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19 November 2014
Man Charged for Armed Robbery of Cleveland Heights StoreRead the Press Release
A federal grand jury returned a two-count indictment charging Willie L. Monroe, 32, of Cleveland, with one count of interference with commerce by means of robbery and one count of using and carrying a firearm during and in relation to a crime of violence.
The indictment alleges that Monroe, and other unknown individuals, attempted to rob a Family Dollar store in Cleveland Heights, Ohio, on September 23, 2014. It further alleges that Monroe and the other robbers carried and brandished a firearm during the incident.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases the sentence will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division, and the Cleveland Heights Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lincoln Man Sentenced for Harboring a FugitiveRead the Press Release
United States Attorney Deborah R. Gilg announced that on November 19, 2014, a Lincoln man was sentenced to two and one-half years (30 months) in prison for harboring a fugitive. Senior United States District Judge Richard G. Kopf ordered that Aaron James Jackson, 28, serve two years on supervised release after the completion of his prison term.
On March 20, 2014, members of the Metro Fugitive Task Force informed Aaron Jackson of the existence of a federal warrant for the arrest of his brother, Jason Robert Jackson. At that time, Aaron Jackson claimed not to know the whereabouts of his brother. However, information provided to law enforcement indicated that between March 20, 2014, and April 4, 2014, Aaron Jackson helped his brother avoid arrest.
This case was investigated by the Metro Fugitive Task Force, including officers and agents of the United States Marshals Service, the Lancaster County Sheriff’s Department, and the Lincoln Police Department.
Ladson Woman Charged with Bank FraudRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that his office has filed an Information charging Yvondia “Susan” Young, age 57, with Bank Fraud in violation of 18 U.S.C. §1344 . The Information alleges that from 2007 to 2013, Young embezzled approximately $325,000 from her employer, the Heritage Trust Federal Credit Union, by issuing official credit union checks to make payments on her credit card bills.
The case was investigated by Special Agents with the Federal Bureau of Investigation. Assistant United States Attorney Eric Klumb is prosecuting the case.
The United States Attorney stated that the charges alleged in the Information are merely accusations and that all defendants are presumed innocent until and unless proven guilty.LaRose Man Pleads Guilty to Misuse of a Coast Guard LicenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STEVEN BOURG, 51, of LaRose, Louisiana, pled guilty today to misuse of a federal license.
According to court documents, on or about October 10, 2012, the Coast Guard received information from Daigle Towing in Belle Chase, Louisiana, that BOURG had been hired by Daigle Towing to captain the uninspected towing vessel (UTV) Mason Ray but that BOURG had been found asleep while on watch. The Coast Guard checked the Marine Information for Safety and Law Enforcement database and found that since 2007 when he had voluntarily surrendered the license, BOURG had not possessed a merchant mariner license as issued by the Coast Guard and as required to captain a towing vessel.
The investigation revealed that BOURG submitted an altered merchant mariner license with his application to Daigle Towing. The license was in the name of BOURG, but listed the issuance date as January 2009 and the expiration date as January 2014. BOURG had not been issued a license nor had his license renewed in January 2009. As a result of BOURG’s submission of the altered license, he had been employed by Daigle Towing from September 19, 2012, until September 25, 2012. Prior to being employed by Daigle Towing, BOURG had used the altered license to apply and get employment with Triple C Towing, LLC, in Houma, Louisiana. BOURG applied to Triple C Towing on or about July 19, 2011, and ended his employment on or about February 1, 2012.
U.S. District Court Judge Kurt D. Engelhardt scheduled sentencing for February 4, 2015. BOURG faces a maximum of five years imprisonment and/or a maximum fine of $250,000.
U.S. Attorney Polite praised the work of the Coast Guard Investigative Service’s work on this matter. Assistant United States Attorney Emily K. Greenfield prosecuted the case.
Killeen Man Sentenced to Federal Prison for Defrauding Soldiers in Loan ScamRead the Press Release
In Waco today, 21-year-old Daniel Lee Rosales of Killeen, TX, was sentenced to two years in federal prison for stealing money from U.S. Army soldiers though a fraudulent loan scam announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Walter S. Smith, Jr. ordered that Rosales pay $28,180 restitution to his victims and be placed on supervised release for a period of five years after completing his prison term.
On September 4, 2014, Rosales pleaded guilty to one count of false statement on loan or credit application. By pleading guilty, Rosales admitted that in May 2013, he posed as a Sergeant in the First Cavalry Unit at Fort Hood to befriend new Army enlistees and encourage them to apply for signature loans at area banks in order to build up their credit. Rosales further admitted to instructing them to place false residential and marital status information on loan applications in order to increase the loan amount enlistees could receive from the institution. After the loans were obtained and the checks cashed, Rosales insisted on retaining the majority of the loan proceeds, in his words, “for safekeeping.”
This investigation was conducted by the FBI and prosecuted by Assistant United States Attorney Mark Frazier.
Kansas City Man found Guilty of Defrauding Elderly VictimsRead the Press Release
United States Attorney Deborah R. Gilg announced that Thomas Whitlow, 53, formerly of Kansas City, Kansas, was convicted by a federal jury on November 18, 2014, of Conspiracy to Commit Wire Fraud and Wire Fraud, after a three-day trial.
Whitlow was indicted, along with four co-defendants, on the conspiracy and wire fraud charges in February of 2014. He is scheduled for sentencing on February 13, 2015. The maximum penalty that could be imposed is up to 20 years in prison, three years of supervised release, restitution to the victims, and a fine of up to $250,000. Three of Mr. Whitlow’s co-defendants have already pled guilty and have been sentenced, with a fourth scheduled to be sentenced on November 20, 2014.
Evidence presented at trial indicated that between May of 2011 and November of 2013, Whitlow was a member of a group which devised a conspiracy scheme to defraud elderly victims and to obtain money. As part of the scheme, Mr. Whitlow contacted the elderly victims, purporting to be a family relative, or a person acting on behalf of that relative. He then solicited money from the elderly victims under a false pretense, such as a motor vehicle accident or some other type of fabricated emergency. The victims were then instructed to obtain a money order and to have it sent to a specific person. The victims purchased money orders under the misguided notion that they were helping a family member. Over the course of this conspiracy, Whitlow and his co-defendants, obtained approximately $20,000.00 from their victims.
At trial, witnesses testified that Whitlow directed co-conspirators to send and receive proceeds of the scheme through wire transfers, including wire transfers conducted in the District of Nebraska. Once the wire transfers were received by the co-conspirators, the money would then be provided to Whitlow or used to pay expenses of Whitlow.
The matter was investigated by Homeland Security Investigations, United States Department of Homeland Security and the Lincoln Police Department.
Kansas City Man Sentenced to 216 Months for Trafficking Crack Cocaine Near PlaygroundRead the Press Release
KANSAS CITY, KAN. - A man from Kansas City, Mo., was sentenced Wednesday to 216 months in federal prison for trafficking crack cocaine near a playground in Kansas City, Kan., U.S. Attorney Barry Grissom said.
Arrick Warren, 29, Kansas City, Mo., pleaded guilty to two counts of distributing crack cocaine within 1,000 feet of Bethany Park playground in Kansas City, Kan., one count of possession with intent to distribute crack cocaine within 1,000 feet of the playground, and one count of maintaining a residence within 1,000 feet of the playground in furtherance of drug trafficking.
Warren initially was charged in June 2013 in U.S. District Court in Kansas City, Kan. A criminal complaint alleged investigators with the Kansas City, Kan., Police Department arranged to make two controlled buys of crack cocaine from Warren, who was dealing drugs from a residence at 1026 Reynolds Ave., in Kansas City, Kan. On Jan., 16, 2013, investigators served a search warrant at the house, where they seized drugs, more than $25,000 in cash and a .45 caliber pistol.
Grissom commended the Kansas City, Kan., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Special Assistant U.S. Attorney Erin Tomasic for their work on the case.
Justice Department’s Civil Rights Lawsuit Leads to Improved Conditions at Terrebonne Parish Juvenile Detention CenterRead the Press Release
Today, the Justice Department announced that its civil rights lawsuit involving the Terrebonne Parish Juvenile Detention Center in Houma, Louisiana, has resulted in improved conditions for the youth confined in the facility, and it asked the federal court to dismiss the case. Reforms Terrebonne Parish undertook over the past three years resulted in increased protections to prevent sexual abuse of youth by staff; reduce the use of isolation, inappropriate use of force and restraints by staff; to reduce physical abuse of youth by other youth; and to reduce suicide and other self-harming behavior.
In 2011, the department notified Terrebonne Parish officials that conditions at the detention center violated the constitutional rights of confined youth. Later that year, the department and Terrebonne Parish officials reached a settlement agreement to implement 43 specific substantive remedial measures to reform conditions at the facility. The parties appointed an independent monitor who closely monitored reform efforts and provided technical assistance to facility officials.
Although the settlement agreement pre-dated the Attorney General’s finalization of the National Standards to Prevent, Detect, and Respond to Prison Rape (PREA Standards), the required remedial measures incorporated several provisions eventually set forth in those Standards. For example, Terrebonne Parish began complying with PREA’s minimum staffing ratio requirements, ensuring that unannounced supervisory rounds were periodically conducted, established a zero-tolerance policy for sexual abuse, conducted post-incident reviews, ensured that all allegations of abuse were promptly investigated and referred to appropriate external investigative agencies, ensured that staff found to be violating agency policies were subject to formal discipline and trained all staff on sexual abuse identification and prevention practices.
In addition to remedial measures designed to eliminate sexual abuse of youth within the facility, the settlement also required several remedial measures to increase protections against suicide and other self-harming behavior, including a reduction in the facility’s over-reliance on isolation. For example, the settlement prohibited the routine use of isolation rooms for youth on suicide precautions, prohibited the use of isolation for all youth except where youth pose an imminent threat to themselves or others (or in rare cases where less severe disciplinary measures have proven ineffective), prohibited the use of any disciplinary isolation longer than 72 hours except in extraordinary circumstances and ensured that any use of isolation be accompanied by strict safeguards such as frequent youth welfare checks and frequent visits by clinicians. During the remedial action period, the facility proactively implemented an effective incentive-based behavior management program that rewarded youth for positive and pro-social behavior. In addition, the facility implemented and trained staff on Safe Crisis Management – a program for preventing and responding to disruptive behavior by youth. Implementation of these programs substantially reduced the frequency of serious incidents at the facility, and enabled facility-leadership to eliminate the use of sanctioned disciplinary isolation – an outcome that exceeded settlement agreement requirements.
In the spring of 2014, the monitor issued her fifth compliance report indicating that Terrebonne Parish had achieved substantial compliance with all required remedial measures in the settlement agreement. The department concurs with the monitor’s assessment.
During the course of the department’s investigation, including the enforcement period, Terrebonne Parish officials and the facility director have remained highly cooperative and steadfast in their commitment to improving conditions of confinement in the facility.
“We commend Terrebonne Parish for its commitment to protecting youth held in custody,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “These improvements will help to ensure the safety and security of all youth in the facility in a sustainable manner.”
“Rehabilitation of the district’s youth is the principal goal of juvenile justice and we are pleased that Terrebonne Parish has been diligent in remedying its facility,” said U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana. “These changes will help foster an environment where our at-risk youth can exit the juvenile justice system ready to positively contribute to their communities.”
The department initiated this investigation under the Violent Crime Control and Law Enforcement Act of 1994, which gives the department authority to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youth in juvenile justice institutions. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department's Civil Rights Lawsuit Leads to Improved Conditions at Terrebonne Parish Juvenile Detention CenterRead the Press Release
The Department Moves Court to Dismiss Civil Rights Case, Citing Reforms
Today, the Justice Department announced that its civil rights lawsuit involving the Terrebonne Parish Juvenile Detention Center in Houma, Louisiana, has resulted in improved conditions for the youth confined in the facility, and it asked the federal court to dismiss the case. Reforms Terrebonne Parish undertook over the past three years resulted in increased protections to prevent sexual abuse of youth by staff; reduce the use of isolation, inappropriate use of force and restraints by staff; to reduce physical abuse of youth by other youth; and to reduce suicide and other self-harming behavior.
In 2011, the department notified Terrebonne Parish officials that conditions at the detention center violated the constitutional rights of confined youth. Later that year, the department and Terrebonne Parish officials reached a settlement agreement to implement 43 specific substantive remedial measures to reform conditions at the facility. The parties appointed an independent monitor who closely monitored reform efforts and provided technical assistance to facility officials.
Although the settlement agreement pre-dated the Attorney General’s finalization of the National Standards to Prevent, Detect, and Respond to Prison Rape (PREA Standards), the required remedial measures incorporated several provisions eventually set forth in those Standards. For example, Terrebonne Parish began complying with PREA’s minimum staffing ratio requirements, ensuring that unannounced supervisory rounds were periodically conducted, established a zero-tolerance policy for sexual abuse, conducted post-incident reviews, ensured that all allegations of abuse were promptly investigated and referred to appropriate external investigative agencies, ensured that staff found to be violating agency policies were subject to formal discipline and trained all staff on sexual abuse identification and prevention practices.
In addition to remedial measures designed to eliminate sexual abuse of youth within the facility, the settlement also required several remedial measures to increase protections against suicide and other self-harming behavior, including a reduction in the facility’s over-reliance on isolation. For example, the settlement prohibited the routine use of isolation rooms for youth on suicide precautions, prohibited the use of isolation for all youth except where youth pose an imminent threat to themselves or others (or in rare cases where less severe disciplinary measures have proven ineffective), prohibited the use of any disciplinary isolation longer than 72 hours except in extraordinary circumstances and ensured that any use of isolation be accompanied by strict safeguards such as frequent youth welfare checks and frequent visits by clinicians. During the remedial action period, the facility proactively implemented an effective incentive-based behavior management program that rewarded youth for positive and pro-social behavior. In addition, the facility implemented and trained staff on Safe Crisis Management – a program for preventing and responding to disruptive behavior by youth. Implementation of these programs substantially reduced the frequency of serious incidents at the facility, and enabled facility-leadership to eliminate the use of sanctioned disciplinary isolation – an outcome that exceeded settlement agreement requirements.
In the spring of 2014, the monitor issued her fifth compliance report indicating that Terrebonne Parish had achieved substantial compliance with all required remedial measures in the settlement agreement. The department concurs with the monitor’s assessment.
During the course of the department’s investigation, including the enforcement period, Terrebonne Parish officials and the facility director have remained highly cooperative and steadfast in their commitment to improving conditions of confinement in the facility.
“We commend Terrebonne Parish for its commitment to protecting youth held in custody,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “These improvements will help to ensure the safety and security of all youth in the facility in a sustainable manner.”
“Rehabilitation of the district’s youth is the principal goal of juvenile justice and we are pleased that Terrebonne Parish has been diligent in remedying its facility,” said U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana. “These changes will help foster an environment where our at-risk youth can exit the juvenile justice system ready to positively contribute to their communities.”
The department initiated this investigation under the Violent Crime Control and Law Enforcement Act of 1994, which gives the department authority to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youth in juvenile justice institutions. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Files Enforcement Actions to Shut Down "Psychic" Mail Fraud SchemesRead the Press Release
The United States filed civil complaints in U.S. District Court for the Eastern District of New York today against individuals and entities alleged to be running two related multimillion-dollar mail fraud schemes. The United States also filed a motion seeking a temporary restraining order and a preliminary injunction to immediately put a stop to the ongoing schemes.
According to the complaints, the defendants operate two mail fraud schemes in which they send solicitation letters purportedly written by world-renowned psychics to consumers through the U.S. mail. The first scheme, operated by Destiny Research Center and the Canadian company Infogest Direct Marketing, sends direct mail solicitations allegedly written by psychics Maria Duval and Patrick Guerin. The second scheme, operated by Christine Moussu through New York companies CLGE Inc. and I.D. Marketing Solutions Inc., sends direct mail solicitations allegedly written by psychics David Phild, Sandra Rochefort, Antonia Donera and Nicholas Chakan.
“The complaints filed today charge that the companies and individuals made blatant misrepresentations in order to reap financial gain by scamming thousands of Americans, many of whom were elderly and in a vulnerable financial condition,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Our job at the Justice Department is to put a stop to fraud schemes that seek to take advantage of vulnerable Americans.”
The complaints allege that in the letters, the purported psychics state that they are contacting the recipient based on a specific vision or psychic reading revealing that the recipient has the opportunity to dramatically improve his or her financial circumstance, including claims of winning millions in the lottery. The solicitation letters appear personalized, repeatedly referring to the recipient by first name and often containing portions that appear handwritten. The solicitations urge victims to purchase various products and services in order to ensure that the foreseen good fortune comes to pass. The complaints allege that in reality, the solicitations are identical, mass- produced form letters. Victims responded to the solicitations by completing a form and submitting a payment, usually around $20 to $50, via U.S. mail. Victims often also wrote personal, handwritten letters back to the purported psychics, which were never opened, and received worthless, mass-produced trinkets and further solicitations after sending these payments.
“Relying on superstition and fear, the defendants defrauded tens of millions of dollars from thousands of vulnerable citizens,” said U.S. Attorney Loretta Lynch for the Eastern District of New York. “We have, and will continue to, use all means at our disposal to protect our citizens from such schemes to defraud.”
“These mass solicitations containing purportedly personalized messages to unsuspecting victims were blatant fraud,” said Acting Inspector in Charge Troy Raper of the U.S. Postal Inspection Service's Criminal Investigation Group. “Postal Inspectors aggressively investigate any operations that use the U.S. mail to fleece unsuspecting victims.”
Metro Data Management Inc., doing business as Data Marketing Group Ltd., a company on Long Island, New York, along with its president, Keitha Rocco, performed “caging” services on behalf of both mail fraud schemes. According to the complaint, these services consisted of processing victim payments and maintaining databases of consumers who responded to the fraudulent solicitations. The government alleges that Data Marketing Group processed as much as $500,000 in victim payments in a given two-week period for the Destiny Research Center scheme, resulting in annual gross receipts of at least $13 million. The CLGE scheme brought in annual revenue of $1.5 to $2 million. Evidence presented by the United States in support of its motion indicates that victims of the mail fraud schemes were elderly, ill and in perilous financial condition.
The government is seeking an injunction under the Anti-Fraud Injunction Statute immediately shutting down the fraudulent schemes in order to protect victims from further harm. The injunctions sought by the United States would enjoin the defendants from using the mail to distribute the fraudulent solicitations or to collect victim payments, and from selling lists of consumers who have responded to the solicitations. The injunctions would also authorize the U.S. Postal Service to detain any outgoing solicitations mailed by the defendants and any incoming responses to solicitations.
The Justice Department’s case is being handled by the Civil Division’s Consumer Protection Branch and the U.S. Postal Inspection Service, in coordination with the U.S. Attorney’s Office in the Eastern District of New York.
The claims made in the complaints are allegations only, and there has been no determination of liability.
Justice Department Files Enforcement Actions to Shut Down “Psychic” Mail Fraud SchemesRead the Press Release
WASHINGTON - The United States filed civil complaints in U.S. District Court for the Eastern District of New York today against individuals and entities alleged to be running two related multimillion-dollar mail fraud schemes. The United States also filed a motion seeking a temporary restraining order and a preliminary injunction to immediately put a stop to the ongoing schemes.
According to the complaints, the defendants operate two mail fraud schemes in which they send solicitation letters purportedly written by world-renowned psychics to consumers through the U.S. mail. The first scheme, operated by Destiny Research Center and the Canadian company Infogest Direct Marketing, sends direct mail solicitations allegedly written by psychics Maria Duval and Patrick Guerin. The second scheme, operated by Christine Moussu through New York companies CLGE Inc. and I.D. Marketing Solutions Inc., sends direct mail solicitations allegedly written by psychics David Phild, Sandra Rochefort, Antonia Donera and Nicholas Chakan.
“The complaints filed today charge that the companies and individuals made blatant misrepresentations in order to reap financial gain by scamming thousands of Americans, many of whom were elderly and in a vulnerable financial condition,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Our job at the Justice Department is to put a stop to fraud schemes that seek to take advantage of vulnerable Americans.”
The complaints allege that in the letters, the purported psychics state that they are contacting the recipient based on a specific vision or psychic reading revealing that the recipient has the opportunity to dramatically improve his or her financial circumstance, including claims of winning millions in the lottery. The solicitation letters appear personalized, repeatedly referring to the recipient by first name and often containing portions that appear handwritten. The solicitations urge victims to purchase various products and services in order to ensure that the foreseen good fortune comes to pass. The complaints allege that in reality, the solicitations are identical, mass- produced form letters. Victims responded to the solicitations by completing a form and submitting a payment, usually around $20 to $50, via U.S. mail. Victims often also wrote personal, handwritten letters back to the purported psychics, which were never opened, and received worthless, mass-produced trinkets and further solicitations after sending these payments.
“Relying on superstition and fear, the defendants defrauded tens of millions of dollars from thousands of vulnerable citizens,” said U.S. Attorney Loretta Lynch for the Eastern District of New York. “We have, and will continue to, use all means at our disposal to protect our citizens from such schemes to defraud.”
“These mass solicitations containing purportedly personalized messages to unsuspecting victims were blatant fraud,” said Acting Inspector in Charge Troy Raper of the U.S. Postal Inspection Service's Criminal Investigation Group. “Postal Inspectors aggressively investigate any operations that use the U.S. mail to fleece unsuspecting victims.”
Metro Data Management Inc., doing business as Data Marketing Group Ltd., a company on Long Island, New York, along with its president, Keitha Rocco, performed “caging” services on behalf of both mail fraud schemes. According to the complaint, these services consisted of processing victim payments and maintaining databases of consumers who responded to the fraudulent solicitations. The government alleges that Data Marketing Group processed as much as $500,000 in victim payments in a given two-week period for the Destiny Research Center scheme, resulting in annual gross receipts of at least $13 million. The CLGE scheme brought in annual revenue of $1.5 to $2 million. Evidence presented by the United States in support of its motion indicates that victims of the mail fraud schemes were elderly, ill and in perilous financial condition.
The government is seeking an injunction under the Anti-Fraud Injunction Statute immediately shutting down the fraudulent schemes in order to protect victims from further harm. The injunctions sought by the United States would enjoin the defendants from using the mail to distribute the fraudulent solicitations or to collect victim payments, and from selling lists of consumers who have responded to the solicitations. The injunctions would also authorize the U.S. Postal Service to detain any outgoing solicitations mailed by the defendants and any incoming responses to solicitations.
The Justice Department’s case is being handled by the Civil Division’s Consumer Protection Branch and the U.S. Postal Inspection Service, in coordination with the U.S. Attorney’s Office in the Eastern District of New York.
The claims made in the complaints are allegations only, and there has been no determination of liability.
Justice Department Collects More Than $24 Billion in Civil and Criminal Cases in Fiscal Year 2014Read the Press Release
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And it shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
The amount is more than three times the $8 billion collected in FY 2013. The largest civil collections were from affirmative civil enforcement cases, many of which were brought under the whistleblower provisions of the False Claims Act, in which the United States recovered government money lost to fraud or other misconduct or collected from individuals and/or corporations for violations of federal health, safety, civil rights, tax, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes approximately $13.7 billion in payments made directly to the Justice Department, and $11 billion in indirect payments made to other federal agencies, states and other designated recipients.
In measuring collections recovered in FY 2014, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2014.
The largest single source of collections came from civil penalties paid by financial institutions to resolve financial fraud claims stemming from the 2008 financial crisis, including significant amounts paid by JPMorgan and Citigroup Inc, to resolve federal and state civil claims related to the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS). Both resolutions include record penalties under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and in addition, also provide billions of dollars of relief to struggling homeowners.
Department collections also included hundreds of millions in fines from an ongoing investigation into institutions involved in the manipulation of the London Interbank Offered Rate (LIBOR), including UBS Securities Japan Co. Ltd., and RBS Securities Japan Ltd., a wholly owned subsidiary of The Royal Bank of Scotland plc (RBS). Hundreds of millions in additional collections resulted from the department’s ongoing investigation into international price-fixing and bid rigging in the auto parts industry. For instance, Bridgestone Corp., a company based in Tokyo, Japan, agreed to plead guilty and to pay a criminal fine for its role in a conspiracy to fix prices of automotive anti-vibration rubber parts installed in cars sold in the United States and elsewhere.
The department continued to make polluters pay to safeguard the environment and the taxpayer, collecting several multi-million dollar payments in connection with environmental cleanups. This included a May 2014 settlement with Titanium Metals Corporation (TIMET) under which the titanium-parts manufacturer paid $14 million in civil penalties under the Toxic Substances Control Act (TSCA) and the Resource Conservation and Recovery Act (RCRA) and agreed to perform an extensive cleanup following the unauthorized manufacture and disposal of PCBs (polychlorinated biphenyls) at its manufacturing facility in Henderson, Nevada.
The department also collected millions in criminal penalties after resolving investigations into violations of the Foreign Corrupt Practices Act (FCPA). For instance, Diebold Inc., an Ohio-based provider of integrated self-service delivery and security systems, pleaded guilty to violating the FCPA by bribing government officials in China and Indonesia and falsifying records in Russia in order to obtain and retain contracts to provide ATMs to state-owned and private banks in those countries.
Jury Convicts Millvale Police Officer on Civil Rights ChargeRead the Press Release
PITTSBURGH - After deliberating approximately four hours, a federal jury found Nicole Murphy guilty of deprivation of rights under color of law, United States Attorney David J. Hickton announced today.
U.S. Attorney Hickton said, “Law enforcement officers are sworn to uphold and obey the law. Nicole Murphy did neither when she used a dangerous weapon to subdue a handcuffed defendant, thereby violating his civil rights.”
Murphy, 30, was tried before United States District Judge Arthur J. Schwab in Pittsburgh, Pennsylvania.
According to Assistant United States Attorneys Carolyn J. Bloch and Cindy Chung, who prosecuted the case, the evidence presented at trial established that Murphy, on Sept. 21, 2012, while acting under color of law as a police officer with the Millvale Police Department, deprived an individual identified as Thomas Smith of the constitutional right to be free from unreasonable force, by deploying a taser in both drive and probe-stun modes on Smith’s person while he was handcuffed behind his back and seated on the floor of the squad room at the Millvale Police Department.
Judge Schwab scheduled sentencing for March 13, 2015, at 10 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant on bond.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Murphy.
Jury Convicts KC Man of Bank Robbery, Attempted Casino RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted by a federal trial jury today of robbing a bank and attempting to rob a casino.
James T. Smith, 62, of Kansas City, was found guilty of both counts contained in an April 29, 2014 federal indictment.
Evidence introduced during the trial indicated that Smith used a demand note to steal $1,053 from Commerce Bank, 118 W. 47th Street, Kansas City, Mo., on May 18, 2013. Just after midnight the next morning, Smith threatened a cashier in an unsuccessful attempt to rob the Isle of Capri Casino, 1800 E. Front St., Kansas City, Mo. In both instances, Smith used a demand note and verbally threatened to blow up the bank and casino with nitroglycerin.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about one and a half hours before returning the verdicts to U.S. District Judge Dean Whipple, ending a trial that began Monday, Nov. 17, 2014.
Under federal statutes, Smith is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $500,000. 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. Attorneys Christina Y. Tabor and Justin Davids. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Missouri State Highway Patrol, Gaming Division.Jury Convicts Dayton Man of Buying Stolen Identities Online, Filing False Income Tax Returns, and Access Device FraudRead the Press Release
DAYTON – A United States District Court jury convicted Lance Ealy, 28, of Dayton, of buying stolen identities online and using the identities to file more than 150 fraudulent federal income tax returns seeking refunds to which he was not entitled.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the verdict reached today which was returned following an 11-day trial that began on November 3 before U.S. District Judge Michael Barrett.
According to court testimony, between approximately January 2013 and October 2013, Ealy electronically filed at least 150 fraudulent federal income tax returns, including returns filed using the personal information of others that he had unlawfully acquired from an illicit online source. Ealy opened dozens of bank accounts at multiple financial institutions using the names and social security numbers of other individuals – without their knowledge or permission – in order to electronically deposit the fraudulent tax refunds.
The jury convicted Ealy of 46 charges, including one count of illegally possessing 15 or more unauthorized access devices, 11 counts of filing false claims for income tax refunds with the IRS, 14 counts of wire fraud, 14 counts of aggravated identity theft, one count of mail fraud, and one count of using unauthorized access devices to obtain $1,000 or more in a one-year period. An access device includes things such as payment cards and bank account numbers used to access financial accounts.
Ealy faces up to 10 years in prison on each count of possessing 15 or more unauthorized access devices with intent to defraud and using unauthorized access devices to obtain items of $1,000 or more in value; up to five years in prison on each count of filing false claims for income tax refunds with the IRS; up to 20 years in prison on each count of wire fraud and each count of mail fraud; and mandatory two-year sentences on each count of aggravated identity theft that must run consecutive to whatever sentence may ultimately be handed down. Each count of conviction also carries a fine of up to $250,000.
Ealy was initially charged in a federal complaint filed on October 28, 2013 following an investigation by Secret Service agents that revealed that Ealy had purchased stolen identities from an illicit online source. A federal grand jury initially indicted Ealy in November 2013, charging him with one count of knowingly possessing 15 or more access devices with intent to defraud.
“Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law,” stated Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “We, along with our law enforcement partners and the United States Attorney's Office, continue to do our part in protecting the integrity of the tax system and those individuals whose identities were stolen.”
Ealy became a fugitive this past weekend, after he removed his electronic monitoring device and fled while under bond conditions. Judge Barrett has issued a warrant for Ealy’s arrest. Ealy remains at large and the public is asked to contact the United States Marshal at 937-225-2917 with reliable information regarding Ealy’s whereabouts.
U.S. Attorney Stewart commended the investigation of this case by Secret Service and IRS-Criminal Investigation agents and Assistant U.S. Attorneys Alex R. Sistla and Andrew J. Hunt, who are prosecuting the case.
International Drug Dealer Sentenced to Fifteen YearsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court, Chief United States District Judge James C. Dever III sentenced ANDREW WAYNE LANDELLS , 47, of Jamaica, to 180 months imprisonment, followed by three years of supervised release.
LANDELLS was named in a three count, Criminal Indictment filed on May 15, 2013 charging him with one count of Conspiracy to Launder Monetary Instruments and two counts of Money Laundering and Aiding and Abetting. On September 30, 2013, LANDELLS pled guilty to Count 1, Conspiracy to Launder Monetary Instruments in violation of Title 18, United States Code, Section 1956(h).
According to the investigation, ANDREW WAYNE LANDELLS directed the activities of his estranged wife, and at least seven coconspirators to assist him in the trafficking of marijuana and laundering of drug proceeds from 2002 until April 2012. The investigation revealed that from 2002 to 2012, the defendant was involved in the trafficking of marijuana from Mexico throughout, New York, Florida, Virginia, Arizona, and North Carolina. The defendant then used the drug proceeds to purchase luxury vehicles and residences, and to rent residences in others’ names. LANDELLS used numerous residences across the country to store the drugs. Additionally, he maintained storage units and United Parcel Service mail boxes in Raleigh, North Carolina; West Palm Beach, Florida; Cary, North Carolina; and Wellington, Florida, for purposes of storing illegal substances and furthering his illegal activities.
In order to disguise the source of the proceeds from his illegal activities, LANDELLS also operated sham companies purporting to be in the candle manufacturing business. He established the following business fronts to facilitate the laundering of drug proceeds: Olufina Candle in Durham; LuGhan in Durham; Heru in Durham; and Botanica Olomi in Raleigh. To date, there is no evidence of any actual revenue from candle manufacturing. LANDELLS used numerous aliases, dates of birth, Social Security numbers, driver’s licenses, and passports to avoid detection by law enforcement as he was wanted by authorities in multiple states, having escaped from a hospital in New York following an arrest for passport fraud when he was intercepted on a flight from England to the United States using a fraudulent passport in 1999. LANDELLS had also been federally indicted in the Eastern District of Virginia on drug charges in 1989; however those charges were eventually dismissed due to the inability to locate LANDELLS. Furthermore, he has pending charges in New York for felonious counts of Criminal Possession of a Weapon, Possession of a Loaded Firearm, and Reckless Endangerment. Agents recovered multiple alias identifications for LANDELLS in two storage units in Raleigh. Co-conspirators in the scheme further reported that LANDELLS obtained, used, and also provided them with false driver’s licenses, birth certificates, and Social Security numbers to facilitate the offense.
At sentencing, LANDELLS was held accountable for the distribution of up to 1,000 kilograms of marijuana. He was held accountable for laundering money from drug proceeds through the straw purchase of at least seven pieces of real property, thirteen motor vehicles, and four businesses, all with a combined value of over $1,000,000.00. Additionally, LANDELLS possessed firearms during his drug-trafficking activities, maintained premises to store marijuana for the purpose of distribution and the Court found that he maintained an aggravating role in the offense by directing the activities of more than five participants to assist him in the trafficking of marijuana and laundering of drug proceeds from 2002 to April 2012.
As a result of this case, the Government has seized and forfeited a 2005 BMW motorcycle, 2004 BMW 645 automobile, 2006 Bentley Flying Spur, 2011 Mercedes Benz C300W, 2006 Rolls Royce Phantom, a home located at 12716 Richmond Run Drive in Raleigh, NC, custom candle-making equipment, a Yamaha Clavinova piano and over $51,700 in United States currency, which has allowed the United States to recover approximately $1,298,004.64 to date. As part of the sentence, the Court entered a money judgment against LANDELLS in the amount of $1,000,000 and forfeited his interest in several properties located in New Jersey and Florida.
Investigation of this case was conducted by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation as part of the High Intensity Drug Trafficking Area (HIDTA) initiative. The United States Marshals Service assisted with the forfeiture of assets.
“Today’s sentencing illustrates that while the road to justice may sometimes be long, it is certain”, said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “LANDELLS operated as a high-level drug trafficker for many years, reaping the profits of his illegal activity, and now the time for him to pay for his crimes has arrived. The tireless efforts of the case agents and our law enforcement partners in bringing LANDELLS to justice, and recovering the assets he obtained through his criminal activity are to be commended.”
DEA ASAC, William F. Baxley commented on the sentencing, “Drug traffickers utilize a multitude of sophisticated methods in which to hide their assets. One of DEA’s highest priorities is to relentlessly pursue and destroy these drug trafficking and money laundering organizations. This global drug trafficking and money laundering investigation was a success because of the local, regional, national, and foreign law enforcement partnerships and our commitment to bring this organization to justice in the United States.”
Special Assistant United States Attorney Augustus Willis represented the government. Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. District Attorney Scott Thomas has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Wills’ position is funded through a grant provided by the Governor’s Crime Commission. Assistant United States Attorneys Joshua Royster and Steve West assisted with the forfeiture proceedings.
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 Strong in Great Falls on November 20, 2014, and entering pleas of Not Guilty were:
• HARVEY RICHARD BRANDEN, a 37-year-old resident of Kalispell, appeared on charges of conspiracy to possess with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, BRANDEN faces life in prison, $10,000,000 in fines and 5 years supervised release. The investigation is a cooperative effort between the Russell Country Drug Task Force which includes law enforcement officers from the Great Falls Police Department, Cascade County Sheriff’s Office, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the U.S. Border Patrol, as well as the Montana Division of Criminal Investigation, Tri-Agency Task Force and U.S. Internal Revenue Service. PACER Case Reference: 14-96
• THEODORA ANN MORSETTE, a 60-year-old resident of Box Elder, appeared on charges of theft from an Indian tribal government receiving federal funds, theft from an Indian tribal organization and theft from a health care facility. If convicted of the most serious charges contained in the indictment, MORSETTE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference: 14-99
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.
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 November 19, 2014, and entering pleas of Not Guilty were:
KELLY STEEN, a 50-year-old resident of Baker, appeared on charges of transportation of hazardous materials without placards and transportation of hazardous materials with improper transportation documents. If convicted of the most serious charge contained in the indictment, STEEN faces 5 years in prison and $250,000 in fines. The case was investigated by the Environmental Protection Agency and the Department of Transportation Office of Inspector General. PACER Case Reference: 14-111
Appearing before U.S. Magistrate Judge Ostby in Billings on November 17, 2014, and entering pleas of Not Guilty were:
THOMAS EDELMAN, a 33-year-old resident of Bridger, appeared on charges of felon in possession of firearm, fugitive in possession of firearms, and possession of stolen firearms. If convicted of the most serious charges contained in the indictment, EDELMAN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference: 14-104
Appearing before U.S. Magistrate Judge Ostby in Billings on November 14, 2014, and entering pleas of Not Guilty were:
EDWIN CHARLES FALCON, a 54-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, FALCON faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-60
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.
Indictment: Postal Employee Stole Rx Drugs from MailRead the Press Release
TOPEKA, KAN. – A Topeka postal employee was indicted Wednesday on a federal charge of stealing prescription medications from the mail, U.S. Attorney Barry Grissom said.
Terry D. Ricley, 44, Burlingame, Kan., who worked sorting mail at the Topeka Post Office North Station, was charged with one count of theft by a postal employee. The indictment alleged he stole Hydrocodone and Tramadol being delivered by mail.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The U.S. Postal Service - OIG investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
OTHER INDICTMENTS
Daeshawn Lavar Bryant, 19, who is in custody in the Riley County Jail, is charged with one count of being an accessory after the fact to a robbery of a commercial business. The indictment alleges that on April 16, 2014, he provided assistance to a person who committed a robbery.
In September, Christopher James Wilhoite pleaded guilty to two counts of commercial robbery and one count of unlawful possession of a firearm in furtherance of a robbery. It is alleged Bryant aided and abetted Wilhoite in connection with an April 16, 2014, robbery at the Dollar General store at 2321 Tuttle Creek Boulevard in Manhattan, Kan.
If convicted, Bryant faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Riley County Police Department, the Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Imperial Sand Dunes Storage Firm and Owner Plead Guilty to Illegal Disposal of Untreated Human Waste and SewageRead the Press Release
SAN DIEGO - Glamis Dunes Storage Inc. and its owner, Michael Mamelli, Sr., pleaded guilty today to the illegal underground disposal of potentially millions of gallons of untreated human waste and sewage at the Glamis Dunes Storage site for more than four years, in violation of the Safe Drinking Water Act. The Glamis Dunes site is located off of Highway 78 in Imperial County, and advertises storage services near the Imperial Sand Dunes Recreation Area.
The defendants admitted at today’s hearing that in August of 2007, Glamis Dunes Storage obtained a conditional use permit from Imperial County to install and operate a 20,000 gallon holding tank for RV waste (including human waste and grey water) at the facility. When acquiring the permit, Glamis Dunes Storage represented that the wastewater would be pumped out by a licensed septage hauler and disposed of at the Holtville wastewater treatment plant. According to Glamis Dunes Storage, the holding tank could be expected to dispose of approximately 1,250,000 gallons of RV sewage and grey water per year. The permit specifically prohibited any underground leach system attached to the holding tank.
As the defendants admitted, however, between February 16, 2010, and March 12, 2010, the defendants arranged for a contractor to build a leach field in the rear of the property, install a pump in the RV holding tank, and connect a pipe directly from the RV holding tank out to the leach field. The defendants also arranged for the power connection for the pump to be concealed under gravel near the RV holding tank. Thereafter, they admitted that they repeatedly disposed of the human waste and sewage from the RV holding tank by activating the pump and discharging the sewage through the underground leach field.
The defendants acknowledged that between August and October of 2012, they had a contractor add a new pump and two 2,500 gallon tanks in series to the pipe connecting the RV holding tank to the leach field. The defendants continued to illegally dispose of the sewage in the RV holding tank by discharging it through the underground tanks and leach field without a permit or other authorization from the EPA.
The defendants agreed to forfeiture of the sum of $50,000, as the proceeds of the offense, and to make restitution to the Bureau of Land Management and the Imperial County Department of Environmental Health and to fund the restoration of the site to the satisfaction of the Imperial County Department of Environmental Health.
Michael Mamelli and Glamis Dunes Storage, Inc. are scheduled to appear before U.S. District Court Judge William Q. Hayes on February 17, 2015, at 9:00 a.m. for sentencing.
DEFENDANTS Case Number: 14-CR-1766-WQH Glamis Dunes Storgage, Inc. Inc., 2006 Glamis, California Michael J. Mamelli, Sr. Age: 63 Newport Beach, California CHARGESUnlawful Injection of Pollutants, a felony, in violation of Title 42, United States Code, Section 300h-2(b)(2)
Maximum Penalty for Individual: Three years in prison; up to $250,000 fine or twice the illegal gain or loss, whichever is greater.
Maximum Penalty for corporation: Fine of up to $500,000.
INVESTIGATING AGENCYEnvironmental Protection Agency, Criminal Investigations Division
Bureau of Land ManagementHunters in Kansas Plead Guilty to Violating Migratory Bird ActRead the Press Release
WICHITA, KAN. – Seven hunters in Kansas pleaded guilty and were sentenced Wednesday for violating the Migratory Bird Treaty Act, U.S. Attorney Barry Grissom said.
The men admitted they violated the federal law protecting migratory birds when they participated in an annual opening weekend dove hunt in Graham County, Kan., on Sept. 1-2, 2013.
The Migratory Bird Treaty Act classifies mourning doves as migratory game birds. It classifies owls as migratory non-game birds. Restrictions on hunting mourning doves include a daily bag limit of 15 and a possession limit of three times the daily bag limit.
PLEAS
Defendants pleading and sentenced were:
Daniel R. Dinkel, 63, Hill City, Kan., one count of exceeding the daily bag limit for mourning doves.
Kent A. Webber, 52, Derby, Kan., one count of exceeding the daily bag limit for mourning doves, and one count of taking an owl.
Evan Webber, 25, Derby, Kan., one count of exceeding the daily bag limit for mourning doves, and one count of taking an owl.
Kenneth R. Beran, 67, Derby, Kan., one count of exceeding the daily bag limit for mourning doves.
Clark Law, 57, Hill City, Kan., one count of exceeding the daily bag limit for mourning doves.
Tracy D. Higgins, 54, El Dorado, Kan., one count of exceeding the daily bag limit for mourning doves, and one count of taking an owl.
John Kobler, 62, Topeka, Kan., one count of exceeding the daily bag limit for mourning doves.Another defendant, George Morgan, 52, Gordonville, Texas, who is charged with one count of exceeding the daily bag limit for mourning doves, is set for a change of plea hearing Nov. 24.
SENTENCES
Dinkel, Kobler, Law and Beran were sentenced to a year on probation in which they are not allowed to hunt, fish or trap, a $2,000 fine, and $3,000 restitution to the state of Kansas.
Kent Weber, Evan Weber and Higgins were sentenced to two years on probation in which they are not allowed to hunt, fish or trap, a $2,000 fine and $5,000 restitution.
Grissom commended the U.S. Fish and Wildlife Service investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
- Humble Woman Indicted in Second Fraud Scheme
Houma Man is Convicted of Drug Distribution ChargeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that today a federal jury convicted, DONALD RICHARDSON, age 36, of Houma, Louisiana, of distribution of a quantity of cocaine base (“crack”).
RICHARDSON was charged in a two-count indictment, alleging that on March 17, 2011, and March 23, 2011, RICHARDSON distributed a quantity of crack. After a two-day trial before U.S. District Judge Sarah S. Vance, a jury returned a guilty verdict against RICHARDSON for the March 23, 2011 distribution charge.
RICHARDSON faces a maximum term of imprisonment of twenty years, a maximum fine of $1,000,000, three years of supervised release after imprisonment, and a $100 special assessment. Judge Vance set sentencing for March 4, 2015.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Terrebonne Parish Department’s Narcotics Unit in investigating this matter. Assistant United States Attorney Andre’ Jones and Special Assistant United States Attorney Brian C. Ebarb were in charge of the prosecution.
Hospice Company Owner Found Guilty of Committing Medicare Fraud, Conspiracy, Obstruction of Federal Audit, and Making False StatementsRead the Press Release
Oklahoma City, Oklahoma – A federal jury in Oklahoma City found PAULA KLUDING, 39, from Chandler, Oklahoma, the owner of Prairie View Hospice, Inc., an Oklahoma corporation located in Chandler, guilty on 39 separate counts relating to Medicare fraud, conspiracy, obstruction of a federal audit, and making false statements in health care matter, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
PATRICIA CARTER, 43, from Tecumseh, Oklahoma, was the general manager of Prairie View Hospice and was indicted along with Kluding in this case. Carter pled guilty on November 3, 2014, to one count of obstruction of a federal audit and testified at the trial.
According to evidence presented at trial, Prairie View Hospice was in business to provide hospice care to Medicare beneficiaries. Hospice care consists of providing health care, medication, medical equipment, and other goods and services to terminally ill patients. From July of 2010 through July of 2013, Kluding conspired with others to conceal the true medical condition of Prairie View Hospice’s patients and the true quality and quantity of health care services they were receiving in order to “pass” a Medicare audit and to fraudulently obtain money from Medicare. Specifically, certain medical documents were falsified to make it appear that nurses had visited patients or conducted necessary assessments when such visits and assessments had not, in fact, been made. Nursing notes were also falsified to make it appear that patients were in worse health than they actually were in order to justify to Medicare the patient’s continued hospice care. In addition, Prairie View Hospice, acting through Kluding, sent the falsified documents to a Medicare subcontractor in response to requests to audit patient files and in support of claims for Medicare reimbursement.
The trial lasted for four and half days and the jury deliberated about six hours before returning a guilty verdict on all counts.
At sentencing, Kluding faces up to 5 years imprisonment and a fine of $250,000 on each count, as well as paying restitution to the government. Carter faces 5 years imprisonment and a fine of $250,000. The government also seeks forfeiture of all proceeds obtained by Kluding from the criminal acts. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Amanda Maxfield Green and Jessica Perry.
Hong Kong Man Pleads Guilty to Conspiracy to Smuggle Turtles out of the United States and to Violation of the Lacey ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HON KIT LAU, age 34, from Hong Kong, pled guilty today to a one-count superseding Bill of Information charging him with conspiring to smuggle turtles out of the United States and to violate the Lacey Act.
According to the superseding Bill of Information, LAU was part of a group of individuals involved in capturing the threatened species of North American Wood turtles from the wild, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong.
U.S. District Court Judge Helen G. Berrigan scheduled sentencing for February 25, 2015. LAU faces a maximum term of five years in prison, a fine of $250,000, and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Honduran National Pleads Guilty to Illegal Re-Entry of a Removed AlienRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MELVIN JOSUE AVELAR-CASTRO (“AVELAR”), age 34, a citizen of Honduras, pled guilty today to one-count of illegal re-entry of a removed alien.
According to court documents, AVELAR was arrested by Immigration and Customs Enforcement (“ICE”) agents at a residence in Metairie, Louisiana. The arrest followed an investigation by ICE agents which determined that AVELAR was illegally present in the United States. AVELAR had been convicted of re-entry of a removed alien on two previous occasions.
AVELAR faces a maximum term of imprisonment of ten years on the illegal re-entry charge, a fine of $250,000 and up to three years of supervised release following any term of imprisonment. U.S. District Judge Martin L.C. Feldman scheduled sentencing on March 18, 2015.
U.S. Attorney Polite praised the work of U.S. Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Michael M. Simpson is in charge of the prosecution.
Honduran Man Sentenced for Violating the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SANTOS GAVARRETE-NATAREN, 36, a native of Honduras, pled guilty today to knowingly delivering a firearm to a common carrier without written notice.
According to court documents, on or about December 2, 2013, Dip Shipping, a common carrier based in Kenner, Louisiana, received a plastic container for international shipment at its West Bank drop-off location. The container was purportedly from Alfredo Barahona, addressed to Yessenia Martinez in Yoro, Honduras. The shipping label noted that the shipment contained kitchen items and shoes.
While scanning packages with a company owned X-ray machine, a Dip Shipping employee observed the image of two firearms inside the container. On December 9, 2013, HSI Special Agents were notified of the discovery and responded to Dip Shipping. Upon inspecting the container, the agents discovered that it contained a Smith & Wesson model 642, .38 revolver (SN: CJJ4544) and a Lorcin model L380, .380 semi-automatic handgun (SN: 125407).
HSI agents determined that GAVARRETE shipped the package. GAVARRETE admitted that he did not apply for an export license to ship the firearms. Further, he did not advise Dip Shipping that the package contained firearms.
U.S. District Judge Kurt D. Engelhardt scheduled sentencing for February 4, 2015. GAVARRETTE faces a maximum of 5 years imprisonment and a maximum fine of $250,000.
U.S. Attorney Polite praised the work of the Homeland Security Agents investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of prosecuting this case.
Honduran Man Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney A. Kenneth Polite announced that ELVIS CANO-MORALES, age 33, a citizen of Honduras, pled guilty today to a one-count indictment for illegal reentry of a removed alien.
According to court documents, CANO-MORALES was found in the United States on August 1, 2014, after having been previously removed from the United States on June 10, 2011.
CANO-MORALES faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Judge Stanwood R. Duval set sentencing for January 28, 2015.
U.S. Attorney Polite praised the work of the U.S. Customs and Border Patrol in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Homer Man Sentenced to 38 Months in Prison for Stealing more than $59,000 from EmployerRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that a Homer man was sentenced to 38 months in prison for stealing more than $59,000 from his Claiborne Parish employer’s bank account.
John Bob Jr., 47, of Homer, La., was sentenced by U.S. District Judge Elizabeth E. Foote for one count of bank fraud and one count of aggravated identity theft. He was also sentenced to five years of supervised release and ordered to pay $58,248 restitution. According to the evidence presented at the July 15, 2014 guilty plea, the defendant used his employer’s debit card and personal identification number to make approximately 200 withdrawals totaling $59,602 from May 2012 to July 2013 from banks across northwest Louisiana.
The FBI and Claiborne Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.Happy's Pizza Founder Convicted of Multi-Million Dollar Tax Fraud SchemeRead the Press Release
On November 19, in the U.S. District Court for the Eastern District of Michigan, a federal jury after deliberating 4.5 hours convicted the president and founder of Happy’s Pizza of conspiracy to defraud the United States and 32 counts of tax crimes, the Justice Department announced today.
Happy Asker’s convictions include three counts of filing false federal individual tax returns for the years 2006 through 2008, 28 counts of aiding and assisting the filing of false federal income and payroll tax returns for several Happy’s Pizza Franchises restaurants for the years 2006 through 2009, and one count of engaging in a corrupt endeavor to obstruct and impede the administration of the Internal Revenue Code.
During trial, the evidence established that Asker was the president, founder and public face of the Farmington Hills, Michigan, based Happy’s Pizza franchise. He also had ownership interests in several Happy’s Pizza franchises located in Michigan, Ohio and Chicago. From June 2004 through April 2011, Asker, along with certain franchise owners and employees, executed a systematic and pervasive tax fraud scheme to defraud the Internal Revenue Service (IRS). Gross sales and payroll amounts were substantially underreported to the IRS on numerous individual corporate income tax returns and payroll tax returns submitted for nearly all 60 Happy’s Pizza franchise restaurants located in Michigan, Ohio and Illinois. Evidence admitted at trial established that from 2008 to 2010, more than $6.1 million in cash gross receipts were diverted from approximately 35 different Happy’s Pizza stores in the Detroit area, Illinois and Ohio. In total, the evidence at trial established that Asker and certain employees and franchise owners failed to report to the IRS approximately $3.84 million of gross income from the various Happy’s Pizza franchises and approximately $2.39 million in payroll. The evidence at trial further established that a portion of this unreported income was shared among most of the franchise owners, including Asker, in a weekly cash “profit split.” The cash was distributed among the investors and managers of the relevant franchises. The IRS is owed more than $6.2 million in taxes as a result of this fraud scheme.
The evidence at the two-week trial also established that Asker purposely misled IRS-Criminal Investigation special agents during voluntary interviews conducted on Nov. 5, 2010, and Dec. 1, 2010. Asker denied knowing co-defendant Arkan Summa, a convicted felon, and did not disclose Summa’s association with a number of Happy’s Pizza franchise restaurants. Documents admitted during trial indicate Summa shared in diverted gross receipts from at least one Happy’s Pizza franchise in Toledo, Ohio.
Four other defendants in the case pleaded guilty prior to Asker’s trial. On October 23, Maher Bashi, who served as Happy’s Pizza’s corporate chief operating officer, and Tom Yaldo, an owner of numerous Happy’s Pizza franchises, pleaded guilty to conspiracy to defraud the United States. According to the indictment, their conduct included, among other things, creating and maintaining fraudulent accounting records and falsely reporting income taxes and payroll taxes. On July 15, Summa pleaded guilty to engaging in a corrupt endeavor to obstruct and impede the due administration of the IRS, and Tagrid Summa, who is identified as a Happy’s Pizza franchise owner in documents admitted during trial, pleaded guilty to providing false documents to the IRS.
At sentencing, Happy Asker faces a statutory maximum sentence of five years in prison and a $250,000 fine for conspiracy to defraud the government. The charges of filing a false income tax return and aiding or assisting in filing a false return carry a statutory maximum sentence of three years in prison and a fine of $250,000 for each count. The obstruction charge carries a statutory maximum sentence of three years in prison and a fine of $250,000. Asker’s sentencing is scheduled for March 5, 2015, in the Eastern District of Michigan.
The case was investigated by special agents from IRS-Criminal Investigation and the Drug Enforcement Agency. Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald for the Justice Department’s Tax Division prosecuted the case.
Hamden Woman Admits Stealing Deceased Mother’s Social Security Benefits for Nearly 30 YearsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SANDRA KIMBRO, 66, of Hamden, waived her right to indictment and pleaded guilty today in Hartford federal court to one count of theft of public funds.
According to court documents and statements made in court, KIMBRO’s mother, a Social Security benefits recipient, died in 1984. At the time of her death, KIMBRO and her mother had a jointly-held bank account into which the mother’s monthly Social Security benefits were deposited. Between April 1984 and February 2014, KIMBRO illegally obtained $160,457 in Social Security benefits that had been deposited into the account for her mother’s use. Through the years, as she withdrew money from the bank account, KIMBRO described to bank employees how she was providing care to her mother.
KIMBRO is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on February 11, 2015, at which time she faces a maximum term of imprisonment of 10 years, a fine of up to $250,000 and an order of restitution.
This matter is being investigated by the Social Security Administration, Office of Inspector General – Office of Investigations, and is being prosecuted by Assistant U.S. Attorney Ray Miller.
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Tom Carson
(203) 821-3722 [email protected]Grand Jury Indicts Man Who Possessed Gun During Apartment Break-InRead the Press Release
PITTSBURGH – A former resident of Lawrence County and current resident of McKees Rocks, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Nov. 18, named Antron Jamal Talley, a/k/a Marvin Talley, 37, as the sole defendant.
According to the indictment, Talley possessed a firearm and/or ammunition on or about August 28, 2013, after having been convicted at eight different case numbers of crimes punishable by more than two years in prison. Those convictions include two separate prior firearm charges and seven different Aggravated Assault counts. Previously filed Court documents indicate that Talley was caught inside an apartment by police after a civilian observed him breaking in the door. Police located two loaded guns during the incident.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $250,000, or both. Defendants who have three prior convictions for violent felonies or serious drug offenses face a minimum of 15 years and a maximum of life in prison, under the federal Armed Career Criminal Act. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Georgia Woman Sentenced for Selling PainkillersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistELKINS, WEST VIRGINIA – Dorothy Ellen Metz, 62, of Athens, Georgia, was sentenced to twelve months and one day in prison for selling prescription painkillers, United States Attorney William J. Ihlenfeld, II, announced today.
Metz pled guilty in August 2014 to one count of “Possession with Intent to Distribute Oxycodone.” An investigation by the United States Forest Service revealed that Metz traveled from Georgia to Randolph County, West Virginia to sell oxycodone pills.
In other matters:
Jeremy Edward White, 34, of Elkins, West Virginia, was sentenced to seven months in prison for his role in selling prescription painkillers. He pled guilty in September 2014 to one count of “Distribution of Clonazepam” following an investigation by the United States Forest Service.
Beth Harman Ours, 46, of Petersburg, West Virginia, was sentenced to five years of probation. An investigation by the Potomac Highlands Drug and Violent Crime Task Force revealed her role in selling valium pills. She pled guilty in August 2014 to one count of “Distribution of Diazepam.”
Elizabeth Allison Sweatt, 39, of Nice, California, was sentenced to five years of probation. She was also ordered to forfeit $15,402.98 and to pay a money judgment in the amount of $60,000.00. She pled guilty in May 2014 to one count of “Possession with Intent to Distribute Marijuana – Aiding and Abetting.” An investigation by the United States Postal Inspection Service revealed that she was mailing packages containing marijuana from California to an associate in West Virginia for redistribution.
Jordan Elliot Ross, 24, was sentenced to three years of probation. Ross pled guilty in August 2014 to one count of “Distribution of Hydrocodone” following a West Virginia State Police investigation.
Chad Preston, 34, of Coalton, West Virginia, was sentenced to three years of probation. He pled guilty in March 2014 to one count of “Possession with Intent to Distribute Oxycodone” following an investigation by the Mountain Region Drug and Violent Crime Task Force.
Assistant U.S. Attorney Shawn Morgan prosecuted Preston and Assistant U.S. Attorney Steve Warner prosecuted the remaining cases on behalf of the government.
Chief U.S. District Judge John Preston Bailey presided.
Garland Man Pleads Guilty to Child Pornography OffenseRead the Press Release
DALLAS — A Garland, Texas, man, Jonathan Ramirez, 26, appeared yesterday before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to one count of receipt of child pornography, announced U.S. Attorney Sarah R. Saldana.
Ramirez, who is in the U.S. illegally, faces a statutory penalty of not less than five years nor more than 20 years in federal prison, up to a $250,000 fine and up to a lifetime of supervised release. Sentencing is set for March 4, 2015, before U.S. District Judge Ed Kinkeade.
According to documents filed in the case, in June 2014, a Task Force Officer with the FBI, working online in an undercover capacity investigating the distribution of child pornography and the sexual exploitation of children, learned that a specific IP address, later linked to Ramirez, had made 78 files of child pornography available for sharing. Based in part on that discovery, the following month, law enforcement with the FBI Dallas Child Exploitation Task Force and the Garland Police Department executed a federal search warrant at Ramirez’s home. Agents seized an external hard drive and other media belonging to Ramirez. A review of the evidence revealed that the hard drive contained several child pornography videos.
Ramirez admitting using ARES P2P file sharing network to view and download images and videos of child pornography that he would then move to an external hard drive. He admitted that he had more than 175 videos and 50 images of child pornography on his computer and external hard drive.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI’s Dallas Child Exploitation Task Force and the Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Founder of Deca Financial Service in Fishers Charged in Five Million Dollar FraudRead the Press Release
INDIANAPOLIS - Josh J. Minkler, Acting United States Attorney announced today the arrest of an Indianapolis man for bank fraud, wire fraud and bankruptcy fraud in a scheme involving the theft of over $5 million dollars. Todd J. Wolfe, 52, was arrested at his home this morning.
“Defrauding a financial institution affects all honest, hardworking individuals,” said Minkler. “Anyone who uses their position to abuse the public’s trust will be held strictly accountable.”
Since 2009, Wolfe operated DECA Financial services in Fishers, Indiana. DECA was a full service credit collections company which at one time employed nearly 75 individuals and whose principal activity was to collect delinquent loans for health care, student loans and financial services.
On two occasions, Wolfe allegedly filed false financial reports to BMO Harris bank inflating the assets of his company. The false reports allowed Wolfe to obtain lines of credit which he in turn used for personal expenses. Over a two and one half year period, the credit extended to Wolfe increased from $1 million to $7.5 million. Affidavits show he used some of the money to make payments on his personal residence, an automobile, personal credit card accounts and a lake house.
In June, 2013 Wolfe agreed to sell an individual $1 million in DECA stock which represented 5% ownership in the company. The victim was never repaid anything for his stock purchase. Wolfe allegedly used some of the $1 million to purchase a 2011 Audi 5S automobile. In February of this year, creditors forced Wolfe into bankruptcy. An attorney representing Wolfe and DECA filed a motion with the court stating Wolfe had a living trust worth over $14 million which could be used to repay creditors. The actual value of the trust was $52,000. The misrepresentation likely would delay the appointment of an independent trustee to oversee the operation of DECA and delay creditor’s access to books and records.
This was a joint investigation with the Federal Bureau of Investigations and the U.S. Bankruptcy Trustee.
FBI Special Agent in Charge W. Jay Abbott stated, “The FBI remains committed to seeking out those individuals that enhance their lifestyle through ill-gotten gains obtained by defrauding financial institutions.”
“I am grateful to Acting U.S. Attorney Minkler and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases as evidenced by today’s proceedings,” stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois, and Southern Illinois (Region 10).
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
The charges resulted, in part, from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney. Assistance with the investigation was provided by members of the Southern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee.
According to Winfield Ong, Criminal Chief for the U.S. Attorney’s Office, Wolfe faces decades in prison and substantial fines if convicted.
A complaint is merely a charge and not proof of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
Former Teamster Leader Convicted of Extorting Boston BusinessesRead the Press Release
BOSTON – Two former members of a powerful Boston Teamsters local, including its principal officer and a member who had been convicted of a prior felony, were convicted today by a federal jury of extortion and racketeering, including charges that they extorted local non-profits.
John Perry, 62, of Woburn and Joseph “Jo Jo” Burhoe, 46, of Braintree, were convicted on multiple felony counts after a seven week trial. Perry, the former Secretary/Treasurer of Boston Teamster’s Local 82, and Burhoe, a member who acted as Perry’s enforcer, were convicted of extorting non-profits and other non-union businesses in Boston, as well as extorting other union members of their wages and benefits. Among the extortion victims were Brigham and Women’s Hospital, Massachusetts General Hospital, and the United States Green Building Council. Since the time of the crimes, Local 82 has been merged with Teamsters Local 25. Those Locals load and unload trucks at major business and entertainment venues in downtown Boston. Judge Denise Jefferson Casper set sentencing for Perry on Feb. 25, 2015 and Feb. 26, 2015 for Burhoe.
“Today’s verdict reconfirms our commitment to protecting those doing business in Boston from unions’ extortionate demands for personal payoffs or other illegitimate labor objectives,” said U.S. Attorney Carmen Ortiz. “We will also protect union members’ rights to democratic participation in the affairs of their union, including the right to vote on contracts that effect their livelihood, their right to file grievances, and their right to appear in court as a witness, without fear of intimidation or physical assault by union officials.”
United States Department of Labor Inspector General Scott S. Dahl stated, “Today’s convictions represent the Department of Labor, Office of Inspector General’s commitment to protect the American workforce from those who abuse their positions of trust and instill fear in others desiring simply to conduct an honest business. John Perry and his co-conspirator created a climate of fear and intimidation that deprived workers of their rights under the Labor Management Reporting and Disclosure Act. My office stands firmly committed to working with our law enforcement partners to combat this criminal activity.”
“I want to commend the great work and collaboration between the Boston Police Special Investigations Unit, the United States Attorney’s Office and the U.S. Department of Labor to bring about this verdict,” said Boston Police Commissioner William B. Evans. “Their efforts throughout this investigation were tireless and will ensure that Boston remains a world class city that attracts world class events.”
Perry, Director of Trade Shows and Convention Centers for the International Brotherhood of Teamsters Local 82, and Burhoe, a convicted felon who was a member of the union, worked in the trade show and moving industries. Since 2007 the defendants engaged in illegal activities in order to generate money for themselves, their friends, and family members. The defendants extorted various entities throughout Boston including hotels, event planners, catering companies, pharmaceutical companies, hospitals, music entertainment companies, and non-profit organizations, none of which had collective bargaining agreements with Local 82.
The defendants threatened to picket and disrupt business, sometimes just hours before an event, if the entity did not accede to the defendants’ demand for unwanted, unnecessary and superfluous jobs for themselves, their friends and family. Payment was demanded for these unnecessary Ajobs.@ They also used threats of physical and economic harm to deprive members of Local 82 of their legally-protected rights as union members.
The statutory maximum for each RICO/RICO Conspiracy and Hobbs Act extortion count is 20 years in prison to be followed by five years of supervised release, and a $250,000 fine for each count. The statutory maximum for other counts of conviction is up to 10 years in prison to be followed by three years of supervised release and a $10,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Two other defendants were on trial with Perry and Burhoe. The jury was unable to reach a unanimous decision as to James Deamicis, a/k/a “Jimmy the Bull,” 51, of Quincy, and the Court declared a mistrial as to Deamicis. Thomas Flaherty, 50, of Braintree was acquitted.
U.S. Attorney Ortiz; Inspector General Scott S. Dahl; Mark J. Neylon, District Director, Office of Labor-Management Standards, U.S. Department of Labor; Susan A. Hensley, Regional Director of The Employee Benefits Security Administration, U.S. Department of Labor; and Commissioner Evans made the announcement today. The case is being prosecuted by Laura J. Kaplan and Susan G. Winkler of Ortiz’s Strike Force and Drug Task Force Units, respectively.Former Pastor Sentenced for ObscenityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Zackary S. Dressner, 38, of Rochester, NY, who was convicted of possession of obscene visual depictions of minors engaging in sexually explicit conduct, was sentenced to 30 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that on November 18, 2011, members of the Federal Bureau of Investigation Computer Crimes Task Force went to the residence of the defendant and seized a desk top computer and four external hard drives. A subsequent forensic analysis found two videos and some still images depicting child pornography. At the time of seizures, Dressner was serving as pastor of the Southeast Bible Baptist Church and the Southeast Christian Academy in Penfield, NY.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation Computer Crimes Task Force.
Former Office Manager Indicted for Corporate FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of an indictment returned by a federal grand jury last week which charges LORI S. FRY, age 46, of Baton Rouge, Louisiana, with nine (9) counts of wire fraud, in violation of Title 18, United States Code, Section 1343. If convicted, the defendant could face significant incarceration, fines, restitution, forfeiture of proceeds, and supervised release following imprisonment.
The indictment alleges that the defendant embezzled approximately $465,000 from her employer, a specialty electrical engineering firm in Baton Rouge. According to the indictment, while working as a manager and bookkeeper at the firm, the defendant diverted over 100 separate payments from the firm’s account to her own personal use, through her personal bank account and otherwise.
U.S. Attorney Green stated: “Fraud threats loom virtually everywhere, but it is often the insider who poses the biggest danger in terms of both amount and duration. As our region continues to grow, it is increasingly important for us to remain vigilant against corporate fraud. My office will continue to do its part in combatting such criminality.”
This matter was investigated by the Baton Rouge office of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr. and Special Assistant United States Attorney J. Brad Casey.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Former North Carolina Man Sentenced for Transporting A Minor to North Carolina and Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that William Schliebener, 52, formerly of Sanford, NC, who was convicted of transporting a minor in interstate commerce for the purpose of illegal sexual activity and production of child pornography, was sentenced to 300 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney John J. Field, who handled the case, stated that the defendant came to the attention of law enforcement in October 2010 when a young Canandaigua girl was reported missing. Members of the Canandaigua Police Department and the Lee County, North Carolina Sheriff’s Department found the child with the defendant in North Carolina. Schiebener transported the child from Canandaigua to North Carolina with the intent to engage in illegal sexual activity. Following the discovery of the child, a search warrant was executed at the defendant’s residence in North Carolina, and officers seized computers and digital media. Forensic analysis of the media revealed images of the defendant engaged in sexual activity with three children.
“This case demonstrates why it is so critical to identify and prosecute child predators to the fullest extent in law,” said U.S. Attorney Hochul. “The original arrest was for the attempted abuse of a single child, coupled with the defendant’s intention to digitally record and memorialize the attack. Investigation thereafter revealed the rape of three different children, each of which was also digitally recorded. Fortunately, this sentence means that this serial rapist will likely never again be in a position to harm children.”
The sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation and Investigators of the Canandaigua Police Department, under the direction of Chief Jonathan P. Welch.
Former Millersburg Bus Company and Executive Plead Guilty to $1.4 Million Local School District Fraud SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that a Millersburg bus company and one of its former officers pleaded guilty today to charges they defrauded two area school districts out of more than $1.4 million.
According to the U.S. Attorney Peter Smith, the Harris Transportation Corp. (HTC), and its former Vice President Todd M. Harris, age 49, a resident of Dalmatia, Pennsylvania, entered guilty pleas today before Senior U.S. District Court Judge Sylvia H. Rambo to an Information charging them with one count of Mail Fraud. The Information filed on November 5, 2014, charges the defendants with defrauding the Halifax Area and the Upper Dauphin Area School Districts out of approximately $1.4 million between 2008 and 2011. The Pennsylvania Department of Education (PDE) is also alleged to have been a victim of the scam. U.S. Attorney Smith stated that the school districts and PDE cooperated with the federal investigators and that the Department of the Auditor General is working closely with his office.
As presented by Assistant U.S. Attorney Kim Douglas Daniel in U.S. District Court in Harrisburg today, HTC, a small, family owned business, provided student bus and van transportation services for the Halifax and Upper Dauphin school districts for many years. The compensation HTC received for its services was based upon a formula set up by PDE, including mileage incurred with and without students, the age and size of the bus or van, and the number of students transported. Based on the formula, PDE reimburses school districts for a major portion of their annual student transportation expenses.
HTC received approximately $1.3 million from Halifax and approximately $3.6 million from Upper Dauphin during the school years 2008 to 2011. The criminal Information alleges that between September 2008 and June 2011, Todd Harris routinely submitted false and grossly inflated mileage claims to the two school districts, resulting in substantial overpayments to HTC by Halifax ($566,556) and by Upper Dauphin ($898,057). PDE also was a victim of the scheme because it reimbursed Halifax for approximately 82 percent, and Upper Dauphin approximately 84 percent, of their approved 2008-2011 student transportation expenses.
The fraud was first discovered in the summer of 2011 following an audit conducted by Upper Dauphin School District. Subsequent audits by the Halifax School District and the Pennsylvania Department of the Auditor General revealed the mileage statements submitted by Todd Harris were typically inflated by 10 to 30 percent. The State Auditors spent hundreds of hours reviewing billing issues and reported that Harris Transportation had over-billed the school districts by falsely reporting school bus mileage over several school years.
“We need every dollar possible going toward classroom education for our students, but I realize that student transportation costs can be a big expense for any school district,” Pennsylvania Auditor General Eugene DePasquale said. “I urge all school districts to review transportation contracts and records to make sure they are not paying more than appropriate. Our school auditors will continue to closely examine transportation expenses. I am proud of our continued work with the U.S. Department of Education’s Office of Inspector General and U.S. Attorney to identify and stop corruption when we find it.”
The Auditor General’s audit reported that Harris Transportation Corp. greatly over-billed the districts by falsely reporting school bus mileage over several school years. Auditors spent hundreds of hours reviewing the transportation billing issues, ultimately referring the case to federal officials.
Interviews of former HTC drivers confirmed Todd Harris’ monthly mileage submissions were inflated and that Harris occasionally instructed them to take much longer routes on their runs than necessary. The investigation confirmed the combined losses sustained by both school districts for school years 2008 to 2011 totaled $1,464,613. Upper Dauphin and Halifax terminated their contracts with HTC in early 2012. The company ceased doing business shortly thereafter.
Todd Harris and HTC entered their guilty pleas pursuant to plea agreements with the government. The agreements require the defendants to cooperate with the government, to forfeit their interests in the $1,464,613 proceeds of the fraud, and to make restitution to the two school districts as directed by the court.
HTC’s plea agreement also required it to make a $425,000 lump sum restitution payment at the time it entered its guilty plea. Counsel for the corporation tendered a $188,000 check to the court as partial payment during the guilty plea hearing and agreed to pay the remaining $237,000 by Friday November 22, 2014. The HTC plea agreement also acknowledges that HTC refunded an additional amount, $337,715, to Upper Dauphin in 2011, bringing the total restitution paid by the corporation to date to $762,715.
The Mail Fraud charge has a maximum sentence of up to 20 years in prison and a $250,000 fine. Sentencing has been deferred pending preparation of Presentence Reports.
The case was investigated by the U.S. Department of Education, Office of Inspector General, in conjunction with the Dauphin County Criminal Investigation Division and Office of General Counsel of the Pennsylvania Department of the Auditor General. The case is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Former McLennan County Justice of the Peace Sentenced to Federal Prison on Theft ChargeRead the Press Release
In Waco today, 60-year-old former McLennan County Justice of the Peace Erma Jean Laster Boone was sentenced to 9 months in federal prison in connection with a scheme to steal Social Security Income benefits announced United States Attorney Robert Pitman.
In addition to the prison term, United States District Judge Walter S. Smith, Jr. ordered that Boone pay a $5,000 fine and be placed on supervised release for a period of three years after completing her prison term.
On September 11, 2014, Boone pleaded guilty to theft of Government property. According to court records, Robert Martin Davis died on May 27, 2010, and the defendant was the reporting party on Davis’ death certificate. From Davis’ death until October 2013, the Social Security Administration continued to deposit Social Security benefits, which totaled approximately $63,000, into Davis’ bank account. The defendant had access to Davis’ bank account. Boone admitted to authorities that she spent over $16,000 from Davis’ account on “fixing stuff up around the house.” In March 2014, Boone paid back to the Social Security Administration the money she had fraudulently embezzled and used.
This investigation was conducted by the United States Social Security Administration, Office of Inspector General. Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
Former Las Cruces Detective Sentenced to Nine Years for Sexually Assaulting Police Department InternRead the Press Release
Michael Garcia, 38, a former detective with the Las Cruces Police Department (LCPD) in Las Cruces, New Mexico, was sentenced today for violating the civil rights of an LCPD student intern. Garcia was sentenced to nine years in prison followed by five years of supervised release. Garcia also was ordered to forfeit his law enforcement certification and comply with federal and state sex offender registration requirements.
Garcia pled guilty on April 17, 2014, to a one-count information charging him with violating the civil rights of the victim by sexually assaulting her. At the time of the assault, Garcia was assigned to a unit that focused on child abuse and sex crimes investigations. According to court documents, Garcia—in his role as a detective—worked with students who participated in Las Cruces High School’s Excel program, through which students interned at the LCPD. On or about May 4, 2011, Garcia took the victim on a ride-along in his department-issued vehicle to visit a crime scene. Afterward, instead of driving the victim directly back to the police department so that she could retrieve her belongings and go home, Garcia drove her to a secluded location where he sexually assaulted her.
“The defendant abused his authority as a sex crimes detective in the most horrific way, exploiting the victim’s trust in him to commit his egregious acts,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute law enforcement officers who use the power of their position to engage in sexual abuse. The victim showed tremendous bravery when she came forward, and we are thankful for the law enforcement officers in this case, as well as the vast majority of others, who support and help victims of crime.”
“Our system of justice is clear and unequivocal – every law enforcement officer must follow the laws they are sworn to enforce,” said U.S. Attorney Damon P. Martinez for the District of New Mexico. “Any time a law enforcement officer breaks the law it undermines the public’s trust in the legal system, and we will do everything we can to ensure that trust is not compromised.”
“Law enforcement officers receive a lot of authority in order to serve their community, and the majority of them use that power wisely,” said Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division. “But when an officer tramples on the civil rights of someone he swore to protect, it's up to the FBI and our partners to make sure that violator is investigated and prosecuted to the full extent of the law. I would like to thank the Las Cruces Police Department for assisting with this investigation, and congratulate the U.S. Attorney's Office on its successful prosecution.”
This case was investigated by the Las Cruces Resident Agency of Albuquerque Division of the FBI and the LCPD and was prosecuted by Assistant U.S. Attorney Holland S. Kastrin for the District of New Mexico and Trial Attorney Fara Gold of the Justice Department’s Civil Rights Division.
Former Las Cruces Detective Sentenced to Nine Years for Sexually Assaulting Police Department InternRead the Press Release
ALBUQUERQUE – Michael Garcia, 38, a former detective with the Las Cruces Police Department (LCPD) in Las Cruces, N.M., was sentenced today for violating the civil rights of an LCPD student intern. Garcia was sentenced to nine years in prison followed by five years of supervised release. Garcia also was ordered to forfeit his law enforcement certification and comply with federal and state sex offender registration requirements.
Garcia pled guilty on April 17, 2014, to a one count information charging him with violating the civil rights of the victim by sexually assaulting her. At the time of the assault, Garcia was assigned to a unit that focused on child abuse and sex crimes investigations. According to court documents, as a detective, Garcia worked with students who participated in Las Cruces High School’s Excel program, through which students interned at the LCPD. On or about May 4, 2011, Garcia took the victim on a ride-along in his department-issued vehicle to visit a crime scene. Afterward, instead of driving the victim directly back to the police department so that she could retrieve her belongings and go home, Garcia drove her to a secluded location where he sexually assaulted her.
“The defendant abused his authority as a sex crimes detective in the most horrific way, exploiting the victim’s trust in him to commit his egregious acts,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute law enforcement officers who use the power of their position to engage in sexual abuse. The victim showed tremendous bravery when she came forward, and we are thankful for the law enforcement officers in this case, as well as the vast majority of others, who support and help victims of crime.”“Our system of justice is clear and unequivocal – every law enforcement officer must follow the laws they are sworn to enforce,” said U.S. Attorney Damon P. Martinez. “Any time a law enforcement officer breaks the law it undermines the public’s trust in the legal system, and we will do everything we can to ensure that trust is not compromised.”
“Law enforcement officers receive a lot of authority in order to serve their community, and the majority of them use that power wisely. But when an officer tramples on the civil rights of someone he swore to protect, it's up to the FBI and our partners to make sure that violator is investigated and prosecuted to the full extent of the law,” said Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division. “I would like to thank the Las Cruces Police Department for assisting with this investigation, and congratulate the U.S. Attorney's Office on its successful prosecution.”
This case was investigated by the Las Cruces Resident Agency of Albuquerque Division of the FBI and the LCPD and was prosecuted by Assistant U.S. Attorney Holland S. Kastrin for the District of New Mexico and Trial Attorney Fara Gold of the Justice Department’s Civil Rights Division.
Former Corrections Officer Pleads Guilty to Participating in Scheme to Smuggle Drugs into Otero County PrisonRead the Press Release
ALBUQUERQUE – Luis Delgadillo, 38, of El Paso, Texas, pled guilty today to an indictment charging him with conspiracy to distribute methamphetamine and heroin into the Otero County Prison Facility (OCPF) in Chaparral, N.M. At the time of the indictment, Delgadillo was employed as a corrections officer at OCPF. Delgadillo is the last of six defendants to enter a guilty plea in this case.
Delgadillo was indicted in Aug. 2014, on a drug trafficking conspiracy charge together with Gary Borja 26, Armando Lopez, 28, and Ana Lopez, 26, all of Albuquerque, N.M.; Nancy Salas, 35, of Alamogordo, N.M., and Eric Lovato, 30, of Boles Acres, N.M. The six defendants were charged with participating in a conspiracy to smuggle drugs into the OCPF between Dec. 2013 and April 2014, when Borja, Armando Lopez and Lovato were inmates at the facility and Delgadillo was a corrections officer.
According to court filings, the FBI initiated an investigation into the case in Jan. 2014, after receiving information from the New Mexico Corrections Department (NMDOC) allegedly showing that Delgadillo was smuggling heroin and methamphetamine into the OCPF. The investigation, which included a review of recorded inmate telephone calls and OCPF surveillance video, physical surveillance and the results of inmate drug testing, identified the six defendants as members of a conspiracy to allegedly smuggle narcotics into the OCPF between Jan. 2014 and April 2014.
In entering his guilty plea, Delgadillo admitted participating in a conspiracy to smuggle drugs into the OCPF between Dec. 2013 and April 2014. Delgadillo admitted smuggling an ounce of methamphetamine into the OCPF in Dec. 2013; an ounce of heroin in Feb. 2014; and another ounce of heroin in April 2014. He also admitted that on April 26, 2014, he met with Ana Lopez and obtained 25 grams of methamphetamine, 11 grams of heroin and 10 suboxone pills from her. He was arrested before he was able to smuggle the drugs into the OCPF.Each of the six defendants faces a statutory maximum penalty of 20 years in prison when sentenced. They remain in federal custody pending their sentencing hearing, which have yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the New Mexico Corrections Department and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
- Former Correctional Officer and Spouse Sentenced for Bribery and Conspiracy
Former Clinton County Postmaster Sentenced to Two Years' Probation for EmbezzlementRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Matthew W. Brann sentenced Macey Geyer, age 42, of Castanea, Clinton County, to two years’ probation and ordered her to pay $9,230 in restitution for misappropriation of postal funds.
According to United States Attorney Peter Smith, Geyer took over $9,000 in postal funds from the Castanea Post Office. Geyer, who began her employment with the United States Post Service on June 23, 2007, served as Officer-in-Charge at the Castanea Post Office. The Postal Service terminated her employment in April 2014.
Geyer pleaded guilty on July 8, 2014.
The case was investigated by the United States Postal Service, Office of Inspector General. Assistant United States Attorney Eric Pfisterer prosecuted the case.
Federal Grand Jury Indicts Monahans Man for Oil Theft SchemeRead the Press Release
In Midland, a federal grand jury returned an indictment charging a Monahans, TX, man in connection with a scheme to steal an estimated $58,000 worth of oil announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas C. Lindquist, El Paso Division.
The indictment charges 33–year-old David Wayne Schroeder with three counts of theft from an interstate shipment. The indictment alleges that on three separate occasions in November and December 2013, Schroeder stole oil from different Permian Basin companies. The final incident, according to court records, occurred during the evening hours of November 30, 2013, and into the early morning hours of December 1, 2013, when Schroeder used a stolen vacuum truck and trailer to steal five tankerloads (approximately 520 barrels) of oil from a Whiting Petroleum lease in Ward County. Schroeder delivered the stolen oil to Itero Energy’s site in Monahans for payment. A Ward County Sheriff’s deputy dispatched to investigate a possible stolen vacuum truck on Itero’s site witnessed Schroeder off-loading oil and attempted to question him. After a brief altercation with the deputy, Schroeder managed to flee the scene in a stolen vehicle, but was apprehended later that morning in Monahans. Investigators discovered Schroeder had left four tickets each documenting a separate tanker load delivered to Itero Energy’s site. In the normal course of business, the tickets would have justified and likely led to Itero Energy’s payment for the oil deliveries.
This investigation was conducted by the FBI’s Permian Basin Oilfield Theft Task Force, which consists of federal agents as well as law enforcement officers from the Midland County Sheriff’s Office and the Andrews County Sheriff’s Office. Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.
Upon conviction of each theft charge, Schroeder faces up to 20 years in federal prison. Schroeder remains in federal custody pending trial. No trial date has been scheduled.Fairmont, WV Man Charged with Stealing Government MoneyRead the Press Release
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(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – A federal grand jury returned an indictment charging former United States Forest Service employee Kwaku A. Akomah, 40, of Fairmont, West Virginia, with stealing government money, United States Attorney William J. Ihlenfeld, II, announced today.
A Forest Service investigation revealed that Akomah made repeated unauthorized purchases using government funds. He made a variety of unauthorized personal purchases, including the use of a government issued fuel card to procure more than $1,000.00 in gasoline for his personal vehicle.
Akomah is charged with two counts of “Theft of Government Money.” He faces up to 10 years in prison and a fine of up to $250,000.00 on each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fairfield Resident Sentenced to Federal Prison for Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT JOSEPH PARKER, 52, of Fairfield, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment, followed by three years of supervised release, for tax evasion.
According to court documents and statements made in court, PARKER earned income by providing information technology services to various businesses. Between 1996 and 2012, PARKER did not pay any federal income tax on approximately $2 million of income he received in his own name, and in the name of his alter ego entity known as Success Zone, LLC.
As part of his sentence, PARKER was ordered to pay $1,869,419 in taxes, interest and penalties for himself personally for tax years 1996 through 2012, and for Success Zone, LLC, for tax years 2003 through 2012.
On March 5, 2014, PARKER waived his right to indictment and pleaded guilty to one count of tax evasion.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Senior Litigation Counsel Richard J. Schechter.
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(203) 821-3722 [email protected]Excelsior Springs Man Faces Additional Charges Related to Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that additional charges were contained in an indictment returned by a federal grand jury today against an Excelsior Springs, Mo., man related to his role in a conspiracy to manufacture methamphetamine.
Anthony Trurice Grayson, 30, of Excelsior Springs, was charged in a five-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s superseding indictment replaces an Aug. 7, 2013, federal indictment that only charged Grayson with one count of conspiracy.
Today’s indictment alleges that Grayson participated in a conspiracy to manufacture methamphetamine from July 1 to July 16, 2013. Grayson is also charged with aiding and abetting others to manufacture methamphetamine, aiding and abetting others to possess pseudoephedrine to be used to manufacture methamphetamine, maintaining a residence that was available for the purpose of unlawfully manufacturing, storing and/or using methamphetamine and being a felon in possession of explosives.
This case is being prosecuted by Special Assistant U.S. Attorney Jeff Q. McCarther. It was investigated by the Drug Enforcement Administration.