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Thursday 22 January 2015
Judge Sentences Felon to 20 Years in Prison for Violating Federal Gun and Drug LawsRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 240 months in prison on his conviction of violating federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Thomas Clay Wade, 36.
According to information presented to the court, Wade was a felon who knowingly possessed a firearm and ammunition and knowingly possessed crack cocaine with the intent to distribute.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crimes.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Wade.
Johnny Michael Stallard Sentenced to 180 Months on A-Pvp ChargesRead the Press Release
GREENEVILLE, Tenn. – Johnny Michael Stallard, 39, of Kingsport, Tennessee, was sentenced on Jan. 22, 2015, by the Honorable R. Leon Jordan, U.S. District Court Judge, to a federal prison term of 180 months for his leadership role in an a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy centered in and around the Sullivan County, Tennessee area. A-PVP is a synthetic drug which is commonly referred to on the street as “gravel.”
According to the plea agreement on file with the U.S. District Court, Stallard admitted, that before he got arrested, he was one of the biggest a-PVP dealers in the Kingsport, Tennessee area. On occasions, he obtained a-PVP by the kilogram from an out of state source of supply. He admitted to personally selling and/or having other family members such as Austin Michael Stallard, 19, and David Michael Stallard, 20, both of Kingsport, sell approximately 7,500 grams of a-PVP in the Eastern District of Tennessee and elsewhere. He also admitted that the two younger family members were basically serving as interns for the organization and were supposed to take over for him eventually. Even after he was arrested and in jail, Stallard assisted them and others in the continued sale of a-PVP during numerous recorded telephone conversations.
Stallard was indicted with a number of his family members. His son, Austin Michael Stallard was previously sentenced to 121 months for his role in trafficking a-PVP, hydromorphone and possessing a firearm in furtherance of drug trafficking. His cousin, Leslie Stallard, 37, and his aunt Peggy Stallard, 55, both of Kingsport, were previously sentenced to serve 60 and 72 months in prison respectively for their roles in the a-PVP distribution conspiracy. David Michael Stallard and another co-defendant were also convicted on a-PVP conspiracy charges and have upcoming sentencing dates.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent convictions of Johnny Michael Stallard and co-defendants included the Sullivan County Sheriff’s Office, Kingsport Police Department, Hawkins County Sheriff’s Department, Johnson City Police Department, Greeneville, Tennessee Police Department, Hendersonville, North Carolina Police Department, Scott County, Virginia Sheriff’s Office, Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, and the Department of Homeland Security Investigations. Assistant U.S. Attorney Wayne Taylor represented the United States.
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 Lynch in Missoula on January 22, 2015, and entering pleas of Not Guilty were:
- MATTHEW LENNON KEHS, a 34-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charge contained in the indictment, KEHS faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA. PACER Case Reference: 14-43
Appearing before U.S. Magistrate Judge Ostby in Billings on January 20, 2015, and entering pleas of Not Guilty were:
- GREGG LAWRENCE HAYWOOD, a 47-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the most serious charge contained in the indictment, HAYWOOD faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference: 14-71
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.
Hot Springs Felon Sentenced to 70 Months in Prison for Distribution of Crack CocaineRead the Press Release
Texarkana, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Cletus Davis, age 39, of Hot Springs, was sentenced today to 70 months imprisonment and three years of supervised release on two counts of Distribution of a Controlled Substance, Crack Cocaine. The sentencing took place before the Honorable Susan O. Hickey in the United States District Court for the Western District of Arkansas in Texarkana.
U.S. Attorney Eldridge commented, “Those who bring illegal drugs onto our streets threaten our communities and the families that live in them. Hot Springs, one of Arkansas’s most beautiful cities, has been plagued by violence escalated by this criminal activity. We will remain focused on investigating and prosecuting these crimes and hold those involved accountable.”
According to court records, during the course of an ongoing investigation, on two separate occasions in August, 2013, detectives with the Hot Springs Police Department Street Crimes Unit arranged for a controlled purchase of crack cocaine from Cletus Davis in exchange for U.S. currency. On each occasion after the exchange, the suspected substance was field tested and showed to be positive for cocaine. The substance was then sent to the Arkansas State Crime Lab where it was confirmed to be cocaine base. Davis pleaded guilty to two counts of Distribution of a Controlled Substance, Crack Cocaine on August 15, 2014. He was previously convicted of 3 felony drug offenses between 1997 and 2007.
This case was investigated by the Hot Springs Police Department. Assistant United States Attorney David Harris 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
Honduran Sentenced to 12 Months in Prison for Illegal Possession of a FirearmRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Honduran national was sentenced to 12 months in prison for possessing a firearm while being in the United States illegally.
Jose Marnin Perez-Perez, 24, of Honduras, was sentenced by U.S. District Judge Richard T. Haik for one count of possession of a firearm by a prohibited person. According to evidence presented at the October 23, 2014 guilty plea, a Youngsville police officer conducted a traffic stop on a vehicle Perez was traveling in on August 6, 2014. Upon further investigation, the officer found a Hi-Point 9 mm pistol in a seat pocket where Perez was seated. It was later learned that Perez had been deported in 2012 after a U.S. Border Patrol arrest.
This case is part of Project Safe Neighborhoods, which is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promoting firearm safety.
Homeland Security Investigations and the Youngsville Police Department conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Gulf Cartel Conspirator Sentenced on Cocaine PossessionRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced Nolberto Martinez, also known as “Negro”, aged 31, of Bronwood, Georgia, was sentenced on January 22, 2015, to serve 30 years (360 months) in federal prison for conspiracy to possess with the intent to distribute cocaine and crack cocaine and distribution of cocaine. The sentence was handed down by the Honorable W. Louis Sands, Senior United States District Court Judge, in Albany, Georgia.
Mr. Martinez was convicted on September 5, 2013 following a 20 day jury trial. Testimony at trial revealed that Mr. Martinez was a member of the Gulf Cartel that supplied cocaine to Middle Georgia. From 2007 to October 2011, Mr. Martinez was involved in a large-scale cocaine and crack cocaine distribution organization responsible for the distribution of over 500 kilograms of cocaine in Berrien, Colquitt, Dougherty, Tift, Lowndes, Terrell, Turner, Seminole, Ware, and Calhoun counties in Georgia. The cartel worked from Matamoros, Mexico, placing cocaine inside the hidden compartments of specially-equipped vehicles.A number of additional members of the drug conspiracy have previously been sentenced. Those include:
Carlos Johnson – Life in Prison
Kelvin Johnson – Life in Prison
Bobby Taylor—30 years (360 months) imprisonment
Gary Lockett – 21.8 years (262 months) imprisonment
Stuart Cole 15.6 years (188 months) imprisonment
William McKeithen – 15.6 years (188 months) imprisonment
Raymond Sutton— 14 years (168 months) imprisonment
Mark Cleveland Simpson - 13 years (160 months) imprisonment
T’Michael Jones 12.25 years (147 months) imprisonment
Casey Clemons—10 years (120 months) imprisonment
Octavio Sandoval 8.3 years (100 months) imprisonment
Antonio Wimbush – 7.25 years (87 months) imprisonment
James Willis—6.7 years (80 months) imprisonment
Francisco Javier Arispe - 5.8 years (70 months) imprisonment
M. Nichole Sheffield 4 years (48 months) imprisonment.
Baldemar Chavero Leal - 3.8 years (46 months) imprisonment
W. Alvin Barge - 2 years (24 months) imprisonment
U.S. Attorney Michael Moore said, “We have seen an alarming increase in the distribution of drugs from Mexico to the Middle District of Georgia. With these drugs come violence and the devastation of untold numbers of lives. These organizations, whether you call them cartels or simply gangs, will find no safe haven in Middle Georgia. We will spare no effort or resource to make sure that we dismantle these drug distribution organizations. With the lengthy sentences for many of these defendants, we can all sleep a little better knowing that they will be off our streets for years to come. ”John S. Comer, the Acting Special Agent in Charge of the DEA Atlanta Field Division said of the sentencing, “DEA and its law enforcement counterparts orchestrated a well-planned and coordinated assault against this well-established Mexican-based drug cartel that was operating in the Middle District of Georgia. Mexican drug cartels are the source of so many dangerous drugs destined for our country and are responsible for much of the violence in Mexico today. Because of the unified effort between DEA and its law enforcement counterparts, this once-thriving organization will no longer be able to wreak havoc on our society.”
“The successful prosecution of these individuals is the result of commitment and hard work by the men and women working in local, state, and federal law enforcement. The GBI is committed to working with our law enforcement partners as we continue to identify and investigate individuals involved in drug trafficking in Georgia,” stated Vernon Keenan, Director of the Georgia Bureau of Investigation.
The case was investigated by agents from the U.S. Drug Enforcement Administration, Georgia Bureau of Investigation, Bainbridge Department of Public Safety and Georgia State Patrol. Assistant United States Attorney Leah E. McEwen prosecuted the case for the government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Greenville Man Sentenced to 72 Months in Oxycodone ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Gregory D. Megilligan, age 50, of Greenville, was sentenced today in federal court in Greenville, for conspiracy to distribute oxycodone, a violation of Title 21, United States Code, Section 846. Senior United States District Judge Henry M. Herlong, Jr., of Greenville sentenced Megilligan to 72 months imprisonment.
Evidence presented at the change of plea hearing established that Megilligan was in league with Lance Tew, Jessica Hollingsworth, and Ginger Merritt. These three co-conspirator have already been sentenced (Tew was sentenced to 100 months, Hollingsworth to 48 months, and Merritt to 60 months). The four involved in the prescription ring created fraudulent scripts for oxycodone and recruited individuals to pass the prescriptions at various pharmacies in the upstate of South Carolina and in western North Carolina.
The criminal activity was discovered when, on January 15, 2013, Jessica Hollingsworth was arrested in a CVS pharmacy in York County for attempting to pass a fraudulent prescription for oxycodone. Lance Tew was the person who drove her to the pharmacy in a rental car. Both Tew and Hollingsworth were arrested. The car war towed and an inventory search conducted. Police found cash, pills, fake ids, blank prescriptions, and fraudulent prescriptions. Further investigation revealed that the conspirators were passing at least one fraudulent prescription per day. The conspirators recruited many individuals to pass the prescriptions and generally paid the prescription passers 30 pills for their efforts. Merritt, having good computer skills, was the primary manufacturer of the fraudulent prescriptions. Megillian assisted with recruitment and the passing of various prescriptions.
The case was investigated by agents of the federal Drug Enforcement Administration. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Green Bay Man Indicted on Sexual Exploitation of a Child and Pornography ChargesRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin, announced that on January 20, 2015, a federal grand jury returned a four-count indictment against Joseph J. Valdez (age: 29) of Green Bay, Wisconsin, charging him with three counts of sexual exploitation of a child in violation of Title 18 United States Code Section 2251(a) and a single count of possession of child pornography in violation of Title 18 United States Code Section 2252A (a)(5)(B). If convicted of the exploitation offenses, as to each count the defendant faces a sentence of between fifteen and thirty years imprisonment, a $250,000, and between five years and a lifetime of supervised release. Conviction on the possession offense carries penalties of up to ten years imprisonment, a $250,000 fine, and between five years and a lifetime of supervised release.
The indictment alleges that Valdez knowingly coerced underage females to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct, as well as knowingly possessing numerous images of child pornography.
The case was investigated by the Seymour Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Fulton County Man Charged Federally with Firearms ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury in Harrisburg, Pennsylvania, handed down a three-count indictment against Darren L. Hamil, age 43, of Needmore, Fulton County, Pennsylvania.
According to U.S. Attorney Peter Smith, the indictment charges Hamil with two counts of being a convicted felon in possession of a firearm, and with making a false statement in connection with the attempted purchase of a firearm by denying that he had ever been previously convicted of a felony offense.
The charges stem from a December 27, 2014 incident and search at Hamil’s home when Pennsylvania State Police responded to a domestic disturbance report.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms and by the Pennsylvania State Police. Assistant U.S. Attorney Gordon Zubrod oversaw the grand jury investigation and has been assigned to prosecute the case.
The maximum sentence Hamil faces is 10 years imprisonment and a $250,000 fine.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Traverse City Man Sentenced to Nine Years in Prison for Importing "Bath Salts" from ChinaRead the Press Release
GRAND RAPIDS, MICHIGAN – Joshua David Buerman, 27, formerly of Traverse City, Michigan, was sentenced in the U.S. District Court for the Western District of New York on a charge originally brought here in the Western District of Michigan. He received 9 years in prison for his involvement in a conspiracy to import into the State of Michigan more than 5 kilograms of methylone from China. Buerman also received a concurrent 9 year sentence on his plea of guilty to a separate criminal charge stemming from his involvement in a conspiracy to import and distribute more than 15 kilograms of methylone in the State of New York.
Methylone is a synthetic stimulant having a chemical structure which closely resembles 3,4 methyelenedioxymethamphetamine, known commonly as “MDMA” or “ecstasy.” Methylone is often sold generically by the street term “bath salts” or “research chemicals.” Methylone was permanently placed into Schedule I of the Controlled Substances Act in April 2013.
U.S. Attorney Patrick Miles said, “Synthetic drugs such as methylone are extremely dangerous. Users are often misled into believing synthetic drugs are less harmful than more commonly known street drugs, particularly by their innocuous sounding street name, ‘bath salts.’ In truth, synthetic drugs can lead to severe psychological dependence and death. Because synthetic drugs often have obscure origins, are imported from overseas, and contain misleading labeling, users often have no idea what kinds of chemicals they are putting in their bodies. We will vigorously prosecute those who illegally import and distribute these drugs.”
In February 2012, while living in Traverse City, Michigan, Joshua Buerman began purchasing quantities of methylone and several other synthetic drugs from a Chinese source of supply that he discovered over the internet. Over the course of the next several months, Buerman ordered more than 5 kilograms of methylone, all of which was delivered to him through the U.S. mail.
In June 2012, Buerman left the state Michigan and moved back to Rochester, New York where he continued to purchase and receive significant quantities of methylone online from the same Chinese supplier. In connection with the investigation of Buerman and his Chinese source of supply, law enforcement officials were able to determine that Buerman was actively ordering methylone from China and that he had recruited several local associates to assist him.
The investigation further revealed that the China-based supplier was shipping an assortment of controlled substances and controlled substance analogues to numerous customers located throughout the United States and abroad, including, but not limited to Austria, Canada, Finland, Spain, Germany, Italy, Belgium, Ireland, the United Kingdom, Sweden and Lithuania.
The investigation generated more than 450 leads which were disseminated to various police agencies across the United States, resulting in the nationwide seizure of more than 70 kilograms of methylone and numerous controlled substance analogues, all of which had been shipped from China. Investigative leads also resulted in at least 54 arrests nationwide, including Maine, Massachusetts, Connecticut, New Jersey, Maryland, Virginia, North Carolina, South Carolina, Georgia, Florida, Louisiana, Tennessee, Missouri, Ohio, Minnesota, Nevada, Oregon, California and Texas.
The Michigan portion of the investigation was handled by the Michigan State Police and Homeland Security Investigations. It was prosecuted by AUSA Clay Stiffler.
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Former Traverse City Man Sentenced to Nine Years in Prison for Importing "Bath Salts" from ChinaRead the Press Release
GRAND RAPIDS, MICHIGAN – Joshua David Buerman, 27, formerly of Traverse City, Michigan, was sentenced in the U.S. District Court for the Western District of New York on a charge originally brought here in the Western District of Michigan. He received 9 years in prison for his involvement in a conspiracy to import into the State of Michigan more than 5 kilograms of methylone from China. Buerman also received a concurrent 9 year sentence on his plea of guilty to a separate criminal charge stemming from his involvement in a conspiracy to import and distribute more than 15 kilograms of methylone in the State of New York.
Methylone is a synthetic stimulant having a chemical structure which closely resembles 3,4 methyelenedioxymethamphetamine, known commonly as “MDMA” or “ecstasy.” Methylone is often sold generically by the street term “bath salts” or “research chemicals.” Methylone was permanently placed into Schedule I of the Controlled Substances Act in April 2013.
U.S. Attorney Patrick Miles said, “Synthetic drugs such as methylone are extremely dangerous. Users are often misled into believing synthetic drugs are less harmful than more commonly known street drugs, particularly by their innocuous sounding street name, ‘bath salts.’ In truth, synthetic drugs can lead to severe psychological dependence and death. Because synthetic drugs often have obscure origins, are imported from overseas, and contain misleading labeling, users often have no idea what kinds of chemicals they are putting in their bodies. We will vigorously prosecute those who illegally import and distribute these drugs.”
In February 2012, while living in Traverse City, Michigan, Joshua Buerman began purchasing quantities of methylone and several other synthetic drugs from a Chinese source of supply that he discovered over the internet. Over the course of the next several months, Buerman ordered more than 5 kilograms of methylone, all of which was delivered to him through the U.S. mail.
In June 2012, Buerman left the state Michigan and moved back to Rochester, New York where he continued to purchase and receive significant quantities of methylone online from the same Chinese supplier. In connection with the investigation of Buerman and his Chinese source of supply, law enforcement officials were able to determine that Buerman was actively ordering methylone from China and that he had recruited several local associates to assist him.
The investigation further revealed that the China-based supplier was shipping an assortment of controlled substances and controlled substance analogues to numerous customers located throughout the United States and abroad, including, but not limited to Austria, Canada, Finland, Spain, Germany, Italy, Belgium, Ireland, the United Kingdom, Sweden and Lithuania.
The investigation generated more than 450 leads which were disseminated to various police agencies across the United States, resulting in the nationwide seizure of more than 70 kilograms of methylone and numerous controlled substance analogues, all of which had been shipped from China. Investigative leads also resulted in at least 54 arrests nationwide, including Maine, Massachusetts, Connecticut, New Jersey, Maryland, Virginia, North Carolina, South Carolina, Georgia, Florida, Louisiana, Tennessee, Missouri, Ohio, Minnesota, Nevada, Oregon, California and Texas.
The Michigan portion of the investigation was handled by the Michigan State Police and Homeland Security Investigations. It was prosecuted by AUSA Clay Stiffler.
Former Office Manager Pleads Guilty to Wire Fraud and Tax EvasionRead the Press Release
BOSTON – A former office manager of a medical practice in Northampton pleaded guilty today in U.S. District Court in Springfield to wire fraud and tax evasion.
Roxanne Tubolino, 56, of Belchertown, Mass., pleaded guilty to wire fraud and six counts of tax evasion. In November 2014, Tubolino was charged in an Information. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 16, 2015.
From 2008 through September 11, 2013, Tubolino was employed as an office manager for Northampton Internal Medical Associates (NIMA), a medical practice with offices in Northampton, Mass. During this period, Tubolino embezzled approximately $1,562,206 by writing numerous checks from NIMA’s corporate account to pay her personal credit card bills for accounts that she held at American Express, Bank of America, Chase, and Barclays. Tubolino concealed this theft by falsely and fraudulently entering these checks into NIMA’s Quickbooks records as business expenses, such as “Clint Pharmaceuticals,” “Oncology Supplies,” and “Abbot Laboratories.” Tubolino also filed tax returns for 2008 through 2013 in which she did not report any of the income that she received from her embezzlement at NIMA.
The charge of wire fraud provides a sentence of no greater than 20 years in prison, five years of supervised release, and a fine of $250,000. The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, and fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Former Municipal Court Judge Sentenced in Fraud CaseRead the Press Release
PHILADELPHIA – Joseph C. Waters, Jr., 61, of Philadelphia, was sentenced today to 24 months in prison for using his judicial position to influence the outcome of two cases in the Philadelphia Municipal Court. Waters, a former Philadelphia Municipal Court Judge, pleaded guilty on September 14, 2014 to mail fraud and honest services wire fraud. In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered 3 years of supervised release and ordered Waters to pay a fine of $5500, and a special assessment of $200.
According to documents filed in the case, on September 30, 2011, Waters was asked by Person #1 – a politically active business owner – to use his judicial office to achieve a favorable outcome in a small claims case filed in Philadelphia Municipal Court against Person #1’s real estate management company. To that end, Waters called two other Municipal Court judges, assigned to the case on different dates, and asked them to rule in Person #1’s favor. A Municipal Court Judge identified in the information as Judge #2 ultimately adjudicated the case in favor of Person #1 after Waters told Judge #2 “he’s a friend of mine.” Judge #2’s ruling in favor of Person #1’s company prevented the plaintiff in the small claims case, Company B, from collecting $2733 in unpaid fees owed to it for security services it delivered to Person #1’s company.
Waters gave Person #1 a secret advantage through a series of secret ex parte communications with other Municipal Court judges scheduled to hear the small claims case and used his position to cause favorable rulings for Person #1.
In a second scheme, Waters used his position as a judge to facilitate a favorable outcome in a criminal firearms case. In that matter, Person #1 urged a witness cooperating with the government, “CW#1,” to contribute money to help pay down debts Waters had incurred while campaigning for a position on the Municipal Court. In January 2010, CW#1, gave Waters $1,000 in cash. In accepting the money, Waters told CW#1 that he would help CW#1 with future problems that CW#1 or CW#1’s friends may encounter in the court system. Between 2010 and 2012, CW#1 provided gifts and cash contributions to Waters that were not reported on Waters’ campaign finance reporting forms.
In May 2012, CW#1 asked Waters for his assistance with a firearms prosecution pending in the Municipal Court. CW#1 introduced Waters to an undercover agent (“UC#1”) as a business associate. CW#1 and UC#1 asked Waters to help UC #1’s “cousin” who had been arrested for felony possession of a firearm. On July 23, 2012, Waters called Judge #1 alerting Judge #1 to the preliminary hearing of a “friend” for the firearms charge and asked Judge #1 to “help him.” At a July 24, 2012 preliminary hearing, Judge #1, without proper legal basis, reduced the felony firearms charge to a misdemeanor.
The case was investigated by the FBI and is being prosecuted by Chief of the Public Corruption Unit Richard P. Barrett and Assistant United States Attorney Michelle L. Morgan.
Former Iowa City Area Man Sentenced to 15 Years for Methamphetamine TraffickingRead the Press Release
DAVENPORT, IA – On January 22, 2015, Shedrick Xavier Pujoe, age 26, formerly of the Iowa City area, was sentenced by United States District Judge Stephanie M. Rose for possession with intent to distribute at least 50 grams of actual methamphetamine announced United States Attorney Nicholas A. Klinefeldt. Pujoe was sentenced to 180 months in prison. He was also ordered to serve five years supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
On August 8, 2013, police executed a search warrant at a motel room in Coralville, Iowa, where Pujoe was residing. Police seized numerous items in the room indicative of drug trafficking, including 20 separately packaged amounts of ice methamphetamine totaling 88 grams. Also in the room were digital scales, latex gloves, numerous plastic baggies, and drug ledgers. Pujoe’s fingerprint was identified on the packaging containing the methamphetamine. At trial, testimony and supporting evidence was received that Pujoe sold portions of that ice methamphetamine on multiple occasions to a customer during the summer of 2014. On October 8, 2014, a jury found Pujoe guilty of the drug trafficking charge.
This case was investigated by the Johnson County Drug Task Force, the Iowa Department of Narcotics Enforcement, the U.S. Drug Enforcement Administration, the Coralville, Iowa, Police Department, and the Iowa City, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Florida Man Sentenced to 21 Months in Federal Prison for $433,000 FraudRead the Press Release
SAN FRANCISCO – Yesterday, Michael Pitamber Ramdat was sentenced to 21 months in prison and ordered to pay restitution for a fraud scheme he perpetrated against small business owners and others seeking lines of credit around the nation, announced United States Attorney Melinda Haag; Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and David Johnson, Special Agent in Charge of the Federal Bureau of Investigation (FBI) San Francisco Field Office.
Ramdat pleaded guilty on June 11, 2014. According to the Plea Agreement, Ramdat and his partner, Leigh Farrington Fiske, operated a business referred to as “Corporate Funding Solutions.” The purported purpose of this business was to obtain credit lines for customers in exchange for a fee. Ramdat’s role was to vouch for the legitimacy of the business with victims recruited by Fiske, and to provide “customer service” by giving excuses to the victims. In reality, neither Fiske nor Ramdat ever intended to provide any services to their customers. Instead, they accepted approximately $433,000 from approximately 30 victims and never helped any of these victims obtain credit. Ramdat admitted that he kept over $200,000 of these payments for himself. Monies obtained through the fraudulent scheme were funneled through banks that received Troubled Asset Relief Program funding.
Ramdat, 30, of Palm Bay, Fla., was indicted by a federal grand jury on Nov. 21, 2013, on five counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of conspiracy, in violation of 18 U.S.C. § 1349. Ramdat pleaded guilty to all counts.
The sentence was handed down by the Honorable Edward M. Chen, United States District Court Judge. Judge Chen also sentenced the defendant to a three year period of supervised release and restitution. The defendant is in custody and will begin serving the sentence immediately. Fiske was previously sentenced by Judge Chen to a term of imprisonment of 37 months.
Benjamin Kingsley is the Assistant U.S. Attorney who is prosecuting the case, with the assistance of Mary Mallory and Jessica Meegan. The prosecution is the result of an investigation by SIGTARP and the FBI.
This prosecution was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, which was established to wage an aggressive and coordinated effort to investigate and prosecute financial crimes. SIGTARP is a member of the task force. To learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.StopFraud.gov.
First of Cape Cod Brothers Sentenced to Twenty Years for Oxycodone Trafficking SchemeRead the Press Release
BOSTON – After a month-long federal trial, Joshua M. Gonsalves was sentenced on multiple charges arising from a three-year conspiracy involving hundreds of thousands of 30-milligram oxycodone pills which he and his brother distributed on Cape Cod and generated over $5 million in proceeds.
Joshua M. Gonsalves, 34, of Dennisport, Mass., was sentenced by U.S. District Court Chief Judge Patti B. Saris to 20 years in prison, five years of supervised release, forfeiture of $1,522,372 and property, including seized currency, a house in West Yarmouth, a Cadillac, and a Nissan Altima.
In October 2014, Joshua Gonsalves was convicted of oxycodone conspiracy, money laundering conspiracy and money laundering. Joshua Gonsalves’s brother, Stanley D. Gonsalves, 36, also of Sandwich, Mass., was convicted of an oxycodone trafficking conspiracy, a money laundering conspiracy, and 17 substantive money laundering charges. Stanley Gonsalves is scheduled to be sentenced on Feb. 24, 2015.
During the trial, witnesses testified that the conspiracy’s couriers transported multi-thousand-pill loads of 30-milligram oxycodone pills from South Florida up to New England, first by plane and later by car. Once the pills were brought to numerous area hotels or conspirators’ homes and apartments in Dorchester, Quincy, and Onset, Mass., the conspirators would divide them into 100-pill packs and then take the pills to Cape Cod for sale to the dealer-level customers.
The primary object of the related money laundering conspiracy was to use the millions of dollars in drug proceeds to purchase additional oxycodone pills and to pay the ongoing expenses of the oxycodone conspiracy. During the trial, witnesses testified about seizures from the Gonsalves Brothers’ co-conspirators of two south-bound cash shipments totaling $140,000, and a north-bound pill shipment of 5,700 pills. Other large pill seizures occurred in Fort Lauderdale (8,000 pills), in Volusia County, Fla. (900 pills), along Route 6 in Barnstable, Mass. (280 pills), and along Route 3 Southbound in Kingston, Mass (4,000 pills). Other related cash seizures from co-conspirators totaled $167,000.
The trial evidence also included extensive testimony about a car chase and rollover incident which occurred on Route 3 Northbound on May 13, 2011, in which the Gonsalves Brothers allegedly rammed their Mercedes SUV into a Volvo station wagon which they mistakenly believed contained the $225,000 in cash drug proceeds which had just been taken from them in a Bourne robbery. The men in the Volvo, who allegedly were only assisting the primary robbers (who were watching these events unfolding from a different car) managed to survive the rollover crash and then fled into the woods. In a recorded call a few days later, which was played at the trial, Stanley Gonsalves told a criminal associate about the robbery, boasting that the robbers “didn’t expect us to do what we did” in retaliation.
At today’s hearing, the prosecutor noted that newly-inaugurated Massachusetts Governor Baker and Attorney General Healey have both named the Massachusetts opiate epidemic as among their top priorities. U.S. Attorney Ortiz has been working for many months with federal state and local officials to combat opiate addiction in Massachusetts. Chief Judge Saris found the defendant responsible for over 89,000 oxycodone pills and described his criminal record as “shocking.”
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. Significant assistance was also provided by the DEA Cape Cod Drug Task Force; the Barnstable County and Cape and Islands District Attorneys Offices; the Barnstable, Boston, Bourne, Chatham, Dennis, Franklin, Harwich, Plymouth, Sandwich, Quincy, Yarmouth, and Wareham Police Departments; the Barnstable and Bristol County Sheriff’s Departments; the Florence County (South Carolina), Broward County (Florida) and Volusia County (Florida) Sheriff’s Offices; and the Dillon and Ridgeland (South Carolina) Police Departments.
The case was prosecuted by Assistant U.S. Attorney Timothy E. Moran and recently retired Assistant U.S. Attorney Richard L. Hoffman of Ortiz’s Organized Crime Strike Force Unit.
Federal Prosecutors Will Recommend 20 Years for Wichita Man Arrested with Thousands of Child Porn Images and VideosRead the Press Release
WICHITA, KAN. – Federal prosecutors will recommend a 20-year sentence for a Wichita man who pleaded guilty to collecting thousands of images and videos of child pornography, U.S. Attorney Barry Grissom said today.
James Paul Bettes, Jr., 47, Wichita, Kan., pleaded guilty Thursday in U.S. District Court in Wichita to one count of distributing child pornography and one count of possessing child pornography. In his plea, he acknowledged that the investigation began in May 2014 when a detective with the Wichita Police Department downloaded child pornography that Bettes was distributing on a peer-to-peer file sharing network. The images included prepubescent children being sexually molested.
When investigators served a search warrant at Bettes’ home they found thousands of images and videos of child pornography on various devices. They determined that Bettes had been collecting child pornography since 1995 and was using a computer, external drives and other storage devices to preserve his collection.
Sentencing is set for April 9. Both parties have agreed to recommend a sentence of 20 years in federal prison. In addition, prosecutors will recommend restitution of $3,000 per victim to any victim who may be identified and requests restitution prior to sentencing. The total is not to exceed $50,000.
Grissom commended the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force and Assistant U.S. Attorney Jason Hart for their work on the case.
Federal Jury Convicts Chattanooga Pain Clinics Owner of Drug Trafficking and Financial CrimesRead the Press Release
CHATTANOOGA, Tenn. - Following a 25-day trial in U.S. District Court that began on Nov. 3, 2014, a jury convicted Barbara Lang, a.k.a. “Aunt Bea,” 60, of Rossville, Ga., of conspiring to illegally distribute controlled substances (oxycodone and Xanax) at Superior One Pain Clinic and Primary Care Pain Clinic, two pain management clinics owned and operated by Lang.
The jury also convicted Lang of operating drug-involved businesses at five of the six locations used by the clinics. Lang was also convicted of illegally “structuring” cash deposits into Primary Care’s bank account at First Tennessee Bank in an effort to avoid triggering currency transaction reporting requirements. Altogether, she was convicted of two drug conspiracy charges; five maintaining a drug-involved business; and 14 structured transactions to avoid reporting requirements. She was acquitted of one count of maintaining a drug involved business, eight structuring counts, and one charge of harboring a fugitive, her daughter, Faith Blake, who was also charged in this case.
Sentencing for Lang is set for 9:00 a.m., Apr. 9, 2015, in U.S. District Court in Chattanooga. She faces a maximum sentence of 210 years in prison and forfeitures of up to $4 million. Approximately $1 million has already been seized in the case.
Lang was charged along with three others who have all previously pleaded guilty. Lang’s daughter, Faith Blake, pleaded guilty to conspiring to illegally distribute drugs through Superior One medical clinic, a business she operated with her mother. Blake also pleaded guilty to conspiring to illegally distribute drugs through Elite Care, another Chattanooga pain clinic that she operated. Additionally, she pleaded guilty to obstructing the Internal Revenue Service (IRS) and failure to appear for a federal court proceeding.
Dr. Jerome Sherard, Superior One’s medical director, pleaded guilty to conspiring to illegally distribute drugs at Superior One Medical Clinic and at the Sherard Clinic, his own practice. Charles Larmore, a nurse practitioner employed by the Lang at Superior One and Primary Care, pleaded guilty to conspiring to illegally distribute drugs at both those clinics.
Evidence presented at trial established that Lang and Blake operated Superior One as a “pill mill,” a location where individuals could easily obtain prescriptions for powerful pain killers such as oxycodone with little or no documented need. Armed guards patrolled the parking lots. Customers paid cash to obtain prescription drugs which were then abused and/or sold to others. Large doses of the drugs were routinely prescribed. Lang later opened Primary Care, and while she made some effort to present a more “legitimate” business, engaged in the several of the same illegal practices.
Records obtained from the State of Tennessee showed that Sherard and Larmore prescribed more narcotics than all but about 10 of the more than 20,000 prescribers in the state and routinely prescribed dangerous amounts and combinations of opioids and other narcotics. The jury heard evidence from clinic landlords, neighbors, customers, medical providers, wiretaps, and law enforcement officials that drug-seeking customers travelled hours to come to the clinics, engaged in drug activities around the clinics, and traded pills for cash. Customers would be given prescriptions even after they had failed drug tests, admitted abusing or selling drugs, or failed to document a medical need for the medication. During the seven months that it operated, Superior One generated over $2 million. During the 11 months that it operated, Primary Care generated approximately $2 million. The jury heard evidence that Lang “skimmed” approximately $175,000 from Primary Care that she did not report to the IRS. When agents searched her house they found a money-counting machine and $234,333 in cash in a safe.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Lang, Blake, Sherard and Larmore included the Drug Enforcement Administration, Tennessee Bureau of Investigation, Hamilton County Sheriff’s Office, Chattanooga Police Department, Roane County Sheriff’s Department, and Rockwood Police Department. Assistant U.S. Attorneys Gregg L. Sullivan and Michael D. Porter represented the United States at trial. Assistant U.S. Attorney Tracy Stone prosecuted other individuals involved in the drug conspiracies.
Federal Grand Jury Indicts Hunt County Man on Felony Firearm OffenseRead the Press Release
DALLAS — A grand jury in Dallas has indicted a Hunt County, Texas, man on a federal firearm offense, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Lee Clinton Hobdy, 36, of Commerce, Texas, is charged with one count of being a convicted felon in possession of a firearm.
The indictment alleges that in late August 2014, Hobdy, a convicted felon, knowingly and unlawfully possessed a Glock, .45 caliber pistol.
Hobdy is currently in custody on related state charges. A date has not yet been set for him to make his initial appearance in federal court.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, Hobdy faces a mandatory minimum 15-year sentence and a maximum sentence of life imprisonment.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Commerce Police Department are investigating. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay is in charge of the prosecution.
Federal Court Sentences Davenport Woman on Escape from Federal CustodyRead the Press Release
DAVENPORT, IA - On January 22, 2015, Kenra Sharay Campbell, age 29, of Davenport, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 18 months in prison, after pleading guilty to escape from federal custody, announced United States Attorney Nicholas A. Klinefeldt. Campbell was also ordered to serve two years of supervised release following the imprisonment, and to pay $100 to the Crime Victims Fund.
On August 6, 2014, Campbell escaped from the Davenport Work Release Center, where she was serving the remainder of a federal sentence for felon in possession of a firearm. On August 8, 2014, the United States Marshals Service arrested Campbell in Moline, Illinois.
This case was investigated by the United States Marshals Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Federal Court Sentences Davenport Man for Conspiracy to Distribute MarijuanaRead the Press Release
DAVENPORT, IA - On January 22, 2015, Justin Scott Coffey, age 30, of Davenport, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 63 months in prison, after pleading guilty to conspiracy to distribute marijuana, announced United States Attorney Nicholas A. Klinefeldt. Coffey also was ordered to serve four years of supervised release following the imprisonment, and to pay $100 to the Crime Victims Fund.
From June 2007 to April 2013, Coffey and other individuals entered into an agreement to distribute over 100 kilograms of marijuana. During this time period, Coffey traveled to California and arranged for the purchase of multiple pound quantities of marijuana. Coffey mailed packages of marijuana back to other Iowa co-conspirators for re-distribution in the Quad Cities area. Coffey also transported marijuana and drug proceeds himself in and out of Iowa.
This case was investigated by the U.S. Drug Enforcement Administration and the Quad CityMetropolitan Enforcement Group (QCMEG). The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Fair Oaks Resident Sentenced to More Than 8 Years for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Aleksandar Randjelovich, 39, of Fair Oaks, was sentenced today by United States District Judge Troy L. Nunley to eight years and two months in prison for receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, law enforcement agents identified a computer operating out of Randjelovich’s residence offering files of child pornography through a file-sharing network. After executing a search warrant, agents found 1,276 videos and 3,690 images containing child pornography. In Randjelovich’s plea agreement entered on July 3, 2014, he admitted that he would download the files four to six times per week from about September 3, 2008 until October 12, 2012. The files included images of bondage and of toddlers being sexually molested by adults.
“The large volume of child pornography this defendant possessed make it clear he harbored a dangerous sexual interest in children and posed a threat to our community,” said Ray Greenlee, assistant special agent in charge for HSI Sacramento. “This lengthy prison term will prevent him from preying on children and continuing to perpetuate the cycle of victimization that occurs when child pornography is downloaded from the Internet.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Special Assistant United States Attorney Josh F. Sigal prosecuted the case.
Randjelovich was remanded into federal custody after today’s sentencing hearing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Executive of Japanese Automotive Parts Manufacturer Indicted for Role in Conspiracy to Fix PricesRead the Press Release
A Detroit federal grand jury returned a one-count indictment against an executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of seatbelts, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hiromu Usuda, an executive at Takata Corp., with conspiring to rig bids for, and to fix, stabilize and maintain the prices of, seatbelts sold to Toyota Motor Corp., Honda Motor Company Ltd., Nissan Motor Co. Ltd., Mazda Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and/or certain of their subsidiaries, for installation in vehicles manufactured and sold in the United States and elsewhere. Usuda served as Group and Department Manager in the Customer Relations Division at Takata, from January 2005 until at least February 2011.
“Antitrust violators who refuse to accept responsibility for their crimes leave us no choice but to indict,” said Brent Synder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “We will continue to prosecute those that commit these crimes.”
The indictment alleges, among other things, that from at least Jan. 1, 2005, through at least February 2011, Usuda and others attended meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of seatbelts sold to the automobile manufacturers. It alleges that Usuda participated directly in the conspiratorial conduct and that he directed, authorized and consented to his subordinates’ participation.
Takata is a Tokyo-based manufacturer of automotive parts, including seatbelts. Takata supplies automotive parts to automobile manufacturers in the United States, in part, through its U.S. subsidiary, TK Holdings Inc., located in Auburn Hills, Michigan. Takata pleaded guilty on Dec. 5, 2013, for its involvement in the conspiracy, and was sentenced to pay a criminal fine of $71.3 million. Four other executives from Takata have pleaded guilty, have been sentenced to serve time in a U.S. prison and to pay criminal fines for their roles in the conspiracy.
Including Usuda, 50 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
Usuda is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Eufaula Woman Pleads Guilty to Obstruction of JusticeRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that LINDA LUE ADAMS, a/k/a LINDA CORLEY, a/k/a LINDA MARTIN, age 68, of Eufaula, Oklahoma, pled guilty to Obstruction of Justice, in violation of Title 18, United States Code, Section 1512(c)(2).
The charge arose from an investigation by the Social Security Administration, Office of Inspector General.
The Information alleges that on or about the 12th day of December, the defendant, did corruptly attempt to obstruct, influence, and impede an official proceeding, to wit: an impending grand jury investigation of social security fraud in which the defendant and others were benefiting from social security disability payments to which they were not entitled, by making materially false statements regarding the involvement of other persons in the fraud for the purpose of preventing the prosecution of those other persons.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 20 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Rob Wallace represented the United States.
Esmond Street Career Criminal Sentenced to 16 Years for Drug TraffickingRead the Press Release
BOSTON – A Boston man was sentenced yesterday to 16 years in federal prison for drug trafficking and firearm charges.
Gerald Smith, a/k/a “G-Man,” 38, of Boston, was sentenced yesterday to 16 years in prison and five years of supervised release. In October 2014, Smith pleaded guilty before U.S. District Court Judge Richard G. Stearns to two counts of distribution of cocaine base, possession with intent to distribute 280 grams or more of cocaine base, and being a felon in possession of a firearm and ammunition.
Smith was a long-time Boston-based crack cocaine trafficker who regularly sold crack cocaine in the Esmond Street neighborhood of Boston, an area plagued by drug, gun, and gang violence. During their investigation, federal agents used a cooperating witness and an undercover police officer to purchase crack cocaine from Smith over a dozen times. When agents executed a search warrant at an apartment in Revere used by Smith, they seized nearly a kilogram of cooked crack cocaine ready for street-level sale and a loaded firearm.
Due to his criminal history, Smith faced a 15-year mandatory minimum sentence for possessing a firearm and a 10-year mandatory minimum sentence for possessing more than 280 grams of crack cocaine with intent to distribute.
At the sentencing hearing, the government recommended that the Court sentence Smith to 16 years in prison based, in large part, on Smith’s criminal record. This is Smith’s fourth drug trafficking conviction and he has previously been sentenced to state prison twice before for drug trafficking.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement. The case was prosecuted by Assistant U.S. Attorney Christopher Pohl of Ortiz’s Organized Crime Strike Force Unit.
Employee of Deep River Gun Manufacturer Pleads Guilty to Federal Firearms ViolationsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RICHARD CUMMINGS, 43, of East Haddam, pleaded guilty yesterday in Bridgeport federal court to violating federal firearms laws. CUMMINGS worked as a manager at Tri-Town Plastics (“Tri-Town”), a former federally-licensed firearms manufacturer located in Deep River.
According to court documents and statements made in court, in 2011 and 2012, Tri-Town had a contract with Smith and Wesson to manufacturer firearm frames at its Deep River facility. In February 2012, after the Plainfield Police Department seized a Smith and Wesson 9 millimeter handgun from a residence, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Smith and Wesson had no record of the handgun ever having been manufactured. According to Tri-Town’s records, the handgun had been scrapped in March 2011. At that time, ATF was preparing to conduct a routine inspection of Tri-Town to determine whether to renew their federal license to manufacture firearms. Tri-Town had also been inspected in 2009 and been directed by ATF to address some record-keeping issues discovered during that inspection. When CUMMINGS and a Tri-Town employee who was his subordinate discovered that there were approximately 23 firearms missing from their inventory, rather than report them as missing, CUMMINGS directed the employee to falsely list them as “scrapped” in Tri-Town’s acquisition and disposition records so that ATF would not learn that they were missing and would renew Tri-Town’s license.
In pleading guilty, CUMMINGS admitted that it was his decision to list the firearms as scrapped, at no point prior to the February 2012 Plainfield seizure did he report these firearms as missing or lost and, in February 2012, he failed to correct Tri-Town’s acquisition and disposition records to show the missing firearms.
Later, it was learned that five of the 23 firearms were not, in fact, missing, so that the total number of unaccounted firearms remains 17 (not including the one seized in Plainfield).
CUMMINGS pleaded guilty before U.S. District Judge Stefan R. Underhill to one count of making a false entry in a firearms manufacturer’s acquisition and disposition records in March 2011, one count of failing to file a theft/loss report between March 2011 and February 2012, and one count of failing to maintain a firearms manufacturer’s acquisition and disposition records in February 2012. The maximum penalty on each of these misdemeanor charges is one year of imprisonment, five years of probation and a $100,000 fine.
Sentencing is scheduled for April 15, 2015.
Smith and Wesson purchased Tri-Town in May 2014 and now owns the facility.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Plainfield Police Department. The case is being prosecuted by Assistant U.S. Attorneys Robert M. Spector and Vanessa Richards.
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[email protected]Dundalk Man Pleads Guilty to Aiming A Laser Pointer at A Police HelicopterRead the Press Release
Baltimore, Maryland – James Robert Hensler, age 24, of Dundalk, pleaded guilty late yesterday to aiming the beam of a laser pointer at an aircraft.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
“The FBI has aggressively investigated numerous people who have pointed lasers at aircraft since Congress passed the law in 2012,” said Stephen Vogt, FBI Special Agent in Charge of the Baltimore Division. “People may think of this as a harmless prank, but pointing a laser at a pilot creates an undeniable danger for everyone on board that aircraft. We ask the public to contact us with any information they may have about similar incidents.”
Chief James Johnson of the Baltimore County Police Department stated, “I am glad that this case has come to a positive conclusion and Mr. Hensler is being held accountable. Pointing a laser pointer at any aircraft is a serious matter, as it threatens the lives of those on the aircraft as well as people on the ground. In this incident, the crew of the Baltimore County Police helicopter was lucky that the use of the laser pointer did not lead to a tragic loss of life.”
According to Hensler’s plea agreement and other court documents, on September 30, 2014, a Baltimore County Police helicopter was flying over the area of Patapsco High School when the cockpit was illuminated twice by a green laser beam. Two flight officers in the helicopter put a spotlight on the person whom they saw illuminate the cockpit and called for ground units to respond. Arriving ground units saw Hensler in the area and questioned him. Hensler denied having anything to do with the laser. The flight officers directed the ground officers to a location where they had seen Hensler put his hand prior to the ground officers’ arrival. The responding officers located and seized the laser pointer. After being shown the laser pointer, Hensler admitted that he had used the laser pointer to hit the helicopter because he wanted to see how far the laser could shine.
Hensler faces a maximum of five years in prison, followed by three years of supervised release, and a $250,000 fine. U.S. District Judge Ellen L. Hollander has scheduled sentencing for March 25, 2015.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Harvey E. Eisenberg, who is prosecuting the case.
Defendant Sentenced on Federal Firearm ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that Carman Jeffery Johnson, Jr. of Mobile was sentenced, following an October 2014 guilty plea to a charge of being a prohibited person in possession of a firearm. Johnson was previously convicted in Mobile County of Possession of Marijuana First Degree, and Possession of a Firearm with Altered Identification in 2012. By virtue of these convictions, Johnson is prohibited from possessing firearms or ammunition.
On April 11, 2014, Johnson had two outstanding warrants for probation violations. Johnson was located at Campus Quarters Apartments on University Boulevard by the United States Marshal Service Fugitive Task Force. Johnson was taken into custody, and his backpack was searched incident to his arrest. In the backpack was a MAC 10, .45 caliber pistol, with 27 bullets in the magazine, a box containing 23 bullets, approximately twelve bags of marijuana/spice, and a stolen Glock .40 caliber pistol, with a laser and a magazine in the pistol loaded with 11 rounds of ammunition.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1). Chief United States District Court Judge William H. Steele imposed a 100 month sentence of imprisonment, to be followed by 3 years supervised release.
This case was referred for prosecution by Officer Shaun Wood of the Mobile County Street Enforcement Narcotics Team, who worked in coordination with Special Agent Lisa Reiter of the Federal Bureau of Investigation.
Davenport Man Sentenced to 15 ½ Years for Heroin TraffickingRead the Press Release
DAVENPORT, IA – On January 22, 2015, Demario Dante Palmer, age 36, of Davenport, Iowa, was sentenced by United States District Judge Stephanie M. Rose to 186 months in prison for conspiracy to distribute heroin, announced United States Attorney Nicholas A. Klinefeldt. Palmer was also ordered to serve five years of supervised release following the imprisonment and to pay $100 to the Crime Victims Fund.
Palmer distributed heroin to various customers in the Davenport area beginning by at least 2008 and continuing until June 30, 2014. Palmer obtained portions of the heroin he distributed from sources in the Chicago area. Palmer utilized other persons during this time period to assist him in obtaining heroin from Chicago, including recruiting others to drive him (or other persons acting on his behalf) to Chicago for the purpose of bringing heroin to Davenport to further distribute. Palmer also utilized other persons to assist him with distributing heroin to his customers. On June 30, 2014, pursuant to a warrant, police searched Palmer’s residence in Davenport. Police located approximately 7.5 grams of heroin in 20 individually packaged baggies, packaging material, a digital scale, and a firearm, all of which belonged to Palmer. The quantity of heroin distributed by Palmer exceeded 1 kilogram.
This case was investigated by the Davenport, Iowa, Police Department and the Iowa Department of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Dallas Man Associated with Anonymous Hacking Group Sentenced to 63 Months in Federal PrisonRead the Press Release
DALLAS — Barrett Lancaster Brown, 33, who has been associated with the hacking group, Anonymous, was sentenced today by U.S. District Judge Sam A. Lindsay to serve a total of 63 months in federal prison and pay $890,250 in restitution, following his guilty pleas last year to three separate offenses. The announcement was made this afternoon by John Parker, Acting U.S. Attorney for the Northern District of Texas (NDTX).
In April 2014, Brown pleaded guilty to three separate offenses that essentially resolved all three criminal Indictments pending against him in the NDTX.
Pursuant to the plea agreements, Brown pleaded guilty to the felony offense of transmitting a threat to an FBI Special Agent in interstate commerce, as charged in an indictment returned by a federal grand jury in Dallas in October 2012. He also pleaded guilty to both counts of a superseding information that was filed on March 31, 2014, charging the felony offense of being an accessory after the fact to the unauthorized access to a protected computer and with the misdemeanor offense of interfering with the execution of a search warrant and aiding and abetting another person’s interference with the execution of a search warrant.
The Dallas office of the FBI investigated.
Couple Charged with Recruiting A Minor for PrositutionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jacob Shamp, 23, and Ashlee Cook, 24, both of Leichester, NY, were arrested and charged by criminal complaint with recruiting an underage girl to commit a commercial sex act and conspiracy to do so. The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life and a $250,000 fine.Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that according to the complaint, the couple posted an ad on Backpage.com, advertising a minor victim for prostitution. Law enforcement officers conducted an undercover operation and arranged to meet the girl in Gates, NY. When officers arrived, they took a statement from the minor victim.
Shamp and Cook made an initial appearance this afternoon before U.S. Magistrate Judge Jonathan W. Feldman. Shamp is being held without bail pending a detention hearing on January 27, 2015 at 10:00 a.m. Cook was released on her own recognizance and will return to court on February 5, 2015 at 9:00 a.m. for a status conference.
The criminal complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation, and the State Police, under the direction of major Craig Hanesworth.
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.
Co-defendants Get Significant Sentences for Multiple Child Pornography ConvictionsRead the Press Release
HOUSTON – William Craig Noonan, of Houston, 39, and David Morse Barry, formerly of Wichita Falls, 55, have been ordered to federal prison for 30 and 27 years, respectively, following their multiple convictions including conspiracy to produce child pornography involving two prepubescent children, announced U.S. Attorney Kenneth Magidson
Today, U.S. District Judge Lee H. Rosenthal, handed Noonan a sentence of 360 months for each of the two counts of conspiracy to produce and one count of distribution of child pornography as well as 120 months for possession of child pornography. The sentences will be served concurrently for a total 30-year federal sentence. Barry will serve a total of 324 months for his convictions. Both Noonan and Barry will be on supervised release for life following completions of their prison terms.
Noonan, a registered sex offender, pleaded guilty March 26, 2014, while Barry proceeded to trial in May 2014. Following the five-day bench trial, Judge Rosenthal found him guilty on two counts of conspiracy to produce and two counts of production of child pornography.
Both have been in custody where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, investigated by the Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Sherri L. Zack and Bob Stabe, 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."
Carroll, Iowa Man to Federal Prison for Possession of A Firearm and Meth ConspiracyRead the Press Release
Contact: Steve Young
A man who conspired to distribute methamphetamine was sentenced January 7, 2015, to ten years in federal prison.
Salvador Guiterrez, 41, from Carroll, Iowa, received the prison term after a July 31, 2014, guilty plea to conspiring to distribute methamphetamine and possession of a firearm during and in relation to a drug trafficking crime.
At the guilty plea, Gutierrez admitted his involvement in a conspiracy from 2013 through March 20, 2014 that distributed at least 812 grams of methamphetamine in the Carroll and Denison, Iowa, area. Gutierrez also admitted his possession of a firearm when he distributed methamphetamine.
Gutierrez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Gutierrez was sentenced to 120 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Gutierrez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jamie Bowers and investigated by the Iowa Department of Narcotics Enforcement, Iowa Division of Criminal Investigations, Carroll County Sheriff’s Office, Carroll, Iowa, Police Department, and the Denison, Iowa, Police Department.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-3031.
California Charter Bus Company Bookkeeper Sentenced to Prison for Tax Fraud and Bank Home Mortgage FraudRead the Press Release
A San Jose, California, woman was sentenced to serve 22 months in prison to be followed by three years of supervised release for committing tax fraud and bank fraud, Principal Deputy Assistant Attorney General Caroline D. Ciraolo for the Justice Department’s Tax Division and U.S. Attorney Melinda Haag for the Northern District of California announced today.
Elena Moreno, 40, was also ordered to pay $422,962.13 in restitution and to forfeit $3.328 million as well as her interest in two pieces of real property. Prior to pleading guilty in this case, Moreno and her co-defendants, Arturo and Fidencio Moreno, paid more than $200,000 in restitution to the Internal Revenue Service (IRS) for losses associated with their fraud.
According to court documents, beginning in 2005 and continuing through at least 2010, family members Arturo Moreno, Elena Moreno and Fidencio Moreno conspired to defraud the United States by failing to report all of the gross receipts from their charter bus company, Quality Assurance Travel (QAT), on the corporate tax returns for QAT and on their personal income tax returns that they filed with the IRS. The total amount of unreported gross receipts during those years exceeded $966,908. Arturo and Fidencio Moreno were each 50 percent owners of QAT. The unreported income consisted primarily of cash receipts that were paid by passengers as they boarded the bus, but were not deposited into the business bank accounts or disclosed to the Moreno’s tax return preparer.
According to court documents, between 2005 and July 2013, Elena Moreno and her co-defendants also conspired to commit bank fraud and wire fraud by submitting false and fraudulent loan applications that overstated the applicants’ income and assets in order to acquire and refinance homes in San Jose. In total, the defendants fraudulently obtained more than $3.3 million in loans through their conspiracy. After the defendants fell behind with the loan payments, they attempted to avoid foreclosure by submitting false and fraudulent applications to modify these loans. One of the four properties was ultimately sold through a short sale in 2013, while another was foreclosed upon in 2014. The total losses to the financial institutions resulting from the foreclosure exceeded $200,000.
The case was investigated by IRS-Criminal Investigation. Trial Attorney Todd P. Kostyshak of the Tax Division and Assistant U.S. Attorneys Thomas Moore and Katherine L. Wong prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Brooklyn Man Pleads Guilty to Enticing A Minor to Engage in Sexual ConductRead the Press Release
Earlier today at the federal courthouse in Brooklyn, Andrew Goodman pled guilty to soliciting and enticing a minor victim to engage in sexual conduct. The victim was between 12 and 15 years of age during the time of the abuse.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
Goodman began his sexual abuse in 2006 when the victim was 12 years old. Over the next several years, Goodman sexually assaulted the victim multiple times a week. At the plea proceeding, Goodman admitted that he communicated with the victim by telephone regarding his intention to engage in sexual activity. Previously, Goodman had been convicted in New York State court of 48 counts of sexually abusing the same minor, as well as second victim, and for those crimes served two years in prison.
“The defendant Goodman systematically and deliberately stole the victim’s childhood through repeated sexual assaults over the course of several years. He will now be held to account for this violation,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, the agency that led the government’s investigation, and thanked the Kings County District Attorney’s Office for its assistance in this case.
Today’s plea proceeding took place before United States District Judge Margo K. Brodie. When sentenced, Goodman faces a mandatory term of at least ten years in prison, as well as forfeiture, restitution, a fine of up to $250,000, and mandatory registration as a sex offender. Sentencing has been scheduled for April 24, 2015. Goodman has been in federal custody since his arrest on the federal charges in July 2012.
The government’s case is being prosecuted by Assistant United States Attorneys Tyler J. Smith and Ameet Kabrawala.
This case was brought as part of Project Safe Childhood, a nationwide initiative to protect children by combatting the sexual exploitation and abuse of minors. Led by the United States Attorneys’ Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The Defendant:
ANDREW GOODMAN
Age: 30
Brooklyn, New York
E.D.N.Y. Docket No. 12-CR-614 (MKB)
Bangor Resident Sentenced to Six Years in Prison for Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Gina
Nelson, 31, of Bradley, Maine was sentenced yesterday in U.S. District Court by Judge John A.
Woodcock, Jr. to 72 months in prison and 3 years of supervised release for conspiracy to possess
with the intent to distribute and to distribute MDPV, a chemical compound commonly referred to
as “bath salts” or “monkey dust.”According to court records, between April and December 2011, the defendant illegally
distributed MDPV in Penobscot County and elsewhere. The defendant distributed MDPV to
others who were using and selling the drug in the Bangor area. In November 2011, following the
search of a co-conspirator’s residence in Bangor and the seizure of a large amount of MDPV, the
defendant assisted another person in removing from the residence MDPV that the police had not
found during their search. This additional quantity of MDPV was eventually distributed to
another person, who was later caught by law enforcement. Nelson is one of eighteen defendants
who pleaded guilty to conspiring with Ryan Ellis and others to distribute the drug. Ellis
previously pleaded guilty and awaits sentencing.
The case was investigated by the Maine Drug Enforcement Agency with assistance from
the U.S. Drug Enforcement Administration.Baltimore Career Offender Exiled to over 17 Years in Prison for Bank Robbery ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr., sentenced Master Giddins, age 26, of Baltimore, today to 210 months in prison, followed by three years of supervised release, for bank robbery and for conspiring to commit three bank robberies. Judge Quarles also ordered Giddins to pay restitution of $10,099. Giddins was convicted by a federal jury on October 3, 2014. Judge Quarles found that Giddins was a career offender based on previous convictions for first degree assault, a firearms violation, and a federal arson conviction.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to the evidence presented at Giddins’ four day trial, on September 25, 2013, Giddins robbed the M&T Bank on West Baltimore Street in Baltimore. Giddins was wearing women’s clothing and a long black wig. Giddins handed a note to the teller stating that he had a bomb and demanded money. Giddins told the teller to put the money in a black and white polka dot cosmetic bag which Giddins gave the teller. The teller put cash and a GPS tracking device in the cosmetic bag and handed it to Giddins. Giddins fled the bank but discarded the tracking device out the car window. A woman co-conspirator drove Giddins’ car away from the bank.
On September 26, 2013, Giddins provided his car to two women co-conspirators in order to rob another bank. The women robbed the 1st Mariner Bank in Owings Mills, stealing $3,100. The women wrote a note similar to the one used by Giddins the day before; the same woman co-conspirator drove Giddins’ car; and the woman who went into the bank wore the same long black wig and used the same black and white polka dot cosmetic bag as Giddins. According to trial testimony, the proceeds of the robbery were split between Giddins and the two women.
On September 27, 2013, Giddins again provided his car to the two co-conspirators to commit a bank robbery at the Baltimore County Savings Bank located in the 500 Block of Eastern Avenue in Baltimore County. The two co-conspirators were joined by a third woman. The same woman drove Giddins’ car and the other two women entered the bank, wearing wigs. The two women each gave a teller a note claiming that they had a bomb and demanded money. The tellers provided each of the robbers with cash and a dye pack. The two robbers got into the car driven by the third co-conspirator. One of the dye packs exploded when the robbers left the bank. The other dye pack exploded in the car and the women threw it out of the car, along with the wigs and some other items, which were later recovered. Police stopped the car, recovered evidence from the car and the scene, and arrested the women.
Giddins went to Baltimore County Police headquarters to get his car back. When he arrived, Giddins was questioned by police about the September 25th robbery. Giddins told the police that he was at his state probation officer’s office and then went to work. Witnesses testified that Giddins did not meet his probation officer on September 25, 2013, nor did he work that day.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Debra L. Dwyer, who prosecuted the case.
Assistant Hunting Guide Sentenced for Unlawful Take of Caribou on Arctic National Wildlife RefugeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Montana resident was sentenced in U. S. District Court in Fairbanks on Tuesday, on charges that he unlawfully provided guiding services to a hunting client for the illegal taking of a caribou in the Arctic National Wildlife Refuge (ANWR).
Jason J. Kummerfeldt, 45, of Billings, Montana, pled guilty to a violation of the Lacey Act for the sale of unlawfully taken and possessed wildlife. United States Magistrate Judge Scott A. Oravec, in Fairbanks, sentenced Kummerfeldt at the time of his guilty plea. The court ordered Kummerfeldt to pay a $3,000 fine, not to do any big-game guiding or be with anyone guiding in the United States for two years, and not to hunt or be with anyone hunting in the United States for six months. Under the terms of a plea agreement, the fine will be directed to the Lacey Act Reward Account to aid future investigations of fish and wildlife violations. A second count of violating the Lacey Act was dismissed upon the court’s acceptance of the guilty plea. The charges stem from Kummerfeldt’s employment as an Alaska assistant big game guide on commercially-guided hunts in August 2009. His employer, Fair Chase Hunts, was operated within ANWR by Christopher Cassidy and Joe Hendricks.
According to Assistant U.S. Attorney Stephen Cooper, the facts brought out at the court hearing showed that Kummerfeldt guided his client in shooting and transporting a bull caribou before the client had purchased the required non-resident locking tag. As the on-site guide, Kummerfeldt was required to ascertain before the hunt that his client had purchased and possessed the tag, and was also required to report to authorities any known violations of the game laws. At the time he assisted the client in the stalk and authorized the killing shot, Kummerfeldt knew the client did not have the required tag. He failed to report this violation, and he assisted in transporting the animal back to base camp.
Investigation of Fair Chase Hunts by the U.S. Fish and Wildlife Service, Office of Law Enforcement, has thus far led to the successful prosecution of 16 guides, employees, and clients involved in at least 116 documented violations of the Lacey Act, National Wildlife Refuge Act, and Alaska State Law from 2005-2009. Those convicted on pleas of guilty included registered guide Christopher Cassidy, sentenced in June 2011, and master guide Joe Hendricks, sentenced in August 2012. Fines totaled $273,000 in all these cases, in addition to $22,500 in community service or other directed payments. In the same cases the court also imposed a total of 31 years of suspension of hunting and/or guiding privileges, and the forfeiture of four Dall sheep, two grizzly bears, one caribou, and one rifle.
Karen L. Loeffler, U.S. Attorney for the District of Alaska, noted: “Alaska’s wildlife resources are one of the many wonders that make Alaska special. With our partners at the U.S. Fish and Wildlife Service we are committed to protecting these resources and managing the important goals of access for recreation and hunting and conservation for the future by vigorous enforcement of the applicable laws and regulations.”
Ryan Noel, Special Agent in Charge of the U.S. Fish and Wildlife Service, Office of Law Enforcement for Alaska said: “The Fish and Wildlife Service is committed to protecting America’s wildlife resources that are at risk from illegal commercialization. The violations uncovered during this investigation are flagrant examples of this illegal commercialization. The sentence imposed by the court sends a message that such violations of wildlife law will not be tolerated.”
Ms. Loeffler commends the U.S. Fish & Wildlife Service, Office of Law Enforcement for Northern Alaska, for the investigation of this case.
Antitrust Division Announces Fiscal Year Total in Criminal Fines CollectedRead the Press Release
The Department of Justice collected $1.861 billion in criminal fines and penalties resulting from Antitrust Division prosecutions in the fiscal year that ended on Sept. 30, 2014. Contributing in part to one of the largest yearly collections for the division, five of the companies paid in full penalties that exceeded $100 million, including a $425 million criminal fine levied against Bridgestone Corp., the fourth-largest fine the Antitrust Division has ever obtained. The second-largest fine collected was a $195 million criminal fine levied against Hitachi Automotive Systems Ltd. The three additional companies that paid fines and penalties exceeding $100 million were Mitsubishi Electric Corp. with $190 million, Toyo Tire & Rubber Co. Ltd. with $120 million and JTEKT Corp. with $103.2 million. The collection total also includes penalties of more than $561 million received as a result of the division’s LIBOR investigation, which has been conducted in cooperation with the Justice Department’s Criminal Division. In addition, in the last fiscal year the division obtained jail terms for 21 individual defendants, with an average sentence of 26 months, the third-highest average ever.
“The size of these penalties is an unfortunate reminder of the powerful temptation to cheat the American consumer and profit from collusion,” said Assistant Attorney General Bill Baer for the Antitrust Division. “We remain committed to ensuring that corporations and individuals who collude face serious consequences for their crimes.”
Andover Man Pleads Guilty to Social Security FraudRead the Press Release
BOSTON – An Andover man pleaded guilty today to stealing more than $149,000 in government benefits.
Graeme Griffith, 60, pleaded guilty to theft of public money. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for April 16, 2015. In January 2015, Griffith was charged in a felony Information.
In 2003, Griffith’s father died, but his monthly Social Security benefits continued to be directly deposited into a joint bank account in his and Griffith’s names. From 2003 to 2014, Griffith continued to receive his deceased father’s benefits totaling $149,285.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.
One of the ways the Social Security Administration detects this kind of fraud is through the Medicare Non-Utilization Project, in which the agency investigates people receiving benefits who are at least 90 years old and who have not used their Medicare Part B benefits for three or more years. In some instances, the agency learns that such a person is actually deceased, but a surviving child has continued to take the deceased person’s benefits.
Since October 2013, the U.S. Attorney’s Office has prosecuted several such cases involving a total of more than $1 million in stolen government money:
In October 2014, Charles Gerbutavich, of Manchester, pleaded guilty to taking his deceased father’s Social Security benefits totaling $161,587, which were directly deposited into a joint bank account after the father’s death in 1993. Gerbutavich is scheduled to be sentenced on Feb. 3, 2015.
Also in October 2014, Mary Murphy, of Dorchester, was sentenced to 18 months of home confinement, 10 hours per week of community service, and was ordered to pay a fine of $40,000 and $331,630 in restitution – which she paid in full in October. Murphy pleaded guilty in connection with taking her deceased mother’s Social Security and Civil Service retirement benefits, which were directly deposited into a joint bank account after her death in 1977.
Also in October 2014, Richard Oldham, of Old Orchard Beach, Maine, was sentenced to four months in prison, six months of home confinement, and was ordered to pay $195,862 in restitution for endorsing Social Security checks in his deceased mother’s name following her death in 1993.
In September 2014, Frances Kenney Moseley, of Boston, pleaded guilty to stealing over $220,000 in Social Security benefits, which were directly deposited into her father’s bank account after his death in 2003. Moseley is scheduled to be sentenced on March 23, 2015.
In August 2014, George Bergstrom, of Shrewsbury, was sentenced to one year of probation and was ordered to pay $57,948 in restitution – which he paid in full in August – for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 2009.
In October 2013, John Flaherty, of Newburyport, was sentenced to 10 months in prison and was ordered to pay $168,830 in restitution for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 1993.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Allentown Man Pleads Guilty to Tax Refund SchemeRead the Press Release
PHILADELPHIA - Andys O. Rodriguez, 26, of Allentown, PA, was sentenced today to 30 months imprisonment and 3 years supervised release. U.S. District Court Judge Lawrence F. Stengel also ordered restitution of $2,904,783.64. Rodriguez admitted at his guilty plea that between August 17, 2010 and January 31, 2012, he knowingly filed false tax returns with the IRS claiming refunds in the names of other individuals. The returns included W-2 forms falsely claiming that taxes were withheld by various employers. The IRS identified more than 600 false returns that were associated with this scheme. These returns, which were filed electronically, claimed refunds totaling $2,904,783.64.
The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States David J. Ignall.
Acoma Pueblo Man Pleads Guilty to Failure to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Mervin Hayah, 47, a member and resident of Acoma Pueblo, N.M., pled guilty this morning for failing to comply with the Sex Offender Registration and Notification Act (SORNA).
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Hayah was arrested on Nov. 20, 2013, in Grants, N.M., on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. On Dec. 17, 2013, Hayah was indicted for failing to update his registration between July 2013 and Oct. 2013 in Cibola County, N.M.
According to court filings, Hayah was convicted of a federal child sexual abuse offense in April 2002. On July 15, 2011, Hayah registered as a sex offender in Cibola County, N.M., and on April 29, 2013, he registered as a sex offender with the Acoma Pueblo Police in Acoma Pueblo. When he registered with Acoma Pueblo, Hayah was informed that he was required to update his registration by July 29, 2013. Records reflect that Hayah failed to update his registration as required.
Today Hayah pled guilty to the indictment. At sentencing, Hayah faces a statutory maximum penalty of ten years in prison. Hayah has been in federal custody since his arrest and remains detained pending his sentencing hearing.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and David Adams.
10-Year Sentence for Undocumented Alien for Conspiracy to Transport and Harbor Other AliensRead the Press Release
BROWNSVILLE, Texas - Raul Ramirez-Martinez, 36, an undocumented alien from Queretaro, Mexico, has been sentenced on a multi-count indictment charging conspiracy to transport and harbor aliens and illegal re-entry after removal/deportation, announced U.S. Attorney Kenneth Magidson. Ramirez-Martinez, a previously deported illegal alien, pleaded guilty in May 2014.
Today, U.S. District Judge Andrew S. Hanen handed him a sentence of 120 months on each of the charges, to be served concurrently. At the hearing, the government presented evidence that Ramirez-Martinez, who had a prior alien smuggling conviction in 2006, was the leader of the smuggling organization. He is expected to face deportation proceedings following his release from prison.
The charges arose following the discovery of 72 illegal aliens at a stash house in Brownsville.
Co-defendant Rodrigo Gonzalez-Alvarez, 22, went to trial in June 2014. At that trial, agents with the Fraud, Intelligence, Smuggling and Terrorism Unit (FIST), Homeland Security Investigations (HSI) and U.S. Border Patrol, testified that on March 27, 2014, they learned a group of suspected illegal aliens were being harbored at a residence on Coral Court in Brownsville. The investigated and discovered a total of 72 individuals, all undocumented aliens from different countries - Guatemala, Bolivia, Honduras and El Salvador.
At that time, agents also recovered a cell phone which they used to call other conspirators saying they had escaped the stash house as it was raided by immigration agents. As a result, Ramirez-Martinez and other alien smugglers were arrested as they attempted to pick up the “aliens” who had run from the house.
Further investigation ultimately led agents to a trailer in Olmito where they arrested Gonzalez-Alvarez and others. Testimony at trial included the recovery of “ledgers” with names of smuggled aliens, some who had already transported north. Aliens held at the house testified they were initially kept at the trailer in cramped, standing-room only conditions before being taken to the stash house.
Further testimony revealed Ramirez-Martinez was in charge of the alien smuggling organization. The illegal aliens, who paid up to $4,000 each, were turned over to him for harboring and transportation north.
In addition to Ramirez-Martinez, those arrested and already sentenced include Claudia Cerda-Lucio who received a 34-month prison sentence; Gonzalez-Alvarez - 60 months; Rafael Hernandez - five years probation; Miguel Pucheta-Malaga - 24 months; and Rafael de la Cruz-Bautista - 46 months. With the exception of Gonzalez-Alvarez, all pleaded guilty.
Ramirez-Martinez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by agents of the FIST unit, HSI and U.S. Border Patrol and prosecuted by Assistant U.S. Attorney Oscar Ponce.
Wednesday 21 January 2015
Woman Sentenced for Food Stamp FraudRead the Press Release
MOBILE, Ala. – Barbara Nell Bush, 46, of Opelika, Alabama, was sentenced today in federal court for fraudulent use of EBT benefits. Bush entered a guilty plea to the charge in August of 2014. United States District Court Judge Callie V. S. Granade imposed a sentence of 18 months imprisonment and ordered that Bush pay $760.65 in restitution to the Department of Agriculture. The judge also ordered that Bush serve three years of supervised release, which will begin immediately after her release from imprisonment. Bush was ordered to undergo drug testing and treatment as a condition of her supervision.
The case was investigated by the 4th Judicial Circuit Task Force, the United States Secret Service and the Department of Agriculture. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Wichita Woman Sentenced for Operating a Prostitution BusinessRead the Press Release
WICHITA, KAN. – A Wichita woman was sentenced to two years on federal probation for operating a prostitution business, U.S. Attorney Barry Grissom said.
Saundra J. Lacy, 60, Wichita, Kan., pleaded guilty to one count of engaging in interstate commerce in furtherance of prostitution. In her plea, she admitted Jessie’s Primetime Entertainment was a prostitution business that employed at least 20 women escorts. Customers would pay $160 for a half-hour date or $185 for an hour date with an escort. During dates, escorts engaged in sexual contact customers.
Lacy accepted cash, credit card and checks for escort services. The credit card transactions were processed by Merrick Bank in Utah. Payment was deposited into her account at Bank of America in Wichita.
Grissom commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case.
Wheeling man sentenced for oxycodone, cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Lucas N. High, 37, of Wheeling, West Virginia, was sentenced in federal today for his role in a prescription painkiller distribution operation based in the Ohio Valley, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Drug Enforcement Administration and the Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, revealed that High utilized phone calls and text messages to facilitate the distribution of oxycodone and cocaine as part of a painkiller distribution network led by Brian Schultz, 38, of Triadelphia, West Virginia.
High pled guilty in August 2014 to one count of “Conspiracy to Use a Telephone System to Facilitate the Distribution of Controlled Substances.” He was sentenced today to three years of probation.
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Westbrook Man Pleads Guilty to Child Pornography and Extortionate Threats ChargesRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Michael Van Eekhout, 51, of Westbrook, Maine, pled guilty today in U.S. District Court to
transporting child pornography and transmitting an extortionate threat.According to court records, in late 2011, Van Eekhout, posing online under an assumed
name, persuaded a woman to send him nude photographs of herself. He then told her that he
would widely disseminate the photos unless she took explicit photos of herself and sent them to
him. When she did so, he posted the photos online. In April 2012, he threatened to continue
doing so unless she sent him more explicit photos.In June 2014, Van Eekhout, posing as the woman, sent an undercover federal agent a
digital photograph of a naked pre-pubescent female. The next month, he was interviewed during
the execution of a search warrant at his Westbrook home and admitted that he had sent the
photograph and had pretended to be the woman.
The defendant faces a sentence of between five and 20 years in prison, a fine of up to
$250,000, and supervised release of up to life on the child pornography charge. He faces a
sentence of up to 2 years in prison, a fine of up to $250,000, and supervised release of up to 1
year on the threat charge. He will be sentenced after the completion of a presentence
investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations.Wayne County Man Sentenced for Importing Synthetic Drugs from China over the InternetRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Joshua Buerman, 27, of Williamson, NY, who was convicted of conspiracy to import and distribute more than 15 kilograms of methylone, a Schedule I controlled substance, was sentenced to 108 months in prison by U.S. District Judge David G. Larimer.Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that since June 2012, Joshua Buerman and other members of a drug trafficking organization utilized a source of supply located in China to purchase and obtain significant quantities of Methylone, as well as several other synthetic substances. The Government obtained a court order authorizing the interception of email communications occurring over an email address belonging to the source of supply in China. During the course of the 30 day email interception period, investigators obtained substantial evidence indicating that the China based supplier was shipping an assortment of controlled substances and controlled substance analogs to numerous customers located throughout the United States and abroad, including, but not limited to Austria, Canada, Finland, Spain, Germany, Italy, Belgium, Ireland, the United Kingdom, Sweden and Lithuania.
The interception generated more than 450 leads which were disseminated to various police agencies across the United States, resulting in the nationwide seizure of more than 70 kilograms of Methylone and numerous controlled substance analogs, all of which had been shipped from China. Investigative leads also resulted in at least 54 arrests nationwide, including Maine, Massachusetts, Connecticut, New Jersey, Maryland, Virginia, North Carolina, South Carolina, Georgia, Florida, Louisiana, Tennessee, Missouri, Ohio, Michigan, Minnesota, Nevada, Oregon, California and Texas. Agents also seized several kilograms of cocaine, methamphetamine and MDMA, more than $50,000 in cash, several motor vehicles and seven weapons, including several firearms.
In August 2013, investigators learned through the email interception that several shipments of Methylone were being shipped to members of the Rochester organization. The packages were interdicted and found to contain a total of 3.5 kilograms of methylone crystals.
Methylone is a stimulant that has a chemical structure closely related to 3,4 methyelenedioxymethamphetamine, known commonly as "MDMA" or "ecstacy." Its crystalline form is often sold generically on the streets by the street term "Molly" or “bath salts.” Methylone was the subject of an October 2011 DEA Emergency Scheduling Order and was permanently placed into Schedule I of the Controlled Substances Act in April 2013.
Buerman was arrested along with seven others in the Rochester area in September 2013. To date, six defendants have been convicted and sentenced. Charges are pending against the remaining defendants. 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.
The sentencing is the culmination of an investigation on the part of the Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, the United States Border Patrol, under the direction of Patrol Agent in Charge Chris Buskey, and the New York State Police, under the direction of Major Craig Hanesworth.
Washington Man Sentenced to over 4 Years in Prison for A Telemarketing Scam Targeting Elderly CitizensRead the Press Release
SACRAMENTO, Calif. —Joseph Nkunzi, 31, of Des Moines, Washington, was sentenced today by United States District Judge Kimberly J. Mueller to four years and three months in prison for his involvement in a telemarketing scheme that defrauded senior citizens of hundreds of thousands of dollars, United States Attorney Benjamin B. Wagner announced.
According to court documents, beginning in 2011, Nkunzi and others operated a scheme that involved calling senior citizens and telling them they had won a prize. They were told that in order to receive the prize, they first needed to pay taxes and fees. The victims would either mail checks to Nkunzi or would directly deposit checks into bank accounts that he established and controlled. The scam targeted victims throughout California, including residents of Woodland, Stockton, Bakersfield, and Dinuba. When federal agents searched Nkunzi’s home in Washington, they seized a Maserati and a Lexus. In total, the victims lost approximately $850,000 to the scam.
The case first came to the attention of the FBI in April 2013, when it received a referral from the Woodland Police Department regarding a 78-year-old victim of the scam. She had been called by “North American Prize Pool” and told that she had won $8.8 million, but first she had to send $182,000 to various accounts to pay for taxes and fees.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation with assistance from the Woodland Police Department. Assistant United States Attorney Michele Beckwith prosecuted the case.
Vermont Man Sentenced to over Two Years for Wire FraudRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Craig
Sanborn, age 64, of Maidstone, Vermont, was sentenced today in U.S. District Court by Judge
John A. Woodcock, Jr. to 28 months in prison for wire fraud. He was also ordered to pay
$300,000 in restitution, a $7,500 fine and to serve three years of supervised release. The sentence
is to be served consecutively to two 10-year sentences Sanborn is currently serving in New
Hampshire state prison for manslaughter associated with a fatal explosion at a Colebrook
ammunition-making facility in May 2010. Sanborn was convicted after a week-long jury trial on
April 25, 2014.Court documents and trial testimony reveal that in 2005, Sanborn received a $300,000
federally-funded Community Development Block Grant to renovate the former rail terminal in
Brownville, Maine, into a facility to manufacture ammunition for black powder rifles. The grant
entitled him to reimbursement for machinery purchases and certain other expenses, provided he
had invested $300,000 of his own funds towards the project. The evidence showed that he
submitted false invoices to the Town of Brownville and received grant reimbursement to which
he was not entitled.The investigation was conducted by the U.S. Housing and Urban Development Office of
Inspector General, the Occupational Safety and Health Administration, and the Brownville
Police Department.