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22 January 2015
Princeton man pleads guilty to possession of child pornographyRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that Lindsey Dale Bowling, 30, of Princeton, West Virginia, pleaded guilty to possession of child pornography.
Bowling admitted that on Nov. 22, 2013, he possessed images and videos of prepubescent minors engaged in sexual acts. The images were contained on his personal computer, as well as on multiple storage disks located in his residence in Princeton.
Bowling faces up to 20 years in federal prison. He is scheduled to be sentenced on May 28, 2015.
Senior United States District Judge David A. Faber presided over the plea hearing.
The case is being investigated by the West Virginia Internet Crimes Against Children Task Force and the Mercer County Sheriff’s Department. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case is being prosecuted as part of the U.S. Attorney’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District.
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Owners & Managers of Former Salvage Operations at Former Textile Plant in Tennessee Sentenced to Prison for Conspiracy Associated with Illegal Asbestos RemovalRead the Press Release
U.S. District Judge Ronnie Greer sentenced five people to prison terms in federal court in Greeneville, Tennessee, late yesterday for conspiring to commit Clean Air Act offenses in connection with the illegal removal and disposal of asbestos-containing materials at the former Liberty Fibers Plant in Hamblen County, Tennessee, the Justice Department announced. A&E Salvage had purchased the plant out of bankruptcy in order to salvage metals which remained in the plant after it ceased operations.
U.S. District Judge Greer sentenced Mark Sawyer, 55, of Morristown, Tennessee, a former manager of A&E Salvage, to the statutory maximum of five years in prison, to be followed by two years of supervised release. A&E Salvage manager Newell Lynn Smith, 59, of Miami, Florida, was sentenced to 37 months and two years of supervised release. A&E Salvage Manager Eric Gruenberg, 50, of Lebanon, Tennessee, received a 28-month sentence. Armida, 56, and Milto DiSanti, 54, of Miami, Florida, each received sentences of six months in prison, to be followed by six months of home confinement. The judge ordered all the defendants to pay restitution of more than $10.3 million, which will be returned to Environmental Protection Agency’s (EPA) Superfund, which was used to clean up the plant site contamination.
The sentencing took place over three days and included expert testimony that the exposures of the A&E Salvage workers to asbestos resulted in a substantial likelihood that the workers would suffer death or serious bodily injury as a result of their exposure constituted a risk of death or serious bodily injury.
“These co-conspirators took unacceptable and illegal risks with workers lives and the community’s health,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “These significant sentences should send a message that illegal asbestos removal can have serious consequences, including a prison term for those responsible.”
According to court documents, all the defendants pleaded guilty to one criminal felony count for conspiring to violate the Clean Air Act’s “work practice standards” salient to the proper stripping, bagging, removal and disposal of asbestos. According to the charges, the conspirators, engaged in a multi-year scheme in which substantial amounts of regulated asbestos containing materials were removed the former Liberty Fibers plant without removing all asbestos prior to demolition and stripping, bagging, removing and disposing of such asbestos in illegal manners and without providing workers the necessary protective equipment. Asbestos has been determined to cause lung cancer, asbestosis and mesothelioma, an invariably fatal disease. The EPA has determined that there is no safe level of exposure to asbestos.
“We take our responsibility to protect the environment of East Tennessee very seriously, especially when it involves the health and safety of its residents,” said U.S. Attorney Bill Killian of the Eastern District of Tennessee. “We will continue to aggressively prosecute those who violate the laws restricting substances which can potentially cause serious diseases. EPA, TDEC, Senior Trial Attorney Todd Gleason and Assistant U.S. Attorney Matthew Morris should be commended for their combined efforts which resulted in a successful outcome in this case.”
“Illegal disposal of asbestos endangers human health, plain and simple,” said Special Agent in Charge Maureen O’Mara of EPA’s Criminal Enforcement Program in Tennessee. “The defendants conspired to violate the Clean Air Act by hiring untrained workers to remove materials, without proper safety equipment, that contained asbestos. This put not only the workers’ health and safety at great risk, but that of the entire community. Today’s sentencing demonstrates that EPA and its partner agencies will prosecute those who pollute the environment by breaking the law.”
This case was investigated by Special Agents of the Environmental Protection Agency and individuals from the Tennessee Department of Environmental Conservation. The case was prosecuted by Assistant U.S. Attorney Matthew T. Morris and Senior Trial Attorney Todd W. Gleason, Environmental Crimes Section of the Department of Justice.
Owner of Convenience Store Sentenced for Food Stamp Fraud SchemeRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for Guam and the Northern Mariana Islands, announced that defendant KUN SUP SONG, age 57, was sentenced yesterday by Chief Judge Frances Tydingco-Gatewood in the District Court of Guam, to serve five years of probation with conditions to include eight months of home confinement, and to pay $170,021 in restitution to the U.S. Department of Agriculture’s (“USDA”) Food and Nutrition Service. Also, Judge Tydingco-Gatewood ordered a $70,000 money judgment of forfeiture; and the forfeiture of approximately $38,000 and a Toyota 4Runner involved in the fraud which had been seized by the Federal Bureau of Investigation. SONG owned and operated Sky Mart, a small convenience store in Yigo. He pleaded guilty on March 27, 2014 to unauthorized use of food stamp benefits.
SONG’s store participated in the Supplemental Nutrition Assistance Program (“SNAP”), previously known as the Food Stamp Program. Under SNAP, authorized recipients are issued a certain amount of benefits each month, which they may use to purchase eligible food items. SNAP recipients receive their benefits in the form of a credit on their personal electronic benefit transfer (“EBT”) card. SNAP benefits may not be used to purchase ineligible items, and cannot be redeemed for cash, loans, or items sold on credit.
U.S. Attorney Limtiaco states "Opportunistic store owners who take advantage of our low-income population, by adding interest for items bought on credit, unlawfully take monies that food stamp card holders could have used on food. Food stamp card holders cannot be discriminated against by charging them interest. Retailers who do not follow SNAP regulations by concealing they are selling items on credit, or redeeming food stamp cards for cash or loans, will not be tolerated and are subject to criminal prosecution."
From January 1, 2011 to August 4, 2013, the defendant engaged in a scheme to defraud and fraudulently obtain money in excess of $170,000 from the USDA. The defendant used his business to redeem SNAP benefits in exchange for extending credit to SNAP recipients, and payment on their credit accounts with Sky Mart. The defendant also redeemed SNAP benefits for ineligible purchases made by customers. As part of the scheme, the defendant engaged in fictional and illegal transactions with SNAP recipients that purported to be for eligible food items.
Through the hard work of the Federal Bureau of Investigation and USDA Office of Inspector General's Office, in August 2013, law enforcement were able to seize a portion of the proceeds of the fraud and a vehicle which helped facilitate the fraud.
U.S. Attorney Limtiaco stated, “The Court’s forfeiture order effectively results in taking the profit out of this food stamp fraud. The defendant's scheme to defraud involved the SNAP program, which is designed to supplement the income of eligible members of the community and ensure families can afford the groceries they need. When opportunistic retailers defraud the system, limited tax dollars are diverted from their intended use.”
The case was investigated by the Federal Bureau of Investigation and USDA Office of Inspector General. Assistants U.S. Attorney Marivic David and Belinda Alcantara prosecuted the case.
North Carolina men plead guilty to crack distributionRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that two North Carolina men pleaded guilty to distribution of crack cocaine.
Anthony Kearse, 39, of High Point, North Carolina, admitted that on Sept. 1, 2011, he sold crack cocaine to a confidential informant in exchange for $200 at an apartment building in Welch, West Virginia.
Chad Commander, 26, of High Point, North Carolina, admitted that on Dec. 2, 2011, he sold crack cocaine to a confidential informant in Welch.
Both men face up to 20 years in federal prison and a $1 million fine. They are scheduled to be sentenced on May 28, 2015.
Senior United States District Judge David A. Faber presided over the plea hearing.
The case is being investigated by the Drug Enforcement Administration, McDowell County Sheriff’s Office, Southern Regional Drug Task Force and the United States Marshals Service. Assistant United States Attorney John Frail is in charge of the prosecution.
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Newark Watershed Conservation and Development Corp. Contractor Admits Role in Bribery SchemeRead the Press Release
NEWARK, N.J. – A former contractor of the Newark Watershed Conservation and Development Corporation (NWCDC) today admitted his role in a bribery and kickback scheme involving an employee and consultant of the NWCDC, U.S. Attorney Paul J. Fishman announced.
James Porter, 78, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with one count of conspiring with Donald Bernard Sr., a former employee and consultant of the NWCDC, and others, to defraud the NWCDC and one count of tax evasion.
According to documents filed in this case and statements made in court: Between October 2008 and April 2013, Porter conspired with Bernard to provide Bernard and others with a stream of concealed, undisclosed kickbacks in exchange for Bernard’s assistance in securing business opportunities and payments to two companies operated by Porter: Jim P. Enterprises LLC (JPE) and New Beginnings Environmental Services (NBES), a company in which Bernard was also a partner. Both JPE and NBES purported to perform landscaping, snow removal, clean-up and sign posting services to the NWCDC from 2008 through 2013. JPE received payments from the NWCDC totaling more than $500,000 and NBES received approximately $290,000 from the NWCDC. Both companies submitted invoices to the NWCDC that were fraudulently inflated to cover kickback payments to Bernard and billed for some services, such as landscaping and snow removal, which were never performed.
Porter passed a stream of kickback payments to Bernard totaling more than $500,000, which was funded by the proceeds JPE and NBES obtained from the NWCDC, including cash withdrawn from the bank accounts of JPE and NBES totaling $378,867; Bernard’s use of an ATM card issued in his name to withdraw at least $74,681 directly from the NBES bank account; Bernard’s use of the NBES ATM card issued in Bernard’s name to pay personal expenses of nearly $5,000; and checks written from the accounts of JPE and NBES totaling $41,650, which were made payable to Bernard, or to companies he controlled, including a consulting company, Bernard & Associates, and the African American Heritage Parade Committee (AAHPC).
In August 2012, Porter also accepted a $5,000 check payable to JPE from Essex Home Improvements, another contractor of the NWCDC for work that was never performed, and delivered the proceeds to Bernard. The payment from Essex Home Improvements was provided to JPE, rather than to Bernard directly, as a means of concealing a kickback from Essex Home Improvements to Bernard. Bernard and Giacomo DeRosa, 58, a Clinton Township, New Jersey contractor, have been charged in separate indictments and are awaiting trial.
From 2009 to 2012, Porter failed to report income of $767,750 from the proceeds that JPE and NBES received from the NWCDC. Porter also pleaded guilty today to intentionally underreporting income for the 2012 tax year on his personal tax return by $151,603, resulting in tax due and owing of $48,971.
The conspiracy to defraud count and the tax evasion count to which Porter pleaded guilty each carry a maximum potential penalty of five years in prison and a fine of either $250,000 or twice the gain or loss from the offenses. The government is also seeking forfeiture of $573,333. Sentencing is scheduled for May 12, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi, as well as criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Mala Ahuja Harker of the U.S. Attorney’s Office Special Prosecutions Division.
The charges and allegations in the indictment against Bernard and DeRosa are merely accusations, and the defendants are considered innocent unless and until proven guilty.
15-030
Defense counsel: Anthony Mack Esq., NewarkNew York State Assembly Speaker Sheldon Silver Arrested on Corruption ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Richard Frankel, Special Agent-in-Charge of the Criminal Division of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that New York State Assembly Speaker SHELDON SILVER was arrested this morning on charges that he used his official position to receive nearly $4 million in bribes and kickbacks from people and businesses in exchange for his official acts, and that SILVER masked these payments from public view by disguising the payments as income from what he claimed was a law practice primarily focused on personal injury matters. SILVER was placed under arrest at the FBI in lower Manhattan, this morning, and is scheduled to appear before U.S. Magistrate Judge Frank Maas in Manhattan federal court later today. Judge Maas also issued seizure warrants to prevent SILVER from accessing approximately $3.8 million in proceeds alleged to be traceable to the charged corruption offenses until the case is resolved.
U.S. Attorney Preet Bharara said: “Over his decades in office, Speaker Silver has amassed titanic political power. But, as alleged, during that same time, Silver also amassed a tremendous personal fortune – through the abuse of that political power. All told, we allege that Silver corruptly collected some $4 million in bribes and kickbacks disguised as ‘referral fees.’ Those disguised bribes and kickbacks account for approximately two-thirds of all of Silver’s outside income since 2002.
“As today’s charges make clear, the show-me-the-money culture of Albany has been perpetuated and promoted at the very top of the political food chain. And as the charges also show, the greedy art of secret self-reward was practiced with particular cleverness and cynicism by the Speaker himself. Among other things, we allege that Sheldon Silver, Speaker of the New York State Assembly, was on retainer to a mammoth real estate developer at the very same time that the chamber he dominates was considering and passing legislation vitally affecting the bottom line of that developer; at the very same time that he was hearing out lobbyists paid by that developer and at the very same time that he was deliberately keeping secret from the public any information about this lucrative side-deal, in violation of the law.
“Politicians are supposed to be on the people’s payroll, not on secret retainer to wealthy special interests they do favors for. These charges go to the very core of what ails Albany – a lack of transparency, lack of accountability, and lack of principle joined with an overabundance of greed, cronyism, and self-dealing.”
FBI Special Agent-in-Charge Richard Frankel said: “As alleged, Silver took advantage of the political pulpit to benefit from unlawful profits. When all was said and done, he amassed nearly $4 million in illegitimate proceeds and arranged for approximately $500,000 in state funds to be used for projects that benefited his personal plans. We hold our elected representatives to the highest standards and expect them to act in the best interest of their constituents. In good faith, we trust they will do so while defending the fundamental tenets of the legal system. But as we are reminded today, those who make the laws don’t have the right to break the laws.”
According to the allegations contained in the Complaint unsealed today in Manhattan federal court:
For more than two decades, SHELDON SILVER has served as Speaker of the Assembly, a position that gives him significant power over the operation of New York State government. SILVER used this substantial power – including, in particular, his power over the real estate industry and his control over certain health care funding – to unlawfully enrich himself by soliciting and obtaining client referrals worth millions of dollars from people and entities in exchange for SILVER’s official acts, and attempting to disguise this money as legitimate outside income earned from his work as a private lawyer. In particular, SILVER claimed on financial disclosure forms required to be filed with New York State and in public statements that the millions of dollars he received in outside income while also serving as Speaker of the Assembly came from a Manhattan-based law firm, Weitz & Luxenberg P.C., where SILVER claimed to work “representing individual clients” in “personal injury actions.” These claims were materially false and misleading – and made to cover up unlawful payments SILVER received solely due to his power and influence as an elected legislator and the Speaker of the Assembly.
The scheme provided SILVER with two different streams of unlawful income: (i) approximately $700,000 in kickbacks SILVER received by steering two real estate developers with business before the state legislature to a law firm run by a co-conspirator, and (ii) more than $3 million in asbestos client referral fees SILVER received by, among other official acts, awarding $500,000 in state grants to a university research center of a physician who referred patients made ill by asbestos to SILVER at Weitz & Luxenberg.
Unlawful Income From the Real Estate Law Firm
SILVER entered into a corrupt relationship with a co-conspirator (“CC-1”) who had been SILVER’s counsel in the Assembly and operated a real estate law firm (the “Real Estate Law Firm”) that specialized in making applications to the City of New York to reduce taxes assessed on properties.
Beginning in at least 2000, SILVER approached two prominent developers of properties in Manhattan, one personally and one in part through a lobbyist, and asked the developers to hire the Real Estate Law Firm. The developers – both of whom lobbied SILVER on real estate issues because their profits depended significantly on state legislation favorable to their business– agreed to use the Real Estate Law Firm as SILVER had requested. Over the years, these developers paid millions of dollars in legal fees to the Real Estate Law Firm. SILVER received a cut from the legal fees amounting to nearly $700,000. SILVER had no public affiliation with the Real Estate Law Firm and performed no legal work at all to earn those fees, which were simply payments for SILVER having arranged the business through his official power and influence.
While continuing to receive the fees and in furtherance of the scheme, SILVER took official action beneficial to the developers. For example, while SILVER was publicly associated with advocating for tenants, a proposal made by the one of the developers who sent work to the Real Estate Law Firm was in substantial part enacted in real estate legislation in 2011 with SILVER’s support.
Unlawful Income From Asbestos Client Referrals
SILVER also entered into a corrupt arrangement with a leading physician who specialized in the treatment of asbestos-related diseases (“Doctor-1”) through which SILVER issued state grants and otherwise used his official position to provide favors to Doctor-1 so that Doctor-1 would refer and continue to refer his patients to SILVER at Weitz & Luxenberg, a firm with which SILVER was affiliated as counsel. Specifically, SILVER arranged for the State of New York to fund two state grants – each for $250,000, and paid out of a secret and unitemized pool of funds controlled entirely by SILVER – for a research center Doctor-1 had established. SILVER used his official position to provide Doctor-1 with other benefits as well, including helping to direct $25,000 in state funds to a not-for-profit organization for which one of Doctor-1’s family members served on the board, and asking the CEO of a second not-for-profit to hire a second family member of Doctor-1.
From 2002 to the present, SILVER received more than $3 million from legal fees Weitz & Luxenberg received from patients Doctor-1 had referred to SILVER at the firm while SILVER was taking official actions to benefit Doctor-1. SILVER did no legal work whatsoever on these asbestos cases, his sole role having been to use his official position and access to state funds to induce Doctor-1 to provide him with these lucrative referrals.
Silver’s Efforts to Cover Up the Scheme
SILVER took various efforts to disguise his unlawful outside income and prevent the detection of the scheme. SILVER listed on his official public disclosure forms that his outside income consisted of “limited practice of law in the principal subject area of personal injury claims on behalf of individual clients,” which was false and misleading. Beginning in 2010, SILVER’s disclosures changed to state that the source of his legal income was a “Law Practice” that “includ[ed]” being of counsel to Weitz & Luxenberg. SILVER never disclosed his relationship with the Real Estate Law Firm or any work beyond what he claimed was a “personal injury” practice.
SILVER also repeatedly made false statements about his outside income in his public statements, including the following:
- SILVER claimed he performed legal work consisting of spending several hours each week evaluating legal matters brought to him by potential clients and then referring cases that appeared to have merit to lawyers at Weitz & Luxenberg. In fact, SILVER did no such work on the asbestos cases and obtained those referrals to Weitz & Luxenberg based on his corrupt arrangement with Doctor-1.
- SILVER claimed his law practice involved the representation of “plain, ordinary simple people.” In fact, SILVER represented some of the largest real estate developers in the State of New York, whose interests are in many ways dependent on state legislation.
- SILVER claimed through his spokesperson that SILVER found clients by virtue of his having been a “lawyer for more than 40 years,” in a manner that was “not unlike any other attorney in this state, anywhere.” In fact, SILVER found his lucrative asbestos and real estate developer clients solely by virtue of his official position.
- SILVER recently stated through his spokesperson that “[n]one of his clients have any business before the state.” In fact, SILVER’s outside income included millions of dollars of fees obtained through real estate developers with significant business before the state and a prominent physician to whose benefit SILVER provided state funding and other benefits related to SILVER’s official position.
Finally, SILVER thwarted the Moreland Commission to Investigate Public Corruption so that it would not learn of his illegal outside income, first by filing legal motions on behalf of the Assembly and taking other action to block the Moreland Commission’s investigation into legislative outside income and then by negotiating with the Governor of New York to prematurely terminate the Moreland Commission.
SILVER, 70, of New York, New York, is charged with two counts of honest services fraud, one count of conspiracy to commit honest services fraud, one count of extortion under color of official right, and one count of conspiracy to commit extortion under color of official right. Each of these five counts carries a maximum penalty of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
U.S. Attorney Bharara praised the work of the Criminal Investigators of the United States Attorney’s Office and the FBI, who jointly conducted this investigation. Mr. Bharara also noted that the investigation is continuing.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Howard S. Master, Carrie H. Cohen, Andrew D. Goldstein, and James McDonald are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Sheldon Silver Complaint
U.S. v. Sheldon Silver Seizure AffidavitNew London Man Pleads Guilty to Federal Charge Related to 2012 HomicideRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDREW AVILES, 27, of New London, pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to a federal assault offense stemming from the September 2012 homicide of Javier Reyes, 36, of New London.
According to court documents and statements made in court, AVILES was an associate of a criminal organization that distributed marijuana, cocaine and other narcotics from the “Green Garages,” a series of garage bays located as 12/14 Walker Street in New London. In the summer of 2011, the leader of the Green Garages organization was the intended victim of a murder-for-hire plot orchestrated by former members of his enterprise in an attempt to take over narcotics distribution at the Green Garages. It is alleged that the leader of the organization orchestrated the assault of Javier Reyes to maintain his leadership position. AVILES and Jose Rosado, Jr. were hired to carry out the assault of Reyes in exchange for cash.
On the evening of September 12, 2012, Reyes was stabbed multiple times outside of his apartment at 187 Huntington Street in New London and died a short time later. He also had blunt force trauma to the back of his head.
Video surveillance at the time of the attack shows AVILES and Rosado, carrying a bat, creeping toward Reyes and then running away from him about 15 seconds later.
AVILES today admitted that he stabbed Reyes during the assault.
AVILES pleaded guilty to violating the Travel Act by using a facility in interstate commerce, namely a cellular telephone, with the intent to commit a crime of violence in furtherance of an unlawful activity, and thereafter committed the crime of violence.
At sentencing, AVILES faces a maximum term of imprisonment of life. A sentencing date has not been set.
On July 22, 2014, Rosado, 20, of New London, pleaded guilty to a related charge and also awaits sentencing.
AVILES and Rosado are currently detained.
The alleged leader of the Green Garages organization and the individual who allegedly recruited AVILES and Rosado have been indicted as a result of this investigation. U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the New London Police Department and the Federal Bureau of Investigation, with the assistance of the Connecticut State Police’s Eastern District Major Crime Squad, the Connecticut Department of Correction, Homeland Security Investigations, the U.S. Secret Service and the New London State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Sarah Karwan, and Senior Assistant State’s Attorney Paul Narducci.
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(203) 821-3722 [email protected]Muskogee Man Pleads Guilty to Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that STEVEN ALEX HUGHART, age 38, of Muskogee, Oklahoma, pled guilty to being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1) and Possession of a Firearm with a Removed, Obliterated, or Altered Serial Number, in violation of Title 18, United States Code, Sections 922(k) and 924(a)(1)(B).
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation. The defendant was indicted in September, 2014.
The Indictment alleges that on or about February 13, 2014, within the Eastern District of Oklahoma, the defendant having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, one .380 Jimenez Arms handgun, bearing an obliterated serial number, which had been shipped and transported in interstate commerce.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is up to 10 years imprisonment and/or up to a $250,000.00 fine. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
Mississippi Federal Court Bars Tax Preparer from Preparing Tax Returns for OthersRead the Press Release
A federal court in Greenville, Mississippi, has permanently barred Nathaniel Kimble from preparing federal income tax returns for others, the Justice Department announced today.
The civil injunction order, to which Kimble consented, was signed by Judge Debra M. Bowen of the U.S. District Court for the Northern District of Mississippi.
According to the complaint, from 2010 through the present, Kimble prepared tax returns under the business name Kimble Tax Services in Greenville, Mississippi. The complaint alleges that Kimble learned how to prepare tax returns by working with Alice Mobley. Mobley, who was sentenced to serve 75 months in prison after pleading guilty to three charges related to her tax return practices in Alabama, admitted in her criminal case that she conspired with workers of Kimble Tax Services to file tax returns she knew were fraudulent. In this regard, the complaint alleged that Kimble knowingly prepared federal income tax returns for customers that understated the customers’ tax liability and overstated refunds they claimed by inflating or fabricating earned income tax credits that his customers were not eligible to take.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014. 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. 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.
Mexican National Sentenced to 28 Months in Prison for Reentering the United States IllegallyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Mexican national was sentenced to 28 months in prison for reentering the United States illegally after being removed.
Luis Garcia-Torres, 44, of Mexico, was sentenced by U.S. District Judge Richard T. Haik for one count of aggravated reentry of a removed alien. According to evidence presented at the September 4, 2014 guilty plea, the defendant was driving a car that was pulled over on April 29, 2014 during a traffic stop. It was discovered that his identification belonged to another individual. He admitted to not being a U.S. citizen and returning to the United States multiple times illegally. He was deported in September of 1990 after being convicted of voluntary manslaughter in North Carolina. He also was deported in November of 2011 after serving a 10-year sentence for aggravated battery.
United States Immigrations and Customs Enforcement, Louisiana State Police, and Morgan City Police Department conducted the investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.
Mexican Man Gets 15 Years for Transporting Illegal Aliens Resulting in DeathRead the Press Release
McALLEN, Texas – Eduardo Moreno-Gonzalez, 22, a Mexican citizen illegally present in the U.S., has been ordered to federal prison following his conviction of transporting illegal aliens that resulted in the death of one of the aliens, announced U.S. Attorney Kenneth Magidson. Moreno-Gonzalez pleaded guilty Oct. 3, 2014.
At time of this offense, Moreno-Gonzalez was on supervised release for a previous conviction in another alien-transporting case in which he was driving the vehicle and lost control, resulting in a rollover. Today, U.S. District Judge Randy Crane revoked that supervised release as part of his 180-month sentence in this case. He is expected to face deportation proceedings following his prison sentence.
On April 2, 2014, Border Patrol (BP) agents observed a group of vehicles the agents suspected to be involved in illegal activity near San Isidro. Agents investigate further and observed the vehicles turn off onto a dirt and gravel road. When agents approached, they saw dust and dirt in the air and later saw taillights spinning in the dust. Upon arrival, they encountered Moreno-Gonzalez trapped under the vehicle he was driving, which had lost control and flipped. Moreno-Gonzalez was transporting 21 illegal aliens. In the crash, one of the aliens was ejected from the vehicle and died as a result.
Moreno-Gonzalez has been in federal custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and BP investigated the case, which was prosecuted by Assistant U.S. Attorney (AUSA) Joseph Leonard and former AUSA Grady J. Leupold.
Medical Device Company Manager Sentenced to Prison for Scheme to Defraud Hospitals of $800,000Read the Press Release
TRENTON, N.J. – A regional manager selling medical devices to hospitals for Integra LifeSciences Corp. of Plainsboro, New Jersey, was sentenced to prison today for his role in a scheme to defraud hospitals of more than $800,000, U.S. Attorney Paul J. Fishman announced.
Daniel Metz, 34, of Fairfield, New Jersey, was sentenced to nine months in prison and nine months of home confinement. Charles B. Carey Jr., 35, of Clark, New Jersey, whose cooperation led to Metz’ conviction, was sentenced to three years of probation. Metz and Carey previously pleaded guilty before U.S. District Judge Joel A. Pisano to separate informations charging them with conspiracy to commit wire fraud. Judge Pisano imposed the sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
Integra is a provider of orthopedic products, including devices and implants for the spine, foot and ankle, hand and wrist, and shoulder and elbow. Metz worked there from July 2005 until his termination in April 2013, first as a product specialist (also referred to as a sales representative) and then as Northeast regional manager, supervising 16 product specialists and assistant sales representatives in Massachusetts, New Jersey, New York, and Pennsylvania. Carey was a product specialist, reporting to Metz, from January 2009 until he resigned in April 2011.
Product specialists at Integra were responsible for calling on surgeons to increase sales volume and were routinely present during surgeries. When present during surgeries, product specialists brought with them consignment trays with pre-packaged Integra products available to surgeons, as well as surgery-specific products. Integra billed the hospitals and surgery centers for the products used and product specialists (and their supervisors) were compensated based on salary, sales target-based commission and bonuses.
Metz admitted he used various fraudulent methods to overcharge hospitals and surgery centers. He would sometimes charge for a greater quantity or a more expensive product than was actually used, increasing his compensation and improving his employment evaluations.
Metz and Carey admitted that after Metz became regional manager, he taught at least some of the fraudulent methods to product specialists working for him, including Carey, who sometimes employed those methods.
Metz and Carey fraudulently caused medical facilities to pay more than $800,000 in inflated bills.
In addition to the prison term and home confinement, Judge Pisano sentenced Metz three years of supervised release. As part of their plea agreements, Metz and Carey will forfeit $100,000 and $77,000, respectively, representing the amounts of money they personally made through the fraud scheme. The defrauded hospitals have been reimbursed by Integra for the fraudulent charges.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked detectives of the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, for their contributions to the investigation.
The government is represented by Jacob T. Elberg, Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Defense counsel: Metz: Lawrence Lustberg Esq., Newark
Carey: Timothy Donohue Esq., West Orange, N.J.Man Who Preyed on Vulnerable with Sweepstakes Scam Sentenced to PrisonRead the Press Release
A South King County man who preyed on people across the country with a phony sweepstakes scam, was sentenced today in U.S. District Court in Seattle to two years in prison, three years of supervised release and $238,346 in restitution announced Acting United States Attorney Annette L. Hayes. EUGENE MAGANYA, 30, of Des Moines, Washington was indicted and arrested in February 2014, after a victim alerted law enforcement that he had sent a money order to a commercial post office business in Covington, Washington. The investigation revealed that more than 120 people had sent money orders or wired funds to various false identities used by MAGANYA. The victims sent the money thinking it was a fee for processing sweepstakes winnings. At sentencing U.S. District Judge Thomas S. Zilly noted the scam specifically targeted those who are “older and more vulnerable.”
According to records filed in the case, MAGANYA and co-conspirators in California sent out letters indicating the recipients had won a substantial sweepstake prize. The letters contained a check, and the recipients were told to deposit the check and send a portion of the money back as a fee to process the sweepstakes winnings. The checks were bogus, but before the recipient knew the check would not clear, the victim had withdrawn funds for the “fee” and sent it back to the scammers. The man who originally tipped off police had sent a money order for $2600 to one of MAGANYA’s false identities at the commercial mail box location. The day after MAGANYA’s arrest, the operators of the mail box store alerted police when another letter arrived for that same false identity – inside was $1000 cash from a 77-year-old woman who thought she too had won a sweepstakes.
At the time of his arrest, law enforcement discovered false drivers’ licenses in seven different names, all with MAGANYA’s picture. Agents contacted MoneyGram and Western Union and requested a list of all payments that had been sent to one of the fake identities that MAGANYA had in his possession at the time of his arrest. According to MoneyGram and Western Union, their records showed that over 120 victims had sent $346,760 in funds to the fake identities that MAGANYA possessed. Three co-conspirators were arrested in California and are being prosecuted there as well.
Writing to the court, Assistant United States Attorney Thomas Woods described the impact on the victims. “This was a cruel scheme. It preyed upon people’s hopes and wishes, leading them to believe that they had won a substantial amount of money. Many of the victims undoubtedly were down on their luck, and the letter must have appeared as a godsend. Very few of the victims likely could afford to lose the money that they did. Many of them lost thousands of dollars. Just as important, many of the victims emerged from the case scarred, less likely to trust others….”
Investigators were able to trace $238,346 of the wired funds to specific victims, but were unable to identify the victims associated with about $100,000 of wired funds.
The Federal Trade Commission has information on the sweepstakes scam here. As the FTC notes on the webpage, “Throw away any offer that asks you to pay for a prize or a gift. If it’s free or a gift, you shouldn’t have to pay for it. Free is free.”
The case was investigated by the U.S. Postal Inspection Service, the Covington Police Department and the FBI. The case was prosecuted by Assistant United States Attorney Thomas Woods.
Man Pled Guilty to Health Care Fraud and Issuing Illegal Prescriptions for Controlled SubstancesRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that a physician who formerly ran offices in Central New York has pled guilty to health care fraud and issuing illegal prescriptions for controlled substances.
MAHESH KUTHURU, M.D., age 44, formerly of Baldwinsville, pled guilty to defrauding Medicare from approximately January 2010 through September 2011 in the course of his practice at Upstate Pain Management, with offices at 59 South First Street, Fulton, New York and 287 Genesee Street, Utica. KUTHURU admitted that he submitted bills to Medicare which falsely reflected that he had personally provided or directly supervised other licensed medical personnel providing treatment or services to patients in the Fulton and Utica offices of Upstate Pain Management. In fact, KUTHURU did not personally provide those services because he was either outside the country or in Las Vegas, Nevada where he operated another medical office known as Dessert Pain Management. As a result of the false claims submitted to Medicare by KUTHURU’s New York practice, Medicare paid and KUTHURU received approximately $82,986 to which he was not entitled. In addition, KUTHURU pled guilty to illegally issuing prescriptions for controlled substances from his New York practice. KUTHURU admitted that when he was not in his New York offices, clerical staff in those offices would partially fill out prescription forms for established patients in advance of the patient’s office visit. Those prescription forms would then be sent to KUTHURU in Las Vegas where he would sign the undated forms and return them to the clerical staff in New York. The clerical staff would then date the prescription form and give it to the patient on the day the patient visited the office. On other occasions, KUTHURU signed blank, undated prescription forms and left them in his New York offices for issuance to patients there when he was in Las Vegas.
KUTHURU faces a maximum term of imprisonment of 10 years and a fine of $250,000 on the health care fraud charge and a 1 year term of imprisonment and a $100,000 fine on the unlawful dispensation of controlled substance prescription charge.
United States District Court Judge David N. Hurd scheduled sentencing for May 22, 2015 at Noon in Utica.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the New York Department of Health, Bureau of Narcotic Enforcement, the Health and Human Services Department, the Worker’s Compensation Board, Office of Inspector General, Excellus Special Investigations Unit, Safeguard Services and MVP Health Care, Special Investigations Unit. The case was prosecuted by Assistant U.S. Attorney Edward R. Broton.
Man Arrested on Charges of Fraud in Harrison and Hot Springs, ArkansasRead the Press Release
Law Enforcement Seeking Assistance From Potential Victims
Harrison, AR - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Travis Allen Blount, Jr., aka Travis Allen, or Allen Blount, age 56, of Kirbyville, Missouri, appeared in United States Magistrate Court in Springfield, Missouri for an initial appearance before United States Magistrate Judge David P. Rush on a complaint for charges of three counts of Mail Fraud, one count of Wire Fraud, and two counts of Money Laundering. The charges stem from a scheme to defraud involving classic and vintage cars. Blount previously lived in Harrison and Hot Springs, Arkansas and is formerly from Louisiana.
U.S. Attorney Eldridge stated, “As alleged, this case involves a fraudulent scheme designed for personal gain. In a case such as this where multiple aliases are used in multiple areas, it is difficult to identify all of the victims. For that reason, we are reaching out to try to identify these victims so that justice can be done for all that may have been affected, and ask that you contact Law Enforcement at the phone number below with any pertinent information. Our office remains dedicated to pursuing fraud cases and holding accountable those who swindle honest and vulnerable people out of their hard-earned money by their deceitful schemes.”
According to the complaint, Blount operated two car lots, Corvettes and Classics in Harrison, Arkansas and Al’s Hot Rod’s in Kirbyville, Missouri. Blount would tell victims he would sell their classic and vintage vehicles on consignment, but he would frequently sell a car and not pay the owner, or he would accept payment from a buyer and then not deliver the vehicle or the title to the buyer. Please contact Special Agent Tim Arsenault at 479-571-9763 if you have any information in this case.
This case is being investigated by the Financial Crimes Task Force in the Western District of Arkansas, the Internal Revenue Service - Criminal Investigation Division, Homeland Security Investigations, the Fayetteville Police Department, and the Harrison Police Department. Assistant U.S. Attorney Kyra Jenner is prosecuting the case for the United States.
The charges in the complaint are only allegations. 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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Local Attorney Pleads Guilty to Failing to File Tax ReturnRead the Press Release
Jackson, Miss. -- Robert Harrison pled guilty on January 20, 2015 in U.S. District Court to one count of failing to file a tax return, announced U.S. Attorney Gregory K. Davis and
Jerome R. McDuffie, Acting Special Agent in Charge of IRS – Criminal Investigation.
Harrison will be sentenced by U.S. Magistrate Judge F. Keith Ball on April 2, 2015, at 2:30 p.m. in Jackson. He faces a maximum penalty of one year in federal prison and a $25,000 fine.
During tax year 2007, Mr. Harrison was an attorney who received in excess of $200,000 in gross income. For 2007, the requirement to file a federal income tax return for Head of Household filing status was $11,250, which would have required him to file a tax return. However, the defendant failed to file a tax return for tax year 2007.
"As we approach tax filing season, it is important for people to have confidence that when they file their tax returns and pay their taxes, their neighbors and co-workers are doing the same," stated Acting Special Agent in Charge, Jerome R. McDuffie, Internal Revenue Service – Criminal Investigation. "Robert Harrison willfully disregarded his legal requirement to file tax returns and will ultimately face the consequences of his actions. It is my hope that Americans who file accurate, honest, and timely returns will be further assured that the government will hold accountable those individuals who blatantly disregard the law."
In announcing the guilty plea, U.S. Attorney Davis praised the efforts of special agents from the IRS – Criminal Investigation. Assistant United States Attorneys Mary Helen Wall and Mike Hurst are prosecuting the case.
KC Man Sentenced to 25 Years for Cocaine Conspiracy That Resulted in Murder, Attempted MurderRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for his role in a $7.5 million conspiracy to distribute cocaine and crack cocaine, which resulted in a murder and an attempted murder for which state charges are pending.
Garron T. Briggs, also known as “Guice,” 29, of Kansas City, was sentenced by U.S. District Judge Brian C. Wimes on Wednesday, Jan. 21, 2015, to 25 years in federal prison without parole.
On June 5, 2014, Briggs pleaded guilty to participating in a conspiracy to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine between Jan. 1, 2006, and Nov. 13, 2013. Briggs also pleaded guilty to one count of distributing 28 grams or more of crack cocaine on July 27, 2011.
In addition to the drug-trafficking charges, the court found in rendering the sentence that Briggs also participated in the drug-related murder of Edward Ewing, II, in August 2011. Briggs believed that Ewing had stolen $40,000 and nine ounces of cocaine from him in a burglary. Testimony during the sentencing hearing was that there is no evidence to indicate that Ewing, who was employed full-time and did not have a felony criminal record, was responsible for the burglary.
Briggs and two other men waited outside Ewing’s residence until Ewing’s girlfriend arrived, then confronted her at gunpoint and forced their way into the residence. They pistol-whipped Ewing, who told them he didn’t know anything about the burglary, then repeatedly shot and killed him. Briggs shot Ewing’s girlfriend in the throat and she pretended to be dead, but actually survived the shooting.
Briggs is charged in Jackson County Circuit Court with first degree murder, first degree assault and two counts of armed criminal action. The state case is pending.
Briggs is among 16 defendants charged in the federal indictment, all of whom have pleaded guilty.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the FBI, the Drug Enforcement Administration, IRS-Criminal Investigation, the Jackson County Drug Task Force, the Lee’s Summit, Mo., Police Department and the Kansas City, Mo., Police Department.
Jury Convicts Another in Large-Scale Drug-Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has convicted Rodolfo Casares, 38, of Brownsville, on one count of conspiracy to commit drug trafficking, and two counts of possession with intent to distribute controlled substances - methamphetamine and cocaine, respectively, announced U.S. Attorney Kenneth Magidson. The jury deliberated for two hours and returned the guilty verdicts just moments ago following a two-day trial.
The jury heard from 10 government witnesses, which included testimony that Casares supplied heroin, methamphetamine and cocaine to a major drug trafficking organization headquartered in Mathis and lead by Ricardo Guerrero, 56, of Mathis. On March 18, 2014, Guerrero was convicted by a federal jury in Corpus Christi for being the leader of this conspiracy and was subsequently sentenced to life imprisonment on June 5, 2014.
Casares was involved in the conspiracy from 2009 through most of 2012 and utilized his connections in Mexico to obtain the illegal narcotics and had them crossed into the United States at Brownsville, McAllen or Laredo. Once here, the illegal narcotics were then transported to Guerrero and stored in numerous properties Guerrero owned in Mathis and in neighboring counties.
Guerrero then made the arrangements to sell the heroin, methamphetamine and cocaine throughout the Southern District of Texas and in San Antonio. On Aug. 20, 2011, three conspirators that Casares had hired were arrested at the U.S. Border Patrol Checkpoint at Hebbronville while attempting to transport methamphetamine and cocaine to Guerrero.
Trial testimony also provided that Guerrero’s criminal organization was moving kilogram amounts of methamphetamine, heroin and cocaine at least once or twice a month during the conspiracy.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and has set sentencing for May 15, 2015. At that time, Casares faces a mandatory minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine.
Those charged in relation to this case were identified through a long-term investigation conducted jointly by Homeland Security Investigations and Texas Department of Public Safety in coordination with the United States Attorney’s Office. Assistant U.S. Attorney Chad W. Cowan is prosecuting the case.
Judge Sentences Felon to 20 Years in Prison for Violating Federal Gun and Drug LawsRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 240 months in prison on his conviction of violating federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Thomas Clay Wade, 36.
According to information presented to the court, Wade was a felon who knowingly possessed a firearm and ammunition and knowingly possessed crack cocaine with the intent to distribute.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crimes.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Wade.
Johnny Michael Stallard Sentenced to 180 Months on A-Pvp ChargesRead the Press Release
GREENEVILLE, Tenn. – Johnny Michael Stallard, 39, of Kingsport, Tennessee, was sentenced on Jan. 22, 2015, by the Honorable R. Leon Jordan, U.S. District Court Judge, to a federal prison term of 180 months for his leadership role in an a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy centered in and around the Sullivan County, Tennessee area. A-PVP is a synthetic drug which is commonly referred to on the street as “gravel.”
According to the plea agreement on file with the U.S. District Court, Stallard admitted, that before he got arrested, he was one of the biggest a-PVP dealers in the Kingsport, Tennessee area. On occasions, he obtained a-PVP by the kilogram from an out of state source of supply. He admitted to personally selling and/or having other family members such as Austin Michael Stallard, 19, and David Michael Stallard, 20, both of Kingsport, sell approximately 7,500 grams of a-PVP in the Eastern District of Tennessee and elsewhere. He also admitted that the two younger family members were basically serving as interns for the organization and were supposed to take over for him eventually. Even after he was arrested and in jail, Stallard assisted them and others in the continued sale of a-PVP during numerous recorded telephone conversations.
Stallard was indicted with a number of his family members. His son, Austin Michael Stallard was previously sentenced to 121 months for his role in trafficking a-PVP, hydromorphone and possessing a firearm in furtherance of drug trafficking. His cousin, Leslie Stallard, 37, and his aunt Peggy Stallard, 55, both of Kingsport, were previously sentenced to serve 60 and 72 months in prison respectively for their roles in the a-PVP distribution conspiracy. David Michael Stallard and another co-defendant were also convicted on a-PVP conspiracy charges and have upcoming sentencing dates.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent convictions of Johnny Michael Stallard and co-defendants included the Sullivan County Sheriff’s Office, Kingsport Police Department, Hawkins County Sheriff’s Department, Johnson City Police Department, Greeneville, Tennessee Police Department, Hendersonville, North Carolina Police Department, Scott County, Virginia Sheriff’s Office, Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, and the Department of Homeland Security Investigations. Assistant U.S. Attorney Wayne Taylor represented the United States.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on January 22, 2015, and entering pleas of Not Guilty were:
- MATTHEW LENNON KEHS, a 34-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charge contained in the indictment, KEHS faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA. PACER Case Reference: 14-43
Appearing before U.S. Magistrate Judge Ostby in Billings on January 20, 2015, and entering pleas of Not Guilty were:
- GREGG LAWRENCE HAYWOOD, a 47-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the most serious charge contained in the indictment, HAYWOOD faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference: 14-71
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hot Springs Felon Sentenced to 70 Months in Prison for Distribution of Crack CocaineRead the Press Release
Texarkana, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Cletus Davis, age 39, of Hot Springs, was sentenced today to 70 months imprisonment and three years of supervised release on two counts of Distribution of a Controlled Substance, Crack Cocaine. The sentencing took place before the Honorable Susan O. Hickey in the United States District Court for the Western District of Arkansas in Texarkana.
U.S. Attorney Eldridge commented, “Those who bring illegal drugs onto our streets threaten our communities and the families that live in them. Hot Springs, one of Arkansas’s most beautiful cities, has been plagued by violence escalated by this criminal activity. We will remain focused on investigating and prosecuting these crimes and hold those involved accountable.”
According to court records, during the course of an ongoing investigation, on two separate occasions in August, 2013, detectives with the Hot Springs Police Department Street Crimes Unit arranged for a controlled purchase of crack cocaine from Cletus Davis in exchange for U.S. currency. On each occasion after the exchange, the suspected substance was field tested and showed to be positive for cocaine. The substance was then sent to the Arkansas State Crime Lab where it was confirmed to be cocaine base. Davis pleaded guilty to two counts of Distribution of a Controlled Substance, Crack Cocaine on August 15, 2014. He was previously convicted of 3 felony drug offenses between 1997 and 2007.
This case was investigated by the Hot Springs Police Department. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Honduran Sentenced to 12 Months in Prison for Illegal Possession of a FirearmRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Honduran national was sentenced to 12 months in prison for possessing a firearm while being in the United States illegally.
Jose Marnin Perez-Perez, 24, of Honduras, was sentenced by U.S. District Judge Richard T. Haik for one count of possession of a firearm by a prohibited person. According to evidence presented at the October 23, 2014 guilty plea, a Youngsville police officer conducted a traffic stop on a vehicle Perez was traveling in on August 6, 2014. Upon further investigation, the officer found a Hi-Point 9 mm pistol in a seat pocket where Perez was seated. It was later learned that Perez had been deported in 2012 after a U.S. Border Patrol arrest.
This case is part of Project Safe Neighborhoods, which is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promoting firearm safety.
Homeland Security Investigations and the Youngsville Police Department conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Gulf Cartel Conspirator Sentenced on Cocaine PossessionRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced Nolberto Martinez, also known as “Negro”, aged 31, of Bronwood, Georgia, was sentenced on January 22, 2015, to serve 30 years (360 months) in federal prison for conspiracy to possess with the intent to distribute cocaine and crack cocaine and distribution of cocaine. The sentence was handed down by the Honorable W. Louis Sands, Senior United States District Court Judge, in Albany, Georgia.
Mr. Martinez was convicted on September 5, 2013 following a 20 day jury trial. Testimony at trial revealed that Mr. Martinez was a member of the Gulf Cartel that supplied cocaine to Middle Georgia. From 2007 to October 2011, Mr. Martinez was involved in a large-scale cocaine and crack cocaine distribution organization responsible for the distribution of over 500 kilograms of cocaine in Berrien, Colquitt, Dougherty, Tift, Lowndes, Terrell, Turner, Seminole, Ware, and Calhoun counties in Georgia. The cartel worked from Matamoros, Mexico, placing cocaine inside the hidden compartments of specially-equipped vehicles.A number of additional members of the drug conspiracy have previously been sentenced. Those include: Carlos Johnson – Life in Prison
Kelvin Johnson – Life in Prison
Bobby Taylor—30 years (360 months) imprisonment
Gary Lockett – 21.8 years (262 months) imprisonment
Stuart Cole 15.6 years (188 months) imprisonment
William McKeithen – 15.6 years (188 months) imprisonment
Raymond Sutton— 14 years (168 months) imprisonment
Mark Cleveland Simpson - 13 years (160 months) imprisonment
T’Michael Jones 12.25 years (147 months) imprisonment
Casey Clemons—10 years (120 months) imprisonment
Octavio Sandoval 8.3 years (100 months) imprisonment
Antonio Wimbush – 7.25 years (87 months) imprisonment
James Willis—6.7 years (80 months) imprisonment
Francisco Javier Arispe - 5.8 years (70 months) imprisonment
M. Nichole Sheffield 4 years (48 months) imprisonment.
Baldemar Chavero Leal - 3.8 years (46 months) imprisonment
W. Alvin Barge - 2 years (24 months) imprisonment
U.S. Attorney Michael Moore said, “We have seen an alarming increase in the distribution of drugs from Mexico to the Middle District of Georgia. With these drugs come violence and the devastation of untold numbers of lives. These organizations, whether you call them cartels or simply gangs, will find no safe haven in Middle Georgia. We will spare no effort or resource to make sure that we dismantle these drug distribution organizations. With the lengthy sentences for many of these defendants, we can all sleep a little better knowing that they will be off our streets for years to come. ”John S. Comer, the Acting Special Agent in Charge of the DEA Atlanta Field Division said of the sentencing, “DEA and its law enforcement counterparts orchestrated a well-planned and coordinated assault against this well-established Mexican-based drug cartel that was operating in the Middle District of Georgia. Mexican drug cartels are the source of so many dangerous drugs destined for our country and are responsible for much of the violence in Mexico today. Because of the unified effort between DEA and its law enforcement counterparts, this once-thriving organization will no longer be able to wreak havoc on our society.”
“The successful prosecution of these individuals is the result of commitment and hard work by the men and women working in local, state, and federal law enforcement. The GBI is committed to working with our law enforcement partners as we continue to identify and investigate individuals involved in drug trafficking in Georgia,” stated Vernon Keenan, Director of the Georgia Bureau of Investigation.
The case was investigated by agents from the U.S. Drug Enforcement Administration, Georgia Bureau of Investigation, Bainbridge Department of Public Safety and Georgia State Patrol. Assistant United States Attorney Leah E. McEwen prosecuted the case for the government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Greenville Man Sentenced to 72 Months in Oxycodone ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Gregory D. Megilligan, age 50, of Greenville, was sentenced today in federal court in Greenville, for conspiracy to distribute oxycodone, a violation of Title 21, United States Code, Section 846. Senior United States District Judge Henry M. Herlong, Jr., of Greenville sentenced Megilligan to 72 months imprisonment.
Evidence presented at the change of plea hearing established that Megilligan was in league with Lance Tew, Jessica Hollingsworth, and Ginger Merritt. These three co-conspirator have already been sentenced (Tew was sentenced to 100 months, Hollingsworth to 48 months, and Merritt to 60 months). The four involved in the prescription ring created fraudulent scripts for oxycodone and recruited individuals to pass the prescriptions at various pharmacies in the upstate of South Carolina and in western North Carolina.
The criminal activity was discovered when, on January 15, 2013, Jessica Hollingsworth was arrested in a CVS pharmacy in York County for attempting to pass a fraudulent prescription for oxycodone. Lance Tew was the person who drove her to the pharmacy in a rental car. Both Tew and Hollingsworth were arrested. The car war towed and an inventory search conducted. Police found cash, pills, fake ids, blank prescriptions, and fraudulent prescriptions. Further investigation revealed that the conspirators were passing at least one fraudulent prescription per day. The conspirators recruited many individuals to pass the prescriptions and generally paid the prescription passers 30 pills for their efforts. Merritt, having good computer skills, was the primary manufacturer of the fraudulent prescriptions. Megillian assisted with recruitment and the passing of various prescriptions.
The case was investigated by agents of the federal Drug Enforcement Administration. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Green Bay Man Indicted on Sexual Exploitation of a Child and Pornography ChargesRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin, announced that on January 20, 2015, a federal grand jury returned a four-count indictment against Joseph J. Valdez (age: 29) of Green Bay, Wisconsin, charging him with three counts of sexual exploitation of a child in violation of Title 18 United States Code Section 2251(a) and a single count of possession of child pornography in violation of Title 18 United States Code Section 2252A (a)(5)(B). If convicted of the exploitation offenses, as to each count the defendant faces a sentence of between fifteen and thirty years imprisonment, a $250,000, and between five years and a lifetime of supervised release. Conviction on the possession offense carries penalties of up to ten years imprisonment, a $250,000 fine, and between five years and a lifetime of supervised release.
The indictment alleges that Valdez knowingly coerced underage females to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct, as well as knowingly possessing numerous images of child pornography.
The case was investigated by the Seymour Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Fulton County Man Charged Federally with Firearms ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury in Harrisburg, Pennsylvania, handed down a three-count indictment against Darren L. Hamil, age 43, of Needmore, Fulton County, Pennsylvania.
According to U.S. Attorney Peter Smith, the indictment charges Hamil with two counts of being a convicted felon in possession of a firearm, and with making a false statement in connection with the attempted purchase of a firearm by denying that he had ever been previously convicted of a felony offense.
The charges stem from a December 27, 2014 incident and search at Hamil’s home when Pennsylvania State Police responded to a domestic disturbance report.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms and by the Pennsylvania State Police. Assistant U.S. Attorney Gordon Zubrod oversaw the grand jury investigation and has been assigned to prosecute the case.
The maximum sentence Hamil faces is 10 years imprisonment and a $250,000 fine.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Traverse City Man Sentenced to Nine Years in Prison for Importing "Bath Salts" from ChinaRead the Press Release
GRAND RAPIDS, MICHIGAN – Joshua David Buerman, 27, formerly of Traverse City, Michigan, was sentenced in the U.S. District Court for the Western District of New York on a charge originally brought here in the Western District of Michigan. He received 9 years in prison for his involvement in a conspiracy to import into the State of Michigan more than 5 kilograms of methylone from China. Buerman also received a concurrent 9 year sentence on his plea of guilty to a separate criminal charge stemming from his involvement in a conspiracy to import and distribute more than 15 kilograms of methylone in the State of New York.
Methylone is a synthetic stimulant having a chemical structure which closely resembles 3,4 methyelenedioxymethamphetamine, known commonly as “MDMA” or “ecstasy.” Methylone is often sold generically by the street term “bath salts” or “research chemicals.” Methylone was permanently placed into Schedule I of the Controlled Substances Act in April 2013.
U.S. Attorney Patrick Miles said, “Synthetic drugs such as methylone are extremely dangerous. Users are often misled into believing synthetic drugs are less harmful than more commonly known street drugs, particularly by their innocuous sounding street name, ‘bath salts.’ In truth, synthetic drugs can lead to severe psychological dependence and death. Because synthetic drugs often have obscure origins, are imported from overseas, and contain misleading labeling, users often have no idea what kinds of chemicals they are putting in their bodies. We will vigorously prosecute those who illegally import and distribute these drugs.”
In February 2012, while living in Traverse City, Michigan, Joshua Buerman began purchasing quantities of methylone and several other synthetic drugs from a Chinese source of supply that he discovered over the internet. Over the course of the next several months, Buerman ordered more than 5 kilograms of methylone, all of which was delivered to him through the U.S. mail.
In June 2012, Buerman left the state Michigan and moved back to Rochester, New York where he continued to purchase and receive significant quantities of methylone online from the same Chinese supplier. In connection with the investigation of Buerman and his Chinese source of supply, law enforcement officials were able to determine that Buerman was actively ordering methylone from China and that he had recruited several local associates to assist him.
The investigation further revealed that the China-based supplier was shipping an assortment of controlled substances and controlled substance analogues to numerous customers located throughout the United States and abroad, including, but not limited to Austria, Canada, Finland, Spain, Germany, Italy, Belgium, Ireland, the United Kingdom, Sweden and Lithuania.
The investigation generated more than 450 leads which were disseminated to various police agencies across the United States, resulting in the nationwide seizure of more than 70 kilograms of methylone and numerous controlled substance analogues, all of which had been shipped from China. Investigative leads also resulted in at least 54 arrests nationwide, including Maine, Massachusetts, Connecticut, New Jersey, Maryland, Virginia, North Carolina, South Carolina, Georgia, Florida, Louisiana, Tennessee, Missouri, Ohio, Minnesota, Nevada, Oregon, California and Texas.
The Michigan portion of the investigation was handled by the Michigan State Police and Homeland Security Investigations. It was prosecuted by AUSA Clay Stiffler.
END
Former Traverse City Man Sentenced to Nine Years in Prison for Importing "Bath Salts" from ChinaRead the Press Release
GRAND RAPIDS, MICHIGAN – Joshua David Buerman, 27, formerly of Traverse City, Michigan, was sentenced in the U.S. District Court for the Western District of New York on a charge originally brought here in the Western District of Michigan. He received 9 years in prison for his involvement in a conspiracy to import into the State of Michigan more than 5 kilograms of methylone from China. Buerman also received a concurrent 9 year sentence on his plea of guilty to a separate criminal charge stemming from his involvement in a conspiracy to import and distribute more than 15 kilograms of methylone in the State of New York.
Methylone is a synthetic stimulant having a chemical structure which closely resembles 3,4 methyelenedioxymethamphetamine, known commonly as “MDMA” or “ecstasy.” Methylone is often sold generically by the street term “bath salts” or “research chemicals.” Methylone was permanently placed into Schedule I of the Controlled Substances Act in April 2013.
U.S. Attorney Patrick Miles said, “Synthetic drugs such as methylone are extremely dangerous. Users are often misled into believing synthetic drugs are less harmful than more commonly known street drugs, particularly by their innocuous sounding street name, ‘bath salts.’ In truth, synthetic drugs can lead to severe psychological dependence and death. Because synthetic drugs often have obscure origins, are imported from overseas, and contain misleading labeling, users often have no idea what kinds of chemicals they are putting in their bodies. We will vigorously prosecute those who illegally import and distribute these drugs.”
In February 2012, while living in Traverse City, Michigan, Joshua Buerman began purchasing quantities of methylone and several other synthetic drugs from a Chinese source of supply that he discovered over the internet. Over the course of the next several months, Buerman ordered more than 5 kilograms of methylone, all of which was delivered to him through the U.S. mail.
In June 2012, Buerman left the state Michigan and moved back to Rochester, New York where he continued to purchase and receive significant quantities of methylone online from the same Chinese supplier. In connection with the investigation of Buerman and his Chinese source of supply, law enforcement officials were able to determine that Buerman was actively ordering methylone from China and that he had recruited several local associates to assist him.
The investigation further revealed that the China-based supplier was shipping an assortment of controlled substances and controlled substance analogues to numerous customers located throughout the United States and abroad, including, but not limited to Austria, Canada, Finland, Spain, Germany, Italy, Belgium, Ireland, the United Kingdom, Sweden and Lithuania.
The investigation generated more than 450 leads which were disseminated to various police agencies across the United States, resulting in the nationwide seizure of more than 70 kilograms of methylone and numerous controlled substance analogues, all of which had been shipped from China. Investigative leads also resulted in at least 54 arrests nationwide, including Maine, Massachusetts, Connecticut, New Jersey, Maryland, Virginia, North Carolina, South Carolina, Georgia, Florida, Louisiana, Tennessee, Missouri, Ohio, Minnesota, Nevada, Oregon, California and Texas.
The Michigan portion of the investigation was handled by the Michigan State Police and Homeland Security Investigations. It was prosecuted by AUSA Clay Stiffler.
Former Office Manager Pleads Guilty to Wire Fraud and Tax EvasionRead the Press Release
BOSTON – A former office manager of a medical practice in Northampton pleaded guilty today in U.S. District Court in Springfield to wire fraud and tax evasion.
Roxanne Tubolino, 56, of Belchertown, Mass., pleaded guilty to wire fraud and six counts of tax evasion. In November 2014, Tubolino was charged in an Information. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 16, 2015.
From 2008 through September 11, 2013, Tubolino was employed as an office manager for Northampton Internal Medical Associates (NIMA), a medical practice with offices in Northampton, Mass. During this period, Tubolino embezzled approximately $1,562,206 by writing numerous checks from NIMA’s corporate account to pay her personal credit card bills for accounts that she held at American Express, Bank of America, Chase, and Barclays. Tubolino concealed this theft by falsely and fraudulently entering these checks into NIMA’s Quickbooks records as business expenses, such as “Clint Pharmaceuticals,” “Oncology Supplies,” and “Abbot Laboratories.” Tubolino also filed tax returns for 2008 through 2013 in which she did not report any of the income that she received from her embezzlement at NIMA.
The charge of wire fraud provides a sentence of no greater than 20 years in prison, five years of supervised release, and a fine of $250,000. The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, and fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Former Municipal Court Judge Sentenced in Fraud CaseRead the Press Release
PHILADELPHIA – Joseph C. Waters, Jr., 61, of Philadelphia, was sentenced today to 24 months in prison for using his judicial position to influence the outcome of two cases in the Philadelphia Municipal Court. Waters, a former Philadelphia Municipal Court Judge, pleaded guilty on September 14, 2014 to mail fraud and honest services wire fraud. In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered 3 years of supervised release and ordered Waters to pay a fine of $5500, and a special assessment of $200.
According to documents filed in the case, on September 30, 2011, Waters was asked by Person #1 – a politically active business owner – to use his judicial office to achieve a favorable outcome in a small claims case filed in Philadelphia Municipal Court against Person #1’s real estate management company. To that end, Waters called two other Municipal Court judges, assigned to the case on different dates, and asked them to rule in Person #1’s favor. A Municipal Court Judge identified in the information as Judge #2 ultimately adjudicated the case in favor of Person #1 after Waters told Judge #2 “he’s a friend of mine.” Judge #2’s ruling in favor of Person #1’s company prevented the plaintiff in the small claims case, Company B, from collecting $2733 in unpaid fees owed to it for security services it delivered to Person #1’s company.
Waters gave Person #1 a secret advantage through a series of secret ex parte communications with other Municipal Court judges scheduled to hear the small claims case and used his position to cause favorable rulings for Person #1.
In a second scheme, Waters used his position as a judge to facilitate a favorable outcome in a criminal firearms case. In that matter, Person #1 urged a witness cooperating with the government, “CW#1,” to contribute money to help pay down debts Waters had incurred while campaigning for a position on the Municipal Court. In January 2010, CW#1, gave Waters $1,000 in cash. In accepting the money, Waters told CW#1 that he would help CW#1 with future problems that CW#1 or CW#1’s friends may encounter in the court system. Between 2010 and 2012, CW#1 provided gifts and cash contributions to Waters that were not reported on Waters’ campaign finance reporting forms.
In May 2012, CW#1 asked Waters for his assistance with a firearms prosecution pending in the Municipal Court. CW#1 introduced Waters to an undercover agent (“UC#1”) as a business associate. CW#1 and UC#1 asked Waters to help UC #1’s “cousin” who had been arrested for felony possession of a firearm. On July 23, 2012, Waters called Judge #1 alerting Judge #1 to the preliminary hearing of a “friend” for the firearms charge and asked Judge #1 to “help him.” At a July 24, 2012 preliminary hearing, Judge #1, without proper legal basis, reduced the felony firearms charge to a misdemeanor.
The case was investigated by the FBI and is being prosecuted by Chief of the Public Corruption Unit Richard P. Barrett and Assistant United States Attorney Michelle L. Morgan.
Former Iowa City Area Man Sentenced to 15 Years for Methamphetamine TraffickingRead the Press Release
DAVENPORT, IA – On January 22, 2015, Shedrick Xavier Pujoe, age 26, formerly of the Iowa City area, was sentenced by United States District Judge Stephanie M. Rose for possession with intent to distribute at least 50 grams of actual methamphetamine announced United States Attorney Nicholas A. Klinefeldt. Pujoe was sentenced to 180 months in prison. He was also ordered to serve five years supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
On August 8, 2013, police executed a search warrant at a motel room in Coralville, Iowa, where Pujoe was residing. Police seized numerous items in the room indicative of drug trafficking, including 20 separately packaged amounts of ice methamphetamine totaling 88 grams. Also in the room were digital scales, latex gloves, numerous plastic baggies, and drug ledgers. Pujoe’s fingerprint was identified on the packaging containing the methamphetamine. At trial, testimony and supporting evidence was received that Pujoe sold portions of that ice methamphetamine on multiple occasions to a customer during the summer of 2014. On October 8, 2014, a jury found Pujoe guilty of the drug trafficking charge.
This case was investigated by the Johnson County Drug Task Force, the Iowa Department of Narcotics Enforcement, the U.S. Drug Enforcement Administration, the Coralville, Iowa, Police Department, and the Iowa City, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Florida Man Sentenced to 21 Months in Federal Prison for $433,000 FraudRead the Press Release
SAN FRANCISCO – Yesterday, Michael Pitamber Ramdat was sentenced to 21 months in prison and ordered to pay restitution for a fraud scheme he perpetrated against small business owners and others seeking lines of credit around the nation, announced United States Attorney Melinda Haag; Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and David Johnson, Special Agent in Charge of the Federal Bureau of Investigation (FBI) San Francisco Field Office.
Ramdat pleaded guilty on June 11, 2014. According to the Plea Agreement, Ramdat and his partner, Leigh Farrington Fiske, operated a business referred to as “Corporate Funding Solutions.” The purported purpose of this business was to obtain credit lines for customers in exchange for a fee. Ramdat’s role was to vouch for the legitimacy of the business with victims recruited by Fiske, and to provide “customer service” by giving excuses to the victims. In reality, neither Fiske nor Ramdat ever intended to provide any services to their customers. Instead, they accepted approximately $433,000 from approximately 30 victims and never helped any of these victims obtain credit. Ramdat admitted that he kept over $200,000 of these payments for himself. Monies obtained through the fraudulent scheme were funneled through banks that received Troubled Asset Relief Program funding.
Ramdat, 30, of Palm Bay, Fla., was indicted by a federal grand jury on Nov. 21, 2013, on five counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of conspiracy, in violation of 18 U.S.C. § 1349. Ramdat pleaded guilty to all counts.
The sentence was handed down by the Honorable Edward M. Chen, United States District Court Judge. Judge Chen also sentenced the defendant to a three year period of supervised release and restitution. The defendant is in custody and will begin serving the sentence immediately. Fiske was previously sentenced by Judge Chen to a term of imprisonment of 37 months.
Benjamin Kingsley is the Assistant U.S. Attorney who is prosecuting the case, with the assistance of Mary Mallory and Jessica Meegan. The prosecution is the result of an investigation by SIGTARP and the FBI.
This prosecution was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, which was established to wage an aggressive and coordinated effort to investigate and prosecute financial crimes. SIGTARP is a member of the task force. To learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.StopFraud.gov.
First of Cape Cod Brothers Sentenced to Twenty Years for Oxycodone Trafficking SchemeRead the Press Release
BOSTON – After a month-long federal trial, Joshua M. Gonsalves was sentenced on multiple charges arising from a three-year conspiracy involving hundreds of thousands of 30-milligram oxycodone pills which he and his brother distributed on Cape Cod and generated over $5 million in proceeds.
Joshua M. Gonsalves, 34, of Dennisport, Mass., was sentenced by U.S. District Court Chief Judge Patti B. Saris to 20 years in prison, five years of supervised release, forfeiture of $1,522,372 and property, including seized currency, a house in West Yarmouth, a Cadillac, and a Nissan Altima.
In October 2014, Joshua Gonsalves was convicted of oxycodone conspiracy, money laundering conspiracy and money laundering. Joshua Gonsalves’s brother, Stanley D. Gonsalves, 36, also of Sandwich, Mass., was convicted of an oxycodone trafficking conspiracy, a money laundering conspiracy, and 17 substantive money laundering charges. Stanley Gonsalves is scheduled to be sentenced on Feb. 24, 2015.
During the trial, witnesses testified that the conspiracy’s couriers transported multi-thousand-pill loads of 30-milligram oxycodone pills from South Florida up to New England, first by plane and later by car. Once the pills were brought to numerous area hotels or conspirators’ homes and apartments in Dorchester, Quincy, and Onset, Mass., the conspirators would divide them into 100-pill packs and then take the pills to Cape Cod for sale to the dealer-level customers.
The primary object of the related money laundering conspiracy was to use the millions of dollars in drug proceeds to purchase additional oxycodone pills and to pay the ongoing expenses of the oxycodone conspiracy. During the trial, witnesses testified about seizures from the Gonsalves Brothers’ co-conspirators of two south-bound cash shipments totaling $140,000, and a north-bound pill shipment of 5,700 pills. Other large pill seizures occurred in Fort Lauderdale (8,000 pills), in Volusia County, Fla. (900 pills), along Route 6 in Barnstable, Mass. (280 pills), and along Route 3 Southbound in Kingston, Mass (4,000 pills). Other related cash seizures from co-conspirators totaled $167,000.
The trial evidence also included extensive testimony about a car chase and rollover incident which occurred on Route 3 Northbound on May 13, 2011, in which the Gonsalves Brothers allegedly rammed their Mercedes SUV into a Volvo station wagon which they mistakenly believed contained the $225,000 in cash drug proceeds which had just been taken from them in a Bourne robbery. The men in the Volvo, who allegedly were only assisting the primary robbers (who were watching these events unfolding from a different car) managed to survive the rollover crash and then fled into the woods. In a recorded call a few days later, which was played at the trial, Stanley Gonsalves told a criminal associate about the robbery, boasting that the robbers “didn’t expect us to do what we did” in retaliation.
At today’s hearing, the prosecutor noted that newly-inaugurated Massachusetts Governor Baker and Attorney General Healey have both named the Massachusetts opiate epidemic as among their top priorities. U.S. Attorney Ortiz has been working for many months with federal state and local officials to combat opiate addiction in Massachusetts. Chief Judge Saris found the defendant responsible for over 89,000 oxycodone pills and described his criminal record as “shocking.”
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. Significant assistance was also provided by the DEA Cape Cod Drug Task Force; the Barnstable County and Cape and Islands District Attorneys Offices; the Barnstable, Boston, Bourne, Chatham, Dennis, Franklin, Harwich, Plymouth, Sandwich, Quincy, Yarmouth, and Wareham Police Departments; the Barnstable and Bristol County Sheriff’s Departments; the Florence County (South Carolina), Broward County (Florida) and Volusia County (Florida) Sheriff’s Offices; and the Dillon and Ridgeland (South Carolina) Police Departments.
The case was prosecuted by Assistant U.S. Attorney Timothy E. Moran and recently retired Assistant U.S. Attorney Richard L. Hoffman of Ortiz’s Organized Crime Strike Force Unit.
Federal Prosecutors Will Recommend 20 Years for Wichita Man Arrested with Thousands of Child Porn Images and VideosRead the Press Release
WICHITA, KAN. – Federal prosecutors will recommend a 20-year sentence for a Wichita man who pleaded guilty to collecting thousands of images and videos of child pornography, U.S. Attorney Barry Grissom said today.
James Paul Bettes, Jr., 47, Wichita, Kan., pleaded guilty Thursday in U.S. District Court in Wichita to one count of distributing child pornography and one count of possessing child pornography. In his plea, he acknowledged that the investigation began in May 2014 when a detective with the Wichita Police Department downloaded child pornography that Bettes was distributing on a peer-to-peer file sharing network. The images included prepubescent children being sexually molested.
When investigators served a search warrant at Bettes’ home they found thousands of images and videos of child pornography on various devices. They determined that Bettes had been collecting child pornography since 1995 and was using a computer, external drives and other storage devices to preserve his collection.
Sentencing is set for April 9. Both parties have agreed to recommend a sentence of 20 years in federal prison. In addition, prosecutors will recommend restitution of $3,000 per victim to any victim who may be identified and requests restitution prior to sentencing. The total is not to exceed $50,000.
Grissom commended the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force and Assistant U.S. Attorney Jason Hart for their work on the case.
Federal Jury Convicts Chattanooga Pain Clinics Owner of Drug Trafficking and Financial CrimesRead the Press Release
CHATTANOOGA, Tenn. - Following a 25-day trial in U.S. District Court that began on Nov. 3, 2014, a jury convicted Barbara Lang, a.k.a. “Aunt Bea,” 60, of Rossville, Ga., of conspiring to illegally distribute controlled substances (oxycodone and Xanax) at Superior One Pain Clinic and Primary Care Pain Clinic, two pain management clinics owned and operated by Lang.
The jury also convicted Lang of operating drug-involved businesses at five of the six locations used by the clinics. Lang was also convicted of illegally “structuring” cash deposits into Primary Care’s bank account at First Tennessee Bank in an effort to avoid triggering currency transaction reporting requirements. Altogether, she was convicted of two drug conspiracy charges; five maintaining a drug-involved business; and 14 structured transactions to avoid reporting requirements. She was acquitted of one count of maintaining a drug involved business, eight structuring counts, and one charge of harboring a fugitive, her daughter, Faith Blake, who was also charged in this case.
Sentencing for Lang is set for 9:00 a.m., Apr. 9, 2015, in U.S. District Court in Chattanooga. She faces a maximum sentence of 210 years in prison and forfeitures of up to $4 million. Approximately $1 million has already been seized in the case.
Lang was charged along with three others who have all previously pleaded guilty. Lang’s daughter, Faith Blake, pleaded guilty to conspiring to illegally distribute drugs through Superior One medical clinic, a business she operated with her mother. Blake also pleaded guilty to conspiring to illegally distribute drugs through Elite Care, another Chattanooga pain clinic that she operated. Additionally, she pleaded guilty to obstructing the Internal Revenue Service (IRS) and failure to appear for a federal court proceeding.
Dr. Jerome Sherard, Superior One’s medical director, pleaded guilty to conspiring to illegally distribute drugs at Superior One Medical Clinic and at the Sherard Clinic, his own practice. Charles Larmore, a nurse practitioner employed by the Lang at Superior One and Primary Care, pleaded guilty to conspiring to illegally distribute drugs at both those clinics.
Evidence presented at trial established that Lang and Blake operated Superior One as a “pill mill,” a location where individuals could easily obtain prescriptions for powerful pain killers such as oxycodone with little or no documented need. Armed guards patrolled the parking lots. Customers paid cash to obtain prescription drugs which were then abused and/or sold to others. Large doses of the drugs were routinely prescribed. Lang later opened Primary Care, and while she made some effort to present a more “legitimate” business, engaged in the several of the same illegal practices.
Records obtained from the State of Tennessee showed that Sherard and Larmore prescribed more narcotics than all but about 10 of the more than 20,000 prescribers in the state and routinely prescribed dangerous amounts and combinations of opioids and other narcotics. The jury heard evidence from clinic landlords, neighbors, customers, medical providers, wiretaps, and law enforcement officials that drug-seeking customers travelled hours to come to the clinics, engaged in drug activities around the clinics, and traded pills for cash. Customers would be given prescriptions even after they had failed drug tests, admitted abusing or selling drugs, or failed to document a medical need for the medication. During the seven months that it operated, Superior One generated over $2 million. During the 11 months that it operated, Primary Care generated approximately $2 million. The jury heard evidence that Lang “skimmed” approximately $175,000 from Primary Care that she did not report to the IRS. When agents searched her house they found a money-counting machine and $234,333 in cash in a safe.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Lang, Blake, Sherard and Larmore included the Drug Enforcement Administration, Tennessee Bureau of Investigation, Hamilton County Sheriff’s Office, Chattanooga Police Department, Roane County Sheriff’s Department, and Rockwood Police Department. Assistant U.S. Attorneys Gregg L. Sullivan and Michael D. Porter represented the United States at trial. Assistant U.S. Attorney Tracy Stone prosecuted other individuals involved in the drug conspiracies.
Federal Grand Jury Indicts Hunt County Man on Felony Firearm OffenseRead the Press Release
DALLAS — A grand jury in Dallas has indicted a Hunt County, Texas, man on a federal firearm offense, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Lee Clinton Hobdy, 36, of Commerce, Texas, is charged with one count of being a convicted felon in possession of a firearm.
The indictment alleges that in late August 2014, Hobdy, a convicted felon, knowingly and unlawfully possessed a Glock, .45 caliber pistol.
Hobdy is currently in custody on related state charges. A date has not yet been set for him to make his initial appearance in federal court.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, Hobdy faces a mandatory minimum 15-year sentence and a maximum sentence of life imprisonment.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Commerce Police Department are investigating. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay is in charge of the prosecution.
Federal Court Sentences Davenport Woman on Escape from Federal CustodyRead the Press Release
DAVENPORT, IA - On January 22, 2015, Kenra Sharay Campbell, age 29, of Davenport, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 18 months in prison, after pleading guilty to escape from federal custody, announced United States Attorney Nicholas A. Klinefeldt. Campbell was also ordered to serve two years of supervised release following the imprisonment, and to pay $100 to the Crime Victims Fund.
On August 6, 2014, Campbell escaped from the Davenport Work Release Center, where she was serving the remainder of a federal sentence for felon in possession of a firearm. On August 8, 2014, the United States Marshals Service arrested Campbell in Moline, Illinois.
This case was investigated by the United States Marshals Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Federal Court Sentences Davenport Man for Conspiracy to Distribute MarijuanaRead the Press Release
DAVENPORT, IA - On January 22, 2015, Justin Scott Coffey, age 30, of Davenport, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 63 months in prison, after pleading guilty to conspiracy to distribute marijuana, announced United States Attorney Nicholas A. Klinefeldt. Coffey also was ordered to serve four years of supervised release following the imprisonment, and to pay $100 to the Crime Victims Fund.
From June 2007 to April 2013, Coffey and other individuals entered into an agreement to distribute over 100 kilograms of marijuana. During this time period, Coffey traveled to California and arranged for the purchase of multiple pound quantities of marijuana. Coffey mailed packages of marijuana back to other Iowa co-conspirators for re-distribution in the Quad Cities area. Coffey also transported marijuana and drug proceeds himself in and out of Iowa.
This case was investigated by the U.S. Drug Enforcement Administration and the Quad CityMetropolitan Enforcement Group (QCMEG). The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Fair Oaks Resident Sentenced to More Than 8 Years for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Aleksandar Randjelovich, 39, of Fair Oaks, was sentenced today by United States District Judge Troy L. Nunley to eight years and two months in prison for receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, law enforcement agents identified a computer operating out of Randjelovich’s residence offering files of child pornography through a file-sharing network. After executing a search warrant, agents found 1,276 videos and 3,690 images containing child pornography. In Randjelovich’s plea agreement entered on July 3, 2014, he admitted that he would download the files four to six times per week from about September 3, 2008 until October 12, 2012. The files included images of bondage and of toddlers being sexually molested by adults.
“The large volume of child pornography this defendant possessed make it clear he harbored a dangerous sexual interest in children and posed a threat to our community,” said Ray Greenlee, assistant special agent in charge for HSI Sacramento. “This lengthy prison term will prevent him from preying on children and continuing to perpetuate the cycle of victimization that occurs when child pornography is downloaded from the Internet.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Special Assistant United States Attorney Josh F. Sigal prosecuted the case.
Randjelovich was remanded into federal custody after today’s sentencing hearing.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Executive of Japanese Automotive Parts Manufacturer Indicted for Role in Conspiracy to Fix PricesRead the Press Release
A Detroit federal grand jury returned a one-count indictment against an executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of seatbelts, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hiromu Usuda, an executive at Takata Corp., with conspiring to rig bids for, and to fix, stabilize and maintain the prices of, seatbelts sold to Toyota Motor Corp., Honda Motor Company Ltd., Nissan Motor Co. Ltd., Mazda Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and/or certain of their subsidiaries, for installation in vehicles manufactured and sold in the United States and elsewhere. Usuda served as Group and Department Manager in the Customer Relations Division at Takata, from January 2005 until at least February 2011.
“Antitrust violators who refuse to accept responsibility for their crimes leave us no choice but to indict,” said Brent Synder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “We will continue to prosecute those that commit these crimes.”
The indictment alleges, among other things, that from at least Jan. 1, 2005, through at least February 2011, Usuda and others attended meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of seatbelts sold to the automobile manufacturers. It alleges that Usuda participated directly in the conspiratorial conduct and that he directed, authorized and consented to his subordinates’ participation.
Takata is a Tokyo-based manufacturer of automotive parts, including seatbelts. Takata supplies automotive parts to automobile manufacturers in the United States, in part, through its U.S. subsidiary, TK Holdings Inc., located in Auburn Hills, Michigan. Takata pleaded guilty on Dec. 5, 2013, for its involvement in the conspiracy, and was sentenced to pay a criminal fine of $71.3 million. Four other executives from Takata have pleaded guilty, have been sentenced to serve time in a U.S. prison and to pay criminal fines for their roles in the conspiracy.
Including Usuda, 50 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
Usuda is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Eufaula Woman Pleads Guilty to Obstruction of JusticeRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that LINDA LUE ADAMS, a/k/a LINDA CORLEY, a/k/a LINDA MARTIN, age 68, of Eufaula, Oklahoma, pled guilty to Obstruction of Justice, in violation of Title 18, United States Code, Section 1512(c)(2).
The charge arose from an investigation by the Social Security Administration, Office of Inspector General.
The Information alleges that on or about the 12th day of December, the defendant, did corruptly attempt to obstruct, influence, and impede an official proceeding, to wit: an impending grand jury investigation of social security fraud in which the defendant and others were benefiting from social security disability payments to which they were not entitled, by making materially false statements regarding the involvement of other persons in the fraud for the purpose of preventing the prosecution of those other persons.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 20 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Rob Wallace represented the United States.
Esmond Street Career Criminal Sentenced to 16 Years for Drug TraffickingRead the Press Release
BOSTON – A Boston man was sentenced yesterday to 16 years in federal prison for drug trafficking and firearm charges.
Gerald Smith, a/k/a “G-Man,” 38, of Boston, was sentenced yesterday to 16 years in prison and five years of supervised release. In October 2014, Smith pleaded guilty before U.S. District Court Judge Richard G. Stearns to two counts of distribution of cocaine base, possession with intent to distribute 280 grams or more of cocaine base, and being a felon in possession of a firearm and ammunition.
Smith was a long-time Boston-based crack cocaine trafficker who regularly sold crack cocaine in the Esmond Street neighborhood of Boston, an area plagued by drug, gun, and gang violence. During their investigation, federal agents used a cooperating witness and an undercover police officer to purchase crack cocaine from Smith over a dozen times. When agents executed a search warrant at an apartment in Revere used by Smith, they seized nearly a kilogram of cooked crack cocaine ready for street-level sale and a loaded firearm.
Due to his criminal history, Smith faced a 15-year mandatory minimum sentence for possessing a firearm and a 10-year mandatory minimum sentence for possessing more than 280 grams of crack cocaine with intent to distribute.
At the sentencing hearing, the government recommended that the Court sentence Smith to 16 years in prison based, in large part, on Smith’s criminal record. This is Smith’s fourth drug trafficking conviction and he has previously been sentenced to state prison twice before for drug trafficking.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement. The case was prosecuted by Assistant U.S. Attorney Christopher Pohl of Ortiz’s Organized Crime Strike Force Unit.
Employee of Deep River Gun Manufacturer Pleads Guilty to Federal Firearms ViolationsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RICHARD CUMMINGS, 43, of East Haddam, pleaded guilty yesterday in Bridgeport federal court to violating federal firearms laws. CUMMINGS worked as a manager at Tri-Town Plastics (“Tri-Town”), a former federally-licensed firearms manufacturer located in Deep River.
According to court documents and statements made in court, in 2011 and 2012, Tri-Town had a contract with Smith and Wesson to manufacturer firearm frames at its Deep River facility. In February 2012, after the Plainfield Police Department seized a Smith and Wesson 9 millimeter handgun from a residence, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Smith and Wesson had no record of the handgun ever having been manufactured. According to Tri-Town’s records, the handgun had been scrapped in March 2011. At that time, ATF was preparing to conduct a routine inspection of Tri-Town to determine whether to renew their federal license to manufacture firearms. Tri-Town had also been inspected in 2009 and been directed by ATF to address some record-keeping issues discovered during that inspection. When CUMMINGS and a Tri-Town employee who was his subordinate discovered that there were approximately 23 firearms missing from their inventory, rather than report them as missing, CUMMINGS directed the employee to falsely list them as “scrapped” in Tri-Town’s acquisition and disposition records so that ATF would not learn that they were missing and would renew Tri-Town’s license.
In pleading guilty, CUMMINGS admitted that it was his decision to list the firearms as scrapped, at no point prior to the February 2012 Plainfield seizure did he report these firearms as missing or lost and, in February 2012, he failed to correct Tri-Town’s acquisition and disposition records to show the missing firearms.
Later, it was learned that five of the 23 firearms were not, in fact, missing, so that the total number of unaccounted firearms remains 17 (not including the one seized in Plainfield).
CUMMINGS pleaded guilty before U.S. District Judge Stefan R. Underhill to one count of making a false entry in a firearms manufacturer’s acquisition and disposition records in March 2011, one count of failing to file a theft/loss report between March 2011 and February 2012, and one count of failing to maintain a firearms manufacturer’s acquisition and disposition records in February 2012. The maximum penalty on each of these misdemeanor charges is one year of imprisonment, five years of probation and a $100,000 fine.
Sentencing is scheduled for April 15, 2015.
Smith and Wesson purchased Tri-Town in May 2014 and now owns the facility.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Plainfield Police Department. The case is being prosecuted by Assistant U.S. Attorneys Robert M. Spector and Vanessa Richards.
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(203) 821-3722 [email protected]Dundalk Man Pleads Guilty to Aiming A Laser Pointer at A Police HelicopterRead the Press Release
Baltimore, Maryland – James Robert Hensler, age 24, of Dundalk, pleaded guilty late yesterday to aiming the beam of a laser pointer at an aircraft.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
“The FBI has aggressively investigated numerous people who have pointed lasers at aircraft since Congress passed the law in 2012,” said Stephen Vogt, FBI Special Agent in Charge of the Baltimore Division. “People may think of this as a harmless prank, but pointing a laser at a pilot creates an undeniable danger for everyone on board that aircraft. We ask the public to contact us with any information they may have about similar incidents.”
Chief James Johnson of the Baltimore County Police Department stated, “I am glad that this case has come to a positive conclusion and Mr. Hensler is being held accountable. Pointing a laser pointer at any aircraft is a serious matter, as it threatens the lives of those on the aircraft as well as people on the ground. In this incident, the crew of the Baltimore County Police helicopter was lucky that the use of the laser pointer did not lead to a tragic loss of life.”
According to Hensler’s plea agreement and other court documents, on September 30, 2014, a Baltimore County Police helicopter was flying over the area of Patapsco High School when the cockpit was illuminated twice by a green laser beam. Two flight officers in the helicopter put a spotlight on the person whom they saw illuminate the cockpit and called for ground units to respond. Arriving ground units saw Hensler in the area and questioned him. Hensler denied having anything to do with the laser. The flight officers directed the ground officers to a location where they had seen Hensler put his hand prior to the ground officers’ arrival. The responding officers located and seized the laser pointer. After being shown the laser pointer, Hensler admitted that he had used the laser pointer to hit the helicopter because he wanted to see how far the laser could shine.
Hensler faces a maximum of five years in prison, followed by three years of supervised release, and a $250,000 fine. U.S. District Judge Ellen L. Hollander has scheduled sentencing for March 25, 2015.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Harvey E. Eisenberg, who is prosecuting the case.
Defendant Sentenced on Federal Firearm ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that Carman Jeffery Johnson, Jr. of Mobile was sentenced, following an October 2014 guilty plea to a charge of being a prohibited person in possession of a firearm. Johnson was previously convicted in Mobile County of Possession of Marijuana First Degree, and Possession of a Firearm with Altered Identification in 2012. By virtue of these convictions, Johnson is prohibited from possessing firearms or ammunition.
On April 11, 2014, Johnson had two outstanding warrants for probation violations. Johnson was located at Campus Quarters Apartments on University Boulevard by the United States Marshal Service Fugitive Task Force. Johnson was taken into custody, and his backpack was searched incident to his arrest. In the backpack was a MAC 10, .45 caliber pistol, with 27 bullets in the magazine, a box containing 23 bullets, approximately twelve bags of marijuana/spice, and a stolen Glock .40 caliber pistol, with a laser and a magazine in the pistol loaded with 11 rounds of ammunition.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1). Chief United States District Court Judge William H. Steele imposed a 100 month sentence of imprisonment, to be followed by 3 years supervised release.
This case was referred for prosecution by Officer Shaun Wood of the Mobile County Street Enforcement Narcotics Team, who worked in coordination with Special Agent Lisa Reiter of the Federal Bureau of Investigation.
Davenport Man Sentenced to 15 ½ Years for Heroin TraffickingRead the Press Release
DAVENPORT, IA – On January 22, 2015, Demario Dante Palmer, age 36, of Davenport, Iowa, was sentenced by United States District Judge Stephanie M. Rose to 186 months in prison for conspiracy to distribute heroin, announced United States Attorney Nicholas A. Klinefeldt. Palmer was also ordered to serve five years of supervised release following the imprisonment and to pay $100 to the Crime Victims Fund.
Palmer distributed heroin to various customers in the Davenport area beginning by at least 2008 and continuing until June 30, 2014. Palmer obtained portions of the heroin he distributed from sources in the Chicago area. Palmer utilized other persons during this time period to assist him in obtaining heroin from Chicago, including recruiting others to drive him (or other persons acting on his behalf) to Chicago for the purpose of bringing heroin to Davenport to further distribute. Palmer also utilized other persons to assist him with distributing heroin to his customers. On June 30, 2014, pursuant to a warrant, police searched Palmer’s residence in Davenport. Police located approximately 7.5 grams of heroin in 20 individually packaged baggies, packaging material, a digital scale, and a firearm, all of which belonged to Palmer. The quantity of heroin distributed by Palmer exceeded 1 kilogram.
This case was investigated by the Davenport, Iowa, Police Department and the Iowa Department of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Dallas Man Associated with Anonymous Hacking Group Sentenced to 63 Months in Federal PrisonRead the Press Release
DALLAS — Barrett Lancaster Brown, 33, who has been associated with the hacking group, Anonymous, was sentenced today by U.S. District Judge Sam A. Lindsay to serve a total of 63 months in federal prison and pay $890,250 in restitution, following his guilty pleas last year to three separate offenses. The announcement was made this afternoon by John Parker, Acting U.S. Attorney for the Northern District of Texas (NDTX).
In April 2014, Brown pleaded guilty to three separate offenses that essentially resolved all three criminal Indictments pending against him in the NDTX.
Pursuant to the plea agreements, Brown pleaded guilty to the felony offense of transmitting a threat to an FBI Special Agent in interstate commerce, as charged in an indictment returned by a federal grand jury in Dallas in October 2012. He also pleaded guilty to both counts of a superseding information that was filed on March 31, 2014, charging the felony offense of being an accessory after the fact to the unauthorized access to a protected computer and with the misdemeanor offense of interfering with the execution of a search warrant and aiding and abetting another person’s interference with the execution of a search warrant.
The Dallas office of the FBI investigated.
Couple Charged with Recruiting A Minor for PrositutionRead the Press Release
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ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jacob Shamp, 23, and Ashlee Cook, 24, both of Leichester, NY, were arrested and charged by criminal complaint with recruiting an underage girl to commit a commercial sex act and conspiracy to do so. The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life and a $250,000 fine.Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that according to the complaint, the couple posted an ad on Backpage.com, advertising a minor victim for prostitution. Law enforcement officers conducted an undercover operation and arranged to meet the girl in Gates, NY. When officers arrived, they took a statement from the minor victim.
Shamp and Cook made an initial appearance this afternoon before U.S. Magistrate Judge Jonathan W. Feldman. Shamp is being held without bail pending a detention hearing on January 27, 2015 at 10:00 a.m. Cook was released on her own recognizance and will return to court on February 5, 2015 at 9:00 a.m. for a status conference.
The criminal complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation, and the State Police, under the direction of major Craig Hanesworth.
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.
Co-defendants Get Significant Sentences for Multiple Child Pornography ConvictionsRead the Press Release
HOUSTON – William Craig Noonan, of Houston, 39, and David Morse Barry, formerly of Wichita Falls, 55, have been ordered to federal prison for 30 and 27 years, respectively, following their multiple convictions including conspiracy to produce child pornography involving two prepubescent children, announced U.S. Attorney Kenneth Magidson
Today, U.S. District Judge Lee H. Rosenthal, handed Noonan a sentence of 360 months for each of the two counts of conspiracy to produce and one count of distribution of child pornography as well as 120 months for possession of child pornography. The sentences will be served concurrently for a total 30-year federal sentence. Barry will serve a total of 324 months for his convictions. Both Noonan and Barry will be on supervised release for life following completions of their prison terms.
Noonan, a registered sex offender, pleaded guilty March 26, 2014, while Barry proceeded to trial in May 2014. Following the five-day bench trial, Judge Rosenthal found him guilty on two counts of conspiracy to produce and two counts of production of child pornography.
Both have been in custody where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, investigated by the Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Sherri L. Zack and Bob Stabe, 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."