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Wednesday 18 March 2015
Milwaukee Woman Indicted for Aiding and Assisting in the Filing of False Federal Income Tax ReturnsRead the Press Release
United States Attorney James L. Santelle for the Eastern District of Wisconsin, announced that on March 10, 2015, a federal grand jury returned a five-count indictment against Tina M. Gentry (age: 47) of Milwaukee, Wisconsin, charging her with filing false claims against the United States for tax refunds in violation of Title 18, United States Code, Section 287. If convicted of these offenses, Gentry faces a sentence of up to 5 years imprisonment, a $250,000 fine, and up to three years of supervised release on each of the five counts.
According to the indictment, Gentry assisted individuals in falsely obtaining federal income tax refunds from the Internal Revenue Service. To obtain the refunds, Gentry prepared tax returns claiming false and fraudulent federal taxable income and federal income tax withheld, when she knew that none of the individuals she prepared returns for had federal taxable income or federal income tax withheld. In total, Gentry caused approximately 112 federal income tax returns to be filed with the Internal Revenue Service, falsely claiming federal income tax refunds of more than $90,000.
The case was investigated by Internal Revenue Service Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Lisa Wesley.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Maryland Man Sentenced to 3 ½-Year Prison Term for Sexually Assaulting Woman in Northwest Washington WoodsRead the Press Release
WASHINGTON – Christopher Wallace, 30, formerly of Bladensburg, Md., was sentenced today to 42 months in prison for attempting to sexually assault a woman in a park last year, U.S. Attorney Ronald C. Machen Jr. announced.
Wallace pled guilty in December 2014, in the Superior Court of the District of Columbia, to a charge of attempted first-degree sexual abuse. He was sentenced by the Honorable Rhonda Reid Winston. Upon completion of his prison term, Wallace will be placed on 10 years of supervised release. He also will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, on April 1, 2014, at about 7:30 p.m., the victim and Wallace exited a Circulator bus near the Georgetown waterfront in Northwest Washington. Wallace, whose name was not known to the victim, directed the victim to the Capital Crescent Trail, which they walked along until entering Glover-Archbold Park. At that point, the victim confronted Wallace over going further into the woods. Wallace grabbed her by her hair and directed her further into the woods. He then sexually assaulted her.
Afterwards, the victim immediately went to a hospital and reported the assault. She described a distinctive tattoo that her assailant had on his hand, which law enforcement used along with other leads to identify Wallace. He has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Machen praised the work performed by those who investigated the case from the United States Park Police and Metro Transit Police Departments. He also expressed appreciation for the assistance of the Metropolitan Police Department. He acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins and Paralegal Specialist Jason Manuel. Finally, he commended the work of Assistant U.S. Attorney Jeff T. Cook, who investigated and prosecuted the matter.
Man Sentenced for Tampering with Blowout Preventer Testing RecordsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SEAN GRANGER, 36, of Rayne, Louisiana, was sentenced today for knowingly and willfully tampering with a method of record required to be maintained under the Outer Continental Shelf Lands Act.
U.S. District Judge Sarah S. Vance sentenced GRANGER to three years probation and ordered him to pay a $3,000 fine.
According to court documents, on June 4, 2012, GRANGER was employed as a coil tubing supervisor to perform coil tubing services on a well at a drilling rig located in the Gulf of Mexico at Ship Shoal 359 in the Eastern District of Louisiana. Prior to starting the contracted coil tubing services at Ship Shoal 359, GRANGER tested his coil tubing unit’s blowout preventer. A coil tubing unit should not be placed into service for the contract until all the BOP components pass pressure testing.
The results of BOP tests are recorded on a circular graphic chart known as the BOP pressure test chart. To record pressures, a test chart is placed into a chart recorder that has a needle with a pen attached to it. As the recorder spins, the needle makes a record on the test chart of how much pressure the BOP components are holding. The BOP test chart is the record that inspectors review to determine if the BOP units are functioning properly.
On June 4, there were irregularities in the BOP testing process. Rather than take action to properly document the pressures of the BOP components or remedy the irregularities in the testing, GRANGER tampered with the pressure test chart by spinning it on the recorder. When inspectors reviewed the pressure test chart a few days later, they were unable to determine whether the BOP on the coil tubing unit was functioning properly.
U.S. Attorney Polite praised the work of the Department of Interior-Office of Inspector General and Bureau of Safety and Environmental Enforcement for their work on this matter. Assistant United States Attorney Emily K. Greenfield of the National Security Unit was in charge of the prosecution.
Lincoln County nurse pleads guilty to obtaining drugs by fraudRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Betty Jo Tudor, 35, of Alkol, West Virginia, pleaded guilty today in federal court in Charleston to obtaining hydrocodone by fraud. Tudor, a former nurse at Sweetbriar Assisted Living in Dunbar, West Virginia, admitted that in June of 2013 she stole hydrocodone intended for patients for her own personal use and falsified records to cover up the theft.
Tudor faces up to 4 years in prison and a $250,000 fine. United States District Judge John T. Copenhaver, Jr., scheduled the sentencing for June 18, 2015.
The case is being investigated by the Drug Enforcement Administration and the United States Department of Health and Human Services. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States 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.
Las Vegas Attorney and Three Others Convicted for Their Roles in a Fraudulent Scheme to Take over Homeowners’ AssociationsRead the Press Release
Following a 14-day trial, a federal jury in Las Vegas returned guilty verdicts yesterday in a case against a Las Vegas attorney and three others for their roles in a scheme to fraudulently take control of homeowners’ associations (HOAs) for the purpose of directing the HOAs’ construction defect litigation and repair work to a law firm and construction company owned by other co-conspirators.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office, Special Agent in Charge John Collins of Internal Revenue Service Criminal Investigation’s (IRS-CI) Las Vegas Field Office and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department made the announcement.
Keith Gregory, 61, of Las Vegas, Salvatore Ruvolo, 86, of Henderson, Nevada, David Ball, 47, of Las Vegas, and Edith Gillespie, 54, of Las Vegas, were found guilty yesterday of conspiracy to commit wire and mail fraud. Gregory and Ball were also convicted of two counts of wire fraud each, Ruvolo was convicted of three counts of wire fraud, and Gillespie was convicted of one count of wire fraud. Ruvolo was found not guilty of one count of mail fraud. Sentencing hearings are scheduled for June 17, 2015, before U.S. District Judge James C. Mahan of the District of Nevada.
According to the evidence presented at trial, from approximately August 2003 through February 2009, the defendants engaged in a complex scheme to direct construction defect litigation and construction repairs at more than 10 condominium complexes in the Las Vegas area to a law firm operated by a co-conspirator and a construction company, Silver Lining Construction, owned by Leon Benzer. In order to accomplish the scheme, the defendants and their co-conspirators identified HOAs for condominium complexes that had potential construction issues that could result in construction defect litigation and require repair. They then sought to take controlling interests on the identified HOAs’ boards by purchasing units in the condominium complexes and running for election to the boards.
Specifically, the evidence at trial demonstrated that Benzer and others, including Gillespie, enlisted “straw purchasers” to use their names and credit to purchase condominiums in the identified complexes. Ruvolo, Ball and Gillespie, among others, acted as straw purchasers, and the evidence demonstrated that Gillespie provided false information on her loan application in connection with the purchase of a condominium in furtherance of the scheme.
According to the evidence, Ruvolo and Ball then sought to be elected to HOA boards in the complexes where they had purchased condominiums. Other straw purchasers were directed to transfer a partial interest in their condominiums to other co-conspirators to make them look like homeowners who could stand for election to the HOA boards. To ensure that conspirators won the HOA elections, the defendants employed deceitful tactics, such as submitting fake and forged ballots, and hiring complicit attorneys to run the elections as “special election masters,” who presided over the elections and supervised the counting of ballots.
The evidence demonstrated that, once elected, the conspiring board members, including Ruvolo and Ball, met with Benzer and other co-conspirators in order to manipulate the selection of property managers, contractors, general counsel and construction defect attorneys to represent the HOAs. Gregory, an attorney licensed in Nevada, agreed to become the general counsel for two HOAs and to take direction from Benzer.
At trial, the evidence showed that 33 of the 37 condominium units purchased as part of the scheme went into foreclosure. Over the course of the scheme, more than $7 million in construction contracts were awarded to Benzer’s company from a single HOA. Several million dollars in legal fees were also directed to another co-conspirator. Benzer compensated each of the defendants for their participation in the fraud scheme. For example, the evidence demonstrated that Ruvolo received monthly payments of approximately $2,000, and Ball received $5,000 per year, for acting as straw purchasers and board members. Benzer also directed approximately $90,000 in HOA-related legal work to Gregory and paid him approximately $12,000 in kickbacks.
On Jan. 23, 2015, Benzer pleaded guilty to one count of conspiracy to commit mail and wire fraud, fourteen counts of wire fraud, two counts of mail fraud, and two counts of tax evasion. He is awaiting sentencing.
The case was investigated by the FBI, IRS-CI and the Las Vegas Metropolitan Police Department, Criminal Intelligence Section. The case is being prosecuted by Deputy Chief Charles La Bella and Trial Attorneys Thomas B.W. Hall and Alison L. Anderson of the Criminal Division’s Fraud Section.
This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Jury Finds Rogers Man Guilty of Kidnapping Texas WomanRead the Press Release
Crime planned over four months to prevent woman from testifying in criminal case
Fayetteville, Arkansas – Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Theron Vance, age 22 of Rogers, was found guilty on one count of Conspiracy to Commit Kidnapping and one count of Kidnapping, Aiding, and Abetting after a two day jury trial. The Honorable Timothy L. Brooks presided over the trial in the United States District Court in Fayetteville.
U.S. Attorney Eldridge commented, “The sheer terror that this victim faced at the hands of the defendants involved in this case is unimaginable. For four months they planned a methodical scheme that they then played out in order to keep her from testifying against one of them. We will not rest in our efforts to hold those that commit these violent crimes accountable so that the residents of the Western District of Arkansas can live in a community free from fear.”
“Vance is a criminal who conspired to kidnap and impersonated a FBI Agent while carrying out this violent act,” stated Special Agent in David T. Resch with the Little Rock FBI Field Office. “He has earned the consequences of his decisions, and we once again appreciate the U.S. Attorney’s steadfast pursuit of justice.”
According to evidence presented at the trial, On June 14, 2014, the Bentonville Police Department received a 911 call from an employee at the Walmart Supercenter that a woman had been kidnapped. Once officers arrived on scene they were able to determine the victim entered the restroom at Walmart and handed an employee a note informing them that she had been kidnapped from Dallas, Texas by her ex-boyfriend Michael Roberts. By the time officers arrived at Walmart, Roberts had fled the scene. According to an interview of the victim, the previous night between 6:00 p.m. and 6:30 p.m. she was walking into her apartment in Dallas, Texas when she was attacked from behind by Michael Roberts and physically assaulted. The defendant, Theron Vance, was present and assisted Roberts by acting as the lookout. Roberts forced the victim into her apartment and began restraining and choking her when Vance entered the apartment and identified himself as an FBI agent. The victim was told she could either go with the two men or she would be killed. The victim cooperated and packed a bag with her belongings. She was also told to write a note to her roommate explaining her disappearance. She did so, but also left another note in the refrigerator that said “call 911.” The victim was then transported against her will to the Western District of Arkansas in Bentonville by Roberts and Vance. Prior to leaving the Dallas area, defendant Vance took the victim’s phone and broke it on the sidewalk, making it inoperable. On the way to Bentonville the victim advised they stopped in Eufaula, Oklahoma at a gas station, where she left another note in the restroom identifying the vehicle in which she was being transported (this note was later recovered by Oklahoma Police). The victim was brought to the defendant’s residence located at 807 Southwest Krug in Bentonville during the early morning hours of June 14th. Later that day the victim was taken to Walmart where the employee was notified that she had been kidnapped.
While interviewing the victim officers noted that her lip appeared to be busted on the inside of her mouth and she had a large bruise on her right forearm. According to the victim, she was told by Roberts and Vance that she had been kidnapped because they did not want her to testify against Roberts in a pending criminal case in Texas and that they were going to keep her until the proceedings were over. The victim was able to positively identify defendant Vance as one of the individuals that kidnapped her and transported her from Dallas, Texas to Bentonville, Arkansas against her will.
As the Bentonville Police Department was investigating the case, Detectives with the Dallas Police Department searched the victim’s apartment and located the two notes and also found a blood stain on the carpet. Bentonville Detectives then executed a search warrant at defendant Roberts’ residence, where they located the victim’s bloody clothing.
On June 16, 2014, defendant Vance was located and arrested. Subsequent to being advised of and waiving his Miranda rights he admitted his role in the kidnapping. Specifically, Vance admitted that approximately four months prior to the kidnapping that he and Roberts began planning; Vance admitted that a week prior to the abduction, he and Roberts drove to Dallas to scout the area; Vance admitted to wearing a fake FBI badge during the abduction and breaking the victim’s cell phone so they would not be tracked. In addition, Vance disclosed to investigators the location of several items used in the kidnapping, including a blonde wig, razor blades, zip ties and a book on human anatomy. These items were subsequently recovered by investigators. Furthermore, Vance’s vehicle was used to transport the victim from Texas to Arkansas.
Vance was indicted by a Federal Grand Jury in August 14, 2014. Sentencing will be held at a later date. The maximum penalty for each count is Life in Prison or any term of years, not more than $250,000 fine, or both. 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 violations. The sentence will not exceed the statutory maximum for each count in this case, and in most cases will be less than the maximum.
The other two defendants involved in this case, Michael Roberts and Jason Pettit have both pleaded guilty and are awaiting sentencing.
This case was investigated by the Bentonville Police Department, The Federal Bureau of Investigations, and the Dallas Police Department. Assistant United States Attorney David Harris and Assistant United States Attorney Kim Davis prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Jasper Tax Preparer and Jefferson County Inmate IndictedRead the Press Release
BEAUMONT, Texas –An east Texas man and woman have been charged with federal income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Derek Cornelius Briscoe, also known as Terrance Briscoe, also known as Derek Anderson, 36, of Jasper, Texas, and Angela Dunaway, also known as Angela Coudrain, 45, an inmate in Jefferson County Jail in Beaumont, Texas, appeared before U.S. Magistrate Judge Zack Hawthorn today.
Briscoe and Dunaway were indicted on Mar. 5, 2015, and charged with one count of conspiracy to commit wire fraud. Briscoe was also charged with eight additional counts of preparing false tax returns.
According to information presented in court, Briscoe held himself out as a tax preparer sometimes doing business as “Thaferrets Tax Service” from his residence in Jasper, Texas. Briscoe maintained contacts with the female inmates at the Jefferson County Jail in Beaumont, Texas. Briscoe offered those inmates a fee in exchange for personally identifying information of other inmates that could be used to facilitate the filing of false tax returns. Dunaway was one of those inmates who supplied Briscoe with the personally identifiable information of other inmates to file false tax returns. The information was transmitted to Briscoe by means of recorded collect phone calls placed from the Jefferson County Jail. Briscoe also utilized JPay services to transmit money to conspirators and inmates. JPay is an entity organized for the purpose of facilitating communication and financial transactions between inmates and non-inmates. As part of the scheme, the false tax returns contained false wage, income and employment information, false education credits, false Making Work Pay Credit forms and false or nonexistent home addresses for taxpayers. Brisco and Dunaway aided in the preparation and electronic filing of over 500 false federal income tax returns for the tax years 2009, 2010 and 2011 and requested fraudulent refunds in excess of $1 million.
If convicted, both Briscoe and Dunaway face up to 20 years in federal prison for the count of conspiracy to commit wire fraud. Briscoe faces an additional three years in federal prison for each of the eight counts for preparing false tax returns. Briscoe also faces the forfeiture of his personal residence in Jasper, Texas.
This case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Lesley Anne Bartow.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Jacksonville Man Sentenced to Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Anthony Vincent Burkitt, a/k/a “Vincent Thomas Wolfe,” (45, Jacksonville) to 27 months in federal prison for failing to register as sex offender after traveling to Florida from Maryland. He pleaded guilty on December 5, 2014. Burkitt has been in custody since his arrest on April 13, 2014.
According to court documents, on or about June 24, 2002, Burkitt was convicted of attempted second degree rape in Baltimore County, Maryland. Subsequent to his conviction, and after being released from prison, he traveled from Maryland to Jacksonville, where he established residency in February 2013, but failed to register as a sex offender as required by the federal Sex Offender Registration and Notification Act. On April 13, 2014, a Jacksonville Sheriff’s Office deputy was dispatched to a residence in Jacksonville, in reference to a domestic disturbance. At the time, Burkitt was living at the residence under the alias “Vincent Thomas Wolfe” and was arrested. Further investigation revealed that he was a sex offender, and that he had been living in Jacksonville since February 2013 without registering as required by law.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service (USMS), to assist state and local authorities in locating and apprehending non-compliant sex offenders. This case was investigated by the Jacksonville Sheriff’s Office, the USMS, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys D. Rodney Brown and Kelly S. Karase.
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.
Investigation into Drug Trafficking Organization in Carrol County Results in Six Defendants Being Sentenced to A Total of over 50 YearsRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that six individuals have been sentenced this week to a combined total of over 50 years in prison for drug-trafficking offenses stemming from an investigation into a drug-trafficking organization active in the Carroll County, Arkansas, area. The defendants were originally charged in an indictment returned by a Federal Grand Jury on May 7, 2014. The Honorable Robert T. Dawson, United States District Judge, presided over the sentencing hearings in Fort Smith.
The defendants sentenced this week are as follows:
Bryan McClelland, 51, of Eureka Springs, Arkansas, was sentenced to 121 months in prison followed by three years of supervised release for Conspiracy to Distribute Methamphetamine.
Shellie McClelland, 50, of Eureka Springs, Arkansas, was sentenced to 50 months in prison followed by two years of supervised release for Conspiracy to Distribute Methamphetamine.
Shane Stephenson, 37, of Berryville, Arkansas, was sentenced to 63 months in prison followed by three years of supervised release for Distribution of Methamphetamine.
Chad Mott, 35, of Oak Grove, Arkansas, was sentenced to 78 months in prison followed by three years of supervised release for Distribution of Methamphetamine.
Andrew Crane, 34, of Clinton, Missouri, was sentenced to 188 months in prison for Conspiracy to Distribute Methamphetamine, and to 60 months in prison for Travel in Interstate Commerce to Aid Drug Trafficking, to run concurrently, followed by three years of supervised release.
William Adcock, 40, of Hot Springs, Arkansas, was sentenced to 51 months in prison followed by two years of supervised release for Distribution of Methamphetamine.
U.S. Attorney Eldridge commented, “Children across our district deserve to grow up in communities free from trafficking in drugs and the violence and other crime that comes with it. We remain focused on identifying and prosecuting those responsible for bringing large amounts of methamphetamine and other drugs onto our streets. I appreciate the cooperative effort of local, state, and federal law enforcement who worked together to make certain that these defendants were brought to justice.”
“Drug traffickers inflict significant harm upon law-abiding communities without any regard for the violence and destruction that often accompanies their illegal activities,” said Acting Special Agent in Charge of HSI New Orleans Cindy M. Johnson. “This case illustrates the successful partnership between HSI, the DEA, and local partners with the Eureka Springs Police Department, Rogers Police Department, Springdale Police Department and the Washington County Sheriff’s Department to identify and bring Arkansas drug traffickers to justice.”
"We are relentless in our pursuit of drug trafficking organizations who prey on young people and ruin neighborhoods and communities. This organization kept the flow of methamphetamine steady into rural areas of Arkansas. The DEA and its law enforcement partners have long been dedicated to pursuing and weeding out these drug trafficking organizations by applying continuous pressure. We will continue to combine our resources to improve the safety of our communities for the good citizens of Arkansas and increase knowledge of the dangers of methamphetamine use,” stated DEA Assistant Special Agent in Charge David Downing.
According to court records, in 2013, the Drug Enforcement Administration and Homeland Security Investigations launched an investigation into a drug trafficking organization in Carroll County, Arkansas, headed by Bryan McClelland that had ties to Kansas and Missouri. During the course of the investigation, agents learned that Andrew Crane was supplying large quantities of methamphetamine to Bryan McClelland from a source in Kansas. After corroborating this information, agents were able to interview Crane, who after waiving his Miranda rights, admitted to agents that he had been delivering methamphetamine to Bryan McClelland. After receiving this methamphetamine, Bryan McClelland would distribute or sell quantities of methamphetamine to drug dealers under him who would then sell smaller quantities of methamphetamine to users, or McClelland himself would sell directly to users. Law enforcement made several controlled purchases of methamphetamine from Adcock, Stephenson, Mott, and Bryan McClelland. Agents were able to identify Shellie McClelland as a co-conspirator in the organization with her husband, Bryan McClelland. On May 8, 2014, law enforcement executed a search warrant which resulted in the seizure of 18 firearms and over $24,000 in United States currency. Shellie McClelland, Bryan McClelland, and Chad Mott were each arrested on May 8, 2014, and pleaded guilty to their respective charges on September 29, 2014. Stephenson was arrested on May 27, 2014, and pleaded guilty September 18, 2014. Adcock was arrested July 1, 2014, and pleaded guilty September 18, 2014. Crane was arrested June 2, 2014, and pleaded guilty to the charge of Conspiracy to Distribute Methamphetamine on September 18, 2014, and to the charge of Travel in Interstate Commerce to Aid Drug Trafficking on November 6, 2014.
This case was investigated by the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Eureka Springs Police Department, the Rogers Police Department, the Springdale Police Department, and the Washington County Sheriff’s Department. Due to its impact on multiple states, this investigation was designated an OrganizedCrime Drug Enforcement Task Force (“OCDETF”) investigation. Assistant United States Attorney Candace Taylor prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
ID Theft Conspiracy Leader Sentenced to 16 Years in Federal Prison and Ordered to Pay $88,131 in RestitutionRead the Press Release
DALLAS — A Cedar Hill, Texas man, who was convicted at trial on various federal felony offenses stemming from an identity (ID) theft conspiracy he ran in the metroplex from October 2009 to July 2013, was sentenced today, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Anthony Minor, 28, was sentenced by U.S. District Judge Sam A. Lindsay to 16 years in federal prison and ordered to pay $88,131 in restitution. A federal jury convicted Minor in September 2014 on one count of conspiracy to commit bank fraud, five counts of bank fraud, one count of using or trafficking in an unauthorized access device, and two counts of aggravated identification theft.
Minor is the last defendant convicted in the conspiracy to be sentenced. Other defendants pleaded guilty to the conspiracy charge. Minor’s girlfriend, Tilisha Morrison, 25, of Dallas, was sentenced to 48 months in federal prison and ordered to pay $88,131 in restitution. Katrina Thomas, 41, of Garland, Texas, was also sentenced to 48 months in federal prison, and she was ordered to pay $76,831 in restitution. Defendants Kario Butler, 29, of Mansfield, Texas; Cyrus Pritchett, 25, of Dallas; and Jamilah Karriem, 21, of Dallas and Desoto, Texas, were sentenced to time served. One defendant, Karen Mendoza, 44, most recently of Dallas, remains a fugitive.
Minor was the leader of the conspiracy. The government presented evidence at trial that he stole identities in a variety of ways, including purchasing them from a group of safe robbers and recruiting a Federal National Mortgage Association (Fannie Mae) employee, Katrina Thomas, to steal more than 1000 identities from her Fannie Mae workstation. Once the IDs were in hand, Minor and Morrison accessed the victims’ bank accounts and performed hundreds of account take-overs. As part of the conspiracy, they recruited their co-conspirators to walk into banks and withdraw cash.
Law enforcement caught Minor and arrested him at the W Hotel in Dallas. Law enforcement found numerous stolen and fake IDs, counterfeit checks, a laptop computer containing a template for the Texas Department of Public Safety Temporary Driver License, a printer, and a $900 bottle of Dom Pérignon champagne he had just ordered from room service using one of the stolen credit cards. He had rented the room using another’s identification.
Minor and the conspirators stole personal identifying information for true Bank of America and JP Morgan Chase account holders (the victim-customers) and used this information to fraudulently access funds contained in their bank accounts. They also created false identities using the stolen personal identifying information.
The U.S. Secret Service and the Federal Housing Finance Agency Office of Inspector General investigated the case.
Assistant U.S. Attorney P. J. Meitl and Special Assistant U.S. Attorney Christopher G. Poor prosecuted.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EDUARD TERCERO-LAGOS, age 25, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Sarah S. Vance sentenced TERCERO-LAGOS to time served and a $100 special assessment. TERCERO-LAGOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, TERCERO-LAGOS was found in the United States on December 8, 2014 after having been officially deported and removed on or about June 24, 2013.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant United States Attorney Spiro G. Latsis was in charge of the prosecution.
Henderson County Man Sentenced for Federal Income Tax ViolationsRead the Press Release
TYLER, Texas – A 65-year-old Athens, Texas, man has been sentenced for federal income tax violations, announced U.S. Attorney John M. Bales today.
Joseph A. Masso pleaded guilty on Dec. 12, 2014 to making and subscribing to a false tax return for the calendar year 2011 and was sentenced to 15 months in federal prison today by U.S. District Judge Leonard E. Davis. Masso was also ordered to pay restitution of more than $900,000 to the Internal Revenue Service.
According to information presented in Court, Masso formed a Texas limited liability company known as Lone Star Western & Casual LLC in December 2007. Lone Store operated retail clothing stores in Athens, Corsicana, and Waxahachie, Texas. For tax years 2009-2011, Masso falsely understated the gross receipts for these businesses on his IRS Form 1040 Schedule C by more than $5 million. As a result, he falsely understated his tax liability for the three tax years by approximately $950,000.
Masso has already agreed to pay a civil fraud penalty of more than $450,000. Also, Masso agreed in a related civil action to forfeit $800,000 to the United States. The funds were originally seized during the execution of federal seizure warrants.
This case was investigated by the Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Frank Coan.
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Hardin County Deputy Guilty of Lying to Federal AgentRead the Press Release
BEAUMONT, Texas – A 46-year-old Lumberton, Texas man pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jerry Lynn Roberts pleaded guilty to making a false statement to a federal agent today before U.S. Magistrate Judge Zachary J. Hawthorn.
According to information presented in court, on Mar. 6, 2013, federal agents executed a search warrant at Roberts’ residence in Lumberton, Texas, to search for evidence of child pornography that was mailed to a P.O. Box in Silsbee, Texas, under the name “Jerry Roberts.” Agents were able to determine that Jerry Roberts, who was employed by the Hardin County Sheriff’s Office as a detective, lived in Lumberton, Texas. Investigators were further able to determine that the child pornography was ordered using a credit card under Roberts’ control, using his e-mail address, and using his cell phone number. While at his residence, Roberts agreed to be interviewed by a U.S. Postal Inspector. Roberts told the federal agent that he did not order the videos of suspected child pornography, did not charge their purchase to his credit card and was unfamiliar with the website from which they were ordered. Although investigators did not locate child pornography at the residence, further investigation confirmed that Roberts did order and charge the suspected videos to his credit card, and, as such, his statements were false and were material to the investigation. Roberts was indicted by a federal grand jury on Mar. 5, 2015.
Roberts faces up to eight years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorneys Paul A. Hable and Christopher T. Tortorice.
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Hacker Sentenced to Two Years in Prison for Unleashing A Virus and Attacking Media OutletsRead the Press Release
CAMDEN, N.J. – A computer programmer was sentenced today to 24 months in prison for launching a virus that infected approximately 100,000 computers around the world and directed them to attack media outlets that republished stories that mentioned him, U.S. Attorney Paul J. Fishman announced.
In September 2010, a jury returned a guilty verdict against Bruce Raisley, 48, of Kansas City, Mo. – formerly of Monaca, Pa. – following a six-day trial before U.S. District Judge Robert B. Kugler. Raisley was convicted of the count charged in the Indictment on which he was tried: launching a malicious computer program designed to attack computers and Internet websites, causing damages. Judge Kugler also imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
Raisley formerly volunteered for Perverted Justice, an organization that worked with the Dateline NBC television show “To Catch a Predator” to identify and apprehend pedophiles. After a falling out with the group and its founder, Xavier Von Erck, Raisley became an outspoken critic of Perverted Justice and Von Erck.
Von Erck retaliated by posing online as an adult woman named “Holly” and initiating an Internet relationship with Raisley. Eventually, Raisley agreed to leave his wife for “Holly” and was photographed by a Perverted Justice volunteer waiting for “Holly” at the airport.
In September 2006, Radar Magazine published an article entitled “Strange Bedfellows,” and in July 2007, Rolling Stone Magazine published an article entitled, “To Catch a Predator: The New American Witch Hunt for Dangerous Pedophiles.” Both articles discussed the television show “To Catch a Predator” and, more specifically, the techniques employed by Perverted Justice and the show to ensnare pedophiles. Both articles discussed the episode between Raisley and Von Erck posing as “Holly.”The two articles proved popular, and were later posted on a number of websites beyond Radar and Rolling Stone, including a website operated by the Rick Ross Institute of New Jersey. As a result, Raisley devised a plan to remove the articles from the websites.
Specifically, Raisley developed a virus that would spread over the Internet and infect computers. When he deployed the virus, it infected approximately 100,000 computers across the world, creating what is known as a “botnet.” Expert witnesses explained that a botnet is a collection of victim computers that are remotely controlled to accomplish tasks such as sending out e-mail spam or, as in this case, attacking websites.
Raisley used the botnet to launch distributed denial of service attacks. Such attacks caused the 100,000 computers to repeatedly attempt to access any websites that posted the two articles in an effort to overwhelm the computers that hosted the websites and shut down the websites. The effect of denial of service attacks is akin to an “all circuits are busy” message – making it impossible for Internet users to access the content of the victim websites, including, of course, the two articles.Evidence admitted at trial demonstrated that Raisley targeted and attacked a number of websites, including those of Rolling Stone, Radar, Nettica, Corrupted Justice, and the Rick Ross Institute of New Jersey. In total, those websites suffered damages in excess of $100,000 in lost revenues and mitigation.
In addition to the prison term, Judge Kugler sentenced Raisley to three years of supervised release and ordered him to pay $90,386.34 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Erez Liebermann and Lee Vartan of the U.S. Attorney’s Office Economic Crimes Unit, Computer Hacking and Intellectual Property Section in Newark.
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Defense counsel: John Yauch, Esq., Assistant Federal Public Defender, Newark, N.J.Guatemalan National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ESWIN ESTUARDO MARTINEZ-REYES, age 42, a citizen of Guatemala, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Sarah S. Vance sentenced MARTINEZ-REYES to time served and a $100 special assessment. MARTINEZ-REYES will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, MARTINEZ-REYES was found in the United States on December 2, 2014, after having been officially deported and removed on or about June 7, 2013.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol in investigating this matter. Assistant United States Attorney Spiro G. Latsis was in charge of the prosecution.
Gilbane Building Company to Pay $1.1 Million to Resolve False Claims AllegationsRead the Press Release
Gilbane Building Company will pay the United States $1.1 million to resolve allegations that W.G. Mills Incorporated – a company with which Gilbane merged in November 2010 – violated the False Claims Act by creating a front company, Veterans Constructors Incorporated (VCI), in order to be awarded a Coast Guard contract that was designated for Service Disabled Veteran Owned Small Businesses (SDVOSBs), the Justice Department announced today. The Justice Department also announced that VCI has agreed to pay the United States $50,000 plus five annual contingency payments equal to one percent of VCI’s total annual revenues to resolve these same allegations.
“Those who seek to do business with the government must do so fairly and honestly,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will not tolerate contractors who seek to profit at the expense of our veterans and taxpayers.”
“Those who apply for federal contracts must be honest and forthright in their dealings, especially when seeking contracts set aside for service-disabled veterans,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “Working jointly with DOJ and our agency partners has allowed us to make substantial recoveries in these types of cases in recent months. Our office remains committed to pursuing these matters vigorously.”
To qualify as a SDVOSB, a company must be operated and managed by service-disabled veterans and must not be affiliated with a large company. The government alleged that W.G. Mills created VCI merely as a contracting vehicle and that VCI’s affiliation with W.G. Mills rendered it ineligible to be awarded set-aside contracts for SDVOSBs. The government further alleged that W.G. Mills performed the work that VCI was required to perform under the Coast Guard contract, and alleged that if the Coast Guard and the Small Business Administration (SBA) had known that VCI was nothing but a front company, the Coast Guard would not have awarded it the contract.
“Providing the government false information to gain access to set-aside contracts is unacceptable,” said Inspector General Peggy E. Gustafson of the SBA. “The OIG will aggressively investigate such misrepresentations to ensure only eligible businesses are awarded these contracts. I want to thank the U.S. Department of Justice for its dedication to pursuing justice in this case.”
“SBA’s contracting programs, including the Service-Disabled Veteran-Owned Small Business Program, provide eligible small businesses with the opportunity to grow and create jobs,” said General Counsel Melvin F. Williams Jr of the SBA. “SBA has no tolerance for fraud or abuse in any government contracting program and is committed to working with our federal partners to ensure the benefits of these programs flow only to the intended recipients.”
The settlement resolves allegations originally filed in a lawsuit by Michael Jeske and Samuel McIntosh. The investigation was a coordinated effort among the Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, and the SBA’s Office of Inspector General (OIG). The lawsuit was filed in the Middle District of Florida and is captioned United States ex rel. Michael Jeske and Samuel McIntosh v. Gilbane Building Company, W.G. Mills, Inc., and Veterans Constructors Inc., Case No. 8:11-cv-1205 (M.D. Fla.).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Gilbane Building Company to Pay $1.1 Million to Resolve False Claims AllegationsRead the Press Release
Tampa, FL – Gilbane Building Company will pay the United States $1.1 million to resolve allegations that W.G. Mills Incorporated – a company with which Gilbane merged in November 2010 – violated the False Claims Act by creating a front company, Veterans Constructors Incorporated (VCI), in order to be awarded a Coast Guard contract that was designated for Service Disabled Veteran Owned Small Businesses (SDVOSBs), the Justice Department announced today. The Justice Department also announced that VCI has agreed to pay the United States $50,000 plus five annual contingency payments equal to one percent of VCI’s total annual revenues to resolve these same allegations.
“Those who seek to do business with the government must do so fairly and honestly,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will not tolerate contractors who seek to profit at the expense of our veterans and taxpayers.”
“Those who apply for federal contracts must be honest and forthright in their dealings, especially when seeking contracts set aside for service-disabled veterans,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “Working jointly with DOJ and our agency partners has allowed us to make substantial recoveries in these types of cases in recent months. Our office remains committed to pursuing these matters vigorously.”
To qualify as a SDVOSB, a company must be operated and managed by service-disabled veterans and must not be affiliated with a large company. The government alleged that W.G. Mills created VCI merely as a contracting vehicle and that VCI’s affiliation with W.G. Mills rendered it ineligible to be awarded set-aside contracts for SDVOSBs. The government further alleged that W.G. Mills performed the work that VCI was required to perform under the Coast Guard contract, and alleged that if the Coast Guard and the Small Business Administration (SBA) had known that VCI was nothing but a front company, the Coast Guard would not have awarded it the contract.
“Providing the government false information to gain access to set-aside contracts is unacceptable,” said Inspector General Peggy E. Gustafson of the SBA. “The OIG will aggressively investigate such misrepresentations to ensure only eligible businesses are awarded these contracts. I want to thank the U.S. Department of Justice for its dedication to pursuing justice in this case.”
“SBA’s contracting programs, including the Service-Disabled Veteran-Owned Small Business Program, provide eligible small businesses with the opportunity to grow and create jobs,” said General Counsel Melvin F. Williams Jr of the SBA. “SBA has no tolerance for fraud or abuse in any government contracting program and is committed to working with our federal partners to ensure the benefits of these programs flow only to the intended recipients.”
This case was investigated jointly by Assistant U.S. Attorney Charles Harden of the United States Attorney’s Office for the Middle District of Florida; Trial Attorney David Finkelstein of the Commercial Litigation Branch of the Justice Department’s Civil Division; Adam Kaplan, Assistant Counsel to the Inspector General of the U.S. Small Business Administration; Trial Attorney Sabrina Daly of the Office of General Counsel for the U.S. Small Business Administration; and Kevin Kupperbusch, Supervisory Special Agent of the Atlanta office of the Inspector General of the U.S. Small Business Administration.
The settlement resolves allegations originally filed in a lawsuit by Michael Jeske and Samuel McIntosh. The investigation was a coordinated effort among the Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, and the SBA’s Office of Inspector General (OIG). The lawsuit was filed in the Middle District of Florida and is captioned United States ex rel. Michael Jeske and Samuel McIntosh v. Gilbane Building Company, W.G. Mills, Inc., and Veterans Constructors Inc., Case No. 8:11-cv-1205 (M.D. Fla.).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Ghanaian National Sentenced to 2 Years in Prison for Money LaunderingRead the Press Release
PITTSBURGH - A resident of Monessen, Pennsylvania, has been sentenced in federal court to 24 months incarceration and restitution in the amount of $55,029.10 on his conviction of money laundering, United States Attorney David J. Hickton announced today.
United States District Judge Gustave Diamond imposed the sentence on Steven Mensah Yawson, 37, and ordered that Yawson, a Ghanaian National, be immediately deported from the United States following completion of his sentence as a result of his conviction.
According to the information presented to the court, in 2012, Yawson conspired with others to steal identities which were later used to open credit cards and to purchase merchandise and gift cards in Western Pennsylvania. Yawson wired proceeds from the fraud to an individual in Accra, Ghana.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Western Pennsylvania Financial Crimes Task Force (WPFCTF) for conducting the investigation. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Georgia Businessman Pleads No Contest to Participating in Kickback Scheme and Guilty to Filing False Tax ReturnsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KENNETH JOHNSON, SR., age 52, of Stone Mountain, Georgia, pled nolo contendere (no contest) on March 16, 2015, to conspiring to pay kickbacks in a federal debris removal contract and guilty to two counts of filing false tax returns with the Internal Revenue Service.
According to court documents, the U.S. Army Corps of Engineers hired a Phillips and Jordan, a national construction firm, to manage the removal of storm debris from the City of New Orleans after Hurricane Katrina devastated the metro area. After they were awarded the contract, Phillips and Jordan hired Company A, a local solid waste management company to assist with the debris removal project. Shortly after securing the contract, Company A hired ANTHONY PENN, a local businessman, to manage the debris removal project for them. After some time on the job, PENN approached the owners of Company A and asked if they would consider hiring his brother-in-law, KENNETH JOHNSON, as a sub-tier subcontractor to work on the project. The owners of Company A accepted the recommendation and hired JOHNSON’s company, KCJ Enterprises, as a sub-tier subcontractor. Sometime thereafter, PENN asked JOHNSON to provide him with a cut of the revenue that KCJ Enterprises was receiving from Company A as a reward for steering the contract to him. JOHNSON agreed to the scheme and wired a total of $236,461.55 in kickback payments to PENN from July 12, 2006, to February 8, 2008.
As part of the investigation, it was determined that JOHNSON filed false tax returns with the IRS for tax years 2007 and 2008 in an effort to conceal the kickback scheme and to avoid paying taxes on his income from the debris removal work. As a result, JOHNSON avoided paying $113,771.00 in federal taxes.
At sentencing, JOHNSON faces a maximum term of imprisonment of five years on the conspiracy charge and a maximum term of imprisonment of three years on the tax charges. U.S. District Judge Stanwood R. Duval, Jr. set sentencing for July 15, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigations, the United States Department of Defense, and the Internal Revenue Service in investigating this matter. Assistant U.S. Attorneys Spiro G. Latsis and Theodore R. Carter, III are in charge of the prosecution.
Franklin County Resident Pleads Guilty to Heroin ConspiracyRead the Press Release
On March 17, 2015, George A. Mayo, 34, of West Frankfort, IL, pled guilty to a one-count indictment charging conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that Mayo was routinely obtaining heroin from co-defendant Frank R. Johnson, a/k/a "Mo." Mayo would then redistribute some of the heroin and keep some of the heroin for his own use. When Mayo was arrested in January 2014, he was found in possession of heroin.
The heroin offense carries a penalty of up to 20 years in prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000. Mayo is currently being held without bond, pending a June 10, 2015, sentencing hearing. Co-defendant Johnson was previously sentenced to 108 months in federal prison for his role in the heroin conspiracy.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and Drug Enforcement Administration. The Jackson County Sheriff’s Office, West Frankfort Police Department, Franklin County Sheriff’s Office, and Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Four sentenced on drug trafficking chargesRead the Press Release
ELKINS, WEST VIRGINIA – Four individuals were sentenced today on drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced.
Jeremiah Dustin Dean, 34, of Moorefield, West Virginia, was sentenced today to 37 months in prison for oxycodone trafficking in Grant County, West Virginia. He pled guilty in November 2014 to one count of “Possession with Intent to Distribute Oxycodone” following an investigation by the West Virginia State Police and the Potomac Highlands Drug and Violent Crime Task Force.
Dennis Lynn Smith, 56, of Upper Tract, West Virginia was sentenced today to five years of probation for his role in manufacturing methamphetamine in Pendleton County, West Virginia. He pled guilty in March 2014 to one count of “Maintaining Drug-Involved Premise” following an investigation by the West Virginia State Police. Smith was also ordered to pay restitution in the amount of $9,990.50.
Terry J. Sutter, 51, of Mill Creek, West Virginia, was sentenced today to five years of probation for marijuana trafficking in Randolph County, West Virginia in June 2014. He pled guilty in November 2014 to one count of “Manufacture and Possess with Intent to Distribute and Distribute Marijuana” following an investigation by the National Forest Service and the Randolph County Sheriff’s Office.
Arnold Lee Mayle, 72, of Canton, Ohio, was sentenced today to two years of probation for distributing clonazepam, an anti-anxiety medication, in Randolph County, West Virginia. He pled guilty in September 2014 to one count of “Aiding and Abetting in the Distribution of Clonazepam” following an investigation by the United States Forest Service.
Assistant U.S. Attorney Andrew Cogar prosecuted Smith and Assistant U.S. Attorney Stephen Warner prosecuted the remaining defendants on behalf of the government.
Chief U.S. District Judge John Preston Bailey presided.
Four Former Georgia Correctional Officers Sentenced for Offenses Related to Assaults of Inmates and Ensuing Cover-UpRead the Press Release
The Justice Department announced that Darren Douglass-Griffin, Kerry Bolden, Emmett McKenzie and Kadarius Thomas—four former members of the Correctional Emergency Response Team (CERT) at Macon State Prison (MSP) in Oglethorpe, Georgia—were sentenced today for federal offenses related to the beating of MSP inmates in 2010 and the cover-up that followed.
U.S. District Judge Marc T. Treadwell sentenced Douglass-Griffin to serve 12 months in prison for conspiracy against rights and for writing a false report. Bolden was sentenced to serve nine months in prison for conspiracy against rights and conspiracy to obstruct justice. McKenzie received a sentence of six months in prison for conspiracy against rights. Thomas was sentenced to serve six months in prison for writing a false report regarding the beating of an inmate.
In June 2014, a federal jury trial in United States v. Hinton, et al., resulted in the conviction of former CERT Sergeant Christopher Hall and senior CERT officers Ronald Lach and Delton Rushin. Evidence introduced at trial and in court documents filed in connection with the guilty pleas of Douglass-Griffin, Bolden, McKenzie and Thomas showed that CERT officers conspired to assault handcuffed inmates as punishment for past misconduct. CERT officers beat multiple inmates, two of whom suffered serious injuries. One inmate, Terrance Dean, suffered a traumatic brain injury during an assault by CERT officers. Evidence also showed that CERT officers conspired to cover up their unlawful practice, and that officers turned in false reports and provided misleading statements to investigators.
On Dec. 4, 2014, U.S. District Judge Marc T. Treadwell sentenced the defendants who were convicted at trial to the following terms of incarceration: Lach, 90 months; Hall, 72 months; and Rushin, 60 months.
Former CERT member Willie Redden is the last defendant to be sentenced in connection with these cases. A sentencing date has not yet been set for Redden.
“Eight former corrections officials from Macon State Prison now have been sentenced for criminal conduct that ranged from beating inmates to obstructing our investigation,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Department of Justice will continue to vigorously prosecute corrections officers who betray the public trust, assault people in their custody, and otherwise use their power to violate federal law.”
“While our corrections officials have a difficult yet important job, we must insist that they follow the law and not use the authority that comes with a prison guard’s uniform to assault the very people they are charged with supervising,” said U.S. Attorney Michael J. Moore of the Middle District of Georgia. “In this case, it wasn’t just inmates who were victims, it was also the public who had entrusted these officials with maintaining order while respecting and following the law.”
These cases were investigated by the Macon Resident Agency of the FBI, with the support of the Georgia Bureau of Investigation. The cases were prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Tona Boyd for the Civil Rights Division, with the assistance of the U.S. Attorney’s Office in Macon.
Four Former Georgia Correctional Officers Sentenced for Offenses Related to Assaults of Inmates and Ensuing Cover-UpRead the Press Release
WASHINGTON – The Justice Department announced that Darren Douglass-Griffin, Kerry Bolden, Emmett McKenzie and Kadarius Thomas—four former members of the Correctional Emergency Response Team (CERT) at Macon State Prison (MSP) in Oglethorpe, Georgia—were sentenced today for federal offenses related to the beating of MSP inmates in 2010 and the cover-up that followed.
U.S. District Judge Marc T. Treadwell sentenced Douglass-Griffin to serve 12 months in prison for conspiracy against rights and for writing a false report. Bolden was sentenced to serve nine months in prison for conspiracy against rights and conspiracy to obstruct justice. McKenzie received a sentence of six months in prison for conspiracy against rights. Thomas was sentenced to serve six months in prison for writing a false report regarding the beating of an inmate.
In June 2014, a federal jury trial in United States v. Hinton, et al., resulted in the conviction of former CERT Sergeant Christopher Hall and senior CERT officers Ronald Lach and Delton Rushin. Evidence introduced at trial and in court documents filed in connection with the guilty pleas of Douglass-Griffin, Bolden, McKenzie and Thomas showed that CERT officers conspired to assault handcuffed inmates as punishment for past misconduct. CERT officers beat multiple inmates, two of whom suffered serious injuries. One inmate, Terrance Dean, suffered a traumatic brain injury during an assault by CERT officers. Evidence also showed that CERT officers conspired to cover up their unlawful practice, and that officers turned in false reports and provided misleading statements to investigators.
On Dec. 4, 2014, U.S. District Judge Marc T. Treadwell sentenced the defendants who were convicted at trial to the following terms of incarceration: Lach, 90 months; Hall, 72 months; and Rushin, 60 months.
Former CERT member Willie Redden is the last defendant to be sentenced in connection with these cases. A sentencing date has not yet been set for Redden.
“Eight former corrections officials from Macon State Prison now have been sentenced for criminal conduct that ranged from beating inmates to obstructing our investigation,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Department of Justice will continue to vigorously prosecute corrections officers who betray the public trust, assault people in their custody, and otherwise use their power to violate federal law.”
“While our corrections officials have a difficult yet important job, we must insist that they follow the law and not use the authority that comes with a prison guard’s uniform to assault the very people they are charged with supervising,” said U.S. Attorney Michael J. Moore of the Middle District of Georgia. “In this case, it wasn’t just inmates who were victims, it was also the public who had entrusted these officials with maintaining order while respecting and following the law.”
These cases were investigated by the Macon Resident Agency of the FBI, with the support of the Georgia Bureau of Investigation. The cases were prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Tona Boyd for the Civil Rights Division, with the assistance of the U.S. Attorney’s Office in Macon.
If you have questions, please call the Office of Public Affairs at 202-514-2007.
Fort Smith Man Arraigned for Sex Trafficking of Two Minor FemalesRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Odis Charles Grant, Jr. age 29 of Fort Smith, appeared today in Magistrate Court before United States Magistrate Judge Mark E. Ford for arraignment on two counts of knowingly transporting minors with the intent that the individuals engage in prostitution.
U.S. Attorney Eldridge commented, “Human trafficking and child sex trafficking are horrendous, despicable crimes. We will vigorously enforce federal criminal laws against human trafficking, including against those who seek out, promote, and use minors for prostitution. We will do so across the Western District of Arkansas.”
On November 23, 2014, two juvenile residents of Fort Smith Arkansas were transported from the Western District of Arkansas to Texas by Grant with the intent that the two minor females engage in prostitution in the Houston, Texas area. In doing so, Grant utilized the internet service of backpage.com to promote prostitution of the minors. The statutory penalty for sex trafficking is not less than ten years and not more than life, not more than $250,000 fine, or both.
This case is being investigated by the Federal Bureau of Investigation and the Fort Smith Police Department. Assistant United States Attorney Aaron Jennen and Assistant United States Attorney Ashleigh Buckley are prosecuting the case for the United States.
The charges in the indictment are only allegations. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Former Shelbyville Bank Vice President Sentenced for Misappropriating FundsRead the Press Release
LEXINGTON — A former vice-president of a Shelbyville bank has been sentenced to 12 months in prison, with an additional six months of home-incarceration, for misappropriating hundreds of thousands of dollars of bank funds.
On Tuesday, U.S. District Judge Gregory F. Van Tatenhove sentenced Roy T. Edwards to his prison term and also ordered him to pay $308,482 in restitution.
According to court documents, from March 2005 through November 2006, Edwards fraudulently authorized hundreds of thousands of dollars in loans to applicants who were not qualified based on their credit histories and the bank suffered financial losses based on the loans. More specifically, Edwards knowingly approved loan applications that contained false information regarding applicants’ income, employment, and assets.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Patrick T. Collins, Federal Deposit Insurance Corporation (FDIC), Office of Inspector General, jointly announced the sentence.
The investigation was conducted by the FDIC. Assistant U.S. Attorney Andrew Sparks prosecuted the case on behalf of the federal government.
Former Parochial Vicar Indicted on Child Exploitation ChargesRead the Press Release
PHILADELPHIA – Mark Haynes, 56, of West Chester, PA, was indicted on March 12, 2015, on charges of child exploitation, announced United States Attorney Zane David Memeger. Haynes, a former parochial Vicar, is charged with using the Internet to entice a minor to engage in sexual conduct, transfer of obscene material to a minor, distribution of child pornography, possession of child pornography, and destruction or concealment of evidence.
According to court documents, around 2010, Haynes posed as a 16-year old girl named “Katie” on a teen dating website. As “Katie,” Haynes would meet minor girls online and allegedly request that they take and send sexually explicit pictures. Haynes is also charged with distributing other images and videos of children being sexually assaulted over the Internet in 2014, again posing as “Katie.”
If convicted of all charges, Haynes faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life, possible fines, and at least five years up to a lifetime of supervised release.
The case was investigated by the FBI in conjunction with the Chester County Criminal Investigative Division. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
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 United States 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.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former NMSU Student Pleads Guilty to Hindering Investigation into Internet Threats to Shoot up the UniversityRead the Press Release
ALBUQUERQUE – Zachary Milton Hess, 19, of Las Cruces, N.M., pleaded guilty this afternoon in federal court to a misdemeanor information charging him with being an accessary after the fact to the interstate transmission of an extortionate communication. Under the terms of his plea agreement, Hess will be sentenced to five years of probation and ordered to pay $77,934.00 in restitution.
Hess was arrested on Aug. 25, 2014, on a criminal complaint charging him with sending in interstate commerce a threat to shoot up his college campus. According to the criminal complaint, on May 27, 2014, an individual anonymously threatened to “shoot [his] college campus up in 3 days” and identified his college as New Mexico State University (NMSU) while “chatting” on an Internet website. The threat subsequently was posted on to NMSU’s Facebook page and was passed onto law enforcement, including the FBI. The FBI’s investigation revealed that the IP Address from which the threat was posted was subscribed to Hess’s residence. An examination of Hess’s computer revealed that it had been used to visit the website on the same date and time on which the threat was posted.
The criminal complaint states that NMSU expended significant resources in responding to the threat. Among other things, NMSU officials informed approximately 18,774 students, facility, staff and private citizens about the anonymous threat; advised students, faculty and staff to depart the campus; and shut down its new student registration process. NMSU lost approximately 1,000 staff hours in responding to the threat.
During today’s proceedings, Hess pled guilty to being an accessory after the fact to the interstate transmission of an extortionate communication. In his plea agreement, Hess admitted that on May 29, 2014, he knew that communications had been sent over the Internet making threats to shoot up NMSU and that he assisted in hindering the investigation into the threats.
Hess remains on conditions of release pending his sentencing hearing, which has yet to be schedule. The plea agreement requires that Hess be sentenced to five years of probation and to pay $77,934.00 in restitution to cover the costs of NMSU’s response to the threats.
This case was investigated by the Las Cruces office of the FBI and the NMSU Police Department, and is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office.
Former Millersburg Bus Company Executive and Corporation Sentenced in $1.4 Million School District Fraud CaseRead the Press Release
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that a former Millersburg, Pennsylvania-based bus company executive and his corporation were sentenced today in United States District Court in Harrisburg on charges they defrauded two area school districts out of more than $1.4 million.
Todd M. Harris, age 49, a resident of Dalmatia, Pennsylvania and the former Vice President and 2 percent owner of the Harris Transportation Corporation (HTC), was sentenced by Senior U.S. District Court Judge Sylvia Rambo to 24 months incarceration, and 3 years Supervised Release. Judge Rambo also entered an order of forfeiture of $1,464,613 against Todd Harris and the Harris Transportation Corporation and ordered both defendants to pay restitution in the same amount.
Todd Harris and HTC were charged in November 2014 with mail fraud. The Information alleged the two defendants defrauded the Halifax Area and the Upper Dauphin Area School Districts out of approximately $1.4 million between 2008 and 2011. The Pennsylvania Department of Education was also alleged to have been a victim of the scam.
According to U.S. Attorney Peter Smith, HTC, a small family owned business provided student bus and van transportation services for the Halifax and Upper Dauphin Area school districts for many years. The compensation HTC received for its services was based upon a formula established by the Pennsylvania Department of Education that included the mileage incurred with and without students, the age and size of the bus or van, and the number of students transported. The Pennsylvania Department of Education reimburses Pennsylvania school districts for a significant portion of their annual student transportation expense.
According to evidence summarized by Assistant United States Attorney Kim Douglas Daniel, HTC was paid approximately $1.3 million by Halifax and approximately $3.6 million by Upper Dauphin for the 2008-2011 school years. The Information alleged that between September 2008 and June 2011 Todd Harris routinely submitted inflated mileage claims to the two school districts, resulting in overpayments to HTC by Halifax of $566,556 and by Upper Dauphin of $898,057. The Pennsylvania Department of Education also was a victim of the scheme because the Department eventually reimbursed Halifax for approximately 82 percent, and Upper Dauphin approximately 84 percent, of their transportation expenses for those years.
The fraud was first discovered in the summer of 2011 as the result of an audit conducted by Upper Dauphin. Subsequent audits by Halifax and the Pennsylvania Auditor General’s Office revealed that Harris’ mileage claims were grossly inflated, typically by 10-30 percent. Interviews of former HTC drivers confirmed Harris’ mileage submissions were false and that Todd Harris occasionally instructed them to take much longer routes than necessary. The combined losses sustained by both school districts were $1,464,613. Upper Dauphin and Halifax terminated their contracts with HTC in early 2012 and the company ceased doing business shortly thereafter.
Todd Harris and HTC entered their guilty pleas pursuant to plea agreements with the government in November 2014. The agreements require Todd Harris to cooperate with the government, obligate both defendants to forfeit $1,464,613, and to make restitution to the two school districts as ordered by the court. Pursuant to HTC’s plea agreement, the company tendered an up-front, $425,000 restitution payment at the time the corporation entered its guilty plea. HTC previously refunded $337,715 to Upper Dauphin in 2011, bringing the total restitution paid by the corporation to date to $762,715.
The matter was investigated by the U.S. Department of Education Inspector General’s Office in Philadelphia, in conjunction with the Dauphin County District Attorney’s Office Criminal Investigation Division and the PA Auditor General’s Office, Office of General Counsel.
“I am proud of the work of OIG Special Agents and our investigative partners in holding Mr. Harris accountable for his criminal actions,” said Chris Cooper, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Mid-Atlantic Office. "We will continue to aggressively pursue those who seek to enrich themselves at the expense of our nation’s students. America’s students and taxpayers deserve nothing less.”
The cases were prosecuted by Assistant United States Attorney Kim Douglas Daniel.
# # #Former Governor Sentenced to 30 Months in Prison for Illegal Activity in Two Congressional CampaignsRead the Press Release
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Former governor JOHN G. ROWLAND was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by three years of supervised release, for attempting to conceal the extent of his involvement in two federal election campaigns. ROWLAND also was ordered to pay a $35,000 fine. ROWLAND, 57, of Middlebury, served as governor of Connecticut from 1995 to 2004, and in the U.S. House of Representatives from 1985 to 1991.
“It is disheartening that an individual who once held two of our country’s highest elected offices, and who also served time in prison for a previous federal conviction, chose to deceive voters and violate laws that were established to ensure fair and open elections,” stated First Assistant U.S. Attorney Michael J. Gustafson. “Hopefully, today’s sentence will deter both this defendant from future criminal behavior and all who may consider ignoring campaign financing laws. I want to thank the U.S. Postal Inspectors who diligently investigated this scheme, as well as our trial team who have expertly and fairly prosecuted this case.”
“Postal Inspectors dedicated two years to this complex fraud investigation” stated Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service. “John Rowland’s conviction and today’s sentence validate that the undertaking was well worth the effort. Those who plot in secret to violate the public trust are not immune to the law and, as demonstrated in this case, will be prosecuted and punished to the fullest extent for unscrupulous behavior.”
According to the evidence introduced during his trial, in approximately October 2009, ROWLAND devised a scheme to work for the campaign of a candidate seeking election to the U.S. House of Representatives from Connecticut’s Fifth Congressional District during the 2009 and 2010 election cycle, and to conceal from the Federal Election Commission (“FEC”) and the public that he would be paid to perform that work. To make the illegal arrangement appear legitimate, ROWLAND drafted a sham consulting contract pursuant to which he would purportedly perform work for a separate corporate entity owned by the candidate.
During the 2011 and 2012 election cycle, another candidate, Lisa Wilson-Foley, was seeking election to the U.S. House of Representatives from Connecticut’s Fifth Congressional District. Wilson-Foley’s husband, Brian Foley, owns a Connecticut nursing home company and a number of other related companies, including a real estate company. ROWLAND conspired with Wilson-Foley, Foley and others to conceal from the FEC and the public that ROWLAND was paid money in exchange for services he provided to Wilson-Foley’s campaign.
As part of the scheme, ROWLAND proposed to Wilson-Foley and Foley that he be hired to work on the campaign. In order to retain ROWLAND’s services for the campaign while reducing the risk that his paid campaign role would be disclosed to the public, ROWLAND, Wilson-Foley and Foley agreed that ROWLAND would be paid by Foley to work on the campaign. ROWLAND, Foley and others then created and executed a fictitious contract outlining an agreement purportedly for consulting services between ROWLAND and the law offices of an attorney who worked for Foley’s nursing home company. Foley made regular payments to ROWLAND for his work on behalf of Wilson-Foley’s campaign and routed those payments from his real estate company through the law offices of the attorney. ROWLAND provided nominal services to Foley’s nursing home company in order to create a “cover” that he was being paid for those nominal services when, in fact, he was being paid in exchange for his work on behalf of Wilson-Foley’s campaign.
Between September 2011 and April 2012, ROWLAND was paid approximately $35,000 for services rendered to Wilson-Foley’s campaign. The payments originated with Foley and constituted campaign contributions, but were not reported to the FEC in violation of federal campaign finance laws.
On September 19, 2014, ROWLAND was found guilty of two counts of falsification of records in a federal investigation, one count of conspiracy, two counts of causing false statements to be made to the FEC, and two counts of causing illegal campaign contributions.In December 2004, ROWLAND pleaded guilty to conspiracy to commit honest services mail fraud and tax fraud. On March 18, 2005, he was sentenced to 12 months and one day of imprisonment and four months of home confinement.
On March 31, 2014, Foley and Wilson-Foley each pleaded guilty to conspiring to make illegal campaign contributions. On January 9, 2015, Foley, who received credit for cooperating with the investigation, was sentenced to three months in community confinement (halfway house). Wilson-Foley awaits sentencing.
This matter was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorneys Liam Brennan and Christopher Mattei.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Director of Domestic Violence Shelter Sentenced for $400,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former director of a shelter for victims of domestic violence in Marshall, Mo., was sentenced in federal court today for embezzling more than $100,000 from the shelter and defrauding the state on federal grants earmarked for victims of crime.
Deborah L. Wallace, 51, of Marshall, was sentenced by U.S. District Judge Gary A. Fenner to two years and six months in federal prison without parole. The court also ordered Wallace to pay $433,688 in restitution (including $115,219 in restitution to the Lighthouse Shelter and $268,468 in restitution to the Missouri Department of Public Safety).
On June 26, 2014, Wallace pleaded guilty to one count of stealing government property and one count of making false claims for reimbursement under a federal grant.
Wallace was the executive director of the Lighthouse Shelter, Inc., from April 1999 to April 2013. Wallace admitted that she embezzled money from Lighthouse, including money obtained from grants funded by the U.S. Department of Justice. Over a five-year period from 2008 through 2013, Wallace used Lighthouse credit cards to pay personal expenses. Wallace also made unauthorized payments on personal credit cards and her personal cell phone from the Lighthouse bank account.
In her position as executive director, Wallace certified that the grant applications submitted to the Missouri Department of Public Safety for federal grants – the Victims of Crime Act and the State Services for Victims Fund – were true and accurate statements in support of the grant applications. Wallace also certified that the monthly invoices made in support of disbursement of the grant monies were true and accurate. Wallace admitted that she submitted fraudulent monthly invoices. For example, she falsely claimed that employees who actually performed other duties were working in positions funded under the grants.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the U.S. Department of Justice Office of the Inspector General.
Former Coast Guard Member Sentenced to 50 Years for Producing Child Pornography of Young GirlsRead the Press Release
GRAND RAPIDS, MICHIGAN – Eric Devin Masters, 28, of St. Ignace, Michigan, received a 50-year sentence in federal prison for producing child pornography of three young girls, ages 18 months to 12 years old. The judge ordered him to pay $76,640 in restitution for counseling costs to the youngest victim, whom Masters brutally sexually assaulted. Masters pled guilty in federal court in September 2014 to three counts of producing numerous child pornography videos and photographs between May 2012 and August 2013.
Over the course of five years, Masters molested five young girls in five West Michigan counties: Kent, Ionia, Muskegon, Grand Traverse, and Mackinac Counties. Three of the victims’ cases were resolved in this federal case, and the other two were addressed in separate state court charges. Starting in June 2011, when Masters was on active duty with the Coast Guard, Masters began making what he described in emails to others as “sleep rape” videos of him molesting young girls as they slept. The following year, in May 2012, Masters violently assaulted an 18-month-old girl in a Grand Rapids hotel room, recorded the abuse on video, and emailed the videos out to people in exchange for other child pornography. State charges for the sexual assault are pending in Kent County. Throughout that year and the next, Masters continued to make “sleep rape” videos of young girls, and he also took hidden video of one child exiting the shower, changing clothes in a bedroom, and using the bathroom. Masters was convicted in Ionia County in January 2014 of Criminal Sexual Conduct (Second Degree) for molesting a 17-year-old. While on bond for that offense and awaiting sentencing, he “friended” a 13-year-old in Muskegon County through a fake Facebook account and had sex with her. He pled no contest to Criminal Sexual Conduct (Third Degree) for that offense. His path of destruction came to an end in February 2014 when he was detained on the Ionia County conviction, and he has been detained since that time. The federal case arose out of two separate investigations by the Nashville Police Department in Tennessee and the FBI in Birmingham, Alabama, where child pornographic videos that Masters created were found on computers of other child pornography collectors. Masters admitted that he sent the explicit material to other people in the hopes that they would send him their own child pornography in return.
At the sentencing hearing today, the mothers of two of the victims in the federal case spoke. They emotionally described the pain Masters put them and their children through, as well as the fear and shame the children will live with for the rest of their lives. Masters then addressed the court and said he was “feeding an addiction” that he could not stop. In imposing the 50-year sentence, U.S. District Judge Robert Holmes Bell stated that this was one of the worst scenarios he could think of and one of the worst cases he had ever seen. Judge Bell told Masters, “I am stunned by your lack of understanding of yourself and why you did what you did.” He expressed concern for the lifetime impact on the children and the fact that nothing can stop the images and videos from being distributed around the world through the internet.
In announcing the sentence, U.S. Attorney Patrick Miles stated, “Thankfully state and federal agencies throughout the nation are working hard and collaborating to address the scourge of child pornography. Through such collaboration they found these horrific child pornography materials in Alabama and Tennessee, identified the perpetrator here in West Michigan, and helped bring Eric Masters to justice in federal court.”
FBIA Special Agent in Charge, Paul M. Abbate stated, “Today’s sentencing clearly reflects the FBI’s relentless efforts to combat child exploitation in all forms. Defendant Masters’ capture and ultimate sentencing should send the strongest of messages to child predators that the FBI and our law enforcement partners will bring them to justice and hold them accountable under the law.”
The federal investigation was conducted by the FBI and the West Michigan Based Child Exploitation Task Force (WEBCHEX), a collaborative of state and local law enforcement in West Michigan. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
END
Former Assistant Branch Manager of Credit Union Pleads Guilty to EmbezzlementRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Male Yahaira Rivera (35, Orlando) today pleaded guilty to embezzlement from a federally insured credit union. She faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to court documents, Rivera was an Assistant Branch Manager of Fairwinds Credit Union. Over a period of about 10 months, she stole $258,000 in cash from the credit union. Funds were taken on 16 separate occasions in amounts ranging from $2,000 to $40,000. Each of the thefts involved cash that was supposed to be deposited into an ATM machine or cash that was removed from an ATM machine. Rivera used more than $44,000 as a partial payment for a Porsche.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Former Assemblyman and Perth Amboy, New Jersey Mayor Joseph Vas and Aide Melvin Ramos Sentenced to Prison for Mail and Federal Election FraudRead the Press Release
NEWARK, N.J. – Former Assemblyman and Perth Amboy Mayor Joseph Vas and his longtime aide Melvin Ramos were sentenced today to 78 and 37 months in prison, respectively, for corruptly misusing Vas’ position as mayor to steal affordable housing funds and for committing federal election fraud, U.S. Attorney Paul J. Fishman announced.
The defendants were convicted following a three-week trial before U.S. District Judge Susan D. Wigenton, who also imposed the sentences today in Newark federal court. Vas, 56, and Ramos, 55, both of Perth Amboy, were each convicted of two counts of mail fraud for misappropriating $360,000 in affordable housing funds. The jury also convicted Vas of one count of fraud and misapplication of funds in connection with unlawfully misapplying $90,000 in low income housing funds; one count of making false statements to FBI agents; and one count of accepting contributions to a federal candidate in the names of others. The jury also convicted Ramos of one count of making contributions to a federal candidate in the names of others and two counts of making false statements to the Federal Election Commission (“FEC”). The jury acquitted Vas and Ramos of four counts of mail fraud.
According to documents filed in this case and statements made in court:
Vas and Ramos misused Vas’ position and authority as mayor to assist Vas in selling a 12-unit Perth Amboy apartment building on DeKalb Avenue in Perth Amboy. As part of the scheme, Vas bought the building in December 2005 for approximately $660,000 – well under the $955,000 property appraisal Vas had obtained. Five months later, Vas “flipped” the property to a contractor for approximately $950,000. To induce the contractor to buy the property, Vas and Ramos assured him that a significant amount of affordable housing funding would be available to offset the cost of renovating the building. After selling the property, Vas directed city employees to submit a resolution to the Perth Amboy City Council to authorize $360,000 in funds for the rehabilitation of the property. City Council members voted to approve the resolution on June 14, 2006. Though Vas was present at the council meeting, he did not disclose any facts regarding the profit he received from the sale.
Vas also misused his authority to direct city employees to make a $90,000 advance payment, even though state officials had not yet approved this project as state law required. Vas failed to completely recuse himself from this matter. Vas and Ramos also concealed material aspects of the arrangement and used mail and a courier service in furtherance of the scheme.
In an interview by FBI agents in December 2008, after the investigation began, Vas falsely stated that he had never spoken with the contractor about the availability of city funds for the property, and that he never directed city officials to sign off on the $90,000 disbursement.
Ultimately, Vas used approximately $75,000 of his approximately $290,000 in profits from the sale of the apartment building to fund his 2006 congressional primary campaign for the Democratic nomination in New Jersey’s 13th District.
Ramos was convicted for his participation in a scheme to use conduit donors to funnel contributions to that same campaign. Ramos, who was Vas’ campaign treasurer, used four straw donors to contribute between $2,000 and $2,100 each to the campaign. Ramos funded the straw donations by giving cash to each donor, who then gave Ramos a check made out to the campaign fund. He then filed false and fraudulent reports with the FEC regarding the contributions.
The jury also convicted Vas of accepting campaign contributions which he knew to have been obtained in violation of federal election law.
U.S. Attorney Fishman stated: “The lengthy prison sentence the defendants will serve is an appropriate punishment for abusing the power of Vas’ office.”
In addition to prison terms, Judge Wigenton sentenced Vas and Ramos to three years of supervised release and ordered them to pay $90,000 in restitution to Perth Amboy. Vas was also ordered to pay a $73,200 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward, for the investigation leading to today’s sentences.
The government is represented by Assistant U.S. Attorneys Brian R. Howe, Deputy Chief of the U.S. Attorney’s Office Special Prosecutions Division, and Jenny R. Kramer, Acting Deputy Chief of the Office’s General Crimes Unit.
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Defense counsel:
Vas: Alan L. Zegas and Edward J. Byrne, Esq., Chatham, N.J.
Ramos: Jerome A. Ballarrotto, Esq., Trenton, N.J.Eight Taken into Custody for Drug ViolationsRead the Press Release
CONCORD, NEW HAMPSHIRE – Eight individuals were arrested by federal, state and local authorities following a long-term investigation into the trafficking of heroin and cocaine in the Keene, New Hampshire area, announced United States Attorney John P. Kacavas. Those arrested include:
(1) Ross Gould, age 28, of 61 B Prospect Street, Richmond New Hampshire, was arrested for unlawful possession of heroin, in violation of Title 21, United States Code, 841(a)(1);
(2) Jamie Hilow, age 28, of 15 High Street, Winchester, New Hampshire, was arrested for unlawful distribution of heroin, in violation of Title 21, United States Code, 841(a)(1);
(3) Jaclyn Hilow, age 29, of 15 High Street, Winchester, New Hampshire, was arrested for unlawful distribution of heroin, in violation of Title 21, United States Code, 841(a)(1);
(4) Jason Daigle, age 38, 79 Prospect Hill Road, Richmond, New Hampshire, was arrested for engaging in a conspiracy to distribute heroin, in violation of Title 21, United States Code, Sections 846 and 841(a)(1);and
(5) Brandon Rivers, age 29, 49-51 Howard Street, Keene, New Hampshire, was arrested for engaging in a conspiracy to distribute heroin, in violation of Title 21, United States Code, Sections 846 and 841(a)(1)
(6) Jonathan Cruz-Marte, age 32, of 52 Howard Street, Lawrence, Massachusetts, was arrested for engaging in a conspiracy to distribute heroin, in violation of Title 21, United States Code, Sections 846 and 841(a)(1);
(7) Felix Portes, age 56, of 227 Bailey Street, Lawrence, Massachusetts, was arrested for engaging in a conspiracy to distribute heroin, in violation of Title 21, United States Code, Sections 846 and 841(a)(1);
(8) Pedro Pena, age 37, 125 Chestnut Street, Lawrence, Massachusetts, was arrested for distribution of heroin;
In addition to the arrest of these individuals, fourteen firearms and significant quantities of heroin and cocaine were seized during the execution of a search warrant at Gould’s residence.
The investigation was conducted by the (1) United States Attorney’s Office for the District of New Hampshire; (2) Immigration and Customs Enforcement/Homeland Security Investigations; (3) New Hampshire Attorney General’s Drug Task Force; (4) Bureau of Alcohol, Tobacco, Firearms and Explosives; (5) New Hampshire State Police; (6) Keene, New Hampshire Police Department; (7) Richmond, New Hampshire Police Department; and (8) Salem, New Hampshire Police Department. In addition, members of the Drug Enforcement Administration and the United States Marshals Service assisted the above-referenced agencies in making the arrests.
Eagle Butte Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man was convicted of Assault with a Dangerous Weapon, and was sentenced on March 9, 2015, by U.S. District Judge Roberto A. Lange.
Randall Bear Eagle, age 30, was sentenced to 24 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bear Eagle was indicted by a federal grand jury on October 15, 2014, for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. He pled guilty to Assault with a Dangerous Weapon on December 16, 2014.
The conviction arose from a July 5, 2014, incident in which Bear Eagle got into a verbal argument with the victim, his half-brother. The argument escalated into a physical altercation, and Bear Eagle picked up a tire iron and assaulted the victim, hitting him in the head.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Bear Eagle was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Duneweg Man Sentenced to 23 Years for Sexually Exploiting 4-Year-Old ChildRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Duneweg, Mo., man was sentenced in federal court today for sexually exploiting a 4-year-old child to produce child pornography.
Tony Lasiter, 33, of Duneweg, was sentenced by U.S. District Judge M. Douglas Harpool to 23 years and 10 months in federal prison without parole, followed by a life term of supervised release.
On Sept. 4, 2014, Lasiter pleaded guilty to the sexual exploitation of a child. According to court documents, Lasiter used his cell phone to take nude photos of a 4-year-old child (identified in the indictment as “Jane Doe”) while she was in the bathtub and while she was being molested. Lasiter downloaded the photos to his laptop computer then transferred the files to an SD card. The files were discovered when the child victim’s father noticed the SD card in the computer and opened the files, according to court documents. The photos were taken in August 2013.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force, the Duneweg, Mo., Police Department, the Sarcoxie, Mo., Police Department and the Jasper County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Drage Convicted of Tax Charges Following Three-Week Trial in Federal CourtRead the Press Release
SALT LAKE CITY - Nathan Whitney Drage, age 56, a Salt Lake City attorney, was convicted of one count of conspiracy to impair and impede the IRS and three counts of willful failure to file a tax return, following a three-week trial in federal court in Salt Lake City. A jury returned the verdict late Tuesday night.
The case was investigated by special agents of IRS Investigation. The SEC and the Financial Industry Regulatory Authority (FINRA) also contributed to the case.
Evidence at trial showed that Drage and other business partners worked together to acquire vast amounts of stock and then exercise control of the stock through nominees to hide their control. Drage and others then caused thousands of shares of stock to be sold generating millions of dollars. Drage and other business partners took steps to hide and conceal from the IRS who owned the stock, who should report the stock sale, who got the money from the stock sale, and whether the stock sale resulted in a tax.
Evidence at trial showed Drage and others obtained control of public shell companies by acquiring stock in those shells through entities they controlled. Drage prepared and filed misleading and deceptive SEC filings for each of the public shells which hid and concealed his and others control of and beneficial ownership of the stock in those shells. Once control was obtained over the shell, Drage and others recruited nominees, primarily friends and acquaintances, to serve as officers or directors of those shells.
Evidence at trial showed Drage prepared corporate resolutions which facilitated the issuance of public shell stock to their controlled entities. Nominees knew nothing about the companies for which they were signing corporate resolutions. Nominees knew nothing about the financial and operational information contained in the SEC filings and simply signed the paperwork Drage prepared for them. The public shell was merged with a private company, often leaving Drage and others with free-trading shares post-merger.
Drage and others deposited more than $25 million in stock sale disbursements from brokerage accounts to 34 bank accounts in the names of controlled entities and individuals. They also made numerous transfers among the accounts. Drage and others agreed to set up these accounts, mix stock sales proceeds among them, pull from those accounts to pay for personal expenditures. They concealed from the IRS who got the money from the stock sale and whether the stock sale resulted in a tax.
Drage controlled two attorney trust accounts. For the eight years of the conspiracy, Drage commingled his stock sale proceeds with others’ stock sale proceeds. He also took money from client trust accounts, as well as other accounts, to pay for private school for his children, mortgage payments totaling $189,000, payments to his wife totaling $668,545, and payments to himself totaling $144,000 – among other expenses.
Drage also was convicted of failing to file corporate tax returns for three years. He failed to file a 2004 corporate return despite having $1,668,061 in gross reportable stock sales. He did not file a 2005 corporate return despite $2,748,633 in gross reportable stock sales. In 2006, Drage did not file a corporate return despite $26,691 in gross reportable stock sales.
U.S. District Judge David Sam set sentencing in the case for June 1, 2015, at 3 p.m. The felony count of conspiracy to impair and impede the IRS count carries a potential maximum penalty of five years in federal prison and a fine of $250,000. Willful failure to file a tax return is a misdemeanor punishable by up to a year in prison and a fine of $100,000, together with the cost of prosecution.
Defendant Pleads Guilty in Complex Real Estate ScamRead the Press Release
SAN DIEGO – Daniel Deaibes pleaded guilty today to participating in a scheme to steal title to Southern California homes, and then to “sell” the properties to unsuspecting buyers – who later learned they had actually purchased nothing.
According to his plea agreement, between September 2012 and November 2014, when Deaibes and two alleged co-conspirators were indicted and arrested, the trio fraudulently sold or attempted to sell at least 10 homes for more than $2.3 million.
As Deaibes admitted during his guilty plea, he participated in the scheme at the direction of a co-conspirator, the owner of several real estate investment outfits. According to Deaibes’ admissions, the co-conspirator and others would record fraudulent grant deeds at county recorder’s offices, so that it would appear that the true owners of homes had deeded their properties to shell companies controlled by the co-conspirator.
Once the fraudulent documents were recorded in the chain of title, the co-schemers would pose as the new owners and immediately try to sell the properties. Deaibes said his coconspirator used aliases and a host of sham businesses to pose as the owner of properties they listed for sale, and along with Deaibes, set up bank accounts for the sham companies so that fraud proceeds could be funneled out of the scheme. In this way, the conspirators would take all the proceeds of the sale, and the true owners of the properties would get nothing.
As Deaibes admitted during his guilty plea, the schemers even took steps to thwart efforts by the true owners to regain title to the properties. In one instance, true owner Fannie Mae discovered that a fraudulent grant deed had been recorded on a property it owned in Rowland Heights, California. Shortly after discovering the fraudulent deed, Fannie Mae filed a lawsuit to recover control over the property and notify prospective buyers of the fraudulent deed.
According to Deabes’ plea agreement, he and his co-schemers created a fake “Withdrawal of Lis Pendens” in an effort to proceed with the fraudulent sale. When Fannie Mae won a judgment in its favor and obtained a court finding that the deed was fraudulent, the co-schemers created a fake “Satisfaction of Judgment” and recorded that fraudulent document as well.
Deaibes also admitted that he used the alias “John Moran” to pose as the seller’s representative in several of the fraudulent sales. He introduced himself as “Moran” and presented a fake driver’s license to two different notaries in 2014. Deaibes admitted that he signed fraudulent documents using this alias in an effort to sell or encumber properties that belonged to unsuspecting owners.
Deaibes admitted that he and the co-schemers generated more than $1.5 million in profits from the scheme. In each case, the unwitting third-party buyer paid for a house believing that Alzoubi and his co-schemers had valid title. In fact, most of these properties were actually owned by Fannie Mae and Freddie Mac -- government sponsored enterprises with a mission to provide liquidity, stability, and affordability to the United States housing and mortgage markets. As part of their mission, Fannie Mae and Freddie Mac purchase residential mortgages in the secondary market, enabling lenders to replenish their funds to finance additional single family loans. Fannie Mae and Freddie Mac can become the property owners if they own the mortgage loan at the time a home is foreclosed.
U.S. Attorney Laura E. Duffy commented, “Although the Great Recession ended some time ago, some of the lingering problems in the housing market are caused by schemes, such as this one, that undermine the public’s confidence in the security of their most important investment, their homes. The Department of Justice, working closely with our law enforcement partners, is committed to aggressively prosecuting those who misuse the real estate process to commit fraud.”
FBI Special Agent in Charge, Eric S. Birnbaum, commented, “Today’s conviction is a step in the right direction in holding Mr. Deaibes accountable for his illegal activities. The FBI is committed to working with our law enforcement partners in identifying and dismantling fraudulent schemes that undermine our economy and leave taxpayers to pay the bill. The FBI will aggressively pursue these cases so that our precious tax dollars will be used where they are needed most.”
Sentencing is set for June 8 at 9:00 am before U.S. District Judge Cynthia Bashant.
Deaibes and two other defendants, Mazen Alzoubi real estate investor Mohamed Daoud, were indicted in November 2014. Deaibes and Alzoubi, who were both arrested by FBI agents on November 19, 2014, were charged with mail fraud. Daoud was arrested at Los Angeles International Airport as he prepared to depart for his home country of Norway. He was charged in a related case with conspiracy to commit mail fraud and wire fraud.
The investigation into this fraud scheme is continuing. Anyone with information relating to these charges or similar scams is encouraged to contact the San Diego branch of the Federal Bureau of Investigation at (858) 320-1800 or the Federal Housing Finance Agency - Office of Inspector General hotline at (800) 793-7724.
DEFENDANT Case Number: 14CR3325-BAS Daniel Deaibes Age: 36 Rancho Cucamonga, CA CHARGESMail fraud, in violation of 18 U.S.C. § 1341.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.
DEFENDANTS PREVIOUSLY CHARGED Daniel Deaibes, 14CR3325-BAS Age: 31 Rancho Cucamonga, CA Mail fraud, 18 U.S.C. § 1341 Mohamed Daoud, 14CR3326-BAS Age: 50 Norway Conspiracy to commit mail fraud and wire fraud, 18 U.S.C. § 1349 INVESTIGATING AGENCIESFederal Housing Finance Agency – Office of Inspector General
Federal Bureau of InvestigationAs to defendants Mazen Alzoubi and Mohamed Daoud, the public is reminded that the charges are not evidence that the defendants committed the crime charged. The defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Convicted felon sentenced for escape from reentry centerRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Billy Roy Myers, 39, of Charleston, West Virginia was sentenced today in federal court in Charleston to one year and one day in federal prison, followed by three years of supervised release. Myers pled guilty in December of 2014 to escaping from the Dismas Charities Residential Center in St. Albans, West Virginia, a federal residential reentry center, where he had been placed by the United States Bureau of Prisons after his release from prison. Myers had previously been convicted of a federal firearms violation in 2008, and after a term of imprisonment, was serving the remainder of his sentence at the Dismas Center. Myers escaped on May 6, 2014, and was apprehended on the West Side of Charleston by United States Marshals on October 6, 2014. The sentence imposed on the escape charge will run consecutive to the sentence he is currently serving for the firearms offense.
Columbia County Man Charged with Producing Child PornographyRead the Press Release
March 18, 2015
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Berwick man was indicted yesterday by a federal grand jury in Scranton on charges of producing child pornography.
According to United States Attorney Peter Smith, the grand jury alleges that Rickie Sitler, age 57, persuaded and induced a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. The indictment alleges that Sitler committed the crime between November 2014 and December 20, 2014.
The charge stems from an investigation by agents of Homeland Security Investigations, the Berwick Police Department, and the Columbia County District Attorney’s Office.
If convicted of the charge, Sitler faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty 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.
Colorado Man Sentenced to 30 Years for Child Exploitation and Pornography OffensesRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that David William Burkman, 31, of Canon City, Colorado, was sentenced today in U.S. District Court by Judge George Z. Singal to 30 years in prison and a lifetime of supervised release for sexually exploiting a child and transporting child pornography. Burkman pleaded guilty to the charges on October 20, 2014.
According to court records, in March 2014, Burkman engaged in sexually explicit conduct with a six-year-old girl and took photographs of the conduct. In April, Burkman sent an email message to the undercover email account of a Special Agent with Homeland Security Investigations in Maine. Attached to the email was one of the photographs of the girl. Burkman was arrested in May and a search warrant was executed at his residence. During an interview after his arrest, he admitted engaging in sexual activity with the six-year-old girl, taking photographs of the activity, and sharing the photographs online.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Colorado Springs Police Department.
Collin County Woman Sentenced for Child Pornography ViolationsRead the Press Release
PLANO, Texas – A 31-year-old McKinney, Texas woman has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Judith Williams pleaded guilty on Apr. 22, 2014, to conspiracy to produce child pornography and production of child pornography and was sentenced to 405 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, in December 2012, Williams videotaped herself performing oral sex on an infant she was babysitting. Williams then emailed the videos to her boyfriend, Charles Smolens. Afterwards, Smolens provided Williams with a thumb drive that contained hundreds of images of child pornography, some of which he produced himself. Williams and Smolens were indicted by a federal grand jury on Mar. 13, 2013. Smolens was sentenced to 365 months in federal prison on Jan. 9, 2015.
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 United States 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.
This case was investigated by the Federal Bureau of Investigation and the McKinney Police Department and prosecuted by Assistant U.S. Attorneys Tracey M. Batson and Mandy Griffith.
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Clarksburg, WV man sentenced for unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Clarence Thompson, 36, of Clarksburg, was sentenced today to 70 months in prison for unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Thompson was previously convicted of the felony offenses of “Delivery of a Controlled Substance (Marijuana),” “Uttering,” and Burglary.” As a result of those convictions, he is not permitted to possess a handgun. Thompson was subsequently discovered in Harrison County, West Virginia in possession of a .22 caliber pistol. He pled guilty in August 2014 to one count of “Felon in Possession of Firearm.”
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Irene M. Keeley presided.
City of Tonawanda Man Sentenced on A Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Christopher Simmance, 38, of City of Tonawanda, NY, who was convicted of possession of a firearm after having been committed to a mental institution, was sentenced to time served (19 months) and two years supervised release by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney John M. Alsup, who handled the matter, stated that on November 12, 2011, law enforcement officers responded to the defendant’s Tonawanda residence where they located a Remington shotgun. Simmance had previously received mental health treatment preventing him from legally possessing any firearms.
The sentencing is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Office, Department of Veteran’s Affairs, and the City of Tonawanda Police, under the direction of Chief William Strassburg.
Chicago Revenue Inspector Sentenced to 12 Months Probation for ExtortionRead the Press Release
CHICAGO — A former Revenue Inspector for the City of Chicago’s Department of Business Affairs and Consumer Protection was sentenced today by U.S. District Court Judge Amy St. Eve to 12 months’ probation as a result of his conviction of extortion under color of official right. ELIAS GARZA, 55, of Chicago pled guilty in February 2011 to a one-count information, admitting that while employed as a Revenue Inspector in 2009, he received money from a confidential source and an individual who controlled stores in Chicago that sold cigarettes. Garza would, in return, provide advanced notification of upcoming City inspections of those stores that were designed to ensure proper payment of taxes on cigarettes. Defendant Garza admitted that in May 2009, he accepted $500 from the confidential source in return for providing information about upcoming inspections of Individual A’s stores, and that in September 2009, Garza accepted another $300 in return for his promise to alert them of upcoming inspections.
According to his plea agreement, Garza cooperated with the United States Attorney’s Office and the Cook County State’s Attorney’s Office in their ongoing investigations of public corruption.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, and Joseph Ferguson, City of Chicago Inspector General.
The government was represented by Assistant U.S. Attorney Matt Getter.
Chicago Man Pleads Guilty to Participating in Multi-State Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 37-year-old Chicago resident pleaded guilty today before U.S. District Court Judge Robert D. Mariani to participating in a drug conspiracy that was responsible for distributing heroin and other drugs during a four-year time period in Monroe, Montgomery, and Berks Counties in Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Gilberto Bautista-Ocampo, admitted to acting as a drug courier for the conspiracy and transporting seven kilograms of heroin from Chicago to Pennsylvania in February 2014.
The charge against Bautista-Ocampo resulted from an investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, Berks County Detectives and Montgomery County Detectives.
Bautista-Ocampo faces up to 20 years in prison and a fine of up to $1 million. Judge Mariani ordered a pre-sentence report to be completed. Sentencing is scheduled to take place in June 2015.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty 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.
Charleston man who impersonated United States Marshal sentenced in federal courtRead the Press Release
CHARLESTON, W. Va. - United States Attorney Booth Goodwin announced that John E. Swain II, 52, of Charleston, West Virginia was sentenced by United States District Judge Thomas Johnston to three years of probation for impersonating a federal law enforcement officer. On April 14, 2014, Swain chased a Ford Explorer on I-77, while the passenger in Swain’s car waived a badge that appeared to belong to a United States Marshal. The driver of the Ford Explorer was an undercover Kanawha County Detective. When the Detective pulled over at the Greenbrier Street exit, Swain sped away. The Detective followed Swain and directed him to stop. When the Detective approached the car, Swain claimed he was a United States Marshal from Richmond, Virginia. Swain advised that he asked his passenger to waive the badge because the Detective was driving too fast and Swain wanted him to slow down. The Detective contacted the United States Marshal in Richmond and learned that Swain had never been employed with the federal law enforcement agency. When confronted, Swain admitted that he had lied to avoid arrest for impersonating a federal officer. Swain claimed that he bought the fake badge on the internet.
The United States Marshal Service and the Kanawha County Sheriff’s Department conducted the investigation. Assistant United States Attorney Erik S. Goes was responsible for the prosecution.
Carterville Resident Sentenced on Methamphetamine OffensesRead the Press Release
On March 17, 2015, Daniel J. E. Overmyer, 23, of Carterville, IL, was sentenced for his involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Overmyer, who had previously pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 87 months in federal prison, to be followed by 3 years’ supervised release, and was $400. The offense occurred between 2010 and January 2014, in Jackson, Williamson, Union, and Franklin Counties. Evidence at the plea and sentencing hearings established that Overmyer was involved with others in the manufacture of methamphetamine. Overmyer and others purchased pseudoephedrine for others to use in the manufacture of methamphetamine. At sentencing, the district court found that Overmyer was responsible for the illegal possession of 180.06 grams of pseudoephedrine.
Also, on March 17, 2015, two of Overmyer’s co-defendants, James C. Leming, 53, and Dawn E. Unterfer, 45, both of Carbondale, entered guilty pleas to the one-count methamphetamine indictment. Leming and Unterfer were allowed to remain on bond pending June 10, 2015, sentencing hearings. Six co-defendants have previously been sentenced for their involvement in the methamphetamine conspiracy. One co-defendant has pled guilty and is awaiting sentencing. Four co-defendants have pled not guilty and are awaiting jury trial.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
California man convicted of painkiller trafficking in Marshall County, WVRead the Press Release
WHEELING, WEST VIRGINIA – Mario O. Garcia, 41, of Van Nuys, California, was convicted in federal court today of oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Garcia admitted to oxycodone trafficking in Marshall County, West Virginia, when he pled guilty today to one count of "Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone." He faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert McWilliams is prosecuting the case on behalf of the government. The U.S. Drug Enforcement Administration - Los Angeles Field Division Tactical Diversion Squad, the Marshall County Drug and Violent Crime Task Force, and the West Virginia State Police are investigating.
U.S. Magistrate Judge James E. Seibert presided.
Buckhannon, WV man sentenced for witness tamperingRead the Press Release
ELKINS, WEST VIRGINIA – Tobias Lynn Bennett, 41, of Buckhannon, West Virginia, was sentenced today to 37 months in prison today for witness tampering, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the West Virginia State Police revealed that, while incarcerated at the Tygart Valley Regional Jail in Belington, West Virginia, Bennett discouraged two potential witnesses from testifying at a fellow inmate’s sentencing hearing. He pled guilty in December 2014 to one count of “Witness Tampering – Aiding and Abetting.”
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government.
Chief U.S. District Judge John Preston Bailey presided.