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Monday 9 February 2015
Toledo Man Faces Child Pornography IndictmentRead the Press Release
An indictment was filed charging Joshua R. McMillan, 26, of Toledo, with receipt and distribution of material involving the sexual exploitation of a child between January 23, 2013 and May 2, 2013, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation. The case is being handled by Assistant United States Attorney Alissa M. Sterling.
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.
Theresa Blow Imprisoned for Grand Isle EmbezzlementsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Theresa Blow, 65, who now lives in Enosburg Falls, was sentenced yesterday in United States District Court in Burlington to one year and one day of imprisonment following her guilty plea to a charge of federal program embezzlement. U.S. District Judge William K. Sessions III also ordered that Blow serve three years of supervised release following completion of her prison term and pay restitution of more than $117,000. The court ordered Blow to surrender to the Bureau of Prisons on March 10 to begin serving her sentence.
Last September, Blow pled guilty to a one-count information charging her with embezzling from the Champlain Islands Parent-Child Center, a non-profit pre-school and after-school care center in South Hero for which she served as a contract bookkeeper. According to court records, between 2010 and March 2014, Blow embezzled more than $61,000 from the Center by writing without authorization checks that were made payable to herself or to her husband's business, then forging the signature of the authorized signer on the Center's checking account. Blow deposited the forged checks into her personal bank account and used the proceeds for her own benefit.
The information charged that, in roughly the same time frame, Blow also embezzled tens of thousands of dollars from Grand Isle County, which she served as appointed treasurer since 2008. At today's sentencing, the court determined the Grand Isle County embezzlement totaled more than $39,500.
Additionally, the court found that Blow had embezzled $2400 from a third employer, the Law Office of David Carter, a law firm in South Hero.
This case was investigated by the Vermont State Police and the Federal Bureau of Investigation.
Blow is represented by Mark Kaplan. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Texas Man Sentenced for Illegal Export of Night Vision DevicesRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced David Kelley, age 46, of Richmond, Texas today to 18 months in prison followed by three years of supervised release for the unlawful export of arms and munitions, specifically, night vision devices.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to his plea agreement, Kelley ran a business named "Optical Solutions and More" that sold night vision and other military-style items, primarily over eBay. Kelley entered into distributor agreements with night vision manufacturers in which he acknowledged that he was aware of restrictions known as the International Traffic in Arms Regulations (ITAR) which prohibited the unlicensed export of U.S. munitions list items, including the export of night vision devices using Generations 2 and newer technology.
After entering into these agreements, Kelley discussed circumventing ITAR restrictions with foreign customers who responded to his internet listings. Between May 2011 and February 2012, Kelley made approximately 60 shipments containing
ITAR-restricted weapons parts and night vision devices destined for customers in 24 countries, including Argentina, Australia, Russia, the Philippines, United Kingdom and Japan. To disguise the ITAR violations, Kelley variously labeled these shipments as "toys," "toy blocks," "spotting scope," and "monocular parts." In exchange for these shipments, Kelley collected over $140,000 in 150 separate PayPal transactions.
In September 201l, an undercover HSI agent located in Baltimore posed as a buyer from New Zealand and contacted Kelley to ask if Kelley would export an ATN Generation 4 Monocular Night Vision Device. Kelley acknowledged in an email that such an export violated ITAR and demanded additional payment for risking prosecution. On October 24, 2011, Kelley exported the device, which is designated as a defense article on the U.S. munitions list, to New Zealand, without first obtaining a license from the State Department.
United States Attorney Rod J. Rosenstein praised ICE Baltimore for its work in the investigation and thanked Assistant U.S. Attorney Adam K. Ake, who prosecuted the case.
Taking Methamphetamine to Delivery Service Earns Modesto Man 46 Months in Federal Prison; Money Courier from Turlock Sentenced to 12 Months in Same CaseRead the Press Release
FRESNO, Calif. — Armando Mendoza, 21, a Modesto resident, was sentenced today by United States District Judge Lawrence J. O'Neill to 46 months in prison for possession of methamphetamine with the intent to distribute, and Guillermo Paredes, Jr., 26, a Modesto resident, was also sentenced today by Judge O’Neill to 12 months in custody for conspiracy to smuggle bulk cash, United States Attorney Benjamin B. Wagner announced.
According to court documents, Mendoza and Paredes were involved with methamphetamine trafficking from Modesto to Hawaii. On August 8, 2012, Mendoza took a package containing approximately 1 ½ pounds of methamphetamine to a shipping facility for delivery to Hawaii. Law enforcement intercepted that package. On August 16, 2012, Paredes and a companion were arrested at the Honolulu airport while waiting for a return flight to California. Paredes had about $42,000 cash concealed on his person and in his luggage while his companion had about $29,000 cash similarly concealed. Law enforcement seized that cash.
This case was the product of an investigation by the Drug Enforcement Administration, the Stanislaus Drug Enforcement Agency and the Modesto Police Department. Assistant United States Attorney Kevin Rooney prosecuted the case.
Remaining defendants Miguel Leontapia, Eduardo Leon, and Gilberto Leon are scheduled to be sentenced on March 2, 2015, before Judge O’Neill.
Service Members to Receive over $123 Million for Unlawful Foreclosures Under the Servicemembers Civil Relief ActRead the Press Release
The Justice Department announced today that under its settlements with five of the nation’s largest mortgage servicers, 952 service members and their co-borrowers are eligible to receive over $123 million for non-judicial foreclosures that violated the Servicemembers Civil Relief Act (SCRA). The five mortgage servicers are JP Morgan Chase Bank N.A. (JP Morgan Chase); Wells Fargo Bank N.A. and Wells Fargo & Co. (Wells Fargo); Citi Residential Lending Inc., Citibank, NA and CitiMortgage Inc. (Citi); GMAC Mortgage, LLC, Ally Financial Inc. and Residential Capital LLC (GMAC Mortgage); and BAC Home Loans Servicing LP formerly known as Countrywide Home Loans Servicing LP (Bank of America).
In the first round of payments under the SCRA portion of the 2012 settlement known as the National Mortgage Settlement (NMS), 666 service members and their co-borrowers will receive over $88 million from JP Morgan Chase, Wells Fargo, Citi and GMAC Mortgage. The other 286 service members and their co-borrowers are receiving over $35 million from Bank of America through an earlier settlement. The non-judicial foreclosures at issue took place between Jan. 1, 2006, and Apr. 4, 2012.
“These unlawful judicial foreclosures forced hundreds of service members and their families out of their homes,” said Acting Associate Attorney General Stuart F. Delery. “While this compensation will provide a measure of relief, the fact is that service members should never have to worry about losing their home to an illegal foreclosure while they are serving our country. The department will continue to actively protect our service members and their families from such unjust actions.”
“We are very pleased that the men and women of the armed forces who were subjected to unlawful non-judicial foreclosures while they were serving our country are now receiving compensation,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We look forward, in the coming months, to facilitating the compensation of additional service members who were subjected to unlawful judicial foreclosures or excess interest charges. We appreciate that JP Morgan Chase, Wells Fargo, Citi, GMAC Mortgage and Bank of America have been working cooperatively with the Justice Department to compensate the service members whose rights were violated.”
Section 533 of the SCRA prohibits non-judicial foreclosures against service members who are in military service or within the applicable post-service period, as long as they originated their mortgages before their period of military service began. Even in states that normally allow mortgage foreclosures to proceed non-judicially, the SCRA prohibits servicers from doing so against protected service members during their military service and applicable post-military service coverage period.
Under the NMS, for mortgages serviced by Wells Fargo, Citi and GMAC Mortgage, the identified service members will each receive $125,000, plus any lost equity in the property and interest on that equity. Eligible co-borrowers will also be compensated for their share of any lost equity in the property. To ensure consistency with an earlier private settlement, JP Morgan Chase will provide any identified service member either the property free and clear of any debt or the cash equivalent of the full value of the home at the time of sale, and the opportunity to submit a claim for compensation for any additional harm suffered, which will be determined by a special consultant, retired U.S. District Court Judge Edward N. Cahn. Payment amounts have been reduced for those service members or co-borrowers who have previously received compensation directly from the servicer or through a prior settlement, such as the independent foreclosure review conducted by the Office of the Comptroller of the Currency and the Federal Reserve Board. The Bank of America payments to identified service members with nonjudicial foreclosures were made under a 2011 settlement with the Department of Justice.
The NMS also provides compensation for two categories of service members: (1) those who were foreclosed upon pursuant to a court order where the mortgage servicer failed to file a proper affidavit with the court stating whether or not the service member was in military service; and (2) those service members who gave proper notice to the servicer, but were denied the full benefit of the SCRA’s 6% interest rate cap on pre-service mortgages. The service members entitled to compensation for these alleged violations will be identified later in 2015.
The following chart shows the number of service members who will be compensated by each of the servicers for the non-judicial foreclosures:
Amount of Money to be Distributed
Number of Service Members Eligible for Compensation
Bank of America
$35,369,756
286
Citi
$14,880,578
126
GMAC Mortgage
$13,720,588
113
JP Morgan Chase
$31,068,523
188
Wells Fargo
$28,358,179
239
TOTALS
$123,397,624
952
Borrowers should use the following contact information for questions about SCRA payments under the National Mortgage Settlement:
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Bank of America borrowers should call Rust Consulting, Inc., the settlement administrator, toll-free at 1-855-793-1370 or write to BAC Home Loans Servicing Settlement Administrator, c/o Rust Consulting, Inc., P.O. Box 1948, Faribault, MN 55021-6091.
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Citi borrowers should call Citi toll-free at 1-888-326-1166.
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GMAC Mortgage borrowers should call Rust Consulting Inc., the settlement administrator, toll-free at 1-866-708-0915 or write to P.O. Box 3061, Faribault, Minnesota 55021-2661.
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JPMorgan Chase borrowers should call Chase toll-free at 1-877-469-0110 or write to P.O. Box 183224, OH-7160/DOJ, Columbus, Ohio 43219-6009.
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Wells Fargo borrowers should call the Wells Fargo Home Mortgage Military Customer Service Center toll free at 1-877-839-2359.
Service members and their dependents who believe that their SCRA rights have been violated should contact an Armed Forces Legal Assistance office. To find the closest office, consult the military legal assistance office locator at http://legalassistance.law.af.mil and click on the Legal Services Locator. Additional information about the Justice Department’s enforcement of the SCRA and the other laws protecting service members is available at www.servicemembers.gov.
Today’s settlement was announced in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes, enhancing coordination and cooperation among federal, state and local authorities, addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Note: The release is corrected to reflect that the other 286 service members and their co-borrowers are receiving over $35 million from Bank of America through an earlier settlement.
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Sacramento Man Sentenced to Two Years for Conspiracy in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Joshua Clymer, 28, of San Francisco, was sentenced today to two years in prison for conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced. Clymer previously pleaded guilty pursuant to a plea agreement.
According to court documents and evidence presented at the trial of co-defendant Leonard Williams, from late 2006 into 2008, Clymer and Williams conspired to carry out a loan origination and property flipping mortgage fraud scheme using the companies Diamond Hill Financial and Bay Area Real Estate Holdings. To carry out the scheme, Clymer and Williams recruited underqualified buyers, including family and friends, to purchase homes with promises of cash back, no money down, and illusory equity in the homes. Clymer and others assisted these home buyers in securing loans with fraudulent loan applications that contained lies about the buyers’ employment, income, assets, and intent to occupy the homes as a primary residence. In most cases the loan applications falsely stated that the buyers worked at Diamond Hill Financial, a company associated with Clymer and Williams. Hundreds of thousands of dollars in home loans were issued as a result. The profit to Clymer and Williams varied from $5,000 to over $30,000 per transaction, with the two of them often splitting the proceeds.
Clymer’s sentencing marks the last of 14 defendants to be sentenced for mortgage fraud offenses in connection with this and related cases. Others who have already been convicted and sentenced include Garret Gililland (94 months), Leonard Williams (87 months), Niche Fortune (57 months), Kesha Haynie (46 months), Eric Clawson (37 months), Anthony Symmes (35 months), Carlos Chamorro (27 months), Shane Burreson (23 months), Christopher M. Chiavola (22 months), William E. Baker (18 months), Nicole Magpusao (535 days), Brandon Resendez (9 months), and Remy Heng (6 months home detention). Twelve of the defendants pleaded guilty, including Clymer. Juries have convicted the two defendants who went to trial, Haynie and Clymer’s coconspirator Leonard Williams.
This case is the product of an investigation by the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation; and the Butte County District Attorney’s Office’s Major Crimes Unit. Assistant United States Attorneys Christopher S. Hales and Audrey B. Hemesath prosecuted the case.Retired Air Force General Agrees to Pay $125,000 to Settle Civil PenaltyRead the Press Release
ALEXANDRIA, Va. – David Deptula, 62, of Oakton, Virginia, has agreed to pay $125,000 to settle civil penalty claims relating to allegations that he engaged in a prohibited conflict of interest while he served as the Chief Executive Officer for Mav6, LLC (“Mav6”), a privately owned defense contracting company.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
Deptula most recently served as a Lieutenant General with the United States Air Force until his retirement on October 1, 2010. Following his retirement from the Air Force, Deptula became the CEO for Mav6 on February 22, 2011. From June 2011 to July 2012, while serving as CEO of Mav6, Deptula engaged in communications or appearances on behalf of Mav6 before United States’ officers regarding a U.S. military defense program known as Blue Devil Block II, a program in which the United States contends Deptula participated personally and substantially while he was with the Air Force. As part of the civil settlement, Deptula has agreed to pay $125,000 to resolve allegations that his conduct violated conflict of interest prohibitions under federal law. The civil penalty claims settled by Deptula and the United States are allegations only; there has been no determination of civil liability.
This case was investigated by the FBI’s Washington Field Office and the U.S. Air Force Office of Special Investigations. The resolution obtained in this matter was the result of an investigation by Assistant U.S. Attorneys Gerard Mene and Peter Hyun of the Civil Division of the U.S. Attorney’s Office for the Eastern District of Virginia.Raleigh Identity Thief Sent to Prison for 42 Months for Role in Credit Card and Cigarette Trafficking SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that today in federal court Chief United States District Judge James C. Dever, III sentenced IBRAHIM BARRIE, 32, of Raleigh, to serve a total of 42 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and Conspiracy to Commit Access Device Fraud, in violation of Title 18, United States Code, Section 1029(b)(2). BARRIE was also ordered to make restitution to victims.
According to the Criminal Information and other details discussed in open court, BARRIE was a participant in a credit card and cigarette trafficking scheme. The purpose of the scheme was to use stolen credit card account information to purchase large quantities of cigarettes in North Carolina which were resold in New York. To carry out the scheme, participants acquired stolen credit card data from other conspirators and encoded the stolen data onto the magnetic strip of what appeared to be legitimate gift cards. Managers in the scheme, including BARRIE, then distributed the cards to “runners” who traveled to various gas stations, convenience stores, and grocery stores located around the state to purchase dozens of cartons of cigarettes at a time using the counterfeit gift cards. The runners returned the cigarettes to the managers in the scheme, who paid the runners a kickback. Managers, including BARRIE, periodically make trips to New York to sell the cigarettes on the black market for cash.
On July 22, 2012, BARRIE was arrested on state charges after a concerned citizen indicated that BARRIE and others attempted to have the citizen purchase gasoline on BARRIE’s credit card in exchange for payment. A subsequent search of BARRIE and his vehicle revealed 20 cartons of cigarettes and 11 counterfeit gift cards. Additionally, on October 24, 2012, BARRIE was stopped by Virginia State Police. During a search of the defendant’s car police located 600 cartons of cigarettes.
Investigation of BARRIE’s case was conducted by the United States Secret Service, with the assistance of the Raleigh Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Perry County Woman Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn February 6, 2015, Lori A. Helmer, 49, of Pinckneyville, Illinois, was sentenced on a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Helmer, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 87 months in federal prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between 2012 and June 2013, in Perry, Jackson, and Randolph Counties. Evidence at the plea and sentencing hearings established that Helmer was involved with co-defendants Michael Lasky and Daniel Caraker and others in the manufacture of methamphetamine. Helmer would travel with others to obtain pseudoephedrine pills for use in the manufacturing process. At sentencing, the district court determined that Helmer was responsible for unlawfully obtaining more than 133 grams of pseudoephedrine. Lasky and Caraker were previously sentenced to prison terms of 108 months and 121 months, respectively, for their role in the methamphetamine conspiracy.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, DuQuoin Police Department, Pinckneyville Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration. The Perry County State’s Attorney’s Office also assisted in the investigation.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
Ohio man sentenced to more than three years for painkiller traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Ronald Gene Vance, 63, of Columbus, Ohio, was sentenced today to 37 months in prison for oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the U.S. Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Vance repeatedly traveled to Baltimore, Maryland to purchase prescription pills for redistribution and sale in the Ohio County, West Virginia area.
Vance pled guilty in April 2014 to one count of “Conspiracy to Distribute Schedule I and Schedule II Controlled Substances.”
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Northwood Man Faces Child Pornography ChargesRead the Press Release
An indictment was filed charging Steve Nesbit, 41, of Northwood, with receipt and distribution of child pornography and possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Toledo. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Norfolk Man Sentenced to 17 ½ Years for Receipt of Child PornographyRead the Press Release
NORFOLK, Va. – Kevin D. Jackson, age 35, of Norfolk, Va., was sentenced today to 17 ½ years in prison, followed by lifetime supervised release, for receipt of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after Jackson’s sentencing before Senior United States District Judge Robert G. Doumar.
A Norfolk federal grand jury indicted Jackson on June 19, 2014, on four counts relating to child pornography. Jackson pleaded guilty to receipt of child pornography on October 2, 2014.
According to court records and evidence, Jackson sought out images of child pornography via the Internet for a number of years. A forensic examination confirmed that Jackson retained on his computer 54 videos and 189 pictures of child pornography. Jackson was also found to be sexually abusing a toddler and producing images of that abuse. Jackson was convicted in the City of Norfolk for the sexual abuse. Jackson also admitted to sexually abusing other minors.
This case was investigated by the FBI. Assistant United States Attorneys Randy Stoker and Elizabeth Yusi prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-99.Tweet
Modesto Resident Pleads Guilty in Tax Fraud ConsipracyRead the Press Release
FRESNO, Calif. — Christine Rose Caraway, 34, of Modesto, pled guilty today to one count of conspiracy to defraud the United States, United States Attorney Benjamin B. Wagner announced.
According to court documents, from about December 2010 to May 2011, Caraway and her former spouse Heath Roberson obtained personal identifying information from over 40 individuals. Caraway then used this information to generate false tax returns seeking over $121,000 in tax refunds and submitted them to the IRS. Caraway and Roberson funneled the tax refunds into accounts they controlled.
This case is the product of an investigation by the Internal Revenue Service’s Criminal Investigation Division. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Roberson pled guilty in April 2014 to one count of conspiring to defraud the United States. In July 2014, he was sentenced to serve two years, nine months in prison and to pay over $66,000 in restitution to the IRS.
Caraway is in custody and is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on April 20, 2015. She faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Modesto Man Pleads Guilty to Stealing $127,000 in Government BenefitsRead the Press Release
FRESNO, Calif. —James Giulio Davidson, 59, resident of Modesto, California, pleaded guilty today to conspiring to steal government benefits, United States Attorney Benjamin B. Wagner announced.
According to the plea agreement and court documents, Davidson and his deceased wife and former co-defendant, Shirley Kay Davidson, stole more than $64,000.00 in Supplemental Security Income (“SSI”) benefits and $63,000.00 in In-Home Supportive Services (“IHSS”) from approximately January 2003 to July 2010. Shirley Kay Davidson created a fake person named Sharon Guinn to act as her and James Davidson’s purported IHSS caretaker. James and Shirley Davidson regularly filled out false time cards for the purported work provided by Sharon Guinn and then cashed the IHSS wages sent to this fake person for their personal use and benefit. Further, James and Shirley Davidson failed to report this fraudulent source of income to the Social Security Administration (“SSA”) during redetermination interviews for continued SSI benefits. Additionally, James and Shirley Davidson stated to the SSA that they separated in November 2007 when in fact they continued to live together, which increased the amount of SSI benefits they received.
This case was the product of an investigation by the Social Security Administration, Office of Inspector General. Assistant United States Attorneys Grant B. Rabenn and Michael Tierney are prosecuting the case.
Davidson is scheduled to be sentenced by Judge Anthony W. Ishii on April 20, 2015. Davidson faces a maximum statutory penalty of 5 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.Missouri and Arkansas Physician Charged with Online Sexual Enticement of A ChildRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Donald W. Lamoureaux, age 68 of Ash Flat, Arkansas, appeared today in Fort Smith before United States Magistrate Judge Mark E. Ford on a complaint for charges of Attempted Coercion and Enticement of a Minor for Sexual Purposes. According to public information, Lamoureaux practiced family medicine in Horseshoe Bend, Arkansas and Dexter, Missouri and was also employed at the VA Medical facility in West Plains, Missouri. Lamoureaux resided in Sharp County, Arkansas and was arrested in West Plains, Missouri on Friday, February 6, 2015, by the West Plains Police Department.
U.S. Attorney Eldridge commented, “The conduct at issue in this case is frightening. The threat of abuse to young and innocent children is serious, ever-present, and very real. We must and will do everything in our power to bring those involved in these despicable crimes to justice.”
Chief Kevin Lindsey stated, “Through the efforts of the Fort Smith Police Department’s Street Crimes Unit and their subsequent investigation into the activities of Lamoureaux, a suspected predator of young children has been apprehended and will be held accountable by our judicial system. The law enforcement officers directly involved in this investigation can take pride and satisfaction that their efforts have protected at least one child from an alleged predator.”
"This investigation highlights the continued successful partnership between HSI and the Fort Smith Police Department," said Raymond R. Parmer, Jr. special agent in charge of HSI New Orleans. "Identifying and investigating those who prey on innocent children via the Internet will continue to be one of HSI's highest priorities."
According to the complaint, in January of 2015, Officers with the Fort Smith Police Department began an undercover online investigation directed at individuals who were using the internet to target minors for purposes of engaging in illegal sexual activity. During the operation, an undercover officer entered an internet chat room posing as an adult mother and offering her four year old daughter for sexual exploitation. The undercover officer then made contact with the Defendant, later identified as Donald Wayne Lamoureaux. During the online conversation, the Defendant stated that he was a family practice doctor living in Northeast Arkansas, and provided the undercover officer with a picture of himself. From the information and picture provided, the undercover officer was able to identify the individual as Donald W. Lamoureaux. The Defendant then expressed that he would like to meet the undercover officer and her four year old daughter for sexual purposes. Following more discussion, the undercover officer and the Defendant scheduled a meeting for February 6, 2015 at a hotel in West Plains, Missouri. The
ostensible and stated purpose for the meeting was for the Defendant to sexually abuse the child. On February 2, 2015, the Defendant asked the undercover officer to set up a bank account so he could deposit money for expenses associated with the transportation of the four-year-old child to meet with the Defendant. A deposit in the amount of $300.00 was made by the Defendant on February 4, 2015. Lamoureaux was arrested in West Plains, Missouri on Friday, February 6, 2015, when he arrived at the meet location.This case is being investigated by Homeland Security Investigations, the Fort Smith Police Department, the West Plains Police Department, and the Southwest Missouri Cyber Crimes Task Force. Assistant United States Attorney Dustin Roberts is prosecuting the case for the United States.
The charges in the indictment are only allegations. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law. The charge of Attempted Coercion and Enticement carries a punishment of not more than 20 years imprisonment, not more than $250,000.00 fine, or both. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violations. The sentence will not exceed the statutory maximum for each count in this case, and in most cases will be less than the maximum.
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Media AdvisoryRead the Press Release
United States Attorney Conner Eldridge will hold a press conference today immediately following the arraignment of Donald Wayne Lamoureaux, the Missouri physician who was arrested on a complaint following an investigation for online sexual solicitation of a child on Friday, February 6, 2015.
WHO:Conner Eldridge, U.S. Attorney, Western District of Arkansas
Chief Kevin Lindsey, Fort Smith Police Department
Representative from Homeland Security InvestigationsWHAT: Press Conference
WHEN:
Monday, February 9, 2015
Immediately Following Conclusion of Arraignment Hearing
which begins at 2:00 p.m.WHERE:
U. S. Attorney’s Office
414 Parker Avenue
Fort Smith, AR 72901* * * E N D * * *
Mayfield Man Pleads Guilty to Production of Child PornographyRead the Press Release
Attempted to trade images of minor victim with undercover officer
ALBANY, NEW YORK – RICHARD HASTINGS, 19, of Mayfield, NY entered a plea of guilty in Albany today to production and possession of child pornography before Chief United States District Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian, Nicolas DiNicola, Assistant Special Agent in Charge, Homeland Security Investigations, and Captain Timothy Munro, New York State Police Troop G, Bureau of Criminal Investigation. Sentencing is set for June 3, 2015 at 10 AM.
In July 2013, RICHARD HASTINGS produced sexually explicit photographs of a minor victim and e-mailed some of these photographs to an undercover law enforcement officer in an effort to trade them for additional images of child pornography. On August 8, 2013, law enforcement officers executed a federal search warrant at the defendant’s Mayfield residence and seized his computer which contained the images of the minor victim and additional images of child pornography. As a result, he was placed under arrest. His brother, ROBERT HASTINGS, was also charged with federal child pornography offenses and is currently awaiting trial.
RICHARD HASTINGS faces a statutory minimum of fifteen years of imprisonment, a maximum sentence of thirty years of imprisonment, and a maximum fine of $250,000. He will remain in custody until sentencing.
This case was investigated by Homeland Security Investigations and the New York State Police. The case is being prosecuted by Assistant United States Attorney Sean O’Dowd, as part of Project Safe Childhood.
Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
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Man Sentenced to Prison for Illegal Re-Entry After Being Deported for an Aggravated FelonyRead the Press Release
Contact: Steve Young
A man who re-entered the United States following an aggravated felony conviction was sentenced on February 5, 2015, to 18 months’ in prison.
Cesar Toledo-Aguilar, age 33, from Mexico, received the prison term after a November 6, 2014, guilty plea to one count of illegal re-entry as an aggravated felon.
At the guilty plea, Toledo-Aguilar admitted he had re-entered the United States without permission after being removed from the country on May 5, 2001. On October 14, 2015, Toledo-Aguilar was encountered by ICE agents after being arrested in Sioux County, Iowa, for supplying alcohol to an underage person. Toledo-Aguilarhad been convicted of aggravated assault in the Superior Court of Cobb County, Georgia on July 29, 1999.
Toledo-Aguilar was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Toledo-Aguilar was sentenced to 18 months’ imprisonment. He must also serve a 1-year term of supervised release. A special assessment of $100 was imposed. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by HSI and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information is available at https//ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-4080.
Man Sentenced to 70 Months for Credit Card Fraud, Identity Theft, and Selling Skimming DeviceRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Lazaro Hernandez-Cabrales (31, Tampa) to five years and ten months in federal prison for conspiracy to commit credit card fraud and aggravated identity theft. The Court also ordered him to forfeit $19,010.26, which are the proceeds traceable to his criminal conduct. He pleaded guilty on November 19, 2014.
According to court documents, in early 2014, investigators identified Ricardo Romero-Mesa and Lazaro Hernandez-Cabrales as co-leaders of a credit card fraud ring. Together, and with others, they used numerous stolen credit and debit card accounts to generate counterfeit credit cards. They used the credit cards to purchase hundreds of reloadable Visa gift cards. The gift cards were then used to purchase items at home improvement stores, that were later returned in exchange for cash.
Investigators determined that the conspirators initially purchased the stolen account numbers, many from Navy Federal Credit Union and Armed Forces Bank, from an online website based in Eastern Europe. Later, Hernandez-Cabrales stole account numbers by obtaining keys to gas pumps and installing skimmers on the pumps’ payment computers.
During a search of the residence shared by Romero-Mesa and Hernandez-Cabrales on February 17, 2014, investigators seized more than 200 gift cards, credit cards, and hotel room keys, some of which had been re-encoded with other credit and debit card account numbers. Agents also recovered computers, receipts for merchandise returns, high-end purses and clothing, and receipts for the purchase of MoneyGram wire transfers from the United States to the Ukraine. Further investigation revealed that Hernandez-Cabrales had wired more than $23,545 to recipients in Ukraine and Russia to purchase at least 800 stolen account numbers from a website that offers them for sale.
In August 2014, Hernandez-Cabrales was arrested at his residence, shortly after selling credit card skimming equipment and gas pump keys to another individual. A subsequent search of his residence resulted in the seizure of counterfeit credit cards, a gas pump key, and a credit card re-encoder. In total, investigators recovered more than 1,000 stolen credit card numbers issued by more than 15 different financial institutions.
Ricardo Romero-Mesa pleaded guilty to his role in this case on January 14, 2015. His sentencing date has not yet been set.
This case was investigated by the Tampa Police Department, the Florida Department of Law Enforcement, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Louisiana Woman Sentenced in Million Dollar Fraud SchemeRead the Press Release
HOUSTON – Monica Causgrove, 43, of Lafayette, La., has been ordered to federal prison following her conviction of wire fraud in a scheme in which she caused Hess Corporation more than $1 million in loss, announced U.S. Attorney Kenneth Magidson. She pleaded guilty Nov. 24, 2014.
Today, U.S. District Judge U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, handed Causgrove a 12-month and one day sentence to be immediately followed by three years of supervised release to include six months of home confinement. She was further ordered to pay $1,061,845.15 in restitution.
At the time of her guilty plea, she acknowledged she used her company credit card and her position at Hess to run up unauthorized charges in excess of $1 million, including a stay at the Ritz-Carlton in Montego Bay, Jamaica.
Causgrove was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the Secret Service. Assistant U.S. Attorney Andrew Leuchtmann is prosecuting the case.
Linn County Man Sentenced for Federal Firearms ViolationRead the Press Release
KANSAS CITY, KAN. – A Linn County man was sentenced Monday to 41 months in prison for a federal firearms violation, U.S. Attorney Barry Grissom said.
Jeffrey Nicholas, 48, Pleasanton, Kan., pleaded guilty to one count of possessing firearms and ammunition after a felony conviction.
In his plea, Nicholas admitted the investigation began in November 2011 when the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted a compliance inspection at Big Bear’s Gifts & Pawn Shop in Pleasanton. The owner of the store, co-defendant Barry Walker, was at that time Linn County Sheriff. Walker was allowing Nicholas, who had a prior felony conviction, to handle, sell and possess firearms, in violation of federal law. Walker was counseled on the violation and agreed to prevent Nicholas from having any further access to firearms.
Despite the warnings from ATF, Nicholas continued to be involved in handling, selling and possessing firearms at the store during 2012 and 2013.
Co-defendant Barry Walker was sentenced to 15 months in federal prison.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Sheri McCracken for their work on the case.
Lincoln Resident Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Will H. Quick, 62, of Lincoln, Nebraska, was sentenced on Friday, February 6, 2015, in Lincoln, Nebraska, to 63 months in prison by United States District Judge John M. Gerrard, for possessing child pornography. Quick will also be on supervised release for 8 years after serving his prison sentence. This conviction will also require him to register as a sex offender once released.
On April 23rd, 2014, the Lincoln Police Department was investigating computers sharing child pornography files via the internet. On that date, an investigator identified an IP address as having files available for sharing and was able to download files from a computer at that IP address. The IP address was registered to the residence occupied by Mr. Quick during the time specified.
On May 19th, 2014, investigators executed a search warrant at Mr. Quick’s residence and made contact with him. During the execution of the search warrant, Quick was interviewed and admitted he used file sharing software on his computer to file share. A preview was conducted on Quick's computer and numerous files depicting females under the age of 18 years old posing in sexually explicit positions were located. A forensic examination revealed over 10,000 images and videos of child pornography.
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."
This case was investigated by the Lincoln Police Department.
Lawrence Man Sentenced for Embezzling from Cleaning CompanyRead the Press Release
TOPEKA, KAN. – A Lawrence man has been sentenced to two years in federal prison for embezzling from his company and his business partners, U.S. Attorney Barry Grissom said. He was ordered to pay $619,000 in restitution.
Mark W. Elzea, 55, Lawrence, Kan., pleaded guilty to one count of interstate transportation of stolen funds.
In his plea, Elzea admitted the crime occurred while he was controller and part owner of Pur-O-Zone, a janitorial and cleaning equipment business located in Lawrence. In 2004, Elzea began embezzling funds from Pur-O-Zone and his three business partners who also owned part of the business. The crime came to light in May 2014 when one of the partners was contacted by a vendor about not having received a check. The partners discovered numerous unauthorized checks signed by Elzea and made payable to Cardmember Service Chase Bank in Illinois.
Grissom commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Kansas City Man Pleads Guilty to 16 Counts of Filing False Tax ReturnsRead the Press Release
KANSAS CITY, KAN. – A Kansas City man pleaded guilty Monday to 16 counts of assisting in the preparation of false federal income tax returns.
Marcus Lovelle Blockmon, 42, Kansas City, Mo., entered his plea in U.S. District Court in Kansas City, Kan. He was indicted Oct. 8, 2014. The indictment alleged that during 2008 through 2011 he assisted 10 taxpayers in preparing false tax returns. The returns contained false information about filing status, wages, rental loss, self-employment expenses, itemized deductions, tax credit, taxable refund, annuities and exemptions.
Sentencing will be scheduled at a later time. He faces a maximum penalty of three years in federal prison and a fine up to $250,000 on each count. Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Tris Hunt for their work on the case.
Kalamazoo Man Sentenced to Life in Prison in Federal Crystal Methamphetamine and Witness Tampering ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Francis Block, 45, of Kalamazoo, Michigan was sentenced to life in prison by Chief U.S. District Judge Paul Maloney for various drug and witness tampering charges. Block was convicted following a four-day jury trial that concluded on October 2, 2014.
In 2012 officers of the Kalamazoo Valley Enforcement Team (KVET), with the assistance of Drug Enforcement Administration (DEA) agents, initiated “Operation Roadblock,” an investigation of methamphetamine trafficking by Block and others known to associate with him. In January 2013, KVET officers executed a warrant to search Block’s then-residence in Cooper Township, Michigan, and seized methamphetamine lab components, $29,800 U.S. currency, and multiple firearms. Later in 2013, KVET officers learned that Block likely had connections with crystal methamphetamine suppliers from Mexican drug cartels.
In October 2013, investigators executed a series of multi-ounce controlled purchases of crystal methamphetamine directly from Block. On October 23, 2013, KVET and DEA investigators arrested Block during Block’s attempted sale of four ounces of crystal methamphetamine to the informant. Later that night, the officers executed five search warrants at homes and premises around Kalamazoo, including a storage unit on Stadium Drive where Block and several of his drivers made frequent stops before and after drug deals. At a residence on North Arlington Street, officers located and seized, among other items, more than a pound of crystal methamphetamine, handwritten drug ledgers, and nearly $20,000 U.S. currency. At the Stadium Drive storage unit they located and seized nine more pounds (over four kilograms) of crystal methamphetamine and a pill bottle bearing Block’s name. The Stadium Drive seizure was KVET’s largest-ever crystal methamphetamine seizure. The street value of the methamphetamine seized during the controlled purchases and raids exceeded $350,000.
The investigation continued and between late 2013 and early 2014, five additional confederates of Block’s were charged with federal and state drug felonies. One defendant, Scott Webber of Kalamazoo, Michigan, fled prosecution and remains a fugitive. The grand jury later indicted Block and his sister, Elizabeth McNett, on witness tampering charges, after Block and McNett plotted to hire a convicted murderer who shared a cell with Block to firebomb an informant’s car and intimidate government witnesses.
With the exception of Webber, all of Block’s co-defendants pled guilty to one or more federal charges. Chief Judge Maloney sentenced the following co-defendants as follows:
Jeffrey Starrett, 43, of Kalamazoo, Michigan: 60 months in custody;
Michael Head, 39, of Kalamazoo, Michigan: 84 months in custody;
Martin McCaul, 52, of Paw Paw, Michigan: 48 months in custody; and
Elizabeth McNett, 44, of Lawton, Michigan: 33 months in custody.
In a related case, U.S. District Judge Janet Neff sentenced Ben Alan Phelps, 29, of Kalamazoo, Michigan, to 36 months in custody.
Block was the only defendant to take his case to trial, which was handled by Assistant U.S. Attorneys Heath M. Lynch and Sean M. Lewis. Following the trial, at which Phelps and all of Block’s convicted co-defendants testified against him, the jury found Block guilty of all charges.
On Monday, February 9th, Chief Judge Maloney sentenced Block to serve life in prison. Judge Maloney stated that the case represented “one of the largest methamphetamine distribution operations in the history of our district, and Mr. Block was the leader of it.” Commenting on Block’s recorded phone calls introduced at trial as evidence of Block’s witness tampering efforts, Judge Maloney noted Block’s “contempt for the system” and described being “flabbergasted” that Block was “so self-centered and egotistical that he brought his own sister into the conspiracy.”
In sentencing Block to life in prison and denying Block’s motion for a shorter sentence, Judge Maloney stated that he “d[id] not find any mitigating factors” and described Block’s criminal history as that of “an individual who is either unwilling or unable to reform himself.” According to Judge Maloney, no criminal sentence Block previously served “managed to convey to Mr. Block that he should stop dealing drugs.”
Kalamazoo Man Sentenced to Life in Prison in Federal Crystal Methamphetamine and Witness Tampering ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Francis Block, 45, of Kalamazoo, Michigan was sentenced to life in prison by Chief U.S. District Judge Paul Maloney for various drug and witness tampering charges. Block was convicted following a four-day jury trial that concluded on October 2, 2014.
In 2012 officers of the Kalamazoo Valley Enforcement Team (KVET), with the assistance of Drug Enforcement Administration (DEA) agents, initiated “Operation Roadblock,” an investigation of methamphetamine trafficking by Block and others known to associate with him. In January 2013, KVET officers executed a warrant to search Block’s then-residence in Cooper Township, Michigan, and seized methamphetamine lab components, $29,800 U.S. currency, and multiple firearms. Later in 2013, KVET officers learned that Block likely had connections with crystal methamphetamine suppliers from Mexican drug cartels.
In October 2013, investigators executed a series of multi-ounce controlled purchases of crystal methamphetamine directly from Block. On October 23, 2013, KVET and DEA investigators arrested Block during Block’s attempted sale of four ounces of crystal methamphetamine to the informant. Later that night, the officers executed five search warrants at homes and premises around Kalamazoo, including a storage unit on Stadium Drive where Block and several of his drivers made frequent stops before and after drug deals. At a residence on North Arlington Street, officers located and seized, among other items, more than a pound of crystal methamphetamine, handwritten drug ledgers, and nearly $20,000 U.S. currency. At the Stadium Drive storage unit they located and seized nine more pounds (over four kilograms) of crystal methamphetamine and a pill bottle bearing Block’s name. The Stadium Drive seizure was KVET’s largest-ever crystal methamphetamine seizure. The street value of the methamphetamine seized during the controlled purchases and raids exceeded $350,000.
The investigation continued and between late 2013 and early 2014, five additional confederates of Block’s were charged with federal and state drug felonies. One defendant, Scott Webber of Kalamazoo, Michigan, fled prosecution and remains a fugitive. The grand jury later indicted Block and his sister, Elizabeth McNett, on witness tampering charges, after Block and McNett plotted to hire a convicted murderer who shared a cell with Block to firebomb an informant’s car and intimidate government witnesses.
With the exception of Webber, all of Block’s co-defendants pled guilty to one or more federal charges. Chief Judge Maloney sentenced the following co-defendants as follows:
Jeffrey Starrett, 43, of Kalamazoo, Michigan: 60 months in custody;
Michael Head, 39, of Kalamazoo, Michigan: 84 months in custody;
Martin McCaul, 52, of Paw Paw, Michigan: 48 months in custody; and
Elizabeth McNett, 44, of Lawton, Michigan: 33 months in custody.In a related case, U.S. District Judge Janet Neff sentenced Ben Alan Phelps, 29, of Kalamazoo, Michigan, to 36 months in custody.
Block was the only defendant to take his case to trial, which was handled by Assistant U.S. Attorneys Heath M. Lynch and Sean M. Lewis. Following the trial, at which Phelps and all of Block’s convicted co-defendants testified against him, the jury found Block guilty of all charges.
On Monday, February 9th, Chief Judge Maloney sentenced Block to serve life in prison. Judge Maloney stated that the case represented “one of the largest methamphetamine distribution operations in the history of our district, and Mr. Block was the leader of it.” Commenting on Block’s recorded phone calls introduced at trial as evidence of Block’s witness tampering efforts, Judge Maloney noted Block’s “contempt for the system” and described being “flabbergasted” that Block was “so self-centered and egotistical that he brought his own sister into the conspiracy.”
In sentencing Block to life in prison and denying Block’s motion for a shorter sentence, Judge Maloney stated that he “d[id] not find any mitigating factors” and described Block’s criminal history as that of “an individual who is either unwilling or unable to reform himself.” According to Judge Maloney, no criminal sentence Block previously served “managed to convey to Mr. Block that he should stop dealing drugs.”
Justice Department Resolves Lawsuit Against Sairam Enterprises Inc. for Discriminating Against Disabled Veteran with Service AnimalRead the Press Release
The Department of Justice reached an agreement today to resolve a lawsuit it brought against Sairam Enterprises Inc. LLC, which owns a hotel in Tulsa, Oklahoma. The proposed consent decree, which must be approved by the court, resolves a 2014 lawsuit that the department filed against Sairam Enterprises over allegations that it violated the Americans with Disabilities Act (ADA) when it denied a room at a Days Inn to a person with a service animal and his family.
The lawsuit alleged that on July 31, 2010, a veteran of the U.S. Air Force and the U.S. Marine Corps who relies on a service animal sought a hotel room at the Days Inn and Conference Center Tulsa which had a no pets policy. The Days Inn is now known as the Tuscany Inn. The veteran wanted a room for himself, his family and his service dog. His service dog is a German shepherd, which performs tasks related to his disabilities.
The complaint alleged that Sairam violated Title III of the ADA when it refused to rent the family a room because of the service dog. The ADA requires that hotels allow guests to stay with their service animals without being subjected to additional fees. Sairam denies the allegations.
Under the terms of the consent decree, Sairam will pay $5,000 to the veteran and his wife and will provide its employees with training regarding the ADA and the protections it provides to guests with service animals. The consent decree also requires Sairam to post signs and other announcements at its hotel stating its willingness to lodge travelers with service animals.
“The Department of Justice is determined to enforce the right of all people with disabilities to have equal access to hotels and other public accommodations,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “This settlement vindicates the rights of a veteran and his family and protects the rights of all future travelers with disabilities who pass through Tulsa.”
“The Northern District of Oklahoma is committed to protecting the rights of people with disabilities to ensure equal access to public accommodations,” said U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. “My office will continue to work to eliminate barriers to the use of public accommodations and to protect every citizen’s rights.”
To read the consent decree and for more information on the ADA, visit the ADA website at www.ada.gov. Those interested in finding out more about this consent decree or the obligations of public entities under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website. ADA complaints may be filed by email to [email protected].
Justice Department Resolves Lawsuit Against Sairam Enterprises Inc. for Discriminating Against Disabled Veteran with Service AnimalRead the Press Release
WASHINGTON The Department of Justice reached an agreement today to resolve a lawsuit it brought against Sairam Enterprises Inc. LLC, which owns a hotel in Tulsa, Oklahoma. The proposed consent decree, which must be approved by the court, resolves a 2014 lawsuit that the department filed against Sairam Enterprises over allegations that it violated the Americans with Disabilities Act (ADA) when it denied a room at a Days Inn to a person with a service animal and his family.
The lawsuit alleged that on July 31, 2010, a veteran of the U.S. Air Force and the U.S. Marine Corps who relies on a service animal sought a hotel room at the Days Inn and Conference Center Tulsa which had a no pets policy. The Days Inn is now known as the Tuscany Inn. The veteran wanted a room for himself, his family and his service dog. His service dog is a German shepherd, which performs tasks related to his disabilities.
The complaint alleged that Sairam violated Title III of the ADA when it refused to rent the family a room because of the service dog. The ADA requires that hotels allow guests to stay with their service animals without being subjected to additional fees. Sairam denies the allegations.
Under the terms of the consent decree, Sairam will pay $5,000 to the veteran and his wife and will provide its employees with training regarding the ADA and the protections it provides to guests with service animals. The consent decree also requires Sairam to post signs and other announcements at its hotel stating its willingness to lodge travelers with service animals.
“The Department of Justice is determined to enforce the right of all people with disabilities to have equal access to hotels and other public accommodations,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “This settlement vindicates the rights of a veteran and his family and protects the rights of all future travelers with disabilities who pass through Tulsa.”
“The Northern District of Oklahoma is committed to protecting the rights of people with disabilities to ensure equal access to public accommodations,” said U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. “My office will continue to work to eliminate barriers to the use of public accommodations and to protect every citizen’s rights.”
To read the consent decree and for more information on the ADA, visit the ADA website at www.ada.gov. Those interested in finding out more about this consent decree or the obligations of public entities under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website. ADA complaints may be filed by email to [email protected].
(U.S. v. Sairam Enterprises Inc. )
Jackson Residents Plead Guilty in Identity Theft ConspiracyRead the Press Release
Jackson, Miss - Booker Tarvin, 38, and Bianca Harris, 30, both of Jackson, pled guilty today, before U.S. District Judge David Bramlette III, to conspiracy to steal mail and to commit identity theft, announced U.S. Attorney Gregory K. Davis and Acting Special Agent in Charge Jerome R. McDuffie with IRS Criminal Investigation.
Tarvin, who is currently serving a 151 month sentence in federal prison for conspiracy to distribute a controlled substance, admitted his role in obtaining stolen identities and using them to file false federal income tax returns. Harris’s role in the conspiracy was to convert the fraudulently obtained refund checks and debit cards into cash. Their two co-conspirators, Shemeka Fulford, 37, and Sharon Gibbs, 61, also of Jackson, pled guilty last month. Gibbs, a U.S. postal carrier, retrieved the fraudulent tax refund checks and debit cards from mailboxes on her postal route, and Fulford submitted many of the false returns.
Jerome R. McDuffie, Acting Special Agent in Charge, IRS - Criminal Investigation, stated, "Booker Tarvin and his co-conspirators have caused great detriment to the taxpayers we are entrusted to serve. They have stolen money from the system we are entrusted to protect. Now, they will face the consequences for their crimes. Because identity theft is still among the top concerns for the public, it is important for the taxpayers out there to know that we are committed to utilizing our resources to combat the problem of stolen identity refund fraud. This case is one of several in the central Mississippi area, and it is my hope that we are getting the word out to the public that IRS-CI is working diligently to bring these fraudsters to justice."
All four defendants will be sentenced by Senior U.S. District Judge David Bramlette in Jackson. Gibbs and Fulford will be sentenced on March 19, 2015 at 10:00 a.m. Tarvin and Harris will be sentenced on April 30, 2015 at 10:30 a.m. Each defendant faces up to five years in federal prison, a $250,000 fine, mandatory restitution to the United States, and forfeiture of the proceeds of the scam.
Investigation of Wayne County Government CompletedRead the Press Release
United States Attorney Barbara L. McQuade announced today the completion of the federal corruption investigation of Wayne County government. Joining McQuade in the announcement was Paul M. Abbate, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
The investigation, which began three years ago, resulted in the convictions of five individuals, including Wayne County’s Chief Information Officer and an Assistant Wayne County Executive who served as the Director of HealthChoice of Michigan. The United States will not seek additional charges in connection with the investigation.
“I would like to thank and commend the officials and staff of the Wayne County Executive and the Wayne County Corporation Counsel for their cooperation during this investigation,” said McQuade. “Their assistance and openness allowed federal investigators to carefully review and assess a number of complex issues regarding the operation of county government.”
Huntington cocaine dealer sentenced to federal prisonRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Curtis Rollins, 34, of Huntington, was sentenced to eight months in federal prison.
In October 2014, Rollins pleaded guilty to using a communication device to facilitate a drug crime. He admitted that on Dec. 31, 2013, he made a call to known drug dealer Kenneth Newman, during which he stated he had two people needing something. He made multiple calls that day, one in which he requested “two extra things,” referring to cocaine he intended to provide to someone else.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The Drug Enforcement Administration and Huntington Police Department were in charge of the investigation. Assistant United States Attorney Greg McVey was in charge of the prosecution.
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Herrin Man Pleads Guilty to Heroin OffenseRead the Press Release
Follow @SDILNewsOn February 6, 2015, Adam M. Calvert, 30, Herrin, Illinois, pled guilty to a one-count indictment charging conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and January 2014, in Williamson and Jackson Counties. Evidence at the plea hearing established that Calvert was involved with others in the distribution of heroin. On multiple occasions, Calvert sold heroin to a confidential source working for law enforcement. During the execution of a July 2013 search warrant at Calvert’s Herrin residence, officers located syringes, pre-recorded buy money, a digital scale, plastic baggies with white residue and numerous other drug-related items. During a later January 2014, arrest, officers located heroin in Calvert’s sock. At that time, officers again located digital scales, used syringes, and other drug-related items at Calvert’s residence.
Calvert is currently being held without bond pending a May 13, 2015, sentencing hearing. At that time, Calvert faces up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group and the Drug Enforcement Administration. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Head of Newman drug ring gets 10 years in federal prisonRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Kenneth Dewitt Newman, 32, of Huntington, was sentenced to 10 years in federal prison.
In May 2014, Newman, also known as “K-Kutta,” pleaded guilty to possession of controlled substances with intent to distribute. He also pleaded guilty in October 2014 to possession of a firearm in furtherance of drug trafficking. On Jan. 20, 2014, Drug Enforcement Administration agents conducted a search of Newman’s residence in the 1800 block of Artisan Ave. in Huntington. During the search, agents located and seized cocaine, oxycodone, heroin, MDMA and marijuana, which Newman admitted he intended to sell. He further admitted that from 2010 to 2014, he, with the aid of others, sold drugs from his home, and that he possessed a firearm to help facilitate their distribution.
Newman received five years in federal prison for each charge to which he pleaded guilty, to run consecutively for a total of 10 years.
Newman, his brother George Antonio Newman, their mother Darlene Newman and 12 others were indicted for their various roles in the drug distribution conspiracy. The charges against Newman and his associates arose out of a long-term investigation led by the DEA, Huntington Police Department and Metropolitan Drug Enforcement Network Team.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The Drug Enforcement Administration and Huntington Police Department were in charge of the investigation. Assistant United States Attorney Greg McVey was in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement, 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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Harnett County Man Found Guilty of Kidnapping, Use of A Firearm in A Crime of Violence, and Felon in Possession of A FirearmRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced today that a jury convicted BRADLEY CAMPBELL, 23of Harnett County, North Carolina, of kidnapping, use and carrying of a firearm during a crime of violence, and of being a felon in possession of a firearm. The jury returned its verdict following a trial in federal court before United States District Judge James C. Fox.
Following a domestic dispute which had occurred previously in the day, CAMPBELL, in the early morning hours of January 17, 2014, entered the home in Spring Lake, NC he shared with a woman. At the time, the home was occupied by 17-year old and 18 year old males, the woman, her oldest child, and two younger children of both CAMPBELL and the woman. The 18 year old victim was shot by CAMPBELL and held captive; the 17 year old male escaped; and the mother with an infant escaped approximately one hour later. CAMPBELL, after repeated demands to law enforcement that they bring him marijuana, released the shooting victim approximately 5 hours after the violence began. The two additional children were released approximately 2 hours following that. At sentencing, CAMPBELL faces a minimum of ten years and up to life imprisonment.
The events and scene were handled by the Harnett County Sheriff’s Office, and further investigation completed by the Harnett County Sheriff’s Office and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Cumberland County Sheriff’s Office provided forensic assistance.
Government Intends to Seek Dealth Penalty for Leader of Violent Newark Street GangRead the Press Release
South Side Cartel Leader Charged with Six Murders in Racketeering Indictment
NEWARK, N.J. – U.S. Attorney General Eric Holder has authorized and directed that the death penalty be sought against the leader of a violent Newark street gang charged with six murders, U.S. Attorney Paul J. Fishman announced today.Formal notice of intent to seek the death penalty was presented in court today to Farad Roland, 30, leader of the South Side Cartel gang in Newark. Roland and two-codefendants were previously arraigned on a 24-count superseding indictment charging them with violations of the Racketeer Influenced Corrupt Organizations Act (RICO), murder, kidnapping, robbery, carjacking, drug conspiracy and other violent acts in aid of racketeering and related charges.
Five of the six murders charged in the superseding indictment are death-eligible offenses. Attorney General Holder authorized the U.S. Attorney to seek the death penalty on Jan.12, 2015. The criminal case against Roland and his codefendants is pending before U.S. District Judge Esther Salas, who has scheduled the trial for Jan. 11, 2016. The formal notice was given to Roland today before Judge Salas in Newark federal court.
If convicted of any of the death penalty eligible murders, a separate penalty phase would follow. If the jury found that the death penalty should not be imposed, Farad Roland would be sentenced to life without the possibility of parole. The case would be the second capital case tried in the history of the District of New Jersey, and the first since 2007.Attorney General Holder also authorized and directed the U.S. Attorney not to seek the death penalty against Roland’s codefendants, Mark Williams, 32, and Malik Lowery, 33, who are each charged with one death penalty eligible murder. The defendants were indicted by a federal grand jury and arraigned on Dec. 20, 2012. They are detained without bail.
According to documents filed in this case:
The South Side Cartel, a sub-set of the Bloods street gang, operated primarily on Hawthorne Avenue in Newark since 2002. Originally a neighborhood-based gang whose main activities were selling drugs and committing violent acts to aid the drug trafficking business, many of the gang's members were officially brought into the Bloods gang in 2002 and 2003. As early as 2005, the gang was officially named “The South Side Cartel.” The gang’s center of activities were apartments located inside buildings dubbed “the Twin Towers,” located at 496-500 Hawthorne Avenue, the location of repeated narcotics and gun arrests by local law enforcement between 2002 and 2010. Many of the South Side Cartel members had tattoos showing these buildings and the logo of “SSC” representing the gang’s initials.
At its peak, the South Side Cartel had about 20 members or associates, many of whom have since been killed in gang-related murders or who are serving prison sentences in state and federal prisons for gang-related crimes. These defendants represent the last of the leadership of the gang. Co-founded by Amin and Farad Roland, between 2003 and 2010 the South Side Cartel was generally known among law enforcement and the FBI as the most violent street gang operating in Newark, committing numerous murders, shootings, robberies and other violent acts in furtherance of the enterprise.
The superseding indictment charges the defendants with their participation in a host of racketeering acts to further the South Side Cartel's goals, including: 1) the Dec. 4, 2003, murder of a rival gang member in a drive-by shooting; 2) the Feb. 23, 2005, murder of a fellow South Side Cartel member who was about to be arrested, in order to keep him from cooperating with law enforcement and implicating Farad Roland in a robbery/murder which took place a few days earlier; 3) the Oct. 20, 2007, murder of a fellow South Side Cartel member who had fallen into disfavor with the gang; and 4) the retaliation murders of two people on March 27, 2008, outside the Oasis Bar located on Lyons Avenue in Newark All the victims were shot to death.
The superseding indictment also charges the defendants with carjacking, assault with dangerous weapons in furtherance of racketeering for shootings of rival gang members and a conspiracy to distribute heroin and crack cocaine, among other charges.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Eric Welling; the Newark Police Department, under the direction of Police Director Eugene Venable and Police Chief Anthony Campos; and Acting Essex County Prosecutor Carolyn Murray, with the investigation leading to the charges in this case.The government is represented by Assistant U.S. Attorneys Robert Frazer and Andrew Bruck of the Organized Crime/Gangs Unit in Newark.
15-051
Defense counsel:
Farad Roland: Donna Newman, Esq. and Richard Jasper Esq.
Mark Williams: James Patton Esq., and Carl Herman Esq.
Malik Lowery: John Azzarello Esq. and Anthony Ricco, Esq.Four Members of Meth Conspiracy Sentenced to Federal PrisonRead the Press Release
Contact: Steve Young
Three men and one woman who conspired to distribute methamphetamine were sentenced to federal prison.
Three members of the conspiracy from Fort Dodge, Iowa - Robert Ackerman, 36; Shawn Owen, 37; Deidre Schlachter, 45; and Donald Smith, 42, from Huntington Beach, California, all plead guilty to conspiracy to distribute methamphetamine.
At their respective guilty plea hearings, each admitted their involvement in the conspiracy from about January 2009 and continuing through about December 2013 that distributed more than 500 grams of methamphetamine in the Fort Dodge, Iowa, area. Smith made arrangements to ship (mail) methamphetamine from California to Iowa to Owen, Schlachter, and Ackerman in exchange for cash being shipped (mailed) by Owens, Schlachter, and Ackerman to Smith in California. On April 25, 2013, law enforcement seized a Fed-Ex overnight envelope (in transit) from Smith to Schlachter. The Fed-Ex package contained 10.44 grams of 100% pure methamphetamine.
The defendants were sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Ackerman was sentenced to 35 months’ imprisonment; Owen was sentenced to 48 months’ imprisonment; Schlachter was sentenced to 33 months’ imprisonment; and Smith was sentenced to 120 months’ imprisonment. Each must pay a special assessment of $100. Each must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
All defendants are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Department of Narcotics Enforcement, Iowa Division of Criminal Investigation, Fort Dodge Police Department, Webster City Police Department, Webster County Sheriff’s Office, Hamilton County Sheriff’s Office, Hardin County Sheriff’s Office, and Iowa Falls Police Department.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 13-3055.
Follow us on Twitter @USAO_NDIA.
Former Salem, Virginia, Police Officer Sentenced to 30 Months in Prison for Soliciting Sexual Favors in Exchange for Potential Lenient TreatmentRead the Press Release
A former police officer employed by the City of Salem, Virginia, and assigned to a U.S. Drug Enforcement Administration (DEA) task force, was sentenced today to 30 months in prison for soliciting and receiving sexual favors from a cooperating defendant in exchange for agreeing to recommend a favorable sentence to a federal prosecutor on the defendant’s behalf.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Adam S. Lee of the FBI’s Richmond Division and Special Agent in Charge Michael Tompkins of the Department of Justice, Office of the Inspector General’s Washington Field Office made the announcement after the sentence was imposed by Chief U.S. District Judge Glen E. Conrad of the Western District of Virginia.
Kevin C. Moore, 42, of Roanoke, Virginia, pleaded guilty on Dec. 16, 2014, to one count of bribery.
According to his plea agreement and accompanying statement of facts, between June and September 2014, while Moore was serving as a DEA task force officer, Moore informed a female cooperating defendant that he was in a position to help her with her pending federal methamphetamine trafficking case. In August 2014, for example, in a series of text messages with the cooperating defendant, Moore made clear that he could recommend a favorable sentence to a prosecutor on the cooperating defendant’s behalf in exchange for sexual favors. Moore then convinced the cooperating defendant to go for a ride in his official vehicle where she performed a sexual act with Moore.
As part of his guilty plea, Moore also admitted to engaging in similar conduct with two other female cooperating witnesses in federal drug investigations dating back to 2009. According to the statement of facts, Moore falsely informed these witnesses that he had convinced federal prosecutors not to charge them with federal criminal offenses that would carry significant prison sentences. Moore then solicited and received sexual favors from the witnesses in exchange for his purported assistance.
Moore was arrested on Oct. 10, 2014, without incident, and was suspended from the police department and DEA task force the same day. Moore was terminated from his employment with the City of Salem Police Department after pleading guilty in this case.
This case was investigated by the FBI and the Justice Department’s Office of the Inspector General, and was prosecuted by Trial Attorneys Charles R. Walsh and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Former Court Officer for the 36th District CourtCharged with Extortion, Fraud and TheftRead the Press Release
An indictment was unsealed today charging a former court officer for the 36th District Court in Detroit with extortion, mail fraud and theft, announced U.S. Attorney Barbara L. McQuade.
Joining in the announcement was Michigan Attorney General Bill Schuette and Paul M. Abbate, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation.
Marlon Cleveland, 33, of Westland, was charged with misusing his position as a Court Officer for the 36th District Court to steal and extort thousands of dollars from defendants in civil cases over the course of more than a year. The crimes are alleged to have occurred in 2013 and 2014.
McQuade stated, “Anyone who abuses a position of trust to steal from our courts or to extort money from members of the public should expect to face serious penalties under the law.”
“We must weed out corruption at all levels of government to ensure the public is served,” said Michigan Attorney General Bill Schuette. “Nobody will get a free pass when they break the law.”
“Preventing the abuse of power to conduct criminal activity remains among the highest priorities of the FBI,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “FBI Detroit, in concert with the Michigan Attorney General’s Public Integrity Unit and the U.S. Attorney's Office, will continue to investigate these types of crimes and bring to justice those who abuse the public’s trust.”
This case was investigated by the Federal Bureau of Investigation in collaboration with the Michigan Attorney General's Public Integrity Unit.
An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government's burden to prove guilty beyond a reasonable doubt.
Florida Women Sentenced to 24 Months in Prison for LSU Health Sciences Center Bribery SchemeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Florida woman was sentenced to 24 months in prison for mail fraud in connection with a bribery scheme involving a former staff member at Louisiana State University Health Sciences Center (LSUHSC).
Rita M. Myler, 53, of Miramar Beach, Fla., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of mail fraud. She was also sentenced to three years of supervised release and ordered to pay $531,976.90 in restitution. According to the October 6, 2014, guilty plea, Myler paid kickbacks to LSUHSC’s Human Leukocyte Antigen (HLA) Laboratory Assistant Director Anthony Roggero so that he would continue buying products from her company, Sangre Biologicals. The kickbacks were mailed to Roggero’s house from July 2001 to July 2008. Sangre Biologicals received more than $500,000 from LSUHSC during the course of the scheme. The HLA laboratory played a critical support role for solid organ and bone marrow transplants.
Roggero, of Shreveport, pleaded guilty on October 31, 2012, to one count of mail fraud for his role in the scheme. He was sentenced on November 10, 2014, to 18 months in prison, three years of supervised release, and was ordered to pay $200,000 restitution.
The FBI conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Florida Man Sentenced to 5 Years Imprisonment for Structuring More Than $2.5 Million in Proceeds of Drug TraffickingRead the Press Release
FRESNO, Calif. — Chad Allen Riffle, 22, resident of Citrus Springs, Florida, was sentenced today by United States District Judge Lawrence J. O'Neill to 5 years in prison for structuring cash transactions, United States Attorney Benjamin B. Wagner announced.
According to court documents, Riffle and seven co-defendants opened and maintained bank accounts for the purpose of funneling cash proceeds of drug trafficking from Florida and other states back to California. Riffle made more than $2.5 million in cash deposits in amounts designed to avoid triggering financial institution reporting requirements.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorneys Grant B. Rabenn, Patrick R. Delahunty, and Jeffrey Spivak are prosecuting the case.
Federal Correctional Officer Sentenced on Bribery ChargesRead the Press Release
Contact Person: A. Bradley Parham (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Charlotte McLaughlin was sentenced in federal court in Florence, South Carolina, for Bribery, a violation of 18 U.S.C. § 201(b)(2)(C). United States District Judge R. Bryan Harwell of Florence sentenced McLaughlin to 13 months imprisonment and 3 years supervised release.
Evidence presented at the guilty plea hearing established that in 2012 and 2013, McLaughlin, who was a Federal Correctional Officer at the time, accepted bribes from inmates and their associates in exchange for which she brought contraband, tobacco and cellphones, to inmates at the Federal Correctional Institution in Bennettsville.
The case was investigated by agents of the Department of Justice, Office of Inspector General. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.Detroit man pleads guilty to heroin crimeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Darius Jerome Perry, 31, of Detroit, pleaded guilty to aiding and abetting possession of heroin with intent to distribute.
On Aug. 21, 2013, Huntington Violent Crimes and Drug Task Force agents executed a search warrant at a residence in the 200 block of 8th Ave. in Huntington. Perry admitted to utilizing the residence to distribute heroin. During the search, agents seized 134.8 grams of heroin and $10,431.76. Perry stated he jointly possessed the heroin with another man.
On Aug. 22, 2013, agents executed a second search warrant at the same residence, where they located and seized $3,000 concealed in a television. Perry stated the money seized during both searches was proceeds from heroin distributions.
Perry faces up to 40 years in federal prison and a $5 million fine. He is scheduled to be sentenced on May 11, 2015.
Chief United States District Judge Robert C. Chambers presided over the plea hearing.
The case is being investigated by the Huntington Violent Crimes and Drug Task Force. Assistant United States Attorney Joseph Adams is in charge of the prosecution.
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Crack Cocaine Dealer Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Sekou Howard, a/k/a Kou, 41, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute and distribution of 28 grams or more of crack cocaine, was sentenced to 147 months in prison by U.S. District Judge Frank P. Geraci, Jr. Howard was also ordered to forfeit two rounds of ammunition seized during the investigation.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Howard and his cousin James Hardaway, a/k/a Jabber, and others purchased large quantities of powder cocaine which was processed into crack cocaine, packaged, and resold in various quantities in Rochester. The defendant and Hardaway were arrested on January 16, 2014 following the execution of search warrants at 80 Ambrose Street and 153 Parkway in Rochester. During the searches, officers seized crack cocaine packaged for street sale, paraphernalia for weighing, processing and packaging narcotics, U.S. currency, and rounds of .38 caliber handgun ammunition.
Hardaway has been convicted and will be sentenced on March 9, 2015.
The sentencing is the culmination of an investigation on the part of the Rochester Police Department, under the direction of Chief Michael Ciminelli and the Federal Bureau of Investigation.
Construction Worker Sentenced to Federal Prison for Cocaine DeliveryRead the Press Release
Follow @SDILNewsA St. Charles, Missouri, resident was sentenced to federal prison for unlawful distribution of a controlled substance on February 6, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Charles Sweeny, 56, was sentenced to 57 months in federal prison, a $7,500 fine, a $100 special assessment, and three years of supervised release.
Sweeny was indicted on January 23, 2014, and pleaded guilty on August 28, 2014. The evidence established that Charles Sweeny worked as a construction worker for a man named David Ray, 55, of Fieldon, Illinois. Ray owned various construction businesses in the area and an investigation revealed that Sweeny was supplying Ray with cocaine. Agents arranged for two controlled purchases of cocaine to be made. The first resulted in the seizure of 126.5 grams of cocaine on March 9, 2012, when Sweeny personally delivered cocaine to an address in Jersey County, Illinois. The second controlled delivery was interrupted and Sweeny was caught while he was in the process of delivering cocaine to a Jersey County, Illinois, address. This second incident resulted in a seizure of 301.2 grams of cocaine, on April 17, 2012. During the investigation, agents also seized an additional 229.9 grams of cocaine that Sweeny had supplied to Ray. Sweeny was arrested after the second controlled delivery on April 17, 2012.
David Ray was separately prosecuted for unlawfully possessing firearms while being a user of cocaine. In addition, his various businesses were investigated and he was convicted for tax evasion for using his businesses to pay personal expenses, by vesting ownership of personal assets in the name of his businesses, and by filing false tax returns with the IRS or refusing to file a US Individual Tax Return all together. In tax years 2005-2010, Ray concealed income from the IRS for the purpose of limiting his tax liability resulting in him avoiding $1,272,904.83 in federal income taxes that he otherwise would have been required to pay. On December 22, 2014, David Ray was sentenced to 37 months in prison, a $7,500 fine, $1,272,904.83 in restitution, a $200 special assessment, and three years of supervised release. Ray also forfeited a gun collection valued between $75,000-$100,000.
The investigation was conducted by agents from the Internal Revenue Service / Criminal Investigations, the Jersey County Sheriff’s Department, the Bureau of Alcohol Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Community leaders collaborate to tackle drug abuse in North Central West VirginiaRead the Press Release
MORGANTOWN, WEST VIRGINIA – Community leaders in Monongalia, Marion, and Harrison Counties announced the formation of a working group to address drug addiction and overdoses in the region.
United States Attorney William J. Ihlenfeld, II, made the announcement along with officials from a variety of professions, including education, law enforcement, healthcare, treatment, and the news media. Ihlenfeld will serve as co-chair of the group, which will present an addiction action plan to the community in the spring.
“Addiction has grabbed ahold of communities in North Central West Virginia and we’re committed to pursuing innovative and tangible ways to loosen that grip,” stated Ihlenfeld. “The number of heroin overdose deaths in West Virginia continues to rise and this has become more than just a law enforcement problem – it’s a true public health crisis.”
The working group is part of the United States Attorney’s Addiction Action Plan, a program designed to target drug abuse by capitalizing on synergies created by bringing together leaders from fields relevant to the issue. The goals of the group include decreasing heroin use, promoting increased access to quality substance abuse treatment, choking off the supply of heroin to the region, and making North Central West Virginia stronger, safer, and healthier.
The subcommittees that comprise the Addiction Action Plan will be led by a diverse group of leaders from North Central West Virginia, including:
• Dr. Carl “Rolly” Sullivan, MD • Director, Addictions Program, WVU School of Medicine
• Dr. James Berry, MD • Director, Inpatient Addiction Services, WVU Health Sciences Center
• Dr. Patrick Ryan • Director of Behavioral Medicine, Fairmont General Hospital
• Dr. Frank Devono • Superintendent, Monongalia County Schools
• Aaron Williams • News Director, WBOY-TV
• John Miller • Executive Editor, The Clarksburg Exponent Telegram
• Barbara Evans Fleischauer • Representative, W.Va. House of Delegates
• Edward Preston • Chief, Morgantown Police Department
• Kelley Moran • Chief, Fairmont Police Department
• Louis Ortenzio • Senior Ministry Leader, Celebrate Recovery
• Jo Anne McNemar • Harrison County Prevention Partnership
• Ted Offutt • Marion County Day Report Center Director
“Public comments at the recent town hall meeting at Bridgeport High School in Harrison County made it very clear that now is the time for swift action,” said Ihlenfeld. “I’m confident that the working group that we’ve formed will develop an inventive and comprehensive approach to combat addiction in the region.”Individuals interested in obtaining additional information on the Addiction Action Plan are encouraged to contact the United States Attorney’s Office for the Northern District of West Virginia at (304) 234-0100. Regular updates on the progress of the Addiction Action Plan will be available via the official Twitter feed of the U.S. Attorney’s Office, @NDWVnews.
Chelsea Woman Pleads Guilty to Being an Accessory After the Fact to a Pharmacy RobberyRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Nicole A. Breton, 21, of Chelsea, Maine pleaded guilty today in U.S. District Court to being an accessory after the fact to a pharmacy robbery. An accessory after the fact is a person who, knowing that an offense against the United States has been committed, comforts or assists the offender in order to hinder or prevent his apprehension, trial or punishment.
Court records show that on September 2, 2014, Dominic J. Pomerleau robbed the Rite Aid Pharmacy located on Hospital Street in Augusta, Maine. He approached the pharmacy counter with a note that demanded oxycodone and absconded with three bottles of oxycodone. Breton was waiting for Pomerleau in a getaway car. She emptied the pills from the bottles and threw the empty bottles and caps out of the car window. Pomerleau, Breton, and the driver of the car fled to Breton’s residence where they spent the night consuming many of the stolen oxycodone pills. Pomerleau pled guilty to pharmacy robbery on January 23, 2015 and awaits sentencing.
Breton faces up to 10 years in prison, a $125,000 fine and restitution. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Augusta Police Department and the Federal Bureau of Investigation.
Charlotte Man Sentenced to More Than Five Years in Prison for Defrauding Investor in Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced John Reid Perkins, 45, of Charlotte, to serve 64 months in prison followed by three years of supervised release on securities fraud conspiracy charges and for violating the terms of his supervised release stemming from a previous federal conviction, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Perkins, who pleaded guilty in September 2013 to one count of securities fraud conspiracy, was also ordered to pay $805,150 as restitution.
Perkins’ conspirator, Terry Wayne Gandy, 51, or Myrtle Beach, S.C. was sentenced in December 2014 to 57 months in prison and three years of supervised release for his role in the conspiracy and was ordered to pay $3,076,411.34 in restitution to his victims.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) and B.W. Colier, Acting Director of the North Carolina State Bureau of Investigation (SBI) join U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and court proceedings, from 2006 to 2008 Perkins conspired with Gandy and others and tricked victims into investing in a fraudulent real estate investment scheme. Court records show that Perkins owned and operated “Master Home Solutions” (“MHS”), a company that purportedly purchased, remodeled, renovated and resold foreclosed homes. Based on court records, Perkins induced victims by falsely representing their money would be invested in real estate projects through MHS, when, in fact, very little of that money was ever invested. Instead of investing the investors’ money as promised, Perkins, Gandy and others used the funds to pay themselves and to support their lifestyles, including to pay bills, buy cars, and make large cash withdrawals.
According to court documents and court proceedings, the conspirators also used some of the victim’s money to pay purported “profits” to other investors, falsely characterizing them as “gains on investments.” Perkins and his conspirators also used new victims’ money to make payments to old victim-investors, commonly known as “Ponzi” payments. Court records indicate that Perkins and his conspirators further lied to victims, falsely telling them their money was tied up in investments with specific “maturity periods.” In some instances, the defendants advised victims that additional investment funds were needed in order to secure the return of the victims’ original investment, court records indicate.
In handing down the 64 month sentence, Judge Cogburn stressed the significant damage caused to victims by Perkins’ greed and noted that the lengthy sentence was needed to protect the public from futures crimes of the defendant.
In 2007, Perkins was convicted on federal conspiracy, identification document fraud, wire fraud and aggravated identity theft charges and served 33 months in prison. Perkins began a five-year period of supervised release in November 2010. Judge Cogburn revoked Perkins’ supervised release because Perkins violated several of his conditions by, among other things, engaging in unauthorized travel and defrauding a victim of approximately $125,000 in a sham tugboat sale. Perkins was remanded into federal custody following the sentencing hearing. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI, IRS and SBI. Assistant United States Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Buffalo Woman Sentenced for Conspiracy to Defraud the IrsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5836
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Keianna A. Jones, 29, of Buffalo, NY, who was convicted of conspiracy to defraud the Internal Revenue Service, was sentenced to time served, one year supervised release and ordered to pay restitution totaling $54,316.00 by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that the defendant conspired with others to submit false claims for income tax refunds. Blank W-2 forms were obtained from local business establishments for use in committing this fraud. Jones also had others obtain legitimate W-2 forms from actual employers and then altered the forms to create new W-2s by changing income and withholding information so as to maximize the refund to be obtained. In working with others, a portion of the refund received would go to the defendant.
Co-defendant Dominique Taylor, 29, of Buffalo, NY, was also convicted of conspiracy to defraud the Internal Revenue Service.
The sentencing is the result of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division under the direction of Special Agent-In-Charge, Shantelle P. Kitchen.
Bakersfield Resident Sentenced to 5-year Prison Term for Growing Marijuana on Ecological ReserveRead the Press Release
FRESNO, Calif. — Cruz Soria, 29, of Bakersfield, California was sentenced today to 5 years in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in the Fay Canyon area of the Canebrake Ecological Reserve, U.S. Attorney Benjamin B. Wagner announced. Soria was also ordered to pay $2,568.85 in restitution to the High Sierra Trail Volunteer Crew for the cost of cleaning up the grow site.
The Canebrake Ecological Reserve is located 10 miles east of Lake Isabella in northeastern Kern County. It was first inhabited in about 1000 B.C. by the Tubatulabel culture and is currently home to numerous rare and protected plants and animals, including the federally-protected golden and bald eagles and peregrine falcon, the federally-threatened California red-legged frog and Valley elderberry longhorn beetle, and the endangered Southwestern willow flycatcher.
Soria’s sentence follows his guilty plea last year. In pleading guilty, Soria acknowledged he was responsible for cultivating 454 marijuana plants in the ecological reserve. Law enforcement officers arrested Soria at the grow site and seized the plants, about twelve pounds of processed marijuana, and a firearm. The officers also found several highly toxic chemicals, including Fosfuro de Zinc or zinc phosphide, a rat poison illegal to use in the United States without a license, and Furadan, an insecticide banned by the EPA for usage on crops consumed by humans. Dead coyote, snakes and other animals were found at the grow site. Upon completion of his prison sentence, Soria will be supervised by the U.S. Probation Office for 4 more years.
This case is the product of an investigation by the U.S. Forest Service, U.S. Department of Homeland Security - Homeland Security Investigations (HSI), California Department of Fish and Game, and Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.BGF Leader Tavon White Sentenced to 12 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Tavon White, a/k/a Bulldog and Tay, age 37, of Baltimore, today to 12 years in prison followed by three years of supervised release for racketeering conspiracy arising from his running of operations of the Black Guerilla Family (BGF) gang inside the Baltimore City Detention Center (BCDC).
In connection with his federal guilty plea, White also pleaded guilty to a state charge of attempted murder, for which he received a sentence of 20 years in prison, served concurrent to his federal sentence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS); Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Marilyn Mosby.
This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. Investigations are continuing.
According to court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to his plea agreement, White has been a member of the BGF since 2000 and was in pretrial custody at BCDC from 2009 to 2013. He became the lieutenant commander of the BGF at BCDC and then the commander in 2011. Throughout his years at BCDC, White was involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (CO’s), who received payments, gifts or a share of the profits. Fellow BGF inmates and co-defendants also directed smuggling and often worked in concert with White.
White admitted that he was personally involved in sexual relationships with and impregnated four CO’s. Outside the prison facility, White and his closest BGF allies frequently used other people, including several co-defendants, to obtain contraband, hold it or deliver it to correctional officers for smuggling.
Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers. Thirty-five defendants pleaded guilty; eight defendants went to trial and one defendant has died.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who prosecuted this Organized Crime Drug Enforcement Task Force case.