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18 September 2014
Fort Lauderdale Jury Convicts Hollywood Man of Kidnapping and Sex Trafficking by ForceRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Scott Israel, Sheriff, Broward Sheriff’s Office, and Frank Fernandez, Chief, Hollywood Police Department, announce the conviction of Shaun Eric McKinley, 35, on charges of kidnapping, in violation of Title 18, United States Code, Section 1201(a) and sex trafficking by force, fraud or coercion, in violation of Title 18, United States Code, Section 1591(a).
Sentencing for McKinley has been scheduled for November 25, 2014, before U.S. District Judge William P. Dimitrouleas. At sentencing, McKinley faces a minimum mandatory sentence of 15 years in prison for the sex trafficking charge and a possible maximum sentence of life in prison for both charges.
According to records filed in this case and statements made in court, McKinley met a 28 year old female outside his home in Hollywood in December of 2013. Within three days of meeting her, McKinley was acting as her pimp and physically assaulting her for what he saw as minor infractions, such as returning home late from a prostitution date. Thereafter, the victim was required to meet all customers at McKinley’s home where he could keep an eye on her. The victim averaged approximately 5-7 dates a day, seven days a week, with all the earnings going to McKinley. The victim first attempted to leave McKinley in February but he quickly found her. When he got her home, by dragging her for blocks by the hair, McKinley punished her by making her strip naked, covering her head with a pillow case, hog-tying her with extension cords and beating her with a board. The victim waited until April to get the courage to attempt another escape, this one successful. Unfortunately, on May 18, 2014, McKinley lured her out of hiding using a ruse to get her into a dark alley, where he physically assaulted her, threw her into a car and drove away with her. The kidnapping was captured on a surveillance video from a nearby business and was played for the jury. The victim was able to escape only when McKinley stopped at a convenience store for a cigar, and left his friend in charge of watching her. That friend, a government witness, testified that after McKinley was out of sight, he unlocked the car door so the victim could run. After flagging down a passing ambulance, the victim was taken to Memorial Regional Hospital where she was treated for her injuries, which included a fractured front tooth, a lip laceration and head contusions. Still undeterred, and fearing the victim would talk to police, McKinley showed up at the hospital looking for her, dressed in blood covered clothes. A concerned nurse and an alert Hollywood Police Officer working a detail kept McKinley from reaching the victim, and McKinley was placed under arrest.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the Broward County Sheriff’s Office and the Hollywood Police Department. The case was prosecuted by Assistant U.S. Attorneys Corey Steinberg and Paul Schwartz.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former State Lawmaker SentencedRead the Press Release
A former State Representative from Detroit was sentenced yesterday to a year in prison after having been found guilty of structuring financial transactions, announced U.S. Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Acting Special Agent in Charge Jarod Koopman, Internal Revenue Service – Criminal Investigation.
Kenneth Daniels, 56, was convicted earlier this year of structuring financial transactions following a jury trial with co-defendants Carlos Powell, Eric Powell and Earnest Proge before U.S. District Judge Stephen J. Murphy, III in U.S. District Court in May 2014.Evidence presented at trial showed that Daniels, who had served as the Vice Chairman of the Insurance and Financial Services Committee while a member of Michigan’s State Legislature, supported Powell’s large-scale drug operation by making multiple financial transactions to conceal Powell’s illegal activities from law enforcement. Daniels received $19,000 from Carlos Powell, broke those funds into two smaller amounts, and went to two separate banks to obtain cashier checks in an attempt to evade legal requirements to report transactions exceeding $10,000. Daniels returned the checks to Powell, who used the funds to purchase a Mercedes. The jury found that Daniels structured these financial transactions for Powell so that Powell’s finances would not be scrutinized.
The investigation of the Carlos Powell drug trafficking organization was a multi-year investigation and included agents from the Drug Enforcement Agency, Internal Revenue System, Immigration and Customs, Homeland Security and local officers in Northville, Plymouth, Warren, Redford, Detroit, Macomb County and the Michigan State Police.
Former Sorrento Police Chief Sentenced for Making False Statements in Civil Rights InvestigationRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that EARL L. THERIOT, age 66, of Sorrento, Louisiana, was sentenced today by Chief U.S. District Judge Brian A. Jackson to serve twenty-four (24) months of probation as a result of his conviction for making false statements to an FBI Special Agent in connection with a criminal civil rights investigation. THERIOT was also ordered to pay a $2,500 fine.
THERIOT had previously admitted that on November 1, 2013, while serving as the Chief of Police for the Town of Sorrento and following a 911 emergency police dispatch, he contacted an unresponsive individual at a local gas station, placed her in the front seat of his police unit, and, instead of bringing her back to her residence, transported her to his office at the Sorrento Police Department where he engaged in inappropriate sexual contact with her. THERIOT later pled guilty to making numerous false statements to an FBI Special Agent and a Deputy with the Ascension Parish Sheriff’s Office who were investigating whether THERIOT violated federal civil rights laws, among other things. As a result of this prosecution, THERIOT also resigned as Chief of Police.
United States Attorney Green stated: “This defendant had no business being in a position of law enforcement authority. The people of Sorrento deserve better. I am pleased that our office played a key role in his removal and felony conviction, and I am proud of the cooperation between all the federal and state agencies. I am particularly grateful to Sheriff Jeff Wiley of the Ascension Parish Sheriff’s Office, District Attorney Ricky Babin of the 23rd Judicial District, and the FBI, all of whom worked closely with my office to ensure that the defendant would be removed from his position of trust and that his criminal activity would be addressed.”
This prosecution and investigation were conducted jointly by the United States Attorney’s Office, the Federal Bureau of Investigation, the Ascension Parish Sheriff’s Office, and the District Attorney’s Office for the 23rd Judicial District.
The case is being prosecuted by Assistant United States Attorneys Chris Dippel and Alan Stevens.
Former President of Omni Facility Pleads Guilty to Fraud and Tax EvasionRead the Press Release
A Plymouth, Michigan, man pleaded guilty today to wire fraud and tax evasion in the U.S. District Court for the Eastern District of Michigan, the Justice Department and the Internal Revenue Service (IRS) announced.
According to court documents, Michael Stover was the president of Omni Facility Services, a janitorial company located in Southfield, Michigan, and as part of his responsibilities Stover approved and paid subcontractors. Stover created a fictitious subcontractor called Envirovac Inc., and from 2004 through 2010, he created fictitious invoices from Envirovac that billed Omni for work that was never performed. Stover then approved payment of those invoices on Omni’s behalf, and over the course of this scheme, Stover embezzled approximately $2,178,423 from Omni. On his tax return for 2007, Stover evaded taxes by not reporting the income he embezzled from Omni.
Stover faces a statutory maximum sentence of 20 years in prison on the wire fraud count and five years in prison on the tax evasion count. He also faces three years of supervised release and a maximum fine of $250,000 for each count. U.S. District Judge Stephen J. Murphy set sentencing for Jan. 23, 2015.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorneys Yael T. Epstein and Kenneth C. Vert of the Tax Division prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Former Mayor of Manalapan, N.J., Found Guilty on All Counts: Mortgage Fraud, Identity Theft, and Obstruction of JusticeRead the Press Release
Defrauded Investment Client of $250,000 and Submitted Falsified Loan Application in Order to Purchase Farm in Manalapan
TRENTON, N.J. – The former mayor of Manalapan, New Jersey, was convicted at trial today on charges related to his acquisition of farmland in Monmouth County, New Jersey, U.S. Attorney Paul J. Fishman announced.
Andrew Lucas, 37, was found guilty today on all 11 counts of an indictment charging him with wire fraud, an illegal monetary transaction, loan application fraud, false statements to the IRS, aggravated identity theft, obstruction of a grand jury investigation and falsification of records in a federal investigation. The jury deliberated three hours before returning its verdict following a two-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and the evidence at trial:
On Dec.15, 2009, Lucas submitted a loan application to a New Jersey bank requesting $525,000 to finance his purchase of the Burke Farm property in Manalapan. Lucas provided the bank with falsified versions of his 2007 and 2008 tax returns, as well as a falsified version of a 2007 tax return for a relative whose name was also on the loan application. Lucas also falsely reported that he had a total of $210,000 in cash.
Lucas owned and operated Lucas Capital Advisors LLC (Lucas Capital), through which he served as an investment advisor and manager to multiple individuals. To obtain the $250,000 down payment for the property, Lucas approached Bobby Janowski, who was a client of Lucas Capital, to pitch an investment in an entity called VLM Investments LLC (VLM). On Feb. 15, 2010, Lucas presented a written note to Janowski, which stated that the $250,000 investment was to be secured by “…interest in the equipment, fixtures, inventory and accounts receivable” of VLM. However, Lucas failed to inform Janowski that at the time the note was signed, VLM did not exist. Lucas also failed to disclose to Janowski that Lucas intended to make personal use of the funds. It was not until three days later, on Feb. 18, 2010, that Lucas created VLM by registering it with the State of New Jersey and the IRS, using the name and Social Security number of Lucas’ out-of-state relative, Thomas Littlefield, without his knowledge or permission.
On Feb. 22, 2010, Lucas authorized the wiring of $250,000 from Janowski’s Lucas Capital investment account to a VLM bank account that had Lucas as the only authorized signer. On March 1, 2010, Lucas withdrew this money in the form of a bank check, which he provided the next day to the closing attorney for the purchase of the Burke Farm property.
Lucas also filed tax returns for VLM for tax years 2011 and 2012, both times listing Littlefield’s name and Social Security number without Littlefield’s knowledge or permission.
Federal investigators served Lucas with subpoenas on Feb. 7, 2013, for the records of VLM and Lucas Capital Advisors. In response, Lucas provided federal authorities with a fabricated and back-dated letter purporting to be from Littlefield concerning a transaction for the purchase of the Burke Farm property.
The counts of wire fraud and falsification of records in a federal investigation are each punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Loan application fraud is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The counts of conduction an illegal monetary transaction and obstruction of a grand jury investigation are each punishable by a maximum potential penalty of 10 years. Each of the charges of false statements to the IRS is punishable by a maximum potential penalty of five years in prison. Aggravated identity theft is punishable by a mandatory prison term of two years, to be run consecutive to any other sentence. Sentencing is scheduled for Jan. 20, 2015.
U.S. Attorney Fishman credited special agents of the FBI Red Bank Office, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and investigators with the U.S. Attorney’s Office, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Matthew Skahill in Camden and Rahul Agarwal in Newark, both of the U.S. Attorney’s Special Prosecutions Division.14-331
Defense counsel: Mario F. Gallucci Esq., and Michael DeSantis Esq., of Staten Island, N.Y.
Lucas, Andrew Indictment
Former Manager of "TheBus" Credit Union Sentenced to Jail for EmbezzlementRead the Press Release
HONOLULU – On September 18, 2014, Dona Takushi, age 54, a former Oahu Transit Services Employees Federal Credit Union (OTSEFCU) employee and manager, was sentenced on one felony count of embezzlement and misapplication of funds and two felony counts of false entries into the books of the OTSEFCU in a proceeding before United States District Judge Helen Gillmor. Takushi was sentenced to fifteen (15) months imprisonment and ordered to pay restitution in the amount of over $78,000. OTSEFCU is the credit union for current and former employees and family members of the Oahu Transit Services, the entity that operates “TheBus”.
United States Attorney Florence T. Nakakuni said that, according to the charging documents, Takushi obtained online access to the VISA payment system for OTSEFCU and falsely inputted VISA payments for herself and a family member. From approximately 2010 to 2012, Takushi made entries crediting her own account and that of her family member with $40,000 in payments which were not actually made.
Additionally, from approximately 2007 to 2012, Takushi made one hundred and fifty-three (153) false entries into the books of the OTSEFCU so that she and an associate could obtain over $55,000 in loans that they could not qualify for under OTSEFCU policies. Lastly, in 2009, Takushi falsely recorded entries concerning a 2008 Subaru Forester that a customer relinquished to OTSEFCU because he could no longer afford the OTSEFCU loan payments on the car. Takushi falsely charged-off this over $18,000 car loan and intentionally did not log the car into the repossessed collateral inventory records of OTSEFCU so that she could execute a transfer of title placing herself and her daughter on the car title as owners, all without providing any payment to OTSEFCU.
Takushi was the third former OTSEFCU employee to be sentenced for embezzlement offenses. Jenny Nishida, age 41, was sentenced to thirteen (13) months imprisonment for one felony count of embezzlement and misapplication of funds. Nicole Cheung was also sentenced to 20 days imprisonment for one felony count of embezzlement and misapplication of funds. Information has not been presented to the court linking the three together in their criminal activity.
The case was investigated by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorney Cynthia Lie.
Former Gadsden County Deputy Sheriff Indicted for Civil Rights ViolationRead the Press Release
Follow @NDFLNewsTALLAHASSEE – James Corder, 54, a former captain with the Gadsden County Sheriff’s Office, has been indicted on charges of violating the civil rights of an arrestee, obstruction of justice, and making false statements in a federal investigation. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The five-count indictment alleges that on July 25, 2013, Corder deprived an arrestee of his constitutional right to due process of law by stealing approximately $1,785 belonging to the arrestee. The indictment also alleges that Corder made false and misleading statements concerning the theft to agents of the Federal Bureau of Investigation and the Florida Department of Law Enforcement.
If convicted, Corder faces a maximum sentence of 20 years in prison for obstruction of justice, five years in prison for making false statements in a federal investigation, and one year in prison for deprivation of civil rights. Trial is scheduled for November 10, 2014, before United States District Judge Mark E. Walker.
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Assistant U.S. Attorney Karen Rhew-Miller
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Bookkeeper at Saint Gabriel the Archangel Church and School Charged with Embezzling FundsRead the Press Release
LOUISVILLE, Ky. – The former bookkeeper at Saint Gabriel the Archangel Church and School was charged today, by federal grand jury, with embezzling $83,191 in funds from the Louisville parish by means of wire fraud announced David J. Hale, United States Attorney for the Western District of Kentucky.
Beginning on or about August 13, 2010, and continuing to on or about August 6, 2013, Tammy Goodlett, 47, devised a scheme to defraud Saint Gabriel. According to the single count indictment, Goodlett committed wire fraud when, as bookkeeper, she exceeded her authorized access by transferring funds from Saint Gabriel’s bank account to her own bank accounts, made unauthorized credit card expenditures, and manipulated financial records to make unpaid debts appear paid, and by means of such fraud, obtained funds and services to which she was not entitled.
Further, on or about August 9, 2012, Goodlett, initiated an electronic transaction in the amount of $4,000 from Saint Gabriel’s bank account with Fifth Third Bank into her own personal bank account, which caused an interstate wire transaction to be initiated from Fifth Third Bank’s servers, located in Kentucky, to the Federal Reserve Bank’s servers, located in New Jersey.
If convicted at trial, Goodlett could be sentenced to no more than 20 years in prison, could be fined no more than $250,000 and serve no more than three years of supervised release.
This case is being prosecuted by Assistant United States Attorney Stephanie Zimdahl and is being investigated by the United States Secret Service and the Louisville Metro Police Department.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Beaumont ISD Employees Sentenced for Stealing over $4 MillionRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The former Director of Finance and Comptroller of the Beaumont Independent School District (BISD) have been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Devin Wayne McCraney, 35, of Beaumont, pleaded guilty on Apr. 14, 2014, to the charge of fraud upon programs receiving federal funds and was sentenced to 68 months in federal prison today by U.S. District Judge Ron Clark.
Sharika Baksh Allison, 43, of Beaumont, pleaded guilty on Apr. 14, 2014, to the charge of conspiracy to commit fraud upon programs receiving federal funds and was sentenced to 46 months in federal prison today by Judge Clark.
McCraney and Allison were also ordered to pay restitution in the amount of $4,041,705.27.
According to information presented in court, McCraney, Director of Finance for BISD, and Allison, Comptroller for BISD, devised schemes in which they embezzled over $4 million from BISD. They were indicted by a federal grand jury on Jan. 8, 2014.
“These punishments demonstrate that if you violate the public trust, being the true will of the citizens of Beaumont to have and maintain a responsible public school system, you will be punished,” said U.S. Attorney Bales. “The Beaumont school district enjoys many good, dedicated educators and employees. This is the beginning of the end for those who chose to breach our trust, and it also begins the removal of the cloud that remains over the heads of those great employees who, on a daily basis, are responsible for the care and education of Beaumont’s children.”
“These defendants knowingly and willfully abused their position of trust to steal education funds that were supposed to be used to provide services for the most innocent of victims – school children. That is unacceptable,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s South Central Regional Office. “I’m proud of the work of OIG Special Agents and our law enforcement colleagues for holding these individuals accountable for their criminal actions.”
"Personal greed put the children of BISD at risk, and eroded the public's trust in our system," said FBI Special Agent in Charge Perrye K. Turner. "Let today's sentences help restore that trust and remind others that our elected and appointed officials must and will be held accountable at all levels of government. We cannot do this job alone, and we encourage individuals with information about public corruption to come forward."
“Today’s sentencings are just one step in the process of holding certain officials accountable for breaching the public’s trust,” said Jefferson County District Attorney Cory Crenshaw. “Today’s results are another example of the task force’s cooperative - federal, state and local law enforcement - efforts to investigate corruption within the BISD. Our mission, of identifying those who have failed to uphold their duty to the children of this community by committing fraud, will continue. Those who have committed crimes will be punished, and confidence in our school district will be rebuilt.”
McCraney and Allison were both ordered to surrender to the Bureau of Prisons unit where they will be assigned by 2:00 pm on Oct. 21, 2014. McCraney requested a facility close to West Lake, LA. Allison requested the facility in Bryan/College Station, Texas, as it is the only federal facility housing women in Texas.
This case was prosecuted as part of the Joint Task Force established in March 2014 between the U.S. Attorney’s Office for the Eastern District of Texas and the Jefferson County District Attorney’s Office to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust in Jefferson County, Texas.
If you have any information related to this matter, please call the Federal Bureau of Investigation at 409-832-8571.
This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Education Office of Inspector General. This case was prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.
Foreign National Indicted for Possessing Firearm and Growing Marijuana in Mendocino National ForesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Ivan Espinoza Villafana, 24, of Mexico, charging him with conspiracy to manufacture marijuana, manufacture of marijuana, possession of a firearm by an illegal alien, and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on August 19, 2014, law enforcement officers entered a marijuana cultivation site near Ice Springs in the Mendocino National Forest in Glenn County. Villafana was arrested at the site and had a Smith & Wesson revolver in his possession. Officers also found a rifle in the camp area of the site. Significant natural resource damage was observed at the site. Vegetation and trees had been cut and removed to improve growing conditions for the marijuana plants, water was diverted from a nearby stream to water the plants, and fertilizers and pesticides were found at the site which, based on the terrain, would likely have drained into waterways in the National Forest.
This case is the product of an investigation by the U.S. Forest Service, the Glenn County Sheriff’s Office, and the California Department of Fish and Game. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Villafana faces a maximum statutory penalty of 20 years in prison and a $1 million fine for the conspiracy and marijuana manufacturing charges, and 10 years in prison and a $250,000 fine for the other charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Judge Resentences Birmingham Officer to A Year and A Day in Prison for Using Excessive ForceRead the Press Release
BIRMINGHAM – A federal judge today changed a sentence of probation to one year and day in prison for a Birmingham Police officer convicted of using excessive force when he beat a handcuffed defendant in 2007, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge Inge P. Johnson resentenced COREY L. HOOPER for depriving the civil rights of Martez Gulley when he repeatedly struck the man with his hands and fists while Gulley was handcuffed and secured in the backseat of a patrol car on Sept. 6, 2007. A federal jury convicted Hooper, 36, in 2012 for depriving Gulley's civil rights while Hooper operated under his authority as a police officer. Hooper must report to prison Dec. 1
The 11th U.S. Circuit Court of Appeals, ruling on a government appeal of the probationary sentence, vacated it in May and returned the case to the federal district court for resentencing. Prosecutors challenged the probationary sentence as unreasonable, arguing it did not satisfy the need for general deterrence of the crime of excessive use of force by police officers. The appeals court held that the original five-year probationary sentence was "substantively unreasonable," and that the district judge had "expressly declined to consider the need for Hooper's sentence to adequately deter other police officers from using excessive force."
"Most police officers honor their oaths, day in and day out, to uphold the law and protect the public, but this defendant disgraced his badge and harmed a person he was sworn to protect," Vance said. "Today's sentence reflects that abusing the authority of a police badge is a serious crime and it will be punished accordingly. I thank the FBI for its hard work investigating and compiling evidence in this case. My office remains committed to aggressive civil rights enforcement."
"This case is representative of the FBI's commitment to enforce and protect civil rights," Schwein said. "While the vast majority of law enforcement officers uphold and obey the law, in those rare instances where serious transgressions occur and the public's trust is violated, citizens should know that the FBI will conduct a complete investigation to preserve and restore that trust," he said.According to court records in the case, the blows Hooper struck caused Gulley serious injury. Gulley's "slight size in comparison to Hooper and his medical history made him particularly vulnerable to the heavy face blows delivered by Hooper during the attack," the government said in its 2013 sentencing memorandum.
The government also argued that Hooper committed perjury when he testified that he punched Gulley only after Gulley kicked at him from the patrol car. "Had the jury believed Hooper's version was truthful, they could have decided that the level of force used by Hooper was justified, or they could have decided they were not satisfied beyond a reasonable doubt that Hooper was guilty of using excessive force under the circumstances. The jury's guilty verdict reflects they did not believe Hooper's made-up version of the events."
The FBI investigated the case, which Assistant U.S. Attorney J. Patton Meadows prosecuted.
Federal Inmate Indicted for Assaulting Correctional OfficerRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment today against Mexican national Cresencio Ochoa-Tovali, 46, charging him with assaulting a federal correctional officer, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 27, 2014, Ochoa-Tovali, an inmate at the Federal Correctional Institution in Herlong, California, was walking in the recreation yard with a group of inmates when a fight broke out in a different part of the facility. After being alerted to the fight, a correctional officer ordered the group of inmates, including Ochoa‑Tovali, to sit on the ground. The inmates complied. The correctional officer approached Ochoa-Tovali, who suddenly stood up and struck the officer.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Ochoa-Tovali faces a maximum statutory penalty of eight years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Grand Jury Returns 38-Count Indictment in Connection with Alleged Investment Scheme Involving Sports DrinkRead the Press Release
Defendant Solicited More Than $7 Million From 50 Victims Or MoreSALT LAKE CITY - A federal grand jury returned a 38-count indictment Wednesday afternoon charging Randy Olshen, age 51, of Newport Beach, Calif., with mail fraud, wire fraud, and money laundering in connection with a scheme involving sports hydration drinks. At times relevant to the indictment, Olshen maintained a residence in Summit County, Utah.
The indictment alleges Olshen solicited and received more than $7 million from 50 or more victims as a part of his scheme.
According to the indictment, Olshen was one of the founders and president of an entity known as Innovative Health Solutions, LLC (IHS), organized in 2008. IHS specialized in manufacturing and selling sports hydration drinks designed to boost energy and stamina. One of the products marketed by the company was H2O Overdrive. The indictment alleges that Olshen, in an effort to promote the growth of IHS, sought investors and made representations to encourage investments in the company.
The indictment alleges that beginning around 2009 and continuing until about February 2013, Olshen devised a scheme to defraud IHS investors and divert portions of the invested funds for purposes not disclosed to investors in a manner inconsistent with his representations and promises. According to the indictment, Olshen misrepresented annual sales figures for the company. For example, according to the indictment, he represented that IHS had approximately $1.1 million in sales in 2009, when in fact, it had approximately $98,275 in sales in 2009. He represented that IHS had more than $28 million in sales in 2012, when in fact, it had approximately $579,239 in sales in 2012. He also represented that the company had large receivable accounts with various national chains such as Costco, Rite Aid, CVS, and Food Lion. In fact, no such large receivable accounts were owed to IHS.
According to the indictment, Olshen concealed material facts, including that he created two sets of IHS accounting records, one that accurately represented company finances and one that was provided to investors and potential investors; fabricated paperwork, such as sales records, to support his misrepresentations regarding the growth of IHS; failed to make numerous payments to creditors; paid a portion of investor funds to others as commissions for obtaining investments for IHS; that he personally declared Chapter 7 bankruptcy around October 18, 2011; and that he used IHS funds for his own personal benefit and expenses in excess of his reported salary.
The indictment alleges 12 counts of mail fraud, nine counts of wire fraud and 17 counts of money laundering. The potential maximum penalty for each count of mail fraud and wire fraud is 20 years with fines of $250,000. Counts 22 through 34 of money laundering have potential 20 year penalties and $500,000 penalties. Counts 35-38 of money laundering have potential 10 year sentences and fines of $250,000. A summons has been issued to the defendant to make an initial appearance on the charges Oct. 22, 2014, at 11:15 a.m. before U.S. Magistrate Judge Paul M. Warner.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being investigated by special agents of the FBI, IRS Criminal Investigation, and the Utah Division of Securities. It is being prosecuted by the U.S. Attorney’s Office in Salt Lake City.
Federal Civil Complaint Against FBI Agents Is DismissedRead the Press Release
SAN JUAN, Puerto Rico – On September 17, 2014, after three days of jury trial, U.S. Magistrate Judge Camille Velez-Rivé dismissed the civil claims filed by Plaintiff Carlos Hernandez-Cuevas alleging false arrest and malicious prosecution against FBI Special Agents William Taylor and Steven Martz, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
Plaintiff Hernandez-Cuevas alleged that after his arrest in Puerto Rico he spent three months detained in a federal penitentiary in New Jersey, where he was charged with money laundering in connection to drug trafficking activities. The criminal charges were later dismissed by the Government. In her dismissal, U.S. Magistrate Judge Camille Velez Rivé determined that the final disposition in the civil case should not go to the jury based on insufficient evidence. Judge Velez-Rivé, analyzed the evidence presented at trial and noted, in pertinent part that:
“Testimonies show that there was enough evidence through the investigation which led the agents to reasonably and logically believe that Plaintiff was a courier on July 20, 2004. As such, there was probable cause to arrest Plaintiff Hernàndez-Cuevas based on the totality of the circumstances, the evidence collected at the time including the information provided by the confidential informant and other evidence as testified, and based on the collective knowledge of all the agents who participated in the Paracash investigation.”
“The dismissal of this case upholds the legitimate actions undertaken by federal law enforcement officers during the investigation which led to Hernandez-Cuevas’ arrest.” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The government attorneys in this case were Assistant U.S. Attorney Lisa Bhatia-Gauthier and Trial Attorney Leah Taylor from the U.S. Department of Justice’s Constitutional Torts Branch.
# # #Fairview Man Sentenced for Production of Child PornogrphyRead the Press Release
Kevin S. Kolb, 44, of Fairview, Tenn., was sentenced yesterday by United States District Court Judge Aleta Trauger to 25 years in prison yesterday for five counts of production of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee.
At his plea hearing on March 31, 2014, Kolb admitted that he had taken sexually explicit images of a young girl when she was between the ages of seven and ten years old, and that he had distributed the images on the internet via email and a photograph website. Investigators also found approximately 600 sexually explicit images and 12 videos of child pornography in Kolb’s possession.
Upon his release, Kolb will remain on supervised release for life and will be required to participate in sex offender treatment, among other conditions. Kolb had faced a mandatory minimum sentence of fifteen years in prison and up to 150 years for these crimes.
This matter was investigated by the Federal Bureau of Investigation and the United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.
El Paso, Texas Man Pleads Guilty to Methamphetamine Trafficking Charge in New Mexico Federal CourtRead the Press Release
ALBUQUERQUE – Alejandro Carrillo, 37, of El Paso, Texas, pleaded guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge.
Carrillo was arrested on a criminal complaint on April 23, 2014, after a New Mexico State Police officer executed a traffic stop on his tractor trailer for a motor vehicle infraction. A consensual search of the trailer by the New Mexico State Police and U.S. Border Patrol, who were summoned to assist, revealed that Carrillo was transporting approximately nine pounds of methamphetamine that were concealed in the cab. In July of 2014, Carrillo was indicted and charged with possession of methamphetamine with intent to distribute.
Today Carrillo entered a guilty plea to the indictment and admitted that on April 23, 2014, he unlawfully possessed 4.28 kilograms of methamphetamine with the intention of transporting it from El Paso to Denver, Colo. In his plea agreement, Carrillo admitted that he was to be paid $4000.00 if he was successful in making the delivery.
Carrillo was remanded into federal custody after entering his guilty plea. He will be detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Carrillo faces a prison sentence of not less than ten years in prison.
This case was investigated by the El Paso office of HSI, the U.S. Border Patrol and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney E. Garreth Winstead, III of the Las Cruces Branch Office.
East Islip Doctor Pleads Guilty to the Illegal Distribution of OxycodoneRead the Press Release
Carmine G. Mandarano, a medical doctor whose practice is located in East Islip, New York, pleaded guilty today to the illegal distribution of oxycodone, a highly addictive prescription pain killer. Mandarano entered his plea before United States Magistrate Judge Gary R. Brown at the United States Courthouse located in Central Islip, New York. At sentencing, Mandarano faces a maximum of 20 years’ imprisonment and a $1 million fine. Mandarano has agreed to forfeit $150,000 in criminally-derived proceeds to the government.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York; and Tom F. O’Donnell, Special Agent-in- Charge, Health and Human Services, Office of the Inspector General (HHS/OIG), New York Regional Office.
“Medical professionals who hand out prescriptions for narcotics when there is no legimate medical need to do so are drug dealers, pure and simple. Doctors who violate their oaths to do no harm, and the law, will continue to be held accountable,” Ms. Lynch said, extending her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
During his plea, Mandarano admitted that in 2011 he issued a prescription for oxycodone to a patient that he knew was using illegal narcotics, had obtained multiple narcotics prescriptions from other medical professionals, and was abusing painkillers.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.
Mandarano’s guilty plea is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case was prosecuted by Assistant United States Attorney Lara Treinis Gatz.
The Defendant:
Name: CARMINE G. MANDARANO
Age: 62
Residence: Northport, NY
Dorchester Woman Pleads Guilty in Connection with Unlicensed Cosmetic InjectionsRead the Press Release
BOSTON –A Dorchester woman pleaded guilty yesterday in connection with offering cosmetic buttock and lip injections in exchange for money.
Valentina Perez Tavarez, a/k/a Rossi Tavarez, 37, pleaded guilty to receipt in interstate commerce of a misbranded device and the proffered delivery thereof for pay. U.S. District Judge F. Dennis Saylor IV scheduled sentencing for Dec. 9, 2014
Between February and September 2011, Tavarez, who was not a licensed physician or nurse, offered buttock and lip augmentation injections in her Dorchester home using a substance she referred to as “Metacor” and “Metacrill.” In a recorded conversation she stated, “Metacor” is “very safe,” and also stated that, “in this country [] like you know that’s illegal.” Tavarez referred to the substance as the “best stuff” that lasts “forever.” Tavarez offered to charge $700 per injection into each buttock.On Sept. 9, 2011, special agents visited Tavarez at her residence in Dorchester at which time Tavarez admitted that she had performed the procedure on at least 10 customers. From her bedroom closet she retrieved an opaque plastic bottle containing a clear, viscous liquid, along with a FedEx shipping box. The bottle bore a label “Estetical Plus 100% Natural,” along with a written description in Spanish that referred to its content as massage oil and provided directions for external skin application. The bottle did not provide any information or directions for using the substance for subcutaneous cosmetic injections. The bottle had been shipped from Colombia via Federal Express. Tavarez admitted that she had arranged for the shipment of the substance with a laboratory in Columbia and that she had paid by wire $500 per box containing three bottles of the substance.
The charging statute provides a sentence of no greater than one year in prison, one year of supervised release, five years of probation, and a fine of $10,000. 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; James Royal, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Maxim Grinberg of Ortiz’s Health Care Fraud Unit.
Con Man Sentenced to over Five Years in Prison for Fraud SchemeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that Chief U.S. District Judge Brian A. Jackson sentenced JOHNATHAN E. WILLIAMS, age 34, of Baton Rouge, Louisiana, to serve sixty three (63) months in federal prison as a result of a multi-year fraud scheme. The defendant was also ordered to pay $835,650 in restitution and forfeit an additional $500,000 as illegal proceeds of his scheme. Upon his release from federal prison, WILLIAMS will be required to serve 2 years of supervised release.
WILLIAMS had previously pled guilty to a wire fraud scheme in which, from 2008 through 2011, he defrauded dozens of victims to obtain money that he could use to fund his gambling activity and other personal expenses. To accomplish his scheme, among a variety of other false stories, WILLIAMS would tell his victims that he had a trust fund containing millions of dollars, and that he would be able to repay his victims as soon as he gained access to the trust fund. WILLIAMS falsely told some victims that he was an heir to the family that produces Tabasco hot sauce. As part of the scheme, WILLIAMS used a false and fictitious letter, on an attorney’s letterhead, falsely representing that WILLIAMS had a trust fund worth “in excess of $20 million.” Throughout his scheme, WILLIAMS defrauded more than thirty (30) victims and obtained more than $800,000. At the conclusion of today’s sentencing, because the Court found that WILLIAMS had continued to engage in criminal conduct even after his March 2014 guilty plea, the Court revoked WILLIAMS’s release and ordered him immediately remanded to the custody of the United States Marshal.
U.S. Attorney Green stated: “We hope today’s sentence sends a strong message to those who would engage in fraud to line their pockets. This defendant’s long-running scheme caused his victims tremendous hardship, both financial and emotional, threatening the financial security and retirement plans of many along the way. My office will work hard to aggressively pursue con artists like Mr. Williams.”
This investigation was conducted by the Federal Bureau of Investigation, with assistance from the Louisiana Department of Public Safety and Corrections’ Division of Probation and Parole. The case is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief of the Criminal Division.
Chinese Restaurant Manager Sentenced for Harboring Illegal Aliens for Commercial GainRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Zhou Wang Ni, 48, of Rochester, NY, who was convicted of harboring illegal aliens for commercial gain, was sentenced two years probation by U.S. District Court Judge David G. Larimer. The defendant was also placed on 3 months of home detention and was ordered to pay a $5,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant is the manager of the Grand Super Buffet Chinese Restaurant located on Jefferson Road in Henrietta, NY. As manager, Ni hired several illegal aliens to work in the restaurant who he knew were not lawfully present in the United States. The defendant housed these workers in properties he owned around Rochester and paid them in cash. While conducting surveillance, federal agents observed Ni driving these individuals to work at the restaurant on several occasions.
Homeland Security Investigations conducted an immigration audit of the restaurant during the course of the investigation during which the defendant concealed the fact that those illegal aliens were working. However, agents had video footage of those same workers being picked up by the defendant in the morning, being driven to the restaurant, and then working inside during the day.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Captured Fugitive Guilty of Health Care Fraud ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A 44-year-old captured fugitive has pleaded guilty in connection with a federal health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Vivian Yusuf, formerly of Port Harcourt, Nigeria, pleaded guilty to conspiracy to commit health care fraud on Sep. 17, 2014 before U.S. Magistrate Judge John D. Love.
Yusuf, a fugitive, wanted since March 2011, was arrested on June 3, 2014 at George Bush Intercontinental Airport in Houston. Yusuf had been indicted for conspiracy to commit health care fraud, health care fraud, and aggravated identity theft on Jan. 12, 2012.
According to information presented in court, Yusuf, the former owner of Ivy Health Care Supply, a Houston-area medical supply company, and Aghaegbuna “Ike” Odelugo, James Reese, and others carried out a scheme to defraud Medicare through the marketing of power wheelchairs and accessories, as well as “ortho kits,” which primarily consisted of a bag of orthotic items, including braces, wraps, and supports, and a heat lamp or heat pad. As part of the scheme, the defendant and her co-conspirators illegally obtained protected health information, including names, dates of birth, and Medicare numbers from elderly individuals. Yusuf and her co-conspirators supplied beneficiaries with kits and power wheelchairs which were not prescribed or otherwise authorized by a physician and which were not wanted by the beneficiaries. Claims were submitted by the defendant and her co-conspirators for approximately 790 beneficiaries located primarily in Texas and Louisiana. In some instances, physicians’ signatures were forged and false claims were submitted to Medicare in the names of Medicare beneficiaries who were deceased. By means of fraudulent billing practices, the defendant and her co-conspirators unlawfully submitted false and fraudulent claims to Medicare of more than $3.4 million and obtained more than $1.6 million.
Odelugo and Reese were indicted for their involvement in similar health care fraud schemes. Odelugo pleaded guilty to conspiracy to commit health care fraud, health care fraud, and money laundering and was sentenced to 72 months in federal prison. The loss to Medicare as a result of Odelugo’s scheme was approximately $9.9 million. Reese pleaded guilty to health care fraud and tax evasion and was sentenced to 180 months in federal prison. The loss to Medicare as a result of Reese’s scheme was approximately $8.6 million.Yusuf faces up to 10 years in federal prison when she appears before U.S. District Judge Michael H. Schneider for sentencing. A sentencing date has not been set.
This case is being investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Nathaniel C. Kummerfeld and Special Assistant U.S. Attorney Ken McGurk are prosecuting this case.
Cape Girardeau Neurosurgeon, Owner of Medical Device Supplier and Their Two Companies Indicted on Federal Anti-Kickback ChargesRead the Press Release
Cape Girardeau, MO –MIDWEST NEUROSURGEONS LLC and its owner, DR. SONJAY FONN, and DS MEDICAL LLC and its owner, DEBORAH SEEGER, were indicted for allegedly violating the Medicare Anti-Kickback Statute by conspiring to solicit and receive commissions from medical device manufacturers related to the purchase of spinal implants and supplies used during spinal fusion surgeries performed by Dr. Fonn.
According to the indictment, Dr. Fonn and his fiancée, Ms. Seeger, both of Cape Girardeau, jointly operated DS Medical LLC to serve as the distributor of medical devices and supplies to Dr. Fonn and his neurosurgery practice, Midwest Neurosurgeons LLC. Through DS Medical, Ms. Seeger and DS Medical demanded and were paid exorbitant commissions by medical device manufacturers for medical devices and supplies purchased by the hospital where Dr. Fonn performed spinal fusion surgeries. The hospital’s purchases were based on Dr. Fonn’s decision to use those devices and supplies during operations he performed. According to the indictment, once DS Medical started operating, Dr. Fonn altered the way he practiced medicine, generally using more spinal implants in each of his surgeries while performing more surgeries than he typically performed before or after DS Medical was operating. In December 2008, the first full month of operation for DS Medical, Dr. Fonn ordered approximately $1,330,090 worth of spinal implants for his surgeries, more than twice as much as his nearest medical peer in the local health care market. The commissions paid to DS Medical and Ms. Seeger by the manufacturers were allegedly used to purchase a house where Dr. Fonn and Seeger resided, a boat, an airplane and various home improvements, which they shared.
Dr. Sonjay J. Fonn, Deborah Seeger, DS Medical, LLC and Midwest Neurosurgeons, LLC were indicted by a federal grand jury today in Cape Girardeau on one felony count of conspiracy to solicit and receive illegal kickbacks and three felony counts of anti-kickback violations.
If convicted, each of the charges against Dr. Fonn and Deborah Seeger carry a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services-Office of the Inspector General. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Caldwell Man Indicted for Dumping Tires on Public LandRead the Press Release
Boise - Terry Dorton Anderson, 49, of Caldwell, Idaho, made his initial appearance today on charges of two counts of felony injury to government land, U.S. Attorney Wendy J. Olson announced. He was indicted on September 9, 2014, by a federal grand jury in Boise. Trial is set for November 10, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The indictment alleges that between July and December 2012, Anderson dumped junk tires in Squaw Creek Canyon near Highway 95 south of Marsing, and near a dirt road off Highway 78. The lands where the dumping occurred are Federal public lands administered by the Bureau of Land Management in Owyhee County. The part of Squaw Creek Canyon where the dumping of about 500 tires occurred is nearly 1,700 feet deep. The indictment alleges that it will cost between $32,049 and $56,649 to remove the tires, clean up, and rehabilitate that area of Squaw Creek Canyon. The Indictment also alleges that it will cost between $7,156 and $13,027 to remove and clean up the approximately 400 tires dumped off Highway 78.
Each felony charge of injury to federal public lands is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case was investigated by the Bureau of Land Management, Idaho Department of Environmental Quality, Canyon County Sheriff’s Office, and Owyhee County Sheriff’s and Prosecutor’s Offices.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Beckley Woman Receives Prison Sentence for Heroin DistributionRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Teruko Miller, 29, of Beckley, West Virginia was sentenced today to one year in federal prison for distribution of heroin. Miller previously pled guilty in June of 2014, to selling heroin to a person who was cooperating with law enforcement authorities. The drug deal took place on Stanaford Road in Beckley, West Virginia.
This case was investigated by the Beckley/Raleigh County Drug and Violent Crime Unit. This case was 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 United States 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.
Defendant was sentenced by United States District Court Judge Irene C. Berger.
Beaumont Federal Inmate Sentenced for Deadly AssaultRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old Forsyth, Missouri man serving time at a Beaumont federal prison has been sentenced for the deadly assault of another inmate in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jacob Smith pleaded guilty on Apr. 16, 2014 to assault with intent to commit murder and was sentenced to 150 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 25, 2012, Smith was incarcerated at the Beaumont Federal Correctional Institution – Medium facility in Beaumont, Texas. Smith and another prisoner entered the cell of inmate Edward Lee Bowlin, who they incorrectly believed was incarcerated for crimes related to sexual contact with children. They assaulted Bowlin with their hands and feet and then left the cell. Shortly thereafter, Smith returned to Bowlin’s cell and continued to beat him causing Bowlin to sustain serious head and brain trauma. Bowlin fell into a coma, in which he remained until his death on Nov. 25, 2013. Smith was indicted by a federal grand jury on Aug. 7, 2013.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Baton Rouge Man Indicted for Fraud Against Healthcare Entities and Aggravated Identity TheftRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against LARRY D. BUTLER, age 49, of Baton Rouge, Louisiana. The indictment charges the defendant with wire fraud, in violation of Title 18, United States Code, Section 1343, false representation of a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(B), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The indictment also includes a forfeiture allegation which requires the defendant to forfeit the proceeds of his fraud if convicted.
The indictment alleges that the defendant engaged in a scheme to defraud multiple healthcare entities from July 2013 through August 2014. The defendant allegedly used false credentials, false social security numbers, a false California driver’s license, and other false documentation in order to conceal his criminal history and obtain the pay and benefits associated with being employed by the victims. He also allegedly stole from the victims through the misuse of company credit cards for personal expenses, including furniture, travel, and meals. According to the indictment, the defendant sought to fraudulently obtain almost $300,000 through the scheme.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Secret Service, and the East Baton Rouge Parish Sheriff’s Office, along with the cooperation and assistance of the District Attorney’s Office for the Nineteenth Judicial District. It is being prosecuted by Assistant United States Attorney Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Barboursville Pharmacy Owner Arraigned on Federal ChargesRead the Press Release
Forty-count Indictment Alleges Drug Distribution and Money Laundering
Huntington, W.Va. – United States Attorney Booth Goodwin announced today that Kofe Ohene Agyekum appeared before United States Magistrate Judge Cheryl A. Eifert yesterday for an arraignment on a forty-count indictment charging him with drug distribution and money laundering. Agyekum pleaded not guilty to the charges.
The indictment, returned on September 10, 2014, by a federal grand jury sitting in Huntington, alleges that Agyekum was the director and president of KAYPAT Medical Inc., which did business as A+ Care Pharmacy, located in Barboursville, West Virginia. Agyekum was employed at A+ Pharmacy as a pharmacist intern.
Count One of the indictment alleges that Agyekum conspired to unlawfully distribute oxycodone and hydromorphone from August 2013 through July 2014. Counts Two through Four of the indictment allege that Agyekum unlawfully distributed oxycodone and hydromorphone on specific days in June and July of 2014. The remaining thirty-five counts in the indictment allege that Agyekum engaged in money laundering by depositing cash proceeds from the drug conspiracies at various banks in Barboursville with the intent of concealing the source of the cash.
The indictment also seeks to forfeit more than $2 million in cash and a luxury vehicle.
The case has been assigned to Chief United States District Judge Robert C. Chambers. The trial date has been set for November 18, 2014.
The case is being investigated by the Drug Enforcement Administration and the Internal Revenue Service. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution.
Note: An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Attorney General Eric Holder Announces National Effort by the Justice Department to Build Trust Between Law Enforcement and the Communities They ServeRead the Press Release
Memphis, TN – Attorney General Eric Holder announced today the launch of the Justice Department’s National Initiative for Building Community Trust and Justice. Members of the Attorney General’s Advisory Committee (AGAC)’s Racial Disparities working group joined the Attorney General for the announcement in Washington, DC. Edward L. Stanton III, United States Attorney for the Western District of Tennessee, is a member of the AGAC Racial Disparities working group and joined the Attorney General for today’s announcement in Washington.
Funded through a $4.75 million grant, the initiative will create a substantial investment in training, evidence-based strategies, policy development and research to combat distrust and hostility between law enforcement and the communities they serve. Recent protests in Ferguson, Missouri, following an officer-involved shooting have brought national attention to the importance of strong police-community relationships, which has been a priority for the Justice Department under Attorney General Holder.
The initiative, which will be an ongoing partnership with the Justice Department, will provide training to law enforcement and communities on bias reduction and procedural fairness and will apply evidence-based strategies in five pilot sites around the country. It will also establish a clearinghouse where information, research, and technical assistance are readily accessible for law enforcement, criminal justice practitioners and community leaders.
United States Attorney Stanton said, "I was pleased to join Attorney General Holder for today's announcement of this key initiative, which will help ensure fairness, eliminate bias, and build community engagement throughout the country. My office and our law enforcement partners have always worked hard to build and preserve strong, cooperative police-community relationships throughout West Tennessee. We will continue to make this a top priority."
In a holistic approach, the initiative will simultaneously address the tenets of procedural justice, reducing implicit bias and facilitating racial reconciliation. The initiative will compliment and be advised by other Justice Department components such as the Office of Justice Programs, the Office of Community Oriented Policing Services, the Civil Rights Division and the Community Relations Service.
Attorney Charged with Concealing A Fugitive from ArrestRead the Press Release
SAN JUAN, Puerto Rico – On September 16, 2014, a federal grand jury in the District of Puerto Rico returned an indictment against state criminal defense attorney, Lemuel Velilla Reyes, charged with concealing a person from arrest, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. This investigation was led by the Federal Bureau of Investigations (FBI) Public Corruptions Squad and the assistance of the Drug Enforcement Administration (DEA).
On July 14, 2011, Velilla-Reyes legally represented federal fugitive Wilfredo Rodríguez- Rodríguez, aka “Fredo”, aka “Cape”, aka “Capellan”, under the false name of “Felix Otero-Torres” on local drug and weapon charges.
Wilfredo Rodríguez-Rodríguez has an outstanding arrest warrant since July 14, 2010, in a federal case U.S. v. José Colón-de Jesus, et. al. Crim. No. 10-251 (JAF) where he is listed the fifth individual in the 110 codefendant indictment for participating as a leader in a drug trafficking conspiracy to distribute controlled substances at the Virgilio Davila, Las Gardenias, Brisas de Bayamón, and Falin Torrech housing projects, and other areas within the Bayamon Municipality. Velilla-Reyes was known as the attorney for the drug trafficking organization which Rodríguez-Rodríguez was a part of, and had legally represented him in a prior criminal state case in 2006.
In the early morning hours of July 14, 2011, the Police of Puerto Rico arrested Rodríguez-Rodríguez in Toa Baja while they were executing state arrest warrants. Upon his arrest, he provided the false name of Felix Otero-Torres and did not provide or have in his person any identification documents.
While at the police station, attorney Velilla-Reyes arrived to legally represent Rodríguez-Rodríguez under the false name he had provided. Velilla-Reyes stood by while the charges against his client where brought forth under the false name. He then appeared in court during the local probable cause proceedings and falsely represented to the court that his client Felix Otero-Torres could not recall his social security number or his full address. Velilla-Reyes requested that bail be set without electronic monitoring and told the court he would continue to represent his client throughout all the proceedings. He also assured his client’s fulfillment of pre-trial release conditions and his appearance in court. Rodríguez-Rodríguez, who was affirmatively identified during the days that followed, did not show up to the police station for booking and did not return to any court proceeding. Velilla-Reyes continued as the attorney in record, but failed to appear in any of the subsequent court hearings. To this day Wilfredo Rodríguez-Rodríguez is still a fugitive.
“Our efforts to eradicate corruption in the judicial system of Puerto Rico will include investigations and prosecutions such as this one. The actions committed by this attorney and his effort to conceal a federal fugitive from arrest through illegal conduct, undermine the public’s trust in the judicial system, which is a cornerstone to our democracy.” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“Acts like the ones alleged to have been committed by Attorney Lemuel Velilla, in this indictment, undermine the credibility of the judicial system and violates the trust and expectation of the residents of Puerto Rico.” said Carlos Cases, Special Agent in Charge for the FBI. “The FBI is fully committed to identify and investigate corruption at all levels.”
Assistant U.S. Attorneys Myriam Y. Fernàndez and Jenifer Y. Hernàndez, Deputy Chiefs of the Narcotics Unit, are in charge of the prosecution of the case. If convicted the defendant faces a maximum sentence of five years or a fine of no more than $250,000.00, or both for count Title 18, United State Code, Section 1071. Indictments contain only charges and are not evidence of guilt. The defendant is presumed to be innocent until and unless proven guilty.
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Amite Man, Torrie Brumfield, Sentenced to 16 Years in Prison on Federal Drug ChargesRead the Press Release
U.S. Attorney Kenneth Polite announced that TORRIE BRUMFIELD, a resident of Amite, Louisiana, was sentenced today by U.S. District Judge Carl J. Barbier to serve 16 years in prison for his role in a large-scale drug conspiracy.
On March 25, 2014, BRUMFIELD was convicted by a federal jury for conspiracy to possess and distribute, and distribution of more than 100 grams of crack cocaine.
In a separate trial in the same case, co-defendant MARCO DILLON was also found guilty of a conspiracy to possess and distribute more than 100 grams of crack cocaine. DILLON received a sentence of 97 months in prison. Co-defendants FLOYD HAMPTON, WILL DUNN and DAVID CHANEY plead guilty to their role in the conspiracy and testified at the trials of BRUMFIELD and DILLON. HAMPTON, DUNN and CHANEY were sentenced to 36 months, 12 months and a day, and 23 months, respectively.
U.S. Attorney Polite thanked the following investigating agencies for their efforts: Drug Enforcement Administration (“DEA”) New Orleans Field Office, Tangipahoa Sheriff’s Office, and the Hammond Police Department.
The case was prosecuted by Assistant United States Attorneys John F. Murphy and Michael E. McMahon.
Agawam Man Sentenced for EmbezzlementRead the Press Release
BOSTON – An Agawam tax preparer was sentenced yesterday in U.S. District Court in Springfield for embezzling more than $400,000 from a corporate client.
James F. Hansmann, 86, of Agawam, Mass., was sentenced by U.S. District Judge Michael A. Ponsor to three years of probation and ordered to pay $408,035 in restitution to his client and $86,692 to the Internal Revenue Service. Hansmann also is permanently enjoined from preparing tax returns. In July 2013, Hansmann pleaded guilty to mail fraud and tax evasion.
Hansmann prepared corporate tax returns for a West Springfield company. Between 2007 and 2011, he instructed the company president to make out checks for estimated tax payments which he promised he was transmitting to the Internal Revenue Service. Instead, Hansmann deposited the checks into his personal bank accounts and used the money to pay person expenses. The West Springfield company was left with a huge tax bill for the years of unpaid taxes, which its president believed had been fully paid.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service, made announcement. The case was prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
17 September 2014
United States Attorney Asks Court to Dismiss Federal Child Enticement IndictmentsRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, has filed motions with the appropriate district courts to dismiss the federal indictments against Kenneth Wayne Thompson, age 23, of Bradford, Arkansas; Benjamin Cade Vardell, age 20, of Jonesboro, Arkansas; and Lucas Aaron Oden, age 20, of Paragould, Arkansas. The Indictments charged each defendant with one count of using facilities and means of interstate commerce to entice a minor to engage in sexual activity in violation of Title 18, United States Code, Section 2422(b). Prior to filing the motions to dismiss, all three defendants pleaded guilty to sexual assault in the second degree and were sentenced in Craighead County, Arkansas, Circuit Court.
“When I was sworn in as United States Attorney, a friend sent me a copy of the United States Supreme Court’s opinion in United States v. Berger. In that opinion, Justice Sutherland writes:
The United States Attorney is the representative not of an ordinary party to a controversy, but of a sovereignty whose obligation to govern impartially is as compelling as its obligation to govern at all; and whose interest, therefore, in a criminal prosecution is not that it shall win a case, but that justice shall be done. As such, he is in a peculiar and very definite sense the servant of the law, the twofold aim of which is that guilt shall not escape or innocence suffer. He may prosecute with earnestness and vigor—indeed, he should do so. But, while he may strike hard blows, he is not at liberty to strike foul ones. It is as much his duty to refrain from improper methods calculated to produce a wrongful conviction as it is to use every legitimate means to bring about a just one.
I strive each day to live up to this ideal.” Thyer stated. “With that in mind, I do not believe that justice will be done in these cases by continuing these particular federal prosecutions. While I am firmly convinced that the defendants’ conduct was unlawful, I do not believe that a possible federal conviction and the ten-year mandatory minimum sentence that would accompany such a conviction would serve the ends of justice. For that reason, I have chosen to exercise my prosecutorial discretion and have directed my office to file motions to dismiss in each of these cases.” Thyer went on to say. “While neither I personally nor any member of my office took any position on the sentences received by these defendants in state court, I personally believe that they were appropriate based on the facts of the cases as I know them.” Thyer concluded.
U.S. Medical Center Supervisor Pleads Guilty to Concealing Assault on InmateRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an officer at the U.S. Medical Center for Federal Prisoners in Springfield, Mo., pleaded guilty in federal court today to dissuading an inmate at the facility from reporting an assault by a correctional officer.
James C. Myrick, 42, of Nixa, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to dissuading a federal inmate from reporting the possible commission of a federal offense.
According to today’s plea agreement, Shawn Springer, an inmate at the U.S. Medical Center for Federal Prisoners, was struck by a correctional officer, identified as Officer D.P., on Dec. 3, 2012. The incident occurred while Springer was in the office Myrick shared with another lieutenant. Springer had been involved in a dispute with a nurse, the wife of the correctional officer, earlier that day.
Myrick admitted that, immediately after the incident, he encouraged Springer not to tell anyone that he was struck in the head by Officer D.P. Springer was offered improved cell accommodations for his silence. After leaving Myrick’s office, Springer was moved to a cell where he had access to a television. As a result of Myrick’s inducement, Springer told a nurse that he had hit his head while cleaning his bunk, instead of telling the nurse that he was hit in the head by Officer D.P. in Myrick’s presence.
The next day, Springer reported to a psychologist that he had been assaulted by Officer D.P. During the investigation that followed, Myrick submitted a memo that claimed Springer’s head injury was pre-existing and made no mention of Officer D.P. using force on Springer. This statement was contradicted by other staff members who provided sworn affidavits that supported the conclusion that Springer’s injury was not pre-existing to his visit to Myrick’s office.
An investigator from the U.S. Department of Justice Office of the Inspector General was dispatched to the Federal Medical Center and interviewed Myrick and others. Myrick initially claimed no force was used on Springer, but later admitted that he failed to report that Springer had been struck by Officer D.P. in his office. He also admitted that his original memo was intentionally misleading.
Officer D.P. admitted striking Springer but denied trying to conceal the matter. Officer D.P. told the investigator that he asked Myrick if a memo was required and Myrick told him no.
Under federal statutes, Myrick is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Department of Justice Office of the Inspector General and the U.S. Medical Center for Federal Prisoners – Special Investigation Unit.U.S. District Court Judge Orders Shannon Conley to Remain in Custody Pending SentencingRead the Press Release
DENVER – U.S. District Court Judge Raymond P. Moore this afternoon issued an order denying Shannon Conley’s request for bond pending sentencing. Conley, therefore, will remain in custody pending sentencing. Judge Moore’s order is attached.
Conley recently pled guilty to conspiracy to provide material support to a designated foreign terrorist organization (ISIS). That charge carries a penalty of not more than 5 years in federal prison, and up to a $250,000 fine. She is scheduled to be sentenced by Judge Moore on January 23, 2015 at 1:30 p.m.
Two South Mississippi Residents Sentenced on Drug ChargesRead the Press Release
Jackson, Miss – Craig Lamark Kaho, 44, of McComb, and Latoya Renae Bonds, 30, of Summit, were sentenced this week by U.S. District Judge Carlton W. Reeves on charges relating to cocaine distribution in Pike County, Mississippi, announced U.S. Attorney Gregory K. Davis.
Kaho was sentenced to 78 months in federal prison followed by three years of supervised release for his role in a conspiracy to possess with intent to distribute cocaine base (“crack”).
Bonds was sentenced to 56 months in federal prison followed by three years of supervised release and a $1,500.00 fine for possession with intent to distribute cocaine base.
A third defendant in the case, Jermaine Henderson, is scheduled for sentencing on October 1, 2014.
Kaho and Bonds were indicted following an Organized Crime Drug Enforcement Task Force investigation into drug distribution in the Pike County, Mississippi area dubbed “Operation Lights Out in PG”. The investigation was led by DEA, HIDTA, and the Mississippi Bureau of Narcotics with assistance from the Pike County Sheriff’s Department, the McComb Police Department and the Mississippi Highway Patrol. Assistant U.S. Attorney Erin Chalk prosecuted the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Two More Men Admit Roles in Armed Robbery of New Jersey Target Store on Black Friday 2012Read the Press Release
TRENTON, N.J. –Two Newark men admitted this week to robbing a Target Store in Union, New Jersey, on “Black Friday” in November 2012, U.S. Attorney Paul J. Fishman announced today.
Lavell Jones, 29, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an indictment charging him with one count of Hobbs Act robbery. DaQuaan Vaughn, 36, pleaded guilty before Judge Thompson on Sept. 16, 2014, to a superseding information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence. Vaughn also pleaded guilty to an unrelated count of firearms trafficking in connection with his unlawful sale of firearms between April and June 2012.
Vaughn, Jones, and two other men – Darrell A. Carter, 24, of Irvington and Maryland Liggins, 29, of Newark – were arrested on June 19, 2013, and charged by criminal complaint in connection with the Target robbery. Carter and Liggins each pleaded guilty before Judge Thompson in May 2014 to informations charging them with Hobbs Act robbery. Carter also pleaded guilty to one count of using a firearm in furtherance of a crime of violence. Sentencing dates for both Carter and Liggins are pending.
According to documents filed in this case and statements made in court:On Nov. 23, 2012, Vaughn, Carter, Jones and Liggins robbed a Target store located on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. Jones posed as a shopper and served as a lookout inside the store. He alerted the others when the store was closing and money was being transferred from the store’s registers to the cash room. Liggins served as the getaway driver.
Before closing, Carter and Vaughn waited in the bathroom. When an employee entered the bathroom, Carter and Vaughn restrained the employee and threatened him with a firearm. After the store closed, Carter and Vaughn entered the cash room, restrained other Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe. Then they fled the store and ran out to a vehicle – driven by Liggins – that was parked on the shoulder of nearby Route 78.
The charge of Hobbs Act robbery carries a maximum potential penalty of 20 years in prison. The charge of using a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must run consecutively to any other prison term. The firearms trafficking charge against Vaughn carries a maximum potential penalty of five years in prison. Each of these counts also carries a maximum fine of $250,000. Sentencing for Vaughn is scheduled for Jan. 6, 2015, and sentencing for Jones is scheduled for Jan. 7, 2015.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the guilty pleas. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense Counsel:Carter: Peter Carter Esq., Newark
Liggins: Joseph Rotella Esq., Newark
Vaughn: Timothy Donohue Esq., West Orange, New Jersey
Jones: Richie Roberts Esq., NewarkJones, Lavell Indictment
Vaughn, DaQuaan InformationTwo Men Plead Guilty in International Stolen Car and Identity Theft Internet ScamRead the Press Release
San Diego – United States Attorney Laura E. Duffy announced that Edmund Seshie and Abdul Rezak Shaib pled guilty today to being part of a West African-based organized international car theft and identity theft ring.
In their guilty pleas, Shaib and Sheshie admitted purchasing stolen credit cards and corresponding counterfeit driver’s licenses in bulk from a Singapore-based “carder” website. So-called “carders” are people who buy, sell, and trade online the credit card data stolen from phishing sites or from large data breaches at retail stores. The stolen identities were then used to fraudulently purchase vehicles from U.S.-based car dealerships. In all, the defendants purchased scores of vehicles valued at almost a half a million dollars prior to the discovery of their scheme.
According to documents filed in court, co-defendant Henry Addo allegedly ran this international car theft ring from his home in Ghana. From various locations in Ghana, Addo placed international phone calls to car dealerships in the United States. During these call, he assumed the identity of the stolen credit card holders during the negotiation of each purchase, the indictment said. He then allegedly used a series of email accounts to transmit the counterfeit driver’s licenses and stolen credit card information to United States-based car dealerships.
According to the indictment, Addo motivated his United States-based co-conspirators to participate in the conspiracy by invoking “Sakawa,” which is a Ghanaian practice that combines modern internet-based fraud practices targeting foreigners with traditional African religious rituals.
Defendants paid for the cars using the stolen credit cards and (using the same stolen credit cards) paid automobile transportation companies to deliver the vehicles to various staging locations throughout the United States. Once multiple vehicles were accumulated at a particular staging location, a tractor trailer transported them in cargo containers to a New Jersey port for export to Africa, where the cars were then sold on the open market.
“This case is notable in terms of its level of sophistication, its audacious methods and the callous disregard for victims,” said U.S. Attorney Laura Duffy.” These guilty pleas are the first strike back on behalf of identity theft victims who now have to reclaim their good names – a frustrating task that can take years. We will continue to make these cases a priority.”
The FBI recommends that individuals take the following steps to minimize the chance of becoming a victim of identity theft:
- Don’t carry your Social Security card or any document containing your Social Security Number.
- Don’t give a business your Social Security Number just because they ask. Give it only when required.
- Protect your financial information.
- Check your credit report every 12 months.
- Secure personal information in your home.
- Protect your personal computers by using firewalls, anti-spam/virus software, update security patches, and change passwords for Internet accounts.
- Don’t give personal information over the phone, through the mail or on the Internet unless you have initiated the contact or you are sure you know who you are dealing with.
Co-defendant Addo remains a fugitive and is believed to be residing in Africa.
DEFENDANT Edmund Seshie, aka Eddie Blay Age: 42 Columbus, Ohio Abdul Rezak Shaib, aka Zak Age: 28 Bronx, New York CHARGESConspiracy to Commit Mail and Wire Fraud – Title 18, U.S.C., Section 1349
Maximum penalty: 20 years’ imprisonment and $250,000 fine INVESTIGATING AGENCYFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Three Time Robber of Trucks Carrying Pharmaceuticals Exiled to 25 Years in PrisonRead the Press Release
Used Guns, and Caused Serious Injury to One Truck Driver; Attempted to Rob a Fourth Truck
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Robert Neil Sampson, age 53, of Lanham, Maryland, today to 25 years in prison followed by three years of supervised release for conspiring to commit robbery, robbery and using a firearm during a robbery.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Douglas A. Middleton, Chief of the Henrico County (Virginia) Police Division.
According to his plea agreement, Sampson and others committed three armed robberies in 2012 of two courier companies, Accurate Courier Express (ACE) and The Courier Connection (TCC), and attempted a fourth robbery. Both companies had contracts with AmerisourceBergen Corporation (ABC) to transport pharmaceuticals from Glen Allen, Virginia to Landover, Maryland, and from Landover to other locations in Maryland and the Washington D.C. metropolitan area.
On May 29, 2012, an ACE driver transported an ABC shipment of pharmaceuticals from Glen Allen to Landover. After the driver backed the tractor trailer up to the cargo door of the facility, Sampson and a co-conspirator pulled up in a motor vehicle. The co-conspirator pointed a handgun at the driver and ordered him into the tractor cab. Sampson then entered the tractor cab. The driver was ordered into the sleeper portion of the tractor cab and told to put a pillow case over his head. The driver refused. Sampson and the co-conspirator threatened to shoot him, but then allowed the driver to run away. A short time later, Prince George’s County Police Department patrol units located the tractor trailer on Nicole Drive in Lanham. A subsequent inventory revealed that pharmaceuticals had been stolen.
On July 13th, as an ACE driver was driving a shipment of pharmaceuticals out of ABC’s distribution center in Glen Allen, Sampson and a group of co-conspirators used a number of vehicles to block the delivery truck approximately 300 feet from the front gate. Several co-conspirators, armed with handguns, removed the ACE driver from the cab of the vehicle, wounded the driver with a taser gun, zip-tied the driver’s hands and feet and rolled him down a steep embankment. The co-conspirators then drove off with the truck. Investigators later found the truck abandoned near the crime scene. Pharmaceuticals were missing. The driver of the truck sustained serious bodily injuries and was treated at a local hospital; he suffers from protracted impairment of the use of his hands.
On August 14, two ACE drivers were driving along 75th Avenue in Hyattsville, Maryland, to deliver a shipment of pharmaceuticals on behalf of ABC. Sampson and a co-conspirator suddenly blocked their path with a van. The co-conspirator leaped onto the running board of the passenger side of one of the trucks and attempted to force his way into the truck. The truck continued to travel down the street and the co-conspirator jumped off the truck. Sampson, who was wearing a hard hat, approached the driver’s side of the other truck, brandished a handgun, and attempted to get into the truck. Sampson was eventually thrown off the truck. Sampson’s DNA was found on a hard hat recovered from the scene. Sampson was treated for a wound at a hospital in Baltimore the next morning.
On August 31, an employee was moving a truck inside the TCC warehouse located in Hyattsville, when Sampson, who was wearing an orange construction vest, and two co-conspirators entered the warehouse. At least one of the three men produced a handgun and ordered the TCC driver out of the truck. The TCC driver complied and ran out of the facility. Sampson was later identified in security camera footage of the robbery.
A search warrant was executed in September of 2012 at Sampson’s residence, and law enforcement recovered some of the stolen pharmaceuticals, zip ties and an orange construction vest.
The total amount of loss from the robberies was between $250,000 and $400,000.
United States Attorney Rod J. Rosenstein commended the FDA – Office of Criminal Investigations; Richmond, Virginia and Washington, D.C. offices of the DEA; the Henrico County (Virginia) Police Division; and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Mara Zusman Greenberg, who prosecuted the case.
Texas Woman Pleads Guilty in Federal Adoption Fraud Case in KansasRead the Press Release
KANSAS CITY, KAN. – A Texas woman pleaded guilty Wednesday to defrauding four families that wanted to adopt children, U.S. Attorney Barry Grissom
Chrystal Marie Rippey, 34, Marshall, Texas, pleaded guilty to one count of wire fraud. In her plea, she admitted she devised a scheme in which she pretended to be pregnant. She contacted adoption agencies and individuals who wanted to adopt and said she was willing to give up her unborn children for adoption. She asked adoption agencies and individuals for money for rent, utilities, food and living expenses.
Couple No. 1: A Delaware couple moved Rippey into their home for a month. They took her on a two-week vacation on the beach and paid for her living expenses, new clothes, cell phone and food. She gave them a sonogram that she claimed showed her pregnancy with twins. In fact, she got the image from the Internet. Then she broke off contact with them.
Couple No. 2: A couple from Shawnee, Kan., put more than $22,000 in an escrow account to pay for Rippey’s living expenses. She told them false stories about her troubles with Child Protective Services and a fire that burned down the home of the birth father in order to get the couple to give her more money. Then she broke off contact with them.
Couple 3: Working with an adoption agency in Overland Park, Kan., Rippey contacted another couple that began providing support for her. They were shocked when they went to California to meet her and saw that she didn’t look pregnant.Couple 4: Another couple ran up expenses for fees to an adoption agency in Texas as well as travel expenses in hopes of adopting twins from Rippey. Rippey claimed she had a son in the hospital and that she had not eaten in days in order to get money from the couple. But the couple refused her request because the adoption agency told them not to give her any money until she completed adoption paperwork.
Sentencing will be set for a later date. Both parties have agreed to recommend a sentence of 33 months followed by three years supervised release.
Grissom commended the Overland Park Police Department, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Texas Man Pleads Guilty to Traveling to Missouri for Illicit Sex with Two ChildrenRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Texas man pleaded guilty in federal court today to traveling to Missouri to engage in sex with two minor sisters whose “father” (actually an undercover police detective) he met online.
John Paul Christian, 41, of San Marcos, Texas, pleaded guilty before U.S. District Judge Dean Whipple to two counts of attempting to entice a minor to engage in sexual activity and to one count of traveling across state lines to engage in illicit sexual conduct.
According to court documents, Christian communicated through an online social media site with a man he believed to be the father of two minor females, ages 11 and 15, on Feb. 19, 2014. The father was actually an undercover Kansas City, Mo., Police Department detective.
Christian called the undercover detective on his cell phone to discuss his interest in having sex with the girls, and sent e-mail and text messages to the undercover detective to arrange a meeting to further discuss this opportunity to have sex with his children. On Feb. 26, 2014, Christian sent a text to the undercover detective stating that he wanted to have sex with the 11-year-old girl first and describing all of the sex acts he desired to perform on and with her. On Feb. 28, 2014, Christian sent a $200 Money Gram to the undercover detective as partial payment of the $400 agreed price for sex with the girls.
On March 1, 2014, Christian traveled from Texas to Missouri, to a location where he believed the man and his daughters lived, with the intent to have sex with the girls as previously arranged. Christian arrived in a taxi at about 8:10 p.m. and was arrested as he got out of the taxi.
When he was taken into custody, Christian was in possession of two bags. According to court documents, one of the bags contained a “Hello Kitty” backpack doll, two “Hello Kitty” underwear outfits for young girls, two pairs of young girls’ panties, two cans of Red Bull, rope necklaces, Q-Tips and a teal iPod Nano with headphones. The other bag contained an Acer Chromebook laptop computer with power cables, a Samsung flip phone, and a bottle of Astroglide lubricant.
When officers searched Christian’s hotel room, according to court documents, they found a notebook with what appears to be a letter written to the 15-year-old daughter. The letter details the various sex acts that Christian was going to be engaged in with the sisters. Christian wrote that he wanted to get the 15-year-old girl pregnant so that they could have a “little baby girl together” that they in turn would sexually molest.
Under federal statutes, Christian is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, on each of the two enticement charges. Christian is also subject to a sentence of up to 30 years in federal prison without parole on the travel charge. 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 Catherine A. Connelly. It was investigated by the Kansas City, Mo., Police Department in conjunction with the Human Trafficking Rescue Project.
Tax Scheme Nets 32 Month Prison Sentence for Philadelphia ManRead the Press Release
PHILADELPHIA - Steven Young, 32, of Philadelphia, PA, was sentenced today to 32 months in prison for his role in a tax fraud conspiracy. Young pleaded guilty on May 13, 2014 to one count of conspiracy and six counts of aiding and assisting in the preparation of fraudulent federal income tax returns. Young was providing personal identifying information to his co-conspirators for use in creating and filing fraudulent income tax returns. Young was charged with Tanita Chapman who pleaded guilty to 23 counts of preparing and filing of false and fraudulent federal income tax returns, as well as conspiracy, and is awaiting sentencing. In addition to the prison term, U.S. District Court Judge J. Curtis Joyner ordered restitution to the IRS in the amount of $42,889, three years of supervised release and a $700 special assessment.
According to court documents, Young’s then-girlfriend, Wendy Vandyke, charged separately, was friends with Chapman. In 2009, Chapman prepared federal income tax returns for Vandyke and others. In many of these returns, although not in the one that she prepared for Vandyke, Chapman filed an accompanying form 5405 in which she unlawfully claimed the First Time Home Buyer’s Credit (“FTHBC”) for individuals whom she knew were not eligible to receive it. To this end, Vandyke provided to Chapman identifiers of individuals whom Vandyke and Chapman knew were ineligible to receive the FTHBC, in order for Chapman to prepare returns unlawfully claiming the FTHBC. Vandyke received these identifiers from Young who was incarcerated at the time at a State Correctional Institution. Young obtained these identifiers from inmates with whom he was incarcerated and, in exchange for their identifiers, Young arranged for each inmate to receive a portion of the FTHBC that was fraudulently claimed on that inmate’s behalf. However, the larger portions of the fraudulently received credits were split between Vandyke/Young (as a unit) and Chapman. Ultimately, as a result of the scheme, $42,889 in FTHBCs were fraudulently claimed in tax returns prepared by Chapman, ostensibly for six inmates. The government issued refunds for this same amount.
The case was investigated by Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Springfield Man Sentenced to 24 Years in Prison for Child ExploitationRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for the sexual exploitation of a minor.
Ezra Robert Gramm, 40, of Springfield, was sentenced by U.S. Chief District Judge Greg Kays to 24 years and five months in federal prison without parole, followed by lifetime supervised release. The court ordered the federal sentence to be served consecutively to a state sentence of 18 years for the attempted enticement of a child in Greene County, Mo.
Gramm, who pleaded guilty on May 13, 2013, admitted that he made contact with the 13-year-old victim, identified as “Jane Doe,” via an Internet chat room in late 2009. Gramm and the child victim engaged in online chat sessions and exchanged text messages with one another. During the course of this interaction, Gramm asked Jane Doe to take sexually explicit photographs of herself and transmit the photographs to him. Jane Doe complied with his request.
Gramm’s cell phone was seized by law enforcement officers and found to contain multiple images of Jane Doe engaged in sexually explicit conduct. Jane Doe was interviewed and acknowledged taking the digital images of herself and transmitting them to Gramm at his request.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Springfield Man Pleads Guilty to $6.7 Million K2 Distribution ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to a $6.7 million scheme that involved the distribution of approximately 2.2 kilograms of synthetic cannabinoids, commonly referred to as K2.
Brandon D. Franklin, 28, of Springfield, pleaded guilty before U.S. District Judge M. Douglas Harpool to conspiracy to commit mail fraud and to conspiracy to commit money laundering.
Franklin admitted that he engaged in a mail fraud scheme by selling and shipping (via FedEx) Kryp2nite products, which were falsely labeled as “incense” and “not for human consumption,” but in reality are intended for human consumption as a drug. He manufactured and distributed K2 to retail outlets in Springfield, Joplin and elsewhere through his Springfield business, ThirdEye.
Between Oct. 29, 2009, and Nov. 6, 2012, Franklin deposited $6,760,041 in proceeds from the distribution of synthetic cannabinoids into his bank accounts. Based upon a review of invoices seized during the investigation, Franklin charged approximately $3 per gram of synthetic cannabinoid. Therefore, Franklin distributed approximately 2,253 kilograms of synthetic cannabinoids.
Franklin also admitted to his role in a money laundering conspiracy related to conducting financial transactions involving the proceeds of unlawful activity, which were designed to conceal or disguise the nature, location, source, ownership and control of the proceeds.
Franklin must forfeit to the government any property derived from the proceeds of the offenses, including a money judgment of $6,760,041; real estate in Springfield, Mo., Rogersville, Mo., Springfield, Ore., and Redding, Calif.; the funds contained in several bank accounts totaling more than $535,000; and investment funds totaling $267,632.
Under federal statutes, Franklin is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Today’s conviction is the result of a large-scale investigation by local, state and federal law enforcement agencies into the distribution of K2, the slang term for synthetic cannabinoid products. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, the FDA Office of Criminal Investigations, IRS-Criminal Investigation, the Jasper County Drug Task Force, the Jasper County, Mo., Sheriff’s Department, the Joplin, Mo., Police Department, the Webb City, Mo., Police Department, the South Central Drug Task Force, the Missouri State Highway Patrol, the Springfield, Mo., Police Department, the Newton County, Mo., Sheriff’s Department and the Greene County, Mo., Prosecuting Attorney’s Office.Soldier at Ft. Riley Sentenced for False Statements to Social Security AdministrationRead the Press Release
KANSAS CITY, KAN. – A soldier at Ft. Riley was sentenced Wednesday for making false material statements to the Social Security Administration, U.S. Attorney Barry Grissom said.
James Scott Nickerson, 38, Ft. Riley, Kan., was sentenced to six months in prison followed by six months home confinement and three years of supervised release. He also was ordered to pay $71,734 in restitution to the SSA and an additional $250 to the United States Treasury for a stimulus payment he was not entitled to receive.
Nickerson pleaded guilty to one count of making a false official statement to a federal agency. In his plea, he admitted he was paid a total of $71,734 in disability benefits by the Social Security Administration that he was not eligible to receive. Beginning in October 2009, Nickerson applied for disability benefits under the Wounded Warrior Program. He claimed he was unable to work because of “organic mental disorders” he developed while serving a deployment in Iraq.
While receiving disability benefits, he worked full time for the Army doing various duties, including serving as a platoon sergeant while he claimed to be disabled. He also supervised other soldiers during this period. Nickerson attempted to conceal his actual work activity from SSA by claiming he worked no more than 20 hours a week. On three separate occasions, the defendant completed Work Activity Reports, documents used by SSA to determine if a beneficiary is eligible for disability benefits. On each of these occasions he was asked to identify his supervisors so that SSA could verify his work activity. On all three occasions, he identified persons other than his supervisors. In the plea agreement, the defendant admitted that on a Work Activity Report he completed on Sept. 6, 2010, he falsely reported to SSA that one of his subordinates was his supervisor. He admitted that this was a false material statement to a federal agency.Grissom commended the Office of the Inspector General for the Social Security Administration and Special Assistant U.S. Attorney Trey Alford for their work on the case.
- Six Area Residents Arrested in Straw Purchasing Scheme
Shiprock Man Sentenced to Eight Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Gilbert Yazzie, 45, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to eight years in federal prison followed by 15 years of supervised release for his aggravated child sexual abuse conviction. Yazzie will be required to register as a sex offender after he completes his prison sentence.
Yazzie was arrested in June 2013, on a criminal complaint alleging that he engaged in a sexual act with a Navajo child under the age of 12 years. According to court filings, Yazzie sexually abused the child victim on June 15, 2013, in a residence in Shiprock, which is within the Navajo Indian Reservation. On June 19, 2014, Yazzie pled guilty to a felony information charging him with sexually abusing a child and admitted that on June 15, 2013, he engaged in a sexual act with the child victim.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and Glynette R. Carson McNabb.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Second Colombian National Pleads Guilty to Kidnapping and Murder 0f DEA Agent Terry WatsonRead the Press Release
WASHINGTON – A second Colombian man extradited to the Eastern District of Virginia pleaded guilty today for his involvement in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson in Bogotà, Colombia, on June 20, 2013.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“Throughout his law enforcement career, Special Agent Watson’s service was both selfless and courageous,” said Attorney General Holder. “With this action, we continue our work to hold accountable those who were responsible for his murder. In the weeks ahead, we expect to take additional steps to bring the perpetrators to justice. And in all that we do, our nation's Department of Justice will continue to honor Special Agent Watson’s sacrifice, to safeguard the nation he served, and to protect the values and principles he defended all his life.”
“DEA will never forget the sacrifice of Special Agent Terry Watson, nor will we rest until those responsible for his kidnapping and murder are brought to justice for this horrific act,” said DEA Administrator Leonhart. “While this is certainly not the final step, we are pleased that another criminal facilitator in this awful tragedy is answering for his actions in a U.S. courtroom.”
Andrés Álvaro Oviedo García, 22, pleaded guilty before U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing is scheduled for Dec. 12, 2014.
In a statement of facts filed with the plea agreement, Oviedo García admitted that he and his conspirators agreed to conduct a “paseo milionario” or “millionaire’s ride” in which victims who were perceived as wealthy were lured into taxi cabs, kidnapped and then robbed. Oviedo García admitted that he was part of the group of individuals that targeted Special Agent Watson, but his taxi encountered mechanical issues. Oviedo García remained with the disabled taxi while the other conspirators continued with the group’s plan to conduct the “millionaire’s ride” robberies. Shortly thereafter, Special Agent Watson was targeted and picked up in a taxi outside a restaurant in Bogotà. Soon after, two conspirators entered the taxi carrying Special Agent Watson, and one used a stun gun to shock Special Agent Watson and the other stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.
Six other defendants were charged in this case for their alleged involvement in the murder of Special Agent Watson. Gerardo Figueroa Sepúlveda, 39; Omar Fabiàn Valdes Gualtero, 27; Édgar Javier Bello Murillo, 27; and Héctor Leonardo López, 34, are each charged by indictment with second degree murder, kidnapping and conspiracy to kidnap. Wilson Daniel Peralta Bocachica, 31, was charged for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.
On Sept. 3, 2014, Julio Estiven Gracia Ramírez, 31, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing for Gracia Ramírez is scheduled for Dec. 5, 2014. Trial for the remaining defendants is set for Jan. 12, 2015.
The charges in the indictment against the other defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
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Saxtons River Teacher Sentenced to Prison for Child Exploitation OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Brant Nelson, 49, of Saxtons River, Vermont, was sentenced on September 15, 2014, in United States District Court in Burlington, Vermont, to serve 360-months (30 years) imprisonment and a lifetime period of supervised release following his conviction on six counts of production of child pornography, in violation of 18 U.S.C. § 2251, one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B), one count of interstate travel to engage in sexual act with a minor, in violation of 18 U.S.C. § 2241(c), and one count of interstate transportation of a minor for sexual activity, in violation of 18 U.S.C. § 2423(a). Chief Judge Christina Reiss also ordered Nelson to pay a $900 special assessment.
According to court records and proceedings, in early January 2012, Nelson was living in Saxtons River, Vermont when the Vermont State Police (VSP) received a report that he possibly had images of child pornography on his computer and that he had a sexual interest in very young girls. VSP troopers interviewed Nelson, who confirmed that he had child pornography on his computer at his residence. Nelson added that he encrypted the computer, but he gave the troopers consent to take his computer and various passwords to defeat the encryption. The troopers retrieved Nelson=s computer and delivered it to a forensic examiner with the Vermont Internet Crimes against Children (ICAC) Task Force. The troopers gave Nelson a citation to appear in court at a later date.
Within days thereafter, Nelson went to a public computer and caused email accounts he had used to be closed and the contents deleted. Nelson also warned other offenders with whom he had been sharing images of child pornography to destroy their computers.
Nelson was interviewed by a VSP detective and a Special Agent with the Department of Homeland Security, Homeland Security Investigations (HSI), on January 20, 2012. Nelson admitted to having child pornography on his computer, to engaging in sexual contact with a young girl, to taking pornographic pictures of his child victims and posting them to the Internet, to sharing with other pedophiles images of child pornography that he had produced, and to accessing a website on the Internet where pedophiles congregate. Nelson’s admissions were confirmed by the forensic exam of his computer, where images of child pornography that he produced and possessed were found. Nelson was taken into federal custody. On February 2, 2012, he was indicted on one count of production of child pornography. The production of child pornography count carries a 15-year mandatory minimum sentence, with a 30-year statutory maximum sentence.
Through an unrelated investigation conducted by the FBI in New York State, images of child pornography that depicted Nelson and his child victims were found in the collection of another offender. On April 12, 2012, a grand jury returned a First Superseding Indictment against Nelson, which charged him with a total of six counts of production of child pornography, and one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B).
On June 17, 2013, Nelson pleaded guilty to all counts of the First Superseding Indictment.
The investigation into Nelson’s activities continued and resulted in his guilty plea to a two-count Information on March 24, 2014. The Information charged him with interstate travel to engage in a sexual act with a minor (Count One), and one count of interstate transportation of a minor for sexual activity (Count Two). Count One subjected Nelson to a 30-year mandatory minimum sentence, with a statutory maximum sentence of life. Count Two subjected Nelson to a 10-year mandatory minimum sentence, with a statutory maximum sentence of life. The facts which supported Nelson’s guilty plea to the two charges in the Information are the following:
In approximately 2008, Nelson began accessing a website on the Internet where adults who have a sexual interest in little girls congregate. While using this website, Nelson met and began communicating with a man who lived in the state of New York (“Offender #1”). Nelson and Offender #1 communicated via email about their shared sexual interest in little girls and their shared interest in child pornography. Nelson also traveled to New York to visit Offender #1. In approximately March 2010, Nelson took Minor A and Minor B to New York City so they could meet Offender #1. At the time of this trip, Nelson was, had been, and would continue to engage in regular sexual activity with both Minor A and Minor B. Nelson knew that Minor A and Minor B were both under the age of 12 years old in 2010.
In approximately July 2010, Nelson took Minor A and Minor B from Vermont to New York City to see Offender #1 again. While traveling to New York City, Nelson told Minor A that Offender #1 wanted to have sexual contact with Minor A. While in New York City, Offender #1 engaged in sexual activity with Minor A, and Nelson engaged in sexual activity with Minor B.
In approximately November 2010, Nelson took Minor A and Minor B from Vermont to New York City, New York to see Offender #1 again. Prior to the trip, Nelson discussed with Minor A and Minor B that Offender #1 wanted to engage in sexual activity with both of them. Nelson also intended to engage in sexual activity with Minor A and/or Minor B during this trip. Nelson and Offender #1 both engaged in sexual activity with Minor A and Minor B while in New York City.
In sentencing Nelson, Judge Reiss rejected the government’s request that he receive a lifetime term of imprisonment, called for under the advisory federal sentencing guidelines, and sentenced him instead to 30-years imprisonment, the statutory mandatory minimum sentence. At the sentencing hearing, Judge Reiss said that Nelson’s criminal conduct was the worst she had ever seen in her years as a state and federal judge.United States Attorney Coffin said: “Nelson’s conduct was horrific and among the worst ever prosecuted by this Office. We are grateful for the tremendous investigative support provided to us by the Vermont State Police, the Department of Homeland Security, Homeland Security Investigations, the Federal Bureau of Investigation, and the Vermont Internet Crimes against Children Task. The protection of children is a priority of this Office and we will prosecute offenders such as Nelson to the fullest extent of the law.”
HSI Special Agent in Charge Bruce Foucart said: “Child sexual exploitation crimes are appalling and made even more disturbing when they are carried out by individuals in positions of trust who have ready access to innocent children. The aggressive investigation and ultimate prosecution of those engaged in this type of depraved activity remains among our highest priorities at HSI.”
The prosecution of Nelson was handled by Assistant U.S. Attorney Barbara A. Masterson. Nelson was represented by Assistant Federal Public Defender David L. McColgin.
U.S. Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sallisaw Man Charged with Multiple Counts of Wire Fraud, Identity Theft and CounterfeitingRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CHRISTOPHER JACOB FROEHLICH, age 28, of Sallisaw, Oklahoma was arraigned in federal court today.
The defendant has been charged with six counts of Wire Fraud, in violation of Title 18, United States Code, Section 1343, punishable by up to 20 years imprisonment and/or up to a $250,000.00 fine; six counts of Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A(a)(1), punishable by 2 years imprisonment consecutive to any other sentence imposed and/or up to a $250,000.00 fine; and two counts of Uttering A Counterfeit Security With Intent To Deceive, in violation of Title 18, United States Code, Section 513(a), punishable by up to 10 years imprisonment and/or up to a $250,000.00 fine.
The Indictment filed on September 10, 2014, alleges that from December 25, 2013 to March 30, 2014 the defendant devised and intended to devise a scheme to defraud various individuals and financial institutions. The defendant used fraudulently obtained personal identification information to create false online accounts at financial institutions. The defendant also uttered counterfeit checks for mobile deposit intending to defraud.
The charges arose from an investigation by the United States Postal Service and the United States Secret Service.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant was remanded into the custody of the United States Marshal Service.
Assistant United States Attorney Chris Wilson represented the United States.
Ranson Resident Indicted on Crack Cocaine ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFederal Grand Jury also returns two additional indictments
MARTINSBURG, WV – United States Attorney William J. Ihlenfeld, II, announced that an investigation by the Eastern Panhandle Drug and Violent Crime Task Force has led to a federal indictment being returned.
Armistead William CRAIG a/k/a “Armstead William Craig,” a/k/a “Manny,” a/k/a “MANNY MOO,” 35, of Ranson, West Virginia, was named in a one-count Indictment charging him with “Distribution of Crack Cocaine.” CRAIG, who is currently in federal custody serving a revocation of his supervised release, faces up to 20 years in prison on this charge. This case will be prosecuted by Assistant U.S. Attorney Jarod J. Douglas.
In two separate cases:
Victor HERRERA, 48, an inmate at USP Hazelton, was named in a two-count Indictment charging him with “Conspiracy to Commit Assault with a Dangerous Weapon with Intent to do Bodily Harm” and “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” HERRERA faces up to five years in prison on the conspiracy charge and ten years in prison on the assault charge. This case was investigated by the Special Investigative Services Unit at USP Hazelton.
Julio Ruiz-De Los SANTOS, 26, of Morgantown, West Virginia, was named in a one-count Indictment charging him with “Re-Entry of Removed Alien.” The Indictment alleges that SANTOS was found in the United States after having previously been deported and had not obtained the consent of the Attorney General for admission into the United States. SANTOS faces up to two years in prison. This case was investigated by US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).
The HERRERA and SANTOS cases will be prosecuted by Assistant U.S. Attorney Shawn A. Morgan.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.