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Friday 16 January 2015
Pennsylvania Federal Court Bars Woman from Preparing Tax Returns for OthersRead the Press Release
A federal court in Philadelphia has permanently barred a woman and her business from preparing tax returns for others and from operating a tax return preparation business, the Justice Department announced today.
The injunction order, which was signed by U.S. District Judge Lawrence F. Stengel, also requires Denise Almanza to close her existing tax preparation business, Denise’s Centro De Servicios P.C.
The United States brought the civil injunction suit in September 2014, alleging that Almanza inappropriately reduced her customers’ income or wrongfully claimed tax credits on their returns, which caused the customers to receive tax refunds or increased refund amounts to which they were not entitled.
Specifically, the suit alleged that Almanza improperly claimed the additional child tax credit on customers’ income tax returns, which allowed her customers to receive, on average, over $2,900 in improper benefits per tax return. Almanza and her business have prepared more than 14,000 federal tax returns since 2010, according to the complaint. In total, the complaint alleged that Almanza’s activities over the last four years have potentially cost the U.S. Treasury millions of dollars in lost tax revenue.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page.
Peabody Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A Peabody man was indicted yesterday on child pornography charges.
Patrick Lynch, 22, of Peabody, was indicted on receipt and possession of child pornography. The indictment alleges that beginning in May 2013, Lynch began receiving emails containing child pornography. A federal investigation revealed that Lynch was affiliated with the Boy Scouts, including a position at the Philmont Training Center for Boy Scouts of America. Lynch had also been employed at the Greater Beverly YMCA, and had recently begun employment with Beanstalk Adventure Ropes Course in Reading, Mass.
The charge of receipt of child pornography provides for a mandatory minimum term of five years and no greater than 20 years in prison. The charge of possession of child pornography provides for no greater than 20 years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a 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 Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston made the announcement today. Assistance was also provided by the Massachusetts State Police and the Peabody Police Department. The case is prosecuted by Assistant U.S. Attorney Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Partner in Scotts Valley Investment Company Sentenced to over 10 Years in Prison for His Role in Fraud SchemeRead the Press Release
SAN JOSE – Christopher Luck was sentenced yesterday to 130 months in prison, and ordered to pay $33,222,148.82 in restitution for his role in a securities fraud, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Luck pleaded guilty on July 21, 2014, to one count of conspiracy to commit mail and wire fraud, one count of mail fraud, and one count of securities fraud. According to the plea agreement, Luck admitted that he made false and misleading statements to investors in order to cause them to invest in the GLR Growth Fund, an investment fund managed by his investment company, Geringer, Luck, and Rode LLC. Luck admitted that at the end of April 2009, his partner, John Geringer confessed to Luck that Geringer had been falsifying the Growth Fund’s trading records for several years. Instead of terminating the Growth Fund, or reporting Geringer to the authorities, Luck admitted that he began to recruit investors by making false and misleading statements to them, including that the Fund had a positive historical performance, and that the Fund made diversified equity trades.
Through his guilty plea, Luck acknowledged that these false and misleading statements to investors were necessary in order to cause new investors to invest and existing investors to maintain their investments or invest more money. Luck admitted that if he was truthful with potential investors after Geringer’s confession, new investors would most certainly choose not to invest, and that new investor money was critical to keeping the Growth Fund afloat. Luck also admitted that this new investor money was used to pay Luck’s salary and bonus payments. In total, from May 2009 through the end of the Growth Fund in 2012, Luck defrauded investors out of over $33 million.
Luck, 58, of Scotts Valley, California, was indicted by a federal grand jury on December 20, 2012. He was charged with conspiracy, mail, wire, securities fraud, and money laundering, all related to his fraudulent conduct at Geringer, Luck, and Rode, LLC.
The sentenced was handed down by the Honorable Judge Edward J. Davila, U.S. District Court Judge, following a guilty plea to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349; one count of mail fraud, in violation of Title 18, United States Code, Section 1341; and one count of securities fraud, in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-2. Judge Davila also sentenced the defendant to a three year period of supervised release, ordered the defendant to pay restitution in the amount of $33,222,148.82, and forfeit $33,222,148.82 to the United States government. The defendant will begin servicing the sentence on April 9, 2015.
Jeff Schenk is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Nina Williams and Laurie Worthen. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Oakland Bus Driver Pleads Guilty in Tax Fraud SchemeRead the Press Release
OAKLAND – Akysha Rockwell pleaded guilty in federal court today for her role in a false tax refund scheme, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
In pleading guilty, Rockwell admitted that, during late 2011 and early 2012, Rockwell’s boyfriend at the time taught her how to prepare and electronically file fraudulent income tax returns, targeting people at their church and drug-rehabilitation clinics with the promise of an “Obama Stimulus,” a non-existent government program fabricated to attract clients.
As part of their scheme, Rockwell and her former boyfriend prepared tax returns that claimed false income and false occupations, regardless of the information that was provided to them by their clients. Rockwell’s former boyfriend acquired an identification information form (ID-Doc), to obtain the means of identification of actual persons to prepare and electronically file false federal individual income tax returns, claiming fraudulent tax credits and fraudulent tax refunds. Together, Rockwell and her former boyfriend prepared 116 tax returns in 2012, 54 claimed exactly $6,500 in income, a number they chose to maximize the refund amounts. All the tax returns claimed one of the following sources of “Household Employee” income: babysitter, caretaker, cleaning person, domestic worker, housekeeper, maid, and yard-worker. The clients thought they were applying for payments from an Obama stimulus program, they did not know that Rockwell and her former boyfriend were filing false tax returns in their names.
Even though a majority of the clients were unemployed or disabled with no income, Rockwell filed income tax returns reporting false earned income and false refundable educational credits. Rockwell received a portion of the false tax refunds and spent it on personal items such as clothing, hotels, rental cards and illegal drugs.
After ending their relationship, Rockwell continued to file false tax returns from her residence in Oakland. She used the same fake “Obama Stimulus” program to attract victims. She obtained at least $58,131 by filing false and fraudulent tax refund claims.
Rockwell, 39, a bus driver for a private transportation company in Oakland, was indicted by a federal grand jury on Mar. 13, 2014 and charged with conspiracy to file false claims and two counts of false claims. She pleaded guilty to conspiracy to file a false claim and to filing false claims.
The maximum penalty for each count of conspiracy to file false claims, in violation of a Title 18, U.S.C § 286, is 10 years in prison and a fine of $250,000, or twice the intended gain or loss, whichever is greater. The maximum penalty for each count of false claims, in violation of a Title 18, U.S.C § 287, is five years in prison and a fine of $250,000, or twice the intended gain or loss, whichever is greater. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Rockwell’s sentencing hearing is scheduled for May 1, 2015, at 9:30 a.m. before The Honorable Jon Tigar, U.S. District Court Judge, in Oakland.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
No. Smithfield Resident Sentenced to 5 Years in Federal Prison for Possessing, Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – Derek D. Felicio, 42, of North Smithfield, R.I., was sentenced today to 60 months in federal prison for possessing more than 90,000 images and 555 videos depicting child pornography and for distributing child pornography, announced United States Attorney Peter F. Neronha; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI) in New England; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Felicio to serve 10 years of supervised release upon completion of his prison term. Felicio pleaded guilty on October 24, 2014, to one count each of possession of child pornography and distribution of child pornography.
According to court records and information presented to the court, in March 2013, Felicio unknowingly contacted an undercover HSI agent in Salt Lake City, UT, on a website which contains and is used to share images of child pornography. At the time of his guilty plea, Felicio admitted to the court that during an exchange of emails, he sent HSI agents numerous photographs depicting the lascivious display of prepubescent girls.
In October 2013, HSI agents in Rhode Island seized and searched two computers at Felicio’s residence. A forensic examination of the computers by the Rhode Island State Police Internet Crimes Against Children task force resulted in the identification of more than 90,000 images and 555 videos depicting child pornography.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker
Felicio has been detained in federal custody since his arrest by HSI agents on May 1, 2014.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]New Jersey Man Sentenced to Two Years for ExtortionRead 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 Patrick
Curley, 51, of Passaic, New Jersey, was sentenced today in U.S. District Court to two years in
prison and one year of supervised release for extortion. He pled guilty on April 7, 2013.According to court documents, in March 2010, Curley applied on-line for a job with
Vescom, a Hampden, Maine-based security firm. On April 21, 2010, Curley met Vescom’s
Senior Vice President for a job interview in New York. In e-mails and a voice message left after
the interview, he expressed ongoing interest in the job. On April 27, however, he e-mailed
Vescom’s Senior Vice President and falsely accused her of sexual harassment and discrimination
and threatened to sue. In the months that followed, both he and an attorney representing him
contacted Vescom employees and staff counsel seeking $130,000 to settle the claims and
threatening to sue and take his claims to the media if they could not reach a financial
settlement. Curley’s claims of sexual harassment and discrimination were false and were
intended to extort money from Vescom.
The case was investigated by the Federal Bureau of Investigation.Nevada Man Sentenced for Possession of Sexual Material Involving a MinorRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on Jan. 16 2015, Johnathan Edward Holiday, 40, Reno, Nevada, was sentenced before U. S. District Judge Daniel L Hovland to serve five years in prison for possession of materials involving the sexual exploitation of minors.
This case came to the attention of law enforcement after an agent with the North Dakota Bureau of Investigations, assigned to the Internet Crimes Against Children Task Force, discovered a computer geographically located in North Dakota that was sharing child pornography in a peer-to-peer (P2P) network. Homeland Security Investigators eventually traced the computer to Holiday where they seized a laptop, two hard drives, and a Kindel Tablet. On about Jan. 20, 2014, Holiday knowingly possessed in excess of 600 images depicting prepubescent minor’s on various media devices including his laptop computer.
Judge Hovland also ordered that Holiday serve five years of supervised release and pay a $100 special assessment to the Crime Victims Fund.
The case was investigated by Homeland Security Investigations and the North Dakota Bureau of Criminal Investigations.
Assistant U. S. Attorney Gary Delorme prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood in conjunction with Internet Crimes Against Children Task Force (ICAC) help Federal, State and Local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations and criminal prosecutions. Project safe childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Multi-Convicted Felon Receives Almost 20 Years in Prison for Possessing A FirearmRead the Press Release
Augusta, GA: Jacky Ray Burley, 51, of Warrenton, Georgia, was sentenced yesterday before United States District Court Judge J. Randal Hall to 235 months in prison for possessing a firearm as a multi-convicted felon. There is no parole in the federal system.
Evidence presented during Burley’s guilty plea and sentencing hearings revealed that on November 25, 2013, Burley used a shotgun to robthe Dollar General store located at 644 Main Street in Thomson, Georgia. Burley fled the store and was later arrested after a high-speed car chase ended at a roadblock in Warren County, Georgia. Before the Dollar General robbery, Burley’s criminal history included three prior burglary convictions. As a result of his lengthy criminal history, Burley qualified as an Armed Career Criminal, which subjected him to a minimum 15-year prison sentence. Judge Hall’s sentence exceeded the mandatory minimum by almost 5 years.
Burley’s case was prosecuted as part of Project Ceasefire, a joint firearms initiative of the U. S. Attorney’s Office, the ATF, and local law enforcement agencies. Project Ceasefire is a cooperative effort between federal and local law enforcement agencies to combat gun crime by targeting felons previously convicted of drug offenses or crimes of violence and who are found to be in possession of firearms, as well as those who commit violent gun offenses.
United States Attorney Tarver said. “Law enforcement’s top priority is the safety of our citizens. We will bring the full force of justice on dangerous criminals who possess firearms. Those dangerous felons who possess firearms will be investigated, prosecuted, and can expect to serve lengthy prison sentences in federal prison.”
“This sentence is another reminder that ATF remains on the frontline of preventing violent crimes along with our law enforcement partners,” said ATF Special Agent in Charge Carl Walker. “We will not allow residents to suffer such criminal behavior, especially that which threatens the safety of innocent civilians and law enforcement officers.”
Burley’s case was investigated by the ATF. Assistant United States Attorney Lamont A. Belk prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Mortgage Broker Sentenced in Two Separate Fraud Schemes Resulting in Losses of over $2 MillionRead the Press Release
Falsified Home Buyers’ Information to Generate Fraudulent Loan Applicationsin Order to Collect Commissions, Origination and Broker’s Fees
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Emeka Udeze, age 39, of Bowie, Maryland, today to 37 months in prison followed by five years of supervised release for conspiring to commit wire fraud in connection with two separate mortgage fraud schemes. Judge Messitte also entered an order that Udeze pay restitution and forfeit $2,098,378, the amount of actual losses suffered by the mortgage lenders as the result of the minimum of 20 transactions Udeke brokered in furtherance of the fraud schemes.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; Special Agent in Charge Fran Mace of the Federal Deposit Insurance Corporation, Office of Inspector General; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development, Office of Inspector General; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Michael Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief Gary Gardner; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Howard County State’s Attorney Dario Broccolino.
According to his plea and court documents, Udeze was a licensed mortgage broker who worked at various companies, including Newgate Mortgage, owned by co-defendant Shola Risikat Balogun, and EWA Mortgage. Udeze also registered a Maryland company called E&T Consulting, Inc., which he claimed was established to provide general services.
Udeze admitted that in both schemes, he submitted fraudulent mortgage loan applications for buyers, inflating the buyer’s income and creating bogus employment information in an effort to qualify these individuals for loans that they otherwise were unqualified to secure. In some cases, no mortgage payments were made and the property went swiftly into default. In other cases, the borrowers attempted to make mortgage payments for a period of time until they could no longer make payments.
In the first scheme, from at least 2006 through at least December 2008, Udeze, Balogun, Daniel Ofei and others contacted individuals who wished to purchase homes. The buyers, who typically had moderate to low incomes, provided the conspirators with accurate income and employment information. Udeze and others then submitted fraudulent loan applications on behalf of the buyers, inflated the buyer=s income and created bogus employment information in an effort to secure the loan. Udeze, Balogun and others collected origination fees, commissions, yield spread premiums and broker=s fees from each loan that closed. In all, Newgate Mortgage was responsible for originating nearly 100 fraudulent transactions, causing millions of dollars of losses to lending institutions.In a separate scheme, from May 2009 to January 2010, Udeze conspired with Bonnie Kreamer, Nieshia Williams and Rhonda Scott to arrange for individuals to buy and sell real estate so they could improperly obtain money from the transactions. The co-conspirators used many fraudulent techniques, including: short sales in which the property would be sold for a higher price than the seller was aware of; sales of properties not owned by the seller; multiple sales of the same property at the same time; the seller and/or buyer were shown different settlement statements and the conspirators used the difference in sales price to enrich themselves; and money that should have been paid to lien holders was instead disbursed to the co-conspirators, including shell companies created by Udeze and others in order to disguise that the money was really for their benefit. This fraud scheme involved at least 25 victims, including lenders, sellers and buyers of real estate, title insurance companies and lien holders, who incurred losses of over $3 million.
Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 49, of Riva, Maryland; Shola Risikat Balogun, age 48, of Upper Marlboro; Rhonda Scott, age 53, of Oxon Hill, Maryland; Daniel Ofei, age 40, of Bowie, Maryland; Nieshia Williams, age 35, of Fort Washington, Maryland; Gregory Green, age 50, of Waldorf, Maryland; and Demetrius Peete, age 47, of Manassas, Virginia, each previously pleaded guilty to their roles in the fraud schemes. Kreamer, who was responsible for the daily operations at Sanford Title, was sentenced on to 51 months in prison, and ordered to pay restitution of $2,499,048 to the victims and forfeit $4.8 million. Scott was sentenced to 30 months in prison and ordered to forfeit $2.7 million and pay restitution of $703,000. Balogun, who organized the mortgage fraud scheme involving Newgate Mortgage, was sentenced to 37 months in prison and ordered to pay restitution and forfeit $1,352,378. Ofei, was sentenced to 37 months in prison and ordered to pay restitution of $5,950,000. Williams was sentenced to 27 months in prison and ordered to forfeit $3.1 million and pay restitution of $1,445,593. Peete was sentenced to a year and a day in prison and ordered to pay restitution of $394,908 and forfeit $1.5 million. Green was sentenced to three months in prison and ordered to pay restitution of $404,596.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, FDIC and HUD-OIG for their work in the investigation of the first scheme; and the FBI, DOJ OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation of the second scheme. Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the first case, and Assistant United States Attorney Harry Gruber and Special Assistant United States Attorney Colleen McGuinn assigned to this case from the Howard County States Attorney’s Office, who prosecuted the second case.
Milford Man Sentenced for Robbing Bank in Merrimack, New HampshireRead the Press Release
CONCORD, NEW HAMPSHIRE – CONCORD, N.H. – Frank Mione, 49, of Milford, was sentenced in United States District Court for the District of New Hampshire to 151 months in prison for committing an armed bank robbery and brandishing a firearm during a crime of violence, announced United States Attorney John P. Kacavas.
Mione pleaded guilty on September 29, 2014. Mione admitted that on August 21, 2013, he robbed the TD Bank at 300 Daniel Webster Highway in Merrimack, New Hampshire and that he used a shotgun to commit the robbery and pointed the gun at several tellers in the bank. Mione obtained approximately $2,261 during the robbery.
This investigation involved the cooperative efforts of federal and local law enforcement entities, including the Federal Bureau of Investigation, the Merrimack Police Department, and the Milford Police Department. The case was prosecuted by Assistant U.S. Attorney John J. Farley.
Miami-Dade County Resident Sentenced to 81 Months in Prison in Identity Theft Scheme Involving Theft of over 3,000 Stolen IdentitiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that Providencia Llanos, a/k/a Providensia Llanos, a/k/a Providencia Allison, 36, of Miami Gardens, was sentenced to 81 months in prison, followed by three years of supervised release, and was ordered to pay $42,828 in restitution.
Llanos previously pled guilty to one count of access device fraud, in violation of Title 18 United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18 United States Code, Section 1028A(a)(1).
According to court documents, on March 18, 2014, IRS-CI and USSS special agents conducted a search warrant at Llanos’ residence where they found numerous prepaid debit cards, multiple computers, and printed lists and notebooks containing the names, date of births, and social security numbers of at least 3,192 individuals. Eighty-six tax returns were filed from the IP address registered to the residence where Llanos lived using the names and social security numbers of individuals listed on the printed lists and notebooks. Numerous taxpayers stated that they did not know Llanos, that they did not authorize Llanos to possess their names, date of births, and social security numbers, and that they did not authorize Llanos to file federal tax returns for the 2013 tax year.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Pleads Guilty to Trafficking Methamphetamine in Eddy CountyRead the Press Release
ALBUQUERQUE – Israel Mireles-Rivera, 33, a Mexican national unlawfully in the United States and residing in Hagerman, N.M., pled guilty this afternoon in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Mireles-Rivera and co-defendant Ediberto Guzman, 61, of Carlsbad, N.M., were arrested in Jan. 2014, on a three-count indictment alleging methamphetamine trafficking and firearms charges. Count 1 of the indictment charged the two men with conspiracy to distribute methamphetamine from Feb. 2013 through Oct. 2013 in Eddy and Chaves Counties, N.M. Counts 2 and 3 respectively charged Mireles-Rivera alone with possession of methamphetamine with intent to distribute and being an alien illegally in possession of a firearm.
According to the indictment, between Feb. 2013 and Oct. 2013, Mireles-Rivera provided methamphetamine to Guzman on multiple occasions, and Guzman sold the methamphetamine to others, including a person who was working as a confidential source for law enforcement officers. It also alleged that on Oct. 17, 2013, Mireles-Rivera had more than 180 grams of methamphetamine hidden in a vehicle outside his residence and a smaller amount of methamphetamine inside his residence.
Guzman pled guilty to Count 1 of the indictment on April 25, 2014, and was sentenced on June 26, 2014, to 48 months in federal prison followed by three years of supervised release.
During this afternoon’s proceedings, Mireles-Rivera pled guilty to a two-count felony information charging him with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute. In entering his guilty plea, Mireles-Rivera admitted that between Feb. 2013 and Oct. 2013, he was involved in a methamphetamine distribution conspiracy. He acknowledged that during this period, he supplied methamphetamine to an individual who sold the drugs to others, including a person who was acting as a confidential source for law enforcement. Mireles-Rivera also admitted that subsequent to his arrest, law enforcement officers seized approximately eight ounces of methamphetamine when they searched his house and vehicle.
At sentencing, Mireles-Rivera faces a mandatory minimum of five years and a maximum of 40 years in federal prison. He will be deported to Mexico after completing his prison sentence. Mireles-Rivera remains in federal custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA, the HITDA Region VI Pecos Valley Drug Task Force and the Carlsbad Police Department. This case is being prosecuted by Assistant U.S. Attorneys Renee L. Camacho and Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
The HITDA Region VI Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department, Artesia Police Department, New Mexico Probation and Parole, and the 5th Judicial District Attorney’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Mexican National Indicted for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EFREN FLORES-MELOCHOR, age 40, a citizen of Mexico, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.
According to the Indictment, FLORES-MELCHOR was encountered by Immigration & Customs Enforcement agents in the Eastern District of Louisiana on December 10, 2014, after records showed he had been previously deported from the United States to Honduras on April 18, 2013.
If convicted, FLORES-MELCHOR faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration & Customs Enforcement and the St. Charles Parish Sheriff’s Department in investigating this matter. Assistant U.S. Attorney Rick Veters is in charge of the prosecution.
Medford Felon Sentenced to 77 Months in Prison for Possessing FirearmRead the Press Release
MEDFORD, OR— On Tuesday, January 13, 2015, Senior U.S. District Judge Owen M. Panner sentenced Vincent Leon Johnson, 26, recently of Medford, Oregon, to 77 months in prison after he pled guilty to being a felon in possession of a firearm. Defendant will be on three years of post-prison supervision upon completing his sentence.
On February 16, 2014, Medford police were dispatched to a report of drug dealing in the Taco Bell parking lot. Police arrived and found the suspect automobile occupied by four people; three of them had arrest warrants. Johnson was the front passenger. Officers frisked Johnson and found $3,401 cash, digital scales, and a small amount of marijuana. Officers seized a backpack found at Johnson’s feet and found a loaded Glock .40-caliber pistol, 50 grams of heroin, $260 cash, and photographs of Johnson. Johnson admitted that he intended to deliver the heroin to another person and carried the loaded Glock .40 caliber handgun. He has prior felony convictions for assault with firearm on a person and two separate convictions for felon in possession of a firearm.
Johnson was recently convicted in the Jackson County Circuit Court of racketeering and two counts of conspiracy to distribute heroin for arranging drug deals while incarcerated in the Jackson County Jail. He was sentenced to 87 months in state prison. As part of his plea agreement, his federal sentence will run concurrent with his state prison sentence.
This case was investigated jointly by the Medford Police Department and the Bureau of Alcohol, Tobacco, and Firearms (ATF), and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Maryland Man Found Guilty of Felony Charges in Shooting Outside Northwest Washington Night ClubDefendant Fired Nine Shots at Victim, Who Tried to Run AwayRead the Press Release
WASHINGTON – Jonathan Blades, 30, of Suitland, Md., was found guilty by a jury today of assault with intent to kill while armed and other offenses stemming from a shooting outside a night club in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict was returned following a trial in the Superior Court of the District of Columbia. In addition to the charge of assault with intent to kill while armed, Blades was found guilty of aggravated assault while armed and three related firearms offenses. The Honorable Michael Ryan scheduled sentencing for March 20, 2015.
According to the government’s evidence, on Sunday, Feb. 2, 2014, at about 3 a.m., Blades and the victim engaged in a physical altercation after leaving a night club at 20th and K Streets NW. After the fight had stopped, Blades went to his car and retrieved a 40-caliber semi-automatic handgun. Then, as the victim ran from Blades, Blades shot nine times. The gunfire hit the victim, sending a bullet through his back and shoulder. The victim fled to a gas station several blocks away, at 22d and M Streets NW, where a citizen offered him first aid. He was hospitalized for his injuries.
Blades was arrested on Feb. 5, 2014.
In announcing the verdict, U.S. Attorney Machen expressed his appreciation to the Metropolitan Police Department, the U.S. Marshals Service, and the Prince George’s County, Md. for their work on the case. He also acknowledged the work of Paralegal Specialist Allison Gregory Daniels, Victim/Witness Advocate Diana Lim, and Litigation TechnologySpecialist Leif Hickling, all of the U.S. Attorney’s Office. Finally, he commended the efforts of Assistant U.S. Attorneys Scott Sroka and Christopher Macchiaroli, who tried the case.
15-012Madison Gallery Owner Sentenced to 57 Months in Prison for Selling Fraudulent ArtworkRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID J. CRESPO, 60, of Guilford, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by three years of supervised release, for selling fraudulent artwork.
According to court documents and statements made in court, CRESPO was an art dealer who operated the Brandon Gallery in Madison. Over the course of several years, CRESPO defrauded customers by falsely representing that artwork he sold were original pieces by Pablo Picasso and original signed lithographs by Marc Chagall. As part of the scheme, CRESPO forged numerous documents in order to provide “authentication” or provenances of the fakes to his victims.
On September 3, 2013, CRESPO pleaded guilty to one count of mail fraud stemming from the sale of an imitation Marc Chagall lithograph.
The investigation revealed that CRESPO obtained reproductions of original Chagall lithographs, but represented to potential customers that they were, in fact, original lithographs that had been produced through an artistic lithographic method, and under the direction and authority of Marc Chagall.
In January 2010, CRESPO met with an undercover FBI agent at Brandon Gallery. During the course of the conversation, which was recorded, CRESPO and the agent discussed a lithograph known as “The Presentation of Chloe,” which CRESPO represented, among other things, was an “original lithograph” that was part of a limited edition collection made from “stone plates” from which multiple impressions were made from “the same plate.” The agent agreed to purchase the purported lithograph for $2,000.
In May 2010, CRESPO shipped the purported lithograph along with a “Certificate of Authenticity,” which valued the piece at $12,750 “for insurance purposes,” stated that piece was “hand signed by Chagall in crayon after the artist personally examined this particular example,” and represented that “[t]his work came from the collection of Richard Riskin, a longtime friend of the artist.”
In fact, CRESPO had not obtained the purported Chagall lithograph from the estate of Richard Riskin, as no such person existed, and CRESPO knew that the piece was not a limited edition original lithograph manufactured under the artist’s direction using stone plates, but was a photo-mechanical production that was removed from a common edition book.
In November 2010, the FBI conducted a search of the Brandon Gallery and found packages of Chagall prints and practiced Chagall signatures.
The investigation revealed that CRESPO defrauded at least 10 victims out of a total of at least $400,000. Judge Burns will issue a restitution order with 90 days.
On April 3, 2012, CRESPO was arrested on a criminal complaint. He has been detained since December 31, 2014, when he was found to have violated the conditions of his release and his bond was revoked.
This matter was investigated by the Federal Bureau of Investigation and the Madison Police Department. The case was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Liam Brennan.
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[email protected]Luzerne County Woman Pleads Guilty to Conspiracy to Distribute "bath Salts"Read the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 30-year-old Pittston woman pleaded guilty today in Scranton before United States District Court Judge Malachy E. Mannion to participating in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney Peter Smith, the defendant, Tiffany Pradel, admitted to her involvement in the conspiracy during 2011 through 2013.
Pradel was indicted by a federal grand jury in August 2014, following an investigation by Department of Homeland Security agents, the Pennsylvania State Police, and West Pittston Police.
The maximum sentence for the offense is 20 years in prison and a $1million fine. Judge Mannion ordered a pre-sentence investigation. Sentencing will be scheduled after the completion of the pre-sentence report.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Local Mechanic Charged with Possessing Child PornographyRead the Press Release
LAREDO, Texas – Gamaliel Cortez-Mendoza, 43, an illegal alien residing in Laredo, has been arrested and charged with possession of child pornography, announced U.S. Attorney Kenneth Magidson along with Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala in San Antonio and Webb County Sheriff Martin Cuellar. Cortez-Mendoza is a Mechanic at a local logistics company.
Cortez-Mendoza was arrested yesterday following an investigation by the Laredo Child Exploitation Task Force led by HSI and the Webb County Sheriff's Office Cyber Crime Unit with assistance from the Laredo Police Department, Texas Department of Public Safety and U.S. Marshals Service.He made his initial appearance this morning, at which time he was temporarily ordered into custody pending a preliminary examination and detention hearing set for Jan. 23, 2015, at 10:00 a.m. before U.S. Magistrate Judge Diana Song Quiroga.
“This arrest illustrates the value of having a task force dedicated to protecting the children of this community,” said Ayala. “The concept for this task force was inspired by the many successes resulting from the strong partnership between HSI and Webb County, a partnership which was initiated at the direction of Sheriff Martin Cuellar.”
“Operation Child Guardian has proven to be a great success,” said Cuellar. “Since its inception in 2009, more than 40 suspected child predators have been taken off the streets. We will continue to aggressively target those individuals who prey on our children."
The criminal complaint alleges Cortez-Mendoza utilized the Internet to download images depicting a minor engaging in sexually explicit conduct. Such images were allegedly downloaded multiple times over the past several months to a laptop computer that was seized from his possession.
If convicted, Cortez-Mendoza faces up to 20 years in federal prison and a possible $250,000 fine. Upon conviction, he will also be required to register as a sex offender.
This case, prosecuted by Assistant U.S. Attorney Alfredo De La Rosa, 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."Largo Armed Drug Dealer Sentenced to 15 Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Antwon Scott (39, Largo) to 15 years in federal prison for being a convicted felon in possession of a firearm and ammunition. The Court also ordered Scott to forfeit the firearm and ammunition involved in the offense. He pleaded guilty on October 31, 2014.
According to court documents, on April 11, 2014, officers from the Largo Police Department conducted a traffic stop of Scott for driving with a suspended license. Inside the car, Scott had a distribution amount of marijuana. During a subsequent search of Scott’s residence, officers found a firearm, ammunition, and narcotics. Scott has an extensive criminal history, including convictions for fleeing and eluding law enforcement, sales of narcotics, and aggravated assault. As a previously convicted felon, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Largo Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Largo Armed Drug Dealer Sentenced to 15 Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Antwon Scott (39, Largo) to 15 years in federal prison for being a convicted felon in possession of a firearm and ammunition. The Court also ordered Scott to forfeit the firearm and ammunition involved in the offense. He pleaded guilty on October 31, 2014.
According to court documents, on April 11, 2014, officers from the Largo Police Department conducted a traffic stop of Scott for driving with a suspended license. Inside the car, Scott had a distribution amount of marijuana. During a subsequent search of Scott’s residence, officers found a firearm, ammunition, and narcotics. Scott has an extensive criminal history, including convictions for fleeing and eluding law enforcement, sales of narcotics, and aggravated assault. As a previously convicted felon, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Largo Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Lansing Man Sentenced in Federal Mortgage Fraud ProbeRead the Press Release
Richard Hollern Sentenced for Conspiracy to Commit Bank Fraud
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Richard Hollern, 39, of Grand Ledge, Michigan was sentenced for conspiracy to commit bank fraud. Hollern pled guilty before U.S. District Judge Robert Holmes Bell on August 18, 2014.
Hollern admitted that he conspired with others at CDC, a Lansing real estate and investment company, to process multiple fraudulent mortgage transactions involving real estate in the vicinity of Lansing, Michigan. The scheme enabled the perpetrators to use bank funds to enrich themselves as a result of the sham real estate transaction charged, as well as other similar transactions. Others associated with this organization, including Eric Williams, Aaron Teachout, Isaac Modert, Mario Giannandrea, Rick Artibee, Dennis Sare, Nicole Buda have already been sentenced for their roles in the conspiracy. Another conspirator, Craig DeHaven, has pled guilty and is awaiting sentencing.
Judge Bell imposed a prison sentence of 30 months, to be followed by 24 months of supervision following release from prison. Hollern was also ordered to pay restitution of $1,860,377 to the banks defrauded as a result of the scheme.
Hollern’s prosecution is the result of a continuing investigation by the Mortgage Fraud Task Force, comprised of federal investigators from the FBI, U.S. Secret Service, the U. S. Postal Inspection Service and the HUD Office of Inspector General. The task force also includes the Lansing Police Department, investigators employed by the Michigan Attorney General’s Office and other state agencies. To date, fifteen individuals have been convicted of mortgage fraud as part of this effort, resulting in prison sentences for all of the defendants, and restitution orders exceeding $14,000,000.
U.S. Attorney Miles praised the cooperation between federal, state and local investigators participating in the Mortgage Fraud Task Force. He also stated that the work of the group is not done: “Many of the people prosecuted worked with others who committed, and continue to commit, mortgage fraud. The defendants have told investigators who they are, and what they are doing. Those people who have not yet learned that crime does not pay will learn that lesson very soon.”
Lansing Man Sentenced in Federal Mortgage Fraud ProbeRead the Press Release
Richard Hollern Sentenced for Conspiracy to Commit Bank Fraud
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Richard Hollern, 39, of Grand Ledge, Michigan was sentenced for conspiracy to commit bank fraud. Hollern pled guilty before U.S. District Judge Robert Holmes Bell on August 18, 2014.
Hollern admitted that he conspired with others at CDC, a Lansing real estate and investment company, to process multiple fraudulent mortgage transactions involving real estate in the vicinity of Lansing, Michigan. The scheme enabled the perpetrators to use bank funds to enrich themselves as a result of the sham real estate transaction charged, as well as other similar transactions. Others associated with this organization, including Eric Williams, Aaron Teachout, Isaac Modert, Mario Giannandrea, Rick Artibee, Dennis Sare, Nicole Buda have already been sentenced for their roles in the conspiracy. Another conspirator, Craig DeHaven, has pled guilty and is awaiting sentencing.
Judge Bell imposed a prison sentence of 30 months, to be followed by 24 months of supervision following release from prison. Hollern was also ordered to pay restitution of $1,860,377 to the banks defrauded as a result of the scheme.
Hollern’s prosecution is the result of a continuing investigation by the Mortgage Fraud Task Force, comprised of federal investigators from the FBI, U.S. Secret Service, the U. S. Postal Inspection Service and the HUD Office of Inspector General. The task force also includes the Lansing Police Department, investigators employed by the Michigan Attorney General’s Office and other state agencies. To date, fifteen individuals have been convicted of mortgage fraud as part of this effort, resulting in prison sentences for all of the defendants, and restitution orders exceeding $14,000,000.
U.S. Attorney Miles praised the cooperation between federal, state and local investigators participating in the Mortgage Fraud Task Force. He also stated that the work of the group is not done: “Many of the people prosecuted worked with others who committed, and continue to commit, mortgage fraud. The defendants have told investigators who they are, and what they are doing. Those people who have not yet learned that crime does not pay will learn that lesson very soon.”
Lane County Man Pleads Guilty in Federal Court to Being a Fellow in Possession of a FirearmRead the Press Release
EUGENE, Ore. – On Tuesday, January 13, 2015, Christopher Shaun Kanatzar, 28, a resident of Springfield, Oregon, appeared before U. S. District Court Chief Judge Ann Aiken and pled guilty to felon in possession of a firearm. Kanatzar admitted possessing a loaded 9 mm caliber pistol and faces a ten-year maximum prison term and three years of post-prison supervision.
After accepting the guilty plea, Chief Judge Aiken scheduled Kanatzar’s sentencing hearing for March 17, 2015.
According to court documents and statements made in court, on October 1, 2012, Springfield police attempted to stop Kanatzar who was driving a stolen car. Kanatzar attempted to elude police and after a violent struggle, was taken into custody. Inside the stolen vehicle, police located a pistol which Kanatzar had used to rob a man.
In 2012, Kanatzar was charged in state court with robbery, assault and driving offenses. His guilty plea and admissions were part of a resolution of his federal and state charges.
Kanatzar was also convicted in 2006 for shooting at a man and a school administration building, first degree burglary and first degree theft.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms, and the Springfield Police Department. Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Lane County Deputy District Attorney Erik Hasselman, prosecuted the case.
Lakeland Shooter Sentenced to more than 5 Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge Charlene Edwards Honeywell has sentenced Nicholas Quinton Hanson (23, Lakeland) to five years and ten months in federal prison for being a convicted felon in possession of ammunition. He pleaded guilty on October 1, 2014.
According to court documents, on May 10, 2014, law enforcement officers responded to a shooting at a Chevron gas station in Lakeland. Surveillance video from the gas station captured the shooting, and the individuals involved. That night, numerous individuals, including Hanson, arrived at the gas station in multiple vehicles and congregated around the gas pumps. After conversing for a short time, and as the individuals returned to their vehicles, gunfire erupted from a nearby location. The shots were aimed at Hanson and the others. Hanson returned fire from the rear passenger window of his vehicle and fled the scene. Although the firearm Hanson had used was not located, five of his shell casings were recovered from the scene. Hanson has a lengthy criminal history, including convictions for burglary, grand theft, and retaliation against a witness. As a previously convicted felon, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Lakeland Shooter Sentenced to more than 5 Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge Charlene Edwards Honeywell has sentenced Nicholas Quinton Hanson (23, Lakeland) to five years and ten months in federal prison for being a convicted felon in possession of ammunition. He pleaded guilty on October 1, 2014.
According to court documents, on May 10, 2014, law enforcement officers responded to a shooting at a Chevron gas station in Lakeland. Surveillance video from the gas station captured the shooting, and the individuals involved. That night, numerous individuals, including Hanson, arrived at the gas station in multiple vehicles and congregated around the gas pumps. After conversing for a short time, and as the individuals returned to their vehicles, gunfire erupted from a nearby location. The shots were aimed at Hanson and the others. Hanson returned fire from the rear passenger window of his vehicle and fled the scene. Although the firearm Hanson had used was not located, five of his shell casings were recovered from the scene. Hanson has a lengthy criminal history, including convictions for burglary, grand theft, and retaliation against a witness. As a previously convicted felon, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Laguna Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
Defendant Prosecuted as Part of Federal Initiative to Address
the Epidemic Incidence of Violence Against Native WomenALBUQUERQUE – Dominque Begay, 50, a member of Laguna Pueblo who resides in Old Laguna, N.M., pleaded guilty this morning to an indictment charging him with assault resulting in serious bodily injury. The guilty plea was entered under a plea agreement with the U.S. Attorney’s Office.
Begay was arrested on Aug. 26, 2014, on a criminal complaint charging him with assault resulting in serious bodily injury. According to the complaint, on Aug. 20, 2014, officers of the Laguna Pueblo Tribal Police Department responded to a report of assault in Old Laguna in Cibola County, N.M. The complaint alleged that Begay assaulted the victim, a Laguna Pueblo woman, by punching, kicking and choking her. The officers noted that the victim had bruising and redness on her neck, arms and back. Begay was arrested by the tribal officers that day on local charges and held in tribal custody until his arrest on federal charges.
Begay was indicted on Sept. 9, 2014, and charged with assault resulting in serious bodily injury.
During today’s proceedings, Begay entered a guilty plea to the indictment and admitted assaulting the victim by knocking her to the ground and causing her to hit her head against a wall. Begay also admitted causing the victim extreme physical pain by putting his hands on the victim’s throat and squeezing.
At sentencing Begay faces a statutory maximum penalty of ten years in federal prison. Begay has been in federal custody since his arrest and remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Laguna Pueblo Tribal Police Department. Assistant U.S. Attorney Paul H. Spiers is prosecuting this case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Kyle Man Charged with Possession of Firearms by A Prohibited PersonRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Possession of Firearms by a Prohibited Person.
Gerald Baker, age 29, was indicted on September 23, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 8, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Baker being in possession of a firearm on June 9, 2014, at Kyle, when he knew he was prohibited from doing so because of a previous domestic violence conviction.
The charge is merely an accusation and Baker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, Oglala Sioux Tribe Department of Public Safety, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Baker was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for March 17, 2015.
Knoxville Hotel Owner Sentenced to Serve 42 Months in Prison for Bank FraudRead the Press Release
GREENEVILLE, Tenn. - Jayesh Dahyabhai Patel, 49, of Knoxville, Tenn., was sentenced on Jan. 15, 2015, by the Honorable Leon Jordan, U.S. District Court Judge, to serve 42 months in federal prison. Patel was also ordered to pay restitution of $2,806,438.20 to First Community Bank and serve five years of supervised release upon his release from prison.
Patel was indicted in May 2014 and pleaded guilty in July 2014 to bank fraud. He admitted engaging in a scheme from approximately January 2009 to August 2011 to defraud First Community Bank of East Tennessee, Kingsport, Tenn., in connection with an application for a loan to his business, QIS Knoxville, LLC, by providing false tax returns to induce First Community Bank to issue the loan for the purchase and renovation of a Knoxville hotel. Patel further schemed to defraud First Community Bank by providing false invoices to induce the bank to disburse loan funds and by providing additional false tax returns in order to increase the amount of the loan and to obtain a six-month interest only payment period. Finally, he fraudulently induced First Community Bank to make a second loan to finance the sale of a motel by Patel to a relative by providing false information as to the down payment on the purchase. As a result of the fraud, First Community Bank suffered losses of $2,806,438.20.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Neil Smith represented the United States.
Justice Department Requests Applicants for Federal Monitor of Newark Police DepartmentRead the Press Release
NEWARK, N.J. – The U.S. Department of Justice is now accepting applications from individuals and organizations interested in serving as the federal monitor of the Newark Police Department (NPD), U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General for Civil Rights Vanita Gupta announced today. The Justice Department reached an agreement in principle with Newark to undertake wide-ranging reforms within the police department, including an independent court-appointed monitor, and to incorporate those reforms into a judicially enforceable consent decree.
A three-year investigation by the Justice Department and the New Jersey U.S. Attorney’s Office revealed a pattern or practice of constitutional violations in areas including stop and arrest practices, use of force, and theft by officers. The agreement and a summary of the Justice Department’s findings were announced in July 2014.Selecting a monitoring team to oversee and implement the consent decree is an integral part of the reform process. The Justice Department invites all interested parties to submit applications to serve as the monitoring team of the NPD consent decree. The monitoring team will assess and guide reforms in a number of areas, including: community engagement and civilian oversight; stops, searches, and arrests; use of force; bias-free policing; theft by officers; intake and investigation of misconduct complaints; and police discipline. The monitoring team is expected to serve for at least five years. Successful candidates will have experience in evaluating organizations, measuring organizational change, and engaging with diverse communities, as well as expertise in law enforcement practices and statistical analysis, and familiarity with federal, New Jersey, and local criminal and civil rights laws. Applications must include the qualifications of each team member, a list of prior experience and references, a scope of work detailing the methods and activities the team would use to implement the consent decree, a list of all potential or perceived conflicts of interest, and a cost proposal.
The deadline for submitting applications is Feb. 13, 2015. The Justice Department, in consultation with the City of Newark, will select the monitoring team from applications received by that date.
The request for applications is available at: Request for Applications . The Department’s findings report and the agreement in principle can be found here: Agreement & Findings . For more information about the Civil Rights Division, please visit the Division’s website, Civil Rights Division .
Federal civil rights complaints specific to New Jersey can be directed to the U.S. Attorney’s Office civil rights complaint hotline at 855-281-3339 or can be submitted by filling out a complaint form at: Civil Rights Enforcement.
THIS IS A REQUEST FOR INFORMATION ONLY. This request is issued solely for information and planning purposes. It does not constitute a Request for Proposal (RFP) or a promise to issue a RFP in the future. This request is not part of, and shall not be governed by, any formal municipal, state, or federal procurement process. This request does not commit the parties to select an individual or firm to serve as the Monitor or a member of the monitoring team. The parties may solicit additional information from applicants to supplement information provided in response to this request. Responders are advised that the parties will not pay for any information or administrative costs incurred in response to this request; all costs associated with responding to this request will be solely at the interested party’s expense. Not responding to this request does not preclude participation in any future request for applications, if any is issued, nor does it eliminate an individual or firm from being considered for the monitor or a member of the monitor’s team.
14-022Javier Carrillo, Aka “Cara Ancha” Arrested for Drug Trafficking and Money LaunderingRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, defendant Javier Carrillo was arrested upon his arrival to the Luis Muñoz Marín International Airport from the Dominican Republic. Carrillo supplied multi-kilogram loads of cocaine to the group of 10 defendants indicted on July 16, 2014, operation Voodoo Sam II, by a federal grand jury in the District of Puerto Rico, charged with distribution of a controlled substance for purpose of unlawful importation, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration is in charge of the investigation.
Carrillo is facing three charges: distribution of a controlled substance for the purpose of unlawful importation, conspiracy to import a controlled substance, and conspiracy to launder monetary instruments.
The indictment alleges that beginning in 2005, the organization distributed wholesale and retail amounts of cocaine throughout Puerto Rico and continental United States. The defendants would obtain large amounts of cocaine in Saint Martin, Netherlands Antilles, which was then transported to Puerto Rico on board maritime vessels, commercial cargo planes, and private aircraft. They would also transport large sums of U.S. currency via aircraft and motor vessel to Saint Martin for the purchase of large quantities of cocaine and use the blackberry messenger application as well as other means of communication to communicate with each other.According to the indictment, in or about the year 2010, the defendants conspired to transport more than $12,000,000 in United States currency from Puerto Rico to Saint Martin, Netherland Antilles, knowing that the monetary instruments of funds involved in the transportation represented the proceeds of dealing in controlled substances.
In addition to the money judgment of 127 million dollars the defendants are facing, they have to forfeit properties utilized to facilitate the commission of the offense including two airplanes, an Aerostar-601 and a Cessna 340A.
Assistant U.S. Attorney Mariana Bauzà is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison.
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Jacksonville Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Christopher Shawn Warnock (43, Jacksonville) has pleaded guilty to receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a potential life term of supervised release. The plea also requires Warnock to forfeit his computer media and register as a sex offender. Warnock has been in federal custody since his arrest on December 17, 2014. A sentencing hearing has not yet been set.
According to court documents, on October 30, 2014, an agent with the Federal Bureau of Investigation (FBI) in Newark, New Jersey began an online undercover investigation to identify individuals who were using the Internet to trade and distribute images and videos depicting child pornography. The agent made online contact with Warnock and was able to download at least 24 videos of child pornography from Warnock’s computer. Further investigation traced the computer to Warnock’s residence in Jacksonville.
On December 17, 2014, law enforcement executed a federal search warrant at Warnock’s residence and seized his computer. Warnock told the agents, among other things, that he searches for child pornography online using certain key terms, and that he enjoys watching others having sex with children. Forensic analyses of Warnock’s computer revealed that it contained at least 13 videos depicting the sexual abuse of very young children. Logs of online conversations, in which Warnock had indicated his desire to exchange videos of child pornography with other Internet users, were also recovered.
This case was investigated by the Federal Bureau of Investigation, Newark and Jacksonville Offices, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jacksonville Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Christopher Shawn Warnock (43, Jacksonville) has pleaded guilty to receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a potential life term of supervised release. The plea also requires Warnock to forfeit his computer media and register as a sex offender. Warnock has been in federal custody since his arrest on December 17, 2014. A sentencing hearing has not yet been set.
According to court documents, on October 30, 2014, an agent with the Federal Bureau of Investigation (FBI) in Newark, New Jersey began an online undercover investigation to identify individuals who were using the Internet to trade and distribute images and videos depicting child pornography. The agent made online contact with Warnock and was able to download at least 24 videos of child pornography from Warnock’s computer. Further investigation traced the computer to Warnock’s residence in Jacksonville.
On December 17, 2014, law enforcement executed a federal search warrant at Warnock’s residence and seized his computer. Warnock told the agents, among other things, that he searches for child pornography online using certain key terms, and that he enjoys watching others having sex with children. Forensic analyses of Warnock’s computer revealed that it contained at least 13 videos depicting the sexual abuse of very young children. Logs of online conversations, in which Warnock had indicated his desire to exchange videos of child pornography with other Internet users, were also recovered.
This case was investigated by the Federal Bureau of Investigation, Newark and Jacksonville Offices, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Individual Sentenced for Defrauding the US Department of Veterans AffairsRead the Press Release
SAN JUAN, P.R. – Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced the sentencing of Pedro Rodríguez-Colondres to 18 months in prison by United States District Court Judge Francisco A. Besosa. Rodríguez-Colondres pled guilty to Theft of Government Funds in violation of 18 USC 641. As part of the sentencing the defendant was ordered to pay the US Department of Veteran’s Affairs $550,849.92 in restitution.
An investigation by Special Agents from the US Department of Veteran Affairs, Office of Inspector General (VA-OIG) and US Department of State, Bureau of Diplomatic Security (DSS), revealed the defendant was discharged upon his request from the US Army Reserve seven months after his enlistment and was informed he would be ineligible for reenlistment. Approximately three years later, on September 14, 1977, the defendant fraudulently enlisted using his cousin’s name Pedro Colondres-Rosa. The defendant was medically discharged for temporary disability on May 17, 1978, and five days after his discharge, the defendant requested disability benefits from Veterans Affairs. Over the last thirty years, the defendant fraudulently received in excess of $1.4 million dollars in compensation, education, and medical benefits from the Veterans Administration. Federal authorities became aware of the fraud after Rodríguez-Colondres attempted to obtain a U.S. Passport under the assumed identity of his cousin, Colondres-Rosa.
“This individual defrauded the US Department of Veteran’s Affairs for personal gain,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “We will continue to investigate and prosecute those who engage in corrupt acts which directly affect federal programs and the availability of these funds for its intended recipients. We commend the law enforcement agencies and our attorneys for their efforts in investigating this case and bringing this individual to justice.”
Individual Sentenced for Defrauding the US Department of Veterans AffairsRead the Press Release
SAN JUAN, P.R. – Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced the sentencing of Pedro Rodríguez-Colondres to 18 months in prison by United States District Court Judge Francisco A. Besosa. Rodríguez-Colondres pled guilty to Theft of Government Funds in violation of 18 USC 641. As part of the sentencing the defendant was ordered to pay the US Department of Veteran’s Affairs $550,849.92 in restitution.
An investigation by Special Agents from the US Department of Veteran Affairs, Office of Inspector General (VA-OIG) and US Department of State, Bureau of Diplomatic Security (DSS), revealed the defendant was discharged upon his request from the US Army Reserve seven months after his enlistment and was informed he would be ineligible for reenlistment. Approximately three years later, on September 14, 1977, the defendant fraudulently enlisted using his cousin’s name Pedro Colondres-Rosa. The defendant was medically discharged for temporary disability on May 17, 1978, and five days after his discharge, the defendant requested disability benefits from Veterans Affairs. Over the last thirty years, the defendant fraudulently received in excess of $1.4 million dollars in compensation, education, and medical benefits from the Veterans Administration. Federal authorities became aware of the fraud after Rodríguez-Colondres attempted to obtain a U.S. Passport under the assumed identity of his cousin, Colondres-Rosa.
“This individual defrauded the US Department of Veteran’s Affairs for personal gain,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “We will continue to investigate and prosecute those who engage in corrupt acts which directly affect federal programs and the availability of these funds for its intended recipients. We commend the law enforcement agencies and our attorneys for their efforts in investigating this case and bringing this individual to justice.”
Illinois Woman Sentenced to Prison for Travelling Interstate to Promote Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Mexican citizen residing in Illinois at the time of her arrest, was sentenced to 11 months in prison today in Scranton by United States District Court Judge Robert D. Mariani for interstate travel in aid of a drug trafficking conspiracy.
According to United States Attorney Peter Smith, the defendant, Maria Pina, age 44, previously admitted to transporting heroin from Illinois to Pennsylvania in February 2014.
Pina was charged in an Information filed in June 2014. The charge against Pina resulted from an investigation by the Drug Enforcement Administration, Homeland Security Investigators, the Pennsylvania State Police, and Berks County Detectives.
Immigration authorities have filed a detainer against Pina, who is subject to deportation proceedings and possible removal from the United States as a result of committing the felony offense.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Howard County Bloods Gang Member Sentenced to 18 Years in Prison in Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, today to 18 years in prison followed by five years of supervised release for conspiring to participate in a racketeering conspiracy, discharging a firearm in furtherance of a crime of violence and the unlawful transfer of firearms, in connection with his membership in the Bloods gang operating primarily out of Howard County, Maryland.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary L. Gardner; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.
Wright was identified as a member of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.According to his plea agreement, Wright was a member of the Bloods since at least 2010. Wright supported fellow incarcerated gang members, participated in gang meetings and discussions regarding gang sanctions, and planned retaliation against gang members suspected of cooperation.
For example, on February 22, 2012, Wright and a co-defendant robbed a rival gang member at gunpoint. In January 2013, Wright fired a gun at a victim’s residence as he and another co-defendant drove by in a truck. Two innocent bystanders were outside and their car was damaged in the shooting. Wright also sold firearms with and to fellow gang members who were prohibited from possessing the firearms.
On May 8, 2013, law enforcement executed multiple search warrants and arrested approximately 20 individuals connected with the Bloods gang, including Wright. A search warrant was executed at Wright’s residence and firearms and ammunition were seized.
To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Most recently, co-defendant Ryan Gladden, a/k/a "Fats," age 27, of Wilkes Barre, Pennsylvania, was sentenced on January 7, 2015, to 92 months in prison. Gladden has been a member of the Bloods gang since 2006 and became a leader of the “Swann” set, a sub-group of the Bloods. Co-defendant Rouchell Chesson, a/k/a “Black,” age 31, of Washington, D.C., was sentenced on December 12, 2014 to 10 years in prison. Chesson was a leader in the “Tree Top Piru” or “TTP” set of the Bloods. Christopher Lloyd McGann, a/k/a “Toker,” age 23, of Columbia, Maryland, was sentenced on December 19, 2014, to eight years in prison.
Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.Fourteen Charged in Connection with Lewiston Drug ArrestsRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that a
federal grand jury sitting in Portland indicted Tasheem Carter, 29, of Far Rockaway, New York
and Lewiston, Maine, for possession with intent to distribute cocaine and oxycodone and
Christian Dent, 31, of Far Rockaway and Lewiston, for conspiracy to distribute 28 grams or
more of cocaine base, possession with intent to distribute 28 grams or more of cocaine base and
being a felon in possession of a firearm. Also charged were Sabree Branch, 23, of Philadelphia,
Pennsylvania and Lewiston, for use of a firearm in furtherance of a drug trafficking crime,
possession of cocaine base, and unlawful use of a communication facility; Michael Boney, 28,
of Far Rockaway and Auburn, Maine, for possession with intent to distribute cocaine and
cocaine base; Isar Coleman, 31, of Lewiston, for conspiracy to distribute cocaine base; Angela
Crabtree, 32, of Auburn, for possession with intent to distribute cocaine base; Katelynn
Dubois, 21, of Wales, Maine, for conspiracy to distribute oxycodone; Lee Eirby, 66, of
Lewiston, for maintaining a drug-involved premises; Isaac Fofie, 26, of New Sharon, Maine, for
conspiracy to distribute heroin and distribution of heroin; Kourtney Francoeur, 21, of
Lewiston, for conspiracy to distribute cocaine base; Jamel Hamilton, of Far Rockaway, for
conspiracy to distribute heroin; Willie Jackson, 32, of Lewiston, for possession with intent to
distribute cocaine base; Rebecca Thompson, 33, of Lewiston, for conspiracy to distribute
cocaine base; and Barney Whitfield, 33, of Lewiston, for possession with intent to distribute
cocaine base and heroin.According to court records, the charges arise out of the distribution of cocaine and heroin
in the greater Lewiston/Auburn area. This morning, federal, state and local agents arrested
Branch, Coleman, Crabtree, Dubois, Eirby, Fofie, Francoeur, Hamilton, Jackson, Thompson and
Whitfield while executing warrants. Carter, Dent and Boney were all previously arrested on
criminal complaints. The defendants arrested today will make their initial appearances in the
U.S. District Court in Portland today.Dent faces between five and 40 years in prison, a $4,000,000 fine and supervised release
for life on the drug charge or between 10 years and life and an $8,000,000 fine if he has a prior
felony drug conviction. On the gun charge, Dent also faces up to 10 years in prison, a fine of up
to $250,000 and three years of supervised release. Branch faces between five years and life, a
fine of $250,000 and five years of supervised release on the gun charge, up to 1 year, a $100,000
fine and up to 1 year of supervised release on the possession charge and up to 4 years, a
$250,000 fine and supervised release of up to one year on the communication facility charge.
Eirby faces up to 20 years in prison, a $250,000 fine and three years of supervised release. The
other defendants face up to 20 years in prison, a $1,000,000 fine and supervised release for life.The case was investigated by the Maine Drug Enforcement Agency; the Lewiston and
Auburn Police Departments; the Maine State Police; and the Southern Maine Gang Task Force
comprised of agents and officers from the Federal Bureau of Investigation; the Bureau of
Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S.
Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland
and Biddeford Police Departments.An indictment or criminal complaint is merely an accusation and a defendant is presumed
innocent unless proven guilty in a court of law.Press Alert: On Tuesday, January 20, 2015, at 10:30a.m, U.S. Attorney Delahanty,
Lewiston Police Chief Michael Bussiere and Androscoggin County District Attorney Andrew
Robinson will hold a press conference regarding these cases at the Lewiston Police Department,
171 Park Street, Lewiston, Maine. Media members should arrive by 10:20 a.m. and will be
asked to provide identification credentials.Fourteen Charged in Connection with Lewiston Drug ArrestsRead the Press Release
A federal grand jury in sitting in Portland indicted Tasheem Carter, 29, of Far Rockaway, New York, and Lewiston, Maine, for possession with intent to distribute cocaine and oxycodone and Christian Dent, 31, of Far Rockaway and Lewiston, for conspiracy to distribute 28 grams or more of cocaine base, possession with intent to distribute 28 grams or more of cocaine base and being a felon in possession of a firearm, U.S. Attorney Thomas E. Delahanty II announced today.
Also charged were Sabree Branch, 23, of Philadelphia and Lewiston, for use of a firearm in furtherance of a drug trafficking crime, possession of cocaine base and unlawful use of a communication facility; Michael Boney, 28, of Far Rockaway and Auburn, Maine, for possession with intent to distribute cocaine and cocaine base; Isar Coleman, 31, of Lewiston, for conspiracy to distribute cocaine base; Angela Crabtree, 32, of Auburn, for possession with intent to distribute cocaine base; Katelynn Dubois, 21, of Wales, Maine, for conspiracy to distribute oxycodone; Lee Eirby, 66, of Lewiston, for maintaining a drug-involved premises; Isaac Fofie, 26, of New Sharon, Maine, for conspiracy to distribute heroin and distribution of heroin; Kourtney Francoeur, 21, of Lewiston, for conspiracy to distribute cocaine base; Jamel Hamilton, of Far Rockaway, for conspiracy to distribute heroin; Willie Jackson, 32, of Lewiston, for possession with intent to distribute cocaine base; Rebecca Thompson, 33, of Lewiston, for conspiracy to distribute cocaine base; and Barney Whitfield, 33, of Lewiston, for possession with intent to distribute cocaine base and heroin.
According to court records, the charges arise out of the distribution of cocaine and heroin in the greater Lewiston and Auburn area. This morning, federal, state and local agents arrested Branch, Coleman, Crabtree, Dubois, Eirby, Fofie, Francoeur, Hamilton, Jackson, Thompson and Whitfield while executing warrants. Carter, Dent and Boney were all previously arrested on criminal complaints. The defendants arrested today will make their initial appearances in the U.S. District Court in Portland today.
Dent faces between five and 40 years in prison, a $4 million fine and supervised release for life on the drug charge or between 10 years and life in prison and an $8 million fine if he has a prior felony drug conviction. On the gun charge, Dent also faces up to 10 years in prison, a fine of up to $250,000 and three years of supervised release. For the gun charge, Branch faces between five years and life in prison, a fine of $250,000 and five years of supervised release; for the possession charge, Branch faces up to one year in prison, a $100,000 fine and up to one year of supervised release; and for the communication facility charge, faces up to four years in prison, a $250,000 fine and supervised release of up to one year. Eirby faces up to 20 years in prison, a $250,000 fine and three years of supervised release for maintaining a drug-involved premises. The other defendants face up to 20 years in prison, a $1 million fine and supervised release for life.
The case was investigated by the Maine Drug Enforcement Agency, the Lewiston and Auburn Police Departments, the Maine State Police, the Southern Maine Gang Task Force comprised of agents and officers from the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Portland and Biddeford Police Departments.
An indictment or criminal complaint is merely an accusation and defendants are presumed innocent unless proven guilty in a court of law.
On Tuesday, Jan. 20, 2015, at 10:30 a.m, U.S. Attorney Delahanty, Chief Michael Bussiere for the Lewiston Police and District Attorney Andrew Robinson for Androscoggin County will hold a press conference regarding these cases at the Lewiston Police Department at 171 Park Street in Lewiston. Media members should arrive by 10:20 a.m., and will be asked to provide identification credentials.
Four Portland Residents Plead Guilty to $1 Million Tax Fraud SchemeRead the Press Release
WASHINGTON - Acting Deputy Assistant Attorney General Larry J. Wszalek for the Department of Justice's Tax Division, U.S. Attorney S. Amanda Marshall for the District of Oregon and Chief Richard Weber for the Internal Revenue Service-Criminal Investigation (IRS-CI) announced that Jheraun Dunlap, Ernest Bagsby, Jermaine Moore and Brandi McCall pleaded guilty today to a $1 million federal tax refund fraud scheme.
Dunlap admitted to filing 208 false federal income tax returns with false wages, false withholding and false refundable credits that claimed a total of more than $1 million in fraudulent refunds. Dunlap filed false tax returns using the names and social security numbers of other individuals obtained directly and through Bagsby, Moore and McCall. Dunlap filed a number of false tax returns using identities stolen by co-defendant Carolyn Gallagher, who previously pleaded guilty to identity theft. Dunlap also used addresses obtained by Bagsby, Moore and McCall to receive stored-value debit cards loaded with fraudulent income tax refunds.
On Jan. 12, all four defendants pleaded guilty before Senior District Judge Robert E. Jones in the District of Oregon. Dunlap pleaded guilty to conspiracy to defraud the government, wire fraud and aggravated identity theft. Bagsby and Moore pleaded guilty to conspiracy to defraud the government, theft of government funds and aggravated identity theft. McCall pleaded guilty to conspiracy to defraud the government. All four defendants have agreed to pay full restitution to the U.S. Treasury in the amount of $427,896.
This case was investigated by the IRS-CI's Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Lori A. Hendrickson of the Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division's website http://www.justice.gov/tax.
Four Members of ‘Dirty Block’ Atlantic City, New Jersey, Gang Convicted on Drug Conspiracy and Weapons ChargesRead the Press Release
CAMDEN, N.J. – Four members of a criminal street gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, New Jersey, were convicted at trial today on drug conspiracy and weapons charges, U.S. Attorney Paul J. Fishman announced.
The defendants – Kareem Bailey, 21, Terry Davis, 26, Lamar Macon, 26, and Dominique Venable, 24, all of Atlantic City – were each convicted of conspiracy to distribute one kilogram or more of heroin, possession of firearms in furtherance of a drug trafficking crime and brandishing and discharging firearms in furtherance of the conspiracy following a six-week trial before U.S. District Judge Joseph E. Irenas in Camden federal court. The jury deliberated approximately five hours before returning the verdicts.
According to documents filed in this case and the evidence presented at trial:
The four men are members of a gang known as “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,” which operated in a geographic area of Atlantic City that includes the public housing apartment complexes of Stanley Holmes Village Public Housing Complex, Renaissance Plaza and Schoolhouse Apartments.
The defendants participated in a violent street-level drug trafficking organization that controlled heroin sales through the possession of dozens of firearms and the use of gun violence, including at least one homicide and several non-fatal, drug-related shootings.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s convictions.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.The charges and allegations against the other defendants arrested in this investigation are merely accusations and the defendants are considered innocent unless and until proven guilty.
15-021
Defense Counsel:
Bailey: John Holliday Esq., Hamilton, N.J.
Davis: Gina Capuano Esq., Philadelphia
Macon: William Spade Esq., Philadelphia
Venable: James Murphy Esq., Princeton, N.J.Former United States Postal Service Employee IndictedRead the Press Release
GREENSBORO, N.C. – United States Attorney for the Middle District of North Carolina Ripley Rand announced today that a former United States Postal Service employee has been indicted by a federal grand jury for allegedly (1) committing Social Security fraud, (2) committing identity theft, and (3) committing the unauthorized use of an access device to obtain something of value.
The indictment alleges that Joyce Huskey Stanley, age 55, of Reidsville, N.C., falsely used Social Security numbers not assigned to her (two counts), unlawfully used the identification of another (two counts), and used an unauthorized access device with intent to defraud another (one count).
Ms. Stanley was released on a $50,000 unsecured bond.
The case is being investigated by the United States Postal Service – OIG, United States Secret Service and the Rockingham County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Frank Chut.
An Indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Owner of Gallup-Based Oil Distributor Pleads Guilty to Federal Bankruptcy Fraud ChargeRead the Press Release
Plea Agreement Requires $265,830.00 Restitution Payment
ALBUQUERQUE – Michael P. Mataya, 64, of Thoreau, N.M., pleaded guilty this morning to a bankruptcy fraud charge under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, the United States may recommend that Mataya be sentenced to a maximum term of 24 months of imprisonment. It also requires Mataya to pay restitution in the amount of $265,830.00 to the bankruptcy estate of his bankrupt company so that the funds may be used to pay creditors.
Mataya was the sole owner of Indian Capitol Distributing, Inc. (Indian Capitol), a Gallup-based oil and gas distributor, and Mataya’s Travel Plaza, a truck stop in Gallup, N.M. He was indicted on Feb. 26, 2014, and charged with three counts of bankruptcy fraud. Counts 1 and 2 of the indictment charged Mataya with making materially false statements under oath on May 5, 2009 and May 28, 2009, before the U.S. Bankruptcy Court in bankruptcy proceedings involving Indian Capitol. Count 3 charged Mataya with fraudulently transferring assets belonging to Indian Capitol to Mataya’s Travel Plaza.
Today Mataya pled guilty to Count 2 of the indictment. According to Mataya’s plea agreement, Indian Capitol filed for bankruptcy in April 2009. At the time, the company had dozens of creditors. After the bankruptcy court entered an order permitting Indian Capitol to use cash collateral during an emergency period on the condition that it not transfer assets to any entity owned by Mataya, Mataya provided false testimony before the court to conceal the fact that Indian Capitol was delivering fuel to Mataya’s Travel Plaza without payment in violation of the court’s order.
In entering his guilty plea, Mataya admitted falsely testifying because he knew that the court would not permit the transfer of fuel from Indian Capitol to Mataya’s Travel Plaza. He also admitted falsifying invoices and bills of lading to conceal this unlawful transfer of assets. He acknowledged that the total value of the fuel unlawfully transferred to Mataya’s Travel Plaza was $265,830.00.
Mataya remains on conditions of release and under pretrial supervision pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney C. Paige Messec.
Former Investor Relations Executive Sentenced to Prison for Insider TradingRead the Press Release
HOUSTON - Stephen B. Gray, 57, of Houston, has been sentenced to federal prison following his conviction for securities fraud in an insider trading scheme, announced U.S. Attorney Kenneth Magidson. Gray pleaded guilty Sept. 26, 2014.
Today, U.S. District Judge Melinda Harmon, who accepted Gray’s plea, handed Gray a sentence of 46 months in federal prison and ordered him to pay a $7,500 fine. Gray collected at least $326,159 as a result of his illegal activity. Judge Harmon ordered Gray to forfeit that amount as part of his sentence.
From at least September 2009 through at least May 2012, Gray engaged in an insider trading scheme to use and trade upon material non-public information he acquired during his employment at an investor relations firm based in Houston. Specifically, Gray, as CEO, had access to press releases and confidential information used to prepare the releases by the firm for its clients prior to their issuance to the investing public. The press releases contained material, non-public information about business events and announcements relating to the businesses of the firm’s clients.
In violation of firm policies and in breach of his duties to the firm and its clients, Gray traded in the firm stock of clients and engaged in trades in options of the stock of firm clients before announcement of material information by these companies via press releases by the firm. Gray obtained advance knowledge of material information that would be detailed in press releases issued by firm clients. He then traded while in possession of such material information before the information became public and profited on the movement in the stock price.
Without access to non-public information, trades in options, particularly short- term options, can carry significant risk because the trader is betting that the common stock underlying the options will increase significantly (if buying call options) or decrease significantly (if buying put options), prior to expiration. If the stock does not meet the target price by the expiration date, the options expire out of the money and the trader loses all of the money he paid to purchase the option. The shorter the term of the option, the riskier it is, because the common stock has less time to reach the target price.
Gray knew the prices of client stock were likely to increase or decrease after the information in client company announcements became public and that he would therefore be able to buy or sell his options for a profit.
Gray did not disclose his trades of client securities to the firm or its clients and used the material non-public information he acquired as part of his employment with the firm to make profitable trades and trades to avoid losses, in his personal brokerage account at TD Ameritrade.
Gray traded in firm client securities despite the firm’s written policies, which strictly prohibited firm employees from trading in any security issued by a firm client. Gray drafted these policies and was personally responsible for ensuring firm employees received and signed copies of each.
Gray, who had previously been released on bond, was permitted to remain on bond but ordered to voluntarily surrender either to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading up to the arrest was conducted by the Houston office of the FBI with valuable assistance from the Securities Exchange Commission in Fort Worth. Assistant U.S. Attorney Belinda Beek prosecuted the case.
Former Finance VP Sentenced for Embezzlement SchemeRead the Press Release
The former Vice President of Finance for the NW Division of US Foodservice was sentenced today in U.S. District Court in Tacoma to 30 months in prison, three years of supervised release and $496,845 in restitution, announced Acting United States Attorney Annette L. Hayes. JASON A. GREEN, 37, of Puyallup, Washington, conspired with his friend, Jimmie Dillingham, to steal from GREEN’s employer, US Foodservice. GREEN pleaded guilty to mail fraud, resulting in a loss of nearly half a million dollars to US Foodservice, in November 2013. In November 2014 Dillingham pleaded guilty to mail fraud and will be sentenced later this year. At the sentencing hearing U.S. District Judge Ronald B. Leighton told GREEN, “This offense is serious, it tears at the fabric of society . . . [it is the type of offense that] has a corrosive effect on people who didn’t have your opportunity. You were blessed. I can’t see the motivation.”
According to records in the case, beginning in July 2009 and continuing until late 2010, GREEN and Dillingham made up phony invoices indicating that Dillingham’s company had done work for US Foodservice. GREEN abused his access to payment systems at the company to approve expenditures for work that was never done. GREEN changed computer codes in the accounting records to conceal the fraud. In one part of the scheme, the men invented a security company and submitted phony bills for work it allegedly did at a Clark County warehouse. GREEN used his access to US Foodservice accounts to cancel the contract with a legitimate company and instead steered the business to Dillingham’s company. The warehouse property was later sold. After the men submitted the invoices for payment, Dillingham would deposit the checks and share the funds with GREEN. Both men gambled significant amounts of the embezzled money at area casinos.
In December 2010, the company tried to untangle shortfalls in various accounts and GREEN quit his job when confronted about fraudulent entries in the books. The company notified law enforcement which began the financial investigation.
The case was investigated by the FBI and the U.S. Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Arlen Storm.
Former Denver City Councilman Sentenced to Five Years in Federal Prison for Role in Midland-Based Heroin and Meth Distribution RingRead the Press Release
In Midland today, U.S. District Judge Robert A. Junell sentenced 50-year-old former Denver City (TX) councilman Joe Anthony Kay to five years in federal prison for his role in a Midland-based heroin and methamphetamine distribution ring, announced Acting United States Attorney Richard L. Durbin, Jr., Midland Police Chief Price Robinson and Texas Department of Public Safety Director Steve McCraw.
In addition to the prison term, Judge Junell ordered that Kay be placed under supervised release for a period of five years after completing his prison term.
On August 31, 2014, state and local authorities arrested Kay based on a federal grand jury indictment charging him with one count of conspiracy to possess with intent to distribute controlled substances. Kay pleaded guilty to the charge on September 16, 2014. By pleading guilty, Kay admitted that from June 2010 to April 2014, he conspired with others to distribute narcotics in the Midland, Odessa, and Denver City areas. According to court records, Kay conspired to distribute 20 kilograms of cocaine, 2 kilograms of heroin, 1 kilogram of methamphetamine, and 100 pounds of marijuana.
Kay is the last of seven defendants to be convicted and sentenced for their roles in this drug trafficking scheme. Yesterday, Judge Junell sentenced drug supplier Luis Jose Tarango Terrazas, age 51, of Fabens, TX, to 70 months imprisonment. Last month, Judge Junell sentenced 42–year-old Michael Alexander Lozano of Denver City, and 46–year-old William Ray Warren of Midland, each to ten years imprisonment; 30-year-old Cameron Edward Gee of Midland, to 71 months imprisonment; 31-year-old Quentin Zachery Bailey of Odessa, to 46 months imprisonment; and, 24-year-old Merin James McCulley of Seagraves, TX, to two years imprisonment.
This investigation was conducted by the Midland Police Department together with the Texas Department of Public Safety. Assistant United States Attorney Austin Berry prosecuted this case on behalf of the Government.
Former Crater Lake Chef Sentenced to 18 Months Prison for Fighting Park RangersRead the Press Release
MEDFORD, Ore. - On Tuesday, January 13, 2015, Senior U.S. District Judge Owen M. Panner sentenced John Charles Saubert, 47, to 18 months in federal prison for forcibly resisting federal officers. Saubert will be on three years of supervised release after he completes his prison term.
On September 23, 2014, Saubert was terminated as a cook with Xanterra Parks and Resorts at Crater Lake National Park due to excessive alcohol and performance issues. During a shuttle ride back to his dorm, Saubert was disturbing other riders and allegedly fondled a woman’s leg after being told to stop. Park rangers and the Xanterra manager contacted Saubert at his dorm room and warned that Saubert would be allowed to remain on the premises until the next day, but only if he remained in his dorm room.
Approximately 10 minutes later, the park rangers observed Saubert staggering outside and being very loud. When the rangers told Saubert he was under arrest, Saubert responded, “I’m not going without a fight.” Saubert jerked his hand away from a ranger’s grasp, hitting the ranger in the face, and shoved another ranger against the patrol car. Saubert was wrestled to the ground but continued to fight despite the officers’ commands to stop resisting. One ranger suffered bruised knees as a result of the fight. After rangers placed Saubert in a patrol car, Saubert continued screaming profanities, banging his head against the window, and threatening to kill the officers and their families.
At Saubert’s initial federal court appearance the next day, he was released from custody and required to re-appear a week later. Saubert failed to appear, and an arrest warrant was issued. The U.S. Marshal’s tracked Saubert to a luxury resort in southern Utah, where he began working as a chef. The U.S. Marshal’s arrested Saubert on October 5th and transported him back to Oregon.
This case was investigated by the Crater Lake Park Rangers and the U. S. Marshal’s Service, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Former Canaan Man Pleads Guilty to Cocaine and Oxycodone 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 Frank
Curtis, 35, formerly of Canaan, Maine pleaded guilty today in U.S. District Court to conspiracy
to possess with the intent to distribute and to distribute cocaine and oxycodone.According to court records, between January 2010 and March 2012, Curtis conspired
with Maurice McCray, William Waters and others in Waterville, Maine and surrounding
communities to obtain cocaine and oxycodone from out-of-state dealers, bring it to Central
Maine and distribute it.
The defendant faces up to 20 year in prison and a $1,000,000 fine. He will be sentenced
after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine
Drug Enforcement Agency with assistance from the Waterville Police Department.Forfeited Funds Returned to Beaumont ISDRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Nearly $900,000 of forfeited funds have been paid towards financial losses suffered by the Beaumont Independent School District (BISD), announced U.S. Attorney John M. Bales today.
Devin Wayne McCraney, former Director of Finance for BISD, and Sharika Baksh Allison, former Comptroller for BISD, were sentenced on Sep. 18, 2014 for fraud and conspiracy to commit fraud upon programs receiving federal funds. McCraney and Allison surrendered to the Bureau of Prisons on Oct. 21, 2014.
As part of their sentences, McCraney and Allison were ordered to pay restitution in the amount of $4,041,705.27 to BISD. On Jan. 15, 2015, the U.S. District Clerk forwarded $896,915.33 in forfeiture funds to BISD as part of that restitution.
This case was prosecuted as part of the Joint Task Force established in March 2014 between the U.S. Attorney’s Office for the Eastern District of Texas and the Jefferson County District Attorney’s Office to investigate and prosecute major crimes involving abuse of the public trust in Jefferson County, Texas.
After McCraney and Allison were indicted in January 2014, more than $900,000 in assets, including cash and luxury vehicles, were seized pursuant to the Justice Department’s asset forfeiture procedures. The majority of those assets were forfeited to the federal government when McCraney was sentenced. Assets were also forfeited from Allison in the criminal case. Aside from those forfeited assets, McCraney and Allison had spent nearly all of the remaining money that they embezzled from BISD.
Because McCraney and Allison did not have enough other assets to pay anything towards the $4 million restitution judgment, the U.S. Attorney requested for the Justice Department’s Asset Forfeiture and Money Laundering Section (AFMLS) to approve application of the forfeited assets to the restitution debt so that the forfeited funds could be paid to BISD. AFMLS expedited the U.S. Attorney’s request and approved it in a matter of days.
“Returning forfeited assets to the victims of financial crime is an important priority of the Justice Department’s asset forfeiture program,” said U.S. Attorney Bales. “We endeavor to seek restitution to crime victims whenever possible in our cases. Unfortunately, criminals often spend all of the money that they steal, which ultimately leaves very little else for the victims. Asset forfeiture is a key law enforcement tool because it helps to restrain a criminal’s assets and preserve them for crime victims.”
“Given how these defendants spent their ill-gotten gains and had very little of value to show for it, we are fortunate that there was anything to forfeit at all,” said U.S. Attorney Bales. “Thanks to the efforts of the task force, we were able to find what assets of value they did have, seize them, forfeit them, and now have them paid to BISD.”This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Education Office of Inspector General. This case was prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.
Federal Court Sentences Davenport Man for Conspiracy to Distribute Marijuana and False Statements to a Federal Grand JuryRead the Press Release
DAVENPORT, IA- On January 16, 2015, Harrison Sean Summers, age 23, of Davenport, Iowa, was sentenced by United States District Court Judge John A. Jarvey to two concurrent terms of 30 months imprisonment, after pleading guilty to conspiracy to distribute marijuana and false statements to a federal grand jury, announced United States Attorney Nicholas A. Klinefeldt. Summers was also ordered to serve two years of supervised release, and to pay $200 towards the Crime Victims Fund.
Beginning by at least May 2011, and continuing until approximately March 2013, Summers entered into an agreement to receive marijuana from co-defendant Jared Fromknecht to distribute to others. Summers was aware that Fromknecht was shipping marijuana via mail from Colorado to Iowa for re-distribution. As part of this agreement, Summers paid Fromknecht for marijuana received by depositing drug proceeds in a bank account. At sentencing, Summers admitted to being responsible for over 40 kilograms of marijuana.
As relates to the false statements charge, Summers appeared in front of a federal grand jury on or about March 20, 2013, and falsely testified under oath that he had not received marijuana from Fromknecht.
This case was investigated by the U.S. Drug Enforcement Administration, Iowa Department of Public Safety-Division of Narcotics Enforcement, the United States Postal Inspection Service, and the Davenport, Iowa, Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Federal Court Issues Preliminary Injunction Against South Dakota Medical laser ManufacturerRead the Press Release
A federal court has barred a Rapid City, South Dakota, company and its president from further manufacturing and distributing its laser devices, which they marketed to treat a variety of medical conditions and diseases, the Justice Department announced today.
U.S. District Court Chief Judge Jeffrey L. Viken for the District of South Dakota entered the preliminary injunction on Wednesday against Robert “Larry” Lytle and his businesses, QLasers PMA, 2035 PMA, and 2035 INC., in an action filed by the Justice Department to enforce provisions of the federal Food, Drug, and Cosmetic Act (FDCA). The court’s order prohibiting the manufacture and distribution of the QLaser devices also applies to Lytle’s business affiliates and franchisees.
Last October, the Justice Department and the U.S. Attorney’s Office for the District of South Dakota filed a civil complaint for injunctive relief against Lytle and his businesses, alleging that they have been violating the FDCA by nationally marketing Lytle’s laser devices for the treatment of more than 200 different diseases and medical disorders without clearance or approval from the U.S. Food and Drug Administration (FDA). The preliminary injunction entered on Wednesday takes effect immediately and will remain in force while the government’s case seeking a permanent injunction proceeds to final judgment.
Judge Viken found, based on what he called an “extensive and well developed record,” that Lytle and his various businesses “have shown no intent to discontinue their activities and voluntarily comply with the FDCA. “The injunction bars the defendants from continuing to market and distribute any medical devices until they receive written permission from the FDA to do so.
Lytle, whom the court noted was a dentist in Rapid City until his license to practice dentistry was permanently revoked by the South Dakota Board of Dentistry in 1998, markets the devices by soliciting purchasers to join his “private membership associations” or “PMAs” before purchasing his lasers. As the court explained, however, “Hiding behind a curtain of private membership associations, 2035 PMA and QLaser PMA, does not shield Mr. Lytle from the authority of the FDCA or the jurisdiction of the court.”
“With the entry of this preliminary injunction, we have taken another step toward ensuring that only medical devices that have been shown to be safe and effective are placed in the hands of the American consumer,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Everyone who deals in products that affect people’s health must comply with the FDCA.”
According to court documents filed in the case, the defendants have been distributing the QLaser devices with labeling that contains false and misleading claims, touting their use in treating such serious conditions as cancer, HIV/AIDS, venereal disease and diabetes. Although two of his laser devices were FDA-cleared for providing temporary relief of pain associated with osteoarthritis of the hand, none of the devices has been cleared or approved to treat any other medical conditions. The government alleges that not only are there no published clinical studies to support the use of Lytle’s lasers to treat other serious medical conditions, but that in fact, using the devices according to the device’s labeling could be dangerous to health. The court’s order finds that the United States is substantially likely to succeed on the merits on this claim and the others within the government’s complaint.
“The preliminary injunction granted should provide consumers a renewed sense of confidence,” said U.S. Attorney Brendan V. Johnson for the District of South Dakota. “This action is crucial to prevent the company from continuing to operate on the periphery of the law, and potentially jeopardize the health and safety of its consumers.”
The FDA referred this enforcement action to the Department of Justice. The government’s case is being litigated by Trial Attorney Ross S. Goldstein of the Civil Division’s Consumer Protection Branch, with assistance from the U.S. Attorney’s Office for the District of South Dakota and the FDA’s Office of Chief Counsel.