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3 February 2015
Kearny County Man Indicted on Federal Child Porn ChargesRead the Press Release
WICHITA, KAN. – A Kearny County man was indicted Tuesday on federal child pornography charges, U.S. Attorney Barry Grissom said.
Mark A. Wireman, 44, Lakin, Kan., was charged with five counts of distributing child pornography and one count of possessing child pornography.
According to court records, the investigation began in October 2014 when Google made a report to the National Center for Missing & Exploited Children’s (NCMEC) CyberTipline. The report was about a file containing child porn that had been uploaded on a Google email server. Investigators followed an electronic trail to Wireman, who was a previously convicted sex offender.
Wireman allegedly was exchanging emails containing child pornography with a man who he met in prison. The emails included photos of young children including toddlers in sexual situations. In one of Wireman’s emails, he urged the other man to take pornographic photos of a child to whom the man had access.
If convicted, Wireman faces a penalty of not less than 15 years and not more than 40 years on the distribution charge and not less than 10 years and not more than 20 years on the possession charge. Homeland Security investigations, the Wichita Police Department’s Exploited and Missing Child Unit and the Internet Crimes Against Children Task Force investigated. Assistant U.S. Attorney Jason Hart is prosecuting
OTHER INDICTMENTS
Jeffrey L. Becklund, 56, Bellflower, Calif., is charged with one count of possession with intent to distribute methamphetamine and one count of interstate travel in furtherance of drug trafficking. The crimes are alleged to have occurred Jan. 24, 2015, in Thomas County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the possession charge, and a maximum penalty of five years and a fine up to $250,000 on the interstate travel charge. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Israel Guevara-Garcia, 36, and Walter Calderon, 35, Freemont, Neb., are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred March 31, 2014, in Sedgwick County, Kan.
If convicted, they face a penalty of not less than five years and not more than 40 years and a fine up to $5 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Luis Arturo Garcia Gomez, 37, Phoenix, Ariz., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Jan. 28, 2015, in Wichita, Kan.
If convicted he faces a maximum penalty of 40 years and a fine up to $2 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Juan F. Morales, 62, Garden City, Kan., Victor Linares, 57, Lamar, Colo., and Filiberto Escobedo-Colon, 54, Garden City, Kan., are charged with one count of conspiracy to distribute methamphetamine, five counts of using a telephone in furtherance of drug trafficking, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute cocaine, and one count of interstate travel in furtherance of drug trafficking. The crimes are alleged to have occurred in December 2014 in Kearny County, Kan.
Upon conviction, the crimes carry the following penalties:
Conspiracy: Not less than 10 years in federal prison and a fine up to $10 million.
Using a telephone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $250,000 on each count.
Possession with intent to distribute methamphetamine: Not less than 10 years and a fine up to $10 million.
Possession with intent to distribute cocaine: A maximum penalty of 20 years and fine up to $1 million.
Interstate travel in furtherance of drug trafficking: A maximum penalty of five years and a fine up to $250,000.
The Finney County Sheriff’s Office, the Garden City Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Justin John Michael Cook, 32, Hutchinson, Kan., is charged one count of unlawful possession of a firearm after a felony conviction, and one count of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred Dec. 17, 2014, in Sterling, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Sterling Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Nathaniel S. McGrew, 39, Daytona, Ky., is charged with one count of possession with intent to distribute marijuana and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Oct. 30, 2014, in Logan County, Kan.
If convicted, he faces a maximum penalty of 20 years and a fine up to $1 million on the marijuana charge, and a penalty of not less than five years and a fine up to $250,000 on the firearm charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney David Lind is prosecuting.
Tremain Vaughn Scott, 33, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 21, 2015, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Topeka Police Department, the U.S. Marshals Service and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Dean L. Johns, 49, Abilene, Kan., is charged with one count of wire fraud in connection with fraudulent unemployment benefit claims totaling $11,856. The crime is alleged to have occurred from March 2, 2013, to Aug. 24, 2013.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Department of Labor investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Alfredo Huerta-Guerrero, 37, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Dec. 12, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Justice Department and State Partners Secure $1.375 Billion Settlement with S&P for Defrauding Investors in the Lead up to the Financial CrisisRead the Press Release
Attorney General Eric Holder announced today that the Department of Justice and 19 states and the District of Columbia have entered into a $1.375 billion settlement agreement with the rating agency Standard & Poor’s Financial Services LLC, along with its parent corporation McGraw Hill Financial Inc., to resolve allegations that S&P had engaged in a scheme to defraud investors in structured financial products known as Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDOs). The agreement resolves the department’s 2013 lawsuit against S&P, along with the suits of 19 states and the District of Columbia. Each of the lawsuits allege that investors incurred substantial losses on RMBS and CDOs for which S&P issued inflated ratings that misrepresented the securities’ true credit risks. Other allegations assert that S&P falsely represented that its ratings were objective, independent and uninfluenced by S&P’s business relationships with the investment banks that issued the securities.
The settlement announced today is comprised of several elements. In addition to the payment of $1.375 billion, S&P has acknowledged conduct associated with its ratings of RMBS and CDOs during 2004 to 2007 in an agreed statement of facts. It has further agreed to formally retract an allegation that the United States’ lawsuit was filed in retaliation for the defendant’s decisions with regard to the credit of the United States. Finally, S&P has agreed to comply with the consumer protection statutes of each of the settling states and the District of Columbia, and to respond, in good faith, to requests from any of the states and the District of Columbia for information or material concerning any possible violation of those laws.
“On more than one occasion, the company’s leadership ignored senior analysts who warned that the company had given top ratings to financial products that were failing to perform as advertised,” said Attorney General Holder. “As S&P admits under this settlement, company executives complained that the company declined to downgrade underperforming assets because it was worried that doing so would hurt the company’s business. While this strategy may have helped S&P avoid disappointing its clients, it did major harm to the larger economy, contributing to the worst financial crisis since the Great Depression.”
Attorney General Holder was joined in announcing the settlement with Acting Associate Attorney General Stuart F. Delery, Acting Assistant Attorney General for the Civil Division Joyce R. Branda and Acting U.S. Attorney for the Central District of California Stephanie Yonekura. Also joining the Department of Justice in making this announcement are the attorneys general from Arizona, Arkansas, California, Connecticut, Colorado, Delaware, Idaho, Illinois, Indiana, Iowa, Maine, Mississippi, Missouri, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Washington and the District of Columbia.
“This resolution provides further proof that the Department of Justice will vigorously pursue investigations and litigation, no matter how challenging, to protect the best interests of the American people,” said Acting Associate Attorney General Delery. “As part of the resolution, S&P admitted facts demonstrating that it misrepresented itself to investors and the public, allowing the pursuit of profits to bias its ratings. S&P also agreed to retract its unsubstantiated claim that this lawsuit was initiated in retaliation for the decisions S&P made about the credit rating of the U.S. government. Today's announcement is the latest result of our dedicated effort to address misconduct of every kind that contributed to the financial crisis.”
“Today’s historic settlement demonstrates that we will use all of our resources and every legal tool available to hold accountable those who commit financial fraud,” said Acting Assistant Attorney General Branda. “Thanks to the tireless efforts of our team in Washington and California, S&P has not only paid a record-setting penalty, but has now admitted to the American people facts that make clear its own unlawful role in the financial crisis.”
Half of the $1.375 billion payment – or $687.5 million – constitutes a penalty to be paid to the federal government and is the largest penalty of its type ever paid by a ratings agency. The remaining $687.5 million will be divided among the 19 states and the District of Columbia. The allocation among the states and the District of Columbia reflects an agreement between the states on the distribution of that money.
In its agreed statement of facts, S&P admits that its decisions on its rating models were affected by business concerns, and that, with an eye to business concerns, S&P maintained and continued to issue positive ratings on securities despite a growing awareness of quality problems with those securities. S&P acknowledges that:
- S&P promised investors at all relevant times that its ratings must be independent and objective and must not be affected by any existing or potential business relationship;
- S&P executives have admitted, despite its representations, that decisions about the testing and rollout of updates to S&P’s model for rating CDOs were made, at least in part, based on the effect that any update would have on S&P’s business relationship with issuers;
- Relevant people within S&P knew in 2007 many loans in RMBS transactions S&P were rating were delinquent and that losses were probable;
- S&P representatives continued to issue and confirm positive ratings without adjustments to reflect the negative rating actions that it expected would come.
In addition, S&P acknowledges that the voluminous discovery provided to S&P by the United States in the litigation does not support their allegation that the United States’ complaint was filed in retaliation for S&P’s 2011 decisions on the credit rating of the United States. S&P will formally retract that claim in the litigation.
“S&P played a central role in the crisis that devastated our economy by giving AAA ratings to mortgage-backed securities that turned out to be little better than junk,” said Acting U.S. Attorney Yonekura. “Driven by a desire to increase profits and market share, S&P blessed innumerable securitizations that were used by aggressive lenders to offload the risks of billions of dollars in mortgage loans given to homeowners who had no ability to pay them off. This conduct fueled the meltdown that ultimately led to tens of thousands of foreclosures in my district alone. This historic settlement makes clear the consequences of putting corporate profits over honesty in the financial markets.”
Today’s settlement was announced in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes, enhancing coordination and cooperation among federal, state and local authorities, addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
- S&P promised investors at all relevant times that its ratings must be independent and objective and must not be affected by any existing or potential business relationship;
Justice Department Seeks to Shut Down Maryland Tax Return PreparerRead the Press Release
The Justice Department announced today that it has asked a federal court in Greenbelt, Maryland, to permanently bar a Silver Spring, Maryland, tax preparer, doing business as Eplanet, Eplanet LLP, Eplanet Corp., and Eplanete Corp., from preparing tax returns for others.
The government also filed a motion for a preliminary injunction seeking to prevent Komi Gbotcho from filing any returns for the 2014 tax year.
According to the complaint, the Internal Revenue Service (IRS) estimates that Gbotcho, through Eplanet, has prepared more than 1,300 tax returns for the 2010 through 2013 tax years. The suit alleges that Gbotcho prepared returns claiming false or inflated deductions, such as deductions for personal property rental expenses, unreimbursed employee business expenses and home improvement expenses, without some customers’ knowledge. The suit contends that the false and inflated deductions generated larger refunds for Gbotcho’s customers than they were entitled to receive, and that the losses to the U.S. Treasury could amount to as much as $3.4 million.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Reaches Settlements with Four Cities Across the Country to Remove Disability-Related Questions from Job Applications and Ensure Web AccessibilityRead the Press Release
The Justice Department announced today that it has reached settlement agreements with the cities of DeKalb, Illinois; Vero Beach, Florida; Fallon, Nevada; and Isle of Palms, South Carolina. The agreements resolve investigations of each city under Title I of the Americans with Disabilities Act (ADA). The investigations found that each city’s online employment application asked questions about disabilities in violation of the ADA. The ADA does not permit employers to inquire as to whether an applicant is an individual with a disability or as to the nature of such disability before making a conditional offer of employment. Under Section 503 of the Rehabilitation Act of 1973, however, federal contractors subject to affirmative action requirements may invite an applicant voluntarily to self-identify as an individual with a disability, consistent with certain requirements.
The investigations also found that each city’s online employment opportunities website or job applications were not fully accessible to people with disabilities, such as those who are blind or have low vision, are deaf or hard of hearing, or have physical disabilities affecting manual dexterity (such as limited ability to use a mouse). In recent months, the department reached similar settlement agreements with the city of Hubbard, Oregon, and Florida State University.
“Congress intended for people with disabilities to be able to compete for jobs on a level playing field,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Including disability-based questions on a job application is illegal and creates barriers for people with disabilities. These agreements ensure that people with disabilities will have an equal chance to compete for public sector jobs. We commend each city for its cooperation and efforts to ensure accessibility and fairness in the job application process.”
Under the settlement agreements, each city agrees to ensure that its hiring policies and procedures do not discriminate against any applicant on the basis of disability, including by:
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not conducting a medical examination or making a disability-related inquiry of a job applicant before a conditional offer of employment is made;
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not requiring a medical examination or making inquiries of an employee as to whether such employee is an individual with a disability or as to the nature or severity of the disability, unless such examination or inquiry is shown to be job-related and consistent with business necessity;
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maintaining the medical or disability-related information of applicants and employees in separate, confidential medical files;
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training employees who make hiring or personnel decisions on the requirements of the ADA, designating an individual to address ADA compliance matters, and reporting on compliance; and
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ensuring that its online employment opportunities website and job applications conform with the Web Content Accessibility Guidelines 2.0, which are industry guidelines for making web content accessible.
Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
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James Nastri Sentenced to 210 Months Imprisonment for Conspiracy to Distribute HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on January 30, 2015, James Nastri, 34, of Deep River, Connecticut, was sentenced to 210 months in prison, having been convicted of conspiracy to distribute at least 100 grams of heroin. On June 2, 2014, following a five-day trial before United States District Judge William K. Sessions III, a Burlington jury convicted Nastri of that offense. At sentencing, Judge Sessions also gave Nastri 8 years of supervised release.
Court records show that Nastri headed a conspiracy that sold large volumes of heroin and other drugs in the Burlington area and in Bangor, Maine in 2011 and 2012. A Burlington grand jury indicted Nastri in April 2013. He has been in custody since indictment. Court records further show that Nastri=s group distributed an especially strong form of heroin in Burlington, known as AChi town@ or AChi,@ short for Chicago, which has caused several overdoses in the last several years. The Vermont State Police Drug Task Force began an investigation into Nastri=s heroin ring in December 2011.
On March 14, 2012, a Vermont State Police trooper stopped Nastri=s vehicle and seized about $17,000 in drug proceeds. Following that seizure, Nastri transferred his drug business entirely to Maine, and continued to sell opiates there until August of 2012, when two of his workers were murdered by rival drug dealers, Nicholas Sexton and Randall Daluz. Last year, a Bangor, Maine jury convicted Daluz and Sexton of murder.
For his crime, Nastri faced a maximum penalty of life in prison with a ten-year-mandatory minimum. At sentencing, Judge Sessions remarked Nastri=s drug conspiracy was one of the most serious he had ever seen. He further noted that Nastri financed and managed a sophisticated multi-state drug operation. Judge Sessions also cited Nastri=s significant criminal history. Nastri led the conspiracy while on supervised release for a 2006 federal conviction for importation of marijuana. Nastri is expected to be sentenced in the near future in federal court in Connecticut for the supervised release violation.
The investigation was a collaborative effort of the Vermont State Police Drug Task Force; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, and Firearms; the Essex, South Burlington, and Burlington, Vermont Police Departments; and the Lowell, Massachusetts Police Department.
Assistant United States Attorneys Christina Nolan and Timothy Doherty prosecuted the case. Nastri is represented by Edgar L. Fankbonner, Esq., of New York City.
Jamaican Charged with Illegally Re-entering U.S.Read the Press Release
JOHNSTOWN, Pa. - A citizen of Jamaica has been indicted by a federal grand jury in Johnstown on a charge of re-entry of an illegal alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Hubert E. Minott, 31, of North Miami Beach, Fla.
According to the indictment presented to the court, on Feb. 6, 2014, Minott, an alien who had been deported from the United States on June 12, 2008, was found in Somerset County, Pa. He had unlawfully re-entered this country without receiving permission from the Secretary of the Department of Homeland Security to do so.
The law provides for a maximum total sentence of 20 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 of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement 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.
Investment Advisor SentencedRead the Press Release
COEUR D'ALENE B JoAnn Jackson, 63, of Coeur d'Alene, Idaho, was sentenced today to 30 months in prison for wire fraud, U.S. Attorney Wendy J. Olson announced. U. S. District Judge Edward J. Lodge also ordered Jackson to serve three years of supervised release, to pay $811,084.32 in restitution and to serve 200 hours of community service. Jackson pleaded guilty on November 20, 2014.
According to the plea agreement, Jackson admitted that in 1994, she became a licensed stock broker in Idaho. Early in her career, Jackson came into contact with a victim, who eventually put all of her investment accounts under Jackson’s care. Jackson developed a scheme to misappropriate the victim’s money by transferring the funds from the victim’s account into other accounts, eventually obtaining the benefit of the money stolen. Jackson was remanded into federal custody immediately following the sentencing.
The case was investigated by Federal Bureau of Investigation (FBI).
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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.
Indianapolis man sentenced to four years for stealing donations intended for local veteransRead the Press Release
Over $1 million collected at local retail outlets with only a fraction received by vets.
PRESS RELEASE
INDIANAPOLIS -Josh J. Minkler, Acting United States Attorney, announced today the sentence of an Indianapolis man for his role in stealing hundreds of thousands of dollars intended for use by local veterans. Scott M. Gruber 40, was sentenced to four years in federal prison by U.S. District Judge Sarah Evans Barker after being convicted of two counts of mail fraud and one count of structuring to evade reporting requirements.
“Our veterans have made enormous sacrifices to keep us all safe and to steal money intended for their use is unthinkable,” said Minkler. “Besides being illegal, these actions are unpatriotic and will not be tolerated.”
Gruber established two professional fundraising organizations, Independent Promotions and Reliant Event Management to solicit funds for local veteran’s charities. He hired individuals to falsely represent themselves as volunteers and often as veterans to solicit funds from patrons outside local retail outlets and Monument Circle. The solicitors were schooled to tell patrons that 100% of the proceeds went to charities that support veterans. In fact, very little of the money ever made it to the intended veterans.
Gruber and his associates traveled to universities and colleges, as far away as Florida to solicit. Gruber personally instructed his solicitors to falsely represent that they were college students competing for scholarships by soliciting for veteran’s charities. The solicitors would tell prospective contributors that they were volunteers and any amount collected would be matched as a scholarship to them. In reality, the solicitors were paid by Gruber, 40 % of each solicitor’s take.
From 2010 until 2012 Gruber and his associates collected over $550,000 for the Purple Hearts Veterans Foundation (PHVF) and $575,000 for Service Connected Disabled Veterans of America (SDVA). Only eight percent of the funds from PHVF ever made it to the veteran’s charity and less than one percent ($4500) of the money raised for SDVA made it to any veteran. In total, Gruber raised over $1,045,651, very little of which made it the various charities.
This investigation was conducted by the Internal Revenue Service, Criminal Investigation Division, and the Indiana State Police.
According to Assistant United States Attorney James M. Warden, who prosecuted the case for the government, there were two sets of victims in the case; the contributors and the veterans the money was intended to support. Gruber must pay $365,750 in restitution, payable to the American Red Cross and serve three years of supervised release after his sentence at the U.S. Bureau of Prisons.
Hunt County Man Admits Producing Child PornographyRead the Press Release
DALLAS — A 31-year-old Hunt County man appeared this morning in federal court, before U.S. Magistrate Judge Paul D. Stickney, and pleaded guilty to two counts of production of child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Stephen Walker, most recently of Quinlan, Texas, faces a statutory penalty of not less than 15 years, and not more than 30 years in federal prison, a $250,000 fine and up to a lifetime of supervised release, on each count. He remains in custody. Sentencing is set for May 21, 2015, before U.S. District Judge Jane J. Boyle.
According to documents filed in the case, in September 2006, Walker enticed Jane Doe #2, a seven-year-old female child, to engage in sexually explicit conduct that he photographed.
Then, in November 2010, Walker enticed Jane Doe #1, a three-year-old female child, to engage in sexually explicit conduct that he video-recorded.
The investigation began in November 2014 when a memory card, containing images of child pornography, was turned in to the Marion County Sheriff’s Office. That memory card had been found at a deer lease in a hunting club in Marion County; the deer lease had been used by Walker.
A search warrant of the memory card revealed it contained multiple sexually explicit videos of prepubescent child pornography taken at a Walker’s previous residence in Rowlett.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Rowlett Police Department investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Homeowner Sentenced to 4 Years in Prison in Scheme to Burn Down House to Collect InsuranceRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Saleh H. Fakhoury, age 49, formerly of Lutherville, Maryland, today to four years in prison, followed by nine months of home detention as part of three years of supervised release, for his participation in a scheme to destroy his Maryland home by fire to collect $3 million in insurance proceeds. Judge Bennett also ordered Fakhoury to pay restitution of more than $800,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement and court documents, Fakhoury owned a home in Lutherville Maryland and in 2007, bought a second home in Florida. By March 2009, Fakhoury owed over $200,000 to credit card companies, utilities and other service providers, as well as over $1.7 million to banks for the mortgages on the properties he owned.
Co-conspirator Hammoud worked for Fakhoury at Alfeo’s, a pizza restaurant owned by Fakhoury. Fakhoury and Hammoud schemed to destroy Fakhoury’s home in Lutherville by arson. Fakhoury intended to collect the insurance and pay off his debts. Fakhoury agreed to pay $70,000 to have his home set on fire: $20,000 to be initially paid to Hammoud; and later when the insurance money was received, $50,000 to be paid to others that Hammoud hired to set the fire.
On March 12 or 13, 2009, a fire was deliberately set at the Lutherville home. The fire self-extinguished and minimal damage was sustained. On March 14, 2009, a second fire was deliberately set using paint thinner. The home was completely destroyed. Fakhoury paid Hammoud the agreed upon $20,000 to have the house set on fire.
In September 2009, Fakhoury executed a sworn proof of loss to collect $3,155,197 in insurance. The loss statement was false, in that it claimed items were destroyed or damaged in the fire when, in fact, the items were not consumed in the fire, and the fire was intentionally set. The insurance company denied the claim, but paid $828,773 to the mortgagor of the Maryland home.
On December 2, 2011, Fakhoury filed a civil action against the insurance company in an effort to recover monies under the insurance policy, and claim over $3 million in compensatory damages. As part of his plea agreement, Fakhoury has agreed to dismiss the lawsuit.
Hassan Hammoud, age 60, of Dundalk, Maryland pleaded guilty to his participation in the conspiracy and was sentenced to 63 months in prison, and ordered to pay restitution of $828,773.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore County Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Judson T. Mihok, who prosecuted the case.
Home Health Agency Owner Sentenced to 10 Years in Prison for Role in Miami Health Care Fraud SchemeRead the Press Release
Patient Recruiter Sentenced To Two Years In Prison For Participating In The Same Scheme
A South Florida man was sentenced to 10 years in prison today in connection with a long-running $6.2 million Medicare fraud scheme involving Professional Medical Home Health LLC (Professional Home Health), a Miami home health care agency that purported to provide home health and therapy services, as well as similar schemes at two additional Miami home health care agencies. A second defendant was also sentenced to two years in prison today for his role as a patient recruiter in the fraud scheme at Professional Home Health.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement. Chief U.S. District Judge K. Michael Moore of the Southern District of Florida imposed the sentence.
Ernesto Fernandez, 48, of Miami, pleaded guilty on Nov. 26, 2014, to one count of conspiracy to commit health care fraud. In addition to the 10-year prison sentence, Fernandez was also ordered to pay $2,163,057 in restitution and to forfeit $9,061,867, which represents the proceeds traceable to his criminal conduct at all three home health agencies. Fernandez has been in custody since his bond was revoked on Jan. 30, 2015, for violating the condition of his bond prohibiting contact with victims or witnesses in the case except through counsel.
According to documents filed with his plea agreement, Fernandez was an owner and operator of Professional Home Heath. He was also the owner and operator of two other South Florida home health agencies. At each of these companies, Fernandez and his co-conspirators billed the Medicare program for expensive physical therapy and home health services that were not medically necessary or were not provided. Fernandez admitted that he caused patient documentation to be falsified, and planned, organized and oversaw the submission of fraudulent claims to the Medicare program.
Fernandez also admitted to being a patient recruiter for all three home health agencies. In that capacity, Fernandez recruited patients for the agencies in exchange for kickbacks, knowing that the agencies would bill the Medicare program on behalf of the recruited patients for expensive home health and therapy services that were not medically necessary or not provided.
Juan Valdes, 37, of Palm Springs, pleaded guilty on Nov. 10, 2014, to one count of conspiracy to defraud the United States and receive health care kickbacks. In addition to the two-year prison sentence, Valdes was also ordered to pay 204,526 in restitution.
According to documents filed with his plea agreement, Valdes was a patient recruiter for Professional Home Health. In that role, he solicited kickbacks and bribes from the owners and operators of Professional Home Health in exchange for providing beneficiaries to allow Professional Home Health to bill Medicare for home health services that were not medically necessary or not provided.
Fernandez and Valdes are the seventh and eighth defendants to be sentenced in connection with the fraudulent schemes at Professional Home Health. Dennis Hernandez and Jose Alvarez, both owners and operators of Professional Home Health, were each sentenced to 10 years in prison on Jan. 29, 2015. Joel San Pedro, a manager and supervisor of Professional Home Health, was sentenced to 97 months in prison on Jan. 29, 2015. Annarella Garcia, an owner of Professional Home Health, was sentenced to 70 months in prison on Aug. 27, 2014. Annilet Dominguez, an administrator of Professional Home Health, was sentenced to 68 months in prison on Sept. 29, 2014. Alina Hernandez, a patient recruiter for Professional Home Health, was sentenced to two years in prison on Jan. 29, 2015.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Heroin Trafficker Sentenced to 4 Years in Federal Prison; Forfeits $382,227 and A $39,000 Rolex Watch Gained from the Sale of HeroinRead the Press Release
PROVIDENCE, R.I. – Neftali Reyes, a/k/a Popi, 32, of Providence, was sentenced today to 48 months in federal prison for trafficking heroin, announced by United States Attorney Peter F. Neronha and Michael Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) New England Field Division.
Additionally, Reyes forfeited $382,227 dollars in cash and a Rolex watch valued at $39,000 seized by the government at the time of Reyes’ arrest in August 2014. An investigation by the Rhode Island DEA Drug Task Force determined that the proceeds were generated as a result of Reyes’ drug trafficking activities.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Reyes to serve 3 years supervised release upon completion of his prison term. Reyes pleaded guilty on November 13, 2014, to one count of conspiracy to distribute heroin and two counts of distribution of heroin.According to court documents and information presented to the court, beginning in April 2014, the DEA Drug Task Force conducted an investigation of the activities into a drug trafficking organization which included Neftali Reyes and others. On at least two occasions in July 2014, an East Providence undercover police officer arranged with Reyes to purchase heroin. On each occasion a different “runner” met with the undercover officer at pre-determined locations in Providence and Cranston to complete the transactions.
On August 25, 2014, law enforcement arrested Reyes as he left his residence and was entering a parking garage. As Reyes was being detained, he dropped a shoebox containing $37,000 in cash, a cell phone and an iPad. A court authorized search of Reyes’ residence resulted in the seizure of $339,477 in cash from a safe, additional cash located elsewhere in the residence, and a men’s Rolex Oyster watch valued at $39,000. Reyes admitted to law enforcement and to the court that the cash and the Rolex watch were the result of proceeds from the sale of heroin. Reyes admitted to selling heroin for $130 per gram and that the proceeds represented the sale of approximately 2,940 grams of heroin.
The case was prosecuted by Assistant U.S. Attorney Pamela E. Chin.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Hackett Man Sentenced to 75 Months in Prison for Child Pornography OffenseRead the Press Release
Fort Smith - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Raymond Freitas, age 42, of Hackett, was sentenced today to 75 months in prison followed by seven years of supervised release for Receipt of Child Pornography. The sentencing took place before the Honorable P. K. Holmes, III in the United States District Court in Fort Smith.
U. S. Attorney Eldridge commented, “We will not rest in our efforts to identify, investigate, and prosecute those who commit these despicable crimes against our children. Every time a video or image involving sexual abuse of children is downloaded or viewed, those children are re-victimized. We appreciate the hard work of law enforcement to bring these sexual predators to justice.”
“Criminals who prey on our children remain a top priority for HSI and our law enforcement partners. This predator will be locked away from society thanks to the collaborative efforts of HSI and our law enforcement partners at the Sebastian County Sheriff's Office and the Hackett Police Department,” said Raymond R. Parmer, Jr. special agent in charge of HSI New Orleans.
According to court records, in May 2014, agents with Homeland Security Investigations identified a computer that was being used to download suspected child pornography via the internet. A subsequent investigation revealed that the subscriber information for that computer returned to Freitas whose residence is in Hackett. Agents obtained and executed a search warrant on the residence where they seized a computer and several DVD’s. Freitas admitted at that time to downloading images and videos of child pornography on several different occasions. A subsequent forensic examination of the confiscated items revealed numerous images and videos of child pornography. On September 29, 2014, Freitas pleaded guilty in Federal Court to receiving child pornography.
This case was investigated by Homeland Security Investigations. Assistant United States Attorney Kyra Jenner prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (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.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Fort Smith Man Sentenced to Seven Years in Prison for Distribution of MethamphetamineRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Randal Jernigan, age 31, of Fort Smith, Arkansas, was sentenced today on one count of Distribution of Methamphetamine. Jernigan was sentenced to 84 months in prison followed by three years of supervised release. United States District Court Judge P. K. Holmes, III presided over the sentencing in the United States District Court in Fort Smith.
United States Attorney Eldridge commented, “The trafficking and distribution of illegal drugs represents a tremendous problem in our communities, bringing crime and violence onto our streets, and exposing our children to serious risks. Today’s sentence shows that our office, joined by federal, state, and local law enforcement agencies, remains committed to aggressively pursuing and shutting down illegal drug trafficking in Fort Smith and across the Western District of Arkansas.”
According to court records, on April 30, 2014, a confidential informant working with the Drug Enforcement Administration (DEA) met with Randal Jernigan at a local business in Fort Smith to discuss arrangements for a drug deal later that day. During their meeting, Jernigan agreed to meet with the confidential informant at a local Fort Smith residence to conduct the drug deal. Later that day, the confidential informant met with Jernigan at the agreed upon local residence, where Jernigan provided approximately one ounce of methamphetamine in exchange for $1,000.00. The methamphetamine was then sent to the DEA Crime Laboratory, which determined the substance provided by Jernigan contained 27.5 grams of actual methamphetamine. Jernigan pleaded guilty to one count of Distribution of Methamphetamine on September 30, 2014.
This case was investigated by the Drug Enforcement Administration, the Fort Smith Police Department, and the Sebastian County Sheriff’s Office. Assistant United States Attorney Clay Fowlkes 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
Fort Peck Man Sentenced to 14 Years for Stomping DeathRead the Press Release
GREAT FALLS—A 42-year-old Wolf Point man was sentenced today to 14 years in federal prison for stomping and beating a man so violently that the man died two days later. Great Falls United States District Court Judge Brian Morris sentenced Mervin Hale, Jr., to 168 months in prison, followed by a term of 4 years supervised release. Hale previously pleaded guilty to second degree murder.
Assistant U.S. Attorney Laura Weiss told the court that Hale and another man had been on a drinking binge in the days prior to the beating. During the late night hours of March 18, 2014, Hale and the man went to the victim’s home where the victim lived with his girlfriend. The investigation revealed that the victim had been sleeping in the bedroom when Hale called him out to the living room. Hale was agitated and pacing around before he started beating and stomping on the victim. The victim died two days later from significant traumatic internal injuries.
Because there is no parole in the federal system, Hale will have to serve at least 85% of his sentence before he is released from prison. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law & Justice. Assistant United States Attorneys Laura Weiss and Lori Suek prosecuted the case.
Former Supervisory Contracting Officer Arrested in Navy Bribery ScandalRead the Press Release
A former senior federal contracting officer was arrested this morning for conspiracy to commit bribery in connection with his alleged role in a scheme to steer contracts and benefits to Glenn Defense Marine Asia (GDMA), a defense contracting firm headquartered in Singapore.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) and Deputy Inspector General of Investigations James B. Burch of the Department of Defense (DCIS) made the announcement.
“Today’s arrest in this ongoing investigation demonstrates our continued resolve to root out all of the corrupt officials involved in this bribery scheme,” said Assistant Attorney General Caldwell. “As alleged, Paul Simpkins misused his position as a contracting officer at the U.S. Navy to obtain bribes of cash, air travel, hotel rooms, and prostitutes, and his actions tarnish the reputation earned by the vast majority of U.S. Navy officers and enlisted and civilian personnel.”
“With the arrest of Paul Simpkins, who was recently among the Defense Department’s high ranking civilians we have uncovered yet another tentacle of this pervasive bribery scheme,” said U.S. Attorney Duffy. “The more we learn about the extent of the greed and corruption, the more determined we are to eviscerate it.”
“As we've mentioned previously, the GDMA investigation is far from over,” said Director Traver. “NCIS will follow the evidence wherever it leads, to bring to justice those who were involved in perpetrating this massive fraud on the Department of the Navy and the American taxpayer. Active leads remain and NCIS will stay on the case until our work is done.”
“As the filing of today's Criminal Complaint and subsequent arrest of Paul Simpkins shows, the Defense Criminal Investigative Service and its law enforcement partners will continue to identify and investigate those individuals who seek to defraud the U.S. taxpayer," said Deputy Inspector General of Investigations Burch. “Any individual, regardless of position, who allowed Glenn Defense Marine Asia Ltd. to prosper at the expense of the American taxpayer, will be brought to justice.”
Paul Simpkins, 60, of Haymarket, Virginia, is the latest individual to be arrested in connection with a corruption probe involving the U.S. Navy, GDMA, and its owner, Leonard Glenn Francis. At this morning’s hearing, United States Magistrate Judge Jones of the Eastern District of Virginia ordered Simpkins to be detained pending a bond hearing set for Feb. 4, 2015. To date, seven individuals, including Francis, and GDMA have entered guilty pleas as part of the investigation.
According to a criminal complaint unsealed today, Simpkins held several manager-level contracting positions throughout the federal government, including Supervisory Contract Special at the U.S. Navy Regional Contracting Center in Singapore from April 2005 through June 2007, and manager in the Department of Defense’s Office of Small Business Programs from December 2007 to August 2012. The complaint alleges that between May 2006 and September 2012, Simpkins accepted several hundred thousand dollars in cash and wire transfers, travel and entertainment expenses, hotel rooms and the services of prostitutes. In return, Simpkins allegedly helped steer lucrative U.S. Navy contracts to Francis and GDMA, advocated for and advanced the interests of GDMA in contract disputes, and assisted in preventing GDMA’s competitors from receiving U.S. Navy business.
The complaint specifically alleges that, beginning in early 2006, Simpkins and Francis held a series of meetings at a hotel in Singapore in which Francis agreed to provide Simpkins with things of value in return for help in steering lucrative ship husbanding contracts to GDMA. Specifically, the complaint alleges that Francis paid Simpkins by hand-delivering over $150,000 in cash and by making several wire transfers to a bank account held in the name of Simpkins’s wife at the time. To conceal the true nature of the wire transfers, Simpkins allegedly used an email account belonging to his mistress to advise Francis of the routing and account information of the bank account belonging to his wife.
In return for the things of value, Simpkins allegedly used his influence within the U.S. Navy to benefit GDMA, including by helping GDMA to secure lucrative ship husbanding contracts to service U.S. Navy vessels in Thailand and the Philippines. In addition, Simpkins allegedly interceded on GDMA’s behalf in contract disputes with the U.S. Navy. The complaint specifically alleges that in 2006, Simpkins’s subordinate recommended that GDMA’s husbanding contract in Thailand not be extended due to “many exceedingly high cost” items. Simpkins allegedly overruled his subordinate and extended GDMA’s contract.
In another example, Simpkins allegedly instructed U.S. Navy officials in Hong Kong to discontinue the use of meters that monitored the volume of liquid waste that GDMA removed from U.S. Navy ships under its husbanding contracts. The use of these meters would have ensured proper accounting of the actual amount of waste removed to ensure that no overbilling occurred. Simpkins also allegedly instructed a U.S. Navy official not to review invoices that GDMA submitted in connection to a recent port call in Hong Kong after Francis complained that U.S. Navy personnel were asking questions.
The charges contained in a complaint are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The ongoing investigation is being conducted by NCIS and DCIS.The case is being prosecuted by Director of Procurement Fraud Catherine Votaw and Senior Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Robert S. Huie of the Southern District of California.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Former Supervisory Contracting Officer Arrested in Navy Bribery ScandalRead the Press Release
SAN DIEGO – Paul Simpkins, a former senior federal contracting officer for the U.S. Navy, was arrested this morning and charged with conspiracy to commit bribery in connection with his alleged role in a scheme to steer contracts and benefits to Glenn Defense Marine Asia (GDMA), a defense contracting firm headquartered in Singapore.
Simpkins, 60, was arrested this morning in Haymarket, Virginia. He was arraigned in federal court in the Eastern District of Virginia and is scheduled for a detention hearing tomorrow at 2 p.m. Eastern time before U.S. Magistrate Judge Rawles Jones. The government is seeking Simpkins’ removal to face charges in the Southern District of California.
“With the arrest of Paul Simpkins, who was recently among the Defense Department’s high ranking civilians we have uncovered yet another tentacle of this pervasive bribery scheme,” said U.S. Attorney Duffy. “The more we learn about the extent of the greed and corruption, the more determined we are to eviscerate it.”
“Today’s arrest in this ongoing investigation demonstrates our continued resolve to root out all of the corrupt officials involved in this bribery scheme,” said Assistant Attorney General Leslie R. Caldwell. “As alleged, Paul Simpkins misused his position as a contracting officer at the U.S. Navy to obtain bribes of cash, air travel, hotel rooms, and prostitutes, and his actions tarnish the reputation earned by the vast majority of U.S. Navy officers and enlisted and civilian personnel.”
“As we've mentioned previously, the GDMA investigation is far from over,” said Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS). “NCIS will follow the evidence wherever it leads, to bring to justice those who were involved in perpetrating this massive fraud on the Department of the Navy and the American taxpayer. Active leads remain and NCIS will stay on the case until our work is done.”
“As the filing of today's Criminal Complaint and subsequent arrest of Paul Simpkins shows, the Defense Criminal Investigative Service and its law enforcement partners will continue to identify and investigate those individuals who seek to defraud the U.S. taxpayer,” said Deputy Inspector General of Investigations James B. Burch of the Department of Defense (DCIS). “Any individual, regardless of position, who allowed Glenn Defense Marine Asia Ltd. to prosper at the expense of the American taxpayer, will be brought to justice.”
Simpkins is the latest individual to be arrested in connection with a corruption probe involving the U.S. Navy, GDMA, and its owner, Leonard Glenn Francis. To date, seven individuals, including Francis, and GDMA have entered guilty pleas as part of the investigation.
According to a criminal complaint unsealed today, Simpkins held several manager-level contracting positions throughout the federal government, including Supervisory Contract Special at the U.S. Navy Regional Contracting Center in Singapore from April 2005 through June 2007, and manager in the Department of Defense’s Office of Small Business Programs from December 2007 to August 2012. The complaint alleges that between May 2006 and September 2012, Simpkins accepted several hundred thousand dollars in cash and wire transfers, travel and entertainment expenses, hotel rooms and the services of prostitutes. In return, Simpkins allegedly helped steer lucrative U.S. Navy contracts to Francis and GDMA, advocated for and advanced the interests of GDMA in contract disputes, and assisted in preventing GDMA’s competitors from receiving U.S. Navy business.
The complaint specifically alleges that, beginning in early 2006, Simpkins and Francis held a series of meetings at a hotel in Singapore in which Francis agreed to provide Simpkins with things of value in return for help in steering lucrative ship husbanding contracts to GDMA. Specifically, the complaint alleges that Francis paid Simpkins by hand-delivering over $150,000 in cash and by making several wire transfers to a bank account held in the name of Simpkins’s wife at the time. To conceal the true nature of the wire transfers, Simpkins allegedly used an email account belonging to his mistress to advise Francis of the routing and account information of the bank account belonging to his wife.
In return for the things of value, Simpkins allegedly used his influence within the U.S. Navy to benefit GDMA, including by helping GDMA to secure lucrative ship husbanding contracts to service U.S. Navy vessels in Thailand and the Philippines. In addition, Simpkins allegedly interceded on GDMA’s behalf in contract disputes with the U.S. Navy. The complaint specifically alleges that in 2006, Simpkins’s subordinate recommended that GDMA’s husbanding contract in Thailand not be extended due to “many exceedingly high cost” items. Simpkins allegedly overruled his subordinate and extended GDMA’s contract.
In another example, Simpkins allegedly instructed U.S. Navy officials in Hong Kong to discontinue the use of meters that monitored the volume of liquid waste that GDMA removed from U.S. Navy ships under its husbanding contracts. The use of these meters would have ensured proper accounting of the actual amount of waste removed to ensure that no overbilling occurred. Simpkins also allegedly instructed a U.S. Navy official not to review invoices that GDMA submitted in connection to a recent port call in Hong Kong after Francis complained that U.S. Navy personnel were asking questions.
The ongoing investigation is being conducted by NCIS and DCIS. The case is being prosecuted by Director of Procurement Fraud Catherine Votaw and Senior Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Robert S. Huie of the Southern District of California.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 15MJ0325 Paul Simpkins Age: 60 CHARGESConspiracy to Commit Bribery, in violation of 18 U.S.C. § 371. Maximum penalty five years in prison, $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater
INVESTIGATING AGENCIESDefense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Former High-Level Adviser to Bank CEO Charged in Manhattan Federal Court with Insider TradingRead the Press Release
PREET BHARARA, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the indictment of CEDRIC CAÑAS MAILLARD, a former high-level adviser to the CEO of a global bank, who engaged in securities trades based on material, nonpublic information he obtained through his employment. CAÑAS’s trades resulted in profits of approximately $917,239.
U.S. Attorney Preet Bharara said: “As alleged, Cedric Cañas exploited his access to material nonpublic information to purchase securities he reasonably knew would increase in value after a public announcement. In short order, he allegedly sold the securities for a nearly $1 million profit. Working with the FBI, we will continue to prosecute those who seek to reap illegal windfall profits from insider information.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Cañas allegedly based his purchase of Potash equities on illegally obtained inside information, which provided him with nearly $1 million in profits when all was said and done. His actions detail the existence of disingenuous trading principles that effectively thwart fairness in the marketplace. Today we remind the public that the FBI and our partners will continue to work to restore and uphold the integrity of our financial markets.”
According to the two-count Indictment unsealed today in Manhattan federal court:
In August 2010, CAÑAS engaged in a series of trades based on material, nonpublic information he obtained during the course of his employment. Prior to engaging in these trades, CAÑAS, who was employed at a global bank (the “Bank”) as a high-level adviser to the chief executive officer of the Bank, obtained confidential information related to the planned acquisition of Potash Corporation of Saskatchewan Inc. (“Potash”) by BHP Billiton (“BHP”) for $45 billion.
After receiving this information, and prior to the public announcement of the planned acquisition, CAÑAS, who worked for the Bank in Spain, purchased 30,000 Potash equity Contracts for Difference (“CFDs”), which are a form of highly leveraged securities, for which he paid a total of $1,500 in commission fees. Upon receiving CAÑAS’s CFD purchase orders, CAÑAS’s broker purchased an equivalent number of New York Stock Exchange-listed Potash shares. CAÑAS’s purchase of Potash CFDs violated the Bank’s Code of Conduct, which CAÑAS was aware of and understood. The Code of Conduct prohibited trading based upon inside information such as BHP’s planned acquisition of Potash.
On August 16, 2010, the closing price of Potash’s stock on the New York Stock Exchange was $112.15. On August 17, 2010, it was publicly announced that the board of Potash had received and rejected an unsolicited offer from BHP to purchase the common stock of Potash for $38.6 billion, or the equivalent of $130 per share. The price of Potash stock rose and ultimately closed on August 17, 2010, at $143.17 per share. CAÑAS liquidated his position in Potash equity CFDs on the same day as the public announcement, resulting in profits of approximately $917,239.
CAÑAS, 41, a Spanish citizen, has not been arrested.
CAÑAS is charged with two counts of securities fraud. Each count carries a maximum of 20 years in prison and a maximum fine of $5,000,000. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the FBI, and thanked the SEC for its assistance. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Edward Y. Kim is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former DMV Official Guilty of Accepting BribesRead the Press Release
SAN DIEGO – Alva Benavidez pleaded guilty today in federal court to conspiracy to accept bribes stemming from her employment at the California Driver Safety Office at the Department of Motor Vehicles.
Appearing before U.S. Magistrate Judge Karen S. Crawford, Benavidez admitted that she accepted more than $5,000 in cash and gifts from attorneys and their law firms in exchange for helping their clients obtain positive results in DMV hearings and unauthorized temporary licenses.
According to court records, Benavidez was an employee of the DMV since August 2000, where she worked as a Driver Safety Officer (“DSO”). As a DSO, Benavidez’s duties included presiding over hearings to determine whether a person charged with Driving Under the Influence (“DUI”) should have their license suspended. As an employee of the DSO, Benavidez had access to files, records and information of the DMV, including temporary licenses. In her plea agreement, Benavidez admitted that between 2005 and August 2014, she entered into an agreement with six different attorneys and six of their staff or representatives (collectively “co-conspirators”) to aid the attorneys in obtaining favorable treatment for clients who were charged with DUIs. In exchange for the favorable treatment for the clients of the co-conspirators, Benavidez accepted goods and services of value, including cash, meals, and luxury items such as designer purses, from the co-conspirators.
Some of the activity Benavidez admitted to in her plea agreement included stealing arrest packets from the DSO before the information about a DUI arrest could be entered into the DSO database, setting aside driver license suspensions, and providing unauthorized temporary driver licenses for people who had been arrested for DUIs. In exchange for her participation in the conspiracy, Defendant accepted gifts and bribes worth over $5,000 total, including cash, gift certificates, sunglasses, purses and other items of value.
Benavidez retired from the DMV in December 2014 after search warrants were executed at her home and office. She has been released on bond pending sentencing. The guilty plea is not final until it has been accepted by the district court. Benavidez is scheduled to be sentenced on April 20, 2015 at 9 a.m. before U.S. District Judge Cynthia A. Bashant.
Anyone with information about corruption at the DMV is asked to contact the Federal Bureau of Investigation at 1-877-NO-BRIBE (662-7423), or the DMV’s Investigations Branch-Office of Internal Affairs at (951) 653-5357.
DEFENDANT Case Number: 15CR0233-BAS Alva Garrido Benavidez Age: 51 San Diego, California CHARGESConspiracy to Accept Bribes – Title 18, U.S.C., Section 371
INVESTIGATING AGENCIES
Maximum penalty: 20 years’ imprisonment and $250,000 fineFederal Bureau of Investigation
Department of Motor Vehicles, Investigations Division, Special Operations Command, Office of Internal AffairsFormer Cobb County Parks and Recreation Employee Sentenced to 20 Years in Prison for Child PornographyRead the Press Release
ATLANTA - Ryan Hornback, a former Cobb County Parks and Recreation employee who also ran a photography business as a second job, has been sentenced to 20 years in prison for producing child pornography.
“Hornback desired access to more child pornography, and his solution was to produce more on his own to trade in the online community,” said Acting United States Attorney John Horn. “Victimizing the children he viewed online wasn’t enough, so he tragically brought yet another innocent victim to face the horrors of child porn on a personal level. This office devotes significant resources to combat child pornography, and will always focus on those offenders who take the despicable step of producing it.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Our community and its children are much more safe with this lengthy prison sentence handed down to Mr. Hornback. The FBI’s Violent Crimes Against Children Program will continue to provide significant investigative resources toward those individuals like Mr. Hornback who choose to prey on and exploit our nation’s children.”
According to Acting United States Attorney Horn, the charges and other information presented in court: On April 18, 2014, a federal search warrant was executed at Hornback’s residence in Kennesaw, Ga., based on information that he was actively trading child pornography. During a search of the home, Hornback acknowledged he used a Google email address to send child pornography he produced to another suspect in the state of Washington. He confessed he liked to trade the images with other people to get more child pornography for himself. He also acknowledged that he produced sexually explicit images of a minor victim over Thanksgiving in 2013, keeping these pictures on a thumb drive he owned. FBI agents were later able to identify the minor victim in the case through interviews and other investigative steps.
Hornback, 28, of Kennesaw, Ga., has been sentenced by United States District Court Judge Thomas W. Thrash to 20 years in prison to be followed by five years of supervised release. Hornback was convicted on these charges on October 7, 2014, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Kurt R. Erskine prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Bridgeport, WV mayor sentenced to 3 years for prescription painkiller traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Licensed pharmacist and former mayor of Bridgeport, West Virginia, Mario Blount, 52, was sentenced today to 36 months in prison for unlawfully distributing prescription painkillers, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Blount repeatedly distributed prescription painkillers, including oxycodone and oxymorphone, outside the scope of professional practice and for no legitimate medical purpose. In June 2013, he failed to report filling a prescription for 150 oxymorphone pills. In September 2013, he distributed oxymorphone pills without a physician’s prescription.
Blount pled guilty in September 2014 to a criminal Information charging him with one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Schedule II Controlled Substances,” one count of “False or Fraudulent Material Omission,” and one count of “Distribution of Oxymorphone.”
As part of the sentenced issued today, Blount will also be required to forfeit his interest in $15,000.00 in U.S. currency.
Assistant U.S. Attorney John Parr and U.S. Attorney William Ihlenfeld prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Former Berkshire Power Employees Charged in Air Pollution SchemeRead the Press Release
BOSTON – The former operations manager and a control technician at Berkshire Power Plant were charged today with tampering with environmental monitors in violation of the Clean Air Act.
Fred Baker, 51, of Southampton, Mass., the former Operations and Maintenance Manager at Berkshire Power Plant in Agawam, Mass. and Scott Paterson, 44, of Manchester, Conn., the former Instrument and Control Technician were charged today in Informations with conspiracy to violate the Clean Air Act, and other criminal violations of that statute. Both Baker and Paterson have agreed to plead guilty to the charges.
“Air pollutants emitted in the western part of our state can have a profound impact on our urban environments in and around Boston, as well as into coastal Maine,” said United States Attorney Carmen M. Ortiz. “Protecting New England’s airshed, through the criminal enforcement of the Clean Air Act, plays an important role in preserving human health and the environment. Berkshire Power Plant’s managers and a compliance worker deliberately sought to deceive regulators about the release of air pollutants, and fittingly now face criminal prosecution for that conduct.”
According to the Informations, from 2008 until March 2011, Baker instructed Paterson and other operators at Berkshire Power Plant to tamper with the plant’s Continuous Emissions Monitoring System (CEMS). The CEMS is an environmental monitoring system, required by federal law, which continuously samples, measures and records the concentration of regulated pollutants. Baker, Paterson and others at Berkshire Power Plant, tampered with the CEMS to save money, delay repairs and to avoid reporting to federal and state regulators that the plant, at times, was releasing pollutants – in this case, nitrogen oxides -- in excess of regulatory limits.
Initially, the defendants lowered the CEMS monitors by approximately .5 parts per million (ppm). In the summers of 2009 and 2010, when the plant underwent required independent audits of the pollution monitoring equipment, Baker instructed Paterson to take out the fraudulent adjustments in the monitors prior to the audit and re-introduce them after the auditors had left. Paterson made the fraudulent adjustments prior to, and after, each independent audit. Berkshire Power Plant was required to and did report the results of these audits to the Massachusetts Department of Environmental Protection (MassDEP) and the United States Environmental Protection Agency.
In 2010, the .5 ppm adjustment was not sufficient to allow the plant to run at full power and comply with the facility’s Clean Air Act permit. Rather than doing the necessary repairs to the plant and its environmental pollution control equipment, or running the plant at lower power levels, Baker instructed staff, including Paterson, to lower the CEMS readings even more to avoid reporting pollution emissions.
“Berkshire Power Plant management and staff had institutionalized a deliberate scheme to evade compliance with the Clean Air Act by altering their emission monitoring equipment as it suited them and not the law. This not only creates an unfair advantage over competitive energy and utility sources, but underscores how our environment suffers at the hand of criminal greed,” said Tyler Amon, Special Agent in Charge of the Environmental Protection Agency’s Criminal Investigation Division in Boston.
“These employees intentionally cut corners and violated environmental laws intended to monitor pollution emissions,” said Massachusetts Attorney General Maura Healey. “These charges are the result of a collaborative effort with our state and federal partners, and we will continue to investigate cases in which people seek to take shortcuts at the expense of the environment.”
“This complex technical investigation and resulting plea agreement, involving fraudulent practices related to air pollution monitoring, is the result of state and federal officials combining resources and working together to find the truth,” said Massachusetts Department of Environmental Protection Commissioner Martin Suuberg. “Through partnership with our federal law enforcement and environmental protection counterparts, MassDEP increases its ability to fulfill our mission to protect our air and the public health.”
The statutory maximum penalties for the conspiracy charge are five years in prison and three years of supervised release. The statutory maximum penalties for each of the Clean Air Act charges are two years in prison and one year of supervised release. Both statutes provide for a maximum fine of $250,000 or twice the gross loss or gain per count, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz, Attorney General Healey, and EPA SAC Amon, made the announcement today. The case was investigated with the assistance of the Massachusetts Attorney General’s Environmental Crimes Strike Force, the Massachusetts Environmental Police and the Massachusetts Department of Environmental Protection. The case is being prosecuted by Sara Miron Bloom of Ortiz’s Economic Crimes Unit and Daniel Licata, Assistant Attorney General with the Massachusetts Attorney General’s Office working as a Special Assistant U.S. Attorney.
The details contained in the Informations are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida man, two others, sentenced for drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – David Stephen Rokisky, 37, of Tampa, Florida, along with two additional individuals, was sentenced in federal court today on drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced.
Rokisky was sentenced today to 27 months in prison for distributing hydrocodone in Marion County, West Virginia throughout 2013. He pled guilty in March 2013 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Hydrocodone.”
Amber McCormick, 29, of Clarksburg, West Virginia, was sentenced today to 12 months and one day in prison for selling oxycodone near the Harrison Street Playground in Clarksburg in April 2013. She pled guilty in October 2014 to one count of “Distribution of Oxycodone Within 1000’ of a Protected Location.”
The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated Rokisky and McCormick.
David Jensen, 37, an inmate at the Federal Correctional Institution Gilmer, was sentenced to an additional six months in prison today for unlawful possession of heroin. He was discovered in possession of heroin within FCI Gilmer in October 2014. He pled guilty today to one count of “Possession of a Prohibited Object – Heroin.”
Assistant U.S. Attorney John Parr prosecuted Rokisky and Assistant U.S. Attorney Shawn Morgan prosecuted McCormick and Jensen on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Federal Judge Sentences Three Methamphetamine TraffickersRead the Press Release
A total of 57 defendants have been prosecuted federally in connection with Operation “Dixie Crystal”
STATESVILLE, N.C. – On Monday February 2, 2015, U.S. District Judge Richard L. Voorhees handed down prison sentences to three men for their involvement in a methamphetamine trafficking ring, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Kenneth Herman Bennett, 53, of West Jefferson, N.C. was sentenced to 188 months in prison, followed by five years of supervised release. Bennett pleaded guilty in December 2013 to one count of conspiracy to distribute and to possess with intent to distribute methamphetamine. According to court documents and today’s sentencing hearing, Bennett was the one of the conspiracy’s leaders and a supplier of crystal methamphetamine smuggled in to the United States from Mexico.
Judge Voorhees also sentenced Troy William Yount, Jr., 49, of Hudson, N.C. to 51 months in prison, followed by five years of supervised release, and Isaac Andrew Waters, 38, of Charlotte, to 33 months in prison and two years of supervised release. Yount and Waters each pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine in November 2013 and April 2014, respectively.
The prosecutions stem from Operation “Dixie Crystal,” a joint drug task force operation which began in 2012, targeting significant methamphetamine traffickers in Ashe, Allegheny, Caldwell, Watauga, Wilkes Counties, and Johnson County in Tennessee. To date, at total of 57 defendants have been prosecuted federally in connection with this investigation.
According to filed court documents and court proceedings, beginning in 2003 and continuing through 2011, the drug trafficking conspiracy was responsible for the sale of more than 200 pounds of methamphetamine, with a street value of more than $4,000,000. Over the course of the investigation, law enforcement seized approximately 30 firearms, five vehicles, 20 pounds of methamphetamine, and $150,000 in U.S. currency.
The following 30 defendants each pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and were sentenced as follows:
1. Larry Mitchell Snyder of Trade, Tenn., was sentenced in July 2014 to 120 months in prison and five years of supervised release.
2. Earl Butler Potter of Todd, N.C., was sentenced in October 2014 to 37 months in prison and two years of supervised release.
3. Stephanie Lynn Shatley of Lansing, N.C., was sentenced in October 2014 to 60 months in prison and three years of supervised release.
4. Jared William Pardue of Zionville, N.C., was sentenced in October 2014 to 41 months in prison and three years of supervised release.
5. Tawana M. Sparks of Hudson, N.C., was sentenced in October 2014 to 24 months in prison and two years of supervised release.
6. Ricky Allen Latham of Creston, N.C., was sentenced in October 2014 to 46 months in prison and two years of supervised release.
7. Baxter Smith James of Boone, N.C., was sentenced in October 2014 to time served and eight years of supervised release.
8. Courtney Wayne Patterson of Todd, N.C., was sentenced in August 2014 to 110 months in prison followed by five years of supervised release.
9. Deborah Phillips Lewis of Todd, N.C., was sentenced in October 2014 to 33 months in prison followed by three years of supervised release.
10. James Foy Parsons of West Jefferson, N.C., was sentenced in August 2014 to 33 months in prison and two years of supervised release.
11. Tina Ann Wheeler (a/k/a Tina Ann Miller) of Crumpler, N.C., was sentenced in July 2014 to 108 months in prison, followed by five years of supervised release.
12. Mauricio “Mario” Baltazar of Lake City, Ga., was sentenced in June 2014 to 169 months in prison and five years of supervised release.
13. Jose Francisco Jimenez Pina of Mexico, was sentenced in April 2014 to 180 months in prison and five years of supervised release. In addition to the drug conspiracy charge, he also pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting.
14. Jason Michael Benfield of Laurel Springs, N.C., was sentenced in June 2014 to 121 months in prison and five years of supervised release. In addition to the drug conspiracy charge, he also pleaded guilty to carrying of a firearm in furtherance of a drug trafficking crime.
15. Ernest Monroe Parlier, Jr. of Crumpler, N.C., was sentenced in April 2014 to 84 months in prison followed by five years of supervised release. In addition to the drug conspiracy charge, he also pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime.
16. Jeremy Keith Nunnenkamp, of North Wilkesboro, N.C., was sentenced in July 2014 to 120 months in prison followed by five years of supervised release.
17. Jeffrey Dale Watson of Fleetwood, N.C., was sentenced in June 2014 to 15 months in prison followed by five years of supervised release.
18. James Thomas Hawkins of Laurel Springs, N.C., was sentenced in August 2014 to 70 months in prison and five years of supervised release.
19. Chad Morgan Yates of Chattahoochee Hills, Ga., was sentenced in July 2014 to 97 months in prison followed by five years of supervised release.
20. Christy Lee Latham of Warrensville, N.C., was sentenced in June 2014 to 84 months in prison followed by five years of supervised release.
21. Melanie Virginia Osley of Chattahoochie Hills, Tenn., was sentenced in April 2014 to 108 months in prison and five years of supervised release.
22. Luis Enrique Garcia, of Mexico, was sentenced in December 2013 to 188 months in prison and five years of supervised release.
23. Jose Francisco Jimenez Pina, of Mexico, was sentenced in April 2014 to 180 months in prison and five year of supervised release. In addition to the drug conspiracy charge, he also pleaded guilty to unlawful use and carry of a firearm in furtherance of a drug trafficking crime.
24. Jose Humberto Jimenez Pina, of Mexico, was sentenced in April 2014 to 50 months in prison, followed by four years of supervised release. In addition to the drug conspiracy charge, he also pleaded guilty to unlawful use and carry of a firearm in furtherance of a drug trafficking crime.
25. Bobby Giles Shore, of Lansing, N.C. was sentenced in April 2014 to 24 months in prison and five years of supervised release.
26. Danny Eller of West Jefferson, N.C., was sentenced in April 2014 to 21 months in prison followed by five years of supervised release.
27. Cristie Aldridge Dollar of Foscoe, N.C., was sentenced in December 2013 to 121 months in prison followed by five years of supervised release.
28. Pamela Ann Corum, of Zionville, N.C. was sentenced in March 2014 to 63 months in prison followed by five years of supervised release.
29. Tammy Wynette Woody, of West Jefferson, N.C., was sentenced in June 2014 to 30 months in prison followed by five years of supervised release.
30. Javier Sanchez Chavez of Mexico, was sentenced in March 2014 to 21 months in prison and one year of supervised release. He pleaded guilty to withholding information on a crime.Seventeen additional defendants have pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and are currently awaiting sentencing.
31. John Dale Darden, of Jefferson, N.C..
32. Larry Curtis Hooks of Lenoir, N.C.
33. William Clyde Townsend of Mountain, Tenn.
34. Victor Javier Hernandez (address unknown).
35. Terri Elaine Clark of Lenoir, N.C.
36. Michael Wayne Jenkins of Bloomer, N.C.
37. Bradley Eugene Goble of Lenoir, N.C.
38. Karl Albert Blanton of Lenoir, N.C.
39. Christopher Everett Triplett of Hudson, N.C.
40. Anthony Dwayne Byers of Jefferson, N.C.
41. Toni Leigh Wilson of Stanley, N.C.
42. Jesse Lawrence Burkett of Fleetwood, N.C.
43. John Paul Caudill of Laurel Springs, N.C.
44. Shannon Marie Williams Greene of Hickory, N.C.
45. Stephen Roger Dean (address unknown).
46. Lisa Dawn Wentworth of Lenoir, N.C.
47. Yee Thor of Newton, N.C.The following three defendants have agreed to plead guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and are expected to appear in federal court to formally accept their pleas once their hearings have been scheduled:
48. Anthony Lee Day of Crumpler, N.C.
49. Donald Ray Newton of Byron, Ga.
50. Marixa Dawn Hart of Jefferson, N.C.Three more defendants have been charged with conspiracy to distribute and to possess with intent to distribute methamphetamine:
51. Roger Dale Franklin of Lenoir, N.C. (via federal criminal indictment).
52. Brian Ledford of Newton, N.C. (via federal criminal complaint).
53. Heather Renee Miller of Hickory, N.C. (via federal criminal complaint).Another defendant, Martin Martinez Saldana, 43, of West Jefferson, N.C. was convicted by a jury in March 2014 of conspiracy to distribute and to possess with intent to distribute methamphetamine and of receipt and possession of a firearm that was not registered to him. He is currently awaiting sentencing.
In making today’s announcement, U.S. Attorney Tompkins recognized the following federal, state and local agencies which partnered in Operation Dixie Crystal, and thanked them for their continued cooperation and support:
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Drug Enforcement Administration (DEA); U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); North Carolina State Bureau of Investigation (NC SBI); Ashe County Sheriff’s Office; Allegheny County Sheriff’s Office; Boone Police Department; Caldwell County Sheriff’s Office; Watauga County Sheriff’s Office; Wilkes County Sheriff’s Office; Johnson County Sheriff’s Office in Tennessee; Lenoir Police Department; Hickory Police Department; and Catawba County Sheriff’s Office.
The prosecutions are being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
United States v. Jose Humberto Pina; Case Number 5:12-cr-48-RLV.
United States v. Saldana et al; Case Number 5:12-cr-49-RLV.
United States v. Shore; Case Number 5:12-cr-50-RLV.
United States v. Eller; Case Number 5:12-cr-51-RLV.
United States v. Corum; Case Number 5:12-cr-52-RLV.
United States v. Dollar; Case Number 5:12-cr-53-RLV.
United States v. Garcia et al; Case Number 5:12-cr-54-RLV.
United States v. Chavez; Case Number 5:13-cr-12-RLV.
United States v. Osley; Case Number 5:13-cr-15-RLV.
United States v. Parlier; Case Number 5:13-cr-18-RLV.
United States v. Latham; Case Number 5:13-cr-19-RLV.
United States v. Benfield; Case Number 5:13-cr-26-RLV; Complaint Number 3:13-mj-83.
United States v. Hawkins; Case Number 5:13-cr-27-RLV.
United States v. Yates; Case Number 5:13-cr-28-RLV.
United States v. Woody; Case Number 5:13-cr-36-RLV; Complaint Number 3:13-mj-132.
United States v. Nunnenkamp; Case Number 5:13-cr-39-RLV; Complaint Number 3:13-mj-132.
United States v. Watson; Case Number 5:13-cr-40-RLV; Complaint Number 3:13-mj-132.
United States v. Bennett; Case Number 5:13-cr-41-RLV; Complaint Number 3:13-mj-132.
United States v. Baltazar; Case Number 5:13-cr-42-RLV; Complaint Number 3:13-mj-137.
United States vs. Hartley; Case Number 5:13-cr-46-RLV.
United States vs. Lewis; Case Number 5:13-cr-47-RLV.
United States vs. Parsons; Case Number 5:13-cr-48-RLV.
United States vs. Yount; Case Number 5:13-cr-49-RLV.
United States vs. Snyder et al; Case Number 5:13-cr-50-RLV.
United States vs. Patterson; Case Number 5:13-cr-51-RLV.
United States vs. Wheeler; Case Number 5:13-cr-52-RLV.
United States vs. Darden, 5:14-cr-23-RLV.
United States vs. Hooks, 5:14-cr-30-RLV.
United States vs. Townsend, 5:14-cr-36-RLV.
United States vs. Hernandez, 5:14-cr-40-RLV.
United States vs. Clark, 5:14-cr-41-RLV.
United States vs. Jenkins, 5:14-cr-43-RLV.
United States vs. Goble, 5:14-44-RLV.
United States vs. Blanton, 5:14-cr-45-RLV.
United States vs. Triplett, 5:14-cr-50-RLV.
United States vs. Byers, 5:14-cr-51-RLV.
United States vs. Wilson, 5:14-cr-52-RLV.
United States vs. Burkett, 5:14-cr-63-RLV.
United States vs. Caudill, 5:14-cr-68-RLV.
United States vs. Greene, 5:14-cr-71-RLV.
United States vs. Dean, 5:14-cr-76-RLV.
United States vs. Wentworth, 5:14-cr-86-RLV.
United States vs. Thor, 5:15-cr-1-RLV.
United States vs. Day, 5:15-cr-5-RLV.
United States vs. Newton, 5:15-cr-10-RLV.
United States vs. Hart, 5:15-cr-7-RLV.
United States vs. Franklin, 3:14-cr-81-RLV; Complaint Number 3:14-mj-248.
United States vs. Ledford, 3:15-mj-30-DSC.
United States vs. Miller, 3:15-mj-30-DSC.Fargo Man Pleads Guilty to Possession and Distribution of Child PornographyRead the Press Release
FARGO - U. S. Attorney Timothy Q. Purdon announced that on Feb. 3, 2015, Devon Cole Reed, 27, Fargo, N.D., pleaded guilty before U. S. District Judge Ralph R. Erickson to two counts of receiving and distributing child pornography and three counts of possession of child pornography.
This case came to the attention of law enforcement after the electronic service provider Google notified the National Center for Missing and Exploited Children that a specific Gmail account contained child pornography. Law enforcement traced the account to Devin Reed residing in Fargo, North Dakota. A search warrant of Reed’s email accounts revealed that he was using them for the purpose of trading child pornography with other users located throughout the country. Law enforcement also recovered various media from Reed’s residence which also contained child pornography.
The maximum penalty for Counts One and Two is 40 years’ incarceration and the maximum penalty for Counts Three, Four, and Five is 20 years’ incarceration including a term of supervised release for up to life.
The case was investigated by Homeland Security Investigations, the North Dakota Bureau of Criminal Investigations and the Fargo Police Department.
Assistant U. S. attorney Jennifer Puhl is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood in conjunction with Internet Crimes Against Children Task Force (ICAC) help Federal, State and Local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations and criminal prosecutions. Project safe childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Eight Defendants Arrested for Drug Trafficking in Operation Three AmigosRead the Press Release
Camden, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas; David Resch, Special Agent in Charge of the FBI; David Downing, Assistant Special Agent in Charge of the DEA; David Butler, Prosecuting Attorney for the 13th Judicial District of Arkansas; and the Arkansas State Police, announced today that eight (8) individuals have been charged with state and federal crimes involving large scale drug trafficking of methamphetamine and crack cocaine in Camden, Arkansas, and surrounding areas.
The investigation, known as Operation Three Amigos, resulted in five arrests today by local, state, and federal law enforcement as part of a roundup of the charged defendants. Previously, three defendants were arrested and charged in the operation. The investigation has resulted in the seizure of two firearms and several rounds of ammunition, four vehicles and over $10,000.00 in United States currency from members of the organization.
Agents with the Drug Enforcement Administration and FBI Task Force Officers began their investigation into drug trafficking in Ouachita County in 2011. The investigation included controlled purchases of methamphetamine and crack cocaine, surveillance and monitoring, and other investigative techniques.
U. S. Attorney Eldridge stated, “The members of this drug trafficking operation brought methamphetamine and crack cocaine into Camden and surrounding areas. I thank our local, state, and federal law enforcement partners for continuing to work with this office to pursue and prosecute those who bring criminal activity and the fear and violence that come with it into our communities in the Western District of Arkansas.”
“The arrests today are a result of concentrated efforts from the Camden Police Department, Ouachita County Sheriff’s Office, Drug Enforcement Administration, the 13th Judicial Drug Task Force, United States Attorney’s Office, Arkansas State Police, and the FBI,” states David T. Resch, Special Agent in Charge of the Little Rock Federal Bureau of Investigation, “Together, we are committed and focused to stopping the movement and sale of drugs on the streets of Arkansas.”
“We have taken another step in our fight against drug trafficking”, said DEA Assistant Special Agent in Charge David Downing. “Thanks to the cooperative success of this investigation with our local, state and federal law enforcement partners, we have identified a significant drug trafficking organization and disrupted their ability to operate throughout Arkansas and beyond. Our citizens are now safer as this organization lies in shambles,” said Downing.
David Butler, Prosecuting Attorney for the 13th Judicial District of Arkansas commented, “In addition to praise for the officers associated with federal, state, and local agencies who participated in the joint drug investigation, thanks to the many officers from across the state who assisted local law enforcement officials in apprehending the suspects and executing the search warrants.
Each defendant was charged with at least one count of Distribution of a Controlled Substance - namely cocaine base, a schedule II controlled substance. They are all from Camden. The defendants arrested on federal charges today are as follows:
Sheldon “Yak” Mitchell, age 34 - 3 counts
Kim “2Lou” Williams, age 39 - 3 counts
Willie “Will” Williams, age 41 - 3 counts
Jeffrey “Woodchuck” Haywood, age 51 - 2 counts
Other defendants that are part of this operation are as follows:
Carlos “Li’l Gafford” Morgan, age 32 - of Camden was previously arrested and arraigned on 4 counts of same.
Senica Howard, age 36 of El Dorado was previously arrested and arraigned on 2 counts of Distribution of Methamphetamine.
Mario “Hoolie” Thomas, age 36 - Thomas is currently set for trial and charged with 2 counts of Distribution of more than 28 grams of a Controlled Substance - namely cocaine base, a schedule II controlled substance.
An additional defendant was arrested on state charges today, Calvin Williams, age 42 of Camden, Arkansas.
The most serious charges for distribution of more than 50 grams of methamphetamine and for conspiracy to distribute more than 280 grams of crack cocaine have maximum penalties of life in prison. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violations.
Operation Three Amigos was a joint operation between the 13th Judicial Drug Task Force, the Camden Police Department, the Ouachita County Sheriff’s Office, the Little Rock FBI Division, the Drug Enforcement Administration, the Ouachita County Prosecutor’s Office, and the Arkansas State Police. Assistant U.S. Attorney Ben Wulff is prosecuting the case for the Western District of Arkansas.
An indictment is merely an accusation. An arrest warrant represents a finding of probable cause. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Duval County Man Sentenced to Prison for Counterfeit ChecksRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Jasper Lee Shields (59, Jacksonville) to 57 months in federal prison for aiding and abetting the attempted passing of counterfeit checks and for violating his supervised release. He pleaded guilty on October 29, 2014.
According to court documents, on February 26, 2014, the Florida Highway Patrol (FHP) conducted a traffic stop on a vehicle Shields was driving on Interstate 95, in Duval County, Florida. Larry Bernard Taylor was a passenger in the vehicle. When asked for a driver’s license, Shields stated that he did not have one. Shields subsequently provided consent for the FHP to search the vehicle, during which officers located 12 counterfeit business checks purportedly issued from Walgreens. The checks were made out to three different payees, in various amounts.
Taylor pleaded guilty to his role in the scheme in November 2014. He is scheduled for sentencing on February 9, 2015.
This case was investigated by United States Secret Service North Florida High-Tech Crime Task Force and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
District Court Enters Permanent Injunction Against New Hampshire Company and Senior Executives to Stop Distribution of Adulterated and Misbranded ProductsRead the Press Release
The U.S. District Court for the District of New Hampshire entered a consent decree of permanent injunction against Atrium Medical Corporation (Atrium), Maquet Holding B.V. & Co. KG (Maquet), Maquet Cardiovascular LLC (Maquet CV), Maquet Cardiopulmonary AG (Maquet CP), Heinz Jacqui and Gail Christie to prevent the distribution of adulterated and misbranded medical devices, the Department of Justice announced today.
The department filed a complaint on Feb. 3 in the U.S. District Court for the District of New Hampshire, at the request of the U.S. Food and Drug Administration (FDA), alleging that defendants introduced adulterated and misbranded medical devices into interstate commerce. According to the complaint, Atrium manufactures medical devices for cardiovascular-related uses, including chest drains, surgical meshes, vascular grafts and stent systems.
The FDA’s Quality System (QS) regulation sets forth current good manufacturing practice requirements for medical devices. The QS regulation governs the methods used in, and the facilities and controls used for, the design, manufacture, packaging, labeling, storage, installation and servicing of all finished devices intended for human use. The regulation is intended to ensure that finished devices will be safe and effective and otherwise in compliance with the federal Food, Drug and Cosmetic Act (FDCA). A medical device that has been manufactured, packed, stored or installed in violation of the QS regulation is deemed to be adulterated.
“The American public needs to have the confidence that medical devices on the market are safe and effective,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “The failure to comply with the quality system regulation for medical devices can pose a serious risk to the public health.”
According to the complaint, Atrium manufactures its medical devices at a facility in Hudson, New Hampshire. As set forth in the complaint, Maquet CV has a manufacturing facility in Wayne, New Jersey; Maquet CP has manufacturing facilities in Hechingen and Rastatt, Germany; and Maquet manages quality operations for the corporate defendants: Heinz Jacqui has been Maquet’s Chief Executive Officer and Managing Director since April 2012 and Gail Christie has been Maquet’s Corporate Chief Quality Assurance/Regulatory Affairs and Compliance Officer since October 2013.
According to the complaint, FDA inspections of Atrium’s New Hampshire facility revealed deviations from current good manufacturing practice requirements for medical devices. Specifically, the complaint alleges that during a 2013 inspection, FDA observed numerous deviations from regulations for medical devices, including a failure of the company to establish and maintain procedures for implementing corrective and preventive action. As alleged in the complaint, the violations of the QS regulation observed in 2013 were similar to observations FDA made in separate inspections in September 2012, March 2010, and March 2009.
In addition, according to the complaint, as part of the 2013 inspection of Atrium’s manufacturing facility, FDA documented a violation of the Medical Device Reporting regulation given the company’s failure to submit a medical device report within 30 days of receiving or otherwise becoming aware of information that reasonably suggested that a marketed device may have caused or contributed to a death or serious injury.
The complaint also alleges that FDA performed inspections at the Maquet CV’s and Maquet CP’s manufacturing facilities, and documented numerous violations of the QS regulation for medical devices.
In conjunction with the filing of the complaint, all of the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction, which requires the defendants to come into compliance with the FDCA and remedy past deficiencies in their current good manufacturing practices. The consent decree requires that Atrium’s manufacturing facility in Hudson, New Hampshire, be shut down (with limited exceptions) until corrective actions described in the consent decree are completed. Corrective actions include addressing the deficiencies previously identified by FDA.
Under the consent decree, Atrium is permitted to continue to manufacture and distribute certain medical devices deemed to be medically necessary. In order to do so, the defendants must comply with specific notification and other provisions in the consent decree. The consent decree also provides that the corporate defendants shall pay the United States $6 million in equitable disgorgement within 28 days after the entry of the consent decree.
“Patients must be assured that medical devices are safe, effective and high quality,” said Jan Welch, Acting Director of the Office of Compliance in the FDA’s Center for Devices and Radiological Health. “The FDA will remain vigilant in bringing companies that do not meet our regulatory requirements back to a sustainable state of compliance.”
The government is represented by Trial Attorney Dan Baeza of the Civil Division’s Consumer Protection Branch, with the assistance from Assistant U.S. Attorney Michael McCormack of the District of New Hampshire and Assistant Chief Counsel Shannon Singleton of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Distributor and Enforcer for Atlantic City "Dirty Block" Gang Admits Role in Heroin Trafficking ConspiracyRead the Press Release
Also Pleads Guilty to Firearms Offense
CAMDEN, N.J. - An Atlantic City, New Jersey, man today admitted 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.
Kamal Allen, a/k/a “Geez,” a/k/a “Maly Geez,” 27, 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, 1 kilogram or more of heroin, and one count of possessing a firearm and ammunition while being a previously convicted felon.
According to documents filed in this and other cases and statements made in court: Allen acted as a distributor and enforcer on behalf of Derry, helping Dirty Block to distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court, in Atlantic City. Allen was arrested on March 26, 2013. Allen said in court that he and others travelled with Derry to a shooting range in Lakewood, New Jersey, on Jan. 20, 2013, where Allen – a previously convicted felon – used, possessed, and discharged a firearm. Allen and other members of the group also participated in a violent altercation with rival drug traffickers at an Atlantic City casino in December 2012.
The charge of drug conspiracy in a protected zone, to which Allen pleaded guilty, carries a minimum penalty of 10 years in prison, a maximum penalty of life in prison, and a maximum potential fine of up to $20 million. Sentencing is scheduled for May 12, 2015.
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 guilty plea.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Justin C. Danilewitz, and Special Assistant U.S. Attorney Edmond Malqui-Burgos of the Atlantic County Prosecutor’s Office.
Defense counsel: Jerome A. Ballarotto Esq., Trenton, N.J.
15-042Detroit man pleads guilty to heroin crimesRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Derrick Wayne Goodwin, 25, of Detroit, pleaded guilty to aiding and abetting the possession of heroin with the intent to distribute.
Derrick Goodwin admitted that between the fall of 2013 and February 2014, he conspired with other individuals to distribute heroin in the Huntington, West Virginia, area. He stated that he and his co-conspirators arranged for the transportation of the heroin from Detroit to Huntington.
Derrick Goodwin utilized an apartment in the 1000 block of 12th Avenue in Huntington to store and distribute heroin. On Feb. 13, 2014, agents with the Huntington Violent Crimes and Drug Task Force executed a search warrant at the apartment, where they recovered around 41 grams of heroin, two firearms and $2,411.
That same day, agents executed a search warrant at the Super 8 Motel on 16th Street Road in Huntington. Agents found Derrick Goodwin and another man in one of the rooms, with a search uncovering around 203.6 grams of heroin and $2,915. Goodwin stated he jointly possessed the heroin with a partner for the purpose of distribution.
Derrick Goodwin 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 today that Christopher Jermaine Taylor, 29, of Detroit, pleaded guilty to conspiracy to distribute heroin.
Taylor admitted that between the summer of 2012 to February 2014, he conspired with other individuals to distribute more than 100 grams of heroin in the Huntington, West Virginia area. Taylor said he and his co-conspirators arranged for the transportation of the heroin from Detroit to Huntington.
During the conspiracy, Taylor and the others utilized residences in Huntington as locations to distribute heroin. He stated they agreed to provide heroin to the residents’ occupants in exchange for utilizing them for the distributions.
Taylor leased an apartment in the 600 block of 22nd St. in Huntington in February 2013. In April 2013, Huntington Police Department officers seized around 23.6 grams of heroin and $7,380 from the apartment.
In February 2014, agents with the Huntington Violent Crimes and Drug Task Force executed a search warrant at a residence in Detroit. Agents located Taylor, and seized a firearm.
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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Denver Man Indicted for the Receipt and Possession of Child Pornography Ordered Held in Custody Without BondRead the Press Release
DEFENDANT WAS A REGISTERED SEX OFFENDER DUE TO A PREVIOUS CHILD PORNOGRAPHY CONVICTION
DENVER – Shawn Cheever, age 44, of Denver, Colorado, was ordered detained without bond today by U.S. Magistrate Judge Kathleen M. Tafoya, U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. The detention order came today following a hearing where at its conclusion Magistrate Judge Tafoya found that the defendant was a danger to the community and a risk of flight.
Cheever was indicted by a federal grand jury in Denver on January 27, 2015. He was arrested by special agents with the FBI soon thereafter. He then made his initial appearance on January 29, 2015, where he was advised of his rights and the charges pending against him. In addition to today’s detention hearing, Cheever was arraigned, where he entered a pro-forma not guilty plea.
According to the indictment, count one alleges that on October 28, 2014, the defendant knowingly received child pornography via his computer. Count two alleges that on January 6, 2015, the defendant knowingly possessed any computer disk or other material that contained child pornography.
During today’s detention hearing, Assistant U.S. Attorney (AUSA) Colleen Covell argued that Cheever should be held without bond because he was a danger to the community and a risk of flight. To bolster her argument, AUSA Covell told the court that Cheever was a danger to the community because, in part, he was a registered sex offender due to a prior conviction in a child pornography case. Further, the defendant had 23 prior convictions (11 of which were felonies). Arguing the defendant is a risk of flight, Covell told the court that Cheever failed to appear in court 14 times. Finally, the defendant is a documented methamphetamine user.
If convicted of receipt of child pornography, the defendant faces not more than 20 years imprisonment, but if there is a similar conviction, the defendant faces not less than 15 years, and up to 40 years in federal prison, as well as up to a $250,000 fine. If convicted of possession of child pornography, the defendant faces not more than 10 years in federal prison, but if there is a similar conviction, the defendant faces not less than 10 years and up to 20 years in federal prison, as well as up to a $250,000 fine.
This case was investigate by the Federal Bureau of Investigation (FBI).
The defendant is being prosecuted by Assistant U.S. Attorney Colleen Covell.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
David Cote Pleads Guilty to Theft from South Burlington Car DealershipRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that David Cote, 44, of Essex Junction, pleaded guilty on January 28, 2015, in United States District Court in Brattleboro to a charge of access device fraud. U.S. District Judge J. Garvan Murtha released Cote on conditions pending sentencing, which is set for May 19.
On January 13, 2015, the United States Attorney filed a criminal information charging Cote with access device fraud. According to the information, from about 2009 until his firing in 2012, Cote was employed as the parts manager at Freedom Nissan, a car dealership in South Burlington. As parts manager, Cote was responsible for ordering parts and accessories for use in the business. Freedom Nissan purchased some parts and accessories through vendors on e-Bay. Freedom Nissan paid for many of these Internet purchases with a company credit card.
For some period of time prior to his termination, Cote defrauded Freedom Nissan of thousands of dollars by ordering parts and accessories from vendors on e-Bay, paying for the parts and accessories with the company credit card, then selling the parts and accessories in private sales, and pocketing the proceeds of these sales without reimbursing Freedom Nissan.
Cote faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the South Burlington Police Department and the Federal Bureau of Investigation.
Cote is represented by Richard Goldsborough. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Dallas-Area Man Pleads Guilty to Conspiring to Traffic Minor into the New Orleans Area for Purpose of Prostitution and Obstruction of JusticeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TAUREAN JACKSON, age 25, from Dallas, Texas, pled guilty today to conspiring to traffic a minor from the Dallas area into the New Orleans area for the purposes of that minor engaging in prostitution and obstructing a federal investigation into his conduct.
According to court documents, JACKSON created and operated “Star City Vixens,” an escort agency that was a front for prostitution activity. Star City Vixens advertised “upscale adult entertainment” that would travel around the country to “major social events.” JACKSON initially recruited his “bottom” prostitute, A.B., to join “Star City Vixens,” in 2012. JACKSON became A.B.’s pimp and arranged for her to engage in sexual acts with others in exchange for money.
JACKSON was responsible for advertising and scheduling prostitution calls with A.B. JACKSON kept all, or most, of the proceeds from the prostitution calls. As a means of controlling A.B.’s behavior and ensuring her compliance, JACKSON beat and choked her on multiple occasions, often in front of others. On several occasions, JACKSON burned A.B. with lit cigarettes to discipline her.
In mid-June 2013, JACKSON and A.B. met the victim, who was then 16-years-old, in the Dallas-area and recruited her to begin working for JACKSON as a prostitute. As part of his recruitment process, JACKSON showed the victim a video he recorded and uploaded to Youtube.com that depicted the purportedly glamorous life of a prostitute and showed JACKSON and A.B. in a hotel room, riding in a stretch limousine, drinking champagne, and eating a heaping plate of nachos.
Over the course of the next several weeks, JACKSON and A.B. drove the victim throughout Texas and Louisiana for the purpose of A.B. and the victim engaging in prostitution, which JACKSON advertised, arranged, and scheduled using an online classified advertisement. JACKSON arranged for the victim to watch A.B. engage in prostitution acts as a means of educating her on the best way to perform sexual acts. JACKSON required A.B. to turn over all, or most, of the proceeds she earned from prostitution calls.
JACKSON disciplined A.B. in front of the victim and told the victim that he would do the same to her if she ever tried to leave him. Additionally, the victim was prepared to testify that on at least one occasion JACKSON struck her across the legs and buttocks with an extension cord.
On July 10, 2013, A.B. and the victim were arrested in a Metairie hotel room by undercover law enforcement officers who responded to an online classified advertisement offering a prostitution date.
A.B., who pled guilty in September 2014 for her role in traffic the victim, faces a maximum sentence of five years imprisonment, followed by three years of supervised release, and a $250,000 fine. She may also be required to register as a sex offender. U.S. District Judge Susie Morgan set sentencing for April 8, 2015.
JACKSON faces a maximum sentence of life imprisonment, followed by a lifetime of supervised release, and a $250,000 fine. He may also be required to register as a sex offender. U.S. District Judge Susie Morgan set sentencing for May 20, 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, the Jefferson Parish Sheriff’s Office – Vice Division, with assistance from the FBI Dallas Child Exploitation Task Force, and the Dallas Police Department High Risk Victims Unit in investigating this matter. Assistant United States Attorneys Jordan Ginsberg and Brandon Long are in charge of the prosecution.
Convicted Felon Sentenced for Attempting to Illegally Re-Enter the U.S.Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Fernando DeAzevedo Melo, 46, a citizen of Portugal, who was convicted of attempting to re-enter the United States following a subsequent felony conviction, was sentenced to time served (seven months) by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that on June 30, 2014, Melo attempted to re-enter the United States at the Rainbow Bridge. Because the defendant had previously been removed from the United States for a previous felony conviction, he needed permission to reapply for admission into the United States.
The investigation is the culmination of an investigation on the part of Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.
Colorado Man Pleads Guilty to Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Martin Pelayo, 39, of Colorado Springs, Colo., pleaded guilty this morning in federal court to a heroin trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Pelayo was arrested on Sept. 29, 2014, at the Greyhound Bus Station in Albuquerque, N.M., after a consensual search of his baggage by DEA agents revealed that he was carrying more than a kilogram of heroin concealed in a sleeping bag. Pelayo subsequently was indicted on Oct. 21, 2014, and charged with possession of heroin with intent to distribute.
During today’s proceedings, Pelayo pled guilty to a felony information charging him with possession of heroin with intent to distribute. In his plea agreement, Pelayo admitted that on Sept. 26, 2014, he was traveling on a Greyhound Bus from Los Angeles, Calif., to Charlotte, N.C. During a stop in Albuquerque, Pelayo had a conversation with a law enforcement officer during which he permitted the officer to search his luggage. The search revealed two bundles of heroin which were concealed within Pelayo’s sleeping bag. Pelayo admitted that he was planning to deliver the heroin to another person in exchange for money.
At sentencing, Pelayo faces a maximum statutory penalty of 20 years in federal prison. Pelayo was remanded into federal custody after entering his guilty plea. He will remain detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Jacob Wishard is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Bulgarian Man Sentenced for Conspiring to Use Counterfeit Access DevicesRead 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 Petar Petrov, 42, a citizen of Bulgaria who resides Mississauga, Ontario, Canada, who was convicted of conspiracy to possess and use counterfeit access devices with intent to defraud, was sentenced to three months in prison, by Chief U.S. District Judge William M. Skretny. In addition, the defendant was ordered to pay restitution in the amount of $20,176.27 to the Royal Bank of Canada and $66,795.74 to the Canadian Imperial Bank of Commerce.Assistant U.S. Attorney John E. Rogowski, who handled the case, stated that the defendant was arrested on September 2, 2013, as he entered the United States from Canada at the Lewiston Bridge. A Customs and Border Patrol officer found ten counterfeit access devices in Petrov’s car. The devices were gift cards which had been altered by having legitimate credit card numbers imbedded in the magnetic strips on the back of the cards. Agents determined that all 10 cards were counterfeit. The defendant and a co-conspirator placed “skimming devices” on ATMs in Canada to obtain account information.
The scheme also involved the use of a surreptitiously placed camera to record the personal identification numbers (PINS) used by customers to transact business on the ATM’s. The account information was then placed on the magnetic strips of various gift cards, creating counterfeit access devices. Petrov also used several counterfeit access devices in the Buffalo area between July and September 2013 to withdraw money from various bank accounts in Canadian Banks.
“This case is yet another reminder of how important it is to protect your personal accounts and credit cards,” said U.S. Attorney Hochul. “Criminals will go to any lengths, including the use of cameras, to steal your personal information. Information on how to protect one’s identity and finances can be found at www.stopfraud.gov.”
Co-conspirator Evgeniy Bandarmiliev is also charged with conspiracy to possess and use counterfeit access devices with intent to defraud. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation on the part of Special Agents of the Immigration and Customs Enforcement, Homeland Security, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge.
Brothers Sentenced for Food Stamp Fraud SchemeRead the Press Release
Two brothers, one a resident of Carnegie, Pa., and the other a resident of Greentree, Pa., have each been sentenced in federal court to two years’ probation with six months of home detention on their convictions of conspiracy to commit food stamp fraud, United States Attorney David J. Hickton announced today. The defendants were also ordered to pay restitution of $199,605.38 pursuant to related Civil Settlement Agreements entered into by the defendants and the United States.
Senior United States District Judge Maurice B. Cohill imposed the sentences on Wesam Ibrahim, 41, of Carnegie, Pa., and Hadi Ibrahim, 43, of Greentree, Pa.
According to information presented to the court, the Ibrahim brothers co-own and operate City News & Arcade, a convenience store located on Wood Street in Pittsburgh, Pa. City News participated in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the food stamp program. Food stamp recipients could purchase eligible food items using food stamp benefit cards at City News. As owners and operators of City News, the defendants were aware that food stamp program rules prohibited the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, the defendants exchanged customers’ food stamp benefits for cash on a discounted basis, usually giving customers only .50 cents on the dollar for food stamp benefits. The defendants also permitted food stamp customers to purchase ineligible non-food items, such as cigarettes, with food stamp benefits.
Judge Cohill stated that the sentences imposed were sufficient but not greater than necessary to achieve the ends of justice.
Assistant United States Attorney Tonya Sulia Goodman prosecuted these cases on behalf of the government. Assistant United States Attorney Colin Callahan litigated these cases on behalf of the Affirmative Civil Enforcement Section of the United States Attorney's Office.
U.S. Attorney Hickton commended the Office of the Inspector General for the United States Department of Agriculture along with Homeland Security Investigations for the investigation leading to the successful prosecution of the Ibrahim brothers.
Brooklyn Man Pleads Guilty to Murder to Obstruct Bank Fraud InvestigationRead the Press Release
Yesterday, Naquan Reyes pled guilty at the federal courthouse in Brooklyn, New York, to murdering Nicole Thompson to prevent her from communicating with federal law enforcement officials who were investigating a bank fraud conspiracy. According to court filings and facts presented during the plea proceeding, Reyes paid another individual to murder Ms. Thompson to prevent her from cooperating with law enforcement and undermining a lucrative and long-standing scheme to defraud banks in the New York area. During yesterday’s proceeding, Reyes also pled guilty to bank fraud conspiracy.
The plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Robert J. Sica, Special Agent-in-Charge, United States Secret Service, New York Field Office.
“The murder of Nicole Thompson was the result of a truly shocking combination of greed and violence,” stated United States Attorney Lynch. “We hope her family can take some measure of solace in knowing that the individual who is responsible for their daughter’s murder has been brought to justice. This Office and our law enforcement partners will do anything in our power to hold accountable those who use violence to silence witnesses or otherwise obstruct justice.” Ms. Lynch expressed her grateful appreciation to the Prince George’s County, Maryland Police Department, New York City Police Department, and Bronx County District Attorney’s Office for their significant cooperation and assistance in the investigation.
As alleged in the detention memorandum and during a detention hearing, between 2008 and his arrest in 2014, Reyes perpetrated a scheme to defraud various banks. As part of the scheme, Reyes secured employment at more than half a dozen banks and, relying in part on knowledge he acquired from his employment, Reyes created counterfeit checks and recruited others to deposit those checks into their and others’ bank accounts. Reyes and his coconspirators then attempted to withdraw the funds from the bank accounts before the banks learned the checks were counterfeit. Among those he recruited to make the deposits was Nicole Thompson. On July 16, 2010, Thompson was arrested by the New York City Police Department in connection with her role in the scheme, and she immediately decided to cooperate with law enforcement. When Reyes learned of Thompson’s plans to cooperate and thereby jeopardize his ongoing fraud scheme, Reyes paid another individual to murder her and then traveled from New York to Maryland to dispose of her body. On July 24, 2010, Thompson’s body, duct taped and wrapped in garbage bags, was found in a dumpster in Landover, Maryland. Thompson was 24 years old at the time of her murder.
Yesterday’s plea took place before United States District Judge Sandra L. Townes. When sentenced, Reyes faces up to life in prison, as well as forfeiture and a fine of up to $1,000,000.
The government’s case is being prosecuted by Assistant United States Attorneys Elizabeth Kramer, Elizabeth Geddes, Samuel Nitze, and Karin Orenstein.
The Defendant:
NAQUAN REYES
Age: 29
Brooklyn, NY
E.D.N.Y. Docket No. 14-CR-0227
Bronx Man Sentenced for Distributing Crack CocaineRead the Press Release
ALBANY, NEW YORK – HECTOR MORALES, 36, of the Bronx, was sentenced today by the Honorable Gary L. Sharpe to thirty years in federal prison, announced United States Attorney Richard S. Hartunian and Drug Enforcement Administration Special Agent in Charge James J. Hunt. Additionally, the judge imposed a term of twenty years of supervised release upon release from incarceration. MORALES has a prior drug felony conviction and, therefore, was subject to increased penalties.
In November 2011, a jury convicted MORALES of conspiracy to possess with the intent to distribute more than 280 grams of crack cocaine. At the trial, the government offered evidence that between January and September 2010, MORALES conspired with several individuals to sell large quantities of cocaine and crack in Troy and Plattsburgh. Two co-defendants, Nelson Cordero and Anthony Cordero, pled guilty prior to the trial, and were sentenced in 2012.
"The scourge of illegal drugs in our communities is intolerable," said United States Attorney Richard S. Hartunian. "Use of addictive drugs like crack cocaine is devastating. My office will work with our federal, state and local partners to continue our efforts to rid our streets of these substances."
The investigation of this case was the result of a joint investigation between the Drug Enforcement Administration (DEA), the Plattsburgh Police Department, the New York State Troopers and the Rensselaer Country Drug Task Force. The case was prosecuted by Assistant United States Attorneys Daniel C. Gardner and Elizabeth R. Rabe.
Bronx Man Convicted for Distributing Crack CocaineRead the Press Release
Conspired to sell cocaine and crack in the Troy and Plattsburgh areas
ALBANY, NEW YORK – HECTOR MORALES, 36, of the Bronx, was sentenced today by the Honorable Gary L. Sharpe to thirty years in federal prison, announced United States Attorney Richard S. Hartunian and Drug Enforcement Administration Special Agent in Charge James J. Hunt. Additionally, the judge imposed a term of twenty years of supervised release upon release from incarceration. MORALES has a prior drug felony conviction and, therefore, was subject to increased penalties.
In November 2011, a jury convicted MORALES of conspiracy to possess with the intent to distribute more than 280 grams of crack cocaine. At the trial, the government offered evidence that between January and September 2010, MORALES conspired with several individuals to sell large quantities of cocaine and crack in Troy and Plattsburgh. Two co-defendants, Nelson Cordero and Anthony Cordero, pled guilty prior to the trial, and were sentenced in 2012.
"The scourge of illegal drugs in our communities is intolerable," said United States Attorney Richard S. Hartunian. "Use of addictive drugs like crack cocaine is devastating. My office will work with our federal, state and local partners to continue our efforts to rid our streets of these substances."
The investigation of this case was the result of a joint investigation between the Drug Enforcement Administration (DEA), the Plattsburgh Police Department, the New York State Troopers and the Rensselaer Country Drug Task Force. The case was prosecuted by Assistant United States Attorneys Daniel C. Gardner and Elizabeth R. Rabe.
Attorney General Holder to Hold Building Community Trust Roundtable Discussion in OaklandRead the Press Release
SAN FRANCISCO – As part of the Obama Administration’s commitment to building trust between law enforcement and the communities they serve, Attorney General Eric Holder will travel to Oakland on THURSDAY, FEBRUARY 5, 2015, to participate in a Building Community Trust roundtable discussion. The roundtable will serve as an opportunity to bring law enforcement, elected officials and members of the community together to discuss next steps that the administration will take to improve relationships between law enforcement and the community, address concerns about violence directed at law enforcement, increase the integrity within our justice system and share best practices for policing. In the afternoon, Attorney General Holder will meet with students, police academy recruits, and local police officers on building community trust at the Willie Mays Boys & Girls Club. Following the meeting, the Attorney General will tour the Boys & Girls Club, which is known for community-based programs that foster mentorship, collaborative relationships between young people and law enforcement.
The roundtable in Oakland marks the Attorney General’s sixth Building Community Trust roundtable discussion. The other roundtables were held in Atlanta, Cleveland, Memphis, Chicago and Philadelphia.
ATTORNEY GENERAL HOLDS BUILDING COMMUNITY TRUST ROUNDTABLE DISCUSSION IN OAKLAND:
WHO: Attorney General Eric Holder
U.S. Attorney Melinda Haag for the Northern District of California
U.S. Congresswoman Barbara Lee
Mayor Libby Schaaf of Oakland WHEN: THURSDAY, FEBRUARY 5, 2015
9:30 a.m. PST WHERE: Ronald V. Dellums Federal Building and U.S. Courthouse
1301 Clay Street
North Tower Entrance – 5th Floor
Oakland, CA 94612 PHOTO SPRAY AT THE TOP (Media Access/Check-in: 8:30 a.m. PST. Media Pre-Set: 8:45 a.m. PST. Final Access: 9:00 a.m. PST. All media must proceed to the 5th Floor for check-in and pre-set.)NOTE: All media must present government-issued photo I.D. (such as a driver’s license as well as valid media credentials). Members of the media must RSVP to [email protected] by Wednesday, Feb. 4, 2015, at 5:00 p.m. EST. Media planning to cover the event should arrive no later than 9:00 a.m. PST. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to Kevin Lewis at [email protected] and Meki Bracken at [email protected].
ATTORNEY GENERAL HOLDS MEETING WITH STUDENTS AND POLICE OFFICERS ON BUILDING COMMUNITY TRUST AND TOURS THE WILLIE MAYS BOYS & GIRLS CLUB OF SAN FRANCISCO:
WHO: Attorney General Eric Holder WHEN: THURSDAY, FEBRUARY 5, 2015
2:30 p.m. PST WHERE: Boys & Girls Club of San Francisco
195 Kiska Road
San Francisco, CA 94124 PHOTO SPRAY AT THE TOP (Media Access/Check-in: 1:30 p.m. PST. Media Pre-Set: 1:45 p.m. PST. Final Access: 2:00 p.m. PST.)NOTE: All media must present government-issued photo I.D. (such as a driver’s license as well as valid media credentials). Members of the media must RSVP to [email protected] by Wednesday, Feb. 4, 2015, at 5:00 p.m. EST. Media planning to cover the event should arrive no later than 2:00 p.m. PST. There will be limited access to the tour following the meeting. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to Kevin Lewis at [email protected] and Meki Bracken at [email protected].
Army National Guard Official Pleads Guilty for Accepting $30,000 BribeRead the Press Release
An Army National Guard official pleaded guilty today for accepting a $30,000 bribe in exchange for steering a $3.6 million contract to a retired sergeant major of the Minnesota Army National Guard and his consulting company. Today’s guilty plea is the eighth in connection with an investigation into corruption within the National Guard Bureau related to the awarding of millions of dollars of Army National Guard marketing, retention and recruitment contracts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge Andrew McCabe of the FBI’s Washington Field Office, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Director Frank Robey of the U.S. Army Criminal Investigative Command’s Major Procurement Fraud Unit (Army-CID) made the announcement.
Jason Rappoccio, 39, of Hampton, South Carolina, pleaded guilty before U.S. District Judge Liam O’Grady of the Eastern District of Virginia to one count of conspiracy to commit bribery and one count of bribery. Rappoccio was indicted on Sept. 25, 2014, and will be sentenced on May 22, 2015.
According to plea documents, Rappoccio, who was an active duty sergeant first class in the Army National Guard, admitted to accepting a $30,000 bribe from Timothy Bebus, a retired sergeant major of the Minnesota Army National Guard and owner of Mil-Team Consulting and Solutions LLC (Mil-Team). In exchange, Rappoccio agreed to recommend the award of a $3.6 million contract to Mil-Team and to steer the contract to a Small Business Administration (SBA) 8(a) certified company, chosen by Bebus, that would sub-contract the work to Mil-Team.
Rappoccio admitted that he received the $30,000 bribe in installments to conceal the payment. Bebus gave $6,000 in cash directly to Rappoccio at a meeting in Arlington, Virginia. The remaining $24,000 was paid in a cashier’s check in the name of Rappoccio’s wife.
Rappoccio also admitted that days after receiving the $30,000 bribe, he solicited and received airline tickets for two of his family members from Bebus. Three months later, Rappoccio also received NFL tickets worth $1,328 from another co-conspirator. At the time that he accepted these additional benefits, Rappoccio agreed to steer an additional $4 million contract to Bebus and his company.
The case is being investigated by the FBI’s Washington Field Office, with assistance from DCIS’s Mid-Atlantic Field Office and Army-CID’s Expeditionary Fraud Resident Agency’s Major Procurement Fraud Unit. The case is being prosecuted by Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Assistant U.S. Attorney Jonathan Fahey of the Eastern District of Virginia and Assistant U.S. Attorneys Marisa Seifan and Martin Coffey of the Eastern District of New York.
Army National Guard Official Pleads Guilty for Accepting $30,000 BribeRead the Press Release
WASHINGTON – An Army National Guard official pleaded guilty today for accepting a $30,000 bribe in exchange for steering a $3.6 million contract to a retired sergeant major of the Minnesota Army National Guard and his consulting company. Today’s guilty plea is the eighth in connection with an investigation into corruption within the National Guard Bureau related to the awarding of millions of dollars of Army National Guard marketing, retention and recruitment contracts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge Andrew McCabe of the FBI’s Washington Field Office, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Director Frank Robey of the U.S. Army Criminal Investigative Command’s Major Procurement Fraud Unit (Army-CID) made the announcement.
Jason Rappoccio, 39, of Hampton, South Carolina, pleaded guilty before U.S. District Judge Liam O’Grady of the Eastern District of Virginia to one count of conspiracy to commit bribery and one count of bribery. Rappoccio was indicted on Sept. 25, 2014, and will be sentenced on May 22, 2015.
According to plea documents, Rappoccio, who was an active duty sergeant first class in the Army National Guard, admitted to accepting a $30,000 bribe from Timothy Bebus, a retired sergeant major of the Minnesota Army National Guard and owner of Mil-Team Consulting and Solutions LLC (Mil-Team). In exchange, Rappoccio agreed to recommend the award of a $3.6 million contract to Mil-Team, and to steer the contract to a Small Business Administration (SBA) 8(a) certified company, chosen by Bebus, that would sub-contract the work to Mil-Team.
Rappoccio admitted that he received the $30,000 bribe in installments to conceal the payment. Bebus gave $6,000 in cash directly to Rappoccio at a meeting in Arlington, Virginia. The remaining $24,000 was paid in a cashier’s check in the name of Rappoccio’s wife.
Rappoccio also admitted that days after receiving the $30,000 bribe, he solicited and received airline tickets for two of his family members from Bebus. Three months later, Rappoccio also received NFL football tickets worth $1,328 from another co-conspirator. At the time that he accepted these additional benefits, Rappoccio agreed to steer an additional $4 million contract to Bebus and his company.
The case is being investigated by the FBI’s Washington Field Office, with assistance from DCIS’s Mid-Atlantic Field Office and Army-CID’s Expeditionary Fraud Resident Agency’s Major Procurement Fraud Unit. The case is being prosecuted by Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Assistant U.S. Attorney Jonathan Fahey of the Eastern District of Virginia and Assistant U.S. Attorneys Marisa Seifan and Martin Coffey of the Eastern District of New York.
2 February 2015
“Operation Yeti ICE” Defendants Enter Guilty Pleas in Federal CourtRead the Press Release
Jackson, Miss – Seven individuals who were indicted as a result of DEA’s "Operation Yeti Ice" investigation have entered guilty pleas before U.S. District Judge Dan Jordan III, U.S. Attorney Gregory K. Davis announced today.
AOperation Yeti Ice@ is an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation, which began as an operation targeting illegal narcotics distribution in central Mississippi. The drug network involved the distribution of over 100 Kilograms of Methamphetamine and encompassed the states of California and Mississippi.
Jennifer Higgins McLemore, 35, of Pearl, pled guilty on January 28, 2015 to conspiracy to possess with intent to distribute more than 50 grams of methamphetamine. She will be sentenced on April 21, 2015 and faces a maximum penalty of life in prison and a maximum fine of $10 million.
Walter Pernillo, 42, of San Bernardino, California, pled guilty on January 28, 2015 to conspiracy to possess with intent to distribute more than 50 grams of methamphetamine. He will be sentenced on April 21, 2015 and faces a maximum penalty of life in prison and a maximum fine of $10 million.
Terry Garth, 35, of Newton, pled guilty on January 28, 2015 to conspiracy to possess with intent to distribute methamphetamine and felon in possession of a firearm. He will be sentenced on April 21, 2015 and faces a maximum penalty of twenty years in prison for the conspiracy charge, ten years in prison for the firearm charge, and a maximum fine of $1 million.
Steven Ochoa, 29, of San Bernardino, California, pled guilty on January 29, 2015 to conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. He will be sentenced on April 20, 2015 and faces a maximum sentence of life in prison, and a $10 million fine.
Jennifer Toole Kidd, 30, of Newton, pled guilty on January 30, 2015 to conspiracy to possess with intent to distribute methamphetamine. She will be sentenced on April 20, 2015 and faces a maximum penalty of twenty years in prison and a $1 million fine.
Jakeivia Fairley, 24, of San Bernardino, California, pled guilty on January 30, 2015 to conspiracy to possess with intent to distribute methamphetamine. She will be sentenced on April 20, 2015 and faces a maximum penalty of 20 years in federal prison and a $1 million fine.
Beatrice Williams McEntee, 56, of Forest, pled guilty on February 2, 2015 to conspiracy to possess with intent to distribute methamphetamine. She will be sentenced on April 23, 2015 and faces a maximum sentence of 20 years in federal prison and a $1 million fine.
This OCDETF operation was led by the Drug Enforcement Administration and the Mississippi Bureau of Narcotics with assistance from the U.S. Marshal Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Postal Service, Internal Revenue Service Criminal Investigation, Scott County Sheriff’s Office, Leake County Sherriff’s Office, Madison County Sherriff’s Office, Carthage Police Department, Forest Police Department, Newton County Sherriff’s Office, Lauderdale County Sherriff’s Office, Decatur Police Department, Richland Police Department, Pearl Police Department, Ridgeland Police Department, and the Jackson Police Department. Assistant U.S. Attorney Erin Chalk is prosecuting the case.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
York Men Affiliated with Latin Kings Street Gang Enter Guilty Pleas to Puerto Rico-York Drug Trafficking and Firearms OffensesRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that three men have entered guilty pleas to drug trafficking and firearms offenses for their roles in the importation from Puerto Rico and distribution of kilograms of heroin and cocaine into York, Pennsylvania.
According to United States Attorney Peter Smith, on January 29, 2015, Angel Mendez-Castro, age 27, of Puerto Rico and York, entered a guilty plea to conspiracy to import and distribute over five kilograms of cocaine and heroin from 2010 to 2013. Mendez-Castro also admitted to using threats of violence against witnesses and firearms to protect the trafficking between Puerto Rico and York. The maximum penalty for the offense is a ten-year mandatory sentence and a maximum punishment of life in prison.
The Mendez-Castro guilty plea is the culmination of multi-year investigation by the Pennsylvania State Police and the York County Drug Task Force, conducted with the assistance of the Federal Bureau of Investigation. The investigation involved hundreds of purchases of heroin, cocaine, and crack cocaine made from over one hundred individuals in York. Many of the individuals involved in the conspiracy were arrested in a sweep that began on February 6, 2013, in York County. Thereafter, 15 individuals were indicted by a federal grand jury in Harrisburg for leadership roles in the heroin and cocaine trafficking.
On January 29, 2015, Angel Mendez-Castro’s brother and cousin entered guilty pleas. Christian Mendez-Castro, a/k/a “King Rampage,” age 22, of Puerto Rico and York, entered a guilty plea to drug trafficking conspiracy. Hector Castro-Padro, a/k/a “Fernando,” age 29, of York, entered a plea to drug trafficking and firearms offenses. A sentencing date for these three defendants has not been set by the U.S. District Court Judge Yvette Kane.
As part of the overall investigation, the United States Attorney’s Office charged others affiliated with the distribution of heroin and cocaine in York. The status of the other cases is as follows:
William Ortiz, age 53, of York, pleaded guilty to drug trafficking. On August 21, 2014, he was sentenced to 10 years in prison.
Luis Angel Ortiz, a/k/a “C Lo,” age 31, of York, pleaded guilty to drug trafficking. On April 15, 2014, he was sentenced to twelve (12) years and six (6) months in prison.
Jose Cartegena, Jr., a/k/a “Warrior,” age 35, of York, pleaded guilty to drug trafficking. On April 28, 2014, he was sentence to 60 months in prison.
Marcus Garcia, a/k/a “King Paradise,” age 28, of York, pleaded guilty to drug trafficking. On September 5, 2014, he was sentenced to six (6) years and five (5) months in prison.
David Ramsey, a/k/a “King Knuckles,” age 32, of York, pleaded guilty to drug trafficking. On December 9, 2014, he was sentenced to five (5) years in prison.
Carlos Villalongo-Martinez, age 38, of York, pleaded guilty to drug trafficking. On July 29, 2014, he was sentenced to two (2) years in prison.
Brandon Jones, age 27, of York, pleaded guilty to drug trafficking. On June 3, 2014, he was sentenced to six (6) years in prison.
Antonio Navarro-Garcia, a/k/a “King Trigger,” age 22, of York, pleaded guilty to drug trafficking. On November 25, 2014, he was sentenced to five (5) years in prison.
Michael Enriquez, a/k/a “King Rage,” age 30, of Camden, New Jersey, pleaded guilty to drug trafficking. On January 27, 2015, he was sentenced to ten (10) years in prison.
Hector Rengifo, age 40, of York, pleaded guilty to drug trafficking on August 4, 2014. He is awaiting sentencing.
August Ranalli, age 31, and Daniel Pacheco-Morels, age 41, both of York, are scheduled for trial on March 31, 2015.
Prosecution of the cases is assigned to Assistant United States Attorney Michael A. Consiglio.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is life imprisonment for the defendants and a term of supervised release following imprisonment and a fine. Each defendant also faces a mandatory minimum period of incarceration of ten years. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Windsor, Ontario, Canada - Man was Sentenced to Serve 6 Months in Prison for Illegally Reentering the United States Following RemovalRead the Press Release
ALBANY, NEW YORK – Ryszard Lachowicz (57, of Windsor, Ontario, Canada) was sentenced Thursday, January 29, 2015, to serve 6 months in prison by Senior United States District Court Judge Lawrence E. Kahn announced United States Attorney Richard S. Hartunian and Patrol Agent in Charge Dennis O’Neill of United States Border Patrol, Burke Station. In November, Lachowicz pled guilty to illegally reentering the United States following removal, a felony under federal law. Following the completion of the term of imprisonment, the Department of Homeland Security will process Lachowicz for removal from the United States.
In October 2014, Lachowicz was arrested by United States Border Patrol Agents after he was detected riding a moped around the Chateaugay Port of Entry thereby avoiding immigration and customs inspection. Lachowicz had been previously removed to Canada twice in 1999 and again in May 2014.
The case was investigated by the United States Border Patrol, Burke, NY, and prosecuted by Assistant United States Attorney Edward P. Grogan.
Wheeling, WV woman sentenced for selling cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Krista Dennis, 28, of Wheeling, West Virginia, was sentenced today to 11 months in prison for selling crack cocaine near a protected location, United States Attorney William J. Ihlenfeld, II announced.
An investigation by the Benwood, West Virginia Police Department, the Marshall County Drug and Violent Crime Task Force, and the Ohio Valley Drug and Violent Crime Task Force revealed that Dennis sold crack cocaine in July 2014 within 1,000 feet of a protected location. Both task forces are HIDTA-funded initiatives.
Dennis pled guilty in December 2014 to one count of “Distribution of Cocaine Base Near a Protected Location.”
Assistant U.S. Attorney Robert McWilliams is prosecuting the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
West Fargo Man Sentenced for Child PornographyRead the Press Release
FARGO - U. S. Attorney Timothy Q. Purdon announced that on Feb. 2, 2015, Peter Alan Karl, 52, West Fargo, N.D., was sentenced before U. S. District Judge Ralph R. Erickson to serve six years in prison for the receipt of materials involving the sexual exploitation of minors. Judge Erickson also sentenced Karl to a lifetime period of supervised release following his incarceration and ordered him to pay a $100 special assessment to the Crime Victims Fund.
This case came to the attention of Law Enforcement after it was discovered that the defendant was communicating with individuals who had a sexual interest in children via a website hosted outside the United States. Eventually, Law Enforcement obtained search warrants for Karl’s email accounts and residence where investigators found both electronic and hard-copy images of child pornography depicting prepubescent children.
The case was investigated by Homeland Security Investigations and the North Dakota Bureau of Criminal Investigations and West Fargo Police Department.
Assistant U. S. Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood in conjunction with Internet Crimes Against Children Task Force (ICAC) help Federal, State and Local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations and criminal prosecutions. Project safe childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Utica Man Indicted on Two Counts of Bank RobberyRead the Press Release
ALBANY, NEW YORK - On January 30, a grand jury in the Northern District of New York returned an indictment charging CALVIN STEPHON MOORE (49, of Utica) with two counts of bank robbery, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation. If convicted, MOORE faces up to 20 years of imprisonment, three years of supervised release, a $250,000 fine, and special assessments of $200.
According to the indictment, on November 17, 2014, Moore told a KeyBank employee at 1610 Eastern Parkway in Schenectady, New York that he was holding up the bank and took $5,035. The indictment also alleges that on November 18, 2014, Moore gave an Adirondack Bank employee at 185 Genesee Street in Utica, New York a note that said in part “THIS IS A ROBBERY. I HAVE A GUN AND WILL SHOOT IF YOU TRY ANYTHING. PUT ALL THE LOOSE BILLS (EVERY DENOMINATION) IN THE BAG … NO DYE PACK OR TRACERS OR I WILL SHOOT!,” and took $1,647.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Moore was arrested on December 30, 2014 in Cayce, South Carolina, by police officers from the Cayce Police Department, with assistance from the Columbia, South Carolina Police Department and the Columbia Division of the FBI. The U.S. Marshals Service is in the process of transporting Moore back to the Northern District of New York.
This prosecution resulted from an investigation conducted by the Albany Division of the Federal Bureau of Investigation, and the Schenectady and Utica Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Barnett.