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Wednesday 24 September 2014
Amherst Restaurant Owner Sentenced for Filing a False Tax ReturnRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Ravi Sabharwal, 58, of Williamsville, N.Y., who was convicted of filing a false tax return, was sentenced to time serve and one year probation to include six months home confinement by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Sabharwal, owner of Tandoori’s restaurant in Amherst, N.Y., underreported the gross receipts of the business on corporate tax returns to avoid paying federal taxes.
In October 2012, the defendant attempted to sell Tandoori’s restaurant and two related businesses to any interested buyers by listing the businesses for sale with a broker. Between October 2012 and March 2013, Internal Revenue Service, Criminal Investigation Division (IRS-CID) undercover agents, posing as interested buyers, met with the defendant to negotiate the terms of the sale of the business. During conversations with the agents, Sabharwal admitted that he significantly underreported the gross receipts and the taxable income for Tandoori’s restaurant on corporate tax returns. The defendant was able to underreport the gross receipts and taxable income by not running the receipts of a related business through the register and by not depositing all the business receipts to the business bank accounts.
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.
On October 7, 2012, Sabharwal assisted in the preparation of the corporate tax return for Tandoori’s restaurant for calendar year 2011 by providing his accountant, who prepared the corporate tax returns, with information concerning the gross receipts of the business. The return reported that the gross receipts for the calendar year 2011 were the sum of $738,358 and that the total amount of tax due was $4,686. The gross receipts of Tandori’s restaurant for the calendar year 2011 were actually $1,052,372.89, with taxes due to the IRS totaling $48,952.
In addition, Sabharwal similarly assisted with the preparation of a false and fraudulent corporate tax return for Tandoori’s restaurant for calendar year 2010. The total tax due was $95,063.- Alien Harboring Conspiracy Sends Undocumented Alien and Others to Federal Prison
Alexandria Woman Convicted of EmbezzlementRead the Press Release
ALEXANDRIA, Va. – Julissa Rauhut, 45, formerly of Springfield, Virginia, was convicted today on five counts of wire fraud after embezzling over $186,000 from her employer from 2009 to 2011.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Earl L. Cook, Alexandria Chief of Police, made the announcement after the verdict was accepted by U.S. District Judge James C. Cacheris.
Rauhut was indicted on May 22, 2014 by a federal grand jury on the wire fraud charges. According to court records and evidence at trial, between December 2008 and August 2011, Rauhut worked as a personal assistant at a law firm in Alexandria. While there she stole 120 checks and 64 money orders that were intended as payments to her employer and deposited them into her personal checking account at Bank of America. In total, Rauhut embezzled $186,178.93.
Rauhut faces a maximum penalty of 20 years in prison for each count when she is sentenced on Dec. 18, 2014. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the United States Secret Service Metro Area Fraud Task Force (MAFTF), which includes agents from the U.S. Secret Service and the Alexandria Police Department. Assistant U.S. Attorney Jack Hanly and Special Assistant U.S. Attorney Della Sentilles prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-186.
Airline Employees Charged with Cash Smuggling and Evading Airport Security Checkpoints in an Undercover Operation at Logan International AirportRead the Press Release
BOSTON – Five commercial airline employees were charged today after an undercover operation revealed that they used their airport security clearances to secretly smuggle hundreds of thousands of dollars in cash past security checkpoints.
According to the charging documents, Rupert Crossley, 26, of Lynn, and Anthony Trotman, 24, of Boston, have agreed to plead guilty to separate informations. Alvin Leacock, 28, of Hollywood, Fla.; Eric Vick, 24, of Mattapan; and Dino Dunkley, 31, of Boston, were indicted by a federal grand jury. Crossley, Leacock, Vick, and Trotman, all JetBlue Airways ground operations crew members, and Dunkley, a Delta Air Lines customer service ramp agent, were each charged with money laundering and conspiracy to defraud the United States, namely, the Transportation Security Administration (TSA), by entering Boston’s Logan International Airport with the intent to evade security procedures, and with the intent to commit a felony in a secure airport area.
According to the charging documents, each defendant used his individual airport security clearance to circumvent TSA security checkpoints and smuggle large amounts of cash from non-secure airport areas, such as curbside passenger drop-off/pick-up or public restrooms near baggage claim, to secure areas of the airport, such as passenger departure gates and, in some instances, aboard commercial airline flights at Logan International Airport. In return, each defendant received a cash payment from a cooperating witness involved in the investigation. It is alleged that nine money laundering transactions were completed, which involved approximately $417,000 in cash the defendants believed to be drug proceeds.The most significant statutes charged provides a statutory sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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 Transportation Security Administration, the Federal Air Marshal Service, and the Massachusetts State Police. The U.S. Attorney’s Office would also like to acknowledge the assistance and cooperation of Massachusetts Port Authority, JetBlue Airways Corporate Security and Delta Airlines. The case is being prosecuted by Assistant U.S. Attorneys Carlos A. Lopez of Ortiz’s Major Crimes Unit and Dustin Chao of Ortiz’s Public Corruption Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Abita Springs Man, Frank Frabbiele, Pleads Guilty to Running Illegal Wagering Operation and Money LaunderingRead the Press Release
U.S. Attorney Kenneth Polite announced that FRANK FRABBIELE, 79, of Abita Springs, Louisiana pleaded guilty today to a two-count Bill of Information, charging him with the transmission of wagering information and money laundering.
According to court documents, beginning not later than January 2008 and continuing until April 9, 2014, FRABBIELE operated a gambling operation in which he took bets and wagers on football, basketball, and baseball games. In the course of conducting his gambling operation, FRABBIELE used a “pay-per-head” betting website based in Costa Rica to track, record, and register bets and clients, to which FRABBIELE paid a per-client fee. FRABBIELE’S relationship with the website caused information to be transmitted by wire from Abita Springs to Costa Rica for the purposes of assisting in placing bets on football, baseball, and basketball. On or about November 15, 2012, FRABBIELE also committed money laundering by depositing $20,000 cash, representing the proceeds of the gambling operation, into a bank account.
FRABBIELE faces a maximum term of imprisonment of 12 years in prison, 3 years of supervised release after any term of imprisonment, and a $250,000 fine. Sentencing is scheduled for January 14, 2015, before U.S. District Judge Helen G. Berrigan.
This case is being investigated by agents from the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
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A Dozen Members of Penaloza Organization Indicted for Conspiracy to Distribute Methamphetamine, Money Laundering, and Related ChargesRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of 12 members of the Penaloza drug trafficking organization for conspiring to distribute methamphetamine and marijuana in Minnesota. The indictment is the result of a three-year investigation, which was a collaborative effort between Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), Minneapolis Police Department, and St. Paul Police Department, operating under the auspices of Organized Crime Drug Enforcement Task Force (OCDETF) designation. Agents today executed search and arrest warrants in Minnesota, California, and Illinois. Four defendants made initial appearances in US District Court in St. Paul before Magistrate Judge Jeffrey J. Keyes. Two defendants appeared in US District Court in Fresno, Calif., and one appeared in Chicago, Illinois.
“Drug traffickers will not find a safe haven in Minnesota,” said US Attorney Luger. “Criminals in Minnesota continue to be stymied by the coordinated effort of federal and local law enforcement. It is a credit to their hard work and dedication that another international drug trafficking organization is under indictment today.”
J. Michael Netherland, Special Agent in Charge of HSI St. Paul said: "As a result of this investigation, we've successfully dismantled a dangerous drug trafficking organization responsible for flooding the Twin Cities with methamphetamine. Leveraging our worldwide assets, HSI will continue to partner with other federal, state and local agencies, not only to stem the flow of illegal narcotics into the United States, but also to intercept and seize the illicit proceeds being funneled out of the United States."
Dan Moren, Assistant Special Agent in Charge of the DEA, Minneapolis-St. Paul District Office said: “Federal, state, and local law enforcement partners have dealt a swift and expansive blow to Organized Crime today. Multi-jurisdictional criminal organizations, such as the Penaloza Drug Trafficking Organization, pray that DEA, HSI, and the Minneapolis and St Paul Police Departments aren’t communicating with each other and connecting the dots…we are.”
Saint Paul Police Chief Tom Smith said: “It is thanks to partnerships like those being utilized in this operation that our communities are safer. Those we serve know that we are all stronger and safer because our law enforcement agencies are working together. It’s time that the people involved in these criminal activities get that message, too. Their crimes will not be tolerated.”
According to the indictment and documents filed in court, the Penaloza drug trafficking organization has been distributing methamphetamine, cocaine, and marijuana in Minnesota and other states since at least August 2011. EDUARDO PENALOZA-ROMERO leads the Minnesota branch of the drug trafficking organization, based out of an automotive repair business called Auto Laser in Spring Lake Park, Minnesota. Auto Laser is an alleged front- business for the Penaloza organization, and is used to store and transfer methamphetamine, and as a meeting place to collect drug money.
According to documents filed in court, ELEUTERIO IZAZAGA-PASCACIO, one of the Penaloza ringleaders, has supplied PENALOZA-ROMERO with methamphetamine, and on at least one occasion discussed in coded language the sale of two pounds of narcotics for $10,000 each. PENALOZA-ROMERO was supposed to sell the methamphetamine for $12,500 per pound and send the profit to IZAZAGA’s brother. PENALOZA-ROMERO and other members of the conspiracy repeatedly discussed trafficking of methamphetamine through the Auto Laser shop in Spring Lake Park, Minnesota. On August 5, 2014, law enforcement officers stopped a vehicle traveling to the Auto Laser shop from California. Ten pounds of methamphetamine was recovered from the vehicle.
According to the indictment, other members of the Penaloza organization participated in the conspiracy by transporting or selling methamphetamine, or laundering the proceeds of the drug trafficking organization. Between August 2011 and September 23, 2014, law enforcement seized from the Penaloza drug trafficking organization approximately $600,000 in cash, 47 pounds of methamphetamine, 10 pounds of marijuana, and a handgun. Law enforcement has conducted nine purchases of controlled substances from associates of the Penaloza organization.
This case is the result of an investigation conducted jointly by HSI, DEA, Minneapolis Police Department, and St. Paul Police Department, under the auspices of the OCDETF.
This case is being prosecuted by Assistant U.S. Attorney Allen Slaughter.
Defendant Information:
ELEUTERIO IZAZAGA-PASCACIO, 48
Fresno, Calif.
Charges:
• Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Possession with Intent to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
• Distribution of Marijuana, 1 count
• Money Laundering, 3 counts
IMER PENALOZA-PINEDA, 36
Zihuatanejo, Mexico
Charges:
• Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 4 counts
• Money Laundering, 2 counts
• Distribution of Marijuana, 1 count
EDUARDO PENALOZA-ROMERO, 24
Spring Lake Park, Minn.
Charges:
• Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 3 counts
• Distribution of Marijuana, 1 count
GERRARDO SANCHEZ, 28
Chicago, Ill.
Charges:
• Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Money Laundering, 2 counts
FELIX VELAZQUEZ-GARAY, 41
St. Paul, Minn.
Charges:
• Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 3 counts
ARNALDO ENRIQUE ALMENDAREZ, 40
St. Paul, Minn.
Charges:
• Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
AUNDRAY LINDSEY, 36
St. Paul, Minn.
Charges:
• Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
CESAR DANIEL MOLINA-CARRANZA, 31
St. Paul, Minn.
Charges:
• Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
MAGEDALENO PEREZ-ARENAS, 36
St. Paul, Minn.
Charges:
• Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
RAMON ESPINOSA-CARDENAS
Fresno, Calif.
Charges:
• Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
ALFREDO BASURTO-HERRERA, 26
Fresno, Calif.
Charges:
• Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count
JESUS SOTELO-VALDOVINOS, 40
Fresno, Calif.
Charges:
• Conspiracy to Distribute Methamphetamine and Marijuana, 1 count
• Distribution of Methamphetamine, 1 count###
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
30 Individuals Indicted for Trafficking DrugsRead the Press Release
SAN JUAN, Puerto Rico – On September 18, 2014, a federal grand jury in the District of Puerto Rico returned an indictment against 30 defendants charged with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Today DEA and ATF agents and officers of the Puerto Rico Police Department (PRPD), executed the arrest warrants.
The object of the conspiracy was to distribute controlled substances at the Las Mesetas Public Housing Project located within the Municipality of Arecibo, Puerto Rico since 2008. This organization would purchase wholesale quantities of heroin, cocaine, and marihuana in order to distribute the same in street quantity amounts at their drug distribution points in Las Mesetas. These drug points would have fixed prices for types of drugs in order to maintain the parity of the sales. The leader and drug point owner would have other members of the organization administrating the daily activities of the drug distribution point.
Some of the cocaine purchased at wholesale quantities would be converted into crack cocaine, “cooked”, for subsequent sale and distribution at the drug points. The organization would use residences located within Las Mesetas and other locations outside the housing project to conceal drugs, drug paraphernalia, firearms and ammunitions. Some of the defendants would routinely possess, carry, brandish, and use firearms to protect themselves and further their drug trafficking organization.
The main leader of the drug trafficking organization, Jorge Sanchez-Sostre aka “Georgie” had control of the drug distribution points located within Las Mesetas through three co-defendants also acting as drug point owners. These drug point owners were Yadira Casanova-Avila, Jonathan Beltran-Perez aka “Puruco”, and Christian Sanchez-Sostre. The leaders of the organization had the final approving authority as to the disciplinary actions to be imposed upon residents of Las Mesetas and members of the conspiracy.
“Today’s arrests demonstrate our commitment to dismantle drug trafficking organizations which, through their illicit business, are affecting the quality of life of the law abiding citizens in our public housing projects.” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “ We will continue our hard work to maintain the peace in our neighborhoods.”
“ATF's FRONTLINE strategy in protecting Americans and our communities from violent crime is our number one priority. Today's Las Mesetas case, is just another example of ATF's efforts of working hand in hand with our DEA and PRPD law enforcement partners,” said Special Agent in Charge Hugo Barrera, Miami Field Division. “We will work together to eradicate violent gun and drug related crime and dismantle Drug Trafficking Organizations such as this one.”“DEA will continue to work hand in hand with the United States Attorney’s Office for the District of Puerto Rico, Bureau of Alcohol Tobacco, Firearms and Explosives, Puerto Rico Police Department, U.S. Marshal Service, Puerto Rico National Guard, Puerto Rico Housing Department, Special Investigations Bureau, Ports of Authority and the Department of Corrections, in effort to disrupt and dismantle all the violent drug trafficking organizations that utilizes firearms to intimidate and operate there drug points out of the Public Housing Projects and other communities for financial gain. These Drug Trafficking Organizations will not be allowed to continue nor expand their operations”. Said Vito Salvatore Guarino, Special Agent In Charge of the DEA Caribbean Division.
Assistant U.S. Attorney Victor Acevedo and Assistant U.S. Attorney Seth Erbe are in charge of the prosecution of the case. If convicted, the defendants face a sentence of not less than twenty (20) years of imprisonment and up to life under 21 U.S.C. §§ 841(a)(1), 846 and 860 and a minimum sentence of not less than five (5) years of imprisonment and up to life under 18 U.S.C. § 924(c).Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.# # #
"Bloody Horace" Sentenced in Federal Court to Fourteen Years for Drugs and GunsRead the Press Release
Contact Person: Jay Richardson (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that Horance Antonio Taylor, a/k/a “Bloody Horace,” (24) of Columbia was sentenced to fourteen years in prison for dealing drugs and using firearms in connection with his drug dealing.
In April of 2012, the Columbia Police Department conducted a traffic stop of Taylor. During the search of the vehicle, Taylor was found to be in possession of crack cocaine with the intent to distribute while also in possession of a 9mm pistol in furtherance of his drug trafficking. After Taylor was released on a state bond, the Columbia Police Department executed a search warrant at Taylor’s residence in September of 2013. During the resulting search, Taylor was again found in to have crack cocaine with the intent to distribute while in possession of a .45 caliber pistol. In December of 2013, a federal grand jury indicted Taylor on multiple narcotics and firearm offenses. Taylor pleaded guilty to drug and firearm offenses on June 11, 2014. In light of Taylor’s prior convictions and his criminal activities, the Court sentenced Taylor to fourteen years in federal court.
The case was investigated as part of the ongoing cooperation between the Columbia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to remove violent drug dealers from the streets of Columbia, SC. The case was prosecuted by Assistant United States Attorney Jay N. Richardson.
Tuesday 23 September 2014
Westbrook Man Sentenced to Eight Years for Possessing Child Pornography and PerjuryRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Joel
Dudley, 30, of Westbrook, was sentenced yesterday in U.S. District Court by Judge George Z.
Singal to 8 years in prison and 10 years of supervised release for possessing child pornography
and testifying falsely under oath during a court hearing. Dudley was convicted following
separate jury trials in February and April.According to evidence introduced at the two trials, in August 2012, federal agents and
local police executed a search warrant at Dudley’s apartment in Westbrook and seized two
DVDs later found to contain numerous child pornography videos.
In April 2013, Dudley testified at a hearing on a motion to suppress evidence he filed in
the child pornography case. At the hearing, held in U.S. District Court in Portland, Dudley
falsely testified that he had repeatedly invoked his right to counsel during an interview with law
enforcement agents, but that the agents had continued to question him in violation of his
constitutional rights.The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations and the Westbrook Police Department.Washington, DC Man Sentenced to over Nine Years in Prison for Two Armed Robberies in Prince George’s CountyRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Gregory Evans, age 28, of Washington, DC, today to 114 months in prison, followed by five years of supervised release, for conspiracy to interfere with commerce by robbery and brandishing a firearm during a crime of violence.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; and Maryland Attorney General Douglas F. Gansler.
According to Evans’ plea agreement, on January 22, 2014, Evans and others robbed a store in the 4100 block of Southern Avenue in Capitol Heights, Maryland. Evans and a co-conspirator forced a store employee at gunpoint to open the cash register. While Evans was taking the money from the cash register, his co-conspirator placed a gun to the head of a second victim and stole $785 from the victim’s pockets.
A little over an hour later, Evans and two co-conspirators entered a liquor store located in the 3300 block of Walters Lane in District Heights, Maryland. Evans brandished a black handgun, jumped over the counter, pointed the gun at store employees and ordered the employees to lie on the ground. A second co-conspirator brandished a silver handgun and stood by the front door. A third co-conspirator jumped the counter and removed money from a cash register. Evans then pointed his gun at one of the employees and ordered the employee to open another cash register. Evans took the money from that register, opened another cash register and removed money from that register as well. Evans and the co-conspirators then left the liquor store, got into a van and fled the area.
A witness saw Evans and the co-conspirators leave the store and followed them. The witness called 911 and relayed a partial Maryland tag number. Law enforcement located the van and pursued the van into Washington DC, where the van came to a stop near 57th Street and Clay Place, NE. Officers saw individuals exit the van and run away. Officers apprehended Evans and co-defendant, Donnell Calloway.
Donnell Calloway, age 28, of Washington, DC, is charged by criminal complaint with conspiracy to interfere with commerce by robbery and brandishing a firearm during a crime of violence. He is currently in federal custody on charges filed in Washington, D.C.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.
Wapato Methamphetamine Dealer Sentenced to 92 Months in Federal PrisonRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jeremiah Joseph Axtell, age 41, of Wapato, Washington, was sentenced today after previously pleading guilty to possession with intent to distribute methamphetamine. Senior United States District Court Judge Lonny R. Suko sentenced Axtell to a 92 month term of imprisonment, to be followed by a four year term of court supervision following release from Federal prison.
According to information disclosed during the court proceedings, law enforcement agents executed a search warrant at Axtell’s residence on March 18, 2014. They located several ounces of methamphetamine and ten firearms. Axtell was indicted by a grand jury on April 8, 2014, and he pled guilty on May 29, 2014 to possession with intent to distribute methamphetamine.
Michael C. Ormsby said, “The DEA, ATF, and BIA here in the Eastern District of Washington are to be commended for their continued aggressive investigative efforts involving drug trafficking, particularly when firearms are present. This case involved a significant amount of methamphetamine that the Defendant intended to distribute and the Defendant was in possession of numerous firearms as well. The seriousness of the Defendant’s criminal conduct is reflected by the 92 month sentence imposed by the judge. The United States Attorney’s Office will continue to support its law enforcement partners by aggressively prosecuting drug trafficking and firearm-related crimes.”
This investigation was conducted by agents with the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Bureau of Indian Affairs. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Utah Resident Convicted of Tax Evasion and FilingRead the Press Release
A Kaysville, Utah, man was convicted Friday of three counts of tax evasion and one count of filing a false tax return, the Justice Department and Internal Revenue Service (IRS) announced.
Jon T. McBride, who was indicted on March 27, 2013, was convicted on Friday, Sept. 19, 2014, following a jury verdict. He faces a statutory maximum sentence of 18 years in prison and a fine of up to $1 million at his Dec. 1, 2014 sentencing before U.S. District Judge Ted Stewart.
The evidence at trial also showed that McBride prepared and filed a false U.S. individual income tax return for the year 2005, on which he failed to include approximately $109,785 in gross income received. According to the indictment and evidence at trial, McBride willfully attempted to evade his federal income taxes for 2006 by filing a false return that failed to report more than $300,000 he received from his company, the sale of his vacation property and early retirement distributions. McBride also willfully attempted to evade his 2007 federal income taxes by failing to file an individual federal income tax return and filing a false return for one of his nominee partnerships. McBride again willfully attempted to evade his 2009 taxes by filing a false return that reported zero income. Additionally, for tax years 2006, 2007 and 2009, McBride used nominees to hide and conceal his ownership in real property and partnerships.
The case was investigated by special agents of the IRS - Criminal Investigation and was prosecuted by Trial Attorney Brent Ward of the Criminal Division and Trial Attorney Andrea Kafka for the Tax Division.
Utah Man Pleads Guilty to Federal Hate Crime for Threatening Interracial FamilyRead the Press Release
The Department of Justice announced that Robert Keller, 70, pleaded guilty in the U.S. District Court for the District of Utah today to a federal civil rights crime related to interfering with the housing rights of three members of an interracial family because of the family member’s races and because the family members were living in a home while associating with an African American family member in Hurricane, Utah.
During the plea proceedings, Keller admitted that on Dec. 30, 2013, he wrote a note to two Caucasian family members of an interracial family threatening to kill them if they did not make their African American family member leave their home. Keller admitted that he used threats of force to willfully intimidate and interfere with the two Caucasian family members because they were occupying a dwelling while associating with their African American family member.
“Members of our community have a constitutional right to live in their home without fear, and the department will not tolerate threats of violence that infringe on that right,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.
"Hate based crimes have no place in America,” said Acting U.S. Attorney Carlie Christensen for the District of Utah. “They not only hurt the individuals who are the object of such hate, but tear at the fabric of our society as a whole. In this case, the defendant’s attempt to rid his neighborhood of an African-American member of an interracial family serves as a horrifying reminder that racial intolerance stills exists in some communities. This conviction sends a clear message that such despicable acts will not be tolerated by this office, but will be prosecuted to the fullest extent of the law.”
Sentencing is scheduled for December 1st and the defendant faces a maximum penalty of one year in prison.
This case is being investigated by the Salt Lake City Division of the Federal Bureau of Investigation in cooperation with the Hurricane City Police Department. It is being prosecuted by Trial Attorney Saeed Mody of the Civil Rights Division and Assistant United States Attorney Carlos Esqueda of the District of Utah.
Utah Man Pleads Guilty to Federal Hate Crime for Threatening Interracial FamilyRead the Press Release
SALT LAKE CITY - Robert Keller, 70, of Hurricane, pleaded guilty to a federal civil rights crime Tuesday morning in federal court in Salt Lake City. Keller was charged with interfering with the housing rights of three members of an interracial family because of the family member’s races and because the family members were living in a home in Hurricane, Utah.
During the plea proceedings, Keller admitted that on Dec. 30, 2013, he wrote a note to two Caucasian family members of an interracial family threatening to kill them if they did not make their African American family member leave their home. Keller admitted that he used threats of force to willfully intimidate and interfere with the two Caucasian family members because they were occupying a dwelling while associating with their African American family member.
“Members of our community have a constitutional right to live in their home without fear, and the Department will not tolerate threats of violence that infringe on that right,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.
“Hate based crimes have no place in America. They not only hurt the individuals who are the object of such hate, but tear at the fabric of our society as a whole. In this case, the defendant’s attempt to rid his neighborhood of an African American member of an interracial family serves as a horrifying reminder that racial intolerance stills exists in some communities. This conviction sends a clear message that such despicable acts will not be tolerated by this office, but will be prosecuted to the fullest extent of the law,” Acting U.S. Attorney for Utah Carlie Christensen said.
Keller faces a maximum penalty of one year in prison for the conviction. Sentencing has been set for Dec. 1, 2014, at 8:30 a.m. before U.S. Magistrate Judge Evelyn Furse.
This case is being investigated by the Salt Lake City Division of the Federal Bureau of Investigation in cooperation with the Hurricane City Police Department. It is being prosecuted by Trial Attorney Saeed Mody of the Civil Rights Division and Assistant United States Attorney Carlos Esqueda of the U.S. Attorney’s Office in Salt Lake City.
U.S. Attorney, Caddo Sheriff Partner to Teach Children about Firearm SafetyRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley and Caddo Parish Sheriff Steve Prator have joined together to offer a new tool to law enforcement to teach firearm safety to children.
At a ceremony today at the Louisiana Sheriff’s Association Office in Baton Rouge, two new firearm safety trailers were unveiled. The trailers will be used as part of the Louisiana Law Enforcement Gun Safety Program to teach firearm safety to children at area schools. Currently, the program only uses one trailer. Since its inception in June of 2013, the program has reached approximately 22,100 children and has distributed 300 gunlocks to adults. The two new trailers were acquired to meet the demand from Louisiana schools.
When the new trailers are put into service, there will be a trailer in each of the three federal judicial districts in Louisiana - Western, Middle and Eastern. The Caddo Parish Sheriff’s Office will house one of the trailers, which will be available for law enforcement agencies to use throughout the Western District of Louisiana. Forty-two of the state’s 64 parishes are in the Western District. The trailer should be available for use in October.
The Louisiana Law Enforcement for Gun Safety Program was created in response to the alarmingly high rate of accidental firearm injuries and deaths among children in Louisiana. The program uses certified firearm instructors to teach parents and children about gun safety through an interactive presentation involving live demonstrations and the distribution of gunlocks. The program demonstrates the dangers of firearms and tests students’ knowledge of gun safety. The instructors show students various handguns and ask them if the weapons are real or toys. The students in many cases are unable to distinguish between real or toy guns because many toy guns look, feel and weigh the same as real ones. At the end of the program, students are shown the destructive capacity of guns by watching a pistol fire a bullet into a watermelon inside of a protective enclosure. Students are instructed that weapons must be handled safely and with adult supervision.
The program aims to identify the hazards of unsecured firearms, teach individuals how to secure firearms, identify distinguishing characteristics between real and toy guns, and illustrate the destructive force of firearms through the use of the demonstration trailer. Presentations are conducted at schools, camps and community events.
“The U.S. Attorney’s Office is proud to support this program,” Finley said. “Children’s safety in the Western District of Louisiana is of the utmost concern for this office. The Gun Safety Program helps educate students on how to react when finding a gun. This program can save a life.”
“I’ve seen many cases in my 41-year law enforcement career that prove children need gun safety education,” said Caddo Sheriff Steve Prator. “The Caddo Sheriff’s Office is excited to play such an important role in this program and to offer it, along with other ongoing programs like Sheriff’s Safety Town, to help keep our children safe.”
The program is available for use by all law enforcement agencies in Louisiana through the endorsements of the U.S. Attorney’s Offices for the Western, Middle and Eastern Districts, Caddo Parish Sheriff’s Office, Baton Rouge City Constable’s Office, Louisiana Department of Corrections, Louisiana Sheriff’s Association, Louisiana Association of Chiefs of Police, Louisiana City Marshals and City Constables Association, Louisiana District Attorneys Association, Louisiana State Police, and the Louisiana Attorney General’s Office.
The U.S. Attorney’s Office Law Enforcement Community Coordinator, Mike Campbell, will help implement and assist in the operation of the program in conjunction with the Caddo Parish Sheriff’s Office. As LECC, Campbell acts as a liaison between the U.S. Attorney=s Office and local, state, and federal law enforcement. He assists with grants, coordinates and provides law enforcement training, and assists law enforcement agencies with special and community needs.
For more information about the firearms safety program, contact Mike Campbell at the U.S. Attorney’s Office at 318-676-3600 or the Caddo Parish Sheriff’s Office at 318-675-2170.
From left are Caddo Parish Sheriff’s Office Fleet Manager Mike Gregory; U.S. Attorney for the Middle District of Louisiana Walt Green; Holly Sheets, Victim Witness Coordinator for the U.S. Attorney’s Office Middle District of Louisiana; First Assistant U.S. Attorney for the Western District of Louisiana Alexander Van Hook; Baton Rouge Constable Reginald Brown; and Mike Campbell, Law Enforcement Coordinator for the Western District of Louisiana.
U.S. Attorney Urges Awareness of Threats of Violence in the WorkplaceRead the Press Release
BIRMINGHAM -- U.S. Attorney Joyce White Vance said the thoughts and prayers of the U.S. Attorney's Office are with UPS employees and the families of those who died today in a shooting at the company's customer service center and warehouse in Inglenook.
"It is a tragedy that, too often, someone decides to settle a workplace dispute with a gun and innocent people suffer and die," Vance said.
U.S. Attorney Vance encourages anyone who is aware of a threat of violence in a workplace or school to contact the local police department, sheriff or federal law enforcement.
Two Yantis, TX Men Sentenced to 60 Months Probation for Wire/Mail FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MICHAEL SCOTT CALHOUN, age 49, and TOMMY WAYNE DAVIS, age 47, both of Yantis, Texas, were sentenced for Conspiracy to Commit Wire Fraud/Mail Fraud, in violation of Title 18, United States Code, Section 1349.
CALHOUN was sentenced to five years probation. DAVIS was also sentenced to five years probation.
The charge arose from an investigation by the Federal Bureau of Investigation. The defendants were indicted in August, 2012.
The Indictment alleged that in or about August 2007 to in or about April 2010, in the Eastern District of Oklahoma and elsewhere, the defendants, knowingly and wilfully conspired with other persons known and unknown to the Grand Jury, to transmit or caused to be transmitted by means of a wire communication or the United States Mail, communication for the purpose to defraud the United States and Texas Capital Bank, a financial institution insured by the Federal Deposit Insurance Corporation, all in order to obtain money by means of false and fraudulent pretenses, representations, and promises.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings.
Assistant United States Attorney Chris Wilson represented the United States.
Two More Men Charged with Armed Craigslist Robberies, Shooting of Two VictimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Kansas City, Mo., men have been indicted for their roles in a conspiracy to commit a series of armed robberies against victims who were contacted via craigslist.
Thomas Thorpe, 25, and Debvon Buckner, 23, both of Kansas City, Mo., and Troy Wright, 21, of Grandview, Mo., were charged in a 13-count indictment returned by a federal grand jury in Kansas City, Mo., on Friday, Sept. 19, 2014. The indictment was unsealed and made public on Tuesday, Sept. 22, 2014, upon the arrest and initial court appearance of Wright. Thorpe was also arrested yesterday but has not yet had an initial court appearance.
The indictment replaces a federal criminal complaint that was filed against Buckner on Aug. 20, 2014, and adds additional defendants and charges, including allegations of an additional armed robbery on June 26, 2014.
The indictment alleges that Thorpe, Wright and Buckner participated in a conspiracy between May 1 and Sept. 19, 2014, to rob several individuals at gunpoint. According to the indictment, six armed robberies occurred after conspirators posted false advertisements to buy or sell items on craigslist.org in order to entice their victims to meet so that conspirators could steal money and electronics. Thorpe and Wright allegedly participated in all six of those armed robberies; Buckner is alleged to have participated in five of the armed robberies.
Thorpe, Wright and Buckner are each charged with five counts of aiding and abetting a robbery, four counts of aiding and abetting each other to brandish a firearm during a crime of violence and one count of aiding and abetting each other to discharge a firearm during a crime of violence. Thorpe and Wright are also charged together in an additional count of aiding and abetting a robbery and an additional count of aiding and abetting each other to brandish a firearm during a crime of violence.
July 16, 2014, Armed Robbery and Shooting
On the evening of July 16, 2014, according to an affidavit filed in support of the original criminal complaint, three victims (identified as M.N., M.K.N. and D.N., a minor) met Buckner at 5500 E. 84th Terrace, Kansas City, Mo., to look at a Hyundai Sonata that was listed for sale in a craigslist advertisement. Thorpe and Wright were allegedly hiding, armed with firearms. M.N. and D.N. took a test drive in the vehicle with Buckner, the affidavit says, and M.N. made a purchase offer. Buckner allegedly agreed, but stated he needed to call his wife about the purchase and walked away. As he walked away, Thorpe and Wright allegedly appeared and each pointed a firearm at the victims and demanded money.
The victims tried to return to their car, the affidavit says, but conspirators shot the two adult victims, striking M.N. several times and striking M.K.N. once. Conspirators allegedly took money and personal property (including a purse that contained $500) from the victims then shot M.N. again, striking him an additional time. Conspirators allegedly fled from the area in the Hyundai Sonata. One of the victims was transported to a local hospital for life-threatening injuries from multiple gunshot wounds.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to discharge a firearm during a crime of violence in relation to that robbery.
According to the affidavit, the telephone number used to contact the victims was the same number used to contact a separate victim in another armed robbery earlier the same day.
July 16, 2014, Armed Robbery #2
On the afternoon of July 16, 2014, this victim told police that he had listed an XBOX One for sale on craigslist. He arranged to meet a prospective buyer at Ridge Pointe Apartments in Kansas City, Mo. When he arrived, the affidavit said, Buckner approached him and asked to see the XBOX. The victim handed the XBOX to Buckner. Thorpe and Wright allegedly appeared and each pointed a firearm at the victim and demanded the XBOX One, XBOX games, and the accessories. They took those items, the indictment says, then fled to their vehicle.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
According to the affidavit, Kansas City Police detectives saw another craigslist advertisement the next day for a car for sale, which used the same telephone number. In the background of the photograph was a residence, which the detectives later identified as Buckner’s residence. They obtained location data for the cell phone and set up surveillance in the area of East US 40 Highway and Sterling. When Buckner boarded a metro bus, police officers took him into custody. He allegedly possessed the phone that was used to contact several victims and wore the Samsung Galaxy watch that had been stolen from the victim of an earlier robbery.
In addition to the two robberies on July 16, 2014, the indictment alleges that conspirators committed four earlier robberies.
July 3, 2014, Armed Robbery
On July 3, 2014, another victim told police that he had been robbed while trying to buy an XBOX from a craigslist advertisement. The victim met Buckner at Ridge Pointe Apartments, the affidavit says, after he had agreed to give him $160 and a Samsung Galaxy watch to buy the XBOX. One conspirator was in hiding and armed with a firearm, the indictment says, and another conspirator was waiting in the getaway vehicle. Buckner refused to do the deal, the affidavit says. When the victim began walking back to his car, another conspirator appeared, pointed a firearm at him and demanded money. While this man pointed the gun at him, the affidavit says, another conspirator came over and frisked the victim. The two men took the watch and the cash, and then fled.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
June 30, 2014, Armed Robbery
One victim allegedly met Buckner on June 30, 2014, to purchase a cell phone that was advertised on craigslist. She decided not to purchase the phone and began to walk away, when the other conspirators pointed firearms at her and demanded money. According to the affidavit, after she gave the men $100 they demanded her car keys, cellphone and purse. She pressed the panic button on her car keys and when alarm sounded, the affidavit says, all three of the men ran.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
June 30, 2014, Armed Robbery #2
Another victim met Buckner later that night on the same date, according to the affidavit. She told police officers that she had been contacted about purchasing an XBOX One that she had posted for sale on craigslist. When she arrived (with three other persons, one of whom was a minor) at Ridge Pointe Apartments, Buckner allegedly showed her that he had cash to make the purchase. As soon as she took out the XBOX, he allegedly took it and ran. Thorpe and Wright, armed with handguns, allegedly approached and pointed the guns at the victims in the vehicle. They demanded all of their money, purses, and XBOX games and controllers. One of the victims asked for her purse back, the affidavit says, and one of the conspirators said, “Get back in the car or I’ll shoot you” and racked the slide on his gun.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
June 26, 2014, Armed Robbery
According to the indictment, conspirators posted a Samsung plasma TV for sale on craigslist and, the same day, communicated with a victim for its purchase. The victims (identified in the indictment as C.S., J.G. and A.J., a minor) were led to an apartment on E. 42nd Street, Kansas City, Mo., where another conspirator allegedly was waiting armed with two firearms. When J.G., holding the minor A.J. in his arms, took out his wallet, the other conspirator appeared with a firearm in each hand, pointed them at the victims, and stole money from C.S. and J.G.
Thorpe and Wright are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Matthew P. Wolesky and Jess E. Michaelsen. It was investigated by the FBI and the Kansas City, Mo., Police Department.Two Mercer County Men Appear in Federal Court on Drug ChargesRead the Press Release
Bluefield, W.Va. – United States Attorney Booth Goodwin announced today that Michael Devon Harmon, 36, of Princeton, was sentenced today in federal court in Bluefield to 9 years in federal prison for distribution of hydromorphone. Harmon pled guilty in May of 2014, admitting that on July 24, 2013, he sold two hydromorphone pills to a confidential informant in Princeton. Harmon also admitted that in addition to hydromorphone, he distributed cocaine base and cocaine to the informant during the summer of 2013.
Marvin Gillespie, 62, of Bluefield, also appeared in federal court in Bluefield and pled guilty to distribution of hydromorphone. Gillespie admitted that on February 6, 2014, he sold two hydromorphone pills to a confidential informant in Bluefield. Gillespie faces up to 20 years in prison and a $1,000,000 fine when he is sentenced on January 27, 2015.
These cases were investigated by the Southern West Virginia Drug and Violent Crime Task Force. Assistant United States Attorney John File handled the prosecution. These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Two Additional Ironworkers Plead GuiltyRead the Press Release
PHILADELPHIA- Two members of the Ironworkers Local 401, James Walsh and Greg Sullivan, pleaded guilty today in United States District Court before the Honorable Michael Baylson.
James Walsh, 49, of Philadelphia, PA, pleaded guilty to RICO conspiracy, two counts of maliciously damaging property by means of fire, conspiracy to maliciously damage property by means of fire, two counts of use of fire to commit a felony, and attempted maliciously damaging property by means of fire. Walsh participated in a series of incidents on behalf of the Ironworkers Local 401 as part of the plan by the defendants to force non-union contractors to hire union labor. Specifically, Walsh admitted that he participated in the Quaker Meetinghouse arson, an arson on Grays Avenue in Philadelphia, and an attempted arson in Malvern as well as other episodes – all in retaliation for the contractors failure to hire union ironworkers. A sentencing hearing is scheduled for January 12, 2015. Walsh faces a total statutory maximum sentence of 110 years in prison, with a 15 year mandatory term, up to three years of supervised release, a fine of up to $1.5 million, and a $600 special assessment.
Greg Sullivan, 49, of Philadelphia, PA, pleaded guilty to conspiracy to maliciously damage property by means of fire, and Hobbs Act Extortion. Sullivan participated in the Grays Avenue arson and the attempted arson in Malvern. A sentencing hearing is scheduled for January 20, 2015. Sullivan faces a total maximum statutory sentence of 40 years in prison, up to three years of supervised release, a fine of up to $500,000, and a $200 special assessment.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Three Indicted for Role in Suboxone, Laboratory Fraud SchemeRead the Press Release
ABINGDON, VIRGINIA – A Federal grand jury sitting in the United States District Court for the Western District of Virginia in Abingdon has indicted three individuals on healthcare fraud and kickback charges.
In an indictment returned today, the grand jury has charged Beth Palin, 46, of Bristol, Tenn., Joseph Webb, 52, of Bristol, Tenn., and Mary Curtiss, 59, of Bristol, Tenn., each with one count of healthcare fraud, one count of conspiracy to commit healthcare fraud and one count of offering or paying a kickback.
According to the indictment, Palin and Webb owned Bristol Laboratories and Mountain Empire Medical Care. Dr. Curtiss, an ear, nose and throat specialist, was the physician of record at Mountain Empire Medical Care. While working at Mountain Empire Medical Care, Curtiss purported to be running a substance abuse treatment program, prescribing Suboxone, Subutex and generic buprenorphine for the treatment of opiate addiction. Mountain Empire Medical Care operated on a cash-only basis and did not accept Medicare, Medicaid or insurance of any kind, charging cash patients as much as $250 per visit.
Mountain Empire Medical Care also required that every patient undergo a urine drug screen at every weekly appointment, which was sent exclusively to Bristol Labs, which did accept private insurance, Medicare and Medicaid. The urine drug screen was a precondition to getting a Suboxone prescription. Bristol Labs, Mountain Empire Medical Care, and CKK, a now-deceased doctor who operated a substance abuse clinic in the same manner as Mountain Empire Medical Care, and also exclusively used Bristol Labs for urine drug screens, treated insured patients with two different, expensive automated urine drug screens. Uninsured patients were treated using one, much cheaper non-automated test, referred to as a “point of care” or “quick cup” drug screen.
Medicaid, Medicare or a patient’s private insurance carrier were charged up to $2,000 for each urine drug screen for the in-house testing. Medicaid, Medicare or a patient’s private insurance carrier were additionally charged up to $1,125 for each urine drug screen confirmation sent to an outside laboratory. Insured patients paid nothing out of pocket for either test. Patients without insurance were charged between $10-$25 cash for the single “quick cup” drug screen.
While working as Mountain Empire Medical Care’s primary physician, Curtiss was paid $1,400 per day, no matter how much work she did or how many patients she saw. Curtiss’ salary was well above market value and was only possible due to the large income generated by her procedure of ordering each and every patient to undergo weekly drug screening at Bristol Labs. A Bristol Labs employee was also always working at Mountain Empire Medical Care, serving as office manager, urine drug screen “collector” and receptionist.
During the course of the scheme, Palin, Webb, Curtiss and CKW, caused fraudulent billing in the amount of $12,459,211 to be submitted to Virginia Medicaid, TennCare, Medicare and private insurance companies, and received over $1,203,000 to which they were not entitled.
If convicted each defendants faces up to 25 years in prison and fines of $750,000.
The investigation of the case was conducted by the Department of Health and Human Services, Office of Inspector General, the Virginia Office of the Attorney General, Medicaid Fraud Control Unit, the Tennessee Bureau of Investigation, the United States Attorney’s Office for the Eastern District of Tennessee, the Virginia State Police, the Bristol, Virginia Police Department, the Bristol, Tennessee Police Department, the Scott County Sheriff’s Office and the Internal Revenue Service, Criminal Investigations Division. Special Assistant United States Attorney Janine Myatt and Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Thirteen Arrested in Alleged Drug Trafficking ConspiracyRead the Press Release
COLUMBUS – An investigation by federal, state and local law enforcement in Central Ohio has led to the arrest of 13 people on charges of conspiracy to distribute and possession with intent to distribute cocaine, methamphetamine and heroin.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio State Highway Patrol Superintendent Paul Pride, Columbus Police Chief Kim Jacobs, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Michael Boxler, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Franklin County Sheriff Zach Scott announced the indictment today following early morning efforts to arrest and locate the defendants.
The indictment alleges that since January 2011 the group has conspired to distribute numerous kilograms of heroin. Those arrested also allegedly distributed or possessed with the intent to distribute numerous kilograms of cocaine. Five of the individuals arrested allegedly distributed or possessed with the intent to distribute methamphetamine.
Investigators allege that members of the group purchased vehicles with proceeds from the alleged illegal drug activity or in an attempt to launder such proceeds.
“I applaud the combined efforts of law enforcement,” U.S. Attorney Stewart said. “We will continue to work to prevent the damage that illegal drug activity causes to our communities.”
"The Patrol is committed to fighting the war on drugs from the front lines by working collaboratively with the DEA and other law enforcement partners to bring to justice individuals and groups involved in criminal activity. Whether a citizen is traveling Ohio’s roadways, working or living within a community, our overarching goal is to make Ohio safe. Today’s operation is an example of just that,” stated Colonel Paul Pride, Ohio State Highway Patrol superintendent.
“As Chief, I am greatly concerned for the families of those Columbus residents who have become addicted to illegal drugs. Drug addiction is a leading cause of criminal behavior and our community is safer today thanks to the combined efforts of our Narcotics Bureau, federal, state and local law enforcement. Our efforts to diminish the supply side of this problem may help reduce violence and access to these damaging drugs,” said Kim Jacobs, Chief of Police, Columbus Division of Police.
“By following the money trail, IRS special agents helped to disrupt and dismantle this major drug trafficking organization that attempted to conceal the true source of their money from the government,” said Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office.
“This investigation is a prime example of agencies working together to send a loud and clear message that drug trafficking will not be tolerated in Franklin County,” Sheriff Zach Scott stated. “The cooperation of multiple agencies can effectively thwart the efforts of dealers who are bringing harmful drugs into Central Ohio and destroying lives.”
U.S. Attorney Stewart commended the cooperative investigation by the local, state and federal law enforcement, as well as Assistant U.S. Attorneys Tim Prichard and Dave Bosley, who are prosecuting the case.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
A list of those charged with details of the charges is attached.
No.
Name
Age
Address
Counts
1
RUBEN L. QUIROZ
33
408 Yarmouth Lane
Columbus, Ohio1, 2
2
LIBORIO ALCAUTER
47
6431 Sunbury Road
Westerville, Ohio1
3
ERIKA V. BEDOLLA
28
2608 Northwold Rd.
Columbus, Ohio1
4
ALEJANDRINA GARCIA
28
3479 Homestead Dr.
Columbus, Ohio1
5
CARLOS S. CARRASCO
34
2632 Northwold Rd.
Columbus, Ohio1
6
EBRIMA SUMAREH
30
614 Slippery Rock
Columbus, Ohio1
7
FAVIO N. MORALES
40
Toledo, Ohio
1, 2
8
FELIPE R. SOLANO
45
3479 Homestead Drive
Columbus, Ohio1, 2
9
JAVIER A. CASTILLO
26
2540 Timber Trail
Columbus, Ohio1
10
JOSUE SOLIS
37
1374 Gilead Court
Galloway, Ohio1
11
LORENA SEVILLA-MORA
34
5533 Thumbleweed Drive
Galloway, Ohio1
12
MIRIAM F. RAMIREZ
29
7667 Scofield Court
Dublin, Ohio1, 2, 6
13
RODOLFO R. PADILLA
25
4128 Atlanta Drive
Columbus, Ohio1
Count 1
Conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine.
21 U.S.C. § 84610 years - life
$10,000,000 fine
At least 5 years supervised releaseCount 2
Conspiracy to distribute and possess with intent to distribute methamphetamine.
21 U.S.C. § 84610 years
$250,000 fine
At least 2 years supervised releaseCount 6
Monetary transaction to conceal or disguise proceeds of unlawful activity
18 USC §1956(a)(1)(B)(i) and 18 USC §220 years
$500,000 fine
3 years supervised releaseTexas Man Sentenced for Commercial Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Grapevine, Texas, man convicted of Commercial Sex Trafficking was sentenced on September 22, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Timothy Gravens, age 55, was sentenced to 15 years in federal prison, lifetime of supervised release, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and is to forfeit an Apple iPhone, a Canon camera, a Sony Cybershot camera, and $300 in U.S. currency. Gravens was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2013 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls. All nine men were indicted for Commercial Sex Trafficking.
The conviction stemmed from Gravens responding to a Craigslist.com advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several emails with a person Gravens believed to be associated with a 13-year old girl, but who in fact was an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay to have sex with the young girl, which was $300.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Gravens was immediately turned over to the custody of the U.S. Marshal's Service.
Tacoma Resident who Hid Guns and Heroin Throughout Apartment Sentenced to over 10 Years in PrisonRead the Press Release
A 28-year-old Tacoma man was sentenced today in U.S. District Court in Tacoma to 130 months in prison for Conspiracy to Possess with Intent to Distribute Heroin and Possession of a Firearm in Furtherance of a Drug Trafficking Offense, announced U.S. Attorney Jenny A. Durkan. ARNOLDO MENDOZA RAMOS is a Mexican national who likely will be deported following his prison term. At the sentencing hearing U.S. District Judge Ronald B. Leighton noted heroin is a resurgent problem in Western Washington and a threat to our communities.
“Heroin is a growing public safety and public health problem,” said U. S. Attorney Jenny Durkan. “We will hold the people dealing death accountable.”
According to records filed in the case, on four occasions in September and October 2013, RAMOS, and his girlfriend Ana L. Gaytan Torres, 38, distributed heroin to a person working with law enforcement. The heroin sales were made at various parking lots in Tacoma and Lakewood, Washington. On October 24, 2013, law enforcement executed a search warrant at the couple’s Tacoma apartment. They seized 2.4 pounds of heroin. Some of the heroin was hidden in a freezer door, in a can marked as baby formula, in a macaroni and cheese box and in a tub of beans. Inside an armrest of the couch law enforcement found two handguns and additional heroin packaged for sale. In the bedroom closet agents found a shotgun that had been reported stolen in Port Orchard, Washington. More than $18,000 in cash, eleven cell phones and small amounts of methamphetamine and cocaine were also found in the apartment.
RAMOS pleaded guilty in June 2014. Torres pleaded guilty in May 2014 and will be sentenced in October 2014.
The use of firearms in furtherance of a drug trafficking offense carries a mandatory minimum additional consecutive five year sentence to the sentence imposed on the underlying drug offense.
The case was investigated by the Drug Enforcement Administration and the Bremerton Police Department.
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and Grady Leupold.
Suburban Immigration Attorney and Interpreter Indicted and Arrested for Allegedly Falsifying Clients’ Asylum RequestsRead the Press Release
CHICAGO ― A suburban immigration attorney and a man who provided translation services for the lawyer and his law firm were arrested today after being indicted on federal charges for allegedly falsifying requests for asylum for a dozen clients over approximately a decade. In some instances, the charges allege that the attorney and interpreter falsely claimed that their clients were seeking asylum because their clients were subjected to religious persecution by Islamic extremists in Iraq.
The attorney, ROBERT DEKELAITA, 51, of Glenview, and his contract interpreter, ADAM BENJAMIN, 61, of Skokie, were each charged with one count of conspiracy to commit immigration and naturalization fraud. DeKelaita was also charged with three counts each of immigration fraud and suborning perjury, and Benjamin was also charged with two counts each of immigration fraud and suborning perjury in a seven-count indictment that was returned by a federal grand jury on Sept. 4 and unsealed today following their arrests.
Federal agents with the Department of Homeland Security Office of Inspector General and the FBI today executed a search warrant at the law offices of R.W. DeKelaita & Associates, LLC, located in the 5800 block of West Dempster Street, in Morton Grove.
DeKelaita and Benjamin were scheduled to be arraigned at 2 p.m. today before U.S. District Judge Matthew Kennelly in Federal Court.
The arrests and indictment were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Armando Lopez, Special Agent-in-Charge of the Homeland Security Office of Inspector General in Chicago; and Robert J. Holley, Special Agentin- Charge of the Chicago Office of the Federal Bureau of Investigation. Homeland Security’s U.S. Citizenship and Immigration Services (USCIS), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and Customs and Border Protection, as well as the Farmington Hills, Mich., Police Department, assisted in the investigation.
Individuals granted asylum may later seek lawful permanent residence and, eventually, naturalized U.S. citizenship. The DHS Office of Inspector General will coordinate with other DHS branches to review the immigration status of DeKelaita’s clients, Mr. Lopez said.
The indictment alleges that between 2000 and 2011, in exchange for fees, DeKelaita and Benjamin agreed to submit false information to USCIS on behalf of clients who were foreign nationals, as well as coach these clients on how to best present the false information to an asylum officer, and represent these clients in presenting the false information during asylum interviews.
As part of the conspiracy, DeKelaita allegedly conducted screening interviews of his clients to determine information that might bar clients from lawfully receiving asylum. He then completed immigration forms on their behalf using false names, false religions, false travel dates, false dates of entry into the United States, false birthdays, and false family histories, and allegedly submitted these forms to USCIS. DeKelaita also wrote and created false asylum statements detailing fictitious accounts of purported religious persecution, including false accounts of rape and murder, the charges allege. The indictment alleges examples in which DeKelaita’s clients falsely claimed that they or immediate family members were victims of violence or threatened with violence by Islamic extremists in Iraq.
DeKelaita allegedly also submitted and caused the submission of false affidavits, baptismal certificates, identity documents, and other documents to USCIS and the Executive Office for Immigration Review on behalf of their clients. DeKelaita signed his clients’ names on certain immigration forms without their knowledge or permission, the indictment alleges.
DeKelaita and Benjamin allegedly assisted clients in memorizing false information in preparing them for asylum interviews. Benjamin allegedly intentionally mistranslated answers given by clients and added testimony not actually stated by them in an effort to secure asylum on their behalf. DeKelaita and Benjamin agreed and intended that their clients would obtain asylum and use it to seek lawful permanent residence and naturalization, according to the charges.
The government is being represented by Assistant U.S. Attorney Christopher Grohman.
Conspiracy to commit immigration and naturalization fraud, as well as each count of suborning perjury, carries a maximum sentence of five years in prison and a $250,000 fine, while each count of immigration fraud carries a maximum penalty of 10 years in prison and a $250,000 fine. The indictment also seeks forfeiture of approximately $60,000 from DeKelaita. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
State Prisoner Charged with Mailing Threatening Communications to Monroe County JudgeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton today charged an inmate at a state prison with mailing communications threatening to injure and kill a state court judge in Monroe County.
According to United States Attorney Peter Smith, the defendant, Devon Williams, age 24, an inmate at the State Correctional Institution in Albion, Pennsylvania, allegedly mailed a letter in January 2014 from the prison to the Monroe County Courthouse threatening to injure and kill a judge of the Court of Common Pleas.
The charge stems from an investigation by the United States Postal Inspection Service and the Pennsylvania State Police.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
If convicted of the charge, Williams faces up to five years in prison and a $250,000 fine.
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.
****Slidell Man, Casey Thonn, Charged with Defrauding the Deepwater Horizon Economic Claims CenterRead the Press Release
The United States Attorney’s Office announced today that CASEY THONN, 35, a resident of Slidell, Louisiana, was charged in a two-count Bill of Information with wire fraud in connection with claims he filed with the Deepwater Horizon Economic Claims Center (“DHECC”).
According to the Bill of Information, on June 24, 2012, THONN submitted multiple claims with the Seafood Compensation Program administered by the DHECC based on losses he allegedly sustained as result of the April 2010 oil spill. Subsequently, in early November 2012, the DHECC notified THONN that he was eligible to receive approximately $1,750.36 for these claims.
In turn, on December 3, 2012, THONN submitted Requests for Reconsideration of his original eligibility notices requesting his compensation be recalculated based on a false Federal tax return THONN provided to the DHECC. In that false submission, THONN claimed he received $156,000 of gross revenue from commercial shrimping sales in 2009. This fraudulent submission increased the defendant’s compensation from $1,750.36 to a total of $357,002.35 for these claims. In March 2013, THONN received a total of $357,002.35 from the DHECC based on his fraudulent submissions.
The case was investigated by the Federal Bureau of Investigation (“FBI”) and is being prosecuted by Assistant United States Attorney Matt Coman.
(Download Bill of Information )
Six Current and Former Los Angeles Sheriff’s Deputies Sentenced to Federal Prison for Obstructing Federal Civil Rights InvestigationRead the Press Release
LOS ANGELES – Six sworn deputies who were working in the Los Angeles Sheriff’s Department each were sentenced today to federal prison terms for
interfering with a federal civil rights investigation into misconduct at the Men’s Central Jail.The six defendants received prison terms of up to 41 months from a federal judge who said they all lacked “courage to do what is right” and then failed to show “even the slightest remorse.”
United States District Judge Percy Anderson issued the sentences after a federal jury determined that the defendants, including two lieutenants, attempted to influence witnesses, threatened an FBI agent with arrest and concealed an FBI informant who should have been turned over to federal authorities.
All six of the defendants were convicted of participating in a broad conspiracy to obstruct justice, a plot that began in the summer of 2011 after they learned that a jail inmate was an FBI informant and was acting as a cooperator in a federal investigation into corruption and civil rights violations at the jail.
“Blind obedience to a corrupt culture has serious consequences,” Judge Anderson told the defendants before ordering each of them to begin prison sentences in the coming months.
Acting United States Attorney Stephanie Yonekura stated: “In their corrupt attempt to shield the Sheriff’s Department from scrutiny, these deputies brought scandal and shame to themselves and their department. These deputies decided to impede a federal investigation, and in doing so they threw away their careers and their freedom. These law enforcement officers have now been held accountable for their unlawful actions.”
The defendants who were sentenced today are:
Gregory Thompson, 54, a now-retired lieutenant who oversaw LASD’s Operation Safe Jails Program, who was ordered to serve 37 months in prison and to pay a $7,500 fine;
Lieutenant Stephen Leavins, 52, who was assigned to the LASD’s Internal Criminal Investigations Bureau, who received a 41-month prison sentence;
Gerard Smith, 42, a deputy who was assigned to the Operation Safe Jails Program, who was ordered to serve 21 months in prison;
Mickey Manzo, 34, a deputy who was assigned to the Operation Safe Jails Program, who received a 24-month sentence;
Scott Craig, 50, a sergeant who was assigned to the Internal Criminal Investigations Bureau, who was sentenced to 33 months; and
Maricela Long, 46, a sergeant who assigned to the Internal Criminal Investigations Bureau, who received a sentence of two years in federal prison.
Following the completion of their prison sentences, each defendant will serve one year on supervised release.
“Interference with a federal investigation cannot be tolerated,” said Bill Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The sentences imposed today allow us to move forward toward an environment of mutual trust and the common goal of delivering justice to victims of crime. I look forward to continued collaboration with our trusted partners at the Los Angeles County Sheriff’s Department.”
All six were found guilty on July 1 after a jury heard evidence about how the defendants learned that an inmate received a cellular phone from a deputy sheriff who took a bribe and that the inmate was part of a federal civil rights and corruption investigation. The deputies took affirmative steps to hide the cooperator from the FBI and the United States Marshals Service, which were attempting to bring the inmate into federal custody pursuant to an order issued by a federal judge. As part of the conspiracy, records were altered to make it appear as if the cooperator had been released, but he was re-booked under different names.
The deputies also engaged in witness tampering by attempting to influence witnesses to not cooperate with the federal grand jury investigation, including the informant and the sheriff’s deputy who had taken a bribe to smuggle the cell phone into the jail.
Over the course of several weeks, the defendants sought an order from a Los Angeles Superior Court judge that would have compelled the FBI to turn over information about its investigation to LASD. After the judge refused to issue such an order, based on a lack of jurisdiction, Craig and Long confronted an FBI special agent at her residence in an attempt to intimidate her into providing details about the investigation and to try to deter the FBI from conducting the federal investigation. The sergeants falsely told the special agent, and later her supervisor, that they were obtaining a warrant for her arrest.
Speaking of the confrontation at the special agent’s home, Judge Anderson said it was one of the most striking incidents related to the obstruction conspiracy, particularly because it was videotaped. “They did this to scare and intimidate the FBI…and they intended to obstruct justice,” the judge said.
In addition to the conspiracy count, all six deputies were convicted of obstruction of justice offenses. Craig and Long were also found guilty of making false statements to the FBI agent and to her supervisor about seeking a warrant for her arrest.
Thompson, Craig and Leavins are no longer with the Sheriff’s Department. Smith is on approved leave. Manzo and Long, according to the Sheriff’s Department, were relieved of duty without pay in December 2013.
Release No. 14-127
Second California Man Pleads Guilty to Federal Charges Arising out of Conspiracy to Distibute Methamphetamine from California to New MexicoRead the Press Release
ALBUQUERQUE – Mario Humberto Llantada, 31, of La Puente, Calif., pleaded guilty today in federal court in Las Cruces, N.M., to a four-count indictment charging him with methamphetamine trafficking and money laundering charges. The guilty plea was entered without the benefit of any plea agreement.
Mario Llantada and his co-defendant Martin Llantada, 41, also of La Puente, Calif., were indicted on March 19, 2014, and charged with conspiracy to distribute methamphetamine from Los Angeles, Calif., to Doña Ana County, N.M. The indictment also charged Mario Llantada with money laundering and using a communication facility in furtherance of a drug trafficking crime. On Aug. 14, 2014, the indictment was superseded to add a fourth count, possession of methamphetamine with intent to distribute, against Mario Llantada.
According to court filings, between March 4, 2014 and March 13, 2014, the defendants conspired to sell four pounds of methamphetamine to an undercover FBI agent in Doña Ana County. The undercover agent negotiated the purchase of the methamphetamine during a series of telephone calls with Mario Llantada, and paid for the drugs by making several large cash deposits into a bank account as directed by Mario Llantada. Mario Llantada was arrested on March 21, 2014, after he transported two pounds of methamphetamine to New Mexico.
Today, Mario Llantada pled guilty to all four counts of the superseding indictment. Mario Llantada has been in federal custody since his arrest and remains detained pending sentencing, which has yet to be scheduled. At sentencing, he faces a prison sentence of not less than ten years and not more than life imprisonment.
Co-defendant Martin Llantada was arrested on March 28, 2014, and has been in federal custody since that time. On Sept. 11, 2014, Martin Llantada pled guilty to Count 1 of the indictment charging him with conspiracy to distribute an aggregate of four pounds of methamphetamine in Doña Ana County. Under the terms of his plea agreement, Martin Llantada will be sentenced to a prison sentence of 121 months and not less than five years supervised release. He remains detained pending his sentencing hearing, which has not yet been scheduled.
This case was investigated by the Las Cruces office of the FBI and the FBI Riverside RA Gang Impact Team, which is comprised of the FBI, San Bernardino Police Department, San Bernardino Sheriff’s Office and California Highway Patrol. The case is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Rochester Woman Sentenced for Her Role in Oxycontin Distribution ConspiracyRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr., announced today that Bettina Wilson, 34, of Rochester, NY, who was convicted of acquiring Oxycodone through fraud, was sentenced by U.S. District Judge David G. Larimer to one year probation and ordered to pay restitution totaling $7,573.65.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Wilson obtained fraudulent prescriptions for OxyContin by providing her Medicaid information to James Marsh. Marsh used the defendant’s Medicaid information to obtain the fraudulent prescriptions, which Wilson filled for Marsh in exchange for payments of $100 each. From May 2009 to February 2010, Wilson filled at least eight fraudulent prescriptions for Marsh. On August 8, 2014, Marsh was convicted by a federal jury of a narcotics conspiracy and is awaiting sentencing.
Wilson and Marsh 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 Radiologist Charged with Health Care FraudRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Thomas Stephenson, M.D., 71, of Rochester, NY, was charged with heath care fraud. 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 case, stated that Stephenson is accused of submitting false and fraudulent claims for reimbursement to Excellus Health, MVP Health Care and Medicare for services that were not provided. Specifically, from 2007 to 2010, the defendant falsely represented on multiple occasions that he had performed and interpreted two x-rays when in fact he had only performed and interpreted single x-ray images. As a result, Stephenson fraudulently claimed reimbursements from the three health care plans in the amount of $183,279.30.
The defendant made an appearance before U.S. District Judge Frank P. Geraci, Jr. and is due back in court October 14, 2014, at 3:30 p.m.
The criminal charge is the culmination of an investigation by Special Agents of Federal Bureau of Investigation.
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.Richmond Man Sentenced for Massive Tax Fraud and Obstruction of JusticeRead the Press Release
RICHMOND, Va. – Billy Gene Jefferson, Jr., 52, of Richmond, was sentenced today to 20 years in prison for engaging in a nearly $13 million tax fraud scheme involving the rehabilitation of historic properties in Richmond, trying to hide and spend millions in ill-gotten gains to avoid paying back his victims after he was charged and pleaded guilty in federal court, and stealing his brother’s identity and trying to flee the country to avoid justice.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement after the sentence was handed down by U.S. District Judge John A. Gibney, Jr.
On Dec. 19, 2013, Jefferson pleaded guilty to conducting a major fraud against the United States and engaging in unlawful monetary transactions for his role in orchestrating a multimillion dollar rehabilitation tax credit scheme between 2009 and 2012. During that time, Jefferson applied for and received millions in state and federal historic tax credits in connection with the rehabilitation of a former tobacco manufacturing plant in the Manchester Industrial Historic District of Richmond (referred to as the TABAC Project), followed by the rehabilitation of ten historic buildings located in the Fan District of Richmond (referred to as the River City Renaissance Projects). Jefferson then sold many of those tax credits to corporate investors. However, Jefferson grossly inflated the rehabilitation costs on the properties at issue, and as a result, he fraudulently obtained millions in state and federal tax credits. The loss in federal tax credits was $5,754,616, and the loss in state credits was $7,193,270, for a combined total of approximately $12,947,886.
After Jefferson pleaded guilty on Dec. 19, 2013, he was released on bond, allowing him to gather funds to repay his victims before sentencing. While awaiting sentencing, however, law enforcement discovered Jefferson was stealing and spending funds that could have been used to repay his victims, including orchestrating hundreds of covert transactions designed to spend and conceal over $7 million. At a hearing held on September 9, 2014, the United States presented evidence that Jefferson had illegally amassed up to $2.5 million for a cash hoard, stole over $2.15 million in assets during a month-long trip to Las Vegas, and opened a new bank account and conducted several financial transactions to evade a pretrial release bond requirement to report any transactions over $25,000 to the IRS. Investigators also discovered that Jefferson had created a PVC pipe vault designed to hold his cash hoard. After his arrest, Jefferson asked a friend to throw the pipe away. Instead, on Feb. 28, 2014, the friend led FBI and U.S. Postal Inspection Service investigators to the empty pipe which was later presented as evidence against the defendant.
In addition to hiding and spending down his assets, Jefferson engaged in a thwarted attempt to flee the United States to avoid sentencing and further prosecution. As part of this effort, Jefferson created a false Arkansas driver’s license in the name of his brother, but with a picture of himself, and Jefferson then used the false ID while attempting to charter a one-way flight to Cranfield, England. Jefferson later pleaded guilty on June 4, 2014, to unlawfully transferring a false identification document and aggravated identity theft for using his brother’s identity.
Judge Gibney consolidated both cases for today’s sentencing hearing. As part of his plea agreement, Jefferson has agreed to pay full restitution for the tax credit scheme, which could range between $9.6 million up to $12.9 million. Due to issues in identifying the final amount of restitution and the victims, the court continued the restitution hearing for 60 days.
This case was investigated by IRS-CI, FBI’s Richmond Field Office, U.S. Postal Inspection Service, and Virginia State Police, with assistance from the Virginia Department of Historic Resources. Assistant U.S. Attorneys Michael Gill and Wingate Grant and Senior Assistant Attorney General and Special Assistant United States Attorney Patrick Dorgan Patrick Dorgan are prosecuting the case on behalf of the United States.
This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office, and it also serves as an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force. For more information on FFETF, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:13CR212 and 3:14CR066.
Reading Man Pleads Guilty to Participating in Monroe County-Based Heroin ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 57-year-old Reading, Pennsylvania man pleaded guilty today before U.S. District Court Judge Robert D. Mariani to participating in a heroin trafficking conspiracy.
According to United States Attorney Peter Smith, the defendant, Richard Carvajal, admitted to conspiring with others in Monroe County, Berks County, and elsewhere in 2012 and 2013, to distribute and possess with intent to distribute heroin.
Carvajal was originally indicted by a federal grand jury in June 2013, and subsequently charged in a superseding indictment in March 2014. The charge against Carvajal resulted from an investigation by the Drug Enforcement Administration, U.S. Immigration and Customs (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, and Berks County Detectives.
Carvajal faces a potential maximum sentence of 20 years in prison and a $1 million fine. Sentencing was scheduled for January 2015.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Portland Man Sentenced to Four Years for Transporting Women Interstate for ProstitutionRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Samuel
Gravely, 28, of Portland, Maine, was sentenced today in U.S. District Court by Judge Nancy
Torresen to four years in prison and three years of supervised release for interstate transportation
of three women for prostitution. On November 20, 2013, Gravely pleaded guilty plea to the
charge.According to the indictment and trial evidence, on March 27, 2013, Gravely and co-
defendant, Fritz Blanchard, caused a 20-year-old Presque Isle woman and a 17-year-old Portland
minor to work as prostitutes at a Portland hotel, advertising their services on backpage.com. On
March 28, Gravely and Blanchard drove the two women, and a 19-year-old Portland woman,
from Portland to Boston intending that the three work as prostitutes there. When they arrived in
Boston, Blanchard took two of the women to a downtown street and told them how to attract
customers and engage in prostitution.Blanchard was convicted of aiding and abetting interstate transportation for prostitution
after a four-day jury trial that ended on August 28, 2014. He awaits sentencing.The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland
Security Investigations, with assistance from the Boston Police Department; the Federal Bureau
of Investigation; the Portland, Presque Isle, Old Town, Brunswick and Saco Police Departments;
the Maine Drug Enforcement Agency; and Cumberland County Sheriff’s Office.Plymouth County Man Sentenced to Prison for Methamphetamine ConvictionRead the Press Release
A man who conspired to distribute methamphetamine was sentenced September 11, 2014, to more than eleven years in federal prison.
Jason Moore, 30, from LeMars, Iowa, received the prison term after an April 25, 2014, guilty plea to conspiring to distribute methamphetamine.
At the guilty plea, Moore admitted his involvement in a conspiracy from about June of 2012 through March 2013, that distributed more than 500 grams of actual (pure) methamphetamine. During the time period of the conspiracy, Moore lived in Northwest Iowa and sold methamphetamine to various customers in Northwest and Central Iowa. Moore traveled to Des Moines, Iowa one or two times a week to obtain methamphetamine for resale in Central and Northwest Iowa.
Moore was sentenced in Sioux City by United States District Court Judge Donald E. O’Brien. Moore was sentenced to 162 months with credit for 19 months previously served for a current sentence of 143 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Moore is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Clay County Sheriff’s Office, who was assisted by the Iowa Great Lakes Drug Task Force, Iowa Division of Narcotics Enforcement, Spirit Lake Police Department, Le Mars Police Department, Hawarden Police Department, O’Brien County Sheriff’s Office, Sheldon Police Department, and the Central Iowa Drug Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4039.
Owner of Tax Preparation Business Pleads Guilty to Tax FraudRead the Press Release
Filed 283 False Tax Returns, Resulting in the IRS Paying Almost $1 Million in Refunds
Baltimore, Maryland – Jennifer Rodriguez, age 40, of Hyattsville, Maryland pleaded guilty today to conspiring to defraud the United States in connection with the filing of 291 false tax returns.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.“Identity thieves are becoming more creative and conniving,” stated Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington, D.C. Field Office. “They steal identities, steal from the U.S. taxpayer and prey upon innocent victims.”
According to her plea agreement, Rodriguez owned a tax preparation service known as Latin Multi Services, located in Silver Spring, Maryland. From October or November 2010 to January 2012, Rodriguez filed false income tax returns using the stolen identities of Puerto Rico residents. The stolen identities were obtained from a co-conspirator residing in Puerto Rico who appeared to group the stolen identities by families, including minor children. Rodriguez falsely listed the tax payers’ home addresses as her own home address in Maryland, or variations of her business address. These tax returns also included fabricated income and deductions. All of the fraudulent returns requested refunds to be deposited in bank accounts that Rodriguez or a co-conspirator controlled.Over the course of the scheme, Rodriguez filed 283 false tax returns which caused IRS to pay $983,382 in fraudulent refunds.
Rodriguez faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz scheduled sentencing for January 12, 2015 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.Orchard Park Motel Owners Sentenced for Immigration OffensesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Mahesh Ambu, 54, and his wife, Jyotiben Ambu, 53, both natives of Tanzania with British citizenship who currently reside in Orchard Park, NY, were sentenced by U.S. District Court Judge Elizabeth A. Wolford for their convictions on immigration charges.
Mahesh Ambu, who was convicted of unlawfully attempting to procure naturalization, was sentenced to time served and one year supervised release. Jyotiben Ambu, who was convicted of entering the United States by means of concealing a material fact, was also sentenced to time served.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that the defendants, who own and operate the Orchard Park Inn in Orchard Park, applied for naturalization in 2008. On their application, both defendants falsely claimed that they had never lied to immigration officers in the past to gain immigration benefits. Both defendants did in fact lie on their 2003 visa applications, claiming that they had not previously resided in the United States or been issued Social Security numbers.
An investigation by Immigration and Customs Enforcement determined that between 1995 and 2003, the defendants illegally resided in Oklahoma, Georgia, Florida, and New York, prior to filling out their visa applications in 2003 and were issued Social Security numbers in 1996. In fact, the defendants purchased the Orchard Park Inn in 2001, prior to their visa applications. As a result of their pleas, both defendants are subject to possible removal proceedings by the Department of Homeland Security.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.One Year After Launching Key Sentencing Reforms, Attorney General Holder Announces First Drop in Federal Prison Population in More Than Three DecadesRead the Press Release
In a speech at the Brennan Center for Justice, Attorney General Eric Holder announced today that the federal prison population has dropped by roughly 4,800 inmates since September 2013. This represents the first time the federal inmate population has fallen, rather than risen, over the course of a fiscal year since 1980.
Moreover, Attorney General Holder announced that current Bureau of Prisons estimates project this downward trend to continue in each of the next two fiscal years. In FY15, the inmate population is projected to drop by another 2,200 inmates. In FY16, the population is projected to drop by 10,000 inmates - or the equivalent of six federal prisons.
“This is nothing less than historic,” said Attorney General Holder. “Clearly, criminal justice reform is an idea whose time has come. And thanks to a robust and growing national consensus – a consensus driven not by political ideology, but by the promising work that’s underway – we are bringing about a paradigm shift, and witnessing a historic sea change, in the way our nation approaches these issues.”
While these statistics show progress at the federal level, there is similar progress at the state level. Overall, incarceration rates have fallen by roughly 10 percent since President Obama took office, and that has occurred simultaneously with a similarly-sized reduction in crime rates.
The Attorney General’s full remarks to the law enforcement conference, as prepared for delivery appear below:
Thank you, Jim [Johnson], for those kind words; for your friendship over the many years we’ve known one another – since we served together in the Clinton Administration; and for your leadership, along with Doug Jones, as co-chair of the Brennan Center’s Blue Ribbon Panel.
I’d also like to thank the Brennan Center’s distinguished president, my friend Michael Waldman, and your entire staff – particularly the Justice Program – for bringing us together today. It’s an honor to take part in this important conference. It’s a privilege to be at NYU Law School for the second time in as many weeks. And it’s a great pleasure, as always, to be back home in New York City.
For nearly two decades, the Brennan Center has provided indispensable leadership on issues ranging from campaign finance and voting rights to national security and equal justice. You’ve offered rigorous research and expert guidance to policymakers at every level of government. And with this conference – and the report you’re unveiling today – you’re taking yet another step to advance our efforts to address some of our nation’s most critical challenges – few of which are more complex, or more urgent, than the need to strengthen America’s criminal justice system and reduce our overreliance on incarceration.
As you know, we gather this afternoon just over a year after the launch of the Justice Department’s Smart on Crime initiative – a series of important changes and commonsense reforms I set in motion last August. Already, these changes are fundamentally shifting our response to certain crime challenges – particularly low-level, nonviolent drug offenses. And this initiative is predicated on the notion that our work as prosecutors must be informed, and our criminal justice system continually improved, by the most effective and efficient strategies available.
After all – as I’ve often said – the United States will never be able to prosecute or incarcerate its way to becoming a safer nation. We must never, and we will never, stop being vigilant against crime – and the conditions and choices that breed it. But, for far too long – under well-intentioned policies designed to be “tough” on criminals – our system has perpetuated a destructive cycle of poverty, criminality, and incarceration that has trapped countless people and weakened entire communities – particularly communities of color.
In recent decades, the effects of these policies – and the impact of the “truth-in-sentencing” mindset – have been dramatic. Although the United States comprises just five percent of the world’s population, we incarcerate almost a quarter of its prisoners. The entire United States population has increased by about a third since 1980. But the federal prison population has grown by almost 800 percent over the same period. Spending on corrections, incarceration, and law enforcement has exploded, consuming $260 billion per year nationwide. And the Bureau of Prisons currently commands about a third of the Justice Department’s overall budget.
Perhaps most troubling is the fact that this astonishing rise in incarceration – and the escalating costs it has imposed on our country, in terms both economic and human – have not measurably benefited our society. We can all be proud of the progress that’s been made at reducing the crime rate over the past two decades – thanks to the tireless work of prosecutors and the bravery of law enforcement officials across America. But statistics have shown – and all of us have seen – that high incarceration rates and longer-than-necessary prison terms have not played a significant role in materially improving public safety, reducing crime, or strengthening communities.
In fact, the opposite is often true. Two weeks ago, the Washington Post reported that new analysis of crime data and incarceration rates – performed by the Pew Charitable Trusts, and covering the period of 1994 to 2012 – shows that states with the most significant drops in crime also saw reductions in their prison populations. States that took drastic steps to reduce their prison populations – in many cases by percentages well into the double digits – saw crime go down as well. And the one state – West Virginia – with the greatest increase in its incarceration rate actually experienced an uptick in crime.
As the Post makes clear: “To the extent that there is any trend here, it’s actually that states incarcerating people have seen smaller decreases in crime.” And this has been borne out at the national level, as well.
Since President Obama took office, both overall crime and overall incarceration have decreased by approximately 10 percent. This is the first time these two critical markers have declined together in more than 40 years. And although we have a great deal of work to do – and although, last year, some states continued to record growth in their prison populations – this is a signal achievement.
We know that over-incarceration crushes opportunity. We know it prevents people, and entire communities, from getting on the right track. And we’ve seen that – as more and more government leaders have gradually come to recognize – at a fundamental level, it challenges our commitment to the cause of justice.
Fortunately, I can report today that we are finally moving in the right direction, at least at the federal level. Over the past year, the federal prison population declined by roughly 4,800 inmates – the first decrease we’ve seen in many decades.
Even more promising are new internal projections from the Bureau of Prisons. In a dramatic reversal of prior reports – which showed that the prison population would continue to grow, becoming more and more costly, overcrowded, and unsafe – taking into account our new policies and trends, our new projections anticipate that the number of federal inmates will fall by just over 2,000 in the next 12 months – and by almost 10,000 in the year after.
This is nothing less than historic. To put these numbers in perspective, 10,000 inmates is the rough equivalent of the combined populations of six federal prisons, each filled to capacity. Now, these projected decreases won’t result in any prison closures, because our system is operating at about 30 percent above capacity. But my hope is that we’re witnessing the start of a trend that will only accelerate as our Smart on Crime changes take full effect.
Clearly, criminal justice reform is an idea whose time has come. And thanks to a robust and growing national consensus – a consensus driven not by political ideology, but by the promising work that’s underway, and the efforts of leaders like Senators Patrick Leahy, Dick Durbin, Mike Lee, and Rand Paul – we are bringing about a paradigm shift, and witnessing a historic sea change, in the way our nation approaches these issues.
Of course, for these changes to become permanent, we’ll need to rely on the dedication – and the leadership – of federal prosecutors in Washington and in all 94 of our United States Attorney’s Offices. As a career prosecutor myself – and as former U.S. Attorney for the District of Columbia – I have always had the utmost confidence in, and respect for, these hardworking men and women. And that’s why, as Attorney General, I’ve consistently advocated policies that push discretion out into the field.
The Smart on Crime initiative is in many ways the ultimate expression of my trust in the abilities – and the judgment – of our attorneys on the front lines. And although some have suggested that recent changes in charging and sentencing policies might somehow undermine their ability to induce cooperation from defendants in certain cases, today, I want to make it abundantly clear that nothing could be further from the truth.
As I know from experience – and as all veteran prosecutors and defense attorneys surely recognize – defendant cooperation depends on the certainty of swift and fair punishment, not on the length of a mandatory minimum sentence. Like anyone old enough to remember the era before sentencing guidelines existed and mandatory minimums took full effect, I can testify to the fact that federal guidelines attempted to systematize the kinds of negotiations that were naturally taking place anyway. As our U.S. Attorney for the Western District of Wisconsin, John Vaudreuil, often reminds his colleagues, even without the threat of mandatory minimums, it remains in the interests of all attorneys to serve as sound advocates for their clients – and for defendants to cooperate with the government in exchange for reduced sentences.
Far from impeding the work of our prosecutors, the sentencing reforms I’ve mandated have strengthened their discretion. The contention that cooperation is somehow dependent on mandatory minimums is tied to a past at tension with the empirical present, and is plainly inconsistent with history, and with now known facts. After all, as the Heritage Foundation observed earlier this year: “[t]he rate of cooperation in cases involving mandatory minimums is comparable to the average rate in all federal cases.”
Of course, as we refine our approach and reject the ineffective practice of calling for stringent sentences against those convicted of low-level, nonviolent crimes, we also need to refine the metrics we use to measure success; to evaluate the steps we’re taking; and to assess the effectiveness of new criminal justice priorities. In the Smart on Crime era, it’s no longer adequate – or appropriate – to rely on outdated models that prize only enforcement, as quantified by numbers of prosecutions, convictions, and lengthy sentences, rather than taking a holistic view.
As the Brennan Center and many others have recognized – and as your landmark report on Federal Prosecution for the 21st Century makes crystal clear – it’s time to shift away from old metrics and embrace a more contemporary, and more comprehensive, view of what constitutes success. This means developing a new system of assessment – because, as you’ve noted, what gets measured is what gets funded and what gets funded is what gets done. That’s why I want to commend this organization – and each of our Blue Ribbon Panelists, including some of our very best sitting and former U.S. Attorneys – for examining new ways for the Justice Department to leverage our resources to better serve America’s communities.
Your concrete recommendations – that federal prosecutors should prioritize reducing violence, incarceration, and recidivism – are consistent with the aims of the Smart on Crime initiative. The new metrics you propose – such as evaluating progress by assessing changes in local violent crime rates, numbers of federal prisoners initially found in particular districts, and changes in the three-year recidivism rate – lay out a promising roadmap for us to consider. And my pledge to you today is that my colleagues and I will not merely carefully study this critical report – we will use it as a basis for discussion, and a vital resource to draw upon, as we engage in a far-reaching process to develop and codify new success measures – with the aim of cementing recent shifts in law and policy.
One of the key points underscored by your report – and emphasized under the Smart on Crime approach – is the need for the Justice Department to direct funding to help move the criminal justice field toward a fuller embrace of science and data. This is something that we – and especially our Office of Justice Programs and Bureau of Justice Assistance – have taken very seriously throughout the Obama Administration. And nowhere are these ideals more fully embodied – or more promisingly realized – than in our Justice Reinvestment Act and Second Chance Act programs.
As we speak, the states that participate in Justice Reinvestment are making fundamental policy reforms that aim to reduce unnecessary confinement, save taxpayer dollars, and reinvest funding in strategies proven to enhance community safety. A report issued in January highlighted 17 states that are projected to save $4.6 billion over 10 years. Another study, in June, highlighted seven states that have achieved substantial reductions in three-year recidivism rates. And these successes are notable not only for their magnitude, but for the political consensus that drove them.
Thanks to bipartisan support from Congress, funding for the Justice Reinvestment Initiative has more than quadrupled this year. That, on its own, is an extraordinary indication of the power and importance of this work. And this additional funding is allowing us to launch a new challenge grant program – designed to incentivize states to take the next major step in their reform efforts.
Today, I am pleased to announce that five states – Delaware, Georgia, Louisiana, Ohio, and Oregon – will be receiving these grants, which can be used to expand pre-trial reforms, to scale up swift and certain sanctions, to institute evidence-based parole practices, or a number of other options. I am also pleased to announce that five states have been selected to receive new funding under the Second Chance Act to help reduce recidivism. Georgia, Illinois, Iowa, Minnesota, and Vermont will each be awarded $1 million to meet their recidivism reduction goals. And each will be eligible for an additional $2 million over the next two years if they do so.
In addition to these and other Second Chance awards, our Office of Juvenile Justice and Delinquency Prevention is providing $7 million in Second Chance Act funding to support reentry demonstration programs and other important efforts at the juvenile level. A further $1.8 million will support a new Juvenile Reentry Legal Assistance Program through our partners at the Department of Housing and Urban Development. And we’ll soon be launching a broader partnership with HUD – a partnership rooted in the Pay for Success model championed by the Brennan Center – to focus on finding permanent supportive housing for those returning from incarceration.
The Justice Department has transferred $5 million to HUD for this program, which will announce the competition in the coming months. Together, these exciting efforts reaffirm our commitment to strengthening America’s justice system at every level. They underscore our determination to help people get back on the right path. But they’re only the beginning – because, beyond our Smart on Crime reforms and our emphasis on evidence-based practices, I believe the federal government has an even broader and more critical role to play in securing the fundamental promise of equal justice under law.
As we saw all too clearly last month – as the eyes of the nation turned to events in Ferguson, Missouri – whenever discord, mistrust, and roiling tensions fester just under the surface, interactions between law enforcement and local residents can quickly escalate into confrontation, unrest, and even violence. These tensions simmer every day in far too many communities across the country. And it’s incumbent upon all of America’s law enforcement officers and leaders to work with the communities they serve to defuse these charged situations by forging close bonds, establishing deep trust, and fostering robust engagement.
The situation in Ferguson has presented leaders across the nation, and criminal justice and civil rights leaders in particular, with a moment of decision – and a series of important questions that can no longer be avoided. Will we allow this time – our time – to be defined by division and discord? Or will we summon the resolve, the fortitude, and the vision to reassess – and even to remake – our system, through cooperation, consensus, and compassion?
Will we again turn a blind eye to the hard truths that Ferguson exposed, burying these tough realities until another tragedy arises to set them off like a powder keg? Or will we finally accept this mandate for open and honest dialogue, reach for new and innovative solutions, and rise to the historic challenge – and the critical opportunity – now right before us?
These questions are not rhetorical. And as we seek to address them, we must take into account the preconceived notions that certain people may bring to interactions with police – preconceptions that may be informed by generations of experience; by the totality of what it has meant to be a person of color in the United States. We must consider corresponding notions that police may bring to interactions with certain communities and individuals. And we must never lose sight of the immense and unyielding difficulties inherent in the law enforcement profession – from the training they receive to the risks these brave men and women incur every time they put on their uniforms; from the dangers they face, and the split-second decisions they often must make, to the anguish of family members who awaken at night to the sound of a ringing telephone – hoping for the best, but fearing tragic news about a loved one out walking the beat.
As the brother of a retired law enforcement officer, I understand well how challenging – and how thankless – their vital work can be. As our nation’s Attorney General, I will always be proud – and steadfast – in my support for law enforcement personnel and their families, who make tremendous and often unheralded sacrifices every single day to keep us safe. And as an African-American man – who has been stopped and searched by police in situations where such action was not warranted – I also carry with me an understanding of the mistrust that some citizens harbor for those who wear the badge.
So today, it’s time to ask ourselves – as a nation – are we conducting policing, in the 21st century, in a manner that is as effective, as efficient, as equitable, and as just as is possible? It’s time to build on the outstanding leadership that so many local police are providing – and the reform efforts that are underway in St. Louis County and elsewhere – by making this work a focused, national priority.
Just last week, the Justice Department launched a substantial effort to do just that – by establishing a National Initiative for Building Community Trust and Justice to promote credibility, to enhance procedural justice, to reduce implicit bias, and to support racial reconciliation. Separately, President Obama has directed federal agencies to carefully review programs that may provide military equipment, or funding for military equipment, to local police – a process that remains ongoing. Through a range of other programs like the President’s My Brother’s Keeper initiative – and the department’s regular interactions with exemplary law enforcement executives across the country – my colleagues and I are doing important work to resolve tensions and promote mutual understanding; to bridge divides and spark constructive dialogue; and to ensure – above all else – that everyone who comes into contact with the police is treated fairly.
This is important, and in some cases life-changing, work. But I believe we need to take these efforts even further. That’s why, under the leadership of our COPS Office, the Justice Department is working with major police associations to conduct a broad review of policing tactics, techniques, and training – so we can help the field swiftly confront emerging threats, better address persistent challenges, and thoroughly examine the latest tools and technologies to enhance the safety, and the effectiveness, of law enforcement. Going forward, I will support not only continuing this timely review, but expanding it – to consider the profession in a comprehensive way – and to provide strong, national direction on a scale not seen since President Lyndon Johnson’s Commission on Law Enforcement nearly half a century ago.
In this ongoing effort, and in so many others – as we seize this important moment, renew our determination to combat crime, and accept the historic opportunities now before us – my colleagues and I will continue to look to the Brennan Center, and each of the leaders in this audience, for guidance; for edification; and for frank and honest advice. We will continue to rely on the experience, and the thoughtful consideration, that you have brought to today’s discussion – and to countless others over the past two decades. And we will always be both proud and humbled to count you as partners, and as essential allies, in the considerable work ahead.
I want to thank you all – once again – for your leadership, your vision, and your unwavering commitment to the mission we share. I look forward to building on this dialogue in the weeks and months to come. And I am optimistic – despite the challenges we face, and the obstacles we must confront – about where your efforts will take us, and all that we will achieve – together – for the exceptional nation we all love.
Thank you.
Northeastern Pennsylvania Man Pleads Guilty to $1.8 Million Investment FraudRead the Press Release
A former Bartonsville man has pleaded guilty in federal court to a charge stemming from an investment fraud, United States Attorney for the Middle District of Pennsylvania Peter J. Smith announced Tuesday.
Joseph Gallardo, 48, Bartonsville, pleaded guilty to mail fraud before Senior U.S. District Court Judge Sylvia H. Rambo on Tuesday. According to documents filed with the Court, Gallardo was a registered investment advisor with investment firms in New Jersey and Pennsylvania. He persuaded clients with those investment firms to invest in Blue Meadow Group LLL, his personal real estate venture. Victims were guaranteed attractive rates of return and were falsely told that their money was invested in and protected by real estate. Contrary to what was represented to the victims, Blue Meadow Group was not a real estate investment trust and its securities were not registered with the Pennsylvania and New Jersey Securities Commissions.
In fact, victims’ monies were used to purchase a gas station and convenience store and to fund Gallardo’s on-line day trading account that lost a substantial amount of money.
During July 2009, the Pennsylvania Securities Commission issued a cease and desist order ordering Gallardo to stop offering or selling investment properties in Pennsylvania. After the cease and desist order, Gallardo solicited additional victims who invested money with him.
Investigators have determined that victims of Gallardo’s criminal activity lost approximately $1.8 million.
The case was investigated by the United States Postal Inspection Service. It is assigned to Assistant U.S. Attorney Christy H. Fawcett.
New Jersey Transit Employee Admits Extorting Money from VendorsRead the Press Release
NEWARK, N.J. – A New Jersey Transit employee admitted today to obtaining money from New Jersey Transit vendors to use his official authority and influence to help them get work with New Jersey Transit, U.S. Attorney Paul J. Fishman announced.
William Talerico, 55, of Beachwood, New Jersey, pleaded guilty to an information charging one count of affecting commerce by extortion under color of official right. Talerico entered his guilty plea before U.S. District Judge William H. Walls in Newark federal court.
According to documents in this case and statements made in court:
From at least around January 2006 to April 2012, Talerico served as a supervisor of stations responsible for overseeing the maintenance and custodial functions for certain New Jersey Transit facilities, including stations on New Jersey Transit’s North Jersey Coast Line and Northeast Corridor.
During this time period, Talerico agreed to accept and accepted corrupt payments in cash from numerous New Jersey Transit vendors. In exchange, Talerico agreed to, and did, exercise official authority and influence to assist the New Jersey Transit vendors with securing work from New Jersey Transit. In addition, Talerico acted as an intermediary through which corrupt payments were given to a New Jersey Transit supervisor. Talerico received more than $70,000, for himself and the supervisor, in corrupt payments of cash and other items of value from these New Jersey Transit vendors.
The extortion charge to which Talerico pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Talerico is scheduled to be sentenced on Jan. 6, 2015.
U.S. Attorney Fishman thanked the New Jersey Attorney General’s Office, under the direction of Acting Attorney General John Hoffman and Elie Honig, Director of the New Jersey Division of Criminal Justice, for their work in this investigation.
U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Aaron T. Ford; and the New Jersey State Police, under the direction of Colonel Joseph R. Fuentes, Superintendent of the New Jersey State Police, for their work in the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Amy Luria and Maureen Nakly of the U.S. Attorney’s Office Special Prosecutions Division in Newark, and Special Assistant U.S. Attorney Michael A. Monahan, the Chief of the Financial and Computer Crimes Bureau, Division of Criminal Justice, in the New Jersey Attorney General’s Office.
14-339
Defense counsel: Peter R. Willis Esq., Jersey City, New Jersey
Talerico, William Information
Nevada Sex Offender Sentenced to 15 Years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., man who is a registered sex offender was sentenced in federal court today for receiving and distributing child pornography over the Internet.
David Lee Knowles, 56, of Nevada, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. The court also ordered Knowles to forfeit to the government an iPad2, a desktop computer, an iPhone and an external hard drive, all of which were used to commit the offense.
Knowles, a registered sex offender as a result of his 1997 conviction for sexual assault, pleaded guilty on April 1, 2014. Knowles admitted that he received and distributed child pornography between May 31, 2012, and Jan. 3, 2013.
A law enforcement officer was conducting an undercover investigation into the distribution of child pornography with peer-to-peer, file-sharing networks. Knowles’s computer was identified as sharing videos of child pornography over the Internet.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Joplin, Mo., Police Department.
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."Neenah Man Sentenced to Federal PrisonRead the Press Release
United States Attorney James L. Santelle, of the Eastern District of Wisconsin, announced that on September 22, 2014, Charles Kniebes-Larsen (age: 34) of Neenah, Wisconsin, was sentenced to 36 months in federal prison by Chief United States District Judge William C. Griesbach. Kniebes-Larsen previously entered a guilty plea to a single-count indictment charging him with being a felon in possession of a firearm.
The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group and the Town of Menasha Police Department. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
Montgomery County Woman Sentenced for Conspiring to Commit Four Armed RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Marvel Alegria, age 24, of Gaithersburg, Maryland, today to 57 months in prison followed by three years of supervised release for conspiring to commit armed robbery in connection with four robberies of Chipotle restaurants. Judge Bennett also ordered Alegria to pay restitution of $24,900.
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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; Chief J. Thomas Manger of the Montgomery County Police Department; Carroll County State’s Attorney Jerry Barnes; Washington County State’s Attorney Charles P. Strong; and Montgomery County State’s Attorney John McCarthy.According to her plea agreement, Alegria was a general manager at the Chipotle restaurant in Mt. Airy, Maryland until July 17, 2012 when she was fired for violating company policies. She became upset about her termination, and began discussing robbing the Chipotle restaurant with co-defendant Lamont Bonds, with whom she was having a relationship. Alegria advised Bonds of the best time to commit the robbery, and how to access the store and its safe which contained money.
On July 22, 2012, Bonds and Alegria recruited co-defendant Norman Guifarro to participate in the robbery. That evening, Bonds and Guifarro entered the restaurant wearing masks Bonds had made from tee shirts. Bonds, armed with a shotgun, forced the manager into the office at gunpoint and obtained the money from the safe, while Guifarro, armed with a knife, held the other employees on the floor. Bonds and Guifarro stole $5,000 in cash and fled after forcing the employees into a bathroom. Bonds and Guifarro divided the stolen money among themselves and Alegria.
On August 4, October 21 and November 25, 2012, Bonds, armed with what appeared to be a black semi-automatic pistol, robbed Chipotle restaurants in Hagerstown, Gaithersburg and Damascus, Maryland, respectively, using similar methods as in the first robbery. In the August 4th robbery, Bonds and another man stole $9,400 from the safe. Alegria drove Bonds to and from the Gaithersburg and Damascus robberies where Bonds stole $7,000 and $3,500, respectively. In each robbery, Bonds forced the manager to open the safe at gunpoint.
Lamont Bonds, age 26, of Gaithersburg, Maryland, previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on November 24, 2014 at 11:00 a.m. Norman Guifarro was convicted in Carroll County Circuit Court of the Mt. Airy robbery and was sentenced to seven years in prison.
United States Attorney Rod J. Rosenstein commended the ATF, Maryland State Police, Montgomery County Police Department, Washington County Sheriff’s Office and the Montgomery, Washington and Carroll County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who prosecuted the case.
Methamphetamine and Cocaine Dealer Sentenced to 240 Months in Federal PrisonRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Gregorio Figueroa-Ochoa, age 45, of Outlook, Washington, was sentenced today after being convicted of conspiracy to possess with intent to distribute methamphetamine and cocaine. United States District Court Judge Thomas O. Rice sentenced Figueroa-Ochoa to a 240 month term of imprisonment, to be followed by a five year term of court supervision following release from Federal prison.
Law enforcement agents executed search warrants at several residences affiliated with Figueroa-Ochoa on August 15, 2013. That day agents seized over 25 pounds of methamphetamine, over 10 pounds of heroin, and several firearms. Defendant pled guilty on June 11, 2014 to conspiracy to possess with intent to distribute methamphetamine and cocaine.
Michael C. Ormsby said, “This case involved drug trafficking at the highest levels in the Eastern District of Washington, as reflected by the amount of drugs and firearms seized and by the sentence meted out by the judge. This case is yet another example of the cooperative investigative efforts among state and federal law enforcement law enforcement agencies in the Eastern District of Washington.”
This investigation was conducted by the Drug Enforcement Administration, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Yakima County Sheriff’s Office. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Meridian Man Sentenced for Possession of DrugsRead the Press Release
Hattiesburg, Miss – Joseph Brown, 38, of Meridian, Mississippi, was sentenced by U.S. District Judge Keith Starrett to 78 months in federal prison followed by five years of supervised release for possession of narcotics, United States Attorney Gregory K. Davis announced today. Brown was also ordered to pay a $10,000 fine and forfeit a Norinco 7.62.39mm SKS rifle.
The case was investigated by the Lamar County Sheriff’s 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.
Medina Man Faces Heroin ChargesRead the Press Release
A Medina mas was indicted for possession with intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Curtis DeBose, 34, possessed the heroin on August 7, 2014, according to the indictment.
Debose was arrested by members of the Medina County Drug Task Force and Drug Enforcement Administration on a criminal complaint after an nvestigation.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Medina County Drug Task Force, Medina Police Department and the Drug Enforcement Administration. The matter is being prosecuted by Assistant United States Attorney Teresa Riley.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Maryville Woman Charged in Murder-for-hire SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today a Maryville, Mo., woman has been charged in federal court in a murder-for-hire scheme in which she negotiated with an undercover federal agent and, without realizing it, her intended victim.
Kristina M. Swinford, 32, of Maryville, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Monday, Sept. 22, 2014. Swinford was arrested on Friday, Sept. 19, 2014, and remains in federal custody pending a detention hearing on Thursday, Sept. 25, 2014.
The federal criminal complaint charges Swinford with contacting two individuals to kill the wife of her ex-boyfriend. Her intended victim is identified in court documents as “AM.”
According to an affidavit filed in support of the criminal complaint, Swinford met three times with an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives to negotiate the murder-for-hire. Following her third meeting with the ATF agent, the affidavit says, Swinford also negotiated via Facebook with another person, without realizing that she was actually communicating with her intended victim, who had created an online profile under another person’s name.
On Aug. 25, 2014, a cooperating source in Taylor County, Iowa, reported to law enforcement authorities about traveling to Maryville and having a discussion with Swinford. According to the affidavit, Swinford complained about AM and made it clear she wanted AM kidnapped, killed or gone. AM had gone through a brief separation from her husband, the affidavit says, and during that time he was involved in a relationship with Swinford. AM and her husband had been granted ex parte orders of protection in an effort to keep Swinford from stalking or harassing them.
The cooperating source was instructed to meet with Swinford again and provide her with the contact information of an undercover ATF agent if she still wanted someone to kill AM. The undercover agent contacted Swinford on Aug. 28, 2014, and arranged to meet.
Swinford allegedly met with the undercover agent on three separate occasions, each time sitting in a vehicle in a Wal-Mart parking lot in Bethany, Mo., and discussed several scenarios for killing AM. Swinford allegedly agreed to pay $10,000 prior to AM being killed and another $10,000 afterward. She provided the undercover agent with a photo of AM, a map of her house and other information, the affidavit says. Swinford allegedly paid the undercover agent $150 for his expenses. At the third meeting on Sept. 10, 2014, the affidavit says, the undercover agent told Swinford he could pick up AM after she dropped her kids off at school, then kill her and cut off her hands and head and toss them into the river to make it look like Mexican drug dealers. Swinford allegedly agreed with this plan and the undercover agent told her to get a hold of him when she got the money.
On Sept. 19, 2014, AM reported to local law enforcement authorities that Swinford had been discussing AM’s murder on Facebook. According to the affidavit, AM had created a false Facebook account for a real person she knows, who is identified in the affidavit as WB. AM told authorities she created the account because her husband had blocked his Facebook account so she could not view her husband’s Facebook page.
AM reported that on Sept. 18, 2014, she had logged in to delete the fake account but found a message from Swinford from Aug. 9, 2014, addressed to whom Swinford clearly thought was the real WB. AM used the false Facebook account to engage Swinford in a lengthy conversation. During the conversation, the affidavit says, Swinford expressed her dislike for AM. According to AM, further in the conversation, she and Swinford discussed WB (the real person but fake Facebook account) harming her (AM).
AM told police that she was terrified and had no way of knowing if Swinford had spoken to anyone else about having her hurt or murdered. ATF agents had not notified AM or her husband that ATF had been conducting the investigation into Swinford hiring the undercover agent.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Alison Dunning. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Maryville, Mo., Department of Public Safety.
Marysville Man Sentenced to over 14 Years in Prison and Tehama Man Pleads GuiltyRead the Press Release
SACRAMENTO, Calif. — John Franklin Bye, 45, of Marysville, was sentenced Tuesday by United States District Judge John A. Mendez to 14 years and seven months in prison for distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2013, the Nevada County Sheriff’s Office received a tip from the National Center for Missing and Exploited Children (NCMEC) that Bye had been trading images of child pornography through email. Law enforcement obtained a state search warrant for the contents of Bye’s emails and found multiple attachments of minors engaged in sexually explicit conduct.
This case was the product of an investigation by the FBI and 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.
Tehama Man Pleads Guilty
Robert Anthony Bonnot, 54, of Gerber, pleaded guilty Tuesday to production of child pornography. According to court documents, in 2010, on at least six separate occasions, Bonnot produced child pornography of a minor child and broadcast it through his web camera to New Zealand. In January 2011, New Zealand officials notified the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) that videos of Bonnot’s activities had been discovered. A forensic examination of his computer identified 426 images and five videos of child pornography. An additional 172 images of child pornography were found on a CD created by Bonnot.
Bonnot has been in custody in the Sacramento County Jail since March 2011. He is scheduled to be sentenced by United States District Judge John A. Mendez on January 20, 2015. Bonnot faces a statutory penalty of 15 to 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Kyle Reardon prosecuted both cases.
These cases were 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.
Luzerne County Man Sentenced to Prison for Drug Delivery Resulting in DeathRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a West Pittston man was sentenced yesterday in Scranton by U.S. District Court Judge Malachy E. Mannion to 135 months in federal prison for his role in a drug distribution conspiracy.
According to United States Attorney Peter Smith, Todd Morgans, age 35, pled guilty to conspiring with others between December 2012 and July 2013 to distribute alpha-pyrrolidinopentiophenone (A-PVP), an analogue of methylenedioxypyrovalerone (MDPV). A-PVP is a synthetic cathinone which is included in a family of abused drugs commonly known as “bath salts.”
"HSI will use all resources at its disposal to prevent the importation and distribution of dangerous chemical substances that cause harm to our local communities. Yesterday's sentencing represents the effort of law enforcement agencies working together to make our neighborhoods safer” said U.S. Immigration and Customs (ICE) Homeland Security Investigations (HSI) Philadelphia Special Agent in Charge John Kelleghan.
A controlled substance analogue is a drug which has not been scheduled under The Controlled Substances Act but has a similar chemical structure and a similar stimulant or hallucinogenic effect on a person’s central nervous system. Such controlled substance analogues are treated as if the substance were the scheduled drug for prosecution and sentencing purposes.
The U.S. Attorney’s Office noted that the sentence included an enhancement applicable when the death or serious bodily injury of another results from the use of the controlled substance. While the investigation surrounding the death of Jason Folweiler remains ongoing, Morgans, in his plea agreement with the government, publicly acknowledged that he delivered drugs to Folweiler and apologized to his family.
Morgans also forfeited an automobile, the contents of his bank account, $40,000 in currency seized from his home and a silver bar.
This investigation was conducted by the U.S. Immigration and Customs (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police and the West Pittston Police Department and is being prosecuted by Assistant United States Attorney Amy C. Phillips.
Louisville Man Charge for Child Pornography ViolationsRead the Press Release
Ian A. Leach, 26, of Louisville, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about May 27, 2014, through on or about July 13, 2014, Leach knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct.
The indictment also charges that on September 4, 2014, Leach possessed a computer that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton Office of the Federal Bureau of Investigation and the Canton Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.