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Thursday 12 February 2015
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.
“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.”
“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.”
“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.
Acting Assistant Attorney General Branda and U.S. Attorney Ferrer 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.
Jacksonville Man Sentenced to 10 Years in Federal Prison for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – Senior United States District Judge Harvey E. Schlesinger has sentenced Shaun Andrew Copenhaver (29, Jacksonville) to 10 years in federal prison for knowingly receiving child pornography over the Internet. He was also ordered to serve a 15-year term of supervision following his incarceration, to register as a sex offender, and to forfeit his computer media. Copenhaver has been in custody since his arrest on February 6, 2014.
According to court documents, an agent with the Florida Department of Law Enforcement in Jacksonville began an undercover investigation to identify individuals in the area that had access to and/or were trading images and videos of child pornography over the Internet. The agent determined that a local computer was hosting images of child pornography using a peer-to-peer file sharing program, and was able to download several pornographic videos from this computer. Further investigation traced the Internet subscriber information to Copenhaver’s Jacksonville residence
On February 6, 2014, law enforcement officers executed a federal search warrant at Copenhaver’s residence and seized a computer and an external hard disk drive. Copenhaver was at the residence. During an interview with agents, he admitted that he had been involved in downloading child pornography from the Internet for about five years. Subsequent analyses of Copenhaver’s external hard drive revealed that it contained videos depicting the sexual abuse of children.
This case was investigated by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ERIC SAMUEL MOTINO-ALVAREZ, age 27, a citizen of Honduras with a prior felony conviction, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the indictment, MOTINO-ALVAREZ reentered the United States on or about January 29, 2015, after having been previously removed on October 2, 2009.
If convicted, MOTINO-ALVAREZ faces an enhanced maximum term of imprisonment of twenty years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an 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 United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hobbs Man Sentenced to Ten Years in Federal Prison for Methamphetamine Drug Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Clinton Leroy Skippings, 58, of Hobbs, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison followed by five years of supervised release for his methamphetamine trafficking conviction. The sentence was announced by U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Field Division and Commander Byron Wester of the Lea County Drug Task Force (LCDTF).
Skippings was arrested on Dec. 18, 2013, on a criminal complaint charging him with possession methamphetamine and cocaine with intent to distribute in Lea County, N.M. According to the complaint, on Oct. 10, 2013, LCDTF officers executed search warrants on Skippings, his residence and his vehicle, and seized quantities of methamphetamine, cocaine and marijuana, more than $6,800.00 in cash, and packaging materials and other drug paraphernalia.
On Mar. 17, 2014, Skippings pled guilty to a felony information charging him with possession with intent to distribute methamphetamine. Skippings admitted that when he was stopped by LCDTF officers on Oct. 10, 2013, he was in possession of methamphetamine and crack cocaine which he intended to sell to another person who unbeknownst to him was cooperating with law enforcement. Skippings also admitted that on that same day, officers executed a search warrant at his residence and seized methamphetamine, cocaine and crack cocaine which he intended to distribute to others.
This case was investigated by the Lea County Drug Task Force, the Las Cruces office of the DEA and was prosecuted by Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Greenville, TX Man Sentenced to Life in Federal Prison for Transporting A Minor to Mexico for Sexual PurposesRead the Press Release
In Midland today, U.S. District Judge Robert A. Junell sentenced 35-year-old Joel Aguirre-Lara of Greenville, TX, to life in federal prison for transporting a minor to Mexico for sexual purposes announced Acting United States Attorney Richard L. Durbin, Jr. and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez in El Paso.
On October 15, 2014, a jury convicted Aguirre-Lara of one count of transportation of a minor to engage in sexual activity and one count of aggravated sexual abuse of a child under 12. Evidence presented at trial revealed that on January 10, 2014, Aguirre-Lara, formerly of Del Rio, TX, transported a minor female across the border to Ciudad Acuna, Mexico, where he then proceeded to engage in sexual activity with the minor. Testimony during trial also revealed that Aguirre-Lara had sexual relations with the minor female over a period of approximately three years beginning when she was eight years old.
On April 9, 2014, the Midland County Sheriff’s Office was contacted by the victim’s mother regarding the sexual assault of the victim in this case. The victim was taken to the Midland Rape Crisis and Children’s Advocacy Center for an evaluation and interview. A federal criminal complaint was filed on April 11, 2014, and an arrest warrant was issued for Aguirre-Lara. He was arrested on April 15, 2014, in Greenville, TX, and has remained in federal custody ever since.
This case was investigated by Homeland Security Investigations (HSI) together with the Texas Department of Public Safety, Midland County Sheriff’s Office and the Midland Rape Crisis and Children’s Advocacy Center. Assistant United States Attorney Austin Berry prosecuted this case on behalf of the Government.
Fugitive for Nearly Three Decades Arrested in Alabama Applying for Social Security NumberRead the Press Release
BIRMINGHAM -- A 28-year fugitive from Arizona soon will be returned to the Grand Canyon State following his arrest this month in Alabama, where he applied for a Social Security card under an assumed identity.
U.S. Attorney Joyce White Vance, Social Security Administration, Office of Inspector General, Special Agent in Charge Thomas J. Caul, U.S. Secret Service Special Agent in Charge Craig Caldwell and U.S. Marshal Chester M. Keely announced the arrest and extradition of STANLEY SHANE SELF, 74. Self has been a fugitive from Arizona since 1986 when a state court jury in La Paz County, Ariz., convicted him on three felony counts of child molestation in 1982.
"This man skirted justice for many years, but he did not escape it," Vance said. "Thanks to an alert Social Security employee in Albertville and swift investigation by Social Security OIG and Secret Service agents, Self will soon face the punishment for his crimes committed more than 30 years ago in Arizona."
"The Office of the Inspector General has no higher priority than to protect the integrity of the Social Security programs, in this case the issuance of a Social Security Number," Caul said. "The Social Security employees who identified the potential fraud, the U.S. Attorney's Office, the Secret Service and the Gulf Coast Regional Fugitive Task Force are to be commended for taking a serious felon off the street."
Self had been living for years under the stolen identity of Terry Harlan Martell, a Utah resident who died in 1987, according to court records. Self presented a Rhode Island birth certificate and an Oklahoma driver's license in Martell's name when he applied for a Social Security number in Albertville on Jan. 5, according to an affidavit supporting the criminal complaint charging him with making a false statement to a federal agency. Special agents with the Social Security Administration's OIG arrested Self on the complaint Feb. 3.
A federal magistrate judge in the Northern District of Alabama on Wednesday granted the government's motion to dismiss the false statement charges against Self so that he can be returned to Arizona. The government's motion said Self is being held on an Arizona warrant resulting from his 1986 convictions and that the La Paz County Sheriff's Office has arranged to transport Self to Arizona.
According to the affidavit filed in federal court in Alabama, a clerk in the Albertville SSA office searched agency databases for Terry Harlan Martell when Self applied for a Social Security number in that name. The data searches showed a Social Security number had been issued to Martell in 1963, and that Martell died in February 1987, according to the affidavit. Further investigation confirmed that the Rhode Island Department of Public Health issued a copy of Martell's birth certificate in March 1987, and that Oklahoma first issued a driver's license to Self, as Martell, in 1995.
Self was living in Hollywood, Ala., in Jackson County, when he was arrested. He previously had lived in the Birmingham area, with addresses listed in Vestavia Hills and Mulga.
SSA-OIG investigated the case, with assistance from the Secret Service and U.S. Marshals.
###Four Arrested for Conspiring to Commit Health Care Fraud and Money LaunderingRead the Press Release
HOUSTON – Aliksandr Beketav, 53, Mikhail Shiforenko, 43, Alexsandr Voronov, 46, and Daniela Gozes-Wagner, 32, have been arrested following the return of a federal indictment alleging a health care fraud conspiracy and conspiracy to commit money laundering, announced U.S. Attorney Kenneth Magidson.
The two-count Indictment was returned Dec. 17, 2014, and unsealed following their initial appearances before U.S. Magistrate Stephen W. Smith this afternoon. They were temporarily ordered into custody pending a hearing set for Tuesday, Feb. 17, 2015, at 2:00 p.m.
Shiforenko, Voronov and Gozes-Wagner are all residents of Houston, while Beketav is from Calabasas, Calif.
The indictment alleges that from approximately 2007 through the present, the defendants conspired to falsely bill Medicare and Medicaid for numerous unnecessary medical tests. According to the indictment, they paid Medicare and Medicaid beneficiaries to visit so-called “testing facilities” run by the defendants in the Houston area. The defendants caused employees of the testing facilities to visit purportedly homebound beneficiaries (to whom the defendants gained access by way of collusive arrangements with home-health care agencies) in order to conduct diagnostic tests on the beneficiaries at their homes, according to the allegations. The defendants then allegedly caused Medicare and Medicaid to be billed for diagnostic tests that were not performed or were not medically necessary.
In order to hide their fraud from authorities, the indictment alleges they would frequently change the names of the testing facilities and medical professionals listed in the bills submitted to Medicare and Medicaid. For example, if bills submitted to Medicare listing a particular doctor drew scrutiny from reviewing officials, defendants would allegedly cause that doctor’s name to be removed from future submissions, and for another doctor’s name to be substituted on the bill.
The defendants allegedly operated, among others, Dashwood Doctors Medical Clinic, Southwest Healthcare & Diagnostics, Harwin Healthcare & Diagnostic, Hilcroft Healthcare & Diagnostic, Gulfton Healthcare Inc., Westpark Healthcare & Diagnostics, Village Diagnostic Clinic Inc., and 7111 Medical Clinic Inc. in the Houston area, where these tests were purported to have been done. According to the indictment, the defendants submitted more than $28 million in fraudulent Medicare and Medicaid claims under the auspices of those eight facilities, of which Medicare and Medicaid paid more than $11 million.
The Indictment also alleges that from 2007 through the present, the defendants conspired to launder money which were proceeds of their health care fraud.
If convicted of conspiring to commit health care fraud, each faces up to 10 years in federal prison. For conspiring to launder money, they also face 20 years in federal prison, upon conviction. The Indictment also seeks forfeiture of at least $11,440,349 alleged to constitute the proceeds of the unlawful scheme.
The charges are the result of the investigative efforts of the FBI, Texas Attorney General’s Office - Medicaid Fraud Control Unit, and Department of Health and Human Services – Office of Inspector General with the assistance of the Office of Personnel Management and the Railroad Retirement Board. Assistant U.S. Attorneys Michael Chu and Jason Smith are prosecuting the case.
An Indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Tifton Bank President and CEO Indicted for Bank FraudRead the Press Release
A former bank president was charged today for his role in a bank fraud scheme in which he is alleged to have hidden underperforming and at-risk loans from the bank and the Federal Deposit Insurance Corporation (FDIC), among others, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Gary Patton Hall Jr., 49, of Tifton, Georgia, was indicted today by a grand jury in the Middle District of Georgia with six counts of bank fraud and one count of major fraud against the United States.
According to allegations in the indictment, Hall was the president and Chief Executive Officer of Tifton Banking Company (TBC) from August 2005 until June 2010. During that time, Hall was allegedly engaged in a long running scheme to mislead the bank and its loan committee about loans TBC made to local individuals and businesses. As part of the scheme, Hall allegedly hid past due loans from the FDIC and the TBC loan committee, which resulted in the bank continuing to approve and renew delinquent loans and loans for which the collateral was lacking. Several of the borrowers eventually defaulted on the loans, resulting in millions of dollars in losses to TBC and others.
Hall also allegedly hid his personal and business interests in at least two of the transactions over which he exercised approval authority. For example, in one instance, Hall allegedly approved several loans to the buyer of his condominium in Panama City Beach, Florida. In doing so, Hall allegedly made several false representations about the loans to TBC’s loan committee, and failed to disclose his personal interest in the transaction. When the buyer’s loan payments became delinquent, Hall allegedly hid the loans from both the FDIC and state regulators. Hall allegedly received $50,000 from the sale of his condominium in this transaction, which was allegedly funded in full by an unsecured loan to the buyer approved by Hall. The buyer eventually declared bankruptcy resulting in a loss of more than $400,000 to TBC.
TBC was closed by the Georgia Department of Banking and Finance in November 2010 due to its poor financial condition. At that time, TBC had not repaid the $3.8 million it received from the Department of Treasury’s Troubled Asset Relief Program.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI, the Department of Treasury’s Special Inspector General for the Troubled Asset Relief Program, the Small Business Administration’s Office of the Inspector General, the Federal Deposit Insurance Corporation’s Office of the Inspector General, the Department of Agriculture’s Office of Inspector General and the Tifton County Sheriff’s Office. The case is being prosecuted by Senior Trial Attorney N. Nathan Dimock of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Robert McCullers of the Middle District of Georgia.
Former Tifton Bank President and CEO Indicted for Bank FraudRead the Press Release
WASHINGTON – A former bank president was charged today for his role in a bank fraud scheme in which he is alleged to have hidden underperforming and at-risk loans from the bank and the Federal Deposit Insurance Corporation (FDIC), among others, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.Gary Patton Hall Jr., 49, of Tifton, Georgia, was indicted today by a grand jury in the Middle District of Georgia with six counts of bank fraud and one count of major fraud against the United States.
According to allegations in the indictment, Hall was the president and Chief Executive Officer of Tifton Banking Company (TBC) from August 2005 until June 2010. During that time, Hall was allegedly engaged in a long running scheme to mislead the bank and its loan committee about loans TBC made to local individuals and businesses. As part of the scheme, Hall allegedly hid past due loans from the FDIC and the TBC loan committee, which resulted in the bank continuing to approve and renew delinquent loans and loans for which the collateral was lacking. Several of the borrowers eventually defaulted on the loans, resulting in millions of dollars in losses to TBC and others.
Hall also allegedly hid his personal and business interests in at least two of the transactions over which he exercised approval authority. For example, in one instance, Hall allegedly approved several loans to the buyer of his condominium in Panama City Beach, Florida. In doing so, Hall allegedly made several false representations about the loans to TBC’s loan committee, and failed to disclose his personal interest in the transaction. When the buyer’s loan payments became delinquent, Hall allegedly hid the loans from both the FDIC and state regulators. Hall allegedly received $50,000 from the sale of his condominium in this transaction, which was allegedly funded in full by an unsecured loan to the buyer approved by Hall. The buyer eventually declared bankruptcy resulting in a loss of more than $400,000 to TBC.
TBC was closed by the Georgia Department of Banking and Finance in November 2010 due to its poor financial condition. At that time, TBC had not repaid the $3.8 million it received from the Department of Treasury’s Troubled Asset Relief Program.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI, the Department of Treasury’s Special Inspector General for the Troubled Asset Relief Program, the Small Business Administration’s Office of the Inspector General, the Federal Deposit Insurance Corporation’s Office of the Inspector General, the Department of Agriculture’s Office of Inspector General and the Tifton County Sheriff’s Office. The case is being prosecuted by Senior Trial Attorney N. Nathan Dimock of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Robert McCullers of the Middle District of Georgia.
Former Lowell Resident Sentenced for Illegal Firearm PossessionRead the Press Release
BOSTON – A former Lowell man and convicted felon was sentenced yesterday for illegally possessing multiple firearms, including a semi-automatic pistol.
Eric Texeira, 34, was sentenced by U.S. District Judge Denise J. Casper to 42 months in prison and three years of supervised release. In November 2014, Texeira pleaded guilty to a one-count Information charging him with being a felon in possession of firearms and ammunition.
On May 16, 2014, Texeira, a convicted felon, possessed a Glock semi-automatic pistol and sold multiple other firearms, including two revolvers and a rifle, to another individual for $1,300. Some of the firearms had obliterated serial numbers.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Lowell Police Superintendent William Taylor, made the announcement. The case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Former Houston CPA Convicted of Bankruptcy FraudRead the Press Release
HOUSTON - Stuart Bruce Zidell, 64, of Spring, has entered a plea of guilty to committing bankruptcy fraud, announced U.S. Attorney Kenneth Magidson.
Zidell filed a Chapter 7 bankruptcy petition on Nov. 22, 2011, seeking discharge from debt under the U.S. bankruptcy code. As part of that process, he completed the necessary schedules of his assets and liabilities and a Statement of Financial Affairs.
As part of his plea today, Zidell has admitted he sent an email to a creditor of his estate in which he offered the creditor a sum of money if they agreed not to contest is Chapter 7 bankruptcy case.
In order for the bankruptcy system to work for all parties it is imperative for the debtor to be truthful and forthright in all aspects of the bankruptcy process. The bankruptcy system is based on an honor system; the debtor agrees to provide all of the necessary information requested by the trustee and to assist the trustee in collecting all assets of debtors and comply with the court’s orders to obtain the relief desired under the chapter the case was filed.
U.S. District Judge Keith P. Ellison, who accepted the plea today, has set sentencing for Feb. 19, 2015, at which time Zidell faces up to five years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The charges are the result of an investigation conducted by the FBI with assistance from the United States Trustee’s Office. Assistant U.S. Attorney Quincy L. Ollison is prosecuting the case.
Former Hancock County Judge SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Marva Rice, former Probate Judge for Hancock County,was sentenced today by the Honorable Judge Marc T. Treadwell, United States District Judge, in Macon, Georgia for two counts of theft of federal funds from Hancock County. Ms. Rice was sentenced to serve 21 months in federal prison and pay restitution in the amount of $63,864.70 to Hancock County.Ms. Rice entered a guilty plea to the charges on October 23, 2014. Facts stipulated in the plea agreement showed that as Hancock County Probate Judge, Ms. Rice was responsible for collecting fines and fees and for depositing those funds into the Probate Court bank account. An investigation by the Federal Bureau of Investigation revealed that in 2012, Ms. Rice failed to deposit funds in the amount of $43,864.70. Then in 2013, after the FBI was conducting its investigation, Ms. Rice used Hancock County funds to pay for her own personal legal fees in the amount of $20,000.
“We count on the people who are sworn to uphold the law and administer justice to do just that. When Ms. Rice stole these funds, she not only took money she had no right to take, but she also violated the public trust. It is a sad day to see a judge go from wearing a black robe to wearing a federal prison uniform,” said United States Attorney Michael Moore.
The case was investigated by Special Agent Gregory McClendon of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Graham Thorpe.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.Former Etna Resident Gets 10-Year Prison Sentence for Distributing Child PornographyRead the Press Release
PITTSBURGH- A former resident of Etna, Pennsylvania, has been sentenced in federal court to 10 years imprisonment followed by 25 years supervised release on his conviction of distribution of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on David L. Roethlein, 26, formerly of Etna, Pennsylvania.
According to information presented to the court, Roethlein, on June 1, 2012, distributed over a peer-to-peer network to an agent of the Federal Bureau of Investigation in New Haven, Connecticut, working in an undercover capacity, videos and photographs in computer graphics files which depicted the sexual exploitation of prepubescent minor females.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Allegheny County District Attorney’s Office for the investigation leading to the successful prosecution of Roethlein.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florida Man Sentenced to Prison for Role in Multimillion Dollar Drug TheftRead the Press Release
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The United States Attorney for the District of Connecticut announced that ALEXANDER MARQUEZ, 41, of Hialeah, Fla., was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 12 months of imprisonment, followed by three years of supervised release, for his role in the theft of pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Conn.
According to court documents and statements made in court, in early 2010, Amaury Villa, Amed Villa, Yosmany Nunez and MARQUEZ planned to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield. The investigation revealed that, prior to the theft, Amaury Villa and Nunez traveled from the Miami area to Connecticut to gather information about the warehouse facility and the surrounding area. Shortly before the theft, Amed Villa and Rafael Lopez traveled to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.
In the evening of March 13, 2010, individuals involved in the theft dropped off a ladder in the rear parking lot of the warehouse facility and left. That same night, MARQUEZ drove a tractor trailer to the facility. Thereafter, Amed Villa and Amaury Villa carried the ladder to the building, checked for security in the front area, climbed onto the roof, used the tools Amed Villa and Lopez had purchased to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. Amaury Villa, Amed Villa and Nunez then loaded more than 40 pallets of pharmaceuticals into the tractor trailer, which had been backed up to the loading dock of the warehouse.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued between $50 and $100 million.
The individuals who participated in the theft split up in Connecticut. MARQUEZ then drove the tractor trailer to Florida, where he subsequently reunited with Amaury Villa, Amed Villa and Nunez so the pharmaceuticals could be transferred from the tractor trailer into self-storage units in the Miami area.
On October 14, 2011, law enforcement authorities searched a storage facility in Florida and recovered pharmaceuticals that had been stolen from the Enfield warehouse.
Judge Arterton ordered MARQUEZ to pay restitution in the approximate amount of $60 million. The exact amount of restitution to be ordered will be determined after further submissions by the parties.
MARQUEZ, a citizen of Cuba, was arrested on April 17, 2014. On November 5, 2014, he pleaded guilty to one count of transportation of stolen property.
Amaury Villa, Amed Villa, Nunez and Lopez also have pleaded guilty. On February 4, 2015, Nunez was sentenced to 75 months of imprisonment. Amaury Villa, Amed Villa and Lopez await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Enfield Police Department, with the assistance of several other U.S. Attorney’s Offices and federal, state and local law enforcement agencies that have been investigating large-scale thefts of pharmaceuticals and other products.
The case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito.
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[email protected]Elyria Man Indicted for Child Pornography CrimesRead the Press Release
Douglas Kushen, 44, of Elyria, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about June 29, 2003, through on or about August 14, 2011, Kushen knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on or about August 12, 2014, Kushen possessed computer disks that contained child pornography.
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 Elyria Office of the Federal Bureau of Investigation and the Elyria Police Department.
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.
District Man Pleads Guilty to Manslaughter in Death of His Infant SonBaby Had Fractures of Skull and RibsRead the Press Release
WASHINGTON – Tyrik Lamont Brown, 20, of Washington, D.C., pled guilty today to a charge of voluntary manslaughter stemming from the death last fall of his one-month-old son, U.S. Attorney Ronald C. Machen Jr. announced.
Brown pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a sentence within the District of Columbia’s voluntary sentencing guidelines; in this case, the range is from four to 10 years in prison. The Honorable Rhonda Reid Winston scheduled sentencing for April 24, 2015.
According to the government’s evidence, on Oct. 29, 2014, Brown was caring for his one-month-old son, Raj’saun Tyrik Brown, at the family’s residence in Southeast Washington. The child’s mother woke the baby at 8 a.m., fed him, and then left him in the care of Brown when she went to work at about 8:30 a.m. At the time she left, she placed the child on top of a pillow in the bed with the defendant.
At 8:57 a.m., Brown sent a text message to the mother stating that he had just cut the baby’s leg with his fingernails while rushing to change him and that the baby was bleeding. At 9:32 a.m., he called her to report that the boy had a white “foamy milk-like” substance coming from his nose. Then at 9:41 a.m., he called to say that the child was unresponsive. The mother instructed Brown to call 911 and she herself called 911. Law enforcement met the mother, and provided her transportation to the hospital, where Raj’saun was pronounced dead.
The Office of the Chief Medical Examiner determined that the cause of death was multiple blunt force injuries, including a skull fracture and rib fractures.
In announcing the plea, U.S. Attorney Machen commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the District of Columbia Office of the Medical Examiner and the District of Columbia Department of Forensic Sciences for assistance in the investigation. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kelly Blakeney and Mia Beamon, Victim/Witness Advocate Marcia Rinker, Intern Nicholas Molayem, and Assistant U.S. Attorney Cynthia G. Wright, who is prosecuting the case.
15-018Cooperating Witness in North Providence Town Council Corruption Probe Recognized for “Acts of Political Courage”Read the Press Release
PROVIDENCE, R.I. – Former North Providence town councilman and former Rhode Island Deputy Secretary of State Paul Caranci has been awarded the prestigious 2014 Margaret Chase Smith American Democracy Award, presented by the National Association of Secretaries of State (NASS) for “acts of political courage.”
Mr. Caranci was honored in Washington on Wednesday for his role in assisting the FBI and the United States Attorney’s Office during an investigation into political corruption within the North Providence town council in 2010. Mr. Caranci, who first alerted law enforcement to a kickback scheme to ensure enough votes for the approval of a zoning variance which was before the council, was instrumental in the investigation and the successful prosecution of three town councilmen and an attorney who masterminded and participated in the bribery scheme.
It is the first time in the 22-year history of the award that a Secretary of State Office representative has received the honor. Former recipients include former U.S. Supreme Court Justice Sandra Day O’Connor, Civil Rights heroine Rosa Parks, former U.S. Secretary of State Condoleezza Rice and former President Jimmy Carter.According to a NASS press release announcing the award in July 2014, “Mr. Caranci was nominated for the award by Indiana Secretary of State Connie Lawson for his courage in working with the FBI and other law enforcement entities to expose public corruption and bribery schemes that were masterminded by three of his fellow town councilmen in North Providence, R.I., placing his own political career and personal and family safety at great risk.”
“Being selected to receive the Margaret Chase Smith Award by the nation's Secretaries of State and all of the officials who comprise the organization is an extraordinary honor,” remarked Paul Caranci. “More than that, it is an amazing opportunity for me to reunite with so many wonderful friends. I am grateful for their considerations and their many friendships.”
“The fight against public corruption, so critical in Rhode Island, cannot be waged effectively unless residents who are aware of it come forward and report it,” said United States Attorney Peter F. Neronha. “In the North Providence case, Mr. Caranci, unlike some others, saw corruption and decided to do something about it. He had no obligation to do so. He wasn’t directly impacted by it. He could have done nothing. And yet, to the consternation of some, he decided to do the right thing.”
Mr. Neronha added, “When every Rhode Islander reacts to corruption like Mr. Caranci did, we will eliminate this blight on our state. Mr. Caranci has my enormous gratitude, and he deserves the gratitude of all Rhode Islanders.”
Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI noted, “Mr. Caranci’s cooperation was critical to uncovering the depth of this conspiracy. Concerned citizens like him are the FBI’s biggest asset in rooting out public corruption and exposing those who have abused the public’s trust. We thank him for his selfless donation of time in support of this case.”
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Contact: 401-709-5357
[email protected]Columbia Man Sentenced for Conspiracy to Distribute OxycodoneRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that John Lanier Britt, age 52, of Columbia, South Carolina was sentenced Tuesday to one hundred months imprisonment to be followed by six years Supervised Release for conspiracy to distribute oxycodone, a violation of 21 U.S.C. § 846, by Chief United States District Judge Terry L. Wooten.
Evidence presented at the change of plea hearing established that Britt was involved in the illegal distribution of oxycodone, a powerful prescription pain medication, for more than three years. Audio and video recordings of Britt selling oxycodone were made during the investigation. A search of Britt's house was conducted when Britt was arrested resulting in drugs being seized and evidence being found that Britt had sold almost 300 pills in the three days before he was arrested.
The case was investigated by agents of the Drug Enforcement Administration, Diversion and the Richland County Sherriff’s office. Assistant United States Attorney William E. Day, II of the Columbia office prosecuted the case. #####Chico Man Indicted for Sexual Exploitation of MinorsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Mark McLeod Wygant, 44, resident of Chico, charging him with Sexual Exploitation and Attempted Sexual Exploitation of Minors, United States Attorney Benjamin B. Wagner announced.
According to court documents, from early 2011 to early 2012, Wygant surreptitiously filmed a child on numerous occasions using a hidden cellular telephone and hidden “spy cameras” that he had purchased for that purpose.
This case was the product of an investigation by the Federal Bureau of Investigation and the South Lake Tahoe Police Department. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Wygant has been in custody since his arrest on January 29, 2015, by agents of the Federal Bureau of Investigation. He is scheduled to be arraigned on February 13, 2015, before Judge Carolyn K. Delaney.
If convicted, Wygant faces a maximum statutory penalty of 30 years in prison and a $250,000 fine per count. Any count of conviction would carry a mandatory minimum sentence of 15 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Carbon County Man Sentenced to 15 Years in Prison for Producing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 47-year-old Kidder Township man was sentenced to 15 years in federal prison today by Senior U.S. District Court Judge Edwin M. Kosik in Scranton, for producing child pornography.
According to United States Attorney Peter Smith, the defendant, Todd Kowar, previously pleaded guilty to persuading and inducing a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. Kowar committed the crime between 2008 and December 2012.
The case against Kowar resulted from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Kidder Township Police. Kowar was indicted by a federal grand jury in July 2014.
Judge Kosik ordered that Kowar’s federal sentence run consecutive to a sentence he is currently serving in Carbon County for other charges. Kowar must also serve 10 years on supervised release following his prison sentence, and pay a $100 special assessment. Kowar must also undergo sex offender treatment and comply with sex offender restrictions and registration requirements when he is released from prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Campaign Manager Pleads Guilty to Coordinated Campaign Contributions and False StatementsRead the Press Release
First Criminal Prosecution in the United States For
Campaign Finance Coordination between Political Committees
A campaign finance manager and political consultant pleaded guilty today in the Eastern District of Virginia for coordinating $325,000 in federal election campaign contributions by a political action committee (PAC) to a Congressional campaign committee. This is the first criminal prosecution in the United States based upon the coordination of campaign contributions between political committees.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement.
“The Department of Justice is fully committed to addressing the threat posed to the integrity of federal primary and general elections by coordinated campaign contributions, and will aggressively pursue coordination offenses at every appropriate opportunity,” said Assistant Attorney General Caldwell.
“Campaign finance laws exist to guard against illegal activity such as coordinated campaign contributions,” U.S. Attorney Boente said. “The citizens of the Commonwealth of Virginia can rely this office enforce federal campaign finance law.”
“Today, Mr. Harber took responsibility for violating federal election campaign laws by illegally coordinating payments between a super pac and a candidate’s campaign committee,” said Assistant Director in Charge McCabe. “The FBI will continue to investigate allegations of campaign finance abuse which are in place to ensure openness and fairness in our elections so the people’s interests are protected.”
Tyler Eugene Harber, 34, of Alexandria, Virginia, pleaded guilty to one count of coordinated federal election contributions and one count of making false statements to the FBI before U.S. District Judge Liam O’Grady of the Eastern District of Virginia. A sentencing hearing is scheduled for June 5, 2015.
According to the plea documents, Harber was the Campaign Manager and General Political Consultant for a candidate for Congress in the November 2012 general election. At the same time, Harber participated in the creation and operation of a PAC, which was legally allowed to raise and spend money in unlimited amounts from otherwise prohibited sources to influence federal elections so long as it did not coordinate expenditures with a federal campaign.
Harber admitted, among other things, that he made and directed coordinated expenditures by the PAC to influence the election with $325,000 of political advertising opposing a rival candidate. The coordination of expenditures made them illegal campaign contributions to the authorized committee of Harber’s candidate, and Harber admitted that he knew this coordination of expenditures was an unlawful means of contributing money to a campaign committee. He further admitted that he used an alias and other means to conceal his action from inquiries by an official of the same political party as Harber’s candidate.
Harber further admitted that he told multiple lies when interviewed by the FBI concerning his activities.
This case was investigated by the FBI’s Washington Field Office, Northern Virginia Resident Agency. The case is being prosecuted by Richard C. Pilger, Director of the Election Crimes Branch of the Criminal Division’s Public Integrity Section, and Chief Mark D. Lytle of the Financial Crimes and Public Corruption Unit of the Eastern District of Virginia.
California Man Sentenced to Ten Years for Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Paul Anthony Diaz, 48, of Desert Hot Springs, Calif., was sentenced this morning in federal court in Albuquerque, N.M., to 120 months in prison followed by five years of supervised release for his heroin trafficking conviction.
Diaz was arrested on Feb. 11, 2014, at the Amtrak train station in Albuquerque after a consensual search of Diaz by DEA agents revealed that Diaz had concealed bundles containing more than one kilogram of heroin underneath his clothing. Diaz subsequently was indicted on Feb. 26, 2014, and charged with possession of heroin with intent to distribute.
Diaz entered a guilty plea to the indictment on Aug. 18, 2014. The guilty plea was entered without the benefit of a plea agreement.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office, which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Paul Mysliwiec prosecuted the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
California Man Sentenced to 180 Months in Prison and 25 Years Supervised Release for Traveling to South Carolina to have Sex with 15 Year-OldRead the Press Release
Contact: Jim May (803) 929-3000
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Columbia, South Carolina ---- United States Attorney Bill Nettles stated that on Tuesday Charles Henry Ross, age 29, of San Diego, California was sentenced to 180 months and 25 years of supervised release for a violation of 18 U.S.C. § 2423(b), traveling in interstate commerce with the intent to have illicit sexual contact with a minor. United States District Judge Terry L. Wooten of Columbia imposed the sentenced.
Evidence presented at the change of plea hearing established that the defendant, Charles Henry Ross, traveled from California to South Carolina for the purpose of having a sexual relationship with a 15 year old in Lexington County. Ross had been communicating with the 15 year old for several months before he purchased a ticket and flew to South Carolina. The 15 year-old boy’s parents found Ross at their home, then notified Lexington County Sheriff’s Department. In imposing the sentence Judge Wooten agreed with the Government and the defense that the crime was very serious and warranted an upward departure of 3 levels of the sentencing guideline, arriving at the agreed upon 180 month sentence.
Mr. Nettles stated the case showed the cooperation between the United States Attorney’s Office, Lexington County Sheriff’s Department, the FBI and the South Carolina Attorney General’s Office in the identification and prosecution of sexual predators.
The United States Attorney’s Office prosecuted the case in conjunction with the South Carolina Attorney General’s Office. The case was investigated by agents of the FBI and the Lexington County Sheriff's Department. Assistant United States Attorney James (Jim) Hunter May of the Columbia prosecuted the case.
Bonita Springs Man Indicted on Federal Child Pornography ChargesRead the Press Release
Ft. Myers, Florida - United States Attorney A. Lee Bentley, III announces the return of an indictment charging Christopher Hall (44, Bonita Springs) with one count of distributing child pornography and one count of possessing child pornography.
According to the indictment, on May 9, 2014, Hall distributed images and videos depicting child pornography to an undercover FBI Task Force Agent using an Internet peer-to-peer network. A federal search warrant was subsequently executed at Hall’s residence and all of his computer-related media was seized. Forensic analyses of the evidence revealed approximately 2,500 images and videos of child pornography.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation - Ft. Myers Office and the Collier County Sherriff’s Office FBI Task Force. It is being prosecuted by Assistant United States Attorney Tama Koss Caldarone.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Belle Fourche Man Sentenced for Commercial Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Belle Fourche, South Dakota, man convicted of Commercial Sex Trafficking was sentenced on February 3, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jerry Lane Golliher, age 32, who was convicted following a federal jury trial in Rapid City in September 2014, was sentenced to 15 years in custody, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Golliher was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2013 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet. All nine men were indicted for Commercial Sex Trafficking.
The conviction stemmed from Golliher responding to a Craigslist.com advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several emails with a person Golliher believed to be associated with a 13-year old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, as well as the price he would pay, which was $150. Golliher then showed up at the negotiated time and place with sufficient currency and confirmed he was there to have sex with the minor in exchange for money.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorneys Sarah Collins and Ben Patterson prosecuted the case.
Golliher was immediately turned over to the custody of the U.S. Marshal's Service.Baltimore Man Convicted of Attempted Home Invasion Robbery in Cherry Hill and Related Gun CountsRead the Press Release
Baltimore, Maryland – A federal jury convicted Kenneth Ray Graham, age 38, of Baltimore, today for attempting to commit an armed robbery, possessing and discharging a weapon in furtherance of a crime of violence, and possession of a firearm by a convicted felon.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“ATF is committed to working with our state and local law enforcement partners to bring violent criminals to justice,” said ATF Special Agent in Charge William P. McMullan. “Today’s guilty verdict demonstrates our unwavering dedication to the investigation and prosecution of those individuals who choose to commit violent robberies of the citizens of Maryland.”
According to evidence presented at Graham’s three day trial, on September 17, 2013, Graham attempted to force his way into a home in the Cherry Hill neighborhood of Baltimore and demanded money. Witnesses testified that Graham fired three shots into the living room during the attempted robbery. One of those bullets struck a nine year old boy. Graham was previously convicted of a felony and as a result was prohibited from possessing a firearm.
Trial evidence included a shoe containing Graham’s DNA left at the robbery location and a matching shoe also containing his DNA along the escape route. At the time of his arrest, Graham also had gunshot residue on his hand.
Graham faces a maximum sentence of 20 years in prison for the attempted robbery; a mandatory minimum of 10 years, and up to life in prison for possessing and discharging a weapon in furtherance of a crime of violence; and 10 years in prison for being a felon in possession of a firearm. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for May 13, 2015, at 1:00 p.m. Graham remains in federal custody.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Kenneth S. Clark, who prosecuted the case.
Bail Bondsman Sentenced to Prison for Social Security Disability Benefit FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that Chief U.S. District Judge Brian A. Jackson sentenced MACK CHARLES WELLS, JR., age 49, of Zachary, Louisiana, to a year of incarceration, with six months to be served in prison and six months to be served in a half-way house facility. The defendant must also serve a two year term of supervised release following his incarceration and pay $136, 215 in restitution to the Social Security Administration (SSA).
Today’s sentence results from the defendant’s conviction for stealing $136,215 in disability benefits from SSA from February 2007 through December 2011. During that period, while collecting such benefits, the defendant was working as a bail bondsman with “All Day Bail Bonding, LLC” in Zachary, Louisiana. To continue receiving disability benefits, the defendant fraudulently concealed from SSA that he was working and earning an income as a bail bondsman.
U.S. Attorney Green stated: “Theft from government programs designed to help those less fortunate will continue to be a priority of the U.S. Attorney’s Office. Today’s sentence addresses the seriousness of the defendant’s conduct and should act as a deterrent to others who might consider stealing from our nation’s safety net programs.”
This investigation was handled by the U.S. Attorney’s Office and the Office of Investigations, Office of the Inspector General, U.S. Social Security Administration. This matter is being prosecuted by Assistant United States Attorney Lyman E. Thornton III.
Attorney Sentenced to 30 Months in Prison for Laundering Drug MoneyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RALPH CROZIER, 63, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 30 months of imprisonment, followed by three years of supervised release, for laundering drug money. He also was ordered to pay a $25,000 fine.
On September 25, 2014, a jury found CROZIER guilty of one count of conspiracy to launder monetary instruments and one count of attempt to launder monetary instruments. According to the evidence at trial, law enforcement began investigating CROZIER, an attorney based in Seymour, after receiving information from a convicted narcotics trafficker who was in federal custody. The narcotics trafficker stated that he was a former client of CROZIER and that CROZIER had convinced him to invest $30,000 in cash into CROZIER’s law partner’s solar energy company. CROZIER knew that the cash was derived from his client’s narcotics trafficking activities.
In 2013, the narcotics trafficker’s mother agreed to wear a recording device while meeting with CROZIER to discuss her son’s prior investment. On April 11, 2013, the woman brought $11,000 in DEA funds to a meeting with CROZIER, representing that her son had hidden the cash and wanted her to bring it to CROZIER. The conversation during the meeting made it clear that the money had been illegally derived from drug dealing. CROZIER accepted the cash and told the woman that he was going to make out the receipt in her son’s name, stating “I don’t want to put your name on anything because I don’t want you involved with hiding things from the Feds.” CROZIER was arrested shortly after the woman left his office.
“Attorney Crozier readily agreed to launder drug money for a narcotics dealer,” stated U.S. Attorney. “Money laundering is always a serious offense, but it is all the more serious when committed by an officer of the court. As attorneys are appropriately held to a higher standard, Crozier’s crimes are particularly troubling. This sentence reflects the seriousness of his offense and proper punishment for a lawyer who used his law license for criminal purposes.”
CROZIER, who is released on a $200,000 bond, was ordered to report to prison on April 17, 2015.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert Spector, and Assistant U.S. Attorney Charles Rombeau of the District of New Hampshire.
PUBLIC AFFAIRS CONTACT:
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[email protected]Artesia Man Sentenced to Prison for Trafficking Methamphetamine in Lea and Eddy CountiesRead the Press Release
ALBUQUERQUE – Mario Flores, 28, of Artesia, N.M., was sentenced today in federal court in Las Cruces, N.M., to 63 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Flores was one of five defendants indicted in June 2014, as result of a multi-agency investigation primarily targeting drug traffickers in Lea and Eddy Counties, N.M. The seven-count indictment charged Flores, Leroy Castillo, 33, Joe Padilla, 33, and Rolando Cantu, 39, all residents of Hobbs, N.M., and Anthony Pisana, 29, of Roswell, N.M., with methamphetamine trafficking and conspiracy charges.
Count 1 of the indictment charged all five defendants with conspiracy to distribute methamphetamine from Feb. 2014 through May 2014. Counts 2 charged Castillo, Flores and Pisana with possession of methamphetamine and Count 3 charged Cantu with the same crime. Counts 4 through 7 charged the defendants with using communication devices, phones, to facilitate drug trafficking crimes.
Flores was arrested on Aug. 30, 2014, in Carlsbad, N.M. On Oct. 17, 2014, Flores pled guilty to Counts 1 and 2 of the indictment. In entering his guilty plea, Flores admitted that on Mar. 4, 2014, officers found 83 grams of pure methamphetamine hidden in his vehicle during a routine traffic stop in Eddy County. Flores admitted that he was delivering the methamphetamine to another individual when he was stopped.
Pisana was arrested on June 23, 2014, and pled guilty on Sept. 16, 2014, to Count 1 of the indictment. Pisana admitted facilitating a methamphetamine purchase on behalf of a codefendant in Feb. 2014. He further admitted that in June 2014, agents executing a federal search warrant found 967 grams of methamphetamine in his Roswell residence. At sentencing Pisana faces a statutory minimum of five years and a maximum of 40 years in federal prison and at least four years of supervised release. His sentencing hearing has not been scheduled.
Cantu, who was arrested on July 7, 2014, has entered a not guilty plea to the indictment. He remains in federal custody pending trial which [is currently scheduled for June 2015]. Castillo and Padilla have yet to be arrested and are considered fugitives. Individuals with information regarding the whereabouts of Castillo or Padilla are asked to call the FBI at 505-622-6001. The charges in the indictment against Cantu, Castillo and Padilla are merely accusations and these defendants are presumed innocent unless proven guilty. If convicted on the charges in the indictment, each defendant faces a mandatory minimum of five years to a maximum of 40 years in prison.
This case is being prosecuted by Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office. The investigation of this case was led by the Las Cruces and Roswell offices of the FBI and Lea County Drug Task Force with assistance from the Las Cruces office of the DEA and New Mexico State Police. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Armed Robbers SentencedRead the Press Release
United States Attorney Deborah R. Gilg announced that Senior United States District Judge Lyle E. Strom sentenced Anthony Aranda to 10 years, 10 months’ imprisonment and Jamie Speelman to 12 years, 3 months’ imprisonment for their involvement in robberies that occurred in November of 2013. Both defendants pled guilty to the crimes that occurred in the Omaha, Nebraska area. While they listed no permanent address, they are from the Sioux City area.
On November 22, 2013, at approximately 3:30 a.m. the defendants stole a GMC Sierra pickup at gunpoint near 17th and N streets. The owner was outside brushing snow off her car as she prepared to go to work. At about 10:25 pm the same day, Aranda and Speelman robbed the Midtown Gas and Grocery located at 1222 S. 24th street. They each entered the store with a gun, demanded money, and left with approximately $435.00. Aranda pled guilty to carjacking and brandishing a firearm. He received a sentence of 3 years and 10 months on the carjacking and an additional 7 years for brandishing a firearm. Speelman pled guilty to the Midtown robbery for which she received a sentence of 5 years and 3 months and an additional 7 years for brandishing a firearm. By statute the sentences on the firearms charges have to be served after they have served their time on the carjacking and robbery charges.
The case was investigated by the Omaha Police Department and Federal Bureau of Investigation.
Ardmore Man Sentenced to 15 Months for Bank Theft, Embezzlement and MisapplicationRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that RICHARD PAUL GEURIN, 48, of Ardmore, Oklahoma, was sentenced to 15 months imprisonment, followed by 24 months of supervised release for Bank Theft, Embezzlement and Misapplication, in violation of Title 18, United States Code, Section 656.
The charge arose from an investigation by the Federal Bureau of Investigation. The defendant was indicted in August 2014 and pled guilty in September 2014.
The Indictment alleged that from on or about February 3, 2011, until on or about February 24, 2014, in the Eastern District of Oklahoma, defendant RICHARD PAUL GEURIN, being an officer, director, agent, or employee of, or connected in a capacity with, First Bank & Trust of Duncan, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud the said First Bank & Trust of Duncan, Oklahoma, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys, funds, assets or securities entrusted to the custody or care of First Bank & Trust of Duncan, Oklahoma, in that the defendant withdrew cash from the accounts of certain bank customers and misapplied, embezzled, abstracted and purloined the funds for his own use or benefit.
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 Rob Wallace represented the United States.
Albuquerque Man Pleads Guilty to May 2014 Robbery of Bank of America BranchRead the Press Release
ALBUQUERQUE – Randy Lee Gallahan, 55, of Albuquerque, N.M., pleaded guilty this morning to robbing the Bank of America branch located on 4th Street NW in Los Ranchos de Albuquerque, N.M., in May 2014.
Gallahan was arrested on May 3, 2014, on a criminal complaint alleging that he robbed the Bank of America branch that day. On May 21, 2014, Gallahan was indicted and charged with armed bank robbery.
During today’s change of plea hearing, Gallahan pled guilty to an information, and admitted robbing the bank by approaching a bank teller and suggesting to the teller that he had a gun or weapon. Gallahan further admitted confessing to the robbery several hours later when police tracked him down at an apartment complex. At the time, Gallahan was wearing the same clothes he wore when he committed the bank robbery, had proceeds from the robbery in pants pocket, and a replica handgun in his jacket.
Gallahan has been in federal custody since his arrest and remains detained pending a sentencing hearing which has yet to be scheduled. At sentencing, Gallahan faces a statutory maximum penalty of 20 years in prison.
This case was investigated by the Albuquerque office of the FBI and the Bernalillo County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Kimberly A. Brawley.
Albany, New York - Man was Sentenced to 327 Months in Prison for Two Counts of Distribution of Child PornographyRead the Press Release
ALBANY, NEW YORK – RAYMOND T. DRAKE, age 53, of Albany, New York, was sentenced today to 327 months in prison for two counts of distribution of child pornography, one count of receiving child pornography, and three counts of possession of child pornography by Chief United States District Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola. Drake must also serve a lifetime term of supervised release and register as a sex offender.
As part of his March 5, 2014 plea, DRAKE admitted that he distributed images of child pornography by e-mail and through a file sharing program. On January 25, 2013, investigators searched DRAKE’s residence and recovered more than 600 of photographs and several videos depicting child pornography.
"Child pornography is the most despicable victimization of our most vulnerable," said United States Attorney Richard S. Hartunian. "People who engage in viewing it and helping distribute it will be punished. My office will work with our federal and local partners to discover and prosecute defendants who engage in this crime."
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman as part of Project Safe Childhood. 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. For more information about Project Safe Childhood, please visit
www.projectsafechildhood.gov
5 Men Charged with Armed Robbery of Shop ‘N Save in CahokiaRead the Press Release
This case is one of many brought as a result of the United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Byron “Josh” Holton, 26, from Cahokia, LaMarcus D. Jackson, 28, from Centreville, Undray C. Webb, 25, from Cahokia, Devante J. Hodges, 22, from Cahokia and Durand L. Harper, 25, from Cahokia, have all been charged on a two-count Complaint with Interference with Commerce by Robbery, which is a violation of the Hobbs Act, and Carry and Use of a Firearm During a Crime of Violence in connection with the armed robbery of the Shop ‘n Save that occurred in Cahokia, Illinois on January 11, 2015.
The complaints filed in the U.S. District Court allege that on January 11, 2015 at approximately 9:40 p.m. four masked and gloved individuals entered the Shop ‘n Save grocery store located at 1028 Camp Jackson Road in Cahokia, Illinois. The four individuals were armed with a black handgun, a chrome semi-automatic handgun, a long barreled revolver, and a long rifle with a high capacity magazine. The four masked men pointed the firearms at employees and customers within Shop ‘n Save and threatened to kill them if they were not given money from the store safe. An employee was forced to fill a black book bag with money from the safe and the four men then fled on foot. Over $7,000 was taken during the robbery. The investigation led to the identification of Durand Harper as the “look out” and “getaway driver” before and after the robbery, and to Josh Holton, LaMarcus Jackson, Undray Webb, and Devante Hodges as the four masked gunman.
“I would like to stress the tremendous cooperation and coordination between the various federal and local departments resulting in the bringing of charges in this case. Great sharing of information and old-fashioned police work by the FBI, Sauget, and Cahokia resulted in armed individuals being swiftly brought to account.” said United States Attorney Wigginton.
If convicted of a violation of the Hobbs Act, each defendant faces a term in prison of up to 20 years, a fine of up to $250,000, or both, and a term of supervised release of up to 3 years. If convicted of the offense of Carry and Use of a Firearm During a Crime of Violence, all five defendants face a minimum term in prison of 7 years up to a maximum term of Life, consecutive to, meaning in addition to, any term of imprisonment imposed on the Hobbs Act violation, as well as a fine of up to $250,000 and a term of supervised release of up to 5 years.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The case is being investigated by the Cahokia Police Department, the Sauget Police Department, and the Federal Bureau of Investigation as part of the Metro East Armed Robbery Initiative. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Wednesday 11 February 2015
Wingate, Texas, Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — Larry Richie Fields, 45, of Wingate, Texas, appeared today in federal court before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to one count of transportation of child pornography. Fields, who has been in federal custody since his arrest in January on related charges, faces a maximum statutory penalty of not less than five years and up to 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release. Sentencing will be set at a later date. Acting U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to documents filed in the case, on October 25, 2014, Fields used the Internet to transport two images of child pornography using an online social networking service. Over a period of years, beginning no later than 2012, Fields used various social networking services and online storage services to post and store images depicting minors engaging in sexually explicit conduct. Fields used multiple usernames to trade, collect, transport, and receive child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Dallas Internet Crimes Against Children (ICAC) Task Force; the Texas Department of Public Safety, Criminal Investigations Division; the Taylor County Sheriff’s Office; and the San Angelo Police Department, Special Operations Division. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
White County Man Sentenced to 25 Years in Federal Prison on Child Pornography ChargesRead the Press Release
Follow @SDILNewsA White County man was sentenced on February 10, 2015, to federal prison on child pornography charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
“Keeping predators away from children remains my highest priority.” noted United States Attorney Wigginton. “Some folks just need to be taken out of our society for such heinous acts.”
Gary Richard Walters, 39, of Norris City, IL, was sentenced to 300 months in prison and 7 years of supervised release. Walters had previously pleaded guilty to a one count Indictment which charged Production of Child Pornography, in that on July 6, 2013, in White County, Walters did knowingly entice and coerce a minor to engage in sexually explicit conduct, for the purpose of Walters producing a video of such conduct.
The investigation in this case was conducted by the Federal Bureau of Investigation.
The case is being handled by Assistant United States Attorney George Norwood.
White County Man Sentenced on Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsA White County man was sentenced on February 6, 2015, to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Luke L. Burnett, 31, of Crossville, IL, was sentenced to 108 months in prison, three years’ supervised release following his imprisonment, and fined $200. Burnett had previously pleaded guilty to one count in a federal indictment. Count 1 charged that on March 7, 2014, in White County, Burnett did knowingly and intentionally possess with the intent to distribute a mixture or substance containing methamphetamine.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the White County Sheriff’s Department with the assistance of the Illinois State Police and the Indiana State Police.
The case is being handled by Assistant United States Attorney George Norwood.
West Virginia Woman Pleads Guilty in Mystery Shopper ScamRead the Press Release
PITTSBURGH - A West Virginia woman pleaded guilty in federal court to a charge of fraud conspiracy, United States Attorney David J. Hickton announced today.
Linda Walker, 60, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, Walker was involved in a Nigerian “Mystery Shopper” scam whereby she knowingly prepared and addressed fraudulent mail containing counterfeit instruments to victims, who believed they were acting as mystery shoppers. The victims unwittingly received the counterfeit commercial and Postal money orders and checks and cashed them to make small purchases for purposes of evaluating the commercial services provided. They then wire transferred excess funds back to Walker and others. After these transactions, the money orders and checks were returned as counterfeit by the victims’ banks and they were left to repay the bank from their own funds.
Judge Bissoon scheduled sentencing for June 5, 2015, at 11 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Homeland Security Investigations conducted the investigation leading to the prosecution of Linda Walker.
Warren Doctors Plead Guilty to Unlawful Distribution of Prescriptions PillsRead the Press Release
Two physicians who practiced in Warren pleaded guilty today to writing prescriptions for oxycodone without medical justification, and one also pleaded guilty to health care fraud, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by DEA Special Agent in Charge Joseph P. Reagan, Special Agent in Charge Lamont Pugh III of the U.S. Department of HHS Office of Inspector General’s Chicago Regional Office, and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office.
During a hearing before U.S. District Judge Nancy Edmunds, Hussein “Sam” Awada, 45, of Royal Oak, admitted that from late 2010 through early 2012, he conspired with James Lyons, a patient “marketer,” to write prescriptions for oxycodone and Roxicodone in the names of people who were brought to him by Lyons, for no medical purpose. Lyons has admitted that he paid Awada for those prescriptions, then bought the pills from the “patients” and re-sold them to street dealers.
Awada also admitted that during this same time he billed Medicare, Medicaid, and Blue Cross Blue Shield for numerous medical procedures that were not medically justified. Awada’s plea agreement acknowledged that he prescribed more than 80,000 oxycodone and Roxicodone as part of his conspiracy with Lyons, and defrauded Medicare, Medicaid, and Blue Cross of about $2.3 million.
Lyons was recently sentenced to 48 months in custody for his part in this scheme.
Luis Collazo, 55, of Farmington Hills, admitted that in late 2012 he provided prescriptions to patients for controlled substance medications such as oxycodone although he knew that the patients had no medical need for the medications.
McQuade said, "More people die from overdoses of prescription drugs in America than from overdoses of all other drugs combined. We hope that prosecuting the doctors who are putting these drugs on the streets will deter others from contributing to this epidemic.”
DEA Special Agent in Charge Reagan stated, “The DEA has made it a priority to address the dangerous practice of illegally diverting prescription medications. Prescription drugs, such as oxycodone and Roxicodone, are controlled substances for a very good reason. If they are abused, they can lead to addiction, illness, or even death. As physicians, Mr. Awada and Mr. Collazo violated the public trust by illegally diverting prescription drugs on to the streets. These guilty pleas make it clear that the DEA, and our partners in law enforcement, will continue to utilize our investigative techniques to bring to justice those individuals that are responsible for the illegal distribution of prescription medicines.”“Not only did these physicians practice medicine, they practiced drug dealing and fraud. They put the public’s health and safety at risk and stole vital taxpayer dollars”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our law enforcement partners to root out individuals who choose to abandon their professional obligations and commit criminal acts that jeopardize the public’s well-being and essential health care programs”.
Based on his guilty pleas Hussein Awada is facing a maximum of thirty years in prison and a fine of up to $1,250,000. Luis Collazo is facing a maximum of twenty years in prison and a $1 million fine. Both will also lose their privilege to write controlled substance prescriptions.
Vice President Biden and Attorney General Holder Honor Retired Lieutenant Brian Murphy and Officer Sam Lenda of the Oak Creek Police Department with the Medal of ValorRead the Press Release
WASHINGTON - Vice President Joe Biden and United States Attorney General Eric Holder today awarded the Public Safety Officer Medal of Valor to Retired Lieutenant Brian Murphy and Officer Sam Lenda of the Oak Creek Police Department, both outstanding law enforcement officers who, along with others locally and nationally, exhibited exceptional courage in protecting others, saving lives, and promoting the safety and the security of our communities—all above and beyond the call of duty.
Lieutenant Murphy and Officer Lenda received this important award for their valiant and selfless efforts during the hate crimes-prompted shootings at the Sikh Temple of Wisconsin on Sunday, August 5, 2012. Responding to numerous calls about a violent disturbance at the Gurdwara, Lieutenant Murphy first saw two fatally injured victims and the suspect running out of the place of worship. When Lieutenant Murphy drew his weapon, the suspect fired at him, hitting him in his throat, his hand, and his legs. Shortly thereafter, when Officer Lenda arrived on the scene, he began shooting at, striking, and partially disabling the shooter, who then crawled out of sight and took his own life.
Unaware of whether there were additional people perpetrating the violence, Officer Lenda then drove to the location of the shot and determined that the shooter was dead. He then sent other, responding officers of the Oak Creek Police Department to the location of Lieutenant Murphy, who, though seriously wounded, waved them off and directed them to assist and support members of the congregations in and around the Gurdwara.
After the initial shooting, the investigation of it, led by the Federal Bureau of Investigation and supported by many other law enforcement agencies, units, and offices, revealed that the shooter had entered the Temple and fired at least six rounds in the kitchen-pantry area, where many women and children were hiding. He then fled the building and into the adjacent parking lot, as Lieutenant Murphy was arriving on the scene. Approximately six minutes passed from the time of the first call until Officer Lenda incapacitated the shooter. Six revered members of the congregation died in this tragic event, and several others were injured. The courageous actions of both Lieutenant Murphy and Officer Lenda unmistakably prevented further injury and helped to save many lives.
In making the announcement of today’s special recognition, United States Attorney for the Eastern District of Wisconsin James L. Santelle commented: “In early August of 2014, on the second anniversary of the hate crimes violence at the Sikh Gurdwara in Oak Creek, our community gathered to recognize the supreme heroism and stellar law enforcement professionalism of Lieutenant Brian Murphy and Officer Savan “Sam” Lenda, both of the Oak Creek Police Department, by conferring on them the Attorney General’s Law Enforcement Congressional Badges of Bravery. In the 30 months since their selfless actions saved lives among the Sikh Congregation and confirmed for the world the commitment of all law enforcement to peace, understanding, engagement, and diversity, we continue to benefit from their service and its legacy—along with the critically important involvement of many other local, state, and federal officers who promote daily our safety and security. All of us in the Eastern District of Wisconsin join the Vice President and the Attorney General in again commending Brian and Sam and all of their colleagues for their valor.
Santelle continued: “In the wake of the most serious, life-sacrificing civil rights-related hate crime since the Sixteenth Street Baptist Church Bombing of September of 1963, we acknowledge today and always the abiding life, spirit, vision, and mission of our Sikh colleagues here in Eastern Wisconsin and across our nation. In the midst of this tragedy and in the 900 days that have passed since then, our Sikh colleagues have been steadfast in their courage, their industry, their service, and their partnership with people of all faiths and heritages in promoting the very best of what America is and always will be.”
In specific reference to the Medal of Valor recipients, Attorney General Holder added: “These are all exceptional individuals. Every one of them deserves our deepest gratitude and boundless respect. Yet even among the outstanding field of public servants who perform these critical responsibilities, day in and day out – in communities across the country – there are some who stand out. And today, with these prestigious medals, we recognize these exceptional few for extraordinary valor – above and beyond the call of duty.”
The Public Safety Officer Medal of Valor, authorized by the Public Safety Officer Medal of Valor Act of 2001, is the highest national award for valor presented to a public safety officer. The medal is awarded to public safety officers who have exhibited exceptional courage, regardless of personal safety, in the attempt to save or protect human life. Including today’s awardees, a total of 95 medals have been presented since the first recipients were honored in 2003.
The Medal of Valor is awarded by the President of the United States, or his designee, to public safety officers cited by the Attorney General. Public safety officers are nominated by the chiefs or directors of their employing agencies and recommended by the Medal of Valor Review Board. The Attorney General has designated the United States Department of Justice’s Office of Justice Programs (OJP) to serve as the federal point of contact for the Public Safety Medal of Valor.
More information about the award, the Medal of Valor Review Board members, and the nomination process is available at www.ojp.usdoj.gov/medalofvalor.
Vice President Biden and Attorney General Holder Honor Officer Andrew Michael Keith with Medal of ValorRead the Press Release
WASHINGTON, D.C. - Vice President Joe Biden and Attorney General Eric Holder today awarded the Public Safety Officer Medal of Valor to Officer Andrew Michael Keith of the Knoxville Police Department, who exhibited exceptional courage in saving and protecting others and whose heroic actions were above and beyond the call of duty.
Officer Keith receives the award for his heroic and quick reaction on March 13, 2012 to a Tennessee Highway Patrol car on fire after a collision with a truck. The car’s driver, Sgt. Lowell Russell, was unconscious and trapped in the vehicle.
When Officer Keith reached the scene, he radioed dispatch for the fire department to respond and used his shirt to beat back the flames while trying to reach the injured trooper. When he was able to make contact, he positioned Trooper Russell to keep the flames away from his body, while two citizens assisted in cutting Trooper Russell from his seatbelt. After freeing the trooper, Officer Keith then took control of the scene and kept people away from the vehicle, which exploded from a discharge of ammunition within. Due to the diligence of Officer Keith and the concerned citizens, Sgt. Russell survived the accident and his injuries and began rehabilitation a few weeks later.
United States Attorney William C. Killian stated, “Officer Keith exhibited remarkable valor, risking his own life to save the life of Sgt. Russell, and to protect bystanders from harm. He acted in the finest tradition of law enforcement on that night, reacting quickly to serve and protect his fellow citizens.”
At the ceremony, Attorney General Holder remarked, “These are all exceptional individuals. Every one of them deserves our deepest gratitude and boundless respect. Yet even among the outstanding field of public servants who perform these critical responsibilities, day in and day out – in communities across the country – there are some who stand out. And today, with these prestigious medals, we recognize these exceptional few for extraordinary valor – above and beyond the call of duty.”
The Public Safety Officer Medal of Valor, authorized by the Public Safety Officer Medal of Valor Act of 2001, is the highest national award for valor presented to a public safety officer. The medal is awarded to public safety officers who have exhibited exceptional courage, regardless of personal safety, in the attempt to save or protect human life. Including today’s awardees, a total of 95 medals have been presented since the first recipients were honored in 2003.
The Medal of Valor is awarded by the President of the United States, or his designee, to public safety officers cited by the Attorney General. Public safety officers are nominated by the chiefs or directors of their employing agencies and recommended by the Medal of Valor Review Board. The Attorney General has designated the U.S. Department of Justice’s department’s Office of Justice Programs (OJP) to serve as the federal point of contact for the Public Safety Medal of Valor.
More information about the award, the Medal of Valor Review Board members, and the nomination process is available at:www.ojp.usdoj.gov/medalofvalor.
Two U.S. Army Sergeants Plead Guilty to Taking Bribes While Deployed in AfghanistanRead the Press Release
Two sergeants with the U.S. Army have pleaded guilty for accepting bribes from Afghan truck drivers at Forward Operating Base Gardez, Afghanistan (FOB Gardez), in exchange for allowing the drivers to take thousands of gallons of fuel from the base for resale on the black market, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
James Edward Norris, 41, of Fort Irwin, California, and Seneca Darnell Hampton, 31, of Fort Benning, Georgia, each pleaded guilty before Chief U.S. District Judge Clay D. Land in the Middle District of Georgia to one count of conspiracy to commit bribery of a public official and one count of money laundering.
During their guilty pleas, Hampton and Norris admitted to conspiring with other soldiers stationed at FOB Gardez to solicit and accept approximately $2,000 per day from local Afghan truck drivers in exchange for permitting the truck drivers to take thousands of gallons of fuel from the base. Hampton admitted that he concealed the scheme by attributing the increase in fuel usage to colder winter temperatures.
Hampton and Norris admitted that they shipped the bribe money back to the United States in tough boxes. Norris further admitted that on June 7, 2013, after returning from deployment, he purchased a 2008 Cadillac Escalade with $31,000 cash derived from the bribery scheme. Hampton further admitted that on May 20, 2013, after returning from deployment, he purchased a 2013 GMC Sierra with $29,000 cash derived from the bribery scheme.
As part of their plea agreements, Hampton and Norris agreed to forfeit the proceeds they received from the bribery scheme and the vehicles they purchased with those proceeds, as well as to pay full restitution. Sentencing has been scheduled for May 21, 2015.
The case is being investigated by the U.S. Army Criminal Investigation Command, the Office of the Special Inspector General for Afghanistan Reconstruction, the Defense Criminal Investigative Service and the Defense Contract Audit Agency, Investigative Support Division. The case is being prosecuted by Trial Attorney John Keller of the Criminal Division’s Public Integrity Section.
Two Richland County Residents Indicted on Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsJesse L. Benefield, 27, of Claremont, IL, and Sherry K. Auteberry, 49, of Olney, Illinois, were indicted on February 3, 2015, on methamphetamine related charges in a two count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that from May 2014, until on or about January 26, 2015, in Richland County, and elsewhere within the Southern District of Illinois, Benefield and Auteberry conspired with others known and unknown to the Grand Jury to manufacture methamphetamine.
Count 2 charges that from November 2, 2008, to on or about January 23, 2015, in Richland County, Auteberry possessed pseudoephedrine pills, knowing and having reasonable cause to believe that the pills would be used to manufacture methamphetamine.
With respect to Count 1, Benefield and Auteberry each face up to 20 years in prison, up to a $1,000,000 fine, and supervised release of at least 3 years.
With respect to Count 2, Auteberry faces up to 20 years in prison, up to a $250,000 fine, and supervised release of up to 3 years.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Two New Jersey Men Charged in Scheme to Extort Thousands of Dollars from Hudson County ProjectRead the Press Release
NEWARK, N.J. – Two New Jersey men are in FBI custody today on charges arising from a scheme to extort thousands of dollars in corrupt payments in connection with arranging approvals to provide landfill materials for a Hudson County Improvement Authority project, U.S. Attorney Paul J. Fishman announced.
Gerard Pica, 65, of Middletown, New Jersey, and James Castaldo, 59, of Beachwood, New Jersey, were indicted by a federal grand jury Feb. 10, 2015, and each charged with two counts of conspiracy to commit extortion under color of official right affecting interstate commerce, two counts of extortion under color of official right affecting interstate commerce, and two counts of accepting and agreeing to accept corrupt payments. All the charges are related to Gerard Pica’s employment at the Hudson County Improvement Authority (HCIA). They are scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the documents filed in this case and statements made in court:
The HCIA was overseeing the construction of a nine-hole public golf course located at Lincoln Park West in Jersey City, New Jersey (the “LPW project”). As part of its construction, the LPW project required several hundred thousand cubic yards of soil, fill material and crushed stone to be incorporated into the site, as well as to serve as road bedding during the construction of the golf course. As the overseer of the LPW project, one of the functions of the HCIA – either directly or through a designated contractor – was to serve as a gatekeeper for any material to be delivered to the LPW site. It was the HCIA’s responsibility to solicit, evaluate and decide which contractors’ proposals to accept for the provision of soil and fill material for the LPW project.
From at least August 2010 to November 2011, Pica and Castaldo and others schemed to obtain payments from certain contractors in exchange for Pica and another individual using their influence over the HCIA on two matters. Within the HCIA, an individual referred to in the indictment as “Employee 1” had authority and discretion over matters involving the selection of, and the administration of the conduct of, contractors seeking to deliver soil and fill material to the LPW project site. As a result of Pica’s employment with the HCIA and his association with Employee 1, Pica had the ability to influence the HCIA’s decisions regarding the selection of contractors to provide soil and fill material to the LPW project.
The first three counts of the indictment involve an alleged scheme by Pica and Castaldo to obtain corrupt payments from a person listed in the indictment as “Individual 1,” who was an associate of Pica and the owner of an environmental consulting firm. Pica and Castaldo agreed to obtain payments from Individual 1 to be shared among Pica, Castaldo and Employee 1 in exchange for Pica and Employee 1 using their authority and influence at the HCIA to ensure that Individual 1 and Individual 1’s company received approval to provide soil and fill material for the LPW project, at a certain per ton price to be paid by Individual 1 to the HCIA. It was part of the agreement that Individual 1 would pay Castaldo $3 per ton of fill and soil material delivered to the site for the benefit of Pica, Castaldo and Employee 1.
In Counts Four through Six of the indictment, Pica and Castaldo arranged to obtain corrupt payments from a person referred to in the indictment as Individual 3, the owner of a recycling business in Bayonne, New Jersey. Pica and Castaldo agreed to obtain payments from Individual 3 to be shared among Pica, Castaldo, and Employee 1 in exchange for Pica and Employee 1 again using their authority and influence at the HCIA to ensure that Individual 3 and Individual 3’s company received approval to provide fill materials, including crushed stone, for the LPW project, at a certain per cubic yard price to be paid by Individual 3 to the HCIA. It was part of the arrangement that Individual 3 would pay Castaldo $2 per cubic yard of fill and soil material delivered to the site for the benefit of Pica, Castaldo and Employee 1.
Counts One, Two, Four and Five of the indictment carry a maximum penalty of 20 years in prison; Counts Three and Six carry a maximum penalty of 10 years in prison. The maximum fines for all of the violations are $250,000 or twice the gain or loss resulting from the offense.
The indictment also seeks forfeiture of $53,861 in connection with the commission of the offenses charge in the indictment.
U.S. Attorney Fishman credited special agents from the FBI, under direction of Special Agent in Charge Richard M. Frankel in Newark and special agents with the N.J. State Commission of Investigation, under the direction of Executive Director Philip J. Degnan, for the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys David L. Foster and Mark McCarren of the U.S. Attorney’s Office, Special Prosecutions Division in Newark.
15-055
Defense counsel:
Gerard Pica: Gerald Krovatin Esq., Newark
James Castaldo: TBDTwo Men Sentenced to Seven Years in Prison for Defrauding Investors in Separate Multi-Million Dollar Investment Fraud SchemesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced two defendants to lengthy prison sentences for operating separate multi-million dollar investment fraud schemes. Stephen E. Maiden, 41, of Vienna, Va., was sentenced to 84 months in prison, followed by one year of supervised release for carrying out an $8.9 million Ponzi scheme, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Maiden, who pleaded guilty to securities fraud in May 2013, was also ordered to pay $7,755,752 as restitution.
In a separate case, Judge Conrad sentenced James Alexander Shepherd, 59, of Vass, N.C to 84 months in prison and three years of supervised release for defrauding more than 100 investors of in excess of $6 million. Judge Conrad delayed issuing a final order of restitution to permit the parties to file additional court briefs. The United States is seeking a restitution order of approximately $8 million for victims of the scheme. Shepherd pleaded guilty to one count of securities fraud in June 2013.
United States v. Stephen Maiden
According to filed court documents and today’s sentencing hearing, Maiden, formerly of Charlotte, carried out the scheme through his Charlotte-based hedge fund, Maiden Capital Opportunity Fund (“Maiden Capital”), which he formed in 2006. According to court records, Maiden represented to his victims that the fund was doing well and was profitable. By at least February 2009, however, he had lost the majority of the fund’s assets in failed investments. Beginning in at least February 2009, Maiden began transmitting bogus account statements to his investor victims and to Maiden Capital’s fund administrator, falsely reporting favorable returns. To keep the scheme going, Maiden used money from new investors to satisfy withdrawal requests made by other fund investors, falsely characterizing the transactions as payments from Maiden Capital’s successful operations. As a result of his unlawful conduct, Maiden caused a total loss of at least $8.9 million to approximately 39 victims.
United States v. James Alexander Shepard
According to filed court documents and court proceedings, from 2006 to 2013, Shepherd defrauded investors in Union County and elsewhere of approximately $6 million. Court documents indicate that Shepherd carried out the fraud by promising his victims returns on their investments in funds Shepherd owned and controlled, including “The Shepherd Major Play Option Fund, L.P.” (the “Major Play Fund”) and the “Shepherd’s Model Hedge Fund” (the “Hedge Fund”). In addition, Shepherd had some individual investors that invested their money independent of any particular investment vehicle. In about 2006, and without his investors’ knowledge, Shepherd began misappropriating investor money from the Major Play Fund, and used it, among other things, to pay investors of his hedge fund, to trade in his personal accounts, and to fund the operations of his newsletter he distributed nationwide, court filings show. According to court records, Shepherd also used the money to fund his personal lifestyle, including to build a $2 million home and to make mortgage payments on that residence.
According to court records, to conceal his fraudulent conduct, Shepherd sent to investors certified financial statements for the Major Play fund, accompanied by an Independent Auditor’s Report. This assured investors that an independent audit on the fund had been conducted in compliance with the rules of the U.S. Commodities Futures Trading Commission (“CFTC”). The false financial statements also misrepresented to investor victims the financial condition of the fund. For example, in December 2012, Shepherd’s a fraudulent statement stated that the fund had a $6,041,850 cash balance, when in reality the fund had less than $100,000 at the time.
Shepherd used forged bank documents and names of fictitious bank employees, among other things, to trick an accountant into providing the Independent Auditor’s Report. According to court records, Shepherd’s scheme was uncovered when in March 2013 the accountant insisted on verifying the cash balance of fund’s bank account electronically, through the audit confirmation website www.confirmation.com, which is now the commonly used method of verification by accountants. Shepherd delayed and then refused to give the accountant authority to utilize the website to verify the cash balance of the Major Play Fund, court records show. In March 2013, the accountant notified the National Futures Association (NFA) that his audit opinion could no longer be relied upon.
In making today’s announcement, U.S. Attorney Anne Tompkins said “Prosecuting fraudsters who prey on innocent investors is a top priority of my Office. Each of these two defendants chose a path of deceit and lies to fulfill their greedy self-interest. As a result, both now have lengthy jail sentences to reflect on the inestimable damage they caused to their victims. My Office will continue to aggressively investigate and prosecute those who seek to victimize innocent investors.”
“These prison sentences are a stark reminder to con artists; no matter how elaborate or complex the scheme, you will be caught and held accountable. Unfortunately, victims lose billions of dollars annually to fraudsters. Investors should be cautious and question promises of large payoffs,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
Both Maiden and Shepherd have been released on bond and will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI handled both investigations. U.S. Attorney Tompkins also thanked CFTC and NFA for their invaluable assistance in Shepherd’s case.
Assistant U.S. Attorneys Kurt Meyers and Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte prosecuted Shepherd, and AUSA Odulio prosecuted Maiden.
Twice Removed Illegal Alien Sentenced to Time Served for Again Re-entering U.S.Read the Press Release
PITTSBURGH - A resident of Mexico pleaded guilty and was sentenced in federal court to 6 months time served on his conviction of reentry of removed alien, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Salvador Lopez-Santiz, a/k/a Salvadore Santos, 24, of Mexico.
According to information presented to the court, alien Lopez-Santiz, who had been twice before removed from the United States - on Oct. 13, 2012 and Oct. 24, 2012 - was found in the United States in Pittsburgh, Pa., on Aug. 12, 2014 without having obtained permission to reentry the country.
Prior to imposing sentence, Judge Schwab stated that the sentence was sufficient but not greater than necessary in this instance; but if defendant again re-enters the U.S. without permission a subsequent sentence could be substantially greater.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security for the investigation leading to the successful prosecution of Lopez-Santiz.
Tucson Cocaine Distributors SentencedRead the Press Release
TUCSON, Ariz. – Joel Sesma-Garcia, 40, was sentenced on Feb. 10, 2015, and Gerald Fidel Herrera, 41, was sentenced on Jan. 30, 2015, by U.S. District Judge Jennifer G. Zipps to 25 years and 15 years’ imprisonment, respectively, for their roles in a cocaine distribution ring that operated from 2008 to 2012 and spanned five states. Both are from Tucson, Ariz.
Between the Spring of 2008 and the arrests on Aug. 9, 2012, Sesma-Garcia and Herrera conspired to distribute over 527 kilograms of cocaine from Tucson, Ariz., to co-conspirators in Brooklyn, N.Y., Muscle Shoals, Ala., Cleveland, Ohio, and Bradenton, Fla. The cocaine was transported from Tucson to the distribution cities concealed within false compartments in vehicles that were either driven by co-conspirators or hauled cross-country on commercial car haulers. The co-conspirators in the distribution cities sent approximately $12 million in bulk cash back to Tucson as payment for the drugs, concealed within the same false compartments. Co-defendant Caleb Echeverria is pending sentencing on April 6, 2015, while 10 additional co-conspirators were arrested and prosecuted in New York, Alabama, and Arizona in connection with this criminal organization.
Investigators seized over $2.5 million in bulk cash and 17 firearms from the organization over the course of the conspiracy, during multiple traffic stops and search warrants in Alabama, Arizona, Arkansas, Kansas, Maryland, New York, and Ohio. The organization used drug proceeds to purchase dozens of vehicles to transport drugs and bulk cash, and for the personal use of Sesma-Garcia and his family. Among the luxury vehicles seized from Sesma-Garcia include a 2002 Ferrari Spyder, a 2008 Lamborghini Murcielago, a 2004 Lamborghini Gallardo, a 2008 Mercedes Benz AMG luxury sedan, a 2005 Hummer H2, a classic 1968 Chevy Camaro, and a 2001 Chevy Corvette.
The investigation in this case was conducted by the Organized Crime and Drug Enforcement Task Force (OCDETF) Tucson Strike Force, which is composed of agents and investigators from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Border Patrol, Tucson Police Department, South Tucson Police Department, and Sahuarita Police Department. The prosecution was handled by Mary Sue Feldmeier and Josh Ackerman, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-12-01676-TUC-JGZ
District of Arizona 4:13-cr-01946-CKJ
District of Arizona: 4:14-cr-01398-JAS
Eastern District of New York: 12-cr-00707-KAM
Northern District of Alabama: 11-cr-00399-KOB
Cuyahoga County (Ohio) Court of Commons: CR11-548633
District of Kansas: 5:12-cr-40061-DDCRELEASE NUMBER: 2015-010_Sesma-Garcia et al
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three men plead guilty to federal charges in BeckleyRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that three men pleaded guilty to federal charges in Beckley.
James Edward Chambers, 44, of Glen White, West Virginia, pleaded guilty to distribution of cocaine. He admitted that on Aug. 28, 2014, he sold cocaine to a confidential informant near Robert C. Byrd Drive in Beckley.
Sean Scott Hafesh, 26, of Trenton, New Jersey, pleaded guilty to distribution of heroin. He admitted that on Sept. 24, 2013, he sold heroin to a confidential informant on Skyline Drive in Beaver.
Chambers and Hafesh both face up to 20 years in federal prison and a $1 million fine. They are scheduled to be sentenced on May 20, 2015.
Michael Erwin Basham, 35, of Glen Daniel, West Virginia, pleaded guilty to using a communications device to commit a felony. He admitted that on Aug. 22, 2014, he used a phone to arrange the sale of oxycodone to a confidential informant.
Basham faces up to four years in federal prison and a $250,000 fine. He is scheduled to be sentenced on June 24, 2015.
United States District Judge Irene C. Berger presided over the plea hearings.
The cases are being investigated by the Beckley/Raleigh County Drug and Violent Crime Unit.
The cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Three Plead Guilty to Violating the Clean Air Act at the Former Consumers Energy Facility in Comstock TownshipRead the Press Release
GRAND RAPIDS, MICHIGAN – Three individuals have pled guilty to violating the federal Clean Air Act for their roles in what environmental investigators believe may be the largest asbestos release in Michigan since it was declared a hazardous air pollutant in 1971.
LuAnne LaBrie of Kalamazoo, formerly known as LuAnne McClain; Cory Hammond of Hastings; and Robert “Mike” White of Kalamazoo each pled guilty in federal court to violating the Clean Air Act. LaBrie pled guilty to the felony offense of failing to notify federal or state authorities that asbestos material would be stripped and removed at the former power generation facility located at 6800 East Michigan Avenue in Comstock Township, Michigan. Hammond and White each pled guilty to failing to adequately wet asbestos material while stripping and removing asbestos inside that facility, also a felony violation.
In 2011, LaBrie, Hammond, and White agreed to salvage valuable material from the facility and share in the proceeds. All three defendants knew that asbestos was present inside of the facility. LaBrie supervised and controlled the facility, visited the site on a regular basis, and communicated with White and Hammond concerning the status of the salvage operation. Despite knowing that Hammond, White, and other laborers were stripping and removing asbestos insulation from pipes and facility components, LaBrie failed to notify the U.S. Environmental Protection Agency (EPA) or the State of Michigan that the salvage operation would involve the removal of asbestos inside the facility. Hammond and White admitted to failing to adequately wet asbestos material that had been stripped and removed until it was collected and sealed in a leak-tight container to prevent the release of asbestos particulates during the salvage operation. The defendants agreed to pay restitution to the EPA for remediation costs associated with the illegal asbestos removal at the facility.
The defendants face a maximum of 5 years in prison and a $250,000 fine for the offense, but the Court will determine the sentence after considering the federal sentencing guidelines and statutory sentencing factors. LaBrie will be sentenced in April 2015 by U.S. District Judge Gordon J. Quist. Hammond and White will be sentenced in July 2015 by U.S. District Judge Robert J. Jonker.
“Companies and individuals handling regulated asbestos material must follow basic workplace practices designed to protect both the workers who handle the hazardous material and the air we all breathe,” said U.S. Attorney Patrick Miles. “Those who attempt to evade the law by cutting corners to maximize profits and harm our environment will be held accountable for their actions.”
“Asbestos can cause cancer and other serious respiratory diseases and must be handled legally and safely,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Michigan. “The defendants directed the break-up and removal of material containing asbestos, threatening not only the environment but the safety of their workers and the general public. Today’s pleas clearly show that anyone who tries to make money by breaking the law will ultimately pay the price.”
This case was investigated by the U.S. EPA Criminal Investigation Division, the Michigan Department of Natural Resources Environmental Investigation Section, and the Internal Revenue Service. Assistant U.S. Attorney Christopher O’Connor represented the United States.
Thirty Two Defendants Facing Federal or State Charges Alleging the Laundering of over $100 Million in Narcotics Proceeds Through Cash-For-Gold SchemeRead the Press Release
CHICAGO — Thirty-one defendants face federal money laundering charges for their roles in a conspiracy that allegedly laundered more than $100 million in drug proceeds for the Mexico-based Sinaloa Cartel by purchasing gold, reselling it to companies in Florida and California, then transmitting the money from the United States to Mexico. One additional defendant faces state money laundering charges in DuPage County. The federal charges, contained in a criminal complaint, stem from a multi-year investigation of money laundering and drug trafficking led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Internal Revenue Service’s Criminal Investigation Division; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), together with other federal, state, and local law enforcement agencies.
Agents this week seized 12 firearms while arresting 12 of the federal defendants. Ten of those defendants were arrested in the Chicago area, and two werearrested in Kentucky and Georgia. Four federal defendants, including two of the alleged conspiracy leaders, were already in state or federal custody. Fifteen defendants are fugitives, several of whom are believed to be in Mexico. Agents also arrested the defendant facing state charges. Prior to this week’s arrests, in the course of the three-and-a-half-year investigation, agents seized more than $2.8 million in U.S. currency, 28 firearms, 42 kilograms of cocaine (92 pounds), and over two tons of marijuana, as well as large amounts of heroin and methamphetamine.
Thirty-one of the defendants were charged with conspiring to launder narcotics proceeds for the Sinaloa Cartel in a 311-page criminal complaint that was filed Monday in U.S. District Court and unsealed following the arrests Tuesday morning. The federal defendants arrested yesterday in the Chicago area appeared before Magistrate Judge Daniel Martin in U.S. District Court yesterday and eight remain in federal custody pending detention hearings scheduled for later this week.
Alleged conspiracy leaders DIEGO PIENDA-SANCHEZ, 30, and CARLOS PARRA-PEDROZA, 31, were arrested on related money laundering charges in late-September 2014, while visiting the United States from their native Guadalajara, Mexico. A federal grand jury charged both men by indictment in December 2014, with multiple counts of money laundering based on four of the 49 separate instances of money laundering noted in the complaint filed on Monday. That case is currently before Judge Harry D. Leinenweber in U.S. District Court.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, with Gary Hartwig, Special Agent-in-Charge of HSI in Chicago; James C. Lee, Special Agent-in-Charge of IRS’s Criminal Investigation Division; and Carl J. Vasilko, Special Agent-in-Charge of ATF in Chicago. The following agencies also provided significant assistance in the investigation: the Drug Enforcement Administration; Cook County Sheriff’s Office; DuPage County Sheriff’s Office; Chicago Police Department; Buffalo Grove Police Department; the Joliet Metropolitan Area Narcotics Squad, and the United States Marshals Service. The investigation was conducted under the umbrella of the United States Organized Crime Drug Enforcement Task Force (OCDETF).
“The drug trade is driven by money earned at the expense of countless devastated lives and ravaged communities,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “These charges reflect the tireless work of federal, state, and local authorities to stop not only those individuals who make that destructive business possible, but profitable.”
“Chicago is a hub for narcotics money laundering, with dirty money changing hands all too often in public parking lots throughout the city and suburbs,” said Special Agent-in-Charge Hartwig. “Criminals are turning to sophisticated trade-based schemes to launder their money and cover their tracks, but these arrests should serve as a stern warning to those doing business with drug traffickers – you will ultimately pay the price.”
Special Agent in Charge James C. Lee of the Internal Revenue Service Criminal Investigation Division (IRS CI) in Chicago added, “IRS Criminal Investigation is committed to fighting the war on drugs. IRS CI brings, and will continue to bring, its financial expertise to disrupt and dismantle the Sinaloa Cartel’s drug trafficking organization.”
The complaint alleges that Pineda-Sanchez, Parra-Pedroza, and 29 associates laundered more than $100 million in drug proceeds since 2011 for the Sinaloa Cartel. The defendants’ money laundering activities on behalf of the Sinaloa Cartel spanned throughout the Unites States, including; Illinois, Wisconsin, Indiana, Ohio, Kentucky, Georgia, California, Texas, and North Carolina. Pineda-Sanchez and Parra-Pedroza are high ranking Mexico-based money brokers who allegedly used a network of individuals in Chicago, Fort Lauderdale, and Los Angeles to launder illicit drug proceeds through a gold-based scheme. According to the complaint, Pineda-Sanchez, Parra-Pedroza, and others routinely directed United States based members of their organization to collect narcotics proceeds, to use the money to purchase scrap and fine gold from local businesses, and to ship that gold to refineries based in Florida and California. The refineries in turn transmitted the cash value of the gold to Parra-Pedroza and other co-conspirators in Mexico.
As part of the undercover law enforcement operation, HSI Chicago collected more than $4.5 million in drug proceeds from 38 different money couriers on 49 occasions between June 2013 and August 2014.
The complaint details several instances in which Parra-Pedroza warned a confidential informant, who was working with law enforcement, of the dangers of losing drug money entrusted to the organization. In one such instance, Parra-Pedroza told the informant about unidentified Mexican associates who had coerced a man to accept responsibility for losing their drugs or money by “cut[ting] his fingers off.”
The money laundering complaint charges Pineda-Sanchez, Parra-Pedroza, and the following co-defendants with one count each of conspiring to commit money laundering: Jose Abel Mendoza-Parra, 22, of Mexico; Maria Loera-Alvarado, 36, of Mexico; Ernesto Ruiz-Ramirez, 25, of Joliet, Illinois; Mario Herrera, of Chicago; Anthony Leiva, 53, of Northlake, Illinois; Teodocio Caro, 54, of Mexico; Luis Reyna-Tellez, 19, of Cicero, Illinois; Hector Chavez-Cuevas, 36, of Cicero, Illinois; Juan Carlos Nunez-Galvez, of Berwyn, Illinois; Jose Sanantonio, 28, of Berwyn; Pedro Saucedo-Palominos, 42, of Chicago; Omar Lopez-Cabrera, 32, of Chicago; Virgil Durbin, 47, of Kentucky; Valentin Rodriguez, 37, of Markham, Illinois; Alma Lorena Ortiz de Rosas Vera, 38, of Mexico; Casmiro Isias-Padilla, 37, of Chicago; Efren Mota, 48, of Chicago; Felix Lemus-Guevara, 29, of Georgia; Pedro Urquiza-Osorio, 53, of Texas; Luis Armando Acosta-Vizcarra, 43, of Mexico; Joel Estrada, 27, of Chicago; Harranah Samori, 42, of Matteson, Illinois; Gabriel Salcedo, 53, of Berwyn; Tomas Salgado-Reyna, 30, Chicago; Oscar Acosta, 36, Melrose Park, Illinois; Federico Barrera-Perez, 45, of Chicago; Emmanuel Diaz, 28, of Naperville, Illinois; Jose Hernandez-Ochoa, 28, of Berwyn; Alfonso Nevarez, 40, of Northlake; and Oscar Montes-Lamas (deceased). Jaime Cabadas-Barajas, 30, of Chicago, faces one count of state money laundering charges in DuPage County.
If convicted, the defendants charged with federal money laundering face a maximum of 20 years’ imprisonment and a fine of $500,000 or twice the gross gain or loss resulting from the charged offense.
The government is represented by Assistant United States Attorneys Peter M. Flanagan and Ryan P. Fayhee, and by Special Assistant United States Attorney Minnie D. Yuen.
The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint