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4 February 2015
Texas National Guard Recruiter and Assistant Convicted in Bribery and Fraud SchemeRead the Press Release
HOUSTON – An Army National Guard recruiter and recruiting assistant were convicted today for their roles in a bribery and fraud scheme, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Jammie T. Martin, 37, and Michelle H. Davis, 34, both of Katy, were convicted today of conspiracy, bribery, wire fraud and aggravated identity theft. The defendants were indicted on Aug. 7, 2013, and will be sentenced on May 7, 2015, by U.S. District Judge David Hittner.
From February 2009 through April 2011, Martin served as an Army National Guard recruiter. Davis served as a recruiting assistant with the Guard Recruiting Assistance Program (G-RAP), which was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the National Guard. Both defendants worked out of a Texas National Guard Armory known as the Westheimer Armory.
According to evidence presented at trial, Martin - who, as a recruiter, was ineligible for the G-RAP incentives - provided the personal identifying information of potential soldiers to Davis and at least three other National Guard soldiers. Davis and the others then falsely claimed they were responsible for referring the potential soldiers to join the military and fraudulently received referral bonus payments through the G-RAP program. Davis and the others paid approximately half of each fraudulent bonus payment to Martin as a kickback.
To date, this investigation has led to the conviction of 26 individuals, including Martin and Davis.
This case is being investigated by the San Antonio Fraud Resident Agency of the United States Army Criminal Investigation Command’s Major Procurement Fraud Unit and prosecuted by Assistant U.S. Attorney John P. Pearson and Trial Attorneys Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.
Statement of Manhattan U.S. Attorney Preet Bharara on the Conviction of Ross William UlbrichtRead the Press Release
"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."
Porcupine Woman Sentenced for Drug DistributionRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, woman convicted of Distribution of a Controlled Substance to a Person Under Age Twenty-One was sentenced on January 26, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Ardis Good Shot, age 41, was sentenced to 1 year of probation, 25 hours of community service, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Good Shot providing marijuana to a person under the age of 18 on multiple occasions between October 2011 and January 2012.
This case was investigated by the Federal Bureau of Investigation, 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 prosecuted the case.
Philadelphia Man Pleads Guilty in Two-State Bank Robbery SpreeRead the Press Release
CAMDEN, N.J. - A Philadelphia, Pennsylvania, man admitted robbing five banks in New Jersey and Pennsylvania over four months, U.S. Attorney Paul J. Fishman announced today.
Nathaniel Stroud, 34, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging him with two counts of bank robbery in connection with robbing a Roma Bank in Delran, New Jersey, on Nov. 8, 2013, and robbing a 1st Constitution Bank in Hightstown, New Jersey, on Jan. 9, 2014. Stroud also admitted robbing a PNC Bank and a TD Bank in Philadelphia and a TD Bank in Willingboro, New Jersey.
According to documents filed in the case and statements made in court:
Between September 2013 and January 2014, Stroud robbed the five banks by presenting a demand note to the bank tellers, in which he stated that he had a gun.
The two counts of bank robbery charged in the information are each punishable by a maximum of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for May 14, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Eric Welling, in Newark; the Burlington County Prosecutor’s Office, under the direction of Prosecutor Robert D. Bernardi: and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Joseph L. Bocchini, with the investigation. He also thanked the Delran, Willingboro and Hightstown police departments for their assistance.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney's Office Special Prosecutions Division in Camden.
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Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Palm Bay Man Convicted of Internet Solicitation of MinorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Jean Roussel Eloi (30, Palm Bay) guilty of using the Internet to attempt to persuade a minor to engage in sexual conduct. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for April 17, 2015.
Eloi was indicted on November 5, 2014.
According to testimony presented at trial, on the night of July 20, 2014, Eloi started an online chat session with an 11-year-old female who lived in Palm Bay. The next day, the girl reported the chats to her mother. After the mother contacted law enforcement, an undercover detective began engaging in a series of chats with Eloi, who explicitly detailed the sexual acts he wanted to perform with the “girl.” Eloi eventually asked the “girl” to meet him. When he arrived at the prearranged location, deputies arrested him.
This case was investigated by the Brevard County Sheriff’s Office, with assistance from the Palm Bay Police Department. It is being prosecuted by Assistant United States Attorney Bruce S. Ambrose.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Owner of Hobbs Gun Shop Sentenced to Twelve Months for Federal Firearms ConvictionRead the Press Release
ALBUQUERQUE – The owner of a gun shop in Hobbs, N.M., was sentenced this morning in in federal court in Las Cruces, N.M., twelve months in federal prison followed by three years of supervised release for violating the federal firearms laws, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Carlos Jonathan Cruz, 32, the owner of Hobbs Satellite Company Guns & Ammo, and his parents who assisted their son in operating the gun shop, Carlos Carlon Cruz, 61, and Norma M. Cruz, 57, were indicted in June 2013. The three defendants were charged with violating federal firearms laws by making false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser” and buying firearms on behalf of others. Carlos Jonathan Cruz also was charged with unlawfully selling thousands of rounds of ammunition to an alien illegally in the United States, unlawfully possessing an unregistered sawed-off shotgun, and unlawfully possessing firearms with obliterated serial numbers.
On Jan. 7, 2014, Carlos Jonathan Cruz pled guilty to a felony information charging him with (1) making false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser,” and (2) unlawfully possessing firearms with obliterated serial numbers. In entering his guilty plea, Carlos Jonathan Cruz admitted that on April 23, 2013, he knowingly aided and abetted the making of a false statement by a straw purchaser who bought two firearms at his gun shop for an individual who was working as a confidential informant for the ATF. Cruz also admitted possessing a firearm with an obliterated serial number on May 29, 2013.
Carlos Jonathan Cruz’s parents each pled guilty to a felony information charging them with (1) making false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser,” and (2) unlawfully selling ammunition to a prohibited person. In entering their guilty pleas, Carlos Carlon Cruz and Norma Cruz admitted that on April 9, 2013, they sold 2,500 rounds of ammunition to an alien who was illegally in the United States. They also admitted that on April 23, 2013, they knowingly aided and abetted the making of a false statement by a straw purchaser who bought two firearms at his gun shop for an individual who was working as a confidential informant for the ATF.
Under the terms of his plea agreement, Carlos Carlon Cruz will be sentenced to a prison term not to exceed 41 months of imprisonment and Norma Cruz will be sentenced to a prison term not to exceed 30 months of imprisonment. They also are required, along with Carlos Jonathon Cruz, to forfeit approximately 165 firearms, 25,703 rounds of ammunition and six silencers. Their sentencing hearings have yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the DEA and the Hobbs Police Department, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office. Assistant U.S. Attorney Stephen R. Kotz is handling the related forfeiture proceedings.
One Labor Union Officer and Three Labor Union Members Charged in Manhattan Federal Court with Accepting Bribes in Exchange for Labor Union MembershipsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Cheryl Garcia, the Special Agent-in-Charge of the New York Regional Office of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (“DOL-OIG”), and William J. Bratton, the Police Commissioner of the City of New York (“NYPD”), announced today that a federal grand jury has returned an Indictment charging ADAM FORESTA, CHRISTOPHER LUPINO, JAMES SHEERAN, and KELWYN BENJAMIN with conspiring to commit honest services wire fraud in connection with their accepting bribes in exchange for memberships in Steamfitters Local 638, a New York City labor union. The defendants were arrested in November 2014 on the same charges, pursuant to a criminal Complaint. The case is assigned to United States District Judge William H. Pauley, III, in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants – Adam Foresta, Christopher Lupino, James Sheeran, and Kelwyn Benjamin – disgraced the idea of union membership and disserved the interests of the plumbing and pipefitting industry workers of Steamfitters Local 638 when they concocted a scheme to sell Union memberships for thousands of dollars in cash bribes to fill their personal coffers. This Office remains committed to protecting the integrity of unions from this type of alleged misconduct and ensuring that those who would engage in it face justice.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “For a bribe, the defendants granted membership to the highly sought-after Steamfitters union. Ironically, the defendants’ actions didn’t protect their two key constituents: union members and those with leaky pipes. The FBI continues to police this city’s labor organizations for corruption at all levels.”
NYPD Commissioner William J. Bratton said: “I would like to thank the members of the NYPD’s Joint Organized Crime Task Force and our Federal partners who built this case and made these indictments possible.”
According to allegations contained in the Indictment, the underlying criminal Complaint unsealed on November 5, 2014, and statements made during court proceedings:
FORESTA, LUPINO, SHEERAN, and BENJAMIN were all members of Steamfitters Local 638, a local division of a labor union that represents workers in the plumbing and pipefitting industries in New York City (the “Union”). SHEERAN was an organizer for the Union and worked on membership recruitment. In that capacity, he owed fiduciary duties to Steamfitters Local 638.
In December 2013, an individual who has not been charged (“Applicant-1”) told a cooperating witness (the “CW”) that Applicant-1 had been offered membership in the Union – what is known as a “Union book” – in exchange for a $35,000 bribe. Applicant-1 asked the CW to help him/her pay for the Union book.
Over the next several months, FORESTA, LUPINO, and BENJAMIN each had conversations, which were recorded by the FBI, with the CW about buying Union books for Applicant-1 and another individual who has not been charged (“Applicant-2”). During these calls, the CW was told that each Union book would cost $40,000 – $5,000 for the typical Union application fee and a $35,000 cash bribe.
In October 2014, Applicant-1 met with SHEERAN, who coached Applicant-1 to provide answers to questions from Union officials to enable him to secure approval from the interviewing officials, including by misleading the Union officials. Applicant-1 and Applicant-2 met with the Union committee later that month in connection with their applications. After that meeting, LUPINO told the CW that approvals from the Union would come soon.
On November 3, 2014, a few days before Applicant-1 and Applicant-2’s memberships were to be issued, LUPINO and FORESTA arranged for FORESTA to meet with the CW to pick up the bribes for the two Union books. LUPINO told the CW to bring $70,000 in cash and that the other $10,000, which would go to the Union for application fees, should be paid for by check or money order. On November 4, 2014, FORESTA and the CW met in Manhattan. The CW gave FORESTA $35,000 in cash for one Union book – telling him he would pay for the second Union book the next day. Thereafter, the agents arrested FORESTA; LUPINO, BENJAMIN, and SHEERAN were arrested in the following days.
FORESTA, 45, of Staten Island, New York, LUPINO, 51, of New Monmouth, New Jersey, SHEERAN, 49, of Jackson, New Jersey, and BENJAMIN, 41, of New York, New York, are each charged with one count of conspiring to commit honest services wire fraud, which carries a maximum term of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the New York City Police Department.
The case is being prosecuted by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Joshua A. Naftalis and Jordan Estes are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Adam Foresta, et al Indictment
Northwest Arkansas Man Found Guilty on Four Counts Related to Distribution of MethamphetamineRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Fernando Canales-Mendoza, age 52, a Mexican citizen living in Eureka Springs, Arkansas, was found guilty on two counts of Distribution of Methamphetamine, one count of Possession with Intent to Distribute more than fifty (50) grams of Methamphetamine, and one count of Conspiracy to Distribute Methamphetamine following a two day jury trial in Fort Smith. The Honorable Robert T. Dawson presided over the trial in the United States District Court in Fort Smith.
U.S. Attorney Eldridge commented, “Children in Carroll County and across the Western District of Arkansas deserve to grow up in communities free from illegal drug trafficking and the violence and other crime that comes with it. With the defendant’s conviction today, another positive step forward has been taken for Arkansans. Our office remains devoted to aggressively prosecuting those responsible for bringing methamphetamine and other drugs into our communities.”
According to evidence presented to the jury, on April 30, 2014, as part of an ongoing investigation, an undercover agent with the Drug Enforcement Administration (DEA) purchased one ounce of methamphetamine from the defendant, Canales-Mendoza, in his home in exchange for $1,400.00, and was provided an additional ounce to be paid for at a later time. On May 7, 2014, the undercover agent paid the defendant $1,500.00 for that ounce, and purchased an additional ounce of methamphetamine for $1,400.00. On August 27, 2014, the undercover agent met with the defendant again, and requested an additional four ounces of methamphetamine. The defendant then showed the undercover agent approximately three to three and a half ounces of methamphetamine he did have, which prompted the agent to respond that he would leave in order to get additional funds to purchase the methamphetamine. Once the agent left the meeting with the defendant, DEA agents executed an arrest warrant on Canales-Mendoza and a search warrant on his place of business, where they confiscated approximately 137 grams of methamphetamine.
The defendant faces a sentence of ten years to life in prison, up to a $10,000,000 fine, or both. The sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violations. The sentence will not exceed the statutory maximum for each count in this case, and in most cases will be less than the maximum.
This case was investigated by the Drug Enforcement Administration and the Washington County Sheriff’s Office. Assistant United States Attorneys Brandon Carter and Sydney Butler prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
North Ridgeville Man Faces Child Pornography ChargeRead the Press Release
Sean M. Barnhill, 36, of North Ridgeville, was charged with distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about August 1, 2014, through on or about August 30, 2014, Barnhill knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. It is further alleged that between the dates of September 1, 2013 and January 8, 2015, Barnhill accessed with intent to view images of child pornography on his computer.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Elyria Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Naples Man Indicted for Additional Million Dollar FraudRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the return of a superseding indictment charging Jeffrey Ihm (47, Naples) with 14 counts of wire fraud and 5 counts of aggravated identity theft. Each wire fraud count carries a maximum penalty of 20 years in federal prison. In addition, he faces a maximum penalty of two years’ imprisonment for each aggravated identity theft offense, to be served consecutively to any wire fraud conviction. The indictment also notifies Ihm that the government intends to forfeit $315,000 that has been seized from a Suncoast Credit Union checking account, in addition to a house in Naples that is alleged to be traceable to proceeds of the offenses. The United States is also seeking a money judgment in the amount of $2,297,664.74, representing the alleged proceeds of the fraud scheme.
According to the superseding indictment, Ihm assumed the identities of and posed as executives of a number of companies, including Roper Industries, Inc., Kinetic Technologies, LLC, CSX Corporation, and Convergence Consulting Group, Inc. He then generated false and fraudulent emails and other documents in the names of the companies’ executives in order to defraud Wells Fargo Bank, CIT Group, and Key Bank, causing those financial institutions to transfer to him $2,297,664.74 to which he was not entitled.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service and the Federal Bureau of Investigation, with assistance from the Economic Crimes Unit of the Collier County Sherriff’s Office. It will be prosecuted by Assistant United States Attorneys David G. Lazarus and Dale R. Campion.
Mom Admits Distributing Her Incarcerated Son’s HeroinRead the Press Release
PITTSBURGH – Carrie Robinson of Pittsburgh has pleaded guilty to conspiring to distribute heroin, United States Attorney David J. Hickton announced today.
Robinson, age 45, pled guilty on Feb. 1, 2015, in front of United States District Judge Mark R. Hornak. In support of the guilty plea, Robinson admitted that, in late March and early April 2014, she agreed to distribute her son’s remaining heroin while he was incarcerated at the Allegheny County Jail on a heroin distribution charge. Robinson is scheduled to be sentenced on May 26, 2015, at 9:30 a.m.
The law provides for a maximum total sentence of up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Baldwin Police Department, the Allegheny County Medical Examiner’s Office, and the Allegheny County District Attorney’s Office conducted the investigation leading to the conviction in this case.
Mission Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on February 2, 2015, by U.S. District Judge Roberto A. Lange.
Vernon Robert Schmidt, Jr., a/k/a Sonny Bob Schmidt, age 29, was sentenced to 46 months in custody, 2 years of supervised release, $900 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from a May 26, 2014, incident when, during an argument, Schmidt pointed a Stoeger 9mm caliber pistol at the victim and waved it around. Schmidt was brandishing the firearm when it discharged. A 9mm slug from the Stoeger firearm hit the victim in the chest and neck area, causing serious bodily injury to the victim. Schmidt fled the scene.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Schmidt was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Michael Ronald Garant Charged with Illegally Acquiring Firearms on Behalf of Another PersonRead the Press Release
United States Attorney Andrew M. Luger today announced a criminal complaint charging MICHAEL RONALD GARANT, 42, for acting as a straw purchaser of three firearms for Ray Kmetz. GARANT is charged by complaint with making a false statement to acquire firearms on behalf of another person. GARANT will appear today before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minn.
“Background checks are only as good as the accuracy of the information collected,” said U.S. Attorney Luger. “Honestly answering questions about the intended recipient of a firearm is an important component of responsible gun ownership and key to public safety, which is why it is a crime to act as a straw purchaser. This defendant is charged with committing that very crime – buying guns for another person and lying about it.”
According to the criminal complaint and documents filed in court, on August 21, 2014, Ray Kmetz was the highest bidder for three shotguns in an online auction, which were actually purchased by GARANT on August 23, 2014, at Full Metal Gun Shop in Princeton, Minn. The defendant informed the owner of the gun shop that he used the alias “Ray Kmetz” during the online auction to hide his true identity. GARANT produced a driver’s license to the store owner to verify that he was, in fact, GARANT.
According to the criminal complaint and documents filed in court, a National Instant Criminal Background Check was performed on GARANT, and was returned “clear.” One of the forms completed by GARANT as part of the background check contained the following question: Are you the actual transferee/buyer of the firearm(s) listed on this form? Warning: You are not the actual buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the actual buyer, the dealer cannot transfer the firearm(s) to you.
GARANT responded “yes” to this question by checking the corresponding box. GARANT paid $659.29 in cash for the three shotguns, one of which was a Stoeger Model 2000 12-gauge shotgun bearing serial number 915191.
According to the criminal complaint and documents filed in court, on January 26, 2015, Ray Kmetz entered New Hope City Hall, in New Hope, Minn., during a meeting of the city council. He was armed with the same Stoeger Model 2000 12-gauge shotgun that GARANT had purchased. Kmetz fired one round from the shotgun in the direction of the council chambers. New Hope Police Officers responded with fire and killed Kmetz.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hennepin County Sheriff’s Office.
Assistant U.S. Attorneys Nate Petterson and Benjamin Bejar are prosecuting this case.
Defendant Information: MICHAEL RONALD GARANT, 42
Golden Valley, Minn.
Charges: • Making a false statement to acquire firearms on behalf of another person, 1 countGarant Complaint & Affidavit
The charges contained in the criminal complaints are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Miami-Dade County Resident Arrested in Connection with Jamaica Based Lottery ScamRead the Press Release
A Miami-Dade County resident was arrested and charged in a criminal complaint in connection with a Jamaica based lottery scam.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Rowan George Hemmings, 46, was charged with conspiracy to commit mail fraud and mail fraud for his role in a Jamaica based telemarketing fraud scheme.
According to the criminal complaint, beginning in or about December 2012, Hemmings’ co-conspirators are alleged to have contacted victims in the U.S. and falsely informed them that they had won a lottery. The co-conspirators told victims they had to pay several thousand dollars in order to collect their purported lottery winnings. The co-conspirators then allegedly instructed the victims on how to send this money, and to whom, including to Hemmings. According to the complaint, the victims never received any lottery winnings.
In January 2013, Hemmings was contacted in Miramar, Florida, by law enforcement regarding a package, which was sent through the mail, containing money from a victim of this fraud. At that time and after being confronted with the fact that he was participating in a lottery fraud scheme, Hemmings signed a “Consent Agreement to Cease and Desist” whereby he voluntarily agreed to stop receiving money from victims of telemarketing fraud.
In January 2015, law enforcement identified a package mailed by another victim of this lottery fraud, addressed to Hemmings in Homestead, Florida. According to the complaint, Hemmings made multiple attempts to receive this package thereby continuing his participation in the lottery fraud and violating the terms of his agreement to Cease and Desist with this activity.
Mr. Ferrer commended the investigative efforts of the USPIS, ICE-HSI, U.S. Marshals Service, Broward Sheriff’s Office Narcotics Interdiction Task Force, Miami Dade Police Department Economic Crimes Unit and the Jamaica Constabulary Force. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
In 2008, Homeland Security Investigations (HSI) and the Jamaica Constabulary Force established the Project JOLT (Jamaican Operations Linked to Telemarketing) taskforce in conjunction with the Ministry of Finance’s Financial Investigative Unit, and Jamaica Customs (hereinafter, JOLT taskforce). The JOLT taskforce is focused on identifying, disrupting and dismantling the severe increase in Jamaican based telemarketing fraud operations that prey on U.S. senior citizens. The U.S. Postal Inspection Service and U.S. Marshal Service are domestic partners of the JOLT taskforce.
A criminal complaint is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Pleads Guilty to Distributing Meth After Attempt to Steal from Undercover OfficerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national pleaded guilty in federal court today to distributing methamphetamine and illegally possessing a firearm after he attempted to rob an undercover police detective during a drug buy and led authorities on a high-speed chase.
Luis Alberto Vasquez-Pena, 24, a citizen of Mexico residing in Kansas City, Mo., pleaded guilty before U.S. District Judge Dean Whipple to two counts of distributing methamphetamine and one count of being an illegal alien in possession of a firearm.
By pleading guilty today, Vasquez-Pena admitted that he intended to rob the undercover officer when he agreed to sell five ounces of methamphetamine for $4,500. Vasquez-Pena admitted that he sold the undercover officer methamphetamine on two occasions in June 2014, and agreed to sell five ounces of methamphetamine for $900 per ounce on Aug. 14, 2014.
According to today’s plea agreement, Vasquez-Pena met the undercover officer near the corner of St. John Avenue and Hardesty Avenue in Kansas City; he got into the officer’s vehicle and instructed the officer to drive to a house near East 9th Street and Bales Court in Kansas City. Vasquez-Pena asked the undercover officer for the money; the officer confirmed having the money but wasn’t going to pay without getting the methamphetamine. Vasquez-Pena explained that he would have to walk two or three houses up the street to get the drugs, and that the dealer would not let five ounces of methamphetamine “walk out the door” without getting paid first. The undercover officer gave Vasquez-Pena $4,500. He got out of the vehicle, walked north on Bales Court, got into his Dodge Durango (which was occupied by a woman) and immediately left the area.
Law enforcement officers attempted to stop the Durango, but Vasquez-Pena refused to stop and a high-speed chase ensued that eventually led into Kansas City, Kan. Officers briefly lost sight of the Durango but soon found it abandoned in a business parking lot. A few minutes later, federal agents discovered Vasquez-Pena hiding under a car in a nearby salvage yard. Officers also found the woman passenger in the salvage yard and recovered the $4,500 in pre-recorded buy money. Agents searched the Durango and found a loaded Ruger .45-caliber pistol and another loaded handgun concealed under the driver’s seat.
“I know the game,” Vasquez-Pena told the arresting officers, adding that he “should have shot” the undercover officer after taking the money.
Vasquez-Pena, who admitted that he was born in Mexico and is illegally in the United States, told officers that he could not get the five ounces of methamphetamine and intended to take the money from the undercover officer. Vasquez-Pena also admitted that he had traded an eight-ball of methamphetamine for the Ruger pistol two or three weeks earlier.
Under federal statutes, Vasquez-Pena is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 90 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Kansas City, Mo., Police Department.
Mentor Man Charged with Stealing $86,000 from Social SecurityRead the Press Release
A federal grand jury today returned an indictment in U.S. District Court charging Harley J. Hervey, 63, of Mentor, with theft of public money, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The alleged theft of Social Security funds, occurring between 2007 and 2014, totaled approximately $86,926, according to the indictment.
The United States Social Security Administration Office of the Inspector General conducted the investigation. The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Members of Atlantic City 'Dirty Block' Gang Sentenced for Participating in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - An Atlantic City, New Jersey, man was sentenced today to 84 months in prison for engaging in a conspiracy to distribute heroin with Mykal Derry, a leader of the “Dirty Block” criminal street gang that allegedly used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City.
Raymond Mack, a/k/a “Bread,” 21, of Atlantic City, N.J., previously pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute, and to distribute and to possess with intent to distribute within 1,000 feet of public housing, 100 grams or more of heroin. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this and other cases and statements made in court: Mack was arrested on March 26, 2013. He acted as a heroin dealer on behalf of Mykal Derry, 34, of Atlantic City, helping Dirty Block distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court in Atlantic City.
In addition to the prison term, Judge Irenas sentenced Mack to serve eight years of supervised release.
Mack’s sentencing follows the sentencings last week of two conspirators: Kasan Hayes, 28, was sentenced to 108 months in prison and eight years of supervised release; and Dwayne Townsend, 21, was sentenced to 60 months in prison and eight years of supervised release. Both Hayes and Townsend previously pleaded guilty before Judge Irenas to charges of conspiring to distribute, and to possess with intent to distribute, heroin, within 1,000 feet of a public housing complex.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Eric Welling; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
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Defense counsel: Paul Hetznecker Esq., Philadelphia, P.A.Member of “Traveling Group” of Fraudsters SentencedRead the Press Release
BOISE — Myron Pardon, 26, from Southfield, Michigan, was sentenced yesterday to six month in prison for aggravated identity theft and credit card fraud, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Pardon to serve six months in a half-way-house after his release from prison, followed by six months of home detention and three years of supervised release. During his supervised release, Pardon can have only one credit card in his possession. Pardon pleaded guilty to the charges on November 13, 2014.
Pardon, co-defendant Brandt Stewart and others were part of a “traveling group” from Detroit, Michigan, that traveled to southern Idaho in December, 2013, and February, 2014, to make purchases at large “box stores” using counterfeit credit cards. Pardon knowingly and with intent to defraud used counterfeit credit cards to purchase “general use” charge cards at ten stores in Twin Falls, Boise and Meridian causing losses in the amount of $4,340.15. Some of the credit cards fraudulently used by Pardon belonged to actual account holders, thus constituting aggravated identity theft.
Stewart has entered a plea of guilty to similar charges and will be sentenced on April 28, 2015. A second co-defendant, Matthew Lane, will be transferred to the United States District Court for the Eastern District of Michigan, in Detroit, where Lane will plead guilty. No hearing date has been set in Detroit.
“Vigorous prosecution of those who travel here to carry out schemes to defraud Idaho citizens and businesses is a priority of this United States Attorney’s Office,” said Olson. “My office will work effectively and aggressively with local police departments and federal law enforcement agencies to put a quick end to these schemes.”
The case is the result of a joint investigation result of the Boise Police Department, United States Secret Service, and U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Massachusetts Tax Return Preparer and Business Owner Pleads Guilty to Tax FraudRead the Press Release
A tax return preparer in Worcester and Hyde Park, Massachusetts, pleaded guilty today in the U.S. District Court for the District of Massachusetts to two counts of filing false claims with the Internal Revenue Service (IRS), the Department of Justice announced today.
Yaw Aboagye-Marfo, 42, of Worcester and Hyde Park, Massachusetts, was charged in a superseding indictment in August 2014 with filing false tax returns that claimed refunds to which clients were not entitled. According to the indictment, Aboagye-Marfo also filed false tax returns on his own behalf that claimed refunds from the IRS to which he was not entitled.
According to the indictment, Aboagye-Marfo owned and operated People’s Choice Tax Service and National Taxpert, located in Worcester and Hyde Park, respectively. Aboagye-Marfo used other individuals to recruit taxpayers for their personal identifying and related information so that he could use the information to file false tax returns on their behalf. In some cases, Aboagye-Marfo obtained only the personal identifying information of individual taxpayers and filed tax returns that claimed false Schedule C businesses, regardless of the individual’s income or employment status, qualifying that individual for large tax refunds. In some instances, Aboagye-Marfo also reported false dependents on the tax returns. Aboagye-Marfo charged a fee for his services and he also claimed a portion of the false tax refund proceeds for himself.
Sentencing is scheduled for May 15 before U.S. District Court Judge George A. O’Toole. Aboabye-Marfo faces a statutory maximum sentence of five years in prison and a $250,000 fine for each count.
This case was investigated by the special agents of IRS - Criminal Investigation. Trial Attorney Jeffrey B. Bender and Assistant Chief Karen Kelly of the Justice Department’s Tax Division are prosecuting the case.
Man Sentenced in Federal Court on Gun ChargesRead the Press Release
MOBILE, Ala. – Daniel Williams, 36, of Marion, Alabama, was sentenced in federal court on gun charges. Federal law prohibits possession of a firearm by a person who had been committed to a mental institution, and court documents showed that Williams had been committed by an Alabama state judicial officer to a mental institution on two separate occasions. Court documents also showed that he was found in possession of an AK 47 rifle and a 9 millimeter handgun in March of 2013 when Marion police officers searched his vehicle in connection with a shooting that occurred in Marion. Williams admitted to state investigators and to a special agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives that he had his girlfriend buy the AK 47 for him because he was not able to buy it himself. Williams also admitted that he knew he could not possess the weapons legally.
United States District Court Judge Callie V. S. Granade imposed a sentence of 24 months imprisonment in the case, and ordered that Williams undergo mental health counseling and treatment while he is incarcerated. She also ordered that he undergo additional mental health treatment during a three-year term of supervised release, which will commence when Williams is released from prison. She further ordered that he be monitored for drug abuse during his supervision. No fine was imposed in Williams’ case, but he was ordered to pay $100 in special assessments.
The case was investigated by the 4th Judicial Circuit Task Force, the Alabama Attorney General’s Office, the Marion Police Department, the Alabama Bureau of Investigations, 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.
Malvern Company Pays $265,000 to Resolve Overbilling AllegationsRead the Press Release
PHILADELPHIA - Silicon Power Corporation, a manufacturer of semiconductor devices and high-power utility systems in Malvern, Pennsylvania, has agreed to pay $265,000 to resolve civil allegations that the facility overbilled and mischarged the United States Army under two contracts, announced United States Attorney Zane David Memeger.
Specifically, the United States alleged that between 2004 and 2012, Silicon Power overbilled and mischarged the Army under the contracts by billing: the same amount on multiple vouchers; sums reflected in purchase orders when the invoices reflected lower actual costs; sums that subcontractors had credited back to Silicon Power; sums that reflected accrued expenses when Silicon Power incurred lower actual invoiced expenses; sums that failed to reflect volume discounts that Silicon Power received; sums for travel expenses that were higher than Silicon Power’s internal cost reports for the travel; sums that Silicon Power carried over from previous vouchers without adjusting to reflect current costs; and sums for project numbers for which the contracts did not allow payment. As part of the settlement, Silicon Power did not admit to liability or wrongdoing.
“This agreement demonstrates our commitment to ensuring that defense contractors meet their obligations and comply with Department of Defense rules and regulations,” said Memeger. “Agreements like these preserve the integrity of the procurement system and save money for the United States and the taxpayers.”
The allegations arose from an investigation led by the Defense Criminal Investigative Service and the United States Army Criminal Investigation Command – Major Procurement Fraud Unit. The case was handled by Assistant United States Attorneys Michael S. Macko and Mark J. Sherer.
Lower Brule Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on February 2, 2015, by U.S. District Judge Roberto A. Lange.
Joseph Thompson, age 23, was sentenced to 18 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Thompson was indicted by a federal grand jury on July 15, 2014. He pled guilty on November 18, 2014.
The conviction stems from an incident in the early morning hours of May 3, 2014, when Thompson, the victim, and others were at a party in Lower Brule. Thompson and the victim began to argue. The defendant assaulted the victim, which resulted in a deep wound to the victim’s forehead, penetrating the skull bone. The wound required 27 sutures to close.
This case was investigated by Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Thompson was immediately turned over to the custody of the U.S. Marshals Service.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 4, 2015, Jason Robert Jackson, 25, of Lincoln, was sentenced to 21 years and 10 months (262 months) in prison for conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine and a mixture or substance containing marijuana between January of 2012 and October of 2013. In October of 2013, Jackson was found in possession of a small amount of methamphetamine, and a search of his Lincoln residence resulted in the seizure of five pounds of marijuana. Information provided to law enforcement indicated that Jackson was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine and at least 2.5 kilograms (5 ½ pounds) of marijuana during the term of the conspiracy. Following the prison term, Jackson will serve five years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lehigh County Couple Charged in Scheme to Defraud the GovernmentRead the Press Release
Yujie Ding, 52, and Yuliya Zotova, 40, of Center Valley, Pennsylvania, were charged by indictment, unsealed today, with ten counts of wire fraud related to a government program meant to increase research and development opportunities for small businesses, announced United States Attorney Zane David Memeger.
The Small Business Innovation Research (SBIR) program was created by Congress in 1982 and has requirements aimed to combat fraud, waste, and abuse. According to the indictment, in August 2009, Ding and Zotova submitted a proposal to NASA to fund a research project aimed at creating a device to detect trace levels of chemicals. The defendants’ proposal claimed they would conduct the research at their business, ArkLight, and would subcontract some of the work to an area university where Ding was employed. The indictment alleges that the defendants knew they had no such facility in which to conduct the research and were, instead, using ArkLight as a front to funnel federal grant money to themselves for research performed by students and others working in Ding’s university lab. It is further alleged that the defendants sent to NASA, via electronic transmission, invoices totaling $560,000 for work that was not performed to the specifications of the proposals and received a portion of that amount.
If convicted of all charges, each defendant faces a maximum possible statutory sentence of 200 years in prison, three years of supervised release, a fine of up to $2.5 million, a $1,000 special assessment, and forfeiture.
The case was investigated by the National Aeronautics and Space Administration's Office of Inspector General, the Defense Criminal Investigative Service, and the United States Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorneys Elizabeth Abrams and Gregory David.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Las Vegas Man Indicted for Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Las Vegas, Nevada, man has been indicted by a federal grand jury on two counts of Sex Trafficking by Force, Fraud, or Coercion.
Robert Ryan Powell, age 34, was indicted on January 21, 2015. He appeared before U.S. Magistrate Judge Veronica Duffy on January 23, 2015, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 15 years’ imprisonment up to life imprisonment and/or a $250,000 fine, a mandatory minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between January 1, 2014, and January 13, 2015, in Rapid City and elsewhere, Powell caused two females to engage in commercial sex acts, for his own financial benefit.
The charges are merely accusations and Powell is presumed innocent until and unless proven guilty.
The investigation was conducted by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Powell was detained pending trial. A trial date has not been set.Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – David Enriquez, 27, of Las Cruces, N.M., pled guilty this morning in Las Cruces federal court to methamphetamine trafficking charges.
Enriquez is one of three residents of Las Cruces who were charged in a four-count indictment that was filed in June 2014. Enriquez and co-defendant Josh Almaguer, 32, were arrested in Aug. 2014; their co-defendant Renelle Serna, 24, previously was arrested in July 2014. The indictment charged the three with trafficking methamphetamine in Doña Ana County, N.M., in May 2014.
During today’s proceedings, Enriquez pled guilty to Counts 1 and 2 of the indictment charging him with distributing methamphetamine on two occasions in May 2014. In entering his guilty plea, Enriquez admitted distributing a gram of methamphetamine to an undercover agent on May 9, 2014. Enriquez also admitted that he and his co-defendants distributed 14 grams of methamphetamine to an undercover agent on May 20, 2014.
Serna pled guilty on Jan. 6, 2014, to a felony information charging her with two counts of distributing methamphetamine and two counts of possession of more than 50 grams of methamphetamine with intent to distribute. In entering her guilty plea, Serna admitted that she and her co-defendants distributed methamphetamine to an undercover agent on two occasions on May 20, 0214. The first distribution involved 14 grams of methamphetamine and the second involved 28 grams. Serna also admitted possessing 146 grams of methamphetamine with intent to distribute on May 23, 2014. She also admitted that on July 25, 2014, she possessed 134.6 grams of methamphetamine with the intention of distributing the drugs.
At sentencing, Enriquez faces a statutory maximum penalty of 20 years, and Serna faces a minimum of five years and a maximum of 40 years in prison. Both remain in federal custody pending their sentencing hearings which have yet to be scheduled.
Almaguer has entered a plea of not guilty to the indictment. The charges in the indictment are merely accusations and Almaguer is presumed innocent unless proven guilty.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force (RIDTF)/Metro Narcotics Task Force. The case is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department and the Doña Ana County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Lakewood Man Indicted for Possessing and Distributing Child PornographyRead the Press Release
Cory A. Buckholz, 24, of Lakewood, was charged with distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about May 13, 2014, through on or about May 19, 2014, Buckholz knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. It is further alleged that on August 1, 2014, Barnhill possessed a black, homemade, tower computer, a Western Digital external hard drive, and a Seagate external hard drive that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the United States Secret Service and the Ohio Internet Crimes Against Children Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Kissimmee Man Sentenced to More Than 12 Years for Receiving Child Pornography OffenseRead the Press Release
Orlando, Florida – United States District Judge Paul G. Byron has sentenced Cruz Vicente, Jr. (57, Kissimmee) to 12 years and 7 months in federal prison for receiving child pornography. The Court also ordered him to serve a 20-year term of supervision following his release from prison and to forfeit the electronic devices that he had used to commit the crime. Vicente pleaded guilty on October 8, 2014.
According to court documents, an undercover FBI investigation determined that Vicente was making child pornography available for download by others using an Internet peer-to-peer file sharing program. On May 21, 2014, agents executed a federal search warrant at Vicente’s residence and recovered his laptop computer. Forensic analyses subsequently revealed that the computer contained more than 3,000 images and 76 videos depicting child pornography, including images of young children being sexually abused.
This case was investigated by the FBI and prosecuted by Assistant United States Attorney Andrew C. Searle.It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Kanawha County woman pleads guilty to oxycodone crimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Whitney Reanne Kent, 26, of London, Kanawha County, West Virginia, pleaded guilty to possession of oxycodone with the intent to distribute.
On Dec. 5, 2012, investigators with the United States Postal Inspection Service and Metropolitan Drug Enforcement Network Team were conducting a drug interdiction operation at the United States Post Office in Charleston when they executed a search warrant on a package addressed to Kent. The package contained 87 30-mg oxycodone tablets.
The investigators confronted Kent on Dec. 7, when she came to pick up the package. She admitted it contained oxycodone, and she intended to distribute the pills to another individual.
Kent faces up to 20 years in federal prison, and a fine of $1 million. She is scheduled to be sentenced on May 11, 2015.
United States District Judge Thomas E. Johnson presided over the plea hearing.
The case is being investigated by the U.S. Postal Inspection Service and MDENT. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communications across the Southern District.
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Jury Finds Rosebud Man Guilty of Possession of an Unregistered Firearm and Prohibited Person in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that Clyde Aquallo, age 40, of Rosebud, South Dakota, was convicted of Possession of an Unregistered Firearm and Prohibited Person in Possession of a Firearm, following a four-day jury trial in Pierre, South Dakota. The verdict was returned on January 30, 2015.
The jury found Aquallo not guilty of Assault with a Dangerous Weapon, Using and Carrying a Firearm During and In Relation to a Crime of Violence, and Distribution of a Controlled Substance.
The charges of conviction carry a maximum penalty of 10 years of imprisonment and/or a $250,000 fine, and forfeiture of firearms and ammunition.
Aquallo’s convictions arose from incidents that occurred on February 27, 2014, when Aquallo had been using methamphetamine and possessed several firearms at the home where he was residing in Todd County. Among the firearms he possessed was a sawed-off shotgun with a barrel of less than 18 inches in length. Aquallo said he kept the shotgun for a couple of weeks because he was going to fix it for a relative, but the firearm was not lawfully registered to him in in the National Firearms Registration and Transfer Record. Aquallo also never fixed the sawed-off shotgun.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U. S. Attorneys Tim Maher and Carrie Sanderson.
A presentence investigation was ordered, and a sentencing date was set for April 20, 2015, at 3:00 pm.
Aquallo was remanded to the custody of the U. S. Marshals Service to await sentencing.
Jury Convicts Waco Man of Federal Drug ChargeRead the Press Release
A Waco, TX, man faces up to 20 years in federal prison after a jury convicted him today of his role in a family-based marijuana distribution conspiracy announced Acting United States Attorney Richard L. Durbin, Jr.
A federal jury in Waco convicted 59-year-old Phillip Larry Koss of conspiracy to possess with intent to distribute in excess of 50 kilograms of marijuana. The jury acquitted him of one count of possession with intent to distribute marijuana and one count of maintaining a drug involved premise. According to evidence presented during trial, the defendant participated in a drug trafficking scheme by using his bank account to finance portions of the operation including paying for cell phones, marijuana cultivating equipment and other miscellaneous bills.
On November 29, 2013, authorities executed a search warrant at the defendant’s residence and discovered approximately 12 pounds of tetrahydrocannabinol, commonly known as THC, several firearms and $27,000 in U.S. Currency. Authorities have also recovered approximately 200 pounds of marijuana resulting from related search warrants executed in California as well as traffic stops during this investigation. Testimony also revealed that Koss’ son, Conner, among others, cultivated high grade marijuana in the State of California and arranged for it to be transported to and distributed in the Austin area.
In July 2014, Phillip Larry Koss entered a guilty plea to possession with intent to distribute marijuana, but withdrew his guilty plea in November 2014 prior to sentencing. Sentencing for Phillip Larry Koss based on the jury’s verdict is scheduled for April 1, 2015, in Waco before United States District Judge Walter S. Smith, Jr.
Koss’ four co-defendants, including his wife and two sons, have been convicted of their roles in the marijuana trafficking conspiracy and sentenced as a result of this investigation. Last year, Conner Phillip Koss received a sentence of 121 months incarceration; Le’Ann Koss, 70 months incarceration; and, Brian Thomas Smith, two years incarceration. On January 7, 2015, Chad Koss was sentenced to three years probation including six months home confinement and ordered to pay a $1,000 fine.
This investigation was conducted by the McGregor Police Department, Texas Department of Public Safety and the Yuba County (CA) Narcotics Enforcement Team. Assistant United States Attorney Mary F. Kucera prosecuted this case on behalf of the Government.
Judge Sends Former Philadelphia Police Officers to Prison for Robbery and Drug SchemeRead the Press Release
PHILADELPHIA - Former Philadelphia Police Officers Jonathan Garcia, 26, and Sydemy Joanis, 28, both of Philadelphia, were sentenced today to 210 months and 63 months, respectively, for a scheme to rob drug dealers of their cash proceeds. Garcia pleaded guilty July 30, 2013 to distribution of heroin, conspiracy to commit robbery, robbery, attempted robbery, and carrying a firearm during and in relation to a crime of violence. Joanis pleaded guilty February 11, 2014 to conspiracy to commit robbery, robbery, attempted robbery, and carrying a firearm during and in relation to a crime of violence.
The defendants were assigned to the 17th Police District when, in December 2009, they entered into a scheme by which they agreed to rob suspected drug dealers. Sometimes the defendants would stop and frisk individuals who were allegedly loitering, and if the defendants recovered any drugs, they would arrest the person and steal some or all of his money. Other times the defendants utilized Person #1, who, at the defendants’ direction, would meet with a suspected drug dealer inside the dealer’s car, buy a small quantity of drugs (usually crack cocaine), and then leave some of the drugs in plain view on the floorboard of the car. After Person #1 exited the dealer’s car, the defendants would pull up in their PPD patrol car, stop the dealer, and after seeing the drugs in plain view, arrest the dealer and ultimately steal some or all of the dealer’s money, which the defendants would split amongst themselves. When committing these robberies, the defendants wore their PPD uniform and openly carried firearms. To conceal their crimes, the defendants falsified police reports by failing to disclose their use of Person #1 and fabricating the basis for the stop, and by failing to disclose some or all of the money that they had stolen.
In addition to the prison terms, U.S. District Court Judge Legrome Davis ordered Garcia to pay a fine of $5,000, a special assessment of $900, and ordered five years of supervised release; Joanis was ordered to pay a fine of $2,000, a special assessment of $400, and was ordered to complete three years of supervised release.
The case was investigated by the FBI and the Philadelphia Police Department and was prosecuted by Assistant United States Attorney Kevin R. Brenner.
Investment Managers Arrested and Charged in $11 Million Investment and $8 Million Bank Fraud SchemesRead the Press Release
John R. Lakian and Diane W. Lamm have been charged in a five-count indictment alleging conspiracy to commit securities, wire and bank fraud, and two counts of substantive securities fraud in connection with schemes to defraud investors and banks of millions of dollars. The defendants will be arraigned later today at the federal courthouse in Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to the indictment, between February 2009 and July 2013, the defendants were involved in two schemes to steal investors’ money. In the first, the defendants obtained more than $11 million by promising investors that their money would be used to purchase, consolidate and sell registered investment advisory businesses. Instead of investing
the money as promised, the defendants diverted a significant amount of it into their own pockets, to restaurant businesses they controlled, and to pay Lakian’s home mortgage. In the second scheme, the defendants perpetrated fraud through their management of the liquidation of a North Carolina-based investment fund with more than 100 investors. Instead of returning the fund’s proceeds to investors, Lakian and Lamm diverted investors’ money to themselves and to restaurant businesses they controlled. In addition, the indictment alleges a third scheme in which, between 2009 and 2012, Lakian and Lamm submitted fake tax returns, bank statements, and other false documents to banks in Brooklyn, Long Island, and elsewhere in applications to obtain more than $8 million in loans. These forged documents overstated Lakian’s income and assets by millions of dollars.
“As alleged, Lakian and Lamm preyed upon more than 100 investors, in multiple schemes, stealing their hard-earned money to use for their own purposes. They similarly disregarded the interests of lending institutions by submitting forged documents to banks in an attempt to fraudulently secure more than $8 million in loans” stated United States Attorney Lynch. “This Office will investigate and prosecute to the fullest extent those who victimize investors and commit financial fraud.”
“As charged, instead of carefully investing their clients’ money, one defendant paid off his mortgage, and in another instance the defendants diverted cash to a restaurant venture. They lied, cheated, and stole. This type of behavior is unacceptable. It’s also illegal. And it should be a stark reminder to anyone who is driven by greed. These insidious investment schemes will be identified and disrupted,” stated FBI Assistant Director-in-Charge Rodriguez.
The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum sentence of 30 years’ imprisonment on the bank fraud count, 20 years on each of the securities fraud counts, and 5 years on the securities and wire fraud conspiracy counts. Additionally, if convicted, Lakian and Lamm may be fined up to $5 million for the securities fraud counts and $1 million for the bank fraud count.
The government’s case is being prosecuted by Assistant United States Attorney Whitman G.S. Knapp and Brian D. Morris.
This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendants:
JOHN R. LAKIAN
Age: 72
Highlands, North Carolina
DIANE W. LAMM
Age: 54
Highlands, North Carolina
E.D.N.Y. Docket No. 15-CR-0043 (FB)
Identity Theft and Bank Fraud Convictions Result in a Federal Prison SentenceRead the Press Release
Counterfeit Checks and Victim Identification Used in Scheme to
Defraud Banks and BusinessesMEDFORD, Ore. - Ryan Juan Pitcher, 38, and Shawn Francis Farrell, 31, both from Medford, Oregon, and Logan Chad Clark, 25, Rogue River, Oregon were sentenced to federal prison Tuesday by U.S. District Judge Owen M. Panner for their convictions for conspiracy to commit bank fraud, aggravated identity theft and possessing and passing counterfeit checks. Pitcher was sentenced to 94 months; Farrell was sentenced to 36 months; and, Clark was sentenced to 24 months in addition to the time he had already served in federal custody. As part of each sentence, each defendant received a mandatory consecutive term of two years in prison required by federal statute where a victim’s identification was possessed or used in committing bank fraud.
According to documents filed with the court, Assistant U. S. Attorney Byron Chatfield said Pitcher was instrumental in committing all of the offenses that occurred in the latter part of 2013. He stole mail from postal collection boxes and mailboxes belonging to businesses and individuals and then used the personal identification to create various counterfeit identification and numerous counterfeit checks. In accomplishing the scheme, he used computers, printers, check-making software and paper stock to make the checks. He provided the items to other co-conspirators instructing them on how and where to negotiate the counterfeit checks. As part of their compensation, he provided them with drugs and/or money. Pitcher also has four prior state convictions for identity theft that included the use of stolen mail in passing fraudulent checks, as well as one other federal conviction in Oregon for possessing stolen mail.
Also according to court documents, Farrell committed much of the criminal activity on his own without participation of the other co-conspirators. He made counterfeit identification from a victim’s driver’s license he had stolen from the mail and used it multiple times to negotiate counterfeit payroll checks including opening a bank account in the victim’s name and, after depositing counterfeit checks, withdrawing money from bank branches in Ashland and Grants Pass, Oregon. Police arrested Farrell when he attempted to cash a counterfeit payroll check at another bank in Grants Pass. When police arrived, he assumed the identity of the victim, presenting the victim’s US Passport he had used in attempting to pass the counterfeit check. Several months earlier, Farrell was also convicted of identity theft in Jackson County, Oregon and was currently on probation when he committed the federal offenses.
Also according to court documents, defendant Clark traveled with Pitcher to various locations in Southern Oregon cashing counterfeit checks at businesses and banks. Clark was apprehended following a vehicle crash, but Pitcher eluded police on foot. Print logs from a laptop computer recovered from the vehicle revealed that out of 98 counterfeit checks, 37 checks were made payable to Clark. There were also other numerous counterfeit checks recovered from the vehicle made payable to Clark.
The other federally charged defendants, Shayna Campos, 23, and Nathan David Meyer, 29, are scheduled to be sentenced in the next few months. Cinnamon Danielle Duck, 23, is pending trial.
This case was investigated by the Medford Police Department, the Douglas County Sheriff’s office, Grants Pass Department of Public Safety and the U.S. Postal Inspection Service and prosecuted by Assistant U. S. Attorney Byron Chatfield.
Houston Man Sentenced for Beaumont Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old Houston man has been sentenced to federal prison for robbing a bank in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher M. Carmon Thomas pleaded guilty on July 29, 2014 to bank robbery and was sentenced to 37 months in federal prison today by U.S. District Judge Thad Heartfield. Thomas was also ordered to pay restitution in the amount of $2,309.00.
According to information presented in court, on June 3, 2014, Thomas entered the Wells Fargo Bank on Gladys Avenue in Beaumont, Texas and presented the bank teller with a demand note. During the robbery, Thomas displayed a gun tucked into his pants by lifting his shirt. Thomas fled the bank with $2,309.00. Surveillance camera photographs were disseminated by the media and Thomas was identified by citizen tipsters and the victim bank teller. Thomas was taken into custody in Houston on June 25, 2014.
This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Former Beaumont ISD Employees Indicted for Theft, CheatingRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A former Beaumont Independent School District (BISD) Assistant Superintendent was one of two employees indicted on federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Patricia Adams Lambert, 60, of Beaumont and Victoria Gauthier Steward, 31, of Lake Charles, LA, were named in the five-count indictment returned by a federal grand jury today. Lambert and Steward are accused of conspiring to cheat on standardized test results while Lambert is also alleged to have embezzled over $750,000 from the school district.
According to the indictment, Lambert is alleged to have devised several schemes to defraud the school district and even the students directly while employed with BISD. In October 2006, while Lambert was principal of Central Medical Magnet High School (CMMHS), she took control of the CMMHS booster club, which raises money to support various athletic teams at the school. The booster club raises funds largely through concession sales at football games and had been controlled by parents in the past. Lambert is alleged to have diverted funds from the booster club account, which was not subject to BISD oversight or auditing, by writing checks payable to her children and then depositing them directly into her own personal account. In addition to stealing directly from the booster club account, Lambert is also alleged to have diverted funds which traditionally had been deposited into the Student Activity Account, which is subject to oversight and auditing, to the booster club account. An example of diverted funds is student transcript fees, which are usually $5 or less. Lambert also diverted money from the Medical Magnet program to the booster club account. Students enrolled in the program, which allows them to earn college credit while attending high school, were required to pay tuition fees which amounted to $275 per student per year for the 2010-2011 school year. However, Lambert is alleged to have inflated the fees, requiring students enrolled in the program to pay $1,000 per student per semester and that payments be made in cash or by money order. In 2007, Lambert assisted a close family member in becoming an authorized vendor with BISD. From 2007-2013, Lambert directed that all printing and graphic work prepared for CMMHS be done through her family member’s companies. This scheme alone resulted in approximately $480,000 paid by CMMHS or BISD at Lambert’s direction. The indictment alleges that Lambert’s fraudulent activity amounted to $751,602.76.
The indictment also alleges that in order to increase the standardized test scores at CMMHS, Lambert directed others to change students’ tests before submitting the answer documents to the BISD administration building for forwarding to the State of Texas’ contractor for analysis. Steward, a teacher at CMMHS, is alleged to have performed a large portion of the actual test changing and on more than one occasion, would provide teachers with a stack of tests and an answer key.
Lambert is charged with four counts of fraud upon programs receiving federal funds and if convicted, faces up to 10 years in federal prison on each count. Lambert and Steward are both charged with conspiracy and if convicted, each face up to five years in federal prison.
This case was prosecuted as part of the Joint Task Force established in March 2014 between the U.S. Attorney’s Office for the Eastern District of Texas and the Jefferson County District Attorney’s Office to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust in Jefferson County, Texas.
If you have any information related to this matter, please call the Federal Bureau of Investigation at 409-832-8571.
This investigation was conducted by the Federal Bureau of Investigation, the Department of Education Office of Inspector General, the Texas Education Agency, the Jefferson County District Attorney’s Office and the Beaumont Police Department. This case is being prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Arrow Trucking Executive Pleads Guilty in Multi-Million Dollar FraudRead the Press Release
TULSA, Okla. – James Douglas Pielsticker, former Chief Executive Officer and President of Arrow Trucking Company, pleaded guilty today before United States District Court Chief Judge Gregory K. Frizzell to conspiring to commit bank fraud, tax fraud, and evading his personal income taxes.
United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma, Principal Deputy Assistant Attorney General Caroline D. Ciralo for the Justice Department’s Tax Division, Special Agent in Charge James E. Finch of the FBI’s Oklahoma City Division Office, and Special Agent in Charge Damon Rowe of the IRS-Criminal Investigation’s Dallas Division Office made the announcement.
Pielsticker, 46, of Dallas, Texas, formerly of Tulsa, Oklahoma, was indicted by a grand jury on December 1, 2014. According to court documents, Arrow Trucking withheld payroll taxes from employees’ wages. Beginning in 2009, Pielsticker, Jonathan Leland Moore, the former Chief Financial Officer of Arrow Trucking Company, and others conspired to defraud the United States by, among other things, failing to account for and pay over more than $9 million in payroll taxes, including federal income tax, Medicare and social security taxes, for Arrow Trucking employees. As part of the conspiracy, Pielsticker’s co-conspirators provided Transportation Alliance Bank (TAB), a financial institution in Ogden, Utah, with fraudulent and misleading invoice data that inflated amounts due to Arrow Trucking. As a result of this false information, the TAB paid Arrow Trucking more money than Arrow Trucking was entitled to receive under the companies’ agreement.
As part of the plea agreement, Pielsticker admitted that he evaded his individual income taxes due and owing to the United States for 2009 by causing Arrow Trucking to spend thousands of dollars on his various personal expenses, including payments related to his wedding and on Bentley and Maserati automobiles.
Pielsticker faces a statutory maximum penalty of ten years in prison. In addition, Pielsticker faces money judgments in an amount representing proceeds obtained as a result of his participation in a conspiracy to defraud the United States and to commit bank fraud.
The case was investigated by the FBI and IRS-CI; Department of Justice Tax Division Trial Attorney Charles A. O’Reilly and Assistant U.S. Attorneys Jeffrey A. Gallant and Catherine Depew are prosecuting the case.
(U.S. v. James Douglas Pielsticker )
Florida Man Sentenced to More Than 6 Years in Prison for Role in Multimillion Dollar Drug TheftRead the Press Release
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The United States Attorney for the District of Connecticut announced that YOSMANY NUNEZ, also known as “El Gato,” 42, of Southwest Ranches, Fla., was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 75 months of imprisonment, followed by three years of supervised release, for his role in the theft of pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Conn.
According to court documents and statements made in court, in early 2010, NUNEZ, Amaury Villa, Amed Villa and Alexander Marquez planned to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield. The investigation revealed that, prior to the theft, NUNEZ and Amaury Villa traveled from the Miami area to Connecticut to gather information about the warehouse facility and the surrounding area. Shortly before the theft, Amed Villa and Rafael Lopez traveled to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.
In the evening of March 13, 2010, individuals involved in the theft dropped off a ladder in the rear parking lot of the warehouse facility and left. That same night, Marquez drove a tractor trailer to the facility. Thereafter, Amed Villa and Amaury Villa carried the ladder to the building, checked for security in the front area, climbed onto the roof, used the tools Amed Villa and Lopez had purchased to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. Amaury Villa, Amed Villa and NUNEZ then loaded more than 40 pallets of pharmaceuticals into the tractor trailer, which had been backed up to the loading dock of the warehouse.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued between $50 and $100 million.
The individuals who participated in the theft split up in Connecticut. Marquez then drove the tractor trailer to Florida, where he subsequently reunited with Amaury Villa, Amed Villa and NUNEZ so the pharmaceuticals could be transferred from the tractor trailer into self-storage units in the Miami area.
On October 14, 2011, law enforcement authorities searched a storage facility in Florida and recovered pharmaceuticals that had been stolen from the Enfield warehouse.Judge Arterton ordered NUNEZ to pay restitution in the approximate amount of $60 million, but the exact amount of restitution to be ordered will be determined after further submissions by the parties.
NUNEZ, a citizen of Cuba, has been detained since his arrest on April 17, 2014. On November 5, 2014, he pleaded guilty to one count of transportation of stolen property.
Amaury Villa, Amed Villa, Marquez and Lopez have pleaded guilty and await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Enfield Police Department, with the assistance of several other U.S. Attorney’s Offices and federal, state and local law enforcement agencies that have been investigating large-scale thefts of pharmaceuticals and other products.
The case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito.
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(203) 821-3722 [email protected]Federal Law Enforcement Authorities Announce Formation of Task Force to Fight Public CorruptionRead the Press Release
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United States Attorney Deirdre M. Daly and representatives from five federal law enforcement agencies today announced the formation of the Connecticut Public Corruption Task Force to investigate corrupt public officials, the misuse of public funds and related criminal activity.
The Connecticut Public Corruption Task Force includes representatives from the Federal Bureau of Investigation, United States Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, and the Inspector General’s Offices of the United States Department of Health and Human Services and the United States Department of Housing and Urban Development.
“For the first time in Connecticut, we have brought together in a single investigative unit, agents and inspectors from the federal agencies that have primary responsibility for investigating public corruption,” said U.S. Attorney Daly. “Although each of these agencies has a history of working together, bringing some of the best agents in the state into one unit with a singular purpose of investigating all manner of corruption is an optimal way to address the complex and varied threats posed by corrupt activity.”
U.S. Attorney Daly explained that the Task Force is focused on rooting out not only corrupt elected officials, but also federal, state and municipal employees who use their position for personal gain at the expense of the public good. The Task Force also will investigate corruption that threatens public resources, the electoral process, and fair economic opportunities for citizens and businesses. In addition, the Task Force is charged with uncovering corruption within both public and private institutions that receive and misuse taxpayer dollars.
Assistant U.S. Attorney Christopher M. Mattei, who is Chief of the U.S. Attorney’s Office’s Financial Fraud and Public Corruption Unit, is coordinating the Task Force. The FBI has committed resources to support all Task Force investigations and serves as the lead investigative agency.
“The New Haven Division of the FBI is joining forces with our federal agency partners to combat public corruption throughout the State of Connecticut,” said FBI Special Agent in Charge Patricia M. Ferrick. “With the assistance and cooperation of these partners, the Connecticut Public Corruption Task force is well positioned to successfully root out and put an end to public corruption within our area. Public servants are entrusted by all of us to act in the best interests of the public they serve. It is important for the United States to bring to justice those who betray that trust. Public corruption at all levels of local, state, and federal government must not be tolerated, and this task force will leverage the best assets of the task force partner agencies to address the threat posed by corrupt public officials.”
The Task Force has been at work for several months and has already made significant gains in several investigations, including the recent arrest of the former Finance Director of Plymouth who is alleged to have embezzled more than $800,000 from the town.
“The Postal Inspection Service has enjoyed a close relationship with the Connecticut U.S. Attorney’s Office through the years working intricate and complex fraud cases that involve the illicit use of the U.S Mails,” said Inspector in Charge Shelly A. Binkowski of the U.S. Postal Inspection Service. “The U.S. Postal Inspection Service welcomes the formation of the Connecticut Public Corruption Task Force, a partnership that presents a tremendous opportunity for various agencies to pool resources and expertise to ensure public officials are held accountable.”
“Investigating public corruption remains one of IRS Criminal Investigation’s highest priorities,” said William Offord, Special Agent in Charge, Internal Revenue Service. “Public trust is broken when elected or appointed officials commit crimes – most often triggered by greed and resulting in unlawful personal financial gain. IRS agents contribute their financial investigative expertise to this formidable investigative team.”
“As part of the Public Corruption Task Force, HHS OIG will ensure that the department’s dollars are not misused though public corruption and are instead used for their intended purpose of ensuring that the most vulnerable members of our society – including the elderly, poor and children – receive services funded at least in part by taxpayers,” said Phillip Coyne, Special Agent in Charge of the Boston Regional Office of the Health and Human Services Office of the Inspector General. “Working with our federal, state and local law enforcement partners, we will continue to vigorously bring those who steal from these programs to justice.”
“The core mission of the U.S. Department of Housing and Urban Development (HUD) includes creating strong, sustainable communities and quality affordable homes for all,” said Christina Scaringi, Special Agent in Charge of the Northeast Region of HUD’s Office of Inspector General. “To carry out its mission, HUD depends on the services of housing authority staff; owners and management agents of HUD-assisted multifamily developments; state, local, and municipal governments that receive HUD funding in the form of community development grants; and nonprofit organizations that administer a variety of programs including housing the homeless. HUD also oversees the administration of over $150 million awarded to the State of Connecticut for Hurricane Irene and Sandy disaster relief purposes. HUD OIG is dedicated to aggressively pursuing those who choose to engage in corrupt behavior, and we are proud to be a part of this all-important task force.”
U.S. Attorney Daly encouraged citizens to report corrupt activity by calling 1-800-CALL-FBI (1-800-225-5324).
“Connecticut’s unfortunate recent history with corruption is well known, but so is this Office’s history of combating corrupt activity,” said U.S. Attorney Daly. “Our efforts have been aided by a dogged media and courageous, conscientious citizens, business owners and public officials who have provided information about corrupt activity in their midst. We call on public servants, the vast majority of whom are honest brokers, to not look the other way when they see indications of corruption. We cannot overstate the importance of citizen participation in our fight against corruption, and we urge all citizens to assist us in this effort.”
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(203) 821-3722 [email protected]Employee of Postal Contractor Charged with Taking Cash from Cranberry Township Mail RecipientRead the Press Release
PITTSBURGH - A highway contract route driver has been indicted by a federal grand jury in Pittsburgh on a charge of theft of mail, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Feb. 3, named April Kovach, 39, of Yatesboro, Pa.
According to the indictment, on or about Oct. 8, 2014, Kovach did abstract and remove two $20 Federal Reserve notes that had been the contents of a greeting card envelope addressed to an individual in Cranberry Township.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Postal Service – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eagle Butte Woman Pleads Guilty to Second Degree MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that Jordyn Blue Coat, a/k/a Jordyn Swan, age 21, of Eagle Butte, South Dakota, appeared before District Judge Roberto A. Lange on February 2, 2015, and pled guilty to Second Degree Murder of a child.
The maximum penalty upon conviction is up to life in custody, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that occurred on October 17, 2014, when Blue Coat was the caretaker of a 20-month old child. According to Blue Coat, in the last two months of the child’s life, he frequently cried and was hard to console. The evening of October 17, the child had a messy diaper, which Blue Coat changed and temporarily left on the bedroom floor near the child, while she stepped out to use the restroom. When she returned, the child had gotten ahold of the dirty diaper and had feces all over his clothes and himself. At this time, Blue Coat became angry, lost control of her emotions and kicked the child in the head. The kick pushed the child’s head into a television stand in the bedroom. As a result, the child was unconscious and his head began to swell from the injury he received. After spending some time trying to awaken the child, Blue Coat took him to the emergency room at the Indian Health Services (IHS) Hospital in Eagle Butte.
Blue Coat told hospital medical providers that the child had “fallen two days ago in the park” and hit his head. She did not provide an accurate medical history. The child was unresponsive at the hospital. Additionally, there was swelling around the child’s left ear, eyes were swollen shut, and there was a large burn injury to the leg. The child also had multiple chronic and acute burn injuries throughout his body. Doctors at IHS immediately suspected the child had a closed head injury and air evacuated him to Rapid City Regional Hospital, where emergency medical personnel worked on him for four hours. The child died in the emergency room on October 18, 2014.
The autopsy report listed the cause of death as blunt force trauma to the head that caused acute subdural hemorrhaging and led to bilateral cerebral brain failure. The autopsy also revealed multiple burns, contusions, abrasions, and injuries to the child’s head, face, and feet, along with old and recent bone fractures.
The parties stipulated and agreed that Blue Coat had malice aforethought when she unlawfully kicked the child in the head causing his death.
The investigation was conducted by the Federal Bureau of Investigation, the South Dakota Department of Social Services, and the Cheyenne River Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered and a sentencing date was set for April 27, 2015. Blue Coat was remanded to the custody of the U.S. Marshals Service pending sentencing.
Eagle Butte Man Sentenced for Possession of A Stolen FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Possession of a Stolen Firearm was sentenced on February 2, 2015, by U.S. District Judge Roberto A. Lange.
Shilo Hill, a/k/a Shilo Robideau, age 19, was sentenced to 2 months in custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Hill was indicted for Second Degree Burglary, Larceny, and Possession of a Stolen Firearm by a federal grand jury on July 15, 2014. He pled guilty to Possession of a Stolen Firearm on November 17, 2014.
The conviction arose from an incident in March 2014, when Hill knowingly and unlawfully received, possessed, concealed, and stored a .45 caliber Glock pistol, which he had stolen. The firearm was manufactured outside of South Dakota and was shipped and transported in interstate commerce before Hill took and possessed the firearm.This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Hill was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Doctor Indicted on Charges He Illegally Distributed Drugs from Two OfficesRead the Press Release
PHILADELPHIA – Dr. Jeffrey Bado, 59, of Philadelphia, PA, was charged today by indictment with illegally distributing pain medications from his Philadelphia and Bryn Mawr medical offices, announced United States Attorney Zane David Memeger. Bado is charged with two counts of maintaining a drug-involved premises, 200 counts of illegally distributing oxycodone, a Schedule II controlled substance, outside the usual course of professional practice and for no legitimate medical purpose, as well as 33 counts of health care fraud and four counts of making false statements to federal agents.
According to the indictment, Bado, a doctor of Osteopathic Medicine, gave prescriptions for large numbers of oxycodone pills to “patients” who paid in cash for an “office visit” during which the “patient” would receive at most a cursory physical examination and little other medical care or treatment. During their first visit to Bado’s practice, new patients would still get prescriptions for large amounts of oxycodone even though they provided little or no recent medical records to verify their claim of pain, or provided medical records that were not consistent with their claims of pain.
The indictment alleges that Bado’s prescribing mirrored the needs of drug addicts and drug traffickers. Bado would allegedly comply with patient requests for pills with specific concentrations of oxycodone, and Bado would allegedly switch patients to pills with a higher street value even though there was no medical justification for the switch. Bado allegedly continued to prescribe high amounts of oxycodone even when he knew that his patients were addicted to oxycodone, were using illegal drugs, or were not even taking the oxycodone pills as prescribed.
The indictment further alleges that Bado committed health care insurance fraud by billing Medicare and private insurers for patient visits that occurred in February 2010, when Bado was out of the office and traveling in Haiti. Bado allegedly directed residents, nurses and other staff to see patients while he was away, and allegedly directed that they provide the patients with prescriptions that Bado had already filled out and signed. Before departing for his trip, Bado allegedly made notations in and signed medical charts to make it appear as though he had seen the patients when in fact he was away in Haiti during their appointments. Bado then allegedly had his office staff submit fraudulent claims to these patients’ health care insurers for the cost of the patients’ office visit as if Bado had seen these patients. It is alleged that Bado subsequently made several materially false statements to federal agents regarding the arrangements he made before leaving for Haiti, including falsely claiming that he had not filled out in advance out any medical records for the patient appointments that occurred while he was in Haiti.
If convicted of all charges, Bado faces an estimated sentencing guideline range of at least 24 years in prison with a maximum sentence of 20 years in prison for each count of oxycodone distribution and maintaining a drug premises counts, 10 years in prison for each count of health care fraud, and five years in prison for each count of making false statement counts. He also faces substantial fines and criminal forfeiture.
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of the Inspector General, the Haverford Township Police Department and the Philadelphia Police Department. It is being prosecuted by Assistant U.S. Attorneys Nancy Beam Winter and Andrew J. Schell.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Doctor Admits Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
Thirty-five Defendants – Including 24 Doctors – Have Pleaded Guilty to Roles in Massive Scheme
NEWARK, N.J. – A Middlesex County doctor with practices in Jersey City, New Jersey, today admitted accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Anthony DelPiano, 53, of Monmouth Junction, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
Including DelPiano, 35 people – 24 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has to date recovered more than $10.5 million through forfeiture.According to documents filed in this and related cases and statements made in court:
DelPiano admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid approximately $2,300 per month. DelPiano’s referrals generated at least $1,752,603.24 in lab business for BLS.
On April 9, 2013, federal agents arrested David Nicoll, 40, of Mountain Lakes, New Jersey, Scott Nicoll, 33, of Wayne, New Jersey, a senior BLS employee and David Nicoll’s brother, and Craig Nordman, 35, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Frank Santangelo, 44, of Boonton, New Jersey. In June 2013, David and Scott Nicoll, Nordman and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo, a doctor, pleaded guilty in August 2013 to charges relating to his role in the scheme
The bribery count to which DelPiano pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for May 12, 2015. As part of his guilty plea, DelPiano must forfeit $204,475, representing the total bribe monies received from BLS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Eric Welling; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS– Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
15-046Defense counsel: Wick Sollers Esq., Washington, D.C.
Detroit man pleads guilty to heroin crimeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced Tuesday that Bryant Donavan Taylor, 35, of Detroit, pleaded guilty to aiding and abetting possession of heroin with the intent to distribute.
On August 21, 2013, agents with the Huntington Violent Crimes and Drug Task Force executed a search warrant at a residence in the 200 block of 8th Ave. in Huntington. The residence was rented by another man, and utilized by Taylor and others to distribute heroin. During the search, Taylor and two other men were present, and agents seized 134.8 grams of heroin and $10,431.76.
Taylor stated that he jointly possessed the heroin with a partner for distribution.
On August 22, 2013, agents executed a second search warrant at the same residence, and seized $3,000 concealed within a television.
Taylor stated the currency seized during both searches was proceeds from heroin distributions.
Taylor faces up to 40 years in federal prison and, a $5 million fine. He is scheduled to be sentenced on May 4, 2015.
Chief United States District Judge Robert C. Chambers presided over the plea hearing.
The case is being investigated by the Huntington Violent Crimes and Drug Task Force. Assistant United States Attorney Joseph Adams is in charge of the prosecution.
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Detroit man pleads guilty to heroin chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced Tuesday that Kenneth D. Bowden, 28, of Detroit, pleaded guilty to possession of heroin with intent to distribute.
On April 8, 2014, Huntington Police Department officers executed a search warrant at an apartment in the 900 block of 6th St. in Huntington. Bowden was staying in the apartment at the time of the search warrant. When they entered the apartment, officers observed Bowden and a second individual exiting through the rear bedroom. During the search, officers found a bag containing 113.7 grams of heroin. The HPD Forensic Investigations Unit located a usable print on the bag, and verified it to be Bowden’s right thumb print.
Bowden stated he possessed the heroin for the purpose of distribution.
Bowden faces up to 40 years in federal prison and, a $5 million fine. He is scheduled to be sentenced on May 11, 2015.
Chief United States District Judge Robert C. Chambers presided over the plea hearing.
The case is being investigated by the Huntington Violent Crimes and Drug Task Force. Assistant United States Attorney Joseph Adams is in charge of the prosecution.
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Detroit drug dealer convicted by federal jury gets 30 yearsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Willie Slocum, Jr., 36, of Detroit, was sentenced to 30 years in federal prison.
Following a five-day trial in November 2014, Slocum was convicted by a federal jury in Charleston of conspiracy to distribute heroin, conspiracy to distribute oxycodone, two counts of being a felon in possession of a firearm and one count of tampering with a witness.
Fifteen witnesses who purchased pills and heroin from Slocum, or sold them for him in the Charleston area testified before the jury to his guilt. Slocum ran his drug trafficking organization from Detroit, traveling to West Virginia while still on parole for a 1999 murder conviction in Michigan. It was this conviction, along with convictions for assault with intent to murder and felony possession of firearms, that prohibited Slocum from possessing a firearm.
Slocum used violence and threats of violence to keep his lower level dealers in line. He told Matt Quinn, an addict and low-level dealer, that if he got behind on his money that “he might as well jump in the river.” Going beyond words, Slocum stabbed Chris O’Dell after he found O’Dell had stolen money and heroin from one of Slocum’s dealers.
United States District Judge John T. Copenhaver imposed the sentence.
The case was investigated by the Kanawha County Sheriff’s Department. Assistant United States Attorney Steven I. Loew was in charge of the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communications across the Southern District.
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Delray Beach Doctor Charged with Health Care FraudRead the Press Release
A Delray Beach doctor has been charged with eight counts of health care fraud.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Derrick Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
According to allegations in the indictment, Isaac Kojo Anakwah Thompson, M.D., 55, operated Isaac K. A. Thompson, M.D., P.A. in Delray Beach, and IM Medical P.A. in Boynton Beach, Florida. These clinics were Primary Care Physicians (PCP) in Humana’s HMO network. Therefore, a beneficiary enrolled in a Humana health maintenance organization (HMO) Medicare Advantage plan could choose Thompson’s clinics as the beneficiary’s PCP. Humana paid each clinic approximately 80% of the capitated fee associated with each beneficiary who had selected the clinic as his or her PCP.
Thompson defrauded Medicare by submitting fraudulent diagnoses to Humana for Medicare Advantage beneficiaries. Humana reported the diagnoses to Medicare, and Medicare in turn increased the capitation payments associated with many of the beneficiaries. In total, Medicare paid at least approximately $2.1 million in excess capitation fees as a result of the scheme. Humana paid approximately 80% of the increased capitation payments to Thompson’s clinics. Because the diagnoses were false, Thompson did not have any corresponding increase in his cost to treat the patients.
According to the allegations in the indictment, the Medicare Advantage program is a voluntary program which allows Medicare beneficiaries to enroll in health insurance plans sponsored by private insurance companies. For each beneficiary who chooses to enroll in a Medicare Advantage plan, Medicare pays the sponsoring insurance company a fixed, or capitated, monthly fee. Medicare does not adjust the fee based on the cost of providing medical care to the beneficiary. Instead, Medicare adjusts the fee based on the beneficiary’s medical conditions. In other words, Medicare generally pays a larger capitated fee for a beneficiary with more serious medical conditions than it does for a healthier beneficiary. Medicare determines a beneficiary’s medical conditions in part using diagnoses submitted by the beneficiary’s Medicare Advantage plan. The fraud in this case involved certain Medicare Advantage plans sponsored by Humana, Inc. These Humana plans operated as HMO: each enrolled beneficiary selected a PCP enrolled in Humana’s network. Before seeing a specialist, the beneficiary generally needed a referral from his or her PCP.
If convicted, Thompson faces maximum possible statutory sentences of 10 years in prison for each count.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
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.
Dansville Man Pleads Guilty to Production of Child PornographyRead 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 Ryan C. Lander, 28, of Dansville, NY, pleaded guilty to production of child pornography before U.S. District Judge Richard J. Arcara. The charge carries a minimum penalty of 15 years in prison, a maximum of 30 years, a fine of $250,000 or both.Assistant U.S. Attorney Kathleen A. Lynch, who is handling the case, stated that between July 2011 and March 7, 2013, the defendant coerced a minor under the age of 12 to engage in sexually explicit conduct. During this conduct, Lander took pictures of the minor. The images were produced using electronic materials, including a computer.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Special Agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for May 14, 2015 at 12:30 p.m. before Judge Arcara.
Dallas Man Faces up to Life in Federal Prison for Sex Trafficking A 17-Year-Old RunawayRead the Press Release
DALLAS — A Dallas man who met a 17-year-old female on the Internet, convinced her to leave her foster home and go to Texas with him where he facilitated her engagement in commercial sex acts, pleaded guilty yesterday in federal court, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Ladestro Douglas, a/k/a “Derek Douglas,” 35, appeared before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of conspiracy to commit sex trafficking of children. Douglas faces a maximum statutory sentence of life in federal prison. Sentencing is set for June 3, 2015.
According to documents filed in the case, in May 2012, Douglas contacted 17-year-old “Jane Doe #1” on the Internet and began communicating with her. He convinced her to leave her foster home in Alabama and travel with him to Texas. When they arrived in Texas, Douglas facilitated Jane Doe #1 engaging in commercial sex acts. He took provocative photos of her for use on commercial sex websites; posted her on Backpage.com and other similar commercial sex websites; provided her with contraceptives to use with customers; and drove her to various cities to engage in commercial sex acts. Jane Doe #1 gave Douglas all of the money she earned.
In June 22, 2012, officers with the Dallas Police Department responded to a disturbance call at a local hotel. In the parking lot, they encountered Jane Doe #1, who explained that she had gotten in an altercation with her pimp, Douglas. Officers learned Jane Doe #1 was a 17-year-old runaway from Alabama, and they arrested Douglas. Douglas admitted that he knew she was age 17 and that she had been engaging in commercial sex acts throughout Texas. Afterwards, Jane Doe #1 lost contact with Douglas for several months, but after she turned 18, they reunited and Douglas continued to facilitate her commercial sex acts.
In December 2013, Jane Doe #1 and another woman were in Odessa, Texas, working at Douglas’s direction. They encountered 16-year-old Jane Doe #2 walking down the street, offered her a ride and she joined them. Jane Doe #1 contacted Douglas about Jane Doe #2 and he travelled to Odessa to meet her.
Douglas, Jane Doe #1 and Jane Doe #2 traveled back to Dallas on a bus, and after they arrived, Jane Doe #1 began facilitating Jane Doe #2’s engaging in commercial sex acts. They took provocative photos of her and posted her ad on Backpage.com. Jane Doe #1, at Douglas’s direction, contacted certain customers to see if they wanted to pay to have sex with Jane Doe #2. Jane Doe #1 rode in the car with Jane Doe #2 to her commercial sex transactions, but she did not go into the room where they occurred. Jane Doe #2 gave all of the money she earned to Douglas.
Ultimately, in late December 2013, Jane Doe #2 told Douglas she wanted to go home for the Christmas holidays, and he allowed her to leave.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Cara Foos Pierce is prosecuting.