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7 April 2015
Three charged with child pornography offensesRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned indictments today charging three Northern West Virginia residents with child pornography offenses, United States Attorney William J. Ihlenfeld, II, announced.
Robert J. Gongloff, 25, of Weirton, West Virginia, is alleged to have produced numerous images and videos depicting nude minors and minors engaged in sexually explicit conduct. Gongloff, originally from Preston County, West Virginia, is further alleged to have misrepresented his name and age on a website known as MeetMe.com, claiming to be 17 years old and using the name “Johnny Williamson,” in order to transmit sexually explicit photographs to minor females. Following an investigation by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations, with assistance from the West Virginia State Police, Gongloff is charged with:
• One count of “Possession of Child Pornography,” for which he faces up to 20 years in prison and a fine of up to $250,000.00, and
• Two counts of “Production of Child Pornography.” He faces between 15 and 30 years in prison and a fine of up to $250,000.00 on each count.Matthew A. Amedeo, 69, of Chester, West Virginia, is alleged to have utilized an online file sharing website to share and download various images of child pornography in Hancock County, West Virginia throughout 2014. Following an investigation by the West Virginia State Police, Amedeo is charged with:
• One count of “Receipt and Distribution of Child Pornography,” for which he faces between five and twenty years in prison and a fine of up to $250,000.00, and
• One count of “Possession of Child Pornography,” for which he faces up to 20 years in prison and a fine of up to $250,000.00.Stephen Singo, 34, of Weirton, West Virginia, is alleged to have utilized an online file sharing website to share and download various images of child pornography. Following an investigation by the West Virginia State Police, Singo is charged with:
• One count of “Receipt and Distribution of Child Pornography,” for which he faces between five and twenty years in prison and a fine of up to $250,000.00, and
• One count of “Possession of Child Pornography,” for which he faces up to 20 years in prison and a fine of up to $250,000.00.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the cases on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Labor Union Members Plead Guilty in Manhattan Federal Court to Accepting Bribes in Exchange for Labor Union MembershipsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHRISTOPHER LUPINO and KELWYN BENJAMIN pled guilty today, and ADAM FORESTA pled guilty on March 31, 2015, each to participating in a conspiracy to commit honest services wire fraud in connection with their accepting bribes in exchange for memberships in Steamfitters Local 638, a New York City labor union. FORESTA, LUPINO, BENJAMIN, and James Sheeran were arrested in November 2014. LUPINO, BENJAMIN, and FORESTA pled guilty today in Manhattan federal court before United States District Judge William H. Pauley III.
Manhattan U.S. Attorney Preet Bharara said: “With their guilty pleas Christopher Lupino, Kelwyn Benjamin, and Adam Foresta have accepted responsibility for their roles in a scheme to swap memberships in Steamfitters Local 638 for cash bribes. We will continue to work with our law enforcement partners at the FBI, the U.S. Department of Labor, and the NYPD to stamp out union fraud wherever we find it.”
According to allegations contained in the Indictment, the underlying criminal Complaint unsealed on November 5, 2014, and statements made during court proceedings:
FORESTA, LUPINO, BENJAMIN, and Sheeran were each members of Steamfitters Local 638, a local division of a labor union that represents workers in the plumbing and pipefitting industries in New York City (the “Union”). Sheeran was an organizer for the Union and worked on membership recruitment. In that capacity, he owed fiduciary duties to Steamfitters Local 638.
In December 2013, an individual who has not been charged (“Applicant-1”) told a cooperating witness (the “CW”) that Applicant-1 had been offered membership in the Union – what is known as a “Union book” – in exchange for a $35,000 bribe. Applicant-1 asked the CW to help him/her pay for the Union book.
Over the next several months, FORESTA, LUPINO, and BENJAMIN each had conversations, which were recorded by the Federal Bureau of Investigation (“FBI”), with the CW about buying Union books for Applicant-1 and another individual who has not been charged (“Applicant-2”). During these calls, the CW was told that each Union book would cost $40,000 – $5,000 for the typical Union application fee and a $35,000 cash bribe.
In October 2014, Applicant-1 met with Sheeran, who coached Applicant-1 to provide answers to questions from Union officials to enable him to secure approval from the interviewing officials, including by misleading the Union officials. Applicant-1 and Applicant-2 met with the Union committee later that month in connection with their applications. After that meeting, LUPINO told the CW that approvals from the Union would come soon.
On November 3, 2014, a few days before Applicant-1 and Applicant-2’s memberships were to be issued, LUPINO and FORESTA arranged for FORESTA to meet with the CW to pick up the bribes for the two Union books. LUPINO told the CW to bring $70,000 in cash and that the other $10,000, which would go to the Union for application fees, should be paid for by check or money order. On November 4, 2014, FORESTA and the CW met in Manhattan. The CW gave FORESTA $35,000 in cash for one Union book – telling FORESTA he/she would pay for the second Union book the next day.
FORESTA, 45, of Staten Island, New York, LUPINO, 51, of New Monmouth, New Jersey, and BENJAMIN, 41, of New York, New York, each pled guilty to one count of conspiring to commit honest services wire fraud, which carries a maximum term of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
FORESTA, LUPINO, and BEJAMIN are all scheduled to be sentenced on July 31, 2015. Trial against Sheeran is scheduled to begin on September 15, 2015, before Judge Pauley.
Mr. Bharara praised the investigative work of the FBI, the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the New York City Police Department.
The case is being prosecuted by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Joshua A. Naftalis and Jordan Estes are in charge of the prosecution.
The allegations contained in the Indictment against Sheeran are merely accusations, and he is presumed innocent unless and until proven guilty.
Three Individuals Indicted in April 2015 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the April 2015 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
CLINTON JAMES JONES, age 34, of Sallisaw, Oklahoma
Felon in Possession of Firearm and Ammunition
The Indictment alleges that on or about March 14, 2015, within the Eastern District of Oklahoma, the defendant CLINTON JAMES JONES, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Sallisaw Police Department, the United States Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The charge is in violation of Title 18, United States Code, Section 922(g)(1), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Chris Wilson
JOSE LUIS FLORES-GARCIA, age 22, of Nuevo Laredo, Mexico a/k/a CARLOS FERNANDO
Possession of Firearm by Illegal Alien
The Indictment alleges that on or about February 18, 2015, within the Eastern District of Oklahoma, the defendant, JOSE LUIS FLORES-GARCIA, a/k/a Carlos Fernando, then being an alien illegally and unlawfully in the United States, did knowingly possess in and affecting commerce, a firearm, to-wit: one Lorcin 9mm semi-automatic handgun, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Oklahoma Highway Patrol and the United States Department of Homeland Security. The charge is in violation of Title 18, United States Code, Section 922(g)(5)(A), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris
BILLY WADE VINCENT, age 55, of Poteau, Oklahoma
Felon in Possession of Firearm
The Indictment alleges that on or about December 10, 2014, within the Eastern District of Oklahoma, the defendant, BILLY WADE VINCENT, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, with an obliterated serial number, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Poteau Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The charge is in violation of Title 18, United States Code, Section 922(g)(1), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris.
Third Person Sentenced in A False Income Tax Refund SchemeRead the Press Release
COLUMBUS, OHIO – Suheidy A. Warner, 31, of Columbus, was sentenced to 18 months in prison for conspiracy to file false claims for federal income tax refunds with the Internal Revenue Service (IRS). Warner was also ordered to pay more than $251,000 in restitution to the IRS. Approximately $63,000 of the restitution will be paid jointly with the co-conspirators in this case.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office; and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, between February 2010 and June 2010 Warner abused her position of trust as a Chase Bank teller by cashing approximately 36 federal income tax refund checks she knew were fraudulently obtained. Warner was not given authorization by Chase Bank to cash these checks and was subsequently terminated.
The tax refund checks were given to Warner by a man who identified himself as Rafael Mota. Rafael Mota told her that the checks needed to be cashed for people that did not have identification, so they could cash the refund checks themselves.
The income tax refund checks were mailed to pre-arranged addresses, usually apartments in New York, New Jersey and other nearby states. The addresses contained on many of the income tax refund checks often shared the same street address, but different apartment numbers. This made it easier to collect the income tax refund checks from one location. The income tax refund checks were collected by corrupt postal workers, apartment superintendents, or other perpetrators who simply waited for the checks to be delivered by unknowing mail carriers. The perpetrators then used couriers to travel to surrounding states, including to Columbus, Ohio, to cash the checks at various check-cashing service businesses, including San Isidro Cargo. The owners of San Isidro Cargo were Mercedes Emelinda-Silie and Jose Martinez.
Warner used various Chase Bank customer accounts to cash the income tax refund checks. Warner deposited the funds into two prearranged accounts. One account was that of a co-conspirator located in New Jersey. The second was the account of Alberto Rivera Falcon. Nineteen income tax refund checks totaling $126,108.30 were deposited into Falcon’s account. Seventeen income tax refund checks totaling $62,107 were deposited into the account of the co-conspirator located in New Jersey. Warner received approximately $200 to $300 per check.
Warner admitted to hand-carrying these U.S. Treasury checks to work at Chase Bank, using Falcon’s account to deposit them, withdrawing large sums of cash, and leaving the bank with the cash in her possession and providing the currency to other co-conspirators.
The income tax refund checks, and the believed stolen State of New Jersey tax refund checks, were the sole sources of deposits into both accounts. Warner received the income tax refund checks with the endorsed signature directly from Rafael Mota and Alberto Falcon. None of the income tax refund checks bore Warner’s name, Falcon’s name, Mota’s name or the New Jersey co-conspirator’s name.
The total tax loss associated with Warner’s involvement in this conspiracy is approximately $188,215.30, which represents the total of the 36 purported income tax refund checks that she helped to negotiate.
Warner returned to the United States and pleaded guilty to one count of conspiracy to file false claims for federal income tax refunds with the IRS on December 9, 2014.
On April 4, 2014 Jose Luis Martinez, 48, of Columbus, Ohio was sentenced by U.S. District Judge Gregory L. Frost to 60 months in prison, three years of supervised release, and ordered to pay $4,415,492.58 in restitution to the IRS for his role in a conspiracy to defraud the IRS by filing false claims for federal income tax refunds and for operating an unlicensed money transmitting business.
On April 24, 2014 Mercedes Emelinda-Silie, 41, of Grove City, Ohio was sentenced by U.S. District Judge Gregory L. Frost to 36 months in prison, three years of supervised release, and ordered to pay $4,415,492.58 in restitution to the Internal Revenue Service (IRS) for her role in a conspiracy to defraud the IRS by filing false claims for federal income tax refunds.
Stewart commended the investigation by IRS-Criminal Investigation and the U.S. Postal Service, as well as Assistant United States Attorney Daniel Brown, who represented the United States in this case.
Schuylkill County Man Charged with the Illegal Possession of Unregistered MachinegunsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of criminal charges against James Augustus Brauer, age 50, of Muir, Schuylkill County, Pennsylvania. A Criminal Information charged that on January 24, 2012, in Schuylkill County, Pennsylvania, Brauer illegally possessed (1) a fully functional unregistered machinegun, and (2) an unmarked and unregistered drop in auto sear—which is a specific part that makes a semi-automatic rifle fire fully automatic when placed into the weapon.
United States Attorney Peter J. Smith stated that the charge is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police. Assistant United States Attorney John Gurganus is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 10 years’ imprisonment, a three year term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Portland Man Sentenced to Ten Years in Prison for Sex Trafficking of a MinorRead the Press Release
PORTLAND, Ore. – U.S. District Judge Michael H. Simon sentenced Isaiah Michael Simpson, 30, of Portland, Oregon, to 120 months in prison for sex trafficking of a minor. Simpson will be required to serve five years on supervision following his release from prison, and will be required to register as a sex offender. Simpson will serve his sentence concurrently with a 5-15 year sentence imposed in November 2014 in state court in Las Vegas, Nevada, for carrying a concealed firearm.
Simpson pled guilty in December 2014 to trafficking a minor for the purpose of prostitution for a one-week period in 2013. According to documents filed in the case, Simpson was also responsible for trafficking three adult women, including his wife, between 2009 and 2013. Simpson would demand that the women make more money from prostitution before they could stop working for the night, and told his wife in a text message to “stay on your money till you pass out exhausted.” The term “stay on your money” is known to law enforcement to mean “continue to engage in prostitution” to those in the prostitution industry.
“The commercial sexual exploitation of children violates federal sex trafficking laws, as does sex trafficking of adult women by force and coercion, and is a heinous offense,” stated Acting U. S. Attorney Billy J. Williams. “Anyone who traffics a child or uses coercion to compel prostitution in the District of Oregon will be prosecuted and face lengthy mandatory prison sentences.”
This case stemmed from a coordinated investigation by members of the FBI’s Child Exploitation Task Force, including the FBI and the Portland Police Bureau. The FBI’s Child Exploitation Task Force marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims. The case was prosecuted by former Assistant U.S. Attorney Stacie Beckerman, who was recently appointed as a United States Magistrate Judge. Assistant U.S. Attorney Jane Shoemaker, Chief of the Violent Crimes Unit, handled the sentencing.
Pittsburgh Man Charged with February Robbery of First Commonwealth Bank in MunhallRead the Press Release
PITTSBURGH – A Pittsburgh man has been indicted by a federal grand jury in Pittsburgh on a charge of bank robbery, United States Attorney David J. Hickton announced today.
The one-count indictment named Brian Guiney, 42, as the sole defendant.
According to the indictment, on Feb. 7, 2015, Brian Guiney robbed the First Commonwealth Bank in Munhall, Pa.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Munhall Police Department, and the Allegheny County Sheriff’s Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Receipt of Child PornographyRead the Press Release
Tony Myers, 29, of Philadelphia, Pennsylvania, was charged by Indictment, unsealed yesterday, with two counts of receipt of child pornography and one count of possession of child pornography announced United States Attorney Zane David Memeger. The indictment alleges that on or about August 7, 2013, February 16, 2014 and April 2, 2014, Myers received and possessed images of child pornography.
If convicted the defendant faces a maximum possible sentence of fifty years in prison and a mandatory minimum sentence of five years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Lakeland Market Sentenced to Federal Prison for Food Stamp FraudRead the Press Release
Tampa, Florida – United States District Judge Susan C. Bucklew today sentenced Randolph Goosby (53, Lakeland) to two years in federal prison for conspiracy to commit wire fraud, in connection with providing cash in return for food stamps. The Court also ordered Goosby to forfeit $4,312.35 seized from his business bank account, which was traceable to proceeds of the offense, and entered a money judgment in the amount of $782,291.65, the proceeds of the fraud. He pleaded guilty on January 8, 2015.
According to court documents, Goosby was the sole owner of 8th Street Supermarket in Lakeland, which accepted Electronic Benefit Transfer or “EBT” cards. EBT cards are used by individuals who participate in the Supplemental Nutrition Assistance Program (SNAP) to make food purchases. The 8th Street Supermarket was known as a place where SNAP participants could go to exchange EBT funds for cash, also known as “cash back.” This is specifically prohibited under the SNAP program. Goosby charged SNAP recipients 50 cents for every dollar that he provided as part of this illegal “cash back” scheme.
The 8th Street Supermarket did not use barcode scanners to aid in the checkout process, and there were no carts or baskets available for customers to carry purchases while inside the store. Rather, there was one cash register with a small counter. Most of the store’s interior space was either used for storing miscellaneous items or was unused. It was often closed during normal business hours and appeared to have virtually no legitimate food customers. Between November 2010 and July 2014, the 8th Street Supermarket conducted more than 11,000 SNAP EBT transactions totaling $964,390. From March 2011 to July 2014, it exceeded the average redemptions of the four closest SNAP-authorized convenience stores by $786,604.
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General, the Federal Bureau of Investigation, the Polk County Sheriff’s Office, and the Lakeland Police Department. It was prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Mark Bini.
Northern Arapaho Woman Sentenced in New Mexico for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Tarasina Wallowingbull, 28, a member of the Northern Arapaho Tribe of Fort Washakie, Wyo., who currently resides in Albuquerque, N.M., was sentenced this morning to two years of probation for her child abuse conviction.
Wallowingbull was arrested on July 29, 2014, on a criminal complaint charging her with assault resulting in serious bodily injury. According to the criminal complaint, on June 11, 2014, Wallowingbull crashed her vehicle in San Felipe Pueblo in Sandoval County, N.M., while driving under the influence of alcohol. A young child was ejected from Wallowingbull’s vehicle during the single-vehicle crash and sustained serious injuries.
On Oct. 20, 2014, Wallowingbull pled guilty to a felony information charging her with abuse of a child in Indian County. In entering her guilty plea, Wallowingbull admitted placing a child under the age of 18 years in a situation that endangered the child’s life or health.
This case was investigated by the Southern Pueblos and Laguna Agencies of the BIA’s Office of Justice Services, and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
North Platte Man Sentenced for Production of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Billy Joe Schrader, 32, formerly of North Platte, Nebraska, was sentenced today in Lincoln, Nebraska, to 30 years in prison by Senior United States District Judge Richard G. Kopf, for producing child pornography. After his release from prison Schrader will serve an additional 25 years under supervised release, and be required to register as a sex offender for the remainder of his life.
In November of 2013, one of the child victims in this case, (there were three), revealed to a therapist that he believed another child had been sexually assaulted by Schrader. The information was reported to the North Platte Police Department and a search warrant was obtained for Schrader's residence. At the time the search was performed, law enforcement officers seized computer equipment and other items. Schrader and a co-defendant were also interviewed at that time and both were subsequently arrested and lodged in jail. After a forensic examination of the equipment seized during the search warrant, over 75,000 images of child pornography produced by Schrader and his co-defendant were identified.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the North Platte Police Department and the Lincoln County Sheriff's Office and prosecuted jointly with the Nebraska Attorney General's Office.
Norfolk Woman Sentenced for Conspiring to Defraud the GovernmentRead the Press Release
Cashed over two million dollars in fraudulent income tax refund checks
NORFOLK, Va. – Tanya Evans, 34, of Norfolk, was sentenced today to 87 months in prison, followed by 3 years of supervised release for conspiracy to defraud the government with respect to claims. Evans was also ordered to pay $2,087,571.14 in restitution to the Internal Revenue Service.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigations, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith.
Evans waived indictment and pled guilty to criminal information on December 30, 2014. According to court documents, she and a co-conspirator’s scheme was discovered in 2013 after a local check cashing business noticed that she had cashed over $2 million in U.S. Treasury checks. Evans indicated she was paid her $200 per check to cash the treasury checks in violation of the company’s policies. A subsequent IRS investigation determined that she cashed 640 checks that totaled just over two million dollars in fraudulent income tax refunds.
This case was investigated by the Criminal Investigations Division of the Internal Revenue Service. Assistant United States Attorney Joseph L. Kosky is prosecuted the case on behalf of the United States.
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. 2:14cr174.
Nashville Man Sentenced to Federal Prison for Stealing Donations from Area ChurchesRead the Press Release
Kenneth James Stopkotte, 49, of Nashville, Tenn., was sentenced yesterday by Senior U.S. District Court Judge William J. Haynes to serve 45 months in prison, followed by three years of supervised release, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Stopkotte was also ordered to pay restitution to the victims in the amount of $169,978.86.
Stopkotte was indicted on March 6, 2014, on charges of bank larceny, access device fraud, money laundering and aggravated identity theft and pleaded guilty in September 2014 to one count of bank larceny, one count of access device fraud and one count of money laundering.
In his plea agreement, Stopkotte admitted that between August 27, 2012, and February 28, 2013, he stole approximately $181,608.52 in donation checks from the mailboxes of numerous churches in the Nashville area, which he deposited into accounts that he controlled at SunTrust Bank, First Tennessee Bank, Regions Bank, the Bank of Nashville and the Navy Federal Credit Union.
Additionally, Stopkotte admitted to transferring approximately $70,000 of the stolen funds from these various bank accounts to an account that he controlled at USAA Federal Savings Bank, then laundering approximately $48,000 of the money by nine wire transfers of varying amounts into an account titled Black Marlin Industries located at the Federal Bank of the Middle East in Nicosia, Cyprus.
Finally, Stopkotte admitted that he used a credit card that had been issued to another person to charge approximately $13,631.45 in payments and other things of value.
In determining Stopkotte’s sentence, Judge Haynes applied enhancements for the number of victims and the use of sophisticated means on the money laundering count. Judge Haynes ordered Stopkotte’s sentence to be served concurrently with a four year sentence that Stopkotte received in Williamson County, Tennessee, in a related case involving theft of checks from a church.
The investigation was conducted by the U.S. Secret Service, the Murfreesboro, Tenn. Police Department, the Franklin, Tenn. Police Department, the Brentwood Tenn. Police Department and the Madeira, Ohio Police Department. Assistant U.S. Attorney Sandra G. Moses represented the United States.
Myrtle Beach Attorney Pleads to Money LaunderingRead the Press Release
Contact Person: Bill Day (803) 929-3000
Evans previously pled guilty for his involvement in the Ponzi scheme related to this case and was sentenced to 7 years imprisonment. Weaver pled guilty to mail fraud and is waiting to be sentenced.
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Larkin Thaddeus Viers, age 36, of Myrtle Beach, South Carolina has entered a guilty plea in federal court in Florence, to money laundering, a violation of 18 U.S.C. § 1957. United States District Judge Brucie Howe Hendricks of Charleston accepted the guilty plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Marlon Weaver was the president and owner of Weaver Company, Inc., a construction company which was located in Conway, SC. In 2008, the company was awarded a contract with the South Carolina Department of Transportation [SCDOT], to perform paving and asphalt operations on a road construction project on Interstate 95. Weaver Co. was required to supply a performance and payment bond and general indemnity agreement in order to work on the project. SafeCo Insurance Company of America sold, wrote and acted as a surety on the bond. SafeCo required that Marlon Weaver agree to reimburse them if SafeCo suffered any losses as a result of issuing bonds to the company. Weaver provided a financial statement reflecting assets that SafeCo would be entitled to if Weaver Co. caused losses to SafeCo. Reflected on this financial statement were Weaver’s investment in a company, Gold & Silver, LLC, and his one-fifth interest in Bucks Port Marina held by Weaver Five, LLC.
On November 20, 2009, the contractor for the SCDOT informed Weaver and SafeCo that it declared Weaver Co. in default of the contract under the bond resulting in SafeCo being required to pay approximately $6,000,000.00 to SCDOT. Weaver back-dated documents to make it appear that he had transferred his interest in the Gold and Silver, LLC and Bucks Port Marina to his daughters on September 1, 2009, prior to defaulting on the project. In fact, Weaver retained control of the assets at all times. Weaver mailed these back-dated, fraudulent documents to SafeCo’s attorney, who was representing the insurance company in a civil suit against Marlon Weaver and others. These documents were received by SafeCo on or about December 18, 2009.
Gold & Silver, LLC, was an investment business owned and operated by Archie Evans, which invested in the futures market. To make it appear that Weaver had transferred his investment in Gold & Silver to his daughter prior to SafeCo incurring losses, Evans agreed to back-date documents to reflect that Weaver’s investment was transferred to the daughter on September 1, 2009. These documents were also mailed to SafeCo’s attorney on April 26, 2010.
Weaver hired Thad Viers to represent him in the civil case filed against him by SafeCo. Weaver informed Viers that he was trying to hide his assets from SafeCo. On December 1, 2009, Weaver and Viers entered into a written legal fee/service contract which reflects a nonrefundable retainer fee of $500,000. Weaver gave Viers $500,000 in the form of two cashier’s checks, one in the amount of $490,000 and the other in the amount of $10,000. Only the $10,000 check was payment for the retainer fee. The $490,000 was money that Weaver was attempting to conceal from SafeCo. The source of the $500,000 was funds that Weaver had pulled out of Weaver Company to prevent SafeCo from getting it. Viers deposited the $490,000 cashier’s check into his operating account at Anderson Brothers Bank on December 4, 2009, then immediately wrote a check to Archie Evans Ministries for $400,000. The $400,000 was additional money that Weaver was secretly investing with Evans’ company, Gold & Silver. The difference of $90,000, Viers was to deposit into his campaign account. After earning approximately $30,000 in legal fees, Viers returned the remainder of the funds to Weaver.
On January 21, 2010, BEJ, LLC, was formed and incorporated to conceal the proceeds from the sale of Weaver’s interest in the marina he had previously pledged as collateral to SafeCo. The marina was sold in February 2010 and Weaver received approximately $501,000. Weaver laundered these funds through several bank accounts to include a First Citizens bank account set up in the name BEJ, LLC. Between May 18, 2010 and July 22, 2010, Weaver withdrew $400,000 from the BEJ, LLC. account of which approximately $375,000 was converted to cashier’s checks and cashed. This cash was given to Archie Evans in increments which Evans structured into his bank accounts in increments of less than $10,000.00, to avoid bank filings.
In January 2011, Viers set up a trust account at the First Citizens Bank, at Weaver’s request, and agreed to have funds wired or deposited into the account by Evans. Once the funds were credited to the account, Viers contacted the bank to authorize withdrawal of the funds by Weaver. Each withdrawal authorized by Viers was for $10,000 or more. Weaver withdrew the funds purchasing numerous cashier’s checks just under the $10,001 bank reporting requirement, ranging from $7,500 to $9,500. Weaver would then cash these cashier’s checks at various branches and give the currency back to Archie Evans, in increments of $25,000 to $50,000, so that Evans could structure deposits into his bank accounts. This cycle of banking activity was repeated numerous times. Between 1/21/2011 and 10/3/2011, $692,000 was credited to Vier’s First Citizen’s Trust account on behalf of Weaver which was sourced by Evans’ bank account. Of the amount credited, 375,000 was proceeds from the sale of the marina.
During the course of this conspiracy, Viers either knew the funds involved were proceeds of some criminal activity, or he was aware of a high probability the funds were the proceeds of some criminal activity and he deliberately avoided learning of the activity, i.e. he deliberately made himself blind to that fact. The funds involved were proceeds of criminal activity as Weaver committed mail fraud when he mailed SafeCo’s attorney back-dated documents concerning the sale of the marina and his investments with Gold & Silver.
Mr. Nettles stated the maximum penalty for money laundering is imprisonment for 10 years and/or a fine of $250,000. The case was investigated by agents of the Internal Revenue Service and the United States Secret Service. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case. #####Monroe County, Kentucky, Farmer Charged with Crop Insurance FraudRead the Press Release
LOUISVILLE, Ky. - A Monroe County, Kentucky farmer was charged in a federal Information today, with crop insurance fraud announced Acting U.S. Attorney John E. Kuhn, Jr.
According to the Information, Tracy E. Dillard, 45 of Fountain Run, Kentucky aided and abetted by others, knowingly made false statements and reports on applications for insurance. Dillard allegedly made false statements for the purpose of influencing the actions (insurance payments) of the Federal Crop Insurance Corporation and Producers Agriculture Insurance Company, a company insured by the Federal Crop Insurance Corporation.
The alleged violations occurred between August 26, 2010,and March 10, 2011, in the Western District of Kentucky, Allen County, Kentucky, and elsewhere.
If convicted at trial, Dillard faces no more than 30 years in prison, a fine of $1,000,000 and a five year period of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the United States Department of Agriculture (USDA) Office of Inspector General (OIG).
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Mexican National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EFREN FLORES-MELCHOR, age 40, a Mexican citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Jay C. Zainey sentenced FLORES-MELCHOR to five months imprisonment followed by one year of supervised release, and a $100 special assessment. Following his incarceration, FLORES-MELCHOR will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about November 7, 2014, St. Charles Parish deputies arrested FLORES-MELCHOR for Driving While Intoxicated. The deputies then contacted agents of the U.S. Immigration and Customs Enforcement, who discovered that FLORES-MELCHOR was a Mexican national who had been deported from the United States on three previous occasions. Agents also learned that FLORES-MELCHOR had amassed three DWI convictions while he was illegally present in the United States. ICE agents arrested FLORES-MELCHOR and placed an immigration hold on him.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Manhattan U.S. Attorney’s Office Closes Investigation into the Death of Danroy Henry, Jr.Read the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the evidence does not support pursuing federal criminal charges in connection with the fatal shooting of Danroy Henry, Jr. Mr. Henry, a student at Pace University, was killed during an encounter with police officers from the Pleasantville and Mount Pleasant Police Departments in the early morning of October 17, 2010. Federal prosecutors informed Mr. Henry’s parents of this decision earlier today.
Federal prosecutors thoroughly reviewed the evidence regarding the events that led to and immediately followed Mr. Henry’s shooting, in order to determine whether a prosecutable violation of the federal criminal civil rights laws had occurred. To prove a violation of the federal criminal civil rights statutes, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right, meaning that the officer acted with the deliberate and specific intent to do something the law forbids. This is one of the highest standards of intent imposed by law, and is different and higher than the intent standard under the relevant state statutes. Neither accident, mistake, fear, negligence nor bad judgment is sufficient to establish a willful federal criminal civil rights violation.
After conducting an exhaustive examination of all of the evidence, including consultation with experts, career federal prosecutors determined that the evidence does not establish the exacting standard of criminal intent required for a federal criminal civil rights prosecution.
The evidence reveals the following: At approximately 11:30 p.m. on the night of October 16, 2010, Mr. Henry drove himself and several friends to Finnegan’s Grill, located in the Thornwood Shopping Center in Thornwood, New York. Shortly after 1:00 a.m., a fight broke out among several bar patrons. Mr. Henry was not involved in this altercation. As a result of the fight, however, the owner of Finnegan’s Grill closed the establishment for the evening, ejected all of the patrons, and called the police. Police officers from both the Mount Pleasant and Pleasantville Police Departments responded to the scene. Mr. Henry departed the bar, retrieved his car from the parking lot, and pulled into a fire lane in front of Finnegan’s Grill while waiting for several friends. A Mount Pleasant police officer knocked on the window of Mr. Henry’s car, at which point Mr. Henry pulled out of the fire lane. The Mount Pleasant police officer shouted for Mr. Henry to stop. Mr. Henry proceeded to drive on the access road leading from the Thornwood Shopping Center. An officer with the Pleasantville Police Department stepped in front of Mr. Henry’s car. Although there are inconsistencies in the witness accounts regarding the chronology of certain subsequent events, the weight of the evidence indicates that Mr. Henry’s car was braking when it struck the Pleasantville officer, who wound up on the hood of the car, and that the Pleasantville officer then fired through the windshield into the car, wounding one of the passengers and killing Mr. Henry. A toxicology report from the state criminal investigation, which some parties have disputed, indicated that Mr. Henry had a blood alcohol level of .13 at the time of his death.
Several considerations have persuaded federal prosecutors that they cannot prove beyond a reasonable doubt that the Pleasantville police officer intentionally violated the civil rights of Mr. Henry. First, the incident happened within a matter of seconds, without any prior interaction or relationship between the Pleasantville officer and Mr. Henry that could lead a reasonable juror to believe that the officer had a motive to violate Mr. Henry’s civil rights. Second, a reasonable person considering the totality of the evidence would likely conclude that the car driven by Mr. Henry struck the officer and injured him before the officer fired his weapon. This resulted in the officer being positioned hazardously on the hood of a moving vehicle, requiring him to make a split-second decision under conditions of extreme danger, conditions under which the law generally allows latitude to a police officer’s judgment. Third, while portions of isolated testimony from certain of the witnesses at the scene might suggest that the Pleasantville officer acted with bad intent, there is not enough consistent, credible witness testimony to prove beyond a reasonable doubt that the officer acted with the requisite willfulness to deprive Mr. Henry of his constitutional rights. Finally, although racial animus need not be shown to establish a deprivation of rights under color of law, the evidence indicated that because of the darkness, the glare of the headlights and streetlamps, and the condensation on the windows, the Pleasantville officer would in all likelihood not have been able to see who the driver was or the driver’s race.
The Office also examined the evidence regarding the immediate aftermath of the shooting, and the failure of the officers on the scene, which was chaotic, to administer medical care to Mr. Henry as they waited for the EMT crews they had called for to arrive. Here, too, the Office could not conclude that the failure of the officers to provide immediate medical care under the circumstances amounted to a willful federal criminal civil rights violation.
The Office also considered whether there had been a criminal violation of the civil rights of Brandon Cox, who was injured by a bullet as he rode in the passenger side seat in Danroy Henry’s car. This injury arose out of the same exact facts that led to Mr. Henry’s shooting, and for the same reasons, the evidence does not support pursuing federal criminal charges in connection with the injury of Mr. Cox.
This Office analyzed these issues under the standard applicable to criminal cases, which is proof beyond a reasonable doubt. The Office expresses no view regarding any claims made against any party under the standard applicable to civil cases, which is proof by a preponderance of the evidence.
Accordingly, this Office’s investigation into Mr. Henry’s death has been closed.
Mr. Bharara expressed his deep sympathy to the family of Mr. Henry for their tragic loss.
Manager of Clothing Factory Indicted for Offering Bribe to Federal Labor Investigator in Exchange for Closing Wage InvestigationRead the Press Release
LOS ANGELES – A federal grand jury today indicted the general manager of a La Puente garment factory on charges of offering to pay bribes to an investigator with the United States Department of Labor in exchange for the investigator closing an investigation into wage violations.
Howard Quoc Trinh, 41, of Arcadia, the manager of Seven-Bros Enterprises, is accused in the indictment of bribery of a public official.
The indictment charges Trinh with offering to pay $10,000 in bribes to a Department of Labor Wage and Hour investigator.
The indictment also alleges that Trinh offered the bribe last month to secure the release of a hold known as a “Hot Goods” objection that had been placed on a shipment by the investigator.
As part of the bribery scheme, Trinh actually paid the investigator $3,000, according to a criminal complaint previously filed in this case.
According to the affidavit in support of that complaint, the investigator was investigating Seven-Bros for violating the Fair Labor Standards Act (FLSA), which sets standards for minimum wage and overtime pay. The Labor Department Wage and Hour investigator led a team that conducted an unannounced visit to Seven-Bros on March 10. The investigation into wage violations covered a period from May 2012 through March 10, 2015, and found that Seven-Bros owed approximately $100,000 to compensate employees for FLSA violations over that period. According to the affidavit, the investigator returned to Seven-Bros on March 18, at which time Trinh said he did not owe his employees any back wages and that he wanted to “take care” of the investigator.
In response to Trinh’s statements, the Labor Department’s Office of Investigator General (OIG) initiated an investigation and outfitted the investigator with recording equipment. On the evening of March 18, during a recorded meeting, Trinh allegedly offered the investigator $10,000 to close out the investigation without finding any violations and to life the Hot Goods objection.
The next day, during another recorded meeting, Trinh gave the investigator an initial payment of $3,000 in a manila envelope, according to the affidavit.
The criminal complaint was filed on March 20, and Trinh was arrested by OIG special agents. At his initial court appearance, Trinh was ordered released on a $200,000 bond and was ordered to appear for an arraignment on April 17.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If he is convicted of the bribery count in the indictment, Trinh would face a statutory maximum sentence of 15 years in federal prison.
The investigation in this case was conducted by the United States Department of Labor, Office of Investigator General, Office of Labor Racketeering and Fraud Investigations.
Release No. 15-032
Leader of Heroin Distribution Ring Sentenced to 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jeffrey Anderson, age 36, of Upper Marlboro, Maryland, today to 11 years in prison, followed by five years of supervised release, for conspiring to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; and Hagerstown Police Chief Mark Holtzman.
“This investigation, initiated by the Frederick County Sheriff’s Office (FCSO), was a cooperative effort between the FCSO, HSI and our law enforcement partners,” said Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. “As a result of the cooperative efforts of our federal, state and local law enforcement partners, a large scale, multi-jurisdictional heroin trafficking organization was dismantled.”
According to his plea agreement, beginning as early as September 2013, Anderson and co-conspirator Reginald Jones worked with Rahdel Sharbaan to obtain bulk quantities of heroin from sources in New York and transport that heroin to Maryland for further distribution. Anderson would either travel to New York himself, or have Sharbaan and Jones bring the heroin and cutting agent to him in Maryland via commercial bus. With co-defendant Shawn Malley’s assistance, Anderson used stash locations to store and cut the heroin, including a storage unit in Gambrills, Maryland, and Malley’s home. Once diluted, Anderson sold the heroin in bulk to several Maryland-based dealers, including co-defendants William Robinson and Gary Barham on the Eastern shore of Maryland, and Amanda Jo Palmer in Western Maryland. According to their plea agreements, once Robinson, Palmer and Barham obtained drugs from Anderson they re-distributed the drugs in street-level quantities. Jones used the drug proceeds from Anderson to pay the source in New York.
On May 15, 2014, investigators executed search warrants, seizing: 40.1 grams of heroin, cutting agents, packaging materials and paraphernalia from the storage unit; 49 grams of heroin from Anderson’s vehicle; $2,957 in cash, drugs, multiple cell phones and digital scales from Malley’s home; and four vehicles from other co-conspirators.
Anderson admitted that during the time of the conspiracy at least one kilogram of heroin was distributed.
Six co-defendants pleaded guilty to their participation in the conspiracy and have been sentenced. Gary Barham, age 52, of Easton, Maryland, was sentenced to 11 years in prison. Co-defendants William Ulysses Robinson, age 39, of Grasonville, Maryland, was sentenced to six years in prison; Shawn Christopher Malley, age 25, of Crofton, Maryland, was sentenced to five years in prison; and Amanda Jo Palmer, age 33, of Hagerstown, Maryland, was sentenced to 29 months in prison. Finally, Rahdel Sharbaan, age 32, and Reginald Jones, age 26, both of Bronx, New York, were sentenced to two years in prison, and a year and day in prison, respectively.
United States Attorney Rod J. Rosenstein praised HSI-Baltimore, DEA, Frederick County Sheriff’s Office, Maryland State Police, Washington County Sheriff’s Office and Hagerstown Police Department for their work in the investigation and recognized the Maryland Natural Resources Police, St. Michael’s Police Department, Easton Police Department, Ocean City Police Department and Talbot County Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Knoxville, Tennessee, Man Indicted on Two Counts of Sex Trafficking by Force, Fraud and Coercion and Related Narcotics ChargesRead the Press Release
On Apr. 7, 2015, a federal grand jury in Knoxville, Tennessee, indicted Marcus Washington, 37, of Farragut, Tenn., charging him with two counts of sex trafficking by force, threats of force, fraud and coercion; conspiracy to possess with the intent to distribute a controlled substance; and possession with the intent to distribute a controlled substance.
The indictment, on file with the U.S. District Court, charges Washington with separate counts of sex trafficking by force, threats of force, fraud and coercion in relation to two victims. He is also charged with conspiring with others to possess with the intent to distribute, and the distribution of, oxycodone, a Schedule II controlled substance, and a substance containing a detectable amount of cocaine, also a Schedule II controlled substance. Lastly, Washington is charged with possessing with the intent to distribute oxycodone.
Washington faces a mandatory minimum of 15 years incarceration if convicted of either trafficking charge. Both narcotics charges carry a statutory maximum of 20 years in prison.
This case was investigated by the FBI. The Knox County Sheriff’s Office and the Knox County Attorney General’s Office provided significant support in this investigation. The case is being prosecuted by Trial Attorney Nicholas Durham of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Brooklyn Sawyers of the U.S. Attorney’s Office for the Eastern District of Tennessee.
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.
Knoxville Man Indicted on Two County of Sex Trafficking by Force, Fraud, and Coercion and Related ChargesRead the Press Release
KNOXVILLE, Tenn. – On Apr. 7, 2015, a federal grand jury returned a four-count indictment against Marcus Washington, 37, of Farragut, Tenn., charging him with two counts of sex trafficking by force, threats of force, fraud and coercion; conspiracy to possess with the intent to distribute a controlled substance; and possession with the intent to distribute a controlled substance.
The indictment, on file with the U.S. District Court, charges Washington with separate counts of sex trafficking by force, threats of force, fraud and coercion in relation to two victims. He is also charged with conspiring with others to possess with the intent to distribute, and the distribution of, oxycodone, a Schedule II controlled substance, and a substance containing a detectable amount of cocaine, also a Schedule II controlled substance. Lastly, Washington is charged with possession with the intent to distribute oxycodone.
Washington faces a mandatory minimum of 15 years in prison if convicted of either trafficking charge. Both narcotics charges carry a statutory maximum of 20 years in prison.
This case was investigated by the FBI. The Knox County Sheriff’s Office and Knox County Attorney General’s Office provided significant support in this investigation. The case is being prosecuted by Trial Attorney Nicholas Durham of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Brooklyn Sawyers of the U.S. Attorney’s Office for the Eastern District of Tennessee.
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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Ketchikan Resident Sentenced to 48 Months for Methamphetamine ConspiracyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a former Ketchikan resident was sentenced to 48 months of imprisonment for methamphetamine conspiracy.
Manuel Sanchez Hinahon, 40, of Ketchikan, Alaska, was sentenced today by United States District Court Judge Timothy M. Burgess, in Ketchikan, to 48 months of imprisonment followed by a five-year term of supervised release.
According to Assistant U.S. Attorney Jack Schmidt, who prosecuted the case, the case started as a joint investigation by the United States Postal Inspection Service (USPIS), Federal Bureau of Investigation (FBI), and the Ketchikan Police Department (KPD), who identified Hinahon as a member of a drug conspiracy to receive and distribute methamphetamine in Ketchikan, Alaska, sometime in early 2012.
In March 2012, USPIS seized a USPS Express Mail parcel addressed to Hinahon that contained 81.5 grams of actual methamphetamine. On March 24, 2012, USPIS and KPD agents conducted a controlled delivery of the parcel to Hinahon and subsequently executed a search warrant at Hinahon’s residence in which the parcel was recovered along with drug proceeds, drug paraphilia, scales, money gram receipts, and deposit slips of drug proceeds to another co-conspirator. A search of Hinahon’s cell phone also contained numerous messages related to drug trafficking.
In sentencing Hinahon, Judge Burgess noted the seriousness of the underlying offense and the need to deter the defendant, as the reasons for the sentence he imposed.
Ms. Loeffler commended the United States Postal Inspection Service, Federal Bureau of Investigation and the Ketchikan Police Department who conducted the investigation leading to the successful prosecution in this case.
Ketchikan Man Sentenced for Receipt and Possession of Explosive Materials by A FelonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that a Ketchikan man was sentenced today in federal court in Ketchikan for receipt and possession of explosive materials by a felon.
Joseph Duane Brown, 40, of Ketchikan, Alaska, was sentenced today by United States District Court Judge Timothy M. Burgess, to a five-year term of probation, 30 days in a halfway house, and 300 hours of community work service.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from an investigation conducted by the Ketchikan Police Department (KPD) related to the detonation of a series of explosive devices inside the Ketchikan Tunnel on July 4, 2013. The explosions temporarily knocked out the central communications records management system for the KPD dispatch center, as well as scared the driver of a vehicle who drove through the tunnel, as their vehicle was “rattled” during the explosion. The driver stated that the explosion was not a mere firework, but something “super dangerous.”
The investigation was later transferred to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATFE). They determined that the explosive devices were perchlorate explosive mixture (seal bombs) and cap sensitive ammonium nitrate mixture (binary explosive mixture) that is typically used in exploding targets. The investigation revealed that Joseph Duane Brown, a convicted felon, had assembled at least 20 one-pound explosive devices and daisy chained them together with a common fuse. Brown used the perchlorate explosive mixture (seal bombs) as a detonator to set off the one-pound charges of cap sensitive ammonium nitrate mixture (binary explosive mixture). Brown admitted that he purchased and assembled the ingredients to make the explosive devices and he was the one responsible for setting off the devices inside the Ketchikan Tunnel.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant and others, as reasons for imposing the five-year term of probation.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATFE) and the Ketchikan Police Department for the investigation leading to the conviction in this case.
Jersey City, New Jersey, Fire Inspector Sentenced to One Year and One Day in Prison for Accepting Bribes in Return for Official Assistance with Prostitution BusinessesRead the Press Release
NEWARK, N.J. – A Jersey City fire inspector was sentenced today to one year and one day in prison for accepting bribes in return for his assistance in providing prostitution businesses with certificates of occupancy and advance notice of inspections or law enforcement activity, U.S. Attorney Paul J. Fishman announced.
Phillip Procaccino, 56, of Belleville, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of attempting to obstruct, delay and affect interstate commerce by extortion under color of official right. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Procaccino admitted that on Oct. 23, 2013, he accepted $2,500 in exchange for his official assistance in obtaining a certificate of occupancy for a massage parlor, which also operated as a prostitution business. Procaccino also offered to provide notice of impending inspections from Jersey City authorities so the owner and employees could preemptively hide evidence of prostitution.
In addition, Procaccino agreed to take 10 percent of future profits from a separate prostitution business in exchange for a certificate of occupancy and one day’s advance notice of any police activity targeting the business. Both prostitution businesses were located in Jersey City.
In addition to the prison term, Judge Hayden sentenced Procaccino to serve one year of supervised release.
U.S. Attorney Fishman praised special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Richard M. Frankel, and criminal investigators from the U.S. Attorney’s Office in Newark for their work leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Vikas Khanna and Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Paul B. Brickfield Esq., River Edge, New Jersey
Jefferson City Man Pleads Guilty to Distributing Child Porn OnlineRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., man has pleaded guilty in federal court to distributing child pornography over the Internet.
Dominic J. Veit, 39, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Monday, April 6, 2015.
By pleading guilty, Veit admitted that he distributed child pornography over the Internet on Jan. 14, 2011. Veit also pleaded guilty to possessing child pornography from Jan. 14 to March 3, 2011.
An FBI agent in New York identified Veit’s computer as sharing child pornography on the Internet through a peer-to-peer file-sharing network during a national investigation, Innocent Images. Law enforcement officers executed a search warrant at Veit’s residence on March 3, 2011, and found a computer in his bedroom that contained hundreds of images of child pornography, including images of child bestiality and movies of child pornography. The National Center for Missing and Exploited Children confirmed that there were 43 known series of identifiable child pornographic images contained on Veit’s computer.
Veit must forfeit to the government a laptop computer, a computer tower, four hard drives and other computer equipment that was used to commit the offense.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictment Charges West Haven and Hartford Residents with Narcotics, Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an 11-count indictment today charging ANTHONY SABATO, 57, of West Haven, and MIGUEL JOEL ROMAN, 25, of Hartford, with narcotics trafficking offenses. SABATO is also charged with illegally possessing a firearm.
This matter stems from an investigation being conducted by the FBI’s New Haven Safe Streets Task Force, the West Haven Police Department and the Darien Police Department. The investigation employed the use of an undercover law enforcement officer.
As alleged in previously-filed court documents, between January and March 2015, the undercover officer purchased crack cocaine from SABATO and ROMAN. SABATO and ROMAN also negotiated the purchase of a handgun from the undercover officer, and arranged to sell him two ounces of crack cocaine at a price of $2,000 per ounce. SABATO and ROMAN were arrested on March 24, 2015, after they met the undercover officer at SABATO’s West Haven home to consummate the crack cocaine and firearm transactions.
The indictment charges SABATO and ROMAN with one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”), an offense that that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. SABATO and ROMAN are also charged with two counts of possession with intent to distribute and distribution of 28 grams or more of cocaine base, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years on each count, and four counts of possession with intent to distribute and distribution of cocaine base, an offense that carries a maximum term of imprisonment of 20 years on each count.
In addition, the indictment charges SABATO with one count of maintaining a drug-involved premises within 1000 feet of a school, an offense that carries a maximum term of imprisonment of 20 years, two counts of possession with intent to distribute and distribution of oxycodone, an offense that carries a maximum term of imprisonment of 20 years on each count, and one count of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter has been assigned to U.S. District Judge Vanessa L. Bryant in Hartford.
The FBI’s New Haven Safe Streets Task Force includes personnel from the FBI, West Haven Police Department, New Haven Police Department, Milford Police Department and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
Illegal Alien Sentenced to Prison for Identity TheftRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced that Jose Alegria-Garcia, 56, of Anchorage, was sentenced today to 29 months in federal prison. Alegria-Garcia was arrested in November 2014 and charged with unlawfully using the name and identity of Carlos Velazquez to work and live illegally in the United States.
Alegria-Garcia, a citizen of El Salvador, has been in the United States illegally since the early 1980s. In January 2015, he pled guilty to one count of unlawful use of a social security number, one count of making a false claim of United States citizenship, and one count of aggravated identity theft in connection with an application for unemployment benefits from the State of Alaska.
United States District Court Judge Sharon L. Gleason sentenced Alegria-Garcia to the five months imprisonment he has already served on the social security number and false citizenship charges, and also imposed a mandatory two-year consecutive term for aggravated identity theft. Judge Gleason also ordered Alegria-Garcia to pay restitution to the State of Alaska, Department of Labor and Workforce Development, in the amount of $5,336.
In imposing the sentence, Judge Gleason mentioned the impact on the victim, as well as the defendant’s long criminal record spanning more than thirty years. The victim, a U.S. national living in New York, stated that he found it difficult to obtain the benefits he was entitled to through social security because government records indicated that he was working in Alaska. In fact, Alegria-Garcia was working in Alaska, having stolen the victim’s identity.
The case was investigated by the Social Security Administration, Office of the Inspector General; Immigration and Customs Enforcement, Homeland Security Investigations; and the State of Alaska, Department of Labor and Workforce Development.
Hudson County, New Jersey, Man Admits Selling 33 Firearms IllegallyRead the Press Release
NEWARK, N.J. – A convicted felon from Jersey City, New Jersey, today admitted selling 33 firearms to a confidential informant, U.S. Attorney Paul J. Fishman announced.
Bernardo Guzman, 27, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of possessing firearms while being a previously convicted felon.
According to documents filed in this case and statements made in court:
Guzman admitted that on Nov. 14, 2013, he met with an individual in the parking lot of a grocery store in Fort Lee, New Jersey, to illegally sell three handguns. Guzman also admitted that from June 2013 through February 2014, He sold approximately 33 firearms and hundreds of rounds of ammunition to a confidential informant. The firearms sold by Guzman consisted of semiautomatic weapons, sawed-off shotguns, assault-style rifles and firearms with high-capacity magazines. Some of the firearms had obliterated serial numbers. All of the weapons and ammunition are now in the custody of law enforcement.
The charge of possessing a firearm while being a convicted felon carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 11, 2015.
The government is represented by Assistant U.S. Attorney Elizabeth M. Harris of the Organized Crime/Gangs Unit of the Criminal Division in Newark.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge George P. Belsky; special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly; and the Jersey City Police Department with the investigation leading to today’s plea.
Defense counsel: Julian Wilsey Esq., Livingston, New Jersey
guzman_bernardo_information.pdf
Houston Men Get Significant Sentences for Bank RobberiesRead the Press Release
HOUSTON – Earnest Elonzo Hamilton, 46, and Kevin Joseph Riggs, 44, both of Houston, have been ordered to federal prison following their convictions related to the aggravated robbery of two area Wells Fargo banks, announced United States Attorney Kenneth Magidson.Both men entered guilty pleas to two counts of aggravated bank robbery and one count of brandishing a firearm during a crime of violence on Aug. 12, 2014.
Today, U.S. Circuit Judge Gregg Costa, sitting by designation, handed Hamilton a sentence of 96 months for the aggravated bank robberies which will be served consecutively to another 10 years for brandishing a firearm during commission of the crimes. He was further ordered to serve an additional 24 months for a supervised release violation from a prior bank robbery, resulting in a total sentence of 20 years in federal prison. Riggs was ordered to serve a 97-month-term for the aggravated bank robberies as well as another seven years for brandishing a firearm to be served consecutively resulting in a total 181 months of federal imprisonment. They must also serve five years of supervised release following completion of their prison terms. At the hearing, the court noted that although both were convicted in the two robberies, they were actually held accountable for a total 17 robberies in the Houston area and were ordered to pay restitution as part of their sentence.
Riggs and Hamilton were arrested following the July 25, 2013, robbery of the Wells Fargo at 1681 W FM 646 in League City. They also plead guilty to robbing the Wells Fargo Bank at 2202 FM 2920 in Spring on Feb. 13, 2013. Employees at each of the banks described being threatened at gun point and ordered to comply with the robbers’ demands.
Following the July 25, 2013, robbery, witnesses in the bank reported seeing the robbers leave in a red minivan and gave descriptions of them and their clothing. A responding officer located the minivan and began pursuit. Soon after, the two suspects abandoned the vehicle while it was rolling to a stop and fled on foot. Hamilton was seen dropping one gun while he got out of the vehicle as well as a second pistol, black ski mask and money near a gutter. The sweatshirt and gloves worn by Riggs was also recovered in a backyard nearby. Authorities captured Riggs as he attempted to leave a subdivision on foot, while Hamilton was found hiding in some bushes.
Officers discovered that the minivan and one of the pistols were stolen.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office in conjunction with the League City Police Department. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
Hancock County, WV man charged with heroin trafficking, firearms offensesRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned an indictment today charging Timothy J. Jackson, 56, of New Cumberland, West Virginia, with drug trafficking and firearms offenses, United States Attorney William J. Ihlenfeld, II, announced.
Jackson is alleged to have been in possession of heroin and a stolen semi-automatic pistol in Hancock County, West Virginia in December 2014.
Jackson is charged with:
• One count of “Possession of a Stolen Firearm,” for which he faces up to 10 years in prison and a fine of up to $250,000.00, and
• One count of “Possession with Intent to Distribute Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government. The Hancock, Brooke, Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms and Explosives are leading the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Greensburg Man Pleads Guilty to Child Pornography Possession ChargeRead the Press Release
PITTSBURGH - A resident of Greensburg, Pa., pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
John Mallory, 61, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, the court was advised that Mallory was found to be in possession of visual depictions, namely images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge Cohill scheduled sentencing for July 21, 2015, at 11 a.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. However, because Mallory was convicted of a federal offense in 1992 for receiving child pornography, he faces a mandatory minimum of 10 years imprisonment for the current charges.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
Homeland Security Investigations and the United States Postal Inspection Service conducted the investigation that led to the prosecution of John Mallory.
Gilbert Navarro and Juan Delgado Plead Guilty to Drug Trafficking and Money LaunderingRead the Press Release
United States Attorney Deborah R. Gilg announced that Gilbert Navarro, age 42 years and from Omaha, Nebraska, and Juan Delgado, age 40 years and from Council Bluffs, Iowa, pleaded guilty to drug trafficking and money laundering charges today. Navarro and Delgado were charged together in a superseding indictment, along with five other co-defendants. The Honorable Joseph F. Bataillon, Senior United States District Court Judge, presided over the change of plea hearings.
Navarro pleaded guilty to a charge of conspiracy to distribute 50 kilograms or more of marijuana, and also to conspiracy to commit money laundering. The charge of conspiring to distribute 50 kilograms or more of marijuana is punishable by up to 20 years imprisonment, a fine of up to $250,000, and at least 3 years of supervised release following any term of imprisonment. Navarro’s sentencing hearing is scheduled for August 7, 2015.
Juan Delgado pleaded guilty to conspiracy to distribute 50 grams or more of actual or pure methamphetamine, and conspiracy to commit money laundering. The charge of conspiracy to distribute 50 grams or more of actual methamphetamine is punishable by at least 10 years imprisonment, possibly up to life imprisonment, a fine of up to $10,000,000, and not less than 5 years of supervised release following any term of imprisonment. Delgado’s sentencing hearing is also scheduled for August 7, 2015.
The charge of conspiring to commit money laundering is punishable by up to 20 years imprisonment, a fine of up to $500,000 and 3 years of supervised release following any term of imprisonment.
In addition to selling marijuana for a codefendant in this case, Navarro also purchased a 2014 Ram 1500 pickup truck in the name of his company, “D.N. Inc.” A co-defendant, whose primary source of income was drug trafficking, wished to purchase a vehicle. Because the co-defendant would not be able to obtain financing for the vehicle given his illegal occupation, the co-defendant and Navarro reached an agreement or understanding that Navarro would purchase the vehicle for the co-defendant and finance the vehicle. The co-defendant agreed to make payments to Navarro for the pickup truck, and the truck was then used exclusively by the co-defendant.
Delgado assisted a co-defendant in selling methamphetamine. Delgado also collected payment for the methamphetamine sales for the co-defendant. At times, Delgado would deposit the proceeds from those methamphetamine sales into various Wells Fargo bank accounts in Nebraska. Delgado would receive the account numbers and names on the accounts from a co-defendant in this case. Most of the time, the names on the accounts were not of people directly involved in the sale of the drugs. The purpose of those transactions was to funnel money to the suppliers of the drugs, and to do so in a manner which concealed the nature, source, ownership, or control of that money.
This case was investigated by the Greater Omaha Safe Streets Task Force, the Federal Bureau of Investigation, IRS Criminal Investigation, and the Drug Enforcement Administration. The Greater Omaha Safe Streets Task Force is comprised of the following agencies: The Omaha Police Department, The Bellevue Police Department, The LaVista Police Department, The Council Bluffs Police Department, The Douglas County Sheriff’s Office, and The Nebraska State Patrol.
Former Tampa Police Corporal Pleads Guilty to Public Corruption ChargesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Jeanette Hevel (47, Land O’ Lakes) today pleaded guilty to theft of government property. The charge carries a maximum penalty of 10 years in federal prison. Hevel has also agreed to make full restitution to the Unites States Department of Treasury, and a forfeiture money judgment in the amount of $88,504.71.
According to court documents, Hevel, a Tampa Police Department (TPD) Corporal with more than 20 years’ experience, abused her position and authority to steal 13 United States Treasury tax refund checks (totaling $88,504.71), 21 money orders (totaling approximately $10,000), and one refund anticipation loan check ($3,007.15) from inside the Department’s secure evidence storage area. The unlawful conduct occurred over an approximate 9-month period, beginning in or around September 2011 and continuing through May 2012.
To locate the checks and money orders, Hevel sometimes accessed TPD’s electronic recordkeeping system to identify investigative matters or cases in which tax refund checks and/or money orders had been logged into the Department’s secure property storage area. She then improperly used her status to “check out” the items. On other occasions, the checks and/or money orders were initially forwarded to Hevel—in her capacity as a TPD Criminal Intelligence Bureau Corporal—by Department officers or detectives for further investigation. Once Hevel had the checks and/or money orders in her possession, she enlisted others outside the Department to unlawfully cash the items and then shared the proceeds with them.
This case was investigated by the Internal Revenue Service-Criminal Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant.
Former President of Cherokee Tobacco and Firebird Manufacturing IndictedRead the Press Release
ROANOKE, VIRGINIA – The former President of Cherokee Tobacco and Firebird Manufacturing, was indicted last week by a federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke on tax and contraband cigarette charges.
Kathryn Crabtree Farley, 46, of Halifax, Va., was charged in an indictment returned under seal on Thursday, April 2, 2015 and unsealed yesterday afternoon after the defendant’s initial court appearance.
The grand jury has charged Farley with 22 counts of fraudulent refusal to pay or evasion of over $13,000,000 in federal cigarette excise tax, seven counts of violating the contraband cigarette trafficking act, seven counts of wire fraud, six counts of money laundering and five counts of engage in monetary transaction with funds from specified unlawful activity. The indictment also seeks the forfeiture of a number of assets purchased with proceeds of the offenses.
The investigation of the case was conducted by the Internal Revenue Service, the Alcohol and Tobacco, Tax and Trade Bureau, the Virginia State Police, the United States Department of Agriculture. Assistant United States Attorney Joseph Mott will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Former Executive Director of the Village of Hempstead Housing Authority and Three Others Arrested and Charged with Conspiracy to Commit Wire Fraud in Connection with Bid Rigging and Kickback SchemeRead the Press Release
Earlier today, federal agents arrested Stacey Stackhouse, the former executive director of Village of Hempstead Housing Authority (VHHA) and James Alimonos, Michael Lambros, and Demetrios Kaouris, who performed construction work for the agency, for their involvement in a wire fraud conspiracy in connection with the theft of federal funds. The defendants are scheduled to appear this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the federal courthouse in Central Islip, New York.
The charges in a criminal complaint unsealed this morning were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Christina Scaringi, Special Agent in Charge, Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), Northeast Region, and Diego G. Rodriguez, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office.
“The defendants here were entrusted to use federal funds to provide safe and affordable housing to senior citizens and low income residents. Instead, as alleged, they bypassed the rules in order to siphon taxpayer dollars into their own pockets. We are committed to fighting criminal conduct and fraud that targets vital federal programs,” stated United States Attorney Lynch.
“The charges made today prove our determination to root out corruption in public housing authorities. We in the Office of Inspector General and the Federal Bureau of Investigation will continue to collaborate and combine resources to accomplish HUD’s vital mission to ensure that decent housing is available to the country’s low and moderate-income families. We also wish to thank the U.S. Attorney’s Office for their committed and steadfast resolve in preserving the integrity of federally-funded programs,” said HUD-OIG Special Agent in Charge Scaringi.
“Bid-rigging schemes deprive issuers of a fair and just bidding process. They harm the financial integrity of programs established to help those in need, and the cost is transferred to the taxpayers. Today’s charges are proof of our continued determination to root out those whose business practices contribute to the deterioration of healthy competition in the competitive-bidding process,” said FBI Assistant Director in Charge Rodriguez.
As alleged in court filings by the government, Stackhouse was responsible for obtaining competitive bids and overseeing the work done by private contractors hired to repair and maintain various low-income properties managed by VHHA. Funding for the work is provided to the VHHA through the U.S. Department of Housing and Urban Development (HUD). Requests for bids on contracts for the work are required to be published, and Stackhouse was responsible for awarding contracts to the most qualified lowest bidder.
Instead, as part of the charged conspiracy, Stackhouse bypassed the bidding process and awarded the construction contracts to companies owned or controlled by her co-conspirators Alimonos, Lambros, and Kaouris, at prices several times greater than the true cost of the repairs. In return, Stackhouse received kickbacks from the winning contractors.
As detailed in the complaint, in one case Stackhouse awarded a contract to a construction company controlled by Alimonos and Lambros to repair a roof at a building operated by the VHHA based on bids stating that the repairs would cost $273,900 to complete. After winning the contract, Alimonos hired a different construction company to do the repair for $23,000, keeping over $201,000 in excess payments and eventually making kickback payments to Stackhouse and others totaling $25,900.
In another example, Stackhouse allegedly awarded a contract to upgrade an intercom system at a second VHHA property without competitive bidding by claiming that the repairs were required on an emergency basis. Alimonos and Kaouris, the owners of another contracting company, jointly submitted an inflated bid of $94,000 to VHHA knowing that it would be approved by Stackhouse. After the bid was approved, Alimonos demanded and received kickbacks from Kaouris totaling $44,000.
To date, the investigation has uncovered in excess of $500,000 stolen from VHHA through the charged kickback conspiracy.
If convicted, the defendants face a maximum sentence of 20 years imprisonment. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Section. Assistant United States Attorney Michael P. Canty is in charge of the prosecution.
The Defendants:
JAMES ALIMONOS
Age: 51
Residence: Bethpage, New York
DEMETRIOS KAOURIS
Age: 47
Residence: Plainview, New York
MICHAEL LAMBROS
Age: 48
Residence Queens, New York
STACEY STACKHOUSE
Age: 51
Residence: Dobbs Ferry, New York
E.D.N.Y. Docket No. 15-M-0314
Former Commander of the Pacific Grove Police Department Sentenced to 30 Months Imprisonment for Charges Stemming from Abuse of His PositionRead the Press Release
SAN JOSE- John Nyunt was sentenced today to 30 months in prison, and ordered to pay a $5,000 fine and over $10,000 in restitution for charges filed against him in connection with his position as Commander of the Pacific Grove Police Department (“PGPD”), announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Nyunt, 51, from Pacific Grove, pleaded guilty on May 13, 2014, to extortion and wire fraud. He also pleaded guilty on December 16, 2014, to possession of stolen firearms. The case involves Nyunt’s abuse of his position with the police department and his attempts to profit illegally from his position of authority.
In the May 13, 2014, plea agreement, Nyunt admitted he lied to a person who approached the PGPD to report having been a victim of electronic surveillance and stalking. Rather than investigate the alleged crime, Nyunt admitted telling the person she would have to hire a private investigator of his choosing. The individual ultimately paid $10,000 to Nyunt and the investigator for assistance, including promised security services, that never materialized. Pursuant to the plea agreement, Nyunt pleaded guilty to one count of extortion, in violation of 18 U.S.C. § 1951, and one count of wire fraud, in violation of 18 U.S.C. § 1343.
In the December 16, 2014, plea agreement, Nyunt admitted to employing a scheme by which he would profit from his illegal possession and sale of numerous stolen assault rifles, shotguns, and semi-automatic pistols. Aside from being the Commander of the PGPD, Nyunt also was an instructor at the former police academy at the Monterey Peninsula College (“MPC”). Nyunt knew the MPC was willing to donate numerous firearms to PGPD. He convinced the college he would accept the firearms on behalf of PGPD. Specifically, knowing that the PGPD did not want the firearms, Nyunt nevertheless signed a memorandum of understanding with the MPC that falsely stated he was accepting the firearms on PGPD’s behalf. Nyunt was not authorized to execute the agreement and was not authorized to accept the firearms. Then, over the course of about three years, Nyunt arranged to have most or all of the guns sold. Pursuant to the plea agreement, Nyunt pleaded guilty to possession of stolen firearms, in violation of 18 U.S.C. § 922(j).
In addition to these federal charges, on April 24, 2014, Nyunt pleaded guilty in state court to one count of dissuading a person from reporting a crime by threats of violence, one count of being an accessory after the fact to theft and burglary, and one count of being an accomplice to the burglary of a business. All three of these state offenses are felonies and Nyunt received a sentence of three years imprisonment.
Nyunt’s federal sentence was handed down by The Honorable Beth Labson Freeman, U.S. District Judge. Nyunt’s 30 month sentence will run concurrently with the remaining portion of his state court sentence. Judge Freeman also imposed a fine of $5000, restitution of $9000 to one of Nyunt’s victims, and $1,867.95 to the Pacific Grove Police Department.
Assistant U.S. Attorney Philip A. Guentert is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation, as well as investigators from the Monterey County District Attorney’s Office.
Former Altoona City Clerk Sentenced for Bank FraudRead the Press Release
WICHITA, KAN. – A former city clerk of Altoona, Kan., was sentenced Tuesday to six months in jail for bank fraud, U.S. Attorney Barry Grissom said. She also was ordered to pay more than $47,000 in restitution to the city of Altoona.
Chrystal Scherbarth, 31, Altoona, Kan., pleaded guilty to one count of bank fraud. In her plea, she admitted the crime occurred while she was employed as city clerk. She used her access to the city’s accounts at the First Neodesha Bank to commit the crime.
The city of Altoona suffered a total loss of more than $47,800. Scherbarth diverted money from the city by fraudulently increasing her own hourly pay, fraudulently paying herself for overtime, fraudulently crediting herself with unearned paid vacation and fraudulently crediting herself with unearned sick leave.
Grissom commended the FBI, the Kansas Bureau of Investigation and Assistant U.S. Attorney Aaron Smith for their work on the case.
Essex County, New Jersey, Man Admits Recording His Sexual Abuse of A GirlRead the Press Release
NEWARK, N.J. – A Newark man today admitted inducing a girl to engage in sexually explicit conduct while he took pictures and video, U.S. Attorney Paul J. Fishman announced.
Pedro Rios, 59, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to Counts One through Five and Count Seven of a superseding indictment charging him with sexual exploitation of a child and possession of child pornography.
According to documents filed in the case and statements made in court:
Rios admitted that on five separate dates between March 4, 2008 and Nov. 8, 2011, he induced a girl under the age of 12 to engage in sexually explicit conduct for the purpose of taking pictures and videos of the child’s genitals and the sexually explicit conduct. Rios’s also admitted that he possessed images of child sexual abuse on Feb. 5, 2013. Several of the videos charged in the superseding indictment depict Rios’s abuse of the child victim in the cab of a tractor trailer truck.
Each count of sexual exploitation of a child to which Rios pleaded guilty carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The possession of child pornography charge carries a maximum statutory penalty of 20 years in prison and a $250,000 fine. Rios will be required to register as a sex offender. Sentencing is scheduled for July 7, 2015.
U.S. Attorney Fishman credited special agents of the FBI Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Richard M. Frankel; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the N.J. Regional Computer Forensics Laboratory with the investigation leading to today’s plea.
The government is represented by Assistant United States Attorneys Danielle Alfonzo Walsman and Jonathan W. Romankow of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey
Columbus Man Pleads Guilty to Facilitating Prostitution, Gun ChargeRead the Press Release
COLUMBUS, Ohio – Carl R. Smith, Jr., 30, of Columbus, Ohio, pleaded guilty in U.S. District Court to transportation in interstate commerce for purposes of prostitution and possession of a firearm by a previously convicted felon.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, which is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Columbus Police Chief Kim Jacobs and Colonel Paul Pride of the Ohio State Highway Patrol announced the plea entered today before U.S. District Judge Michael H. Watson.
According to court documents, during a traffic stop in July 2013 in which Smith was driving, law enforcement officers discovered an adult female passenger had a plastic baggie containing cocaine base and heroin. Based on information previously obtained through surveillance and confidential sources, it was believed that Smith was involved in directing the prostitution activities of the passenger and other females and that he had used the passenger during the traffic stop to conceal his supply of cocaine base and heroin.
Members of the Central Ohio Human Trafficking Task Force and the Columbus Police Department conducted an investigation of Smith’s suspected criminal activities between July 2013 and February 2014. A search warrant was executed at Smith’s residence in February 2014. While searching the residence, officers discovered Smith, who had been previously convicted of four felony offenses, was carrying a pistol. Numerous additional firearms and narcotics were seized from Smith’s residence during the execution of the search warrant.
During the course of the investigation leading up to the execution of the search warrant, officers conducted electronic and physical surveillance of Smith’s activities. During this surveillance, officers observed that Smith frequented various hotels in the Columbus, Ohio area where he had prostitutes working for him. Continued surveillance revealed that Smith also facilitated travel out of state to Pittsburgh and New York City, where his prostitutes engaged in sexual activity for hire. Smith attracted clients/johns for his prostitution business by posting numerous advertisements in the escort section of the Internet site backpage.com.
Transportation in interstate commerce for purposes of prostitution is a crime punishable by up to 10 years in prison and possession of a firearm by a previously convicted felon who is an armed career criminal carries a maximum sentence of up to life in prison.
U.S. Attorney Stewart commended the cooperative investigation by the Central Ohio Human Trafficking Task Force, as well as Assistant United States Attorneys Heather A. Hill and Salvador A. Dominguez, who are representing the United States in this case.Chester Springs Couple Get Prison Time for Operating Tax Refund Scam Involving Stolen Hospital Patient InformationRead the Press Release
PHILADELPHIA – Yanira Lopez, 29, was sentenced today to 48 months in prison for a tax fraud and identity theft scheme in which she and her husband, Rafael Henriquez Polanco, sought more than $1.7 million in fraudulent tax refunds. Polanco, 32, was sentenced on February 17, 2015 to 51 months in prison for numerous fraud and narcotics offenses. In addition to the prison terms, U.S. District Court Judge Mitchell S. Goldberg ordered three years of supervised release for each defendant, restitution totaling $447,299 for Lopez and $409,779 for Polanco, and special assessments of $500 and $600, respectively.
Lopez and Polanco both pleaded guilty to tax fraud, passport fraud, aggravated identity theft, and presentation of an immigration application containing a false statement. Additionally, Polanco pleaded guilty to possession with intent to distribute 500 grams or more of cocaine and possession with intent to distribute 28 grams or more of cocaine base, and Lopez pleaded guilty to wire fraud. Polanco is an illegal alien from the Dominican Republic, and, prior to his arrest in 2012, he and Lopez resided together in Chester Springs, Pennsylvania.
“These individuals demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims,” said Special Agent-In-Charge Akeia Conner, IRS Criminal Investigation, Philadelphia Field Office. “IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain committed to the pursuit of identity theft. We will hold those who engage in similar conduct accountable.”
Between January 2008 and September 2011, Polanco and Lopez obtained the names, dates of birth, and social security numbers of patients of Community Hospital in Chester, Pennsylvania and Crozer‑Chester Medical Center in Upland, Pennsylvania, by paying employees of the hospitals to steal confidential medical forms. Polanco and Lopez then utilized the stolen identities to file fraudulent individual income tax returns with the IRS claiming fraudulent refunds. In support of the false returns, the defendants submitted phony Forms W-2 (Wage and Tax Statement) and listed one of several return addresses in Chester, Pennsylvania, or Philadelphia, Pennsylvania, which addresses the defendants controlled. Polanco and Lopez opened several bank accounts, and paid others to open bank accounts, using false identities for the purpose of depositing the fraudulently procured tax refund checks. Lopez, a former bank teller, utilized her knowledge of bank procedures to further this aspect of the scheme. Between February 23, 2009 and September 16, 2011, the defendants caused the United States Department of the Treasury to issue federal tax refund checks totaling $257,710.79.
Between October 26, 2008 and May 18, 2010, Lopez devised a scheme to fraudulently obtain unemployment benefits from the Commonwealth of Pennsylvania. In furtherance of this scheme, Lopez represented to the Commonwealth that she was unemployed, when in fact she was employed full-time at Brandywine Maintenance, Inc., in Spring City, Pennsylvania, where she worked under the alias "Leslie Serrano."
The case was investigated by the U.S. Department of State Diplomatic Security Service, the Department of Labor, Immigration and Customs Enforcement Homeland Security Investigations, and the Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Kevin Brenner and Maureen McCartney.
Charleston Man Sentenced to 221 Months for Unlawful Possession of a FirearmRead the Press Release
The United States Attorney's Office announced that MARIO EVANS, of Charleston, Missouri, was sentenced today to 221 months on one felony count of Being a Previously Convicted Felon in Possession of a Firearm. He appeared before United States District Judge Stephen N. Limbaugh, Jr.
Evans was convicted following a jury trial in United States District Court on December 4, 2014. Testimony at trial established that on August 2, 2013, at approximately 11:45 p.m., an officer with the Charleston Department of Public Safety observed Evans’ vehicle parked in an abandoned car wash. Further investigation revealed Evans was also at the car wash, and on the driver’s seat of Evans’ car officers observed a loaded .22 caliber Lorcin brand semi-automatic pistol with the serial number removed, $1,238 in U.S. currency and 45 grams of marijuana.
A set of scales used for weighing drugs was found in Evans’ pants pocket. Evans was a previously convicted felon, having been convicted in 2001 and 2004 of distributing controlled substances. As the result of Evans’ convictions, he was prohibited from possessing firearms.
The case was investigated by the Charleston Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorneys Larry H. Ferrell and Jack N. Koester handled the prosecution for the Government.
California Resident Sentenced to Federal Prison for Attempted Possession with Intent to Distribute MethamphetamineRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a California resident was sentenced yesterday in federal court in Juneau for attempted possession with the intent to distribute methamphetamine.
Gilbert Vasquez Jr., 40, from Salinas, California, was sentenced yesterday by United States District Court Judge Timothy M. Burgess, to 60 months in prison followed by a five-year term of supervised release.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation conducted by the United States Postal Inspection Service (USPIS), Drug Enforcement Agency (DEA), and Alaska State Troopers (AST), who intercepted a Priority Express Mail parcel containing methamphetamine that was addressed to the defendant. USPIS secured a federal search warrant for the parcel, which contained 113 gross grams of methamphetamine and an electronic scale. On September 11, 2014, law enforcement conducted a controlled delivery of the parcel to Vasquez, and he was subsequently arrested. During the investigation, Vasquez admitted that the parcel was intended for him and that he knew the parcel contained methamphetamine which he intended to sell/distribute to others. A search of the defendant’s residence revealed drug paraphilia, baggies for the distribution of controlled substances and a drug ledger.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant and others, as reasons for imposing the 60 month sentence.
Ms. Loeffler commends the United States Postal Inspection Service, Drug Enforcement Agency, and Alaska State Troopers for the investigation leading to the conviction in this case.
Cache Valley Cancer Treatment and Research Clinic Pleads Guilty to Misdemeanor Information Involving Receipt and Delivery of Misbranded DrugsRead the Press Release
SALT LAKE CITY – Cache Valley Cancer Treatment and Research Clinic, a cancer treatment clinic located in Logan, pled guilty in U.S. District Court Tuesday afternoon to receipt of misbranded drugs and delivery for sale. The Misdemeanor Information charging the clinic was filed March 31, 2015. The clinic is owned and operated by Dr. Ali Ben-Jacob, a resident of Utah and an oncologist.
U.S. Magistrate Judge Dustin Pead imposed a six-month term of probation for the Clinic at Tuesday’s hearing. The clinic also must pay a fine of $175,000 and a forfeiture money judgment of $775,000.
According to court documents filed in the case, from about September 2009 to about September 2011, the Clinic received misbranded prescription oncology drugs from Quality Specialty Products (QSP) in Winnipeg, Manitoba, Canada. The drugs were “misbranded” because they came from a foreign drug establishment and were not listed annually with the U.S. Food and Drug Administration (FDA) by the foreign drug establishment as being manufactured for commercial distribution in the United States. The drugs included Abraxane, Aloxi, Gemzar, Anzemet, Camptosar, Eloxatin, Faslodex, Herceptin, Mabthera, Neupogen, Taxotere, Velcade, and Zometa.
Over the two year period, the Clinic paid in excess of $3.6 million for these prescription drugs which had not been listed by the FDA as being manufactured for commercial distribution in the United States. Approximately one-half of these prescription drugs were reimbursed by federal government programs, including Medicare, Tricare, and the Federal Employees Health Benefits Program. The Clinic resolved a civil claim with the Department of Justice brought on behalf of the FDA and federal government programs.
Prosecutors say there was no evidence uncovered during the course of the investigation establishing patient harm from the use of the drugs from QSP or that the drugs were counterfeit. The Clinic stopped ordering and using the misbranded drugs before it was contacted by government investigators.
“The doctor did not, however, advise his patients that he was using misbranded drugs obtained from a supplier outside the United States,” U.S. Attorney Carlie Christensen said today. “The FDA rules are in place to protect the safety and integrity of prescription medications used in the United States. Prosecuting these kinds of cases minimizes the chances of patients receiving unsafe medicine and ensures that government and private insurance programs are paying for approved drugs.”
“The FDA protects consumers by ensuring that they receive FDA-approved safe and effective drugs,” said Catherine A. Hermsen, Special Agent in Charge, Kansas City Field Office, FDA’s Office of Criminal Investigations. “We will continue to pursue individuals and corporations who place the public health at risk when they bypass this protective system.”
The case was investigated by FDA’s Office of Criminal Investigations, with the assistance of the U.S. Department of Health and Human Services – Office of Inspector General’s Office of Investigations; the U.S. Department of Defense’s Defense Criminal Investigative Services; and the U.S. Office of Personnel Management. In at least six related cases, QSP delivered similar unapproved, misbranded cancer treatment prescription drugs to physicians and practices in other areas in the United States. These cases were successfully prosecuted, in conjunction with FDA’s Office of Criminal Investigations.
Bossier City man pleads guilty to bankruptcy fraudRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City man pleaded guilty to concealing his business’ assets during bankruptcy proceedings.
John M. Santoro, 43, of Bossier City, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of concealment of assets in a bankruptcy proceeding. According to evidence presented at the guilty plea, Santoro filed for Chapter 7 bankruptcy protection on May 20, 2011, as the owner and for Santoro’s Catering Inc. After filing, Santoro had a third party sell a 2007 Dodge Ram 3500, which belonged to Santoro’s Catering Inc., and also sold some of the company’s catering equipment. Santoro failed to disclose the existence of the truck and the catering equipment to the bankruptcy trustee or list it on his bankruptcy petition. In bankruptcy proceedings, debtors are required to fully disclose all assets and liabilities.
Santoro faces a maximum of five years in prison, three years of supervised release, and a $250,000 fine. A sentencing date of July 6, 2015 was set.
The FBI conducted the investigation. Assistant U.S. Attorneys Brandon B. Brown and Cytheria D. Jernigan are prosecuting the case.
Belle Vernon Man Tells Court He Participated in Counterfeit Currency SchemeRead the Press Release
PITTSBURGH – A resident of Fayette County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Barry Robert Youger, Jr., 36, of Belle Vernon, Pa., pleaded guilty to one count before United States District Court Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that during the period from July 1, 2014, through July 28, 2014, Youger conspired with codefendants John Viloria, Eric Seighman and Cheryl Leigh Johnson, to pass thousands of dollars of counterfeit Federal Reserve notes at various retail store locations in the Western District of Pennsylvania.
Judge Bissoon scheduled sentencing for July 2, 2015 at 10 a.m. The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Youger on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that lead to the prosecution of Yougher.
Baltimore Area Drug Dealer Sentenced to 11 Years in Prison for Conspiracy to Distribute Kilograms of CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Vincent Cooper, age 47, of Washington, D.C., to 11 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to court documents and his plea agreement, Cooper conspired to distribute cocaine from at least November 2013 through August 2014. During the time of the conspiracy, Cooper purchased a total of at least 14 kilograms of cocaine on four separate occasions.
On August 11, 2014, Cooper told a cooperating individual (CI) that he wanted to purchase seven kilograms of cocaine and one kilogram of heroin, but currently had the money to purchase six kilograms of cocaine. According to court documents, Cooper instructed the CI to meet him at an apartment complex in Baltimore, where Cooper worked as a maintenance man. Law enforcement saw Cooper and co-defendant Antoine Washington arrive at the apartment complex. Washington was arrested in the parking lot. Cooper was located coming up the basement stairs of the apartment complex. Law enforcement found a key to the maintenance closet thrown near the stairs where Cooper was first seen by law enforcement. After obtaining consent to search the maintenance closet from the owner of the apartment complex, law enforcement recovered a brown paper bag containing $216,140 in cash. Law enforcement also recovered $7,000 in cash from Washington’s car.
Four other co-defendants previously pleaded guilty to their participation in the scheme: Antoine DeMarr Washington, age 42, of Washington, D.C.; Guy Bordes Agnant, Jr., age 38, of Laurel, Maryland; Tavon Alexander Louis Hopkins, age 38; and Donte Eugene Taylor, age 39, both of Baltimore. All are awaiting sentencing.
On March 20, 2015, a federal jury today convicted co-defendants Jermaine Cannady, a/k/a “Main,” age 39; Cornell Dion Brown, a/k/a “Nelly,” age 29; Dominic William Parker, a/k/a “Nick,” age 30, all of Baltimore; and Ronald Timothy Sampson, a/k/a “Little Ronald,” age 35, of Windsor Mills, Maryland for conspiracy to distribute kilograms of cocaine and/or heroin, and for attempting to possess with intent to distribute cocaine and/or heroin. Each faces a mandatory minimum sentence of 10 years in prison and up to life in prison for conspiring to distribute and possess with intent to distribute cocaine and/or heroin, and for attempted possession with intent to distribute cocaine and/or heroin. U.S. District Judge Richard D. Bennett has scheduled sentencing for Sampson, Parker, Cannady and Brown on June 24, June 26, June 29, and June 30, 2015, respectively.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who are prosecuting the case.
Arsonist Sentenced to Almost Six Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Brian Keith Swope, Jr., age 33, of Brooklyn Park, Maryland late yesterday to 70 months in prison followed by three years of supervised release for the arson of a pizza restaurant in Brooklyn Park. Judge Hollander also ordered Swope to pay restitution of more than $100,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Allan C. Graves, Fire Chief of the Anne Arundel County Fire Department.
According to his plea agreement, on March 22, 2013, Swope learned that the owner of Pizza City restaurant had been arrested and remained in custody. Swope and a co-conspirator used heroin together and planned to burglarize Pizza City, where Swope had previously worked. Shortly after midnight on May 23, 2013, Swope and the co-conspirator used a tire iron to pry open the front door of Pizza City. They took money from the cash register and other items from the store, then used the money to purchase heroin. After using the heroin, Swope and the co-conspirator returned to Pizza City and stole numerous items, including computers, telephones, food and sodas. They sold some of the stolen items and purchased more drugs with the money. At the end of the evening, Swope and the co-conspirator again returned to Pizza City and set a fire to cover up their burglary by destroying the video surveillance system and any fingerprints left behind. After setting the fire, Swope and the co-conspirator took a taxi back to Swope’s home, taking along many of the food items stolen from Pizza City.
As a result of the investigation of the arson fire at Pizza City, on May 23, 2013, law enforcement seized the food stolen from Pizza City at Swope’s home. Swope was arrested the next day. Federal agents subsequently obtained a copy of a letter written by Swope attempting to obstruct the investigation by encouraging a witness to tell law enforcement that they had no information about the fire and burglary at Pizza City. The letter also advised the individual to falsely allege misconduct by law enforcement, and falsely tell law enforcement that Swope had broken into Pizza City two days before the fire.
United States Attorney Rod J. Rosenstein praised the ATF and Anne Arundel County Fire Department, Fire Marshal Division, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case.
Altoona Man Charged with Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A Blair County resident was indicted by a federal grand jury in Johnstown on a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
The one-count indictment named John F. Boslet, 49, Altoona, Pa.
According to the indictment presented to the court, on Aug. 8, 2013, Boslet knowingly possessed images as computer graphic files containing child pornography, which had been shipped and transported in interstate or foreign commerce by means of a computer.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Alamo Man Sentenced to Federal Prison for Convenience Store RobberyRead the Press Release
ALBUQUERQUE – Ronnie Ganadonegro, 38, a member of the Navajo Nation who resides in Alamo, N.M., was sentenced to 24 months in federal prison followed by three years of supervised release for his robbery conviction.
Ganadonegro was arrested on Jan. 23, 2014, on a criminal complaint charging him with the Dec. 30, 2014 robbery of the Tiis’ Tsoh Mini Mart in Alamo, which is located in the Navajo Indian Reservation. Ganadonegro subsequently was indicted and charged with one count of robbery.
On July 30, 2014, Ganadonegro entered a guilty plea to the indictment and admitted robbing the Tiis’ Tsoh Mini Mart on Dec. 30, 2013. Ganadonegro admitted approaching the counter in the convenience store, pointing an air pistol at the cashier, and demanding the money in the cash register. When the cashier opened the cash register, Ganadonegro grabbed the cash out of the register and fled on foot from the convenience store.
This case was investigated by the Albuquerque office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and Marisa A. Lizarraga.
Abilene Man Admits Possessing Prepubescent Child PornographyRead the Press Release
ABILENE, Texas — Charles Coci, 26, of Abilene, Texas, appeared today in federal court before U.S. Magistrate Judge E. Scott Frost and pleaded guilty to one count of possession of prepubescent child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Coci, who is on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing will be set at a later date.
According to documents filed in the case, Coci used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Coci located, downloaded and viewed numerous images and videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Abilene Police Department and the U.S. Air Force Office of Special Investigations investigated the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.