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Monday 27 October 2014
Fairmont Man Sentenced to 41 Months in Prison for Cocaine DistributionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia man was sentenced to 41 months in prison for distributing crack cocaine, United States Attorney William J. Ihlenfeld, II, announced today.
Desean Aaron, 24, pled guilty in April 2014 to one count of “Aiding and Abetting Distribution of Cocaine Base” after an investigation by the Three Rivers Drug Task Force. Aaron, who is currently incarcerated at the North Central Regional Jail in Greenwood, West Virginia, will be given credit for time served since February 2014.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Ex-San Bernardino Police Officer Sentenced to 25 Years in Prison in Civil Rights Case Stemming from Sexual Assaults of ProstitutesRead the Press Release
RIVERSIDE, California – A former officer with the San Bernardino Police Department was sentenced today to 300 months in federal prison for violating the civil rights charges of two women he forced perform sex acts while he was in uniform.
Jose Jesus Perez, 47, of Menifee, received the sentence from United States District Judge Virginia A. Phillips.
Perez was found guilty by a federal jury in May of two felony counts and one misdemeanor count of deprivation of rights under color of law for sexually assaulting two victims in 2011. The jury determined that both felony offenses involved aggravated sexual abuse, and that one attack involved a kidnapping and bodily injury.
The evidence presented during a week-long trial showed that Perez groped a woman and coerced her to perform oral sex on him by using force against her on April 25, 2011.
The jury also found that Perez had unlawful sexual intercourse with another woman on two occasions in August 2011.
The testimony at trial indicated that the two victims, who worked as prostitutes in the City of San Bernardino, engaged in the sex acts demanded by Perez out of fear of arrest because he was a police officer. One victim testified that he forced her to perform oral sex on him in his patrol car, and the other victim testified that he forced her to have intercourse with him next to his patrol car in a vacant lot and again in motel rooms.
A third woman testified that Perez had aggressively solicited sex from her while he was in uniform when he found her stranded in San Bernardino. The three women each testified that they feared repercussions if they did not comply with Perez’s demands.
Perez “has a long and escalating history of inappropriate sexual behavior towards women,” prosecutors wrote in a sentencing brief that noted a lengthy history of misconduct toward women. “Although defendant is no longer a police officer and is no longer able to abuse a position of public authority to his own criminal ends, he remains the same person — someone who lacks basic respect for the humanity and autonomy of women. Unfortunately, sexual predators in this county do not lack for means of carrying out their crimes, and a badge is unnecessary for their purposes. Defendant poses a greater danger than most sexual predators; although he lacks a badge, he retains his police tactical training and knowledge of police investigative methods. Defendant remains a threat to the public regardless of his employment.”
Perez became a police officer in 1997, when he was hired by the Los Angeles Police Department. Perez worked for the LAPD until 2008, when he went to work for the San Bernardino Police Department. Perez was released from employment by SBPD in December 2012. Perez has been in custody since he was arrested in September 2013 in Texas.
The investigation into Perez was conducted by the San Bernardino Police Department and the Federal Bureau of Investigation.
Release No. 14-140
Detroit Man Sentenced to More Than Three Years for Role in Huntington Heroin ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today for his participation in a conspiracy to distribute heroin in Huntington, announced U.S. Attorney Booth Goodwin. Jakaiser Wesley Jackson, 21, who previously pleaded guilty in July of 2014 to conspiring to distribute 100 grams or more of heroin, was sentenced to three years and one month in federal prison. United States Chief District Judge Robert C. Chambers imposed today’s sentence.
From January 2014 to April 2, 2014, Jackson conspired to distribute heroin with others, including Christopher Lamarr-Shawn Harris. Harris recruited Jackson and other co-conspirators to distribute heroin, mostly in the West Huntington area, and frequently arranged for the transportation of heroin from Detroit, Michigan, to Huntington. Harris and Jackson used multiple locations to store, prepare and distribute heroin, including the Red Roof Inn Hotel on Route 60 in Huntington and multiple residences in West Huntington. Harris and Jackson also recruited local residents in West Huntington to assist in heroin distributions.
Harris was arrested on December 31, 2013, when officers with the Huntington Police Department’s Special Investigations Unit executed a search warrant at an apartment at 1416 Jefferson Avenue in West Huntington. Officers seized more than 400 grams of heroin and $12,349 in cash during the search. Officers also arrested Harris, Denzell Lamar Bunkley, and Steven Edward Lewis, who were inside the apartment.
Harris was arrested again on February 20, 2014, in Ohio by the Ohio State Highway Patrol while traveling from Huntington to Detroit. During his arrest, officers seized another $24,930 from Harris.
Harris was arrested for a third time on April 2, 2014, after officers received information that he was selling heroin from the Red Roof Inn in Huntington. Officers executed a search warrant for two rooms at the hotel and seized approximately 192 grams of heroin and $3,000 in cash. Harris and Jackson had arranged to bring the heroin from Detroit to Huntington just days prior to the search. Jackson was also involved, along with Harris, in transporting heroin from Detroit on other occasions during the conspiracy.Jackson was the fifth defendant to be sentenced in connection with this heroin conspiracy. Brandon S. Keaton was sentenced to 15 months’ imprisonment in July 2014. Harris was sentenced to 147 months’ imprisonment and Bunkley was sentenced to 37 months’ imprisonment, both on October 6, 2014. Lewis was sentenced to 60 months’ imprisonment on October 13, 2014.
The Huntington Police Department Special Investigations Unit, the West Virginia State Police, the United States Drug Enforcement Administration, and the United States Marshals Service all participated in the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiates and heroin in communities across the Southern District.
Detroit Man Sentenced for Clean Air Act CrimesRead the Press Release
A Detroit man was sentenced to 27 months in federal prison on October 24, 2014, for criminal violations of the Clean Air Act, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Randall Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency’s criminal enforcement program in Michigan.
U.S. District Judge Robert H. Cleland imposed sentence on Terry Williams, 49, following Williams’ guilty plea to violating the Clean Air Act in connection with the dismantling and scrapping of the former AMC headquarters on Plymouth Road in Detroit. The work disturbed asbestos-containing materials and released ozone depleting substances.
In 2012, Williams hired crews to remove salvageable metal from the facility, which included the dismantling of air conditioning units charged with R-22 refrigerant, an ozone-depleting substance. Williams’ crews dismantled 50 to 70 of these air conditioning units, including many large rooftop units, causing releases of R-22 refrigerant into the environment.
Williams also arranged for other fixtures on the property to be scrapped, ordering crews to cut and remove pipes he knew to be insulated with regulated asbestos- containing insulation. These insulated pipes were removed without following the work practice requirements under the federal asbestos regulations, including failing to properly wet the asbestos-containing materials to prevent asbestos fibers from becoming airborne and failing to secure the materials for proper disposal.
“Exposure to asbestos can lead to serious diseases, and the defendant’s unsafe asbestos removal practices put the health of his workers and the public at risk,” said Ashe. “This defendant also chose to ignore the hazards of releasing ozone depleting substances, potentially causing harm to both human health and the
environment. This sentence demonstrates that those who knowingly engage in such conduct will be prosecuted to the fullest extent of the law."“Individuals who disregard environmental laws create real harm by polluting the air we all breathe,” McQuade said. “Their conduct not only risks the health of people living near the facility, but jeopardizes air quality in Michigan for future generations. We hope that prosecutions like this one will deter others from engaging in similar violations.”
The case was prosecuted by the U.S. Attorney’s Office in the Eastern District of Michigan by Assistant U.S. Attorney Jennifer Gorland and Special Assistant United States Attorney David Mucha. The case was investigated by agents of the Environmental Protection Agency’s Criminal Investigation Division.Court of Appeals Affirm Convictions in Case Involving Watermark FinancialRead the Press Release
BUFFALO, N.Y. — The U.S. Attorney’s Office announced today that the United States Court of Appeals for the Second Circuit has affirmed the convictions of Ian Campbell Gent and James F. Lagona. The defendants were convicted of conspiracy and mail fraud by a federal jury in February 2011. Lagona was sentenced to 11 years in prison; Gent was sentenced to eight years. Gent and Lagona appealed their convictions and sentences claiming in part that there was insufficient evidence that they had intent to defraud and knowledge of the scheme.
On appeal the government was represented by Assistant U.S. Attorney Joseph J. Karaszewski. The trial was handled by Assistant U.S. Attorney Gretchen L. Wylegala.
Gent and Lagona assisted in an investment fraud scheme in connection with financial service firms M-One Financial and Watermark Financial Services Group. The firms were owned by Guy W. Gane who was convicted in December 2010 and sentenced to 13 years in prison. The firms operated out of 2425 Sweet Home Road in Amherst, NY until May 2008 when federal agents executed a search warrant and the SEC filed a civil action in federal court. The scheme involved promising high returns to investors on “debenture” investments or “promissory notes.”
The Court found that Gent and Lagona had intent to defraud and knowledge of Watermark’s illegal scheme. Specifically, Lagona actively prepared new debentures even after becoming aware that payments to investors of previously issued debentures were due and could not be paid, as promised, with profit; attended at least one sales meeting in which he participated in procuring an investment based on false representations; signed letters assuring investors that their non-existent investments were safe; and did these things at times when he was aware that no investments and no income were being generated.
The Court further stated that when he was hired, Gent knew that the company was “bleeding money” and was paying new investors back with prior investor money. While working for Gane, Gent encouraged the sale of debentures or promissory notes to pay off earlier investors. Lagona falsely assured investors that their investments were safe. Losses suffered by the investors totaled over $6,000,000.
The Court also affirmed Lagona’s sentence but sent Gent’s sentence back for the U.S. District Court in Buffalo to make additional findings regarding a sentencing guideline issue.Convicted Sex Offender Sentenced to Federal Prison for Violating the Sex Offender Registration Notification ActRead the Press Release
PROVIDENCE, R.I. – David Torres, 43, of Fall River, Mass., was sentenced on Friday to 27 months in federal prison for failing to register as a sex offender, announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Torres to serve 8 years supervised release upon completion of his prison term. Torres pleaded guilty on June 9, 2014, to one count of failure to register under the Sex Offender Registration and Notification Act (SORNA).
According to information presented to the court, in August 2013, as required by SORNA, Torres registered his residential address in Central Falls with the Central Falls Police Department. However, an investigation by the U.S. Marshals Service revealed that Torres was traveling to his place of employment in Westport, Mass., which he failed to disclose as required by SORNA.
According to court records, Torres was convicted in Bristol County, Mass., Superior Court in March 1992 of indecent assault and battery of a child over the age of 14. He was sentenced to three to five years imprisonment. Torres is also awaiting sentencing on an unrelated matter in Superior Court in Newport, Rhode Island.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
The Central Falls and Fall River Police Departments assisted the U.S. Marshals Service in the investigation of this matter.###
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]Columbus Man Ordered to Pay Nearly $450,000 for Tax ViolationsRead the Press Release
A Columbus man was ordered to pay nearly $450,000 in restitution and fines related to a tax conviction, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
David S. Owens aka D. Scott Owens, age 62, was ordered to pay $394,542 in restitution and fined $50,000. He was sentenced to six months of home confinement and three years of supervised released.
Owens previously pleaded guilty to one count of failure to account for an pay over employment tax.
"Business owners have a significant responsibility to collect and turn over all IRS withholding taxes,” Enstrom said. “Those who fail to do so to gain a competitive advantage that will not be tolerated and will be prosecuted to the fullest extent of the law.”
Between 2008 and 2009, Owens, through his Canfield, Ohio-based company, Advetech, Inc., made payroll tax withholdings from his employees’ paychecks, but failed to pay over those withholdings to the IRS in the approximate amount of $570,000, according to court documents.
Rather, during this period, Owens transferred hundreds of thousands of Advetech, Inc. dollars to at least two other Canfield companies owned and operated by Owens, including Brixton Development Corporation and Preferred Communities, Inc., from where he took hundreds of thousands of dollars in income for himself, according to the information.
The information was filed by Assistant U.S. Attorney Christos N. Georgalis after an investigation by agents of the the Internal Revenue Service and the U.S. Department of Labor, Employee Benefits Security Administration.
Clarkson Construction Employee Pleads Guilty to $300,000 Mail Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former director of information technology for Clarkson Construction Company pleaded guilty in federal court today to a mail fraud scheme in which he embezzled nearly $300,000 from the company.
Rodney J. Tatum, 42, of Kansas City, Mo., pleaded guilty before U.S. Magistrate Judge Robert E. Larsen to one count of mail fraud.
Clarkson Construction Company is one of the Midwest’s largest construction companies. Clarkson specializes in large-scale construction projects such as highways, interstates, bridges, and sport facilities. Clarkson employs approximately 130 full-time employees and approximately 650 hourly employees. Clarkson’s 2013 revenue was approximately $250 million.
Tatum was employed by Clarkson from 1991 until a federal criminal complaint was filed on Aug. 12, 2014; he was Clarkson’s director of information technology since 2003. In this role, he oversaw all of Clarkson’s IT activities at all of Clarkson’s business entities.
By pleading guilty today, Tatum admitted that he ordered at least $306,540 worth of expensive computer and communication equipment (including solid state hard drives, other computer equipment, and 23 iPhones) between Oct. 22, 2013, and July 31, 2014. Tatum was ordering with company funds and then reselling this equipment for personal profit without the company’s authorization.
In addition to the scheme to defraud Clarkson Construction, Tatum also defrauded Stedman Motor Sports in Moulton, Ala., out of $6,567 worth of work, including motorcycle customization. The total loss caused by Tatum is at least $313,107.
Tatum admitted that he resold the equipment for personal profit. Bank records indicate that, during the time the computer equipment was being purchased, Tatum’s bank account was credited approximately 57 times in the amount of approximately $269,706 from PayPal. Tatum’s personal Facebook page reflected apparently large spending, including on customized motorcycles, a boat, and a large motor home.
Tatum admitted that he ordered 545 expensive solid state hard drives totaling $249,008 as well as 58 other computer-based items with a value of $14,768. The total cost of the purchases, including sales tax, shipping and handling, was $284,948.
Tatum was also responsible for purchasing Clarkson’s cellular telephones through Verizon. Tatum used Clarkson’s corporate Verizon account to purchase 23 iPhone 5 Golds and two iPad Airs at a total value of $11,317.
Clarkson discovered numerous anomalies while reviewing Tatum’s purchasing card statements and expense reports, including falsified PayPal invoices and unexplained charges from Midwestelec. These additional charges have not yet been finalized as loss and incorporated into the loss figures.
Under federal statutes, Tatum is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI.
Clarksburg Man Sentenced for Unlawful Possession of FirearmRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia man with a prior felony drug conviction was sentenced in federal court for unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced today.
During a June 2013 traffic stop by the Morgantown Police Department, Petrus Hawkins, 35, was discovered in possession of a .45 caliber pistol. He pled guilty in June 2014 to one count of “Felon in Possession of Firearm” and was sentenced to 46 months in prison.
Hawkins was convicted in March 2009 in the U.S. District Court for the Northern District of West Virginia of the felony offense of attempting to possess with intent to distribute marijuana near the Gilmer County High School Football Field in Glenville, West Virginia.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives led the investigation.
U.S. District Judge Irene M. Keeley presided.
Carbon County Man Pleads Guilty to Producing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 47-year-old Kidder Township man pleaded guilty today before Senior U.S. District Court Judge Edwin M. Kosik to producing child pornography.
According to United States Attorney Peter Smith, the defendant, Todd Kowar, admitted to persuading and inducing a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. Kowar committed the crime between 2008 and December 2012.
The case against Kowar resulted from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Kidder Township Police. Kowar was indicted by a federal grand jury in July 2014.
Judge Kosik ordered a pre-sentence report to be completed. Sentencing will be scheduled at a later date. Kowar is detained in prison pending sentencing.
Kowar faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison.
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."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Business Owner Pleads Guilty to Wire Fraud Conspiracy to Fraudulently Obtain More Than $2.8 Million in Government Contracts Under the SBA 8(a) ProgramRead the Press Release
Baltimore, Maryland - Wesley Burnett, age 54, of Hermosa Beach, California, pleaded guilty on October 24, 2014, to conspiracy to commit wire fraud in connection with a scheme to fraudulently obtain more than $2.8 million in federal government contracts through the use of the Small Business Administration’s 8(a) program, designed to assist disadvantaged businesses.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations; and Mary L. Kendall, Deputy Inspector General, Department of the Interior.
According to his plea agreement, Wesley Burnett owned and operated Confederate Group LLC and Total Barrier Works (TBW). These companies were in the business of maintaining and installing anti-terrorist systems and vehicle control equipment such as security barriers, bollards, gates, uninterrupted power systems (UPS) and other perimeter security anti-terrorist equipment.
Burnett admitted that at various times from 2007 until 2014, he falsely represented to the U.S. government that Confederate Group LLC was a “Hispanic-American owned business,” a “minority owned business,” a “service disabled veteran owned business,” and a “small disadvantaged business,” in order to win federal contracts at military bases and federal buildings that were reserved for firms in those categories. In fact, Burnett is not a member of any racial or ethnic minority, is not a disabled veteran and is not a member of a socially disadvantaged group, as those terms are defined by the Small Business Administration, and therefore his company was not qualified to receive contracts set aside for those categories. As a result of Burnett fraudulently claiming minority and/or disabled veteran status, from 2008 through 2014, Confederate Group LLC was awarded approximately $534,315, in contracts reserved for minorities and service disabled veterans.
In order to bid on the set-aside contracts, Burnett recruited individual who were members of racial or ethnic minorities, service disabled veterans, or members of socially disadvantaged groups, and offered them a percentage of the total value of any contract he won using their companies’ name. As part of the scheme, Burnett, using the name of the minority owned company bid on federal government contracts set aside for companies owned by minorities, service disabled veterans, or members of socially disadvantaged groups. Burnett and TBW did all of the work covered by the contract, then paid the owner of the company in whose name the contract had been awarded a fixed percentage of the gross value of the contract, usually between four and five percent. To further this “pass thru” arrangement, Burnett falsely represented that TBW was a trade name for the minority owned company in whose name the contract had been awarded, when in fact TBW was a separate and distinct company.
For example, Yogesh K. Patel was the owner of United Native Technologies, Inc. (“UNTI”), which, according to its articles of incorporation, was formed to “perform information technology services to federal, state and local government, as well as commercial.” In 2005, Patel applied for and was granted certification as a minority or socially disadvantaged owned business under the SBA’s 8(a) program. In addition to a broad scope of assistance from SBA, participants in the 8(a) program can receive sole source government contracts that are reserved for minority or socially disadvantaged owned companies.
Burnett met Patel at a business conference and the two agreed to use UNTI to bid on 8(a) set aside contracts at federal government installations, including military bases and federal buildings, with Burnett, TBW and individuals at Burnett’s direction actually performing the work necessary to fulfill these contracts. Burnett also agreed to pay Patel approximately 4.5% of the total value of any contract awarded to UNTI. As a result, between January 2010 and November 2013, UNTI was fraudulently awarded more than $1.8 million in 8(a) set-aside U.S. government contracts, while the work on the contracts was actually performed by Burnett’s company and employees.
Burnett admitted that he had similar arrangements with the owner of an 8(a) firm that did electrical and other work for government and commercial clients, and with the owner of a service-disabled veteran owned small business. Burnett also fraudulently obtained the personal identifying information of a service-disabled veteran, which he then used when bidding on federal government contracts.
Burnett faces a maximum penalty of 20 years in prison for the wire fraud conspiracy. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 2, 2015, at 10:00 a.m.
Yogesh K. Patel, age 47, of Gaithersburg, Maryland, previously pleaded guilty to his role in the scheme and is scheduled to be sentenced on January 12, 2015, at 12:00 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General, U.S. Air Force Office of Special Investigations and the Department of the Interior, Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Sean R. Delaney, who are prosecuting the case.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr., announced today that Jerome C. Crosby, 58 of Buffalo, NY, who was convicted conspiracy to possess with intent to distribute and distribute cocaine, was sentenced to 77 months in prison by U.S. District Court Judge Richard J. Arcara. The defendant will also forfeit $58, 328 in United States currency, proceeds of the narcotics trafficking.
Assistant U.S. Attorney Mary Clare Kane, who handled the case, stated that between January 2008 and July 29, 2008, the defendant conspired with others to supply kilogram quantities of cocaine that he obtained in New York City to Wallace Peace and others. The cocaine was then distributed in the Central Park area of Buffalo.
Crosby was one of 31 defendants arrested and convicted in this case. He is the 29th defendant to be sentenced.
The plea is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, New York Field Division.Berkeley County Couple Charged with Tax EvasionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – A Falling Waters, West Virginia couple was charged with failing to pay nearly $120,000.00 in federal income taxes, United States Attorney William J. Ihlenfeld, II, announced today.
In a ten-count information filed today, Frank J. Picone, 48, and Toni A. Picone, 43, were each charged with five counts of “Failure to File a Personal Income Tax Return.” An Internal Revenue Service, Criminal Investigation inquiry revealed that the couple failed to file personal income tax returns for tax years 2008 through 2012.
The defendants, who own Rocky’s New York Pizza in Hagerstown, Maryland, each face up to one year in prison and a fine of up to $250,000.00 on each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Robert McWilliams, Jr. is prosecuting the case on behalf of the government.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Armed Career Criminal Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Paul Anthony Turrieta, 36, of Albuquerque, N.M., pleaded guilty this morning to being a felon in possession of a firearm and ammunition. Turrieta will be sentenced to 15 years in federal prison due to his status as an armed career criminal.
U.S. Attorney Damon P. Martinez said that Turrieta was being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“Keeping guns out of the hands of trigger pullers is our top priority,” said ATF Special Agent in Charge Thomas G. Atteberry. “I want to commend the enforcement efforts of the Albuquerque Police Department and the United States Attorney’s Office for their diligence.”
Turrieta was arrested in Feb. 2014, on an indictment charging him with unlawfully possessing a firearm and ammunition on Oct. 24, 2013, in Bernalillo County, N.M. According to court filings, Turrieta was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including three residential burglaries.
During today’s proceedings, Turrieta admitted possessing a revolver and ammunition which were discovered in the vehicle he was driving when an officer pulled him over on a traffic stop on Oct. 24, 2013. Turrieta acknowledged that he was prohibited from possessing the firearm and ammunition because he was a convicted felon.
Turrieta has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Presiliano A. Torrez is prosecuting the case.
- Angleton Man Hammered with 35-Year Sentence for Trafficking Methtraw Purchasing and Other Charges Sends Dallas LPR to Federal Prison
Anchorage Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court in Anchorage for the crimes of drug trafficking conspiracy and possession of a controlled substance with intent to distribute.
David Alan Gonzales, 55, originally from Santa Ana, California, was sentenced by United States District Court Judge Sharon L. Gleason, to 120 months’ imprisonment.
According to Special Assistant U.S. Attorney Erin Bradley, Gonzales conspired to distribute, and possess with intent to distribute, methamphetamine. This case arose when the United States Postal Inspection Service identified a suspicious package at their processing center on March 26, 2013. The package, which contained 52 grams of actual methamphetamine, had been sent to Anchorage from Anaheim, California. Gonzales and his co-defendant, Albert Diaz Gumataotao, accepted delivery of the package on March 28, 2013. Though Gonzales was residing in Anchorage at the time of this offense, he has significant ties to the State of California, where he has lived most of his life. Gonzales was convicted by a federal jury in July of this year. Gumataotao pled guilty on November 6, 2013, to one count of drug trafficking conspiracy and was also sentenced to 120 months’ imprisonment.
In imposing the sentence, Judge Gleason noted a need to promote respect for the law, as well as a need to deter the defendant and others from committing similar crimes. Judge Gleason also focused on protecting the public and avoiding disparity in sentences.
Ms. Loeffler commends the United States Postal Inspection Service and the Anchorage Police Department for the investigation leading to the successful prosecution of Gonzales and Gumataotao. Special Assistant U.S. Attorney Bradley is a prosecutor in the U.S. Attorney’s Office who is funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
- Alamo Woman Heads to Prison for Multiple Firearms Convictions
Accokeek Fraudster Sentenced to over 7 Years in Prison for using Stolen Bank Account Information while in Prison to Buy Cars and Other ItemsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Lamonte X. Smith, age 30, of Accokeek, Maryland, today to 92 months in prison followed by six years of supervised release for conspiring to commit wire fraud and aggravated identity theft arising from a scheme in which, while he was incarcerated, he obtained access device account information of others from a bank to purchase cars, services, clothing and other items. Judge Grimm also entered an order that Smith forfeit and pay restitution of $115,207.09The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office.
According to his plea agreement, Smith was incarcerated at the Maryland Reception Diagnostic and Classification Center (MDCC) in Baltimore from at least April to August 2011. Smith instructed a co-conspirator to buy “SIM” cards, which are used in cell phones to assign the device a telephone number, and deliver the SIM cards to Smith in prison. Smith used the SIM cards to activate a phone and call Bank of America, clothing vendors and car dealerships. Smith used one of the SIM cards to call Bank of America’s customer service department on several occasions, posed as an authorized user of business access device account holders, and fraudulently obtained access to bank accounts of individuals and small business owners without their knowledge.
Upon accessing the accounts, Smith caused credit limits to be raised, added additional authorized users and caused additional access devices to be mailed to others. From prison, Smith used the fraudulently obtained account information to buy cars, clothes and car transportation from prison. His conspirators directed the shipment of cars, clothing and other items totaling at least $115,207.09 to Smith’s home, or to a storage unit in Waldorf, Maryland.
On August 17, 2011, federal law enforcement agents searched two homes linked to Smith’s illegal conduct. After learning of the searches, Smith called an individual and offered to pay the individual to remove clothes, car accessories and other items from the storage unit in Waldorf. Law enforcement arrived at the storage unit before it could be emptied. The individual made consensually monitored phone calls with Smith from the storage unit in which Smith confirmed his plan to pay the individual to remove the items.
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 Secret Service for its work in the investigation and thanked Assistant U.S. Attorneys Thomas P. Windom and Arun G. Rao, who prosecuted the case.
Sunday 26 October 2014
Three Arrested in California as Part of Drug Trafficking and Money Laundering InvestigationRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Hugo Adalberto Adrian Ramirez (42, Ontario, California), Edgar Hurtado-Ramirez (45, Ontario, California), and Luis Fernando Mancillas Medina (49, Los Angeles, California) with conspiracy to distribute five kilograms or more of cocaine and conspiracy to commit money laundering. Each faces a mandatory minimum penalty of 10 years’ imprisonment, up to life, on the drug charge and a maximum of 20 years in federal prison on the money laundering charge. A related indictment charging Maria Leticia-Hernandez (23, Ontario, California) with conspiracy to commit money laundering was also unsealed today, and she faces up to 20 years in federal prison.
Ramirez, Medina, and Leticia-Hernandez were arrested earlier today, in the Los Angeles area, in conjunction with the arrests of 11 other co-conspirators throughout California in a related case. Hurtado-Ramirez is a fugitive. The San Diego-based Organized Crime Drug Enforcement Task Force (OCDETF) investigation was led by the Bureau of Land Management and is being prosecuted by the United States Attorney’s Office for the Southern District of California.
Today’s arrests are the latest in an investigation that has to date netted 23 convictions in the Middle District of Florida (MDFL) for drug trafficking, money laundering, and firearm offenses. According to court documents, the investigation targeted a nationwide drug trafficking and money laundering organization based in California. The organization shipped cocaine, methamphetamine, and marijuana from California to locations throughout the United States, including the MDFL. The drugs were shipped via Federal Express, United Parcel Service, and the United States Postal Service. They were also transported in automobiles that had been loaded on car haulers.
Co-conspirators retrieved packages of cocaine at various times in the MDFL, distributed the narcotics to lower level drug distributors in Tampa, St. Petersburg, and elsewhere, and then arranged for drug proceeds to be returned to California via money couriers, wire transfers, and bank deposits. Co-conspirators used drug proceeds that had been deposited into various bank accounts to purchase items such as airline tickets, rental cars, and hotel rooms for organization members.
“This case is the result of years of investigative work, spanning state and international borders,” said Susan L. McCormick, special agent in charge of HSI Tampa. “Dismantling a drug trafficking organization of this size and reach is significant to the safety and security of our nation.”
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from other federal, state, and local agencies as part of an OCDETF investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. It will be prosecuted by Assistant United States Attorney Christopher F. Murray.
Indiana Woman Sentenced to Federal Prison for $3.5 Million FraudRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Linda Deavers (61, Indiana) to six years and six months in federal prison for wire fraud and money laundering. The Court also ordered Deavers to serve a three-year term of supervised release, and to pay more than $3.5 million in restitution. A federal jury found her guilty on July 11, 2014.
According to evidence presented at trial, Deavers devised an investment fraud scheme that used an entity by the name of Angel Annie Humanitarian Trust, LLC. As part of her pitch to investors, Deavers represented that the Trust was a Section 501(c)(3) charitable organization and that she had connections to trading programs in Europe. She said that the investments would generate large rates of return, that she had been successful in investing in such trading programs previously, and that any money invested with her and the Trust would be invested in such trading programs overseas. None of those representations were true. Deavers collected more than $5.2 million from Florida investors. After returning approximately $1.8 million to investors, she used most of the remaining $3.4 million to fund her lavish lifestyle in Indiana and Europe, and to pay various expenses for herself and her family, including a $1 million deposit on a mansion. To lull her investors into a false sense of security, Deavers used e-mail and Skype to provide her investors with a series of false excuses as to why she had not been able to successfully invest their money. Even after spending the last of the funds from her victims, Deavers continued to falsely claim, for several years, that she was working on investments for them.
This type of scheme is sometimes referred to as a prime bank investment fraud scheme. For more information on this type of scheme, please visit the website for the United States Department of the Treasury, Office of Inspector General.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Saturday 25 October 2014
Attorney General Holder Announces Federal Government to Recognize Same-Sex Married Couples in Six Additional StatesRead the Press Release
In the latest development following the Supreme Court’s decision earlier this month to decline to hear any pending cases regarding same-sex marriage, Attorney General Eric Holder announced Saturday that the federal government will now recognize same-sex married couples in six new states: Alaska, Arizona, Idaho, North Carolina, West Virginia, and Wyoming.
Last week, the Attorney General made a similar announcement with respect to seven other states: Colorado, Indiana, Nevada, Oklahoma, Utah, Virginia and Wisconsin. Saturday’s announcement adds to that list and brings the total number of states where same-sex couples are recognized by the federal government to 32, plus the District of Columbia.
The Attorney General’s announcement means couples married in these states will now qualify for a range of federal benefits, including those administered by the Social Security Administration and Department of Veterans Affairs.
“With each new state where same-sex marriages are legally recognized, our nation moves closer to achieving of full equality for all Americans,” the Attorney General said. “We are acting as quickly as possible with agencies throughout the government to ensure that same-sex married couples in these states receive the fullest array of benefits allowable under federal law.”
In addition, the Attorney General also announced that the Department of Justice has determined it can legally recognize marriages performed in Indiana and Wisconsin this past June. These marriages were performed immediately after federal district courts ruled that those states’ bans on same-sex marriage are unconstitutional, but subsequent developments created confusion about the status of those marriages. Based on the Attorney General’s announcement, however, those couples married during that period will now have their unions recognized by the federal government.
Friday 24 October 2014
ZeekRewards President Indicted on Federal Charges for Operating $850 Million Internet Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – The president of ZeekRewards, Paul Burks, has been indicted on federal charges for operating an Internet Ponzi scheme that took in more than $850 million dollars, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The criminal indictment was returned today by a federal grand jury sitting in Charlotte, charging Burks, 67, of Lexington, N.C., with wire and mail fraud conspiracy, wire and mail fraud, and tax fraud conspiracy.
Russell F. Nelson, Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) join U.S. Attorney Tompkins in making today’s announcement.
According to allegations contained in the indictment, from January 2010 through August 2012, Paul Burks was the owner of Rex Venture Group, LLC (RVG), through which he owned and operated Zeekler, a sham Internet-based penny auction company, and its purported advertising division, ZeekRewards (collectively “Zeek”). The indictment alleges that Burks and his conspirators induced victims – including over 1,500 victims in the Charlotte area – to invest in their fraudulent scheme, by falsely representing that Zeekler was generating massive retail profits from its penny auctions, and that the public could share in such profits through investment in ZeekRewards. Indeed, the indictment alleges that Burks and others claimed, at one point, that investors would be guaranteed a 125% return on their investment.
The indictment alleges that Burks and his conspirators represented that victim-investors in ZeekRewards could participate in the Retail Profit Pool (RPP), which supposedly allowed victims collectively to share 50% of Zeek’s daily net profits. The indictment alleges that Burks and his conspirators did not keep books and records needed to calculate such daily figures, and that Burks simply made up the daily “profit” numbers. The indictment further alleges that, contrary to the conspirators’ claims, the true revenue from the scheme did not come from the penny auction’s “massive profits.” Instead, approximately 98% of all incoming funds came from victim-investors, which were then used to make Ponzi-style payments to earlier victim investors.
In addition to promising massive returns on investments, the indictment alleges that the conspirators also used a number of ways to promote Zeek to current and potential investors. For example, according to the indictment, the conspirators hosted weekly conference calls and leadership calls, where participants could call in listen to Burks and others make false representations intended to encourage victim-investors to continue to invest money and to recruit others to invest in Zeek. The indictment further alleges that Burks also organized and attended “Red Carpet Events,” where victim investors came to hear details of the scheme in person. During these events, according to the indictment, Burks and his conspirators made false representations about the massive retail profits generated by Zeek. The conspirators also used electronic and print media, including websites, emails and journals, to make false and misleading statements about the success of Zeekler to recruit victim investors.
The indictment alleges that as the Ponzi scheme grew in size and scope, it began to unravel as the outstanding liability resulting from the bogus 125% return on investment continued to rise beyond control. According to the indictment, by August 2012, the conspirators fraudulently represented to the collective victims that their investments were worth approximately $2.8 billion, but had no accurate books and records to even determine how much cash on hand was available to pay such liability. According to the indictment, by August 17, 2012, Burks and his conspirators had only $320 million (or approximately 11% of $2.8 billion) available to pay out investors. The indictment alleges that over the course of the scheme, Burks diverted approximately $10.1 million to himself.
Burks is also charged with tax fraud conspiracy for failing to file corporate tax returns or to make corporate tax payments for his companies, among other things. In addition, the indictment alleges, for tax year 2011, Burks issued fraudulent IRS Forms 1099s, causing victim-investors to file inaccurate tax returns for phantom income they never actually received.
The court has issued a summons against Burks and he is expected to appear in federal court for his initial appearance in the coming days. The wire and mail fraud conspiracy charge, the mail fraud charge and wire fraud charge each carry a maximum prison term of 20 years and a $250,000 fine. The tax fraud conspiracy charge carries a maximum prison term of five years and a $250,000 fine.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two of Burks’ conspirators, Dawn Wright Olivares, Zeek’s Chief Operating Officer, and her step-son and Zeek’s Senior Technology Officer, Daniel C. Olivares, pleaded guilty in December 2013 to investment fraud conspiracy. Dawn Wright Olivares also pleaded guilty to tax fraud conspiracy. Both defendants await sentencing.
In making today’s announcement, U.S. Attorney Tompkins thanked the U.S. Secret Service and IRS-CI for investigating the case, and the U.S. Securities & Exchange Commission, Division of Enforcement for its assistance with the investigation.
The prosecution is handled by Assistant United States Attorneys Jenny Grus Sugar, Corey Ellis and Mark T. Odulio of the U.S. Attorney’s Office in Charlotte.
Additional information and updated court filings about this and related cases filings can be accessed at the district’s website: www.justice.gov/usao/ncw/ncwvwa.html.
Winchester Man Sentenced for Distributing Fatal HeroinRead the Press Release
HARRISONBURG, VIRGINIA – A Winchester man, who distributed heroin to two local residents who later died of heroin overdoses, was sentenced this week in the United States District Court for the Western District of Virginia in Harrisonburg.
Tyler Christian Clements, 25, of Winchester, Va., previously pled guilty to two counts that stemmed from the distribution of heroin resulting in serious bodily injury and death. The two heroin overdose deaths took place on August 16, 2013 and September 23, 2013. Today in District Court, Clements was sentenced to 264 months of federal incarceration.
“The epidemic of heroin abuse has infected many communities in the Western District of Virginia,” United States Attorney Timothy J. Heaphy said today. “We will continue to react to the scourge of heroin in our communities by apprehending and incarcerating those who bring this poison into our communities. At the same time, we must continue to support education, prevention and treatment programs. Only a comprehensive approach which couples targeted enforcement with aggressive prevention will be effective.”
“This investigation was about the tragic deaths of two people whose lives were ended far too soon. Today, Mr. Clements will begin to pay the price for his actions. He will no longer be able to sell this poison to members of this community,” said Drug Enforcement Administration Special Agent in Charge Karl C. Colder. “The sentencing of Mr. Clements is the result of the hard work and dedication of DEA and its state and local law enforcement counterparts. Our message is simple: DEA will relentlessly pursue those individuals that cause these senseless deaths. We will continue to work closely with our partners in targeting and dismantling heroin trafficking networks operating in Frederick County.”
Clements previously admitted to traveling to Baltimore and purchasing heroin. He returned to the Winchester area and sold the heroin he purchased in Baltimore to individuals who later used the drug provided by Clements and died as a result of heroin overdoses. Local and federal law enforcement worked with their counterparts in Baltimore and identified his source of the heroin.
On August 16, 2013, Clements sold heroin that he had purchased in Baltimore to Derek Lee Spouse. Mr. Spouse used the heroin and died as a result of a heroin overdose. The medical examiner concluded that the cause of Mr. Spouse’s death was “adverse effect of ethanol and heroin.” The medical examiner also determined that, in his opinion, “without the heroin, Mr. Spouse would not have died.”
Less than two months later, on September 24, 2013, Clements again went to Baltimore and purchased heroin. He returned to Winchester where he distributed it to an unnamed victim who used the drugs provided by Clements and later died of a heroin overdose. In this case, after the victim overdosed, Clements removed from the scene and disposed of evidence, including needles and other drug paraphernalia, before emergency personnel and law enforcement had arrived. The medical examiner determined that the victim died as a result of “acute heroin poisoning.”
The investigation of this case was conducted by the Northwest Virginia Regional Drug Task Force, which includes the Virginia State Police, and the Drug Enforcement Administration. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg.
Weymouth Man Sentenced to Six Years for Bank RobberiesRead the Press Release
BOSTON – Charles Knights, 43, of Weymouth, was sentenced today for attempted bank robbery and two counts of bank robbery. U.S. District Judge Nathaniel M. Gorton sentenced Knights to six years in prison and three years of supervised release on each count, all to run concurrently. Knights was on supervised release at the time of his offenses and was previously sentenced to six months’ incarceration on a supervised release violation.
On Feb. 25, 2013, Knights attempted to rob the Citizens Bank at 607 Boylston Street in Boston by means of a demand note. Later that day, while law enforcement units were on scene at Citizens Bank, Knights robbed the Sovereign Bank at 279 Massachusetts Avenue in Boston and stole $415 in cash. On March 4, 2013, Knights robbed the TD Bank at 1840 Massachusetts Avenue in Lexington and obtained $865.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Stacy Dawson Belf of Ortiz’s Major Crimes Unit.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Anthony Colley, 27, of North Liberty, Indiana pled guilty to the felony offenses of interstate wire fraud and conspiracy to commit wire/mail fraud. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration. Sentencing has been set for 1/28/2015. This case is being prosecuted by Assistant United States Attorney Donald J. Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Luis Trevino, 35, of South Bend, Indiana was sentenced to 180 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of knowingly or intentionally possessing with the intent to distribute a mixture or substance containing cocaine. According to documents filed in this case, on February 5, 2014, Trevino possessed cocaine in his home in South Bend, Indiana that he intended to sell.
- Javier Trevino, 33, of South Bend, Indiana was sentenced to 21 months imprisonment with 2 years supervised release after pleading guilty to knowingly or intentionally possessing with the intent to distribute marijuana. According to documents filed in this case, on February 5, 2014, Trevino possessed marijuana in his mother’s home in South Bend, Indiana that he intended to sell.
Both cases were the result of an investigation by the Drug Enforcement Administration and both were prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION
- Rene Patterson, 32, of Merrillville, Indiana was sentenced to 30 months imprisonment with 3 years of supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, in June 2013, Patterson was found to be in possession of a semiautomatic pistol and two extended magazines of ammunition. Patterson had a previous conviction in 2006 for carrying a handgun without a license. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Tom McGrath.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Deantre L. Rogers, 36, of Fort Wayne, Indiana pled guilty to the felony offense of knowingly distributing a controlled substance (28 grams or more of crack cocaine). The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, FBI Safe Streets Task Force and the Fort Wayne Police Department. Sentencing will be set by separate order by the district court. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Walter Hill, Jr., Sentenced to 20 Years in Prison for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez sentenced Walter Hill, Jr., 46, of St. John, VI, on October 23, 2014, to a mandatory minimum sentence of 20 years in prison, 10 years of supervised release, a $300 special monetary assessment, 300 hours of community service, and ordered forfeiture of property constituting the proceeds of the crime, United States Attorney Ronald W. Sharpe announced.
On March 27, 2014, a federal jury convicted Hill of conspiracy to possess with intent to distribute cocaine, possession with intent to distribute cocaine and use of a communication facility, namely, a telephone, to facilitate a drug crime. Hill was arrested as part of the investigation of Roberto Tapia, Director of the Virgin Islands Department of Planning and Natural Resources (DPNR) Division of Environmental Enforcement. On November 7, 2013, he was charged in a 69-count third superseding indictment, along with Tapia, Angelo Hill, Stephen Torres, Eddie Lopez-Lopez, Raymond Brown, Hector Alcenio, Angel L. Negron-Beltran, and Edwin Monsanto.
The case was investigated by the Public Corruption Task Force, which comprises the Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA); Virgin Islands Police Department; U.S. Marshals Service; Internal Revenue Service Criminal Investigation Division (IRS-CI); U.S. Department of Homeland Security, Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); United States Coast Guard; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Office of the Virgin Islands Inspector General. It was prosecuted by Assistant U.S. Attorney Kelly B. Lake.
Virginia Beach Man Indicted in Major Health Care Fraud of Virginia Medical Assistance ProgramRead the Press Release
NORFOLK, Va. – Baffour E. Opoku, owner and operator of Progressive Counseling Services, LLC, a Virginia Beach based counseling business, and nine other current and former employees were indicted on Wednesday by a federal grand jury for their alleged roles in a scheme to defraud the Virginia Medical Assistance Program. Court documents were unsealed today.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office; Clark E. Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; Thomas J. Kelly, Special Agent in Charge, IRS-Criminal Investigation, Washington, D.C. Field Office; and Bill Jones, Special Agent in Charge for the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General – Office of Labor Racketeering and Fraud Investigations, made the announcement after the defendants made their initial appearances in federal court this afternoon.
The nine of the ten defendants were arrested today, and are currently awaiting further proceedings. The defendants are: Baffour E. Opoku, 48, of Virginia Beach, Virginia; Doretha Selby-Diggs, 40, of Portsmouth, Virginia; Lisa Barrett, 49, of Norfolk; Barbara Bing Banks, 34, of Hampton, Virginia; Corey Etheridge, 42, of Chesapeake, Virginia; Jacqueline Harris, 34, of Portsmouth; Verline Harris, 48, of Virginia Beach; Arlette Johnson, 58, of Virginia Beach; Alfreda Stallion, 52, of Virginia Beach; and Johnny Stallion, 34, of Las Vegas, Nevada.
According to the 105 count indictment, the defendants conspired to obtain reimbursement payments from the Virginia Medical Assistance Program by submitting false claims for mental health support services in 2011 and 2012. Opoku owned and operated Progressive Counseling Services, LLC. He hired the other nine defendants to provide mental health support services to Medicaid-eligible clients in the Tidewater area. According to the indictment, Opoku, along with an unindicted co-conspirator, created fraudulent assessments of Progressive clients to obtain authorization to bill Medicaid for mental health support services. Once Progressive obtained this authorization, Opoku submitted false and fraudulent Medicaid reimbursement claims on behalf of mental health support services purportedly provided by the co-defendants. The indictment alleges these reimbursement claims were bogus because most of the counselors were unqualified to serve as mental health professionals, the counseling sessions never occurred, and progress notes used to document the sessions were fabricated.
In addition, Opoku faces charges that he failed to report nearly $450,000 in taxable income to the IRS over two tax years and that Opoku, along with Doretha Selby-Diggs and Corey Etheridge, submitted false documents to U.S. Citizenship and Immigration Services, part of the Department of Homeland Security, with respect to a pending immigration matter.
The indictment further alleges that Lisa Barrett, Barbara Bing, Jacqueline Harris, and Arlette Johnson testified falsely before a federal grand jury that was investigating this matter.
This case was investigated by the FBI’s Norfolk Field Office; the Medicaid Fraud Control Unit of the Virginia Attorney General’s Office; Homeland Security Investigations (HSI); IRS-Criminal Investigation; and the Department of Labor, Office of Labor Racketeering and Fraud Investigations. Assistant U.S. Attorneys Joseph L. Kosky and V. Kathleen Dougherty are prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. All defendants are presumed to be innocent until and unless proven guilty.
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. 2:14-CR-137.
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United States Files Enforcement Action Against South Dakota Laser Medical Device DistributorRead the Press Release
The United States filed a civil complaint for injunctive relief in the U.S. District Court for the District of South Dakota against 2035 Inc. and its president, Dr. Robert L. Lytle, the Department of Justice announced today. Lytle, who does business as 2035 Private Membership Association and QLasers Private Membership Association, is the owner and operator of 2035 Inc.
According to the complaint, the defendants are responsible for designing, manufacturing, marketing and distributing the QLaser System, a collection of approximately 12 devices that are marketed as low level laser devices for home use. The defendants market their devices throughout the country – through seminars, websites, newspaper ads and other means – for treatment of “over 200 different diseases and disorders,” including cancer, cardiac arrest, HIV/AIDS, diseases and disorders of the eye and ear, venereal disease and diabetes. Although two of the devices are cleared for providing temporary relief of pain associated with osteoarthritis of the hand, none of the devices have been cleared by the U.S. Food and Drug Administration (FDA) or otherwise approved to treat any other medical conditions. Failure to obtain FDA clearance or premarket approval before marketing and distributing a device renders the device adulterated and misbranded and violates the Food, Drug, and Cosmetic Act (FDCA).
“The public should be able to trust that medical devices marketed to them to treat certain conditions are shown to be safe and effective,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The Department of Justice will take action to ensure that public health is not put at risk.”
According to the complaint, the defendants distribute labeling with the QLaser devices that touts their use for treatment of the serious conditions listed above, as well as their use on eyes and skin. However, the complaint alleges, applying the laser devices to the eyes and skin can be harmful, and use of the devices to treat serious conditions such as cancer, HIV/AIDS and diabetes, among others, is unsupported by any published clinical studies. The complaint further alleges that the medical claims regarding use of the laser devices to treat these conditions are false and misleading and that the devices are unsafe if used in the manner recommended or suggested in defendants’ labeling.
During multiple inspections of the defendants’ operations over the course of approximately 11 years, the FDA informed the defendants – both verbally and in writing – that they were violating the FDCA. Despite these warnings, the complaint alleges that defendants continue their violations. Most recently, in August and September 2014, FDA investigated the defendants’ business operations, including QLasers PMA, and www.qlaserspma.com, a website owned and operated by Lytle through QLasers PMA. According to the complaint, these investigations revealed that the defendants continue to make claims that cause their QLaser devices to be in violation of the law.
The government requests that the court enjoin the defendants from continuing to market their QLaser devices, or any other device, unless or until such devices receive FDA clearance or approval. The complaint further requests the court order the defendants to cease manufacturing, processing, packaging, labeling, holding or distributing any product that is a device unless and until the defendants have come into compliance with the FDCA.
“After several warnings from the FDA, this distributor was well aware he was in violation of the law by continuing to market laser devices for unapproved uses,” said U.S. Attorney Brendan V. Johnson for the District of South Dakota. “Regardless, he continued to put consumers at risk, leading them to believe the product they were buying from his companies could treat certain serious medical conditions. Consumer confidence is critical, and the Department of Justice will work to protect that confidence and keep the public safe.”
The FDA referred this matter to the Department of Justice. Trial Attorneys Cindy Cho and Ross Goldstein of the Consumer Protection Branch in the Civil Division, together with the U.S. Attorney’s Office for the District of South Dakota, brought this case on behalf of the United States.
U.S. Attorney Gregory K. Davis Speaks to Middle School Students in Hattiesburg During National Bullying Prevention MonthRead the Press Release
Hattiesburg, Miss – U.S. Attorney Gregory K. Davis and Assistant U.S. Attorney Angela Williams spoke to students at N.R. Burger Middle School in Hattiesburg, Mississippi on October 16 and 17 as a part of the school’s recognition of National Bullying Prevention Month. The officials presented the Southern District of Mississippi’s Legal Enrichment and Decision Making (LEAD) Program. They spoke to the 6th and 7th grade students about the importance of obtaining an education and making good choices which will put students on the path to success. They also spoke to students about bullying, gang avoidance, the dangers of illegal drug abuse, and safely using the internet and social media.
U. S. Attorney Davis said, “The reason we are here today is to emphasize the importance of education and the opportunities it provides for students. The decisions made while in school can make a tremendous difference in their lives as well as their peers.”
Davis continued, “One of my primary goals as a prosecutor is to prevent crimes from happening in the first place. Educating students about the social and legal consequences of their decisions is essential to reducing negative behavior and making our communities safe,” U.S. Attorney Davis said.
Throughout the 2014-2015 school year, US Attorney Davis and the Assistant United States Attorneys of the Southern District of Mississippi will be traveling to middle and high schools throughout the Southern District of Mississippi to present the LEAD program. School districts that are interested in having the program presented should contact Sheila Wilbanks with the U.S. Attorney’s Office at 601-965-4480.
U.S. Attorney Brendan Johnson Receives Shared Hope Pathbreaker Award for Anti-Trafficking LeadershipRead the Press Release
ARLINGTON, VA. – Brendan Johnson, U.S. Attorney for the District of South Dakota, has been named a 2014 Pathbreaker Award recipient for his determined leadership in combatting child sex trafficking.
U.S. Attorney Johnson has taken a progressive approach to demand enforcement through broad collaboration and aggressive prosecution of buyers which established broader federal engagement in combating demand for child sex trafficking. At the request of Attorney General Eric Holder, Johnson was one of fifteen U.S. Attorneys selected to serve on the Attorney General’s Advisory Committee from 2012-2013. He has prioritized the prosecution of cases involving violence against Native American women and children and human trafficking. Mr. Johnson has overseen the prosecution of more than 25 human trafficking cases in five years, including three life-sentences and the federal prosecution of numerous men who attempted to purchase sex from trafficking victims. His office pursued the case of United States v. Jungers through the Eighth Circuit Court of Appeals, securing the critical decision that buyers of sex acts with minors are committing crimes of sex trafficking under the federal law, upping the risk of such activity by those who drive the sex trafficking markets.
“Brendan Johnson is a force of determination, initiative and skill that should leave buyers terrified to purchase sex with a minor in South Dakota,” Shared Hope International President and Founder Linda Smith said. “By creating a threshold for buyer accountability, he sets a national precedent that, if applied, will make significant strides in reducing tolerance for purchasing sex with a minor.”
In 2000, the U.S. Department of State engaged Shared Hope International to hold Pathbreaking Strategies Conferences in six countries to energize the global conversation about the issue of trafficking and share innovative approaches to combat the problem. The conferences led to significant change in the global landscape of national responses to trafficking in countries that were behind the global community and enabling an environment that was fostering trafficking with no developed response. During this process, the Pathbreaker Award was established to recognize the pioneering efforts of individuals throughout the world who broke the trend of inaction and initiated proactive responses to prevent trafficking. See all Pathbreaker Award recipients.
The 2014 Pathbreaker Award recipients also include Congressman Frank Wolf (VA-10) and Marian Hatcher, Project Manager for the Sheriff’s Women’s Justice Programs at the Cook County Sheriff’s Office. U.S. Attorney Johnson and Ms. Hatcher will accept the award on November 7 during Shared Hope International’s JuST Conference in Washington, D.C.
MEDIA MATERIALS
For media convenience, a variety of video clips and resources, including survivor comments, are available at this location: vimeo.com/sharedhope/albums. Clips are password protected, please contact Taryn Offenbacher at [email protected] for access.
ABOUT SHARED HOPE INTERNATIONAL: Shared Hope International was established in 1998, by former U.S. Congresswoman Linda Smith, to prevent, restore, and bring justice to women and children in crisis. We provide leadership in awareness, training, prevention strategies, restorative care, research, and policy initiatives. For more information about Shared Hope International, go to www.sharedhope.org.
For more information contact Taryn Offenbacher at (602) 818-3955 or [email protected].
U.S. Attorney Announces Two Lauderdale County Men Charged in Scrapyard Metal ScandalRead the Press Release
Memphis, TN – Nick Wright, age 43 and Jerry Vaden, age 43, both of Gates, Tenn., were indicted last week by a federal grand jury on charges of mail fraud, structuring cash transactions to avoid reporting requirements, false statements to federal agents and obstruction of justice, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee and 25th District Attorney General Mike Dunavant.
The twelve-count indictment alleges that beginning in June 2013 and continuing until February 2014, Wright, owner of Wrights Auto Parts and Metals LLC, located in Gates, Tennessee, subcontracted with Vaden, owner of Vaden Trucking, also of Gates, Tennessee, to supply drivers to remove scrap metals from Apex Tool Group (Apex) in Springdale, Arkansas and deliver it to Wright’s scrapyard. Prior to weighing loads obtained from Apex, Wright would allegedly have a portion of the scrap metal removed from each load and then prepare invoices and checks to be mailed to Apex which falsely represented the true weight of the load removed from their facility. It is further alleged that Wright would then reload the scrap metal he had previously removed onto one of Vaden’s trucks and have it driven to other scrapyards to be sold.
It is also alleged that Wright would deposit the proceeds from the resale of the scrap metal in his business bank account and attempt to avoid the reporting requirements of transactions over $10,000 by structure his deposits as a “less cash transaction.” Wright would receive cash back in amounts just under $10,000. Wright and Vaden both allegedly made false and fraudulent statements to federal agents during the course of the criminal investigation.
Wright and Vaden have been charged with eight counts of mail fraud, one count of structuring cash transactions to avoid reporting requirements, one count of making false statements to federal agents and obstruction of justice If convicted they face up to 45 years in prison and a fine of up to $1 million.
U.S. Attorney Stanton praised the investigative work of the Federal Bureau of Investigation, the Tennessee Highway Patrol and the 25th District Attorney General’s Office.
This case is being prosecuted for the government by Special Assistant United States Attorney Samuel Stringfellow.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Note that there may not always be supplemental materials like the Adobe Acrobat .pdf file below.
U.S. Attorney Announces Former U.S. Postal Service Employee Sentenced to Federal Prison for Stealing Meds from VeteransRead the Press Release
Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee announced today that Patricia F. Baker, 50, of Memphis, TN was sentenced this week by U.S. District Judge Sheryl H. Lipman to serve 18 months in federal prison followed by three years of supervised release, forfeit $4,000 and was ordered to pay restitution of $2,720 to her victims who incurred pain and hospital stays because of her actions. There is no parole in the federal prison system.
According to the Indictment: Patricia Baker was a United States Postal Service mail handler who, over the course of four years, stole thousands of dollars in medication such as hydrocodone and Viagra from Armed Forces veterans throughout the region. Ms. Baker would make small tears in Veterans Administration parcels to determine whether the medications inside would be marketable. She enlisted the assistance of both her son and husband in a conspiracy to distribute the controlled substances, making at least $8,500 in profits while veterans suffered.
Complaints regarding missing parcels were investigated by Postal Service Office of Inspector General (OIG) Special Agents, who caught Baker stealing items from parcels on hidden surveillance cameras. Agents witnessed Ms. Baker taking cell phones and medications from the mail and hiding them in her apron and workspace. Baker admitted to OIG agents that she had stolen a large quantity of pain medication and electronics, such as laptop computers and iPads. A search of Baker's home recovered laptop computers, computer tablets, cellular telephones and accessories, Veterans Administration prescription medications, video games, DVDs, jewelry, coins and cameras.
On March 20, 2014, a Federal Grand Jury sitting in the Western District of Tennessee returned a 21-count indictment with a Notice of Forfeiture against Ms. Baker. Baker plead guilty on July 18, 2014 to one count of destruction of mail, one count of embezzling mail and one count of conspiracy to distribute a controlled substance.
U.S. Attorney Stanton praised the investigative work of the U.S. Postal Service Office of Inspector General.
Special Assistant U.S. Attorney Ron Cummings represented the government.
Two Metro East Women Sentenced for Unemployment FraudRead the Press Release
Follow @SDILNewsTwo metro-east women have been sentenced in federal court for their convictions of theft of public funds (unemployment fraud), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Melonetria McCallum, 38, of O’Fallon, Illinois, was sentenced to 5 years of probation and ordered to pay $14,219.97 in restitution and a $100 Special Assessment. Trudie Lindsey, 57, of East St. Louis, Illinois, was also sentenced to 5 years of probation and ordered to pay $13,751 in restitution and a $100 Special Assessment.
The two women pleaded guilty to Embezzlement of Public Funds on July 11, 2014. Documents filed in US District Court established that in each case the women applied for and received unemployment compensation from the state of Missouri at a time when they were earning income and residing in Illinois. In each case, the women falsely certified that they were eligible to receive unemployment benefits and concealed the fact that they had employment at the time they were also receiving benefits.
The Missouri Department of Employment Security administers Missouri’s unemployment program to provide temporary income replacement for individual workers who lost their jobs through no fault of their own. U.S. Attorney Stephen R. Wigginton said, “These programs are funded through the taxes paid by employers, employees, and additional federal contributions. This money is intended to serve as the fundamental safety net in society, not as a hammock for thieves who double dip.”
The investigations were conducted by agents from the US Department of Labor, Office of the Inspector General. The cases are being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
- Three Houston Men Head to Prison for Robbery of Postal Vehicle
Texan Pleads Guilty to Attempting to Entice a Minor into Producing PornographyRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced that a Texan pleaded guilty Thursday to trying to lure a minor into producing a sex video.
Sach Kevin Vu, 32, of Arlington, Texas, entered a guilty plea Thursday before U.S. District Judge S. Maurice Hicks Jr. for one count of attempting to entice a minor to engage in criminal sexual activity. According to evidence presented at the guilty plea, an undercover officer posing as a 16-year-old girl responded on February 7, 2014 to an online advertisement seeking models for a photo shoot. Vu began communicating with the officer posing as a 16-year-old girl and set up a meeting in Haynesville, La., where he planned to produce a pornographic video. He communicated in detail beforehand about what kinds of sex acts he wanted performed. Vu was arrested on February 20, 2014 in Haynesville, La., after traveling there from Texas. Sex toys and camera equipment were found in his vehicle.
Vu faces 10 years to life in prison, not less than five years of supervised release, and a fine of $250,000. He is also required to register as a sex offender. A sentencing date of February 9, 2015 was set.
The FBI and the Claiborne Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit .
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.Storm Lake Man Convicted of Credit Card FraudRead the Press Release
A man who committed multiple frauds was convicted by a jury October 23, 2014, after a three-day trial in federal court in Sioux City.
Yoirlan Tome Rojas, age, from Storm Lake, Iowa, was convicted of two counts of using a counterfeit access device; one count of possession of fifteen or more counterfeit access devices; one count of money laundering; and two counts of aggravated identity theft. The verdict was returned following about one hour of jury deliberations.
The evidence at trial showed that Rojas manufactured credit cards and utilized those cards to conduct purchases at Walmart and various other places of business in the Storm Lake, Iowa, area. Rojas would use the manufactured credit cards to purchase gift cards to later use to make “legitimate” purchases. At least two of the cards Rojas utilized belonged to individuals who reported unauthorized use of their credit cards.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Rojas remains in custody of the United States Marshal pending sentencing. On all of the charges, Rojas faces a possible maximum sentence of 10 years’ imprisonment, a $500,000 fine, $600 in special assessments, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jamie Bowers and was investigated by the Storm Lake Iowa Police Department and the United States Secret Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4015.
Statesboro Man Sentenced to 15 Years for Requesting and Receiving Child PornographyRead the Press Release
Statesboro, GA: Stuart Powell Johnson, 52, of Statesboro, Georgia, was sentenced earlier this week by United States District Court Chief Judge Lisa Godbey Wood to 15 years in prison, followed by twenty years of supervised release, for soliciting images of child pornography over the Internet. He will be required to register as a sex offender. Johnson pled guilty to the crime on June 16, 2014.
United States Attorney Edward Tarver said, “Using the Internet in an effort to access images depicting child sexual abuse promotes the further victimization of our children and cannot be tolerated. The U. S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who exploit our children. This defendant committed a serious crime for which a lengthy punishment is justified.”
“This is an entirely appropriate sentence for a defendant who trafficked in the sexual exploitation of children,” said Brock D. Nicholson, Special Agent in Charge of Immigration Customs Enforcement Homeland Security Investigations (ICE HSI), in Atlanta. “Most importantly, we were able to identify and save a previously unknown victim who was suffering from abuse in Texas through the outstanding work of our computer forensics analyst in Savannah. In the fight against child pornography, these innocent victims will always come first for HSI.”
Evidence presented during the guilty plea and sentencing hearings revealed that Johnson, who had previously been convicted of a child-pornography-related offense when in the military, used an email account and an international website to solicit images depicting child sexual abuse for his own sexual gratification. At the time Johnson was a registered sex offender, and used other individuals’ computers and wireless connections in an effort to avoid detection. Significantly, the forensic review of a number of the images located in Johnson’s email account led to the identification of a girl in San Antonio who was being sexually exploited there.
This prosecution was the result of a cooperative investigation conducted by HSI in St. Louis, Savannah, and HSI’s Cyber Crimes Center. Law enforcement assistance was also provided by the Bulloch County Sheriff’s Office, and the Florida Department of Law Enforcement. The case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
St. Thomas Man Sentenced to 67 Months IncarcerationRead the Press Release
St. Thomas, USVI- District Court Judge Curtis V. Gomez sentenced Hector Mejia-Patino, 26, of St. Thomas, Virgin Islands, on October 23, 2014, to 67 months of incarceration, five years of supervised release, and a $100 special monetary assessment announced United States Attorney Ronald W. Sharpe and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge Vito Guarino.
According to the plea agreement, from June 2013 thru September 2013, Mejia-Patino participated in several telephone conversations and exchanged text messages with an undercover Task Force Officer (“UC”) assigned to the DEA in order to conduct a transaction involving multiple kilograms of cocaine. During one of those conversations, Mejia-Patino agreed to introduce the UC to his co-conspirator to facilitate the drug transaction because Mejia-Patino was out of the territory at the time. The UC traveled to St. Thomas and met with Mejia-Patino's co-conspirators at the Crown Bay Marina. Before the drug transaction was completed, the co-conspirators were arrested for possessing 11 kilograms of cocaine. On January 10, 2014, Mejia-Patino was arrested for his role in this offense. On April 3, 2014, Mejia-Patino pleaded guilty to one count of conspiracy to distribute five kilograms or more of cocaine.
U.S. Attorney Sharpe commended the efforts of the U.S. Drug Enforcement Administration, which investigated the case. The case was prosecuted by Assistant U.S. Attorney Ishmael A. Meyers, Jr.
Shreveport Man, Texas Man Sentenced for Methamphetamine Distribution ConspiracyRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced that a Shreveport man and a Texas man were sentenced Thursday to 219 months and 168 months in prison, respectively, for their roles in a methamphetamine distribution operation that stretched from Natchitoches, La., to Mexico.
Raymond D. Conley, 39, of Shreveport, was sentenced Thursday to 219 months in prison and Santiago Lopez, 41, of Harlingen, Texas, was sentenced to 168 months in prison by U.S. District Judge Donald E. Walter for conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. They were also sentenced to five years of supervised release. According to evidence presented at the February 6, 2014 guilty pleas, law enforcement authorities became aware that Conley was storing illegal drugs at a girlfriend’s residence in Natchitoches. The property was searched on September 9, 2013, and Conley and Lopez were found there. They also found three large plastic wrapped bundles, one of which field tested positive for methamphetamine, and 13 one-ounce baggies containing methamphetamine. Conley admitted to storing the drugs at the Natchitoches home, and Lopez admitted to transporting the drugs from Mexico to the Natchitoches area for distribution.
“Those who deal in illegal narcotics will be brought to justice,” Finley stated. “We will continue to protect our communities from those who want to pollute them with dangerous drugs. I want to commend the prosecutor and the law enforcement agencies in this case for their hard work and dedication to this case.”
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation code named “Crystal Bend.” The DEA, ATF, Louisiana State Police, and Natchitoches Multi-Jurisdictional Task Force participated in this OCDETF operation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle targeted criminal organizations and seize their assets.Shamokin Man Charged with Production, Distribution and Possession of Child PornographyRead the Press Release
The United States Attorney for the Middle District of Pennsylvania, announced that charges were filed yesterday against Abraham D. Gordon, a resident of Shamokin, Pennsylvania.
According to United States Attorney, Peter Smith, Gordon, age 32, is charged in a three-count Indictment with production, distribution, and possession of child pornography. The offenses are alleged to have occurred between March and June 2014.
The investigation was conducted by the Pennsylvania State Police Computer Crime Task Force and the Federal Bureau of Investigation, Williamsport Office. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statutes is thirty years imprisonment, and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Seven Perry County Residents Charged with Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsSeven Perry County residents were indicted on October 7, 2014, in an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Brant A. Sizemore, 38, Stephanie A. Ellis, 36, Clint D. Williams, 31, Clinton Waters, 37, and Donald K. Brown, a/k/a “D.J.,” 31, all of DuQuoin, Joseph E. Soldan, Sr., 44, of Tamaroa, and Jamey A. Carson, 35, of Pinckneyville, are charged in an indictment with conspiracy to manufacture methamphetamine. The indictment alleges that the offense occurred between 2012 and September 2014, in Perry, Jackson, Randolph, Williamson, and Franklin Counties. Waters and Carson made their initial appearances in federal court in Benton on October 20, 2014. At their October 22, 2014, detention hearings, they were both ordered held without bond pending a December 15, 2014, jury trial. Sizemore, Ellis, and Brown have previously appeared and are being held without bond. Waters and Soldan are set to make their initial appearances in federal court on October 28, 2014.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offense carries a maximum penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Perry County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Riverside, CA Man Sentenced to 51 Months, $2.5 Million Restitution and $3 Million Forfeiture for Money LaunderingRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DAVID LEWIS McDOWELL, age 52, of Riverside, California was sentenced to 51 months imprisonment for Money Laundering, in violation of Title 18, United States Code, Section 1957. McDOWELL was also ordered to pay approximately $2,500,000.00 in restitution and to forfeit $3,000,000.00 in assets.
The charge arose from an investigation by the Internal Revenue Service, Criminal Investigation and Federal Bureau of Investigation. The defendant was indicted in April, 2013 and pled guilty in March, 2014.
The Indictment alleged that on or about June 25, 2008, through November 9, 2009, in the Eastern District of Oklahoma, the defendant did knowingly engage in a monetary transaction through a financial institution, affecting interstate commerce, in a criminally derived property of a value greater than $10,000, that is, by causing money to be transferred from accounts at Ameristate Bank, such proceeds having derived from a specified unlawful activity, that is wire fraud.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Melody Nelson represented the United States.
Rio Arriba County Man Pleads Guilty to Federal Conspiracy and Mail Fraud ChargesRead the Press Release
ALBUQUERQUE – Gerald Archuleta, 43, of Ojo Caliente, N.M., pleaded guilty this morning to conspiracy and mail fraud charges arising out of a scheme to defraud the federal and state unemployment insurance system. His co-defendant, Jasonn Gonzales, 41, an accountant from Velarde, N.M., previously entered a guilty plea to the same charges, as well as an identity theft charge, in Aug. 2014.
Archuleta and Gonzales were charged in a six-count indictment that was filed on March 26, 2014. Count 1 charged the two men with conspiracy to commit mail fraud in furtherance of a scheme to defraud the federal and state Unemployment Insurance System in New Mexico, Texas and Colorado of money by false and fraudulent pretenses. Counts 2 through 5 of the indictment charged the men with mail fraud, and Count 6 charges Gonzales alone with aggravated identity theft.
According to court filings, the federal and state Unemployment Insurance System seeks to lessen the effects of unemployment through payments made to claimants (laid-off workers) on a weekly basis while the claimants seek employment. The unemployment insurance program is administered on behalf of the federal government by state workforce agencies in each state. In entering their guilty pleas, Gonzales and Archuleta admitted that between 2009 and 2012, they schemed to defraud the New Mexico Department of Workforce Solutions, the Texas Workforce Commission and the Colorado Department of Labor and Employment of more than $1,356,000 by making false and fraudulent claims for unemployment benefits in the names of real people.
Gonzales and Archuleta perpetuated their unlawful scheme by fraudulently registering numerous non-existent companies with the three state workforce agencies and filing false quarterly reports for the fictitious companies which identified claimed employees. The two men provided the names, dates of birth and social security numbers of the claimed employees to the state agencies without the knowledge or authorization of the claimed employees, who were real people. Gonzales and Archuleta then made false and fraudulent claims for unemployment benefit claims on behalf of the claimed employees of the fictitious companies. The two men opened post office boxes in New Mexico, Texas and Colorado, which they provided to the three state workforce agencies as mailing addresses for the claimed employees. The state agencies mailed debit cards to the claimed employees at the post office boxes and the defendants used the debit cards to withdraw the fraudulently obtained benefits. During the life of the conspiracy, Gonzales and Archuleta submitted fraudulent claims for unemployment benefits in the aggregate amount of $1,356,461, and defrauded the three state workforce agencies of approximately $801,848, in total.
During today’s hearing, Archuleta entered a guilty plea to Count 1 through 5 of the indictment. Under the terms of his plea agreement, Archuleta will be sentenced to a prison term within the range of 87 to 108 months to be followed by a term of supervised release to be determined by the court. The plea agreement also requires Archuleta, jointly with Gonzales, to pay $734,123.73 in restitution. Archuleta’s sentencing hearing has yet to be scheduled.
Gonzales entered a guilty plea on Aug. 18, 2014, to all six counts of the indictment without the benefit of a plea agreement. In entering his guilty plea, Gonzales also admitted to the forfeiture provisions of the indictment and to the entry of an $801,848 money judgment against him. At sentencing, Gonzales faces a statutory maximum penalty of 20 years in federal prison on the conspiracy charge and each of the five mail fraud charges. He also will be sentenced to a two-year mandatory prison sentence to be served consecutive to any sentence imposed on the conspiracy and mail fraud charges. Gonzales’ sentencing date has yet to be scheduled.
This case was investigated by the Department of Labor Office of Inspector General, Office of Labor Racketeering and Frauds Investigations, and the U.S. Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Tara C. Neda.
Rapid City Man Sentenced for Theft from Indian Health ServicesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Theft or Embezzlement in Connection with Health Care was sentenced on October 16, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Gray, age 59, was sentenced to 2 years of probation, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and restitution in the amount of $6,476.42.
Gray was indicted for Theft or Embezzlement in Connection with Health Care on March 18, 2014, and he pled guilty on June 4, 2014.
The conviction relates to Gray, while employed by an Indian Health Services (IHS) Hospital, taking equipment belonging to IHS and using a General Services Administration gas card for his personal use between 2009 and 2013.
This case was investigated by the Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Rapid City Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on October 17, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Curtis Ray Austin, age 21, was sentenced to 24 months of imprisonment, 3 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Austin will also be required to register as a sex offender.
On August 10, 2013, as part of a sex-trafficking undercover operation during the Sturgis Bike Rally, Austin was arrested for attempting to obtain sex with a 15 year-old girl. Austin responded to a law enforcement-generated Internet advertisement which advertised sex with a fictitious 15 year-old girl, and he negotiated the terms of the sexual encounter. Austin then met with an undercover agent, who was posing as someone who could provide the young girl for sex in trade for an engagement ring, and Austin had the ring and condoms in his possession. Austin was subsequently arrested.
The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Federal Bureau of Investigation, Rapid City Police Department, Pennington County Sheriff’s Office, and the Meade County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Austin was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Distribution of Child Pornography and Possession of Child Pornography.
Nicholas Adam Jensen, age 24, was indicted on September 23, 2014. He appeared before U.S. Magistrate Judge Veronica Duffy on October 14, 2014, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 5 years’ imprisonment up to 20 years’ imprisonment and/or a $250,000 fine, lifetime of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between March 2013 and April 2013, at Rapid City, Jensen knowingly distributed and possessed computers files containing images of child pornography.
The charges are merely accusations and Jensen is presumed innocent until and unless proven guilty.
The investigation was conducted by the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Jensen was released pending trial. A trial date has not been set.
Press Release by United States Attorney Relating to November 2014 ElectionsRead the Press Release
Contact Person: Barbara Bowens (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles, District of South Carolina announced today that Assistant United States Attorneys (AUSA) Barbara M. Bowens and John Potterfield will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSAs Bowens and Potterfield have been appointed to serve as the District Election Officers (DEO) for the District of South Carolina , and in that capacity, they are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Nettles said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Nettles stated that AUSAs Bowens and Potterfield will be on duty in this District while the polls are open. They can be reached by the public at the following telephone numbers: (803) 929-3052 and (803) 929-3092.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. Special Agent Christopher Garrett of the local FBI field office has been appointed for election duty and can be reached by the public at (803) 214-5630.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Nettles said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”Pataskala Man Sentenced to 144 Months for Attempting to Engage in Sexual Activty with A MinorRead the Press Release
COLUMBUS, OHIO – Richard Roman, 42, of Pataskala, Ohio was sentenced in U.S. District Court to 144 months in prison and 20 years supervised release for attempting to engage in unlawful sexual activity with a minor.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Mark Porter, Special Agent in Charge, U.S. Secret Service (USSS) and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down today by U.S. District Court Judge Algenon L. Marbley.
According to court documents, Roman was discovered by undercover agents with the Franklin County ICAC Task Force after he posted a classified on Craigslist.org titled “I wanna be your Daddy.” On January 16, Roman communicated with undercover agents to arrange what he believed would be a sexual encounter with an 11-year-old female.
Subsequent to these communications, Roman was placed under arrest by members of the ICAC Task Force. Investigators discovered candy, a flower, chewing gum, condoms and a bottle of personal lubricant in Roman’s vehicle.
“Although the defendant’s offense in this case fortunately did not involve a real child, the defendant’s words and actions explicitly demonstrate that he had every intention to sexually abuse an 11-year-old child on repeated occasions” Assistant U.S. Attorney Heather Hill told the court.
Roman pleaded guilty on May 8 to one count of attempting to coerce or entice a minor to engage in unlawful sexual activity. Roman has been in custody since his arrest.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office Upper Arlington Police Department
Grove City Police Department Columbus Police Department
Grandview Heights Police Department Whitehall Police Department
Hilliard Police Department Westerville Police Department
Homeland Security Investigations U.S. Secret Service
Ohio ICAC Franklin County Prosecutor's OfficeThis case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the USSS, as well as Assistant United States Attorney Heather Hill and Special Assistant U.S. Attorney Jennifer Rausch, who represented the United States in this case.