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6 April 2015
Wentzville Man Sentenced on Fraud Conspiracy ChargesRead the Press Release
St. Louis, MO – JOHN YORK was sentenced to 21 months in federal prison on charges of conspiracy to defraud the United States through his business, The Mortgage Store, Inc., in 2008.
According to court documents, York was a part owner of The Mortgage Store, Inc. (TMS) and the president of Title America. By 2008, TMS was a major mortgage brokering business with offices in four states and hundreds of employees. The main offices were in Westport Plaza and Wentzville. The businesses were operating at a financial deficit in 2008. TMS incurred over $600,000 in federal employment (including withholding) tax liabilities in the first three quarters of 2008 that were not paid over to the United States. There were not sufficient funds available to fund the disbursements from TMS and, in addition, to meet all of the expenses incurred by TMS, including the delinquent employment tax liabilities. York received substantial distributions from TMS in 2008 despite the federal employment tax delinquencies. In addition, he and others at TMS directed that TMS funds be paid on loans for properties at Tan Tar A Resorts in the Lake of the Ozarks, and for a ranch property in Breckenridge, Colorado. He was a partial owner of those properties.
In order to maintain its status as a loan correspondent for loans guaranteed by the Federal Housing Administration, TMS was required to maintain certain net worth balances that would be audited by a HUD authorized private firm and submitted to HUD by TMS. In June 2008, York and others at TMS falsified information concerning the net worth of TMS to the auditor for submission to HUD.
Additionally, in June and July 2008, TMS incurred liabilities for a 401k retirement plan in effect for its employees, as well as liabilities for the health and dental insurance plans offered to its employees. The amounts withheld from the employees’ pay checks were not paid over as required by law.
York, formerly of Wentzville, MO, and now of Osage Beach, MO, pled guilty last November to one felony count of conspiracy. He appeared today for sentencing before United States District Judge Carol E. Jackson. The court also ordered York to pay $497,000 in restitution.
This case was investigated by IRS Criminal Investigation, the Federal Bureau of Investigation, HUD Office of the Inspector General, the Department of Labor and the Department of Labor-Employee Benefits Security Administration. Assistant United States Attorney James E. Crowe, Jr. handled the case for the U.S. Attorney's Office.
WV man who threatened Elkins federal building convicted of possessing stolen explosivesRead the Press Release
ELKINS, WEST VIRGINIA – Jonathon Schrader, 30, of Elkins, West Virginia, was convicted in federal court today of possession of stolen explosives, United States Attorney William J. Ihlenfeld, II, announced.
Schrader, also known as “Hobo John,” was discovered in possession of stolen explosives, namely C-4, in Randolph County, West Virginia in February 2015. He had threated to detonate explosives at various locations in Elkins, including at the Federal Building and during a musical performance at the Forest Festival.
Schrader pled guilty today to one count of “Possession of Stolen Explosives” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti is prosecuting the case on behalf of the government. The Federal Bureau of Investigation is leading the investigation. The West Virginia State Police, Randolph County Sheriff’s Office, United States Marshals Service, Federal Protective Services, Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Homeland Security, and the United States Secret Service are also investigating.
U.S. Magistrate Judge John S. Kaull presided.
Violent New Bedford Drug Dealer Guilty of Heroin Trafficking and RobberyRead the Press Release
BOSTON – After a two-week trial, a federal jury in U.S. District Court in Boston convicted a violent New Bedford drug dealer of heroin trafficking and robbery.
Francisco Monteiro, a/k/a “Cisco,” 35, of Bourne, Mass., was found guilty of conspiracy to distribute 100 grams or more of heroin, distribution of heroin, possession with intent to distribute heroin, and interference with commerce by threat or violence. U.S. District Court Judge Denise J. Casper scheduled sentencing for July 6, 2015.
Monteiro, a long-time, large-scale South Coast drug trafficker, acquired drugs through violent drug robberies. At trial, federal agents described how, in February 2013, they recorded Monteiro offering to provide large quantities of heroin to a cooperating witness and then recorded Monteiro as he and two associates sold nearly 100 grams of heroin to the cooperating witness. When agents attempted to set up a second heroin purchase, Monteiro robbed the cooperating witness of the buy money. Monteiro was arrested three days later, at which time agents seized heroin, much of the stolen “buy money,” other drug trafficking materials, handcuffs, and brass knuckles.
The jury also heard testimony concerning a 2011 robbery committed by Monteiro and several other men. Monteiro and others lured Stanley and Joshua Gonsalves, two Cape Cod OxyContin dealers, to a meeting where the Gonsalves Brothers believed they were purchasing 15,000 OxyContin pills. Instead, Monteiro and his crew robbed the Gonsalves brothers of the $225,000 they brought to purchase the pills.
The charge of conspiracy to distribute over 100 grams of heroin provides for a sentence of no greater than life in prison, and a mandatory minimum term of 10 years due to a prior drug trafficking conviction. The charges of distribution of heroin and possession with intent to distribute heroin provide a sentence of no greater than 30 years in prison. The charge of interference with commerce by threat or violence provides for a sentence of no greater than 20 years. The charges also provide for a mandatory minimum of eight years and up to a lifetime of supervised release and a fine of $8 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. Significant assistance was also provided by the Barnstable and Bristol County Sheriffs’ Offices and the Barnstable, Bourne, Fairhaven, Fall River, New Bedford, and Wareham Police Departments. The case was prosecuted by Assistant U.S. Attorneys Christopher Pohl and Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit.
Tehama County Sheriff’s Office’s Contribution to the Mission of the U.S. Attorney’s Office and Department of Justice RecognizedRead the Press Release
RED BLUFF, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce that the Tehama County Sheriff’s Office is the 2014 winner of the Eastern District of California Law Enforcement Award for Outstanding Law Enforcement Agency in the Sacramento Division. This award is one of four awards presented annually to a law enforcement agency in the Eastern District of California’s Sacramento and Fresno divisions to recognize outstanding collaboration between federal, state and local law enforcement in addressing public safety issues in this region.
The Tehama County Sheriff’s Office is receiving the Sacramento Division’s Outstanding Law Enforcement Agency Award for its critical efforts in keeping the peace this past summer when tensions arose at the Rolling Hills Casino, operated by the Paskenta Band of Nomlaki Indians, a federally recognized tribe within the Eastern District. The Paskenta tribe was embroiled in an intra-tribal dispute that led to the creation of rival security forces. These armed security forces engaged in a stand-off at the site of the tribe’s casino in Corning that lasted almost two weeks while members of the general public were on site, and in harm’s way. During the extended stand-off, the Tehama County Sheriff’s office almost single-handedly kept the peace with personnel who were on site around the clock. The Sheriff’s Office maintained open lines of communication with all parties to the dispute and were in constant contact with partner agencies in the state and federal government. The Sheriff’s Office respected the sovereignty of the tribe and never attempted to take a side in the dispute. Deputies treated all involved with civility and respect, and deserve credit for avoiding what could have been a tragic situation.
“The Tehama County Sheriff’s Office is truly deserving of recognition and our thanks for keeping the peace at Rolling Hills,” said U.S. Attorney Wagner. “The members of the Office, including Sheriff Dave Hencratt, Lieutenant David Greer, Assistant Sheriff Phillip Johnston, and all of the deputies who served during this tense time exhibited all of the best qualities that law enforcement can aspire to. They were brave, tireless, and respectful, and they showed an absolute commitment to doing everything possible to avoid physical harm to our citizens. It is our privilege to work alongside them in serving our District.”Tax Preparers Sentenced for Stealing and Selling Identities of More Than 300 MinorsRead the Press Release
PROVIDENCE, R.I. – The owners and operators of NBP Multiservices (NBP), a tax preparation business in Cranston, R.I., have been sentenced to federal prison for stealing personal identifying information of more than 300 minors named as dependents on legitimate tax returns their company prepared and then selling the information to other tax filers for use on their tax returns in order to increase tax refunds, announced United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
Tashia Bodden, 37, of Cranston, was sentenced today by U.S. District Court Judge Mary M. Lisi to 36 months in federal prison to be followed by 2 years supervised release; Evelyn Nunez, 40, of Providence, was sentenced on March 18, 2015, by U.S. District Court Judge Mary M. Lisi to 30 months in federal prison to be followed by 2 years supervised release. The defendants were also ordered to pay restitution to the IRS in the amount of $1,402, 560 (joint and several).
The defendants, who were arrested in September 2014 by agents from IRS Criminal Investigation and the U.S. Secret Service, pleaded guilty on December 9, 2014, to one count of conspiracy to defraud the government and one count of aggravated identity theft.
According to court documents, the Scheme Development Center, a division of the IRS, conducted an analysis of tax returns prepared by individuals working at NBP and identified questionable use of children being claimed as dependents. The use of the dependents led to the refunding by the IRS of hundreds of thousands of dollars under the Earned Income Credit available to low income taxpayers.
According to court records and information presented to the court, an investigation by IRS Criminal Investigation, the U.S. Secret Service and the U.S. Attorney’s Office revealed that between January 2008 and February 2012, taxpayers purchased false dependents for approximately $600 - $700 per dependent. The investigation determined that the defendants falsely claimed children as foster children, nieces and nephews of the taxpayers when, in reality, they had no relation to the taxpayer.
The cases were prosecuted by Assistant U.S. Attorney Lee H. Vilker.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]South Sioux City Man Found Guilty of Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Deborah R. Gilg announced that Jacob W. Deng, 33, was found guilty by a United States District Court jury of Conspiracy to Distribute Methamphetamine, Distribution of Methamphetamine, Possession with Intent to Distribute Methamphetamine and Marijuana, and being a Convicted Felon in Possession of a Firearm, after a two and a half day jury trial before the Honorable Laurie Smith Camp, United States District Judge.
The evidence presented at trial revealed that on April 17, 2014, South Sioux City DEA Task Force Officers executed a search warrant on Deng’s South Sioux City apartment and discovered approximately two ounces of crystal methamphetamine, multiple ounces of marijuana, drug packaging materials, over $7,000 in cash, and two firearms. The evidence at trial revealed that Deng was a convicted felon and had previously delivered methamphetamine to a cooperating witness.
This case was the result of an investigation by the South Sioux City Police Department and DEA Tri-State Drug Task Force.
San Antonio Man Sentenced to Federal Prison on Bank Fraud ChargesRead the Press Release
In San Antonio today, 41-year-old Michael Dennehy was sentenced to 63 months in federal prison for bank fraud announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Senior United States District Judge David A. Ezra ordered Dennehy to pay $1,935,402.72 in restitution back to his employer, H. G. Dennehy pleaded guilty on December 17, 2014, to a one-count criminal information charging bank fraud.
According to court records, Dennehy began working for H.G. in 2004 and was promoted to a position managing accounts payable. Dennehy’s job duties were to pay the bills for H.G. and handle the company’s billing for surrounding cities. Dennehy began stealing money from H.G. by writing checks to himself and depositing them into his personal bank accounts. Dennehy also wrote unauthorized company checks directly to pay his personal American Express bills. As time went on, Dennehy forged H.G. checks written to himself or for his benefit in amounts ranging from $4,850.00 to $13,256.69 at a time.
By pleading guilty to the charge, Dennehy admitted that from 2008 until he was caught in 2014, he embezzled nearly $2 million dollars from his former employer, H.G., and used the money he stole on strippers, luxury vehicles, and gambling trips to Louisiana.
This case was investigated by agents with the Federal Bureau of Investigation. Assistant United States Attorney Christina Playton prosecuted this case on behalf of the Government.
San Antonio Man Sentenced to 225 Months in Federal Prison for Distributing Child PornographyRead the Press Release
In San Antonio today, Senior United States District Judge David A. Ezra sentenced 44-year-old Daniel David Osuna of San Antonio to 225 months in federal prison followed by 15 years of supervised release for distributing child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
On December 16, 2014, Osuna pleaded guilty to one count of distributing child pornography. By pleading guilty, Osuna admitted that he communicated and exchanged child pornography with over 100 other individuals. Osuna also admitted he had received, possessed and distributed child pornography via the Internet for a number of years. Court proceedings revealed Osuna possessed over 1300 images and over 300 videos of child pornography.
Osuna has remained in custody since his arrest on October 16, 2014.
This case was investigated by agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Tracy Thompson.
Rhode Island Chemical Company to Plead Guilty to Violating Clean Air Act for Failing to Develop and Implement Risk Storage PlanRead the Press Release
PROVIDENCE, R.I. – According to documents filed today in federal court in Providence, Mann Distribution, LLC, of Warwick, also known as Mann Chemical, LLC, is expected to plead guilty to a federal charge of violating the Clean Air Act for failing to develop and implement a Risk Management Plan to minimize the chance of release of hydrofluoric acid from its Warwick facility, and to protect workers, the community, and emergency and first responders in the event of a release or fire involving the chemical.
At sentencing, the court will be asked to impose a fine of $200,000 and to order the company to serve a term of 3 years probation for failing to adhere to Environmental Protection Agency (EPA) regulations which require a Risk Management Plan be developed, including a “worst case” response plan.
According to a Center for Disease Control and Prevention website, hydrogen fluoride is a chemical compound that contains fluorine. It can exist as a colorless gas or as a fuming liquid, or it can be dissolved in water. When hydrogen fluoride is dissolved in water, it may be called hydrofluoric acid. Hydrofluoric acid is used mainly for industrial purposes, and may cause skin burns, tissue damage and/or respiratory concerns.EPA regulations require facilities storing more than 1,000 lbs. of hydrofluoric acid to develop and implement a Risk Management Plan. An EPA inspection in June 2009 determined that Mann Chemical failed to develop and implement a Risk Management Plan while storing
92 drums of hydrofluoric acid in a concentration of 70%. The inventory indicated that each drum weighed 500 pounds, for a total of 46,000 pounds of hydrofluoric acid.The guilty plea was announced by United States Attorney Peter F. Neronha and the Environmental Protection Agency Criminal Investigation Division Boston Area Office.
A sentencing hearing has not yet been scheduled. A Plea Agreement filed with the court stipulates that at sentencing the Government and Mann Chemical will recommend that the court impose a fine of $200,000. In addition, Mann Chemical will be required to issue a public apology.
The matter is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly and Special Assistant United States Attorney Peter Kenyon of the Environmental Protection Agency.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Pair of Contractors Plead Guilty in Ongoing Public Corruption Probe of Bristol Virginia Utilities AuthorityRead the Press Release
ABINGDON, VIRGINIA – As part of its ongoing probe into corruption at the Bristol Virginia Utilities Authority (BVU), the United States Attorney’s Office for the Western District of Virginia, along with investigative partners at the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, announced today that a pair of former contractors who supplied BVU with false invoices have pled guilty.
During separate hearings today in District Court, Michael Albert Clark and James Todd Edwards pled guilty to federal crimes associated with their individual roles in schemes to provide fake invoices and pay kickbacks to BVU officials.
Edwards, 45, of Columbia, S.C., waived his right to be indicted today and pled guilty to a one count Information charging him with engaging in a multi-object conspiracy to commit wire fraud, mail fraud, tax fraud and money laundering.
Clark, 63, of Colbert, Ga., also waived his right to be indicted and pled guilty today to one count of engaging in a conspiracy to defraud the Internal Revenue Service.
According to evidence presented at today’s hearing by Assistant United States Attorney Zachary Lee, Edwards was the CEO of Edwards Telecommunications Inc. (ETI), a privately held corporation that worked as a contractor for BVU. In early 2006, Edwards, and Robert James Kelley Jr., then Vice President of Field Operations for BVU, embarked on a scheme to defraud BVU when Kelley Jr. requested that Edwards begin making kickback payments.
On or about and between January 2006 and February 2009, Edwards caused a number of false invoices to be submitted to Kelley Jr. for work not actually completed by ETI. Kelley Jr., approved these false invoices for payment knowing they contained false information. Kelley Jr. did this in order to receive kickback payments from Edwards. Edwards paid Kelley Jr. at least $160,000 in kickbacks. In addition, Edwards paid $40,000 in kickbacks to David Copeland, another former VP of Field Operations for BVU.
At sentencing, Edwards faces a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000
Evidence presented in court today also showed that Clark, who performed contract work for BVU from January 2000 to March 2015, submitted false invoices to Kelley Jr. for work not actually completed. Specifically, Clark submitted invoices in regards to his consulting business, R&M Consulting. These false invoices resulted in at least $110,065 in fraudulent billing by Clark to the BVU. Kelley Jr. approved these invoices knowing that the invoices contained false information. He approved these invoices because he was being paid kickbacks by Clark.
In addition, Kelley Jr. prepared false invoices that he sent to Clark that falsely claimed that he had done consulting work for Clark through Kelley Jr.’s company, RJK Consulting. Both Kelley Jr. and Clark knew these invoices were fraudulent and that Kelley Jr. had not done any work for Clark. Clark wrote checks to Kelley Jr. in the amount of $106,025 in order to pay kickbacks to Kelley Jr.
Clark filed tax returns with the IRS for tax years 2006, 2007, 2008 and 2009 and falsely claimed and deducted the payments to Kelley Jr. as business expenses with the intention of defrauding the IRS.
At sentencing, Clark faces a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
Ohio man convicted of heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Stephen Mynatt, 31, of Cleveland, Ohio, was convicted in federal court today of selling heroin in Marshall County, West Virginia in April 2014, United States Attorney William J. Ihlenfeld, II, announced.Mynatt pled guilty today to one count of “Aiding and Abetting the Distribution of Heroin.” 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 Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Marshall County Drug and Violent Crime Task Force investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
New Haven Man Pleads Guilty to Tax FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 3, 2015, WILLIE E. McKAY, 40, of New Haven, pleaded guilty in New Haven federal court to making a false claim to the Internal Revenue Service.
According to court documents and statements made in court, from as early as 2005 through 2008, McKAY was the pastor of The Love Temple Church, Inc., located at 75 Fresh Meadow Road in West Haven. During that time, McKAY provided people, including those in his congregation, with income tax preparation services. In February 2007, McKAY prepared and electronically filed a fraudulent individual U.S. Individual Income Tax Return, Form 1040, for 2006 of a taxpayer who was a member of his congregation. The tax return listed the address of Love Temple Church as the taxpayer’s home address, which was not accurate, and included a fictitious Form W-2 reflecting inflated wages and withholdings. The return also reflected fictitious deductions for state and personal property taxes, which reduced the taxpayer’s taxable income.
The fraudulent tax return that McKAY prepared reported wages of $47,900 from the State of Connecticut, withholdings of $14,952, and Schedule A deductions for state taxes of $4,359 and personal property tax of $852. Based on the false claim, the IRS issued a refund check in the amount of $9,693.
McKAY knew that the taxpayer was a student working at school and was not entitled to the claimed refund. McKAY also did not identify himself as the preparer of the tax return.
According to the IRS, the taxpayer was entitled to a federal tax refund of only $363.
McKAY is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on June 26, 2015, at which time he faces a maximum term of imprisonment of five years and a fine of up to $250,000. As part of the plea agreement, McKAY agreed to make restitution to the IRS of $9,693. He also acknowledged that he prepared and filed other false tax returns for the 2005 through 2007 tax years, which Chief Judge Hall will consider in imposing a sentence.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division with the assistance of the U.S. Secret Service and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Massachusetts Dairy Farm Agrees to Permanent Injunction for Improper Medication PracticesRead the Press Release
BOSTON – The Justice Department has filed suit on Friday, April 3, 2015, in the U.S. District Court for the District of Massachusetts against Michael P. Ferry Inc. and its owner, Michael P. Ferry (Ferry), to block them from violating the Federal Food, Drug and Cosmetic Act (FDCA) in connection with their alleged unlawful use of new animal drugs in cows slaughtered for food. The Justice Department filed the suit on behalf of the U.S. Food and Drug Administration (FDA).
The defendants have agreed to settle the litigation and be bound by a consent decree of permanent injunction that enjoins them from committing violations of the FDCA. The proposed consent decree has been filed with the court and is awaiting judicial approval.
“Failing to maintain appropriate controls in food-producing animals bound for slaughter jeopardizes the public health,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The resolution of this matter ensures that, should it choose to re-enter business, this farm will have the necessary procedures in place to ensure that it delivers safe food to consumers.”
The defendants are primarily in the dairy business, but also sell cows for slaughter as food. Government inspections as recently as June 2014 revealed that Ferry sold animals for slaughter containing excessive and illegal drug residues in their edible tissues. The inspections also revealed that the defendants failed to maintain complete records concerning the medication of their animals. The FDA issued a warning letter to the farm concerning its violations in 2011 and also held a regulatory meeting with the farm in 2013 to discuss unlawful residues found in its cattle. The complaint states that consumers of edible animal tissues who are susceptible to antibiotics may experience severe allergic reactions as a result of ingesting food containing out-of-tolerance antibiotic levels. Furthermore, food containing above-tolerance antibiotic levels contributes to the development of antibiotic-resistant strains of bacteria in those who eat or handle food containing residues of such drugs.
Under the consent decree, the defendants have agreed to shutter their business selling animals for slaughter. To resume selling cows for slaughter, the consent decree requires the defendants to take certain actions and institute measures that must be confirmed by the FDA as compliant.
Jewett City Man Admits to Illegally Possessing Guns and AmmunitionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 2, 2015, BRIAN FLETCHER, 34, of Jewett City, pleaded guilty in Hartford federal court to possession of firearms by a convicted felon.
According to court documents and statements made in court, on November 22, 2013, a court-authorized search of FLETCHER’s residence revealed a .308 rifle, a Smith & Wesson .40 caliber VE Handgun, a .38 caliber Smith & Wesson Model 60 revolver, as well as multiple rounds of ammunition and weapon magazines.
The investigation revealed that the .308 rifle was purchased earlier in 2013 by another individual at a sporting goods store in Lisbon, the .40 caliber handgun had been stolen from an owner in Oakdale, and the .38 caliber revolver had been stolen from an owner in Waterford.
The investigation further determined that FLETCHER had previously been convicted of felonies in the Superior Court of the State of Connecticut, including accessory to robbery in the first degree, hindering prosecution in the second degree, possession of a pistol without a permit, and attempted assault in the first degree.
It is a violation of federal law to knowingly possess a stolen firearm, or for a convicted felon to possess a firearm or ammunition that has moved in interstate or foreign commerce.
FLETCHER has been detained since his arrest on November 22, 2013. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 24, 2015, at which time he faces a maximum term of imprisonment of 10 years.
This case was investigated by the Federal Bureau of Investigation. The Norwich Police Department and the Connecticut State’s Attorney’s Office in New London have assisted the investigation and prosecution of this matter. The case is being prosecuted by Assistant U.S. Attorney Stephen B. Reynolds.
Husband and Wife Plead Guilty to Charges of Filing False Income Tax ReturnsRead the Press Release
JOHNSTOWN, Pa. - A couple from Johnstown, Pa., pleaded guilty in federal court to charges of filing false income tax returns, United States Attorney David J. Hickton announced today.
David J. Murphy and his wife, Joyce Murphy, each pleaded guilty to four counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that David and Joyce Murphy each filed individual income tax returns for the calendar years 2008, 2009, 2010 and 2011, whereby he and she failed to report $431,073 in taxable income, resulting in an underpayment of $140,834 in income tax owed to the United States.
Judge Gibson scheduled sentencing for August 13, 2015, at 10 a.m. for David and 11 a.m. for Joyce. The law provides for a total sentence of 12 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of David and Joyce Murphy.
Huntington woman pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman who sold heroin on multiple occasions in 2014 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Sunshine Renae Midkiff, 24, entered a guilty plea to distributing heroin before Chief United States District Judge Robert C. Chambers.
On October 16, 2014, Midkiff met an informant working with the FBI Drug Task Force in the 2200 block of Artisan Avenue in Huntington and distributed heroin to the informant in exchange for $180. Mount previously sold heroin to an informant in Huntington in September 2014.
Midkiff faces up to 20 years in federal prison, and is scheduled to be sentenced on July 6, 2015.
The FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Huntington man pleads guilty to federal drug chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who illegally sold oxycodone pills in 2013 and 2014 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Clinton Mack Mount, 37, entered a guilty plea to distributing oxycodone before Chief United States District Judge Robert C. Chambers.
On January 13, 2014, Mount met an informant working with the Drug Enforcement Administration outside a Barboursville restaurant and sold 100 oxycodone pills to the informant in exchange for $3,000. Mount also sold oxycodone pills to an informant on three other occasions from December of 2013 to January of 2014.
Mount faces up to 20 years in federal prison, and is scheduled to be sentenced on July 6, 2015.
The Drug Enforcement Administration and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Hamden Woman Who Stole Deceased Mother's Social Security Benefits Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SANDRA KIMBRO, 66, of Hamden, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to six months of imprisonment, followed by three years of supervised release, for stealing her deceased mother’s Social Security benefits for nearly 30 years. KIMBRO also was ordered to serve the first six months of her supervised release in home confinement, and to perform 120 hours of community service.
According to court documents and statements made in court, KIMBRO’s mother, a Social Security benefits recipient, died in 1984. At the time of her death, KIMBRO and her mother had a jointly-held bank account into which the mother’s monthly Social Security benefits were deposited. Between April 1984 and February 2014, KIMBRO illegally obtained $160,457 in Social Security benefits that had been deposited into the account for her mother’s use.
Through the years, as she withdrew money from the bank account, KIMBRO described to bank employees how she was providing care to her mother.
KIMBRO was ordered to pay full restitution.
On November 19, 2014, KIMBRO pleaded guilty to one count of theft of public funds.
This matter was investigated by the Social Security Administration, Office of Inspector General – Office of Investigations, and was prosecuted by Assistant U.S. Attorney Ray Miller.
Fourth Brooklyn, New York, Resident Charged with Attempt and Conspiracy to Provide Material Support to ISILRead the Press Release
Defendant Allegedly is Part of ISIL Foreign Fighter Local Support Network; Travelled to Kennedy Airport on Feb. 25 to Provide Cash to Co-Defendant Shortly Before Co-Defendant Was Arrested Attempting to Board Flight to Turkey to Join ISIL
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office, Commissioner William J. Bratton of the New York City Police Department and Special Agent in Charge Raymond R. Parmer Jr. of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New York announced that earlier today, a federal grand jury in Brooklyn, New York, returned a superseding indictment charging Dilkhayot Kasimov, 26, a Brooklyn resident, with attempt and conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. The defendant, who is charged along with three other Brooklyn residents whose arrests were first announced on Feb. 25, 2015, is scheduled to be arraigned on Wednesday, April 8, 2015, at 2 p.m., before U.S. District Judge William F. Kuntz II of the Eastern District of New York.
As alleged in the superseding indictment and other court filings, the investigation began last year when Abdurasul Hasanovich Juraboev, one of Kasimov’s co-defendants, came to the attention of law enforcement after posting on an Uzbek-language website that propagates ISIL’s ideology. The investigation subsequently revealed that Juraboev and another co-defendant, Akhror Saidakhmetov, planned to travel to Turkey and then to Syria for the purpose of waging violent jihad on behalf of ISIL. Saidakhmetov was arrested on Feb. 25, 2015, at John F. Kennedy International Airport, where he was attempting to board a flight to Istanbul. Juraboev previously purchased a plane ticket to travel from New York to Istanbul and had been scheduled to leave the United States in March 2015.
Working closely with co-defendant Abror Habibov, Kasimov allegedly helped fund Saidakhmetov’s efforts to join ISIL. Kasimov and Habibov collected over $1,600 from multiple individuals for Saidakhmetov to use in Syria. Kasimov thereafter delivered the money to Saidakhmetov at Kennedy Airport shortly before Saidakhmetov was apprehended trying to board his flight in February. Additional investigation uncovered electronic messages in which Kasimov encouraged others to participate in violent jihad and made clear his role in facilitating the travel of foreign fighters to Syria.
“This defendant is the fourth Brooklyn resident charged as part of the same network of individuals who are alleged to have conspired and attempted to provide material support to ISIL,” said U.S. Attorney Lynch. “Terrorist support networks like the one this defendant was involved in offer critical funding, travel logistics, and encouragement to persons seeking to join ISIL and other foreign terrorist organizations. We will remain vigilant in our efforts to stem the flow of foreign fighters to Syria and to disrupt and dismantle the networks, here and abroad, that support them.” U.S. Attorney Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state and local agencies from the region.
“Dilkhayot Kasimov allegedly attempted and conspired with others to provide material support to ISIL,” said Assistant Attorney General Carlin. “The National Security Division remains committed to holding accountable all who seek to provide material support to designated foreign terrorist organizations. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”
“Kasimov served as a money man in support of a co-defendant’s efforts to join ISIL,” said Assistant Director in Charge Rodriguez. “He provided encouragement and facilitated travel for foreign fighters. As the recent series of cases indicate, we will pursue every lead and every person who succumbs to this radical agenda. It is my hope that these cases deter others from sharing Kasimov’s fate: being under arrest and in trouble with the law.”
“Money is the oxygen that fuels terrorism,” said Commissioner Bratton. “This investigation proves again that we will leave no stone unturned to disrupt the finance, support, or membership in terrorist organizations like ISIL.”
“These arrests are the culmination of an extensive joint law enforcement effort to disrupt the recruitment of alleged terrorist sympathizers,” said Special Agent in Charge Parmer. “ICE-HSI will continue to use its unique immigration and customs authorities to assist our domestic and international law enforcement partners to stop jihadists from supporting terrorist organizations such as ISIL.”
If convicted, the defendant faces a maximum sentence of 30 years in prison. The charges in the superseding indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by Assistant U.S. Attorneys Alexander Solomon, Douglas M. Pravda and Peter W. Baldwin of the Eastern District of New York, with assistance provided by Trial Attorney Danya Atiyeh of the Justice Department’s National Security Division.
Kasimov Superseding Indictment
Fourth Brooklyn Resident Charged with Attempt and Conspiracy to Provide Material Support to ISILRead the Press Release
Earlier today, a federal grand jury in Brooklyn returned a superseding indictment charging Dilkhayot Kasimov, a Brooklyn resident, with attempt and conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. The defendant, who is charged with three other Brooklyn residents whose arrests were first announced on February 25, 2015, is scheduled to be arraigned on Wednesday, April 8, 2015 at 2 p.m. before United States Magistrate Judge Lois Bloom at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; William J. Bratton, Commissioner, New York City Police Department (NYPD); and Raymond R. Parmer, Jr., Special Agent-in-Charge, Homeland Security Investigations (HSI), New York.
As alleged in the superseding indictment and other court filings, the investigation began last year when Abdurasul Hasanovich Juraboev, one of Kasimov’s co-defendants, came to the attention of law enforcement after posting on an Uzbek-language website that propagates ISIL’s ideology. The investigation subsequently revealed that Juraboev and another co-defendant, Akhror Saidakhmetov, planned to travel to Turkey and then onward to Syria for the purpose of waging violent jihad on behalf of ISIL. Saidakhmetov was arrested on February 25, 2015, at John F. Kennedy International Airport, where he was attempting to board a flight to Istanbul, Turkey. Juraboev had previously purchased a plane ticket to travel from New York to Istanbul and had been scheduled to leave the United States in March 2015.
Working closely with co-defendant Abror Habibov, Kasimov allegedly helped fund Saidakhmetov’s efforts to join ISIL. Kasimov and Habibov collected over $1,600 from multiple individuals for Saidakhmetov to use in Syria. Kasimov thereafter delivered the money to Saidakhmetov at Kennedy Airport shortly before Saidakhmetov was apprehended trying to board his flight in February. Additional investigation uncovered electronic messages in which Kasimov encouraged others to participate in violent jihad and made clear his role in facilitating the travel of foreign fighters to Syria.
“This defendant is the fourth Brooklyn resident charged as part of the same network of individuals who are alleged to have conspired and attempted to provide material support to ISIL,” stated United States Attorney Lynch. “Terrorist support networks like the one this defendant was involved in offer critical funding, travel logistics, and encouragement to persons seeking to join ISIL and other foreign terrorist organizations. We will remain vigilant in our efforts to stem the flow of foreign fighters to Syria and to disrupt and dismantle the networks, here and abroad, that support them.” Ms. Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state, and local agencies from the region.
“Dilkhayot Kasimov allegedly attempted and conspired with others to provide material support to ISIL,” said Assistant Attorney General Carlin. “The National Security Division remains committed to holding accountable all who seek to provide material support to designated foreign terrorist organizations. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”
“Kasimov served as a money man in support of a co-defendant’s efforts to join ISIL,” said FBI Assistant Director-in-Charge Rodriguez. “He provided encouragement and facilitated travel for foreign fighters. As the recent series of cases indicate, we will pursue every lead and every person who succumbs to this radical agenda. It is my hope that these cases deter others from sharing Kasimov’s fate: being under arrest and in trouble with the law.”
“Money is the oxygen that fuels terrorism. This investigation proves again that we will leave no stone unturned to disrupt the finance, support, or membership in terrorist organizations like ISIL,” said NYPD Commissioner Bratton.
“These arrests are the culmination of an extensive joint law enforcement effort to disrupt the recruitment of alleged terrorist sympathizers,” said Raymond R. Parmer Jr., special agent in charge, HSI New York. "ICE-HSI will continue to use its unique immigration and customs authorities to assist our domestic and international law enforcement partners to stop jihadists from supporting terrorist organizations such as ISIL.”
If convicted, the defendant faces a maximum sentence of 30 years in prison. The charges in the superseding indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Peter W. Baldwin are in charge of the prosecution, with assistance provided by Trial Attorney Danya Atiyeh of the Justice Department’s Counterterrorism Section.
The Defendant:
DILKHAYOT KASIMOV
Age: 26
Nationality: Uzbeki
E.D.N.Y. Docket No. 15-CR-095 (WFK)
Former St. Louis City Police Officer Pleads Guilty to Weapons ChargesRead the Press Release
St. Louis, MO – Former St. Louis City Police Officer DON McGHEE pled guilty to charges of providing a firearm to known drug dealers to facilitate their distribution of crack cocaine and marijuana in the City of St. Louis.
According to court documents, McGhee was a St. Louis Metropolitan Police Officer, assigned as a Patrolman in the Sixth District. Officer McGhee knew and associated with individuals who stored and distributed quantities of crack cocaine and marijuana in and from a house located on Cottage Avenue, in the City of St. Louis. On March 2, 2014, Officer McGhee took a Mossberg 12-gauge pistol grip shotgun to the Cottage Avenue drug house and gave it to one of the drug dealers knowing, believing or having reason to believe that the drug dealer would use the shotgun in relation to and in furtherance of the drug trafficking. During the execution of a search warrant at the Cottage Avenue house several days later, law enforcement officers recovered the Mossberg pistol grip shotgun, fully loaded, along with several other firearms, ammunition, quantities of crack cocaine and marijuana and a large amount of cash.
McGhee, St. Louis City, pled guilty to one felony count of conspiracy to possess a firearm in relation to a drug trafficking crime before United States District Judge Audrey G. Fleissig. Sentencing has been set for July 14, 2015.
This charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
United States Attorney Richard Callahan noted that this investigation originated with the St. Louis City Police Department, which then partnered with additional law enforcement agencies as its investigation expanded. In addition to the St. Louis City Police Department, the case is also being investigated by the Federal Bureau of Investigation, the United States Drug Enforcement Administration and the St. Louis Circuit Attorney’s Office. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Former Restaurant Owner Indicted for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a now-closed Oronogo, Mo., restaurant has been indicted by a federal grand jury for receiving and distributing child pornography over the Internet.
Jerry Batchelor, 51, of Carthage, Mo., was charged in an indictment returned under seal by a federal grand jury in Springfield, Mo., on April 1, 2015. That indictment was unsealed and made public today upon Batchelor’s arrest and initial court appearance.
Batchelor was the owner of Benchwarmer’s Neighborhood Restaurant and Sports Pub in Oronogo. The federal indictment alleges that Batchelor received and distributed child pornography over the Internet between Aug. 10, 2012, and April 4, 2014.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
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."
Former Navy Serviceman Stationed in Connecticut Charged with Child Exploitation OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging ADAM M. SIMPSON, 28, a former member of the U.S. Navy who was stationed at the Naval Submarine Base New London in Groton, with enticing minors to perform sexually explicit acts during online video chats, and receipt and possession of child pornography. The indictment was returned on March 24, 2015, and SIMPSON was arraigned today before U.S. Magistrate Judge Thomas P. Smith in Hartford.
According to the indictment, between approximately January 2013 and November 2013, SIMPSON engaged in video chats with minors using online video chatting services such as Skype and Omegle. During these video chats, SIMPSON enticed the minors to perform sexual acts and engage in sexually explicit conduct, which SIMPSON recorded, saved on his computer, and then shared with others. In order to deceive and entice the minors, SIMPSON sometimes posed as a young boy. He also coerced minors to perform more sexual acts for him by threatening to publicly release their sexually explicit videos. In addition, the indictment alleges that SIMPSON possessed a collection of child pornography, which he downloaded over the Internet onto his computer.
SIMPSON has been detained since his arrest on related state charges on January 7, 2014.
If convicted of the charge of enticement, SIMPSON faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. The charge of receipt of child pornography carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years, and the charge of possession of child pornography carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Connecticut State Police Computer Crimes Unit, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The U.S. Naval Criminal Investigative Service also provided critical assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Former Franklin County Deputy Sheriff Sentenced for TheftRead the Press Release
FRANKFORT — A former deputy of the Franklin County Sheriff’s Department, who previously admitted to using evidence collected from an investigation to pay for personal expenses, has been sentenced to 16 months in federal prison and two months of home incarceration.
U.S. District Judge Gregory F. Van Tatenhove sentenced Matthew Christian Brown, 32, for theft of government property and ordered him to pay $17,840.54 in restitution. Of that amount, $9,900 will be paid to the Franklin County Sheriff’s Department. Under federal law, Brown must serve at least 85 percent of his prison sentence; and following his release, he will be under the supervision of the U.S. Probation Office for three years.
According to his plea agreement, Brown, who also served as the chief narcotics officer, executed a search warrant at a suspect’s residence, where he seized a watch and a ring. Instead of logging those items as evidence, Brown kept them for himself. He further admitted that he sold the ring back to the suspect.
Brown served as a deputy sheriff from May 2007 until December 2012.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Rodney C. Brewer, Kentucky State Police Commissioner; and Howard Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement today.
The investigation was conducted by the Kentucky State Police and the FBI. Assistant U.S. Attorney Hydee Hawkins prosecuted this case on behalf of the federal government.
Former Fort Drum Employee Sentenced for False StatementRead the Press Release
SYRACUSE, NEW YORK – On April 2, 2015, ANTHONY B. FELDER (44) of Redwood, New York, was sentenced to 2 years of Probation and a $5,000 fine by the Honorable David E. Peebles, announced United States Attorney Richard S. Hartunian and Marion F. Robey, Director, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command (Army CID), Quantico, Virginia. Judge Peebles also ordered Felder to pay $35,500 in restitution to the United States Army Corps of Engineers.
Felder pled guilty in November 2014 to knowingly making a false statement regarding outside positions he held while employed by the Army Corps of Engineers at Fort Drum in Jefferson County, New York. Felder subsequently resigned his position as a project manager with the Army Corps of Engineers.
In January 2009, Felder incorporated a proprietary engineering company named East Coast Mitigation, which soon thereafter began performing environmental subcontract work at Fort Drum. The following month, Felder, who was legally barred from doing outside work on any contracts at Form Drum while employed by the Army Corps of Engineers, submitted a certification form in which he was required to report "[a]ll positions [held] outside the U.S. Government." When he submitted the form, Felder reported various outside positions which did not conflict with his employment at Fort Drum, but he did not disclose his ownership interest in East Coast Mitigation. As a result, Felder earned a personal profit of $35,500 from the subcontract work performed by East Coast Mitigation before his false statement was discovered.
This case was investigated by the Major Procurement Fraud Unit, Army CID, the Defense Criminal Investigative Service, Office of Inspector General, and the Federal Bureau of Investigation, and it was prosecuted by Assistant United States Attorney Michael F. Perry. Please direct press inquiries to Executive Assistant U.S. Attorney John Duncan at 315-448-0672.
Former E-Commerce Executive Charged with Price Fixing in the Antitrust Division's First Online Marketplace ProsecutionRead the Press Release
A former executive of an e-commerce seller of posters, prints and framed art has agreed to plead guilty for conspiring to fix the prices of posters sold online, the Department of Justice announced.
A one-count felony charge was filed today in the U.S. District Court of the Northern District of California in San Francisco against David Topkins. According to the charge, Topkins and his co-conspirators fixed the prices of certain posters sold online through Amazon Marketplace from as early as September 2013 until in or about January 2014. Topkins also has agreed to pay a $20,000 criminal fine and cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“Today’s announcement represents the division’s first criminal prosecution against a conspiracy specifically targeting e-commerce,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “We will not tolerate anticompetitive conduct, whether it occurs in a smoke-filled room or over the Internet using complex pricing algorithms. American consumers have the right to a free and fair marketplace online, as well as in brick and mortar businesses."
According to the charge, Topkins and his co-conspirators agreed to fix the prices of certain posters sold in the United States through Amazon Marketplace. To implement their agreements, the defendant and his co-conspirators adopted specific pricing algorithms for the sale of certain posters with the goal of coordinating changes to their respective prices and wrote computer code that instructed algorithm-based software to set prices in conformity with this agreement.
“These charges demonstrate our continued commitment to investigate and prosecute individuals and organizations seeking to victimize online consumers through illegal anticompetitive conduct,” said Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office. “The FBI is committed to investigating price fixing schemes and remains unwavering in our dedication to bring those responsible for theses illegal conspiracies to justice.”
Topkins is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years and a fine of $1 million for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online wall décor industry, which is being conducted by the Antitrust Division’s San Francisco Office with the assistance of the FBI’s San Francisco Field Office. Anyone with information on price fixing or other anticompetitive conduct related to other products in the wall décor industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Topkins Information
Former Corry Physician Sentenced for Possessing Child PornographyRead the Press Release
ERIE, Pa - A resident of Corry, Pennsylvania, has been sentenced in federal court to 39 months in jail and ordered to make restitution in the amount of $1,000 on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on William Jay Blazes, 47.
According to information presented to the court, Blazes possessed thousands of computer images and movies depicting minors engaging in sexually explicit conduct.
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.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Corry Police Department, the Erie County District Attorney’s Office, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Blazes.
Former Chelsea Housing Authority Executive and Former Public Housing Inspector Convicted of Rigging Inspection ProcessRead the Press Release
BOSTON – A former executive of the Chelsea Housing Authority (CHA) and a former public housing inspector were convicted on Wednesday, April 1, 2015, for their roles in rigging the inspection process of federally funded housing units.
James Fitzpatrick, 63, of Acton, Mass., and Bernard Morosco, 50, of Utica, NY, were convicted of conspiring to defraud the United States and the U.S. Department of Housing and Urban Development (HUD) by impairing, impeding, and defeating the proper operation of HUD’s physical condition assessment.
Pursuant to federal regulations, to determine whether a public housing authority is meeting the standard for its residents of conditions that are “decent, safe, sanitary, and in good repair,” HUD’s Real Estate Assessment Center (REAC) is required to “provide for an independent physical inspection of a public housing authority’s property or properties that includes, at a minimum, a statistically valid sample of the units in the CHA’s public housing portfolio to determine the extent of compliance with the standard.” REAC inspections are conducted by independent contractors who have received training from REAC on the inspection protocol and applicable regulations, and have been certified by HUD. Once certified, an inspector is given an inspector number, and with a password, can access the secure REAC server, which contains data on all public housing authorities and also later enable the inspector to generate a random sample of units to inspect on the scheduled date of the inspection.
Before the REAC inspections of the CHA in 2007, 2009, and 2011, Morosco gave Fitzpatrick, the Assistant Director of the CHA, an advance list that revealed which units at the CHA would be inspected. During those years, Morosco, who was a REAC-certified inspector, worked for the CHA as a consultant, advising the CHA about how to get better scores on its REAC inspections.
One or two months before each REAC inspection, using information provided by Fitzpatrick, Morosco accessed HUD’s secure database and downloaded information to which he was not entitled. That information enabled him to use his REAC software to generate, in advance, the random sample that would later be generated by the assigned REAC inspector. Morosco then gave the samples to Fitzpatrick who, in turn, provided it to the CHA’s Executive Director, Michael McLaughlin.
McLaughlin divided CHA employees into pairs, calling each pair a SWAT team, and sent them to inspect the units identified by Morosco. For the month before each inspection, the SWAT teams visited several apartments a day, inspecting and re-inspecting them as maintenance crews visited the units to make repairs, fumigate, and exterminate. When the REAC inspectors conducted the inspections, the units that were selected were the same as the ones provided in advance by Morosco.
United States Attorney Carmen M. Ortiz and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys S. Theodore Merritt of Ortiz’s Public Corruption and Special Prosecutions Unit and Brian Pérez-Daple of Ortiz’s Economic Crimes Unit.
Former Allegheny College Professor Pleads Guilty to Child Pornography OffensesRead the Press Release
ERIE, Pa. - A resident of Meadville, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Kirk Nesset, 57, pleaded guilty to three counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Nesset distributed, received and possessed thousands of computer movies and images depicting minors engaging in sexually explicit conduct. Some of these images and movies depicted infants and toddlers.
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.
Judge Cercone scheduled sentencing for August 10, 2015 at 2:15 p.m. The law provides for a total sentence of 50 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Nesset on bond for one month. At the conclusion of the month, Nesset must report to prison.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Nesset.
Festus Man Sentenced to 15 Years for Mailing Threatening CommunicationsRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that William J. Mabie, 56, of Festus, Missouri, was sentenced Friday, April 3, 2015, in federal district court in East St. Louis, following his conviction on December 11, 2014, on three counts of Mailing Threatening Communications.
Evidence showed that Mabie, who had been previously convicted of similar crimes in the Eastern District of Missouri, mailed three threatening letters to persons within the Southern District of Illinois. Mabie wrote two of the threatening letters in 2012 while he was incarcerated at the U.S. Penitentiary in Lompoc, California; he wrote the third threatening letter while he was incarcerated at the U.S. Penitentiary in Florence, Colorado.
Mabie sent one of the letters to the Sheriff of Bond County, Illinois, in 2012; Mabie sent the other two letters to the wife of a policeman in 2012 and 2013.
At the times Mabie sent the letters, he was serving an 88-month prison sentence for an earlier conviction in the Eastern District of Missouri in 2010. The 2010 conviction resulted in part from a threatening communication concerning the same policeman whose wife received two of the letters charged in the Southern District of Illinois.
The prosecution presented evidence that Mabie had written numerous threatening letters to witnesses, prosecutors, law enforcement officers, and the judge who had presided over his
2010 case in the Eastern District of Missouri. The prosecution also presented evidence that Mabie had recently spit upon a Deputy U.S. Marshal in the East St. Louis courthouse, following a court hearing on March 12, 2015.
At the sentencing hearing, Chief Judge Michael J. Reagan noted that Mabie had a long history of making threats, having six prior convictions involving making threats to various people. The judge found that Mabie is capable of carrying out his threats upon release from prison; hence, the judge indicated that a lengthy sentence was appropriate in this case.
The judge also found many of Mabie’s letters to others, and his spitting on the Deputy Marshal, to be outrageous and malicious. The judge indicated that, by his sentence, he needed to stop Mabie from further crime and from harming the public. The judge noted that prior punishment had not deterred Mabie; therefore, a lengthy sentence was appropriate.
The judge imposed a total sentence of 15 years – that is, five years on each count, to run consecutively to each other, and consecutive to the sentence he is still serving on the Eastern District of Missouri case. The judge stated that he had never previously imposed such a sentence; the judge called it a "breathtaking sentence for breathtaking conduct." The judge also imposed a $15,000 fine, a $300 special assessment, and a 3-year term of Supervised Release, to run concurrently with the term of Supervised Release to which Mabie is subject in the Eastern District of Missouri.
The case was prosecuted by Assistant U.S. Attorney Stephen Clark and Special Assistant U.S. Attorney Jonathan Drucker. The case was investigated by the United States Postal Service.
Fairview, Pa., Man Sentenced to 5 Years in Federal Prison for Receiving Child PornographyRead the Press Release
ERIE, Pa. - A resident of Fairview, Pennsylvania, has been sentenced in federal court to 60 months in jail on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Graham K. Yahn, 27.
According to information presented to the court, Yahn received and possessed computer images and movies depicting minors engaging in sexually explicit conduct.
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.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Yahn.
Elkins man convicted of unlawful possession of firearmRead the Press Release
ELKINS, WEST VIRGINIA – Johnny Lee Green Jr., 56, of Elkins, was convicted in federal court today of unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
In 1978, Green was convicted of the felony offenses of “First Degree Murder” and “Using a Weapon in Commission of a Felony.” As a result of that conviction, he is prohibited from possessing firearms. He was discovered in July 2014 in possession of a 9mm pistol.
Green pled guilty today to one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge John S. Kaull presided.
Colorado U.S. Attorney's Office Cracks Down on Men Traveling from Out-of-state to Colorado to Have Sex with ChildrenRead the Press Release
DENVER – The U.S. Attorney’s Office, in conjunction with U.S. Immigrations and Customs Enforcement (ICE) Homeland Security Investigations (HSI), have cracked down on individuals who travel to Colorado from other states with the intention of having sex with minor children. Two arrests were made last week, and a third individual pled guilty to the crime. All three are held in custody.
Brian Franklin Howard, age 37, of Las Vegas, Nevada, was arrested on April 2, 2015, at Denver International Airport by HSI and the Denver Police Department after he flew here to have sex with children. Howard initially came into contact with an undercover HSI agent on line. The agent was using the persona of a single mother of children, ages 10 and 14. At one point Howard took photos of his penis and sent them to the single mother persona, indicating that he would like for her to show them to her daughters. He then arranged to meet her and her children in Denver. He flew from Las Vegas to Denver, where he was met with an agent acting in an undercover capacity at DIA. Once he confirmed his intent to have sex with the children he was arrested. Howard faces one count of aggravated sexual abuse with children (with a penalty of not less than 30 years and up to life in federal prison, and up to a $250,000 fine), two counts of travel with intent to engage in illicit sexual conduct (with a penalty of not more than 30 years in prison, and up to a $250,000 fine), and two counts of attempted coercion and enticement (with a penalty of not less than 10 years and up to life in prison, and up to a $250,000 fine). Howard is scheduled to have a detention hearing on April 8, 2015.
Also last week Matthew Hornung, age 33, of Harrisburg, Pennsylvania, was arrested by HSI and the Colorado State Patrol on March 28, 2015, after driving to Colorado to have sex with children. Hornung also met an undercover agent on line. The agent was using the single mother persona, saying she had children ages 10 and 14. The defendant, intent on meeting the single mother and her two children, drove from Pennsylvania to Colorado. Hornung made it to Colorado, although his vehicle started to fail before he reached Greeley. He was arrested by HSI and the Colorado Highway Patrol after he approached the marked CSP car for assistance. The defendant faces one count of travel with intent to engage in illicit sexual conduct (with a penalty of not more than 30 years in federal prison, and up to a $250,000 fine). He has been ordered held without bond pending a resolution of his case.Finally, Darwin Gowen, age 62, of St. Louis, Missouri, pled guilty on March 31, 2015, before U.S. District Court Judge R. Brooke Jackson, to one count of travel with intent to engage in illicit sexual conduct (the penalty of which is not more than 30 years in federal prison and up to a $250,000 fine). Gowen also met an HSI agent online, using the persona of a single mother with young children. He traveled from Missouri to Denver by plane, where he was arrested by HSI at DIA after confirming his intent to have sex with children, ages 11 and 15. Gowen is in federal custody pending sentencing.
“Preventing the sexual abuse of children is a top priority of this office,” said U.S. Attorney John Walsh. “These cases should demonstrate to those who plan to travel from other states to Colorado in hopes of sexually exploiting children that there will be immediate and severe criminal consequences.”
“The sexual exploitation of children by predators has reached epidemic proportions nationally and internationally,” said David A. Thompson, special agent in charge of HSI Denver. “Targeting these predators through the tireless efforts by our HSI special agents has been a high priority for more than a decade. These cases demonstrate how every parent must remain vigilant to Internet predators who may pose in various disguises to meet and ultimately sexually exploit children.”
These cases were investigated by HSI with support from the Colorado State Patrol.
Howard and Gowen are being prosecuted by Assistant U.S. Attorney Alecia Riewerts. Hornung is being prosecuted by Assistant U.S. Attorney Beth Gibson. Howard and Hornung have been charged by Criminal Complaint. Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a grand jury. Both of those defendants are presumed innocent unless and until proven guilty. Gowen has pled guilty.
Cocaine Trafficker Faces up to 20 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Kendall Ferrara, 33, of Providence, faces up to 20 years in federal prison and a fine of $1,000,000 when he is sentenced in July, having pleaded guilty today in U.S. District Court in Providence to trafficking cocaine, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
Appearing before U.S. District Court Judge Mary M. Lisi, Ferrara pleaded guilty to one count of distribution of cocaine. At sentencing on July 16, 2015, Ferrara faces statutory penalties of up to 20 years imprisonment to be followed by 3 years to lifetime supervised release, and a fine of up to $1,000,000.
According to court documents and information presented to the court, an undercover FBI Safe Streets Task Force investigation into drug trafficking activities in and around Providence in the fall of 2014 included five purchases of cocaine of varying amounts from Ferrara during a five-week period of time. The purchases totaled nearly 59 grams of cocaine.
Ferrara was arrested by members of the FBI Safe Streets Task Force on February 23, 2015.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
The FBI’s Safe Streets Task Force consists of agents and law enforcement officers from the FBI, RI State Police, Providence, Cranston, Woonsocket, Johnston and Central Falls Police Departments and the RI Adult Corrections Institutions.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Calais Man Fined $5,000 and Sentence to Probation for False StatementRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Clyde Eldridge, 65, of Calais, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr, to one year of probation and fined $5,000 for making a false statement to federal agents.
According to court records, Eldridge owned C&E Feeds, a feed and pet store in Calais. In 2010, the U.S. Environmental Protection Agency (EPA) and its Canadian counterpart, Environment Canada, were investigating the illegal use of the pesticide cypermethrin. On September 23, 2010, when asked by two EPA special agents to identify anyone to whom he had sold cypermethrin and whether he had kept records of the sales, Eldridge said he sold different amounts of cypermethrin to different people and that he did not keep track of the sales. The investigation revealed, however, that Eldridge sold cypermethrin on 10-11 occasions to one regional production manager employed by Kelly Cove Salmon Ltd., a subsidiary of Cooke Aquaculture, and that on each occasion Eldridge made a note of the quantity picked up by the manager. In April of 2013, Cooke Aquaculture pled guilty in New Brunswick Provincial Court and paid a $490,000 fine for illegally using pesticides that killed hundreds of lobsters in waters that were about a mile from Maine’s border.
In imposing a sentence, Judge Woodcock said that Eldridge violated the trust of his fellow citizens in selling the pesticide, knowing that it would likely be used in violation of Canadian law and that violating laws meant to protect the environment is a serious matter.
The investigation was conducted by EPA’s Criminal Investigation Division and Environment Canada.
Broward County Resident Sentenced to More Than 5 Years in Prison for Identity Theft Schemes Involving Fraudulent Income Tax Refunds and Social Security BenefitsRead the Press Release
A Broward County resident was sentenced to 61 months in prison, followed by 3 years of supervised release, and was ordered to pay restitution of $57,949, for his participation in identity theft schemes involving fraudulent income tax refunds and Social Security benefits.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General (OIG), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Sheldon Mozie, II, 23, previously pled guilty to one count of wire fraud and one count of aggravated identity theft.
According to court documents, law enforcement executed a search warrant at Mozie’s residence and seized papers/notes containing at least 182 victims’ personal identifying information (PII), a thumb drive containing at least 99 additional victims, Mozie’s computer, and debit cards. Computer forensic investigators determined that Mozie’s computer contained the PII of many of the same victims’ that were found in the notes/papers in Mozie’s bedroom, in addition to other victims’ PII. Mozie filed 49 federal income tax returns for tax year 2013 using the PII of many of the victims that were found on the papers/notes in his bedroom. Between February 10, 2014 and May 6, 2014, for the tax year 2013, Mozie claimed $208,559 on the fraudulent tax returns.
Mozie also utilized the stolen PII to divert Social Security benefit payments to himself that belonged to additional identity theft victims. To accomplish this scheme, Mozie logged onto the Social Security Administration website, “my Social Security,” with the victims’ names, dates of birth and Social Security numbers to open online accounts in those victims’ identities. Once the online accounts were opened, Mozie was able to divert the Social Security benefit payments from the victims to himself by having the funds deposited onto prepaid debit cards (mostly Green Dot cards) or by directly depositing the funds into his personal bank account. Between September 2013 and May 2014, Mozie diverted approximately $25,027 in Social Security benefits to himself.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, SSA-OIG, and BSO. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward County Resident Sentenced in Connection with International Fraud SchemeRead the Press Release
A Broward county resident was sentenced by United States District Judge Beth Bloom in Fort Lauderdale to 71 months imprisonment, followed by three years of supervised release, for his participation in a fraudulent international lottery scheme that targeted senior citizens living in the United States.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
On January 23, 2015, Mikhail Gorbachev George Williams, 26, of Fort Lauderdale, pled guilty to one count of conspiracy to commit wire fraud.
According to court documents and statements made in court, Williams participated in a fraudulent lottery scheme, emanating from Jamaica, in which elderly victims throughout the United States were falsely told that they had won a lottery/sweepstake contest. Williams and his co-conspirators sent letters and made multiple telephone calls to the victims, wherein they fraudulently claimed to be representatives of the sweepstakes/lottery company that was to award the prize monies. The victims were told that in order to claim their winnings, they had to pay taxes, duties or fees. The co-conspirators directed the victims to pay Williams in order to receive their purported winnings. The elderly victims were induced to send thousands of dollars to cover bogus fees, taxes and insurance for the fraudulent lottery winnings. The victims paid Williams by wire transfers, money orders, U.S. currency, and checks. Payment was made though the U.S. mail and by prepaid debit cards.
Mr. Ferrer commended the investigative efforts of the U.S. Postal Inspection Service and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Beckley man sentenced for federal drug chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that a Beckley man was sentenced in federal court in Huntington on a federal drug charge. Michael Greer, 30, of Beckley, was sentenced as a career offender to a 120-month term of imprisonment, followed by a 3-year term of supervised release. Greer previously pled guilty in December of 2014, to distributing heroin to a person cooperating with law enforcement authorities. The drug deal took place on Brooks Street in Beckley. The sentence was imposed by Chief United States District Court Judge Robert C. Chambers.
This case was investigated by the Beckley Raleigh County Drug and Violent Crime Task Force and is being prosecuted under the Beckley Pill Initiative directed by the United States Attorney’s Office.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – David Godfrey, Jr., 28, of Albuquerque, N.M., pleaded guilty this morning in federal court to a heroin trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Godfrey was arrested on Sept. 8, 2014, on a two-count indictment charging him with distribution of more than 100 grams of heroin and using and carrying a firearm in relation to a drug trafficking crime. According to the indictment, Godfrey committed the crime on Feb. 13, 2013, in Bernalillo County, N.M.
During today’s proceedings, Godfrey pled guilty to Count 1 of the indictment charging him with distribution of heroin. In entering the guilty plea, Godfrey admitted that on Feb. 13, 2013, he handed a bag containing more than 100 grams of heroin to another person in northeast Albuquerque. Godfrey also admitted that at the time he had a .45 caliber pistol in his waistband for protection.
At sentencing, Godfrey faces a statutory minimum penalty of five years and a maximum of 40 years in federal prison. He remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police. Assistant U.S. Attorney Paul Mysliwiec is prosecuting this case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
4 April 2015
Brunswick Men Convicted on Federal Tax ChargesRead the Press Release
Contact: Karen E. Kelly
Assistant Chief, U.S. Department of Justice's Tax Division
James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II and Acting Assistant Attorney General of the U.S. Department of Justice, Tax Division, Caroline D. Ciraolo, announced that F. William Messier, 70, and David E. Robinson, 78, both of Brunswick, Maine, were convicted yesterday by a federal jury in U.S. District Court for conspiracy to defraud the United States by impeding and impairing the Internal Revenue Services (IRS). Messier was also convicted of corruptly endeavoring to impede the IRS. Messier was acquitted of willful failure to file income tax returns for 2008 through 2012.
According to testimony during the trial, Messier, doing business as Oak Hill Communications, earned income generated on leases from telecommunication towers located on his Brunswick property. From 1999 through 2014, Messier engaged in conduct intended to obstruct the enforcement of the Revenue laws, including providing false tax documents to customers, obstructing IRS collection activities and the extensive use of cash. In 2012, the IRS assessed taxes and interest against Messier totaling $172,000 for the tax years 2000 to 2004. According to the testimony of witnesses, after the IRS sent Notices of Levy to Messier’s customers, Robinson and Messier took a number of steps to obstruct and impede the IRS in the enforcement of the levy, including presenting the IRS with a fake and worthless money order for the amount due by Messier. According to witness testimony, Messier and Robinson urged customers not to honor the levies or to pay the IRS, urged customers to pay Messier in cash to conceal their payments from the IRS, sent false documents to the IRS and sent threatening and misleading correspondence to customers of Messier’s business urging them not to cooperate with the IRS. Robinson claims to be the “Interim Attorney General” of the “Maine Republic Free State.”
Messier faces up to 8 years in prison and fines totaling $500,000. Robinson faces up to five years in prison and a fine of up to $250,000. They will be sentenced after the completion of presentence investigation reports by the U.S. Probation Office.
The case was investigated by IRS Criminal Investigation. Assistant United States Attorney James W. Chapman, and Karen E. Kelly, Assistant Chief at the Tax Division prosecuted the case.
3 April 2015
Webster Man Pleads Guilty to DistributingRead the Press Release
CONTACT: Karen Brown
PHONE: (716) 843-5836
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Erik Smothers, 36, of Webster, NY, pled guilty to distributing cocaine to various individuals in Rochester, NY, between 2009 and his arrest on November 28, 2014. Smothers faces a minimum sentence of 5 years and maximum sentence of 40 years imprisonment and a $5,000,000 fine.
Assistant U.S. Attorney Melissa Marangola, who is prosecuting the cases, stated that Smothers consistently sold ounce levels of cocaine during the five year period. He will return to court to be sentenced before United States District Court Judge Elizabeth Wolford on October 5, 2015 at 12:00 p.m.
The plea is the culmination of an investigation on the part of the Drug Enforcement Administration under the direction of Special Agent in Charge James J. Hunt, New York Field Office, with the assistance of the New York State Police under the direction of Major Scott M. Crosier.
Waggaman Woman Charged with Wire Fraud After Embezzling over $200,000 from EmployerRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DELORES TROUILLET, age 58, of Waggaman, was charged today in a one-count Bill of Information with wire fraud.
According to the Bill of Information, from 1999 to 2014 TROUILLET was employed by a carpet, flooring, and drapery sales and installation company (“Company A”) headquartered in Gretna, Louisiana, where she served as a bookkeeper. In her capacity as bookkeeper, TROUILLET was responsible for overseeing the company’s finances and accounts. TROUILLET had access to Company A’s bank accounts, including the ability to conduct wire transfers from Company A’s bank accounts.
Using her access to the company’s accounts, TROUILLET stole money from Company A in various ways, including generating checks drawing on Company A’s bank accounts to pay her personal expenses. To make the payments appear legitimate, TROUILLET listed in Company A’s internal records checks she made out to herself and deposited into her personal bank account as being made payable to entities with whom Company A engaged in business or frequently paid funds, such as “State Farm Insurance” and “IRS.” TROUILLET also paid for her personal daily expenses using Company A’s corporate credit and debit cards. Further, TROUILLET added money to her biweekly payroll in excess of her agreed upon salary. In total, TROUILLET embezzled approximately $208,082.03 from Company A.
If convicted, TROUILLET faces a maximum term of imprisonment of 20 years imprisonment, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Secret Service and investigators with the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Delores Trouillet Bill of Information
US Army National Guard Soldier and His Cousin Indicted for Conspiring to Support Terrorism (ISIL)Read the Press Release
CHICAGO ― U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Assistant Attorney General for National Security John P. Carlin, and Special Agent in Charge Robert J. Holley of the Chicago Division of the Federal Bureau of Investigation announced today that two Aurora, Illinois, men were indicted Thursday for allegedly conspiring to provide material support to Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization.
Army National Guard Specialist HASAN EDMONDS, 22, and JONAS EDMONDS, 29, were arrested last month by members of the Chicago FBI’s Joint Terrorism Task Force (JTTF) and remain in federal custody. The defendants were charged in an indictment filed yesterday in U.S. District Court of the Northern District of Illinois with one count of conspiring to provide material support and resources to a foreign terrorist organization. Both defendants will be arraigned April 8, at 10:00 in front of Magistrate Judge Sheila M. Finnegan
Conspiring to provide material support to a foreign terrorist organization carries a maximum penalty of 15 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorneys Barry Jonas and John Kness of the Northern District of Illinois, and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
U.S. Attorney's Office to Conduct Election Day Monitoring Election Day Hotline: (312) 469-6157Read the Press Release
CHICAGO -- Consistent with a long-standing practice of the office, the U.S. Attorney’s Office will monitor the election in Chicago on Tuesday, April 7, 2015, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced today. As part of the monitoring effort, the office will operate a hotline for candidates or the public to call to report any complaints relating to voting. In addition, Assistant U.S. Attorneys will be available to respond to complaints as needed.
The hotline number is (312) 469-6157.
Coordination of the monitoring efforts and subsequent investigations, if any, will be directed by Assistant U.S. Attorney Maureen Merin. The Chicago Office of the Federal Bureau of Investigation and the U.S. Marshals Service will assist in this effort by following up, if necessary, on any election fraud complaints.
U.S. Army National Guard Soldier and His Cousin Indicted for Conspiring to Support TerrorismRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois and Special Agent in Charge Robert J. Holley of the FBI’s Chicago Field Office announced today that two Aurora, Illinois, men were indicted on Thursday for allegedly conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization.
U.S. Army National Guard Specialist Hasan Edmonds, 22, and his cousin, Jonas Edmonds, 29, were arrested last month by members of the Chicago FBI’s Joint Terrorism Task Force (JTTF) and remain in federal custody. The defendants were charged in an indictment filed yesterday in U.S. District Court of the Northern District of Illinois with one count of conspiring to provide material support and resources to a foreign terrorist organization. Both defendants will be arraigned on April 8, at 10:00 before Magistrate Judge Sheila M. Finnegan.
Conspiring to provide material support to a foreign terrorist organization carries a maximum penalty of 15 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorneys Barry Jonas and John Kness of the Northern District of Illinois, and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Two Philadelphia Men Charged with Defrauding Assistance ProgramRead the Press Release
PHILADELPHIA - Abdoulaye Diallo, 50, and Lassana Nianghane, 51, both of Philadelphia, PA, were charged by indictment, unsealed today, with conspiracy to commit offenses against the United States Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP), announced United States Attorney Zane David Memeger. Both defendants were arrested today.
According to the indictment, Diallo, the owner and operator of Brothers Food Market, located in the Germantown section of Philadelphia, trafficked in SNAP benefits with SNAP program beneficiaries by purchasing benefits for cash, which is illegal. It is further alleged that Nianghane, also known as the “purse man,” aided Diallo by acting as the initial contact person for beneficiaries who wanted to sell their SNAP benefits for cash. According to the indictment, instead of accompanying SNAP beneficiaries to Brothers Food Market, defendant Nianghane telephoned defendant Diallo and relayed to Diallo the particulars of the proposed illegal sales over the phone.
Between June of 2011 and May of 2014, according to the indictment, Diallo submitted to USDA, on behalf of Brothers, total SNAP reimbursements of approximately $1.1 million.
If convicted, Diallo and Nianghane face a substantial period of incarceration, three years of supervised release, a fine of up to $1.8 million, and restitution.
The case was investigated by the United States Department of Agriculture Office of Inspector General and U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Floyd J. Miller.
Stevensville Businessman Pleads Guilty to FraudRead the Press Release
MISSOULA – Steven Vincent Sann, a 59-year-old resident of Stevensville plead guilty today to charges of wire fraud and money laundering. If the maximum sentences were imposed and ordered to be served consecutively, Sann faces 30 years in prison, $500,000 in fines and 6 years supervised release. U.S. District Judge Dana Christensen set sentencing for July 17, 2015. Sann was released pending sentencing.
Assistant U.S. Attorney Tim Racicot told the court that Sann managed the “Sann Companies” which were engaged in the business of marketing a stand-alone voice mail and fax service using a practice known as Local Exchange Carrier (“LEC”) billing to collect for the service’s charges. Sann was the president, secretary, treasurer, and director of one of those companies – Emerica Media Corporation. The Sann Companies were incorporated in Nevada and most of them designated one person – either a relative or friend of Sann’s – to serve as president, secretary, treasurer, and director. The United States alleged the offense occurred between March 2009 and December 2011.
Utilizing LEC billing to collect for services has come under intense scrutiny over the past several years based on allegations that charges are placed on customers’ monthly bills without their knowledge or consent. Such unauthorized billing is known as cramming. Cramming is the placing of unauthorized charges on your wireline, wireless, or bundled services telephone bill. The Federal Communications Commission (FCC) has estimated that cramming has harmed tens of millions of American households. Crammers often rely on confusing telephone bills to trick consumers into paying for services they did not authorize or receive, or that cost more than the consumer was led to believe.
In order to place charges on land-line telephone bills for its services, the Sann Companies contracted with billing aggregators such as Transaction Clearing. Transaction Clearing worked with the phone companies (LECs) to facilitate the placing of charges on the monthly phone bills of the Sann Companies’ customers.
The federal charges were based on Sann’s fraudulent misrepresentations to Transaction Clearing related to his and his companies’ business relationships with Transaction Clearing. In March of 2010, Transaction Clearing defined for the Sann Companies what it considered a “cramming complaint” and in its contracts with the Sann Companies required them to report complaints meeting that definition on a monthly basis. The reporting obligation applied whether or not the complaint actually related to a customer being signed up for the service without their consent or knowledge, or was justified or unjustified; it only mattered that a complaint had been made. If the complaints reached a certain threshold, the LECs and billing aggregators would require entities such as the Sann Companies to submit action plans in an effort to reduce the volume of complaints. If complaints persisted, the LECs could suspend the Sann Companies and terminate the billing arrangement.
The contracts also required each Transaction client, including the Sann Companies, to disclose the names of other companies or entities owned or controlled by that client’s officers or principals. In order to continue to receive revenue for the Sann Companies from Transaction Clearing, Sann and his agents failed to accurately report complaints meeting Transaction Clearing’s definition of cramming, and also failed to fully disclose Sann’s interest in the Sann Companies.
An employee of Tri-Data Systems in Montana (Emerica’s accounting firm), at the direction of Emerica in Montana, sent an email to Transaction Clearing in Texas on March 3, 2011, representing the Sann Companies had no complaints meeting Transaction Clearing’s definition of cramming during February 2011. In fact, the Sann Companies received approximately 479 complaints that met Transaction Clearing’s definition of cramming during February 2011.
In addition, Sann transferred $100,000 from a bank account to a Charles Schwab and Company investment account on April 4, 2011. The money involved in that transfer was paid to the Sann Companies in connection with funds received from utilizing LEC billing and therefore was derived from the wire fraud scheme described above.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
Springfield Businessman Pleads Guilty to Fraud Schemes, Must Pay $3 Million RestitutionRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., businessman pleaded guilty in federal court today to engaging in fraud schemes, even after he was under indictment and while incarcerated, that totaled more than $3 million in losses.
Richard Thomas Gregg, 59, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of bank fraud and one count of bankruptcy fraud.
Gregg was the principal shareholder and a director of Southwest Community Bank in Springfield, which failed in May 2010. In the factual basis to his plea agreement, Gregg admitted that the United States could prove he substantially jeopardized the soundness of that financial institution and directly contributed to the failure of the bank. Southwest Community Bank lost $679,399 on Gregg’s personal line of credit and $871,125 on a commercial real estate fraud scheme perpetrated by Gregg, for a total loss of $1,550,524.
Gregg and his wife also were majority shareholders in Glasgow Savings Bank in Glasgow, Mo., which failed in 2012. Prior to Glasgow Savings Bank’s failure, it was one of the oldest operating banks west of the Mississippi River. Gregg was also a real estate developer, an investor and a licensed insurance agent for the Shelter Mutual Insurance Company. Gregg had ownership interest in and controlled a number of business entities.
Under the terms of today’s plea agreement, Gregg will be sentenced to six years and six months in federal prison without parole and must pay $3,098,896 in restitution to the victims of his fraud schemes. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Bank Fraud
By pleading guilty today, Gregg admitted he defrauded Great Southern Bank by selling the collateral securing a $2 million loan, and keeping the proceeds. In February 2009, Gregg borrowed $2 million from Great Southern Bank in Springfield, using 160,000 shares of stock for First Bancshares, Inc. (FBSI), the holding company for First Homes Savings Bank, as collateral. Gregg physically deposited the stock certificate with Great Southern Bank. Between May 6, 2009 and June 6, 2009, Gregg devised and executed a scheme to defraud Great Southern Bank, and to obtain securities under the custody and control of Great Southern Bank by means of false and fraudulent pretenses, representations and promises.
As a part of this scheme, on May 6, 2009, Gregg checked out the original FBSI stock certificate from Great Southern Bank, using as a pretext the stated purpose of separating the large certificate into multiple smaller certificates. At that time, the loan from Great Southern Bank had a balance of $1,511,194. Gregg signed a trust receipt promising to return the stock certificates to the bank within 30 days. Gregg, however, chose not to return the stock certificates to Great Southern Bank and instead used the funds for other purposes. On May 7, 2009, Gregg deposited the collateralized FBSI shares into his account at Scottrade (a privately-owned retail brokerage firm). On May 28, 2009, Gregg borrowed $440,000 from Scottrade, from the margin account on which he used the FBSI stock as collateral.
As a result of Gregg’s fraud, Great Southern Bank consolidated several of his outstanding loans in order to cover the missing collateral. In the end, Great Southern Bank “charged off” $2,316,264 on this consolidated loan. However, the actual value of the FBSI shares, $1,350,400, is the loss directly attributable to the fraud.
Bankruptcy Fraud
While Gregg was already under indictment for bankruptcy fraud relating to the bankruptcy petition of his corporation, 1717 Market Place, LLC, he filed a personal bankruptcy petition that contained numerous false declarations and concealed fraudulent transfers of property.
On March 19, 2013, Gregg filed a voluntary bankruptcy petition. Between Feb. 20, 2013, and Sept. 1, 2014, Gregg devised a scheme to defraud the Bankruptcy Court, the United States Trustee and his creditors. By pleading guilty today, Gregg admitted that his bankruptcy petition contained materially false statements and knowingly omitted material facts. Gregg also admitted that he transferred his property to place that property beyond the reach of the Bankruptcy Court, the United States Trustee and his creditors.
Gregg transferred his interest in two parcels of real estate, a 97.2-acre tract and a 6.4-acre tract in Nixa, Mo. Gregg also filed $250 million in bogus liens on his real and personal property in order to keep them out of the hands of his creditors. Gregg admits that the United States could prove he reported $45,773,834 in unsecured debts to others, which he fraudulently attempted to have discharged in his personal bankruptcy case.
Other Crimes
In addition to the two counts to which he pleaded guilty, Gregg admitted the United States could prove by a preponderance of the evidence all of the other conduct alleged in the indictment against him, including two other bank fraud schemes, wire fraud schemes targeting two casinos, and money laundering.
In one bank fraud scheme, in 2008 Gregg defrauded Southwest Community Bank by selling the bank a piece of commercial real estate at 2814 S. Fremont in Springfield for $1,551,9440, when it was worth less than half that amount. Gregg did not disclose to the other bank directors that he had purchased that property for $775,000 a few months earlier, nor did he disclose that two appraisals had been conducted on the property in recent months. One appraisal valued the property at $762,000. The second appraisal was cancelled when Gregg disagreed with the preliminary work. After Gregg cancelled the appraisal, he had the bank order an appraisal of the Fremont property by another appraiser, who valued the property at $1,580,000. Gregg did not disclose to the bank that this appraisal was not an independent valuation of the property, but rather was something Gregg had, in essence, directed.
In another bank fraud scheme, Gregg used collectible automobiles as collateral to obtain loans, then sold the cars without paying back the loans. Gregg admitted that the United States could prove that in January and February 2010 he executed separate but related schemes to defraud Great Southern Bank, Metropolitan National Bank and People’s Bank of the Ozarks. As a part of these schemes, Gregg sold seven collectible automobiles at the Barrett-Jackson Auto Auction in Scottsdale, Ariz. Five of the automobiles were encumbered at the three banks.
Gregg borrowed $400,000 from Great Southern Bank in October 2007, which he secured with four collectible automobiles, including a 2006 Ford GT. Gregg consigned the 2006 Ford GT with the Barrett-Jackson Auto Auction in Scottsdale, Ariz., where on Jan. 23, 2010, the vehicle was sold at auction for approximately $150,000. Gregg chose to not return the proceeds of the sale of the Ford GT ($138,000 after deducting the auctioneer’s fee) to Great Southern Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Great Southern Bank realized a $129,644 loss.
Also, Gregg borrowed $400,000 from Metropolitan National Bank in 2005. He secured this loan with a “floor plan” financing, meaning the loan was a revolving line of credit made against specific pieces of collateral, in this case automobiles. When each vehicle on the floor plan was sold, the loan advanced against that piece of collateral was to be repaid. This loan was renewed in December 2009. In January 2010, the collateral included a 1971 Chevy Cheyenne Pickup. The portion of the loan’s balance collateralized by the 1971 Chevy Cheyenne Pickup was $17,221. Gregg also consigned the 1971 Chevy Cheyenne Pickup with the Barrett-Jackson Auto Auction, and it was sold for approximately $29,000. Gregg admits the United States could prove he chose to not return the proceeds of the sale ($26,680 after deducting the auctioneer’s fees) to Metropolitan National Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Metropolitan National Bank realized a $17,221 loss.
Gregg also admits the United States could prove he committed wire fraud related to bounced checks at two Oklahoma casinos. On Jan. 3, 2012 Gregg presented five checks, payable to Buffalo Run Casino in Miami, Okla., each in the amount of $10,000, knowing his credit union account contained insufficient funds to cover those checks. Between Feb. 16 and March 1, 2012, Gregg presented five checks payable to Downstream Casino and Resort in Quapaw, Okla., in the total amount of $60,000, knowing his bank account contained insufficient funds to cover those checks.
Gregg also admits the United States could prove that on Aug. 14, 2012, he filed a substantially fraudulent corporate bankruptcy petition for his company, 1717 Marketplace, LLC, that misrepresented the company’s financial situation to the material detriment of creditors, and concealed more than $9 million in debt owed to the company by insiders, payments he had directed.
Ongoing Criminal Conduct
Some of Gregg’s criminal conduct occurred while he was on bond and while he was incarcerated.
Following his indictment by a federal grand jury on Feb. 28, 2013, Gregg was released on a personal recognizance bond. While he was on bond, Gregg committed substantial, additional criminal offenses, for which the grand jury issued the first superseding indictment on July 23, 2014. The court found that Gregg had violated his conditions of bond by committing federal crimes while on release. The court found that Gregg posed a danger to the community in the form of potential economic harm, and that Gregg was unlikely to abide by any condition or combination of conditions of release. For those reasons, the court ordered Gregg’s bond revoked and he was incarcerated.
Gregg, through counsel, filed a motion asking the court to reconsider its order. Prior to the hearing, the government obtained and reviewed recordings of Gregg’s telephone conversations and prison visits, preserved on the Greene County Jail’s recording equipment. The recordings revealed that Gregg had conspired with others to commit new crimes from jail. On Nov. 3, 2014, the court issued an order denying the motion to reconsider bond.
On Nov. 4, 2014, the grand jury returned a second superseding indictment, which charged Gregg with additional acts of bankruptcy fraud.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FDIC Office of Inspector General and IRS-Criminal Investigation.
Snohomish County Man Sentenced to Ten Years in Prison for Gun TraffickingRead the Press Release
A 36-year-old Monroe, Washington man who burglarized a Fred Meyer store stealing 29 firearms and selling them to criminals was sentenced today in U.S. District Court in Seattle to ten years in prison, announced Acting U.S. Attorney Annette L. Hayes. MATTHEW ELSHAUG pleaded guilty in October 2014 to Conspiracy to Possess and Sell Stolen Firearms, Possession and Sale of Stolen Firearms, Theft of Firearms from a Federal Firearms Licensee, and being a Felon in Possession of Firearms. U.S. District Judge Robert S. Lasnik ordered three years of supervised release to follow the prison term and recommended a residential drug treatment program while ELSHAUG is incarcerated.
According to records filed in the case, in the early morning hours of November 17, 2013, ELSHAUG burglarized the Snohomish Fred Meyer store, using a crowbar to steal 29 firearms from the gun case. ELSHAUG, accompanied by his then-roommate Casey Yount, 27, then sold the guns to two other defendants for money and drugs. Yount was sentenced last December to three years in prison for Conspiracy to Receive, Possess, Barter, and Sell Stolen Firearms. Levi Herz, 31, of Everett, Washington, bought nine of the stolen guns and was sentenced last November to 54 months in prison for Possession and Sale of Stolen Firearms and Distribution of Controlled Substances. Raymond Baron, 53, of Marysville, Washington also bought some of the stolen guns. He was sentenced last January to five years in prison for Possession and Sale of Stolen Firearms and possession of an unregistered firearm. Of the 29 stolen guns, only nine have been recovered by law enforcement.
ELSHAUG has prior convictions in Snohomish County for burglary, theft, and illegal firearms possession. Yount has prior convictions in Snohomish County for theft and drug crimes. Herz has prior convictions in Snohomish County for drug crimes.
The case was investigated by the Snohomish Police Department, the Snohomish County Sheriff’s Department, the Marysville Police Department, the Everett Police Department, the Washington State Department of Corrections, the Snohomish Fugitive Task Force, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The Snohomish County Prosecuting Attorney’s Office worked closely with the U.S. Attorney’s Office and law enforcement on the case.
The case is being prosecuted by Assistant United States Attorney Kate Crisham.
Santa Fe Man Sentenced to Prison for Federal Oxycodone Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Daniel Trujillo, 32, of Santa Fe, N.M., was sentenced today in federal court in Santa Fe, N.M., to 18 months in federal prison followed by three years of supervised release for his Oxycodone trafficking conviction. Romero is one of five Santa Fe residents charged in Sept. 2013, with participating in an Oxycodone trafficking ring in a 16-count indictment.
Trujillo and his co-defendants, Ashraf Nassar, 31, Phillip Anaya, 38, Krystal Holmes, 28, and Sarah Romero, 35, were arrested as part of a multi-agency law enforcement operation that included the execution of search warrants at three residences and a business in Santa Fe. The investigation, “Operation High Desert Bash,” was initiated in Jan. 2013 by the DEA’s Tactical Diversion Squad in Albuquerque, N.M., the Santa Fe Police Department and HIDTA Region III Narcotics Task Force in response to the epidemic increase in prescription drug abuse, addiction and overdose deaths in New Mexico, particularly among teens and young adults.
Operation Desert Bash investigation was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation primarily targeted a drug trafficking organization unlawfully distributing quantities of Oxycodone in Santa Fe County. Oxycodone is an opioid narcotic pain reliever similar to morphine that is medically prescribed to treat moderate to severe pain and can be habit-forming. Officers seized approximately 7300 mg of Oxycodone during the investigation.
Count 1 of the 16-count indictment charged the five defendants with conspiracy to distribute Oxycodone in Santa Fe County between Dec. 2012 and Sept. 2013. Counts 2 through 4 of the indictment charged Nassar, Anaya and Holmes with substantive Oxycodone distribution offenses, and all five defendants were charged with using telephones to facilitate drug trafficking crimes in Counts 5 through 16.
Trujillo pled guilty on Jan. 30, 2015, to a conspiracy count and admitted his participation in a conspiracy to distribute Oxycodone in the Santa Fe area between Dec. 2012 and Sept. 2013. Trujillo also admitted that he would frequently receive oxycodone from a co-defendant which he would then redistribute.
Two of Trujillo’s co-defendants also have entered guilty pleas. Anaya pled guilty on Nov. 19, 2014, and Romero pled guilty on Oct. 28, 2014; each admitted participating in the Oxycodone trafficking conspiracy charged in the indictment. Under the terms of his plea agreement, Anaya will be sentenced to 46 months in federal prison. His sentencing hearing has yet to be scheduled. Romero was sentenced on March 26, 2015, to 18 months in federal prison followed by three years of supervised release.
Nassar and Holmes have entered pleas of not guilty and are awaiting trial. Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Tactical Diversion Squad of the DEA’s Albuquerque office, the Santa Fe Police Department and the HIDTA Region III Drug Enforcement Task Force, and is being prosecuted by Assistant U.S. Attorneys Shammara H. Henderson and Joel R. Meyers.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The HIDTA Region III Drug Enforcement Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and Santa Fe County Sheriff’s Office. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.