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17 February 2015
Houston Man Convicted in Million Dollar Fraud Scheme Targeting Dozens of Elderly VictimsRead the Press Release
HOUSTON – Michael Irving, 33, has entered a guilty plea to one count of conspiracy to commit wire fraud and one count of aggravated identity theft, announced U.S. Attorney Kenneth Magidson.
Between Jan. 1, 2013, and Nov. 30, 2013, Irving engaged in a wire fraud conspiracy to unlawfully obtain cash and defraud Compass Bank, a FDIC insured institution. Irving and his co-conspirators unlawfully obtained, shared and busted out multiple credit cards for cash and shared the proceeds with each other.
Irving owned and operated Majix Studio - a business used in the conspiracy - and had a PayPal account for it. Irving would swipe, and authorize his co-conspirators to swipe, fraudulently obtained credit cards through his business terminal using credit card processors PayPal had provided. After the cards were swiped, the funds were deposited into bank accounts or onto debit cards under the care, custody and control of Irving and his co-conspirators.
Irving admitted to processing multiple illegitimate transactions through his business during the course of the conspiracy.
Irving knew the credit cards were fraudulent because they had been applied for and obtained through the use of stolen identities. There were at least 70 victims whose identities had been stolen, all senior citizens between the ages of 70 and 95, living throughout the country.
Irving also knew the transactions going through his processors were illegitimate as there was no exchange of goods for services. Typically, the conspirators ran the fraudulently obtained credit cards for $1,000 to $5,000 until they reached their limits. When necessary, Irving and his co-conspirators would fabricate and submit false information, receipts, invoices and other documentation to PayPal regarding the fraudulent transactions to further facilitate the fraud.
In total, the co-conspirators stole approximately $1.1 during the conspiracy.
U.S. District Judge Lynn Hughes, who accepted the guilty plea today, has set sentencing for May 18, 2015. At that time, Irving faces up to 30 years in prison and a possible $1 million fine for the conspiracy as well as a mandatory 24-month for the identity theft which must be served consecutively to any other sentence imposed.
Co-conspirator Raymond Goffney, 38, also of Houston, previously pleaded guilty to conspiracy and aggravated identity theft. He faces the same penalties and will be sentenced April 27, 2015.
Both were permitted to remain on bond pending sentencing.
The charges are the result of an investigation conducted by the U.S. Secret Service and U.S. Postal Inspection Service. Assistant U.S. Attorney Julie Searle is prosecuting the case.
Henderson County Woman Sentenced for EmbezzlementRead the Press Release
Department of Justice
Office of Public AffairsTYLER, TEXAS – A 55-year-old Murchison, Texas woman has been sentenced to federal prison for embezzlement in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Deborah Cornett pleaded guilty on June 9, 2014 to embezzlement by a bank employee and was sentenced to 41 months in federal prison today by U.S. District Judge Leonard Davis. Cornett was also ordered to pay restitution in the amount of $365,988.43.
According to information presented in court, from November 2007 to May 2013, Cornett was an officer and employee of the First State Bank of Ben Wheeler. During that time, Cornett embezzled from bank payroll accounts, the bank Christmas Club account, certificates of deposit, and from fraudulently issued bank loans.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Gila River Woman Sentenced to 5 Years in Prison for Robbery at the Wild Horse Pass CasinoRead the Press Release
PHOENIX – Today, Prima Shalis Mendoza, 36, a member of the Gila River Indian Community, was sentenced by U.S. District Judge John J. Tuchi to 60 months in prison as a result of pleading guilty on Dec. 4, 2014, to robbery.
On June 26, 2014, the victim was parked outside the Wild Horse Pass Casino, on the Gila River Indian Community, when Mendoza approached her and threatened to shoot her if she did not hand over her purse. Mendoza fled with the victim’s purse, but she was later arrested after a thorough investigation.
The investigation in this case was conducted by the Gila River Police Department, the Security and Surveillance Departments of the Wild Horse Pass Casino, and the Chandler Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-01065-PHX-JJT
RELEASE NUMBER: 2015-017_Mendoza
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Getaway Driver Sentenced to 68 Months in Prison for Armed Robbery of Belleville Liquor StoreRead the Press Release
Case is one of many brought as a result of the United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
Follow @SDILNewsCharmonequette Reynolds, 22, was sentenced on February 13, 2015, in the U.S. District Court to 68 months in prison on a three-count indictment charging her with Conspiracy to Interfere with Commerce by Robbery, Interference with Commerce by Robbery, and Use of a Firearm During a Crime of Violence, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Following her prison sentence, Reynolds will be on federal supervised release for 3 years. Reynolds was also ordered to pay restitution in the amount of $10,465. Reynolds has been in custody since her arrest on July 12, 2013.
Documents filed in U.S. District Court establish that on July 12, 2013 Reynolds drove her two co-defendants, Timothy Collier and Roderick Taylor, to Arena Liquor located at 105 S. Belt E, Belleville, Illinois to commit a robbery. While Reynolds waited in her vehicle, Collier and Taylor entered Arena Liquor armed with two firearms. Collier and Taylor pointed the firearms at the two individuals in the store and demanded money from the cash registers as well as their personal belongings. Collier and Taylor left the liquor store with approximately $15,000 of United States Currency, entered Reynolds’ vehicle, and the three fled from the scene. Reynolds was identified and apprehended a short time after the robbery and interviewed by law enforcement. During the interview, Reynolds admitted to her involvement in the planning and participation in the armed robbery and named Collier and Taylor as her two accomplices.
This case was investigated by the Belleville Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Ali Summers.
Former Pennsylvania Treasurer Robert M. McCord Pleads Guilty to Two Counts of Attempted ExtortionRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that former Pennsylvania State Treasurer Robert M. McCord pleaded guilty to two counts of attempted extortion in violation of Title 18, United States Code Section 1951(a).
Each count is punishable by up to 20 years’ imprisonment and fine of up to $250,000. U.S. District Court Judge John E. Jones, III, accepted the guilty plea and scheduled a pre-sentence conference for June 29, 2015.Mr. McCord admitted that he attempted to extort campaign contributions from a law firm and a property management company while he was running for Governor by threatening economic harm to the potential donors if they failed to make sufficient campaign contributions. In particular, McCord threatened to use his position as State Treasurer to interfere with the business that the law firm and property management firm were conducting with the state if they did not make the contributions.
First Assistant U.S. Attorney Dennis C. Pfannenschmidt was designated United States Attorney for this case because United States Attorney Peter J. Smith recused himself. Mr. Smith previously worked for Mr. McCord for a short period of time at the Pennsylvania Treasury Department.
Mr. Pfannenschmidt stated that “public corruption cases are some of the most serious cases our office handles and this case indicates a serious breach of the public trust. Our office is committed to working with our law enforcement partners in holding public officials responsible for their violation of the public trust.”
“The citizens of the Commonwealth expect and deserve public officials who perform their duties free of deceit, favoritism, bias, self-enrichment, concealment and conflict of interest,” said Special Agent in Charge Edward J. Hanko of the Philadelphia Division of the FBI. “Public corruption is an erosion of the public’s trust in our system of government, and the FBI stands committed to holding public officials accountable when they violate their oaths of office and betray that trust.”
"The abuse of power by elected officials tears at the fabric of society, undermines the rule of law and weakens public confidence in government," said Major Andrew Ashmar, Pennsylvania State Police, Bureau of Criminal Investigation. "The Pennsylvania State Police is steadfast in our commitment to bring to justice those who use the power of their office for personal gain rather than serving the best interest of the public."
“When our public officials fail to uphold the integrity of the office to which they were elected, the Internal Revenue Service, Criminal Investigation Division is committed to working with our fellow law enforcement agencies to restore the public’s trust,” said Special Agent in Charge Akeia Conner.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Internal Revenue Service, Criminal Investigation Division. The prosecution is assigned to Assistant United States Attorneys Michael A. Consiglio, William S. Houser, and Gordon A. D. Zubrod.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Oakland Accountant Pleads Guilty to Identity Theft Tax Fraud SchemeRead the Press Release
OAKLAND – Robert Thomas Doyle pleaded guilty in federal court on February 13, 2015, to wire fraud and aggravated identity theft, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the plea agreement, during 2011, 2012, and 2013 Doyle, 64, of Oakland, implemented an identity theft and tax fraud scheme in which he caused the filing of a number of tax returns claiming fraudulent refunds. As part of his scheme, Doyle, created false businesses and claimed false income and expenses for his clients in order to maximize the Earned Income Tax Credit to obtain a larger refund. Doyle did not ask his clients about any income earned or current or past employment history. Doyle also used the names and Social Security numbers of former clients to prepare and file false tax returns without these victims' knowledge or consent. On many of the tax returns, Doyle directed the refunds to be mailed to addresses where he could retrieve them or have the refunds direct deposited into bank accounts that he controlled. Doyle kept a portion of the refund as his fee.
Doyle was a Certified Public Accountant until 1987. On February 20, 2014, he was charged in a sixteen count indictment with mail fraud, wire fraud, and aggravated identity theft. Doyle pleaded guilty to one count of wire fraud and one count of aggravated identity theft. He is scheduled to be sentenced on June 19, 2015, before the Honorable Jon S. Tigar, United States District Judge, in Oakland.
The maximum statutory penalty for each count of wire fraud, in violation of Title 18, U.S.C § 1341 and 1343, is 20 years in prison and a fine of $250,000. The maximum penalty for aggravated identity theft, in violation of Title 18, U.S.C § 1028A, is two years in prison, consecutive to the underlying felony and a fine of $250,000.
Assistant US Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Former Hospital Employee Sentenced for HIPAA ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, TEXAS – A former employee of an East Texas hospital has been sentenced to federal prison for criminal HIPAA violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Joshua Hippler, 30, formerly of Longview, Texas, pleaded guilty on Aug. 28, 2014, to wrongful disclosure of individually identifiable health information and was sentenced to 18 months in federal prison today by U.S. District Judge Leonard Davis.
According to information presented in court, from December 2012 through January 2013, Hippler was an employee of a covered entity under HIPAA, the Health Insurance Portability and Accountability Act. During this time, Hippler obtained protected health information with the intent to use it for personal gain. Hippler was indicted by a federal grand jury on Mar. 26, 2014.
This case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) and the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Former Garland, Texas, Man Admits Aiming A Laser Pointer at HelicopterRead the Press Release
DALLAS — A former resident of Garland, Texas, appeared in federal court this morning, before U.S. Magistrate Judge Irma C. Ramirez, and admitted aiming a laser pointer at a helicopter, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Steven Alexander Chavez, Jr., 23, pleaded guilty to an indictment charging one count of aiming a laser pointer at an aircraft. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for June 3, 2015, before Chief U.S. District Judge Jorge A. Solis.
According to documents filed in the case, in August 2013, Chavez knowingly aimed the beam of a laser at a Texas Department of Public Safety (DPS) helicopter. Chavez aimed the laser at the helicopter from the backyard of a friend, while the helicopter was flying overhead.
A few days later, special agents with the FBI arrested Chavez in Lubbock, Texas, where he had recently relocated from Garland. Following his initial court appearance, he was released on bond.
The FBI, Texas DPS and Garland Police Department are investigating. Special Assistant U.S. Attorney Lara Burns is prosecuting.
Former Employee Convicted in Scheme to Defraud Garden RidgeRead the Press Release
HOUSTON – Sandra Johnson, 48, of Katy, has admitted to receiving kickbacks in a money laundering conspiracy that targeted home décor retailer Garden Ridge Pottery, now known as At Home, announced U.S. Attorney Kenneth Magidson.
Johnson was employed as a claims manager at Garden Ridge. In that role, she was responsible for reviewing and approving payment on injury claims filed against the store by its customers, commonly referred to as “slip and fall” claims. Johnson and others conspired to submit fraudulent claims against Garden Ridge for injuries which were either faked or never occurred.
In all, 26 false claims were filed against Garden Ridge which resulted in the issuance of $2,063,436 in settlement proceeds. The fraudulent settlement proceeds were split amongst the alleged injury victims and other co-conspirators, with most of the funds kicked back to Johnson. She admitted to laundering the kickbacks she received by having her co-conspirators pay her either in cash or with cashier’s checks which had been purchased under nominee names.
Natalie Jeng, 42, of Katy, Darlene Drummer, 43, of Fresno, and Niesha Hall, 36, of Houston, have all also pleaded guilty to their respective roles in the scheme. Jeng, Johnson’s sister, was employed as a claims adjuster at a third-party administrator hired by Garden Ridge to administer and investigate claims. Thus, many of the fraudulent claims that were allegedly reviewed by Johnson at Garden Ridge were then reviewed and approved by her sister. Jeng also received a portion of some settlements for her role in the scheme. Drummer and Hall, in addition to filing false claims against Garden Ridge in their own names, also recruited other complicit claimants into the scheme.
U.S. District Judge Kenneth Hoyt has set sentencing for May 11, 2015, at which time Johnson faces up to 20 years in prison and a fine of $250,000. The other three women convicted in the scheme will also be sentenced on that date.
The investigation was conducted by Internal Revenue Service – Criminal Investigation and U.S. Postal Inspection Service. Assistant U.S. Attorney Jay Hileman is prosecuted the case.
Felon Admits to Firearm Charge, Violating Supervised ReleaseRead the Press Release
PROVIDENCE, R.I. – Sarunn N. Phan, 27, of Providence, pleaded guilty in federal court today to being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
Phan faces a statutory sentence of up to 10 years in federal prison when he is sentenced by U.S. District Court Judge Mary M. Lisi on May 7, 2015. Phan also faces a consecutive sentence of up to 2 years in prison for being in violation of federal supervised release. In June 2011, Phan was sentenced to 48 months in federal prison to be followed by 3 years supervised release for being a felon in possession of a firearm.
According to information presented to the court, late in the evening of April 9, 2014, Providence Police responded to shots fired in the vicinity of Oakland and Dickens Street. Upon arrival, officers found eleven .9mm shell casings on the ground and noticed a Jeep Grand Cherokee in the vicinity. About an hour later, officers observed the same vehicle at Douglas Avenue and Eaton Street. After observing a traffic violation, the officers affected a traffic stop.
While pulling in behind the vehicle, officers observed an individual in a rear passenger seat toss a large black box into the rear cargo area. Upon arriving at the vehicle, the officers observed an open box with a firearm inside in the rear cargo area. Upon further inspection, officers discovered a .9mm handgun with an empty magazine. They also located a black plastic bag with ten .380mm rounds and a Glock 40 caliber magazine with 8 rounds of ammunition.
After being placed inside a police cruiser, Phan told an officer, “It is my car and everything in it is mine.” At the police station, Mr. Phan admitted that the Jeep was registered to him, the weapon was his, and told officers “it was self-defense.” Phan told police that he had been shot at earlier in the evening.
Phan has been detained since his arrest.The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Fairmont, WV man convicted of stealing government moneyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Former United States Forest Service employee Kwaku A. Akomah, 41, of Fairmont, West Virginia, was convicted today in federal court of stealing government money, United States Attorney William J. Ihlenfeld, II, announced today.
A Forest Service investigation revealed that Akomah made repeated unauthorized purchases using government funds. He made a variety of unauthorized personal purchases, including the use of a government issued fuel card to procure more than $1,000.00 in gasoline for his personal vehicle.
Akomah pled guilty today to one count of “Theft of Government Money.” He faces up to 10 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 defendant.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Facilities Director Sentenced for Bribery in Connection with Building ContractsRead the Press Release
BOSTON – The facilities director of two non-profits which provide support services for developmentally disabled adults and their families was sentenced today in connection with soliciting bribes.
Charles Feeney, 60, of Billerica, was sentenced by U.S. Senior District Judge Mark L. Wolf to six months in prison, three years of supervised release, and ordered to pay $142,927 in restitution. In May 2012, Feeney pleaded guilty to two counts of soliciting bribes.
Feeney was the facilities director for Community Alternative Residential Environments, Inc. (CARE) and Walnut Street Center (WSC), two Massachusetts based non-profits which provide support services for developmentally disabled adults and their families. When CARE/WSC purchased a building which was to be renovated and turned into administrative offices and a day facility, it was Feeney’s job to solicit bids for the general contract and oversee the renovation process. Instead, Feeney made an agreement with a general contractor he knew to get the contract and in exchange, Feeney would get the electrical subcontract for his business, C.T. Feeney & Sons Electrical Services. In so doing, Feeney falsely assured both the then-executive director and the finance director of CARE/WSC that he had received three bids for the project when, in fact, there were no bids.
In 2006 and 2007, the renovations were done in two phases. During the second phase, Feeney told the general contractor that he wanted a bucket truck for use in his own business and the two agreed that the contractor would pay for Feeney’s bucket truck in purported project rental fees to reimburse Feeney for the truck. Feeney’s net benefit from the electrical subcontract was more than $139,000. After Feeney’s role in the renovation was discovered, the non-profit also incurred more than $142,000 in attorney’s fees in the effort to determine whether the renovations had been properly performed and in assisting the government in the investigation of the offense.
United States Attorney Carmen M. Ortiz; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Glenn A. Cunha, Inspector General of the Commonwealth of Massachusetts made the announcement. The case was prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
District Court Judge Sentences St. Thomas Man to 10 Years in PrisonRead the Press Release
St. Croix, USVI – Senior District Court Judge Raymond L. Finch today sentenced Calieb Webster, 32, of St. Thomas, to 10 years in prison for conspiracy to possess with intent to distribute cocaine, announced United States Attorney Ronald W. Sharpe and U.S. Department of Homeland Security Homeland Security Investigations Special Agent-in-Charge Angel Melendez.
Judge Finch also sentenced Webster to five years of supervised release, and ordered him to pay a $100 special assessment.
On August 5, 2013, Webster pleaded guilty to conspiracy to possess with intent to distribute cocaine. Court records show that on February 27, 2012, Webster and his girlfriend presented themselves for primary inspection at the Henry E. Rohlsen Airport on St. Croix for travel to New York via Miami. They were referred to a baggage control secondary inspection, and a search of Webster’s checked bag yielded a black plastic bag covered with clothing and aluminum foil. Upon further inspection, the Customs and Border Protection officer observed 15 rectangular-shaped objects wrapped in plastic. Six additional rectangular-shaped objects were found in Webster’s carry-on bag, and several in the girlfriend’s. The rectangular-shaped objects were analyzed and confirmed to contain 36.32 kilograms of cocaine.
U.S. Attorney Sharpe commended the efforts of the U.S. Department of Homeland Security Homeland Security Investigations who investigated the case, and Assistant U.S. Attorney Rhonda Williams-Henry who prosecuted the case.
Co-Owner of Overland Park Hotel Sentenced to Prison for Employing Undocumented WorkersRead the Press Release
KANSAS CITY, KAN. - The co-owner of an Overland Park hotel was sentenced Tuesday to 21 months in federal prison for employing undocumented workers, who were paid less than other employees, U.S. Attorney Barry Grissom said. She also agreed to forfeit her interest two hotels and funds derived from the crime.
Rhonda R. Bridge, 42, and her husband, Munir Ahmad Chaudary, 53, both of Overland Park, Kan., pleaded guilty to one count of conspiracy to harbor undocumented aliens for personal gain. In their pleas, they admitted employing undocumented workers at two hotels they owned: A Clarion Hotel at 7000 W. 108th in Overland Park, and a Clarion Hotel at 11828 NW Plaza Circle in Kansas City, Mo. Chaudary and Bridge lowered their hotels’ operating costs and put themselves at a competitive advantage by not paying Social Security, Workers Compensation and unemployment insurance for the undocumented workers.
According to court records, the investigation began in December 2011 when the U.S. Department of Homeland Security (DHS) and the Kansas Department of Revenue (KDOR) received information that the owners of the hotels were employing foreign nationals who not lawfully present in the United States. In June 2012, an undercover agent posing as an undocumented worker got a job at the Overland Park Hotel. He was hired even though he told his employers he was not authorized to work in the United States.
In 2011 and 2012 the defendants filed false and fraudulent Quarterly Wage Reports and Unemployment Tax Returns with the Kansas Department of Labor in which they under-reported the number of employees at the Overland Park hotel, the amount of total wages paid and the amount of unemployment taxes due.
Bridge is the third person to be sentenced in the case. Judith Vanzant, a hotel manager, and Syed Naqvi, a Pakistani native who worked as a desk clerk, already were sentenced. Co-defendant Munir Ahmad Chaudary is awaiting sentencing.
Grissom commended Homeland Security Investigations (HSI), the Kansas Department of Revenue (KDOR), the Overland Park Police Department, the U.S. Department of Labor and Assistant U.S. Attorney Brent Anderson for their work on the case.
Biogenesis Founder Sentenced Today for his Role in Conspiracy to Distribute Testosterone and Human Growth Hormones to Underage High School and Professional AthletesRead the Press Release
Anthony Bosch, 50, of Key Biscayne, was sentenced today to four years imprisonment, to be followed by three years of supervised release for his role in administering testosterone and human growth hormone to underage high school and professional athletes. The court also ordered Bosch to perform 200 hours of community service and prevented him from working in the medical field in the future.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
The charges stem from a DEA investigation, which focused on the illegal distribution of testosterone by the charged defendants in Miami-Dade County, and elsewhere. In August 2014, seven defendants, including Yuri Sucart, Juan Carlos Nuñez, and Lazaro Daniel Collazo, were charged with conspiracy to distribute testosterone. Bosch, Carlos Javier Acevedo, Jorge Augustine Velazquez, Christopher Benjamin Engroba, Paulo Berejuk, and Juan Carlos Nuñez plead guilty. Acevedo, Velazquez, and Engroba have been sentenced in connection with this conspiracy. Sentencing for Berejuk is scheduled for February 25, 2015 at 8:30 a.m. before U.S. District Judge Cecilia M. Altonaga. Sentencing for Nuñez is scheduled for March 3, 2015 at 8:30 a.m. before Judge Altonaga.
The charges, filed in August 2014, focused on the illegal distribution of testosterone by the operators of several anti-aging clinics in Miami, Florida, recruiters for these clinics, and a black market distributor of testosterone. These anti-aging clinics were incorporated under several different corporate names: Biogenesis of America, LLC; Biokem, LLC; Revive Miami, LLC; and others by the same group of people who occasionally worked together in the time period 2008 through 2012. One of the original founders of these clinics was Anthony Bosch.
Bosch and his co-conspirators were all charged with one count of conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846.
Mr. Ferrer thanked the DEA for their work on this investigation. This case was prosecuted by Senior Litigation Counsel Michael P. Sullivan and Assistant U.S. Attorney Sharad A. Motiani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Attorney General Holder Delivers Remarks at the National Press ClubRead the Press Release
Remarks as prepared for delivery
Thank you, President [John] Hughes, for that kind introduction – and for your leadership, and stewardship, of this venerable institution. I’d also like to thank past President Donna Leinwand Leger, of USA Today, for inviting me to be here this afternoon; the National Press Club’s officers, and your entire Board of Governors, for their critical work; and all of the journalists, both in and beyond this crowd, who contribute so much to our national discourse.
It is a pleasure to stand today among so many distinguished members of the Fourth Estate. And I am humbled to follow in the footsteps of the remarkable men and women who have addressed this organization since its founding, over a century ago. Before we open the floor for questions this afternoon, I’d like to take a few minutes to discuss the latest developments in the Justice Department’s ongoing efforts in the field of criminal justice reform – as well as the significant and extremely promising results we’re beginning to see just 18 months after the launch of our Smart on Crime initiative.
When I took office as Attorney General, a little over six years ago, I came to the job having seen America’s justice system from a number of angles – primarily as a prosecutor, but also as a judge, and as an attorney in private practice. I’d had the great honor of serving alongside – and learning from – countless dedicated lawyers, brave men and women in law enforcement, and leading criminal justice experts of all stripes. I’d served under Administrations led by presidents of both political parties. I knew that, despite the laudable progress we’d brought about – over the past two decades – in lowering the overall crime rate, real and daunting challenges remained before us. And I understood that few of these challenges were more pressing than the need to strengthen the federal criminal justice system – and reduce America’s overreliance on incarceration.
After all, although the United States comprises just five percent of the world’s population, we incarcerate almost a quarter of its prisoners. While the entire U.S. population has increased by about a third since 1980, the federal prison population has grown by almost 800 percent over the same period. And on the day I took office, as a result of often well-intentioned policies designed to be “tough” on drugs, nearly half of all federal inmates were serving time for drug-related offenses.
As many of you have so thoroughly reported, this state of affairs not only had serious financial ramifications for our country – occupying roughly a third of the Justice Department’s budget in recent years; it exacted a human and moral toll that’s impossible to calculate. Studies showed that the policies that imposed these costs had not had a significant impact in making our communities measurably safer. And the persistence of this status quo demanded that national criminal justice leaders closely examine our institutions and reorient our practices to create the more perfect Union that our founders imagined – and the more just society that all Americans deserve.
With these aims in mind, under President Obama’s leadership, we began to push for serious changes. In 2010, as the result of our efforts – and the close partnership of leaders from both parties on Capitol Hill – the President was able to sign the Fair Sentencing Act, which reduced the inappropriate and unjust 100-to-1 sentencing disparity between crack and powder cocaine. Over the years, we’ve also worked to strengthen reentry policies aimed at reducing recidivism – and to advance a host of other targeted improvements like drug courts. In early 2013, I took these efforts to a new level by initiating an unprecedented, exhaustive and targeted Justice Department review of the federal criminal justice system as a whole – to identify obstacles, inefficiencies, and inequities, and to address ineffective policies.
This review culminated, about 18 months ago, with the launch of our groundbreaking criminal justice reform initiative known as Smart on Crime. Smart on Crime was a catch-all term for a range of reforms we implemented simultaneously in the summer of 2013, each significant in its own right. Among other steps, we made major changes to the department’s charging policies related to nonviolent drug offenses; we put sensible limits on when it was appropriate to seek stiffer sentences based on a defendant’s prior criminal record; and we took steps to improve reentry processes in order to reduce the chances that incarcerated individuals reoffend after they exit prison. Taken together, these reforms reflect the department’s age-old commitment to a criminal justice system that is fair; that deters serious criminal conduct; that holds people accountable for their crimes; and that utilizes incarceration wisely – to punish, deter, and rehabilitate - not merely to confine and forget.
Over the last year and a half – as my colleagues and I have implemented new crime prevention efforts, more effective community policing policies, and promising diversion and reentry strategies – I’ve spoken extensively about the changes we’ve made and the vision that is driving us forward. I’ve pointed to the favorable results we’ve seen on the state level – in places like Kentucky, Texas, Ohio and Pennsylvania – where governors and legislatures of both parties have provided a model for others to emulate by directing funding away from prison construction and toward programs designed to reduce recidivism. And I have placed particular emphasis on two of the most vital reforms at the heart of our Smart on Crime initiative: the prioritization of cases within each U.S. Attorney’s Office and a critical change to the Justice Department’s charging policies.
Late last year, we began compiling data to help us measure the impact of our criminal justice reforms. This data is preliminary. But it shows that the Smart on Crime initiative is working exactly as intended. It is having a real and measurable impact on the decisions made by federal prosecutors from coast to coast. The changes we’ve implemented are firmly taking hold. And our key reforms appear to be successful by every measure we’ve seen so far.
The numbers are particularly encouraging in three areas.
First, among the central components of Smart on Crime is an effort to reduce unnecessary incarceration by asking federal prosecutors to exercise discretion – and make smart and targeted decisions – about which cases warrant federal prosecution. As I said in a speech to the American Bar Association, in August of 2013, not every drug case should be brought in a federal court. Accordingly, I directed our United States Attorneys to develop specific, locally-tailored guidelines – consistent with national priorities – for determining when federal charges should be filed, and when cases should be handled at the state or local level. Today, I am pleased to report that our federal prosecutors are heeding that call. And they are being more selective in bringing certain drug prosecutions. Between 2013 and 2014, the number of defendants charged with drug trafficking offenses declined by nearly 1,400 individuals – a reduction of more than six percent.
Second, I instructed our prosecutors that, in the course of weighing which types of drug cases merit federal prosecution, they should focus on the worst offenders and offenses. The data from last year proves that, as a result of this shift, today, our prosecutors are focusing their attention – and their resources – on the most serious cases. In 2013, before Smart on Crime was implemented, the average guideline minimum for federal drug prosecutions – in other words, the average suggested minimum prison term for an individual being charged for a drug crime – was 96 months. A year later, while the number of drug trafficking prosecutions has dropped, the average guideline minimum has actually risen to 98 months. This demonstrates that the most serious drug crimes are now attracting the highest scrutiny – and that our limited resources are being used in ways that provide the greatest possible benefit to public safety.
Third, in August 2013, I also ordered a modification of the Justice Department’s charging policies to ensure that people accused of certain low-level, nonviolent federal drug crimes will face sentences appropriate to their individual conduct – rather than excessive mandatory minimum sentences that may be better suited to violent criminals or drug kingpins. This change was founded on the belief that, by reserving mandatory minimums for cases where they are warranted, we could better promote public safety, deterrence and rehabilitation, while making our expenditures smarter and more productive. Today, it’s clear that we are making significant progress toward this goal. In the year before our Smart on Crime charging policy took effect, roughly 64 percent of federally-charged drug trafficking offenses carried a mandatory minimum sentence. Last year, the new policy brought that number down to approximately 51 percent – a reduction of 20 percent relative to the prior year. Put another way, we have gone from seeking a mandatory minimum penalty in two out of every three drug trafficking cases, to doing so in one out of two. That’s a major reduction. In fact, it is historic. The Sentencing Commission confirms that these numbers show that federal prosecutors sought mandatory minimum penalties at a lower rate in 2014 than in any other year on record.
This figure, perhaps more than any other, shows the significant impact that our policy reforms are having. While other factors may play a role in the drop we are seeing in the overall number of drug cases, a decline this pronounced in the rate at which our prosecutors pursue mandatory minimum sentences can only be attributed to the changes we announced in 2013.
These are extremely encouraging results. And they demonstrate that, since we launched the Smart on Crime initiative, the federal criminal justice system has begun to operate more efficiently, by reducing its involvement in low-level criminal activity; more effectively, by targeting the most serious crimes, and more fairly – by ensuring that those who are convicted of crimes receive sentences that are commensurate with their conduct.
Now, some have suggested – since I announced these important reforms – that reducing our reliance on mandatory minimums might negatively impact the ability of our prosecutors to elicit cooperation from federal defendants. They asserted that, without the threat of a mandatory minimum sentence, a defendant in a drug case would have substantially less incentive to provide information or testimony about others who might be engaged in criminal enterprise. Some critics even worried that prosecutors would be less able to obtain guilty pleas, and that court dockets would overflow with defendants who might previously have pleaded guilty to avoid a mandatory minimum sentence but suddenly had less incentive to shorten the process.
I never considered these concerns persuasive. Like anyone who served as a prosecutor in the days before sentencing guidelines existed and mandatory minimums took effect, I knew from experience that defendant cooperation depends on the certainty of swift and fair punishment, not on the disproportionate length of a mandatory minimum sentence. With or without the threat of a mandatory minimum, it will always be in the interest of defendants to cooperate with the government. And I am gratified – but by no means surprised – to announce today that our Smart on Crime approach has been vindicated by the data we’ve gathered.
Even though mandatory minimums have been charged significantly less frequently under our new policies, the percentage of cases in which we receive substantial cooperation from defendants has remained exactly the same. This also holds true of the ability of our prosecutors to secure guilty pleas in these cases. In the year before Smart on Crime took effect, our prosecutors won guilty pleas in approximately 97 percent of drug trafficking cases. A year later, despite significant reductions in our uses of mandatory minimums, this percentage stands at 97.5. So the notion that the Smart on Crime initiative has somehow robbed us of an essential tool is contradicted not only by our history – but by clear and objective facts.
This newly unveiled data shows we can confront over-incarceration at the same time that we continue to promote public safety. Already, in Fiscal Year 2014, we saw the first reduction in the federal prison population in 32 years. Meanwhile, since President Obama took office, we’ve presided over a continued decline in the overall crime rate. This marks the first time that any administration has achieved side-by-side reductions in both crime and incarceration in more than 40 years.
All of this progress is remarkable, and all of it is noteworthy. These concrete results illustrate the tremendous – and very real – promise of the work that Smart on Crime is making possible. They signal a potential paradigm shift in the way our nation approaches vital questions of fairness and justice. And in the preliminary data we’ve seen – and the growing, bipartisan consensus surrounding the work that’s underway – they prove unequivocally that criminal justice reform is an idea whose time has finally come.
Remember: for years prior to this administration, federal prosecutors were not only encouraged – but required – to always seek the most severe prison sentence possible for all drug cases, no matter the relative risk they posed to public safety. I have made a break from that philosophy. While old habits are hard to break, these numbers show that a dramatic shift is underway in the mindset of prosecutors handling nonviolent drug offenses. I believe we have taken steps to institutionalize this fairer, more practical approach such that it will endure for years to come.
We can all be proud of these efforts, and encouraged by the steps that we’re taking every day to strengthen America’s justice system across the board. Thanks to the work of my dedicated colleagues; the valor of our brave men and women in law enforcement; the thoughtful leadership of bodies like the Judicial Conference of the United States and the United States Sentencing Commission; and the partnership of Republicans and Democrats in Congress and in so many state governments, the goals and the values of the Smart on Crime initiative have been codified and put into practice at every stage of the criminal justice process – from prosecution, to sentencing, to rehabilitation and reentry.
The work we have done is nothing short of groundbreaking. But this is no time to rest on our laurels. Significant challenges remain before us. And a great deal of work remains to be done.
Our prisons are still overcrowded. Across the country, far too many people remain trapped in cycles of poverty, criminality, and incarceration. Unwarranted disparities are far too common. Law enforcement is distrusted in far too many places and cops are not appreciated for the tough job they do so well. And if we hope to build on the record we’ve established so far – and to make the Smart on Crime initiative not only successful, but permanent – it will be incumbent upon all Americans—most especially our Congress—to work together to ensure that all of this is just the beginning. From critical improvements to the juvenile justice system, to a range of back-end criminal justice reforms, we must continue to advance promising, bipartisan legislation to make our communities safer, treat individuals more justly and allow more efficient use of law enforcement resources.
Our efforts over the last six years have laid a strong foundation for a new era of American justice. Congress can help us build on this foundation by passing important, bipartisan legislation like the Smarter Sentencing Act, which would give judges more discretion in determining sentences for people convicted of certain federal drug crimes. And going forward – with measures like this one, and with the tireless work of our United States Attorneys and their colleagues, the strong leadership of our outstanding new Attorney General and Deputy Attorney General, and the robust engagement of the American people – I believe there’s good reason for confidence in where this work will lead us.
In the coming weeks, as you know, my time in the Obama Administration – and my formal career in public service – will draw to a close. But even now, as I prepare to open a new chapter in my life – with pride in all that my colleagues and I have accomplished, and deep gratitude for the opportunities I’ve been afforded – I know that, for me, this effort will continue. Whatever I do next, and wherever my own journey may take me, I will keep seeking new ways to contribute, to remain engaged in the effort to improve our institutions, and to build trust in those who serve them. And although I will soon leave the Justice Department, I will never leave the work that has become the mission – and the single greatest honor – of my professional life: advancing the cause of justice and building a brighter future for the country I love.
I want to thank you all, once again, for the opportunity to speak with you this afternoon – and for the work you do every day to strengthen our democracy and inform our national dialogue. I look forward to your questions.
Area Men Sentenced for Healthcare Fraud CrimesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Quincy O. Gamble, 39, of Cahokia, Illinois, and Lawrence Thigpen, 53, of Collinsville, Illinois, were sentenced on Friday, February 13, 2015, for engaging in a scheme to commit health care fraud by defrauding the Home Services Program, which is a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
The district court sentenced Gamble to five years of probation; two years of supervised release, and a $100 special assessment. Gamble was also ordered to pay $6,704.89 in restitution to the Illinois Department of Human Services and to the Center for Medicare and Medicaid Services. During his plea hearing, Gamble admitted that he had submitted false and fraudulent bills in relation to his alleged performance of personal assistant services for his girlfriend, April Hayes, totaling 711 hours over an eleven month period. He even admitted to submitting claims for six months after his girlfriend had passed away. As a result, Gamble improperly billed $7,836.56 in payments for services not performed.
In a separate matter, the district court sentenced Thigpen to 15 months in federal prison, three years of supervised release, and to pay a special assessment of $100.00. Restitution was also ordered in the amount of $4,591.15. Facts brought out in Court showed that Thigpen was falsifying time sheets in order for his girlfriend, who was also his personal assistant, to receive payments for time periods when she was actually in jail.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police, Medicaid Fraud Control Bureau. The cases were prosecuted by Assistant United States Attorneys, Ranley R. Killian, William E. Coonan, and Michael Hallock.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
18 Named in Superseding Indictment Charging Conspiracy, Aggravated ID TheftRead the Press Release
ERIE, Pa. - Eighteen individuals from around the United States have been indicted by a federal grand jury in Erie on charges of conspiracy to commit wire fraud and aggravated identity theft, United States Attorney David J. Hickton announced today.
The thirteen-count superseding indictment named Doherty Kushimo, 53, of Providence, Rhode Island; Saburi Adeyemi, 57, of Memphis, Tennessee; Abiodun Bakre, 50, of Ozone Park, New York; Adetunji Gbadegeshi, 57, of Rosedale, New York; Adebola Mejule, 55, of Hempstead, New York; Michael Idowu Olugbade, 43; Xerxes Shevar, 47, of Brooklyn, New York; Gcobisa Kehle, 37, of Brooklyn, New York; Loyiso Kula, 43, of New York City; Abiodun Tijani, 44, of Staten Island, New York; Funmilayo Aliyu, 53, of Laurelton, New York; Bola Peters, 43, of New York City; Samuel Sobaloju, 52, of Far Rockaway, New York; Daniel Freeman, 49, of Danbury, Connecticut; Nana Baffour, 38, of Bronx, New York; Kwame Asamoah, 35, of Brooklyn, New York; Robert Wireko, 47, of Brooklyn, New York; and Alaire Sanya, 47, of Far Rockaway, New York, as defendants.
According to the indictment presented to the court, the eighteen defendants conspired to commit wire fraud by submitting fraudulent federal tax returns in the names of individuals whose identities the conspirators stole. The conspirators then opened bank accounts using stolen identities and used those accounts as repositories for their fraudulently obtained federal tax refunds. The conspirators obtained stolen identity information on the Internet and then traded that information among themselves using email accounts and other means of communication. All told, the indictment alleges that, for the tax years 2010 to 2013, approximately $38 million in fraudulent tax refunds was sought from the IRS by the conspirators, causing the IRS to pay at least $10 million in fraudulent refunds. The indictment also alleges that approximately 3,493 bank accounts were opened using stolen identities, affecting approximately 443 financial institutions, and that approximately 4,563 credit cards were obtained using stolen identities. Approximately 11,468 individuals are alleged in the indictment to have been victimized.
The law provides for a maximum total sentence of 20 years in prison for Saburi Adeyemi, Adetunji Gbadegeshi, Adebola Mejule, Michael Idowu Olugbade, Xerxes Shevar, Gcobisa Kehle, Loyiso Kula, Abiodun Tijani, Funmilayo Aliyu, Bola Peters, Samuel Sobaloju, Daniel Freeman, Nana Baffour, Kwame Asamoah, Robert Wireko, and Alaire Sanya. Doherty Kushimo faces 38 years in prison and Abiodun Bakre faces 36 years in prison. All eighteen defendants are subject to a maximum fine of $250,000 or twice the amount of loss to the victims. 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 defendants.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation 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.
16 February 2015
Eagle Butte Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on February 10, 2015, by U.S. District Judge Roberto A. Lange.
Lawrence Mexican, age 23, was sentenced to 42 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Mexican was indicted by a federal grand jury on September 16, 2014, for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. He pled guilty to the Assault with a Dangerous Weapon charge on November 18, 2014.
The conviction arose from a July 2014 incident in Eagle Butte, in which Mexican and two others unlawfully assaulted a victim with shod feet, metal crutches, and wooden clubs, with intent to do bodily harm to the victim.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Mexican was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
15 February 2015
Federal Bank Robbery Charges Filed Against Scranton ManRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania has announced that a 16 count Criminal Information has been filed against Francis McBride, age 27 of Scranton, Pennsylvania, charging him with bank robbery, attempted bank robbery and interference with commerce by threats or violence.
According to the United States Attorney Peter Smith, the Information alleges that from March through August 2014, McBride engaged in a series of attempted bank robberies and one successful bank robbery in Pennsylvania, New Jersey and New York. The Information also alleges that McBride robbed four gas stations/convenience stores in Scranton and Moosic. McBride was arrested in August 2014.
The investigation was conducted by the Scranton office of the Federal Bureau of Investigation and the Scranton Police Department. The case was prosecuted by Assistant United States Attorney Michelle Olshefski.
McBride faces a maximum penalty of 20 years’ incarceration and a $250,000 fine for each count in the Information.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
(Information)
13 February 2015
“Operation Check-Mate” Defendant Convicted in Federal Court in $800,000 Counterfeit Check SchemeRead the Press Release
PROVIDENCE, R.I. – A federal court jury on Thursday convicted Ernest Kar, 34, of Providence, with participating in a counterfeit check scheme that defrauded local banks of at least $800,000, announced by United States Attorney Peter F. Neronha; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; Warwick Police Chief Colonel Stephen M. McCartney; Providence Police Chief Colonel Hugh T. Clements, Jr.; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
The jury convicted Kar of one count of conspiracy to commit bank fraud and three counts of bank fraud. Kar faces statutory penalties of up to 30 years in federal prison and a fine of up to $1,000,000 on each count when he is sentenced by U.S. District Court Judge Mary M. Lisi on May 1, 2015. Kar is one of nine individuals charged in U.S. District Court in Providence or in Rhode Island state court for their participation in the fraudulent check-cashing scheme, which was dubbed “Operation Check-Mate.”
According to the government’s evidence presented at trial, between October 2010 and January 2014, Kar and his co-conspirators created counterfeit checks via computer, recruited account holders who agreed to have the fake checks deposited into their accounts in exchange for cash, and then made cash withdrawals from the accounts. Many of the counterfeit checks were drawn on the accounts of several legitimate businesses.
On December 16, 2013, during a joint federal and state law enforcement investigation into the fraudulent check scheme, Warwick Police discovered items used to create counterfeit checks, including check stock, a laptop computer, a printer and counterfeit checks, inside a motel room Kar was staying in and inside his vehicle. As a result of the investigation, including forensic examinations of the items seized by Warwick Police, a federal arrest warrant was issued for Kar. He was arrested in the Western District of Kentucky on April 28, 2014, and ordered detained and returned to Rhode Island.
Three co-defendants in this matter, Jerry Zeah, 25, Garty Togbasi, 28, and John Sumo, 28, all of Providence, previously pleaded guilty to conspiracy to commit bank fraud and each have been sentenced to 30 months in federal prison. A fourth co-defendant, Allarick Hill, 36, of Pawtucket, has pleaded guilty to conspiracy to commit bank fraud and is awaiting sentencing.
Four additional co-defendants in this matter have been or are being prosecuted on state charges in Rhode Island Superior Court.
The federal court cases are being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Sandra R. Hebert.
" Operation Check-Mate" was jointly investigated by the United States Secret Service, Warwick Police Department, Providence Police Department, and Rhode Island State Police.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Wisconsin Man Sentenced for Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wisconsin man charged with Assault by Striking, Beating, and Wounding pled guilty to and was sentenced on February 12, 2015, by U.S. District Judge Mark Moreno.
Craig Maskil, age 58, was sentenced to 12 months of supervised probation, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on July 11, 2014, when Maskil was working as a doctor at the Rosebud Indian Health Service Hospital on the Rosebud Sioux Indian Reservation. Maskil had a disagreement with another doctor at work, and he hit the victim in the head with his fists.
The investigation was conducted by the Federal Bureau of Investigation, the Rosebud Sioux Tribe Law Enforcement Services, and the Todd County Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Westerville Youth Coach Pleads Guilty to Creating Child PornographyRead the Press Release
COLUMBUS – Bryan W. Lehman, 50, of Westerville, Ohio pleaded guilty in U.S. District Court to creating child pornography.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Franklin County Sheriff Zach Scott, Westerville Police Chief Joseph Morbitzer and members of the Franklin County Internet Crimes Against Children Task Force announced the plea entered into today before Algenon L. Marbley.
According to court documents, investigators searched Lehman’s home after the IP address registered to Lehman was identified as a candidate for downloading child pornography. Upon executing their search warrant, investigators discovered an external hard drive containing numerous images of child pornography and child erotica.
Furthermore, a search of Lehman’s computers revealed approximately 25 homemade videos and 35 images of a minor female in various stages of undress. Lehman admitted to officers that the minor female was a relative and that he had used a cell phone attached to his belt to record the child – who he estimated was approximately 5-years-old at the time – without her knowledge.
A full forensic examination of Lehman’s hard drive revealed approximately 300 files of child pornography and approximately 600 files of child erotica.
Production of child pornography is punishable by a range of 15 to 30 years in prison.
Lehman served as a volunteer coach for the Westerville Youth Baseball and Softball League in the spring of 2014.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office Upper Arlington Police Department Grove City Police Department Columbus Police Department Grandview Heights Police Department Whitehall Police Department Hilliard Police Department Westerville Police Department Homeland Security Investigations U.S. Secret Service Ohio ICAC Franklin County Prosecutor's OfficeThis case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the members of the ICAC Task Force for the cooperative investigation, and Assistant U.S. Attorney Heather Hill and Special Assistant U.S. Attorney Jennifer Rausch, who are representing the United States in this case.
West Valley Man Sentenced to 151 Months in Federal Prison After Pleading Guilty to Enticing Minor to Engage in Illegal Sexual Activity and Distribution of Child PornographyRead the Press Release
SALT LAKE CITY - Robert Samuel Stark, age 48, of West Valley City will serve a 151-month federal prison sentence for coercion and enticement of a minor for illegal sexual activity and distribution of child pornography. U.S. District Judge Clark Waddoups imposed the sentence in federal court last week.
As a part of a plea agreement reached with federal prosecutors, Stark admitted that in August 2013, he engaged in online communications with Victim A, a 15-year-old female. During those communications, he requested and obtained sexually explicit images of Victim A. He also admitted that he met with Victim A and engaged in sexual activity.
Stark also admitted that in November 2013 and continuing into December 2013, he used the online social network Chathour to communicate with an undercover officer in Colorado who he believed to be a 14-year-old girl. Stark admitted that he asked the undercover officer he believed to be a 14-year-old girl to send sexually explicit images to him. Stark sent sexually explicit images of Victim A to the undercover officer.
The case started with an undercover investigation conducted by the Gilpin County Sheriff’s Office in Colorado. The investigation led Colorado officers to Stark and a referral was made to the Unified Police Department. The FBI also participated in the investigation. A UPD detective was able to identify the 15-year-old victim in the case. Law enforcement officers arrested Stark at Sugarhouse Park on Dec. 13, 2013. Stark came to the park expecting to meet Victim A and another 14-year-old girl for the purposes of engaging in illegal sexual activity.
Stark must forfeit an iPhone, a laptop computer, and a DVD player and memory card. Federal prosecutors sought forfeiture of the items that were used in the commission of the felony offenses.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Tyren Leeks, 41, of Portage, Indiana pled guilty to the felony offense of false claims on tax return. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by NCIS. Sentencing has been set for May 11, 2015. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
- Nathan Mougros, 26, of Michigan City, Indiana pled guilty to the felony offense of conspiracy to distribute heroin. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration. Sentencing has been set for May 14, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Gail Waymire, 58, of La Porte, Indiana was sentenced to 14 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of wire fraud. According to documents filed in this case, on or about July 23,2010, in the Northern District of lndiana, Waymire devised and intended to devise a scheme and artifice to defraud and to obtain money and property by means of materially false and fraudulent pretenses, representations, and promises, and for the purpose of executing the scheme and artifice to defraud and to obtain money and property by means of materially false and fraudulent pretenses, representations, and promises, knowingly transmitted and caused to be transmitted in interstate commerce, by means of wire communications, certain writings, signs, signals, and sounds. Specifically, Waymire was hired by Fort Wayne Public Television, Public Broadcast Station ("PBS"), in October 2009. Waymire was responsible for PBS's finances. PBS maintained a bank account in Indiana at Wells Fargo Bank, N.A, and she maintained bank accounts in Indiana at JP Morgan Chase Bank, N.A., and Three Rivers Federal Credit Union. Waymire understood that all transfers from PBS's account to any of her accounts were routed through computer servers in Texas. She used her position at PBS to commit fraud, obtaining funds to which she was not entitled. Waymire used several different methods to obtain this money. Regarding Count 1, on July 23, 2010, she received into my bank account a $8,975 deposit from PBS's bank account. She was not entitled to these funds, as they were generated by a false invoice she created to PBS. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
- Deandre Lee Mosley Walker, 18, of South Bend, Indiana was sentenced to 96 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of attempted arson. According to documents filed in this case, in early March 2014, Morgan offered to commit a violent crime for a confidential informant (“CI”) working for the government. Specifically, Morgan agreed to commit an arson on a vehicle that he believed belonged to a local drug dealer in exchange for a payment of $600 from the CI. Morgan enlisted Walker to help him with the arson. On March 11, 2014, Morgan said he would have his “deuce five” (.25 caliber firearm) with him to watch over Walker when the fire was being started and indicated he would fire shots off if necessary. Then, on March 13, 2014, the CI picked up Morgan and Walker in South Bend, Indiana and the two got into the CI’s vehicle. Morgan and Walker carried a red gas can with them. Morgan and Walker continued to make statements about their plan to burn a vehicle for cash payment. While driving, the CI learned that Walker was armed with a .25 caliber firearm. Morgan was aware that Walker carried the .25 caliber firearm. At approximately 8:33 PM, the CI pulled his vehicle into a convenience/gas station and Walker exited the vehicle with a red gas can and pumped gas into the container. Minutes later the CI’s vehicle left the gas station with Walker and Morgan and continued in the direction of the 300 block of Chestnut Street in South Bend, Indiana. While in route to the location of the vehicle, the CI paid Morgan $300.00 in cash as partial payment for the planned arson. In the 300 block of Chestnut Street in South Bend, Indiana, the target vehicle to be burned was parked. This vehicle was a 2013 Ford F-150 truck. This vehicle was involved in interstate commerce as the vehicle was regularly rented by a car rental company. At approximately 8:45 p.m. on March 13, 2014, Walker and Morgan exited the CI’s vehicle and began running down the street toward the location of the target vehicle. Agents intercepted the two and found Morgan to be in possession of the $300.00 in cash (ATF funds). Morgan was also in possession of a knife. Morgan was also found to have in his possession a gasoline-soaked paper wick. Walker was found to be in possession of a 5 gallon gasoline can containing an amount of gasoline, a Lorcin, model L25, .25 caliber pistol, loaded with .25 caliber ammunition, as well as a lighter. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
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- Robert Lutzka, 49, of Highland, Indiana pled guilty to the felony offense of possession of ammunition while under indictment. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for April 21, 2015. This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Roberta Butler, 32, of Valparaiso, Indiana was sentenced to 24 months’ probation after pleading guilty to the felony offense of conspiracy to commit mail fraud. According to documents filed in this case on December 18, 2013, the defendant was part of a group who staged automobile accidents in Northwest Indiana and Chicago and subsequently submitted false and fraudulent police reports and insurance claims for property damage. This case was the result of an investigation by the United States Postal Inspection Service. This case was prosecuted by Assistant United States Attorney Toi Denise Houston.
- Soulemayne Camara, 27, of Indianapolis, Indiana was sentenced to 15 months imprisonment and 1 year supervised release after pleading guilty to the felony offenses of access device (credit card) fraud and transportation of stolen goods through interstate commerce. All stolen property was recovered by the Hobart, Indiana Police Department and will be returned to rightful owners. The defendant has a hold from the Department of Homeland Security and upon release from the Federal Bureau of Prisons will be turned over to Immigration authorities for possible deportation proceedings. The investigation was conducted by the Hobart Police Department and federal law enforcement, including Homeland Security Investigations, United States Secret Service and the Internal Revenue Service.
- George Van Til, 67, of Merrillville, Indiana, the former elected Lake County, Indiana Surveyor, was sentenced to 18 months imprisonment with 3 years supervised release after pleading guilty to the 6 felony counts of wire fraud. According to documents filed in this case, between 2007, through 2012, Van Til used employees of the Lake County, Indiana, Surveyor’s Office to engage in political campaign activities while these employees were being paid with public tax dollars. At sentencing, the court determined that even though Van Til pled guilty, he should not receive a sentence reduction for acceptance of responsibility because Van Til directed an associate of his to disseminate to a third party, an FBI interview report of a potential government witness. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Philip Benson.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Jodeci Rowland-Smith, 21, of Fort Wayne, Indiana, Indiana pled guilty to the felony offense of being a convicted felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Federal Bureau of Investigation, and the Fort Wayne Police Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Nathaniel C. Henson.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Alejandro Montoya, 46, of San Bernadino, California was sentenced to 70 months imprisonment with 2 years supervised release, and forfeiture of $79,705 U.S. currency after pleading guilty to the felony offense of conspiracy to distribute and possession with the intent to distribute cocaine. According to documents filed in this case, from on or about November 8, 2010, and continuing to on or about April 13, 2011, defendant conspired to distribute and possess with intent to distribute 5 kilograms or more of cocaine. This case was the result of an investigation by the Federal Bureau of Investigation, Fort Wayne Safe Streets Task Force, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force, and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Stefanie Redfern, 26, of Fort Wayne, Indiana was sentenced to one year probation after pleading guilty to the felony offense of maintaining a drug-involved premise. According to documents filed in this case, from on or about May 2011, and continuing to on or about August 2011, Redfern, knowingly and intentionally profited from and otherwise made available for use, with and without compensation, an apartment for the purpose of unlawfully storing and distributing LSD and MDMA. This case was the result of an investigation by the Department of Homeland Security, United States Postal Inspection Service, Drug Enforcement Administration, Fort Wayne Police Department, Indiana State Police and the Allen County Police Department. This case was prosecuted by Assistant United States Attorney Tina L. Nommay.
- Henry Purifoy, 24, of Fort Wayne, Indiana was sentenced to 57 months imprisonment with 1 year supervised release after pleading guilty to the felony offense of being a convicted felon in possession of a firearm. According to documents filed in this case, on or about February 23, 2014, Purifoy, a previously convicted felon, knowingly possessed a firearm. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
Washington Man Sentenced for Conspiracy to Distribute DrugsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Washington man charged with Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance pled guilty to and was sentenced on February 9, 2015, by U.S. District Judge Roberto A. Lange.
Bruce Gerald Cole, age 47, was sentenced to 60 months in custody, to run concurrent with sentences imposed in federal court in Nevada and state court in New Hampshire, 2 years of supervised release, and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place in the spring of 2009, when Cole directed a shipment of high-grade marijuana from Washington State across the United States. Cole directed couriers to drive his vehicle, which was loaded with two duffel bags containing approximately 22.67 kilograms of high-grade marijuana, a canister containing 61.5 grams of heroin, and two firearms. Cole planned to fly to Michigan to rendezvous with the couriers and his vehicle. He would then sell the shipment himself, thus keeping the couriers out of the business transaction. Cole said he planned to use the firearms for his personal protection during the drug transaction and the heroin was for his personal use. On May 27, 2009, South Dakota Law Enforcement intercepted the vehicle, couriers, heroin, and firearms.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the South Dakota Highway Patrol, the Drug Enforcement Administration, and several law enforcement agencies in the state of Washington. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Cole was remanded to the custody of the U.S. Marshals Service.
Vice President Biden and Attorney General Holder Honor Fallen Senior Special Agent John Francis Capano and Former Chief John Curly with Medal of ValorRead the Press Release
At a ceremony earlier this week in Washington, Vice President Joe Biden and Attorney General Eric Holder awarded the Public Safety Officer Medal of Valor to several individuals, including fallen Senior Special Agent John Francis Capano, Bureau of Alcohol, Tobacco, Firearms and Explosives, and former Chief John Curly, Bellmore Fire Department, who exhibited exceptional courage in saving and protecting others and whose heroic actions were above and beyond the call of duty.
Agent Capano received the award for his heroic actions Dec. 31, 2011, during an armed robbery attempt at Charlie’s Family Pharmacy in Seaford, N.Y., by a convicted felon who had recently been released from prison. Agent Capano, who was off duty at the time, confronted the suspect, chased him outside, and engaged in a physical struggle for his gun. An off-duty New York City police officer and a retired Nassau County police officer also responded to the scene. Special Agent Capano was struck by a bullet to his chest and was later pronounced dead at an area hospital. The suspect was also shot and died at the scene.
On Nov. 12, 2012, the Bellmore Fire Department was alerted to a house fire with a victim trapped inside. Former Chief Curley (who remains a member of the Bellmore Fire Department) and his son, in a fire department pick-up truck nearby, heard the call and were first on the scene. A man in the driveway said his elderly mother was trapped in a second-floor bedroom. With no fire vehicles on the scene, former Chief Curley used a file cabinet topped by an old broken wooden ladder to climb to the bedroom window, breaking it with his bare hands, which exposed him to heavy black smoke billowing from the room. Because the first responders had not yet arrived, he was without the protection of a hose line, breathing apparatus, or protective gear. Nevertheless, former Chief Curley entered the room knowing that he had only a few seconds before it would be totally engulfed in fire. Once inside, he found the woman lying unconscious inside the room. Former Chief Curley moved the woman to the window, lifted her out onto the wooden ladder, carried her, and passed her down to his waiting son, who began to give her medical attention. During the rescue, former Chief Curley suffered lacerations to his hands and face, taking actions at extreme risks to his personal safety, which directly resulted in saving the life of the trapped woman.
United States Attorney Lynch stated, “Agent Capano and former Chief Curly are shining examples of the selflessness and dedication of all our public safety officers, who risk all every day to protect us. They stand shoulder to shoulder with the other heroes honored in this ceremony. We honor them and we thank them.”
Attorney General Holder added, “These are all exceptional individuals. Every one of them deserves our deepest gratitude and boundless respect. Yet even among the outstanding field of public servants who perform these critical responsibilities, day in and day out – in communities across the country – there are some who stand out. And, with these prestigious medals, we recognize these exceptional few for extraordinary valor – above and beyond the call of duty.”
The Public Safety Officer Medal of Valor, authorized by the Public Safety Officer Medal of Valor Act of 2001, is the highest national award for valor presented to a public safety officer. The medal is awarded to public safety officers who have exhibited exceptional courage, regardless of personal safety, in the attempt to save or protect human life. A total of 95 medals have been presented since the first recipients were honored in 2003.
The Medal of Valor is awarded by the President of the United States, or his designee, to public safety officers cited by the Attorney General. Public safety officers are nominated by the chiefs or directors of their employing agencies and recommended by the Medal of Valor Review Board. The Attorney General has designated the U.S. Department of Justice’s Office of Justice Programs (OJP) to serve as the federal point of contact for the Public Safety Medal of Valor.
More information about the award, the Medal of Valor Review Board members, and the nomination process is available at www.ojp.usdoj.gov/medalofvalor.
Two Southern Illinois Residents Charged with Child Pornography OffensesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that two southern Illinois residents were charged and appeared in Court today on child pornography offenses alleged to have occurred in Perry and Williamson Counties. Aaron Michael Amann, 25, of DuQuoin, Illinois and Collin A. Smith, 31, of Cambria, Illinois, were charged in separate cases with using a computer to access and download child pornography images from the internet.
The offenses carry a maximum penalty of at least 30 years imprisonment, a $250,000 fine and a lifetime of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigations in these cases were conducted by the Secret Service Southern Illinois Cyber Crimes Task Force, The United States Marshals Service, the Franklin County Sheriff’s Department, the Benton, Illinois, Police Department, the DuQuoin, Illinois, Police Department and the Cambria, Illinois, Police Department.
The cases are being prosecuted by Assistant United States Attorney Thomas E. Leggans.
Two Odenton Men Plead Guilty in Scheme to Force Women into ProstitutionRead the Press Release
Baltimore, Maryland – Robert Downing, a/k/a “Luck,” and “Shamrock,” age 46, and Michael Wesley Lee, a/k/a “King,” or “King P,” age 31, both of Odenton, Maryland, pleaded guilty today to use of an interstate facility to promote a prostitution business. Lee also pleaded guilty to conspiring to commit sex trafficking by force and fraud.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation and Anne Arundel County Police Chief Tim Altomare.
According to their plea agreements, from at least 2012 to his arrest in August 2013, Lee was a pimp who used social media websites to entice females to prostitute for him. Downing worked for Lee. The defendants used the internet to recruit women to work as prostitutes, and to advertise sex services. The defendants rented hotel rooms to house the women and to serve as a place to prostitute, which they paid for with prepaid gift and debit cards.
More specifically, after Lee had transported a female, “J,” from New York to prostitute in Maryland, on February 23, 2013, Lee and Downing accompanied “J” to a casino in Anne Arundel County. The defendants are seen on video cameras watching “J” unsuccessfully solicit prostitution customers in the casino. At some point, Downing left the casino; and later, Lee and “J” also left. The two walked to Lee’s car in the casino’s garage. Video cameras recorded Lee yelling and scolding the woman, and then striking her head repeatedly with a closed fist. Lee grabbed her by the hair and ripped off her wig, and violently shoved her when she tried to shield her body against the car. Police arrived and arrested Lee. Downing arrived at the scene and took “J” back to his home. On February 25th, Downing drove “J” to a local hotel so that she could earn money by prostituting – money that would help pay Lee’s bail. “J” escaped when Downing left briefly. Ultimately, “J” refused to press charges, and the assault charges were dismissed against Lee a few months later.
Also in August 2013, Lee used a social media website to lure a woman, “S,” from St. Louis, Missouri to Baltimore to prostitute. Lee bought a bus ticket for “S,” who arrived in Baltimore on August 10. When Lee picked her up at the bus station, he told her that he was a pimp. He took “S” to a hotel in Linthicum Heights, Maryland and demanded her identification card. “S” was intimidated by Lee’s size and demeanor, so she gave him her identification card and worked as a prostitute. Lee told her that she needed to reimburse him for the bus ticket and that she had to pay a $1,000 initiation fee. He transported “S” from Maryland to New Jersey to prostitute. After two weeks of working for Lee as a prostitute, “S”, who wanted to get away, called an ambulance on August 26, 2013, regarding pain she was having in her vaginal area, and reported her situation to the EMTs upon their arrival. Lee was arrested that day.
In August 2013, Lee tried to persuade “M,” an exotic dancer in Baltimore, to prostitute for him. “M” agreed to meet Lee at a hotel room believing that she was going to dance at a private party. When Lee attempted to prostitute her, she tried to leave the room, but Lee stopped her. Subsequently, “M” overheard Lee on the phone with a man who Lee said was from Florida and was driving up to meet “M.” “M” became scared about being made to have sex or being taken out of state. “M” contacted her friends by text message and her father ultimately called 911. At the same time, “M” devised a plan whereby she told Lee she was thirsty. When Lee gave her money to get a soda in a nearby vending machine, “M” began running away from the hotel. She heard Lee running behind her. Lee chased her until she was able to hop a fence behind the hotel. By the time the police arrived at the hotel as a result of the 911 call, “M” was already safe.
After Lee was arrested on August 26, 2013, Downing began pimping “MS” for Lee while Lee was in jail. Lee had previously lured “MS” to engage in prostitution and had transported her to Ocean City to prostitute. At the time of Lee’s arrest, “MS” was in the hospital being treated for a serious medical condition. Downing picked “MS” up from the hospital upon her discharge in September and immediately installed her at a hotel. “MS” and Downing traveled to New York and New Jersey so that “MS” could prostitute. At times, Downing drove “MS” to methadone clinics for treatment.
As part of his plea to sex trafficking by force, Lee must register as a sex offender in the place where he resides and where he is an employee under the Sex Offender Registration and Notification Act (SORNA).
The defendants and the government have agreed that if the Court accepts the plea agreement, Lee will be sentenced to 13 years in prison followed by five years of supervised release, and Downing will be sentenced to 46 months in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 30, 2015.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Patricia A. McLane, who are prosecuting the case.
Two Cousins Sentenced to Prison Terms for Armed Robberies on Christmas Eve and Christmas 2012Quick Police Work Led to ArrestsRead the Press Release
WASHINGTON – Floyd Long was sentenced today to 19 ½ years in prison and his cousin, Alonzo Ferrell, was sentenced to a 15-year prison term for carrying out a series of four armed robberies in Northwest and Northeast Washington on Christmas Eve and Christmas of 2012, U.S. Attorney Ronald C. Machen Jr. announced.
Long, 23, of Washington, D.C., and Ferrell, 23, of Capitol Heights, Md., were found guilty by a jury in November 2014 of conspiracy, armed robbery, receiving stolen property, fleeing law enforcement, and various weapons offenses. The verdicts followed a trial in the Superior Court of the District of Columbia. They were sentenced by the Honorable John McCabe. Following their prison terms, both will be placed on five years of supervised release.
According to the government’s evidence, Long and Ferrell, together with two accomplices, obtained four handguns and a stolen car, and then conspired to commit armed robberies in the District of Columbia. At about 11:15 p.m. on Christmas Eve 2012, the four men drove into darkened residential streets looking for potential robbery victims.
At around 11:15 p.m., they robbed their first victim at gunpoint in the 200 block of Hamilton Street NW, taking from him an iPhone and an iPad. Next, they drove to the unit block of Webster Street NE, and robbed their second victim at gunpoint, obtaining a cellphone and $160. They then drove to the 600 block of Jefferson Street NE, and found their third victim bringing gifts into his home. They put guns to his head, and robbed him of $3 and a cell phone. They committed their fourth robbery at about 12:12 a.m. on Christmas Day, in the 1700 block of Varnum Street NE. This last victim initially resisted, but the men assaulted him and took his wallet, which contained $15.
Long, Ferrell and their accomplices were spotted in their stolen car a short while later, in the 5600 block of Central Avenue SE. They initially fled from police, but after a brief pursuit, Long and Ferrell were apprehended.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the FBI’s Cellular Analysis Survey Team. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator John Marsh; Paralegal Specialists Lynette Briggs and Debra McPherson; Litigation Technology Specialist Leif Hickling; Victim/Witness Advocate James Brennan; Victim/Witness Security Specialist David Foster; Assistant U.S. Attorneys Natalia Medina, Laura Coates, and Danny Nguyen, and former Assistant U.S. Attorneys Britain Shaw and Trevor McFadden. Finally, he commended the work of Assistant U.S. Attorney Demian S. Ahn, who investigated and prosecuted the case.
15-021Timber Lake Man Charged with Third Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Timber Lake, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary.
Chapen Kraft, age 18, was indicted on February 11, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 13, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September 15 and October 11, 2014, Kraft unlawfully entered and remained in a barn and storage building near Timber Lake, with the intent to commit a larceny.
The charge is merely an accusation and Kraft is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Dewey County Sheriff’s Office. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Kraft was released on bond pending trial. A trial date has not been set.
Three MS-13 Members Sentenced to Prison for a Gang-Related Murder and Shooting in the Atlanta AreaRead the Press Release
Three MS-13 gang members were sentenced today to federal prison for violent crimes that they committed on behalf of the gang, including the 2006 murder of a rival gang member and 2008 shooting of a teenage boy, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney John A. Horn of the Northern District of Georgia.
Miguel Guevara, aka Blacky, 31, of Fort Walton Beach, Florida; Irvin Mejia Cruz, aka Triste, Lil Triste, 24, of Duluth, Georgia; and Walter Aldana, aka Goofy, 24, of Norcross, Georgia, were sentenced to 30 years in prison, nine years in prison, and 10 years in prison, respectively. U.S. District Judge Richard W. Story of the Northern District of Georgia imposed the sentences. The defendants each pleaded guilty in October 2013 to RICO conspiracy, and Guevara also pleaded guilty to using a firearm in relation to the commission of a crime of violence.
According to admissions made in connection with the defendants’ guilty pleas, the charges and other information presented in court, Mara Salvatrucha 13, or MS-13, is an international gang that originated in El Salvador and Honduras and spread to the United States. MS-13 members are organized into regional “cliques” within the larger gang. Each clique has a leader, often referred to as “the first word,” who conducts weekly meetings. At these meetings, members discuss their crimes and their plans to retaliate against rival gang members. The clique leaders collect dues from the gang members, which they use to buy guns and post bail for jailed gang members. Clique leaders often send money back to MS-13 leaders in their home countries, and report back to the same leaders about the clique’s activities on behalf of the gang.
MS-13 has operated in the greater Atlanta area since at least 2005. The gang staked out Gwinnett and DeKalb Counties as their home territory, where they committed murders, attempted murders and armed robberies, among other crimes.
According to admissions in connection with his guilty plea, Guevara was a member of MS-13, but in 2006, he decided to become less active in the gang and sought permission to “calm down” from the leader of his clique, Miguel Alvarado-Linares, aka Joker. Alvarado-Linares discussed this with other members at a meeting of the clique on Dec. 23, 2006, and the other gang members agreed that Guevara would have to shoot at a suspected rival gang member before he could become inactive. Guevara admitted that he and other gang members went to a nightclub in the early morning hours of Dec. 24, 2006 to hunt for rival gang members. Guevara admitted that he saw two rival gang members walk out of the night club and get into a car. Guevara and the other MS-13 members then followed the rival gang members. As the rival gang members exited the freeway, the MS-13 gang members pulled alongside, and Guevara fired multiple shots at the rival gang members. Guevara killed one of the gang members and wounded the other.
In connection with their guilty pleas, Cruz and Aldana admitted that they belonged to the same MS-13 clique. They further admitted that Mejia Cruz advised Aldana to shoot someone if he wanted to earn more respect within MS-13, and, on Aug. 21, 2008, Mejia Cruz gave Aldana a gun for the task. Aldana admitted that he left Mejia Cruz’s house with the gun, and encountered a group of teenagers, some of whom were playing basketball. Aldana challenged the teenagers, “Who do you claim,” asking to which gang they claimed allegiance. He then started firing into the crowd and struck a 14 year-old boy in the back. Aldana called out “Mara Salvatrucha” as he fled on foot. He later returned the firearm to Mejia Cruz.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, FBI, Gwinnett County Police Department and DeKalb County Police Department. The case was prosecuted by Trial Attorney Joseph K. Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Paul R. Jones of the Northern District of Georgia.
Third Defendant Pleads Guilty to Growing Marijuana Plants in the Shasta-Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — Ricky Martin Huerta, 20, resident of Eureka, pleaded guilty today to manufacturing marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 30, 2014, aerial surveillance observed a large marijuana cultivation operation near Big French Creek on the Shasta-Trinity National Forest. On August 5, 2014, authorities raided the Big French Creek site. They located an active marijuana cultivation operation and counted a total of 7,980 growing marijuana plants. Authorities observed defendant Huerta walking from the marijuana garden toward a marijuana processing area. After spotting law enforcement, Huerta ran away down a hill and was apprehended.
This case was the product of an investigation by the United States Forest Service, the Humboldt County Drug Task Force, North State Marijuana Team, and the Trinity County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
On January 16, 2015, co-defendants Isidro Alcazar-Tapia and Arturo Alcazar-Tapia pleaded guilty to conspiracy to manufacture marijuana and to depredation of public lands and resources. Both are in custody. A fourth co-defendant, Victor Manuel Alvarez-Contreras, is at large.
Huerta is scheduled to be sentenced by Judge Garland E. Burrell, Jr. on May 1, 2015. Huerta faces a maximum statutory penalty of 20 years in prison and a $1,000,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Texarkana Man Sentenced to over Six Years for Being A Felon in Possession of A FirearmRead the Press Release
Texarkana, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Christopher Demarkus Nard, aka Joseph Nard, aka “Killa Chris”, age 29, of Texarkana, Texas, was sentenced today to 75 months in prison followed by three years of supervised release for being a Felon in Possession of a Firearm. The Honorable Harry F. Barnes presided over the sentencing hearing in the United States District Court in Texarkana.
U.S. Attorney Eldridge commented, “Felons in possession of firearms have no place in our communities as they pose a serious threat of harm to our police officers and citizens. Our office, along local, state, and federal law enforcement, will continue to relentlessly investigate and prosecute these types of cases in order to keep communities throughout the Western District of Arkansas safe from senseless violence.”
According to court records, on September 19, 2013, after receiving information that Nard was selling methamphetamine from a hotel room in Texarkana, Arkansas, detectives with the Bi-State Narcotics Task Force began conducting surveillance of the hotel room they believed Nard was located. Detectives were able to observe numerous vehicles arriving at Nard’s hotel room and leaving after a short time. Based on this suspicious behavior, detectives chose to conduct traffic stops of vehicles after they departed from Nard’s hotel room. Methamphetamine and/or other narcotics were obtained from at least four of these vehicles. Following arrests, some of the defendants stated to the detectives that they had purchased the illegal drugs from Nard at his hotel room. Detectives then made contact with Nard to speak with him concerning their investigation after observing him leave his hotel room. As a result of that contact, Nard was arrested for possession of marijuana. After detectives informed Nard that he had been under surveillance, they asked for consent to search his hotel room that he was sharing with his girlfriend. Nard signed a consent form for detectives to search his room, and explained that he was responsible for any illegal items found in the room. During the search of the room, detectives found two electronic scales, methamphetamine residue, baggies, and a loaded, semi-automatic FIE, model E28, .25 caliber pistol hidden in the coffee maker under the sink, which detectives were later able to confirm had traveled in interstate commerce. After being booked for possession of marijuana, during a post-Miranda statement, Nard admitted to detectives that he owned the handgun and was selling methamphetamine from his hotel room to two of the men previously arrested immediately after leaving Nard’s hotel room. Nard was prohibited from possessing a firearm, as he had a previous felony conviction for Delivery of a Controlled Substance, Cocaine, punishable by imprisonment exceeding one year. A Federal Grand Jury issued an indictment for Nard on October 30, 2013, and Nard pleaded guilty to one count of being a Felon in Possession of a Firearm on August 15, 2014.
This case was investigated by the Bi-State Narcotics Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jonathan Ross prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Takini Man Sentenced for Abusive Sexual Contact with A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a Takini, South Dakota, man convicted of Abusive Sexual Contact with a Child was sentenced on February 11, 2015, by U.S. District Judge Roberto A. Lange.
Reginald Between Lodges, a/k/a Reginald Condon, a/k/a Reggie Kills A Hundred, age 62, was sentenced to 36 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Between Lodges was indicted by a federal grand jury on June 10, 2014, for Aggravated Sexual Abuse of a Child. He pled guilty to Abusive Sexual Contact with a Child on November 18, 2014.
The conviction arose from an incident that occurred in October 2013, in Takini, when Between Lodges engaged in intentional, offensive touching of the victim, an 8-year-old child.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Between Lodges was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Statement by Attorney General Holder on Murders in Chapel Hill, North CarolinaRead the Press Release
Attorney General Eric Holder released the following statement Friday regarding the tragic killings of three university students this week in Chapel Hill, North Carolina:
“Like all Americans, I was shocked and saddened by this week’s heinous murders of three young people in Chapel Hill, North Carolina. I join President Obama in offering my deep sympathies to the friends and loved ones of Yusor Mohammad Abu-Salha, Deah Shaddy Barakat, and Razan Mohammad Abu-Salha.
“In addition to the ongoing local investigation, I have made available the full resources of the Department of Justice to help ensure that justice will be served in this case. The Department’s Civil Rights Division and the FBI, along with the U.S. Attorney’s Office for the Middle District of North Carolina, have opened a parallel preliminary inquiry to determine whether any federal laws, including hate crime laws, were violated.
“Protecting the safety and securing the civil rights of everyone in this country is, and must always remain, a top priority for today’s Department of Justice. We will never waver in this commitment. And going forward, we pledge to stand with the families of these three remarkable young people – and with all whose lives were touched by this tragedy – as they begin the long road to healing.”
St. Louis County Man Indicted on Attempted Arson ChargeRead the Press Release
St. Louis, MO – ANTONIO WHITESIDE, St. Louis County, Missouri, was indicted in connection with the attempted arson of the Ferguson Supermarket, Inc. on November 24, 2014.
Whiteside was indicted by a federal grand jury on February 11 on one felony count of attempt to damage and destroy by means of fire and/or explosive materials. Whiteside was taken into custody late Thursday evening.
"The St. Louis County Bomb and Arson Unit and agents with ATF have been working on multiple criminal investigations in the aftermath of the Ferguson rioting. This indictment is but one result of that collaboration, which is an ongoing effort, and I expect will produce additional indictments at both the state and federal level," said U.S. Attorney Richard Callahan.
If convicted, this charge carries a maximum penalty of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
INDICTMENT
St. Croix Man Pleads Guilty to Manufacture of MarijuanaRead the Press Release
St. Croix, USVI – Luke Lubrin, 46, of St. Croix, pleaded guilty today in District Court on St. Croix to one count of manufacture of marijuana, United States Attorney Ronald W. Sharpe announced.
According to the plea documents filed in court, Lubrin was growing marijuana plants on his property in Frederiksted. On June 26, 2014, members of the U.S. Drug Enforcement Administration (DEA) seized 58 marijuana plants from Lubrin’s property. Lubrin admitted that the plants were his and that he grew them.
Lubrin is facing a maximum sentence of five years in prison, and a $250,000 fine. U.S. Magistrate Judge George W. Cannon scheduled the sentencing for June 18, 2015.
The case was investigated by the DEA, and is being prosecuted by Assistant U.S. Attorneys Alphonso Andrews and Rami S. Badawy.
Settlement Reached in Murder-For-Hire LitigationRead the Press Release
CONTACT: Peggy McFarland
PHONE: (716) 843-5877
FAX: (716) 551-3051
BUFFALO, N.Y. - United States Attorney William J. Hochul, Jr. announced today that a stipulation and settlement agreement had been entered between with Randall Delbert Knight and approved by the Honorable William M. Skretny, Chief United States District Judge for the Western District of New York.
In 2010, Knight pleaded guilty before the Chief Judge Skretny to interstate murder-for-hire, for his July 3, 1994, murder of Andie Gasper, in the Town of Yorkshire in Cattaraugus County. Prior to stabbing Mr. Gasper to death, Knight and the victim’s wife, Cheryl Gasper, discussed murdering him in order that they might share in the proceeds of his life insurance policy. In furtherance of those discussions, Knight and Cheryl Gasper communicated using facilities of, and travelled in, interstate commerce between their respective residences in the States of Ohio and New York. Prior to his prosecution in federal court, Knight, in 1995, had been tried and acquitted for the murder in New York State Court. Following his 2010 federal plea of guilty, which also contained an agreement from the State of Ohio that he would not face prosecution in Ohio for his murder of Gasper, Knight was sentenced principally to a term of imprisonment of 288 months.
After he was sentenced, Knight claimed that the attorney who represented him at the time of his plea in federal court was deficient in that the attorney failed to raise and consider, prior to his plea of guilty, a potential statute of limitations defense. The defense could have been based on the fact that the statute to which Knight pled guilty was governed by a five (5) year statute of limitation period as of the date of the homicide. The law was amended, after the homicide, on September 13, 1994, with such amendment arguably removing the statute of limitation period.
While Chief Judge Skretny originally rejected Knight’s statute of limitation claim, the Second Circuit Court of Appeals, following an appeal by Knight, sent the case back to Chief Judge Skretny for further consideration. In so doing, the Court of Appeals observed that the Solicitor General’s Office, in a brief filed in an unrelated case before the United States Supreme Court, had adopted the position that the Department of Justice no longer believed that the 1994 amendment to the murder-for-hire statute—the same statute to which Knight had pled guilty—extended the statute of limitations applicable to offenses committed before that date. As a result, the government was effectively precluded from defending the very argument relied upon by Chief Judge Skretny in rejecting Knight’s claims.
On remand, Judge Skretny, beginning last month, commenced a fact finding hearing. The United States was represented at that hearing by First Assistant United States Attorney James P. Kennedy, Jr. and Criminal Chief Joseph M. Guerra, III. During the course of the hearing, Knight, in addition to his statute of limitation claim, also asserted that his prior attorney was deficient for failing to raise and consider, before his earlier plea of guilty, whether Knight, in fact, could have been subject to prosecution in the State of Ohio for his killing of Andie Gasper.
At the hearing, Knight’s current attorney cross-examined his former attorney over the course of three days. The hearing also included testimony from a federal prosecutor who handled the matter at the time of plea, and Knight himself.
The stipulation and settlement agreement approved by Chief Judge Skretny calls for Knight to be sentenced to 168 months imprisonment. Knight will terminate all litigation seeking to attack his prior conviction and judgment.
United States Attorney Hochul stated that today’s stipulation “ensures that a confessed murderer, having previously been acquitted in State court, will not escape prosecution based upon the claimed deficiencies of his prior attorney. More than 20 years after their son and brother was ruthlessly murdered, the Gasper family will hopefully find some peace knowing that they will not have to hear from Mr. Knight ever again.”
Rosebud Man Acquitted of Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man was acquitted of Sexual Abuse as a result of a federal jury trial in Pierre, South Dakota. The verdict was returned on February 11, 2015.
Anthony Fast Horse, age 55, was indicted by a federal grand jury on March 13, 2012. The charges related to the alleged sexual abuse of a victim at Rosebud.The investigation was conducted by the Federal Bureau of Investigation and the U.S. Attorney's Office prosecuted the case.
Rio Rancho Man Pleads Guilty to Federal Heroin Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Mark Herrera, 29, of Rio Rancho, N.M., pleaded guilty this morning in federal court to heroin trafficking and firearms charges under a plea agreement with the U.S. Attorney’s office.
Herrera was arrested in Aug. 2014, on a criminal complaint after law enforcement officers executed a federal search warrant on his vehicle and residence and found more than seven ounces of heroin, marijuana, approximately $5,000.00 in cash, firearms and ammunition, and drug paraphernalia. The officers also seized a semi-automatic pistol and ammunition during the search. During a post-arrest statement, Herrera allegedly told the officers that he sold six to eight ounces of heroin to others every two to three days, and that he possessed the firearm for protection.
During today’s proceedings, Herrera pled guilty to a two-count felony information charging him with being a felon in possession of a firearm and ammunition and possession of heroin with intent to distribute. In entering the guilty plea, Herrera admitted that on Aug. 1, 2014, law enforcement officers searched his vehicle and residence and seized seven ounces of heroin, drug paraphernalia, $5,000.00 in cash, and a loaded semi-automatic pistol. At the time of the arrest, Herrera was prohibited from possessing firearms or ammunition because he previously had been convicted of robbery and escape in Colorado.
At sentencing, Herrera faces a statutory maximum penalty of ten years in prison for the firearms charge and a statutory maximum penalty of 20 years in prison on the heroin trafficking charge. Herrera remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque offices of the ATF and the DEA and the Rio Rancho Police Department. Assistant U.S. Attorney Presiliano Torrez is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Reoffender Sentenced to 85 Months in Prison for Distributing Methamphetamine and Violating Terms of Suspended SentenceRead the Press Release
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Jose Luis Martinez, age 37, of Rogers, was sentenced today to 70 months imprisonment and three years of supervised release on one count of Distribution of Methamphetamine plus 15 months imprisonment for violating the terms of his previous suspended sentence. The sentencing took place before the Honorable Timothy L. Brooks in the United States District Court for the Western District of Arkansas in Fayetteville.
U. S. Attorney Eldridge commented, “This defendant was previously imprisoned for a drug trafficking offense and was still on supervised release when he committed this criminal act. Those that continually violate the law by participating in this illicit activity put our communities at risk and demonstrate a lack of respect for both the justice system and society in general. We will continue to aggressively prosecute these types of cases and hold those involved accountable.”
According to court records, in May, 2014, during the course of an ongoing investigation by the Drug Enforcement Administration, agents arranged for a controlled purchase of one and one-half ounces of methamphetamine from Martinez. The transaction was to take place at Jose Martinez Tile and Granite in Rogers, a business owned by Martinez. Agents set up surveillance and observed as Martinez was handed $2100.00 in U.S. currency in exchange for the suspected methamphetamine. The suspected mixture was sent to the Drug Enforcement Administration’s South Central Laboratory where it tested positive for methamphetamine. Martinez pleaded guilty to the charge on September 11, 2014. At the time of his arrest, Martinez was on supervised release for a previous drug trafficking offense that occurred in June, 2008.
This case was investigated by the Drug Enforcement Administration and the Benton County Sheriff’s Office. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Registered Sex Offender Sentenced to 40 Years in Prison for Producing Child PornographyRead the Press Release
Two Others Also Sentenced in Separate Cases
ASHEVILLE, N.C. – On Thursday, February 12, 2015, U.S. District Judge Martin Reidinger sentenced Kieron Mann, 45, of Hendersonville, N.C. to 40 years in prison on production of child pornography charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Mann was ordered to serve a lifetime of supervised release, to continue to register as a sex offender, and to pay $50,000 as restitution to his victims.
Ryan L. Spradlin, Acting Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Sheriff Charles McDonald of the Henderson County Sheriff’s Office join U.S. Attorney Tompkins in making today’s announcement.
“After receiving a lead from our Cyber Crimes Center about the suspected distribution of child pornography by this defendant, who is a registered sex offender, HSI special agents in Hendersonville were able to determine he was in fact producing child pornography with a very young child and was sexually abusing two other children,” said ICE/HIS Acting Special Agent in Charge Spradlin. “Thanks to the hard work of HSI and the Henderson County Sheriff’s Office, not to mention an aggressive prosecution by the U.S. Attorney’s Office, this monstrous child predator will never again have an opportunity to abuse another innocent victim.”
“The safety and security of the children in our communities is paramount. Through the efforts of agents from the Department of Homeland Security and deputies of the Henderson County Sheriff’s office, families affected by this vile predator can rest more comfortably knowing their children will never be harmed by Mr. Mann again,” said Sheriff McDonald.
In May 2014, Mann pleaded guilty to one count of production of child pornography. According to court documents and statements made in court, law enforcement executed search warrants at Mann’s residence, and seized his computers and cellular phones. A forensic examination of the seized items revealed that they contained images and videos of child pornography, which Mann had produced. Mann is a registered sex offender, which stems from his 1996 federal conviction for receiving child pornography. At today’s hearing, Mann’s sentence was enhanced because of his criminal history. Mann has been in federal custody March 2014. The case was prosecuted by HSI and Henderson County.
Judge Reidinger also sentenced today Tabatha Dianne Black, 35, of Bakersville N.C., to 210 months in prison and a lifetime of supervised release. According to court records, from May to June 2012, in Yancey County, Black did entice and coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of it which she then distributed. Black pleaded guilty in June 2014 to one count of production of child pornography and has been in federal custody since April 2014. The case was prosecuted by HSI, the State Bureau of Investigation, and the Yancey County Sheriff’s Office.
Judge Reidinger sentenced a third defendant today on child pornography charges. Jonathan Michael Whisnant, 42 of Easley, S.C. was sentenced to 78 months in prison and to a lifetime of supervised release. According to court records, in January 2014 in Polk County, Whisnant received and possessed images depicting child pornography. Whisnant pleaded guilty in June 2014 to one count of possession of child pornography and one count of receipt of child pornography. He has been in federal custody since April 2014. The case was prosecuted by HSI.
U.S. Attorney Tompkins thanked all the law enforcement agencies that investigated these cases for their outstanding work and said, “My Office and our law enforcement partners will not allow child predators to victimize innocent children. We will find and prosecute those who prey upon the most vulnerable members of our communities.”
The defendants will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Raymond Man Sentenced for Mail FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that United States District Judge John M. Gerrard sentenced Gerald C. Bryce, age 50 of Raymond, Nebraska, to 18 months imprisonment, to be followed by a 3 year term of supervised release following his earlier guilty plea to mail fraud.
Bryce had been an insurance agent and in that capacity would collect premium payments from customers to be sent to the insurance company providing the customers’ coverage. One couple found that their life insurance policies lapsed because Bryce had not forwarded the money he had collected to the insurance companies. In 2011 they had paid him $259,167.19 for premiums for life insurance policies that had lapsed. The failure to forward the payments was not immediately discovered as Bryce had the information from the insurance companies mailed to him. After learning of the lapsed policies, the victims filed a civil suit and, as part of a settlement in that case, Bryce did pay some of the monies he stole.
In 2010, Bryce defrauded another couple of $41,983.55, by telling them to withdraw the cash value of a life insurance policy they owned and give him the money for safekeeping. He said he was concerned about a former business partner taking the money. Bryce then changed the mailing address of that couple to his address and kept the money for himself.
Judge Gerrard also ordered Bryce to pay $107,591.51 to the two couples. That amount accounts for the losses they incurred that were not covered by the civil case.
The case was investigated by the Nebraska Department of Insurance and United State Postal Inspection Service.
Rapid City Man Sentenced for False StatementsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of False Statements Relating to Health Care Matters was sentenced on February 6, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Antone Little Moon, age 34, was sentenced to time served and 12 months of supervised release.
The conviction stems from Little Moon attempting to have a false prescription for Hydrocodone filled at the Indian Health Services Pharmacy in Pine Ridge on September 16, 2013. Little Moon pled guilty to the charge on October 29, 2014.
This case was investigated by the Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Prior Felon from Carlsbad Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Eduardo Lerma, Jr., 32, of Carlsbad, N.M., pleaded guilty this morning in federal court in Las Cruces, N.M., to being a felon in possession of a firearm.
Lerma was arrested in Aug. 2014, by the Bureau of Alcohol, Tobacco, Firearms and Explosives on a criminal complaint alleging that he unlawfully possessed a firearm on Aug. 14, 2014, in Eddy County, N.M. Lerma subsequently was indicted on that same charge on Nov. 12, 2014. According to court filings, Lerma was prohibited from possessing firearms because he previously had been convicted of two drug trafficking crimes and receiving stolen property.
Today Lerma entered a plea of guilty to the indictment charging him with being a felon in possession of a firearm; he also admitted violating the conditions of his supervised release. In entering his guilty plea, Lerma admitted being in possession of two rifles on Aug. 14, 2014. Lerma also acknowledged that he was prohibited from possessing firearms because he was a convicted felon and by the conditions of his supervised release.
Lerma has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Lerma faces a maximum penalty of ten years in federal prison for being a felon in possession of a firearm
At the time of his arrest, Lerma was under supervised release for a prior federal previous conviction. A petition against Lerma for violating the conditions of supervision release is pending.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the HITDA Region VI Pecos Valley Drug Task Force, the Carlsbad Police Department, and the Eddy County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HITDA Region VI Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department, Artesia Police Department, New Mexico Probation and Parole, and the 5th Judicial District Attorney’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
President of Investment Advisory Firm Sentenced in Manhattan Federal Court to Six Years in Prison for Multimillion-Dollar Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JAMES TAGLIAFERRI, formerly the president of TAG Virgin Islands (“TAG”), was sentenced in Manhattan federal court to six years in prison in connection with a multi-year multimillion-dollar fraudulent scheme to defraud his own investment advisory clients. Through TAG, TAGLIAFERRI, a SEC-registered investment adviser: (a) accepted undisclosed compensation in exchange for causing his clients to invest in certain securities; (b) used client funds for illegitimate purposes, including paying other clients; and (c) caused false and fictitious securities instruments to be placed in client accounts. In total, TAGLIAFERRI’s scheme caused clients to lose at least $16 million. In July 2014, TAGLIAFERRI was convicted, following a nearly five-week jury trial, of investment adviser fraud, securities fraud, multiple counts of wire fraud, and multiple counts of violating the Travel Act. He was sentenced today by U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “Today’s sentence ensures that James Tagliaferri will be punished for taking millions in undisclosed fees in exchange for steering his clients’ money to certain companies, and defrauding investors to the tune of millions of dollars. Those who would commit similar crimes should understand that this Office has zero tolerance for individuals who jettison their investors’ interests in favor of their own through fraud and deceit.”
According to the Superseding Indictment filed in Manhattan federal court, other court documents in the public record, and the evidence presented at trial:
In 2007, TAGLIAFERRI opened TAG in the Virgin Islands and began offering investment advisory services to clients through that company. Previously, TAGLIAFERRI had offered such services through another company, Taurus Advisory Group.
Beginning in 2007, TAGLIAFERRI began executing a scheme to defraud TAG clients in various ways. First, TAGLIAFERRI began taking undisclosed fees in exchange for investing client funds in certain companies. He received at least $1.6 million in undisclosed fees in exchange for causing clients to invest in the securities of a horse-racing company located in Garden City, New York (“Company 1”). TAGLIAFERRI placed at least $40 million of client funds in investments relating to Company 1. He also received at least approximately $1.75 million in undisclosed compensation in exchange for placing client funds in several companies affiliated with an associate of his (“Associate 1”). Ultimately, TAGLIAFERRI placed at least $80 million in client funds in investments relating to these companies.
TAGLIAFERRI often used his clients’ money to finance these undisclosed payments to TAG. He did this by transferring client funds from custodial accounts to a trust account maintained by an attorney. He then diverted a portion of those funds – the undisclosed payment – from the trust account to a TAG account in the Virgin Islands that he controlled. By routing fees to TAG through this trust account and other third-party accounts, TAGLIAFERRI was able to receive these fees with no record of such fees appearing on the monthly statements custodial financial institutions sent to TAG clients.
Second, TAGLIAFERRI used client funds for improper purposes, including making payments to other clients who were demanding their money, and to make payments on behalf of companies he was affiliated with, including Company 1. He orchestrated a complex series of transactions between and among TAG client accounts to access funds for these purposes. For example, when an immediate need for funds arose, he caused clients to purchase shares of a publicly traded company affiliated with Associate 1 from a client account affiliated with Associate 1 that TAGLIAGERRI controlled. Once those sales took place and TAG client funds were transferred to that account, he used those funds for his own purposes, including for payments to other clients demanding their money.
Third, TAGLIAFERRI caused false and fictitious securities to be placed in client accounts. He signed a series of investment instruments relating to a company located in Pennsylvania (the “Pennsylvania Company”). According to these instruments, the Pennsylvania Company was obligated to make payments to certain TAG clients based on a note agreement between the Pennsylvania Company and TAG. In reality, however, the Pennsylvania Company never executed any agreement with TAG that obligated it to make payments to TAG or TAG clients. As TAGLIAFERRI well knew, these investment instruments, and the obligation they referenced, were false and fictitious.
In addition to the prison term, Judge Abrams sentenced TAGLIAFERRI, 75, who currently resides in Stamford, Connecticut, and formerly resided in the United States Virgin Islands, to three years of supervised release. TAGLIAFERRI was also ordered to forfeit $2.5 million, including any ownership interest in a residential property in the U.S. Virgin Islands. The Court deferred imposing an order of restitution until a later date.
Mr. Bharara praised the work of United States Postal Inspection Service. He also thanked the United States Securities and Exchange Commission and the United States Attorney’s Office for the Eastern District of North Carolina for their assistance in this matter.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jason H. Cowley and Parvin Moyne, and Special Assistant United States Attorney Saima S. Ahmed of the United States Securities and Exchange Commission are in charge of the prosecution.
Phoenix Arizona - Woman Pled Guilty to Mail Fraud and Aggravated Identity Theft.Read the Press Release
SYRACUSE, NEW YORK –United States Attorney Richard S. Hartunian and IRS-Criminal Investigations, New York Field Office, Special Agent in Charge Shantelle P. Kitchen announced that Elaine Monique Zavala-Charres, 34, of Phoenix Arizona pled guilty today in federal court in Utica, New York to mail fraud and aggravated identity theft in a case involving false federal income tax returns that resulted in the theft of over $260,000.00 from the IRS. Zavala-Charres admitted that in 2011 and 2012 she operated a scheme with her codefendant, Lacey Hollinger, a Massena, New York native, wherein Massena area residents were contacted via Facebook and other electronic media to tell them they were eligible for a tax refund even though they were unemployed and had no income as part of a U.S. Government "stimulus program." No such program existed. Several dozen responded, giving Hollinger their personal identification information (date of birth, social security number, etc.). Hollinger forwarded this information to Elaine Monique Zavala-Charres in Phoenix, Arizona, who used it to create false and fraudulent tax returns that generated over $260,000.00 in tax refunds. Zavala-Charres and Hollinger stole these funds after they were electronically deposited in bank accounts they controlled in Arizona.
The Massena area residents never saw the tax returns, which falsely represented that they were self-employed and entitled to a refund. Some did get pre-paid debit cards that Hollinger and Zavala-Charres caused them to receive in the mail. Many got nothing, with Elaine Monique Zavalla-Charres and Lacey Hollinger keeping most of the refund money.
Lacey Hollinger, 27, pled guilty to these same charges and will be sentenced on March 5, 2015.
"Identify theft and false income tax filings are two crimes that are increasingly affecting the public," stated United States Attorney Richard S. Hartunian. "The most important thing for citizens to remember is to never give their personal identifying information out to people they don’t know or who shouldn’t need that information."
At sentencing on June 10, 2015 in Utica, Elaine Monique Zavala-Charres faces a maximum sentence of up to twenty (20) years for her conviction for mail fraud and a fine of up to $250,000.00 as well as restitution. She faces an additional mandatory sentence of two (2) years imprisonment for her plea of guilty to aggravated identity theft, to be served consecutively to her mail fraud sentence. She faces up to three (3) years of supervised release following her release from prison.