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Thursday 12 February 2015
U.S. Citizen Extradited from Costa Rica in Connection with International-Based Business Opportunity Fraud VenturesRead the Press Release
A U.S. citizen charged in connection with the operation of a series of fraudulent business opportunities was extradited from Costa Rica to the United States, the Justice Department announced today.
John White was charged in a Nov. 29, 2011, indictment in the Southern District of Florida with conspiracy to commit mail and wire fraud, five counts of mail fraud and 13 counts of wire fraud. White was arrested on Feb. 9, 2012, in Costa Rica pursuant to the indictment, which charges that White and his co-conspirators sold fraudulent beverage and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses, to victims in the United States. The charges in the indictment form part of the government’s continued nationwide crackdown on business opportunity fraud.
In addition to White, 11 other defendants have been charged in connection with related business opportunity fraud ventures that operated in Costa Rica. Nine of those other defendants have been convicted in the United States with sentences ranging from three to 16 years in prison. Two remaining defendants have yet to be received into the custody of the United States.
“Business opportunity fraud hurts those who are simply trying to fulfill their dream of running their own business.” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “We will continue to prosecute those who seek to enrich themselves by committing fraud at the expense of innocent victims.”
“Business opportunity fraud takes a heavy financial toll on victims who believe they are buying a piece of the American dream,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “The Department of Justice will continue its push to prosecute those who defraud consumers whether from here in the United States or abroad.”
Beginning in May 2005, White and his coconspirators are alleged to have fraudulently induced purchasers in the United States to buy business opportunities in USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc. and The Coffee Man Inc. According to the indictment, the business opportunities the defendant sold cost thousands of dollars each, and most purchasers paid at least $10,000. Each company operated for several months, and after one company closed, the next opened. The various companies used bank accounts, office space and other services in the Southern District of Florida and elsewhere, according to the indictment.
The indictment alleges that the defendant, using aliases, participated in a conspiracy that used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. In reality, White and his co-conspirators operated out of Costa Rica to fraudulently induce potential purchasers in the United States to buy the purported business opportunities, the indictment alleges.
According to the indictment, the companies made numerous false statements to potential purchasers of the business opportunities. Among the misrepresentations alleged in the indictment are: that purchasers would likely earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands. Potential purchasers were also told that the profits of the companies were based in part on the profits of the business opportunity purchasers, thus creating the false impression that the companies had a stake in the purchasers’ success and in finding good locations.
The indictment alleges that the companies employed various types of sales representatives, including fronters, closers and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to close deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities. The companies also employed locators, who were typically characterized by the sales representatives as third parties who worked with the companies to find high-traffic locations for the prospective purchaser’s merchandise display racks. The indictment alleges that White, using assumed names, worked as a fronter and a reference.
Each of the companies was registered as a corporation and rented office space to make it appear to potential purchasers that its operations were fully in the United States. USA Beverages was registered as a Florida and New Mexico corporation and rented office space in Las Cruces, New Mexico; Twin Peaks was registered as a Florida and Colorado corporation and rented office space in Fort Collins, Colorado; Cards-R-Us was registered as a Nevada corporation and rented office space in Reno, Nevada; Premier Cards was registered as a Colorado and Pennsylvania corporation and rented office space in Philadelphia; and The Coffee Man was registered as a Colorado corporation and rented office space in Denver.
White faces a statutory maximum sentence of 25 years in prison, a possible fine and mandatory restitution on the conspiracy count. He also faces a statutory maximum sentence of 25 years in prison on each of the mail and wire fraud counts, possible fines and mandatory restitution.
“The Postal Inspection Service will continue to aggressively investigate and combat business and investment fraud through the use of the U.S. mail,” said Postal Inspector in Charge Ronald Verrochio of the U.S. Postal Inspection Service Miami Division.
U.S. Attorney Ferrer and Acting Assistant Attorney General Branda commended the investigative efforts of the U.S. Postal Inspection Service. The Justice Department’s Office of International Affairs provided assistance with the extradition. The case is being prosecuted by Trial Attorney Alan Phelps of the Civil Division’s Consumer Protection Branch.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Managers of Telemarketing Room Charged with Fraud and Money LaunderingRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Mark Gardner (28, Osteen, Florida) and Tammie Lynn Cline (32, Leominster, MA) with one count of conspiracy, five counts of wire fraud, and four counts of money laundering. If convicted, each faces a maximum penalty of 20 years in federal prison for each conspiracy and wire fraud count and up to 10 years in federal prison for each money laundering count.
According to the indictment, Gardner and Cline operated a telemarketing room in Central Florida. They, along with the telemarketers who worked at their call center, made unsolicited calls to owners of timeshare properties located throughout the United States. In those calls, they claimed that they worked for Universal Timeshare Sales Associates (UTSA) out of Beaverton, Oregon, that UTSA had a purchaser who was interested in buying a timeshare, and that the timeshare owner just needed to pay a fee of between $1,600 and $2,200 for the sale to proceed. To convince timeshare owners to pay the fee, Gardner, Cline, and their telemarketers sometimes claimed that an interested purchaser was present in the showroom ready to buy a timeshare, that a buyer had already deposited money into an escrow account for the sale, or that the sale would take place in about 90 days. Those representations were false. The timeshares were not sold as had been promised, and Gardner, Cline, and their conspirators denied or ignored requests for refunds and disputed chargebacks with the credit card companies.
In May 2013, the Federal Trade Commission and the Florida Attorney General’s Office filed a civil action against Gardner, Cline, and others in federal court in Orlando. In June 2014, the Court entered a permanent injunction against them related to certain telemarketing practices.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
Two Defendants Convicted for their Involvement in a $100,000-Plus Tax Refund Fraud SchemeRead the Press Release
After a ten-day trial, a federal jury convicted Marlan L. Copeland, of Miramar, and Brannoc K. Rudd, of Miami Gardens, for their involvement in a tax refund fraud scheme that resulted in the cashing of over $100,000.00 in tax refund checks.
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), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
As shown at trial, between January 2010 and April 2010, Copeland and Rudd brought over twenty checks into a Wachovia bank in Miami Gardens, Florida. Each check reflected a tax refund issued by the U.S. Department of the Treasury. At the bank, the defendants cashed the checks and left with the money, which totaled over $100,000.00. Although each check had been purportedly signed by the taxpayer, at trial the taxpayers identified the signatures at forgeries.
At sentencing, which is currently set for April 20, 2015, at 3:00 p.m., before U.S. District Judge Joan A. Lenard, Copeland faces a maximum term of 12 years in prison and Rudd faces a maximum term of five years in prison.
Mr. Ferrer commended the investigative efforts of the IRS-CI and USSS. The case is being prosecuted by Assistant U.S. Attorneys John Gonsoulin and John Byrne.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Women Plead Guilty in Armenian Alien Smuggling RingRead the Press Release
SAN DIEGO, CA – Three Glendale, California women pleaded guilty today in federal court to smuggling Armenian nationals into the United States as part of an international smuggling organization.
Varduhi Avagyan, 42, Meri Avetsiyan, 40, and Maria Yanakopulus, 57, all admitted their roles in a transcontinental conspiracy to bring undocumented Armenian nationals illegally into the United States in exchange for thousands of dollars.
As part of their guilty pleas, the three admitted to conspiring to traffic Armenian nationals from Armenia to the United States by way of Moscow, Russia and Cancun, Mexico. The Armenian nationals were charged up to $18,000 each to be brought into the United States. The three would procure valid U.S. entry documents and attempt to bring the Armenian nationals into the United States as imposters to those documents.
Avagyan and Avetisyan were arrested on November, 1, 2013 attempting to smuggle two Armenian nationals into the country. Yanakopulus was arrested on September 5, 2014.
All three pleaded guilty to conspiracy to bring in illegal aliens for financial gain and encouraging and inducing illegal aliens. They are scheduled to be sentenced before U.S. District Judge Michael M. Anello on May 11, 2015.
DEFENDANTS Case Number: 14CR1646-MMA Varduhi Avagyan Age: 42 Glendale, California Meri Avetsiyan Age: 40 Glendale, California Maria Yanakopulus Age: 57 Glendale, California CHARGESConspiracy, 18 U.S.C. § 371 Five year maximum sentence, $250,000 fine
INVESTIGATING AGENCIESHomeland Security Investigations
Three Importers to Pay over $3 Million to Settle False Claims Act Suit Alleging Evaded Customs DutiesRead the Press Release
The Department of Justice announced today that California-based C.R. Laurence Co. Inc., Florida-based Southeastern Aluminum Products Inc. and Texas-based Waterfall Group LLC have agreed to pay $2,300,000, $650,000 and $100,000, respectively, to resolve a lawsuit brought by the United States under the False Claims Act alleging that the companies engaged in schemes to evade customs duties on imports of aluminum extrusions from the People’s Republic of China (PRC). The companies sell shower doors and shower enclosures made with the PRC-manufactured aluminum extrusions.
“The nation’s customs laws are designed to protect domestic manufacturers from unfair competition abroad,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “The Department of Justice will pursue those who seek an unfair advantage in U.S. markets by evading the duties owed on goods imported into this country.”
The government’s complaint alleged that C.R. Laurence, Southeastern and Waterfall made false declarations to the U.S. Department of Homeland Security’s Customs and Border Protection (CBP) to avoid paying antidumping and countervailing duties on aluminum extrusions imported from manufacturer Tai Shan Golden Gain Aluminum Products Ltd. in the PRC. The Department of Commerce assesses, and CBP collects, antidumping and countervailing duties to protect U.S. businesses and level the playing field for domestic products. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. C.R. Laurence, Southeastern, and Waterfall allegedly misrepresented that the “country of origin” of the aluminum extrusions was Malaysia, when the goods were manufactured in the PRC and merely shipped through Malaysia – a practice called “transshipping.” Imports of PRC-manufactured aluminum extrusions have been subject to antidumping and countervailing duties since 2010. No such duties are due on imports of such items from Malaysia.
The government’s complaint also alleged that C.R. Laurence, Southeastern and Waterfall purchased PRC-made aluminum extrusions imported by other domestic companies and caused or conspired with those importers to make false declarations to CBP to evade duties.
“Countervailing and antidumping duties are designed to provide a level playing field between companies that purchase products domestically and those that import products from countries which subsidize their production,” said U.S. Attorney A. Lee Bentley III for the Middle District of Florida. “Importers who use fraud to avoid paying these duties gain an unfair business advantage over competitors who abide by the rules. This settlement reaffirms our commitment to ensuring that business competition remains fair in our district.”
“Antidumping and countervailing duties are critical to ensure fair competition for U.S. manufacturers,” said Commissioner R. Gil Kerlikowske of CBP. “U.S. Customs and Border Protection works diligently with the Department of Justice, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the U.S. Department of Commerce to aggressively pursue duty evasion.”
The allegations resolved by the settlements announced today were originally brought by whistleblower James F. Valenti Jr. in the U.S. District Court for the Middle District of Florida under the qui tam provisions of the False Claims Act. The act permits private parties to sue on behalf of the government those who falsely claim federal funds or, as in this case, avoid paying funds owed to the government. The United States may intervene in and take over the lawsuit, as it did in this case. The act allows the whistleblower to receive a share of any funds recovered through the lawsuit. Valenti will receive $555,100 as his share of these settlements.
The case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, CBP, U.S. Immigration and Customs Enforcement and the Department of Commerce’s International Trade Administration.
The lawsuit is captioned United States ex rel. Valenti v. Tai Shan Golden Gain Aluminum Products Ltd., et al., Case No. 11-cv-368 (M.D. Fla.). The claims resolved by the settlements are allegations only; there has been no determination of liability.
Three Importers to Pay over $3 Million to Settle False Claims Act Suit Alleging Evaded Customs DutiesRead the Press Release
WASHINGTON – The Department of Justice announced today that California-based C.R. Laurence Co. Inc., Florida-based Southeastern Aluminum Products Inc. and Texas-based Waterfall Group LLC have agreed to pay $2,300,000, $650,000 and $100,000, respectively, to resolve a lawsuit brought by the United States under the False Claims Act alleging that the companies engaged in schemes to evade customs duties on imports of aluminum extrusions from the People’s Republic of China (PRC). The companies sell shower doors and shower enclosures made with the PRC-manufactured aluminum extrusions.
“The nation’s customs laws are designed to protect domestic manufacturers from unfair competition abroad,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “The Department of Justice will pursue those who seek an unfair advantage in U.S. markets by evading the duties owed on goods imported into this country.”
The government’s complaint alleged that C.R. Laurence, Southeastern and Waterfall made false declarations to the U.S. Department of Homeland Security’s Customs and Border Protection (CBP) to avoid paying antidumping and countervailing duties on aluminum extrusions imported from manufacturer Tai Shan Golden Gain Aluminum Products Ltd. in the PRC. The Department of Commerce assesses, and CBP collects, antidumping and countervailing duties to protect U.S. businesses and level the playing field for domestic products. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. C.R. Laurence, Southeastern, and Waterfall allegedly misrepresented that the “country of origin” of the aluminum extrusions was Malaysia, when the goods were manufactured in the PRC and merely shipped through Malaysia – a practice called “transshipping.” Imports of PRC-manufactured aluminum extrusions have been subject to antidumping and countervailing duties since 2010. No such duties are due on imports of such items from Malaysia.
The government’s complaint also alleged that C.R. Laurence, Southeastern and Waterfall purchased PRC-made aluminum extrusions imported by other domestic companies and caused or conspired with those importers to make false declarations to CBP to evade duties.
“Countervailing and antidumping duties are designed to provide a level playing field between companies that purchase products domestically and those that import products from countries which subsidize their production,” said U.S. Attorney A. Lee Bentley III for the Middle District of Florida. “Importers who use fraud to avoid paying these duties gain an unfair business advantage over competitors who abide by the rules. This settlement reaffirms our commitment to ensuring that business competition remains fair in our district.”
“Antidumping and countervailing duties are critical to ensure fair competition for U.S. manufacturers,” said Commissioner R. Gil Kerlikowske of CBP. “U.S. Customs and Border Protection works diligently with the Department of Justice, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the U.S. Department of Commerce to aggressively pursue duty evasion.”
The allegations resolved by the settlements announced today were originally brought by whistleblower James F. Valenti Jr. in the U.S. District Court for the Middle District of Florida under the qui tam provisions of the False Claims Act. The act permits private parties to sue on behalf of the government those who falsely claim federal funds or, as in this case, avoid paying funds owed to the government. The United States may intervene in and take over the lawsuit, as it did in this case. The act allows the whistleblower to receive a share of any funds recovered through the lawsuit. Valenti will receive $555,100 as his share of these settlements.
The case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, CBP, U.S. Immigration and Customs Enforcement and the Department of Commerce’s International Trade Administration.
The lawsuit is captioned United States ex rel. Valenti v. Tai Shan Golden Gain Aluminum Products Ltd., et al., Case No. 11-cv-368 (M.D. Fla.). The claims resolved by the settlements are allegations only; there has been no determination of liability.
Three Convicted in Five-Year Drug ConspiracyRead the Press Release
BROWNSVILLE, Texas – Mario Enrique Patlan, 45, Cristina Patlan, 23, and Reymundo Abel Brown Jr., 27, have all entered guilty pleas today in a long-running effort to smuggle drugs via UPS, announced U.S. Attorney Kenneth Magidson. All three are Brownsville residents.
Mario Patlan and Brown pleaded guilty to conspiracy to possess with intent to distribute more than 100 kilograms of marijuana and 500 grams of cocaine. As part of his plea, Mario Patlan is also forfeiting his interest in two residences in Brownsville. The conspiracy ran from 2007 to 2012.
Mario Patlan’s daughter - Cristina Patlan - entered her plea to possessing 37 kilograms of marijuana with intent to distribute in November 2011.
Evidence presented in support of the pleas demonstrated that Mario Patlan and Brown used their positions at UPS to receive and forward drug-ladened packages via UPS air and ground transportation. The packages were received in the area of Cameron County and were shipped throughout the U.S. During the time of the conspiracy, more than 1000 kilograms of marijuana was shipped via UPS to states such as Minnesota, Indiana, Pennsylvania, Georgia, Florida, Ohio, Michigan and New York.
As part of her plea, Cristina Patlan admitted she worked as a recruiter or go-between for her father and various drug trafficking organizations.
The trio will remain in custody pending sentencing, which is set for May 18, 2015, before U.S. District Judge Andrew Hanen. At that time, Mario Patlan and Brown face a minimum of five and up to 40 years in federal prison and a possible $5 million fine. Cristina Patlan faces up to five and a possible $250,000 fine.
The charges are the result of an investigation by the Drug Enforcement Administration and Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys David Lindenmuth, Lori Roth and Charles Lewis are prosecuting the case.Three Arkansas Men Sentenced to A Total of over 27 Years for Unrelated Drug Trafficking OffensesRead the Press Release
Texarkana, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Antoine C. Cook, aka “Twan”, age 42, of Junction City, Arkansas, was sentenced to 168 months imprisonment followed by five years of supervised release for Conspiracy to Distribute Methamphetamine; James A. Barron, aka “Aunt C”, age 40, of Hot Springs, was sentenced to 108 months imprisonment followed by three years of supervised release for Distribution of Cocaine Base; and Brodney Dixon, age 28, of Texarkana, Texas, was sentenced to 57 months imprisonment followed by three years of supervised release for Distribution of Methamphetamine. The Honorable Susan O. Hickey handed down the sentences in United States District Court in Texarkana.
U.S. Attorney Eldridge commented, “The trafficking of illegal drugs represents a tremendous problem in our communities by bringing crime and violence onto our streets and exposing our children to serious risks. These sentences pronounced today show that our office, joined by federal, state, and local law enforcement agencies, is committed to aggressively identifying, investigating, and prosecuting illegal drug trafficking in communities across the Western District of Arkansas. ”
“The law enforcement organizations in our state and the U.S. Attorney’s Office have successfully collaborated in order to put these three defendants in jail for a very long time as a result of their desire to supply methamphetamine and crack to citizens in Western Arkansas,” stated Assistant Special Agent in Charge James Hendricks, “We are here, we are working together, and we are committed to investigating these illegal operations.”
“Once again, thanks to the efforts of the state, federal and local law enforcement agencies in investigating and bringing to justice upper level drug offenders,” said David Butler, Prosecuting Attorney for the 13th Judicial District. “These cases demonstrate the benefits associated with the multi-agency task force approach in apprehending and prosecuting drug dealers.”
Further information concerning each defendant is below:
Antoine Cook: Agents with the FBI and FBI Task Force initiated an estimated one year investigation targeting gang members who were involved in the trafficking of narcotics and
firearms in El Dorado, Arkansas and surrounding areas. During the investigation, agents identified the defendant, Antoine Cook, as a major distributor of methamphetamine in Union County, Arkansas and elsewhere in the Western District of Arkansas. From June 17, 2013 until August 16, 2013, pursuant to orders of United States District Judge Susan O. Hickey of the Western District of Arkansas, agents intercepted numerous electronic and wire communications in which Cook, using coded language, discussed the distribution of methamphetamine and collection of drug debts. During the investigation, agents were able to make a controlled purchase of approximately four ounces of methamphetamine from Cook for $4,400. A Federal Grand Jury issued the indictment for Cook on September 18, 2013, and in February, 2014, Cook pleaded guilty to conspiring to distribute over 500 grams of methamphetamine. The investigation revealed that he was responsible for distributing between 1.5 kilograms and 5 kilograms of methamphetamine. As a five time convicted felon with at least two prior felony convictions of a controlled substance offense, Cook is a career offender.James Barron: According to court records, in October, 2012, during the course of an ongoing investigation, law enforcement arranged for a controlled purchase of a quarter ounce of crack cocaine from Barron. With officers maintaining surveillance, Barron arrived at a local Hot Springs business to conduct the drug transaction. Officers were then able to observe Barron exchange crack cocaine for U.S. currency. The suspected crack cocaine was submitted to the Arkansas State Crime lab where it was confirmed to contain cocaine base. During the course of the investigation, several other purchases of crack cocaine were arranged and made with the defendant before and after October, 2012. Barron pleaded guilty to the charge on August 15, 2014.
Brodney Dixon: According to court records, law enforcement agents utilized a confidential informant to arrange for a controlled purchase of methamphetamine from Dixon on May 2, 2012. While under officer surveillance, the informant met with Dixon in Hempstead County, Arkansas, where Dixon provided a baggie containing a substance he represented to be methamphetamine in exchange for U.S. currency. The suspected methamphetamine was submitted to the Arkansas State Crime Laboratory where it was confirmed to contain methamphetamine. A Federal Grand Jury issued an indictment for Dixon on January 29, 2014, and he pleaded guilty to one count of distribution of methamphetamine on August 21, 2014.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hot Springs Police Department, the South Central Drug Task Force, and the Arkansas State Police. The investigation into Cook’s Drug Trafficking Organization was a joint operation between the 13th Judicial Drug Task Force, the Union County Sheriff’s Office, the El Dorado Police Department, the FBI, the FBI Task Force, the Camden Police Department, the Magnolia Police Department, the Ouachita County Sheriff’s Office, the Columbia County Sheriff’s Office, the Ashley County Sheriff’s Office, the Arkansas State Police, and the Drug Enforcement Administration. Assistant U.S. Attorney Ben Wulff, Assistant U.S. Attorney Kenny Elser, and Assistant U.S. Attorney Jonathan Ross prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Tennessee Resident Sentenced to 15 Years in Prison for Sex Trafficking of A MinorRead the Press Release
A Memphis, Tennessee, man was sentenced today to 15 years in prison for the sex trafficking of a 16-year-old girl, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Edward L. Stanton III of the Western District of Tennessee and Special Agent in Charge Todd McCall of the FBI’s Memphis Division.
Laron Matlock, 33, of Memphis, admitted during his plea hearing that, with the assistance of a co-defendant, he facilitated the travel of a 16-year-old girl from Chicago to Memphis in July 2012 for the purpose of prostitution. Matlock then transported the minor from Memphis to Nashville, Tennessee, where she engaged in prostitution. Matlock admitted that he facilitated the online advertisement of the minor on www.backpage.com by paying the cost associated with the posting. Matlock was arrested on Aug. 1, 2012, after he returned to Memphis with the victim and attempted to take her to a customer’s house for the purpose of prostitution.
U.S. District Judge Jon Phipps McCalla of the Western District of Tennessee imposed the sentence.
This case was investigated by the Civil Rights Human Trafficking Taskforce, the FBI’s Memphis Division and the Shelby County Sheriff’s Department. This case was prosecuted by Assistant U.S. Attorney Brian K. Coleman of the Western District of Tennessee and Trial Attorney Mi Yung Park of the Criminal Division’s Child Exploitation and Obscenity Section.
Tampa Man Convicted of Commercial Armed RobberyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Shamorcus Brandan Nesbitt (28, Tampa) guilty of conspiracy to interfere with commerce by robbery, interference with commerce by robbery, carrying a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm and ammunition. Nesbitt faces a mandatory minimum penalty of 37 years in federal prison. His sentencing hearing is scheduled for May 19, 2015. He was indicted on June 19, 2014.
According to evidence presented at trial, law enforcement officers identified Nesbitt and England Alexander Wilson as suspects in several commercial armed robberies in the Tampa Bay area. On May 20, 2014, Nesbitt and Wilson robbed a Little Caesar’s Pizza in Tampa. After tracking their movements, investigators recovered items used in the robbery, including clothing, gloves, and the firearm. Ultimately, both Nesbitt’s and Wilson’s DNA was found on gloves used in the robbery.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Hernando County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Citrus County Sheriff’s Office, the Pasco County Sheriff’s Office, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Carlton C. Gammons and Josephine W. Thomas.
Syracuse Man Sentenced to 30 Years on Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced that RONALD J. RICHARDS, 59, of Syracuse, New York was sentenced today in United States District Court following his earlier plea of guilty to a six-count Information charging him with receipt, distribution, and possession of child pornography.
United States District Judge David N. Hurd sentenced RICHARDS to a total of 30 years imprisonment, to be followed by 20 years of supervised release. The sentence consists of concurrent 20 year terms on two counts of distribution of child pornography to run consecutively to concurrent 10 year terms on four counts of receiving and possessing child pornography. RICHARDS will also be required to register as a sex offender.
RICHARDS’ arrest came about as a result of an investigation by the United States Department of Homeland Security, Homeland Security Investigations. Agents discovered that RICHARDS had been using his email account to trade child pornography over the Internet with other individuals, including two men, one in Indiana and one in Utah, who had disclosed to RICHARDS that they produced the images they sent to him. Agents later discovered that RICHARDS had also engaged in sexually explicit chats with two minor female children, one 15, and one 13 years old, solicited illicit images from them, and later distributed the images to others. In all, agents recovered from RICHARDS’ computers and thumb drives more than 3,700 images and 48 video files depicting the abuse of children, some as young as one and three years old.
RICHARDS was prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Sturgis Couple Sentenced in Visa Fraud SchemeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sturgis. South Dakota, couple were sentenced on January 29, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Scott Kaubisch, age 51, convicted of False Swearing in Immigration Matter, was sentenced to 14 months in custody, 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Shiela Kaubisch, a/k/a Maria Shiela Santos Kaubisch, age 54, convicted of Misprison of a Felony, was sentenced to 60 months of probation and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. The Kaubisches were also ordered to pay $154,586 in restitution to victims of the fraud.
The convictions stem from several occasions wherein Scott Kaubisch sought and received payments from alien workers seeking H-2B visas, yet falsely declared on the Application for Temporary Employment Certification filed with the USCIS, the DOL Form 9142, and the Department of Homeland Security form I-129, that he had not sought or received such payments. Shiela Kaubisch knew that Scott Kaubisch was falsifying official documents and did conceal that fact.
The investigation was conducted by the U.S. Department of State - Diplomatic Security Service, U.S. Immigration and Customs Enforcement's Homeland Security Investigations , U.S. Department of Labor, Office of Inspector General - Office of Labor Racketeering and Fraud Investigation, and the U.S. Citizenship and Immigration Services – Fraud Detection and National Security. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
St. Petersburg Man Convicted of Federal Firearms Charge, Witness Tampering, and Obstruction of JusticeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Demetrius Sharron Davis (33, St. Petersburg) guilty of being a felon in possession of a firearm and ammunition, tampering with a witness, and obstruction of justice. He faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for May 4, 2015.
Davis was originally indicted on May 13, 2014, for being a felon in possession of a firearm and ammunition. A superseding indictment was returned on October 21, 2014, charging him with the witness tampering and obstruction offenses.
According to testimony and evidence presented at trial, on October 27, 2013, Davis threatened the mother of his children with a loaded firearm. During the altercation, Davis said to her that the “kids are about to see you in a body bag” and that the “kids won’t have a mother or a father.” He made these statements while pointing the firearm at her as she held their four-year-old daughter in her lap. Davis had previously been convicted of a felony, and was therefore prohibited from possessing a firearm or ammunition under federal law.
As the original trial date approached in October 2014, Davis called his 10 year-old daughter, who had also witnessed him with the firearm and was scheduled to be a witness at trial. During the phone call, Davis attempted to prevent his daughter from testifying by telling her that “you don’t need to get on the stand 'cause that'll make daddy go to jail for a long time.” He also made further statements in an attempt to persuade her not to testify.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Adam M. Saltzman.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
South Euclid Woman Charged for Falsely Claiming $1 Million in Tax ReturnsRead the Press Release
A one-count criminal information was filed against Victoria Mason, 31, of South Euclid, charging her with conspiracy to defraud the government with respect to filing fraudulent income tax refund claims, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service, Cincinnati Field Office.
Mason, acting together with separately charged defendants Veronica Mason, Tenisha Cleveland, and other individuals not yet charged, engaged in a false tax refund scheme in which they prepared at least 64 false income tax returns for the years 2008 through 2011, for approximately 27 persons, which claimed income tax refunds that were greater than the actual refunds, if any, to which the taxpayers were entitled, according to the information.
On each return, Mason and her cohorts generated false refund claims, at least in part, by reporting a falsely inflated or fictitious wage income and a resulting false earned income credit, according to the information.
On some returns, Cleveland and her confederates also claimed false dependents and/or reported false or inflated amounts of tax withholding, sometimes supported by fictitious Wage and Tax Statements, Form W-2. Mason and Veronica Mason, who has been charged in a separate criminal information, filed the returns electronically on behalf of taxpayers, through private and public internet connections. Generally, the co-conspirators did not provide a copy of the return to the taxpayer, and the taxpayer did not know the amount of the refund claimed, according to the information.
The electronic filings included requests that the IRS direct-deposit refunds into bank accounts owned or controlled by Cleveland, Veronica Mason and their co-conspirators, or provide the refunds on pre-paid debit cards purchased by the co-conspirators. After receiving the refunds, Mason, Cleveland, Veronica Mason and their co-conspirators paid only a portion of the refund, if any, to the taxpayer, according to the information.
According to the information, Mason and her co-conspirators inflated the refund claims on the 64 charged returns by a total of approximately $114,930. Additionally, Mason and her co-conspirators falsely filed an additional 823 fictitious claims for tax refunds with the IRS, which inflated the total refund claims by the conspirators by an additional $1,079,750. The IRS issued refunds totaling approximately $815,577.27 to Mason and her co-conspirators.If convicted, the defendant’s sentence will be determined by the Court after review of the factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the Internal Revenue Service – Criminal Investigations.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
South Dakota Woman Sentenced to 22 Years for MurderRead the Press Release
BILLINGS – The United States Attorney’s Office announced that today, in U.S. District Court in Billings, a Rapid City, South Dakota woman received 22 years in federal prison for her role in a 2013 murder on the Northern Cheyenne Indian Reservation. Eugenia Ann Rowland, 42, was sentenced by U.S. District Judge Susan Watters to 264 months in custody followed by 5 years of supervised release in connection with her October 2014 guilty plea to second degree murder. In addition, Rowland was ordered to pay $13,215 in restitution.
Assistant U.S. Attorney Lori Suek told the court that Eugenia Rowland and her common-law husband were drinking with the victim in an abandoned trailer in Lame Deer on the Fourth of July, 2013. After not coming home, the victim was reported missing by family members. Initially treated as a missing person investigation, Rowland and her husband were interviewed several times by Bureau of Indian Affairs (BIA) law enforcement. The victim’s body was found on July 8, 2013 near the Lame Deer rodeo grounds.
Before the victim’s body was found, Rowland and her husband left the Northern Cheyenne reservation to stay with relatives near the Wind River Reservation in Wyoming. Law enforcement officers learned that the couple had borrowed a car from a family member and had returned the car with a very strong odor emanating from the back seat. After a search of the car, the victim’s DNA was found on a rear seat cushion taken from the car.
U.S. Attorney Mike Cotter said that “Today’s sentence closes a sad and tragic chapter in the senseless death of a young woman. We hope the family finds some degree of solace in the fact that justice has come to one of the individuals responsible for their loss.”
The investigation was a collaborative effort between the Bureau of Indian Affairs, Federal Bureau of Investigation, Lake County Sheriff’s Office, Flathead Tribal Police Department, Wind River Police Department, Rapid City Police Department, Pine Ridge Criminal Investigations, BIA Rapid City Drug Unit and Pennington County Sheriff’s Office.
Smithville Man Sentenced to Time Served, Home Detention, $1,600 for Post Office BurglaryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BRANDON ANDREW DUNCAN, age 24, formerly of Smithville, Oklahoma, was sentenced in federal court today for POST OFFICE BURGLARY, in violation of Title 18, United States Code, Section 2115. DUNCAN was given credit for time served, approximately 7 ½ months incarceration. The defendant was also sentenced to 4 months of home detention, 2 years of supervised release and ordered to pay restitution in the amount of $1,636.50.
The charges arose from an investigation by the McCurtain County Sheriff’s Office and the United States Postal Service. DUNCAN was indicted in June, 2014 and pled guilty in September, 2014.
The Indictment alleged that between December 21, 2013, and December 23, 2013, the exact date unknown, within the Eastern District of Oklahoma, the defendant, BRANDON ANDREW DUNCAN, did forcibly break into a post office located at Smithville, Oklahoma, with the intent to commit a larceny in such post office.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Dean Burris represented the United States.
Shipping Company and Chief Engineer Charged with Dumping Oil in Alaska's Exclusive Economic ZoneRead the Press Release
Anchorage, Alaska – Karen L. Loeffler, U.S. Attorney, announced today that AML Ship Management GMBH, a German company, and Nicolas Sassin, Chief Engineer of a vehicle carrier ship it operated, the M/V City of Tokyo, were both charged with knowingly dumping oil into United States’ waters off the coast of Alaska in August 2014 in violation of the Clean Water Act.
AML and Chief Engineer Nicolas Sassin have also been charged in separate cases filed in the District of Oregon with violating the Act to Prevent Pollution from Ships (APPS) for knowingly creating and presenting false records to the U.S. Coast Guard when it arrived in port in Portland, Oregon in September 2014. The Clean Water Act charges in Alaska and the APPS charges in Oregon are felony offenses.
Under the terms of a plea agreement filed in federal court today, AML will plead guilty to the Clean Water Act and APPS charges, pay a total of $800,000 in fines and community service payments, implement a comprehensive Environmental Compliance Plan, and will be placed on probation for three years. Chief Engineer Sassin also signed a plea agreement filed in court today agreeing to plead guilty to the Alaska and Oregon charges.
Defendant AML is the operator of the Motor Vessel City of Tokyo. The M/V City of Tokyo is a vehicle carrier vessel that operates under the flag of the Republic of Liberia. It was built in 1987, weighs approximately 42,247 gross tons, and is 603 feet long. Defendant Nicolas Sassin worked as the Chief Engineer of the M/V City of Tokyo between May 28, 2014 and September 6, 2014, when the vessel arrived in Oregon and was contacted by the U.S. Coast Guard.
On August 22, 2014, the M/V City of Tokyo departed South Korea and travelled through the Exclusive Economic Zone (EEZ) of the United States off the coast of Alaska arriving in Canada on September 2, 2014. The vessel departed Canada on September 3, 2014. The M/V City of Tokyo arrived in Tacoma, Washington on September 4, 2014, and remained there until departing for Portland, Oregon. The M/V City of Tokyo arrived in Portland, Oregon on September 5, 2014.
As the operator of the M/V City of Tokyo, AML was responsible for operating the Oil Water Separator (OWS) and maintaining an accurate Oil Record Book (ORB). As the Chief Engineer, Nicolas Sassin was responsible for the pollution control equipment in the M/V City of Tokyo’s engine room, including running the OWS and maintaining the Oil Record Book (ORB).
The federal charges allege that on or about August 29, 2014, Chief Engineer Sassin knowingly discharged oily bilge water into the United States’ Exclusive Economic Zone off the coast of Alaska which may have affected natural resources belonging to, appertaining to, and under the exclusive management authority of the United States and in a quantity that may be harmful.
Specifically, AML admits that while the M/V City of Tokyo was approximately 165 nautical miles south of the Aleutian Islands, specifically Sanak Island, Alaska, the Chief Engineer used an illegal pump system to knowingly discharge approximately 4,500 gallons of oily bilge water directly overboard. The illegal pump system consisted of a fabricated flanged fitting that connected the overboard discharge valve and pipe to a pneumatic Wilden pump. The pump’s suction was connected to a hose that was fed down the sounding tube for the bilge holding tank. The illegal pump system allowed the vessel’s crew to discharge oily bilge water from the bilge holding tank directly overboard without processing it through the required pollution prevention equipment (OWS and oil content meter). The overboard discharge created a sheen in the water off the stern of the vessel, and this was witnessed by crewmembers aboard the M/V City of Tokyo. The illegal pump system was dismantled prior to the vessel’s arrival in Portland.
AML knowingly failed to maintain an accurate ORB as required by the Act to Prevent Pollution from Ships (APPS).
Chief Engineer Sassin and AML are also charged with failing to record this discharge of oil into the sea by way of the illegal pump system and overboard discharge valve in the M/V City of Tokyo’s ORB, and with knowingly presenting the false and fictitious ORB to the U.S. Coast Guard and/or had it available for inspection by the U.S. Coast Guard when the M/V City of Tokyo arrived in Portland, Oregon on September 5, 2014.
The M/V City of Tokyo was initially inspected and detained in Portland, Oregon by the U.S. Coast Guard marine inspectors. These cases were investigated by the U.S. Coast Guard Investigative Service and are being prosecuted jointly by the U.S. Attorney’s Office for the District of Alaska, the U.S. Attorney’s Office for the District of Oregon, and the Department of Justice’s Environmental Crimes Section.
Sentencings for February 6-10, 2015Read the Press Release
Ryon Rudy James Herbst, 27, of Lander, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 10, 2015, for conspiracy to possess with intent to distribute heroin. Herbst was arrested in Cheyenne, Wyoming. He received 70 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Juan Claudio Ontiveros, 28, of Greeley, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 6, 2015, for being a felon in possession of a firearm. Ontiveros was arrested in Greeley, Colorado. He received 108 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case was investigated by the Casper Police Department, the Natrona County Sheriff’s Office and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.
Scranton Man Charged with Attempt to Entice A Minor via the InternetRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a felony Criminal Information charging Hugo Perez Banda, age 27, of Scranton, Pennsylvania, was filed today in the United States District Court in Scranton.
According to United States Attorney Peter Smith, Perez was charged with allegedly attempting to entice a minor to engage in an unlawful sexual act by use of the internet during January 2014.The government filed a plea agreement with the defendant which is subject to approval by the Court.
The offense call for a mandatory minimum sentence of 10 years, a maximum sentence of up to life and a $250,000 fine.
The investigation was conducted by the Department of Homeland Security, Homeland Security Investigations, and the Scranton, Pennsylvania Police Department. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Rochester Man Pleads Guilty to Producing Counterfeit Military Id Cards and Making False StatementsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. U.S. Attorney William J. Hochul, Jr. announced that Mark Allen Kelly, 54 of Rochester, NY, pleaded guilty to possessing and producing counterfeit military ID cards and making false statements to federal agents before U.S. District Court Judge Frank P. Geraci. Each charge carries a maximum penalty of five years in prison, a fine of up to $250,000, or both.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that Kelly repeatedly lied about being an Officer in the United States Navy. Kelly regularly wore naval uniforms around town as well as to work, where he falsely told his employer that he was working at area Reserve Centers after his shift. The defendant lied about being on active duty with the Navy when he rented an apartment in Rochester and received a military discount on his rent as well as other financial benefits as a result of his false statements.
The defendant’s landlord became suspicious about Kelly’s military affiliation when his first month’s rent check bounced. The landlord also had a friend, who was a former United States Marine Corps Officer, who questioned the many ribbons and awards displayed on Kelly’s uniforms which included the Silver Star and a Bronze Star awarded for Valor. Kelly also wore Naval Flight Officer’s Wings. They confronted Kelly in June of 2014 in the presence of a Rochester Police Officer and Kelly presented a counterfeit, but authentic looking military Common Access Card to support his false personation.
In addition to wearing a Navy uniform around town, the defendant also regularly wore full dress naval uniforms at Veterans and ceremonial events. This included a memorial for a fallen Marine killed in Afghanistan in August 2014, where Kelly presented a flag to the Marine’s parents. When questioned, the defendant supported his false claims by presenting an authentic looking, but fraudulently made, military ID card.
The defendant’s conduct came to the attention of the Naval Criminal Investigative Service (NCIS) who began a criminal investigation after getting a tip from the defendant’s landlord. During the investigation, NCIS Agents from Naval Weapons Station Earle traveled to Rochester to interview witnesses. In September 2014, Kelly was interviewed by NCIS Agents and he made several false material statements. Kelly lied to the agents about his status with the Navy, his rank, his dates of service, and the characterization of his discharge. Each time agents confronted Kelly about his false statements, he would change his story to try to alter the facts to mislead the agents.
At the time agents interviewed Kelly, he was wearing a naval uniform without rank insignia or ribbons. He initially claimed he liked wearing the unmarked uniform because it was comfortable. However, Agents noticed that his uniform shirt had fresh holes consistent with recent wearing of rank insignia and a rack of ribbons. When confronted, Kelly produced a rack of ribbons which he had removed from his shirt before meeting with the agents. The rack contained 28 ribbons including awards for service in Iraq and Afghanistan, as well as for service in support of Operation Desert Storm and the liberation of Kuwait. Kelly also had several Navy uniforms in his apartment including a Navy Dress Blue Uniform, a Dress White Uniform, and a Digital Pattern Camouflage Uniform, all with Officer Rank insignia attached. Kelly also had multiple awards and framed certificates on his walls commending his bravery and valor for Combat Operations in both Iraq wars as well as Afghanistan.
However, during the investigation, NCIS Agents reviewed Kelly’s official military record and learned that Kelly was actually discharged under Other Than Honorable conditions from the Navy in 1981 for misconduct. At the time of his discharge, Kelly held the rank of Seaman Recruit or E-1, the lowest enlisted rank in the Navy. Records showed that during the two and a half years Kelly was actually in the Navy, he was never a commissioned Officer or a Chief Petty Officer as he had claimed to investigators.
Naval criminal investigators also recovered several false military ID cards in various stages of production from the defendant’s place of employment after he was terminated. These authentic looking, but counterfeit, cards contained the defendant’s photograph in uniform, and contained various fraudulent ranks including Master Chief Petty Officer and Lieutenant Commander.
The plea is the culmination of an investigation by Special Agents of the Naval Criminal Investigative Service, under the direction of Special Agent in Charge Leo Lamont, NCIS Northeast Field Office.
Sentencing is scheduled for May 6, 2015 at 3:30 p.m. before Judge Geraci.
Residente De Memphis Condenado A 15 Años Por Trafico Sexual De Un MenorRead the Press Release
MEMPHIS, Tennessee. - En el día de hoy, el Juez Superior del Distrito Jon Phipps McCalla condenó a Laron Matlock, de 33 años de edad, de Memphis, TN, a 15 años de prisión por tráfico sexual de un menor de edad, anunció Edward L. Stanton III, Fiscal Federal para el Distrito Oeste de Tennessee; Leslie R. Caldwell, Fiscal Federal Auxiliar de la División Criminal del Departamento de Justicia; y Todd McCall, Agente Especial a Cargo de la Oficina Federal de Investigaciones (FBI).
Matlock, con la asistencia de uno de los acusados, facilitó el viaje de una menor de edad de dieciséis años para viajar de Chicago, Illinois a Memphis en julio de 2012 para fines de prostitución. Matlock transportó la menor de Memphis a Nashville, Tennessee, donde se dedicaba a la prostitución como consecuencia de ella estar promoviéndose en www.backpage.com. Matlock facilitó la publicidad en línea mediante el pago de los costos asociados con el destino. Matlock condujo posteriormente a la menor de vuelta a Memphis y, antes de ser detenido, la transportó a la casa de un cliente en un intento para que se dedique en mayor medida a la prostitución.
El Fiscal Federal Auxiliar Brian K. Coleman y el Abogado Litigante Mi Yung Park, con la Sección de Explotación y Obscenidad del Departamento de Justicia (CEOS) representaron a Estados Unidos en el caso. Este caso es el resultado de los esfuerzos de la investigación de la Oficina Federal de Investigaciones División de Memphis, el Grupo de Misiones Especiales de los Derechos Civiles de la Trata de Humanos y el Departamento del Sheriff del Condado de Shelby.
English Version
Rapid City Man Sentenced for EscapeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Escape from Custody was sentenced on February 4, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Benjamin Kitteaux, age 26, was sentenced to 6 months in custody and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
In August 2014, Kitteaux left Community Alternatives of the Black Hills, where he was serving the remainder of a federal prison sentence, and did not return as required.
The investigation was conducted by the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Ben Patterson.
Kitteaux was immediately turned over to the custody of the U.S. Marshals Service.
Providence Woman Convicted of Fraudulently Collecting More Than $47,000 in Social Security Widower’s BenefitsRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence on Tuesday convicted a Providence woman of making false statements regarding her marital status in order to collect more than $47,000 in widower’s benefits from the Social Security Administration following the death of her former husband, announced United States Attorney Peter F. Neronha and Scott E. Antolik, Special Agent in Charge of the Boston field office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
Sandra Money, 68, was found guilty of one count each of false statement to a government agency and theft of government funds. Money faces statutory penalties of up to 15 years in federal prison and a fine of up to $500,000 when she is sentenced by U.S. District Court Chief Judge William E. Smith on May 18, 2015.
According to the government’s evidence presented at trial, on October 19, 2011, Sandra Money telephoned the Providence office of the Social Security Administration to apply for widower’s benefits, reporting that her husband, Thomas Money, passed away in March 2011. She stated that she was married to Thomas Money since June 28, 1986, and that their marriage ended at the time of his death in March 2011.
Following the completion of the telephone application, a written notice was sent to the defendant setting forth that the information provided in the telephone application was true. The notice directed the defendant to contact the Social Security Administration within 10 days if she disagreed with any of the information contained in the notice. The defendant did not contact the Social Security Administration to dispute the information contained in the notice.
Government records show that every month, between December 2011 until January 2014, the U.S. Treasury electronically deposited between $1,837 and $1,903 into a bank account belonging to Sandra Money. In total, the U.S. Treasury deposited more than $47,000 into Ms. Money’s account.
Based on information developed at a later date by Social Security Administration agents, it was determined that Sandra Money and Thomas Money were not married at the time of Mr. Money’s death. R.I. Family Court records show that a Judgment of Divorce was entered on July 24, 1990, based on a complaint filed by Sandra Money.
The case was prosecuted by Assistant U.S. Attorney Zechariah Chafee.
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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]Port Arthur Businessman Sentenced for Disaster Loan FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The former owner of a Port Arthur, Texas business has been sentenced for disaster loan fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Kenneth W. Matthews, 59, of Fort Pierce, Florida pleaded guilty to on Mar. 12, 2014 to conspiracy to defraud the Small Business Administration of disaster loan funds and was sentenced to 5 years probation today by U.S. District Judge Thad Heartfield. Matthews was also ordered to pay restitution in the amount of $500,000 to the SBA.
According to information presented in court, from January 2008 to May 2010, Matthews conspired with his general contractor and subcontractor to submit falsely inflated invoices and checks for repair work done after Hurricanes Humberto and Ike in order to obtain low interest disaster repair loans extended by the Small business Administration. Matthews, the former owner of MegaBowl in Port Arthur, received SBA disaster loan proceeds of $750,000 after Hurricane Humberto and $760,000 after Hurricane Ike. After receiving the loan disbursements based upon the false invoices, the general contractor and a subcontractor would receive from Matthews a lesser amount than invoiced for the work actually done, or would kickback to Matthews a portion of the loan disbursement paid to them. The loan funds were disbursed solely for repairs and other expenses associated with the hurricanes and were not allowed for other general business or personal use. Matthews’ declining health was a factor in his sentencing.
In September 2005, the U.S. Department of Justice created the Hurricane Katrina Fraud Task Force, designed to deter, investigate and prosecute disaster-related federal crimes such as charity fraud, identity theft, procurement fraud and insurance fraud. The Hurricane Katrina Fraud Task Force includes members of the FBI, the Federal Trade Commission, the U.S. Postal Inspection Service, and the Executive Office for United States Attorneys, among others.
This case was investigated by the Small Business Administration-OIG and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Robert L. Rawls.Pine Ridge Woman Indicted for TheftRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman has been indicted by a federal grand jury for Theft of Government Property.
Bonita Ghost Dog, age 54, was indicted on January 21, 2015. She appeared before U.S. Magistrate Judge Veronica Duffy on January 29, 2015, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims’ Fund. Restitution may also be ordered.
The Indictment charges that between May 2006 and September 2013, at Pine Ridge, Ghost Dog sold items belonging to the U.S. Department of Agriculture, Food Distribution Program, and kept the money for her personal gain.
The charge is merely an accusation and Ghost Dog is presumed innocent until and unless proven guilty.
The investigation was conducted by the U.S Department of Agriculture. Assistant U.S. Attorney Ben Patterson is prosecuting the case. Ghost Dog was released pending trial. A trial date has not been set.
Pharmacy Owner Pleads Guilty to Drug and Money Laundering OffensesRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that Jorge Otano (53, Cape Coral) has pleaded guilty to conspiracy to possess with intent to distribute and to distribute oxycodone, and distributing the drug outside the usual course of professional practice for other than legitimate medical purposes. He also pleaded guilty to conspiracy to commit structuring, evading a currency-transaction reporting requirement, conspiracy to commit money laundering, and money laundering. He faces a maximum penalty of 20 years in federal prison for the conspiracy to possess with intent to distribute and the distribution charges, up to 5 years in federal prison for the conspiracy to commit structuring charge, and a maximum of 10 years’ imprisonment for each of the evading currency-transaction reporting, conspiracy to commit money laundering, and money laundering offenses.
According to court documents, from August 2009 to November 15, 2012, St. Jude’s Pharmacy in Cape Coral was owned and operated by Otano and his wife, Martha. During that period, the pharmacy made a significant profit by filling fraudulent prescriptions for oxycodone and charging $4.00 to $12.00 per pill.
From April 2011 to November 15, 2012, the Otanos made structured cash deposits of the proceeds of the illegal narcotics sales into a domestic financial institution. They knew that the money obtained from the sale of oxycodone through the pharmacy was the proceeds of unlawful narcotics distribution. They used drug proceeds to purchase two residences in Cape Coral, a 2012 Chevrolet truck, and a 2013 Mercedes Benz vehicle.
Martha Otano previously pleaded guilty for her role in this case. She was sentenced on July 21, 2014, to three years and one month in federal prison.
This case was investigated by the United States Secret Service and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys David G. Lazarus and Yolande G. Viacava.
Pennsylvania man sentenced for possessing firearms while using drugsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Seth Grim, 21, of Emmaus, Pennsylvania, was sentenced to two years in federal prison.
In December 2014, Grim pleaded guilty to being an unlawful user of drugs in possession of firearms.
On Aug. 22, 2014, Grim was involved in a single vehicle accident on I-79 near Amma, Roane County, West Virginia.
The Roane County Sheriff’s Department responded to the accident, and once on scene a deputy observed fuses running from cardboard tubes inside a bag. The discovery led to the closure of I-79 in the vicinity of the accident while the explosives were safely removed from Grim’s vehicle.
Further search of the vehicle uncovered three semi-automatic rifles with high-capacity magazines, five explosive devices, a bullet proof vest, a gas mask and hundreds of rounds of ammunition. Around five ounces of marijuana were also found, which Grim admitted was for his personal use. As an illegal drug user, Grim was prohibited from possessing firearms.
At the time of the accident Grim was moving from Pennsylvania to Kentucky. His vehicle was doubling as his moving van, and in addition to the drugs, firearms, tactical gear and explosives, he was also transporting all his personal belongings, which included more than 30 chickens and his dog.
United States District Judge John T. Copenhaver, Jr. imposed the sentence.
The case was investigated by the Roane County Sheriff’s Department, West Virginia State Police and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Steven I. Loew handled the prosecution.
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Pennsylvania Man Pleads Guilty to Illicit Sexual Conduct Charges, Receiving Child PornographyRead the Press Release
COLUMBUS – Jason C. Kozlowski, 32, of Glen Rock, Pennsylvania, pleaded guilty in U.S. District Court to traveling interstate with the intent to engage in illicit sexual conduct and receiving child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Grove City Police Chief Steve Robinette, Pickaway County Sheriff Robert B. Radcliff, and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the plea entered into today before U.S. District Chief Judge Edmund A. Sargus, Jr.
According to court documents, on October 10, 2014, Grove City police officers observed Kozlowski in his vehicle behind a Target store nude from the waist down with a 15-year-old female.
Upon interviewing Kozlowski and the minor female, investigators discovered the two had been communicating since approximately March of 2014 by Facebook, e-mails, text messages and telephone calls. Text messages found on the phones of Kozlowski and the minor female revealed that Kozlowski had sent the girl sexually explicit messages. Kozlowski was aware of the female’s age and the laws in the state of Ohio regarding consent.
Kozlowski told law enforcement officials the 15-year-old was going to get a letter from her parents giving him permission to “be with” with the girl. The defendant admitted to driving from Pennsylvania to Ohio to pick up the female and explained they went to dinner, shopping, and then parked behind the Target store and engaged in sex acts.
Investigators discovered nude photographs of both the defendant and the victim had been exchanged vita text. They also discovered pornographic images of a different, 13-year-old female on Kozlowski’s computer.
Traveling in interstate commerce with the intent to engage in illicit sexual conduct is a crime punishable by up to 30 years in prison. Receiving child pornography is punishable by up to 20 years imprisonment.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office Upper Arlington Police Department Grove City Police Department Columbus Police Department Grandview Heights Police Department Whitehall Police Department Hilliard Police Department Westerville Police Department Homeland Security Investigations U.S. Secret Service Ohio ICAC Franklin County Prosecutor's OfficeThis case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the cooperative investigation by law enforcement, as well as Assistant United States Attorneys Heather Hill and Jessica Kim, who are representing the United States in this case.
Owner of Mortgage Company and Four Others Sentenced on Mortgage Origination Fraud ChargesRead the Press Release
PHOENIX – On Feb. 11, 2015, Kevin Grant Lee, 35, formerly of Mesa, was sentenced by U.S. Senior District Judge Roslyn O. Silver to 12 months in federal prison, followed by five years of supervised release, for his role in assisting his brother, Scott Thomas Lee, in committing mortgage loan origination fraud. Late last year, Judge Silver sentenced Scott Thomas Lee, 46, former owner of Summit Capital Mortgage, LLC, to 60 months in federal prison, followed by five years of supervised release. The brothers previously pleaded guilty to conspiring together and with others to commit mortgage fraud involving high-end residential loans and custom-home construction loans. Both were also ordered to pay millions in restitution to lenders.
Scott Lee owned and operated Summit Capital, located in Mesa where he employed Kevin Lee and several other family members. Leading up to the real estate crash of 2008, Summit Capital specialized in high-end residential mortgage loans and custom-home construction loans. Through Summit Capital, Scott Lee and Kevin Lee originated dozens of fraudulent loans by providing false information on loan applications, forging signatures, and creating false financial and construction-related documents. Summit Capital and Scott Lee received nearly $1.5 million in commissions based on these bogus loans and caused millions in losses to a variety of lenders.
Three co-conspirators who were involved in several of the fraudulent loans through their Gilbert company, The Reserve at Greenfield, LLC, also pleaded guilty and were sentenced by Judge Silver late last year. Chad Brian Kennedy, 43, of Gilbert, pleaded guilty to fraud charges based on his involvement in using a fictitious buyer on several loans, and he was sentenced to nine months in federal prison followed by three years of supervised release. Shalynn K. Loar, 43, of Gilbert, and Jackson Wesley Skousen, 42, previously of Gilbert, pleaded guilty to fraud charges based on similar activity, and each received a sentence of five years of probation with six months of home confinement. All three were also ordered to pay substantial restitution to lenders.
The investigation in this case was conducted by the FBI, Phoenix Division. The prosecution was handled by Monica Beerling Klapper, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-00824-PHX-ROS
RELEASE NUMBER: 2015-013_Lee et al
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Orlando Man Convicted of Carjacking and Firearm ChargesRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that a federal jury has found Nester Leon (26, Orlando) guilty of carjacking, and using and carrying a firearm that was discharged in relation to that carjacking. Leon faces a maximum penalty of 15 years in federal prison for the carjacking conviction, and a mandatory minimum of 10 years’, up to life imprisonment, for the firearm conviction. His sentencing hearing is scheduled for May 1, 2015.
According to evidence presented at trial, during the early morning of June 28, 2014, Leon’s friend “L.P.” drove to the McCoy Federal Credit Union located at 2075 Central Florida Parkway in Orlando. When L.P. exited his car to use the ATM, Leon slid over from the passenger’s seat, got behind the wheel, and started to leave the parking lot. When L.P. ran after his car, Leon pulled out his gun and fired a single shot at L.P. L.P. then ran to a nearby convenience store and called 911.
Because L.P.’s car was equipped with GPS, the Orange County Sheriff’s Office was able to track the vehicle to an apartment complex in Orlando. When deputies found the car, Leon was sitting behind the wheel. After seeing the marked patrol car pull up behind him, Leon jumped out of the car and fled. Deputies then chased Leon through the parking lot and into the street.
Leon then tried to discard evidence of his crimes, including a necklace he had stolen from L.P., into a nearby pond. When deputies caught up with Leon, he resisted, but was ultimately detained. During a subsequent search of the car, a freshly-fired, small-caliber shell casing was recovered from the front seat.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Joseph M. Schuster and Kara Wick.
Orlando Area Men Sentenced for String of Armed RobberiesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III, announces that United States District Judge Anne C. Conway today sentenced Keenan Davis (27, Poinciana), Kelsey Coffee (28, Kissimmee), Tiandre Rogers (25, Poinciana), Moses Patterson (23, Poinciana), and Danoris Scott (24, Poinciana) for their involvement in a string of armed robberies. Davis and Coffee were convicted following a jury trial in November 2014. Specifically, Davis was convicted of six counts of robbery and two counts of using a firearm in furtherance of a crime of violence. Today, he was sentenced to 33 years and 4 months in federal prison. Coffee was convicted of four counts of robbery and one count of using a firearm in furtherance of a crime of violence. He was sentenced to 19 years and 6 months in federal prison.
Patterson, Scott, and Rogers each previously pleaded guilty to two counts of robbery and two counts of using a firearm in furtherance of a crime of violence. Patterson was sentenced to 14 years and 3 months in federal prison, Scott received a sentence of 11 years and 3 months’ imprisonment, and Rogers was sentenced to 16 years and 5 months in federal prison. Another individual, Jamal Tillman (23, Poinciana), was previously sentenced on November 20, 2014, to 80 months in federal prison.
All of the individuals were originally indicted on June 26, 2014.
According to evidence presented at trial, the defendants were involved in robbing multiple retail establishments, including a McDonald’s restaurant and a Sweetbay Supermarket, in 2013. During the trial, many of the victims testified that they had been pepper-sprayed, zip-tied, and duct-taped while Davis, Coffee, and the other co-defendants conducted the robberies.
On September 7, 2013, after committing several other robberies, Davis and Coffee entered a Nike Factory Outlet Store at the Ellenton Outlets with a gun in Manatee County, while Patterson, Scott, Rogers, and Tillman acted as lookouts. Following this robbery, all six were arrested by deputies from the Manatee County Sheriff’s Office.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Orange County Sheriff’s Office, the Apopka Police Department, the Plant City Police Department, and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Ohio man charged with traveling to have sex with minorRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned an indictment alleging that Patrick W. Ganim, 29, of, Chagrin Falls, Ohio, traveled across state lines to engage in illicit sexual conduct with a minor female, United States Attorney William J. Ihlenfeld, II, announced.
Ganim is alleged to have used various online messaging services to communicate with a minor female residing in the Northern District of West Virginia. In October 2014, Ganim allegedly traveled across state lines from Ohio to West Virginia and engaged in illicit sexual conduct with the victim. Following their initial meeting, Ganim allegedly continued to utilize online messaging services to communicate with the minor victim, planning a subsequent meeting and sending explicit material to the victim.
Ganim is charged with:
• One count of “Travel to Engage in Illicit Sexual Conduct,” for which he faces up to 30 years in prison and a fine of up to $250,000.00.
• One count of “Using Means of Interstate Commerce to Attempt to Entice Minor to Engage in Sexual Activity,” for which he faces between 10 years and life in prison and a fine of up to $250,000.00.
• One count of “Transfer of Obscene Materials to a Minor,” for which he faces up to 10 years in prison and a fine of up to $250,000.00.Assistant U.S. Attorney Sarah Montoro is prosecuting the case on behalf of the government. The Preston County Sheriff’s Office, the Bainbridge Township, Ohio Police Department, and the Federal Bureau of Investigation are leading the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
North Adams Man Sentenced for Possession of Child PornographyRead the Press Release
BOSTON – A North Adams man was sentenced yesterday in U.S. District Court in Springfield for possession of material involving the sexual exploitation of a minor.
Wade Galli, 49, was sentenced by U.S. District Judge Mark G. Mastroianni to 50 months in prison and 10 years of supervised release. He pleaded guilty in September 2014.
On May 29, 2013, law enforcement officers executed a search warrant at Galli’s residence and seized computer media containing numerous image and video files which included images of violent and sadomasochistic sexual assaults of young girls. Galli admitted that he downloaded child pornography from the Internet. He also created some videos by filming nude girls at the beach. Galli said he did so “whenever I had time” and filmed girls as young as 13 at beaches in Pittsfield, Mass. and Vermont.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. The case was investigated with the assistance of the Massachusetts State Police and the North Adams Police Department. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
New Orleans Men Indicted in Conspiracy to Distribute MethamphetamineRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NELSON ROUSSELL, age 31, and ZACHARY DEMERS, age 21, both of New Orleans, were charged today in a four-count Indictment for violations of the Federal Controlled Substances Act. In Count One of the Indictment, ROUSSELL and DEMERS were charged with conspiring to distribute and possess with intent to distribute a quantity of methamphetamine. In Count Two, ROUSSELL was charged with distributing a quantity of methamphetamine. In Count Three, ROUSSELL was charged with possessing with intent to distribute a quantity of methamphetamine. In Count Four, DEMERS was charged with possessing with intent to distribute a quantity of methamphetamine.
Each of the counts carry a maximum term of imprisonment of twenty years, a fine of up to $1,000,000, and a minimum of three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the Indictment 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 Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
New Jersey Oyster Harvesters and Dealers Sentenced for Illegally Trafficking in Oysters, Falsifying Food Safety and Oyster Harvest Records, and Obstructing JusticeRead the Press Release
Three oyster harvesters and dealers, an employee and a related business were sentenced yesterday in federal court in Camden, New Jersey. Todd Reeves, Thomas Reeves, Renee Reeves, of Port Norris, New Jersey, and their oyster dealer company, Shellrock LLC, were sentenced for their roles in creating false oyster records, trafficking in illegally possessed oysters, obstructing the U.S. Food and Drug Administration’s (FDA) regulation of public health and safety, and conspiring to commit those crimes. Kenneth Bailey, of Heislerville, New Jersey, was sentenced for creating false oyster records and trafficking in illegal oysters.
Todd Reeves was sentenced to serve 26 months in prison and three years of supervised release, to pay a $7,000 fine, and was ordered to pay New Jersey $140,000 for the restoration of oyster beds in Delaware Bay. Thomas Reeves was sentenced to serve 16 months in prison and three years of supervised release and pay a $7,000 fine, while Renee Reeves was sentenced to serve five years of probation and pay a $2,500 fine. Thomas, Renee and Shellrock were found liable for the restitution amount along with Todd. Todd and Thomas Reeves were additionally ordered to forfeit $144,000 to substitute assets for the vessels that they used to overharvest the oysters. The Reeves’ business, Shellrock, also known as “Reeves Brothers,” was ordered to pay a fine of $70,000 and complete a term of five years of probation.
Kenneth Bailey was sentenced to serve six months incarceration, followed by six months of home confinement and three years of supervised release, as well as to pay a $10,000 fine. Bailey was also ordered to forfeit $75,000 in substitute assets for the vessels that he used to overharvest the oysters.
“The conspiracy to traffic in overharvested, unreported and illegally possessed oysters from the Delaware Bay violated laws that protect public health and ensure the sustainability of resources,” said Assistant Attorney General John C. Cruden of the Department of Justice’s Environment and Natural Resources Division. “The defendants’ actions were harmful to honest fisherman of the Delaware Bay and the long-term viability of a resource that is vital to the local economy and plays an important role in the history of Southern New Jersey. Today’s sentences let the public know that we will not allow protected resources to be exploited, and that those who obstruct law enforcement and deprive honest fisherman of the full measure of their labor will be held accountable.”
In 2012, the defendants were convicted of numerous felony crimes related to their overharvest and sale of over $750,000 worth of oysters from the Delaware Bay. The evidence at trial showed that, for over four years, brothers Todd and Thomas Reeves would overharvest oysters from the Delaware Bay and create false dealer reports and harvester records to hide that overharvest from conservation officers. The Reeves also created false state and FDA health records to ensure that regulators would not detect their overharvest. The Reeves then sold their illegal oysters through their company, Shellrock LLC, to Mark Bryan of Harbor House Seafood, a wholesale and retail seafood operator in Delaware. Bryan and Harbor House are scheduled to be sentenced in Camden on Feb. 27, 2015, for their role in conspiring to create false records to conceal the scheme from authorities.
Kenneth Bailey engaged in similar conduct in 2006 and 2007, overharvesting oysters from the public oyster beds in Delaware Bay. Bailey then created false dealer reports, harvest reports and bills of lading to hide that overharvest from authorities.
“This investigation is a great example of state and federal cooperative enforcement,” said Assistant Director Logan Gregory of the National Oceanic and Atmospheric Administration (NOAA) Fisheries’ Office of Law Enforcement. “The Office of Law Enforcement will continue to support our enforcement partners by providing complex investigation expertise to address wildlife trafficking, seafood fraud and illegal, unregulated and unreported (IUU) fishing. We enjoy a great working relationship with our partners in the state of New Jersey, which is paramount in helping ensure a level playing field and a resilient coastal economy along the Delaware Bay shore.”
The Lacey Act prohibits creating or submitting false records for fish or wildlife moving in interstate commerce and also prohibits trafficking in fish or wildlife known to be illegally taken or possessed. The FDA and state health agencies require that oyster purchasers and sellers maintain accurate records of the amounts and locations of oyster harvest for all oysters they buy and sell in order to protect the public health and minimize the impact of any oyster-borne outbreak of disease.
The case was investigated by the NOAA Office of Law Enforcement and the New Jersey Department of Environmental Protection’s Division of Fish and Wildlife. The case was prosecuted by Assistant Chief Wayne D. Hettenbach and Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section, with assistance from Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office for the District of New Jersey.
Navajo Man from Arizona Pleads Guilty to Federal Misdemeanor Assault Charge in New MexicoRead the Press Release
ALBUQUERQUE – Calvin Fuson, 44, an enrolled member of the Navajo Nation who resides in Winslow, Ariz., pleaded guilty this morning in federal court in Albuquerque, N.M., to a misdemeanor assault charge.
Fuson was arrested on April 17, 2014, on a criminal complaint alleging that on Dec. 25, 2013, Fuson assaulted a Navajo man by stabbing the victim with a knife. According to the complaint, officers of the Navajo Nation Division of Public Safety responded to a call reporting a stabbing that occurred in Naschitti, N.M., which is located on the Navajo Indian reservation. The victim was treated for a stab wound approximately five centimeters long. Fuson subsequently was indicted and charged with assault resulting in serious bodily injury and assault with a dangerous weapon.
During today’s proceedings, Fuson pled guilty to a misdemeanor information charging him with assault by striking, beating or wounding. In entering his guilty plea, Fuson admitted that on Dec. 25, 2013, while at his family’s residence in Naschitti, N.M., he stabbed the victim, a 50-year-old Navajo man, with a knife during a fight. Fuson required medical treatment for injuries he sustained during the fight.
At sentencing Fuson faces a statutory maximum penalty of a year in federal prison and a maximum of 12 months of supervised release. Fuson has been in federal custody since his arrest and remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Paul H. Spiers is prosecuting this case.
Morgantown woman convicted of stealing government moneyRead the Press Release
CLARKSBURG, WEST VIRGINIA Samantha Christopher, 35, of Morgantown, West Virginia, was convicted in federal court today of misappropriating government money, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the United States Postal Service Office of Inspector General revealed that throughout late 2013 and 2014, Christopher embezzled nearly $12,500.00 in money order funds while employed as a Postal Contract Station Clerk.
Christopher pled guilty today to a criminal Information charging her with one count of “Embezzlement, Theft & Conversion of Government Monies.” She 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 Shawn Morgan is prosecuting the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Mexican National Indicted for Smuggling Cash, Gun and AmmoRead the Press Release
LAREDO, Texas – A federal grand Jury in Laredo has returned an indictment against Jesus Roldan Rubio for attempting to smuggle more than $100,000, a pistol and ammunition, announced U.S. Attorney Kenneth Magidson.
Rubio was initially charged via criminal complaint Jan. 20, 2015. He was indicted Feb. 3 and is set for an arraignment this morning at 11:00 a.m. before U.S. Magistrate Judge J. Scott Hacker.
Homeland Security Investigations (HSI) arrested Rubio, 46, of Puebla, Mexico, Jan. 16, 2015. Court documents allege he was attempting to exit the U.S. via the Lincoln Juarez International Bridge driving a 2012 Chrysler. At that time, he had advised Customs and Border Protection (CBP) officers that he had no monetary instruments or cash exceeding $10,000, no weapons and no ammunition.However, he was referred to secondary inspection during which time an x-ray inspection resulted in the discovery of anomalies to the vehicle’s battery. A visual inspection confirmed the battery itself had been replaced with a counterfeit battery composed of a small motorcycle battery surrounded by a battery case containing packages containing $109,270, a semi-automatic pistol and 100 rounds of pistol ammunition.
If convicted, Rubio faces up to 10 years in federal prison and a possible $250,000 fine.
The charges are the result of an investigation by CBP, HSI and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Jose Homero Ramirez and Mary Ellen Smyth are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Memphis Resident Sentenced to 15 Years for Sex Trafficking of A MinorRead the Press Release
MEMPHIS, TENN. – Today, U.S. Senior District Judge Jon Phipps McCalla sentenced Laron Matlock, age 33, of Memphis, TN, to 15 years of imprisonment for sex trafficking of a minor, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee; Leslie R. Caldwell, Assistant Attorney General of the Justice Department's Criminal Division; and Todd McCall, Special Agent in Charge of the Federal Bureau of Investigation (FBI).
Matlock, with the assistance of a co-defendant, facilitated the travel for a sixteen year old minor to travel from Chicago, Illinois to Memphis in July 2012 for the purpose of prostitution. Matlock then transported the minor from Memphis to Nashville, Tennessee, where she engaged in prostitution as a result of her being promoted on www.backpage.com. Matlock facilitated the online advertisement by paying the cost associated with the posting. Matlock thereafter drove the minor back to Memphis and, before he was arrested, transported her to a customer's home in an attempt for her to engage further in prostitution.
Assistant U.S. Attorney Brian K. Coleman and Trial Attorney Mi Yung Park with the Department of Justice's Child Exploitation and Obscenity Section (CEOS) represented the United States in the case. This case is a result of investigative efforts of the Federal Bureau of Investigation Memphis Division, the Civil Rights Human Trafficking Taskforce and the Shelby County Sheriff’s Department.
Spanish Version
McAllen Man Sentenced to 10 Years for Using A GunRead the Press Release
McALLEN, Texas – Oscar Eduardo Juarez has been ordered to prison in relation for his use of a weapon in relation to a crime of violence, announced U.S. Attorney Kenneth Magidson. He pleaded guilty Nov. 24, 2014.
Today, U.S. District Judge Micaela Alvarez ordered the 19-year-old McAllen man to serve 120 months in federal prison to be immediately followed by five years of supervised release.
The investigation revealed that on May 15, 2014, Juarez used a 9mm handgun to forcibly take a vehicle from an individual at a local nightclub. Later that evening, officers with the McAllen Police Department located the weapon and apprehended Juarez.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the McAllen Police Department and the FBI. Assistant U.S. Attorney Juan Villescas and James Sturgis prosecuted the case.
Manhattan U.S. Attorney and FBI Assistant Director Announce Charges Against Doctor for Illegal Distribution of More Than One Thousand Oxycodone PillsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a Complaint against a doctor who participated in a drug distribution conspiracy involving the prescription painkiller oxycodone. As detailed further below, the doctor, NICHOLAS KALOUDIS, operated out of Long Island and engaged in an interstate distribution scheme involving more than one thousand oxycodone tablets obtained through medically unnecessary prescriptions over a two-year period.
KALOUDIS, an endocrinologist, was arrested yesterday morning in connection with the charge in the Complaint and was presented before U.S. Magistrate Judge Michael H. Dolinger yesterday afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendant violated the law and the oath of his profession when he wrote medically unnecessary prescriptions for pure profit. A physician contributing to the epidemic of pain medication abuse is a prescription for disaster.”
FBI Assistant Director Diego Rodriguez said: “The charges alleged in the complaint describe a growing epidemic that exploits the integrity of the healthcare system. Selling scripts for cash is not a victimless crime, and those who violate the oath of their profession in this way are directly contributing to the illegal distribution of drugs sold on the street. The Health Care Fraud Task Force was formed in part to protect the public from unscrupulous doctors who put profiteering ahead of professional responsibility. Those who employ these schemes will most certainly be brought to justice.”
The following allegations are based on the Complaint unsealed yesterday in Manhattan federal court:
Starting in approximately 2013 and continuing through February 2015, KALOUDIS operated out of medical clinics in Long Island, where KALOUDIS, a Board certified, state licensed doctor, wrote medically unnecessary prescriptions for more than one thousand oxycodone pills in exchange for cash payments. On multiple occasions over the course of this two-year period, KALOUDIS charged hundreds or thousands of dollars in cash for “patient visits” that involved little, if any, actual examination and resulted in the issuance of a prescription for a large quantity of oxycodone, typically 30-milligram tablets. Some of the oxycodone illegally prescribed by KALOUDIS was subsequently resold, including in Virginia, resulting in the unlawful interstate distribution of thousands of oxycodone tablets.
Oxycodone is a prescription-strength Schedule II narcotic used to treat severe and chronic pain conditions. Oxycodone can result in addiction similar to an addiction to codeine or morphine, and there is an illegal market for oxycodone, as a substitute for – or adjunct to – other illegal narcotics, such as heroin.
The defendant is charged with one count of conspiracy to distribute and possess with intent to distribute oxycodone, which carries a maximum sentence of 20 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara thanked the FBI’s Health Care Fraud Task Force for their work in this investigation, which he noted is ongoing. The New York FBI Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force comprises agents, officers, and investigators from the FBI, the NYPD, the New York State Insurance Fraud Bureau, the U.S. Department of Labor, the U.S. Office of Personnel Management Inspector General, the U.S. Food and Drug Administration, the New York State Attorney General’s Office, the New York State Office of Medicaid Inspector General, the New York State Health and Hospitals Inspector General, the New York City Human Resources Administration’s Bureau of Fraud Investigation, and the National Insurance Crime Bureau.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorney Alex Rossmiller is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Nicholas Kaloudis complaint
Louisiana Man Sentenced to 21 Years in Prison for Operating International Child Exploitation EnterpriseRead the Press Release
U.S. Attorney Kenneth A. Polite, Jr. announced that JONATHAN JOHNSON, age 28, of Abita Springs was sentenced today for Operating a Child Exploitation Enterprise, in violation of Title 18, United States Code, Section 2252A(g).
JOHNSON was sentenced to 21 years incarceration by U.S. District Judge Nannette Jolivette Brown. Upon release from prison, JOHNSON will be placed on a term of supervised release for 10 years and he will also be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act. JOHNSON has been in federal custody since his arrest in June 2013.
According to court documents, from 2012 through 2013, JOHNSON administered two child pornography websites identified as Website A and Website B out of his Abita Springs, home in order to distribute images and videos depicting the sexual victimization of children. JOHNSON’s illegal websites had over 27,000 members located throughout the world. As the administrator of these websites, JOHNSON regulated membership in the websites and created two categories of website users: members and uploaders. JOHNSON required members to register with a user name and password before they could download video files, comment on videos, or exchange private messages. Uploaders had the same privileges as members, but were also permitted to upload sexually explicit material directly to JOHNSON’s websites. JOHNSON’s websites also included tutorials that provided guidance to members and uploaders on ways to communicate with minor boys in order to coerce them into creating sexually explicit videos and JOHNSON’s websites also provided instructions so members and uploaders could avoid detection from law enforcement. JOHNSON frequently utilized and encouraged other members and uploaders to access popular social networking sites in order to search for and locate unsuspecting minor boys for the purpose of having them create sexually explicit videos. JOHNSON and other website members and uploaders created fake female Internet personas in order to initiate online communications with young boys.
During the course of the investigation of JOHNSON, special agents with the U.S. Department of Homeland Security, Homeland Security Investigations and the U.S. Postal Inspection Service determined JOHNSON’s websites contained approximately 2,000 videos depicting the sexual exploitation of young boys. Dubbed “Operation Roundtable,” the case against JOHNSON has resulted in ten additional individuals being charged by the U.S. Attorney’s Office in New Orleans. To date, all ten of those defendants have entered pleas of guilty to crimes involving the sexual exploitation of children.
Operation Roundtable has resulted in over twenty-five additional defendants being arrested and charged with various state and federal charges throughout the United States and Canada and approximately 250 child victims have been identified and/or rescued by law enforcement officials.
“Today’s sentencing represents a significant step in our continued efforts to dismantle a criminal enterprise that is responsible for the sexual victimization of our nation’s young people,” stated United States Attorney Polite. “Once again, I commend HSI and the Postal Service for being dedicated partners in Operation Roundtable. Together, we are committed to utilizing our collective resources to bring justice to both the victims and the perpetrators of these crimes.”
“As the ringleader of a pack of sadistic child predators, this defendant is responsible for the sexual exploitation of hundreds of young victims, whose documented abuse was subsequently distributed to thousands of perverted criminals,” said Special Agent in Charge Raymond R. Parmer, Jr., ICE Homeland Security Investigations New Orleans. “There is simply no room in our society for such monsters, and I applaud the HSI special agents who put him in handcuffs and the federal prosecutors who put him behind bars. In this case, justice has been served.”
“Postal Inspectors have fought the scourge of child pornography since the 1900s, and we will never hesitate to pursue those who use the mail to exploit children,” said Acting Inspector in Charge Daniel Brubaker. We investigate a wide variety of crimes in our mission to protect the integrity of the U.S. Mail, but sexual exploitation of children is particularly heinous. When these predators use a combination of mail and the Internet to exploit our children we will ensure no aspect of their crimes escape justice.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service in investigating this matter. Fraud Unit Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
Long-Time Wilmington Housing Authority Employee Indicted on Drug Distribution ChargesRead the Press Release
WILMINGTON, Del. – Edwin Hernandez, 46, of Wilmington, Del., and Hector Hernandez, 36, of New Castle, Del., were indicted by a federal grand jury today on charges relating to the distribution of a half-kilogram of cocaine in Wilmington, Del., announced Charles M. Oberly, III, United States Attorney for the District of Delaware.
Edwin Hernandez has worked at the Wilmington Housing Authority as Maintenance Superintendent for over twenty years. According to the criminal complaint filed in the case, on February 5, 2015, Edwin Hernandez was arrested in a Wilmington Housing Authority van in the CVS Pharmacy parking lot at 1005 Delaware Avenue in Wilmington, Delaware. At the time of his arrest, he was found to be in possession of more than 500 grams of cocaine, which is valued at over $50,000.
Also charged was Edwin Hernandez’s brother, Hector Hernandez, who was arrested at the same time, in possession of a loaded firearm, near the CVS Pharmacy parking lot.
The defendants face two charges that each carry a maximum penalty of 40 years imprisonment (with a mandatory minimum of five years), up to a lifetime of supervised release (with a mandatory minimum of 4 years), a fine of up to $5,000,000 and a $100 special assessment, if convicted. In addition, Hector Hernandez faces a third charge, for possession of a firearm in furtherance of a drug trafficking crime, which carries an additional mandatory minimum term of 5 years imprisonment.
The case is the product of an investigation conducted by the Drug Enforcement Administration (“DEA”) Drug Trafficking Task Force, which is part of the New Castle County HIDTA, a recently established collaborative effort among federal, state, and local law enforcement agencies. The DEA Drug Trafficking Task Force includes members from the following agencies: DEA, Delaware State Police, New Castle County Police Department, Newark Police Department, Department of Homeland Security – Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Delaware Probation and Parole, and the Delaware Attorney General’s Office. Assistant United States Attorney Shawn A. Weede and Special Assistant United States Attorney Elizabeth L. Van Pelt are prosecuting the case on behalf of the United States.
Indictments are only charges and are not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.Level 3 Sex Offender and Former Member of Aryan Nation Sentenced for Failing to Register with AuthoritiesRead the Press Release
BOSTON – A former Cape Cod man who was residing in Missouri under an alias was sentenced yesterday for failing to register with law enforcement authorities as a sex offender.
David W. Lacouture, 52, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 78 months in prison and seven years of supervised release. In November 2014, Lacouture pleaded guilty to a one-count Indictment charging him with failing to register as a sex offender.
In September 2010, Lacouture was convicted in Barnstable County of indecent assault and battery on a child. As a result of that conviction, Lacouture was required to register as a Level 3 sex offender. At some point, Lacouture relocated to Florida and then Missouri where he failed to notify law enforcement authorities in Massachusetts, Florida, and Missouri. Notifications to law enforcement authorities are required so that sex offenders can be properly monitored, and so communities can have information about sex offenders living, working, or going to school in their neighborhoods. In April 2013, he was arrested under an alias on new state charges and returned to Massachusetts.
Lacouture’s previous criminal convictions include indecent exposure to an 11-year-old girl and a federal conviction for conspiracy to possess a firearm by a felon involving a Chinese SKS assault rifle. Furthermore, by his own admission, Lacouture was previously a member of the Aryan Nation.
United States Attorney Carmen M. Ortiz and John Gibbons, United States Marshal for District of Massachusetts, made the announcement. The case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Law Enforcement Tackles Drug Sales Near Schools in San FranciscoRead the Press Release
SAN FRANCISCO – U.S. Attorney Melinda Haag, Drug Enforcement Agency, Acting Special Agent in Charge Bruce Balzano, and San Francisco Police Chief Greg Suhr announced that 19 people have been indicted by a federal grand jury on charges of drug trafficking near schools and playgrounds in San Francisco. The indictments and arrests resulted from a continued partnership between the U.S. Attorney’s Office, the DEA, and the San Francisco Police Department in a program called Operation Safe Schools.
This iteration of Operation Safe Schools focused on the Tenderloin neighborhood and portions of the South of Market neighborhood, two areas notorious for drug dealing in San Francisco. In announcing the charges, U.S. Attorney Melinda Haag stressed the significance of protecting school zones. “The goal of Operation Safe Schools is to use the law enforcement tools available to us to make neighborhoods like the Tenderloin safe, and to ensure that children who live and go to school in these neighborhoods are not exposed to crime and drug dealing,” said U.S. Attorney Haag. “We intend to continue with this initiative and others like it until the children in our community are no longer exposed to these dangerous situations.”
According to Acting Special Agent in Charge Bruce Balzano, the DEA will continue to partner with other law enforcement agencies to protect children and schools from drug trafficking. “These partnerships are important because they allow us to better protect our communities. The Safe Schools program delivers an important message to drug dealers who do business in the Northern District of California: We will not tolerate drug trafficking in school zones or anywhere else,” said Acting SAC Balzano.
"I wish to thank the US Attorney's Office and DEA for their continued partnership with the San Francisco Police Department and their commitment to Operation Safe Schools,” said San Francisco Police Chief Suhr. “Together, we are making a difference in the lives of all residents in the Tenderloin area by preventing drug dealers from preying on young children near the schools they attend on a daily basis. Every child deserves an education and should not ever have to navigate drug dealers to get to school."
Over the past nine days, the following defendants have been arrested and brought before U.S. Magistrate Judges to answer charges:
- Sholanda Adams Case No. CR-15-0070 VC
- Crystal Anthony Case No. CR-15-0005 SI
- William Brown Case No. CR-15-0069 TEH
- Latonya Carey Case No. CR-15-0004 MMC
- Jahnai Carter Case No. CR-14-0642 MMC
- Tiffany Cross Case No. CR-15-0059 CRB
- Holbert Lee Case No. CR-15-0056 EMC
- Aaron Mathews Case No. CR-15-0049 WHA
- Vernon Hill, AKA Kali Muhammed Case No. CR-15-0068 CRB
- Mathew Mumphrey Case No. CR-14-0643 RS
- Andre Patterson Case No. CR-14-0642 MMC
- Ashley Pharr Case No. CR-15-0007 CRB
- Darell Powell Case No. CR-15-0006 WHA
- Tiana Reddic Case No. CR-15-0052 WHA
- Nijah Reed Case No. CR-15-0050 RS
- Darlene Rouse Case No. CR-15-0027 VC
- Irisha Smith Case No. CR-14-0641 WHA
- Ebony Wallace Case No. CR-15-0061 CRB
- Lakeysha White Case No. CR-15-0029 EMC
According to the charging documents, the defendants are each charged with the distribution of prohibited drugs on or within 1,000 feet of a school or playground, in violation of 21 U.S.C. §§ 841(a)(1) and 860. The defendants are charged with distributing various controlled substances, including “crack” cocaine, heroin, methamphetamine, and oxycodone, as specified in the individual indictments.
The maximum statutory penalty for violating the drug-free school zone statute is 40 years in prison, with a mandatory minimum sentence of one year in jail, at least six years and up to life on supervised release, and a maximum fine of up to $2,000,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Sarah Hawkins and Lloyd Farnham are the Assistant U.S. Attorneys prosecuting these cases. The prosecutions are the result of multiple investigations by the San Francisco Police Department, the San Francisco Field Division of the U.S. Drug Enforcement Administration (DEA) and the United States Attorney’s Office for the Northern District of California.
Please note, an indictment contains only allegations and, as in all cases, the defendants listed above must be presumed innocent unless and until proven guilty.
Lavergne Tax Return Preparer Indicted for Tax FraudRead the Press Release
Michelle Theus, 40, of LaVergne, Tenn. was indicted yesterday by a federal grand jury in Nashville on charges related to preparing and filing false federal income tax returns, announced David Rivera, U. S. Attorney for the Middle District of Tennessee and Larry J. Wszalek, Acting Deputy Assistant Attorney General for the Justice Department's Tax Division. Theus was charged with 26 counts of aiding and assisting in the preparation of false tax returns for other individuals and two counts of filing false tax returns for herself.
According to the indictment, Theus aided in the preparation of at least 26 false tax returns for other individuals, from January 2009 through February 2012. The returns reported items such as false dependents and false education and childcare credits. The indictment further alleges that Theus made, signed, and filed false 2009 and 2010 tax returns that substantially underreported her income.
If convicted, Theus faces up to three years in prison and a $250,000 fine for each count.
The case was investigated by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Kathryn Ward Booth and United States Department of Justice Tax Division Trial Attorney Alexander R. Effendi are representing the United States.An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Kewa Pueblo Man Pleads Guilty to Federal Misdemeanor Assault ChargeRead the Press Release
ALBUQUERQUE –Ambrose Atencio, 51, a member and resident of Kewa Pueblo, N.M., pleaded guilty this morning to a misdemeanor information charging him with assaulting an Indian woman.
Atencio was arrested on Sept. 25, 2014, on a criminal complaint charging him with assaulting an intimate partner by strangulation. According to the complaint, on Sept. 12, 2014, BIA officers responded to a report of assault on Kewa Pueblo in Sandoval County, N.M. The complaint alleged that Atencio assaulted the victim, a Kewa woman, by striking her in the face and strangling the victim. Atencio was indicted on Oct. 21, 2014, and charged with assaulting an intimate partner by strangulation.
During today’s proceedings, Atencio entered a guilty plea to a misdemeanor information and admitted assaulting the victim by striking her with his hands on her face. Atencio also admitted grabbing the victim’s throat. As a result of the assault, the victim sustained bruises and contusions on her body, neck and facial area.
At sentencing, Atencio faces a penalty of up to 12 months in federal prison and up to five years of supervised release. Atencio has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services. Assistant U.S. Attorney Linda Mott is prosecuting this case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Kentucky Man Charged with Transporting 13-year-old Girl for SexRead the Press Release
Walter Lee Dunn, 31, of Richmond, Kentucky, was charged with transportation of a minor to engage in illegal sexual activity, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges on or about December 31, 2014, Dunn knowingly transported an individual who had not attained the age of 18 years, that is a 13 year-old girl, in interstate commerce from Ohio to Kentucky, with the intent that such 13 year-old girl engage in sexual activity for which Dunn could be charged with a criminal offense.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton Office of the Federal Bureau of Investigation and the Wayne County Sheriff’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Justice Department Settles Sexual Harassment and Retaliation Suit Against the State of Maryland, Queen Anne's County, and the Queen Anne's County SheriffRead the Press Release
The Justice Department announced today that it has entered into a consent decree with the state of Maryland and the Queen Anne’s County Sheriff. If approved by the court, the settlement will resolve Murphy-Taylor v. State of Maryland, et al., a sexual harassment and retaliation lawsuit in which the United States intervened in Feb. 2013. The United States previously entered into a consent decree with Queen Anne’s County in May 2014.
The United States’ complaint in intervention alleged that several supervisors in the Sheriff’s Office, including the Sheriff’s brother, subjected Kristy Murphy-Taylor to severe sexual harassment and that the Sheriff and members of his command staff retaliated against her when she complained in violation of Title VII of the Civil Rights Act of 1964. According to the United States’ complaint, over a number of years, Ms. Murphy-Taylor was subjected to numerous acts of unwanted sexual conduct by multiple supervisors including repeated incidents of unwanted sexual touching by the Sheriff’s brother. Despite Ms. Murphy-Taylor’s complaints about the harassment, the complaint alleges that the defendants failed to take prompt and effective corrective action. Instead, they allegedly subjected her to intolerable working conditions intended to make her quit, and ultimately terminated her for complaining about the sexual harassment by the Sheriff’s brother.
Under the terms of the consent decree with the state of Maryland and the Queen Anne’s County Sheriff, the defendants have agreed to revise the relevant sexual harassment policies and the procedures for handling complaints of sexual harassment and retaliation. In particular, the Maryland State Police will provide oversight for the handling of complaints of sexual harassment and retaliation made by employees of the Sheriff’s Office against sworn officers. Ms. Murphy- Taylor will also receive $250,000 in damages. Under the terms of the consent decree entered into with Queen Anne’s County in May 2014, Ms. Murphy-Taylor received $620,000 in damages including backpay, frontpay, and attorney’s fees, and Queen Anne’s County agreed to provide oversight and investigative functions for the handling of complaints of sexual harassment and retaliation made by employees of the Sheriff’s Office.
“No woman should have to face losing her job in order to be free from sexual harassment and retaliation at work,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Department of Justice is committed to eradicating sex discrimination in the workplace. The resolution of this lawsuit ensures that the Queen Anne’s County Sheriff’s Office will comply with federal law requiring employers to take prompt and effective corrective action to complaints of sexual harassment.”
"Workplace harassment should not be tolerated,” said EEOC Chair Jenny R. Yang. “Complaints of workplace harassment are among the most frequent complaints we receive at EEOC, accounting for 30% of the total charges we received last year. The Commission is working to prevent and address harassment through targeted outreach and enforcement.”
“This is another example of how collaboration between EEOC and the Department of Justice leads to effective enforcement of Title VII and ensures that public employees are protected from workplace discrimination and retaliation prohibited by Title VII,” said Director Spencer H. Lewis Jr. of the EEOC’s Philadelphia District Office. The Philadelphia District Office of the EEOC has offices in Philadelphia, Baltimore, Cleveland, and Pittsburgh, and oversees Pennsylvania, Maryland, Delaware, West Virginia and parts of New Jersey and Ohio.
This lawsuit was brought by the Department of Justice as a result of a joint effort to enhance collaboration between the EEOC and the Justice Department’s Civil Rights Division for vigorous enforcement of Title VII.
More information about Title VII and other federal employment laws is available on the website of the Employment Litigation Section of the Civil Rights Division (www.justice.gov/crt/about/emp/).
Jamaican Man First to be Extradited to Face Fraud Charges in International Lottery SchemeRead the Press Release
A 28-year-old man was extradited from Jamaica based on charges that he committed fraud as part of an international lottery scheme against elderly victims in the United States, the Justice Department announced today.
Damion Bryan Barrett is charged in a 38-count indictment in the Southern District of Florida with conspiracy and 37 counts of wire fraud, and with committing these offenses via telemarketing. According to the indictment, Barrett and his co-conspirators fraudulently induced elderly victims in the United States to send them thousands of dollars to pay purported fees for lottery winnings that victims had not in fact won. Barrett is the first Jamaican citizen to be extradited from Jamaica to the United States based on charges of defrauding Americans in connection with a lottery scheme.
Barrett arrived today in Opa-locka, Florida. He will make his initial appearance on Feb. 13 before Magistrate Judge Alicia O. Valle in Fort Lauderdale, Florida. Barrett was indicted by a federal grand jury in Fort Lauderdale on Aug. 9, 2012, and was arrested last month in Jamaica based on the United States’ request that he be extradited. Barrett’s extradition is the latest step in the United States’ ongoing crackdown on fraudulent lottery schemes based in Jamaica.
According to the indictment, beginning in October 2008, Barrett and his co-conspirators contacted victims in the United States announcing that the victims had won cash and prizes and persuaded the victims to send them thousands of dollars in fees to release the money. The victims never received cash or prizes. The defendant and his co-conspirators allegedly made calls from Jamaica using voice over internet protocol technology that allowed them to use a telephone number with a U.S. area code. According to the indictment, Barrett convinced victims to send money to middlemen in South Florida, who then forwarded the money to Jamaica.
“Persons who commit crimes against American seniors from outside of the United States will be held accountable,” said U.S. Attorney Wifredo Ferrer of the Southern District of Florida. “This case serves as an example that there are no borders when it comes to obtaining justice for the victims of these lottery schemes.”
“The Department of Justice will find and prosecute those responsible for fraud against American consumers, no matter where the perpetrator resides,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “Lottery schemes that target elderly victims for fraud cannot, and will not, be tolerated.”
“Today’s extradition signals strong partnership between the Jamaica Constabulary Force and our U.S. law enforcement partners,” said Commissioner of Police Dr. Carl Williams of the Jamaica Constabulary Force. “We use this opportunity to warn other lottery scammers who continue to prey on unsuspecting U.S. citizens, that they too will pay the penalty, whether through conviction in Jamaica or through extradition to the United States. We continue to address this with a high level of attention to contain the scourge.”
If convicted, Barrett faces a statutory maximum sentence of 30 years in prison per count, a possible fine and mandatory restitution. Barrett’s co-defendant, Oneike Barnett, 29, pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. On April 29, 2014, U.S. District Court Judge William J. Zloch sentenced Barnett to serve 60 months in prison and five years of supervised release, and to pay $94,456 in restitution for his role in this case.
“These criminal telemarking scams heartlessly target the elderly in the United States, at times stealing their life savings,” said Special Agent in Charge Alysa D. Erichs of Homeland Security Investigations (HSI) Miami. “The successful extradition of Damion Bryan Barrett sends a clear message that the cooperation between our countries is focused on bringing these offenders to justice despite borders that separate us. This extradition and hopefully others that may follow suit will have a positive impact on diminishing this crime.”
“Together with our international and domestic law enforcement partners we have proven that justice has no borders,” said U.S. Postal Inspector in Charge Ronald Verrochio of the U.S. Postal Inspection Service’s (USPIS) Miami Division. “We will continue to investigate and prosecute those who defraud American citizens, anywhere in the world.”
“The U.S. Marshals Service, together with our federal partners, will continue to track down and bring to justice those that would pray on our most vulnerable in our country,” said U.S. Marshal Amos Rojas of the Southern District of Florida.
U.S. Attorney Ferrer and Acting Assistant Attorney General Branda commended the investigative efforts of USPIS, U.S. Immigration and Customs Enforcement’s (ICE) HSI Miami and the U.S. Marshals Service. The case is being prosecuted by Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Bertha Mitrani of the Southern District of Florida.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Attachments:
Indictment - Damion Bryan Barrett (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.