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20 October 2014
Pre-Trial Conference HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney’s Office announces today that there will be a Pre-Trial Conference hearing tomorrow (October 21, 2014) in United States v. Warren Dominique McDaniel. The hearing will be held at 2:00 pm on October 21, 2014, before United States District Judge Michelle Childs (courtroom # 2) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
Payroll Services Company Owner Pleads Guilty to Diverting $1.2 Million in Employment Taxes Due the IRSRead the Press Release
PROVIDENCE, R.I. – Warren Hebert, 67, of Barrington, R.I., owner of Checkmaster Payroll Services, pleaded guilty in U.S. District Court in Providence today to defrauding seven businesses and the Seekonk, Mass., Water District of more than $1.2 million dollars in federal payroll taxes that were to have been paid to the IRS, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
Hebert admitted to the court that he failed to pay to the IRS approximately $1,266,680 in funds he withdrew from client accounts to pay the clients’ federal employment taxes. Hebert admitted that he diverted the funds for his own use, in some instances paying the additional tax liabilities, interest and penalties of other clients whose tax returns he had previously failed to accurately prepare, file and pay-over.
Hebert admitted to the court, beginning as early as April 2009 and continuing through at least October 2011, he diverted money from at least seven businesses operating in Rhode Island and Massachusetts, including, among others, a moving and storage company, nursery school, jewelry packaging company, and marketing and communications company. Hebert also admitted to diverting funds from the Seekonk, Mass., Water District, a municipal water agency.
Appearing before U.S. District Court Chief Judge William E. Smith, Hebert pleaded guilty to eight counts of wire fraud and one count of impeding the administration of the Internal Revenue Code. He is scheduled to be sentenced on January 9, 2015.
Wire fraud is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $250,000. Impeding the administration of the Internal Revenue Code is punishable by a statutory penalty of up to 3 years in federal prison and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by IRS Criminal Investigation, with the assistance of the FBI, Rhode Island FDA Task Force, Rhode Island State Police and Barrington Police.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Owner of Texas Perfume Business Indicted for Violating Cash Reporting Requirements Involving More Than $1.6 millionRead the Press Release
The owner and president of a wholesale and retail perfume store in Laredo, Texas, was indicted by a federal grand jury today on 44 counts of causing his business to fail to report cash transactions of more than $10,000.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
The indictment alleges that Virender Sharma, 59, of Laredo, Texas, was the owner and president of T.M. Perfumes, and was responsible for complying with the cash reporting requirements for the company. Despite knowing of his filing obligations since 2006, Sharma allegedly caused the business to fail to report at least 44 cash transactions exceeding $10,000 between June 2009 and July 2010, which totaled more than $1.6 million.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Internal Revenue Service – Criminal Investigation and the Drug Enforcement Administration. The case is being prosecuted by Trial Attorney Keith Liddle of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Ted Imperato of the Southern District of Texas.
- Owner of Laredo Perfume Business Indicted for Violating Cash Reporting Requirements
Over 29,000 Students to Pledge Against Gun ViolenceRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles announced that on Wednesday, October 22, 2014, members of the United States Attorney’s Office and their local, state, and federal law enforcement partners will meet with students from across South Carolina, as part of South Carolina’s 13th annual Student Pledge Against Gun Violence.
Participating Schools: Abbeville High School Abbeville, SC Alice Drive Middle School Sumter, SC Andrews, SC Arden Elementary School Columbia, SC Bennettsville Intermediate School Bennettsville, SC Beech Hill Elementary School Summerville, SC Bethune-Bowman Elementary School Rowesville, SC Blacksburg Middle School Blacksburg, SC Brockington Elementary Magnet School Darlington, SC Burton-Pack Elementary School Columbia, SC Busbee Creative Arts Academy Cayce, SC Carver-Lyon Elementary School Columbia, SC Castle Heights Middle School Rockhill, SC C.E. Murray Junior High School Greeleyville, SC C.E. Murray High School Greeleyville, SC Central Elementary School Central, SC Cherokee Trail Elementary School Donalds, SC Croswell Drive Elementary School Sumter, SC E.B. Morse Elementary School Laurens, SC Ebenezer Middle School Sumter, SC Fairfax Elementary School Fairfax, SC Fairfield Elementary School Winnsboro, SC Fair-Oak Elementary School Westminster, SC Forest Brook Middle School Myrtle Beach, SC Grassy Pond Elementary School Gaffney, SC Hillcrest Middle School Dalzell, SC Hollis Academy Elementary School Greenville, SC J.C. Lynch Elementary School Coward, SC John W. Moore Intermediate School Florence, SC Joseph Keels Elementary School Columbia, SC Kinard Elementary School Clover, SC Ladson Elementary School North Charleston, SC Lamar High School Lamar, SC Lakeside Middle School Anderson, SC Latta Elementary Latta, SC Laurens Elementary School Laurens, SC Laurens Middle School Laurens, SC Limestone-Central Elementary School Gaffney, SC Lewisville Middle School Richburg, SC Logan Elementary School Columbia, SC Loris Elementary School Loris, SC Luther Vaughn Elementary School Gaffney, SC Macedonia Middle School Moncks Corner, SC Malcolm C. Hursey Elementary School North Charleston, SC Marion High School Marion, SC Mary Bramlett Elementary School Gaffney, SC Mary Ford Elementary School Charleston, SC McLaurin Elementary School Florence, SC McKissick Elementary School Easley, SC Merriwether Middle School North Augusta, SC Mitchell Math and Science Elementary School Charleston, SC Nevitt Forest Community School of Innovation Anderson, SC Northwest Elementary School Gaffney, SC Northwest Middle School Travelers Rest, SC Oakway Intermediate School Westminster, SC Oakwood Windsor Elementary School Aiken, SC Petersburg Primary School Pageland, SC Pocalla Springs Elementary School Sumter, SC Rawlinson Road Elementary School Rockhill, SC Rivelon Elementary School Orangeburg, SC South Kilbourne Elementary School Columbia, SC Stewart Heights Elementary School Dillon, SC Timrod Elementary School Florence, SC West Hartsville Elementary School Hartsville, SC W.A. Perry Middle School Columbia, SC
With a focus on keeping their schools and communities safe, students in middle school and high school will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children will make a simpler commitment, pledging that if they see a gun they will not touch it, they will assume that any gun they see might be loaded, and they will tell a teacher or a trusted adult. The effort is part of South Carolina’s Project CeaseFire, which is South Carolina’s implementation of the Department of Justice’s Project Safe Neighborhoods program, which is aimed at reducing gun violence. The Student Pledge Against Gun Violence is a national program that recognizes the role that young people, through their own decisions, can play in reducing gun violence. This campaign against youth gun violence culminates each October in a “Day of National Concern about Young People and Gun Violence.” The program provides a means for beginning the conversation with young people about gun violence. Students from around the country will join together in pledging to do their part to end gun violence. Over the years, millions of students nationwide have signed the pledge.
Mr. Nettles said that, just as in years past, the response to the pledge campaign has been outstanding, with approximately 29, 203 students from 67 schools across the state agreeing to take part. "Once again our office is pleased to take this opportunity to reach out to South Carolina students with an effort to engage students, teachers, and administrators to facilitate a dialogue with students about gun violence and the importance of making good decisions," stated Mr. Nettles.
The U.S. Attorney's Office worked with schools, student resource officers, and law enforcement agencies throughout the state to make the pledges available, providing the pledges to participating schools as well as scheduling presentations for some 37 of the schools that requested speakers. Below is a list of South Carolina schools that are participating in this year's pledge. For information on any events scheduled for a particular school, please contact the school. For additional information concerning the pledge, visit the national Student Pledge website atNorthern Arapaho Tribe Woman Pleads Guilty in New Mexico to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Tarasina Wallowingbull, 27, pleaded guilty this morning to abusing a child in New Mexico’s Indian County. Wallowingbull is a member of the Northern Arapaho Tribe of Fort Washakie, Wyoming, who currently resides in Albuquerque, N.M.
Wallowingbull was arrested on July 29, 2014, on a criminal complaint charging her with assault resulting in serious bodily injury. According to the criminal complaint, on June 11, 2014, Wallowingbull crashed her vehicle in San Felipe Pueblo in Sandoval County, N.M., while driving under the influence of alcohol. A young child, who was ejected from Wallowingbull’s vehicle at the time of the single-vehicle crash, sustained serious injuries.
Today Wallowingbull pled guilty to a felony information charging her with abuse of a child in Indian County. In entering her guilty plea, Wallowingbull admitted causing a child under the age of 18 years to be placed in a situation that endangered the child’s life or health.
At sentencing, Wallowingbull faces a statutory maximum sentence of three years in prison. Her sentencing hearing has yet to be scheduled.
This case was investigated by the Southern Pueblos and Laguna Agencies of the BIA’s Office of Justice Services, and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.Noaa National Weather Service Employee Indicted for Allegedly Downloading Restricted Government FilesRead the Press Release
*On March 10, 2015, the Department of Justice voluntarily moved to dismiss the indictment against Ms. Chen. On March 11, 2015, the U.S. District Court granted the motion, dismissing all charges.DAYTON, OHIO – Xiafen “Sherry” Chen, 59, of Wilmington, Ohio, was indicted in U.S. District Court for allegedly accessing restricted U.S. Government files. Chen is a hydrologist currently employed at the National Oceanic and Atmospheric Administration’s (NOAA) facility located in Wilmington, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge for the Federal Bureau of Investigation (FBI) in Cincinnati, Ohio, Dr. Kathryn Sullivan, the NOAA Administrator and George Lee, Special Agent in Charge of the U.S. Department of Commerce’s Investigations and Threat Management Division announced the indictment today.
The indictment alleges that on various dates in May 2012, Chen illegally accessed restricted areas of a protected U.S. Government computer database and downloaded sensitive files from the National Inventory of Dams. This database is maintained and controlled by the U.S. Army Corps of Engineers in conjunction with the National Dam Safety Review Board.
The indictment further alleges that on June 11, 2013, Chen provided materially false statements to officials from the Department of Commerce Office of Security who were assigned to investigate her activities.
The indictment charges Chen with one count of theft of U.S. Government property, a crime punishable by up to 10 years in prison and a $250,000 fine; one count of illegally accessing a U.S. Government computer database, a crime punishable by up to 5 years in prison and a $250,000 fine; and two counts of making materially false statements to federal agents, crimes each punishable by up to 5 years in prison and a $250,000 fine.
Chen was arrested today by FBI agents at her place of work at the Wilmington, Ohio NOAA facility.
U.S. Attorney Stewart commended FBI and the U.S. Department of Commerce’s Office of Security who are jointly investigating this case. Assistant United States Attorney Dwight Keller is representing the government in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.New Mexico Woman Sentenced for Possession of a Firearm and AmmunitionRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on October 20, 2014, April Marie Lacey, 32, Las Cruces, NM, was sentenced before U. S. District Judge Daniel L. Hovland to serve 10 years in prison for and possession of a firearm and ammunition by a convicted felon.
On September 14, 2013, a Montana Highway Patrol officer attempted to stop a car driven by Christopher Russell near Fairview, Montana. Russell refused to stop and a chase commenced which ended in North Dakota. McKenzie County law enforcement officials were able to apprehend Russell on Highway 85 near Arnegard, ND. Lacey was the lone passenger in the car. After stopping and arresting the two, officers found approximately two ounces of methamphetamine and a .380 caliber pistol in the car. Evidence revealed that the couple was traveling to the New Town, ND area to distribute the methamphetamine. Lacey was prohibited from legally possessing a firearm due to four felony convictions, including 2005 New Mexico convictions for armed robbery with a deadly weapon and a 2013 Washington conviction for third degree assault.
Judge Hovland also ordered that Lacey serve 3 years of supervised release and was ordered to pay a $100 pecial assessment to the Crime Victims Fund.
On September 8, 2014, Russell, 34, Tacoma, Wash., was sentenced before U. S. District Judge Daniel L. Hovland to serve 20 years in prison for possession with intent to distribute a controlled substance and possession of a firearm and ammunition by a convicted felon. Russell was prohibited from legally possessing a firearm due to four felony convictions, including a 2006 Missouri conviction for delivery of a controlled substance.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Northwest Narcotics Task Force, McKenzie County Sheriff’s Office, Federal Bureau of Investigation, and the Montana Highway Patrol.
Assistant U. S. Attorney David D Hagler prosecuted the case.
New Hampshire Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
A Hampton, New Hampshire, man pleaded guilty today in the U.S. District Court for the District of New Hampshire to filing a false federal income tax return for tax year 2009, the Justice Department and Internal Revenue Service (IRS) announced.
According to court documents, Menashe Cohen, an oriental carpet dealer, and his sister maintained an undeclared bank account at UBS in Switzerland that had a balance of approximately $1.3 million. Cohen also maintained bank accounts in Israel and in Jersey, a British Crown dependency located in the Channel Islands off the coast of Normandy, France. Although Cohen’s return for tax year 2009 reported that he had a financial interest in a bank account in Jersey, the return failed to report that he had financial interests in the accounts located in Switzerland and Israel. In addition, Cohen’s return only reported $350 in interest income, when in fact he had received approximately $66,500 in interest income during 2009.
In total, for tax years 2006 through 2009, Cohen failed to report approximately $170,000 in income earned from offshore bank accounts. In addition, Cohen filed a false and fraudulent Report of Foreign Bank and Financial Accounts (FBAR) for 2009, wherein Cohen reported he had bank accounts in Israel and Jersey on the FBAR, but failed to report his financial interest in the UBS account in Switzerland.
According to the law, U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns (Forms 1040). Additionally, U.S. citizens and residents must file a FBAR with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest or signature or other authority.
Cohen faces a statutory potential maximum sentence of three years in prison and a maximum fine of $250,000 at his Jan. 26, 2015, sentencing. In addition, Cohen has agreed to resolve his civil liability for failing to report his financial interest in the UBS account on a FBAR by paying a 50 percent civil penalty to the IRS based on the high balance of his one-half interest in the account.
This case was investigated by special agents of IRS-Criminal Investigation and is being prosecuted by Senior Litigation Counsel John E. Sullivan of the department’s Tax Division and Assistant U.S. Attorney Robert M. Kinsella for the District of New Hampshire.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax/.
New Hampshire Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
WASHINGTON – A Hampton, New Hampshire, man pleaded guilty today in the U.S. District Court for the District of New Hampshire to filing a false federal income tax return for tax year 2009, the Justice Department and Internal Revenue Service (IRS) announced.
According to court documents, Menashe Cohen, an oriental carpet dealer, and his sister maintained an undeclared bank account at UBS in Switzerland that had a balance of approximately $1.3 million. Cohen also maintained bank accounts in Israel and in Jersey, a British Crown dependency located in the Channel Islands off the coast of Normandy, France. Although Cohen’s return for tax year 2009 reported that he had a financial interest in a bank account in Jersey, the return failed to report that he had financial interests in the accounts located in Switzerland and Israel. In addition, Cohen’s return only reported $350 in interest income, when in fact he had received approximately $66,500 in interest income during 2009.
In total, for tax years 2006 through 2009, Cohen failed to report approximately $170,000 in income earned from offshore bank accounts. In addition, Cohen filed a false and fraudulent Report of Foreign Bank and Financial Accounts (FBAR) for 2009, wherein Cohen reported he had bank accounts in Israel and Jersey on the FBAR, but failed to report his financial interest in the UBS account in Switzerland.
According to the law, U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns (Forms 1040). Additionally, U.S. citizens and residents must file a FBAR with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest or signature or other authority.
Cohen faces a statutory potential maximum sentence of three years in prison and a maximum fine of $250,000 at his Jan. 26, 2015, sentencing. In addition, Cohen has agreed to resolve his civil liability for failing to report his financial interest in the UBS account on a FBAR by paying a 50 percent civil penalty to the IRS based on the high balance of his one-half interest in the account.
This case was investigated by special agents of IRS-Criminal Investigation and is being prosecuted by Senior Litigation Counsel John E. Sullivan of the department’s Tax Division and Assistant U.S. Attorney Robert M. Kinsella for the District of New Hampshire.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax/.Mobile County Man Sentenced to 5 Years Probation for Theft of Social Security (SSA) Widow's BenefitsRead the Press Release
The United States Attorney, Kenyen R. Brown, announces that Lovell Rhodes, a 77 year old resident of Mobile, Alabama was sentenced today. Mr. Rhodes pled guilty to theft of government funds on July 21, 2014. Mr. Rhodes mother died in 1997, and at that time, she was receiving SSA widow’s benefits. Her benefits continued to be deposited monthly into her bank account at Regions Bank for more than seven years after her death. Mr. Rhodes was sentenced today to a five year probationary term and order to repay the Social Security Administration $132,572.00, which was the total amount he stole over the seven year period.
Special Agents of the Social Security Administration’s Office of Inspector General investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Millcreek Man Sentenced to 20 Years for Production and Possession of Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 20 years in jail and lifetime supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Todd Calvin Lapping, 40.
According to information presented to the court, Lapping produced images of a minor engaged in sexually explicit conduct and possessed computer images depicting minors engaging in sexually explicit conduct.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Millcreek Police Department, the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Lapping.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Michigan Luxury Car Mechanic Indicted for Tax FraudRead the Press Release
A mechanic who specializes in repairing exotic foreign cars and other high-end luxury vehicles was arrested on Friday after being indicted on tax charges by a grand jury in Detroit, the Justice Department announced.
Terry Myr, a resident of Smith’s Creek, Michigan, was charged with tax evasion and failure to file tax returns. If convicted, Myr faces a maximum sentence of nine years in prison and a $650,000 fine.
According to the indictment, the Internal Revenue Service (IRS) assessed Myr approximately $195,000 in taxes, interest and penalties for his failure to report all of his income for the years 2000 through 2003. To avoid the IRS collecting this money, Myr transferred property that he owned to a third party, used nominee companies to conceal his income and assets, and otherwise dealt in cash. The indictment alleges that Myr failed to file tax returns from 2002 through 2010.
The case was investigated by special agents of the IRS – Criminal Investigation. Trial Attorneys Tiwana Wright and Kenneth Vert from the Justice Department’s Tax Division are prosecuting the case.
An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Medical Office Receptionist Pleads Guilty to Embezzlement, Credit Card Fraud, and Tax EvasionRead the Press Release
NEWARK, N.J. – A receptionist previously employed by a medical office in Kearny, New Jersey, today admitted embezzling more than $446,000 from her former employer, using fraudulent credit cards to obtain more than $200,000 in goods and services and evading taxes on that illegal income, U.S. Attorney Paul J. Fishman announced.
Gwendolyn Muller, 53, formerly of Kearny, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging one count each of embezzlement, credit card fraud and tax evasion.
According to documents filed in this case and statements made in court:
From 2007 through 2011, Muller used her position at the medical practice to take, cash, and conceal more than $446,000 in checks paid by insurance companies to the medical practice for services to patients. At various times during this same period, Muller also fraudulently obtained 10 credit cards in the name of a principal of the medical practice and used those cards to charge more than $218,000 in goods and services – a portion of which Muller paid for with embezzled funds. Muller also admitted to filing a false tax return to evade the payment of taxes on this illegally obtained income.
The embezzlement and credit card counts to which Muller pleaded guilty each carry a maximum potential penalty of 10 years in prison, and the tax count carries a maximum potential penalty of five years in prison. All three counts are also punishable by a fine of $250,000, or twice the gross loss or gain caused by the offense. Sentencing is scheduled for Feb. 19, 2015. Under terms of the plea agreement, Muller is required to forfeit $556,000 to the United States.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Defense counsel: Donald Rinaldi Esq., Nutley, N.J.
Muller, Gwendolyn Information
Manderson Man Sentenced to 60 Months for Conspiracy to Distribute MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota, man convicted of Conspiracy to Distribute Marijuana was sentenced on October 15, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Robert Dale Martin, age 47, was sentenced to 60 years in custody, 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Martin was indicted for Conspiracy to Distribute Controlled Substances by a federal grand jury on February 20, 2014. He pled guilty on June 27, 2014.
Beginning in the year 2000 through 2012, Martin received pound quantities of marijuana and brought it into South Dakota for further distribution. Martin engaged in a supervisory role and distributed more than 100 kilograms of marijuana on the Pine Ridge Reservation during this conspiracy.
This case was investigated by Northern Plains Safe Trails Drug Enforcement Task Force, which includes the following agencies: Federal Bureau of Investigation, Division of Criminal Investigation, Bureau of Indian Affairs Office of Justice Services, Oglala Sioux Tribe Department of Public Safety, Fall River County Sheriff’s Office, and the Fall River State’s Attorney’s Office. U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations also assisted with the investigation. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Martin was immediately turned over to the custody of the U.S. Marshals Service.
Man Sentenced to Statutory Maximum and Remanded into Custody for Defrauding Wichita Falls Couple of Their Life SavingsRead the Press Release
DALLAS — A man who admitted defrauding a couple from Wichita Falls, Texas, out of their life savings, was sentenced this morning in federal court in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Paul Eugene Prewitt, 44, most recently of Phoenix, Arizona, was sentenced by U.S. District Judge Reed C. O’Connor to the statutory maximum sentence of 60 months in federal prison and ordered to pay $242,250 in restitution. Judge O’Connor remanded Prewitt, who had been on bond, into federal custody. Prewitt pleaded guilty in May 2014 to a superseding information charging one count of conspiracy to commit wire fraud.
According to documents filed in the case, from February 2009 through at least 2012, Prewitt ran a scheme to defraud an elderly couple of their retirement savings through a series of fraudulent, false and fictitious investment opportunities. Prewitt admitted making false and fraudulent representations to the couple about investment opportunities, including a condominium project in Utah that did not even exist. As a result of Prewitt’s representations, the elderly victims wired or mailed all of their retirement savings to Prewitt, who used the money for personal expenses. Prewitt admitted that he never invested the money and that he received approximately $242,250 from the victims.
The case was investigated by the FBI, Wichita Falls Resident Agency, with special assistance from the FBI’s Phoenix Division. Assistant U.S. Attorney J. Nicholas Bunch prosecuted.
Man Pleads Guilty to Robbery at Wendy's in TopekaRead the Press Release
TOPEKA, KAN. - A man pleaded guilty Monday to an armed robbery at a Wendy’s restaurant in Topeka, U.S. Attorney Barry Grissom said.
George Christopher Walton, Jr., 37, Topeka, Kan., pleaded guilty to one count of robbery and one count of brandishing a firearm during the robbery. In his plea he admitted that on Aug. 4, 2014, he entered the Wendy’s restaurant at 728 S.W. Topeka Blvd. dressed all in black, wearing a mask and brandishing a firearm. He demanded cash from the register and then fled with the money.
Walton got into a car driven by his daughter and co-defendant Tashaun Desanic Walton. Police chased the car for several minutes before it stopped and Walton jumped out. He was captured a short while later in a residential area.
Sentencing is set for Jan. 26. Both parties have agreed to recommend a sentence of 84 months in federal prison.
His daughter, co-defendant Tashaun Desanic Walton, is set for a change of plea hearing Nov. 3.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Lower Brule Man Sentenced for Malicious MischiefRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man charged with Malicious Mischief pled guilty to and was sentenced on October 10, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Thomas Loudner, age 38, was sentenced to 2 months of custody, 1 year of supervised release, $1,000 restitution to the Lower Brule Sioux Tribe, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on January 26, 2013, when Loudner and others were driving around the Lower Brule Community. They were drinking and began to discuss having a bonfire. Loudner drove to the Lower Brule Sioux Tribe Old Boxing Club building, got out of his vehicle, grabbed a gas can, entered the building and set it on fire. The building sustained damage as a result of the fire.
The investigation was conducted by the Bureau of Indian Affairs, Lower Brule Agency. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Loudner was remanded to the custody of the U.S. Marshals Service.
Lackawanna Man Sentenced on to Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Kenneth Sweat, 26, of Lackawanna, N.Y., who was convicted of possession with intent to distribute and distribute crack cocaine, was sentenced to 27 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney John M. Alsup, who handled the case, stated that on February 18, 2013 and February 25, 2013, the defendant sold 36 grams of crack cocaine to a confidential source working with the Drug Enforcement Administration and Lackawanna Police.
The sentencing is the culmination of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel, and the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division.Idaho Resident Sentenced for Theft of Social Security BenefitsRead the Press Release
BOISE – Melinda Sue Priddy, 43, of New Meadows, Idaho, was sentenced today to five years of probation, including three months of home detention, for theft of $138,910 from the Social Security Administration, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Priddy to pay $138,910 in restitution to the Social Security Administration and to perform 100 hours of community service. She pleaded guilty to the charge on July 30, 2014.
According to the plea agreement, Priddy’s grandmother died in May of 2004. At the time of her death, Priddy’s grandmother was receiving survivor benefits from the Social Security Administration. These deposits were being made on a monthly basis into a bank account held jointly by Priddy and her grandmother. The Social Security Administration did not receive notification of Priddy’s grandmother’s death, and continued to make the monthly deposits into their joint account. From July of 2004 through May of 2013, Priddy, knowing that she was acting illegally, regularly withdrew this money for her own use.
The case was investigated by the Office of the Inspector General for the Social Security Administration.
Huntington Traffic Stop Exposes Heroin DealerRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced that Dwight McVernon Green, 24, of Huntington, West Virginia pled guilty today in federal court in Huntington to possession with intent to distribute heroin. United States District Court Chief Judge Robert C. Chambers presided over the plea hearing.
In the early morning of July 10, 2014, Huntington Police stopped a 2013 black Chevrolet Malibu for speeding in the 400 block of 26th Street. Green, the driver of the speeding car, was arrested for driving under the influence of alcohol. During a subsequent search of the vehicle, officers found a loaded 9 mm automatic pistol with a round in the chamber, a bag containing $59,950 in cash, a box of clear plastic baggies, a bag with more than 104 grams of white powder that tested positive for cocaine, and a bag with more than 50 grams of a brown substance that tested positive for heroin. Green faces up to 20 years imprisonment and a $1 million fine when he is sentenced on February 2, 2015.
The investigation was conducted by Huntington Police Department. The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Grandview Business Owner Indicted in $3 Million Extortion, Money Laundering SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a Grandview, Mo., lawn care company has been indicted by a federal grand jury for a $3 million extortion and money laundering scheme that began when a cocaine deal went awry.
Shelton E. Lewis, also known as “Steve Johnson” or “C,” 39, of Grandview, was charged in a 19-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, Sept. 18, 2014. That indictment was unsealed and made public following Lewis’s arrest in Atlanta, Ga., and initial court appearance in the U.S. District Court in the Northern District of Georgia. Lewis remains in custody pending a detention hearing in the U.S. District Court in Kansas City, Mo.
Lewis is the owner of Green Results Landscape & Lawncare, LLC. According to the federal indictment, Lewis and/or Green Results Landscape & Lawncare held three accounts at Academy Bank, a division of the Armed Forces Bank, N.A. These accounts were opened shortly after his business was formed and regularly held minimal, or as was often the case, negative balances. In August of 2012, the indictment says, that changed. Lewis allegedly began depositing large cashier’s checks and business checks into these accounts. From Aug. 31, 2012, to Aug. 14, 2013, the indictment says, Lewis deposited a total of $3,050,110 into his accounts, with all the proceeds coming from the same company.
The indictment alleges that Lewis transmitted multiple threats to injure that company’s owner, RW, as part of an extortion scheme.
According to the indictment, the extortion scheme began in July 2012 when Lewis agreed to sell approximately six ounces of cocaine for $3,000 to RW. While RW was waiting for the deal to be consummated, he was approached by the police. Lewis witnessed that police contact, the indictment says, and did not return with the agreed-upon cocaine. Lewis allegedly told RW that, since the deal was not completed, the dealer (Lewis’s source) was assessing a $10,000 penalty. RW paid the penalty and picked up what he thought was cocaine at the drop location, the indictment says, but only received a bag of flour.
In August 2012, according to the indictment, Lewis told RW that he had a plan for him to get his money back. The plan was for RW to purchase a block of cocaine and sell it, thereby recouping RW’s previously spent money. RW allegedly paid the requested money and additionally provided a Rolex watch that Lewis demanded. RW was further directed to obtain a pay-as-you go, or throw-away phone for future contact.
In the fall of 2012, Lewis allegedly told RW that he had been pulled over by the police and that the money and watch were seized. Lewis also claimed that the police had RW’s fingerprints from the watch and were going to charge RW with drug conspiracy. Lewis allegedly informed RW over the throw-away phone that he knew an attorney who could make the investigation go away, but it would require paying off the attorney and the judge assigned the case. RW paid the requested money, according to the indictment.
Lewis allegedly told RW that the attorney would contact him in the future. According to the indictment, when a person claiming to be an attorney contacted RW on the throw-away phone, the attorney reported that an unrelated federal investigation had developed which would require additional bribes to clear up. RW allegedly paid the additional, exorbitant sum.
RW was called, again on the throw-away phone, and told that the drug cartel knew where he lived and had left a present for him, the indictment says, which turned out to be a box full of Winchester .45-caliber, semi-automatic ammunition. Additionally, according to the indictment, RW was told that if he failed to make the payments requested, he or any family member presently in his home would have their heads chopped off.
According to the indictment, these threats were made using a throw-away phone that RW had been instructed to obtain. The phone calls were often followed by text messages describing payments that RW was expected to make in order to keep him from being charged with a crime, or to prevent violence from being inflicted upon him.
In addition to one count of threatening extortionate communications, the federal indictment charges Lewis with 18 counts of money laundering for engaging in monetary transactions in criminally derived property. Those transactions allegedly include multiple cash withdrawals at the Bellagio Resort & Casino in Las Vegas, Nev., purchases of luxury items such as a Rolex watch and several automobiles – including a Mercedes Benz, an Aston Martin and a Lamborghini – and paying off the mortgage on his Grandview residence.
The indictment also contains a forfeiture allegation, which would require Lewis to forfeit to the government any property derived from the proceeds of the alleged offenses, including a $3,050,110 money judgment (representing the proceeds obtained by Lewis from the scheme), $1,053,586 that has been seized from his bank accounts, a 2005 Bentley, a 2006 Mercedes Benz, a 2007 Aston Martin, a 2011 Aston Martin, a 2012 Lamborghini Gallardo and a 2013 Chevrolet Camaro.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Valenti. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.Glasgow Man Sentenced for Unlawful Possession of A Firearm by A FelonRead the Press Release
Convicted Felon Shot Off-Duty Policer Officer With a Sawed-off Shotgun
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Nickey Don Smith, II, 39, of Glasgow, West Virginia was sentenced today to eight years in prison and three years of supervised release following a 2012 guilty plea to being a felon in possession of a firearm. In December of 2011, Nickey Don Smith shot Glasgow police officer Steven Smith with a sawed-off shotgun at close range. Officer Smith, unrelated to Nickey Don Smith, and another Glasgow police officer had gone to Nickey Don Smith’s Glass Fire home in response to a 911 call made by Nickey Don Smith. After the officers arrived at the home, they announced “Police Department” twice, while they were making their way up the stairs to the porch. As Officer Smith approached the door, Nickey Don Smith shot him with a sawed off Central Arms 12 gauge shotgun. The shotgun blast struck Officer Smith in the arm, shoulder and the side of his chest, causing serious, permanent and life-threatening injuries and requiring multiple surgeries to repair the damage.
Nickey Don Smith was indicted by a federal grand jury in February of 2012 on two counts of felon in possession of a firearm. He pleaded guilty in June of 2012, and has been awaiting the outcome of psychological testing to determine his competency prior to sentencing. The Honorable John T. Copenhaver, Jr., United States District Court Judge, presided over the sentencing hearing today and issued a 16-page memorandum opinion regarding Nickey Don Smith’s competency. After a comprehensive review of the facts of the case and the reports from three psychologists, the Court concluded that Nickey Don Smith’s “mental disease or defect of his condition – properly diagnosed as Personality Disorder NOS with paranoid, narcissistic and anti-social factors – was not so severe as to render him unable to appreciate the nature and quality or the wrongfulness of his act of possessing a firearm as a convicted felon or his act of maliciously wounding Officer Smith at the time of the commission those acts.”
Former Vermont Corrections Officer Sentenced to 5 Months Incarceration and 5 Months Home Confinement in Connection with Plea to Obstruction of JusticeRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on October 16, 2014, former Vermont Correctional Officer Tracy Holliman, of South Burlington, was sentenced to 5 months incarceration followed by 5 months home confinement by United States District Court Judge Geoffrey Crawford in Rutland. The Grand Jury initially returned an Indictment charging Holliman with four counts of engaging in sexual acts with women over whom he had custodial authority while they were held in federal custody at the Chittenden Regional Correctional Facility in South Burlington. Court papers explained that Holliman pleaded to obstruction of justice in connection with his efforts to delete emails in which he admitted to some of the originally charged conduct. At the conclusion of the sentencing hearing the Court granted the United States’ motion to dismiss the original Indictment.
It is a federal felony for a correctional officer to engage in sexual acts with a federal inmate over whom the officer has custodial, supervisory, or disciplinary authority, while working at a federal facility or one that that contracts with the United States to house federal detainees. Consent is not a legal defense to corrections staff who engage in sexual acts with inmates. The United States Attorney has noted that this is due to several factors, including the significant power disparity between inmates and correctional staff.
Working in cooperation with the Vermont Department of Corrections, this matter was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Vermont State Police.
Holliman is represented by Mark Kaplan, Esq., of Burlington.Former Marlborough Resident Sentenced to 5 Years in Federal Prison for Robbing 5 Connecticut PharmaciesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID HANEY, 53, of Marlborough, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by three years of supervised release, for robbing five Connecticut pharmacies last year.
On November 22, 2013, HANEY was arrested on a criminal complaint charging him with the armed robbery of a CVS store located at 525 Buckland Road in South Windsor. At approximately 7:45 p.m. on September 25, 2013, HANEY entered the store and proceeded to the pharmacy counter. He then asked for the pharmacist by name, showed the pharmacist what appeared to be a firearm that was in his waistband and demanded oxycodone pills. The pharmacist gave HANEY more than 2000 oxycodone pills of different strengths and HANEY exited the store.
On February 19, 2014, HANEY pleaded guilty to one count of interference with commerce by robbery related to the South Windsor CVS robbery. In pleading guilty, HANEY also admitted that he committed similar robberies at a Walgreens on Deming Street in Manchester on September 15, 2013, a Walgreens on Main Street in Meriden on October 3, 2013, a CVS on Main Street in East Hartford on October 11, 2013, and a Walgreens on Talcottville Road in Vernon on November 9, 2013.
HANEY has admitted that he used most of the pills to fuel his own addiction to pain medication and sold the rest. He has been detained since his arrest.
Judge Underhill ordered that HANEY make restitution to the victims.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration and the South Windsor, East Hartford, Meriden, Vernon, and Manchester Police Departments, with the assistance of other state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
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(203) 821-3722 [email protected]Former Caregiver Pleads Guilty to Criminal Abuse of A Vulnerable AdultDefendant Struck and Dragged Woman with Cognitive DisabilitiesRead the Press Release
WASHINGTON - A former direct care giver, Sherifat Kofo Yusuff, has pled guilty to criminal abuse of a 50-year-old vulnerable adult, U.S. Attorney Ronald C. Machen, Jr. and District of Columbia Interim Inspector General Blanche L. Bruce announced today.
Yusuff, 53, of Washington, D.C., pled guilty on Oct. 16, 2014, in the Superior Court of the District of Columbia, to one count of criminal abuse of a vulnerable adult. The Honorable Senior Judge Susan R. Winfield sentenced Yusuff to 30 days in jail. The judge suspended the time on the condition that Yusuff successfully completes six months of probation.
According to the government’s evidence, on Feb. 19, 2014, Yusuff worked for Marjul Homes, Inc. (Marjul), which operated a residential group home for individuals with developmental disabilities. Yusuff was a direct support professional with responsibility for caring for vulnerable adults diagnosed with severe developmental and cognitive disabilities. On that day, she transported and accompanied one of the adults to MedStar National Rehabilitation Hospital, where the woman was scheduled to undergo a sleep study.
Shortly after medical staff placed electrodes and sensors on the vulnerable adult, the woman became agitated and attempted to remove those items from her body. Yusuff admitted that she became frustrated with this behavior, struck the woman with an open hand, and dragged her across the floor. These actions were captured on a camera used for the sleep study, and the video was subsequently used by law enforcement in its investigation of the case.
In announcing the guilty plea, U.S. Attorney Machen and Interim Inspector General Bruce praised the work of former Investigator Tracey Chambers, of the Office of the Inspector General Medicaid Fraud Control Unit (MFCU). They also commended the efforts of Assistant U.S. Attorneys William Schurmann and Scott Ray, who worked on the case from the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Brent Wolfingbarger of the MFCU, who jointly prosecuted the case.
14-233Florida Man Pleads Guilty to Role in $14.5 Million Dollar Telemarketing ScamRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that on October 20, 2014, Wesley Aldred, 26, of Palm Beach Gardens, FL, pled guilty to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. The investigation determined that Aldred was a telemarketer at C&G Marketing Associates, LLC, a Florida corporation that in 2009 defrauded consumers using the fictitious name, Premier Timeshare Solutions (“PTS”). In various court filings related to the PTS scam, the government has alleged that the overall scam bilked consumers of $14.5 million from over 7,000 people throughout the United States and Canada, including dozens of victims within the Southern District of Illinois. Sentencing is set for February 9, 2015, at 11:00 a.m., in East St. Louis, Illinois, where Aldred will face up to 25 years in prison, a fine of up to $250,000, and up to 5 years of supervised release.
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney William Coonan.
Felon Facing 10 Years in Prison for Illegally Possessing GunRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal gun laws, United States Attorney David J. Hickton announced today.
Kenneth Hugh Hawkins, 36, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about August 7, 2013, Hawkins possessed a firearm while being a convicted felon
Judge Cercone scheduled sentencing for February 23, 2015 at 2:15 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Erie Police Department conducted the investigation that led to the prosecution of Hawkins.
Federal Jury in Del Rio Convicts Los Zetas Cartel Drug DealerRead the Press Release
A member of a drug trafficking organization with ties to the Los Zetas Cartel operating in Piedras Negras, Mexico, faces up to life in federal prison after a jury convicted him of smuggling thousands of kilograms of marijuana into the United States from Mexico announced United States Attorney Robert Pitman, Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division, Janice Ayala, Homeland Security Investigations Special Agent in Charge, San Antonio, and Joseph M. Arabit, Drug Enforcement Administration Special Agent in Charge, Houston Division.
On October 16, 2014, jurors convicted 20–year-old Servando Benitez-Reynoso of one count of conspiracy to possess with the intent to distribute 1,000 kilograms or more of marijuana and one count of possession with the intent to distribute 1,000 kilograms or more of marijuana. The jurors found him not guilty of conspiracy to commit bulk cash smuggling and one count of bulk cash smuggling.
According to courtroom testimony, Benitez-Reynoso was the organizer for the drug trafficking organization in the United States who was responsible for coordinating the movement of marijuana loads from the Quemado, TX, and Normandy, TX, areas to San Antonio and Austin between September 27, 2012, and July 31, 2013. Benitez-Reynoso scouted for the load vehicles and coordinated the route of travel to avoid detection. Bundles of marijuana, smuggled across the river into Quemado were transported to stash houses in Eagle Pass, TX. From there, the marijuana was transported to stash houses in San Antonio and Austin where it would be further broken down and distributed to other locations. Evidence presented during the trial also showed that Benitez-Reynoso attempted to influence the testimony of witnesses.
On July 31, 2013, Benitez-Reynoso was arrested in Eagle Pass while scouting for a load of marijuana. He will remain in federal custody pending sentencing. Sentencing is scheduled for February, 2014, in Del Rio.
This case was investigated by special agents with the Federal Bureau of Investigation, Homeland Security Investigations and Drug Enforcement Administration together with the U.S. Border Patrol, U.S. Marshal Service, Austin Police Department, Houston Police Department, and Brookshire Police Department.Falmouth Man Sentenced to over 10 Years on Cocaine and Firearms ChargesRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Adam
White, 27, of Falmouth, Maine, was sentenced today in U.S. District Court to 130 months in prison for possession with intent to distribute more than 500 grams of cocaine and possession of a firearm in furtherance of a drug trafficking crime. White also was sentenced to 5 years of supervised release. White pleaded guilty in June 2014.Court records reveal that on February 12, 2013, law enforcement officers stopped
White’s vehicle in Portland after investigation had revealed that he planned to conduct a drug transaction. The officers found about 400 grams of cocaine in the trunk of the car and a handgun and loaded magazine near the driver’s seat. Officers searched White’s home in Falmouth later that day and seized about 3 kilograms of cocaine, over $13,000 in cash, other items consistent with drug trafficking and a loaded handgun.The investigation was conducted by the Maine Drug Enforcement Agency; the U.S. Drug
Enforcement Administration; the Maine State Police; and the Portland, South Portland and
Falmouth Police Departments.Fajita Grill Owners Sentenced for Hiring Undocumented Aliens and False StatementsRead the Press Release
Contacts: Julia M. Lipez and James W. Chapman, Jr.
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that brothers, Guillermo Fuentes of Westbrook, Maine and Hector Fuentes of Waterville, Maine, were sentenced today in U.S. District Court for hiring ten or more undocumented aliens in a twelve-month period and making false statements. Guillermo Fuentes was sentenced to 37 months in prison to be followed by 2 years of supervised release. Hector
Fuentes was sentenced to 30 months in prison to be followed by 1 year of supervised release. Both were ordered to forfeit over $48,000 that was seized in connection with the investigation. The defendants pleaded guilty on June 16, 2014.Court records reveal that the charges relate to the hiring of undocumented workers at the Fajita Grill restaurant in Westbrook, Maine, and to post-arrest statements the defendants made to law enforcement officers in September 2011 in which they falsely stated, among other things, that federally required documentation regarding the immigration status of employees had been properly completed.
The investigation was conducted by the U.S. Immigration & Customs Enforcement’s
Homeland Security Investigations and the U.S. Department of Labor, Office of Inspector
General.Erie Man Pleads Guilty to Child Exploitation ChargeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Graham K. Yahn, 27, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Yahn received and possessed computer images depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for February 23, 2015 at 3:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Yahn on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Yahn.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Erie Felon Sentenced to 3 Years in Prison for Illegally Possessing GunRead the Press Release
ERIE, Pa - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 36 months in jail on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on George Henry Sharp, 38.
According to information presented to the court, Sharp possessed a firearm while being a convicted felon.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Erie Police Department for the investigation leading to the successful prosecution of Sharp.
Drug Courier Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Jose Mauricio Lopez, 46, of Houston, Texas, was sentenced in federal court to 70 months imprisonment for his role in driving a load of cocaine and heroin from Texas through Baldwin County in route to Florida. Court documents reflect that Lopez’s vehicle was stopped on I-10 by a Baldwin County sheriff’s deputy for following too closely. Lopez was the sole occupant of the vehicle and the ensuing investigation resulted in the discovery of 12.9 kilograms of cocaine and 2.4 kilograms of heroin, all concealed in the fuel tank of the vehicle. Lopez entered a guilty plea to conspiracy to possess with intent to distribute cocaine and heroin in April of 2014 and was sentenced today by United States District Court Judge Callie V. S. Granade.
The judge also ordered that Lopez serve a three-year term of supervised release, to begin when he is discharged from his prison sentence, and that he pay $100 in special mandatory assessments. No fine was imposed.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, and the Drug Enforcement Administration. It was prosecuted in the United States Attorney's Office by Assistant United States Attorney Gloria Bedwell.
Dominican National Sentenced for Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national living in Peabody was sentenced to jail today on charges that he used the identity of another man to obtain unemployment benefits.
Renato De La Cruz, 40, was sentenced by U.S. District Court Judge Richard G. Stearns to 25 months in prison and ordered to pay $33,164 in restitution to the state and federal governments. In June 2014, De La Cruz was convicted following a three-day jury trial of theft of public money, use of a falsely-obtained social security number, and aggravated identity theft.
In 1993, De La Cruz entered the country illegally and purchased the identifying information of a Dominican man who was living lawfully in New York City. De La Cruz used that information to obtain a Social Security Number and then moved to Massachusetts. As an illegal alien, he was not authorized to work, but he used the Dominican man’s identity to do so. Then, between June 2011 and October 2012, De La Cruz used the Dominican man’s identity to obtain unemployment benefits to which he was not entitled.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations; Cheryl Garcia, U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Office, made the announcement today. The case is being prosecuted by Brian Pérez-Daple and Robert E. Richardson of Ortiz’s Major Crimes Unit.
Delaware Man Sentenced to 46 Months for Role in False Tax Refund ConspiracyRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Festus Frimpong, age 19, of Newark, Delaware, was sentenced today by the Honorable Leonard P. Stark, United States District Judge for the District of Delaware, to 46 months imprisonment and full restitution. The defendant pleaded guilty to violations of 18 U.S.C. § 286 (False Claims Conspiracy) and 18 U.S.C. § 1029(a)(3) (Access Device Fraud), in May, 2014. The defendant is a citizen of Ghana, and he faces deportation at the conclusion of his term of imprisonment.
The defendant participated in a tax fraud conspiracy involving the filing of more than 300 false individual federal income tax returns with the Internal Revenue Service, using stolen identities. The investigation uncovered more than 1,000 potential victims. The returns sought refunds of more than $1.7 million. The defendant’s role in the conspiracy involved receiving and distributing stolen identity information, including names, addresses, dates of birth, and social security numbers to other co-conspirators. The defendant also opened bank accounts to receive the proceeds of refunds generated by the false tax returns.
U.S. Attorney Oberly gave the following comments: “It is gratifying to see the United States District Court, Judge Stark, hand down a sentence of nearly four years of incarceration. Defendants like Mr. Frimpong deserve such sentences and subsequent deportation when applicable. The American public, the ultimate victims in schemes like this need to know that defendants who engage in activities such as this will be prosecuted as felons and incarcerated. This District is committed to vigorously prosecuting defendants like Mr. Frimpong.”
This case is the result of an ongoing investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Social Security Administration Office of the Inspector General. This case was prosecuted by Assistant United States Attorney Jennifer Welsh.
Defendant Sentenced on Federal Firearm ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Rodriquez Keandre Clayton of Demopolis was sentenced following a July 2014 guilty plea to a charge of being a prohibited person in possession of a firearm. Clayton was previously convicted of Assault, Second Degree on December 19, 2013, in the Circuit Court of Marengo County, Alabama. By virtue of this conviction Clayton is prohibited from possessing firearms or ammunition. Clayton knowingly possessed a Bryco Arms .380 semi-automatic pistol on May 3, 2014.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1). Chief United States District Court Judge William H. Steele imposed a 52 month sentence of imprisonment, to be followed by 3 years supervised release.
This case was investigated by Special Agent Nicholas P. Murphy of the Bureau of Alcohol, Tobacco, Firearms & Explosives, with assistance from members of the Demopolis Police Department.
Defendant Arraigned on Tax Fraud ChargesRead the Press Release
NEWNAN, Ga. - Damian Alarcon-Morales has been arraigned for fraudulently using the identities of Mexican nationals to obtain income tax refunds. Alarcon-Morales was indicted by a federal grand jury on October 14, 2014.
“This defendant is charged with engaging in a cross-border scheme to defraud the tax system of over $700,000 in fraudulent refunds,” said United States Attorney Sally Quillian Yates. “Attempts to profit from fraudulent tax returns are increasing, and we will continue to aggressively investigate and prosecute these cases.”
“Identity theft is a despicable crime that victimizes honest taxpayers and causes immense hardship,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Individuals who devise schemes to steal public money face federal prosecution and federal prison.”
According to United States Attorney Yates, the charges, and other information presented in court: On September 15, 2014, Alarcon-Morales was found in possession of federal income tax returns, Internal Revenue Service correspondence, Mexican identification documents, and handwritten notes. The documents contained personal identifiers that corresponded to over 200 individuals, most of whom are Mexican nationals. In most cases, the Mexican identification documents were used to obtain Individual Taxpayer Identification Numbers (“ITIN”) which are assigned to foreign nationals and others not eligible for Social Security Numbers, but who are required to file United States tax returns.
The identifiers in Alarcon-Morales’ possession were linked to at least 175 fraudulent tax returns filed between 2011 and 2014. Based upon these returns, the IRS issued over $700,000 in tax refund checks, which were dispersed to Alarcon-Morales and others. This conduct is commonly referred to as Stolen Identity Refund Fraud.
Damian Alarcon-Morales, 31, of Newnan, Ga., was arraigned before United States Magistrate Judge Justin S. Anand.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service - Criminal Investigation. If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
Assistant United States Attorney Shanya J. Dingle is prosecuting the case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
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 Newnan Division is http://www.justice.gov/usao/gan/.
Davis Man Found Guilty of Bank Fraud, Jury Finds for Forfeiture of $3.2 Million in AssetsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ROY LYNN WESBERRY, age 55, of Davis, Oklahoma was found guilty of Conspiracy to Commit Bank Fraud and four (4) counts of Bank Fraud by a federal jury on Monday, October 20, 2014. The jury also found that the defendant should forfeit $3,200,000.00 in assets as part of any sentence imposed.
The defendant was indicted in February, 2014 and charged with Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Section 1344 and 4 counts of Bank Fraud, in violation of Title 18, United States Code, Sections 1344 and 2.
The Indictment alleged that from on or about February 1, 2011, through February 28, 2011, the exact dates unknown to the Grand Jury, ROY LYNN WESBERRY, defendant herein, and others unknown and known to the Grand Jury, knowingly conspired, agreed and confederated to execute and attempt to execute, a scheme and artifice to defraud First National Bank of Davis, a federally insured national bank.
The trial began with testimony on October 15, 2014 and concluded with closing arguments and jury deliberations on Monday, October 20, 2014.
Testimony at the trial established that WESBERRY and W.A. “Dub” Moore, President of First National Bank of Davis (FNB), committed bank fraud in an attempt to hide from bank examiners, large amounts of loans to WESBERRY from First National Bank of Davis.
Additional evidence proved that during a bank examination on February 7, 2011, the Office of Comptroller of Currency (OCC) discovered the WESBERRY loans. Those loans caused the bank to be critically undercapitalized and on March 11, 2011 FNB was closed and the Federal Deposit Insurance Corporation was named receiver of the bank.
W.A. “Dub” Moore pled guilty to bank fraud on February 24, 2014. He is currently awaiting sentencing.
The charges are a result from an investigation by the United States Department of Agriculture, Office of Inspector General and the Federal Bureau of Investigation.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence investigation report. The defendant was released while awaiting sentencing.
Assistant United States Attorneys Melody Nelson and Tom Wright represented the United States.
Colorado Man Pleads Guilty to Child Pornography OffensesRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that David
William Burkman, 30, of Canon City, Colorado, pled guilty today in United States District
Court to sexually exploiting a child and transporting child pornography.According to court records, in March of this year, Burkman engaged in sexually explicit conduct with a six-year-old girl and took photographs of the conduct. In April, Burkman sent an email message to the undercover email account of a Special Agent with Homeland Security
Investigations in Maine. Attached to the email was one of the photographs of the girl. Burkman was arrested in May and a search warrant was executed at his residence. During an interview after his arrest, he admitted engaging in sexual activity with the six-year-old girl, taking photographs of the activity, and sharing the photographs online.
Burkman faces a sentence of no less than 25 years and no more than 50 years of imprisonment, a fine of up to $250,000, and supervised release of up to life on the sexual exploitation charge. He faces a sentence of no less than 15 years and no more than 40 years of imprisonment, a fine of up to $250,000, and supervised release of up to life on the transportation charge. Burkman’s mandatory minimum and maximum sentences on both charges are increased because of a prior child pornography conviction. He will be sentenced after the completion of a presentence investigation report by the United States Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations and the Colorado Springs Police Department.Chinese Restaurant Owner Pleads Guilty to Harboring Foreign WorkersRead the Press Release
KANSAS CITY, KAN. - A man who owned Chinese restaurants in Olathe and Kansas City, Mo., pleaded guilty Monday to conspiring to employ and harbor workers who were in the United States illegally, U.S. Attorney Barry Grissom said. Three other defendants also pleaded guilty to federal charges.
The following defendants entered guilty pleas:
Wei Liu, 41, Olathe, Kan., pleaded guilty to one count of conspiracy to harbor illegal aliens for private financial gain. He was the owner of Wei’s Super Buffet on South Strang Line Road in Olathe, Kan., as well as Wei’s Super Buffet No. 2 on Wornall Road in Kansas City, Mo.
Xiang Liu, 36, Olathe, Kan., pleaded guilty to one count of making a false statement to agents of the Department of Homeland Security. She was Wei Liu’s wife, and she helped manage the business.
Huiqing Liu, 25, Olathe, Kan., pleaded guilty to one count of aiding and abetting wire fraud. She is Wei Liu’s sister.
Bin Liu, 40, pleaded guilty to making a false statement to agents of the Department of Homeland Security. He lived at Wei Liu’s residence in Olathe.A fourth defendant, Huiming Liu, 43, was sentenced Monday to time served, which was approximately 10 months. She pleaded guilty to one count of failing to depart from the United States after being ordered to do so. She is Wei Liu’s sister.
In his plea, Wei Liu admitted that he employed at least 12 illegal aliens at his two restaurants. He paid them in cash and provided housing for them without charging them for the housing.
The defendants, who will be scheduled for sentencing at a later date, are facing the following penalties:
Wei Liu faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Xiang Liu faces a maximum penalty of five years and a fine up to $250,000.
Huiqing Liu faces a maximum penalty of 20 years and a fine up to $250,000.
Bin Liu faces a maximum penalty of five years and a fine up to $250,000.Grissom commended the Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Kansas Department of Labor, the Missouri Department of Labor and Assistant U.S. Attorney Scott Rask for their work on the case.
Chinese National Sentenced to 15 Months in Prison in Scheme to Fraudulently Obtain Technology Products from U.S. CompaniesRead the Press Release
Sought to Fabricate an Infrared Detector for Night Vision, Missile Detection and other Military Applications
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Zhenchun Huang, a/k/a Ted Huang, age 51, a Chinese national and naturalized U.S. citizen, formerly residing in Clarksville, Maryland, today to 15 months in prison, followed by three years of supervised release, for false personation of a federal employee and obstruction of justice, in connection with a scheme to fraudulently obtain technology products from U.S. companies for export to China.
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; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Rick Shimon, Special Agent in Charge, U. S. Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement.
According to his plea agreement, Huang worked as a contract scientist at the National Aeronautics and Space Administration’s (NASA) Goddard Space Flight Center in Greenbelt from February 1995 to June 2001. Thereafter, he consulted on a limited basis until October 2003 to provide as-needed assistance on a specific Goddard project.In April 2001, Huang incorporated Allray in Maryland for the stated purpose of forming joint ventures with Chinese governmental and private entities to research, develop and distribute telecommunication and information technology products. Though Allray’s principal place of business was listed as Huang’s place of residence, its base of operations was located in China.
During the latter part of 2003 and into early 2004, in an effort to obtain technological components for use by Allray, Huang falsely represented to three U.S. companies that he was employed by NASA and was working on a joint project between NASA and Allray. No such joint project existed. The components which Huang sought included cadmium zinc telluride (CZT) and mercury cadmium telluride (MCT) wafers, considered dual-use technology subject to U.S. export controls. These products were unrelated to Huang’s former work at NASA.
In order to make it appear as though NASA was involved in procuring these products, Huang directed that purchased items be shipped to an associate employed at Goddard; used a Goddard email account to communicate with the companies and subsequently redirect emails to his personal email account; faxed (or had faxed) a purchase order from a number associated with Goddard; and presented his former business card to companies that identified him as a contract employee of NASA/Goddard.
In late October 2003, as a result of his false representations, Huang obtained five CZT wafers from Company 1 and four silicon wafers from Company 2. Huang directed his associate working at Goddard to ship two of the CZT wafers to Company 2 so it could apply a specific growth process to add a layer of MCT to the wafers. Huang also directed his associate to buy 10 additional CZT wafers for $10,620 from Company 3.
Company 3 subsequently determined that Allray was a Chinese company headed by Huang, and that the shipping/billing address provided for the purchase was a residential address. Accordingly, Company 3 did not sell the CZT wafers, and the MCT wafers were never manufactured. If successful, the MCT growth process requested by Huang would have fabricated a type of infrared detector suitable for military applications, such as night vision and missile detection, that would have been controlled for export to China. The 10 CZT wafers sought from Company 3 were similarly controlled for export.
In the fall of 2005, Huang entered into an agreement with company X, which was co-founded by his associate, to build a prototype ultraviolet non-line-of-sight communications system for Allray. From December 2005 to April 2006 and in connection with its agreement with Huang, company X purchased 34 ultraviolet light emitting diodes (UV/LEDs) from Company 6, at a total cost of $3,556. The technical specifications of the purchased UV/LEDs, and the manner in which they were to be used, suggested an application more consistent with a covert communications device. In early May 2006, the associate demonstrated to Huang a prototype of the device being built for Allray. At that time, Huang was given two of the diodes obtained from Company 6.
On May 8, 2006, U.S. Customs officials at O’Hare International Airport in Chicago inspected Huang and his luggage just prior to his outbound flight to China. Two of the UV/LEDs purchased from Company 6 were found in Huang’s luggage. Huang made false statements regarding who had given him the diodes, what they were worth, what company had manufactured them, and how they would be used in China. He also provided false information regarding the technical specifications of the diodes.
Huang subsequently directed his wife not speak to, or ask, anyone about what had happened at the airport; to say she did not know anything if questioned; to throw away the box that had originally contained the UV/LEDS found in his luggage; and to clean out their residence. In response, his wife threw away the UV/LED box and certain Allray documents in their home. She deleted all Allray-related files from their home computer, but saved certain Allray files on a thumb drive. The government recovered some of the documents, including identifying and financial information for Allray’s investors in the United States, Allray’s IPO plan, a 2006 PowerPoint presentation charting Allray’s accomplishments in China, and an article on a short-range, non-line-of-sight ultraviolet communication device.
Upon learning of the government’s investigation of the scheme, Huang fled to China and was a fugitive until his arrest in London in December, 2013. Feng Yan, age 46, formerly of Ellicott City, Maryland, was also charged by indictment for his alleged participation in the scheme and is currently a fugitive.
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore and Department of Commerce for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christine Manuelian, who is prosecuting the case.Charleston Man Pleads Guilty to Heroin DistributionRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Jon Paul Clements, 33, of Charleston, West Virginia, plead guilty in federal court in Charleston to four counts of distributing heroin. Clements admitted that on July 7, 8, and 9, 2014, and August 19, 2014, he sold heroin to a person who was cooperating with the Metropolitan Drug Enforcement Network Team (MDENT). The drug deals took place near Ruffner Avenue on Charleston’s East End.
Clements faces up to 30 years in prison and a 6 year term of supervised release when sentenced on January 28, 2015.
MDENT was responsible for the investigation of the case. The case was prosecuted by Assistant United States Attorneys Monica D. Coleman and Eric Bacaj. This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Canadian Drug Trafficker Sentenced to 21 Years in PrisonRead the Press Release
PHILADELPHIA- Thinh Hung Le, 53, of Toronto Canada, was sentenced to 252 months in prison by the Honorable Juan R. Sanchez. On June 17, 2014, a jury found Le guilty of a variety of drug importation and distribution charges. The evidence at trial proved that Le smuggled large quantities of ecstasy pills and marijuana from Canada to Philadelphia in 2006. Le was subsequently indicted and extradited from Canada.
Specifically, investigators with the Department of Homeland Security (HSI) seized three shipments of drugs which Le sent to his customer in Philadelphia. On April 4, 2006, the HSI investigators seized approximately 105 pounds of marijuana. On July 30, 2006, the HSI investigators seized approximately 26,000 ecstasy pills containing both methamphetamine and MDMA. On October 23, 2006, the HSI investigators seized approximately 10,000 ecstasy pills. In order to determine Le’s identity, the HSI investigators requested assistance from the Toronto Police Service. Thereafter, two undercover Toronto police law enforcement officers met with Le pretending to be drug dealers from Philadelphia. Le explained to the undercover officers that he could supply them with 100,000 ecstasy pills within three days and provide a custom “brand” for the pill. Le further explained that he could manufacture the pills so that the high would last either 4 hours or 6 hours.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations in conjunction with the Toronto Police Service. Additional assistance was provided by the DEA, the Philadelphia Police Department, the Pennsylvania State Police, the Royal Canadian Mounted Police, and the York (Canada) Regional Police Department.
The case was prosecuted by Assistant United States Attorney Robert Livermore. Extradition assistance was provided by the United States Department of Justice, Office of International Affairs.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525California Man Sentenced to 137 Months for Possession of Counterfeit Access Devices and Firearm PossessionRead the Press Release
BOISE – Lajai Lamar Pridgette, 29, of Sacramento, California, was sentenced today in United States District Court to 137 months in prison followed by three years of supervised release for possessing counterfeit access devices; possession of counterfeit access device making equipment; possession of a firearm by a prohibited person; and transportation of a stolen vehicle, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Pridgette to pay $13,709.16 in restitution, as well as forfeiture of contraband and property. He was found guilty on all counts after a five- day jury trial in July.
According to evidence presented at trial, Lajai Pridgette was arrested the evening of October 30, 2013, by an Idaho State Trooper in Gooding County who was on the lookout for a suspect driving a Ford Mustang involved in two separate drive-by shootings on Interstate 84 earlier that evening. Pridgette was the sole occupant of the Mustang. While searching the Mustang, law enforcement officers found the firearm that had been used in the two shootings. One shot had narrowly missed occupants of a car in Ada County; the other narrowly missed the occupant of a pickup truck in Elmore County. As a convicted felon, Pridgette was prohibited from possessing the firearm. Also during the search of the Mustang, officers found 67 counterfeit and unauthorized credit cards, a credit card embosser, a stolen laptop computer, and a magnetic strip reader/writer. The 2013 Mustang that Pridgette was driving was reported stolen by a rental car company.
“Justice is well-served by this serious and significant sentence,” said Olson. “Lajai Pridgette, through both his violent conduct and his intent to steal from others with fraudulent credit cards, posed a serious threat to our Idaho communities. That threat was ended through outstanding, cooperative police work by the Idaho State Police, the Elmore County Sheriff’s Office, the United States Secret Service, and the Bureau of Alcohol, Tobacco and Firearms. I commend the thorough investigation and detailed prosecution of this case.”
Businessman Admits Stealing $100,000 Worth of Water from the Jersey City Municipal Utilities AuthorityRead the Press Release
NEWARK, N.J. – The owner of Reliable Wood Products (Reliable Wood) today admitted his role in a conspiracy to steal at least $100,000 worth of water from the Jersey City Municipal Utilities Authority (JCMUA), U.S. Attorney Paul J. Fishman announced.
Nicholas Vene, 43, of Holmdel, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of conspiracy to commit mail fraud.
According to the documents filed in this case and statements made in court:
From January 2007 through March 31, 2012, Vene and others diverted the water flowing from a Jersey City water pipe to 1 Caven Point in Jersey City and away from the water meter on that pipe. United Water New Jersey was responsible for collecting payment on behalf of the JCMUA for water used by residents and businesses in Jersey City, and Vene’s actions resulted in United Water obtaining a false calculation of the volume of water used at 1 Caven Point by under-reporting such usage. At 50 Caven Point, another Reliable Wood location, Vene was aware of the use of a water pipe that was unmetered. In early 2012, Vene caused monthly payments by check to be mailed to the JCMUA that did not accurately cover the actual cost of water used by Reliable Wood. He and others defrauded the JCMUA of at least $100,000.
The conspiracy charge to which Vene pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 26, 2015.
U.S. Attorney Fishman credited special agents from the FBI, under direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea. He also thanked the Hudson County Prosecutor’s Office for its role in the case.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office, Special Prosecutions Division, in Newark.
14-379
Defense counsel: Joseph A. Hayden Jr. Esq., Roseland, N.J.Vene, Nicholas Information
Boise Man Pleads Guilty to Bankruptcy Fraud for Concealing Interest in BusinessRead the Press Release
BOISE – Steven Gregory, 66, of Boise, pleaded guilty today in United States District Court to one count of bankruptcy fraud by asset concealment, U.S. Attorney Wendy J. Olson announced. Gregory’s sentencing is scheduled for January 7, 2015, before Chief U.S. District Judge B. Lynn Winmill.
According to the plea agreement, Gregory filed bankruptcy in 2010 and during that bankruptcy proceeding, knowingly and fraudulently concealed a five percent ownership interest in a company. During the pendency of the bankruptcy case, Gregory demanded, and received, a payout of that interest in the amount of $330,464.19. However, Gregory failed to disclose both the ownership interest and the payment in his filed bankruptcy schedules and statements. Gregory intentionally and fraudulently concealed the interest and the payment from the Bankruptcy Court, the trustee, and his creditors.
A violation of bankruptcy fraud concealment is punishable by a term of imprisonment of up to five years, a term of supervised release of not more than three years, a maximum fine of $250,000, and a special assessment of $100. The Court also may order restitution to the victims of the crime.
The case was investigated by the Internal Revenue Service.
Belchertown, Ma Man Sentenced to 41 Months in Federal PrisonRead the Press Release
Central Massachusetts man sentenced to federal prison for distributing heroin in
North CountryPLATTSBURGH, NEW YORK – On October 14, 2014, ERNESTO MATOS, 33, of Belchertown, Massachusetts, was sentenced to 41 months in federal prison by Senior United States District Court Judge Thomas J. McAvoy in United States District Court in Albany, New York announced United States Attorney Richard S. Hartunian and Drug Enforcement Administration Acting Special Agent in Charge James J. Hunt.
“Heroin addiction and overdoses have been on the rise in our district. Eliminating the supply and making it more difficult to obtain are two essential steps to reducing the tragedies of addiction and overdose,” stated United States Attorney Richard S. Hartunian. “We will continue to work with our federal, state and local law enforcement partners to rid our communities of this horrible scourge.”
DEA Acting Special Agent in Charge Hunt stated, “Heroin has hit our towns hard. Over one hundred people die a day due to opioid overdoses and this sentencing exemplifies law enforcement’s commitment to ridding our streets of heroin and diverted pain medication.”
“With the assistance of the Drug Enforcement Administration agents, we were able to dismantle a drug distribution organization that was responsible for bringing a large amount of heroin to our area,” said Chief Christopher Premo, Malone Village Police Department. “We were also able to trace the heroin back to Holyoke MA, identifying the supplier to local distributers, further interrupting the flow of illegal drugs.”
Matos pled guilty in May 2014 to conspiracy to possess with intent to distribute and to distribute heroin. As part of that plea agreement, Matos admitted to distributing at least 100 grams of heroin. The charges stemmed from Matos’ role as a supplier of heroin to local dealers in the Malone area. The sentence also includes a three-year term of supervised release following Matos’ incarceration and a $100 special assessment.
The case was investigated by the Drug Enforcement Administration, New York State Police, Massachusetts State Police, Belchertown Police Department, Malone Village Police Departmentand the Franklin County District Attorney’s Office. Assistant United States Attorney Katherine Kopita prosecuted the case.
Baltimore Cocaine Dealer Resentenced to over 10 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Travis Gaines, age 34, of Baltimore, Maryland, today to 130 months in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine. Judge Blake also found that Gaines is a career offender based on previous narcotics convictions.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According their plea agreements, Gaines and Bolden conspired with Shawn Malone, Karl McDonald and others to obtain cocaine from sources of supply in Arizona and Texas and to distribute those drugs in Baltimore. Once the cocaine arrived in Baltimore, it would be distributed to Gaines and other wholesale customers who would redistribute it to their customers. McDonald converted the powder cocaine to crack cocaine for street level distribution and operated a distribution shop in Baltimore where the crack cocaine was sold. During the course of the investigation DEA intercepted the telephone and electronic communications of several members of the conspiracy. In addition, as a result of several search warrants executed on June 6, 2013, the DEA recovered approximately 250 grams of cocaine, as well as packaged cocaine, from the main stash house of the organization.
Gaines and Bolden admitted that as part of the conspiracy they were responsible for the distribution of between five and 15 kilograms of cocaine.
On August 14, 2014, U.S. District Judge William D. Quarles, Jr. sentenced Gaines to 151 months in prison, but vacated the sentence a few days later and the case was reassigned to Chief Judge Blake.
Karl McDonald, age 30, and Antoine Bolden, age 37, both of Baltimore, pleaded guilty to their roles in the conspiracy and were sentenced to 151 months and 84 months in prison, respectively. Shawn Malone, age 31, of Baltimore, pleaded guilty to his role in the drug distribution conspiracy and is awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Aplington Man Sentenced to over 16 Years for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced today to over 16 years in federal prison.
Jeremiah Romo, age 21, of Aplington, Iowa, received the sentence after a May 27, 2014, guilty plea to one count of possession of child pornography. At the plea hearing, Romo admitted that he possessed child pornography, including one or more depictions of prepubescent children. He also admitted that, in 2008, he was adjudicated delinquent for sexual abuse in the second degree.
Romo was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Romo was sentenced to 200 months’ imprisonment. A special assessment of $100 was imposed, and Romo must also serve a 20-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Butler County Sheriff’s Office, and the Champaign County, Illinois, Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-3011.