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Thursday 16 October 2014
Edgemont Man Defrauds the Government by Submitting False Unemployment ClaimsRead the Press Release
United States Attorney Brendan V. Johnson announced that an Edgemont, South Dakota, man recently reached a settlement agreement with the United States Government for submitting false unemployment claims.
Terry Beard, age 48, was laid off from his job as a conductor for the Burlington Northern Railroad in December of 2008. He submitted 23 claim forms certifying he was entitled to receive payments for unemployment benefits from March 2009 through January 2010 with the U.S. Railroad Board (RRB). Beard failed to advise the RRB that he was at the same time employed with the City of Edgemont. Beard knowingly and willfully falsified claims to the government for unemployment benefits.
In April 2014, the United States brought a civil action against Beard to recover damages and civil penalties pursuant to the False Claims Act (FCA), 31 U.S.C. §§ 3729-3733, for the false claims Beard knowingly submitted to the RRB.
The FCA imposes liability on persons and companies who knowingly submit false claims to the government or causes another to submit a false claim to the government, or knowingly makes a false record or statement to get a benefit paid by the government. Persons who submit a false claim must pay to the United States a civil penalty of not less than $5,500 and not more than $11,000 for each false claim, plus three times the amount of damages which the government sustained.
The government signed a settlement agreement with Beard on May 27, 2014. Beard consented to a judgment in favor of the United States in the amount of $40,000 and agreed to make monthly payments over five years for submitting the false claims for unemployment insurance benefit payments to the RRB.
Previously, Beard was also indicted by a grand jury and pled guilty to the offense of making a false claim pursuant to 18 U.S.C. § 287, a Felony, for knowingly submitting the false claims to the RRB. A criminal judgment was entered against Beard in federal court, and he was sentenced on October 23, 2013, to a term of 5 years’ probation and ordered to pay restitution in the amount of $12,407.00.
The U.S. Attorney’s Office places a high priority on criminal and civil enforcement in cases involving all types of fraud committed against the government and works with various law enforcement agencies to identify and investigate these matters.
The investigation in this case was conducted by the U.S. Railroad Retirement Board. Former Assistant U.S. Attorney Wayne Venhuizen and Assistant U.S. Attorney Cheryl Schrempp DuPris prosecuted the criminal and civil cases respectively.
Eagle Butte Man Charged with Third Degree Burglary and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary and Larceny.
Randall Little Shield, age 22, was indicted on September 16, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 9, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in June 2014, Little Shield unlawfully entered the Cheyenne-Eagle Butte Junior High School and took and attempted to carry away, with intent to steal and purloin, desktop computer towers, computer keyboards, computer monitors, and various other school office supplies of a value of more than $1,000.
The charges are merely an accusation and Little Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Little Shield was remanded to the custody of the U.S. Marshals Service pending trial. Trial date has been set for November 18, 2014.
Durham Public School Employee Pleads Guilty to Federal Student Aid FraudRead the Press Release
WINSTON-SALEM, N.C. – Jasmine Crossland, of Durham, NC, pleaded guilty in federal court on October 9, 2014, to making false statements on student financial aid applications. Crossland is currently employed as a Teacher's Assistant in the Durham Public School System.
Ripley Rand, United States Attorney for the Middle District of North Carolina, and Mark A. Smith, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Technology Crimes Division, made the announcement after the pleas were accepted by United States District Judge Thomas D. Schroeder.
Jasmine Crossland’s sentencing is scheduled for February 17, 2015. Jasmine Crossland faces a maximum penalty of 5 years in prison, a fine of up to $250,000, and full payment of restitution.
Jasmine Crossland's guilty plea in this matter is an admission of the facts contained in the Criminal Information by which she was indicted. The Factual Basis of the Indictment states Jasmine Crossland attended North Carolina Central University (NCCU) as a student from 2007 to 2012. During that period, Jasmine Crossland was awarded $67,405 in U.S. Federal Education grants or loans, and $54,388 in tuition grants from the D.C. Office of the State Superintendent of Education, Government of the District of Columbia (“OSSE”) that were used to pay costs associated with attending NCCU. Over $39,000 of the grant money was refunded directly to Jasmine Crossland by NCCU. For each year Jasmine Crossland attended NCCU between 2008 and 2012, she filed a Free Application for Federal Student Aid (FAFSA) with the U.S. Department of Education and reported that her mother, Donnica Crossland, had no income. During that same period, Jasmine Crossland filed applications for education grants with the D.C. OSSE, and in those applications stated Donnica Crossland was not employed and received no income. Jasmine Crossland also submitted a Federal Student Aid Verification worksheet containing false information to NCCU and provided additional false documents in support of the worksheet, including fraudulent copies of an IRS Form 1040 that she purported to be signed by her father. When interviewed by federal agents concerning this matter, Jasmine Crossland provided a sworn written affidavit denying any fraudulent activity.
To help obtain OSSE grants for Jasmine Crossland’s use at NCCU, and to help obtain OSSE grants for Jasmine Crossland’s sister for use at a Virginia college, Donnica Crossland affirmed and signed applications on five separate occasions falsely stating that she was not employed and received no income. For each year during the period from December 2006 through December 2012, however, Donnica Crossland received substantial income, earning a total of $521,819 from her employment with the U.S. Department of Transportation. On September 18, 2014, Donnica Crossland pled guilty in Richmond, VA, to making false statements to federal agents in connection with an investigation of student aid fraud. In total, the Crossland family fraudulently obtained $234,981 from the U.S. Department of Education and OSSE.
In 2013, the U.S. Department of Education’s Office of the Inspector General commenced an investigation of the Crosslands’ aid applications and supporting documents. On July 30, 2013, Department of Education Inspector General agents interviewed Donnica Crossland. During the interview, Donnica Crossland attempted to conceal her involvement by knowingly and falsely stating that she had filled out some of Jasmine Crossland’s paperwork during the summer prior to her first year of college, but had nothing to do with their financial aid applications thereafter. On November 7, 2013, Department of Education Inspector General agents again interviewed Donnica Crossland. During the interview, Donnica Crossland attempted to conceal her involvement by knowingly and falsely stating that she had no knowledge of any of the financial assistance applications submitted by Jasmine Crossland after 2007.
This case was investigated by the U.S. Department of Education’s Office of the Inspector General. Assistant U.S. Attorney Stephen Inman is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Middle District of North Carolina. Related court documents and information may be found on the website of the District Court for the Middle District of North Carolina or on PACER by searching for Case No. 1:14-CR-381.
Detroit Heroin Courier Sentenced in Federal CourtRead the Press Release
Charleston, W.Va. – Darnez Turner, 26, of Detroit, Michigan was sentenced in federal court in Charleston today to six months of imprisonment, followed by three years of supervised release announced United States Attorney Booth Goodwin. Turner previously pled guilty in July of this year, admitting that in July of 2011 he transported heroin from Detroit to Charleston by Greyhound Bus. Turner was in route to deliver the heroin when he was stopped by an off-duty Charleston Police Officer working security at the bus station. After the officer discovered heroin in Turner’s backpack, Turner admitted that he had agreed to transport the heroin for cash on delivery.
The case was investigated by the Charleston Police Department and the Metropolitan Drug Enforcement Network Team. The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The Office of the United States Attorney, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill and heroin trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Daytona Man Convicted of Federal Drug OffenseRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell yesterday found Fortune Tyrone Hill (33, Daytona Beach) guilty of possessing with intent to distribute 28 grams or more of cocaine base, commonly known as “crack” cocaine. He faces a minimum mandatory penalty of 5 years, up to a maximum of 40 years in federal prison. Hill was indicted on July 30, 2014, and a sentencing hearing is scheduled for January 12, 2015.
According to court documents and evidence presented during the bench trial, on May 20, 2014, officers from the Daytona Beach Police Department responded to an apartment complex after an individual called 911 and reported that her vehicle license tag had been stolen. When officers arrived at the complex, Hill attempted to flee and struck one of the officers. He was eventually arrested. Plastic bags containing a total of more than 100 grams of “crack” cocaine, two digital scales, and $1,020 were recovered during a search of Hill. Officers also recovered an additional $1,630 from Hill’s rental car.
This case was investigated by the Daytona Beach Police Department and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Couple Who Lost Home in Witch-Creek Fire Indicted for FraudRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that Deborah and Douglas Tumlinson of Valley Center were arraigned today before U.S. Magistrate Judge Bernard G. Skomal on a ten-count indictment for various fraud charges they allegedly orchestrated after losing their home in the 2007 Witch Creek fire.
In October 2007, the Tumlinsons’ home in Ramona was destroyed by wildfire. The Tumlinsons originally joined a class-action lawsuit against San Diego Gas & Electric (“SDG&E”) to recoup losses from the fire. The indictment alleges that although the Tumlinsons did not enter a settlement with SDG&E, they obtained a loan from U.S. Claims, a funding company, by falsely claiming they had reached a settlement and promising to use the settlement funds as collateral. They were later sued by U.S. Claims for not making any payments on the loan.
The indictment also charges that the Tumlinsons took the proceeds from the U.S. Claims loan and laundered over $500,000 to purchase a new house in Valley Center. Next, the Tumlinsons allegedly made material misrepresentations on a loan application to Seaside Funding, Inc., a Carlsbad mortgage broker company, to obtain a $250,000 home equity loan on their new Valley Center home. They also failed to repay the Seaside Funding loan.
Finally, the Tumlinsons filed for bankruptcy three times, but are accused of intentionally failing to list the outstanding loan debt to U.S. Claims on their bankruptcy petitions.
The Tumlinsons are scheduled to appear before U.S. District Court Judge Janis L. Sammartino for a motion hearing on November 14, 2014.
DEFENDANT Case Number: 14CR2978-JLS Deborah Tumlinson Age: 43 (Counts 1-9) Douglas Tumlinson Age: 40 (Counts 1, 3-8, 10) CHARGESCount 1: Title 18, United States Code, Sections 371 (Conspiracy)
Maximum penalty: 5 years of custody; $250,000 FineCount 2: Title 18, United States Code, Sections 1343 (Wire Fraud)
Maximum penalty: 20 years of custody; $250,000 FineCounts 3-4: Title 18, United States Code, Sections 1341 (Mail Fraud)
Maximum penalty: 20 years of custody; $250,000 FineCount 5: Title 18, United States Code, Sections 1344 (Bank Fraud)
Maximum penalty: 30 years of custody; $150,000 FineCount 6: Title 18, United States Code, Sections 1014 (False Statement on Loan Application)
Maximum penalty: 30 years of custody; $1,000,000 FineCount 7: Title 18, United States Code, Sections 1957 (Money Laundering)
Maximum penalty: 10 years of custody; $250,000 FineCounts 8-10: Title 18, United States Code, Sections 152(3) (Bankruptcy Fraud)
Maximum penalty: 5 years of custody; $250,000 Fine INVESTIGATING AGENCYFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged.
All defendants are presumed innocent until the United States meets its burden in court of proving
guilt beyond a reasonable doubt.Collinsville Man Pleads Guilty to Theft of Medicaid FundsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 15, 2014, Lawrence Thigpen, 53, of Collinsville, Illinois, pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
Facts brought out in Court showed that Thigpen was falsifying time sheets in order for his girlfriend, who was also his personal assistant, to receive payments for time periods when she was actually locked up in jail. Sentencing has been set for February 13, 2015, in United States District Court in East St. Louis, Illinois. Thigpen will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Ranley Killian and Special Assistant United States Attorney Michael Hallock.
Chester County Resident Charged with Illegal ReentryRead the Press Release
Baltazar Lopez-Zamudio, a/k/a “Baltazar Lopez,” a/k/a “Jorge Sanchez-Rodriguez,” 28, of Kennett Square, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about September 17, 2014, Lopez-Zamudio, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about March 5, 2010.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Terri Marinari.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Cedar Rapids Man Sentenced to More Than 11 Years in Federal Prison for Distributing Heroin That Caused Overdose DeathRead the Press Release
A man who distributed heroin to an individual who died from using the heroin was sentenced today to more than 11 years in federal prison.
Austin Allen Martens, age 24, from Cedar Rapids, received the prison term after a July 28, 2014, guilty plea to distributing heroin.
In a plea agreement, Martens admitted that he distributed $80 worth of heroin to another individual in March 2013. The purchaser was found deceased the next day, having overdosed after using the heroin distributed by Martens.
Martens was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Martens was sentenced to 135 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Martens is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-40-1-LRR.
Cahokia Man Pleads Guilty to Health Care FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 15, 2014, Quincy O. Gamble, 39, of Cahokia, Illinois, pled guilty to an indictment charging that he engaged in a scheme to commit health care fraud. Sentencing has been set for February 15, 2015, in United States District Court in East St. Louis, Illinois. Gamble will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During his plea hearing, Gamble admitted that he had submitted false and fraudulent bills in relation to his alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Gamble admitted to falsely billing the program between December 15, 2012 and March 31, 2014, when he purportedly rendered personal assistant services to a customer when he, in fact, did not. He even submitted claims for six months after the customer, his girlfriend, died. As a result, Gamble improperly billed $7,836.56 in payments for services not performed.
This prosecution is part of the third wave of the “Operation Home Alone” initiative announced on June 5, 2014, by United States Attorney Stephen R. Wigginton. The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police, Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Liam Coonan and Special Assistant United States Attorney Michael Hallock.
If you suspect or know of an individual or company not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Broker Pleads Guilty in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Richard L. Pearson, 57, of Miami, pled guilty today in West Palm Beach before U.S. Magistrate Judge William Matthewman to conspiracy to commit wire fraud in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. At his sentencing, scheduled for January 9, 2015, before U.S. District Judge Kenneth A. Marra, the defendant faces a maximum five years imprisonment.
In connection with his guilty plea, Pearson admitted that he agreed to act as a broker for Rothstein’s settlements. Pearson would receive a sales commission from Rothstein derived from the money paid by the investor, and would pay a portion of that sales commission to RRA attorney David Boden for his assistance in the sale of these settlement. Beginning in September 2009, a group of investors (hereinafter referred to as “the Investor Group”) began investing in the confidential settlement agreements following a meeting with Rothstein. Boden and Pearson agreed that the Investor Group would pay a sales commission directly to Pearson. The Investor Group was not informed by Boden or Pearson that they were also receiving an additional undisclosed sales commission from the money paid by the Investor Group to Rothstein. The defendant further admitted that, through material misstatements and omissions made to the Investor Group, Pearson and Boden caused the Investor Group to incur a loss of approximately $2,400,000.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bonners Ferry Men Arraigned on Indictment for Violent ATM Theft in McCall and ATM Thefts in Boise, Meridian, Utah, Colorado, and WyomingRead the Press Release
Trial set December16, 2014 in Boise
BOISE — Nathan Paul Davenport, 34, and Matthew Taber Annable, 39, both formerly of Bonners Ferry, Idaho, were arraigned today in Boise by United States Magistrate Judge Mikel H. Williams on an indictment charging multiple bank larcenies, conspiracy, and use of a deadly weapon during a felony offense, U.S. Attorney Wendy J. Olson announced. Trial is set for December 16, 2014, in front of U.S. District Judge Edward J. Lodge.
BOISE — Nathan Paul Davenport, 34, and Matthew Taber Annable, 39, both formerly of Bonners Ferry, Idaho, were arraigned today in Boise by United States Magistrate Judge Mikel H. Williams on an indictment charging multiple bank larcenies, conspiracy, and use of a deadly weapon during a felony offense, U.S. Attorney Wendy J. Olson announced. Trial is set for December 16, 2014, in front of U.S. Chief District Judge B. Lynn Winmill.
Davenport and Annable were arrested without incident on January 12, 2014, in Orem, Utah, in connection with a separate ATM robbery in Wyoming. The two men have been in custody on Wyoming charges, prior to being transported to Boise. In the District of Wyoming, both men pleaded guilty to single counts of ATM Theft and Aiding and Abetting and each received a fourteen month prison sentence.
The charge of bank larceny by use of a dangerous weapon as charged in the Idaho indictment is punishable by up to 25 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The charge of use of a deadly weapon during the commission of a felony offense is punishable by a mandatory minimum of ten years up to life imprisonment, a maximum fine of $250,000, and up to five years supervised release. The charge of bank larceny is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of conspiracy to commit bank larceny is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case is being investigated by the Federal Bureau of Investigation, the Idaho State Police, the Valley County Sheriff’s Office, and the McCall Police Department.
Indictments and complaints are a means of charging a person with criminal activity. They are not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bogalusa Man, Donelle Piggott, Sentenced for Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DONELLE PIGGOTT, age 49, resident of Bogalusa, was sentenced on October 14, 2014, having previously pled guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base and misprision of a felony.
U.S. District Judge Jay C. Zainey sentenced PIGOTT to a 48-month term of imprisonment and 3 years of supervised release.
On February 6, 2014, PIGGOTT was one of 15 defendants charged in an 8-count indictment. According to court documents, the indictment was based on court-authorized wiretaps that recorded conversations between STEVEN HAYNES, who has pleaded guilty in this case, and the defendants, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Autauga County Man Sentenced to 210 Months in Federal Prison for his Role in Drug OrganizationRead the Press Release
Montgomery, Alabama - Mark Edward Elliott (52), of Deatsville, Ala., was sentenced on October 15, 2014 to serve 210 months in prison, to be followed by 5 years of supervised release for conspiracy to distribute a controlled substance, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
According to court documents, Elliot was the leader of a large methamphetamine distribution operation that was responsible for bringing several pounds of the controlled substance from Atlanta, Georgia to central Alabama, including Autauga, Elmore and Montgomery counties. Elliot and his co-conspirators were arrested in March of 2013 after law enforcement executed five federal search warrants and found large amounts of “ice” methamphetamine, cash, and firearms, along with and several vehicles that were being used to transport illegal drugs.
During the investigation, it was discovered that several individuals in this case had used violence, threats of violence, and intimidation to further their drug dealing efforts and to collect money. Investigators also learned that Elliott, also known as “Mighty Whitey,” was a captain in the Aryan Brotherhood, a powerful prison gang with white supremacy beliefs. Elliott has tattoos of Swastikas, the words “White Power” and SS in lightning bolts on his body, all tattoos that indicate membership in the Aryan Brotherhood.
This case was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Elmore County Sheriff’s Office, the Gulf Coast High Intensity Drug Trafficking Area Task Force, the Central Alabama Drug Task Force, the Autauga County Sherriff’s Office, the Wetumpka Police Department and the Prattville Police Department.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Attorney General Holder Statement on Announcement that Deputy Attorney General James M. Cole Will Depart the Justice DepartmentRead the Press Release
Attorney General Eric Holder released the following statement Thursday after Deputy Attorney General James M. Cole announced his plans to depart the Justice Department in the coming months:
“Over the past four years, Jim Cole has been my indispensable partner in leading the U.S. Department of Justice and extending the promise of equality under the law for everyone in this country. Jim's leadership and ingenuity have been critical in attaining historic results on behalf of the American people. During times of great challenge and unprecedented resource constraints, I have relied upon Jim to ensure that the Justice Department operates as effectively and efficiently as possible. His guidance and wise counsel have made him an irreplaceable advisor, a proven and trusted leader, and a champion for the cause of justice. I have been proud to count him as a colleague and a friend for nearly four decades. I thank him for his tireless work and faithful service over the years. And although he will be dearly missed by dedicated public servants at every level of the Justice Department, I’m happy that we’ll be able to work together in the coming months.”
Attorney General Holder Announces Lisa Foster to Serve as Director of the Access to Justice InitiativeRead the Press Release
Attorney General Eric Holder announced on Thursday Lisa Foster as the Director of the Access to Justice Initiative (ATJ). Founded in 2010 by Attorney General Holder, ATJ seeks to address the access-to-justice crisis in the criminal and civil justice system by working within the department, across federal agencies, and with state, local and tribal justice system stakeholders to increase access to counsel and legal assistance and to improve the systems that serve people who are unable to afford lawyers. By supporting the right to counsel in state and local courts, educating the defender community, supporting defender services in tribal courts, strengthening the juvenile justice system, and enhancing federal programs though civil legal aid, ATJ staff work to help the justice system efficiently deliver outcomes that are fair and accessible to all, irrespective of wealth and status.
“Lisa is a staunch defender of due process, a champion of the rights of all Americans, and a passionate advocate for equal justice under law,” said Attorney General Eric Holder. “Throughout her impressive career – from her earliest days in public interest law, to her work as a legal aid provider and her distinguished service on the bench – she has consistently demonstrated superior judgment, impeccable integrity, and a steadfast commitment to the high ideals that the Access to Justice Initiative is charged with protecting. I have no doubt that, under Lisa’s leadership, this important initiative will continue to expand its groundbreaking work to build the more effective justice system – and the more just society – that all Americans deserve.”
Prior to joining the department, Foster served for ten years as a California Superior Court Judge in San Diego presiding over criminal, civil and family law departments. Foster began her legal career as a Staff Attorney at the Center for Law in the Public Interest in Los Angeles and later joined the Legal Aid Foundation of Los Angeles. Following her service at the Legal Aid Foundation of Los Angeles, Foster served as the Executive Director of California Common Cause before becoming an Adjunct Professor at the University of San Diego Law School and later joining the law firm of Phillips & Cohen as Of Counsel. For the past year, Foster was a judicial fellow in the Office of Senator Edward J. Markey where she advised Senator Markey on a variety of issues including judicial nominees, patent legislation, regulatory reform and international law and policy. She received a B.A. in American Studies from Stanford University and J.D., magna cum laude, from Harvard Law School.
“The Access to Justice Initiative does critical work to increase access to counsel and legal assistance for all,” said Acting Associate Attorney General Stuart F. Delery. “We are privileged to have a person like Lisa, who has dedicated her career to supporting a justice system that is fair and accessible to everyone, guiding this important effort. I am confident that, with Lisa’s leadership, the initiative will continue to build on the outstanding work done by Deborah Leff, Karen Lash, and the dedicated team working with them.”
Last month, as part of ATJ’s work with the Civil Rights Division, the department filed a statement of interest with the Supreme Court of the State of New York, Albany County, in Hurrell-Harring v. State of New York. In this class action litigation, the plaintiffs allege that, due to systemic failures in four New York counties, indigent criminal defendants have been constructively denied the right to counsel. And in April, ATJ launched the Legal Aid Interagency Roundtable Toolkit. This online resource located on ATJ’s website is the product of collaboration with the White House Domestic Policy Council and 18 federal agencies dedicated to examining current programs and practices in order to create better outcomes.
To learn more about the Access to Justice Initiative, visit http://www.justice.gov/atj/.
Attorney Charged in Scheme to Defraud Chester County CompanyRead the Press Release
PHILADELPHIA – Alexander Burke, 58, of Bristol, England, and formerly of Upper Montclair, New Jersey, was charged today by Indictment with conspiring to commit wire fraud and money laundering, and with substantive wire fraud and money laundering violations, announced United States Attorney Zane David Memeger.
The Indictment alleges that Burke and another attorney engaged in a scheme to defraud Company A, a company in Malvern, Pennsylvania, by billing the company for legal work not done and splitting the resulting payments from Company A. Burke was a patent attorney for Company A, and as part of his job he was permitted to hire outside counsel to draft patents, respond to patent office actions, and to write appeals in patent cases. Beginning in the summer of 2008, he and another attorney, an outside patent counsel, agreed that Burke would assign patent-related projects to the attorney, the attorney would do no work on the projects, and the attorney would bill Company A for the work assigned but not done. Burke himself, although he received salary from Company A to do patent work, did the patent work. When the outside attorney billed Company A, Burke approved the invoices for payment. Company A then paid the outside attorney and the outside attorney sent most of the money to Burke.
This fraudulent scheme continued until approximately June of 2013. Over the course of the scheme, Burke approved invoices from the outside attorney for work not done in the amount of approximately $2,481,020. Although Company A discovered the scheme and did not pay some of the final invoices, over the five years that Burke continued the scheme Company A paid out approximately $2,417,665 for work billed for, but not done, by the outside counsel in approximately 588 fraudulent invoices.
The indictment further alleges that Burke and the outside counsel conspired to commit money laundering by agreeing to send Burke’s share of the money from the counsel’s account, where Company A had paid it, to Burke’s account at NJM Bank in New Jersey which he had set up in the name of a company called Electrical Services & Networks. These transactions totaled $2,098,977. Burke further committed twelve acts of money laundering by causing wire transfers from this account to an additional bank account he had set up with another person at a Barclay’s Bank in the Isle of Man in the name of a different company. The charged transactions to the bank in the Isle of Man totaled $1,318,171.If convicted the defendant faces a maximum possible sentence of 340 years imprisonment, $6,000,000 fine or twice the amounts of gross gain and property involved in the counts, whichever is more, restitution, forfeiture, and a $2300 special assessment.
The case was investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Assistant United States Attorney Christopher D. Poole Recognized for His Work with the Chattanooga Violence Reduction InitiativeRead the Press Release
CHATTANOOGA, Tenn. – Assistant U.S. Attorney Christopher D. Poole received the National Association of Former U.S. Attorneys Exceptional Service Award for his work with the Chattanooga Violence Reduction Act. U.S. Attorney William C. Killian presented the award plaque, on behalf of the National Association of Former U.S. Attorneys (NAFUSA), to Poole at an office ceremony on Oct. 15, 2014.
A letter from the NAFUSA which accompanied the plaque stated, “This award is given in recognition of the exemplary service provided by your Assistant to the United States Attorneys’ Office, the Department of Justice and to the citizens of the United States of America. As former United States Attorneys, we can recognize a great Assistant United States Attorney.”
U.S. Attorney William C. Killian congratulated Assistant U.S. Attorney Poole on this prestigious award and stated, “The Eastern District of Tennessee is fortunate to have many quality federal prosecutors. I am proud that Assistant U.S. Attorney Poole was recognized for his exceptional work with this important initiative with the city of Chattanooga.”
The Chattanooga Violence Reduction Initiative was initiated by the City of Chattanooga in 2013. The program aims to reduce violent crime through a multistep approach. It includes identifying a targeted focus, research and analyses of crime patterns, direct communication with violent offenders, and arrests of and sustained follow-through with individuals caught in a dynamic that pits different groups against one another in a retaliatory cycle. The initiative is based on similar models used in High Point, N.C., Boston, Chicago and other cities.
Alleged Members of Large Heroin Trafficking Ring ChargedRead the Press Release
Federal, State and Local Law Enforcement Authorities Arrest 14 in Coordinated Takedown
ASBURY PARK, N.J. – Federal and state law enforcement authorities today arrested 14 alleged members and suppliers of a large-scale drug trafficking organization responsible for distributing heroin and cocaine throughout Monmouth, Ocean, and Middlesex counties, U.S. Attorney Paul J. Fishman announced.
The alleged leaders of the conspiracy, Herve Cadet, a/k/a “Gotti,” a/k/a “Bro,” 29, of Neptune and Sayreville, New Jersey; and Eric Smith, a/k/a “EV,” a/k/a “E,” 42, of Manchester, New Jersey, were among the 22 defendants charged in two complaints unsealed today, 14 of whom were arrested this morningas part of a coordinated takedown by federal and local law enforcement authorities. Smith has been incarcerated in New Jersey in connection with New Jersey state offenses since September 2014.The remainingseven defendants remain at large.
Each defendant (see chart below) is charged with one count of conspiracy to distribute one kilogram or more of heroin. Those arrested today are scheduled to make their initial court appearances this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.
Also was arrested on a separate complaint today were Joel Mendez, a/k/a “Joey Mendez,” a/k/a “Crack,” 34, of Bradley Beach, New Jersey, and Alfred Lyons III, a/k/a “Alfie,” 33, of Neptune, New Jersey. They were each charged with conspiracy to distribute heroin. Mendez remains at large.
“The criminal complaints describe drug trafficking operations that have been responsible for sizeable quantities of illegal narcotics on the streets of Asbury Park, Neptune Township, and the surrounding towns,” U.S. Attorney Fishman said. “We hope and expect that today’s arrests will make a real difference to the drug trafficking trade in these counties. This is not the last that you will hear from us in this fight.”
“This lengthy and collaborative investigation has resulted in the arrests of major suppliers of heroin in the Monmouth and Ocean county areas,” Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “DEA and its law enforcement partners will continue to investigate those seeking to poison our communities.”
According to the federal criminal complaints filed in Trenton federal court:
From November 2013 through October 2014, Cadet, Smith, and the other members of their drug trafficking organization (the “Cadet DTO”) conspired to sell illegal drugs – chiefly heroin – in Monmouth, Ocean and Middlesex counties. Through the authorized interception of cell phone calls, the use of confidential informants and other means, law enforcement learned Cadet and Smith were leaders of the Cadet DTO, responsible for identifying sources of heroin supply. Cadet and Smith also oversaw distributors and other conspirators, who sold, packaged and stored the drugs. Members used stash houses, spoke in code and used Haitian Creole to avoid detection by law enforcement.
The Cadet DTO sold prepackaged bundles of heroin, containing approximately one-fifth of a gram, and “bricks,” which contained approximately one gram. Members of the Cadet DTO also packaged heroin for subsequent distribution to dealers and others. Discussions about drug quality, customer satisfaction, pricing and the nature of the drug distribution business were captured on calls recorded by law enforcement.
“This operation demonstrates the cooperative commitment of the multi-levels of law enforcement focused on eradicating the epidemic killing people everywhere, including Monmouth County,” First Assistant Prosecutor Marc C. LeMieux said. “We are committed to putting these purveyors of death out of business.”
The conspiracy count with which each defendant is charged carries a minimum potential penalty of 10 years in prison, a maximum of life in prison and a $10 million fine. The conspiracy count charging Mendez and Lyons carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Fishman credited special agents of the DEA, Newark Division, under the direction of Special Agent in Charge Kotowski; and officers of the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher J. Gramiccioni, who is currently wrapping up a U.S. Navy overseas deployment to Afghanistan as part of Operation Enduring Freedom, with the investigation leading to today’s charges. He also thanked special agents of Immigration and Customs Enforcement-Homeland Security Investigation, the U.S. Marshals Service, the Ocean County Prosecutor’s Office; the Asbury Park, Neptune Township and Keansburg police departments, and the Monmouth County Sheriff’s Office for their roles in the case.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
14-372
Defendant
Age
Residence
29
Neptune and Sayreville, N.J.
Eric Smith, a/k/a “EV,” a/k/a “E”
42
Manchester, N.J.
*Dwight Simon, a/k/a “Break Bread”
30
Asbury Park, N.J.
*Noble El-Bey, a/k/a “T,” a/k/a “Terry
42
Asbury Park
Evens Joseph, a/k/a “Dirty Evan,” a/k/a “De”
36
Neptune
*Steve Jean-Baptiste, a/k/a “Black”
29
Asbury Park
Harriel Jean-Baptiste, a/k/a “Harry”
25
Asbury Park
*Junior Parcias, a/k/a “Peso”
28
Neptune
Kurtis Barnes, a/k/a “Gotti”
36
Lakewood, N.J.
Charlene Braithwaite-Lovet, a/k/a “Shay”
40
Asbury Park
Athena L. Gillis, a/k/a “Shorty”
28
Asbury Park
*Jerrel K. Collins, a/k/a “Fat Boy”
27
Ocean Township, N.J.
Delovi R. Canales, a/k/a “Butter”
48
Toms River, N.J.
Laurie A. Matthews
48
Whiting, N.J.
Amal J. Blaine, a/k/a “Mal”
27
Lakewood, N.J.
Mackinson Casimir, a/k/a “Scrappy”
26
Ocean Township
Reginald Walker, a/k/a “Red”
45
Red Bank, N.J.
*Brandon R. Keyes, a/k/a “BK”
31
Neptune, N.J.
Schneider Monestime
32
Asbury Park
Marvin T. Brodie, a/k/a “Marv”
44
Manchester
*denotes at large
Cadet, Herve et al. Complaint
Mendez, Joel et al. ComplaintAlbany Man Sentenced for Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – PAUL SCROM, 63, of Albany, New York, was sentenced today by the Honorable Thomas J. McAvoy to 72 months in federal prison followed by a 10-year term of supervised release, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation. SCROM is also required to register as a sex offender. The sentence follows SCROM’s May 22, 2014 guilty plea to distribution of child pornography.
As part of his guilty plea, SCROM admitted that he distributed images and movies of child pornography through a peer-to-peer file sharing program. On September 12, 2013, investigators searched SCROM’s home and recovered numerous images and videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation, Albany Division and is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Acoma Pueblo Woman Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Roxanne C. Lewis, 26, an enrolled member of the Acoma Pueblo who resides in Acoma, N.M., was sentenced today to a year and a day in federal prison followed by a year of supervised release for her federal assault conviction.
Lewis was arrested on Jan. 21, 2014, on a criminal complaint alleging that she assaulted a 25-year-old Kewa Pueblo man by stabbing him with a knife. The assault occurred in a location within Acoma Pueblo in Cibola County, N.M., on Jan. 9, 2014.
On June 18, 2014, Lewis entered a guilty plea to a felony information charging her with aggravated assault with a deadly weapon. Lewis admitted assaulting the victim with a knife during a domestic dispute. The victim sustained three stab wounds that required medical treatment.
The case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Acoma Police Department, and was prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
34 in Custody in Connection with Austin-Based Drug Distribution OperationRead the Press Release
Federal and state authorities have arrested 24 individuals, including Austin lawyers Richard Patrick Fagerberg, age 45, and David Ramos, age 39, for their roles in a cocaine and methamphetamine distribution operation announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Two related federal grand jury indictments, unsealed this afternoon, charges those arrested, as well as ten others who were already in custody prior to today, with conspiracy to distribute a controlled substance. A list of the defendants is below.
According to the indictments, the defendants have allegedly participated in a conspiracy to distribute various amounts of cocaine and methamphetamine since May 2013. During this 16-month-long operation, authorities have seized approximately 87 kilograms of cocaine and two kilograms of methamphetamine, four firearms, close to $1.5 million in criminally derived assets in connection with this investigation.
“Nothing is more important than the safety and security of our communities. DEA, and our federal, state, and local law enforcement partners in Austin and throughout Texas, will remain relentless in our pursuit of the vicious criminal individuals and drug trafficking organizations who threaten our safety and stability. These arrests send a strong and unified message that these crimes will not be tolerated in our communities and those who commit these offenses will be brought to justice,” stated DEA Special Agent in Charge Joseph M. Arabit.
Upon conviction, the defendants face statutory penalties of between ten years and life imprisonment or between five and 40 years imprisonment.
“Organized crime and drug trafficking are a serious threat to public safety in Texas, and DPS vigilantly works alongside our law enforcement partners to detect, deter and dismantle drug trafficking organizations operating in our communities,” said DPS Regional Commander Freeman Martin. “This long-term investigation is an ideal example of how law enforcement at all levels works together to put suspected criminals behind bars and protect Texans.”
These charges and arrests resulted from an investigation conducted by the Austin High Intensity Drug Trafficking Area (HIDTA) Task Force. The Austin HIDTA Task Force is made up of investigators from the Drug Enforcement Administration, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Texas Department of Public Safety, Austin Police Department, Travis County Sheriff’s Office, Bastrop County Sheriff’s Office, Williamson County Sheriff’s Office, Hays County Sheriff’s Office, Cedar Park Police Department and the Georgetown Police Department. Other agencies participating in today’s arrests include Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service, Round Rock Police Department, Travis County District Attorney’s Office and the Williamson County District Attorney’s Office. Assistant United States Attorneys Mark Marshall and Dan Guess are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
ARRESTED YESTERDAY (24)CASE # NAME AGE RESIDENCE STAT. PENALTY
A14cr292 DAVID DEPAZ 22 Austin, TX 10 years to life
A14cr292 HECTOR MAYORGA 23 Austin 10 years to life
A14cr292 ALVARO SALINAS 46 Austin 5 years to 40 years
A14cr292 ARTHUR VILLALOBOS 34 Taylor, TX 5 years to 40 years
A14cr292 JOEL AVILEZ-JAIMES 38 Austin 5 years to 40 years
A14cr292 VERONICA DeLEON 31 Taylor 5 years to 40 years
A14cr292 RENE PEREZ 35 Austin 10 years to life
A14cr292 ALEJANDRO RODRIGUEZ 41 Austin 5 years to 40 years
A14cr292 FRANCISCO LOPEZ 38 Austin 10 years to life
A14cr292 FERNANDO TEJEDA 30 Austin 10 years to life
A14cr292 JAVIER TEJEDA 24 Austin 5 years to 40 years
A14cr292 ROGELIO VILLANUEVA 35 Austin 5 years to 40 years
A14cr292 JAMES YERKES 46 Austin 10 years to life
A14cr292 TIMOTHY COOPER 49 Debray, FL 5 years to 40 years
A14cr300 RAY VILLEGAS 42 Austin 10 years to life
A14cr300 VALERIA CUENCA 23 Kyle, TX 10 years to life
A14cr300 ANTONIO NIETO 23 Austin 10 years to life
A14cr300 GERVACIO MORALES 31 Kyle 10 years to life
A14cr300 BENJAMIN TYLER GOLDBERG 26 Austin 10 years to life
A14cr300 VICTOR HUGO EXCALANO-ZUVIETA 25 Austin 10 years to life
A14cr300 RICHARD PATRICK FAGERBERG 45 Austin 10 years to life
A14cr300 DAVID RAMOS 39 Austin 10 years to life
A14cr300 EUGENIO LUCIO 60 San Benito, TX 10 years to life
A14cr300 JUAN MAXIMO RUIZ 33 Brownsville, TX 10 years to lifeALREADY IN CUSTODY PRIOR TO YESTERDAY (10)
CASE # NAME AGE RESIDENCE STAT. PENALTY
A14cr292 JOSE NIETO-FIGUEROA 23 Pflugerville, TX 5 years to 40 years
A14cr292 RICARDO CRUZ 53 Pharr, TX 10 years to life
A14cr292 GERARDO DIAZ 23 Austin, TX 10 years to life
A14cr292 JUAN GONZALEZ 28 Austin 10 years to life
A14cr300 OSCAR ARMANDO AVILA-JAIMES 35 Austin 10 years to life
A14cr300 ARMANDO GUTIERREZ 40 Austin 10 years to life
A14cr300 JESUS ANGELOS DOMINGUEZ 29 Austin 10 years to life
A14cr300 OSCAR SUAREZ-LARA 29 Austin 10 years to life
A14cr300 JOSE LUIS REYES-VALLE 38 Austin 10 years to life
A14cr300 ANTONIO de JESUS
HERNANDEZ-GONZALEZ 29 Austin 10 years to life
Wednesday 15 October 2014
Woman Sentenced to More Than 17 Years in Prison for Producing and Distributing Child PornographyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANGELA D. MARTIN, also known as Angela Haussmann, 30, of Wallingford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 210 months of imprisonment, followed by 20 years of supervised release.
According to court documents and statements made in court, in August 2013, MARTIN sexually abused a female child, filmed the abuse with her cell phone, and then emailed the video to another individual in California. The victim was approximately three years old at the time of the abuse.
In addition to filming and distributing the video of the sexual abuse that she inflicted on the female child, MARTIN possessed and distributed other child pornography that she received from individuals with whom she was communicating via email, text messaging, and chat applications.
MARTIN is a registered sex offender as the result of a prior felony conviction in the state of Connecticut for second degree sexual assault of a minor.
MARTIN has been detained since her arrest on September 19, 2013. On March 28, 2014, she pleaded guilty to one count of production of child pornography.
This matter was investigated by the Federal Bureau of Investigation, the Wallingford Police Department, and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Woman Arrested on Charge of Illegal Re-EntryRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Olivia Leigh Suriani, 32, a citizen of Canada, was arrested and charged by criminal complaint with illegal re-entry. The charge carries a maximum penalty of two years in prison, a fine of $250,000, or both
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that according to the complaint, Niagara Regional Police alerted U.S. Border Patrol that a woman was onboard a kayak heading toward Beaver Island State Park from Canada. Upon arrival, Suriani was found near Beaver Island Park approaching a taxi. When questioned by a Border Patrol agent, the defendant admitted to entering the United States illegally on the kayak. Suriani was previously removed from the United States on January 13, 2014 and returned to Canada after she arrived onboard a cruise ship.
Suriani made an initial appearance before U.S. Magistrate Judge Hugh B. Scott and is being held pending a detention hearing on October 17, 2014.
The criminal complaint is the culmination of an investigation on the part of Agents of US Border Patrol, under the direction of Patrol Agent in Charge Chris Buskey.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Washington Woman Sentenced for Conspiring to Pass Counterfeit Money OrdersRead the Press Release
HELENA - Kelly Lorraine Watts, a 46-year old resident of Renton, Washington, was sentenced today for conspiracy to utter and possess forged securities with intent to deceive an organization. Watts was sentenced after pleading guilty on May 20, 2014. Watts was sentenced 18 months in prison 3 years supervised release. She was also ordered to pay $30,360 in restitution.
In an Offer of Proof filed by Assistant U.S. Attorney Chad Spraker, the government told the court that in August 2013, James Hernandez and Kelly Watts were arrested in Butte after Hernandez was caught attempting to pass a counterfeit money order. Law enforcement questioned Hernandez and Watts leading to the discovery that they had been passing counterfeit money orders to obtain goods and services in Washington, Oregon, Idaho, and Montana from December 2012 until they were arrested.
Law Enforcement officers searched Hernandez's truck and discovered a number of contraband including 70 money grams in envelopes with a woman's handwriting on the outside; several cashed money grams; a ledger in a woman's handwriting listing the names of casinos and stores; computer software, paper, and cutting material commonly used to manufacture counterfeit money orders; and five Washington driver's licenses with Hernandez's picture, each with a different name.
A search of Watts' purse revealed loadable debit cards. During the investigation, Watts stated that she kept a ledger of locations where she and Hernandez cashed money orders and the orders' amounts. Several stores identified in receipts were contacted by law enforcement. It was discovered that fraudulent money orders had been used to purchase goods and services throughout Montana.
In addition, the investigation revealed that Hernandez had been manufacturing fraudulent money orders from November 2012 until their arrest in August 2013. Watts and Hernandez traveled to Hillsboro, Pendleton and Ontario, Oregon, Vancouver, Washington, and Kalispell while cashing money orders at various stores and casinos. After purchasing merchandise using the fraudulent money orders, Watts and Hernandez would wait a period of time before returning the items for cash.
The investigation was conducted by Homeland Security Investigations and the United States Secret Service.
Update on Portland, Oregon Man Sentenced Earlier this Month for Defrauding His Own Company Out of $1.4 MillionRead the Press Release
PORTLAND, Ore. – David Schrader, 47, of Portland, Oregon, was sentenced October 1 by U.S. District Court Judge Robert E. Jones to 46 months in prison for the crime of wire fraud and ordered to pay over $1.4 million in restitution to DAT Solutions (formerly Transcore), the victim of his crime. As summarized in the October 2 press release on this matter, Schrader had been employed as the Senior Vice President of Operations, and had accomplished his theft by submitting false expense reports to DAT’s accounting department that either falsified or inflated the amounts for which defendant was actually entitled to receive reimbursement. As part of his fraud, Schrader forged the signature of DAT’s president, fabricated approval emails from the president on his fraudulent reports, and submitted false credit card statements.
At Schrader’s October 1 sentencing, Judge Jones permitted Schrader to self-surrender in January 2015 to begin serving his sentence, with the expectation that Schrader would continue his efforts to sell several pieces of real estate until that time and apply the proceeds of those sales to his restitution obligation. The government had previously filed liens on multiple properties Schrader owns in the Portland area in order to secure its interest and facilitate restitution to Schrader’s victim.
The day after Schrader’s sentencing, his attorneys contacted prosecutors to inform them that one of Schrader’s properties was owned equally by Schrader and an associate, and to request that only fifty percent of the sale proceeds be applied to Schrader’s restitution obligation, with the other fifty percent going to Schrader’s associate. After confirming that Schrader’s associate was not listed in county property records, prosecutors refused the request on the ground that Schrader’s alleged associate had no legal interest in the property, regardless of any informal arrangement the two men might have had. Schrader’s attorneys then filed a motion attaching an “ownership contract executed in March 2005” between Schrader and his associate, and requested that the Court require the government to give half of the property’s proceeds to Schrader’s associate rather than to DAT. Following this filing, the government learned from Schrader’s associate that Schrader had approached him just days after being sentenced and asked him to sign and backdate the “ownership contract.”
Schrader appeared before Judge Jones again late last week to answer for this conduct. Schrader’s attorneys attempted to withdraw the fraudulent contract from the record, but Judge Jones denied the request, indicating that it “comes a bit late.” Judge Jones then revoked Schrader’s pretrial release, finding that his conduct was a continuation of the activity he had just been sentenced for, namely that of “a liar, a cheat, and a crook.” He then ordered that Schrader be taken immediately into custody to begin serving his 46-month sentence. Judge Jones refused Schrader’s attorneys’ request that they be allowed to escort Schrader to the U.S. Marshal’s Service rather than waiting for the Marshals to arrive in the courtroom, indicating that he did not “trust him farther than I can spit.”
The investigation of this case was conducted by the FBI, and the case was prosecuted by Assistant U.S. Attorneys Michelle Kerin and Katie Lorenz.
United States Attorney’s Office Announces Charges Against Former Federal Corrections OfficerRead the Press Release
Officer indicted for allegedly smuggling contraband into the Terre Haute facility.
TERRE HAUTE – Josh J. Minkler, the Acting United States Attorney, today announced federal charges against a former corrections officer at the United States Penitentiary in Terre Haute, IN. Edward Tunwar, 54, was charged with distribution of a controlled substance and two counts of providing contraband in a prison.
“We have a right as citizens to put full trust and confidence in our public employees,” said Minkler. “When they betray our trust, they will face the full extent of federal law.”
The government alleges that on December 16, 2013, Tunwar, while working as a corrections officer, provided an inmate of the facility with heroin. It is further alleged that between June 1, and December 16, 2014, Tunwar provided an inmate with a cellular telephone and tobacco products.
This case was jointly investigated by the Federal Bureau of Investigation and the United States Department of Justice Office of the Inspector General.
“The FBI will continue to aggressively pursue breaches of the public trust at the local, state and federal levels of government. Public corruption remains a high priority criminal program,” said Special Agent in Charge W. Jay Abbott.
“We are pleased to collaborate with our law enforcement partners to pursue such significant misconduct by a government employee" stated John F. Oleskowicz, Special Agent in Charge of the United States Department of Justice Office of the Inspector General, Chicago Field Office. Oleskowicz continued "We hope that these charges will serve as a deterrence to others who might betray the public trust."
Tunwar had his initial appearance in Federal Court today before a magistrate judge.
According to Senior Litigation Counsel Bradley Blackington, who is prosecuting the case for the government, Tunwar faces up to 41 years in prison if convicted on all counts.
An indictment is only a charge and not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt
U.S. Attorney Kenyen R. Brown and RSA Agree to Increase Access to Battle House Hotel for People with DisabilitiesRead the Press Release
United States Attorney Kenyen R. Brown announced that his office has reached an agreement with the Employees and the Teachers Retirement Systems of Alabama (collectively “RSA”) and their wholly owned subsidiary PCH Hotels and Resorts, Inc. (“PCH”) to make it easier for individuals with disabilities to use the landmark Renaissance Mobile Battle House Hotel and Spa (“Hotel”) in Mobile, AL. The agreement, filed as a consent decree along with a complaint, was approved today by the U.S. District Court for the Southern District of Alabama. It resolves charges by the United States Attorney’s Office that RSA and PCH violated Title III of the Americans with Disabilities Act (ADA) when they constructed and renovated the Battle House Hotel.
The Battle House, a landmark building in downtown Mobile, Alabama, was originally built in 1852. The current structure, built in 1908, was central to the city’s commercial and social life for decades. Closed in the early 1970’s, the hotel remained shuttered until it was purchased by RSA in 2002. During the course of an extensive restoration, RSA added a new parking deck, spa, pool, and fitness center, and constructed the adjacent office building, RSA Battle House Tower (“the Tower’). Today the Battle House once again plays an important part in downtown Mobile civic life and is the flagship of RSA investment in Mobile.
Acting on a complaint from a wheelchair user, in 2013 the United States conducted an ADA compliance survey of the Hotel and Tower. RSA cooperated fully in the survey process, which revealed significant violations of the ADA. In order to ensure that people with disabilities be able to use the Battle House and its amenities to the fullest extent possible, RSA has agreed to remedy all ADA violations and to enter into the consent decree.
The complaint alleges that, among other problems:
- The main entrance to the Battle House on Royal Street has no curb ramps or demarcated passenger loading zones. Wheelchair users must travel along a lane of traffic to reach a city curb ramp at the intersection of Royal and St. Francis Streets to gain access to the Hotel;
- The interior ramp for wheelchair users inside the Dauphin Street entrance is partially obstructed by a structural column. Various other ramps and corridors in the Hotel and Tower are too steep, or do not allow proper turning room;
- Wheelchair users entering the Battle House from St. Francis Street find their path to the Hotel blocked by stairs. As a result, they must turn in the opposite direction and circle around the entire ground floor of the Tower before reaching a ramp which leads to the Hotel;
- The main swimming pool and outdoor hot tub, as well as the spa whirlpools in the men’s and women’s spas, provide no means of access for people with disabilities. Showers and dressing rooms in the spas and fitness center also fail to meet ADA standards;
- The best rooms in the Hotel are unavailable to people with disabilities. Bathrooms and other features of those rooms that are accessible do not comply with the ADA standards;
- There is no signage to indicate the accessible entrances to the Hotel or accessible routes within the Hotel.
In addition to requiring RSA and PCH to remedy ADA violations described in the complaint, the consent decree commits them to adopt new policies and procedures and to provide training on the ADA to employees.
“Ensuring that the historic Battle House is accessible to everyone, including individuals with disabilities, is a win-win resolution,” said United States Attorney for the Southern District of Alabama Kenyen R. Brown. “ADA compliant facilities aid the disabled and make our community more welcoming and business friendly. We commend RSA and PCH for their commitment to open the Battle House to everyone, regardless of disability.”
The claims settled by this agreement are allegations only, and there has been no determination of liability. The investigation and litigation were conducted by the United States Attorney’s Office for the Southern District of Alabama and the Justice Department’s Civil Rights Division. The US Attorney’s Office commends former Assistant United States Attorney Gary Moore and ADA contractor Rick Hinrichs for their investigation of this case, along with DOJ Architect Diane Perry. The attorney handling the case is Assistant United States Attorney Holly L. Wiseman.
The case is captioned United States of America v. Employees Retirement Systems of Alabama, Teachers’ Retirement Systems of Alabama, and PCH Hotels and Resorts, Inc., 1:14-cv-00478-CB-N.
The consent decree was reached under Title III of the ADA, which prohibits discrimination against individuals with disabilities by certain businesses that are open to the public, including hotels. Those interested in finding out more about the ADA may call the Justice Department’s toll-free information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.Two Illegal Aliens Charged with Immigration ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced that separate criminal charges were filed today in U.S. District Court in Harrisburg against two illegal aliens.
Ramiro Ochoa-Fuentes, age 21, was charged in a one-count indictment by a federal grand jury alleging that Ochoa-Fuentes, a Mexican citizen, who has previously been arrested and deported from the United States on July 6, 2011, reentered the United States unlawfully and was found in Franklin County, Pennsylvania.
If convicted, Ochoa-Fuentes faces a maximum sentence of up to 2 years’ imprisonment and a $250,000 fine.
Pedro Hernandez-Hernandez, age 49, was charged in a one-count indictment alleging that Hernandez-Hernandez, a Mexican citizen, who has previously been arrested and deported from the United States on June 13, 2007, reentered the United States unlawfully and was found in Franklin County, Pennsylvania.
If convicted, Hernandez-Hernandez faces a maximum sentence of up to 6 months’ imprisonment and a $250,000 fine.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and are being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Travel Agent Pleads Guilty to $360,000 Fraud Scheme, Stole from Willard High School BandRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a travel agent pleaded guilty in federal court today for stealing $360,000 from the Willard High School Band Boosters, which forced the cancellation of a trip to Hawaii for more than 300 students and chaperones.
Calliope R. Saaga, also known as “Ope,” 40, of Saratoga Springs, Utah, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of wire fraud.
Saaga, doing business as Present America Tours, LLC, contracted with the Willard High School Band Boosters in January 2011 to provide travel arrangements for a June 2012 band trip to Hawaii. Saaga was responsible for booking airfare, lodging, transportation, meals, tours, and travel insurance for more than 300 students and chaperones. The Willard High School Band Boosters wired 12 payments of $30,000 each to Saaga between February 2011 and January 2012.
Saaga booked no reservations as required in the contract. Instead, as he received wire transfers from the band boosters, Saaga used the funds to finance his personal lifestyle, including at least 47 days spent gambling in Las Vegas, Nev.
As a result of Saaga’s diversion of funds, the Willard High School band trip was cancelled and the Willard High School Band Boosters suffered a loss of $360,000.
While he was spending the money of the Willard High School Band Boosters to finance his personal lifestyle, Saaga transmitted e-mails about details of the trip to the Willard High School director of bands, which lulled the band boosters into believing that their trip to Hawaii was on schedule.
Under federal statutes, Saaga 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 Abram McGull II. It was investigated by IRS-Criminal Investigation, the FBI and the Willard, Mo., Police Department.Tioga Man Charged with to Manufacturing MethamphetamineRead the Press Release
The United States Attorney for the Middle District of Pennsylvania announced that a criminal Information was filed yesterday charging Orin Moore, age 41, of Lawrenceville with possession with intent to distribute methamphetamine.
According to U.S. Attorney Peter Smith, on January 6, 2012, the Pennsylvania State Police went to Moore’s residence. They allegedly found over 6 grams of methamphetamine and a facility designed for the manufacturing of methamphetamine. The government also filed a plea agreement which is subject to the approval of the Court.
The investigation was conducted by the Pennsylvania State Police and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Eric Pfisterer.
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 particular case, the maximum penalty for Moore is 20 years in prison, a term of supervised release following imprisonment, and a fine. 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.
Three Sentenced for Roles in Fraudulent Income Tax Return Prep SchemeRead the Press Release
In Waco today, U.S. District Judge Walter S. Smith, Jr., sentenced the owner of A-Kind Bookkeeping and Tax (AKBT) located in Mexia, TX, and her daughter to federal prison for their roles in a fraudulent Income Tax Return preparation scheme announced United States Attorney Robert Pitman and IRS-Criminal Investigation Acting Special Agent in Charge William Cotter.
AKBT owner Patricia “Sissy” Foley was sentenced to two years incarceration followed by three years of supervised release and ordered to pay $842,815 restitution to the IRS after pleading guilty in June to one count of conspiracy to commit tax fraud.
Foley’s daughter, Cassandra Renee Egbert (aka Cassandra Renee Foley), was sentenced to 18 months incarceration followed by three years of supervised release and ordered to jointly pay the same amount of restitution after pleading guilty in June to one count of conspiracy to commit tax fraud.
In addition, Lana Renee Catalena (aka Lana Rene Venable) was sentenced to three years probation and ordered to pay a $4,000 fine after pleading guilty in August to one count of aiding or assisting false or fraudulent tax returns.
A fourth defendant in this case, Joshua Duane Stifle, was scheduled to be sentenced today but instead, he filed a motion to withdraw his guilty plea. In August, Stifle pleaded guilty in August to one count of aiding or assisting false or fraudulent tax returns and one count of making a false statement. Judge Smith has taken his motion under advisement.
According to court records, from January 2007 until April 15, 2010, the defendants were involved in preparing and filing fraudulent Income Tax Returns with the Internal Revenue Service in which they falsely claimed deductions and credits (i.e. head of household, first time home buyer) they knew the filer was not entitled to receive.
“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government and their own clients. Our special agents use their investigative and financial expertise to detect and hold accountable abusive tax return preparers who falsely tell taxpayers they are eligible for tax credits that they are not entitled to receive. These sentences are a reminder that all tax professionals have to respect the law and protect the interests of their clients and the taxpaying public,” stated IRS Criminal Investigation Acting Special Agent in Charge William Cotter.
Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
Tennessee Prisoner Indicted for Anthrax HoaxRead the Press Release
Indictment Alleges That Defendant Mailed Threatening Letter Containing White Powder
To Sumner County District Attorney’s Office in Gallatin, TennesseeJustin Tyler Carter, 28, was indicted by a federal grand jury in Nashville on October 15, 2014 in a 2-count indictment charging him with sending threats through the U.S. Postal Service and conveying false information indicating the use or attempted use of Anthrax, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the indictment, on April 14, 2014, while Carter was a prisoner at Riverbend Maximum Security Institute in Nashville, he prepared and sent a threatening letter to an Assistant District Attorney at the 18th Judicial District of Tennessee. In the letter, Carter threatened to kill the Assistant District Attorney and the public defender that represented him. The letter also contained white powder that Carter claimed was Anthrax.
“Threats involving the use of Anthrax cause significant disruption in the workplace and to government operations,” said U.S. Attorney David Rivera. “Such threats often exhaust public safety resources and cause needless harm to the public. For those who choose to engage in such conduct, the U.S. Attorney’s Office and our law enforcement partners will act swiftly to neutralize the threat, identify those responsible and bring them to justice.”
“This incident caused tremendous disruption to our office and to the people of Sumner County,” said Ray Whitley, Sumner County District Attorney. “Any threat made to any entity of our justice system, with the intent to disrupt or impede the administration of justice, or in retaliation for justice served, will always be met with a coordinated response that will insure those responsible are held accountable for their actions.”If convicted, Carter faces a maximum sentence of five years in prison and a $250,000 fine for each count.
This case was investigated by the FBI. Assistant United States Attorney Van Vincent is representing the government.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Sovereign Citizen Who Retaliated Against Federal Officials by Filing False Liens Sentenced to Seven Years in PrisonRead the Press Release
Follow @SDILNewsAfter nearly two years, the federal prosecution of Cherron Marie Phillips, a/k/a “River Tali,” ended yesterday with Phillips being sentenced to a seven year prison term, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Phillips, a 43 year old Chicago native, was indicted back in November 2012 with knowingly filing false maritime liens against the property of a dozen current and former federal employees, including former United States Attorney Patrick Fitzgerald, in retaliation for their involvement in the investigation and prosecution of her brother, Devon Phillips. A jury in Chicago convicted her on 10 of 12 counts in June of this year.
During the trial, the government presented evidence that from 2006 to 2011, Phillips’s brother, Devon Phillips, had been investigated and prosecuted in the Northern District of Illinois for trafficking cocaine. Cherron Phillips regularly attended his court proceedings and filed documents in the record objecting to the jurisdiction of the court. She filed the liens – each in the amount of $100 billion – in the spring of 2011, several weeks after her brother was sentenced. The existence of the liens wasn’t discovered until later that summer, when one of the victims was attempting a real estate transaction.
During the execution of a federal search warrant, the FBI located the original liens locked inside a safe in Phillips’ master bedroom. The FBI laboratory in Quantico, Virginia was able to identify Phillips’ fingerprints on nine of the twelve liens. After her indictment, Phillips sent a letter to five of the victims, apologizing for what she termed “a serious mistake.”
To avoid the appearance of a conflict of interest, the trial was presided over by the Honorable Michael J. Reagan, now the Chief United States District Judge for the Southern District of Illinois. After accepting the jury’s verdict, Judge Reagan ordered Phillips detained pending sentencing, calling her “a paper terrorist” and citing his concerns for the safety of the community if she were allowed to remain on bond.
In a written memorandum he filed before sentencing, Judge Reagan noted that Phillips subscribes to the “sovereign citizen” ideology – a belief that the government is operating outside its jurisdiction and that by taking certain prescribed steps, citizens can live in this country without abiding by its laws. It was these “misguided beliefs” and “tortured logic,” he wrote, that formed the basis for her crimes. During the sentencing hearing, Phillips read aloud from a prepared statement and claimed the court did not have jurisdiction over her, prompting Judge Reagan to observe that even now, “she simply doesn’t get it.”
Although the United States Sentencing Guidelines recommended a range of 63 to 78 months in prison, Judge Reagan went above the Guidelines, imposing what he acknowledged was a “lengthy” 84-month sentence. “Society cannot tolerate” retaliation against government officials, he explained, citing the need for the sentence to promote respect for the law, provide just punishment, and afford adequate deterrence. Judge Reagan also pointed out that, shortly before trial, Phillips served him and the prosecutor with a lawsuit that claimed they were conspiring with the FBI and others to deprive her of her constitutional rights. Though the suit has yet to be filed, Judge Reagan viewed it as an attempt to obstruct justice and cited it as evidence that Phillips had not learned from her mistakes, noting that it made her prior acts of contrition “ring hollow.”
Federal law mandates that defendants must serve at least 85% of their prison sentences, thus Phillips will likely spend the better part of the next six years behind bars. After that, she will have three years of supervised release, during which time she is specifically prohibited from filing any claims, liens, or lawsuits without first obtaining the court’s permission. As part of her sentence, Phillips was ordered to pay a $1,000 fine and a $1,000 special assessment, as well as restitution to the victims for any expenses they might incur in clearing the liens. On a motion from the United States, the court also signed an order from the bench declaring the liens null and void, releasing them, and ordering that they be afforded “no legal force or effect whatsoever.” That order and a copy of the final judgment will be recorded in the public record in Cook County, Illinois, where the liens were originally filed.
U.S. Attorney Wigginton was grateful for the opportunity to conduct the prosecution and praised the sentence as a victory for justice. “Investigators, prosecutors, judges, courthouse personnel, and other public servants should not have to look over their shoulders for fear of something like this happening to them simply because they were doing their jobs,” Wigginton stated. “This sentence sends a strong message that those who work every day for the administration of justice deserve to do so without fear, threat, intimidation, or reprisal.”
The investigation of this case was conducted by the Chicago field office of the Federal Bureau of Investigation, acting in concert with the United States Marshals Service. The United States is also grateful for the assistance it received from the Office of the Cook County Recorder of Deeds. The case was prosecuted by Assistant U.S. Attorney Nathan D. Stump.
Slidell Man, Casey Thonn, Pleads Guilty to Defrauding<br /> the Deepwater Horizon Economic Claims Center<br /> Out of over $355,000Read the Press Release
The United States Attorney’s Office announced that CASEY THONN (“THONN”), 35, a resident of Slidell, Louisiana, pled guilty today to a two-count Bill of Information which charged THONN with wire fraud in connection with claims THONN filed with the Deepwater Horizon Economic Claims Center (“DHECC”). Specifically, both counts of the Bill of Information charged THONN with violating Title 18, United States Code, Section 1343.
According to court documents, on June 24, 2012, THONN submitted multiple claims with the Seafood Compensation Program administered by the DHECC based on losses THONN allegedly sustained as result of the April 2010 oil spill. Subsequently, in early November 2012, the DHECC notified THONN that he was eligible to receive approximately $1,750.36 for these claims.
In turn, on December 3, 2012, THONN submitted Requests for Reconsideration of his original eligibility notices requesting his compensation be recalculated based on a false Federal tax return THONN provided to the DHECC. In that false submission, THONN claimed he received $156,000 of gross revenue from commercial shrimping sales in 2009. This fraudulent submission increased the defendant’s compensation from $1,750.36 to a total of $357,002.35 for these claims. Finally, in March 2013, THONN received a total of $357,002.35 from the DHECC which was caused by his fraudulent submissions, resulting in an illegal gain of $355,251.99.
THONN faces a maximum term of imprisonment of 20 years, a $ 250,000 fine, and 3 years of supervised release following imprisonment. U.S. District Judge Stanwood R. Duval, Jr. will sentence THONN on January 28, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, flood, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at 866-720-5721, faxing 225-334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4904.This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Matt Coman.
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Sinaloa Cartel Member Found Guilty of Drug Trafficking Conspiracy -- Four Others Plead GuiltyRead the Press Release
CONCORD – Rafael Humberto Celaya Valenzuela, 41, formerly of Sonora, Mexico, was convicted following a jury trial of conspiracy to distribute controlled substances, including cocaine, heroin and methamphetamine, announced United States Attorney John P. Kacavas.
Celaya Valenzuela and his co-conspirators were members of the Sinaloa drug cartel, led by represented the Sinaloa Cartel, led by the notorious drug lord Joaquin Guzman-Loera, also known as “Chapo.” The cartel was seeking new cocaine distribution routes from South America to Europe, Canada and the United States. Beginning in early 2010 and continuing through August 2012, undercover FBI agents posing as members of a European organized crime syndicate met with the cartel representatives. Many of the meetings were audio and video recorded and portions of those recordings were played for the jury. The recordings showed Celaya Valenzuela and several co-conspirators attending meetings in Miami, Boston, Madrid, Spain, and in Portsmouth and New Castle, New Hampshire.
Celaya Valenzuela held himself out as an attorney and financial planner working on behalf of Chapo and the cartel. Manuel Gutierrez Guzman, a co-conspirator and first cousin of Chapo, held himself out as his cousin’s representative in the negotiations. The cartel representatives offered to deliver thousands of kilograms of cocaine by containerized cargo vessels to various ports on the northeastern seaboard of the United States and in Europe. They further represented that the cocaine would come from any number of source countries, including Bolivia, Panama, Belize and Colómbia. The deal was consummated by a face-to-face meeting with Chapo and several telephone calls in which he himself discussed details of the intended shipments.
On July 27, 2012, the conspirators delivered 346 kilograms of cocaine, more than 750 pounds worth millions of dollars, to a port in Algeciras, Spain. The cocaine was shipped via cargo container in boxes that purportedly held glassware. The FBI seized the cocaine, and Celaya Valenzuela, Gutierrez Guzman, Samuel Zazueta Valenzuela and Jesus Palazuelos Soto were arrested by Spanish law enforcement in Madrid on Aug. 7, 2012. The defendants were then extradited to New Hampshire.
Manuel Gutierrez Guzman, Samuel Zazueta Valenzuela and Jesus Palazuelos Soto pleaded guilty before trial. A sentencing hearing for Soto is scheduled for Dec. 22, 2014. Sentencing hearings for Manuel Gutierrez Guzman and Samuel Zazueta Valenzuela are scheduled for Jan. 15, 2015. Celaya Valenzuela’s sentencing is scheduled for Jan. 22, 2015. All the defendants face a mandatory minimum sentence of 10 years and a maximum sentence of life imprisonment.
The cartel’s leader, Joaquin “Chapo” Guzman-Loera, was arrested by Mexican authorities in February 2014. He is under indictment in multiple jurisdictions in the United States, including the District of New Hampshire.
“Today’s guilty verdict, together with the guilty pleas of the defendant’s co-conspirators, demonstrates the Department of Justice’s commitment to disrupting and dismantling international drug trafficking organizations wherever they seek to peddle their poison,” said U.S. Attorney Kacavas. “Whether along our southwest border, in major American cities, or in bucolic New Hampshire, we will use every law enforcement and prosecutorial tool at our disposal to bring international drug traffickers to justice. I want to thank our federal law enforcement partners, especially the FBI agents who went undercover at significant risk to their personal safety, and the Spanish National Police for their assistance in foiling this far-reaching scheme.”
The case was investigated by the Federal Bureau of Investigation, and the Justice Department’s Office of International Affairs provided assistance with the extradition. The case was prosecuted by First Assistant United States Attorney Don Feith.
Sinaloa Cartel Member Found Guilty of Drug Trafficking Conspiracy –Read the Press Release
Four Others Plead Guilty
CONCORD, NEW HAMPSHIRE – CONCORD, N.H. – Rafael Humberto Celaya Valenzuela, 41, formerly of Sonora, Mexico, was convicted following a jury trial of conspiracy to distribute controlled substances, including cocaine, heroin and methamphetamine, announced United States Attorney John P. Kacavas.
Celaya Valenzuela and his co-conspirators were members of the Sinaloa drug cartel, led by represented the Sinaloa Cartel, led by the notorious drug lord Joaquin Guzman-Loera, also known as “Chapo.” The cartel was seeking new cocaine distribution routes from South America to Europe, Canada and the United States. Beginning in early 2010 and continuing through August 2012, undercover FBI agents posing as members of a European organized crime syndicate met with the cartel representatives. Many of the meetings were audio and video recorded and portions of those recordings were played for the jury. The recordings showed Celaya Valenzuela and several co-conspirators attending meetings in Miami, Boston, Madrid, Spain, and in Portsmouth and New Castle, New Hampshire.
Celaya Valenzuela held himself out as an attorney and financial planner working on behalf of Chapo and the cartel. Manuel Gutierrez Guzman, a co-conspirator and first cousin of Chapo, held himself out as his cousin’s representative in the negotiations. The cartel representatives offered to deliver thousands of kilograms of cocaine by containerized cargo vessels to various ports on the northeastern seaboard of the United States and in Europe. They further represented that the cocaine would come from any number of source countries, including Bolivia, Panama, Belize and Colómbia. The deal was consummated by a face-to-face meeting with Chapo and several telephone calls in which he himself discussed details of the intended shipments.
On July 27, 2012, the conspirators delivered 346 kilograms of cocaine, more than 750 pounds worth millions of dollars, to a port in Algeciras, Spain. The cocaine was shipped via cargo container in boxes that purportedly held glassware. The FBI seized the cocaine, and Celaya Valenzuela, Gutierrez Guzman, Samuel Zazueta Valenzuela and Jesus Palazuelos Soto were arrested by Spanish law enforcement in Madrid on Aug. 7, 2012. The defendants were then extradited to New Hampshire.
Manuel Gutierrez Guzman, Samuel Zazueta Valenzuela and Jesus Palazuelos Soto pleaded guilty before trial. A sentencing hearing for Soto is scheduled for Dec. 22, 2014. Sentencing hearings for Manuel Gutierrez Guzman and Samuel Zazueta Valenzuela are scheduled for Jan. 15, 2015. Celaya Valenzuela’s sentencing is scheduled for Jan. 22, 2015. All the defendants face a mandatory minimum sentence of 10 years and a maximum sentence of life imprisonment.
The cartel’s leader, Joaquin “Chapo” Guzman-Loera, was arrested by Mexican authorities in February 2014. He is under indictment in multiple jurisdictions in the United States, including the District of New Hampshire.
“Today’s guilty verdict, together with the guilty pleas of the defendant’s co-conspirators, demonstrates the Department of Justice’s commitment to disrupting and dismantling international drug trafficking organizations wherever they seek to peddle their poison,” said U.S. Attorney Kacavas. “Whether along our southwest border, in major American cities, or in bucolic New Hampshire, we will use every law enforcement and prosecutorial tool at our disposal to bring international drug traffickers to justice. I want to thank our federal law enforcement partners, especially the FBI agents who went undercover at significant risk to their personal safety, and the Spanish National Police for their assistance in foiling this far-reaching scheme.”
The case was investigated by the Federal Bureau of Investigation, and the Justice Department’s Office of International Affairs provided assistance with the extradition. The case was prosecuted by First Assistant United States Attorney Don Feith.
Sex Offender Sentenced to 45 Years for Producing Child PornRead the Press Release
Oklahoma City, Oklahoma – Today, JEREMY DAVID EADES, 28, most recently of Minot, North Dakota, pled guilty to producing child pornography and was sentenced to serve 45 years in federal prison, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
At a hearing today in Oklahoma City, Eades pled guilty to producing child pornography in Pottawatomie County on November 29, 2012, using a 4-year-old child. During the same hearing, United States District Court Judge Robin Cauthron sentenced Eades to serve 45 years in prison, followed by 20 years of supervised release. He will also be required to register as a sex offender the rest of his life. Eades faced a heightened federal penalty due to a 2004 Oklahoma state court conviction for committing lewd acts with a child. Eades also had 2009 state conviction for failure to register as a sex offender. He was apprehended in Minot, North Dakota, on January 13, 2013, where he had traveled shortly after producing the child pornography in Pottawatomie County.
This case is the result of an investigation by ICE Homeland Security Investigations, the Minot North Dakota Police Department, the United States Marshals Service, and the Pottawatomie County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorneys Brandon Hale and Mark Yancey.
Saxton Woman Sentenced for Assisting Gun Store Burglar Avoid ApprehensionRead the Press Release
JOHNSTOWN, Pa. - A resident of Saxton, Pa., has been sentenced in federal court to five years of probation, the first twelve months of which must be satisfied by a condition of home confinement, ordered to pay restitution in the amount of $6399, and ordered to perform 500 hours of community service work on her conviction of being an accessory after the fact, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kelley L. Foster, 24.
According to information presented to the court, on Jan. 28, 2013, Foster assisted Garrett G. Sherlock in his attempt to avoid apprehension by law enforcement authorities for the theft of firearms from Saxton Outdoor Supply, Inc.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police-Bedford Barracks for the investigation leading to the successful prosecution of Foster.
According to Mr. Hickton, Foster was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Rochester Man Charged in Armed Robbery of JewelerRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Clarence Lambert, 22, was charged by criminal complaint with obstructing commerce by robbery, and possessing and brandishing a firearm in furtherance of a crime of violence. The robbery charge carries a maximum sentence of 20 years in prison and a fine of $250,000. The possession and brandishing of a firearm in furtherance of a crime of violence charge carries a minimum sentence of seven years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Robert A. Marangola, who is handling the case, stated that Lambert is charged with participating in the home invasion robbery of a jeweler in the Town of Greece on October 7, 2014. According to the complaint, during the robbery, the jeweler and his wife were pistol whipped and locked in a closet. The perpetrators are accused of stealing in excess of $200,000 in cash, diamonds, and luxury watches. On October 14, 2014, the defendant was observed trying to pawn one of the stolen watches at a local pawn broker in Rochester. Police attempted to stop Lambert who fled and led officers on a foot chase. The defendant was caught hiding in a box in a garage on Frankfurt Street, and was later identified by the jeweler as one of the three armed robbers.The defendant made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson. He is being detained and is due back in court on Tuesday October 21, 2014 at 9:00 a.m.
The criminal complaint is the culmination of an investigation on the part of the Greece Police Department, under the direction of Chief Patrick Phelan, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of James S. Higgins, Special Agent in Charge, New York Field Division, the Federal Bureau of Investigation, the New York State Police, under the direction of Major Scott Crosier, and the Rochester Police Department under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Registered Securities Agent and Financial Advisor Pleads Guilty to Defrauding at Least 24 Victims for More Than $980,000Read the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of SUSAN ELIZABETH WALKER, 50, for abusing her position of trust as a registered securities agent and financial advisor to steal nearly $1 million from at least 24 victims. WALKER, who was charged by information on September 22, 2014, pleaded guilty today before Chief Judge Michael Davis in United States District Court in Minneapolis.
“The theft of investment funds by trusted financial advisors erodes the public’s confidence in the market,” said U.S. Attorney Luger. “Prosecutors in my Office, in collaboration with our state and federal law enforcement partners, will continue to investigate and prosecute aggressively those who abuse their positions of trust to steal from clients, and as in this case, endanger their retirement security.”
According to the defendant’s guilty plea and documents filed in court, from October 2008 until March 2013, WALKER provided financial planning services to several clients through her affiliation with Ameriprise Financial Inc. She was a securities agent registered with the Minnesota Department of Commerce, and a financial advisor registered with the Financial Industry Regulatory Authority (FINRA). WALKER stole from her clients by misusing her access to several victim retirement accounts and causing checks to be drawn from victim accounts and deposited into accounts that she controlled.
According to documents filed in court and statements made on the record in court, WALKER also opened investment brokerage accounts in her own name, and in the names of several victim- clients without their knowledge or authorization, which she used to conceal money stolen from other clients. She caused money to be withdrawn from retirement accounts belonging to clients and deposited in those brokerage accounts, which she took for her own personal use. For example, on September 18, 2009, WALKER caused a check for $75,000 to be issued from a victim account and deposited into an account controlled by WALKER. The defendant used funds stolen as part of the fraud scheme to pay for, among other things, private school tuition and for her own expensive vacation travel.
According to her guilty plea, in addition to stealing from her clients, WALKER also failed to report any of the funds obtained through fraud on her tax returns. The total tax loss on her unreported income is approximately $325,000.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigations, Federal Bureau of Investigation, and the Minnesota Department of Commerce.
Assistant U.S. Attorney Timothy Rank prosecuted the case.
Defendant Information:
SUSAN ELIZABETH WALKER, 50
Plymouth, Minn.
Convicted:
• Mail Fraud, 1 count
• Tax Evasion, 1 count###
Psychic Reader Pleads Guilty to Stealing $16 Million from Oregon ManRead the Press Release
PORTLAND, Ore. - Rachel Lee, 43 of Canby, Oregon, faces up to nine years in federal prison after pleading guilty to a scheme to defraud a victim of approximately $16 million dollars. On October 14, 2014 before U.S. District Court Judge Robert E. Jones, Lee pleaded guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and one count of criminal failure to file personal income taxes.
By her guilty plea, defendant Lee admits that she conspired with at least one other person to make false or misleading promises which caused the victim to part with his money and to provide other personal information to defendant. Based on false statements from the defendant, the victim granted defendant access to and control of his bank accounts. Additionally the defendant told the victim he needed to sell his business holdings in order to pay for taxes due and owing.
Defendant Lee further admitted that she conspired with others to spend the proceeds of the fraud on items including but not limited to the July 27, 2012 purchase of a 2012 Bentley and a 2012 Ferrari.
The defendant is in custody and sentencing is scheduled for January 20, 2015. By the terms of Lee’s plea agreement, she will be sentenced to no less than 87 months and no more than 108 months in prison and ordered to pay full restitution. She has also agreed that assets seized by agents during the course of the investigation will be forfeited and the proceeds provided to the victim to offset restitution. Seized assets in this case include $1.9 million in cash, multiple vehicles, and ten parcels of property.
This case was investigated by the Internal Revenue Service, Criminal Investigations and the Canby Police Department with assistance from the Social Security Administration - Office of Inspector General, Multnomah County Sheriff’s Office, Portland Police Department, and the Oregon Department of Justice. The case is being prosecuted by Assistant U.S. Attorney Donna Maddux and Assistant U.S. Attorney AnneMarie Sgarlata.
Providence Woman to Face Civil Violation Hearing for Allegedly Tossing Powdery Substance in U.S. Attorney’s Office Reception Area Resulting in Providence Fire Department Hazmat ResponseRead the Press Release
PROVIDENCE, R.I. –Coalatta A. Cooper, 55, of Providence, will be summonsed to U.S. District Court in Providence, on a date to be determined by the court, to answer to a civil violation charging her with disturbance on federal property, announced United States Attorney Peter F. Neronha.
Ms. Cooper is being summonsed as a result of an incident inside the lobby area of the U.S. Attorney’s Office on Wednesday, where it is alleged that Ms. Cooper intentionally spread a white powdery substance which led to the evacuation of the U.S. Attorney’s Office and a response by the Providence Fire and Police Departments. Ms. Cooper was immediately detained by a Federal Protection Service contract security guard assigned to the U.S. Attorney’s Office.
Preliminary test results showed the powdery substance to be non-toxic. Ms. Cooper, the Federal Protection Service contract security guard and two Federal Protection Service officers were transported to Rhode Island Hospital as a precautionary measure to ensure they had not been contaminated by a toxic substance.
A preliminary investigation indicates that Ms. Cooper came to the U.S. Attorney’s Office to discuss a personal legal matter.
United States Attorney Peter F. Neronha commented, “I want to thank the Providence Fire Department, including the Hazmat Team, the Providence Police Department and the Federal Protection Service for responding so quickly and professionally, and for assisting our Office on this challenging day.”
Disturbance on federal property, a civil violation, is punishable by a statutory penalty of not more than 30 days in prison, a fine of up to $5,000, or both.
A civil violation is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair hearing in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly. The matter was investigated by the Federal Protection Service, with the assistance of the FBI, the Providence Police Department and the Rhode Island State Police.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Pittsburgh Man Pleads Guilty in Conspiracy to Defraud BanksRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to commit bank fraud, United States Attorney David J. Hickton announced today.
Herbert Butler, Jr., 27, of Pittsburgh, PA, pleaded guilty to one count before United States District Judge Mark Hornak.
In connection with the guilty plea the court was advised that, beginning in 2013, Butler and his co-defendant Eric Bates conspired to steal bank account information belonging to an account holder at Citizens Bank in Pittsburgh, information they used to create accounts at other banks to make multiple withdrawals of cash.
Judge Hornak scheduled sentencing for Feb. 11, 2014 at 2 p.m. The law provides for a maximum total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the successful prosecution of Butler. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Painting Contractor Sentenced to Prison for Paying Bribes to West Haven Housing Authority OfficialRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HARRY P. MICONI, 78, of West Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to six months of imprisonment, followed by two years of supervised release, the first six months of which MICONI must spend in home confinement, for bribing the former executive director of the West Haven Housing Authority.
According to court documents and statements made in court, MICONI owned and operated several painting and contracting businesses in West Haven, including P and K Contractor LLC. Between January 2007 and February 2012, MICONI and his business made more than $800,000 in corrupt payments to Michael Siwek, the executive director of the West Haven Housing Authority, and to Four Star Development Company LLC, an entity personally owned and controlled by Siwek. In return, Siwek directed approximately $2.8 million in business for or with the West Haven Housing Authority and its two affiliated instrumentalities, Meadow Landing and Spring Heights, to MICONI and his businesses. Meadow Landing and Spring Heights are two housing complexes that are owned and managed, in part, by the West Haven Housing Authority.
As part of his sentence, MICONI was ordered to pay $862,563 in restitution.
On November 6, 2013, MICONI pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds.
On September 4, 2014, SIWEK pleaded guilty to bribery and tax evasion charges stemming from his receipt of approximately $1.5 million in bribes from MICONI and others while he was employed by the West Haven Housing Authority. He awaits sentencing.
U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.
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[email protected]Ohio Doctor Pleads Guilty to Two Drug-related FeloniesRead the Press Release
Charleston, W.Va. - United States Attorney Booth Goodwin announced that Robert Timothy Hogan II, D.O., pled guilty today to two drug-related felonies. Hogan, 32, from Coolville, Ohio, faces up to nine years imprisonment when he is sentenced on January 12, 2015.
At the plea hearing, Hogan admitted that he travelled between Ohio and Wood County, West Virginia and that he used his cell phone to facilitate an arrangement in which he wrote prescriptions for controlled substances to an individual who was not his patient and for which there was no legitimate medical purpose in return for receiving half of the pills when the prescriptions were filled. Between January 2013 and February 2014, Hogan wrote more than 160 illegal prescriptions for more than 17,000 pills.
The case was investigated by the West Virginia State Police and the Federal Bureau of Investigation. The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill and heroin trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Nottingham Man Sentenced to 15 Years in Prison for Possessing FirearmRead the Press Release
CONCORD, NEW HAMPSHIRE – Joshua Fields, 32, of Nottingham, was sentenced in United States District Court for the District of New Hampshire to 15 years in prison for being a felon in possession of a firearm, announced United States Attorney John P. Kacavas.
Fields pleaded guilty to the charge on July 3, 2014. Fields admitted that on November 19, 2013, he and others participated in a burglary in Candia, New Hampshire. Among the items stolen during the burglary were six firearms. A few days later, Fields and two accomplices entered the Kittery Trading Post in Kittery, Maine, where they attempted to pawn one of the stolen firearms. As a convicted felon, it was unlawful for Fields to possess a firearm.
United States Attorney John P. Kacavas praised the efforts of federal, state and local law enforcement in this case and said “ensuring that persons who violate the prohibition against possessing firearms are brought to justice is a central mission of my office. We will continue to work closely with our law enforcement partners to enforce federal gun laws.”
This investigation involved the cooperative efforts of federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Candia Police Department, the New Hampshire State Police, the Kittery Police Department, the Rockingham County Attorney’s Office and the District Attorney’s Office in York County, Maine. The case was prosecuted by Assistant U.S. Attorney John J. Farley.Nine Alleged Members of the Jenifer Drug Trafficking Organization Charged by Indictment and Implicated in A 2012 MurderRead the Press Release
82 Kilograms of Cocaine Having a Street Value of $8.2 Million Seized During the Investigation
Baltimore, Maryland - A federal grand jury has indicted nine defendants – seven men and two women – who are alleged to be members of the Jenifer drug trafficking organization (Jenifer DTO) for conspiring to distribute kilograms of cocaine in the Baltimore metropolitan and Woodbridge, Virginia areas. The indictment seeks the forfeiture of $15 million. The indictment was returned on September 3, 2014 and unsealed on October 9, 2014 upon the arrests of defendants.The search warrant affidavit was unsealed today after the execution of 25 search warrants. During the searches, law enforcement recovered 27 kilograms of cocaine with a street value of $3 million; several hundred thousand dollars in cash recovered from the residences of some of the defendants; over $2 million in jewelry, including a 16 carat diamond ring; and luxury vehicles.
“The indictment and affidavit describe how drug organizations transport cocaine to Baltimore and move cash out of the city by relying on a network of suppliers, couriers, distributors, dealers and money launderers, and by using vehicles with hidden compartments,” said U.S. Attorney Rod J. Rosenstein. “The affidavit also explains how law enforcement agents catch drug dealers by using physical and electronic surveillance, wiretaps and cell phone data.”
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.The arrests and searches were the result of coordinated operations by the DEA, IRS – Criminal Investigation, Baltimore City Police Department and Baltimore County Police Department, with the assistance of agents from the U.S. Marshals Service and the Bureau of Alcohol, Tobacco and Firearms.
The indictment charges the following defendants, all of whom are presently in federal custody:
Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 43, of
Bowie, Maryland;
Tyrone Allen, age 42, of Bel Air, Maryland;
Brooke Renee Lunn, a/k/a “Brooke Thomas,” and “Brooke Renee,” age 48, of Baltimore;
Tracy Muse, a/k/a “Kimberly Scott,” age 41, of Pearland, Texas;
Thomas Simmons, age 37, of Hampton, Virginia;
Andre Brewer, age 35, of Elkridge, Maryland;
Michael Williams, age 40, of Baltimore;
Kermit Clark, age 44, of Baltimore; and
William Hegie, age 54, of Baltimore.All of the defendants were arrested last week Thursday, October 9, 2014, except for Michael Williams who turned himself in on Friday, October 10th.
According to an affidavit in support of search warrants, law enforcement started investigating the Jenifer DTO in March 2013. The Jenifer DTO is a Baltimore-based drug trafficking and money-laundering organization with ties to Houston, Texas; Staten Island, New York; and Woodbridge, Virginia.
From September 2012 to September 2014, the Jenifer DTO allegedly obtained kilogram-quantities of cocaine from Houston and distributed the cocaine throughout the Baltimore area and in Woodbridge, Virginia.
"The arrest of these alleged Drug Trafficking Organization (DTO) members emphasizes the proactive work that the Drug Enforcement Administration and our law enforcement partners undertake every day to stop the flow of drugs from entering the Baltimore metropolitan area,” stated Gary Tuggle, Assistant Special Agent in Charge of the DEA Baltimore District Office. “DEA’s investigation of this DTO was a long-term, highly complex effort which used a myriad of investigative techniques to expose this DTO. Additionally, by hitting drug trafficking organizations where it hurts them most and seizing drug proceeds, in this case cash, vehicles and properties, we are crippling their ability to ever return.”
Kedrick Jenifer is the alleged leader of the drug organization. He directed the collection and transportation of money from Baltimore to Houston, and the transportation of cocaine from Houston to Baltimore.
The affidavit alleges that the drug organization concealed money and cocaine in hidden compartments in vehicles that were driven between Baltimore and Houston. The vehicles were sometimes transported on car carriers. Cocaine and cash were stored at the homes of the defendants, their family members, and at a business complex called RCH Plaza on West Franklin Street in Baltimore. Vehicles with hidden compartments were brought to the business complex, where DTO members concealed large amounts of cash or cocaine.
The affidavit alleges that in October of 2009, while traveling from Baltimore to California, Jenifer and Tyrone Allen stopped in Phoenix, Arizona. At the Phoenix airport, police seized $97,020 and three cell phones from Jenifer, and $70,680 and eight cell phones from Allen.
On September 27, 2012, the affidavit alleges, Brooke Lunn and a man named John Moore were arrested near Houston with approximately 30 kilograms of cocaine concealed in a vehicle. Tracy Muse, believed to be a girlfriend of Jenifer, posted bond for the release of Lunn and Moore. Lunn and Moore returned to Maryland.
On October 20, 2012, Moore was fatally shot in the back of the head in Baltimore. According to the affidavit, his murder is believed to be related to the cocaine seizure.
On July 2, 2013, Arkansas Highway Patrol searched a vehicle transported by the Jenifer DTO from Baltimore to Houston by car carrier, while it was being driven back to Baltimore. From a hidden compartment in the rear of the vehicle, 23.8 kilograms of cocaine were seized. Following the seizure, Jenifer allegedly returned to using Lunn to transport cash and cocaine between Baltimore and Houston. Since August 2013, Lunn is believed to have made 30 trips between the cities, transporting cash and cocaine.
In June 2014, agents saw Simmons give Jenifer a black bag in a parking lot in Woodbridge, Virginia. Virginia State Police pulled Simmons over 60 miles away and seized two kilograms of cocaine from a black bag concealed in a hidden compartment in Simmons’ vehicle.
Jenifer owns World Fed Apparel, Inc., a clothing store in Baltimore. Jenifer is also a co-owner of Flavor Factory, LLC, which is believed to own an ice cream franchise in Baltimore.
Jenifer and his companies currently own the following vehicles:
2013 Rolls Royce Ghost valued at $296,000,
2014 Ferrari 458 Italia valued at $271,000,
2014 BMW M6 valued at $113,925,
2015 Ford F-250 truck valued at $56,000,and a 2012 Acura ZDX, a 2010 Honda Crosstour, a 2006 Acura and a 2009 GMC Denali truck. Jenifer kept some high end vehicles at a storage unit in Laurel, Maryland. Brewer allegedly bought a 2014 Mercedes S63 AMG, worth approximately $156,900.
The defendants face a maximum sentence of life in prison for conspiring to distribute and possess with intent to distribute cocaine.
The defendants had their initial appearances in U.S. District Court in Baltimore, Virginia and Texas last week. Hegie and Clark consented to detention. A detention hearing was held on October 14, 2014, in federal court in Baltimore for Lunn and she is detained. A detention hearing in federal court in Baltimore is scheduled for Jenifer, Allen and Brewer on October 16, 2014 at 11:00 a.m., 10:30 a.m. and 1:30 p.m., respectively, and for Muse on October 17 at 10:00 a.m. Williams is detained until arrangements are completed for his release on home detention with electronic monitoring. Simmons is in custody in the Eastern District of Virginia. No date has been set for a hearing for him in Maryland.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation and Baltimore City and County Police Departments for their work in the investigation. Mr. Rosenstein commended the U.S. Marshal Service and Bureau of Alcohol, Tobacco and Firearms for their assistance in the execution of the search and arrest warrants, and the Virginia State Police who assisted with the June 2014 seizure of cocaine.
Mr. Rosenstein thanked Assistant United States Attorneys John W. Sippel, Jr. and Scott A. Lemmon, who are prosecuting the case, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance in the prosecution of this Organized Crime Drug Enforcement Task Force Case.
New York Man Pleads Guilty in Manhattan Federal Court to Six Counts of Illegally Possessing FirearmsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANTONIO OLMEDA of New York, New York, pled guilty today in Manhattan federal court to all six counts charged in the Indictment against him: three counts of being a convicted felon in possession of various firearms, two counts of possessing unregistered machine guns and one count of possessing an unregistered short-barreled shotgun. OLMEDA was arrested in December 2011 in connection with his alleged attempt to shoot two police officers with the New York City Police Department (“NYPD”). He pled guilty today before U.S. Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Bharara said: “Antonio Olmeda, a convicted felon, possessed a vast arsenal, including numerous automatic firearms, multiple machine guns and a sawed-off shotgun. The law prohibited Olmeda from having this kind of firepower at his disposal in light of his felony conviction. Our Office and our law enforcement partners remain committed to keeping deadly weapons out of the hands of convicted criminals.”
As alleged in the Indictment, OLMEDA illegally possessed the following firearms:
- Springfield Armory Ultra Compact .45 caliber semi-automatic handgun
- Taurus 85 Ultralite .38 caliber revolver
- Olympic Arms PCR03 .223 caliber fully-automatic rifle
- Smith & Wesson .40 caliber semi-automatic pistol
- Beretta 92SB Compact 9mm Luger semi-automatic pistol
- Cobray Industries M-11 9mm Luger fully-automatic pistol
- Remington model Mohawk 600 .308 caliber rifle
- Roggio Arsenal model RA-15 rifle receiver/frame
- Interarms rifle
- Three Springfield Armory model 1911A1 .45 caliber pistols
- Sig Sauer model SP 2022 9mm caliber pistol
- Taurus model PT140 Millenium .40 caliber pistol
- Smith & Wesson model 4006 .40 caliber pistol
- Star Bonifacio Echeverria model Firestar 9mm caliber pistol
- Charter Arms model Police Undercover .32 caliber revolver
- Walther model PPK/S .380 caliber pistol
- Vulcan Arms model V15 7.62x39mm machine gun
- Norinco AK-type 7.62x39mm machine gun
- Mossberg model 500A 12 gauge shotgun
OLMEDA, 56, from New York City, pled guilty to three counts of being a convicted felon in possession of various firearms, two counts of possessing unregistered machine guns, and one count of possessing an unregistered short-barreled shotgun. Each of these counts carries a maximum sentence of 10 years in prison. OLMEDA is scheduled to be sentenced by U.S. District Judge Richard M. Berman on January 13, 2015. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
OLMEDA is separately charged by the state in Queens County, New York, with two counts of attempted murder in the first degree, two counts of attempted assault on a police officer with a deadly weapon, one count of criminal possession of a weapon in the second degree, and two counts of attempted assault in the first degree, all arising out of his attempt to shoot two NYPD police officers in Queens, New York, on or about December 2, 2011. The state charges are merely accusations, and OLMEDA is presumed innocent of those state charges unless and until proven guilty.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation’s Manhattan-based Joint Terrorism Task Force, which principally consists of agents and detectives of the FBI and the NYPD; the United States Bureau of Alcohol, Tobacco, Firearms and Explosives; and the United States Marshals Service. Mr. Bharara also thanked the NYPD and the Yonkers Police Department for their ongoing assistance.
The case is being handled jointly by the Office’s Violent and Organized Crime Unit and Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Shane T. Stansbury, Harris M. Fischman, Michael D. Maimin, and John P. Cronan are in charge of the prosecution.
New Orleans Man, Jeremy Shawn Reason, Pleads Guilty to Child Pornography ChargesRead the Press Release
U.S. Attorney Kenneth Polite announced that JEREMY SHAWN REASON, age 34, of New Orleans, Louisiana, pled guilty today for crimes involving the sexual exploitation of children.
According to court documents, REASON knowingly accessed child pornography with the intent to view images depicting the sexual victimization of minors. REASON had been in the custody of the Bureau of Prisons since his previous conviction in 2008 for Possession of Child Pornography. At the time of his arrest in April 2013, REASON was residing at a halfway house.
As a result of REASON’s previous conviction, he faces a mandatory term of imprisonment of not less than 10 years and a maximum of 20 years followed by up to a lifetime term of supervised release, and a $250,000 fine.
Sentencing before U.S. District Judge Stanwood R. Duval, Jr. will be held on January 14, 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security, HSI. Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
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