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12 September 2014
United States Seeks Civil Contempt Against Bayer Corporation for Failure to Substantiate Promotional Claims for Phillips' Colon HealthRead the Press Release
WASHINGTON—The Department of Justice announced today that it filed a motion to show cause why Bayer Corporation should not be held in civil contempt for violating a court order in the U.S. District Court for the District of New Jersey. The court order, entered in 2007 in United States v. Bayer Corporation, prohibits Bayer from making unsubstantiated claims for any dietary supplement it promotes or sells. The government alleges in today’s motion that Bayer promotes one of its products, Phillips’ Colon Health, using claims about the product’s purported benefits without having evidence to substantiate those claims.
The court order prohibits Bayer from making any claim about the performance or efficacy of any dietary supplement, multivitamin or weight-control product unless, at the time Bayer makes the claim, the company possesses “competent and reliable scientific evidence” to support the claim. In its motion, the United States alleges that Bayer expressly claims Phillips’ Colon Health can “defend against” occasional constipation, diarrhea, and gas and bloating, and impliedly claims that Phillips’ Colon Health prevents, treats and cures constipation, diarrhea, and gas and bloating, even though the company lacks competent and reliable scientific evidence for those claims.
“Bayer is required to abide by a longstanding court order to back up claims it makes about the products it sells,” said Assistant Attorney General Stuart F. Delery for the department’s Civil Division. “The Department of Justice will not tolerate companies that seek to gain an unfair advantage over their competitors by promoting to consumers unsubstantiated claims about the health benefits of their products.”
In its motion, the United States describes Bayer’s multimillion dollar nationwide marketing campaign for Phillips’ Colon Health, which includes print advertisements and television commercials featuring “The Colon Lady,” in addition to claims on the product’s packaging. The motion further alleges that consumers have paid hundreds of millions of dollars for Phillips’ Colon Health, even though Bayer lacks the evidence to support the claims of the purported benefits of this product.
The Consumer Protection Branch of the Civil Division and the U.S. Attorney’s Office for the District of New Jersey filed the motion for contempt with the assistance of the Federal Trade Commission (FTC). The matter is filed as United States v. Bayer Corporation, No. 07-0001, in the District of New Jersey.
In 2007, the United States filed a civil complaint against Bayer alleging that Bayer marketed its One-A-Day WeightSmart multivitamin and dietary supplement with unsubstantiated claims that, among other things, One-A-Day WeightSmart helped prevent some of the weight gain associated with a decline in metabolism in users over the age of 30. The complaint alleged that those unsubstantiated claims violated an order issued in 1991 by the FTC against Bayer’s predecessor, Miles Inc., that required all claims about the benefits of One-A-Day brand vitamins to be substantiated by competent and reliable scientific evidence.
In order to resolve the complaint’s allegations, in 2007, Bayer agreed to pay a $3.2 million civil penalty and agreed that it would not make unsubstantiated representations regarding the benefits, performance, efficacy, safety or side effects of any dietary supplement, multivitamin or weight-control product. In 2007, the U.S. District Court for the District of New Jersey entered an order resolving the complaint’s allegations and prohibiting Bayer from making unsubstantiated claims about its products.
Assistant Attorney General Delery commended the efforts of the FTC to investigate Bayer’s compliance with the 2007 court order and for referring this latest matter for enforcement. This case is being handled by the Civil Division’s Consumer Protection Branch.
This motion contains a set of allegations. If this motion is litigated, the government would need to prove the allegations by clear and convincing evidence.
14-975
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Motion in Bayer 9-12-14
United States Attorney General Recognizes Federal Prosecutor in MississippiRead the Press Release
WASHINGTON – Mike Hurst, an Assistant United States Attorney in the Southern District of Mississippi, was recently recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony held this week in Washington D.C.
The Southern District of Mississippi was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building on Wednesday, September 10, 2014.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Mr. Hurst was awarded the Director’s Award for Superior Performance as a Criminal AUSA for the outstanding prosecution of the largest and most complex mortgage fraud Ponzi scheme in the history of the State of Mississippi, United States v. Charles H. Evans, Jr. and Jon Christopher Evans. AUSA Hurst’s efforts helped result in the defendants’ guilty pleas to money laundering and bank fraud; sentences of 14 years for Jon Christopher Evans and 20 years for Charles H. Evans, Jr.; a forfeited money judgment in the amount of $18,594,221.58; a loss calculation for sentencing purposes in the amount of $26,660,602.78; and restitution ordered to numerous banks and title insurance companies totaling $25,441,938.48. The case encompassed over $80 million dollars worth of loans involving almost 30 shell or fictitious corporations created by the defendants to launder their illegal proceeds, adversely affecting almost 50 financial institutions, local governments and hundreds of parcels of land in Mississippi and Texas. This prosecution was particularly significant given the sheer size, scope, length, and complexity of the scheme, as well as the difficult legal and logistical issues relating to calculating loss amounts for sentencing and restitution.
“We are pleased that the U.S. Department of Justice has recognized Assistant U.S. Attorney Hurst for his outstanding contribution to the Department and its mission,” said U.S. Attorney Davis.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.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:
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Union County Resident Pleads Guilty to Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn September 11, 2014, Rusty J. Smith, 35, of Cobden, Illinois, pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that Smith was involved with co-defendant Ruth Diane Wiseman and others in the manufacture of methamphetamine. Wiseman and others supplied pseudoephedrine pills to Smith to use to manufacture methamphetamine. The offense occurred between 2012 and March 2014, in Union, Williamson, and Jackson Counties. The methamphetamine offense carries a penalty of up to 20 years in federal prison, to be followed by 3 years of supervised release, and a fine of $1,000,000. Smith is currently being held without bond pending a December 16, 2014, sentencing hearing. Wiseman has previously pled guilty and is awaiting sentencing. Two co-defendants have pled not guilty and are awaiting a jury trial.
The ongoing investigation is being conducted by the Union County Sheriff’s Office, Jackson County Sheriff’s Office, Illinois State Police, Williamson County Sheriff’s Office, Marion Police Department, Carbondale Police Department, Illinois State Police Methamphetamine Response Team and Drug Enforcement Administration. The 19th Judicial District Drug Task Force (Tennessee) assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
U.S. Attorney Machen Announces Formation of Conviction Integrity UnitInitiative Follows Comprehensive Review of Older CasesRead the Press Release
WASHINGTON – U.S. Attorney Ronald C. Machen Jr. today announced the creation of a Conviction Integrity Unit in the U.S. Attorney’s Office for the District of Columbia, promising a vigorous effort to identify and investigate cases that resulted in wrongful convictions. The unit also will make recommendations about ways to improve training, investigations, and prosecution practices to ensure the integrity of future convictions.
The unit will review cases in which defendants convicted of violent felonies can proffer new evidence that merits reconsideration, including those in which DNA testing of biological material may establish actual innocence. Cases will be reviewed by experienced prosecutors and investigators, who then will determine if further action is needed.
“As prosecutors, our goal is not to win convictions, but to do justice,” said U.S. Attorney Machen. “Although wrongful convictions remain a rare phenomenon, their consequences are tragic – for the defendants involved, for the victims of the crimes that remain unsolved, and for the community we work every day to protect. This new unit will work to uncover historical injustices and to make sure that we are doing everything in our power to prevent such tragedies in the future.”
This is the first Conviction Integrity Unit created within a U.S. Attorney’s Office. A number of prosecutors’ offices nationwide have established such units in recent years, including the Manhattan District Attorney’s Office and the Dallas County District Attorney’s Office.
Today’s announcement follows a four-year review by the U.S. Attorney’s Office of more than 2,000 files involving FBI analysis of hair or fiber evidence. That review was done in the wake of the exoneration of Donald Gates, who was convicted in 1982 of a rape and murder in part on the basis of testimony involving hair evidence. DNA testing – which was not available at the time of Mr. Gates’s trial -- proved in 2009 that he was not the perpetrator.
Over the past several years, the U.S. Attorney’s Office has devoted thousands of hours – including the hiring and assignment of additional staff – to link FBI files documenting hair and fiber analyses to any actual criminal prosecutions that resulted from the investigative work.
More than 100 cases, all prior to 2000, were identified in which convictions were obtained by guilty plea or at trial. A task force of veteran prosecutors then reviewed these matters, and identified one case that recently led to the exoneration of Kevin Martin, who was convicted in 1984 of taking part in a rape-murder. The in-depth reviews of these decades-old cases required enormous effort. The task force consisted of 30 Assistant U.S. Attorneys, who carefully reviewed case-related materials from the courts and law enforcement agencies to assess whether the use of hair or fiber evidence was material to the conviction. The office is sharing results of its work with defense counsel, as well as the Mid-Atlantic Innocence Project.
In addition to Mr. Gates and Mr. Martin, the U.S. Attorney’s Office joined in a request for a certificate of innocence for a man who was convicted in 1981 of rape, armed robbery, and other charges; DNA evidence, which was not available at the time of trial, established that he was not the attacker. The U.S. Attorney’s Office also agreed to vacate the conviction of a man who was convicted in 1981 of felony murder while armed and armed robbery, based largely on testimony involving hairs found on a stocking mask that was located near the scene of the crime. DNA evidence conclusively showed that the hair found in the stocking cap did not belong to the defendant. In that case, the U.S. Attorney’s Office also consented to vacate the conviction of a co-defendant whose conviction was materially affected by the hair found in the stocking cap.
Throughout the four-year review, the U.S. Attorney’s Office reached out to leaders of the local defense bar, reinforcing its commitment to working with defense counsel on cases where previously unavailable DNA testing methodologies might produce profiles from existing biological crime scene evidence that could support a viable claim of innocence.
Now, in designing the Conviction Integrity Unit, the U.S. Attorney’s Office is seeking to establish a program that is both backward and forward-looking, combining a review of existing convictions with an analysis of data to determine ways to improve training, investigation, and practices.
The unit will be part of the office’s Special Proceedings Division, which handles all post-conviction litigation in both the U.S. District Court for the District of Columbia and the Superior Court of the District of Columbia. The unit’s work will be reviewed by a Conviction Integrity Committee, which also will focus on developing better prosecution practices and training.
The review process will include an examination of all materials relating to a defendant’s original conviction, as well as an investigation into the integrity of new evidence proffered by the defendant. The review will recommend whether relief is warranted, such as vacation of the conviction and the issuance of a certificate of actual innocence. Final recommendations are to be submitted to the Conviction Integrity Committee and the U.S. Attorney for approval.
In cases leading to exoneration, the U.S. Attorney’s Office will work to identify the actual perpetrators of the crimes at issue, particularly when DNA evidence is available.
The Special Proceedings Division most commonly responds to motions alleging ineffective assistance of counsel, prosecutorial misconduct, and newly discovered evidence. The Division also responds to motions for release filed by defendants found not guilty by reason of insanity, habeas petitions challenging the actions of the U.S. Parole Commission or the Bureau of Prisons, motions to seal arrest records, and post-sentence motions filed under the Innocence Protection Act and the Sex Offender Registration Act.
14-201Two Men, Including Former Car Salesman at Prominent Los Angeles Dealership, Charged with Conspiring to Roll Back Odometers in Large-Scale Scheme That Defrauded Car BuyersRead the Press Release
A former salesman at a prominent Los Angeles car dealership and another Southern California man were charged with odometer tampering, the Justice Department announced today.
Jeffrey Levy, 62, and Shamai Salpeter, 65, both of Woodland Hills, California, were charged in separate criminal informations with conspiracy to commit odometer tampering.
“ Victims of odometer fraud lose thousands of dollars on what can turn out to be unreliable and potentially dangerous vehicles ,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “To help ensure that Americans can have confidence in the cars they buy, we will continue to prosecute car salesmen and others who violate federal law by tampering with a vehicle’s odometer.”
Levy was a salesman at Galpin Ford in North Hills, California. Levy referred customers and friends to his co-conspirator, Salpeter, who rolled back odometers in the driveway of his Woodland Hills residence. Levy is alleged to have known that some of these people had exceeded the maximum allowed mileage under the terms of their leases and wished to avoid fees and penalties. According to the charges, Levy also knew that other customers wanted to lower the mileage on their odometers to make their vehicles more valuable when they traded in the vehicles. After Salpeter altered the odometers, Levy’s customers returned or traded in their vehicles with falsified lower mileage readings. Levy then accepted the vehicles without alerting Galpin Ford that the odometer readings were false, thus defrauding future owners of the vehicles. Galpin Ford cooperated with the government’s investigation.
Salpeter altered odometers for friends, acquaintances and strangers, including customers referred by Levy. Salpeter charged between $100 and $400 per odometer and used electronic tools to set the odometer to the mileage requested by his customer.
This case was investigated by the National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA) and California’s Department of Motor Vehicles. This case is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch.
NHTSA has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
An update on the status of the case is available at: http://www.justice.gov/civil/cpb/cpb_currentcases.html#_Odom More information on odometer fraud is available at: http://www.nhtsa.gov/Odometer-Fraud , and tips on detecting and avoiding odometer fraud are available at: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf .
Todd Adam Rigney Sentenced to 16 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On Sept. 8, 2014, Todd Adam Rigney, 44, of Morristown, Tenn., was sentenced to serve 200 months in prison by the Honorable Ronnie Greer, U.S. District Judge.
Upon his release from prison, Rigney will be under the supervision of the U.S. Probation Office for the remainder of his life. He will also be subject to numerous special conditions of release which restrict his access to children and the internet. He has remained in custody since January 2014.
Rigney pleaded guilty in May 2014 to a federal grand jury indictment charging him with the distribution, receipt and possession of child pornography. He received and distributed the child pornography from his home in Morristown, Tenn.
The indictment and subsequent conviction of Rigney was the result of an investigation conducted by the Morristown Police Department and Knoxville Police Department Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Helen Smith represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
St. Louis Man Sentenced for Robbery of Chili's Bar and GrillRead the Press Release
Follow @SDILNewsChristopher Ford, 29, of St. Louis, Missouri, was sentenced to a 57 month term in federal prison, to be followed by a three year term of supervised release, and ordered to pay $1,883.30 in restitution at his sentencing, today, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced. Ford had been charged with Interference with Commerce by Violence, a violation of the Hobbs Act, in connection with the robbery of Chili’s Bar and Grill in Fairview Heights on August 1, 2013. Ford, who has been in custody since his arrest on August 1, 2013, will remain in custody until he serves his prison sentence.
“While I am pleased to note that armed robberies of businesses have declined, I am still concerned that, as shown by the recent Circle K robbery near Belleville, the bad guys are not getting the message. Again, I want these persons to know that they will be caught and they will do federal time far from their homes and families.” said United States Attorney Wigginton. “My federal initiative will not cease until this kind of crime is eliminated. All of our citizens should feel safe in going to restaurants, convenience stores and gas stations. To ensure this, I will continue to use the Hobbs Act and every tool that I have to investigate and prosecute those who rob businesses engaging in interstate commerce.”
At the time of Ford’s guilty plea, court records showed that on August 1, 2013, at approximately 9:24 p.m., Ford and his co-defendants entered Chili’s Restaurant (in Fairview Heights) to commit a robbery. Ford and one of his co-defendants were masked and armed with BB guns which resembled genuine semi-automatic firearms. The third co-defendant was unarmed and unmasked. In total, over twenty customers and employees were present in the restaurant when the defendants entered a side door to commit the robbery. The manager was ordered at gunpoint by Ford to open the safe, which contained a cash drawer and box. The two co-defendants maintained watch over customers and employees (some of whom were ordered to the back of the restaurant and the ground) while monies were being taken. Some customers fled the restaurant during the robbery. An alert customer was able to record the Missouri license plate number of the getaway car, and to provide it to police during a 911 call.
Police officers quickly located the getaway car, and, after a chase, were able to catch it when it drove into the City of St. Louis and ran into a dead end street. The defendants attempted to flee the police on foot, but were quickly apprehended.
The case was investigated by the Fairview Heights Police Department and was prosecuted by Assistant United States Attorney Suzanne M. Garrison for prosecution.
San Antonio Man Sentenced to Federal Prison for Murder Plot in Connection with 2013 Fort Sam Houston Shooting IncidentRead the Press Release
In San Antonio today, 52-year-old Alvin Roundtree was sentenced to the maximum 20 years in federal prison for plotting to kill his intimate partner announced United States Attorney Robert Pitman, FBI Special Agent in Charge Christopher H. Combs, San Antonio Division, and United States Marshal Robert Almonte.
Chief United States District Judge Fred Biery also ordered that Roundtree be placed under supervised release for a period of three years after completing his prison term and forfeit his military pension. Judge Biery continued the sentencing of Roundtree’s nephew and co-defendant, 29-year-old Leonard Roundtree, III, of Richardson, TX. No new sentencing date has been scheduled.
In April, a jury convicted Leonard Roundtree of one count of conspiracy to commit murder. In March, Alvin Roundtree pleaded guilty to one count of assaulting an officer or employee of the United States with a deadly weapon. Evidence presented in open court revealed that on June 10, 2013, Alvin Roundtree shot and wounded his intimate partner with a .45 caliber handgun inside the Medical Training Facility located on Fort Sam Houston Army Post. The victim, who suffered a total of seven gunshot wounds, was immediately taken into surgery and survived the incident. Authorities subsequently apprehended Roundtree while still on Fort Sam Houston and recovered the firearm. Recorded phone calls between the defendants revealed that the two conspired to hire someone to kill the victim to prevent her testimony in court. The evidence revealed that Leonard Roundtree agreed to, and in fact did, deliver information between his uncle and the hitman ultimately agreeing to pay $10,000 upon proof the murder.
Assistant United States Attorneys Bettina Richardson and Joey Contreras prosecuted this case on behalf of the Government.
SORNA Offender Sentenced to 48 Months in Federal PrisonRead the Press Release
ABILENE, Texas — Troy E. Powell, 46, most recently of Tuscola, Texas, was sentenced yesterday by U.S. District Judge Jorge A. Solis to 48 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Following a bench trial before Judge Solis in April 2014, Powell was convicted on an indictment charging one count of failure to register as a sex offender.
The government presented evidence that law enforcement learned in late 2013 that Powell, a sex offender from Illinois, had moved to the Abilene, Texas area, and that he may be in violation of his obligation under federal law to register as a sex offender. The investigation validated that fact and revealed that Powell had located and purchased a piece of property with a home on it in Tuscola, Texas, where he had been living since December 26, 2013.
The government presented further evidence that Powell left his residence in Illinois in November 2013 and travelled in interstate commerce to the Abilene, Texas, area. Powell never registered in Texas as a sex offender, as required by the Sex Offender Registration and Notification Act (SORNA), as he had been convicted of a sex offense in Fremont County, Colorado, and sentenced in September 1992.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the U.S. Marshals Service, the Abilene Police Department, the Texas Department of Public Safety and the Sterling, Illinois, Police Department. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
Rochester Man Sentenced for Possessing Ammunition as a Convicted FelonRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Frederick Stokes, 36, of Rochester, NY, who was convicted of possessing ammunition while being a convicted felon, was sentenced to 63 months in prison by U.S. District Court Judge David G. Larimer.
Assistant U.S. Attorneys Craig Gestring and Charles E. Moynihan, who handled the case, stated that Stokes was previously convicted in 2002 in Monroe County of Forgery in the Second Degree and in 1999 in Oneida County of Assault in the Second Degree. As a result of these previous convictions, the defendant was prohibited from possessing any firearms or ammunition.
On April 12, 2013, members of the Rochester Police Department Tactical Unit arrested Stokes in the area of Ringle Street and Post Avenue in Rochester. Officers were looking for the defendant in connection with an unrelated investigation. When officers attempted to take Stokes into custody, he ran from them which resulted in a foot chase. During the chase, the defendant discarded a dark, denim jacket in the area of 93 Post Avenue. Officers arrested Stokes in front of 95 Post Avenue and recovered the jacket nearby. They found seven rounds of .45 caliber ammunition, which were placed inside of a magazine for a Sturm Ruger .45 caliber semiautomatic pistol, inside one of the jacket pockets.
The sentencing is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of James S. Higgins, Acting Special Agent in Charge, New York Field Office, and the Rochester Police Department, under the direction Chief Michael Ciminelli.Registered Sex Offender Sentenced to 235 Months in Prison for Attempting to Entice A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Jeffrey S. Katz, Chief, Boynton Beach Police Department (BBPD), announce that Paul David Culbreth, 52, of Loxahatchee, was sentenced by U.S. District Judge Kenneth L. Ryskamp to 235 months in prison, a life term of supervised release and will have to continue to register as a sex offender, for enticing a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b).
Culbreth pled guilty to enticing a minor to engage in sexual activity on May 15, 2014. According to court records, Culbreth sent numerous sexually explicit messages via a web-based social media application to an undercover officer who posed as a 15 year old boy. Culbreth then attempted to meet the minor to engage in illegal sexual activity on New Year’s Eve. Culbreth was arrested by Special Agents from ICE-HSI after he drove to a location where he believed he would pick up the 15 year old boy. Culbreth was found with lubricant and condoms in his vehicle and is a registered sex offender in Palm Beach County.
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.
Mr. Ferrer and Mr. Aronberg commended the investigative and cooperative efforts of ICE-HSI, BBPD and the South Florida Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney and Assistant State Attorney Gregory Schiller.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ray Dwight Sluss Sentenced to 17 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On Sept. 11, 2014, Ray Dwight Sluss, 49, of Johnson City, Tenn., was sentenced to serve 210 months in prison by the Honorable Leon Jordan, Senior U.S. District Judge. Sluss pleaded guilty in February 2014 to a federal indictment charging him with the receipt and possession of child pornography.
Upon his release from prison, Sluss will remain on federal supervised release for the remainder of his life. He is also subject to numerous special conditions of release which restrict his access to children and the internet. He has remained in custody since July 2013.
Sluss, purchased polygraph counter-measures while he was on supervised release by the Tennessee Board of Probation and Parole for a previous offense. During a search of his home, state court probation officers and other law enforcement officers found more than 18,000 images of child sexual abuse on external hard drives which were concealed in his home. He physically attacked some of the law enforcement officers.
The indictment and subsequent conviction of Sluss was the result of an investigation conducted by the Federal Bureau of Investigation, Tennessee Board of Probation and Parole, and Washington County Sheriff's Office. Assistant United States Attorney Helen Smith represented the United States in the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Port Saint Lucie Return Preparer Sentenced for Tax Fraud and Identity Theft SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Stevens Nore, 33, of Port Saint Lucie, was sentenced today before U.S. District Judge Kenneth A. Marra to 84 months in prison, followed by three years of supervised release and ordered to pay $2,761,397 in restitution.
Nore was previously convicted by a jury of 30 counts, including 21 counts of preparing false tax returns, in violation of Title 26, United States Code, Section 7206(2), four counts of filing false individual tax returns, in violation of Title 26, United States Code, Section 7206(1), three counts of theft of public money, in violation of Title 18, United States Code, Section 641, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to records filed in this case and statements made in court, from June 11, 2009 through April 2012, Nore owned and operated Fraternity Tax and Services, a tax return preparation business located in Fort Pierce, Florida. Nore prepared and submitted Individual Tax Returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2009 to 2011. Nore also filed false tax returns for 2010 through 2013 by falsely stating the amount of gross receipts and sales on Schedule C forms. Nore stole three tax refunds totaling $26,349.30 to which he was not entitled, and used the identity of two individuals without their permission.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Russell R. Killinger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pharmacist Convicted on Drug Distribution ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistDefendant faces up to 44 years incarceration, will forfeit pharmacy license
CLARKSBURG, WEST VIRGINIA – A West Virginia pharmacist has been convicted on charges that he dispensed prescription painkillers outside the scope of his professional practice.
United States Attorney William J. Ihlenfeld, II announced that Mario BLOUNT, 51 of Bridgeport, W. Va., entered guilty pleas today to the felony offenses of “Conspiracy to Distribute Schedule II Controlled Substances”, “Distribution of Oxymorphone”, and “False or Fraudulent Material Omissions.”
BLOUNT, who was employed by Best Care Pharmacy at the time of the crimes, admitted that he conspired with Angela Davis and April Davis between 2011 and 2014 to distribute prescription painkillers for non-legitimate medical purposes. BLOUNT also admitted that he failed to report the filling of a prescription for oxymorphone for Angela Davis in June of 2013, and that he illegally distributed oxymorphone pills to her in September of 2013.
According to evidence offered at the plea hearing, BLOUNT’s pharmacy practice was outside the course of professional practice, leading to duplicate and excessive quantities of controlled substances being supplied. BLOUNT also supplied controlled substances that were contraindicated, and he accepted a prescription that he knew to be fraudulent for a person that he knew to be deceased. The decedent for whom the prescription was written was the late son of Angela Davis.
The investigation into BLOUNT began when it was discovered that he filled a significant number of prescriptions for patients of Dr. Edita Milan, a Bridgeport physician who is under Federal indictment on charges similar to BLOUNT’s. The Greater Harrison County Drug Task Force executed search warrants in October of 2013 at Best Care Pharmacy locations in the West Virginia towns of Bridgeport, Lumberport and Belington. The evidence gathered during those searches was used to bring charges against BLOUNT and his co-conspirators.
Angela Davis and April Davis, who are mother and daughter, are scheduled to be in court on September 23 for plea hearings. Milan is scheduled for trial on November 5.
As part of the plea agreement BLOUNT must relinquish his West Virginia Board of Pharmacy license and he is prohibited from applying for its reinstatement.
BLOUNT faces up to forty-four years in prison, a fine of up to $2,500,000, and three years of supervised release. Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of BLOUNT.
The Task Force includes agents and officers from the Bridgeport Police Department, the Clarksburg Police Department, the West Virginia State Police – Bureau of Criminal Investigation (BCI), and the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorney John C. Parr with assistance from U.S. Attorney Ihlenfeld.U.S. District Judge Irene Keeley presided.
Palm Beach County Couple Charged with Bankruptcy FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that husband and wife Richard S. Krugman, 61, and Tamara B. Giordano, 53, of Palm Beach County, were charged today with bankruptcy fraud, in violation of Title 18, United States Code, Section 152(1).
According to an information filed today, Krugman and Giordano filed for bankruptcy on August 27, 2008, in United States Bankruptcy Court in Palm Beach County before U.S. Bankruptcy Judge Erik P. Kimball. At the time of filing, the defendants claimed they owed approximately $2.9 million to creditors, and had available assets worth less than $13,000. The information charges that the defendants concealed from their creditors, the trustee, and the Bankruptcy Court a number of valuable items including a women’s gold and diamond Rolex watch, a gold ring with two carats of diamonds, diamond earrings, Royal Dalton china, Waterford crystal, silver, and two George Rodrigue “Blue Dog” lithographs, signed and numbered.
The case will be heard by Senior U.S. District Judge Kenneth L. Ryskamp in West Palm Beach.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Carolyn Bell.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pain Clinic Owners and Medical Directors Indicted for Alleged “Pill Mill” Relocated from Florida to MarylandRead the Press Release
“Pharmaceutical Pills can be Just as Harmful as Illegal Drugs”
Baltimore, Maryland - Baltimore, Maryland - A federal grand jury has indicted the three owners and two medical directors of Healthy Life Medical Group, a purported pain management clinic, on drug conspiracy and other charges. The indictment was returned on September 3, 2014, and unsealed today upon the arrest of the defendants. Charged in the indictment are:Michael Resnick, a/k/a Michael Reznikov, age 53, of Brooklyn, New York; Resnick’s wife, Alina Margulis, age 48, also of Brooklyn, New York; Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 81, of Boca Raton, Florida; William Crittenden III, age 50, of Kensington, Maryland; and
Daniel Alexander, age 51, of Pikesville, Maryland.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
“Medical professionals who distribute oxycodone without valid medical need place users in grave danger,” said U.S. Attorney Rod J. Rosenstein. “Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper oversight.”
“Pill Mills that are established to masquerade as legitimate pain management facilities by purported health care professionals will not be tolerated by DEA,” said Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration. “Those who operate these facilities do so out of pure greed and disregard for human life. I am proud of the combined efforts of DEA, the Baltimore County Police Department, the Baltimore County States Attorney’s Office, and the United States Attorney’s Office during this three year investigation. The arrests today prove that our work is not done yet. We will remain diligent in our efforts to end prescription drug abuse and hold pill mill doctors accountable.”
According to the indictment, from March 1, 2011 through May 15, 2012, Resnick, Margulis and Wiseberg owned and operated Healthy Life Medical Group, a purported “pain management” clinic in Maryland. Physicians William Crittenden and Daniel Alexander served as the medical directors of Healthy Life.
The 43-count indictment alleges that the defendants conspired to distribute drugs, especially oxycodone and alprazolam, outside the scope of professional practice and/or not for a legitimate medical purpose to cash-paying customers, the majority of whom were not from Maryland and were abusing, misusing, and distributing the drugs.
From March 2010 through February 2011, Gerald Wiseberg owned and operated Total Care Medical Center, a pain management clinic located in Deerfield Beach, Florida. The DEA executed a search and seizure warrant at Total Care in February 2011, and as a result, Total Care was forced to temporarily shut down. According to the indictment, at about that time, Wiseberg approached Resnick and Margulis about opening a similar pain management clinic in Maryland. After visiting Total Care and being trained by Wiseberg in the operation of the business, Resnick and Margulis opened Healthy Life, with Wiseberg as part owner of the business. Wiseberg also served as a consultant to Resnick and Margulis, for which he was paid $12,000 per month. William Crittenden was hired by Resnick, Margulis and Wiseberg, to serve as the medical director of Healthy Life, for which he was paid $1,500 per day, until his resignation in August 2011. Daniel Alexander was hired as medical director in September 2011. Healthy Life first opened in Owings Mills, Maryland, but in October 2011, moved to a larger office in Timonium, Maryland.
The indictment alleges that customers to Healthy Life paid at least $300 for an initial visit and at least $250 for all subsequent visits and the fees were collected upfront. Further the indictment alleges that more than 80% of Healthy Life’s customers came from out of state. According to the indictment, between April 2011 and August 17, 2011, Crittenden issued prescriptions to 1,051 customers on 1,874 separate office visits for approximately 328,520 oxycodone pills - a total dosage amount of 7,631,085 mg of oxycodone. Between September 2011 and March 2012, Alexander issued prescriptions to 624 customers on 946 separate office visits for approximately 178,151 oxycodone pills - a total dosage amount of 3,879,500 mg of oxycodone. On each office visit with Crittenden and Alexander, customers received a least one prescription for oxycodone more than 96% of the time.
From March 2011 through March 13, 2012, customers allegedly paid Resnick, Margulis and Wiseberg, through Healthy Life, at least $2 million for office visits. Most of these proceeds were collected as cash. According to the indictment, although Healthy Life regularly received more than $10,000 in cash payments per day, Resnick made deposits of less than $10,000 into bank accounts he controlled with his wife, and instructed the office manager at Healthy Life to also make cash deposits of less than $10,000, in order to avoid detection by law enforcement.
The indictment seeks forfeiture of $2 million from all the defendants for the drug distribution conspiracy. The indictment seeks forfeiture from Michael Resnick in the amount of $1,012,410, for the structuring of currency deposits.
The defendants face a maximum sentence of 20 years in prison and a $1 million fine for the conspiracy. Crittenden and Alexander also face a maximum of 20 years in prison for narcotics distribution. Resnick, Margulis and Wiseberg face a maximum sentence of 20 years in prison for maintaining a drug involved premises. Resnick and Margulis face a maximum of 10 years in prison for money laundering; and Resnick faces a maximum of 10 years in prison for structuring of currency deposits. Resnick and Margulis are expected to have an initial appearance later today in U.S. District Court in Brooklyn, New York. Initial appearances are scheduled for William Crittenden today and for Daniel Alexander on September 15, 2014, both in U.S. District Court in Baltimore. No court appearance has been scheduled for Gerald Wiseberg.An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, IRS-CI, Baltimore County Police Department and Baltimore County State’s Attorneys’ Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Jason D. Medinger, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Operator of Local Frison Flea Market Convicted of Federal Fraud ChargesRead the Press Release
St. Louis, MO - JACK FRISON, SR. was convicted of multiple charges relating to his involvement in the sale of counterfeit goods and DVD?s.
According to testimony presented at trial, for more than two decades, Frison owned and operated the Frison Flea Market, in Pagedale, Missouri. Vendors paid Frison a rental fee to rent and operate sales booths at his Flea Market. For more than ten years, many of Frison’s vendors openly sold counterfeit goods from their booths at the Market. The counterfeit goods included clothing, footwear, purses, accessories, movie DVDs and music CDs. Some of the vendors sold counterfeit purses and similar luxury items bearing marks owned by Coach, Louis Vuitton, Dolce & Gabbana and others. Frison knew that the goods were counterfeit and allowed vendors to continue selling such goods. Rather than removing vendors selling illegal goods, Frison fined them instead, adding to his income.
Frison, Frontenac, Missouri, was convicted of one felony count of conspiracy to traffic in counterfeit goods, one felony count of aiding and abetting copyright infringement and one felony count of aiding and abetting trafficking counterfeit goods. The two-day trial was held in June before United States District Judge Rodney Sippel. He returned his ruling today and set sentencing for January 2015.
The conspiracy and copyright infringement charges each carry a maximum penalty of five years in prison and/or fines up to $250,000 and trafficking in counterfeit goods carries a maximum of 10 years in prison and/or fines up to $2,000,000. 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 U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Assistant United States Attorneys John Bodenausen and Jennifer Roy are handling the case for the U.S. Attorney's Office.
Oklahoma Man Found Guilty for Making A Bomb Threat Against Sheriff Joseph ArpaioRead the Press Release
PHOENIX – Gregory Lynn Shrader, 55, of Jay, Okla., was found guilty of willfully making a threat to kill by means of an explosive, transport of explosive material with the intent to intimidate, mailing injurious articles, and possession of explosive material by a prohibited possessor by a federal jury in Phoenix. The case was tried before U.S. District Judge Neil V. Wake between Sept. 4, 2014 and Sept. 11, 2014. The defendant is being held after trial. Sentencing is set before Judge Wake on Dec. 1, 2014.
The evidence at trial showed that Shrader threatened to kill Sheriff Joe Arpaio with an improvised explosive device on April 10, 2013. The evidence at trial showed that Shrader made the mail bomb threat as part of a revenge scheme to frame a former business partner. Sometime in early 2013, Shrader constructed an explosive device and placed it into a United States Postal Express Mail Box and designed it to appear operational.
The evidence at trial showed that Shrader was unhappy with the results of two failed lawsuits filed against his former business partner. As an act of revenge, Shrader addressed his package to Sheriff Joe Arpaio with a return address belonging to his former business partner.A conviction for willfully making a threat to kill by means of an explosive carries a maximum penalty of 10 years, a $250,000 fine or both. A conviction for transport of explosive material with the intent to intimidate carries a maximum penalty of 10 years, a $250,000 fine or both. A conviction for mailing injurious article carries a maximum penalty of 1 year, a $100,000 fine or both. A conviction for possession of explosive material by a prohibited possessor carries a maximum penalty of 10 years, a $250,000 fine or both. In determining an actual sentence, Judge Wake will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The Judge, however, is not bound by those guidelines in determining a sentence.
The investigation in this case was conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys Raymond K. Woo and Paul Stearns, District of Arizona, Phoenix.
CASE NUMBER: CR-14-0355-PHX-NVW
RELEASE NUMBER: 2014-051_Shrader
# # #For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.New Jersy Man Pleads Guilty to Firearms ChargeRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Kevin
Anderson, 46, of Mullica Township, New Jersey, pleaded guilty today in U.S. District Court to unlawful possession of firearms.Court records reveal during a July 12, 2013 probation home check at a Moose River, Maine residence, probation officers discovered seven firearms, including, four handguns, in the defendant’s bedroom. The defendant was prohibited from possessing handguns because of three prior felony convictions.
Anderson faces up to ten 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 by the Bureau of Alcohol, Tobacco, Firearms and
Explosives, the Maine Probation and Parole Office, the United States Border Patrol, the
Somerset County Sheriff’s Office and the Maine Warden Service.New Jersey Sex Offender Sentenced to 50 Years in Federal Prison for Traveling to Rhode Island to Engage in Sex Acts with A MinorRead the Press Release
PROVIDENCE, R.I. – Donald J. Jones, III, 50, of Pemberton, N.J., was sentenced yesterday by U.S. District Court Judge William E. Smith to 50 years in federal prison, having been convicted at trial in May 2012, on charges of interstate travel to engage in illicit sexual acts with a minor, aggravated sexual assault, enticement of a minor, and distribution of child pornography.
In January 2013, Jones was sentenced to a mandatory term of life in federal prison, plus an additional 10 years. The First Circuit Court of Appeals has since determined that a mandatory life sentence does not apply in this case. Jones’ sentence is announced by United States Attorney Peter F. Neronha; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
Jones was arrested by federal agents and the Rhode Island State Police on April 8, 2011, after he traveled by bus from Philadelphia to Providence, expecting to meet with an eight-year-old girl and her father. Jones communicated for nearly three weeks via the Internet and by phone with a person he believed was the girl’s father, when in fact he was communicating with federal agents assigned to the Rhode Island State Police Computer Crimes Unit/Internet Crimes Against Children (ICAC) Task Force.
According to the government’s evidence presented at trial, on March 21, 2011, Jones posted a message on an adult Internet forum seeking a parent willing to allow him to have sex with their pre-pubescent child. The message was discovered by a postal inspector assigned to the RI ICAC who responded, posing as the father of an eight-year-old Rhode Island girl.
Jones and the agent exchanged numerous emails which evolved from the parent purporting to have an interest in allowing Jones to have sex with his daughter, to Jones at first describing and then emailing videos of child pornography in an effort to depict his intentions. They also had numerous telephone conversations, including conversations during which a female Providence Police officer posed as the young girl.
Jones was previously convicted on three occasions in the state of New Jersey for crimes against children, including child pornography and aggravated sexual assault of a child under the age of thirteen.
The case was prosecuted by Assistant U.S. Attorneys Stephen G. Dambruch and Leslie J. Kane.
The Rhode Island State Police ICAC, U.S. Postal Inspectors and Homeland Security Investigations agents in Rhode Island were assisted in the investigation by Providence Police, Homeland Security Investigations in New Jersey and the U.S. Marshals Service.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]New Haven Man Sentenced to 51 Months in Federal Prison for Illegally Possessing FirearmsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on Wednesday, September 10, MARQUIS MITCHELL, 23, of New Haven, was sentenced by Senior U.S. District Judge Alfred V. Covello in Hartford to 51 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, on February 3, 2014, MITCHELL helped an associate sell a sawed-off shotgun to another individual. MITCHELL had stored the firearm in his residence. On March 28, 2014, law enforcement executed a search warrant at MITCHELL’s residence and found a loaded 9 millimeter handgun with an obliterated serial number in his bedroom.
MITCHELL has prior felony convictions for third degree burglary and first degree unlawful restraint.
On June 3, 2014, MITCHELL pleaded guilty to two counts of possession of a firearm by a previously convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Neo-Nazi Convicted for Sending Gruesome Threats to Florida Officials and Their FamiliesRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces today that a federal jury has found William A. White (38, Roanoke, Virginia) guilty of five counts of sending interstate threats with intent to extort and one count of using personal information without lawful authority in furtherance of a crime of violence. White faces a maximum penalty of 20 years in federal prison on each count. He was indicted on June 19, 2014. A sentencing date has not yet been set.
According to evidence presented during the trial, in May 2012, White, a self-professed neo-Nazi, sent a number of e-mail threats to Lawson Lamar, who was State Attorney for the Ninth Judicial Circuit of Florida at the time, Judge Walter Komanski, and a Federal Bureau of Investigation task force agent. These e-mails included threats to kidnap, rape, and kill the recipients’ family members, including children and grandchildren. The threats listed the home addresses of the officials, and specifically named some of Mr. Lamar's grandchildren as targets. Separate threats were also directed to Mr. Lamar's son, as well as to United States District Judge James C. Turk, who had presided over White's previous case in the Western District of Virginia.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu and James D. Mandolfo.
NYC Contractor Sentenced in Manhattan Federal Court to One Year and One Day in Prison for Tax EvasionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that NICK A. JODHA, a/k/a “Nick Persaud,” the owner of a contracting business that provided heating, ventilation, and air conditioning (“HVAC”) services throughout the New York City metropolitan area, was sentenced in Manhattan federal court to one year and one day in prison for his role in a tax evasion scheme. JODHA pled guilty in April 2014 before U.S. District Court Judge Richard J. Sullivan, who also imposed today’s sentence.
According to the criminal Information against JODHA and statements made at the plea proceeding:
JODHA operated and was a 50% owner of United HVAC Services, Inc. (“United HVAC”), an HVAC contracting firm based in South Ozone Park, New York, with operations throughout New York City. From 2007 through 2010, JODHA cashed more than $2.3 million in checks made payable to United HVAC at a check cashing service in Manhattan, rather than depositing the business checks into the business’s corporate bank account. JODHA used the proceeds from the cashed checks for business and personal purposes.
During the same period, in order to prepare both personal and corporate income tax returns, JODHA provided his accountant with the statements from the business bank account of United HVAC. However, JODHA failed to inform his accountant of the checks he cashed at the check cashing service, which were not reflected in the statements of United HVAC’s business bank account. Moreover, JODHA failed to advise his accountant that he used a portion of the cashed checks for business and personal expenses.
JODHA admitted to filing false S-Corporation income tax returns on behalf United HVAC for the tax years 2007 through 2010, which omitted any business activity and flow-through income concerning the cashed business checks, and to filing false individual income tax returns for the tax years 2007 through 2010, which understated his true taxable income and the taxes due on that income. JODHA’s conduct caused a tax loss to the Government of approximately $214,529.
In addition to the prison term, JODHA, 43, of South Ozone Park, New York, and Kissimmee, Florida, was sentenced to two years of supervised release. JODHA was also ordered to pay $214,529 in restitution to the IRS and a $100 special assessment fee.
Mr. Bharara praised the efforts of IRS-CI in the investigation. He also thanked the U.S. Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Special Assistant U.S. Attorney Jorge Almonte of the Department of Justice’s Tax Division is in charge of the prosecution.
Montana Federal Prosecutor Inducted into American College of Trial LawyersRead the Press Release
HELENA-Assistant United States Attorney Joseph E. Thaggard was inducted today in London, England, into the prestigious American College of Trial Lawyers. Thaggard was inducted during the group's annual meeting, which was held in London this year.
Thaggard is currently the Criminal Chief of the District of Montana United States Attorney's Office. Membership in the College is by invitation only and involves a rigorous selection process. Fellowship is limited to one percent of the lawyers in any state, and to those who have distinguished themselves in trial practice for at least 15 years. Thaggard joins the ranks of a select group of Montana lawyers, which includes six federal court judges.
It is an honor to be nominated and I am humbled to join such distinguished company," said Thaggard. "Today represents a profound accomplishment for Joe and our office," said Michael Cotter, United States Attorney for the District of Montana. "Joe exemplifies the highest levels of what it means to be a trial attorney, prosecutor and leader. This august distinction is well-deserved and we applaud the hard work, fortitude, and countless courtroom hours that this distinction represents."
Thaggard is a graduate of the University of Montana law school, and began his practice in 1989 as a Deputy County Attorney in Richland County, Montana, and an Associate Attorney at the Sidney Law firm of Koch and Carter. From 1990 through July 2002, Thaggard served as an Assistant Montana Attorney General in the Montana Department of Justice. Since July 2002, Thaggard has served as an Assistant United States Attorney in the District of Montana United States Attorney's Office, recently becoming the office's Criminal Chief. Thaggard has prosecuted a wide variety of cases during his career, including several complex murder and drug cases. He recently convicted Robert Farrell Armstrong, aka, "Dr. Bob," the leader of a significant Bakken drug trafficking organization. Thaggard has served as trial counsel in an estimated 700 cases over the course of his career thus far.
Miami Resident Sentenced in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), announce that Markinson Dolce, 25, of Miami, was sentenced today before U.S. District Judge Kenneth A. Marra to 72 months in prison, followed by two years of supervised release and ordered to pay $141,768 in restitution to the IRS.
Dolce previously pled guilty to one count of theft of government monies, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, on February 2, 2012, a marked Florida Highway Patrol (FHP) unit stopped a vehicle driven by Dolce that resulted in the seizure of six debit and credit cards, a laptop computer and flash drive, a notebook (containing handwritten lists of approximately 300 individuals’ names, social security account numbers, dates of birth, and employer identification numbers), and numerous items of mail in different names listing Dolce's home address. In total, Dolce had the personal identifying information (including names, dates of birth and social security numbers) of 461 different persons in his possession. It was later determined that the debit cards contained approximately $33,000 in fraudulent federal income tax refunds from 16 different fraudulent federal income tax returns that were filed.
In total, at least 75 different fraudulent federal income tax returns were filed in an attempt to secure $545,563.00 in fraudulent income tax refunds from the United States Treasury in Dolce's scheme. All of the names linked to the fraudulent tax refunds were found in the seized notebook from the FHP car stop.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. This case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Maryland Man Sentenced to 13-Year Prison Term for Sexually Abusing Three-Year-Old GirlDefendant Was Working as Contractor at Child’s HomeRead the Press Release
WASHINGTON - Juan Flores, 37, of Hyattsville, Md., was sentenced today to a 13-year prison term for sexually abusing a three-year-old girl earlier this year, U.S. Attorney Ronald C. Machen Jr. announced.
Flores pled guilty in June 2014, in the Superior Court of the District of Columbia, to a charge of first-degree child sexual abuse. He was sentenced by the Honorable Russell F. Canan. After his prison term, Flores will be placed on five years of supervised release. He also must register as a sex offender for the rest of his life. He also is subject to deportation proceedings.
According to the government’s evidence, on May 2, 2014, Flores was a contractor who was working on a private home in Northwest Washington. Near the end of the work day, he entered the home to retrieve a power cord that had been plugged inside. The victim was at home with her infant sibling and caregiver. The caregiver was upstairs tending to the infant. Flores approached the victim and sexually assaulted her. He then got the power cord and left the house.
The child later disclosed the sexual assault to her mother. The victim’s mother called the Metropolitan Police Department (MPD), and officers and detectives were dispatched.
An MPD detective assigned to the Youth Investigations Division subsequently interviewed all of the contractors who had worked at the house that day. All of the other workers stated that only the defendant went into the house all day. The detective then interviewed Flores, who stated that he went into the house to retrieve the power cord. Flores admitted that he saw the child near him, and then confessed to sexually assaulting her. He said that he stopped the assault because his conscience was killing him and he knew that what he was doing was wrong.
In announcing the sentence, U.S. Attorney Machen commended detectives from the MPD’s Youth investigations Division and Mobile Crime Division. He also praised those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins, Paralegal Specialist Jason Manuel, and Assistant U.S. Attorney Amy Zubrensky, who investigated and prosecuted the case.
14-204Man Charged with Distributing Methamphetamine Near A PlaygroundRead the Press Release
Robert John Mueller, age 29, from Dyersville, Iowa, has been charged with two counts of distributing methamphetamine near a playground and one count of possessing pseudoephedrine for use in the manufacture of methamphetamine. The charges are contained in an Indictment unsealed on September 12, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about June 19, 2014, and on or about June 26, 2014, Mueller knowingly and intentionally distributed a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, within 1000 feet of the real property comprising a playground, namely Candy Cane Park, located on Arbor Court Drive, in Dyersville, Iowa.If convicted on all charges, Mueller faces a possible maximum sentence of 40 years’ imprisonment, a $2,000,000 fine, $100 in special assessments, and a lifetime of supervised release following any imprisonment.
Mueller appeared today in federal court in Cedar Rapids. Mueller’s next appearance for a detention hearing is set for September 16, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Special Assistant United States Attorney Erin Eldridge and was investigated by the Dubuque Drug Task Force, which is comprised of officers from the Dubuque Police Department and the Dubuque County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-1015-LRR.
Lockport Man Indicted on Gun ChargeRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has indicted Philip A. Ruiz, 24, of Lockport, NY, on a charge of being a felon in possession of a firearm. The charge carries a maximum sentence of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the indictment, on September 3, 2014, law enforcement officers executed a search warrant on a vehicle in Lockport that they believe was used in two bank robberies on July 29, 2014 and August 19, 2014. During the search, they found a 12 gauge Mossberg pump action shotgun. The vehicle belongs to the defendant’s girlfriend but it was parked at Ruiz’s residence at the time the search warrant was executed.
Subsequent investigation determined that the defendant was on probation following a 2010 conviction for Attempted Burglary in the third degree and therefore was prevented from possessing firearms.
The defendant was arraigned this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy. Ruiz pleaded not guilty and is being held. The defendant is December 16, 2014.
The indictment is the culmination of an investigation on the part of the City of Tonawanda Police Department, under the direction of Chief William Strassburg, the Lockport Police Department, under the direction of Chief Lawrence Eggert, the New York State Police, under the direction of Major Michael Cerretto, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Thomas S. Higgins and the Federal bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Lewis Sentenced to over 17 Years for Fort Peck MurderRead the Press Release
GREAT FALLS-A 51-year-old Brockton man who stabbed and killed a 21-year-old on the Fort Peck Indian Reservation was sentenced to more than 17 years in federal prison. Great Falls United States District Court Brian Morris sentenced David Lewis, to 210 months in prison, followed by a term of 5 years supervised release.
Lewis previously pleaded guilty to second degree murder. In an Offer of Proof filed by the government, and accessible through PACER, the government stated that if the case had proceeded to trial, it would have proven that Lewis stabbed 21-year-old victim, A.B., approximately nineteen times in the back and arm following an alleged argument between them at Lewis' house in Brockton, Montana.
The case came to law enforcement's attention after the victim was reported missing by his family on January 11, 2014. The victim was last at the residence of David Lewis in Brockton, Montana. During the search for the victim, Lewis pretended as if he did not know where the victim was and even pretended to help search for him. Upon further inquiry from law enforcement, Lewis eventually confessed that he had stabbed and killed the victim, and that the victim's body was still in his home.
Because there is no parole in the federal system, Lewis will have to serve at least 85% of his sentence before he is released from prison. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law & Justice Criminal Investigators. Assistant United States Attorneys Lori Suek, Laura Weiss, and Ryan Weldon prosecuted the case.
Kenmore Financial Advisor Sentenced to 5 Years in Prison for Mail Fraud and Social Security Number FraudRead the Press Release
A long-time Kenmore, Washington financial advisor was sentenced today in U.S. District Court in Seattle to five years in prison for mail fraud and Social Security Number fraud, announced U.S. Attorney Jenny A. Durkan. EDWARD H. KAHLER, 65, was the owner of Key Resources, a Kenmore, Washington retirement consulting company which sold annuities and life insurance. KAHLER used proprietary information from the company he previously represented to access customer accounts. KAHLER used that information to liquidate the customer accounts and used the money for his own benefit. KAHLER was ordered to pay more than $1 million to eight elderly victims. At sentencing U.S. District Judge Robert S. Lasnik called KAHLER a “sophisticated fraudster” and noted “he took away trust, he took away money… and now people’s lives are affected in a terrible way.”
According to records filed in the case, from 1983 to 2007 KAHLER was a financial advisor for Variable Annuity Life Insurance Company (VALIC), and was appointed by VALIC to sell its annuities. VALIC terminated KAHLER in 2007 when it discovered he was promoting competing annuities. Using information that he had in his files, KAHLER created profiles for former clients using the VALIC on-line system, and fraudulently caused VALIC to liquidate the clients’ accounts and send the proceeds to him for his personal use and benefit. In the instance described in the complaint, on Christmas Eve 2012, KAHLER liquidated the account of a client who had died in 1984, and used the $125,000 to fund a trip to Las Vegas, the payment on a BMW and other personal expenses. He also paid business expenses with the money.
In fact, one type of KAHLER’s fraud endured nearly 30 years. In 1986 one victim thought she had purchased an annuity for more than $103,000. In fact KAHLER kept the money and never purchased the annuity. Over the years KAHLER sent false statements to the purchaser indicating the value of the account. In 2008, KAHLER sent a statement stating the account was worth more than $390,000. However, in 2012 when the victim tried to access her funds, she learned no annuity had ever been purchased on her behalf. Five other victims also sent checks to KAHLER for him to purchase annuities for them. KAHLER kept the money and never invested the money as requested.
The case was investigated by the FBI, the U.S. Postal Inspection Service (USPIS), and the Social Security Administration Office of Inspector General (SSA-OIG). The case is being prosecuted by Assistant United States Attorney Justin Arnold.
Justice Department and CNCS Announce $1.8 Million in Grants to Enhance Immigration Court Proceedings and Provide Legal Assistance to Unaccompanied ChildrenRead the Press Release
The Department of Justice and the Corporation for National and Community Service (CNCS), which administers AmeriCorps national service programs, has awarded $1.8 million in grants to increase the effective and efficient adjudication of immigration proceedings involving certain children who have crossed the U.S. border without a parent or legal guardian. The grants will be disbursed through justice AmeriCorps and will enable legal aid organizations to enroll approximately 100 lawyers and paralegals to represent children in immigration proceedings. The justice AmeriCorps members will also help to identify children who have been victims of human trafficking or abuse and, as appropriate, refer them to support services and authorities responsible for investigating and prosecuting the perpetrators of such crimes.
“The increasing numbers of unaccompanied children appearing in our immigration courts present an urgent challenge: how best to conduct immigration proceedings more efficiently while maintaining our commitment to following the procedures required by law and protecting the rights of these children.” said Attorney General Eric Holder. “We are addressing that challenge by using these funds to facilitate access to legal representation for some of the most vulnerable of these children. By increasing the number of represented children, we will enhance the resources available to both the children and the courts to better serve the administration of justice in all cases.”
“Young immigrant children often enter the U.S. after a long and dangerous journey,” said CNCS CEO Wendy Spencer. “This funding will enable organizations to engage AmeriCorps members in providing critical support for these children, many of whom are escaping abuse, persecution, or violence. As a result of this partnership, AmeriCorps will play a role in improving the effective and efficient adjudication of these very difficult cases.”
The grants were awarded to Equal Justice Works, Casa Cornelia Law Center, Catholic Legal Services of Miami, Legal Services of South Central Michigan, the Massachusetts Immigrant and Refugee Advocacy Coalition, the New York Immigration Coalition, and the University of Nevada Las Vegas. Their programs will serve children in immigration court locations in Atlanta, Baltimore, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, El Paso, Las Vegas, Miami, New York, Phoenix, San Antonio, San Diego and Seattle after justice AmeriCorps members attend a national training program later this year. The training will include immigration laws and regulations applicable to unaccompanied children; immigration proceedings practice and procedure; ethics for professionals working with children and youths; and trauma-informed and culturally-appropriate models of interacting with unaccompanied children.
“After more than a year of planning, we are pleased to see justice AmeriCorps taking flight,” said Associate Attorney General Tony West, who oversaw the development and implementation of the program for the Department of Justice. “The justice AmeriCorps program will address several important goals: enhancing the efficacy and efficiency of our immigration courts; protecting vulnerable populations; and increasing national service.”
“With the awarding of these grants, the Executive Office for Immigration Review (EOIR) will see an increase in the representation of children in immigration court proceedings,” said EOIR Deputy Director Ana M. Kocur. “This public-private partnership is the realization of creative government thinking to increase efficiencies in the immigration courts.”
For more information about the justice AmeriCorps program please visit: http://www.nationalservice.gov/programs/americorps.
The justice AmeriCorps program is a strategic partnership between the Department of Justice and the Corporation for National and Community Service to provide legal aid to vulnerable populations. This particular program responds to Congress’ direction to the Executive Office for Immigration Review “to better serve vulnerable populations such as children and improve court efficiency through pilot efforts aimed at improving legal representation.”
EOIR is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to U.S. immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
The Corporation for National and Community Service is a federal agency that engages more than five million Americans in service through its AmeriCorps, Senior Corps, Social Innovation Fund and other programs, and leads the president's national call to service initiative United We Serve. For more information, visit: www.nationalservice.gov.
Jasper County Woman Sentenced to 188 Months on Methamphetamine ChargesRead the Press Release
Follow @SDILNewsA Jasper County woman was sentenced on September 11, 2014, to over fifteen years in federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Ashley M. Attaway, 29, of Yale, Illinois, was sentenced to 188 months in prison, five years’ supervised release following the prison sentence, and fined $100. Attaway had previously pleaded guilty to the charge that Attaway, David C. Halterman, 44, of Yale, Illinois, Rebecca A. Moore, 36, of Yale, Illinois, and Ricky Lee Roberts, II, 39, of Franklin, Indiana, conspired to knowingly and intentionally distribute methamphetamine.
Co-defendant Moore has pleaded guilty to the charges against her and is scheduled for sentencing on October 3, 2014. Co-defendants Halterman and Roberts are set for trial on November 3, 2014.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Jasper County Sheriff’s Department, the Crawford County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, and Firearms. The Jasper County State’s Attorney’s Office has assisted throughout the investigation in this case.
The case is being handled by Assistant United States Attorney George Norwood.
Jackson County Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsOn September 12, 2014, Willie Joe Strayhorn, a/k/a “Jo Jo,” 47, of Murphysboro, was sentenced on a one-count indictment charging Failure to Register as a Sex Offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Strayhorn was sentenced to 48 months in federal prison, to be followed by 3 years of supervised release, and fined $200.
The offense occurred between November 1, 2010, and September 4, 2013, in Jackson County. Evidence at the plea and sentencing hearings established that Strayhorn was required to register as a sex offender under both Illinois law and the Sex Offender Registration and Notification Act (SORNA), because of a 1993 conviction for Aggravated Criminal Sexual Abuse in Jackson County Circuit Court. Strayhorn failed to register in August 2010, and in July 2011, members of the United States Marshals Service Task Force found Strayhorn hiding in a closet in a Dyersburg, Tennessee, residence. Strayhorn had not registered in Illinois since August 2010 and never registered in Tennessee. The district judge imposed a higher sentence on Strayhorn based on his substantial criminal history, which included previous convictions for robbery, aggravated battery, domestic battery, residential burglary, burglary, forgery, possession of a controlled substance, failure to register as a sex offender, evading arrest, and theft.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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 United States Marshals Service and the Murphysboro Police Department. The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
International Wildlife Investigation Results in Charges against Five Canadian Clients for Illegal Take of Wildlife, Filing False Documents, and Wildlife SmugglingRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a joint United States-Canadian wildlife investigation has resulted in the filing of charges by the United States Attorney in Anchorage against five Canadian citizens for the illegal take and export of wildlife from Alaska to Canada.
The United States filed charges against Alberta, Canada residents Fred R. Thomson, 54, Ben J. Thomson, 32, Kelly D. Murray, 51, Colby L. Murray, 21 and Jason Clemett 42, for the illegal take of wildlife, concealing the illegal nature and take of wildlife on the guided hunts, and the illegal export of unlawfully taken wildlife.
The guided hunts, and the violations during these hunts, occurred between October 2009 and October 2011, in the Haines, Alaska area.
The charges filed are the result of an extensive joint United States-Canadian investigation. Starting in November 2012, Canada Crown prosecutors in Alberta and Yukon Territory, Canada, charged 17 subjects with 55 violations under the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA). These charges arose out of the illegal guided hunts charged above and the illegal import of unlawful wildlife from the United States into Canada. The Canadian trials began in June 2014.
The maximum penalty for violating the Lacey Act as charged is one year imprisonment and a $100,000 fine. Arraignment dates have not been set.
Ms. Loeffler commends the United States Fish and Wildlife Service; Alaska Wildlife Troopers; Environment Canada Wildlife Enforcement; Yukon Conservation Officer Service; Alberta Fish and Wildlife; Parks Canada; British Columbia Conservation Officer Service; and the Public Prosecution Service of Canada for the international cooperation extended in the investigation of these cases.
The filing of an Information is only a charge, and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Importing Company’s Founder Pleads Guilty to Securities FraudRead the Press Release
On September 12, 2014, Eric Aronson, the founder and head of Permapave Industries LLC and Permapave USA Corporation (“Permapave”), pleaded guilty to securities fraud for soliciting over $30 million from more than 200 investors for fraudulent Permapave promissory notes. Permapave marketed porous paving stones in the United States that were manufactured in Australia.
The guilty plea was announced by Loretta E. Lynch, United States attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to court filings and facts presented at the plea hearing, the defendant and his coconspirators issued promissory notes to investors and promised to use the proceeds to finance shipments of Permapave paving stones from Australia to the United States. In reality, the defendant, together with his coconspirators, operated a Ponzi scheme whereby some investors were paid returns on their investment from the funds the defendant obtained from other defrauded investors. From approximately August 2006 to December 2010, the defendant defrauded investors out of approximately $30 million through this scheme. The defendant and his coconspirators converted millions of dollars of investor funds for personal expenditures, including vacations, watches, jewelry, and automobiles.
“The defendant used the promise of sound securities investments to steal investor funds. He pretended to be a legitimate businessmen but he was no more than a common thief. Through his actions, the defendant caused the financial ruin of many, all the while enriching himself. This office will vigorously investigate and prosecute those who lie to, cheat, and steal from the investing public,” stated Unites States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
Today’s guilty plea took place before Magistrate Judge Gary Brown at the federal courthouse in Central Islip, N.Y. Aronson faces a maximum sentence of 20 years’ incarceration.
The case is being prosecuted by Assistant United States Attorney William P. Campos.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency 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.
The Defendant:
ERIC ARONSON
Age: 46
Syosset, New York
E.D.N.Y. Docket No. 12-CR-245
Greenville Bank Robbery Suspects SentencedRead the Press Release
Oxford, MS: All four individuals responsible for the September 10, 2013 robbery of a bank in Greenville, Mississippi, have now been sentenced for their crimes.
Johnnie Sharp, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI) in Mississippi, and Felicia C. Adams, United States Attorney for the Northern District of Mississippi, announced that Derotha Lovette Wallace (aka DeDe Wallace), age 29; Warren Gene Williams, III, age 19; and Freddie Djuan Clark, age 26, and Wilbert Parish, Jr., partnered together to rob the Planters Bank and Trust Company, located on Washington Avenue, on Tuesday, September 10, 2013. According to witnesses, Williams, Clark, and Parish entered the bank armed with handguns and robbed the bank of a substantial sum of money. Williams and Clark were captured by Greenville police officers immediately while exiting the bank, and the stolen money was recovered. Wallace, who was to drive the get-away vehicle, turned herself in Tuesday night. Parish, who initially evaded capture, was located and arrested in Memphis, Tennessee with the assistance of the Memphis FBI, the United States Marshals Service (USMS), and the Memphis Police Department.
On November 1, 2013, Warren Williams pleaded guilty to bank robbery; brandishing a firearm during a crime of violence, and bomb threat by means of a cellular telephone. On June 18, 2014, Williams was sentenced to serve a total of 96 months in prison, to be followed by three (3) years of supervised release.
On January 4, 2014, Derotha Wallace pleaded guilty to bank robbery; possession of a firearm during a crime of violence; and bomb threat by means of a cellular telephone. On May 22, 2014, Wallace was sentenced to 36 months imprisonment, followed by three (3) years supervised release.
January 23, 2014, Freddie D’Juan Clark pleaded guilty to armed bank robbery and possession of a firearm during and in relation to a crime of violence. On June 19, 2014, Clark was sentenced to serve sixty-two (62) months in prison, followed by five (5) years supervised release.
On March 17, 2014, Wilbert Parish, Jr. pleaded guilty to armed bank robbery, brandishing a firearm during and in relation to a crime of violence, and making a bomb threat by means of a cellular telephone. On September 11, 2014, Parish, found to be the mastermind of the conspiracy, received a sentence of 162 months in prison, followed by 3 years supervised release.
This case was investigated by the FBI, and the Greenville, Mississippi Police Department, and was prosecuted by Assistant United States Attorneys Robert H. Norman and Susan S. Bradley.
Foster Mother Sentenced to Prison for Beating Infant with A Baby BottleRead the Press Release
GREAT FALLS - The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on September 11, 2014, before U.S. District Judge Brian M. Morris, SAMANTHA RENEE HEADCARRIER, 24, of Browning, was sentenced to a term of 120 months in prison, three years supervised release, and a special assessment of $100.
Headcarrier was sentenced because she assaulted an eight-month old baby. In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government would have proven that Headcarrier "tossed" the baby on the bed. Headcarrier then spanked the baby and hit her on the back of the head with a baby bottle approximately two to three times. When interviewed, Headcarrier also admitted that on another occasion she hit the baby "like an adult."
Headcarrier pleaded guilty to Assault Resulting in Serious Bodily Injury and Felony Child Abuse. In this case, the United States charged a ten-year statutory minimum because the crime of violence involved a child. Congress enacted this sentencing enhancement to ensure that crimes of violence against children were treated more harshly.
In a sentencing memorandum, Weldon told the Court, "This case is tragic. Even if the mandatory minimum did not apply, the conduct is reprehensible and justifies ten years of imprisonment . . . . While it is true that Headcarrier will be forced to endure ten years of prison, that punishment is minor when compared to the baby who will likely face a lifetime of obstacles as a result of Headcarrier's actions."
Despite all of the above, the baby in this case is now with many individuals who love and provide never-ending care. For example, the current caregivers are a family involved in law enforcement and the military within the Great Falls community. In a letter to the Court, one of those caregivers described her first contact with the baby as follows:
This little angel that was no bigger than a pillow was lying on an adult-size bed, unconscious and with two tubes pumping blood out of her head. She had bruises on her face and a ventilator helping her breathe. I have already had to step away twice from typing this, even though it's brutal for me to relive this, it's even more brutal for [the Court] NOT to hear her story.
The current caregiver then described how proud she will be when the baby can "walk, talk, sit, stand, or develop cognitive skills." When that time arrives, the current caregiver told the Court that "the memory of a monster that stated, 'I hit her like an adult,' will be a distant memory."
Another individual, who works at a daycare, described her daily interactions with the baby and requested that harsh consequences be imposed on Headcarrier.
Two things you will notice about [the baby] are her ever-smiling face and the fact that her legs are constantly moving. I believe she wants to walk. She sees the other children in her room moving around on their own and she can't. She can't crawl. She can't get to the sitting position on her own. She had this taken from her.
Too many children are dying, or are crippled for life, because people can't control themselves. Well, enough is enough. People need to be held accountable for their actions. Consequences need to be harsher. [The baby's] consequences are harsh. She will never be the child she was before this happened.
The Court sentenced Headcarrier to ten years of imprisonment with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Headcarrier will likely serve all of the time imposed by the court. In the federal system, Headcarrier 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 investigation was conducted by the Federal Bureau of Investigation.
Former Visa Consultant Sentenced to 37 Months in Prison for Embezzling over $245,000 from EmployerDefendant Also Admitted Collecting Fraudulent Unemployment BenefitsRead the Press Release
WASHINGTON – Claudius Kai Kpakima, 35 of Silver Spring, Md., was sentenced today to 37 months in prison for a federal offense stemming from the embezzlement of more than $245,000 from his employer, a visa processing company, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Bryan Porter, Commonwealth’s Attorney for the City of Alexandria, Va.
In a separate scheme, Kpakima earlier admitted collecting more than $14,000 in fraudulent unemployment benefits.
Kpakima pled guilty in June 2014 in the U.S. District Court for the District of Columbia to a charge of interstate transportation of stolen property. He was sentenced by the Honorable Senior Judge Royce C. Lamberth. Upon completion of his prison term, Kpakima will be placed on three years of supervised release. Kpakima also was ordered to pay restitution of $246,191 to his former employer and another $14,615 to the District of Columbia Department of Employment Services. He also must pay a forfeiture money judgment of $163,589.
According to the government’s evidence, Kpakima worked from May 2011 until November 2012 as a visa consultant for a company identified in court documents as “Company A,” a visa processing company that focused on obtaining expedited visas for individuals and corporate clients across the United States.
Kpakima performed visa processing and expediting duties, and he was able to request money orders from his supervisors through the company’s money order machine. He was required to provide a reason to supervisors for the money orders. Between May 2011 and November 2012, Kpakima fraudulently requested more than 2,900 money orders, which he then cashed at various establishments. He gave the establishments various reasons why he had the money orders, including a false claim that he got them in return for delivering passports.
All told, Kpakima obtained and cashed $246,191 in money orders, even though he was not entitled to any of this money.
In the second scheme, between July 2011 and June 2012, while Kpakima was working for “Company A,” he received $14,615 in fraudulent unemployment benefits from the District of Columbia Department of Employment Services. On at least 35 occasions, he recertified that he was eligible for these benefits when he was in fact working at “Company A.”
Kpakima has several previous convictions for theft and related activity. His plea agreement is part of a broader resolution that includes charges filed in the City of Alexandria, Va. A court appearance there is scheduled for October 2014.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Commonwealth’s Attorney Porter commended the work of those who investigated the case from the FBI and the Alexandria, Va. Police Department. They also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD) and Assistant Commonwealth's Attorney David Lord of the Alexandria Office of the Commonwealth’s Attorney, who is prosecuting the case in Virginia. They acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Catherine K. Connelly, Deputy Chief of the Criminal Division, who assisted with forfeiture issues; Paralegal Specialist Donna Galindo, and Intelligence Specialist Sharon Johnson. Finally, they thanked Assistant U.S. Attorney Philip A. Selden, who prosecuted the case in the District of Columbia.
14-205Former Union President Pleads GuiltyTo Embezzling Funds from VA EmployeesRead the Press Release
TOPEKA, KAN. - The former president of the American Federation of Government Employees Local Union 906 pleaded guilty Monday to embezzling more than $51,000 from union members in Topeka and Waco, Texas, U.S. Attorney Barry Grissom said.
Timothy Sanchez, 40, Topeka, pleaded guilty to one count of embezzlement. In his plea, he admitted the crimes occurred while he was president of the labor union, which represents approximately 200 active members who are employed at the Veterans Administration Health Resource Center in Topeka and Waco.
While Sanchez served as president, he embezzled funds from the union by making unauthorized debit card charges for expense reimbursements, writing unauthorized checks for his own benefit, and filing false meeting minutes and annual financial reports with the Department of Labor to conceal his embezzlement.
Sentencing is set for Nov. 25. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Department of Labor Office of Labor-Management Standards investigated. Assistant U.S. Attorney Rich Hathaway is prosecuting.
Former Lohn I.S.D. Business Manager Sentenced to Federal Prison for Stealing More Than $500,000 from the School DistrictRead the Press Release
In Austin today, 58-year-old Patty E. Smith of Lohn, TX, was sentenced to two years in federal prison and ordered to pay $ 636,475.82 restitution for embezzling from the Lohn Independent School District (LISD) announced United States Attorney Robert Pitman and Special Agent in Charge R. Damon Rowe, Internal Revenue Service Criminal Investigation, Dallas Field Office.
Smith was remanded to the custody of the U.S. Marshals Service following today’s hearing to begin serving her prison term.
“Ms. Smith took advantage of her position at Lohn ISD and abused the trust of the school district and all taxpayers by stealing federal money and using it for her own purposes. IRS Criminal Investigation commends the Texas Rangers for their assistance in the investigation,” said Damon Rowe, Special Agent in Charge of IRS Criminal Investigation, Dallas Field Office. “IRS Criminal Investigation remains steadfast on focusing our efforts to ensure that these types of crimes are investigated and those abusing the public trust are held accountable.”
In June, Smith pleaded guilty to one count of tax evasion and one count of theft from an organization receiving federal funds. By pleading guilty, Smith admitted that between September 2006 and September 2012, she stole LISD funds totaling $507,075.82 and used it for her personal benefit. She also admitted to evading paying taxes on the embezzled funds, which constituted taxable income, by not disclosing it to the IRS on her yearly Income Tax returns.
According to the factual basis filed in this case, Smith did not have signature authority over any LISD financial accounts, however, she had sufficiently gained the trust of the person with signature authority to the point that that person signed blank checks for funds that Smith would subsequently complete and make payable to either “cash” or fictitious payees. Smith concealed her activities by recording false check amounts in the check register. For years 2007 through 2011, Smith’s willful evasion of taxes on the funds she stole from LISD resulted in the underpayment of income tax in the amount of approximately $129,400.
This case was investigated by special agents with the IRS Criminal Investigation with the assistance of the Texas Rangers. Assistant United States Attorney Matthew Devlin prosecuted this case on behalf of the Government.
Former Gwinnett County Lawyer Indicted for Stealing Client FundsRead the Press Release
ATLANTA – Former attorney Michael Rene Berlon has been arraigned on federal charges of mail and wire fraud.
“This defendant is charged with defrauding his own clients out of over $1.8 million,” said United States Attorney Sally Quillian Yates. “They came to him for legal help, and instead he drained their bank accounts.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Individuals relying on the professionalism and trust of individuals like Mr. Berlon should be able to turn to someone when that trust is violated. The FBI, in being well positioned to investigate such allegations involving the diversion of funds through mail and wire fraud, is that someone.”
According to United States Attorney Yates, the charges, and other information presented in court: Berlon, who practiced in Grayson, Ga., through his law firm, the Law Office of Michael R. Berlon, is charged with obtaining funds from clients of his law firm and other individuals through false pretenses. The indictment alleges that some clients provided money to him believing that he would create a trust for them, and would hold the funds in trust. Instead, Berlon used the funds for personal expenses, including to pay his American Express bill and to repay other clients.
The indictment also alleges that in one instance, Berlon obtained money from two individuals who were looking for his assistance with starting a new business. He told the victims that he would help them get a loan, but they were required to provide a percentage of the requested loan amount as a down payment. Instead of assisting them with obtaining a loan, Berlon used the funds for his personal expenses and debts. In total, it is alleged that Berlon received at least $1.8 million in client funds from 2008-2013.
Berlon, 55, of Grayson, Ga., was arraigned before United States Magistrate Judge Justin S. Anand. He was indicted by a federal grand jury on September 9, 2014.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jamie L. Mickelson is prosecuting the case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Business Official and Treasurer of the Carterville School District Sentenced to A Year and A Day in Prison for Embezzling Funds from the Carterville School DistrictRead the Press Release
Follow @SDILNewsTodd Ryan Frazier, 32, of Grand Rapids, Michigan, was sentenced to twelve months and one day in federal prison as a result of his conviction for Embezzlement and Theft from the Carterville School District, a unit of local government that received federal funds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Frazier was also ordered to serve two years supervised release following his release from prison, to pay restitution totaling $100,420.80, and to serve two hundred hours of community service.
“I cannot stress enough that public service is a public trust. If you violate the public’s trust, you will be punished.” said United States Attorney Wigginton.
Court documents reveal that Frazier, from August of 2008 and continuing through February of 2012, engaged in a scheme to defraud the Carterville School District, Unit 5, in Williamson County, while he was the School Business Official, which included the duties and responsibilities to act as the treasurer and payroll officer for the district. Frazier abused his position of public trust over a three and a half year period causing a loss of approximately $114,000. Although Frazier pled guilty to one count of a multiple count indictment, all of his actions in the remaining counts were considered as relevant conduct by the Court in determining the appropriate sentence to impose. There was evidence that Frazier's manipulation of the financial records of the school district caused an immense disruption and a lot of effort to rectify.
The successful prosecution is the result of an investigation conducted by the Federal Bureau of Investigation with the assistance of the Carterville School District. The case was handled by Assistant U.S. Attorney Norman R. Smith.
Florida Pastor Sentenced for Insurance Fraud ScamRead the Press Release
RICHMOND, Va. – Nathaniel A. McNeil, 46, of Pensacola, Florida, was sentenced today to 68 months in prison, followed by a three year termof supervised release, for engaging in a life insurance scheme with at least 1,249 victims. McNeil was also ordered to pay $32,835 in restitution to identified victims.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson.
McNeil pleaded guilty to conspiracy to commit mail fraud on June 12, 2014. According to court documents, he was the founder and president of an entity called Life Transformation Ministries International (or “LTMI”), which purported to be a non-profit, religious organization. From 2009 through August 2011, McNeil, with the help of his co-conspirator Trudi Batiste, promised LTMI members a universal life insurance policy in exchange for a one-time fee of approximately $25. To further his scheme, McNeil also attempted to defraud several insurance companies by misrepresenting in insurance applications the net worth of his ministry and that applicants were actually his employees. Ultimately, McNeil and Batiste obtained nearly $240,000 from at least 1,249 victims across the country. None of the individuals that paid the fee ultimately obtained a life insurance policy. Instead, McNeil and Batiste used the money for their own personal purposes.
Batiste pled guilty to the mail fraud on May 8, 2014, and is scheduled to be sentenced before Judge Hudson on September 30, 2014.
This case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Katherine Lee Martin prosecuted the case on behalf of the United States.
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. 3:14-cr-43.
Five Men Arrested, Indictedon Federal Gun Charges in KankakeeRead the Press Release
Urbana, Ill. -- Five men who were arrested yesterday on gun charges made their initial court appearances this afternoon before U.S. Magistrate Judge David G. Bernthal, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. A federal grand jury returned the indictments earlier this week but the charges remained sealed pending their arrests and court appearances.
The defendants, charged in separate cases, are: Rico J. Speed, 27, of the 1200 block of 4th Street, Kankakee, four counts of felon in possession of a firearm and one count of distribution of 28 grams or more of crack cocaine; Antwon T. Crite, 38, of Hopkins Park, eight counts of felon in possession of a firearm; Roosevelt D. Smith, 22, of the 1300 block of 7th Ave., Kankakee, four counts felon in possession of a firearm (four counts) and one count of possession and sale of stolen ammunition; Charles V. Williams, 39, of the 1200 block of E. Locust St., Kankakee, one count felon in possession of a firearm; and, Carlton Lashawn Smith, 34, of the 400 block of S. Rosewood Ave., Kankakee, one count felon in possession of a firearm.
The charges are the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. The cases are being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The Kankakee Area Metropolitan Enforcement Group, Chicago Police Department, Illinois State Police, and Kankakee County Corrections assisted with the arrests.
The five defendants were ordered to remain detained in the custody of the U.S. Marshals Service pending trial. Pre-trial conferences were set for Oct. 31, with trial dates scheduled on Nov. 12, 2014.
If convicted, each count of felon in possession of a firearm carries a statutory penalty of up to 10 years in prison. One defendant, Smith, is also charged with one count of distribution of 28 grams or more of crack cocaine, that, if convicted, carries a mandatory minimum 10 years to life in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
# # # #Five Correctional Officers, an Inmate and A Drug Supplier Plead Guilty in Baltimore Jail Racketeering ConspiracyRead the Press Release
Correctional Officer Sentenced Today to Over Two Years in Prison
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Sean Graves, age 48, of Windsor Mill, Maryland, today to 28 months in prison followed by three years of supervised release for participating in a racketeering conspiracy that included the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).
Earlier this week, four former correctional officers, Angela Johnson, age 35, Antonia Allison, age 28, and Javonne Lunkin, age 29, all of Baltimore, and Kevin Armstrong, age 27, of Gwynn Oak, Maryland, pleaded guilty to participating in the racketeering conspiracy.Additionally, last week, former correctional officer Tiffany Linder, age 28, former inmate Derius Duncan, age 24, both of Baltimore, and Linnard Wortham, a/k/a “Stu,” age 29, of Pikesville, Maryland, pleaded guilty to the racketeering conspiracy. Wortham also pleaded guilty to possession with intent to distribute crack cocaine.
The guilty pleas and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, the Black Guerilla Family (BGF) has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
Graves, Johnson, Armstrong, Allison, Linder and Lunkin were correctional officers (COs) at the BCDC who smuggled contraband into the jail for distribution by BGF inmates. Graves smuggled Percocet, marijuana and tobacco into the jail from 2011 to 2013 on behalf of BGF leader Tavon White. Graves acted in concert with other correctional officers. Johnson admitted that she smuggled drugs such as Percocet, into the jail.
Allison admitted that she worked with other COs to smuggle drugs such as Suboxone and other prescription pills as well as marijuana, into the jail. Allison knew other inmates and COs who were involved in smuggling, and in sexual relationships. Armstrong admitted that he smuggled prescription pills, marijuana, cell phones and tobacco into the jail from 2011 to 2012. Armstrong acted in concert with Allison and other correctional officers.Linder admitted that she smuggled prescription pills into BCDC for BGF inmates such as Tavon White. Linder also warned White of impending searches of BCDC and White in turn warned other BGF members. Lunkin was a CO at the BCDC Jail Industries Building in 2012 to 2013, and cooperated with others, including CO Katera Stevenson, in smuggling contraband into the jail. Lunkin knew other inmates and COs were involved in smuggling and in sexual relationships.
According to his plea agreement, Duncan is a BGF member. Duncan was in pretrial custody at BCDC from 2012 to 2013 and directed the smuggling of contraband into the jail, including cell phones, tobacco and other drugs, through COs who received payments, gifts or a share of the profits. Duncan had a sexual relationship with one of the COs involved in contraband trafficking. Duncan and his closest BGF allies frequently used others to obtain contraband outside the prison, and hold it or deliver it to COs for smuggling.
Wortham supplied contraband, including marijuana, that was smuggled into BCDC. COs such as Jasmine Thornton and Kimberly Dennis received the contraband from Wortham and then smuggled the contraband to BCDC inmates, including Duncan and Jamar Anderson. Law enforcement executed a search warrant at Wortham’s residence on November 20, 2013 and seized crack cocaine, marijuana, drug paraphernalia and $4,000.
U.S. District Judge Ellen L. Hollander scheduled sentencing for:
Wortham on January 9, 2015
Allison on January 16, Duncan on January 23, Linder, Lunkin and Armstrong on January 30, and
Johnson on February 6.The defendants face a maximum penalty of 20 years in prison for the racketeering conspiracy. Wortham also faces a mandatory minimum of 10 years in prison and a maximum penalty of life in prison for the drug offense.
To date, 34 of the 44 defendants charged in the conspiracy have pleaded guilty, including 21 correctional officers. One defendant has died. Trial is scheduled to begin November 17, 2014 for the remaining defendants.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Federal Jury Convicts Billerica Woman on Advance Fee ScamRead the Press Release
BOSTON – A Billerica woman was convicted following a five-day jury trial on wire fraud charges in connection with a bogus bank guaranty program.
Diane Glatfelter, 48, was found guilty by a federal jury of four counts of wire fraud. Glatfelter had been indicted in August 2012. U.S. District Judge Douglas P. Woodlock scheduled sentencing for Dec. 16, 2014.
In 2007 and 2008, Glatfelter engaged in scheme to defraud a young real estate businessman from California who was seeking funding for a development project. Glatfelter promised to secure a $20 million loan for him, but required him to pay $125,000 in up-front fees. The loan never materialized and Glatfelter used the money for various purposes other than to secure any funding. As part of her scam, Glatfelter set up two bogus front companies and used her unsuspecting sister to make these fronts appear legitimate.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a $250,000 fine on each of the four counts. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sandra S. Bower and Christine Wichers of Ortiz’s Economic Crimes Unit and Civil Division, respectively.Federal Court Bars Louisiana Woman from Preparing Federal Tax ReturnsRead the Press Release
A federal court in New Orleans has permanently barred a La Place, Louisiana, woman from preparing federal income tax returns for others, the Justice Department announced today.
The injunction, to which Shawanda Nevers, aka Shawanda Bryant, Shawanda Hawkins and Shawanda Johnson, consented, was entered by U.S. District Judge Susie Morgan for the Eastern District of Louisiana. According to the complaint, Nevers had prepared federal income tax returns in Louisiana through a business named 3LJ’s Industrial Service Solutions LLC. The complaint alleged that she prepared returns that unlawfully understated income tax liabilities and overstated refunds through a variety of schemes.
According to the complaint, Nevers prepared returns that claimed losses by fabricating expenses for fictitious businesses or overstating expenses incurred by legitimate enterprises. The deductions for these fictitious or overstated expenses were claimed on a Form Schedule C – Profit or Loss From Business, which Nevers often included in her customers’ returns without their knowledge. The returns Nevers prepared directed the Internal Revenue Service (IRS) to deposit the resulting refunds into her account, from which she would deduct a fee before remitting the balance to her customers.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014. The IRS has tips for choosing a tax preparer on their website. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
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Fair Haven Woman and Brooklyn, New York Man Face Federal Charges for Heroin and Crack Cocaine DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Ras Foster, 25, of Brooklyn, New York and Keisha Richards, 21, of Fair Haven, Vermont have been charged with distributing heroin and crack cocaine in the Fair Haven, Vermont area. Both pled not guilty before U.S. Magistrate Judge John Conroy. Magistrate Judge Conroy released Foster on the condition that he reside with his mother in Brooklyn, New York pending trial. Magistrate Judge Conroy ordered Richards held without bail until she was accepted into a suitable residential drug treatment program. After eight days in jail Richards was released into such a program.
The United States Attorney emphasizes that the charges contained in the Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If Foster or Richards is convicted, each faces a maximum possible term of imprisonment of twenty years.
The United States is represented in this matter by Assistant U.S. Attorney Joseph Perella. Foster is represented by William Christman, Esq. Richards is represented by Richard Bothfeld, Esq. The investigation was conducted by the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, and the Drug Enforcement Administration.
Erie Man Pleads Guilty to Unlawfully Possessing A Firearm as A Convicted FelonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 43-year-old Erie, Pennsylvania resident pleaded guilty today before Senior U.S. District Court Judge James M. Munley to unlawfully possessing a firearm and ammunition as a convicted felon.
According to United States Attorney Peter Smith, the defendant, James Presley, admitted to possessing a 9mm handgun and ammunition while driving a vehicle on Interstate 80 near Hazleton on May 15, 2014. Presley further admitted that at the time he possessed the firearm and ammunition, he had prior felony convictions, including a conviction for murder in 1992 in Philadelphia. Presley served 13 years in prison for the murder.
Presley was charged in an Information filed on July 15, 2014. The charge against Presley resulted from an investigation by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pennsylvania State Police.
Presley faces a potential maximum sentence of 10 years in prison and a $250,000 fine. Sentencing was scheduled for December 12, 2014. Presley remains in custody pending sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****Erie Man Pleads Guilty to Unlawfully Possessing A Firearm as A Convicted FelonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 43-year-old Erie, Pennsylvania resident pleaded guilty today before Senior U.S. District Court Judge James M. Munley to unlawfully possessing a firearm and ammunition as a convicted felon.
According to United States Attorney Peter Smith, the defendant, James Presley, admitted to possessing a 9mm handgun and ammunition while driving a vehicle on Interstate 80 near Hazleton on May 15, 2014. Presley further admitted that at the time he possessed the firearm and ammunition, he had prior felony convictions, including a conviction for murder in 1992 in Philadelphia. Presley served 13 years in prison for the murder.
Presley was charged in an Information filed on July 15, 2014. The charge against Presley resulted from an investigation by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pennsylvania State Police.
Presley faces a potential maximum sentence of 10 years in prison and a $250,000 fine. Sentencing was scheduled for December 12, 2014. Presley remains in custody pending sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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