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29 October 2014
Pocatello Man Indicted on Assault with A Dangerous Weapon and Using A Firearm in the Commission of A Violent CrimeRead the Press Release
Defendant Under the Influence of a Controlled Substance While Illegally Possessing a Firearm
POCATELLO - Raymond Hye Broncho, 39, of Fort Hall, Idaho, was indicted yesterday by the federal grand jury on two counts of assault on an officer, three counts of assault with a dangerous weapon, two counts of illegal possession of a firearm by a drug user, one count of using firearms in the commission of violent crimes, and forfeiture of the SKS assault rifle and the .22 caliber rifle involved in these crimes, U.S. Attorney Wendy J. Olson announced. An arraignment date has not been set.
According to the indictment, on September 20, 2014, Broncho pointed a rifle and fired multiple shots at officers who were responding to a report on the Fort Hall Indian Reservation. At the time of the assault, Broncho was under the influence of a controlled substance.
Assault on an officer is punishable by up to twenty years imprisonment. Assault with a dangerous weapon and unlawful possession of a firearm by a drug user are punishable by up to ten years imprisonment. The three crimes are also punishable by a $250,000 fine and three years of supervised release. Use of firearms in the commission of a violent crime is punishable by a ten year sentence, consecutive to all other sentences.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Physician and Others Sentenced in “Pill Mill” CaseRead the Press Release
DALLAS — A physician who ran a “cash only clinic” in Dallas that operated not as a legitimate medical facility, but as a place to unlawfully obtain controlled substances, and several coconspirators who operated as “dealers,” were sentenced this afternoon, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Nicolas Alfonso Padron, 55, of Garland, Texas, was sentenced by U.S. District Judge Barbara M. G. Lynn to 87 months in federal prison. He pleaded guilty in September 2013 to one count of conspiracy to unlawfully distribute a Schedule III controlled substance. Judge Lynn also ordered forfeiture on his house, two cars, a boat, and several bank accounts.
Dr. Padron and co-defendant Jose L. Martinez, 54, of Flower Mound, Texas, opened Padron Wellness Clinic (PWC), located at 1000 Emerald Isle Drive in Dallas in Fall 2010. PWC operated as a “pill mill,” or place to unlawfully obtain controlled substances, such as hydrocodone. Martinez was convicted at trial in February 2014 on one count of conspiracy to unlawfully distribute controlled substances and is awaiting sentencing. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and restitution.
Today, other defendants who were convicted for their roles in the conspiracy were also sentenced:
Josephis Austin, 60, of Dallas was sentenced to 84 months;
Patricia A. Bryant, 60, of Dallas, was sentenced to 54 months;
Dennis J. Wade, 36, of Dallas, was sentenced to 21 months.
Austin and Bryant were each convicted at trial in February 2014 on one count of conspiracy to distribute controlled substances unlawfully. Wade and Allen C. Burkins, Jr., 43, of Dallas, each pleaded guilty earlier this year to the same offense. Burkins is scheduled to be sentenced on December 19, 2014.
All four were “dealers” who would recruit “patients,” often from homeless shelters, and drive them in groups to PWC. The dealers would typically escort the patients into the clinic, coordinate with Martinez, and pay cash for the office visits. Sometimes, Dr. Padron would see two or more patients at a time in the examination room. Patient visits were short and patients would normally leave with a 30-day prescription of 120 units (pills) of hydrocodone and 30-90 units of alprazolam. Dr. Padron diagnosed the majority of his patients with lower back pain and anxiety without regard to their true condition. For most of these patients, Dr. Padron did not prescribe or treat these “symptoms” with anything other than hydrocodone and alprazolam. Thus, the prescriptions were medically unnecessary and outside the scope of professional practice.
Once Dr. Padron issued the prescriptions, the coconspirator dealers would drive groups of patients to Urban Independent Pharmacy, located at 6300 Samuell Blvd., in Dallas, to get the prescriptions filled. Convicted co-conspirator and licensed pharmacist, Lisa Hollier, 44, of Sunnyvale, Texas, owned and operated that pharmacy. She was convicted at trial earlier this year on one count of conspiracy to distribute, unlawfully, a controlled substance and was sentenced in July 2014 to 60 months in federal prison.
At Urban Independent Pharmacy, Hollier had large amounts of hydrocodone and alprazolam in pre-filled bottles ready each day to handle the large group of dealers and their patients from PWC and other clinics. Dealers would furnish the money to pay for the narcotics, and at times, they paid Hollier directly for multiple patients’ prescriptions. After Hollier filled the prescriptions, the patients would give the dealers the pills, which they sold on the street for a profit.
Dr. Padron is currently serving a 57-month federal prison sentence following his guilty plea in September 2013, in a separate and unrelated case, to conspiracy to commit health care fraud. That conviction stems from his role as the medical director of A Medical House Calls, a physician house-call company that provided physician visits to Medicare beneficiaries in their homes, rather than in a doctor’s office. Dr. Padron was also ordered to pay nearly $9.5 million in restitution to the Centers for Medicare and Medicaid Services (CMS). Today’s sentence will run consecutive to that sentence, for a total sentence of 144 months in federal prison.
A total of 17 defendants have been convicted in this “pill mill” case. With today’s sentencings, all but two defendants, Martinez and Burkins, remain to be sentenced. A total of 14 “dealers” were convicted in the case.
The Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit, investigated. Assistant U.S. Attorneys Kate Pfeifle and J. Nicholas Bunch prosecuted and Assistant U.S. Attorney John de la Garza is handling the forfeiture.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS’s CMS, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT Strike Force, see: www.stopmedicarefraud.gov
Pharmacist Pleads Guilty to Stealing Approximately 67,000 Doses of Prescription NarcoticsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of ANISSA JEANNE SHORES, 37, to one count of Obtaining a Controlled Substance by Fraud. SHORES was charged by criminal information on October 16, 2014, for Obtaining a Controlled Substance by Fraud. She pleaded guilty on October 28, 2014, before United States District Court Judge David S. Doty.
“Pharmacist Anissa Jeanne Shores abused her position as a trusted member of the medical community by diverting significant quantities of opioid based prescription drugs,” said Dan Moren, Assistant Special Agent in Charge of the Drug Enforcement Administration. “In order to combat the threat of opioid prescription drug addiction, which has been linked to heroin abuse, it is vital that the medical industry and the state licensing boards continue to work diligently with DEA and its federal, state, and local law enforcement partners in deterring, detecting, and investigating those individuals and groups responsible for diverting prescription drugs for non- medical purposes.”
“Prescription drug abuse is both a law enforcement and public health challenge,” said U.S. Attorney Luger. “Pharmaceutical drugs taken without a prescription or a doctor’s supervision can be just as dangerous as using illegal drugs like heroin. I am grateful to the DEA and our law enforcement partners for the ongoing and successful efforts to curb prescription drug abuse in Minnesota. Working together, we are reducing illegal access to these highly addictive and potentially deadly drugs.”
According to the charges and documents filed in court, SHORES was employed at a pharmacy in Burnsville, Minn., as a full-time pharmacist responsible for maintaining inventory records of controlled substances. The inventory procedures included accounting for the pharmacy’s receipt of controlled substances in written logbooks and/or computer logs. The purpose of the inventories is to track all controlled substances to ensure that they are lawfully dispensed by prescription and not illegally diverted.
Beginning no later than 2011, SHORES began stealing Hydrocodone, Oxycodone, Carisoprodol, and Diazepam, all controlled substances, as well as Tramadol, a non-controlled substance, from the pharmacy for her own personal use. According to her guilty plea and documents filed in court, SHORES stole approximately 67,000 dosages of controlled and non-controlled substances from the pharmacy.
According to her guilty plea, SHORES falsified the pharmacy’s written and computer logs, making it appear that the pharmacy received smaller quantities of the drugs than had actually been received. SHORES then stole the quantity of controlled substances that had been omitted from the logbooks for her own use and benefit.
This investigation was conducted by the DEA, Minneapolis/St. Paul District Office, Tactical Diversion Squad (TDS). The TDS is comprised of investigators from the DEA, FBI, FDA, Hennepin County Sheriff’s Office, Washington County Sheriff’s Office, Ramsey County Sheriff’s Office, Minneapolis Police Department, and the Plymouth Police Department.
This case is being prosecuted by Assistant United States Attorney David M. Genrich.
Defendant Information: ANISSA JEANNE SHORES, 37
Burnsville, Minn.
Convicted: • Obtaining a Controlled Substance by Fraud, 1 count###
Oregon Armed Career Criminal Receives 15-Year Prison TermRead the Press Release
EUGENE, Ore. – Richard Gene Stephens, 43, of Linn County, Oregon, appeared before United States District Court Chief Judge Ann Aiken in Eugene yesterday and was sentenced to 15 years in prison for being an armed career criminal and for possessing a revolver that had been stolen during a burglary of a home by another felon, Mitchell Wayne Brolin.
On May 13, 2013, Albany police officers arrested Stephens after seeing him in a stolen car. A subsequent search of the vehicle revealed an overnight bag containing Stephens’ identification documents, syringes, pawn shop receipts, and a stolen revolver. When arrested, Stephens was wanted for violating his Oregon parole.
On July 2, 2014, Stephens pled guilty to being a felon in possession of a stolen firearm. Chief Judge Aiken sentenced him as an armed career criminal because he possessed the stolen revolver after having been previously convicted of robbery, two burglaries and twice delivering methamphetamine. According to court documents, in the past 24 years, Stephens has been convicted of 18 felonies, including four convictions for being a felon in possession of a firearm, and more than 20 misdemeanors.
On September 9, 2014, Brolin pled guilty to being a felon in possession of a stolen firearm and is scheduled to be sentenced on December 16, 2014, before United States District Court Judge McShane.
Stephens’ guilty plea, admissions and sentence of 15 years were part of a global plea agreement with the United States Attorney’s Office and the Linn County District Attorney’s Office. This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms, and the Albany Police Department. The case was prosecuted by Assistant United States Attorney Frank R. Papagni, Jr. with the assistance of Deputy District Attorney Jonathan Crow.
November 2014 ElectionsRead the Press Release
Tampa, FL - United States Attorney A. Lee Bentley, III announced today that Assistant United States Attorney (AUSA) Robert Mosakowski will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014 general elections. AUSA Mosakowski has been appointed to serve as the District Election Officer (DEO) for the Middle District of Florida. In that capacity, he is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses, in consultation with Justice Department Headquarters in Washington.
United States Attorney Bentley said, “Every citizen should be free to vote without interference and to have his or her vote count, without the fear that it will be stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the electoral process.”
The Department of Justice plays an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact for the public to report possible violations on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. Such acts may include questioning, challenging, photographing, or videotaping voters at polling places, under the pretext of uncovering violations of federal voting rights laws. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Bentley stated that AUSA/DEO Bob Mosakowski will be on duty in this District while the polls are open. Public complaints may be reported to him at (813) 274-6129.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. Local FBI field offices can be reached by the public at either 1-866-838-1153 (Tampa Division) or (904) 248-7000 (Jacksonville Division). Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section, in Washington, by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form.
“Ensuring free and fair elections depends, in large part, on the cooperation of the American public,” said U.S. Attorney Bentley. “It is imperative that anyone with specific information about discrimination or election fraud immediately contact my Office, the FBI, or the Civil Rights Division.”
North Florida Shipyards to Pay $1 Million to Resolve False Claims AllegationsRead the Press Release
North Florida Shipyards and its president, Matt Self, will pay the United States $1 million to resolve allegations that they violated the False Claims Act by creating a front company, Ind-Mar Services Inc., in order to be awarded Coast Guard contracts that were designated for Service Disabled Veteran Owned Small Businesses (SDVOSBs), the Justice Department announced today. North Florida Shipyards has facilities in Jacksonville, Florida.
“Those who expect to do business with the government must do so fairly and honestly,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We will not tolerate contractors who seek to profit at the expense of our veterans and taxpayers.”
To qualify as a SDVOSB on Coast Guard ship repair contracts, a company must be operated and managed by service disabled veterans and must perform at least 51 percent of the labor. The government alleged that North Florida created Ind-Mar merely as a contracting vehicle and that North Florida performed all the work and received all the profits. The government further alleged that if the Coast Guard and the Small Business Administration (SBA) had known that Ind-Mar was nothing but a front company, the Coast Guard would not have awarded it contracts to repair five ships.
In December 2013, the SBA suspended North Florida, Matt Self, Ind-Mar and three others from all government contracting. In April 2014, North Florida and Matt Self entered into an administrative agreement with the SBA in which they admitted to having created and operated Ind-Mar in violation of its Coast Guard contracts and SBA statutes and regulations.
“Special programs to assist service disabled veterans are an important part of the SBA’s business development initiative,” said U.S. Attorney A. Lee Bentley III for the Middle District of Florida. “False claims such as this undermine the integrity of this vital program and, where found, will be vigorously pursued by our Office.”
“This settlement sends a strong message to those driven by greed to fraudulently obtain access to contracting opportunities set-aside for deserving small businesses owned and operated by service disabled veterans,” said Inspector General Peggy E. Gustafson for the SBA. “We are committed to helping ensure that only eligible service disabled veteran owned small businesses benefit from that SBA program.”
The settlement resolves allegations originally filed in a lawsuit by Robert Hallstein and Earle Yerger under the qui tam, or whistleblower provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in this case. Hallstein and Yerger will receive $180,000.
The investigation was a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, the Department of Homeland Security’s-Office of Inspector General and the SBA Office of Inspector General.
The claims resolved by the settlement are allegations only, except to the extent that North Florida and Matt Self have admitted to the conduct in their agreement with the SBA.
The case is captioned United States ex rel. Yerger, et al, v. North Florida Shipyards, et al., Case No. 3:11-cv-464J-32 MCR (M.D. Fla.).
Niagara Falls Corporation Sentenced for Violation of Clean Air ActRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Tier NY, LLC, located in Niagara Falls, NY, which was convicted of negligent endangerment under the Clean Air Act, was sentenced to two years probation and a $25,000 fine by U. S. Magistrate Judge Hugh B. Scott.Judge Scott also ordered the company to make $25,000 in capital improvements, relating to environmental compliance within the first 18 months of probation. Tier was also ordered to develop and institute an environmental training program which will provide an overview of the pertinent environmental statutes and regulations, and shall be provided to all current employees within 60 days of being approved by Probation, and shall be provided to all new employees within seven days of being hired.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that Tier, NY, LLC is engaged in the business of cleaning tanks that once carried hazardous materials, including titanium tetrachloride. Titanium tetrachloride, when combined with water, forms hydrochloric acid gas--a hazardous air pollutant listed under the Clean Air Act.
The charges stem from an incident that occurred on June 11, 2013. Tier employees cleaned a tank that last contained titanium tetrachloride. During the cleaning process, employees introduced a caustic solution with an unverified concentration of sodium hydroxide and water into the vessel and negligently caused the release of an unknown quantity of hydrochloric acid gas. The gas then travelled to an adjacent business and placed other people in imminent danger of death or serious bodily injury.
“Today's case represents yet another example of this Office's commitment to protecting the health and safety of the community,” said U.S. Attorney Hochul.
The sentencing is the culmination of an investigation on the part of the U.S. Environmental Protection Agency, Criminal Investigation Division, under the direction of Special Agent-In-Charge, Vernesa Jones-Allen and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella.
Niagara Falls Corporation Pleads Guilty to Violation of Clean Air ActRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Tier NY, LLC, located in Niagara Falls, NY, pleaded guilty before U.S. Magistrate Judge Hugh B. Scott, to negligent endangerment under the Clean Air Act. The charge is punishable by a fine of $200,000 and a possible term of probation of up to five years.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that Tier, NY, LLC is engaged in the business of cleaning tanks that once carried hazardous materials, including titanium tetrachloride. Titanium tetrachloride, when combined with water, forms hydrochloric acid gas--a hazardous air pollutant listed under the Clean Air Act.
Sentencing is scheduled for January 8, 2015 at 10:00 a.m. before Magistrate Judge Scott.
The charges stem from an incident that occurred on June 11, 2013. Tier employees cleaned a tank that last contained titanium tetrachloride. During the cleaning process, employees introduced a caustic solution with an unverified concentration of sodium hydroxide and water into the vessel and negligently caused the release of an unknown quantity of hydrochloric acid gas. The gas then travelled to an adjacent business and placed other people in imminent danger of death or serious bodily injury.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency, Criminal Investigation Division, under the direction of Special Agent-In-Charge, Vernesa Jones-Allen and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella.New York Attorney Convicted of Fraud and Perjury in $5 Million Advance Fee SchemeRead the Press Release
Robert Bardey, an attorney in New York, was convicted yesterday by a federal jury in Brooklyn on all four counts of the indictment, including wire fraud and perjury, for defrauding an individual entrepreneur of $5 million through, among other things, false representations about the disbursement of funds placed in his purported escrow account and then lying in a federal grand jury. Co-defendant Theodore Sweeten pleaded guilty in June 2013 to wire fraud and was sentenced to 48 months in prison in January 2014. Co-defendant Thomas Bannon pleaded guilty in June 2014 to wire fraud and will be sentenced on November 7, 2014.
The guilty verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Robert Bardey had a license to practice law, but used it instead as a license to steal. Instead of protecting clients’ deposits placed in his attorney escrow account, he stole from that account. Bardey abused his position of trust and defrauded a sole investor of $5 million, and when questioned about it in a federal grand jury, he lied under oath. This conviction sends a strong message to attorneys in positions of trust that we will vigorously pursue them and bring them to justice if they use their positions to perpetrate fraud,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the FBI, the agency responsible for leading the government’s investigation.
Bardey, together with co-defendants Bannon and Sweeten, falsely represented to the victim, among other things, that they had access to hedge funds and wealthy investors who were willing, in exchange for a substantial fee, to “lease” funds and set up bank accounts in their clients’ names that contained the leased funds. Based on this and other misrepresentations, Bardey and his co-conspirators induced the victim to invest $5 million in order to “lease” a credit line of $100 million, which in turn would enable them to generate millions of dollars in profit through special investment programs. In furtherance of that scheme, Bardey and his co-conspirators falsely represented that the victim’s funds would be held in an attorney escrow account pending confirmation of the posting of $100 million in the leased-funds account. In fact, Bardey and his co-conspirators distributed the victim’s $5 million among themselves and falsely represented that a $100 million account had been created at HSBC by sending the victim fabricated bank documents on HSBC letterhead.
When the victim discovered that the bank documents on HSBC letterhead were phony, he requested a refund of the $5 million that he had deposited into Bardey’s attorney escrow account. In response, Bardey and his co-conspirators told the victim that the money had been disbursed to the investors who created the $100 million account. In particular, Bardey concealed from the victim the fact that he had begun withdrawing the escrowed funds for his personal use on the same day that the victim had deposited the $5 million into the escrow account.
When sentenced by United States District Judge Nina Gershon, Bardey faces a sentence of up to 20 years’ imprisonment for wire fraud conspiracy and wire fraud counts and five years’ imprisonment for the perjury count.
The government’s case is being prosecuted by Assistant United States Attorneys Jack Dennehy and Marcia M. Henry.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
ROBERT BARDEY
Age: 82
Residence: New York, New York
E.D.N.Y. Docket No. 12-CR-471
New Haven Man Charged with Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven returned an indictment yesterday charging JEROME T. WALKER, 27, of New Haven, with possession of a firearm by a convicted felon.
As alleged in court documents, on October 14, 2014, officers from the New Haven Police Department conducted a traffic stop of WALKER, who was driving with a suspended license, in the vicinity of Norton Street and Elm Street. After initially pulling over, WALKER accelerated from the scene at high rate of speed. A short time later, New Haven and Hamden Police officers found WALKER’s vehicle parked at a residence on Warner Street in Hamden. Officers then observed WALKER walking in front of the residence and he was placed under arrest. In the vicinity, officers found a duffel bag containing a Smith and Wesson .38 caliber revolver and set of car keys belonging to the vehicle that WALKER had been driving.
Prior to that date, it is alleged that WALKER had sustained multiple felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted, WALKER faces a maximum term of imprisonment of 10 years and a fine of up to $250,000. He has been detained since his arrest.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Haven Police Department and the Hamden Police Department. This case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Jennifer Laraia.
PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]New Hampshire Woman Pleads Guilty to Transportation of Stolen Property and Tax EvasionRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Janis
F. Woods, 65, of Conway, New Hampshire pleaded guilty in U.S. District Court to interstate transportation of stolen checks and tax evasion.According to court documents, between 2009 and 2012, Woods used her position as bookkeeper for Grover Gundrilling, Inc., of Norway, Maine, to issue herself 169 unauthorized checks totaling over $742,000 which she deposited into a bank account in New Hampshire.
Between 2007 and 2009, she used her position as bookkeeper for VM Foods of Conway, New
Hampshire to issue herself $220,000 in unauthorized checks. By failing to report the stolen funds on her federal income tax returns, she evaded almost $284,000 in taxes.
Woods faces up to ten years in prison and twice the gain or loss as a fine for the interstate transportation charge and up to five years in prison and twice the gain or loss on the tax evasion charge. She will be sentenced after completion of a presentence investigation report by the U.S.
Probation Office.
The case was investigated by the Federal Bureau of Investigation and the Internal
Revenue Service.Mexican National Convicted of Illegal ReentryRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Mexican national Julio Ruiz de los Santos, 26, was convicted of illegal reentry after authorities discovered that he was in the U.S. illegally for the third time, United States Attorney William J. Ihlenfeld, II, announced today.
Julio Ruiz de los Santos, who was previously deported twice from California to Mexico in 2007, pled guilty to one count of “Reentry of Removed Alien” after he was discovered in Morgantown, West Virginia without the consent of the Attorney General of the United States for reapplication for admission into the United States. He was sentenced to time served since September 2014 and remanded into the custody of U.S. Immigration and Customs Enforcement pending deportation.
Assistant U.S. Shawn Morgan prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Mexian National Sentenced to 35 Years in Prison for Cocaine and Heroin Trafficking and Related ChargesRead the Press Release
CHARLOTTE, N.C. – On Tuesday, October 28, 2014, Chief U.S. District Judge Frank D. Whitney sentenced Molina-Sanchez, 35, of Mexico, to serve 420 months in prison on drug trafficking and firearms charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A federal jury convicted Molina-Sanchez in May 2013 of conspiracy to distribute and to possess with intent to distribute at least five kilograms of cocaine and at least one kilogram of heroin, conspiracy to launder proceeds of drug trafficking, possession with intent to distribute cocaine and possession of a firearm in furtherance of drug trafficking.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Sheriff Kevin L. Auten of Rowan County Sheriff’s Office (RCSO).
According to filed court documents, trial evidence and today’s sentencing hearing, from 2004 to 2011, Molina-Sanchez and his conspirators obtained more than 350 kilograms of cocaine with a street value of more than $30 million from a supplier in California. Molina-Sanchez and his conspirators transported and distributed the cocaine to traffickers in North Carolina who then sold it throughout the state. Court records show that to transport the drugs without being detected, Molina-Sanchez and his conspirators hid the drugs and drug proceeds in secret car compartments. During the investigation, law enforcement found hundreds of thousands of dollars, three kilograms of cocaine, and a kilogram of heroin, all hidden in various locations within vehicles. When officers arrested Molina-Sanchez in October 2012, he was in possession of almost three ounces of cocaine, two handguns, and more than 100 rounds of ammunition, according to court records. Finally, based on evidence elicited at Molina-Sanchez’s May 2013 trial, law enforcement, post-trial, conducted a search of one of his vehicles and found a hidden compartment containing almost $50,000 in cash and three handguns.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) that has resulted in the conviction of 14 defendants on cocaine trafficking, money laundering, and firearms charges. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Molina-Sanchez has been in federal custody since October 2012. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The case was investigated by HSI in Charlotte and RCSO, assisted by the Charlotte-Mecklenburg Police Department and its crime laboratory, the Iredell County Sheriff’s Office and its crime laboratory, and the North Carolina State Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman.
Maryland Woman Admits to Treating Patients while Fraudulently Posing as a Physician’s AssistantRead the Press Release
Used Stolen Identity to Gain Employment at a Pediatrician’s Office; Treated 200 Patients, Including Infants, and Wrote Over 400 Prescriptions
Baltimore, Maryland - Shawna Michelle Gunter, age 37, of Annapolis, Maryland, pleaded guilty today to wire fraud and aggravated identity theft in connection with a scheme to pose as a physician’s assistant to obtain employment, during which she diagnosed and treated over 200 infants and children, and wrote over 400 prescriptions, all without a medical license.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police.
“Shawna Michelle Gunter admitted that she fraudulently posed as a licensed physician’s assistant, treating patients and writing prescriptions, although she has no medical training,” said U.S. Attorney Rod J. Rosenstein.
According to her plea agreement, in June 2013, Gunter was a surgical assistant in a doctor’s office in Maryland. She told the doctor that she needed a $7,800 loan for emergency repairs to her septic system, when in fact she was remodeling her boyfriend’s house. Despite receiving this money, on June 21, 2013, Gunter stole a check from the doctor and forged the doctor’s signature on the check for $14,400. When confronted, she admitted the theft and was fired. These funds, totaling $22,200, have not been repaid.
Gunter searched for another job and learned that a prior acquaintance, a pediatrician who had offices in Centreville and Chestertown, Maryland, was looking for a physician’s assistant. Gunter falsely told the doctor that she had just graduated from Howard University with a degree as a physician’s assistant. Gunter faxed a false resume to the doctor. The doctor hired Gunter with the understanding that she would provide documentation of her education, Maryland physician assistant’s license and DEA certification reflecting her authority to issue prescriptions.
Gunter began work for the pediatrician as a physician’s assistant on July 5, 2013. She was immediately asked for the documentation. Knowing that she was not licensed as a physician’s assistant in Maryland, Gunter provided a forged physician’s assistant certificate bearing the license number of an actual physician’s assistant, as well as an altered copy of that individual’s DEA controlled substance registration certificate. She also provided a fabricated diploma, purportedly from Howard University.
Gunter began seeing pediatric patients without direct supervision on August 18, 2013. From August 19 to 29, Gunter diagnosed and treated over 200 infants and children, including for sick visits, ADHD follow-ups, newborn visits and routine physicals. During this time, Gunter issued over 400 prescriptions for controlled substances.
Gunter’s provision of unlicensed and unqualified medical care resulted in the pediatrician’s practice unwittingly submitting hundreds of false claims for Medicaid coverage, and the payment of $19,668.19 in fees on those false claims.
Gunter faces a maximum sentence of 20 years in prison for wire fraud; and two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Richard D. Bennett scheduled sentencing for January 30, 2015, at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the Department of Health and Human Services Office of Inspector General, Maryland State Police, HSI and Maryland Natural Resources Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who is prosecuting the case.
Marydel Woman Pleads Guilty in Scheme to Embezzle over $1.2 Million from Her EmployerRead the Press Release
Greenbelt, Maryland - Janice McCumbie, age 45, of Marydel, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to steal over $1.2 million from a consulting company.The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, McCumbie worked for a global consulting business that served clients in various industries and had offices in Maryland and elsewhere. Clients paid large retainers to secure consulting services. The consulting company would issue refund checks to the clients in certain circumstances, including when a client’s retainer exceeded the amount of work that the consulting company actually performed or when the client made duplicate payments to the consulting company. McCumbie’s duties included coordinating client refunds.
Between June and December 2008, McCumbie caused the consulting company to issue six fraudulent refund checks totaling $121,081.22 to a co-conspirator in exchange for a share of the check proceeds.
From February 2009 to October 2013, McCumbie caused the consulting company to issue 42 false refund checks totaling $910,490.74 to defendant Leonard Smedley in exchange for a share of the check proceeds. Similarly, from October 2010 to November 2013, McCumbie caused the consulting company to issue 17 false refund checks totaling $217,695.57 to her niece, defendant Amber Gayleard, who cashed the checks and shared the proceeds with McCumbie. Smedley and Gayleard were not clients of the consulting company.
McCumbie has agreed to forfeit and pay restitution of $1,249,267.53, the loss resulting from her conduct.
McCumbie faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel scheduled her sentencing for January 27, 2015, at 9:30 a.m.
Leonard Smedley II, age 35, of Capitol Heights, Maryland; and Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania, previously pleaded guilty to the conspiracy and are scheduled to be sentenced on January 15 and 20, 2015, respectively, both at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David Salem, who are prosecuting the case.
Manhattan U.S. Attorney Obtains Temporary Restraining Order Against Outpatient Chemical Dependency Clinics Engaged in A Fraudulent Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O'Donnell, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced today that the United States has obtained a temporary restraining order (“TRO”) in Manhattan federal court against NARCO FREEDOM, INC. (“NARCO FREEDOM”), a provider of health care services including outpatient chemical dependency clinics. The TRO addresses an ongoing fraudulent kickback scheme whereby NARCO FREEDOM offers Medicaid recipients short-term housing in residences known as “three-quarter houses” or “Freedom Houses,” conditioned upon those residents attending NARCO FREEDOM’s outpatient clinics, thereby generating tens of millions of dollars in Medicaid funds for NARCO FREEDOM. The TRO enjoins NARCO FREEDOM from evicting the residents of its Freedom Houses for refusing to engage in the kickback scheme. U.S. District Judge John G. Koeltl entered the TRO today.
Manhattan U.S. Attorney Preet Bharara said: “Through its alleged scheme, Narco Freedom has both defrauded the government and profited from the exploitation of vulnerable individuals specifically when they are most in need of help. There is now a temporary restraining order in place that protects these vulnerable individuals, and this Office looks forward to obtaining further relief to remedy the alleged fraud that Narco Freedom has perpetrated.”
HHS-OIG Special Agent in Charge Thomas O'Donnell said: “The conduct displayed by Narco Freedom is another example of the damage personal greed does to our nation’s healthcare system. HHS-OIG recognizes the importance of substance abuse treatment, and will continue to ensure that those who provide those services do so in an honest fashion that complies with the law.”
As set forth in the complaint filed on October 28, 2014, in Manhattan federal court:
Since in or about 2006, NARCO FREEDOM has been engaged in a scheme to induce individuals who qualify for Medicaid, and who lack stable housing, to enroll in and attend NARCO FREEDOM’s outpatient clinics in exchange for short-term housing in residences known as “three-quarter houses,” which NARCO FREEDOM refers to as “Freedom Houses.” NARCO FREEDOM allows individuals without housing, many of whom have been recently released on parole, to reside in the Freedom Houses for approximately six to nine months, but requires all Freedom House residents to enroll in and attend its outpatient clinics, and evicts residents who do not comply. NARCO FREEDOM operates the Freedom Houses specifically in order to drive business to its outpatient clinics, and forces residents of its Freedom Houses who are already enrolled in other outpatient programs to transfer to NARCO FREEDOM’s outpatient programs, in violation of the Patients’ Rights provision of the New York State Code.
The complaint alleges that residents of the Freedom Houses are forced to sign paperwork purporting to relinquish any housing rights as well as privacy rights under the Health Care Portability and Accountability Act and other federal statutes. Staff at the Freedom Houses then monitor the residents’ attendance at outpatient programs and evict residents who do not attend all outpatient services as directed. NARCO FREEDOM obtains substantial financial gain from these outpatient services, which are funded almost entirely through Medicaid. NARCO FREEDOM also requires the Freedom House residents to direct their monthly shelter allowance provided by the New York City Human Resources Administration to NARCO FREEDOM. The Freedom Houses are the subject of numerous building code violations and resident complaints, including lack of basic sanitation and failure to curb drug use in the residences. The scheme exploits vulnerable individuals who are forced to comply with NARCO FREEDOM’s rules because they lack stable housing options.
According to the complaint, NARCO FREEDOM has subjected HHS to tens of millions of dollars in losses in Medicaid funds paid as a result of its fraudulent kickback scheme.
Mr. Bharara thanked the Office of the Inspector General at HHS-OIG for its investigative efforts and ongoing support and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Kirti Vaidya Reddy and Cristine Irvin Phillips are in charge of the case.
US v. Narco Freedom Complaint_14-CV-8593
US v. Narco Freedom TRO
MS-13 Gang Member Sentenced to Life in Prison for Murder and Attempted MurderRead the Press Release
A member of the MS-13 gang has been sentenced to life in prison for his role in a gang-related murder and the attempted murder of two rival gang members in the Atlanta metropolitan area.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia, Special Agent in Charge Brock D. Nicholson of Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE HSI) Atlanta Office and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
Remberto Argueta, aka Pitufo, 27, of Lilburn, Georgia was sentenced to life in prison in the Northern District of Georgia. Argueta was convicted of related charges on Nov. 22, 2013, following a three-week jury trial, of RICO conspiracy, violent crime in aid of racketeering and using a firearm to commit a crime of violence in connection with the murder of a suspected drug dealer and attempted murder of two rival gang members. Twenty-two additional defendants have been convicted of related charges as part of this case.
“Nearly two dozen MS-13 members have been convicted as a part of this investigation, wiping out the leaders and top members of an international street gang that spread violence and fear throughout the Atlanta area,” said Assistant Attorney General Caldwell. “Sentences like the one handed down today help us to put MS-13 out of business in Atlanta and throughout the United States.”
“Argueta helped MS-13 live up to its reputation as a ruthless, violent gang that spread fear throughout the community,” said U.S. Attorney Yates. “He displayed a callous disregard for human life and has fittingly earned his place behind prison walls for the remainder of his life.”
“The world will be a safer place with this defendant behind bars for the rest of his life,” said Special Agent in Charge Nicholson. “HSI is strongly committed to working with our partners at the FBI and local law enforcement agencies to identify and arrest the dangerous transnational gang members victimizing our communities.”
“This sentencing of a hardened MS-13 gang member is one of a series of convictions and sentences of members of this gang known for their violence in the northern metro Atlanta area,” said Special Agent in Charge Johnson. “While these dangerous gang members have now been neutralized, the FBI will continue to dedicate substantial investigative resources in this area to ensure that the void now created will not be filled by additional gang members or other gangs.”
According to evidence presented at trial, MS-13 is an international gang that has operated in the Atlanta area since at least 2005. The gang members claimed Gwinnett and DeKalb Counties as their home territory and used violence to defend their territory. They attacked rival gang members and committed armed robberies in furtherance of the MS-13 gang.
The evidence presented at trial showed that Argueta and other members of MS-13 planned to rob a suspected drug dealer at a hotel in April 2007. During the attempted robbery, Argueta and his fellow MS-13 members killed the suspected drug dealer, who was also armed, in a shootout. Hotel surveillance video showed one of the MS-13 members stopping to pick up the victim’s gun, which he later showed off as a trophy.
Additional evidence showed that in October 2007, Argueta and several other MS-13 members were at an apartment complex in Gwinnett County when Argueta spotted suspected rival gang members. He approached them and asked them who they “claimed” – that is, what gang they belonged to – and two of the rival gang members responded that they were members of the 18th Street gang. Argueta replied, “You’re going to die,” pulled out a handgun and started chasing and shooting at the rival gang members. During the pursuit, he shot one rival in the back and one in the hip and arm. Argueta fired several rounds during the pursuit, some of which went into the apartments of nearby residents. An elderly woman testified that one of Argueta’s bullets hit the headrest of an armchair that she had been sitting in just a few minutes earlier.
This case was investigated by ICE HSI and the FBI with assistance from the DeKalb County Police Department, Gwinnett County Police Department, and Gwinnett County Sheriff’s Office.
The case is being prosecuted by Trial Attorney Joseph K. Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Paul R. Jones of the Northern District of Georgia.
MS-13 Gang Member Sentenced to Life in PrisonRead the Press Release
ATLANTA - Remberto Argueta, a/k/a Pitufo has been sentenced to two concurrent life sentences for his role in a gang-related murder and attempted murders in the Atlanta metropolitan area.
“Argueta helped MS-13 live up to its reputation as a ruthless, violent gang that spread fear throughout the community,” said United States Attorney Sally Quillian Yates. “He displayed a callous disregard for human life and has fittingly earned his place behind prison walls for the remainder of his life.”
“Nearly two dozen MS-13 members have been convicted as a part of this investigation, wiping out the leaders and top members of an international street gang that spread violence and fear throughout the Atlanta area,” said Assistant Attorney General Caldwell. “Sentences like the one handed down today help us to put MS-13 out of business in Atlanta and throughout the United States.”
“The world will be a safer place with this defendant behind bars for the rest of his life,” said Special Agent in Charge Brock D. Nicholson, ICE Homeland Security Investigations (HSI) in Atlanta. “HSI is strongly committed to working with our partners at the FBI and local law enforcement agencies to identify and arrest the dangerous transnational gang members victimizing our communities.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This sentencing of a hardened MS-13 gang member is one of a series of convictions and sentences of members of this gang known for their violence in the northern metro Atlanta area. While these dangerous gang members have now been neutralized, the FBI will continue to dedicate substantial investigative resources in this area to ensure that the void now created will not be filled by additional gang members or other gangs.”
According to United States Attorney Yates, the charges and other information presented in court: MS-13 is an international gang that has operated in the Atlanta, Ga., area since at least 2005. The gang members staked out Gwinnett and DeKalb Counties as their home territory and used violence to defend their territory, attack rival gang members and commit armed robberies. The evidence presented at trial showed that Argueta, along with other members of MS-13, planned to rob Arpolonio Rios-Jarquin, a suspected drug dealer, at a hotel in April 2007. When Rios-Jarquin turned out to have his own gun, Argueta and his fellow MS-13 members engaged in a shootout with Rios-Jarquin that spilled outside the hotel room. Rios-Jarquin died from the multiple gunshot wounds inflicted on him. Surveillance video showed one of the MS-13 members stopped to pick up Rios-Jarquin’s weapon, which he later showed off as a trophy.
Additional evidence showed that in October 2007, Argueta and several other MS-13 members were at an apartment complex in Gwinnett County when Argueta spotted suspected rival gang members. He approached them and asked them who they “claimed”—that is, what gang they belonged to. When Christian Escobar responded that he and his friend, Jose Garcia-Barajas, were members of the rival 18th Street gang, Argueta said, “You’re going to die.” Argueta pulled out a handgun and started chasing and shooting at Escobar and Garcia-Barajas. He shot Escobar in the back and Garcia-Barajas in the hip and arm. While shooting at them, Argueta also fired shots into the apartments of nearby residents. An elderly woman testified that one of Argueta’s bullets hit the headrest of an armchair that she had been sitting in just a few minutes earlier.
Argueta, 27, of Lilburn, Ga., has been sentenced to two concurrent life sentences in prison. On November 22, 2013, after a trial lasting three weeks, a jury found Argueta guilty of RICO conspiracy involving murder, violent crime in aid of racketeering involving murder, and using a firearm to commit a crime of violence. Parole has been abolished in the federal system.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation with assistance from the DeKalb County Police Department, Gwinnett County Police Department, and Gwinnett County Sheriff’s Office.
Assistant United States Attorney Paul R. Jones and U.S. Department of Justice, Organized Crime and Gang Section Trial Attorney Joseph K. Wheatley prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Lumberton Karate Instructor Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A 60-year-old Lumberton, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Ronald Seabridge, Sr., owner of Brass Dragon Karate, was found guilty by a jury on Feb. 27, 2014, of receiving, distributing and possessing child pornography and was sentenced to 235 months in federal prison on Oct. 28, 2014 by U.S. District Judge Thad Heartfield.
According to information presented in court, in 2009, federal agents executed a search warrant at Seabridge’s residence/karate studio in Lumberton as the result of an undercover operation which determined Seabridge was using a peer-to-peer file sharing program to receive and distribute child pornography. Seabridge’s computer and hard drives were seized and a forensic examination revealed over 300 images of child pornography. Seabridge was indicted by a federal grand jury on May 23, 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation, the Lumberton Police Department, the Jefferson County Sheriff’s Office, and the Orange County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Christopher T. Tortorice.Logan County Assessor Charged with Federal Banking Law ViolationRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin filed an information in federal court in Charleston today against Russell R. Grimmett, also known as Rick Grimmett, for violating federal banking laws. Banks are required by federal law to report all cash transactions in excess of $10,000. Grimmett and an associate withdrew cash from the Logan Bank and Trust in Man, West Virginia in amounts less than $10,000 to prevent triggering the reporting requirement. This practice, known as “structuring,” is a federal crime. Grimmett, the Logan County Assessor, faces up to five years of imprisonment and a fine of up to $250,000 if convicted.
Today’s charge stems from an investigation conducted by the FBI, IRS Criminal Investigation, United States Postal Inspection Service, and the West Virginia State Police. Assistant United States Attorney Meredith George Thomas is handling the prosecution.
NOTE: An information is merely an accusation, and the defendant is presumed innocent until and unless convicted.
Lengthy Prison Terms Imposed in International Child Exploitation CaseRead the Press Release
MISSOULA - In what Montana's United States Attorney has described as a "major victory in the fight against child exploitation", the United States Attorney's Office announced that eleven men have been sentenced for their role in an international child pornography network which was targeted by investigators and prosecutors participating in Operation Kingdom Conqueror. The multi-agency, multi-national effort targeted an online bulletin board advertising and exchanging images of child pornography.
TONY BRONSON, a 53-year-old resident of Gary, Indiana, was sentenced on October 28, 2014 in connection with his April 2014 plea to guilty. Bronson was sentenced to 224 months in prison, 10 years supervised release and $29,859 restitution. In addition, Bronson must forfeit his computers and storage devices.
CHARLES CROSBY, a 43-year-old resident of Trenton, New Jersey, was sentenced on October 23, 2014 in connection with his April 2014 plea to guilty. Crosby was sentenced to 210 months in prison, lifetime supervised release and $29,859 restitution. In addition, Crosby must forfeit his computers and storage devices.
STEVE HUMISTON, a 57-year-old resident of Tacoma, Washington, was sentenced on October 23, 2014 in connection with his April 2014 plea to guilty. Humiston received 210 months in prison, lifetime supervised release, $29,859 restitution and a $5,000 fine. In addition, Humiston must forfeit his computers and storage devices.
JOHN JOHNSON, a 58-year-old resident of Locust Grove, Virginia, was sentenced on October 22, 2014 in connection with his April 2014 plea to guilty. Johnson received 180 months in prison, lifetime supervised release, and $29,859 restitution. In addition, Johnson must forfeit his computer and storage device.
ROBERT KRISE, a 66-year-old resident of Gaithersburg, Maryland, was sentenced on October 22, 2014 in connection with his April 2014 plea to guilty. Krise received 180 months in prison, lifetime supervised release, and $29,859 restitution. In addition, Krise must forfeit his computers and hard drives.
SCOTT LONG, a 53-year-old resident of Portland, Oregon, was sentenced on October 21, 2014 in connection with his April 2014 plea to guilty. Long received 200 months in prison, lifetime supervised release, and $29,859 restitution. In addition, Long must forfeit his computer and storage device.
IAN NOSEK, a 42-year-old resident of Charlottesville, Virginia, was sentenced on October 23, 2014 in connection with his April 2014 plea to guilty. Nosek received 216 months in prison, lifetime supervised release, and $29,859 restitution. In addition, Nosek must forfeit his camera and storage devices.
PHILLIP MORRIS, 42-year-old resident of Jeffersonville, Indiana was sentenced on October 22, 2014 in connection with his April 2014 plea to guilty. Morris received 216 months in prison, lifetime supervised release, and $29,859 restitution. In addition, Morris must forfeit his storage devices and cell phone.
JOSEPH PURIFICATO, a 23-year-old resident of Mount Vernon, Missouri was sentenced on October 28, 2014 in connection with his April 2014 plea to guilty. Purificato received 180 months in prison, 10 years supervised release, and $29,859 restitution. In addition, Purificato must forfeit his computers and thumb drive.
PAUL WENCEWICZ, a 48-year-old resident of Polson, Montana, was sentenced on October 21, 2014 in connection with his March 2014 plea to guilty. Wencewicz received 220 months in prison, lifetime supervise release, and $29,859 restitution. In addition, Wencewicz must forfeit his computer and storage devices.
JEFFREY WOOLLEY, a 53-year-old resident of Nicholasville, Kentucky, was sentenced on October 28, 2014 in connection with his April 2014 plea to guilty. Woolley received 180 months in prison, lifetime supervised release, and $29,859 restitution. In addition, Woolley must forfeit his computer and storage devices.
All defendants appeared before and were sentenced by U.S. District Judge Donald W. Molloy of Missoula.
Two additional defendants, Joshua Peterson, 45, of Prescott, Arizona, and Steven Grovo, 35, of Shirley, Massachusetts, were found guilty of participating in a child exploitation enterprise and a conspiracy to advertise child pornography on October 9, 2014 after a trial. Both men are scheduled to be sentenced on January 22, 2015 in Missoula.
In November 2009, an early participant in the conspiracy designed and created a web-based bulletin board which allowed the board members to share in their common interest in exchanging files online which contained child pornography and non-child pornography images depicting young girls. As the conspiracy progressed, additional members contributed to the design and operations of the board. Between November 6, 2009, through March 19, 2012, members of the conspiracy used the online bulletin board to share pictures and videos of children engaged in sexually explicit conduct. During that same time the participants agreed to use the online bulletin board to publish or print notices or advertisements soliciting additional images of child pornography which they would then share and broadcast on the internet.
The lengthy and wide ranging investigation, referred to as Operation Kingdom Conqueror, is an ongoing cooperative effort between the Federal Bureau of Investigation, Montana Department of Criminal Investigations, the Helena and Polson Police Departments, the United States Department of Justice - Child Exploitation and Obscenity Section, Homeland Security Investigations, the Montana Internet Crimes Against Children Task Force, and the States of Jersey Police Department, Isle of Jersey, near the United Kingdom.
Federal Bureau of Investigation Special Agent in Charge Mary Rook stated, "I commend the U.S. Attorney's Office for the District of Montana, U.S. Department of Justice Child Exploitation & Obscenity Section and each of the law enforcement agencies who worked on this case for their efforts in bringing justice to the victims. These successes are only possible through the commitment of our law enforcement community to working together to protect the most vulnerable, and prosecute to the full extent those who prey upon our children."
U.S. Attorney Mike Cotter called the sentences "a major victory in the fight against child exploitation. Pedophiles who savage our children through pornography, coercion and exploitation are on notice that when they are caught-and they will be caught-the consequences are dire and law enforcement's tolerance for these crimes non-existent".
Assistant U.S. Attorney Cyndee L. Peterson and Maureen C. Cain with the U.S. Department of Justice, Child Exploitation & Obscenity Section, prosecuted the case on behalf of the United States.
This case was initiated under the Department of Justice's Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state, and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task (or the MT ICAC). The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Last of 28 "United Blood Nation" Gang Members Sentenced to More Than 6 Years in Prison on Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Eric Eugene Brice, a/k/a “Bug,” 42, was sentenced today to 77 months in prison and to three years of supervised release for possession of an illegal firearm, a Maverick 99 pistol-grip shotgun, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Brice pleaded guilty to the charge in March 2014.
Brice is also the final defendant to be sentenced in connection with the 28 “United Blood Nation” (UBN) gang members indicted in 2012 on racketeering and related charges.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Tompkins in making today’s announcement.
According to filed documents and statements made in court, the defendants conspired to participate in a racketeering enterprise, that is, the United Blood Nation (“UBN” or “Bloods”) and several factions of the UBN. Court records indicate that from 2007 to May 2012, in the Western District of North Carolina and elsewhere, the defendants conspired to operate as a gang, a criminal enterprise, and in doing so, they engaged in criminal activities, including racketeering conspiracy, murder conspiracy, narcotics trafficking, armed robbery and firearms related crimes.
The remaining defendants have been sentenced as follows:
• James Anderson, a/k/a “Stank, 31, was sentenced to 84 months in prison and 5 years of supervised release. • Alan Boyd Donta Barnett, a/k/a “Big Al”, 39, was sentenced to 360 months in prison and 5 years of supervised release. • Travis Lamar Brice, a/k/a “Trap”, 30, was sentenced to 63 months in prison and 4 years of supervised release. • Quinton Lavar Brown, a/k/a “QP” or “QB”, 22, was sentenced to 70 months in prison and 4 years of supervised release. • Rafas Gene Camp, a/k/a “Tick”, 35, was sentenced to 130 months in prison and 4 years of supervised release. • Joston Jamal Clemmer, a/k/a “Ace”, 23, was sentenced to 97 months in prison and 2 years of supervised release. • Kemmey Nicole Cooke, a/k/a “ Gangsta Wu”, 32, was sentenced to 27 months in prison and 2 years of supervised release. • Jaimel Kenzie Davison, a/k/a “I-Shine”, 31, was sentenced to 150 months in prison and 2 years of supervised release. • Wesley Tyler Floyd, a/k/a “West Coast”, 28, was sentenced to 110 months in prison and 4 years of supervised release. • Davon Yakeen Futrell, a/k/a “Smooth”, 26, was sentenced to 63 months in prison and 2 years of supervised release. • Tristan Daquane Goode, a/k/a “Buck”, 22, was sentenced to 70 months in prison and 4 years of supervised release. • Nathaniel Graham, a/k/a “Nasty”, 25, was sentenced to 240 months in prison and 3 years of supervised release. • Joseph Dranell Gray, a/k/a “Killa”, 40, was sentenced to 180 months in prison and 2 years of supervised release. • Dominque O’Neill Jackson, a/k/a “DJ”, 26, was sentenced to 84 months in prison and 4 years of supervised release. • Jimmy Lionell, Jones, a/k/a “Buddhist” or “Buddha”, 39, was sentenced to 180 months in prison and 3 years of supervised release. • William Amir Knox, a/k/a “Poo Nuk”, 30, was sentenced to 108 months in prison and 5 years of supervised release. • Kentrell Tyrone McIntyre, a/k/a “Mustafa”, 35, was sentenced to 192 months in prison and 3 years of supervised release. • William Lewis Dontars Meeks, a/k/a “Willie” or “Rock”, 36, was sentenced to 130 months in prison and 8 years of supervised release. • Kevin Jerome Morris, a/k/a “Kato”, 37, was sentenced to 84 months in prison and 3 years of supervised release. • Franklin Robbs, a/k/a “Frankie Boo”, 43, was sentenced to 132 months in prison and 3 years of supervised release. • Maurice Terrell Robinson, a/k/a “Hell Rell”, 25, was sentenced to 70 months in prison and 2 years of supervised release. • Andrew Eugene Stowe, a/k/a “Coco”, 38, was sentenced to 60 months in prison and 4 years of supervised release. • Marquise Deshawn Watson, a/k/a “ Rambo”, 22, was sentenced to 97 months in prison and 2 years of supervised release. • Melinda Charmane Watson, 38, was sentenced to 46 months in prison and 4 years of supervised release. • Daryl Wilkinson, a/k/a “OG Powerful”, 50, was sentenced to 51 months in prison and 3 years of supervised release. • Samatha Williams, a/k/a “Samantha Wilkinson” or “Lady Sam”, 45, was sentenced to 72 months in prison and 2 years of supervised release. • Perry Gorontent Williams, a/k/a “P-Flame” or “Flame”, 29, was sentenced to 360 months in prison and 3 years of supervised release.
Court documents indicate that, as part of the conspiracy, the defendants engaged in drug trafficking, and used the proceeds of their drug crimes to help finance the gang’s criminal activities. According to court records, the defendants also committed armed robberies and armed home invasions in order to generate proceeds to support the enterprise. Court document show that, as part of the conspiracy, the defendants committed acts of violence against rival gang members. According to court records, the defendants concealed their criminal activities and obstructed justice, including threatening potential witnesses. The defendants also maintained and circulated a collection of firearms for the use in criminal activity by UBN members, court records show.
According to court records, the defendants and other UBN gang members in North Carolina and elsewhere identified gang members belonging to other UBN or Bloods factions by their gang names and phone numbers, including telephone area codes. For example, according to court records, area code “704” represented gang factions within Mecklenburg and Gaston Counties. Court records indicate that gang members identified other gang members who were incarcerated by their street gang names and by their inmate identification numbers, in lieu of their telephone numbers, while incarcerated gang members were referred to as “behind the G wall.”
According to court documents and court proceedings, as gang members of the UBN enterprise, the defendants met regularly with other UBN members. During those meetings, gang members talked about past acts of violence and other crimes against rival gang members, about UBN gang members who had been arrested or incarcerated, about police interactions with gang members and discussed internal disciplinary action of other UBN members, court records show. According to court records, also during these meetings, gang members shared identities of individuals whom they suspected to be cooperating with law enforcement and discussed the types of action that ought to be taken against those individuals. Court documents indicate that during these meetings, UBN members also planned and agreed on carry out future crimes, including murder, robbery, and drug trafficking.
The case was investigated by the FBI in cooperation with the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the North Carolina State Bureau of Investigation, the Charlotte-Mecklenburg Police Department, the Gastonia Police Department, the Gaston County Police Department, the Gaston County Sheriff’s Office, the Shelby Police Department, and North Carolina Department of Probation and Parole. All federal sentences are served without the possibility of parole.
The prosecution is handled by Assistant U.S. Attorney Jill Westmoreland Rose, Daniel Ryan, and Kevin Zolot of the U.S. Attorney’s Office.
KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Shalamar J. Wade, 34, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 15 years and eight months in federal prison without parole. Wade was sentenced as an armed career criminal due to his prior felony convictions.
On April 10, 2014, Wade pleaded guilty to being a felon in possession of a firearm. He was arrested by Independence, Mo., police officers on July 9, 2013, at a Quick Trip convenience store on US 24 Highway in Independence. When police officers confronted Wade inside the store, he resisted as they tried to take him into custody. During the altercation, Wade was forced to the floor and a loaded Taurus .38-caliber revolver fell from his belt.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Wade has four prior felony convictions for distributing a controlled substance and two prior felony convictions for possessing a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Jeremy Smith Imprisoned for Failing to Register as Sex OffenderRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jeremy Smith, 37, of Petersburg, New York, was sentenced today in United States District Court in Burlington to 12 months plus one day of imprisonment following his guilty plea to a charge that travelled in interstate commerce without updating his registration under the Sex Offender Registration and Notification Act. Chief U.S. District Judge Christina Reiss also ordered that Smith serve five years of supervised release following completion of his prison sentence.
On February 12, 2014, a federal grand jury in Rutland returned an indictment charging Smith with violating the federal Sex Offender Registration and Notification Act. Smith was arrested by U.S. Marshals in South Carolina on February 21 and has been in custody since then. According to the indictment and court records, Smith was convicted in Bennington, Vermont in 1999 of sexual assault on a minor. That conviction requires him to register as a sex offender with officials of any state where he resides or to which he moves. In early 2011, after being released from prison in Vermont, Smith moved to New York. However, he did not register as a sex offender with New York officials. Under federal law, when a sex offender moves from one state to another, he has three days to update his registration.
This case was investigated by the U.S. Marshal’s Service.
Smith is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Jacksonville Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced that Shaun Andrew Copenhaver (29, Jacksonville) yesterday pleaded guilty to receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a potential life term of supervision. Copenhaver has been in custody since his arrest on February 6, 2014. A sentencing hearing has not yet been set.
According to court documents, an agent with the Florida Department of Law Enforcement in Jacksonville began an undercover investigation to identify individuals in the area that had access to and/or were trading images and videos of child pornography over the Internet. The agent determined that a local computer was hosting images of child pornography using a peer-to-peer file sharing program, and was able to download several pornographic videos from this computer. Further investigation traced the Internet subscriber information to Copenhaver’s Jacksonville residence.
On February 6, 2014, law enforcement officers executed a federal search warrant at Copenhaver=s residence and seized a computer and an external hard disk drive. Copenhaver was at the residence. During an interview with agents, he admitted that he had been involved in downloading child pornography from the Internet for about five years. Subsequent analysis of Copenhaver’s external hard drive revealed that it contained videos depicting the sexual abuse of minor children.
This case was investigated by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
Inmate Pleads Guilty to Filing False Income Tax Returns for Fellow PrisonersRead the Press Release
CINCINNATI, OHIO -- James Jeremy Savage, 41, originally from Springfield, Ohio, pleaded guilty to one count of filing false claims for income tax refunds with the Internal Revenue Service (IRS). Savage was incarcerated in Ohio state correctional facilities in Warren and Madison counties when he committed this crime. Savage faces a maximum of 5 years in prison and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the guilty plea entered before Chief U.S. District Judge Susan J. Dlott
According to court documents, during the 2007 through 2011 income tax years Savage participated in a scheme to defraud the IRS relative to filing false claims for income tax refunds.
From approximately October 22, 2008 to August 24, 2011 while incarcerated, Savage prepared fictitious income tax returns for fellow inmates. The income tax returns prepared by Savage reported false wages not supported by Forms W-2 or other supporting income documentation and the income tax refunds were calculated based on false federal income tax withholdings as well as various tax credits.
Savage knew the inmates, for which he prepared income tax returns for, had not worked and in some cases had been incarcerated for multiple years. In many instances, Savage prepared multiple income tax returns for the inmates, including income tax returns for the prior income tax years that had not been filed. In an effort to convince the inmates that they were entitled to an income tax refund, Savage said the money was "free money," a result of "stimulus money" provided by the President, as well as money from back taxes.
Savage caused at least 99 false claims for income tax refunds to be filed with the IRS totaling at least $148,307.04.
“The object of this refund fraud scheme was to swindle the government and the taxpaying public,” said Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office.
Savage is currently in custody in Chillicothe Correctional Institution on unrelated state charges and will remain in custody pending sentencing in this case, for which a date has not been set.
This case is being prosecuted by Assistant U.S. Attorney Anne L. Porter and investigated by special agents of IRS-Criminal Investigation.Huntington Beach Man Sentenced to 10 Years in Prison for Nationwide Foreclosure Rescue ScamRead the Press Release
SACRAMENTO, Calif. — Jeremy Michael “Mike” Head, 34, of Huntington Beach, was sentenced today to 10 years in prison for a nationwide foreclosure rescue scam, United States Attorney Benjamin Wagner announced.
A federal jury found him guilty in May 2013, after a nearly four-week trial before United States District Judge Kimberly J. Mueller. Mike Head’s brother and co-defendant Charles Head, 40, was sentenced in September 2014 by Judge Mueller to 35 years in prison.
According to evidence presented at trial, Mike Head played an important leadership role in a fraud scheme that promised to help homeowners avoid foreclosure and repair their credit. He recruited and managed other members of the scheme. Through misrepresentations, fraud and forgery, the Head brothers and their associates substituted straw buyers for the victim homeowners on the titles of properties without the homeowners’ knowledge. These straw buyers were often friends and family members of the defendants. Once the straw buyers were on title to the homes, the defendants applied for mortgages to extract the maximum available equity from the homes. The defendants then shared the proceeds of the ill-gotten equity and the “rent” that the victim homeowners paid them. Ultimately, the victim homeowners were left with no home, no equity, and with damaged credit ratings. Between January 2004 and March 2006, the scam netted more than $15 million in fraudulently obtained funds from scores of homeowners, many of whom were in California.
U.S. Attorney Wagner said: “Mike Head made a small fortune taking advantage of victims who looked to him for help. Instead of helping, he stole the last remaining equity in their homes, and many victims were evicted and left destitute. He will now go to prison and pay for his crimes. This office continues to vigorously prosecute multiple variations of mortgage fraud throughout our district.”
“The scheme Head and his co-conspirators devised preyed upon individuals when they were most vulnerable and lived in fear of imminent foreclosure. Despite promises to help their victims avoid foreclosure, many were financially devastated by the scheme,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “The FBI is committed to thoroughly investigating complex mortgage fraud schemes, identifying all participants, and ensuring that those who have violated the trust of the American public face justice in federal court.”
"Today’s sentencing sends a clear message to those who commit mortgage fraud, the consequences can be severe,” said Acting Special Agent in Charge Thomas McMahon, IRS-Criminal Investigation. “The defendants in this case have hurt so many people and so many of our communities. This sentencing highlights IRS-CI's commitment to hold accountable those involved in these types of crimes."
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Michael D. Anderson and Matthew Morris are prosecuting the case.
This case began on February 28, 2008, when a federal grand jury indicted Mike Head, his brother Charles Head, and 14 other defendants with violations of mail fraud, conspiracy to commit mail fraud, and other charges. Eleven of Heads co-defendants have entered guilty pleas, and charges were dismissed against one.
Charges against the two remaining defendants, Domonic McCarns, 37, of Brea, and Anh Nguyen, 40, of Los Angeles are pending. The charges are allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of the President’s Financial Fraud Enforcement Task Force, established to wage an aggressive, coordinated effort to investigate and prosecute financial crimes. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes. For more information on the task force, please visit www.StopFraud.gov.
- Houston Woman Ordered to Prison for Alien Smuggling That Resulted in Death
Houston Man, Jesse R. Gonzales, Pleads Guilty to Transporting Methamphetamine and Heroin to New Orleans by "mega Bus"Read the Press Release
U.S. Attorney Kenneth A. Polite announced that JESSE R. GONZALES, age 24, of Houston, Texas, pled guilty today to one count of possession with the intent to distribute methamphetamine and heroin.
According to court documents, Louisiana State Police troopers arrested GONZALES on November 15, 2013, while performing a narcotics interdiction detail of a “Mega Bus” travelling from Houston to New Orleans. Troopers approached GONZALES after he exited the Mega Bus at the stop near Bienville and N. Peters Streets in New Orleans. After GONZALES appeared evasive and nervous, the troopers asked for his consent to search his only bag, a red backpack. A Louisiana State Police K-9 sniffed the outside of the backpack and alerted to the presence of narcotics. Troopers subsequently searched the backpack and found approximately 417 grams of methamphetamine and approximately 25 grams of heroin.
GONZALES faces a maximum sentence of 20 years of imprisonment, a $1,000,000.00 fine, and at least three years of supervised release. U.S. District Judge Stanwood R. Duval, Jr. has scheduled sentencing for January 29, 2015.
U.S. Attorney Polite praised the work of the Louisiana State Police in investigating this matter and thanked the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorney Matthew Payne is in charge of the prosecution.
Hartford Man Sentenced to 90 Months for Possessing Drugs, Drug Packaging Materials and Stolen FirearmRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KARL ROYE, also known as “Eagle,” 23, of Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 90 months of imprisonment, followed by three years of supervised release.
According to court documents and statements made in court, the Hartford Police Department received information that ROYE was selling crack cocaine out of his Holcomb Street residence in Hartford and that he possessed handguns that he used to protect his drug operation. Investigators then made a controlled purchase of crack at ROYE’s residence.
On September 5, 2013, the Hartford Police Department’s Shooting Task Force and the FBI’s Northern Connecticut Violent Crimes Task Force executed a state search warrant at ROYE’s residence. As the search team approached the residence, ROYE drove from his house at a high rate of speed. Officers stopped ROYE at the end of the street and seized from him two cell phones and $640 in cash. A search of ROYE’s residence yielded approximately $2,000 in cash and a money counting machine, which were found in ROYE’s bedroom. Searchers also found two backpacks that were hidden above a tiled ceiling in the basement. The backpacks revealed quantities of crack cocaine and marijuana packaged for distribution, two digital scales, drug packaging materials, and a .38 caliber Smith & Wesson, Model 60, revolver.
A firearms trace on the weapon established that it had been reported to the Hartford Police Department in November 2012 as having been stolen from the residence of its owner.
ROYE has been detained since his arrest on September 5, 2013. On June 11, 2014, he pleaded guilty to one count of possession with intent to distribute cocaine base (“crack”), and one count of possession of a firearm in furtherance of a drug trafficking crime.
ROYE’s criminal history includes an arrest by Hartford Police on October 8, 2009, after he was found in possession of four loaded handguns, a silencer and quantities of crack and marijuana.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The FBI task force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney John H. Durham.
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(203) 821-3722 [email protected]Hartford Crack Dealer Sentenced to Four Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TYRONE CRUMP, also known as “KT,” 29, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 48 months of imprisonment, followed by one year of supervised release, for distributing crack cocaine.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, one of the main targets of the investigation was Dementrius Nave, a member of the AVE street gang with a lengthy criminal history. Court-authorized wiretaps of Nave’s phones, coordinated motor vehicle stops and seizures, and physical surveillance, confirmed that Nave and his associates, including CRUMP, conspired to distribute crack cocaine and other narcotics in Hartford’s Northeast neighborhood. CRUMP is a member of the AVE.
CRUMP’s criminal history includes convictions for multiple firearm offenses, theft of motor vehicles, fleeing police, possessing narcotics and smuggling contraband into a correctional facility.
CRUMP has been detained since his arrest on May 8, 2012. On November 12, 2013, he pleaded guilty to one count of using a telephone to facilitate the distribution of crack cocaine.
Nave also pleaded guilty and, on August 21, 2014, was sentenced to 15 years of imprisonment.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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(203) 821-3722 [email protected]Haitian Man Charged in $200,000 “Email Takeover” Scam Against Victim in Saratoga, Calif.Read the Press Release
SAN JOSE – Maxito Pean was indicted by a federal grand jury today for stealing money through an email takeover scam and laundering those funds by “layering” them through multiple accounts, announced United States Attorney Melinda Haag, Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon, and Santa Clara County Regional Enforcement Allied Computer Team Task Force (REACT) Project Director Michael Sterner.
Pean, 51, of Port-au-Prince, Haiti, was charged with conspiracy to commit wire fraud and four substantive counts of wire fraud. He was also charged with conspiracy to commit money laundering, four substantive counts of laundering funds to conceal their source, and six counts of engaging in financial transactions using criminal proceeds.
According to the indictment, Pean received funds as a result of an email takeover scam, in which a victim was sent a “phishing” email to capture his username and account password. The phishing email was designed to trick the victim into clicking on a link that delivered him to a fraudulent website created to look like its legitimate counterpart. When the victim logged into the fraudulent website, his username and password for that account were captured, allowing an imposter to access the victim’s account, review its contents, and send and receive e-mails posing as the victim.
The indictment further alleges the fraud began when an imposter, who had gained access to the email account of a victim living in Saratoga, Calif., posed as the victim to send an email directing a representative at Deutsche Bank in San Francisco to transfer funds from the victim’s account. Believing the instructions had come from her client, the representative wired $233,200 from the victim’s account to an account held in the name of “Southeastern Capital Group Inc.” in Lauderhill, Fla. That account was opened only a month before the transfer, by a homeless man in Florida whom the indictment alleges was acting as a “money mule” in return for a small cash payment. From there, the funds went to another account, opened by a different “money mule,” held in the name of “Meade Financial Services.” Only after passing through those two accounts did the funds make their way to the defendant.
The maximum penalty for conspiracy to commit wire fraud and wire fraud, in violation of 18 U.S.C. §§ 1349 and 1343, respectively, is 30 years in prison and a $1,000,000 fine, or twice the gross gain or gross loss from the transaction, whichever is higher. The maximum penalty for conspiracy to commit money laundering and money laundering, in violation of 18 U.S.C. §§ 1956(h) and 1956(a)(1)(B)(i), is 20 years in prison and a $500,000 fine, or twice the value of the property involved in the transaction, whichever is higher. The maximum penalty for engaging in monetary transactions using property derived from specified unlawful activity, in violation of 18 U.S.C. § 1957, is ten years in prison and a $250,000 fine, or twice the value of the property involved, whichever is higher.
The prosecution is the result of an investigation initiated by the REACT in San Jose. REACT partnered with IRS Criminal Investigation – Oakland Field Office to expand the scope of the investigation. U.S. Immigration and Customs Enforcement, Homeland Security Investigations – West Palm Beach, and IRS Criminal Investigation – Jacksonville, Fla., also provided valuable support. Assistant United States Attorney David R. Callaway is prosecuting the case with the assistance of Elise Etter.
Please note that an indictment contains only allegations. As with all defendants, Maxito Pean must be presumed innocent unless and until he is proven guilty.
(Pean indictment )
Government Contractor, Its Owner, and Two Employees Charged in Multi-Million Dollar Fraud SchemeRead the Press Release
PHILADELPHIA – Devos Ltd., doing business as Guaranteed Returns (“Guaranteed Returns”), in Holbrook, NY, its Chief Executive Officer, Dean Volkes, and two others were charged by indictment, unsealed today, in a multi-million dollar scheme to defraud customers, including the government. Volkes, 51, of Port Jefferson, NY, Donna Fallon, 50, of Miller Place, NY, and Ronald Carlino, 66, of Deer Park, NY, are all charged in a conspiracy to obstruct justice and were arrested this morning, announced United States Attorney Zane David Memeger.
The indictment alleges that more than $116 million worth of drug products had been returned for refund and more than $14 million of those drugs belonged to federal government agencies, including the Department of Defense and the Veterans Administration. Other victims include numerous hospitals, pharmacies, and long-term care facilities.
Fallon serves as Chief Financial Officer for Guaranteed Returns and Carlino is an Information Technology employee. All four defendants are charged with conspiring to obstruct justice by concealing and destroying records involved in a Defense Department investigation, six counts of obstruction of justice, and three counts of lying to federal agents about those records. Volkes, Guaranteed Returns, and Fallon are also charged with money laundering conspiracy. Volkes and Guaranteed Returns are charged in 18 counts of wire fraud, 14 counts of mail fraud and one count of conversion of government property.
According to the indictment, Guaranteed Returns was in the business of managing the returns of pharmaceutical products for healthcare providers, including the Department of Defense (DoD) and the Veterans Administration. Manufacturers of pharmaceutical products frequently allow expired drugs to be returned for a refund. Guaranteed Returns handled this process for healthcare provider clients in exchange for a fee based on a percentage of the return value.
The indictment charges that Guaranteed Returns promised its clients that it would hold the clients’ “indate” (not yet expired) drug products until they expired, and then return them on the clients’ behalf, in exchange for a fee. Instead, according to the indictment, Guaranteed Returns, at the direction of CEO Dean Volkes, stole a significant portion of the “indate” drug products that it received from its clients; returned the drugs to the manufacturers; and kept the resulting refund money for itself and Dean Volkes.
The indictment further alleges that during the course of the scheme, a federal grand jury sitting in this district began investigating the diversion of funds under a contract with the DoD. During that investigation, an agent from the Defense Criminal Investigative Service met with Dean Volkes and served him with a grand jury subpoena requiring Guaranteed Returns to turn over records related to the DoD contract. Volkes and other Guaranteed Returns employees stated that they would comply with the subpoena. Instead, it is charged that with the help of Donna Fallon and Ronald Carlino, they destroyed some records and concealed others, and then lied to the investigating agents about why the records were not produced.
“The defendants in this case found a way to defraud the government, hospitals, pharmacies, and long-term care facilities by exploiting the system for returning expired drugs to pharmaceutical companies,” said Memeger. “My office will continue to aggressively prosecute and seek to recover illegal proceeds from those who use our precious health care dollars to enrich themselves at the expense of everyone else.”
“Fraud against the government amounts to stealing from American taxpayers, in service of pure greed,” said FBI Special Agent-in-Charge Edward J. Hanko said. “The FBI takes that very seriously, and we’re committed to tracking and shutting down financial fraud schemes.”
If convicted of all charges, defendant Guaranteed Returns faces a possible fine of over $200 million along with a $4,400 special assessment; Volkes faces a maximum possible statutory sentence of 810 years in prison, a fine of over $200 million, three years of supervised release, and a $4,400 special assessment; Fallon faces a maximum possible statutory sentence of 160 years in prison, a fine of over $200 million, three years of supervised release, and a $1,100 special assessment; and Carlino faces a maximum possible statutory sentence of 140 years in prison, a $2.5 million fine, three years of supervised release, and a $1,000 special assessment.This case was investigated by the Defense Criminal Investigative Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Nancy Rue and Paul Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Four Members of an Organization That Committed Fourteen Armed Robberies in Puerto Rico Indicted Under the Rico ActRead the Press Release
SAN JUAN, Puerto Rico – On October 29, 2014, an indictment issued by a federal grand jury in the District of Puerto Rico was unsealed, charging four defendants with racketeering, interference with commerce by robbery, and related firearm offenses, announced Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. The FBI is in charge of the investigation.
The Indictment charges Luis Ruiz-Santiago, a/k/a “Turbo/Wicho;” Roberto García-Santiago, a/k/a “Piri;” Jesús Ramírez-Cotto, “Coco/Conteo;” and Carlos López-Soto, a/k/a “Chemito” with violating the RICO Act, Hobbs Act, and using firearms during and in relation to crimes of violence. These four defendants were part of a criminal organization that engaged in robbery and acts of violence.
The purpose of the criminal enterprise was to enrich its members and associates. To accomplish this, defendants would: (1) commit armed robberies during which, through the use of force, violence, and intimidation, they would take money, electronics, and other property from persons and businesses, (2) pool resources in order to accomplish the robberies, (3) use guns to commit the robberies, (4) have a getaway driver for the robberies, (5) sell the items that were obtained from the robberies, and (6) share the proceeds of the robberies. The indictment alleges that the defendants are responsible for fourteen (14) armed robberies to persons, businesses, and street vendors. Through these robberies, defendants were able to obtain at least eighty-thousand dollars ($80,000.00) in profits.
“This RICO prosecution shows the continued commitment of federal and state authorities to disrupt and dismantle violent organizations whose members affect the daily lives of the people residing in Puerto Rico,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The United States Attorney’s Office for the District of Puerto Rico is determined to eliminate criminal organizations which engage in violent offenses for profit, at the expense of the safety and well-being of our citizens.”
The case is being prosecuted by Assistant United States Attorney Victor O. Acevedo-Hernàndez from the RICO Unit of the United States Attorney’s Office for the District of Puerto Rico and Special Assistant United States Attorney Kelly Zenón-Matos.If convicted, the defendants face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Former Union Officer Pleads Guilty to Stealing $12,000Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former secretary–treasurer of Brotherhood of Maintenance of Way Employees Lodge 800 pleaded guilty in federal court today to embezzling more than $12,000, which nearly depleted the lodge’s bank account.
Jeremy Bolte, 40, of Kansas City, Mo., pleaded guilty before U.S. District Judge Gary A. Fenner to 10 counts of embezzlement by a union officer.
Members of Lodge 800 are employees of BNSF Railway in the Kansas City metropolitan area. Bolte was appointed as secretary-treasurer of Lodge 800 on March 15, 2011, and remained in the post until he was removed from office on April 18, 2013. During the time he was a union officer, Bolte was the only person with a checkbook for Lodge 800’s checking account and only his signature was required on checks. Bolte also had a credit card for Lodge 800’s credit card account.
Between Jan. 19 and Sept. 7, 2012, Bolte wrote 18 unauthorized checks from Lodge 800’s bank account. Bolte admitted that he wrote 16 of those unauthorized checks to himself, which he endorsed and cashed to pay his personal bills. Bolte spent this money on personal lawyers’ fees related to a DUI arrest and a child support action by his ex-wife, car payments, rent payments and other personal expenses.
Between Dec. 27, 2011, and May 17, 2012, Bolte made seven unauthorized charges on Lodge 800’s credit card for personal expenses at Walmart, QuikTrip and Gas Depot. Bolte used the credit card at locations near his residence in Clay County, Mo., or where his children resided with his ex-wife near Topeka, Kan. In total, Bolte charged $491 in unauthorized expenses to Lodge 800’s credit card.
As a result of Bolte’s actions, Lodge 800 lost $12,009 and was left with only $33 in its checking account. Lodge 800 was also left with an unpaid credit card balance of $401.
Under federal statutes, Bolte is subject to a sentence of up to five years in federal prison without parole on each of the 10 counts, plus a fine up to $10,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Office of Labor-Management Standards.Former Ohio State Trooper Pleads Guilty to Violating Civil Rights of Several Female Motorists Through Sexual Activity and Cyber StalkingRead the Press Release
A former Trooper with the Ohio State Highway Patrol pleaded guilty today in Columbus, Ohio, to four counts of violating the civil rights of female motorists and one count of engaging in cyber stalking.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Kevin R. Cornelius of the FBI, Cincinnati Division, Superintendent of the Ohio State Highway Patrol (OSP) Colonel Paul A. Pride and Licking County Prosecutor Kenneth W. Oswalt made the announcement.
"There can be no greater breach of trust or abuse of authority than a police officer exploiting the power of his badge to sexually abuse the very citizens he has sworn to protect,” said Assistant Attorney General Caldwell. “Today’s guilty plea should serve as a reminder that nobody is above the law, especially those who have taken an oath to uphold it.”
“I thank the State Patrol for bringing this matter to our attention and the State Patrol and FBI for conducting an exhaustive investigation,” said U.S. Attorney Stewart. “I extend my sympathies to the victims of this unfortunate case. No one should ever have to fear illegal conduct from those very persons sworn to protect them and uphold the law.
According to court documents, Bryan D. Lee, 30, of Lancaster, Ohio, served as an OSP Trooper from approximately January 2006 until October 2013. In his plea agreement, Lee admitted that he violated the civil rights of four female victims by coercing them to engage in sexual acts, some of which he photographed, in exchange for his agreement not to file criminal charges or issue traffic infractions against the victims or their friends. Some of those acts were performed while the victims were under arrest and restrained in handcuffs. Lee also harassed and threatened some of the victims, including sending threatening electronic messages to one individual who Lee pulled over twice during a one-month period.
The investigation into Lee began when a routine review by OSP of the dash camera recordings in Lee’s cruiser revealed inappropriate conduct with a female driver and passenger whom Lee had stopped for a traffic violation. OSP uncovered multiple instances of administrative and criminal misconduct by Lee and contacted the FBI to assist in their investigation. Lee resigned his position at the outset of the investigation.
Lee’s sentencing hearing will be scheduled by U.S. District Judge Michael H. Watson of the Southern District of Ohio.
This case was investigated by the Columbus office of the FBI’s Cincinnati Field Division and OSP. The case was prosecuted by Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio and Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section. Also assisting in the investigation was Licking County Special Prosecutor Martin Frantz.
Former Ohio State Trooper Pleads Guilty to Violating the Civil Rights of Several Female Motorists Through Sexual Activity and Cyber StalkingRead the Press Release
WASHINGTON – A former Trooper with the Ohio State Highway Patrol pleaded guilty today in Columbus, Ohio, to four counts of violating the civil rights of female motorists and one count of engaging in cyber stalking.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Carter M. Stewart of the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Division (FBI), Colonel Paul A. Pride, Superintendent of the Ohio State Highway Patrol (OSP) and Licking County Prosecutor Kenneth W. Oswalt made the announcement.
“There can be no greater breach of trust or abuse of authority than a police officer exploiting the power of his position to sexually abuse the very citizens he has sworn to protect,” said Assistant Attorney General Caldwell. “Today’s guilty plea should serve as a reminder that nobody is above the law, especially those who have taken an oath to uphold it.”
“I thank the State Patrol for bringing this matter to our attention and the State Patrol and FBI for conducting an exhaustive investigation,” said U.S. Attorney Carter Stewart. “I extend my sympathies to the victims of this unfortunate case. No one should ever have to fear illegal conduct from those very persons sworn to protect them and uphold the law.”
According to court documents, Bryan D. Lee, 30, of Lancaster, Ohio, served as an OSP Trooper from approximately January 2006 until October 2013. In his plea agreement, Lee admitted that he violated the civil rights of four female victims by coercing them to engage in sexual acts while some were under arrest or restrained in handcuffs. He also admitted to photographing some of the sexual encounters. Lee admitted to dropping charges for some of the victims or the drivers of the vehicles after the sexual encounters. Lee also harassed and threatened some of the victims, including sending threatening electronic messages to one individual who Lee pulled over twice during a one month period.
The investigation into Lee began when a routine review by OSP of the dash camera recordings in Lee’s cruiser revealed inappropriate conduct with a female driver and passenger who Lee had stopped for a traffic violation. OSP uncovered multiple instances of administrative and criminal misconduct by Lee and contacted the FBI to assist in their investigation. Lee resigned his position at the outset of the investigation.
Lee’s sentencing hearing will be scheduled by U.S. District Judge Michael H. Watson of the Southern District of Ohio.
The case was investigated by the FBI Cincinnati Division’s Public Corruption Task Force and the Ohio State Highway Patrol. The case is being prosecuted by Assistant United States Attorney J. Michael Marous of the U.S. Attorney’s Office for the Southern District of Ohio and Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section. Also assisting in the investigation was Fairfield County Special Prosecutor Martin Frantz.
Former KC Woman Admits to $454,000 SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., woman pleaded guilty in federal court today to making false statements in order to receive more than $454,000 in income tax refunds.
Chiquita Tyler, also known as Chiquita Robinson, 33, of Wylie, Texas, formerly of Kansas City, pleaded guilty before U.S. Chief District Judge Greg Kays to making a false claim to a federal agency and to identity theft.
By pleading guilty today, Tyler admitted that she defrauded the federal government by preparing false income tax returns using false or stolen identity information in a scheme to receive $454,363 in refunds.
Between February 2010 and February 2011, Tyler prepared and filed false income tax returns using false and stolen information for approximately 70 individuals. Tyler prepared and electronically filed false income tax returns through Turbo Tax. She created false wages, false education expenses, false addresses and false occupations for the false income taxes she prepared. Some tax returns contained false dependents. Tyler directed refunds from the false returns be deposited on a prepaid debit card mailed to Tyler at her home address and other locations in Kansas City, Mo.
The total amount Tyler claimed through the preparation of false returns and use of prepaid debit cards was $454,363. The actual loss for amounts fraudulently received by Tyler was $343,889 because some of the fraudulent claims were discovered by the Internal Revenue Service prior to payment.
Under federal statutes, Tyler is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by IRS-Criminal Investigation.
Former KC Man Pleads Guilty to Two Bank RobberiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Kansas City, Mo., man has pleaded guilty in federal court to robbing banks in Columbia, Mo., and Jefferson City, Mo.
Brian Dewitt Unthank, 45, formerly of Kansas City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Tuesday, Oct. 28, 2014, to two counts of bank robbery.
By pleading guilty, Unthank admitted that he stole $6,328 from Landmark Bank, 1000 Keenesaw Ridge, Columbia, on June 18, 2010. Unthank also admitted that he stole $18,913 from River Regions Credit Union, 2009 Schotthill Woods Dr., Jefferson City, on June 23, 2010.
Investigators connected Unthank to the two Missouri robberies after he was convicted in August 2011 of robbing a bank in Texas, for which he was sentenced to prison for 10 years.
Under federal statutes, Unthank is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Jefferson City, Mo., Police Department, the Columbia, Mo., Police Department and the Missouri State Highway Patrol.Former Florence Resident Pleads Guilty to Theft of Government Funds and Identity TheftRead the Press Release
Contact Person: Bill Day (803) 929-3000
Florence, South Carolina ---- United States Attorney Bill Nettles stated today that Don Carlos Gibson, Jr., age 46, of Church Hill, Tennessee and formally of Florence, South Carolina, has entered a guilty plea in federal court in Florence, to Theft of Government Funds , a violation of 18 U.S.C. § 641. Additionally, Gibson, Jr. entered a guilty plea to Identity Theft, in violation of 18 U.S.C § 1028A(a)(1). United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Gibson collected disability payments from the Department of Veterans Affairs (VA) and the Social Security Administration (SSA) from 1997 to 2013 by falsely claiming he was unable to work. During the time Gibson claimed to be disabled, he attended golfing school in Myrtle Beach and was the general manager of a country club in North Carolina; a car salesman in North and South Carolina; and the pastor of a church in Utah. Gibson's fraud caused losses of $365,000 to the VA and of $350,000 to the SSA. Gibson also used another person’s identity to purchase automobiles in South Carolina and Tennessee.
Mr. Nettles stated the maximum penalty for Theft of Government Funds is imprisonment for 10 years and/or a fine of $250,000, and the maximum penalty for Identity Theft is imprisonment for 2 years consecutive and/or a fine of $250,000.
The case was investigated by agents of the Office of Inspector General (OIG) Department of Veterans Affairs and OIG Social Security Administration. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.Former Clay County Correctional Officer Pleads Guilty to Assaulting ArresteeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former correctional officer with the Clay County, Mo., Sheriff’s Department pleaded guilty in federal court today to violating the civil rights of an arrestee by assaulting him.
Eric M. Bottorff, 33, of St. Joseph, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges him with deprivation of rights under color of law.
“This unprovoked assault was a clear violation of this victim’s Constitutional rights,” said Dickinson. “The use of excessive force by law enforcement officers is a serious offense that strikes at the heart of Constitutional protections for all citizens.”
According to court documents, Bottorff was working as a correctional officer in the Clay County Detention Facility in Liberty, Mo., on Dec. 22, 2008. Bottorff, while in his official capacity, came into contact with the victim, identified in court documents as J.C., who was brought into the facility as an arrestee on outstanding warrants from a local municipality.
Bottorff admitted today that he physically struck J.C., resulting in serious bodily injury and thereby depriving J.C. of his constitutional right to due process of the law.
Bottorff was acquitted by a trial jury in November 2012 of a state charge of felony assault.
“This federal prosecution transcends the issue of a mere assault to address the significant Constitutional issues that are raised,” said Dickinson. “There remains a substantial federal interest in preventing law enforcement officers from using excessive force and in protecting the rights of all citizens to due process of the law under the Fourteenth Amendment.”
Under the terms of today’s plea agreement, the government agrees to request a probationary sentence. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by First Assistant U.S. Attorney David M. Ketchmark and Trial Attorney Sheldon L. Beer of the Criminal Section of the Civil Rights Division of the Department of Justice. It was investigated by the FBI.Former CEO Sentenced for Embezzling $338,000 from KC CompanyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former CFO/CEO of a Kansas City, Mo., company was sentenced in federal court today for a wire fraud scheme in which he embezzled more than $338,000.
James A. Kilkenny, 50, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to two years. The court also ordered Kilkenny to pay $338,221 in restitution.
On April 24, 2014, Kilkenny pleaded guilty to wire fraud. Kilkenny was an employee of Waechtersbach USA, Inc. from December 1998 until his termination in April 2012, at which time he was the CFO/CEO. Waechtersbach USA, located at 4201 N.E. 34th Street, Kansas City, Mo., is a distributor/vendor that purchases products from the German and Asian companies to distribute to U.S. retailers. Waechtersbach USA’s parent company is located in Germany.
Kilkenny admitted that he engaged in a nine-year-long, multi-pronged plan to embezzle from Waechtersbach between 2003 and 2012.
Kilkenny admitted that, during this time, he overpaid his own salary by $133,592. In 2006, Waechtersbach management notified Kilkenny that he was required to take a pay cut from $135,000 to $115,000 because of company-wide cutbacks. Starting the following year on Jan. 15, 2007, however, Kilkenny began increasing his salary and overpaying himself without the company’s knowledge. He accomplished this by paying himself an extra $35,000 that was broken down into two accounts and disguised as “warehouse” and “office” expenses.
Kilkenny also admitted that he used company funds to pay back loans he had taken against his 401K account ($75,169 loss) and issued unauthorized company checks to himself and others ($29,783 loss). The government contends that Kilkenny also used company funds to pay for his dependents’ health insurance without Waechtersbach’s knowledge or express authorization ($12,041 loss) and used the company’s travel credit card for personal, local expenses ($87,633 loss).
As CFO/CEO, Kilkenny was the person tasked with reporting Waechtersbach’s financials to the company’s owner. His embezzlement came to light when the owner of the company was notified by the U.S. Customs Department that the company had received an $80,000 import tax refund. The owner became suspicious and came to Kansas City to investigate. An internal investigation revealed that Kilkenny received the $80,000 refund but reported that the refund was for only $8,000. Kilkenny instructed the employees in the Kansas City office to lie about the amount if asked. The company then began investigating all of Kilkenny’s spending, which led to the discovery of over $200,000 that Kilkenney had embezzled.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the Kansas City, Mo., Police Department.Former Bank Employee Sentenced to 7 Years in Prison for Armed Bank Robbery in DundalkRead the Press Release
Provided Information on Bank Personnel and Procedures to Her Accomplice
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Janaya Brittne Person-Robinson, age 20, of Baltimore, Maryland, today to 84 months in prison, followed by five years of supervised release, for an armed bank robbery in which her accomplice forced a teller at gunpoint to accompany him and open the bank vault.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; and Chief James W. Johnson of the Baltimore County Police Department.
According to Person-Robinson’s plea agreement, on October 1, 2013, Janaya Brittne Person-Robinson and her accomplice Darrius Roszario Washington, parked his car in a lot near the M&T Bank in Dundalk. Person-Robinson had previously been a teller-trainee at the bank and was familiar with the bank layout, procedures and the tellers who worked at the bank. Shortly before 7:30 a.m., Washington and Person-Robinson approached a teller in the parking lot when she got out of her car. Washington pointed a .32 caliber gun at the teller’s head and ordered her to unlock the door of the bank. The teller initially told Washington that she could not open the door but Washington told her he knew she was lying and threatened to “blow her head off,” if she didn’t unlock the door. The teller opened the door and after Washington and Person-Robinson entered the bank, the teller fled and called police.
Once inside the bank, Washington, using information provided by Person-Robinson, approached a second teller, calling her by name. Washington knew that the teller had access to the bank’s vault. Using the gun, Washington forced the teller to accompany him to the vault and ordered her to open the door, threatening that if she did not, she would never see her child, whom Washington called by name, again using information provided by Person-Robinson. The teller opened the vault door and Washington forced her to the floor at gunpoint. Washington removed the money from the vault, while Person-Robinson emptied the cash from the teller drawers. Washington and Person-Robinson then left the bank, carrying a canvas bag filled with $133,600, got into their car and attempted to flee. They were arrested a short time later. Officers recovered the cash stolen from the bank, the gun used during the robbery, and the hats and latex gloves worn by Washington and Person-Robinson during the robbery.
Darrius Roszario D. Washington, age 20, of Baltimore, was previously sentenced to 135 months in prison, for his role in the robbery.
Washington and Person-Robinson remain in federal custody.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and Judson T. Mihok, who prosecuted the case.
Florida Man, Jaime Jauregui, Convicted of Gun Control and National Firearms Act ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAIME JAUREGUI, age 36, of Orlando, Florida, was convicted today after a 2 ½ day jury trial. The jury returned a verdict of guilty as charged on both counts of the superseding indictment which charged JAUREGUI with conspiracy to violate the Gun Control and National Firearms Acts (18 U.S.C. § 371) and possession of unregistered firearms (26 U.S.C. § 5861(d)).
According to previously filed court documents, agents of Homeland Security Investigations in New Orleans received information in January 2012 indicating that JAUREGUI was interested in acquiring items listed on the United States Munitions List to be smuggled to end users in Mexico. On at least four occasions from January 2012 through March 21, 2013, JAUREGUI met with an undercover agent in St. Tammany Parish to negotiate the purchase of more than 100 fully automatic assault rifles, grenade launchers, grenades, and night vision goggles, all of which were destined for a Mexican drug trafficking cartel. JAUREGUI provided a cash deposit of approximately $46,000.00 during those meetings. JAIME JAUREGUI hired CARLOS CABRERA, FRANCISCO MALDONADO, AND RUBEN JAUREGUI to assist him with transporting the weapons to the final destinations. None of the men have federal firearms or export licenses. Defendants CABRERA, MALDONADO, and RUBEN JAUREGUI previously pled guilty.
U.S. District Judge Jay C. Zainey scheduled sentencing for January 27, 2015. The maximum penalties for Count 1 are five years imprisonment, a fine of $250,000, and a $100 special assessment fee. The maximum penalties for Count 2 are ten years imprisonment, a fine of $250,000, and a $100 special assessment fee. Upon release from imprisonment, JAUREGUI is also subject to a three year term of supervised release.
“Jaime Jauregui and his co-conspirators planned to make a fortune by trafficking in illegal weapons intended to end up in the hands of Mexican drug cartels,” stated U.S. Attorney Polite. “Fortunately, the efforts of our law enforcement partners intervened before Jauregui’s criminality further jeopardized the safety of individuals here in the United States and in Mexico. After deliberating for less than one hour, the jury returned a guilty verdict that will ensure that Jauregui is held accountable for his dangerous actions.”
“Firearms regulations exist to ensure weapons crossing international borders are properly accounted for to preserve public safety and to keep them out of the hands of dangerous criminals,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. “This case shows the significant consequences awaiting individuals who attempt to illegally smuggle weapons across U.S. borders.”
U.S. Attorney Polite praised the work of Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Defense Criminal Investigative Service (DCIS), the Louisiana State Police, and the St. Tammany Parish Sheriff’s Office, in investigating this matter. Assistant U.S. Attorney Gregory M. Kennedy and Special Assistant U.S. Attorney Brian Ebarb are in charge of prosecuting this case.
Five Charged in $16 Million Investment FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), and Commissioner Drew J. Breakspear, Florida Office of Financial Regulation (OFR), announce the charges filed against Christopher Anzalone, 31, of California, Jeffrey Schuler, 54, of Boynton Beach, Florida, Ben Williams, 30, of Oregon, David Boyce, 30, of California, and Jacob Bradshaw, 32, of Ohio, for their alleged involvement in related investment fraud schemes that yielded an aggregate amount of over $16 million in investments from victims for the purported purchase of precious metal positions and over-the-counter stock.
According to the charging documents, the case involved the following three investment fraud schemes:
From September 2010 to December 2011, Liberty International Financial Services, Inc. (LIFS) was an investment firm in Fort Lauderdale with brokers who solicited investors for the purchase of purported precious metals positions in gold, silver, and palladium. Schuler and Anzalone were the co-founders of LIFS. Schuler was responsible for executing precious metals trade orders for the benefit of investors and Anzalone was responsible for overseeing LIFS brokers. Contrary to representations made to investors by LIFS brokers, Anzalone and Schuler allegedly invested less than $200,000 of the approximately $4 million provided by investors for the purchase of precious metals positions.
From mid-2011 through 2013, Liberty International Holding Corporation (LIHC) was a holding corporation in Fort Lauderdale whose stock traded in the over-the-counter market. LIHC brokers solicited investors for the purchase of LIHC stock. Anzalone was the co-founder of LIHC. Anzalone allegedly represented to brokers, and had brokers represent to potential investors, that LIHC had substantial assets, including a substantial position in metals held in a Panamanian depository. In truth and in fact, as Anzalone well knew, LIHC did not hold these positons or any assets of real value. Induced by misrepresentations made by LIHC brokers, investors purchased more than $9 million in LIHC shares.
From October 2012 through October 2013, Allied Financial Strategies, Inc. (Allied) was an investment firm operating in Miami. Allied brokers solicited investors primarily for the purchase of LIHC stock. Anzalone, Williams, Boyce, and Bradshaw worked at Allied. Williams and Anzalone allegedly induced investors to purchase LIHC shares by falsely and fraudulently representing to investors that a hedge fund or other large investment funds intended to purchase a substantial block of LIHC shares at an over-inflated price compared to the LIHC market price of those same shares. Williams and Anzalone allegedly used co-conspirators, including Boyce and Bradshaw, to falsely and fraudulently pose as other investors or hedge fund representatives to induce prospective investors to invest monies. Based on these false representations by these co-conspirators, investors wired over $3 million to accounts controlled by the co-conspirators.
The defendants are charged with counts of either conspiracy to commit mail and wire fraud, mail fraud, and wire fraud. If convicted, the defendants face a maximum possible statutory sentence of twenty years on each count. Schuler is charged by indictment in 14-60255-CR-Dimitrouleas. Anzalone is charged by information in 14-20737-CR-Moreno. Williams, Boyce, and Bradshaw are charged by indictment in 14-20774-CR-Cooke.
An information and an indictment is only an accusation and the defendants are presumed innocent until proven guilty.
Mr. Ferrer thanked the FBI, USPIS, and OFR for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Final Defendant Sentenced in International Money Laundering InvestigationRead the Press Release
ATLANTA – Heriberto Almonte-Reyes, the last of nineteen defendants in a large-scale money laundering organization, has been sentenced for his part in a conspiracy that laundered drug proceeds from Mexico, Australia, England, Spain, the Dominican Republic, Jamaica, the Bahamas, Guatemala, Miami, New York, and Puerto Rico.
“International drug trafficking is a sophisticated business, and money launderers provide the financial lifeline for the cartels,” said United States Attorney Sally Quillian Yates. “These defendants, most of whom were extradited from Columbia, were responsible for laundering tens of millions of dollars of drug money.”
John S. Comer, the Acting Special Agent in Charge of the DEA Atlanta Field Division commented, “Drug traffickers utilize a multitude of sophisticated methods in which to hide their assets, but one of DEA’s highest priorities is to relentlessly pursue and destroy these drug trafficking and money laundering organizations. This global money laundering investigation was a success because of the local, regional, national, and foreign law enforcement partnerships and our commitment to bring this organization to justice in the United States.
According to United States Attorney Yates, the charges and other information presented in court: In 2005, the DEA infiltrated an international money laundering organization through the use of a confidential informant. Targets of the investigation asked the informant to assist them in laundering drug proceeds across the globe. Undercover DEA agents and local agents picked up the drug money in Mexico, Australia, England, Spain, the Dominican Republic, Jamaica, the Bahamas, Guatemala, as well as Miami, Fla., New York and Puerto Rico. The drug money, totaling over $11 million was then deposited into undercover bank accounts in the Atlanta, Ga., area.
The investigation resulted in the seizure of over $15 million and resulted in the prosecution of high-level targets such as Severo Escobar Garzon, IV, who is reported to be the nephew of Pablo Escobar. Most of the defendants were extradited from Colombia to face federal charges, and two were extradited from the Dominican Republic and England. All of the defendants pleaded guilty to conspiring to launder drug proceeds. All of the defendants are expected to be deported to their country of origin after the completion of their sentences.
The defendants and their sentences are as follows:
- Victor Andres Murcia-Reyes, 40, of Bogota, Colombia, was sentenced to ten years in prison, on September 5, 2014.
- Luis Carlos Rodriguez-Vaca, 50, of Bogota, Colombia, was sentenced to nine years in prison, on December 16, 2010.
- Dario Vicente Caballero-Caballero, 51, of Barranquilla, Colombia, was sentenced to eight years, four months in prison, on April 16, 2014.
- Carlos Mario Becerra-Restrepo, 52, of Medellin, Colombia, was sentenced to eight years, four months in prison, on March 6, 2014.
- Alfredo Betancourt-Munoz, 66, of Bogota, Colombia, was sentenced to eight years in prison, on October 27, 2011.
- Heriberto Almonte-Reyes, 41, of Puerto Plata, Dominican Republic, was sentenced to seven years, three months in prison, on October 17, 2014.
- Severo Escobar Garzon, IV, 55, of Bogota, Colombia, was sentenced to six years, five months in prison, on January 12, 2012.
- Fernando Martinez-Borreaz, 49, of Bogota, Colombia, was sentenced to six years, four months in prison, on April 26, 2013.
- Juan Cenen Avila-Pena, 51, of Bogota, Colombia, was sentenced to six years in prison, on April 23, 2010.
- Carlos Mario Torres, 47, of Bogota, Colombia, was sentenced to four years, ten months in prison, on December 1, 2011.
- Oscar Eduardo Galvis-Pena, 41, of Bogota, Colombia, was sentenced to four years, five months in prison, on December 12, 2013.
- Hernando Valencia Munoz, 61, of Bogota, Colombia, was sentenced to four years, four months in prison, on January 13, 2012.
- Fabio Bravo-Russy, 59, of Bogota, Colombia, was sentenced to four years, four months in prison, on June 1, 2011.
- Ampara Balaquera-Zarta, 53, of Bogota, Colombia, was sentenced to four years in prison, on November 29, 2011.
- Alexander Salazar-Duarte, 43, of London, England, was sentenced to three years, four months in prison, on December 1, 2011.
- Jaime Moreno-Bravo, 70, of Bogota, Colombia, was sentenced to three years in prison, on July 22, 2011.
- Jersson Ramirez-Huertas, 38, of Bogota, Colombia, was sentenced to two years, six months in prison, on May 26, 2011.
- Martha Camacho-Roa, 48, of Bogota, Colombia, was sentenced to one year, eleven months in prison, on January 6, 2011.
This case was investigated by the Drug Enforcement Administration. Valuable assistance was provided by the Internal Revenue Service, the United States Postal Service, United States Customs and Border Patrol, international law enforcement partners, and the Doraville, Ga., Duluth, Ga., and Lawrenceville, Ga., Police Departments.
Assistant United States Attorneys Sandra Strippoli, Scott Ferber, and Jeffrey Viscomi prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Federal Judge Sentences Charlotte Man to More Than 18 Years in Prison for Sex Trafficking of A MinorRead the Press Release
CHARLOTTE, N.C. – Late on Tuesday, October 28, 2014, U.S. District Judge Robert J. Conrad, Jr. sentenced Juan Brandon Gray-Sommerville, 25, of Charlotte, to 225 months in prison followed by three years of supervised release for sex trafficking of a minor, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A federal jury convicted the defendant of one count of sex trafficking of a minor in August 2013.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Rodney D. Monroe, of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and testimony presented during the two-day trial, the minor female met Gray-Sommerville through social media in early March 2012. Shortly thereafter, the defendant began exchanging text messages with the minor, encouraging her to meet him. According to court records, on March 13, 2012, Gray-Sommerville and his girlfriend travelled to a town outside of Charlotte to pick up the minor in front of her school. There, he enticed to come to Charlotte with him by showing her a large sum of money and marijuana. According to trial testimony, the three of them drove back to Charlotte and checked into a motel. Trial testimony established that the defendant created an online advertisement on Backpage.com to recruit clients to engage in sex acts with the minor. Court records indicate that the defendant drove the minor to have sex for money with two clients. According to court documents and witness testimony, law enforcement located the minor when they responded her 9-1-1 call, after Gray-Sommerville abandoned her fearing police detection. Court records indicate that during the investigation, an FBI computer forensic examiner found on Gray-Sommerville’s computer the picture of the minor the defendant posted on Backpage.com. Investigators also recovered text messages the defendant had exchanged with the minor using his cell phone.
At sentencing, Judge Conrad considered an incident that occurred several months before the defendant picked up the minor victim at her school. Testimony regarding this incident was presented at trial. During that incident, law enforcement officers and agents encountered the defendant at a local hotel when he dropped off another minor so that she could prostitute there.
In announcing his sentence, Judge Conrad said that Gray-Sommerville was a pimp whose actions were callous. The judge also found that the Gray-Sommerville knowingly testified falsely at trial and that credible evidence presented at trial showed that the defendant knew early on in his involvement with the victim that she was a minor.
Gray-Sommerville has been in local federal custody since April 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation of the case was handled by the FBI and was assisted by CMPD and Homeland Security Investigations (“HSI”). Assistant U.S. Attorney Kimlani Ford, of the U.S. Attorney’s office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Federal Indictment: Lawrence Man Distributed Child PornRead the Press Release
KANSAS CITY, KAN. – A Lawrence, Kan., man was indicted Wednesday on a federal charge of distributing child pornography, U.S. Attorney Barry Grissom said.
Tyler B. Padden, 33, Lawrence, Kan., was charged with one count of distributing child pornography and one count of possession of child pornography. The crimes are alleged to have occurred on May 1 and May 2, 2013, in Douglas County, Kan.
The indictment alleges he used peer-to-peer software and a computer connected to the Internet to distribute child pornography.
If convicted, he faces a penalty of not less than five years and not more than 20 years on the distribution charge, and a maximum penalty of 10 years and a fine up to $250,000 on the possession charge.
The FBI investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
OTHER INDICTMENTS
Paxton L. Graves, 25, is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Oct. 16, 2014, in Mission, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Stephen Loren Clark, 42, is charged with one count of failing to register as required by the Sex Offender Registration and Notification Act. The indictment alleges that he traveled to Kansas where he did not register. The indictment alleges he had been convicted in St. Charles County, Mo., on a charge of rape.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshall Service investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Eleven Men Sentenced to Prison in Connection with International Child Exploitation EnterpriseRead the Press Release
Eleven men have been sentenced to federal prison for their roles in an international child pornography network operated online, which was targeted by state and federal investigators and prosecutors participating in Operation Kingdom Conqueror.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Michael W. Cotter of the District of Montana and Special Agent in Charge Mary Rook of the FBI’s Salt Lake City Division made the announcement.
According to court documents, in November 2009, an early participant in the conspiracy designed and created an online bulletin board that allowed members to exchange images, including child pornography. As the conspiracy progressed, additional members contributed to the design and operations of the board. Between Nov. 6, 2009, and March 19, 2012, members of the conspiracy used the online bulletin board to share pictures and videos of children engaged in sexually explicit conduct. During that same time period, the participants agreed to use the online bulletin board to solicit additional images of child pornography, which they would then share and broadcast on the Internet. Thirteen defendants have been charged and convicted for their participation in this child pornography network.
The following defendants pleaded guilty in April 2014 to conspiracy to advertise child pornography and were sentenced by U.S. District Judge Donald W. Molloy of the District of Montana:
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Tony Bronson, 53, of Gary, Indiana, was sentenced to serve 224 months on Oct. 28, 2014.
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Charles Crosby, 43, of Trenton, New Jersey, was sentenced to serve 210 months in prison on Oct. 23, 2014.
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Steve Humiston, 57, of Tacoma, Washington, was sentenced to serve 210 months in prison and ordered to pay a $5,000 fine on Oct. 23, 2014.
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John Johnson, 58, of Locust Grove, Virginia, was sentenced to serve 180 months in prison on Oct. 22, 2014.
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Robert Krise, 66, of Gaithersburg, Maryland, was sentenced to serve 180 months in prison on Oct. 22, 2014.
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Scott Long, 53, of Portland, Oregon, was sentenced to serve 200 months in prison on Oct. 21, 2014.
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Ian Nosek, 42, of Charlottesville, Virginia, was sentenced to serve 216 months in prison on Oct. 23, 2014.
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Phillip Morris, 42, of Jeffersonville, Indiana, was sentenced to serve 216 months in prison on Oct. 22, 2014.
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Joseph Purificato, 23, of Mount Vernon, Missouri, was sentenced to serve 180 months in prison on Oct. 28, 2014.
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Paul Wencewicz, 48, of Polson, Montana, was sentenced to serve 200 months in prison on Oct. 21, 2014.
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Jeffrey Woolley, 53, of Nicholasville, Kentucky, was sentenced to serve 180 months in prison and ordered to pay a $5000 fine on Oct. 28, 2014.
All of the defendants were ordered to forfeit their computers and storage devices. Purificato received a 10-year term of supervised release following his prison sentence. All other defendants received lifetime terms of supervised release. All defendants are required to pay $29,859 restitution.
Two additional defendants, Joshua Peterson, 45, of Prescott, Arizona, and Steven Grovo, 35, of Shirley, Massachusetts, were found guilty of participating in a child exploitation enterprise and a conspiracy to advertise child pornography on Oct. 9, 2014. Both men are scheduled to be sentenced on Jan. 22, 2015, in Missoula, Montana.
The investigation, referred to as Operation Kingdom Conqueror, is an ongoing cooperative effort between the Criminal Division’s Child Exploitation and Obscenity Section, FBI, Montana Department of Criminal Investigations, Helena and Polson Police Departments, Immigration and Customs Enforcement’s Homeland Security Investigations, Montana Internet Crimes Against Children Task Force, and the States of Jersey Police Department, Isle of Jersey.
Trial Attorney Maureen C. Cain of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Cyndee L. Peterson of the District of Montana prosecuted the case.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state, and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Election Day Officer and Investigators on Duty to Examine Complaints of Fraud or Voter Rights AbusesRead the Press Release
Acting United States Attorney Annette L. Hayes announced today that Assistant United States Attorney (AUSA) Arlen Storm will lead efforts in the Western District of Washington in connection with the Justice Department’s nationwide Election Day Program with respect to the upcoming November 4, 2014, general elections. AUSA Storm has been appointed to serve as the District Election Officer (DEO) for the Western District of Washington, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington DC.
“Every citizen must be able to vote without interference or discrimination and know that their vote will be counted without the corrosion of fraud,” said Acting United States Attorney Annette L. Hayes. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”In order to respond to complaints of election fraud or voting rights abuses and to ensure that such complaints are directed to the appropriate authorities, Acting United States Attorney Hayes stated that AUSA/DEO Storm will be on duty in this District until voting is complete. He can be reached by members of the public at the following telephone numbers: 206-553-7970 or 253-428-3800.
The Department of Justice has an important role in deterring election fraud and discrimination, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. Federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses. Complaints can be called in to the FBI at 206-622-0460.
Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Acting United States Attorney Annette L. Hayes said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”