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4 September 2014
Winter Haven Man Pleads Guilty to Attempted Sexual EnticementRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that Edward Alan Vadney (23, Winter Haven) pleaded guilty today to attempted sexual enticement of a minor. Vadney faces a mandatory minimum of 10 years, up to a maximum penalty of life in federal prison. He also faces a mandatory minimum term of 5 years, up to a life term of supervision, and registration as a sex offender under the Sex Offender Registration and Notification Act. A sentencing hearing is scheduled for November 20, 2014.
According to court documents, on May 15, 2014, a special agent with the Federal Bureau of Investigation (FBI), working in an undercover capacity, discovered an advertisement on the Internet seeking young girls’ underwear. Using his undercover e-mail account, the agent responded to the ad and began corresponding with the man later identified as Vadney. Via e-mail, the agent told Vadney that he had six-year-old and ten-year-old daughters. Vadney then expressed his interest in meeting and having sex with the children. Vadney and the FBI agent made arrangements to meet the following morning, in a restaurant parking lot in Lake Mary, Florida.
On the following morning, after speaking to a female undercover law enforcement officer posing as the fictitious ten-year-old “daughter” and confirming the meeting, Vadney traveled from Winter Haven, Florida to Lake Mary. When Vadney arrived at the predetermined meeting spot, he was taken into custody. During an interview with the FBI, Vadney said that he had traveled to Lake Mary to meet the “father” with whom he had been communicating since the previous day. Vadney admitted that his purpose in traveling to Lake Mary was to have sex with the man’s six-year-old and ten-year-old “daughters.”
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
- Webb County Justice of the Peace Pleads Guilty to Extortion
Visalia Man Indicted for Sexual Exploitation of A MinorRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today charging Steven Christopher Montes, 25, of Visalia, with three counts of sexual exploitation of minors, United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office, and the Kings County District Attorney’s Office. Assistant United States Attorney Brian W. Enos is prosecuting the case.
According to court documents, from November 2013 through August 2014 and while serving as a band teacher at Riverdale High School, Montes knowingly and surreptitiously took sexually explicit videos of minors on campus.
If convicted, Montes faces a possible sentence of 15 to 30 years in prison for each count charged. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Union County, N.J., Pastor Admits Role in $15 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A pastor of the now-defunct ReBirth International Church in Elizabeth, New Jersey, admitted today to defrauding financial institutions as part of a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
Sean A. Souels, 44, of Linden, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to a second superseding indictment charging him with one count of conspiracy to commit wire fraud.
Souels was among 11 defendants charged in July 2012 with conspiracy to commit wire fraud and conspiracy to commit money laundering. Two additional defendants, Nicholas Tarsia, 65, of Totowa, N.J., and Mashon Onque, 43, of East Orange, N.J., were charged in November 2013 with conspiracy to commit wire fraud. Tarsia was also charged with one count of conspiracy to commit money laundering.
According to the documents filed in this case and statements made in court:
Souel’s conspirators, including Darryl Henry, 48, of Somerset, New Jersey, and Jerry Smith, 48, of Rahway, New Jersey – who both pleaded guilty before Judge Simandle; Henry in March of 2009 and Smith in December, 2011 – located oceanfront condominiums overbuilt by financially distressed developers and negotiated a buyout price with the sellers. They then caused the sales prices for the properties – located in Wildwood Crest and North Wildwood, New Jersey, other locations in New Jersey and in Naples, Fla. – to be much higher than the buyout price to ensure large proceeds. Other defendants helped conceal the true sales prices of certain properties through inflated sales contracts and finder’s fee agreements.
In 2007, Souels agreed with Henry and Smith to recruit a church member to purchase a Wildwood Crest property at an inflated rate. In order for the “straw purchaser” to appear more creditworthy, Souels submitted documents fraudulently claiming that the church member was employed as the president of operations at ReBirth International Church. Once the loan was approved and the mortgage lender sent the loan proceeds in connection with real estate closing, Souels received $30,000 from his conspirators.
The wire fraud conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. Souels is scheduled to be sentenced on Jan. 20, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Jose Ongay Esq., Haddon Heights, N.J.
Ricks, Timothy, et al., Superseding Indictment
Two Men Sentenced for Using Paper as MoneyRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Gooding Vincent, 38, of Syracuse, NY, and Eugene Cooper, 38, of Buffalo, NY, who were convicted of using paper as money, were sentenced to two years probation by Magistrate Judge H. Kenneth Schroeder, Jr.
The sentencings are the result of an investigation by the United Stated Secret Service, under the direction of Special Agent in Charge Tracy Gast and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Vincent and Cooper participated in a scam commonly referred to as a “Black Money Scam.” Such a scam usually involves an individual attempting to convince an unsuspecting victim to provide the scammer with money to purchase chemicals to turn black-dyed paper into authentic U.S. currency. The individual concocts a story that money, which originated outside the United States, was treated chemically and dyed black to sneak it past immigration officials to avoid tax liability. The scammer attempts to convince the victim that money is needed to purchase chemicals to restore the money and that the scammer will share with the victim some of the funds once they are restored.
On July 8, 2013, the defendants met with a confidential informant (“CI”) working with the Government in order to convince the CI to purchase “dirty” money from them.
Vincent and Cooper attempted to use a slightly different version of the black money scam. According to the defendants, genuine United States currency had been obtained from the Central Intelligence Agency (CIA) to fight wars in Africa. The United States currency had been dyed either black or white to avoid being detected by opposition leaders in Africa and could be restored by simply washing the bills in chemicals provided by the defendant.
The CI agreed to purchase, and did purchase from the defendants, what the CI had been told was $10,500 in United States currency that had been dyed either black or white, in return for $10,000. In actuality, the defendants sold valueless black and white banknote sized paper to the CI for $10,000.
The defendants later admitted to agents working for the United States Secret Service and the Department of Homeland Security that they had sold black and white banknote sized paper having no value to the CI for $10,000. Vincent and Cooper admitted to the agents that the CI was led to believe that the CI was purchasing genuine United States currency.Two Kanawha County Men Sentenced to Prison on Federal Gun ChargesRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that David Burgess, 27, and Jesse Burgess, 26, both of Charleston, West Virginia, were each sentenced to 21 months in federal prison. Both men were sentenced on federal gun charges in connection with the theft of firearms from two local businesses. United States District Judge John T. Copenhaver, Jr., imposed the sentences.
David Burgess previously admitted that he illegally possessed a 9 mm semi-automatic pistol on September 17, 2012, the day he stole the firearm from Pawn for Cash, a federally licensed firearms dealer in Charleston. David Burgess had previously been convicted of the felony offense of credit card forgery in the Circuit Court of Kanawha County, West Virginia, and his rights to possess a firearm had not been restored. Jesse Burgess previously admitted that he aided and abetted his brother in stealing the pistol from Pawn for Cash. Jesse Burgess was also prohibited from possessing a firearm because he had previously been convicted of breaking and entering in the Circuit Court of Kanawha County, West Virginia, and his rights to possess a firearm had not been restored.
The investigation was conducted by the Charleston Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Haley Bunn handled the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Two Chinese Citizens Plead Guilty to Trafficking Counterfeit Cell Phone CasesRead the Press Release
Boston – Two Chinese citizens, living in Massachusetts, pleaded guilty today to importing and reselling counterfeit cases for cell phones.
Zexiong Chen, 28, and Haotian Chen, 26, who are unrelated, pleaded guilty before U.S. District Court Judge F. Dennis Saylor IV to trafficking in counterfeit goods. Sentencing is scheduled for Dec. 11, 2014.
In February 2013, the defendants incorporated Max Wireless Group, Inc. as a vehicle for importing and reselling cell phone cases, many of which were counterfeit. Through Max Wireless, Zexiong Chen and Haotian Chen imported counterfeit cell phone cases from China, sold a small percentage of them through their Wakefield store, and sold the vast majority of them to individuals and companies who resold them at retail locations. Many of these retail locations were kiosks in shopping malls, some of which were in Massachusetts.
On 12 occasions from November 2012 through August 2013, U.S. Customs and Border Patrol officials inspected shipments the defendants imported from China to the United States and determined that these shipments contained counterfeit items. These 12 seizures included more than 10,000 counterfeit cell phone cases, bearing marks of manufacturers, including OtterBox, Speck, Kate Spade, Hello Kitty, Ferrari and LifeProof. On Sept. 4, 20013, federal agents searched the Max Wireless store and found more than 2,500 counterfeit cell phone cases and accessories.
The total retail price for the authentic versions of all of the cell phone cases seized during the course of this investigation was more than $350,000, but the defendants paid far less for the cases and typically resold the cases for far less than suggested retail price.
In February 2014, Zexiong Chen was arrested at JFK International Airport as he prepared to board a plane to China. He has been in custody since that time. Haotian Chen, who was also arrested in February 2014, was released by the Court on conditions, and remains on release.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $2 million. 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 and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Adam Bookbinder, Chief of Ortiz’s Cyber Crime Unit.
Tulsa Woman Pleads Guilty to Theft of Government FundsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JANET CAROLYN JONES, age 65, of Tulsa, Oklahoma, pled guilty to an Information charging her with Theft Of Government Funds, in violation of Title 18, United States Code, Section 641.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General.
The Information alleged that from in or about September 2000 through September 2013, in the Eastern District of Oklahoma, the Defendant did willfully and knowingly embezzle, steal and convert to her own use, money and things of value from the Social Security Administration, an agency of the United States, which had been paid to Ora Dell Dixon, a/k/a, Ora Dell Trento, as retirement benefits, to which the defendant knew she was not entitled and having a value in excess of $1,000.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion.
The statutory range of punishment is 10 years imprisonment and/or a fine of up to $250,000.
Assistant United States Attorney Chris Wilson represented the United States.
Three Hedge Fund Manangers Sentenced in Connection with $40 Million "Black Diamond" Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – On Wednesday, September 3, 2014, U.S. District Judge Robert J. Conrad, Jr. sentenced three hedge fund managers in connection with a $40 million investment fraud conspiracy, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Jeffrey M. Toft, 51, of Sioux Fall, S.D., was sentenced to 66 months in prison followed by two years of supervised release. Chad A. Sloat, 36, of Kansas City, Mo. was sentenced to 70 months in prison, followed by two years of supervised release, and Michael J. Murphy, 54, of Deep Haven, Minn., was sentenced to 48 months in prison, and two years of supervised release.
Judge Conrad also ordered the defendants to pay restitution to victims as follows: Toft in the amount of $2,172,666; Sloat in the amount of $3,747,130 and Murphy in the amount of $2,552,824.30. Sloat was also ordered to pay $93,727 in restitution to the Internal Revenue Service. A fourth codefendant, Jonathan D. Davey, 50, of Newark, N.J. is currently awaiting sentencing.
At sentencing, Judge Conrad noted that the callous greed displayed by the defendants caused devastating financial ruin to hundreds of elderly and vulnerable victims. Judge Conrad also stressed that the lengthy sentences were appropriate given the predatory nature of the scheme.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service - Criminal Investigation Division (IRS-CI), join U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and court proceedings, the defendants operated “hedge funds” as part of a $40 million Ponzi scheme operating under the name Black Diamond Capital Solutions (Black Diamond). Court documents show that from 2007 to 2010, the defendants induced their investor victims to turn over their money by claiming, among other things, that they had done due diligence on Black Diamond and were operating legitimate hedge funds with significant safeguards, when, in reality, those claims were false. Court records also show that as Black Diamond began collapsing, the defendants and others created a new Ponzi scheme and used a series of separate bank accounts administered by Davey to further the scheme. Specifically, the defendants deposited new victim money into these bank accounts and used the money to make lulling payments to other victims and to fund the defendants’ lifestyles.
Toft pleaded guilty in November 2012 to securities fraud conspiracy, wire fraud conspiracy and money laundering conspiracy. Sloat pleaded guilty in October 2012 to securities fraud conspiracy and Murphy pleaded guilty to the same charge in January 2013. Davey was convicted at trial of securities fraud conspiracy, wire fraud conspiracy, money laundering conspiracy and tax evasion. He will be sentenced by the court at a later date.
Toft remains free on bond and will be transferred to the custody of the Federal Bureau of Prisons upon designation of federal facility. Murphy and Sloat have been in federal custody since their bonds were revoked due to bond violations in March 2012 and August 2013, respectively. All federal sentences are served without the possibility of parole.
The case is prosecuted by Assistant United States Attorneys Kurt W. Meyers and Mark T. Odulio of the Western District of North Carolina. The investigation was handled by the FBI and the IRS.
Three California Residents Plead Guilty to Sex Trafficking Related OffensesRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that Vincent Hudson, a/k/a “Goldie,” (44, Stockton, CA), Patricia Poulson, a/k/a “Moët Diamonds,” (22, Stockton, CA), and Jessica McCrary, a/k/a “Amber Snow” (20, Stockton, CA) pleaded guilty today. Hudson pleaded guilty to one count of transporting a minor to engage in prostitution and one count of the commission of a felony offense involving a minor when required to register as a sex offender. Hudson was previously convicted of a felony sex offense that requires him to register as a sex offender in California. Poulson and McCrary each pleaded guilty to interstate travel with intent to promote an unlawful activity, namely prostitution. Hudson faces a mandatory minimum of 20 years, up to life in federal prison. Poulson and McCrary each face a maximum penalty of 5 years in federal prison. The sentencing hearing is scheduled for November 20, 2014, before United States District Judge Paul Byron.
According to their plea agreements, on November 8, 2013, Minor A, a 16 year-old female, met Hudson at a hotel in Orlando. McCrary and Poulson were traveling with Hudson. Minor A initially told Hudson that she was a runaway with an active arrest warrant. Hudson promised the minor a “new identity” if she would join their “team” as a prostitute. Minor A said that Hudson, Poulson, and McCrary told her that she would be working as a prostitute and having sex for money in both Louisiana and California.
Minor A left Orlando with Hudson, Poulson, and McCrary and they drove to Louisiana. While in Louisiana, Minor A walked the streets of Lafayette and New Orleans as a prostitute, providing commercial sex for money. All of the money that she earned was given to Hudson.
While they were in Lafayette, Hudson stole an identification card at a tattoo shop belonging to “D.G.” This became Minor A’s new identity. Minor A worked in Louisiana for three weeks and then took a bus from Lafayette, Louisiana to Stockton, California. Minor A rode the bus by herself using the name “D.G.” Once in Stockton, Minor A worked as a prostitute nearly every day, from noon to 11:00 p.m., until she was arrested for prostitution on December 18, 2013.
This case was investigated by the Federal Bureau of Investigation and the Orlando Metropolitan Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David Haas.
Three Alabama Men Plead Guilty to Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Three residents of Montgomery, Alabama, each pleaded guilty during the past week to one count of conspiracy to defraud the government and one count of aggravated identity theft, announced Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
Cruz Castillo Burnett, Jacorey Giddens and Rodrickus Howard were indicted on May 1, 2014. According to court documents, the defendants conspired to acquire the means of identification of individuals, including names, Social Security numbers and dates of birth, of other persons without their knowledge or consent. From March 2011 to April 2013, the defendants used these stolen identities to file more than 500 false tax returns, and each return claimed fraudulent refunds from the Internal Revenue Service (IRS). The defendants received the fraudulent refunds in various forms, including U.S. Treasury checks, direct deposits to bank accounts and direct deposits onto prepaid debit cards in the names of identity theft victims.
The three defendants each face a statutory maximum sentence of 10 years in prison for the conspiracy count, followed by up to three years of supervised release. The defendants will each be required to serve a statutory mandatory sentence of two years in prison for the aggravated identity theft count.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Trial Attorneys Greg Bailey and Michael Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Three Alabama Men Plead Guilty to Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Three residents of Montgomery, Alabama, each pleaded guilty during the past week to one count of conspiracy to defraud the government and one count of aggravated identity theft, announced Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
Cruz Castillo Burnett, Jacorey Giddens and Rodrickus Howard were indicted on May 1, 2014. According to court documents, the defendants conspired to acquire the means of identification of individuals, including names, Social Security numbers and dates of birth, of other persons without their knowledge or consent. From March 2011 to April 2013, the defendants used these stolen identities to file more than 500 false tax returns, and each return claimed fraudulent refunds from the Internal Revenue Service (IRS). The defendants received the fraudulent refunds in various forms, including U.S. Treasury checks, direct deposits to bank accounts and direct deposits onto prepaid debit cards in the names of identity theft victims.
The three defendants each face a statutory maximum sentence of 10 years in prison for the conspiracy count, followed by up to three years of supervised release. The defendants will each be required to serve a statutory mandatory sentence of two years in prison for the aggravated identity theft count.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Trial Attorneys Greg Bailey and Michael Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Tehachapi Man Indicted on Child Pornography ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Thomas Bettis, 53, of Tehachapi, charging him with two counts of receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between October 2011 and March 2013, Bettis downloaded and distributed graphic images of child pornography. In order to trade and obtain more images of child pornography, Bettis communicated with at least two individuals—one of whom was an undercover law enforcement officer.
This case is the product of two separate investigations by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Federal Bureau of Investigation. Assistant United States Attorney David L. Gappa and Special Assistant United States Attorney Brian A. Fogerty are prosecuting the case.
Bettis was arrested on August 27, 2014, and he has been ordered detained as a danger to the community. His next court date is September 10, 2014, at 1:30 p.m. before a magistrate judge.
For each count, Bettis faces a prison sentence of between five and 20 years, a potential $250,000 fine, and a lifetime term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Taylor County Man Pleads Guilty in Video Voyeurism CaseRead the Press Release
ABILENE, Texas — A Trent, Texas, man appeared in federal court in Abilene, Texas, today and pleaded guilty, before U.S. Magistrate Judge E. Scott Frost, to a federal indictment charging one count of video voyeurism, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jeremy Wayne Griffith, 28, of Trent, Texas, was arrested in November 2013 on the federal offense and was released on bond. He faces a statutory penalty of one year in federal prison and a $100,000 fine. A sentencing date was not set.
According to documents filed in the case, from November 2009 until November 2010, Griffith was employed by KBR, Inc., as an HVAC operator assigned to the U.S. Army installation C3 Camp Warhorse in Iraq. Griffith was responsible for the installation and repairing of heating and air conditioning units at Camp Warhorse.
The FBI received information that Griffith had installed a hidden camera in the female barracks at Camp Warhorse and had videos of nude female soldiers and/or contractors stationed at the military installation. On June 13, 2013, the FBI executed a federal search warrant at Griffith’s residence in Trent, and agents located and seized an external hard drive. A forensic review of that hard drive revealed videos of captured hidden camera footage of multiple female soldiers and/or contractors undressing in the female locker room at Camp Warhorse.
The female locker room was a place where female soldiers and/or contractors had a reasonable expectation of privacy.
The case is being prosecuted by Assistant U.S. Attorney Justin Cunningham of the U.S. Attorney’s Office in Lubbock, Texas.
Suspended Physician Pleads Guilty to Illegally Dispensing Oxycodone and Falsely Billing Medicare in Undercover ProbeRead the Press Release
CHICAGO — A suburban physician whose medical license was suspended after he was arrested earlier this year pleaded guilty today to health care fraud and illegally prescribing controlled substance medications. The defendant, SATHISH NARAYANAPPA BABU, who owned Anik Life Sciences Medical Corp., admitted that he illegally prescribed oxycodone and other controlled substances, and fraudulently billed Medicare approximately $500,000, and fraudulently collected approximately $216,000, for services he did not provide.
Babu, 47, of Bolingbrook, operated Anik Life Sciences, a home-visiting physician’s office, in Darien and, previously, in Arlington Heights. He was arrested in February following an investigation by the Drug Enforcement Administration, the U.S. Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation.
As part of his plea agreement, Babu agreed to surrender his DEA registration. He faces a maximum sentence of 10 years in prison on one count of health care fraud and four years in prison on one count of illegally prescribing a controlled substance, and a $250,000 maximum fine on each count. The government anticipates an advisory United States Sentencing Guidelines range of 57 to 71 months in prison, according to Babu’s plea agreement.
Babu remains free on bond, which prohibits him from writing any prescriptions or submitting any claims to Medicare, while awaiting sentencing on Jan. 21, 2015, by U.S. District Judge John J. Tharp, Jr.
Babu also agreed to forfeit approximately $126,000 that was seized when he was arrested, as well as three automobiles ― a 2013 BMW, a 2001 BMW, and a 2010 Lexus.
In pleading guilty, Babu admitted that between November 2012 and December 2013, he issued multiple prescriptions for controlled substances to a purported patient who was actually an undercover agent, despite never having seen or examined the patient. The prescriptions totaled approximately 300 pills containing 80mg strength oxycodone, 180 pills containing 5-325mg strength hydrocodone, and 120 pills containing 1 mg strength of alprazolam. Babu also permitted unlicensed personnel associated with Anik Life Sciences to issue prescriptions to the patient. During the same period, Babu submitted false claims to Medicare for services purportedly provided to the patient that were not rendered by Babu or another licensed medical professional.
According to court documents, the undercover agent posed as a healthy individual purportedly covered by Medicare and seeking physician services to obtain prescription medication, including oxycodone. The agent claimed to have shoulder pain from a previous injury and to be on disability. On approximately 10 occasions, representatives from Anik Life Sciences, none of whom were licensed as physicians, nurses, or other medical professionals, visited the undercover agent in his purported apartment.
Babu caused unlicensed personnel from Anik Life Sciences to provide purported medical care ― including prescriptions issued under Babu’s name and DEA registration number for controlled substances ― to the undercover agent and then billed Medicare for that purported care. Medicare and its contractor paid about $4,000 to cover the costs of the prescriptions that Babu issued to the undercover agent.
In addition to the undercover agent, Babu had other patients, whom he certified and re-certified as eligible for home health services under Medicare, and submitted claims for care he purportedly provided, including home visits and diagnostic testing and review, without regard to whether the claimed services were medically necessary. Babu hired three foreign medical school graduates who were not licensed physicians in the United States to conduct home visits and advertised these individuals as “MDs” or doctors. Babu submitted Medicare claims indicating that he personally conducted the patient visits and provided comprehensive medical evaluations that he did not actually perform.
Babu also maintained an office staff that he directed to order certain diagnostic tests for every patient, including ultrasound and autonomic nervous system testing, without regard to medical necessity. He further prescribed controlled substances to patients who he had never seen or examined and permitted his unlicensed staff to fill out prescriptions and order refills for patients.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The officials commended the assistance of United Healthcare in the investigation. The government is being represented by Assistant U.S. Attorney Sarah Streicker.
Plea Agreement
St. Mary’s County Man Charged with Involuntary Manslaughter in Death of His Infant SonRead the Press Release
Greenbelt, Maryland - A criminal complaint was filed today charging John MacDonald Junek, age 40, of Leonardtown, Maryland, with involuntary manslaughter in connection with the death of his infant son. An initial appearance is scheduled for 2:00 p.m. today before U.S. Magistrate Judge Charles B. Day, in U.S. District Court in Greenbelt, Maryland.The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service, Washington Field Office.
The criminal complaint alleges that at 3:25 p.m. on September 3, 2014, Junek’s infant son was found unresponsive, locked inside Junek’s vehicle which was parked at the Naval Air Station (NAS) Patuxent River, where Junek worked. According to the criminal complaint, Junek dropped his four year old son at preschool that morning and was then supposed to drop his infant son at the Child Development Center on NAS Patuxent River. Junek explained that he entered the base and drove directly to his office, leaving his son in his rear-facing car seat in his locked vehicle at approximately 8:50 a.m.
According to the criminal complaint, Junek’s wife called him at 3:20 p.m. to see if he had their son’s car seat with him. Junek could not recall whether he had the car seat and realized that he may not have dropped the baby off at the CDC. Junek went to his vehicle and discovered the infant in his car seat unconscious. Junek called emergency responders and attempted to perform CPR on the child until police and EMS arrived and took over.
According to the criminal complaint, Junek had driven his vehicle to a meeting at approximately 1:00 p.m. He remained at the meeting until 2:00 p.m. and drove back to his office. Junek advised law enforcement that he had been in a hurry to get to the meeting and had not noticed his son was still strapped to his car seat in rear of the vehicle. The temperature reached 85 degrees on September 3, 2014.
Junek faces a maximum sentence of eight years in prison for involuntary manslaughter. He is currently detained.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the NCIS for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kristi O’Malley and Michael Packard, who are prosecuting the case.
St Thomas Man Arrested and Charged with Possession with Intent to Distribute Drugs Within 1,000 Feet of A SchoolRead the Press Release
St. Thomas, USVI- Nyah Henry, 25, of St. Thomas was arrested Wednesday for possession of cocaine and marijuana with intent to distribute within 1,000 feet of the Ivanna Eudora Kean High School, announced United States Attorney Ronald W. Sharpe. Henry appeared today in United States District Court before U.S. Magistrate Judge Ruth Miller and was released on conditions, including a $25,000 unsecured bond.
Henry was arrested pursuant to a warrant issued after he was indicted by a federal grand jury in a two-count indictment charging him with (1) possession with intent to distribute marijuana within 1,000 feet of a school on January 18, 2014, and (2) possession with intent to distribute cocaine within 1,000 feet of a school on January 18, 2014.
Under federal law, a person who distributes controlled substances within 1,000 feet of a school faces a mandatory minimum sentence of one year in federal prison. Henry also faces a maximum sentence of up to 40 years in prison. Arraignment is scheduled for Wednesday, September 10, 2014.
The public is reminded that an indictment is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
The case is being investigated by the U.S. Drug Enforcement Administration and the Virgin Islands Police Department. It is being prosecuted by Assistant U.S. Attorney Ishmael Meyers, Jr.
Sisters, Postal Employees Sentenced in Seperate CasesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that in separate and unrelated cases, Amanda Elliott, 35, of Ellington, N.Y., and Tamara Elliott, 30, of Falconer, N.Y., who were convicted of misappropriation of postal service funds by postal service employee, were sentenced by Chief U.S. District Judge William M. Skretny.
Amanda Elliott was sentenced to two years probation and ordered to pay $5,579.48 in restitution. Tamara Elliott was sentenced to two years probation to include three months home confinement and ordered to pay restitution totaling $11,326.86.
The sentencings are the culmination of an investigation by Special Agents with the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Amanda Elliott was the Postmaster Relief at the post office located in Lily Dale, N.Y. between December 2012 and September 5, 2013. During that time, the defendant accepted cash payments from customers for the purchase of postage stamps. Instead of depositing the cash in the cash register, Elliott kept the cash for personal use.
In the second case, Tamara Elliott was the Postmaster Relief at the post office located in Ellington, N.Y. Between December 2012 and September 5, 2013, Tamara Elliott accepted cash payments from customers for the purchase of postage stamps. Instead of depositing the cash in the cash register, the defendant kept the cash for her own purposes. Tamara Elliott also rented post office boxes and sold money orders to customers and kept the cash payments.Second Serra Nissan Sales Manager Charged in Loan Fraud ConspiracyRead the Press Release
BIRMINGHAM -- A second sales manager at Serra Nissan faces federal charges in connection with a conspiracy at the Birmingham car dealership to fraudulently boost loan approvals and car sales, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
A federal grand jury last week indicted GERALD R. SHEPARD, 56, of Pinson, on conspiracy and bank fraud charges. A federal judge lifted the seal on the indictment this week after the government withdrew a warrant for Shepard's arrest.
The five-count indictment charges Shepard with conspiring with others at the dealership, between August 2010 and October 2013, to defraud financial institutions, Nissan North America and Serra Nissan customers by fraudulently increasing vehicle sales in order to boost personal profits. The indictment also charges Shepard with four bank fraud counts for fraudulent loan information submitted to financial institutions in September and October of 2012.
Shepard's indictment follows federal charges earlier this year against another sales manager at Serra Nissan, Abdul Islam Mughal. Mughal, 48, of Trussville, pleaded guilty in July to conspiring with others, including Serra Nissan salesmen, general managers, sales managers and finance managers, to sell more cars by falsifying loan documents in order to defraud customers, Nissan North America and financial institutions. Mughal also pleaded guilty to one count of bank fraud for submitting falsified loan documents to financial institutions between January 2012 and October 2013. Mughal is scheduled for sentencing Nov. 5.
According to the indictment against Shepard, he and other members of the conspiracy participated in various means to carry out their fraud and obtain auto loans that, otherwise, would not have been approved. Those means included the following:
- Creating or altering documents to submit to financial institutions to show inflated income for prospective buyers.
- Directing finance managers and salesmen to submit fraudulent utility bills and bank statements to financial institutions to misrepresent proof of a customer's residency.
- Listing accessories not actually included on a vehicle so a financial institution would increase its loan amount. Shepard and others had a financial incentive to increase a loan amount in order to increase commissions paid to certain employees.
- Presenting straw buyers, who could qualify for a loan, to financial institutions when the actual buyer could not qualify.
Shepard and others also defrauded customers and financial institutions by quoting a customer an inflated monthly vehicle loan payment so that a finance manager could add a warranty and gap insurance without the customer realizing it, according to the indictment.
The maximum penalty for the conspiracy count is five years in prison and a $250,000 fine. The maximum penalty for bank fraud is 30 years in prison and a $1 million fine.
The FBI and the IRS investigated the case, which Assistant U.S. Attorney Amanda Schlager Wick is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Second Defendant Pleads Guilty in Identity Theft, $1.8 Million Dollar Fraudulent Tax Return SchemeRead the Press Release
PROVIDENCE, R.I. – Richard Lara, 22, of Providence, R.I., pleaded guilty in U.S. District Court in Providence yesterday to participating in a scheme in which personal identifying information of more than 1,200 individuals was stolen, many of which were used to file fraudulent tax returns with the IRS totaling more than $1.8 million dollars. Julian Balbi, 22, of Providence, a co-defendant in this matter, pleaded guilty on June 5, 2014, to participating in the scheme with Lara.
Lara and Balbi pleaded guilty to four counts of aggravated identity theft and one count each of conspiracy and theft of government property. The guilty pleas are announced by United States Attorney Peter F. Neronha; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
According to court records and information presented to the court, Lara and Balbi were arrested by Rhode Island State Police on January 2, 2012, on an unrelated matter during a routine traffic stop. During a court authorized search of the vehicle which was owned by Julian Balbi, State Police discovered 87 U.S. Treasury checks made out to third parties totaling $596,646.46. The investigation revealed that the checks were generated by the submission of fraudulent tax returns. Also seized were several ledgers and notebooks containing personal identifying information, including Social Security numbers and dates of birth, of hundreds of individuals; ledgers containing employer information such as Employee Identification Numbers and addresses; and a USB flash drive containing numerous spreadsheets detailing taxpayer information and fraudulent tax returns that had been filed with the IRS.
According to information presented to the court, Rhode Island State Police executed a court authorized search of Balbi’s Providence residence where they seized numerous computers and USB flash drives. A forensic examination of the computers and flash drives revealed numerous spreadsheets containing ledgers identical to those on the flash drives seized from the vehicle. A court authorized search of Lara’s residence resulted in the seizure of another ledger which allegedly contained personal identity information which matched information contained on the flash drive seized from Balbi’s vehicle.
According to information presented to the court, IRS and U.S. Secret Service agents interviewed 17 individuals listed as payees on the treasury checks seized from Balbi’s vehicle. All 17 stated they did not file the tax return in question and that they did not know Balbi or Lara. The IRS conducted an analysis of all of the information associated with the 1,258 individuals listed on the various ledgers and computers seized from Balbi and Lara. The investigation revealed that between April 2011 and January 2012, 823 fraudulent tax returns seeking refunds totaling $1,854,438.46 were filed with the IRS.
Julian Balbi is scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on September 18, 2014. Richard Lara is scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on December 4, 2014.
Conspiracy to commit a crime against the U.S. Government is punishable by statutory penalties of up to 5 years in federal prison, a fine of up to $250,000 and a term of supervised release of up to 3 years. Theft of government property (treasury checks) is punishable by statutory penalties of up to 10 years in federal prison and a fine of up to $250,000. Aggravated identity theft is punishable by statutory mandatory sentence of 2 years imprisonment, to be served consecutive to the sentence imposed for theft of government property, and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Seafood Company and Owner Sentenced for False Records Conspiracy, Overharvesting Sea Scallops Off Atlantic CoastRead the Press Release
Company owner sentenced to 30 months in prison
NEWARK, N.J. – The owner of a Maine seafood company was sentenced to 30 months in prison today for his role in concealing 79,666 pounds of Atlantic sea scallops harvested off the coast of New Jersey and Cape Cod, Massachusetts, New Jersey U.S. Attorney Paul J. Fishman announced.
The owner of D.C. Air & Seafood, Christopher Byers, 42, of Winter Harbor, Maine, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with conspiring with his company and six fishing boat operators to prepare false reports to conceal the overharvesting. Judge Walls imposed the sentence today in Newark federal court. The six boat operators previously pleaded guilty before Judge Walls and await sentencing.
According to documents filed in this case and statements made in court:
D.C. Air & Seafood, a seafood wholesaler, purchased Atlantic sea scallops harvested by federally permitted vessels in the Elephant Trunk Access Area – a large sea scallop fishing ground off the mid-Atlantic coast. That area and others managed by the National Oceanic and Atmospheric Administration (NOAA) had been closed to fishing as part of an area rotation management program to rebuild the scallop population, but were open to limited scallop fishing by federally permitted vessels for two-week periods in March 2007, July 2007 and March 2008.
During those periods, individual vessels were restricted to harvesting no more than 400 pounds of scallops per vessel per trip. Vessels operated by the conspiring boat operators failed to report 79,666 pounds of scallops harvested off the coast of New Jersey and Cape Cod for purchase by D.C. Air & Seafood during the permit periods. Some of the scallops were off-loaded from the vessels in Atlantic City, New Jersey, to trucks used by Byers and D.C. Air & Seafood.
Byers admitted during his guilty plea that he, D.C. Air & Seafood and the six boat operators conspired to conceal the overharvesting of scallops by preparing fishing vessel trip reports – required to be submitted to NOAA – which falsely represented the amount of scallops harvested on certain vessel trips was 400 pounds or less.
As part of its plea agreement, D.C. Air & Seafood agreed to pay $520,371 in restitution to the United States – representing the value of the sea scallops – and to be placed on probation for five years. During the probationary period, the company will be subject to the terms of an environmental compliance plan to ensure all purchases and sales of fish comply with federal law. The company agreed not to participate in the scallop industry during that time.
In addition to the prison term, Judge Walls sentenced Byers to three years of supervised release and ordered him to pay restitution in the amount of $520,371.
U.S. Attorney Fishman credited special agents of the National Oceanic and Atmospheric Administration, under the direction of Special Agent in Charge Logan Gregory, with the investigation.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: William J. Hughes Esq., Atlantic City, N.J.Rutland Man Sentenced to over Seven Years Imprisonment for Federal Conviction for Heroin and Crack Cocaine DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Chief Judge Christina Reiss, of the United States District Court, sentenced Terrence Chenault (a.k.a. “Stucky”), 31, of Rutland, Vermont to 87 months imprisonment for conspiring to distribute heroin and crack cocaine in the Rutland area. In addition, Judge Reiss sentenced Chenault to four years supervised release, to be served after he completes his jail sentence. She also recommended to the Bureau of Prisons that Chenault participate in the 500-hour substance abuse program for federal inmates.
Chenault previously pled guilty to conspiring to distribute heroin and cocaine base in the Rutland area in 2013. The Pre-Sentence Report found that Chenault was involved in distributing at least 400 grams of heroin and 56 grams of crack cocaine. According to court records, Chenault’s co-conspirators include Eric Dixon (a.k.a. “Big E”) and Andrew Harris (a.k.a. “Dreads”), both of whom have pled guilty to conspiring to distribute narcotics and are awaiting sentencing. All three defendants lived on Park Avenue in Rutland City.In sentencing Chenault, Judge Reiss relied, in part, on his lengthy criminal record and also found that he “preyed” on drug addicts to do his work for him and that he had missed many “wake up calls” to turn his life around. The Government stated in its sentencing memorandum that “heroin and other drugs are wreaking havoc in Rutland and many other Vermont communities” and “a strong message from the Court needs to be continually sent to narcotic dealers that spreading their poison in the community will result in a lengthy jail sentence.”
The United States is represented by Assistant U.S. Attorney Joseph Perella while the defendant is represented by Richard Goldsborough, Esq. This case was jointly investigated by the Vermont Drug Task Force, the Drug Enforcement Administration, and the Federal Bureau of Investigation.Russellville, Kentucky, Convicted Felon Sentenced to 151 Months in Prison for Distribution of A Controlled Substance and Possession of A FirearmRead the Press Release
– Formerly convicted of facilitation to murder, promoting contraband and trafficking in a controlled substance
BOWLING GREEN, Ky. – A Logan County, Kentucky man formerly convicted of facilitation to murder, promoting contraband, and trafficking in a controlled substance was sentenced yesterday in U.S. District Court by Senior Judge Thomas B. Russell to 151 months in prison, followed by three years of supervised release, for multiple charges of distribution of a controlled substance and possession of a firearm by a convicted felon, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Kelly Dewayne Morris, a/k/a Kelly Crenshaw, age 36, previously admitted in court to being a felon in possession of a Taurus, model 856, .38 Special revolver, and five rounds of .38 Special ammunition, possession of body armor, and three counts of possession and distribution of crack cocaine.
According to the indictment, between August 1, 2013 and October 18, 2013, in Logan County, Kentucky, Morris possessed the firearm and body armor, and distributed crack cocaine to a confidential informant.
Morris was convicted of robbery and facilitation to murder in Todd County, Kentucky, Circuit Court on January 21, 2009. Further, Morris was convicted of promoting contraband in Warren County, Kentucky, Circuit Court on July 5, 2001, and Trafficking in cocaine in Logan Circuit Court on February 15, 1999.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the South Central Kentucky Drug Task Force.
Roff Woman Pleads Guilty to Theft of Government FundsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MARY LOUISE FARRIS, a/k/a Mary Louise Allen, age 42, of Roff, Oklahoma, pled guilty to an Information charging her with Theft Of Government Funds, in violation of Title 18, United States Code, Section 641.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General.
The Information alleged that from on or about February 22, 2012 to on or about December 18, 2012, in the Eastern District of Oklahoma, the Defendant did willfully and knowingly embezzle, steal and convert to her own use, money and things of value from the Social Security Administration, an agency of the United States, which had been paid to Mary Lou Allen, as widow benefits, to which the defendant knew she was not entitled and having a value in excess of $1,000.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion.
The statutory range of punishment is 10 years imprisonment and/or a fine of up to $250,000.
Assistant United States Attorney Chris Wilson represented the United States.
Rockland Man Sentenced to More Than 3 Years for Pharmacy RobberyRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Elbert
Ranquist, 43, of Rockland, Maine, was sentenced today in U.S. District Court by Judge Nancy
Torresen to 43 months in prison and three years of supervised release for pharmacy robbery. Ranquist pleaded guilty to the charge on April 17, 2014.According to court documents, on the evening of August 5, 2013, Ranquist drove to
Jensen’s Pharmacy in Rockland in his wife’s distinctive vehicle. He entered the pharmacy wearing sunglasses, a hooded sweatshirt pulled tight around his face, a small blue backpack and blue surgical gloves. He went to the counter holding a knife in his left hand and demanded oxycodone from the pharmacist. The pharmacist, who recognized the defendant as a regular customer, asked out loud if he was really being robbed by “Elbert Ranquist.” The defendant absconded with 10 5mg oxycodone pills.In pronouncing sentence, Judge Torresen stated that Ranquist had been in a vicious cycle with drugs for years in which he tried to self-medicate and solve personal and family problems but only caused himself more problems.
The case was investigated by the Federal Bureau of Investigation, the Rockland Police
Department, the Maine State Police and the Maine Drug Enforcement Agency.- Remaining Defendants Sent to Prison in Massive Stash House Case in Houston
Provider of Services for Special Needs Preschool Students Sentenced in Manhattan Federal Court to 24 Months in Prison for Defrauding Education Programs of More Than $2 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CHEON PARK was sentenced in Manhattan federal court to 24 months in prison and over $2 million in forfeiture and restitution for defrauding the New York State Education Department (“NYSED”) and the New York City Department of Education (“NYCDOE”) out of millions of dollars in connection with special education services and preschool programs provided to New York City children by a company that PARK owned and operated. PARK pled guilty in March 2014 to one count of mail fraud before U.S. District Judge J. Paul Oetken, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Cheon Park lined his pockets with millions of dollars meant to provide important services for special-needs children. Today, he was made to pay for his crimes through federal prison time and restitution in the millions of dollars. We will continue to do everything in our power to pursue and prosecute those who defraud the government, particularly those who shamelessly siphon scarce public money away from some of the city’s most vital programs.”
According to the Information, an earlier Criminal Complaint, and statements made at court proceedings:
Between 2005 and 2012, PARK deliberately inflated the amount of compensation Bilingual SEIT, a company PARK owned and operated, paid certain of its employees and contractors. He also misrepresented the type of work performed by certain employees on annual certified consolidated fiscal reports (“CFRs”) and financial statements submitted to NYSED and NYCDOE.
PARK owned and operated Bilingual SEIT from at least 2005 to 2012. During that time, Bilingual SEIT had a contract with the NYCDOE to provide publicly funded special education services and preschool programs to New York City schoolchildren aged three to five with physical, emotional, and/or developmental disabilities. Specifically, Bilingual SEIT received funding to provide: (1) special education itinerant teacher, commonly referred to as SEIT, services; (2) special education classes in a center-based setting for preschool students with special needs; (3) individual evaluations for preschool students with disabilities; and (4) physical, occupational, and/or speech therapy for preschool students who qualified for such services. As of September 2012, Bilingual SEIT operated out of five locations in Manhattan, Queens, and Brooklyn.
During the seven-year period that Bilingual SEIT was under contract with the NYCDOE, it claimed reimbursement for and received approximately $94.5 million in federal, New York State, and New York City funds to provide the services described above. In order to receive such money, PARK was required to file a CFR on behalf of Bilingual SEIT supported by audited financial statements with the NYSED. The CFR and audited financial statements represented the costs that Bilingual SEIT had incurred the previous year and the justification for those costs, and included compensation Bilingual SEIT purported to pay its employees and contractors. Each year, PARK signed the certification pages for the CFRs filed with the NYSED, which relied on the CFR and audited financial statements in determining the amount of public funds to pay Bilingual SEIT per student for the services Bilingual SEIT provided to New York City preschool students.
Beginning in approximately June 2011, the New York State Comptroller’s office (the “Comptroller”) conducted an audit of Bilingual SEIT to determine whether the costs reported by Bilingual SEIT on the CFRs for the years July 2007 through 2009 were properly calculated, justified, and allowable under guidance issued by the NYSED. In July 2012, the Comptroller issued a report that concluded that nearly $1.5 million of the costs that PARK certified for the two-year audit period should have been disallowed, including money paid to 26 employees whose time and attendance could not be substantiated. As a result of the Comptroller’s report, the NYCDOE cancelled Bilingual SEIT’s classes and declined to renew its contract with Bilingual SEIT.
In fact, PARK engaged in several schemes designed to inflate the costs Bilingual SEIT represented it incurred, resulting in more public money for Bilingual SEIT, much of which, as set forth below, was kicked back to PARK. PARK fraudulently received funds from New York State and New York City to pay multiple individuals who performed little or no work for Bilingual SEIT. At PARK’s request and direction, these individuals then kicked back as much as 50% of the salary they fraudulently received from Bilingual SEIT to PARK. PARK also fraudulently received funds from New York State and New York City to deliberately overpay other individuals who worked for Bilingual SEIT. At PARK’s request and direction, these individuals also kicked back a portion of the overpayment to PARK on a regular basis.
Further, in addition to receiving kickbacks, PARK used Bilingual SEIT funds for his personal benefit in other ways. PARK arranged for Bilingual SEIT to pay his ex-wife and ex-sister-in-law for work they did not perform, and also arranged for Bilingual SEIT to pay for tutoring for PARK’s children and for a Bilingual SEIT employee to clean PARK’s home twice a week.
In addition to his prison term, PARK, 46, of Manhasset, New York, was ordered to forfeit $1,924,318, representing the proceeds of the crime, as well as pay restitution in the amount of $2,151,318. Last week, PARK paid to the United States Marshals Service the entirety of the forfeiture amount. PARK was also sentenced to pay a $100 special assessment.
Mr. Bharara praised the investigative work of the Office of the State Comptroller, the Special Commissioner of Investigation for New York City’s Department of Education, and the Office of Inspector General for the United States Department of Education. He also thanked the Queens County District Attorney’s Office for its assistance.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorneys Paul Krieger and Martin Bell are in charge of the prosecution.
Private Detective Gets 21 Months for Tax FelonyRead the Press Release
Yaser Khalil Masso, 71, of Philadelphia, PA, was sentenced today to 21 months in prison and was ordered to pay $429,070 in restitution, including interest to the IRS for under-reporting the income that he earned from his detective agency. Masso filed materially false tax returns for tax years 2006 through 2009, substantially under-reporting his income from his sole proprietorship, the Masso Detective Agency. For tax years 2006 through 2009, Masso reported a total of $454,579 of taxable (net) income -- failing to report an additional $2.1 million in taxable income. Thus, Masso reported to the IRS, and paid taxes on, only a fraction of his income.
Masso’s accountants attempted to review his income tax returns with him but Masso was not interested. Masso failed to provide the records to his accountants that they needed to accurately complete his accounting and tax work. One of Masso’s accountants specifically asked him whether the 1099’s that Masso provided to his accountant included all of Masso’s income, and Masso falsely replied that they did. Despite not providing records to his accountants, Masso had a bookkeeping and invoice system in place to bill his customers for security guard services provided. Masso sent invoices to his customers regularly so that he could get paid and collect his revenue in an accurate and timely manner.
Masso opened bank accounts at various financial institutions during 2006 through 2009. Despite having access to bank accounts, Masso routinely cashed checks for significant dollar amounts from his business receipts at check cashing stores, paying additional fees to do so, but thereby hiding income. Masso did deposit some business checks in his bank accounts -- but (with one exception) he only deposited checks for amounts over $10,000, which, if cashed at a check casher, would have generated a Currency Transaction Report (“CTR”) and would have been reported to the government.
In addition to the prison term and restitution, U.S. District Court Judge Eduardo Robreno ordered one year of supervised release.
The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant United States Attorney Karen L. Grigsby.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Plattsburgh Man Arrested for Production of Child PornographyRead the Press Release
PLATTSBURGH, NEW YORK – Heath Powers, 33, of Plattsburgh, was arrested on August 11, 2014, and charged by complaint with production of child pornography announced United States Attorney Richard S. Hartunian and Federal Bureau of Investigation Special Agent-in-Charge Andrew W. Vale. Following an initial appearance before United States Magistrate Judge Larry Kudrle, Powers has been held without bond. If convicted, Powers faces at least 15 years and up to 30 years in prison, followed by a lifetime term of supervised release, a $250,000 fine, and registration as a sex offender.
The case is being investigated by the Federal Bureau of Investigation. If anyone has information regarding this matter, please contact the Federal Bureau of Investigation at telephone number 1- 800-CALL-FBI. The prosecution is being handled by Assistant United States Attorney Katherine Kopita.
The charges in the complaint are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Philadelphia Man Indicted in Jewelry Store RobberiesRead the Press Release
A Philadelphia man was indicted yesterday on charges relating to two Michigan jewelry store robberies, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office, Sheriff Larry Stelma, Kent County Sheriff’s Department and Chief Michael Patton, West Bloomfield Police Department.
Indicted was Nathaniel Pembrook, 42, of Philadelphia, Pennsylvania.
According to the indictment, on April 22, 2014, Pembrook, along with three other individuals, robbed two jewelry stores. The first robbery took place at Medawar Jewelers located on Plainfield Avenue in Grand Rapids. The second robbery took place at Tapper’s Diamonds and Fine Jewelry located on Orchard Lake in West Bloomfield. In both robberies, the robbers entered the stores during business hours with their faces covered or partially covered and brandished a firearm while ordering employees and customers to the floor. During the robbery at Medawar Jewelers, Pembrook was shot in the arm by one of the store owners. Blood recovered from the scene in Grand Rapids was DNA tested and determined to be that of Nathaniel Pembrook."We are using federal resources to address serious incidents of violent crime, such as these armed robberies, because of the high risk of harm they pose to public safety," McQuade said.
“The arrest and indictment of Mr. Pembrook for his involvement in these acts of violence reflects the dedication, cooperation, and persistence of law enforcement at every level,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “It is this collaboration—between federal, state and local authorities—that has brought justice to bear upon Mr. Pembrook, and we will continue those efforts as we move forward in the investigation.”
“This is another great example of local and federal authorities working together to keep our communities safe,” stated Kent County Sheriff Larry Stelma.
“I am very pleased that through an ongoing joint collaborative effort of the Federal Bureau of Investigation, the Kent County Sheriff’s Department and the West Bloomfield Police Department, a federal indictment has been obtained charging one of the alleged suspects in the robberies,” said Chief Michael Patton.
Pembrook has been charged with Interference with Commerce by Robbery, Possession of a Firearm in Furtherance of a Crime of Violence, Conspiracy to Interfere with Commerce by Robbery and being a Felon in Possession of a Firearm. If convicted on all charges, Pembrook faces up to life in federal prison.Pembrook was arrested in Philadelphia and is currently awaiting removal to Detroit for his arraignment on the charges.
The case was investigated by the FBI Oakland County Gang and Violent Crimes Task Force, the Michigan State Police, Oakland County Sheriff’s Office, Kent County Sheriff’s Department and the West Bloomfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel Lemisch with the United States Attorney’s Office for the Eastern District of Michigan in Detroit with the assistance of the United States Attorney’s Office for the Western District of Michigan.An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pennsylvania Company and Owner Sentenced for Violating the Clean Water and Clean Air ActRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Lycoming Construction Services, LLC., a Pennsylvania Limited Liability Company located in Williamsport, Pennsylvania, which was convicted of violating the Clean Air Act, was sentenced to two years probation and a fine of $100,000 by Chief U.S. District Court Judge William M. Skretny. In addition, Leo M. Williams, 66, the owner of Lycoming, was sentenced to one year probation and a fine of $25,000 for violating the Clean Water Act. As part of the sentencing, the corporation was also ordered to form an environmental training program for its employees, and Williams was ordered to pay $5,000 to the Occupational Safety and Health Administration to resolve OSHA violations stemming from this case.
Assistant U. S. Attorney Aaron J. Mango, who handled the case, stated that both cases stemmed from the demolition of the Dahlstrom industrial complex, located at 443-499 Buffalo Street in Jamestown, N.Y., from January 2012 to November 2013. This project involved the demolition of a cluster of condemned buildings on either side of the Chadakoin River, which is a water of the United States.
Prior to the start of the demolition, an asbestos survey identified that some of the buildings contained asbestos. In February 2012, company employees entered one of the condemned buildings and removed regulated asbestos containing material without adequately wetting it, in violation of the Clean Air Act asbestos work practice standards. In addition, water contaminated with dust and debris from the demolition was allowed to flow offsite directly into the Chadakoin River. Defendant Williams should have been aware that such contaminated water was flowing into the river, and acted negligently in allowing the water to be discharged.
The conviction is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent-In-Charge Neal R. Marzloff; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau and the U.S. Occupational Safety and Health Administration.Passaic County, N.J., Man Sentenced to 10 Years in Prison for Possession of Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A former delivery driver from Totowa, New Jersey, was sentenced today to 120 months in prison for possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Anthony Chiampi, 49, previously pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to an information charging him with one count of possession of child pornography. U.S. District Judge Faith S. Hochberg imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court: Chiampi is registered sex offender, having been previously convicted for endangering the welfare of a child. As a result, he is subject to community supervision for life.
On March 14, 2013, as part of his community supervision, officers of the N.J. Division of Parole visited Chiampi’s residence in Totowa. The officers discovered 63 disks that contained images and videos depicting child sexual abuse, including material that involved prepubescent minors.
In addition to the prison term, Judge Hochberg sentenced Chiampi to 10 years of supervised release.
U.S. Attorney Fishman credited the N.J. State Parole Board, under the direction of Chairman James T. Plousis, and special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: David A. Holman Esq., Assistant Federal Public Defender, NewarkOperation Dirty GlassRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in leading a conspiracy to distribute PCP.
Today’s sentence is a result of Operation Dirty Glass, a multi-agency investigation into large-scale PCP-trafficking in the Kansas City metropolitan area. Operation Dirty Glass resulted in a series of indictments that charged a total of 22 defendants.
Gerald W. Jones, 42, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 20 years in federal prison without parole.
On May 12, 2014, Jones pleaded guilty to his role in leading a conspiracy to distribute at least one kilogram of PCP. Jones is among 11 defendants who have pleaded guilty to the charges contained in a Nov. 9, 2012, federal indictment.
Undercover detectives and informants purchased PCP and crack cocaine from Jones on more than 20 separate occasions during the course of the investigation. A wiretap was authorized to assist investigators to identify Jones’ suppliers, associates, customers, and locations used in his drug trafficking operation. Investigators intercepted hundreds of drug-related telephone calls between Jones and his associates between Aug. 28 and Nov. 9, 2012. Investigators learned from the wiretap that Jones was primarily a PCP dealer who also sold crack cocaine.
Jones used various sources of supply for his drug trafficking business and would regularly sell bottles, dealer quantities, of PCP to his customers. Investigators learned that PCP dealers would commonly dip More brand cigarettes into the bottles containing liquid PCP and then distribute the PCP-dipped cigarettes, commonly called “sticks”, to PCP users.
On Nov. 14, 2012, investigators served a search warrant at Jones’ residence. During the search of Jones’ kitchen, investigators located numerous bottles that had been used to store PCP and several full bottles containing approximately 75 grams of PCP.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Kansas City, Mo., Police Department, the U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.One Defendant Sentenced and Two More Defendants Plead Guilty in Identity Theft Fraud Scheme Involving Personal Identifying Information from AT&T Customer FilesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Angel Arcos, 23, of Pompano Beach, was sentenced, and Monique Smith, 31, of Pompano Beach, and Arrington Basil Segu, 28, of Miami pled guilty before U.S. District Judge Marcia G. Cooke for participating in a conspiracy to unjustly enrich themselves by stealing personal identifying information and using the information to make unauthorized wire transfers from the victims’ bank accounts and obtain unauthorized credit or debit cards.
Arcos was sentenced to time served, to be followed by four years of supervised release. As a condition of his supervised release, Arcos was subject to 180 days of home detention with electronic monitoring. Arcos pled guilty on May 15, 2014, to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.
Smith pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft in violation of Title 18, United States Code, Section and 1028A. Segu pled guilty to one count of access device fraud and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Sentencing for Smith and Segu is scheduled for November 19, 2014.
On August 6, 2014, Judge Cooke sentenced Chouman Emily Syrilien, 25, of Lauderdale Lakes, to 34 months in prison, to be followed by three years of supervised release. Syrilien pled guilty to one count of possession of 15 or more unauthorized access devices and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A.
Co-defendants Jacqueline Nicole Lee Warrick, 26, of Miami, and Tracy Delva, 27, of Deerfield Beach, pled guilty on July 30, 2014, and Carlos Antonio Alexander, 24, of Orlando, pled guilty on July 16, 2014, to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Alexander’s sentencing is scheduled for October 1, 2014. Sentencing for Warrick and Delva is scheduled for October 15, 2014.
Trial is scheduled on September 22, 2014, for Shantegra La’Shae Godfrey, 23, of Deerfield Beach.
According to court documents, defendant Syrilien was employed by Interactive Response Technologies, Inc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Alexander, Delva, Godfrey, Smith and Warrick were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money.
Delva and Warrick both utilized fraudulently obtained debit and credit cards that bore their names as additional “authorized users” on victims’ accounts to make both retail purchases as well as cash advances in excess of $28,000. Alexander, Smith and Godfrey made retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity. From September 16 to 18, 2013, five withdrawals totaling $13,000 were made from the fraudulent account and deposited into Arcos’ checking account.
The defendants face a maximum of 30 years in prison for the conspiracy charge, a maximum of 10 years in prison for the access device fraud charge, and a mandatory term of two years in prison for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ohio Man Pleads Guilty to Threatening OfficersRead the Press Release
ABINGDON, VIRGINIA – A Crooksville, Ohio man has admitted to threatening to injure officers of the Lee County, Virginia Sherriff’s Office during a hearing this week in the United States District Court for the Western District of Virginia in Abingdon.
Jeffrey Allen Hinkle, Jr., 31, of Crooksville, Ohio, pled guilty to a one-count Information charging him with transmitting in interstate commerce a threat to injure another person.
This week in the United States District Court, Hinkle admitted that on May 21, 2014, he called the Lee County, Virginia Sherriff’s Office and threated to “pull-up beside every cruiser . . .with [a] county deputy and shoot the officer in his face” if the sheriff’s office did not intervene in a civil dispute Hinkle’s relatives were having with a neighbor in Lee County, Virginia.
At the sentencing scheduled for December 4, 2014 in Big Stone Gap, Hinkle faces a maximum possible penalty of up to 5 years in prison and/or a fine of up to $250,000.
The investigation of the case was led by Federal Bureau of Investigation with the assistance of the Lee County, Virginia Sheriff’s Office. The United States Marshals Service led the execution of the arrest warrant in Ohio. Special Assistant United States Attorney Kevin Jayne is prosecuting the case for the United States.
New York Man Admits Participating in Six Armed Robberies of New Jersey and New York Electronics StoresRead the Press Release
TRENTON, N.J. – A Brooklyn, New York, man admitted today to participating in six armed electronic store robberies, including robberies in Linden, New Jersey and Paramus, New Jersey, U.S. Attorney Paul J. Fishman announced.
Carl Williams, 30, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to a superseding indictment charging him with conspiracy to commit Hobbs Act robberies and brandishing a firearm in furtherance of a crime of violence. Williams has been in custody since his arrest on Feb. 14, 2013.
According to documents filed in this case and statements made in court: Between June 11, 2012, and Jan. 16, 2013, Williams conspired with others to commit a series of armed electronics store robberies in New Jersey and New York. During each robbery, Williams and other conspirators would assign “look-outs” to remain outside while the rest of the group, armed with a gun, entered the store, locked the front doors, and tied-up employees and customers with zip ties before stealing the merchandise.
The charge of conspiracy to commit Hobbs Act robberies carries a maximum potential penalty of 20 years in prison. The charge of brandishing a firearm in furtherance of a crime of violence carries a mandatory minimum of seven years in prison, which must run consecutive to any other prison sentence imposed, and a maximum of life in prison. Each count carries a maximum fine of $250,000. Sentencing is scheduled for Jan. 21, 2015.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea. He also thanked the Linden and Woodbridge police departments in New Jersey, as well as the New York City and Nassau County police departments and the Kings County District Attorney’s Office in New York for their work in this case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division.
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Williams, Carl Superseding Indictment
New Jersey Man Pleads Guilty to Operating Fraudulent Visa <br /> and Payroll Scheme to Facilitate Illegal ImmigrationRead the Press Release
A New Jersey man pleaded guilty today to orchestrating an eight-year scheme to falsify employment certifications to facilitate the illegal entry of Indian immigrants into the United States and to filing a false tax return.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey, Chief Richard Weber of Internal Revenue Service – Criminal Investigation (IRS-CI) and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
Sandipkumar Patel, 41, of Edison, New Jersey, pleaded guilty before U.S. District Judge William H. Walls of the District of New Jersey to conspiring to defraud the United States and to filing a false federal income tax return. Sentencing is scheduled for Jan. 6, 2015.
According to court documents filed with the plea agreement, from 2001 until 2009, Patel sponsored the visa applications of Indian nationals by falsely claiming to provide employment for them in the United States. Patel falsely certified on the visa applications that he would employ the immigrants in various technical fields at several New Jersey companies, thereby facilitating their illegal entry into the United States. Over the course of the scheme, immigrants paid Patel thousands of dollars for the false certifications to fraudulently secure the visas. To disguise the scheme, Patel issued payroll checks and other payroll forms. Patel required the immigrants to return the money from the checks and also to reimburse him for his payroll tax expenses. Patel used the fraudulent pay stubs and payroll checks to support false applications to extend the visas, and Patel charged the immigrants fees for the visa extensions.
As a result of falsely carrying the immigrant employees on his payrolls, Patel overstated his payroll expenses on his federal income tax returns by more than $1.4 million over four years, under-reporting his tax obligation by over $400,000 for those years.
This case was investigated by the IRS-CI and DSS. The case is being prosecuted by Senior Trial Attorneys Hope S. Olds and William H. Kenety of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Danielle M. Corcione of the District of New Jersey, with assistance from the Criminal Division’s Asset Forfeiture and Money Laundering Section.New Jersey Man Pleads Guilty to Operating Fraudulent Visa and Payroll Scheme to Facilitate Illegal ImmigrationRead the Press Release
NEWARK, N.J. – A New Jersey man pleaded guilty today to orchestrating an eight-year scheme to falsify employment certifications to facilitate the illegal entry of Indian immigrants into the United States and to filing a false tax return.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Chief Richard Weber of Internal Revenue Service – Criminal Investigation (IRS-CI) and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
Sandipkumar Patel, 41, of Edison, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to conspiring to defraud the United States and to filing a false federal income tax return. Sentencing is scheduled for Jan. 6, 2015.
According to court documents filed with the plea agreement, from 2001 until 2009, Patel sponsored the visa applications of Indian nationals by falsely claiming to provide employment for them in the United States. Patel falsely certified on the visa applications that he would employ the immigrants in various technical fields at several New Jersey companies, thereby facilitating their illegal entry into the United States. Over the course of the scheme, immigrants paid Patel thousands of dollars for the false certifications to fraudulently secure the visas. To disguise the scheme, Patel issued payroll checks and other payroll forms. Patel required the immigrants to return the money from the checks and also to reimburse him for his payroll tax expenses. Patel used the fraudulent pay stubs and payroll checks to support false applications to extend the visas, and Patel charged the immigrants fees for the visa extensions.
As a result of falsely carrying the immigrant employees on his payrolls, Patel overstated his payroll expenses on his federal income tax returns by more than $1.4 million over four years, under-reporting his tax obligation by over $400,000 for those years.
This case was investigated by IRS-CI and DSS. The case is being prosecuted by Senior Trial Attorneys Hope S. Olds and William H. Kenety of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Danielle M. Corcione of the District of New Jersey, with assistance from the Criminal Division’s Asset Forfeiture and Money Laundering Section.
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Patel, Sandipkumar Information
New England Compounding Center Supervising Pharmacist Arrested at Logan International AirportRead the Press Release
A Canton, Massachusetts, man was arrested today at Boston's Logan International Airport in connection with the ongoing criminal investigation of New England Compounding Center (NECC) by the Justice Department’s Civil Division and U.S. Attorney’s Office for the District of Massachusetts.
Glenn Adam Chin, 46, was attempting to board a plane to Hong Kong when he was arrested by federal authorities on one count of mail fraud. He is scheduled to appear before Chief Magistrate Judge Jennifer C. Boal in the U.S. District Court for the District of Massachusetts later today. The maximum sentence under the statute is 20 years in prison, followed by three years of supervised release and a $250,000 fine.
The U.S. Attorney’s Office and the Civil Division’s Consumer Protection Branch have conducted an active ongoing criminal investigation of NECC since the nationwide fungal meningitis outbreak began in the fall of 2012. Following the outbreak, the Center for Disease Control (CDC) reported that 751 patients across the country were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate, or MPA, compounded at NECC. The CDC reported that of those 751 patients, 64 died.
Chin was a supervising pharmacist at NECC who was involved in compounding the contaminated MPA that caused the outbreak. The criminal complaint charges Chin with participating in a scheme to fraudulently cause one lot of MPA to be labeled as injectable, meaning that it was sterile and fit for human use, and shipped to one of NECC’s customers, Michigan Pain Specialists. As alleged in the affidavit, after receiving the MPA from NECC, doctors at Michigan Pain Specialists injected the drug into their patients believing it to be injectable as labeled. As a result, 217 of those patients contracted fungal meningitis, and 15 of those patients died.
Although the criminal investigation of Chin and others is ongoing, the U.S. Attorney's Office charged and arrested Chin today after federal authorities learned that he was planning to leave the country on an international flight that was scheduled to depart this morning.
If you are a victim in the NECC matter you may call the U.S. Attorney's Office victim assistance message line at 888-221-6023 or email [email protected] to obtain case status information or assistance. You may also find information at: http://www.justice.gov/usao/ma/news.html .
U.S. Attorney Carmen M. Ortiz; Assistant Attorney General Stuart F. Delery for the Civil Division; Acting Special Agent in Charge James Royal of the Food and Drug Administration, Office of Criminal Investigations; Special Agent in Charge Vincent Lisi of the FBI’s Boston Field Division; Inspector in Charge Kevin Niland of the U.S. Postal Inspection Service; Special Agent in Charge Jeffrey Hughes of the U.S. Department of Veterans Affairs, Office of Inspector General Northeast Field Office and Resident Agent in Charge Patrick J. Hegarty of the Defense Criminal Investigative Service-Office of Inspector General in Boston, made the announcement today. The case is being prosecuted by George P. Varghese and Amanda P.M. Strachan of U.S. Attorney Ortiz’s Health Care Fraud Unit, and John W.M. Claud of the Civil Division’s Consumer Protection Branch.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nespelem Man Sentenced to Federal Prison for Multiple AssaultsRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Vernon Mason Saulque, age 32, of Nespelem, Washington, was sentenced on Wednesday, September 3, 2014, after having previously pleaded guilty on May 21, 2014, to four counts of Assault With a Dangerous Weapon. United States District Court Chief Judge Rosanna Malouf Peterson sentenced Saulque to a 21-month sentence on each count, to run consecutively, for a total of 84 months of imprisonment, to be followed by three years of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, on July 13, 2013, Saulque was at the home on the Colville Indian Reservation of one of the victims, when he was asked to leave because of inappropriate behavior. A few minutes later, the four victims got into a car and left the house. About one block from the house, Saulque, who had stepped out of his truck and waited for the victims, fired 16 rounds at the car with an AR-15-22 semi-automatic rifle, striking the car 8 times. Fortunately, nobody was struck. Saulque fled in his truck. He was arrested a short time later by Colville Tribal Police.
Michael C. Ormsby stated, “firearm violence is a significant issue in this country and we are very appreciative of the hard work and complete investigation done by the Colville Tribal Police and the FBI.” The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to aggressively prosecuting violent crimes, especially those committed with firearms that occur within federal jurisdiction, including the Indian reservations in the District.
This investigation was conducted by FBI, the Colville Tribal Police Department, and the assistance of the Washington State Patrol Crime Lab. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CR-13-00136-RMP
NECC Supervising Pharmacist Arrested at Logan International AirportRead the Press Release
BOSTON - A Canton man was arrested today at Boston’s Logan International Airport in connection with the U.S. Attorney’s Office’s and the Justice Department’s Civil Division’s ongoing criminal investigation of New England Compounding Center (NECC).
Glenn Adam Chin, 46, was attempting to board a plane to Hong Kong when he was arrested by federal authorities. He was charged in U.S. District Court with one count of mail fraud. He is scheduled to appear before Chief Magistrate Judge Boal later today.
The U.S. Attorney’s Office and the Civil Division’s Consumer Protection Branch have had an active ongoing criminal investigation of NECC since the nationwide fungal meningitis outbreak began in the Fall of 2012. Following the outbreak, the CDC reported that 751 patients across the country were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate, or MPA, compounded at NECC. The CDC reported that of those 751 patients, 64 died.
Chin was a supervising pharmacist at NECC who was involved in compounding the contaminated MPA that caused the outbreak. The criminal complaint charges Chin with participating in a scheme to fraudulently cause one lot of MPA to be labeled as injectable, meaning that it was sterile and fit for human use, and shipped to one of NECC’s customers, Michigan Pain Specialists. As alleged in the affidavit, after receiving the MPA from NECC, doctors at Michigan Pain Specialists injected the drug into their patients believing it to be injectable as labeled. As a result, 217 of those patients contracted fungal meningitis, of which 15 died.Although the criminal investigation of Chin and others is ongoing, the U.S. Attorney’s Office charged and arrested Chin today after federal authorities learned that he was planning to leave the country on an international flight that was scheduled to depart this morning.
If you are a victim in the NECC matter you may call the U.S. Attorney’s Office victim assistance message line at 888-221-6023 or email [email protected] to obtain case status information or assistance. You may also find information on our website at http://www.justice.gov/usao/ma/news.html.
The maximum sentence under the statute is 20 years in prison, followed by three years of supervised release and a $250,000 fine.
U.S.Attorney Carmen M. Ortiz; Assistant Attorney General for the Civil Division Stuart F. Delery; James Royal, Acting Special Agent in Charge of the Food and Drug Administration; Office of Criminal Investigations; Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Patrick J. Hegarty, Resident Agent-in-Charge, Office of Inspector General, Defense Criminal Investigative Service in Boston made the announcement today. The case is being prosecuted by George P. Varghese and Amanda P.M. Strachan of Ortiz’s Health Care Fraud Unit, and John W.M. Claud of DOJ’s Consumer Protection Branch.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Mount Olive Minister Sentenced in Child Pornography CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today in federal court United States District Judge Terrence W. Boyle, sentenced TIMOTHY JACK STRICKLAND to 151 months imprisonment followed by 5 years supervised release.
On February 18, 2014, a Federal Grand Jury returned a Criminal Indictment charging STRICKLAND. On May 14, 2014, STRICKLAND, pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
According to the investigation, in March, 2013, while attending training, a Federal Bureau of Investigation Task Force Officer engaged in a chat with STRICKLAND, who it was determined later, was a minister at Jones Grove Pentecostal Church in Mount Olive. During the chat the agent observed that STRICKLAND’s directory contained child pornography files. A search warrant was later executed at STRICKLAND’s residence, where a laptop, several harddrives and other media devices were seized. Computer forensics revealed approximately 124,391 images of child pornography.
The criminal investigation of this case was conducted by the Federal Bureau of Investigation, Wayne County Sheriff’s Office, Duplin County Sheriff’s Office and the Mount Olive Police Department. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Men Arrested in Bakersfield Indicted for Cocaine SmugglingRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jimmy Gil, 34, of Shafter, Jose Luis Montoya-Salazar, (Montoya), 42, of Mexico City, and Luis Ricardo Eslava-Corral (Eslava), 42, of Sinaloa, Mexico, charging them with conspiring to import, distribute, and possess with intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced. Montoya was also charged with being an alien found in the United States after two prior deportations.
According to court documents, on August 19, 2014, Customs and Border Protection officers at the Otay Mesa, California Port of Entry discovered cocaine in a hidden compartment in the floor of a trailer that was being driven by Eslava. Federal agents were called in and began following the truck. The truck made stops in San Diego and San Clemente and on August 20, 2014, continued driving toward Bakersfield. Gil met the truck at a site south of Bakersfield and took possession of the tractor trailer. Gil and Montoya began unloading 18 one-kilogram packages of cocaine from the compartment in the floor of the trailer and placed the packages in Montoya’s vehicle. Gil and Montoya were arrested before they were able to unload the remaining packages of cocaine. Follow-up investigation resulted in the seizure of over $3.1 million in cash hidden in an asphalt roller at another location in Bakersfield. Thirty-eight kilograms of cocaine were seized with an estimated street value of over $3 million.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, Kern County Sheriff’s Office, Tulare County Sheriff’s Office, and Bakersfield Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
The defendants are scheduled to be arraigned on September 8, 2014. If convicted of the drug conspiracy, they face 10 years to life in prison and a $10 million fine. Montoya also faces a maximum prison term of two years and a fine of $250,000, if convicted of being a deported alien found in the United States. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, Eslava and Montoya are subject to deportation to Mexico after serving any prison sentence imposed.
Man Who Shot at Wilmington Police Officer Sentenced to 420 Months in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today that in federal court, Chief United States District Judge James C. Dever III sentenced JERMAINE CORDOVA , 38, Council, North Carolina, to 420 months imprisonment, followed by 5 years of supervised release.
JERMAINE CORDOVA was named in an Indictment filed on August 21, 2013; charging him with Possession of a Firearm and Ammunition by a Felon. On March 26, 2014, CORDOVA pled guilty to this charge.
According to the investigation, on January 2, 2013, CORDOVA contacted a female stripper and asked her to strip for the victim in this case for $500.00. The female agreed and set up the meeting at her apartment via text message. Upon the victim’s arrival, CORDOVA, along with a male co-conspirator, ambushed the victim, shooting him in the leg. The victim fell to the ground and was shot at least four more times by CORDOVA and/or the co-conspirator. The victim identified CORDOVA as one of the shooters.
On January 29, 2013, a traffic stop was conducted by the Wilmington Police Department on a vehicle occupied by CORDOVA and the co-conspirator. An officer approached the stopped vehicle and asked CORDOVA, who was sitting in the driver’s seat, if he had anything on his person. CORDOVA surrendered a bag containing 12.85 grams of marijuana. CORDOVA’s left arm was restrained with a handcuff as he sat in the vehicle. CORDOVA then became upset and pulled out a loaded semi-automatic pistol, pointed it at the officer, and fired a shot. The officer returned fire missing CORDOVA. CORDOVA then began to flee on foot and ran into a second officer on the scene. CORDOVA raised his firearm at this officer and the officer fired, striking CORDOVA in the left leg. CORDOVA continued to flee and barricaded himself inside a storage building.
Police were forced to break down the door and found CORDOVA inside holding a firearm to his head. After several hours, CORDOVA finally came to the door of the storage building and put down his firearm. CORDOVA was immediately taken into custody and transported to a local hospital for medical treatment.
Investigation of this case was conducted by the Wilmington Police Department along with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Special Assistant United States Attorney Charity Wilson represented the government. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute violent crime, firearm related cases, and narcotic crimes.
Madill Woman Pleads Guilty to Wire FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that KRISTEN RENEA BROWN, age 19, of Madill, Oklahoma, pled guilty to an Information charging her with WIRE FRAUD, in violation of Title 18, United States Code, Section 1343.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Information alleged that from on or about September 23, 2013 to on or about October 1, 2013, KRISTEN RENEA BROWN, within the Eastern District of Oklahoma and elsewhere, the defendant herein, did execute a scheme to defraud Victim #1, an account holder at Landmark Bank in the Eastern District of Oklahoma, to-wit: the defendant transferred money from the bank account of Victim #1 into Defendant’s own bank account at Landmark Bank, and by means of debit card used said money to purchase items for her own use and benefit and the use and benefit of others. As part of the scheme to defraud, the defendant transmitted and caused to be transmitted by means of wire communication in interstate commerce, writings, signs, signals, pictures, or sounds, for the purpose of executing and attempting to execute the aforesaid scheme and artifice to defraud.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion.
The statutory range of punishment is 20 years imprisonment and/or a fine of up to $250,000.
Assistant United States Attorney Chris Wilson represented the United States.
Luzerne County Man Pleads Guilty to Conspiracy to Commit Sex Trafficking of A MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 30-year-old Pittston resident pleaded guilty today before Senior U.S. District Court Judge Edwin M. Kosik to conspiring with others to recruit, harbor, and transport minor females to engage in commercial sex acts for money during the summer of 2013 in Luzerne and Dauphin counties.
According to United States Attorney Peter Smith, the defendant, Gregory Boone, admitted to participating in a scheme to use minor females to engage in prostitution. Boone and his co-conspirators used cell phones to produce and transmit photographs of the females which were posted on a website to facilitate prostitution activities in motels in Luzerne County and in the Harrisburg area of Pennsylvania.
Boone was indicted by a federal grand jury in December 2013, as a result of an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, Pittston Police, and the Luzerne County District Attorney’s Office.
Boone faces a potential maximum sentence of life in prison and a $250,000 fine. Judge Kosik ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Keshena, WI Man Sentened to Prison for Sexual AbuseRead the Press Release
United States Attorney James L. Santelle announced that James F. King, Sr., (age: 40), of Keshena, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on July 28, 2014, in United States District Court to 87 months of imprisonment, followed by a term of 10 years on supervised release. The sentence was the result of a guilty plea by King on March 25, 2014, to a federal indictment charging him with one count of sexually abusing a person incapable of declining participation.
The investigation revealed that on November 20, 2013, King, sexually abused a 25-year-old female, who was asleep at the time. The victim indicated that she sleeping in the basement of the residence when she was awakened by someone tugging at her clothing. The victim kicked King and yelled for help as he ran from the residence. Law enforcement interviewed King and he admitted that he sexually assaulted the victim.
The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.
# # # #Keshena, WI Man Sentenced to 20 Years in Prison for Sexual Abuse of a ChildRead the Press Release
United States Attorney James L. Santelle announced that James A. Peters, (age: 27), of Keshena, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on August 28, 2014, in United States District Court to 240 months of imprisonment, followed by a term of 15 years on supervised release. The sentence was the result of a guilty plea by Peters on May 28, 2014, to a federal information charging him with one count of engaging in a sex act with a person incapable of appraising the nature of the conduct.
The investigation revealed that on January 8, 2014, Peters, sexually abused an 11-year-old female. Peters admitted that he sexually assaulted the victim.
The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.
# # # # #Jury Convicts Columbia Man of Heroin ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was convicted by a federal trial jury today of his role in a conspiracy to distribute heroin.
Clifford Andrew Lake, 55, of Columbia, was found guilty of participating in a conspiracy to distribute heroin in Boone County, Mo., from Sept. 24 to Oct. 28, 2013.
Co-defendants Ravid Donald Smith, Jr., 50, and Lemont Michael Livingston, 27, both of Columbia, have pleaded guilty to their roles in the drug-trafficking conspiracy.
Evidence introduced during the trial indicated that Lake accompanied co-defendants Smith and Livingston during multiple trips to Chicago to obtain heroin, and that he assisted them in selling heroin to others.
In January 2013, Columbia police officers began receiving information that Livingston was obtaining heroin from St. Louis, Mo., and distributing it in the Columbia area. An investigation revealed that beginning in late summer 2013, Livingston began to bring drugs from Chicago, and was being assisted by Smith and Lake. Investigators used a cooperating source to make a controlled drug buy from Smith on Sept. 24, 2013. Livingston and Lake were present during the transaction.
On Oct. 28, 2013, investigation revealed that Livingston was en route back to Columbia from Chicago, and that he possessed a distribution quantity of heroin. Officers had obtained a search warrant for Livingston’s residence and decided to serve it on that date. At approximately 7:05 a.m. Livingston arrived at his residence, driving a blue BMW X5. Officers made contact with him, detained him, and advised him of the search warrant. The BMW was searched and inside a backpack located in the vehicle, officers recovered a plastic bag containing 196 grams of heroin.
Officers then entered Livingston’s residence and encountered Lake inside. During a search of the residence, additional items associated with drug trafficking were recovered, including digital scales, cutting materials for the heroin, and a handgun.
Livingston admitted he made multiple trips to Chicago to obtain heroin, and that he had just returned with a quantity of heroin. He stated that Smith had accompanied him, and had also returned with a shipment of heroin. Livingston told officers that he was responsible for collecting money for the sale of heroin.
A cooperating witness agreed to assist investigators in making contact with Smith, and acquired 32 grams of heroin from him. Smith was arrested later that day.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for about half an hour before returning the guilty verdict to U.S. District Judge Nanette K. Laughrey, ending a trial that began Wednesday, Sept. 3, 2014.
Under federal statutes, Lake is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $1 million. Smith and Livingston are each subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $5 million. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration and the Columbia, Mo., Police Department.Jasper County Man Pleads Guilty to Producing Child Porn, Faces at least 15 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jasper County, Mo., man who contacted a child victim on Facebook pleaded guilty in federal court today to producing child pornography.
Ian Holman, 33, of Jasper County, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in an Oct. 1, 2013, federal indictment.
According to court documents, law enforcement authorities received reports regarding two minors that Holman contacted via Facebook. One of the minors, a 13-year-old in Carthage, Mo., told officers that Holman (using the screen name “Lucky Holman”) offered to pay her $75,000 to $100,000. He also asked her to send him sexually explicit pictures of herself, which she did.
On Sept. 11, 2013, after receiving the report from Jane Doe, a sheriff’s deputy was dispatched to Holman’s residence. Holman attempted to elude the deputy by running out the back of the house and into the woods. The deputy, along with two other officers and a K9 unit, pursued Holman into the woods. The officers searched for Holman for approximately 45 minutes. The deputy was able to contact Holman by phone and persuade him to turn himself in.
According to court documents, Holman told officers that he friended numerous 12-to-14-year-old girls in the Carthage and Webb City area and used Facebook instant messaging to contact the girls.
Under federal statutes, Holman is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Jasper County, Mo., Sheriff’s Department and Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."