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Thursday 14 August 2014
Providence Woman Sentenced to 4 Years in Federal Prison for Trafficking Cocaine and Crack Cocaine in South Kingstown and NarragansettRead the Press Release
PROVIDENCE, R.I. – Ashley Sekator-Graham, 31, of Providence, was sentenced today to 48 months in federal prison for her role in a drug trafficking conspiracy to distribute cocaine and crack cocaine in South Kingstown and Narragansett, announced United States Attorney Peter F. Neronha, South Kingstown Police Chief Vincent Vespia, Jr., Narragansett Police Chief Dean F. Hoxsie, and Michael Ferguson, Acting Special Agent in Charge of the DEA’s New England field division.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Sekator-Graham to serve 5 years supervised release upon completion of her prison term. Sekator-Graham pleaded guilty on April 16, 2014, to one count each of possession of crack cocaine with the intent to distribute and conspiracy to possess cocaine with the intent to distribute.
According to court documents and information presented to the court, an investigation by South Kingstown Police, Narragansett Police and the Rhode Island DEA Drug Task Force in July 2013 into the distribution of cocaine and crack cocaine in South Kingstown and Narragansett resulted in the seizure of nearly 109 grams of crack cocaine, 200 grams of cocaine powder, two firearms, $93,701 in cash, and the arrest on July 18, 2013, of Ashley Sekator-Graham and her husband, Damon Graham.
According to court documents, the investigation, which began in early July 2013, included electronically monitored drug sales which led to the execution of court authorized search warrants on July 18, 2013, at the couple’s then Narragansett residence and at a self-storage unit in Narragansett. Law enforcement seized 108.8 grams of crack cocaine, a 9mm pistol, ammunition and $3,751 in cash from the couple’s residence and 201 grams of cocaine, a .38 caliber revolver, hollow-point ammunition and a safe containing $89,950 in cash from the self-storage unit.
Damon Graham, 34, pleaded guilty in U.S. District Court on April 23, 2014, to one count each of possession with the intent to distribute 28 grams or more of crack cocaine, conspiracy to possess with the intent to distribute 28 grams or more of crack cocaine, possession with the intent to distribute cocaine, conspiracy to possess with the intent to distribute cocaine, and two counts of being a felon in possession of a firearm. He is scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on October 17, 2014.
The cases are being prosecuted by Assistant U.S. Attorney Pamela E. Chin, with the assistance of Assistant U.S. Attorney Paul F. Daly, Jr.
Rhode Island State Police and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted South Kingstown Police, Narragansett Police and the Rhode Island DEA Drug Task Force in the investigation of this matter.
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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]Pottsboro TX Man Sentenced to 27 Months, $685,000.00 Restitution for Wire FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JIMMY DALE STRAHAN, age 63, of Pottsboro, Texas, was sentenced on July 30, 2014, to 27 months imprisonment, followed by 36 months of supervised release for Wire Fraud, in violation of Title 18, United States Code, Section 1343. STRAHAN was also ordered to pay $685,347.25 in restitution.
The charge arose from an investigation by the Durant Police Department and the United States Secret Service. The defendant was indicted in June 2013 and entered a plea of guilty in July 2013.
The Indictment alleged on or about March 12, 2010, in the Eastern District of Oklahoma, the defendant, caused to be transmitted by means of wire communication in interstate commerce the signals and sounds from a bank account at Shamrock Bank, Caddo, Oklahoma, transferring the funds to a bank account at Landmark Bank, Pottsboro, Texas.
The investigation revealed the STRAHAN, President of Yellowjacket Energy Services, Inc. (YES) marketed and sold shares in YES by falsely representing to potential investors that the company was managed by an Executive Management Team. STRAHAN prepared a fraudulent document that listed the Management Team, which consisted of STRAHAN and seven other individuals with strong oil and gas experience including an attorney, accountant, banker, engineer and geologist, when in fact none of these individuals were owners or advisors to the company. STRAHAN also falsely represented the profitability of the company in an effort to attract investors.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Melody Nelson represented the United States.
Port Arthur Woman Guilty in Mail Fraud ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 32-year-old Port Arthur, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shawnta Rene Bell Jones pleaded guilty to conspiracy to commit mail fraud today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, from November 2006 to August 2013, Jones was involved in a conspiracy with others to defraud insurance providers and other businesses by staging automobile collisions and then submitting claims for property damage and personal injury by U.S. mail and other carriers. On Mar. 4, 2012, Jones and others staged an automobile accident in Port Arthur and then submitted fraudulent insurance claims to Farmers Insurance and Old American Mutual Insurance Company. As a result of the fraudulent claim, payment was made by U.S. mail to defendants. Jones’ received less than $5,000 for her part in the conspiracy.
On June 4, 2014, a federal grand jury returned an indictment charging Jones and Port Arthur residents James Lee Jones, Sr., 46; Charles Christopher Mosley, 34; Martin James Eaglin, 39; Edmund Hurts III, 27; and Kristopher Bernard, 28, with conspiracy to commit mail fraud and 17 counts of mail fraud.
Jones faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation, Port Arthur Police Department, National Insurance Crime Bureau and Farmers Insurance Investigations. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice and Special Assistant U.S. Attorney Catherine Cockrell.
Philadelphia Man Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 34-year-old Philadelphia man pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to participating in a conspiracy to distribute heroin in the Hazleton area of Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Edwin Laureano-Suarez, admitted to conspiring with others to distribute heroin between May 2014 and June 18, 2014.
Laureano-Suarez was charged in a criminal Information filed on August 12, 2014, as a result of an investigation by the Federal Bureau of Investigation and Scranton Police.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing will be scheduled after the completion of the pre-sentence report.
Laureano-Suarez faces up to 20 years in prison and a $1 million fine.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****Pennsylvania Couple Sentenced to Prison for Using Stolen Identities to Scam Student Loan Money from Online UniversitiesRead the Press Release
CAMDEN, N.J. – An East Stroudsburg, Pennsylvania, couple was sentenced to prison today for stealing $272,247 in student loan proceeds from Liberty University and American Public University by using stolen identities to direct the money to addresses where they could intercept it, U.S. Attorney Paul J. Fishman announced.
Stephanie Mitchell, 37, and Ronzell Mitchell, 38, were sentenced to 12 months and 28 months in prison, respectively. They previously pleaded guilty before U.S. District Judge Renée Marie Bumb to separate informations charging each with one count of conspiracy to commit mail fraud. Judge Bumb imposed the sentences today in Camden federal court.
According to documents filed in this case and statements made in court:
From Aug. 19, 2010, through March 21, 2012, the Mitchells fraudulently obtained U.S. Department of Education (ED) funds for their own use. Stephanie Mitchell regularly used a box at a UPS Store located in Montvale, New Jersey, that was opened using the name and driver’s license of another person. The couple then contacted online universities Liberty and American and posed as students for whom student loans had been issued, causing the proceeds of numerous credit balance checks and debit cards to be redirected to the UPS Store and a vacant house located in Stroudsburg, Pennsylvania.
Stephanie and Ronzell Mitchell admitted several specific instances in which they redirected student loans intended for others to addresses they controlled, fraudulently obtaining $272,247 in ED funds.
In addition to the prison term, Judge Bumb sentenced the Mitchells each to three years of supervised release, fined them each $35,000, and ordered them to pay total restitution of $272,247, which has been paid in full.
U.S. Attorney Fishman credited special agents of the ED Office of the Inspector General, Northeastern Regional Office, under the direction of Special Agent in Charge Brian Hickey; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, and special agents of the U.S. Secret Service, under the direction of James Mottola, Special Agent in Charge of the Newark Field Office, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
14-293Defense counsel:
Ronzell Mitchell: Paul Brickfield Esq., River Edge, N.J.
Stephanie Mitchell: Susan Cassell Esq., Ridgewood, N.J.New York Heart Center to Pay More Than $1.33 Million to Settle Allegations of False Claims Act and Stark Law ViolationsRead the Press Release
Cardiology Practice Allegedly Compensated Physicians for Improper Referrals
ALBANY, NEW YORK: Cardiovascular Specialists, P.C., d/b/a New York Heart Center (NYHC) – a group practice of cardiologists with offices throughout central and northern New York – has agreed to pay the United States $1,336,636.98 plus interest to resolve allegations that it violated the False Claims Act and the Physician Self-Referral Law (commonly known as the Stark Law) by knowingly compensating its physicians in a manner that violated federal law, announced United States Attorney Richard S. Hartunian.
The Stark Law is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives that encourage referrals for unnecessary services, which drive up health care costs for Medicare beneficiaries and the Medicare program. The law prohibits physicians from referring Medicare beneficiaries to health care providers, including providers in their own group medical practices, for certain services if their financial relationships with the provider do not fall within an exception to the Stark Law. In the case of financial relationships between a medical practice and its physicians, the exceptions do not permit practices to compensate physicians in a manner that directly takes into account the volume or value of the physician’s referrals for services that are not personally performed by the ordering physician. If a group’s financial relationship with a physician does not satisfy an exception, the group cannot bill Medicare for the physician’s prohibited referrals.
The settlement announced today resolves allegations that, from September 2007 through August 2008, compensation for each NYHC partner-physician was determined using a formula that took into account the volume or value of that physician’s referrals for nuclear scans and CT scans, in violation of the Stark Law and the False Claims Act. The government’s investigation revealed that NYHC adopted this formula with knowledge that it could violate the Stark Law.
United States Attorney Hartunian said: “Today’s settlement is another example of this office’s commitment to ensure that services paid for by federal health care programs are based on the best interests of patients rather than the financial interests of referring physicians. The United States Department of Health and Human Services’ Office of Inspector General should be commended for bringing this issue to light and for its outstanding investigation.”
“Medical decisions should always be made on the basis on what’s best for the patient’s health, not the physician’s finances. The compensation system in place in this case had the potential to influence medical judgment, which would be unacceptable,” said Special Agent in Charge Thomas O’Donnell of the Department of Health and Human Services Office of Inspector General (HHS-OIG), New York region.
The investigation and settlement were the result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York and HHS-OIG, with the assistance of the Department of Justice’s Civil Division. Locally, the United States was represented by Assistant United States Attorney Adam J. Katz.
New Jersey Man Sentenced to Prison for Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 37-year-old New Jersey man was sentenced to 14 months in federal prison yesterday by U.S. District Court Judge Malachy E. Mannion for possession with intent to distribute heroin in Kingston, Pennsylvania, on January 3, 2014.
According to United States Attorney Peter Smith, the defendant, George Wormley, on May 1, 2014, pleaded guilty to committing the offense.
Wormley was indicted by a grand jury on March 25, 2014, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kingston Police.
Judge Mannion also ordered Wormley to be placed on supervised release for three years after serving his prison sentence, and to pay a $100 special assessment.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Muskogee Man Sentenced to 60 Months for Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOSHUA RAY HIGGINS, age 27, of Muskogee, Oklahoma, was sentenced to 60 months imprisonment, followed by 4 years of supervised release for Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The charge arose from an investigation by the Muskogee Police Department and the Drug Enforcement Administration. The defendant was indicted in December 2013 and pled guilty in February 2014.
The Indictment alleged that on or about November 15, 2013, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Merritt Island Resident Arrested for Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the arrest and criminal complaint charging James Otis Liptak (36, Merritt Island) with possession and distribution of images depicting child pornography. If convicted, Liptak faces a maximum penalty of 20 years in federal prison.
According to the complaint, Liptak used his computer and peer-to-peer software programs to search the Internet for, download, share and distribute images of child pornography.
A complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Brevard County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Bruce S. Ambrose.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
Member of Cherry Hill Group ‘Little Spelman’ Sentenced to 35 Years in Prison for Racketeering Conspiracy, Including Drug Dealing and Two MurdersRead the Press Release
Cherry Hill Area Shootings and Murders Attributed to Rival Drug Gangs
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Davon Martin, age 26, of Baltimore, Maryland today to 35 years in prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise, related to his drug dealing and violence in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”
According to his plea agreement, from at least 2003 to 2013, Davon Martin was a member of a group known as “Little Spelman” in the “down the hill” area of Cherry Hill. This group committed acts of robbery, homicides, non-fatal shootings and drug distribution, to include crack cocaine, heroin, cocaine and marijuana. From 2009 to 2011, Martin and Dewayne Jones, another member of Little Spelman, operated a crack cocaine distribution “shop” out of an apartment located on Round Road. Martin and others sold at least two kilograms of crack cocaine from the apartment on Round Road. On at least one occasion, while in possession of a firearm, Martin robbed an individual who had sold him some bad cocaine. Martin admitted he has also committed other robberies related to his drug distribution.Martin admitted that on January 20, 2011, he shot and killed Rhidell Price, a member of a rival group operating in Cherry Hill known as “Up Da Hill,” in the rear of 2900 Denham Circle. After receiving a call that Price was in the area, Jones drove Martin to Denham Circle where Rhidell Price was getting out of a vehicle parked on the street. Martin got out of the vehicle and began shooting at Price, chasing after Price and ultimately killing him. Martin killed Price in retaliation for Martin and Jones being shot at by Up Da Hill members a few days earlier. Dewayne Jones was subsequently shot and killed on August 28, 2011.
Two days after Martin killed Price, on January 22, 2011, Little Spelman associate Harry Hicks was shot and killed by Up Da Hill members in retaliation for Price’s murder. On April 9, 2011, Martin shot and killed Up Da Hill member Dwight Taylor at a barbershop on W. Saratoga Street in Baltimore, in retaliation for Hicks’ murder. During the murder, Martin was wearing a black jacket and a black mask which he discarded in a nearby dumpster on Clay Street. Both the mask and jacket were recovered by police from the dumpster. The DNA recovered from both the face mask and the jacket matched Martin’s DNA. A ballistics comparison of the .45 caliber firearm that Martin used to kill Taylor revealed that it was the same gun used on January 28, 2011 by Dominic Hope, another Little Spelman associate, and the former leader of Little Spelman, to shoot Up Da Hill member Antione White, who was leaving the funeral of Rhidell Price. Dominic Hope was subsequently shot and killed on January 20, 2012.
Earlier this year, Martin pleaded guilty in Baltimore City Circuit Court to first degree murder and use of a firearm in a crime of violence for the fatal shooting of Dwight Taylor. Martin is scheduled to be sentenced in that matter on September 12, 2014.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Brooke Carey, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Medical Assistant Pleads Guilty After Stealing Patients’ Identities from the Memorial Healthcare System DatabaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that La Toya Yvette Tillman, 33, of Hollywood, pled guilty today to one count of possessing fifteen or more unauthorized access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for October 24, 2014 at 9:30 a.m. before U.S. District Judge Darrin P. Gayles. At sentencing, Tillman faces up to ten years in prison for the access device charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
According to court documents, Tillman, who worked as a medical assistant at Gastroenterology Consultants in Hollywood, confessed to accessing the Memorial Healthcare System database through her computer at work to steal patient identities, including names, dates of birth, and social security numbers, so that she could sell them. She sold an individual approximately 2,000 identities for $1 each, and the individual told her that he used the identities to file fraudulent tax returns. In addition, in her car, Tillman had a list of 114 identities, including names, dates of birth, and social security numbers. Tillman knew that the victims did not authorize her to possess their personal information.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
McAlester Man Sentenced to 168 Months for Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DANIEL RAY JOHNSON, age 32, of McAlester, Oklahoma, was sentenced to 168 months imprisonment, followed by 5 years of supervised release for Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The charge arose from an investigation by the District 18 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The defendant was indicted in March 2014 and pled guilty in May 2014.
The Indictment alleged that from on or about January 6, 2014, to January 11, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 50 grams or more of actual methamphetamine, a Schedule II Controlled Substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Marydel Woman and 3 Others Indicted on Charges Related to A Scheme to Embezzle over $1 Million from Her EmployerRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted four individuals in connection with a scheme to steal over $1 million from a consulting company. The following individuals face conspiracy and wire fraud charges:Janice McCumbie, age 45, of Marydel, Maryland;
Leonard Smedley II, age 35, of Capitol Heights, Maryland;
Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania; and
Brian Hooper, age 42, of Woodbridge, Virginia.
The indictment was returned on August 6, 2014, and unsealed today upon the arrest of the defendants.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the indictment, McCumbie worked for a global consulting business that served clients in various industries and had offices in Maryland and elsewhere. Clients paid large retainers to secure consulting services. The consulting company would issue refund checks to the clients in certain circumstances, including when a client’s retainer exceeded the amount of work that the consulting company actually performed or when the client made duplicate payments to the consulting company. The consulting company assigned the Accounts Receivable group (the AR group) and the Accounts Payable group (the AP group) to handle the refund process. McCumbie worked for the AR group and her duties included coordinating client refunds.
The 11-count indictment alleges that between August 2009 and November 2013, McCumbie created and submitted false documentation to the consulting company’s AP group, falsely representing that refund checks should be issued to Gayleard and Smedley. McCumbie allegedly caused the consulting company to issue at least 39 fraudulent refund checks, totaling, $848,024.48, to Smedley, who was not a client of the consulting company. The indictment alleges that Smedley cashed the fraudulent checks and shared the proceeds with McCumbie and Hooper, who was a former employee of the consulting company. The indictment alleges that McCumbie caused 17 fraudulent refund checks, totaling $217,695.57, to be issued to her niece, Gayleard, who cashed the checks and shared the proceeds with McCumbie.
The indictment seeks forfeiture of at least $1,065,720, believed to be the proceeds of the wire fraud conspiracy.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each of 10 counts of wire fraud. Janice McCumby, Leonard Smedley II, and Brian Hooper have all had an initial appearance in U.S. District Court in Greenbelt. Amber Gayleard had her initial appearance in U.S. District Court in the Middle District of Pennsylvania. All four defendants were released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and David I. Salem, who are prosecuting the case.
Man Who Stole Explosives from Forest Service Pleads GuiltyRead the Press Release
BILLINGS - A Wyoming man who stole over 500 pounds of explosives from the U.S. Forest Service has pleaded guilty to federal charges arising from the theft. Budd Nesius, a 33-year old resident of Wheatland, Wyoming pleaded guilty to possession of stolen explosives. He faces 10 years in prison, $250,000 in fines and 3 years supervised release. Sentencing has been set for December 4, 2014 in Billings before U.S. District Judge Susan Watters. Nesius is being detained pending sentencing.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government told the court that in April 2013 in Red Lodge, the defendant knowingly possessed approximately 500 pounds of stolen explosive materials. On the weekend of April 26, 2013, Nesius met a female friend at the Yodeler Motel in Red Lodge to go camping. After picking up the female, the two drove into the mountains. At one point, the two of them split up and she returned to Red Lodge to get food. Nesius continued driving around looking for a place to camp and eventually drove down a dirt road and arrived in the area of a U.S. Forest Service ("USFS") bunker which contained explosives. This explosives magazine/bunker is located several miles west of Red Lodge on USFS property. Nesius saw signs in the immediate vicinity warning of the explosives. Nesius later joined back up with the woman and told her that he intended to break into the bunker he found and steal explosives. Nesius thought he might be able to sell the explosives and make a little money.
The female parked at the bottom of the dirt road leading up to the bunker to be a "lookout." Shortly before dark, Nesius walked down to the bunker and cut the locks with a pair of bolt cutters. Once the door was open, Nesius took one box of explosives and attempted to walk back to where his truck was parked above the bunker. Because the explosives box was heavy, he left the box there and returned to his truck. Nesius then drove down next to the bunker, where he loaded approximately 10 boxes of explosives into the back of his truck.
This amounted to more than 500 pounds of explosives and was enough to fill up the front area of his truck bed. Once he loaded up the stolen explosives, Nesius left the area and met the female back in Red Lodge. Nesius spent that night in a hotel/motel in Red Lodge. Nesius left his truck, loaded with the stolen explosives, backed up against a wall at a local business so that the truck topper would not open. Nesius parked the truck in this manner because he did not want the truck with the stolen explosives near him and because his truck topper did not lock. Nesius also covered the boxes of explosives with a tarp to conceal them. The following morning Nesius transported the stolen explosives from Red Lodge to his hometown of Wheatland, Wyoming. Sometime thereafter, Nesius attempted, on at least one occasion, to sell the stolen explosives.
On or about June 7, 2013, evidence and information led ATF agents to visit Nesius' home in Wheatland, Wyoming where they made contact with Nesius' mother in the late afternoon/evening hours. Nesius was not home at the time. Nesius' mother consented to let the ATF agents search her home and several other buildings on the property. No explosives or evidence of criminal activity was located. The next morning, however, law enforcement received information that a concerned citizen had discovered boxes of explosives abandoned approximately a quarter mile east of Wheatland reservoir. The explosives were approximately 15 feet off the roadway stacked in boxes. The responding sheriff deputies observed that the explosives had USFS stickers on some of the cardboard boxes and had been recently discarded there because the boxes had not been damaged by the weather. An examination of the serial numbers on the recovered explosives determined that these were in fact the same stolen explosives taken from the USFS in Red Lodge, Montana. The location where the explosives were recovered was approximately 35 miles south and west of Nesius' Wheatland, Wyoming residence. After ATF agents visited Nesius' home, his brother called him to tell him about the ATF agent's visit. The defendant then told his brother that there were stolen explosives concealed on their family property in a travel trailer of Highway 34. The brother agreed to drive to the location of the stolen explosives and to load them into his truck to dispose of them. The brother then moved the explosives down Highway 34 and unloaded them on the side of the road in the middle of the night.
This volume of explosives in the wrong hands is an obvious threat to public safety," said Michael Cotter, U.S. Attorney for the District of Montana. "Our office is pleased to have played a role in holding Nesius accountable for his dangerous and intentional decision to steal over 500 pounds of explosives."
We will vigorously pursue those responsible for such acts, dedicating any and all investigative resources needed in order to bring these matters to a successful conclusion," said Ken Bray, ATF's Resident Agent in Charge in Montana. "All the stolen explosives in this case have been recovered. The public can rest assured that this matter has been resolved."
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms.
Man Sentenced for Clean Air Act Violation Related to the Kensington Towers ProjectRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Evan Harnden, 45, from North Tonawanda, N.Y., who was convicted of a misdemeanor charge of being an accessory after the fact to a false statement under the Clean Air Act, was sentenced to one year probation by District Court Judge Richard J. Arcara.
Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was employed by JMD Environmental, Inc. (JMD) as an air sampling technician and a project monitor, and was certified by the New York State Department of Health to conduct asbestos project monitor and air sampling duties. From June 9, 2009 to January 11, 2010, co-defendants Johnson Contracting of WNY, Inc. (Johnson Contracting), Ernest Johnson, and Rai Johnson, conducted asbestos abatement activities at six buildings at the Kensington Towers Apartment Complex in Buffalo
As part of the plea, the defendant admitted that during the abatement for building A-1, Ernest Johnson, Rai Johnson, and workers employed by them violated the Clean Air Act asbestos work practice standards by: (i) failing to adequately wet Regulated Asbestos during stripping and removal operations; (ii) failing to ensure that Regulated Asbestos remained wetted until placed in leak-tight containers; (iii) causing Regulated Asbestos to be dropped down holes cut through the floors in Building A-1; and (iv) failing timely to dispose of all Regulated Asbestos stripped and removed from building A-1. During the abatement process, the defendant aided and abetted the above-described violations by conducting visual inspections and final clearance air sampling that indicated no violations of the asbestos work practice standards had occurred.
This is the third defendant to be sentenced as part of the Kensington Towers asbestos abatement project. In addition to Ernest and Rai Johnson, other defendants who have been convicted include JMD project monitors Brian Scott and Chris Coseglia and current and former public officials responsible for certifying the project’s compliance with applicable laws and regulations, including Donald Grzebielucha, William Manuszewski, and Theodore Lehmann. The remaining defendants will be sentenced before U.S. District Court Judge Richard J. Arcara.
"The health dangers associated with asbestos are well known," said Vernesa Jones-Allen, Special Agent in Charge of EPA's criminal enforcement program in New York. "The defendant admitted that he falsified inspection reports, which indicated to authorities that the demolition work was performed according to regulations and that asbestos contaminated materials had been removed safely. Today's sentencing should serve notice that EPA and its partner agencies remain committed to tough enforcement of our nation's environmental laws."
The conviction was the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Special Agent-In-Charge, William V. Lometti; Special Agents of the Federal Bureau of Investigation; Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Rene Febles; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.Man Sentenced to 10 Years in Prison on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – On Wednesday, August 13, 2014, Chief U.S. District Judge Frank D. Whitney sentenced Charles Kevin Bridges to 121 months in prison on federal child pornography charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Bridges was ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison. Judge Whitney also ordered Bridges to pay $3,000 as restitution to a child pornography victim.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division and Chief Stacy Conley of the Gastonia Police Department.
In March 2014, Bridges, 56, of Kings Mountain, N.C. pleaded guilty to one count of receiving child pornography and one count of possession of child pornography. According to filed documents and statements made in court, in January 2013, a law enforcement officer conducting an investigation downloaded images and videos containing child pornography from Bridges’ computer, using a peer-to-peer network. Law enforcement executed a search warrant at Bridges’ residence and seized a laptop computer and a USB drive. Court records indicate that a forensic examination revealed that Bridges possessed an extensive collection of images and videos depicting children as young as toddlers engaging in sexual acts with adults.
Bridges has been in federal custody since his bond was revoked in March 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and Gastonia Police department with assistance from the Cleveland County Sheriff’s Office. Assistant U.S. Attorneys Cortney S. Randall and David A. Thorneloe of the U.S. Attorney’s Office handled the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Man Sentenced to 10 Years in Prison on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – On Wednesday, August 13, 2014, Chief U.S. District Judge Frank D. Whitney sentenced Charles Kevin Bridges to 121 months in prison on federal child pornography charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Bridges was ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison. Judge Whitney also ordered Bridges to pay $3,000 as restitution to a child pornography victim.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division and Chief Stacy Conley of the Gastonia Police Department.
In March 2014, Bridges, 56, of Kings Mountain, N.C. pleaded guilty to one count of receiving child pornography and one count of possession of child pornography. According to filed documents and statements made in court, in January 2013, a law enforcement officer conducting an investigation downloaded images and videos containing child pornography from Bridges’ computer, using a peer-to-peer network. Law enforcement executed a search warrant at Bridges’ residence and seized a laptop computer and a USB drive. Court records indicate that a forensic examination revealed that Bridges possessed an extensive collection of images and videos depicting children as young as toddlers engaging in sexual acts with adults.
Bridges has been in federal custody since his bond was revoked in March 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and Gastonia Police department with assistance from the Cleveland County Sheriff’s Office. Assistant U.S. Attorneys Cortney S. Randall and David A. Thorneloe of the U.S. Attorney’s Office handled the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Lawrence County Man Pleads Guilty to Drug Law ViolationRead the Press Release
PITTSBURGH - A resident of Wampum, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Jordan Viccari, 24, pleaded guilty to one count before Senior United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that from in and around May 2013, and continuing thereafter to in and around October 2013, Viccari conspired with others to distribute and possess with the intent to distribute five kilograms or more of cocaine.
Judge McVerry scheduled sentencing for Nov. 21, 2014, at 1:30 p.m. The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, 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 Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Office of the Pennsylvania Attorney General, Bureau of Narcotics Investigations conducted the investigation that led to the prosecution of Jordan Viccari.
Last Place on Earth Owner Sentenced to 17.5 Years in Federal Prison for Conspiring to DistributeRead the Press Release
SYNTHETIC DRUGS
U.S. Attorney Andrew M. Luger today announced the sentencing of JAMES CARLSON, 57,
the former owner of Last Place on Earth (LPOE), and LAVA HAUGEN, 34, who were
convicted on October 7, 2013, after a jury trial in U.S. District Court in Minneapolis for their
roles in a conspiracy to distribute synthetic drugs. CARLSON was sentenced by United States
District Judge David Doty to 17.5 years in federal prison. HAUGEN was sentenced to 5 years in
prison.Assistant U.S. Attorney Surya Saxena said: “The Court’s sentence, and the jury verdicts in this
case, should confirm once and for all that synthetic drugs are illegal, and that they always have
been illegal under both the Food Drug and Cosmetic Act and the Controlled Substances
Analogue Enforcement Act. These drugs are just as dangerous as traditional illicit drugs like
methamphetamine, cocaine, and heroin, and their effects are often more unpredictable.”“Synthetic drugs, like those sold at Last Place on Earth, create health and safety dangers for
individuals, their families, and their communities,” said U.S. Attorney Andy Luger. “Residents,
medical personnel, and law enforcement officials in Duluth know this all too well. Moreover, these
drugs are illegal, and those who sell them should expect to be prosecuted.”Kelly R. Jackson, Internal Revenue Service Criminal Investigation Division Special Agent in Charge
of the St. Paul Field Office said: “Today’s sentencing demonstrates how federal law enforcement
will band together to help put an end to the criminal behavior of those who prey on others for
their personal financial gain. IRS Criminal investigators will continue to use their financial
expertise to identify and trace laundered funds in these types of fraud schemes.”John J. Redmond, U.S. Food and Drug Administration Office of Criminal Investigations, Special Agent
in Charge of the Chicago Field Office, which includes Minnesota, said: “The defendants in this case
demonstrated blatant disregard for the health and welfare of the general public by illegally
distributing dangerous misbranded drugs. The sentence speaks for itself and serves as a
deterrent to others who choose to put the public’s health at risk. We commend the
U.S. Attorney's Office and our law enforcement partners for their dedicated collaborative efforts in
pursuing this matter."Jack Riley, U.S. Drug Enforcement Administration Special Agent in Charge of the Chicago Field
Division, which includes Minnesota, said: “Today’s sentence should send a message to those involved
in the distribution of synthetic drugs. And I hope they hear that message loud and clear; those who
sell these dangerous drugs in our communities and hope to avoid detection by mislabeling and
misrepresenting their intended use will be investigated and prosecuted to the fullest extent of the
law. I hope today’s sentence also sends a message to the community that these types of drugs pose
a serious public health threat to the state and region,” he added.As proven at trial, CARLSON and HAUGEN conspired to obtain and sell synthetic drugs misbranded as
incense, potpourri, bath salts, exotic skin treatments, glass cleaner, watch cleaner. The items,
marketed under names like “No Name,” “Smoking Dragon,” “Role-X Watch Cleaner,” and
“Binger,” among others, were synthetic drugs as defined by federal law, and subject to regulation
pursuant to the U.S. Food and Drug Administration (FDA). The defendants intended to and did sell
these synthetic drugs for human consumption for the purpose of mimicking other illegal narcotics
and hallucinogens.As proven at trial, CARLSON and HAUGEN intentionally misled government authorities with the false
labels, which, in addition to suggesting that the products were not drugs, failed to describe
package contents accurately, failed to include health warnings regarding use, and failed to
identify the manufacturer or distributor of the items. Between March 16, 2010, and September
29, 2012, the defendants paid nearly $2 million for at least 510 packages of synthetic drugs from
suppliers in California, Arizona, Wisconsin, Florida, and Pennsylvania.From at least 2010 through 2013, CARLSON made millions of dollars by distributing synthetic drugs
through LPOE. He used LPOE employees as guinea pigs for testing untested and unregulated drugs so
that he could confirm that those drugs would “work” on his customers. Some LPOE customers became
addicted to the synthetic drugs sold by CARLSON and suffered dangerous side effects, including
tachycardia, paranoia, agitation, seizures, and black outs.As proven at trial, HAUGEN regularly ordered synthetic drugs from suppliers. She acted as a general
manager of LPOE, and was responsible for weighing and repackaging bulk quantities of synthetics.
HAUGEN also managed inventory, verified orders of drugs delivered to LPOE, and sold synthetic drugs
both by mail, and in person to LPOE customers.According to documents filed in court, Duluth-area hospital emergency rooms treated a
significant number of synthetic drug users while LPOE was in operation. By 2012, the
emergency room at St. Luke’s Hospital was receiving nearly three synthetic-drug-abuse cases each
day. Of those, approximately 10 percent exhibited serious symptoms requiring the use of physical
restraints and chemical sedatives or admission to the Intensive Care Unit or mental health ward.
Each patient willing to disclose to hospital staff where they obtained the synthetic drugs they
took, invariably reported obtaining the drugs from LPOE. After the City of Duluth successfully
enjoined LPOE from distributing synthetic drugs, St. Luke’s Hospital reported a 95 percent decline
in the number of synthetic drugs patients requiring emergency medical attention.
This case was prosecuted by Assistant U.S. Attorneys Surya Saxena and Nate Petterson.U.S. Attorney Luger thanked the Duluth Police Department, the U.S. Food and Drug Administration,
the U.S. Drug Enforcement Administration, and the Internal Revenue Service- Criminal Investigation
Division, the United States Marshals Service, the Duluth City Attorney’s Office, the St. Louis
County Attorney’s Office, and the Lake Superior Drug and Violent Crime Task Force.Defendant Information:
JAMES CARLSON, D.O.B. 4/30/1957
Superior, WI
Convicted:
• Conspiracy to Commit Offenses against the United States, 1 count
• Causing Misbranded Drugs to be Introduced into Interstate Commerce, 9 counts
• Delivery of Misbranded Drugs Received in Interstate Commerce, 6 counts
• Doing Acts Resulting in Drugs Being Misbranded While Held for Sale, 1 count
• Distribution of a Controlled Substance, 1 count
• Conspiracy to Distribute Controlled Substance Analogues, 1 count
• Distribution of Controlled Substance Analogues, 8 counts
• Monetary Transactions in Property Derived from Specified Unlawful Activity, 24 counts
Sentenced:
• 17.5 years in Federal Prison
• 3 years of supervised releaseLAVA HAUGEN, D.O.B. 7/16/1980
Superior, WI
Convicted:
• Conspiracy to Commit Offenses against the United States, 1 count
• Delivery of Misbranded Drugs Received in Interstate Commerce, 1 count
• Doing Acts Resulting in Drugs Being Misbranded While Held for Sale, 1 count
• Conspiracy to Distribute Controlled Substance Analogues, 1 count
Sentenced:
• 5 years in Federal Prison
• 3 years of supervised releaseLancaster Resident Charged with Illegal ReentryRead the Press Release
Victor Hugo Armenta-Calzada, a/k/a “Raul Armenta,” 34, of Lancaster, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about July 25, 2014, Armenta-Calzada, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about May 27, 2011.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Laguna Pueblo Man Pleads Guilty to Assaulting Te-Moak Tribe WomanRead the Press Release
ALBUQUERQUE – Kyle S. Swimmer, 21, an enrolled member and resident of Laguna Pueblo, pleaded guilty this morning to a misdemeanor assault charge under a plea agreement with the U.S. Attorney’s Office.
Swimmer was arrested on May 27, 2014, on a criminal complaint charging him with assault by strangulation. On June 11, 2014, Swimmer was indicted and charged with assaulting his intimate partner by strangulation or suffocating. According to court filings, Swimmer assaulted his girlfriend, an enrolled member of the Te-Moak Tribe of Western Shoshone Indians, on May 14, 2014, in Laguna, N.M., in Cibola County, N.M., by pushing her against a wall and choking her.
During today’s proceedings, Swimmer pled guilty to an information charging him with assault by striking, beating or wounding the victim on May 14, 2014. Swimmer admitted to pushing the victim against the wall, placing his hands on her in an unlawful manner and throwing her down on the couch.
At sentencing, Swimmer faces a maximum penalty of 12 months in prison. His sentencing hearing has not yet been scheduled.
This case was investigated by the Pueblo of Laguna Tribal Police Department with assistance from the Pueblo of Laguna Fire and Rescue Department and is being prosecuted by Special Assistant U.S. Attorney David Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Justice Department Settles Housing-Discrimination Case with Cleveland CompaniesRead the Press Release
The Justice Department announced today that the manager and owner of the Linden House Apartments in Cleveland have agreed to pay $100,000 to resolve allegations that they refused to rent to individuals because the individuals had children. The settlement must still be approved by U.S. District Judge Solomon Oliver Jr.
The settlement resolves a lawsuit filed by the Justice Department on September 30, 2013, against the Zaremba Management Company, the Linden Apartment Company and a property manager who worked at the Linden House Apartments. The United States alleged that the defendants violated the Fair Housing Act by maintaining a policy of refusing to rent units at Linden House to families with children. It also alleged that the Linden House Apartments had a policy of evicting tenants or asking tenants to relocate if they had children while living at Linden House. While the Fair Housing Act does allow housing that is reserved for older persons to limit residency to adults under certain circumstances, Linden House did not meet the requirements for this exemption.
The settlement requires the defendants to pay $90,000 to victims of their discriminatory actions, and to pay $10,000 in civil penalties to the United States. The settlement also requires the defendants to remove any restrictions on occupancy by families with children at the Linden House Apartments and to take certain steps such as training employees and reporting to the Department of Justice to make sure that such discriminatory policies are not implemented in the future.
“Finding decent, safe and affordable housing is critical for working families,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Such families should not be turned away from housing merely because they have children.”
“Families deserve the legal right to live where they can, and the Justice Department will continue to protect them from housing discrimination,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.
Fighting illegal discrimination in housing is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination or have information related to this lawsuit can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777.
Justice Department Obtains $100,000 Settlement in Housing Discrimination Lawsuit Against Cleveland LandlordRead the Press Release
The Justice Department announced today that the manager and owner of the Linden House Apartments in Cleveland have agreed to pay $100,000 to resolve allegations that they refused to rent to individuals because the individuals had children . The settlement must still be approved by U.S. District Judge Solomon Oliver Jr.
The settlement resolves a lawsuit filed by the Justice Department on September 30, 2013, against the Zaremba Management Company, the Linden Apartment Company and a property manager who worked at the Linden House Apartments. The United States alleged that the defendants violated the Fair Housing Act by maintaining a policy of refusing to rent units at Linden House to families with children. It also alleged that the Linden House Apartments had a policy of evicting tenants or asking tenants to relocate if they had children while living at Linden House. While the Fair Housing Act does allow housing that is reserved for older persons to limit residency to adults under certain circumstances, Linden House did not meet the requirements for this exemption.
The settlement requires the defendants to pay $90,000 to victims of their discriminatory actions, and to pay $10,000 in civil penalties to the United States. The settlement also requires the defendants to remove any restrictions on occupancy by families with children at the Linden House Apartments and to take certain steps such as training employees and reporting to the Department of Justice to make sure that such discriminatory policies are not implemented in the future.
“Finding decent, safe and affordable housing is critical for working families,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Such families should not be turned away from housing merely because they have children.”
“Families deserve the legal right to live where they can, and the Justice Department will continue to protect them from housing discrimination,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.
Fighting illegal discrimination in housing is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt . Individuals who believe that they have been victims of housing discrimination or have information related to this lawsuit can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777.
Related Materials:
Zaremba Consent Order
Joplin Woman Pleads Guilty to Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., woman pleaded guilty in federal court today to aggravated identity theft and to fraudulently receiving federal disaster benefits following the tornado that struck the city of Joplin on May 22, 2011, killing 158 people and causing more than $2.9 billion in damage.
Brittany Aulden Barnes, 23, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of disaster fraud and one count of identity theft.
Disaster Fraud
By pleading guilty today, Barnes admitted that she fraudulently received disaster benefits by claiming that her residence in Joplin had been damaged by the tornado. When Barnes met with a FEMA-contracted inspector to discuss her claim on June 6, 2011, she also claimed the loss of a number of furniture items and appliances. Barnes was awarded $6,708 in disaster relief. In addition, Barnes resided at a FEMA-provided mobile home for more than a year, from September 2011 to December 2012, at a total cost to FEMA of $12,066.
However, Barnes admitted today that the Joplin apartment was not her residence at the time of the tornado – on that date the apartment stood vacant. Barnes had rented the apartment prior to the Joplin tornado, and had occupied it along with her boyfriend, Russell Lamar Green. However, Barnes and Green had moved out before the tornado struck. In a separate but related case, Green pleaded guilty on Aug. 7, 2014, to making false statements to FEMA in a failed effort to also receive disaster benefits.
Under the terms of today’s plea agreement, Barnes acknowledged that $18,774 in restitution is due to FEMA.
Aggravated Identity Theft
Barnes also admitted that, while working at an Applebee’s restaurant in Joplin in May 2013, she stole a co-worker’s wallet, which contained the victim’s Missouri driver’s license, Social Security card, debit card and three credit cards.
Barnes used the stolen identity documents to impersonate the victim on several occasions. For example, she used a counterfeit personal check (drawn on the bank account of another victim) to purchase a $269 Sony Playstation game console at Best Buy. She cashed three counterfeit $598 payroll checks (drawn on the bank accounts of two additional victims) at two Wal-Mart stores.
Under the terms of today’s plea agreement, Barnes acknowledged that $2,064 in restitution is due to those victims.
Under federal statutes, Barnes is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution, for disaster fraud. Barnes is also subject to a mandatory consecutive sentence of two years in federal prison without parole, plus a fine up to $250,000 and an order of restitution, for aggravated identity theft. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.Investment Advisor and Attorney Sentenced to 10 Years in Prison After Pleading Guilty to Stealing More ThanRead the Press Release
$4 MILLION
United States Attorney Andrew M. Luger today announced the sentence of MARK HOLT, 45, to
ten years in federal prison for stealing more than $4 million from his investment advisory clients.
The defendant, a securities broker, investment advisor, and now disbarred attorney, operated a
fraud scheme for at least eight years, during which time he used the criminal proceeds to fund his
own lavish lifestyle. HOLT pleaded guilty on April 1, 2014, in United States District Court in St.
Paul, MN, to wire fraud.“Far too often, investment advisors are caught defrauding their clients,” said U.S. Attorney Luger.
“This defendant was an attorney during the time that he was stealing from his clients. He not only
engaged in criminal activity by stealing from his clients, he eroded public trust in our
profession. My Office will continue to prosecute aggressively those who abuse professional
positions of trust.”According to his guilty plea, HOLT owned and operated the Harbor Investment Planning Group, LLC,
later known as the Harbor Group, LLC (Harbor Group) from 2002 through January 2014. In 2005, HOLT
opened bank accounts in the name of the Harbor Group, over which he had exclusive control. Between
September 2005 and November 2013, HOLT persuaded investors to place more than $4 million into his
trust by telling them that he was investing their money in legitimate long-term investments, such
as bonds and mutual funds with JP Morgan Chase, Morgan Stanley, Berkshire Hathaway, and
others. By convincing clients to make long-term investments, HOLT expected them not to draw on
those funds for many years. Instead, HOLT diverted the funds into Harbor Group checking accounts.HOLT continued to defraud his clients using an array of schemes to make their investments seem
legitimate, including making monthly annuity or interest payments to clients; providing
fraudulent Morningstar “Portfolio Fact Sheet, Client Summary” printouts falsely reflecting that
the clients’ funds had been placed in legitimate investment products; and creating
online accounts for clients with Blueleaf, a web-based portal for viewing account information, including
account balances and performance information, and causing weekly e-mail updates to be sent to
clients via the Blueleaf system showing fraudulent account balances.According to the documents filed in court, HOLT converted the investors’ money to his own use. He
spent most of the money to fund his lavish lifestyle, including purchasing a membership at the
White Bear Yacht Club, luxury cars from Maplewood Imports and Sears Imports, and stays at the Ritz
Carlton. He also used some of the stolen funds to make Ponzi payments to the victims.This case was prosecuted by Assistant U.S. Attorney Kimberly Svendsen.
U.S. Attorney Luger thanked the Federal Bureau of Investigation for its assistance in the
investigation.Defendant Information:
MARK HOLT, D.O.B. 9/15/1969
Vadnais Heights, MNConvicted:
• Wire Fraud, 1 countSentenced:
• 10 years in Federal Prison
• 3 years supervised release
• Restitution of $2,940,982.75Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on August 14, and entering pleas of Not Guilty were:
STANLEY FLEMING, a 56-year-old resident of Ronan, appeared on charges of health care fraud. If convicted of the charge contained in the indictment, FLEMING faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-37
KYLLIAN N. LOTT, a 42-year-old resident of Libby, appeared on receipt and possession of child pornography. If convicted of the most serious charges contained in the indictment, LOTT faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 14-38
JENNIFER KAY TRUMBLE, a 28-year-old resident of Kalispell, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, TRUMBLE faces life in prison, $10,000,000 in fines and at least 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 14-35
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston Man Sentenced to More Than 14 Years in Federal Drug Conspiracy CaseRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Apolinar Ortiz Islas, a/k/a “Polo”, 44, formerly of Houston, Texas was sentenced on
Wednesday, August 13, in U.S. District Court in Bangor to 14 years and 2 months imprisonment
after being found guilty of conspiracy to possess with the intent to distribute and to distribute
five kilograms or more of cocaine, following a three day trial in October 2013.Evidence at trial established that Ortiz-Islas was the Houston based source of cocaine for
a group of Canadian drug traffickers from New Brunswick, Canada. The Canadian traffickers
would smuggle hundreds of thousands of dollars in cash into Northern Maine and have it
transported to Houston where it was used to pay Ortiz-Islas for kilograms of cocaine. The
cocaine would then be transported back to Maine and smuggled into Canada. Testimony at trial
indicated that Ortiz-Islas was obtaining the cocaine from a source in Mexico. Evidence further
established that the conspiracy operated in this manner for approximately two years. Ortiz-Islas
was arrested in Houston in September 2012 as he attempted to deliver ten kilograms of cocaine
to an undercover law enforcement officer posing as a courier for the Canadian drug traffickers.
The case was investigated by the Department of Homeland Security – Homeland Security
Investigations Office in Houlton, Maine, with assistance provided by the U.S. Drug Enforcement
Administration in Houston, Texas, and the Royal Canadian Mounted Police.Houston Man Gets 40 Years for Sex Trafficking of ChildrenRead the Press Release
HOUSTON – Tevon Harris aka “Da Kidd” and “King Kidd,” 22, of Houston, will be spending the next 40 years in prison as a result of his convictions on two counts of trafficking children under 18 for commercial sex, announced United States Attorney Kenneth Magidson. Harris pleaded guilty April 9, 2014.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, sentenced Harris to a total of 480 months in federal prison. He was further ordered to spend the rest of his life on supervised release and must register as a sex offender.
According to the plea agreement, from January through July 2012, Harris forced young girls, who he knew were minors, into prostitution by using force and intimidation. Harris stipulated that in order to gain the trust of victims, whom he met on social networking sites, he would tell them he was going to help them become models. Instead, he picked them up, took them to motel rooms and then forced them to have sex with him. Harris would also deprive them of their cell phones, thereby cutting off their communication with the outside world.
Harris used violence to keep the minors cooperating with him. In one instance, he deprived a victim of food for more than four days because he did not believe she was servicing his clients well enough. He also supplied her with marijuana and alcohol. Another victim was beaten with a towel rack torn from a motel room wall when Harris found her using the phone to call her mother for help.
The victims were photographed and their images were posted in online ads for prostitution. Harris kept all monies they earned.
Harris will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
An investigation by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, developed this case using statements from victims as well as on line advertisements for the victims’ services and hotel records from several hotels.
This case, prosecuted by Assistant United States Attorney Sherri L. Zack, 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."
Granite Bay Man Indicted on Charges of Wire Fraud and Money LaunderingRead the Press Release
SACRAMENTO, Calif. - A federal grand jury indicted Brent Lee Newbold, 57, of Granite Bay, California, charging him wire fraud and money laundering, United States Attorney Benjamin B. Wagner announced today.
According to court documents, the defendant engaged in a fraud scheme centered on a business called Holy Cow. Holy Cow produced a “green” cleaning product, which it marketed to stores such as WalMart, ACE Hardware, and Bed, Bath & Beyond. Newbold was the former Chief Executive Officer of Holy Cow.
The indictment alleges that to raise money from investors, Newbold made a variety of misrepresentations about the financial health of the company, including misrepresentations about the company’s debt levels and how invested funds would be used. Contrary to his representations, Newbold regularly used investor funds to pay himself, his wife, his mortgage, and previous investors. Ultimately, Newbold enticed one corporate investor, Spence Enterprises, and at least 14 other individual investors to give him money in connection with Holy Cow. In December 2007, based on Newbold’s misrepresentations and false promises, Spence Enterprises bought Holy Cow. Spence Enterprises believed it was buying a financially stable company when, in fact, it was not.
The indictment further alleges that after Spence Enterprises began funding Holy Cow to promote its growth, Newbold, without authorization, diverted approximately $1,000,000 of money from Holy Cow corporate accounts to himself, his wife, his mortgage company, and his previous lenders and investors. After Newbold was confronted by Spence Enterprises about improperly diverting company money, Newbold opened a secret account at American River Bank. The American River Bank Account was held in the name of Holy Cow, Inc., but Newbold was the sole signatory on the account, and the account statements were sent to his personal residence. Newbold used the American River Bank Account to receive funds from undisclosed individual investors in Holy Cow.
Finally, the indictment alleges that between July 2008 and January 2010, Newbold solicited approximately 14 individual investors. Newbold represented to these investors that he was authorized to act on behalf of Holy Cow; he owned Holy Cow; he owned the majority of Holy Cow stock; Holy Cow was financially sound, stable and profitable; he could bind and obligate Holy Cow; and/or that investor money would be used for business purposes, such as working capital, fulfilling an order, or buying new product. Contrary to his representations, Holy Cow was not financially stable. In fact, Holy Cow had high debt levels as a result of the defendant’s investment fraud scheme and was not profitable. Contrary to his representations, Newbold had no authority to bind or obligate Holy Cow, he did not own the company, and Newbold did not use all investor money for business purposes. In some cases, Newbold provided individual investors with false Holy Cow stock certificates, false Holy Cow purchase order reports, and/or corporate promissory notes that falsely purported to bind Holy Cow and identified Newbold as an “Authorized Agent” of Holy Cow. Contrary to his representations, Newbold regularly used investor money for personal purposes, including paying off prior lenders, paying down his mortgage, and paying himself and his wife. By December 2009, Spence Enterprises put Holy Cow into bankruptcy as a result of the unauthorized and undisclosed debt Newbold was taking on in connection with Holy Cow. The gross loss amount in this case exceeds three million dollars.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.
With respect to the wire fraud, if convicted, the defendant faces a maximum sentence of 20 years in prison, a $250,000 fine, and a 3-year term of supervised release for each count of conviction. With respect to the money laundering, the defendant faces a maximum sentence of 10 years in prison, a $250,000 fine, and a 3-year term of supervised release for each count of conviction. The actual sentence, if convicted, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Government Settles False Claims Act Allegations Against Optim HealthcareRead the Press Release
SAVANNAH, GA: Optim Healthcare, based in Savannah, and others have agreed to pay the United States a total of $4 million to settle allegations that they submitted false claims to the Government.
The Government’s investigation was initiated when it received numerous complaints that patients, who lived in the Savannah area, had to undergo major surgical procedures at Optim Healthcare’s rural hospital located in Tattnall County, approximately 90 miles away. In December 2008, Optim Healthcare purchased then Tattnall Memorial Hospital and later renamed it Optim Medical Center – Tattnall. The Government alleges that the primary motivation in having these surgeries performed at Optim Medical Center – Tattnall was financial, and not based on patient need or desire.
The settlement announced today resolves allegations that between 2008 and 2012, Optim Healthcare, through its physician-owned hospital in Tattnall County and through its ambulatory surgical center in Savannah, submitted claims for surgical and other medical procedures to Medicare that were: (1) improperly inflated, (2) misidentified in order to receive a higher rate of reimbursement, and (3) in violation of the federal prohibition against physician self-referrals, commonly known as the Stark Law. The Stark Law is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is based solely on the best interests of the patient.
United States Attorney Edward J. Tarver said, “Healthcare is not about making as much money as possible. Programs like Medicare operate on the honesty and decency of its providers, and this office will actively pursue those who misuse the federal healthcare programs or their beneficiaries for financial gain.”
“Today’s settlement demonstrates that the OIG will aggressively investigate all allegations made against trusted healthcare providers who misrepresent services and violate the Physician Self-Referral Statute,” said Derrick L. Jackson, Special Agent in Charge of the United States Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office. “This kind of behavior adversely affects both patient care and healthcare costs, and will not be tolerated.”
The settlement resolves allegations that were originally part of a federal lawsuit filed under the whistleblower provisions of the False Claims Act which allow private citizens with knowledge of false claims to file suit on behalf of the Government and to share in any recovery.
The case was investigated by Special Agent Mark Creamer, Department of Health and Human Services, Office of Inspector General. The United States was represented by Assistant United States Attorney Edgar Bueno. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Tufts Health Plan Employee Convicted of Disclosing Personal Patient InformationRead the Press Release
BOSTON – A former employee of Tufts Health Plan pleaded guilty today to stealing personal identifying information belonging to hundreds of customers. The stolen data included names, dates of birth, and Social Security numbers, primarily of customers over the age of 65.
Emeline Lubin, 27, pleaded guilty to the unlawful disclosure of Social Security numbers. U.S. District Judge George A. O’Toole, Jr., scheduled sentencing for Nov. 13, 2014.
In 2010, Lubin began working at Tufts Health Plan in Watertown. During her employment, Lubin gave lists of customers’ personal identification information to a Florida man who was involved with her brother in a scheme to steal Social Security benefits and to collect fraudulent income tax refunds by using stolen identities to file false income tax returns. At today’s plea hearing, the prosecutor stated that Lubin stole and disclosed the personal data of over 8,700 customers. Earlier this year, Sniders Jean-Jacques and Melvin Lubin pleaded guilty to the theft of public money in U.S. District Court in Worcester.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Timothy Landry of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should email [email protected]Former Correctional Officer and Spouse Plead Guilty to Bribery and ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Joel Gonzalez, a former U.S. Bureau of Prisons correctional officer, and Lisa Gonzalez, his wife, have admitted to accepting bribes from the family of an inmate in exchange for introducing contraband into the Federal Correctional Institution (FCI) in Three Rivers, announced U.S. Attorney Kenneth Magidson.
Joel Gonzalez admitted that from December 2012 through April 2014, he made arrangements to smuggle tobacco and other contraband into the FCI for an inmate in exchange for cash bribes. His wife assisted him in arranging times and locations for receiving the contraband and bribe payments. She also traveled with him from their residence in Beeville to Laredo in order to accept the items. Joel Gonzalez would then smuggle the items into the FCI on his body.
The investigation further revealed Lisa Gonzalez was employed by the Texas Department of Criminal Justice during the orchestration of this scheme.
Sentencing has been set for Nov. 19, 2014. They were permitted to remain on bond pending that hearing.
This case was investigated by the U.S. Department of Justice - Office of the Inspector General and the FBI with assistance from Customs and Border Protection, Beeville Police Department and the Texas Rangers. Assistant U.S. Attorney Mark Patterson is prosecuting.
Florida Businessman Sentenced to Prison, Ordered to Pay $3.8M in Restitution for Defrauding InvestorsRead the Press Release
PITTSBURGH - A resident of Tampa, Florida, has been sentenced in federal court to 60 months imprisonment and ordered to forfeit $1,728,021 and pay $3,832,701 in restitution on his conviction of wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Fotios Geivelis, Jr., a/k/a Frank Geivelis, a/k/a Frank Anastasio, 34.
According to information presented to the court, Geivelis, through operation of his Florida company, Worldwide Funding III, Ltd. (WWF), obtained approximately $3.9 million in increments of $60,000 or $90,000 from nearly four dozen investors, to each of whom he promised to obtain a $10 million “non-recourse” overseas loan for a “humanitarian” or “job-creating” project. The funds were wired into the escrow accounts of a Florida attorney Geivelis designated as the “Paymaster,” and thereafter paid out to that attorney, brokers who had referred the investors to WWF and to Geivelis, who spent his share on personal expenses such as hotels, casinos, restaurants, strip clubs, automobiles, clothing and jewelry. No loans were ever obtained for the investors, who Geivelis attempted to lull by repeated assurances that their deals would close within a short period of time.
Prior to imposing sentence, Judge Fischer stated that this very serious offense involving Internet marketing was a product of defendant’s greed; and while he had a difficult upbringing, each of his three siblings had managed to overcome it.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Geivelis.
Five Charged in Heroin Trafficking Conspiracy, One Defendant Also Charged with Distribution Resulting in DeathRead the Press Release
PITTSBURGH – Five Pittsburgh-area residents have been indicted by a federal grand jury in Pittsburgh for heroin trafficking, United States Attorney David J. Hickton announced today. One of the counts in the indictment charges a defendant with distributing heroin that resulted in the death of a user of the heroin.
The five-count indictment charges Javon Jackson, 27; Hayley Bober, 25; Carrie Robinson, 45; Kevin Schultz, 31; and William Schultz, 33, with conspiring to distribute heroin during time periods between 2012 and 2014. The indictment also charges Jackson with possessing heroin with intent to distribute in 2013 and 2014 as well as with distributing heroin that resulted in the death of a user of the heroin on April 22, 2013.
The law provides for a maximum total sentence for Jackson of at least 20 years and up to life in prison and a fine of up to $9,000,000. The law provides for a maximum total sentence for Kevin Schultz and William Schultz of at least five years and up to 40 years in prison and a fine of up to $5,000,000. The law provides for a maximum total sentence for Bober and Robinson of up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories, if any, of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Baldwin Police Department, the Allegheny County Medical Examiner’s Office, and the Allegheny County District Attorney’s Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Father and Son Indicted for Theft of Military EquipmentRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces the return by a grand jury of a three-count indictment charging Pedro Luis Infantes (47) and his son, Luis Rafael Infantes (21), both of Ocala, with the theft of government property, interstate transportation of stolen property and making a false statement to a federal agency. If convicted on all counts, Pedro Luis Infantes faces a maximum penalty of 25 years in federal prison. His son faces a maximum of 20 years in federal prison. The indictment was returned on August 13, 2014.
According to the indictment and other court documents, on July 11, 2014, Pedro Luis Infantes unwittingly met with a confidential source who was working in cooperation with law enforcement. Pedro Luis Infantes believed that the source had connections to potential buyers affiliated with Mexican drug trafficking organizations. Ultimately, Pedro Luis Infantes negotiated a sale price of $153,500 for 17 military-grade, thermal-imaging monoculars, rifle cleaning kits, and other assorted military equipment that had been stolen from the government. When arrested and interviewed by the FBI agents, Pedro Luis Infantes provided false statements to the agents about how he had acquired the military items and how the serial numbers on the items had been removed.
Luis Rafael Infantes is an active-duty supply sergeant for the United States Army at Fort Knox, Kentucky. He admitted to military investigators that he had illegally taken the thermal imaging equipment and other items from his base’s inventory and then given them to his father to sell. Luis Rafael Infantes said that he had stolen the items because he had fallen into financial trouble and needed the money.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is investigated by Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Executive Assistant in Investment Scheme Sentenced to Six YearsRead the Press Release
Orlando, FL – U.S. District Judge Paul G. Byron yesterday sentenced Kim Rivers (47, Windermere) to six years in federal prison for three counts of aggravated identity theft. The Court also ordered Rivers to pay restitution to the victims in the amount of $1,160,284.
According to court documents, Michael and Kim Rivers created an international bank software company called Global Business Genesis, LLC (“GBG”). The company was headquartered in Orlando, Florida. Michael Rivers was the Chief Executive Officer and Kim Rivers was the Executive Assistant of GBG. During the course of the conspiracy, Michael and Kim Rivers created and provided forged and false documents to potential investors. They also made false statements to investors. For example, on December 11, 2012, Michael Rivers sent an e-mail to Kim Rivers, giving her instructions on how to portray herself as an employee of a law firm. The e-mail detailed how Kim Rivers would pretend to be an administrative assistant at the firm. The e-mail further detailed how another co-conspirator would pretend to be an associate at the law firm.
In January 2013, Michael Rivers was in London trying to solicit investors. After receiving some resistance from investors, Michael Rivers suggested calling the law firm to speak with an attorney who could vouch for the authenticity of GBG and its license agreements. Michael Rivers called Kim Rivers, who pretended to work at the law firm. A co-conspirator then pretended to be an associate at the firm and stated that due diligence had been conducted.
In addition to the forged attorney documents, Michael and Kim Rivers told state and federal courts, the government, creditors, and opposing litigants, that Michael Rivers had debilitating cancer and was receiving treatment in Argentina. Michael and Kim Rivers often claimed that Michael Rivers was medically incapacitated in Argentina. They stated that because of his illness, Michael and Kim Rivers were unable to appear in court, at depositions, and at meetings in the United States. Those false representations were made in letters, e-mails, filings in state and federal court, hearings in court, and in depositions. The statements were also made by agents representing the couple.
During the execution of the search warrants in this case, law enforcement officers found items including correspondence, templates, letterhead, altered documents, and computer images of signatures and seals, which were used during the course of the offenses. These items included the elements used to create the forged documents, including attorney letters, letters from doctors concerning cancer treatment in Argentina and in Florida, insurance documents concerning cancer treatment, and forged documents from financial institutions and government entities.
Michael Rivers (56, Windermere) pleaded guilty on March 20, 2014 to one count of conspiracy to commit wire fraud, eight counts of wire fraud, one count of conspiracy to commit money laundering, eight counts of money laundering, and three counts of aggravated identity theft. He is currently awaiting sentencing.
This case was investigated by U.S. Secret Service. It is being prosecuted by Assistant United States Attorneys Christopher LaForgia, Daniel Irick, and Nicole Andrejko.
Ex-detroit Man Gets 9 Years for Selling HeroinRead the Press Release
CHARLESTON, W.Va. – Darrell Shawton Collins, 36, formerly of Detroit, Michigan, was sentenced today to nine years in federal prison for selling heroin in Charleston’s East End, announced U.S. Attorney Booth Goodwin. The sentence was handed down by United States District Judge John T. Copenhaver, Jr.
In December 2013, a confidential police informant, under the supervision of detectives from the Charleston Police Department’s Special Enforcement Unit, purchased heroin from Collins. The drug deal took place at the corner of Washington Street East and Thompson Street in Charleston. At the time of the transaction, Collins was on federal supervised release for a prior drug-trafficking offense. At today’s sentencing, Collins received eight years’ imprisonment for the distribution conviction, plus another year for violating the terms of his supervised release.
The Charleston Police Department conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution.
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.
Discovery Bay Resident Receives Twenty Six-Month Sentence for Committing Bank FraudRead the Press Release
OAKLAND – Brittany Lebon was sentenced today to 26 months in prison, and ordered to pay $364,698.86 in restitution for embezzling from her employer and committing bank fraud, announced United States Attorney Melinda Haag and U.S. Secret Service Special Agent in Charge Andrew Adelmann.
Lebon pleaded guilty on June 18, 2014, to five counts of bank fraud. According to the plea agreement, Lebon admitted that, while employed as a bookkeeper at a paving business owned by her family, she embezzled funds and defrauded financial institutions into crediting the stolen funds to her personal accounts. Specifically, beginning in March 2009, and continuing through August 2011, Lebon created and printed one-hundred and two unauthorized checks, totaling $364,698.86. On seventy-three of those checks, Lebon forged the signature of her supervisor (who was her uncle); on the remaining twenty-nine checks she fraudulently obtained her uncle’s signature by representing to him that she would direct the payments to a union trust fund. Lebon caused ninety-six checks to be deposited into her personal accounts at three different financial institutions. Lebon made the remaining six checks, totaling $3,449.13, payable to a utility company, to pay for her personal utility bills.
Lebon, 30, of Discovery Bay, was indicted by a federal grand jury on Oct. 25, 2012. She was charged with ten counts of bank fraud, and two counts of aggravated identity theft. Upon her sentencing, the government moved to dismiss the seven counts to which Lebon did not enter a plea.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, United States District Court Judge, following Lebon’s guilty plea on five counts of bank fraud in violation of 18 U.S.C. § 1344. Judge Gonzalez Rogers also sentenced the defendant to a 5-year period of supervised release, and ordered her to pay $500.00 in special assessment. The defendant will begin serving the sentence on Oct. 1, 2014.
Thomas E. Stevens is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Patti Lau. The prosecution is the result of an investigation by the United States Secret Service.
(Lebon indictment )
Deputy to Liberty Reserve Founder Pleads Guilty to Money LaunderingRead the Press Release
Azzeddine El Amine, 47, of San José, Costa Rica, pleaded guilty today to money laundering and operating an unlicensed money transmitting business in connection with his role in running Liberty Reserve, a company that operated one of the world’s most widely used digital currency services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara for the Southern District of New York made the announcement. The guilty plea was entered by U.S. District Judge Denise L. Cote of the Southern District of New York.
According to allegations contained in the indictment and statements made in related court proceedings, Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve was created, structured and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes, and it emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity. Liberty Reserve was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals around the world to conduct anonymous and untraceable financial transactions.
El Amine served as a principal deputy to Liberty Reserve founder Arthur Budovsky and operated a prominent Liberty Reserve “exchanger” service, through which he shared in Liberty Reserve’s profits with Budovsky. Before being shut down by the government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system and laundered more than $6 billion in suspected proceeds of crimes, including credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking.
El Amine was arrested in Madrid, Spain, in May 2013, and pleaded guilty today to one count of conspiring to commit money laundering, one count of conspiring to operate an unlicensed money transmitting business and one count of operating an unlicensed money transmitting business. A sentencing date has not yet been scheduled .
This case is being investigated by the Secret Service, the Internal Revenue Service-Criminal Investigation and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which worked together as part of the Global Illicit Financial Team. The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad, including the Secret Service’s New York Electronic Crimes Task Force, the Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Spanish National Police, Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation and the Swiss Federal Prosecutor’s Office.
The case is being prosecuted by Trial Attorney Kevin Mosley of the Criminal Division’s Asset Forfeiture and Money Laundering Unit and Assistant U.S. Attorneys Serrin Turner, Andrew Goldstein and Christine Magdo of the Southern District of New York. Support was also provided by the Criminal Division’s Office of International Affairs and Computer Crime and Intellectual Property Section.
The charges contained in the indictment against El Amine’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.Deputy to Liberty Reserve Founder Pleads Guilty to Money Laundering in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Leslie R. Caldwell, Assistant Attorney General for the Justice Department’s Criminal Division, announced that AZZEDDINE EL AMINE pled guilty today in Manhattan federal court to money laundering and operating an unlicensed money transmitting business for his role in running Liberty Reserve, a company that operated one of the world’s most widely used digital currency services and allegedly laundered more than $6 billion in suspected proceeds of crimes. EL AMINE was arrested in Madrid, Spain, in May 2013 and pled guilty today before U.S. District Judge Denise L. Cote.
According to allegations contained in the Indictment filed against Liberty Reserve, EL AMINE, and six other individual defendants, and statements made in related court proceedings:
Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve was created, structured and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes, and it emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity. Liberty Reserve was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals around the world to conduct anonymous and untraceable financial transactions.
Before being shut down by the Government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system and laundered more than $6 billion in suspected proceeds of crimes, including credit card fraud, identity theft, investment fraud, computer hacking, child pornography, and narcotics trafficking. EL AMINE served as a principal deputy to Liberty Reserve founder Arthur Budovsky and operated a prominent Liberty Reserve “exchanger” service, from which he shared the profits with Budovsky.
EL AMINE, 47, of San José, Costa Rica, pled guilty to one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison; one count of conspiring to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison; and one count of operating an unlicensed money transmitting business, which carries a maximum sentence of five years in prison. A sentencing date has not yet been scheduled. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding work of the United States Secret Service, the Internal Revenue Service-Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which worked together in this case as part of the Global Illicit Financial Team. Mr. Bharara also thanked the United States Secret Service’s New York Electronic Crimes Task Force for their extraordinary assistance with the investigation. Additionally, Mr. Bharara specially thanked all the international law enforcement agencies that assisted in the investigation, in particular, the Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Spanish National Police, Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation, and the Swiss Federal Prosecutor’s Office.
This case is being prosecuted jointly with the Department of Justice’s Asset Forfeiture and Money Laundering Section (“AFMLS”), which is overseen by Assistant Attorney General Leslie R. Caldwell. Mr. Bharara thanked AFMLS for its partnership and also thanked the Department of Justice’s Office of International Affairs and Computer Crime and Intellectual Property Section for their support.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Asset Forfeiture Unit. Assistant United States Attorneys Serrin Turner and Andrew Goldstein of the Southern District of New York and Trial Attorney Kevin Mosley of AFMLS are in charge of the prosecution, and Assistant United States Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
The charges contained in the Indictment against certain of EL AMINE’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
Delaware Woman Sentenced to 51 Months in PrisonFor $1.7 Million Tax Fraud and Identity Theft SchemeRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Dawn Chamberlain, age 36, of Claymont, Delaware, was sentenced today by the Honorable Leonard P. Stark, Chief Judge of the United States District Court for the District of Delaware, to 51 months imprisonment and full restitution. The sentence follows Chamberlain’s plea of guilty to violations of 18 USC § 286 (False Claims Conspiracy) and 18 USC § 1341 (Mail Fraud).
From 2009 through 2012, Chamberlain prepared nearly 450 false and fraudulent U.S. Individual Federal Income Tax Returns for clients she solicited in Delaware and elsewhere. In the returns, the defendant claimed an average of approximately $3,500 in fraudulent credits. She often claimed the American Opportunity Tax Credit and the Earned Income Tax Credit for clients who were not eligible for those credits. The defendant’s actions are estimated to have caused at least $1.5 million in losses to the United States Department of Treasury.
The defendant also stole from her own clients. She kept a portion of their refunds without their consent, and she used her clients’ names, dates of birth, and social security numbers to file more than $210,000 in false and fraudulent New York State Resident income tax returns. Her clients did not live or work in New York. The defendant did not share any of the New York tax refunds with her clients.
U.S. Attorney Oberly stated: “This case should send a clear signal that individuals who file false claims against the United States Treasury will be prosecuted. I am committed to working with the Internal Revenue Service to pursue these cases and seek incarceration wherever possible.”
“The American tax system is designed to provide vital government services to our people. It is not a slush fund for thieves and fraudsters,” said Akeia Conner, Special Agent in Charge, IRS Criminal Investigation. “This sentence today declares that those who illegally target our nation’s tax dollars for personal financial gain, along with others who assist them, are themselves potential targets for criminal prosecution."
“Taxpayers put their trust in paid tax preparers – and the defendant willfully violated that trust,” said New York State Commissioner of Taxation and Finance Thomas H. Mattox. “In doing so, she not only stole tax refunds from the State of New York, she victimized innocent people who called on her to help them meet their tax obligations.”
This case is the result of an investigation conducted by the Internal Revenue Service, the United States Postal Inspection Service, and the Social Security Administration, Office of the Inspector General, with the investigative assistance and cooperation of the State of New York. The prosecution is being handled by Assistant United States Attorney Lauren Paxton, District of Delaware.Colorado Man Sentenced to 51 Months in Prison in Interstate Sex Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Colorado man was sentenced today to 51 months in prison for his role in a conspiracy to transport women across state lines for prostitution in New Jersey and other states, U.S. Attorney Paul J. Fishman announced.
James Roy Smith, 36, a/k/a “Mister Smith,” of Lakewood, Colorado, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to a superseding information charging him with conspiracy to transport women across state lines to work as prostitutes and transportation of a victim across state lines with the intent that the victim work as a prostitute. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From February 2009 through June 27, 2010, Smith conspired to operate a prostitution business in numerous locations around the United States, including New Jersey, New Mexico, Nebraska and Pennsylvania. The women would be transported between states by air as well as in a Cadillac Escalade registered to Smith’s uncle. In order to attract and locate local customers, the conspirators would place advertisements for escort services on Craigslist as well as Backpage.com.
Smith admitted that in late June 2010, he conspired to transport six women from New Jersey to Philadelphia to work as prostitutes. During that time, while checked in at the Econolodge in Elizabeth, New Jersey, he also caused a victim to be transported between these two states with the intent that the victim work as a prostitute.
In addition to the prison term, Judge Chesler sentenced Smith to 15 years of supervised release, fined him $5,000 and ordered him to forfeit the Cadillac.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with investigation leading to today’s sentencing. He also thanked FBI offices in Omaha, Nebraska and Salt Lake City, Utah; the Union County, New Jersey, Prosecutor’s Office; the Elizabeth, New Jersey, Police Department; and the Clay County, Nebraska, Sheriff’s Office for their roles in the investigation.
The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Brooke M. Barnett Esq., NewarkCo-Founder of Government Contracting Company Pleads Guilty to Illegal Gratuity ChargeRead the Press Release
Timothy S. Miller, 58, a co-founder of a Chesapeake, Virginia, government contracting company, pleaded guilty today to providing illegal gratuities to two public officials working for the United States Navy Military Sealift Command.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Special Agent in Charge Susan Triesch of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, and Special Agent in Charge Royce E. Curtin of the FBI Norfolk Field Office made the announcement today after Miller’s guilty plea was accepted by United States Magistrate Judge Lawrence R. Leonard of the Eastern District of Virginia.
According to a statement of facts filed with the plea agreement, in February 2009, Miller, along with his business partner, Dwayne A. Hardman, co-founded a government contracting company that provided telecommunications support to the Military Sealift Command, which is the leading provider of transportation for the U.S. Navy.
At the plea hearing, Miller admitted that he provided illegal gratuities to two officials at the Military Sealift Command for favorable official acts. In particular, he admitted that on May 12, 2009, he gave $30,000 in cash to Kenny E. Toy, the former Afloat Programs Manager for the Military Sealift Command’s N6 Command, Control, Communication, and Computer Systems Directorate, and Scott B. Miserendino Sr., a government contractor who worked with Toy at the Military Sealift Command Headquarters. He also admitted that just two days after giving Toy and Miserendino the $30,000, he agreed that Hardman should give Toy and Miserendino an additional $20,000.
According to Miller’s statement of facts, Toy exercised substantial influence over the Military Sealift Command contracting process by creating and executing multi-million dollar budgets, obtaining funding for projects, developing and having access to sensitive information, and requesting that subcontract work be awarded to particular companies. As a result of the $50,000 payment, Miserendino and Toy performed various official acts to assist Miller’s company. Indeed, in 2009, Miller’s company received approximately $2.5 million in business from the Military Sealift Command.
As a condition of his plea agreement, Miller has agreed to forfeit $167,000. Miller is scheduled to be sentenced on November 7, 2014.
Earlier this year, five other individuals pleaded guilty in connection with the bribery scheme. On February 12, 2014, Toy pleaded guilty to bribery, and he was sentenced on July 29, 2014, to serve 96 months in prison and ordered to forfeit $100,000. On February 18, 2014, Hardman pleaded guilty to bribery, and he was sentenced on July 9, 2014, to serve 96 months in prison and ordered to forfeit $144,000. On February 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery, and he was sentenced on August 5, 2014, to serve 36 months in prison and ordered to forfeit $57,000. On March 5, 2014, Roderic J. Smith pleaded guilty to conspiracy to commit bribery, and he was sentenced on June 23, 2014, to serve 48 months in prison and ordered to forfeit $175,000. On April 4, 2014, Adam C. White pleaded guilty to conspiracy to commit bribery, and he was sentenced on July 11, 2014, to serve 24 months in prison and ordered to forfeit $57,000.
The case was investigated by the FBI, NCIS and DCIS. The case was prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia.
Co-Founder of Government Contracting Company Pleads Guilty to Illegal Gratuity ChargeRead the Press Release
NORFOLK, Va. – Timothy S. Miller, 58, a co-founder of a Chesapeake, Virginia, government contracting company, pleaded guilty today to providing illegal gratuities to two public officials working for the United States Navy Military Sealift Command.
United States Attorney Dana J. Boente of the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office; Special Agent in Charge Susan Triesch of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; and Special Agent in Charge Royce E. Curtin of the FBI Norfolk Field Office made the announcement today after Miller’s guilty plea was accepted by United States Magistrate Judge Lawrence R. Leonard of the Eastern District of Virginia.
According to a statement of facts filed with the plea agreement, in February 2009, Miller, along with his business partner, Dwayne A. Hardman, co-founded a government contracting company that was designed to provide telecommunications support to the Military Sealift Command, which is the leading provider of transportation for the U.S. Navy.
At his plea hearing, Miller admitted that he provided illegal gratuities to two public officials for, or because of, favorable official acts. On May 12, 2009, Miller provided $30,000 in cash to Kenny E. Toy, the former Afloat Programs Manager for the Military Sealift Command’s N6 Command, Control, Communication, and Computer Systems Directorate, and Scott B. Miserendino, Sr., a government contractor who worked with Toy at the Military Sealift Command Headquarters. On May 14, 2009, Miller agreed that another $20,000 cash payment be delivered to Toy and Miserendino by Hardman.
According to Miller’s statement of facts, Toy exercised substantial influence over the Military Sealift Command contracting process, by creating and executing multi-million dollar budgets, obtaining funding for projects, developing and having access to sensitive information, and requesting that subcontract work be awarded to particular companies. As a result of the $50,000 payment, Miserendino and Toy performed various official acts to assist Miller’s company. Indeed, in 2009, Miller’s company received approximately $2.5 million in business from the Military Sealift Command.
As a condition of his plea agreement, Miller has agreed to forfeit $167,000.
Miller is scheduled to be sentenced on November 7, 2014. He faces a maximum penalty of 2 years in prison.
Earlier this year, six other individuals pleaded guilty in connection with the bribery scheme. On February 12, 2014, Toy pleaded guilty to bribery, and he was sentenced on July 29, 2014, to 96 months in prison and ordered to forfeit $100,000. On February 18, 2014, Hardman pleaded guilty to bribery, and he was sentenced on July 9, 2014 to 96 months in prison and ordered to forfeit $144,000. On February 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery, and he was sentenced on August 5, 2014, to 36 months in prison and ordered to forfeit $57,000. On March 5, 2014, Roderic J. Smith pleaded guilty to conspiracy to commit bribery, and he was sentenced on June 23, 2014, to 48 months in prison and ordered to forfeit $175,000. On April 4, 2014, Adam C. White pleaded guilty to conspiracy to commit bribery, and he was sentenced on July 11, 2014, to 24 months in prison and ordered to forfeit $57,000. On August 12, 2014, Scott B. Miserendino, Sr. pleaded guilty to conspiracy to commit bribery and accepting bribes and is scheduled to be sentenced on November 7, 2014.
The case was investigated by the FBI, NCIS, and DCIS. The case was prosecuted by Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia and Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Citrus Heights Resident Sentenced to Prison for Credit Card Fraud and Manufacturing MarijuanaRead the Press Release
SACRAMENTO, Calif. — — Oganes Serobyan, 41, a resident of Citrus Heights, California, was sentenced today by United States District Judge Troy L. Nunley to over four years in prison for wire fraud and manufacturing marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, Serobyan established a sham business, Link & Work Holdings LLC, which purported to sell “e-books” online, but which, in fact, provided no goods or services. Between November 2010 and May 2011, the company unlawfully made tens of thousands of unauthorized charges on American Express credit cards, which were ultimately credited to Link & Work Holdings’ bank account. Bank surveillance footage showed the defendant making cash withdrawals from this account. Over 26,000 American Express account numbers were unlawfully charged during the scheme, with approximately $392,000 in fraudulent charges. When officers searched Serobyan’s home, they discovered an active marijuana grow on his property with plants in various stages of growth, in addition to dozens of one-gram vials of hashish oil.
Judge Nunley sentenced Serobyan to a total term of imprisonment of 51 months, and also ordered him to pay restitution to American Express in the amount of $392,519.21.
This case was the product of an investigation by the United States Secret Service and the Sacramento Valley Financial Crimes Task Force. Assistant United States Attorney Michele Beckwith prosecuted the case.
The court ordered the defendant to surrender to the Bureau of Prisons on September 25, 2014.
Charlotte Man Sentenced to 12 Years in Prison on Gun and Drug ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced Timothy Massey, 32, of Charlotte to serve to 144 months in prison to be followed by two years of supervised release for federal gun, drug and supervision violations, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Greg Forest, Chief Probation Officer of the U.S. Probation Office (USPO); and Chief Rodney D. Monroe of the Charlotte Mecklenburg Police Department (CMPD).
According to filed court documents and statements made in court, in May 2012, CMPD police officers conducted a traffic stop of the vehicle Massey was driving. Over the course of the traffic stop, law enforcement found a gun and marijuana in a backpack stored in the vehicle’s trunk. Massey’s prior convictions prohibit him from carrying a weapon. Massey pleaded guilty in November 2013 to possession of a firearm by a convicted felon and possession with intent to distribute marijuana.
Massey has been in federal custody since August 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF, USPO and CMPD. The case was prosecuted by Assistant United States Attorney Robert J. Gleason of the U.S. Attorney’s Office in Charlotte.
Burkburnett, Texas Man Sentenced to Federal Prison for Extorting Money Through Telephone ThreatsRead the Press Release
ALBUQUERQUE – Steven Manuel White, 37, of Burkburnett, Texas, was sentenced in federal court in Las Cruces, N.M., this morning for violating the Hobbs Act by extorting money from another man by making threats of violence. White was sentenced to a year and a day in federal prison followed by two years of supervised release. He also was ordered to pay $2000.00 in restitution to the victim of his criminal conduct.
White and co-defendant Stacy Renee Campbell, 30, of Roswell, N.M., were charged in Aug. 2013, in a criminal complaint alleging that they extorted $2000.00 from the victim by sending text messages threatening to disclose the victim’s affair with Campbell. As directed by the threatening text messages, the victim wire-transferred $2000.00 from Roswell to the defendants in Wichita Falls, Texas. White then attempted to extort another $2000.00 from the victim. When the victim’s wife called White to say that his extortion threats would not work because she knew of the affair, White allegedly threatened to kill her and the victim. White and Campbell subsequently were arrested in the Northern District of Texas (Lubbock) and transferred to the District of New Mexico to face the charges in this case.
White pleaded guilty on Feb. 11, 2014, to violating the Hobbs Act by extorting money by making threats of violence. In entering his guilty plea, White admitted extorting $2000.00 from the victim in exchange for not disclosing the victim’s affair with Campbell. White acknowledged sending his demands and directions on how to facilitate the payment using text messaging and that the victim was traveling in interstate commerce from Lubbock to Roswell during this time.
Campbell entered a guilty plea on Feb. 11, 2014, to being an accessory after the fact. In her plea agreement, Campbell admitted making false statements to a detective of the Roswell Police Department. Specifically, Campbell admitted lying to the detective in order to prevent him from learning White’s identify in order to assist White in avoiding arrest and prosecution for his extortion of the victim.
At sentencing, Campbell faces a statutory maximum penalty of ten years in prison. Her sentencing hearing has yet to be scheduled.
This case was investigated by the Roswell office of the FBI and the Roswell Police Department and is being prosecuted by Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Demerius Rivera, 33, of Buffalo, N.Y., who was convicted of possession with intent to distribute marijuana, was sentenced to 18 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on June 6, 2012, officers with the Buffalo Police Department Narcotics Unit and the Lancaster Police Department SWAT Team executed a search warrant at 77 Landon Street in Buffalo. During the search, the SWAT Team encountered the defendant in a rear bedroom. Officers found 25 ounces of marijuana packaged for sale in a dresser. Upon questioning, Rivera admitted that the marijuana was his and that there were two guns “under the bed” in the bedroom. Officers recovered two shotguns under the bed, and a third shotgun in the basement.
The sentencing is the culmination of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Lancaster Police Department, under the direction of Chief Gerald Gill.Browning Man Sentenced for Murder on the Blackfeet Indian ReservationRead the Press Release
After beating a man to death at an elementary school, Victor Michael Vielle was sentenced in federal court to 170 months in prison followed by five years of supervised release. Vielle was sentenced on August 14, 2014 in Great Falls, before U.S. District Judge Brian M. Morris. As part of the sentence, VIELLE is also required to pay restitution to the family for the victim's funeral expenses.
In April of this year, Vielle entered a guilty plea to Second Degree Murder.
In an Offer of Proof, Assistant U.S. Attorney Ryan Weldon stated that if the case had proceeded to trial, the government would have proven that on October 6, 2012, Vielle and a friend walked to the Browning Elementary School. While at the school, VIELLE beat his friend to death for no apparent reason. The following morning, Vielle was covered in blood and bragged to others about the beating.
At sentencing, the government stated, "Vielle is a dangerous man. He fights, and now the Court is aware that he is capable of killing." The government explained that Vielle's actions are not those of a "friend." Instead, "they are the actions of a man who committed Second Degree Murder."
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that VIELLE will likely serve all of the time imposed by the court. In the federal system, VIELLE does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This case was investigated by the Federal Bureau of Investigation.
Baltimore Cocaine Dealer Sentenced to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Travis Gaines, age 34, of Baltimore, Maryland, today to 151 months in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine. Judge Quarles 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.
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.