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26 February 2015
Former Wireless Executive Arrested for Selling Confidential Financial InformationRead the Press Release
BOSTON – A Connecticut executive was arrested this morning on charges that he sold confidential business information regarding the wireless industry to an analyst at a Boston-based financial services firm.
James Dunham, 59, of Glastonbury, Conn. was arrested on a federal criminal complaint on charges of mail fraud and wire fraud. He is scheduled to appear in U.S. District Court in Boston at 2:45 p.m. today before Chief Magistrate Judge Jennifer C. Boal.
The complaint alleges that Dunham, formerly the Chief Operating Officer (COO) of a retailer for a major provider of wireless services, had access to confidential information regarding sales, compensation, and product launches at the retailer’s 400 locations. For more than three years, and unbeknownst to his employer, Dunham had a secret consulting agreement with a financial services firm to provide confidential information in return for which he was paid $2,000 per month.
Specifically, the complaint alleges that seven research notes prepared and distributed by the financial services firm included information supplied by Dunham, including information regarding the status of certain product launches, the number of new subscribers to a specific wireless provider, and sales and return information for specific smartphones. In particular, Dunham was allegedly the source for an April 11, 2013, research note in which the firm reported that product returns were exceeding sales for a specific smartphone. Following distribution of that note, the stock price for the smartphone manufacturer dropped seven percent in a single day.
“The black market for business secrets continues to flourish,” said United States Attorney Carmen M. Ortiz. “Sometimes business secrets are sold for use in insider trading; sometimes they are used for other improper purposes. But the sale of confidential business information by corporate insiders—in violation of their duties to employers, business partners, customers, and shareholders—is always wrong and illegal.”
“As alleged, Mr. Dunham has undermined the credibility and efficiency of capital markets in favor of lining his own pocket by profiting from the sale of confidential information,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “This complaint should serve as a reminder that no one is excused from obeying the laws of this country, and the FBI will continue to root out corporate fraud wherever it is found.”
The maximum sentence under each charging statute is 20 years in prison, three years of supervised release, and a fine of the greater of $250,000, or twice the gross gain or loss. 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.
The case was investigated by the Federal Bureau of Investigation, Boston Field Division. The United States Attorney’s Office also received valuable assistance from the Securities & Exchange Commission. The case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Windham Couple Sentenced on Firearms ChargesRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Theodore “Ted” Thomes, 56, and his wife, Renee Thomes, 52, both formerly of Windham, Maine, and now of St. Croix, U.S. Virgin Islands, were sentenced today in U.S. District Court by Judge D. Brock Hornby on firearms charges. Ted Thomes was sentenced to 27 months in prison and three years of supervised release for being a felon in possession of firearms. Renee Thomes was sentenced to 30 days in prison and three years of supervised release for illegally transferring those firearms to an out-of-state resident. Ted and Renee Thomes pleaded guilty on September 30 and October 1, 2014, respectively.
According to evidence presented at the plea and sentencing hearings, in 2011, the couple stole several handguns belonging to a Windham neighbor for whom they were serving as caretakers. In December 2011, Ted Thomes, a convicted felon who had been convicted in Maine in 2009 for being a felon in possession of firearms, took the stolen handguns to the home of another neighbor for safekeeping. In June 2012, Renee Thomes retrieved the stolen handguns and illegally gave them to a New Hampshire auctioneer to be sold. The firearms were auctioned in July 2012 and the couple received about $11,000 in sales proceeds.
In imposing the 27-month sentence on Ted Thomes, Judge Hornby noted the need to promote respect for the law given Ted Thomes’ 2009 conviction for the same crime. Renee Thomes was sentenced to a term in prison because she sent a letter to the Court containing several material false statements in anticipation of her sentencing.
The investigation was conducted by the Windham Police Department; the Maine Attorney General’s Office; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Former Mill Superintendent for Shasta County Gold Mine Sentenced for Environmental CrimesRead the Press Release
SACRAMENTO, Calif. — Kiedock Kim, age 60, resident of Biggs, California, was sentenced today by United States District Judge Troy L. Nunley to six months in prison, and ordered to pay $107,160 in restitution based on two convictions for depredation of United States property and negligent discharge of a pollutant to a water of the United States, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kim was the mill superintendent for the French Gulch Mine in Shasta County. As part of the mining operation, gold ore was brought from deep underground to the surface, transported to the mine mill and crushed, mixed with water to create slurry, and mixed again with foaming agents to cause the gold to separate from the remaining slurry. The gold was then removed, and the resulting waste from the mining operation — tailings, slurry, and wastewater — contained arsenic and lead.
In February 2007, a California Central Valley Regional Water Quality Control Board inspector advised the mine operators, including Kim, that the discharge of these pollutants was prohibited without a permit under the National Pollution Discharge Elimination System (NPDES). The French Gulch Mine did not have a NPDES permit, and Kim repeatedly represented to the inspector that the water treatment system used at the mine was a closed circuit, meaning there were no discharges from the water treatment system, and the mine and mill operations reused the wastewater after it had been treated.
In fact, the mine was generating more liquid wastes than the treatment system could handle, and on many occasions the system was not functioning properly causing the mine operators to discharge the liquid wastes into abandoned mines, an improvised leach field, a waste rock area, or on the county road surrounding the mine. Much of the discharges were on BLM land and resulted in hazardous levels of arsenic and lead contaminating the BLM property. The BLM conducted a study and determined that the cost to remove the contaminants and restore the property is $107,160.
In addition, the mine improperly disposed of its mine waste rock, which contained high arsenic and lead concentrations, by using it to resurface the county road leading to the mine, which is on BLM land. Even though the mine was later forced to remove the waste rock, its conduct constitutes depredation of United States property.
According to the plea agreement, Kim ordered the construction of a substandard pipe system to remove contaminated liquid wastes from the mill to an abandoned mine on BLM property. On June 24, 2006, the pipe system broke, and during a period of six to eight hours, spilled up to 10 tons of mine tailings into Scorpion Gulch Creek, which eventually leads into the Whiskeytown National Recreation Area reservoir. The spilled mine tailings travelled about seven miles from the mine to the Whiskeytown reservoir, which empties into the Sacramento River.
“EPA is committed to protecting human health along with our natural resources,” said Jay M. Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “The defendant not only discharged potentially lethal byproducts from mining operations, he tried to hide it from investigators. Today’s sentence demonstrates that if companies and their managers skirt environmental laws, EPA and its partners will hold them accountable.”
This case is the product of an investigation by the United States Environmental Protection Agency, Criminal Investigation Division, with assistance from the Bureau of Land Management; the National Park Service, and the California Central Valley Regional Water Quality Control Board.
Former Hospice COO Charged with Health Care Fraud, Lying to A Federal Grand JuryRead the Press Release
PITTSBURGH - A Louisiana woman has been indicted by a federal grand jury in Pittsburgh on charges of health care fraud and making false declarations before a grand jury, United States Attorney David J. Hickton announced today.
The five-count indictment named Mary Ann Stewart, 47, of Bossier City, La., as the sole defendant.
According to the indictment, Stewart was the chief operations officer for Horizons Hospice LLC, which provided end-of-life hospice care to eligible patients. A significant number of patients were eligible for Medicare and Medicaid. The indictment alleges Stewart orchestrated a scheme whereby she caused her staff to place non-qualifying patients into hospice care that were not appropriate, and then recertified the patients for continued hospice care. The indictment also alleges that Stewart testified untruthfully to a series of four questions before a federal grand jury.
The law provides for a maximum total sentence of 10 years in prison on the health care fraud count and five years in prison on the making false declarations before a grand jury counts, a fine of $250,000 on each count, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation, United States Department of Health and Human Services – Office of the Inspector General, and the Medicaid Fraud Control Section of the Pennsylvania Office of Attorney General conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Division of Highways administrator sentenced for misleading FBI agentRead the Press Release
WHEELING, WEST VIRGINIA – Former West Virginia Division of Highways administrator Edward Matthew Tuttle, 39, of Buckhannon, West Virginia, was sentenced in federal court for misleading the Federal Bureau of Investigation, United States Attorney William J. Ihlenfeld, II, announced today.
Tuttle pled guilty in August 2014 to one count of “False Statement to a Federal Agent.” Tuttle made materially false statements to an F.B.I. agent who questioned him as part of an ongoing federal investigation into the Equipment Division of the West Virginia Division of Highways. He was sentenced to three years of probation.
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government. The case was investigated by the U.S. Attorney’s Office Public Corruption Unit. Agents and officers from the Federal Bureau of Investigation, the West Virginia State Police, and the State Commission on Special Investigations led the inquiry.
Chief U.S. District Judge John Preston Bailey presided.
Former Correctional Officer, Michigan Woman Sentenced in Bribery SchemeRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a former correctional officer at the U.S. Penitentiary in Pollock, La., along with the daughter of an inmate were sentenced for their roles in a conspiracy to bribe a correctional officer to smuggle cell phones into the prison. Federal inmates are prohibited from possessing cell phones.
Maggie Kay Comeaux, 28, of Ball, La., was sentenced to 10 months in prison and two years of supervised release on one count of conspiracy. Paris Smith, 21, of Detroit, Mich., was sentenced to two years of probation (including community service hours) and ordered to pay a $500 fine on one count of providing contraband to a prisoner. United States District Judge Donald E. Walter presided over the hearings. According to the November 24, 2014 guilty pleas, from January 2013 to April 2013, Comeaux accepted a $400 bribe from Smith and two federal inmates to smuggle a cell phone and charging cords into the prison. At least one phone was subscribed in Smith’s name. The inmates also used GreenDot cards to provide thousands of dollars to Comeaux.
The U.S. Department of Justice-Office of the Inspector General investigated the case. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Five Indicted for Passing Counterfeit CurrencyRead the Press Release
Five people were indicted by a federal grand jury for conspiracy and passing counterfeit U.S. currency, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Eugene Allen, 55; Lisabeth Dayton, 33, of Canton; Joshua Moore, 24, of Hartville; Aaron Steed, 26, and David Wyatt, 44, of Akron.
The defendants executed a scheme whereby they would receive and pass counterfeit U.S. currency at businesses across Northern Ohio and elsewhere, purchasing goods and receiving genuine U.S. currency in exchange, according to the indictment.
The defendants received counterfeit $50 and $100 bills and passed them at stores in Mansfield, St. Clair Township, Canton and elsewhere, according to the indictment.
The United States Secret Service in Cleveland conducted the investigation. The case is being prosecuted by Assistant United States Attorney Miranda E. Dugi.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the their roles in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Inmate Sentenced for Bribing Correctional Officer to Smuggle Contraband into PenitentiaryRead the Press Release
ABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno announced today that Glenn Ming Young, 30, of Washington, D.C., was sentenced to 47 months imprisonment in the United States District Court for the Western District of Virginia in Abingdon after having previously been found guilty by a jury of one count of bribery of a public official, one count of conspiracy to bribe a public official. Young also pleaded guilty to possession of contraband.
According to evidence presented at the trial by Assistant United States Attorney Zachary T. Lee and Special Assistant United States Attorney Kevin Jayne, Young was an inmate at the United States Penitentiary Lee County, Virginia, in Jonesville, Virginia, and between August 2013 and November 2013, Young made multiple monetary payments, totaling at least $2,000, to a correctional officer of the United States Bureau of Prisons at the penitentiary in return for the officer smuggling tobacco products and a cellular telephone into the penitentiary. These items were then provided to Young in violation of Bureau of Prisons regulations.
The investigation of this case was conducted by the Federal Bureau of Investigation, United States Bureau of Prisons Special Investigative Service at United States Penitentiary Lee County, and the United States Department of Justice Office of the Inspector General. Assistant United States Attorney Zachary T. Lee and Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Essex County, New Jersey, Man Sentenced to more than 10 Years in Prison for Union County CarjackingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 121 months in prison for a carjacking that occurred in December 2012 in Union County, U.S. Attorney Paul J. Fishman announced.
Larry Brown, 24, of Newark, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of theft of a motor vehicle by force, violence, and intimidation, and one count of use of a firearm in furtherance of a crime of violence. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court: During the morning of Dec. 26, 2012, Brown approached an individual who was sitting in a parked 2012 BMW X5 in Hillside. Brown pointed a firearm at the victim, tapped on the vehicle’s window with the gun, and ordered the victim to get out of the car. After the victim exited the vehicle, the victim was robbed of personal items by a second individual. Brown and the other individual then entered the victim’s vehicle and fled the area.
The vehicle was located in East Orange later that day and law enforcement officers observed two individuals, one of whom was Brown, walking away from the carjacked vehicle. Brown later admitted that he carjacked the vehicle in Hillside earlier that day. Brown also told law enforcement officers where he put the keys to the carjacked vehicle and the gun he used during the carjacking, both of which were recovered by law enforcement officers.
In addition to the prison term, Judge Martini sentenced Brown to five years of supervised release and ordered him to pay $1,850 in restitution.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of John P. Woods in Newark; the N.J. State Police, under the direction of Col. Rick Fuentes, Superintendent; special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankelin Newark; the Hillside Police Department, under the leadership of Chief Louis Panarese; the East Orange Police Department, under the leadership of Chief William C. Robinson; and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park; as well as criminal investigators from the U.S. Attorney’s Office in Newark with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lucy Muzzy of the U.S. Attorney’s Office Criminal Division in Newark.
15-069
Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, NewarkDistrict Man Sentenced to 25 Years in Prison for Child Sexual Abuse of His Stepdaughter Offenses Took Place over Multiple YearsRead the Press Release
WASHINGTON – A 28-year-old man, of Washington, D.C., was sentenced today to 25 years in prison for sexually abusing his stepdaughter over a period of several years, U.S. Attorney Ronald C. Machen Jr. announced.
The man, who is not identified here to protect the privacy of the victim, was found guilty by a jury in October 2014 of multiple counts of first-degree and second-degree child sexual abuse, with aggravating circumstances. He was sentenced by the Honorable John Ramsey Johnson. Upon completion of his prison term, the man will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a period of 10 years.
According to the government’s evidence, the defendant began molesting his stepdaughter in 2008 or early 2009, when she was 7 or 8 years old. He escalated the inappropriate touching to full sexual intercourse when she turned 11. The abuse occurred primarily on weekends, when the victim’s mother was at work, and continued until May of 2014 when the stepdaughter, then 13, disclosed the abuse to her mother, who contacted police.
The victim testified that for years, she was afraid to disclose the abuse for a number of reasons, including a claim by the defendant that no one would believe her.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives of the Metropolitan Police Department’s Youth Investigations Division, who investigated the case, and the patrol officers who first responded to the scene. He also acknowledged the critical services provided to the victim at the District of Columbia Children’s Advocacy Center, and the specialized medical treatment provided by the team of child abuse experts at the Freddie Mac Child and Adolescent Protection Center at the Children’s National Medical Center. In addition, he commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Elsa Resendiz, David Foster, and Katina Adams-Washington, all of the Victim/Witness Assistance Unit; Criminal Investigator John Marsh; Paralegal Specialist Joyce Arthur; Information Technology Specialists Jeanie Latimore-Brown and Anisha Bhatia; and interns Cristina Stam, Melissa Garcia, and Brittany Raia.
Finally, he commended the work of Assistant U.S. Attorneys John L. Hill and Kenechukwu Okocha, who investigated and prosecuted the case.
15-032
Deli Shop Worker Sentenced for Food Stamp FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr., announced today that Nasser Ali Ghanem, 34 of Buffalo, NY, who was convicted of unauthorized acquisition of food stamp benefits, was sentenced to 10 months in prison by U.S. District Judge William M. Skretny. The defendant was ordered to pay $67,139.00 in restitution to the United States Department of Agriculture.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendant participated in the operation of a deli shop known as Hollywood Nights Prime Shop on Jefferson Avenue in Buffalo. From October 2008 through January 2011, Ghanem purchased food stamp benefits from food stamp recipients for cash at less than their full value. The total loss amount to the United States Department of Agriculture is estimated at $67,139.00.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Department of Agriculture, Office of Inspector General, under the direction of William G. Squires Jr., Special Agent in Charge, Northeast Region.
Dealer for Atlantic City “Dirty Block” Gang Admits Participating in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - An Atlantic City, N.J., man today admitted engaging in a conspiracy to distribute heroin with several members of the “Dirty Block” criminal street gang – several of whom were convicted after a six-week jury trial in January – which used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Ronald Davis, a/k/a “Black,” 29, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute, and to distribute and to possess with intent to distribute within 1,000 feet of public housing, 100 grams or more of heroin.
According to documents filed in this case and statements made in court: Davis acted as a dealer, helping Dirty Block to distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court, in Atlantic City. Davis was arrested on March 26, 2013.
The drug conspiracy in a protected zone charge to which Davis pleaded guilty carries a minimum penalty of one year in prison, a maximum penalty of 40 years in prison, a maximum potential fine of $2 million and a minimum period of supervised release of six years. Sentencing is scheduled for June 5, 2015.
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 Richard M. Frankel; 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 guilty plea.
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 C. 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.
15-070
Defense counsel: Stanley O. King Esq., Woodbury, New Jersey
Dauphin County Man Pleads Guilty in Federal Child Sex Trafficking CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Coy C. Klinger, 37, of Lower Paxton Township, Pennsylvania pleaded guilty to sex trafficking of children before United States District Court Judge John E. Jones, III, in Harrisburg.
According to U.S. Attorney Peter Smith, Klinger was charged in September 2014 for seeking out young girls and women online and having them engage in sexual activity for money with customers in his home in Lower Paxton Township. Klinger took graphic, nude photographs of the girls and women and posted them online in advertisements for prostitution services. The FBI found evidence on electronic devices in Klinger’s home at 5716 Kenwood Avenue, including an Iphone and a laptop computer.
This case was investigated by the Federal Bureau of Investigation, the Lower Paxton Township Police Department and the Dauphin County District Attorney’s Office and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
At sentencing, Klinger faces a mandatory minimum of 10 years imprisonment on the sex trafficking charge and a statutory maximum of life imprisonment. The United States and Klinger have agreed to jointly recommend a sentence of 120 months’ incarceration but the final determination as to Klinger’s sentence will be the decision of the court.A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Dallas Man Sentenced to 300 Months in Federal Prison for Committing Armed Robberies of Dallas-Area BusinessesRead the Press Release
DALLAS — Christopher Washington, 49, who admitted committing the armed robberies of businesses in the Dallas area in 2012-2013, was sentenced today by U.S. District Judge Jane J. Boyle to 300 months (25 years) in federal prison, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
In August 2014, Washington pleaded guilty to two counts of interference with commerce by robbery and one count of carrying and brandishing a firearm during and in relation to a crime of violence.
In September 2014, co-defendant Darren Lewis, 45, was sentenced to 324 months in federal prison. He pleaded guilty to three counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence.
According to documents filed in the case, on October 30, 2012, Lewis entered a Hampton Inn and Suites in Desoto, Texas, inquired about room rates, looked around the lobby, and then left the hotel. Immediately afterwards, Washington entered the lobby and requested a room. He then pulled out a firearm, pointed it at the desk clerk, and demanded cash. Fearing for her life, the clerk complied. Washington then left the hotel and got into a waiting Ford expedition, driven by Lewis.
On November 6, 2012, Washington entered a La Quinta Inn in Cedar Hill, Texas, approached a desk clerk, displayed a shotgun, and while pointing it at the clerk, demanded money. The clerk complied, and Washington left and got into a dark colored car, parked outside of the hotel lobby, driven by Lewis.
On January 28, 2013, Lewis entered a 7-Eleven store in Dallas, grabbed a candy bar from a shelf and then pulled out a silver handgun, pointed it at the clerk, and demanded money from the cash register. In fear for his life, the clerk complied. Lewis then fled the store and drove away in a maroon Ford Expedition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Dallas, Duncanville, Desoto, and Cedar Hill Police Departments investigated the case. Assistant U.S. Attorney Taly Haffar prosecuted.
Couple Indicted in Conspiracy to Distribute CocaineRead the Press Release
U.S. Attorney Kenneth Polite announced that SHANNON DUPLESSIS age 44, of Chalmette, and SABRINA BOURGEOIS, age 33, of Marrero, were charged today in an eight-count Indictment alleging violations of federal drug and firearms laws.
In particular, DUPLESSIS and BOURGEOIS are charged with conspiracy to distribute and possess with intent to distribute over five kilograms of cocaine hydrochloride. The grand jury also indicted DUPLESSIS with possessing multiple firearms in furtherance of his drug trafficking. Both defendants are in custody pending trial.
If convicted of the drug conspiracy, each defendant faces a sentence of ten years to life in prison, a $10,000,000 fine, and at least five years of supervised release after release from prison. If convicted of possessing firearms in furtherance of his drug trafficking, DUPLESSIS faces a term of incarceration of no less than five years, a $250,000 fine, and a maximum of five years of supervised release.
U.S. Attorney Polite reiterated that the 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 Drug Enforcement Administration, the Plaquemines Parish Sheriff’s Office, and the Houston Police Department in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Corpus Christi Man Heads to Prison for Possessing More Than 5 Million Pornographic ImagesRead the Press Release
CORPUS CHRISTI, Texas - Terry Lee Clark, 48, of Corpus Christi, has been ordered to prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson.Clark pleaded guilty Oct. 31, 2015.
Today, U.S. District Judge Marina Garcia Marmolejo, who accepted the guilty plea, handed Clark a sentence of 97 months in federal prison to be immediately followed by a life term of supervised release. He will also be required to register as a sex offender.In July 2014, authorities received an anonymous tip and contacted Clark. He gave them permission to search his residence and they found a computer in his bedroom with child pornography on the screen. The computer and several media storage devices were seized and ultimately revealed several images and videos containing child pornography.
Clark acknowledged downloading images of child pornography onto his computer from several different websites and to having a sexual interest in children.
As part of his plea, Clark admitted to possessing more than five million pornographic images. Of those, approximately 47,000 contained child pornography involving pre-pubescent females, some under the age of 12, engaging in sexually explicit conduct with adult males. He also admitted to possessing more than 17,000 pornographic videos, of which nearly 400 contained child pornography which also involved pre-pubescent females engaging in sexually explicit conduct with adult males.
Clark will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Clark were the result of an investigation conducted by the Corpus Christi Police Department-Internet Crimes Against Children Task Force with the assistance of Homeland Security Investigations.This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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 visitwww.usdoj.gov/psc. For more information about internet safety education, please visitwww.usdoj.gov/psc and click on the tab "resources."
Contador Sentenciado A 18 Meses En Una Prision Federal Por El Robo De $541,500 De Un Club De Caza Y Pesca LocalRead the Press Release
Memphis, Tenn. - Edward L. Stanton III, Fiscal Federal para el Distrito Oeste de Tennessee, ha anunciado hoy que Hazel Cathy Wadley, de Memphis, Tennessee, fue condenada esta mañana por el Juez Federal de Distrito John T. Fowlkes, Jr. para servir 18 meses en una prisión federal en relación a un esquema de fraude electrónico para defraudar al Club de Caza y Pesca Menasha por aproximadamente $541,500. No hay libertad condicional en las prisiones del sistema federal.Wadley se declaró culpable en noviembre de 2014, de un cargo de información criminal acusàndola de fraude electrónico. Según la información criminal, Wadley estaba empleada en Jim Keras Nissan y también realizaba tareas de contabilidad para el Club de Caza y Pesca Menasha. En su audiencia de declaración de culpabilidad Wadley admitió que entre octubre de 2007 y agosto de 2013, robó fondos de Menasha mediante el uso de los fondos de la cuenta bancaria de Menasha con el banco SunTrust para hacer pagos en línea de sus deudas y gastos personales.
Ademàs de la sentencia a prisión, el Juez de Distrito Fowlkes le ordenó a Wadley a cumplir tres años de libertad supervisada y pagar una indemnización por un monto de $301,000 al Club de Caza y Pesca Menasha y $237,000 dólares a Zurich Insurance Group (compañía de seguros de Menasha), para un total de $538,000.
Esta investigación fue realizada por el Servicio Secreto de los Estados Unidos. El Fiscal Federal Auxiliar Carroll L. Andre III quien representó al gobierno.
Version en Inglés
Citrus County Convicted Felon Pleads Guilty to Possession of 140 Firearms and ExplosivesRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Michael Paul Watkins (41, Citrus Springs) today pleaded guilty to possessing firearms and ammunition as a previously convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing hearing has not yet been set.
According to court documents, Watkins was previously convicted in state court for felony offenses, including the handling and fondling of a child under the age of 16 and two escapes. As a convicted felon, he is prohibited from possessing firearms and ammunition under federal law.
In October 2014, law enforcement officers received information that Watkins had been using a third party to illegally acquire firearms and ammunition. On October 21, 2014, agents executed search warrants at his home, business, and nearby property, recovering 140 firearms, including multiple AK-47 style rifles, and thousands of rounds of ammunition. Agents also located several fully assembled pipe bombs and the components to manufacture additional ones.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Citrus County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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 a part of ATF’s Frontline strategy to combat violent crime in our communities.
Charlestown Career Criminal Pleads Guilty to Possessing AmmunitionRead the Press Release
BOSTON – Joseph J. Kennedy, 27, of Charlestown, pleaded guilty to being a previously convicted felon in possession of ammunition. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for June 1, 2015.
On May 7, 2014, Kennedy, who was the subject of an outstanding arrest warrant, was observed driving a vehicle in Charlestown.Kennedy was apprehended and the arresting officers discovered a stolen safe in his vehicle which contained multiple rounds of ammunition.
As an armed career criminal, the defendant is subject to a mandatory minimum sentence of 15 years in prison and no greater than life, five years of supervised release, and a $250,000 fine. 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; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; John Gibbons, U.S. Marshal of the U.S. Marshals Service, District of Massachusetts; and Boston Police Chief William Evans, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Kenneth G. Shine and Mary B. Murrane of Ortiz’s Major Crimes Unit.
Charleston man sentenced for distributing heroinRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Kennele Groom, 36, of Charleston, was sentenced to 58 months in federal prison.
In May 2014, Groom pleaded guilty to distributing heroin in Charleston. On Jan. 14, 2014, officers searched Groom’s residence in the 1200 block of Griffith Drive in Charleston, finding more than $20,000 cash and more than 12 grams of heroin. Another $1,979 cash was found on Groom when he was arrested. Groom admitted that he traveled to Cincinnati to purchase heroin to sell in the Charleston area.
Groom sold heroin to a confidential informant on three separate occasions in Charleston prior to his arrest.
United States District Judge Thomas E. Johnston imposed the sentence.
The case was investigated by Charleston Police Department. Assistant United States Attorney Steven I. Loew handled the prosecution.
The case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Carlsbad Woman Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Deloris Lozuaway, 61, of Carlsbad, N.M., pleaded guilty yesterday afternoon in federal court in Las Cruces, N.M., to being a felon in possession of firearms. The guilty plea was entered without the benefit of a plea agreement.
Lozuaway was arrested on Aug. 11, 2014, in Denver, Colo., by the Bureau of Alcohol, Tobacco, Firearms and Explosives and transferred to New Mexico to face the charges in an indictment alleging that she unlawfully possessed a firearm on Feb. 15, 2013 and on March 7, 2013, in Eddy County, N.M. According to court filings, Lozuaway was prohibited from possessing firearms or ammunition because she previously had been convicted of false pretenses and armed robbery.
Lozuaway entered a guilty plea to two counts of being a felon in possession of a firearm and admitted possessing rifles in Feb. 2013 and March 2013. Lozuaway also acknowledged that she was prohibited from possessing firearms because she was a convicted felon.
Lozuaway has been in federal custody since her arrest and remains detained pending her sentencing hearing, which has yet to be scheduled. At sentencing, Lozuaway faces a statutory maximum sentence of ten years in federal prison.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Californian Sentenced to 41 Months in Prison for Failing to Update his Sex Offender RegistrationRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a California man was sentenced to 41 months in prison for failing to register as a sex offender after traveling to Alexandria.
Tyrone Bradshaw, 47, of Los Angeles, Calif., was sentenced by U.S. District Judge Dee D. Drell for one count of failure to register as a sex offender. He was also sentenced to 17 years of supervised release. He will begin serving the sentence after serving the remainder of a 32-month prison term in California for a previous failure to register charge. According to evidence presented at the November 25, 2014 guilty plea, Bradshaw traveled by bus to Alexandria on August 1, 2012. He obtained a state identification card on August 3, 2012 and listed his address as Lake Charles, La. He did not include his sex offender status on the identification as required by Louisiana state law. Alexandria police later arrested Bradshaw. The defendant previously pleaded guilty in November of 1985 to state charges in California for kidnapping, forcible rape, and robbery of a female. He was released in 1994.
The U.S. Marshals Service and the Alexandria Police Department conducted the investigation. Assistant U.S. Attorney F. Michael O’Mara prosecuted the case.
California Financier Charged in Alleged Ponzi SchemeRead the Press Release
Former CEO and Corporate Counsel of Financial Services Marketing Company Previously Pleaded Guilty
A California man and purported billionaire financier was taken into federal custody today for his role in an alleged Ponzi scheme in which investors lost $2.5 million, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Inspector in Charge Gary Barksdale of the U.S. Postal Inspection Service’s Criminal Investigations Group.
Kenneth Brewington, 50, of Corona, California, was indicted on Feb. 24, 2015, by a federal grand jury in the District of Colorado for conspiracy to commit wire and mail fraud, mail fraud and six counts of wire fraud.
According to allegations in the indictment, from September 2009 until 2011, Brewington and his co-conspirators sold promissory notes to investors through a financial services marketing company based in Denver called Compass Financial Solutions (CFS). The indictment alleges that Brewington and his co-conspirators falsely represented to investors that Brewington held millions of Euros in overseas bank accounts, and that the proceeds raised from investors would be used to obtain the release of his overseas funds. To conceal the scheme, Brewington and his co-conspirators allegedly had investors wire their funds to an attorney trust account. The funds from that account, however, were then allegedly sent to Brewington and his co-conspirators. Brewington and his co-conspirators allegedly used the investors’ money for their own personal benefit.
The former corporate counsel for CFS, William E. Dawn, 77, of Denver, and the former CEO of CFS, Brian G. Elrod, 58, of Lakewood, Colorado, previously pleaded guilty for their roles in the scheme. Sentencing hearings are scheduled for May 29, 2015, and May 22, 2015, respectively.
The charges contained in an indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case was investigated by the U.S. Postal Inspection Service, and is being prosecuted by Trial Attorneys Henry P. Van Dyck and Jennifer G. Ballantyne of the Criminal Division’s Fraud Section. The Securities and Exchange Commission has provided substantial assistance in this matter.
Brockport Man Pleads Guilty to Mail Fraud and Forging Treasury ChecksRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Steven Ray, 49 of Brockport, NY, pleaded guilty to one count of mail fraud and one count of forging treasury checks before U.S. Magistrate Judge Marian W. Payson. The mail fraud charge carries a maximum penalty of 20 years in prison, a fine of up to $250,000, or both. Forging treasury checks carries a maximum penalty of 10 years in prison, a fine of up to $250,000, or both.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that Ray admitted to cashing more than 120 forged United States Treasury Checks worth more than $400,000. The checks were stolen from the New York City Area as well as from other parts of the United States. Ray would get the stolen checks mailed to him via the United States Postal Service at his Brockport home.
A review of United States Postal Service records confirmed that between March 2013 and August 2013, at least 20 Express Mail pieces addressed from Lithonia, GA had been delivered to Ray's Brockport residence. The defendant told investigators that he had the packages addressed to his adult daughter, claiming that someone needed to sign for them during the day, however, Postal records showed that none of the Express Mail pieces involved actually required a signature for delivery.
During the investigation, federal agents identified at least 13 area bank accounts controlled by the defendant under various names. The defendant would take the stolen Treasury Checks he received by mail and then deposit them across these accounts. Many of the checks belonged to people who received Social Security payments, tax refunds, and other money drawn from the United States Treasury to help the intended recipients.
One stolen $33,000 check, deposited by Ray in May 2013, was meant as a retirement disbursement for a woman in California. When questioned by investigators, the defendant claimed that he got the check as a down payment for the sale of some local property to a woman he had never met who came into his store one day. Ray told the bank a different story for why he was depositing this check, and claimed that he was friends with the woman named on the check and claimed it was for the purchase of a different piece of property than that which he told investigators. However, when investigators tracked the victim down and interviewed her, she denied knowing the defendant or any of his related businesses. She told law enforcement that she never received her check, never endorsed her check, never deposited her check into the defendant’s account, and never authorized anyone else to do so. She did not buy any property from the defendant or anyone else in Western New York.
As a result of the defendant’s scheme to defraud, Ray obtained more than $405,000 to which he was not otherwise entitled. During the investigation, federal agents were able to recover almost $100,000 in stolen funds, which was returned to the rightful recipients.
The plea is the culmination of an investigation on the part of Inspectors from the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector In Charge of the Boston Division, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the Direction of Special Agent in Charge of the New York Field Office, Shantelle P. Kitchen.
Sentencing is scheduled for May 26, 2015 at 10:00 a.m. before U.S. District Court Judge David G. Larimer.
Bridgeport Man Sentenced to 17 Years in Federal Prison for Heading Drug Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RONELL HANKS, also known as “Biz” and “Ace,” 25, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 204 months of imprisonment, followed by five years of supervised release, for heading a large Bridgeport-based narcotics trafficking ring.
According to court documents and statements made in court, in January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force began an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. The investigation revealed that HANKS headed an organization that sold heroin, cocaine and crack cocaine 24-hours a day, seven days a week.
During the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition.
Investigators seized a firearm, which had been reported stolen, from HANKS’ residence, and also a KelTec EC372 assault-style firearm and ammunition that HANKS had provided to another individual for safe keeping on his behalf.
On December 18, 2013, a grand jury in Bridgeport returned an indictment charging HANKS and 13 other individuals with narcotics and firearms trafficking offenses.
HANKS has been detained since his arrest on December 5, 2013. On August 21, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 500 grams or more of cocaine.
HANKS was ordered to forfeit three vehicles, approximately $80,000 in jewelry and $72,000 in cash.
HANKS’ criminal history includes multiple felony convictions.This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, the Trumbull Police Department and the Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
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(203) 821-3722 [email protected]Branson EMT, Joplin Couple Among Those Indicted for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Branson, Mo., EMT and a Joplin, Mo., couple are among five persons indicted by a federal grand jury yesterday in four separate and unrelated cases related to the sexual exploitation of children.
“Protecting the most vulnerable members of our society is a top priority of the Department of Justice,” Dickinson said. “We are committed to protecting our children from sexual predators and bringing their abusers to justice. Exploiting and abusing a child to produce pornography – as charged in each of these indictments – carries a tough mandatory minimum sentence of 15 years in federal prison without parole.”
USA v. Dickerson
Nicholas James Dickerson, 30, of Branson, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo. Dickerson is employed by the Western Taney County Fire Protection District as an EMT and volunteer firefighter. Dickerson was residing in living quarters at a Branson fire station at the time of the alleged offense.
The federal indictment alleges that Dickerson used a minor to produce child pornography on Feb. 7, 2015. The indictment replaces a federal criminal complaint that was filed against Dickerson on Feb. 19, 2015.
According to an affidavit filed in support of the original criminal complaint, Dickerson sold his iPhone to a Nixa, Mo., business on Feb. 9, 2015. An employee of the business noticed Dickerson deleting images or files from the phone while standing at the counter, the affidavit says, and after the transaction was complete the employee noticed that the “deleted pictures folder” was still present on the screen. The employee saw an image that appeared to be child pornography and alerted the store owner, who contacted law enforcement.
Investigators identified the nine-year-old victim in the image. Dickerson told investigators that he took the photo while sexually abusing the child victim in his living quarters at the fire station, the affidavit says, and that he sexually abused the victim on multiple occasions. Dickerson also told investigators he had shown pornography to the child victim.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI.
USA v. Britten
Ernest Britten, 36, of Joplin, Mo., and his ex-wife, Kendra Britten, 33, of Miami, Okla., formerly of Joplin, were charged in a two-count indictment returned by a federal grand jury in Springfield, Mo.
The federal indictment alleges that Ernest and Kendra Britten used a minor to produce child pornography from June 23, 2005, to July 2, 2012. The indictment also charges Ernest and Kendra Britten with receiving child pornography over the Internet from Dec. 27, 2010, to Nov. 10, 2011.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Missouri State Highway Patrol.
USA v. Peterson
Michael Douglas Peterson, 32, of Morristown, Tenn., formerly of Barry County, Mo., was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Peterson on Jan. 23, 2015.
The federal indictment alleges that Peterson used a minor victim to produce child pornography from March 1, 2014, to Jan. 21, 2015. Peterson is also charged with using his cell phone during that time to entice the minor, who was younger than 17, to engage in illicit sexual behavior.
According to an affidavit filed in support of the original criminal complaint, Peterson was exchanging nude photos via cell phone and engaging in sexual activity with the 15-year-old victim in Cassville, Mo. A state arrest warrant was issued for Peterson, but he could not be located.
The victim’s mother took her to live in Tennessee. Federal agents later located Peterson in Morristown, Tenn., where he was living with the child victim and her mother. Peterson was arrested and remains in federal custody.
Peterson told federal agents the child victim’s mother allowed him to move into their home and was aware that he and the child victim engaged in sexual intercourse. The child victim, the affidavit says, is pregnant with Peterson’s child. She was taken into protective custody and placed in foster care.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the FBI.
USA v. Hall
Michael Roger Hall, 19, of Kenton, Ohio, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Hall on Friday, Feb. 20, 2015.
The federal indictment alleges that Hall used a minor to produce child pornography from Dec. 7 to 9, 2014. The indictment also alleges that Hall communicated via the Internet to entice a minor victim to engage in illicit sexual behavior.
According to an affidavit filed in support of the original criminal complaint, Hall was exchanging nude images over the Internet with a 9-year-old victim in Ava, Mo. Hall and the child victim, who began communicating through an application on her Kindle Fire, allegedly discussed meeting for sexual contact.
A law enforcement officer, portraying the identity of the child victim, began communicating with Hall. Hall was arrested on Friday, Feb. 20, 2015, and remains in federal custody.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Ava, Mo., Police Department, the Southwest Missouri Cyber Crime Task Force and the FBI.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Bookkeeper Sentenced to 18 Months in Federal Prison for Theft of $541,500 from Local Hunting and Fishing ClubRead the Press Release
Memphis, Tenn. – Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced today that Hazel Cathy Wadley, of Memphis, Tennessee, was sentenced this morning by U.S. District Judge John T. Fowlkes, Jr. to serve 18 months in federal prison in connection with a wire fraud scheme to defraud Menasha Hunting and Fishing Club of approximately $541,500. There is no parole in the federal prison system.
Wadley pled guilty in November, 2014, to a one-count criminal information charging her with wire fraud. According to the criminal information, Wadley was employed at Jim Keras Nissan and also performed bookkeeping duties for the Menasha Hunting and Fishing Club. At her guilty plea hearing Wadley admitted that between October 2007 and August 2013, she stole funds from Menasha by using funds in Menasha’s bank account at Suntrust Bank to make online payments of her personal debts and expenses.
In addition to the prison sentence, U.S. District Judge Fowlkes ordered Wadley to serve three years of supervised release and to pay restitution in the amount of $301,000 to Menasha Hunting and Fishing Club and $237,000 to Zurich Insurance Group (Menasha’s insurance company), for a total of $538,000.
This investigation was conducted by the United States Secret Service. Assistant U.S. Attorney Carroll L. Andre III represented the government.
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Arizona Executive Arrested in Foreign Currency Trading ScamRead the Press Release
BOSTON – An Arizona man was charged in an indictment unsealed today with defrauding numerous victims who invested in his foreign currency trading company.
David Prescott, 44, formerly of Boston, was charged with 16 counts of wire fraud. Prescott, who previously went by the name of David Weeks, was arrested today in Arizona.
According to the indictment, David Prescott was the owner and President of Cambridge Currency Partners, LLC (CCP), which was purportedly engaged in the business of buying and selling foreign currency. Prescott falsely represented to investors that their funds would be invested in CCP and used for business purposes, and that the investors would receive a monthly return. In fact, Prescott used the majority of the funds on personal expenses and repayments to other investors.
As part of the scheme, Prescott allegedly solicited investors by promising monthly returns ranging from one to six percent with little to no risk to the underlying principal. The indictment alleges that Prescott made false representations to the investors regarding the balances in their accounts and made payments to them that purported to be interest, but that, in fact, simply consisted of money from other investors. As a result, Prescott was allegedly able to secure multiple investments from the same investors. On one occasion, Prescott allegedly emailed an investor and promised to increase the interest paid on her previous investments if she were willing to invest additional funds, even though Prescott had already spent the majority of her previous investments on personal expenses and repayments to other investors.
The charging statute provides a maximum sentence of 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gain or loss, and restitution. 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 Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Alexander H. Berlin of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Allentown Man Sentenced to Prison for Federal Cocaine TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Torres, age 25, of Allentown, Lehigh County was sentenced today, in federal court in Scranton by Senior United States District Judge Edwin M. Kosik, to serve 78 months in prison on the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter Smith, Torres previously pleaded guilty to distributing crack cocaine and powder cocaine in the Carbon County area between January 2011 and December 2012.
In addition to the prison term, Senior Judge Kosik also ordered that Torres be supervised by a probation officer for four years following his release from prison.
Torres was indicted by a federal grand jury on October 30, 2012, after an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
Torres is the seventh and final defendant to be sentenced in connection with the investigation. Previously, the following defendants, all from Carbon Country, were sentenced:
- Bonnie Vosburgh, age 22, of Nesquehoning, sentenced to 60 months in prison on the charge of conspiracy to distribute cocaine; - Victoria Ann Argott, age 34, of Lansford, sentenced to 40 months in prison on the charge of conspiracy to distribute cocaine; - Alexander “Butch” Sommers, age 37, of Summit Hill, sentenced to 37 months in prison on the charge of aiding and abetting the distribution of cocaine; - Jordan Bachert, age 29, of Lansford, sentenced to 30 months in prison on the charge of being an unlawful user of controlled substances in possession of firearms; - Joseph Revell, age 21, of Nesquehoning, sentenced to 30 months in prison on the charge of distributing cocaine; and
- Ceres Lozada, age 27, of Nesquehoning, sentenced to 21 months in prison on the charge of conspiracy to distribute cocaine.The cases were prosecuted by Assistant United States Attorney Robert J. O’Hara.
25 February 2015
Youngstown Man Charged with Identity TheftRead the Press Release
Aa federal grand returned a two-count indictment charging Ricardo Garcia-Baltazar, aka Richard Molina, 37, of Youngstown, with representing himself as a U.S. citizen when he is not and with aggravated identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 of the indictment alleges that on or about January 17, 2013, Garcia-Baltazar, a citizen of Mexico and an alien in the United States, falsely represented himself to be a citizen of the United States.
Count 2 of the indictment alleges that between on or about January 17, 2013 and March 8, 2013, Garcia-Baltazar transferred, possessed and used, without lawful authority, identification of another person, knowing that the identification belonged to another person.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Department of Homeland Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Woman Pleads Guilty to Bankruptcy Fraud, Bank FraudRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Edwige Caroline Angono-Ndongo, 42, of Mobile, Alabama pleaded guilty to two federal fraud charges. Angono-Ndongo falsified the bankruptcy Schedules of Assets and Liabilities she filed in 2010 in her bankruptcy case in U.S. Bankruptcy Court for the Southern District of Alabama by failing to disclose some of her property, including bank and securities accounts. She also engaged in a credit card bankruptcy "bust out" scheme. Ndongo defrauded Bank of America with an electronic "check–kiting" scheme, using electronic transfers supported by insufficient funds, similar to "rubber checks", from her credit union to make it appear that she was making payments on her credit card accounts at the bank. By making bogus payments to the bank, she caused the bank to allow her to charge thousands of dollars in purchases. She then filed bankruptcy and discharged the debts to the bank. Angono-Ndongo faces a maximum penalty of 20 years in prison for the bankruptcy fraud charge and 30 years in prison for the bank fraud charge. Her sentencing is scheduled for June 8, 2015 before U.S. District Court Judge Callie V.S. Granade.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Charles Baer, Gregory Bordenkircher, and Sinan Kalayoglu. United States Attorney Kenyen R. Brown stated that the prosecution shows that the Department of Justice understands its duty to work to keep the bankruptcy system clean and to protect the banking system from fraud.
West Virginia couple sentenced for defrauding elderly victim to purchase beach houseRead the Press Release
WHEELING, WEST VIRGINIA – A Wetzel County couple was sentenced in federal court today after they stole nearly $400,000.00 from a 90-year-old victim to purchase a vacation home in the Outer Banks, United States Attorney William J. Ihlenfeld, II, announced.
In October 2014, a jury found Timothy Summers, 67, and Lea Ann Summers, 52, of Proctor, West Virginia, guilty of one count of “Conspiracy to Commit Mail Fraud” and one count of “Securities Fraud.” The jury further found Lea Ann Summers guilty of four counts of “Mail Fraud.” The jury further found Timothy Summers guilty of one count of “Interstate Transportation of Stolen Property.” Timothy and Lea Ann Summers were each sentenced today to 24 months in prison.
Evidence presented at trial showed that the couple collaborated to liquidate a significant portion of the victim’s investment holdings in PPG Industries stock. In late 2013, Lea Ann Summers called the stock holding company, Computershare, impersonating the victim, and sold 2,175 shares of PPG Industries stock.
Mrs. Summers then arranged for the proceeds of the sale, approximately $397,030.15, to be sent to herself rather than the victim. Timothy Summers deposited the proceeds and transferred the money into a bank account which he shared only with his wife. The couple then travelled to North Carolina and purchased a beach house in the Outer Banks for $243,173.61. As part of today’s sentence, the couple was also ordered to pay restitution in the amount of $397,030.15.
Assistant U.S. Attorneys David Perri and Michael Stein prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the investigation.
Chief U.S. District Judge John Preston Bailey presided.
United States Recovers One Million Dollars in Connection with False Claims Act Allegations Relating to Skilled Therapy Services and Durable Medical EquipmentRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Agility Health, LLC (“Agility Health”) and Oceana County Medical Care Facility (“OCMCF”) have entered into agreements to pay the federal government a total of $1,000,000 to resolve allegations that they submitted false claims to Medicare, or caused false claims to be submitted to Medicare, in violation of the federal False Claims Act. Agility Health, a Grand Rapids-based company that manages or provides health care services at inpatient and outpatient sites in twenty states, will pay a settlement amount of $850,000. OCMCF, a county-owned facility that provides inpatient and outpatient rehabilitation services in Hart, Michigan, will pay a settlement amount of $150,000. Neither Agility Health nor OCMCF admitted liability as part of their settlements.
Beginning in 2008, Agility Health managed OCMCF’s therapy department, provided therapy staffing services at OCMCF, and assisted OCMCF in preparing insurance claims for therapy services. The settlements announced today resolve allegations that between January 1, 2009 and December 31, 2013, Agility Health knowingly caused false claims to be submitted to Medicare, and OCMCF knowingly submitted false claims to Medicare, for inpatient skilled therapy services that were not provided, that were upcoded, and that were medically unnecessary. According to the United States, Agility Health and OCMCF billed Medicare or caused Medicare to be billed for, among other things, services that were purportedly rendered to patients who were mentally and physically unable to participate in therapy programs.
The settlement with Agility Health also resolves allegations that during its tenure at OCMCF, Agility Health caused false claims for durable medical equipment to be submitted to Medicare. According to the United States, an Agility Health employee at OCMCF improperly disclosed protected health information to an outside vendor in 2011 in violation of the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”). The vendor used that information to bill Medicare for unnecessary medical equipment that some patients never received.
This case resulted from a civil lawsuit filed by three whistleblowers who worked at OCMCF. The lawsuit, known as a qui tam action, was filed under the False Claims Act, which allows private whistleblowers to bring lawsuits on behalf of the United States and receive a share of any recoveries. In this case, the Government intervened in the whistleblowers’ lawsuit. The whistleblowers will collectively receive over $200,000 of the settlement proceeds, as well as additional amounts for attorney’s fees and costs. The qui tam case is docketed as United States, et al., ex rel. Jahn, et al. v. Agility Health, Inc., et al., No. 1:12-cv-449 (W.D. Mich.).
“Patients in skilled nursing facilities should receive therapy based on their clinical needs, not the financial incentives of the companies and facilities that provide their care,” said U.S. Attorney Miles. “Patients also trust providers to protect their sensitive personal information as required by law. My office will use all available options to hold providers accountable when they improperly disclose protected health information.”
This case was investigated by the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Adam B. Townshend represented the United States.
END
Uniontown Man Indicted on Child Pornography Production and Possession ChargesRead the Press Release
PITTSBURGH - A resident of Fayette County has been indicted by a federal grand jury in Pittsburgh on charges of production and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The four-count indictment named David Kinteay Carson, 37, as the sole defendant.
According to the indictment, on or about Sept. 26, 2014, Oct. 18, 2014, and Dec. 13, 2014, Carson produced visual depictions of the sexual exploitation of two minors. The indictment further alleges that on or about Dec. 18, 2014, Carson knowingly possessed images in computer graphic or digital files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a mandatory minimum of 15 years imprisonment for each count of production of child pornography, a maximum sentence of 10 years imprisonment for possessing child pornography, and a fine of $750,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Uniontown City Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
U.S. Magistrate Judge Orders Colorado Springs Bombing Suspect to Be Held Without BondRead the Press Release
DENVER – U.S. Magistrate Judge Michael J. Watanabe today ordered Thaddeus Cheyenne Murphy, age 44, of Colorado Springs, Colorado, to be held in custody without bond pending a resolution of his case. The U.S. Magistrate Judge ordered Murphy to be held because he was deemed both a danger to the community and a risk of flight. The U.S. District Court will next schedule a serious of hearing dates, that should be available later in the week.
Two Men Plead Guilty to Offenses Involving the Theft, Sale, and Interstate Transportation of Semi-Conductor Grade Polysilicon from A Local PlantRead the Press Release
Kenyen R. Brown, United States Attorney for the Southern District of Alabama announced that Willie Richard Short, age 62, a resident of Loxley, Alabama, and George J. Welford, age 61, a resident of Gautier, Mississippi, entered guilty pleas today before United States District Judge Kristi K. Dubose to two federal offenses: conspiracy to transport stolen goods in interstate and foreign commerce, and conspiracy to launder the proceeds from the sale of the stolen polysilicon.
Short and Welford admitted in open court that in early-2009 they began stealing high-purity, semi-conductor grade polysilicon from their employer, a manufacturing plant located in Theodore, Alabama, and continued doing so until January 2014. Short and Welford hid the stolen polysilicon in their lunch boxes, back packs, and lockers, and transported the stolen goods in their personal vehicles.
Short and Welford searched the internet for a buyer for the stolen goods, and used the fake names "William Smith" and "Butch Cassidy" to communicate with the buyer. Short and Welford agreed to sell the stolen polysilicon to this buyer on the condition that all payments for the loads of polysilicon had to be made in cash and in person. The rendezvous sites for the
delivery of the cash payments were located in Mobile, Alabama, Pensacola, Florida, Shreveport, Louisiana, and elsewhere.
Short admitted that he conspired to steal, sell, and transport in interstate commerce at least 42,000 kilograms (42 metric tons) of polysilicon, and Welford admitted that he conspired to steal, sell, and transport in interstate commerce at least 29,000 kilograms (29 metric tons) of polysilicon. The total amount of stolen polysilicon had a market value of approximately $2.6 million.
This case was investigated by the Department of Homeland Security and the Criminal Investigation Division of the Internal Revenue Service, and is being prosecuted by Donna B. Dobbins and Christopher J. Bodnar, Assistant United States Attorneys in the United States Attorney=s Office for the Southern District of Alabama.
Two Connecticut Men Plead Guilty to Defrauding EmployersRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JASON TORRANCE, 43, of East Haddam, and ADAM MEYERS, 43, of Southbury, pleaded guilty on February 23 in Bridgeport federal court to engaging in a fraud scheme against their respective employers.
According to court documents and statements made in court, between approximately March 2008 and August 2012, TORRANCE and MEYERS devised a scheme to defraud their employers by arranging for payment on goods that never shipped and instead diverting those payments to themselves. TORRANCE worked out of the New Haven branch of a New Jersey-based electrical and industrial supply company (“Distributor-1”), and MEYERS was a project manager for a New Britain-based electrical subcontractor (“Contractor”) that frequently purchased supplies from Distributor-1. A co-conspirator (“CC-2”) operated a smaller distributor (“Distributor-2”) based in Cheshire.
As part of the scheme, MEYERS identified to TORRANCE projects on which he believed the profit margin for Contractor would permit them to divert excess profits to themselves without Contractor becoming aware. MEYERS would submit a purchase order for materials to TORRANCE. TORRANCE then submitted a purchase order to CC-2 for the goods listed on the purchase order sent by MEYERS. CC-2 then submitted an invoice to Distributor-1 for the materials listed on the purchase order, and Distributor-1 paid the invoice by mailing a check to Distributor-2. Distributor-1 then invoiced Contractor for the goods that were on the purchase order and Contractor issued a check to Distributor-1. CC-2 then hand-delivered a business check to TORRANCE for approximately 90 percent of the money that had been paid by Distributor-1 to Distributor-2, and CC-2 retained the remaining 10 percent as his share of the proceeds from the scheme. TORRANCE then paid out a portion of the proceeds of the scheme to MEYERS.
At no time did any product on the purchase orders actually ship to the customer.
The victim companies lost more than $600,000 as a result of this scheme.
TORRANCE and MEYERS each pleaded guilty to one count of conspiracy to commit mail fraud, which carries a maximum term of imprisonment of 20 years. They are scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on May 18, 2015.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney David E. Novick.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Tulsa Man Sentenced to over 17 Years in Prison for Distributing Child PornographyRead the Press Release
TULSA, Okla.—Kenneth R. Morain, 63, of Tulsa, was sentenced by United States District Court Judge James H. Payne to 210 months in prison, to be followed by lifetime supervised release, for possessing, receiving, and distributing more than 33,000 image and video files of child pornography, announced United States Attorney Danny C. Williams Sr., for the Northern District of Oklahoma. Morain was also ordered to pay $33,000 in restitution to the victims. He was charged by a grand jury on February 3, 2014, and he pleaded guilty on July 17, 2014.
“Exploiting and abusing the most vulnerable in our community is a heinous crime,” said U.S. Attorney Williams. “We will work with our law enforcement partners to track down those who exploit and abuse children and prosecute those criminals to the fullest extent of the law. The defendant will now face the consequences of his crimes behind bars.”
Morain used free Wi-Fi internet services at various businesses across Tulsa to access and share child pornography via the Peer-to-Peer (P2P) file sharing network called ARES. He would view and download child pornography while seated in his vehicle parked in a business’s parking lot. During the investigation more than 33,000 images and video files of child pornography were discovered on Morain’s seized computer and removable flash drives.
The case was a joint investigation by the FBI and the Tulsa Police Department; prosecution was handled by Assistant United States Attorney Jeffrey A. Gallant.
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.projectsafechildhood.gov.
(U.S. vs. Kenneth R. Morain)
Trivillian's Pharmacy, owner plead guilty to federal health care and drug crimesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Paula Butterfield, owner and pharmacist-in-charge of Trivillian’s Pharmacy, a long-standing Kanawha City retail and compounding pharmacy, pleaded guilty to making a false statement in a healthcare matter. Butterfield also pleaded guilty on behalf of Trivillian’s to one count of health care fraud and one count of misbranding drugs.
Butterfield admitted that Trivillian’s defrauded Medicare and Medicaid by dispensing less expensive compounded drugs while billing for more expensive brand name drugs, dispensing generic drugs while billing for more expensive brand name drugs, billing for drugs that were never dispensed or were expired and dispensing drugs that were compounded outside of a safe and clean environment. The pharmacy also admitted to dispensing compounded drugs under labels and identification numbers associated with brand name drugs.
Butterfield, a Medicare beneficiary, pleaded guilty to submitting false information claims to Medicare on her own behalf, seeking payment for drugs that were never dispensed to her.
Trivillian’s faces a fine of up to $1 million or twice the gross financial gain or twice the gross financial loss resulting from the pharmacy’s conduct, whichever is greater; not less than two years nor more than 10 years of probation; a mandatory special assessment of $800; and an order of restitution.
Butterfield faces up to five years in federal prison; a fine of $250,000, or twice the gross financial gain or twice the gross financial loss resulting from her conduct, whichever is greater; three years of supervised release; a mandatory special assessment of $100; and an order of restitution.
Trivillian’s and Butterfield are scheduled to be sentenced on May 28, 2015.
Goodwin also announced that his office reached a civil settlement with Trivillian’s and Butterfield, recovering $1.1. million on behalf of Medicare and West Virginia Medicaid. The settlement represents more than three times the loss suffered by Medicare and Medicaid.
“Cheating Medicare and Medicaid is really cheating the American taxpayer,” Goodwin said. “Thanks to these prosecutions and this settlement, money that was taken from the taxpayers by fraud can now be used to provide health care to the many people who depend on these programs.”
The investigation is being conducted by United States Health and Human Services, the United States Food and Drug Administration Office of Criminal Investigation, West Virginia State Police, West Virginia Medicaid Fraud Control Unit and Drug Enforcement Administration. Assistant United States Attorney Eumi Choi is handling the prosecution.
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Towson Man Sentenced to 42 Months in Prison for Possessing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Nicholas Haxall Johnson, age 24, of Towson, Maryland, today to 42 months in prison followed by 20 years of supervised release for possessing child pornography. Judge Quarles ordered that upon his release from prison, Johnson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, in September 2013, a Baltimore County Police detective who was using a computer observed that Johnson had files containing child pornography available for download on the internet. The investigator downloaded approximately 150 image files, many of which contained child pornography.
On October 4, 2013, law enforcement officers executed a search warrant at Johnson’s residence. They seized Johnson’s laptop and external hard drive which contained more than 250,000 images, the majority of which depicted minors engaged in sexually explicit conduct. Hundreds of prescription pills, including Adderall and Ritalin pills, were recovered from a safe, along with a glass pipe, plastic baggies, drugs and three grinders.
Further investigation of Johnson’s computer revealed that he created an online persona of a 15-year old male which he used to communicate with 13 and 14-year old girls. Johnson discussed sexual topics with the young girls and encouraged them to send him nude photos of themselves.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Three convicted of oxycodone traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Timothy Charles Burnette, 45, Erik Jones, 27, both of Morgantown, West Virginia, and Terri Shuttlesworth, 24, of Fairmont, West Virginia were convicted in federal court today for their role in a Pennsylvania to West Virginia prescription painkiller distribution operation, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the West Virginia State Police Bureau of Criminal Investigation revealed that each of the three defendants participated in a drug distribution operation in which prescription painkillers were transported across state lines from Philadelphia, Pennsylvania to Morgantown, West Virginia for redistribution and sale.
Jones and Shuttlesworth admitted that they sold oxycodone in Monongalia County, West Virginia in late 2013 and early 2014. They each pled guilty today to one count of “Distribution of Oxycodone.” They each face up to 20 years in prison and a fine of up to $1,000,000.00.
Burnette admitted that in June 2014, he utilized a telephone system to make arrangements to purchase a quantity of oxycodone pills. He pled guilty today to one count of “Use of a Telephone to Facilitate the Distribution of Oxycodone.” He faces up to four years in prison and a fine of up to $250,000.00.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Zelda Wesley is prosecuting the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.Three Brooklyn, New York, Residents Charged with Attempt and Conspiracy to Provide Material Support to ISILRead the Press Release
Two Defendants Allegedly Planned to Travel to Syria in Order to Join ISIL;
One Defendant Arrested While Boarding a Flight to Turkey
Earlier today, a criminal complaint was unsealed in federal court in Brooklyn charging Abdurasul Hasanovich Juraboev, Akhror Saidakhmetov, and Abror Habibov with attempt and conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. The initial appearances of Juraboev and Saidakhmetov are scheduled for later today before United States Magistrate Judge Lois Bloom at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York. Habibov’s initial appearance will be held later today at the U.S. Courthouse, 300 North Hogan Street, Jacksonville, Florida.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
As alleged in the complaint, Juraboev first came to the attention of law enforcement in August 2014 after he made a posting on an Uzbek-language website that propagates ISIL’s ideology. The investigation subsequently revealed that Juraboev and Saidakhmetov devised a plan to travel to Turkey and then to Syria for the purpose of waging jihad on behalf of ISIL. Saidakhmetov, a resident of Brooklyn and a citizen of Kazakhstan, was arrested early this morning at John F. Kennedy International Airport, where he was attempting to board a flight to Istanbul, Turkey. Juraboev, a resident of Brooklyn and a citizen of Uzbekistan, had previously purchased a plane ticket to travel from New York to Istanbul and was scheduled to leave the United States next month. Habibov, a resident of Brooklyn and a citizen of Uzbekistan, helped fund Saidakhmetov’s efforts to join ISIL.
As alleged in the complaint, Juraboev was also prepared to engage in an act of terrorism in the United States if ordered to do so by ISIL, and Saidakhmetov intended to commit such an act if unable to travel abroad to join ISIL. In the August 2014 posting on the website that propagates ISIL’s ideology, Juraboev offered to kill the President of the United States if ordered to do so by ISIL. More recently, Saidakhmetov expressed his intent to buy a machine gun and shoot police officers and FBI agents if thwarted in his plan to join ISIL in Syria.
“The flow of foreign fighters to Syria represents an evolving threat to our country and to our allies,” stated United States Attorney Lynch. “As alleged in the complaint, two of the defendants in this case sought to travel to Syria to join ISIL but were also prepared to wage violent jihad here in the United States. A third defendant allegedly provided financial assistance and encouragement. We will vigorously prosecute those who attempt to travel to Syria to wage violent jihad on behalf of ISIL and those who support them. Anyone who threatens our citizens and our allies, here or abroad, will face the full force of American justice.” Ms. Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state, and local agencies from the region.
“The charges against Juraboev, Saidakhmetov and Habibov reflect our commitment to finding those who wish to provide material support to ISIL, as well as those committed to fighting on behalf of ISIL, either at home or abroad, and preventing them from doing so,” said Assistant Attorney General Carlin. “The National Security Division will continue to work to stem the flow of foreign fighters and financial resources to terrorist organizations operating in Iraq and Syria. I would like to commend all those whose tireless efforts helped bring these charges.”
“As alleged, the defendants looked to join the Islamic State of Iraq and the Levant by flying to Turkey in a vain attempt to evade detection. And one of the defendants was prepared to commit acts of terror here—in America—if he could not travel, to include killing FBI agents. The defendants violated the true tenets of their faith in pursuit of their radical, violent agenda. We rely on help from the community, the public, and religious leaders to be mindful of those who could be radicalized. We cannot do this alone,” said FBI Assistant Director-in-Charge Rodriguez.
“ISIL calls on its followers to come fight for the terrorist organization in Syria,” said Police Commissioner Bratton, “and in messages to followers outside Syria, ISIL has called on them to attack police, intelligence officers, or the military in their home countries including the United States. By pledging allegiance to ISIL, these defendants allegedly conspired to fight for a designated foreign terrorist organization, either in Syria or even New York.” Commissioner Bratton commended the work of the detectives and agents of the JTTF and the guidance of the U.S. Attorney for the Eastern District of New York throughout the investigation.
If convicted, each defendant faces a maximum sentence of 15 years in prison. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Alexander Solomon, Douglas M. Pravda, and Amanda Hector, with assistance provided by Trial Attorney Danya Atiyeh of the Justice Department’s Counterterrorism Section and the United States Attorney’s Office for the Middle District of Florida.
The Defendants:
ABDURASUL HASANOVICH JURABOEV
Age: 24
Nationality: Uzbeki
AKHROR SAIDAKHMETOV
Age: 19
Nationality: Kazakh
ABROR HABIBOV
Age: 30
Nationality: Uzbeki
E.D.N.Y. Docket No. 15-M-0172
Three Brooklyn Residents Charged with Attempt and Conspiracy to Provide Material Support to ISILRead the Press Release
Earlier today, a criminal complaint was unsealed in federal court in Brooklyn charging Abdurasul Hasanovich Juraboev, Akhror Saidakhmetov, and Abror Habibov with attempt and conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. The initial appearances of Juraboev and Saidakhmetov are scheduled for later today before United States Magistrate Judge Lois Bloom at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York. Habibov’s initial appearance will be held later today at the U.S. Courthouse, 300 North Hogan Street, Jacksonville, Florida.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
As alleged in the complaint, Juraboev first came to the attention of law enforcement in August 2014 after he made a posting on an Uzbek-language website that propagates ISIL’s ideology. The investigation subsequently revealed that Juraboev and Saidakhmetov devised a plan to travel to Turkey and then to Syria for the purpose of waging jihad on behalf of ISIL. Saidakhmetov, a resident of Brooklyn and a citizen of Kazakhstan, was arrested early this morning at John F. Kennedy International Airport, where he was attempting to board a flight to Istanbul, Turkey. Juraboev, a resident of Brooklyn and a citizen of Uzbekistan, had previously purchased a plane ticket to travel from New York to Istanbul and was scheduled to leave the United States next month. Habibov, a resident of Brooklyn and a citizen of Uzbekistan, helped fund Saidakhmetov’s efforts to join ISIL.
As alleged in the complaint, Juraboev was also prepared to engage in an act of terrorism in the United States if ordered to do so by ISIL, and Saidakhmetov intended to commit such an act if unable to travel abroad to join ISIL. In the August 2014 posting on the website that propagates ISIL’s ideology, Juraboev offered to kill the President of the United States if ordered to do so by ISIL. More recently, Saidakhmetov expressed his intent to buy a machine gun and shoot police officers and FBI agents if thwarted in his plan to join ISIL in Syria.
“The flow of foreign fighters to Syria represents an evolving threat to our country and to our allies,” stated United States Attorney Lynch. “As alleged in the complaint, two of the defendants in this case sought to travel to Syria to join ISIL but were also prepared to wage violent jihad here in the United States. A third defendant allegedly provided financial assistance and encouragement. We will vigorously prosecute those who attempt to travel to Syria to wage violent jihad on behalf of ISIL and those who support them. Anyone who threatens our citizens and our allies, here or abroad, will face the full force of American justice.” Ms. Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state, and local agencies from the region.
“The charges against Juraboev, Saidakhmetov and Habibov reflect our commitment to finding those who wish to provide material support to ISIL, as well as those committed to fighting on behalf of ISIL, either at home or abroad, and preventing them from doing so,” said Assistant Attorney General Carlin. “The National Security Division will continue to work to stem the flow of foreign fighters and financial resources to terrorist organizations operating in Iraq and Syria. I would like to commend all those whose tireless efforts helped bring these charges.”
“As alleged, the defendants looked to join the Islamic State of Iraq and the Levant by flying to Turkey in a vain attempt to evade detection. And one of the defendants was prepared to commit acts of terror here—in America—if he could not travel, to include killing FBI agents. The defendants violated the true tenants of their faith in pursuit of their radical, violent agenda. We rely on help from the community, the public, and religious leaders to be mindful of those who could be radicalized. We cannot do this alone,” said FBI Assistant Director-in-Charge Rodriguez.
“ISIL calls on its followers to come fight for the terrorist organization in Syria,” said Police Commissioner Bratton, “and in messages to followers outside Syria, ISIL has called on them to attack police, intelligence officers, or the military in their home countries including the United States. By pledging allegiance to ISIL, these defendants allegedly conspired to fight for a designated foreign terrorist organization, either in Syria or even New York.” Commissioner Bratton commended the work of the detectives and agents of the JTTF and the guidance of the U.S. Attorney for the Eastern District of New York throughout the investigation.
If convicted, each defendant faces a maximum sentence of 15 years in prison. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Alexander Solomon, Douglas M. Pravda, and Amanda Hector, with assistance provided by Trial Attorney Danya Atiyeh of the Justice Department’s Counterterrorism Section and the United States Attorney’s Office for the Middle District of Florida.
The Defendants:
ABDURASUL HASANOVICH JURABOEV
Age: 24
Nationality: Uzbeki
AKHROR SAIDAKHMETOV
Age: 19
Nationality: Kazakh
ABROR HABIBOV
Age: 30
Nationality: Uzbeki
E.D.N.Y. Docket No. 15-M-0172
Three Brandon, Mississippi, Men Sentenced for Their Roles in the Racially Motivated Assault and Murder of an African-American ManRead the Press Release
Victim Died After Being Run Over by Truck
The Justice Department announced today that William Kirk Montgomery, 25, of Puckett, Mississippi, Jonathan Kyle Gaskamp, 22, and Joseph Paul Dominick, 23, both of Brandon, Mississippi, were sentenced today in U.S. District Court in Jackson for their roles in a federal hate crime conspiracy involving multiple racially motivated assaults, culminating in the death of James Craig Anderson, an African-American man, in the summer of 2011. Montgomery was sentenced to 234 months; Gaskamp was sentenced to 48 months; and Dominick was sentenced to 48 months.
Montgomery had previously pleaded guilty to one count of conspiracy and one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his role in the death-resulting assault of Anderson, 47, of Jackson, Mississippi. Gaskamp previously pleaded guilty to one count of conspiracy and one count of violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act for his role in the conspiracy and in a violent assault of an unidentified African-American man near a golf course in the spring of 2011. Dominick pleaded guilty to one count of conspiracy for his role. A restitution hearing will be set for a later date.
“The Justice Department will always fight to hold accountable those who commit racially motivated assaults,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We hope that the prosecution of those responsible for this horrific crime will help provide some closure to the victim’s family and to the larger community affected by this heinous crime.”
“Violence fueled by hate spreads fear and intimidation throughout our community,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi. “The prison sentences today make clear that our community will not tolerate hate, and individuals who commit such despicable crimes will be brought to justice.”
“The guilty pleas and resulting sentences handed down today are the result of the tremendous efforts by men and women in law enforcement who worked on this case,” said Special Agent in Charge Donald Alway of the FBI in Mississippi. “The FBI takes very seriously its responsibility to protect the civil rights of all Americans, and remains committed to its pursuit of justice for anyone who is deprived of those rights."
In prior court hearings, the defendants had admitted that beginning in the spring of 2011, they and others conspired with one another to harass and assault African Americans in and around Jackson. On numerous occasions, the co-conspirators used dangerous weapons, including beer bottles, sling shots and motor vehicles, to cause, and attempt to cause, bodily injury to African Americans. They would specifically target African Americans they believed to be homeless or under the influence of alcohol because they believed that such individuals would be less likely to report an assault. The co-conspirators would often boast about these racially motivated assaults.
Montgomery admitted his presence and participation in numerous racially motivated assaults, including the beating and killing of James Craig Anderson. Specifically, Montgomery admitted that in the early morning hours of June 26, 2011, he and six other co-conspirators agreed to carry out their plan to find, harass and assault African Americans. At around 4:15 a.m., Montgomery and three co-conspirators drove to west Jackson in Montgomery’s white Jeep with the understanding that the other three co-conspirators would join them a short time later. Montgomery and the three other occupants of the Jeep then drove around west Jackson and threw beer bottles from the moving vehicle at African-American pedestrians they encountered.
At approximately 5:00 a.m., Montgomery and the three other two occupants of the Jeep spotted Anderson in a motel parking lot off Ellis Avenue. The occupants of the Jeep decided that Anderson would be a good target for an assault because he was African-American and appeared to be intoxicated. Two of the co-conspirators got out of the Jeep to distract Anderson while they waited for the other three co-conspirators to arrive. After the other three co-conspirators arrived in a Ford F250 truck, two of the co-conspirators physically assaulted Anderson. After the assault, Montgomery and three co-conspirators left the motel parking lot in the Jeep. The driver of the Ford F250 then deliberately used his truck to run over Anderson, causing injuries which resulted in Anderson’s death. After Anderson’s death, a number of the co-conspirators including Montgomery agreed to, and did, give false statements to law enforcement officials about the nature of their interactions with Anderson.
Gaskamp admitted to participating in an assault-filled evening during which he and five co-conspirators drove to Jackson armed with Gaskamp’s handgun, struck multiple victims with large glass beer bottles hurled from the moving vehicle. Gaskamp further admitted that they located a homeless African-American man near a golf course and that he and two of his co-defendants punched and kicked the man until he begged for his life. Dominick admitted to participating in different assault-filled evening during which he and four co-conspirators also struck multiple victims with large glass beer bottles thrown from their moving vehicle, and to shooting multiple victims with metal ball bearings fired from a slingshot.
Three other defendants in related cases, Deryl Paul Dedmon, 22, John Aaron Rice, 22, and Dylan Wade Butler, 23, all of Brandon, Mississippi, were previously sentenced to 600 months, 220 months, and 78 months, respectively for their roles in the conspiracy. Four other defendants involved in related cases, Sarah Adelia Graves, 21, of Crystal Springs, Mississippi, Shelby Brooke Richards, 21, of Pearl, Mississippi, John Louis Blalack, 20, and Robert Henry Rice, 24, both of Brandon, Mississippi, are awaiting sentencing.
This case was the result of a cooperative effort among the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Mississippi and the Hinds County, Mississippi, District Attorney’s Office. This case was investigated by the Jackson Division of the FBI and the Jackson Police Department. It is being prosecuted by Trial Attorney Sheldon L. Beer and Deputy Chief Paige M. Fitzgerald of the Justice Department’s Civil Rights Division, and Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi.
Ten Individuals Indicted in Stolen Identity Tax Refund SchemeRead the Press Release
GREENVILLE, Tenn. – Ten individuals were indicted on Feb. 10, 2015, for conspiracy to commit wire fraud, theft of public money and money laundering conspiracy, in a 10-count indictment handed down by a federal grand jury in Greenville, Tenn. Those indicted include:
Eugene Carl Kotelman, 39, of Burtchville, Mich.; Jamie Marie Lowery, 38, of Port Huron, Mich.; Brian Keith Elliott, 49, of Greenville, Tenn.; Bernard Erwin Goewey, 47, of Afton, Tenn.; Michelle Goewey, 44, of Afton, Tenn.; Timothy Ray Groh, 46, of Port Huron, Mich.; Jake Marshall McKelvey, 53, of Atlanta, Mich.; Gerald Kenneth Orshal, III, 56, of Crystal River, Fla.; Amy Rose Peters Thompson, 33, Port Huron, Mich.; and Terri Lynn Worley, 52, of Port Huron, Mich.
The indictment on file with the U.S. District Court alleges that between January 2008 and December 2012, these individuals conspired to obtain money from the Internal Revenue Service (IRS) by submitting fraudulent federal income tax returns that claimed false federal income tax refunds. As part of the scheme, they submitted, or caused to be submitted, a total of 150 federal income tax returns claiming false tax refunds of $1.2 million. The false returns were filed using stolen Personal Identification Information (PII) that was used without the individual’s authorization.
Eugene Kotelman is currently incarcerated with the Michigan Department of Corrections.
On Feb. 25, 2015, Jamie Lowery and Jake McKelvey were arrested in Charlotte, N.C.; Amy Peterson, Timothy Groh and Teri Worley were arrested in Detroit, Mich.; Gerald Orshal was arrested in Tampa, Fla.; and Brian Elliott, Michelle Goewey and Bernard Goewey were arrested in Greeneville, Tenn. They appeared in U.S. District Court before U.S. Magistrate Judge Dennis H. Inman in Greenville, Tenn., on Feb. 25, 2015.
The case was investigated by Special Agents with the IRS–Criminal Investigation. Assistant U.S. Attorney Helen Smith represents the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Tangible Software, Inc. Agrees to Resolve False Claims Act AllegationsRead the Press Release
Baltimore, Maryland - Department of Defense contractor Tangible Software, Inc., owned and operated by Energy Management and Security Solutions, LLC since 2011, has agreed to pay the United States between $500,000 and $1.05 million to resolve allegations under the False Claims Act that the company submitted false claims to the Department of Defense under prior ownership from 2008 to 2011.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) - Mid-Atlantic Field Office; Acting Inspector General Jim Gribble of the Defense Information Systems Agency (DISA); and General Services Administration (GSA) Deputy Inspector General Robert C. Erickson.
This settlement resolves allegations that Tangible Software submitted claims for reimbursement of costs associated with contracts with the GSA and Defense Information Systems Agency involving information technology support and services, knowing that the requested reimbursements of costs exceeded what Tangible Software actually paid for the services. There has been no judicial finding of liability and Tangible Software denies liability.
“Defense contractors are required to bill for costs actually incurred, and to be truthful in the claims they submit to federal agencies," said United States Attorney for the District of Maryland Rod J. Rosenstein.
“This Tangible Software case is a prime example of how DISA IG works to detect and prevent fraud schemes within the Agency and recuperate funds for the U.S. government,” said DISA Acting Inspector General, Jim Gribble.
“GSA contracts need to be executed in the best interest of American taxpayers,” said GSA Deputy Inspector General Robert C. Erickson.
As part of the settlement, Tangible Software has agreed to make additional payments above a minimum settlement payment of $500,000, depending on the financial performance of the company over the next five years and the outcome of a shareholder lawsuit Tangible Software has initiated against its prior management that oversaw the period of misconduct. The investigation was aided by the new ownership disclosing alleged misconduct by the prior ownership.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government's recovery. The civil lawsuit was filed in the District of Maryland and is captioned United States ex rel. Michael Bradle v. Tangible Software, Inc. As part of today’s resolution, Mr. Bradle will receive a minimum of $80,000 from the settlement.
The settlement was a result of an investigation by the U.S. Attorney's Office for the District of Maryland, DCIS, Defense Information Systems Agency - Inspector General's Office, and GSA - Inspector General's Office. Mr. Rosenstein commended the Defense Contract Audit Agency for their assistance in the investigation. The investigation was handled by Assistant U.S. Attorney Thomas Barnard.
Tallahassee Man Pleads Guilty to Production of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Jonathan Harry Lee Williams of Tallahassee, Florida, pled guilty today to using a minor to produce child pornography and to possessing child pornography. The plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Williams, the former registrar at Ruediger Elementary School, was arrested on December 11, 2014, after FBI agents executed a search warrant at his home. During the search, law enforcement seized Williams’s smart phones, which contained child pornography.
Today in court, Williams admitted that he had used his smart phone to take sexually explicit photos of two children at his home between the summer and fall of 2014. Williams uploaded the images to a “photo hosting” website. Williams also admitted that he had been downloading nude photographs of children from the internet for the past ten years.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jason Beaton. Sentencing is scheduled for May 15, 2015, at 1:30 p.m. in Tallahassee before United States District Judge Mark E. Walker.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
St. Paul Woman Pleads Guilty to Filing over $200,000 in False Tax ReturnsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of CINDY LEE LINEBAUGH, 48, to one count of False, Fictitious and Fraudulent Claims. LINEBAUGH was indicted on September 24, 2014, and pleaded guilty on February 24, 2015, before U.S. District Judge Susan Richard Nelson in St. Paul, Minn.
According to the defendant’s guilty plea, in February 2010, LINEBAUGH began a tax fraud scheme in which she knowingly prepared and filed false tax returns on behalf of herself and others. LINEBAUGH used fraudulent W-2s which falsely claimed that the individuals were employed by and earned wages from employers such as Northwest Airlines and the City of St. Paul.
According to court documents, during calendar years 2010 and 2011, LINEBAUGH prepared and filed approximately 73 false returns for tax years 2009 and 2010 using online tax- preparation software. The refunds were loaded onto a debit card and sent by the IRS directly to the individuals. LINEBAUGH charged individuals anywhere from $100 to $300 for her tax- preparation services. The total amount of the tax loss for all returns was approximately $287,561.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case is being prosecuted by Assistant U.S. Attorney John E. Kokkinen.
Defendant Information: CINDY LEE LINEBAUGH, 48
St. Paul, Minn.
Convicted: • False, Fictitious and Fraudulent Claims, 1 countSt. Joseph Man Sentenced for Attempted Murder of an InformantRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was sentenced in federal court today for attempting to murder an informant in retaliation for providing information to law enforcement officers.
Justin M. Hill, 21, of St. Joseph, was sentenced by U.S. District Judge Howard F. Sachs to five years and 11 months in federal prison without parole.
On April 25, 2014, Hill pleaded guilty to the attempted murder of an informant. The informant had told federal agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives that Hill was bringing powder cocaine from Kansas City, Mo., to St. Joseph. Missouri State Highway Patrol troopers attempted to stop Hill, who while fleeing from them tossed two ounces of cocaine out of his vehicle. Hill was stopped and arrested, but troopers could not find the tossed cocaine.
On multiple occasions following the stop, law enforcement officers saw Hill searching in that area. When asked what he was looking for, Hill told them he was looking for a lost ring. On Sept. 5, 2013, law enforcement officers found the cocaine in brush about seven or eight feet from the roadway.
After the traffic stop, Hill told the confidential source that he believed the source had informed law enforcement about the cocaine. On Aug. 30, 2013, Hill used a Chevy Suburban to ram the confidential informant’s vehicle. Hill got out of his vehicle and fired six shots at the confidential informant.
This case was prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Buchanan County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.
Silver Spring Man Pleads Guilty to $1.6 Million SBA Fraud SchemeRead the Press Release
Baltimore, Maryland - Stewart Mark Twayne Harris, age 38, of Silver Spring, Maryland, pleaded guilty today to bank fraud, money laundering and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to his plea, in April 2009, Harris applied for a $1,666,700 loan from a commercial lender for the purported purpose of using loan proceeds to purchase a commercial glass company. The loan was to be guaranteed by the Small Business Administration (SBA). To secure the business loan, Harris submitted a loan application and purported tax returns in which he falsely represented the social security number of another individual to be his own. He also submitted false bank statements in which he used the stolen identity of a second victim, and an equity statement which falsely represented the amount of paid receipts and other cash injection into the business he was to purchase.
Based on this false documentation, the SBA and the lender approved the loan, with the SBA guaranteeing 89.99% of the loan amount. On June 26, 2009, the lender disbursed $1,591,666 to Harris. From June to October, 2009, in order to conceal the loan proceeds, Harris deposited and withdrew the proceeds into different bank accounts he controlled. On October 1, 2009, Harris withdrew part of the funds to make a deposit and down payment on the purchase of a home in Brandywine, Maryland.
Harris defaulted on the loan on January 5, 2011. SBA paid the lender approximately $1,515,918.90 in satisfaction of its loan guarantee.
In April 2012, Harris filed a voluntary petition for bankruptcy. In his petition to the bankruptcy court, Harris failed to declare the commercial lender as a creditor, and failed to disclose that he was an officer or director, and owner of five percent or more, of the glass company.
Harris has agreed to pay restitution of at least $1,666,700, and forfeit the residential property located in Brandywine, Maryland.
Harris faces a maximum sentence of 30 years in prison for bank fraud, 20 years in prison for money laundering and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. U.S. District Judge J. Frederick Motz scheduled his sentencing for June 12, 2015, at 10:00 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
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 SBA- OIG and SSA – OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom, who is prosecuting the case.