Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 28 July 2014
New Town Man Sentenced for AssaultRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on July 28, 2014, Christopher McMillan, 29, New Town, N.D., was sentenced by U. S. District Judge Daniel L. Hovland to serve two years and six months in prison on the charge of assault of a dating partner resulting in substantial bodily injury. McMillan pleaded guilty to the charge on April 21, 2014.
On Dec. 9, 2013, McMillan assaulted a female, whom he was dating, resulting in substantial bodily injury to the face and neck of the victim.
Judge Hovland also ordered McMillan to complete two years of supervised release and to pay a $100 special assessment to the Crime Victim’s Fund.
The charge in this case, assault of a dating partner resulting in substantial bodily injury in Indian Country, was created by Congress as part of the Violence Against Women Reauthorization Act of 2013.
The case was investigated by Bureau of Indian Affairs – Fort Berthold Agency and Three Affiliated Tribes Police Department.
This case was prosecuted by Assistant U. S. Attorney Rick Volk.
Mexican National Pleads Guilty to Federal Methamphetamine and Cocaine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Miguel Angel Tinajero-Martinez, 24, a Mexican national illegally in the United States, pleaded guilty on July 24, 2014, to methamphetamine trafficking charges in federal court in Las Cruces, N.M.
Tinajero-Martinez was indicted on Feb. 19, 2014, under the moniker “4 Runner” and was charged with conspiracy and distribution of methamphetamine. He was arrested on Feb. 27, 2014, and has been in federal custody since that time.
On July 24, 2014, Tinajero-Martinez entered a guilty plea to a four-count felony information charging him with (1) conspiracy; (2) distribution of methamphetamine in Doña Ana County, N.M., on Jan. 27, 2014; (3) distribution of methamphetamine in Doña Ana County, N.M., on Feb. 27, 2014; and (4) possession of cocaine with intent to distribute in El Paso County, Texas, on Feb. 27, 2014.
In entering his guilty plea, Tinajero-Martinez admitted that from Dec. 2, 2013 to Feb. 27, 2014, he conspired with others to distribute an aggregate of three kilograms of methamphetamine in Doña Ana County. More specifically, Tinajero-Martinez admitted distributing one kilogram of methamphetamine to an undercover agent on Jan. 27, 2014 and distributing two kilograms of methamphetamine to undercover agents on Feb. 27, 2014. The drug transactions were negotiated by Tinajero-Martinez’s co-conspirators and Tinajero-Martinez delivered the methamphetamine to the agents.
During his plea hearing, Tinajero-Martinez also admitted possessing seven kilograms of cocaine at his home in Horizon, Texas. Tinajero-Martinez waived venue to permit him to enter his guilty plea in federal court in New Mexico.
At sentencing, Tinajero-Martinez faces a prison sentence of not less than ten years and nor more than life. He will be deported after he completes his prison sentence.
This case was investigated by the Las Cruces office of the FBI and Las Cruces/Doña Ana County Metro Narcotics Agency, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Man Sentenced to 180 Months in Federal Prison for His Role in Drug ConspiracyRead the Press Release
BOISE – Hernan Gomez-Gutierrez, 31, a Mexican National, was sentenced today to 180 months in prison for conspiring to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Gomez-Gutierrez to serve five years of supervised release. Gomez-Gutierrez pleaded guilty to the charge on January 14, 2014.
Gomez-Gutierrez was one of eleven individuals charged with conspiracy to distribute methamphetamine. According to information presented in court, Gomez-Gutierrez was the leader of the organization and the source of the methamphetamine. Gomez-Gutierrez provided the methamphetamine to other co-defendants who distributed the drugs. Gomez-Gutierrez was also present when co-defendant Jeramie Mahler shot another person on March 25, 2013, in furtherance of the drug conspiracy, because of a dispute with that person about the quality of the methamphetamine. The shooting occurred alongside a road in south Ada County near Amity and Linder roads. Gomez-Gutierrez and Mahler fled the scene leaving the injured man behind. Approximately a week later on April 2, 2013, a Canyon County Sheriff’s deputy stopped a vehicle that Mahler was driving. The deputies arrested Mahler and searched the vehicle, which was registered to Gomez-Gutierrez. Deputies found approximately one-quarter pound of methamphetamine and two handguns and in the vehicle, including the handgun used in the shooting. Gomez-Gutierrez was also arrested after he arrived at the location of the traffic stop driving a different vehicle. Deputies searched the vehicle Gomez-Gutierrez was driving and located a .45 semi-automatic pistol.
Gomez-Gutierrez and the other ten defendants were indicted on July 9, 2013, in a case including charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, distribution of 2 cocaine, and unlawful possession of firearms. All eleven defendants pleaded guilty. Co-defendants Wendy Harrison and Bobbi Woolsey were both sentenced to 84 months in prison; Nearia Pinnell was sentenced to 33 months in prison; Daniel Vaughan was sentenced to 80 months in prison; Darrell Zirschky was sentenced to 168 months in prison; Michelle Ritch was sentenced to 120 months in prison; Carlos Tovar was sentenced to 87 months in prison; Juan Mojica-Barragan was sentenced to 57 months in prison; and Jeramie Mahler was sentenced to 247 months in prison. Scott Hernandez has not been sentenced yet.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. Other agencies that contributed to this investigation include the Drug Enforcement Administration, Nampa Police Department, Caldwell Police Department, Canyon County Sheriff’s Office, and Ada County Sheriff’s Office. During the investigation, law enforcement agents seized twelve firearms, including a stolen firearm, and an illegal fully-automatic machine gun.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Local In-Home Healthcare Provider Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – TINA KUEHL was sentenced to 51 months in prison on multiple healthcare fraud charges and separate unrelated bank fraud charges and ordered to pay $200,000 restitution. Her company, Better Way Home Care, was sentenced to three years of probation and also ordered to pay $200,000 restitution. Kuehl and Better Way represented on billing work sheets and claim forms that patients had received therapy services when they knew that the patients had not received the therapy. Kuehl and Better Way caused the submission of hundreds of reimbursement claims to Medicare for services which they knew had not been provided.
According to court documents regarding the bank fraud charges, in December 2010, Kuehl’s mother obtained a $305,000 property loan from the Community Bank of Owensville, MO, a branch of the Maries County Bank. Both Kuehl and her mother are listed on the deed of trust for the property. On many occasions, they did not make timely payments on the loan, and in July 2013, Maries Bank foreclosed on the property. After the foreclosure, Kuehl devised a scheme to defraud Maries Bank by submitting fraudulent checks as proof that she had made loan payments to the bank. On six occasions, she changed the payee on copies of unrelated cancelled checks so that it would appear that she had made loan payments to Community Bank of Owensville. She continued the fraud by claiming to have made cash payments to a bank employee on two occasions. The bank employee was on sick leave on the day Kuehl claimed she made the first $4,000 cash payment to the employee at the bank. Kuehl claimed that she made a second cash payment of $6,900 to a bank employee at a truck stop. Finally, Kuehl retained attorneys to represent her after the foreclosure, and falsely told them she had made payments by checks and cash, which the bank had not credited to her loan account.According to court documents regarding the healthcare fraud charges, Better Way was a home health care agency located in Ellisville, Missouri. Tina Kuehl was the owner, president, and administrator of Better Way and was responsible for the day-to-day operations. Medicare pays home health agencies for 60-day episodes of care. Medicare makes two payments to the home health care agencies, the first before the service is provided based on the patient’s anticipated need for services and a second payment at the end of the 60-day episode of care based on the actual number of services provided.
Kuehl has no medical or health care education, training or experience, which would qualify her to assess or evaluate patients or determine their care needs. Prior to opening Better Way, she worked in the cosmetology field. Better Way hired nurses and contracted with therapists to assess and evaluate patients and to determine the patients’ needs for therapy services. Better Way staff recorded this information on the Outcome and Assessment Information Set form (OASIS).To increase the reimbursement that Better Way would receive, Kuehl directed Better Way nurses and other employees to make false statements on the OASIS forms and the reimbursement claim forms. At Kuehl’s direction, the staff increased the number of therapy visits, although Kuehl knew the patients did not need and had not received the therapy; falsified the diagnosis codes; and exaggerated the patients’ conditions and the reasons the patients were receiving home health care services from Better Way. When some employees refused to increase the number of therapy visits, Kuehl personally increased the number of visits. In some instances the patient had received no therapy at all.
Kuehl, Ballwin, MO, pled guilty May 1st to one felony count of bank fraud, one felony count of healthcare fraud, two counts of making false statements relating to healthcare and one count of making false statements to federal agents. She appeared today for sentencing before United States District Judge Henry Autrey.This case was investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the FBI. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney's Office.
Lloyds Banking Group Admits Wrongdoing in LIBOR Investigation, Agrees to Pay $86 Million Criminal PenaltyRead the Press Release
Lloyds Banking Group plc has entered into an agreement with the Department of Justice to pay an $86 million penalty for manipulation of submissions for the London InterBank Offered Rate (LIBOR), a leading global benchmark interest rate.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Antitrust Division, and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
A criminal information will be filed today in U.S. District Court for the District of Connecticut that charges Lloyds as part of a deferred prosecution agreement (DPA). The information charges Lloyds with wire fraud for its role in manipulating LIBOR. In addition to the $86 million penalty, the DPA requires the bank to admit and accept responsibility for its misconduct as described in an extensive statement of facts. Lloyds has agreed to continue cooperating with the Justice Department in its ongoing investigation of the manipulation of benchmark interest rates by other financial institutions and individuals.
“For more than three years, traders at Lloyds manipulated the bank’s LIBOR submissions for three currencies to benefit the trading positions of themselves and their friends, to the detriment of the parties on the other side of the trades,” said Assistant Attorney General Caldwell. “Because investors and consumers rely on LIBOR’s integrity, rate-rigging fundamentally undermines confidence in financial markets. Lloyds is the fifth major financial institution that has admitted LIBOR manipulation and paid a criminal penalty, and nine individuals have been criminally charged by the Justice Department. Our active investigation continues, as we work to restore trust in the markets.”
“Lloyds manipulated benchmark rates, allowing its traders to increase their profits unfairly and fraudulently,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Lloyds’s conduct undermined financial markets domestically and abroad, and today’s charges send a clear message that we will continue to bring those responsible to justice."
“Manipulating financial trading markets to create an unfair advantage is against the law,” said Assistant Director in Charge Parlave. “Today’s agreement further underscores the FBI’s ability to investigate complex international financial crimes and bring the perpetrators to justice. The Washington Field Office has committed significant time and resources including the expertise of Special Agents, forensic accountants and analysts to investigate this case along with our Department of Justice colleagues. Their efforts send a clear message to anyone contemplating financial crimes: think twice or you will face the consequences.”
Together with approximately $283 million in criminal and regulatory penalties imposed by other agencies in actions arising out of the same conduct – $105 million by the Commodity Futures Trading Commission (CFTC), and approximately $178 million by the U.K. Financial Conduct Authority (FCA) – the Justice Department’s $86 million criminal penalty brings the total amount to be paid by Lloyds to almost $370 million.
According to signed documents, LIBOR is an average interest rate, calculated based upon submissions from leading banks around the world and reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.
At the time relevant to the conduct in the criminal information, LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London. LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The LIBOR for a given currency at a specific maturity was the result of a calculation based upon submissions from a panel of banks for that currency (the Contributor Panel) selected by the BBA. From at least 2006 through the present, Lloyds (through its subsidiaries) has been a member of the Contributor Panel for a number of currencies, including United States Dollar LIBOR, Pound Sterling LIBOR, and Yen LIBOR.
According to the statement of facts accompanying the agreement, between at least as early as 2006 and at least as late as July 2009, Lloyds’s LIBOR submitters for Dollar LIBOR, Yen LIBOR, and Pound Sterling LIBOR submitted LIBOR contributions intended to benefit their own trading positions or the trading positions of others , rather than rates that complied with the definition of LIBOR. When Lloyds LIBOR submitters contributed LIBOR submissions to benefit trading positions, the manipulation of the submissions affected the fixed rates on occasion.
According to signed documents, on May 19, 2009, a money markets trader who was a former Dollar LIBOR submitter at a subsidiary of Lloyds wrote to the then-current Dollar LIBOR submitter: “have 5 yard [billion] 3 month liability rolls today so would be advantageous to have lower 3month libor setting if doesn’t conflict with any of your fix’s.” Later that day, the Dollar LIBOR submitter told the money markets trader in a phone call: “obviously we got the Libors down for you.”
In another example, on March 6, 2009, a money markets trader who was a former Pound Sterling LIBOR submitter for a subsidiary of Lloyds told the then-current Pound Sterling LIBOR submitter: “Um, I’m paying on 12 yards [billions] of 1s today, . . . so if there is any way of making 1s relatively low it would just be helpful for us all.” That day, the Pound Sterling LIBOR submitter contributed a rate that was ten basis points lower than the previous day’s submission.
Also according to the statement of facts, a Yen LIBOR submitter and a former submitter at Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) who traded money-markets and derivatives products had an agreement to submit Yen LIBOR contributions that benefitted their respective trading positions, rather than submissions that complied with the definition of LIBOR.
For example, on July 28, 2006, the Rabobank submitter wrote to the Yen LIBOR submitter: “morning skipper.....will be setting an obscenely high 1m again today...poss 38 just fyi.” The Yen LIBOR submitter responded: “(K)...oh dear..my poor customers....hehehe!! manual input libors again today then!!!!” Both banks’ submissions on July 28 moved up one basis point, from 0.37 to 0.38.
This ongoing investigation is being conducted by special agents, forensic accountants, and intelligence analysts of the FBI’s Washington Field Office. The prosecution of Lloyds is being handled by Trial Attorney Patrick Pericak of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antitrust Division. Assistant U.S. Attorneys Chris Mattei and Michael McGarry of the U.S. Attorney’s Office for the District of Connecticut, along with the Criminal Division’s Office of International Affairs, have provided valuable assistance in this matter.
The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the CFTC’s Division of Enforcement referred this matter to the department and, along with the FCA, has played a major role in the investigation. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance. In particular, the Securities and Exchange Commission has played a significant role in the LIBOR investigation, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.govLittle Eagle Man Acquitted of Assault with A Dangerous Weapon and Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man was acquitted on July 23, 2014, on one count of Assault with a Dangerous Weapon and one count of Domestic Assault by a Habitual Offender as a result of a federal jury trial in Pierre, South Dakota.
Leon White was indicted by a federal grand jury on February 12, 2014.
The charges stemmed from events that were alleged to have occurred in December 2013.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. The U.S. Attorney's Office prosecuted the case.
Leader of Colombian Drug Trafficking Organization Sentenced to 18 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore sentenced Vinston Boxton-Moises (49, San Andres Island, Colombia, South America) to 18 years in federal prison for conspiring with others to distribute five kilograms or more of cocaine, knowing and intending that the cocaine would be unlawfully imported into the United States. Boxton was arrested on San Andres Island, Colombia in August 2013. He was subsequently extradited to the United States for prosecution. Boxton pleaded guilty on May 6, 2014.
According to court documents, between 2010 and 2013 Boxton was a knowing and willing participant in an ongoing plan to smuggle cocaine by sea. The cocaine was ultimately destined for unlawful importation into the United States. Boxton’s roles in the conspiracy included recruiting and paying mariners and mechanics, contracting for the use of smuggling and lookout/logistics vessels, and dispatching cocaine-laden go-fast vessels (GFVs).
Boxton is accountable for the GFV TAUPLY, interdicted by the United States in the Caribbean Sea on May 31, 2012, on the high seas and in international waters, approximately 85 nautical miles southeast of Nicaragua. The TAUPLY interdiction resulted in the seizure of approximately 1,000 kilograms of cocaine. Boxton arranged for the recruitment and payment of the mariners who ultimately operated TAUPLY and attempted to smuggle the cocaine. The Government of Colombia consented to the enforcement of United States law by the United States over the TAUPLY, its illicit cargo (cocaine), and crew. The five mariners who smuggled the cocaine on board the TAUPLY were successfully prosecuted in the United States for violations of the Maritime Drug Law Enforcement Act.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, comprised of agents and analysts from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, the Federal Bureau of Investigation, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South.
The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Kern County Resident Pleads Guilty in Fraudulent Tax Refund SchemeRead the Press Release
FRESNO, Calif. — Federico Garcia Garcia, 45, of Arvin, pleaded guilty today to two counts of filing false claims with the U.S. Internal Revenue Service in connection with a scheme to obtain tax refunds, United States Attorney Benjamin B. Wagner announced.
According to his plea agreement, between October 2007 and December 2008, Garcia caused 147 false federal income tax returns to be submitted to the IRS in the names of third parties, in a scheme to obtain tax refund checks. The tax returns were submitted to the IRS with fabricated Form W-2s containing false wage and withholding information. Due to the scheme, approximately $308,317 was fraudulently claimed in federal tax refunds, and the IRS paid out approximately $79,932.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Kirk Sherriff is prosecuting the case.
Garcia is scheduled to be sentenced on November 24, 2014, by United States District Judge Anthony W. Ishii. Garcia faces a maximum statutory penalty of five years in prison and a $250,000 fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Kalamazoo Couple Sentenced to Prison for Tax CrimesRead the Press Release
GRAND RAPIDS, MICHIGAN – Helen C. Hale and her husband, David W. Leiter, both residents of Kalamazoo County, Michigan, were sentenced for tax crimes today by U.S. District Court Judge Judge Robert J. Jonker. U.S. Attorney Patrick Miles is joined in this announcement by Jarod Koopman, Special Agent in Charge- IRS Criminal Investigation.
Helen Hale was sentenced to 12 months and one day in prison followed by two years of supervised release for tax evasion. She was also ordered to pay $277,391.31 in restitution to the Internal Revenue Service. David Leiter was sentenced to three months in prison followed by one year of supervised release for failure to file a tax return. He was ordered to pay $105,689 in restitution to the Internal Revenue Service.
According to court records, Hale was self-employed as the owner of Kiddie Komfort Preschool and Daycare in Kalamazoo, Michigan. Hale failed to timely file Federal income tax returns for the years 2006 and 2008- 2012, despite having gross business receipts of $2,693,478. Hale did file a Federal income tax return for 2007 but failed to report approximately $380,165 in gross receipts that she received from her daycare business. In December 2013, Hale pled guilty to one count of income tax evasion.
According to court records, Leiter was self-employed as the owner of David Michael Studios, a hair salon in Kalamazoo, Michigan. Leiter failed to file Federal income tax returns for tax years 2009 through 2012, despite having gross business receipts of approximately $200,736. In December 2013, Leiter pled guilty to one count of failing to file an income tax return.
“Tax evasion is not a victimless crime,” said Special Agent in Charge (SAC) Jarod Koopman, IRS Criminal Investigation. “Individuals who corruptly violate the law to further their business interests and intentionally evade paying their fair share of taxes undermine public confidence in our tax system and unfairly disadvantage businesses that play by the rules. As Hale and Leiter have discovered, operating outside the law and failing to pay taxes has severe consequences.”
The IRS investigated the case. Assistant U.S. Attorney Rene Shekmer prosecuted it.
END
Jonathan Thornton Sentenced to 121 Months for Distribution of Crack Cocaine and Possession of A Firearm by A Convicted FelonRead the Press Release
GREENEVILLE, Tenn. – On July 28, 2014, Jonathan Thornton, 32, of Dandridge, Tenn., was sentenced to serve 121 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Thornton will be subject to supervised release under the supervision of the U.S. Probation Office for three years. There is no parole in the federal system.
Thornton pleaded guilty in February 2014 to distributing a quantity of crack cocaine and to being a convicted felon in possession of a firearm. During an undercover investigation, Thornton, along with co-defendant Roger France, sold firearms which had been stolen earlier that day in a burglary in Cosby, Tenn. At the time that he sold the stolen firearms, Thornton was a convicted felon. On another occasion, he also traded a firearm for prescription drugs and distributed crack cocaine.
Law enforcement agencies participating in the joint investigation included the Fourth Judicial District Drug Task Force, Tennessee Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Cocke County Sheriff’s Department. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Iraq Extradites Fugitive Defense Contractor to U.S. to Face Fraud ChargesRead the Press Release
A Las Vegas-based former Department of Defense contractor has been extradited from Iraq to the United States to face fraud and conspiracy charges for attempting to bribe U.S. officials in order to secure government contracts for his companies. Metin Atilan, 54, is the first person extradited from Iraq to the United States pursuant to the U.S.-Iraq extradition treaty signed on June 7, 1934 and entered into force in 1936.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Kevin Cornelius of the FBI’s Cincinnati Office and Resident Agent in Charge Bret Flinn of the Defense Criminal Investigation Service (DCIS) made the announcement.
“This historic extradition from Iraq to the United States is an example of our cooperation with law enforcement worldwide to bring fugitives to justice,” said Assistant Attorney General Caldwell. “Atilan’s return to the United States, after more than six years on the run, sends a clear message to fugitives: no matter where in the world you try to hide, we will find you, and we will prosecute you.”
“ This case is a tremendous example of a successfully organized and cooperative law enforcement effort put forth by the FBI, DCIS, Interpol and the Iraqi government,” said Special Agent in Charge Cornelius. “I commend the work of the FBI’s Legal Attaché Office and the U.S. Embassy Country Team in Iraq. They have garnered a superior level of law enforcement cooperation between the FBI and Iraqi officials. Without their support, this extradition would not have been possible.”
Atilan, a dual U.S. and Turkish citizen, is scheduled to appear today before U.S. Magistrate Judge Michael R. Merz of the Southern District of Ohio.
Atilan was charged by indictment on June 10, 2008, with conspiracy to engage in contract fraud, conspiracy to engage in wire fraud, and wire fraud. According to court documents, Atilan is p resident and chief executive officer of PMA Services Ltd. of Las Vegas and Kayteks Ltd. of Adna, Turkey. In 2006 through 2008, Atilan offered bribes and kickbacks in order to secure contracts for businesses he owned in connection with services and construction associated with U.S. military operations in Iraq. Some of the Defense Department contracting officials who Atilan is accused of trying to bribe were stationed in Dayton at the time.
Atilan was first arrested in Las Vegas on May 23, 2008. Atilan was placed on electronic monitoring pending his formal hearing before a federal judge in Dayton, Ohio. On June 15, 2008, Atilan allegedly violated the terms of his pretrial release by cutting off his electronic bracelet and fleeing the country. The government sought his extradition, and Atilan arrived in Dayton, Ohio on July 27, 2014.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and DCIS. The case is being prosecuted by Assistant U.S. Attorney Dwight Keller of the Southern District of Ohio with assistance from Trial Attorney Dan E. Stigall of the Criminal Division’s Office of International Affairs and Department of Justice Attaché Ellen Endrizzi. The Criminal Division’s Office of International Affairs also provided assistance.Iraq Extradites Fugitive Defense Contractor to U.S. to Face Fraud ChargesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
WASHINGTON – A Las Vegas-based former Department of Defense contractor has been extradited from Iraq to the United States to face fraud and conspiracy charges for attempting to bribe U.S. officials in order to secure government contracts for his companies. Metin Atilan, 54, is the first person extradited from Iraq to the United States pursuant to the U.S.-Iraq extradition treaty of 1936.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Kevin Cornelius of the FBI’s Cincinnati Office and Resident Agent in Charge Bret Flinn of the Defense Criminal Investigation Service (DCIS) made the announcement.
“This historic extradition from Iraq to the United States is an example of our cooperation with law enforcement worldwide to bring fugitives to justice,” said Assistant Attorney General Caldwell. “Atilan’s return to the United States, after more than six years on the run, sends a clear message to fugitives: no matter where in the world you try to hide, we will find you, and we will prosecute you.”
“This case is a tremendous example of a successfully organized and cooperative law enforcement effort put forth by the FBI, DCIS, Interpol and the Iraqi government,” said Special Agent in Charge Cornelius. “I commend the work of the FBI’s Legal Attaché Office and the U.S. Embassy Country Team in Iraq. They have garnered a superior level of law enforcement cooperation between the FBI and Iraqi officials. Without their support, this extradition would not have been possible.”
Atilan, a dual U.S. and Turkish citizen, is scheduled to appear today before U.S. Magistrate Judge Michael R. Merz of the Southern District of Ohio.
Atilan was charged by indictment on June 10, 2008, with conspiracy to engage in contract fraud, conspiracy to engage in wire fraud, and wire fraud. According to court documents, Atilan is President and Chief Executive Officer of PMA Services, Ltd. of Las Vegas and Kayteks Ltd. of Adna, Turkey. In 2006 through 2008, Atilan offered bribes and kickbacks in order to secure contracts for businesses he owned in connection with services and construction associated with U.S. military operations in Iraq. Some of the Defense Department contracting officials who Atilan is accused of trying to bribe were stationed in Dayton at the time.
Atilan was first arrested in Las Vegas on May 23, 2008. Atilan was placed on electronic monitoring pending his formal hearing before a federal judge in Dayton, Ohio. On June 15, 2008, Atilan allegedly violated the terms of his pretrial release by cutting off his electronic bracelet and fleeing the country. The government sought his extradition, and Atilan arrived in Dayton, Ohio on July 27, 2014.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.This case was investigated by the FBI and DCIS. The case is being prosecuted by Assistant U.S. Attorney Dwight Keller of the Southern District of Ohio with assistance from Trial Attorney Dan E. Stigall of the Criminal Division’s Office of International Affairs and Department of Justice Attaché Ellen Endrizzi. The Criminal Division’s Office of International Affairs also provided assistance.
# # #Howard County Bloods Gang Member Exiled to over 16 Years in Prison in Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, today to 193 months in prison followed by three years of supervised release for conspiring to participate in a racketeering conspiracy and using a gun during a crime of violence.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary Gardner; and Howard County State’s Attorney Dario Broccolino.
“Howard County police and prosecutors are working closely with federal agencies to identify and disrupt gangs responsible for violence in the county,” said U.S. Attorney Rod J. Rosenstein.
According to his plea agreement, Ragan-Armstrong was a member of the Bloods, a national criminal street gang. Beginning in at least 2010, Ragan-Armstrong founded “Cut Throat Committee,” or “CTC,” a gang whose members are associated with and/or members of the Bloods gang. CTC operated in and around Howard County, Maryland, and many of the members attended high school together.
Among his criminal activities as a gang member, Ragan-Armstrong admitted that he committed at least two armed robberies of individuals in which drugs, cash and/or other items were stolen. During one of the robberies, a home invasion in Laurel, Maryland, he pistol whipped the victim on the head resulting in serious bodily injury. Ragan-Armstrong regularly sold drugs, primarily marijuana.
On May 8, 2013, Ragan-Armstrong was arrested along with 20 others connected with the Bloods. Law enforcement seized a mask, digital scale, 2 ½ ounces of marijuana packaged for distribution and $371 from an apartment used by Ragan-Armstrong.
During a two day sentencing hearing on July 25 and July 28, 2014, evidence was presented relating to Ragan-Armstrong’s use and sale of weapons used by him and other CTC gang members. The guns were used for protection and to rob individuals who also sold drugs – known by gang members as “licks.” Witnesses also testified about Ragan-Armstrong’s participation in a sexual assault that occurred in December 2010 at an apartment in Catonsville, Maryland known by CTC as the “40 House.” The Court credited the evidence of the sexual assault when it imposed sentence.
Judge Russell sentenced David Jerome Robertson, age 23, of Columbia, Maryland on July 23, 2014 to 81 months in prison for his participation in the conspiracy. In addition to Ragan-Armstrong and Robertson, nine other defendants have pleaded guilty to the racketeering conspiracy, as the result of a two year long investigation by the ATF and Howard County Police Department into Bloods/CTC gang activity in Howard County. Three other individuals pled guilty to narcotics trafficking and five defendants are scheduled for trial on October 14, 2014.
Mr. Rosenstein commended the ATF, Howard County Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Rachel M. Yasser, who prosecuted the case.
Hobbs Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – On July 24, 2014, Carlos Luis Bujanda, 46, of Hobbs, N.M., entered a guilty plea in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge.
Bujanda was arrested on Dec. 12, 2013, on a criminal complaint alleging that he possessed methamphetamine with intent to distribute in Lea County, N.M., on Nov. 14, 2013. He subsequently was indicted in March 2014, on that same charge.
Court filings reflect that Bujanda was arrested by officers of the Lea County Drug Task Force on Nov. 14, 2013, when he attempted to deliver an ounce of methamphetamine to individual who, unbeknownst to him, was working as a confidential informant. After his arrest, officers executed a search warrant at Bujanda’s residence in Hobbs and seized more than 500 grams of substances that tested positive for methamphetamine and $3,366.00 in cash.
During his plea hearing, Bujanda entered a guilty plea to the indictment. In his plea agreement, Bujanda admitted possessing more than 431 grams of pure methamphetamine and $3,366.00 which were seized by officers when they executed a search warrant at his residence on Nov. 14, 2013.
Bujanda has been in custody since his arrest and remains detained pending his sentencing hearing. At sentencing, Bujanda faces a statutory penalty of not less than ten years and not more than life in prison. Under the terms of his plea agreement, Bujanda also must forfeit the currency seized from his residence and a Dodge Ram truck purchased with drug proceeds.
This case was investigated by the Las Cruces office of the DEA and the Lea County Drug Task Force, and is being prosecuted by Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department, the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Historic Clean Water Act Settlement Will Prevent Millions of Gallons of Sewage Discharges into San Francisco BayRead the Press Release
The U.S. Environmental Protection Agency today announced a Clean Water Act settlement requiring the East Bay Municipal Utility District (EBMUD) and seven East Bay communities to conduct extensive system repairs aimed at eliminating millions of gallons of sewage discharges into San Francisco Bay. Under today’s agreement, EBMUD and the communities will assess and upgrade their 1,500 mile-long sewer system infrastructure over a 21-year period. The work is expected to cost approximately $1.5 billion. The entities will pay civil penalties of $1.5 million for past sewage discharges that violated federal environmental law.
Since 2009, EPA, state and local regulators and environmental groups have worked to reduce sewage discharges from East Bay communities. During that period, interim actions required EBMUD and the East Bay communities to improve their sewer maintenance practices and gather information to identify priorities for investment.
The San Francisco Bay covers 1,600 square miles and is the largest Pacific estuary in the Americas, a host for millions of migratory birds and a hub of commerce and recreation for more than 7 million Bay Area residents. Unfortunately, the bay is under threat from many sources of pollution, including crumbling wastewater infrastructure that allows sewage to escape from the system. During rainstorms, in particular, older sewer systems can be overwhelmed, releasing rivers of sewage before fully treated.
In addition to polluting waterways , raw and partially treated sewage can spread disease-causing organisms, metals, and nutrients that threaten public health. Sewage can also deplete oxygen in the bay, threatening fish, seals and other wildlife.
“For many years, the health of San Francisco Bay has been imperiled by ongoing pollution, including enormous discharges of raw and partially treated sewage from communities in the East Bay,” said Jared Blumenfeld, EPA’s Regional Administrator for the Pacific Southwest. “Many of these discharges are the result of aging, deteriorated sewer infrastructure that will be fixed under the EPA order.”
Today’s settlement is the result of a Clean Water Act enforcement action brought by the EPA, U.S. Department of Justice, State Water Resources Control Board, San Francisco Bay Regional Water Board, San Francisco Baykeeper and Our Children’s Earth Foundation.
“This settlement will result in major reductions of sewage discharges into the San Francisco Bay,” said W. Benjamin Fisherow, Chief of Environmental Enforcement in the Justice Department’s Environment and Natural Resources Division. “These improvements will help reach our goal of eliminating pollution in the neighborhoods in these cities and in the bay so that citizens may rest assured that they reside in a safe, clean environment.”
The seven East Bay communities in the EBMUD settlement are:
- City of Alameda
- City of Albany
- City of Berkeley
- City of Emeryville
- City of Oakland
- City of Piedmont
- Stege Sanitary District (serving El Cerrito, Kensington, and a portion of Richmond)
“The public has been required to repair their own sewer laterals for over two years now, so it is past time that the local agencies aggressively repair their sewer systems,” said Bruce Wolfe, Executive Officer of the San Francisco Bay Regional Water Board. “This settlement spells out how the agencies will work with the public over the next 21 years to do just that and protect the bay.”
“Baykeeper will be watching the progress of these repairs closely to ensure that pollution of San Francisco Bay is reduced and eventually eliminated, and we will take action if the repairs fall short,” said Baykeeper Executive Director Deb Self.
On an annual basis, hundreds of millions of gallons of raw and partially treated sewage are discharged directly to San Francisco Bay. Also, as much as 600,000 gallons of raw sewage from community sewer systems is first discharged onto streets and other public areas—through outlets such as manhole covers—before it drains to the bay.
As part of the agreement, EBMUD and the seven communities will:
- repair and rehabilitate old and cracked sewer pipes;
- regularly clean and inspect sewer pipes to prevent overflows of raw sewage;
- identify and eliminate illegal sewer connections;
- continue to enforce private sewer lateral ordinances; and
- ensure proactive renewal of existing sanitary sewer infrastructure.
EBMUD will also immediately begin work to offset the environmental harm caused by the sewage discharges, which are expected to continue until these sewer upgrades are completed, by capturing and treating urban runoff and contaminated water that currently flows to the bay untreated during dry weather.
Keeping raw sewage and contaminated storm water out of the waters of the United States is one of EPA’s National Enforcement Initiatives. The proposed settlement is subject to a 30-day public comment period and final court approval. Read the settlement at: www.usdoj.gov/enrd/Consent_Decrees.html
Learn more about EPA’s national wastewater enforcement initiative at: http://go.usa.gov/5pak
EPA is working to restore San Francisco Bay, learn more at: http://www2.epa.gov/sfbay-delta
Historic Clean Water Act Settlement Will Prevent Millions of Gallons of Sewage Discharges into San Francisco BayRead the Press Release
SAN FRANCISCO – The U.S. Environmental Protection Agency today announced a Clean Water Act settlement requiring the East Bay Municipal Utility District (EBMUD) and seven East Bay communities to conduct extensive system repairs aimed at eliminating millions of gallons of sewage discharges into San Francisco Bay. Under today’s agreement, EBMUD and the communities will assess and upgrade their 1,500 mile-long sewer system infrastructure over a 21-year period. The work is expected to cost approximately $1.5 billion. The entities will pay civil penalties of $1.5 million for past sewage discharges that violated federal environmental law.
Since 2009, EPA, state and local regulators and environmental groups have worked to reduce sewage discharges from East Bay communities. During that period, interim actions required EBMUD and the East Bay communities to improve their sewer maintenance practices and gather information to identify priorities for investment.
The San Francisco Bay covers 1,600 square miles and is the largest Pacific estuary in the Americas, a host for millions of migratory birds and a hub of commerce and recreation for more than 7 million Bay Area residents. Unfortunately, the bay is under threat from many sources of pollution, including crumbling wastewater infrastructure that allows sewage to escape from the system. During rainstorms, in particular, older sewer systems can be overwhelmed, releasing rivers of sewage before fully treated.
In addition to polluting waterways, raw and partially treated sewage can spread disease-causing organisms, metals, and nutrients that threaten public health. Sewage can also deplete oxygen in the bay, threatening fish, seals and other wildlife.
“For many years, the health of San Francisco Bay has been imperiled by ongoing pollution, including enormous discharges of raw and partially treated sewage from communities in the East Bay,” said Jared Blumenfeld, EPA’s Regional Administrator for the Pacific Southwest. “Many of these discharges are the result of aging, deteriorated sewer infrastructure that will be fixed under the EPA order.”
Today’s settlement is the result of a Clean Water Act enforcement action brought by the EPA, U.S. Department of Justice, State Water Resources Control Board, San Francisco Bay Regional Water Board, San Francisco Baykeeper and Our Children’s Earth Foundation.
“This settlement will result in major reductions of sewage discharges into the San Francisco Bay,” said W. Benjamin Fisherow, Chief of Environmental Enforcement in the Justice Department’s Environment and Natural Resources Division. “These improvements will help reach our goal of eliminating pollution in the neighborhoods in these cities and in the bay so that citizens may rest assured that they reside in a safe, clean environment.”
The seven East Bay communities in the EBMUD settlement are:
- City of Alameda
- City of Albany
- City of Berkeley
- City of Emeryville
- City of Oakland
- City of Piedmont
- Stege Sanitary District (serving El Cerrito, Kensington, and a portion of Richmond)
“The public has been required to repair their own sewer laterals for over two years now, so it is past time that the local agencies aggressively repair their sewer systems,” said Bruce Wolfe, Executive Officer of the San Francisco Bay Regional Water Board. “This settlement spells out how the agencies will work with the public over the next 21 years to do just that and protect the bay.”
“Baykeeper will be watching the progress of these repairs closely to ensure that pollution of San Francisco Bay is reduced and eventually eliminated, and we will take action if the repairs fall short,” said Baykeeper Executive Director Deb Self.
On an annual basis, hundreds of millions of gallons of raw and partially treated sewage are discharged directly to San Francisco Bay. Also, as much as 600,000 gallons of raw sewage from community sewer systems is first discharged onto streets and other public areas—through outlets such as manhole covers—before it drains to the bay.
As part of the agreement, EBMUD and the seven communities will:
- repair and rehabilitate old and cracked sewer pipes;
- regularly clean and inspect sewer pipes to prevent overflows of raw sewage;
- identify and eliminate illegal sewer connections;
- continue to enforce private sewer lateral ordinances; and
- ensure proactive renewal of existing sanitary sewer infrastructure.
EBMUD will also immediately begin work to offset the environmental harm caused by the sewage discharges, which are expected to continue until these sewer upgrades are completed, by capturing and treating urban runoff and contaminated water that currently flows to the bay untreated during dry weather.
Keeping raw sewage and contaminated storm water out of the waters of the United States is one of EPA’s National Enforcement Initiatives. The proposed settlement is subject to a 30-day public comment period and final court approval. Read the settlement at: www.usdoj.gov/enrd/Consent_Decrees.html
Learn more about EPA’s national wastewater enforcement initiative at: http://go.usa.gov/5pak
EPA is working to restore San Francisco Bay, learn more at: http://www2.epa.gov/sfbay-delta
Fruitland Man Sentenced to Twenty-Two and a Half Years in Federal Prison for Killing Two-Year-Old Navajo ChildRead the Press Release
ALBUQUERQUE – Jason Yazzie, 31, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., was sentenced today to 270 months (22.5 years) in federal prison for his voluntary manslaughter and assault conviction. Yazzie will be on supervised release for three years after completing his prison sentence.
Yazzie was arrested on Aug. 6, 2013, based on a criminal complaint alleging that he killed a two-year-old Navajo child on Aug. 2, 2013, in a location within the Navajo Indian Reservation. On April 28, 2014, Yazzie entered a guilty plea to a felony information charging him with voluntary manslaughter and assault resulting in serious bodily injury charges.
In his plea agreement, Yazzie admitted that on Aug. 2, 2013, he became extremely frustrated with the child, who had been left in his care, and repeatedly struck the child about the torso, causing the child to sustain severe chest and abdominal injuries. Yazzie also admitted that he threw the child approximately five feet in the air and across the room, causing the child to sustain severe head and neck trauma. Yazzie admitted that he acted in frustration and in the heat of passion and that his actions caused the child’s death.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Fresno Man Sentenced to Seven Years in Prison for Receipt of Child PornographyRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced Roy Palomera, 24, of Fresno, to seven years in prison, to be followed by 18 years of supervised release, for receipt of child pornography, United States Attorney Benjamin B. Wagner announced. Palomera was ordered to pay $5,000 in restitution to one victim whose images he possessed.
According to court documents, investigators determined that Palomera was making child pornography available through a file-sharing program. When a search warrant was executed at his residence on August 30, 2012, his computer contained numerous images of minors being sexually abused. Some of the victims were prepubescent, and several images depicted violence, bondage, or other sadistic or masochistic conduct.
“This sentence should serve as a sobering reminder of the consequences facing those who sexually exploit defenseless children,” said Nick Annan, acting special agent in charge for Homeland Security Investigations San Francisco. “This defendant was among 14 individuals arrested in the Fresno area as part of Operation Sunflower, a nationwide enforcement action led by Homeland Security Investigations targeting Internet child predators. The reality is, every time a photo or a video of an innocent child being sexually exploited is viewed, that victim is violated again. That is why we owe it to all of the children identified in these cases to work tirelessly to see that all perpetrators involved in any form of child exploitation are brought to justice.”
This case was the result of an investigation by the Fresno office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant United States Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Former Iowa City Man Sentenced to 151 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
DAVENPORT, IA – On July 28, 2014, Luis Chavez Preciado, age 28, was sentenced by United States District Judge John A. Jarvey to 151 months imprisonment for conspiracy to distribute at least 500 grams of a mixture or substance containing methamphetamine and 50 grams of actual methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. The defendant was also ordered to serve five years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
Beginning on approximately May 21, 2013 and continuing until about September 10, 2013, Preciado conspired with others to distribute ice methamphetamine in the Iowa City and Muscatine areas. On seven occasions during the above-mentioned period Preciado or his codefendant, Nasra Lorette Fernandez Kury, sold ice methamphetamine directly to an undercover law enforcement officer. Preciado was aware of each of these transactions and was involved and assisted with many of them. As part of the investigation, law enforcement officers conducted a search of Preciado’s Iowa City residence and seized 1,099 grams of ice methamphetamine, digital scales, a shotgun and ammunition, among other items.
This case was investigated by the Muscatine County Drug Task Force; Iowa Department of Public Safety-Division of Narcotics Enforcement; Johnson County Multijurisdictional Drug Task Force; Johnson County Sherriff’s Office; Muscatine, Iowa, Police Department; Iowa City, Iowa, Police Department; and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Former Fairfield Community High School Coach Charged with Attempted Sexual Exploitation of Minors and Possession of Visual Depictions of Minors Engaged in Sexually Explicit ConductRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on July 28, 2014, Timothy C. Going, 43, formerly of Fairfield, IL, where he worked as the coach for the cross country team, the assistant coach for the track team, and a math teacher at Fairfield Community High School, was arraigned on a four-count Indictment charging him, in Counts 1 through 3, with the Attempted Sexual Exploitation of a Minor or Minors, and, in Count 4, with Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct. A detention hearing has been scheduled for August 5, 2014, to determine whether or not Going should be held without bond pending trial.
Counts 1 through 3 of the Indictment allege that between August 24, 2012, and August 25, 2012, and between October 26, 2012, and October 27, 2012, and between November 1, 2013, and November 2, 2013, Going attempted to sexually exploit minors by using these minors in an attempt to produce child pornography. Count 4 alleges that, on May 9, 2014, Going knowingly possessed a desktop computer and a laptop computer, both of which contained visual depictions of minors engaged in sexually explicit conduct.
Trial is scheduled for September 30, 2014. The penalties for each count of Attempted Sexual Exploitation of a Minor or Minors are a term in prison of not less than fifteen years, but not more than thirty years, a fine up to $250,000, and a term of supervised release of not less than five years to life. The penalties for the offense of Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct are a term in prison of not more than ten years, a fine up to $250,000, and a term of supervised release of not less than five years to life.
An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent of the charges until proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
The case was investigated by the Illinois State Police, the Fairview Heights Police Department, and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Former Director of Rocky Boy’s Wellness Center Sentenced to Prison for EmbezzlmentRead the Press Release
The United States Attorney's Office announced that Wilbur Harlan "Huck" Sunchild, 49, of Box Elder, Montana, was sentenced to one year in prison, two years supervised release, a special assessment of $100, and restitution of $19,735.77 during a federal court hearing in Great Falls, Montana, on July 24, 2014, before U.S. District Judge Brian M. Morris.
Sunchild was sentenced after a jury convicted him on all three counts of embezzlement from the Rocky Boy's Wellness Center. At trial, Assistant United States Attorneys Ryan G. Weldon and Jessica A. Betley proved that Sunchild created a secretive account at Native American Bank. Sunchild then diverted over $26,000 in funds for the Rocky Boy's Wellness Center to his own personal use, including gambling. Over the course of a three-month period, the account was drained. Bank records reflected that Sunchild withdrew the funds from numerous casinos in Havre, Chinook, and Great Falls. At sentencing, the government stated, "Sunchild's conduct was intentional, deceitful, and it is not his first time attempting to steal money from others for his own benefit."
Montana U.S. Attorney Mike Cotter stated, "This prosecution addresses and underscores the harm that is done to a community when individuals decide to misuse and abuse grant money. The United States Attorney's Office is committed to ensuring federal and tribal money is protected so that it can be applied to the communities it was intended to serve."
Gerald T. Roy, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services (OIG-HHS) stated, "Our office will continue to aggressively pursue those individuals who misuse HHS grant funds for their own personal benefit."
The District Court sentenced Sunchild to a year in federal prison, with two years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Sunchild will serve all of the time imposed by the court. In the federal system, SUNCHILD does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This case was investigated by OIG-HHS and the Federal Bureau of Investigation.
Fairbanks Man Sentenced to 57 MonthsRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a man from Fairbanks, Alaska was sentenced in federal court for possession of cocaine with the intent to distribute.
Etienne Devoe, 41, from Fairbanks, Alaska, was sentenced in Anchorage, Alaska, on Monday, July 28, 2014, by Chief United States District Court Judge Ralph R. Beistline. Devoe received a sentence of 57 months in prison, a fine of $2,240, and three years of supervised release for his conviction of possession of cocaine with intent to distribute.
Devoe was convicted by a Fairbanks jury on May 1, 2014. The evidence established that Devoe was present in a residence in Fairbanks, Alaska, on February 1, 2012, when law enforcement served a federal search warrant on the residence in connection with a separate federal indictment. During the search of the residence, a duffle bag was found in the room where Devoe had been sleeping. Inside the duffle bag, investigators found six ounces of powder cocaine and a small amount of crack cocaine. Also inside the duffle bag police found a pair of men's pants consistent with Devoe's size, and in one of the pants’ pockets law enforcement found a men's wallet that contained Devoe's identification and other documents with Devoe's name on them. Inside another pocket, law enforcement found $2,240, with the money wrapped in bundles of $1,000 and $240.
Before imposing a sentence, Chief Judge Beistline commented that the community was impacted by the defendant's drug dealing. Chief Judge Beistline noted that the defendant is the father of eight children with six different mothers and that the defendant's long history of convictions for domestic violence was part of a dysfunctional cycle. Chief Judge Beistline also commented that the defendant's activities were a danger to the community; in June 2013, the defendant was found inside a house in Fairbanks that had seven shots fired at it during a drive-by shooting.
Chief Judge Beistline ordered the $2,240 fine to be used to pay the defendant's outstanding child support bills.
Devoe has another federal trial scheduled for February 2015, where he is charged in a separate matter as a member of a large scale drug conspiracy.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Fairbanks Police Department, and the Alaska State Troopers for the investigation leading to the successful prosecution of Mr. Devoe.
FLORIDA BUSINESSMAN PLEADS GUILTY TO CONSPIRING TO DEFRAUD INVESTORS over 100 Investors Lost More Than $11 Million in SchemeRead the Press Release
ORLANDO, FLA. –Blayne S. Davis, 33, formerly of Naples, Fla., pled guilty today to a federal charge stemming from an investment fraud scheme in which more than 100 investors lost over $11 million, announced U.S. Attorney Ronald C. Machen Jr. and James D. Robnett, Special Agent in Charge of the Tampa Field Office of IRS- Criminal Investigation.
Davis pled guilty in the U.S. District Court for the Middle District of Florida to a charge of conspiracy to commit mail and wire fraud. He is to be sentenced Oct. 9, 2014.
The charge carries a maximum of 20 years of imprisonment and financial penalties. The parties agreed that, under the federal sentencing guidelines, Davis faces a range of between 87 and 168 months in prison and a fine of between $12,500 and $175,000. He also will be required to pay restitution of $11,894,776 to the investors who lost money.
Davis has agreed to cooperate in the ongoing investigation. A co-defendant, Donovan G. Davis, Jr., 33, of Palm Bay, Fla., has pled not guilty and is awaiting trial in the case; he is not related to Blayne Davis. A third defendant, Damien L. Bromfield, 37, of Ocoee, Fla., pled guilty on Nov. 14, 2013, to conspiracy to commit wire fraud and is awaiting sentencing.
According to a Statement of Offense, signed by Blayne Davis as well as the government, and filed with the Court today, Blayne Davis was the director of trading for Capital Blu Management, LLC, a Florida-based corporation that purported to offer investment and managed account services for investors in the off-exchange foreign currency, or “forex,” marketplace. Donovan Davis, Jr. was the managing member of Capital Blu, and Bromfield was the director of operations.
Blayne Davis and Bromfield formed Capital Blu in January 2007. In 2007, according to the statement of offense, Donovan Davis, Jr. solicited relatives, friends, and associates to invest in Capital Blu, resulting in substantial amounts being placed under the company’s management. Donovan Davis, Jr., became a managing member of Capital Blu in August 2007, working out of an office in Melbourne, Fla.
In or about September 2007, according to the statement of offense, the three men formed the CBM FX Fund, LP, which pooled investors’ money into a common fund to be traded by Capital Blu Management. Many of Capital Blu’s managed-account investors transferred their investments into the CBM FX Fund.
By January 2008, according to the statement of offense, the three partners knew that the CBM FX Fund sustained significant trading losses, resulting in large losses for its investors. At or about that time, the statement of offense states, the men began defrauding investors by means of materially false and fraudulent pretenses, representations, and promises. These included, according to the statement of offense, a series of misrepresentations about Capital Blu’s trading performance, the value of the fund, and the risks of the fund.
According to the statement of offense, the men conspired to post positive monthly returns to the CBM FX Fund’s investors from January through August of 2008, even though the fund and its investors had sustained net losses. In addition, the men diverted investors’ money from the fund to pay for Capital Blu’s operational expenses and personal expenses, including their salaries and payments for the use of a private airplane.
In or about September 2008, the National Futures Association, an independent self-regulatory organization that oversees commodities and futures trading in the United States, conducted a surprise audit of Capital Blu and suspended its operations. As of September 2008, according to the statement of offense, investors had invested over $16 million into the CBM FX Fund; the investors had lost over $11 million.
This case was transferred to the U.S. Attorney’s Office for the District of Columbia from the Middle District of Florida.
The case is being investigated by a task force consisting of agents from the IRS- Criminal Investigation, the U.S. Secret Service, the Florida Department of Law Enforcement, and the Brevard County, Fla., Sherriff’s Office. Related civil litigation was pursued by the Commodity Futures Trading Commission.
Assistance on the criminal case was provided by Paralegal Specialists Donna Galindo and Corinne Kleinman; former Paralegal Specialist Diane Hayes; Legal Assistant Angela Lawrence; Forensic Accountant Crystal Boodoo; Information Technology Specialist Thomas (Ron) Royal; and Victim Witness Advocates Yvonne Bryant and Tasheeka Hawkins, all of the U.S. Attorney’s Office for the District of Columbia. Assistant U.S. Attorneys Catherine K. Connelly and Anthony Saler, of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia, have assisted with guidance on asset forfeiture matters.
The case is being prosecuted by Assistant U.S. Attorneys Jonathan P. Hooks and Ephraim (Fry) Wernick of the U.S. Attorney’s Office for the District of Columbia, who are designated as Special Attorneys in the Middle District of Florida.14-174
Drug Gang Enforcer Sentenced to Five Years in Federal PrisonRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced that Kamel Auntae Burris, 31, of Huntington, West Virginia was sentenced today to five years in federal prison for using a firearm in furtherance of a crime of violence. In November of 2013, Burris, who was wearing a mask, robbed a known drug dealer at gun point. The robbery occurred at the drug dealer’s apartment on 10th Street in Huntington.
This case arose out of a joint law enforcement investigation of Kenneth Dewitt Newman and his organization for the distribution of illegal drugs in the Huntington area. The Newman organization was responsible for the distribution of cocaine, crack cocaine, heroin, prescription pills, MDMA (a street drug akin to Ecstasy) and marijuana. The investigation led to the indictment of 15 defendants, including Burris, for their various roles in the conspiracy. Burris has been described as an enforcer for the Newman organization.
The investigation was conducted by the United States Drug Enforcement Administration, Huntington Police Department, Metropolitan Drug Enforcement Network Team and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Corinth Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that David
Livingston Brown, 40, of Corinth, Maine, pleaded guilty today in U.S. District Court in Bangor
to possession of child pornography.According to court records, in April 2013, the defendant emailed a video containing child
pornography to an undercover Federal Bureau of Investigation (FBI) special agent. On July 18,
2013, a search warrant was executed at the defendant’s residence in Corinth. The defendant
admitted sending and receiving images of child pornography by email and collecting hundreds of
images and videos of child pornography over several years. A forensic examination of
computers and computer storage devices seized from the residence revealed hundreds of images
and videos of child pornography.The defendant faces up to 20 years in prison and a $250,000 fine. He will be sentenced
after the completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted jointly by the FBI and the Maine State Police Computer
Crimes Unit. 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 U.S. Attorneys’ Offices and the 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 www.projectsafechildhood.gov.Convenience Store Owner and Manager Sentenced for Running Massive Food Stamp Fraud SchemeRead the Press Release
Scheme Caused Nearly $2 Million in Losses to SNAP Program
DALLAS — Two North Texas men have been sentenced for their roles in a massive food stamp fraud scheme that caused nearly $2 million in losses to the Supplemental Nutrition Assistance Program (SNAP), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Kamardeen Ogunleye, 52, of Arlington, Texas, was sentenced by Chief U.S. District Judge Sidney A. Fitzwater on Friday to 60 months in federal prison. On Thursday, July 24, 2014, Robert Gordon, 31, of Balch Springs, Texas, was sentenced by Judge Fitzwater to 27 months in federal prison. Each was also ordered to pay approximately $1.9 million in restitution, jointly and severally, to the U.S. Department of Agriculture (USDA), Food and Nutrition Service. Both must surrender to the Bureau of Prisons on September 9, 2014.
In April 2014, both Ogunleye and Gordon pleaded guilty to one count of conspiracy to commit food stamp fraud. Ogunleye also pleaded guilty to one count of wire fraud.
Ogunleye owned and operated KSO Dollar Mart, located in a strip mall at 1918 Martin Luther King Jr. Boulevard in Dallas. Gordon managed the business for Ogunleye. Ogunleye’s and Gordon’s scheme was funneled through this storefront, which offered very few food and beverage items to its customers.
According to plea documents filed in the case, from March 2010 to September 2013, Ogunleye and Gordon devised and executed a scheme to defraud the USDA by using, acquiring, transferring and possessing SNAP benefits. Ogunleye and Gordon conspired to purchase food stamp benefits from actual recipients in exchange for cash and at an approximately 50 percent exchange rate, meaning Ogunleye and Gordon would pay recipients approximately one dollar in exchange for every two dollars’ worth of benefits. Recipients were then free to spend the exchanged-for-cash without the restrictions imposed on SNAP benefits. Both Ogunleye and Gordon knew it was illegal to transfer SNAP benefits in exchange for cash, or for any consideration other than eligible food items.
The full amount of SNAP benefits redeemed in exchange for discounted cash were deposited into Ogunleye’s Omni American Bank and Bank of America accounts held in Arlington, Texas. Between April 9, 2010, and June 17, 2013, SNAP redemptions totaling $2,109,859 were deposited into those two accounts.
Ogunleye, who provided all cash funds that were distributed to customers in exchange for benefits, also collected and retained the bulk of the proceeds obtained from SNAP because of this scheme. For his part as a store clerk, Gordon, who was instructed by Gordon to purchase food stamp benefits in exchange for cash, received a weekly salary from Ogunleye ranging from $300 - $600 throughout the course of his participation in the conspiracy.
The USDA Office of Inspector General investigated the case. Assistant U.S. Attorney P. J. Meitl prosecuted.
Cocaine Dealer in St. Mary’s County Drug Trafficking Conspiracy Sentenced to 14 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Alrahman Sharif Allen, a/k/a “Rock” and “Rahman Allen;” age 38, of Reisterstown, Maryland today to 14 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base; and for violating his supervised release. Chief Judge Chasanow also entered an order requiring Allen to forfeit $14,706 seized from his residence during the execution of a search warrant, and a Land Rover.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; St. Mary’s County Sheriff Tim Cameron; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement, from February 2012 to April 2013, Allen obtained cocaine and heroin from coconspirator Jamar Holt, for distribution to customers. Allen stored drugs in his apartment and at other locations. After he received the drugs, Allen called co-conspirator Damon Estep to coordinate the delivery of cocaine to Estep and other conspirators from St. Mary’s County. On a nearly weekly basis, the conspirators would meet in Glen Burnie to pay Allen for the drugs to be distributed in St. Mary’s County. Allen agreed that he was responsible for the distribution of between five and 15 kilograms of cocaine hydrochloride, and between 280 and 840 grams of cocaine base, during the conspiracy.On April 25, 2013, law enforcement executed a search warrant at Allen’s residence and seized 29 grams of cocaine that Allen was attempting to flush down the toilet, 14 cell phones, $14,706 in drug proceeds and drug paraphernalia.
Allen had been sentenced on July 23, 2000 in federal court in Maryland to 168 months in prison followed by five years of supervised release for distributing and possessing with intent to distribute cocaine base. His drug trafficking activities occurred while on supervised release, thereby violating his terms of release.
Chief Judge Chasanow previously sentenced Jamar Holt, a/k/a “Reds,” “Jamal Holt” and “Rex,” age 36, of Baltimore, Maryland, to 20 years in prison; Damon Jerome Estep, a/k/a “Country,” age 38, of California, Maryland, to 188 months in prison; and Jeffrey Kirk Berry, a/k/a “Kojack,” to 15 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, St. Mary’s County Sheriff’s Office, and IRS-Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah Jo Bressack, Deborah Johnston and James A. Crowell IV, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Cedar Rapids Man and Woman Charged with Bank Robbery and Firearm OffenseRead the Press Release
Javon Dockery, age 29, and Bria Daudinot, age 21, both of Cedar Rapids, Iowa, have been indicted on charges of bank robbery and possession of a firearm in furtherance of a crime of violence. The charges are contained in an Indictment filed on July 8, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about June 26, 2014, Dockery and Daudinot robbed and aided and abetted the robbery of the 16th Avenue branch of the US Bank in Cedar Rapids. The Indictment also alleges that Dockery possessed and brandished a firearm in furtherance of the robbery.
If convicted on all charges, Dockery faces a mandatory minimum sentence of 7 years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, a $200 special assessment, and up to 5 years on supervised release following any imprisonment. If convicted, Daudinot faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and up to 3 years on supervised release following any imprisonment.
Dockery and Daudinot made their initial appearance in federal court in Cedar Rapids on July 22, 2014, and Daudinot appeared for a detention hearing on July 24, 2014. Both were held without bond. Their next appearance for trial is set for September 22, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-68.
Carter County Mother Pleads Guilty to Performing and Photographing Sex Acts with Her DaughtersRead the Press Release
The Three Victims Were Between the Ages of Two and Eight
GREENEVILLE, Tenn. – On Monday, July 28, 2014, Crystal Renee Dawn Poore, 32, of Elizabethton, Tenn., pleaded guilty in U.S. District Court for the Eastern District of Tennessee at Greeneville, to three counts of production of child pornography. Sentencing has been set for 1:30 p.m., on Oct. 20, 2014.
Poore faces a minimum term of 15 years and not more than 30 years in prison on each count. Federal sentences are not subject to parole.
In July 2013 a three-count indictment, outlining these charges, was returned against Poore by a federal grand jury sitting in Greeneville, Tenn. A factual basis filed in U. S. District Court in Greeneville lays out the details of the abuse which ended with the rescue of the girls from the home by the Knoxville Police Department Internet Crimes again Children (ICAC) Task Force with assistance from Carter County Sheriff’s Department and Tennessee Department of Children Services.
U.S. Attorney Bill Killian stated “While we are saddened about the abuse these children endured, we are very grateful that the dedication of the Knoxville Police Department Internet Crimes Against Children Task Force resulted in the crimes being detected and the children quickly rescued.”
This indictment was the result of an investigation by the Knoxville Police Department ICAC. Robert M. Reeves, Assistant U.S. Attorney represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
California Man Pleads Guilty to Maryland Murder Solved by DNARead the Press Release
DNA Sample Taken by California Police in 2013 Matched 2009 Maryland Murder Scene
Baltimore, Maryland - Dellando Recardo Campbell, age 31, of Lemoore, California, pleaded guilty today to interstate domestic violence resulting in the death of a spouse, in connection of the death of Serika Dunkley Holness.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“The blood Dellando Campbell left behind at the 2009 crime scene was analyzed and entered into a national DNA database, where it waited four years for a match,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a routine DNA analysis performed in California when Mr. Campbell was arrested on an unrelated charge, Maryland authorities finally learned the identity of the second killer of Serika Dunkley Holness.”
According to his plea agreement, Campbell conspired with Ryan Dave Holness to murder Ryan Holness’ wife, Serika Dunkley Holness. Campbell had known Holness since 2002, when they served together in the Navy. Between May and June 4, 2009, Holness contacted Campbell by phone and text at least 34 times and arranged for Campbell to travel to New York City to assist in the murder of Serika Holness. On June 4, 2009, Holness stated explicitly to Campbell that he was going to kill the victim and that he needed Campbell’s assistance to make the murder appear to have been committed during a carjacking on the drive to Maryland.
Campbell admitted that on the evening of June 4, 2009, Holness drove Campbell and the victim from New York to Maryland. At around 1:30 a.m. on June 5, 2009, Holness, Campbell and the victim arrived at a rural area along MD Route 290, just south of MD Route 291, in Crumpton, Kent County, MD. Holness parked the Honda on a farm access road. Serika Holness was murdered in a field beside Route 290 where she was repeatedly stabbed, resulting in her death.
Campbell purposely left his own blood at the murder scene in order to provide support for Holness’s plan to tell the police that an unknown carjacker had attacked Holness and murdered the victim. Campbell admitted that he helped Holness stage the crime scene by depositing droplets of blood at various locations inside the passenger compartment of the Honda and on several of the victim’s personal items that were placed at the crime scene to be discovered by the police. Items at the murder scene from which Campbell’s DNA was later recovered included the victim’s purse, one of her sandals and a paperback book. Campbell then drove the Honda, guided by a GPS system, to a location between 6th and 7th Streets NW, Washington, D.C., where it was located and seized by homicide investigators later on June 5, 2009. Meanwhile, Holness told the police a bizarre false story about the supposed carjacking.
After a two week trial, Ryan Holness, age 33, formerly of Lexington Park, Maryland, was convicted of domestic violence resulting in the death of a spouse and sentenced on June 9, 2011, to life in prison.
The DNA profile of the unidentified male found in Holness’ car and on items at the crime scene was entered into the national DNA data base, where it was regularly compared with DNA profiles recovered since its entry. On October 22, 2013, a sample of Campbell’s DNA was routinely obtained by police in Lemoore, California. In January 2014, the California Department of Justice notified the Maryland State Police that Campbell’s DNA profile matched the DNA profile for the unidentified male in the Holness case. Campbell was arrested by the Maryland State Police and FBI in Lemoore, California on February 7, 2014.
If U.S. District Judge William M. Nickerson accepts the plea agreement, Campbell will be sentenced to 30 years in prison on November 5, 2014.
United States Attorney Rod J. Rosenstein praised the Maryland State Police and FBI for their work in the investigation and thanked the Kings County, California, District Attorney’s Office, the California Department of Justice and the Lemoore, California, Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys John F. Purcell, and Kenneth S. Clark, who are prosecuting the case.
Boeing Subcontractor Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO – JEFFREY LAVELLE, owner and operator of J. L. Manufacturing pled guilty to multiple counts of mail and wire fraud in connection with a bribery/kickback scheme involving Boeing military aircraft parts.
Boeing Company Defense Space and Security Division is a defense contractor providing military-style aircraft to the United States Department of Defense and the United States armed services with offices and procurement operations located in St. Louis. Deon Anderson was a Procurement Officer for Boeing, residing in the St. Louis area.
J. L. Manufacturing of Everett, Washington, is an aerospace job machine shop specializing in hard metals, with the capability of producing small to medium-sized complex parts of ferrous and non-ferrous materials, and was a sub-contractor to Boeing on numerous United States government contracts. Jeffrey Lavelle, owner and operator of J. L. Manufacturing, directed the day-to-day operations of the company, and oversaw all financial aspects of the company.Inland Empire and Associates, Inc., Las Vegas, Nevada, is engaged in consulting to defense aircraft manufacturers and parts suppliers, including consulting for J. L. Manufacturing. Robert Diaz, Jr. was the owner and operator of Inland Empire, and personally consulted to J. L. Manufacturing and Jeffrey Lavelle relative to numerous Boeing sub-contracts.
Globe Dynamics International, Inc., Santa Ana, California is a leader in producing small to large, close tolerance precision machined parts and the assembly of complex components. Globe Dynamics was a sub-contractor to Boeing on numerous United States government contracts. William Boozer, owner and operator of Globe Dynamics, directed the day-to-day operations of the company, including the submission of contract bids.
Beginning in May 2011 and continuing through April 2013, Deon Anderson provided J.L. Manufacturing, through Lavelle and Diaz, non-public competitor bid information and historical price information in connection with one and more Boeing military aircraft part purchase order requests for quotes. Lavelle used that information in preparing and submitting bids on behalf of J.L. Manufacturing to Boeing for approximately nine different Boeing requests for quotes relative to those various purchase orders. Of those nine, J.L. Manufacturing was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of approximately $2,052,746. In exchange for that information, they made cash payments to Anderson in St. Louis and in California.
Jeffrey Lavelle, Mukilteo, WA, pled guilty to one count of mail fraud and two counts of wire fraud before United States District Judge Henry Autrey, in St. Louis. Sentencing has been set for October 27, 2014.
Co-defendants Deon Anderson, St. Louis; William P. Boozer, Hacienda Heights, CA; and Robert Diaz, Jr., Alta Loma, CA, previously pled guilty to related charges and are scheduled for sentencing October 15, 2014, August 15, 2014, and September 2, 2014, respectively.
Each count of mail and wire fraud carries a maximum penalty of 20 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 Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service, and Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Belcourt Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on July 28, 2014, Robert DeLong Jr., 30, Belcourt, N.D., was sentenced by U. S. District Judge Daniel L. Hovland to serve two years and nine months in prison for the charge of assault with a dangerous weapon. DeLong pleaded guilty to the charge on April 11, 2014.
On July 4, 2012, DeLong struck a woman in the face, causing a torn retina, which required eye surgery to repair.
Judge Hovland also ordered DeLong to complete three years of supervised release and to pay a $100 special assessment to the Crime Victim’s Fund.
The case was investigated by Bureau of Indian Affairs – Turtle Mountain Agency.
The case was prosecuted by Assistant U. S. Attorney Brandi Russell.
Apopka Man Sentenced to 15 Years for Possessing FirearmsRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza sentenced Jermal Marquis Chambers (26, Apopka) to 15 years in federal prison for possession of firearms and ammunition in furtherance of a drug trafficking crime, and possession of firearms and ammunition by a convicted felon. The sentence included 10 years for possessing the firearms in furtherance of a drug trafficking crime and 5 years for the possession by a convicted felon offense, to be served consecutively. The Court also ordered Chambers to forfeit 10 firearms and hundreds of rounds of ammunition that he possessed. Chambers pleaded guilty on March 31, 2014. He was sentenced on July 25, 2014.
According to the plea agreement, on May 7, 2013, the Orange County Sheriff’s Office (OCSO) responded to the scene of a shooting in Apopka in which multiple attackers used multiple firearms to shoot at several victims. Evidence retrieved at the scene included .40 caliber, 9 mm, and .45 caliber shell casings. One victim was severely injured with a gunshot wound to his pelvis.
During the afternoon of May 7, 2013, unknown assailants shot at Chambers and his uncle outside an apartment complex. No one was injured during the incident.
Late in the evening on May 9, 2013, OCSO responded to another scene of a shooting in Apopka. Multiple attackers had fired bullets into a house where Chambers lived. A subsequent examination of the residence revealed approximately 68 bullet holes in the structure, along with fired cartridges from at least three firearms of different calibers near the structure.
During the execution of a search warrant at the residence, agents found several canvas bags holding a stash of cocaine and related drug paraphernalia, seven firearms, including a .223 caliber assault rifle, a nine millimeter pistol, two .38 caliber pistols, a 12-gauge shotgun, a .22 caliber rifle, and a .40 caliber pistol, along with hundreds of rounds of ammunition for these firearms. A forensic examination of shell casings recovered from the first shooting incident on May 7, 2013, revealed that they were fired from the assault rifle found in Chambers’ home. DNA evidence also established that Chambers had held the .22 caliber rifle.
Chambers was previously convicted of felony burglary in 2006 and was, therefore, prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Bruce S Ambrose. This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.
Ambulance Company Owner Sentenced to Eight Years for Medicare FraudRead the Press Release
PHILADELPHIA – Anna Mudrova, 41, of Huntingdon Valley, PA., was sentenced today to eight years in prison for her role in a health care fraud scheme involving Penn Choice Ambulance Inc., operating from Huntingdon Valley, PA and Camp Hill, PA. Mudrova pleaded guilty on February 12, 2014, to conspiracy to commit health care fraud. Mudrova, who was the owner of Penn Choice, was indicted with Mikhail Vasserman, Yury Gerasyuk, Irina Vasserman, Aleksandr Vasserman, Khusen Akhmedov, and Valeriy Davydchik, all of whom have pleaded guilty.
The scheme involved more than $3.6 million in fraudulent claims submitted to Medicare. The defendants conspired to defraud Medicare by recruiting patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The defendants, and others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants knew that the patients could be transported safely by other means and that many of them walked to the ambulance for transport. The defendants, themselves, or through others, paid illegal kickbacks to the patients as part of scheme. The defendants billed Medicare for these ambulance services as if those services were medically necessary and, as a result of the fraudulent billing, the Medicare program sustained losses of more than $1.5 million for this medically unnecessary method of transportation.
In addition to the prison term, U.S. District Court Judge Juan R. Sànchez ordered three years of supervised release, restitution in the amount of $1,860,543.42 , joint and several with the co-defendants, a special assessment of $100 and forfeiture of any assets traceable to the offense.
In prior proceedings, defendant Mikhail Vasserman, the manager for Huntingdon Valley, was sentenced to five years in prison; defendant Khusen Akhmedov, an EMT, was sentenced to 27 months in prison; ambulance drivers, Valeriy Davydchik and Yury Gerasyuk, were each sentenced to 24 months in prison; and the corporation was ordered to pay restitution and to cease all operations. The two remaining defendants are awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.
In addition to restitution to Medicare of $1,548,583.93, the Court ordered restitution to other insurance providers including approximately $154,866.81 payable to Highmark Inc.; approximately $128,498.86; payable to Humana, and others.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Charles Padilla, 46, of Albuquerque, N.M., pleaded guilty today to federal methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Padilla will be sentenced to 15 years in federal prison followed by a term of not less than five years of supervised release.
Padilla was arrested on Nov. 30, 2012, based on a criminal complaint charging him with possession of methamphetamine with intent to distribute. Padilla subsequently was indicted in Dec. 2012, and charged with two counts of possession of methamphetamine with intent to distribute and two counts of using and carrying firearms in furtherance of drug trafficking crimes.
According to court filings, on Nov. 30, 2012, law enforcement officers seized approximately 21 pounds of methamphetamine that were concealed in an underground storage area when they searched a residence located in southwest Albuquerque. Thereafter, officers surreptitiously recorded a telephone conversation during which Padilla acknowledged ownership of the methamphetamine. Following Padilla’s arrest, officers searched his residence and seized 19 firearms.
Today Padilla pled guilty to one methamphetamine trafficking count and one firearms count. In his plea agreement, Padilla admitted that on Nov. 30, 2012, he unlawfully possessed methamphetamine with the intention of distributing it to others. He also admitted possessing a firearm in furtherance of a drug trafficking crime.
Padilla was remanded into federal custody after entering his guilty plea. He will be detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorneys Jack E. Burkhead and Shana B. Long.
Saturday 26 July 2014
Serial Bank Burglar Sentenced to Eight YearsRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore sentenced Tyrone Michael Brinkley (45, Spring Hill) today to 8 years in federal prison for multiple bank burglaries that he committed in the Tampa Bay area between December 3, 2012, and January 5, 2013. Brinkley pleaded guilty on May 2, 2013.
According to court documents, Brinkley was released from prison in North Carolina in November 2012, after serving a prison term for a series of bank burglaries that he committed in the Durham area. Upon his release, Brinkley moved to Hernando County, Florida, and within two weeks began another crime spree, burglarizing nine banks in the Tampa Bay area. Three of the burglaries occurred on Christmas eve. During each burglary, Brinkley broke into the bank in the middle of the night. He shattered the glass window with a rock, used a pry bar to open drawers at teller stations, and removed loose and wrapped coins or cash.
During the execution of a search warrant at Brinkley's Spring Hill residence, law enforcement officers located the tools Brinkley used during the burglaries, including, among other things, a blue duffle bag containing a pry bar, gloves, pieces of broken glass, a knit cap, and a Garmin GPS. Records showed that Brinkley has over 40 prior criminal convictions and has been a habitual bank burglar since at least 1999.
This case was investigated by the Federal Bureau of Investigation, the Hernando County Sheriff's Office, the Brooksville Police Department, the Pasco County Sheriff's Office, the Hillsborough County Sheriff's Office, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Friday 25 July 2014
“godfather” of Camp Pendleton Sentenced to Two Years for BriberyRead the Press Release
Dept. of Defense Supervisor Nate Cervantes Accepted
Over $100,000 in BribesA Department of Defense supervisor, the self-described “Godfather” of Camp Pendleton, was sentenced today to two years in prison for accepting over $100,000 in bribes from contractors who sought to win or retain government construction and service contracts at Camp Pendleton worth millions of dollars.
Natividad Lara “Nate” Cervantes pleaded guilty in January to bribery and conspiracy to commit bribery of a public official. At today’s hearing, U.S. District Judge Anthony J. Battaglia also ordered Cervantes, who is free on bond, to self-surrender by September 30, 2014, and to forfeit $106,964 in ill-gotten gains.
“Nate Cervantes used his considerable influence and popularity at Camp Pendleton to foster a culture of corruption among contractors at the military base,” said U.S. Attorney Laura Duffy. “This scandal has undermined public confidence in the fairness of the system. Hopefully, today’s sentence will restore some of that confidence. We will investigate and expose corruption wherever it occurs in the U. S. military.”
FBI Special Agent in Charge Daphne Hearn commented, “When a government official like Mr. Cervantes violates his oath to protect and serve the citizens of this nation, it undermines the public's trust. When that happens, the FBI will aggressively pursue people like Mr. Cervantes to root out corruption at all levels of government and restore that trust. This case like many of our investigations was initiated based upon a call from the public to the FBI and shows what can happen when the public joins with law enforcement to fight crime. The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE.”
“Today’s sentencing is a reminder that individuals who scheme to defraud the U.S. Government and violate the public’s trust will be brought to justice,” said Small Business Administration Inspector General Peggy E. Gustafson. “The actions of Natividad Cervantes and his conspirators grossly undermine the honest work being done every day by Federal employees and government contractors. I want to thank the U.S. Attorney's Office for its dedicated leadership and professionalism in pursuit of justice served today.”
Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service (DCIS) Western Field Office commented, “Cases such are this are not motivated by need, or other difficult personal circumstances; they are products of simple greed. We are committed to aggressively pursuing those who abuse the public trust and ultimately undermine the efforts of the Department of Defense to support our warfighters.”
“Failure to play by the rules will land you in prison,” said Erick Martinez, Special Agent in Charge of IRS Criminal Investigation. “Today’s sentencing supports IRS Criminal Investigation’s commitment to bring to justice to those individuals who seek to illegally enrich themselves through the improper awarding of government contracts.”
Bribery at Camp Pendleton
When he entered his guilty plea in January, Cervantes admitted using his position at Camp Pendleton to solicit bribes from construction companies seeking to do business on the base, including codefendant Hugo Hernandez Alonso’s company, Hugo Alonso, Inc. (HAI), and codefendant Bayani Yabut Abueg, Jr.’s company, MBR Associates, Inc. (MBRA). From about 2008 until March 2013, Cervantes served at Camp Pendleton as the Supervisor of the Construction and Service Contracts Inspection Branch, Facilities Support Contract Division. During that time Cervantes used his position supervising construction and service contracts to solicit Alonso and Abueg for bribes from their companies, HAI or MBRA. In return for helping to steer contracts to HAI and MBRA, Cervantes received cash payments from Alonso and Abueg and extensive free construction work on his personal condominium. Alonso, Abueg, and their respective companies were all sentenced last month.
As an example, Cervantes admitted that in about 2008 he agreed to accept a $25,000 bribe to assist Alonso and HAI in obtaining a $3.5 million government contract to install flooring at Camp Pendleton. In arranging for the bribe payment, Cervantes, through a third-party conduit, requested that Alonso “have the 25 package” (code for the $25,000 bribe) available on September 5, 2008. On that same day, Alonso provided the $25,000 to the third party conduit for delivery to Cervantes. Cervantes admitted that HAI paid Cervantes a total of at least $119,000 in bribes between 2008 and 2011.
The bribes to Cervantes were not limited to just HAI. Cervantes admitted to exchanging a bribe in 2011 related to the awarding of a $3 million contract at Camp Pendleton to Abueg’s company, MBRA. Further, Cervantes admitted that on March 26, 2013, he met with a cooperating witness, who agreed to pay Cervantes a $40,000 bribe in exchange for assistance in obtaining a new $4 million contract at Camp Pendleton. The bribe was to be structured over a number of payments. The first payment was scheduled for March 28, 2013, with the balance of the bribe to be paid after the contract was awarded.
On March 28, 2013, the cooperating witness met with Cervantes at a local business on Miramar Road in San Diego, California, to make the first payment that was discussed earlier in the week. During this meeting, Cervantes discussed, among other things, the payment schedule and the source of funds for the bribe payments. At the end of the meeting, the cooperating witness handed Cervantes an envelope containing $10,000 cash. At that point, FBI agents arrested Cervantes.
The public is encouraged to report possible public corruption criminal activity by calling the FBI’s public corruption/border corruption hotline at (877) NO-BRIBE or (877) 662-7423, or by calling the Department of Defense’s hotline at (800) 424-9098 or emailing [email protected].
DEFENDANT Case Number: 13cr1345-AJB Natividad Lara Cervantes Age: 64 San Diego, California CHARGESTitle 18, United States Code, Section 201(b)(2)—Bribery of public official
Maximum penalties: 15 years’ imprisonment, $250,000 fine, or three times the monetary equivalent of the bribeTitle 18, United States Code, Section 371 – Conspiracy to commit bribery of public official
INVESTIGATING AGENCY
Maximum penalties: 5 years’ imprisonment, $250,000 fine, or twice the gross amount of defendant’s pecuniary gain from the offenseFederal Bureau of Investigation
Naval Criminal Investigative Service
Internal Revenue Service, Criminal Investigation
Department of Defense Criminal Investigative Service
General Services Administration, Office of Inspector General
Small Business Administration, Office of Inspector General*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.
Wiggins Woman Sentenced for Social Security FraudRead the Press Release
Gulfport, Miss. – Glynell Cook Anderson, 61, of Wiggins, was sentenced to two years on probation with six months of electronic monitoring for theft of government funds, U.S. Attorney Gregory K. Davis announced today. She was also ordered to pay restitution to the Social Security Administration in the amount of $36,831.
Anderson previously pled guilty to providing repeated false statements to the Social Security Administration and receiving $36,831 in Social Security Supplemental Security Income payments to which she knew she was not entitled.
This case was investigated by the Social Security Administration - Office of Inspector General. It was prosecuted by Assistant U.S. Attorney Andrea Jones.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.
Westmoreland County Man Sentenced to 8 Years in Prison for Violating Child Exploitation LawsRead the Press Release
PITTSBURGH - A resident of New Kensington, Pa., has been sentenced in federal court to 97 months incarceration and 10 years supervised release on his conviction of violating child exploitation laws, United States Attorney David J. Hickton announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Mark Salego, 54, of New Kensington, Pa.
According to information presented to the court, in early 2013, Salego possessed and distributed material depicting the sexual exploitation minors.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Mark Salego.
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Timothy Heckaman, 53, of Bremen, Indiana was sentenced to 2 years probation and to pay $34,126.25 in restitution after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, from in or around March 2010 through September 2011, Heckaman applied for and received extended unemployment insurance benefits through the State of Indiana Department of Work Force Development (“IDWD”). Defendant submitted weekly vouchers to IDWD and intentionally answered “No” to the question asking if he was working when, in truth, he was employed during the specified week. This case was the result of an investigation by the Department of Labor and the Indiana Department of Work Force Development. This case was prosecuted by Assistant United States Attorney Barbara Brook.
- Gerardo Martinez-Quinonez, 22, of Lansing, Illinois was sentenced to time served after pleading guilty to the felony offense of use of a false social security number. According to documents filed in this case, in January 2014, in the Northern District of Indiana, with the intent to deceive, Martinez-Quinonez falsely represented a number to be the social security account number assigned to him by the Commissioner of Social Security. This case was the result of an investigation by the Immigration and Customs Enforcement. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
- Eric M. Gainer, 45, of Kewanna, Indiana was sentenced to 27 months imprisonment and 2 years supervised release after being found guilty by jury trial to the felony offense of making false statements during firearm acquisition. According to documents filed in this case, Gainer attempted to purchase a firearm on October 1, 2012 at firearms dealer. Gainer attempted to buy a Rossi 410/22 firearm despite being a convicted felon, despite being under a court restraining order and despite having a prior misdemeanor conviction for domestic violence. Gainer filled out an ATF Form 4473 and falsely stated that he did not have a prior felony conviction, falsely stating that he was not subject to a court order restraining him from harassing, stalking, or threatening his child or an intimate partner or child of such partner, and falsely denying that he had previously been convicted of a misdemeanor crime of violence (battery) involving his own daughter. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
- Leroy J. Clark, 22, of South Bend, Indiana was sentenced to 30 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on November 7, 2013, a car Clark was riding in was stopped by police. He had a handgun in his possession in the car. Clark had a previous felony conviction in the State of Indiana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
- Christopher R. Candler, 39, of South Bend, Indiana was sentenced to 15 months imprisonment and 5 years supervised release after pleading guilty to the felony offense of failure to register and update registration as a sex offender as required by the Sex Offender Registration and Notification Act. According to documents filed in this case, on May 29, 2001, Candler was convicted in New Jersey Superior Court, Law Division-Criminal, Morris County for the offense of Sexual Assault. As a result of this conviction, he was required to register as a sex offender in New Jersey at least until May 29, 2016. Candler last registered as a sex offender in New Jersey on July 11, 2012. In 2013, Candler moved to South Bend, Indiana and did not register in Indiana as a sex offender. This case was the result of an investigation by the United States Marshal Service. This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Darian Lyndon Brown, 36, of Merrillville, Indiana pled guilty to the felony offense of mail fraud. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has been set for 10/2/2014. This case is being prosecuted by Assistant United States Attorney Randy Stewart.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Chopper Loughran, 32, of Lake Station, Indiana was sentenced to 2 years’ probation, 12 months’ home confinement and to pay $12,942.70 in restitution after being found guilty by a jury to the felony offenses of worker’s compensation fraud, wire fraud, federal program fraud and making false statements. According to documents filed in this case, Loughran worked as a mail carrier with the U.S. Postal Service in Northwest Indiana for less than a year when she filed a claim stating that she injured her ankle while delivering mail. At trial, the evidence established that Loughran filed the claim shortly after being advised that her performance was not up to standard. Loughran knowingly submitted materially false statements and information on various forms connected with applications for compensation and payable benefits. This case was the result of an investigation by the United States Postal Service, the United States Department of Labor and the United States Department of Agriculture. This case was prosecuted by Assistant United States Attorney Toi Houston.
- Jose Arriaga, 45, of Merrillville, Indiana was sentenced to 70 months imprisonment, followed by 2 years of supervised release after pleading guilty to the felony offense of intent to distribute cocaine. According to documents filed in this case, in August 2013, Arriaga was arrested while attempting to sell 4 kilograms of cocaine to a Drug Enforcement Administration confidential informant and an additional 7 kilograms of cocaine and $24,000 in cash was recovered from Arriaga’s property in Merrillville, Indiana. This case was the result of an investigation by the Drug Enforcement Agency. This case was prosecuted by Assistant United States Attorney Dean Lanter.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Christopher Smith, 31, of Fort Wayne, Indiana was sentenced to 24 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, Fort Wayne Police Department personnel attempted to pull over the vehicle Smith was driving, but Smith failed to stop and led police on a high speed chase until his car crashed into a residence. During a search of the vehicle, officers found a firearm along with ammunition. At the time, Smith was on probation for his state offense of possession of cocaine. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Tina L. Nommay.
- Trevor R. Rodriguez, 23, of Fort Wayne, Indiana was sentenced to 57 months imprisonment and 2 years supervised release after pleading guilty to selling a firearm and ammunition to a known convicted felon. According to documents filed in this case, ATF was conducting a firearms investigation that resulted in contact with Rodriguez who agreed to sell them firearms on several occasions. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
- David Williams, 29 of Fort Wayne, Indiana, was sentenced to 1 year probation after pleading guilty to the felony offense of making a false statement on an ATF form 4473. According to documents filed in this case, Fort Wayne Police conducted a traffic stop and multiple weapons were recovered as a result of the stop. One of the guns recovered from the vehicle had been purchased by Williams who was not in the vehicle at the time of the stop. ATF agents confirmed that the firearm had been purchased by Williams. Williams would have filled out an ATF form 4473 in order to purchase the firearm. After interviewing Williams, he admitted to making a false statement on the form when he bought the gun, indicating he was the actual purchaser when he was not. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Tina L. Nommay.
UPS Driver Accused of Stealing Guns from the Shipper and Giving Firearms to Associate for Sale on StreetsRead the Press Release
RIVERSIDE, California – A United Parcel Service driver was arrested this afternoon on federal gun trafficking charges for allegedly stealing dozens of guns going through the shipping company’s Ontario hub and providing them to an associate who sold the weapons in underground transactions.
Curtis Hays, 36, of Rancho Cucamonga, was arrested without incident by special agents with the ATF. Hays is expected to be arraigned this afternoon in United States District Court.
The associate who allegedly sold some of the firearms – Dennis Dell White Jr., 35, of Moreno Valley – will be summoned to appear in federal court for an arraignment in the coming weeks.
The 16-count indictment, which was filed on July 23, alleges that Hays stole a series of packages containing guns that were supposed to be delivered to Turner’s Outdoorsman in Rancho Cucamonga. The indictment also accused Hays of stealing jewelry and mobile phones that were supposed to be delivered to other retailers, and this merchandise also was allegedly given to White.
Hays allegedly provided the firearms to White, who illegally sold the weapons to other individuals, and some of the guns then were sold to others. The firearms included 12-gauge shotguns and .45-caliber handguns.
Hays and White are charged with conspiracy; six counts of theft of firearms; six counts of receipt and possession of stolen firearms; and two counts of theft, receipt, and possession of good in interstate commerce.
White is additionally charged with being a felon in possession of firearms and ammunition.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The conspiracy count carries a statutory maximum penalty of five years in federal prison. The weapons charges each carry a potential penalty of 10 years in prison. The stolen goods charges each carry a maximum possible penalty of five years in prison. And, if convicted of being a felon in possession of firearms and ammunition, White could face up to an additional 10 years in prison.
The investigation into the stolen firearms was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Ontario Police Department.
Release No. 14-097
U.S. Attorney’s Office Settles Food Stamp Fraud Cases with 4 Mini Mart Stores for over $100,000Read the Press Release
St. Thomas, USVI – United States Attorney Ronald W. Sharpe announced today that the United States has entered into civil settlement agreements with four Virgin Islands convenience stores to resolve allegations that the stores unlawfully traded food stamp benefits for cash. The settlement requires the four stores to pay the United States in excess of $100,000, and be permanently debarred from participating in the Food Stamp Program.
“Food stamp fraud hurts children and the elderly who rely on these monthly allowances for their food,” U.S. Attorney Sharpe said. “When a substantial portion of these benefits are used to pay the retailers instead of feed these vulnerable individuals, the entire community suffers.”
The four convenience stores involved in the settlements are: Lower Love Service Station in Frederiksted on St. Croix; and Broadway Food Mart in the Fort Mylner Shopping Center, In and Out Mini Mart in Frydendahl, and Max Mart in Nisky Center on St. Thomas.
The Food Stamp Program, now known as the Supplemental Nutrition Assistance Program (SNAP), is administered in the Virgin Islands by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA) and the Virgin Islands Department of Human Services. The program provides funds to low-income individuals to allow them to purchase more nutritious foods. Eligible individuals receive an electronic benefit transfer (EBT) card, which operates like a debit card. Recipients use the EBT card to purchase approved food items from participating retailers.
U.S. Attorney Sharpe said that the four settlement agreements are part of a broader effort by the U.S. Attorney’s Office to address food stamp fraud in the territory. “We are putting retailers who trade food stamp benefits for cash on notice that federal authorities are on their trail,” U.S. Attorney Sharpe said. “Retailers who engage in food stamp fraud are subject to both civil monetary penalties and criminal penalties, including jail time.”
USDA is moving aggressively to control food stamp trafficking by using SNAP purchase data to identify suspicious transaction patterns, conducting undercover investigations, and collaborating with other investigative agencies, including the U.S. Attorney’s Office and local law enforcement.
SNAP retailers and recipients are reminded that only eligible food items can be exchanged for EBT benefits, and that it is illegal to exchange EBT benefits for cash or non-food items such as tobacco, alcohol, and lottery tickets.
For more information about the SNAP program or to report SNAP fraud, please go to www.fns.usda.gov. Fraud complaints may also be filed with the U.S. Attorney’s Office at (340) 774-5757.
Twin Falls Man Sentenced for Money Laundering Related to the Sale of SpiceRead the Press Release
POCATELLO - Allen W. Nagel, 45, of Twin Falls, Idaho, was sentenced today to five years of probation, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Nagel to pay a $500 fine and forfeit numerous pieces of property in the Magic Valley. Nagel pleaded guilty to the charge on June 26, 2013.
According to the plea agreement, between March 1, 2011, and October 1, 2011, the defendant owned and operated A & J Distribution with other individuals including co-defendant Josh Becker. During this time period, in various states including Idaho, A & J Distribution distributed for further sale brands of smokeable material commonly referred to as spice under the “Hayze” label. This material contained a Schedule I controlled substance analogue. Nagel knew this material was for human consumption.
Becker and Nagel received money from the sale of the material and engaged in monetary transactions using the funds derived from the sales. The transactions, some in excess of $10,000, included transfers, withdrawals, and deposits through a Twin Falls bank. According to the plea agreement, the total funds involved in the monetary transactions derived from the specific unlawful activity are not more than $400,000.
This was part of joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), is led by the Drug Enforcement Administration in conjunction with Twin Falls City Police Department, Twin Falls County Sheriff's Office, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Patrol, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Idaho State Police, Ada County Sheriff's Office, Nampa City Police Department, Meridian City Police Department, Gooding County Sheriff's Office, Cassia County Sheriff's Office, and Minidoka County Sheriff's Office.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Three Sentenced for Money Laundering and Drug Trafficking CrimesRead the Press Release
CORPUS CHRISTI, Texas - Three Brownsville residents have been sentenced to federal prison for their roles in a drug trafficking and money laundering conspiracy, announced United States Attorney Kenneth Magidson. Roberto Ruiz aka Bobby, 38, Rodolfo Ruiz Jr. aka Pollo, 26, and Jose Luis Guerrero aka Pana, 41, previously pleaded guilty to possession with intent to distribute more than five kilograms of cocaine and conspiring to launder the drug proceeds.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Roberto Ruiz to 140 months, while Rodolfo Ruiz and Guerrero received respective sentences of 100 and 160 months. All will also have to serve five years of supervised release following completion of their prison terms. As part of his plea agreement, Robero Ruiz agreed to forfeit his interest in his residence in Brownsville.
In assessing her sentence, Judge Ramos noted the length of the conspiracy, which was Jan. 1, 2005, to Aug. 28, 2013. She also noted that Roberto Ruiz had a leadership role in the organization. Guerrero, she noted, had an extensive criminal history.
Also charged and convicted were Peter Morales aka Pirucha, 31, of Houston, and Leonel Mendoza Diaz aka Masacuata, 39, of Brownsville. They pleaded guilty to the drug conspiracy and were previously sentenced to 135 months in prison. Ricardo Olivas aka Bugs, 42, and Mario de la Fuente, 37, both of Brownsville, also pleaded guilty to their involvement in the conspiracies and will be sentenced at a later date.
All defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Customs and Border Protection, Texas Department of Public Safety, Cameron County District Attorney’s Office, sheriff’s offices in Cameron and Willacy Counties, as well as police departments in Brownsville, Port Isabel, Harlingen and San Benito. The case is being prosecuted by Assistant United States Attorney Michael Hess.
Three Charged in Alleged Kidnapping HoaxRead the Press Release
Urbana, Ill. – Two men and a woman, arrested this morning, have been charged by criminal complaint with concealing material fact related to an alleged kidnapping hoax last month, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Monica Adriana Zacatlan Ramirez, 19, of the 700 block of E. Michigan Ave., Urbana, Ill.; Eduardo Guerrero Cortez, 25, of Texas; and Jarbey Emerson Reyes Villalobos, 18, of Raintree Drive, Champaign, Ill., each made their initial court appearances this afternoon before U.S. Magistrate Judge David G. Bernthal in federal court in Urbana.
Cortez and Villalobos remain in the custody of the U.S. Marshals Service as a result of a detainer placed by U.S. Immigration and Customs Enforcement Homeland Security Investigations. Judge Bernthal ordered that Ramirez also remain detained in the custody of the U.S. Marshals Service.The affidavit, filed in support of the complaint, alleges that after nearly one month of investigation into the alleged kidnapping of Ramirez, on June 11, 2014, from Market Place Mall in Champaign, Ramirez, in fact, designed a scheme with Cortez and Villalobos to perpetrate a hoax kidnapping. The affidavit alleges that the hoax was designed to conceal Ramirez’s willingness and voluntary consent to be with Cortez and to hide Ramirez’s consent from her family and current boyfriend.
The charges are the result of investigation by the Champaign Police Department; the Federal Bureau of Investigation, Springfield and Houston Divisions; the Champaign County State’s Attorney’s Office; and, the U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson.
If convicted, the offense carries a statutory penalty of up to five years in prison and fines of up to $250,000.
Members of the public are reminded that a complaint is merely an accusation; the defendants are presumed innocent unless proven guilty.
Tampa Woman Sentenced to Prison for Leading Marriage Fraud RingRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Cassandra Hamilton (55, Tampa) to 15 months in federal prison for engaging in a conspiracy to commit marriage fraud. Hamilton pleaded guilty on April 15, 2014.
According to court documents, Hamilton engaged in a marriage fraud conspiracy spanning several years, and in excess of ten marriages. Hamilton arranged marriages between U.S. and Jamaican citizens for the purpose of enabling the Jamaican citizens to obtain residency and citizenship. Hamilton was paid for her involvement in arranging the marriages.
"Hamilton conspired to circumvent and exploit our nation's immigration laws for personal financial gain. Her crimes have also resulted in Jamaican nationals who are now permanently barred from obtaining lawful permanent status in the United States." said Susan L. McCormick, special agent in charge for U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Tampa. "HSI will continue to work closely with our partner agencies, including United States Citizenship and Immigration Services (USCIS), to protect the integrity of this country's immigration system."
"As an agency of the U.S. Department of Homeland Security, USCIS has zero tolerance for marriage fraud," said Ruth Dorochoff, USCIS Tampa District Director. "Justice has been served with this sentencing, and we remain vigilant in detecting and prosecuting any immigration fraud."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Citizenship and Immigration Services. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Springfield Man Sentenced to 11 Years for Attempting to Induce Two Children to Engage in Illegal Sexual ActivitiesRead the Press Release
ALEXANDRIA, Va. – Kenneth A. Brauckmann, 51, of Springfield, Virginia, was sentenced today to 132 months in prison for attempting to coerce and entice two children to engage in illegal sexual activities.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
Brauckmann pleaded guilty on May 13, 2014. According to court documents, in November 2013, Brauckmann used a social networking website to contact a user he believed to be a 14-year-old girl, who was in fact an undercover Fairfax County police detective. Through online and text messages with the user, Brauckmann made arrangements to engage in sexual activities with her and her 13-year-old friend in his car. Brauckmann repeatedly requested nude photographs of the two girls. On Nov. 4, 2013, Brauckmann drove to a movie theater in Fairfax County, where he believed the two girls would meet him, and was arrested.
In court documents, Brauckmann admitted that he had engaged in similar illicit behavior with actual female children from whom he requested sexual encounters and nude photographs, and that, from January 2005 through his time of arrest, he engaged in multiple sexual conversations with others claiming to be girls between 13 and 16 years old.
This case was investigated by the Fairfax County Police Department and ICE-HSI. Assistant U.S. Attorney Maya D. Song prosecuted the case.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-166.
Sentencing for July 17 - 24, 2014Read the Press Release
Jack Steven Taber, 61, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on July 24, 2014, for bank robbery. Taber was arrested in Casper, Wyoming. He received 37 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Casper Police Department and the Federal Bureau of Investigation.
Luis Alberto Govea-Vargas, 29, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on July 24, 2014, for illegal re-entry of a previously deported alien into the United States. Govea-Vargas was arrested in Green River, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Nathan Paul Davenport, 34, of Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 22, 2014, for theft of ATM machines and aiding and abetting. Davenport was arrested in Casper, Wyoming. He received 14 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $113,820.00. This case was investigated by the Douglas and Casper Police Departments, the Wyoming Highway Patrol and the Federal Bureau of Investigation.
Stefani Colleen Ruland, 40, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 17, 2014, for possession of stolen mail. Ruland was arrested in Cody, Wyoming. She received 21 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $19,213.33. This case was investigated by the Cody Police Department and the U.S. Postal Service.
Irving Gonzalez-Bernal, 24, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 17, 2014, for illegal re-entry of a previously deported alien into the United States. Gonzalez-Bernal was arrested in Casper, Wyoming. He received 30 months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.