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Thursday 9 October 2014
Marion Mendiola Sentenced in the District Court of GuamRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant MARION MENDIOLA, was sentenced on October 7, 2014, in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood.
Defendant Mendiola was sentenced to one month in jail and seven months home confinement and placed on three years supervised release for his part in a drug conspiracy case. On July 13, 2012, postal inspectors seized a first class letter containing 60 grams of methamphetamine, which was 98% pure. The agents removed the meth and replaced it with ‘sham’ and delivered the letter to the defendant’s grandmother’s residence where defendant resided.
Agents observed defendant remove the letter from the mailbox and take it into the residence. Shortly thereafter, agents entered the residence. Defendant admitted he knew the letter contained methamphetamine. He told agents his brother Eugene expected the letter. Agents arrested Eugene Mendiola who was sentenced on July 23, 2014 to 31 months in prison and five years supervised release.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Credit for the investigation is given to U.S. Postal Inspectors, Guam Customs and Quarantine and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was handled by Assistant U.S. Attorney Clyde Lemons.Manhattan U.S. Attorney Settles Civil Fraud Claims Against Caremed Pharmaceutical Services for Engaging in Fraudulent ConductRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O’Donnell, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), New York Region, announced today that the United States filed a civil fraud lawsuit in Manhattan federal court against SORKIN’S RX LTD. D/B/A CAREMED PHARMACEUTICAL SERVICES (“CareMed”), a New York-based pharmacy that sells high-cost specialty drugs used to treat conditions that require complex treatment, such as cancer. The United States’ Complaint-in-Intervention alleges that CareMed made false statements to insurance companies to secure prior authorization for the coverage of drugs by, among other things, fabricating Medicare beneficiaries’ medical information and posing as representatives of prescribing physicians’ offices when calling insurers. The Complaint also alleges that CareMed engaged in double-billing by re-stocking unused dosages of Procrit and Rituxan, and then re-selling the drugs and re-billing insurance companies that provide prescription drug coverage to Medicare beneficiaries or Medicaid. In addition, the Complaint alleges that CareMed submitted false claims for payment for automatic refills of Procrit and Rituxan that were not actually received by patients and their doctors. The lawsuit seeks damages and penalties under the False Claims Act.
Simultaneous with the filing of the lawsuit, the United States has settled the claims against CareMed pursuant to a settlement stipulation approved today by U.S. District Judge Denise L. Cote. In the settlement, CareMed admitted that when contacting insurance companies to obtain prior authorization for drug coverage, some representatives of the company had falsely stated that they were calling from the prescribing physicians’ offices and, in some instances, responded to questions seeking the patient’s clinical information based on their understanding of the prior authorization criteria for the particular drug, instead of obtaining the patient’s actual clinical information. CareMed also admitted that it had failed to adequately oversee and train staff responsible for the prior authorization process. Furthermore, CareMed admitted that it had inadequate procedures and auditing processes to ensure that some claims submitted to third-party payors for Rituxan and Procrit were reversed or credited when necessary. CareMed agreed to pay a total of $10 million to resolve the Government’s claims, with $9,534,577 going to the United States and the remaining $465,423 to the State of New York.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, to maximize profits CareMed obtained approvals for the coverage of costly drugs by providing insurers with fake clinical information and posing as physician office staff. CareMed allegedly also re-stocked and re-billed unused medications and stuck the Government – and taxpayers – with the bill for prescription refills that never went to patients or their doctors. By entering into this $10 million settlement, CareMed is being held accountable and paying for its fraud.”
HHS-OIG New York Region Special Agent in Charge Thomas O’Donnell said: “This settlement is another example of the U.S. Department of Health and Human Services, Office of Inspector General’s commitment to holding providers accountable for how they conduct business. HHS-OIG will continue to ensure that the individuals and entities that bill our federal health care programs do so with the utmost integrity.”
As set forth in the complaint filed in Manhattan federal court:
Insurance companies that provide prescription drug coverage to Medicare beneficiaries (“Medicare Part D sponsors”) require health care providers to obtain “prior authorization” for certain drugs, which means that the plan will cover the cost of the drug only if certain criteria are met. The prior authorization process can be time-consuming for physicians and their staff because it may require paperwork and multiple communications with insurance companies. In order to secure business from physicians, CareMed offered to take care of the prior authorization process for them and obtain coverage approvals expeditiously.
CareMed made false statements to Medicare Part D sponsors when seeking prior authorization for drug prescriptions in order to maximize the number of prescriptions it could process and the payments it received each day. Management exerted significant pressure on staff to get prescriptions approved quickly. Because CareMed knew that many insurance companies require the prescribing physician’s office to provide any necessary clinical information directly, staff posed as physician office employees when placing telephone calls to secure prior authorizations. Staff also frequently fabricated the patient’s medical information provided in response to clinical questions posed by insurance companies. They provided insurance companies with false medical information that they knew would meet the prior authorization requirements – which they had learned through online resources, discussions with colleagues, and company training materials – instead of taking the time to obtain the patient’s actual clinical information. For instance, CareMed provided insurance companies with fabricated patient blood test results that staff knew would satisfy the prior authorization requirements for certain drugs.
CareMed took steps to conceal its fraudulent conduct in connection with the prior authorization process. For example, the company installed a caller ID blocking system that prevented its name and location from appearing when outgoing calls were made to insurance companies.
CareMed also engaged in double-billing of Procrit (used to treat anemia caused by chronic kidney disease or chemotherapy) and Rituxan (used to treat non-Hodgkin’s lymphoma). When CareMed learned that a patient had not used medication that was prescribed, it made arrangements to retrieve the medication. CareMed employees sometimes then re-stocked and re-sold the returned medication without reversing the Medicare or Medicaid claim or providing an appropriate credit, and submitted another reimbursement claim for the same medication. As part of its investigation, the Government oversaw an audit that revealed that CareMed received payments from Medicare and Medicaid for amounts of certain dosages of Procrit and Rituxan that far exceeded the amounts the company purchased during the relevant time period.
Furthermore, CareMed sought payment from Medicare Part D sponsors and Medicaid for automatic refills of Procrit and Rituxan that were not actually delivered to and received by patients and their doctors. The pharmacy would generate automatic refills and then submit claims for these refills to Medicare Part D sponsors and Medicaid. However, when patients did not need the refill, CareMed sometimes failed to reverse the previously submitted claim for payment or credit Medicare or Medicaid for amounts already paid. CareMed would then sell the previously billed refill dosage to another customer and seek reimbursement for this sale as well.
In connection with this complaint and settlement, the Government joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.
Mr. Bharara thanked HHS’s Office of the Inspector General for its investigative efforts and extensive assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jeffrey K. Powell is in charge of the case.
Lower Brule Man Sentenced for Simple Assault of A Child Under 16Read the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man charged with Simple Assault of a Child under 16 pled guilty to and was sentenced on October 6, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Marvin Grassrope, Jr., age 19, was sentenced to 18 months of probation and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on or about October 5, 2013, when Grassrope inappropriately touched a juvenile female.
The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Thomas J. Wright.
Logan Businessman Sentenced for Tax Fraud Arising from Arch Coal KickbacksRead the Press Release
Charleston, W.Va. - A Logan County businessman was sentenced today in federal court in Charleston to probation for three years and a $5,000 fine for filing false tax returns, U. S. Attorney Booth Goodwin announced.
Gary Roeher, 52, of Holden, West Virginia, admitted that on his 2010 and 2011 federal tax returns, he illegally claimed business-expense deductions for kickbacks that he paid to an Arch Coal official at the company’s Mountain Laurel Mining Complex in Sharples, West Virginia. Roeher and the Arch Coal official stole money from Arch Coal through a dummy invoice scheme in which Roeher submitted bills for supplies that he had not provided. The Arch Coal official falsely certified that the supplies had been received, which prompted the accounting department for Arch Coal to pay the false bills. Roeher paid the Arch Coal Official kickbacks from the payments received. Roeher then deducted the kickback payments as legitimate business expenses on his 2010 and 2011 tax returns.
Between 2010 and 2011, Roeher paid the Arch Coal official more than $35,000 in kickbacks. Roeher has agreed to forfeit that amount as part of his plea agreement.
Roeher also fraudulently deducted approximately $43,000 used to install a pool at his home, claiming on his tax returns that it was a legitimate business expense.
These charges stem from an investigation conducted by the FBI, IRS Criminal Investigation, United States Postal Inspection Service, and the West Virginia State Police. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution.
Local Pastor Pleads Guilty to Embezzling over $900,000 from Community CenterRead the Press Release
TULSA, Okla. — Willard Lenord Jones, 63, of Tulsa, church pastor and former Executive Director of the Greater Cornerstone Community Development Project, pleaded guilty today before United States District Judge John E. Dowdell to three counts of wire fraud and one count of subscribing to a false tax return, announced U.S. Attorney Danny C. Williams Sr., for the Northern District of Oklahoma. Jones was charged by information on August 13, 2014, and sentencing is scheduled for January 12, 2015 at 10:00 a.m.
At the change of plea hearing, Jones admitted that, from September 2007 to June 2013, he misappropriated approximately $933,000 from the Greater Cornerstone Community Development Project, a non-profit organization formed to raise money for the building and operation of a community center in South Haven, a neighborhood in West Tulsa.
As the Executive Director, Jones solicited monetary contributions from donors, including foundations, corporations, churches and individuals, to fund the development project. As part of the scheme, Jones fraudulently transferred funds from community center bank accounts to church bank accounts and then transferred those funds into personal bank accounts. Jones admitted using the money on personal expenses and luxury items, including, hotels, gambling, liquor, automobiles, and jewelry. Pursuant to his plea agreement, Jones will forfeit his residence, a Rolex watch and fur coat. A criminal forfeiture money judgment will also be entered against him in the amount of $933,507.80.
At the time of sentencing, Jones faces the statutory maximum penalty of 20 years in prison for each count of wire fraud and three years for subscribing to a false tax return. Jones would also forfeit his residence and luxury items and face a criminal forfeiture money judgment.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations. United States Attorney Danny C. Williams Sr., and Assistant U.S. Attorneys Joseph F. Wilson, Kevin C. Leitch, and Catherine Depew are prosecuting on behalf of the United States.
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
On October 9, 2014, Inocencio Segura Jimenez, 32, of Lincoln, was sentenced to five years and ten months (70 months) in prison for possession with intent to distribute 50 grams or more of methamphetamine. Following the prison term, Segura will serve three years on supervised release.
On September 5, 2013, a search warrant was served by the Lincoln/Lancaster County Drug Task Force at Segura’s Lincoln residence. Segura was present at the time the warrant was served, and he was found in possession of a roll of black electrical tape. That black electrical tape matched tape which had been used to seal a plastic container found buried in the backyard of the residence. That container was opened and found to contain 176.43 grams of methamphetamine with a purity of greater than 95%. Information provided to law enforcement indicated that Segura intended to distribute that methamphetamine to other persons in the Lincoln area.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lakeland Man Sentenced to 15 Years in Federal Prison for Unlawfully Possessing A FirearmRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Jerman Antwon Green (29, Lakeland) to 15 years in federal prison for being a felon in possession of a firearm. He pleaded guilty on June 19, 2014.
According to court documents, on December 20, 2013, Green entered a pawn shop in Lakeland and asked to see a firearm. Green then fled the store with the firearm in his hand. Detectives from the Lakeland Police Department witnessed Green fleeing from the store and ordered him to stop. Green eventually complied and was apprehended with the firearm. Prior to this incident, Green had been convicted of multiple felony offenses, including drug and gun offenses, and therefore was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in communities.
Lab Manager Pleads Guilty to Tampering with Water SamplesRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced that John W. Shelton pled guilty today in federal court in Beckley to conspiring to violate the Clean Water Act. Shelton, 47, of Daniels, West Virginia, was employed by Appalachian Laboratories in Daniels as a field technician and manager. Appalachian Laboratories performed water sampling and analysis for coal mining operations to ensure that discharges of pollutants into public waterways were within permitted limits.
Shelton admitted that he and other employees tampered with water samples to make them appear to be within permissible levels. Shelton admitted that they diluted samples by adding distilled water, and substituted water samples from the “honeyhole,” designated as such because the samples were always within permissible limits. Each time samples were diluted or water was substituted, Shelton allowed excessive pollutants to be discharged from mining operations into adjacent creeks and rivers.
Shelton also admitted that from 2008-2013, he and other Appalachian Laboratories employees failed to place samples on ice as required by law, and instead kept them in their trucks all day, compromising the integrity of the samples. To avoid detection by WVDEP, Shelton and other employees placed ice in their coolers on known inspection days to make it appear as though this was their regular practice.
Shelton faces up to 5 years imprisonment and a fine of $250,000 when he is sentenced on February 26, 2015.
The investigation is being conducted jointly by the Federal Bureau of Investigation and the Environmental Protection Agency’s Criminal Investigation Division. Assistant United States Attorneys Blaire L. Malkin and Larry R. Ellis are responsible for the prosecution.
Kimberling City Physician Pleads Guilty to Failing to File Tax ReturnsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kimberling City, Mo., man who worked as an emergency room physician pleaded guilty in federal court today to failing to file tax returns despite earning hundreds of thousands of dollars in income each year.
Phillip Edward Psaltis, 64, of Kimberling City, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with two counts of failing to file an income tax return.
Psaltis worked as an emergency room physician at Lawton Indian Hospital in Lawton, Okla., in 2011 and at Claremore Indian Hospital in Claremore, Okla., in 2010. Psaltis worked as an emergency room physician at Barton County Memorial Hospital in Lamar, Mo., from 2006 to 2009 and at Pike County Memorial Hospital in Louisiana, Mo. in 2008 and 2009.
By pleading guilty today, Psaltis admitted that he has failed to file federal income tax returns since 2002. The total tax loss from Psaltis’s unreported income during those years is $1,118,824.
The two specific charges to which Psaltis pleaded guilty today relate to his failure to file a federal tax return for 2009, when he earned approximately $450,664, and for 2010, when he earned approximately $433,339.
Psaltis admitted that he failed to file federal income tax returns for 2009, 2010 and 2011. Psaltis’s unreported income during those years totaled $1,204,786 and the total tax loss was $377,022. According to today’s plea agreement, Psaltis also owes $551,434 in outstanding federal taxes for the years 2002 through 2008. Because Psaltis did not file his 2012 tax return, the plea agreement says, it is estimated that he will owe approximately $128,109 in tax liability for 2012.
In addition to the federal taxes owed, the plea agreement also says that Psaltis owes $62,259 in Missouri and Oklahoma state income tax for the years 2009, 2010 and 2011. Psaltis’s medical license was suspended three times – on Dec. 14, 2009, on July 16, 20102, and on June 11, 2013 – for delinquency of Missouri state taxes or failure to file state income tax returns.
Under federal statutes, Psaltis is subject to a sentence of up to two years in federal prison without parole, plus a fine up to $200,000 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 Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Jury Finds Men Guilty of Child Exploitation EnterpriseRead the Press Release
MISSOULA - On October 9, 2014 two men were found guilty of participating in a child exploitation enterprise and a conspiracy to advertise child pornography. Joshua Peterson, 45, of Prescott, Arizona, and Steven Grovo, 35, of Shirley, Massachusetts, were accused by a federal grand jury in Montana of promoting the sexual exploitation of children using an international online bulletin board where members advertised, distributed, viewed and received images depicting child pornography. Both men are being detained pending their January 22, 2015 sentencing in Missoula.
The government presented evidence that In November 2009, an early participant in the conspiracy designed and created an online bulletin board which allowed the board members to share in their common interest in exchanging files on line which contained child pornography and non-child pornography images. As the conspiracy progressed, additional members contributed to the design and operations of the board. Between November 6, 2009, through March 19, 2012, Peterson and Grovo and the others used the online bulletin board to share pictures and videos of children engaged in sexually explicit conduct. During that same time the participants agreed to use the online bulletin board to publish or print notices or advertisements soliciting additional images of child pornography which they would then share and broadcast on the internet.
The lengthy and wide ranging investigation, referred to as Operation Kingdom Conqueror, is an ongoing cooperative effort between the Federal Bureau of Investigation, Montana Department of Criminal Investigations, the Helena and Polson Police Departments, the United States Department of Justice - Child Exploitation and Obscenity Section, Homeland Security Investigations, the Montana Internet Crimes Against Children Task Force, and the States of Jersey Police Department, Isle of Jersey, near the UK.
The internet exchange of child pornography creates a market for the victimization of children. That market destroys lives and robs children of their innocence. It is a grotesque crime that must be dealt with in a manner that fully reflects the tragedy it causes its victims. This prosecution is a product of diligent work by the very dedicated, skilled and highly trained agents of Operation Kingdom Conqueror. As the work of this team of professionals-from the Federal Bureau of Investigation, State of Montana DCI, the Child Exploitation and Obscenity Section, Homeland Security, Polson Police Department and the Helena Police Department-continues, there will be more cases and more defendants indicted from all across the United States. These agents, and this office, will never relax our commitment to the protection of children." United States Attorney for the District of Montana, Michael W. Cotter.
Assistant U.S. Attorney Cyndee L. Peterson and Maureen C. Cain with the U.S. Department of Justice, Child Exploitation & Obscenity Section, prosecuted Peterson and Grovo on behalf of the United States.
This case was initiated under the Department of Justice's Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state, and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task (or the MT ICAC). The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Jury Finds McLaughlin Man Guilty of Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Brett Roach, age 27, of McLaughlin, South Dakota, was convicted of Assault Resulting in Serious Bodily Injury, following a two-day jury trial in Pierre. The guilty verdict was returned on October 8, 2014.
The charge carries a 10 year mandatory minimum, up to life, in custody, and/or a $250,000 fine, as well as 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Roach was indicted by a federal grand jury on June 12, 2013.
The conviction stems from an assault which occurred on May 22, 2013, when Roach’s 11-month old stepdaughter was brought to the Mobridge Regional Hospital. A CT scan revealed that the child was bleeding inside her skull and had sustained 3 skull fractures. The 11-month old victim was flown to Sanford USD Medical Center in Sioux Falls, where she underwent emergency treatment for her head injuries.
During the investigation, Roach admitted to the Federal Bureau of Investigation that because the child’s crying had woken him up, he threw the child from a bed onto the hard floor. At trial, Roach claimed he had made this story up and the child had been injured in a simple fall. Medical experts at trial told the jury that a simple fall would not explain the victim’s life threatening serious head injuries.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
A sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
Joplin Attorney Sentenced for Stealing $576,000 from ClientsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., attorney was sentenced in federal court today for stealing more than $576,000 from his clients.
Daniel D. Whitworth, 59, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to two years in federal prison without parole. The court also ordered Whitworth to pay $404,957 in additional restitution to his former clients and $72,810 to the government. Whitworth has surrendered his license to practice law in any and all jurisdictions.
Whitworth was the owner of a law practice in Joplin and practiced law for more than 33 years. On March 31, 2014, Whitworth pleaded guilty to wire fraud, money laundering and false statements on tax returns. Whitworth admitted that he embezzled approximately $576,739 from 22 of his legal clients between 2004 and Oct. 18, 2013. Whitworth spent these embezzled funds on personal loans and items unrelated to the legal matters of his clients.
Law enforcement officers investigated complaints made to the Office of Chief Disciplinary Counsel of the Missouri Supreme Court about Whitworth’s theft of client money. Investigators determined from bank records and speaking with former clients that Whitworth repeatedly took money from and for clients. He claimed that money would be used to resolve the matter that the client had pending before the court. In many instances, Whitworth deposited the client’s money either into his attorney trust account or into his personal bank accounts. After depositing his client’s money, Whitworth would then withdraw money and pay for personal expenses and items that were entirely unrelated to his client’s legal case.
According to court documents, Whitworth’s criminal conduct occurred over many years, beginning in 2006 when he entered a partnership to own a bar in Joplin and continuing for at least seven years. He embezzled money from at least 26 different clients, according to court documents, including the estates and trusts of the deceased and their families, individuals who were injured and seeking compensation through the courts and other criminal defendants seeking representation within the criminal justice system.
Whitworth also admitted that he failed to report the embezzled funds on his personal income tax returns for the years 2009-2011, which the plea agreement says totaled $448,835. Whitworth did not file an income tax return for 2012, according to the plea agreement, and therefore did not report the embezzled funds during this year as well.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Missouri Highway Patrol and IRS-Criminal Investigation.
Jimmy Hsieh, William Perez and Pauline Perez Sentenced TodayRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants JIMMY HSIEH, WILLIAM PEREZ AND PAULINE PEREZ who were convicted in a criminal conspiracy to conduct an illegal gambling business at the former MGM Spa in Tamuning, were sentenced on October 8, 2014. Chief Judge Tydingco-Gatewood imposed a two year prison sentence for JIMMY HSIEH who had pled guilty to the gambling conspiracy and money laundering. A $423,640.47 money judgment of forfeiture was also entered against HSIEH. HSIEH agreed to forfeit $178,113.45 from personal accounts and that three of his condos are subject to possible forfeiture proceedings, and was also ordered to pay a $100 special assessment. HSIEH's personal accounts and an MGM corporate account had already been previously seized by Internal Revenue Service - Criminal Investigation agents with assistance from the FBI.
WILLIAM PEREZ, the manager and supervisor of the MGM poker operation in 2010, received a one year sentence (six months prison term and six months home confinement) and three years supervised release for conspiring to operate the illegal gambling business, by operating baccarat and poker games at the former MGM Spa. PEREZ also was ordered to pay a $100 special assessment and $24,000 fine.
PAULINE PEREZ, who had pled guilty to participating in the gambling business, and substantially assisted the government in the prosecution of the case, received one year probation and community service.
U.S. Attorney Alicia A.G. Limtiaco stated, “These sentences and the federal forfeiture of almost half a million dollars reflect the U.S. Attorney’s Office and Department of Justice’s commitment to prosecute those white-collar crimes, including illegal gambling businesses, money laundering and structuring offenses, where individuals evade currency transaction reporting requirements.”
The Criminal Investigation Division of the IRS, FBI and Naval Criminal Investigative Service supported the investigation and prosecution of this illegal gambling operation and related offenses. Assistant U.S. Attorney Karon Johnson (retired) was responsible for the prosecution of this case and Assistant U.S. Attorney B. Alcantara represented the U.S. Attorney's Office at the sentencing. One more defendant, JENNIE PAU, will be sentenced on Thursday, October 16, 2014, at the District Court of Guam.
A warrant of arrest has been issued for the fifth co-defendant, WAI KAM HO, who is currently a fugitive as he never returned to Guam as ordered by the Court, and will be prosecuted to the full extent of the law when found. Anyone with information related to WAI KAM HO also known as KEN HO is encouraged to contact the FBI at (671) 472-7332.Iowa Man Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced October 1, 2014, to more than five years in federal prison.
Ivan Lopez-Castelan, 32, from Iowa, received the prison term after a June 30, 2014, guilty plea to conspiring to distribute methamphetamine.
At the guilty plea, Lopez-Castelan admitted he was involved in the distribution of at least 1500 grams of mixed methamphetamine which contained 500 grams or more of actual (pure) methamphetamine from approximately 2011 through February, 2014. On February 7, 2014, law enforcement conducted a controlled purchase of approximately one pound of methamphetamine from Lopez-Castelan in Orange City, Iowa, for $28,000.
Lopez-Castelan was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Lopez-Castelan was sentenced to 61 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system. Lopez-Castelan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Clay County Sheriff’s Office assisted by the Iowa Great Lakes Drug Task Force, Iowa Division of Narcotics Enforcement, Iowa Division of Intelligence, Orange City Police Department, and the Tri-State Drug Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4014.
Iowa Man Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced October 2, 2014, to four years in federal prison.
Jeremy Rabenberg, 40, from Hartley, Iowa, received the prison term after a June 10, 2014, guilty plea to conspiring to distribute methamphetamine.
At the guilty plea, Rabenberg admitted he was involved in the distribution of at least 1500 grams of mixed methamphetamine which contained 500 grams or more of actual (pure) methamphetamine from approximately 2013 through February 2014. On January 29, 2014, during the early morning hours, Spencer Police Officers responded to a call and located Rabenberg asleep in his vehicle (with engine running) parked outside a bar. Officers seized about $5,000 in cash and about two grams of methamphetamine from the center console of the vehicle and a .380 caliber Berretta handgun with seven rounds in the loaded magazine from between the front passenger seat and the center console. Later on the same date, law enforcement executed a search warrant at Rabenberg’s residence. Law enforcement seized approximately 354.58 grams of actual (pure) methamphetamine, $7,200 in U.S. currency and a number of firearms from Rabenberg’s bedroom.
Rabenberg was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Rabenberg was sentenced to 48 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Rabenberg is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Clay County Sheriff’s Office assisted by the Iowa Great Lakes Drug Task Force, Iowa Division of Narcotics Enforcement, Iowa Division of Intelligence, Orange City Police Department, and the Tri-State Drug Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4025.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on October 9, 2014, and entering pleas of Not Guilty were:
ADRIAN RALPH KRELL, a 43-year-old resident of Billings, appeared on charges of drug user in possession of a firearm; possession with intent to distribute methamphetamine, and possession of firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, KRELL, faces 20 years in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations and the Drug Enforcement Administration. PACER Case Reference: 13-96
CHRISTOPHER RALPH MARQUIS, a 67-year-old resident of St. George, Utah, appeared on charges of possession of child pornography. If convicted of the charge contained in the indictment, MARQUIS, faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-98
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Honduran Man, Miguel Villatoro-portillo, Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MIGUEL VILLATORO-PORTILLO, age 34, a citizen of Honduras, was sentenced today after having previously pled guilty to a one-count indictment for illegal reentry of a removed alien.
U.S. District Judge Nanette Jolivette Brown sentenced VILLATORO-PORTILLO to 12 months imprisonment followed by two years of supervised release, and a $100 special assessment.
According to court records, on or about June 12, 2014, MIGUEL VILLATORO-PORTILLO was found in the United States after having been officially deported and removed on or about January 9, 2009.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
Honduran Man, Jose Luis Mayorga-lemus, Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE LUIS MAYORGA-LEMUS, age 24, a citizen of Honduras, pled guilty yesterday to a one-count indictment for illegal reentry of a removed alien.
According to the indictment, on or about August 28, 2014, MAYORGA-LEMUS was found in the United States after having been officially deported and removed on or about August 3, 2011.
MAYORGA-LEMUS faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing for January 7, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
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Franklin, N.C. Man Sentenced to 21 Months in Prison for Filing A False Tax ReturnRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced Isaac H. Birch today to 21 months in prison followed by one year of supervised release for filing a false tax return, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Birch was also ordered to pay $480,047 as restitution to the United States Treasury.
Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service join U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Birch, 38, of Franklin, N.C. filed false tax returns for tax years 2007-2009, claiming he was entitled to hundreds of thousands of dollars in tax refunds. Court records indicate that Birch filed a false 2007 income tax return that contained fraudulent information, including other income in the amount of $735,425 and federal income tax withheld in the amount of $735,424. According to information in court documents and court proceedings, Birch filed these fraudulent returns after attending a tax return preparation seminar in Albany, N.Y., which taught participants how to file large refund claims against the Treasury Department using fraudulent methods. Court records show that Birch’s fraudulent action caused the Treasury Department to issue fraudulent tax refund checks in the amount of $480,047. Birch pleaded guilty in August 2013 to one count of filing a false tax return.
Birch was released on bond and will be ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation of the case was handled by IRS and USPIS. The prosecution of the case is handled by Assistant U.S. Attorney Don Gast of U.S. Attorney’s Office in Asheville.
Franklin County Resident Sentenced on Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn October 7, 2014, April D. Rollinson, of Murphysboro, Ill., was sentenced for her involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Rollinson, who had previously pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 57 months in federal prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between 2012 and June 2013, in Perry, Jackson, Randolph, Franklin, and Williamson Counties. Evidence at the plea and sentencing hearings established that Rollinson obtained pseudoephedrine to be used in the manufacture of methamphetamine. Co-defendants Brandon K. Loftis and Samantha J. Plumlee have previously been sentenced to prison terms of 97 and 70 months, respectively, for their role in the methamphetamine conspiracy.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Illinois State Police/Southern Illinois Drug Task Force, Murphysboro Police Department, DuQuoin Police Department, Pinckneyville Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Four Sentenced for Cocaine TraffickingRead the Press Release
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(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Four Northern West Virginia residents were sentenced for cocaine related offenses, United States Attorney William J. Ihlenfeld, II, announced today.
Kenneth An'bon Wang, 28, of Martinsburg, West Virginia was sentenced to 41 months in prison for distributing crack cocaine. Wang pled guilty in March 2014 after an investigation led by the Eastern Panhandle Drug & Violent Crime Task Force.
Troy Aaron Wilt, 31, was sentenced to 10 months in prison for distributing cocaine. Paul Harland Ellis, 35, was sentenced to five years of probation for money laundering transactions involving roughly $1,500.00 in proceeds from cocaine sales. Wilt and Ellis, both of Keyser, West Virginia, pled guilty after an investigation led by the Potomac Highlands Drug & Violent Crime Task Force.
Colleen Eugene Lowe, 49, of Martinsburg, was sentenced to five years of probation for possession with intent to distribute crack cocaine. Lowe pled guilty in July 2014 after an investigation led by the Martinsburg Police Department.
Assistant U.S. Attorney Jarod Douglas prosecuted the cases on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Fort Worth Chiropractor Faces up to Five Years in Federal Prison in Heath Care Fraud CaseRead the Press Release
FORT WORTH, Texas — The owner/operator of a chiropractic clinic in Fort Worth, Texas, pleaded guilty this afternoon to a federal felony offense stemming from her submission of approximately $718,000 in false reimbursement claims to Medicare and Medicaid, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Melva Mitchell, 35, of Fort Worth, a licensed chiropractor, pleaded guilty before U.S. District Judge Reed C. O’Connor to one count of making false statements relating to health care matters. Mitchell operated Best Choice Chiropractic and Wellness Center on Oakland Boulevard in Fort Worth. She faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. She will remain on bond pending sentencing, which is set for January 26, 2015, before Judge O’Connor.
According to documents filed in the case, Mitchell submitted claims for reimbursement to Medicare and Medicaid for chiropractic services that were not performed. She obtained the Medicare and Medicaid provider information for other individuals who were licensed Occupational Therapists, and used those persons’ provider information to obtain payments from Medicare and Medicaid for occupational therapy services that were not provided or were not provided by requisitely licensed individuals. Mitchell paid one of the individuals whose provider information she used a portion of the Medicare and Medicaid reimbursements she received.
As one example of her false statements, Mitchell submitted claims to Medicare and Medicaid indicating that she performed 25 separate chiropractic manipulations in her office from March 8, 2011 to March 10, 2011. These claims were false and fraudulent because she was on vacation in Puerto Rico at the time. For these 25 chiropractic manipulations, Mitchell submitted claims to Medicare totaling $1,750 and was paid $827.80. During this same time, Mitchell submitted claims to Medicaid totaling $4,515 and was paid $387.34.
The U.S. Department of Health and Human Services – Office of Inspector General, FBI, and Texas Attorney General’s Medicaid Fraud Control Unit are investigating the case. Special Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
Former Putnam Resident Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DARRICK COLLETTE, 33, of Thompson, formerly of Putnam, waived his right to indictment and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of receipt and distribution of child pornography.
According to court documents and statements made in court, in March 19, 2013, an FBI special agent logged onto a publicly available Internet file sharing network and downloaded images and videos of child pornography from a computer connected to the network with an Internet Protocol (IP) address assigned to COLLETTE’s residence while he was living in Putnam. During a search of the residence on June 13, 2013, law enforcement officers seized computers and multiple external hard drives. COLLETTE was arrested at that time after he admitted that he had been downloading and trading child pornography over the Internet for more than 10 years.
Forensic analysis of COLLETTE’s computers and hard drives revealed more than 600 image files and videos of child pornography.
COLLETTE faces a maximum term of imprisonment of 20 years and a fine of up to $250,000. A sentencing date is not yet scheduled. He has been released on a bond and electronic monitoring since his arrest.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Connecticut State Police and Putnam Police Department assisted in the search of COLLETTE’s residence.
The case is being 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]Former Medical Technician Pleads Guilty to Accepting Bribes in Exchange for Falsifying Urinalysis Drug TestsRead the Press Release
TULSA, Okla. — William Ray Allen, 33, of Tulsa, a former medical technician responsible for collecting urine specimens for random urinalysis drug testing, pleaded guilty before Magistrate Judge T. Lane Wilson today to accepting bribes in exchange for submitting fraudulent urinalysis drug tests and to submitting a falsified certification, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
On September 4, 2014, a Federal grand jury indicted Allen with four counts of honest services mail fraud and three counts of accepting a bribe. Sentencing has been scheduled for January 6, 2015 at 10:00 a.m.
At the change of plea hearing, Allen admitted that, on August 8, 2014, while employed by 12 & 12, Incorporated, he warned those selected for court ordered random drug testing that they were going to be tested. He also substituted his own urine or the urine of others for drug testing and submitted falsified certifications with the substituted urine for analysis. Allen admitted to knowingly shipping the fraudulent substituted urine samples via Federal Express to the U.S. Probation Drug Laboratory. 12 & 12, Incorporated is a drug treatment facility contracted by the U.S. Probation Office to provide court ordered drug testing and treatment services to persons under supervision.At the time of sentencing, Allen faces the maximum penalty of 20 years in prison and a $250,000 fine for honest services mail fraud; and, not more than 15 years in prison and a $250,000 for accepting a bribe.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Joel-lyn A. McCormick is prosecuting on behalf of the United States.
Former MPD Officer Sentenced to Seven Years in Prison for Pandering A Minor and Possession of Child Pornography-Defendant Admitted to Offenses Involving Three Teenage Girls-Read the Press Release
WASHINGTON – Linwood Barnhill, 48, a former officer with the Metropolitan Police Department (MPD), was sentenced today to seven years in prison after earlier pleading guilty to two counts of pandering a minor and one count of possession of child pornography.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department.
Barnhill, who was assigned to the Seventh Police District, pled guilty in June 2014 in the U.S. District Court for the District of Columbia. He has resigned from the department. His plea agreement, which was subject to the Court’s approval, called for a seven-year prison sentence.
The Honorable Rosemary M. Collyer accepted the plea and sentenced Barnhill today. Upon completion of his prison term, Barnhill will be placed on 10 years of supervised release. He also will be required to register as a sex offender for the rest of his life.
According to the government's evidence, on Dec. 3, 2013, officers with the MPD’s Youth Investigations Division located a missing 16-year-old girl at Barnhill’s residence in Washington, D.C. Over the course of the previous two weeks, the government’s evidence showed, Barnhill had begun the process of cultivating the juvenile to engage in prostitution, including taking clothed and unclothed photographs of her. During this time-frame, he stated that he was going to send the photos to a man who was interested in “an appointment” with her. Barnhill further explained that he was going to set up a “date” for her to engage in sexual acts with this man, who would pay her $80. The juvenile was to provide Barnhill with $20 after the completion of the “date.” Barnhill arranged to have the juvenile’s hair done in preparation for the date. The 16-year-old never actually engaged in prostitution for the defendant.
During the course of the ensuing investigation, MPD officers and members of the FBI’s Child Exploitation Task Force learned that the defendant was involved in prostitution-related activities with other adult and juvenile females, including a 15-year-old.
According to the government’s evidence, the 15-year-old met Barnhill in September 2013, when he pulled up to her at a bus stop and asked if she was interested in modeling for him. The 15-year-old agreed to model for the defendant and went back to his apartment to “take modeling pictures.” Barnhill, who asked her to escort for him, took a series of clothed and unclothed photographs of the girl. Later that night, he contacted her by cell phone and told her that he had somebody that wanted to meet her for a “date.” Barnhill collected the money and paid the 15-year-old a portion of that money once she was finished with the “date.”
In addition, during the course of the investigation, law enforcement identified a 17-year-old female who also met the defendant in October 2013 when he pulled up to her at a bus stop in Washington, D.C. and asked her if she wanted to model. Sometime later, the 17-year-old went to Barnhill’s residence. He brought her into his bedroom, where he took multiple photographs of her, clothed and unclothed. After taking the photos, Barnhill asked the 17-year-old to perform oral sex on him. While she performed oral sex, Barnhill held his cellular phone and video-recorded the session. That video was recovered from a cell phone seized from the defendant’s residence pursuant to a search warrant.
Barnhill has been in custody since his arrest in December 2013.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe and Chief Lanier commended the work of the MPD detectives and Special Agents of the FBI’s Child Exploitation Task Force. They also expressed appreciation for the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
14-227Former Health Care Center Nursing Supervisor Pleads Guilty to Selling Fentanyl and other Pain KillersRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul announced today that Catherine Vitello, 41, of Elma, N.Y., pleaded guilty to possession with intent to distribute and distribution of hydrocodone and fentanyl before U.S. District Judge Richard J. Arcara. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
“As this case demonstrates, drug dealers come from all walks of life, and don’t always just stand on street corners,” said U.S. Attorney Hochul. “Here, the defendant abused her position as the head of a nursing program to obtain highly addictive drugs, and then distribute them illegally. Let all who hold such positions be aware they are not immune from prosecution if they also violate the law.”
Assistant U.S. Attorney John M. Alsup, who is handling the case, stated that the defendant was the Director of Nursing at the St. Catherine Laboure Health Care Center in Buffalo. Vitello sold un-used prescription drugs from her office. These drugs were prescribed for patients but were no longer needed for various reasons, including the death of the patient in some cases. The prescription narcotics included hydrocodone and fentanyl. On at least two separate occasions in October 2013, the defendant sold hydrocodone and fentanyl to a confidential source working with the Drug Enforcement Administration.
The plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Office, the Lackawanna Police Department, under the direction of Chief James Michel, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
Sentencing is scheduled for January 23, 2015 at 1:00 p.m. before Judge Arcara.- Former HPD Officer Convicted in Drug Conspiracy
Former Corrections Officer Convicted of Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found former Jacksonville Sheriff’s Office (JSO) Corrections Officer Leon Perry Brooks, Sr. (40, Jacksonville) guilty of four counts of possession of child pornography. He faces a maximum penalty of 10 years in federal prison on each count. Brooks was indicted on December 18, 2013. His sentencing hearing has not yet been scheduled.
According to testimony and evidence presented at trial, in January 2013, a JSO detective on the Internet Crimes Against Children Task Force was able to download two child pornography videos from an IP address registered to Brooks. A search warrant was subsequently executed at his home, which resulted in the seizure of several computers. Two of these computers contained multiple videos of minors engaged in sexually explicit conduct.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, in conjunction with the Jacksonville Sheriff’s Office’s Internet Crimes Against Children Task Force. It is being prosecuted by Assistant United States Attorney Diidri W. Robinson.
It is another case 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Florida Businessman Sentenced to Nine Years in Prison for Conspiring to Defraud InvestorsRead the Press Release
Over 100 Investors Lost More Than $13 Million in Scheme
ORLANDO, FLA. – Blayne S. Davis, 33, formerly of Naples, Fla., has been sentenced to a nine-year prison term on a federal charge stemming from an investment fraud scheme in which more than 100 investors lost over $11 million, announced U.S. Attorney Ronald C. Machen Jr. and James D. Robnett, Special Agent in Charge of the Tampa Field Office of IRS- Criminal Investigation.
Davis pled guilty on July 28, 2014, in the U.S. District Court for the Middle District of Florida, to a charge of conspiracy to commit mail and wire fraud. He was sentenced on Oct. 8, 2014, by the Honorable Carlos E. Mendoza.
Davis also will be required to pay restitution of between $11,894,776 and $13,215,874 to the investors who lost money. The Court will determine the final amount at a restitution hearing on Oct. 20, 2014. The Court is also expected to enter an order of forfeiture in a similar amount. In addition, following his prison term, Davis will be placed on three years of supervised release.
Davis has agreed to cooperate in the ongoing investigation. A co-defendant, Donovan G. Davis, Jr., 33, of Palm Bay, Fla., has pled not guilty and is awaiting trial in the case; trial is currently scheduled for May 4, 2015. (The two Davises are not related.) A third defendant, Damien L. Bromfield, 38, of Ocoee, Fla., pled guilty on Nov. 14, 2013, to conspiracy to commit wire fraud and is awaiting sentencing.
According to a Statement of Offense, signed by Blayne Davis as well as the government, and filed with the Court, Blayne Davis was the director of trading for Capital Blu Management, LLC, a Florida-based corporation that purported to offer investment and managed account services for investors in the off-exchange foreign currency, or “forex,” marketplace. Donovan Davis, Jr. was the managing member of Capital Blu, and Bromfield was the director of operations.
Blayne Davis and Bromfield formed Capital Blu in January 2007. In 2007, according to the statement of offense, Donovan Davis, Jr. solicited relatives, friends, and associates to invest in Capital Blu, resulting in substantial amounts being placed under the company’s management. Donovan Davis, Jr., became a managing member of Capital Blu in August 2007, working out of an office in Melbourne, Fla.
In or about September 2007, according to the statement of offense, the three men formed the CBM FX Fund, LP, which pooled investors’ money into a common fund to be traded by Capital Blu Management. Many of Capital Blu’s managed-account investors transferred their investments into the CBM FX Fund.
By January 2008, according to the statement of offense, the three partners knew that the CBM FX Fund sustained significant trading losses, resulting in large losses for its investors. At or about that time, the statement of offense states, the men began defrauding investors by means of materially false and fraudulent pretenses, representations, and promises. These included, according to the statement of offense, a series of misrepresentations about Capital Blu’s trading performance, the value of the fund, and the risks of the fund.
According to the statement of offense, the men conspired to post positive monthly returns to the CBM FX Fund’s investors from January through August of 2008, even though the fund and its investors had sustained net losses. In addition, the men diverted investors’ money from the fund to pay for Capital Blu’s operational expenses and personal expenses, including their salaries and payments for the use of a private airplane.
In or about September 2008, the National Futures Association, an independent self-regulatory organization that oversees commodities and futures trading in the United States, conducted a surprise audit of Capital Blu and suspended its operations. As of September 2008, according to the statement of offense, investors had invested over $16 million into the CBM FX Fund; the investors had lost over $11 million.
This case was transferred to the U.S. Attorney’s Office for the District of Columbia from the Middle District of Florida.
The case is being investigated by a task force consisting of agents from the IRS- Criminal Investigation, the U.S. Secret Service, the Florida Department of Law Enforcement, and the Brevard County, Fla., Sherriff’s Office. Related civil litigation was pursued by the Commodity Futures Trading Commission.
Assistance on the criminal case was provided by Paralegal Specialists Donna Galindo and Corinne Kleinman; former Paralegal Specialist Diane Hayes; Legal Assistant Angela Lawrence; Forensic Accountant Crystal Boodoo; Information Technology Specialist Thomas (Ron) Royal; and Victim Witness Advocates Yvonne Bryant and Tasheeka Hawkins, all of the U.S. Attorney’s Office for the District of Columbia. Assistant U.S. Attorneys Catherine K. Connelly and Anthony Saler, of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia, have assisted with guidance on asset forfeiture matters.
The case is being prosecuted by Assistant U.S. Attorney Jonathan P. Hooks of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Ephraim (Fry) Wernick of the U.S. Department of Justice, Criminal Division, who are designated as Special Attorneys in the Middle District of Florida.
14-228Five Individuals Indicted on Methamphetamine ChargesRead the Press Release
Follow @NDFLNewsPANAMA CITY, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced that a federal grand jury returned a four-count indictment yesterday charging five individuals with narcotic and firearm offenses.
The indictment charges that John Matthew Love (36), Mabrye Joseph Bettinger (41), Bryant Anthony Kreis (32), Dusti Nicole Broxson (26), all from the greater Panama City area, along with Anastacio Mendoza (37), and Carmen Theresa Silva (39), from Atlanta, Georgia, were involved in a conspiracy to distribute at least 50 grams of crystal methamphetamine throughout Florida and elsewhere. The indictment further alleges that the conspiracy began as early as July 1, 2014, and continued until September 21, 2014.
The indictment results from an investigation by agents of the U.S. Drug Enforcement Administration in Panama City, Florida, and Montgomery, Alabama, the Florida Department of Law Enforcement, the Panama City Police Department, the Walton County Sheriff’s Office, the Bay County Sheriff’s Office, the Okaloosa County Sheriff’s Office, and the Houston County Sheriff’s Office. Assistant U.S. Attorney Kathryn Risinger is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
Federal Judge Sentences Heroin Dealer to 10+ Years in PrisonRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 130 months imprisonment followed by five years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Terence F. McVerry imposed the sentence on David Scott a/k/a David Alford, 40.
According to information presented to the court, the defendant was caught with enough heroin to fill nearly 5,000 stamp bags just months after being released from federal prison on drug charges. At sentencing, the defense asked for leniency despite the fact that the defendant admitted that his actions “crippled the urban community.”
Judge McVerry also ordered that Scott forfeit thousands of dollars, as well as digital cameras and his vehicle.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Scott.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the October 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Steven Lee Burch. Abusive Sexual Contact in Indian Country. Burch, 46, of Collinsville, is charged with engaging in non-consensual sexual contact with a woman within Indian Country. If convicted, the statutory maximum penalty is two years in prison and a $250,000 fine. The Federal Bureau of Investigation and the Cherokee Nation Marshal Service are the investigating agencies.
David Castrejon. Possession of Methamphetamine with Intent to Distribute. Castrejon, 30, of Turlock, California, is charged with possessing 500 grams or more of methamphetamine with intent to distribute. If convicted, the minimum statutory penalty is 10 years in prison and a $10,000,000 fine. If convicted, the defendant may also forfeit seized currency. The Drug Enforcement Administration and the Tulsa Police Department are the investigating agencies.
Josue Antonio Chavez. Alien in the United States After Deportation. Chavez, 32, is charged with having unlawfully returned to the United States after being deported in June 2012 from Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.
Ray Alan Cook. Felon in Possession of a Firearm and Ammunition. Cook, 30, of Tulsa, is charged with possessing a .22 caliber pistol and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and $250,000 fine. The defendant also faces forfeiture of the firearm involved in the offense. The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigating agencies.
Joan Ervin Cruz-Garcia. Alien in the United States After Deportation. Cruz-Garcia, 24, is charged with having unlawfully returned to the United States after being deported in January 2012 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.
Cesar Estrada-Sandoval. Alien in the United States After Deportation. Estrada-Sandoval, 30, is charged with having unlawfully returned to the United States after being deported in December 2007 from El Paso, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.
Joshua Eli Owen. Felon in Possession of Firearm and Possession of Firearm After Conviction of Misdemeanor Crime in Domestic Violence. Owen, 26, of Tulsa, is charged with possessing a .25 caliber pistol after prior felony convictions and after having been convicted of a misdemeanor crime of domestic violence. If convicted, each offense carries a statutory maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearm and Explosives is the investigating agency.
Antonio Padilla-Lopez. Alien in the United States After Deportation. Padilla-Lopez, 42, is charged with having unlawfully returned to the United States after being deported in December 2007 from El Paso, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.
George Eugene Pryor. Theft of Government Property. Pryor, 46, of Sand Springs, is charged with fraudulently receiving approximately $19,000 in Social Security disability payments from the Social Security Administration. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Social Security Administration-Office of the Inspector General is the investigating agency.
Ismael Serrano-Rodriguez. Alien in the United States After Deportation. Serrano-Rodriguez, 56, is charged with having unlawfully returned to the United States after being deported in April 2012 from San Ysidro, California. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.
Laura Sosa-Bringas. Alien in the United States After Deportation. Sosa-Bringas, 38, is charged with having unlawfully returned to the United States after being deported in August 2012 from Otay Mesa, California. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.
Farrell Man Sentenced to 21 Months in Prison for Criminal Contempt of CourtRead the Press Release
PITTSBURGH - A Mercer County resident has been sentenced in federal court in Pittsburgh to 21 months’ incarceration, followed by one year of supervised release, on his conviction of criminal contempt, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Robert M. Spruill, 30.
According to information presented to the court, Spruill was prosecuted several years ago in federal court in the Western District of Pennsylvania for drug-trafficking and firearms offenses. On June 6, 2008, he was sentenced to 57 months imprisonment, followed by three years of supervised release.
Spruill was released from custody and began his supervised release on Dec. 27, 2011. During the following year, Spruill was convicted in state court of misdemeanor Criminal Trespass and Theft by Unlawful Taking. He also failed to comply with various conditions of his supervised release, including refraining from illegal marijuana use.
The United States Probation Office filed a petition to revoke Spruill’s supervised release. A hearing was held on Dec. 14, 2012, after which the Honorable Terrence F. McVerry revoked Spruill’s supervised release and sentenced him to six months’ incarceration. Judge McVerry initially stated that Spruill would commence his term of imprisonment immediately. Spruill’s counsel, however, requested that the Court allow Spruill to spend the holidays with his family, and Judge McVerry agreed to permit Spruill to remain at home for the holidays. He was specifically instructed to surrender to the United States Marshals Service’s office on the Second Floor of the United States Federal Courthouse, in downtown Pittsburgh, on Jan. 3, 2013, by noon, to begin to serve his sentence.
Spruill disobeyed that Court Order, and he failed to turn himself in as directed. On January 4, 2013, a bench warrant was issued for Spruill’s arrest.
On Jan. 10, 2013, the United States Marshals Service’s Fugitive Task Force found and arrested Spruill at his girlfriend’s residence in Mercer County. Spruill was found hiding in the attic, under clothing. Due to Spruill’s failure to comply with the Court’s order to report for service of sentence, he was charged with criminal contempt, and he pleaded guilty to that charge earlier this year.
During the sentencing hearing, Judge Bissoon rejected the defendant’s request for leniency, noting the “very serious nature of the offense.” Judge Bisson also stated that a 21-month sentence was appropriate in light of Spruill’s “extensive criminal history” involving “violence and drugs.”
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshals Service for the investigation leading to the successful prosecution of Spruill.
Fairmont Man Convicted for Selling Cocaine Near Housing Authority Apartment BuildingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Fairmont resident Claude Jones, 29, pled guilty Wednesday to distributing cocaine within 1,000 feet of a protected location, United States Attorney William J. Ihlenfeld, II, announced today.
Jones faces between one and forty years in prison and a fine of up to $2,000,000.00 for selling cocaine within 1,000 feet of the Willow Ridge Apartments, a Fairmont housing facility owned by a public housing authority.
An investigation by the Three Rivers Drug Task Force led to the prosecution of Jones. Assistant U.S. Attorney Zelda Wesley is prosecuting the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
East Hollygrove Neighborhood Gang Member, Avian Brule, Sentenced on Federal Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that AVIAN BRULE, a/k/a “Ave,” 21, a resident of New Orleans, Louisiana, was sentenced yesterday after having pled guilty to federal drug and firearm violations. Judge Ivan L.M. Lemelle sentenced BRULE, a first-time offender, to serve 50 months in federal prison and ordered him to serve 3 years of supervised release once he is released from prison.
BRULE was one of seven defendants charged with conspiring to distribute heroin and cocaine base in the East Hollygrove neighborhood. In addition, all seven defendants were charged with conspiring to possess firearms in furtherance of their drug trafficking crimes, and several of them were charged with committing substantive acts of violence.
To date, all of the gang members in this case, except for CHARLES JOHNSON, a/k/a “Chuck,” 25, have pled guilty to various charges. JOHNSON is scheduled for trial on December 8, 2014. The following co-defendants are currently pending separate sentencing hearings over the next two months: ROBERT JOHNSON, a/k/a “Skinny,” 24; THOMAS HENDERSON, a/k/a “T,” 24; LAVELL STOVAL, a/k/a “Vell,” 21; WILLIAM HENDERSON, a/k/a “Will,” 20; and, ERSKINE WATERS, 22.
According to court documents and evidence presented at BRULE’s sentencing, federal agents seized a cellular phone from co-defendant WILLIAM HENDERSON. After obtaining a search warrant for the phone, agents found a video, recorded on November 5, 2012, that WILLIAM HENDERSON took of himself and BRULE conducting a heroin sale in a car with a known third party. (See attached video) In the video BRULE and HENDERSON are seen negotiating a heroin deal while a four-year-old child was sitting in the backseat of the car. Additional pictures retrieved from HENDERSON’s phone show the same child holding a semi-automatic handgun in the backseat of the same vehicle. (See attached photographs)
U.S. Attorney Polite stated, “Even as a first-time offender, Avian Brule deserved the
lengthy jail sentence imposed here. He and his East Hollygrove gang members terrorized their own neighborhood through narcotics trafficking and violence. Even worse, Brule and his fellow defendants exposed a four-year-old boy to their criminal conduct. Being exposed to guns and drugs certainly placed this boy at risk of physical harm. At the same time, it jeopardizes his future, as the misguided lesson learned by him –and other young people in the same predicament – is that this conduct is acceptable, normal, and even encouraged. It certainly is not. We must use all available tools – prevention, intervention and enforcement – to break this cycle of criminality.”U.S. Polite praised the work of the Federal Bureau of Investigations as part of the MAG Unit in investigating this matter. Deputy Chief of the Criminal Division and Assistant United States Maurice E. Landrieu, Jr. is in charge of this prosecution.
District Man Pleads Guilty to Carrying Out Two Robberies Within 36 Hours in D.C. and Maryland-Defendant’s Two Brothers and Sister Awaiting Trial in Case-Read the Press Release
WASHINGTON – Alex Alexander, 21, of Washington, D.C., pled guilty today to federal charges stemming from a pair of robberies that took place within a 36-hour period of a convenience store in Montgomery County, Md. and a bank in the District of Columbia.
The plea was announced by U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Alexander pled guilty in the U.S. District Court for the District of Columbia to one count of conspiracy to interfere with interstate commerce by robbery and one count of bank robbery. The Honorable Senior Judge Paul L. Friedman scheduled sentencing for Jan. 6, 2015. The charges carry a maximum of 20 years in prison, as well as restitution to the victims.
According to a statement of offense, signed by the defendant as well as the government, Alexander and two of his brothers entered the Colombo Bank, in the 1300 block of 9th Street NW, at approximately noon on May 12, 2014. After leaving the bank, he and his brothers decided that they were going to return at some point to rob it.
On May 13, 2014, and continuing into May 14, 2014, according to the statement of offense, Alexander, his two brothers, and one of his sisters were riding around the District of Columbia, in the sister’s vehicle, when they decided they were going to rob a convenience store located at a gas station in the 8300 block of Colesville Road in Silver Spring, Md.
When the four siblings arrived at the convenience store at approximately 2:55 a.m. on May 14, 2014, they entered the establishment and robbed the attendant of about $158 before fleeing the scene and returning to the District of Columbia.
On May 15, 2014, at approximately 10:30 a.m., Alexander and the same two brothers returned to the Colombo Bank on 9th Street NW, in their sister’s vehicle. According to the statement of offense, Alexander and his two brothers entered the bank while their sister waited inside her vehicle. Alexander and his brothers robbed the teller of approximately $800 before fleeing to the waiting vehicle. In fleeing the scene, they dropped the money.
The brothers – Allante Alexander, 20, and Alvin Alexander, 23 – and the sister – Allesha Alexander, 25 – also are charged with federal offenses in the case. They have pled not guilty.
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier commended the investigative work of the Special Agents from the FBI’s Washington Field Office who worked on the case and the entire joint FBI/MPD Violent Crimes Task Force. In addition, they acknowledged the work of Legal Assistant Candice Sisco, Paralegal Specialist Starla Stolk, and Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section. Finally, they expressed appreciation for the work of Assistant U.S. Attorney David B. Kent, who is prosecuting the case.
14-229Detroit Woman Sentenced to Probation with Home Detention for Heroin Trafficking SchemeRead the Press Release
Johnstown, Pa. - A resident of Detroit, Mi., has been sentenced in federal court to three years’ probation, with home detention for the first six months; and 50 hours of community service to be served within one year, on her conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Chivon Buttrom, 34.
According to information presented to the court, from the spring of 2011 to May 15, 2012, Buttrom, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department conducted the investigation leading to the successful prosecution of Buttrom. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
Department of Justice Awards Hiring Grants to Help Reduce Violent Crime in CommunitiesRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley, the U.S. Department of Justice and the Office of Community Oriented Policing Services (COPS) announced funding awards to the Lake Charles Police Department aimed at creating seven new community police officer positions. Nearly $124 million will be awarded nationally, including $745,796 to the Lake Charles Police Department.
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
“This grant will allow the Lake Charles Police Department to enhance law enforcement operations and increase protection in the community by hiring new personnel,” Finley stated. “Our office works with all law enforcement agencies within the Western District of Louisiana, and I’m very happy to see this department grow. I also want to congratulate the police department for the hard work taken to obtain this grant.”
Lake Charles Police Chief Donald Dixon said that the department plans on hiring four new officers immediately and then would like to add three more over the next three years, for a total of seven new officer positions. He said the officers will be part of their community policing program. The program works with neighborhood watch groups and maintains contacts with members of the community in order to strengthen policing operations.
“We’re really excited to be able to hire additional officers,” Lake Charles Police Chief Donald Dixon said. “This grant comes at a time of economic expansion for our area, and we want to be ready.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans. The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Defendant Pleads Guilty for Role in Brutal Sex Trafficking RingRead the Press Release
Acting Assistant Attorney General Molly Moran for the Justice Department’s Civil Rights Division and U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida announced today that Rafael Alberto Cadena-Sosa pleaded guilty in the Southern District of Florida to one count of conspiracy and one count of holding a person in involuntary servitude. Cadena-Sosa faces a maximum sentence of 15 years in prison and a fine of $500,000. Sentencing is scheduled to occur on Jan. 27, 2015, before United States District Judge Jose Martinez. According to the terms of the plea agreement, the parties will recommend the maximum sentence of 15 years and over $1.26 million in restitution to the victims.
Cadena-Sosa, a 45 year-old Mexican national, pleaded guilty to holding the victim, a young, undocumented Mexican national, in involuntary servitude from 1996 to 1997, using beatings, rapes, threats of harm toward the victim and her family and threats of arrest to compel her to engage in prostitution to pay off a smuggling debt. Cadena-Sosa also pleaded guilty to conspiring with other members of the Cadena organization to commit additional offenses in connection with the scheme.
Sixteen defendants were charged in a superseding indictment filed in 1998. Cadena-Sosa was arrested in Mexico and extradited to the United States in November 2013. Four other family members have been convicted, including Cadena-Sosa’s uncle, Rogerio Cadena, who pleaded guilty in 1999 and was sentenced to 15 years; Cadena-Sosa’s brother, Abel Cadena-Sosa, who was convicted in Mexico and sentenced to 24 years, and two other brothers, Hugo and Juan Luis Cadena-Sosa, who pleaded guilty 2002 and 2008, and were sentenced to 5 years and 15 years, respectively. Six other defendants have pleaded guilty in federal court in connection with the scheme, and one was convicted in state court for a murder outside a Cadena-run brothel.
According to court records, the defendant and other members of the Cadena organization recruited young women and girls, some as young as fourteen, in Veracruz, Mexico, and lured them to the United States on false promises of legitimate jobs. The defendants then smuggled the victims into the United States, imposed heavy smuggling debts, and compelled them into prostitution for twelve hours a day, six days a week, using brutal assaults, rapes and threats to control the victims and punish those who attempted to escape.
“No human being should have to endure the atrocities these young women and girls suffered at the hands of the Cadena organization,” said Acting Assistant Attorney General Moran. “These violations of the victims’ individual rights and freedom are intolerable in a nation founded on rights, liberty, and the rule of law. The Department of Justice will continue in its relentless efforts to bring human traffickers to justice and restore the rights and dignity of the courageous survivors of this crime.”
“Undoubtedly, sex trafficking is one the most serious crimes prosecuted by our Office and the Department of Justice,” said U.S. Attorney Ferrer. “The heinous acts committed against these young women and girls by the Cadena organization simply cannot be tolerated, and we will continue to identify, arrest and prosecute those who seek to profit at the expense of the suffering of others. The victims here are survivors and today’s plea represents one more step towards closure in a case that has taken them down a long road to justice.”
“Rafael Alberto Cadena-Sosa is a brutal criminal who threatened and coerced young victims into prostitution to pay off smuggling debts,” said FBI Special Agent in Charge George L. Pira of the FBI’s Miami Office. “ He is now behind bars in large part due to the diligence and dedication of our many law enforcement partners who helped bring this case to justice.”
Acting Assistant Attorney General Moran and U.S. Attorney Ferrer commended the collaborative efforts of multiple law enforcement agencies throughout the investigation and prosecution, including the Federal Bureau of Investigation, the Department of Homeland Security’s Customs and Border Protection and Immigration and Customs Enforcement, the Bureau of Alcohol, Tobacco and Firearms, Florida Department of Law Enforcement, Palm Beach County Sheriff’s Office, West Palm Beach Police Department, Okeechobee County Sheriff’s Office, Fort Pierce Police Department, Avon Park Police Department, Boynton Beach Police Department and Lee County Sheriff’s Office. They also thanked the Justice Department’s Office of International Affairs for its assistance with the extradition. The case is being prosecuted by Assistant United States Attorney Adam McMichael and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Defendant Pleads Guilty for Role in Brutal Sex Trafficking RingRead the Press Release
U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida and Acting Assistant Attorney General Molly Moran for the Justice Department’s Civil Rights Division announced today that Rafael Alberto Cadena-Sosa pleaded guilty in the Southern District of Florida to one count of conspiracy and one count of holding a person in involuntary servitude. Cadena-Sosa faces a maximum sentence of 15 years in prison and a fine of $500,000. Sentencing is scheduled to occur on Jan. 27, 2015, before United States District Judge Jose Martinez. According to the terms of the plea agreement, the parties will recommend the maximum sentence of 15 years and over $1.26 million in restitution to the victims.
Cadena-Sosa, a 45 year-old Mexican national, pleaded guilty to holding the victim, a young, undocumented Mexican national, in involuntary servitude from 1996 to 1997, using beatings, rapes, threats of harm toward the victim and her family and threats of arrest to compel her to engage in prostitution to pay off a smuggling debt. Cadena-Sosa also pleaded guilty to conspiring with other members of the Cadena organization to commit additional offenses in connection with the scheme.
Sixteen defendants were charged in a superseding indictment filed in 1998. Cadena-Sosa was arrested in Mexico and extradited to the United States in November 2013. Four other family members have been convicted, including Cadena-Sosa’s uncle, Rogerio Cadena, who pleaded guilty in 1999 and was sentenced to 15 years; Cadena-Sosa’s brother, Abel Cadena-Sosa, who was convicted in Mexico and sentenced to 24 years, and two other brothers, Hugo and Juan Luis Cadena-Sosa, who pleaded guilty 2002 and 2008, and were sentenced to 5 years and 15 years, respectively. Six other defendants have pleaded guilty in federal court in connection with the scheme, and one was convicted in state court for a murder outside a Cadena-run brothel.
According to court records, the defendant and other members of the Cadena organization recruited young women and girls, some as young as fourteen, in Veracruz, Mexico, and lured them to the United States on false promises of legitimate jobs. The defendants then smuggled the victims into the United States, imposed heavy smuggling debts, and compelled them into prostitution for twelve hours a day, six days a week, using brutal assaults, rapes and threats to control the victims and punish those who attempted to escape.
“Undoubtedly, sex trafficking is one the most serious crimes prosecuted by our Office and the Department of Justice,” said U.S. Attorney Ferrer. “The heinous acts committed against these young women and girls by the Cadena organization simply cannot be tolerated, and we will continue to identify, arrest and prosecute those who seek to profit at the expense of the suffering of others. The victims here are survivors and today’s plea represents one more step towards closure in a case that has taken them down a long road to justice.”
“No human being should have to endure the atrocities these young women and girls suffered at the hands of the Cadena organization,” said Acting Assistant Attorney General Moran. “These violations of the victims’ individual rights and freedom are intolerable in a nation founded on rights, liberty, and the rule of law. The Department of Justice will continue in its relentless efforts to bring human traffickers to justice and restore the rights and dignity of the courageous survivors of this crime.”
“Rafael Alberto Cadena-Sosa is a brutal criminal who threatened and coerced young victims into prostitution to pay off smuggling debts,” said FBI Special Agent in Charge George L. Pira of the FBI’s Miami Office. “He is now behind bars in large part due to the diligence and dedication of our many law enforcement partners who helped bring this case to justice.”
U.S. Attorney Ferrer and Acting Assistant Attorney General Moran commended the collaborative efforts of multiple law enforcement agencies throughout the investigation and prosecution, including the Federal Bureau of Investigation, the Department of Homeland Security’s Customs and Border Protection and Immigration and Customs Enforcement, the Bureau of Alcohol, Tobacco and Firearms, Florida Department of Law Enforcement, Palm Beach County Sheriff’s Office, West Palm Beach Police Department, Okeechobee County Sheriff’s Office, Fort Pierce Police Department, Avon Park Police Department, Boynton Beach Police Department and Lee County Sheriff’s Office. They also thanked the Justice Department’s Office of International Affairs for its assistance with the extradition. The case is being prosecuted by Assistant United States Attorney Adam McMichael and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
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.
Convicted Businessman Pleads Guilty to Obstructing JusticeRead the Press Release
San Diego, CA - James Yiu Lee pled guilty earlier today to obstructing justice in relation to a fraud scheme that resulted in investor’s losing more than $10 million. In his guilty plea, Lee also admitted hiding stolen funds in shell corporation accounts and using a series of elaborate transactions to avoid having to pay restitution he owed the United States from a previous felony conviction.
In December 1997, Lee (who was a part-time resident of La Jolla) was convicted of defrauding investors and embezzling from their pension funds. In November 1998, he was sentenced to 30 months in custody and ordered to pay $2,880,000 in restitution. To date, Lee has paid less than $30,000 of the owed restitution. According to documents filed in court, Lee began a new scheme in 2007, which he intentionally designed to obstruct the United States from collecting his income to pay the outstanding restitution.
As noted in his plea agreement, by 2009, Lee was soliciting new investors and falsely promising to share 50% of all realized gains and losses incurred from his online trading activity. In addition, he attracted clients by falsely informing them that he was a CPA, with Ph.D., J.D., and M.B.A. degrees. Lee also failed to disclose his 1997 felony fraud conviction.
In entering his plea, Lee admitted instructing clients to send management fees and profits from trades to bank accounts he opened in the name of shell corporations, including San Diego-based ELX Int., Inc. (“ELX”), which failed to list Lee as a corporate officer or on its bank account. Lee obtained use of his client’s funds by directing them to send payments to the ELX bank account. Once the assets were under his control, Lee would then transfer them to other shell accounts under his control. He would then use the hundreds of thousands of dollars of these stolen funds for personal expenses.
By January 2011, Lee admitted that his trading activity created significant realized losses to client accounts. Rather than pay clients for 50% of the losses, as promised, Lee restructured billing invoices to disguise the losses. He then proceeded to falsely bill his clients for non-existent gains. In total, Lee’s trading activity led to over $10 million in losses for over 14 clients.
Lee entered his guilty plea before Magistrate Judge Barbara L. Major. U.S. District Court Judge Roger T. Benitez will sentence Lee on January 19, 2015.
DEFENDANT Case Number: 14CR2937-BEN James Yiu Lee CHARGESTitle 18, United States Code, Section 1503 (Obstruction of Justice)
Maximum penalty: 10 years of custody; $250,000 Fine SUMMARY OF PREVIOUS CHARGE Case Number: 95CROO41-MMC-1 (NDCA)Wire Fraud (18 U.S.C. § 1343) & Pension Embezzlement (18 U.S.C. § 664)
INVESTIGATING AGENCYFederal Bureau of Investigation
Clarksburg Woman Convicted of Distributing Painkillers Near PlaygroundRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Amber McCormick, 29, of Clarksburg, pled guilty to distributing Oxycodone within 1,000 feet of the Harrison Street Playground in Clarksburg, West Virginia, United States Attorney William J. Ihlenfeld, II, announced today.
McCormick faces between one and forty years in prison and a fine of up to $2,000,000.00.
McCormick pled guilty after an investigation by the Greater Harrison County Drug and Violent Crime Taskforce. Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Clarks Summit Attorney Indicted for Title Insurance FraudRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that Susan C. Kevra-Shiner, 46, Clarks Summit, Pennsylvania, was indicted yesterday by the federal grand jury and charged with seven counts of mail fraud relating to an abstract and title insurance company she owned and operated in Avoca, Pennsylvania, known as GK Abstract Co., Inc. If convicted of the charges, Kevra-Shiner faces up to 20 years' imprisonment and/or $250,000 in fines on each count, as well as an order of restitution to the victims.
According to U.S. Attorney Peter Smith, Kevra-Shiner was an attorney admitted to practice in Pennsylvania in 1994. Kevra-Shiner handled real estate transactions as part of her legal practice, and starting in 2003, she issued title insurance policies on behalf of Stewart Title Guaranty Company, a title insurance underwriter based in Texas. Stewart terminated its agency agreement with Kevra-Shiner on September 23, 2008, but the Indictment alleges that Kevra-Shiner continued to issue numerous title insurance policies to her clients after that date. As a result, the Indictment alleges that she defrauded approximately 76 homeowners and/or lenders of $72,000 in title insurance premiums which she was not authorized to receive and for which no valid title insurance policy was issued.
On February 28, 2013, the Pennsylvania Office of Disciplinary Counsel suspended Kevra-Shiner's law license for four years as a result of these activities.
The case was investigated by the FBI and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
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.
Child Pornographer Sentenced to 57 MonthsRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for Guam, announced that JIMMY ALONSO TURRUBIARTES, was sentenced on October 8, 2014, in the U.S. District Court of Guam by Chief Judge Frances Tydingco-Gatewood, to 57 months incarceration, five years of supervised release, and ordered to pay a $100 special assessment.
Defendant TURRUBIARTES pled guilty on September 11, 2013 to one count of Receipt of Child Pornography in violation of Title 18 U.S.C. Section 2252A(a)(2). Defendant TURRUBIARTES utilized the peer to peer (P2P) network to receive approximately 150 movies which depict the sexual abuse of young children. Defendant TURRUBIARTES was also ordered to register with the Sex Offender Registry wherever he lives, works or attends school. He was also ordered to forfeit his computer and all storage devices.
U.S. Attorney Limtiaco states “Child pornography offenses involve the sexual abuse and exploitation of children. These offenses are extremely serious because they result in perpetual harm to the child victims, and normalize the sexual exploitation of children. When the internet is utilized to obtain these images of child sexual abuse, the images can travel to offenders domestically and internationally anywhere in the world, to include the Pacific region. The harm to victims is lifelong. The U.S. Attorney’s Office remains committed to aggressively prosecute defendants who victimize and prey on children through any means, including by computer.”
The U.S. Attorney reminds defendants who have committed sexual abuse of children that, under federal and local law, all sex offenders have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction. Sex offenders who travel to Guam and who reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school - they must also periodically update their registration information. The U.S. Attorney notes that the sex offender registry was created in order to protect the public by protecting victims, preventing further victimization and informing the public of the whereabouts of sex offenders. Guam’s Sex Offender Registry can be found online at www.guamcourts.org.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.
The investigation was conducted by the Naval Criminal Investigative Service. The case was handled by Assistant U.S. Attorney R. San Nicolas.Cherokee, N.C. Woman Sentenced to More Than Five Years in Prison in Connection with Oxycodone Distribution RingRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger today sentenced Taryn Krista Elizabeth Toineeta Rattler, 26, of Cherokee, N.C., to 70 months in prison on drug trafficking conspiracy charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Rattler was also ordered to serve three years under court supervision upon completion of her prison term.
U.S. Attorney Tompkins is joined in making today’s announcement by John S. Comer, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the North Carolina; Jason O’Neal, Deputy Associate Director of the Bureau of Indian Affairs, Division of Drug Enforcement; Chief Ben Reed of the Cherokee Indian Police Department; Sheriff Curtis Cochran of the Swain County Sheriff’s Office; Sheriff Mickey Anderson of the Graham County Sheriff’s Office; and Sheriff Jimmy Ashe of the Jackson County Sheriff’s Office.
According to filed court documents and court proceedings, from January 2007 to December 2012, Rattler and her conspirators engaged in a conspiracy to distribute narcotics including Oxycodone, cocaine, marijuana and Alprazolam in Swain and Jackson Counties. At today’s sentencing hearing, Rattler was found to be accountable for trafficking 404,400 milligrams of Oxycodone over the course of the conspiracy, with a street value of $404,400. In September 2013, Rattler pleaded guilty to one count of conspiracy to distribute a Schedule I controlled substance.
Three of Rattler’s conspirators have already have received prison sentences: Mark Allen Winstead was sentenced to 38 months; Timothy Leroy Rattler was sentenced to 18 months; and Jacob Hunter Rattler was sentenced to 15 months. Jackie Lee Rattler and Evan Thomas Norris, Jr. have also pleaded guilty and currently await sentencing.
In a separate case, Judge Reidinger also sentenced today Kandace Rhean Griffin to 70 months in prison, followed by three years of supervised release. According to court records, from March to October 2012, Griffin conspired with other individuals to distribute Oxycodone and other narcotics in Swain County. Griffin, 25, of Cherokee, pleaded guilty in September 2013 to one count of conspiracy to possess with intent to distribute a Schedule II controlled substance.
All federal sentences are served without the possibility of parole. U.S. Attorney Tompkins thanked all the law enforcement agencies involved in these investigations for their continued cooperation and assistance. The prosecution was handled by Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville.
California Man Sentenced for Possession with Intent to Distribute HeroinRead the Press Release
On October 9, 2014, Roberto Sanchez Quiroz, 29, of Sanger, California, was sentenced to five years (60 months) in prison for possession with intent to distribute 100 grams or more of heroin. Following the prison term, Quiroz will serve four years on supervised release.
On November 20, 2013, Quiroz was contacted outside his Lincoln hotel by investigators who had received information regarding Quiroz’s possible involvement in drug transactions. Quiroz consented to a search of his hotel room. He was found in possession of 109.76 grams (3.8 ounces) of heroin and $14,598.78 in cash. Quiroz told officers that he intended to sell the heroin in Omaha. He said the cash represented proceeds from prior marijuana sales, and he was using that money to pay for his Lincoln hotel and other expenses while he prepared to go to Omaha to sell the heroin.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.Cadillac Technology Professional Sentenced to 21 Months in Prison for Stealing $350,000 from Aar Mobility SystemsRead the Press Release
Kirk Weir Ordered To Repay $371,738.18 To The Victims Of His Scheme To Defraud
GRAND RAPIDS, MICHIGAN – Kirk Edward Weir, 40, of Cadillac, was sentenced to almost two years in federal prison for fraudulently acquiring technology equipment and software and misusing a company purchasing card. Additionally, Weir was ordered to pay $371,738.18 in restitution to the victims of the scheme and must forfeit an additional $350,000 to the United States in the form of a money judgment. He will serve three years of supervised release after his prison sentence. The Honorable Robert J. Jonker, U.S. District Judge, imposed the sentence.
Weir pled guilty in June 2014 to one count of wire fraud in a scheme involving his former employer, AAR Mobility Systems, a global supplier of rapid deployment equipment and mobile tactical shelters to the government and defense industries. Weir committed the scheme between 2007 and 2012 while employed as a technology administrator by causing AAR to purchase approximately $290,000 in equipment and software and $60,000 in company credit card purchases for items ostensibly for use by AAR. In truth, Weir diverted the technology items to sell on the Internet and purchased personal items such as outdoor and sports equipment, boating accessories, and clothing, some of which he sold on the Internet. He admitted altering company records and manipulating internal controls to conceal his crimes.
U.S. Attorney Patrick Miles, Jr. said, “Weir abused the trust placed in him by his employer by quietly but systematically stealing from the company over the course of several years. Despite the great lengths he took to conceal the theft, the scheme ended and unraveled when a concerned citizen reported the suspected fraud to law enforcement. We applaud those who refuse to simply look the other way by reporting suspected criminal activity. This helps ensure that offenders are held accountable and justice is brought to victims.”
The case was investigated by Detective/Lieutenant Todd Golnick of the Cadillac Police Department, the Wexford County Prosecutor’s Office, and the FBI. Assistant U.S. Attorney Christopher O’Connor prosecuted the case.
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Biddeford Man Sentenced to 2½ Years for Pharmacy RobberyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Kyle
Desmarais, 32, of Biddeford, was sentenced yesterday in U.S. District Court by Judge Nancy
Torresen to 2 ½ years in prison for pharmacy robbery. Desmarais pleaded guilty to the charge
on June 20, 2014.According to court records, on February 13, 2014, Desmarais drove Billy Schildroth to a
Rite Aid pharmacy located in Old Orchard Beach, so that Schildroth could rob the
pharmacy. Schildroth absconded with Oxycontin (oxycodone) and Suboxone (buprenorphine)
after putting his hand inside his coat and telling the pharmacist that he had “a gun and five
bullets” and not to alert anyone or he would shoot the pharmacist in the face. After the robbery,
Desmarais drove Schildroth away knowing that he had committed the robbery.Schildroth pleaded guilty on August 1, 2014 and is scheduled to be sentenced on
November 18, 2014. Schildroth faces up to 20 years in prison and a $250,000 fine.The investigation was conducted by the Federal Bureau of Investigation and the Old
Orchard Beach Police Department.Beloit Man Pleads Guilty to Bank FraudRead the Press Release
WICHITA, KAN. – A Beloit man pleaded guilty Thursday to defrauding a bank in Ottawa County, U.S. Attorney Barry Grissom said.
Matthew R. Shurts, 42, Beloit, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted he provided false information when he applied for a loan from the Bank of Tescott. On July 19, 2013, he showed representatives of the bank 71 cows, 71calves and eight bulls the he claimed were his and would serve as collateral on his loan. In fact, he owned only 17 cows and 17 calves among those he showed the representatives of the bank.
On Aug. 1, 2013, he filed a financial statement with the bank representing that he had 70 cow/calf pairs and six bulls worth a total of $152,000. In fact, he had 13 cow/calf pairs valued at a total of $26,000. In December 2013 he told bank representatives he had sold cattle and would be paying off some of his loan. He wrote a check for $53,000 that did not have sufficient funds on account to clear.
Sentencing is set for Dec. 22. He faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Battle Creek Man Sentenced to 12 Years for Possessing Multiple Guns and Possessing A Firearm in Furtherance of Selling HeroinRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Vincent Isaac-Peter Jones, age 28, of Battle Creek, was sentenced to 152 months – well over 12 years -- in prison after pleading guilty to possessing two firearms as a convicted felon and possessing a third firearm in furtherance of heroin trafficking. One of the firearms had been reported stolen; another had an obliterated serial number. Jones had multiple prior felonies, including for possession of narcotics and a weapon.
U.S. Attorney Patrick Miles said, “Drugs and stolen guns are a toxic mix, which is only made worse when they are possessed by convicted felons. Battle Creek and Western Michigan neighborhoods are safer after eliminating these guns and drugs. This sentence sends a strong signal that people who use stolen guns to aid selling drugs face significant punishments in the federal system.”
ATF Special Agent in Charge Steven J. Bogdalek said “ This sentence imposed highlights our effort along with our state and local law enforcement partners, as well as the United States Attorney’s Office, to remove violent individuals like Mr. Jones from our streets. Mr. Jones’ repetitive past displayed a continued willingness to carry and use firearms to commit crimes, including narcotics trafficking, that continue to paralyze our community”.
This case resulted from a coordinated investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Battle Creek Police Department’s Gang Suppression Unit and Special Investigations Unit. This case was prosecuted by Assistant U.S. Attorney Russ Kavalhuna.
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