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Thursday 29 January 2015
Nutritional Supplement Chain Reaches Settlement in Connection with Drug DiversionRead the Press Release
BOSTON – The United States reached a civil settlement yesterday with Performance Nutrition, a Seekonk, Mass.-based business that sells nutritional supplements online and in retail stores in Massachusetts, New Hampshire, and Rhode Island, in connection with civil drug diversion allegations.
Based on facts developed in the course of the investigation, the government contended that Performance Nutrition violated the Combat Methamphetamine Epidemic Act of 2005 in connection with its sale of anti-asthma products containing ephedrine, a chemical that can be used to make methamphetamine. Specifically, the government alleged that Performance Nutrition failed to self-certify with the DEA for online sales, failed to send the DEA monthly reports of its sales, made online sales exceeding the maximum amount of ephedrine permitted, failed to ask purchasers for photo IDs, maintained sale logbooks with incomplete information, and failed to train all its employees on the legal requirements for selling ephedrine products. Performance Nutrition has agreed to pay $60,000 in settlement of these claims.
“Sales of products containing ephedrine are subject to strict requirements because ephedrine can be used to manufacture methamphetamine,” stated United States Attorney Carmen M. Ortiz. “The mishandling of any chemicals used to manufacture meth, a highly addictive and dangerous illegal drug, is a serious offense which will be pursued by my office. We will continue to work with our law enforcement partners to ensure that retail and online sellers of products containing such chemicals abide by their legal obligations.”
“Methamphetamine can destroy communities and devastate the lives of the users,” stated Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division. “Ephedrine is a key component in the manufacturing of this dangerous drug. DEA, along with our law enforcement partners, will continue to investigate businesses that violate the Combat Methamphetamine Act of 2005.”
The announcement was made today by U.S. Attorney Ortiz and Acting DEA SAC Ferguson. The investigation was conducted by Diversion Investigators with the DEA, Boston Field Division. The case was handled by Assistant U.S. Attorneys Jessica Driscoll and Christine Wichers of Ortiz’s Civil Division.
Niagara Falls Woman Indicted on Structuring ChargesRead 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 a federal grand jury has indicted Georgina Fisher, also known as Georgina Baratta, 44, of Niagara Falls, NY, on charges of causing a financial institution to fail to file transaction reports. The charges carry a maximum penalty of five years in prison, a fine of $250,000 or both.Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that according to the complaint, on nine occasions between January 28, 2010 and February 8, 2010, Fisher traveled between various Western Union agents in Western New York and purchased four or five $500 money orders on each occasion. The defendant did so in order to avoid reporting requirements that are triggered by the purchase of more than $3,000 in money orders in one transaction or series of transactions.
The indictment is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, under the direction Special Agent-in-Charge Shantelle P. Kitchen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
New York and California Men Plead Guilty to Access Device FraudRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jervis
A. Hillaire, 25, of Menifee, California, and Gyadeen P. Ramdihall, 27, of Rosedale, New York,
pleaded guilty in U.S. District Court to conspiracy to commit access device fraud. An access
device is any card or account number that can be used to obtain money, goods, services, or any
other thing of value.According to court documents, on about September 4, 2013, Ramdihall, Hillaire and a
third person travelled from New York to Maine with 38 credit, debit and gift cards that were
counterfeit or fraudulently altered. In Maine, the three used cards to purchase gift cards and
electronic devices from vendors including, among others, Best Buy, Apple, Target and
Walmart. On October 10, 2013, an Ohio State Trooper stopped Ramdihall for speeding. Hillaire
was his passenger. A total of 17 fraudulent access device cards in Hillaire’s name were found in
the trunk of the vehicle under the spare tire. On January 24, 2014, the Biddeford Police stopped
Ramdihall near the Walmart store in Biddeford. Hillaire was again his passenger. Ramdihall was
arrested for driving with a suspended license; Hillaire was arrested for providing a false
identity. Police discovered eight fraudulent access device cards in Hillaire’s boot.The defendants face up to five years in prison, a $250,000 fine and full restitution. They
will be sentenced after the completion of presentence investigation reports by the U.S. Probation
Office.The investigation was conducted by the United States Secret Service, the Kittery and
Biddeford Police Departments and the Ohio State Police.New Orleans C.P.A. Pleads Guilty to Embezzling over $1.7 MillionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PAUL E. GARDNER, age 57, a resident of New Orleans, pled guilty today to wire fraud regarding an embezzlement scheme which took place during GARDNER’s employment with Clovelly Oil Co., L.L.C. (“Clovelly Oil”).
According to court documents, GARDNER operated an accounting, consulting, and tax preparation business under the name Paul E. Gardner, C.P.A. for the past thirty years. In October 2007, Clovelly Oil hired GARDNER as a part-time bookkeeper. GARDNER was responsible for recording the receipts and disbursements for Clovelly and preparing the royalty checks for Clovelly’s more than two-hundred owners. In addition, GARDNER handled the bi-weekly payroll for all of Clovelly’s employees and he was responsible for paying himself.
Beginning in August 2010, and continuing until his termination in May 2014, GARDNER embezzled $1,798,000 from Clovelly Oil by manipulating the bi-weekly payroll records of Clovelly. Every two weeks, GARDNER logged into Clovelly’s on-line bank accounting system using his username and password given to him so he could prepare Clovelly’s payroll and increased his bi-weekly compensation by sometimes as much as $20,000. GARDNER diverted the illegally obtained funds into bank accounts held by the defendant. According to the Bill of Information, GARDNER used the embezzled funds to satisfy gambling debts incurred at a New Orleans casino.
The maximum penalty for wire fraud is 20 years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. U.S. District Judge Nannette Jolivette Brown set sentencing on April 23, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Nevada Man Convicted of Producing Child Pornography in KalamazooRead the Press Release
GRAND RAPIDS, MICHIGAN – Riley Patrick Lively, 27, of Las Vegas, Nevada, was convicted Wednesday afternoon of child sexual exploitation after a two-day jury trial in federal court in Grand Rapids. The crime took place in Kalamazoo in 2009. Lively faces a minimum of 15 years and a maximum of 30 years in prison.
In April 2009, while visiting Robert Norwood-Charlier, in Kalamazoo, Michigan, Lively sexually assaulted a nine-year-old boy. Norwood-Charlier openly took pictures of the assault. The FBI discovered the evidence of Riley’s sexual assault in the course of investigating Norwood-Charlier for his own sexual exploitation of children. Norwood-Charlier is currently serving a 300-month federal sentence for producing and distributing child pornography. Lively was arrested in Las Vegas in February 2014 and has been held in custody since his arrest. Despite claims that he was the victim of “mind control” and that the pictures were fakes, the jury found Lively guilty after less than an hour of deliberations.
Lively’s sentencing will be before U.S. District Judge Robert J. Jonker on a date to be scheduled.
The investigation was conducted by the FBI. Assistant U.S. Attorneys Tessa K. Hessmiller and Jeanne F. Long prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
Nevada Man Convicted of Producing Child Pornography in KalamazooRead the Press Release
GRAND RAPIDS, MICHIGAN – Riley Patrick Lively, 27, of Las Vegas, Nevada, was convicted Wednesday afternoon of child sexual exploitation after a two-day jury trial in federal court in Grand Rapids. The crime took place in Kalamazoo in 2009. Lively faces a minimum of 15 years and a maximum of 30 years in prison.
In April 2009, while visiting Robert Norwood-Charlier, in Kalamazoo, Michigan, Lively sexually assaulted a nine-year-old boy. Norwood-Charlier openly took pictures of the assault. The FBI discovered the evidence of Riley’s sexual assault in the course of investigating Norwood-Charlier for his own sexual exploitation of children. Norwood-Charlier is currently serving a 300-month federal sentence for producing and distributing child pornography. Lively was arrested in Las Vegas in February 2014 and has been held in custody since his arrest. Despite claims that he was the victim of “mind control” and that the pictures were fakes, the jury found Lively guilty after less than an hour of deliberations.
Lively’s sentencing will be before U.S. District Judge Robert J. Jonker on a date to be scheduled.
The investigation was conducted by the FBI. Assistant U.S. Attorneys Tessa K. Hessmiller and Jeanne F. Long prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
Mountain Home Co-defendants Sentenced and Ordered to Pay over $500,000 in Restituion for Wire FraudRead the Press Release
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Charles Edward Elliott and Nicholas Krug, both of Mountain Home, Arkansas, were sentenced today on one count of Conspiracy to Commit Wire Fraud. Elliot, 81 years old was sentenced to 42 months of probation with the first 36 months being home confinement. Krug, age 64, was sentenced to 42 months in prison followed by three years of supervised release. Elliot and Krug were also ordered to pay restitution in the amount of $539,000.00 jointly and severally. The sentencing took place before the Honorable Timothy L. Brooks in the United States District Court for the Western District of Arkansas in Fayetteville.
United States Attorney Eldridge commented, “These two defendants swindled investors out of their hard-earned money, a crime that will not be tolerated in the Western District of Arkansas. With today’s sentence, justice has been served, and these two defendants have been held accountable for their abhorrent conduct. We remain committed to investigating and prosecuting fraudulent schemes that are designed to defraud unknowing victims.”
“Today's sentences demonstrate our resolve to put an end to fraud schemes such as those perpetuated by Elliot and Krug,” states David T. Resch, Special Agent in Charge, Little Rock Federal Bureau of Investigation, “We appreciate our partnership with the United States Attorney’s Office and will continue to work together to aggressively investigate and prosecute such violations.”
According to evidence presented at the trial, in early 2007, a California woman was approached by Elliott, who was a partner with Krug in a business called “Sovereign International”, regarding an investment opportunity. They claimed to be raising money for a trading program involving a large group of investors stating that the investment would pay interest of 10% per month for one year, and at the end of the year investors would get their principal investment back. The California woman, after receiving instructions, wired $500,000 to Sovereign International’s checking account. Bank records confirm that prior to that deposit, the account held only $201.26. With that deposit, Elliott and Krug made numerous payments to other investors and wrote a $50,000 check to Krug International, another company of Elliott and Krug’s. On April 19, 2007, only $9,232.23 remained in the Sovereign International account. On April 20, 2007, an individual from Mountain Home, who was solicited by Krug for the same investment opportunity, gave Sovereign International $100,000 check that was subsequently deposited into the Sovereign International account. Elliott and Krug used the Mountain Home person’s money to send the first 10% interest check to the California woman. Approximately $10,000 was sent to the California woman a year later. The principal investment amount of $500,000 was never returned.
Elliott and Krug were originally indicted by a Federal Grand Jury on October 30, 2013. They were convicted by Jury Trial on October 7, 2014.
This case was investigated by the Federal Bureau of Investigations. Assistant U.S. Attorneys’ Candace Taylor and 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
Monroe County Man Pleads Guilty to Federal Heroin Trafficking and Firearms ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man pleaded guilty today in United States District Court in Scranton, before Senior United States District Judge Edwin M. Kosik, to heroin trafficking and firearms charges.
According to United States Attorney Peter Smith, Joseph Crawford, age 41, of Marshalls Creek, pleaded guilty to the charges of possession with intent to distribute heroin and being a convicted felon in possession of firearms. Crawford and another man, Harry Rivera, age 39, of East Stroudsburg, were indicted by a grand jury in Scranton in November 2014. The charges stemmed from an incident on June 17, 2014, in Monroe County, in which investigators found approximately 97 grams of heroin within a hidden compartment in a vehicle in which Crawford and Rivera were travelling. In addition, police seized a Glock pistol and a Smith &Wesson rifle after a search of Crawford’s residence in Marshall’s Creek. Crawford, who was previously convicted of a felony offense, is prohibited by law from possessing a firearm.
The charges against Rivera are currently pending.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the Stroud Area Regional Police Department. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for all charges under the federal statutes is imprisonment for 30 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Mississippi Man Found Guilty of Aggravated Sexual Abuse of a Minor in Indian CountryRead the Press Release
Oklahoma City, Oklahoma – A federal court jury deliberated only about three hours today before finding IVAN BENNETT WILLIS, 22, from Choctaw, Mississippi, guilty of aggravated sexual abuse in Indian Country, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to evidence presented at trial, on September 22, 2013, Willis forcibly raped a minor female victim in a home in the White Eagle Indian community in Ponca City, Oklahoma. The trial lasted three days and the jury deliberated approximately three hours before finding Willis guilty. At sentencing, Willis faces a prison sentence of up to life in prison. A sentencing date will be set by the court in approximately 90 days.
These charges are the result of an investigation and efforts by the Federal Bureau of Investigation, the Bureau of Indian Affairs, the Choctaw Police Department, and the Ponca Tribal Police. The case was prosecuted by Assistant U.S. Attorney Rozia McKinney Foster.
Reference is made to court filings for further information.
Mesquite Man Faces up to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — A 20-year-old Mesquite, Texas, man appeared in federal court today before Chief U.S. District Judge Jorge A. Solis and pleaded guilty to one count of production of child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jeremiah Chayse Gardiner faces a statutory penalty of not less than 15 years or more than 30 years in federal prison and a $250,000 fine. Sentencing is set for May 20, 2015. Gardiner remains in federal custody.
According to plea documents filed in the case, an investigation into cybertips received on April 8, 2014, led a detective with the Mesquite Police Department to determine that Gardiner uploaded images of child pornography to a social networking application called Tumblr. On April 17, 2014, detectives with the Mesquite Police Department went to West Mesquite High School to speak with Gardiner and execute a search warrant on his cellphone.
Gardiner admitted uploading images of child pornography to Tumblr, and he further admitted inappropriately touching “Jane Doe #2,” when she was three-years-old. Based on those admissions, the detectives obtained and executed an arrest warrant and search warrant for Gardiner’s residence, and Gardiner was taken into custody.
An examination of Gardiner’s cell phone revealed several images of child pornography, taken with Gardiner’s phone, depicting “Jane Doe,” a two-year-old girl.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Mesquite Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Matson to Pay $1 Million for Molasses SpillsRead the Press Release
HONOLULU –Matson Terminals, Inc., a Hawaii corporation, was sentenced by U.S. Magistrate Judge Richard L. Puglisi today to pay a $400,000 fine plus restitution of $600,000 based on previously entered guilty pleas to two criminal charges of unlawfully discharging molasses into Honolulu Harbor. By the terms of the plea agreement filed in connection with the case, the restitution would be divided equally between the Waikiki Aquarium to support Coral Programs and Invasive Algae Clean-ups and Sustainable Coastlines Hawaii to inspire local communities to care for coastlines through beach clean-ups.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information provided to the court, Matson Terminals, which loaded molasses from storage tanks into ships in Honolulu Harbor, discharged approximately 233,000 gallons of molasses into the Harbor without authorization from at least September 9, 2013, continuing to September 10, 2013. Matson had been aware of a State of Hawaii Department of Transportation report dated July 31, 2012, that the pipeline from which the discharge occurred was leaking molasses. The discharge caused or contributed to the death of approximately 25,000 fish in the harbor.
The prosecution resulted from an investigation conducted by the Environmental Protection Agency. Assistant United States Attorneys Leslie E. Osborne, Jr. and Marshall H. Silverberg handled the prosecution.
Manderson Man Indicted for Sexually Abusing A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Jasper Chase Alone, age 28, was indicted on January 21, 2015. He appeared before U.S. Magistrate Judge Veronica Duffy on January 23, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years’ imprisonment and/or a $250,000 fine, a mandatory minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that in September 2014, at Manderson, Chase Alone engaged in a sexual act with a girl under the age of 16.
The charge is merely an accusation and Chase Alone is presumed innocent until and unless proven guilty.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Chase Alone was detained pending trial. A trial date has not been set.
Man Sentenced to Two Years in Prison for Defrauding River Boat Pilots in LouisianaRead the Press Release
Mark A. Hofmann of San Diego, California, was sentenced today to two years in prison for his role in an investment fraud scheme whereby Hofmann misappropriated more than $400,000 in investment funds of a Louisiana riverboat pilots association known as Bolivar Investors Group, LLC.
During a hearing before U.S. District Judge Dana M. Sabraw, Hofmann was also ordered to pay more than $400,000 in restitution to members of the riverboat pilots association – the victims of Hofmann’s white collar crime.
According to court documents, Hofmann solicited $3 million from Bolivar Investors Group, LLC, as part of a joint venture to allegedly develop office buildings next to a medical center in Covington, Louisiana. As part of their deal, Hofmann agreed to open a bank account in San Diego, California, in order to use the investment funds to pay project expenses. Hofmann promised the investors in Bolivar Investors Group, LLC that they would have access to the bank account and would be able to review the statements online. However, Hofmann, and his co-conspirator, Timothy Monahan, were the only signatories on the bank account, and were the only ones with access to the bank account details. To conceal his fraudulent scheme, Hofmann provided the riverboat pilots that invested through Bolivar Investors Group with falsified bank records and other fraudulent financial documents.
According to court documents and Hofmann’s admissions, rather than spend the money on project expenses, Hofmann misappropriated more than $400,000 of funds that belonged to Bolivar Investors Group, LLC, for his own personal use and expenses, which were unrelated to the land development deal. In addition, as mentioned during the sentencing hearing today, Hofmann also withdrew from the joint venture bank account more than $230,000 in cash and checks that he wrote to himself, which was also unrelated to the land deal.
During the sentencing hearing, two of the riverboat pilots from Louisiana told the Court that Hofmann’s fraud had destroyed personal relationships between generations of pilots dating back 100 years. The two pilots said the victims are constantly reminded each month of Hofmann’s fraud because they continue to pay monthly interest and principal on loans they had taken out to invest in the joint venture with Hofmann.
United States Attorney Laura E. Duffy said, “Today, justice was served on behalf of the riverboat pilots association in Louisiana, who placed their trust in Mr. Hofmann. We hope that this case serves as a deterrent to those raising capital for joint ventures who might seek to take advantage of their investors and misappropriate their funds.”
This case was investigated by the New Orleans Division of the Federal Bureau of Investigation and presented for prosecution to the U.S. Attorney’s Office in the Eastern District of Louisiana. The case was transferred to the Southern District of California for entry of the guilty plea and for sentencing.
Man Sentenced to Two Years in Prison for Defrauding River Boat Pilots in LouisianaRead the Press Release
SAN DIEGO –Mark A. Hofmann of San Diego, California, was sentenced today to two years in prison for his role in an investment fraud scheme whereby Hofmann misappropriated more than $400,000 in investment funds of a Louisiana riverboat pilots association known as Bolivar Investors Group, LLC.
During a hearing before U.S. District Judge Dana M. Sabraw, Hofmann was also ordered to pay more than $400,000 in restitution to members of the riverboat pilots association – the victims of Hofmann’s white collar crime.
According to court documents, Hofmann solicited $3 million from Bolivar Investors Group, LLC, as part of a joint venture to allegedly develop office buildings next to a medical center in Covington, Louisiana. As part of their deal, Hofmann agreed to open a bank account in San Diego, California, in order to use the investment funds to pay project expenses. Hofmann promised the investors in Bolivar Investors Group, LLC that they would have access to the bank account and would be able to review the statements online. However, Hofmann, and his co-conspirator, Timothy Monahan, were the only signatories on the bank account, and were the only ones with access to the bank account details. To conceal his fraudulent scheme, Hofmann provided the riverboat pilots that invested through Bolivar Investors Group with falsified bank records and other fraudulent financial documents.
According to court documents and Hofmann’s admissions, rather than spend the money on project expenses, Hofmann misappropriated more than $400,000 of funds that belonged to Bolivar Investors Group, LLC, for his own personal use and expenses, which were unrelated to the land development deal. In addition, as mentioned during the sentencing hearing today, Hofmann also withdrew from the joint venture bank account more than $230,000 in cash and checks that he wrote to himself, which was also unrelated to the land deal.
During the sentencing hearing, two of the riverboat pilots from Louisiana told the Court that Hofmann’s fraud had destroyed personal relationships between generations of pilots dating back 100 years. The two pilots said the victims are constantly reminded each month of Hofmann’s fraud because they continue to pay monthly interest and principal on loans they had taken out to invest in the joint venture with Hofmann.
United States Attorney Laura E. Duffy said, “Today, justice was served on behalf of the riverboat pilots association in Louisiana, who placed their trust in Mr. Hofmann. We hope that this case serves as a deterrent to those raising capital for joint ventures who might seek to take advantage of their investors and misappropriate their funds.”
This case was investigated by the New Orleans Division of the Federal Bureau of Investigation and presented for prosecution to the U.S. Attorney’s Office in the Eastern District of Louisiana. The case was transferred to the Southern District of California for entry of the guilty plea and for sentencing.
DEFENDANTS Case Number: 13CR4073-DMS Mark A. Hofmann Age: 57 CHARGESCount 1: Title 18, United States Code, Section 1343 – Wire Fraud -- statutory maximum sentence of 20 years’ custody, a maximum fine of $250,000, special assessment of $100, and a maximum term of supervised release of 3 years.
INVESTIGATING AGENCIESFederal Bureau of Investigation – New Orleans Division
U.S. Attorney’s Office for the Eastern District of Louisiana
U.S. Attorney’s Office for the Southern District of CaliforniaMan Convicted at Trial for Bank RobberyRead the Press Release
Contact Person: Nathan Williams (843) 727-4381
Charleston, South Carolina ---- United States Attorney William N. Nettles stated today that Leonard Riley III, age 32, of Charleston was convicted following a three day jury trial in federal court for his role in a bank robbery. Evidence presented during the trial established that Riley, along with a co-defendant, conspired to commit, and committed, a series of armed robberies that included a liquor store and three banks, in both the Charleston and Georgetown area, in late 2013 and early 2014. The last of the robberies occurred at the Citizen’s Bank in Georgetown, SC, on March 3, 2014. Using surveillance video from the bank, and information gathered from previous robberies, Georgetown Police Department Detectives were able to apprehend both defendants within hours of the Citizen’s bank robbery. At the time of arrest Detectives recovered money stolen from the robbery, some of the clothes worn during the robbery, and the guns used during the robbery, from the car defendants were driving. Riley’s co-defendant Ryan Bonneau, age 47, of Charleston, pled guilty prior to trial, and explained to the jury that, prior to the Citizen’s bank, he and Riley had robbed banks in both Charleston and Georgetown, as well as a liquor store in North Charleston, SC.
Riley was convicted of Conspiring to Commit Armed Bank Robbery (18 U.S.C. §371), Armed Bank Robbery (18 U.S.C. §2113) and Possession of a Firearm in Furtherance of a Crime of Violence (18 U.S.C. §924(c)). The Bank Robbery charge carries up to twenty five years imprisonment, the Conspiracy up to five years, and the Firearm charge carries a mandatory minimum five year consecutive sentence. United States District Court Judge David C. Norton oversaw the trial, and will impose sentence for both defendants at a later date.
The convictions were the result of an investigation conducted by the Georgetown Police Department, Federal Bureau of Investigation and Charleston Police Department. Assistant United States Attorneys Nathan Williams and Emmanuel Ferguson of the Charleston office prosecuted the case.Man Charged with Criminal TrespassRead the Press Release
United States Attorney Brendan V. Johnson announced that a man residing at the Winner Work Release Program in Winner, South Dakota, has been indicted by a federal grand jury for Criminal Trespass.
Steven Nichols, age 44, was indicted on January 21, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 26, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 1 year in custody and/or a $100,000 fine, 1 year of supervised release, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about January 16, 2015, Nichols, a non-Indian, knowingly committed the public offense of Entering or Refusing to Leave Property After Notice. He entered the Rosebud Sioux Indian Reservation, knowing he was not privileged to do so.
The charge is merely an accusation and Nichols is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Service. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Nichols was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Louisville Physician Pays $515,408.85 for Treating Patients with Misbranded Drugs and Fraudulently Charging MedicareRead the Press Release
LOUISVILLE, Ky. – A Louisville physician pleaded guilty this week in U.S. District Court to a criminal charge of treating patients with misbranded medications and was sentenced to a term of one year probation and ordered to pay restitution in the amount of $176,915.55 by U.S. Magistrate Judge Colin H. Lindsay, announced Acting United States Attorney John E. Kuhn, Jr.
Dr. Mark Heinicke pleaded guilty Tuesday, January 27, 2015, to a criminal information. Dr. Heinicke admitted to purchasing Rituxan, Actemra, Remicaid, Aclasta, Prolia, and Synvisc, among others, from foreign drug distributors based in the United Kingdom, from December 1, 2010, through April 19, 2012. The drugs originated outside the United States and were never approved by the U.S. Food and Drug Administration (FDA) for introduction into the United States. These are infusion and injectable medications used to treat cancer, rheumatoid arthritis, osteoarthritis and osteoporosis. The misbranded drugs were administered under Dr. Heinicke’s supervision.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and was investigated by the Office of Criminal Investigation for the U.S. FDA.
Further, in a separate civil agreement, Dr. Heinicke agreed to pay $338,493.30 in addition to the court ordered restitution to settle certain claims brought against him by the United States on behalf of the Office of Inspector General of the Department of Health and Human Services (OIG-HHS).
According to the civil settlement agreement, between December 1, 2010, and April 19, 2012, Dr. Heinicke purchased foreign, non-FDA approved products (Rituxan, Actemra, Remicaid, Aclasta, Prolia, and Synvisc) at a cost significantly less than FDA-approved versions. Dr. Heinicke used these foreign, non-FDA approved products on Medicare recipients and did not inform those recipients that they were receiving non-FDA approved products. Dr. Heinicke thereafter submitted or caused to be submitted false claims to Medicare, seeking payment for the products as if they were FDA-approved versions and seeking payment for the administration of these products, in violation of the False Claims Act. Medicare made payments to Dr. Heinicke based upon these claims.
The civil case was handled by Assistant United States Attorney Benjamin Schecter, with assistance from the Office of Criminal Investigations for the FDA.
The claims settled by this civil agreement are allegations only; there has been no determination of liability.
Local Non-Profit Businessman Charged in Alleged Fraud SchemeRead the Press Release
HOUSTON - Jesse Dunn, 56, of Houston, is set to appear in federal court following the return of an eight-count indictment alleging a fraud scheme in connection with a major disaster, announced U.S. Attorney Kenneth Magidson.
The indictment was returned Wednesday, Jan. 28, 2015. Dunn surrendered to federal authorities this morning and is set to make his initial appearance today before U.S. Magistrate Judge George Hanks at 10:00 a.m.
The eight-count indictment alleges one count of participating in a fraud scheme in connection with a major disaster, one count of making a false statement and six counts of false representations in connection with a major disaster.
Dunn was the president of Aldine Community Care Center Inc. (ACCC), a registered Texas non-profit corporation created on April 29, 2004, according to the indictment. He also served as the president or director of several other Texas non-profit corporations, such as Paraclete Church Ministries Inc.
According to the allegations, Dunn falsified numerous documents to the Small Business Administration (SBA) in order to receive disaster relief funds on behalf of ACCC from approximately September 2008 to December 2010.
Hurricane Ike made landfall on the Texas Gulf Coast on Sept. 13, 2008, at which time former President George W. Bush declared the counties in and around Houston a major disaster area under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Shortly thereafter, Dunn allegedly applied for a loan on two of his properties for disaster relief funds.
The indictment alleges Dunn submitted false invoices to the SBA which resulted in the disbursement of $1,300,800 that was to be used for the repair or replacement of real estate, inventory, supplies, machinery and equipment damaged during the declared disaster. However, Dunn allegedly used a significant portion of the proceeds for his own personal use.
He faces up to 30 years in federal prison and a possible $250,000 fine for each of the false representations charges and the fraud scheme in connection with a major disaster. If convicted of the false statement charge, he will also face up to five years in prison and another $250,000 fine.
The investigation leading up to the arrest was conducted by the SBA and the FBI. Assistant U.S. Attorneys Suzanne Elmilady and Andrew Leuchtmann are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Local Merchants Sentenced for Distribution of Designer DrugsRead the Press Release
LITTLE ROCK - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and David Downing, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), announced that on January 28, 2015, Amjad Kattom, 37, and Fadi Qtouf, 29, were sentenced after pleading guilty to Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances and Analogues of Controlled Substances. The charges stem from Project Synergy, the largest coordinated law enforcement strike against designer drugs, specifically synthetic cannabinoids (often referred to as “K2” or “Spice”) and synthetic cathinones (often referred to as “bath salts”). Kattom and Qtouf, who are brothers, were two of the lead defendants in the case. Kattom was sentenced to 70 months imprisonment, 3 years of supervised release, a $5,000 fine, and a $100 special assessment. Qtouf was sentenced to 60 months imprisonment, 3 years of supervised release, a $5,000 fine, and a $100 special assessment.
The investigation was conducted by the DEA - Tactical Diversion Squad composed of DEA Special Agents, DEA Diversion Investigators, and Task Force Officers from: Little Rock Police Department, Conway Police Department, Jefferson County Sheriff’s Office, and Pine Bluff Police Department. Also taking part in the investigation was Homeland Security Investigations; the Internal Revenue Service - Criminal Investigation Division including Task Force Officers from Benton Police Department and Pulaski County Sheriff’s Office; with the United States Postal Inspectors and the Little Rock Police Department. Assisting agencies were the Arkansas National Guard; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, and Firearms; the United States Secret Service; the Arkansas State Police and the Arkansas Tobacco Control Board.
For more information on this case, see previous news release at: http://www.justice.gov/usao/are/news/2013/June/Synergy_kattom_complaint_DEA_062613.html
Lexington Man Sentenced to 175 Months for Identity Theft and Tax Fraud ConspiracyRead the Press Release
LEXINGTON, KY - A Lexington, Ky., man, who previously admitted to leading a conspiracy to use stolen identities to file false federal income tax returns, has been sentenced to 175 months in prison.
On Wednesday, U.S. District Judge Danny C. Reeves sentenced 52-year-old David C. Pierce for wire fraud, aggravated identity theft, and conspiring to defraud the United States. Judge Reeves ordered $636,379 to be paid in restitution; of that amount, Pierce and another co-defendant are jointly and severally liable for $107,500. Under federal law, Pierce will have to serve at least 85 percent of his prison sentence.
Pierce previously pleaded guilty and admitted that he devised a scheme to obtain federal income tax refunds by fraud. Pierce accomplished this by creating false tax returns in the names of other members of his conspiracy and other individuals whose identities were stolen and supplied to him by his co-conspirators.
Pierce invented details about the lives of these taxpayers, including where they lived and worked, their incomes, and their expenses. He then filed these returns with the Internal Revenue Service (IRS), requesting that the tax refunds be directed to addresses and bank accounts belonging to him and other members of the conspiracy. During a two-year span, Pierce fraudulently claimed over $3.7 million in tax refunds and received over $600,000 in payments from the Internal Revenue Service.
Three of Pierce’s co-conspirators have also been sentenced for their roles in the conspiracy. Timothy Richard Smith, 51, was sentenced on Wednesday to 70 months imprisonment. Joyce Ann Estes, 44, received 51 months in prison on January 22, 2015. Stephen Lane Woodrum, 24, was sentenced to 48 months imprisonment on January 21, 2015. The final co-conspirator, Dwayne Ray Smith, has pleaded guilty to wire fraud, and aggravated identity theft, and conspiracy to defraud the United States. He is scheduled to be sentenced on February 11, 2015.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Christopher Henry, Special Agent in Charge, Internal Revenue Service, jointly announced the sentences.
The investigation was conducted by the Internal Revenue Service Office of Criminal Investigation. Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith prosecuted this case on behalf of the federal government.
Leader of painkiller distribution network sentenced to more than 8 years in prisonRead the Press Release
WHEELING, WEST VIRGINIA – Brian Schultz, 38, of Triadelphia, West Virginia, was sentenced today to 97 months in prison for coordinating and operating a Detroit, Michigan to Wheeling, West Virginia prescription painkiller and cocaine distribution ring, United States Attorney William J. Ihlenfeld, II, announced today.The U.S. Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, discovered that Schultz procured large quantities of prescription pills from groups in Detroit, Michigan and Northern Ohio. He then orchestrated an extensive network of associates to redistribute the pills throughout the Ohio Valley.
Schultz admitted his role in distributing oxycodone, cocaine, and buprenorphine in November 2014 when he pled guilty to one count of “Conspiracy to Distribute Schedule II and Schedule III Controlled Substances.” He was also ordered today to forfeit approximately $70,000.00 in U.S. currency and to pay a money judgment of $30,000.00.
Additionally, Buddy Robert Salem, Jr., 33, of Wheeling, was sentenced today to 30 months in prison. Salem routinely sold oxycodone pills provided by Schultz. Salem was discovered in possession of oxycodone in January 2014. He pled guilty in June 2014 to one count of “Aiding and Abetting the Possession with Intent to Distribute Oxycodone.”
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Leader of Violent Drug Distribution Ring Sentenced to More Than 20 Years in PrisonRead the Press Release
More Than 30 Defendants Charged and Convicted During Investigation
Brice N. Marchbanks a/k/a Bear, 32, of Nashville, Tennessee, was sentenced yesterday to more than 20 years in federal prison for his role as the leader of a long- running, violent crime and drug distribution conspiracy, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Marchbanks was convicted of all charges against him, including drug conspiracy, maintaining a drug house, possessing firearms in furtherance of drug crimes, and distributing drugs to a 14 year-old, after a week-long jury trial in September 2014. Senior Judge John T. Nixon sentenced Marchbanks to the maximum allowed under the federal sentencing guideline range, to reflect the seriousness of the crimes and to protect the public.
Marchbanks’ drug operation was uncovered as part of an investigation into various Rollin’ 60 Crips gang members who were committing armed robberies of suspected drug dealers, under the belief that the crimes would not be investigated fully and that the targeted victims would not cooperate with law enforcement.
According to the proof at trial, Marchbanks was the target of such a robbery by other gang members and was in fact shot during that robbery. When questioned by police, Marchbanks falsely claimed that the robbery was not drug-related. The investigation, however, showed that Marchbanks was running a drug house in the Creekwood Drive area of Nashville and was using armed minors to guard the house.
The trial also included proof that Marchbanks wrongly suspected another Rollin’ 60 Crips gang member of having participated in that robbery, and solicited the murder of that person. A 15 year- old and a person who is still unidentified then shot the gang member whom they suspected. The wounded gang member survived and the investigation determined that he was not involved in the robbery of Marchbanks.
Marchbanks is the final defendant to be tried in the case, which began in 2009 and resulted in more than 30 defendants being charged with drug crimes, firearms and other offenses. All of the defendants in this case have now been convicted, including more than five gang members who held the status of “OG” (“Original Gangsta”), the highest rank available in Tennessee.
The investigation was conducted by the FBI, the ATF and the Metropolitan Nashville Police Department. Assistant United States Attorneys Sunny A.M. Koshy and Louis Crisostomo prosecuted the case.
Leader of Hostage Taking Conspiracy Gets Life in Federal PrisonRead the Press Release
HOUSTON – The leader and six others involved in a hostage taking conspiracy that left victims in deplorable conditions have all been ordered to federal prison as a result of their criminal actions, announced United States Attorney Kenneth Magidson
A Houston federal jury convicted Mexican national Samuel Castro-Flores, aka “Chame” or “Chamuco,” 42, March 6, 2014, on 18 counts to include conspiracy to commit hostage taking, hostage taking and other charges involving smuggling aliens and firearms. The jury found him guilty of one count of conspiracy to commit hostage taking, five counts of hostage taking, one count of conspiracy to harbor illegal aliens, five counts of harboring illegal aliens, one count of being an alien illegally present in the U.S., one count of conspiracy to transport illegal aliens, two counts of transportation of illegal aliens, as well as using and carrying a firearm in furtherance of a crime and brandishing that firearm. The verdict was returned following a two-week trial and only an hour of deliberation. At the time he committed these crimes Castro-Flores was living illegally in the United States and was also on supervised release for a 2009 federal alien smuggling conviction.
Today, U.S. District Judge Gray Miller, who presided over the trial, sentenced Castro-Flores, along with six others also convicted in relation to the conspiracy. Castro-Flores was ordered to serve life in prison plus an additional seven years for brandishing a firearm during the commission of the hostage taking offenses. Judge Miller also revoked his supervised release from the 2009 case and ordered he serve an additional two years in prison for that offense. Six other defendants were also sentenced today. Virgilio De La Torre-Santana was ordered to serve 360 months, while Joshua Andrew Carbajal received a 240-month-term of imprisonment. Jobs Solis-Benito, Emmanuel Rivera-Abarca, Adauto Aguilar-Lara and Marco Garcia-Perez were each sentenced to respective terms of 97, 38, 36 and 31 months in federal prison. With the exception of Carbajal, who is from Alice, the remaining defendants are illegal aliens and expected to face deportation proceedings following release from prison.
At the hearing today, the court also heard from a female victim who was sexually abused by members of the conspiracy while being held hostage by Castro-Flores and his co-defendants. In handing down the sentences, Judge Miller noted the deplorable conditions to which the alien hostages were subjected as well as the large scope of the hostage taking and alien smuggling organization led by Castro-Flores.
Judge Miller also ordered all defendants today to pay restitution in the amount of $38,130, which represented the amount of money the group extorted from the families and friends of the alien hostages.
The charges in the case stem from an investigation that began in mid-August 2012. Two illegal aliens had been smuggled into the country and their family members began to receive extortion calls demanding money for their release.
On Sept. 7, 2012, agents executed a search warrant at a residence on Amblewood Drive in Houston and encountered 26 illegal aliens, at least two of whom were juveniles, being held hostage inside the residence. According to the victim aliens, upon arrival in Houston they were forced to undress and informed they had been “sold” and would not be released until family members paid for their release. Victims reported they were held in their underwear, in locked rooms with boarded up windows and in deplorable conditions. The victims also indicated they were guarded by men constantly armed with a handgun. Some victims said they were threatened with harm or death if payment was not received.
The evidence at trial showed Castro-Flores was the leader of the organization which held these aliens hostage and extorted their families for thousands of dollars before their release. The evidence also demonstrated Castro-Flores took extensive steps to avoid being detected by law enforcement. For example, he asked witnesses to help him present a false story that he was simply a repairman who happened to be at the Amblewood residence on one occasion to fix the air-conditioning.
An air-conditioning repair company owner in Houston reported that he once employed Castro-Flores as a helper in his business but fired him after learning he was involved in smuggling aliens. He also testified Castro-Flores later tried to use him to present a false impression to law enforcement that he was only involved in the air-conditioning business.
Prior to committing the offenses in this case, Castro-Flores was convicted of conspiracy to harbor aliens in the Southern District of Texas in July 2009 and subsequently deported in January 2011. He re-entered the United States after his deportation and was arrested in this case on Dec. 5, 2012, in Houston. Before his trial, Castro-Flores pleaded guilty to illegal re-entry, one of the charges from the indictment in the current case.The investigation leading to the charges in this case was conducted by Homeland Security Investigations in Houston, Washington, D.C., and Virginia along with the Houston Police Department. Assistant U.S. Attorneys Casey N. MacDonald and Arthur R. Jones prosecuted the case.
Lapwai Man Sentenced for Making False Statements to a Federal Official and Failing to AppearRead the Press Release
COEUR D'ALENE - Delbert Daniel George, 31, of Lapwai, Idaho, was sentenced today to 57 months in prison followed by three years of supervised release for making false statements to a federal official and failing to appear in court, U.S. Attorney Wendy J. Olson announced. Visiting U.S. District Judge Fremming Nielsen ordered George to spend 36 months in prison for lying to federal agents and a consecutive 21 months for George’s failure to appear for sentencing on that charge.
“The consecutive sentences demonstrate that failing to appear is a serious matter,” said Olson. “Respect for the law, and for the courts, are the cornerstone of a civilized society. My office will continue to prosecute those who obstruct justice or fail to abide by the court's directives.”
The case was investigated by Federal Bureau of Investigation (FBI) and Nez Perce Tribal Police.
LaplaceWoman Sentenced for Misprision of a Felony in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MECHELLE STANTON WOODS, age 44, of Laplace, was sentenced today for her role in a conspiracy to defraud the Gulf Coast Claims Facility (“GCCF”) in the aftermath of the BP oil spill.
U.S. District Judge Nannette Jolivette Brown sentenced WOODS to one year probation.
The GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion in the Gulf of Mexico. The GCCF required individuals to verify loss of income. According to court documents, WOODS assisted with preparing and electronically submitting fraudulent claim forms, for her co-conspirators who recruited claimants, falsely representing the claimants were employed in the commercial fishing industry at the time of the oil spill. WOODS knew the claims were fraudulent, but she did not report it to law enforcement.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (“NCDF”), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected], or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U. S. Attorneys Julia K. Evans and Theodore R. Carter, III were in charge of the prosecution.
Kankakee Man Pleads Guilty to Marijuana Growing Operation, Filing False Tax Returns and Making False Statement to BankRead the Press Release
Urbana, Ill. – A Kankakee, Ill., man, David Aaron Neblock, 37, entered pleas of guilty today to possession with intent to distribute more than 100 marijuana plants; filing false income tax returns; and making a false statement to a bank, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. At today’s hearing, U.S. Magistrate Judge David G. Bernthal granted the government’s motion for Neblock’s detention and the defendant was taken into the custody of the U.S. Marshals Service. Sentencing is scheduled for June 1, 2015, before U.S. District Judge Sue E. Myerscough in Springfield.
According to the factual basis set forth in the plea agreement, in July 2012, agents of the Kankakee Area Metropolitan Group (KAMEG) executed a search warrant at a commercial building at 364 S. Schuyler Ave., Bradley, Ill. Inside the building, agents recovered 759 marijuana plants in three rooms. The plants, at various stages of growth, were grown under multiple artificial light ballasts, with electric timers that regulated fans, lights and irrigation systems that supplied water and growth enhancement nutrients to the plants. Agents would testify that the approximate value of the 759 hydroponic cannabis plants is $3,036,000.
In addition, Neblock admitted that he underreported his income for tax years 2010, 2011, and 2012, for an estimated total of $236,936, with tax due and owing of $52,128. Further, Neblock admitted that in March 2009, he submitted a false home loan application requesting $157,183 to purchase a residence at 3163 River Road, Kankakee. In the application, Neblock falsely claimed that he was employed at various businesses and had received an inheritance.
According to terms of the plea agreement, the government and the defendant agree that the appropriate sentence is a term of imprisonment between 60 and 71 months. Further, Neblock agrees to pay the $52,128 in additional tax due and owing to the Internal Revenue Service, and agrees to the forfeiture of property, 3163 River Road, Kankakee, Ill, currently subject to a complaint for forfeiture in proceedings in circuit court in Kankakee County, as property that was used to facilitate or was paid for by proceeds of illegal activity.
The case is being prosecuted by Supervisory Assistant U.S. Attorney Ronda H. Coleman. The charges are the result of investigation by Kankakee Area Metropolitan Group, “KAMEG”; Illinois State Police; Internal Revenue Service Criminal Investigation; and the Federal Deposit Insurance Corporation, Office of Inspector General, with assistance from the Kankakee State’s Attorney’s Office.
Jury Convicts Man of Transporting Methamphetamine from Texas to TulsaRead the Press Release
TULSA, Okla.—Following a three-day trial, a federal jury found Alejandro Cabrera Charre, 23, guilty of conspiring to distribute and possess with intent to distribute methamphetamine, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The Superseding Indictment alleged that on October 18, 2014, Alejandro Charre and his uncle, Juan Pablo Charre, transported approximately four pounds of methamphetamine by car from Texas to Tulsa. Following a traffic stop, Tulsa Police Department officers discovered the methamphetamine hidden in a secret compartment in their vehicle.
Juan Pablo Charre pleaded guilty on January 5, 2015, to one count of possessing over 50 grams of methamphetamine with intent to distribute. Alejandro Charre went to trial on January 26, 2015. Trial testimony revealed that Alejandro Charre conspired with his uncle to bring the four pounds of methamphetamine to Tulsa. The trial testimony further revealed that the value of the methamphetamine was at least $46,000. On January 28, 2015, the jury found Alejandro Charre guilty.
This case was investigated by the Tulsa Police Department’s Special Investigations Division and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Neal C. Hong and Timothy L. Faerber.
(U.S. v. Alejandro Cabrera Charre)
Jenison Woman Pleads Guilty to Wire Fraud SchemeRead the Press Release
Renata Nicole Annese stole over $800,000.00 in a credit card fraud scheme
GRAND RAPIDS, MICHIGAN – Renata Nicole Annese, 39, of Jenison, Michigan, pled guilty on June 29 in U.S. District Court for the Western District of Michigan to one count of wire fraud as detailed in an indictment returned on November 12, 2014, U.S. Attorney Patrick Miles announced today. Annese agreed that she will pay restitution of approximately $872,000.00 and that she will forfeit her equity interest in her personal residence in Jenison, Michigan, because she used the fraud to make her mortgage payments.
“Deterring fraudulent conduct through vigorous prosecution of those who take advantage of others remains an important priority of this office. The repeated use of interstate wire transmissions to steal nearly a million dollars and to contribute to this victim’s decision that he had to sell his business makes this case especially appropriate for federal prosecution,” said U.S. Attorney Miles.
From October 2006 until April 2013, Annese used interstate wires to defraud the former owner of the Sleep Inn hotel in Allendale, Michigan, of nearly a million dollars. Annese did so by regularly accessing the Internet so that she could edit data related to the hotel’s credit card sales. Annese then inserted her own personal credit card and bank debit card numbers on the payment side of many of those transactions. This caused the hotel customers’ cards to be charged, but directed the customers’ banks to send the payments to Annese’s credit and debit cards, instead of to the hotel’s bank account. Defendant concealed her fraud by pairing her credit or bank debit card numbers with names and charge amounts actually associated with real hotel customers. This made it appear as if those customers were receiving a credit back to their cards,
when in reality Annese was receiving the payments. The former owner of Sleep Inn sold the hotel in 2013 because of its struggling financial performance and did not learn of Annese’s fraud until shortly after the sale.“Defendant Annese repeatedly used the Internet to siphon funds intended for her employer and divert them illegally to her own bank accounts,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “As reflected in this case, there are always very real victims on the other end of financial fraud crimes. The FBI remains committed to deterring this type of conduct and bringing justice to those who perpetrate fraudulent financial schemes in violation of federal law.”
Annese will be sentenced on May 18, 2015, at which time she will face up to 20 years’ imprisonment and a fine of up to $250,000.00.
The Federal Bureau of Investigation is conducting the investigation and Assistant United States Attorney Ronald M. Stella is prosecuting the case.
Jenison Woman Pleads Guilty to Wire Fraud SchemeRead the Press Release
Renata Nicole Annese stole over $800,000.00 in a credit card fraud scheme
GRAND RAPIDS, MICHIGAN – Renata Nicole Annese, 39, of Jenison, Michigan, pled guilty on June 29 in U.S. District Court for the Western District of Michigan to one count of wire fraud as detailed in an indictment returned on November 12, 2014, U.S. Attorney Patrick Miles announced today. Annese agreed that she will pay restitution of approximately $872,000.00 and that she will forfeit her equity interest in her personal residence in Jenison, Michigan, because she used the fraud to make her mortgage payments.
“Deterring fraudulent conduct through vigorous prosecution of those who take advantage of others remains an important priority of this office. The repeated use of interstate wire transmissions to steal nearly a million dollars and to contribute to this victim’s decision that he had to sell his business makes this case especially appropriate for federal prosecution,” said U.S. Attorney Miles.
From October 2006 until April 2013, Annese used interstate wires to defraud the former owner of the Sleep Inn hotel in Allendale, Michigan, of nearly a million dollars. Annese did so by regularly accessing the Internet so that she could edit data related to the hotel’s credit card sales. Annese then inserted her own personal credit card and bank debit card numbers on the payment side of many of those transactions. This caused the hotel customers’ cards to be charged, but directed the customers’ banks to send the payments to Annese’s credit and debit cards, instead of to the hotel’s bank account. Defendant concealed her fraud by pairing her credit or bank debit card numbers with names and charge amounts actually associated with real hotel customers. This made it appear as if those customers were receiving a credit back to their cards,
when in reality Annese was receiving the payments. The former owner of Sleep Inn sold the hotel in 2013 because of its struggling financial performance and did not learn of Annese’s fraud until shortly after the sale.“Defendant Annese repeatedly used the Internet to siphon funds intended for her employer and divert them illegally to her own bank accounts,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “As reflected in this case, there are always very real victims on the other end of financial fraud crimes. The FBI remains committed to deterring this type of conduct and bringing justice to those who perpetrate fraudulent financial schemes in violation of federal law.”
Annese will be sentenced on May 18, 2015, at which time she will face up to 20 years’ imprisonment and a fine of up to $250,000.00.
The Federal Bureau of Investigation is conducting the investigation and Assistant United States Attorney Ronald M. Stella is prosecuting the case.
Japanese Man Sentenced for Attemtping to Export Sensitive Military EquipmentRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Iteru Masui, 30, of Japan, who was convicted of attempting to export and send from the United States AN/PRC-152 radios, contrary to the Arms Export Control Act, was sentenced to 30 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that between April 30 2013 and May 9, 2013, Masui purchased what he believed were two AN/PRC-152 handheld military radios manufactured by the Harris Corporation in Rochester, NY. The radio is controlled for export by the United States Munitions List, and is not available for purchase by the public. The defendant’s effort to illegally export the radios was discovered and then stopped by special agents of the Department of Homeland Security.
The sentencing is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
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 Johnston in Great Falls on January 29, 2015, and entering pleas of Not Guilty were:
- JACK ANTHONY KEGG, a 46-year-old resident of Alexandria, Minnesota, appeared on charges of possession of child pornography. If convicted of the most serious charge contained in the indictment, KEGG faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Montana Division of Criminal Investigation. PACER Case Reference: 15-4
Appearing before U.S. Magistrate Judge Ostby in Billings on January 28, 2015, and entering pleas of Not Guilty were:
- LAWRENCE ALEX FOSTER, JR., a 62-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, FOSTER faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference: 15-4
- SELENA LITTLE OLD MAN., a 25-year-old resident of Lame Deer, appeared on charges of assault resulting in serious bodily injury. If convicted of the most serious charge contained in the indictment, LITTLE OLD MAN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference: 15-7
Appearing before U.S. Magistrate Judge Lynch in Missoula on January 27, 2015, and entering pleas of Not Guilty were:
- DAN CALVERT WALLEN, a 54-year-old resident of Big Fork, appeared on charges of unlawful taking of a threatened species. If convicted of the most serious charge contained in the indictment, WALLEN faces 6 months in prison and $25,000 in fines. The case was investigated by U.S. Fish and Wildlife Service. PACER Case Reference: 14-45
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.
Hugo Man Sentenced to 39 Months for Assault in Indian CountryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that TRAVIS PAUL LINDSEY, age 24, of Hugo, Oklahoma, was sentenced to 39 months imprisonment, followed by 3 years of supervised release for Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151 and 1152. LINDSEY was also ordered to pay $16,087.20 in restitution.
The charges arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The defendant pled guilty in November, 2014.
The Information alleged that on or about October 4, 2014, within the Eastern District of Oklahoma, within Indian country, the defendant, did knowingly and intentionally assault T.B., an Indian, with intent to cause bodily harm, by striking him with a dangerous weapon.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Dean Burris represented the United States.
Houston Man Sentenced for Conspiring to Steal from Home Equity Lines of Credit of Unsuspecting VictimsRead the Press Release
HOUSTON – Obinna Gregory Okoro, 25, of Houston, has been ordered to prison after conspiring to use personal identifiers of victims to create fake bank accounts online, link those accounts to existing bank accounts and drain them of the funds, announced United States Attorney Kenneth Magidson. Okoro pleaded guilty to one count of conspiring to commit bank fraud, one count of engaging in computer fraud and one count of aggravated identity theft Sept. 3, 2014.
Today, U.S. District Judge Nancy Atlas, who had accepted the plea ordered Okoro to serve 33 months for the conspiracy and computer fraud charges and a consecutive 24 months for the aggravated identity theft to be served consecutively for a total 57- month-term of imprisonment. He will also be required to serve three years of supervised release following completion of that prison term. Judge Atlas also ordered restitution in the amount of $455,686.39.
According to his plea agreement, in September 2013, Okoro and his co-conspirators stole $537,681 from PNC Bank N.A. Okoro and others created a fraudulent account at PNC Bank using the a victim’s personal identifiers, which they linked to the victim’s home equity line of credit (HELOC) account. They also posed as the victim to call PNC Bank in order to learn more about the accounts, order checks and increase the daily withdrawal limit. They accessed these accounts online to fraudulently transfer a total of $537,681 from the victim’s HELOC account to the account they created. From there, they withdrew and transferred much of this money.
Okoro’s plea agreement also indicates that in April 2014, Okoro and his co-conspirators stole money from a bank account jointly held by two victims. Okoro and co-conspirators used the victims’ personal identifiers to fraudulently open a bank account online at Commerce Bank N.A., which was linked to a legitimate account owned by the victims.
Posing as one of the victims, they called Commerce Bank. When the bank asked for personal identifiers to authenticate their identity, Okoro and his co-conspirators were able to provide the victims’ name, date of birth, Social Security number, direct deposit account number and mother’s maiden name. They then transferred money from the victims’ legitimate account to the fraudulent account that they created and withdrew this money. Altogether, Okoro and his co-conspirators fraudulently transferred about $25,027 from the victims’ account to the fraudulent Commerce Bank account they created. From there, Okoro and his co-conspirators withdrew (or spent in debit card transactions) approximately $21,463.04.Okoro has admitted he used some of the monies to buy an $85,000 BMW 650i. A Rolex watch appraised to have a fair market value of $47,800, a bracelet and a medallion were also seized at time of his arrest.
Okoro is and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by the FBI. Assistant U.S. Attorney Michael Chu prosecuted the case.
Houston Man Convicted in Galleria Mall Bank RobberyRead the Press Release
HOUSTON - Emiliano Trevino, 25, has entered a guilty plea to one count of bank robbery, announced U.S. Attorney Kenneth Magidson.
On Oct. 16, 2014, Trevino robbed the BBVA Compass Bank at gunpoint located inside the Houston Galleria Mall on Westheimer Road in Houston. The robbery occurred at approximately 12:45 p.m. during normal shopping hours.
Trevino entered the bank and asked for a withdrawal of 20s, 50s and 100s. As he demanded the money, he pulled out a black revolver from his jacket, displaying the gun to the teller.
U.S. District Judge David Hittner accepted the guilty plea today and has sentencing for April 24, 2015. At that time, Trevino faces up to 25 years in prison and a possible $250,000 maximum fine.
Previously released on bond, Trevino was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the FBI Violent Crimes Task Force with assistance of the Houston Police Department. Assistant United States Attorney Julie Searle is prosecuting.
Habitual Domestic Violence Offender Sentenced to Life Imprisonment for MurderRead the Press Release
PHOENIX – On Jan. 28, 2015, Willard John, 36, of Cibecue, Arizona, was sentenced by U.S. Senior District Judge James A. Teilborg to life imprisonment. On July 11, 2014, John was found guilty by a jury of second degree murder.
The facts of this investigation revealed that John, a member of the White Mountain Apache Tribe, brutally stabbed his wife to death on March 19, 2012, on the Fort Apache Indian Reservation, using a pair of household scissors. The evidence at trial showed that John had a lengthy history of abusing his wife.
The investigation was handled by the Federal Bureau of Investigation, with substantial assistance from the Bureau of Indian Affairs. The prosecution was handled by Dimitra H. Sampson.
CASE NUMBER: CR-12-8082-PCT-JAT
RELEASE NUMBER: 2015-009_John
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Greenbelt Man Sentenced to over 2 Years in Prison for Aggravated Identity Theft and Misuse of A Social Security NumberRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Travis Lamont Phelps, age 46, of Greenbelt, Maryland today to 25 months in prison followed by three years of supervised release for misuse of a social security account number and aggravated identity theft. Judge Chasanow also ordered Phelps to pay restitution of $5,480.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division; and Lt. Colonel Anthony C. Satchell, Acting Superintendent of the Maryland State Police.
According to his plea agreement, Phelps was wanted in North Carolina for trafficking Ecstasy. On January 8, 2014, when law enforcement went to Phelps’ apartment on Edmonston Road, Phelps identified himself as Christopher James Williams and provided Virginia and Maryland identification cards, as well as a social security card in that name. The date of birth on the identification cards and the social security number belonged to Christopher James Williams, a real person who died in California in 1982.
Law enforcement interviewed Phelps, who admitted that he was not Christopher Williams and confirmed his identifying information, including his date of birth. Phelps knew that he was wanted on an outstanding North Carolina warrant and admitted that he assumed the Williams identity after researching possible alternate identities on the internet and determining that Williams was deceased. Phelps obtained the Maryland identification card in the Williams identity on December 12, 2013, after providing the social security number card, a birth certificate, and other documents in the Williams identity.
Between 2007 and the time of his arrest in 2014, Phelps also applied for credit from numerous companies in the Williams identity. The total past due balance on those lines of credit at the time of his arrest was at least $5,480.
United States Attorney Rod J. Rosenstein praised the Social Security Administration - Office of Inspector General and the Maryland State Police for their work in the investigation and thanked Special Assistant U.S. Attorney Lauren E. Perry and Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the case.
Greater Harrison County Drug Task Force recaps successful 2014Read the Press Release
BRIDGEPORT, WEST VIRGINIA – The leaders of the Greater Harrison County Drug and Violent Crime Task Force announced the results of their collaborative efforts in 2014 and discussed what they hope to accomplish in 2015, including increased collaboration among law enforcement at all levels.
“Drug addiction has become an epidemic nationwide and is affecting the quality of life in our communities every day. We are extremely fortunate to have pro-active law enforcement officers who understand the problems and dangers that drugs bring to our communities,” noted Bridgeport Police Chief John P. Walker. “It is important for the residents of our communities to know that together we can make a difference and we value their input. The officers serving on the Greater Harrison County Drug and Violent Crimes Task Force are to be commended for the excellent work and success they accomplished in 2014. I am looking forward to their continuing success in the future.”
Greater Harrison County Drug Task Force investigations led to 41 arrests in 2014 for a variety of offenses, including prescription pill trafficking (16), heroin (10), methamphetamine (5), bath salts (4), crack cocaine (3) marijuana (2), and fraudulent prescriptions (1).
As a result of Task Force investigations, 36 individuals were sentenced to nearly 130 years in prison in 2014. Noteworthy prosecutions in 2014 included:
• Justin Zachary Rosa, 20, and Nichole Nikki Pierce, 22, both of Clarksburg, West Virginia, were sentenced in March 2014 for heroin trafficking. Rosa was sentenced to 125 months in prison. Pierce was sentenced to 71 months in prison. They were each also ordered to forfeit their interest in $4,822.46 in U.S. currency.
• William Murphy, 25, of Clarksburg, West Virginia, was sentenced to 120 months in prison for utilizing a firearm in furtherance of oxycodone trafficking.
• Casey Searcy, 33, of Salem, West Virginia, was sentenced to 110 months in prison for selling oxycodone near the Clarksburg City Park - North View.
• Leroy Douglas Rousseau, 26, of Washington, D.C., was sentenced to 84 months in prison for selling crack cocaine near the Pierpont Community & Technical College in Fairmont, West Virginia.
• Matthew Vanhorn, 28, and Megan Counts, 24 both of Stonewood, West Virginia, were convicted of selling heroin near the Stonewood City Park. Vanhorn was sentenced to 63 months in prison. Counts was sentenced to 46 months in prison.
• Amanda Lilly Daniels, 26, of Detroit, Michigan, and Jaunita Farnsworth, 31, of Clarksburg, West Virginia, were sentenced in November 2014 for their role in transporting prescription painkillers from Detroit, Michigan to Clarksburg, West Virginia for redistribution and sale. Daniels was sentenced to 41 months in prison. Farnsworth was sentenced to 37 months in prison. They were each also ordered to forfeit their interest in two firearms, nine rounds of ammunition, and $5,947.00 in U.S. currency.
• Dr. Edita Milan was convicted in December 2014 of operating a painkiller distribution ring from her Bridgeport, West Virginia medical practice. A sentencing hearing is scheduled for April 2015.
• Pharmacist Mario Blount, 51, of Bridgeport, West Virginia was convicted of prescription painkiller trafficking. A sentencing hearing is scheduled for February 2015.
• A federal grand jury returned an indictment charging Reginald Maurice Teasley, Jr., 38, of Philadelphia, PA with heroin trafficking. He faces up to 20 years in prison and a fine of up to $1,000,000.00."Area law enforcement and the Task Force have a responsibility to keep the community safe. This is our community, too,” said Clarksburg Police Chief Robert L. Hilliard. “We take it personal when illegal activity threatens the safety and well-being of the citizens in this area. The cooperative effort of coming together and working together to rid our community of illegal drugs has proven successful over and over again".
The Greater Harrison County Drug Task Force is comprised of representatives from the U.S. Attorney’s Office, the Drug Enforcement Administration, the West Virginia State Police, the United States Marshals Service, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service-CI, the Clarksburg Police Department, and the Bridgeport Police Department.
Individuals with information on drug activity in the region are encouraged to call the Task Force hotline at 304-709-3784 or send an email message to [email protected]. Regular updates on the work of the Task Force are available at harrisondrugtaskforce.com and via the official Twitter feed of the United States Attorney’s Office, @NDWVnews.
Gonzales Man Sentenced to 15 Years for Receiving Child PornographyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that Judge Shelly D. Dick sentenced JASON LOUIS OWENS, age 34, of Gonzales, Louisiana, to 15 years in prison, followed by 5 years of supervised release. The Court also ordered OWENS to pay $2,000 in restitution to one of his victims.
Following an online undercover investigation, on November 28, 2012, investigators from the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) and the Cyber Crime Unit of the Louisiana Attorney General’s Office executed a search warrant at the defendant’s residence. Through forensic analysis, agents recovered hundreds of child pornography videos on the defendant’s computer and external hard drive. The defendant had obtained these child pornography videos through peer-to-peer file sharing services on the Internet.
This was the second time the defendant has been convicted on child pornography charges in federal court. In 2004, he was convicted for receiving child pornography and sentenced to 24 months in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “Resources” tab for information about Internet safety.
U.S. Attorney Walt Green stated: “My office, together with our federal, state, and local partners, will continue to aggressively prosecute those who actively seek out images of sexually exploited children. Such conduct encourages and supports a level of depravity that must be eradicated in any civil society. We will continue to work closely with our federal, state, and local law enforcement partners to protect the exploited children as part of this important national initiative.”
This matter was handled by the United States Attorney’s Office for the Middle District of Louisiana, the Louisiana Attorney General’s Office – Cyber Crime Unit, and the U.S. Department of Homeland Security - Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Cam T. Le.
Georgia Real Estate Investors Plead Guilty to Bid Rigging and Fraud at Public Foreclosure AuctionsRead the Press Release
Two Georgia real estate investors pleaded guilty today for their roles in a conspiracy to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia, the Department of Justice announced.
Separate felony charges were filed against Mohammad Adeel Yoonas and Kevin Shin on Dec. 23, 2014, in the U.S. District Court for the Northern District of Georgia in Atlanta. According to court documents, from at least as early as April 2008 until at least March 2012, Yoonas conspired with others not to bid against one another, but instead designated a winning bidder to obtain selected properties at public real estate foreclosure auctions in Gwinnett County, Georgia. Yoonas was also charged with a conspiracy to use the mail to carry out a scheme to fraudulently acquire titles to selected Gwinnett County properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders, homeowners and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.
Shin, according to court documents, conspired with others not to bid against one another, but instead designated a winning bidder to obtain selected properties at public real estate foreclosure auctions in Gwinnett County from at least as early as March 2009 until at least March 2012. Shin was also charged with a conspiracy to use the mail to carry out a scheme to fraudulently acquire title to selected Gwinnett County properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders, homeowners and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.
“These six guilty pleas result from the Antitrust Division’s ongoing investigation into schemes to rig public real estate foreclosure auctions in Georgia,” said Assistant Attorney General Bill Baer for the Department of Justice’s Antitrust Division. “The division will continue working with its law enforcement partners to expose cartels that harm distressed homeowners and lenders.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Gwinnett County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage, and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“The criminal actions of the defendants in this case provide a clear example of why enforcement of the Sherman Act remains necessary in maintaining a level and competitive field within commerce,” said Special Agent in Charge J. Britt Johnson for the FBI Atlanta Field Office. “The FBI will continue to work with the U.S. Department of Justice’s Antitrust Division in identifying such financial schemes that attempt to take unfair advantage, to include those targeting the foreclosure auction process.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine in an amount equal to the greatest of $250,000, twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime by the conspirators.
The investigation is being conducted by Antitrust Division’s Washington Criminal II Section and the FBI’s Atlanta Division, with the assistance of the Atlanta Field Office of the Housing and Urban Development Office of Inspector General and the U.S. Attorney’s Office for the Northern District of Georgia. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions in Georgia should contact Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, or visit www.justice.gov/atr/contact/newcase.htm.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Fugitive Bank Robber, on the Run for Nearly 5 Years, Pleads Guilty to Federal ChargesRead the Press Release
A convicted bank robber who absconded from supervised release and committed crimes across two states pleaded guilty today in U.S. District Court in Seattle to escape, being a felon in possession of a firearm and interstate transportation of a stolen vehicle, announced Acting United States Attorney Annette L. Hayes. BRADLEY STEVEN ROBINETT, 46, will be sentenced by U. S. District Judge James L. Robart on May 4, 2015. ROBINETT was arrested in Hillsboro, Oregon, in June 2014, after being on the run for nearly five years. ROBINETT was arrested after police, using an automated license plate reader in a shopping mall parking lot, determined the car he was driving had been stolen in King County, Washington. The police officers waited for the driver to return to the vehicle and arrested ROBINETT without incident.
According to court filings, ROBINETT was convicted of bank robbery, and in 2004 was sentenced to seven years in prison. In August 2009 he was released from a federal prison in Arizona and put on a bus to Seattle with the requirement that he report to a specific halfway house within 48 hours. ROBINETT never reported to the halfway house and a warrant was issued for him for escape. In September 2009, police on Bainbridge Island, Washington attempted to stop a car that led them on a high speed chase. ROBINETT was driving the car, fled from it and got away. Inside the car officers found a Glock 9mm pistol and a ballistic vest. Both items were stolen from the Seattle Police Department several years earlier. The vehicle ROBINETT was driving was reported stolen in Oregon. Prior to his arrest in June, the last time law enforcement saw ROBINETT was in November of 2009, when Washington State Patrol detectives encountered ROBINETT at a Park & Ride facility in Bellevue. At the time, ROBINETT was operating a stolen vehicle. ROBINETT attempted to ram a WSP vehicle before fleeing the area. The WSP trooper driving the vehicle managed to avoid the collision, but ROBINETT was able to escape.
In addition to his bank robbery conviction, ROBINETT has prior felony convictions for possession of stolen property (King County and Clallam County), unlawful possession of a machine gun, car theft and burglary (King County).
In 2011, ROBINETT was featured on the programs Washington’s Most Wanted and America’s Most Wanted.
The investigation was a joint effort between the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the FBI, the U.S. Marshals Service, the Washington State Patrol (WSP), the Bainbridge Island Police Department, and the Hillsboro, Oregon Police Department.
The case is being prosecuted by Assistant United States Attorney Mike Dion.
Four Men Sentenced to Federal Prison for St. Thomas Jewelry Store RobberyRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Shaquim Fredericks, 20, Warkim J. Gabriel, 19, and Chefton C. Newton, 26, to 108 months in federal prison for their role in last year’s armed robbery of Imperial Jewelry Store on Main Street, St. Thomas, United States Attorney Ronald W. Sharpe announced. Co-conspirator, Alvin M. Thomas, was sentenced to 85 months in prison.
After a jury trial in District Court in July, the jury found Fredericks, Gabriel, Newton and Thomas guilty of Conspiracy to Interfere with Commerce by Robbery, Interference with Commerce by Robbery and Conspiracy to Possess a Firearm in Furtherance of a Crime of Violence.
Evidence at the three-day trial revealed that at about 9:30 a.m. on March 15, 2014, Fredericks, Gabriel, Newton and Thomas, along with other conspirators, dressed in all black clothing, wearing ski masks and possessing at least three firearms, entered the store, pointed the handguns at the employees and patrons of the store, and proceeded to take several hundred pieces of jewelry with an overall value of $2 million dollars. The perpetrators jumped over counters, broke glass display cases, and placed the stolen jewelry in their backpacks. The patrons and employees were kept at bay by the perpetrators by threats of violence and firearms. The perpetrators then fled to the Catherineberg area where they were arrested. Some of the jewelry was recovered in close proximity to where the perpetrators were arrested shortly after the robbery. The three firearms were also recovered.
In addition to a prison term, each of the perpetrators was sentenced to three years of supervised release, a $300 special assessment, and ordered to pay restitution to the jewelry store’s insurance carrier.
The case was investigated by the Virgin Islands Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation. It was prosecuted by former Assistant U.S. Attorney Kelly Lake.
Four Former Puerto Rico Police Officers Sentenced for Running Criminal Organization Out of Police DepartmentRead the Press Release
All 16 Former Officers Charged Have Now Been Sentenced
Four additional former Puerto Rico police officers have been sentenced for using their law enforcement affiliation and equipment to commit robbery and extortion, and to sell illegal narcotics and manipulate court records.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
Jose Sanchez-Santiago, Miguel Perez-Rivera and Carlos Laureano-Cruz were each sentenced to 63 months in prison. Luis Suarez-Sanchez was sentenced to 87 months in prison. All four defendants were former officers from the Police of Puerto Rico, and all four pleaded guilty in January 2014 to conspiracy to violate RICO.
The officers admitted to being members of a criminal organization that sought to enrich its members through a pattern of illegal conduct. Over the course of the conspiracy, the officers worked together to conduct traffic stops and enter homes or buildings used by suspected criminals to steal money, property and narcotics. The officers also planted evidence to make false arrests, and then extorted money in exchange for their victims’ release from custody. In exchange for bribe payments, the officers gave false testimony, manipulated court records and failed to appear in court when required so that cases would be dismissed. Additionally, the officers sold and distributed wholesale quantities of narcotics.
The officers frequently shared the proceeds they illegally obtained and used their power, authority and official positions as police officers to promote and protect their illegal activity. Among other things, the officers used their police firearms, badges, patrol cars, tools, uniforms and other equipment to commit the crimes, and concealed their illegal activity with fraudulently obtained court documents and falsified police paperwork to make it appear that they were engaged in legitimate police work.
The other 12 defendants charged in this case were sentenced in December 2014. All defendants were sentenced by Senior U.S. District Judge Daniel R. Dominguez of the District of Puerto Rico.
The case was investigated by the FBI’s San Juan Division and prosecuted by Trial Attorneys Brian K. Kidd, Emily Rae Woods and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana E. Bauzá of the District of Puerto Rico.
Four Foreign Nationals Sentenced to Illegal Reentry into the U.S. After Deportation and Removal ProceedingsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Nery Benito Sontay-Pelico, Gamaliel Cruz-Velasco, Emilio Velasco-Rojas and Kevin Adonai Cortez-Ordonez were sentenced today in front of the honorable United States District Court Judge Callie V.S. Granade to Illegal Reentry into the U.S. after Deportation and Removal Proceedings. These four individuals were in a van stopped in Baldwin County on December 3, 2014. Three other passengers in the van were previously sentenced to illegal entry into the United States without inspection and deported.
All four defendants received a custody sentence of the time served pending sentencing. The court ordered the defendants turned over to the appropriate authorities for deportation proceedings. This case was investigated by Homeland Security and Investigations and prosecuted by the United States Attorney’s Office.
Four Florida Residents Sentenced to Federal Prison for Roles in $6 Million Miami Home Health Care Fraud SchemeRead the Press Release
Four South Florida residents were sentenced today in connection with a long-running $6.2 million Medicare fraud scheme involving Professional Medical Home Health LLC (Professional Home Health), a Miami home health care agency that purported to provide home health and therapy services. Two of the defendants were also sentenced in connection with their conduct in similar schemes at other Miami home health care agencies.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement. Chief U.S. District Judge K. Michael Moore of the Southern District of Florida imposed the sentences.
Dennis Hernandez, 32, of Miami, was sentenced to serve 120 months in prison and ordered to pay $1,438,186 in restitution. Jose Alvarez, 48, of Miami, was sentenced to serve 120 months in prison and ordered to pay $2,972,570 in restitution. Joel San Pedro, 45, of Miami, was sentenced to serve 97 months in prison and ordered to pay $4,938,432 in restitution. Alina Hernandez, 38, of West Palm Beach, was sentenced to serve 24 months in prison and ordered to pay $204,526.05 in restitution.
Dennis Hernandez, Alvarez, San Pedro and Alina Hernandez each pleaded guilty to one count of conspiracy to commit health care fraud in November 2014.
In connection with their guilty pleas, each of the defendants admitted that Professional Home Health was actually operated for the purpose of billing the Medicare program for expensive physical therapy and home health services that were not medically necessary or not provided. Dennis Hernandez, San Pedro and Alvarez admitted to being managers, supervisors, owners and operators at Professional Home Health. In those capacities, they coordinated and oversaw the submission of fraudulent claims at Professional Home Health, and falsified patient documentation to make it appear that Medicare beneficiaries qualified for and received home health services that were, in fact, not medically necessary or not provided. Dennis Hernandez and Alvarez also admitted to partaking in similar schemes at additional Miami-area home health agencies.
Additionally, all four defendants admitted to acting as patient recruiters for Professional Home Health. In this role, they solicited and received kickbacks and bribes from other co-conspirators at Professional Home Health in exchange for recruiting beneficiaries who neither needed, nor, in some cases, received services.
From December 2008 through February 2014, Medicare paid Professional Home Health more than $6.2 million for fraudulent home health claims.
Earlier this year, two other individuals pleaded guilty and were sentenced in connection with the same scheme. Annarella Garcia, an owner of Professional Home Health, was sentenced to 70 months in prison. Annilet Dominguez, an administrator of Professional Home Health, was sentenced to 68 months in prison. Both were also ordered to pay $6,257,142 in restitution. A sentencing hearing for Ernesto Fernandez and Juan Valdes, co-defendants in the case, is scheduled for Feb. 3, 2015.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Four Cuban Citizens Charged with Credit Card FraudRead 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 Eduardo Hernandez Quinones, 46, Yasser Carrillo Chartrand, 23, Claudia Diaz Diaz, 21, and Yaily Santurio, 31, all citizens of Cuba legally present in the United States, were arrested and charged in two criminal complaints with conspiracy to commit bank fraud, access device fraud and aggravated identity theft. The charges carry a mandatory minimum penalty of two years in prison, a maximum of 30 years, and a fine of $1,000,000.Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that defendants Hernandez Quinones and Carrillo Chartrand are charged in one complaint as co-conspirators, and Diaz Diaz and Santuro are charged in a separate complaint as co-conspirators.
According to the complaints, the defendants are accused of fraudulently obtaining the actual credit/debit card numbers of actual people and then encoding counterfeit cards with the information illegally obtained. The defendants used the counterfeit cards to purchase merchandise at retail stores throughout Western New York. In addition, the defendants used the counterfeit cards to purchase gasoline from area gas stations and then re-sold the gasoline for cash.
The four defendants made initial appearances today before U.S. Magistrate Judge Hugh B. Scott. They are being detained. The defendants were arrested in DeWitt, New York and are facing state fraud charges for similar conduct.
The criminal complaints are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the U.S. Secret Service, under the direction of Special Agent in Charge C. Todd Laster, and the New York State Police, under the direction of Major Michael Cerretto.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Fort Worth Man Sentenced to 78 Months in Federal Prison for Running Oil and Gas Ponzi SchemeRead the Press Release
FORT WORTH, Texas — A Fort Worth man convicted for running a fraudulent oil and gas Ponzi scheme was sentenced today, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Jeffrey Watts, a/k/a “Jeff Watts,” 41, was sentenced by U.S. District Judge Terry R. Means to 78 months in federal prison and ordered to pay $4,636,643 in restitution. Watts has been in custody since his arrest in May 2014 in Eugene, Oregon, where he fled when his scheme began to unravel.
According to documents filed in the case, beginning in fall 2011 and continuing to December 2013, Watts engaged in a scheme to defraud involving oil and gas investments. He presented himself as the founder and principal of Blue Alpha Energy, falsely representing to investors that the company had invested in oil and gas well in Texas and was owned and/or operated by Arrowhead Productions, a legitimate, but unrelated company based in Fort Worth.
Watts established Blue Alpha Energy and a group of related sham entities to perpetrate his fraud scheme by leading investors to believe they were investing in oil and gas wells owned and/or operated by Arrowhead Productions. For example, Watts represented to investors that Arrowhead LG, LLC was an assumed name or “d/b/a” of Arrowhead Productions, and he possessed documents that bore the purported signature of the actual president of Arrowhead Productions, as the President of Arrowhead LG, LLC.
Watts falsely portrayed these sham entities as legitimate, third party lenders or investors in his alleged oil and gas interests, and he transferred investor funds between these accounts and the accounts of Blue Alpha Energy.
Watts falsely represented to investors that they would receive monthly distributions according to their ownership percentage in oil and gas wells owned and/or operated by Arrowhead Productions. He also duped his business partners and employees into believing his fraudulent representations, causing them to disseminate printed investment information that conveyed his misrepresentations. To further the scheme, Watts made monthly payments to investors in Blue Alpha Energy, using investor funds transferred between bank account of the sham entities he controlled.
Between 2011 and 2013, approximately $5.8 million in investments was raised from approximately 45 investors. However, in December 2013, several investors in Blue Alpha Energy learned Watts never had investment agreements with Arrowhead Productions and, in fact, funneled the investor funds into the sham business entities he controlled.
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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, visit www.stopfraud.gov.
The FBI investigated the case.
Fort Thompson Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner and Assault Resulting in Serious Bodily Injury was sentenced on January 26, 2015, by U.S. District Judge Roberto A. Lange.
Calvin Bagola, age 27, was sentenced to 55 months in custody on each count, with the sentences to be served concurrently. Bagola also received 2 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
The first conviction stems from an incident on or about February 13, 2014, when Bagola, who had been an intimate dating relationship with the victim since September of 2013, began to assault her with a closed fist at his mother’s house. Bagola also kicked the victim a couple of times. The victim received medical treatment at the hospital in Chamberlain, where it was determined she had a mildly depressed medical orbital wall fracture and a non-displaced fracture involving the superolateral aspect of the right maxillary sinus. Both of her eyes were swollen shut and she had bruising to her face and body.
Bagola’s second conviction stems from an incident on March 27, 2014, when law enforcement was called for an assault involving Bagola and the same victim from the first conviction. Bagola began assaulting the victim when a second victim attempted to intervene and protect her. Bagola assaulted the second victim with a closed fist, punching her several times and knocking her to the ground unconscious. She received medical treatment at the hospital in Chamberlain, where it was determined she had fractures of the mandible both anteriorly and involving the left ramus. She was seen by a specialist in Sioux Falls and required surgery to repair, including her mouth being wired shut for several weeks.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Bagola was immediately turned over to the custody of the U.S. Marshals Service.
Former KC Man Sentenced for Producing Child Porn, Possessing Thousands of ImagesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., man who owned a massive collection of child pornography and who victimized one child whose images of sexual assault were shared online and have been identified in thousands of other child pornography cases across the country was sentenced in federal court today.
Paul Leslie Kannarr, 59, formerly of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 10 years in federal prison without parole. The court ordered the federal sentence to be served concurrently with Kannarr’s state sentences for two child pornography convictions.
On June 4, 2014, Kannarr pleaded guilty to six counts of producing child pornography, two counts of posting a notice online that offers to display or distribute child pornography, one count of transporting child pornography over the Internet and one count of possessing child pornography.
Kannarr admitted that he used a minor, identified as “Jane Doe,” to produce child pornography on six separate occasions between Dec. 19, 1999 and Sept. 23, 2000. Kannarr advertised the availability of some of those images in Internet newsgroups and distributed images of the victim over the Internet. The National Center for Missing and Exploited Children (NCMEC) confirmed that, as of June 2014, more than 55,000 images of Kannarr’s principle victim have been detected in almost 7,000 cases reported to NCMEC. Those photos are still being distributed on the Internet more than a decade after their production.
Kannarr also possessed thousands of pornographic images and videos of a multitude of additional child victims. The FBI forensic examination of Kannarr’s electronic media yielded approximately 65,000 images of child pornography unrelated to the principle victim.
According to court documents, Kannarr also admitted he had sexually exploited the principle minor victim when the child was 6 through 13 years of age. Kannarr apparently was preparing to use hypnosis to continue to persuade his victim to expose herself in photographs for him and to possibly engage in more intimate sexual contact. There was evidence that he considered programming his son and the son’s adolescent friends to engage in sexual activity for Kannarr’s photographic exploitation. Court documents also report that Kannarr secretly filmed another minor girl and her friend in the shower.
Missouri Cases: 01CR82152-01 and 7CR101000603
Kannarr is currently serving a 30-year sentence in state prison for two child pornography convictions.
On Jan. 24, 2001, Kannarr was discovered to have taken a small number of sexually explicit Polaroids of the same victim as in the federal case while residing in Platte County and in Clay County, Mo. A subsequent search of Kannarr’s living quarters resulted in the recovery of multiple electronic media containing additional images. On Feb. 21, 2001, Kannarr was charged by Clay County with production of several of the images of the principle victim taken in its jurisdiction. A month after that, Platte County charged Kannarr with the production of the Polaroid images of the principle victim taken in its jurisdiction.
On May 9, 2001, Kannarr pleaded guilty in Clay County to the production of two child pornography images taken in 1995. On June 21, Kannarr was sentenced to 14 years for these offenses. A few days later, on June 23, 2001, Kannarr pleaded guilty to the photos taken of his victim in 1998 in Platte County, and was sentenced on the same day to 30 years’ incarceration.
The Platte County sentence ran concurrently with the Clay County sentence; Kannarr thus received a total sentence of 30 years for two separate state cases in 2001. Kannarr had a state parole hearing in November 2008 (after serving less than one-fourth of his sentence) and another state parole hearing (which wasn’t held due to the federal case) scheduled for November 2014 (after having served less than half of his sentence).
The FBI’s investigation of all of the electronic media recovered from Kannarr’s residence began after Kannarr had been sentenced on his state cases.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Kansas City, Mo., Police Department and the FBI Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Gadsen County Sheriff's Captain Convicted of Civil Rights ViolationRead the Press Release
TALLAHASSEE – James Corder, 54, a former captain with the Gadsden County Sheriff’s Office, has been convicted on charges of violating the civil rights of an arrestee, obstruction of justice, and making false statements in a federal investigation. The convictions were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Evidence presented at the four-day trial showed that on July 25, 2013, Corder deprived an arrestee of his constitutional right to due process of law by stealing approximately $1,785 belonging to the arrestee. Thereafter, Corder made false and misleading statements to the FBI and FDLE agents investigating the theft. Sentencing is scheduled for April 8, 2015, before United States District Judge Mark E. Walker.
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement, with assistance from the Gadsden County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Karen Rhew-Miller.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Federal Bureau of Prisons employee pleads guilty to sex chargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Richard Canterbury, 50, of Lewisburg, West Virginia, pleaded guilty to abusive sexual contact involving a ward.
Canterbury, a former Federal Bureau of Prisons employee, admitted that while he was working as a supervisor in the garage at the Federal Prison Camp in Alderson, West Virginia, he intentionally touched the breasts of a female inmate on one occasion in early 2014.
Canterbury faces up to two years in prison, and a fine of $250,000. He is scheduled to be sentenced on May 13, 2015.
United States District Judge Irene C. Berger presided over the plea hearing.
This case is being investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Assistant United States Attorney John File is in charge of the prosecution.
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