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16 January 2015
Clarkston Man Sentenced to Ten Years in Federal Prison for Possession of Child Pornography ImagesRead the Press Release
SPOKANE – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that George Edward Cupp, age 51, of Clarkson, Washington, was sentenced after having previously pleaded guilty on October 7, 2014 to Possession of Child Pornography Images. United States District Court Judge Stanley Allen Bastian sentenced Cupp to a ten year term of imprisonment and a life term of court supervision after he is released from Federal prison. In addition, Cupp will be required to register as a sex offender.
According to court records, in December of 2013, the National Center for Missing and Exploited Children generated a CyberTipline report indicating that an individual, using a screen/user name of “georgecupp2013” had uploaded images of what appeared to be child pornography to the website Photobucket. Further investigation by the Asotin County Sherriff’s Office and Department of Homeland Security resulted in the execution of a search warrant for Cupp’s desktop computer and cellular phone. A forensic examination of Cupp’s digital devices discovered over 4,000 sexually explicit images, with children ranging from approximately six months of age to 16 years of age.
Michael C. Ormsby said, “I commend the Department of Homeland Security and Asotin County Sherriff’s Office for their outstanding investigation in this case. Prosecuting offenders who are distributing child pornography is a priority of the United States Attorney’s Office in the Eastern District of Washington. This Office, together with its Federal and state law enforcement partners, is and will continue to be committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Department of Homeland Security and Asotin County Sherriff’s Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.CR-14-0089-SAB-1
Canada Extradites Drug Trafficking Defendant to Colorado for ProsecutionRead the Press Release
DENVER – Hector Armondo Chavez, age 28, who was until today in Canada, was extradited from Canada to Denver, Colorado so he can face drug trafficking charges, U.S. Attorney John Walsh and Drug Enforcement Administration (DEA) Denver Division Special Agent in Charge Barbra Roach announced. Chavez was indicted, along with six others, in 2010 for the importation of cocaine from Mexico. The cocaine was brought to Colorado, where it was then later sent to Canada. The defendant is scheduled to make his initial appearance this afternoon at 2:30 p.m. before U.S. Magistrate Judge Craig B. Shaffer, located on the 4th Floor of the Arraj Federal Courthouse, 901 19th Street.
According to the indictment, Chavez, along with others, conspired to import into the United States from Mexico, and then export from the United States into Canada, cocaine, a Schedule II Controlled Substance. The defendant also faces two counts of using a telephone to facilitate the commission of a drug trafficking felony. If convicted of conspiracy, Chavez faces not less than 10 years, and up to life in federal prison, as well as up to a $4,000,000 fine. If convicted of using a telephone for drug trafficking, Chavez faces not more than 4 years imprisonment, and up to a $250,000 fine, per count, for each of the two counts.
The investigation dates back to when a co-defendant, Calvin Wayne Skidmore, was arrested in 2010 at the Del Bonita Port of Entry by U.S. Customs and Border Protection officers. A search of his vehicle yielded 46 packages of cocaine, equating to 16.5 kilograms, concealed in hidden compartments.
In addition to Chavez, two others named in the indictment remain fugitives. Defendant Javier Batista Cervantes is a Mexican National living in Canada and is pending extradition. Defendant Hernandez-Renteria is deceased. Dionisio Salgado, a U.S. citizen, pled guilty in a related case in federal court in Colorado and was sentenced to serve 10 years in prison. Canadian citizen Calvin Wayne Skidmore pled guilty in a related case in the District of Montana and was also sentenced to 10 years in prison.
“When you face federal drug trafficking charges, you can run to another country, but you can’t hide there forever,” said U.S. Attorney John Walsh. “U.S. law enforcement, working with our international partners, can locate a defendant, as was the case with Defendant Chavez, and file extradition papers, which ultimately results in the person returning to the U.S. to resolve the indictment.”
“The extradition of Hector Armondo Chavez to the United States is an example of a commitment to international cooperation,” said DEA Denver Special Agent in Charge Barbra Roach. “The Drug Enforcement Administration thanks the Alberta Law Enforcement Response Teams (ALERT), Lethbridge Regional Police Service and the Royal Canadian Mounted Police for their assistance in this extradition.”
This case was investigated by the DEA. The Lethbridge Regional Police Service, a part of the Alberta Law Enforcement Response Teams in Canada as well as the Royal Canadian Mounted Police assisted U.S. government authorities. The U.S. Marshals Service assisted in the transportation of Chavez from Canada to Colorado. The Department of Justice’s Office of International Affairs provided assistance in this matter. The case is being prosecuted by Assistant U.S. Attorney Michele Korver of the U.S. Attorney’s Office, District of Colorado.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
California Man Sentenced for Insurance Fraud ScamRead the Press Release
RICHMOND, Va. – Joseph Giovanni Santiago, 50, of Los Angeles, California, was sentenced today to 78 months in prison, followed by 3 years of supervised release for engaging in a life insurance scheme involving nearly 1,000 individuals across the country. Santiago was also ordered to pay $1,313,749.07 in restitution to two separate insurance companies.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson.
Santiago pleaded guilty on October 14, 2014 to conspiracy to commit mail fraud. According to court documents, he was the founder of an entity known as Premier Debt Solutions (or “PDS”), which purported to provide faith-based debt restructuring and other services to churches across the country. Santiago also was the founder of 4Him Ministries, which purported to be a non-profit, religious organization.
In pleading guilty, Santiago admitted that he and his conspirators misled insurance companies by falsely representing that PDS employed hundreds of independent contractors for whom PDS intended to obtain employer-funded whole life insurance policies. In fact, none of these individuals were employed by PDS. Rather, Santiago and his conspirators recruited individuals to make false applications for life insurance, posing as PDS employees, so that Santiago and his conspirators could collect the advanced commissions paid for the sale of the policies. In addition, Santiago and his conspirators convinced the policy holders to assign their rights in those policies to 4Him Ministries. The initial plan was to use the advanced commissions from the initial sale of the life insurance policies to make premium payments until they could monetize the policies by selling the policies or securitized interests in the policies to investors.
As a result of this conspiracy, insurance companies ING and Unum Group issued over 800 life insurance policies, each with a face value of $100,000, to supposed PDS employees. The insurance companies mailed these policies to individuals across the country, including individuals within the Eastern District of Virginia. ING and Unum Group also paid these conspirators more than $1.4 million in advance commissions for the sale of these life insurance policies. Ultimately, both insurance companies cancelled all the insurance policies issued to PDS members.
Santiago’s co-conspirator Mark Wayne George pleaded guilty on August 24, 2014 to conspiracy to commit mail fraud, and is scheduled to be sentenced before Judge Hudson on January 29, 2015.
This case was investigated by United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant U.S. Attorney Katherine Lee Martin is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14cr90.California Man Convicted of Running Multi-Million Dollar Fraud Scheme in KentuckyRead the Press Release
FRANKFORT, KY - Today, a federal jury convicted a California man of running a bogus oil production enterprise in Kentucky that defrauded investors, nationwide, out of millions of dollars.
The jury convicted John G. Westine, Jr., 69, for 26 counts of mail fraud and one count each of conspiracy to launder funds and securities fraud. Westine was acquitted on one mail fraud count. The jury reached its verdict after six and a half hours of deliberations, following nine days of trial.
According to testimony at trial, Westine and others lured money from investors by making false statements regarding an oil production business. The false statements led investors to believe that oil was being produced, when in fact it was not, and led them to believe that the oil companies had been in the oil production business for decades, when in reality they had only been in existence for less than a year.
Additionally, evidence at trial established that Westine had concealed from investors that he had served more than 22 years in federal prison, for a 1992 conviction for a similar fraud scheme in Ohio, and that he was on parole.
According to voluminous testimony and documents presented by prosecutors, Westine and others used aliases and fictitious company names to conceal their true identity from investors and authorities.
In total, Westine and others defrauded approximately 200 investors out of more than $3,000,000.
Westine’s co-defendant and half-brother, Michael Hicks, pleaded guilty to similar charges and testified for the government at trial.
The investigation started when investors submitted complaints to the Kentucky Department of Financial Institutions, Division of Securities.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Dugan Wong, Inspector in Charge of the U. S. Postal Inspection Service; and Charles Vice, Commissioner of the Kentucky Department of Financial Institutions, jointly announced the verdict.
The investigation was conducted by the U.S. Postal Inspection Service and the Kentucky Department of Financial Institutions,Division of Securities.
Assistant U.S. Attorneys Ken Taylor and Neeraj Gupta are prosecuting this case on behalf of the federal government.
Westine faces a maximum prison sentence of 20 years on each mail fraud count and 20 years for both the securities fraud and money laundering offenses. Under federal law, Westine will have to serve at least 85 percent of his prison sentence. The Court will impose a sentence after carefully considering the U.S Sentencing Guidelines and the federal statutes.
California Firm Agrees to Stop Production of Adulterated and Misbranded Dietary Supplements and Unapproved New DrugsRead the Press Release
As a result of a lawsuit filed by the United States, a federal court in California has issued an injunction shutting down Health One Pharmaceuticals Inc., a City of Industry, California, based manufacturer of dietary supplements and unapproved new drugs. The firm and its president, Richard S. Yeh, agreed to shut down and resolve the lawsuit as part of a consent decree. The Justice Department filed the injunction action in the Central District of California at the request of the U.S. Food and Drug Administration (FDA).
The consent decree forbids the company from operating unless and until it takes a number of steps to improve its compliance with federal law. The defendants have represented to the court that they have already ceased operations.
“Protecting the health of American consumers is some of the most important work we do,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We have an unwavering commitment to ensuring that the dietary supplements in this country are safe and have been manufactured in accordance with federal law.”
Based on the results of FDA inspections, the complaint alleged that the defendants violated the Federal Food, Drug and Cosmetic Act by delivering, or causing to be delivered for introduction into interstate commerce, dietary supplements that have been prepared, packed or held under conditions that do not meet current good manufacturing practice regulations. Among other things, the complaint alleged that the defendants failed to meet current good manufacturing practices for dietary supplements by failing to conduct at least one appropriate test or examination to verify the identity of every dietary ingredient prior to using the ingredient. Furthermore, the complaint alleged that the defendants’ dietary supplements were misbranded because their labels do not include all the information required by federal law.
The complaint further alleged that some of the defendants’ products were unapproved new drugs—and therefore cannot be lawfully distributed under federal law—because they were articles intended for use in the cure, mitigation, treatment or prevention of disease and, among other things, are not generally recognized as safe and effective for their intended uses and were not the subjects of new drug applications approved by FDA. Furthermore, the complaint alleged that these drugs were misbranded because it is impossible to provide “adequate directions for use” for an unapproved new drug.
The FDA referred this matter to the Department of Justice. The Civil Division’s Consumer Protection Branch, together with the U.S. Attorney’s Office for the Central District of California, filed this case on behalf of the United States.
The claims alleged in the complaint are allegations only and there has been no determination of liability.
Box Elder Man Charged with LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man has been indicted by a federal grand jury for Larceny.
Juan Crawford, age 24, was indicted on October 21, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 9, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to one year in custody and/or a $100,000 fine, one year of supervised release, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Crawford stealing wallets, cash, personal items, and debit and credit cards from unlocked lockers at the men’s gym on Ellsworth Air Force Base on December 9, 2013.
The charge is merely an accusation and Crawford is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Air Force Security Police. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.Crawford was released on bond pending trial. A trial date has not been set.
Attorney General Prohibits Federal Agency Adoptions of Assets Seized by State and Local Law Enforcement Agencies Except Where Needed to Protect Public SafetyRead the Press Release
Today, Attorney General Eric Holder issued an order setting forth a new policy prohibiting federal agency forfeiture, or “adoptions,” of assets seized by state and local law enforcement agencies, with a limited public safety exception. A federally adopted forfeiture – or “adoption” for short – occurs when a state or local law enforcement agency seizes property pursuant to state law and requests that a federal agency take the seized asset and forfeit it under federal law. The U.S. Department of the Treasury, which has its own forfeiture program, is issuing a policy consistent with the Attorney General’s order and that policy will apply to all participants of the Treasury forfeiture program, administered by the Treasury Executive Office for Asset Forfeiture.
“With this new policy, effective immediately, the Justice Department is taking an important step to prohibit federal agency adoptions of state and local seizures, except for public safety reasons,” said Attorney General Holder. “This is the first step in a comprehensive review that we have launched of the federal asset forfeiture program. Asset forfeiture remains a critical law enforcement tool when used appropriately – providing unique means to go after criminal and even terrorist organizations. This new policy will ensure that these authorities can continue to be used to take the profit out of crime and return assets to victims, while safeguarding civil liberties.”
The Attorney General ordered that federal agency adoption of property seized by state or local law enforcement under state law be prohibited, except for property that directly relates to public safety concerns, including firearms, ammunition, explosives and property associated with child pornography. The prohibition on federal agency adoption includes, but is not limited to, seizures by state or local law enforcement of vehicles, valuables, cash and other monetary instruments. This order is effective immediately and applies to all Justice Department attorneys and components, and all participants in the Department of Justice Asset Forfeiture Program. The new policy will ensure that adoption is employed only to protect public safety, and does not extend to seizures where state and local jurisdictions can more appropriately act under their own laws.
Both the Justice and Treasury Departments regularly review their asset forfeiture programs to ensure that federal asset forfeiture authorities are used carefully and effectively to take the profit out of crime, combat organized crime groups, and enable victim compensation, while ensuring that laws are followed, civil liberties are protected, and our constitutional system is strengthened. Since 2000, the Justice Department has returned approximately $4 billion in forfeited funds to victims of federal crime. Both departments will be part of the Law Enforcement Equipment Working Group, which will provide recommendations to the President regarding actions that can be taken to improve programs, like asset forfeiture, that help local law enforcement obtain equipment.
The Justice Department’s policy permitting federal agencies to adopt seizures dates from the inception of the Asset Forfeiture Program in the 1980s. The Treasury Department’s adoption policy has been part of its Asset Forfeiture Program since its inception in 1993. At the time that these policies were implemented, few states had forfeiture statutes analogous to the federal asset forfeiture laws. Consequently, when state and local law enforcement agencies seized criminal proceeds and property used to commit crimes, they often lacked the legal authority to forfeit the seized items. Turning seized assets over to federal law enforcement agencies for adoption was a way to keep those assets from being returned to criminals. Today, however, every state has either criminal or civil forfeiture laws, making the federal adoption process less necessary. Indeed, adoptions currently constitute a very small slice of the federal asset forfeiture program. Over the last six years, adoptions accounted for roughly three percent of the value of forfeitures in the Department of Justice Asset Forfeiture Program.
The new policy applies only to adoptions, not to seizures resulting from joint operations involving both federal and state authorities, or to seizures pursuant to warrants issued by federal courts. The policy does not limit the ability of state and local agencies to pursue the forfeiture of assets pursuant to their respective state laws. Law enforcement agencies working on joint task forces are required to follow the 2015 Guidance for Federal Law Enforcement Agencies Regarding the Use of Race, Ethnicity, Gender, National Origin, Religion, Sexual Orientation or Gender Identity.
Attorney General Holder Statement on Supreme Court Decision to Hear Same-Sex Marriage CasesRead the Press Release
Attorney General Eric Holder released the following statement after the U.S. Supreme Court agreed to hear four cases on same-sex marriage equality:
“After the Justice Department's decision not to defend the constitutionality of Section 3 of the Defense of Marriage Act, the Supreme Court sent a powerful message that Americans in same-sex marriages are entitled to equal protection and equal treatment under the law. This landmark decision marked a historic step toward equality for all American families.
“The Supreme Court has announced that it will soon hear several cases raising core questions concerning the constitutionality of same-sex marriages. As these cases proceed, the Department of Justice will remain committed to ensuring that the benefits of marriage are available as broadly as possible. And we will keep striving to secure equal treatment for all members of society—regardless of sexual orientation.
“As such, we expect to file a ‘friend of the court’ brief in these cases that will urge the Supreme Court to make marriage equality a reality for all Americans. It is time for our nation to take another critical step forward to ensure the fundamental equality of all Americans—no matter who they are, where they come from, or whom they love.”
Arlington Man Pleads Guilty to Production and Possession of Child PornographyRead the Press Release
Produced and possessed images of minors met on the Internet
ALEXANDRIA, Va. – Patrick Joseph Friedel, 29, of Arlington, Virginia, pleaded guilty today to production and possession of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Edwin C. Roessler, Jr., Chief of Police, Fairfax County Police Department made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.
Friedel was originally indicted by a federal grand jury on November 20, 2014. Friedel faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison when he is sentenced on April 24, 2015. The maximum statutory sentence is prescribed by Congress. It is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, Friedel acknowledged meeting five underage teenagers over the Internet and exchanging sexually explicit images with them. In this pattern of activity, Friedel used persuasion, including sending depictions of minors engaged in sexually explicit conduct, and coercion, including threats to post images online and tell parents. On three occasions, Friedel picked up one of the minors and engaged in sexual activity with her. He took pictures and videos of this activity, which according to the plea agreement, included sadistic or masochistic conduct or other depictions of violence.
This case was investigated by Homeland Security Investigations and the Fairfax County Police Department with the assistance of the Northern Virginia/DC Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Matthew Gardner and Tracy Doherty-McCormick are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-383.
Alleged Fraud Scheme Aimed to Secure Bailout FundsRead the Press Release
PHILADELPHIA - An indictment was unsealedFriday charging Brian Hartline, 50, of Collegeville, Pennsylvania, and Barry Bekkedam, 47, of Hobe Sound, Florida, in a fraud conspiracy involving NOVA Bank,where Hartline served as President and Chief Executive Officer and Bekkedam had served as Board Chairman. The alleged scheme involved the Troubled Asset Relief Program (TARP) and was devised in an attempt to defraud the government of more than $13 million. The defendants are each charged with conspiracy to defraud the United States, TARP fraud, two counts of false statements to the federal government, and bank fraud. Bekkedam is additionally charged with two counts of wire fraud.
The charges were announced today by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward J. Hanko, Special Inspector General for the Troubled Asset Relief Program Christy Romero, and Pennsylvania Department of Banking Secretary of Banking and Securities Glenn E. Moyer.
Bekkedam and Hartline, with others, formed NOVA Bank in 2002. Bekkedam also owned and operated a financial advisory company, Ballamor Capital Management, and allegedly advised Ballamor clients to invest in NOVA. But in 2008, NOVA faced risk of failure because of bad loans and investments. Its investors were at risk of losing their investments. In October 2008, NOVA Financial Holdings, Inc., of Berwyn, Penn., the parent company of NOVA Bank, applied for approximately $13.5 million in taxpayer bank bailout funds through the U.S. Department of the Treasury TARP. In June 2009, NOVA Bank was approved to receive the TARP funds on the condition that the bank raise $15 million in additional, private capital. The bank was ultimately unable to raiseprivate capital, did not receive TARP funds, and in October 2012, the bank failed and was closed by state and federal banking regulators.
According to the indictment, Bekkedam and Hartline devised a scheme in which NOVA would loan money to G.L., a Florida businessman, for G.L. to transfer to NOVA’s parent company so it would appear as though the bank had new capital from an outside investor. On June 30, 2009, NOVA wired $5 million to G.L.’s bank account in Florida and, approximately two hours later, G.L. wired $5 million to an account used for investments in NOVA Financial Holdings, Inc. It is further alleged that in October and December 2009, Bekkedam and Hartline convinced two others to make similar “investments” using loans from NOVA, in efforts to make NOVA appear more financially sound than it actually was. The defendants also allegedlytold and directed employees to tell the U.S. Department of Treasury that NOVA had raised new capital when it had not. According to the indictment, the defendants concealed the true purpose of the loan to G.L. and falsely stated the purposes of the other two loans.
If convicted, defendant Bekkedam faces a statutory maximum sentence of 115 years imprisonment, a $4,750,000 fine, five years supervised release, and a $700 special assessment. Hartline faces a statutory maximum sentence of 55 years imprisonment, a $2,750,000 fine, five years supervised release, and a $500 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service Criminal Inestigaton, the Federal Deposit Insurance Corporation Office of Inspector General, the Office of Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. It is being prosecuted by Assistant United States Attorney David Ignall.
In October 2008, NOVA Financial Holdings, Inc., of Berwyn, Penn., the parent company of NOVA Bank, applied for approximately $13.5 million in taxpayer bank bailout funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP). In June 2009, NOVA Bank was approved to receive the TARP funds on the condition that the bank raise $15 million in additional, private capital. The bank was ultimately unable to raise private capital, did not receive TARP funds, and in October 2012, the bank failed and was closed by state and federal banking regulators.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albion Man Sentenced to 12 Months in Prison for Defrauding the Social Security Administration of more than $48,000Read the Press Release
Roger Dale Young Lied About His Income and Resources
So That He Would Receive a Larger Disability Check Each MonthGRAND RAPIDS, MICHIGAN – Roger Dale Young, 55, of Albion, Michigan, was sentenced to 12 months in federal prison today for committing Social Security fraud. He was also ordered to pay restitution to the Social Security Administration. U.S. District Judge Janet T. Neff imposed the sentence.
Young, who had been receiving Supplemental Security Income disability benefits, pled guilty in September 2014 to lying about his assets and other financial resources in order to increase the amount of his monthly disability check. Young’s fraud occurred over the course of nearly 11 years and cost taxpayers more than $48,000.U.S. Attorney Patrick A. Miles, Jr., said, “Protecting taxpayers is one of our primary missions. We will continue to vigorously prosecute those who defraud federal agencies like the Social Security Administration.”
The case was investigated by the Social Security Administration’s Office of Inspector General, the Albion, Michigan Police Department, and the Calhoun County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Clay Stiffler.
Albion Man Sentenced to 12 Months in Prison for Defrauding the Social Security Administration of More than $48,000Read the Press Release
Roger Dale Young Lied About His Income and Resources So That He Would Receive a Larger Disability Check Each Month
GRAND RAPIDS, MICHIGAN – Roger Dale Young, 55, of Albion, Michigan, was sentenced to 12 months in federal prison today for committing Social Security fraud. He was also ordered to pay restitution to the Social Security Administration. U.S. District Judge Janet T. Neff imposed the sentence.
Young, who had been receiving Supplemental Security Income disability benefits, pled guilty in September 2014 to lying about his assets and other financial resources in order to increase the amount of his monthly disability check. Young’s fraud occurred over the course of nearly 11 years and cost taxpayers more than $48,000.
U.S. Attorney Patrick A. Miles, Jr., said, “Protecting taxpayers is one of our primary missions. We will continue to vigorously prosecute those who defraud federal agencies like the Social Security Administration.”
The case was investigated by the Social Security Administration’s Office of Inspector General, the Albion, Michigan Police Department, and the Calhoun County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Clay Stiffler.
15 January 2015
Yah-Ta-Hay Man Sentenced to Sixty-Six Months in Federal Prison for Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Allen Harragarra, 34, a member of the Navajo Nation who resides in Yah-Ta-Hay, N.M., was sentenced today to 66 months in federal prison for his voluntary manslaughter conviction. Harragarra will be on supervised release for three years after completing his prison sentence. He also was ordered to pay $2,689.41 in restitution to cover the victim’s funeral expenses.
Harragarra was arrested in Dec. 2013, on a complaint alleging that he killed a Navajo man on Dec. 2, 2013, on the grounds of a school in Tohatchi, N.M., which is located within the Navajo Indian Reservation. According to the complaint, Harragarra stabbed the victim in the neck during a physical altercation.
On July 22, 2014, Harragarra pled guilty to a voluntary manslaughter charge and admitted killing the victim on Dec. 2, 2013, by stabbing him in the neck. In his plea agreement, Harragarra admitted stabbing the victim once in the neck while acting out of fear and in the heat of passion. He acknowledged that his actions resulted in the unlawful death of the victim.
The case was investigated by the Albuquerque and Gallup offices of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney David Adams.
Wyoming Man Sentenced to 3 Years in Prison for Stealing Forest Service ExplosivesRead the Press Release
BILLINGS – A Wheatland, Wyoming man who stole 688 pounds of explosives from the U.S. Forest Service has been sentenced to 36 months in prison followed by 3 years supervised release. Budd Nesius, 33, was sentenced by U.S. District Judge Susan Waters after pleading guilty to possession of stolen explosives. In addition, Nesius was ordered to pay restitution to the U.S. Forest Service in the amount of $1,234.65.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government told the court that in April 2013 in Red Lodge, the defendant knowingly possessed approximately 500 pounds of stolen explosive materials. While looking for a place to camp, Nesius drove down a dirt road and arrived in the area of a U.S. Forest Service (“USFS”) bunker which contained explosives. This explosives magazine/bunker is located several miles west of Red Lodge on USFS property. Nesius saw signs in the immediate vicinity warning of the explosives.
Shortly before dark, Nesius cut the locks with a pair of bolt cutters and loaded approximately 10 boxes of explosives into the back of his truck. This amounted to more than 500 pounds of explosives. The following morning Nesius transported the stolen explosives from Red Lodge to his hometown of Wheatland, Wyoming.
The investigation led agents to find boxes of explosives marked with USFS stickers abandoned by Wheatland reservoir. . An examination of the serial numbers on the recovered explosives determined that these were in fact the same stolen explosives taken from the USFS in Red Lodge, Montana.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Woodbury County Felon Involved with Drugs and Guns Gets Sentence of Eleven Years in Federal PrisonRead the Press Release
Contact: Steve Young
A Sioux City man was sentenced January 13, 2015, to more than eleven years in federal prison for conspiring to distribute methamphetamine, and for illegal possession of a firearm.
Nicholas Howard Juarez, age 31, from Sioux City, received his prison term after a May 21, 2014, guilty plea to conspiracy to distribute methamphetamine, and to being a felon in possession of a firearm. Juarez was convicted in 2004 in Dakota County Nebraska District Court for a felony offense, which precluded him from lawfully possessing firearms.
Information provided by the United States at the sentencing and change of plea hearing showed Juarez’s involvement during the Spring of 2013 through January 14, 2014 in a conspiracy that distributed at least 35 grams of actual (pure) methamphetamine. Juarez possessed multiple pounds of marijuana and methamphetamine as well as several firearms. On January 18, 2014, officers arrested Juarez, and during the arrest, seized three small baggies of methamphetamine from the defendant’s shirt pocket. That same day, a search warrant was executed at the defendant’s residence, and a stolen shotgun and several other firearms and ammunition were seized.
Juarez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Juarez was sentenced to 135 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Juarez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, which consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa Police Department; Bureau of Immigration and Customs Enforcement; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and the Woodbury County Attorney’s Office..
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4008.
Winter Garden Man Pleads Guilty to Defrauding FEMARead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Keith A. Greenwood (49, Winter Garden) today pleaded guilty to wire fraud. He faces a maximum penalty of 30 years in federal prison. The sentencing hearing is scheduled for April 20, 2015.
According to the plea agreement, in the aftermath of Hurricane Sandy, the Federal Emergency Management Agency (FEMA) began providing disaster assistance to individuals whose primary residences had been damaged by the hurricane. In November 2012, days after Hurricane Sandy struck New York City, Greenwood submitted an application for disaster assistance. In his paperwork, he falsely represented to FEMA that a property in Brooklyn, New York was his primary residence. The Brooklyn property was a building that Greenwood owned and rented to tenants. His true primary residence was in Winter Garden, Florida. Because his primary residence was not impacted by the hurricane, Greenwood was not entitled to the $17,385.73 in disaster assistance payments that FEMA awarded him based on his misrepresentations. On January 10, 2013, as part of an attempt to obtain another $5,000 in disaster assistance from FEMA, Greenwood faxed fake work receipts to FEMA that purported to be for repair work performed on the Brooklyn property. Ultimately, Greenwood admitted to investigators that he intentionally had told FEMA that the Brooklyn property was his primary residence, when he knew that his primary residence was in Florida.
This case was investigated by the U.S. Department of Homeland Security, Office of Inspector General, with assistance from the FEMA Fraud Prevention and Investigation Branch. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Wilkes-barre Man Sentenced to 5 Years in Federal Prison for Possessing Firearm in Connection with Drug TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 31-year-old Wilkes-Barre man was sentenced to five years in prison today by Senior U.S. District Court Judge Edwin M. Kosik for possessing a firearm in furtherance of a drug trafficking felony.
According to United States Attorney Peter Smith, the defendant, Tristan Somers, previously pleaded guilty to committing the crime in Wilkes-Barre during May 2014.
Somers was indicted by a federal grand jury on June 3, 2014, following an investigation by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Wilkes-Barre Police, and Kingston Police.
Judge Kosik ordered Somers to be placed on two years of supervised release following his prison sentence, and pay a $100 special assessment.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Wellpinit Man Sentenced to Federal Prison for Violent Domestic AssaultRead the Press Release
SPOKANE – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Gabriel Joseph Andrew, age 28, of Wellpinit, Washington, was sentenced today after having previously pleaded guilty on September 4, 2014 to one count of Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner in Indian Country. United States District Court Judge Stanley A. Bastian sentenced Andrew to a 39-month term of imprisonment, to be followed by three years of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, on March 18, 2014, Andrew assaulted his long-time girlfriend. The victim was punched and kicked by Andrew, resulting in numerous injuries including a large gash on the victim’s forehead.
Michael C. Ormsby stated, “Domestic violence continues to be a problem around the country. I commend the Spokane Tribal Police Department and the FBI for their leadership in addressing this problem and for their outstanding professional partnership exemplified by the successful investigation and prosecution of this matter. The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to aggressively prosecuting domestic violence assaults that occur within areas under federal jurisdiction, including the Indian reservations in the District.
This investigation was conducted by the Spokane Tribal Police Department and the FBI. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CR-14-0085-SAB
United States Settles with Lehigh County Landlord over Section 8 Rent Subsidy PaymentsRead the Press Release
PHILADELPHIA - The United States Attorney's Office announced today that Bellante Properties, of Lehigh County, PA, and its owners Vincent Fantozzi and Bernard Fantozzi, will pay the government $19,120 to resolve allegations surrounding federally-funded rental assistance payments it received. According to a civil complaint, Bellante Properties received rent subsidy payments from the Lehigh County Housing Authority while unlawfully requiring a tenant to pay supplemental rental payments disguised as trash removal fees.
The lawsuit was filed by Karen Schware, in the United States District Court for the Eastern District of Pennsylvania, under the whistleblower provisions of the False Claims Act. The False Claims Act allows private citizens to bring civil actions on behalf of the United States and to share in any recovery.
The Section 8 housing assistance program is designed to provide affordable housing to low-income families. According to the government’s complaint, between July 2007 and September 2013, Bellante Properties received payments from the Lehigh County Housing Authority under the Section 8 rent assistance program. In addition to receiving federally-funded Section 8 rent assistance payments, and approved rent payments from the tenant, the government alleges that Bellante Properties also unlawfully required the tenant to provide supplemental rent payments that had not been approved by the Lehigh County Housing Authority. The unlawful supplemental payments were disguised as trash removal fees. The parties have agreed to settle the dispute for a payment by the defendants of $19,120 to the United States. Bellante Properties and its principals, Vincent Fantozzi and Bernard Fantozzi, are also barred for three years from participation in HUD’s Section 8 program. As a whistleblower, Schware will receive a share of the settlement proceeds. Bellante Properties will also pay Schware’s legal fees.
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Department of Housing and Urban Development Office of Inspector General. The case was handled by Assistant U.S. Attorney Joel M. Sweet.
U.S. Attorney Barry Grissom to Speak on Martin Luther King Day in ManhattanRead the Press Release
TOPEKA, KAN. - U.S. Attorney Barry Grissom will speak on Martin Luther King Day in Manhattan.
Grissom will be the featured speaker for the Martin Luther King Prayer Breakfast. The event is set for 8 a.m. Jan. 19 at the Four Points Sheraton, 530 Richards Drive in Manhattan.
“Dr. King helped to bring about our nation’s greatest civil rights legislation, the Civil Rights Act of 1964 and the Voting Rights Act of 1965,” Grissom said. “As he always said, we’ve come a long way – and we still have a long way to go.”
Grissom was appointed by the president and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.
Two Men Sentenced for Roles in Conspiracy to Conduct Fraudulent Credit Card Transactions at North Texas Sam’s ClubsRead the Press Release
DALLAS — Two men who conspired together to use counterfeit credit cards to make hundreds of thousands of dollars of purchases at various Sam’s Club store locations in North Texas and Missouri, have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Yesterday, Leonel Martiatu, 29, was sentenced by U.S. District Judge Barbara M. G. Lynn to serve a total of 72 months in federal prison. Martiatu pleaded guilty in August 2014 to one count of conspiracy to commit access device fraud and one count of aggravated identity theft.
Co-conspirator Alian Gamboa, 20, who pleaded guilty to the same offenses, was sentenced last month by Judge Lynn to serve a total of 60 months in federal prison.
In addition, Judge Lynn ordered that Martiatu and Gamboa pay, jointly and severally, $340,497 in restitution. Both defendants have been in custody since their arrest in March on a related federal criminal complaint. Both have ties to Miami, Florida, according to detention orders entered in the case.
According to plea documents filed, from January 17, 2014, to approximately March 4, 2014, Martiatu and Gamboa conspired together and used counterfeit access devices encoded with credit card numbers – issued to others – to make purchases at Sam’s Club locations in and near Dallas and elsewhere, including Missouri. Together, the two obtained a total of $340,497 of things of value, affected interstate commerce, and acted with the intent to defraud the persons to whom the credit cards were issued.
According to the complaint filed in the case, on March 3, 2014, the defendants were located at a motel on N. Central Expressway in Dallas. The following day, a federal search warrant was executed at their room in the motel, and numerous items purchased from Sam’s Clubs were located.
The U.S. Secret Service investigated. Special Assistant U.S. Attorney Danial Gividen prosecuted.
Two Fresno Men Charged with Being Felons in Possession of A FirearmRead the Press Release
FRESNO, Calif. — Today, a federal grand jury in Fresno indicted two defendants in separate cases with being felons in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
The cases were brought as part of the Project Safe Neighborhoods (PSN) federal initiative. PSN brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
According to the first indictment, police officers conducted a probation search of an apartment in Fresno where Alan Anthonee Amey, 23, was residing after receiving a report that Amey had two guns and was threating to shoot the reporting party. Officers found a loaded Glock 23 .40‑caliber semi-automatic handgun and a loaded Ruger P95 9mm handgun. Amey is prohibited from possessing a firearm after being convicted in Fresno County of domestic violence in 2010 and 2011. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
The second indictment alleges that on December 6, 2014, Ernie Michael Rodriguez, 39, of Fresno, was stopped by officers when he failed to stop at a stop sign. Officers searched the vehicle and found an AA Arms, model AP9, 9mm firearm. The firearm had a high capacity magazine that contained 26 rounds of live ammunition. The vehicle had been reported stolen the previous day. Rodriguez is prohibited from possessing a firearm. Assistant United States Attorney Kimberly A. Sanchez is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges against defendants are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are the product of investigations by the Fresno Police Department.Tulsa Man Sentenced to 9 Years for Bank RobberyRead the Press Release
TULSA, Okla.—United States District Chief Judge Gregory K. Frizzell sentenced Aaron Joseph Rock, 24, of Tulsa, to serve 110 months in prison today for robbing a bank in Sand Springs, U.S. Attorney Danny C. Williams Sr. announced.
On June 14, 2014, Rock entered BancFirst in Sand Springs and presented a bank teller with a bank withdrawal slip on which was written the message, “Give me your money, I have a gun.” Rock then stole $1,232 from the bank.
Rock was indicted on August 5, 2014. United States Judge Frizzell also ordered Rock to pay $1,232 in restitution to the bank.
The case was investigated by the FBI and the Sand Springs Police Department. Assistant U.S. Attorneys R. Trent Shores and Clinton J. Johnson prosecuted on behalf of the United States.
U.S. v. Aaron Joseph Rock
Traffickers with Ties to Mexican Drug Cartel Sentenced to PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Mary Scriven today sentenced Mario Manzur Reyes (31, Tampa) and Santos Rene Herrera-Cruz (50, Tampa) for conspiring to distribute and possess with intent to distribute 500 grams or more of methamphetamine. Reyes was sentenced to five years and ten months in federal prison. Herrera-Cruz was sentenced to ten years’ imprisonment. Both pleaded guilty in September 2014.
According to court documents, Reyes oversaw the delivery of more than 16 pounds of highly pure methamphetamine from Laredo, Texas to the Tampa area. The methamphetamine had a street value of at least $250,000. Reyes, who was affiliated with a drug cartel operating out of Michoacán, Mexico, arranged for the drugs to be picked up on March 10, 2014, by one of his customers at a truck stop on U.S. 301. The customer, in turn, hired Herrera-Cruz to take possession of the shipment for him.
“Trafficking methamphetamine is a serious offense and a danger to our communities,” said Susan L. McCormick, special agent in charge of Homeland Security Investigations Tampa. “HSI, together with our federal, state and local law enforcement partners, is committed to combating the menace posed by illegal substances.”
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.
Three Toledo Residents Indicted for Forging Will to Fraudulently Obtain $2.2 MillionRead the Press Release
A 59-count federal indictment was unsealed today charging three Toledo residents for their roles in a conspiracy in which they are accused of forging a will to fraudulently gain control of an estate worth approximately $2.2 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Susan M. Pioch, 58; Margaret L. McKnight, 40, and Kurt L. Mallory, 51. They each face one count of conspiracy to commit bank fraud and mail fraud, 21 counts of bank fraud, seven counts of mail fraud and one count of aggravated identity theft. Pioch, McKnight and Mallory each face additional counts of money laundering. McKnight faces an additional count of structuring cash withdrawals, three tax counts and seven counts of causing a financial institution to fail to file a required report.
“This group lied, cheated and stole millions of dollars that had been amassed over a lifetime,” Dettelbach said.
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Martin E. Fewlas executed a will in 1993 devising his entire estate to his brother. If his brother did not survive Fewlas, the estate was to go to his nephew and then his great-nephew, identified in the indictment as JRM.
Fewlas owned the duplex located at 2557 Broadway Street in Toledo. He lived in the lower half and for approximately 10 years, McKnight and Mallory lived together in the upper half, according to the indictment.
Fewlas died on Aug. 28, 2010, leaving an estate worth approximately $2.2 million. On Sept. 2, 2010, McKnight, Mallory and Pioch – an attorney who had previously done legal work for McKnight and Mallory forged a will in Fewlas’ name. The forged will was drafted by Pioch and named McKnight as the executor and sole devisee of Fewlas’ assets. Pioch filed the forged will with the Lucas County Probate Court on or around Sept. 2, 2010. McKnight identified herself as executor of the estate and Pioch identified herself as attorney for the executor in probate court documents, according to the indictment.
By filing the forged will and concealing its fraudulent nature, Pioch, McKnight and Mallory succeeded in obtaining Probate Court authority to take possession of Fewlas’ assets. After obtaining those assets, they disbursed the assets to themselves for their own enrichment, according to the indictment.
Pioch, McKnight and Mallory used those assets to purchase, among other things, a used car dealership, a 2000 Discovery motorhome for $55,036, a classic 1972 Chevrolet El Camino for $17,000, a 2010 Kia Soul SUV for $21,338, as well as property. They also withdrew more than $500,000 in cash for Fewlas’ estate proceeds, according to the indictment.
JRM, Fewlas’ great nephew and the sole remaining devisee from the 1993 will, received nothing, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and James V. Moroney following an investigation by the Internal Revenue Service – Criminal Investigations and the Toledo Police Department.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Plead Guilty in Federal Court, 4th to Stand Trial in Arson-for-Profit SchemeRead the Press Release
PROVIDENCE, R.I. – Gbabia Kollie, 27, of Johnson City, Tenn., has pleaded guilty in federal court in Providence to participating in an alleged scheme to burn a multi-tenement building at 31-33 Ida Street in Providence in November 2013, in an alleged arson-for-profit scheme. Kollie has been detained in federal custody since December 5, 2013, when he was removed from an outbound international flight leaving Atlanta for Liberia and arrested by ATF agents.
Appearing on Wednesday before U.S. District Court Chief Judge William E. Smith, Kollie pleaded guilty to one count each of conspiracy to commit arson and arson. He faces statutory penalties totaling between 5 and 40 years in federal prison and a fine of up to $500,000 when he is sentenced on April 3, 2015.
Two co-conspirators, Abraham Kerkula, 21, of Pawtucket and Nakele Freeman, 21, of Providence, previously pleaded guilty to one count each of conspiracy to commit arson and arson. Kerkula is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on March 27, 2015. A sentencing hearing has not yet been scheduled for Nakele Freeman. Both are detained in federal custody.
A fourth defendant in this matter, Kormahyah Karmue, 39, of, Providence, owner of the Ida Street property allegedly targeted to be burned, is awaiting trial on charges of conspiracy to commit arson, arson, wire fraud, mail fraud and theft of U.S. government funds. It is alleged in a federal indictment returned in May 2014, that Karmue masterminded the scheme in order to collect insurance payments. He has pleaded not guilty to the charges and is detained in federal custody.
The guilty pleas are announced by United States Attorney Peter F. Neronha; Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Providence Public Safety Commissioner Steven M. Paré.
At the time of his guilty plea, Kollie admitted to the court that he enlisted the assistance of Nakele Freeman to participate in the alleged conspiracy. At the time of their guilty pleas, Freeman and Kerkula admitted that late in the evening of November 1 and in the early morning hours of November 2, 2013, Freeman asked Kerkula to give him a ride to a location where he was going to set fire to a building for “a lot of money.”
After traveling together to purchase 5-gallon gasoline storage containers and gasoline, Freeman and Kerkula traveled to the targeted property where Freeman removed the gasoline from the vehicle and entered the building. Freeman admitted to the court that he entered a vacant third floor apartment and spread the gasoline, and a fire ignited. He fled the building and met Kerkula at a designated location on a nearby side street.
According to court documents and information presented to the court, it is alleged that Kollie arranged with Freeman to set fire to the building in return for a payment of a portion of the expected insurance settlement. It is alleged that Kollie had several telephone conversations with Freeman while Freeman and Kerkula were in the vehicle en route to the Ida Street property.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The investigation was conducted by ATF, the Providence Fire Department Arson Squad and the Providence Police Department Detective Bureau.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Three More Sent to Federal Prison for Roles in Large Scale Marijuana ConspiracyRead the Press Release
Contact: Steve Young
Three men are headed to federal prison for their roles in a marijuana trafficking organization that brought large amounts of high-priced marijuana from Colorado and California to Iowa.
Jesse Tolen, Shannon Ehlts, and Corey Marx all pled guilty to conspiracy to distribute marijuana and were sentenced today in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Tolen had also pled guilty to conspiracy to commit money laundering.
- Tolen, 36, from Castella, California, was sentenced to 24 months’ imprisonment and will report to the Bureau of Prisons on a later date.
- Ehlts, 38, from Lowden, Iowa, was sentenced to nine months’ imprisonment and will report to the Bureau of Prisons on a later date.
- Marx, 29, from Cedar Rapids, Iowa, was sentenced to eight months’ imprisonment followed by a two month period of home detention. Marx is being held in the United States Marshal’s custody until he can be transported to a federal prison
All three must also serve three-year terms of supervised release after their prison terms. There is no parole in the federal system.
Tolen, Ehlts, and Marx were the last of twelve people to be sentenced in the conspiracy. Sentences for the twelve ranged from probation to 46 months’ imprisonment. The organization was dismantled through a DEA investigation that involved court-authorized wiretaps on multiple cellular phones.
The cases were prosecuted by Assistant United States Attorneys Justin Lightfoot and Matthew Cole, and investigated by the Drug Enforcement Administration (DEA) Task Force as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice. The DEA Task Force consists of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement..
Court file information is available at https://ecf.iand.uscourts.gov/ cgi-bin/login.pl. The case file numbers for the twelve sentenced defendants are as follows: Mark Swanson 14-CR-66; Nels Nelson 14-CR-6; Chad Straub 14-CR-20; Robert and Brenda Leonard 14-CR-37; Tolen 14-CR-39; Matthew Fritz 14-CR-78; Ehlts 14-CR-79; Tyler Scheer 14-CR-82; Marx 14-CR-85; James Allen 14-CR-86; and Cory Kintzel 14-CR-92
- Tolen, 36, from Castella, California, was sentenced to 24 months’ imprisonment and will report to the Bureau of Prisons on a later date.
Three Mexican Brothers Plead Guilty to Sex Trafficking and Sex Trafficking ConspiracyRead the Press Release
Earlier this week and today, in federal court in Brooklyn, New York, three brothers pled guilty to sex trafficking charges. The defendants, who are Mexican nationals, transported Mexican females from Mexico to the United States illegally, forcing them to work as prostitutes in New York City and elsewhere. At the time of sentencing, defendants Jorge Estrada-Tepal and Ricardo Estrada-Tepal, who pled guilty to sex trafficking conspiracy and sex trafficking involving force, fraud and coercion, face a mandatory term of imprisonment of 15 years, with a maximum possible sentence of up to life in prison. Defendant Victor Leonel Estrada-Tepal, who pled guilty to sex trafficking conspiracy and sex trafficking of a minor, faces a mandatory term of imprisonment of ten years, with a maximum possible sentence of up to life in prison. The defendants were arrested in January 2014. These guilty pleas are the latest in the Office’s comprehensive anti-trafficking program, which has to date indicted over 55 defendants in sex trafficking cases and rescued over 115 victims, including over 25 minors.
The guilty pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York.
“The defendants are classic predators: they targeted women and a young girl in Mexico, and pushed them into a life of sexual slavery in Mexico and the United States. As our trafficking cases have repeatedly shown, we will not relent against those who choose to subject victims to modern-day slavery in an effort to line their own pockets,” stated United States Attorney Lynch. Ms. Lynch thanked the Mexican authorities and other entities that assisted with the investigation and successful prosecution of this case.
“These men preyed on innocent women, luring them into the United States under false pretenses and then cruelly enslaving them to satisfy their own greed in a ruthless prostitution scheme,” said HSI Special Agent-in-Charge Hayes. “Prosecuting human traffickers and rescuing human trafficking victims is a priority of this office and the Department of Homeland Security. These guilty pleas highlight that commitment and serve as a warning to other predators that law enforcement at all levels is determined to dismantle these heartless human trafficking organizations.”
As set forth in court documents, and discussed during the guilty plea proceedings, the sex trafficking involved at least four victims, and the defendants used various methods to force these women to work in prostitution, ranging from threats of violence, assault and psychological coercion. One minor victim, identified at the guilty plea proceedings as Jane Doe 4, was under the age of 18 when she was trafficked to the United States. During the guilty plea held today, defendant Jorge Estrada-Tepal admitted that, starting in 2007, he and his brothers entered into a conspiracy to transport women from Mexico to Queens to engage in prostitution, and that threats of force were used against the victims. Likewise, yesterday, Ricardo Estrada-Tepal admitted that he and his brothers brought women from Mexico to the United States, where they were forced to work in prostitution, and that he and his brothers did not tell the women the “real truth about why they were coming to the United States.” On Tuesday, defendant Victor Leonel Estrada-Tepal admitted that he agreed with his brothers to force women to work in prostitution, including his wife, Jane Doe 4, who was 17 years old at the time, who he brought from Mexico to Queens to have her engage in prostitution.
Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in the Procuraduría General de la República (PGR), the Secretaría de Seguridad Pública (SSP), Procuraduría Social de Atención a las Víctimas de Delitos (PROVICTIMA), and non-governmental partners in the United States and Mexico in a Bilateral Human Trafficking Enforcement Initiative. Through this Initiative, the United States and Mexico have worked together to bring high-impact prosecutions under both U.S. and Mexican law to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, prosecute human traffickers, rescue human trafficking victims, and reunite victims with their families. Other significant bilateral cases have been prosecuted in Atlanta, Georgia, and Miami, Florida.
The government’s case was prosecuted by Assistant United States Attorneys Taryn A. Merkl and Melody Wells.
The Defendants:
RICARDO ESTRADA-TEPAL
Age: 33
Queens, NY
VICTOR LEONEL ESTRADA-TEPAL
Age: 29
Queens, NY
JORGE ESTRADA-TEPAL
Age: 37
Queens, NY
E.D.N.Y. Docket No. CR-14-105 (MKB)
- This release has been removed
Tarrant County Woman Sentenced to 27 Months in Federal Prison for Theft of Government FundsRead the Press Release
DALLAS — A Keller, Texas, woman who continued to collect a family member’s Social Security retirement insurance benefits even after that family member died, was sentenced this afternoon, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jeani Mulligan, 43, was sentenced by U.S. District Judge Jane J. Boyle to serve 27 months in federal prison. Mulligan, who pleaded guilty in September 2014 to one count of theft of government funds, must also pay a total of $124,825 in restitution. At the conclusion of the hearing, Judge Boyle remanded Mulligan into federal custody.
According to documents filed in the case, Mulligan admitted that she received approximately $124,825 in Social Security benefits to which she was not entitled. Specifically, from approximately December 30, 2000, to February 2013, Mulligan received Title II Retirement Insurance benefits paid to her mother-in-law, to which she knew she was not entitled. Mulligan continued to receive these funds after her mother-in-law died on December 30, 2000.
The case was investigated by the Social Security Administration’s Office of the Inspector General. Special Assistant U.S. Attorney Nicole Dana prosecuted.
Suspected Alien Smuggler and Four Others IndictedRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned five (5) indictments arising from an investigation into the transportation of illegal aliens through the Middle District of Louisiana.
Raul Vega, age 60, of Homestead, Florida, was charged in a criminal complaint filed on December 11, 2014, with transporting illegal aliens within the United States for commercial or private financial gain. On December 17, 2014, a federal grand jury returned an indictment charging Vega with the same offense. According to the indictment, on December 10, 2014, the defendant was driving a vehicle on Interstate 12 in Baton Rouge containing a total of ten (10) illegal aliens, including four (4) individuals who allegedly had previously been deported from the United States. Those four individuals – David Raymundo-Matom, Antonio Pedro-Lorenzo, Jose Ramirez-Arroyo, and Gabriel Salgado-Lozano – were also indicted by the grand jury on December 17, and each stands charged with illegal re-entry into the U.S. by a previously-deported alien.
This matter is being investigated by the Baton Rouge offices of the U.S. Border Patrol and the U.S. Department of Homeland Security, Homeland Security Investigations (HSI). This matter is being prosecuted by Assistant U.S. Attorney Jessica M.P. Thornhill.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Streetsboro Man Indicted on Child Pornography ChargesRead the Press Release
A federal indictment was unsealed that charges a Streetsboro man with with two counts related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland Office.
Ronald Flick, 46, was charged with one count of receiving and distributing visual depictions of minors engaged in sexually explicit conduct and one count of possessing computers, hard drives and compact discs containing child pornography.
The case is being prosecuted by Assistant United States Attorney Michael Sullivan following an investigation by the Federal Bureau of Investigation, the Ohio Bureau of Criminal Investigation and the Streetsboro Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Stockton Man Pleads Guilty to Illegally Selling FirearmsRead the Press Release
SACRAMENTO, Calif. —Donovan Torres, 21, of Stockton, pleaded guilty today to illegally selling firearms, United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 15, 2014, Donovan Torres participated in the illegal sale of three firearms to an undercover special agent working with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. Then, on January 31, 2014, Torres sold the agent a Masterpiece Arms MPA30, 9mm pistol for $1,350. And on February 13, 2014, Torres met with a second undercover ATF agent and sold him an Izhmash Saiga, .223‑caliber rifle for $1,600. These illegal gun sales all took place inside a residence in Stockton. Torres did not have a federal license to sell firearms.
This case is the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Donovan Torres is scheduled to be sentenced by United States District Judge Morrison C. England Jr. April 9, 2015. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
State Inmate Sentenced on Conviction of Forging A Federal Judge’s SignatureRead the Press Release
PITTSBURGH – An inmate at SCI-Houtzdale, located in Houtzdale, Pennsylvania, pleaded guilty and was sentenced in federal court in Pittsburgh on a charge of forging a judge’s signature, United States Attorney David J. Hickton announced today.
Michael J. Kramer, 31, formerly of New Kensington, Pa., and currently serving a sentence for a state parole violation at SCI Houtzdale, pleaded guilty and was sentenced to six months’ incarceration, followed by three years of supervised release, on one count before United States District Judge Arthur J. Schwab.
According to information provided to the Court, on April 4, 2014, a Records Specialist at SCI Houtzdale contacted the United States Marshals’ Office with concerns that the institution may have received a falsified “Order of Court” in which it was written that “Michael J. Kramer’s guilty plea be and as the same is VACATED.” The document was present in Kramer’s transport file. Kramer had recently been returned to Houtzdale from SCI Pittsburgh, and this folder would have returned to Houtzdale with him.
At the time, Kramer was in state custody serving a parole violation and was due to be released from state custody in August 2014. A federal detainer followed him, however, because he also had pleaded guilty and was awaiting sentencing in federal court in Pittsburgh on charges of armed bank robbery, possession of a firearm by a convicted felon, and using a firearm in relation to a crime of violence. The Records Specialist at Houtzdale believed the Court Order purportedly vacating Kramer’s conviction was a fraudulent document because she did not observe a court seal, the order contained two different fonts, the order did not contain an original signature, and the order was folded six ways, as though someone had placed it in his pocket.
The Marshals reviewed Kramer’s bank robbery court docket online and confirmed that no such order was actually filed dismissing his conviction. The Marshals also traveled to Houtzdale to interview Kramer, and Kramer confessed to the Marshals that he created this fake Court Order in the law library at the prison.
Last month, Kramer was sentenced by the Honorable David S. Cercone to 20 years (240 months) in prison, followed by five years of supervised release, on his armed bank robbery and firearms conviction. Judge Schwab ordered that the six-month sentence for the forgery conviction should run concurrently with the robbery and firearms conviction
Assistant United States Attorneys Barbara K. Doolittle, Troy Rivetti, and Conor Lamb prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Borough of Coraopolis Police Department, and the United States Marshals’ Service for the investigation leading to the successful prosecution of Michael J. Kramer.
State Employee Pleads Guilty to Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL CARTER, 51, of New Haven, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of tax evasion.
This matter stems from an Internal Revenue Service investigation into high income State of Connecticut employees who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns. The investigation revealed that certain state employees submitted fraudulent W-4 forms claiming numerous exemptions and had no money withheld from their wages.
According to court documents and statements made in court, CARTER has been employed by the Connecticut Department of Mental Health and Addiction Services, working as a nurse at the Connecticut Valley Hospital in Middletown since 2005. CARTER submitted a false Form W-4 to the state indicating that he had 99 exemptions and was exempt from tax withholding. As a result, no money was withheld from his wages. During the 2010 through 2012 tax years, CARTER paid no federal income taxes on more than $282,000 in income he received, resulting in a federal tax loss of $53,344.
Judge Thompson scheduled sentencing for April 14, 2015, at which time CARTER faces a maximum term of imprisonment of five years and a fine of up to $250,000. He also is required to pay back taxes, plus interest and penalties.
CARTER was charged by indictment on April 9, 2014, and is currently released on bond.
This ongoing investigating is being conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan Wines.
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(203) 821-3722 [email protected]South Florida Man Sentenced for Oxycodone Distribution and Identity TheftRead the Press Release
BOSTON – A Miami man operating throughout South Florida was sentenced on Jan. 9, 2015, for his role in an oxycodone distribution conspiracy involving thousands of oxycodone pills and stolen identities of Puerto Rican residents.
Jose Perez, 40, was sentenced by U.S. District Court Judge Richard G. Stearns to 46 months in prison and three years of supervised release. In April 2014, Perez pleaded guilty to conspiracy to possess with intent to distribute and to distribute oxycodone, distribution of oxycodone, and identity theft.
In February 2011, a federal investigation into the oxycodone distribution organization operated by Perez in Florida and several co-conspirators in the Boston area revealed that from at least 2011 through January 2013, Perez sold large quantities of oxycodone pills to co-conspirators in Massachusetts and Rhode Island who distributed the oxycodone pills in Massachusetts. Beginning in November 2011, Perez initiated an identity theft and tax refund scheme where he sold hundreds of legitimate names, dates of birth, and Social Security numbers of Puerto Rican residents to an undercover federal agent, intending that the identities be used to fraudulently obtain tax refunds. Over the last several years, increasing numbers of drug dealers have diversified their operations to include lucrative identity theft and tax fraud schemes.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. The case was prosecuted by Assistant U.S. Attorney Christophe F. Bator of Ortiz’s Drug Task Force Unit.
Snyder Dentist Indicted on Tax ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Charles Weber, 59, of Snyder, NY, with making and subscribing a false tax return. The charges carry a maximum penalty of three years in prison, a fine of $250,000 or both.Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that Weber is a dentist with a private practice in Williamsville, NY. In April 2009, the defendant filed tax returns for 2006 and 2007, falsely claiming that he was not a United States citizen and had not been present in the United States at any time during 2006 or 2007. Weber also falsely stated that his only taxable income in 2006 and 2007 came from dividends, failing to disclose that he had been engaged in the operation of his dental practice during those years and as a result received reportable income. The defendant signed the tax returns under the penalties of perjury.
Weber was arraigned before U.S. Magistrate Judge Hugh B. Scott.
The indictment is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, under the direction Special Agent-in-Charge Shantelle P. Kitchen.
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.
Shreveport Woman Pleads Guilty to Stealing More Than $39,000 in Social Security PaymentsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport woman pleaded guilty to stealing more than $39,000 in Social Security benefit payments.
Stephanie D. Lynn, 49, of Shreveport, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of theft of government funds. According to evidence presented at the guilty plea, from May 2009 to December 2013, Lynn cashed and used her deceased son’s Social Security benefit checks, to which she was not entitled. She also did not inform the Social Security Administration that her son had died and submitted paperwork stating that he was alive in order to continue receiving the checks. The total amount taken was $39,435.
Lynn faces up to 10 years in prison, three years of supervised release, a $250,000 fine and restitution. A sentencing date of April 29, 2015 was set.
The Social Security Administration, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
Sentencings for January 8 - 14, 2015Read the Press Release
Anthony Stoner, 29, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 14, 2015, for conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and for possession of firearms in furtherance of a drug trafficking crime. Stoner was arrested in Gillette, Wyoming. He received 180 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Sergio Bucio-Cuellar, 47, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 14, 2015, for illegal re-entry of a previously deported alien into the United States. Bucio-Cuellar was arrested in Cheyenne, Wyoming. He received 12 months imprisonment, was ordered to pay a $100.00 special assessment, and is subjection to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Miguel Angel Rodriguez-Bustos, 41, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 14, 2015, for illegal re-entry of a previously deported alien into the United States. Rodriguez-Bustos was arrested in Rawlins, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Freddy Urbina, 42, of Nicaragua, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 13, 2015, for illegal re-entry of a previously deported alien into the United States. Urbina was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Raul Gomez-Medina, 40, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 12, 2015, for illegal re-entry of a previously deported alien into the United States. Gomez-Medina was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Oscar Asencio-Melian, aka Oscar Ascencio-Ramirez, Luis Orland Polo-Abadia, and Oscar Omar-Rodriguez, 40, of Guatemala, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 12, 2015, for illegal re-entry of a previously deported alien into the United States and for misuse of a social security number. Asencio-Melian was arrested in Sundance. He received 15 months imprisonment, to be followed by three years of supervised release, was ordered to pay a $200.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Camerron Morris, 37, of Green River, Wyoming, was sentenced by Chief Federal District
Court Judge Nancy D. Freudenthal on January 12, 2015, for conspiracy to possess with intent to distribute heroin. Morris was arrested in Green River, Wyoming. She received 15 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a
$100.00 special assessment and a $200.00 fine. This case was investigated by the Sweetwater
County Sheriff’s Office, the Wyoming Division of Criminal Investigation and the U.S. Drug
Enforcement Administration.Trevor James Tucker, 42, of Ogden, Utah, was sentenced by Federal District Court Judge Scott
W. Skavdahl on January 9, 2015, for conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine. Tucker was arrested in Salt Lake City, Utah. He received 57 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the
Wyoming Division of Criminal Investigation.Lonnie Lindell, 43, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court
Judge Nancy D. Freudenthal on January 9, 2015, for theft of government money. Lindell was arrested in Cheyenne, Wyoming. He received two years of probation, with special conditions, and was ordered to pay a $100.00 special assessment and restitution in the amount of
$149,824.00. This case was investigated by the U.S. Social Security, Office of the Inspector
General.Derek Keith Taylor, 42, of Layton, Utah, was sentenced by Chief Federal District Court Judge
Nancy D. Freudenthal on January 8, 2015, on one count of conspiracy to possess with intent to distribute, and to distribute, at least 500 grams of methamphetamine; one count of possession with intent to distribute methamphetamine; and one count of conspiracy to launder money.
Taylor was arrested in Evanston, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.Sacramento Drug Dealer Sentenced to More Than 21 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — John Winton Harris, 31, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to 21 years and 10 months in prison for possessing more than 163 grams of crack cocaine, United States Attorney Benjamin B. Wagner announced.
According to evidence presented at trial, Sacramento police officers responded to a domestic violence complaint at an apartment complex in Sacramento. When the officers entered the apartment, they found Harris crouched in the kitchen area. He was moved to a different location in the apartment, and when officers found a large amount of cocaine base where he had been crouching in the kitchen, Harris attempted to flee. Harris claimed he did not live in the apartment, but officers found mail addressed to him at that address, as well as other personal items belonging to him in the apartment. Harris’s cellphone revealed photographs of Harris in the same apartment with a large amount of currency only days before, as well as text messages indicating he was involved in the distribution of cocaine base that very week.
The sentence imposed on Harris was based not just upon the circumstances of his offense, but also his substantial criminal history, which rendered him a career criminal under federal law. Another factor the court considered in imposing sentence was the finding that Harris obstructed justice by testifying falsely at a hearing held during his trial.
This case was the product of an investigation by the United States Drug Enforcement Administration and the Sacramento Police Department. Assistant United States Attorneys Todd Pickles and Chris Highsmith prosecuted the case.
Rochester Man Charged with Enticement of A Minor and Production of Child PornogrpahyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Roger Eric Powell, 48, of Rochester, NY, was charged by criminal complaint with enticement of a minor and production of child pornography. Enticement of a minor carries a mandatory minimum sentence of 10 years in prison, a maximum of life and a fine of $250,000. Production of child pornography carries a mandatory minimum sentence of 15 years, a maximum of 40, and a $250,000 fine.Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, on January 2, 2015, a complainant told law enforcement officers that her child, aged 14, had been engaging in sexually explicit communications with the defendant. When the child spoke with officers, the child advised that the two communicated on Facebook and that Powell sent two explicit images of himself to the child. The child also indicated that the defendant made multiple requests for explicit photos in return. In order to get the defendant to stop bothering the child, the child sent an explicit picture to Powell.
Law enforcement officers reviewed the child’s Facebook account and saw the exchanges between the defendant and the child. Officers then took over the Facebook account and engaged in communications with Powell. The defendant revealed in those communications about having engaged in prior sexual conduct with the child that was later confirmed by the child to law enforcement. A search warrant was executed at Powell’s residence and the defendant admitted to engaging in inappropriate communications with the child.
The criminal complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force. The Task Force includes members of the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Monroe County Sheriff’s, under the direction of Sheriff Patrick O’Flynn, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero. .
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.
Qazi Brothers Charged with Additional Terrorism Violations and Attempted Murder of Two Deputy U.S. MarshalsRead the Press Release
Qazi brothers, naturalized U.S. citizens originally from Pakistan, were charged today with additional terrorism violations and attempted murder of two Deputy U.S. Marshals while the brothers were in custody.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, John Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF) made the announcement.
Raees Alam Qazi, 22, and Sheheryar Alam Qazi, 32, were previously charged in November 2012 with conspiracy to provide material support to terrorists and conspiracy to use a weapon of mass destruction (explosives).
As alleged in the Superseding Indictment:
From at least July 2011 through Nov. 29, 2012, the defendants conspired to provide material support and resources – including property, service, lodging, communications equipment, and personnel – knowing and intending that this support be used in preparation for and in carrying out a violation of law – namely, a conspiracy to use a weapon of mass destruction. The indictment further alleges that during this time frame the defendants conspired to use a weapon of mass destruction (explosives) against persons and property within the United States. During the same time frame, the indictment alleges that the Qazi brothers conspired and attempted to provide material support to al-Qa’ida and al-Qa’ida in the Arabian Peninsula.
As further alleged, on or about April 8, 2014, while being moved within the United States Courthouse complex, the Qazi brothers simultaneously motioned with their heads to cause the Deputy U.S. Marshals to look at the ceiling, the Qazi brothers then simultaneously punched the Deputies in the face and struggled with them.
Further, while struggling with the Deputy U.S. Marshals, the Qazi brothers attempted to use potentially lethal force on them while exclaiming “Allahu Akbar,” an Arabic exhortation meaning “God is Great.”
The Superseding Indictment charges the Qazi brothers with the following counts:
Conspiring to Provide Material Support to a Foreign Terrorist Organization, al-Qa’ida and al-Qa’ida in the Arabian Peninsula;
Attempting to Provide Material Support to a Foreign Terrorist Organization, al-Qa’ida and al-Qa’ida in the Arabian Peninsula:
Conspiring to Forcibly Assault a Federal Employee, a deputy United States Marshal;
Forcibly Assaulting a Federal Employee, a deputy United States Marshal; and
Attempting to Murder a Federal Employee, a deputy United States Marshal.
The charge of conspiring to provide material support to terrorists carries a maximum potential sentence of 15 years in prison. The charge of conspiracy to use a weapon of mass destruction carries a maximum potential sentence of life in prison. The charge of conspiring to provide and providing material support to a Foreign Terrorist Organization, al-Qa’ida and al-Qa’ida in the Arabian Peninsula, carries a maximum potential sentence of 15 years in prison.
The charge of conspiring to forcibility assault a federal employee carries a maximum potential sentence of 5 years in prison; the charge of forcibly assaulting a federal employee carries a maximum potential sentence of 20 years in prison; and the charge of attempting to murder a federal employee carries a maximum potential sentence of 20 years in prison.
The case is being investigated by the FBI’s South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Adam Fels, of the U.S. Attorney’s Office for the Southern District of Florida, and Jennifer Levy, Trial Attorney, Counterterrorism Section of the Justice Department’s National Security Division.
An indictment contains mere allegations. Defendants are presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Previously Convicted Sex Offender Sentenced to over 17 Years in Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Brian P. Davis, age 50, of Dundalk, Maryland, today to 210 months in prison, followed by lifetime supervised release, for distribution of child pornography. Judge Quarles ordered that upon his release from prison, Davis must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). In 1998, Davis was convicted of the sexual abuse of a minor in the Circuit Court of Baltimore County and as a result was required to register as a sex offender.The sentence 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; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Davis’ plea agreement, in 2005 he began using a file sharing network to search for, receive and distribute child pornography. Such networks are used to exchange and share files directly between computer users. On November 24, 2013, an undercover Baltimore County Police detective used a computer connected to the internet to conduct an investigation into the sharing of child pornography. The detective downloaded an image depicting a minor engaging in sexually explicit conduct from a user who was making files containing child pornography available for others to download. The user sharing files was subsequently identified as Davis and a search warrant was executed at Davis’ residence on December 11, 2013. When officers from the Baltimore County Police Department entered the residence to conduct the search, they found Davis’ desk top computer in the basement. The computer was on and running a file sharing network. A detective conducted a forensic preview of the computer and located images depicting children engaged in sexually explicit conduct. A full forensic examination of the computer found more than 600 images of child pornography, including images depicting prepubescent minors engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, Maryland State Police Internet Crimes Against Children Task Force, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who prosecuted the case.
Pittsburgh Man Pleads Guilty to Child Pornography ChargeRead the Press Release
PITTSBURGH – An Allegheny County man pleaded guilty in federal court to a charge of receipt of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
James Kerkan, 49, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from on or about Aug. 13, 2014, and continuing until on or about Sept. 3, 2014, Kerkan received images and videos containing material depicting the sexual exploitation of minors.
Judge Bissoon scheduled sentencing for April 30, 2015, at 2:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police, Federal Bureau of Investigation, and the Allegheny County District Attorney’s Office conducted the investigation that led to the prosecution of Kerkan.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Physician-Owned Forest Park Medical Center to Pay $215,000 to Resolve Kickback Allegations Under Civil Settlement with United StatesRead the Press Release
Forest Park Medical Center, LLC (“FPMC”), a physician-owned hospital located in Dallas, Texas, will pay $215,000 under a civil settlement with the United States Department of Justice, announced Acting United States Attorney Richard L. Durbin, Jr. The settlement resolves allegations that the hospital paid kickbacks in exchange for referrals of patients covered by the federal workers’ compensation program, known as FECA.
FECA, a federal health care program administered by the United States Department of Labor (“DOL”), provides workers’ compensation benefits to federal workers who suffer job-related injuries. The program covers roughly 3 million federal civilian and postal employees. Benefits include payment of a covered worker’s medical and rehabilitation expenses. DOL uses federal funds to reimburse health care providers that treat injured workers covered by FECA.
The Department of Justice investigated whether FPMC violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), and submitted false claims for reimbursement to the FECA program in violation of the False Claims Act, 31 U.S.C. §§ 3729-3733. Between August 1, 2011 and March 1, 2012, FPMC caused payments to be made to individuals and entities located in the Western District of Texas for “marketing” and “management” services. The United States contends that these payments were, in reality, unlawful kickbacks made in exchange for the referral of patients covered by FECA in violation of the Anti-Kickback Statute. The United States further contends that, by billing the FECA program for services rendered to patients whose referrals were secured through kickbacks, FPMC submitted false claims for payment to the DOL in violation of the False Claims Act, which provides for treble damages and civil penalties.
Under the settlement announced today, FPMC will pay $215,000 to resolve the hospital’s potential False Claims Act liability. The settlement, which follows an earlier resolution reached with the United States Attorney’s Office for the Northern District of Texas regarding claims submitted to the TRICARE program, is not an admission of liability by FPMC or its affiliates. FPMC cooperated with the government’s investigation.
Acting United States Attorney Durbin commended the efforts of the investigating agencies, including the United States Postal Service -- Office of the Inspector General, United States Army Criminal Investigation Division -- Major Procurement Fraud Unit, Federal Bureau of Investigation, and the United States Department of Labor -- Office of the Inspector General. Assistant United States Attorney John J. LoCurto and Auditor Jamie Cole, CPA handled the investigation for the United States Attorney’s Office.
Physical Therapy Clinic Owner and Employee Sentenced for FraudRead the Press Release
BOSTON – The owner and operator of a Brockton physical therapy company and her employee were sentenced today for defrauding insurance companies in connection with physical therapy services purportedly provided to patients involved in car accidents.
Walkyrie Massie, a/k/a Vicky Lopes, 39, and Edward Rossi, 65, of Rochester, were sentenced by U.S. District Court Judge Richard G. Stearns to 30 months and 18 months, respectively, two years of supervised release, and ordered to pay $174,597 in restitution to the defrauded insurance companies. Massie and Rossi pleaded guilty to conspiracy to commit mail fraud and two counts of mail fraud in September and August 2014, respectively.
“The scam perpetrated by Massie and her employees defrauded insurance companies and deprived injured patients of proper care,” said U.S. Attorney Carmen M. Ortiz. “Patients deserve quality care and insurance providers need honest care-givers. This kind of fraud is corrosive to our healthcare system.”
“Westgate Physical Therapy was solely motivated by profit rather than patient care when it forged patient records and billed for medical care never provided scamming private insurance companies out of hundreds of thousands of dollars,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The FBI is dedicated to aggressively investigating this type of criminal activity because it has a great impact not only on private insurance companies but on the economy as a whole as well.”
Massie, the owner and operator of Westgate Physical Therapy in Brockton, and her employees submitted fraudulent medical progress notes to insurance companies, in connection with physical therapy the company purportedly provided to patients involved in car accidents. Specifically, Rossi, a licensed physical therapy assistant, was supposed to provide physical therapy to patients several times a week until the physical therapist, Deidre Chouinard, re evaluated the patient and signed off that the treatment was complete. Westgate would then send a bill to the responsible insurance company. The progress notes contained in the patients’ chart would also be used to determine personal injury protection payments, as well as any bodily injury settlements with other insurance companies.
In reality, for the majority of patients, Rossi simply filled in cookie-cutter treatment notes for patients who either never showed up that day, came into the clinic for mere minutes, or were not seen at all by Rossi because he was not present. Furthermore, Rossi signed notes for treatments that Massie performed, even though she was not licensed to do so. Based on these fraudulent submissions, from 2009 to 2011, Westgate billed insurance companies more than $400,000 and received more than $174,000 in payments.
During the investigation into Westgate’s activities, federal law enforcement used a cooperating witness, who claimed to have been in a car accident and sought treatment at Westgate. From March through June 2011, recordings made of this individual’s visits to Westgate captured how Massie boasted about forging the individual’s name to the sign-in sheets to falsely show that he had come in for treatment when he had not. In one recorded conversation, Rossi can be heard demonstrating how the therapy exercise equipment worked so that the individual would be able to describe the physical therapy if he were called in to give a statement to the insurance company about his injuries and treatment at Westgate.
In December 2014, Chouinard, Westgate’s physical therapist, was sentenced to three years of probation. A fourth defendant is awaiting trial.
U.S. Attorney Ortiz and SAC Lisi made the announcement today. The Massachusetts Insurance Fraud Bureau also assisted in this investigation. The case was prosecuted by Assistant U.S. Attorney Shelbey Wright.
Payroll Service Company Owners Indicted for Theft of over $2.5 Million Set Aside by Clients to Pay Federal and State TaxesRead the Press Release
AccuPay Owners Allegedly Stole Money Designated for IRS and Maryland Tax Agency
Baltimore, Maryland – A federal grand jury indicted Beverly Carden, age 53, and her husband Kevin Carden, age 54, both formerly of Bel Air, Maryland, yesterday on charges arising from a scheme to steal at least $2.5 million from their clients and the IRS.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“The indictment alleges that the defendants falsely told clients that their money was being used to pay their taxes, when in fact the defendants were stealing it,” said U.S. Attorney Rod J. Rosenstein. “Customers who hire payroll services companies expect that they will not have to worry, but this case is a reminder that people always need to be vigilant when they trust someone with their money.”
The defendants owned and operated AccuPay, Inc., a payroll service company located at 206 E. Churchville Road in Bel Air. Part of the payroll services that AccuPay offered to its clients was to complete and file federal and state tax returns, collect the funds from the clients to pay the taxes, and then pay those taxes to the taxing authorities. Beverly Carden oversaw all aspects of AccuPay’s business. Kevin Carden was responsible for inserting the clients’ payroll information into software that generated tax forms to be filed with the taxing authorities and for paying the clients’ employment taxes.
According to the 16 count indictment, from 2006 to March 2013, the defendants withdrew from the clients’ funds the full amount of taxes owed, but then paid the taxing authorities only a portion of such funds, fraudulently retaining at least $2.5 million for themselves. The defendants misrepresented to their clients that those funds had been paid to the relevant taxing authorities.
The indictment alleges that in order to keep the clients unaware that their taxes were not fully paid, Kevin Carden changed the address listed for certain clients to the address for AccuPay, without the clients’ consent, causing all future IRS correspondence, including notices of underpayment, to be sent to AccuPay rather than the client. In the instances in which clients received notice from the taxing authority that they had not paid the taxes they owed in full, the defendants falsely advised the clients that the underpayment was due to a mistake by the taxing authority, an error made by AccuPay employees or the software AccuPay used to file tax returns.
The indictment further alleges that to contact the IRS about her clients’ employment tax issues without her clients’ knowledge, Beverly Carden affixed or caused to be affixed client signatures on IRS power of attorney forms without the clients’ permission.
In late 2011, the defendants allegedly sent their clients a letter introducing a new chief financial officer (CFO) at AccuPay who was to audit all tax deposits and filings for all tax clients back to 2009 for compliance and correctness. The letter stated that the CFO was an Ivy League graduate with degrees in both accounting and law, who had over 30 years experience as a CPA, was formerly a special investigator with the New Jersey Attorney General’s office, as well as a former IRS Special Agent. The CFO was not identified by name. Beverly Carden made a similar representation in a letter to the office of a U.S. Congressman in which she attempted to explain difficulties that AccuPay was having with the IRS. Although the defendants did hire a CPA who was a former IRS revenue agent and former investigative auditor for the New Jersey Attorney General’s Office, who had attended but not graduated from an Ivy League institution, that individual was hired to prepare the defendants’ personal tax returns and AccuPay’s corporate tax returns – not to audit any payments or filings made on behalf of AccuPay’s clients.
Finally, the indictment alleges that the defendants filed a false individual tax return for 2011 in which they substantially understated their income, that Kevin Carden filed a false individual tax return for 2012 in which he substantially understated his income, and Beverly Carden failed to file a tax return for 2012.
The indictment seeks forfeiture of at least $2.5 million.
The defendants face a maximum sentence of 20 years in prison for conspiracy to commit mail and wire fraud; 20 years in prison on each of three counts of mail fraud and five counts of wire fraud; 10 years in prison for conspiracy to commit money laundering and on each of three counts of money laundering; three years in prison on each of two counts for filing a false tax return and one year for failing to file a tax return. The defendants are expected to have their initial appearances in federal court in Florida today and tomorrow.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the IRS - Criminal Investigation and FBI for their work in the investigation. Mr. Rosenstein praised the Bel Air Police Department for their assistance in the investigation, and thanked Assistant U.S. Attorney Evan T. Shea, who is prosecuting the case.
Orlando Man Sentenced to More than 13 Years for Robbing Credit UnionRead the Press Release
Orlando, FL – Chief U.S. District Judge Anne C. Conway today sentenced Joseph Cotto-Diaz (31, Orlando) to 13 years and 5 months in federal prison for aiding and abetting a credit union robbery with assault, and aiding and abetting the use and carrying of a firearm during that robbery. As part of his sentence, Cotto-Diaz was also ordered to pay restitution to his victims.
Cotto-Diaz pleaded guilty on October 1, 2014.
According to testimony and court documents, on the morning of January 25, 2012, Cotto-Diaz and three co-conspirators, including Raulier Rivas Lopez (29, Orlando), robbed the American Eagle Credit Union located at 7007 SeaWorld Drive, in Orlando. Cotto-Diaz, Lopez, and another co-conspirator, all wearing masks, entered the credit union and demanded money from the employees. Lopez pointed an AK-47-style rifle at the employees as Cotto-Diaz pepper-sprayed them. Approximately $7,000 was taken during the robbery.
After fleeing the credit union in a stolen van, the men drove to a nearby hotel parking lot and abandoned the vehicle. They then ran through a pre-cut hole in a chain-link fence, and met another co-conspirator who was waiting in a getaway car.
Lopez pleaded guilty on June 10, 2014, and was sentenced on September 11, 2014, to 14 years in federal prison.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.
Oakley Man Pleads Guilty to Attempted Sexual Exploitation of a Minor ChildRead the Press Release
Defendant Admits he Attempted to Produce Child Pornography
POCATELLO - Ray Carl Short, 66, of Oakley, Idaho, pleaded guilty today to attempted sexual exploitation of a minor child, U.S. Attorney Wendy J. Olson announced. Olson said that as a part of his plea, Short admitted using a hidden security camera to attempt to capture images of a minor victim engaged in sexually explicit conduct. Short was charged by Information in Pocatello on December 22, 2014.
According to the plea agreement, a special agent with Homeland Security Investigations (HSI), Wilmington, Delaware, utilized a covert account on a peer-to-peer network to download 26 child pornography images and videos from Short in January 2014. In July, law enforcement agents searched Short’s residence pursuant to a federal search warrant and seized a laptop computer, a Brickhouse Security camera, and other related items. A forensic analysis of the laptop and other electronic media revealed approximately 2,934 images and 144 video files of suspected child pornography. The National Center for Missing and Exploited Children identified the victims in 345 of the images, 16 of the video files, and in 64 documented “Series” of child pornography.
In a folder located on Short’s computer hard drive and named for an additional minor victim, law enforcement agents found six video files and nine image files of the victim, several of which depicted the minor engaged in sexually explicit conduct. Additional similar videos and images of the victim were located in sub-folders. A review of the security camera’s memory card revealed recently recorded video files of the victim nude and getting ready for bed, and of the defendant placing the camera in, and retrieving it from, concealed locations of the victim’s bedroom.
On the day of the search warrant execution, Short admitted to having downloaded and received images that would be illegal or constitute child pornography and that there were images of child pornography on his laptop. In court, Short also admitted that he placed the Brickhouse camera in hidden locations in order to use the victim to take part in sexually explicit conduct for the purpose of producing visual depictions of such conduct.
The charge of attempted sexual exploitation of a minor is punishable by 15 to 30 years in prison, a maximum fine of $250,000, and a term of supervised release of five years to life.
Sentencing is set for April 8, 2015, before U.S. Chief District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), with the assistance of the Cassia County Sheriff’s Office and Cassia County Prosecutor’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Northern District of Iowa U.S. Attorney's Office Collects $3,760,255.36 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
Contact: Steve Young
United States Attorney Kevin W. Techau announced today that the Northern District of Iowa collected $3,760,255.36 in criminal and civil actions in the fiscal year ending September 30, 2014 (FY 2014). Of this amount, $1,611,824.88 was collected in criminal actions and $2,148,430.48 was collected in civil actions.
Attorney General Eric Holder announced on November 19, 2014 that the Justice Department collected $24.7 billion in civil and criminal actions in FY 2014.
The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
United States Attorney for the Northern District of Iowa, Kevin W. Techau reinforces the importance of these actions indicating, “These collections are a vital part of our mission to vindicate crime and hold accountable those who wrongfully profit at the expense of the United States. This office is dedicated to recovering funds for the federal treasury and for victims of federal crime.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office in the Northern District of Iowa, working with partner agencies and divisions, collected $541,517.00 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.