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22 April 2015
Washington Man Sentenced to Prison on Counterfeiting ChargesRead the Press Release
HELENA – A Renton, Washington man, who passed fraudulent money orders in Montana, Idaho, Washington, and Oregon, was sentenced today to 5 years in federal prison. U.S. District Judge Charles Lovell ordered James Henry Hernandez, Jr., 48, to serve 60 months in prison followed by 3 years supervised release. Hernandez was also ordered to pay $30,560 in restitution. In November 2014, Hernandez pleaded guilty to conspiracy to make and possess a counterfeited security of an organization.
Assistant U.S. Attorney Chad Spraker told the court that on August 30, 2013, Butte-Silverbow Law Enforcement officers responded to a report from Lucky Lil’s Casino that a man had passed counterfeit money orders. Upon arriving, officers asked the defendant for identification. He produced a Washington driver’s license with a false name.
During a search of the defendant’s truck, law enforcement found a number of items of contraband and suspected contraband including (1) 77 money grams in envelopes; (2) several cashed money grams; (3) 17 counterfeit $50 bills (4) a ledger listing the names of casinos and stores; (5) computer software, paper, and cutting material commonly used to manufacture counterfeit money orders and currency; (6) an electronic scale, loaded syringes, drug paraphernalia, and a padded mailing envelope with a Washington address containing OxyContin pills; (7) five Washington driver’s licenses with Hernandez’s picture, each with a different name; and (8) a social security card with an alias.
The defendant was interviewed and confessed to manufacturing currency and money orders. Hernandez further stated that he made out the money orders using fraudulent identification documents and then cashed them throughout Montana. He then went to various businesses to purchase items or reloadable debit cards. The investigation revealed the fraudulent money orders had been used to purchase goods and services in several stores throughout the northwest.
The case was investigated by Homeland Security Investigations and the United States Secret Service.
U.S. Customs and Border Protection Officer in El Paso Pleads Not Guilty to Falsification of Records in InvestigationRead the Press Release
In El Paso today, 45-year-old Supervisory Department of Homeland Security U.S. Customs and Border Protection (CBP) officer Marco Antonio Aveytia waived his arraignment and entered a not guilty plea to lying to federal authorities in connection with an ongoing investigation announced Acting United States Attorney Richard L. Durbin, Jr., CBP Deputy Special Agent in Charge Art Martinez, Jr., and Special Agent in Charge Douglas E. Lindquist of the FBI’s El Paso Division.
A federal grand jury indictment returned last Wednesday charges Aveytia with one count of falsification of records in a federal investigation. The indictment alleges Aveytia that on January 26, 2014, Aveytia provided false information that his government issued firearm was stolen during a burglary of his residence.
Upon conviction, Aveytia faces up to 20 years in federal prison and a maximum $250,000 fine.
Aveytia, who was arrested on Monday, is currently on bond awaiting further court proceedings. Jury selection and trial, before U.S. District Judge Philip Martinez, has yet to be scheduled.
The case resulted from a joint investigation by the CBP-Office of Internal Affairs and the FBI. This case is being prosecuted by Assistant United States Attorney Greg McDonald.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Two Six Nation Gang Members from Hammond IndictedRead the Press Release
HAMMOND – Two alleged members of the Two Six Nation street gang were indicted on attempted murder and firearms charges.
Charles Luis Garcia-Berrios, 22, and Julio Ivan Cartagena, 24, both of Hammond Indiana, were indicted on Wednesday, April 15, 2015 in the Northern District of Indiana on charges of attempted murder in aid of racketeering and use of a firearm during and in relation to a crime of violence. The charges arise from a car chase and shooting that occurred on August 31, 2013, during which stray rounds penetrated the house of a Hammond Police Department officer.
Both defendants appeared today before Judge John E. Martin for a hearing. Charles Luis Garcia-Berrios pleaded not guilty, waived detention and was detained pending trial. Julio Ivan Cartagena also pleaded not guilty and has a detention hearing scheduled for April 30, 2015.
The United States Attorney’s Office emphasized that an Indictment is merely an allegation and not proof of guilt. All persons charged are presumed innocent until and unless proven guilty in court.This case is being investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and Hammond Police Department. This case is being prosecuted by the United States Department of Justice Criminal Division Trial Attorney Andrew Creighton and Assistant U.S. Attorney David Nozick of the Northern District of Indiana.
Two Men Arrested for Conspiracy to Manufacture Marijuana in Rockford Warehouse on 11Th StreetRead the Press Release
ROCKFORD — Two Chicago area men were arrested today after being indicted yesterday by a federal grand jury in Rockford and charged with conspiring to manufacture, possess and distribute 1,000 or more marijuana plants. Arrested were: GEORGE H. BACUS, 51, of Niles, Ill., and JEREMIAH N. CLEMENT, 37, of Des Plaines, Ill. Also charged in the indictment were YOUSIF Y. PIRA, 62, of Chicago, Ill., and JUSTIN T. PAGLUSCH, 33, of Ingleside, Ill. The indictment alleges that between Jan. 2, 2013, and Jan. 6, 2015, the defendants conspired to illegally grow and store marijuana in a warehouse located at 1916 11th Street in Rockford. According to the indictment, Bacus initially contracted to purchase the warehouse on Jan. 2, 2013. The indictment alleges that Clement later entered into a lease with an option to purchase the warehouse. The warehouse was destroyed by a fire on Jan. 6, 2015.
Bacus is scheduled to appear before U. S. Magistrate Judge Iain D. Johnson for an initial appearance today at 3:00 p.m. in federal court in Rockford. Clement is scheduled to appear in federal court in Hartford, Connecticut at 1:30 p.m today. Arrest warrants for Pira and Paglusch were issued on April 21, 2015, and both are still at large.
The charge carries a mandatory minimum sentence of 10 years in prison and a maximum of life in prison and a $10 million fine. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Carl J. Vasilko, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Derek Bergsten, Chief of the Rockford Fire Department. The Winnebago County Sheriff’s Department Narcotics Unit and Rockford Police Department Narcotics Unit assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Indictment
Two Iowa Men Sentenced for Armed Robbery of Burlington Junction BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Iowa men were sentenced in federal court today for the armed robbery of a Burlington Junction, Mo., bank.
Donald D. Kestner, Jr., 27, of Mt. Pleasant, Iowa, and Travis Joe Davis, 28, of Fort Dodge, Iowa, were sentenced in separate appearances before U.S. Chief District Judge Greg Kays. Kestner was sentenced to 17 years in federal prison without parole. Davis was sentenced to 16 years and eight months in federal prison without parole.
Kestner pleaded guilty on Oct. 28, 2014, to one count of bank robbery and one count of brandishing a firearm during a crime of violence. Davis pleaded guilty on Oct. 30, 2014, to one count of bank robbery. Co-defendant Torrence Joseph O’Neill, also known as “Torry,” 27, of Pleasant, Iowa, pleaded guilty to bank robbery on Oct. 21, 2014, and awaits sentencing.
Kestner, Davis and O’Neill stole $12,282 from Citizens Bank and Trust, 102 W. Main St., Burlington Junction, Mo., on March 21, 2014. Kestner and Davis entered the bank about about 11:10 a.m. while O’Neill waited in their vehicle, a 1996 Ford Explorer, parked in an alley next to the bank.
Upon entering the bank, Kestner and Davis began yelling and brandishing weapons. Kestner brandished a silver semi-automatic pistol and Davis was armed with what appeared to be a black Uzi, but was later determined to be an air pistol. Davis remained in the lobby, while Kestner went behind the teller stations with the three bank employees. Kestner grabbed money from teller drawers. During the robbery, Kestner pointed his gun directly at a teller.
Kestner, Davis and O’Neill were arrested shortly after the robbery occurred. A Maryville Department of Public Safety officer, riding in an airplane being piloted by a citizen, spotted the three men walking and they were arrested by the Missouri State Highway Patrol. The vehicle used in the bank robbery was discovered hidden among some trees.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Nodaway County, Mo., Sheriff’s Department, the Maryville, Mo., Department of Public Safety, the Missouri State Highway Patrol, the Page County, Iowa, Sheriff’s Department and the FBI.
Two Honduran Citizens Plea to Drug and Immigration ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARVIN SANTOS PERDOMO, age 33, and OLVIN SANTOS PERDOMO, age 26, citizens of Honduras who reside in New Orleans, pled guilty today to a five-count Indictment charging them with conspiracy to possess with intent to distribute cocaine and, in the case of MARVIN SANTOS PERDOMO, reentry of an illegal alien.
According to the court records, MARVIN SANTOS PERDOMO and OLVIN SANTOS PERDOMO conspired to distribute and distributed cocaine hydrochloride, a Schedule II controlled drug substance. Additionally, MARVIN SANTOS PERDOMO was illegally in the United States after being previously departed.
U.S. District Judge Stanwood R. Duval, Jr. set sentencing on July 29, 2015. MARVIN SANTOS PERDOMO and OLVIN SANTOS PERDOMO face a maximum term imprisonment of twenty years and/or a fine of $1,000,000.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Two Colombian Citizens Plead Guilty in International Money Laundering ConspiracyRead the Press Release
Two Colombian citizens pled guilty for their participation in an international money laundering conspiracy.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Leonardo Forero Ramirez, 59, and Ubaner Alberto Acevedo Espinosa, 32, each pled guilty to one count of conspiracy to commit money laundering.
According to court documents, both Acevedo and Forero were Colombian citizens residing in Bogota. During 2008 and 2009, Acevedo handled customer accounts at a stock brokerage firm that offered accounts which could be used by customers to receive deposits, wire transfers, and other credit or money, and to disburse the funds through wire transfers and cash or other withdrawals. The stock brokerage firm was authorized to receive funds in U.S. dollars, provided that they were properly documented and justified as being for legitimate business transactions. Forero was one of Acevedo's customers.
During the course of his participation in this scheme, Forero received approximately $1.2 million from IRS undercover accounts which he passed on to the people designated to receive it. Acevedo was involved in the transfer of approximately $335,000 from IRS undercover accounts in the United States to the stock brokerage firm in Colombia, and the conversion of the dollars into pesos and their withdrawal by Forero. Both Acevedo and Forero knew that the money was derived from criminal activity.
Two other co-defendants indicted in this case are awaiting extradition from Columbia.
Sentencing for both defendants is scheduled before U.S. District Court Judge Ursula Ungaro on July 17, 2015 at 1:30 pm. At sentencing, the defendants each face a maximum of twenty years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Frank H. Tamen.
Two Beckley men plead guilty to selling crack cocaineRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that Dshawn Dozier, 34, and Michael Hodge, 36, both of Beckley, West Virginia, pleaded guilty today in federal court to distributing cocaine base, commonly known as crack cocaine. Dozier and Hodge both admitted that they sold crack in the fall of 2014 to individuals who were cooperating with law enforcement authorities. Both drug deals took place on Rice Street in Beckley.
Dozier and Hodge face up to 20 years in prison and a $1,000,000 fine. United States District Judge Irene C. Berger scheduled the sentencing for August 13, 2015.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigations.
Topeka Man Sentenced on Child Porn ChargesRead the Press Release
TOPEKA, KAN. - A Topeka man has been sentenced to 76 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said today.
James A. Greer, 43, Topeka, Kan., was sentenced Tuesday in U.S. District Court in Topeka. He pleaded guilty to one count of distributing child pornography. In his plea, he admitted that on March 15, 2012, an officer working with an FBI task force in Kansas City, Mo., used the Internet to download child pornography from Greer’s computer in Topeka.
A forensic exam of Greer’s electronic devices revealed approximately 900 image files and 290 video files containing child pornography.
Grissom commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Texas Man Indicted for Attempted Sexual Enticement of A MinorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Michael Doherty (51, Texas) with attempted sexual enticement of a minor. If convicted, he faces a mandatory minimum term of 10 years, up to life, in federal prison. The indictment also notifies Doherty that the United States intends to forfeit the electronic media that is alleged to have been used in the commission of the offense.
According to court documents, on March 10, 2015, an FBI agent acting in an undercover capacity (“UC”) responded to an Internet advertisement that Doherty had posted about incestuous sexual encounters. The UC responded to the ad posing as the father of a 10-year-old daughter that he was sexually abusing. Over the next several days, Doherty and the UC discussed the UC’s abuse of his “daughter.” Doherty told the UC that he wanted to watch the UC have sex with the child, and also requested naked photos of the child.
Doherty later told the UC that he traveled to Florida on business and wanted to “watch” the UC and the child. Over the course of the next several days, Doherty and the UC continued to discuss Doherty’s plans to visit. Doherty sent the UC numerous explicit pictures of himself, and he told the UC that when they met, he wanted to have sex with the 10-year-old girl.
On April 8, 2015, Doherty traveled from Miami to Lake Mary, and rented a hotel room. On his way, he stopped and bought a present for the child. When Doherty left his hotel and approached the “father” with whom he had been communicating, he was arrested.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.
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 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 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.
Sumter County Man Convicted of Federal Firearm OffenseRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Jerry Wana Taylor (52, Coleman) guilty of possessing a firearm as a convicted felon. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison. A sentencing hearing has not yet been set. Taylor was indicted on January 7, 2015.
According to evidence presented at trial, on September 29, 2013, deputies from the Sumter County Sheriff’s Office conducted a traffic stop on a vehicle in which Taylor was a passenger. A subsequent search of the vehicle revealed a loaded .22 caliber handgun inside the fuse box, near the passenger-side floor board. Results of forensic analyses revealed that DNA on the handgun matched Taylor’s DNA.
Taylor was previously convicted of numerous felonies including attempted murder, armed robbery, kidnapping, and burglary and therefore is prohibited from possessing a firearm or ammunition under federal law. As such, he qualifies for an enhanced penalty under the Armed Career Criminal statute.
This case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force, the Sumter County Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Bryon R. Aven.
Second Defendant in Wentzville Pawn Store Burglary Pleads GuiltyRead the Press Release
St. Louis, MO – BRANDON FOSTER pled guilty to charges involving his participation in the October 16, 2014, theft of firearms from Allstar Pawn in Wentzville, Missouri.
According to statements made in court, Foster, Keenan Thomas and Eugene Davis broke into Allstar Pawn at 4:15 a.m. on October 16th and stole 33 firearms -- 27 handguns and 6 rifles. On October 17, 2014, ATF attempted to arrest Foster and Thomas using three vehicles. Rather than backing out, Thomas drove forward on the grass, turning right in an attempt to elude the agents. He struck one of the ATF vehicles and then proceeded to back up almost striking an agent. After one shot was fired by an agent, Thomas stopped his car. Upon their arrest, agents recovered a Springfield Armory 9mm pistol equipped with an extended 33-round magazine on the floorboard directly under Foster. Foster admits the theft and possession of the 33 firearms from All Star and the purchasing of the ammunition and magazine from Cabela’s.
Foster, St. Louis City, pled guilty to two felony counts of being a felon in possession of a firearm before United States District Judge Catherine D. Perry. Sentencing has been set for July 23, 2015.
Co-defendant Keenan Thomas pled guilty to related charges and awaits sentencing on June 30, 2015. Eugene Davis is facing trial and is presumed innocent until and unless proven guilty.
Each charge carries a maximum penalty of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
Same Defendant, Same Bank - But Different RobberyRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Wednesday for robbing a bank that he robbed once before eight years ago, U.S. Attorney Barry Grissom said.
Mark Finnigin, 52, Wichita, Kan., was sentenced to 63 months in federal prison. He pleaded guilty to one count of bank robbery. In his plea, he admitted that on July 22, 2014, he robbed Emprise Bank, 2323 S. Hydraulic, in Wichita, Kan. He entered the bank about 9:40 a.m. and demanded a clerk give him $10,000. The clerk put some cash on the counter. Before she could finish, Finnigin took the money and fled the bank. From a nearby store, a surveillance camera recorded him getting in a minivan.
In 2007, he pleaded guilty to robbing the same bank. He was sentenced to 51 months in that case.
Grissom commended the Wichita Police Department, the FBI and Special Assistant U.S. Attorney Michelle Jacobs for their work on the case
Pierre Man Sentenced to 46 Months for Possession of Unregistered FirearmRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Pierre, South Dakota, man convicted of Possession of an Unregistered Firearm and Prohibited Person in Possession of a Firearm was sentenced on April 20, 2015, by U.S. District Judge Roberto A. Lange.
Clyde Aquallo, age 40, was sentenced to 46 months in custody for Possession of an Unregistered Firearm, and 46 months in custody for a Prohibited Person in Possession of a Firearm, to be served concurrently, two years of supervised release, a $1,000 fine, and a $200 special assessment fee to the Federal Crime Victims Fund.
Aquallo was indicted for Possession of Unregistered Firearm, two counts of a Prohibited Person in Possession of Firearm, Assault with a Dangerous Weapon, Using and Carrying a Firearm and in Relation to a Crime of Violence, and Distribution of a Controlled Substance, by a federal grand jury on December 9, 2014. He was found guilty by a jury on January 30, 2015, of Possession of Unregistered Firearm and one count of Prohibited Person in Possession of Firearm.
On February 27, 2014, Aquallo was living at a residence on the Rosebud Sioux Indian Reservation. As part of a domestic violence call, Rosebud Sioux Tribe Law Enforcement Services were called to the home where he was living and learned there were firearms in the residence that the victim wanted removed from the residence. As the investigation progressed, officers learned Aquallo was using methamphetamine and possessed several firearms, including a sawed-off shotgun, which had a barrel that was too short.
This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Tim Maher and Carrie Sanderson prosecuted the case.
Aquallo was immediately turned over to the custody of the U.S. Marshals Service.
Pensacola Man Sentenced for Federal Armed Drug Trafficking ViolationsRead the Press Release
PENSACOLA, FLORIDA – Marheem R. Smith, 24, of Pensacola, was sentenced to 8 ½ years in federal prison by Chief United States District Judge M. Casey Rodgers for possessing cocaine with the intent to distribute, possessing a firearm in furtherance of a drug trafficking offense, and possessing a firearm as a convicted felon. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
In October 2014, while attempting to arrest Smith on state charges of aggravated assault and firearm violations, law enforcement officers discovered a loaded Ruger .45 caliber pistol and bags of cocaine located inside a vehicle underneath where Smith was seated. Additionally, the officers found approximately $1,000 and a digital scale on Smith’s person. Inside an apartment linked to Smith, law enforcement seized more than 34 grams of cocaine and materials to convert powder cocaine into crack cocaine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pensacola Police Department, and the Escambia County Sheriff’s Office as part of the ATF Gun Crime Response Team. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Palm Beach County Resident Arrested for Importing FlakkaRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, announced Jaime Nicole Lewis, 22 of Palm Beach County, was charged by criminal complaint with importing and possessing with the intent to distribute Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka”. A Pre-trial detention hearing is scheduled for the defendant on Monday, April 27, 2015 at 10:00 a.m. in front of U.S. Magistrate Judge James M. Hopkins in West Palm Beach.
More specifically, the complaint charges Lewis with importing and possessing with the intent to distribute Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka” and the conspiracy to do the same, in violation of Title 21, United States Code, Sections 952(a), 963, 841(a)(1), 841(b)(1)(C) and 846, respectively. If convicted, Lewis faces a maximum statutory sentence of twenty years in prison.
In March of 2015, as a part of an ongoing investigation regarding the illegal drug trafficking of 4-Methyl-N-Ethylcathinone, a/k/a “4-MEC,” Methylone, and powdered MDMA, a/k/a “Molly” and synthetic cathinones, specifically Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka,” DEA agents received information about suspected narcotics packages being delivered to Palm Beach County. DEA Agents in London, England received information from the British authorities on multiple packages that were intercepted from a chemical company in Hong Kong, China. The Chinese based chemical company has been utilizing a shipping Company to transport chemicals to buyers in the United States. The British authorities found multiple packages that contained a white crystallized substance which tested positive for the presence of α-PVP. DEA agents delivered the package in Palm Beach County. A co-defendant of Lewis answered the door and took possession of the package. Additionally, one of the packages was addressed to Lewis and listed Lewis’ telephone number as the contact.
“Synthetic drugs are illegal and present a grave danger to our community, particularly our children,” said United States Attorney Ferrer. “Floridians can be very proud of the hard work and cooperation by federal, state and local law enforcement in identifying and investigating this important case.”
“The manufacture, sale, and abuse of synthetic drugs represents a clear and detrimental danger to our society,” said Drug Enforcement Administration Acting Special Agent in Charge A.D. Wright. “These substances serve no legitimate purpose other than to generate a powerful intoxication for the user while generating enormous illicit profits for the criminal organizations who sell them. These powerful chemicals are generally manufactured and produced in a foreign laboratory environment without safety protocols nor concerns for their potential negative effects which ultimately leaves the users at great risk of death.”
“It is DEA’s global footprint pledge, with the assistance of our law enforcement partners, to remain vigilant in our pursuit of identifying, investigating, arresting, and seizing any illicit assets from those criminal organizations who continue to circumvent the law by producing, transporting, and distributing synthetic drugs. Today’s announcement represents the culmination of months of teamwork between state, local, and federal partners. It should serve notice to any criminal organization operating with a nexus to Florida that law enforcement will not obscurely stand in the shadows, but rather will utilize all available resources to bring them to justice and hold them accountable for their actions.”
Mr. Ferrer commended the investigative efforts of the DEA. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.
A complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pair Sentenced on Child Pornography ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that James Grimes, aged 29, of Columbus, Georgia was sentenced to serve 97 months in Federal prison for possession of child pornography. He will also be required to register as a sex offender. The sentence was handed down on April 22, 2015, by the Honorable Clay D. Land, Chief U.S. District Court Judge, in Columbus, Georgia.
As part of an ongoing investigation by Homeland Security Investigations, a search warrant was executed at Mr. Grimes’ home on April 30, 2012. During a voluntary, consensual conversation with agents, Mr. Grimes admitted to owning multiple computers and having “illegal stuff” on some of them. He further admitted to accessing wireless modems around his neighborhood, downloading child pornography, and forwarding it to others. At the time of the interview, Mr. Grimes was in possession of more than 600 pornographic images.
“The defendant’s use of unsecured wireless networks to try to hide his crimes did not deter HSI special agents from tracking him down, but it should serve as a reminder to businesses and residents with networks to make sure they are secured,” said Ryan L. Spradlin, acting special agent in charge of HSI Atlanta. “We have seen cases in the past in which law enforcement agencies served search warrants on residences whose only crime was to leave their network unsecured and exploited by child pornographers.”
In a separate case, Kenneth Nichelson, aged 56, of Cataula, Georgia, was sentenced to a term of 180 months’ imprisonment by Judge Land on April 23, 2015. Mr. Nichelson entered a plea of guilty to child pornography on December 14, 2014. He admitted that between June 2010 and March 2011, he purchased nine DVDs depicting child pornography from a company in Toronto, Canada. When arrested on July 8, 2014, Mr. Nichelson was in possession of more than 10, but fewer than 150 images of child pornography on a computer in his home.
A criminal history check on Mr. Nichelson revealed that he had a previous conviction of sexual abuse in the 2nd degree in 1994 in New York. Due to his previous conviction, he was sentenced to an additional 10 years in prison.
“These defendants re-victimized the children who were exploited by the producers of the original child pornography. Their illegal actions are part of the ongoing and unspeakable trade of stealing the innocence from child victims. We will continue to use our resources not only to catch the producers of this filth, but also to catch the people who possess it,” said U.S. Attorney Michael Moore.
Assistant United States Attorney Crawford Seals is prosecuting the case for the Government. Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Pace Doctor Pleads Guilty to Tax FraudRead the Press Release
PENSACOLA, FLORIDA – Dr. Sheila Mohammed, 55, of Pace, Florida, pled guilty today to seven counts of submitting false tax returns. The guilty plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During her plea, Dr. Mohammed admitted that she signed and caused to be filed, false personal tax returns that grossly underreported her total income for tax years 2010 through 2013. In addition, Dr. Mohammed admitted that, as president and owner of The Industrial Medicine Institute, Inc., a medical practice in Pace, Florida, she signed and caused to be filed, false corporate tax returns for The Industrial Medicine Institute, Inc., for the years 2010 through 2012.
As part of the plea agreement, Dr. Mohammed agreed that the restitution amount owed for her crimes is $255,158, and she has agreed to make full restitution to the Internal Revenue Service.
Sentencing is scheduled by Chief United States District Court Judge M. Casey Rodgers on July 20, 2015, at 1:00 p.m. Dr. Mohammed faces maximum penalties of 21 years in prison (three years for each count) and a $700,000 fine ($100,000 for each count).
The charges are the result of an investigation by the Internal Revenue Service – Criminal Investigation, with assistance from the Santa Rosa County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Orlando Man Indicted for Attempted Sexual Enticement of A MinorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Ronald Grocoff (62, Orlando) with the attempted sexual enticement of a minor. If convicted, he faces a minimum mandatory term of 10 years, up to life, in federal prison.
According to court documents, on March 27, 2015, Grocoff responded to an online advertisement posted by an undercover FBI Task Force Officer (“UC”). Grocoff and the UC soon began discussing Grocoff’s interest in paying the UC to have sex with the UC’s 12-year-old “daughter.” On April 6, 2015, Grocoff made arrangements to meet the UC and his “daughter.” A few days later, he agreed to pay the UC $20 and an unspecified amount of marijuana to have intercourse and oral sex with the “child.” That afternoon, Grocoff traveled to Seminole County to meet the UC. When he arrived at the prearranged meeting place, he approached the “father” and was arrested. In addition to a small amount of suspected marijuana, agents also found condoms and lubricant in Grocoff’s possession.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ocoee Man Sentenced to Seven Years for Distribution of Child PornographyRead the Press Release
Orlando, FL – Senior United States District Judge John Antoon, II today sentenced Shawn Williams (42, Ocoee) to seven years in federal prison for distributing child pornography. He was also ordered to serve a 15-year term of supervision and to register as a sex offender upon his release from prison. Williams pleaded guilty on October 31, 2014.
According to court documents, Williams responded to a sexually explicit Craigslist ad and began conversing online with an Orlando man, William Edward Osman. The two men discussed their mutual interest in child pornography and attempted to make arrangements to meet in person for a sexual rendezvous. On May 9, 2013, Williams used his cell phone to send Osman images depicting child pornography, and they discussed meeting to share their collections of child pornography. During their conversations, Osman told Williams that he had a one-year-old child. Williams then asked Osman to send him “baby pics” and “adult with baby pics.”
On October 15, 2013, special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations arrested Osman on charges related to the sexual exploitation of children. Agents seized Osman’s phone and identified Williams as one of the individuals with whom he had been electronically trading child pornography.
On September 3, 2014, Osman was sentenced to 60 years in federal prison for producing, distributing, and possessing child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.
This was 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.
Noble Energy Inc. Agrees to Make System Upgrades and Fund Projects to Reduce Air Pollution in ColoradoRead the Press Release
Today, a settlement with Houston-based Noble Energy, Inc. resolving alleged Clean Air Act violations stemming from the company’s oil and gas exploration and production activities in the Denver-Julesburg Basin, north of Denver, Colorado. The settlement resolves claims that Noble failed to adequately design, size, operate and maintain vapor control systems on its controlled condensate storage tanks, resulting in emissions of volatile organic compounds (VOCs). VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis, announced the Department of Justice’s Environment and Natural Resources Division, the Environmental Protection Agency (EPA) and the state of Colorado.
As part of the settlement, Noble will spend an estimated $60 million on system upgrades, monitoring and inspections to reduce emissions, in addition to $4.5 million to fund environmental mitigation projects, $4 million on supplemental environmental projects and a $4.95 million civil penalty.
The case arose from a joint EPA and Colorado investigation that found significant VOC emissions coming from storage tanks, primarily due to undersized vapor control systems. Noble has agreed to evaluate vapor control system designs, significantly reduce VOC emissions, and provide reports to the public. These reports will give other companies the opportunity to learn and apply this information to emissions estimates and vapor control system designs. Using advanced monitoring technologies, Noble will be better able to detect air pollution problems in real time and ensure proper operation and maintenance of pollution control equipment.
“This first-of-its-kind settlement takes a basin-wide, systematic approach to address oil and gas emissions,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “Our nation’s energy security and independence requires that oil and gas production be done safely, responsibly and lawfully. We look forward to continuing to work with states and the oil and gas industry to ensure that oil and gas emissions are minimized nationwide.”
“Today’s settlement shows what can happen when federal and state governments work together to find innovative solutions to today’s complex pollution challenges,” said Cynthia Giles, assistant administrator for enforcement and compliance assurance at EPA. “This agreement highlights how air pollution can be addressed from a significant sector in a commonsense way, and helps spur development of advanced pollution control technologies that will be available to the entire industry. As domestic energy development grows, we all have a stake in making sure it’s done responsibly.”
Under the settlement lodged today in Colorado, Noble will perform engineering evaluations and make modifications to ensure that its vapor control systems are properly designed and sized to capture and control VOC emissions. Noble will use an infrared camera to inspect these systems, both initially to confirm capture and control of VOCs and periodically to verify proper upkeep and operation. These activities will be audited by a third-party and Noble will develop and post reports summarizing its engineering evaluations and modifications online. Additionally, Noble will install monitors at certain storage tanks to detect tank pressure increases that may indicate possible emission releases. Noble has also committed to evaluate the condition of pressure relief valves, thief hatches and mountings and gaskets on each storage tank and address any evidence of VOC emissions from those devices.
EPA estimates that modifications to the vapor control systems will reduce VOC emissions by at least 2,400 tons per year and that significant additional reductions will be achieved with operational and maintenance improvements.
The settlement covers all of Noble’s controlled condensate storage tanks in the Denver eight-hour ozone marginal nonattainment area that have vapor control systems operating pursuant to the Colorado State Implementation Plan – more than 3,400 tank batteries, which are multiple storage tanks located together. Noble must survey all of its controlled condensate storage tanks in the area and implement any needed design changes to minimize emissions and ensure compliance with state regulations. Noble already has begun this work, having focused first on its largest storage tank batteries.
In addition to system upgrades, monitoring and inspections, Noble will spend at least $4.5 million on mitigation projects to reduce and prevent harmful emissions. These projects include: offloading condensate from storage tanks into tanker trucks in a closed system to prevent vapors from being emitted to the atmosphere, retrofitting diesel engines on drilling rigs and pumps used in fracturing operations to lower emissions of nitrogen oxide or ozone precursors and replacing high-emitting two-stroke gas-fired lawnmowers being used by residents with electric lawnmowers. These projects are expected to reduce VOC and nitrogen oxide emissions by a combined 800 tons or more per year. Additionally, Noble will require its tank truck contractors to implement an alternative oil measurement standard once it is approved by relevant authorities. This would substantially reduce or eliminate VOC emissions associated with opening storage tanks’ thief hatches.
Noble will also complete supplemental environmental projects costing a total of $4 million. One of the projects will provide financial incentives to residents in the ozone non-attainment area to replace or retrofit inefficient, higher-polluting wood-burning or coal appliances with cleaner burning, more efficient heating appliances and technologies. This project is expected to achieve emission reductions of 450 tons per year of carbon monoxide, 130 tons per year of VOCs, 60 tons per year of fine particulates known as PM2.5 and 10 tons per year of hazardous air pollutants. A second project will consist of a study – portions of which will be reported publicly – evaluating the reliability of various pressurized hydrocarbon liquids sampling and laboratory analysis techniques. The study is expected to result in more accurate data to estimate emissions associated with condensate storage tanks. Noble will spend $2 million on additional State-approved supplemental environmental projects. Noble will propose projects for state approval after the court concludes its review of the settlement.
This settlement is part of EPA’s national enforcement initiative to reduce public health and environmental impacts from energy extraction activities. For more information about EPA’s enforcement initiative, click here: http://www2.epa.gov/enforcement/national-enforcement-initiative-ensuring-energy-extraction-activities-comply
The state of Colorado will receive $1.475 million of the total $4.95 million civil penalty in this case.
The proposed consent decree is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at http://www.justice.gov/enrd/Consent_Decrees.html.
Muskogee Man Sentenced to 120 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that HANK JOSHUA BELL, age 34, of Muskogee, Oklahoma, was sentenced to 120 months imprisonment for Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
Charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation. The defendant was indicted in November, 2014 and pled guilty in December, 2014.
The Indictment alleged that on or about October 8, 2014, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Linda Epperley represented the United States.
Morris County, N.J., Man Sentenced to 44 Months in Prison for Defrauding Investers of $500,000 Through Phony Investment SchemeRead the Press Release
NEWARK, N.J. – A Morris County, N.J., man was sentenced today to 44 months in prison for fraudulently obtaining $500,000 by promising investors favorable returns and that funds would be used to finance educational television programming for teenage audiences, U.S. Attorney Paul Fishman announced.
Peter Lareau, 78, of Mountain Lakes, N.J., previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of wire fraud. Judge Salas imposed the sentencing in Newark federal court.
According to documents filed in this case and statements made in court:
From June 2008 through January 2010, Lareau created numerous entities, including T4Teens LLC and Concordia Mediaworks LLC, for the purpose of soliciting investors. Lareau recruited investors through civic, religious and charitable organizations, as well as through alumni events at prestigious education institutions.
In addition to promising greater-than-market returns, Lareau falsely represented that investors’ funds would be used for educational television programming for teenage audiences.
He sent investors prospectuses and other information related to investment opportunities by email and then directed them to wire funds from brokerage accounts in New York to his business accounts in New Jersey.
Instead of using the funds for educational programming or other business-related purposes, Lareau used those funds for personal expenses, including groceries, tuition payments for his child, rent payments, and club memberships.
In addition to the prison term, Judge Salas sentenced Lareau to one year of supervised release and ordered him to pay restitution of $533,000.
U.S. Attorney Fishman credited special agents from the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing.
The government is represented by U.S. Attorney Lorraine S. Gerson of the Economic Crimes Unit in Newark.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Memorial Herman Printing and Mail Services Manager Admits to Embezzling Nearly $10 Million in False Invoicing SchemeRead the Press Release
HOUSTON – Kenneth Joseph Wild II, 49, of Katy, has pleaded guilty to defrauding his employer, Memorial Herman Health Systems, of nearly $10 million over a 14-year period, announced U.S. Attorney Kenneth Magidson.
In a proceeding before the Honorable Kenneth M. Hoyt this morning, Wild entered his guilty plea to a criminal information charging a single count of mail fraud.
Wild’s plea agreement explains that on or about Feb. 23, 2001, he was appointed as manager of Printing and Mail Services, a division within Memorial Herman which oversees and outsources the creation of all informational and promotional materials disseminated by Memorial Herman. In this role, Wild had the responsibility for approving invoices submitted for printing services utilized by Memorial Herman and for forwarding those invoices to accounts payable for payments to be remitted via checks delivered by U.S. mail.
On or about March 8, 2001, just two weeks after Wild’s promotion to management, an entity named Digital Designs Limited began submitting invoices to Memorial Herman for printing and data conversion services purportedly provided to Memorial Herman. Wild used his position to cause the Digital Designs invoices to be approved. Over the span of 14 years, from March 2001 through March 2015, Wild submitted 229 invoices totaling $9,302,667.29 in the name of Digital Designs for services that were never provided to Memorial Herman.
On March 11, 2015, Memorial Herman’s chief audit and compliance officer received an anonymous, hand-written letter alleging the Digital Designs account was an anomalous, ghost account and asking for an investigation. As a result, Memorial Herman swiftly conducted a preliminary review of the account and immediately reached out to law enforcement to report the incident.The investigation revealed that the address listed for Digital Designs was a P.O. Box opened by Wild in 1996. In October 2001, Wild had obtained an assumed name certificate from the Harris County Clerk’s Office for “Digital Designs of Texas, P.O. Box 36345, Houston, TX 77236.” The investigation further revealed that payments remitted to Digital Designs were deposited into a bank account which was assigned to Wild with a dba of Digital Designs. Wild deposited the checks from Memorial Herman into that account and then transferred those funds to other accounts he controlled. He then used the funds to support his extravagant lifestyle which included, among other things, making significant personal expenditures, purchasing a home and making substantial improvements and extensive international travel for himself and his family and friends.
As part of his plea agreement, Wild agreed to forfeit his home and all of its contents, his vehicles, his 401K pension plan with Memorial Herman and any other financial assets in his possession. These funds will be used to pay restitution to Memorial Herman.
Judge Hoyt accepted the plea today and has set sentencing for June 29, 2015, at which time Wild faces up to up to 20 years in federal prison and a possible $250,000 maximum fine. He has been in custody since his arrest on March 21, 2015, where he will remain pending that hearing.
The charges are the result of an investigation by U.S. Postal Inspection Service. Assistant U.S. Attorney Jason Varnado is prosecuting the case.
Martinsburg woman convicted of falsifying mortgage documentsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Amanda Bishop, 35, of Martinsburg, was convicted today in federal court after she submitted fraudulent mortgage documents during court proceedings, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Federal Bureau of Investigation revealed that Bishop fell behind on her mortgage payments and subsequently created and submitted to the court fake bank statements purporting to show that she had made mortgage payments in the amount of $1,848.00 on Nov. 17, 2010 and Dec. 15, 2010.
Bishop pled guilty today to one count of “False Declaration Before Court,” for which she faces up to five years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Paul Camilletti and Anna Krasinski prosecuted the case on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Manhattan U.S. Attorney Announces Charges and Arrest in “Pump and Dump” Stock Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent-in-Charge of the Newark Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the arrest of DWAYNE BIGELOW for allegedly participating in a $9 million “pump and dump” stock fraud scheme. Twelve other participants in related pump and dump stock fraud schemes have previously been convicted. As alleged in the Superseding Indictment unsealed yesterday, BIGELOW orchestrated a scheme to manipulate the price of penny stocks through the dissemination of misleading promotional campaigns designed to induce victim investors to purchase penny stocks at artificially inflated prices, thereby allegedly permitting BIGELOW and others to sell the stock they held at a profit. BIGELOW was arrested in Florida yesterday and was presented today in federal court in the Southern District of Florida. BIGELOW will be arraigned at a later date before United States District Judge Paul A. Crotty, to whom the case is assigned.
Manhattan U.S. Attorney Preet Bharara said: “Dwayne Bigelow is alleged to have engaged in a classic pump and dump scheme where the prices of worthless stocks were inflated with the puffery and false representations of paid stock promoters. Bigelow and his co-conspirators allegedly got wealthy, while their victims got fleeced. I want to thank the IRS and the HIDTA Task Force for their work in policing this alleged fraud.”
IRS-CI Special Agent-in-Charge Jonathan D. Larsen said: “Illegal activity involving the investment industry has brought financial ruin to many Americans. As alleged in the indictment, Mr. Bigelow and his co-conspirators manipulated certain penny stocks in a pump and dump scheme that enabled them to earn profits to the tune of over $9 million dollars. IRS-Criminal Investigation is proud to bring our financial investigative skills to team up with our law enforcement partners to investigate and put a stop to this type of illegal activity.”
As alleged in the Superseding Indictment, other documents previously filed in this case, and evidence introduced in court:
DWAYNE BIGELOW and his co-conspirators orchestrated a scheme to defraud investors in multiple companies by helping to take those companies public, hiring individuals to engage in misleading promotion campaigns designed to increase the price and trading volume of the companies’ stocks, and then taking advantage of the “pumped up” price and trading volume by “dumping” their shares into the market.
The scheme worked as follows: BIGELOW and his co-conspirators targeted privately held companies, which were engaged in little to no legitimate business activity, and orchestrated so-called “reverse mergers” between the target companies and shell companies controlled by BIGELOW and others. As a result, BIGELOW and his associates and co-conspirators obtained large quantities of publicly traded shares in the targeted companies, which traded as penny stocks.
BIGELOW then paid other individuals who acted as promoters to carry out misleading promotional campaigns, including by sending e-mails touting the stocks to lists of potential investors using purportedly independent stock analysis email newsletters. These misleading promotional campaigns caused demand for stock in the targeted companies, and the prices of the target companies’ stocks, to rise. BIGELOW and his co-conspirators took advantage of the “pumped-up” stock trading volume and price by “dumping” their shares into the market until the misleading promotional campaign had run out of steam.
The Superseding Indictment alleges three pump and dump securities and wire frauds concerning the stocks of Emerging World Pharma, Inc. (“EWPI”), SMC Entertainment, Inc. (“SMCE”), and Sierra Resources Group, Inc. (“SIRG”). According to the Superseding Indictment, BIGELOW and his co-conspirators made over $9 million from manipulation of these three stocks alone.
BIGELOW, 46, of Jupiter, Florida, is charged in the Superseding Indictment with one count of conspiracy to commit securities fraud and wire fraud (Count One), three counts of securities fraud (Counts Two through Four), and three counts of wire fraud (Counts Five through Seven). The securities and wire fraud charges carry a maximum term of 20 years in prison on each count, and the conspiracy charge carries a maximum term of five years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This case originated out of the Government’s long-term investigation into criminal conduct at the Port of New York-New Jersey, which uncovered the charged “pump and dump” stock fraud scheme. Mr. Bharara thanked the Internal Revenue Service-Criminal Investigations’ New Jersey office, as well as the other participants in the High Intensity Drug Trafficking Area (“HIDTA”) Task Force, which includes the New Jersey Offices of the Drug Enforcement Administration and Immigration and Customs Enforcement’s Homeland Security Investigations, for their outstanding work on the investigation. Mr. Bharara also thanked the Securities and Exchange Commission and the Financial Industry Regulatory Authority for their assistance with the investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Howard S. Master, Carrie H. Cohen, and Katherine C. Reilly are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Dwayne Bigelow Indictment
Man Sentenced to 48 Months in Prison for AssaultRead the Press Release
United States Attorney James L. Santelle announced that Scott C. Rettler, (age: 45) of Neopit, WI located on the Menominee Indian Reservation, was sentenced on April 20, 2015, to 48 months of imprisonment, followed by a three year term of supervised release. The sentence was the result of a guilty plea by Rettler on January 26, 2015, to a federal information charging him with assaulting his girlfriend, which resulted in substantial bodily injury to the victim.
The investigation revealed that on October 14, 2014, Rettler assaulted his girlfriend, with a hammer at a residence on the Menominee Indian Reservation.
This case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.
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Lowell Man Sentenced for Firearms TraffickingRead the Press Release
BOSTON – Julio Gomez, 30, of Lowell, Mass., was sentenced yesterday by U.S. District Court Judge Richard G. Stearns to 57 months in prison and three years of supervised release. In January 2015, Gomez pleaded guilty to being a felon in possession of a firearm.
On May 2, 2014, after law enforcement officers determined that Gomez was trafficking firearms, they executed a federal search warrant at 43 Elm Street, Apartment 4, in Lowell, Mass. During a search of the residence, which was used by Gomez and others as a base of operation in an illegal gun trafficking business, officers seized a Remington Arms rifle, a WASR-10 rifle, and a High Standard revolver loaded with nine rounds of ammunition, as well as an additional 193 rounds of ammunition.
During an interview, Gomez admitted to selling 12 to 14 firearms to two men from Boston. Gomez explained that he was the middleman for the transactions and that he found buyers for people looking to sell firearms.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Lowell Police Superintendent William Taylor, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Tobin of Ortiz’s Major Crimes Unit.
Louisville Man Charged with Robbing Seven Pharmacies Located in Jefferson County, KentuckyRead the Press Release
LOUISVILLE, Ky. – A Louisville man was charged today, by a federal grand jury, with robbing seven pharmacies located in Jefferson County, Kentucky, including carrying a firearm during one of the robberies, announced Acting United States Attorney John E. Kuhn, Jr.
Matthew Williams was charged in an eight count indictment with robbing the pharmacies beginning on September 13, 2013 through January 2, 2014, when he was arrested by Metro Louisville Police.
According to the indictment, Williams allegedly robbed the following pharmacies: the CVS Pharmacy located at 3229 Poplar Level Road, Louisville, Kentucky, by means of actual and threatened force, violence, and fear of immediate injury to an employee, on September 13, 2013; the Walgreen’s Pharmacy located at 12101 Shelbyville Road in Middletown, by means of actual and threatened force, violence, and fear of immediate injury to an employee on September 28, 2013, October 26, 2013, December 20, 2013, and January 2, 2014. During the alleged robbery on January 2, 2014, Williams is further charged with carrying a firearm. Additional alleged robberies occurred at the CVS Pharmacy located at 13900 Shelbyville Road, in Louisville, on September 29, 2013, and the Walgreen’s Pharmacy located at 2368 Frankfort Avenue, in Louisville, on November 6, 2013.
If convicted at trial, Williams could be sentenced to no more than 20 years for counts 1-7, and no less than 5 years for count 8. Further, Williams could be required to pay a fine of $2,000,000 and serve a period of supervised release. Kentucky Circuit Court charges against Williams will be dismissed in lieu of the federal charges taken today.
This federal prosecution stems from “Project Recoil,” the ongoing partnership of multiple law enforcement agencies, developed by The U.S. Attorney’s Office for the Western District of Kentucky, to maximize penalties for the most violent repeat offenders, and to reduce violent crime in our community.
This case is being prosecuted by Assistant United States Attorney Thomas W. Dyke, and is being investigated by the Louisville Metro Police Department.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Longtime Advocate Honored for Combating Crimes Against ChildrenRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, presented the Crystal Kipper & Ali Kemp Memorial Award today to Craig Hill, a professional consultant with a long history of combatting crimes against children during many years working in law enforcement as well as through his own organization and the National Center for Missing & Exploited Children.
Today’s award ceremony was part of an annual event hosted by the U.S. Attorney’s Office and VictimNet, a coalition of victim service providers and others committed to meeting the needs of crime victims in Jackson County, in conjunction with the observance of National Crime Victims’ Rights Week. This year’s theme – “Engaging Communities. Empowering Victims” – emphasizes the role of the entire community, individually and collectively, as we support victims of crime and empower them to direct their own recovery.
Hill is a consultant who presents law enforcement training and public lectures in conjunction with the National Center for Missing & Exploited Children, where he formerly served as associate director of law enforcement training and outreach for more than five years.
“Craig Hill has spent his career either directly working in law enforcement, or working to support law enforcement,” Dickinson said. “Some people retire to play golf, or go fishing. When Craig retired as Deputy Police Chief in the Leawood Police Department, he didn’t skip a beat. Craig continued to pursue his passion for protecting children and for equipping and training law enforcement officers and other professionals who are in the trenches combatting these heinous crimes.”
After 33 years in the Leawood, Kan., Police Department, the last five as Deputy Police Chief, Hill went to work for the National Center for Missing & Exploited Children (NCMEC).
“That was a natural progression for him,” Dickinson said, noting that during his tenure with the Leawood Police Department he was a co-founder of The Lost Child Network. The Lost Child Network, where Hill served as president for 14 years, was one of the nation’s first non-profit child resources centers when it was founded in 1984. Hill traveled throughout the United States and parts of Canada to lecture on the crimes committed against children. The Lost Child Network played a role in the recovery of several children who were reported missing, working with local, state and federal law enforcement agencies as well as NCMEC.
The Lost Child Network merged with NCMEC in 1998 to become the Kansas City branch of that national organization and Hill joined NCMEC’s board of directors. In 2005, Hill retired from the police force and became the associate director of law enforcement training and outreach for NCMEC. In that role, he was responsible to provide training in more than 230 cities to local, state and federal law enforcement agencies, prosecutors, parole and probation workers, employees of corrections departments and social services agencies, and child advocacy centers. The training covered the dynamics of the crimes committed against children, tactics used by the offenders, preparing first responders and prevention strategies.
In 2011 Hill formed his consulting company, Craig Hill Consultant, LLC. Hill is also the executive producer for Media Consultant, LLC, which provides development and design for in-service training, print adds, video productions and computer graphics design. Among the firm’s clients is the FBI International Symposium on Agroterrorism.
Hill is a graduate of the FBI National Academy and an active member of the FBI National Academy Associates, Inc.
National Crime Victims’ Rights Week
The Crystal Kipper & Ali Kemp Memorial Award is presented by the U.S. Attorney’s Office each year during the local observance of National Crime Victims’ Rights Week to recognize the outstanding work of an individual or organization in protecting children from exploitation. The award was presented to Hill in memory of Crystal Kipper and Ali Kemp, two young women who were both fatal victims of tragic crimes. Anna Rhea, Crystal Kipper’s mother, and Roger Kemp, Ali Kemp’s father, participated in today’s presentation.
Today’s event at the Power and Light District also featured comments from the Jackson County Prosecutor’s Office and Alvin Brooks of the AdHoc Group Against Crime. The event showcased various local victim service providers and a solidarity walk led by the Kansas City Mounted Patrol and Parents of Murdered Children. An art display featured the work of students of MyARTS.
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The U.S. Attorney’s Office has a dedicated Victim/Witness Unit that serves federal crime victims across the district’s 66 counties. Members of this unit notify victims of significant case events through the Department of Justice’s Victim Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. Victim/Witness personnel accompany victims to court hearings and trials to ensure that victim participation in court proceedings is meaningful and to answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the U.S. Attorney’s Office Victim/Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/.
The Crystal Kipper & Ali Kemp Memorial Award
Crystal Kipper was an 18-year-old Gladstone, Mo., resident who was murdered after her car broke down on Interstate 29, just north of Platte City, on Feb. 24, 1997. Ali Kemp was a 19-year-old Blue Valley North High School graduate who was murdered on June 18, 2002, while she worked at the Foxborough neighborhood swimming pool in Leawood, Kan.
Logan County man sentenced for role in Arch Coal kickback schemeRead the Press Release
CHARLESTON, W.Va. – Scott Ellis, 45, of Holden, West Virginia, was sentenced today by Judge Thomas Johnston to three years of probation and a $3,000 fine announced United States Attorney Booth Goodwin. Ellis had previously pleaded guilty in July of 2014 to structuring, a federal crime that involves the breaking down of cash banking transactions in amounts of $10,000 or less to avoid triggering a financial institution’s reporting requirements to the Internal Revenue Service (IRS). Ellis also admitted that he and his business partner, Stephen Herndon, paid hundreds of thousands of dollars in kickbacks to the general manager of Arch Coal’s Mountain Laurel mining complex, located in Logan County.
Ellis admitted that he owned Tri-State Mine Service, Inc., a vendor at Mountain Laurel that rebuilt mining equipment. Ellis gave Herndon a half interest in Tri-State in approximately March 2011, after Herndon left his position at Mountain Laurel as the warehouse manager. To ensure that Tri-State received the rebuild work from Mountain Laurel, Ellis, later joined by Herndon, engaged in a bid-rigging scheme where, in exchange for a guaranteed winning bid on certain jobs, vendors had to pay cash kickbacks to a person identified in other court documents as David Runyon.
Ellis initially delivered the cash to Herndon, while he worked at Mountain Laurel, or Runyon. While Herndon was the warehouse manager at Mountain Laurel, from approximately 2006 through March 2011, he served as a facilitator of kickback payments by vendors at Mountain Laurel to Runyon.
To generate the necessary cash, Ellis, later joined by Herndon, structured cash withdrawals from various personal and business accounts in amounts of $10,000 or less. They conducted the cash withdrawals in that manner to avoid triggering the bank's obligation to file a currency transaction report with the Internal Revenue Service.
Between early 2009 and approximately March 2011, Ellis structured approximately $163,521.25 in cash transactions. Ellis estimates that almost all of those funds were used to pay cash kickbacks to Runyon, and that he paid approximately $187,000 in cash kickbacks during that time. Between April 1, 2011, and September 30, 2013, Herndon and Ellis, working together, structured approximately $183,853. They estimate that they used almost all of those funds to pay cash kickbacks to Runyon and that they paid approximately $237,000 in cash kickbacks during that period.
Ellis has agreed to forfeit $215,355.85 to the United States, representing a portion of the funds involved in and traceable to structuring.
Today’s sentencing stems from an investigation being conducted by the FBI, IRS Criminal Investigation, United States Postal Inspection Service, and the West Virginia State Police. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution.
Local oil and gas company fined $600,000 for Clean Water Act violationsRead the Press Release
WHEELING, WEST VIRGINIA – Trans Energy, Inc., an oil and gas exploration company based in Pleasants County, West Virginia, was sentenced today to two years of probation and ordered to pay fines totaling $600,000.00 after the company admitted to multiple violations of the Clean Water Act in connection with its natural gas drilling activity, United States Attorney William J, Ihlenfeld, II, announced.
Trans Energy sought to capitalize on Marcellus Share natural gas resources in West Virginia. The company discharged materials such as rock, sand, soil and stone into streams in Marshall County, West Virginia to build large impoundments, or reservoirs of water, to supply water to nearby well sites. The reservoirs of water were subsequently used for Marcellus Shale drilling activity. Trans Energy further failed to properly train and supervise its employees and relied upon the unsubstantiated representations of a nearby property owner when determining whether environmental laws were being followed.
“Natural wetlands are essential for the overall health of the environment and of our communities,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s Criminal Enforcement Program in the Middle Atlantic States. “In addition to providing habitat for hundreds of fish and animal species, wetlands filter and slow the flow of surface water, reducing the impact of flooding. Today’s sentence demonstrates that EPA and its law enforcement partners will remain vigilant in protecting our nation’s wetlands and water supplies.”
Trans Energy admitted that it unlawfully dumped pollutants into Marshall County waterways when the company pled guilty in October 2014 to three counts of “Negligent Discharge of Pollutants without a Permit.” Trans Energy President John C. Corp executed the plea agreement on behalf of the company.
The Clean Water Act, also known as the Federal Water Pollution Control Act, was enacted by Congress to restore and maintain the integrity of the Nation’s waters. It prohibits the discharge of pollutants from a point source into the waters of the United States without a permit. Discharges of dredged or fill material into waters of the United States are prohibited unless authorized by the U.S. Army Corps of Engineers.
Assistant U.S. Attorney David J. Perri and Special Assistant U.S. Attorney Perry McDaniel prosecuted the case on behalf of the government. The U.S. Environmental Protection Agency, Criminal Investigation Division led the investigation.
U.S. District Judge John Preston Bailey presided.
Local Man Pleads Guilty to Credit Card Fraud and Identity Theft ChargesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Dariel Sardinas Lopez (22, Tampa) today pleaded guilty to credit card fraud and identity theft. He faces a maximum penalty of 10 years in federal prison on the credit card fraud charges, followed by two years on the identity theft charges. Sardinas Lopez was indicted on February 5, 2015. His sentencing date has not yet been set.
According to the plea agreement, Sardinas Lopez produced and trafficked in counterfeit credit cards. These fraudulent credit cards were encoded with the numbers and information of victims whose credit cards had been “skimmed” by the defendant and others, after the cards had been used at local gas stations. The victims were often unaware that their information had been stolen. Sardinas Lopez sold these counterfeit credit cards and also used them to purchase merchandise for himself.
This case was investigated by the Financial Crimes Task Force, which includes the United States Secret Service, Florida Department of Law Enforcement, Hillsborough County Sheriff’s Office, and Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Local Man Convicted for Production of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – A federal trial jury convicted Ralph Jason Miller, 32, of Woodville, Florida, of three charges of using a minor in the production of child pornography and one charge of committing these offenses while required to register as a sex offender under the laws of the State of Florida and the United States. The verdict was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, on three occasions, in January, April and July 2012, Miller caused a minor to engage in sexual intercourse and in graphic sexual displays for the purpose of making visual depictions of these activities. Sheriff’s detectives discovered these images when they executed a search warrant on Miller’s residence on December 4, 2013. Miller was required to register as a sex offender at the time of the production of child pornography offenses because he was convicted of sexual battery in Leon County in 2002.
United States District Judge Robert L. Hinkle presided over the jury trial. He set sentencing for July 16, 2015. Because of the prior conviction, Miller may face imprisonment for at least 25 years and a maximum of 50 years on each of the production convictions. He faces an additional term of 10 years’ imprisonment, which must be served consecutively, for being required to register at the time of those offenses.
United States Attorney Marsh praised the work of the Leon County Sheriff’s Office, the Florida Department of Law Enforcement (FDLE), the State Attorney’s Office for the Second Judicial Circuit, and the United States Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), whose joint investigation led to the convictions in this case. This case was prosecuted by Assistant United States Attorney Michael T. Simpson.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Lindsey Man Pleads Guilty to Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CODY DILLON CORDELL, age 27, of Lindsey, Oklahoma, pled guilty to an Information charging him with WIRE FRAUD, in violation of Title 18, United States Code, Section 1343.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Information alleged that on or about March 13, 2013 to on or about March 15, 2013, within the Eastern District of Oklahoma and elsewhere, the defendant, CODY DILLON CORDELL devised and intended to devise a scheme and artifice to defraud Action Petroleum Services Corp. to obtain money and property by means of materially false and fraudulent pretenses, representations and promises.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion. The defendant remains on bond pending sentencing.
The statutory range of punishment is up to 20 years imprisonment, a fine of up to $250,000.00 or both.
First Assistant United States Attorney Doug Horn represented the United States.
Landlords Agree to Settle Claim that They Violated Two Servicemembers’ Federal Right to Break Their Lease when Transferring from JBLMRead the Press Release
The U.S. Department of Justice and Loren and Holland Cohen have entered into a settlement agreement to remedy alleged violations of the federal Servicemembers Civil Relief Act (SCRA), announced Acting U.S. Attorney Annette L. Hayes. The U.S. Attorney’s Office for the Western District of Washington began its investigation after receiving a complaint from Joint Base Lewis-McChord’s (JBLM) Main Legal Assistance Office, alleging that the Cohens violated the SCRA when (1) they refused to return a ($2,150.00) security deposit to their tenants, S.Sgt. Marquis Bines, United States Army, and T.Sgt. Meoisha Bines, United States Air Force, and (2) they demanded all remaining rental payments due under the lease in the amount of $10,750.00, rather than permitting the Bines to terminate their lease several months early and receive their full deposit, as was their right under the SCRA, when they unexpectedly were transferred from JBLM to Shaw Air Force Base in South Carolina.
“The law provides that landlords have a legal obligation to ensure servicemembers can move freely when military duty demands it,” said Acting U.S. Attorney Annette L. Hayes. “Just as our dedicated men and women of the military protect our freedoms overseas, we must protect their interests here at home. The U.S. Attorney’s Office is committed to protecting the housing rights of those who secure the rights of all Americans.”
Under the settlement reached Monday, the Cohens admitted no violation of the law, but agreed to: (1) abide by policies and procedures that ensure that servicemembers who rent the Cohen’s property will be aware, and ensured of their rights under the SCRA; (2) promptly report any servicemember complaints to the United States Attorney’s Office; (3) dismiss their claim for over $10,000.00, brought in Pierce County District Court against the Bines; and (4) pay the Bines $4,000 for their deposit and other financial hardship the Bines suffered.
The Bines entered into a one-year lease to rent the Cohens’ condominium, located in Tacoma, Washington, while they served their country at JBLM. Approximately six months into the lease, the Bines received permanent change of station (PCS) orders from their respective branches and sought, as was their right under the SCRA, to terminate the lease and receive their security deposit. The Cohens claimed that the Bines had not complied with the SCRA’s technical notice of termination provisions and also withheld the security deposit, claiming that the “damage” to the property was ten (10) times the original estimate made during the Bines’ walkthrough. JBLM attorneys advised the Cohens that their interpretation of the SCRA was incorrect and that the calculation of the charges against the deposit was excessive. Ignoring this, the Cohens then claimed that the Bines were in breach of the lease and that the entire remaining balance due under the lease was thereby “accelerated,” in an amount over $10,000. Following a thorough investigation, the U.S. Attorney’s Office concluded that the Cohens unreasonably refused to return the security deposit and that the Cohens illegally demanded further rental payments from the Bines. The Cohens fully cooperated with the United States Attorney’s Office’s investigation and settlement of this matter.
The SCRA provides certain protections to active duty servicemembers who must terminate residential leases to comply with military orders for a permanent change of station or for deployment. Servicemembers who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Interested persons, including landlords, may find additional information about the SCRA and the Justice Department’s enforcement of that law, and other laws protecting servicemembers, at www.servicemembers.gov.
This matter was handled by Assistant United States Attorney and Civil Rights Program Coordinator J. Michael Diaz in the U.S. Attorney’s Office for the Western District of Washington, in collaboration with Housing and Civil Section of the Civil Rights Division of the Justice Department.
Laguna Pueblo Man Pleads Guilty to Federal Misdemeanor Assault ChargeRead the Press Release
ALBUQUERQUE – Lawrence Lockwood, 32, a member and resident of Laguna Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a misdemeanor assault charge.
Lockwood was arrested on Feb. 11, 2015, on a criminal complaint alleging that Lockwood assaulted his intimate partner on Jan. 5, 2015, during a domestic dispute by shoving her onto a bed and restricting her movement.
During today’s proceedings, Lockwood pled guilty to a misdemeanor information charging him with simple assault. In entering his guilty plea, Lockwood admitted that on Jan. 5, 2015, he forcefully pushed the victim at a location within the Pueblo of Laguna in Cibola County, N.M.
This case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department and is being prosecuted by Assistant U.S. Attorneys Novaline Wilson and David Adams.
It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Killeen Area Man Gets 30 Years for Sex Trafficking of A MinorRead the Press Release
HOUSTON – Bobby Barrett, aka “Black,” 31, has been ordered to federal prison following his convictions of sex trafficking of a minor who was under 18 with force, fraud or coercion, and transporting her across state lines for the purpose of engaging in prostitution, announced U.S. Attorney Kenneth Magidson. The federal jury convicted the Killeen man after a four-day trial and less than two hours of deliberation on July 17, 2014.
Today, U.S. District Judge Keith P. Ellison, who presided over the trial, handed Barrett 360 months for the sex trafficking and 360 months for the transportation convictions, respectfully. The sentences will be served concurrently for a total of 30 years in federal prison. He was further ordered to serve 10 years on supervised release following completion of the prison term and must also register as a sex offender.
The federal charges brought against Barrett were the result of an investigation conducted by the Houston Innocence Lost Task Force, led by the FBI and the Shreveport, La., Police Department (SPD). The investigation began in October 2013 after the victim was detained during an enforcement operation in Houston. Barrett bonded her out and then transported her across state lines to Louisiana where ads for prostitution services were posted. SPD arrested her in another operation less than two weeks later along with Barrett and another woman.Testimony at trial revealed Barrett posted no less than 26 Internet prostitution ads from his phone. Barrett rented hotel rooms for the prostitution dates and supplied the victim and another woman with marijuana. The victim, a 17-year-old minor, testified she was the person depicted in seductive settings for the purpose of some of the advertisements for prostitution posted online. She said that at the time of the incidents, Barrett not only knew she was 17, but her High School identification was found in his pocket. Moreover, the minor testified she feared Barrett and that he cut her face during an altercation just prior to his arrest.
In addition to the victim’s description, an expert further testified as to how this subculture operates. Barrett took all monies the minor victim earned.
Forensic analysis of Barrett’s cell phone conducted by the FBI revealed pictures of multiple victims that were used in Backpage ads posted on the Internet. Phone records also confirmed that Barrett posted multiple ads on Backpage, including at least two minors under the age of 18. Hotel records verified that Barrett traveled out of state with the victims.
Barrett was found guilty of one count each of sex trafficking of a minor and transportation of a minor with intent to engage in criminal sexual activity. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant U.S. Attorneys Julie N. Searle and Sherri L. Zack, 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."
Justice Department Sues San Francisco Enrolled Agent to Bar Promotion of Abusive Tax Avoidance Schemes and from Preparing Tax Returns for OthersRead the Press Release
The United States filed a complaint to bar a San Francisco enrolled agent and tax return preparer from implementing, facilitating and promoting allegedly abusive tax shelters and tax avoidance schemes, the Justice Department announced today.
According to the complaint, which was filed in the U.S. District Court for the Northern District of California, one of the abusive tax avoidance schemes that Timothy Conn Vu promoted was a scheme that illegally avoided corporate income taxes on gains received from the sale of corporate assets, a so-called intermediary transaction tax shelter. Additionally, Vu promoted a scheme that illegally avoided taxes on the gains from selling transferrable state tax credits (the State Tax Credit tax shelter), which real estate project owners typically sell to raise money to develop real estate projects, according to the suit.
According to the complaint, in many instances Vu served as the sole officer, director and/or manager of the five companies that were used to carry out these schemes and he signed many of the documents on behalf of those companies.
In one version of the intermediary transaction described in the complaint, a company that Vu managed allegedly bought all of the stock of a closely held corporation shortly after that corporation had sold its assets to a third party. The asset sale generated capital gains tax. The complaint alleges that, once it owned the stock, the company that Vu managed allegedly offset the tax liability from the asset sale using a purported bad debt deduction based on bogus losses from a distressed asset debt (DAD) and/or distressed asset trust (DAT) tax shelter.
According to the suit, Vu, as an officer of the companies perpetrating these schemes, also signed and then filed with the Internal Revenue Service (IRS) many of the corporate income tax returns that claimed bogus losses to offset the income on which the corporations should have paid substantial federal taxes.
The complaint alleges that Vu’s participation in these abusive tax schemes has generated more than $515 million in bogus tax deductions that have led to federal income tax deficiencies of at least $129 million. For his role in the abusive transactions, Vu allegedly earned $3 million in compensation, according to the complaint. The lawsuit seeks to stop Vu from promoting these schemes in the future and to permanently bar him from preparing tax returns for others.
The promotion of tax schemes is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Sues Fort Worth, Texas, for Disability DiscriminationRead the Press Release
The Justice Department today filed a lawsuit against the city of Fort Worth, Texas, alleging violations of the Fair Housing Act and the Americans with Disabilities Act. The lawsuit, filed in U.S. District Court for the Northern District of Texas, charges that Fort Worth discriminated against persons with disabilities based on its treatment of a group home for persons recovering from drug and alcohol addiction, including the city’s failure to grant a reasonable accommodation to the owner of the group home.
The suit seeks a court order prohibiting future discrimination by Fort Worth and requiring Fort Worth to make a reasonable accommodation to permit the continued operation of “Ebby’s Place” as a group home for up to eight individuals with disabilities. It also seeks monetary damages to compensate victims, as well as payment of a civil penalty.
This lawsuit arose as a result of a complaint filed with the U.S. Department of Housing and Urban Development (HUD) by Ben Patterson, who through Ebby’s Place LLC, owns and operates the group home known as Ebby’s Place.
“The Fair Housing Act and the Americans with Disabilities Act seek to ensure that individuals with disabilities can live in communities of their choice without facing discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We will continue our vigorous enforcement efforts to make certain that persons with disabilities are granted their rights under federal law.”
“While we appreciate the City’s cooperation with this investigation, its refusal, as a governmental entity, to consider those recovering from drug or alcohol addiction as persons with disabilities is at odds with federal law,” said Acting U.S. Attorney John Parker of the Northern District of Texas. “Simply put, the residents of Ebby’s Place are deserving of the same protections as persons with any other disability.”
“Through our Office of Fair Housing and Equal Opportunity, HUD is working to ensure that housing options for persons with disabilities are not limited by restrictive zoning rules,” said Assistant Secretary Gustavo Velasquez of HUD’s Fair Housing and Equal Opportunity Office.
Fighting illegal housing discrimination is a top priority of the Justice Department. The Federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Title II of the Americans with Disabilities Act prohibits discrimination on the basis of disability by public entities. Visit www.usdoj.gov/crt for more information about the Civil Rights Division and the laws it enforces. Additional information about the Fair Housing Act is available at www.HUD.gov. Additional information about the Americans with Disabilities Act is available at www.ADA.gov.
Justice Department Returned over $4 Billion to Victims of Crime Through the Asset Forfeiture Program Between 2002 and 2015Read the Press Release
Marking National Crime Victims’ Rights Week this week, Attorney General Eric Holder and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced that the Justice Department’s Asset Forfeiture Program has returned more than $4 billion in civilly and criminally forfeited funds to crime victims since fiscal year 2002, with $723 million paid to over 150,000 crime victims in the last three years alone. The funds were distributed through the victim compensation program managed by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS).
“The Justice Department’s victim compensation program is an integral part of the asset forfeiture program and our efforts to take the profits out of crime, to restore assets to their rightful owners, and to provide real and meaningful justice to the victims of wrongdoing,” said Attorney General Holder. “The scale and scope of the returns made to victims under the program in recent years have been especially impressive. And going forward, as we continue our ongoing review of our asset forfeiture practices, we are committed to taking all appropriate measures to use this tool fairly, effectively, and with the greatest possible benefit to the American people.”
“The return of forfeited funds to crime victims is a priority of the civil and criminal forfeiture actions brought under the Asset Forfeiture Program,” said Assistant Attorney General Caldwell. “Success such as this would not be achievable without the efforts of prosecutors in the Criminal Division and U.S. Attorneys’ Offices around the country, as well as the many federal, state and local law enforcement agents contributing time and resources to these investigations. Make no mistake: forfeiture not only takes the money out of crime, but it’s among our most powerful tools to make victims whole.”
AFMLS partners with U.S. Attorneys’ Offices, federal law enforcement agencies, federal regulatory agencies, court-appointed receivers, private claim administrators, and private class action attorneys to return forfeited assets to crime victims.
Recent noteworthy cases in which victims were compensated for their losses with forfeited assets include:
$62.2 Million to Victims of MoneyGram Fraud
United States v. MoneyGram International Inc. (Middle District of Pennsylvania)
On Nov. 9, 2012, MoneyGram International Inc., a global money services business, entered into a deferred prosecution agreement (DPA) with the Justice Department. In doing so, MoneyGram admitted that corrupt MoneyGram agents across the country engaged in various consumer fraud schemes, including “grandparent” schemes in which a caller pretended to be the victim’s grandchild requesting money, and “advance fee” schemes requiring payment of fees to receive purported lottery winnings. These schemes resulted in victims sending over $100 million via MoneyGram to the criminals, and that amount was administratively forfeited as part of the DPA by the U.S. Postal Inspection Service. Over 22,000 victims who were fraudulently enticed to send money through corrupt agents have received a total of $62.2 million and been fully compensated for their losses.
$25.5 Million to Victims of Scott W. Rothstein
United States v. Scott W. Rothstein (Southern District of Florida)
From 2005 through 2009, attorney Scott W. Rothstein operated a massive Ponzi scheme through his now-defunct Fort Lauderdale law firm. Over 400 victims attempted to invest more than $1 billion in purported confidential civil settlement agreements upon Rothstein’s promise of substantial future payouts. In reality, the settlement agreements did not exist, but were part of an elaborate scam in which Rothstein either retained the funds or used them to pay earlier investors. Prosecutors forfeited more than $28 million in bank accounts, real property, vehicles, jewelry and investment accounts as proceeds of the fraud. Through a combination of the forfeiture proceeds, and other legal efforts, qualifying victims have received over $500 million in recoveries to date.
$14.6 Million to Victims of Allen Hilly
United States v. $7,599,358.09 (District of New Jersey)
In 2007, Allen Hilly was indicted on charges that he fraudulently obtained more than $18 million in federal tax and workers’ compensation withholdings. When Hilly died before his case could proceed to trial, prosecutors initiated civil forfeiture proceedings to pursue the fraud proceeds. As a result of the successful civil forfeiture, in 2014, over $14.6 million was returned to nine victims, including the Internal Revenue Service and the Illinois Department of Insurance, which paid out claims to injured employees who otherwise would not have received payments due to Hilly’s fraud.
$11.7 Million to the Centers for Medicare and Medicaid Services
United States v. One Helicopter and United States v. One Parcel (Southern District of Florida)
Brothers Luis, Carlos and Jose Benitez were indicted in May 2008 for their alleged involvement in a $110 million scheme to defraud Medicare through the use of 11 South Florida clinics they owned and operated. According to papers filed in court, the Benitez Brothers filed false claims and caused others to pay kickbacks to Medicare recipients who fraudulently claimed they received HIV infusion services at the clinics in order to obtain Medicare benefits in excess of $84 million. After being charged with health care fraud and money laundering, the brothers fled to Cuba and remain fugitives. The department filed three civil forfeiture actions that, to date, have resulted in the recovery of property, including a helicopter, hotel, a water park, 30 vehicles, a car rental agency, houses, condos, and apartments. Thus far, $11.7 million is available to return to Medicare as compensation for losses resulting from the fraud.
$10 Million to Victims of Traders International Return Network Fraud
United States v. David Merrick (Middle District of Florida)
Between 2008 and 2009, David Merrick operated a Panamanian-based corporation called Traders International Return Network (TIRN), which claimed to be a legitimate private investment club with offices located in Dubai, Kuala Lumpur, Malaysia and Switzerland. Court filings detail how Merrick created shell corporations, disseminated false monthly dividend reports, and recruited investors through a website and in person. Over 770 victims suffered $12 million in losses as a result of Merrick’s scheme. Approximately $10 million in forfeited funds have been returned to date to the victims.
$9.2 Million to the City of Dixon, Illinois
United States v. Rita A. Crundwell (Northern District of Illinois); United States v. Have Faith in Money, et al. (Northern District of Illinois)
For over 20 years, Rita Crundwell used her position as comptroller for the City of Dixon, Illinois to embezzle more than $53 million from the city. An investigation revealed that Crundwell used the embezzled funds to pay for numerous personal and business expenses, including the establishment of a large horse farming and showing operation. Crundwell was convicted of wire fraud and forfeited over 500 assets, including more than 300 horses and associated show items. The U.S. Marshals Service assumed responsibility for the care of the horses seized in 13 states, which included overseeing the births of more than 80 foals. Ultimately, liquidation of the forfeited assets generated $9.2 million, which has been paid to the City of Dixon.
$8.8 Million to Victims of Zaveri Oil and Gas Fraud
United States v. Ashvin Zaveri (Western District of New York)
Ashvin Zaveri was charged with orchestrating a Ponzi scheme that enticed investors to invest in sham oil and natural gas explorations in Tennessee and Kentucky. Due to his untimely death, the criminal case against Zaveri was dismissed. However, the U.S. Attorney’s Office commenced a civil forfeiture action against the proceeds of Zaveri’s life insurance policy. Approximately $8.8 million obtained through civil forfeiture was returned to more than 100 victims of the scheme.
$4.5 Million to Victims of Xybernaut Fraud
United States v. Zev Saltsman (Eastern District New York)
Xybernaut Corporation, headquartered in Northern Virginia, was a provider of wearable mobile computing hardware, software and services. In October 2007, Xybernaut’s founders were indicted for securities fraud and money laundering in connection with a kickback scheme. Hundreds of millions of Xybernaut shares were issued at below market prices to several purchasers in exchange for kickbacks paid to the founders. Approximately $4.5 million in assets forfeited from various defendants has been distributed to over 12,000 victims.
$4.5 Million to South Dakota Health Care Provider
United States v. Gerald Lloyd Larson (District of South Dakota)
Gerald Larson was convicted of embezzling funds from his employer, a South Dakota health care provider. During the course of his scheme, he embezzled almost $5 million. Shortly after his conviction in January 2015, the U.S. Attorney for the District of South Dakota requested a transfer of approximately $4.5 million in forfeited assets to the Clerk of Court to compensate the victim.
Priceless Artifact Returned to Harvard
United States v. One Qing Dynasty Jadeite Lobed Censer & Cover (District of Massachusetts)
In 1979, an 18th Century Qing Dynasty jade incense holder was stolen from the Harvard Art Museums. In 2009, the artifact resurfaced at a Hong Kong auction house, which ran a search in the Art Loss Register database and discovered that the jade censer being offered for sale matched the censer stolen from Harvard. The Art Loss Register then notified U.S. Immigration and Customs Enforcement officials of the censer’s reappearance. Thereafter, the U.S. Attorney’s Office commenced a civil forfeiture action and obtained a civil warrant to seize the artifact. After successful civil proceedings, the United States returned the stolen artifact to the Harvard Art Museums in January 2014, over 30 years after the original theft.
For additional information about the Department of Justice’s victim compensation program, please visit http://www.justice.gov/criminal/afmls/victims/.
Justice Department Reaches Agreement with Madison County, New York, to Make Government Documents AccessibleRead the Press Release
The Department of Justice today announced an agreement with Madison County, New York, to remedy accessibility issues that violate the Americans with Disabilities Act (ADA). This year marks the 25th anniversary of the ADA, which the Civil Rights Division plays a critical role in enforcing.
Madison County and the department reached an agreement under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the ADA. Under the agreement, Madison County is required to, among other things, ensure its communications with people with disabilities are as effective as its communications with people without disabilities. This includes making documents available in alternate accessible formats such as Braille, large print, recordings and accessible electronic format. Under the agreement, Madison County is also required to reasonably modify its policies, practices and procedures to ensure equal access to its programs, services and activities. County employees will also receive training on the requirements of the ADA and appropriate ways of serving people with disabilities.
“No one should be in fear of going hungry and or being unable to take their child to the doctor because their disability prevented them from applying for benefits for which they may be eligible,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Many people with disabilities are low-income and are eligible for public benefits. The ADA requires state and local governments to make their communications and services accessible to all people, including those with disabilities.”
The agreement with Madison County will provide people with disabilities with accessible documents they need to complete to receive benefits. Chris Rifendifer, who is legally blind, is one of the people who will benefit from this agreement. Rifendifer relies on Medicaid and food stamps to help take care of himself and his family. However, the county provided him with forms he could neither read nor complete in order to receive his benefits. When he asked county staff for help filling out the forms, Rifendifer was denied any assistance and told to ask someone else to do it for him.
Experiences like Rifendifer’s, however, will become a thing of the past over the next three years under the PCA agreement. Rifendifer shared his story on the Justice Department blog today, where each month of 2015, the department is highlighting how PCA agreements have an impact on the everyday lives of people with disabilities.
In addition to addressing the issues faced by Rifendifer, the settlement agreement entered into by the department and Madison County requires the county to comply with the ADA’s architectural accessibility requirements by remediating existing buildings, when it builds new buildings and when it alters its buildings. Additionally, it requires the county to publish and distribute ADA information, use the New York telephone relay service as a key means of communicating with individuals who are deaf, hard-of-hearing or have speech impairments, conduct ADA training and submit to monitoring of its compliance with the agreement by the department.
For more information about the ADA, today’s agreement, the PCA initiative, individuals may access the ADA web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Justice Department Asks Federal Court to Permanently Shut Down Liberty Tax Service Franchise OwnerRead the Press Release
The United States filed a complaint asking a federal court in Detroit to bar a Liberty Tax Service franchise owner and his companies based in Illinois and Michigan from preparing federal tax returns for others, the Justice Department announced today.
The civil complaint against Syed N. Ahmed and his businesses, Nasah Inc., Millinium [sic] Financial Solutions Inc., Mars Inc.-Hamtramck, and Mahad Inc., was filed in the U.S. District Court for the Eastern District of Michigan. The complaint alleges that Ahmed operates at least 10 Liberty Tax Service franchise locations.
According to the suit, the defendants improperly obtain inflated tax refunds and refundable credits for customers by preparing tax returns that include, among other things, false or inflated Schedule C (Profit or Loss From Business) income and expenses, bogus dependents, false filing statuses, improper education credits and false itemized deductions.
For example, the complaint alleges that one of defendants’ tax return preparers fabricated a driving business without the customer’s knowledge and reported thousands of dollars of expenses for that business that the customer did not incur. The false expenses enabled the customer to receive an earned income tax credit that she was not otherwise entitled to receive, according to the suit.
The lawsuit states that the defendants prepared more than 17,000 federal income tax returns between 2010 and 2013. Based on audit adjustments the Internal Revenue Service (IRS) has made to tax returns prepared and filed by the defendants between 2010 and 2013, the defendants’ conduct has cost the U.S. Treasury approximately $2.8 million, according to the suit.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Applauds Settlement to Improve Juvenile Right to Counsel in GeorgiaRead the Press Release
The Superior Court of Fulton County, Georgia, signed a consent decree today in N.P. et al. v. State of Georgia, et al., a class action suit asserting that the public defense system in the Cordele Judicial Circuit is so underfunded and poorly staffed that indigent adults and juveniles accused of committing criminal acts are routinely denied their right to legal representation. In March 2015, the Justice Department filed a statement of interest in the case, reaffirming the department’s commitment to enforcing the due process rights of children generally and, in particular, the need for children to consult with an attorney prior to waiving their Constitutional right to counsel. One month after the department’s filing, the parties, with the assistance of U.S. Attorney Michael Moore of the Middle District of Georgia, who served as mediator, resolved the case and submitted a joint consent decree to the court.
The proposed settlement, if implemented, would mark a major step forward in the safeguarding the right to counsel for both juveniles and adults. Specifically, the settlement would, among other things, require:
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the representation of children in juvenile court in the circuit to be by a lawyer who specializes in juvenile law and childhood and adolescent development;
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on notice from the court, a public defender from the juvenile division shall speak to any indigent juvenile who seeks to waive counsel and describe services of counsel available to the juvenile and the benefits of representation;
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all people, including children, arrested in the circuit and detained in its jails to consult with a lawyer in no more than three business days;
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the size of the Cordele Circuit Public Defender Office to nearly double, increasing from two full-time assistant public defenders to four, and from one full-time investigator to two; and
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significant and relevant training requirements for public defenders.
“This settlement recognizes that independent, ethical, and zealous counsel are essential to protecting the due process rights of juveniles,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Civil Rights Division will continue to ensure that juveniles across the nation are provided the vital protection of counsel.”
“I am pleased to have played some small part in bringing this matter to a resolution that will benefit the people of the Cordele Judicial Circuit for years to come,” said U.S. Attorney Moore. “As lawyers, all of us, including the named defendants in this case, understand the importance of providing representation to those who have been charged with a criminal or delinquent act. This agreement puts meat on the bones of that process, and guarantees that individuals who are facing criminal cases in the Cordele Circuit will not only have representation, but truly meaningful representation as they navigate the judicial system. This resolution is good for the accused, it is good for the court system, and it is good for the people of the state of Georgia. I want to thank my friends, Attorney General Sam Olens and Solicitor General Britt Grant, for helping all involved reach a consensus in this matter, and I want to acknowledge the courageous filing on behalf of the plaintiffs that brought this to our attention by Steve Bright.”
“We congratulate the parties on coming together and taking the steps necessary to improve justice for both adults and juveniles in the Cordele Judicial Circuit,” said Director Lisa Foster of the Office for Access to Justice. “The agreement upholds the core principles of the Sixth and Fourteenth Amendments and represents a model for the rest of Georgia and for the country.”
In N.P., the plaintiffs alleged that the public defense system in the Cordele Judicial Circuit had been so underfunded and poorly staffed that indigent adults and juveniles accused of committing criminal acts were routinely denied their right to legal representation. In its statement of interest, the department focused solely on the due process rights of children accused of delinquency. The department applied In re Gault and other case law to identify procedural safeguards that must be provided to children who appear before the court. The Civil Rights Division has worked to expand access to counsel in juvenile delinquency proceedings. For example, the division is currently enforcing an agreement in Shelby County (Memphis), Tennessee, that, among other remedies, requires the county and the local juvenile court to develop and support a juvenile public defense system. The division is also engaged in a federal suit against the City of Meridian, Lauderdale County, Mississippi, two youth court judges in Lauderdale County, and the state of Mississippi, alleging that they are violating the due process rights of juveniles in Meridian who are referred for law enforcement action by public schools.
In its statement of interest, the department asserted that children are denied their right to counsel not only when an attorney is entirely absent, but also when an attorney is available in name only. It provided the court with a framework to assess the plaintiffs’ claim that the defendants are depriving young people accused of delinquency of their right to counsel. As the department summarized in the statement of interest, “due process requires that every child who faces the loss of liberty should be represented from their first appearance through, at least, the disposition of their case by an attorney with the training, resources and time to effectively advocate the child’s interest. If a child decides to waive the right to an attorney, courts must ensure that the waiver is knowing, intelligent, and voluntary by requiring consultation with counsel before the court accepts the waiver.”
The case was filed in 2014 and brought by indigent adults and juveniles who faced criminal and delinquency charges in the Cordele Judicial Circuit.
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Jury Convicts Blind Defendant of RobberyRead the Press Release
PHILADELPHIA – A federal jury today convicted Mark Sanders, 23, of Philadelphia, PA, in a motorcycle robbery that rendered the defendant blind. On June 26, 2011, Sanders and two other men responded to a Craigslist ad for a dirt bike for sale. Sanders and a co-conspirator met the seller at an agreed-upon location on Green Street in Philadelphia. The co-conspirator purported to inspect the dirt bike, asking the seller to start the bike and rev the engine. He then told Sanders to pay for the motorcycle but Sanders, instead, pulled a firearm from his waistband, pointed it at the seller and his companions and ordered them to get on the ground. Sanders’ conspirator commandeered the dirt bike and took off. A relative of the seller’s was at home, across the street, saw the robbery happening, and took his own, legally-owned, handgun to the scene. When Sanders would not respond to the relative’s order to stop and, instead, turned to point his gun at the seller’s relative, the seller’s relative fired his weapon, shooting Sanders in the temple rendering him blind.
The jury deliberated for two hours before finding Sanders guilty of conspiracy to commit robbery of a motor vehicle, robbery of a motor vehicle, using and carrying a firearm during a crime of violence, and possession of a firearm by a convicted felon.
U.S. District Court Judge Juan R. Sanchez has not yet scheduled a sentencing hearing. Sanders faces a potential maximum sentence of life in prison with a mandatory sentence of five years.
The case was investigated by the FBI and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorneys Arlene Fisk and Eric Boden.
Joplin Man Sentenced to 12 Years for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
David Michel McCowan, 26, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years and seven months in federal prison without parole, which is the longest sentence recommended under the federal sentencing guidelines. The court also ordered McCowan to serve a lifetime of supervised release following incarceration.
On Oct. 9, 2014, McCowan pleaded guilty to receiving and distributing child pornography over the Internet.
According to court documents, an officer with the Southwest Missouri Cyber Crimes Task Force identified McCowan’s computer as utilizing a peer-to-peer file-sharing program to download and share child pornography over the Internet. Officers executed a search a warrant and seized McCowan’s computer, which contained images of child pornography.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Southwest Missouri Cyber Crimes Task Force and the Missouri State Highway Patrol.
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."
Johnstown Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distribution of cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
Willie Gene Gulley, Jr., 46, of Johnstown, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Aug. 18, 2014, Gulley distributed less than 28 grams of cocaine base.
Judge Gibson scheduled sentencing for Sept. 4, 2015, at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Gulley.
Jicarilla Apache Man Sentenced for Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Terrance Julian, 30, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., was sentenced today in federal court in Albuquerque, N.M., to 18 months in federal prison followed by three years of supervised release for his federal assault conviction.
Julian was arrested on Aug. 21, 2014, on an indictment alleging that on Oct. 14, 2012, he assaulted a woman with a dangerous weapon, and brandished a firearm in relation to a crime of violence. The indictment alleged that Julian committed the crimes on the Jicarilla Apache Reservation in Rio Arriba County, N.M.
On Nov. 26, 2014, Julian pled guilty to Count 1 of the indictment charging him with assault with a dangerous weapon. In entering his guilty plea, Julian admitted assaulting his intimate partner, a Jicarilla Apache woman, by striking her with a rifle.
This case was investigated by the Jicarilla Apache Tribal Police Department and was prosecuted by Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Jacksonville Man Sentenced to More Than 17 Years in Federal Prison for Advertising Child PornographyRead the Press Release
Jacksonville, Florida – Senior United States District Judge Harvey E. Schlesinger has sentenced James Patrick Foreman (44, Jacksonville) to 17 years and 6 months in federal prison for advertising child pornography. Foreman was also ordered to serve a 15-year term of supervision, and to register as sex offender following his release. He pleaded guilty on December 16, 2014, and has been detained since his arrest in October 2014.
According to court documents, an FBI agent began an undercover investigation to identify individuals in northeast Florida who had access to and/or were trading images and videos depicting child pornography over the Internet. The agent determined that a computer in that area was hosting and trading images of child pornography using a peer-to-peer file sharing program. The subscriber information for this computer was traced to Foreman’s residence in Jacksonville.
On October 1, 2014, a federal search warrant was executed at Foreman’s residence. When interviewed, Foreman admitted that he had downloaded child pornography involving children of all ages, and had seen "1, 2, and 3-year-old" child pornography. He also admitted to exchanging passwords with other users, advising others as to the type of material that he was looking for, and allowing other users to browse his collection of child pornography.
Forensic analyses of Foreman’s computer revealed that it contained at least 500 videos and 1,500 images depicting child pornography, including a video depicting a toddler being sexually assaulted. Logs of online conversations between Foreman and others discussing exchanges of child pornography were also found during the search.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jacksonville Man Charged in $2.1 Million Fraud SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Andrew A. Rooks (58, Jacksonville) with two separate conspiracies to commit mail fraud and wire fraud, and ten counts of wire fraud. He faces a maximum penalty of 20 years in federal prison on each count. The indictment also notifies Rooks that the United States is seeking a money judgment in the amount of approximately $2.1 million, which represents the proceeds of the fraud.
Rooks was arrested and made his initial appearance in federal court today. He was released on bond and an arraignment has been scheduled for Monday, April 27, 2015.
According to the indictment, from 2001 until July 2011, Rooks worked for Sea Star Line, LLC, in its Jacksonville office. Sea Star transports goods by vessel in interstate and foreign commerce and has operations at the Port of Jacksonville. Rooks last served as the assistant vice president of operations. The indictment alleges that, beginning no later than November 2005, Rooks authorized the payment of phony invoices submitted on behalf of co-conspirator Keith Beavers. The invoices were for container and equipment decals that were never provided to Sea Star. The indictment further alleges that, beginning around the same time, Rooks carried on a second conspiracy. He allegedly authorized the payment of phony invoices to two companies controlled by Russell Cody. The invoices were for inspection and transportation services of Sea Star’s containers and equipment. They were false because those services were never provided by Tiburon Transportation Services or Lancer Logistics, which were the front companies controlled by Cody. Instead, the indictment alleges that Beavers and Cody made kickback payments to Rooks, and to a company controlled by Rooks. The payments were approximately 40 to 60 percent of the amount paid by Sea Star on the phony invoices.
The indictment also alleges that after Rooks was terminated by Sea Star, he got a job with another Jacksonville company, Trailer Bridge, Inc., and continued the conspiracies. Trailer Bridge paid $107,000 as a result of phony invoices.
In separate cases, Beavers and Cody previously pleaded guilty for their roles in the conspiracies, and are currently awaiting sentencing. The sentencing hearings are scheduled in July 2015.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville office of the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Dale Campion.