information that he had taken an oath to keep secret,” said U.S. Attorney Boente. “His attempt to leverage national security information for his own malicious reasons brought him to this sentence today. I would like to thank the trial team and our partners at the FBI’s Washington Field Office and the Central Intelligence Agency for their hard work and commitment to this case.”
“The sentence handed down by a federal judge is the culmination of a lengthy investigation, a protracted prosecution and a unanimous decision by a federal jury to convict Mr. Sterling for the unauthorized disclosure of national security information,” said Assistant Director in Charge McCabe. “The time and effort dedicated to this case by FBI special agents, intelligence analysts and prosecutors working on this matter exemplify the extent the FBI will undertake in pursuit of justice.”
Sterling was found guilty by a federal jury on Jan. 26, 2015. According to court records and evidence at trial, Sterling was employed by the CIA from May 1993 to January 2002. From November 1998 through May 2000, he was assigned to a classified clandestine operational program designed to undermine the Iranian nuclear weapons program. He was also the operations officer assigned to handle a human asset associated with that program, a person identified at trial as Merlin. Sterling was reassigned in May 2000, at which time he was no longer authorized to receive or possess classified documents concerning the program or the individual.
In connection with his employment, Sterling, who is a lawyer, signed various security, secrecy and non-disclosure agreements in which he agreed never to disclose classified information to unauthorized persons, acknowledged that classified information was the property of the CIA, and also acknowledged that the unauthorized disclosure of classified information could constitute a criminal offense. These agreements also set forth the proper procedures to follow if Sterling had concerns that the CIA had engaged in any “unlawful or improper” conduct that implicated classified information. These procedures permit such concerns to be addressed while still protecting the classified nature of the information. The media was not an authorized party to receive such classified information.
In August 2000, Sterling pursued administrative and civil actions against the CIA. Evidence at trial showed that Sterling, in retaliation for the CIA’s refusal to settle those actions on terms favorable to him, disclosed information concerning the classified operational program and the human asset to a New York Times reporter working on an unpublished article in early 2003 and a book the reporter published in January 2006. Sterling’s civil and administrative claims were ultimately dismissed by the court.
Evidence demonstrated that in February and March 2003, Sterling made various telephone calls to the reporter’s residence and e-mailed a newspaper article about the weapons capabilities of a certain country that was within Sterling’s previous clandestine operational assignment. While the possible newspaper article containing the classified information Sterling provided was ultimately not published in 2003, evidence showed that Sterling and the reporter remained in touch from December 2003 through November 2005 via telephone and e-mail. In January 2006, the reporter published a book that contained classified information about the program and the human asset.
Evidence at trial showed that Sterling was aware of a grand jury investigation into the matter by June 2006 when he was served a grand jury subpoena for documents relating to the reporter’s book. Nevertheless, between April and July 2006, Sterling deleted the e-mail containing the classified information he had sent from his account in an effort to obstruct the investigation.
This case was investigated by the FBI’s Washington Field Office, with assistance in the arrest from the FBI’s St. Louis Field Office. This case was prosecuted by Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Senior Litigation Counsel James L. Trump and Assistant U.S. Attorney Dennis Fitzpatrick of the Eastern District of Virginia.
Former CIA Officer Sentenced to 3 ½ Years in Prison for Leaking Classified Information and Obstruction of JusticeRead the Press Release
ALEXANDRIA, Va. – Jeffrey A. Sterling, 47, of O’Fallon, Missouri, was sentenced today to 42 months in prison for disclosing national defense information and obstructing justice. Sterling disclosed classified information about a clandestine operational program concerning Iran’s nuclear weapons program to a New York Times reporter in 2003.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
“For his own vindictive purposes, Jeffrey Sterling carelessly disclosed extremely valuable, highly classified information that he had taken an oath to keep secret,” said U.S. Attorney Boente. “His attempt to leverage national security information for his own malicious reasons brought him to this sentence today. I would like to thank the trial team and our partners at the FBI’s Washington Field Office and the Central Intelligence Agency for their hard work and commitment to this case.”
“The sentence handed down by a federal judge is the culmination of a lengthy investigation, a protracted prosecution and a unanimous decision by a federal jury to convict Mr. Sterling for the unauthorized disclosure of national security information,” said Assistant Director in Charge McCabe. “The time and effort dedicated to this case by FBI special agents, intelligence analysts and prosecutors working on this matter exemplify the extent the FBI will undertake in pursuit of justice.”
Sterling was found guilty by a federal jury on Jan. 26, 2015. According to court records and evidence at trial, Sterling was employed by the CIA from May 1993 to January 2002. From November 1998 through May 2000, he was assigned to a classified clandestine operational program designed to undermine the Iranian nuclear weapons program. He was also the operations officer assigned to handle a human asset associated with that program, a person identified at trial as Merlin. Sterling was reassigned in May 2000, at which time he was no longer authorized to receive or possess classified documents concerning the program or the individual.
In connection with his employment, Sterling, who is a lawyer, signed various security, secrecy and non-disclosure agreements in which he agreed never to disclose classified information to unauthorized persons, acknowledged that classified information was the property of the CIA, and also acknowledged that the unauthorized disclosure of classified information could constitute a criminal offense. These agreements also set forth the proper procedures to follow if Sterling had concerns that the CIA had engaged in any “unlawful or improper” conduct that implicated classified information. These procedures permit such concerns to be addressed while still protecting the classified nature of the information. The media was not an authorized party to receive such classified information.
In August 2000, Sterling pursued administrative and civil actions against the CIA. Evidence at trial showed that Sterling, in retaliation for the CIA’s refusal to settle those actions on terms favorable to him, disclosed information concerning the classified operational program and the human asset to a New York Times reporter working on an unpublished article in early 2003 and a book the reporter published in January 2006. Sterling’s civil and administrative claims were ultimately dismissed by the court.
Evidence demonstrated that in February and March 2003, Sterling made various telephone calls to the reporter’s residence and e-mailed a newspaper article about the weapons capabilities of a certain country that was within Sterling’s previous clandestine operational assignment. While the possible newspaper article containing the classified information Sterling provided was ultimately not published in 2003, evidence showed that Sterling and the reporter remained in touch from December 2003 through November 2005 via telephone and e-mail. In January 2006, the reporter published a book that contained classified information about the program and the human asset.
Evidence at trial showed that Sterling was aware of a grand jury investigation into the matter by June 2006 when he was served a grand jury subpoena for documents relating to the reporter’s book. Nevertheless, between April and July 2006, Sterling deleted the e-mail containing the classified information he had sent from his account in an effort to obstruct the investigation.
This case was investigated by the FBI’s Washington, D.C., Field Office, with assistance in the arrest from the FBI’s St. Louis Field Office. This case was prosecuted by Assistant U.S. Attorneys James L. Trump and Dennis M. Fitzpatrick of the Eastern District of Virginia, and Trial Attorney Eric G. Olshan of the Criminal Division’s Public Integrity Section.
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Federal Jury Convicts Topeka Man of Producing Child PornographyRead the Press Release
TOPEKA, KAN. – A federal jury has convicted a Topeka man of producing child pornography, U.S. Attorney Barry Grissom said today.
Jonathan Kearn, 40, Topeka, Kansas, was convicted Friday on one count of producing child pornography, one count of distributing child pornography and one count of possessing child pornography.
During trail, prosecutors presented evidence that the investigation began in April 2013 when Homeland Security Investigations received a report from the Queensland Police Service, Queensland, Australia. An Australian investigator had received emails from Kearn in Kansas containing child pornography Kearn had produced. The child pornography included images of a child under six years old.
Sentencing is set for Aug. 10. He faces a penalty of not less than 15 years in federal prison on the production count, not less than five years on the distribution charge, and a maximum penalty of 10 years on the possession charge. Grissom commended Homeland Security Investigations, the Topeka Police Department, the Queensland Police Service and Assistant U.S. Attorney Christine Kenney for their work on the case.
Federal Jury Convicts Sex Offender for Failure to RegisterRead the Press Release
Ronald W. Paul, 74, of Gainesboro, Tennessee, was found guilty of failing to report his residence as required by the federal Sex Offender Registration and Notification Act, announced David Rivera, United States Attorney for the Middle District of Tennessee.
Following a trial before U.S. District Court Judge William J. Haynes, Jr., the jury found Paul guilty on three separate counts of failing to register under the Sex Offender Registration and Notification Act. The evidence at trial proved that Paul, who had been convicted of rape and was therefore required to register as a sex offender, failed to report his residence and whereabouts to authorities at various times between 2009 and 2011. Specifically, Paul traveled back and forth to the Philippines without reporting his travels to law enforcement and resided at an address in Gainesboro without reporting this address. By doing so, Paul failed to keep his sex offender registration current.
The Sex Offender Registration and Notification Act is designed to protect the public from sex offenders by establishing a comprehensive national system for the registration of those offenders by tracking their interstate movement. Under federal law, it is a felony for a sex offender to fail to register or update his or her registration.
Paul faces up to 10 years in prison and a fine of up to $250,000 for each count.
The case was investigated by the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorneys S. Carran Daughtrey and William F. Abely.
Exeter Man Charged with Distributing Crack CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an indictment was returned on Tuesday, May 5, 2015, by a grand jury in Scranton charging an Exeter man with distribution of crack cocaine.
According to United States Attorney Peter J. Smith, the indictment charges that Sekou Lashley, age 36, of Exeter, Pennsylvania, distributed cocaine base (crack) in Plains Township, Pennsylvania, on March 19, 2015.
The investigation was conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney Peter Hobart is prosecuting the case.
The maximum penalty under federal law for distributing cocaine is 20 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine.
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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Embezzler Sentenced to 41 Months in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James Moody has sentenced John Yates (42, Ruskin) to three years and five months in federal prison for mail fraud and access device fraud. As part of his sentence, the Court also entered a money judgment in the amount of $286,279.50, which are the proceeds traceable to his criminal conduct. Yates pleaded guilty on January 29, 2015.
According to court documents, in January 2009, Yates was employed by Federal Marine Terminals (FMT) as the manager of the Port Tampa Bay office. As manager, he would oversee the movement of inbound import shipping containers that had been identified for inspection by U.S. Customs and Border Protection. He would then bill customers for FMT’s services in the form of invoices. Yates was responsible for preparing, mailing, and faxing the invoices. Customers were directed to mail payments FMT’s facility in Port Manatee.
In December 2011, while Yates was on vacation, another FMT employee discovered five invoices that looked like FMT invoices, but directed payments to “THW,” in Tampa. A subsequent investigation revealed that the THW payments were deposited into a bank account controlled by Yates. Eighty-nine companies remitted payments to Yates totaling $270,279.50. He was subsequently fired from his position.
After being fired from FMT, Yates was hired as a dispatcher by JRC Transportation, Inc., a large trucking company. There, Yates entered phantom loads into JRC’s system and diverted the related payments back to him. Yates embezzled approximately $30,000 from JRC.
This case was investigated by the U.S. Postal Inspection Service and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
East St. Louis Man Sentenced to 120 Months in Federal Prison for Drug, Attempted Robbery, and Firearm OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Micky Gibb, 25, of East St. Louis, Illinois, was sentenced on Friday by United States District Court Judge David R. Herndon to 120 months in federal prison for committing four felonies in July 2013: (1) conspiracy to possess with intent to distribute cocaine; (2) attempted interference with commerce (robbery); (3) using or carrying firearms in furtherance of a drug trafficking offense and a crime of violence; and (4) possession of a firearm by a convicted felon.
According to court documents, in July 2013, Gibb agreed with two men to rob a drug stash house containing cocaine. Gibb’s codefendants brought two loaded firearms with them to assist in the robbery. ATF agents, who had been investigating Gibb and his codefendants’ plans to commit the robbery, arrested the three men in St. Louis. Gibb was charged in federal court in East St. Louis, Illinois with four charges and pled guilty to all counts.
Gibb was sentenced to a total of 120 months in federal prison. There is no parole in the federal prison system. In addition to the prison sentence, Gibb must serve a total of five years of supervised release and pay $400 in court fees.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant United States Attorney Monica A. Stump was assigned the prosecution.
Eagle Butte Man Sentenced for Assault by Striking, Beating and WoundingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault by Striking, Beating and Wounding was sentenced on May 8, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Loren LaPlante, Jr., age 24, was sentenced to 18 months of probation, $100.96 in restitution, and $25 to the Federal Crime Victims Fund.
LaPlante was indicted by a federal grand jury on February 11, 2015. He pled guilty on March 16, 2015.
The conviction stems from an incident on January 9, 2015, when LaPlante, who was intoxicated in a bar in Dupree, got into a verbal confrontation with an adult male victim who was playing darts. Once the victim was done playing darts, he approached LaPlante, who sucker-punched the victim in the face. The Defendant’s assault was made without just cause or excuse, and it struck and wounded the victim, who needed medical attention for the injury to his face.
This case was investigated by the Cheyenne River Sioux Tribal Law Enforcement Agency. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Dublin Resident Sentenced in False Tax Refund SchemeRead the Press Release
OAKLAND – Kenya Brown was sentenced Friday, May 8, 2015, to twelve months in prison and ordered to pay $221,124 in restitution for her involvement in a false tax refund scheme, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
Brown, 31, of Dublin, Calif., pleaded guilty today to conspiracy to file a false claim. According to the plea agreement, from April 2009 through June 2011, Brown conspired to file more than 139 false federal income tax returns with the IRS. As part of the conspiracy, Brown electronically filed false returns from residences in San Leandro and Oakland. The tax returns requested refunds based on fictitious W-2 forms. To carry out the scheme, Brown instructed the IRS to wire the fraudulent refunds onto debit cards. In total, Brown filed documents seeking in excess of $700,000 in false tax refunds.
On January 8, 2015, Brown was charged in a nine count indictment with conspiracy to file false claims, wire fraud, theft of public money, and aggravated identity theft. Brown pleaded guilty to conspiracy to file false claims. At sentencing, Brown was also ordered to pay restitution in the amount of $221,124.Brown is already in custody as a result of a prior conviction. During the execution by the IRS of a search warrant at Brown’s home on July 28, 2011, she was found in possession of nearly two pounds of cocaine and a firearm. Brown was charged with possession with the intent to distribute cocaine and being a felon in possession of a firearm. On December 7, 2011, as the tax investigation continued, Brown was sentenced on the drug and weapons charges, and is serving a 60 month sentence on those charges.
Assistant U.S. Attorney Thomas Newman is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Drug Free Clubs of America honored for innovative commitment to drug preventionRead the Press Release
Drug Free Clubs of America honored for innovative commitment to drug prevention
WHEELING, WEST VIRGINIA – Drug Free Clubs of America was presented today with the 2015 Community Outreach Award from United States Attorney William J. Ihlenfeld, II, in recognition of its commitment to drug prevention.
In 2005, a dedicated group of firefighters in Cincinnati, were determined to find a way to loosen the grip of substance abuse in their community. Their vision was to remove the powerful temptation of peer pressure and make it easy for young people to make informed, healthy decisions. They founded Drug Free Clubs of America and developed a creative program. Students that join drug free clubs are subject to periodic, random drug tests. Schools, restaurants, and businesses provide those students with discounts and other incentives to remain drug free. Perhaps most importantly, Drug Free Clubs members are provided with a tangible membership card that students can show when they are faced with the fierce temptation of peer pressure.
Today, Drug Free Clubs of America is a thriving non-profit organization with chapters throughout Ohio, Kentucky, and West Virginia. In 2010, Wheeling Central Catholic High School opened the first Drug Free Clubs chapter in West Virginia and recently became the second school in the country where students choosing not to participate in Drug Free Clubs are in the minority. This year, over 750 West Virginia teens are members of Drug Free Clubs. Wheeling Park High School has the largest chapter in West Virginia with over 230 student members.
Drug Free Clubs has developed a variety of creative partnerships in West Virginia. In 2012, West Liberty University became the first higher education program to offer a scholarship to any student who was a member of Drug Free Clubs for all four years of high school. Student leaders from Drug Free Clubs chapters in the northern panhandle have partnered with the United States Attorney’s Office to produce an innovative series of drug awareness videos.
The United States Attorney’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.
Dorchester Gang Member Sentenced to over Twelve Years in Prison for Sex Trafficking MinorsRead the Press Release
Boston – A Dorchester man was sentenced today in U.S. District Court in Boston for sex trafficking minors.
Miriam Kizzie, a/k/a “Keys” and “Keyshawn,” 21, was sentenced by U.S. District Court Judge William G. Young to 153 months in prison and five years of supervised release. In February 2015, Kizzie pleaded guilty to two counts of sex trafficking of two minor women.
In July 2013, Kizzie met a 14-year-old and a 15-year-old girl, and, shortly thereafter, photographed the girls in suggestive poses. Kizzie created online advertisements for commercial sex using their photographs and posted the ads on the Internet. Over the course of the next week, both girls were repeatedly advertised online for prostitution and continued to see prostitution clients, primarily in Dorchester apartments, but also in the apartments of men who responded to the advertisements.
At today’s sentencing hearing, the mother of each victim addressed the court explaining the impact that the trafficking had on their teenage daughters and their families. One of the victims, now 16-years-old, addressed the court herself and described not only the impact of Kizzie’s actions but also her ongoing struggles as a result of the crime. She said, “He broke me. He lied to me. I’ve spent the past almost two years trying to put myself back together again.”
In addition to the charges against Kizzie, the indictment charged Anthony Pledger, a/k/a “Polo,” and “Jaden,” 26, with sex trafficking two other minors in October 2013 in Massachusetts in Rhode Island. Court documents allege that Pledger and Kizzie were members of the Thetford Avenue Buffalos, a local Boston street gang. In February 2015, Pledger pleaded guilty to two counts of sex trafficking the two minors and is scheduled to be sentenced on May 28, 2015.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans made the announcement today. The case was also investigated by the Rhode Island State Police, Massachusetts State Police, and the Brookline, Providence, Brockton, and Dedham Police Departments. Significant assistance was provided by the Rhode Island Attorney General’s Office and the Plymouth, Middlesex and Suffolk County District Attorney’s Offices. The case is being prosecuted by Assistant U.S. Attorneys Amy Harman Burkart and Timothy E. Moran of Ortiz’s Civil Rights Enforcement Team.
Members of the public who have questions, concerns, or information regarding this case should call (617) 748-3274, and messages will be promptly returned.
Depew Man Pleads Guilty to Child Pornography 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 Mark Newman, 56, of Depew, NY, pleaded guilty to possession of child pornography, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on September 26, 2012, a search warrant was executed at the defendant's residence. Items seized from Newman’s residence that contained child pornography included a Toshiba laptop computer. A forensic analysis uncovered approximately 300 videos of child pornography stored on the computer. Some of the images depicted prepubescent minors or minors less than 12 years of age, as well as images of violence. In addition, as part of the plea agreement, Newman admitted that he has engaged in a pattern of sexual abuse of a minor.
The plea is the result of an investigation on the part of Agents of the Federal Bureau of Investigation.
Sentencing is scheduled for August 13, 2015, at 4:00 p.m. before Judge Wolford.
DeLand Man Sentenced to 65 Years for Child ExploitationRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced David Jacob William Guite (31, DeLand) to 65 years in federal prison for producing and distributing child pornography. Guite pleaded guilty on February 20, 2015.
According to court documents, an FBI task force officer, acting in an undercover capacity, posted an advertisement on a website frequented by individuals who have a sexual interest in children and incest. Guite responded to the ad and, during the ensuing conversation, sent the agent sexually explicit images of a young boy.
On October 29, 2014, FBI agents executed a federal search warrant at Guite’s residence. During an interview, he admitted to manufacturing, possessing, and distributing sexually explicit images of minor children. A search and subsequent analyses of Guite’s smart phone and computer revealed hundreds of sexually explicit images and videos of young children.
This case was investigated by the Federal Bureau of Investigation, the DeLand Police Department, and the Volusia County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dasean Nisbett of Bronx, New York Sentenced to Time Served for Possession with Intent to Distribute OxycodoneRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Dasean Nisbett, 24, of Bronx, New York was sentenced today to time served and three years of supervised release based on his arrest for possession with intent to distribute Oxycodone pills. U.S. District Judge William K. Sessions III also ordered that Nisbett submit to a period of home detention and location monitoring, as well as complete 100 hours of community service.
According to court records, on March 3, 2013, Nisbett arrived in Burlington after midnight on the Megabus from New York City. After a police canine alerted on the area of the bus where Nisbett had been sitting, University of Vermont Police approached Nisbett as he walked down Main Street. Nisbett denied having anything illegal in his possession and permitted law enforcement to search his person. A subsequent search revealed a bag of 1,000 oxycodone pills concealed in Nisbett’s underwear. Nisbett was subsequently indicted federally for possession with intent to distribute oxycodone.
This matter was investigated by the U.S. Drug Enforcement Administration and the University of Vermont Police Department. The government was represented by Assistant U.S. Attorney Kevin Doyle. Dasean Nisbett was represented by Michael L. Desautels, the Federal Defender for the District of Vermont.
Contractor charged with bribery of postal managerRead the Press Release
A contractor for the U.S. Postal Service’s Vehicle Maintenance Facility in Cleveland was charged with bribing a public official, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Monica Weyler, Special Agent in Charge of the U.S. Postal Service’s Office of Inspector General Eastern Area Field Office.
Andrew Maloney, Jr., 37, of Bedford Heights, was charged by criminal information with a single count of bribery of a public official.
The information charges that Maloney received a contract for vehicle maintenance and repair with the Postal Service Vehicle Maintenance Facility at 1801 Broadway Avenue in Cleveland. The information alleges that the Facility’s manager, Kevin R. Hood, used his position to extort cash bribes and vehicle repair services from Maloney in exchange for work under the contract. According to the information, Maloney made cash payments and provided free services to Hood between May 2011 and December 2013 to secure and maintain the contract.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Miranda E. Dugi following an investigation by special agents of the U.S. Postal Service’s Office of Inspector General.
Chamberlain Man Sentenced for LarcenyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Chamberlain, South Dakota, man convicted of Larceny was sentenced on May 11, 2015, by U.S. District Judge Roberto A. Lange.
James Short Bear, age 19, was sentenced to 8 months in custody, $500 in restitution, and a special assessment of $100 to the Federal Crime Victims Fund.
Short Bear was indicted by a federal grand jury on February 11, 2015. He pled guilty on March 26, 2015.
The conviction stems from an incident which occurred between February 11, 2014, and February 13, 2014, when Short Bear entered the Lower Brule Sioux Tribal administration building and stole a ceremonial pipe known as a Chanupa. The Chanupa had been purchased by the Tribe in 2006 for $5,500. Short Bear was captured on video entering the building and leaving a short time later with the Chanupa. After a few months had passed, Short Bear pawned the pipe for $500, claiming he had made it himself.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Lower Brule Law Enforcement Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Short Bear was immediately turned over to the custody of the U.S. Marshals Service.
Cabell County man pleads guilty for failure to register as a sex offenderRead the Press Release
HUNTINGTON, W.Va. - A 55-year old Cabell County man faces up to 10 years in prison after pleading guilty today to failing to register as a sex offender, U.S. Attorney Booth Goodwin announced. Daniel Walter Varnes, of Huntington, West Virginia, entered a guilty plea before Chief District Court Judge Robert C. Chambers.
Varnes was convicted in 2000 in Colorado of Sexual Assault of a Child Under Age 15 by a Person in a Position of Trust. As a result of that conviction, Varnes was required to register as a sex offender. In August of 2014, Varnes moved to Huntington, West Virginia, and did not register as a sex offender despite knowing it was required by law. He continued to reside and work in Huntington without registering until his arrest on February 6, 2015.
The court scheduled sentencing for Varnes for August 10, 2015, in Huntington, West Virginia.
The United States Marshals Service and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Brothers Sentenced to Federal Prison for Delivery of Heroin Resulting in DeathRead the Press Release
PORTLAND, Ore. - Gerardo Chalke Lopez (a.k.a. “La Loca”), 41, and Sergio Quezada-Lopez (a.k.a. “Cheche” , 36, of Nayarit, Mexico, appeared for sentencing on April 28 and April 29, 2015, before U.S. District Judge Michael Simon. The brothers were sentenced to 18 and 15 years prison, followed by five years of supervised release, and ordered to pay restitution for their roles in a conspiracy to distribute heroin, that resulted in death of a young woman. The brothers were also sentenced each to 27 months prison on illegal re-entry charges to run concurrent with the drug sentences.
The investigation began on April 16, 2012 when police officers responded to the Keizer, Oregon residence of 21 year old Laurin Putnam, who was found deceased. The initial investigation indicated that her death was likely caused by a heroin overdose and later confirmed by the Oregon State Medical Examiner’s Office. Soon after her death, investigators learned the identity of the last person in the chain that was responsible for distributing the heroin to Putnam that caused her death. From there, investigators were able to identify several conspirators and move six levels up the chain of distribution to brothers Gerardo Chalke Lopez and Sergio Quezada-Lopez. During the investigation, agents learned that the brothers were higher level members of a large scale conspiracy involving the distribution of significant quantities of heroin in Oregon, Washington, Nevada, and Colorado.
The investigation of the case was led by the Drug Enforcement Administration (DEA) through its Salem DEA Drug Task Force, and the Keizer Police Department with assistance from the Salem Police Department; the Marion County Sheriff's Office; the Oregon State Police; the Washington County Interagency Narcotics Team (WIN); the Portland Police Bureau; the Oregon State Medical Examiner; the Clark-Skamania Drug Task Force; the Oregon Department of Justice; and, the Portland based Highway Interdiction Team.
The case was prosecuted by Assistant U.S. Attorneys Kemp Strickland and Kathleen Bickers.