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Thursday 18 December 2014
- Ten Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering Conspiracy
Springfield Resident Sentenced in Child Pornography OffensesRead the Press Release
Defendant Was On State Supervision for Prior Contact Offense
David Rivera, U.S. Attorney for the Middle District of Tennessee, announces that Jason Mikula, 36, of Springfield, Tennessee, was sentenced by United States District Court Judge Kevin Sharp to 20 years in prison. Mikula had pleaded guilty to receipt and possession two child pornography offenses on August 28, 2014.
Mikula was convicted in Nashville, Tennessee, in August 2005 of Aggravated Sexual Battery of a very young child and multiple counts of Sexual Exploitation of a Minor. After serving time in the state penitentiary, he was released in August 2012 onto lifetime supervision with the state. Within seven months of release, however, he had collected a number of sexually explicit images involving children, including images of violence perpetrated against very young children.
Upon his release from federal prison, Mikula will be placed on supervised release for fifteen years and will be required to participate in sex offender treatment, among other conditions.
The defendant also was ordered to pay restitution in the amount of $9300 to a minor victim depicted in some of the images of sexual exploitation he had collected.
This matter was investigated by the Federal Bureau of Investigation and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.
Solano County Violent Gang Safe Streets Task Force Efforts Result in Three Federal Indictments for Firearm ChargesRead the Press Release
SSACRAMENTO, Calif. — Michael Quesenberry, 26, of Sacramento; Ignacio Hernandez, 37, of Vallejo; and Rahson Woods, 35, of Vallejo, were charged today by a federal grand jury in separate indictments with being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
Each defendant was found to be in possession of a firearm after having been convicted of one or more felonies. Hernandez was also charged with possession with intent to distribute methamphetamine.
If convicted, each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are the products of investigations by the Solano County Violent Gang Safe Streets Task Force, which includes the Federal Bureau of Investigation, the Solano County Sheriff’s Office, Vallejo Police Department, the California Highway Patrol, and the Solano County District Attorney’s Office. Assistant United States Attorney Olusere Olowoyeye is prosecuting the cases.
The Solano County Violent Gang Safe Streets Task Force is part of the FBI-sponsored Safe Streets Initiative that combines the efforts of federal, state, and local agencies in an effort to stop violent felons from endangering our communities.
Six Fort Worth, Texas, Residents Indicted for Walgreens Burglaries in Texas and OklahomaRead the Press Release
Oklahoma City, Oklahoma – Hylon Joshua Alford-Solomon (23), James Richard Wooden (24), Chris Allen Williams, Jr. (24), Kenneth Wayne Tolbert (23), Kendrick Dwight Marshall (28), and Christopher Benjamin Blanton (21), all from Fort Worth, Texas, were indicted by a federal grand jury for the burglary of Walgreens Pharmacies in Texas and Oklahoma announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The indictment alleges in count one that from November 2013 through on or about July 19, 2014, the six defendants conspired to burglarize closed Walgreens Pharmacies in Woodway and Southlake, Texas, and Mustang, Oklahoma, in order to steal Hydrocodone, Alprazolam (Xanax), and Promethazine with Codeine cough syrup, all highly abused controlled substances. A second count charges Alford-Solomon, Wooden, Williams, and Tolbert with traveling from Texas to Mustang, Oklahoma on July 19, 2014, and breaking into the Walgreens Pharmacy at 112 East Highway 152. Each defendant faces up to 10 years in prison for the conspiracy charge. If convicted, the defendants will be required to pay restitution to Walgreens in an amount to be determined by the court. Further, if any member of the public knows of the whereabouts of Kendrick Dwight Marshall, they are asked to contact law enforcement.
This case is the result of an investigation by the Drug Enforcement Administration; the Mustang, Oklahoma City, El Reno, Fort Worth, Woodway, Southlake, and Denton Police Departments; and Walgreens Loss Prevention. It is being prosecuted by Assistant U.S. Attorneys Matt Dillon and Mark A.Yancey. The public is reminded that each defendant is presumed innocent until otherwise proven guilty beyond a reasonable doubt.
Sentencings for December 12 - December 18, 2014Read the Press Release
Kara Harper, 31, of Green River, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 18, 2014, for conspiracy to possess with intent to distribute heroin resulting in death. Harper was arrested in Green River, Wyoming. She received 72 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Gregg T. Denny, 43, of Rawlins, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 17, 2014, for conspiracy to possess with intent to distribute, and to distribute, more than 500 grams of methamphetamine and for conspiracy to launder money. Denny was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by eight years of supervised release, and was ordered to pay a $500.00 fine and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Steven D. Webb, 44, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on December 17, 2014, for possession of child pornography. Webb was arrested in Cheyenne, Wyoming. He received 36 months imprisonment, to be followed by 15 years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $1,250.00. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Ernie Paul Montoya, Sr., 68, of Coalville, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 16, 2014, on one count of conspiracy to possess with intent to distribute, and to distribute, more than 500 grams of methamphetamine; one count of possession with intent to distribute methamphetamine; and one count of conspiracy to launder money. Montoya was arrested in Coalville, Utah. He received 87 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $700.00 fine and a $300.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
David Puhl, 21, of Nunn, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on December 16, 2014, for conspiracy to possess with intent to distribute, and to distribute, more than 50 grams of methamphetamine. Puhl was arrested in Ault, Colorado. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Christopher Withrow, 44, of Sheridan, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 16, 2014, for conspiracy to possess with intent to distribute, and to distribute, more than 50 grams of methamphetamine. Withrow was arrested in Sheridan, Wyoming. He received 70 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Delza K. McKannan, 49, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 12, 2014, for conspiracy to possess with intent to distribute, and to distribute, more than 50 grams of methamphetamine and conspiracy to launder money. McKannan was arrested in Gillette, Wyoming. She received 84 months imprisonment, to be followed by six years of supervised release, and was ordered to pay a $500.00 fine and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Sentencing Hearings Completed in $600,000 Stolen Identity Tax Refund Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – Five individuals involved in a tax refund fraud scheme which used stolen and fraudulent identifying information of hundreds of individuals and businesses to defraud the Internal Revenue Service of nearly $600,000 have been sentenced in U.S. District Court in Providence, announced United States Attorney Peter F. Neronha.
Government reports indicate that losses due to Stolen Identity Refund Fraud – commonly referred to as SIRF – totals in the billions of dollars. In the last fiscal year alone (2014), the Department of Justice and U.S. Attorney’s offices have charged approximately 896 defendants for their alleged involvement in SIRF schemes.
This SIRF investigation began in January 2013, when Homeland Security Investigations (HSI) agents in Boston conducted a routine border search of Jairo Morales, 29, of Providence, who was flying in from the Dominican Republic. In a laptop computer, HSI agents identified evidence consistent with a tax refund fraud scheme.
According to court records and information presented to the court, an investigation by agents from Internal Revenue Service Criminal Investigation, U.S. Secret Service and HSI determined that Morales and Julianna Martins, 45, of Providence, orchestrated a stolen identity tax refund scheme which resulted in the filing of false federal income tax returns using stolen personal identity information of hundreds of individuals from Puerto Rico and fictitious W-2 forms from various companies. Fraudulently obtained tax refund checks, ranging from approximately $3,000 to $10,000, were sent to multiple Providence addresses under the control of Morales and Martins.
The investigation revealed that Morales, Martins, Lucia Morales, 55, of Providence, and Casimiro Santos, 36, of Providence, and others, deposited United States Treasury checks totaling in excess of $596,000 into various bank accounts controlled by the defendants.
Additionally, according to court documents and information presented to the court, Maria Paulino, 25, of Providence, a bank teller, assisted Martins in opening bank accounts using fraudulent identity information and negotiated checks on behalf of Morales, Martins, and their associates.
Jairo Morales and Julianna Martins pleaded guilty in March 2014 to conspiracy, theft of government property and aggravated identity theft. They were sentenced by U.S. District Court Judge John J. McConnell, Jr., to 48 months in federal prison to be followed by 3 years supervised release, and ordered to pay restitution in the amount of $385,533.58. Morales was sentenced on June 24, 2014. Martins was sentenced on September 29, 2014.
Casimiro Santos pleaded guilty on May 12, 2014, to theft of government property and aggravated identity theft. Santos was sentenced on Wednesday by U.S. District Court Judge John J. McConnell, Jr., to 24 months and one day in federal prison to be followed by 3 years supervised release, and ordered to pay restitution in the amount of $211,141.71.
Maria Paulino pleaded guilty on January 19, 2013 to theft of government property. She was sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 24, 2014, to 3 years probation – the first 6 months to be served in home confinement with electronic monitoring, and ordered to pay restitution in the amount of $92,970.14.
Lucia Morales pleaded guilty on March 31, 2014 to theft of government property. Morales was sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 26, 2014, to 3 years probation and ordered to pay restitution in the amount of $82,183.10.
The cases were prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.
The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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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]Savannah Man Sentenced on False Statement ChargeRead the Press Release
Jackson, Tenn. – Douglas Earl McCasland, 48, of Savannah, Tennessee, was sentenced Monday to serve six months in federal prison after pleading guilty to one count of making false statements in violation of 18 U.S.C. §1001, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to the facts presented in the indictment and revealed during sentencing, McCasland, who was certified by the State of Tennessee as a Methamphetamine Remediation Contractor, charged his victims a fee for cleaning up homes that had been contaminated by methamphetamine manufacturing. McCasland knew that after remediation, properties must be certified by an Industrial Hygienist prior to rehabitation. McCasland was not an Industrial Hygienist, but he issued false Certificates of Fitness on the properties.
In addition to the prison sentence, Chief United States District Judge J. Daniel Breen ordered McCasland to serve three years of supervised release and pay restitution in the amount of $102,225 to the victims. The restitution is to be paid at 15% of McCasland's income, or $100 per month. There is no parole in the federal prison system.
This investigation was conducted by the Tennessee Department of Environmental Quality; U.S. Postal Inspection Service; and the Environmental Protection Agency--Office of Inspector General. Assistant U.S. Attorney Victor L. Ivy represented the government.
Santa Fe Man Pleads Guilty to Federal Tax ChargesRead the Press Release
ALBUQUERQUE – Andre Lewis, 33, of Santa Fe, N.M., pleaded guilty this morning to federal tax offenses, announced Acting U.S. Attorney Damon P. Martinez and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Lewis was arrested in May 2014, on an eleven-count indictment. Count 1 of the indictment charged Lewis with conspiracy to defraud the IRS, and Count 2 charged him with making a materially false statement to a federal officer. Counts 3 through 11 charged Lewis with preparing and aiding and abetting the preparation and filing of false tax returns. Lewis committed the offenses between Feb. 2009 and Aug. 2009 in Bernalillo, County, N.M.According to the indictment, from Feb. to July 2009, Lewis conspired with others to defraud the IRS by preparing and filing fraudulent claims for tax refunds. Lewis and his co-conspirators perpetuated the scheme by obtaining the names, identifiers and W-2 Forms for federal taxpayers, and using that information to electronically file federal income tax returns included either false claims for the First Time Home Buyer Credit or false withholding information. Lewis and his conspirators thus obtained tax refunds to which they were not entitled from the IRS.
This morning, Lewis entered guilty pleas to Counts 1 and 3 of the indictment charging him with conspiracy and aiding and abetting the preparation of a false and fraudulent tax return. In his plea agreement, Lewis admitted filing a false tax return in Feb. 2009, by which he fraudulently obtained $16,024.14 from the IRS by misrepresenting his tax withholdings. Lewis also admitted that in 2009 he was involved in filing at least ten false tax returns and fraudulently receiving refunds based on those returns. In his plea agreement, Lewis admitted defrauding the IRS of an aggregate of $118,470.76 through this unlawful scheme.
Lewis has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Lewis faces a statutory maximum penalty of five years on Count 1 and a statutory maximum penalty of three years on Count 3.
Two of Lewis’s co-conspirators previously have entered guilty pleas to federal tax charges in related cases. Jerry Gurule, 33, of Albuquerque, N.M., pled guilty on July 24, 2014, to assisting in the preparation of the preparation and filing of a false tax return. Gurule was sentenced on Dec. 10, 2014, to four years of probation with eight months of home confinement and was ordered to pay $69,070.19 in restitution to the IRS. Also on July 24, 2014, Lawrence Jaramillo, 33, of Bosque Farms, N.M., pled guilty to conspiracy and to assisting in the preparation of the preparation and filing of a false tax return. Jaramillo is scheduled for sentencing on Jan. 13, 2015.
These cases were investigated by IRS Criminal Investigation in Albuquerque and are being prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
Rochester Man Sentenced to for Online Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that William Miller, 53, of Rochester, NY, who was convicted of online enticement of a minor, was sentenced to 168 months in prison and 10 years supervised release by U.S. District Court Judge David G. Larimer.“This case illustrates the threats facing our children by people known to the family,” said U.S. Attorney Hochul. “At the same time, it demonstrates the ability of law enforcement to detect crime and then solve it. We will continue to use all of the tools available to us in order to help protect children from violent predators such as this defendant.”
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that in August of 2012, Rochester Police responded to the defendant’s Electric Avenue Apartment after Miller claimed to be the victim of a crime. Inside the apartment, officers saw cases of untaxed cigarettes stacked all over, which led them to obtain a search warrant. During their search, officers found a digital camera which contained sexually explicit photos and videos of a young girl which appeared to be taken in Miller’s apartment. At that point, Police contacted the FBI Child Exploitation Task Force for investigative assistance.
Federal agents joined the investigation and identified the child depicted in the sexually explicit videos as a 12 year old girl known to the defendant. Interviews with the child and her mother determined that Miller used threats and bribes to get the child to allow him to produce this material. Federal investigators also determined that Miller used his cellphone to arrange for meetings with the child at which he would produce sexually explicit videos and photos.
At sentencing, Judge Larimer called the defendant a danger to the community. The Judge also referenced the fact that Miller had 80 prior criminal convictions over the past several decades, saying that the defendant should have learned something during all that time. The Court noted that Miller was on probation in Rochester City Court at the time he committed the federal child exploitation crimes for which he was convicted.
The sentencing is the culmination of an investigation on the part of Officers of the Rochester Police Department, under the direction of Chief Michael Ciminelli; and Special Agents of the Federal Bureau of Investigation, Child Exploitation Task Force.
RMD Holdings, LTD D/B/A Nationwide Fence and Supply Co. Settles Alleged False Claims Act Violations Involving Disadvantaged Business Enterprise Requirements in Federally Funded ProjectsRead the Press Release
- Alleged Violations Involved Federally Funded Transportation Projects in Kentucky, Indiana, Illinois, Georgia and New York
LOUISVILLE, Ky. – RMD Holdings, Ltd d/b/a Nationwide Fence and Supply Co. (Nationwide) agreed to pay a $1,750,000 to settle allegations that it circumvented the Disadvantaged Business Enterprise requirements in federally funded construction projects. Of that amount, $416,000 will be paid pursuant to a stipulation of settlement being submitted for Court approval today by the U.S. Attorney’s Office for the Southern District of New York.
Today’s announcement was made by Acting U.S. Attorney John E. Kuhn, Jr., the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and the Federal Highway Administration’s Office of Civil Rights.
“The Disadvantaged Business Enterprise program was created to ensure a level playing field for minority-owned and women-owned companies in federally funded transportation projects,” stated Acting U.S. Attorney Kuhn. “By circumventing the law, RMD undermined the goal of assisting disadvantaged companies in a market where the federal government invests many millions of dollars.”
According to the settlement agreement, beginning in 2008, the DOT-OIG began investigating Nationwide for improperly utilizing Disadvantaged Business Enterprise (DBE) companies as a pass through in order to satisfy the DBE requirements specified in federally funded construction projects. The projects were performed between October 20, 2006, through July 16, 2010, in Kentucky, Indiana, Illinois, Georgia and New York and most involved the installation of guardrails, security fencing, and cable barriers along interstates. In Kentucky, Nationwide installed high tension cable barriers in Barren, Bullitt, Hart and Jefferson Counties in June of 2008.
At the time, Nationwide was co-owned by two brothers: Micheal DeMil and Robert DeMil. The company was a specialty construction group that conducted business in 33 states with its principal office located in Chesterfield Township, Michigan. Many of the transportation projects on which Nationwide worked were funded in whole or in part by the United States, and each project required a certain percentage of DBE participation. Nationwide was not a certified DBE.
The DBE program generally requires that recipients of federal highway funds establish a program to assist women owned or minority owned businesses to compete for work on federally funded construction projects. Recipients of these funds often accomplish this goal by requiring that each construction project include a certain percentage of participation by a DBE company. This percentage can be met by contractors utilizing DBE subcontractors to either perform work on the project or to supply materials.
The United States contends that, during the period from October 20, 2006, through July 16, 2010, Nationwide misrepresented how it utilized Sallie’s Wholesale Construction, Inc. (a DBE company) and Access Control Company, Inc. (a DBE). Nationwide claimed that Sallie’s Wholesale Construction, Inc. (SWC) was a DBE providing materials on projects in Indiana, Kentucky and Georgia. In reality, SWC was not acting as a material supplier and did not have in its possession those materials Nationwide needed for its projects. Instead, Nationwide would negotiate a price with non-DBE material suppliers and then request SWC to contract with the non-DBE material supplier so that it appeared SWC was furnishing the materials to Nationwide=s job site. SWC never touched the material purchased from the true material suppliers and was simply acting as an extra participant in the procurement of materials. In the case of Access Control Company, Inc. (Access), Nationwide represented that Access would furnish materials on a project in Illinois when, in fact, Access never provided materials and never agreed to act as a pass-through for materials. The government’s investigation did not find any wrongdoing by Access and Access cooperated fully with the government’s investigation.
Nationwide has also agreed to enter into an administrative settlement and three year compliance agreement with the United States Department of Transportation, Federal Highway Administration (FHWA). This agreement requires Nationwide, in part, to undertake remedial measures including: (1) the adoption and implementation of an Ethics Code and Corporate Compliance Program; (2) the appointment of a Corporate Compliance Officer ; and (3) the retention of an independent Monitor to evaluate the Company's performance of this Agreement and to submit periodic reports directly to the FHWA.
This settlement agreement is neither an admission of liability by Nationwide or its co-owners, nor a concession by the United States that its claims are not well founded.
This case was investigated by the U.S. Attorney’s Offices for the Western District of Kentucky, Northern District of Georgia, Middle District of Georgia, Southern District of Georgia, Southern District of Indiana, Central District of Illinois, and the Southern District of New York. The matter was prosecuted by Assistant United States Attorney Benjamin S. Schecter in the Western District of Kentucky, Trial Attorney Kelley Hauser with the U.S. Department of Justice, Civil Division, Commercial Litigation Branch, Frauds Section, The U.S. Attorney’s Office for the Southern District of New York and was investigated by U.S. Department of Transportation Office of Inspector General (DOT-OIG) and the Federal Highway Administration’s Office of Civil Rights.
President of Two Minnesota Nonprofits Pleads Guilty to Mail FraudRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of ROBERTA BARNES, 57, for using her nonprofit organizations to defraud two Minnesota state agencies, stealing more than $460,000 in state and federal grant funds. The defendant pleaded guilty on December 15, 2014, before Judge John R. Tunheim in U.S. District Court in Minneapolis, Minn., to one count of Mail Fraud.
“This defendant stole from grant programs designed to help underprivileged communities in Minnesota,” said Assistant U.S. Attorney Benjamin Langner. “She used the guise of two nonprofit entities to steal money that could have been used for philanthropic purposes in order to enrich herself.”
According to her guilty plea and documents filed in court, BARNES was the president of two St. Paul-based nonprofit organizations, Agape House for Mothers (“Agape”) and Sierra Young Family Institute (“Sierra”). Through Agape and Sierra, BARNES obtained approximately $1.7 million in grant funds offered by the Minnesota Department of Health (“MDH”) and the Minnesota Housing Finance Agency (“MHFA”).
From 2002 until May 2012, BARNES applied for and received grant money from MDH and MHFA through promises that the funds would be used for philanthropic purposes such as combating teen pregnancy and providing housing assistance to needy families. Instead, BARNES intended to and did use a significant portion of the grant funds to make mortgage payments, car payments and other unauthorized payments to herself and her family.
Between 2002 and 2012, BARNES, on behalf of Agape and Sierra, obtained a series of grants from MDH for the purported purpose of operating teen pregnancy programs for minority populations in the St. Paul area. In 2008, BARNES, on behalf of Sierra, applied for and received a grant from MHFA, falsely representing that the funds would be used for finance programs designed to provide assistance to households experiencing long-term homelessness.
According to her guilty plea and documents filed in court, BARNES spent more than $460,000 of the grant funds on personal expenses for herself and her family; she attempted to conceal her fraud scheme by creating fraudulent invoices that reflected false expenses incurred by Agape and Sierra.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services.
Assistant U.S. Attorneys Benjamin Langner is prosecuting the case.
Defendant Information:
ROBERTA BARNES, 57
St. Paul, Minn.
Convicted:
• Mail Fraud, 1 countPlacerville Business Owner Sentenced for Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — United States District Judge Morrison C. England Jr. sentenced Thomas W. Stringfellow, 55, of Placerville, today to 18 months in prison and ordered to pay $687,182 in restitution for willfully making false tax returns, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2006 through 2010, Stringfellow underreported his business income on tax returns by more than $1.1 million, and underreported his personal income on tax returns by more than $1 million. Stringfellow owned New Horizon Painting, and rather than depositing all of the business checks into the appropriate accounts, he cashed some of the checks and did not report those amounts as income. In total, Stringfellow’s underreporting of his business income and his personal income led to a tax loss of more than $687,000.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Jean M. Hobler prosecuted the case.Pine Hill Man Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Joseph Paddock, 21, an enrolled member of the Navajo Nation who resides in Pine Hill, N.M., was sentenced this morning to a year in federal prison followed by three years of supervised release.
Paddock was arrested on April 28, 2014, on a criminal complaint charging him with assault, and subsequently was charged in an indictment with assault with a dangerous weapon. According to court filings, Paddock assaulted the victim, a security guard employed by the Ramah Navajo School Board, by cutting him with a knife on April 18, 2014, at a location within the Navajo Indian Reservation.
On Aug. 27, 2014, Paddock entered a guilty plea to the indictment and admitted that on April 18, 2014, he assaulted the victim with a knife with the intent of causing bodily harm. Paddock acknowledged that as a result of the assault, the victim sustained injuries that required multiple stitches.
This case was investigated by the Ramah Navajo Police Department and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Pennsylvania Man Charged in White Plains Federal Court with Retaliating Against A Witness and StalkingRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the arrest of KRIS SERGENTAKIS for retaliating against a witness and stalking. The Complaint alleges that SERGENTAKIS has engaged in a scheme to retaliate against, stalk, and harass an individual (“Victim-1”) who previously provided law enforcement with information relating to SERGENTAKIS’s commission of federal offenses, for which SERGENTAKIS was previously convicted and served a federal prison sentence. SERGENTAKIS was arrested this morning in Pennsylvania and is expected to be presented today in federal court in Allentown, Pennsylvania, before a United States Magistrate Judge.
Manhattan U.S. Attorney Bharara said: “As alleged, after Kris Sergentakis was reported for engaging in kickbacks, convicted, and sentenced to a prison term, he began a campaign of retaliation and stalking in an effort to destroy the life of the former colleague who exposed his criminal conduct. There will be zero tolerance from this Office and our law enforcement partners for witness intimidation and harassment. The criminal justice system relies on witnesses, and they should not suffer for being good citizens who come forward to ensure justice is done.”
USPIS Inspector-in-Charge Bartlett said: “Sergentakis viciously and knowingly attempted to destroy his victim’s reputation and livelihood through letters, emails, and the internet. Law enforcement has a responsibility to protect witnesses against intimidation and will bring to justice anyone who engages in these types of slanderous attacks.”
According to the Complaint unsealed today in White Plains federal court:
SERGENTAKIS was formerly employed in the graphics department of The Leukemia and Lymphoma Society (“LLS”), a charitable non-profit organization that funds cancer research and is headquartered in White Plains. In 2006, SERGENTAKIS pled guilty in Manhattan federal court to commercial bribery and mail fraud charges arising out of his participation in a kickback scheme in which he allocated certain of LLS’s printing contracts to certain vendors in return for payments from the vendors. During the course of that investigation and prosecution, Victim-1, who was LLS’s Chief Financial Officer at the time and subsequently became its Chief Executive Officer, provided information to law enforcement relating to SERGENTAKIS’s conduct at LLS and his violations of federal law.
From at least 2007 to the present, SERGENTAKIS has harassed and threatened Victim-1 through letters, emails, and the Internet. SERGENTAKIS began by sending multiple letters to Victim-1 and other current and former employees at LLS. For example, in 2007, SERGENTAKIS sent a letter to Victim-1 stating, in part, that “[e]very person on the planet will know that you are a dangerous child molester,” and “I’ll be everywhere you are warning people.” SERGENTAKIS’s letter to Victim-1 further stated that “when I am released I will be outside where you live, work, eat, whatever;” “I will never give up;” and “[a]s long as I live this will never end.” The letter concluded with: “This hasn’t even started yet.”
In 2010, shortly after being released from prison, SERGENTAKIS created a website (the “Website”) containing harassing and threatening content regarding Victim-1. On at least two occasions, Internet service providers stopped hosting the Website because of its content, but SERGENTAKIS responded by relaunching the Website with a different service provider. Between 2010 and the present, the Website’s content included, among many other things, the following:
- An image of a guillotine with the title “THE CURE FOR PEDOPHILLIA”[sic] and, immediately below the image, the statement: “We all have a responsibility to keep children safe from pedophiles like [Victim-1] . . . .”
- “[Victim-1] also enjoys beating helpless animals, he had a dalmation [sic] which would have accidents in the house so [Victim-1] would beat the dog to a pulp the same way he abuses cancer patients by denying them the monies the public wants them to have.”
- Photographs of Victim-1 and members of Victim-1’s family that had been posted on the Facebook accounts of certain of Victim-1’s family members.
- The statement that a poster regarding Victim-1 would be produced and that “Manhattan and [the town where Victim-1 lived] would be wallpapered with a 100,000 posters.”
SERGENTAKIS also created a Facebook account on which he posted harassing and threatening content regarding Victim-1. For example, in September 2014, the Facebook account showed a photograph of Victim-1 with the word “CRIMINAL” imposed in all capital letters across the bottom and, in August 2014, SERGENTAKIS posted a comment on the account stating: “I am thinking of running a promotion. What do you prefer a coffee mug or t shirt?” Above this comment was a photograph of a coffee mug bearing the web address of the Website, an image of Victim-1 behind prison bars, and the words “[Victim-1] CEO LLS.” In addition, SERGENTAKIS posted links to and advertisements for the Website on various other websites, including search engine websites, social media websites, news websites, and blogs.
SERGENTAKIS also used email to conduct his campaign of retaliation and harassment. For example, in August 2010, SERGENTAKIS sent an email to the then-principal of the high school where Victim-1’s children were enrolled as students, providing a link to the Website and stating: “this is something u need to know about.” SERGENTAKIS sent numerous emails to the media promoting the Website and making false allegations about Victim-1. For example, in September 2010, SERGENTAKIS sent an email to a TV station in Missouri stating, in part: “the head of a major nonprofit was arrested for child molestation and case fixing see [Website-1].” As another example, in September 2013, SERGENTAKIS sent an email to ABC News with the subject line “please review [Website-1]” and stating: “The CEO is a pedophile and millions of dollars are missing.” SERGENTAKIS further sent multiple emails to donors of LLS promoting the Website, disseminating such allegations about Victim-1, and encouraging the donors to stop supporting LLS.
SERGENTAKIS, 54, of Bangor, Pennsylvania, is charged with one count of retaliating against a witness or informant, which carries a maximum sentence of 10 years in prison, and one count of stalking, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara thanked and praised the USPIS for its outstanding work in this investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney George D. Turner is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Pair Plead Guilty to Child Pornography ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that James Grimes, aged 29, of Columbus, Georgia, entered a guilty plea to one count of possession of child pornography on December 17, 2014, before the Honorable Clay D. Land, Chief U.S. District Court Judge, in Columbus, Georgia.As part of an ongoing investigation by Homeland Security Investigations, a search warrant was executed at Mr. Grimes’ home on April 30, 2012. During a voluntary, consensual conversation with agents, Mr. Grimes admitted to owning multiple computers and having “illegal stuff” on some of them. He further admitted to accessing wireless modems around his neighborhood, downloading child pornography, and forwarding it to others. At the time of the interview, Mr. Grimes was in possession of more than 600 pornographic images.
Mr. Grimes faces a maximum possible sentence of twenty (20) years imprisonment, a maximum fine of $250,000, or both. He will also be required to register as a sex offender. He will be sentenced in about 60 days.
In a separate case, Kenneth Nichelson, aged 56, of Cataula, Georgia, entered a plea of guilty on December 17, 2014 before Judge Land to receipt of child pornography. In entering his plea of guilty, Mr. Nichelson admitted that between June 2010 and March 2011, he purchased nine DVDs depicting child pornography from a company in Toronto, Canada. When arrested on July 8, 2014, Mr. Nichelson was in possession of more than 10, but fewer than 150 images of child pornography on a computer in his home.
A criminal history check on Mr Nichelson revealed that he had a previous conviction of sexual abuse in the 2nd degree in 1994 in New York. Due to his previous conviction, he faces a sentence of a mandatory minimum 15 years up to 40 years. Sentencing for both Mr. Grimes and Mr. Nichelson will be in about 60 days.
“The tragedy of child pornography cases is that the children are re-victimized every time their photos are viewed by criminals like Mr. Grimes and Mr. Nichelson. That is why these cases are so important and why we’ll keep using every resource to protect our children,” said U.S. Attorney Michael Moore.Assistant United States Attorney Crawford Seals is prosecuting the case for the Government. Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Orlando Cocaine Trafficker Sentenced to 15 Years and Ordered to Forfeit His Home, Vehicles, and over $600,000Read the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp has sentenced Garry Wiggins (48, Orlando) to 15 years in federal prison for cocaine trafficking. The Court also ordered him to forfeit approximately $611,613, two automobiles, and his home on South Buena Vista Avenue in Orlando, all of which were either used to facilitate the crime, or determined to be traceable proceeds of the offense.
Wiggins pleaded guilty on September 16, 2014.
According to court documents, in about 2010, another Orlando co-conspirator began receiving shipments of kilograms of cocaine from the southwest border region of the United States, and then sold some of that cocaine to Wiggins. These shipments continued until May 31, 2014, when law enforcement agents with the Drug Enforcement Administration and the Orange County Sheriff’s Office arrested the co-conspirator and seized 15 kilograms of cocaine and approximately $109,700.
On May 31, 2014, agents conducted a controlled delivery and arrested Wiggins, who arrived to pick up the cocaine in a 2004 Chevrolet Avalanche containing a toolbox with approximately $175,470 for the anticipated purchase. Following his arrest, agents searched Wiggins’s home, where they found approximately $237,710 in cash, a kilogram of cocaine, a handgun, crack cocaine, and heroin. The residence was fortified with rebar and cement posts. Upon further investigation, agents also seized a 1969 Chevrolet Camaro race car, along with two Chase Bank accounts containing approximately $99,900 and $98,533, respectively.
This case was investigated by the Drug Enforcement Administration and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Daniel C. Irick.
Orange County Gang Members Sentenced for Sex Trafficking of A MinorRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced four individuals to federal prison for their participation in the sex trafficking of a minor. Xavier Francisco Villanueva, a/k/a “X,” (25, Orlando) was sentenced to 19 years and 7 months in federal prison; Jose Carmona, a/k/a “Hood,” (21, Orlando) was sentenced to a term of 12 years and 6 months; Ashley Nicole Barnett, a/k/a “Snow,” (25, Orlando) was sentenced to 10 years’ imprisonment; and Keith E. Romby, II, a/k/a “PJ,” (23, Orlando) was sentenced to 8 years and 4 months in federal prison.
On September 5, 2014, a federal jury found Villanueva, Carmona, and Barnett guilty of conspiracy to commit sex trafficking of a minor. Carmona and Barnett were also found guilty of aiding and abetting each other in the commission of the offense. Romby pleaded guilty to both charges on August 29, 2014.
According to evidence presented at trial, between January 17, 2013, and January 25, 2013, the individuals agreed to recruit and entice a 14-year-old girl to engage in commercial sex acts. Villanueva, Carmona, and Romby were part of the “Nine Trey Billy Bad Ass” gang, which is affiliated with the “Bloods” street gang. Over a period of nine days, they used drugs, intimidation, and physical restraint to cause the minor to engage in prostitution with customers they solicited through the Internet. On January 25, 2013, the minor escaped from the house where she was being held captive.
This case was investigated by the Federal Bureau of Investigation and the Metropolitan Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda and Karen Gable.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ocean County, N.J., Man Indicted Today in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man was indicted today for his role in a large-scale mortgage fraud scheme that caused millions of dollars in losses, U.S. Attorney Paul J. Fishman announced.
Joseph DiValli, 45, of Jackson, New Jersey, was charged in a seven-count indictment with one count of conspiracy to commit wire fraud and six counts of wire fraud, all of which caused losses of at least $2 million. DiValli was originally charged by complaint on Jan. 24, 2013, with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
From as early as March 2011, DiValli, a loan officer at a mortgage bank, allegedly engaged in a large-scale mortgage fraud conspiracy. He provided fraudulent documents to financial institutions in connection with mortgage loan applications on behalf of “straw buyers” to induce those financial institutions to fund mortgage loans. Relying upon those false documents, financial institutions funded mortgage loans. DiValli then profited illegally by receiving money from a conspirator.
DiValli is also charged with wire fraud involving a modification of a loan on his personal residence. From as early as March 2011, DiValli caused a loan officer at a mortgage brokerage company to send payroll ledgers and earnings statements from DiValli’s employer that falsely understated his earnings in order to fraudulently secure the modification.
The counts of wire fraud conspiracy and bank fraud are each punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million.
U.S. Attorney Fishman credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, including special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan Larsen; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria Kelokates; special agents of the U.S. Housing and Urban Development, Office of Inspector General, Northeast Region of Investigations, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; and the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano Gregory, for the investigation leading to today’s charges.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the Economic Crimes Unit of the Criminal Division in Newark.
The charges and allegations contained in the indictment and complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel: Michael Calabro Esq., Newark
DiValli, Joseph IndictmentNunez V. City of New York, Et Al. - U.S. Motion to Intervene DocumentsRead the Press Release
Nunez v. City of NY US Complaint in Intervention Exhibit A
Nunez v. City of NY, et al US Motion to Intervene Memo of Law
Nunez v. City of NY, et al US Motion to Intervene Notice of Motion
Nunez v. City of New York, et al US Complaint-In-InterventionNorfolk Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
NORFOLK, Va. – Eric Kevin Downey, 35, of Norfolk, Virginia, pleaded guilty today to charges of receipt of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Special Agent in Charge Clark Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington office, made the announcement after the plea was presented to United States Magistrate Judge Douglas E. Miller.
Downey was indicted by a federal grand jury on November 5, 2014. Downey faces a mandatory minimum of 5 years and a maximum penalty of 20 years in prison when sentenced. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to a statement of facts filed with the plea agreement, Downey was identified when it was discovered that he had been surreptitiously filming a minor while she was drying off in a shower. Not only had he engaged in filming the minor, he also had been collecting images of minors engaged in sexually explicit activity from the Internet. Downey admitted he had been collecting these images since approximately 1999 or 2000. He will be sentenced on March 30, 2015.
This case was investigated by Homeland Security Investigations and Norfolk Police Department. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-145.
Nine Charged in Scheme to Defraud BanksRead the Press Release
A second superseding indictment was returned today against nine people charged in a bank fraud conspiracy that also stole the identifying information of at least two people, announced United States Attorney Zane David Memeger and Burlington County (NJ) Prosecutor Robert D. Bernardi. The defendants allegedly obtained or attempted to obtain $279,875.93 through fraudulent means. Charged in the superseding indictment are: Adolphus William Cato, 33, Michael Ross, 49, both of Sicklerville, NJ; Jared Hayes, 37, Quanda Anthony, 43, both of Willingboro, NJ; Sean Finn, 31, of Mount Holly, NJ; Rushawn Woodall, 38, of Trenton, NJ; Leonard Herrington, 41, Zabrina Jobe, 39, both of Philadelphia, PA; and Warren Moore, 41, of Bordentown, NJ.
According to the indictment, the defendants defrauded and attempted to defraud Third Fed Bank, TD Bank, Santander Bank, PNC Bank, M&T Bank, and Andrews Credit Union. Cato allegedly manufactured and obtained fraudulent drivers licenses utilizing the personal identifying information of victims without their knowledge or consent. Hayes allegedly obtained valid checks from businesses and personal bank accounts from individuals known and unknown to the grand jury then used the information to produce counterfeit checks. The victims’ personal identifying information was used in applying for loans online, to obtain money from various financial institutions by cashing counterfeit checks, and to obtain the proceeds of fraudulent loans using counterfeit identifications and checks. Defendants Woodall and Moore also allegedly used unauthorized and counterfeit access devices and fraudulent identification, allegedly provided by defendants Cato and Hayes, to obtain automobiles from car rental businesses and hotel lodging.
If convicted, the defendants face the following statutory maximum possible sentences: Cato, 157 years in prison; Hayes, 127 years in prison; Ross, 125 years in prison; Anthony, 95 years in prison; Moore, 87 years in prison; Jobe, 67 years in prison; Woodall, 57 years in prison; Herrington, 37 years in prison; and Finn, 35 years in prison, plus possible fines and restitution.
This case was investigated by Immigration and Customs Enforcement Homeland Security Investigations (HSI), the United States Secret Service, the Burlington County (NJ) Prosecutor’s Office, the Bucks County District Attorney’s Office, the Bordentown Township (NJ) Police Department, the Burlington City (NJ) Police Department, the Burlington County (NJ) Sheriff’s Department, the Camden County (NJ) Prosecutor’s Office High Tech Crimes Unit, the Camden County (NJ) Sheriff’s Department, the Cherry Hill (NJ) Police Department, the Lehigh County Auto Theft Task Force, the Mount Holly (NJ) Police Department, the Pennsauken Township (NJ) Police Department, the Plumstead Township Police Department, Willingboro Township (NJ) Police Department, and the Winslow Township (NJ) Police Department. It is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
New York Woman Indicted in Federal Court in Rhode Island on Charges of Aggravated Identity Theft, FraudRead the Press Release
PROVIDENCE, R.I. – Tanika Hawkins, 37, of Port Jervis, N.Y., is scheduled to be arraigned in U.S. District Court in Providence on December 23, 2014, on a federal indictment returned on Wednesday charging her with two counts of aggravated identity theft and two counts of wire fraud.
Hawkins was arrested by Cranston Police on August 2, 2014, after she allegedly used stolen identifying information of a person from Ohio in an effort to secure a line of credit at a Cranston jewelry store for the purchase of a Rolex watch valued at approximately $9,000.
It is also alleged, based on information developed by the Cranston Police Department and the U.S. Secret Service, that Hawkins used the same stolen identifying information to secure a line of credit at a Providence jewelry store for the purchase of a Rolex watch.
The indictment of Tanika Hawkins is announced by United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ms. Hawkins was released on unsecured bond following an initial appearance in U.S. District Court in this matter on August 4, 2014. Ms. Hawkins is scheduled to appear for arraignment before U.S. District Court Magistrate Judge Patricia A. Sullivan on December 23, 2014.
Wire fraud is punishable by statutory penalties of up to 20 years in federal prison and a fine of up to $250,000. Aggravated identity theft is punishable by a statutory penalty of a mandatory sentence of two years in federal prison, to be served consecutive to all other penalties imposed.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
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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]New London Man Indicted for Production and Possession of Child PornographyRead the Press Release
United States Attorney James L. Santelle, for the Eastern District of Wisconsin, announced that on December 16, 2014, a federal grand jury returned a two-count indictment against Shane M. Sells (age: 38) of New London, Wisconsin, charging him with one count of production of child pornography in violation of 18 United States Code Section 2251 (a) and one count of possession of child pornography in violation of 18 United States Code Section 2252A (a)(5)(B).
If convicted of the production offense, Sells faces a sentence of between fifteen and thirty years imprisonment, a $250,000 fine, and between five years and a lifetime of supervised release. If he is convicted on the possession offense Sells faces up to ten years imprisonment, a $250,000 fine, and between five years and a lifetime of supervised release.
According to the indictment, Sells engaged in sexually explicit conduct with a minor child for the purpose of producing a recorded visual depiction of that conduct, as well as knowingly possessing multiple images of child pornography.
The case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation and the Shawano County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
New Jersey Man, Three Others Charged in Painkiller Distribution OperationRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A federal grand jury returned a 17-count supersceding indictment charging a New Jersey man and three West Virginia residents in a prescription painkiller distribution operation, United States Attorney William J. Ihlenfeld, II, announced today.
An investigation revealed that Matthew L. Cordero, 31, of Vineland, New Jersey, Jonathan Paul Calain, 34, of Elkins, West Virginia, Stevie Lea Sharp, 27, of Coalton, West Virginia, and Gregory Stephen Scott, 34, of Beverly, West Virginia engaged in a scheme to procure oxycodone from sources in Detroit, New Jersey, and Florida for redistribution in the Northern District of West Virginia. Each of the defendants is charged with one count of “Conspiracy to Distribute Oxycodone.” They each face up to 20 years in prison and fine of up to $1,000,000.00 on the conspiracy charge.
Calain is additionally charged with one count of “Maintaining a Drug Involved Premises,” six counts of “Distribution of Oxycodone,” and one count of “Possession with Intent to Distribute Oxycodone.” He faces up to 20 years in prison on each of the eight counts. The drug involved premises charge carries a potential fine of up to $500,000.00. Each of the other seven counts carries a potential fine of up to $1,000,000.00.
Cordero is additionally charged with two counts of “Distribution of Oxycodone” and one count of “Possession with Intent to Distribute Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000.00 on each of the three counts. Sharp is additionally charged with six counts of “Distribution of Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000.00 on each count. Scott is additionally charged with two counts of “Distribution of Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000.00 on each count.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government. The case is being investigated by the Mountain Region Drug and Violent Crime Task Force, the West Virginia State Police, the Randolph County Sheriff’s Department, the Upshur County Sheriff’s Department, the Drug Enforcement Administration, and the Internal Revenue Service.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Nevada Man Found Guilty by Jury of Threatening to Kill A Federal Law Enforcement Officer-Defendant Previously Was Convicted of Similar Crime-Read the Press Release
WASHINGTON –Jeffrey Henry Williamson, 49, of Las Vegas, Nev., has been found guilty by a jury of making threats against a federal law enforcement officer, U.S. Attorney Ronald C. Machen Jr. and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, announced today.
The jury verdict was returned Dec. 16, 2014, in the U.S. District Court for the District of Columbia. The Honorable Rosemary M. Collyer will sentence Williamson on March 10, 2015. Williamson faces a statutory maximum sentence of 10 years in prison.
According to the government’s evidence, Williamson called the 911 Office of Unified Communications, in Washington, D.C., on June 19, 2014, and during an approximately 4 ½-minute recorded call, threatened to kill an FBI Special Agent who works in Denver. The evidence presented at trial established that Williamson made the threats in retaliation for an investigation of the defendant that the agent conducted in 2005 and 2006. That investigation involved harassing and threatening phone calls that Williamson was making to the Denver FBI field office and federal judges in Denver.
In 2008, Williamson was prosecuted in the Southern District of Texas for making threatening communications there. He was found guilty following a trial and sentenced to 42 months in prison, to be followed by three years of supervised release. However, Williamson kept up a pattern of harassing communications directed at federal officials. He completed his sentence and was released, but the Court revoked his supervised release. He then completed his second period of incarceration on Nov. 29, 2013. He arrived in Washington, D.C., in May 2014.
In announcing the verdict, U.S. Attorney Machen and Assistant Director in Charge McCabe commended those who investigated the case from the FBI’s Violent Crimes Task Force and the U.S. Marshals Service. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialist Leif Hickling; Criminal Investigators Zachary McMenamin and Durand Odom; Paralegal Specialists Jessica Moffatt and Michelle Holland, and Legal Assistant Donice Adams. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Frederick Yette, who prosecuted the case.
14-280Minot N.D. Man Sentenced for Bank RobberyRead the Press Release
FARGO - U. S. Attorney Timothy Q. Purdon announced that on Dec. 18, 2014, Antoine Lee Williams, 28, from Minot, N.D. was sentenced before U. S. District Judge Ralph R. Erickson, following a guilty plea to Bank Robbery, to serve 33 months in prison to be followed by 36 months supervised release. Williams must also pay a $100 special assessment to the Crime Victims Fund.
On October 24, 2013, Williams entered the Gate City Bank of Carrington, N.D., grabbed a slip of paper and left. A few minutes later, Williams reentered the bank, wearing a tan hat and sun glasses, and handed the teller the slip of paper demanding money and threatened her. Surveillance footage showed Williams leaving the scene in a white vehicle. Williams was apprehended shortly after leaving the bank. All monies from the bank robbery were recovered.
The case was investigated by the Federal Bureau of Investigation together with the Foster, Sheridan and Bottineau County Sheriff’s Offices, and the North Dakota Highway Patrol.
Assistant U. S. Attorney Keith Reisenauer prosecuted the case.
Michigan Man Sentenced to 15 Years for Heroin and Gun ChargesRead the Press Release
LEXINGTON, KY -Norshawn Michael Duplessis, 40, of Detroit, Mich., has been sentenced to 15 years in prison, for possessing hundreds of grams of heroin and a firearm in Lexington.
On Wednesday, U.S. District Judge Danny C. Reeves sentenced Duplessis for possession with intent to distribute 100 grams or more of heroin and for possessing a firearm in furtherance of drug trafficking.
Duplessis previously admitted that he possessed over 400 grams of heroin and intended to distribute it. Duplessis further admitted that he possessed a .380 caliber pistol in furtherance of his drug trafficking crime. The heroin and firearm, along with approximately $57,000 in cash, were found by law enforcement in Duplessis’ Lexington apartment, during the execution of a search warrant.
Duplessis pleaded guilty to the drug charge in July of 2014 and to the gun charge in September of 2014.
Under federal law, Duplessis must serve at least 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for eight years.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration, and Rodney Brewer, Commissioner, Kentucky State Police jointly made the announcement after the sentencing.
The investigation was conducted by DEA and KSP. Assistant United States Attorney, Robert M. Duncan Jr., prosecuted this case on behalf of the federal government.
Miami Resident Sentenced for Defrauding and Extorting Spanish-Speaking Customers through Fraudulent Call CentersRead the Press Release
A Miami woman charged with running an operation that threatened and defrauded Spanish-speaking consumers was sentenced today in federal district court in Miami, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced.
Maria Luzula, 52, was sentenced to serve 165 months in federal prison to be followed by three years of supervised release for her operation of Angeluz Florida Corporation and call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements for nonexistent debts. In addition to her prison sentence, Luzula was ordered to forfeit assets, including her home.
In October, Luzula pleaded guilty to all 27 counts against her midway through trial before U.S. District Court Judge Patricia A. Seitz. The charges against her included conspiracy, mail fraud, wire fraud and attempted extortion. Luzula’s son, Juan Alejandro Rodriguez Cuya, 35, was convicted by a jury after less than two hours of deliberation following a two-week trial and will be sentenced on Jan. 22, 2015.
“The defendants targeted and preyed upon the Spanish-speaking community – and the harm that their fraud caused on individual victims is heart-wrenching,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The Justice Department will be particularly vigilant towards schemes that target specific populations, and we will track down fraudulent actors whether they commit their offenses from the United States or abroad, and whether they commit them in English or another language.”
According to evidence presented at trial, the defendants’ employees in Peru used Internet-based telephone calls to threaten Spanish-speaking victims in the United States. The Peruvian callers falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that lawsuits would be brought against them. In reality, the victims had never ordered these products and nothing had been delivered.
Additional evidence at trial established that the call center employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation or seizure of property. Thousands of victims succumbed to these threats and paid fees that they did not owe.
Victims who testified at trial spoke of how anxious the calls made them. The victims were so afraid of the threats that they paid fees they simply could not afford. At sentencing, victims told the judge that they have lost trust in people and that they still become nervous every time the phone rings.
“Consumer fraud that targets a specific population is shameful,” said U.S. Attorney Wilfredo A. Ferrer for the Southern District of Florida. “In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation, forfeiture of property or harm to their credit scores when the consumers refused to settle claims for products that were not delivered or ordered. Such tactics are intolerable. The U.S. Attorney’s Office is committed and stands united with the Department of Justice’s Civil Division Consumer Protection Branch to protect our consumers from fraud.”
“The USPIS will continue to aggressively investigate and go after those who defraud citizens of their hard earned money through the use of threats and other abusive tactics,” said Postal Inspector in Charge Ronald Verrochio of the USPIS Miami Division.
Acting Assistant Attorney General Branda commended the USPIS for its investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case. The case was prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg of the Civil Division’s Consumer Protection Branch.
Miami Resident Sentenced for Defrauding and Extorting Spanish-Speaking Customers Through Fraudulent Call CentersRead the Press Release
A Miami woman charged with running an operation that threatened and defrauded Spanish-speaking consumers was sentenced today in federal district court in Miami, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced.
Maria Luzula, 52, was sentenced to serve 165 months in federal prison to be followed by three years of supervised release for her operation of Angeluz Florida Corporation and call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements for nonexistent debts. In addition to her prison sentence, Luzula was ordered to forfeit assets, including her home.
In October, Luzula pleaded guilty to all 27 counts against her midway through trial before U.S. District Court Judge Patricia A. Seitz. The charges against her included conspiracy, mail fraud, wire fraud and attempted extortion. Luzula’s son, Juan Alejandro Rodriguez Cuya, 35, was convicted by a jury after less than two hours of deliberation following a two-week trial and will be sentenced on Jan. 22, 2015.
“Consumer fraud that targets a specific population is shameful,” said U.S. Attorney Wilfredo A. Ferrer for the Southern District of Florida. “In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation, forfeiture of property or harm to their credit scores when the consumers refused to settle claims for products that were not delivered or ordered. Such tactics are intolerable. The U.S. Attorney’s Office is committed and stands united with the Department of Justice’s Civil Division Consumer Protection Branch to protect our consumers from fraud.”
“The defendants targeted and preyed upon the Spanish-speaking community – and the harm that their fraud caused on individual victims is heart-wrenching,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The Justice Department will be particularly vigilant towards schemes that target specific populations, and we will track down fraudulent actors whether they commit their offenses from the United States or abroad, and whether they commit them in English or another language.”
According to evidence presented at trial, the defendants’ employees in Peru used Internet-based telephone calls to threaten Spanish-speaking victims in the United States. The Peruvian callers falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that lawsuits would be brought against them. In reality, the victims had never ordered these products and nothing had been delivered.
Additional evidence at trial established that the call center employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation or seizure of property. Thousands of victims succumbed to these threats and paid fees that they did not owe.
Victims who testified at trial spoke of how anxious the calls made them. The victims were so afraid of the threats that they paid fees they simply could not afford. At sentencing, victims told the judge that they have lost trust in people and that they still become nervous every time the phone rings.
“The USPIS will continue to aggressively investigate and go after those who defraud citizens of their hard earned money through the use of threats and other abusive tactics,” said Postal Inspector in Charge Ronald Verrochio of the USPIS Miami Division.
Acting Assistant Attorney General Branda commended the USPIS for its investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case. The case was prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg of the Civil Division’s Consumer Protection Branch.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE RAMON GARCIANO-CABANILLA, age 47, a Mexican citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
United States District Court Judge Lance M. Africk sentenced GARCIANO-CABANILLA to 22 months imprisonment followed by 3 years of supervised release, and a $100 special assessment.
According to court documents, on or about June 5, 2014, agents of the Immigration and Customs Enforcement (“ICE”) encountered GARCIANO-CABANILLA after he had been arrested for traffic violations. After a records check, agents learned that GARCIANO-CABANILLA was a Mexican citizen who had not entered the United States legally and, in fact, had been previously deported from the United States on November 4, 2008. It was also learned that GARCIANO-CABANILLA had re-entered the United States without being inspected by United States Border Patrol officials and without the consent of the United States Attorney General.
At the sentencing hearing, Judge Fallon determined that GARCIANO-CABANILLA was subject to the 8 USC 1326(b)(1) sentencing enhancement provision due to GARCIANO-CABANILLA’s April 2003 prior conviction for conspiracy and possession with the intent to distribute marijuana.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Members of Fraud Ring Sentenced to Federal Prison for Stealing from the Home DepotRead the Press Release
ATLANTA - Robert Lee Hatcher III, Willie Dewayne Lynch, Andrew Oliver, and Arthur James Freeman have been convicted and sentenced for defrauding and conspiring to defraud The Home Depot, Inc.
“These defendants executed a long-term, sophisticated scam to defraud The Home Depot out of more than $600,000,” said United States Attorney Sally Quillian Yates. “Security measures at The Home Depot helped uncover and stop this scheme before they could steal more. This case should remind those who believe they have concocted the perfect scam that they will be caught.”
“The U.S. Secret Service and our law enforcement partners work tirelessly to protect our nation’s electronic financial payment systems,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “This sentence should serve as a reminder that criminals will not get away with using Point of Sale terminals to fund their criminal activity.”
According to United States Attorney Yates, the charges and other information presented in court: Beginning in at least January 2011, Hatcher, Lynch, and Oliver entered Home Depot stores in Georgia, Alabama, Florida, Tennessee, North Carolina, South Carolina, Kentucky, Louisiana, Mississippi, and Texas, and selected merchandise for purchase. Prior to purchasing the merchandise, they covered the UPC labels on high-priced items with UPC labels they removed from lower-priced items – a practice commonly called “ticket-switching.” The defendants then took the merchandise to a sales terminal, where they purchased it for the lower price.
After fraudulently purchasing the merchandise, Hatcher, Lynch, and Oliver removed the lower-priced UPC label, revealing the original, higher-priced UPC label. Next, the defendants returned the fraudulently purchased merchandise to Home Depot stores and obtained refund cards in the amounts of the actual (and higher) price of the merchandise. Hatcher, Lynch, and Oliver then sold the refund cards to Freeman in exchange for cash at 60% of the actual value contained on the refund cards. Thereafter, Freeman used the fraudulently obtained refund cards to buy merchandise at Home Depot stores, which he used to stock two retail stores that he owned and operated in Atlanta, Ga., known as “Bargain Wholesale.”
- On October 28, 2014, Robert Lee Hatcher III, 32, of Atlanta, Ga., was sentenced to five years in prison, followed by three years of supervised release, and was ordered to pay $647,391.02 in restitution.
- On October 28, 2014, Willie Dewayne Lynch, 30, of Atlanta, Ga., was sentenced to three years, nine months in prison, followed by three years of supervised release, and was ordered to pay $647,391.02 in restitution.
- On October 6, 2014, Andrew Oliver, 62, of Stone Mountain, Ga., was sentenced to three years, four months in prison, followed by three years of supervised release, and was ordered to pay $86,858.46 in restitution.
- Finally, on December 18, 2014, Arthur James Freeman, 54, of Atlanta, Ga., was sentenced to six months in prison, eight months of home confinement, followed by three months of supervised release, and was ordered to pay $113,527.50 in restitution.
This case was investigated by the United States Secret Service, the Governor’s Office of Consumer Protection, the Gwinnett County Police Department, the Woodstock Police Department, and the Atlanta Police Department, with assistance from Corporate Investigators with The Home Depot, Inc.
Assistant United States Attorneys Jeffrey W. Davis and Teresa D. Hoyt prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.
Mecklenburg Co. Social Worker Charged with Receiving Illegal Kickbacks in Connection with Medicaid Fraud SchemeRead the Press Release
The Defendant Provided Medicaid Clients’ Identities to a Conspirator in Exchange for Cash
CHARLOTTE, N.C. – Ryce Edward Hatchett, Jr., 43, of Charlotte, and a Senior Social Worker with the Mecklenburg County Department of Social Services (DSS), was charged today by a criminal bill of information with one count of receiving illegal kickbacks, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A plea agreement has also been filed and Hatchett is expected to appear in federal court in the coming weeks to formally accept the guilty plea.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte.
According to filed court documents, from November 2009 to October 2010, and while working at DSS, Hatchett participated in an illegal kickback scheme with Ronnie Lorenzo Robinson, owner and operator of “Peaceful Alternative Resources, Inc.” (PAR), a non-profit mental health and mentoring services provider with offices in Charlotte and surrounding areas. Court records indicate that Hatchett solicited and received illegal kickbacks from Robinson and PAR, in exchange for the referrals of individuals enrolled with the Medicaid program, some of whom were DSS clients. Court records show that Robinson used the beneficiaries’ information to file fraudulent reimbursement claims with Medicaid for services that were either not approved by Medicaid or were never provided. According to court records, Hatchett received at least $12,000 in illegal kickbacks from Robinson, in exchange for providing the information of the Medicaid recipients.
Hatchett will be ordered by the U.S. District Court to appear on a summons for his initial appearance, which will be scheduled by the Court. At sentencing, he faces a maximum term of five years in prison and a $250,000 fine for receiving the illegal kickbacks. In his plea agreement, Hatchett has agreed to pay full restitution to Medicaid for any losses resulting from his criminal conduct. The final restitution amount will be determined by the court at Hatchett’s sentencing hearing, which has not been scheduled yet.
Robinson pleaded guilty in January 2014 to two counts of health care fraud in connection with a separate case and is currently awaiting sentencing.
The investigation into Hatchett was handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. The prosecution was handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320
Maui Man Convicted of Methamphetamine DistributionRead the Press Release
HONOLULU – After a four-day trial in United States District Court in Honolulu, a federal jury today found James K. Tagupa, 33, of Wailuku,Maui, guilty of conspiring to distribute and possess, with intent to distribute, 50 grams or more of methamphetamine in August, 2012 as well as possessing 444 grams of methamphetamine with the intent to distribute.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the evidence presented at trial showed that Tagupa agreed with other individuals to distribute methamphetamine sent from Maui to Molokai on private vessels. The evidence established that Tagupa delivered 444 grams of pure methamphetamine which was intercepted during a traffic stop conducted by the Maui Police Department. Tagupa was also intercepted over a court authorized wiretap conducted by the Federal Bureau of Investigation (FBI) discussing how to conceal the methamphetamine for transport by boat to Molokai.
Tagupa was taken into custody immediately after the verdicts and faces up to life in prison with a mandatory minimum ten year term of imprisonment and will be sentenced by U.S. District Judge J. Michael Seabright on April 6, 2015.
The investigation which resulted in the charges in the case was conducted by the FBI and Maui Police Department. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Maryland Man Pleads Guilty to Taking Part in Conspiracy to Distribute Cocaine in the Washington, D.C. AreaAlso Pleads Guilty to Federal Firearms Offense; Judge Sentences Him to Six-Year Prison TermRead the Press Release
WASHINGTON – Timon Otis Sandidge, 38, of Temple Hills, Md., pled guilty today to federal narcotics and firearms offenses for his role in a conspiracy to distribute large quantities of cocaine in the Washington, D.C., metropolitan area, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Sandidge pled guilty in the U.S. District Court for the District of Columbia to one count of conspiracy to distribute and possess with intent to distribute cocaine. He also pled guilty to a related firearms offense. The Honorable Emmet G. Sullivan sentenced him to a six-year prison term, to be followed by five years of supervised release. The judge also ordered Sandidge to perform 100 hours of community service once he has completed his prison term.
Sandidge is among more than two dozen people charged in 2012 in connection with an investigation by the FBI/Metropolitan Safe Streets Task Force into a network that distributed cocaine in the Washington, D.C. area. According to the government’s evidence, he and other defendants conspired to carry out the drug operation from September 2010 through March of 2012, when it was broken up by law enforcement. The network operated in the District of Columbia and Maryland.
In his guilty plea, Sandidge admitted that, during the conspiracy, he purchased cocaine from a supplier on a regular basis. He accepted responsibility for at least two kilograms of cocaine powder, including amounts that he distributed and possessed with intent to distribute.
On Feb. 24, 2012, law enforcement conducted a search at Sandidge’s residence in Maryland. Law enforcement recovered a semi-automatic pistol in a dresser drawer in the bedroom. Law enforcement also recovered $3,000 in a safe in the closet of Sandidge’s bedroom, along with cocaine and other evidence. Another $564 in cash was found in the bedroom.
As part of his plea agreement, Sandidge agreed to the forfeiture of $3,564 and the gun.
This prosecution grew out of a long-term FBI/MPD alliance called the Safe Streets Task Force that targets violent drug trafficking gangs in the District of Columbia. The Safe Streets Initiative is funded in part by the Baltimore Washington High Intensity Drug Trafficking Area as well as the Organized Crime Drug Enforcement Task Force. The initiative involves more than 150 Safe Streets Task Forces across the country that combat street gangs by combining federal, state and local police resources. The task forces, which began in 1992 in Los Angeles and the District of Columbia, address gang activity, including drug-related crimes.
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier thanked those who pursued the investigation from the FBI/MPD Safe Streets Task Force and other agencies. They expressed appreciation to the Prince George’s County, Md., Police Department, the U.S. Park Police, the U.S. Marshals Service, the Drug Enforcement Administration, and the Maryland State Police for their assistance in the investigation.
They also acknowledged the efforts of those who have worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Rommel Pachoca, Regan Gibson, Starla Stolk, Kim Hall, Teesha Tobias, Mary Downing, Candace Battle, Catherine O’Neal, Jeannette Litz, Carolyn Carter-McKinley, and Crystal Barclay; Legal Assistants Latoya Wade, Candice Sisco, Diane Brashears, and Tammy Scott, and Assistant U.S. Attorneys Michelle Zamarin and Thomas A. Gillice, who indicted and handled the majority of the investigation and case-related litigation.
Finally, they commended the work of Assistant U.S. Attorneys Stephen J. Gripkey and John K. Han, of the Violent Crime and Narcotics Trafficking Section, who began trial preparation and handled plea negotiations, and Assistant U.S. Attorneys Zia Faruqui and Anthony Saler and Arvind Lal, of the Asset Forfeiture and Money Laundering Section.
14-281Manhattan U.S. Attorney Sues Thomas E. Haider, Former Chief Compliance Officer of Moneygram International, Inc., for Violating the Bank Secrecy ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Jennifer Shasky Calvery, the Director of the Financial Crimes Enforcement Network (“FinCEN”), announced today that the United States has filed a civil enforcement action against THOMAS E. HAIDER (“HAIDER”), the former Chief Compliance Officer of MoneyGram International, Inc. (“MoneyGram”), for violating the Bank Secrecy Act (“BSA”). At all times relevant to the Complaint, MoneyGram operated a money transfer service that enabled customers to transfer money from one MoneyGram location to another. The Complaint alleges that, notwithstanding his obligations as MoneyGram’s Chief Compliance Officer, HAIDER violated the BSA by failing to ensure that MoneyGram: (1) implemented and maintained an effective anti-money laundering (“AML”) program; and (2) filed timely suspicious activity reports with law enforcement when it knew, suspected, or had reason to suspect that third parties were using its money transfer service to facilitate criminal activity. The Complaint further alleges that, as a result of HAIDER’s conduct, the perpetrators of fraudulent telemarketing and other schemes were able to use MoneyGram’s money transfer system to engage in criminal activity and defraud MoneyGram customers out of substantial amounts of money.
Prior to the filing of the Complaint, FinCEN – which is responsible for enforcing compliance with the BSA – assessed a $1 million penalty against HAIDER for his above-referenced conduct. The Complaint seeks both to collect that assessed penalty and to enjoin Haider from participating, directly or indirectly, in the conduct of the affairs of any “financial institution” (as that term is used in the BSA) that is located in the United States or conducts business within the United States, for a term of years sufficient to prevent future harm to the public.
Manhattan U.S. Attorney Preet Bharara said: “Compliance officers perform an essential function in our society, serving as the first line of defense in the fight against fraud and money laundering. Unfortunately, as the Complaint alleges, Mr. Haider violated his obligations as MoneyGram’s Chief Compliance Officer. By allegedly failing to take the actions clearly required of him under the law, he allowed criminals to use MoneyGram to defraud innocent consumers and then launder the proceeds of their fraudulent schemes. As this case demonstrates, we are committed to working with FinCEN to enforce the requirements of the Bank Secrecy Act and hold individuals such as Mr. Haider accountable.”
FinCEN Director Jennifer Shasky Calvery said: “In my job, I’ve met hundreds of compliance officers and I know them to be some of the most dedicated and trustworthy professionals in the financial industry. FinCEN and our law enforcement partners greatly depend on their judgment and their diligence in our common fight against money laundering, fraud, and terrorist finance. Mr. Haider’s failures are an affront to his peers and to his profession. With his willful violations, he created an environment where fraud and money laundering thrived and dirty money rampaged through the very system he was charged with protecting. His inaction led to personal savings lost and dreams ruined for thousands of victims.”
As alleged in the Complaint, filed today in Manhattan Federal Court:
Since at least 2003, MoneyGram has operated a money transfer service that enables its customers to transfer money to and from various locations in the United States and abroad through its global network of agents and outlets. MoneyGram outlets are independently owned entities that MoneyGram has authorized to transfer money through its money transfer system. Typically, MoneyGram outlets are businesses (such as convenience stores and internet cafes) that offer money transfers through MoneyGram, but primarily provide other types of goods and services. MoneyGram agents are the individuals or entities that own and/or operate MoneyGram outlets.
As a money transmitter, MoneyGram is subject to, and must comply with, various requirements set forth in the BSA and its implementing regulations. As relevant here – and at all times relevant to the Complaint – MoneyGram was required to implement and maintain an effective AML program. MoneyGram was also required to file with FinCEN suspicious activity reports (“SARs”) identifying financial transactions that: (1) were sent by or through MoneyGram; (2) involved (individually or in the aggregate) funds of at least $2,000; and (3) MoneyGram knew, suspected, or had reason to suspect involved, among other things, the use of MoneyGram’s money transfer system to facilitate criminal activity. Such SARs were required to be filed within 30 days of MoneyGram detecting facts that may have constituted a basis for filing the SARs.
From at least 2003 through on or about May 23, 2008, HAIDER was MoneyGram’s Chief Compliance Officer. As such, HAIDER was responsible for ensuring that MoneyGram implemented and maintained an effective AML program and complied with its SAR-filing obligations.
Notwithstanding HAIDER’s obligations as MoneyGram’s Chief Compliance Officer, at all times relevant to the Complaint, HAIDER failed to ensure that MoneyGram (1) implemented and maintained an effective AML program and (2) fulfilled its obligation to file timely SARs. HAIDER’s failures included the following:
- Failure to Implement a Discipline Policy. HAIDER failed to ensure that MoneyGram implemented a policy for disciplining agents and outlets that MoneyGram personnel knew or suspected were involved in fraud and/or money laundering.
- Failure to Terminate Known High-Risk Agents/Outlets. HAIDER failed to ensure that MoneyGram terminated agents and outlets that MoneyGram personnel understood were involved in fraud and/or money laundering, including outlets that HAIDER himself was on notice posed an unreasonable risk of fraud and/or money laundering. For example, with respect to one such outlet: in 2004, HAIDER learned that the Toronto Police Department regarded the outlet as “dirty”; in 2005, 2006 and 2007, MoneyGram’s Fraud Department – which HAIDER supervised – identified the outlet as one of MoneyGram’s leading fraud outlets; in 2007, MoneyGram’s Fraud Department proposed to HAIDER (and others) that the outlet be terminated, and provided compelling evidence that the outlet was complicit in fraudulent schemes; and by the time Haider left MoneyGram in 2008, MoneyGram had received hundreds of reports from its customers linking the outlet to fraudulent activity.
- Failure to File Timely SARs. HAIDER failed to ensure that MoneyGram fulfilled its obligation to file timely SARs, including because: (1) HAIDER maintained MoneyGram’s AML program so that the individuals responsible for filing SARs were not provided with information possessed by MoneyGram’s Fraud Department that should have resulted in the filing of SARs on specific agents or outlets; and (2) HAIDER failed to provide adequate direction to MoneyGram staff regarding when to file SARs relating to fraud.
- Failure to Conduct Effective Audits of Agents/Outlets. HAIDER failed to ensure that MoneyGram conducted effective audits of agents and outlets, including outlets that MoneyGram personnel knew or suspected were involved in fraud and/or money laundering.
- Failure to Conduct Adequate Due Diligence on Agents/Outlets. HAIDER failed to ensure that MoneyGram conducted adequate due diligence on prospective agents, or existing agents seeking to open additional outlets, which resulted in, among other things, MoneyGram (1) granting outlets to agents who had previously been terminated by other money transmission companies and (2) granting additional outlets to agents who MoneyGram personnel knew or suspected were involved in fraud and/or money laundering.
As a result of HAIDER’s above-described AML failures, agents and outlets that MoneyGram personnel knew or suspected were involved in fraud and/or money laundering were allowed to continue to use MoneyGram’s money transfer system to facilitate their fraudulent schemes. The above-referenced failures continued throughout HAIDER’s employment at MoneyGram, and resulted in MoneyGram’s customers suffering substantial losses, as many were duped into using MoneyGram’s money transfer system to send significant sums of money to the perpetrators of fraudulent schemes.
Mr. Bharara thanked FinCEN for its extraordinary assistance in bringing this case, and its ongoing partnership with this Office in identifying and investigating potential BSA violations.
Mr. Bharara also thanked the Asset Forfeiture and Money Laundering Section of the U.S. Department of Justice, the United States Attorney’s Office for the Middle District of Pennsylvania, and the United States Postal Inspection Service for their assistance in connection with this case.
The case is being handled by Assistant U.S. Attorney Christopher B. Harwood from the Office’s Civil Frauds Unit.
U.S. v. Thomas Haider Complaint
Man Sentenced to 17 Years in Federal Prison for Trying to Get Teen to Perform Sexual Act over WebcamRead the Press Release
Memphis, TN – Gary Robert Davis, 49, of Ft. Myers, Florida, was sentenced to 17 ½ years, or 210 months, in federal prison yesterday following his guilty plea to one count of attempted sexual exploitation of children, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
In February of this year, Davis contacted a Memphis area woman over the internet and asked her to get a teenager to masturbate on webcam so Davis could watch it live in Florida on his smartphone. Davis even wired money to the woman to pay for the requested act. The woman reported Davis to the FBI's Child Exploitation Task Force, which opened an investigation. Agents recovered video surveillance that showed Davis at a Western Union, where the money transfer initiated, and chat conversations regarding the minor. Davis is already a registered sex offender, with three 1998 convictions for attempted sexual battery in Florida.
In addition to the prison sentence, U.S. District Judge Sheryl H. Lipman ordered Davis to serve five years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation Child Exploitation Task Force. Assistant U.S. Attorney Debra Ireland represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
Man Sentenced in White Plains Federal Court to 15 Months in Prison for Reckless Assault of Baby on Grounds of West PointRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEWART DANIEL HARBIN, 30, was sentenced yesterday to 15 months in prison by United States District Judge Cathy Seibel for his 2012 reckless assault of a baby while on the grounds of West Point Military Academy (“West Point”). The sentencing followed HARBIN’S guilty plea on March 13, 2014.
According to documents filed in this case and statements made in related court proceedings:
On October 17, 2012, at approximately 10:40 p.m., emergency personnel at West Point responded to a 911 call from the defendant’s home, a residence located within West Point. The emergency personnel transported the defendant’s 10-week-old infant child (the “Baby”) from the residence to Keller Army Community Hospital (“KACH”), West Point’s hospital. After examination at KACH, the Baby, at approximately 1:30 a.m. on October 18, 2013, was transported, via ambulance, to Westchester County Medical Center (AWCMC@). There, medical personnel determined that the Baby had rib fractures and an intracranial hemorrhage. Tests, including radiological studies, revealed rib fractures in at least two stages of healing. There were eight sub-acute (healing) fractures and one acute (new) rib fracture. The healing fractures were determined to be between 10 days and six weeks old, and were determined to have occurred on multiple occasions as determined by the different stages of healing. In addition, the tests performed on the Baby revealed evidence of a prior intracranial injury.
On March 13, 2014, Harbin pleaded guilty to recklessly assaulting the Baby. During the plea proceeding, the defendant stated that, “on or about October 17, 2012, in the County of Orange, New York, on the land belonging to West Point Military Academy, I, Stewart Harbin, caused serious physical injury to the brain of my son [name omitted], who was less than five years of age, specifically, approximately ten weeks old, by slamming or throwing the child so as to impact the child’s head on a hard surface or object.” HARBIN said, “Specifically, I put [the Baby] down hard onto a hard infant seat that had no give. We used this hard infant seat to secure him on the couch and within his crib and later in which I put [the Baby] down hard, causing his head to impact the hard surface of the infant seat, causing the brain to bleed.” At the plea proceeding, the Government underscored its view that, although HARBIN had admitted that he was the actor who acted upon the Baby and caused the injuries, the Government did not accept the notion that the brain injuries were sustained by putting the Baby down hard onto an infant seat. Judge Seibel inquired of Harbin: “When you say you put the infant down hard on the hard infant seat, do you mean that you slammed the child down or threw the child down?” Harbin stated, “Yes, ma’am.”
In sentencing HARBIN to 15 months’ imprisonment, Judge Seibel described the offense conduct as “horrifying.” Judge Seibel granted the defendant’s request to enter a residential treatment program for service-related Post Traumatic Stress Disorder before he begins serving his sentence. Judge Seibel ordered HARBIN to surrender to the Bureau of Prisons in six months. The Court also imposed a term of supervised release of three years.
Mr. Bharara praised the efforts of the FBI, the West Point Military Police, and the Westchester District Attorney’s Office in connection with this investigation.
The case is being handled by the White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
Local Tattoo Artist Sentenced on Federal Firearms ChargeRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Anthony Lee Erity (33, Kenneth City) to nine years and two months in federal prison for possessing a firearm and ammunition as a convicted felon. A federal jury found him guilty on June 25, 2014.
According to testimony and evidence presented at trial, on July 11, 2013, during an undercover operation at a local tattoo shop in Pinellas County, Erity sold a firearm and ammunition out of his car to a confidential informant. As a previously convicted felon, Erity was prohibited from possessing a firearm or ammunition under federal law. As the trial date approached in this case, Erity also took steps to flee the country and retaliate against a potential witness in the case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorneys Adam M. Saltzman and Simon A. Gaugush.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Lexington Man Sentenced to 27 Months for Mail Fraud and Money Laundering ConspiracyRead the Press Release
LEXINGTON, KY - A Lexington, Ky., man, who previously admitted conspiring to defraud wireless telephone companies out of hundreds of smartphones, has been sentenced to 27 months in prison.
On Wednesday, U.S. District Judge Joseph M. Hood sentenced 56-year-old Michael Whiteside for conspiring with others to commit mail fraud and to launder the proceeds of his scheme.
Whiteside admitted that he participated in a conspiracy to defraud Verizon Wireless, and other wireless telephone companies, by using false pretenses to buy numerous smartphones, such as iPhones and Samsung Galaxies, at the discounted contract rates. Whiteside recruited and induced other individuals to buy smartphones and sign service contracts when, in fact, these individuals had no intention of honoring their contracts and paying monthly data services fees to the telephone companies. After the purchases, Whiteside took possession of the fraudulently obtained smartphones and shipped them overseas for resale, at substantially higher prices.
Whiteside’s spouse, Julia Whiteside, has also been convicted and sentenced for her role in the conspiracy. Whiteside’s son, Marques Whiteside, has pleaded guilty to mail fraud and money laundering conspiracies and is scheduled to be sentenced on January 5, 2015.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Paul R. Johnson, Special Agent in Charge, U.S. Secret Service, jointly announced the sentence.
The investigation was conducted by the Lexington Police Department and the U.S. Secret Service. Assistant U.S. Attorney Andrew T. Boone is prosecuting this case on behalf of the federal government.
Lebanon Woman Pleads Guilty to Embezzlement SchemeRead the Press Release
Bianca Thompson, 42, of Lebanon, Tenn., pleaded guilty last week in United States District Court in Nashville to two counts of wire fraud and one count of making a false statement to an agent with the U.S. Secret Service, announced David Rivera, United States Attorney for the Middle District of Tennessee.
In a hearing before U.S. District Court Chief Judge Kevin Sharp, Thompson admitted to engaging in a scheme to embezzle more than $135,000 from her employer and a client.
Thompson stated that, while an employee of Performance Food Group Customized Distribution (“PFG”) in Lebanon, she falsely told a PFG client that PFG had made a mistaken payment of more than $135,000, and instructed the client to wire that amount to Thompson’s personal bank account. Thompson then converted the funds to her own personal use, including reducing her personal debts. Thompson further admitted during the plea hearing that she concealed from her employer that she had instructed a second client to wire funds to her personal account, and that she then converted those funds to her own personal use. When confronted about her conduct by the U.S. Secret Service, Thompson falsely stated to agents that she had transferred the funds received from one PFG client to another and falsely stated that she had not spent any of the funds.Thompson faces up to 20 years in prison on the wire fraud counts, and up to 5 years for the count of making a false statement to a federal investigator. Jones is scheduled to be sentenced on March 15, 2015.
The case was investigated by the U.S. Secret Service. The United States is represented by Assistant U.S. Attorney William F. Abely.
Lathrop Man Sentenced to over 8 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Jonathan Garcia, 24, of Lathrop, was sentenced today by United States District Judge Morrison C. England, Jr. to eight years and five months in prison for possession with the intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 7, 2013, Garcia drove to a residence in Manteca to deliver methamphetamine to a buyer. When he arrived, he was met by law enforcement officers who searched his car and found approximately 103 grams of 99% pure crystal methamphetamine in the center console and a loaded gun. During a subsequent search of Garcia’s residence, officers found an additional 110.8 grams of methamphetamine.
“As this lengthy sentence makes clear, trafficking methamphetamine is a serious offense that will be punished with the full weight of the law,” said Kim Wong, resident agent in charge HSI Stockton. “Left unchecked, this highly dangerous substance destroys lives and wreaks havoc on entire communities. HSI, together with its federal, state and local law enforcement partners, is committed to using every tool and authority at its disposal to combat the menace posed by meth.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Manteca Police Department. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
Kevin Scott Thibault Sentenced for Forgery of Signature of A U.S. District Court Judge and Mail FraudRead the Press Release
KNOXVILLE, Tenn. – On Dec. 18, 2014, Kevin Scott Thibault, 49, of Maryville, Tenn., was sentenced by the Honorable Pamela L. Reeves, U.S. District Judge, to serve 60 months in prison for forgery of the signatures of a district court judge and an officer of the U.S. District Court. Additionally, Judge Reeves ordered Thibault to serve 72 months in prison for mail fraud. These sentences will run concurrently.
Thibault pleaded guilty in August 2014 to a two-count indictment charging him with the forgery counts and a one-count information charging him with mail fraud. Thibault was also ordered to pay restitution in the amount of $380,340.12. Upon his release from prison, he will be supervised by the U.S. Probation Office for three years.
Thibault admitted to falsely representing himself as an attorney and agreeing to assist two individuals with the adoption of foster children in their custody. In May 2012, Thibault presented the individuals with fake adoption papers that he claimed had been filed in U.S. District Court, signed by U.S. District Judge Thomas A. Varlan, and certified by U.S. District Court Officer Kathy Keeton. An investigation revealed that neither Judge Varlan nor Keeton signed the documents and the signatures were forged.
In October 2012, Thibault demanded that the individuals sign a power of attorney permitting him to represent their interest in the alleged adoption proceedings. However, the power of attorney actually allowed him to conduct certain financial transactions on their behalf. According to the plea agreement, through the course of this scheme, Thibault obtained at least $400,000 from the victims to further his scheme to defraud and obtain money.
This investigation was handled by the Blount County Sheriff’s Office and Federal Bureau of Investigation. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
- Katy Man Faces Federal Charges After Illegally Using Company Credit Card to Purchase Firearms
Jury Convicts St. Joseph Truck Driver, Sex Offender of Transporting a Minor for ProstitutionRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a St. Joseph, Mo., commercial truck driver who is a registered sex offender has been convicted by a federal trial jury of transporting a minor across state lines for prostitution.
Tony Eugene Wardlow, 55, of St. Joseph, was found guilty on Wednesday, Dec. 17, 2014, of transporting a minor across state lines for prostitution. Wardlow remains in federal custody until his sentencing.
Wardlow was self-employed as a commercial truck driver, doing business as Prideco, LLC. Wardlow is a registered sex offender who was convicted in 1997 in Nodaway County, Mo., of sexual abuse, endangering the welfare of a child and sexual misconduct (involving two separate child victims). Wardlow also has prior felony convictions for being a felon in possession of firearms and possessing methamphetamine.
Co-defendant Thomas Farrell, 49, of DeKalb, Mo., pleaded guilty on Feb. 7, 2014, to aiding and abetting Wardlow’s transportation of the minor victim to Texas for prostitution. Farrell was the owner of Farrell Trucking & Hay, LLC.
Evidence submitted during the trial indicated that Wardlow paid the minor victim for sex on multiple occasions while she was working as a prostitute on Independence Avenue in Kansas City, Mo. She was under 18 years of age at this time. Wardlow took her out of town in his truck on several occasions, including a trip to Texas in September 2011. Farrell accompanied them. During the trip, Wardlow engaged in prostitution activity with the minor victim multiple times, both in Wardlow’s truck and in hotels.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour before returning the verdict to U.S. District Judge Dean Whipple, ending a trial that began Monday, Dec. 15, 2014.
Under federal statutes, Wardlow is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Daly and David Luna. It was investigated by the FBI, the Prairie Village, Kan., Police Department, the Kansas City, Mo., Police Department, the U.S. Department of Transportation, the Missouri State Highway Patrol and the Overland Park, Kan., Police Department in conjunction with the Human Trafficking Rescue Project.Judge Fashions Long Prison Term for Sex TraffickerRead the Press Release
PHILADELPHIA – Christian Dior Womack, a/k/a “Gucci Prada,” 30, of Chester, PA, was sentenced today to life in prison for sex trafficking females, including a minor, for prostitution. Womack pleaded guilty, on July 23, 2014, during jury selection for his federal trial. He operated a prostitution venture, in Philadelphia and elsewhere, recruiting young females, one of whom was a minor, to work as prostitutes. He also engaged in acts of physical violence, coercion, and threats of physical harm to maintain the participation of the females.
U.S. District Court Judge Mitchell Goldberg sentenced Womack to life for sex trafficking of a minor, and for sex trafficking by force.
Charged with Womack was Rashidah Brice, a/k/a “Camille,” a/k/a “Milly,” 24, also of Chester, PA. As part of their venture, Womack and Brice allegedly created internet advertisements in which they advertised these females as available for purchase for purposes of prostitution. The advertisements featured pictures of the females scantily clad, and provided a phone number to call to arrange a meeting with the females. Brice previously pleaded guilty. She was sentenced in October to 185 months in prison.
The case was investigated by the FBI, the Philadelphia Police Department Special Victims Unit, and the Tinicum Township Police Department. It was prosecuted by Assistant United States Attorneys Michelle Morgan and Melanie Babb Wilmoth.
Jicarilla Apache Man Sentenced to Fifty Months in Federal Prison for Assault ConvictionRead the Press Release
Defendant Prosecuted as Part of Federal Initiative to Address
the Epidemic Incidence of Violence Against Native WomenALBUQUERQUE – Robert Yazzie, Jr., 49, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., was sentenced this afternoon for his conviction on a federal assault charge arising out of a violent attack on his intimate partner. Yazzie will serve 50 months in federal prison followed by two years of supervised release.
Yazzie was arrested on May 27, 2014, on an indictment charging him with assault resulting in serious bodily injury. The indictment alleged that Yazzie assaulted the victim on May 17, 2013, and caused her to suffer serious bodily injury.On July 24, 2014, Yazzie pled guilty to the indictment and admitted assaulting his intimate partner by hitting her in the face and head multiple times with a closed fist. Yazzie acknowledged that as a result, the victim sustained bilateral nasal bone fractures and hematomas to the head and face. The assault occurred within the Jicarilla Apache Reservation.
This case was investigated by the Jicarilla Apache Tribe Police Department and was prosecuted by Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Investment Adviser Convicted of Stealing Client FundsRead the Press Release
BOSTON – A Pennsylvania woman pleaded guilty yesterday in U.S. District Court in Boston to orchestrating a multi-million dollar investment fraud scheme that harmed scores of victims.
Patricia S. Miller, 68, pleaded guilty to five counts of wire fraud after being indicted in June 2014. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for March 10, 2015.
Miller used her position as a trusted financial adviser, as well as her association with a Massachusetts-based broker dealer, to obtain money from clients for purported investments that she never made on behalf of clients. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her “investment clubs” would be placed in fixed-income notes and other investments. Miller was able to obtain over $2.5 million from more than 50 clients for these purported investment clubs. Instead of investing the money as promised, she misappropriated client funds for her own use.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. U.S. Attorney Ortiz also expressed appreciation for the help and cooperation her office received from the U.S. Attorney’s Office for the Western District of Pennsylvania and the Federal Bureau of Investigation, Pittsburgh Field Division. The case is being prosecuted by Assistant U.S. Attorney Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
If you believe you are a victim of the crimes alleged against Patricia Miller, you may contact the United States Attorney’s Office for the District of Massachusetts at [email protected]. Identified victims will receive notification through the automated victim notification system. If you have not received notification, and believe you should be included as a victim in this case, please contact the U.S. Attorney’s Office for the District of Massachusetts at [email protected].Pittsburgh-Area Victims:
If you are a victim from the Pittsburgh, Pa. area, please contact the Victim Witness Unit at the U.S. Attorney’s Office for the Western District of Pennsylvania at (412) 644-3500. Pittsburgh victims may also find information online at http://www.justice.gov/usao/paw.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force, chaired by Attorney General Eric Holder, includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on December 17, 2014, and entering pleas of Not Guilty were:
• DONALD MITCHELL JOHNSON, a 48-year-old resident of Alhambra, California, appeared on charges of conspiracy to commit access device fraud and fraud and related activity in connection with access devices. If convicted of the most serious charges contained in the indictment, LIU faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the U.S. Secret Service. PACER Case Reference: 14-28
• EDWARD EARL WERNER, a 42-year-old resident of Hot Springs, appeared on charges of felon in possession of firearms. If convicted of the charge contained in the indictment, WERNER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sanders County Sheriff’s Office. PACER Case Reference: 14-46
Appearing before U.S. Magistrate Judge Strong in Great Falls on December 17, 2014, and entering pleas of Not Guilty were:
• JOSE LUIS ALVARADO, a 27-year-old citizen of Mexico appeared on charges of conspiracy to possess with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charge contained in the indictment, ALVARADO faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Russell Country Drug Task Force, and Homeland Security Investigations. PACER Case Reference: 14-96
• BRANDON MICHAEL JACKSON, a 29-year-old resident of Wolf Point appeared on charges of burglary. If convicted of the charge contained in the indictment, JACKSON faces 20 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by Fort Peck Tribes Department of Law and Justice PACER Case Reference: 14-78
Appearing before U.S. Magistrate Judge Ostby in Billings on December 17, 2014, and entering pleas of Not Guilty were:
• ZHE LIU, a 23-year-old resident of Alhambra, California, appeared on charges of conspiracy to commit access device fraud and fraud and related activity in connection with access devices. If convicted of the most serious charges contained in the indictment, LIU faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the U.S. Secret Service. PACER Case Reference: 14-119
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case. To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment: 26 Pounds of Methamphetamine Hidden in Driver’s Spare TireRead the Press Release
KANSAS CITY, KAN. – A California man was indicted Thursday on a federal charge of transporting approximately 26 pounds of methamphetamine hidden in a spare tire, U.S. Attorney Barry Grissom said.
Armondo Medina Gomez, 29, North Hollywood, Calif., is charged with one count of possession with intent to distribute methamphetamine. A criminal complaint filed in the case alleges that on Dec. 16, 2014, the Kansas Highway Patrol stopped a 2004 Ford on Interstate 70 near mile post 198 in Russell County, Kan. With the help of a dog trained to detect drugs, investigators found approximately 26 pounds of methamphetamine hidden in a spare tire in the vehicle.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Alleges Philadelphia Man Stole IdentitiesRead the Press Release
Peter Fields, also known as Charles Smith, 48, of Philadelphia, PA, was charged today by indictment with mail fraud, bank fraud, access device fraud and aggravated identity theft, announced United States Attorney Zane David Memeger. Fields obtained the personal and financial information of victims and used that information to obtain credit accounts in the victims’ names, add himself as an authorized user to victims’ credit accounts, manufacture fraudulent checks using victims’ account numbers, and fraudulently obtain utility services in the names of victims for others.
If convicted, Peter Fields faces a maximum possible sentence of 73 years in prison and a fine of $2 million.
The case was investigated by United States Postal Inspection Service, with the assistance of the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney K.T. Newton.