Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
5 February 2015
Vidalia, Georgia Attorney Indicted on Federal Fraud and Identity Theft ChargesRead the Press Release
Savannah, GA: Wilson R. Smith, 63, a licensed attorney from Vidalia, Georgia, was indicted this week by a federal grand jury sitting in Savannah on charges related to an alleged scheme to settle his clients’ cases without their knowledge and to steal the settlement proceeds. The indictment alleges that Smith stole over $1 million in fraudulently obtained settlement proceeds.
Smith faces federal charges of mail fraud and bank fraud. If convicted of those two charges, Smith faces a maximum sentence of 50 years in prison and a $1,250,000 fine. Smith also faces a count of aggravated identity theft. If convicted of that charge, Smith would receive an additional two-year prison sentence, consecutive to any other sentence imposed. U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Smith already faces state charges of theft by deception and forgery. Smith’s state case was investigated by the Georgia Bureau of Investigation and is being prosecuted by District Attorney Hayward Altman of the Middle Judicial Circuit. Since his arrest on state charges, Smith has remained in custody at the Toombs County Jail.
First Assistant United States Attorney James D. Durham is prosecuting the federal case on behalf of the United States. The investigation of this case remains ongoing.
Unregistered Sex Offender Sentenced to PrisonRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Dennis James Harper Jr., 51, of Pine Hill, Alabama, was sentenced to a year and a day in prison for failing to register as a sex offender. Harper was also sentenced to five years of supervision by the United States Probation Office upon his release from custody.
Harper was required to register as a sex offender as a result of a 1997 conviction for Sexual Abuse, First Degree from Coffee County. As part of his guilty plea, Harper admitted that he moved to Massachusetts four days after his last registration as a sex offender in 2012. After he moved to Boston, Harper never notified Alabama authorities of his new location, nor did he register as required in Massachusetts.
The case was investigated by the United States Marshals Service and prosecuted by Special Assistant United States Attorney Dominic Rossetti.
Una Pareja De Roseville Se Declara Culpable De Un Fraude De Modificacion De Prestamo Y Rescate De Ejecucion Hipotecario Dirigido A La Comunidad De Habla HispanaRead the Press Release
40 acusados de delitos federales por armas de fuego en los condados de Fresno, Tulare y Madera en el 2013; sentenciados a prisión federal en el 2013
SACRAMENTO, Calif. —Martin Wayne Flanders, 50, anteriormente de Roseville, y Ligia Sandoval Spafford, 48, de Roseville, se declararon culpables hoy de fraude por correo por su participación en un esquema de fraude dirigido a propietarios en dificultades, anunció Benjamín Wagner, procurador federal del Distrito Oriental de California.
De acuerdo con documentos del tribunal, entre 2008 y 2010, Flanders facturó a clientes tarifas adelantadas a cambio de un número de servicios financieros, incluyendo modificaciones de préstamo, auditorías de préstamo de hipoteca, reparación de créditos, alivio de deudas, solicitud de bancarrota, y un programa para vender casas a “inversores” con una opción de alquiler con derecho a compra. Flanders y Sandoval comercializaron estos servicios a propietarios en dificultades económicas con particular énfasis a aquellos de habla hispana. Durante un programa de radio transmitido dos veces a la semana por Radio Luz, una estación de radio cristiana de habla hispana en la Bay Area, Sandoval promocionó los servicios que ella y Flanders ofrecían. Flanders también se anunció en una estación de televisión de habla hispana, Univision, y en revistas hispanas. Aproximadamente un 98% de los clientes de los demandados eran de origen hispano, algunos de los cuales hablaban muy poco o nada de inglés. Sandoval habla español; Flanders no lo habla.
Flanders y Sandoval hicieron numerosas declaraciones falsas a inversores sobre el éxito de los programas que ofrecían o reembolsos que estarían disponibles si los programas no tenían éxito. “Ofertas fantasma” – ej., ofertas ficticias de comprar la propiedad de la víctima a través de ventas ràpidas – y “quiebras esqueleto” – ej., simulaciones de peticiones de bancarrota que fueron desechadas ràpidamente por el tribunal de bancarrotas – también fueron usadas por Flanders o Sandoval para tratar de retrasar el proceso de ejecución hipotecaria. Al menos de 25 a 30 personas pagaron por los servicios y no los recibieron o no recibieron los reembolsos cuando los programas fallaron en entregar los reembolsos prometidos. El total de pérdidas para las víctimas es al menos de $120,000. Algunos propietarios que no fueron capaces de obtener ayuda fueron embargados por sus prestamistas.
“Flanders y Sandoval se aprovecharon de las víctimas con escasos conocimientos de inglés, cuando esas víctimas eran màs vulnerables financieramente,” dijo Benjamín Wagner, procurador federal del Distrito Oriental de California. “Esquemas de este tipo de fraude predador han sido y continuaràn siendo uno de los focos principales de nuestros esfuerzos en procesar fraudes con hipotecas.”
Este caso es el producto de una investigación por la Oficina Federal de Investigación. El procurador federal asistente Todd A. Pickles està procesando el caso.
Flanders ha estado detenido desde su arresto en octubre de 2012. Sandoval està actualmente libre de custodia.
Flanders y Sandoval estàn programados para ser sentenciados por el Juez de Distrito de los Estados Unidos Troy L. Nunley el 11 de junio de 2015. Flanders y Sandoval se enfrentan a una pena màxima reglamentaria de 20 años en prisión y una multa de $250,000. La sentencia actual, sin embargo, serà determinada a discreción del tribunal después de considerar cualquier factor reglamentario aplicable y las Directrices Federales de Sentencia, que toman en consideración un número de variables.
Two Former Japanese Automobile Parts Manufacturer Executives Indicted for Roles in Conspiracy to Fix Prices and for Obstruction of JusticeRead the Press Release
A Detroit federal grand jury returned a two-count indictment against two former executives of a Japanese automotive parts manufacturer for their participation in a conspiracy to fix prices and rig bids of automotive parts and for obstruction of justice for ordering the destruction of evidence related to the conspiracy, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hiroyuki Komiya and Hirofumi Nakayama, former executives of Mitsuba Corporation, with conspiring to fix the prices of various automotive parts, including windshield wiper systems and components, sold to Honda Motor Company Ltd., Nissan Motor Co. Ltd., Toyota Motor Corp., Chrysler Group, LLC, Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries in the United States and elsewhere.
Komiya and Nakayama are also charged with knowingly and corruptly persuading, and attempting to persuade, employees of Mitsuba to destroy documents and delete electronic data that may contain evidence of antitrust crimes in the United States and elsewhere.
“These charges demonstrate the Antitrust Division’s continued commitment to prosecuting individuals who commit criminal antitrust violations,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s Criminal Enforcement Program. “Because these same individuals committed the additional crime of obstructing the investigation, they also serve as cautionary tale for those who are tempted to try to thwart the Antitrust Division’s investigative activities by destroying evidence.”
Komiya participated in the conspiracy as Mitsuba Director of Automotive Sales. In 2007, he was promoted to Executive Managing Officer and Vice President of Sales. Nakayama was the Office Manager of Mitsuba’s Nagoya sales office. In 2005, he was promoted to Sales Operating Officer.
The indictment alleges, among other things, that beginning at least as early as April 2000 and continuing until at least February 2010, Komiya, Nakayama and co-conspirators participated in and directed, authorized or consented to the participation of subordinate employees in, meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the price to be submitted to automobile manufacturers. Upon learning of the existence of this investigation, Komiya and Nakayama also urged their subordinates to delete and destroy documents related to this collusion.
Mitsuba is a corporation organized and existing under the laws of Japan with its principal place of business in Gunma, Japan. On Nov. 6, 2013, Mitsuba pleaded guilty and agreed to pay a $135 million criminal fine for its role in the conspiracy as well as obstruction of justice.
Including Komiya and Nakayama, 52 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing, and bid rigging in the auto parts industry. Additionally, 33 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
Komiya and Nakayama are charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. The maximum penalty for obstruction of justice is 20 years in prison and a $250,000 criminal fine for individuals.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Komiya et al Indictment
Two Former Danbury Residents Involved in U.S. Postal Money Order Fraud Scheme Are SentencedRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two former residents of Danbury were sentenced yesterday in Hartford federal court for participating in a conspiracy involving the theft of monies from the U.S. Postal Service. U.S. District Judge Michael P. Shea sentenced TONY STERLIN CANTAVE, 34, to 13 months of imprisonment, followed by two years of supervised release, and VENUS VERGES, 34, to three years of probation, during which she must perform 100 hours of community service.
According to court documents and statements made in court, between August and October 2013, CANTAVE and VERGES purchased U.S. Postal Service money orders in amounts ranging from $400 to $1000 at post offices in Stamford, Bridgeport, Greenwich, and lower Westchester County, N.Y. After the money orders were purchased, the defendants used a mobile banking application to deposit the funds into bank accounts they controlled. Shortly after depositing the funds, the defendants returned to the post offices from which the respective money orders had been purchased, failed to disclose that they had deposited the funds, returned the money orders and were refunded their money.
CANTAVE and VERGES stole approximately $12,300 from the U.S. Postal Service during the course of this scheme.
CANTAVE and VERGES were arrested on June 20, 2014. On August 20, 2014, CANTAVE pleaded guilty to one count of conspiracy to convert public money and two counts of conversion of public money, and VERGES pleaded guilty to one count of conspiracy to convert public money and one count of conversion of public money.
Judge Shea ordered both defendants to pay full restitution.
This matter was by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney John H. Durham.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Two Former Bridgeport Police Officers Sentenced to Prison for Using Unreasonable Force During ArrestRead the Press Release
Follow @USAO_CT
Deirdre M, Daly, United States Attorney for the District of Connecticut, announced that two former Bridgeport Police officers were sentenced today in Bridgeport federal court for violating an individual’s civil rights by using unreasonable force during the course of an arrest. U.S. District Judge Jeffery Alker Meyer sentenced both ELSON MORALES, 43, and JOSEPH LAWLOR, 41, to three months of imprisonment and six months of supervised release.
According to court documents and statements made in court, on May 20, 2011, officers MORALES and LAWLOR engaged in a high speed chase of a van driven by an individual who was suspected of having a firearm and had failed to stop at traffic stop. After a further foot pursuit in Beardsley Park in Bridgeport, the individual was apprehended by MORALES who used his department-issued Taser to incapacitate the individual. Despite the fact the individual was on the ground and effectively incapacitated by the initial use of the Taser, MORALES deployed the Taser a second time and LAWLOR kicked the individual several times.
“The use of unreasonable force is illegal,” stated U.S. Attorney Daly. “When a police officer uses unreasonable force, he both violates the victim’s civil rights and undermines the community’s trust in law enforcement. The vast majority of Bridgeport Police Department members, and all law enforcement officers, are public servants who dedicate their lives to protecting the public. However, any police officer who crosses the line during an arrest risks federal prosecution and, as this case demonstrates, incarceration.”
On June 10, 2014, MORALES and LAWLOR each pleaded guilty to one count of deprivation of rights under color of law.
MORALES and LAWLOR have resigned from the Bridgeport Police Department.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys Anastasia E. King and David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Two Correctional Officers, Two Inmates and A Jail Contract Employee Convicted in Baltimore Jail Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – A federal jury convicted five defendants today for participating in a racketeering conspiracy and drug conspiracy, involving the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC):
Former Correctional Officers: Ashley Newton, age 31, of Baltimore, and
Travis Paylor, age 27, of Baltimore.Inmates: Joseph Young, a/k/a Monster, age 32, of Baltimore, and
Russell Carrington, a/k/a Rutt, age 34, of Baltimore.Former Contract employee with DPSCS: Michelle McNair, age 24, of Baltimore.
Young, McNair and Newton were also convicted of money laundering conspiracy. The jury acquitted former correctional officers Clarissa Clayton, age 25, of Brooklyn Park, Maryland; Riccole Hall, age 27, of Glen Burnie; and Michelle Ricks, age 45, of Edgewood, Maryland of all charges.
The convictions were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS); Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Marilyn Mosby.
“This case exposed rampant crime and corruption inside jailhouse walls, which spawns more crime in the streets,” said U.S. Attorney Rod J. Rosenstein. “Continued vigilance will be needed to make sure that jails help prevent crime instead of facilitating it.”
This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. Investigations are continuing.
According to court documents, the Black Guerilla Family (BGF) has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to evidence presented at trial, Newton and Paylor were correctional officers (COs) at the BCDC who smuggled contraband into the jail for distribution by BGF inmates. In return, the COs received payments, gifts or a share of the profits.
According to trial evidence, Newton had sexual relationships with two BGF inmates, and smuggled pills, marijuana and tobacco for Duron Young, a/k/a Pinkey. During the conspiracy, Newton smuggled pills for Pinkey almost daily. She also opened cells doors of inmates for BGF members, which resulted on at least one occasion in the beating of an inmate by the BGF. Newton also warned the BGF of upcoming prison searches by correctional officers. Newton arranged for money to be sent to inmates and facilitated phone conversations between inmates, including calls from other prisons to BGF leader Tavon White.
In 2012, Michelle McNair, who worked in a jail kitchen as a contract employee, smuggled marijuana, pills and other contraband into BCDC to repay BGF leader Tavon White and in exchange for Green Dot transfers of funds. McNair also smuggled marijuana to BGF inmate Jamar Anderson inside BCDC. McNair also transferred contraband from one facility to another within the jail.
Evidence presented at trial showed that Young was a high-ranking BGF member, and a rival of Tavon White within BGF while he was incarcerated at BCDC beginning in early 2012. Young was expected to replace Tavon White as BGF’s leader inside the jail. In October and November 2012, Young sold marijuana, prescription pills, cell phones and tobacco that correctional officers smuggled into the jail. Young directed another inmate, Cyrus Beads, to buy marijuana at $350 an ounce and package it in one-gram bags, which he would sell for $50 inside BCDC. Young explained that they would make a $1,050 profit from each ounce. Young had a romantic relationship with Raylanair Reese, age 32, who lived outside the jail and supplied Young with cell phones and Percocet pills. Reese pled guilty earlier.
Carrington was a BGF leader incarcerated in BCDC who sold Percocet pills which COs smuggled into the jail for him. Carrington had a sexual relationship with a correctional officer, who helped Carrington finance his drug operations by keeping Green Dot cards for him. In 2012, Carrington introduced Tavon White and a correctional officer to a source of supply for Percocet pills. He also attempted to recruit other correctional officers to smuggle contraband into BCDC. McNair also helped Carrington with is drug operations, but quit after Carrington failed to pay her.
The defendants face a maximum penalty of 20 years in prison for the racketeering and drug conspiracies. Young, McNair and Newton also face a maximum sentence of 20 years in prison for the money laundering conspiracy. Their sentencings have not been scheduled.
Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers. Thirty-five defendants pleaded guilty; eight defendants went to trial and one defendant has died.
BGF leader Tavon White, age 37, previously pleaded guilty to his participation in the racketeering conspiracy and testified at the trial. He is scheduled to be sentenced on February 9, 2015 at 11:00 a.m. Another BGF inmate, Derius Duncan, age 24 of Baltimore, is scheduled to be sentenced on February 11, 2015 at 11:00 a.m.
BGF members Jamar Anderson a/k/a “Hammer,” and Kenneth Parham, both age 24; and Jermaine McFadden, age 25, an associate of BGF; also pleaded guilty to the racketeering enterprise. Parham was sentenced on February 24, 2014 to151 months in prison, McFadden was sentenced on March 12, 2014 to 140 months and Steven Loney, who was the BGF commander of the North Building of the jail was sentenced on January 14, 2014 to nine years in prison.
To date, at least eight of the correctional officers have been sentenced to up to 42 months in prison. Chania Brooks, age 29, of Baltimore, is scheduled to be sentenced tomorrow, February 6, 2015.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Tonya Jennissen Sentenced to 30 Months in Prison and 5 Years of Supervised Release for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Tonya Jennissen, 37, of Claremont, New Hampshire was sentenced to 30 months in prison, having pled guilty to one count of possessing child pornography. United States District Judge Geoffrey W. Crawford, sitting in Rutland, also sentenced Jennissen to 5 years of supervised release.
Court records indicate that, in 2012, Jennissen engaged in an online sexual relationship with a 15-year-old Vermont boy that lasted about two months. In the course of the relationship, Jennissen and the victim engaged in an internet Skype session, which resulted in the creation of sexually explicit images of the victim. These images led to Jennissen=s conviction. The relationship ended when the victim=s father reviewed his son=s computer records, discovered the relationship, and reported the matter to Vermont law enforcement. Law enforcement searched Jennissen=s New Hampshire residence and seized her computer. Search of that computer revealed, among other things, images of unidentified nude infants and toddlers. The computer also contained a collection of anime depicting adults sexually assaulting young children.
For her crime, Jennissen faced a maximum penalty of 10 years in prison, and up to a $250,000 fine. In sentencing Jennissen, Judge Crawford cited the need to eliminate adult-child sexual contact via the internet and the dangers associated with such sexual contact.
The investigation was led by the Federal Bureau of Investigations and the Chittenden Unit for Special Investigations. Assistant United States Attorney Christina E. Nolan prosecuted the case. Jennissen is represented by Steven Barth, Esq., of the Federal Public Defender=s Office.
This prosecution was part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices and the Internet Crimes Against Children Task Force, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
TSA Employee Indicted on Child Pornography ChargesRead the Press Release
LITTLE ROCK –A Transportation Security Administration employee has been indicted on child pornography charges. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Raymond Kinney, age 54, of Jacksonville, a Transportation Security Inspector for the TSA, was indicted by a federal grand jury on February 4, 2015, on one count of distribution of child pornography.
Kinney was arrested on Wednesday, January 28, when he drove to meet two minors with whom he planned to have sex, according to online chats that were recovered from his account. A search incident to arrest revealed that Kinney had brought sex toys and children’s clothing with him.
According to the criminal complaint, this investigation began in January 2015, when undercover officers were monitoring a social networking site and encountered an individual seeking a minor for sexual contact. Through further conversations, this individual sent several pictures and videos of child pornography over the internet. They ultimately arranged a meeting at a motel, and when Raymond Kinney arrived, officers arrested him.
The indictment alleges that on or about January 27, 2015, Kinney knowingly distributed child pornography. If convicted, Kinney faces at least five but not more than twenty years of imprisonment, up to a $250,000 fine, and five years of supervised release.
The investigation was conducted by Homeland Security Investigations with substantial assistance from local task force officers. The case is being prosecuted by Assistant United States Attorneys Allison W. Bragg and Kristin Bryant.
The charges set forth in an Indictment are allegations. The defendant is presumed innocent until proven guilty.
Summerville Man Sentenced to 12 Years in Federal PrisonRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Hadden Andre Smith was sentenced today in federal court in Charleston, South Carolina, for conspiracy to possess with intent to distribute cocaine and marijuana, a violation of 21 U.S.C. § 841; possession of firearms in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c); and conspiracy to launder money, a violation of 18 U.S.C. § 1956. United States District Judge David C. Norton of Charleston sentenced Smith to 12 years imprisonment to be followed by 4 year supervised release. Smith also agreed to forfeit over $248,000 that authorities seized from his residence.
Evidence presented at the change of plea hearing established that on July 31, 2012, upon executing a search warrant at Smith's residence, Berkeley County Sheriff's Office Deputies found approximately $248,000 cash, 1.8 kilograms of marijuana, two firearms and drug packaging paraphernalia. Further investigation by the Internal Revenue Service Criminal Investigations Division revealed that Smith used drug proceeds to purchase several vehicles, while having the vehicle titles put in the name of third parties.
IRS-CI Special Agent In Charge Thomas J. Holloman stated, “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations. IRS Criminal Investigation is committed to taking the profit away from the drug traffickers and putting those individuals in jail.”
The case was investigated by agents of the Internal Revenue Service Criminal Investigations Division, Drug Enforcement Administration and Berkeley County Sheriff's Office. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.Statement of Manhattan U.S. Attorney Preet Bharara on the Convictions of Malcolm Smith and Vincent TaboneRead the Press Release
“As the jury unanimously found, the give-and-take of the political process should not be the giving and taking of bribes, which is what Malcolm Smith and Vincent Tabone tried to make it. Smith gave, and Tabone took, a $25,000 cash bribe to permit Smith to run for New York City Mayor as a Republican. Smith and Tabone were not alone in this scheme – Smith also bribed Daniel Halloran, another Republican Party official. And sadly, this was just one of many pockets of corruption this Office has uncovered in New York, which has become the ‘show me the money’ state. It should not be asking too much to expect public officials at least to obey the law. This Office will continue the vigorous prosecution of political corruption until every public official understands that violating the public trust will likely land you in prison.”
St. Thomas Man Sentenced to Federal Prison for Possession of FirearmRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Carlos Jamoi Norman, 23, to 30 months in federal prison for possession of a firearm with an obliterated serial number, United States Attorney Ronald W. Sharpe announced.
On November 18, 2014, Norman pleaded guilty to a one-count indictment. Norman has been in custody since December 31, 2014.
According to documents filed in court, Norman was involved in an altercation in the Oswald Harris Court housing community during which shots were fired. When Virgin Islands police officers arrived at the scene, they were given descriptions of the persons discharging the firearms. Officers proceeded to go to each apartment to talk to the occupants. As officers approached the apartment in which Norman was located, he got up and ran. Norman was captured at the back door of the apartment. During a search of Norman, officers found a black holster on his waist. A search of the apartment revealed a Springfield Armory XD, .40 caliber handgun with an obliterated serial number.
In addition to a prison term, Norman was sentenced to three years of supervised release and ordered to pay a $100 special assessment.
The case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by former Assistant U.S. Attorney Ishmael Meyers, Jr. and Assistant U.S. Attorney Nelson L. Jones.
St. John Man Sentenced to 17 Months in Prison for Bank FraudRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez today sentenced Davidson L. Alfred, 54, of St. John, to 17 months in prison and two years of supervised release for bank fraud, United States Attorney Ronald W. Sharpe announced. Judge Gomez ordered Alfred to serve his sentence consecutively to a 16-month sentence he received on January 29, 2015, for violating the conditions of his supervised release in another criminal case, United States v. Alfred, Criminal No. 12-cr-36. At the conclusion of Thursday’s sentencing hearing, Alfred was remanded to the custody of the United States Marshals Service to begin serving his sentence.
Court records show that Alfred pleaded guilty to count one of an indictment, which charged him with presenting for payment a forged check to Banco Popular de Puerto Rico in the amount of $2,500. As part of his guilty plea, Alfred also admitted that he presented additional forged checks drawn on the same account, totaling approximately $44,450.00.
The case was investigated by the Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorney Kim L. Chisholm.
Somali Citizen Sentenced to 15 Years in Federal Prison for Conspiring to Provide Material Support to Al-ShabaabRead the Press Release
Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas, FBI Special Agent in Charge Christopher Combs and Chief Patrol Agent Rudolfo Karisch of the U.S. Border Patrol’s Del Rio Sector announced today that Abdinassir Mohamud Ibrahim was sentenced to 15 years in federal prison for conspiring to provide material support to Al-Shabaab, a designated foreign terrorist organization, and for making a false statement in an immigration matter.
Ibrahim, 43, a citizen of Somalia, was charged in a two-count superseding information, returned on July 31, 2014 and unsealed today in San Antonio, and pleaded guilty to both counts of the information on July 31, 2014. Ibrahim admitted that from about May 18, 2010, to about Jan. 31, 2014, he knowingly conspired to provide material support and resources, specifically sending emails enlisting support for al-Shabaab and making a cash payment to a known member of al-Shabaab for the benefit of the organization. Ibrahim knew at the time that al-Shabaab was designated by the United States as a foreign terrorist organization.
Ibrahim also pleaded guilty to making a false statement in an immigration matter. According to the information, Ibrahim knowingly lied in his application for naturalization as he had previously lied on his request for refugee status, falsely claiming that he was of a member of the minority Awer clan in Somalia and subject to persecution by the majority Hawiye clan. However, Ibrahim was actually a member of the Hawiye clan and not subject to persecution. Ibrahim also admitted he had lied on his naturalization application by having previously lied on his refugee application by falsely claiming that he had not provided material support to a terrorist group, when he had in fact provided material support in the form of cash to an al-Shabaab member.
The case was investigated by the FBI and the Border Patrol together as part of the San Antonio Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Mark Roomberg and Christina Playton for the Western District of Texas.
Somali Citizen Sentenced to 15 Years in Federal Prison for Conspiring to Provide Material Support to Al-ShabaabRead the Press Release
This afternoon in San Antonio, 43-year-old Abdinassir Mohamud Ibrahim, a citizen of Somalia, was sentenced to 15 years in federal prison for conspiring to provide material support to Al-Shabaab, a designated foreign terrorist organization, and for making a false statement in an Immigration matter announced Assistant Attorney General for National Security John Carlin, Acting United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division and Chief Patrol Agent Rodolfo Karisch, U.S. Border Patrol, Del Rio Sector.
Ibrahim, 43, a citizen of Somalia, was charged in a two-count superseding information, returned on July 31, 2014 and unsealed today in San Antonio, and pleaded guilty to both counts of the information on July 31, 2014. Ibrahim admitted that from about May 18, 2010, to about Jan. 31, 2014, he knowingly conspired to provide material support and resources, specifically sending emails enlisting support for al-Shabaab and making a cash payment to a known member of al-Shabaab for the benefit of the organization. Ibrahim knew at the time that al-Shabaab was designated by the United States as a foreign terrorist organization.
Ibrahim also pleaded guilty to making a false statement in an immigration matter. According to the information, Ibrahim knowingly lied in his application for naturalization as he had previously lied on his request for refugee status, falsely claiming that he was of a member of the minority Awer clan in Somalia and subject to persecution by the majority Hawiye clan. However, Ibrahim was actually a member of the Hawiye clan and not subject to persecution. Ibrahim also admitted he had lied on his naturalization application by having previously lied on his refugee application by falsely claiming that he had not provided material support to a terrorist group, when he had in fact provided material support in the form of cash to an al-Shabaab member.
“Protecting Americans from the threat of terrorism both at home and abroad is the highest priority of this office, and today’s sentencing is yet another victory in that fight," said SAC Christopher Combs, San Antonio FBI. “FBI's Joint Terrorism Task Force (JTTF) is dedicated to investigating and vigorously prosecuting anyone who provides support or resources to terrorists or foreign terrorist organizations. We commend the hard work, dedication, and exceptional coordination of the local state and federal agencies assigned to the Joint Terrorism Task Force who made this case a success.”
“This conviction highlights the greater interagency cooperation that works to safeguard our communities against those that wish to do us harm,” said Chief Patrol Agent Rodolfo Karisch, U.S. Border Patrol, Del Rio Sector. “I applaud the hard work and dedication of all the men and women who protect our country on a daily basis.”
The case was investigated by the FBI and the Border Patrol together as part of the San Antonio Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Mark Roomberg and Christina Playton for the Western District of Texas.
Sentencings for February 5, 2015Read the Press Release
Abraham Cabrera-Bedolla, 29, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 5, 2015, for illegal re-entry of a previously deported alien into the United States. Cabrera-Bedolla was arrested in Jackson, Wyoming. He received six months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Reyna Castillo-Hernandez, 38, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 5, 2015, for illegal re-entry of a previously deported alien into the United States. Castillo-Hernandez was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Scranton Woman Arrested by Federal Agents for Unlawfully Acquiring FirearmsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Scranton woman was arrested by federal agents yesterday for making false representations in connection with the acquisition of firearms.
According to United States Attorney Peter Smith, a federal grand jury sitting in Scranton indicted Kimberly Royce, age 49, in October 2014 on two counts of making false statements to a federally licensed firearms dealer in Luzerne County to acquire firearms. The two-count indictment alleges that Royce obtained a 9mm pistol on January 30, 2013, and a .45 caliber pistol on March 29, 2013, and that she falsely represented that she was not purchasing them for another person and was not an unlawful user of a controlled substance. Royce surrendered to federal agents this morning.
The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Wilkes-Barre Police, and Kingston Police.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment on each count, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Savannah Residents Charged with Conspiring to Engage in Sex Trafficking ChildrenRead the Press Release
Savannah, GA: Jeremy Emmanuel Grant and Desalshia Adrien Williams, both 26 and from Savannah,were indicted by a federal grand jury today for their roles in an alleged conspiracy to engage in the sex trafficking of minors. The indictment alleges that from at least June 2014 to January 2015, Grant and Williams conspired to recruit, harbor, and transport minors to work as prostitutes in Savannah and elsewhere.
Grant and Williams are charged with one count of conspiracy to engage in sex trafficking of children. If convicted, Grant and Williams face a maximum possible sentence of life imprisonment. U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.The indictment of Grant and Williams arises out of an ongoing investigation conducted by the FBI, the Pooler Police Department, and Savannah-Chatham Metropolitan Police Department (SCMPD). Anyone who suspects instances of child sexual exploitation is encouraged to call 1-800-843-5678, which is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.
Assistant United States Attorney Tania D. Groover is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Ross Ulbricht, the Creator and Owner of the “Silk Road” Website, Found Guilty in Manhattan Federal Court on All CountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ROSS WILLIAM ULBRICHT, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” a/k/a “Silk Road,” was found guilty yesterday on all seven counts in connection with his operation and ownership of Silk Road, a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement, following a four-week trial before U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury has found, Ross William Ulbricht operated Silk Road – a clandestine global marketplace that offered buyers and sellers of illegal goods and services a promise of anonymity. Ulbricht built this black market bazaar to exploit the dark web and the digital currency Bitcoin to allow users to conduct illegal business beyond the reach of law enforcement. Ulbricht’s arrest and conviction – and our seizure of millions of dollars of Silk Road Bitcoins – should send a clear message to anyone else attempting to operate an online criminal enterprise. The supposed anonymity of the dark web is not a protective shield from arrest and prosecution.”
According to the Complaint, the Superseding Indictment, and the evidence presented at trial:
ULBRICHT created Silk Road in approximately January 2011, and owned and operated the underground website until it was shut down by law enforcement authorities in October 2013. Silk Road emerged as the most sophisticated and extensive criminal marketplace on the Internet, serving as a sprawling black-market bazaar where unlawful goods and services, including illegal drugs of virtually all varieties, were bought and sold regularly by the site’s users. While in operation, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other unlawful goods and services to well over a hundred thousand buyers, and to launder hundreds of millions of dollars deriving from these unlawful transactions.
ULBRICHT deliberately operated Silk Road as an online criminal marketplace intended to enable its users to buy and sell drugs and other illegal goods and services anonymously and outside the reach of law enforcement. ULBRICHT sought to anonymize transactions on Silk Road in two principal ways. First, ULBRICHT operated Silk Road on what is known as “The Onion Router,” or “Tor” network, a special network of computers on the Internet, distributed around the world, designed to conceal the true IP addresses of the computers on the network and thereby the identities of the networks’ users. Second, ULBRICHT designed Silk Road to include a Bitcoin-based payment system that served to facilitate the illegal commerce conducted on the site, including by concealing the identities and locations of the users transmitting and receiving funds through the site.
The vast majority of items for sale on Silk Road were illegal drugs, which were openly advertised as such on the site. As of September 23, 2013, Silk Road had nearly 13,000 listings for controlled substances, listed under such categories as “Cannabis,” “Dissociatives,” “Ecstasy,” “Intoxicants,” “Opioids,” “Precursors,” “Prescription,” “Psychedelics,” and “Stimulants.” From November 2011 to September 2013, law enforcement agents made more than 60 individual undercover purchases of controlled substances from Silk Road vendors. These purchases included heroin, cocaine, ecstasy, and LSD, among other illegal drugs, and were filled by vendors believed to be located in more than ten different countries, including the United States, Germany, the Netherlands, Canada, the United Kingdom, Spain, Ireland, Italy, Austria and France.
In addition to illegal narcotics, other illicit goods and services were openly bought and sold on Silk Road as well. For example, as of September 23, 2013, there were: 159 listings under the category “Services,” most of which offered computer hacking services, such as a listing by a vendor offering to hack into social networking accounts of the customer’s choosing; 801 listings under the category “Digital goods,” including malicious software, hacked accounts at various online services, and pirated media content; and 169 listings under the category “Forgeries,” including offers to produce fake driver’s licenses, passports, Social Security cards, utility bills, credit card statements, car insurance records, and other forms of false identification documents.
Using the online moniker “Dread Pirate Roberts,” or “DPR,” ULBRICHT controlled and oversaw every aspect of Silk Road, and managed a staff of paid, online administrators and computer programmers who assisted with the day-to-day operation of the site. Through his ownership and operation of Silk Road, ULBRICHT reaped commissions worth over $13 million generated from the illicit sales conducted through the site. ULBRICHT also demonstrated a willingness to use violence to protect his criminal enterprise and the anonymity of its users. ULBRICHT even solicited six murders-for-hire in connection with operating the site, although there is no evidence that these murders were actually carried out.
ULBRICHT, 30, of San Francisco, California, was found guilty of: one count of distributing narcotics, one count of distributing narcotics by means of the Internet, and one count of conspiring to distribute narcotics, each of which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years; one count of engaging in a continuing criminal enterprise, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 20 years in prison; one of count of conspiring to commit computer hacking, which carries a maximum sentence of five years in prison; one count of conspiring to traffic in false identity documents, which carries a maximum sentence of 15 years; and one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum sentences are prescribed by Congress and are provided for informational purposes only, as the sentence will be determined by the judge. ULBRICHT is scheduled to be sentenced on May 15, 2015.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation and its New York Special Operations and Cyber Division, as well as the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the IRS, the New York City Police Department, U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), the New York State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Marshals Service, Office of Foreign Assets Control, and NY Department of Taxation. Mr. Bharara also thanked the ICE-HSI Chicago-O’Hare office for its assistance and support, as well as the Department of Justice’s Computer Crime and Intellectual Property Section and Office of International Affairs. Additionally, Mr. Bharara praised the foreign law enforcement partners whose contributions to the success of the investigation and prosecution have been invaluable, namely, the Reykjavik Metropolitan Police of the Republic of Iceland, and the French Republic’s Central Office for the Fight Against Crime Linked to Information Technology and Communication.
Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Serrin Turner and Timothy Howard are in charge of the prosecution, and Assistant United States Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
Roseville Couple Plead Guilty to Loan Modification and Foreclosure Rescue Scam That Targeted Spanish-Speaking CommunityRead the Press Release
SACRAMENTO, Calif. —Martin Wayne Flanders, 50, formerly of Roseville, and Ligia Sandoval Spafford, 48, of Roseville, pleaded guilty today to mail fraud for their participation in a fraud scheme that targeted distressed homeowners, United States Attorney Benjamin B. Wagner announced.
According to court documents, between 2008 and 2010, Flanders charged clients advance fees in exchange for a number of financial services, including loan modifications, mortgage loan audits, credit repair, debt relief, bankruptcy filings, and a program to sell homes to “investors” with a rent-to-own option. Flanders and Sandoval marketed these services to economically distressed homeowners with particular emphasis on those who were Spanish-speakers. During a radio program aired twice weekly by a Bay Area Spanish-language Christian radio station, Radio Luz, Sandoval promoted the services she and Flanders offered. Flanders also advertised on a Spanish-language television station, Univision, and in Spanish-language magazines. About 98 percent of the defendants’ clients were of Hispanic descent, some of whom spoke little to no English. Sandoval speaks Spanish; Flanders does not.
Flanders and Sandoval made numerous false statements to investors as to the success of the programs being offered or refunds that would be available if the programs were not successful. “Ghost offers” – i.e., fictitious offers to purchase the victim’s property through short sale – and “skeleton bankruptcies” – i.e., sham bankruptcy petitions that were quickly dismissed by the bankruptcy court – were also used by Flanders or Sandoval to try to stall the foreclosure process. At least 25 to 30 individuals paid for services and did not receive them or did not receive refunds when the programs failed to deliver as promised. The total loss to the victims is at least $120,000. Some homeowners who were not able to obtain relief were foreclosed upon by their lenders.
“Flanders and Sandoval took advantage of victims with limited English proficiency, when those victims were most financially vulnerable,” said United States Attorney Wagner. “Predatory fraud schemes of this sort have been, and will continue to be, a prime focus of our efforts to prosecute mortgage fraud.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
Flanders has been detained since his arrest in October 2012. Sandoval is currently out of custody.
Flanders and Sandoval are scheduled to be sentenced by United States District Judge Troy L. Nunley on June 11, 2015. Flanders and Sandoval face a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rodney M. Kidd Charged with Military Housing Allowance FraudRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Rodney M. Kidd, age 29, stationed on board Andersen Air Force Base, Guam, has been indicted by a federal grand jury on February 4, 2015, with two counts of theft of government money (18 U.S.C. § 641), one count of fraudulent claim against the United States (18 U.S.C. § 287), and one count of false statement to a federal government agency (18 U.S.C. § 1001). For each count of theft of government money, the maximum sentence under the statute is 10 years in prison and a $250,000 fine. For each count of fraudulent claim against the United States and each count of false statement to a federal government agency, the maximum sentence under the statute is 5 years in prison and a $250,000 fine. A summons was issued for Kidd to appear in federal court on February 18, 2015, for his arraignment.
The indictment alleges that from October 1, 2012 through April 30, 2013, Kidd, an active duty Staff Sergeant in the U.S. Air Force, knowingly stole about $19,645.15 in Overseas Housing Allowance funds from the Defense Finance and Accounting Service (DFAS), a Department of Defense agency that pays military service members.
Military members who are active duty or activated reservists or activated National Guardsmen are eligible to receive a tax-free housing allowance known as Overseas Housing Allowance (OHA). The amount of OHA compensation that an active duty military member can receive is determined by the actual amount of money the individual is paying for housing costs, up to a maximum amount determined by the individual’s rank and whether or not the individual has dependents. If a military member is sharing his residence with another military member, then the amount of OHA distributed to that person would be cut in half.
According to the indictment, from October 1, 2012 through April 30, 2013, Kidd secretly shared his residence with another Air Force Staff Sergeant. According to forms he signed and briefs he heard, Kidd knew that he was only entitled to be reimbursed for $1,100 of his $2,200 monthly rent, yet he kept the additional amounts. Kidd received tax-free reimbursement for his fraudulent rental payments as well as tax-free reimbursements for utility expenses, which totaled approximately $19,645.15.
The indictment further alleges that on May 13, 2013, Kidd knowingly submitted false OHA documentation to DFAS that falsely claimed that Kidd and another active duty Air Force Staff Sergeant paid a total of $4,400 in rent every month for their occupancy of their residence in Dededo. Relying on the OHA documentation Kidd submitted, DFAS paid tax-free OHA reimbursement for the $2,200 he supposedly paid for his share of the rent every month. In reality, Kidd and the other Staff Sergeant had a secret arrangement with their landlord to pay a significantly reduced amount of rent each month so that they could each pocket the remaining OHA payments.
The indictment further alleges that from May 1, 2013 through May 31, 2014, Kidd received tax-free reimbursement for his fraudulent rental payments as well as tax-free reimbursements for utility expenses, which totaled approximately $35,136.60. To corroborate this OHA claim, Kidd presented a false lease agreement to DFAS that falsely stated that Kidd paid $2,200.00 every month in rent for his occupancy of this Dededo residence. The total amount of OHA payments Kidd fraudulently received was $54,781.75.
This case is the result of an investigation conducted by the Air Force Office of Special Investigations. The prosecution is being handled by Special Assistant U.S. Attorney Kurt Grunawalt.
The charges in the Indictment are only allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rockford Man Pleads Guilty to Fraud Involving More Than $500,000 in Fictitious Money OrdersRead the Press Release
ROCKFORD — A Rockford, Ill. man pleaded guilty today before U.S. District Judge Frederick J. Kapala for producing a fictitious financial instrument that appeared to be issued under the authority of the U.S. Treasury. In pleading guilty, BRADLEY SHERMAN HAMPTON, 55, admitted that on Aug. 31, 2009, he created a fictitious $48,780 money order in an attempt to defraud Regions Bank and the U.S. Treasury.
According to the written plea agreement, Hampton also admitted that in 2009 he produced eight other fictitious money orders in an attempt to defraud. The nine fictitious money orders totaled $547,578.47 and purported to be issued under the authority of a Federal Reserve Bank, the Department of the Treasury, or the United States Treasury. The fictitious money orders were made payable to Chase Home Finance, Chase National Payment Service, Holcomb State Bank, Regency Worldwide Development, Inc., Harley Davidson Credit, and the Faith Center in Rockford, Ill.
Producing a fictitious financial instrument carries a penalty of up to 25 years in prison, up to 5 years of supervised release following imprisonment, and a maximum fine of either $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution. Sentencing for Hampton is set for June 1, 2015, at 9:00 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Frank Benedetto, Special Agent-in-Charge of the Secret Service’s Chicago Field Office.
The government is being represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Richmond Man Sentenced in Multi-Year Multi-State Bank Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Reginald L. Thomas, 39, of Richmond was sentenced today by Chief United States District Judge Morrison C. England, Jr. to 45 months in prison for Conspiracy to Commit Bank Fraud and Aggravated Identity Theft, United States Attorney Benjamin B. Wagner announced.
According to evidence presented at a December trial, from March 2008 until July 2010, Thomas and co-conspirator Deshawn Ray conducted what was described as a multi-state “account takeover” scheme that targeted high-value accounts at several banks. Members of the conspiracy used the personal information of high-value account holders to open a joint account in the names of the high-value account holders and a co-conspirator. The defendants also changed the contact information for the high-value accounts so that the actual account holders would not receive notice of account activity. The defendants then transferred funds from the high-value accounts to the joint accounts and then to individual accounts held by a member of the conspiracy. Members of the conspiracy withdrew the proceeds of the fraudulent transfers in cash, cashiers’ checks or wire transfers before the transfers were noticed by the banks and reversed.
This case was the product of an investigation by the United States Secret Service, the Pinellas County (Florida) Sheriff’s Office, and the Walnut Creek (California) Police Department. Assistant United States Attorneys Matthew G. Morris and Brian A. Fogerty are prosecuting the case.
Co-defendant Damian Edgerson, 39, of Oakland, previously pled guilty to bank fraud. He was sentenced to serve 18 months in prison. Co-defendant Tiffany Tung, 26, of Oakland pled guilty to Accepting a Bribe as a Bank Employee. Tung is scheduled to be sentenced in May 2015. She faces a maximum statutory penalty of 1 year in prison and a $100,000 fine. Co-defendant Deshawn Ray is scheduled to appear before Chief Judge England on February 12, 2015 for a hearing on the schedule for sentencing. Ray faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine for his bank fraud convictions, and a mandatory 2 year consecutive prison term for his conviction for Aggravated Identity Theft. The actual sentences for both Tung and Ray will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rhea County Woman Sentenced to Eleven Years and Six Months for Manufacturing Methamphetimine in Home with Five ChildrenRead the Press Release
Misty Angel has two prior state felony convictions for the same conduct
CHATTANOOGA, Tenn. - Misty Angel, 36, of Dayton, Tenn., was sentenced to serve 138 months in prison by the Honorable Curtis L. Collier, U.S. District Judge. Angel pleaded guilty in April 2014 to a federal indictment charging her with manufacturing methamphetamine.
According to the information on file with the U.S. District Court, in October 2013, after receiving complaints of methamphetamine activity, officers from the Rhea County Sheriff’s Department responded to Angel’s residence and caught her in the process of making methamphetamine using the “one-pot” method. The “one-pot” methamphetamine manufacturing process is inherently dangerous, involving several toxic, flammable, and explosive chemicals. She was high on methamphetamine at the time and heating a “one-pot” methamphetamine laboratory with a hair dryer, creating further danger. Chemicals and equipment used in the manufacturing process were found inside and outside the residence and officers encountered a strong chemical odor when they approached the trailer. Five children, ages 17, 14, 13, 12, and 4 years old, were present and were taken to the Rhea County Medical Center for decontamination. Tennessee Department of Children’s Services removed the children from the home.
Angel was classified as a “career offender” under federal law because she had two prior drug felony convictions, both involving methamphetamine and both involving her prior manufacture of the drug in the presence of her children. Her federal sentence reflected her prior state convictions and the substantial risk of harm that her conduct posed to her children. Judge Collier also recommended that Angel participate in a drug treatment program while she is in prison.
The indictment and subsequent conviction of Angel was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms, Rhea County Sheriff’s Department, Tennessee Methamphetamine and Pharmaceutical Task Force, and Tennessee Department of Children’s Services. Assistant U.S. Attorney Gregg L. Sullivan represented the United States
Retired Army Veteran Charged with Threatening to Shoot Others at the Washington D.C. Capitol BuildingRead the Press Release
Greenbelt, Maryland – Michael Bogoslavski, age 33, of Cheverly, Maryland, was charged by complaint with transmitting in interstate commerce a communication containing a threat to injure another person. The complaint was filed on February 3, 2015, and unsealed yesterday. A detention hearing was held late yesterday afternoon and Bogoslavski was ordered to be detained pending trial.
The complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief Kim Dine of the U.S. Capitol Police; Chief H. Buddy Robshaw of the Cheverly Police Department; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“Local and federal law enforcement agencies responded to the threat quickly and effectively,” said U.S. Attorney Rod J. Rosenstein. “Their efforts in this case may have prevented a tragic outcome.”
“With the help of the Threats of Mass Violence state law passed last year, my office was able to work with Cheverly Police to detain Mr. Bogoslavski and obtain a warrant which led to the removal of firearms from his home,” said Prince George’s County State’s Attorney Angela D. Alsobrooks. “I want to thank all of our law enforcement partners for their quick actions that removed Mr. Bogoslavski from our community and may have prevented a tragedy.”
According to the affidavit supporting the complaint, on February 2, 2015, a federal employee who worked in the U.S. Capitol Building reported to U.S. Capitol Police that earlier in the day, the employee had received text messages from Bogoslavski stating that he was planning to come to the employee’s work place with guns and shoot the employee and others. While the employee was speaking with the Capitol Police, Bogoslavski called the employee’s cell phone and made additional threats to shoot others, and “to die suicide by cop.”
The affidavit alleges that the Capitol Police alerted law enforcement to locate Bogoslavski. The Cheverly Police Department responded to Bogoslavski’s residence where they took him into custody. Bogoslavski was taken to a hospital and released the next day, whereupon he was arrested and detained in federal custody.
A search warrant was executed on February 2 at Bogoslavski’s home. Two loaded handguns were seized, along with additional rounds of ammunition. Further investigation revealed that after serving in the U.S. Army for over nine years, including two tours in Iraq and a tour in Afghanistan, Bogoslavski was released from duty. He retired in March, 2013.
Bogoslavski faces a maximum sentence of five years in prison followed by three years of supervised release and a $250,000 fine.
A complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the U.S. Capitol Police, Cheverly Police Department, FBI, Prince George’s County State’s Attorney’s Office and Prince George’s County Police Department for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Daniel C. Gardner and Special Assistant United States Attorney Nicholas J. Patterson, of the U.S. Department of Justice, National Security Division, who are prosecuting the case.
Rapid City Woman Pleads Not Guilty to Money Order FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, woman has been indicted by a federal grand jury for Money Order Fraud.
Eden Tawiah, a/k/a Eden Rosales, a/k/a Eden Holt, age 31, was indicted on January 21, 2015. She appeared before U.S. Magistrate Judge Veronica L. Duffy on January 29, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Tawiah knowingly passing fraudulent money orders in the District of South Dakota in September of 2014.
The charge is merely an accusation and Tawiah is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Postal Inspection Service. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Tawiah was released on bond pending trial. A trial date has been set for April 7, 2015.
Pine Ridge Man Indicted for Assault with Intent to Commit MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Assault with Intent to Commit Murder, Use of a Firearm during a Crime of Violence, and Assault with a Dangerous Weapon.
Jourdan Brown, age 18, was indicted on January 21, 2015. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 23, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 2 years of supervised release, and $100 to the Federal Crime Victims Fund for each charge. Restitution may also be ordered.
The charges relate to Brown using a baseball bat to assault another man on January 14, 2015, at Pine Ridge, and shooting through the front window of the victim’s house later that same day.
The charges are merely accusations and Brown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Brown was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for March 31, 2015.
Northwest Arkansas Man Sentenced to over Nine Years for Drug Trafficking OffenseRead the Press Release
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Joe Chantharath, aka “Joe Psycho”, aka “Psycho”, age 32, of Springdale, Arkansas, was sentenced today on one count of Distribution of Methamphetamine. Chatharath was sentenced to 116 months in prison followed by three years of supervised release. The Honorable Timothy L. Brooks presided over the sentencing in the United States District Court in Fayetteville.
U.S. Attorney Eldridge commented, “We will not waver in our commitment to prosecuting individuals involved in the trafficking of illegal drugs in Northwest Arkansas and across the Western District. With the continued cooperation of local, state, and federal law enforcement, we will work to ensure those who choose to participate in this type of illegal activity are held accountable so that Arkansans can be confident that our communities are safe.”
On five occasions in May 2014, as part of an ongoing investigation, agents with the Drug Enforcement Administration (DEA) Task Force arranged for controlled purchases of methamphetamine from Chantharath. The collective weight of methamphetamine of purchased on these five occasions was approximately 85 grams. On May 23, 2014, agents of the DEA, Rogers Police Department and Springdale Police Department served a search warrant on the defendant’s residence. During the service of the search warrant, the defendant was arrested and found to be in possession of approximately 12 grams of methamphetamine, over $2,500 in cash attributable to the sales of controlled substances, and five firearms. Chantharath was indicted for this conduct on June 25, 2014, and pleaded guilty to one count of Distribution of Methamphetamine on October 17, 2014.
This case was investigated by the Drug Enforcement Administration, the Rogers Police Department and the Springdale Police Department. Assistant United States Attorney Brandon Carter prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Nixa Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Michael Wunderlee, 41, of Nixa, was sentenced by U.S. District Judge M. Douglas Harpool to 11 years and nine months in federal prison without parole. The court also sentenced Wunderlee to 10 years of supervised release following incarceration.
Wunderlee, who pleaded guilty on Sept. 8, 2014, admitted that he received and distributed child pornography over the Internet between May 13, 2010, and Feb. 25, 2012.
Federal agents from the National Park Service and the FBI executed a search warrant at Wunderlee’s residence as part of an investigation into another person’s use of a stolen government credit card number of a National Park Service employee. Wunderlee’s computer was seized and transported for forensic examination, which found approximately 139 videos and approximately 23 images of child pornography, including pre-pubescent victims.
Wunderlee admitted that he used file-sharing software to download the images and videos. The software automatically saved the downloaded images and videos to a share folder on his computer and made them available to be downloaded by others using the program.
Wunderlee was arrested on Sept. 30, 2013, and released on bond on Nov. 22, 2013, which included home detention and location monitoring. However, on or about Feb. 28, 2014, in order to avoid prosecution, Wunderlee absconded after cashing out his retirement account at Cox Hospital and leaving a note indicating he intended to commit suicide. On Aug. 6, 2014, FBI agents arrested Wunderlee at a home in Spotsylvania, Va.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI and the National Park Service.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Nine Arrested During Online Solicitation Investigation Face Federal ChargesRead the Press Release
AMARILLO, Texas — Nine men who were arrested this past weekend during a multi-agency investigation into online solicitation now face federal charges, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Each of the following defendants has been charged in a separate federal complaint, just unsealed, with attempted enticement of a child. Each made his initial appearance in federal court yesterday before U.S. Magistrate Judge Clinton E. Averitte.
Aaron Joe Davis, 38
Jeffery Robert Abraham, 31
Kolby Shelb Kemp, 21
Mario Simental, 27
Brad Eugene Sharber, 44
Daniel Lee Garcia, 37
Robert James Tidwell, 20
Charles Alexander Diaz, 20
Kyle Andrew Adair, 22
All are residents of Amarillo, Texas, with the exception of defendant Tidwell, who is a Pampa, Texas, resident.
According to the complaints filed, at some time during the period January 29, 2015, and Jan 31, 2015, the defendants communicated via email and/or text messaging with an individual they believed to be 14 years-of-age. In all but one case, the defendant believed the 14-year-old was female. In at least one incident, the defendant sent a sexually explicit photograph to the individual they believed to be 14-years-old. In all instances, a meeting time and place was arranged, and in all but two instances, the defendant was arrested at the location. Defendant Davis was arrested after fleeing and leading officers and agents on a vehicle pursuit through Amarillo. Defendant Garcia was arrested after leading officers and agents on a brief foot chase.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The statutory penalty for the offense as charged is not less than 10 years and up to life in federal prison, a $250,000 fine and up to a lifetime of supervised release. The government has 30 days to present the case to a federal grand jury for indictment.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Texas Department of Public Safety, the Amarillo Police Department, Randall County Sheriff’s Department, Potter County Sheriff’s Department, West Texas A&M Police Department, Canyon Police Department, the Amarillo and Randall County District Attorney’s Offices, and the U.S. Marshals Service are investigating. Assistant U.S. Attorneys Joshua Frausto and Tim Hammer are in charge of the prosecution.
Nigerian Woman Arrested; Charged with Improper Use of A PassportRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul. Jr. announced today that Elizabeth Afola Oyenekan, 42, of Nigeria, was arrested and charged by criminal complaint with the improper use of another’s passport and making false statements. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaint, the defendant attempted to enter the United States at the Peace Bridge Port of Entry on February 1, 2015. Oyenekan presented a Canadian passport to a Customs and Border Protection Officer bearing the name Diana Adetuni. When asked where she was born, Oyenekan stated Nigeria but quickly retracted and claimed she was born in Saint Vincent. The defendant also told the officer she was traveling to Brooklyn, NY to stay with a friend.
A search of the defendant’s luggage revealed a credit card in the name of E. O. Oyenekan which was a possible match to a previous Visa Waiver Refusal in Ireland in October 2014. An officer then entered the defendant’s fingerprints into a Fingerprint Identification System and determined that she was in fact Elizabeth Afola Oyenekan and not Diana Adetuni.
The defendant made an initial appearance this morning before U.S. Magistriate Judge H. Kenneth Schroeder. Oyenekan is being held.
The arrest and criminal complaint are the culmination of an investigation on the part of Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.
New Haven Man Pleads Guilty to Possessing Stolen FirearmRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PAUL BURRUS, 44, of New Haven, waived his right to indictment and pleaded guilty yesterday in New Haven federal court to one count of possession of a stolen firearm.
According to court documents and statements made in court, on September 5, 2014, a New Haven Police officer stopped a car in which BURRUS was a passenger in the area of West Ivy Street. As the officer approached the car, he observed BURRUS appear to be hiding or moving something under the front passenger seat. After the officer ordered BURRUS out of the car, he found a loaded Smith and Wesson M & P .45 caliber semi-automatic pistol under the passenger seat.
The firearm had been reported stolen in East Haven in August 2011. BURRUS has admitted that that he purchased the firearm and ammunition for $500, and that he had reason to believe that the firearm had been stolen.
BURRUS is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on May 12, 2015, at which time he faces a maximum term of imprisonment of 10 years.
The matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department and is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Jennifer Laraia.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Monroe County Man Sentenced to Six Years in Prison for Crack Cocaine TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 35-year-old Stroudsburg area man was sentenced to six years in prison by United States District Court Judge Robert D. Mariani for distributing crack cocaine in the Monroe County area in 2013.
According to United States Attorney Peter Smith, the defendant, Jose Hernandez-Tirado, previously pleaded guilty to distribution and possession with intent to distribute crack cocaine.
Hernandez-Tirado was charged in an Information filed in August 2014. The charge against Hernandez-Tirado resulted from an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Pennsylvania State Police, and Berks County Detectives.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
# # #
Mobile Woman Sentenced to 24 Months in Prison for Possessing A Firearm as A Convicted FelonRead the Press Release
Kenyen R. Brown, United States Attorney for the Southern District of Alabama announced that Molly Perez, age 39, a resident of Mobile, Alabama, was sentenced on February 5, 2015, by United States District Judge Kristi K. Dubose to 24 months imprisonment pursuant to her guilty plea to possessing a firearm after having been convicted of a felony (burglary, third degree). At sentencing, Judge DuBose found that Perez possessed the loaded firearm, which was recovered from her apartment, in connection with the possession and sale of controlled substances, including synthetic marijuana – commonly referred to as "Spice".
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile County Sheriff’s Office, and prosecuted by Donna B. Dobbins of the United States Attorney=s Office for the Southern District of Alabama.
Mission Woman Charged with Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Child Abuse.
Stephanie Luxon, age 23, was indicted by a federal grand jury on January 14, 2015. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 29, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in August 2014, in Todd County, Luxon abused, exposed, tortured, tormented, and cruelly punished a child under the age of seven years old.
The charge is merely an accusation and Luxon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services, the Federal Bureau of Investigation, and the Nebraska State Patrol. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Luxon was released on bond pending trial. Trial has been set for April 7, 2015.
Minnesota-Based ev3 to Pay United States $1.25 Million to Settle False Claims Act AllegationsRead the Press Release
Medical device manufacturer ev3 Inc., formerly known as Fox Hollow Technologies Inc., has agreed to pay the United States $1.25 million to resolve allegations under the False Claims Act that Fox Hollow caused certain hospitals to submit false claims to Medicare for unnecessary inpatient admissions related to minimally-invasive atherectomy procedures, the Justice Department announced today.
“Today’s settlement demonstrates our commitment to ensure that the Medicare Trust Fund is used to pay for only necessary medical care,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “Charging the government for higher-cost inpatient services that patients do not need wastes the country’s precious health care resources.”
“It should come as no surprise to anyone that proper health care of a patient includes more than just competence of a provider, it requires accuracy and honesty in billing Medicare for the patient’s treatment,” said U.S. Attorney William J. Hochul Jr. of the Western District of New York. “In this case, a medical device manufacturer allegedly induced hospitals to admit patients as inpatients for minimally-invasive procedures involving its device, even though many of those patients should have been treated as outpatients at significantly less cost. This was done in order to collect higher Medicare reimbursements which ultimately drive up costs for all taxpayers and beneficiaries of government health programs.”
The United States alleged that Fox Hollow, which was acquired by ev3 Inc. in late 2007, knowingly caused 12 hospitals located throughout nine states to submit claims to Medicare for medically unnecessary inpatient stays for certain Medicare beneficiaries undergoing elective atherectomy procedures. Atherectomy is a minimally-invasive surgical procedure that uses a small cutting device to remove atherosclerosis, or hardening of the arteries, from large blood vessels within the body, and it is intended to open up narrowed coronary arteries to increase blood flow and circulation. One such device used in atherectomy procedures is the Silver Hawk Plaque Excision System sold by Fox Hollow. The United States alleged that throughout 2006 and 2007, to increase hospital purchases of the Silver Hawk device, Fox Hollow advised hospitals that they should bill Silver Hawk atherectomy procedures as more expensive inpatient claims, as opposed to less costly outpatient claims. As a result, certain hospitals allegedly claimed greater reimbursement than they were entitled to for treating Medicare beneficiaries who underwent Silver Hawk atherectomy procedures.
“Medical device makers that try to boost their profits by causing patients to be admitted for unnecessary and expensive inpatient hospital stays will be held accountable,” said Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Both patients and taxpayers deserve to have medical decisions made based on what is medically appropriate.”
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. The lawsuit was filed by Amanda Cashi, who formerly worked as a Fox Hollow sales representative. Cashi will receive $250,000.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.5 billion through False Claims Act cases, with more than $15 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with ev3 was the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of New York, the Civil Division’s Commercial Litigation Branch, and HHS-OIG.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
The civil lawsuit is captioned United States ex rel. Cashi v. Fox Hollow Technologies, Inc., et al. Civ. No. 09-CV-01066-S (W.D.N.Y.).
Minneapolis Man Charged with Lying to Federal Agents During Terrorism InvestigationRead the Press Release
Defendant Intercepted in New York City While Attempting to Fly Overseas Possibly to Join Terror Organization
United States Attorney Andrew M. Luger today announced a criminal complaint charging HAMZA AHMED, 19, with lying to agents from the Federal Bureau of Investigation (FBI). AHMED is charged with making a false statement in a terrorism investigation.1 The defendant made an initial appearance on February 5, 2015, before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minn.
“Any person has a right to remain silent, or to consult an attorney when speaking with federal agents or prosecutors,” said U.S. Attorney Luger. “However, this Office will continue to prosecute those who lie to federal law enforcement officers and impede criminal investigations into suspected terrorist activity.”
According to the complaint and documents filed in court, AHMED and three companions, H.M.M, M.F., and Z.A., travelled by bus from Minneapolis, Minn., to New York City’s John F. Kennedy International Airport (JFK). The four men were each booked on international flights scheduled to depart JFK on November 9, 2014. AHMED and M.F. were booked on the same flight from JFK to Istanbul, Turkey. Z.A., M.F., and H.M.M. were each prevented from boarding their flights. AHMED successfully boarded, but was removed from the aircraft before it left the boarding gate.
According to the complaint and documents filed in court, AHMED was subsequently interviewed by FBI agents. He made multiple false statements during the interview, including telling agents that he was traveling alone, and that he did not know M.F. or H.M.M. When AHMED arrived back in Minnesota on November 9, 2014, FBI agents conducted a second voluntary interview, during which AHMED lied to agents.
According to the criminal complaint and documents filed in court, AHMED told FBI agents that he traveled to New York alone and intended to vacation in Madrid for four days by himself. However, the itinerary he booked would have allowed AHMED only one full day in Madrid. Moreover, AHMED did not book a hotel room in Madrid, and he did not know anyone in Madrid. AHMED again denied that he was traveling with M.F.
According to the criminal complaint and documents filed in court, AHMED told agents that he only “vaguely” knew H.A.M., an individual from Minnesota known to have traveled to Syria in 2014. However, a review of AHMED’s publicly available Twitter account shows that a lengthy series of messages between AHMED and H.A.M. took place between November 2013 and March 2014.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
This case is being prosecuted by Assistant U.S. Attorneys Andrew Winter and John Docherty.
Defendant Information: HAMZA AHMED, 19
Minneapolis, Minn.
Charge: • False Statement in a Terrorism Investigation, 1 countHamza Ahmed Complaint
The charges contained in the criminal complaints are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Members of Young Melph Mafia (YMM) Neighborhood Gang Plead Guilty to Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RUBEN GEIGER, a/k/a “Rue,” age 21, and DARIUS WILLIAMS, a/k/a “D-Man,” age 23, both of New Orleans, pled guilty yesterday to federal drug and gun charges.
According to the factual basis, GEIGER and WILLIAMS, along with other members of the Young Melph Mafia gang, pled guilty to participating in a wide-ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participating in several acts of violence against rival gangs. Specifically, GEIGER and WILLIAMS pled guilty to conspiring to possess and possessing with intent to distribute 28 grams or more of cocaine base (crack). They also pled guilty to conspiring to possess firearms in furtherance of drug trafficking crimes from 2008 to August 21, 2014.
For the drug conspiracy, GEIGER and WILLIAMS face a maximum of 40 years of incarceration, followed by a minimum of 4 years of supervised release, and a maximum fine of $5,000,000. For the gun conspiracy, GEIGER and WILLIAMS face a maximum of 20 years of incarceration, followed by up to 3 years of supervised release, and a maximum fine of $250,000. There is also a mandatory $100.00 special assessment for each count associated with this guilty plea. U.S. District Judge Kurt D. Engelhardt set sentencing for April 15, 2015. Four other YMM members – JACOBI BOYD, ALFRED COBBINS, DEONTRE HILLS and SHAWN GRACIN, previously entered guilty pleas and face the same potential sentences described above. Five other defendants – JAWAN FORTIA, JEFFERY WILSON, DEDRICK KEELEN, DELWIN MCLAREN and BRIAN SCOTT – are scheduled for trial on April 20, 2015.
“This is another example of how serious the federal government is in helping turn the tide of violence that is occurring in New Orleans,” stated U.S. Attorney Polite. “These local gangs have caused serious harm to the neighborhoods of this City, and the Department of Justice will continue to work with local authorities to bring these individuals to justice.”
U.S. Attorney Polite praised the work of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT) in investigating this case. Assistant U.S. Attorneys Edward J. Rivera and Maurice E. Landrieu, Jr. are in charge of the prosecution.
Maryland Hunting Guides Sentenced for Violating Maryland Black Bear Hunting RegulationsRead the Press Release
Baltimore, Maryland – On February 4, 2015, U.S. Magistrate Judge Timothy J. Sullivan sentenced Larry Eugene Harding, age 57, of Friendsville, Maryland, and Wallace A. Harward, age 58, of Forest Hill, Maryland, to pay a fine and restitution totaling $8,000 and $5,000, respectively, after the defendants pleaded guilty to violating Maryland black bear hunting regulations. In addition, Magistrate Judge Sullivan sentenced Harding and Harward to five years of probation and ordered each to perform 25 hours of community service for the Maryland Department of Natural resources. During their probation, Harding and Harward are precluded from any guiding activity involving commercial hunting, and are precluded from personally hunting for three years.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police; and Honora Gordon, Regional Special Agent in Charge for the U.S. Fish and Wildlife Service.
“The combined penalties in this case represent one of the most substantial sentences for a Maryland wildlife poaching case in more than two decades,” said Colonel George F. Johnson of the Maryland Natural Resources Police. “Because Maryland is a member of the Interstate Wildlife Violator Compact, Harding and Harward are also barred from hunting or guiding in 44 other states in the U.S. during the term of their suspensions. In addition, Harward’s Maryland waterfowl outfitters license will be immediately revoked and he will be prohibited from renewing during the term of his license suspension,” added Superintendent Johnson.
According to their plea agreements, between 2008 and 2010, Harding who operated Harding’s Wild Mountain Herbs, Inc., and Harward, who operated Timber Creek Services, engaged in commercial hunting activities for American black bear, mostly in Garrett County, Maryland. Hunting for black bear is highly regulated in Maryland. Restrictions included a prohibition on the use of bait to attract the bear, as well as requirements that hunters associated with each other on the same hunting permit remain within view of each other while hunting.
During the course of an undercover investigation by the Maryland Natural Resources Police and the U.S. Fish & Wildlife Service, law enforcement discovered that Harding and Harward were using bait to attract bears to locations where hunters – who had paid Harding and Harward to be guided in their pursuit of the bear – could more easily kill one of the animals. The undercover officers also learned that the defendants were violating the Maryland regulations that required a sub-licensee on a black bear hunting permit to remain in visual contact with the licensee.
During the course of the investigation, undercover officers posed as clients, paying Harding and Harward for guided bear hunts. Their investigation found Harding and Harward were illegally baiting bears for paying clients, some of whom came from outside Maryland to hunt.
During the hunts, Harding and Harward placed apples to bait the black bears, then led the hunters to those locations. For example, on October 25, 2009, Harding directed the undercover officers to the Raven Rock area near Friendsville, showing them where the bears would likely show up the next day. The following day, two hunters--one of them an undercover officer—taking part in a guided hunt led by Harding and Harward each killed a black bear over bait. The undercover officer shot his bear from a spot suggested by Harding, overlooking a pile of illegal bait. Harward also violated the terms of his hunting permit by remaining out of visual contact when the other hunter shot his bear. The bears killed by the hunter and the undercover officer were subsequently taken to a cooler located in the building where Harding conducted his business. Harding took photographs of the bears and the hunters, while Harward was recording the event with a video camera. Inside the cooler where the bear carcasses and skins were placed, the undercover officers saw five plastic 25 gallon garbage cans full of apple skins and cores, consistent with the apple pieces in the bait pile seen by the undercover officers
United States Attorney Rod J. Rosenstein praised the Maryland Natural Resources Police and the U.S. Fish and Wildlife Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.
Man Sentenced in Federal Court on Drug ChargesRead the Press Release
MOBILE, Ala. – Darrick Donnell Belcher, 36, of Marion, was sentenced in federal court for his participation in a conspiracy to possess with intent to distribute cocaine and crack cocaine. Belcher pled guilty to the charge in October of 2014.
United States District Court Judge Callie V. S. Granade imposed a sentence of 57 months imprisonment in Belcher’s case, to be followed by a three-year term of supervised release. She ordered that Belcher undergo drug treatment while incarcerated and during his term of supervised release. No fine was imposed in Belcher’s case, but he was ordered to pay a special mandatory assessment of $100.
The case was investigated by the 4th Judicial Circuit Task Force, the Alabama Attorney General’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney's Office by Assistant United States Attorney Gloria Bedwell.
Long-Time Seattle Area Pimp Sentenced to 10 Years in Prison for Sex Trafficking JuvenileRead the Press Release
A long-time Seattle area pimp was sentenced today in U.S. District Court in Seattle to 10 years in prison and 25 years of supervised release for Sex Trafficking of a Child, announced Acting United States Attorney Annette L. Hayes. DESMOND TREVAIN MANAGO, 26, pleaded guilty in September 2014, admitting that he forced a juvenile female to engage in prostitution in Washington, Idaho, Colorado, Arizona, and California. At sentencing U.S. District Judge Ricardo S. Martinez said, “Sex trafficking of children is seen as one of the worst crimes. . . You are affecting someone’s life forever.”
“Like the countless pimps who came before him, this defendant was manipulative and predatory,” said Acting United States Attorney Annette L. Hayes. “He viewed his victims as commodities that earned him money, and has spent his entire adult life exploiting troubled young women for his financial gain. The prison term and the federal supervision imposed by the court will produce long-term protection against future exploitation of vulnerable victims by this defendant.”
According to records in the case, between October and December 2012, MANAGO used force, fraud and coercion to cause a juvenile female victim to engage in commercial sex acts. MANAGO advertised the juvenile victim on Backpage.com and also forced her to “walk the track” – an area known for prostitution. The juvenile victim was forced to give MANAGO all the money she earned. In November 2012, MANAGO, accompanied by one of his family members, drove the juvenile victim and an adult woman to other states to work as prostitutes. MANAGO posted advertisements of his victims on Backpage.com in the different states and physically assaulted the adult victim. MANAGO left his victims in California and instructed them to wire their prostitution earnings to him in Seattle. Once MANAGO left the juvenile victim in California she broke free from his control.
MANAGO was prosecuted in King County Superior Court in 2009 as a member of the West Side Street Mobb – a gang that forced girls into prostitution to make money. MANAGO was sentenced to 30 months in prison. After he finished his prison sentence, he returned to the King County Jail for various violations. Jail records show that he continued to run his prostitution business while incarcerated, forcing women to pay some of their prostitution earnings to him while he was locked up.
MANAGO was arrested October 3, 2013 during a traffic stop for outstanding warrants. He was transferred to federal custody a year ago.
The case was investigated by the FBI, King County Sheriff’s Office and Tacoma Police Department. The case was prosecuted by Assistant United States Attorneys Kate Crisham and Ye-Ting Woo.
Lake Charles Man, Mexican National Sentenced for Roles in Drug Distribution RingRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Lake Charles man and a Mexican national were sentenced to seven months (time served) and 44 months in prison respectively for transporting and possessing marijuana.
Bertoldo Tolo Labra, 31, of Lake Charles, La., and Juan Antonio Garcia, 58, of Mexico, were sentenced by U.S. District Judge Richard T. Haik on one count of possession with intent to distribute marijuana. Labra was also sentenced to two years of supervised release, and Garcia was sentenced to three years of supervised release. According to evidence presented at the guilty pleas, the defendants admitted to transporting multi-kilograms quantities of marijuana at the direction of co-defendant Rogelio Cantu-Lopez in June and July of 2013 from Houston to a trailer in Moss Bluff, La. The marijuana was then sold to a third party.
The defendants were arrested as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation Cajun Gallo. The DEA, the George West Police Department in Texas, and the Houston Police Department participated in this OCDETF investigation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle targeted criminal organizations and seize their assets.
Assistant U.S. Attorney Howard C. Parker prosecuted the case.
Johnstown Crack Coaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 120 months in prison and three years’ supervised release on his conviction of distribution of cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Reginald Dervin Harris, 48.
According to information presented to the court, on Jan. 9, 2014, Harris distributed less than 28 grams of cocaine base.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Harris.
Johnson City Man Convicted of Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Following a two-day trial in U.S. District Court, on Feb. 4, 2015, Robert Nelson Racanelli, 26, of Johnson City, Tenn., was convicted of conspiracy to distribute, and possess with the intent to distribute, 280 grams or more of crack cocaine. Sentencing is set for 9:00 a.m., June 8, 2014. Racanelli faces a mandatory minimum 10 years in prison up to life. There is no parole in the federal system.
From March 2012, to April 2013, Racanelli conspired with various other persons to distribute, and possess with the intent to distribute, 280 grams or more of crack cocaine. These individuals included several out-of-state drug traffickers from Atlanta, Ga. During this time, Racanelli obtained multi-ounce quantities of crack cocaine from his coconspirators and then sold those drugs throughout Johnson City. On two occasions individuals working on behalf of law enforcement purchased crack cocaine from Racanelli.
As the investigation progressed, agents received court authorization to monitor the phone calls of members of this conspiracy. The resulting wiretaps produced phone calls in which Racanelli was repeatedly heard ordering crack cocaine, arguing about prices and quantities, discussing his drug sales, and joking about the addiction suffered by his customers.
This long term investigation was the product of a partnership between the Johnson City, Tennessee Police Department, First Judicial District Drug Task Force, and Drug Enforcement Administration. Assistant U.S. Attorney Nick Regalia represented the United States.
A total of 21 individuals were charged as part of this investigation. Those previously sentenced include:
Tavares Lashaun Dalton, 36, of Covington, Ga., 240 months; Marcus Lavoya Holliman, 36, of Atlanta, Ga., 210 months; Eullis Monroe Goodwin, 43, of Elizabethton, Tenn., 188 months; Micah Antwan Still, 34, of Covington, Ga., 120 months; Derrick Henry Connor, 40, of Sherills Ford, N.C.,, 120 months; Devin Deonte Blalock, 20, of Jonesboro, Ga., 120 months; Kwanza Tarveze Worthy, 20, of Atlanta, Ga., 120 months; Don Juan Glass, Jr., 22, of Atlanta, Ga.,120 months; Uhamma Castillo Delgado, II, 24, of Johnson City, Tenn.,120 months; Demario Jenard Serchion, 29, of Atlanta, Ga., 77 months; and Cody Alan Sherrill, 22, of Jonesborough, Tenn.,41 months.
All others are awaiting prosecution or sentencing.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Investment Advisor Indicted in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, announce that an indictment was unsealed today charging Michael Szafranski, 36, of Surfside, Florida, with conspiracy to commit wire fraud. The indictment was unsealed in open court in Ft. Lauderdale by U.S. Magistrate Judge Alicia O. Valle. The defendant was ordered released on a $250,000 personal surety bond. If convicted, the defendant faces a maximum sentence of twenty years’ imprisonment and a $250,000 fine on each count.
The indictment, which was returned by a grand jury in Ft. Lauderdale on January 22, 2015, charges that the defendant was a registered investment advisor who, from in or about 2008 through in or about November 2009, conspired to defraud various investors. In 2009, it was discovered that the former law firm of Rothstein, Rosenfeldt & Adler, P.A. (RRA) was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
The indictment charges that Szafranski and Rothstein conspired to induce various persons and entities into investing money in the confidential settlements through material misstatements and material omissions by defendant Szafranski. Those material misstatements and omissions were designed to deceive investors and potential investors as to the legitimacy and authenticity of the parties ostensibly involved in the confidential settlements. The indictment further charges that Szafranski secretly received millions of dollars in compensation from Rothstein and RRA while simultaneously employed by certain investors as a purportedly independent verifier of the legitimacy of the settlement transactions.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
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 Ostby in Billings on February 5, 2015, and entering pleas of Not Guilty were:
- CAMERON CHARLES BACKER, a 26-year-old resident of Lame Deer, appeared on charges of assault on a federal officer. If convicted of the charge contained in the indictment, BACKER faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-128
- JOSEPH SEAN LITTLE, a 31-year-old resident of Lame Deer, appeared on charges of involuntary manslaughter. If convicted of the charge contained in the indictment, LITTLE faces 2 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 15-06
Appearing before U.S. Magistrate Judge Ostby in Billings on February 4, 2015, and entering pleas of Not Guilty were:
- CAMERON SEAN ALLSHOUSE, a 36-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, ALLSHOUSE 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 Billings Police Department. PACER Case Reference: 15-03
- RICHARD JUNIOUS HILL, JR., a 30-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, HILL faces 40 years in prison, $1,000,000 in fines and 4 years supervised release. The case was investigated by the FBI Drug Task Force. PACER Case Reference: 14-72
Appearing before U.S. Magistrate Judge Johnston in Great Falls on February 3, 2015, and entering pleas of Not Guilty were:
- TIMOTHY WARREN ROSETTE, a 51-year-old resident of Box Elder, appeared on charges of bribery of an official of an Indian tribal government receiving federal funding. If convicted of the most serious charges contained in the indictment, ROSETTE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General, Internal Revenue Service, Environmental Protection Agency Office of Inspector General, Federal Bureau of Investigation, and U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference: 14-101
- TIMOTHY WARREN ROSETTE, a 51-year-old resident of Box Elder, appeared on charges of bribery of an official of an Indian tribal government receiving federal funding, false claims act conspiracy, and false and fraudulent claim against federal funded project. If convicted of the most serious charges contained in the indictment, ROSETTE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General, Internal Revenue Service, Environmental Protection Agency Office of Inspector General, Federal Bureau of Investigation, and U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference: 15-03
- TIMOTHY WARREN ROSETTE, a 51-year-old resident of Box Elder, appeared on charges of bribery of an official of an Indian tribal government receiving federal funding and theft from and Indian tribal organization. If convicted of the most serious charge contained in the indictment, ROSETTE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General, Internal Revenue Service, Environmental Protection Agency Office of Inspector General, Federal Bureau of Investigation, and U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference: 15-04
Appearing before U.S. Magistrate Judge Lynch in Missoula on February 3, 2015, and entering pleas of Not Guilty were:
- JOSE SALINAS-CHACON, a 47-year-old resident of Honduras, appeared on charges of illegal reentry. If convicted of the charge contained in the indictment, SALINAS-CHACON faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Homeland Security. PACER Case Reference: 15-12
Appearing before U.S. Magistrate Judge Ostby in Billings on January 30, 2015, and entering pleas of Not Guilty were:
- PRESTON DAVID BELL, a 21-year-old resident of Wyola, appeared on charges of uttering counterfeit obligations. If convicted of the most serious charge contained in the indictment, BELL faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by United States Secret Service. PACER Case Reference: 14-114
- OLAF JAMES HAUGEN, a 29-year-old resident of Lame Deer, appeared on charges of aggravated sexual abuse. If convicted of the charge contained in the indictment, HAUGEN faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. PACER Case Reference: 15-05
- ERIC HARVEY LITTLECALF, a 22-year-old resident of Rabbit Town, appeared on charges of assault resulting in serious bodily injury and felony child abuse. If convicted of the most serious charge contained in the indictment, LITTLECALF faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-130
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.
Houma Man Pleads Guilty to Federal Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DWYANE A. TILLMAN, a/k/a "Dwayne A. Tillman", age 47, of New Orleans, pled guilty yesterday to federal drug charges.
TILLMAN pled guilty to possession with the intent to distribute 500 grams or more of cocaine hydrochloride. According to court documents, law enforcement agents encountered TILLMAN at the Amtrak Station in Schriever, Louisiana. Agents discovered that TILLMAN was carrying a large quantity of cocaine hydrochloride in his duffel bag.
TILLMAN faces a maximum of 40 years’ incarceration, followed by a minimum of 4 years supervised release, and a maximum fine of $5,000,000. There is also a mandatory $100.00 special assessment associated with this guilty plea. U.S. District Judge Sarah S. Vance set sentencing for May 13, 2015.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, Louisiana State Police and the Amtrak Police Department in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Honduran National Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONY RIVERA-GONZALES, age 23, a citizen of Honduras and who most recently resided in Hammond, pled guilty today to a one-count Indictment for illegal use of a Social Security Number.
According to the Indictment, on or about August 20, 2014, RIVERA-GONZALES submitted a social security number that did not belong to him to a Louisiana Department of Motor Vehicles Office in order to obtain a Louisiana identification card. Based on that false submission, an employee with the Department of Motor Vehicles issued RIVERA-GONZALES a Louisiana identification card.
RIVERA-GONZALES faces a maximum term of five years imprisonment, followed by three years of supervised release, a fine of $250,000, and a mandatory special assessment of $100.00. U.S. District Judge Mary Ann Vial Lemmon set sentencing for May 14, 2015.
U.S. Attorney Polite praised the work of the Homeland Security Investigations and the Louisiana State Police in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EDUARD TERCERO-LAGOS, age 25, a citizen of Honduras, pled guilty yesterday to a one-count Indictment for illegal reentry of removed alien.
According to the Indictment, on or about December 8, 2014, TERCERO-LAGOS was found in the United States after having been officially deported and removed on or about June 24, 2013, and on August 5, 2005.
TERCERO-LAGOS faces a maximum term of imprisonment of two years, a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for March 18, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Indicted for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DENYS BENITEZ-FERNANDEZ, age 32, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.
According to the Indictment, BENITEZ-FERNANDEZ was encountered by Immigration & Customs Enforcement agents in the Eastern District of Louisiana on January 22, 2015, after records showed he had been previously deported from the United States to Honduras on April 24, 2013.
If convicted, BENITEZ-FERNANDEZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration & Customs Enforcement in investigating this matter. Assistant U.S. Attorney Emily K. Greenfield is in charge of the prosecution.