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Tuesday 22 July 2014
$343,000 Settlement with American International Biotechnology, LLC Resolves False Claims Act AllegationsRead the Press Release
PITTSBURGH – American International Biotechnology, LLC (“AIB”) has agreed to pay the United States $343,739.45 to settle False Claims Act allegations, United States Attorney David J. Hickton announced today.
The settlement resolves allegations that AIB violated the False Claims Act by obtaining improper referrals for genetic tests billed to the Medicare program. The United States alleged that AIB, acting through a contract sales agent, falsely marketed its genetic tests to a Pennsylvania medical practice as part of a free clinical research study for which patients and insurers would not be billed, and later billed those tests to Medicare. The United States further alleged that AIB’s contract sales agent offered payments to an employee of the Pennsylvania medical practice in exchange for referrals of genetic tests, in violation of the Anti-Kickback Statute, a law that prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The claims settled by this agreement are allegations only; there has been no determination of liability.
The settlement also resolves a civil lawsuit filed against AIB under the qui tam, or whistleblower, provisions of the False Claims Act. The lawsuit is captioned U.S. ex rel. Greentree Medical Center, PC v. American International Biotechnology, LLC et al., Civil Action No. 13-597 (W.D. Pa.).
This matter was investigated by the Office of Inspector General of the Department of Health and Human Services, the Federal Bureau of Investigation, and the United States Attorney’s Office for the Western District of Pennsylvania. Assistant United States Attorney David Lew handled this matter on behalf of the United States.
Monday 21 July 2014
Yucca Valley Man Who Worked at Area School Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
RIVERSIDE, California – A school custodian who sexually abused a child over a period of several years and shared visual images of the molestations online pleaded guilty today to federal child pornography charges.
Matthew Frazer, 39, of Yucca Valley, pleaded guilty today to one count of distribution of child pornography and one count of possession of child pornography.
Frazer, who has been in custody since his arrest earlier this year, is scheduled to be sentenced by United States District Judge Virginia A. Phillips on October 6.
Prior to his arrest on January 31, Frazer was employed as a custodian with the Morongo Unified School District. The victim did not attend the schools where Frazer worked.
The investigation into Frazer was initiated last year after the National Center for Missing and Exploited Children provided to the FBI a series of pornographic images depicting a young female being abused by a white male. For several months, investigators attempted to identify the adult male in the images, and the FBI identified Frazier as the suspect earlier this year.
Frazer pleaded guilty to the two felony charges pursuant to a plea agreement, in which he admits filming sexual explicit images of the young female victim from 2008 through 2012. He specific admitted making a video in October 2009, when the victim was 6 years old, and again in 2010 when she was 7.
As a result of today’s guilty pleas, Frazer faces a mandatory minimum sentence of five years for the distribution charge and a statutory maximum sentence of 30 years in prison as a result of his guilty pleas to both counts.
The plea agreement calls for Judge Philips to impose a sentence of at least 10 years and up to 23 years, which will be followed by 10 years of supervised release.
This case is the result of an investigation by the FBI. The following agencies provided assistance during the investigation: the Riverside Police Department; the Riverside County Sheriff’s Department; the San Bernardino Police Department; the San Bernardino County Sheriff’s Department; and the San Bernardino County Probation Department.
Release No. 14-092
Worley Man Sentenced for StabbingRead the Press Release
COEUR D’ALENE – Andrew Hunter Peone, 25, of Worley, Idaho, was sentenced today in United States District Court to 33 months in prison, followed by three years of supervised release for assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced. Peone pleaded guilty on April 29, 2014.
According to the plea agreement, Peone, a Coeur d’Alene tribal member, admitted that on August 22, 2013, he assaulted a man with a knife with the intent to do bodily harm. Peone cut the man several times, resulting in small lacerations to the victim’s arms and hands. The assault occurred on the Coeur d’Alene Indian Reservation.
The case was investigated by the Federal Bureau of Investigation and Coeur d’Alene Tribal Police.
Wichita Chiropractor Pleads Guilty in Health Care Fraud CaseRead the Press Release
TOPEKA, KAN. – A Wichita chiropractor pleaded guilty Monday to defrauding health care insurers of more than $1.3 million, U.S. Attorney Barry Grissom.
Jeffrey D. Fenn, 33, Wichita, Kan., pleaded guilty to one count of health care fraud, two counts of aggravated identity theft and one count of tax evasion. In his plea, he admitted that from March 2011 to October 2013 he executed a health care fraud scheme through his businesses, including Wichita Health and Wellness, Fenn Chiropractic, P.A. and Wichita Pain Associates, P.A. Fenn submitted false claims to Medicare, Blue Cross/Blue Shield of Kansas and Coventry Health Care of Kansas, Inc., and the Federal Employees Health Benefits Program.
Chiropractors have a limited scope of practice. They are not allowed to perform injections, dispense drugs or supervise ARNPs and physicians. Fenn developed what he called an “integrated practice,” hiring physicians, advanced registered nurse practitioners and physical therapists and ostensibly having them perform procedures he was not qualified to perform. He misrepresented to the Kansas Board of Healing Arts that medical doctors had an ownership in his clinic. He used the names of physicians he employed to submit false claims for services.
Fenn fraudulently billed for nerve conduction tests, nerve block injections, subcutaneous infiltrate proceedings, fine needle aspirations and ultrasound procedures.
He also made fraudulent claims for business and personal income taxes. For example, he claimed a $9,400 business expense for purchasing a server. In fact, he spent the money to make a down payment on a residential lot in Wichita. He claimed a $15,100 expense for advertising. In fact he used the money to make a down payment on a ski boat.
Sentencing is set for Oct. 20. Both parties have agreed to recommend a sentence of five years in federal prison and restitution totaling more than $1.8 million.
Grissom commended Health and Human Services, Office of Inspector General, Office of Investigations, the FBI, Defense Criminal Investigative Service, the Food and Drug Administration, the Internal Revenue Service and Assistant U.S. Attorney Tanya Treadway for their work on the case.Washington Man Pleads Not Guilty to Drug ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that an Elma, Washington, man has been indicted by a federal grand jury for Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance.
Bruce Gerald Cole, age 47, was indicted on August 22, 2012. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 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.
On or about between May 1, 2009, and June 5, 2009, in the District of South Dakota and elsewhere, Cole did conspire with others to distribute and possess marijuana.
The charge is merely an accusation and Cole is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Cole was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Unlicensed Trader Pleads Guilty in Los Angeles for Role in Fraudulent High Yield Investment Program SchemeRead the Press Release
An unlicensed trader who solicited $500,000 from undercover FBI agents to invest in a fraudulent high yield investment program pleaded guilty today in federal court in Los Angeles.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California and Assistant Director in Charge Bill Lewis of the FBI’s Los Angeles Field Office made the announcement.
Jessie Tolbert, 38, of Bastrop, Louisiana, pleaded guilty today to one count of conspiracy to commit wire fraud and one count of wire fraud. He is scheduled to be sentenced on Oct. 20, 2014.
According to court documents, in December 2011, Tolbert and his co-conspirators, including Eriq Brye and Greg Preston, placed an advertisement online for an investment opportunity. Undercover federal agents responded to this advertisement. During several weeks of email and telephone communications, Tolbert and his co-conspirators informed the agents that a spot recently had opened up on a high yield investment program they purportedly were running and that a $500,000 investment in their program would generate $30 million in 30 days. Tolbert did not actually run an investment program.
In an effort to induce the undercover agents to invest in the program, Tolbert and his co-conspirators made numerous material misrepresentations. Specifically, Tolbert falsely and repeatedly guaranteed the success of the proposed trade based on his purported past success in generating similar returns in comparable trades, as well as his success in other investments in the financial industry. Tolbert had never applied for, nor received, a license with any federal agency related to the financial industry.
Brye is a fugitive. Preston pleaded guilty in May 2013 for conduct including his role in this investment scheme. He is scheduled to be sentenced on December 19, 2014.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was investigated by the FBI and prosecuted by Assistant Chief Benton Curtis and Trial Attorneys Kyle Maurer and Alex Porter of the Criminal Division’s Fraud Section.United States Attorney's Office and Law Enforcement Target "Molly" (Methylone) Importation and Distribution in the Washington County AreaRead the Press Release
United States Attorney James L. Santelle announced today that 12 defendants were indicted in federal court with Conspiracy to Import and Distribute Methylone, a Schedule I Controlled Substance in violation of Title 21, United States Code, Section 846.
Defendant Age and ResidencyKirk R.C. Mickelson aka “Kurt Cobain,” “Captain Kirk,” Captain”
25, Beloit
22, Beloit
Bryan F. Eason, aka “B,” “Unc,” “Uncle”
40, Illinois
Michael Miller
31, Minneapolis
Leanna Porter
26, Beloit
Connie Ketelsen
49, Beloit
Amy Ketelsen
25, Beloit
Wendell Thompson Eason
52, Hampton, NH
Allen Arthur Strzyzykowski
23, Janesville
Anthony Longtin, aka “Toby,” “Little Hitter"
23, Janesville
Martel Earl, aka “Tel”
24, Beloit
Scott Robert Beckwith, aka “Face”
31, Unknown
According to information released in court, in 2012, the Drug Enforcement Administration and the Washington County Sheriff’s Department began an investigation into a poly-drug group. One of the main drugs the group trafficked in was Methylone. Methylone is also known by the street names “Molly” or “M-1,” and is part of a family of synthetic, designer drugs commonly known as “bath salts.” Methylone is a Schedule I controlled substance.
The indictment alleges that from October 2011 through July 1, 2014, the defendants listed in the table above knowingly and intentionally conspired to import, distribute and possess with intent to distribute Methylone. If convicted each defendant faces up to 20 years imprisonment, a $250,000 fine and a minimum of 3 years supervised release.
In addition, Kirk R.C. Mickelson and Bryan F. Eason (B.F. Eason) were charged with Use and Brandishing of Firearms and Ammunition in furtherance of a Drug Conspiracy, in violation of Title 21, United States Code, Section 846. If convicted they will face an additional 7 years to life imprisonment. B.F. Eason was also charged with Intimidation of a Witness in violation of Title 18, United States Code, Sections 1512 (b)(1) and (2). If convicted B.F. Eason will face an additional 20 years imprisonment, a $250,000 fine and a minimum of 5 years supervised release.
In a separate but related indictment, a thirteenth defendant identified as Robert Bero (age: 21) formerly of West Bend was charged with Conspiracy to Distribute Methylone, in violation of Title 21, United States Code, Section 846 and Distribution of Methylone, a Schedule I Controlled Substance in violation of Title 21, United States Code, Section 841. If convicted he faces up to 20 years imprisonment, a $250,000 fine and a minimum of 3 years supervised release on each count.
The defendants were charged based on a lengthy joint investigation by the Drug Enforcement Administration and the Washington County Multi-jurisdictional Drug Task Force. Also assisting in the investigation were the Rock County Sheriff’s Department, Homeland Security Investigations, the U.S. Postal Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wisconsin Department of Justice - Division of Criminal Investigations, and the Maui Police Department. The case is being prosecuted by Assistant United States Attorney Karine Moreno-Taxman.
In making this announcement, United States Attorney James L. Santelle stated: “This important law enforcement action—identifying, apprehending, and bringing to justice a group of people whose drug dealing and related criminal conduct has compromised the safety and security of communities in Washington County, throughout the Eastern District of Wisconsin, in Hawaii, Illinois, Minnesota, and elsewhere—reflects the continuing, targeted, and effective work that we pursue on behalf of all of the people of our nation. The result of that focused investigative and prosecution strategy is that thirteen defendants have been charged with engaging in a sophisticated conspiracy to distribute Methylone and to profit from the subsequent sale of it. The fact that virtually all of them are now in custody, facing significant prison terms and likely to lose the assets that they have acquired, is rightly viewed as the appropriate and anticipated response to this kind of destructive behavior. It is also representative of the sort of success that we have in combating the illegal acquisition, transfer, sale, and distribution of illegal drugs of all kinds.” Santelle specifically commended the professional work of all of the agencies participating in the investigation of the case and, in particular, the Drug Enforcement Administration and the Washington County Multi-jurisdictional Drug Task Force.
Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration, which includes Wisconsin, praised the dedication and teamwork of the agents, officers and prosecutors involved in this investigation. "The indictments of these 12 individuals, should serve as a notice to criminal networks that allegedly traffic in narcotics that the Drug Enforcement Administration and its law enforcement partners stand shoulder to shoulder in our commitment and we will use every legal avenue available to hold the leaders of those organizations accountable."
An indictment is a method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
U.S. Attorney’s Office Says DNA Evidence Exonerates Man Convicted of 1982 Rape-Murder- Office Calls for Vacating Conviction on Grounds of Actual Innocence -Read the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia today joined in a motion to vacate the 1984 manslaughter conviction of Kevin Martin, based on the grounds of his actual innocence in the rape and murder of a woman in Southwest Washington.
Mr. Martin, now 50, pled guilty in March 1984 in the Superior Court of the District of Columbia to one count of manslaughter while armed in the Nov. 1, 1982 rape-murder of Ursula Brown. He also pled guilty at that time to two counts of armed robbery stemming from other incidents that took place a week later. Although Mr. Martin admitted in court to carrying out the latter armed robberies, he entered what is known as an Alford plea to the manslaughter charge. Under such a plea, the defendant does not admit the allegations, but agrees that the government has enough evidence to secure a conviction.
Mr. Martin was sentenced in July 1984 to a prison term of 15 years to life for manslaughter, and two consecutive terms of 10 years to life on the robbery charges, making his total sentence 35 years to life. He was paroled in 2009.
DNA testing has now led to Mr. Martin’s exoneration of the attack on Ms. Brown.
The U.S. Attorney’s Office joined Mr. Martin today in asking the Court to vacate his manslaughter conviction and issue a certificate of actual innocence for that conviction. The Honorable Robert I. Richter granted the motion at a hearing today.
“Thirty years ago, Kevin Martin was unjustly branded a rapist and murderer,” said U.S. Attorney Machen. “Although Mr. Martin had been justly convicted of a series of armed robberies, the system failed us all when he was wrongfully convicted of a brutal rape and murder and, as a result, spent far too long in prison. DNA analysis has now provided evidence that a serial rapist – not Mr. Martin – committed this outrageous attack. Mr. Martin has steadfastly declared his innocence for three decades, and today we joined him in asking the court to clear his name. This exoneration reinforces the importance of the task force we created in early 2010 to pore through old records to identify wrongful convictions. We continue to urge defense lawyers to come forward with any information about wrongful convictions where DNA testing or other evidence could remedy a wrong that was committed in the past. It is never too late to do justice.”
Ms. Brown, 19, was raped and murdered Nov. 1, 1982. According to the government’s evidence, early that morning, Ms. Brown was driving along Route 295 when her car was intentionally bumped from behind by a black Toyota. When she got out and confronted the driver, she was abducted and taken to the 4300 block of Martin Luther King Avenue SW. She was raped during this incident. When she attempted to escape from her attacker, Ms. Brown was shot in the head and stabbed with a serrated knife along her belly, neck, and arms. Her body was discarded by a dumpster near Chesapeake Street SE, next to an elementary school.
The murder was among a series of crimes committed in late October and November of 1982 in which motorists were bumped and then attacked after stopping their vehicles. A total of eight victims – seven women and one man – were robbed or assaulted in separate incidents between Oct. 31 and Nov. 8, 1982. Ms. Brown was the only victim to be murdered.
The Metropolitan Police Department (MPD) arrested three men in 1982 for taking part in one or more of the crimes. They included Mr. Martin, William Davidson, and Kevin Williams.
Mr. Martin spoke to the police after his arrest on Nov. 10, 1982, and admitted to being involved in three bump-and-rob incidents with Davidson, all on Nov. 8, 1982. The robbery charges stemmed from two of those attacks. He repeatedly denied killing Ms. Brown, however.
In the murder case, the government’s evidence against Mr. Martin included hair fragments removed from Ms. Brown’s shoes. The FBI Laboratory issued a report stating that the fragments exhibited the same microscopic characteristics as samples taken from Mr. Martin.
Davidson pled guilty in January 1984 to felony murder, rape, armed robbery and other charges. Consistent with the results of the hair analysis, Davidson claimed at his plea hearing that he acted as a look-out while Mr. Martin raped and killed Ms. Brown. Davidson is now serving a sentence of 65 years to life.
Williams pled guilty to one count of rape while armed for his role in the bump-and-run incidents with Davidson and an unrelated kidnaping charge; neither of the charges related to Ms. Brown’s murder. He was sentenced to 15 years to life for the crimes. He was paroled in 2004.
At Mr. Martin’s plea hearing, in March 1984, Mr. Martin’s lawyer said that Mr. Martin feared conviction of greater charges, citing the hair analysis. Mr. Martin stated, “I understand that I was wrong in committing the robberies, but I never took part in the murder.” Over the years, he continued to insist that he was innocent of the rape-murder.
In November 2001, Mr. Martin’s current defense counsel, Bernard Grimm, filed a motion seeking to withdraw the 1984 guilty plea and vacate the conviction. At the request of the government and the defense, the Metropolitan Police Department searched for the physical evidence without success. A hearing on Mr. Martin’s motion began in July 2006. Before its conclusion, the government and defense negotiated a resolution calling for Mr. Martin’s sentence to be reduced. Pursuant to that agreement, the Court re-sentenced Mr. Martin to a total of 20 to 60 years in prison. The re-sentencing made Mr. Martin immediately eligible for parole. The U.S. Parole Commission, however, did not parole Mr. Martin until September 2009.
Following the 2009 exoneration of another man convicted of a rape and murder, the U.S. Attorney’s Office for the District of Columbia began a review of older cases in which the FBI had made a positive hair or fiber association. This led to a re-examination of Mr. Martin’s case, and, in November 2013, the U.S. Attorney’s Office again attempted to locate the evidence.
By this time, MPD had performed a comprehensive inventory of all evidence in its possession as part of a transition to a new property warehouse. The hair sample still could not be located. However, through this search, in January 2014, the U.S. Attorney’s Office located semen-positive swabs taken from Ms. Brown’s body.
The office subsequently contacted Mr. Grimm and the Mid-Atlantic Innocence Project to determine if Mr. Martin wanted DNA testing performed. Upon learning that Mr. Martin was interested in DNA testing, the office obtained DNA samples from Mr. Martin as well as Davidson. The DNA testing took place in March and April 2014. The evidence excluded Mr. Martin, but matched the sample provided by Davidson.
DNA testing was not available to the prosecution or defense in 1982. The results now establish that Davidson, not Martin, raped Ms. Brown. The results also undermine Davidson’s claim that he acted as only a look-out at the time of the murder. There is no other credible evidence connecting Mr. Martin to the murder.
This is the first time that a U.S. Attorney’s Office has also resolved all civil claims against the United States simultaneously with a request for a certificate of actual innocence.
14-168Three Pine Ridge Men Indicted on Multiple ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that three Pine Ridge, South Dakota, men were indicted by a federal grand jury on robbery, assault, and abusive sexual contact charges.
Wesley Running Shield, age 28; Michael Alford, age 32; and Lesley Running Shield, age 28, were indicted for offenses that occurred on two seperate occasions at Pine Ridge.
The Running Shields and Alford were indicted for Robbery, Assault with a Dangerous Weapon, and Abusive Sexual Contact. On June 10, 2014, the three stole cell phones from two individuals and assaulted them. Wesley Running Shield and Alford also sexually assaulted a woman at that time.
Wesley Running Shield and Michael Alford were also indicted for Robbery, Assault with a Dangerous
Weapon, and Assault Resulting in Serious Bodily Injury relating to an incident occurring on June 12, 2014, when they assaulted a man and stole his car and money.
The charges are merely accusations and the Defendants are presumed innocent until and unless proven guilty.All three Defendants have appeared before U.S. Magistrate Judge Veronica L. Duffy and pled not guilty to the Indictments. The maximum penalty upon conviction is 15 years’ imprisonment and/or a $250,000 fine, 5 years’ supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The investigations were conducted by the Bureau of Indian Affairs Office of Justice Services. Assistant U.S. Attorney Sarah B. Collins is prosecuting the cases.
The Running Shields and Alford were remanded to the custody of the U.S. Marshals Service pending trial, which has been set for September 16, 2014.
Three Operators of ATM Servicing Business Sentenced to Prison Terms Between 20 and 51 Months for $1.7 Million Frauid SchemeRead the Press Release
CHICAGO ― Three Chicago men are facing federal prison sentences ranging from 20 to 51 months for their roles in a seven-year fraud scheme that caused client banks of their ATM servicing business to lose more than $1.7 million. The last of the three defendants was sentenced today while the other two were sentenced last month.
The defendants, JAMES CARLSON, JOSEPH CABELLO, and THOMAS O’MALLEY, owned and operated ATS Uptime, Inc., from approximately 1999 through 2013, with offices in Chicago and Oswego. ATS had about a dozen clients and serviced approximately 800 ATMs, which included replenishing cash, collecting deposits, and maintain the banking machines.
Carlson, 46, was the president of ATS and beginning in the summer of 2010 was primarily responsible for the company’s vault, and loading cash into and repairing ATMs, including some he owned personally. As the fraud scheme was collapsing, Carlson voluntarily reported it to the FBI in September 2013 and cooperated extensively with the investigation, including recording conversations with Cabello and O’Malley. Carlson was sentenced today to 20 months in prison, beginning Sept. 19, and ordered to pay $658,572 in restitution.
“You cannot steal millions of dollars and not pay a substantial price,” U.S. District Judge Ronald Guzman said today in noting Carlson’s cooperation but rejecting his request for probation.
O’Malley, 42, was the chief financial officer, office manager, bookkeeper, and at times, responsible for the vault in Chicago. He was sentenced last month to 33 months in prison, beginning July 30, and ordered to pay $1,758,572 in restitution.
Cabello, 41, who personally owned some of the ATMs serviced by ATS, ran the Oswego office and was responsible for servicing ATMs. He was sentenced last month to 51 months in prison and ordered to pay $1,758,572 in restitution.
All three men pleaded guilty to one count of wire fraud after they were charged in September 2013.
According to court records, in 2005, Carlson discovered that approximately $200,000 of funds belonging to clients was missing. Around the same time, O’Malley said that he needed to use clients’ funds from the vault to pay for some of ATS’ moving expenses, and Carlson instructed Cabello and O’Malley to return the client funds and was assured they would be returned. In October 2010, shortly after Carlson began working in ATS’ Chicago vault, Carlson learned that ATS was missing approximately $1.1 million and did not have enough money to repay all of its clients. Prior to that time, Cabello and O’Malley had access to the cash in ATS’ Chicago vault.
O’Malley admitted that he stole at least $200,000 of clients’ funds for business purposes and his own personal use. Cabello admitted that he used clients’ funds for his own ATMs, and did not keep track of the amount he took or the amount he repaid.
Between 2007 and 2012, O’Malley and Cabello, and after October 2010, Carlson, used funds belonging to certain clients, which were stored in the vault, to fill ATMs that belonged to other clients, and to repay money owed to other clients, without authorization from the owners of those funds to use their money in that manner. As part of the fraud scheme, the defendants emailed account balance statements to their clients, falsely representing the amount of cash that ATS actually had on hand for them, both because of their thefts and commingling of client funds. They also deceived bank auditors into believing that ATS was properly handling client funds by moving the cash they had available from one owner to another.
The sentences were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Jacqueline Stern.
Three Individuals Charged with Stealing and Illegally Selling GunsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Douglas Church, Zachary Smith, and Brianna Lowe, all of Elmira, N.Y., have been arrested and charged by criminal complaint with conspiring to deal firearms without a license and possession of stolen firearms. In addition, defendants Church and Smith are charged with dealing firearms without a license. The conspiracy charge carries a penalty of five years in prison and a $250,000 fine. Possession of stolen firearms and dealing firearms without a license carry a penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, on October 16, 2013 at approximately 3:05 a.m., the owner of “Scott’s Guns” on Watkins Drive in Horseheads, N.Y. received a telephone call from his security alarm company. The owner alerted police and then went to the store. Upon entering the store, the owner realized he had been burglarized. The owner determined that 49 handguns of various makes and models had been stolen.
As part of their investigation, law enforcement officers reviewed footage from a security camera inside the store which revealed two individuals inside the store during regular business hours the day before, October 15, 2013. Officers recognized the two individuals to be Zachary Smith and Douglas Church. The complaint further states that additional investigation revealed that Church and Zachary Smith burglarized the store by having Church climb through a hole in the wall of the building, with Church handing the weapons to Smith. The two men left the guns in backpacks in a swamp behind the building the night of the burglary, with Smith and his girlfriend, Brianna Lowe, retrieving the guns the following day. Investigation also revealed that many of the guns were sold within a week and a half of the burglary in exchange for money.
The defendants made an initial appearance today before U.S. Magistrate Judge Jonathan W. Feldman. Church and Smith are being held pending a detention hearing on July 28. Lowe was released on conditions.
The Criminal Complaint is the result of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Office, the Horseheads Police Department, under the direction of Acting Chief Scott Zelko, The New York State Police, under the direction of Major Scott Crosier, the Chemung County Sheriff’s Department, under the direction of Christopher Moss, the Elmira Police Department, under the direction of Chief Michael Robertson, the Elmira Heights Police Department, under the direction of Chief A. Rich Churches, and the West Elmira Police Department, under the direction of Chief Peter Michalko.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.St. Mary’s County Drug Dealer Sentenced to 15 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Jeffrey Kirk Berry, a/k/a “Kojack,” age 55, of Lexington Park, Maryland, today to 15 years in prison, followed by five years of supervised release, for conspiring to distribute and possess with intent to distribute powder and crack cocaine; and for being a felon in possession of firearms. Chief Judge Chasanow also found that Berry was an armed career criminal based on three previous drug convictions.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; St. Mary’s County Sheriff Tim Cameron; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to Berry’s plea agreement and other court documents, from February 2012 to April 2013, Berry conspired with Damon Estep, Alrahman Allen, Jamar Holt and others to distribute cocaine and crack in southern St. Mary’s County. Holt provided Allen with cocaine and other drugs and then regularly called Estep to coordinate the delivery of cocaine to Estep, Berry or others from St. Mary’s County.Nearly every week, Berry, Estep and others met Allen in the Glen Burnie area and paid Allen for one-fourth, one-half and one kilogram quantities of cocaine for further distribution in St. Mary’s County by Estep, Berry and others at Estep’s direction. Once Berry and others transported the cocaine back to their stash locations in St. Mary’s County, Estep and others would cook portions of the cocaine into crack, and distribute the cocaine and crack throughout southern Maryland at Estep’s direction.
Estep stored the powder and crack cocaine in several locations, including Berry’s residence at 18310 Three Notch Road in Lexington Park. Berry, Estep and others sold the drugs at locations in southern Maryland.
A search of Berry’s home on April 15, 2013, recovered a 9 mm rifle, two 9mm handguns, a .40 caliber handgun, and a .25 caliber handgun, as well as ammunition for the guns. Due to his previous felony convictions, Berry was prohibited from possessing firearms or ammunition. Berry admits that over the course of the conspiracy he was responsible for the distribution of between five and 15 kilograms of cocaine, and between 280 and 840 grams of crack.
Chief Judge Chasanow sentenced Jamar Holt, a/k/a “Reds,” “Jamal Holt” and “Rex,” age 36, of Baltimore, Maryland, to 20 years in prison and Damon Jerome Estep, a/k/a “Country”, age 39, of California, Maryland, to 188 months in prison. Co-defendant Alrahman Sharif Allen, a/k/a “Rock” and “Rahman Allen,” age 38, of Baltimore, Maryland, previously pleaded guilty to his participation in the conspiracy and awaits sentencing.
United States Attorney Rod J. Rosenstein praised the DEA, St. Mary’s County Sheriff’s Office, and IRS-Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah Jo Bressack and Deborah A. Johnston and James A. Crowell IV, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Shiprock Woman Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Angela Sloane, 30, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty today to an indictment charging her with child abuse.
Sloane was arrested in May 2014, on a criminal complaint alleging that on May 9, 2014, she endangered the lives and safety of two children, a nine-month-old infant and a nine-year-old child, by driving under the influence of alcohol while the children were unrestrained in the back seat of her vehicle. The children did not suffer seriously bodily injury when Sloane crashed the vehicle into a wooden fence and a parked vehicle. She subsequently was indicted and charged committing child abuse by placing the children in a situation that may have endangered their lives or health.
In entering her guilty plea, Sloane admitted driving under the influence of alcohol, with a blood alcohol content of .23, and losing control of the vehicle in which the two children were unrestrained passengers. Sloane admitted placing the children in a situation that endangered their lives by crashing into fencing and a parked vehicle.
At sentencing, Sloane faces a maximum statutory penalty of three years in federal prison. Her sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Special Assistant U.S. Attorney David Adams.
Shiprock Man Pleads Guilty to Firearms and Stalking Charges Arising from Threats Against Former Intimate Partner and her New BoyfriendRead the Press Release
ALBUQUERQUE – Peterson Yazzie, 34, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty today to a two-count felony information charging him with discharging a firearm during a crime of violence and stalking. Under the terms of the plea agreement, Yazzie will be sentenced to eleven years in federal prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
Yazzie was arrested on April 24, 2014, on a criminal complaint alleging that he stalked his former intimate partner, a Navajo woman, by leaving numerous threatening messages in her cellphone voicemail box on April 12, 2014. In some of the messages, Yazzie threatened to shoot the victim and her new boyfriend. The criminal complaint also alleged that Yazzie assaulted the victim’s new boyfriend on April 12, 2014, by firing multiple shots at a vehicle the boyfriend was driving.
During today’s proceedings, Yazzie pled guilty to the two-count felony information. In his plea agreement, Yazzie admitted stalking his former intimate partner on April 12, 2014 by leaving messages on her cellphone voicemail box including one in which he threatened to “put a bullet in her head,” causing the victim to fear that death or seriously bodily injury would occur. Yazzie also admitted that April 12, 2014, he committed a crime of violence by using a rifle to shoot at a vehicle driven by the second victim. Yazzie acknowledged committing both crimes within Navajo Indian Reservation.
Under the terms of his plea agreement, Yazzie will be sentenced to ten years in federal prison on the firearms charge and one year in prison on the stalking charge. The two sentences will be served consecutive to each other for an aggregate sentence of eleven years in prison. Yazzie has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington Office of the FBI and Shiprock office of the Navajo Nation Division of Public Safety, 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.
San Miguel County Man Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Guy N. Martinez, 22, of Las Vegas, N.M., was arrested by the FBI on July 18, 2014, on federal child pornography charges. Martinez made his initial appearance in federal court earlier today, and remains in custody pending a detention hearing scheduled for tomorrow morning.
Martinez is charged in a criminal complaint with possessing, receiving and distributing visual depictions of minors engaged in sexually explicit conduct. According to the criminal complaint, the FBI initiated the investigation leading to Martinez’s arrest after receiving a lead from Queensland Police Service (QPS) in Brisbane, Australia. Following the arrest of an Australian citizen in March 2012, on child pornography charges, the QPS identified more than 100 United States-based email accounts that allegedly had been used to send, receive or discuss child pornography with the Australian citizen. Investigation by the FBI revealed that one of those email accounts was subscribed to Martinez.
The FBI’s investigation revealed that Martinez had two email accounts that allegedly had been used to receive and distribute more than 1,000 images consistent with child pornography. On July 18, 2014, the FBI executed a search warrant at Martinez’s residence in Las Vegas, N.M. They arrested Martinez while executing the search warrant.
If convicted of the charges in the criminal complaint, Martinez faces a federal prison term of not less than five years and not more than 20 years. Martinez also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Santa Fe office of the FBI and the New Mexico State Police with assistance from the QPS. The case is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Resident of Great Britain Sentenced for Stealing Camera Equipment from A Bethesda Production CompanyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Darren Oliver Raymond Charles Defoe, age 40, a citizen and resident of Great Britain, today to a year and a day in prison for interstate transportation of property taken by fraud. Judge Titus also entered an order that Defoe pay $275,000 in restitution.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
Visual Edge Productions was a business located in Bethesda, Maryland, specializing in providing rental cameras and filming equipment. According to his plea agreement, on February 12, 2011, Defoe and a conspirator flew from Heathrow to Dulles airports and arrived at Visual Edge in Bethesda. Defoe and the conspirator took possession of Visual Edge camera equipment pursuant to a rental agreement. On February 13 to 14, they flew back to Heathrow Airport with the rented camera equipment, valued at approximately $275,000, knowing that they had stolen the equipment.Co-defendant William Henry Stickland, age 40, also a citizen and resident of Great Britain, was charged with conspiracy and interstate transportation of property taken by fraud in connection with this scheme. The government intends to seek extradition of Stickland.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Piney Flats Man Sentenced to Serve 14 Months in Prison for Counterfeit Postage SchemeRead the Press Release
GREENEVILLE, Tenn. – On July 21, 2014, Jason Matthew Smalling, 34, of Piney Flats, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 14 months in federal prison.
Upon his release from prison, Smalling was ordered to serve three years of supervised release. He was also ordered to pay $330,000 in restitution to the U.S. Postal Service and pay a fine of $5,000.
Smalling pleaded guilty in October 2013 to an information charging him with devising a scheme to defraud the U.S. Postal Service through the creation of counterfeit postage mailing labels. Smalling operated a business from his residence in Piney Flats, Tenn., called Value Decals. Value Decals created and sold vinyl decals, some being generic graphics and images and others being unlicensed reproductions of trademarked logos of professional sports teams including Major League Baseball, National Football League, National Basketball League, and National Hockey League teams. Value Decals obtained orders for vinyl decals through its website, valuedecals.com, as well as Amazon.com. In addition to paying for the decals, customers were also charged for the costs of shipping the orders through the U.S. Mail. The orders were shipped to the customers by U.S. Postal Service Priority Mail.
Beginning in approximately August 2011, Smalling created counterfeit postage labeling for parcels being mailed by Value Decals. Using computer software, he reproduced information-based indicia from postage obtained through Stamps.com, manipulating the addressee information but using the same bar-coded information from the original postage. This allowed him to mail the packages without paying for postage.
In addition to using the counterfeit postage to mail the parcels to Value Decal’s customers, Smalling continued to collect money from his customers for the costs of mailing as well as reproducing unlicensed trademarked team logos. As a result of the scheme, he defrauded both the U.S. Postal Service for payments of postage and customers of Value Decals for payments for postage.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Neil Smith represented the United States.
Parmelee Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Kevin Two Eagle, age 30, was indicted on April 22, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 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.
On or about January 16, 2014, in Todd County, Two Eagle unlawfully assaulted his dating partner and the assault resulted in serious bodily injury.
The charge is merely an accusation and Two Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Two Eagle was released to a third party custodian pending trial. A trial date has not been set.
Owner of Herndon Engineering Firm Convicted of Paying Bribes to A Government OfficialRead the Press Release
ALEXANDRIA, Va. – Francisco L. Bituin, 58, of Sterling, Virginia, pleaded guilty today to paying bribes to a GSA official in exchange for the official’s assistance in obtaining government contracts for Bituin’s engineering firm.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robert C. Erickson, Jr., Acting Inspector General for the U.S. General Services Administration (GSA); and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.
Bituin is the owner of FLBE, Inc., an engineering firm located in Herndon, Virginia, that has received over $30 million in government contracts since 2003. In a statement of facts filed with his plea agreement, Bituin admitted to paying bribes to a GSA employee who was in a position to recommend FLBE for GSA-managed contracts. The bribes included a $3,750 golf club membership and $2,000 in cash passed by the defendant to the GSA employee during lunch at a Tysons Corner, Virginia restaurant. On another occasion, Bituin offered the GSA employee other things of value in exchange for his assistance in obtaining GSA contracts, including access to a retirement home in Las Vegas, the down payment on a home in Virginia, and 5% of the equity in FLBE.
Bituin faces a maximum penalty of fifteen years in prison when he is sentenced on Nov. 7, 2014.
This case was investigated by GSA’s Office of the Inspector General and the FBI’s Washington Field Office. Assistant U.S. Attorney Paul J. Nathanson is prosecuting the case.
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-236.
Organizer of Bank Heist That Yielded $565,000 Using Staged Kidnapping and Fake Bomb Sentenced to 14 Years in PrisonRead the Press Release
LOS ANGELES – A man who conspired with a former assistant manager of a Bank of America branch in East Los Angeles was sentenced today to 14 years in federal prison for plotting a heist in which his one-time girlfriend wore a fake bomb to simulate a kidnapping to steal approximately $565,000 from the bank.
Reyes “Ray” Vega, 35, of Bell, received the 168-month sentenced from United States District Judge Manuel Real. In addition to the prison term, Judge Real ordered Vega and his co-defendants to pay $556,800 in restitution.
Vega and his then-girlfriend – Aurora Barrera, 33, who now resides in Downey – were convicted in March following a one-week trial in United States District Court. The jury found the couple guilty of conspiracy to commit bank robbery and bank robbery. The jury also found that Vega and Barrera committed the robbery by assaulting a bank employee with a dangerous weapon – the hoax explosive device that Barrera wore when she entered the bank on September 5, 2012.
During the robbery, Barrera walked into the bank with what appeared to be an explosive device taped to her body, convinced a co-worker that she had been kidnapped from her home that morning by two men, and told the co-worker that they had to open the vault and place money outside the bank or else the kidnappers would harm them.
Barrera and her co-worker placed $565,800 of the bank’s money into bags and then threw the bags out the bank’s side door. One of Vega’s longtime friends, Richard Menchaca, picked up the money and drove it away from the bank. Menchaca met up with another accomplice, Bryan Perez, and they moved the money to a safe location.
The device attached to Barrera’s body turned out to be a hoax, but “because the device was attached to a human, the Los Angeles Police Department’s Bomb Squad rushed in without their full protective gear to remove it from Barrera,” according to court documents. “Due to its detailed construction, the Bomb Squad then used a robot to remotely detonate the device, for fear that it might explode and injure a member of law enforcement.”
Menchaca and Perez pleaded guilty and testified at the trial of Vega and Barrera. They are scheduled to be sentenced by Judge Real next month.
Menchaca and Perez collectively received about $150,000 of the robbery proceeds, most of which they spent. The remaining approximately $400,000 has not been recovered.
Barrera is scheduled to be sentenced by Judge Real on August 6.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Huntington Park Police Department.
Release No. 14-091
Oklahoma City Man Charged with Traveling to Colorado to Bring 13-Year-Old to Oklahoma City to Engage in Illicit Sexual ConductRead the Press Release
Oklahoma City, Oklahoma – Late last Friday, a criminal complaint was unsealed charging MARK SUMPTER, 43, from Oklahoma City, with traveling to Colorado to pick up a 13-year-old girl to bring her to Oklahoma City to engage in illicit sexual conduct, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, on June 27, 2014, the Oklahoma City Police Department (OCPD) notified the FBI that they had recovered an endangered 13-year-old runaway girl who was reported missing to the Douglas County Sheriff’s Department in Douglas County, Colorado. It is alleged that an investigation of social media accounts were traced to an IP address located at 1916 Heritage Park Drive, Apartment 249, in Oklahoma City. When OCPD officers responded to the address they found Sumpter and the missing girl. The complaint alleges that Sumpter and the girl communicated through the website chathour.com, Skype (a Voice Over Internet Protocol service that allows users to communicate through a computer or other wifi-compatible device), and Kik (a social media application designed for mobile technology that utilizes usernames, rather than phone numbers, to connect people via instant messaging). It is alleged that after exchanging messages and sexually-explicit photos, Sumpter traveled to Colorado to pick up the girl and return to Oklahoma City where they stayed for several days, from approximately June 21, 2014 through June 27, 2014. It is alleged that during the trip from Colorado to Oklahoma and at the Oklahoma City apartment, Sumpter engaged in illicit sexual conduct with the 13-year-old girl. Reference is made to the criminal complaint for further information.
Sumpter was arrested on July 17, 2014, and appeared before a United States Magistrate in Oklahoma City late last Friday afternoon. He is held without bond.
If convicted, Sumpter faces up to life in prison. The public is reminded that the defendant is presumed innocent unless and until proven guilty.
This case is the result of an investigation by the Douglas County Sheriff’s Department (Colorado), the Oklahoma City Police Department, the Edmond Police Department, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Brandon Hale and Julia E. Barry.
Newark, N.J., Man Pleads Guilty to 11 Armed Robberies in Essex and Hudson CountiesRead the Press Release
TRENTON, N.J. - A Newark man today admitted his role in a series of 11 robberies in Newark, Harrison and Jersey City between September 2012 and April 2013, U.S. Attorney Paul J. Fishman announced.
Christopher Mojica, 23, pleaded guilty to an information charging him with one count of Hobbs Act conspiracy, one count of Hobbs Act robbery and one count of discharging a firearm in furtherance of a crime of violence. He entered his plea today before U.S. District Judge Joel A. Pisano in Trenton federal court.
According to documents filed in this case and statements made in court:
Mojica conspired with others to rob New Jersey commercial establishments as follows:
New Barbershop
Newark
Sept. 14, 2012
Newark
Sept. 2012
Amcare Pharmacy
Newark
Nov. 13, 2012
Summer Pharmacy
Newark
Dec. 11, 2012
Community Health Pharmacy
Newark
Jan. 19, 2013
Delson Jewelry
Newark
Feb. 8, 2013
Pharmacy Plus
Harrison
Feb. 21, 2013
Forest Hill Pharmacy
Newark
April 4, 2013
Montgomery Pharmacy
Jersey City
April 15, 2013
Harris Pharmacy
Newark
April 16, 2013
Delta Gas Station
Newark
April 19, 2013
Mojica and his conspirators robbed each of these establishments at gunpoint, stealing cash, oxycodone pills, jewelry and other items. During the Delta Gas Station robbery on April 19, 2013, Mojica fired a .45 caliber semi-automatic handgun during his flight from the scene of the robbery.
The Hobbs Act conspiracy and robbery charges to which Mojica pleaded guilty each carry a maximum penalty of 20 years in prison. The charge of discharging a firearm in furtherance of a crime of violence carries a minimum consecutive term of 10 years in prison, and a maximum of life in prison. Each of these charges carries a statutory maximum fine of $250,000.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today's plea. He also thanked the Newark, Harrison and Jersey City Police Departments, along with the Essex County and Hudson County Prosecutor’s Offices for their work on this case.
Sentencing before Judge Pisano is scheduled for Dec. 8, 2014.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the Organized Crime/Gangs Unit in Newark.
14- 257
Defense counsel: Paulette Pitt Esq., Woodbridge, New Jersey
Mojica, Christopher Information
Nampa Man Sentenced for Unlawfully Possessing FirearmRead the Press Release
BOISE – Juan Jose Sanchez, 23, of Nampa, Idaho, was sentenced today in United States District Court to 41 months in prison, followed by three years of supervised release for unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Sanchez to forfeit the firearm involved in the offense. Sanchez pleaded guilty to the charge on May 5, 2014.
According to information presented in court, officers with the Nampa Police Department contacted Sanchez on January 14, 2014, when they responded to a complaint at a residence in Nampa. When officers spoke to Sanchez they discovered that he had a loaded handgun tucked in the front of his waistband. Officers seized the handgun and identified it as an H&R, 9-shot, .22 caliber revolver. Sanchez is prohibited from possessing firearms because he was previously convicted of the felony crime of aggravated battery on September 7, 2011, in Canyon County, Idaho. Sanchez was still on parole at the time he possessed the .22 revolver.
The case was investigated by the Nampa Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
Sanchez was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Modesto Man Sentenced in Tax Fraud ConspiracyRead the Press Release
FRESNO, Calif. — Heath Lee Roberson, 39, of Modesto, was sentenced today to two years and nine months in prison by Senior United States District Judge Anthony W. Ishii, for conspiring to submit false claims to the IRS, United States Attorney Benjamin B. Wagner announced. Roberson was also ordered to pay over $66,322 in restitution to the IRS.
According to court documents, from December 2010 to May 2011, Roberson and a co-defendant obtained personal identifying information from more than 40 individuals, used the information to generate false tax returns and submitted them to the IRS. Any tax refunds that they received were deposited into accounts the defendants controlled.
This case was the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Michael G. Tierney prosecuted the case.
Members of Three Different Android Mobile Device App Piracy Groups ChargedRead the Press Release
Three federal indictments were unsealed today in the Northern District of Georgia charging six members of three different piracy groups – Appbucket, Applanet and SnappzMarket – for their roles in the illegal distribution of copies of copyrighted Android mobile device applications, or “apps,” announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia, and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office.
Two members of the SnappzMarket Group – Joshua Ryan Taylor, 24, of Kentwood, Michigan, and Scott Walton, 28, of Cleveland, Ohio – were arrested today. Taylor will appear before U.S. Magistrate Judge Ellen S. Carmody in Grand Rapids, Michigan, and Walton will appear before U.S. Magistrate Judge William H. Baughman, Jr. in Cleveland, Ohio.
“As a result of their criminal efforts to make money by ripping off the hard work and creativity of high-tech innovators, the defendants are charged with illegally distributing copyrighted apps,” said Assistant Attorney General Caldwell. “The Criminal Division is determined to protect the labor and ingenuity of copyright owners and to keep pace with criminals in the modern, technological marketplace.”
“Copyright infringement discourages smart people from doing innovative things,” said U.S. Attorney Yates. “This problem is especially acute when it comes to rapidly developing technologies, like apps for smart phones, and these defendants are now being held accountable for the intellectual property they stole.”
“Today’s federal indictments are the direct result of an extensive and thorough federal investigation into three groups of individuals aggressively engaged in and profiting from the theft of intellectual property,” said Special Agent in Charge Johnson. “While copyright infringement is the direct theft of the hard work of others in the form of research and development expended, it can also negatively impact incentives for further or future development of those ideas or applications. The FBI will continue to provide significant investigative resources toward such groups engaged in such wholesale pirating or copyright violations as seen here.”
An indictment returned on June 17, 2014, by a grand jury in the Northern District of Georgia charges Gary Edwin Sharp II, 26, of Uxbridge, Massachusetts, along with Taylor and Walton, with one count of conspiracy to commit criminal copyright infringement, and also charges Sharp with two counts of criminal copyright infringement. According to the indictment, Sharp, Taylor and Walton identified themselves as members of the SnappzMarket Group. From May 2011 through August 2012, they conspired with Kody Jon Peterson, 22, of Clermont, Florida, and other members of the SnappzMarket Group to reproduce and distribute over one million copies of copyrighted Android mobile device apps, with a total retail value of over $1.7 million, through the SnappzMarket alternative online market without permission from the copyright owners of the apps, who would otherwise sell copies of the apps on legitimate online markets for a fee. A separate information filed on Jan. 23, 2014 charged Peterson with one count of conspiracy to commit criminal copyright infringement, and he pleaded guilty on April 14, 2014.
An indictment returned on June 17, 2014, by a grand jury in the Northern District of Georgia charged James Blocker, 36, of Rowlett, Texas, with one count of conspiracy to commit criminal copyright infringement. According to the indictment, he and his fellow conspirators identified themselves as members of the Appbucket Group. From August 2010 to August 2012, Blocker conspired with Thomas Allen Dye, 21, of Jacksonville, Florida; Nicholas Anthony Narbone, 26, of Orlando, Florida; Thomas Pace, 38, of Oregon City, Oregon; and other members of the Appbucket Group to reproduce and distribute over one million copies of copyrighted Android mobile device apps, with a total retail value of over $700,000, through the Appbucket alternative online market without permission from the copyright owners of the apps, who would otherwise sell copies of the apps on legitimate online markets for a fee. A separate information filed on Jan. 24, 2014 charged Dye, Narbone, and Pace with one count of conspiracy to commit criminal copyright infringement. Dye, Narbone and Pace pleaded guilty to the charged conspiracy on March 10, 2014, March 24, 2014 and April 15, 2014, respectively.
An indictment returned on June 17, 2014, by a grand jury in the Northern District of Georgia charges Aaron Blake Buckley, 20, of Moss Point, Mississippi; David Lee, 29, of Chino Hills, California; and Sharp with one count of conspiracy to commit criminal copyright infringement, and also charges Lee with one count of aiding and abetting criminal copyright infringement and Buckley with one count of criminal copyright infringement. According to the indictment, Buckley, Lee, and Sharp identified themselves as members of the Applanet Group. From May 2010 through August 2012, they conspired with other members of the Applanet Group to reproduce and distribute over 4,000,000 copies of copyrighted Android mobile device apps, with a total retail value of over $17 million, through the Applanet alternative online market without permission from the copyright owners of the apps, who would otherwise sell copies of the apps on legitimate online markets for a fee.
The indictments charge leading members of the SnappzMarket Group, the Appbucket Group, and the Applanet Group with renting computer servers to host websites such as www.snappzmarket.com , www.appbucket.net , and www.applanet.net , respectively, to provide digital storage for the pirated copies of copyrighted Android apps that each group distributed to their members or subscribers. On Aug. 21, 2012, seizure orders were executed against these three website domain names for the illegal distribution of copies of copyrighted Android mobile device apps – the first time website domains involving mobile device app marketplaces have been seized.
Charges contained in an indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI. Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher Bly of the Northern District of Georgia are prosecuting the case, with the assistance of Assistant U.S. Attorney Brian M. Pearce of the Northern District of Georgia. The Office of International Affairs provided assistance in the matter. Significant assistance in the case has also been provided by the CCIPS Cybercrime Lab.Lorain Man Charged with Possession of Child PornographyRead the Press Release
Edward A. Dembiec, 53, of Lorain, Ohio, was charged with possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The criminal information charges that from on or about October 1, 2008, through on or about May 5, 2013, in the Northern District of Ohio, Eastern Division, and elsewhere, Dembiec, did knowingly possess an Apple iMac Desktop computer, an Acer Aspire Laptop computer, and numerous DVD/CD discs that contained child pornography, which had been shipped and transported in interstate and foreign commerce by any means, including by computer, in violation of Title 18, United States Code, Section 2252A(a)(5)(B).
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the United States Postal Inspection Service.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Liberty Man Sentenced for Social Security FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., man was sentenced in federal court today for stealing $84,137 by spending his deceased mother’s Social Security benefits.
Jeffery Schwed, 40, of Liberty, was sentenced by U.S. Chief District Judge Greg Kays to five years in federal prison without parole. The court also ordered Schwed to pay $84,137 in restitution to the government.
On Feb. 11, 2014 Schwed pleaded guilty to theft of government money. Schwed was a joint owner of his mother’s bank account, where her monthly Social Security payments were deposited. Schwed’s mother died on March 16, 2007, but her monthly disabled divorced widow’s insurance benefits continued to be deposited into the bank account for approximately five more years, through April 2012. Schwed admitted that he converted at least some of these payments for his own personal use.
Schwed admitted that he knowingly and intentionally concealed his mother’s death from the Social Security Administration in order to fraudulently obtain Social Security payments that he knew he was not entitled to receive. Schwed was incarcerated when the Social Security Administration made some of its deposits. Approximately $18,000 in ATM withdrawals were made by unknown persons during the periods while Schwed was incarcerated.
This case was prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by the Social Security Administration, Office of Inspector General.Lake Andes Man Sentenced to 120 Months for Distribution of MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lake Andes, South Dakota, man convicted of Distribution of a Controlled Substance was sentenced on July 21, 2014, by U.S. District Judge Karen E. Schreier.
Michael Todd Andrews, age 42, was sentenced to 120 months in custody, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Andrews was indicted for Distribution of a Controlled Substance by a federal grand jury on December 3, 2013. He pled guilty on April 28, 2014.
Andrews sold methamphetamine to a confidential source working with the Federal Bureau of Investigation (FBI) in Lake Andes in January 2013.
This case was investigated by the FBI, Bureau of Indian Affairs, South Dakota Division of Criminal Investigation, Charles Mix County Sherriff’s Office, and the Wagner Police Department. Special Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Andrews was immediately turned over to the custody of the U.S. Marshals Service.
Korean National Sentenced for Investment FraudRead the Press Release
FRESNO, Calif. — Kwan Yong Choi, 72, of Fresno, was sentenced today by United States District Judge Anthony W. Ishii to three years in prison for money laundering, United States Attorney Benjamin B. Wagner announced. Choi was also ordered to pay $2.1 million in restitution to 13 victims of his investment fraud scheme here in the United States.
On June 10, 2006, Choi was arrested in Fresno based on an extradition order from the Republic of Korea for a fraud scheme he had perpetrated there. Choi waived extradition and was returned to Korea in June 26, 2006, where he served four years in prison for fraud, marriage fraud and visa fraud. On May 27, 2010, a federal grand jury in Fresno returned a six-count indictment against Choi charging him with money laundering related to a fraud scheme that targeted elderly Korean nationals living in the United States. Federal agents escorted Choi back to Fresno after he finished serving his sentence in South Korea.
“The reality that this fraudster faces a lengthy term in federal prison should provide a measure of consolation for the defendant’s victims, some of whom lost their life saving as a result of his scams,” said Nick Annan, acting special agent in charge for Homeland Security Investigations San Francisco. “Today’s sentencing is particularly gratifying, given that it’s the culmination of seven years of intensive investigation carried out on two continents.”
According to court documents, in 2002, Choi, formerly of Daejeon City, South Korea, began marketing an investment scheme whereby investors could invest money into his company, Sun Min Trading Inc. Choi told investors that the company bought souvenirs and sold them to the White House. He claimed that the venture would make 30 percent profit with 10 percent going to a purported charity named “International Christian Mission Center,” and 20 percent going to investors every quarter. He specifically targeted persons of Korean descent and marketed investment opportunities to potential clients in California and elsewhere by making various false representations, including that the “International Christian Mission Center” was an extension of the CIA, that he was an ordained minister, that he had a history of investment successes, and that the investments were secure.
Instead of investing the money as promised, Choi spent the funds on his own personal and business expenses, including payments for homes, cars, and credit card bills. He lulled investors into thinking that their investments were making a return by sending false account statements, sending payments, or giving excuses as to why payments were delayed. As a result of the scheme, investors lost more than $2 million.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Fresno-based HSI special agents received substantial assistance from HSI’s attaché office in Seoul as well as from the Republic of Korea’s Ministry of Justice. Assistant United States Attorneys Mark E. Cullers and Heather M. Jones prosecuted the case.
Kansas City, Kan., Man Gets 15 Years in Federal Prison in Drug Trafficking CaseRead the Press Release
KANSAS CITY, KAN. – A Kansas man who was part of a drug trafficking organization that distributed more than $1.6 million’s worth of cocaine, crack and marijuana in the Kansas City, Kan., area was sentenced Monday to 15 years in federal prison.
Rahmann Easley, 35, Kansas City, Kan., pleaded guilty to one count of conspiracy. In his plea, he admitted that he was a member of a drug trafficking organization headed by co-defendant Gregory Moore that operated in the Kansas City metropolitan area from 2006 through 2012. Easley and his brother, co-defendant Charles Easley, purchased cocaine from Moore. On March 27, 2012, a search of Easley’s car turned up 29.5 grams of cocaine, 24.6 grams of crack and 31.5 grams of marijuana.
Easley agreed to a money judgment against him of more than $1.6 million, which represents the proceeds of the crime.
Co-defendants who have been sentenced include:
Damian Mays: 220 months.
Frank Sharron Piper, III, 24, Kansas City, Kan: 135 months.
Charles Easley, 38, Kansas City, Kan.: 121 months.
Christopher Holliday, 26: 114 months.
Brenton Bassett, 38, Kansas City, Kan.: 84 months.
Michael D. Davis, 33, Kansas City, Kan., 40 months.
Johnie Mitchell, 60, Kansas City, Kan.: 35 months.
Oudre Durham, 40, Kansas City, Kan.: 30 months.Grissom commended the FBI, the Kansas City, Mo., Police Department Career Criminal Squad, the Social Security Administration, the Kansas City, Kan., Police Department, Assistant U.S. Attorney Sheri McCracken, Special Assistant U.S. Attorney Trent Krug and Assistant U.S. Attorney Bruce Rhoades of the Western District of Missouri for their work on the case.
Justice Department Seeks to Shut Down Los Angeles Area Tax Return PreparerRead the Press Release
The United States has asked a federal court in Los Angeles to bar Elton L. Barnes Jr. from preparing tax returns for others, the Justice Department announced today.
In 2002, Barnes pleaded guilty to aiding and assisting in the preparation of false tax returns, but he resumed preparing returns when he was released from prison, the government alleges. Since then, according to the complaint, Barnes has repeatedly prepared federal income tax returns, sometimes working under the names McNair Group, So Cal Financial Services and Anderson Investment Group, with fraudulent claims such as falsely inflated charitable contribution deductions and losses from imaginary home businesses. The complaint further alleges that Barnes has prepared returns that intentionally overstate the amount of federal income tax that has been withheld from his clients’ paychecks in order to claim a larger refund.
According to the complaint, the Internal Revenue Service (IRS) has chosen to audit more than 180 tax returns that Barnes prepared and that have been filed since his release from prison in 2009. The complaint also alleges that, although it has not completed its audits of all those returns, the IRS has already identified almost $2 million in false refund claims and understatements of taxes owed.
The complaint also alleges that Barnes met with a customer and obtained the customer’s personal identifying information, including his name, address and social security number. Allegedly, without the customer’s knowledge, Barnes then used the customer’s information to file a tax return that directed the IRS to deposit the claimed tax refund into Barnes’ bank account. The United States has identified more than 50 tax refunds that were deposited into bank accounts Barnes controls, although some deposits may have been made with the knowledge of Barnes’ clients. It is against federal law for a tax return preparer to deposit a client’s tax refund into his own bank account. According to the complaint, Barnes violated other laws that apply to return preparers by failing to sign returns he prepared or use his preparer tax identification number on them.
Return-preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Elton L. Barnes Jr.
United States Complaint for Permanent Injunctive ReliefJury Convicts Man of Impeding Boston Marathon Bombing InvestigationRead the Press Release
A federal jury in Boston has convicted a friend of alleged Boston Marathon bomber, Dzhokhar Tsarnaev, for impeding the bombing investigation.
Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division, U.S. Attorney Carmen M. Ortiz of the District of Massachusetts and Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Division, made the announcement today.
The jury found Azamat Tazhayakov, 20, guilty of conspiring to obstruct justice and obstructing justice with the intent to impede the Boston Marathon bombing investigation. U.S. District Judge Douglas P. Woodlock scheduled sentencing for October 16, 2014.
In August 2013, Tazhayakov was indicted for obstructing a terrorism investigation. Tazhayakov is a national of Kazakhstan who was temporarily living in the United States on a student visa while attending the University of Massachusetts Dartmouth, but at the time of his arrest his visa had been revoked.
The evidence at trial proved that on April 18, 2013, after the release of photographs of the two men suspected of carrying out the Marathon bombings (who were later identified as Tamerlan Tsarnaev and Dzhokhar Tsarnaev), Tazhayakov and others went to Tsarnaev’s dormitory room and found items that linked Tsarnaev to the bombing, including fireworks from which “gunpowder” appeared to have been removed and a jar of Vaseline that they believed could be used to make bombs. A forensic examiner testified that Vaseline can be used to make improvised explosive devices. A month before the bombing, Tsarnaev had told Tazhayakov that it would be good to die as shaheed (martyr) and that he knew how to build a bomb. Tsarnaev also identified specific ingredients one could use to make a bomb, including “gunpowder.”
After searching Tsarnaev’s dormitory room on the evening of April 18, 2013, Tazhayakov helped remove Tsarnaev’s laptop and a backpack containing fireworks, a jar of Vaseline, and a thumb drive. Later that night while Tazhayakov was monitoring the manhunt for the Tsarnaev brothers, he discussed getting rid of the backpack containing the fireworks and agreed to get rid of it. The backpack was then placed in a garbage bag and then thrown into a dumpster outside Tazhayakov’s New Bedford apartment. The FBI recovered this backpack a week later, after 25 agents spent two days searching a landfill in New Bedford.
The charging statute provides a sentence of no greater than 20 years in prison on the obstruction of justice count and five years on the conspiracy count, three years of supervised release, and a fine of $250,000 for each charge. Tazhayakov will also be deported at the conclusion of this prosecution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This investigation was conducted by the FBI's Boston Division and member agencies of the Boston Joint Terrorism Task Force (JTTF) which is comprised of more than 30 federal, state and local enforcement agencies. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Massachusetts State Police, University of Massachusetts Dartmouth Department of Public Safety, New Bedford Police Department, Dartmouth Police Department, U.S. Department of Transportation – Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), Essex County Sheriff’s Office, and Internal Revenue Service, Criminal Investigations, provided assistance to this investigation.
T he case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.Jury Convicts Man of Impeding Boston Marathon Bombing InvestigationRead the Press Release
BOSTON – A federal jury in Boston has convicted a friend of alleged Boston Marathon bomber, Dzhokhar Tsarnaev, for impeding the bombing investigation.
The jury found Azamat Tazhayakov, 20, guilty of conspiring to obstruct justice and obstructing justice with the intent to impede the Boston Marathon bombing investigation. U.S. District Judge Douglas P. Woodlock scheduled sentencing for October 16, 2014.
In August 2013, Tazhayakov was indicted for obstructing a terrorism investigation. Tazhayakov is a national of Kazakhstan who was temporarily living in the United States on a student visa while attending the University of Massachusetts Dartmouth, but at the time of his arrest his visa had been revoked.
The evidence at trial proved that on April 18, 2013, after the release of photographs of the two men suspected of carrying out the Marathon bombings (who were later identified as Tamerlan Tsarnaev and Dzhokhar Tsarnaev), Tazhayakov and others went to Tsarnaev’s dormitory room and found items that linked Tsarnaev to the bombing, including fireworks from which “gunpowder” appeared to have been removed and a jar of Vaseline that they believed could be used to make bombs. A forensic examiner testified that Vaseline can be used to make improvised explosive devices. A month before the bombing, Tsarnaev had told Tazhayakov that it would be good to die as shaheed (martyr) and that he knew how to build a bomb. Tsarnaev also identified specific ingredients one could use to make a bomb, including “gunpowder.”
After searching Tsarnaev’s dormitory room on the evening of April 18, 2013, Tazhayakov helped remove Tsarnaev’s laptop and a backpack containing fireworks, a jar of Vaseline, and a thumb drive. Later that night while Tazhayakov was monitoring the manhunt for the Tsarnaev brothers, he discussed getting rid of the backpack containing the fireworks and agreed to get rid of it. The backpack was then placed in a garbage bag and then thrown into a dumpster outside Tazhayakov’s New Bedford apartment. The FBI recovered this backpack a week later, after 25 agents spent two days searching a landfill in New Bedford.
The charging statute provides a sentence of no greater than 20 years in prison on the obstruction of justice count and five years on the conspiracy count, three years of supervised release, and a fine of $250,000 for each charge. Tazhayakov will also be deported at the conclusion of this prosecution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz, Assistant Attorney General for National Security John Carlin and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. This investigation was conducted by the FBI's Boston Division and member agencies of the Boston Joint Terrorism Task Force (JTTF) which is comprised of more than 30 federal, state and local enforcement agencies. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Massachusetts State Police, University of Massachusetts Dartmouth Department of Public Safety, New Bedford Police Department, Dartmouth Police Department, U.S. Department of Transportation – Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), Essex County Sheriff’s Office, and Internal Revenue Service, Criminal Investigations, provided assistance to this investigation.
The case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.
Inland Empire Man Who Admitted Sex Trafficking of A Child Who Worked as Prostitute Sentenced to 17½ Years in Federal PrisonRead the Press Release
RIVERSIDE, California – A resident of Quail Valley who pleaded guilty to sex trafficking charges – and admitted forcing a 14-year-old girl to work as a prostitute – was sentenced today to 210 months in federal prison.
Kawaum Marquez Scott, 24, received the 17½-year sentence from United States District Judge Virginia A. Phillips.
Scott pleaded guilty in May to two counts of sex trafficking of a child.
Scott’s codefendant – Nekeyia Necole Weatherspoon, who also used the name “Keey Bee,” 22, of Perris – pleaded guilty at the same time to one count of conspiracy to engage in child sex trafficking.
According to court documents, Scott and Weatherspoon forced a 14-year-old victim into prostitution. The defendants, who took photos of the victims and used the pictures to advertise services on the Internet, drove the victim to destinations in Hemet to engage in prostitution, made her use an alias, and advised her to tell male customers that she was 18 years old. Scott and Weatherspoon took all the money paid to the girl for the sex acts.
According to court documents, on one occasion in October 2012, Scott and Weatherspoon brought the victim to a motel in Hemet, where she engaged in sex with multiple men over a two-day period, and received approximately $2,500 in payment, all of which went to the defendants.
“Scott knowingly sold a child to adult men for sex,” prosecutors wrote in a sentencing memorandum filed with the court. “He did so repeatedly and without regard for her safety or well-being. He provided her with drugs and alcohol while she worked for him. He threatened the child victim and her family, and at one point used force to retrieve money from her that he perceived to be his.”
Weatherspoon is scheduled to be sentenced by Judge Phillips on September 8. In a plea agreement for Weatherspoon, prosecutors and the defense agreed that she should be sentenced to between 84 and 168 months in federal prison.
The investigation in this case was conducted by the Riverside County Sheriff’s Department and the Federal Bureau of Investigation, which are members of the Inland Child Exploitation Task Force (ICEP), a multi-agency effort that investigates matters of child exploitation, primarily the sexual trafficking of minors.
Release No. 14-093
Hattiesburg Man Sentenced on Child Pornography ChargesRead the Press Release
Hattiesburg, Miss - Grantham Armstrong Mitchell, 20, of Hattiesburg, was sentenced today in U.S. District Court to 15 years in federal prison for production of child pornography and 7 years for possession of child pornography, announced U.S. Attorney Gregory K. Davis and FBI Acting Special Agent in Charge Johnnie Sharp. The two sentences will be served concurrently and followed by an eight year term of supervised release. Mitchell was also ordered to pay restitution in the amount of $1,591.
Mitchell previously pled guilty to producing a video of himself and a minor child engaging in sexually explicit conduct in Orange Beach, Alabama in 2012. He also possessed numerous images and videos of minor children, as young as twelve years old, engaging in sex with adults.
The investigation in this case began when a complaint was received from the National Center for Missing and Exploited Children regarding possible child pornography being uploaded to a Dropbox account via the Internet. An investigation was conducted by members of the FBI’s Child Exploitation Task Force (CETF) which is comprised of special agents of the FBI and investigators from the Mississippi Attorney General’s Office and the Rankin County Sheriff’s Office. The investigation led to the execution of a search warrant for a computer and other electronic devices owned by Mitchell. A forensic review of the computer determined that it contained images and videos of suspected child pornography and led to the identity of the minor child in the video produced by Mitchell. The case was prosecuted by Assistant United States Attorney Glenda Haynes.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Glenarden Crack Dealer Sentenced to 6 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Clifton Robotham, age 41, of Glenarden, Maryland, today to six years in prison, followed by four years of supervised release, for possession with intent to distribute crack cocaine.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Robotham’s plea agreement, on August 30, 2012, aPrince George’s County Police Department (PGPD) officer attempted to conduct a traffic stop of a vehicle being driven by Robotham. Rather than pull over, Robotham attempted to elude the officers, eventually driving to the end of a dead end street, then exiting the vehicle and running away. A PGPD officer in the neighborhood saw Robotham running through a nearby yard, caught up to Robotham and placed him under arrest. Robotham resisted arrest refusing commands to place his hands behind his back. While he was resisting arrest, Robotham put a plastic bag of crack cocaine in his mouth and began to chew the bag. Robotham was eventually handcuffed and he spit out the plastic bag. The bag and the crack cocaine Robotham had spit out on the grass were recovered, along with a plastic bag containing eight smaller bags of crack cocaine that was recovered from his pants pocket.The total weight of the crack cocaine recovered from Robotham was 53.55 grams.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore and the Prince George’s County Police Department, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kelly O. Hayes and Mara Zusman Greenberg, who prosecuted the case.
Fort Yates Man Pleads Guilty to Sexual Abuse of a MinorRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on July 24, 2014, Isaiah Standing Crow, 18, Fort Yates, N.D., pleaded guilty before U. S. District Judge Daniel L. Hovland to a charge of sexual abuse of a minor.
Between March 30, 2014, and April 2, 2014, Standing Crow engaged in sexual acts with a minor on the Standing Rock Indian Reservation. Sentencing for Standing Crow has been scheduled for Nov. 14, 2014, in U.S. District Court in Bismarck, N.D., at 1:30 p.m.
The charge of sexual abuse of a minor carries a statutory maximum penalty of 15 years in federal prison and a fine of up to $250,000.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency.
Assistant U. S. Attorney Gary Delorme is prosecuting the case.
Fort Thompson Man Sentenced for Felon in Possession of FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Felon in Possession of Firearm was sentenced on July 14, 2014, by U.S. District Judge Roberto A. Lange.
Peter Leslie Coleman, a/k/a Perry Coleman, age 51, was sentenced to time served (47 days), 18 months of supervised release, a $250 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Coleman was indicted by a federal grand jury on December 10, 2013. He pled guilty on April 23, 2014.
The conviction stems from an incident on November 12, 2013, when a Bureau of Indian Affairs (BIA) Agent observed that Coleman failed to stop at a stop sign at an intersection within the exterior boundaries of the Crow Creek Indian reservation. A traffic stop was conducted and the agent observed Coleman move a rifle from the front passenger side of the vehicle to the floor board area behind the driver’s seat. Coleman admitted he was hunting that morning, and knew he was prohibited from possessing a firearm.
The investigation revealed that Coleman was convicted of Possession with Intent to Distribute a Controlled Substance in U.S. District Court, District of South Dakota, on July 10, 1992, and was sentenced to 32 months in custody.
This case was investigated by the BIA, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Former West Virginia Dhhr Employee Pleads Guilty to FraudRead the Press Release
CHARLESTON, W.Va. – Shannon Collins, 41, of Logan, West Virginia, plead guilty today in federal court in Charleston to defrauding the West Virginia Department of Health and Human Resources (DHHR). In 2009, Collins, also known as Shannon Varney, worked as a case worker for the DHHR office in Logan County. Using the social security number of two deceased individuals, Collins set up bogus accounts upon which she made claims for benefits, and had the checks mailed to her. Collins also obtained Mountain State Cards (formerly known as the food stamp program), which she used from April to December of 2009. The total combined loss was in excess of $58,000.
Collins faces a maximum penalty of 30 years confinement and a potential fine of up to $500,000. Sentencing has been scheduled for October 29, 2014.
The investigation was conducted by the West Virginia DHHR, assisted by the United States Postal Inspection Service, and the United States Offices of Inspector General for the Department Health and Human Services, the Social Security Administration and the Department of Agriculture. Assistant United States Attorney Erik S. Goes is in charge of the prosecution.
Former Tennessee Department of Transportation Contract Employee Sentenced to Two Years in PrisonRead the Press Release
NASHVILLE, Tenn. – July 21, 2014 - Michael W. Young, 55, formerly of Nashville, Tenn. and currently residing in Clermont, Florida, was sentenced on July 15, 2014, to serve two years in prison for stealing $974,000 of federal funds designated for state roadway projects and for laundering funds derived from that crime, announced U.S. Attorney David Rivera. Young was also ordered to pay $221,690 in restitution to the State of Tennessee, which is the balance of the stolen funds that were not recovered.
“Criminal breaches of public trust and theft of taxpayers’ money intended for the benefit of residents of the Middle District of Tennessee occupy a high priority with this office,” said U.S. Attorney David Rivera. “Our law enforcement partners will continue to investigate such crimes and bring violators to justice.”
Young was employed from 2004 until 2012 as a contract agent for Tennessee and was responsible for purchasing property rights-of-way for road expansions for the Tennessee Department of Transportation (TDOT), with funding provided by the United States. Young admitted to Chief Judge Joseph Haynes that after the property owner agreed to sell the rights-of-way, TDOT issued checks to him to complete the purchase but instead, he used the funds for his own personal and business expenses. Young admitted that he diverted these TDOT funds from 2004 until 2012, when an audit disclosed the thefts and the total diverted funds had reached $974,000. Young concealed and covered the shortages of cash needed for property purchases with new funds later provided by TDOT that were intended for subsequent transactions, in the fashion of a typical “Ponzi” scheme.
Young was initially charged in criminal information filed on December 2, 2013.
“Some people think that stealing from the government is a victimless crime - it’s not,” said Christopher A. Henry, Special Agent- in- Charge of the IRS-Criminal Investigation. “The victims in this case are every taxpayer of the State of Tennessee. I hope this sentence sends a clear message to those who would consider conducting or participating in this type of fraudulent activity. It will not go undetected and they will be held accountable.”
TDOT Commissioner John Schroer commended the efforts leading to the conviction adding, "State agencies must be diligent in identifying schemes to defraud the public. This conviction is the result of coordinated efforts by department staff and federal authorities."
This case was jointly investigated by the U.S. Department of Transportation- Office of Inspector General, the FBI, the IRS-Criminal Investigations and the Tennessee Department of Transportation. The case was prosecuted by Assistant U.S. Attorney Hilliard Hester.
Former Senior Executive of Qualcomm Pleads Guilty to Insider Trading and Money LaunderingRead the Press Release
Jing Wang, 51, the former Executive Vice President and President of Global Business Operations for Qualcomm Inc., today pleaded guilty to insider trading in shares of Qualcomm and Atheros Communications Inc. Wang also pleaded guilty to laundering the proceeds of his insider trading using an offshore shell company.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney L aura E. Duffy of the Southern District of California made the announcement. Wang pleaded guilty today in federal court in San Diego before U.S. District Judge William Q. Hayes .
“Not satisfied with his lucrative executive position at Qualcomm, Jing Wang traded on insider information about the company’s acquisitions and earnings to gain an illegal advantage in the financial market,” said Assistant Attorney General Caldwell. “Wang then laundered close to $250,000 in insider trading profits, and created a cover-up story to hide his crimes. We will continue to prosecute those who believe they can make easy money by breaking the laws that ensure a level playing field in the financial marketplace.”
“Jing Wang blatantly and repeatedly abused the trust placed in him by Qualcomm and the company’s shareholders,” said United States Attorney Duffy. “To make matters worse, he then misused the financial system to conceal his insider trading profits and enlisted his brother and stock broker to obstruct several investigations. Wang’s obstructive acts, though ultimately unsuccessful, were serious affronts to the rule of law. We will continue to use our excellent partnerships with the Criminal Division, the FBI, IRS-CI and our other law enforcement partners to not only prosecute securities fraud, but also disrupt attempts like Wang’s to obscure criminal conduct from the eyes of government investigators.”
According to court documents, Wang committed insider trading on three separate occasions over a ten-month period in 2010 and 2011. In early 2010, Wang purchased approximately $277,739 of Qualcomm stock prior to the company’s unexpected announcement of a dividend increase and stock repurchase program. In December 2010, while in Hong Kong, Wang purchased Atheros stock hours after Qualcomm’s Board of Directors made a non-public offer to purchase Atheros. Just a few weeks later, in January 2011, Wang directed his stock broker, Gary Yin, to sell the Atheros stock in a brokerage account held in the name of an offshore entity, Unicorn Global Enterprises, and used the proceeds to purchase Qualcomm stock, one day before Qualcomm announced record earnings results. In total, Wang illegally gained approximately a quarter of a million dollars from these three illegal transactions.
Wang also pleaded guilty to money laundering resulting from transferring the illegal proceeds in the Unicorn account – over $525,000 – to another nominee brokerage account in the British Virgin Islands for Clearview Resources Ltd. Wang also admitted in his plea agreement to obstructing justice by conspiring with his brother, Bing Wang, and Yin to fabricate evidence and concoct a false cover story that Bing Wang conducted the illegal stock trades. Sentencing is scheduled for Nov. 17, 2014.
Wang was originally indicted in September 2013. Bing Wang, who is currently believed to reside in China, remains charged and is wanted on an international arrest warrant. Gary Yin pleaded guilty to conspiring with Jing Wang and Bing Wang to obstruct justice and launder money, and is currently scheduled to be sentenced on Sept. 15, 2014.
The department appreciates the substantial assistance it received from the Securities and Exchange Commission’s Los Angeles Regional Office.
This case was investigated by the FBI’s San Diego Field Office and the Internal Revenue Service-Criminal Investigation’s San Diego Field Division. The case is being prosecuted by Trial Attorney James P. McDonald of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eric J. Beste of the Southern District of California.Former Rosemead Mayor Sentenced to Prison in Corruption Case Involving Cash Payments, Witness Tampering, Lies to InvestigatorsRead the Press Release
LOS ANGELES – The former mayor of the City of Rosemead was sentenced today to 21 months in federal prison after pleading guilty to attempted witness tampering and making false statements to FBI agents conducting a corruption investigation.
John Tran, 38, of Rosemead, was sentenced this morning by United States District Judge Dale S. Fischer.
Tran pleaded guilty late last year to the witness tampering and false statement charges. In a plea agreement filed in United States District Court, Tran acknowledged that he received approximately $38,000 in payments from a developer in exchange for Tran’s promise to help her obtain permits for a project.
The witness tampering resulted from Tran asking the developer to lie to a federal grand jury by denying that she had recently met with Tran or paid Tran any money.
Tran made false statements to the FBI in 2011 when special agents went to his home to conduct an interview and Tran denied receiving anything but campaign contributions from the developer.
Tran was elected to the Rosemead City Council in 2005 and was mayor of Rosemead from 2007 to 2009.
In addition to the prison term, Judge Fischer ordered Tran to pay $38,000 in restitution, most of which has already been recovered by the FBI.
The case against Tran was investigated by the Federal Bureau of Investigation.
Release No. 14-089
Former Officer Sentenced for Excessive Force and Obstruction ChargesRead the Press Release
Lindrith Tsoodle, 58, was sentenced today by U.S. District Judge Daniel Hovland to serve 15 months in prison for two incidents in which he used excessive force against an arrestee and for lying to a federal agent. Tsoodle was further ordered to serve two years of supervised release following completion of his prison term. On April 1, 2014, a federal jury convicted Tsoodle on these three charges.
Tsoodle was a police officer with the Three Affiliated Tribes Police Department in New Town, North Dakota, on the Fort Berthold Reservation. He was convicted of twisting the neck of a handcuffed suspect, throwing him to the ground and dropping a knee on him. He was also convicted of, on a separate occasion, excessively tightening the handcuffs of an arrestee, slamming him against the wall, using pepper spray on the arrestee and striking him with his hands and a baton. Both of these actions occurred while the suspects were restrained. Tsoodle was also convicted of telling various false statements to a U.S. Bureau of Indian Affairs Special Agent, who interviewed the defendant regarding one of the assaults.
“Our system of government requires police officers to abide by the laws they enforce and to protect the constitutional rights of all persons in their custody,” said Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division. “This officer used his official position to commit civil rights abuses and then lied about his actions. The Department of Justice will continue to prosecute vigorously law enforcement officers who use their power to violate federal law.”
“With our colleagues at the Civil Rights Division, the U.S. Attorney’s Office is committed to protecting the civil rights of the citizens on the reservations in North Dakota,” said U.S. Attorney Timothy Purdon for the District of North Dakota. “This prosecution shows that our commitment to public safety on the reservations is matched by our commitment to a vigorous enforcement of civil rights of all people.”
This case was investigated by the Minot Resident Agency of the Minneapolis Division of the FBI and was prosecuted by Trial Attorneys Gerald Hogan and Nicholas Durham of the Civil Rights Division.
Former Financial Advisor from Gloucester County, N.J., Pleads Guilty to $900,000 Investment FraudRead the Press Release
CAMDEN, N.J. – A former financial advisor from Mantua, New Jersey, admitted today to defrauding his clients of more than $900,000 by diverting their investment checks for his personal use, U.S. Attorney Paul J. Fishman announced.
John Montague, 59, pleaded guilty today to an information charging him with one count of wire fraud. Montague entered his guilty plea before U.S. District Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and statements made in court:
Montague was licensed to sell mutual funds, variable annuities, and insurance premiums – but at no time was he licensed to sell corporate or municipal securities, direct participation programs or options. Montague engaged in a scheme to defraud his clients by soliciting and inducing them to purchase investment vehicles Montague knew he was not authorized to sell. Montague described the investment vehicles to his clients as guaranteed investments and promised a rate of return of approximately six percent. Montague instructed his clients to make their investment checks payable to him. He then deposited the checks into his personal bank accounts. To maintain the clients’ confidence in the investments, Montague issued periodic “dividend” checks to his clients.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 28, 2014.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, for the investigation leading to today’s guilty plea.
The government is represented by Attorney in Charge R. Stephen Stigall of the U.S. Attorney’s Office Criminal Division in Camden.
14-256Defense counsel: John J. Waldron Esq., Allentown, Pennsylvania
Montague, John Information
Former Bank of America Employee Sentenced to 30 Months in Federal Prison for Taking Bribes to Approve Artificially Low-Price Short SalesRead the Press Release
LOS ANGELES – A former Bank of America employee was sentenced this morning to 30 months in federal prison for taking more than $1.2 million in bribes to approve artificially low-price short sales of properties on which the bank held mortgages.
Kevin Lauricella, 29, of Thousand Oaks, was sentenced by United States District Judge Otis D. Wright II. In addition to the 2½-year prison term, Judge Wright ordered Lauricella to pay $5.7 million restitution to Bank of America and to forfeit his residence, which had been purchased with some of the bribe money.
In January, Lauricella pleaded guilty to two felony charges – receiving bribes and making false entries in the bank’s books and records. The fraudulent short sales that Lauricella approved in return for the bribes resulted in at least $5.7 million in losses to the bank. The fraudulent short sales also clouded the title on the properties, which in turn resulted in expensive litigation for innocent parties, including individuals who purchased the homes later.
Lauricella worked in the Short Sale Department of Bank of America’s Simi Valley office in 2010 and 2011. He was responsible for negotiating short sale transactions, in which a lender allows property securing a mortgage or deed of trust to be sold for less than the existing loan balance, usually because the borrower can no longer make the payments due on the loan or because the fair market value of the property has dropped below the balance due. By approving the short sale, the lender agrees to release the lien on the property securing the mortgage even though the lender will receive less than the full amount owed.
In return for bribes – which were paid by various individuals who purchased the properties so they could be “flipped” – Lauricella used his position to “approve” short sales that he was not authorized to approve and that were for sales prices far below the fair market value of the subject properties. Lauricella then made false entries in Bank of America’s computer system to make it appear that Bank of America had approved the short sales for the below-market prices. When he pleaded guilty, Lauricella admitted approving fraudulent short sales for at least nine properties.
The case against Lauricella is the result of an investigation by the Federal Bureau of Investigation.
Release No. 14-090
Federal Jury Convicts Tax PreparersRead the Press Release
Action E-File Services Had Several Locations in North Texas
DALLAS — Following a nearly two-week-long trial, two local tax preparers were convicted this morning by a federal jury in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas
Carolyn Joy Clark, the owner of Action E-File service, a tax preparation business with three locations in Irving and Grand Prairie, Texas, was convicted on one count of assisting in the preparation of a false tax return. Mickey Joe Perez, a manager and tax preparer, was convicted on seven counts of the same. Eight former employees have pleaded guilty and are awaiting sentencing: Frances Rodriguez Pineda, Maritza Munoz Villanueva, Clara Elizabeth Carcamo, Hugo Molino, Ivette Ramirez, Jose Paleo, Leslie Cisnero, and Veronica Torres.
The government presented evidence that during the years 2008 through 2010, Action E-File Services electronically filed 54,760 income tax returns for customers. According to testimony from six of the former employees who pleaded guilty, approximately 75 to 90 percent of the returns they prepared contained false deductions or credits.
Further evidence at trial revealed that during this same period, Clark, 72, received $5.5 million in fees from the bank that processed Refund Anticipation Loans for her many customers.
Each count of conviction for Clark and Perez carries a maximum statutory sentence of three years in federal prison and a $250,000 fine. Sentencing is set for November 7, 2014.
Internal Revenue Service Criminal Investigation investigated. Assistant U.S. Attorneys Christopher Stokes and J. Nicholas Bunch prosecuted.
Edmond Man Charged with Traveling to Kenya to Engage in Illicit Sexual Conduct with Underage ChildrenRead the Press Release
Oklahoma City, Oklahoma – Late last Friday, a criminal complaint was unsealed charging MATTHEW LANE DURHAM, 19, from Edmond, Oklahoma, with traveling to Kenya to engage in illicit sexual conduct with underage children, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, Durham was a volunteer at the Upendo Children’s Home, located in Nairobi, Kenya, that was founded by an American citizen who is a resident of Edmond, Oklahoma. Upendo specializes in assisting neglected Kenyan children by providing them with food, housing, clothes, school and religion. The school is funded through sponsorships and donations. It is alleged that Durham volunteered with Upendo in June of 2012, June of 2013, December of 2013, and from April 30 to June 17, 2014. It is alleged that on the latest trip to Kenya, Durham stayed at the children’s home in an “overflow bunk” rather than at an offsite facility with a sponsor family where he stayed on prior visits. The complaint alleges that during the period from April to June of 2014, Durham engaged in sexual acts with multiple children, male and female, ranging in ages from four to ten. Reference is made to the criminal complaint for further information.
Durham was arrested on July 17, 2014, and appeared before a United States Magistrate Judge in Oklahoma City late last Friday afternoon. He is held without bond and a preliminary hearing is scheduled for August 1, 2014.
If convicted, Durham faces up to life in prison. The public is reminded that Durham is presumed innocent unless and until proven guilty.
This case is the result of an investigation by the Federal Bureau of Investigation, the United States Embassy in Kenya, and the United States Department of State Diplomatic Security Criminal Investigative Office. The case is being prosecuted by Assistant U.S. Attorney Robert Don Gifford, II.
Dupree Man Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a federal contract officer.
Cleveland Buckman, age 37, was indicted on July 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 8 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.
Buckman is alleged to have forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a Cheyenne River Sioux Tribe law enforcement officer in June 2014 in Dupree. The incident resulted in physical contact with and bodily injury to the law enforcement officer.
The charge is merely an accusation and Buckman is presumed innocent until and unless proven guilty.The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Buckman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dupree Man Charged with Aggravated Sexual Abuse of A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Christian Whiteman, age 20, was indicted on July 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is at least 30 years up to life in custody and/or a $250,000 fine, a minimum of 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that between October 1, 2012, and May 29, 2013, Whiteman engaged in, or attempted to engage in, a sexual act with a child under the age of 12.
The charge is merely an accusation and Whiteman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Whiteman was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Drug Transporter Arrested in Kern County Pleads GuiltyRead the Press Release
FRESNO, Calif. —Enrique Reynosa, 37, pleaded guilty today to possessing with intent to distribute methamphetamine and cocaine, according to United States Attorney Benjamin B. Wagner.
According to court documents, Reynosa was stopped on Highway 99, south of State Route 119, for a traffic violation. Six pounds of methamphetamine, eight pounds of cocaine, and $1,510 were found inside the car after Reynosa provided consent to search the vehicle. As part of the guilty plea, Reynosa agreed to forfeit the 2008 Chevrolet Silverado 150 Crew Cab he was driving and $1,510 in cash seized during the vehicle stop.
Reynosa is scheduled for sentencing on September 29, 2014, before Senior U.S. District Judge Anthony W. Ishii. Reynosa faces 10 years to life in prison and a $10 million 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.
This case is the product of an investigation by the U.S. Drug Enforcement Administration and the California Highway Patrol. Assistant United States Attorney Karen A. Escobar is prosecuting the case.