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Thursday 24 July 2014
Man Who Allegedly Escaped from Prison in 1973 Charged with Social Security Fraud, Identity Theft, and Unlawful Possession of A FirearmRead the Press Release
Ronald Dwaine Carnes, 69, from Waterloo, Iowa, has been charged with four counts of Social Security fraud, two counts of identity theft, and one count of being a felon and fugitive from justice in possession of a firearm. The charges are contained in an Indictment filed on July 22, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that Carnes was convicted of Robbery with Firearms in North Carolina in November 1970. He allegedly escaped from prison on or about August 4, 1973. Following his alleged escape, Carnes allegedly lived under the identities of two different persons to avoid detection by law enforcement. Carnes also allegedly used the two identities to collect Social Security benefits and to apply for Iowa drivers’ licenses. During an April 14, 2014, search of Carnes’ residence in Waterloo, Iowa, law enforcement agents allegedly found certified copies of birth certificates for both identities as well as a handgun and ammunition.If convicted on all charges Carnes faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of thirty-four years’ imprisonment, as well as a fine, $700 in special assessments, and supervised release following any imprisonment.
Carnes appeared today in federal court in Cedar Rapids and was held without bond. Carnes’ next appearance for a status hearing is set for August 27, 2014. Trial is set for September 22, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by Social Security Administration, Office of the Inspector General, Office of Investigations, the Waterloo Police Department, and the Iowa Department of Transportation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-2033.
Lower Brule Man Charged with Robbery of MailRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Robbery of Mail.
Elmer LaRoche, age 27, was indicted on July 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 22, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 27, 2014, LaRoche assaulted a U.S. postal employee who has lawful charge, custody and control of United States mail and other property of the United States, with intent to rob mail and other property. In doing so, LaRoche put the life of the employee in jeopardy by the use of a dangerous weapon.
The charge is merely an accusation and LaRoche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
LaRoche was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lake Charles Woman Pleads Guilty to Stealing More Than $250,000 from Her EmployerRead the Press Release
LAKE CHARLES, La. –A Lake Charles woman pleaded guilty to stealing more than a quarter of a million dollars from her employer, U.S. Attorney Stephanie A. Finley announced today.
Kristen Brady, 47, of Lake Charles, pleaded guilty before U.S. District Judge Patricia Minaldi to one count of bank fraud. According to the evidence presented at the guilty plea, Brady worked for a Lake Charles rental company as a bookkeeper for 12 years before her employment was terminated in November 2013. It was later discovered that she had forged authorizing signatures on more than 200 checks to her benefit in the company’s name, and in the process, received $255,324.04 of which she was not entitled.
“Criminals should know that we will prosecute those who steal from local businesses,” Finley stated. “Brady now will face the consequences of her actions.”
Brady faces a maximum penalty of 30 years in prison, five years of supervised release, restitution and a $1 million fine. A sentencing date of October 30, 2014 was set.
The U.S. Secret Service and the Lake Charles Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
Justice Department Issues Joint Statement of Principles with City of Albuquerque, New Mexico, to Reform Albuquerque Police DepartmentRead the Press Release
The Justice Department today announced it has signed a joint statement of principles with the city of Albuquerque, New Mexico, that reflects the good-faith intent of both sides to enter into a court-enforceable agreement to reform the Albuquerque Police Department (APD). The joint statement of principles publicly specifies the measures that the department and the city are undertaking in order to resolve the findings resulting from the department’s investigation into use of force by APD. On April 10, 2014, following an extensive investigation, the department found reasonable cause to believe that APD engages in a pattern or practice of use of excessive force, including unreasonable deadly force.
Following the release of the findings letter the department and the city each separately reached out to numerous stakeholders across Albuquerque to hear their ideas and concerns about the reform of APD. Attorneys and staff of the department have spoken to police officers, city officials, mental health service providers, advocacy organizations, individuals who have been personally affected by APD’s past conduct and other community members. The department has held dozens of meetings and met with hundreds of people across the city. Through these efforts, both sides have gained important insights into officers’ and the community’s concerns that will shape the final agreement. The department is encouraged by the feedback it has received and is committed to sustainable reforms that will ensure APD delivers services in a manner that respects the rights of residents, promotes mutual confidence between the police and the community and improves public and officer safety.
“This agreement marks an important step forward in addressing the unreasonable use of deadly force uncovered in our investigation into the Albuquerque Police Department," said Attorney General Eric Holder. "The residents of Albuquerque depend on their police department to serve their community with honor and integrity. In the overwhelming majority of cases, our dedicated local law enforcement officials – who put their lives on the line every day— do just that. But when misconduct does occur, we will never hesitate to act in order to secure the civil rights of everyone in this country. As a result of our ongoing action, I am confident that the Albuquerque Police Department will be able to correct troubling practices, restore public trust, and better protect its citizens against all threats and dangers - while providing the model of professionalism and fairness that all Americans deserve.”
“We commend the city for engaging in good-faith negotiations to reach a court-enforceable agreement that will ensure sustainable reforms of APD,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The joint statement of principles provides the community with our commitment to work expeditiously with the city to craft a durable agreement that will resolve our findings and will ensure that APD provides effective and constitutional policing to the people of Albuquerque.”
“Since the release of DOJ’s findings letter, we have asked for and received valuable ideas and insights from officers, members of the community, representatives of many organizations, and others who have a stake in the future of our community,” said U.S. Attorney Damon Martinez for the District of New Mexico. “We are thankful to everyone who has spoken to us. The anticipated final court-enforceable agreement, which we hope to enter into with the city of Albuquerque, is already stronger because of the input we have received.”
The department and city have released the joint statement of principles to inform APD officers and the Albuquerque community that their concerns and ideas have been heard and that their ongoing participation will be critical to achieving sustainable reform. Specifically, the joint statement of principles announces that the department and the city expect to develop reforms in the eight areas outlined in the department’s findings letter: use of force policies, interactions with individuals with mental illness and other disabilities, tactical units, training, internal investigations and civilian complaints, management and supervision, recruitment and selection of officers, and community engagement and oversight. The joint statement of principles also indicates that the goal is to reach a court-enforceable agreement that will be overseen by an independent monitor.
During the negotiation process, the department remains interested in obtaining recommendations and information related to reforms from the public. The department continues to monitor the APD community hotline, which is available for both English and Spanish speakers, 1-855-544-5134 and the APD community email address.
The department’s full report on its investigation of APD and other related information can be found at the U.S. Attorney’s Office for the District of New Mexico website and at the department website . For more information about the Civil Rights Division, please visit the division website .
Justice Department Issues Joint Statement of Principles with City of Albuquerque, New Mexico, to Reform Albuquerque Police DepartmentRead the Press Release
ALBUQUERQUE – The Justice Department (DOJ) today announced it has signed a joint statement of principles with the City of Albuquerque, New Mexico, which reflects the good-faith intent of both sides to enter into a court-enforceable agreement to reform the Albuquerque Police Department (APD). The joint statement of principles publicly specifies the measures that DOJ and the City are undertaking in order to resolve the findings resulting from DOJ’s investigation into use of force by APD. On April 10, 2014, following an extensive investigation, DOJ found reasonable cause to believe that APD engages in a pattern or practice of use of excessive force, including unreasonable deadly force.
Following the release of the findings letter DOJ and the City each separately reached out to numerous stakeholders across Albuquerque to hear their ideas and concerns about the reform of APD. Attorneys and staff of the department have spoken to police officers, city officials, mental health service providers, advocacy organizations, individuals who have been personally affected by APD’s past conduct and other community members. DOJ has held dozens of meetings and met with hundreds of people across the city. Through these efforts, both sides have gained important insights into officers’ and the community’s concerns that will shape the final agreement. DOJ is encouraged by the feedback it has received and is committed to sustainable reforms that will ensure APD delivers services in a manner that respects the rights of residents, promotes mutual confidence between the police and the community and improves public and officer safety.
“This agreement marks an important step forward in addressing the unreasonable use of deadly force uncovered in our investigation into the Albuquerque Police Department,” said Attorney General Eric Holder. “The residents of Albuquerque depend on their police department to serve their community with honor and integrity. In the overwhelming majority of cases, our dedicated law enforcement officials – who put their lives on the line every day – do just that. But when misconduct does occur, we will never hesitate to act in order to secure the civil rights of everyone in this country. As a result of our ongoing action, I am confident that the Albuquerque Police Department will be able to correct troubling practices, restore public trust, and better protect its citizens against all threats and dangers – while providing the model of professionalism and fairness all Americans deserve.”
“We commend the city for engaging in good-faith negotiations to reach a court-enforceable agreement that will ensure sustainable reforms of APD,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The joint statement of principles provides the community with our commitment to work expeditiously with the city to craft a durable agreement that will resolve our findings and will ensure that APD provides effective and constitutional policing to the people of Albuquerque.”
“Since the release of DOJ’s findings letter, we have asked for and received valuable ideas and insights from officers, members of the community, representatives of many organizations, and others who have a stake in the future of our community,” said U.S. Attorney Damon Martinez for the District of New Mexico. “We are thankful to everyone who has spoken to us. The anticipated final court-enforceable agreement, which we hope to enter into with the city of Albuquerque, is already stronger because of the input we have received.”
DOJ and the City have released the joint statement of principles to inform APD officers and the Albuquerque community that their concerns and ideas have been heard and that their ongoing participation will be critical to achieving sustainable reform. Specifically, the joint statement of principles announces that DOJ and the City expect to develop reforms in the eight areas outlined in the department’s findings letter: use of force policies, interactions with individuals with mental illness and other disabilities, tactical units, training, internal investigations and civilian complaints, management and supervision, recruitment and selection of officers, and community engagement and oversight. The joint statement of principles also indicates that the goal is to reach a court-enforceable agreement that will be overseen by an independent monitor. A copy of the complete joint statement of principles is attached.
During the negotiation process, DOJ remains interested in obtaining recommendations and information related to reforms from the public. DOJ continues to monitor the APD community hotline, which is available for both English and Spanish speakers, 1-855-544-5134 and the APD the APD community email address: [email protected].
DOJ’s full report on its investigation of APD and other related information can be found at the U.S. Attorney’s Office website http://www.justice.gov/usao/nm/APD.html and at DOJ’s website http://justice.gov/crt/about/spl/findsettle.php. For more information about the Civil Rights Division, please visit the http://www.justice.gov/crt/index.php.
Justice Department Issues Joint Statement of Principles with City of Albuquerque, New Mexico, to Reform Albuquerque Police DepartmentRead the Press Release
ALBUQUERQUE – The Justice Department (DOJ) today announced it has signed a joint statement of principles with the City of Albuquerque, New Mexico, which reflects the good-faith intent of both sides to enter into a court-enforceable agreement to reform the Albuquerque Police Department (APD). The joint statement of principles publicly specifies the measures that DOJ and the City are undertaking in order to resolve the findings resulting from DOJ’s investigation into use of force by APD. On April 10, 2014, following an extensive investigation, DOJ found reasonable cause to believe that APD engages in a pattern or practice of use of excessive force, including unreasonable deadly force.
Following the release of the findings letter DOJ and the City each separately reached out to numerous stakeholders across Albuquerque to hear their ideas and concerns about the reform of APD. Attorneys and staff of the department have spoken to police officers, city officials, mental health service providers, advocacy organizations, individuals who have been personally affected by APD’s past conduct and other community members. DOJ has held dozens of meetings and met with hundreds of people across the city. Through these efforts, both sides have gained important insights into officers’ and the community’s concerns that will shape the final agreement. DOJ is encouraged by the feedback it has received and is committed to sustainable reforms that will ensure APD delivers services in a manner that respects the rights of residents, promotes mutual confidence between the police and the community and improves public and officer safety.
“This agreement marks an important step forward in addressing the unreasonable use of deadly force uncovered in our investigation into the Albuquerque Police Department,” said Attorney General Eric Holder. “The residents of Albuquerque depend on their police department to serve their community with honor and integrity. In the overwhelming majority of cases, our dedicated law enforcement officials – who put their lives on the line every day – do just that. But when misconduct does occur, we will never hesitate to act in order to secure the civil rights of everyone in this country. As a result of our ongoing action, I am confident that the Albuquerque Police Department will be able to correct troubling practices, restore public trust, and better protect its citizens against all threats and dangers – while providing the model of professionalism and fairness all Americans deserve.”
“We commend the city for engaging in good-faith negotiations to reach a court-enforceable agreement that will ensure sustainable reforms of APD,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The joint statement of principles provides the community with our commitment to work expeditiously with the city to craft a durable agreement that will resolve our findings and will ensure that APD provides effective and constitutional policing to the people of Albuquerque.”
“Since the release of DOJ’s findings letter, we have asked for and received valuable ideas and insights from officers, members of the community, representatives of many organizations, and others who have a stake in the future of our community,” said U.S. Attorney Damon Martinez for the District of New Mexico. “We are thankful to everyone who has spoken to us. The anticipated final court-enforceable agreement, which we hope to enter into with the city of Albuquerque, is already stronger because of the input we have received.”
DOJ and the City have released the joint statement of principles to inform APD officers and the Albuquerque community that their concerns and ideas have been heard and that their ongoing participation will be critical to achieving sustainable reform. Specifically, the joint statement of principles announces that DOJ and the City expect to develop reforms in the eight areas outlined in the department’s findings letter: use of force policies, interactions with individuals with mental illness and other disabilities, tactical units, training, internal investigations and civilian complaints, management and supervision, recruitment and selection of officers, and community engagement and oversight. The joint statement of principles also indicates that the goal is to reach a court-enforceable agreement that will be overseen by an independent monitor. A copy of the complete joint statement of principles is attached.
During the negotiation process, DOJ remains interested in obtaining recommendations and information related to reforms from the public. DOJ continues to monitor the APD community hotline, which is available for both English and Spanish speakers, 1-855-544-5134 and the APD the APD community email address: [email protected].
DOJ’s full report on its investigation of APD and other related information can be found at the U.S. Attorney’s Office website http://www.justice.gov/usao/nm/APD.html and at DOJ’s website http://justice.gov/crt/about/spl/findsettle.php. For more information about the Civil Rights Division, please visit the http://www.justice.gov/crt/index.php.
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Jury Finds Sacramento Man Guilty of Conspiracy and Money Laundering in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — After a six–day trial in a mortgage fraud case, a federal jury found Leonard E. Williams, 52, of Sacramento, guilty today of conspiracy to commit mail and wire fraud and two counts of money laundering, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge William B. Shubb.
According to evidence presented at trial, from late 2006 into 2008, Williams conspired with others to carry out a mortgage fraud scheme in the Chico and Sacramento areas using his companies Diamond Hill Financial and Bay Area Real Estate Holdings. The scheme resulted in the issuance of more than $2 million in home loans, with most of the buyers ultimately defaulting.
To carry out the scheme, Williams and his partner Joshua Clymer recruited underqualified buyers, including family and friends, to purchase homes with promises of cash back, no money down, and illusory equity in the homes. Williams and his co-conspirators assisted these home buyers in securing loans with fraudulent loan applications that contained lies about the buyers’ employment, income, assets, and intent to occupy the homes as a primary residence. In most cases, at Williams’ suggestion and encouragement, the loan applications falsely stated that the buyers worked at Diamond Hill Financial, and Williams himself maintained the charade by confirming this false information when lenders called to verify it.
The loan applications also listed false assets and were accompanied by various forged documents, including altered bank statements, fake W-2s, fake paystubs, and false gift letters and affidavits. Williams and his coconspirators also misled lenders about the true purchase price of the homes by fraudulently indicating down payments were made when in fact they were not, and giving cash back to buyers outside of escrow, without disclosing these facts to the lenders. These lies had the effect of increasing the amount of the loans to the buyers, which in turn increased the profits of the fraud to Williams, Clymer, and others. The profit to Williams and Clymer varied from $5,000 to over $30,000 per transaction, with the two of them often splitting the proceeds.
“Fraud like that committed by Williams and his co-conspirators was an unnecessary contributor to the financial crisis that had such a serious impact on our country, and our communities in Northern California in particular,” said United States Attorney Wagner. “Even though the flood of foreclosures resulting from that crisis has started to subside, this conviction is evidence of the continuing commitment by my office and our federal and local law enforcement partners to hold accountable those who sought to profit by engaging in mortgage fraud.”
“Victims of mortgage fraud may include the banks that loan the money, but also include all homeowners and would-be homeowners who end up paying for this type of fraud,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “IRS-CI is committed to pursuing those who line their pockets with profits from these schemes.”
Judge Shubb remanded Williams into custody pending sentencing. Prior to trial, co-defendant Joshua Clymer pleaded guilty to conspiracy to commit mail and wire fraud and awaits sentencing.
This case is the product of an investigation by the Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigations, and the Butte County District Attorney’s Office’s Major Crimes Unit. Williams is the last of 14 defendants who have been convicted of mortgage fraud offenses in connection with this and related cases. Others who already been convicted and sentenced include William E. Baker, Shane Burreson, Christopher M. Chiavola, Carlos Chamorro, Eric Clawson, Niche Fortune, Garret Gililland, Kesha Haynie, Remy Heng, Nicole Magpusao, Brandon Resendez, and Anthony Symmes. Twelve of the defendants pleaded guilty. Juries have convicted the two defendants who went to trial, Williams and Haynie. Assistant United States Attorneys Christopher S. Hales and Audrey B. Hemesath are prosecuting the case.
Williams is scheduled to be sentenced by Judge Shubb on October 27, 2014. Williams faces a maximum statutory penalty of 20 years in prison for conspiracy to commit mail and wire fraud, and 10 years in prison and a $250,000 fine for each count of money laundering. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
July Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 25 indictments charging 27 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Filimon Abarca-Gallardo, age 33, of Ralston, Nebraska, is charged with illegal reentry into the United States on or about July 16, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Carlos Barrios-Perez, age 41, of Omaha, is charged with illegal reentry into the United States on or about June 11, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Eric-Arnaud Benjamin Briere De L’Isle, age 32, of Atlanta, Georgia, is charged with intent to defraud and possession of 15 or more counterfeit and unauthorized access devices on or about June 20, 2014. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* James M. Brunzo, Jr., age 48, of Omaha, is charged with possession with intent to distribute 50 grams or more of methamphetamine on or about June 23, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Adam M. Crom, age 28, of Bellevue, Nebraska, is charged with distribution of 5 grams or more of methamphetamine on or about July 1, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Melissa S. Edwards, age 41, of Sioux City, Iowa, is charged with theft of government money and property. The defendant allegedly converted to her own use more than $150,000 of currency and property from the Department of Housing and Urban Development. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Amancio Estrada-Martias, age 48, is charged with illegal reentry into the United States on or about June 25, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Angel Felix Gurrola, age 34, is charged with possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about July 2, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Jerrell D. Jackson, age 25; of Omaha, is charged with being a felon in possession of a firearm on or about March 28, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Mario Alberto Jimenez-Becerril , age 49, is charged with illegal reentry into the United States on or about July 3, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Breidi Josue, also known as Breidi Gonzalez-Canaca, age 27, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about July 27, 2012. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges that on or about July 27, 2012, Josue misused a Social Security Card and a State of Nebraska non driver’s License, knowing that said documents were not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment alleges on or about July 27, 2012, the defendant made a false statement and claimed to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* James C. Lebo, age 45, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt and distribution of child pornography from at least on or about December 1, 2013, to on or about June 18, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for life, and a $100 special assessment. Lebo is charged in Count II with possession of child pornography from on or about June 8, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for life, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of this violation should be forfeited to the United States.
* Juan Reynaldo Medina-Parra, also known as Eliseo Medina-Garcia, age 37, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and a mixture or substance containing a detectable amount of heroin from an unknown date but at least as early as May 2012, and continuing to in or about October 2012. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Medina-Parra with money laundering from an unknown date but at least as early as May 2012, and continuing to in or about October 2012. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Pedro Mejia-Guardado, age 30, of Omaha, is charged with illegal reentry into the United States on or about June 13, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Victor Pascual-Villa, age 27; Jose Erives-Rios, age 24; and Amber Hughes, age 32 are charged in a two-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine beginning on or about July 1, 2013, and continuing to on or about June 4, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges that on or about June 4, 2014, Pascual-Villa possessed a North American Arms Guardian .380 firearm, during and in relation to, and in furtherance of the drug trafficking offense alleged in Count I. The maximum possible penalty is imprisonment of not less than 5 years and up to life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment, or property used to facilitate the violation, including but not limited to $9,045.00 in United States currency should be forfeited to the United States.
* Froilan Penaloza-Gutierres, also known as Horacio Lozano-Gutierrez, age 31, of Omaha, is charged with illegal reentry into the United States on or about July 3, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Cesar Reyes-Garcia, age 25, of Omaha, is charged with illegal reentry into the United States on or about July 15, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* David Roberts, age, 41, of Omaha, is charged with ten counts of wire fraud from at least June, 2011, and continuing through at least February, 2012. It is alleged that Roberts fraudulently received checks purported to be payments for purchases for services and products, in the approximate amount of $91,669.81 The maximum possible penalty for each of these counts if convicted is 20 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.* Salvador Sanchez-Barron, age 28, of Lincoln, is charged with illegal reentry into the United States on or about December 16, 2013, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Paul M. Tegeler, age 67, of Lexington, Nebraska, is charged with coercion and online enticement of a minor on or about April 23, 2014, and continuing until May 3, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for life, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of this violation should be forfeited to the United States.
* Luciano Tobar-Tobar, age 42, of Omaha, is charged with illegal reentry into the United States on or about July 15, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Randall W. Toothaker, age 57, of Lincoln, is charged with theft of Government property from the United States Department of Veteran Affairs on July 26, 2013. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release and a $100 special assessment.
* Bernard Randolph Turner, Jr., is charged with being a felon in possession of a firearm on or about June 13, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Francisco Vasquez-Chavez, age 43, of Fremont, Nebraska, is charged with illegal reentry into the United States on or about July 10, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Hugo Vicente-Vicente, age 29, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about August 17, 2013, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.Jicarilla Apache Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Robert Yazzie, Jr., 48, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., pleaded guilty this morning to a federal assault charge arising out of a violent attack on his intimate partner.
Yazzie was arrested on May 27, 2014, on an indictment charging him with assault resulting in serious bodily injury. The indictment alleged that Yazzie assaulted the victim on May 17, 2013, and caused her to suffer serious bodily injury.
During today’s proceedings, Yazzie pled guilty to the indictment and admitted assaulting his intimate partner by hitting her in the face and head multiple times with a closed fist. Yazzie acknowledged that as a result, the victim sustained bilateral nasal bone fractures and hematomas to the head and face. The assault occurred within the Jicarilla Apache Nation.
Yazzie has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Yazzie faces a statutory maximum penalty of ten years in prison.
This case was investigated by the Jicarilla Apache Tribe Police Department and is being prosecuted by Special Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Jayne Concialdi Pleads Guilty to White River Junction EmbezzlementRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jayne Concialdi, 51, a former resident of Quechee who now lives in Connecticut, pleaded guilty today in United States District Court in Burlington to a charge of wire fraud. U.S. District Judge William K. Sessions III released Concialdi on conditions pending sentencing, which is set for December 1.
On June 19, 2014, the United States filed a one-count information charging Concialdi with wire fraud. Today, Concialdi pled guilty to the information. According to the information, Concialdi was employed as an administrative assistant to the treasurer of New England Research, Inc., a company in White River which specializes in the measurement and interpretation of rock properties for the energy industry. Concialdi had bookkeeping responsibilities. Between 2011 and early 2014, Concialdi misappropriated about $125,000 from her employer, primarily by using company funds to pay her personal credit card obligations. The defendant also misused company credit cards to make purchases for her own benefit. NERI uncovered the embezzlement this past February.
Concialdi faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Hartford Police Department and the Federal Bureau of Investigation.
Concialdi is represented by Jordana Levine. The prosecutor is Assistant U.S. Attorney Gregory WaplesJamesville Man Enters Guilty Plea to Conspiracy to Commit Bank FraudRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that DAVID PIZIO (58, of Jamesville, NY) entered a guilty plea in U.S. District Court to the felony offense of conspiracy to commit bank fraud. The defendant is facing a statutory maximum of 30 years imprisonment and a maximum fine of $1,000,000.00. PIZIO is scheduled to be sentenced on December 5, 2014, before the Honorable David N. Hurd in Utica, NY.
During the plea hearing on July 24, 2014, PIZIO admitted he was one of the owners of Syracuse Suburban Airport, LLC (“SSA”). In 2004, SSA purchased a 93 acre reliever airport site in Hastings, New York for $350,000.00. Between 2004 and 2009, SSA received five Federal Aviation Administration (“FAA”) grants totaling approximately $2,973,621.00 to be used for planning and development at the reliever airport in Hastings.
On April 29, 2005, SSA obtained a line of credit from First Niagara Bank in the amount of $650,000.00. The line of credit agreement stated that the loan proceeds were to be used by SSA only for airport expenditures reimbursable by the FAA through the grants. The line of credit agreement specifically listed DAVID PIZIO as one of the persons authorized to make requests for loans under the line of credit. PIZIO was authorized to sign for all bank accounts bearing the name of SSA, including the First Niagara line of credit.
$125,000.00 to a Texas real estate project
On December 13, 2005, PIZIO submitted an invoice to First Niagara Bank for the release of loan proceeds in the amount of $125,000.00 for the purchase of airport equipment. On that same day, First Niagara Bank transferred $125,000.00 into SSA’s checking account at First Niagara Bank. PIZIO never intended to use the $125,000.00 to purchase airport equipment. Instead, PIZIO invested the $125,000.00 in a Texas real estate project without the knowledge or consent of First Niagara Bank.
$97,604.00 to the Upstate New York Bean Company
In 2006, PIZIO opened an investment brokerage account in the name of Gildner Road Associates (“GRA”). GRA was a corporation owned by PIZIO. Thereafter, PIZIO submitted an invoice to First Niagara Bank for the release of funds in the amount of $97,604.00 for the purchase of airport equipment. On that same day, First Niagara Bank transferred $97,604.00 into SSA’s checking account at First Niagara Bank. PIZIO never intended to use the $97,604.00 to purchase airport equipment. Instead, PIZIO transferred $96,000.00 from the GRA checking account to the investment account without the knowledge or consent of First Niagara Bank. In June of 2006, PIZIO transferred the money to the Upstate New York Bean Company. In 2006, PIZIO was affiliated with the Upstate New York Bean Company located in Marcellus, New York. In June 2006, PIZIO received First Niagara Bank loan proceeds in the form of checks from the Upstate New York Bean Company. The Upstate New York Bean Company is currently out of business.
This prosecution resulted from an investigation conducted by the U.S. Department of Transportation-Office of Inspector General, and the Federal Bureau of Investigations. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).
Investigation Results in 7 Indicted in North Louisiana Cocaine ConspiracyRead the Press Release
SHREVEPORT, La. –A two-year-long undercover investigation has resulted in the seizure of more than $517,000 in cash and seven people being charged for conspiracy to distribute cocaine, firearm violations, and other related drug charges in parishes across north Louisiana, U.S. Attorney Stephanie A. Finley announced today.
A grand jury delivered a 24-count indictment Wednesday against Quincy D. Hoover, 39, and Quwanda L. Forest, 35, both of Natchez, La.; Jesse C. Thomas, 30 of Haynesville, La.; Rodney J. Raymond, 35, of Natchitoches, La.; Shannon D. Jenkins, 34, and Carlos C. Jenkins, 36 both of Ruston, La, and another individual who is at large.
From June 2012 to July 2014, the defendants conspired to distribute cocaine throughout Lincoln, Claiborne, Natchitoches, Sabine, DeSoto, Bossier and Caddo parishes with the source cities for the cocaine being Houston and Dallas. Controlled purchases by law enforcement of cocaine powder and crack cocaine were made from several dealers during the investigation. Federal and local law enforcement officials arrested five of the defendants on July 1, 2014 in the northwest Louisiana area, in which more than a half a million dollars in cash, firearms, 16 pounds of marijuana and other items were seized.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation code named “Pit Stop.” The Drug Enforcement Administration (DEA), U.S. Marshals Service, U.S. Immigrations and Customs Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisiana State Police, Lincoln Parish Sheriff’s Office, Ruston Police Department, Claiborne Parish Sheriff’s Office, Natchitoches Parish Sheriff’s Office, Natchitoches Police Department, Sabine Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, Bossier City Police Department, Shreveport Police Department, Caddo Parish Sheriff’s Office, all participated in this OCDETF operation. Assistant U.S. Attorneys James G. Cowles Jr. and Cytheria Jernigan are prosecuting the case.
"The U.S. Attorney=s Office, along with our federal, state, and local partners, is committed to keeping our communities safe,” Finley stated. “Breaking up this drug distribution ring is a huge step in countering the flow of these illegal substances into the community. I want to thank all the agencies who have partnered with us on this operation and who continue to work to enforce both federal and state narcotics laws."
“The indictments, arrests, and seizures in this investigation are the direct result of outstanding partnerships with federal, state, and local law enforcement,” stated DEA Assistant Special Agent in Charge Joseph Shepherd. “DEA, along with our federal, state, and local law enforcement partners, will continue to pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs such as cocaine and marijuana. The abuse of these drugs can have devastating health and societal effects, and these arrests strike a significant blow to the illegal drug trafficking trade in this community.”
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Individual Who Provided False Statements Regarding Attempted Support of Extremist Group Pleads Guilty and Is SentencedRead 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 the conviction and sentencing of Soloman Zaid Alkadhi, 24, of Plantation. On April 24, 2014, Alkadhi pled guilty to a one count information charging him with providing a false statement to Special Agents of the FBI in a matter involving international terrorism, in violation of Title 18, United States Code, Section 1001(a)(2). Alkadhi was sentenced yesterday by U.S. District Judge Joan A. Lenard to 60 months in prison, followed by three years of supervised release.
In October 2009, Alkadhi denied to FBI agents that he planned to travel to Somalia to join and provide assistance to al-Shabaab, a designated foreign terrorist organization. According to court documents, Alkadhi planned to travel to Somalia to join and provide assistance to the extremist group. Alkadhi acknowledged that after conducting online research into al-Shabaab and its efforts to wage jihad, he traveled from Florida to Kenya and then attempted to cross the Kenyan-Somalian border in an effort to join and provide assistance to that organization.
Mr. Ferrer commended the outstanding investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Adam Fels, with assistance of Trial Attorney Jerome Teresinski of the United States Department of Justice, National Security Division, Counterterrorism Section.
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.
Hubbard, Iowa, Woman Pleads Guilty to Bank FraudRead the Press Release
Woman Also Pleads Guilty To Unlawful Manufacture and Possession of a Department of Justice Seal
A woman who forged a court order for a purported structured settlement in support of her request for a bank loan, and who forged a separate letter purporting to be from a United States Department of Justice official, pled guilty on July 23, 2014, in federal court in Cedar Rapids.
Stephanie Drake (formerly known as Stephanie Drake-Zierke), age 50, from Hubbard, Iowa, was convicted of one count of bank fraud and one count of unlawful manufacture and possession of a United States Department of Justice seal.
In a plea agreement, Drake admitted that, between about March 2009 and September 2012, she fraudulently induced a bank to loan her money by falsely claiming that her husband had been awarded a legal settlement in the amount of $2,200,000. Drake also admitted presenting a fabricated document to the bank purporting to be a court order for the legal settlement. Drake also admitted defrauding the same bank by presenting falsified loan paperwork indicating her husband’s parents had agreed to guarantee a loan of up to $162,600. Drake admitted that, between May 2008 and September 2012, the bank loaned her a total of at least $483,513.51. Drake admitted her conduct resulted in a loss to the bank of more than $400,000.
Also in the plea agreement, Drake admitted that, in about January of 2012, she unlawfully manufactured and possessed a seal of the United States Department of Justice. Drake admitted she forged a letter to her husband, dated January 23, 2012, that bore the seal and purported to be from the United States Attorney for the Northern District of Iowa. Drake admitted forging the letter in an attempt to substantiate a false claim that her husband was cooperating with federal authorities in a theft investigation.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Drake remains free on bond pending sentencing. Drake faces a possible maximum sentence of 30 years’ and 6 months’ imprisonment, a $1,005,000 fine, $110 in special assessments, and 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Federal Bureau of Investigation and the Hardin County, Iowa, 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-2032.
Hopi Man Indicted on Charges of Aggravated Sexual Abuse of MinorsRead the Press Release
PHOENIX – On July 22, 2014, a federal grand jury returned a four-count indictment against Ross Stetson Tewangoitewa, 67, of Shungopavi Village, Ariz., for aggravated sexual abuse of a minor.
A conviction for aggravated sexual abuse of a minor carries a maximum penalty of life in prison, a $250,000 fine, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
CASE NUMBER: CR-14-8139-SPL (DKD)
RELEASE NUMBER: 2014-042_TewangoitewaFor 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.Hill City Man Sentenced to 100 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Hill City, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on July 17, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Hugo Arechiga-Torres, age 33, was sentenced to 100 months in custody, 10 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Arechiga-Torres was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on April 4, 2012, and he pled guilty on January 3, 2014.
Beginning in June 2010 until April 4, 2012, Arechiga-Torres received pound quantities of methamphetamine in South Dakota. During that time, Arechiga-Torres and the individuals supplying and transporting the methamphetamine conspired and agreed with others to distribute more than 500 grams of methamphetamine in South Dakota.
This case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Drug Enforcement Administration, South Dakota Division of Criminal Investigation, Minnesota Bureau of Criminal Apprehension, Sioux Falls Area Drug Task Force, and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Arechiga-Torres was immediately turned over to the custody of the U.S. Marshals Service.
Hazleton Man Sentenced to Federal Prison on Drug ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Hazleton man was sentenced yesterday, in federal court in Scranton, by United States District Judge Robert Mariani, to serve 46 months in prison on a charge of conspiracy to distribute cocaine.
According to United States Attorney Peter Smith, Juan Carlos Alvarez, age 28, a resident of Hazleton, pleaded guilty to the charge in March of this year. Alvarez was ordered to serve an additional 3 years’ under court supervision upon his release from prison.
Alvarez was charged after an investigation conducted by the United States Drug Enforcement Administration, the Hazleton Police Department and the Butler Township Police Department.
The case was prosecuted by Assistant United States Attorney William S. Houser.
Hampton County Woman Sentenced in Drug Related ShootingRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that Roqel Connors, age 23, of Garnett, South Carolina was sentenced today in federal court in Charleston, South Carolina, for discharging a firearm in relation to a drug trafficking crime, a violation of 18 U.S.C. § 924(c). Senior United States District Judge Sol Blatt, Jr. of Charleston sentenced Connors to 10 years to be followed by 5 years supervised release.
Evidence presented at the change of plea hearing established that on December 11, 2011, Connors arranged to sell marijuana to a man in Beaufort, SC. As Connors was conducting the transaction with an individual in the back seat of a vehicle, an argument ensued and Connors fired her Glock handgun into the vehicle. The shot fired by Connors struck the driver of the vehicle, Mark Kevin Jones, in the back of the head, killing Jones.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosive and Beaufort County Sheriff's Office. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.Hacker Charged with Breaching Multiple Government Computers and Stealing Thousands of Employee and Financial RecordsRead the Press Release
ALEXANDRIA, Va. – Lauri Love, 29, of Stradishall, England, was indicted today by a federal grand jury in the Eastern District of Virginia on charges of conspiracy, causing damage to a protected computer, access device fraud and aggravated identity theft.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; John R. Hartman, Deputy Inspector General for Investigations at the U.S. Department of Energy (DOE); and Stephen Niemczak, Special Agent in Charge, Computer Crimes Unit at the Office of Inspector General, U.S. Department of Health and Human Services (HHS), made the announcement.
According to the indictment, beginning around October 2012, Love and his conspirators accessed without authorization protected computers belonging to DOE, HHS, U.S. Sentencing Commission, FBI’s Regional Computer Forensics Laboratory, Deltek, Inc. and Forte Interactive, Inc. Love and his conspirators gained unauthorized access to the protected computers by exploiting a known vulnerability in Adobe ColdFusion, a software program designed to build and administer websites and databases. The vulnerability, which has since been corrected, allowed Love and his conspirators to access protected areas of the victims’ computer servers without proper login credentials—in other words, to bypass security on the protected computers.
After gaining unauthorized access to the protected servers, Love and his conspirators obtained administrator-level access to the networks using custom file managers, which allowed the conspirators to upload and download files, as well as create, edit, remove and search for data. Love unlawfully obtained massive amounts of sensitive and confidential information stored on those computers, including more than 100,000 employee records with names, Social Security numbers, addresses, phone numbers and salary information, along with more than 100,000 financial records, including credit card numbers and names. Love’s actions caused total losses in excess of $5 million.
The investigation was led by the FBI’s Washington Field Office, in conjunction with the Inspectors General for the United States Department of Energy, United States Department of Health and Human Services, and the United States Postal Service. Assistant U.S. Attorneys Ryan K. Dickey and Jay V. Prabhu are prosecuting the case.
Love faces a maximum penalty of ten years in prison if convicted of the offenses charged in Virginia. He also faces a mandatory additional two years in prison if convicted of aggravated identity theft. Love also is the subject of separate indictments on related charges in the District of New Jersey and the Southern District of New York.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-258.
Four Individuals Sentenced in Federal Program Fraud CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that four individuals convicted of Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds or Theft Concerning Programs Receiving Federal Funds have been sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
The last defendant to be sentenced was Wayne Wilson Cortier, age 45, of Pine Ridge. He was sentenced on July 21, 2014, to 1 year of probation, and was ordered to make restitution of $27,620, $25,550 of which is joint and several with co-defendant Samone Milk.
Heather Marie Garcia, age 31, and Joe Marquios Garcia, age 35, both of Pine Ridge, were sentenced on June 30, 2014. Heather Garcia was sentenced to 5 years of probation. Joe Garcia was sentenced to 15 months in custody, to be followed by 3 years of supervised release. Both were ordered to make restitution of $83,585, jointly and severally with Milk.
Samone Darla Milk, age 33, of Martin, was sentenced on May 6, 2014, to 14 months in custody, to be followed by 3 years of supervised release. She was ordered to make restitution of $109,135.“I commend the Department of Health and Human Services, Office of Investigations for their diligent work in this case. The theft of federal funds is serious in any case, but is even more significant in situations like this where it impacts people who rely on these programs for some of their basic needs,” said U.S. Attorney Johnson.
On October 8, 2013, a federal grand jury indicted Milk, Heather Garcia, Joe Garcia, and Cortier for Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds. Additionally, Milk was also indicted for two counts of Theft Concerning Programs Receiving Federal Funds, and Heather Garcia, Joe Garcia, and Cortier were indicted on one count of that same charge. Milk pled guilty to the conspiracy charge on January 3, 2014. Cortier pled guilty to the theft charge on March 12, 2014. Heather Garcia pled guilty to the theft charge and Joe Garcia pled guilty to the conspiracy charge on March 13, 2014. The other charges for all four individuals were dismissed.
From May through December 2009, Milk and her co-conspirators formed an agreement to steal funds belonging to the Oglala Sioux Tribe. Milk was the executive secretary for the Tribe’s Energy/Low Income Home Energy Assistance Program (LIHEAP). Heather Garcia was employed by the Tribe’s Accounts Payable Department as a technician. Joe Garcia and Cortier were contractors for the Tribe. Using their positions, Milk and Heather Garcia drafted fake invoices and quotes for contract work purportedly to be completed by Joe Garcia and Cortier. Milk facilitated the processing of these documents through the Energy/LIHEAP program. Checks were issued by the Tribe’s Treasurer’s Office to pay for the fraudulent invoices. Milk and her co-conspirators received the checks, cashed them, and divided the funds among themselves to use for their own purposes.
Gerald T. Roy, Special Agent in Charge, Health and Human Services/Office of Inspector General, Office of Investigations, Kansas City, MO, stated, “Individuals who choose to misappropriate HHS funds intended for those in dire need will continue to be pursued by the OIG and their law enforcement partners.”
This case was investigated by the HHS/OIG, Office of Investigations. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Milk was ordered to turn herself in to the U.S. Marshals Service on or before May 27, 2014. Joe Garcia was remanded to the custody of the U.S. Marshals Service.
Forty-Two Individuals Arrested for Conspiracy to Manufacture MethamphetamineRead the Press Release
KNOXVILLE, Tenn.-- A federal grand jury in Knoxville returned five separate indictments on July 16, 2014, against 59 individuals involved in a conspiracy to manufacture methamphetamine. Those indicted include:
Randy N. Smith, 48, Caryville, Tenn.; Jeffrey S. Meadows, 34, LaFollette, Tenn.; Rebecca J. Burress, 31, Lake City, Tenn.; Robert W. Brumitt, 40, LaFollette, Tenn.; Carla D. Boshears, 21, LaFollette, Tenn.; Jason R. McKamey, 31, Lake City, Tenn.; Jill L. Higdon, 34, Lake City, Tenn.; Michael D. Leach, 44, Jacksboro, Tenn.; Sherri A. Elliot, 52, Caryville, Tenn.; Danny R. Phillips, 57, Caryville, Tenn.; Roger L. Moser, 34, Lake City, Tenn.; Joseph D. Harmon, 30, LaFollette, Tenn.; James Tyler Tomblin, 20, LaFollette, Tenn.; Michael J. Gill, 39, Lake City, Tenn.; Tiffany D. Bean, 24, Clinton, Tenn.; Samuel D. Miracle, 31, Briceville, Tenn.; Dustin A. Martin, 32, Clinton, Tenn.; Jonita L. Moore, 30, Briceville, Tenn.; Joseph L. O’Dell, 35, Jacksboro, Tenn.; David W. O’Dell, 36, Caryville, Tenn.; Kristen N. Vanover, 26, Briceville, Tenn.; James R. Golden, Jr., 37, Briceville, Tenn.; Starla Vella-Rae Boshears, 42, LaFollette, Tenn.; Amber B. Boshears, 24, LaFollette, Tenn.; Gina A. Austin, 36, Clinton, Tenn.; Danny R. Elliot, 30, Lake City, Tenn.; Dennis W. Leinart, 40, Briceville, Tenn.; Robert N. Hicks, 44, Oak Ridge, Tenn.; Amy M. Lowe, 35, LaFollette, Tenn.; Angela N. Bond, 22, Clinton, Tenn.; Virgie D. Hall, 30, Caryville, Tenn.; Katherine G. Wright, 39, Jackboro, Tenn.; Kassondra D. Lumley, 42, Jacksboro, Tenn.; Scott K. Duncan, 45, Clinton, Tenn.; Mary M. Coker, 46, Oak Ridge, Tenn.; Marsha L. Hill, 40, Jacksboro, Tenn.; Sheila D. Rice, 41, Jackboro, Tenn.; Wanda A. Hurst, 41, LaFollette, Tenn.; Rhonda D. Bailey, 28, Andersonville, Tenn.; Stewart H. Ridenour, 34, Andersonville, Tenn.; and, Penny L. Lane, 44, LaFollette, Tenn.
In addition, Smith, Meadows, Burress, Brumitt, Carla Boshears, McKamey, Higdon, Leach, Sherri Elliot, Phillips, Moser, Joseph Harmon, Bean, Joseph O’Dell, David O’Dell, Golden, Jr., Starla Boshears, Danny Elliot, Leinart, Lowe, and Bailey, were indicted for conspiring to distribute methamphetamine.
All of these individuals appeared in court between July 21, 2014, and July 24, 2014, before U.S. Magistrate Judge C. Clifford Shirley and pleaded not guilty to the charges in the indictment.
The investigation has shown that individuals involved were purchasing pseudoephedrine at local pharmacies and using that pseudoephedrine to manufacture methamphetamine at various locations in Anderson and Campbell counties.
If convicted, all face a minimum and mandatory term of 10 years in prison and a maximum term of life, a maximum fine of $10,000,000.00, and a term of supervised release of at least five years. All also face mandatory court assessments.
This indictment is the result of a multi-agency investigation including Anderson County Sheriff’s Office, Campbell County Sheriff’s Office, LaFollette Police Department, Lake City Police Department, Oak Ridge Police Department, 7th Judicial Drug Task Force, 8th Judicial Drug Task Force, TBI, 7th Judicial District Attorney General; 8th Judicial District Attorney General, U.S. Marshals Service, Tennessee Methamphetamine and Pharmaceutical Task Force, Tennessee Alcoholic Beverage Commission, and Drug Enforcement Administration. Assistant U.S. Attorney Caryn L. Hebets will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Former UNL Student Sentenced for Computer BreachRead the Press Release
United States Attorney Deborah R. Gilg announced that Daniel Stratman, age 23 of Omaha, Nebraska, was sentenced on July 24, 2014, in Lincoln, Nebraska, to 6 months in prison by United States District Judge John M. Gerrard for one count of Fraud and Related Activity in Connection with Computers. Stratman will be allowed work release while serving his prison sentence, and will then be required to serve a 3 year term of supervised release. He is also ordered to pay $107,722.58 in restitution.
A security breach of the University of Nebraska and the Nebraska State College System database was discovered in May of 2012. Investigation led law enforcement to Stratman, a senior at UNL at the time of the intrusion. A search warrant of his residence and forensic examination of his computers verified that Stratman had damaged the integrity of the protected computer systems and records maintained by the University of Nebraska and the Nebraska State College Systems.
This case was investigated by the University of Nebraska Police Department, the Lincoln Police Department, the Federal Bureau of Investigation, and the Office of the Inspector General, United States Department of Education.
Former Panhandle Business Owner Indicted for Tax FraudRead the Press Release
PENSACOLA, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that Patrick Alfred Anderson, 62, of Laughlin, Nevada, appeared in federal court today following his indictment in the Northern District of Florida and arrest in Laughlin, Nevada, on charges of filing false individual and corporate tax returns.
The indictment alleges that Anderson, while a resident of Niceville, Florida, filed false individual and corporate federal income tax returns for the years 2010 and 2011. The indictment alleges that for 2010, Anderson reported a total income of $58,452 when in fact, his income was approximately $88,149, and in 2011 he reported a total income of negative $81,710, when in fact, his income was approximately $259,995. The indictment further alleges that Anderson filed a false 2011 corporate income tax return for Haight Ashbury LLC claiming that the business’s gross receipts were $305,772 when in fact, the gross receipts were approximately $616,886.
Anderson was arraigned on the charges by U.S. Magistrate Judge Elizabeth M. Timothy. The trial is scheduled for September 2, 2014, before Senior U.S. District Judge Lacey A. Collier at the U.S. District Courthouse in Pensacola. As part of his conditions of release pending trial, Anderson is required not to have any contact, direct or indirect, with any former employees or customers of any of his former businesses located in the Northern District of Florida, which included Haight Ashbury LLC, Woodstock Navarre, Woodstock Niceville, Woodstock Fort Walton Beach, Woodstock Mary Esther, Woodstock Santa Rosa Beach, and Woodstock Crestview.
If convicted, Anderson faces a maximum of 3 years in prison, restitution, and a fine of $100,000 for each count.
This case is being prosecuted by Assistant U.S. Attorney Tiffany H. Eggers and was investigated by the Internal Revenue Service – Criminal Investigation and the Okaloosa Multi-Agency Drug Task Force.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Federal Employee Sentenced for $113,000 Scheme to Steal from Co-workersRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former IT specialist for the U.S. Department of Agriculture was sentenced in federal court today for a scheme to steal $113,000 from three co-workers, one of whom is blind.
Paula M. Steen, 50, of Overland Park, Kan., was sentenced by U.S. District Judge Gary A. Fenner to two years in federal prison without parole. The court also ordered Steen to pay $96,012 in restitution.
Steen was employed as an IT specialist for the USDA Farm Service Agency at the USDA facility at 6501 Beacon Drive, Kansas City, Mo.
On Dec. 18, 2013, Steen pleaded guilty to wire fraud. Steen admitted that she engaged in a wire fraud and identity theft scheme to steal from her co-workers at USDA over a four-year period, from Dec. 30, 2008, to Dec. 29, 2012. Steen attempted to steal at least $113,282; the actual loss totaled $103,682.
Steen admitted that she charged $57,693 on the credit accounts of one co-worker (identified in court documents as “S.S.”), who is legally blind. Steen later repaid $18,278 of that amount to creditors. Steen also secured four personal loans from this co-worker totaling $48,171, which she did not repay. Steen attempted to borrow $2,600 in the co-worker’s name, but after submitting the personal loan application to a financial institution, she later withdrew it.
Steen admitted that she illegally transferred $16,096 from another co-worker’s credit union account to her own creditors and to her own bank account. (This co-worker is identified in court documents as “R.H.”) Steen also attempted to illegally transfer another $2,000.
Steen attempted to open a joint credit card account in the name of a third co-worker (identified in court documents as “J.S.”), using his Social Security number and date of birth without his authorization.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the U.S. Department of Agriculture, Officer of Inspector General.Former Chief Executive Officer of Lufthansa Subsidiary BizJet Pleads Guilty to Foreign Bribery ChargesRead the Press Release
The former president and chief executive officer of BizJet International Sales and Support Inc., a U.S.-based subsidiary of Lufthansa Technik AG with headquarters in Tulsa, Oklahoma, that provides aircraft maintenance, repair and overhaul services, pleaded guilty today for his participation in a scheme to pay bribes to foreign government officials.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Danny C. Williams Sr., of the Northern District of Oklahoma and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
“The former CEO of BizJet, Bernd Kowalewski, has become the third and most senior Bizjet executive to plead guilty to bribing officials in Mexico and Panama to get contracts for aircraft services,” said Assistant Attorney General Caldwell. “While Kowalewski and his fellow executives referred to the corrupt payments as ‘commissions’ and ‘incentives,’ they were bribes, plain and simple. Though he was living abroad when the charges were unsealed, the reach of the law extends beyond U.S. borders, resulting in Kowalewski’s arrest in Amsterdam and his appearance in court today in the United States. Today’s guilty plea is an example of our continued determination to hold corporate executives responsible for criminal wrongdoing whenever the evidence allows.”
“I commend the investigators and prosecutors who worked together across borders and jurisdictions to vigorously enforce the Foreign Corrupt Practices Act,” said U.S. Attorney Williams. “Partnership is a necessity in all investigations. By forging and strengthening international partnerships to combat bribery, the Department of Justice is advancing its efforts to prevent crime and to protect citizens.”
Bernd Kowalewski, 57, the former President and CEO of BizJet, pleaded guilty today in federal court in Tulsa, Oklahoma, to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and a substantive violation of the FCPA in connection with a scheme to pay bribes to officials in Mexico and Panama in exchange for those officials’ assistance in securing contracts for BizJet to perform aircraft maintenance, repair and overhaul services.
Kowalewski was arrested on a provisional arrest warrant by authorities in Amsterdam on March 13, 2014, and waived extradition on June 20, 2014. Kowalewski is the third BizJet executive to plead guilty in this case. Peter DuBois, the former Vice President of Sales and Marketing, pleaded guilty on Jan. 5, 2012, to conspiracy to violate the FCPA and a substantive violation of the FCPA and Neal Uhl, the former Vice President of Finance, pleaded guilty on Jan. 5, 2012, to conspiracy to violate the FCPA. Jald Jensen, the former sales manager at BizJet, has been indicted for conspiracy as well as substantive FCPA violations and money laundering and is believed to be living abroad. Charges were unsealed against the four defendants on April 5, 2013.
According to court filings, Kowalewski and his co-conspirators paid bribes directly to foreign officials to secure aircraft maintenance repair and overhaul contracts, and in some instances, the defendants funneled bribes to foreign officials through a shell company owned and operated by Jensen. The shell company, Avionica International & Associates Inc., operated under the pretense of providing aircraft maintenance brokerage services but in reality laundered money related to BizJet’s bribery scheme. Bribes were paid to officials employed by the Mexican Policia Federal Preventiva, the Mexican Coordinacion General de Transportes Aereos Presidenciales, the air fleet for the Gobierno del Estado de Sinaloa, the air fleet for the Gobierno del Estado de Sonora and the Republica de Panama Autoridad Aeronautica Civil.
Further according to court filings, the co-conspirators discussed in e-mail correspondence and at corporate meetings the need to pay bribes, which they referred to internally as “commissions” or “incentives,” to officials employed by the foreign government agencies in order to secure the contracts. At one meeting, for example, in response to a question about who the decision-maker was at a particular customer organization, DuBois stated that a director of maintenance or chief pilot was normally responsible for decisions on where an aircraft went for maintenance work. Kowalewski then responded by explaining that the directors of maintenance and chief pilots in the past received “commissions” of $3,000 to $5,000 but were now demanding $30,000 to $40,000 in “commissions.” Similarly, in e-mail correspondence between Uhl, DuBois, Kowalewski, and several others, Uhl responded to a question about BizJet’s financial outlook if “incentives” paid to brokers, directors of maintenance, or chief pilots continued to increase industry wide, stating that they would “work to build these fees into the revenue as much as possible. We must remain competitive in this respect to maintain and gain market share.”
On March 14, 2012, the department announced that it had entered into a deferred prosecution agreement with BizJet, requiring that BizJet pay an $11.8 million monetary penalty to resolve charges related to the corrupt conduct. That agreement acknowledged BizJet’s voluntary disclosure, extraordinary cooperation, and extensive remediation in this case. In addition, the department announced on March 14, 2012, that BizJet’s indirect parent company, Lufthansa Technik AG, entered into an agreement with the department in which the department agreed not to prosecute Lufthansa Technik provided that Lufthansa Technik satisfies its obligations under the agreement for a period of three years.
This case is being investigated by the FBI’s Washington Field Office with substantial assistance form the Oklahoma Field Office. The department has worked closely with its law enforcement counterparts in Amsterdam, Mexico and Panama, and has received significant assistance from Germany and Uruguay. The Criminal Division’s Office of International Affairs has also provided assistance. This case is being prosecuted by Assistant Chief Daniel S. Kahn and Trial Attorney David Fuhr of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kevin Leitch of the Northern District of Oklahoma.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Former Chief Executive Officer of Lufthansa Subsidiary BizJet Pleads Guilty to Foreign Bribery ChargesRead the Press Release
WASHINGTON – The former president and chief executive officer of BizJet International Sales and Support Inc., a U.S.-based subsidiary of Lufthansa Technik AG with headquarters in Tulsa, Oklahoma, that provides aircraft maintenance, repair and overhaul services, pleaded guilty today for his participation in a scheme to pay bribes to foreign government officials.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Danny C. Williams Sr., of the Northern District of Oklahoma and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
“The former CEO of BizJet, Bernd Kowalewski, has become the third and most senior Bizjet executive to plead guilty to bribing officials in Mexico and Panama to get contracts for aircraft services,” said Assistant Attorney General Caldwell. “While Kowalewski and his fellow executives referred to the corrupt payments as ‘commissions’ and ‘incentives,’ they were bribes, plain and simple. Though he was living abroad when the charges were unsealed, the reach of the law extends beyond U.S. borders, resulting in Kowalewski’s arrest in Amsterdam and his appearance in court today in the United States. Today’s guilty plea is an example of our continued determination to hold corporate executives responsible for criminal wrongdoing whenever the evidence allows.”
“I commend the investigators and prosecutors who worked together across borders and jurisdictions to vigorously enforce the Foreign Corrupt Practices Act,” said U.S. Attorney Williams. “Partnership is a necessity in all investigations. By forging and strengthening international partnerships to combat bribery, the Department of Justice is advancing its efforts to prevent crime and to protect citizens.”
Bernd Kowalewski, 57, the former President and CEO of BizJet, pleaded guilty today in federal court in Tulsa, Oklahoma, to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and a substantive violation of the FCPA in connection with a scheme to pay bribes to officials in Mexico and Panama in exchange for those officials’ assistance in securing contracts for BizJet to perform aircraft maintenance, repair and overhaul services.
Kowalewski was arrested on a provisional arrest warrant by authorities in Amsterdam on March 13, 2014, and waived extradition on June 20, 2014. Kowalewski is the third BizJet executive to plead guilty in this case. Peter DuBois, the former Vice President of Sales and Marketing, pleaded guilty on Jan. 5, 2012, to conspiracy to violate the FCPA and a substantive violation of the FCPA and Neal Uhl, the former Vice President of Finance, pleaded guilty on Jan. 5, 2012, to conspiracy to violate the FCPA. Jald Jensen, the former sales manager at BizJet, has been indicted for conspiracy as well as substantive FCPA violations and money laundering and is believed to be living abroad. Charges were unsealed against the four defendants on April 5, 2013.
According to court filings, Kowalewski and his co-conspirators paid bribes directly to foreign officials to secure aircraft maintenance repair and overhaul contracts, and in some instances, the defendants funneled bribes to foreign officials through a shell company owned and operated by Jensen. The shell company, Avionica International & Associates Inc., operated under the pretense of providing aircraft maintenance brokerage services but in reality laundered money related to BizJet’s bribery scheme. Bribes were paid to officials employed by the Mexican Policia Federal Preventiva, the Mexican Coordinacion General de Transportes Aereos Presidenciales, the air fleet for the Gobierno del Estado de Sinaloa, the air fleet for the Gobierno del Estado de Sonora and the Republica de Panama Autoridad Aeronautica Civil.
Further according to court filings, the co-conspirators discussed in e-mail correspondence and at corporate meetings the need to pay bribes, which they referred to internally as “commissions” or “incentives,” to officials employed by the foreign government agencies in order to secure the contracts. At one meeting, for example, in response to a question about who the decision-maker was at a particular customer organization, DuBois stated that a director of maintenance or chief pilot was normally responsible for decisions on where an aircraft went for maintenance work. Kowalewski then responded by explaining that the directors of maintenance and chief pilots in the past received “commissions” of $3,000 to $5,000 but were now demanding $30,000 to $40,000 in “commissions.” Similarly, in e-mail correspondence between Uhl, DuBois, Kowalewski, and several others, Uhl responded to a question about BizJet’s financial outlook if “incentives” paid to brokers, directors of maintenance, or chief pilots continued to increase industry wide, stating that they would “work to build these fees into the revenue as much as possible. We must remain competitive in this respect to maintain and gain market share.”
On March 14, 2012, the department announced that it had entered into a deferred prosecution agreement with BizJet, requiring that BizJet pay an $11.8 million monetary penalty to resolve charges related to the corrupt conduct. That agreement acknowledged BizJet’s voluntary disclosure, extraordinary cooperation, and extensive remediation in this case. In addition, the department announced on March 14, 2012, that BizJet’s indirect parent company, Lufthansa Technik AG, entered into an agreement with the department in which the department agreed not to prosecute Lufthansa Technik provided that Lufthansa Technik satisfies its obligations under the agreement for a period of three years.
This case is being investigated by the FBI’s Washington Field Office with substantial assistance form the Oklahoma Field Office. The department has worked closely with its law enforcement counterparts in Amsterdam, Mexico and Panama, and has received significant assistance from Germany and Uruguay. The Criminal Division’s Office of International Affairs has also provided assistance. This case is being prosecuted by Assistant Chief Daniel S. Kahn and Trial Attorney David Fuhr of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kevin Leitch of the Northern District of Oklahoma.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Bartlett Doctor Sentenced to 16 Years in Federal Prison for Illegal Distribution of Prescription NarcoticsRead the Press Release
Memphis, TN - Edward L. Stanton III, United States Attorney for the Western District of Tennessee; and Sheriff William Oldham, Shelby County Sheriff’s Office, announced today that on July 15, 2014, Senior United States District Judge Jon Phipps McCalla sentenced Michael A. Patterson, formerly a medical doctor who had an office in Bartlett, Tennessee, to 16 years in federal prison for several violations of the Controlled Substance Act involving prescription narcotics.
In November of 2011, Patterson, who according to the indictment was a medical doctor licensed to practice medicine in Tennessee, was indicted for a number of violations of the federal Controlled Substances Act involving narcotics. The indictment noted that Patterson practiced medicine under the trade name Bartlett Psychiatric Center, PC, at an office located on Kirby-Whitten Road in Bartlett, Tennessee. According to the indictment Patterson’s medical license was revoked on March 22, 2011 by the Tennessee Board of Medical Examiners pursuant to the terms of an Agreed Order.
Patterson subsequently pleaded guilty to Counts 2 and 37 of the indictment. He was charged in Count 2 with illegally distributing Oxycodone, a Schedule II Controlled Substance, by issuing a prescription “outside the usual course of medical practice and for no legitimate medical purpose,” in violation of Title 21, United States Code, Section 841(a)(1). This section of the Controlled Substances Act makes it a crime to illegally distribute a controlled substance. Under federal law, Schedule II Controlled Substances are drugs that have a “high potential for abuse” and for which abuse “may lead to severe psychological of physical dependence.” Oxycodone is defined as a Schedule II Controlled Substance under the Controlled Substances Act.
Patterson was charged in Count 37 of the indictment with illegally distributing hydrocodone tablets by providing a person with a forged prescription in May 2011, in violation of Title 21, United States Code, Section 841(a)(1). Hydrocodone is defined as a Schedule III Controlled Substance under the Controlled Substances Act. Schedule III Controlled Substances are defined as drugs that have a potential for abuse, and the abuse of which may lead to “moderate physical dependence or high psychological dependence.”
In March of 2012, Patterson was indicted by a federal grand jury in the Northern District of Mississippi and charged with violating the Controlled Substances Act. That case was transferred to Memphis and Patterson pleaded guilty to knowingly using a revoked registration number in order to dispense a prescription for a Schedule IV narcotic in violation of Title 21, United States Code, Section 843(a)(2).
In addition to the prison sentence, Senior United States District Judge Jon Phipps McCalla ordered Patterson to serve eight years of supervised release. There is no parole in the federal system.
“Licensed professionals who nefariously hide behind their titles and white jackets to illegally distribute prescription drugs are just as much ‘drug dealers’ as those who deal crack cocaine on our streets,” said U.S. Attorney Stanton. “The Court’s sentence should serve as a clear reminder that this type of conduct will not be tolerated.”
“Criminal activity of any kind will not be tolerated by those individuals who willingly choose to violate the law,” stated Sheriff Oldham. “We will continue to work closely with U.S. Attorney Stanton, the U.S. Attorney’s Office and other law enforcement agencies to make sure those who commit these crimes are off the streets.”
The case was investigated by Tennessee Bureau of Investigation and the Shelby County Sheriff’s Office. Assistant U.S. Attorney Joseph C. Murphy, Jr., prosecuted the case on behalf of the government.Former 32 Year FBI Employee and His Wife Plead Guilty to Bank FraudRead the Press Release
SAN FRANCISCO – A former 32 year FBI employee and his wife pleaded guilty in federal court this afternoon to Bank Fraud, United States Attorney Melinda Haag announced.
Charles and Jeannette Espinel (the Espinels) both admitted in their separate plea agreements that, beginning in 2006 and continuing through 2010, the two of them defrauded First California Bank and Wells Fargo Bank in connection with mortgage loans they obtained to purchase a $750,000 rental property in Daly City, Calif. and a $600,000 rental property in San Bruno, Calif. The Espinels admitted that they purchased these rental properties by jointly submitting to banks in June 2006 and April 2007 fraudulent mortgage loan applications in which they knowingly overstated their incomes and falsely claimed that it was their intention to occupy the rental properties as their primary residence. The Espinels also admitted that they subsequently obtained favorable modifications to these loans through fraud, including submitting false Individual Income Tax Returns which they had altered. The Espinels both admitted in their plea agreements that the total loss from their bank fraud was over $83,000.
Charles Espinel in his plea agreement further admitted that from May 1979 until February 2012, he worked as a Support Services Technician in the San Francisco Division of the Federal Bureau of Investigation (FBI). Espinel’s professional responsibilities as a FBI Support Services Technician included records and file management technical support, telecommunications and investigative automation support, office management support, and operations security support. As an FBI employee with Top Secret clearance as well as access to sensitive information, Espinel was required annually to file a security financial disclosure form (SFDF) disclosing certain financial information (including listing all assets and liabilities). Espinel knew that his FBI supervisors and the FBI Security Division/Internal Security Section would review the financial information on his SFDFs to assess whether he had personal financial problems that might threaten his continued suitability for a Top Secret security clearance. Espinel admitted that he knew that lying on his SFDFs about his bank accounts and owned real estate would be significant issues of concern for FBI management. Espinel admitted in his plea agreement that in 2007, 2008, 2009, and 2010, he knowingly submitted to the Security Division/Internal Security Section of the FBI SFDFs in which he made several false statements and material omissions. Espinel admitted that he knowingly failed to disclose on those SFDFs his wife’s income, and failed to disclose the real estate properties he owned or the rental income he was receiving from those properties.
Charles Espinel, 61, and Jeannette Espinel, 58, of Daly City, were charged in a Criminal Information on June 3, 2014, with one count of Bank Fraud, in violation of 18 United States Code Section 1344. The maximum statutory penalty for Bank Fraud is 30 years imprisonment and $1,000,000 fine. The Espinels’ sentencing is scheduled for Nov. 12, 2014, before the Honorable Charles R. Breyer, United States District Court Judge, in San Francisco.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the United States Department of Justice Office of the Inspector General.
(Espinel information )
Federal Jury Convicts 4 in St. Thomas Jewelry Store RobberyRead the Press Release
St. Thomas, USVI – After a three-day trial in District Court in St. Thomas, a federal jury on Wednesday found four men guilty of the armed robbery of Imperial Jewelry Store in St. Thomas, United States Attorney Ronald W. Sharpe announced.
Shaquim Fredericks, 19, Warkim Gabriel, 18, Alvin Thomas, 19, and Chefton Newton, 26, all of St. Thomas, were convicted of Interference with Commerce by Robbery, Conspiracy to Interfere with Commerce by Robbery and Conspiracy to Use a Firearm in Furtherance of a Crime of Violence.
According to the evidence presented at trial, at approximately 9:30 a.m. on March 15, 2014, seven masked individuals, entered Imperial Jewelry Store located on Main Street, St Thomas, and robbed the store of approximately $1 million worth of jewelry. Some of the robbers brandished firearms, while the others used tools to break display cases and grab the jewelry. During the robbery, store employees had firearms pointed at their heads by the robbers.
After approximately 90 seconds inside the store, all seven individuals fled. Shortly thereafter, Virgin Islands Police Department officers found six suspects, including the four defendants, hiding in the thick brush in the area of Fireburn Hill. VIPD officers also discovered a significant amount of jewelry, three firearms, and clothing in the brush near where the defendants were hiding. Two of the individuals arrested are juveniles. Their cases are being handled by the Virgin Islands Department of Justice.
The defendants face a statutory maximum sentence of 20 years in prison. Sentencing for all four defendants is scheduled for December 4, 2014.
U.S. Attorney Sharpe commended the collaborative work of the Virgin Islands Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives, which investigated the case. “Today’s verdict demonstrates that when federal and local forces join together, we can work quickly to ensure that violent offenders are brought to justice.” Sharpe said. The case was prosecuted by Assistant U.S. Attorney Kelly B. Lake.
El Departamento De Justicia Da A Conocer Declaracion Conjunta De Principios Con La Ciudad De Albuquerque, Nuevo Mexico Para Reformar El Departamento De Policia De AlbuquerqueRead the Press Release
ALBUQUERQUE – El Departamento de Justicia (DOJ sus siglas en inglés), anunció hoy que el Departamento y la Ciudad de Albuquerque, N.M., han firmado una Declaración Conjunta de Principios, la cual refleja buena fe de ambas partes para entrar en un acuerdo, ejecutable en el tribunal, para reformar al Departamento de Policía de Albuquerque (APD sus siglas en inglés). La declaración conjunta de principios especifica públicamente las medidas que el DOJ y la ciudad estàn llevando a cabo para resolver los hallazgos que resultaron de la investigación que le hizo el DOJ al APD. El 10 de abril de 2014, después de una extensa investigación, el DOJ encontró causa razonable para creer que el APD utiliza un patrón de uso de fuerza excesivo, incluyendo la fuerza mortal irrazonable.
Dada a conocer la carta de hallazgos, el DOJ y la ciudad, cada uno independientemente, se pusieron en contacto con partes interesadas en Albuquerque para así escuchar sus ideas e inquietudes a cerca de la reforma del APD. Abogados y personal del DOJ han conversado con oficiales de policía, oficiales de la ciudad, proveedores de servicios de salud mental, organizaciones de defensores, individuos que han sido personalmente afectados por la conducta pasada del APD, y con otros miembros de la comunidad. El DOJ ha llevado a cabo docenas de reuniones y se ha reunido con cientos de personas a lo largo y ancho de la ciudad. A través estos esfuerzos, ambas partes han adquirido información importante sobre lo que preocupa a los oficiales y a la comunidad. Esta información moldearà el acuerdo final. El DOJ està motivado por la información que ha recibido y està comprometido a lograr reformas sostenibles que aseguraràn que APD prestarà servicios de tal forma que se respeten los derechos de los residentes, se promueva confianza mutua entre la policía y la comunidad, y que mejore la seguridad del público y de los oficiales.
“Este acuerdo marca un importante paso adelante para encarar el uso irrazonable de fuerza mortal descubierto durante nuestra investigación al Departamento de Policía de Albuquerque”, dijo Eric Holder, Fiscal General de los Estados Unidos. “Los residentes de Albuquerque dependen en su cuerpo policial para servir a su comunidad con honor e integridad. En la gran mayoría de los casos, nuestros dedicados oficiales de policía local, quienes a diario ponen sus vidas en peligro, hacen justamente eso. Pero cuando ocurre la conducta impropria en el ejercicio de la profesión, nunca vacilaremos en actuar para asegurar los derechos civiles de todos en este país. Como resultado de la acción en curso, me siento seguro de que el Departamento de Policía de Albuquerque podrà corregir estas pràcticas preocupantes, restaurar la confianza del público y proteger mejor a todos sus ciudadanos contra todas las amenazas y peligros – y, a la vez, proveer un modelo de profesionalismo y equidad que todos los americanos merecen”.
“Felicitamos a la ciudad por haberse comprometido a entrar en negociaciones de buena fe para lograr un acuerdo ejecutable en el tribunal, que asegurarà reformas sostenibles en el APD”, dijo Jocelyn Samuels, Procuradora General Auxiliar Interina de la División de Derechos Civiles. “La Declaración Conjunta de Principios demuestra a la comunidad nuestro compromiso de trabajar de una manera expedita con la ciudad para crear un acuerdo duradero el cual resolverà nuestros hallazgos del 10 de abril y asegurarà que el APD le proveerà a la gente de Albuquerque pràcticas policiales constitucionales y efectivas”.
“Desde que el DOJ dio a conocer su carta de hallazgos, hemos pedido y hemos recibido ideas valiosas e información de los oficiales, miembros de la comunidad, representantes de múltiples organizaciones y de otros que tienen interés en el futuro de nuestra comunidad”, dijo Damon P. Martínez, Procurador Federal por el Distrito de Nuevo México. “Agradecemos a todos aquellos que han hablado con nosotros. El esperado acuerdo ejecutable en el tribunal final, el cual esperamos poder lograr con la ciudad de Albuquerque, ya es màs fuerte debido a las aportaciones que hemos recibido”.
El DOJ y la ciudad han dado a conocer la Declaración Conjunta de Principios para así informarle a los oficiales de APD y a la comunidad de Albuquerque, que sus inquietudes e ideas han sido escuchadas y que su continuada participación es crucial para lograr una reforma sostenible. Específicamente, la Declaración Conjunta de Principios da a conocer que el DOJ y la ciudad esperan desarrollar reformas en las ocho àreas enumeradas en la carta de hallazgos del DOJ. El uso de políticas de fuerza, la interacción con individuos con enfermedad mental y otras discapacidades, unidades tàcticas, entrenamiento, investigaciones internas y quejas civiles, dirección y supervisión, reclutamiento y selección de oficiales y participación y supervisión comunitaria. La Declaración Conjunta de Principios, también indica que la meta es lograr un acuerdo que sea ejecutable ante el tribunal, que serà supervisado por un monitor independiente. Copia completa de la declaración conjunta de principios puede ser encontrada aquí. (Hyperlink).
Durante el proceso de negociación, el DOJ sigue interesado en obtener recomendaciones e información del público referente a las reformas. DOJ continúa monitoreando la línea directa comunitaria que està disponible en inglés y español, 1-855-544-5134 y el correo electrónico comunitario de APD en el [email protected].
El reporte completo de la investigación hecha por DOJ al APD, al igual que otra información relacionada puede ser encontrada en http://www.justice.gov/usao/nm/APD.html y http://justice.gov/crt/about/spl/findsettle.php. Para màs información sobre la División de Derechos Civiles, por favor visite www.justice.gov/crt.
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Statement of Principles
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Eight Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II, announced that the following individuals appeared before Judge Irene M. Keeley for sentencing.
Christopher Vickers, age 25, of Clarksburg, was sentenced to 21 months in prison and six years of supervised release for the distribution of heroin within 1,000 feet of Monticello Avenue playground. Vickers, who is free on bond, will self-report to the designated Federal institution . This case was prosecuted by Assistant U.S. Attorney Andrew R. Cogar.
Marcus Gerald Barnett, age 33, of Clarksburg, was sentenced to 21 months in prison and six years of supervised release for the distribution of crack cocaine within 1,000 feet of a housing project. Barnett, who is free on bond, will self-report to the designated Federal institution. This case was prosecuted by Assistant U.S. Attorney Shawn A. Morgan.
Nino L. Mancino, age 43, of Fairmont, was sentenced to 12 months and 1 day in prison and three years of supervised release for the conspiracy to distribute hydrocodone. Mancino, who is free on bond, will self-report to the designated Federal institution. This case was prosecuted by Assistant United States Attorney John C. Parr.
The Vickers, Barnett and Mancinco cases were investigated by the Greater Harrison County Drug and Violent Crimes Task Force., which is comprised of officers and agents from the Bridgeport Police Department, the Clarksburg Police Department, the Drug Enforcement Administration, and the West Virginia State Police.Christy D. Ruble, age 32, of West Milford, West Virginia, former officer in charge of the West Milford post office, was sentenced to 5 years probation for embezzlement from postal accounts. The Court also ordered Ruble to make restitution in the amount of $15,238.65 to the U.S. Postal Service. This case was prosecuted by Assistant U.S. Attorney Brandon Flower and investigated by the U.S. Postal Service, Office of Inspector General.
Four inmates at FCI Morgantown appeared before Magistrate Judge John S. Kaull and entered pleas and were sentenced:
Robert Whitfield, age 29, was sentenced to 12 months in prison for obstruction of justice, with the sentence to run consecutively to his current sentence.
Eric Irizarry-Barriera, age 38; Nestor Diaz age 45; and, Stefan Toliver, age 27, were each sentenced to 3 months in prison for possession of a cell phone, with the sentence to run consecutively to their current sentences.
These cases were prosecuted by Assistant U.S. Attorney Brandon S. Flower and were investigated by the Special Investigative Services Unit at FCI Morgantown.Eight Individuals Convicted in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II, announced that the following individuals appeared before Magistrate Judge Robert W. Trumble.
Delmar Hoza Currry, age 33, of Martinsburg, entered a plea of guilty to possession with intent to distribute crack cocaine. Curry, who is in custody pending sentencing, faces up to 30 years in prison due to his prior convictions.
Colleen Eugene Lowe, age 49, of Millcreek, West Virginia, entered a plea of guilty to possession with intent to distribute crack cocaine. Lowe, who is free on bond pending sentencing, faces up to 20 years in prison.
John Earl Mitchell, age 29, of Harpers Ferry, West Virginia, entered a plea of guilty to possession with intent to distribute crack cocaine and methylone. Mitchell, who is in custody pending sentencing, faces up to 20 years in prison.
Joshua Thomas Smith and Mickey Knight Matheson, both age 29, of Winchester, Virginia, entered pleas of guilty to being a convicted felon in possession of firearms. Smith and Matheson, who are in custody pending sentencing, face up to 10 years in prison.
These cases were prosecuted by Assistant U.S. Attorney Jarod J. Douglas and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, the Martinsburg Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Brenda Carmody, age 49, of Bunker Hill, West Virginia, entered a plea of guilty to misappropriation of postal funds between August of 2013 and January of 2014. Carmody admitting to taking $1,551.91 from the stamp drawer and $480 from post office box rentals from the Rippon, West Virginia, post office while she was working as Postmaster Relief. Carmody, who is free on bond pending sentencing, faces up to 10 year in prison. This case was prosecuted by Assistant U.S. Attorney David J. Perri and investigated by the U.S. Postal Inspection Service.
Martina Y. Roberts, age 40, of Williamsport, Pennsylvania, entered a plea of guilty to bankruptcy fraud. On April 26, 2013, Roberts, who had previously filed for personal bankruptcy, forged the bankruptcy trustee’s name on a document allowing Roberts to obtain a line of credit. Roberts, who is free on bond pending sentencing, faces up to 5 years in prison. This case was prosecuted by Assistant U.S. Attorney Andrew R. Cogar and investigated by the Office of the United States Trustee.
Jesse Antonio Garcia, age 27, of Martinsburg, entered a plea of guilty to unlawful production of an identification document. Garcia, who is free on bond pending sentencing, faces up to 5 years in prison. This case was prosecuted by Assistant U.S. Attorney Douglas and investigated by US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).Easton Woman Charged in Fraud SchemeRead the Press Release
Felicia Anne Straub, 41, of Easton, Pennsylvania, Pennsylvania, was charged Tuesday by information with three counts of wire fraud, one count of aggravated identity theft, and one count of tax evasion announced United States Attorney Zane David Memeger. The information alleges that between September 5, 2006, and December 26, 2010, Straub as the former office manager of Financial Adjuster’s, Inc. misappropriated FAI funds of at least $561,579.39, which she used for personal purchases of goods and services, and to pay her husband’s personal credit card, at various locations throughout Lehigh County, Pennsylvania, and elsewhere.
If convicted of all charges, Straub faces a maximum sentence of 67 years in prison, a mandatory minimum of two years in prison that must run consecutive to any sentence imposed on the tax and wire fraud counts, 3 years supervised release, a $500 special assessment, and a $750,000.00 fine.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, the Lehigh County District Attorney’s Office, and the Whitehall Township Police Department, and is being prosecuted by Assistant United States Attorney Kishan Nair.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Eagle Butte Man Charged with Second Degree Burglary, Larceny, and Possession of A Stolen FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Second Degree Burglary, Larceny, and Possession of a Stolen Firearm.
Shilo Hill, a/k/a Shilo Robideau, age 18, was indicted on July 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 22, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Hill is alleged to have unlawfully entered or remained in an Eagle Butte home to steal two firearms, which he then possessed for a period of time. The charges are merely an accusation and Hill is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Hill was released on bond to await trial. Trial has been set for September 23, 2014.
Duval County Woman Indicted for Identity Theft, False Representation of A Social Security Number, and Impersonating an Internal Revenue Service EmployeeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Leyvis Taveras (35, Jacksonville) with identity theft, false representation of a social security number, and impersonating a federal employee. If convicted on all counts, Taveras faces a maximum penalty of 13 years in federal prison.
According to the indictment, Taveras aided and abetted in the false representation of two social security numbers in a tax filing with the Internal Revenue Service. She also pretended to be an employee of the Internal Revenue Service investigating the identity theft associated with the two social security numbers.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Treasury Inspector General for Tax Administration Office of Investigations. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
PHOENIX– On July 23, 2014, Ambrosio Nunez-Lopez, 65, of Mexico, was sentenced by U.S. District Judge David G. Campbellto 10 years in prison. Nunez-Lopez pleaded guilty on March 18, 2014 to conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, a felony.
The Organized Crime Drug Enforcement Task Force investigation into the Nunez-Lopez Drug Trafficking Organization (DTO) took place from Jan. 2012 through May 2012 in Phoenix. On May 4, 2012, the defendant was charged with conspiring to possess with the intent to distribute methamphetamine and possessing methamphetamine. The evidence showed that the DTO imported methamphetamine from Mexico into the United States and transported it to the East Coast for distribution. After a four-month long investigation, officers conducted a traffic stop of Nunez-Lopez on Interstate 10 East, and searched his truck. Agents located approximately 120 pounds of methamphetamine in liquid form hidden in one of the dual gas tanks of his truck.
The investigation in this case was conducted by the Drug Enforcement Administration, the Tempe Police Department, the Arizona Department of Public Safety, and the Mesa Police Department. The prosecution was handled by Jonell L. Lucca, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-00982-PHX-DGC
RELEASE NUMBER: 2014-041_Nunez-LopezFor 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.District Court Enters Permanent Injunction Against New York Dietary Supplement Maker to Prevent Distribution of Adulterated SupplementsRead the Press Release
The Justice Department announced today that the U.S. District Court for the Eastern District of New York has entered a consent decree of permanent injunction against Applied Polymer Systems dba APS Pharmaco (APS) and its president, Nuka Reddy, all of Lindenhurst, New York, to prevent the distribution of adulterated dietary supplements.
According to a complaint filed July 21, the defendants violated the Federal Food, Drug, and Cosmetic Act (FDCA) by manufacturing and distributing dietary supplements that were adulterated. Under the FDCA, dietary supplement manufacturers are required to have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. The government’s actions resulted from a series of inspections of APS’ manufacturing facility beginning in 2012, which revealed, among other things, that APS failed to perform identity tests or examinations for certain dietary ingredients before using them in their products.
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing violations of the FDCA. The consent decree requires the dietary supplement manufacturer to cease all operations and requires that if they wish to resume manufacturing dietary supplements in the future, the FDA first must determine that APS’ manufacturing practices have come into compliance with the law. The consent decree also requires a recall of all products sold since Jan. 1, 2014. The consent decree was filed with the complaint and was docketed on July 23.
The FDA referred this matter to the Department of Justice. The Consumer Protection Branch of the Justice Department’s Civil Division, together with the U.S. Attorney’s Office for the Eastern District of New York, brought this case on behalf of the United States.
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Conspirator Sentenced to Prison for $1.5 Million in Mortgage Fraud LossesRead the Press Release
Five Co-Conspirators Have Pleaded Guilty
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Demetrius Peete, age 46, of Manassas, Virginia, to a year and a day in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a mortgage fraud scheme which resulted in losses attributable to Peete of approximately $1.5 million. Judge Bredar also ordered Peete to pay restitution of $394,908 to the victims and to forfeit $1.5 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation;
Special Agent in Charge Brian Murphy of the United States Secret Service Baltimore Field Office; Special Agent in Charge Michael P. Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief Gary Gardner; and Howard County State’s Attorney Dario Broccolino.According to his plea agreement and court documents, in 2008 and 2009, Peete agreed to participate in several fraudulent real estate transactions that settled at M&R Title, Inc., located in Alexandria, Virginia. In 2009, Peete also agreed to participate in several fraudulent real estate transactions that settled at Sanford Title Services, located in Columbia, Maryland. Peete, along with co-conspirators Bonnie Kreamer, Niesha Williams, Rhonda Scott and Emeka Udeze arranged real estate transactions so that they could siphon profits out of the transaction for themselves. Peete negotiated short sales on behalf of sellers in which the properties were sold for a higher price than was represented to the lien holders and the sellers.
Peete and his coconspirators deceived buyers, sellers and lenders to make it appear to sellers that they were selling their property at a low price, and to buyers and lenders that the property was being sold at a higher price. The co-conspirators created paperwork for two different sales of the property at the same time. The first sale was fraudulent because it was backdated, the buyer planned to immediately flip the property in a subsequent sale and the settlement statement listed a fake loan. In the second sale, the sales price was significantly increased and the settlement statement showed a large sum being disbursed to the lender to pay off an existing lien. In fact, those funds were improperly disbursed to the co-conspirators.
Peete admitted that his participation in the schemes involved at least 10 victims, including lenders, sellers and buyers of real estate, title insurance companies and lien holders. He further agreed that the reasonably foreseeable loss associated with Peete’s conduct is approximately $1.5 million.
Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 49, of Riva, Maryland; Gregory Green, age 49, of Waldorf, Maryland; Niesha Williams, age 35, of Fort Washington, Maryland; Rhonda Scott, age 53, of Oxon Hill, Maryland; and Emeka Udeze, age 39, of Bowie, Maryland, each previously pleaded guilty to their roles in the fraud. Kraemer, who was responsible for the daily operations at Sanford Title, was sentenced to 51 months in prison, and ordered to pay restitution of $2,499,048 to the victims and to forfeit $4.8 million. Scott was sentenced to 30 months in prison and ordered to forfeit $2.7 million and pay restitution of $703,000. Williams was sentenced to 27 months in prison and ordered to forfeit $3.1 million and pay restitution of $1,445,593. Green was sentenced to three months in prison and ordered to pay restitution of $404,596. The other conspirators await sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI, Department of Justice - OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Judson T. Mihok, who are prosecuting the case.
Clermont Woman Convicted for Tax Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Tanya Fox (38, Clermont) guilty of 1 count of conspiracy to defraud the government with respect to claims, 5 counts of wire fraud, 10 counts of theft of government property, and 10 counts of aggravated identity theft. Fox faces a maximum penalty of 10 years in prison on the conspiracy count, 20 years’ imprisonment on each of the wire fraud counts, and 10 years with regard to each of the theft of government property counts. She faces an additional 2 years in prison for the aggravated identity theft charges, with the sentence to run consecutive to any sentence imposed on the previous charges. The United States will also seek a money judgment in the amount of $4,055,735 for the wire fraud and theft of government property charges. The judgment relates to the amount of fraudulent tax refunds that Fox and her co-conspirators received. The sentencing hearing is scheduled for October 20, 2014. Fox was originally indicted on March 14, 2014.
According to evidence introduced during the trial, Fox orchestrated a scheme to file fraudulent tax returns using identities that were stolen from a variety of sources. Fox directed other individuals to open business bank accounts in the name of a fraudulent tax preparation business and have the tax refunds deposited into those accounts. Fox worked with those individuals to withdraw the funds and spend the money. As part of the scheme, Fox attempted to receive approximately $5.8 million in fraudulent tax returns and was successful in receiving more than $4 million from the United States Treasury.
According to the testimony at trial, Fox spent the money received from the fraudulent tax returns to purchase a BMW 7 Series, Infinity M35, Chrysler Crossfire, and Volkswagen Beetle. The government has seized each of these vehicles. Fox also purchased a Maserati with the fraudulently-obtained proceeds. However, the Maserati was repossessed before it could be seized. Fox also used the proceeds from these offenses to have cosmetic surgery on two occasions and open a restaurant in the Orlando area.
Previously, Shanterica Smith, Gerald Williams, and Delray Duncan were convicted and sentenced for providing approximately 2,400 names from the Orange County Health Department to Fox, so that she and her co-conspirators could file the fraudulent tax returns. Smith was previously sentenced to 60 months in prison for her role in the conspiracy. Williams was sentenced to 54 months’ imprisonment, and Duncan was sentenced to 42 months in prison. In addition, April Cuyler pleaded guilty to conspiracy in this scheme and is scheduled for sentencing on September 8, 2014.
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, the United States Postal Inspection Service, and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Citizen of Morocco Admits Fabricating Refugee Application to Remain in U.S.Read the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that EL MEHDI SEMLALI FATHI, 26, a citizen of Morocco last residing in Bridgeport, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of perjury in an immigration matter.
According to court documents and statements made in court, in January 2008, FATHI was admitted to the United States after he obtained a student visa to study at Virginia International University. In February 2009, FATHI’s student visa status was terminated by the university after he failed all of his classes during the Fall 2008 semester and did not register for classes for the Spring 2009 semester. After his student visa status was terminated, FATHI failed to leave the U.S.
In December 2010, FATHI was detained in immigration custody as a result of an arrest in Virginia. While he was detained, he met an individual who explained refugee relief to him. In an effort to obtain refugee relief and remain in the U.S., FATHI reviewed certain country reports relating to Morocco and then prepared and filed, under penalty of perjury, a false refugee application (I-589), which included events he learned about in the country reports. FATHI’s false statements included a claim that he would be persecuted by the Kingdom of Morocco based on his membership in a particular social group and imputed political opinion, and that he was arrested twice in 2007 and persecuted by the Moroccan government.
In June 2011, an immigration judge in Virginia released FATHI on bond. FATHI then moved to Bridgeport and his immigration case was transferred to Connecticut. In September 2011, FATHI represented to an immigration judge in Hartford that all of the information on his I-589 application was accurate when he knew that all of the information in support of his refugee claim was materially false.
While his immigration proceedings were pending, FATHI traveled to California where he was arrested and subsequently placed in immigration custody. In January 2013, after his immigration proceedings were transferred to California, FATHI again falsely represented to an immigration judge in Adelanto, Calif., that his refugee application was true and accurate. In another hearing in August 2013, FATHI again committed perjury while testifying in support of his refugee application by stating that he was arrested and savagely beaten several times by the Moroccan authorities when, in fact, he was never arrested or persecuted by the Moroccan authorities, and that he attended a university in Marrakech during which he participated in demonstrations that caused him to be arrested by the Moroccan authorities when, in fact, he never attended any university in Marrakech.
In February 2014, during an interview with a federal agent, FATHI falsely claimed that Moroccan intelligence authorities had arrested him as part of a conspiracy with all of the other members of Jamaat Ansar El-Mehdi, a Moroccan based terrorist group that was dismantled by Moroccan security forces in 2006.
FATHI has been detained since his arrest on April 7, 2014.
Chief Judge Hall scheduled sentencing for October 20, 2014, at which time FATHI faces a maximum term of imprisonment of five years.
In addition, FATHI has agreed to inform the immigration court that he falsified his refugee application, as well as perjured himself, and will accept a final order of removal to Morocco.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, which includes participants from Homeland Security Investigations (HSI) in New Haven, Internal Revenue Service – Criminal Investigation Division, Naval Criminal Investigative Service, Connecticut State Police, Bridgeport Police Department, Norwich Police Department and the New York Police Department. The HSI attaché office in Casablanca, Morocco, has provided critical assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Krishna Patel and Stephen Reynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Cincinnati Man Indicted for Using Dead Children’s Identities to File False Income Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI -- A federal grand jury here has indicted Christopher K. Smith, 28, of Cincinnati, alleging that he used the names and identifying information of dead children to file false income tax returns and claim tax refunds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), announced the indictment returned yesterday.
The indictment alleges that between February 2012 and June 2012, Smith obtained the names and Social Security numbers of individuals, primarily deceased children, and used the information to file fraudulent income tax returns listing the individuals as taxpayers or dependents. Smith allegedly claimed refunds totaling $16,310.
The indictment charges Smith with four counts of wire fraud, each of which is punishable by up to 20 years in prison, and five counts of aggravated identity theft. Each count of aggravated identity theft is punishable by two years in prison, of which at least two years must be served consecutive to any time served for the fraud.
Smith will be scheduled to appear before a federal magistrate judge for an initial appearance on the charges.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Chief Executive Officer of International Stock Transfer Pleads Guilty in $3 Million Securities Fraud SchemeRead the Press Release
BROOKLYN, NY – Yesterday, Cecil Franklin Speight, also known as Frank Speight, pleaded guilty to conspiracy to commit mail fraud and securities fraud for engaging in a conspiracy to steal over three million dollars from investors. Speight was the sole owner, officer, and director of International Stock Transfer (IST), a registered transfer agent with the United States Securities and Exchange Commission (SEC) since May 2004. According to court filings and facts presented at the plea hearing, Speight stole at least $3.3 million from victim investors and used the proceeds to pay personal expenses, including purchases at Mercedes Benz, Nordstrom, Netflix, and Groupon. Speight faces up to five years’ imprisonment, at least $3.3 million in restitution, and a fine equal to double the investors’ losses.
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).
“Rather than transferring capital to issuers, the defendant used the investors’ funds as his own, including financing his lifestyle in Florida. His victims, from the Eastern District of New York and around the world, were conned into buying bogus securities that were not worth the paper they were printed on. Now, he will be held to account for his crimes,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation, and thanked the Securities and Exchange Commission for its assistance.
“Speight tricked his victims into thinking their money would be invested in high-yield securities, but he was essentially using their investments to fund his own lifestyle to the tune of several million dollars. People have the right to trade in an uncorrupted market, and today’s guilty plea is proof of the FBI’s continued determination to root out those who unlawfully interfere with this process,” stated FBI Assistant Director-in-Charge Venizelos.
IST was founded by Speight in 2004 as a transfer agent registered with the SEC with offices in Palm Beach, Florida. Speight used “cold callers” and other means to entice victims into investing their money in allegedly high yield securities. Speight promised the victims a high rate of return if they invested in securities that were purportedly associated with IST. Speight and his coconspirators directed the victims to wire their investment funds into purportedly secure attorney escrow accounts. Once the victims wired money to those escrow accounts, Speight typically stole the funds for his personal use, including the purchase of a Mercedes Benz automobile. Speight also withdrew over $350,000 of investors’ funds in cash.
Today’s guilty plea took place before United States Magistrate Judge Roanne L. Mann at the federal courthouse in Brooklyn, N.Y.
The government’s case is being prosecuted by Assistant United States Attorney Jack Dennehy.
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:
CECIL FRANKLIN SPEIGHT
Age: 53
West Palm Beach, FL
E.D.N.Y. Docket No. 14-CR-379
Chicago Man Pleads Guilty to Sex Trafficking Offense with Underage Girl in Sacramento AreaRead the Press Release
SACRAMENTO, Calif. —Marquist Piere Bradford, 28, of Chicago, pleaded guilty today to sex trafficking of children by force, United States Attorney Benjamin B. Wagner announced.
According to court documents, in early 2012 Bradford recruited a 15-year-old girl to travel from Fresno to Sacramento where she was used by Bradford as part of a prostitution business from January 19 through February 5, 2012. According to court documents, Bradford maintained an apartment in Rancho Cordova, which he used as a base of operations for a prostitution business that spanned the Sacramento and Bay areas, as well as cities outside California. At least two of Bradford’s victims were under the age of 18. Bradford fled from Sacramento to the Chicago area after law enforcement recovered the victim in this case.
This case was the product of an investigation by the Sacramento County Sheriff’s Office and the Sacramento FBI Innocence Lost Task Force. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Bradford has remained in custody since his arrest in Springfield, Ill. in April 2012. He is scheduled to be sentenced by United States District Judge Morrison C. England, Jr. on October 23, 2014. Bradford faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Buffalo Man Pleads Guilty to Bank Fraud ChargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Antwan Green, 32, of Buffalo, N.Y., pleaded guilty to conspiracy to commit bank fraud before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a maximum sentence of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the prosecution, stated that the defendant was part of a conspiracy to defraud local area banks by participating in a “Check Kiting” scheme. Green, and others, opened bank accounts and deposited large checks to the accounts. The deposited checks were written on accounts that had insufficient funds or on accounts that had been closed. Before the banks determined that the checks were not supported by any funds, the defendant and others withdrew smaller amounts from the accounts. Green actually made away with $35,547.93, but the amount of the intended loss was more than $367,000.
All five defendants in this case have been convicted.
The plea is the culmination of an investigation by the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.
Sentencing will be scheduled at a later date bfore Chief U.S. District Judge William M. Skretny.Broward County Sheriff’s Deputy Sentenced in Connection with Rothstein InvestigationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce that Jeff Alan Poole, 47, of Weston, was sentenced today in Ft. Lauderdale by U.S. District Judge William P. Dimitrouleas to one year and one day in prison, followed by three years of supervised release. Poole was also ordered to pay $22,071.02 in restitution.
On May 8, 2014, Poole pled guilty to conspiracy to violate civil rights, in violation of Title 18, United States Code, Section 241. At the time of the offense, the defendant was employed by BSO as a detective.
When he entered his guilty plea, the defendant admitted that he utilized his position within BSO unlawfully to arrest the ex-wife of an attorney who was engaged in a child custody dispute with her at the request of BSO Lt. David Benjamin. Poole also agreed at his guilty plea that this request emanated from Scott W. Rothstein, a former attorney who is now serving a 50-year sentence in connection with a Ponzi scheme which he had operated. On July 21, 2014, Benjamin was sentenced to a prison term of five years in connection with the Rothstein case.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and BSO. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
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.
Brooklyn Man Convicted of Attempting to Drug and Sexually Abuse ChildrenRead the Press Release
Earlier today, following a two week trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Bebars Baslan on charges of travel with intent to engage in sexual acts with a child under 12, conspiracy to produce child pornography, attempted production of child pornography, and attempted coercion and enticement of a child to engage in illegal sexual conduct. The charges relate to the defendant’s plot to sexually abuse three children, who were the sons and niece of an individual who became a government informant. The conviction was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office, and William J. Bratton, Commissioner, New York City Police Department.
The evidence at trial showed that in January 2013, the informant reported the defendant’s sexual interest in children to the government. Over the course of the next month, the informant made numerous recordings of the defendant plotting to sexually abuse children. The evidence showed that Baslan wanted to take photographs and video of his girlfriend giving oral sex to a 3-month old in order to use that photograph as blackmail to prevent her from going to the police. The defendant planned to use his girlfriend’s history of working with children to entice parents to allow her to babysit their children, whom the defendant would then drug and sexually abuse.
The evidence showed that the defendant’s plan was halted when the government set up a sting in which its informant offered the defendant the opportunity to sexually abuse his two sons and 7-year-old niece at a Jersey City hotel on March 19, 2013. On that day, the defendant provided the informant with children’s Benadryl and instructed the informant to give his niece an excessive dose in order to “knock her out” so that the defendant could sexually abuse her. Later that night, Baslan and his girlfriend then traveled to the Jersey City hotel armed with an array of camera equipment to photograph the sexual abuse. As they attempted to enter the room that they believed the informant to be in, agents of the FBI arrested them.
“The protection of children from sexual predators is one of our highest priorities. Let this be a warning to those who would prey on the most vulnerable among us; we will use every means to ensure that those who seek to sexually exploit children are prosecuted to the fullest extent of the law,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation and New York City Police Department who investigated this case.
At sentencing, the defendant faces a minimum of 30 years’ imprisonment and maximum of life imprisonment.
The government’s case is being prosecuted by Assistant United States Attorney Tyler Smith, Tiana Demas, and Robert Polemeni.
The Defendant:
Name: BEBARS BASLAN
Age: 36
Brooklyn, New York
E.D.N.Y. Docket No. 13-220 (RJD)
Belcourt Man Sentenced for AssaultRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on July 24, 2014, Jeremy Michael Laducer, 27, Belcourt, N.D., pleaded guilty and was sentenced before U. S. District Judge Daniel L. Hovland on a charge of assault resulting in serious bodily injury. Laducer received credit for four days in custody and will be on home confinement for 12 months. Laducer was further ordered to be on supervised release for three years, to pay a $100 special assessment to the Crime Victim’s Fund, and to pay $8,364.15 in restitution.
On March 29, 2013, Laducer assaulted a man outside Horsemen’s Bar which is located near Belcourt. The victim underwent surgery for facial injuries resulting from the assault.
The case was investigated by Bureau of Indian Affairs – Turtle Mountain Agency.
Assistant U. S. Attorney Brandi Russell prosecuted this case.
Balyo Scheduled to Plead Guilty to Federal ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that John Richard Balyo, 35, of Grand Rapids, is scheduled to plead guilty to federal charges related to child sexual exploitation. On July 23, 2014, the U.S. Attorney’s Office filed a two-count felony information. Count One charges Balyo with sexually exploiting a 12-year-old boy by using the child to create pornographic images. Count Two charges Balyo with possessing child pornography images. On July 24, 2014, a plea agreement was filed in the case. The plea agreement provides that Balyo will plead guilty to both counts of the felony information and agrees to forfeit computers, photographic equipment, and material used to sexually abuse or exploit children. In exchange, the U.S. Attorney’s Office will not seek additional charges from a federal grand jury. The arraignment and entry of the guilty plea is scheduled for July 29, 2014, at 10:00 a.m. before U.S. Magistrate Judge Ellen S. Carmody.
The plea agreement provides that Balyo will face a mandatory minimum sentence of 15 years and could be sentenced to a combined maximum sentence of 50 years. U.S. District Judge Robert Holmes Bell will determine the final sentence at a date to be scheduled.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney's Office; county prosecutor's offices; the Michigan State Police Internet Crimes Against Children task force (ICAC); the West Michigan Based Child Exploitation Task Force (WEBCHEX); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
The Homeland Security Investigations, in cooperation with the Michigan State Police ICAC, Battle Creek Police Department, Kalamazoo Department of Public Safety, and Kent County Sheriff’s Department investigated the case. Assistant U.S. Attorney Tessa K. Hessmiller is prosecuting the case.
Balyo has been scheduled to plead guilty but has not yet entered a guilty plea in court. The charges in the felony information are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
END
Baltimore Felon Exiled to 10 Years in Prison for Possessing A Gun in Connection with Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced James Arwine, age 36, of Baltimore, Maryland, today to 10 years in prison, followed by three years of supervised release, for conspiracy to use a firearm during and in relation to a drug trafficking crime.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Arwine’s plea agreement, on September 21, 2012, a detective with the Baltimore Police Department was in a covert location and saw James Arwine and Nathanial Hickman enter an alley. The detective observed what appeared to be a hand to hand transaction drug transaction by other individuals while Arwine and Hickman seemed to be acting as lookouts for law enforcement. The detective changed locations in an attempt to determine the drug stash location.
The detective saw Arwine and Hickman remove items from a vehicle and walk back into the alley to a dumpster. Hickman removed a black handgun from his waistband and placed it under the dumpster. Arwine then handed Hickman a second black handgun from his pocket which Hickman also placed under the dumpster. Arwine then gave Hickman a package, which he stashed with the guns.
Detectives moved in and arrested Arwine and Hickman. Two handguns, a loaded .357 handgun and a loaded .38 caliber handgun were recovered from under the dumpster, along with a package containing a bag of empty yellow top vials but no narcotics.
Arwine admitted that he possessed the gun and packaging material in relation to a conspiracy to distribute narcotics and that he was acting as a look-out for other individuals who were distributing narcotics.
Nathaniel Hickman, age 26, of Baltimore, pleaded guilty to his role in the conspiracy and Judge Bredar has scheduled his sentencing on August 19, 2014.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Ashland Woman Sentenced to 32 Years in Prison for Labor Trafficking and Relate Crimes Involving Disabled WomanRead the Press Release
An Ashland, Ohio, woman was sentenced to 32 years in prison for holding a woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor for them, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Jessica L. Hunt, 32, was sentenced to 32 years in prison by U.S. District Judge Benita Pearson. Jordie L. Callahan, 28, was sentenced to 30 years in prison by Judge Pearson earlier this week.
Hunt and Callahan convicted in March following a three-week trial on one count each of conspiracy to violate laws; forced labor and acquiring a controlled substance by deception.
“Labor trafficking cases are significant, and in this case the conduct was reprehensible," Dettelbach said. "People need to understand that exploiting vulnerable people for their own greed is going to lead them to a jail cell. We remain humbled by the strength and dignity of the victims in this case.”
“Today’s sentence is another individual served a dose of justice for subjecting two others to years of inhumane treatment,” Special Agent in Charge Anthony said.
Daniel J. Brown, 35, and Dezerah L. McGuire (formerly Silsby), 33, also of Ashland, both previously pleaded guilty to related crimes are serving sentences in federal prison. Brown was sentenced to five years in prison and McGuire was sentenced to nearly four years in prison.
Callahan and Hunt used a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E., according to the court documents and trial testimony.
Their tactics included beating S.E., threating to beat to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to the court documents and trial testimony.
According to court documents and trail testimony:
Callahan pointed a firearm at S.E.’s head and threatened to kill her if she did not perform the labor and services he and other conspirators commanded. Callahan also forced S.E. on multiple occasions to engage in sex acts with him and threatened that he and Hunt would kill S.E. if she told anyone about the forced sexual acts.
The conspiracy between Callahan, Hunt, McGuire and Brown took place between August 2010 and October 2012. The object of the conspiracy included holding S.E. in a condition of forced labor and involuntary servitude and intentionally causing painful injuries to S.E. so they could use the narcotic pain medications she was prescribed to satisfy their personal drug cravings.
Callahan and Hunt recruited S.E. and B.E. to live with them in their two-bedroom apartment in Ashland, knowing that S.E. suffered a traumatic brain injury that left her with a cognitive disability and that S.E. and B.E. received monthly public assistance payments.
In August 2011, McGuire, at the direction of Callahan and Hunt, smashed S.E.’s hand with a rock with such force that S.E. needed to go to the hospital emergency room. Callahan, Hunt and McGuire then forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated at the emergency room.
In December 2011, Callahan and Hunt injured S.E.’s back with such force that she needed medical treatment. Again, Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated.
In March 2012, Callahan kicked S.E. in the hip with such force that she needed medical treatment. Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated.
On multiple occasions between August 2010 and October 2012, Callahan and Hunt threatened S.E. and B.E. with serious physical harm, including death, if S.E. did not clean up the apartment, care for their numerous pit bull dogs, snakes and other reptiles, purchase items at the store and perform other labor and services ordered by the conspirators.
Callahan and Hunt used a video camera to monitor S.E. and B.E.’s activities and conversations in the apartment. They often forced S.E. to walk to the store to buy groceries, cigarettes, dog food and other items for Callahan, Hunt and Hunt’s four sons and to pay for these purchases with her public assistance card. They allotted S.E. only a brief time period to complete the shopping and warned her she was not allowed to speak with anyone while she was out. They frequently required B.E. to remain with them at the apartment while S.E. was out and threatened physical harm to B.E. and S.E. if S.E. broke any of their rules.
Callahan and Hunt also threatened to contact Ashland County Job and Family Services and have B.E. taken away if S.E. purchased any items at the store other than those they ordered or if she told anyone about their unlawful conduct.
In June 2011, after S.E. and B.E. had attempted to flee the apartment, Callahan and Hunt ordered Brown and McGuire to find S.E. and B.E. and bring them back to the apartment. Brown and McGuire lured S.E. and B.E. into their vehicle by promising to take them to Dairy Queen, only to deposit them afterwards back at the apartment.
On multiple occasions, Callahan and Brown locked S.E. and B.E. in a room with a window that was nailed shut and a door that had been locked from the outside.
In October 2011, Callahan and Hunt forced S.E. to hit her child while they recorded a video, and threatened to inflict much greater physical harm on both S.E. and B.E. if S.E. did not comply.
One month later, Callahan and Hunt again forced S.E. to strike B.E. while they captured a video recording of the staged incident on Callahan’s cell phone. Callahan and Hunt repeatedly threatened have B.E. taken away by showing the videos to authorities in order to secure S.E.’s compliance to the conspirators’ commands.
The case was prosecuted by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.