Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 25 September 2014
Two Men Convicted of Providing Material Support to Terrorists and Plotting to Kill American Targets in AfghanistanRead the Press Release
RIVERSIDE, California – Two men were found guilty today of federal charges related to plots to provide material support to terrorists and to kill American personnel.
Following a 6½-week trial, a federal jury returned guilty verdicts against the two defendants, one a United States citizen and one who was residing in California on a “Green Card.”
The two men convicted today are Sohiel Omar Kabir, 36, a naturalized United States citizen who was born in Afghanistan and who until late 2011 resided in Pomona; and Ralph Deleon, 25, of Ontario, a lawful permanent resident and citizen of the Philippines.
The jury found that Kabir and Deleon together were guilty in relation to two specific plots: conspiring to provide material support to terrorists and conspiring to kill officers and employees of the United States Government.
As a result of these convictions, Kabir and Deleon each face life without parole when they are sentenced on February 23 by United States District Judge Virginia A. Phillips.
Additionally, the jury found Kabir guilty of participating in two additional schemes: conspiring to provide material support and resources to Al-Qa’ida, a designated foreign terrorist organization; and conspiring to receive military-type training from Al-Qa’ida.
Deleon was additionally found guilty of conspiring to commit murder, kidnapping, or maiming overseas, for which he also faces a possible life sentence.
“This case shows that the appeal of extremist ideologies can reach from Afghanistan to America, demonstrating the clear need for continued vigilance in rooting out homegrown violent extremists who plot terrorist acts both here and abroad,” said United States Attorney Stephanie Yonekura. “The fine work of the FBI agents, other members of the Joint Terrorism Task Force and the prosecutors on this case shows how we can identify, infiltrate and dismantle terrorist cells bent on striking America and the American military.”
“The threat posed to America’s security by individuals within the United States who support terrorists is very real,” said Bill Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This case demonstrates the process by which individuals living in the United States were groomed and radicalized toward an extremist ideology and, ultimately, planned the murder of American and coalition forces. The FBI and our partners on the Joint Terrorism Task Force are committed to identifying and thwarting support for terrorism before irreversible damage is inflicted on the innocent.”
Two other defendants who were indicted in the case in 2012 – Miguel Alejandro Santana Vidriales and Arifeen David Gojali – previously pleaded guilty and are pending sentencing.
The evidence presented during the trial showed Kabir introduced Deleon and Santana to radical Islamic ideology in 2010. Kabir left the United States in the final days of 2011, arriving in Afghanistan in July 2012. While in Afghanistan, Kabir continued to communicate with Santana and Deleon, encouraging them to join him in Afghanistan. Kabir told Santana and Deleon that he had made contacts with terrorist organizations, and, when they arrived, all three would join “the students” – the Taliban – and “the professors” – Al-Qa’ida.
In February 2012, an FBI source met Deleon and Santana. They discussed radical Islamic views, and in the spring of 20112 Deleon revealed the plan to travel overseas to engage in “violent jihad,” which would include attacking American military personnel and bases. Deleon told the source he wanted to be on the front lines or use explosives, and Santana said he wanted to be a sniper.
In September 2012, Deleon and Santana recruited Gojali to join them and to travel overseas to commit violent jihad. Deleon, Santana and Gojali made plans to join Kabir in Afghanistan to engage in violent training. As part of their planning, Santana, Deleon and Gojali conducted preliminary training in southern California at firearms and paintball facilities to prepare for terrorist training overseas.
Deleon, Santana and Gojali were arrested by the FBI on November 16, 2012 after leaving a Chino apartment. The three were planning to drive to Mexico, from where they would fly to Afghanistan. Kabir was taken into custody by American military personnel in Afghanistan.
In addition to the guilty verdicts, the jury acquitted Kabir of conspiring to commit murder, kidnapping, or maiming overseas (the count which Deleon alone was guilty of). The jury was unable to reach a unanimous verdict on two charges against Deleon – conspiring to provide material support and resources to Al-Qa’ida, a designated foreign terrorist organization; and conspiring to receive military-type training from Al-Qa’ida (the two charges which Kabir alone was found guilty of).
The investigation into this terrorism scheme was conducted by the Joint Terrorism Task Force (JTTF) in Riverside, California. The Riverside JTTF is comprised of members from the following agencies: Riverside County Sheriff’s Office; Riverside Police Department; San Bernardino Sheriff’s Department; Beaumont Police Department; Ontario Police Department; U.S. Immigration and Customs Enforcement – Homeland Security Investigations (ICE-HSI); the United States Attorney’s Office and the Federal Bureau of Investigation.
Release No. 14-129
Two Illegal Aliens Charged with Immigration ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced that separate criminal charges were filed yesterday against two illegal aliens.
Fausto Cruz-Lopez, age 33, in the United States illegally was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Cruz-Lopez, previously arrested and deported from the United States in March 2013, knowingly and unlawfully reentered the United States and was apprehended in York County, Pennsylvania.
If convicted, Cruz-Lopez faces a maximum sentence of up to 2 years’ imprisonment and a $250,000 fine.
Estuardo Arana-Tobar, age 32, in the United States illegally was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Arana-Tobar, convicted in May 2006 of statutory sexual assault, previously arrested and deported from the United States in May 2007, knowingly and unlawfully reentered the United States and was apprehended in Franklin County, Pennsylvania.
If convicted, Arana-Tobar faces a maximum sentence of up to 20 years’ imprisonment and a $250,000 fine.
The investigations were conducted by the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and are being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Topeka Man Indicted on Federal Firearms ChargeRead the Press Release
TOPEKA, KAN. – A Topeka man was indicted Wednesday on a federal charge of conspiring to buy firearms and unlawfully transfer them to a buyer in another state, U.S. Attorney Barry Grissom said.
Donald Gene Garst, 52, who is in the custody of the Bureau of Prisons, is charged with one count of conspiring to unlawfully transfer firearms. The indictment alleges that on Aug. 16, 2013, Garst was referring to firearms when he told an unindicted co-conspirator that there was a lot of money to be made in “women’s shoes” and that they should acquire all the “women’s shoes” they could.
On Sept. 13, 2013, another unindicted co-conspirator rented space at Quality Storage Facility, 426 E. 6th in Holton, Kan. The next day, she took out a loan of $1,500 and purchased a Cobra Model FS380 pistol and a New Frontier Armory Model LW-15 rifle. She put them in a suitcase belonging to Garst for delivery to the storage facility. She gave Garst the combination to the storage locker so that he could pass it on to a person from another state who would retrieve the firearms and leave $2,800 in an envelope marked “Barney” to pay for the firearms. On Sept. 19, 2013, the purchaser entered the storage locker and retrieved the firearms.
If convicted, Garst faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Six Kansas City, Kan., men are charged in a superseding indictment with conspiracy to distribute methamphetamine and other counts. The crimes are alleged to have occurred Jan. 1, 2014, to Sept. 5, 2014, in Kansas City, Kan.
Among those charged are the following:
Jesus Octavio Valdez-Acguirre, Kansas City, Kan.
Mario Saucedo-Avalos, 39, Kansas City, Kan.
Jessie Joe Silva, 38, Kansas City, Kan.
Roberto Lara-Mojica, 20, Kansas City, Kan.
Ramon Espinoza, 68, Kansas City, Kan.
Juan Manuel Lopez-Garcia, Kansas City, Kan., 25, Kansas City, Kan.The indictment seeks a forfeiture money judgment of $148,000, representing the proceeds of the crimes.
Upon conviction, the crimes alleged in the indictment carry the following penalties:
Conspiracy to distribute methamphetamine: Not less than 10 years in federal prison and a fine up to $10 million.
Distributing methamphetamine: A maximum penalty of 20 years and a fine up to $1 million.
Distributing 50 grams or more of methamphetamine: Not less than 10 years and a fine up to $10 million on each count.
Unlawful possession of a firearm by an alien unlawfully in the United States: A maximum penalty of 10 years and a fine up to $250,000 on each count.The Drug Enforcement Administration investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Six Kansas men are charged with conspiracy to distribute methamphetamine and other counts. The crimes are alleged to have occurred from October 2013 to Sept. 5, 2014, in Wyandotte County, Kan.
Among those charged are the following:
Vicencio Olea-Monarez, 36, Kansas City, Kan.
Gabriel Agustin Lopez, 28.
Rosalio Chinchilla, 44, Kansas City, Kan.,
Jose Luis Silva-Cardona, 24, Kansas City, Mo.
Joshua Thomas Alvarez, 25, Kansas City, Kan.
Lee Thomas Faulkner, 40, Topeka, Kan.The indictment alleges members of the conspiracy maintained residences at 719 Lyons Ave. in Kansas City, Kan., and 1201 Gilmore Ave. in Kansas City, Kan., in furtherance of drug trafficking.
Upon conviction, the crimes alleged in the indictment carry the following penalties:
Conspiracy to distribute methamphetamine, possession with intent to distribute 1,000 marijuana plants, distributing methamphetamine, attempt to possess with intent to distribute methamphetamine: Not less than 10 years and a fine up to $10 million on each count.
Possession with intent to distribute cocaine: A maximum penalty of 20 years and a fine up to $1 million.
Maintaining a residence in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $500,000.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Unlawful possession of a firearm following a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.The FBI investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Juan Lopez-Morales, 40, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 6, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Tonawanda Man Arrested; Charged with Production and Possession of Child PornographyRead the Press Release
Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jason M. Smith, 34, of Tonawanda, NY, has been arrested and charged by criminal complaint with production of child pornography and possession of child pornography. The charges carry a maximum penalty of 30 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney S. Allen, Jr., who is handling the case, stated that, according to the complaint, on April 11, 2014, the Lancaster Police Department executed a search warrant at Smith’s residence on Byron Avenue in Tonawanda. During the search, officers seized an external hard drive. Subsequent examination by the Western New York Regional Forensic Laboratory determined the hard drive contained child pornography. Further investigation determined that the defendant was producing some of the child pornography at his residence. Some of the images depicted Smith engaged in sexual contact with what appears to be a minor, under the age of 10.
Smith was in court today before U.S Magistrate Judge Jerimiah J. McCarthy for a detention hearing. The defendant is being held.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The criminal complaint is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Lancaster Police Department, under the direction of Chief Gerald J. Gill, Jr., and the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Statements on the Departure of Attorney General Eric HolderRead the Press Release
STATEMENT FROM ETHEL KENNEDY REGARDING ATTORNEY GENERAL ERIC HOLDER
“Eric Holder has vigilantly defended an ideal Bobby strongly believed -- that the Justice Department must deliver justice for all Americans. Especially our most vulnerable, who live in the very communities where justice can be hardest to find.”
###
STATEMENT FROM MYRLIE EVERS REGARDING ATTORNEY GENERAL ERIC HOLDER
“There has been no greater ally in the fight for justice, civil rights, equal rights, and voting rights than Attorney General Holder. As a fierce consequential defender of the right to vote, the Attorney General has worked tirelessly to ensure that every American has the right, the ability and the opportunity to cast their vote and let their voice be heard.
“Attorney General Holder never shied away from the issues that greatly affect us all. From lobbying Congress to reduce prison sentences for non-violent drug offenders, to cracking down on abuse by police departments and to working to ease racial tension throughout the United States, the Attorney General was always there ready to correct injustices and offer common sense reforms to better our nation.
“I am honored to call the Attorney General a friend, and have had the distinct pleasure of working very closely with him throughout his tenure as AG and prior to his appointment. Just last year, when we celebrated the life of my husband Medgar, Attorney General Holder was the first to offer his assistance to honor Medgar and vowed to continue his pursuit for justice for all Americans, just as Medgar did.
“I wish AG Holder continued success, and look forward to continuing our work together to ensure that that this country stays on the path to greatness, righteousness and equality that we both have dedicated our lives to.”
###
STATEMENT FROM MAYOR RAHM EMANUEL REGARDING ATTORNEY GENERAL ERIC HOLDER
“On behalf of the City of Chicago, I want to thank Attorney General Eric Holder for more than five and a half years of extraordinary service as our nation’s Attorney General. Whether it’s reducing gun violence on our streets or supporting restorative justice in our schools so more children can stay on track to graduate, the City of Chicago has had a strong partner in Attorney General Holder. He has been a great champion for keeping our streets safer, making our communities stronger, and making our criminal justice system fairer. We are a better nation because of Attorney General Holder’s outstanding service.”
###
STATEMENT FROM THE LEADERSHIP CONFERENCE ON CIVIL AND HUMAN RIGHTS CEO WADE HENDERSON REGARDING ATTORNEY GENERAL ERIC HOLDER
“Attorney General Holder has presided over one of the most forward-thinking and visionary Justice Departments in memory. Remembering only his historic confirmation as the first African-American attorney general would not do justice to his tenure over the past six years, which was one of the most successful in modern American history.
"Under his leadership, the Department of Justice has put forth groundbreaking reforms to our broken criminal justice system, championed the right to vote, defended the Affordable Care Act, protected homeowners from predatory lending, defended the federal government from state overreach on immigration laws, and backed the reauthorization of the Violence Against Women Act.
"His tenure is even more remarkable considering that he was victim to an unprecedented witch hunt and abuse of power by House Republicans. Their attempt to stain the office by issuing the only contempt citation against a sitting cabinet member in modern history only validated Attorney General Holder’s effectiveness and commitment to promoting the civil and human rights of all Americans.
"Attorney General Holder came to the job as the one of the most well-prepared nominees ever considered for the post, and he has surpassed even those high expectations. We commend his service to our nation and will work to confirm a successor that will continue Justice’s commitment to the advancement of civil and human rights.”
###
STATEMENT FROM THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND REGARDING ATTORNEY GENERAL ERIC HOLDER
The NAACP Legal Defense and Educational Fund, Inc. today lauded the stellar leadership of departing Attorney General Eric Holder, who announced his resignation this morning. LDF also emphasized the need for continued vigilance in the protection of civil rights.
“When Attorney General Holder took the helm of the Department of Justice in 2009, he vowed to make the Civil Rights division the department's ‘crown jewel,’ and he has more than fulfilled that mission,” said Sherrilyn A. Ifill, President and Director-Counsel of NAACP LDF. “When the history of his tenure is written, Eric Holder will ultimately be recognized as one of the finest Attorneys General this country has ever known. In the field of civil rights there are few who could even claim to rival this Attorney General's dedication, strategic focus and commitment."
“General Holder's vision for the Civil Rights Division was one of restoration and transformation, from his leadership on voting rights, to legal services for the poor, to criminal justice reforms and, in recent weeks, to his forceful response to the tragic events in Ferguson,” Ifill added.
Ifill expressed particular support for the Attorney General’s forceful and courageous willingness to speak openly about the problem of mass incarceration in this country. “The ‘Smart on Crime’ initiatives he announced last year are a quintessential example of Attorney General Holder’s vision and boldness,” she said.
In 2013, Ifill noted, when the Supreme Court invalidated key portions of the Voting Rights Act in a devastating decision, Attorney General Holder immediately deployed the full litigation strength of the Justice Department in places like Texas and North Carolina to protect voters of color who had been made even more vulnerable to voting discrimination. Most recently, his Justice Department attorneys stood side-by-side with LDF lawyers in a Texas courtroom to challenge that state’s discriminatory photo ID law. A decision in that case, United States v. Texas, is expected in the next few weeks.
“It is hard to overstate the impact of General Holder’s tenure – but we are confident that his initiatives will endure, even under new leadership,” said Leslie Proll, Director of LDF’s Washington Office. “At this critical time for America, we can’t afford to lose momentum on civil rights. Certainly the next nominee will have big shoes to fill, but we trust and expect that his replacement will be up to the task.”
Attorney General Holder began his storied legal career as an intern at the NAACP Legal Defense Fund while at law school. Earlier this year, he was the keynote speaker at LDF’s 60th anniversary celebration of the landmark Supreme Court ruling in Brown v. Board of Education. View his remarks online here.
###
STATEMENT FROM THE HUMAN RIGHTS CAMPAIGN REGARDING ATTORNEY GENERAL ERIC HOLDER
The Human Rights Campaign (HRC), the nation’s largest civil rights organization working to achieve lesbian, gay, bisexual, and transgender (LGBT) equality, today praised the distinguished service of Eric Holder upon learning that he will be stepping down as U.S. Attorney General pending confirmation of his successor. HRC believes that the President should use this opportunity to appoint the nation’s first out LGBT cabinet member.
"Some Attorneys General wait for history, others make history happen. Attorney General Holder made history for the LGBT community,” said Chad Griffin, President of HRC. “He was our Robert F. Kennedy, lightening the burden of every American who faces legal discrimination and social oppression. We owe him a profound debt of gratitude for his legacy of advocacy and service."
Attorney General Holder has been a staunch advocate for civil rights for LGBT Americans throughout his career in public life. As U.S. Attorney General for the District of Columbia, he formed the first hate crimes task force, which has become a model for U.S. Attorneys throughout the country. He spearheaded the administration’s decision to not defend the Defense of Marriage Act (DOMA) on the grounds that it was unconstitutional. Under his leadership, the FBI and Civil Rights Division began actively investigating and prosecuting hate crimes based on sexual orientation and gender identity with the implementation of the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act.
His leadership is without comparison in the swift implementation of the Supreme Court’s Decision in Windsor v. United States. Attorney General Holder declared that the ruling meant that, “Americans in same-sex marriages are entitled to equal protection and equal treatment under the law.” From this historic statement, more than 1,000 federal rights and benefits of marriages have begun to flow to same-sex couples across the country.
HRC continues to advocate for the historic appointment of an openly LGBT cabinet member to the Obama administration.
"President Obama faces a historic opportunity in light of Attorney General Holder's departure,” said Chad Griffin, President of HRC. “The President has expressed a commitment to appointing a cabinet that reflects the full diversity of the American people, and there are many richly-qualified candidates available to serve as the first openly-LGBT cabinet secretary. It would be a natural extension of this administration's enduring commitment to equality to send a message of visibility and inclusion by nominating such a candidate to serve in this historic role."
###
STATEMENT FROM U.S. SECRETARY OF EDUCATION ARNE DUNCAN REGARDING ATTORNEY GENERAL ERIC HOLDER
“It has been a true honor to work with Eric Holder, and I know he will remain an ally in the fight for justice and equal opportunity for every student in America. Eric understands - at a very deep, personal level - the costs to families, communities and our country when students do not have equal access to educational opportunities. I am grateful for Eric’s partnership on so many issues, among them: addressing disparities in school discipline, enforcing civil rights laws in education, keeping schools and college campuses safe from violence, and ensuring value and service for students who borrow money for college. I am so grateful to Eric, Sharon and their family for their commitment to equality for all. I look forward to continuing this work with the next Attorney General.”
###
STATEMENT FROM U.S. SECRETARY OF LABOR THOMAS E. PEREZ REGARDING ATTORNEY GENERAL ERIC HOLDER
“Eric Holder is a man of extraordinary conscience and competence. It was a unique honor to serve with him at the Justice Department, and I am enormously grateful for his unwavering commitment to the cause of civil rights and to reinvigorating the Civil Rights Division in particular.
“I am confident that when objective historians write about America’s most critical moments, Eric Holder will go down as one of the preeminent attorneys general in our nation’s history – whether it’s his support of LGBT equality and his indispensable role in the president’s decision not to defend the Defense of Marriage Act; or his aggressiveness in ensuring the right to vote; or his commitment to sentencing reform; or his tough crackdown on hate crimes, financial fraud and racial profiling.
“The Justice Department is stronger for his quarter century of service there. The nation is stronger for his lifetime of work on behalf of justice and equal opportunity.”
###
STATEMENT FROM SENATOR BILL NELSON REGARDING ATTORNEY GENERAL ERIC HOLDER
“I have found Attorney General Holder to be an outstanding public servant with whom I’ve had the privilege to work with on a number of issues. Among them, he has led the fight to protect the right to vote for all citizens and that includes his recent letter warning Florida’s governor against any future efforts there to suppress the vote. And he also has been very supportive of scientists’ efforts to unlock the secrets of potential abuse at a now-shuttered reform school in North Florida. The president will miss his counsel.”
###
STATEMENT FROM REPRESENTATIVE JOHN CONYERS REGARDING ATTORNEY GENERAL ERIC HOLDER
“Attorney General Eric Holder has delivered the utmost distinguished service during his tenure in the Obama Administration. As the first African American to serve as Attorney General, Mr. Holder has shown vigorous dedication to the American people and advancing civil rights for all.
“As the fourth longest serving Attorney General in U.S. history, his devotion to the pursuit of justice is unparalleled and has comforted the nation during great times of turmoil. I appreciate that he will remain in his post until a successor is named. I wish him well in all his future endeavors and thank him for his tireless efforts over the past six years and more.”
###
STATEMENT FROM REPRESENTATIVE ELEANOR HOLMES NORTON REGARDING ATTORNEY GENERAL ERIC HOLDER
“It is heartbreaking for me to see the Attorney General leave the administration, but it is understandable that, after six years of outstanding work on domestic and international legal issues, he would desire to return to private life,” Norton said. “We in the District of Columbia are especially proud and grateful that it was his outstanding record as U.S. Attorney here that first brought Eric to the attention of President Clinton and, ultimately, to President Obama. This morning, we discussed his exceptional work to avoid the harshness of federal mandatory minimum sentencing in selected cases, when the results would have been particularly unfair, by using the local courts. This was possible because of the U.S. Attorney’s dual local and federal jurisdiction. His work influenced the changes now underway with federal mandatory minimums that are reducing the sentences of thousands of low-level drug offenders.”
###
STATEMENT FROM REPRESENTATIVE ELIJAH E. CUMMINGS REGARDING ATTORNEY GENERAL ERIC HOLDER
“Over the past six years, Attorney General Holder has worked to improve our nation’s broken justice system, enforce civil rights laws, ban racial profiling, rekindle trust between law enforcement and communities of color, restructure sentencing guidelines, and identify constructive alternatives to incarceration. In the process, he has improved how our courts and law enforcement officers do their jobs.
“As the first-ever African American to serve in this position, Attorney General Holder has promoted equal protection under the law by building bridges across ideology, race, gender, and class. His capacity to fight for the rights of every American has been boundless, and his plan to continue many of those battles beyond his tenure at the Department of Justice is a testament to his character.
“In his 26 years of public service, he has built a legacy of which he can be extremely proud, and I wish him the best as he moves on to new endeavors.”
###
STATEMENT BY REPRESENTATIVE JOHN LEWIS REGARDING ATTORNEY GENERAL ERIC HOLDER
"I am deeply saddened to learn today that the U.S. Attorney General, Eric Holder, is stepping down. His resignation is a great loss for any American seeking justice in our society. He became the symbol of fairness, an embodiment of the best in the federal government.
He has been a persistent and consistent leader in the struggle for civil and human rights. That legacy is in his bones. It is written on his heart, and his intelligence and committed leadership will be hard to replace.
In my conversation with him today, I thanked the Attorney General for his years of service to this nation. He and his family have been a blessing, and his leadership will be sorely missed."
###
STATEMENT BY SENATOR PATRICK LEAHY REGARDING ATTORNEY GENERAL ERIC HOLDER
“Attorney General Holder has been an extraordinary leader of the Department of Justice, and is to be congratulated for his service. Under his leadership, the Department has had remarkable success in convicting terrorists and disrupting threats to national security, while upholding the Department’s mission of keeping our communities safe from crime and fighting fraud. I particularly appreciate how Attorney General Holder has restored the Civil Rights Division to its historical mission. His dedication to defending Americans’ voting rights, at a time when these constitutional rights are under attack, has been supremely important. Attorney General Holder has demonstrated his commitment to protecting the civil rights of all Americans with his thoughtful implementation of both the Matthew Shepard Hate Crimes Act and the Violence Against Women Reauthorization Act. His recent focus on the need for sentencing reform and programs to reduce recidivism have brought to the fore an important conversation we as a nation must have. I thank Attorney General Holder for his service, and I wish him and his wife Sharon the very best in the future.”
###
STATEMENT BY SENATOR BARBARA A. MIKULSKI REGARDING ATTORNEY GENERAL ERIC HOLDER
“During his six years as Attorney General, Eric Holder Jr., supported our federal law enforcement agents in the fight against criminals and terrorists and was a strong advocate for civil rights and criminal justice reform.
“In the dark days of sequester and shutdown, Attorney General Holder worked closely with me in my role as CJS Chairwoman to keep DOJ and its people on the job and on the case.
“As one of the longest serving members of President Obama’s cabinet, he has served his nation and his President well.
"I thank him for his dedicated service to our country and wish him well in the future.”
###
STATEMENT BY SENATOR BILL NELSON REGARDING ATTORNEY GENERAL ERIC HOLDER
“During his six years as Attorney General, Eric Holder Jr., supported our federal law enforcement agents in the fight against criminals and terrorists and was a strong advocate for civil rights and criminal justice reform.
“In the dark days of sequester and shutdown, Attorney General Holder worked closely with me in my role as CJS Chairwoman to keep DOJ and its people on the job and on the case.
“As one of the longest serving members of President Obama’s cabinet, he has served his nation and his President well.
"I thank him for his dedicated service to our country and wish him well in the future.”
###
TWEET BY REPRESENTATIVE JOHN LEWIS REGARDING ATTORNEY GENERAL ERIC HOLDER
“I deeply saddened to learn today that the U.S. Attorney General, Eric Holder, is stepping down.”
###
TWEET BY SENATOR SHELDON WHITEHOUSE REGARDING ATTORNEY GENERAL ERIC HOLDER
“Thank you, Attorney General #Holder, for restoring confidence & morale and bringing honor & dignity to @TheJusticeDept for the last 6 years.”
###
TWEET BY SENATOR PATRICK LEAHY REGARDING ATTORNEY GENERAL ERIC HOLDER
“Will talk with Andrea Mitchell @mitchellreports @MSNBC in a few minutes, about Eric Holder.”
###
TWEET BY SENATOR CHUCK SCHUMER REGARDING ATTORNEY GENERAL ERIC HOLDER
“AG Holder was like ‘Horatius at the Bridge’ preventing or slowing down the regressive march to take away people’s hard-earned rights.”
###
TWEET BY SENATOR LINDSEY GRAHAM REGARDING ATTORNEY GENERAL ERIC HOLDER
“I appreciate AG Holder’s service to our country even though we had strong disagreements at times. I wish him well in future endeavors.”
###
Statement of U.S. Attorney Jenny A. Durkan on Service of Attorney General Eric H. Holder, JrRead the Press Release
Today, President Obama and Attorney General Eric Holder announced the Attorney General will be resigning. For six years Attorney General Holder has led the Department of Justice with honesty, integrity and a profound commitment to justice. He has worked tirelessly to keep our country and our people safe. It has been my privilege to work with Attorney General Holder for five years. I am grateful for his service and wish him well as he returns to private life and new challenges.
St. Thomas Man Sentenced to 120 Months in PrisonRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Jace Antonio Edwards, 41, to 120 months in prison for attempted possession of cocaine with intent to distribute, United States Attorney Ronald W. Sharpe announced.
After a three-day jury trial, on March 19, 2014, Edwards was convicted of attempted possession of cocaine with intent to distribute. Evidence at trial established that on October 22, 2011, Edwards attempted to retrieve six kilograms of sham cocaine that he believed had been shipped to Atlanta from St. Thomas as part of a drug conspiracy. Leayle Benjamin, Jr., Aben Marrero and Michael Samuels, all of whom were convicted in a separate trial, conspired to smuggle cocaine through the Cyril E. King Airport in St. Thomas to Atlanta, Georgia. Benjamin and Marrero were employees of the Virgin Islands Port Authority assigned to the maintenance division. The cocaine was passed to a co-conspirator under the partitions in the bathroom of the Cyril E. King Airport. The co-conspirator was arrested at the Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia after arriving on board a flight from St. Thomas with 7.025 kilograms of cocaine in his carry-on suitcase. The co-conspirator agreed to cooperate with the government and made consensually monitored telephone calls that resulted in theapprehension of Edwards. During his trial, Edwards was acquitted of the conspiracy count. The coconspirator pleaded guilty in the Northern District of Georgia to importation of cocaine, and testified in the Edwards trial.
In addition to 120 months in prison, Edwards was sentenced to five years of supervised release, and ordered to pay $100 special assessment and forfeit $113,400 to the United States. Edwards was remanded to the custody of the U.S. Marshals Service.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations and the Bureau of Immigration and Customs Enforcement, the Drug Enforcement Administration and the Federal Bureau of Investigation. Assistant U.S. Attorney Nelson L. Jones prosecuted the case.
St. Paul Attorney Sentenced for Failure to Pay TaxesRead the Press Release
Ronald A. Cimino, Deputy Assistant Attorney General, Department of Justice, Tax Division, Andrew M. Luger, United States Attorney for the District of Minnesota, and Special Agent in Charge Kelly R. Jackson of the St. Paul Field Office Internal Revenue Service (“IRS”) Criminal Investigation, announced today that BARRY VAUGHN VOSS of St. Paul, Minnesota, was sentenced to serve three years of probation with 90 days in a halfway house, perform 300 hours of community service and ordered to pay restitution in the amount of $244,922. In May 2013, VOSS was disbarred from the practice of law by the Supreme Court of Minnesota after being a practicing attorney for more than thirty years.
VOSS pleaded guilty in May to a one-count felony Information charging him with failure to pay over income, Medicare and Social Security taxes for the fourth quarter of 2008. These taxes were withheld from the salaries of employees of his law firm, Barry V. Voss, P.A. According to the plea agreement, VOSS filed quarterly employment tax returns with the IRS from July 2007 through December 2010 which reflected taxes withheld from the salaries of the employees of his law firm, including VOSS’s own salary, but failed to timely pay over to the IRS the full amount of the taxes due and owing totaling just under $160,000. VOSS admitted that he intentionally failed to pay these taxes to the IRS.
This case is the result of a long-term investigation by the IRS Criminal Investigation Division. It is being prosecuted by Trial Attorney Lori A. Hendrickson of the Department of Justice, Tax Division, and Assistant United States Attorney Karen Schommer.
Defendant Information:
BARRY VAUGHN VOSS, 62
St. Paul, MN
Convicted:
• Failure to Account for and Pay Over Withheld Taxes, 1 count
Sentenced:
• 3 years probation
• 300 hours community service
• $244,922 restitution###
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
South Carolina State Former Counsel Sentenced in Connection with Kickback SchemeRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Charleston, South Carolina ---- Acting United States Attorney Beth Drake stated today that Edwin Donald Givens, age 51, of Columbia, South Carolina, was sentenced today in federal court after earlier pleading guilty to misprision of a felony in connection with a kickback scheme related to the 2011 South Carolina State University homecoming concert, in violation of Title 18, United States Code, Section 4.
United States District Judge David C. Norton sentenced Givens to 6 months probation. The Government recommended the probationary sentence because of Givens’ cooperation and substantial assistance in the case of United States v. Jonathon Pinson.
Evidence presented at the plea hearing established that Givens had actual knowledge of the commission of a federal felony offense involving the solicitation, receipt and payment of kickbacks by others involved with the concert, and that he failed to disclose such knowledge and took affirmative steps to conceal such information from federal law enforcement agents investigating the scheme, both prior to and during a November 14, 2011, interview with agents of the Federal Bureau of Investigation.
The case was investigated by agents of the Federal Bureau of Investigation (FBI), the South Carolina Law Enforcement Division (SLED), the Department of Housing and Urban Development, Office of Inspector General (HUD-OIG) and the Internal Revenue Service (IRS-CI). This case and its companion cases are being prosecuted by Assistant United States Attorneys Nancy C. Wicker, Jane B. Taylor, DeWayne Pearson and J.D. Rowell.Seven Defendants Indicted and Three Other Defendants Plead Guilty for Their Roles in $56 Million Medicare Fraud SchemeRead the Press Release
A New Orleans grand jury today indicted seven defendants for their roles in a $56 million Medicare fraud scheme that operated in New Orleans and surrounding communities. Thirteen defendants have now been charged in this case, three of whom pleaded guilty to their conduct yesterday.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite Jr. of the Eastern District of Louisiana, Special Agent in Charge Michael Anderson of the FBI’s New Orleans Field Office and Special Agent in Charge Mike Fields of the Dallas Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
Paige Okpalobi, 57, of Slidell, Louisiana; Joe Ann Murthil, 57, of New Orleans; Latausha Dannel, 34, of Laplace, Louisiana; Dr. Winston Murray, 62, of Hammond, Louisiana; Dr. Divini Luccioni, 53, of Kenner, Louisiana; Christopher White, 48, of Destrehan, Louisiana; and Beverly Breaux, 66, of New Orleans, were charged in connection with their roles in a home health care fraud scheme involving thousands of Medicare recipients. Mark Morad, 51, of Slidell; Dr. Barbara Smith, 65, of Metairie, Louisiana; and Dr. Roy Berkowitz, 68, of Slidell, had been previously charged for their participation in the scheme, and today’s indictment added new charges against them.
The second superseding indictment comes one day after Dr. Alvin Darby, 58, of Slidell; Demetrius Temple, 54, of New Orleans; and Nicole Oliver, 44, of Napoleonville, Louisiana, each pleaded guilty to conspiracy to commit health care fraud for their roles in the scheme. Sentencing for each is scheduled for Jan. 7, 2015 before U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana.
The indictment alleges that the defendants operated a number of companies in and around New Orleans that purported to offer home health services and durable medical equipment to Medicare beneficiaries. The companies, Interlink Health Care Services Inc., Memorial Home Health Inc., Lakeland Health Care Services Inc., Lexmark Health Care LLC, Med Rite Pharmacy Inc. and Medical Specialists of New Orleans, billed Medicare claiming that they provided home health services and durable medical equipment to Medicare beneficiaries, but the vast majority of these services and equipment were not medically necessary or not provided.
The indictment further alleges that Morad and Okpalobi owned and directed operations at these companies. Morad allegedly paid kickbacks to patient recruiters, including Temple and Oliver, to provide Medicare beneficiary numbers that were then used to bill Medicare. To conceal these kickbacks, Morad allegedly laundered Medicare money through a separate company he owned.
Court documents also allege that Okpalobi instructed doctors, including Smith, Berkowitz, Murray, Luccioni, and Darby, to falsely certify that beneficiaries were qualified for home health services, and to prescribe durable medical equipment that was not medically needed. These false certifications and prescriptions were then used to bill Medicare for the unnecessary services and equipment.
Murthil and Dannel were office managers who allegedly oversaw daily operations at the home health companies. White allegedly performed accounting services for these companies, and helped conceal the scheme by fabricating false tax and employee records. Breaux was a registered nurse who is alleged to have falsely certified that home health clients were homebound, and that she had provided home health care services when she had not.
From 2007 through 2014, the companies allegedly involved in the scheme submitted more than $56 million in claims to Medicare, the majority of which are allegedly fraudulent. Medicare paid approximately $50.7 million on those claims.
The charges contained in this indictment are merely accusations, and the defendants are innocent unless and until proven guilty.
The case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. The case is being prosecuted by Trial Attorney William G. Kanellis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrice Harris Sullivan of the Eastern District of Louisiana.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
# # #
Seven Defendants Indicted and Three Other Defendants Plead Guilty for Their Roles in $56 Million Medicare Fraud SchemeRead the Press Release
A New Orleans grand jury today indicted seven defendants for their roles in a $56 million Medicare fraud scheme that operated in New Orleans and surrounding communities. Thirteen defendants have now been charged in this case, three of whom pleaded guilty to their conduct yesterday.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite Jr. of the Eastern District of Louisiana, Special Agent in Charge Michael Anderson of the FBI’s New Orleans Field Office and Special Agent in Charge Mike Fields of the Dallas Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
Paige Okpalobi, 57, of Slidell, Louisiana; Joe Ann Murthil, 57, of New Orleans; Latausha Dannel, 34, of Laplace, Louisiana; Dr. Winston Murray, 62, of Hammond, Louisiana; Dr. Divini Luccioni, 53, of Kenner, Louisiana; Christopher White, 48, of Destrehan, Louisiana; and Beverly Breaux, 66, of New Orleans, were charged in connection with their roles in a home health care fraud scheme involving thousands of Medicare recipients. Mark Morad, 51, of Slidell; Dr. Barbara Smith, 65, of Metairie, Louisiana; and Dr. Roy Berkowitz, 68, of Slidell, had been previously charged for their participation in the scheme, and today’s indictment added new charges against them.
The second superseding indictment comes one day after Dr. Alvin Darby, 58, of Slidell; Demetrius Temple, 54, of New Orleans; and Nicole Oliver, 44, of Napoleonville, Louisiana, each pleaded guilty to conspiracy to commit health care fraud for their roles in the scheme. Sentencing for each is scheduled for Jan. 7, 2015 before U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana.
The indictment alleges that the defendants operated a number of companies in and around New Orleans that purported to offer home health services and durable medical equipment to Medicare beneficiaries. The companies, Interlink Health Care Services Inc., Memorial Home Health Inc., Lakeland Health Care Services Inc., Lexmark Health Care LLC, Med Rite Pharmacy Inc. and Medical Specialists of New Orleans, billed Medicare claiming that they provided home health services and durable medical equipment to Medicare beneficiaries, but the vast majority of these services and equipment were not medically necessary or not provided.
The indictment further alleges that Morad and Okpalobi owned and directed operations at these companies. Morad allegedly paid kickbacks to patient recruiters, including Temple and Oliver, to provide Medicare beneficiary numbers that were then used to bill Medicare. To conceal these kickbacks, Morad allegedly laundered Medicare money through a separate company he owned.
Court documents also allege that Okpalobi instructed doctors, including Smith, Berkowitz, Murray, Luccioni, and Darby, to falsely certify that beneficiaries were qualified for home health services, and to prescribe durable medical equipment that was not medically needed. These false certifications and prescriptions were then used to bill Medicare for the unnecessary services and equipment.
Murthil and Dannel were office managers who allegedly oversaw daily operations at the home health companies. White allegedly performed accounting services for these companies, and helped conceal the scheme by fabricating false tax and employee records. Breaux was a registered nurse who is alleged to have falsely certified that home health clients were homebound, and that she had provided home health care services when she had not.
From 2007 through 2014, the companies allegedly involved in the scheme submitted more than $56 million in claims to Medicare, the majority of which are allegedly fraudulent. Medicare paid approximately $50.7 million on those claims.
The charges contained in this indictment are merely accusations, and the defendants are innocent unless and until proven guilty.
The case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. The case is being prosecuted by Trial Attorney William G. Kanellis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrice Harris Sullivan of the Eastern District of Louisiana.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.justice.gov/criminal-fraud/health-care-fraud-unit.
(Download Factual Basis - Alvin Darby )
(Download Factual Basis - Demetrius Temple )
(Download Factual Basis - Nicole Oliver )
(Download Superseding Indictment )
Sacramento Man Sentenced to 10 Years in Prison for Enticement of a MinorRead the Press Release
SACRAMENTO, Calif. — Nicholas Perry, 37, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to 10 years in prison, to be followed by a lifetime of supervised release, for attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2012, an undercover detective with the Sacramento Internet Crimes Against Children (ICAC) Task Force began communicating with Perry and offered to introduce Perry to a minor girl. Perry agreed to meet a fictional father and daughter in order to have sex with the daughter. When Perry arrived at the meeting place, he was arrested.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Rochester Man and Woman Sentenced in Oxycontin Distribution ConspiracyRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Jimmie Lee Simmons, 60, of Rochester, NY, who was convicted of acquiring Oxycodone through fraud, was sentenced by U.S. District Judge David G. Larimer to six months in prison and ordered to pay restitution of $367.55. In addition, Shantel Williams, 37, also of Rochester, who was convicted of conspiring to fraudulently obtain and distribute Oxycodone, was sentenced by Judge Larimer to 12 months and ordered to pay restitution totaling $11,135.70.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Shantel Williams wrote fraudulent prescriptions for OxyContin, which she then sold to Jimmie Lee Simmons and James Marsh. Simmons located individuals willing to participate in the scheme by sharing their Medicaid information with him. Simmons provided the Medicaid information to Williams, who wrote fraudulent scripts using this information, and sold them to Simmons for $860 each. Simmons then took the named beneficiaries to local pharmacies to fill the prescriptions, and paid them $100 for each prescription. From July 2008 to March 2010, Williams wrote and sold at least 20 fraudulent OxyContin prescriptions.
Williams and Simmons were arrested along with five others in December 2012. All seven defendants have been convicted.
The sentencing was the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division, and Investigators of the New York State Attorney General, Medicaid Fraud Control Unit, under the direction of Acting Director Amy Held.Rochester Man Sentenced on Fraud ChargesRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Kenyatta Hubbard, 33, of Rochester, NY, who was convicted of conspiring to defraud the United States, was sentenced by U.S. District Judge David G. Larimer to five years probation.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Hubbard worked at McFarland Tax Company which was owned by co-defendant Chauncee McFarland who has also been convicted of conspiring to defraud the United States. Between January 2010 and February 2012, Hubbard worked with McFarland to prepare dozens of false income tax returns for clients, including fake Forms W-2, in order to fraudulently increase the size of the refunds claimed. As a result of the scheme, the Internal Revenue Service paid more than $400,000 in improper refunds.
The sentencing is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.Remarks by Attorney General Eric Holder Announcing His Plans to Depart Justice DepartmentRead the Press Release
I come to this moment with very mixed emotions. Proud of what the men and women of the Department of Justice have accomplished over the last six years and, at the same time, very sad that I will not be a formal part of the great things that this department and this President will accomplish over the next two.
I want to thank you, Mr. President, for the opportunity you gave me to serve and for giving me the greatest honor of my professional life. We have been great colleagues, but the bonds between us are much deeper than that. In good times and bad, in things personal and professional, you have been there for me. I am proud to call you my friend. I am also grateful for the support you have given me and the department as we have made real the visions that you and I have always shared. I often think of those early talks between us and our belief that we might help to craft a more perfect Union. Work remains to be done – but our list of accomplishments is real. Over the last six years, our Administration has made historic gains in realizing the principles of the founding documents, and fought to protect the most sacred of American rights: the right to vote. We have begun to realize the promise of equality for our LGBT brothers and sisters and their families. We have begun to significantly reform our criminal justice system and reconnect those who bravely serve in law enforcement with the communities they protect. We have kept faith with our belief in the power of the greatest judicial system the world has ever known to fairly and effectively adjudicate any cases that are brought before it, including those that involve the security of the nation we both love so dearly. We have taken steps to protect the environment and make more fair the rules by which our commercial enterprises operate. And we have held accountable those who would harm the American people either through violent means or the misuse of economic or political power.
I have loved the Department of Justice ever since, as a young boy, I watched Robert Kennedy prove during the Civil Rights Movement how the department can – and must – always be a force for that which is right. I hope that I have done honor to the faith you placed in me, Mr. President, and to the legacy of all those that served before me.
I would also like to thank the Vice President, who I have known for so many years and in whom I have found great wisdom, unwavering support, and a shared vision of what America can, and should, be. I want to recognize my good friend Valerie Jarrett, whom I’ve been fortunate to work with from the beginning of what started as an improbable, idealistic effort by a young senator from Illinois who we were both right to believe would achieve greatness. I have had the opportunity to serve in your distinguished Cabinet and worked with a White House staff, ably led by Denis McDonough, that has done much to make real the promise of our democracy. And each of the men and women who I have come to know will be lifelong friends.
Whatever my accomplishments, they could not have been achieved without the love, support, and guidance of two people who are not with me today. My parents, Eric and Miriam Holder, nurtured me and my accomplished brother William and made us believe in the value of individual effort and the greatness of this nation.
My time in public service, which now comes to an end, would not have been possible without the sacrifices – too often unfair – made by the best three kids a father could ask for. Thank you, Maya, Brooke, and Buddy.
And finally I want to thank the woman who sacrificed the most and allowed me to follow my dreams. She is the foundation of all that our family is and the basis of all that I have become. My wife, Sharon, is the unsung hero and my life partner. Thank you for all that you have done. I love you.
In the months ahead, I will leave the Department of Justice – but I will never leave the work. I will continue to serve and try to find ways to make our nation even more true to its founding ideals. I thank the dedicated public servants who form the backbone of the United States Department of Justice for their tireless work over the past six years, for the efforts they will continue, and for the progress they made that will outlast us all.
And I thank you all for joining me on a journey that now moves in another direction, but that will always be guided by the pursuit of justice and aimed at the North Star.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Pittsburgh Man to Serve 5 Years in Federal Prison for Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH – Khalid Kareem, of Pittsburgh, Pa., was sentenced to 60 months in prison for conspiring to distribute over 100 grams of heroin, United States Attorney David J. Hickton announced today.
Kareem, 30, was sentenced in Pittsburgh by United States District Judge Nora Barry Fischer. Judge Fischer directed the sentence to run consecutive to a state prison sentence that was imposed in 2012 for heroin trafficking. Judge Fischer also imposed a five-year term of supervised release to follow the federal prison sentence.
During 2011 and 2012, Kareem, also known as “S Money”, was on bond in a state court case for heroin trafficking. While on bond in the state case, Kareem supplied hundreds of grams of heroin to other heroin dealers in Western Pennsylvania on multiple occasions. Kareem would acquire the heroin from an out-of-state source of supply he was connected with. Kareem would also invest in the heroin re-supply ventures of a large-scale heroin trafficking organization with several members from or associated with Pittsburgh’s Larimer neighborhood.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the conviction and sentence in this case.
Pennsylvania Priest Charged with Child Exploitation CrimesRead the Press Release
JOHNSTOWN, Pa. — A Pennsylvania Roman Catholic priest was charged Thursday with engaging in illicit sexual conduct and possession of child pornography, U.S. Attorney David J. Hickton announced today. The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Pittsburgh.
Joseph D. Maurizio, Jr., 69, a priest of the Diocese of Altoona-Johnstown, was charged by criminal complaint with engaging in illicit sexual activity in Central America, and with possessing child pornography at the rectory at Our Lady Queen of Angels Church. Maurizio made an initial appearance in federal court Thursday and was ordered held until his detention hearing on Monday.
According to the complaint, it is alleged that every year between 1999 and 2009 Maurizio traveled from Pennsylvania to Honduras to assist a non-profit organization that provides services to children there. Each trip lasted two to three weeks.
The HSI Pittsburgh Investigation that began in February revealed that during the timeframe in which he traveled to Honduras, Maurizio engaged in various and numerous unlawful sexual activities with minors. However, after the charged illicit sexual conduct occurred in March of 2009, Maurizio did not engage in any foreign travel again until July of 2011. From July 2011 through the present, foreign travel records indicate that Maurizio has made approximately 10 separate trips to various Central American countries. On September 12, search warrants were executed at the rectory at Our Lady Queen of Angels Church in Central City, Pennsylvania, and a farm owned by Maurizio in Windber. Dozens of pieces of evidence were seized from the rectory including four computers, a laptop, hundreds of CDs, a loose hard drive, camera, floppy disks, thumb drives, VHS tapes and media cards. Suspected Images of child pornography were found on the loose hard drive.
HSI requests that anyone with information about this person contact the agency by calling the 24-hour HSI Tip line at 1-866-DHS-2ICE. The public can also submit an online tip at www.ice.gov/tips/ or by downloading the Operation Predator smartphone app and submitting a tip via the app. All tips will remain anonymous.
U.S. Attorney Hickton commended HSI Pittsburgh for their investigation in this case and encouraged citizens with information to call the Tip line or submit a tip online or through the app.
This investigation was conducted under HSI’s Operation Predator, an international initiative to protect children from sexual predators. Since the launch of Operation Predator in 2003, HSI has arrested more than 10,000 individuals for crimes against children, including the production and distribution of online child pornography, traveling overseas for sex with minors, and sex trafficking of children. In fiscal year 2013, more than 2,000 individuals were arrested by HSI special agents under this initiative.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page. HSI is a founding member and current chair of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.
Owner of Home Health Agency Sentenced to Five Years in Prison for Structuring $1.8 Million in Cash Withdrawals to Conceal a $4.5 Million Healthcare Fraud SchemeRead the Press Release
The owner of a home health services company was sentenced to serve five years in prison for his leading role in a conspiracy to structure over $1.8 million in bank withdrawals to conceal a $4.5 million healthcare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge Lucy Cruz of the Houston Field Office of the Internal Revenue Service-Criminal Investigation Division (IRS-CI), Special Agent in Charge William Fergus of the Chicago Regional Office of the United States Railroad Retirement Board, Office of Inspector General (RRB-OIG), Special Agent in Charge Mike Fields of the Dallas Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement. U.S. District Judge Sim Lake of the Southern District of Texas imposed the sentence.
On April 16, 2014, Felix Maduka, 59, of Richmond, Texas, pleaded guilty to conspiring to structure more than $1.8 million in cash withdrawals and eight counts of structuring cash withdrawals from bank accounts where his company, Joystar Home Health Services LLC, received fraudulent payments from Medicare. His wife and co-defendant, Stella Maduka, 49, was Joystar’s Director of Nursing. In addition to the structuring charges, she also pleaded guilty to one count of healthcare fraud and one count of making false statements.
According court documents, Felix and Stella Maduka withdrew just under $10,000 in cash from Joystar bank accounts on nearly 300 occasions to avoid the bank’s mandatory reporting requirements of cash transactions involving more than $10,000 in cash. They engaged in this structuring scheme to conceal the monies used to pay illegal kickbacks to recruiters in exchange for referring Medicare beneficiaries to Joystar and to doctors for authorizing home health services that were not medically necessary nor provided. To further conceal the scheme, Felix and Stella Maduka fabricated patient records to support the fraudulent Medicare billing.
The case is being investigated by HHS-OIG, IRS-CI, RRB-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District Texas. The case is being prosecuted by Trial Attorney William S.W. Chang of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristine Rollinson of the Southern District Texas.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
# # #
North Adams Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON – A North Adams man pleaded guilty today in U.S. District Court in Springfield to possession of material involving the sexual exploitation of a minor.
Wade Galli, 47, pleaded guilty before U.S. District Judge Mark G. Mastroianni. On May 29, 2013, Galli possessed numerous digital files containing child pornography. Galli told investigators that he also filmed girls aged 13 to 20 at beaches in Pittsfield and Vermont, and he surreptitiously filmed videos at a nude beach in Vermont about a dozen times.Sentencing is scheduled for Jan. 8, 2015.
Pursuant to a plea agreement, Galli has agreed to be sentenced to between 36 and 108 months in prison, and 10 years of supervised release.United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case was investigated with the assistance of the Massachusetts State Police and the North Adams Police Department. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
New York City Housing Authority Employee Charged in Manhattan Federal Court with Embezzling Tenants’ Rent PaymentsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Mark G. Peters, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the arrest of KISHAWN SCARBORO, an employee of the New York City Housing Authority (“NYCHA”), for theft of government funds. SCARBORO, while employed as a NYCHA Housing Assistant, allegedly embezzled over $90,000 in tenant rent payments owed to NYCHA, and hid her embezzlement by manipulating tenant records in NYCHA’s computer system. SCARBORO voluntarily surrendered to DOI investigators this morning, and was presented this afternoon in Manhattan federal court before United States Magistrate Judge Kevin Nathaniel Fox. She was released on her own recognizance.
According to the allegations in the Complaint unsealed today in Manhattan federal court:
NYCHA is a New York City public entity that provides housing to low and moderate income New York City residents. NYCHA’s operations are funded, in part, by grants from the United States Department of Housing and Urban Development (“HUD”). Each year, HUD provides millions of dollars in grants to NYCHA. In addition to grants from HUD, NYCHA is funded through monthly rental payments made by individuals residing in NYCHA housing. NYCHA maintains a computerized rent collection system which creates an account ledger for each tenant. Each NYCHA housing development is managed by a Housing Manager, who is responsible for reviewing and approving all rent changes and credits. Housing Assistants are NYCHA employees assigned to a particular building or set of tenants for whom they act as the primary point of contact with NYCHA.
From at least June 2010 until September 2013, SCARBORO, using her position as a Housing Assistant at the Jefferson Houses in Harlem, Manhattan, obtained rent checks and money orders from NYCHA tenants and deposited them in her personal bank account by double-endorsing the instruments and/or altering the payee information. Then, using the username and password of her supervisor at the Jefferson Houses, SCARBORO hid her embezzlement by entering false credits and rent adjustments into NYCHA’s computerized rent collection system. SCARBORO deposited approximately $94,884 in checks and money orders into her personal bank account over the course of more than three years.
SCARBORO, 42, of Saylorsburg, Pennsylvania, is charged with one count of theft or bribery concerning programs receiving Federal funds, which carries a maximum sentence of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara thanked and praised the DOI for its work in this investigation, which he noted is ongoing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jessica K. Feinstein is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Kishawn Scarboro Complaint
Nevada Man Sentenced to 12 Years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nevada, Mo., man has been sentenced in federal court for receiving and distributing child pornography.
James D. Stevens, 50, of Nevada, Mo., was sentenced by U.S. District Judge Douglas Harpool on Tuesday, Sept. 23, 2014, to 12 years in federal prison without parole. The court also ordered Stevens to forfeit to the government a laptop computer, a tablet computer, various hard drives, nearly a thousand CDs and DVDs and other electronic memory devices, all of which were used to commit the offense.
On April 26, 2014, Stevens pleaded guilty to receiving and distributing child pornography. According to court documents, law enforcement officers identified Stevens’s computer as repeatedly distributing and receiving numerous videos and images of child pornography. On six separate occasions during their investigation, law enforcement officers received videos containing child pornography from Stevens’s computer through a file-sharing program, with up to 10 videos of child pornography received on each occasion. The videos contained images of children, from eight to 14 years old, being sexually exploited, molested, raped and abused. Additional videos of child pornography were discovered on Stevens’s computers after they were seized and examined.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Monroe County Man Charged with Heroin Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of an Information in U.S. District Court in Scranton today charging a Monroe County man with conspiracy to distribute heroin.
According to United States Attorney Peter Smith, Eric Rabb, age 45, of East Stroudsburg, Monroe County, is charged with participating in a conspiracy to distribute heroin in Monroe, Wayne and Lackawanna Counties in October of 2013.
The investigation was conducted by the Lackawanna County Drug Task Force, the Drug Enforcement Administration and the Wayne County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is imprisonment for twenty years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Moldovan National Pleads Guilty to Passport FraudRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Vasile Leu, 34, of Chisinau, Moldova, pleaded guilty to using a fraudulent Czech Republic passport before U.S. District Judge Charles P. Siragusa. The charge carries a maximum sentence of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the matter, stated that Leu entered the United States in 2012. Over a period of months, the defendant opened bank accounts at different banks in Wisconsin and California using false Czech Republic passports issued to him under various aliases. The bank accounts were used to receive proceeds from an internet fraud that targeted online purchasers of motor vehicles. Leu then transferred the proceeds of the fraud back to Eastern Europe.
The plea is the culmination of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for January 6, 2015, at 3:15 p.m. before Judge Siragusa.Missouri Man Pleads Guilty to Interstate StalkingRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
William McBroom-Stees, 42, of Springfield, Missouri, pleaded guilty on Tuesday in U.S.
District Court to interstate stalking. The defendant was indicted on June 3 and a superseding
indictment was returned on September 10.According to the superseding indictment and evidence introduced at the plea hearing,
between November 9 and November 21, 2013, McBroom-Stees made threatening telephone calls
from Missouri to his ex-girlfriend and mother of his child while she was driving from Illinois to
Rockland, Maine, where she was relocating. In the calls and text messages, McBroom-Stees
threatened to kill and harm her, her immediate family, and others. On November 13, McBroom-
Stees threatened that if she did not return to Missouri by their child’s birthday, he would “start
the worst f***ing bloodbath in America” and dared the police to come after him. That call was
recorded by the victim with the help of a Knox County Sheriff’s Office detective. Phone records
revealed McBroom-Stees placed hundreds of calls and sent numerous text messages to the
victim, many of which were threatening, causing substantial emotional distress to the victim and
her family.
McBroom-Stees faces up to 5 years in prison and a $250,000 fine. He will be sentenced
after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Knox County Sheriff’s Office, the Rockland
Police Department and the Federal Bureau of Investigation.Minnesota Business Owner Stole More Than $1 Million in Real Estate InvestmentsRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of MICHAEL JOHN MANGAN, 43, owner of multiple Minnesota-based businesses, on four counts of Wire Fraud and three counts of Mail Fraud. MANGAN is charged with stealing over $1 million of investment funds and loans which he claimed would be used to fund and grow his various real estate-oriented businesses.
According to documents filed in court, from October 2009 until at least November 2011, MANGAN was the principal officer of High Point Construction & Remodeling LLC, High Point Property Management LLC, High Point Group World Wide LLC, High Point Education LLC and Fortune Forward Education. As part of the scheme, MANGAN allegedly used these businesses to solicit thousands of dollars in investments and loans in various real estate-oriented projects.
During the indicted period, MANGAN was able to defraud his investors by lying about, among other things, the success and profitability of his businesses and providing investors with false financial statements to that effect. Other solicitation tactics that MANGAN used included the promise of company shares, employment and leadership positions on the board of directors of his companies and falsely representing that the companies’ business operations would generate returns on their investments.
According to the indictment, MANGAN used some of investors’ money to fund his own lifestyle, pay personal expenses and make Ponzi-type payments to other investors. When investors demanded repayment or threatened to report him to law enforcement, MANGAN would attempt to buy more time by making lulling payments or issuing checks he knew to be worthless.
This case is being prosecuted by Assistant U.S. Attorney Michelle E. Jones.
This case is the result of an investigation conducted by the Federal Bureau of Investigation.
Defendant Information:
MICHAEL JOHN MANGAN, 43
Charges:
• Wire Fraud, 4 counts
• Mail Fraud, 3 counts###
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Medical Center Inmate Sentenced to 19 Years for Assaulting Federal EmployeeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an inmate at the U.S. Medical Center for Federal Prisoners in Springfield was sentenced in federal court today for assaulting a federal correctional counselor at the facility.
Willard Begay, 34, an inmate at the U.S. Medical Center for Federal Prisoners in Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 19 years and seven months in federal prison without parole. The court also ordered Begay to pay $2,476 in restitution for the medical injuries of the victim.
On June 12, 2014, Begay was found guilty at trial of punching a counselor in the face and throwing a computer printer at the counselor’s face.
A counselor at the prison facility met with Begay on Oct. 1, 2012, to discuss the friction Begay was having with fellow inmates and to move Begay to another unit in order to eliminate the brewing conflict between Begay and fellow inmates. At the conclusion of their meeting, the counselor was attempting to secure Begay to move him to the new unit. The counselor grabbed Begay’s left arm in order to handcuff him, when Begay abruptly turned toward the counselor and punched him in the face with a closed fist. The counselor lost his balance and fell back a few feet. While he was still dazed from the punch, Begay removed a printer from a table in the office, raised it above his head, and smashed the printer onto the counselor’s face.
The counselor radioed for assistance and correctional officers entered the room and handcuffed Begay after a struggle. The counselor was transported to the hospital emergency room. A physician determined that he sustained an orbital floor fracture. The physician closed the wound with sutures and recommended the counselor to follow up with a plastic surgeon.
This case was prosecuted by Assistant U.S. Attorneys Abram McGull, II and Patrick Carney. It was investigated by the FBI.
Mastermind of Online Counterfeit Card Retail Shop Pleads GuiltyRead the Press Release
Fakeplastic.net Responsible for More than $30 Million in Fraud
NEWARK, N.J. – The mastermind of a one-stop online shop selling counterfeit payment cards and holographic overlays used by criminals to create fake driver’s licenses admitted today to running the fakeplastic.net website, which was responsible for an estimated $30 million in fraud, U.S. Attorney Paul J. Fishman announced.
Sean Roberson, 39, of Palm Bay, Florida, pleaded guilty today before U.S. Magistrate Judge James B. Clark, III in Newark federal court, to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit fraud and related activity in connection with authentication features.
According to documents filed in this case and statements made in court:
The fakeplastic.net website was a one-stop online shop operated by Roberson and used by criminals across the country to purchase customized counterfeit credit and debit cards used for unauthorized transactions with stolen payment card data, and holographic overlays used to make fake driver’s licenses.
During his guilty plea proceeding, Roberson admitted he began selling counterfeit cards and related items as early as April 2011 and launched the fakeplastic website in June 2012. Roberson owned and operated the website with the assistance of Vinicio Gonzalez and Hugo Rebaza. Roberson admitted that he and his conspirators fulfilled orders for approximately 69,000 counterfeit payment cards, more than 35,000 holographic stickers used to make counterfeit cards appear more legitimate and more than 30,000 state identification card holographic overlays. The orders – more than 3,600 parcels – were shipped through the U.S. mail.
Law enforcement estimates the losses associated with just the counterfeit payment cards trafficked by Roberson and his conspirators at more than $30 million. During his guilty plea, Roberson admitted he personally made more than $1.7 million from the scheme.
The fakeplastic website was used by various groups of criminals across the country often referred to as “carding” or “cash out” crews. These crews bought stolen payment card numbers and related information – referred to as “track data” or “dumps” – which typically appear on the magnetic stripe on the back of legitimate payment cards. Illegal vendors of that information usually get it through hacking or skimming operations involving the installation of specialized equipment at ATM locations or point-of-sale terminals. The stolen data was ultimately put on a counterfeit payment cards, purchased from Roberson, and used to make unauthorized transactions.
Both Gonzalez and Rebaza have pleaded guilty to charges in the Western District of North Carolina relating to their activity in connection with the website.
The conspiracy to commit wire fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. The conspiracy to commit fraud and related activity in connection with authentication features count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. A date for sentencing has not yet been determined.
U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates for the investigation leading to Roberson’s guilty plea.
The Computer Crimes and Intellectual Property Section (CCIPS) of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Western District of North Carolina have been partners in the prosecution.
The government is represented by Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section and Barbara Ward of the office’s Asset Forfeiture and money laundering unit.
14-343Defense counsel: Assistant Federal Public Defender Patrick McMahon Esq., Newark
Roberson, Sean Information
Mastermind of Multi-Million Dollar Advance Fee and Alaskan Gold Mine Investment Schemes Pleads GuiltyRead the Press Release
Earlier today, William C. Lange, 66, a resident of Gig Harbor, Washington, pleaded guilty to two counts charging conspiracy to commit wire fraud and conspiracy to commit securities fraud and wire fraud for his leadership role in two separate schemes. In the first scheme, Lange, the founder and President of Harbor Funding Group, Inc. (“HFGI”), defrauded developers and their clients seeking to rebuild regions of the South devastated by Hurricane Katrina of more than $9 million through false representations, including that HFGI had the funds to provide millions of dollars in private financing in exchange for a ten percent down payment.
In the second scheme, Lange, the founder and secret controller of Black Sand Mine, Inc. (“BSMI”), induced investors to purchase stock in BSMI by lies about, among other things, the qualifications and experience of BSMI’s officers and directors, and by concealing, among other things, his leadership role with BSMI.
Pursuant to his plea agreement with the government, Lange has agreed to a forfeiture money judgment of $10 million and to forfeit his claim to three Harley Davidson motorcycles purchased using proceeds from the fraud. When sentenced, Lange faces up to 20 years in prison and the payment of approximately $10 million in restitution to the victims of his frauds. In March 2014, co-defendants Brad Russell and Kristofor Lange were convicted by a federal jury in Brooklyn, following a six-week trial, on all charged counts. The trial of co- defendant Frank Perkins is scheduled to begin on September 22, 2014.1
The guilty verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector in Charge, New York Division, U.S. Postal Inspection Service (USPIS), and Frank Montoya, Jr., Special Agent in Charge,
Federal Bureau of Investigation, Seattle Field Office (FBI).
Lange, the orchestrator of the advance fee scheme, told land developers and their clients that HFGI had lenders and millions of dollars in funds available to provide financing for their real estate projects. As a condition for financing, HFGI required investors to place ten percent of the loan amount in an attorney escrow account. Contrary to Lange’s representations, HFGI did not have lenders or funds available to finance the loans. As soon as the money was placed in escrow, Lange and his co-conspirators stole it, at times through the use of a sham escrow agreement. Through this scheme, Lange and his co-conspirators stole more than $9 million from approximately 300 individuals. The $9 million was spent on, among other things, salaries, fishing and hunting trips for Lange and his son, remodeling and landscaping for Lange’s new house, and other business ventures started by Lange.
After the $9 million was spent, Lange and his co-conspirators moved on to BSMI and the gold mine investment scheme. BSMI claimed that it would mine gold and other precious metals on Sitkinak Island in Alaska. Through the use of in-person presentations, cold calls, and “webinars,” Lange and his co-conspirators convinced investors to purchase BSMI stock by lying to them about the credentials of BSMI’s officers and directors, BSMI’s assets and liabilities, the intended use of investor funds, and by concealing their prior involvement in HFGI. Lange also concealed his own tarnished name and his leadership role in BSMI. Almost $1 million collected from investors in BSMI was spent on salaries and other personal expenses for Lange and his co- conspirators.
“Lange exploited the demand for housing caused by the destructive force of Hurricane Katrina to execute his devious advance fee scheme. Hiding behind his Brooklyn- based attorney, Lange deceived investors to the tune of $9 million with false representations and assurances that were not worth the price of the paper used to print the phony documentation. His voracious appetite for easy money then led him to bilk another million dollars from investors in the gold mine scheme. He will now be held to account for his crimes,” stated United States Attorney Lynch. Ms. Lynch thanked the USPIS and the FBI for their hard work and dedication through the course of this five-year investigation and prosecution. Ms. Lynch also extended her grateful appreciation to the United States Attorney’s Office for the Western District of Washington for its assistance in the case.
The government’s case is being prosecuted by Assistant United States Attorneys
Winston M. Paes, Alixandra E. Smith, and Melanie Hendry.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
WILLIAM C. LANGE Age: 66
Residence: Gig Harbor, Washington
E.D.N.Y. Docket No. 10-CR-968 (DLI)
___________________________________________________________________________
1 The charges against Frank Perkins are merely allegations, and he is presumed innocent unless and until proven guilty.
Man Sentenced for Illegal Re-EntryRead the Press Release
Mauricio Nieves-Radilla, 36, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 24, 2014, for illegal re-entry of a previously deported alien into the United States. Nieves-Radilla was arrested in Casper, Wyoming. He received 16 months imprisonment, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Mammoth Lakes Man Sentenced to over 15 Years in Prison for Enticement of A MinorRead the Press Release
SACRAMENTO, Calif. — Gene Wayne Harris, 42, of Mammoth Lakes, was sentenced today by United States District Judge Morrison C. England Jr. to 15 years, and eight months in prison, to be followed by a lifetime of supervised release, for attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, on March 1, 2013, a woman from Mammoth Lakes received an unsolicited Facebook friend request from Harris. Before accepting the request, she looked up Harris and learned that he was a registered sex offender, having previously been convicted in Inyo County of sexual battery. At law enforcement’s direction, she responded to Harris through Facebook and an Internet-based text messaging service, and told him that she was only 14 years old. Harris acknowledged the statement that she was 14, commenting that her Facebook post says she is older. Harris also told her he could get in trouble if anyone found out they were talking.
Law enforcement assumed control of the woman’s account. During this time, Harris’s communications turned sexual, including requests by Harris for sexually explicit pictures of her. Plans were made for a meeting and on March 8, 2013, Harris checked in to a Mammoth motel and waited for the purported 14-year-old girl to arrive. While waiting, Harris communicated through text with law enforcement (posing as the girl), texting at one point that he could “get in trouble for what I am about to do, but it is worth it.” Law enforcement sent Harris a text while he was at the motel asking him to get something to drink and a candy bar. Harris was arrested while walking back to the motel from a convenience store with the drink and candy bar. Located in the motel room were condoms and alcohol.
At sentencing, Judge England said that the sentence imposed would “serve to protect the public from future conduct” by the defendant, and “be a deterrent for others who engage in this type of conduct.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Mono County District Attorney’s Office, and the Mammoth Lakes Police Department. Assistance was also provided by the Mono County Sheriff’s Department. Assistant United States Attorney Kyle Reardon prosecuted the case.Louisville Physician Charged with Prescribing Medications That Resulted in the Death of A PatientRead the Press Release
– Charges Include Multiple Counts Of Unlawful Distribution Of Controlled Substances, Health Care Fraud And Money Laundering
LOUISVILLE, Ky. – A Louisville physician was charged today, by a federal grand jury, with prescribing medications that resulted in the death of a patient, as well as multiple counts of unlawful distribution of controlled substances, health care fraud and money laundering announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the superseding indictment, George Kudmani, age 69, between July 29, 2009 and May 3, 2010, executed a scheme to defraud Medicare that ultimately resulted in a patient’s death on May 5, 2010. According to the charge, Kudmani fraudulently submitted claims for medically unnecessary services and dispensed medically unnecessary controlled substance prescriptions to the patient, in exchange for money, knowing that the patient would fill her prescriptions at pharmacies and pharmacies in turn would submit claims to health care programs for reimbursement. It’s alleged that those prescriptions ultimately resulted in the patient’s death.
Further, defendant Kudmani is charged with a second count of health care fraud for falsely and fraudulently billing Kentucky Medicaid (Passport) and other medical benefit programs by submitting claims for medically unnecessary Transvaginal Ultrasounds (TVS), TVSs not performed, and billing for TVS reports that were never prepared for patients, between January 2009 through September 2012.
The superseding indictment charges Kudmani with eleven additional counts, (for a total of 22) of unlawful distribution and intentionally distributing and dispensing controlled substances, not for a legitimate medical purpose and beyond the bounds of a professional medical practice, between July 2009 and September 2012. The controlled substances allegedly prescribed were Oxycodone, a schedule II controlled substance, and Hydrocodone, a schedule III controlled substance.
In addition, Kudmani is charged with one count money laundering for purchasing a 2012 Honda Accord with $15,000 in cash and a $5,971.63 check from money derived from an unlawful activity, that is the unlawful dispensing and distribution of controlled substances and health care fraud.
Beginning in December of 1980, Kudmani operated an obstetrician/gynecological medical practice located at 9702 Stonestreet Road, in Louisville, Kentucky. The practice did not employ any other individual with medical training. A typical first-time patient would pay $75 for a gynecological exam, and each visit thereafter, the patient would typically pay $35 in cash and receive a Schedule II-V controlled substance prescription without a physical examination.
Kudmani was initially charged in a 14 count indictment on December 4, 2013. If convicted at trial, Kudmani faces a maximum potential penalty of life in prison, a fine of $14,500,000, and a 5 year period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and was investigated by the United States Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Kentucky Medical Fraud Control Unit and Louisville Metro Police Department (LMPD).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Last Individual Sentenced in Cuban Alien Smuggling ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich yesterday sentenced Yoel Emilio Baez-Hernandez (41, Hialeah) to five years in federal prison for conspiring to bring 73 illegal Cuban aliens to the United States and for bringing 13 illegal Cuban aliens to the United States. The Court also ordered Baez-Hernandez to pay a $73,000.00 fine and to forfeit an outboard motor go-fast vessel, a 2006 BMW vehicle, a liquor store license, equipment, and inventory that are traceable to proceeds of the offenses. As part of his sentence, the Court also entered a money judgment in the amount of $730,000.00, the proceeds of the charged criminal conduct. A federal jury found Baez-Hernandez guilty on July 2, 2014.
According to court testimony and documents, Baez-Hernandez and his cousin, Edel Mesa-Hernandez (36, Miami), approached Carlos Velazquez-Roman (41, North Port) in late 2006 or early 2007, and suggested they start smuggling Cubans into the United States for profit, using a duel outboard engine go-fast vessel that Baez-Hernandez had purchased for that purpose. Between March 2007 and December 2009, at least 73 illegal aliens were smuggled into the United States. The smugglers charged an average of $10,000 per alien smuggled. One of the last trips made before Baez-Hernandez left the conspiracy was in May 2009, when Velazquez-Roman and Baez-Hernandez traveled to Cuba and smuggled 13 Cuban aliens into the United States, including Baez-Hernandez’s aunt. The conspiracy continued after December 2009, when Velazquez-Roman purchased another go-fast vessel. He and Mesa-Hernandez made additional trips to Cuba to smuggle more aliens into the United States. The last such trip took place in October 2013.
Altogether, the conspiracy accounted for more than 150 illegal Cuban aliens being brought into the United States between 2007 and 2013. Also assisting in this conspiracy were Jasmine Santos-Martinez (41, North Port), the spouse of Velazquez-Roman, Mario Emilio Tamayo-Mejias (52, Port Charlotte), who assisted Velazquez-Roman on a smuggling trip in May 2013, and Amable Gonzalez-Mandin (56, Hialeah), who made arrangements for two illegal Cuban aliens to be smuggled into the United States in May 2013.
Carlos Velazquez-Roman pleaded guilty on June 6, 2014. He was sentenced on September 10, 2014, to four years’ imprisonment and ordered to pay a money judgment in the amount of $1.53 million. In addition, he was ordered to forfeit his residence and other property, a vehicle, his go-fast vessel, and $30,000.00 that was found in his home.
Jasmine Santos-Martinez pleaded guilty on May 21, 2014. She was sentenced on September 10, 2014, to time served--approximately six months and five days. She was also ordered to pay a money judgment in the amount of $1.53 million, in addition to forfeiting her residence and other property, a vehicle, the go-fast vessel, and $30,000.00 found in her home.
Mario Emilio Tamayo-Mejias pleaded guilty on June 6, 2014. He was sentenced on September 10, 2014, to five years’ probation and ordered to pay a money judgment in the amount of $50,000.00.
Amable Gonzalez-Mandin pleaded guilty on May 27, 2014. He was sentenced to five years’ probation on September 10, 2014.
Edel Mesa-Hernandez pleaded guilty on April 29, 2014. He was sentenced on August 1, 2014, to one year and one day imprisonment, and ordered to pay a money judgment in the amount of $1.53 million.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Border Patrol, and the U.S. Coast Guard Investigative Service. It was prosecuted by Assistant United States Attorney Donald L. Hansen.
Las Vegas Urologist Convicted of Unlawful Re-Use of Needle Guides During Prostate ProceduresRead the Press Release
LAS VEGAS, Nev. – Las Vegas urologist, Michael Stanley Kaplan, 59, was convicted by a federal jury today of conspiracy to commit adulteration for re-using single use needle guides during prostate procedures, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Dr. Kaplan made a decision to re-use needle guides in a manner that caused them to be adulterated for the purpose of enriching himself,” said U.S. Attorney Bogden. “He also concealed from his patients that they were undergoing procedures with re-used needle guides. Such conduct is a felony when performed with the intent to defraud or mislead. This case underscores our commitment to holding accountable those medical professionals who would endanger patients for their own personal profit.”
At the time of the offense, Dr. Kaplan operated Green Valley Urology. According to the evidence presented at trial, Kaplan re-used single-use plastic needle guides during prostate procedures, causing a significant health risk to his patients. The packaging on each needle guide clearly warned that they should not be used more than once, but Dr. Kaplan instructed his staff and permitted his staff to re-use them three to five times prior to disposal. Between about Dec. 15, 2010, and March 11, 2011, Dr. Kaplan performed approximately 120 procedures requiring a needle guide but used less than 10 guides during that period.
Dr. Kaplan was acquitted of making false representations to Food and Drug Administration (FDA) investigators regarding the duration of his re-use of the needle guides.
Dr. Kaplan is released on a personal recognizance bond and is scheduled to be sentenced on Jan. 30, 2015. He faces up to five years in prison and a fine of up to $250,000.
The case was investigated by the FDA Office of Criminal Investigations and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz and Special Assistant U.S. Attorney Peter J. Leininger.Kingsville Couple Plead Guilty to $567,000 Bank Fraud for Lee's Summit Construction ProjectRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kingsville, Mo., husband and wife pleaded guilty in federal court today to a $567,000 bank fraud scheme related to his work on a Lee’s Summit, Mo., subdivision.
Dennis R. Key, 51, and his wife, Michal Ann Key, 49, both of Kingsville, pleaded guilty in separate appearances before U.S. Chief District Judge Greg Kays to bank fraud.
By pleading guilty today, the Keys admitted that they engaged in a bank fraud scheme from August 2006 to November 2009 in which they stole as much as $567,767. Dennis Key is the owner of DM & Associates, LLC, a land surveying and engineering consulting business in the Kansas City area. Michael Key did administrative and clerical work for the business, including bookkeeping, paying bills and writing checks.
On Jan. 17, 2005, Dennis Key entered into an employment agreement with Burkart Enterprises, Inc., to provide construction management services for a subdivision in Lee’s Summit for which he would be paid $35,000. On Feb. 2, 2005, Dennis Key entered into another employment agreement with Burkart to be a builder’s representative for the construction of a house in Lee’s Summit, for which he would be paid $100,000.
In August 2006, Dennis Key arranged for JM Contractors to act as general contractor for the construction work and to subcontract work to be performed. He instructed JM Contractors to add an extra five percent to its fee, which would be paid to Dennis Key. Dennis Key also instructed JM Contractors that its fee and the additional fees were not to be identified on the bills submitted by the company, but rather were to be added into each line item on the bills.
The Keys also prepared false, inflated bills and invoices in the names of Contracting Services and Mid America Construction, which were actually shell companies they created. They presented the inflated bills and invoices to Burkart, representing that the bills and invoices were for services rendered. Burkart reviewed the false, inflated bills and invoices, and, believing the payments were to entities that had performed the work stated, wrote checks for the amounts presented then gave the checks to the Keys.
Dennis Key arranged with BKB Concrete and Construction to perform work on the project, instructing the owner of BKB Concrete and Construction to submit all bills to him. On Aug. 18, 2008, Michal Key opened a business checking account in his name DBA BKB Concrete. This name was intentionally similar to and sounded like the name “BKB Concrete and Construction.” When they received BKB Concrete and Construction bills, the Keys prepared false, inflated bills for the services in the name BKB Concrete and submitted the inflated bills to Burkart rather than the true bills for the services rendered. Burkart reviewed the inflated bills and, believing the payments were to the entity that had performed the work, wrote checks for the amounts presented to him and gave the checks to the Keys. They deposited the checks into their BKB Concrete account then transferred some of the funds to their DM & Associates bank account in order to pay the bills from BKB Concrete and Construction.
Dennis Key obtained other subcontractors and entities to perform work on the property and instructed the subcontractors to submit their bills to him. When the Keys received bills from other subcontractors and entities they prepared false and inflated bills and submitted false, inflated invoices to Burkart, representing that the bills were for the services rendered. Burkart reviewed the inflated bills and, believing the payments were to the entity that had performed the work, wrote checks for the amounts presented then gave the checks to the Keys.
Under federal statutes, the Keys are each subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the U.S. Secret Service and the Lee’s Summit, Mo., Police Department.Justice Department Settles Lawsuit Against the City of North Las Vegas, Nevada, over Disability DiscriminationRead the Press Release
The Justice Department today announced that it has reached an agreement with the city of North Las Vegas under the Americans with Disabilities Act (ADA). The agreement, filed as a consent decree along with a complaint in the U.S. District Court for the District of Nevada, resolves allegations that the city violated the ADA by failing to accommodate, and forcing out, a Parks Department maintenance crew leader with monocular vision. The Justice Department alleged that the city revoked the employee’s long standing reasonable accommodation, which exempted him from obtaining a commercial driver’s license, even though the employee was able to perform the essential functions of the job with the reasonable accommodation and the accommodation did not impose an undue hardship on the city.
“Revoking a reasonable accommodation is a clear violation of the ADA, absent undue hardship on the employer,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Justice Department is committed to knocking down barriers to equal employment opportunities for people with disabilities. We applaud the city for working cooperatively with the department to promptly resolve this matter.”
The consent decree, which must be approved by the court, requires the city to pay the employee $38,229 for monetary and compensatory damages, provide training to city staff on Title I of the ADA, and file periodic reports with the department.
Title I of the ADA prohibits employers from discriminating against individuals on the basis of disability in various aspects of employment. These prohibitions include using qualification standards that screen out individuals with disabilities and that are not job-related and consistent with business necessity. The ADA requires employers to provide reasonable accommodations to qualified individuals with disabilities, where such an accommodation does not pose an undue hardship.
Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Jackson Man Sentenced for Stolen Identity Tax Refund FraudRead the Press Release
Jackson, Miss – Tony Jones, 31, of Jackson, was sentenced to 105 months in prison followed by three years of supervised release for stolen identity tax refund fraud, U.S. Attorney Gregory K. Davis announced today. He was also ordered to pay restitution to the government in the amount of $222,137.13.
Jones previously pled guilty to conspiracy to defraud the United States. The conspiracy involved stealing the names and social security numbers of individuals and filing fraudulent federal tax returns for the purpose of obtaining fraudulent refunds. The refunds were electronically deposited into various bank accounts in Mississippi belonging to Jones and his co-conspirators.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Heroin Courier and Dealer Plead Guilty to Maryland Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Rahdel Sharbaan, age 31, of Bronx, New York, pleaded guilty on September 24, 2014, to conspiracy to distribute and possess with intent to distribute heroin. Co-defendant Gary Barham, age 52, of Easton, Maryland, pleaded guilty on September 15, 2014, to the same charge.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; and Hagerstown Police Chief Mark Holtzman.
According to their plea agreements, since early 2014, Rahdel Sharbaan and Gary Barham conspired with others to distribute and possess with the intent to distribute heroin. During the course of the conspiracy, Sharbaan was working with co-conspirators to obtain bulk quantities of heroin from sources in New York and transport that heroin to Maryland for further distribution. Specifically, Sharbaan would meet with sources in New York and obtain the heroin, then he would travel (generally via bus) to Baltimore, Maryland, where he would provide the heroin to a co-conspirator. Barham obtained bulk quantities of heroin from that same co-conspirator, which he then re-distributed in and around the Eastern Shore of Maryland. Sharbaan would take the proceeds of prior heroin transactions from the co-conspirator in order to pay the source in New York.During the investigation, law enforcement obtained a wiretap on phone lines used by a member of the conspiracy. Through those wiretaps, they intercepted numerous calls between Sharbaan and the co-conspirator discussing travel to and from Baltimore and the heroin business. Investigators also saw Sharbaan and the co-conspirator meeting at the Baltimore Travel Plaza to deliver new supplies of heroin.
Barham was also overheard by law enforcement on numerous calls discussing heroin sales with the co-conspirator. For example, on April 2, 2014, law enforcement overheard Barham and the co-conspirator discuss meeting at a restaurant in Bowie, Maryland, so that Barham could obtain a supply of heroin. Law enforcement then saw Barham and the co-conspirator meet at the restaurant to conduct the drug transaction.
Over the course of the conspiracy, it was reasonably foreseeable to Sharbaan and Barham that the conspiracy distributed at least 100 grams of heroin.
Sharbaan faces a maximum sentence of 40 years in prison for the conspiracy. Barham and the Government have agreed that if the Court accepts his plea agreement, Barham will be sentenced to 132 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for Barham on November 17, 2014 at 3:00 p.m., and for Sharbaan on January 8, 2015, at 3:00 p.m.Co-defendant Jeffrey Michael Anderson, age 35, of Upper Marlboro, Maryland, is scheduled to go to trial on October 27, 2014. Charges are pending against co-defendants Reginald Jones, age 26, of Bronx, New York; Shawn Christopher Malley, age 25, of Crofton, Maryland; Amanda Jo Palmer, age 32, of Hagerstown, Maryland; and William Ulysses Robinson, age 38, of Grasonville, Maryland.
United States Attorney Rod J. Rosenstein praised HSI-Baltimore, DEA, Frederick County Sheriff’s Office, Maryland State Police, Washington County Sheriff’s Office and Hagerstown Police Department for their work in the investigation and recognized the Maryland Natural Resources Police, St. Michael’s Police Department, Easton Police Department, Ocean City Police Department and Talbot County Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting the case.Harrisburg Man Charged with Social Security FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brian J. Hymon, age 35, of Harrisburg, Pennsylvania was indicted yesterday and charged with social security fraud.
According to U.S. Attorney Peter Smith, Hymon, as Representative Payee, repeatedly lied on Social Security Supplemental Security Income applications by failing to disclose household income and, which if considered would have made the recipient ineligible for such benefits. The benefits were paid for over nine years, between December 2004 and December 2014, totaling $58,299.35. If convicted, Hymon faces a term of imprisonment of up to five years and a fine of $250,000.
This case is being investigated by the Social Security Administration Office of the Inspector General and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Gulfport Doctor Found Guilty of Felony Tax EvasionRead the Press Release
Gulfport, Miss. – On Wednesday, September 24, 2014, following a week-long trial, Timothy Dale Jackson, 50, an orthopedic physician from Pass Christian, Mississippi, was found guilty on four counts of felony tax evasion and one count of obstruction of the due administration of the internal revenue laws, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Gabriel L. Grchan with IRS Criminal Investigation.
The evidence at trial showed that Dr. Jackson claimed he had taken a vow of poverty in 2003 with the “Church of Compassionate Service,” an entity located in Utah, claiming that he was therefore exempt from paying any income tax. The evidence proved that he made substantial income practicing medicine but had not filed a tax return or paid any income tax since 2003. It also showed that he used nominee accounts and other devices to conceal his income from the IRS through the “church,” but that in fact 90% of the income was returned to him.
Jackson will be sentenced by U.S. District Judge Sul Ozerden on December 18, 2014. The maximum penalty for tax evasion is five years in prison and a $250,000 fine per count. The maximum penalty for obstructing and impeding the due administration of the internal revenue laws is three years in prison and a $250,000 fine.
“Most individuals file truthful tax returns and pay their fair share of taxes,” said U.S. Attorney Gregory K. Davis. “The verdict in this case demonstrates that, regardless of one’s occupation or status in life, if you evade paying taxes, you face real consequences including criminal prosecution and a possible prison sentence.”
IRS-CI Special Agent in Charge Gabriel L. Grchan stated: “Dr. Jackson's actions and intent to evade his income taxes was made clear through the government's presentation of the evidence, and the jury saw that. Anyone who thinks they can continually evade the assessment or payment of their income taxes, and get away with it, should be aware of this case.”
This case was investigated by Special Agents of the IRS Criminal Investigation, and the prosecution was handled by Assistant U.S. Attorneys Ruth Morgan and Jay Golden.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Goodwin Encourages West Virginians to Participate in Upcoming Prescription Drug Take-back EventRead the Press Release
National Rx Take Back Day Scheduled for September 27, 10a.m. to 2p.m.
Charleston, W.Va. – U. S. Attorney Booth Goodwin and U.S. Drug Enforcement Administration (DEA) Resident Agent in Charge Suzan Williamson today encouraged West Virginians to continue their support for the National Prescription Drug Take-Back Initiative which has removed over 14 tons of prescription drugs from homes throughout West Virginia and more than 2,100 tons of pills nationwide as a result of eight such events to date. The ninth National Prescription Drug Take-Back event is scheduled for this Saturday, September 27th from 10:00a.m. to 2:00p.m. at various locations throughout the state.
Medicines that languish in home medicine cabinets are highly susceptible to diversion, misuse, and abuse. “Great strides have been made in reducing the supply of illegal prescription drugs on streets throughout West Virginia. One of the big reasons why supplies have dropped is because West Virginians have come together for each of the previous eight take-back events to properly dispose of their unneeded medications, ultimately keeping them out of the wrong hands.”
Resident Agent in Charge Williamson commended all of the federal, state and local partners in West Virginia for their assistance. Noting that there are over 120 collection sites participating in Saturday’s event, Williamson stated, “It is the assistance of all of our law enforcement partners that continues to make Prescription Drug Take-Back events so successful in West Virginia.”
The Prescription Drug Take-Back initiative is coordinated by the United States Drug Enforcement Administration. For a full list of take back locations offered on Saturday, September 27th,, go to www.dea.gov. Drop-offs are accepted with no questions asked.
Glen Burnie Man Sentenced to 46 Months in Prison for Illegal Possession of Guns and Improvised Explosive DevicesRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles sentenced Todd Wheeler, age 28, of Glen Burnie, Maryland, today to 46 months in prison, followed by three years of supervised release, for being a prohibited person, specifically an unlawful user and a person addicted to drugs, in possession of firearms, including improvised explosive devices.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; Fire Chief Michael E. Cox, Jr. of the Anne Arundel County Fire Department; and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to Wheeler’s plea agreement, on January 1, 2014, Wheeler was treated at the hospital for injuries the he told hospital officials he sustained from an explosion when he was attempting to make fireworks. Wheeler attempted to flee the Emergency Room but was apprehended by police who were called to the scene. Police were directed to the home of Wheeler’s grandmother in Millersville, Maryland. She confirmed that Wheeler often stayed there and gave police permission to search the home and an outbuilding located on her property. Officers recovered chemicals used to manufacture high explosives, as well as other explosive materials. Investigators learned that Wheeler received packages at that address and stored the materials in the outbuilding.
The next day, ATF agents interviewed Wheeler, who remained in custody at the hospital. Wheeler advised agents that he was injured when he mixed chemicals and they exploded. He also told the agents that he had previously made explosive devices and detonated them in his yard. A search warrant was executed at Wheeler’s residence in Glen Burnie by Anne Arundel County Police. Over the next two days law enforcement recovered, among other things: several improvised explosive devices, as well as the chemicals and explosive materials used to make them; drugs and drug paraphernalia; a Walther pistol, flare gun and signal flare launcher, along with a conversion kit to allow the launcher to shoot 12 gauge shot gun shells; and 12 gauge shot gun shells.
Further investigation revealed that Wheeler had history of drug addiction dating back to at least 2006. At the time of this incident Wheeler was on probation for driving under the influence of a controlled substance and in a drug test conducted by his state probation officer shortly before the incident Wheeler tested positive for seven different controlled substances.
United States Attorney Rod J. Rosenstein commended the ATF, FBI, Anne Arundel County Police Department, Anne Arundel County Fire Department, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Harvey E. Eisenberg, who prosecuted the case.
Four Arrested on Federal Drug ChargesRead the Press Release
ROANOKE, VIRGINIA – On Wednesday, September 24, 2014, the Roanoke High Intensity Drug Trafficking Area (HIDTA) group, which consists of officers from the City of Roanoke, Roanoke County, City of Salem, Town of Vinton, Virginia State Police and the Drug Enforcement Administration Roanoke Resident Office, served a series of search and arrest warrants in relation to a long-term heroin trafficking investigation. These warrants were executed throughout the area and resulted in multiple arrests.
As a result of yesterday’s HIDTA operation, four people have been arrested and charged via federal criminal complaints. Those charged include:
Vaughn Dixon Baylor, Jr., 46, of Roanoke, has been charged with one count of distributing heroin.
Stephon Clifford Bryant, 35, of Roanoke, has been charged with two counts of distributing heroin.
Anthony Curtis Barnes, 42, of Salem, has been charged with one count of distributing cocaine and one count of possessing with the intent to distribute heroin.
Jamaal Eugene Barber, 33, of Roanoke, has been charged with one count of distributing heroin.
The investigation is part of the Roanoke HIDTA Group’s continued focus on combating the rising presence of heroin in and around the Roanoke Valley. The investigation of the case was conducted by the members of the Roanoke High Intensity Drug Trafficking Area (HIDTA) group, which consists of officers from the City of Roanoke, Roanoke County, City of Salem, Town of Vinton, Virginia State Police and the Drug Enforcement Administration Roanoke Resident Office. Assistant United States Attorney Ashley B. Neese will prosecute the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Former Top GSA Official Indicted for FraudRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Jeffrey Neely, a former high-ranking official with the U.S. General Services Administration (GSA), today on charges that he submitted fraudulent reimbursement claims and made false statements, announced United States Attorney Melinda Haag and GSA Office of Inspector General, Special Agent in Charge David House.
According to the indictment, Neely, 59, of Gardnerville, Nev., is alleged to have fraudulently sought reimbursement for personal travel and expenses – incurred in Las Vegas, Nev.; Long Beach, Calif.; Guam; and Saipan – by submitting false and fraudulent claims to the United States. The indictment further alleges that, when GSA employees questioned him about these expenses, Neely falsely represented that the costs were incurred for official government business. At the time of this conduct, Neely was the Regional Commissioner and Acting Regional Administrator for GSA’s Public Buildings Service, Pacific Rim Region, which encompasses California, Arizona, Nevada, Hawaii, and outlying territories.
Neely came under scrutiny as the top official overseeing an annual GSA conference in 2010. Allegations of waste, fraud, and abuse relating to this conference triggered a congressional inquiry and an investigation by GSA’s Office of Inspector General regarding conference spending as well as Neely’s own travel and expenditures.
The indictment includes three false claims counts, under 18 U.S.C. § 287, and two counts of making false statements and using false documents, under 18 U.S.C. § 1001. Neely is scheduled to make his initial appearance in federal court in San Francisco on October 20, 2014, before the Honorable Elizabeth D. Laporte, United States Magistrate Court Judge.
If convicted, the defendants face a maximum sentence of five years imprisonment, and a fine of $250,000 for each violation. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Hartley M. K. West is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rosario Calderon. The prosecution is the result of an investigation by the GSA’s OIG.
(Neely indictment )
Former McLennan County Justice of the Peace Pleads Guilty to Federal Theft ChargeRead the Press Release
In Waco today, former McLennan County Justice of the Peace Erma Jean Laster Boone pleaded guilty to theft of Government property in connection with a scheme to steal Social Security Income benefits announced United States Attorney Robert Pitman.
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.
Boone remains on bond pending sentencing which is scheduled for 1:00pm on November 19, 2014. She faces up to ten years in federal prison and a maximum $250,000 fine.
This investigation was conducted by the United States Social Security Administration, Office of Inspector General. Assistant United States Attorney Greg Gloff is prosecuting this case on behalf of the Government.
Former Harmar Twp. Police Captain Sentenced to Probation After Pleading Guilty to Conspiracy ChargeRead the Press Release
PITTSBURGH - A resident of Cheswick, Pa., pleaded guilty in federal court to a charge of conspiracy to commit an offense against the United States, the United States Attorney’s Office announced today.
Richard Allan Toney, 58, pleaded guilty to one count before United States Senior District Judge Donetta Ambrose. At the conclusion of the proceeding Judge Ambrose sentenced Mr. Toney to three years of probation.
In connection with the guilty plea, the court was advised that from in and around April 2009, and continuing thereafter to in and around September 2012, Richard Allan Toney conspired with others to hinder the prosecution or punishment of others relating to conduct surrounding a 2009 primary election for public office. Also, the court was advised that during the charged conspiracy, on or about Sept. 19, 2012, and Sept. 21, 2012, in the Western District of Pennsylvania, Richard Allan Toney attempted to influence and prevent the truthful testimony of a witness before a federal grand jury. According to the government, the Federal Bureau of Investigation and a federal grand jury had been investigating the 2009 election campaign for the position of Supervisor of Harmar Township, Pennsylvania. During the FBI’s investigation, individuals were interviewed and subpoenaed to testify before the grand jury in September of 2012. Toney, who at the time was employed as a Police Captain with the Harmar Township Police Department, twice attempted to prevent the truthful testimony of a grand jury witness.
The law provided for a maximum total sentence of not more than five years in prison, a fine of $250,000.00 or both.
Assistant United States Attorney Jonathan B. Ortiz prosecuted this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation leading to the information in this case.
Former City of Miami Firefighter Sentenced to 327 Months in Prison on Child Pornography ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Alexander Rousseau, 31, of Miami, was sentenced by U.S. District Judge K. Michael Moore to 327 months in prison. Rousseau was convicted by a jury of five counts of receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B).
Beginning at least as early as 2010, Rousseau, a City of Miami Firefighter, downloaded, viewed, and shared videos of child pornography over peer-to-peer file sharing networks. Rousseau would download the videos on his personal computer while he was on duty at various City of Miami Fire Stations. When he was arrested in April of 2014, Rousseau had approximately 120 child pornography videos on his computer, many of which were more than five minutes in length.
After his release from incarceration, Rousseau will remain on supervised release for the rest of his life. He will also be required to attend counseling and will be included on sexual offender registries in Florida and nationwide.
Mr. Ferrer commended the investigative efforts of the FBI, the City of Miami Police Department and the City of Miami Fire Department. The case was prosecuted by Assistant U.S. Attorneys Ben Widlanski and Vanessa Johannes.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Burlington Area Man Sentenced to 60 Months in Prison for Conspiracy to Distribute CocaineRead the Press Release
DAVENPORT, IA – On September 25, 2014, Christopher Ryan Walz, age 34, was sentenced by United States District Judge Stephanie M. Rose to 60 months imprisonment for conspiracy to distribute 5 kilograms or more of cocaine, announced United States Attorney Nicholas A. Klinefeldt. Walz was also ordered to serve five years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
From during or about 2009 and continuing until on or about April 24, 2013, Walz conspired with others to distribute at least 5 kilograms of cocaine. During the course of the conspiracy, Walz purchased and redistributed cocaine to various customers in the Burlington, Iowa, area. As part of the investigation, law enforcement officers conducted a search of Walz’ Burlington residence and seized cocaine, marijuana, digital scales, packaging material, and drug paraphernalia.
This case was investigated by the Iowa Department of Narcotics Enforcement, the United States Drug Enforcement Administration, the Burlington, Iowa, Police Department, and the Southeast Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Five Gautier, Mississippi Residents Plead Guilty in Stolen Firearms CaseRead the Press Release
Gulfport, Miss – Theodore Dempsey Towne, 20, Kenneth O’Neal Knox, 46, Catina Towne Henderson, 36, Princeton Scott Knox, 34, and Aubrey Knox, 35, all of Gautier, Mississippi, pled guilty before Chief District Judge Louis Guirola, Jr. to charges related to the theft of 46 firearms, including machine guns, from a federal firearms licensee, U. S. Attorney Gregory K. Davis announced today.
Theodore Dempsey Towne pled guilty to theft of firearms from a federal firearms licensee, which carries a maximum penalty of 10 years in prison, a fine of $250,000 and three years of supervised release. He will be sentenced on December 18, 2014.
Catina Towne Henderson, Kenneth O’Neal Knox and Princeton Scott Knox pled guilty to misprision of a felony by not reporting the theft and committing acts to conceal the discovery of the crime. Misprision of a felony carries a maximum penalty of three years in prison, a $250,000 fine and one year of supervised release. They will be sentenced on December 18, 2014.
Aubrey Knox pled guilty to conspiracy to commit crimes against the United States, which carries a maximum penalty of five years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on December 16, 2014.
This case was investigated by the Moss Point Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Annette Williams.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Federal Jury in New Mexico Convicts Arizona Man on Methamphetamine Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – This afternoon a federal jury sitting in Las Cruces, N.M., found Matthew Maley, 46, of Tucson, Ariz., guilty on methamphetamine trafficking and firearms charges after a four-day trial. The guilty verdict was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Lt. Bobby Holden of the Las Cruces/ Doña Ana County Metro Narcotics Agency.
Maley and his four co-defendants Jennifer Sanders, 42, Jose Luis Niño, 40, and Aubrey Savage, 34, all of Las Cruces, and Candice Marie Carpenter, 35, of Tucson, were charged in an 14-count superseding indictment filed on March 19, 2014. Count 1 charged Sanders, Savage and Maley with conspiracy to distribute methamphetamine in Doña Ana County, N.M., from June 2013 through Aug. 2013. Count 11 charged Maley, Nino and Carpenter with conspiracy to distribute methamphetamine in Doña Ana County in Dec. 2013. The indictment also charged the defendants with various substantive methamphetamine distribution offenses, and Maley and Niño with being felons in possession of firearms and ammunition.
Maley’s four co-defendants entered guilty pleas to various counts of the superseding indictment while Maley elected to exercise his right to a jury trial. Maley proceeded to trial on two counts of conspiracy to distribute methamphetamine, two counts of methamphetamine distribution, one count of possession of methamphetamine with intent to distribute, and one count of being a felon in possession of a firearm and ammunition.
Maley’s trial began on Sept. 22, 2014. Before the case was submitted to the jury, the court entered a directed verdict of acquittal on one of the two methamphetamine distribution counts. The trial concluded today when the jury returned a verdict of guilty against Maley on the five counts it considered.
The evidence established that Maley was the head of a drug trafficking organization that distributed significant quantities of methamphetamine in New Mexico and Arizona. According to the testimony at trial, during July and Aug. 2013, undercover officers made several controlled purchases of methamphetamine from Maley, Sanders and Savage, including the purchase of a pound of methamphetamine on Aug. 21, 2013. From Oct. through Dec. 2013, an informant purchased methamphetamine from Niño, who obtained the methamphetamine from Maley, and on Dec. 4, 2013, officers seized approximately 274 grams of methamphetamine when they executed a search warrant at Niño’s residence in Las Cruces.
Maley has been in federal custody since his arrest on Dec. 4, 2013, and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Maley faces a mandatory minimum of 20 years in prison and a maximum of life in prison on the methamphetamine trafficking charges, and a statutory maximum penalty of ten years in prison on the firearms charge. Maley faces the enhanced penalty of a mandatory minimum 20 years in prison on the drug charges because he has a prior drug trafficking felony conviction.
On June 11, 2014, co-defendant Savage pled guilty to a conspiracy count on June 11, 2014, and admitted distributing methamphetamine on seven separate occasions between June 7, 2013 and July 11, 2013. The quantities involved in those transactions ranged from .97 grams to 97.3 grams. Savage faces a mandatory minimum of five years in prison and a maximum of 40 years in prison when she is sentenced.
On July 16, 2014, co-defendant Niño pled guilty to one count of conspiracy, one count of possession of methamphetamine with intent to distribute, and one count of being a felon in possession of ammunition. Niño admitted possessing 274 grams of methamphetamine with intent to distribute in his home on Dec. 4, 2013. He also admitted unlawfully possessing 30 rounds of ammunition on that day. Niño was prohibited from possessing firearms or ammunition because he previously had been convicted of a felony drug trafficking offense. Niño faces a mandatory minimum of ten years in prison and a maximum of life in prison.
On July 18, 2014, co-defendant Sanders pled guilty to one count of conspiracy and seven counts of distribution of methamphetamine, and admitted selling methamphetamine to a person who turned out to be an undercover officer on seven separate occasions between June 12, 2013 and Aug. 21, 2013. Sanders acknowledged that the quantities of methamphetamine involved in the sales ranged from 5.4 grams in the first transaction to more than 250 grams in the last two transactions. At sentencing, Sanders faces a mandatory minimum of ten years in prison and a maximum of life in prison.
Co-defendant Carpenter entered a guilty plea on Sept. 18, 2014, to conspiracy to distribute methamphetamine and distribution of methamphetamine, and admitted transporting 270 grams of methamphetamine from Arizona to New Mexico at Maley’s direction. At sentencing, Carpenter faces a statutory maximum penalty of 20 years in prison.
The four co-defendants remain in custody pending sentencing hearing, which have yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and Las Cruces/ Doña Ana County Metro Narcotics Agency, and is being prosecuted by Assistant U.S. Attorneys Maria Y. Armijo and E. Garreth Winstead, III, of the U.S. Attorney’s Las Cruces Branch Office.
Federal Jury Convicts Two Kansas Men for Trafficking in Synthetic MarijuanaRead the Press Release
TOPEKA, KAN. A father and son from Kansas who helped launch a global sales and supply network for a synthetic version of marijuana were convicted today on charges of violating the federal Food, Drug and Cosmetic Act, U.S. Attorney Barry Grissom said.
A federal jury convicted the men on charges of conspiring to manufacture and sell a marijuana substitute called K2 – named after the second-highest mountain in the world. The business, which began in a shop in Lawrence, Kan., grew to encompass a chain of suppliers, retailers, wholesalers and business associates with locations in Kansas, California, Massachusetts, New Jersey, Oregon, Nevada and Indiana, as well as in other nations including Argentina, Latvia, Germany, Lithuania, the United Kingdom, Ukraine, the Netherlands, Canada, Sweden, Singapore, Thailand and Uruguay. The defendants made at least $3.3 million from the sale of the drugs.
A federal jury convicted Clark Sloan, 55, Tonganoxie, Kan., and his son, Jonathan Sloan, 33, Lawrence, Kan., on 20 counts including one count of conspiracy, two counts of misbranding, 15 counts of mail fraud, one count of smuggling and one count of money laundering.
The defendants were acquitted on five other counts.
During trial, prosecutors presented evidence that Jonathan Sloan was co-owner of two businesses, Persephone's Journey, a retail store in Lawrence, Kan., and Bouncing Bear Botanicals, ostensibly a wholesaler of herbs and botanical products, with co-defendant Bradley Miller of Wichita, Kan. Bouncing Bear Botanicals was located in the basement of Persephone's Journey and then moved to a warehouse in Oskaloosa, Kan. Clark Sloan, who was Miller’s brother, developed and monitored the Web site for Bouncing Bear Botanicals and worked in marketing and Internet technologies.
Miller developed recipes for K2 and manufactured it. During trial, prosecutors presented evidence that:
- The defendants manufactured and distributed K2 as an Aall natural product@ but it contained synthetic chemicals called JWH Compounds that mimic the effects of the THC in marijuana. Their products also contained solvents, either the alcohol Everclear or acetone, as well as other additives.
- They manufactured and sold at least four types of K2 products: Standard, Citron, Blonde and Summit, with Standard being the least potent and Summit being the most potent, depending on the amount of JWH Compounds that were mixed with herbs.
- The defendants manufactured the K2 without quality controls, resulting in inconsistent potencies. They intended K2 products to be smoked like marijuana by recreational drug users, but they falsely referred to K2 products as aromatic incense and falsely labeled them as Anot for consumption.@
“The public is put at risk by those who distribute drugs that are misbranded because of deceptive labeling or inadequate directions for use,” said Catherine Hermsen, Special Agent in Charge of the FDA’s Office of Criminal Investigations. “We will continue to work to prevent such drugs from reaching the U.S. market and to bring to justice those who attempt to circumvent FDA’s regulations, which protect the public health.”
Sentencing is set for Jan. 26, 2015. The crimes carry the following penalties:
Conspiracy: A maximum penalty of five years in federal prison and a fine up to $250,000.
Distributing misbranded K2: A maximum penalty of three years and a fine up to $250,000.
Mail fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Smuggling: A maximum penalty of 10 years and a fine up to $250,000.
Conspiracy to commit money laundering: A maximum penalty of 20 years and a fine up to $500,000.Co-defendant Bradley Miller is awaiting trial.
Grissom commended the Food and Drug Administration, Assistant U.S. Attorney Tanya Treadway and Assistant U.S. Attorney Tony Mattivi for their Work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.