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8 April 2015
Man Sentenced for Distribution of Child PornographyRead the Press Release
ALBANY, NEW YORK – James J. McGonigle, age 42, of Troy, was sentenced today in Albany before United States District Judge Mae A. D’Agostino on distribution and possession of child pornography, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola. McGonigle was sentenced to 120 months on Distribution of Child Pornography and 120 months on Possession of Child Pornography, to run concurrently, for a total sentence of 10 years. The sentence included 15 years of supervised release upon release from prison and a $200 special assessment fee.
As part of his guilty plea, McGonigle admitted that he distributed videos of child pornography by e-mail. On March 5, 2014, investigators executed a federal search warrant at McGonigle’s residence in Troy, New York, and recovered 364 still images and 50 videos depicting child pornography from his smartphone.
"Child pornography consists of photographic images of minors, even infants, being sexually harmed, humiliated and scarred for life. Sentences for defendants who view and share such images must serve as both a deterrent and a warning that such behavior is wrong and will not be tolerated," said United States Attorney Richard S. Hartunian.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Man Pleads Guilty to Unlawful Mailing of FirearmRead the Press Release
St. Croix, USVI – Vonne Bailey, 24, of St. Croix, pleaded guilty Tuesday, April 7, 2015 in District Court on St. Croix to one count of Unlawful Mailing of a Firearm, United States Attorney Ronald W. Sharpe announced.
As part of his plea, Bailey admitted that on May 26, 2014, United States Customs and Border Protection (CBP) intercepted a package, shipped from outside the Virgin Islands, containing a Springfield Armory .40 caliber pistol, a magazine, and a Smith and Wesson AR-15 lower receiver with an obliterated serial number. Federal agents traced the delivery to Bailey’s residence. Bailey admitted that he was responsible for and owned the package.
Bailey is facing a maximum sentence of two years in prison, and a $250,000 fine. Sentencing is scheduled for August 6, 2015.
The case was investigated by the Department of Homeland Security Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorneys Rhonda Williams-Henry and Rami Badawy.
Local Tax Preparer Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – The owner and operator of Discount Tax Service was sentenced to one year and one day in prison on charges of filing false tax returns. According to court documents, CHRISTOPHER MICKLES prepared over seven hundred and fifty federal income tax returns on behalf of his clients for tax years 2008 through 2011. Many of those returns contained falsely claimed fraudulent items and credits, such as household help income and earned income tax credits. In addition to the prison sentence, Mickles was ordered to pay restitution of $131,219.
"Criminal Investigation wants to make sure taxpayers do not pay good money for bad advice," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office. "Tax return preparers have a duty to their clients to prepare tax returns that comply with the law and are accurate."
Christopher Mickles, St. Louis, Missouri, pled guilty last October to four felony counts of aiding and abetting in the preparation of false tax returns. He appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney's Office.
Local Businessman Handed Maximum Sentence for Transporting A Female Employee for Criminal Sexual ConductRead the Press Release
HOUSTON - Henri De Sola Morris, 68, former president and chief executive officer of Solid Software Solutions LLC, which does business as Edible Software Inc., has been sentenced in federal court, announced U.S. Attorney Kenneth Magidson. Morris had just began trial in early December 2014 when he elected to enter a guilty plea to transportation.
Today, U.S. District Judge Melinda Harmon handed Morris the maximum sentence of 120 months in federal prison. Following completion of his prison term, he will also be on supervised release for the rest of his life. At the hearing, Morris read a statement to the court. After listening to the defendant, Judge Harmon noted that she did not believe he had accepted responsibility for his actions.
A letter prepared by the victim in the case was also read in court. In it, she talked about the pain Morris has caused. She stated that she did not expect him to feel sorry for what he did, noting that she did not think he had the capacity for that, but hoped he would eventually take some accountability for his actions. “It is my hope that the other women will see today as a win for all of us,” she said. “Because of their courage and tenacity the public is safe from you. God knows the things you have done and he will be your ultimate judge. I will walk away today free of you and your evil, because I know I am strong enough to continue to fight for the truth.”
Morris, a naturalized U.S. citizen residing in Houston, admitted that on or about May 8, 2011, he traveled in interstate commerce and committed, and attempted to commit, the drug-facilitated sexual assault of a female employee.
According to opening statements presented by the prosecution at trial, several women relayed similar experiences of being in compromising situations with Morris after he provided each woman with a drugged alcoholic beverage he had prepared. Each woman reported instances of memory loss that followed the encounter consistent with being administered drugs. The women also reported unwanted contact with Morris, according to the opening remarks. The women all worked for Morris at one time and had taken business trips with him at his request to various states, including New York, New Jersey and Pennsylvania. Some of those women were also present in court today.
The plea agreement indicates that on one of those trips, Morris gave a female employee an alcoholic drink which he had drugged with Ambien. She recalled the drink being extremely strong and soon feeling inexplicitly “very intoxicated.” The victim recalled having their picture taken in a restaurant, but then nothing until awakening the next morning on her bed in her hotel room. At that time, she saw Morris standing over her naked body and taking pictures with his cell phone. She also had scratches on each of her hips and bruises on her arm. During a later conversation with the victim, Morris admitted he was “lonely.”
The photos Morris had taken of the woman were later recovered on a thumb drive found in his possession during the execution of a search warrant at Bush Intercontinental Airport (IAH) on Feb. 27, 2012. Also discovered at that time were three Jack Daniel’s bottles containing a clear liquid inconsistent with the appearance of whiskey. The search also resulted in the discovery of drugs, some of which were later identified as benzodiazipams, that a toxicologist has indicated can cause physical impairment and memory loss especially when mixed with alcohol as well as several tablets of the erectile dysfunction drugs commercially-known as Viagra and Cialis.
The Society of Forensic Toxicologists (SFT) defines drug-facilitated sexual assault (DFSA) as “when a person is subjected to nonconsensual sexual acts while they are incapacitated or unconscious due to the effect(s) of ethanol, a drug and/or other intoxicating substance and are therefore prevented from resisting and/or unable to consent.” Typical symptoms of DFSA are drowsiness, dizziness, loss of muscle control, slurred speech, decreased inhibitions, memory loss or impairment, loss of consciousness and vomiting. The SFT compiled a list of drugs, in addition to ethanol, as known to have been associated with DFSA. The drugs found on Morris at IAH are all on that list.
Morris, who was previously on bond but later detained after violating his conditions of release, will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the FBI – Houston Division Violent Crime Task Force, comprised of agents and officers from the FBI, Houston Police Department and the Harris County Sheriff’s Office, with the assistance of the Drug Enforcement Administration laboratory in Dallas and the FBI laboratory in Quantico, Va. Assistant U.S. Attorneys Sherri Zack and Suzanne Elmilady are prosecuting the case.
Leader of Sex Trafficking Ring Pleads GuiltyRead the Press Release
The leader of a sex trafficking ring pleaded guilty today to charges stemming from his interstate prostitution enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division.
Jeremie J. Tate, 33, of Zachary, Louisiana, pleaded guilty this morning before U.S. District Judge Shelly D. Dick of the Middle District of Louisiana to conspiracy to unlawfully use interstate facilities in aid of racketeering, two counts of use of interstate facilities in aid of racketeering and enticing another to travel interstate for prostitution. After evading arrest for several days, Tate was apprehended in Houston, Texas, on April 25, 2014, by the U.S. Marshals Service Fugitive Task Force and the FBI’s New Orleans Division. Tate has remained in federal custody since his arrest.
According to the plea agreement filed in the case, from November 2012 through November 2013, Tate operated a prostitution business based in Baton Rouge involving multiple prostitutes, including a minor. Tate and others, used telephones and the Internet to arrange online advertising, schedule prostitution sessions and recruit other prostitutes. Tate admitted that he took most of the proceeds from the prostitution business and distributed controlled substances to his prostitutes and others to manipulate and intimidate them. In his plea agreement, Tate specifically admitted that he enticed a prostitute to travel from Baton Rouge to Las Vegas in December 2012 to engage in prostitution for him.
Three other individuals have already pleaded guilty and are awaiting sentencing for their roles in this sex trafficking ring.
The case is being investigated by the FBI’s New Orleans Division, Louisiana Attorney General’s Office, Louisiana State Police and East Baton Rouge, Louisiana, Sheriff’s Office, with assistance from the Baton Rouge, Louisiana, Police Department’s Narcotics Division, U.S. Marshals Service Fugitive Task Force and other law enforcement agencies. The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Leader of Sex Trafficking Ring Pleads GuiltyRead the Press Release
WASHINGTON – The leader of a sex trafficking ring pled guilty today to charges stemming from his interstate prostitution enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana, and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division.
Jeremie J. Tate, 33, of Zachary, Louisiana, pled guilty before U.S. District Judge Shelly D. Dick of the Middle District of Louisiana to conspiracy to unlawfully use interstate facilities in aid of racketeering, two counts of use of interstate facilities in aid of racketeering, and enticing another to travel interstate for prostitution. After evading arrest for several days, Tate was apprehended in Houston, Texas, on April 25, 2014, by the U.S. Marshals Service Fugitive Task Force and the FBI’s New Orleans Division. Tate has remained in federal custody since his arrest.
According to the plea agreement filed in the case, from November 2012 through November 2013, Tate operated a prostitution business based in Baton Rouge involving multiple prostitutes, including a minor. Tate and others, used telephones and the Internet to arrange online advertising, schedule prostitution sessions, and recruit other prostitutes. Tate admitted that he took most of the proceeds from the prostitution business and distributed controlled substances to his prostitutes and others to manipulate and intimidate them. In his plea agreement, Tate specifically admitted that he enticed a prostitute to travel from Baton Rouge to Las Vegas in December 2012 to engage in prostitution for him.
Three other individuals have already pled guilty and are awaiting sentencing for their roles in this sex trafficking ring.
United States Attorney Walt Green stated: “Persons preying on vulnerable victims for their own selfish gain is a truly despicable act. We will continue to prioritize these types of cases to prevent others from committing similar crimes and to rescue the victims.”
The case is being investigated by the FBI’s New Orleans Division, Louisiana Attorney General’s Office, Louisiana State Police, and East Baton Rouge Parish Sheriff’s Office, with assistance from the Baton Rouge, Louisiana, Police Department’s Narcotics Division, U.S. Marshals Service Fugitive Task Force and other law enforcement agencies. The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Kingsville Man Pleads Guilty to Failing to Pay $750,000 in TaxesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of a Grandview, Mo., business that provided residential treatment for children while in state custody pleaded guilty in federal court today to failing to pay both the payroll taxes he collected from his employees and his personal income taxes, resulting in a total tax loss of more than $750,000.
Jason Rudolph, 47, of Kingsville, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Beth Phillips to failure to pay over withholding taxes and willfully failing to file federal income tax returns.
Rudolph owned and operated Jay’s Residential, which provided residential psychiatric care for children at several locations in Grandview.
By pleading guilty today, Rudolph admitted that he did not deposit the employees’ Federal Insurance Contributions Act and Medicare (“FICA”) taxes and income taxes that he withheld from his employees’ wages and did not pay the employer portion of FICA. Instead, Rudolph used the money to gamble, pay personal bills, and purchase vehicles. In addition to failing to pay over his employment taxes, Rudolph admitted he did not file personal income tax returns for the tax years 2008 through 2011.
The total tax harm from Rudolph’s criminal conduct is $755,643. Rudolph admitted that he failed to pay over $149,944 in employee payroll taxes and $344,902 in personal income taxes, for a tax loss of $494,845. The tax loss increases to $570,491 after including the employer portion of FICA, and to $755,643 including earlier employment tax periods and the employment tax owed to the state of Missouri.
While having substantial employment taxes due, according to today’s plea agreement, Rudolph frequently went to casinos and paid personal expenses with Jay’s Residential’s funds. An analysis of bank records and records obtained from Ameristar Casino reveal that Rudolph withdrew more than $1.1 million from Jay’s Residential’s bank account at the casino from 2008 to 2011.
Although Rudolph failed to file his personal federal individual income tax return for the tax years 2008 through 2011, the plea agreement says, his wife filed her personal federal individual income tax return using the filing status of married and filing separately.
Under federal statutes, Rudolph is subject to a sentence of up to six years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
KC Man, Six Columbia Residents Sentenced for Cocaine ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man and six Columbia, Mo., residents have been sentenced in federal court for their roles in a conspiracy to distribute cocaine in Boone County, Mo., and elsewhere.
Yun Yi Chang, 37, and Ricardo Lawrence Harrell, 36, both of Columbia, were sentenced today by U.S. District Judge Brian C. Wimes. Chang was sentenced to 13 years in federal prison without parole. Harrell was sentenced to four years in federal prison without parole.
Samuel Raphael Johnson, 37, of Kansas City, was sentenced on Tuesday, April 7, 2015, to 15 years in federal prison without parole.
Johnson, Chang and Harrell have all pleaded guilty to participating in a conspiracy to distribute cocaine in Boone County and elsewhere from July 2008 until 2012. Johnson admitted that he sold multiple kilograms of cocaine to co-defendant Levi McLean Franklin Coolley, 36, of Columbia, for $20,000 per kilogram. Coolley, who has pleaded guilty and awaits sentencing, used other conspirators (including Chang) to pick up the cocaine from Johnson in Kansas City and deliver it to Columbia, where it was distributed.
Chang admitted that he and Coolley were responsible for bringing more than 20 kilograms of cocaine to Columbia. Chang also admitted that, for approximately six months preceding his March 2012 arrest, he purchased an average of two ounces of cocaine every two weeks from Harrell for $1,100 per ounce.
At approximately 2:40 a.m. on Nov. 8, 2011, officers of the Kansas City, Mo., Police Department were dispatched on an alarm call to Johnson’s residence, where they discovered evidence of a break-in. When they searched Johnson’s residence, they found 72.42 grams of cocaine, 75.47 grams of crack cocaine and 18.66 kilograms of marijuana.
During the time of the conspiracy, and due to his direct involvement in the agreement to distribute cocaine and his knowing participation and knowledge of the extent of the distribution network, Johnson acknowledge that he was responsible for the distribution of more than five kilograms of cocaine.
Co-defendants Jessica Lynn Jobe, 32, George Dale Wolchko, 33, and Patrick Jeremy O’Blennis, 35, all of Columbia, were also sentenced yesterday after pleading guilty to their roles in the cocaine-trafficking conspiracy. Jobe was sentenced to three years and three months in federal prison without parole. Wolchko was sentenced to three years in federal prison without parole. O’Blennis was sentenced to 13 months in federal prison. Co-defendant Justin Ashley Blackburn, 33, of Columbia, was also sentenced yesterday to eight months in prison after pleading guilty to his role in a separate conspiracy to distribute marijuana.
Co-defendants Russell Preston Browns, 33, Sara Jean Patrick Browns, 28, Travis Keith Rudloff, 38, Art Waylon Gill, 36, Michael Wayne Crossno, 40, Russell Scott Kuda, 41, Nicholas Robert Berberich, 34, and Lance Michael Walbrecht, 36, all of Columbia, already have been sentenced.
Three co-defendants have pleaded guilty and await sentencing: Coolley, Eric Paxton Pyle, 36, and Jonathan Richard Gray, 36, all of Columbia.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, the Drug Enforcement Administration, IRS-Criminal Investigation, the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department and the Kansas City, Mo., Police Department.
KC Man Pleads Guilty to Illegal Gambling OperationRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to operating an illegal gambling business that generated nearly $4 million in bets placed during its final year of operation.
Hoang Pham, 49, of Kansas City, pleaded guilty before U.S. District Judge Fernando J. Gaitan to conducting an illegal gambling business and participating in a money laundering conspiracy.
By pleading guilty today, Pham admitted that he operated an illegal gambling business from at least 2008 to February 2012. Pham used Costa Rican Web sites to run his bookmaking operation. The gross revenue of Pham’s illegal gambling business exceeded $2,000 per day on multiple days during the operation of the business. Evidence obtained during the course of the investigation indicated that, in approximately a one-year period from Jan. 1, 2011, to Feb. 9, 2012, bets totaling $3,788,635 were placed in Hoang Pham’s operation.
Pham settled up with his bettors on a weekly basis and, typically, the transfer of funds would be in cash. Pham and his partners conspired to use a number of bank accounts and businesses to conduct financial transactions designed to conceal the nature, location, source, ownership and control of the proceeds of the illegal gambling operation and to engage in financial transactions that involved the proceeds of the illegal gambling business. These accounts included their personal bank accounts and their business accounts.
In a separate civil proceeding, Pham has forfeited to the government $56,437, which represents the proceeds of his illegal conduct and was seized by law enforcement officers during the execution of a search warrant.
Under federal statutes, Pham is subject to a sentence of up to 25 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the FBI and IRS-Criminal Investigation.
Jefferson City Man Sentenced for Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for illegally possessing firearms.
Terrence Lamar Hawkins, 46, of Jefferson City, was sentenced by U.S. District Judge Brian C. Wimes to five years in federal prison without parole.
On Nov. 4, 2014, Hawkins was convicted at trial of two counts of being a felon in possession of a firearm.
Hawkins was found guilty of possessing a Hi-Point .40-caliber semi-automatic pistol on Feb. 24, 2011. Hawkins was also found guilty of possessing a Hi-Point 9mm semi-automatic pistol on March 24, 2011. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hawkins has a prior felony conviction for unlawful use of a weapon in Cole County, Mo.
Evidence introduced during the trial indicated that Hawkins was arrested twice by the Lincoln University Police Department at the Lincoln University Scruggs Student Center cafeteria in Jefferson City. At the time of both arrests, Scruggs was carrying a concealed handgun.
On Feb. 24, 2011, Hawkins, who appeared to be intoxicated, was confronted by police officers in the student center cafeteria. Officers noticed a bulge in his front, left pocket. When questioned about the bulge, Hawkins stated that it was nothing. When informed that officers were going to check his pockets, Hawkins attempted to flee and was detained by officers. Officers recovered a loaded Hi-Point .40-caliber pistol from Hawkins. Hawkins was then arrested and warned that he would be arrested for trespassing if he returned to Lincoln University.
On March 24, 2011, officers were dispatched to the Scruggs Student Center after a report that Hawkins was present, in violation of the trespass order. Hawkins was subsequently arrested for trespassing. During a search, a loaded Hi-Point 9mm pistol was found in his pants pocket.
This case was prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Lincoln University Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson City, Mo., Police Department, the Missouri State Highway Patrol and the Cole County, Mo., Sheriff’s Department.
Indictment Returned Against Houston Police Officer and Mexican CitizenRead the Press Release
U.S. Attorney Kenneth A. Polite announced the return of a Superseding Indictment charging Houston Police Officer NOE JUAREZ, 46, and Mexican citizen SERGIO GRIMALDO, 32, with conspiracy to distribute five kilograms or more of cocaine hydrochloride. JUAREZ is additionally charged with conspiracy to possess firearms in furtherance of a drug trafficking offense. The Superseding Indictment was returned on April 2, 2015 and recently unsealed. This Superseding Indictment is a product of an ongoing investigation. Both defendants are presently in custody.
If convicted of conspiracy to distribute cocaine, each defendant faces a sentence of ten years to life imprisonment, followed by a minimum of five years of supervised release, and a $10,000,000 fine. If convicted of conspiracy to possess a firearm in furtherance of drug trafficking, JUAREZ faces a maximum of twenty years imprisonment, followed by a maximum of three years of supervised release, and a $250,000 fine.
U.S. Attorney Polite reiterated that an indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration (“DEA”) offices in New Orleans and Houston, the Federal Bureau of Investigation (“FBI”) in Houston, and the Houston Police Department Internal Affairs Division in investigating this matter and thanked the U.S. Attorney’s Office for the Southern District of Texas for their assistance. Assistant United States Attorney John F. Murphy is in charge of the prosecution.
Superseding Indictment - Noe Juarez and Sergio Grimaldo
Indictment Charges Florida Man with Passport FraudRead the Press Release
ASHEVILLE, N.C. – Jose Salvador Lantigua, 62, of Jacksonville, Florida, has been charged with passport fraud and aggravated identity theft, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. His wife, Daphne Sylvia Simpson, 57, of Sapphire, N.C., has also been charged with one count of making false statements to a federal agent in connection with the case.
Scott Moretti, Special Agent in Charge of the Washington Field Office, U.S. Department of State, Diplomatic Security Service; B.W. Collier, Acting Director of the North Carolina State Bureau of Investigation (NC SBI); Steven M. Watkins, Director of the North Carolina Division of Motor Vehicles License and Theft Bureau (NC DMV L&T); Sheriff Chip Hall of the Jackson County Sheriff’s Office; and Chief Phil Harris, of the Brevard Police Department join Acting U.S. Attorney Rose in making todays’ announcement.
According to allegations contained in the federal indictment, on or about November 18, 2014, Lantigua lied on his application for a U.S. passport, falsely representing that his name was “Ernest Allen Wills.” According to court records, to support his passport application, Lantigua allegedly provided a birth certificate in the name “Ernest Allen Wills,” and, as proof of identity, Lantigua allegedly used a fraudulently-obtained North Carolina license issued in the victim’s name but bearing Lantigua’s photo. Court records show that Lantigua is the subject of an ongoing investigation in Florida, for allegedly faking his own death to fraudulently obtain life insurance money. The indictment charges Lantigua with one count of knowingly making a false statement on a passport and one count of aggravated identity theft. Law enforcement arrested Lantigua in Brevard, N.C., on March 21, 2015, and he remains in federal custody.
Lantigua’s wife, Daphne Simpson, has also been charged with one count of making a false statement to law enforcement. According to allegations contained in the indictment, Simpson lied when she told a special agent that the man who was with her at the time was “Ernest Wills” who was her “friend,” when Simpson knew that the man was actually her husband, Lantigua. Simpson was arrested in Florida on March 21, 2015, by the Florida Division of Insurance Fraud and currently remains in state custody. Simpson is facing insurance fraud and related state charges for filing fraudulent insurance claims and receiving a $500,000 payout from one of Lantigua’s life insurance policies. The federal court in Asheville will schedule Simpson’s initial appearance on the federal charges in the coming days.
If convicted of the offenses, Lantigua faces a maximum of 10 years in prison and a $250,000 fine for the passport fraud charge. The aggravated identity theft charge carries a minimum mandatory sentence of two years to be served consecutively with any other sentence imposed. Simpson faces a maximum of five years in prison and a $250,000 fine for the false statement charge.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being handled by the U.S. Department of State’s Diplomatic Security Service, assisted by NC-SBI, NCDMV&T, Jackson Co. Sheriff’s Office and Brevard PD.Assistant U.S. Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, is prosecuting the case.
Illinois Man Charged with Attempted Sexual Exploitation of Boys through Online Video GamesRead the Press Release
BOSTON – Zack Sawyer, 30, was charged in a criminal complaint in U.S. District Court in Springfield with one count of sexual exploitation of children.
According to the complaint, Sawyer used online interactive video games including X-Box Live and MineCraft to communicate with at least eight boys aged 10 to 13 years old in Massachusetts, Illinois, and Virginia.
Specifically, in March 2010, Sawyer allegedly used X-Box Live to contact 12-year-old boys from Roselle, Ill. Sawyer asked one boy to send him nude photographs and the addresses and phone numbers of the boy’s friend, and engaged the other boy in sexually explicit chats. When the second boy blocked Sawyer from the X-Box Live system, Sawyer responded with a death threat.
In May 2010, Sawyer used X-Box Live to allegedly contact two 13-year-old boys in Hampshire County, Mass. Sawyer asked one boy to send him nude photographs, and when the boy refused, Sawyer threatened to rape him and kill him. Sawyer asked the second boy to send him naked pictures and when the boy refused, Sawyer also threatened to rape him, claiming that he had a drug that would paralyze people.
In August 2010, Sawyer allegedly used X-Box Live to contact a 12-year-old boy in Rockton, Ill. Sawyer asked the boy to send him naked pictures and to provide his address. When the boy refused, Sawyer told him, “I don’t wanna have to do anything bad.” In January 2011, Sawyer used X-Box Live to contact two 13-year-old boys from Lockport, Ill. Sawyer engaged both boys in sexually explicit conversations and threatened to kill them and their families if they told anyone about his contact with them.
In early August 2014, after Sawyer had been notified that he was the subject of a Massachusetts arrest warrant based upon his solicitation of the two Hampshire County boys, Sawyer used MineCraft to contact a 10 year-old boy in Loudon County, Va. Sawyer sent the boy a picture of his penis, and asked the boy to send him a similar photograph. On two occasions, the boy used Skype to show Sawyer his genitals. In one online chat, Sawyer admitted to the boy that he was a “truck driver on the run from the cops.” Sawyer was ultimately arrested on Dec. 23, 2014.
The charging statute provides for a mandatory minimum sentence of 15 years and a maximum of 30 years in prison, a mandatory minimum of five years and a maximum of a lifetime of supervised release, a fine of $250,000 and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Honduran National Sentenced for Illegal Use of a Social Security NumberRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FRANCISCO MUNOZ, age 26, a citizen of Honduras and residing in Hammond, was sentenced after previously pleading guilty to a one-count Indictment for illegal use of a social security number.
U.S. District Judge Susie Morgan sentenced MUNOZ to time served, and a $100 special assessment. MUNOZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about May 6, 2013, MUNOZ was able to obtain a Louisiana driver’s license from the Office of Motor Vehicles by using a social security number that did not belong to him.
U.S. Attorney Polite praised the work of the Homeland Security Investigations and the Louisiana State Police in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE LEMUS-HERNANDEZ, age 28, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Susie Morgan sentenced LEMUS-HERNANDEZ to time served, followed by one year of supervised release, and a $100 special assessment. LEMUS-HERNANDEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about October 30, 2014, LEMUS-HERNANDEZ was found in the United States after having been officially deported and removed on or about April 16, 2012.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NELSON FLORES-CRUZ, age 31, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Martin L. C. Feldman sentenced FLORES-CRUZ to 45 months imprisonment, followed by 3 years of supervised release, and a $100 special assessment. Upon release from incarceration, FLORES-CRUZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about August 12, 2014, NELSON FLORES-CRUZ was found in the United States after having been officially deported and removed on or about July 11, 2008.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Hixson Tennessee Tax Preparer Indicted for Preparation of False Federal Income Tax ReturnsRead the Press Release
KNOXVILLE, Tenn.- On Apr. 7, 2015, a federal grand jury returned a nine-count indictment charging Kevin Mendell Walker, 44, of Hixson, Tenn., with aiding and assisting in the preparation and presentation of false federal income tax returns to the Internal Revenue Service (IRS).
Walker is the owner of K&R Enterprises, a tax preparation business located in Hixson, Tenn. According to the indictment on file with the U.S. District Court, from 2009 through 2012, he is alleged to have aided and assisted with the filing of nine false federal income tax returns, claiming deductions and credits for items and amounts the taxpayers were not entitled to claim, such as false education credits, false business expenses, and false hobby and investment expenses.
If convicted, Walker faces up to three years in prison and/or a fine of up to $250,000.
The case was investigated by IRS – Criminal Investigation. Assistant U.S. Attorney James Brooks represented the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Harrold Man Charged with Attempted Murder of A Federal Employee, Assaulting A Federal Employee, and Assault Resulting in Serious Bodily InjuryRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Harrold, South Dakota, man has been indicted by a federal grand jury for Attempted Murder of a Federal Employee, Assaulting a Federal Employee, and Assault Resulting in Serious Bodily Injury.
Brian Iron Boulder, a/k/a Brian Ironboulder, age 51, was indicted on April 7, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 8, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 25, 2015, Iron Boulder unlawfully attempted to kill another human being, an officer and employee of the United States, while said employee was engaged in the performance of his official duties, and said assault resulted in serious bodily injury.
The charges are merely an accusation and Iron Boulder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Iron Boulder was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for June 2, 2015.
Hardin County Businessman Sentenced for Federal Tax ViolationsRead the Press Release
BEAUMONT, Texas – A 64-year-old Silsbee, Texas, man has been sentenced for federal income tax violations, announced U.S. Attorney John M. Bales today.
Billy Dan Peavy pleaded guilty on Oct. 28, 2014 to two counts of filing false income tax returns and one count of aiding and abetting in the preparation and filing of a false corporation income tax return. Peavy was sentenced on Apr. 7, 2015 to 12 months and one day in federal prison by U.S. District Judge Thad Heartfield.
According to information presented in court, Peavy filed false 2007 and 2008 Form 1040 Individual Income Tax Returns. These returns were false because he knew that he didn’t report all of the income from Beech Creek Disposal, Inc. (also known as NBC Disposal, Inc) and Caneyhead Construction, Inc. on these returns. Peavy also pleaded guilty to one count of aiding in the preparation of a false Form 1120 Corporation Income Tax Return for 2008 for Beech Creek Disposal, Inc. The return was false because the gross receipts did not include all of the income from Beech Creek Disposal, Inc (also known as NBC Disposal, Inc.).
As a part of the plea agreement with the government, Peavy agreed to pay $351,766 in restitution, representing the amount of taxes to which the IRS was entitled. He also agreed to pay civil penalties and interest which will amount to more than $100,000. Peavy was also ordered to pay a fine of $5,000. Peavy was ordered to surrender on May 26, 2015 to begin serving his prison sentence.
In an effort to show extraordinary acceptance of responsibility, Peavy paid in full all of the restitution owed prior to the sentencing date. He also submitted numerous letters of support to the Court for his service in the community and elsewhere.
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Randall Fluke.Four Portland-Area Strip Club Operators Charged in $500,000 Tax Cheating ConspiracyRead the Press Release
PORTLAND, Ore. - Billy J. Williams, Acting U.S. Attorney for the District of Oregon, today announced that a federal grand jury sitting in Portland returned an indictment charging defendants:
- David G. Kiraz, of Happy Valley, Oregon,
- Marci K. Kiraz, wife of David Kiraz and a resident of Happy Valley, Oregon,
- Daniel G. Kiraz, brother of David Kiraz and a resident of Portland, Oregon, and
- George D. Kiraz, father of David Kiraz and Daniel Kiraz and a resident of Estacada and Portland, Oregon
with engaging in a scheme to file false federal income tax returns that underreported $1,501,874 in cash from their operation of two Portland-area strip clubs and to cheat the IRS out of $519,503 in income taxes. The indictment identifies David Kiraz as the owner and operator of the strip clubs, Daniel Kiraz and George Kiraz as managers of the strip clubs, and Marci Kiraz as a bookkeeper for the strip clubs.
The indictment alleges that the defendants operated Cabaret Lounge, a strip club located at 503 W Burnside Street in Portland and Cabaret Lounge II, a strip club located at 17544 SE Stark Street in Gresham. From 2007 through mid-2011, the strip clubs collected cash through cover charges from customers and stage fees from dancers, all of which were recorded in daily records at the businesses, however, the defendants allegedly had these records destroyed.
The defendants allegedly maintained two sets of books -- one set that did not record the cover charge cash and dancer stage-fee cash and one set that did. The first set of books was a profit and loss spreadsheet kept on the businesses’ computers on which the cover charges and dancer stage-fees were not recorded.The second set of books was a profit and loss spreadsheet kept on defendant David Kiraz’s personal computer at his home on which the defendants accurately recorded the cash made through cover charges and dancer stage-fees.
The indictment further alleges that each year the defendants reported the business activity of the strip clubs on the individual income tax return of defendant David Kiraz using a Schedule C, “Profit or Loss From Business”.The defendants gave their tax return preparers false records, intentionally causing the return preparers to create tax returns for defendant David Kiraz that did not report most of the cash obtained through cover charges and dancer stage fees.This resulted in underreporting of taxable income totaling $1,501,874 and a tax loss of $519,503 for tax years 2007 through 2010.
“Adult entertainment businesses deal primarily in cash, and that makes it much easier for some owners of these businesses to cheat on their taxes,” stated Acting U.S. Attorney Billy Williams. “This office, in partnership with the IRS, will vigorously investigate and prosecute business owners who do not abide by the tax laws or pay their fair share of income taxes.”
This case was investigated by the Criminal Investigation Division of the Internal Revenue Service. The case is being handled by Assistant U. S. Attorney Seth D. Uram.
Additional details can be found in the attached indictment, here. Kiraz Indictment
Former Union Employee Pleads Guilty ToRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced that Paul Harnas, Jr., age 30, of, Pine City, New York, pleaded guilty in federal court before United States District Judge Frank P. Geraci to conspiring to steal from a health care benefit program. The charge carries a maximum sentence 5 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the matter, stated that Harnas, a member of the Plumbers & Steamfitters Local 267, devised a scheme to submit fraudulent dental claims seeking reimbursement from the Local 267 health fund. Harnas prepared false dental receipts, which he and others then provided to the Local 267 health fund to support fraudulent claims for reimbursement that totaled approximately $65,000.
This plea is the culmination of an investigation by Special Agents of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia of the New York Regional Office, and the New York State Department of Financial Services, Frauds Bureau, under the direction of Superintendent Benjamin Lawsky.
Harnas is scheduled to be sentenced by Judge Geraci on July 8, 2015 at 11:00 a.m.
Former Iowa City Resident Sentenced to Prison Term for Unlawfully Reentering United StatesRead the Press Release
A man who previously lived in Iowa City, and operated Xtreme Construction with his wife, was sentenced last week to serve one year in federal prison.
Antonio Grangeno Zuniga, formerly of Iowa City, received the prison term after a December 23, 2014, guilty plea to one count of being found after unlawfully re-entering the United States, following removal to Mexico.
According to facts admitted by Zuniga, a Mexican citizen, he was twice previously removed from the United States, on September 16, 2011, and again on August 23, 2013. Thereafter, Zuniga unlawfully re-entered the United States and operated Xtreme Construction Company (Xtreme) with his wife, Samira Zuniga, from Iowa City.
In April 2011, nine workers employed by Xtreme were arrested by Immigration and Customs Enforcement while working for Xtreme and Eastern Iowa Construction on a roofing job in Hiawatha, Iowa. The nine workers were determined to be unlawfully in the United States. Shortly thereafter, Zuniga, his wife, and his family fled to Mexico to avoid the pending investigation. When Zuniga’s wife returned several weeks later to retrieve their belongings, she was arrested, charged, convicted, and sentenced to prison for harboring illegal aliens. Zuniga remained a fugitive until his arrest in southern California in October 2014.
Zuniga was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Zuniga was sentenced to 12 months’ imprisonment and ordered to serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Zuniga is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Richard L. Murphy and investigated by Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-0078-LRR.
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Former Gadsden County Sheriff's Captain Sentenced to Prison for Civil Rights ViolationRead the Press Release
TALLAHASSEE – James Corder, 54, a former captain with the Gadsden County Sheriff’s Office, was sentenced today by United States District Judge Mark E. Walker to 30 months in federal prison for violating the civil rights of an arrestee, obstructing justice, and making false statements in a federal investigation. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Corder was convicted on January 29, 2015, at the close of a four-day jury trial. Evidence presented at trial established that Corder stole $1,785 in cash from an arrestee, William Easterwood, and then lied in a sworn statement to FBI and FDLE agents investigating the theft.
“Law enforcement officers and other public servants are rightly held to a high standard of integrity, and I am proud of the many law enforcement officers who faithfully protect the Northern District of Florida,” said U.S. Attorney Marsh. “No one is above the law, and those who abuse our community’s trust should expect consequences.”
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement, with assistance from the Gadsden County Sheriff’s Office. It was prosecuted by Criminal Chief Karen Rhew-Miller.
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.
Florida Company and Owner Agree to Resolve Alleged False Claims Act Violations Regarding Historically Underutillized Business Zone ProgramRead the Press Release
Orlando, Florida, based Air Ideal Inc. and its majority owner, Kim Amkraut, have agreed to pay the United States $250,000 to resolve allegations that they made false statements to the Small Business Administration (SBA) to obtain certification as a Historically Underutilized Business Zone (HUBZone) company, the Justice Department announced today. Under the settlement, the defendants must also pay five percent of Air Ideal’s gross revenues over the next five years.
“When companies falsely claim eligibility for government contracts set aside for HUBZone businesses, they not only misuse taxpayer funds, but they also deprive HUBZone communities of the benefits of the program,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This settlement shows that there is a stiff price to pay for obtaining government contracts through false statements.”
“The HUBZone program is an important tool in the government’s effort to strengthen our economy by encouraging businesses to grow in underutilized and disadvantaged areas,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “We will not tolerate contractors who use deception to undermine its objectives and effectiveness.”
The purpose of the HUBZone program is to stimulate job growth in areas that have historically had low business investment. Under the HUBZone program, companies that maintain their principal office in a designated HUBZone and meet certain other requirements can apply to the SBA for certification as a HUBZone small business company. HUBZone companies can then use this certification when bidding on government contracts. In certain cases, government agencies will restrict competition for a contract to HUBZone-certified companies.
The United States’ complaint alleged that Air Ideal and Amkraut originally applied to the HUBZone program in 2010 by claiming that Air Ideal’s principal office was located in a designated HUBZone. The complaint further alleged that, in fact, this location was a “virtual office” where no Air Ideal employees worked, and that Air Ideal was actually located in a non-HUBZone location. Allegedly, the defendants not only misrepresented the location of Air Ideal’s principal office to the SBA, but also submitted to the SBA a fabricated lease agreement and other fabricated documents for its purported HUBZone office. The complaint further alleged that during the government’s investigation of this case, the defendants fabricated another version of its agreement for the virtual office and submitted that false document to the government.
The complaint alleged that Air Ideal used its fraudulently-procured HUBZone certification to obtain contracts from the U.S. Coast Guard, U.S. Army, U.S. Army Corps of Engineers and the U.S. Department of the Interior. Each of those contracts had been set aside for qualified HUBZone companies. The United States’ complaint asserted claims against Air Ideal and Amkraut under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989.
“The OIG will aggressively investigate intentional misrepresentations made by individuals who lie in order to claim eligibility for SBA set-aside programs,” said Inspector General Peggy E. Gustafson of the SBA. “I want to thank the U.S. Department of Justice for its dedication to pursuing justice in this case.”
The settlement resolves allegations brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by Patricia Hopson, who is employed in the construction industry. Under the act, a private citizen can sue on behalf of the United States and share in any recovery. The United States is entitled to intervene in the lawsuit, as it did here. As part of the resolution, Ms. Hopson will receive $42,500.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the Middle District of Florida, in conjunction with the SBA’s Office of Inspector General (OIG) and Office of General Counsel, the Department of Homeland Security’s Office of Inspector General, and the Defense Criminal Investigative Service.
The case is U.S. ex rel. Hopson v. Air Ideal, Inc. and Kim Amkraut, No. 6:13-cv-775-Orl-37GJK (M.D. Fla.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Florida Company and Owner Agree to Resolve Alleged False Claims Act Violations Regarding Historically Underutilized Business Zone ProgramRead the Press Release
Orlando, FL – Orlando, Florida, based Air Ideal Inc. and its majority owner, Kim Amkraut, have agreed to pay the United States $250,000 to resolve allegations that they made false statements to the Small Business Administration (SBA) to obtain certification as a Historically Underutilized Business Zone (HUBZone) company, the Justice Department announced today. Under the settlement, defendants must also pay five percent of Air Ideal’s gross revenues over the next five years.
“When companies falsely claim eligibility for government contracts set-aside for HUBZone businesses, they not only misuse taxpayer funds, but they also deprive HUBZone communities of the benefits of the program,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This settlement shows that there is a stiff price to pay for obtaining government contracts through false statements.”
“The HUBZone program is an important tool in the government’s effort to strengthen our economy by encouraging businesses to grow in underutilized and disadvantaged areas,” said U.S. Attorney A. Lee Bentley, III of the Middle District of Florida. “We will not tolerate contractors who use deception to undermine its objectives and effectiveness.”
The purpose of the HUBZone program is to stimulate job growth in areas that have historically had low business investment. Under the HUBZone program, companies that maintain their principal office in a designated HUBZone and meet certain other requirements can apply to the SBA for certification as a HUBZone small business company. HUBZone companies can then use this certification when bidding on government contracts. In certain cases, government agencies will restrict competition for a contract to HUBZone-certified companies.
The United States’ complaint alleged that Air Ideal and Amkraut originally applied to the HUBZone program in 2010 by claiming that Air Ideal’s principal office was located in a designated HUBZone. The complaint further alleged that, in fact, this location was a “virtual office” where no Air Ideal employees worked, and that Air Ideal was actually located in a non-HUBZone location. Allegedly, the defendants not only misrepresented the location of Air Ideal’s principal office to the SBA, but also submitted to the SBA a fabricated lease agreement and other fabricated documents for its purported HUBZone office. The complaint further alleged that during the government’s investigation of this case, the defendants fabricated another version of its agreement for the virtual office and submitted that false document to the government.
The complaint alleged that Air Ideal used its fraudulently-procured HUBZone certification to obtain contracts from the U.S. Coast Guard, U.S. Army, U.S. Army Corps of Engineers and the U.S. Department of the Interior. Each of those contracts had been set aside for qualified HUBZone companies. The United States’ complaint asserted claims against Air Ideal and Amkraut under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989.
“The OIG will aggressively investigate intentional misrepresentations made by individuals who lie in order to claim eligibility for SBA set-aside programs,” said Inspector General Peggy E. Gustafson of the SBA. “I want to thank the U.S. Department of Justice for its dedication to pursuing justice in this case.”
The settlement resolves allegations brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by Patricia Hopson, who is employed in the construction industry. Under the Act, a private citizen can sue on behalf of the United States and share in any recovery. The United States is entitled to intervene in the lawsuit, as it did here. As part of the resolution, Hopson will receive $42,500.
This matter was handled by the Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Middle District of Florida, in conjunction with the SBA’s Office of Inspector General (OIG) and Office of General Counsel, the Department of Homeland Security’s Office of Inspector General, and the Defense Criminal Investigative Service.
The case is U.S. ex rel. Hopson v. Air Ideal, Inc. and Kim Amkraut, No. 6:13-cv-775-Orl-37GJK (M.D. Fla.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Federal Jury Convicts Colleyville, Texas Man in Nearly $4 Million Wind Farm Investment ScamRead the Press Release
DALLAS — Following a seven-day trial before U.S. District Judge Barbara M. G. Lynn, a federal jury has convicted David Lyman Spalding of Colleyville, Texas, on all counts of a superseding indictment charging various offenses related to a wind farm investment scam he ran, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Specifically, the jury convicted Spalding, 62, on two counts of wire fraud, one count of mail fraud, two counts of making false testimony under oath in a bankruptcy proceeding and one count of making a false statement in a bankruptcy case. Each of the fraud counts carries a maximum statutory sentence of 20 years in federal prison and a $250,000 fine; every other count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, Spalding could be ordered to forfeit a money judgment in the amount of the fraud as well as his residence located on Spring Garden Drive in Colleyville. He will remain on bond pending sentencing, which is set for July 29, 2015, before Judge Lynn.
The government presented evidence at trial that from at least 2003 and continuing through approximately April 2011, Spalding raised approximately $3.7 million from 97 investors in 11 states. Spalding made false representations to get investors to invest in promissory notes issued by Wind Plus, Inc. and Baseload Energy LLC and diverted the funds for his own benefit, to include purchasing real estate and extensive international travel not related to either Wind Plus or Baseload.
When Spalding filed bankruptcy in November 2009 for Wind Plus Inc. and Wind Plus Holdings Inc., he continued to solicit investors for Baseload energy, promising that funds would be used to build infrastructure for renewable energy projects. He also represented that the changes in management were for business purposes when in fact the staff had quit Wind Plus because they were not paid. As part of his fraud, Spalding also represented that investors would be repaid their investments, within varying timeframes from 60 days to one year, when in fact, Spalding did not repay investors within any of the specified timeframes.
The government presented additional evidence that in the Wind Plus bankruptcy case, Spalding falsely testified under oath about the number of individuals who were note holders as well as the amount of distributions and withdrawals he had taken.
The FBI investigated. Assistant U.S. Attorney Chris Stokes and Special Assistant U.S. Attorney Dan Gividen are prosecuting.
Federal Court Marijuana Prosecution UpdateRead the Press Release
FRESNO, Calif. — One defendant was sentenced and one pleaded guilty today in two separate cases involving marijuana cultivation operations in Fresno and Kern Counties, according to U.S. Attorney Benjamin B. Wagner.
1,429 Marijuana Plants Seized from Squaw Valley Grow (1:12-cr-352 AWI)
United States District Judge Anthony W. Ishii sentenced Bounhome Singharath, 63, of Las Vegas, to two years in prison. On March 10, 2014, Singharath pleaded guilty and acknowledged that law enforcement officers had found 1,429 marijuana plants at a grow site on Ripple Lane in Squaw Valley in eastern Fresno County. Singharath was leaving the grow site in knee-high rubber boots and camouflage pants when he encountered the officers. Singharath said he is a resident of Las Vegas and had been living at the grow site for approximately two months for the purpose of growing marijuana. This case was the product of an investigation by the U.S. Drug Enforcement Administration (DEA) and Fresno County Sheriff’s Office.9,746 Marijuana Plants, 2 Firearms, Illegal Pesticides Seized in Sequoia National Forest Grow (1:12-cr-221 LJO)
Marcelina Botello Charles, 46, of Murrieta, Calif. pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute 9,749 marijuana plants at a grow site in the Lilly Canyon area of the Sequoia National Forest. She also pleaded guilty to distributing illegal pesticides, in violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and agreed to make restitution to the U.S. Forest Service for damage caused by the marijuana cultivation operation.According to court documents, the public land sustained extensive damage as a result of the marijuana cultivation activities there. Native oak trees and other vegetation were killed or cut down to make room for the marijuana plants. The soil was tilled, and fertilizers, pesticides, and rodenticides were spread throughout the site. Cans of a common Mexican rat poison, Fosfuro de Zinc and “Ratone: fosfuro de zinc,” and a Mexican insecticide, “QúFuran,” were found at both the cultivation site and the residence where Charles temporarily resided in Bakersfield, after she was found delivering supplies to the marijuana cultivation operation. In addition to the pesticides, two handguns and numerous items relating to marijuana cultivation were seized.
Botello Charles is scheduled for sentencing on August 11, 2014, by United States District Judge Lawrence J. O’Neill. The drug conspiracy carries a maximum prison term of 20 years in prison and a $4 million fine. The FIFRA violation carries a maximum penalty of one year in prison and a maximum fine of $25,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, DEA, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Department.
Assistant United States Attorney Karen Escobar is prosecuting both cases.
Dmv Employee Sentenced for Mail FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – The United States Attorney’s Office announced today that Latonya Young, 44, an employee of the Erie County Clerk’s Office who was assigned to work at the New York State Department of Motor Vehicles (NYS DMV), who was convicted of mail fraud, was sentenced to time served and one years supervised release by Senior U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the prosecution, stated that Young worked as a motor vehicle representative at the NYS DMV and was authorized to conduct transactions. The defendant had access to a NYS DMV database and computer system that contained driver’s licenses, and motor vehicle registration and title records.
Between June 13, 2012, and August 30, 2012, Young unlawfully processed fraudulent duplicate title applications for a person working with the government in return for cash payments totaling $725. In processing the fraudulent documents, the defendant unlawfully forged the name of the person listed on the duplicate title applications.
Young also admitted that in 2010, she assisted another in amending a New York State license to create a fake identification. The fake identification was created to enable an individual under the legal drinking age to obtain alcohol.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, NYS Department of Motor Vehicles, under the direction of Commissioner Barbara Fiala, Buffalo Police Department, under the direction of Commissioner Daniel Derenda, NYS Department of Taxation and Finance, Criminal Investigations Division, under the direction of Commissioner Thomas Mattox, NYS Department of Financial Services, under the direction of Superintendent Benjamin Lawsky, Criminal Investigations Division, and the NYS Inspector General’s Office, under the direction of Inspector General Catherine Leahy Scott.
Dermott Woman Charged in Superseding Indictment in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK – Another feeding program sponsor for the Department of Human Services (DHS) has been indicted for her role in a conspiracy to steal federal money earmarked to feed hungry children. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Kattie L. Jordan, 50, of Dermott, previously identified as “Co-Conspirator ‘A’” in an indictment that was returned by a Federal Grand Jury on December 11, 2014, was added as a defendant to the original indictment. The indictment already named Gladys Elise King, 34, of England; Tonique D. Hatton, 37, of North Little Rock; and Jacqueline D. Mills, 39, of Helena, as defendants in the case.
The Superseding Indictment, returned by a Federal Grand Jury on April 8, 2015, charges Hatton, Jordan, King, and Mills with conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds. Additionally, Mills is charged with wire fraud, paying bribes, and engaging in money laundering. King and Hatton are also charged with accepting bribes. The Superseding Indictment also seeks forfeiture of the proceeds obtained as a result of the fraud from the defendants.
According to the Superseding Indictment, the USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. USDA also funds the Summer Food Service Program. In Arkansas, the feeding programs are administered by DHS. Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The Superseding Indictment states that Hatton and King worked for DHS, and part of their job was to determine eligibility of sponsors to participate in the feeding programs. Jordan and Mills operated as sponsors for separate feeding programs. Hatton and King were responsible for approving Jordan’s programs and Mills’ programs at various times.
The Superseding Indictment alleges that Mills and Jordan made bribe payments to DHS employees Hatton and King. In exchange for those bribes, Mills and Jordan would submit inflated numbers of meals purportedly served from their sites. Hatton and King provided protection from DHS scrutiny.
The statutory penalty for wire fraud and conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The statutory penalty for receipt of bribes, paying bribes, and money laundering is not more than 10 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is conducted by the United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, United States Department of Agriculture—Office of Inspector General, and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris and Allison W. Bragg. If anyone is aware of any fraudulent activity regarding these feeding programs, please email that information to the United States Attorney’s office at [email protected].
An indictment contains only allegations. Defendants are presumed innocent until proven guilty.
Clinton County Resident Sentenced on Methamphetamine OffenseRead the Press Release
On April 8, 2015, Jimmy L. Richeson, Sr., 52, of Trenton, Illinois, was sentenced for his involvement in a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Richeson, who had previously pled guilty to an indictment charging conspiracy to manufacture methamphetamine, was sentenced to 84 months in federal prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between 2012 and March 2014, in Jackson, Randolph, and St. Clair Counties. Evidence at the plea and sentencing hearings established that Richeson was involved with co-defendants Allen and Carmen Clover and others in the manufacture of methamphetamine. Members of the group often traveled together to obtain pseudoephedrine, which they would later provide to methamphetamine manufacturers. Carmen Clover has previously been sentenced to 57 months in prison for her role in the methamphetamine conspiracy. Allen Clover has pled guilty and is awaiting sentencing.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Tilden Police Department, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Cleveland man indicted for fraud over $1.2 million purchase of Richfield homeRead the Press Release
A Cleveland man was indicted on bank fraud charges related to the fraudulent purchase of a Richfield home for nearly $1.2 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Damone Tyson, 49, was indicted on one count of conspiracy to commit bank fraud and one count of bank fraud. His actions resulted in a $631,854 loss to IndyMac Bank, according to the indictment.
Tyson served as president an agent for a consulting company known as Athletes & Entertainers, Inc. in Cleveland. The company represented that it provided financial, personal and business advice to professional athletes and entertainers, according to the indictment.
In 2007, Tyson directed a straw buyer to purchase the residential property at 3400 East Galloway Drive in Richfield. The straw buyer paid $1,189,000 for the home, which Tyson used as his primary residence. The straw buyer was able to arrange financing through only after making several false statements on loan applications about her income, savings, job title and other topics. These false statements were made at Tyson’s direction, according to the indictment.
The loans, obtained by the straw buyer at Tyson’s direction, eventually went into foreclosure, causing the loss to IndyMac Bank, according to the indictment.
Assistant United States Attorneys Mark Bennett and Derek Kleinmann are prosecuting the case following an investigation by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial where it is the government's burden to prove guilt beyond a reasonable doubt.
Church Custodian Arraigned on Child Pornography ChargesRead the Press Release
NEWNAN, Ga. - Emmett Winston Smith, a/k/a Everett Smith, a former facilities assistant and Sunday school teacher at a church in Newnan, Georgia, has been arraigned on federal charges of distributing, receiving, and possessing child pornography. Smith was indicted by a federal grand jury on March 24, 2015.
“Smith allegedly traded images and videos of child pornography with others, and went into Internet chat rooms looking to make contact with others who shared his same interests,” said Acting U.S. Attorney John Horn. “This case, which began with a lead from the Royal Canadian Mounted Police, illustrates our strong partnership with international law enforcement to combat child pornography and to identify and prosecute those who trade images of the sexual abuse of children.”
“The child pornography discovered during this investigation shows the abuse of numerous innocent children who are re-victimized each time images of their sexual exploitation are traded,” said Acting HSI Atlanta Special Agent in Charge Ryan Spradlin. “HSI Special Agents are actively working to disrupt the trade of these illegal images, and will continue to coordinate with our foreign and domestic law enforcement partners to identify and seek prosecution of criminals who possess them.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In 2014, the Royal Canadian Mounted Police investigated a person on allegations that he traded in child pornography. That investigation revealed that the Canadian subject had traded more than 200 e-mails containing child pornography with a person using an e-mail address that eventually led back to a house in Newnan, Georgia. Canadian law enforcement passed this information on to Special Agents of the Department of Homeland Security, who continued the investigation.
Homeland Security Investigations agents identified Emmett Winston Smith as the person trading e-mails with attachments of child pornography. They obtained a federal search warrant for Smith’s house in Newnan and executed it on March 5, 2015, where they found child pornography on three computers at the house. Smith was arrested that same day.
At the time of his arrest, Smith was working as a custodian at a large church in downtown Newnan that had a pre-school attached to it. He was also a Sunday school teacher at that same church.Smith, 66, of Newnan, Georgia, was arraigned today before U.S. Magistrate Judge Gerrilyn G. Brill. He was indicted on March 24, 2015.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Paul R. Jones is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Newnan Division is http://www.justice.gov/usao/gan/.
Canadian Woman Pleads Guilty to Conspiracy to Distribute Approximately 20 Kilograms of CocaineRead the Press Release
FRESNO, Calif. —Heather Lynn Necheff, 47, of Regina, Saskatchewan Canada, pleaded guilty yesterday to conspiracy to distribute and possess to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 17, 2013, Necheff’s vehicle was stopped for a traffic violation by a California Highway Patrol officer in Kern County in the Buttonwillow area. The officer obtained permission to search the vehicle and found approximately 20 kilograms of cocaine wrapped in individual duct-taped packages inside a suitcase. Necheff admitted that she was transporting the cocaine from Los Angeles to Seattle for eventual importation into Canada.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Necheff is scheduled to be sentenced by Judge Lawrence J. O'Neill on July 21, 2014. Necheff faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
California man indicted for distribution of methamphetamineRead the Press Release
A two-count indictment was filed charging a California man with crimes related to methamphetamine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jose Vega-Farias, 27, of Strathmore, California, was indicted on one count of conspiracy to distribute and possess with the intent to distribute methamphetamine, and one count of attempted possession with the intent to distribute methamphetamine.
Count 1 of the indictment alleges that from as early as approximately February 25, 2015, to on or about March 3, 2015, Vega-Farias and others conspired to distribute and to possess with the intent to distribute 500 grams or more of methamphetamine by shipping a parcel via U.S. Postal Service Express Mail from California to Ohio. Jose Vega-Farias accepted delivery of the parcel in Massillon, Ohio, and opened the package. Count 2 alleges that on or about March 3, 2015, Vega-Farias attempted to possess 887.5 grams of methamphetamine.
If convicted, a defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Sentenced in Federal Court in Syracuse for Sexually Exploiting Four Jefferson County Girls over the InternetRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the sentencing today of a Marina, California man on federal child exploitation charges.
DENNIS WHITT, age 41, was sentenced today by Hon. Glenn T. Suddaby to a total of 60 years in federal prison for enticing four minor children, ages 7 to 16, to engage in sexually explicit conduct with themselves and with one another, for the purpose of transmitting live depictions of the abuse to Whitt over the Internet. In November, 2014 WHITT pled guilty to seven counts of sexually exploiting these children.
Investigation by the New York State Police and the Federal Bureau of Investigation revealed that the four Jefferson County children were communicating with someone over the Internet who portrayed himself to be a 16 year old boy from California named "Lucas." "Lucas," never showed his face to the children, and would type directions to them as to what sexual conduct he wanted them to display for him, live, over the Internet.
As the result of the investigation the FBI executed a search warrant at WHITT’s California home in April of 2014, and WHITT was confirmed to be "Lucas." A review of WHITT’s computers revealed video and image files WHITT had recorded of the Jefferson County victims, as well as similarly explicit video and image files of other children. WHITT had catalogued over 10,000 video and image files depicting these children. To date, the FBI has identified a total of 35 children WHITT engaged with over the Internet, and whose sexually explicit images WHITT catalogued on his computers.
In addition to the 60 year sentence, WHITT was sentenced to a term of supervised release for life, and will be required to register as a sex offender.
WHITT’s arrest is the result of an investigation by the New York State Police and the Federal Bureau of Investigation, supported by the Northeast Cyber Forensics Center at Utica College, and the Jefferson County District Attorney’s Office. WHITT was prosecuted by Assistant U.S. Attorney Lisa Fletcher, as a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Bronx Man Sentenced to 16 Terms of Life in Prison for Armed Robberies of Seven Banks and A Restaurant in Bronx, Westchester, and Putnam CountiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that KARRIEM BARROW was sentenced today in White Plains federal court to 16 terms of life in prison plus two terms of 20 years in prison in connection with his participation in a series of armed robberies that included seven banks and a restaurant in Bronx, Westchester, and Putnam counties over a two-month period. BARROW was sentenced by U.S. District Judge Kenneth M. Karas, who presided over the nine-day jury trial that resulted in BARROW’S conviction in November 2011.
Manhattan U.S. Attorney Preet Bharara said: “Today’s sentence sends a strong and clear message that our federal and local partners will work together to ensure that those who endanger the lives of our citizens through brazen acts of violence will be met with severe punishment.”
According to the Complaint, Indictment, and evidence presented at trial:
In January 2010, BARROW and his accomplice Carl Farrington robbed the Golden China restaurant located at 881 E. Gun Hill Road in the Bronx, New York, at gunpoint. BARROW and Farrington subsequently participated in a series of armed bank robberies, robbing seven banks (see below).
BARROW was convicted of one count of conspiracy to commit armed robbery, one count of armed robbery, one count of conspiracy to commit armed bank robbery, seven counts of armed bank robbery and eight counts of using, carrying, or possessing a firearm in furtherance of a crime of violence.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the New York State Police, and the police departments of Westchester County, White Plains, Bronxville, Briarcliff, Greenburgh, and Carmel.
This case is being handled by the Office's White Plains Division. Assistant United States Attorneys Douglas B. Bloom and Parvin Moyne are in charge of the prosecution.
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Bridgeport Man Sentenced to Prison for Ramming Law Enforcement Vehicle and Injuring ATF AgentRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BERNARD PETTWAY, 39, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for ramming a law enforcement vehicle and injuring an ATF special agent.
This matter stems from “Operation Samson,” a multi-layered initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, between April and June 2014, investigators made three controlled purchases of crack cocaine from PETTWAY. On June 16, 2014, an individual working with law enforcement called PETTWAY and placed an order for crack cocaine. PETTWAY arranged to meet the drug purchaser at a location on Fairfield Avenue in Bridgeport. After PETTWAY arrived at the meeting location, Bridgeport Police officers exited a marked car and approached his vehicle. PETTWAY then attempted to evade law enforcement and drove away at a high rate of speed. A Bridgeport Police officer and an ATF special agent who were in an unmarked vehicle nearby attempted to block PETTWAY’s escape by positioning their car to partially block the roadway. PETTWAY then rammed into the back end of the unmarked vehicle, spinning it approximately 90 degrees and rendering it inoperable, and fled the scene. He was apprehended later that day.
The ATF special agent suffered back and neck injuries and was taken to the hospital.
After his arrest, PETTWAY assisted law enforcement in the recovery of an illegal firearm.
On October 22, 2014, PETTWAY pleaded guilty to one count of assaulting a federal agent with a dangerous weapon.
This case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Bedford Man Plead Guilty to Distributing Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of Bedford, Pa., pleaded guilty in federal court to a charge of distribution of child pornography, United States Attorney David J. Hickton announced today.
Wade C. Baer, 31, of Bedford, 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 Feb. 19, 2013, Baer distributed a picture via the Internet which depicted a minor engaging in sexually explicit conduct.
Judge Gibson scheduled sentencing for Aug. 31, 2015, at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, 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 Southwest Computer Crime Task Force of the Pennsylvania State Police conducted the investigation that led to the prosecution of Baer.
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 better 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.
Brandon Residents Indicted for Conspiracy and Making False StatementsRead the Press Release
Jackson, Miss - Kayla Paul Lindsey, 46, of Brandon, and Marlene Solomon Williams, 61, of Brandon, were indicted on April 7, 2015 by a federal grand jury for conspiracy to make false statements and for making false statements to the Federal Home Loan Bank of Dallas, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway.
The 17- count indictment alleges that Lindsey and Williams administrated a grant from the Federal Home Loan Bank of Dallas that was intended to provide home repairs for low- to moderate-income households. According to the indictment, Lindsey and Williams required the contractors they hired to perform the repairs to inflate their invoices and to kick the extra money back to Lindsey and Williams. The fraudulently inflated invoices were submitted to the Federal Home Loan Bank of Dallas through its local member institution, Trustmark Bank. It is alleged that, during the course of the conspiracy, the defendants were paid $187,261.23 in kickbacks generated by the fraudulent invoices.
Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency Office of Inspector General, stated: "The act of committing fraud upon programs that are intended to assist the elderly, low income, or others who have fallen on hard times is detestable. Kayla Lindsey and Marlene Williams allegedly engaged in such a fraud against a Federal Home Loan Bank. FHFA-OIG is committed to identifying fraudsters and seeking prosecution to the fullest extent the law allows."
"This case is an example of the results we can achieve by working with our law enforcement partners," stated FBI SAC Donald Alway. "I commend the work of the individuals involved in this collaborative, investigative effort."
This case was investigated by the Federal Housing Finance Agency Office of the Inspector General, Federal Bureau of Investigation, USDA Office of Inspector General, and the Mississippi Attorney General’s Office.
If convicted each defendant faces up to five years in prison and a $250,000 fine for the conspiracy, and up to 30 years in prison and a $1,000,000 fine for each of the 16 remaining counts of making false statements to the Federal Home Loan Bank of Dallas.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
Australian Investigation Leads to Alturas Man; Sentenced Today to Nearly 20 Years in Prison for Child PornographyRead the Press Release
SACRAMENTO, Calif. — Michael Elliot Papac, 47, of Alturas, was sentenced today by United States District Judge John A. Mendez to 19 years and seven months in prison to be followed by a lifetime of serviced release for receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Modoc County Sheriff’s Office and the Queensland Police Service in Australia. Assistant United States Attorney Josh F. Sigal prosecuted the case.
According to court documents, Papac was arrested on February 14, 2014, following a referral by the Queensland Police Service in Australia regarding the potential sexual abuse of a minor. A covert Internet investigator in Queensland come into contact with Papac on a Russian website known for being a source of child pornography. back to Papac in Alturas. Papac had posted photos of a sleeping 8-year-old girl with her pajama top unbuttoned. He discussed his plan to sedate and molest her while she slept and to take and distribute photographs of the molestation. With the assistance of Australian police, HSI agents were able to trace Papac’s email to his residence in Alturas and arrest him before he was able to act on his plan. In addition, on at least three separate occasions between February 7, 2014, and February 10, 2014, he sent and received child pornography.
Papac pleaded guilty to the charges on June 24, 2014. He had been convicted in 2005 in Modoc County for lewd acts with a minor and had served six years in prison.
At sentencing, Judge Mendez noted that Papac “learned nothing” from his prior state prison term and explained that the defendant has “created and continues to create a danger to the public,” and that but for the “terrific” work of law enforcement, “further damage was not done” to the victim.
“This case shows the extraordinary level of collaboration among law enforcement agencies around the globe to combat the online sexual exploitation of children,” said Tatum King, acting special agent in charge of HSI San Francisco. “While the initial lead was uncovered on the other side of the world, owing to remarkable international cooperation and astute detective work, HSI special agents were able to locate this young girl and rescue her. For that, we’re indebted to the efforts of the Queensland Police Service and, closer to home, to the Modoc County Sheriff’s Department.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Another Charged and Arrested in Sex Trafficking of Minors ConspiracyRead the Press Release
HOUSTON – The final man in a six-defendant sex trafficking and alien harboring conspiracy has been arrested and will make his initial appearance in federal court, announced U.S. Attorney Kenneth Magidson.
Walter Alexander Ejcalon Xalcut aka Chapin, 27, an illegal alien from Guatemala, was arrested last night in Houston. He is set make his initial appearance before U.S. Magistrate Judge Frances Stacy at 2:00 p.m. today.
Xalcut is charged along with Hugo Alexander Melendez-Gonzalez aka El Gordo, 37, Jose William Quintanilla aka Pablo or Ronko, 40, Franciso Guerra Yvinni Pleitez aka Colochin or Flaco, 33, Adelio De Jesus Batres aka Muneco, 52, and Mariano Quintanilla-Campos, 33, all of El Salvador. Xalcut’s co-conspirators had been previously arrested and remain in custody.
The indictment alleges the defendants were engaged in a conspiracy to commit sex trafficking of a minor by force and coercion, sex trafficking of a minor as well as an alien harboring and transporting conspiracy.
The indictment alleges that from late 2010 to the present, all defendants conspired to cause a person less than 18 years of age to engage in a commercial sex act and did, in fact, cause two minor victims to engage in a commercial sex act. The defendants allegedly instructed minor undocumented victims and young women how to solicit and charge for commercial sex acts and collected the fees that were paid.
The indictment further alleges the four engaged in a conspiracy to harbor and conceal illegal aliens in Houston.
The case was investigated by the FBI, Harris County Sheriff’s Office, Houston Police Department, Homeland Security Investigations and Texas Department of Public Safety. Assistant U.S. Attorney Doug Davis is prosecuting.Anchorage Felon Sentenced for Illegal Possession of A FirearmRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Utuva Alaelua was sentenced in federal court in Anchorage to 58 months in federal prison, to be followed by three years of supervised release, for his conviction for being a felon in possession of a firearm.
Chief United States District Court Judge Ralph R. Beistline imposed the sentence on Alaelua, 31.
The case was prosecuted by Assistant U.S. Attorney Kelly Cavanaugh. Alaelua pled guilty to one count of an indictment charging him with being a felon in possession of a firearm.
In Anchorage, on August 27, 2014, Anchorage Police Department officers responded to a local city park in reference to a running vehicle with two individuals who appeared to be passed out inside the vehicle. Alaelua was in the driver’s seat of the vehicle, which had been reported stolen on August 8, 2014. Alealua had a Smith & Wesson 9mm pistol inside the driver’s side door pocket of the vehicle and was wearing a holster for the firearm. The firearm had been reported stolen in June 2014. Alaelua is prohibited under federal law from possessing firearms or ammunition due to his prior felony convictions in the United States District Court for the District of Alaska for Distribution of a Controlled Substance and Carrying a Firearm during Drug Trafficking.
Ms. Loeffler commended the Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Alaelua.
Albuquerque Woman Pleads Guilty to Federal Oxycodone Trafficking ChargesRead the Press Release
ALBUQUERQUE – Crystal Staggs, 53, of Albuquerque, N.M., pleaded guilty today in federal court to Oxycodone trafficking charges. Under the terms of her plea agreement, Staggs will be sentenced to 63 months in federal prison followed by a term of supervised release to be determined by the court.
Staggs was arrested on Aug. 28, 2012, on a criminal complaint charging her with distributing and attempting to distribute Oxycodone to an undercover DEA agent on four occasions from June 13, 2012 through Aug. 28, 2012, in Bernalillo County, N.M. According to the complaint, Staggs sold Oxycodone to the undercover agent as follows: 48 30-mg Oxycodone pills and four 15-mg Oxycodone pills for $1,000.00 on June 13, 2012; 100 30-mg Oxycodone pills for $1,800.00 on June 27, 2012; and 87 30-mg Oxycodone pills and six 15-mg Oxycodone pills for $1,800.00. Staggs was arrested on Aug. 28, 2012, when she attempted to sell 100 30-mg Oxycodone pills to the undercover agent; the pills were in her possession when she was arrested.
In Sept. 2012, Staggs was indicted and charged with three counts of distribution of Oxycodone and one count of possession of Oxycodone with intent to distribute.
During today’s change of plea hearing, Staggs pled guilty to the four-count indictment and admitted to distributing an aggregate of 10.2 grams of Oxycodone to an undercover DEA agent from June 13, 2012 through Aug.28, 2012.
This case was investigated by the Tactical Diversion Squad of the DEA’s Albuquerque office and is being prosecuted by Assistant U.S. Attorney Shammara Henderson. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Akron man indicted for possession of images of child sexual abuseRead the Press Release
A grand jury returned a two-count indictment charging William A. Marino, 26, of Akron, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, and with possessing images of child sexual abuse, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Akron Resident Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Akron man faces heroin chargeRead the Press Release
A federal grand jury returned a one-count indictment charging Darious Robinson, aka Darius Robinson, 26, of Akron, with possession with intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on March 13, 2015, Robinson was found to have in his possession a plastic bag containing three individually wrapped plastic bats which contained approximately 4.5 grams of heroin.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
28 Year-Old Caguas Man Arrested for Sextortion and Attempted Sex Trafficking of A 33 Year-Old WomanRead the Press Release
SAN JUAN, Puerto Rico – U.S. Magistrate Judge Bruce McGiverin authorized a criminal complaint charging Mario Lebrón-Càceres with one count of attempted sex tracking by means of force, threats of force, fraud and coercion, and one count of interstate extortion, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
The criminal complaint alleges that from on or about February 24, 2015, through on or about April 5, 2015, the defendant attempted to recruit, entice, harbor, transport, provide, obtain and maintain a person, knowing or in reckless disregard of the fact that means of force, threats of force, fraud, coercion, or any combination of such means would be used to cause the person to engage in a commercial sex act.
More specifically, on or about February 24, 2015, the 28 year-old defendant met a 33 year-old woman online through the Internet application known as “Meetme.com.” Shortly after meeting, the two switched to another Internet chat program known as “WhatsApp.” Within a matter of only a few days, Lebrón-Càceres began requesting sexually explicit images from the 33 year-old woman. After much persuasion, she finally relented to his request and sent several nude images to Lebrón-Càceres. Almost immediately thereafter, Lebrón-Càceres began to threaten to upload the images to a known pornographic website highlighting Puerto Rican women and to share the images with her co-workers if she did not agree to have sex with him. The adult victim filed a complaint with the local authorities, who in turn asked for assistance from the ICE-HSI Human Exploitation Group.
On April 2, 2015, with the assistance of Federal agents, the victim conducted several consensually monitored telephone calls with Lebrón-Càceres, during which the defendant suggested that they meet at a motel where they could have sex in exchange for which he would purportedly delete or return to the victim the sexually explicit images she had sent him.
“‘Sextortion’ is one of the most common threats facing our younger generation. This is the first case prosecuted by Federal authorities in Puerto Rico involving ‘sextortion’ between adults. Routinely, online predators use the computer to befriend unsuspecting victims and convince them to record themselves performing sexually explicit acts. Once the predator gets a hold of such images, he feels empowered to force the victim to do anything he wants. In this case, it was forcing the victim to have sex with him or else he was going to publish the sexually explicit images,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
“This case is particularly important at it sends a clear message that HSI will investigate and apprehend those who prey on others for sexual gratification despite the age of the victim,” said Ángel M. Meléndez, special agent in charge of HSI San Juan.
Assistant U.S. Attorney Marshal D. Morgan is in charge of the prosecution of the case. The detention hearing is scheduled for tomorrow, Thursday, April 9 at 1:30 pm. The defendant faces a mandatory minimum sentence of 15 years and a maximum possible sentence of life in prison if he is found guilty. Criminal complaints contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
7 April 2015
Williamson County Court at Law Judge Indicted by Federal Grand Jury in Connection with Firearm Violations and False Statements to a Government AgentRead the Press Release
In Austin today, a federal grand jury indicted Williamson County Court at Law Judge Timothy L. Wright, III, on various firearm violations and making false statements to a government agent. That announcement was made today by Acting United States Attorney Richard L. Durbin, Jr., Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Robert Elder, and Homeland Security Investigations (HSI) Special Agent in Charge James Spero.
The nine-count indictment alleges that between June 1, 2014, and February 24, 2015, Wright sold firearms on three occasions to a person he knew or had reasonable cause to believe was a convicted felon; aided, abetted and facilitated the smuggling and attempted smuggling of firearms from the United States; and made a false statement during the purchase of a firearm. In addition, the indictment alleges that Wright made false statements on two occasions to a government agent about creating false paperwork and selling firearms to a convicted felon.
According to ATF Special Agent in Charge Robert Elder, “This firearms trafficking investigation, which involves multiple firearms destined for Mexico, is another example of ATF’s relentless pursuit of individuals who attempt to utilize any means available to illegally appropriate and divert firearms for criminal purposes.”
“The indictment of Timothy L. Wright, Williamson County Court at Law Judge, sends a strong message that Homeland Security Investigations (HSI) will not tolerate the unlawful export of firearms, regardless of the smuggler’s position or status,” said James Spero, Special Agent in Charge, HSI San Antonio. “These serious gun charges are a breach of that public trust which puts the safety of our communities at risk.”
Wright, age 70, has been the judge of Williamson County Court at Law # 2 since January 2, 2003.
Upon conviction, Wright faces up to ten years of imprisonment on each firearm charge and up to five years of imprisonment on each count alleging false statement to a government agent.
This indictment resulted from an investigation conducted by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations with assistance from the Internal Revenue Service and the Texas Department of Public Safety. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Washington, D.C. Man Sentenced to Six Years in Prison for Distributing HeroinRead the Press Release
Users Traveled from Fairfax County to Purchase Heroin
ALEXANDRIA, Va. – Antonio Torrez Woodson, 33, of Washington, D.C., was sentenced today to 72 months in prison followed by four years of supervised release for conspiracy to distribute 100 grams or more of heroin.
Woodson pleaded guilty to the offense on December 17, 2014. According to court documents, Woodson regularly sold heroin to at least nine adults between the ages of 21 and 36, who traveled from in and around Fairfax County, Virginia, to purchase heroin from the defendant in Washington, D.C. Woodson previously served 60 months in federal prison for selling drugs.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee.
This case was investigated by the DEA’s Washington Field Division and the Fairfax County Police Department. Special Assistant U.S. Attorney and Virginia Assistant Attorney General Marc J. Birnbaum is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-419.
Two Georgia men plead guilty to federal methamphetamine chargesRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Nicolas Dale Pierce, 32, of Covington, Georgia, and Eric James Nelson, 27, of Conyers, Georgia, pleaded guilty today to conspiracy to distribute 50 or more grams of methamphetamine.
On February 10, 2015, officers with the Metropolitan Drug Enforcement Network Team (MDENT) received information that Nelson and Pierce had brought large quantities of methamphetamine from Georgia to Elkview, West Virginia. Officers attempted to stop Pierce near the LaQuinta Inn in Elkview, but before officers were able to reach the car, Pierce sped away hitting several vehicles. Officers eventually found Pierce behind the nearby Crossings Mall. Pierce rammed two police cars with his car, and then fled on foot. One of the police cars was a total loss due to the impact. When police finally caught up with Pierce, they found him in possession of approximately $2,900 in cash, part of which was prerecorded buy money used during a controlled drug deal earlier in the day. Police also located a loaded gun that Pierce had thrown from his car.
Officers also apprehended Nelson near the LaQuinta Inn. Nelson had approximately 150 grams of methamphetamine and a loaded handgun in his possession.
Nelson and Pierce admitted that they were working together to sell methamphetamine in and around Kanawha County.
Nelson and Pierce face up to 40 years in federal prison when sentenced on July 29, 2015. United States District Judge John T. Copenhaver, Jr. is presiding over the cases.
The Metropolitan Drug Enforcement Network Team conducted the investigation with the assistance of Charleston Police Department’s Special Enforcement Unit. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
Tohono O’odham Man Sentenced to 12 Years in Prison for Voluntary ManslaughterRead the Press Release
TUCSON, Ariz. – Yesterday, Michael Henry Flores, 30, a member of the Tohono O’odham Indian Nation, was sentenced by Chief U.S. District Judge Raner C. Collins to 12 years in prison having pleaded guilty on Aug. 21, 2014, to the offense of voluntary manslaughter.
On the night of Aug. 15, 2011, and into Aug. 16, 2011, the defendant became enraged during an argument with his girlfriend and killed her by assaulting and choking her outside his residence near Sells, Ariz.
The investigation in this case was conducted by the Tohono O’odham Police Department and the Federal Bureau of Investigation. The prosecution was handled by Raquel Arellano, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-13-01207-RCC
RELEASE NUMBER: 2015-031_ Flores