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Thursday 5 February 2015
Ross Ulbricht, the Creator and Owner of the “Silk Road” Website, Found Guilty in Manhattan Federal Court on All CountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ROSS WILLIAM ULBRICHT, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” a/k/a “Silk Road,” was found guilty yesterday on all seven counts in connection with his operation and ownership of Silk Road, a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement, following a four-week trial before U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury has found, Ross William Ulbricht operated Silk Road – a clandestine global marketplace that offered buyers and sellers of illegal goods and services a promise of anonymity. Ulbricht built this black market bazaar to exploit the dark web and the digital currency Bitcoin to allow users to conduct illegal business beyond the reach of law enforcement. Ulbricht’s arrest and conviction – and our seizure of millions of dollars of Silk Road Bitcoins – should send a clear message to anyone else attempting to operate an online criminal enterprise. The supposed anonymity of the dark web is not a protective shield from arrest and prosecution.”
According to the Complaint, the Superseding Indictment, and the evidence presented at trial:
ULBRICHT created Silk Road in approximately January 2011, and owned and operated the underground website until it was shut down by law enforcement authorities in October 2013. Silk Road emerged as the most sophisticated and extensive criminal marketplace on the Internet, serving as a sprawling black-market bazaar where unlawful goods and services, including illegal drugs of virtually all varieties, were bought and sold regularly by the site’s users. While in operation, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other unlawful goods and services to well over a hundred thousand buyers, and to launder hundreds of millions of dollars deriving from these unlawful transactions.
ULBRICHT deliberately operated Silk Road as an online criminal marketplace intended to enable its users to buy and sell drugs and other illegal goods and services anonymously and outside the reach of law enforcement. ULBRICHT sought to anonymize transactions on Silk Road in two principal ways. First, ULBRICHT operated Silk Road on what is known as “The Onion Router,” or “Tor” network, a special network of computers on the Internet, distributed around the world, designed to conceal the true IP addresses of the computers on the network and thereby the identities of the networks’ users. Second, ULBRICHT designed Silk Road to include a Bitcoin-based payment system that served to facilitate the illegal commerce conducted on the site, including by concealing the identities and locations of the users transmitting and receiving funds through the site.
The vast majority of items for sale on Silk Road were illegal drugs, which were openly advertised as such on the site. As of September 23, 2013, Silk Road had nearly 13,000 listings for controlled substances, listed under such categories as “Cannabis,” “Dissociatives,” “Ecstasy,” “Intoxicants,” “Opioids,” “Precursors,” “Prescription,” “Psychedelics,” and “Stimulants.” From November 2011 to September 2013, law enforcement agents made more than 60 individual undercover purchases of controlled substances from Silk Road vendors. These purchases included heroin, cocaine, ecstasy, and LSD, among other illegal drugs, and were filled by vendors believed to be located in more than ten different countries, including the United States, Germany, the Netherlands, Canada, the United Kingdom, Spain, Ireland, Italy, Austria and France.
In addition to illegal narcotics, other illicit goods and services were openly bought and sold on Silk Road as well. For example, as of September 23, 2013, there were: 159 listings under the category “Services,” most of which offered computer hacking services, such as a listing by a vendor offering to hack into social networking accounts of the customer’s choosing; 801 listings under the category “Digital goods,” including malicious software, hacked accounts at various online services, and pirated media content; and 169 listings under the category “Forgeries,” including offers to produce fake driver’s licenses, passports, Social Security cards, utility bills, credit card statements, car insurance records, and other forms of false identification documents.
Using the online moniker “Dread Pirate Roberts,” or “DPR,” ULBRICHT controlled and oversaw every aspect of Silk Road, and managed a staff of paid, online administrators and computer programmers who assisted with the day-to-day operation of the site. Through his ownership and operation of Silk Road, ULBRICHT reaped commissions worth over $13 million generated from the illicit sales conducted through the site. ULBRICHT also demonstrated a willingness to use violence to protect his criminal enterprise and the anonymity of its users. ULBRICHT even solicited six murders-for-hire in connection with operating the site, although there is no evidence that these murders were actually carried out.
ULBRICHT, 30, of San Francisco, California, was found guilty of: one count of distributing narcotics, one count of distributing narcotics by means of the Internet, and one count of conspiring to distribute narcotics, each of which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years; one count of engaging in a continuing criminal enterprise, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 20 years in prison; one of count of conspiring to commit computer hacking, which carries a maximum sentence of five years in prison; one count of conspiring to traffic in false identity documents, which carries a maximum sentence of 15 years; and one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum sentences are prescribed by Congress and are provided for informational purposes only, as the sentence will be determined by the judge. ULBRICHT is scheduled to be sentenced on May 15, 2015.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation and its New York Special Operations and Cyber Division, as well as the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the IRS, the New York City Police Department, U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), the New York State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Marshals Service, Office of Foreign Assets Control, and NY Department of Taxation. Mr. Bharara also thanked the ICE-HSI Chicago-O’Hare office for its assistance and support, as well as the Department of Justice’s Computer Crime and Intellectual Property Section and Office of International Affairs. Additionally, Mr. Bharara praised the foreign law enforcement partners whose contributions to the success of the investigation and prosecution have been invaluable, namely, the Reykjavik Metropolitan Police of the Republic of Iceland, and the French Republic’s Central Office for the Fight Against Crime Linked to Information Technology and Communication.
Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Serrin Turner and Timothy Howard are in charge of the prosecution, and Assistant United States Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
Roseville Couple Plead Guilty to Loan Modification and Foreclosure Rescue Scam That Targeted Spanish-Speaking CommunityRead the Press Release
SACRAMENTO, Calif. —Martin Wayne Flanders, 50, formerly of Roseville, and Ligia Sandoval Spafford, 48, of Roseville, pleaded guilty today to mail fraud for their participation in a fraud scheme that targeted distressed homeowners, United States Attorney Benjamin B. Wagner announced.
According to court documents, between 2008 and 2010, Flanders charged clients advance fees in exchange for a number of financial services, including loan modifications, mortgage loan audits, credit repair, debt relief, bankruptcy filings, and a program to sell homes to “investors” with a rent-to-own option. Flanders and Sandoval marketed these services to economically distressed homeowners with particular emphasis on those who were Spanish-speakers. During a radio program aired twice weekly by a Bay Area Spanish-language Christian radio station, Radio Luz, Sandoval promoted the services she and Flanders offered. Flanders also advertised on a Spanish-language television station, Univision, and in Spanish-language magazines. About 98 percent of the defendants’ clients were of Hispanic descent, some of whom spoke little to no English. Sandoval speaks Spanish; Flanders does not.
Flanders and Sandoval made numerous false statements to investors as to the success of the programs being offered or refunds that would be available if the programs were not successful. “Ghost offers” – i.e., fictitious offers to purchase the victim’s property through short sale – and “skeleton bankruptcies” – i.e., sham bankruptcy petitions that were quickly dismissed by the bankruptcy court – were also used by Flanders or Sandoval to try to stall the foreclosure process. At least 25 to 30 individuals paid for services and did not receive them or did not receive refunds when the programs failed to deliver as promised. The total loss to the victims is at least $120,000. Some homeowners who were not able to obtain relief were foreclosed upon by their lenders.
“Flanders and Sandoval took advantage of victims with limited English proficiency, when those victims were most financially vulnerable,” said United States Attorney Wagner. “Predatory fraud schemes of this sort have been, and will continue to be, a prime focus of our efforts to prosecute mortgage fraud.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
Flanders has been detained since his arrest in October 2012. Sandoval is currently out of custody.
Flanders and Sandoval are scheduled to be sentenced by United States District Judge Troy L. Nunley on June 11, 2015. Flanders and Sandoval face a maximum statutory penalty of 20 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.
Rodney M. Kidd Charged with Military Housing Allowance FraudRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Rodney M. Kidd, age 29, stationed on board Andersen Air Force Base, Guam, has been indicted by a federal grand jury on February 4, 2015, with two counts of theft of government money (18 U.S.C. § 641), one count of fraudulent claim against the United States (18 U.S.C. § 287), and one count of false statement to a federal government agency (18 U.S.C. § 1001). For each count of theft of government money, the maximum sentence under the statute is 10 years in prison and a $250,000 fine. For each count of fraudulent claim against the United States and each count of false statement to a federal government agency, the maximum sentence under the statute is 5 years in prison and a $250,000 fine. A summons was issued for Kidd to appear in federal court on February 18, 2015, for his arraignment.
The indictment alleges that from October 1, 2012 through April 30, 2013, Kidd, an active duty Staff Sergeant in the U.S. Air Force, knowingly stole about $19,645.15 in Overseas Housing Allowance funds from the Defense Finance and Accounting Service (DFAS), a Department of Defense agency that pays military service members.
Military members who are active duty or activated reservists or activated National Guardsmen are eligible to receive a tax-free housing allowance known as Overseas Housing Allowance (OHA). The amount of OHA compensation that an active duty military member can receive is determined by the actual amount of money the individual is paying for housing costs, up to a maximum amount determined by the individual’s rank and whether or not the individual has dependents. If a military member is sharing his residence with another military member, then the amount of OHA distributed to that person would be cut in half.
According to the indictment, from October 1, 2012 through April 30, 2013, Kidd secretly shared his residence with another Air Force Staff Sergeant. According to forms he signed and briefs he heard, Kidd knew that he was only entitled to be reimbursed for $1,100 of his $2,200 monthly rent, yet he kept the additional amounts. Kidd received tax-free reimbursement for his fraudulent rental payments as well as tax-free reimbursements for utility expenses, which totaled approximately $19,645.15.
The indictment further alleges that on May 13, 2013, Kidd knowingly submitted false OHA documentation to DFAS that falsely claimed that Kidd and another active duty Air Force Staff Sergeant paid a total of $4,400 in rent every month for their occupancy of their residence in Dededo. Relying on the OHA documentation Kidd submitted, DFAS paid tax-free OHA reimbursement for the $2,200 he supposedly paid for his share of the rent every month. In reality, Kidd and the other Staff Sergeant had a secret arrangement with their landlord to pay a significantly reduced amount of rent each month so that they could each pocket the remaining OHA payments.
The indictment further alleges that from May 1, 2013 through May 31, 2014, Kidd received tax-free reimbursement for his fraudulent rental payments as well as tax-free reimbursements for utility expenses, which totaled approximately $35,136.60. To corroborate this OHA claim, Kidd presented a false lease agreement to DFAS that falsely stated that Kidd paid $2,200.00 every month in rent for his occupancy of this Dededo residence. The total amount of OHA payments Kidd fraudulently received was $54,781.75.
This case is the result of an investigation conducted by the Air Force Office of Special Investigations. The prosecution is being handled by Special Assistant U.S. Attorney Kurt Grunawalt.
The charges in the Indictment are only allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rockford Man Pleads Guilty to Fraud Involving More Than $500,000 in Fictitious Money OrdersRead the Press Release
ROCKFORD — A Rockford, Ill. man pleaded guilty today before U.S. District Judge Frederick J. Kapala for producing a fictitious financial instrument that appeared to be issued under the authority of the U.S. Treasury. In pleading guilty, BRADLEY SHERMAN HAMPTON, 55, admitted that on Aug. 31, 2009, he created a fictitious $48,780 money order in an attempt to defraud Regions Bank and the U.S. Treasury.
According to the written plea agreement, Hampton also admitted that in 2009 he produced eight other fictitious money orders in an attempt to defraud. The nine fictitious money orders totaled $547,578.47 and purported to be issued under the authority of a Federal Reserve Bank, the Department of the Treasury, or the United States Treasury. The fictitious money orders were made payable to Chase Home Finance, Chase National Payment Service, Holcomb State Bank, Regency Worldwide Development, Inc., Harley Davidson Credit, and the Faith Center in Rockford, Ill.
Producing a fictitious financial instrument carries a penalty of up to 25 years in prison, up to 5 years of supervised release following imprisonment, and a maximum fine of either $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution. Sentencing for Hampton is set for June 1, 2015, at 9:00 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Frank Benedetto, Special Agent-in-Charge of the Secret Service’s Chicago Field Office.
The government is being represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Richmond Man Sentenced in Multi-Year Multi-State Bank Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Reginald L. Thomas, 39, of Richmond was sentenced today by Chief United States District Judge Morrison C. England, Jr. to 45 months in prison for Conspiracy to Commit Bank Fraud and Aggravated Identity Theft, United States Attorney Benjamin B. Wagner announced.
According to evidence presented at a December trial, from March 2008 until July 2010, Thomas and co-conspirator Deshawn Ray conducted what was described as a multi-state “account takeover” scheme that targeted high-value accounts at several banks. Members of the conspiracy used the personal information of high-value account holders to open a joint account in the names of the high-value account holders and a co-conspirator. The defendants also changed the contact information for the high-value accounts so that the actual account holders would not receive notice of account activity. The defendants then transferred funds from the high-value accounts to the joint accounts and then to individual accounts held by a member of the conspiracy. Members of the conspiracy withdrew the proceeds of the fraudulent transfers in cash, cashiers’ checks or wire transfers before the transfers were noticed by the banks and reversed.
This case was the product of an investigation by the United States Secret Service, the Pinellas County (Florida) Sheriff’s Office, and the Walnut Creek (California) Police Department. Assistant United States Attorneys Matthew G. Morris and Brian A. Fogerty are prosecuting the case.
Co-defendant Damian Edgerson, 39, of Oakland, previously pled guilty to bank fraud. He was sentenced to serve 18 months in prison. Co-defendant Tiffany Tung, 26, of Oakland pled guilty to Accepting a Bribe as a Bank Employee. Tung is scheduled to be sentenced in May 2015. She faces a maximum statutory penalty of 1 year in prison and a $100,000 fine. Co-defendant Deshawn Ray is scheduled to appear before Chief Judge England on February 12, 2015 for a hearing on the schedule for sentencing. Ray faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine for his bank fraud convictions, and a mandatory 2 year consecutive prison term for his conviction for Aggravated Identity Theft. The actual sentences for both Tung and Ray 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.
Rhea County Woman Sentenced to Eleven Years and Six Months for Manufacturing Methamphetimine in Home with Five ChildrenRead the Press Release
Misty Angel has two prior state felony convictions for the same conduct
CHATTANOOGA, Tenn. - Misty Angel, 36, of Dayton, Tenn., was sentenced to serve 138 months in prison by the Honorable Curtis L. Collier, U.S. District Judge. Angel pleaded guilty in April 2014 to a federal indictment charging her with manufacturing methamphetamine.
According to the information on file with the U.S. District Court, in October 2013, after receiving complaints of methamphetamine activity, officers from the Rhea County Sheriff’s Department responded to Angel’s residence and caught her in the process of making methamphetamine using the “one-pot” method. The “one-pot” methamphetamine manufacturing process is inherently dangerous, involving several toxic, flammable, and explosive chemicals. She was high on methamphetamine at the time and heating a “one-pot” methamphetamine laboratory with a hair dryer, creating further danger. Chemicals and equipment used in the manufacturing process were found inside and outside the residence and officers encountered a strong chemical odor when they approached the trailer. Five children, ages 17, 14, 13, 12, and 4 years old, were present and were taken to the Rhea County Medical Center for decontamination. Tennessee Department of Children’s Services removed the children from the home.
Angel was classified as a “career offender” under federal law because she had two prior drug felony convictions, both involving methamphetamine and both involving her prior manufacture of the drug in the presence of her children. Her federal sentence reflected her prior state convictions and the substantial risk of harm that her conduct posed to her children. Judge Collier also recommended that Angel participate in a drug treatment program while she is in prison.
The indictment and subsequent conviction of Angel was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms, Rhea County Sheriff’s Department, Tennessee Methamphetamine and Pharmaceutical Task Force, and Tennessee Department of Children’s Services. Assistant U.S. Attorney Gregg L. Sullivan represented the United States
Retired Army Veteran Charged with Threatening to Shoot Others at the Washington D.C. Capitol BuildingRead the Press Release
Greenbelt, Maryland – Michael Bogoslavski, age 33, of Cheverly, Maryland, was charged by complaint with transmitting in interstate commerce a communication containing a threat to injure another person. The complaint was filed on February 3, 2015, and unsealed yesterday. A detention hearing was held late yesterday afternoon and Bogoslavski was ordered to be detained pending trial.
The complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief Kim Dine of the U.S. Capitol Police; Chief H. Buddy Robshaw of the Cheverly Police Department; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“Local and federal law enforcement agencies responded to the threat quickly and effectively,” said U.S. Attorney Rod J. Rosenstein. “Their efforts in this case may have prevented a tragic outcome.”
“With the help of the Threats of Mass Violence state law passed last year, my office was able to work with Cheverly Police to detain Mr. Bogoslavski and obtain a warrant which led to the removal of firearms from his home,” said Prince George’s County State’s Attorney Angela D. Alsobrooks. “I want to thank all of our law enforcement partners for their quick actions that removed Mr. Bogoslavski from our community and may have prevented a tragedy.”
According to the affidavit supporting the complaint, on February 2, 2015, a federal employee who worked in the U.S. Capitol Building reported to U.S. Capitol Police that earlier in the day, the employee had received text messages from Bogoslavski stating that he was planning to come to the employee’s work place with guns and shoot the employee and others. While the employee was speaking with the Capitol Police, Bogoslavski called the employee’s cell phone and made additional threats to shoot others, and “to die suicide by cop.”
The affidavit alleges that the Capitol Police alerted law enforcement to locate Bogoslavski. The Cheverly Police Department responded to Bogoslavski’s residence where they took him into custody. Bogoslavski was taken to a hospital and released the next day, whereupon he was arrested and detained in federal custody.
A search warrant was executed on February 2 at Bogoslavski’s home. Two loaded handguns were seized, along with additional rounds of ammunition. Further investigation revealed that after serving in the U.S. Army for over nine years, including two tours in Iraq and a tour in Afghanistan, Bogoslavski was released from duty. He retired in March, 2013.
Bogoslavski faces a maximum sentence of five years in prison followed by three years of supervised release and a $250,000 fine.
A complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the U.S. Capitol Police, Cheverly Police Department, FBI, Prince George’s County State’s Attorney’s Office and Prince George’s County Police Department for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Daniel C. Gardner and Special Assistant United States Attorney Nicholas J. Patterson, of the U.S. Department of Justice, National Security Division, who are prosecuting the case.
Rapid City Woman Pleads Not Guilty to Money Order FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, woman has been indicted by a federal grand jury for Money Order Fraud.
Eden Tawiah, a/k/a Eden Rosales, a/k/a Eden Holt, age 31, was indicted on January 21, 2015. She appeared before U.S. Magistrate Judge Veronica L. Duffy on January 29, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Tawiah knowingly passing fraudulent money orders in the District of South Dakota in September of 2014.
The charge is merely an accusation and Tawiah is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Postal Inspection Service. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Tawiah was released on bond pending trial. A trial date has been set for April 7, 2015.
Pine Ridge Man Indicted for Assault with Intent to Commit MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Assault with Intent to Commit Murder, Use of a Firearm during a Crime of Violence, and Assault with a Dangerous Weapon.
Jourdan Brown, age 18, was indicted on January 21, 2015. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 23, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 2 years of supervised release, and $100 to the Federal Crime Victims Fund for each charge. Restitution may also be ordered.
The charges relate to Brown using a baseball bat to assault another man on January 14, 2015, at Pine Ridge, and shooting through the front window of the victim’s house later that same day.
The charges are merely accusations and Brown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Brown was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for March 31, 2015.
Northwest Arkansas Man Sentenced to over Nine Years for Drug Trafficking OffenseRead the Press Release
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Joe Chantharath, aka “Joe Psycho”, aka “Psycho”, age 32, of Springdale, Arkansas, was sentenced today on one count of Distribution of Methamphetamine. Chatharath was sentenced to 116 months in prison followed by three years of supervised release. The Honorable Timothy L. Brooks presided over the sentencing in the United States District Court in Fayetteville.
U.S. Attorney Eldridge commented, “We will not waver in our commitment to prosecuting individuals involved in the trafficking of illegal drugs in Northwest Arkansas and across the Western District. With the continued cooperation of local, state, and federal law enforcement, we will work to ensure those who choose to participate in this type of illegal activity are held accountable so that Arkansans can be confident that our communities are safe.”
On five occasions in May 2014, as part of an ongoing investigation, agents with the Drug Enforcement Administration (DEA) Task Force arranged for controlled purchases of methamphetamine from Chantharath. The collective weight of methamphetamine of purchased on these five occasions was approximately 85 grams. On May 23, 2014, agents of the DEA, Rogers Police Department and Springdale Police Department served a search warrant on the defendant’s residence. During the service of the search warrant, the defendant was arrested and found to be in possession of approximately 12 grams of methamphetamine, over $2,500 in cash attributable to the sales of controlled substances, and five firearms. Chantharath was indicted for this conduct on June 25, 2014, and pleaded guilty to one count of Distribution of Methamphetamine on October 17, 2014.
This case was investigated by the Drug Enforcement Administration, the Rogers Police Department and the Springdale Police Department. Assistant United States Attorney Brandon Carter prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Nixa Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Michael Wunderlee, 41, of Nixa, was sentenced by U.S. District Judge M. Douglas Harpool to 11 years and nine months in federal prison without parole. The court also sentenced Wunderlee to 10 years of supervised release following incarceration.
Wunderlee, who pleaded guilty on Sept. 8, 2014, admitted that he received and distributed child pornography over the Internet between May 13, 2010, and Feb. 25, 2012.
Federal agents from the National Park Service and the FBI executed a search warrant at Wunderlee’s residence as part of an investigation into another person’s use of a stolen government credit card number of a National Park Service employee. Wunderlee’s computer was seized and transported for forensic examination, which found approximately 139 videos and approximately 23 images of child pornography, including pre-pubescent victims.
Wunderlee admitted that he used file-sharing software to download the images and videos. The software automatically saved the downloaded images and videos to a share folder on his computer and made them available to be downloaded by others using the program.
Wunderlee was arrested on Sept. 30, 2013, and released on bond on Nov. 22, 2013, which included home detention and location monitoring. However, on or about Feb. 28, 2014, in order to avoid prosecution, Wunderlee absconded after cashing out his retirement account at Cox Hospital and leaving a note indicating he intended to commit suicide. On Aug. 6, 2014, FBI agents arrested Wunderlee at a home in Spotsylvania, Va.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI and the National Park Service.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Nine Arrested During Online Solicitation Investigation Face Federal ChargesRead the Press Release
AMARILLO, Texas — Nine men who were arrested this past weekend during a multi-agency investigation into online solicitation now face federal charges, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Each of the following defendants has been charged in a separate federal complaint, just unsealed, with attempted enticement of a child. Each made his initial appearance in federal court yesterday before U.S. Magistrate Judge Clinton E. Averitte.
Aaron Joe Davis, 38
Jeffery Robert Abraham, 31
Kolby Shelb Kemp, 21
Mario Simental, 27
Brad Eugene Sharber, 44
Daniel Lee Garcia, 37
Robert James Tidwell, 20
Charles Alexander Diaz, 20
Kyle Andrew Adair, 22
All are residents of Amarillo, Texas, with the exception of defendant Tidwell, who is a Pampa, Texas, resident.
According to the complaints filed, at some time during the period January 29, 2015, and Jan 31, 2015, the defendants communicated via email and/or text messaging with an individual they believed to be 14 years-of-age. In all but one case, the defendant believed the 14-year-old was female. In at least one incident, the defendant sent a sexually explicit photograph to the individual they believed to be 14-years-old. In all instances, a meeting time and place was arranged, and in all but two instances, the defendant was arrested at the location. Defendant Davis was arrested after fleeing and leading officers and agents on a vehicle pursuit through Amarillo. Defendant Garcia was arrested after leading officers and agents on a brief foot chase.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The statutory penalty for the offense as charged is not less than 10 years and up to life in federal prison, a $250,000 fine and up to a lifetime of supervised release. The government has 30 days to present the case to a federal grand jury for indictment.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Texas Department of Public Safety, the Amarillo Police Department, Randall County Sheriff’s Department, Potter County Sheriff’s Department, West Texas A&M Police Department, Canyon Police Department, the Amarillo and Randall County District Attorney’s Offices, and the U.S. Marshals Service are investigating. Assistant U.S. Attorneys Joshua Frausto and Tim Hammer are in charge of the prosecution.
Nigerian Woman Arrested; Charged with Improper Use of A PassportRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul. Jr. announced today that Elizabeth Afola Oyenekan, 42, of Nigeria, was arrested and charged by criminal complaint with the improper use of another’s passport and making false statements. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaint, the defendant attempted to enter the United States at the Peace Bridge Port of Entry on February 1, 2015. Oyenekan presented a Canadian passport to a Customs and Border Protection Officer bearing the name Diana Adetuni. When asked where she was born, Oyenekan stated Nigeria but quickly retracted and claimed she was born in Saint Vincent. The defendant also told the officer she was traveling to Brooklyn, NY to stay with a friend.
A search of the defendant’s luggage revealed a credit card in the name of E. O. Oyenekan which was a possible match to a previous Visa Waiver Refusal in Ireland in October 2014. An officer then entered the defendant’s fingerprints into a Fingerprint Identification System and determined that she was in fact Elizabeth Afola Oyenekan and not Diana Adetuni.
The defendant made an initial appearance this morning before U.S. Magistriate Judge H. Kenneth Schroeder. Oyenekan is being held.
The arrest and criminal complaint are the culmination of an investigation on the part of Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.
New Haven Man Pleads Guilty to Possessing Stolen FirearmRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PAUL BURRUS, 44, of New Haven, waived his right to indictment and pleaded guilty yesterday in New Haven federal court to one count of possession of a stolen firearm.
According to court documents and statements made in court, on September 5, 2014, a New Haven Police officer stopped a car in which BURRUS was a passenger in the area of West Ivy Street. As the officer approached the car, he observed BURRUS appear to be hiding or moving something under the front passenger seat. After the officer ordered BURRUS out of the car, he found a loaded Smith and Wesson M & P .45 caliber semi-automatic pistol under the passenger seat.
The firearm had been reported stolen in East Haven in August 2011. BURRUS has admitted that that he purchased the firearm and ammunition for $500, and that he had reason to believe that the firearm had been stolen.
BURRUS is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on May 12, 2015, at which time he faces a maximum term of imprisonment of 10 years.
The matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department and is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Jennifer Laraia.
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[email protected]Monroe County Man Sentenced to Six Years in Prison for Crack Cocaine TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 35-year-old Stroudsburg area man was sentenced to six years in prison by United States District Court Judge Robert D. Mariani for distributing crack cocaine in the Monroe County area in 2013.
According to United States Attorney Peter Smith, the defendant, Jose Hernandez-Tirado, previously pleaded guilty to distribution and possession with intent to distribute crack cocaine.
Hernandez-Tirado was charged in an Information filed in August 2014. The charge against Hernandez-Tirado resulted from an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Pennsylvania State Police, and Berks County Detectives.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Mobile Woman Sentenced to 24 Months in Prison for Possessing A Firearm as A Convicted FelonRead the Press Release
Kenyen R. Brown, United States Attorney for the Southern District of Alabama announced that Molly Perez, age 39, a resident of Mobile, Alabama, was sentenced on February 5, 2015, by United States District Judge Kristi K. Dubose to 24 months imprisonment pursuant to her guilty plea to possessing a firearm after having been convicted of a felony (burglary, third degree). At sentencing, Judge DuBose found that Perez possessed the loaded firearm, which was recovered from her apartment, in connection with the possession and sale of controlled substances, including synthetic marijuana – commonly referred to as "Spice".
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile County Sheriff’s Office, and prosecuted by Donna B. Dobbins of the United States Attorney=s Office for the Southern District of Alabama.
Mission Woman Charged with Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Child Abuse.
Stephanie Luxon, age 23, was indicted by a federal grand jury on January 14, 2015. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 29, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in August 2014, in Todd County, Luxon abused, exposed, tortured, tormented, and cruelly punished a child under the age of seven years old.
The charge is merely an accusation and Luxon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services, the Federal Bureau of Investigation, and the Nebraska State Patrol. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Luxon was released on bond pending trial. Trial has been set for April 7, 2015.
Minnesota-Based ev3 to Pay United States $1.25 Million to Settle False Claims Act AllegationsRead the Press Release
Medical device manufacturer ev3 Inc., formerly known as Fox Hollow Technologies Inc., has agreed to pay the United States $1.25 million to resolve allegations under the False Claims Act that Fox Hollow caused certain hospitals to submit false claims to Medicare for unnecessary inpatient admissions related to minimally-invasive atherectomy procedures, the Justice Department announced today.
“Today’s settlement demonstrates our commitment to ensure that the Medicare Trust Fund is used to pay for only necessary medical care,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “Charging the government for higher-cost inpatient services that patients do not need wastes the country’s precious health care resources.”
“It should come as no surprise to anyone that proper health care of a patient includes more than just competence of a provider, it requires accuracy and honesty in billing Medicare for the patient’s treatment,” said U.S. Attorney William J. Hochul Jr. of the Western District of New York. “In this case, a medical device manufacturer allegedly induced hospitals to admit patients as inpatients for minimally-invasive procedures involving its device, even though many of those patients should have been treated as outpatients at significantly less cost. This was done in order to collect higher Medicare reimbursements which ultimately drive up costs for all taxpayers and beneficiaries of government health programs.”
The United States alleged that Fox Hollow, which was acquired by ev3 Inc. in late 2007, knowingly caused 12 hospitals located throughout nine states to submit claims to Medicare for medically unnecessary inpatient stays for certain Medicare beneficiaries undergoing elective atherectomy procedures. Atherectomy is a minimally-invasive surgical procedure that uses a small cutting device to remove atherosclerosis, or hardening of the arteries, from large blood vessels within the body, and it is intended to open up narrowed coronary arteries to increase blood flow and circulation. One such device used in atherectomy procedures is the Silver Hawk Plaque Excision System sold by Fox Hollow. The United States alleged that throughout 2006 and 2007, to increase hospital purchases of the Silver Hawk device, Fox Hollow advised hospitals that they should bill Silver Hawk atherectomy procedures as more expensive inpatient claims, as opposed to less costly outpatient claims. As a result, certain hospitals allegedly claimed greater reimbursement than they were entitled to for treating Medicare beneficiaries who underwent Silver Hawk atherectomy procedures.
“Medical device makers that try to boost their profits by causing patients to be admitted for unnecessary and expensive inpatient hospital stays will be held accountable,” said Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Both patients and taxpayers deserve to have medical decisions made based on what is medically appropriate.”
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. The lawsuit was filed by Amanda Cashi, who formerly worked as a Fox Hollow sales representative. Cashi will receive $250,000.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.5 billion through False Claims Act cases, with more than $15 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with ev3 was the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of New York, the Civil Division’s Commercial Litigation Branch, and HHS-OIG.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
The civil lawsuit is captioned United States ex rel. Cashi v. Fox Hollow Technologies, Inc., et al. Civ. No. 09-CV-01066-S (W.D.N.Y.).
Minneapolis Man Charged with Lying to Federal Agents During Terrorism InvestigationRead the Press Release
Defendant Intercepted in New York City While Attempting to Fly Overseas Possibly to Join Terror Organization
United States Attorney Andrew M. Luger today announced a criminal complaint charging HAMZA AHMED, 19, with lying to agents from the Federal Bureau of Investigation (FBI). AHMED is charged with making a false statement in a terrorism investigation.1 The defendant made an initial appearance on February 5, 2015, before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minn.
“Any person has a right to remain silent, or to consult an attorney when speaking with federal agents or prosecutors,” said U.S. Attorney Luger. “However, this Office will continue to prosecute those who lie to federal law enforcement officers and impede criminal investigations into suspected terrorist activity.”
According to the complaint and documents filed in court, AHMED and three companions, H.M.M, M.F., and Z.A., travelled by bus from Minneapolis, Minn., to New York City’s John F. Kennedy International Airport (JFK). The four men were each booked on international flights scheduled to depart JFK on November 9, 2014. AHMED and M.F. were booked on the same flight from JFK to Istanbul, Turkey. Z.A., M.F., and H.M.M. were each prevented from boarding their flights. AHMED successfully boarded, but was removed from the aircraft before it left the boarding gate.
According to the complaint and documents filed in court, AHMED was subsequently interviewed by FBI agents. He made multiple false statements during the interview, including telling agents that he was traveling alone, and that he did not know M.F. or H.M.M. When AHMED arrived back in Minnesota on November 9, 2014, FBI agents conducted a second voluntary interview, during which AHMED lied to agents.
According to the criminal complaint and documents filed in court, AHMED told FBI agents that he traveled to New York alone and intended to vacation in Madrid for four days by himself. However, the itinerary he booked would have allowed AHMED only one full day in Madrid. Moreover, AHMED did not book a hotel room in Madrid, and he did not know anyone in Madrid. AHMED again denied that he was traveling with M.F.
According to the criminal complaint and documents filed in court, AHMED told agents that he only “vaguely” knew H.A.M., an individual from Minnesota known to have traveled to Syria in 2014. However, a review of AHMED’s publicly available Twitter account shows that a lengthy series of messages between AHMED and H.A.M. took place between November 2013 and March 2014.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
This case is being prosecuted by Assistant U.S. Attorneys Andrew Winter and John Docherty.
Defendant Information:
HAMZA AHMED, 19
Minneapolis, Minn.
Charge:
• False Statement in a Terrorism Investigation, 1 countHamza Ahmed Complaint
The charges contained in the criminal complaints are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Members of Young Melph Mafia (YMM) Neighborhood Gang Plead Guilty to Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RUBEN GEIGER, a/k/a “Rue,” age 21, and DARIUS WILLIAMS, a/k/a “D-Man,” age 23, both of New Orleans, pled guilty yesterday to federal drug and gun charges.
According to the factual basis, GEIGER and WILLIAMS, along with other members of the Young Melph Mafia gang, pled guilty to participating in a wide-ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participating in several acts of violence against rival gangs. Specifically, GEIGER and WILLIAMS pled guilty to conspiring to possess and possessing with intent to distribute 28 grams or more of cocaine base (crack). They also pled guilty to conspiring to possess firearms in furtherance of drug trafficking crimes from 2008 to August 21, 2014.
For the drug conspiracy, GEIGER and WILLIAMS face a maximum of 40 years of incarceration, followed by a minimum of 4 years of supervised release, and a maximum fine of $5,000,000. For the gun conspiracy, GEIGER and WILLIAMS face a maximum of 20 years of incarceration, followed by up to 3 years of supervised release, and a maximum fine of $250,000. There is also a mandatory $100.00 special assessment for each count associated with this guilty plea. U.S. District Judge Kurt D. Engelhardt set sentencing for April 15, 2015. Four other YMM members – JACOBI BOYD, ALFRED COBBINS, DEONTRE HILLS and SHAWN GRACIN, previously entered guilty pleas and face the same potential sentences described above. Five other defendants – JAWAN FORTIA, JEFFERY WILSON, DEDRICK KEELEN, DELWIN MCLAREN and BRIAN SCOTT – are scheduled for trial on April 20, 2015.
“This is another example of how serious the federal government is in helping turn the tide of violence that is occurring in New Orleans,” stated U.S. Attorney Polite. “These local gangs have caused serious harm to the neighborhoods of this City, and the Department of Justice will continue to work with local authorities to bring these individuals to justice.”
U.S. Attorney Polite praised the work of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT) in investigating this case. Assistant U.S. Attorneys Edward J. Rivera and Maurice E. Landrieu, Jr. are in charge of the prosecution.
Maryland Hunting Guides Sentenced for Violating Maryland Black Bear Hunting RegulationsRead the Press Release
Baltimore, Maryland – On February 4, 2015, U.S. Magistrate Judge Timothy J. Sullivan sentenced Larry Eugene Harding, age 57, of Friendsville, Maryland, and Wallace A. Harward, age 58, of Forest Hill, Maryland, to pay a fine and restitution totaling $8,000 and $5,000, respectively, after the defendants pleaded guilty to violating Maryland black bear hunting regulations. In addition, Magistrate Judge Sullivan sentenced Harding and Harward to five years of probation and ordered each to perform 25 hours of community service for the Maryland Department of Natural resources. During their probation, Harding and Harward are precluded from any guiding activity involving commercial hunting, and are precluded from personally hunting for three years.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police; and Honora Gordon, Regional Special Agent in Charge for the U.S. Fish and Wildlife Service.
“The combined penalties in this case represent one of the most substantial sentences for a Maryland wildlife poaching case in more than two decades,” said Colonel George F. Johnson of the Maryland Natural Resources Police. “Because Maryland is a member of the Interstate Wildlife Violator Compact, Harding and Harward are also barred from hunting or guiding in 44 other states in the U.S. during the term of their suspensions. In addition, Harward’s Maryland waterfowl outfitters license will be immediately revoked and he will be prohibited from renewing during the term of his license suspension,” added Superintendent Johnson.
According to their plea agreements, between 2008 and 2010, Harding who operated Harding’s Wild Mountain Herbs, Inc., and Harward, who operated Timber Creek Services, engaged in commercial hunting activities for American black bear, mostly in Garrett County, Maryland. Hunting for black bear is highly regulated in Maryland. Restrictions included a prohibition on the use of bait to attract the bear, as well as requirements that hunters associated with each other on the same hunting permit remain within view of each other while hunting.
During the course of an undercover investigation by the Maryland Natural Resources Police and the U.S. Fish & Wildlife Service, law enforcement discovered that Harding and Harward were using bait to attract bears to locations where hunters – who had paid Harding and Harward to be guided in their pursuit of the bear – could more easily kill one of the animals. The undercover officers also learned that the defendants were violating the Maryland regulations that required a sub-licensee on a black bear hunting permit to remain in visual contact with the licensee.
During the course of the investigation, undercover officers posed as clients, paying Harding and Harward for guided bear hunts. Their investigation found Harding and Harward were illegally baiting bears for paying clients, some of whom came from outside Maryland to hunt.
During the hunts, Harding and Harward placed apples to bait the black bears, then led the hunters to those locations. For example, on October 25, 2009, Harding directed the undercover officers to the Raven Rock area near Friendsville, showing them where the bears would likely show up the next day. The following day, two hunters--one of them an undercover officer—taking part in a guided hunt led by Harding and Harward each killed a black bear over bait. The undercover officer shot his bear from a spot suggested by Harding, overlooking a pile of illegal bait. Harward also violated the terms of his hunting permit by remaining out of visual contact when the other hunter shot his bear. The bears killed by the hunter and the undercover officer were subsequently taken to a cooler located in the building where Harding conducted his business. Harding took photographs of the bears and the hunters, while Harward was recording the event with a video camera. Inside the cooler where the bear carcasses and skins were placed, the undercover officers saw five plastic 25 gallon garbage cans full of apple skins and cores, consistent with the apple pieces in the bait pile seen by the undercover officers
United States Attorney Rod J. Rosenstein praised the Maryland Natural Resources Police and the U.S. Fish and Wildlife Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.
Man Sentenced in Federal Court on Drug ChargesRead the Press Release
MOBILE, Ala. – Darrick Donnell Belcher, 36, of Marion, was sentenced in federal court for his participation in a conspiracy to possess with intent to distribute cocaine and crack cocaine. Belcher pled guilty to the charge in October of 2014.
United States District Court Judge Callie V. S. Granade imposed a sentence of 57 months imprisonment in Belcher’s case, to be followed by a three-year term of supervised release. She ordered that Belcher undergo drug treatment while incarcerated and during his term of supervised release. No fine was imposed in Belcher’s case, but he was ordered to pay a special mandatory assessment of $100.
The case was investigated by the 4th Judicial Circuit Task Force, the Alabama Attorney General’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney's Office by Assistant United States Attorney Gloria Bedwell.
Long-Time Seattle Area Pimp Sentenced to 10 Years in Prison for Sex Trafficking JuvenileRead the Press Release
A long-time Seattle area pimp was sentenced today in U.S. District Court in Seattle to 10 years in prison and 25 years of supervised release for Sex Trafficking of a Child, announced Acting United States Attorney Annette L. Hayes. DESMOND TREVAIN MANAGO, 26, pleaded guilty in September 2014, admitting that he forced a juvenile female to engage in prostitution in Washington, Idaho, Colorado, Arizona, and California. At sentencing U.S. District Judge Ricardo S. Martinez said, “Sex trafficking of children is seen as one of the worst crimes. . . You are affecting someone’s life forever.”
“Like the countless pimps who came before him, this defendant was manipulative and predatory,” said Acting United States Attorney Annette L. Hayes. “He viewed his victims as commodities that earned him money, and has spent his entire adult life exploiting troubled young women for his financial gain. The prison term and the federal supervision imposed by the court will produce long-term protection against future exploitation of vulnerable victims by this defendant.”
According to records in the case, between October and December 2012, MANAGO used force, fraud and coercion to cause a juvenile female victim to engage in commercial sex acts. MANAGO advertised the juvenile victim on Backpage.com and also forced her to “walk the track” – an area known for prostitution. The juvenile victim was forced to give MANAGO all the money she earned. In November 2012, MANAGO, accompanied by one of his family members, drove the juvenile victim and an adult woman to other states to work as prostitutes. MANAGO posted advertisements of his victims on Backpage.com in the different states and physically assaulted the adult victim. MANAGO left his victims in California and instructed them to wire their prostitution earnings to him in Seattle. Once MANAGO left the juvenile victim in California she broke free from his control.
MANAGO was prosecuted in King County Superior Court in 2009 as a member of the West Side Street Mobb – a gang that forced girls into prostitution to make money. MANAGO was sentenced to 30 months in prison. After he finished his prison sentence, he returned to the King County Jail for various violations. Jail records show that he continued to run his prostitution business while incarcerated, forcing women to pay some of their prostitution earnings to him while he was locked up.
MANAGO was arrested October 3, 2013 during a traffic stop for outstanding warrants. He was transferred to federal custody a year ago.
The case was investigated by the FBI, King County Sheriff’s Office and Tacoma Police Department. The case was prosecuted by Assistant United States Attorneys Kate Crisham and Ye-Ting Woo.
Lake Charles Man, Mexican National Sentenced for Roles in Drug Distribution RingRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Lake Charles man and a Mexican national were sentenced to seven months (time served) and 44 months in prison respectively for transporting and possessing marijuana.
Bertoldo Tolo Labra, 31, of Lake Charles, La., and Juan Antonio Garcia, 58, of Mexico, were sentenced by U.S. District Judge Richard T. Haik on one count of possession with intent to distribute marijuana. Labra was also sentenced to two years of supervised release, and Garcia was sentenced to three years of supervised release. According to evidence presented at the guilty pleas, the defendants admitted to transporting multi-kilograms quantities of marijuana at the direction of co-defendant Rogelio Cantu-Lopez in June and July of 2013 from Houston to a trailer in Moss Bluff, La. The marijuana was then sold to a third party.
The defendants were arrested as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation Cajun Gallo. The DEA, the George West Police Department in Texas, and the Houston Police Department participated in this OCDETF investigation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle targeted criminal organizations and seize their assets.
Assistant U.S. Attorney Howard C. Parker prosecuted the case.
Johnstown Crack Coaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 120 months in prison and three years’ supervised release on his conviction of distribution of cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Reginald Dervin Harris, 48.
According to information presented to the court, on Jan. 9, 2014, Harris distributed less than 28 grams of cocaine base.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Harris.
Johnson City Man Convicted of Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Following a two-day trial in U.S. District Court, on Feb. 4, 2015, Robert Nelson Racanelli, 26, of Johnson City, Tenn., was convicted of conspiracy to distribute, and possess with the intent to distribute, 280 grams or more of crack cocaine. Sentencing is set for 9:00 a.m., June 8, 2014. Racanelli faces a mandatory minimum 10 years in prison up to life. There is no parole in the federal system.
From March 2012, to April 2013, Racanelli conspired with various other persons to distribute, and possess with the intent to distribute, 280 grams or more of crack cocaine. These individuals included several out-of-state drug traffickers from Atlanta, Ga. During this time, Racanelli obtained multi-ounce quantities of crack cocaine from his coconspirators and then sold those drugs throughout Johnson City. On two occasions individuals working on behalf of law enforcement purchased crack cocaine from Racanelli.
As the investigation progressed, agents received court authorization to monitor the phone calls of members of this conspiracy. The resulting wiretaps produced phone calls in which Racanelli was repeatedly heard ordering crack cocaine, arguing about prices and quantities, discussing his drug sales, and joking about the addiction suffered by his customers.
This long term investigation was the product of a partnership between the Johnson City, Tennessee Police Department, First Judicial District Drug Task Force, and Drug Enforcement Administration. Assistant U.S. Attorney Nick Regalia represented the United States.
A total of 21 individuals were charged as part of this investigation. Those previously sentenced include:
Tavares Lashaun Dalton, 36, of Covington, Ga., 240 months; Marcus Lavoya Holliman, 36, of Atlanta, Ga., 210 months; Eullis Monroe Goodwin, 43, of Elizabethton, Tenn., 188 months; Micah Antwan Still, 34, of Covington, Ga., 120 months; Derrick Henry Connor, 40, of Sherills Ford, N.C.,, 120 months; Devin Deonte Blalock, 20, of Jonesboro, Ga., 120 months; Kwanza Tarveze Worthy, 20, of Atlanta, Ga., 120 months; Don Juan Glass, Jr., 22, of Atlanta, Ga.,120 months; Uhamma Castillo Delgado, II, 24, of Johnson City, Tenn.,120 months; Demario Jenard Serchion, 29, of Atlanta, Ga., 77 months; and Cody Alan Sherrill, 22, of Jonesborough, Tenn.,41 months.
All others are awaiting prosecution or sentencing.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Investment Advisor Indicted in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, announce that an indictment was unsealed today charging Michael Szafranski, 36, of Surfside, Florida, with conspiracy to commit wire fraud. The indictment was unsealed in open court in Ft. Lauderdale by U.S. Magistrate Judge Alicia O. Valle. The defendant was ordered released on a $250,000 personal surety bond. If convicted, the defendant faces a maximum sentence of twenty years’ imprisonment and a $250,000 fine on each count.
The indictment, which was returned by a grand jury in Ft. Lauderdale on January 22, 2015, charges that the defendant was a registered investment advisor who, from in or about 2008 through in or about November 2009, conspired to defraud various investors. In 2009, it was discovered that the former law firm of Rothstein, Rosenfeldt & Adler, P.A. (RRA) was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
The indictment charges that Szafranski and Rothstein conspired to induce various persons and entities into investing money in the confidential settlements through material misstatements and material omissions by defendant Szafranski. Those material misstatements and omissions were designed to deceive investors and potential investors as to the legitimacy and authenticity of the parties ostensibly involved in the confidential settlements. The indictment further charges that Szafranski secretly received millions of dollars in compensation from Rothstein and RRA while simultaneously employed by certain investors as a purportedly independent verifier of the legitimacy of the settlement transactions.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on February 5, 2015, and entering pleas of Not Guilty were:
- CAMERON CHARLES BACKER, a 26-year-old resident of Lame Deer, appeared on charges of assault on a federal officer. If convicted of the charge contained in the indictment, BACKER faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-128
- JOSEPH SEAN LITTLE, a 31-year-old resident of Lame Deer, appeared on charges of involuntary manslaughter. If convicted of the charge contained in the indictment, LITTLE faces 2 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 15-06
Appearing before U.S. Magistrate Judge Ostby in Billings on February 4, 2015, and entering pleas of Not Guilty were:
- CAMERON SEAN ALLSHOUSE, a 36-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, ALLSHOUSE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Billings Police Department. PACER Case Reference: 15-03
- RICHARD JUNIOUS HILL, JR., a 30-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, HILL faces 40 years in prison, $1,000,000 in fines and 4 years supervised release. The case was investigated by the FBI Drug Task Force. PACER Case Reference: 14-72
Appearing before U.S. Magistrate Judge Johnston in Great Falls on February 3, 2015, and entering pleas of Not Guilty were:
- TIMOTHY WARREN ROSETTE, a 51-year-old resident of Box Elder, appeared on charges of bribery of an official of an Indian tribal government receiving federal funding. If convicted of the most serious charges contained in the indictment, ROSETTE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General, Internal Revenue Service, Environmental Protection Agency Office of Inspector General, Federal Bureau of Investigation, and U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference: 14-101
- TIMOTHY WARREN ROSETTE, a 51-year-old resident of Box Elder, appeared on charges of bribery of an official of an Indian tribal government receiving federal funding, false claims act conspiracy, and false and fraudulent claim against federal funded project. If convicted of the most serious charges contained in the indictment, ROSETTE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General, Internal Revenue Service, Environmental Protection Agency Office of Inspector General, Federal Bureau of Investigation, and U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference: 15-03
- TIMOTHY WARREN ROSETTE, a 51-year-old resident of Box Elder, appeared on charges of bribery of an official of an Indian tribal government receiving federal funding and theft from and Indian tribal organization. If convicted of the most serious charge contained in the indictment, ROSETTE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General, Internal Revenue Service, Environmental Protection Agency Office of Inspector General, Federal Bureau of Investigation, and U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference: 15-04
Appearing before U.S. Magistrate Judge Lynch in Missoula on February 3, 2015, and entering pleas of Not Guilty were:
- JOSE SALINAS-CHACON, a 47-year-old resident of Honduras, appeared on charges of illegal reentry. If convicted of the charge contained in the indictment, SALINAS-CHACON faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Homeland Security. PACER Case Reference: 15-12
Appearing before U.S. Magistrate Judge Ostby in Billings on January 30, 2015, and entering pleas of Not Guilty were:
- PRESTON DAVID BELL, a 21-year-old resident of Wyola, appeared on charges of uttering counterfeit obligations. If convicted of the most serious charge contained in the indictment, BELL faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by United States Secret Service. PACER Case Reference: 14-114
- OLAF JAMES HAUGEN, a 29-year-old resident of Lame Deer, appeared on charges of aggravated sexual abuse. If convicted of the charge contained in the indictment, HAUGEN faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. PACER Case Reference: 15-05
- ERIC HARVEY LITTLECALF, a 22-year-old resident of Rabbit Town, appeared on charges of assault resulting in serious bodily injury and felony child abuse. If convicted of the most serious charge contained in the indictment, LITTLECALF faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-130
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houma Man Pleads Guilty to Federal Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DWYANE A. TILLMAN, a/k/a "Dwayne A. Tillman", age 47, of New Orleans, pled guilty yesterday to federal drug charges.
TILLMAN pled guilty to possession with the intent to distribute 500 grams or more of cocaine hydrochloride. According to court documents, law enforcement agents encountered TILLMAN at the Amtrak Station in Schriever, Louisiana. Agents discovered that TILLMAN was carrying a large quantity of cocaine hydrochloride in his duffel bag.
TILLMAN faces a maximum of 40 years’ incarceration, followed by a minimum of 4 years supervised release, and a maximum fine of $5,000,000. There is also a mandatory $100.00 special assessment associated with this guilty plea. U.S. District Judge Sarah S. Vance set sentencing for May 13, 2015.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, Louisiana State Police and the Amtrak Police Department in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Honduran National Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONY RIVERA-GONZALES, age 23, a citizen of Honduras and who most recently resided in Hammond, pled guilty today to a one-count Indictment for illegal use of a Social Security Number.
According to the Indictment, on or about August 20, 2014, RIVERA-GONZALES submitted a social security number that did not belong to him to a Louisiana Department of Motor Vehicles Office in order to obtain a Louisiana identification card. Based on that false submission, an employee with the Department of Motor Vehicles issued RIVERA-GONZALES a Louisiana identification card.
RIVERA-GONZALES faces a maximum term of five years imprisonment, followed by three years of supervised release, a fine of $250,000, and a mandatory special assessment of $100.00. U.S. District Judge Mary Ann Vial Lemmon set sentencing for May 14, 2015.
U.S. Attorney Polite praised the work of the Homeland Security Investigations and the Louisiana State Police in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EDUARD TERCERO-LAGOS, age 25, a citizen of Honduras, pled guilty yesterday to a one-count Indictment for illegal reentry of removed alien.
According to the Indictment, on or about December 8, 2014, TERCERO-LAGOS was found in the United States after having been officially deported and removed on or about June 24, 2013, and on August 5, 2005.
TERCERO-LAGOS faces a maximum term of imprisonment of two years, a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for March 18, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Indicted for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DENYS BENITEZ-FERNANDEZ, age 32, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.
According to the Indictment, BENITEZ-FERNANDEZ was encountered by Immigration & Customs Enforcement agents in the Eastern District of Louisiana on January 22, 2015, after records showed he had been previously deported from the United States to Honduras on April 24, 2013.
If convicted, BENITEZ-FERNANDEZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration & Customs Enforcement in investigating this matter. Assistant U.S. Attorney Emily K. Greenfield is in charge of the prosecution.
Hartford Man Sentenced to More Than 7 Years in Prison for Drug Distribution, Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that VINCENT NELSON, also known as “June,” 29, of Hartford, was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 90 months of imprisonment, followed by four years of supervised release, for distributing narcotics and illegally possessing firearms.
According to court documents and statements made in court, this matter stems from an FBI Northern Connecticut Violent Crime and Gang Task Force investigation targeting gang and drug related activity in Hartford’s South End. Beginning in November 2012, investigators made controlled purchases of crack cocaine from NELSON and his associate, Steven Granger, in the South End. NELSON and Granger were identified by investigators as members of Money Green/Bedroc, a gang that at a time controlled the Bedford and Green Street neighborhoods off Albany Avenue in Hartford’s North End. Money Green/Bedroc’s principal rival, the AVE, controlled the narcotics activity in adjacent neighborhoods, and the long standing dispute between the two gangs caused violent activity, including shootings and murders, in the area from 2008 until 2012.
NELSON’s criminal history includes multiple felony convictions, including a conviction for first degree assault for which he was sentenced to five years of imprisonment in 2009.
NELSON, Granger and another associate, Hector Alfonso of East Hartford, were arrested on January 23, 2013. On that date, court-authorized searches of NELSON’s residence at 2 Warner Street Extension and Granger’s residence at 52 Elliott Street resulted in the seizure of three handguns, assorted ammunition, body armor, approximately 300 grams of crack cocaine, approximately 300 grams of cocaine, a small quantity of heroin, narcotics packaging material and $45,736 in cash. Investigators also seized two vehicles.
NELSON has been detained since his arrest. On July 9, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 28 grams or more of cocaine base (“crack”), and one count of possession of a firearm and ammunition by a convicted felon.
Granger and Alfonso also pleaded guilty and previously were sentenced to prison terms of 60 months and 18 months, respectively.
The matter was investigated by the FBI’s Northern Connecticut Violent Crimes Gang Task Force, which includes representatives of the FBI, Connecticut State Police, the Hartford Police Department and the Connecticut Department of Correction, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Guatemalan National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ESWIN ESTUARDO MARTINEZ-REYES, age 42, a citizen of Guatemala, pled guilty yesterday to a one-count Indictment for illegal reentry of removed alien.
According to the Indictment, on or about December 2, 2014, MARTINEZ-REYES was found in the United States after having been officially deported and removed on or about June 7, 2013.
MARTINEZ-REYES faces a maximum term of imprisonment of two years, a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for March 18, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Gillian A. Gallardo Charged with Military Housing Allowance FraudRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Gillian A. Gallardo, age 29, stationed on board Andersen Air Force Base, Guam, has been indicted by a federal grand jury on February 4, 2015, with two counts of theft of government money (18 U.S.C. § 641), two counts of fraudulent claim against the United States (18 U.S.C. § 287), and two counts of false statement to a federal government agency (18 U.S.C. § 1001). For each count of theft of government money, the maximum sentence under the statute is 10 years in prison and a $250,000 fine. For each count of fraudulent claim against the United States and each count of false statement to a federal government agency, the maximum sentence under the statute is 5 years in prison and a $250,000 fine. A summons was issued for Gallardo to appear in federal court on February 18, 2015, for her arraignment.
The indictment alleges that on November 27, 2012, Gallardo, an active duty Staff Sergeant in the U.S. Air Force, knowingly submitted false Overseas Housing Allowance documentation to the Defense Finance and Accounting Service (DFAS) that falsely claimed that Gallardo paid $2,450 in rent every month for her supposed occupancy of a certain residence in Yigo. In reality, Gallardo lived rent-free at an entirely different address in Dededo and pocketed the OHA funds.
Military members who are active duty or activated reservists or activated National Guardsmen are eligible to receive a tax-free housing allowance known as Overseas Housing Allowance (OHA). The amount of OHA compensation that an active duty military member can receive is determined by the actual amount of money the individual is paying for housing costs, up to a maximum amount determined by the individual’s rank and whether or not the individual has dependents. In Gallardo’s case, the maximum rental amount for which she could be compensated was $2,450.
The indictment further alleges that from October 1, 2012 through April 30, 2013, Gallardo received tax-free reimbursement for her fraudulent rental payments as well as tax-free reimbursements for utility expenses, which totaled approximately $21,501.90. To corroborate her OHA claim, Gallardo presented a false lease agreement to DFAS that falsely stated that Gallardo paid $2,450.00 every month in rent for her occupancy of this Yigo residence.
The indictment further alleges that on May 13, 2013, Gallardo again knowingly submitted false OHA documentation to DFAS that falsely claimed that Gallardo and another active duty Air Force Staff Sergeant paid a total of $4,400 in rent every month for their occupancy of their residence in Dededo. Relying on the OHA documentation Gallardo submitted, DFAS paid tax-free OHA reimbursement for the $2,200 she supposedly paid for her share of the rent every month. In reality, Gallardo and the other Staff Sergeant had a secret arrangement with their landlord to pay a significantly reduced amount of rent each month so that they could each pocket the remaining OHA payments.
From May 1, 2013 through March 31, 2014, Gallardo received tax-free reimbursement for her fraudulent rental payments as well as tax-free reimbursements for utility expenses, which totaled approximately $29,231.20. To corroborate this OHA claim, Gallardo again presented a false lease agreement to DFAS that falsely stated that Gallardo paid $2,200.00 every month in rent for her occupancy of this Dededo residence. The total amount of OHA payments Gallardo fraudulently received was $50,733.10.
This case is the result of an investigation conducted by the Air Force Office of Special Investigations. The prosecution is being handled by Special Assistant U.S. Attorney Kurt Grunawalt.
The charges in the Indictment are only allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Men Sentenced for Multi-Million Dollar Mortgage and Consumer Fraud SchemeRead the Press Release
STATESVILLE, N.C. – On Wednesday, February 4, 2015, U.S. District Judge Richard L. Voorhees sentenced four defendants involved in a consumer and mortgage fraud conspiracy which resulted in multi-million dollar losses for consumers and federal agencies, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Today’s sentences are the result of an investigation into a fraudulent mortgage and consumer fraud scheme committed by executives and employees of Phoenix Housing Group (“PHG”) and related lenders. The scheme caused multi-million dollar losses for consumers and federal agencies, including home buyers, the lenders that financed the home sales, and the U.S. Department of Housing and Urban Development (“HUD”) and U.S. Department of Agriculture (“USDA”), which guaranteed the loans.
Joseph (“Joey”) Klakulak, 36, of Charlotte, was sentenced to 30 months in prison, two years of supervised release and was ordered to pay $5,635,384.81 as restitution. Dennis Parris Wayne, 57, of Pinehurst, N.C. was sentenced to 24 months in prison, two years of supervised release and was ordered to pay $24,087,187.34 as restitution. Isaac “Ike” Vinson, IV, 47, of Murrells Inlet, S.C. was sentenced to 24 months in prison, two years of supervised release and was ordered to pay $6,625,841.24 as restitution. And, Andrew B. McKeown, 40, of Asheboro, N.C. was sentenced to a two year probationary term, with the first six months to be served in home confinement. McKeown was also ordered to pay $4,333,076.87 as restitution.
According to filed documents and statements made in court today, Parris was a former PHG Senior Vice President. Vinson was a former loan officer and manager for W.R. Starkey Mortgage (“WRSM”), McKeown was a former Sales Manager, and Klakulak was a Charlotte-based former loan officer for numerous lenders, including WRSM.
Court records indicate that from approximately 2004 to 2010, Parris, Vinson, McKeown, Klakulak, and related conspirators Roger Bailey, Marina McCuen and Fabian Sparrow originated hundreds of fraudulent HUD/FHA-insured and USDA-insured mortgage loans totaling more than $150 million and resulting in net losses of over $21 million to the United States and more than $3.3 million to consumers.
According to court records, the defendants convinced customers to purchase manufactured homes which they could not afford by misrepresenting the financing terms of the loans. Court records show that the conspirators secured loans for the unqualified consumers by providing lenders with documents that contained fraudulent customer information, such as false income, assets, and credit. According to court records, in some instances defendants also obtained inflated appraisals, misrepresented the source of down payment funds, and coerced consumers to sign closing documents. At times, the defendants also collected down payment money for which borrowers received no credit.
In handing down the defendants’ sentencings, Judge Voorhees noted the exceptional losses families “suffered as a result of unrealistic and ill-motivated procedures foisted on them.”
Klakulak pleaded guilty in August 2013 to conspiracy to make false statements to a federal agency and submit false statements to HUD. Parris and Vinson pleaded guilty in April 2014 and November 2014, respectively, to conspiracy to make false statements to a federal agency, submit false statements to HUD and destroy records in a federal investigation. McKeown pleaded guilty in January 2014 to concealing the conspiracy to defraud the government and consumers.
In August 2014, Marina McCuen, 51, of Asheville, N.C., and Roger Bailey, 42, of Hickory, were sentenced to 50 months and 30 months in prison, respectively. McCuen was a WRSM loan officer and Bailey was a sales manager of PHG’s sales center in Granite Falls. In addition to their prison terms, all defendants are barred from participating in mortgage lending.
The last conspirator charged in connection with this case, Fabian Sparrow, 36, of Burlington, N.C. has pleaded guilty to conspiracy to make false statements to a federal agency and submit false statements to HUD and is currently awaiting sentencing. Sparrow was a sales manager at PHG’s sales center in Burlington. In January 2011, PHG ceased business operations as part of a settlement with the Consumer Protection Division of the North Carolina Attorney General’s office.
Following the sentencing hearings, the defendants were ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Tompkins thanked the multiple agencies involved in the investigation:
Office of the Inspector General, Office of Investigation of the Department of Housing and Urban Development (HUD-OIG); Office of the Inspector General, Office of Investigation of the U.S. Department of Agriculture (USDA-OIG); Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS); North Carolina Attorney General’s Office; and North Carolina Commissioner of Banks (NCCOB). U.S. Attorney Tompkins also thanked the United States Marshals Service for their substantial assistance in financial analysis and the Department of State for their assistance in the apprehension of Sparrow when he fled the United States for Doha, Qatar.
The prosecution for the case was handled by Assistant United States Attorneys Michael Savage and Benjamin Bain-Creed, of the U.S. Attorney’s Office in Charlotte.
Former University of Kentucky Professor Pleads Guilty to Wire FraudRead the Press Release
LEXINGTON, KY - Dongping “Daniel” Tao, a former mining engineering professor at the University of Kentucky, admitted in federal court today that he defrauded the University out of tens of thousands of dollars, in items and services.
Tao, 54, pleaded guilty to one count of wire fraud, before U.S. District Judge Karen Caldwell. Tao also admitted that he defrauded Georgia-Pacific, LLC, a private company for whom he worked as a consultant.
Tao acknowledged that he received grant money from the University that was intended for research, on behalf of the College of Engineering, but Tao used the money for his consulting business, paying for travel, materials, and services. Tao then sought payment from his consulting clients, as reimbursement for expenses that he had actually used the University’s money to pay.
Tao also admitted that he fabricated and altered invoices, to show fictitious costs, and submitted those invoices to the University and Georgia-Pacific for payment. Tao then received payment for these fraudulent expenses.
According to his plea agreement, between 2010 and 2013, Tao fraudulently obtained $59,411.86 from the University and $2,280.00 from Georgia-Pacific
.Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Howard Marshall, Special Agent in Charge, FBI, jointly announced the guilty plea.
The investigation was conducted by the FBI, the UK Police Department, and the UK Internal Audit Department. Assistant U.S. Attorney Andrew T. Boone represents the federal government in this case.
Tao is scheduled to be sentenced on June 11, 2015 at 10:30 am. He faces a maximum prison sentence of 20 years and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Former State Senate Leader Malcolm Smith and Queens GOP Leader Vincent Tabone Found Guilty in White Plains Federal Court of Bribery and Fraud Charges Connected to 2013 NYC Mayor’S RaceRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas P. Zugibe, the Rockland County District Attorney, announced that former New York State Senate leader MALCOLM SMITH was found guilty in federal court of bribing New York City Republican leaders, including Queens County Republican Party Vice Chairman VINCENT TABONE, who was also convicted of receiving bribes, to allow SMITH, a Democrat, to run as a Republican candidate for New York City Mayor in 2013. SMITH was also found guilty of extortion for his role in obtaining New York State funding for a real estate project in Spring Valley, New York, in exchange for cash bribes paid on his behalf to the New York City Republican Party chairmen. In addition, TABONE was convicted of witness tampering when he attempted to persuade former Queens County Republican Party Chairman Philip Ragusa not to testify against him. The two were convicted after a four-week jury trial before U.S. District Judge Kenneth M. Karas.
Manhattan U.S. Attorney Preet Bharara said: “As the jury unanimously found, the give-and-take of the political process should not be the giving and taking of bribes, which is what Malcolm Smith and Vincent Tabone tried to make it. Smith gave, and Tabone took, a $25,000 cash bribe to permit Smith to run for New York City Mayor as a Republican. Smith and Tabone were not alone in this scheme – Smith also bribed Daniel Halloran, another Republican Party official. And sadly, this was just one of many pockets of corruption this Office has uncovered in New York, which has become the ‘show me the money’ state. It should not be asking too much to expect public officials at least to obey the law. This Office will continue the vigorous prosecution of political corruption until every public official understands that violating the public trust will likely land you in prison.”
Rockland County District Attorney Thomas P. Zugibe said: “The facts put forth at this trial and the resulting verdict clearly display how official corruption can potentially impact our system of government and how it can be stopped. I'd like to thank the United States Attorney's Office for taking this case to a successful conclusion and I commend our federal partners and the members of my staff for their efforts. I look forward to future success in rooting out corruption through the continued efforts of the United States Attorney's Office, the Federal Bureau of Investigation, and the Rockland County District Attorney's Office through our Public Corruption Task Force.”
According to the Complaint and the Indictment filed in federal court and the evidence presented at trial:
The Bribery and Extortion Schemes
SMITH was first elected to the New York State Senate in November 2000, and represented a district within Queens, New York. He was Chairman of the Independent Democratic Conference of the State Senate and, among other positions, has served as the State Senate’s minority and majority leader and acting lieutenant governor. From November 2012 through April 2, 2013, SMITH agreed with former New York City councilman Daniel Halloran, who was convicted in a separate trial, and an undercover FBI agent posing as a wealthy real estate developer (the “UC”), and a cooperating witness (“CW”) to bribe New York City Republican Party county leaders, including TABONE, in exchange for their authorization for SMITH to appear as a Republican candidate for New York City Mayor in 2013, even though SMITH is a registered Democrat.
SMITH participated in two overlapping criminal schemes that involved the payment of bribes to obtain official action. First, SMITH authorized the payment of $110,000 in cash bribes to be paid to leaders of the New York City Republican Party, including TABONE, so that they would allow SMITH to run for mayor on the Republican Party’s ballot line. Second, SMITH agreed to use his influence to help steer at least $500,000 in New York State transportation funding to a real estate project the UC and CW had proposed to develop in Spring Valley, New York, in exchange for the UC and CW paying bribes on SMITH’s behalf to the New York City Republican Party Chairs.
In furtherance of the scheme, SMITH authorized the UC and the CW to meet TABONE, the Executive Vice Chairman of the Queens County Republican Party, Joseph Savino, the Chairman of the Bronx County Republican Party, and other party leaders. During a meeting with the UC, TABONE accepted a $25,000 cash bribe in a dimly lit SUV parked in front of a Manhattan restaurant and agreed to accept another $25,000 after his committee authorized SMITH to compete in the Republican primary. Savino similarly accepted a $15,000 cash bribe and agreed to accept another $15,000 after he voted to authorize SMITH to compete for the Republican ballot line. In return for his efforts in negotiating the bribes, Daniel Halloran accepted $15,500 as a down payment on a “broker’s” fee of at least $75,000 and expected to be appointed First Deputy Mayor if Smith was elected mayor.
Witness Tampering
Shortly before the start of a previously scheduled trial, the Government sought permission from the Court to take the deposition of Philip Ragusa, the former Chairman of the Queens County Republican Party. Ragusa, who was gravely ill at the time, was expected to testify favorably to the Government. Over TABONE’s objections, the Court ordered the deposition to take place. An hour before the scheduled start of the deposition, TABONE unexpectedly appeared at Ragusa’s home and attempted to pressure Ragusa not to testify against him.
SMITH, 57, and TABONE, 48, both of Queens, New York, were found guilty of one count of conspiracy, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of Travel Act bribery, which carries a maximum sentence of five years in prison. SMITH was separately convicted of one count of extortion, which carries a maximum sentence of 20 years in prison, and TABONE was separately convicted of one count of witness tampering, which carries a maximum sentence of 20 years in prison. Each of the counts of conviction also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense.
SMITH and TABONE are scheduled to be sentenced by Judge Karas on July 1, 2015, at 10:00 a.m. and 11:00 a.m., respectively.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation and the Rockland County District Attorney’s Office.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant United States Attorneys Douglas B. Bloom, Justin Anderson and Perry Carbone are in charge of the prosecution.
Former Secretary of Transportation James Kerasiotes Sentenced to Six Months in Jail for Tax EvasionRead the Press Release
BOSTON – James Kerasiotes, 61, former Massachusetts Secretary of Transportation, was sentenced today to six months in prison by U.S. District Court Judge William G. Young for filing false tax returns. Judge Young also ordered Kerasiotes to serve one year of supervised release, four months of which must be served in home confinement, $31,448 in restitution to the IRS and a $5,000 fine. Kerasiotes was ordered to report to the U.S. Marshals on March 20, 2015.
“As a former cabinet-level official in state government whose salary was paid with tax dollars, James Kerasiotes was well versed in the fundamental obligation to honestly report his income,” said U.S. Attorney Carmen M. Ortiz. “Instead he did just the opposite – seeking to cheat the system and undermine the work of good government.”
Kerasiotes pleaded guilty in September 2014. In January 2015, after a four-day evidentiary hearing, the Court held that the government had proven that the tax loss attributable to Kerasiotes’s crimes was more than $30,000.
Kerasiotes admitted that he was a self-employed consultant providing strategy and business origination services to clients in the transportation and construction industries. For the calendar years 2010 and 2011, Kerasiotes filed Forms 1040, U.S. Individual Income Tax Returns, knowing that those forms reflected only a portion of the income Kerasiotes earned from his consulting business during those years. By underreporting his total business income for 2010 and 2011, Kerasiotes evaded the payment of income taxes to the IRS.
United States Attorney Carmen M. Ortiz, William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office, made the announcement today. The case was prosecuted by Kristina E. Barclay of Ortiz’s Public Corruption Unit.
Former Florida Resident Sentenced for Attempted Sex TraffickingRead the Press Release
Orlando, Florida – Chief United States District Judge Anne C. Conway today sentenced Patrick R. Minga (50, formerly of Cape Coral) to four years and nine months in federal prison for to attempting to induce and facilitate, for his own financial gain, the travel of an individual from Brevard County, Florida, to Quito, Ecuador, so that the individual could engage in illicit sexual conduct with minor girls. In addition, following his release from prison, Minga was ordered to serve 20 years of supervision, to have no contact with minors, and must register as a sex offender.
According to court documents, Minga advertised, on Craigslist, a sex tourism business in Ecuador that could facilitate lodging, transportation, meals, and unlimited access to females for a fee. An undercover agent with a U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Task Force observed the ad and contacted Minga. Over the course of several months, Minga tried to induce and arrange the travel of the agent from Florida to Quito, where Minga advised that he could provide sexual encounters with minors as young as 13 and 14 years of age.
On March 2, 2014, Minga traveled from Ecuador to the United States, where he was arrested by agents in Huntsville, Alabama.
“HSI remains committed to stopping criminals from exploiting children globally,” said Susan L. McCormick, special agent in charge of HSI Tampa. “As evidenced by this case, HSI will continue to work with our local and transnational law enforcement partners, like the Brevard County Sheriff’s Office, and utilize every available resource to target child predators who travel internationally with the sole intent to exploit and victimize the innocence of children.”
"This case is another excellent example of interagency cooperation that targets criminals who prey upon the most precious things in our lives, our children,” stated Brevard County Sheriff Wayne Ivey. “If your intent is to harm a child, our intent is to track you down and bring you to justice!"
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Executives Sentenced to Prison for Defrauding Employer of $1 Million Through Fraudulent Expense ClaimsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Paul Dunham, age 59, of Northampton, England, formerly of Montgomery County, Maryland, today to 4 years in prison, followed by three years of supervised release, for conspiring to commit wire fraud and for money laundering, in connection with a scheme in which he and his wife, Sandra Dunham, fraudulently requested reimbursement from their employer for purported business expenses, but were instead for mortgage payments on time shares in Barbados, luxury bedding for their home, a dog sofa and other personal expenses. On January 29, 2015, Judge Grimm sentenced Sandra Dunham, age 58, to two months imprisonment, with a reduction of 42 days for time served, for the wire fraud conspiracy. Judge Grimm specified that the remaining 18 days of Mrs. Dunham’s sentence be served in home detention. Judge Grimm also entered an order requiring the couple to forfeit and pay restitution of $1 million, the total losses incurred as a result of the scheme.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to their guilty pleas, Paul and Sandra Dunham worked for PACE Worldwide which was located at various times in Maryland and North Carolina, and had a subsidiary in the United Kingdom named PACE Europe Ltd. PACE produced parts for the repair and reworking of electronics for the military and others. Paul Dunham held a number of executive positions, including president and chief operating officer. Sandra Dunham was initially hired to work for the European subsidiary in the accounts department, and eventually became the director of sales and marketing for PACE Worldwide. The Dunhams relocated from the United Kingdom to Maryland and then North Carolina, and were provided with corporate credit cards.
Between 2002 and 2009, Paul and Sandra Dunham fraudulently charged personal expenses to their corporate credit cards and submitted vouchers to PACE for reimbursement that falsely described the expenditures as business expenses. For example, Paul Dunham represented that $3,007 had been spent on meals during business meetings, when in fact the money was spent on luxury bedding for his upscale North Carolina residence. Sandra Dunham sought reimbursement for $8,397 which she represented as expenses incurred to cancel a vacation due to a business meeting, when these expenses were actually mortgage payments the couple made on two separate time share units the couple had purchased in Barbados. Other personal expenses which were falsely described as business expenditures included personal legal fees, expensive furniture, a domed pet residence and a dog sofa.
The couple also fraudulently billed PACE Europe Ltd. for business expenses already paid by PACE Worldwide, obtaining duplicate reimbursements.
In addition, a substantial portion of the scheme involved Paul Dunham abusing a private position of trust to manage and direct others, including his secretary, in the execution of the scheme. Moreover, in an attempt to conceal the scheme, Paul Dunham repeatedly forged receipts and invoices to create the false appearance that they were for business, rather than personal expenses.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys David I. Salem and Leah J. Bressack, who prosecuted the case.
Former CEO of Paramount Management Pleads Guilty in Manhattan Federal Court to Commodities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ALEX V. EKDESHMAN, the Chief Executive Officer of Paramount Management, LLC, pleaded guilty today to commodities fraud. EKDESHMAN ran a fraudulent scheme in which he solicited over $1.5 million dollars from over 100 investors for the purpose of investing in foreign exchange currency transactions and then misappropriated the majority of investors’ funds to pay for personal and business expenses. EKDESHMAN was originally charged in May 2014, and he pled guilty today in Manhattan federal court before the Honorable Vernon S. Broderick, United States District Judge.
U.S. Attorney Preet Bharara said: “Alex Ekdeshman stole over $1.5 million from over 100 investors. His actions are another example of greed overpowering judgment.”
According to the Information, other documents filed in Manhattan federal court, and statements made during court proceedings:
From at least in or about May 2011 through May 2013, EKDESHMAN ran a fraudulent commodities trading scheme. EKDESHMAN, who was chief executive officer of Paramount Management, LLC (“Paramount Management”), located in New York, New York, represented to investors that Paramount Management was in the business of investing in foreign exchange currency transactions, or “forex.” Through various employees of Paramount Management, EKDESHMAN solicited investor funds on the understanding that the funds would be solely invested in forex. As a result of these solicitations, EKDESHMAN and his employees collected at least $1.58 million from approximately 115 investors.
Contrary to EKDESHMAN’s promise to invest the investors’ funds in forex, EKDESHMAN misappropriated the large majority of investor funds. More than $1 million in investor funds were never traded in forex. Instead, EKDESHMAN used those funds to make payments to himself and his family members, to buy personal items, to pay for business expenses related to Paramount Management, and to pay employees of Paramount Management.
EKDESHMAN, 38, of Holmdel, New Jersey, pleaded guilty to one count of commodities fraud. This charge carries a maximum sentence of 10 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the United States Commodity Futures Trading Commission for its assistance. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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’s 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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jessica A. Masella is in charge of the prosecution.
Egyptian National Convicted of Resisting Deportation OrdersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a federal jury found an Egyptian national guilty of refusing to leave the country twice after being ordered to depart.
Mohamed Admed Hassan Abdallah Omran, 38, of Egypt, was found guilty of two counts of failure to depart for resisting removal after final deportation orders. United States District Judge Dee D. Drell presided over the trial. The defendant’s trial started Wednesday and ended today with the jury returning the guilty verdict after deliberating for 10 minutes. Evidence admitted at trial revealed that on two occasions U.S. Immigration Enforcement Agents attempted to remove Omran from the country via the Alexandria International Airport by putting him on a commercial flight. The defendant hampered agents’ ability to remove him by verbally and physically resisting agents on June 12, 2013. The defendant also hampered attempts to put him on a commercial flight at the airport on July 24, 2013. This prevented him from boarding the flights because of airline and Transportation Security Administration safety policies.
Omran faces four years in prison, three years of supervised release, and a $250,000 fine for each count. Sentencing has been set for May 11, 2015.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorneys Michael O’Mara and Cytheria D. Jernigan are prosecuting the case.Edwin Monsanto Sentenced to 33 Months in Prison for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Edwin Monsanto, 54, of St. Thomas, to 33 months in prison and five years of supervised release for conspiracy to possess with intent to distribute cocaine, United States Attorney Ronald W. Sharpe announced.
On January 29, 2014, Monsanto pleaded guilty to conspiracy to possess with intent to distribute 20 kilograms of cocaine. Monsanto was arrested as part of the investigation of Roberto Tapia, Director of the Virgin Islands Department of Planning and Natural Resources (DPNR) Division of Environmental Enforcement. On November 7, 2013, Monsanto was charged in a 69-count third superseding indictment, along with Tapia, Angelo Hill, Walter Hill, Jr., Stephen Torres, Eddie Lopez-Lopez, Raymond Brown, Hector Alcenio, and Angel L. Negron-Beltran.
As part of his sentence, Monsanto also was ordered to pay a $100 special assessment, perform 150 hours of community service, and forfeit all proceeds of his crime.
The case was investigated by the Public Corruption Task Force, which comprises the Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA); Virgin Islands Police Department; U.S. Marshals Service; Internal Revenue Service Criminal Investigation Division (IRS-CI); U.S. Department of Homeland Security, Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); United States Coast Guard; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Office of the Virgin Islands Inspector General. It was prosecuted by former Assistant U.S. Attorneys Kim R. Lindquist and Kelly B. Lake, and Assistant U.S. Attorney Kim L. Chisholm.
East Texans Arrested on Federal ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - U.S. Attorney John M. Bales announced today that 18 individuals have been arrested following a lengthy investigation into drug trafficking in the Eastern District of Texas.
On Feb. 5, 2015, a combined task force of federal, state and local law enforcement executed federal arrest warrants in Gregg and Upshur counties as a result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Administration, Gregg County CODE Unit, Longview Police Department, and Gregg County Sheriff’s Office.
The operation resulted in the arrest of 18 of 20 defendants named in a 37-count indictment returned by a federal grand jury on Jan 21, 2015. According to the indictment, from at least January 2010 to the present, the defendants conspired to distribute methamphetamine in East Texas. The indictment also includes 14 charges of possession of a firearm during a drug trafficking crime, 20 charges of felon in possession of a firearm and two charges of possession of an unregistered firearm. Those arrested and named in the indictment are:
MICHAEL DAIN BONNER, 38-years-old,
DAVID FRANKLIN BECK, JR., 48-years-old,
MICHAEL DEWAYNE JONES, aka “Sleepy”, 27-years-old,
STEPHEN DWAYNE CANNADA, aka “Little Wood”, 40-years-old,
CYNTHIA BETH BRANTLEY, 56-years-old,
DEVON VERNON HARRIS, aka “Cali”, 37-years-old,
BRODERICK LAMAIL JONES, aka “BA”, 30-years-old,
KATLIN QUATEZ GODFREY, aka “Slim/KG”, 28-years-old,
TROY OWEN, JR., 34-years-old,
MARK CYRUS HIPP, 35-years-old,
CHRISTOPHER EVERETT BROOK, aka “Blue,” 40-years-old,
KEITH DEONDRAY YOUNG, aka “Tugg,” 34-years-old,
LARRY GENE KEEN, aka “Junior,” 37-years-old,
CARLA THOMAS HAWKINS, aka “Breeze,” 44-years-old,
COURTNEY BREANNE MCMULLEN, 25-years-old,
CHASE ANTHONY HAGLER, 31-years-old,
JESSICA MILLESON. 25-years-old, and
HEATHER REBECCA BECK, 45-years-old.All of the defendants are residents of the Gregg/Upshur County area. If convicted, the defendants face as much as life in federal prison.
This case is being investigated by ATF, DEA, Gregg County CODE Unit, Longview Police Department, and Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Richard Moore.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dominican Man Sentenced in Federal Court for Heroin Distribution in HazletonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Santiago Guerrero-Nova, age 31, formerly of Hazleton, Pennsylvania, was sentenced to 17 months, the length of time he has been in prison since his arrest for distributing heroin in Hazleton, Pennsylvania on August 28, 2013. Guerrero-Nova, who was not legally in the United States at the time of the offense, now faces deportation proceedings to the Dominican Republic, his native country.
According to United States Attorney Peter Smith, Guerrero-Novo previously pleaded guilty to a criminal information charging him with heroin distribution. The charges were the result of an investigation conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney John Gurganus prosecuted the case.
Detroit man sentenced on heroin chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Stacy Erwin Jones, 35, of Detroit, was sentenced to 30 months in federal prison for aiding and abetting the distribution of heroin.
On March 20, 2014, Jones, also known as “Red,” sold heroin to a confidential informant at a store in the Charleston Town Center Mall. Officers executed a search warrant at Jones’ residence, where they seized around 10 grams of heroin. Jones had more than $3,000 on his person when he was arrested following the warrant execution.
Jones previously served 13 years in prison for a 1999 assault with intent to murder conviction in Detroit.
United States District Judge Thomas E. Johnston imposed the sentence.
The case was investigated by the Metropolitan Drug Enforcement Networking Team. Assistant United States Attorney Joshua C. Hanks was in charge of the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communications across the Southern District.
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Detroit man pleads guilty to heroin chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Steven Adams, 47, of Detroit, pleaded guilty to possession of heroin with the intent to distribute.
Adams admitted that on June 16, 2014, he travelled by Greyhound bus from Detroit to Charleston with heroin intended for delivery to another person. He said he was approached by an individual in Detroit, who offered him money to carry the drugs to someone else in West Virginia. Adams was arrested at the bus station, following an encounter with agents of the Metropolitan Drug Enforcement Network Team (MDENT).
Adams faces up to 20 years in federal prison, and a $1 million fine. He is scheduled to be sentenced May 11, 2015.
United States District Judge Thomas E. Johnston presided over the plea hearing.
The case is being investigated by MDENT. Assistant United States Attorney John Frail is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of heroin and opiate painkillers in communities across the Southern District.
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Detroit man pleads guilty to drug trafficking chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Terrance Wilson, 25, of Detroit, pleaded guilty to interstate travel in aid of drug trafficking.
Wilson admitted that he transported heroin from Detroit to Charleston multiple times in November and December 2014, with the intent to carry out an ongoing business enterprise involving the distribution of the drugs in the Charleston area for profit.
On four occasions between Dec. 1-4, 2014, Wilson provided heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team.
Wilson faces up to five years in federal prison, three years of supervised release and a $250,000 fine. He is scheduled to be sentenced May 13, 2015.
United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
The case is being investigated by MDENT. Assistant United States Attorney Steven I. Loew is in charge of the prosecution.
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Defendant Sentenced to 10 Years in Federal Prison on Methamphetamine Distribution ConvictionRead the Press Release
AMARILLO, Texas — Hugo Gomez-Barrientos, most recently of Hereford, Texas, was sentenced this week by U.S. District Judge Mary Lou Robinson to 120 months in federal prison on a methamphetamine distribution conviction, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Gomez-Barrientos, 46, pleaded guilty in November 2014 to an indictment charging one count of possession with intent to distribute 50 grams or more of methamphetamine. He has been in custody since his arrest at his residence on September 25, 2014, after the return of that indictment.
According to documents filed in the case, on May 7, 2013, Gomez-Barrientos agreed to meet with an undercover Drug Enforcement Administration (DEA) Task Force Officer (TFO), at a convenience store in Hereford, and sell him a quarter pound of methamphetamine for $3,750 and front him an additional quarter pound to be paid for later. Gomez-Barrientos changed the meeting place from the convenience store to a cattle truck wash.
After the undercover TFO arrived at the cattle truck wash, Gomez-Barrientos walked up to his vehicle and the sale took place. The undercover TFO advised he would pay him the balance owed for the additional quarter pound of methamphetamine on the next buy.
Approximately one month later, on June 5, 2013, the undercover TFO called Gomez-Barrientos to discuss the remaining balance he owned. They agreed to meet at Gomez-Barrientos’s ranch. The undercover TFO advised that the prior amount of methamphetamine was short of the quarter pound and the undercover TFO and Gomez-Barrientos agreed that the undercover TFO would pay $3,000 for it.
The DEA, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety (DPS) investigated. Assistant U.S. Attorney Joshua Frausto prosecuted.